Saturday, January 26, 2013

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

Paper II
1. The concept of Small Scale Industries (SSIs) was brought to force by the
(A) Industrial Policy Resolution, 1948
(B) Industrial Policy Resolution, 1956
(C) Industrial Policy Statement, 1977
(D) None of the above

2. Which combination of the following factors has driven globalisation in the recent past ?
I. Growth of multinational corporations.
II. Internationalisation of finance.
III. Increased international trade.
(A) I and II (B) I and III
(C) II and III (D) I, II and III

3. Assertion (A) : Privatisation process leads to change in management with change in ownership.
Reason (R) : Change in management is not a necessary condition for the process of privatisation.
Which one of the following is correct combination ?
Codes :
(A) Both (A) and (R) are correct.
(B) (A) is correct, but (R) is incorrect.
(C) (A) is incorrect, but (R) is correct.
(D) Both (A) and (R) are incorrect.

4. Match the following two lists of statements.
List – I List – II
I. When one company purchases another one. 1. Conglomeration merger
II. Merger between two companies having no common business areas. 2. Consolidation merger
III. Merger between two companies that sell the same products in different markets. 3. Purchase merger
IV. Two companies are bought and combined under new entity. 4. Market extension merger
Codes :
     I II III IV
(A) 1 2 3 4
(B) 2 3 1 4
(C) 3 1 4 2
(D) 3 4 1 2

5. In which of the industrial policies were the following major changes introduced?
– Liberalisation of licensed capacity.
– Relaxation of industrial licensing.
– Industrialisation of backward areas.
(A) Industrial Policy Resolution, 1956.
(B) Industrial Policy Statement, 1977.
(C) Industrial Policy of 1980.
(D) Industrial Policy of 1991.

6. Which of the following is not an Accounting concept?
(A) Matching concept
(B) Dual Aspect concept
(C) True and Fair concept
(D) Going concern concept

7. Deficiency/Surplus Account in liquidation of a company is called
(A) List – C (B) List – D
(C) List – G (D) List – H

8. Which of the following statement is not correct?
(A) P/V ratio can be improved by reducing fixed cost.
(B) Contribution is also known as Gross margin.
(C) P/V ratio can be improved by increasing the selling price.
(D) Margin of safety can be improved by reducing fixed cost.

9. In the context of Standard Costing; Basic Standard is established for
(A) Short period
(B) Current period
(C) Indefinite period
(D) Pre-defined period

10. Read the following statements:
(i) Marginal costing and Absorption costing are the same.
(ii) For decision making, absorption costing is more suitable than marginal costing.
(iii) Cost-volume-profit relationships also denote break-even point.
(iv) Marginal costing is based on the distinction between fixed and variable costs. Which of the following combinations gives true statements with regard to above?
(A) (i) & (ii)          (B) (ii) & (iii)
(C) (iii) & (iv)     (D) (iv) & (ii)

11. A consumer consuming two goods will be in equilibrium, when the marginal utilities from both goods are
(A) maximum possible positive
(B) minimum possible positive
(C) equal
(D) zero

12. Total production will be maximum when
(A) Marginal production is maximum.
(B) Average production is maximum.
(C) Marginal production is zero.
(D) Average production is equal to the marginal production.

13. Which one of the following is not matched properly?
                                                List – I List – II
I. High initial price to be lowered later 1. Product line pricing
II. Prices to be proportional to cost 2. Differential pricing
III. Prices to be increased for providing profit 3. Pioneer pricing
IV. Prices to be different in different markets 4. Incremental pricing
(A) I and 3           (B) II and 1
(C) III and 4         (D) IV and 2

14. As per indifference curve and price line, a consumer will not be in equilibrium when
(A) Ratios of marginal utilities and prices of the respective goods are equal.
(B) Ratio of marginal utilities of the two goods is equal to the ratio of their respective prices.
(C) The marginal rate of substitution is equal to the ratio of prices of the two goods.
(D) The marginal rate of substitution is decreasing.

15. Under kinked demand model, the demand curve for the firm’s product is drawn on the assumption that
(A) All rivals charge the same price which is charged by the oligopolist.
(B) All rivals charge a price independent of the price charged by the oligopolist.
(C) All rivals follow the oligopolist upto certain price but beyond that they do not.
(D) All oligopolists charge the price as independent sellers.

