Cut – off list – UGC NET | JRF Commerce 

 

UGC NET | JRF Commerce 2019 December

“Paper II” (100 Questions)

Business Environment and International Business – 10 Questions

1. Match List I with List II
   List I
   a) Size of the market
   b) Demographic environment
   c) Export-oriented units
   d) Multinational corporations
   List II
   i) Globalisation of business
   ii) Foreign trade policy
   iii) Macro-environment
   iv) Non-economic environment
   Choose the correct option from those given below:
   1. a) – iv); b) – ii); c) – iii); d) – i)
   2. a) – ii); b) – iii); c) – i); d) – iv)
   3. a) – iii); b) – ii); c) – i); d) – iv)
   4. a) – iii); b) – iv); c) – ii); d) – i)
2. Which one is odd?
   1. Economic policies
   2. Economic planning
   3. Socio-cultural factors
   4. Macro-economic scenario
3. Which of the following laws affect business organisations?
   1. Incorporation and Bankruptcy Laws
   2. Environmental Protection Laws
   3. Occupational Health and Safety Laws
   4. Competition Laws
4. Which of the following is NOT correct according to the Consumer Protection Act?
   1. District Forum shall consist of a lady social worker.
   2. State Commission shall consist of person who is or has been a judge of a High Court.
   3. District Forum shall consist of four members.
   4. National Consumer Disputes Redressal Commission shall consist of a person who is or has been a Judge of the Supreme Court.
5. According to FEMA, foreign exchange does NOT include:
   1. Deposits payable in any foreign currency
   2. Bills of exchange drawn in Indian currency but payable in any foreign currency
   3. Travellers cheques drawn by institutions outside India but payable in Indian currency
   4. Drafts drawn by banks outside India and payable in foreign currency
6. Which of the following are part of Corporate Social Responsibility (CSR) to consumers?
   a) Reasonable chances and proper system for accomplishment and promotion
   b) To supply goods at reasonable prices even when there is seler’s market
   c) Improving the efficiency of the business operation
   d) To provide an opportunity for being heard and redress genuine grievances
   Choose the correct answer from the options given below:
   1. a) and b)
   2. b) and d)
   3. b) and c)
   4. a) and c)
7. What are the drivers of globalization?
   a) Population mobility especially of labour
   b) Financial flows
   c) Exporting
   d) Assembly operations
   Choose the correct answer from the following:
   1. a) and d)
   2. b) and d)
   3. a) and b)
   4. c) and d)
8. Which two of the following are the functions of WTO
   a) To facilitate the implementation, administration and operation of trade agreement
   b) To carry out periodic reviews of the trade policies of its member countries
   c) To assist in the establishment of a multilateral system of payments
   d) To promote international monetary cooperation
   Choose the correct option from the following:
   1. a) and d)
   2. b) and c)
   3. c) and d)
   4. a) and b)
9. Given below are two statements. One is labeled as Assertion (A) and the other is labeled as Reason (R).
   Assertion (A): Globalisation refers to the free cross-border movement of goods, services, capital, information and people.
   Reason (R): Countries are consistently evolving innovative marketing barriers that are WTO compatible.
   In the light of the above two statements, choose the correct answer from the options given below:
   1. Both a) and R) are true and R) is the correct explanation of A)
   2. Both A) and R) are true but R) is NOT the correct explanation of A)
   3. A) is true but R) is false
   4. A) is false but R) is true
10. In which of the following years, the Bretton Woods Agreement was signed by the delegates from 44 nations which led to the establishment of the IMF?
    1. 1940
    2. 1952
    3. 1944
    4. 1957

Answer :

1 (d) 2 (c) 3 (a) 4 (c) 5 (d) 6 (b) 7 (c) 8 (d) 9 (b) 10 (c)

