Question Paper Bifurcation  – Commerce 2018 December

Question Paper Bifurcation of December 2018 Examination

1. Match the items of List I with the items of List II and choose the correct answer from the code given below.
   List I
   (a) Rival Firms
   (b) Technology
   (c) Improving Quality
   (d) Ethics in Business
   List II
   (i) External Environment
   (ii) Social and Cultural Environment
   (iii) Internal Environment
   (iv) Global Environment
   Code :
   1. (a) – (iv), (b) – (i), (c) – (ii), (d) – (iii)
   2. (a) – (iii), (b) – (i), (c) – (iv), (d) – (ii)
   3. (a) – (i), (b) – (ii), (c) – (iii), (d) – (iv)
   4. (a) – (ii), (b) – (iii), (c) – (iv), (d) – (i)
2. The Industrial Policy, 1956 has been prompted by which combination of the following development ?
   (i) Adoption of the Constitution of India.
   (ii) Implementation of Economic Planning.
   (iii) Acceleration of Economic Growth and Industrialization.
   (iv) Availability of Sufficient Funds for Investment in Public Sector.
   Choose the correct answer from the code given below:
   Code:
   1. Only (ii) and (iv)
   2. Only (i), (ii) and (iv)
   3. Only (ii),(iii) and (iv)
   4. Only (i) and (ii)
3. Choose the correct code for the following statements being correct or incorrect.
   Statement I: Intellectual Property (IP) is a category of property that includes intangible creations of the human intellect.
   Statement II : IPR does not include trade secrets and moral rights.
   Code:
   1. Statement II is correct, but I is incorrect.
   2. Both the Statement I and II are correct.
   3. Both the Statement I and II are incorrect.
   4. Statement I is correct, but II is incorrect.
4. Second generation reforms in our country do not comprise of which one of the following ?
   1. Clean environment
   2. Growing Indian transnational corporations
   3. Exploiting the knowledge based global economy
   4. Population control measures
5. Indicate the most popular route of privatisation adopted by the Government of India in recent decades.
   1. Management-Employee Buyout
   2. Cross Holdings
   3. Strategic sale
   4. Spontaneous Privatization
6. For the following two statements regarding infrastructural services in the country, choose the correct code for the statements being correct or incorrect.
   Statement I : Most infrastructure services are provided by public monopolies which generally suffer with severe problems like lack of accountability, low productivity, poor financial performance and over-employment.
   Statement II : There is a need now to induce more private sector investment and participation in provision of social overheads as it may encourage better risk sharing, accountability, monitoring and management of infrastructure sector.
   Code :
   1. Both I and II are correct.
   2. I is correct, but II is incorrect
   3. Both I and II are incorrect.
   4. I is incorrect, but II is correct.
7. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code given below.
   Assertion (A) : Consumers need to be given legal protection against certain trade practices and business methods.
   Reason (R) : Protection as per market forces and ‘Caveat Emptor’ is not enough as perfectly competitive market is an economist’s dream and consumer sovereignty is a myth.
   1. Both (A) and (R) are correct but (R) is not the right explanation of (A)
   2. Both (A) and (R) are correct but (R) is the right explanation of (A)
   3. (A) is incorrect but (R) is correct.
   4. (A) is correct but (R) is incorrect.
8. Which of the following are included in the international liquidity ? Indicate the correct code.
   (i) Foreign exchange reserve
   (ii) Borrowing capacity of the various countries
   (iii) Gold reserve
   Choose the correct answer from the code given below :
   Code:
   1. (i) and (iii)
   2. (i) and (ii)
   3. (ii) and (iii)
   4. (i), (ii) and (iii)
9. The companies having business in a large number of countries around the world at present are called
   1. Transnational Corporations (TNCs)
   2. Global Corporations (GCs)
   3. Multinational Enterprises (MNEs)
   4. Multinational Corporations (MNCs)
10. Match the items of List I with the items of List II and choose the correct answer from the code given below.
    List I
    (a) Direct investment overseas aimed at manufacturing products not manufactured by the firm in the home country.
    (b) Direct investment in a foreign country aimed to sell the output of the firm’s domestic production
    (c) Direct investment overseas aimed at providing inputs from the firms production process in the home country.
