Paper – II
Note : This paper contains fifty (50) objective type questions, each question carrying two (2) marks. Attempt all the questions.
1. If the amount claimed by a consumer as compensation is Rs. 89 Lacs, the case under The Consumer Protection Act shall be filed with
(A) District Consumer Redressal Forum
(B) State Consumer Disputes Redressal Commission
(C) National Consumer Disputes Redressal Commission
(D) Supreme Court
2. Which of the following does not fall within the jurisdiction of MRTP Commission ?
(A) Prevention of Monopolistic Trade Practices.
(B) Prevention of Restrictive Trade Practices.
(C) Prohibition of Unfair Trade Practices.
(D) Regulation of Combinations.
3. Which of the following is not a part of the economic environment of business ?
(A) Competitive Environment (B) Economic System
(C) Changes in Patent Laws (D) None of these
4. Laissez faire policy is adopted in
(A) Socialistic economic system
(B) Capitalistic economic system
(C) Mixed economic system
(D) Communist economic system
5. Relaxing the restrictions and controls imposed on business and industry means
(A) Liberalisation (B) Privatisation
(C) Globalisation (D) None of these
6. A variable such as activity that causes cost over a given time is
(A) Cost Driver (B) Cost Behaviour
(C) Cost Centre (D) None of the above
7. The concept of budget that requires all levels to work from scratch is
(A) Flexible Budget (B) Total Budget
(C) Master Budget (D) Zero Base Budget
8. Accounting Standard on the “Effect of Changes in Foreign Exchange Rates” is
(A) AS 11 (B) AS 13
(C) AS 18 (D) None of the above
9. Land is not depreciable asset because
(A) Its value always increases
(B) There is no maintenance required
(C) Life of land is unlimited
(D) None of the above
10. The sales at which a firm would earn profit after tax @ 8% of sales, if fixed cost is Rs. 45,000 ; selling price Rs. 50 per unit, variable cost Rs. 30 per unit and tax rate 20% :
(A) Rs. 90,000 (B) Rs. 1,50,000
(C) Rs. 1,68,000 (D) None of the above
11. The elasticity of demand for luxury goods is
(A) Infinite (B) More than one
(C) Less than one (D) Equal to one
12. Profits are maximised at a point where
(A) MR = MC (B) MR < MC
(C) MR > MC (D) AC > MC
13. The concept of “consumer surplus” was introduced and developed by
(A) E.A.G. Robinson (B) J.M. Keynes
(C) Lionel Robbins (D) Alfred Marshall
14. In Law of Variable Proportions, initially when MP rises
(A) TP rises at a decreasing rate.
(B) TP rises at an increasing rate.
(C) AP rises less than proportionately.
(D) AP rises more than proportionately.
15. Which one of the following statements is correct ?
(A) Monopolist charges the maximum possible price.
(B) Monopolist always makes (economic) profit.
(C) Monopolist operates on an inelastic demand curve.
(D) None of the above
16. The Central Processing Unit of a computer consists of
(A) Input, Output and Processing.
(B) Control Unit, Primary Storage and Secondary Storage.
(C) Control Unit, Arithmetic-logic Unit and Primary Storage.
(D) None of the above.
17. If the sample size increases, the sampling error
(A) Decreases (B) Increases
(C) Remains constant (D) None of the above
18. Goodness of fit of a distribution is tested by
(A) t-test (B) Chi-square test
(C) F-test (D) None of these
19. Probability of rejecting the null hypothesis when it is true, is called
(A) Type-II-error (B) Type-I-error
(C) Standard error (D) None of these
20. Standard error of mean is defined as
(A) standard deviation of the sampling distribution of mean.
(B) standard deviation of data.
(C) inter-quartile range of the data.
(D) none of these.
21. Who first propounded the principle of ‘unity of command’ ?
(A) F.W. Taylor (B) Elton Mayo
(C) Peter F. Drucker (D) Henry Fayol
22. Which element is not necessary in each objective under MBO Approach ?
(A) Time element (B) Cost element
(C) Human Relation element (D) Measurable element
23. Techniques of managerial control are useful in
(A) selection of plant location.
