Friday, January 25, 2013

UGCNET - Commerce 08 (Dec' 2006) - Paper II

Note : This paper  contains  fifty (50)  objective-type  questions,  each  question  carrying two (2) marks.  Attempt all of them.
1. What is the target of GDP growth rate envisaged in the 10th Five year plan ?
(A) 10% (B) 9% (C) 8% (D) 11%

2. Kyoto Protocol is relating to :
(A) Competition (B) Consumer Protection
(C) Environment Protection (D) Atomic Energy generation

3. Which of the following should be achieved by a business firm at the earliest ?
(A) Budgeted sales (B) Break-even Point
(C) ROI (D) Market  share

4. What does  the  lower Debtor-Turnover Ratio  indicate ?
(A) Quick  recovery (B) Delay in recovery
(C) High Debtors (D) None of the above

5. Price discrimination policy helps in increasing profits in case of :
(A) Perfect  competition (B) Monopolistic Competition
(C) Monopoly (D) Oligopoly

6. The nature of Cross-price elasticity of demand in case of complementary products will be :
(A) Positive (B) Negative
(C) (A) and  (B) both (D) Zero

7. Depiction of relationship present between two variables is called :
(A) Correlation (B) Regression
(C) Dispersion (D) Location

8. RAM stands for :
(A) Random Access Memory (B) Readable Access Memory
(C) Read A Machine (D) Read A memory

9. According  to David C. McClelland, an  individual’s major motive  to work  include  the need for :
(A) Achievement (B) Affiliation
(C) Power (D) All of the above

10. In the line and staff form, the function of staff is to :
(A) Obey the line (B) Serve the line
(C) Inform the line (D) Advise the line

11. Branding decisions are based on :
(A) Market Research (B) Assessment of customer needs
(C) Cost of the product (D) (A) and (B) above

12. Which element of the promotion mix do wholesalers primarily rely on to achieve their promotional objectives ?
(A) Advertising (B) Trade Promotion
(C) Personal Selling (D) Direct marketing

13. What are  the Considerations  in designing capital structure of a corporate ?
(A) Trading on Equity (B) Cost of Capital
(C) Profitability (D) All of the above

14. Which of  the  following methods of  inventory valuation  results  in  lower valuation of inventory and low income when inflation is on the rise ?
(A) LIFO (B) FIFO (C) Simple average method (D) Weighted average method

15. HRM is concerned with :
(A) Workers (B) Managers
(C) Field staff (D) All employees

16. The sum total of emotional and informational behaviour is called :
(A) Motivation (B) Talent (C) Intuition (D) Attitude

17. NABARD has been established on  the recommendation of  :
(A) Talwar Committee (B) Tandon Committee
(C) CRAFI CARD (D) James Raj Committee

18. Reserve Bank of India is :
(A) an extension wing of Ministry of Finance, Government of India.
(B) a body Corporate, having perpetual succession and a Common Seal.
(C) an  institution owned by  Indian Banks Association.
(D) a Private Sector Company.

19. A Derivative is a :
(A) Derived asset (B) Derived  financial asset
(C) Derived from net assets (D) None of the above

20. Intellectual Property Rights are pertaining to :
(A) Medicines  already patented
(B) Matters published on or before 1990
(C) Import of goods and services
(D) None of the above

21. Which one of the following pairs is not correctly matched ?
(A) Capital Expenditure  : Transportation  costs of a machine
(B) Funds Flow Statement  : Working Capital
(C) Reduction of Share Capital  :   Reconstruction
(D) Contribution : Sales — Cost

22. Consumer  attains  equilibrium when he maximises his utility, given his  income  and market prices of two products of :
(I) Marginal  rate  of  substitution  be  equal  to  the  ratio  of  commodity  prices  i.e.
(II) Indifference curve is convex to the origin.
(A) Only (I) is true
(B) Both (I) and (II) are true
(C) Only (II) is true
(D) Neither (I) nor (II) is true