    (d) Foreign firms investing overseas and taking control over foreign assets.
    List II
    (i) Inward FDI
    (ii) Backward Vertical FDI
    (iii) Conglomerate FDI
    (iv) Forward Verticle FDI
    Code :
    1. (a) – (iii), (b) – (ii), (c) – (i), (d) – (iv)
    2. (a) – (i), (b) – (iv), (c) – (ii), (d) – (iii)
    3. (a) – (iii), (b) – (iv), (c) – (ii), (d) – (i)
    4. (a) – (iv), (b) – (iii), (c) – (ii), (d) – (i)
11. Which one of the following is the main government agency responsible for development and monitoring international trade in India ?
    1. Federation of Indian Export Organisations
    2. Indian Institute of Foreign Trade
    3. Department of Commerce
    4. Export Promotion Council
12. The theory suggesting that the patterns of international trade are determined by factor endowment rather than productivity was propounded by which on of the following ?
    1. Michael Porter
    2. David Recardo
    3. Heckscher and Bertil Ohlin
    4. Adam Smith
13. Which one of the following is not the basic function of WTO ?
    1. To facilitate the expansion and balanced growth of international trade
    2. To settle differences and disputes among its member countries
    3. To carry out periodic reviews of the trade policies of its member countries
    4. To facilitate the implementation, administration and operation of trade agreements
14. In which one of the following modes of entry into foreign market are risk and profit potential the highest ?
    1. Joint ventures
    2. Indirect exporting
    3. Direct exporting
    4. Direct investment
15. Who among the following is not an observer country of the SAARC ?
    1. Canada
    2. Iran
    3. USA
    4. China
16. Match the items of List I with the items of List II and choose the correct answer from the code given below.
    List I
    (a) Balance of trade
    (b) Current account
    (c) Balance of payments
    (d) Capital account
    List II
    (i) Imports and exports of goods and services and unilateral transfer of goods and services
    (ii) Transactions leading to changes in the financial assets and liabilities of a country
    (iii) All economic transactions between a country’s residents and residents of other countries
    (iv) Value of exports and imports of a country
    Code :
    1. (a) – (i), (b) – (ii), (c) – (iii), (d) – (iv)
    2. (a) – (iv), (b) – (iii), (c) – (ii), (d) – (i)
    3. (a) – (iii), (b) – (ii), (c) – (iv), (d) – (i)
    4. (a) – (iv), (b) – (i), (c) – (iii), (d) – (ii)
17. Choose the correct code for the following statements being correct or incorrect.
    Statement I : FX Spot is an agreement between two parties to buy one currency against selling another currency at an agreed price for settlement on the spot date.
    Statement II : ;The date of maturity of a forward contract is more than two business days in future.
    Code :
    1. Statement II is correct, but I is incorrect.
    2. Both the statements I and II are correct.
    3. Statement I is correct, but II is incorrect.
    4. Both the statements I and II are incorrect.
18. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code given below.
    Assertion (A) : The multilateral trading system is an attempt by governments to make the business environment stable and predictable.
    Reason (R) : Promising not to raise trade barriers can be as important as lowering one, because the promise gives businesses a clearer view of their future market opportunities.
    Code :
    1. Both (A) and (R) are correct but (R) is the right explanation of (A).
    2. Both (A) and (R) are incorrect.
    3. (A) is correct but (R) is incorrect.
    4. Both (A) and (R) are correct but (R) is not the right explanation of (A).
19. Foreign investment can be made through which of the following routes ?
    (i) Foreign Direct Investment (FDI)
    (ii) Foreign Portfolio Investment (FPI)
    (iii) Private Equity Investment (PEI)
    (iv) Foreign Venture Capital Investors (FVCI)
    Choose the correct answer from the code given below :
    Code :
    1. (i),(iii) and (iv)
    2. (i),(ii),(iii) and (iv)
    3. (i) and (iv)
    4. (i),(ii) and (iv)
20. Bretton Woods Conference resulted into the establishment of which of the following ?
    1. IMF and IBRD
    2. IDA and ADB
    3. IBRD and IFC
    4. IMF and IDA
21. ‘Finance for exporting companies’ as part of major programmes of the Exim Bank of India does not include
    1. Overseas investment finance
    2. Post-shipment credit
    3. Term loans
    4. Working capital

