Saturday, January 26, 2013

UGCNET - Commerce 08 (Dec' 2010) - Paper II

Paper – II
Note : This paper contains fifty (50) objective type questions, each question carrying two (2) marks. Attempt all the questions.

1. India abolished the quantitative restrictions on imports of 1429 items in 2000 and 2001 as per the commitment to which of the following ?
(A) South Asian Free Trade Association (SAFTA)
(B) General Agreement on Tariffs and Trade (GATT)
(C) World Trade Organisation (WTO)
(D) Non-Aligned Movement

2. Globalization is a term used to describe the process of removal of restrictions on which of the following ?
(A) Foreign Trade
(B) Investment
(C) (A) and (B) above
(D) None of the above

3. When a company takes over another one and clearly becomes a new owner, the action is called
(A) Merger
(B) Acquisition
(C) Strategic Alliance
(D) None of the above

4. Match the following two lists of statements.
                                List – I List – II
I. Rate at which RBI gives loans to Commercial Banks by discounting bills 1. Bank rate
II. Rate at which RBI borrows from Commercial Banks 2. Repo rate
                                                                                                           3. Prime lending rate
Codes :
       I II
(A) 3 1
(B) 2 1
(C) 1 2
(D) 3 2

5. The MRTP Act, 1969 was abolished in
(A) 1991
(B) 2002
(C) 2006
(D) None of the above

6. Read the following statements :
(i) Financial statements are only interim reports.
(ii) Financial statements are prepared on the basis of realizable values.
(iii) The preparation of financial statements is not an ultimate aim.
(iv) Certain assumptions are necessary to prepare financial statements.
Which of the following combinations consists of all true statements ?
(A) (i), (ii) and (iii)
(B) (ii), (iii) and (iv)
(C) (i), (iii) and (iv)
(D) (i), (ii) and (iv)

7. Which of the following is not a subsidiary book ?
(A) Purchase Book
(B) Sales Book
(C) Bills Receivables Book
(D) Assets Book

8. Which of the following are the application of funds?
(i) Redemption of Preference share capital.
(ii) Payment of Dividend.
(iii) Increase in working capital.
(A) only (i) and (ii)
(B) only (ii) and (iii)
(C) only (i) and (iii)
(D) (i), (ii) and (iii)

9. Accounting concepts are based on
(A) Certain assumptions
(B) Certain facts and figures
(C) Certain accounting records
(D) Government guidelines

10. The main purpose of Cost Accounting is to
(A) assist management in decision making.
(B) maximise profits and minimise losses.
(C) comply norms issued by the Government of India from time to time.
(D) prepare cost accounts in line with the accounting standards.

11. The various degrees of price elasticity of demand can be shown on a single demand curve as per which one of the following ?
(A) Total outlay method
(B) Proportional method
(C) Arc method
(D) Geometrical method

12. Which one of the following is not correct about the price discrimination by a monopolist, who intends to
(A) maximise the sales/profit
(B) share the consumer’s surplus
(C) increase the welfare of masses
(D) reduce the welfare of masses

13. Returns to scale involve variations in the quantities of the various factors of production
(1) Simultaneously, and/or
(2) Proportionately
(A) Both (1) and (2) are correct
(B) (1) is correct and (2) is incorrect
(C) (1) is incorrect and (2) is correct
(D) Both (1) and (2) are incorrect.

14. The firm under perfect competition will be in short-run equilibrium when
(A) Rising marginal cost is equal to the minimum average cost
(B) Marginal revenue is equal to rising marginal cost.
(C) Average revenue is equal to average cost
(D) Marginal revenue is equal to the falling marginal cost.

15. Match the following :
                                List – I List – II
(i) Law of demand is fully applicable (1) Giffen goods
(ii) Law of demand is not applicable at all (2) Veblon goods
(iii)Law of demand is partly applicable (3) Normal goods
Codes :
(i) (ii) (iii)
(A) 1 2 3
(B) 2 3 1
(C) 3 1 2
(D) 2 1 3

16. Statement – I : The heading for columns and rows are called caption and stub respectively.
Statement – II : Sturge’s Rule is used to decide the nature of manifold classification
Which of the following is correct ?
(A) Both I and II are false.
(B) Both I and II are true.
(C) I is true and II is false.
(D) I is false and II is true.