16. A graph of a cumulative frequency distribution is called
(A) Ogive
(B) Frequency polygon
(C) Pie diagram
(D) Histogram

17. Which of the following tests is used to test the significance of the coefficient of association?
(A) Z-test             (B) t-test
(C) c2-test           (D) F-test

18. The total area of a normal distribution between average value ± 1.96 of standard deviation is
(A) 95.45 % (B) 95 % (C) 99 % (D) 68.34 %

19. Which of the following is a relative measure of dispersion?
(A) Standard deviation
(B) Variance
(C) Co-efficient of variation
(D) None of the above

20. ERP includes (i) SAP, and/or (ii) Resource Planning.
(A) Both (i) and (ii)
(B) Only (i)
(C) Only (ii)
(D) None of the above

21. Which one of the following was not main contribution of F.W. Taylor?
(A) Scientific management
(B) Time and motion studies
(C) Differential wage plan
(D) Modern management

22. Match the items of List-I with items of List-II.
List – I List – II
I. Hygiene theory 1. Abraham H. Maslow
II. Theory of ‘X’ and ‘Y’ 2. Victor Vroom
III. Expectancy Theory 3. Fredrick Herzberg
                                            4. Doughlas Mcgregor
     I II III
(A) 3 4 2
(B) 1 4 2
(C) 3 2 4
(D) 1 2 4

23. Which of the following combinations consists of correct statements?
(i) Control and planning are interlinked.
(ii) Control is not meant for men, but for activities.
(iii) Control is a circular movement.
(A) (i) and (ii)
(B) (i) and (iii)
(C) (ii) and (iii)
(D) (i), (ii) and (iii)

24. Staffing includes
(i) Training (ii) Appraisal
(iii) Placement (iv) Directing
Which of the following is correct ?
(A) (i) and (iii)
(B) (i), (ii) and (iii)
(C) (ii) and (iii)
(D) (i), (ii), (iii) and (iv)

25. Assertion (A) : Management is a continuous process involving the integration of all functions.
Reason (R) : Managers first plan, then organise and finally perform the function of controlling.
Read the above statements and select the correct answer from the code below :
Codes :
(A) Both (A) and (R) are correct; and (R) is correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not a correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.

26. Exchange concept of marketing deals with
(A) Exchange of products between sellers and buyers covering distribution and price aspects.
(B) Mere appendage to production.
(C) Achieving marketing success through product attributes.
(D) Aggressively promote and push the products.

27. Who coined the expression “Marketing Mix” ?
(A) Henry Fayol
(B) James Culliton
(C) Peter Drucker
(D) Abraham Maslow

28. Road blocking advertisement refers to
(A) Advertising a product by blocking the road.
(B) Creating big blocks for advertising a product.
(C) Advertising a product on multiple TV channels at the same time.
(D) None of the above.

29. Match the following :
                                                List – I List – II
1. Market segmentation i. Pricing high of a new product initially.
2. Skimming price ii. Process of disaggregating a market into a number of submarkets.
3. Multilevel Marketing iii. Translation of the marketing plan into marketing performance.
4. Sales management iv. Modified version of direct marketing.
Codes :
     1 2 3 4
(A) ii i iv iii
(B) iii i ii iv
(C) i ii iii iv
(D) iv ii iii i

30. Which of the following buying process sequence is correct ?
1. Adoption 2. Legitimization 3. Attitude 4. Awareness
(A) 4, 3, 2, 1
(B) 2, 3, 4, 1
(C) 1, 2, 3, 4
(D) 3, 4, 2, 1

31. Discounted cash flow criteria for investment appraisal does not include
(A) Net present value
(B) Benefit-cost ratio
(C) Accounting rate of return
(D) Internal rate of return

32. Working capital represents the portion of current assets financed through long term funds. This indicates (1) net working capital and/or (2) gross working capital.
(A) (1) is correct
(B) (2) is correct
(C) Both (1) and (2) are correct
(D) Neither of the two is correct

33. Dividend policy of a company mainly concerns with
(i) dividend payout and/or
(ii) stability of dividend.
(A) Only (i) is correct.
(B) Only (ii) is correct.
(C) Both (i) and (ii) are correct.
(D) Both (i) and (ii) are incorrect.