Unit 2: Accounting and Auditing – 14 Questions

1. Which one of the following statements is/are true?
   (i) Tax-shield on depreciation and interest is an important variable both for the lessor and the lessee.
   (ii) Lease transactions in India are governed by the Lease Act.
   (iii) A lessee should evaluate the lease options against the buying option.
   (iv) As per As-19, financial lease is shown in the balance sheet of the lessee as an asset.Choose the correct answer from the code given below:
   Code :
   1. (i) and (iv)
   2. (ii), (iii) and (iv)
   3. Only (ii)
   4. (i), (iii) and (iv)
2. Merger of two companies under the Board for Industrial and Financial Reconstruction (BIFR) supervision is known as
   1. Offer for sale
   2. Reverse merger
   3. Negotiated merger
   4. Arranged merger
3. Match the items of List I with the items of List II and choose the correct answer from the code given below.
   List I
   (a) AS-1
   (b) AS-3
   (c) AS-10
   (d) AS-19
   List II
   (i) Accounting for fixed assets
   (ii) Disclosure of accounting policies
   (iii) Leases and its accounting
   (iv) Cash flow statements
   Code :
   1. (a) – (iii), (b) – (ii), (c) – (i), (d) – (iv)
   2. (a) – (iii), (b) – (i), (c) – (iv), (d) – (ii)
   3. (a) – (i), (b) – (ii), (c) – (iii), (d) – (iv)
   4. (a) – (iii), (b) – (iv), (c) – (ii), (d) – (i)
4. Choose the correct code for the following statements being correct or incorrect.
   Statement I : Punctuality and team spirit among employees of an organisation has great contribution in enhancing profits of the business but they do not appear as asset in the balance sheet.Statement II : Financial statements do not reflect the correct financial position of a business.
   Code :
   1. Both the Statement I and II are correct.
   2. Both the Statement I and II are incorrect.
   3. Statement I is correct, but II is incorrect.
   4. Statement I is incorrect, but II is correct.
5. A and B are partners in a firm sharing profits in the ratio of 3:2. They admit X as a partner for 1/3 share in profits of the firm. The new profit sharing ration of A,B and X is1. 3:2:1
   2. 3:2:3
   3. 6:4:5   
   4. 3:2:2
6. Which one of the following statements is not true ?
   1. Conversion of debentures into preference shares will decrease debt-equity ratio.
   2. Higher operating ratio indicates higher profits.
   3. Cost of sales is a better numerator than sales while calculating stock turnover.
   4. Long-term liabilities due for payment within a year should be treated as current liabilities.
7. X Ltd. Forfeited 40 shares of Rs.10 each and on which Rs.4 per share were paid. If the forfeited shares are reissued as Rs. 8 per share paid up, what is the minimum price the company must charge?
   1. Rs. 4 per share
   2. Rs. 8 per share
   3. Rs. 10 per share
   4. Rs. 2per share
8. Which of the following is not a method of preparation of cash budget ?
   1. Proforma balance sheet method
   2. Receipts and Payments method
   3. Adjusted Net Income method
   4. Cash Cycle method
9. A firm has inventory turnover of 3 and cost of goods sold is `2,70,000. With better inventory management, the inventory turnover is increased to 5. This would result in1. Decrease in inventory by Rs. 90,000
   2. Decrease in inventory by  Rs. 36,000
   3. Decrease in inventory by Rs.20,000
   4. Decrease in inventory by Rs. 54,000
10. Which one of the following statements is not true?
    1. Depreciation is a source of funds.
    2. Major source of working capital in the long run, is profits from operations
    3. Any transaction that increases working capital is a source of funds.
    4. Profits earned from non-operating activities is added to net profit while calculating profits from operations
11. A company proposes to introduce a new product in the market. The company wants to maintain P/V Ratio at 25%. If variable cost of the product is Rs. 300, what will be the selling price ?
    1. Rs. 400
    2. Rs. 100
    3. Rs. 300
    4. Rs. 200

There are two wrong question in Accounting & Auditing Unit

Unit 3 : Business Economics – 7 Questions

1. Match the items of List I with the items of List II and choose the correct answer from the code given below.
   List I
   (a) Income elasticity less than unity
   (b) Cross elasticity less than unity
   (c) Cross elasticity less than zero
   (d) Income elasticity less than zero
   List II
   (i) Competitive goods
   (ii) Inferior goods
   (iii) Superior goods
   (iv) Complementary goods
   Code :
   1. (a) – (i), (b) – (ii), (c) – (iii), (d) – (iv)
   2. (a) – (iii), (b) – (i), (c) – (iv), (d) – (ii)
   3. (a) – (iv), (b) – (iii), (c) – (i), (d) – (ii)
   4. (a) – (iv), (b) – (i), (c) – (ii), (d) – (iii)
2. The inverse relationship between the variation in the price and the variation in the quantity demanded is not due to
   1. Price effect
   2. Entry and exit of buyers
   3. Law of substitution
   4. Gossen’s laws of consumption
3. Cost plus pricing is considered appropriate for which combination of the following ?
   (i) Product Tailoring
   (ii) Public Utility Pricing
   (iii) Refusal pricing
   (iv) Monopoly PricingChoose the correct answer from the code given below :
   Code :
   1. Only (i) and (ii)
   2. Only (i), (ii) and (iii)
   3. Only (iii) and (iv)
   4. Only (ii), (ii) and (iv)
4. Production function is based on which combination of the main characteristics of the inputs from the following :
   (i) Substitutability
   (ii) Complementarity
   (iii) Flexibility
   (iv) Specificity
   Choose the correct answer from the code given below :
   Code :
   1. Only (i), (ii) and (iv)
   2. Only (i) and (ii)
   3. Only (ii), (iii) and (iv)
   4. Only (iii) and (iv)
5. Cardinal utility analysis of consumer’s behaviour is based on which combination of the following assumptions :(i) Utility is measurable in terms of cardinal numbers.
   (ii) Constancy of the marginal utility of money
   (iii) Utilities of different goods are interdependent.
   (iv) Gossen’s first law of consumption.
   Choose the correct answer from the code given below :
   Code :
   1. Only (iii) and (iv)
   2. Only (i), (ii) and (iv)
   3. Only (i) and (ii)
   4. Only (ii), (iii) and (iv)
6. The monopoly involves a social cost mainly but to its emphasis on which one of the following ?1. Earning net profit in all possible situations.
   2. Attempting to stall entry of other firms in the market.
   3. Lower output at a higher cost in a normal profit situation
   4. Charging different prices from different categories of buyers of the same product.
7. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code given below.
   Assertion (A) : There exists excess capacity of the production for the firms if these incur losses.
   Reason (R) : Their production level has to remain below their economic capacity level.
   Code :
   1. Both (A) and (R) are correct but (R) is not the right explanation of (A).
   2. (A) is incorrect but (R) is correct.
   3. Both (A) and (R) are correct and (R) is the right explanation of (A).
   4. (A) is correct but (R) is incorrect.