23. Assertion (A) : Chi-Square  test  is  used  to measure  the Association  between  two attributes.
Reason (R) : We apply Non-parametric tests like Chi-Square test for data measured on week scale like Nominal Scale or Ordinal Scale.
(A) (A) is true but (R) is wrong
(B) (A) is wrong but (R) is true
(C) Both  (A) and  (R) are wrong
(D) Both  (A) and  (R) are  true

24. Assertion (A) : A Manager delegates  authority.
Reasoning (R) : Manager wants to shrink his responsibility.
(A) Both assertion and  reasoning are  correct.
(B) Assertion is wrong but reasoning is correct.
(C) Assertion is correct but reasoning is wrong.
(D) Both assertion and  reasoning are wrong.

25. Arrange  the  following concepts/acts  in  the order  in which  they came  into  force  :
(i) Competition Act.
(ii) Foreign Exchange Management Act.
(iii) Consumer Protection Act.
(iv) Securities and Exchange Board of  India Act.
Code :
(A) (iii) (iv) (ii) (i)
(B) (iv) (iii) (i) (ii)
(C) (i) (ii) (iv) (iii)
(D) (ii) (i) (iii) (iv)

26. How  are  the  following  items  arranged  in  the  liability  side of  the Balance Sheet of  a Company  ?
(i) Current Liability and Provisions
(ii) Secured Loans
(iii) Share Capital
(iv) Unsecured Loans
(v) Reserve and Surplus
Code :
(A) (i) (ii) (iii) (iv) (v)
(B) (iii) (i) (ii) (iv) (v)
(C) (iii) (v) (ii) (iv) (i)
(D) (iii) (v) (ii) (i) (iv)

27. Elasticity is commonly stated in the form of :
(A) 1%  change (B) 5%  change
(C) 5% (D) All of these

28. Which  test we normally apply  for Qualitative data ?
(A) ‘t’ test (B) ‘F’ test
(C) x2 chi-square  test (D) ‘z’ test

29. Consider  the  following  steps of process of decision  - making  and  select  the  correct sequence  :
(i) Defining  the problem.
(ii) Selection of best alternatives and  implementation.
(iii) Considering  limiting  factors.
(iv) Considering  alternatives.
Code :
(A) (i) (ii) (iii) (iv)
(B) (iii) (i) (iv) (ii)
(C) (i) (iv) (iii) (ii)
(D) (i) (iii) (iv) (ii)

30. A marketing concern generally taps sources for financing its activities from :
(A) Owned Capital (B) Bank Credit
(C) Trade Credit (D) All of the above

31. Consider the following steps in the process of Capital Budgeting :
(i) Identification of  investment proposals.
(ii) Fixing priorities.
(iii) Evaluation of various proposals.
(iv) Selection and preparation of Capital Budgets.
(v) Implementation.
(vi) Performance Review.
Which of the sequence of these steps is correct :
(A) (i) (ii) (iii) (iv) (v) (vi)
(B) (ii) (i) (iii) (iv) (v) (vi)
(C) (i) (iii) (ii) (iv) (v) (vi)
(D) (i) (iv) (iii) (ii) (v) (vi)

32. Arrange the following in the order in which they are practised :
(i) Promotion
(ii) Performance  appraisal
(iii) Recruitment
(iv) Training  and Development
Code :
(A) (iii) (ii) (iv) (i)
(B) (iii) (ii) (i) (iv)
(C) (iii) (i) (iv) (ii)
(D) (iii) (iv) (ii) (i)

33. E-banking is synonymous with :
(A) Tele - Banking (B) Internet Banking
(C) Euro Banking (D) None of the above

34. Arrange the following in the order of their inception :
(i) WTO
(ii) World Bank
(iii) SAFTA
(iv) ADB
Code :
(A) (ii) (iv) (i) (iii)
(B) (iii) (i) (iv) (ii)
(C) (iv) (iii) (ii) (i)
(D) (i) (iv) (iii) (ii)