34. Match the following :
                                                                List – I List – II
I. The presence of fixed cost in the cost structure of a firm. 1. Super leverage
II. The presence of fixed return funds in the capital structure of a firm. 2. Operating leverage
III. Impact of changes in sales on the earnings available to shareholders. 3. Financial leverage
Codes :
     I II III
(A) 1 2 3
(B) 2 3 1
(C) 3 2 1
(D) 1 3 2

35. Which one of the following is not used to estimate cost of equity capital ?
(A) External yield criterion
(B) Dividend plus growth rate
(C) Equity capitalisation approach
(D) Capital asset pricing model

36. Which of the following is not a Central Trade Union in India ?
(A) B.M.S. (B) I.L.O.

37. Sequence the following in which they are practised :
(i) Promotion
(ii) Performance appraisal
(iii) Recruitment
(iv) Training and Development
(A) (iii), (ii), (iv) (i)
(B) (iii), (ii), (i), (iv)
(C) (iii), (i), (iv), (ii)
(D) (iii), (iv), (ii), (i)

38. Which one of the following purposes is not served by performance evaluation ?
(A) Decisions about promotions, transfers and terminations.
(B) Centralisation and decentralisation of decision making authority.
(C) Identification of training and development needs.
(D) Criterion against which selection and development programmes are validated.

39. Who has introduced the “Seven Point Plan” for taking the best interview method ?
(A) Milton L. Blum
(B) F. E. Burt
(C) Prof. A. Rozar
(D) Filippo

40. The last stage in a grievance redressal procedure is handled by
(A) Union
(B) Voluntary Arbitrator
(C) H.R. Department
(D) Grievance Committee

41. The Commercial Banks in India are governed by
(A) Reserve Bank of India Act, 1934
(B) Indian Companie’s Act, 1956
(C) Indian Banking Regulation Act, 1949
(D) Securities and Exchange Board of India Act, 1992

42. Which of the following limits the power of credit creation by Commercial Banks ?
(A) Fiscal Policy
(B) Banking Laws
(C) Business Pessimism
(D) None of the above

43. Match the following with the years of establishment/nationalisation.
                                List – I List – II
(a) Reserve Bank of India i. 1975
(b) Nationalisation of 14 Major Commercial Banks ii. 1935
(c) Nationalisation of 6 Commercial Banks iii. 1969
(d) Regional Rural Banks iv. 1980
Codes :
(a) (b) (c) (d)
(A) i iii ii iv
(B) iii ii iv i
(C) iv iii i ii
(D) ii iii iv i

44. Capital adequacy norm helps to Banks
(i) For strengthening capital base of Banks.
(ii) For sanctioning more loans.
(A) Both (i) and (ii) are correct.
(B) Both (i) and (ii) are incorrect.
(C) (i) is correct, but (ii) I incorrect.
(D) (i) is incorrect, but (ii) is correct.

45. Which one of the following is the main objective of Unit Trust of India ?
(A) To mobilize the savings of high income groups.
(B) To mobilize the savings of low and high income groups.
(C) To mobilize the savings of corporates.
(D) To mobilize the savings of low and middle income groups.

46. Which of the following is the basic objective of the World Bank ?
(A) To provide social services
(B) To provide financial assistance
(C) To promote economic growth
(D) To eradicate poverty

47. Which of the following is not an International Financial Institution ?
(A) I.C.I.C.I. (B) I.M.F.
(C) I.D.A. (D) World Bank

48. In balance of payment accounts, all goods exported and imported are recorded in ________.
(A) Capital Account
(B) Visible Account
(C) Invisible Account
(D) Merchandise Account

49. The devaluation of currency of a country is done when ________.
(i) It has adverse balance of Payments.
(ii) It has favourable balance of payments.
(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 with the year of establishment :
List – I List – II
(a) World Trade Organisation i. 1993
(b) Uruguay Round Negotiation ii. 1995
(c) W.T.O. – Trade Policy Review Body iii. 1997
(d) The Patents (Amendment) Act. iv. 1999
Codes :
(a) (b) (c) (d)
(A) i iii iv ii
(B) i iv iii ii
(C) ii i iii iv
(D) iv ii i iii