Unit 4 : Business Finance – 8 Questions

1. Which of the following sources of finance has an implicit cost of capital ?
   1. Preference share capital
   2. Debentures
   3. Retained earnings
   4. Equity share capital
2. Which of the following variables is not known in Internal Rate of Return method of capital budgeting ?
   1. Amount of cash outflows
   2. Discount rate
   3. Amount of cash inflows
   4. Life of the project
3. Which of the following statements is/are false ?
   (i) Capital profits can never be distributed as dividends to the shareholders.
   (ii) Dividends are paid out of profits and, therefore, do not affect the liquidity position of the firm.
   (iii) Every company should follow the policy of low dividend payment.
   (iv) Walter’s model suggests that dividend payment does not affect the market price of the share.
   Choose the correct answer from the code given below :
   Code :
   1. (i), (ii) and (iii)
   2. (i), (ii), (iii) and (iv)
   3. (ii) and (iv)
   4. (ii), (iii) and (iv)
4. Combined leverage can be used to measure the relationship between
   1. PAT and EPS
   2. Sales and EBIT
   3. EBIT and EPS
   4. Sales and EPS
5. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code given below.
   Assertion (A) : A low debt-equity ratio is generally recommended for a newly started business.
   Reason (R) : During the initial years of the business, debt servicing will prove to be less burdensome.
   Code:
   1. Both (A) and (R) are correct but (R) is not the right explanation of (A).
   2. (A) is not correct but (R) is correct.
   3. Both (A) and (R) are correct and (R) is the right explanation of (A).
   4. (A) is correct but (R) is not correct.
6. Sales of a firm are Rs. 40 lacs; variable costs Rs.10 lacs; fixed costs Rs. 15 lacs; interest Rs. 5 lacs. Combined leverage of the firm will be
   1. 3
   2. 2
   3. 2.5
   4. 8
7. Choose the correct code for the following statements being correct or incorrect.
   Statement I : When the two securities returns are perfectly positively correlated, the risk of their portfolio is just a weighted average of the individual risks of the securities. In such case, diversification does not provide risk reduction but only risk averaging.
   Statement II : Total risk of a portfolio of two risk securities can be completely eliminated when their returns are perfectly negatively correlated and their proportionate holdings in the portfolio are inversely related to the relative individual risks of the securities.
   Code :
   1. Statement I is correct, but II is incorrect.
   2. Both the Statement I and II are correct.
   3. Statement II is correct, but I is incorrect.
   4. Both the Statements I and II are incorrect.
8. Choose the correct code for the following statements being correct or incorrect.
   Statement I : An option which gives its holder the privilege of selling to other party a fixed amount of some stock at a stated price on or before a predetermined date is known as call option.
   Statement II : In an option, the holder has the privilege of purchasing from other party a fixed amount of some stock at a stated price on or before a predetermined date is known as put option.
   Code :
   1. Statement I is correct, but II is incorrect.
   2. Both the statements I and II are correct.
   3. Statement II is correct, but I is incorrect.
   4. Both the statements I and II are incorrect.

Unit 5 : Business Statistics and Research Methods – 7 Questions

1. Which one of the following is not the advantage of database management system ?1. Centralized control
   2. Improved data integrity
   3. Shared data
   4. High acquisition costs
2. Choose the correct code for the following statements being correct or incorrect.
   Statement I : The geometric mean of the two regression coefficients of X and Y variables given the value of the coefficient of correlation.
   Statement II : If the population distribution is not normal and a sampling distribution of mean is prepared by taking small sized samples, the sampling distribution of mean is not normal.
   Code :
   1. Statement II is correct, but I is incorrect.
   2. Both the statement I and II are incorrect.
   3. Statement I is correct, but II is incorrect.
   4. Both the statements I and II are correct.
3. Choose the correct code for the following statements being correct or incorrect.
   Statement I : If the value of β2, i.e,       of a distribution gives the value more than 3, its curve is platykurtic.
   Statement II : In a moderately asymmetrical distribution, the standard deviation is 1.25 times of mean deviation.
   Code :
   1. Statement I is correct, but II is incorrect.
   2. Both the statement I and II are correct.
   3. Both the statements I and II are incorrect.
   4. Statement II is correct, but I is incorrect.
4. If a perpendicular of X-axis from the point of intersection of both ‘less than’ and ‘more than’ frequency curves is drawn curves is drawn, it gives the value of
   1. Median
   2. Third quartile
   3. Mode
   4. Arithmetic mean
5. Which one of the following is not the correct property of normal distribution?
   1. Uni-modal distribution
   2. Equality of central values (Mean, Mode and Median)
   3. Continuous distribution
   4. Standard deviation is the sole parameter of the distribution
6. The probable error of the coefficient of correlation (r) is calculated by which one of the following formulae ?  (1) 0.6745               
   (2) 0.6745
   (3) 0.6745
   (4) 0.6745
7. Which of the following statements relating to the sampling theory are correct ?
   (i) The values of the statistical measures based on the sampled units are called values of statistic.
   (ii) In the simple random sampling technique, the element of the population and the unit of the sample are different.
   (iii) Snow-ball sampling technique is a probability based sampling technique.
   (iv) The ‘law of statistical regularity’ and the ‘law of inertia of large numbers’ are the main bases of the sample to become representative of the population.
   Choose the correct answer from the code given below :
   Code:
   1. (ii) and (iii)
   2. (i), (ii) and (iii)
   3. (ii), (iii) and (iv)
   4. (i) and (iv)