17. F-test is used to test the significance of the differences between
(A) Co-efficient of correlation between two sample groups.
(B) Co-efficient of correlation among more than two sample groups.
(C) Averages between two sample groups.
(D) Averages of more than two sample groups.

18. Co-variance between two variables is
(A) The average of the product of deviations taken from their averages.
(B) A is further divided by the product of their standard deviations.
(C) A is further divided by the product of their arithmetic averages.
(D) None of the above

19. Statement – A : Standard error of the mean is the standard deviation of the sampling distribution of mean.
Statement – B : Simple random sampling is nonprobability sampling method.
Which of the following combination is correct ?
(A) Both A and B are true.
(B) Both A and B are false
(C) A is true and B is false.
(D) A is false and B is true.

20. Which of the following has RDBMS ?
(i) Access
(ii) Excel
(A) (i) and (ii)
(B) only (i)
(C) only (ii)
(D) None of the above

21. In which type of organization is ‘grapevine’ communication used ?
(A) Informal organization
(B) Formal organization
(C) Departmental organization
(D) Matrix organization

22. In management science “Grid” refers to
(A) Diverse managerial styles
(B) Co-ordination
(C) Communication
(D) Motivation

23. “SWOT” is used for
(A) Planning                      (B) Organising
(C) Motivating                   (D) Controlling

 24. Which of the following pairs is not matched ?
                                List – I List – II
(A) Frederick Herzburg – Scientific Management
(B) Henry Fayol – Modern Management
(C) Max Weber – Bureaucracy
(D) Philip Kotlar – Marketing

25. Which one of the following is not covered under corporate governance ?
(A) Corporate social responsibility
(B) Business ethics
(C) Role of independent directors
(D) Government monitoring

26. Market gridding means
(A) establishing and running a web marketing facility
(B) a method of survey of expert’s opinion.
(C) managing brands and developing brand equity
(D) an analytical technique which facilitates dividing a market into segments.

27. Trade Mark is :
(A) a name, term, symbol or design which is intended to identify the goods and services of a seller.
(B) a brand that has been given legal protection.
(C) giving protection to the product and adding to its aesthetics and sales appeal.
(D) providing written information about the product.

28. Which of the following is not a part of strategic planning ?
(A) Purposes and mission
(B) Objectives
(C) Choice of businesses
(D) Social responsibility

29. Attitude means
(A) Impulses, desires and considerations of the buyer, which induces him to purchase a product
(B) A sum total of the individuals’ faith and feelings towards a product.
(C) The customer turning to his environment/world of information around him.
(D) Creating some relentless in the mind of an individual.

30. Match the following :
                                List – I List – II
(a) Supply chain management (i) putting the product in the mind of the prospective buyer
(b) Product positioning (ii) the process of gathering, filtering and analysing information relating to the marketing environment.
(c) Marketing environment analysis (iii) improving the performance of dealers through sharpening of their sales skills and product knowledge
(d) Dealer training (iv) larger in scope than both physical and marketing logistics
Codes :
      (a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (iv) (i) (ii) (iii)
(C) (ii) (iv) (iii) (i)
(D) (iii) (iv) (i) (ii)

31. Over capitalization may not be as a result of which one of the following ?
(A) Promotion of a company with inflated assets
(B) Application of low capitalization rate
(C) Shortage of capital
(D) Liberal dividend policy

32. Which one of the following is not matched ?
                                List – I List – II
(a) Interest is a deductible expense (i) Cost of debt capital
(b) Realised yield approach (ii) Cost of equity capital
(c) Extended yield approach (iii) Retained earnings
(d) Dividend capitalization approach (iv) Cost of preference share capital
Codes :
(A) (a) and (i)
(B) (b) and (ii)
(C) (c) and (iii)
(D) (d) and (iv)

33. The rate of discount at which NPV of a project becomes zero is also known as
(A) Average Rate of Return
(B) Internal Rate of Return
(C) Alternate Rate of Return
(D) None of the above

34. The dividend irrelevance theorem to share valuation was propounded by
(A) James E. Walter
(B) Myron Gordon
(C) Modigliani and Miller
(D) None of the above

35. Assertion (A) : Management of working capital refers to the management of current assets and current liabilities.
Reason (R) : But the major thrust of course, is on the management of current assets ; because current liabilities arise in the context of current assets.
Codes :
(A) Both (A) and (R) are incorrect.
(B) (A) is correct and (R) is incorrect.
(C) Both (A) and (R) are correct.
(D) (A) is incorrect, but (R) is correct.