35. Match  the  following  :
List - I List - II
(a) Capital Market (i) IRDA
(b) Monetary Policy (ii) SEBI
(c) Telecom (iii) RBI
(d) Insurance (iv) TRAI
Code :
     (a) (b) (c) (d)
(A) (ii) (iii) (i) (iv)
(B) (ii) (iii) (iv) (i)
(C) (ii) (iv) (iii) (i)
(D) (ii) (i) (iv) (iii)

36. Match  the  following  :
List - I List - II
(a) Matching Principle (i) Ignores future profit estimations
(b) Materiality Principle (ii) Normal basis for valuing assets
(c) Conservatism Principle (iii) Revenues and expenses of a particular period
(d) Cost Principle (iv) Relates  to  relative  size or  importance of  item or event
Code :
    (a) (b) (c) (d)
(A) (i) (iv) (ii) (iii)
(B) (ii) (iii) (iv) (i)
(C) (iii) (iv) (i) (ii)
(D) (iv) (iii) (ii) (i)

37. Match  the  following  :
            Group - I Group - II
      (Products) (Market Structure)
(a) Food Grain (i) Monopoly
(b) Air-Lines (ii) Pure Competition
(c) Railway (iii) Monopolistic
(d) Cars (iv) Oligopoly
Code :
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (ii) (iv) (i) (iii)
(C) (iii) (i) (iv) (ii)
(D) (iv) (ii) (iii) (i)

38. Match  the  following  :
Group - I Group - II
(a) Simple Random Sampling (i) Hetrogenous
(b) Stratified Random Sampling (ii) Homogenous
(c) Cluster Sampling (iii) Chronological list of units
(d) Systematic Sampling (iv) Forest Tree type units
Code :
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (iii) (i) (iv) (ii)
(C) (ii) (i) (iv) (iii)
(D) (iv) (iii) (ii) (i)

39. Match List - I with List - II and select the correct answer using the codes given below the lists :
               List - I List - II
(Propounder’s Name) (Theories)
(a) Maslow (i) Hygiene Theory
(b) Herzberg (ii) X and Y Theories
(c) L.G. Urwick (iii) Need Hierarchy
(d) Mc. Gregor (iv) Z Theory
Code :
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (ii) (i) (iv) (iii)
(C) (iv) (iii) (ii) (i)
(D) (iii) (i) (iv) (ii)

40. Match  the  following  :
                       Part - A Part - B
(Market Segmentation) (Factors of Segmentation)
(a) Psychographic (i) Personality groups
(b) Demographic (ii) Occupation
(c) Behavioural (iii) Brand Loyalty
(d) Geographical (iv) Population Size
Code :
(a) (b) (c) (d)
(A) (i) (ii) (iv) (iii)
(B) (ii) (i) (iii) (iv)
(C) (i) (ii) (iii) (iv)
(D) (ii) (i) (iv) (iii)

41. Match  the  following  :
               Part - I Part - II
(a) Total Debt Ratio (i) Total Debt / Capital Employed
(b) Debt - Equity Ratio (ii) Total Debt / Net Worth
(c) Total Capital - Equity Ratio (iii) Capital Employed / Net Worth
(d) Interest Coverage Ratio (iv) EBIT / Interest
Code :
     (a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (ii) (i) (iii) (iv)
(C) (i) (ii) (iv) (iii)
(D) (i) (iii) (iv) (ii)

42. Match Items from List - I with the Items in List - II :
                                 List - I List - II
(a) Psychoanalytical Theory (i) Strong inter linkages
(b) Scientific Management Approach (ii) Personality
(c) Subsystems of HRM (iii) Task
(d) Basic elements of a Job (iv) F.W. Taylor
Code :
    (a) (b) (c) (d)
(A) (ii) (iv) (i) (iii)
(B) (ii) (iii) (i) (iv)
(C) (i) (iii) (ii) (iv)
(D) (ii) (iv) (iii) (i)