Unit 6 : Business Management and Human Resource Management – 18 Questions

1. Choose the correct code for the following statements being correct or incorrect.
   Statement I : An identifiable group of people contributing their efforts towards attainment of goals is called organization.
   Statement II : In its broadest sense, organization refers to the relationship between the various factors present in a given endeavour.
   Code :
   1. Statement I is correct, but II is incorrect.
   2. Both the Statements I and II are incorrect
   3. Statement II is correct, but I is incorrect.
   4. Both the Statement I and II are correct.
2. Match the items of List I with the items of List II and choose the correct answer from the code given below.
   List I
   (Propounder of Theory)
   (a) Dr. Willian Ouchi
   (b) Douglas McGregor
   (c) Frederick Herzberg
   (d) A.H.Maslow
   List II
   (Theory of Motivation)
   (i) X Theory
   (ii) Need Hierarchy Theory
   (iii) Z Theory
   (iv) Hygiene Theory
   Code :
   1. (a) – (iii), (b) – (i), (c) – (iv), (d) – (ii)
   2. (a) – (iv), (b) – (i), (c) – (iii), (d) – (ii)
   3. (a) – (ii), (b) – (iii), (c) – (iv), (d) – (i)
   4. (a) – (ii), (b) – (i), (c) – (iii), (d) – (iv)
3. Corporations are controlled and directed by which one of the following ?
   1. Corporate codes
   2. Corporate mechanism
   3. Corporate ethics
   4. Corporate governance
4. Which one among the following is the oldest form of organization ?
   1. Committee of Organization
   2. Line Organization
   3. Functional Organization
   4. Project Organization

