Friday, January 25, 2013

UGCNET - Commerce 08 (June' 2008) - Paper II

Note : This paper contains fifty (50) objective-type questions, each question carrying two (2) marks.  Attempt all of them.

1. The choice of distribution channel is affected by:
(A) Market consideration (B) Product consideration
(C) Middle man consideration (D) All of the above

2. Who is the custodian of monetary reserves in India ?

3. Who is the fiscal agent and advisor to government in monetary and financial matters in India ?

4. During the depression, it is advisable to :
(A) Lower Bank Rate and purchase securities in the market
(B) Increase Bank Rate and purchase securities in the open market
(C) Decrease Bank Rate and sell securities in the open market
(D) Increase Bank Rate and sell securities in the open market

5. Nationalization of banks aimed at all of the following except :
(A) Removal of control by a few
(B) Provision of control by a few
(C) Provision of adequate credit for agriculture, small industry and export units
(D) Encouragement of a new class of entrepreneur

6. The portion of total deposits of a commercial bank which it has to keep with RBI in the form of cash reserves is termed as:
(A) CRR (B) SLR (C) Bank Rate (D) Repo Rate

7. The emphasis of Human Resource Management is :
(A) Development (B) Punishment
(C) Promotion (D) Demotion

8. The purpose of Job evaluation is :
(A) Training (B) Promotion
(C) Wage fixation (D) Transfer

9. Induction means :
(A) Training (B) Orientation
(C) Introducing the employee (D) Certification

10. Labour productivity means :
(A) output is greater than input
(B) output is less than input
(C) output is equal to input
(D) output is negative

11. Which of the following relates to performance appraisal ?
(A) Task method (B) Price method
(C) M.B.O. (D) Link method

12. Capital structure represents :
(A) Ratio between different forms of capital
(B) All liabilities
(C) All assets
(D) Assets and liabilities

13. The item, closing inventory, is shown in the balance-sheet under :
(A) Fixed Assets (B) Current Assets
(C) Current Liabilities (D) Miscellaneous Expenditure

14. Trading on Equity means :
(A) Trading on arrears funds (B) Trading on borrowed funds
(C) Trading on family funds (D) Trading on friend’s funds

15. Marketing process involves :
(A) Time utility (B) Place utility
(C) Right utility (D) All of the above

16. Which of the following activities are covered under physical distribution ?
(A) Inventory (B) Packaging
(C) Transportation (D) All of the above

17. Which of the following step comes first in the selection process ?
(A) Test (B) Application blank
(C) Screening (D) Medical examination

18. M - M Theory in perfect market suggests that dividend payment :
(A) has a positive impact on the value of a firm
(B) has no impact on the value of a firm
(C) has a negative impact on the value of a firm
(D) has negligible impact on the firm

19. To manage . is the forecast and plan, to organise, to command, to co-ordinate and to control..  These are the words of :
(A) Koontz and O.Donnel (B) Henry Fayol
(C) F.W. Taylor (D) Peter F. Drucker

20. Chunk sampling is known as :
(A) Quota sampling (B) Convenience sampling
(C) Judgement sampling (D) Cluster sampling

21. The first electronic computer system was developed in :
(A) 1920 (B) 1930 (C) 1935 (D) 1940

22. When management pays attention to more important areas looked after by lower level of management, this is known as :
(A) MBO (B) Management by exception
(C) Unity of command (D) Critical path method

23. Policy making is an important part of the process of :
(A) Planning (B) Coordinating
(C) Organising (D) Motivating

24. Which of the management functions are closely related ?
(A) Planning and organization (B) Staffing and control
(C) Planning and control (D) Planning and staffing

25. .Grapevine. is a term used in relation to :
(A) formal
(B) informal communication
(C) both formal and informal communication
(D) this term is not used in relation to communication

26. The function of .staff. in an organisation is :
(A) take advice from the line
(B) advice the line
(C) hold authority and responsibility
(D) fix responsibility for performance of tasks in a definite manner upon certain individuals

27. Break-Even analysis deals with :
(A) relationship between cost and cost mix
(B) relationship between cost, output and profits
(C) relationship between cost and sales
(D) relationship between profit and sales