Accounting and Auditing – 9 Questions

1. Given below are two statements. One is labeled as Assertion (A) and the other is labeled as Reason (R).
   Assertion (A): Indian Accounting Standards contain some ‘carve outs’ and for convergence with IFRS with some changes applied in India..
   Reason (R): Financial Statements prepared in India with Indian Accounting Standards will not be IFRS compliant..
   In the light of the above two statements, choose the correct answer from the options given below:
   1. Both a) and R) are true and R) is the correct explanation of A)
   2. Both A) and R) are true but R) is NOT the correct explanation of A)
   3. A) is true but R) is false
   4. A) is false but R) is true
2. Following are the events which generally happen in the life of a public limited company:
   a) Public issue of shares
   b) Firm incorporation
   c) Preliminary expenditures
   d) Issue of equity shares to promoters of the company
   Choose the correct sequence (chronological order) of the events from the options given below:
   1. a) → b) → c) → d)
   2. b) → c) → d) → a)
   3. c) → b) → a) → d)
   4. c) → b) → d) → a)
3. Which of the following is NOT a method for calculating or ascertaining the amount of purchase consideration?
   1. Net Payment Method
   2. Net Assets Method
   3. Gross Receipts Method
   4. Share Exchange Method
4. Which of the following sections of the Companies Act, 2013 facilitate amalgamation, absorption and reconstruction of companies?
   1. 319
   2. 320
   3. 410
   4. 502
5. Which of the following are the methods of determining cost behaviour?
   a) High and low point method
   b) Least square regression method
   c) Accounting or analytical approach
   d) Non-parametric method
   Choose the correct answer from the options given below:
   1. a), b) and d)
   2. a), c) and d)
   3. b), c) and d)
   4. a), b) and c)
6. Which among the following are NOT qualified to be appointed as auditor of a company?
   a) An individual who is a Chartered Accountant and holds a Certificate of Practice as per CA Act, 1949
   b) A limited liability partnership firm, which has all partners as Chartered Accountants
   c) Officer or employee of a company who is qualified Chartered Accountant degree holder too
   d) Any Chartered Accountant whose appointment will result in the person being the auditor of more than 10 companies
   Choose the most appropriate option:
   1. a) and b)
   2. b), c) and d)
   3. c) and d)
   4. a), b) and d)
7. Match List I with List II
   List I
   a) Qualified Report
   b) Examine Valuation and Disclosure
   c) Access to record of company and its subsidiaries
   d) Mis-statement in prospectus in company issue of capital
   List II
   i) Auditor Duty
   ii) Auditor Liabilities
   iii) Auditor Report
   iv) Auditor Right
   Choose the correct option from those given below:
   1. a) – ii); b) – i); c) – iv); d) – iii)
   2. a) – iii); b) – i); c) – iv); d) – ii)
   3. a) – iii); b) – i); c) – ii); d) – iv)
   4. a) – iv); b) – ii); c) – iii); d) – i)
8. Which of the following is NOT part of the process of management audit?
   1. Identification of responsibility center
   2. Review of performance of each responsibility center
   3. Review of organizational structure
   4. Investigating the depreciation method and its application on fixed assets in the company
9. Which of the following statements is NOT correct regarding the duties of an auditor?
   1. Physical verification of fixed assets is primarily the responsibility of the auditor
   2. Ownership of fixed assets should be verified by examining the title deed by the auditor
   3. Auditor should ascertain that the assets are in the possession of the client
   4. The auditor should satisfy himself that the assets have been valued in the financial statements according to the accounting principles