Human Resources Management

1. Which one of the following is not an advantage of external recruitment ?
   1. Scope for resentment, jealousies and heartburn are avoided
   2. Good performance is rewarded
   3. Compliance with reservation policy becomes easy
   4. Benefits of new skills, new talents and new experiences to organisations are available
2. For performance assessment of employees, “helping to meet legal requirements” is the application of which one of the following ?1. Developmental purpose
   2. Organisational maintenance purpose
   3. Administration purpose
   4. Documentation purpose
3. Choose the correct code for the following statements being correct or incorrect.Statement I : Thousands of employees die everyday in factories due to accidents.
   Statement II : To make an accident-free plant adds to cost and decreases productivity.
   Codes :
   1. Both the statements I and II are incorrect.
   2. Statement I is correct, but II is incorrect.
   3. Both the statements I and II are correct.
   4. Statement II is correct, but I is incorrect.
4. Match the items of List I with the items of List II and choose the correct answer from the code given below.
   List I
   (a) Behaviour referent
   (b) focus of attention for interventions
   (c) Conflict handling
   (d) Job categories and grades
   List II
   (i) Wide ranging cultural, structural and personnel strategies
   (ii) Manage climate and culture
   (iii) Few
   (iv) Values/mission
   Code :
   1. (a) – (iv), (b) – (i), (c) – (ii), (d) – (iii)
   2. (a) – (iii), (b) – (i), (c) – (ii), (d) – (iv)
   3. (a) – (i), (b) – (ii), (c) – (iv), (d) – (iii)
   4. (a) – (iv), (b) – (ii), (c) – (i), (d) – (iii)
5. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code given below.
   Assertion (A) : Training aids in encouraging and achieving and achieving self-development and self-confidence.
   Reason (R) : It helps a person handle stress, tension, frustration and conflict.
   Code:
   1. Both (A) and (R) are correct and (R) is the right explanation of (A).
   2. Both (A) and (R) are correct and (R) is the not the right explanation of (A).
   3. (A) is correct but (R) is not correct.
   4. Both (A) and (R) are incorrect.
6. In which one of the following forms of worker’s participation in management is the role of the workers council not just advisory but the management is under a moral obligation to acknowledge, accept and implement the unanimous decision of the council?
   1. Associative Participation
   2. Administrative Particpation
   3. Decisive Participation
   4. Consultative Participation
7. Match the items of List I with the items of List II and choose the correct answer from the code given below.
   List I (Types of Interview)
   (a) Structured
   (b) Unstructured
   (c) Mixed
   (d) Behavioural
   List II (Usual Application)Code :
   (i) A realistic approach that yields comparable answers plus indepth insights
   (ii) Useful to understand applicant’s reasoning and analytical abilities under modest stress
   (iii) Useful for valid results, especially when dealing with large number of applicants
   (iv) Useful when the interviewer tries to probe personal details of the candidate to analyse why they are not fit for the job
   1. (a) – (iii), (b) – (i), (c) – (ii), (d) – (iv)
   2. (a) – (iii), (b) – (iv), (c) – (i), (d) – (ii)
   3. (a) – (i), (b) – (iv), (c) – (ii), (d) – (iii)
   4. (a) – (iv), (b) – (ii), (c) – (i), (d) – (iii)
8. Which one of the following items is not a part of job specification ?
   1. Emotional characteristics
   2. Location
   3. Initiative
   4. Judgement
9. Arrange the following stages of staffing in correct sequences and indicate the code of correct sequence.
   (i) Performance appraisal
   (ii) Recruitment
   (iii) Transfers
   (iv) Selection
   (v) Induction and orientation
   Choose the correct answer from the code given below :
   Code :
   1. (ii),(iv),(v),(i),(iii)
   2. (i),(ii),(iv),(v),(iii)
   3. (ii),(i),(iv),(v),(iii)
   4. (iv),(ii),(v),(iii),(i)
10. “Everyone benefits when the focus is on common interest and promotion of harmony” is the underlying assumption of which one of the following approaches to industrial relations ?
    1. Human Relations approach
    2. Marxist approach
    3. Pluralistic approach
    4. Unitary approach
11. Which one of the following initiatives is not the strategy for managing shortage of employees in an organisation?
    1. Hire temporary employees
    2. Offer incentives to postpone retirement
    3. Attempt to reduce turnover
    4. Employee training
12. According to Donald Kirkpatrick, training programmes can be evaluated at four levels. Indicate the code of correct sequence from the following :
    (i) Result
    (ii) Reaction
    (iii) Learning
    (iv) Behaviour
    Choose the correct answer from the code given below :
    Code :
    1. (ii),(iii),(iv),(i)
    2. (i),(ii),(iii),(iv)
    3. (iv),(iii),(ii),(i)
    4. (iii),(iv),(i),(ii)
13. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code given below.
    Assertion (A) : Technological change and skill requirements have been made a subject of investigation in as organization.
    Reason (R) : The neo-classical economic theory stated that technological changes require a broader variety of skills and higher average skills from the workers.
    Code :
    1. Both (A) and (R) are correct.
    2. Both (A) and (R) are correct but (R) is the right explanation of (A).
    3. Both (A) and (R) are incorrect.
    4. Both (A) and (R) are correct but (R) is not the right explanation of (A).
14. Match the items of List I with the items of List II and choose the correct answer from the code given below.
    List I
    (a) Job context
    (b) Job-related tangibles and intangibles
    (c) Work activities
    (d) Work performances
    List II
    (i) Procedure used
    Code :
    (i) Procedure used
    (ii) Work schedule
    (iii) Work standards
    (iv) Services rendered
    1. (a) – (i), (b) – (iv), (c) – (ii), (d) – (iii)
    2. (a) – (ii), (b) – (iv), (c) – (i), (d) – (iii)
    3. (a) – (iv), (b) – (iii), (c) – (i), (d) – (ii)
    4. (a) – (iii), (b) – (iv), (c) – (ii), (d) – (i)