28. Dissolution of firm takes place :
(A) By the death or insolvency of any one partner
(B) The retirement of any one partner
(C) By the expiry of term
(D) By the insolvency of all but one partner

29. X Ltd. purchased land and building worth Rs. 28,80,000 and in lieu issued debentures of Rs. 100 each at a discount of 4%.  What are the number of debentures issued ?
(A) 28,800 (B) 30,000 (C) 32,000 (D) 34,000

30. X, Y and Z are partners in the ratio of  ½ : 2/5 : 1/10  what will be new ratio of the remaining partners if X retires :
(A) 2 : 1 (B) 4 : 1 (C) 5 : 1 (D) 3 : 1

31. Match items in List-I with items in List-II.
                List-I List-II
(a) Mega Marketing (i) Advertising
(b) Skimming Price (ii) Post Purchase Behaviour
(c) Promotion mix (iii) High Price
(d) Customer dissonance (iv) Philip Kotler
Codes :
       (a) (b) (c) (d)
(A) (iv) (iii) (i) (ii)
(B) (i) (ii) (iii) (iv)
(C) (iii) (i) (iv) (ii)
(D) (ii) (iv) (iii) (i)

32. Match the following :
List-I List-II
(a) Merchandise exports (i) Purchase of foreign goods
(b) Merchandise imports (ii) Sales of goods abroad
(c) Investment Income (iii) Largely caused by excess of imports over exports in merchandise
(d) Balance of Payments Deficits (iv) Dividends, interest etc. received from abroad
Codes :
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (ii) (iii) (iv) (i)
(C) (ii) (i) (iv) (iii)
(D) (iii) (iv) (ii) (i)

33. Match items in List-I with items in List-II :
                List-I List-II
(a) ABC analysis (i) Profitability
(b) ROI (ii) Inventory control
(c) Contribution Margin (iii) Project evaluation
(d) NPV (iv) B/E analysis
Codes :
     (a) (b) (c) (d)
(A) (iii) (ii) (i) (iv)
(B) (ii) (i) (iv) (iii)
(C) (iv) (ii) (i) (iii)
(D) (i) (iii) (ii) (iv)

34. Match the following :
                List-I List-II
(a) Going Concern Concept (i) The same accounting method used by a firm from one period to another
(b) Consistency (ii) Relates to the relative size or importance of an item or event
(c) Cost principle (iii) An inappropriate assumption for a firm undergoing bankruptcy
(d) Materiality (iv) The normal basis used to account for assets
Codes :
      (a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (iv) (iii) (ii) (i)
(C) (iii) (ii) (iv) (i)
(D) (iii) (i) (iv) (ii)

35. Match the following :
                                List-I List-II
(a) Smoothed Frequency Curve (i) To determine and portray the number of proportions of cases
(b) Histogram (ii) It is one dimensional
(c) Bar diagram (iii) It is two dimensional
(d) Ogive (iv) Can be drawn through various points of polygon
Codes :
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (ii) (iii) (iv) (i)
(C) (iii) (iv) (ii) (i)
(D) (iv) (iii) (ii) (i)

36. Match the following :
List-I List-II
(a) Merchandise Inventory (i) Prevents arbitrary changes from one accounting or measurement approach from one period to another
(b) Comparability Quality (ii) Inventory of a retailer of wholesaler
(c) Net Realisable Value (iii) Item acquired by purchase, growth or extraction of natural sources for further processing
(d) Raw Materials Inventory (iv) Estimated selling price of product in the ordinary course of business
Codes :
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (ii) (i) (iv) (iii)
(C) (iii) (ii) (i) (iv)
(D) (iv) (i) (ii) (iii)

37. Match the following :
List-I List-II
(a) Maxi-min principle (i) take minimum pay-off of each action and whichever is minimum is best action
(b) Mini-max principle (ii) take maximum pay-off of each action and whichever is maximum is best action
(c) Max-max principle (iii) take maximum pay-off of each action and whichever is minimum is best action
(d) Min-min principle (iv) take minimum pay-off of each action and whichever is maximum is best action
Codes :
     (a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (ii) (iii) (iv) (i)
(C) (iii) (iv) (i) (ii)
(D) (iv) (iii) (ii) (i)