Business Economics – 9 Questions

1. A production function expressed as:
   
   When A > 0, 0 < α < 1 and β > –1
   Where L = labour, K = Capital and A, α and β are three parameters is called:
   1. Constant elasticity substitution function
   2. Variable elasticity substitution function
   3. Leontief-type function
   4. Cobb-Douglas function
2. In the case consumers’ equilibrium to be explained through an ordinal approach, when there are two commodities with their prices given and with limited income of the consumer, the following information is required:
   a) Price line/budget line
   b) Indifference map
   c) Point of tangency between IC and budget line
   d) Equality of the slopes of IC and budget line
   Arrange the information required in the correct sequence and choose the right option from those below:
   1. b) → d) → a) → c)
   2. b) → a) → d) → c)
   3. a) → d) → b) → c)
   4. a) → b) → c) → d)
3. Which two of the following statements are correct?
   a) A simple monopoly firm always earns super normal profit
   b) Sweezy’s kinked demand curve model is best known model explaining relatively more satisfactory behavior of oligopoly firm for price rigidity
   c) A perfectly competitive firm is price-taker
   d) Firms under monopolistic competition earn only normal profits
   Choose the correct option from those below:
   1. a) and b)
   2. b) and d)
   3. b) and c)
   4. a) and c)
4. Which two of the following statements are correct?
   a) In the short-run, ΔTFC = 0, therefore ΔTC = ΔTVC.
   b) If decrease in AFC < Increase in AVC, then AC decreases c) If decrease in AFC = increase in AVC, AC remains constant d) If decrease in AFC > increase in AVC, then AC increases
   Choose the correct answer from the options given below:
   1. a) and c)
   2. b) and c)
   3. b) and d)
   4. a) and d)
5. The following are the two statements regarding elasticity of demand and its measurement
   Statement I: On every point on the straight line demand curve, the point elasticities are all equal
   Statement II: On every point on the rectangular hyperbola shaped demand curve, the point elasticities are not equal.
   Select the correct option for those below:
   1. Both the statements are correct
   2. Both the statements are not correct
   3. Statement I is correct while Statement II is incorrect
   4. Statement I is incorrect while Statement II is correct
6. On which of the following assumptions, the theory of consumer behaviour on cardinal utility approach is NOT based?
   1. Consumer is rational
   2. Limited money income of the consumer
   3. Maximisation of total satisfaction
   4. Diminishing marginal utility of money
7. Match the following theories of profit with their propounders:
   Theory
   a) Profit as Rent of Ability
   b) Dynamic Theory of Profit
   c) Risk Theory of Profit
   d) Innovation Theory of Profit
   Propounders
   i) F. B. Hawley
   ii) Joseph A. Schumpeter
   iii) J. B. Clark
   iv) F. A. Walker
   Choose the correct option from those given below:
   1. a) – iv); b) – ii); c) – iii); d) – i)
   2. a) – i); b) – ii); c) – iii); d) – iv)
   3. a) – iv); b) – iii); c) – i); d) – ii)
   4. a) – iii); b) – i); c) – ii); d) – iv)
8. Given below are two statements. One is labeled as Assertion (A) and the other is labeled as Reason (R).
   Assertion (A): In the case of short run cost behaviour, MC curve intersects AC curve at its minimum.
   Reason (R): While AC continues to decrease, MC begins to rise. Also, when AC is at its minimum, it is neither increasing nor decreasing. It is constant when AC is constant, it is equal to MC at the point of intersection.
   Choose the correct option from those below:
   1. Both a) and R) are true and R) is the correct explanation of A)
   2. Both A) and R) are true but R) is NOT the correct explanation of A)
   3. A) is true but R) is false
   4. A) is false but R) is true
9. ‘Maximisation of firm’s growth rate subject to managerial and financial constraints’ as one of the important alternative objectives of especially large business corporation was pleaded by:
   1. Milton Friedman
   2. Robin Marris
   3. Cyert and March
   4. H. A. Simon

Business Finance – 8 Questions 

1. A company raises Rs.1,00,000 by issue of 1,000, 10% debentures of Rs.100 each at a discount of 2% redeemable after 10 years. If the corporate tax rate is 40%, what would be the cost of capital?
   1. 6.8%
   2. 5.98%
   3. 6.18%
   4. 5.5%
2. Under which of the following approaches, the cost of equity is assumed to increase linearly with leverage, i.e. the average cost of capital remains constant with increased use of leverage?
   1. Net Operating Income Approach
   2. Net Income Approach
   3. Traditional approach
   4. Walter Approach
3. Which of the following statements are true?
   a) Pay-back period method considers all cash flows of a project
   b) Pay-back period method concerns more with the recovery of cost than profitability
   c) Net Present Value represents net addition to the wealth of shareholders
   d) Accounting Rate of Return method incorporates risk as well as time value of money
   Choose the correct option from those below:
   1. a) and b)
   2. a) and d)
   3. b) and c)
   4. b) and d)
4. Match the following methods of capital budgeting with their respective formula:
   Method
   a) ARR Method
   b) Pay-back Period Method
   c) NPV Method
   d) Probability Index
   Formula
   i) Present Value of Cash Inflows – Present Value of Cash Outflows
   ii) Present Value of Cash Inflows ÷Present Value of Cash Outflows
   iii) Average Income ÷ Average Investment
   iv) Investment ÷ Annual Cash Inflows
   Choose the correct option from those given below:
   1. a) – iii); b) – i); c) – iv); d) – ii)
   2. a) – iii); b) – iv); c) – i); d) – ii)
   3. a) – i); b) – ii); c) – iii); d) – iv)
   4. a) – i); b) – iv); c) – ii); d) – iii)
5. Which one of the following is the correct sequence of various stages of operating cycle of a manufacturing company?
   1. Raw material conversion period, work-in-progress conversion period, Finished goods conversion period, Receivables conversion period
   2. Raw material conversion period, work-in-progress conversion period, Creditors payment period, Receivables conversion period
   3. Creditor payment period, Raw material conversion period, Receivables conversion period, work-in-progress conversion period
   4. Raw material conversion period, Finished goods conversion period, work-in-progress conversion period, Receivables conversion period
6. Which of the following statements are correct?
   a) Dividend payout ratio refers to that portion of total earnings which is distributed among the equity shareholders of the company.
   b) ‘Bird in hand’ argument is given by Gordon’s model.
   c) MM Model suggests that dividend payment is very relevant for value of the firm.
   d) Walter’s Model suggests that the dividend payment does not affect the market price of the share.
   1. a) and b)
   2. a) and c)
   3. b) and c)
   4. c) and d)
7. If the risk-free return (Rf) is 6%, Beta value (β) is 1.5 and market rate of return (Km) is 10%, the expected rate of return would be:
   1. 15%
   2. 12%
   3. 17.5%
   4. 16%
8. Which of the following statements are true?
   a) Transaction exposure is inherent in all foreign currencies denominated contractual transactions
   b) Translation exposure relates to the change in accounting income and balance sheet statements caused by change in exchange rate
   c) Economic exposure has an impact on the valuation of a firm
   d) Operating exposure does not have any impact on the firm’s future operating revenues or future operating costs
   Choose the correct option from those below:
   1. a) and b) only
   2. b) and c) only
   3. b) and d) only
   4. a), b) and c) only