36. Business plans designed to achieve the organizational objectives is called
(A) Human Resource Planning
(B) Human Resource Forecasting
(C) Strategic Plan
(D) Corporate Development Plan

37. “360” degree method relates to
(A) Performance appraisal
(B) Organization climate
(C) Employees morale
(D) Retrenchment

38. Match the following :
                                List – I List – II
(a) Adam Smith (i) Subsistence Theory
(b) Karl Marx (ii) Wages Fund Theory
(c) John Davidson (iii) The Surplus Value Theory
(d) David Ricardo (iv) Bargaining Theory
Codes :
     (a) (b) (c) (d)
(A) (ii) (iii) (iv) (i)
(B) (i) (ii) (iii) (iv)
(C) (iv) (i) (ii) (iii)
(D) (iii) (iv) (i) (ii)

39. Assertions :
(i) High morale leads to high productivity.
(ii) High morale need not necessarily lead to high productivity.
(A) Both (i) and (ii) are correct.
(B) Both (i) and (ii) are incorrect.
(C) (i) is correct and (ii) is incorrect.
(D) (i) is incorrect and (ii) is correct.

40. Statements :
(i) Fringe benefits, now-a-days, are a significant component of “compensation”.
(ii) Under Piece-rate plan, employees are paid at a stipulated rate per hour of work done by them
(A) Both (i) and (ii) are correct.
(B) Both (i) and (ii) are incorrect.
(C) (i) is incorrect and (ii) is correct.
(D) (i) is correct and (ii) is incorrect.

41. Which one of the following is not an instrument of credit control in the banking system ?
(A) Open market operations
(B) Moral suasion
(C) Cash Reserve Ratio
(D) Tax rates

42. Match the following with their year of establishment :
(a) IDBI (i) 1982
(b) IFCI (ii) 1964
(c) NABARD (iii) 1948
(d) ICICI (iv) 1955
Codes :
     (a) (b) (c) (d)
(A) (iii) (i) (iv) (ii)
(B) (iv) (ii) (i) (iii)
(C) (ii) (iii) (i) (iv)
(D) (i) (iii) (iv) (ii)

43. Which of the following is not a function of a Rural Bank ?
(A) To accept deposits
(B) To waive loans
(C) To grant advances
(D) To supply inputs to farmers

44. From which date have all Banks started sharing their ATM free of cost for transactions ?
(A) January 1, 2009
(B) April 1, 2009
(C) July 1, 2009
(D) September 1, 2009

45. Which of the following is not the fund based business of commercial banks ?
(A) D.P. Operations
(B) Loans
(C) Deposits
(D) Discounting of Bills

46. Foreign Exchange and foreign currencies in India are governed by
(A) SCRA Act
(B) Banking Regulation Act
(C) FEMA Act
(D) SEBI Act

47. The balance of payments of a country on Current Account is equal to
(A) Balance of trade plus short term capital flows.
(B) Balance of trade plus net invisible exports.
(C) Balance of payments minus capital flows.
(D) Balance of invisible trade plus imports.

48. The following table shows cost per unit of production of two goods, wheat and cloth in two countries X and Y with no transportation cost and free trade :
                                X(Rs.)  Y(Rs.)
Wheat                  50          350
Cloth                     100         500
Which one of the following will take place ?
(A) No trade will take place.
(B) X will export wheat and import cloth.
(C) X will export cloth and import wheat.
(D) There is no enough information to comment.

49. A debit balance of payments occurs due to
(i) Low imports and high exports
(ii) High imports and low exports.
(A) Both (i) and (ii) are correct.
(B) Both (i) and (ii) are incorrect.
(C) Only (i) is correct.
(D) Only (ii) is correct.

50. Match the following economic institutions with the year of their establishment :
(a) World Bank (i) 1946
(b) International Finance Corporation (ii) 1956
(c) International Development Agency (iii) 1960
(d) Asian Development Bank (iv) 1966
Codes :
      (a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (i) (iii) (iv) (ii)
(C) (ii) (i) (iv) (iii)
(D) (iii) (i) (ii) (iv)