Unit 7 : Banking and Financial Institutions – 7 Questions

1. Banking Ombudsman Scheme was introduced by RBI with effect from
   1. 2001
   2. 1998
   3. 1995
   4. 2005
2. Which one of the following is not the fund based business of commercial banks ?
   1. Overdraft facility
   2. Acceptance of deposits
   3. Issuance of Letters of Credit
   4. RTGS/NEFT transactions
3. Match the items of List I with the items of List II and choose the correct answer from the code given below.
   List I
   (a) NPA
   (b) SLR
   (c) Repo Rate
   (d) CRR
   List II
   (i) The percentage of deposits to be kept with RBI in the form of cash.
   (ii) The rate at which RBI lends mo9ney to9 commercial banks.
   (iii) Loans and advances not paid for more than 90 days.
   (iv) The percentage of net demand and time liabilities to be kept in the form of liquid assets.
   Code :
   1. (a) – (iii), (b) – (iv), (c) – (i), (d) – (ii)
   2. (a) – (ii), (b) – (iii), (c) – (iv), (d) – (i)
   3. (a) – (iii), (b) – (iv), (c) – (ii), (d) – (i)
   4. (a) – (iii), (b) – (ii), (c) – (iv), (d) – (i)
4. Which of the following is not the function of the reserve Bank of India ?
   1. Controller of credit
   2. Accepting deposits and advancing loans to public
   3. Custodian of Cash Reserves of Commercial Banks
   4. Issue of Bank notes
5. Banks are required to classify Non-Performing Assents into
   1. Doubtful assets, and bad debts
   2. Doubtful assets, bad debts and loss assets
   3. Sub-standard assets, doubtful assets, and loss assets
   4. Standard assets, and sub-standard assets
6. “Skimming” in e-banking is a method of
   1. Transferring cash from one account to another account.
   2. Converting Debit Card into Credit Card.
   3. Stealing credit card information.
   4. Intimating the customer about his heavy withdrawals.
7. When RBI reduces CRR, it results into
   1. Decrease in lendable resources
   2. Decrease in deposits
   3. Increase in deposits
   4. Increase in lendable resources
8. Which one of the following statements is correct ?
   1. SEBI is constituted from amongst the directors of various stock exchanges
   2. One of the objectives of setting up SEBI is to protect the interests of investors.
   3. The purpose of issuing different types of rules and regulations by SEBI is to bring monetary gains to investors.
   4. SEBI has been constituted under the Securities (Contract and Regulation) Act, 1956.

Unit 8 : Marketing Management – 13 Questions

1. Choose the correct code for the following statements being correct or incorrect.
   Statement I : A well-chosen marketing channel must be aligned to company’s marketing strategy with respect to segmentation, targeting and positioning.
   Statement II : Marketing channels are set of interdependent organizations participating in the process of making the product available for the use of consumption.
   Code :
   1. Statement II is correct, but I is incorrect.
   2. Both the Statement I and II are incorrect.
   3. Both the Statement I and II are correct.
   4. Statement I is correct, but II is incorrect.
2. Which of the following modes is not an example of Direct and Database marketing communication ?
   1. Social media marketing
   2. Catalogues
   3. Telemarketing
   4. Mailings
3. Which among the following is not an internal factor of pricing decision ?
   1. Price elasticity as per sales of product
   2. Consumer behaviour for given product
   3. Position of product in product cycle
   4. Consumer’s expectation from company by past pricing.
4. Advertising method in which a commercial is broadcast simultaneously on several radio stations and/or television channel is known as
   1. Road side
   2. Intensified campaign
   3. Road block
   4. Exclusive drive
5. Given below are two statements, one labelled as Assertion (A) and the otehr labelled as Reason (R). Read the statements and choose the correct answer using the code given below.
   Assertion (A) : Database assist in market segmentation, especially behavioural segmentation such as developing loyalty segments.
   Reason (R) : Customer Relationship Management (CRM) databases have become an asset for the analysis of customer behaviour.
   Code :
   1. (A) is correct but (R) is not correct
   2. Both (A) and (R) are correct and (R) is the right explanation of (A).
   3. Both (A) and (R) are incorrect.
   4. Both (A) and (R) are correct but (R) is not the right explanation of (A).
6. To examine whether the company is pursuing its best opportunities with respect to markets, products, and channels is the purpose of which one of the following types of marketing control ?
   1. Annual-plan control
   2. Efficiency control
   3. Profitability control
   4. Strategic control
7. Match the items of List I with the items of List II and choose the correct answer from the code given below.
   List I
   (a) Mobile defense
   (b) Contraction defense
   (c) Position defense
   List II
   (i) Occupying the most desirable position in consumers’ minds, making the brand almost impregnable.
   (ii) The leader stretches its domain over new territories through market broadening and market diversification.
   (iii) Large companies give up weaker markets and reassign resources to stronger ones.
   Code :
   1. (a) – (ii), (b) – (iii), (c) – (i)
   2. (a) – (i), (b) – (ii), (c) – (iii)
   3. (a) – (ii), (b) – (i), (c) – (iii)
   4. (a) – (i), (b) – (iii), (c) – (ii)
8. Which among the following is not included in seven Ps of marketing mix given by Booms and Bitner ?
   1. Process
   2. Politics
   3. Physical Evidence
   4. People
9. Match the items of List I with the items of List II and choose the correct answer from the code given below.
   List I
   (a) The economy was characterised by small regional suppliers who sold goods on a local basis
   (b) Standardised, branded goods were sold at national level
   (c) Era of market differentiation based on demographic,socio-economic and life style factors
   (d) Technological advancements, especially in the area of digital communication, allow marketers to communicate            with individual consumers or very small groups
   List II
   (i) Mass marketing
   (ii) Hyper-segmentation
   (iii) Segmentation
   (iv) Fragmentation
   Code :
   1. (a) – (iv), (b) – (i), (c) – (ii), (d) – (iii)
   2. (a) – (i), (b) – (iv), (c) – (ii), (d) – (iii)
   3. (a) – (i), (b) – (ii), (c) – (iii), (d) – (iv)
   4. (a) – (iv), (b) – (i), (c) – (iii), (d) – (ii)
10. Which one of the following demands states consumers are adequately buying all the products put into the marketplace ?
    1. Full demand
    2. Latent demand
    3. Irregular demand
    4. Overfull demand
11. Which one of the following is not true for introducing multiple brands in a category ?
    1. Decreasing internal competition within the firm
    2. Attracting consumers seeking variety who may otherwise have switched to another brand
    3. Yielding economies of scale in advertising, sales, merchandising and physical distribution
    4. Increasing shelf presence and retailer dependence in the store.
12. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code given below.
    Assertion (A) : Purchase decisions are not based on how customers perceive prices but on the marketer’s stated price.
    Reason (R) : Customers may have a lower price threshold, below which prices signal inferior or unacceptable quality, and an upper price threshold where the product appears not worth the money.
    Code :
    1. (A) is incorrect but (R) is incorrect.
    2. Both (A) and (R) are correct but (R) is not the right explanation of (A).
    3. Both (A) and (R) are correct but (R) is the right explanation of (A).
    4. Both (A) and (R) are incorrect.
13. Critical path indicates which one of the following ?
    1. Longest route of completing a task
    2. Shortest route of completing a task
    3. Average time of completing a task
    4. Recorded time of completing a task