(B) identifying appropriate technology
(C) profit planning
(D) conducting shareholders’ meeting
24. The function of attracting, acquiring, retaining and developing human resources in an organisation is called
(A) recruitment (B) induction
(C) training and development (D) staffing
25. In terms of Blake-Mouton’s managerial grid approach, a production oriented leader will be one who adopts
(A) 1.1 style (B) 9.1 style
(C) 9.9 style (D) 5.5 style
26. The strategy of introducing a product with high introductory price is called
(A) penetration strategy (B) skimming strategy
(C) pull strategy (D) push strategy
27. The concept of four P’s as elements of marketing mix was given by
(A) Philip Kotler (B) W.J. Stanton
(C) E.J. McCarthy (D) Bruce J. Walker
28. Which out of the following is not a type of non-store retailing ?
(A) Limited line stores (B) Automatic vending
(C) Direct selling (D) Telemarketing
29. A product line strategy wherein a company adds a higher priced product to a line in order to attract a broader market which helps the sale of its existing lower priced products is called
(A) Trading up (B) Trading down
(C) Life cycle extension (D) Product line extension
30. Which of the following is not a tool of sales promotion ?
(A) Sales contests (B) Free gifts
(C) Point of purchase display (D) Public Relations
31. Use of fixed interest securities in the capital structure is called
(A) operating leverage (B) financial leverage
(C) overall leverage (D) none of the above
32. If NPV is positive, the IRR will be
(A) Positive (B) K = R
(C) K < R (D) None of the above
33. According to Walter, firm should pay 100% dividend if
(A) r > k (B) r = k
(C) r < k (D) none of the above
34. Sensitivity analysis is performed to
(A) Ascertain risk
(B) Determine profitability
(C) Build scenario for risk profile
(D) None of the above
35. Right shares enjoy preferential rights with regard to
(A) Payment of dividend (B) Payment of retained earnings
(C) Repayment of capital (D) None of the above
36. The Industrial Disputes Act, 1947 provides the following industrial relations machinery for resolution of conflicts except
(A) Conciliation (B) Arbitration
(C) Negotiations (D) Adjudication
37. Job evaluation is a technique which aims at
(A) Establishing fair and equitable pay structure.
(B) Analysing requirement of updating technology.
(C) Assessing safety requirement of jobs.
(D) Improving productivity.
38. Induction is an integral part of
(A) Training (B) Selection
(C) Recruitment (D) None of the above
39. PIP test seeks to measure
(B) Personality, Interest and Preferences
(C) Quality of a product
(D) Preferred Investment Plans
40. The Government of India introduced “The Workers’ Participation in Management” Bill in Parliament in
(A) 1983 (B) 1988
(C) 1990 (D) 1981
41. The features of the Commercial Paper are
(A) It is an unsecured money market instrument issued in the form of promissory note.
(B) The highly rated corporate borrowers can raise short term funds through this instrument.
(C) It is an additional instrument to the investing community.
(D) All of the above
42. Banking ombudsman may reject the complaint
(A) immediately after receipt. (B) after hearing both parties.
(C) at any stage. (D) none of the above
43. Which of the following entities provide “Take out Finance” to banks engaged in financing of infrastructure projects ?
(A) ICICI (B) SIDBI
(C) IDFC (D) RBI
44. Currency chest balance will be periodically verified by
(A) Bank’s own officials (B) RBI officials
(C) Both (A) and (B) (D) Officials of AG’s office
45. SEBI is
(A) Regulatory Authority (B) Statutory Authority
(C) Both (A) and (B) (D) None of these
46. The International Monetary Fund has estimated India’s contribution to World Gross Domestic Product in Purchasing Power Parity (PPP) terms for 2007
(A) 4.6 percent (B) 6.4 percent
(C) 7.1 percent (D) 8.9 percent
47. The World Bank is known as
(A) IMF (B) IDA
(C) IFC (D) IBRD
48. “De-coupling” denotes
(A) Indian market may be cut off from global markets so that it may not be affected by global volatility.
(B) separating the birds affected by bird-flu.
(C) that markets are independent.
(D) None of the above
49. Which of the country’s banking have been brought under “Sanctions by U.S.A. recently” ?
(A) Iraq (B) North Korea
(C) Pakistan (D) Iran
50. How many member countries are there in the “World Customs Organisation” ?
(A) 160 (B) 162
(C) 172 (D) 180