43. Match  the  following  :
            List - I List - II
(Name of the Bank) (Year of Establishment)
(a) SBI (i) 1990
(b) SIDBI (ii) 1955
(c) NABARD (iii) 1981
(d) EXIM BANK (iv) 1982
Code :
      (a) (b) (c) (d)
(A) (ii) (i) (iii) (iv)
(B) (i) (ii) (iv) (iii)
(C) (ii) (iii) (iv) (i)
(D) (ii) (i) (iv) (iii)

44. Match  the  following  :
                    List - I List - II
(Export Processing Zones) (Location in City)
(a) Uttar Pradesh (i) Noida
(b) Tamil Nadu (ii) Chennai
(c) West Bengal (iii) Falta
(d) Andhra Pradesh (iv) Visakhapatanam
Code :
(a) (b) (c) (d)
(A) (iii) (ii) (iv) (i)
(B) (ii) (i) (iii) (iv)
(C) (i) (ii) (iii) (iv)
(D) (i) (ii) (iv) (iii)

Read  the  following passage and answer  the questions  from 45  to 50.
“Full Convertibility” The Prime Minister feels that the rupee’s full Convertibility is an idea whose time has come, and since these things are unstoppable, we might as well prepare a  road map  for  it.   This  is  salutary.   Of  course, a  road map  to Convertibility  is quite different from Convertibility itself.  A committee headed by Dr. C. Rangarajan had prepared one such road map in 1997.  The road map lost its way, thanks to the Asian  financial crisis  that soon broke out.   As  India successfully warded off the  contagion, policy-makers  thanked  the absence of  full  convertibility.   Things have changed significantly since  then.    It’s not  just  that our  forex  reserves have ballooned to a size that should reassure the most worry-prone of central bankers on the count of perceived adequacy.  India is now recognized by the World as an economy that will sustain high growth.  The combined fiscal deficit of the Centre and the States is on the way down, along a path marked by milestones of deficit reduction mandated by law.  This grants the central bank the flexibility it needs in monetary policy in a regime of uncontrolled cross - border capital movements. Import duties have come down significantly, forcing companies to acquire genuine international competitiveness, and domestic tax reform lends a hand to the process. The  rupee’s movement  against major  currencies  is  no  longer  steadfastly downwards.   A couple of  scams  and  their backlash have greatly  enhanced  the quality of capital market regulation.  All these favour Convertibility.  But that is not  enough.    Since one  economic  agent’s  external  exposure  impacts  another’s, the system must allow the consequences of such exposure to work its way through, fast.   Financial  reporting must  improve,  the market  for  corporate  control must work and redeployment of the assets of failed firms via liquidation must happen fast.   Reconstructing bad assets cannot remain shuffling paper  from one agency to another.  The RBI needn’t twiddle its thumbs while these needed changes get instituted.  Preparing for the prospect of any Tom, Dick or Hari buying stocks on NSE means shedding its allergy to FII sub-accounts right now.

45. Why was the road map to Convertibility lost its way ?
(A) Low  foreign exchange  reserve
(B) Ineffective  regulatory  frame work
(C) High fiscal deficit
(D) Asian Financial Crisis

46. Which of the following factors contribute to full Convertibility ?
(A) Economy is prepared to sustain high growth.
(B) Tax reforms and low fiscal deficit.
(C) Good Forex reserves and an efficient Central Bank.
(D) All of the above.

47. What we need for full Convertibility ?
(A) Political will
(B) A Committee of Experts
(C) More  Institutional Strength
(D) Financial  reforms

48. “Financial Reporting must improve”.  It refers to :
(A) Indian Economy
(B) R B I
(C) F I I
(D) Companies

49. Selling of doubtful debts to a third party for collection of the debts is called :
(A) Factoring Service
(B) N P A Service
(C) F I I Service
(D) Restructuring Service

50. Which of the following factors has enhanced the quality of SEBI regulations ?
(A) Financial Sector Reforms
(B) Tax Reforms
(C) Capital Market Scams
(D) Increasing Foreign Exchange Reserve