Unit 10: Income-tax and Corporate Tax Planning : 7 Questions

1. Under Sec. 194 IB of the Income Tax Act, 1961 an individual or HUF (who is not required to get his accounts audited u/s 44 AB) who is responsible for paying to a resident any rent, shall deduct income tax, for the use of any land and building or both, if the rent exceeds
   1. Rs. 50,000 per month
   2. Rs. 40,000 per month
   3. Rs. 15,000 per month
   4. Rs. 25,000 per month
2. Which one of the following is agricultural income under Income Tax Act ?
   1. Dividend from a company engaged in agriculture.
   2. Income from the sale of replanted trees where denuded parts of the forest are replanted and subsequent  operations in forestry are carried out.
   3. Income from the land used for storing agricultural produce.
   4. Income from dairy farm, poultry farm, etc.
3. Match the items of List I with the items of List II and choose the correct answer from the code given below:
   

   List-I	List-II
   (a) Compensation received by an employee from his employer on termination of job	(i) Exception up to specified limits
   (b) Pension received by the widow of an employee	(ii) Profit in lieu of salary
   (c) Foreign Allowance for rendering services abroad	(iii) Income from other sources
   (d) Children hostel allowance	(iv) Fully exempt from tax

   Codes:
   1.  (a)-(ii), (b)-(iv), (c)-(iii), (d)–(i)
   2.  (a)-(iv), (b)-(iii), (c)-(i), (d)-(ii)
   3.  (a)-(iii), (b)-(iv), (c)-(i), (d)-(ii)
   4.  (a)-(ii), (b)-(iii), (c)-(iv), (d)-(i)

4.  Match the items of List I with the items of List II and choose the correct answer from the code given below:
   List-I
   (a)  Claims
   (b)  Fringe benefits
   (c)  Perquisites
   List-II
   (i) Company car, club membership, paid holidays, furnished house
   (ii) Telephone /mobile allowance, internet allowance, medical allowance
   (iii) Canteen, uniform, accident relief
   Codes:
   1. (a)-(ii), (b)-(i), (c)-(iii)
   2.(a)-(ii), (b)-(iii), (c)-(i)
   3. (a)-(i), (b)-(ii), (c)-(iii)
   4.   (a)-(iii), (b)-(ii), (c)-(i)
5. Given is the information related to a house:
   Municipal Value (M.V.)- Rs. 1,50,000
   Fair Rental value    –  Rs. 1,80,000
   Standard Rent        –  Rs. 1,60,000
   Actual Rent          –  Rs. 20,000 pm
   Municipal tax paid by owner is 20 % of M.V. Unrealised rent Rs.40,000 (condition of rule 4 satisfies ). What is the annual value of the house
   1. Rs. 1,60,000
    2. Rs. 1,70,000
   3. Rs. 1,50,000
   4.  Rs. 2,10,000
6. Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R). Read the statements and choose the correct answer using the code given below.
   Assertion (A): Among the methods of charging depreciation on fixed assets, diminishing balance method is the best method.
   Reason (R) :  Diminishing balance method of charging depreciation has been permitted under the Income Tax Act, 1961 for claiming deduction for depreciation.
   Code:
   (1)  (A) is correct but (R) is not correct.
   (2)  Both (A) and (R) are correct and (R) is the not correct explanation of (A).
   (3)  (A) is incorrect but (R) is correct.
   (4)  Both (A) and (R) are correct and (R) is the correct explanation of (A).
7. On fulfilling certain conditions, for an undertaking set up in special economic zones, deduction under section 10 AA of the Income Tax Act is allowed for
   (1) 5 years
   (2) Unlimited period
   (3) 15 years
   (4) 10 years.