38. The hypothesis testing consists of following steps :
(i) Establish a level of significance, prior to sampling
(ii) Defining the rejection or critical regions
(iii) State the hypothesis
(iv) Determination of a suitable test statistic
Which of the sequence is correct ?
(A) (ii), (iii), (iv), (i) (B) (iii), (i), (iv), (ii)
(C) (iii), (ii), (iv), (i) (D) (iv), (iii), (ii), (i)

39. Which of the following liabilities are taken into account for acid test ratio ?
(i) Trade Creditors
(ii) Bank Overdraft
(iii) Bills Payable
(iv) Outstanding Expenses
(v) Redeemable debentures
(A) (i), (ii), (iii), (iv) and (v) (B) (i), (ii), (iii) and (iv)
(C) (i) and (ii) only (D) (i), (iii) and (iv)

40. Statements :
(i) Employee development is more future oriented and more concerned with education than employee training.
(ii) Apprenticeship programme is one which is widely used off the job training.
(A) Both correct (B) Both incorrect
(C) (i) correct, (ii) incorrect (D) (i) incorrect, (ii) correct

41. For profit maximization of a firm we must have :
(i) MC=MR
(ii) Marginal cost curve cuts the average cost curve from below.
(A) Only (i) is correct (B) Only (ii) is correct
(C) Both incorrect (D) Both correct

42. 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 the employee.
(A) Both are correct (B) Both are incorrect
(C) (i) incorrect, (ii) correct (D) (i) correct, (ii) incorrect

43. Statements :
(i) The objective of Finance function is Wealth maximisation.
(ii) The objective of Finance function is Profit maximisation
(A) Both correct (B) Both incorrect
(C) (i) correct, (ii) incorrect (D) (i) incorrect, (ii) correct

44. Statements :
(i) Dividends can be paid only when there are profits.
(ii) Dividends can be paid when there are losses
(A) Both are correct (B) Both are incorrect
(C) (i) is incorrect, (ii) is correct (D) (i) is correct, (ii) is incorrect

45. Statements :
(i) The greater a firm’s degree of operating leverage, the more its EBIT will vary with respect to fluctuations in sales.
(ii) The greater a firms degree of operating leverage, the less its EBIT will vary with fluctuations in sales.
(A) Both correct (B) Both incorrect
(C) (i) correct, (ii) incorrect (D) (i) incorrect, (ii) correct

The Indian insurance industry has come a long way. From being providers of tax planning instruments to introducing concepts of retirement planning, wealth creation etc., customers are strengthening their ties with this industry every passing day. Today life insurance is among the fastest growing industries in India. Inspired by tremendous growth in the life insurance sector, many comparisons - product features, charge structures, returns etc - have been drawn between life insurance and other financial services, mostly mutual funds.  These comparisons resulted in emergence of ULIPs as a preferred product and in fact they display some similarities with MFs. The individual policy holders or retail customers by the product when he or she wants systematically provide towards a specific important goal.  They take money regularly out of their monthly or annual income to make contribution for their goal, children education, health etc.  Thus investment policies of life insurance companies are designed to enable policy holders meet their respective financial goals, while ensuring that the government is adequately funded for long term projects

46. Which of the following products are provided by Indian insurance industry ?
(A) Tax Planning (B) Wealth-Creation
(C) Retirement Planning (D) All of the above

47. Who is the majority investor in insurance companies ?
(A) Individual Policy-Holder or Retail Customer
(B) Corporate Sector
(C) Government Sector
(D) Semi-Government Sector

48. Which of the following is the primary objective of insurance companies to invest savings of customers ?
(A) Steady increments (B) Risky investments
(C) Short-term investments (D) Medium-term investments

49. Which type of customer-behaviour is observed for making investment in insurance companies ?
(A) One-time savings (B) Regular small-savings
(C) Savings on sudden-gain (D) Retirement-savings only

50. Insurance Companies and Mutual Funds both provides to customers :
(A) Insurance Policies only (B) ULIPs
(C) Bonds (D) Loans