Business Statistics and Research Methods – 9 Questions

1. Match the tests with suitable situations of their application for hypothesis-testing:
   Tests
   a) z-test
   b) ANOVA
   c) Chi-square test
   d) Kruskal-Wallis test
   Situations
   i) Comparing differences in the mean values of more than two sample groups (Parametric Data)
   ii) Testing the significance of the difference between averages of two large sized sample groups (Parametric Data)
   iii) Comparing the differences in the mean values of more than two sample-groups (Non-parametric Data)
   iv) Testing the significance of the association between two attributes.
   Choose the correct option from those given below:
   1. a) – i); b) – ii); c) – iii); d) – iv)
   2. a) – ii); b) – i); c) – iv); d) – iii)
   3. a) -ii); b) – iii); c) – i); d) – iv)
   4. a) – i); b) – iv); c) – ii); d) – iii)
2. Which of the following is the non-random method of selecting samples from a given population?
   1. Stratified Sampling
   2. Systematic Sampling
   3. Quota Sampling
   4. Multi-stage Sampling
3. The sum total of the values of two variables ‘X’ and ‘Y’ is equal for all the observations. The value of the coefficient of correlation between ‘X’ and ‘Y’ is:
   1. +1 (perfectly positive)
   2. –1 (perfectly negative)
   3. zero (No correlation)
   4. > 0 < 1 (Imperfect correlation)
4. Which two of the following measures of central tendency are NOT capable of algebraic treatment?
   a) Geometric Mean
   b) Median
   c) Arithmetic Mean
   d) Mode
   e) Harmonic Mean
   Choose the correct answer from the options given below:
   1. a) and b)
   2. d) and e)
   3. b) and d)
   4. c) and e)
5. Which two of the following statements are true?
   a) The sum of deviations from mean (ignoring algebraic signs) is greater than the sum of the deviations from median (ignoring algebraic signs).
   b) Standard deviation is independent of change of origin and change of scale.
   c) In a symmetrical distribution, mean deviation equals 4/5 of standard deviation
   d) In a symmetrical and bell shaped distribution, quartile deviation is 1/3 of standard deviation
   Choose the answer from the options given below:
   1. b) and d)
   2. a) and c)
   3. c) and d)
   4. a) and b)
6. For calculating posterior probabilities (conditional probabilities under statistical dependence), the following information is available:
   a) conditional probabilities
   b) original probability estimates (prior-probabilities) of mutually exclusive and collectively exhaustive events
   c) Arbitrary event with probability ≠ 0 and for which conditional probabilities are also known
   d) Joint probabilities of prior probability and conditional probability
   Given the information that the arbitrary event has occurred, arrange the above information in a sequence of their requirement as per Baye’s Theorem.
   Choose the correct option:
   1. a) → b) → d) → c)
   2. c) → b) → a) → d)
   3. b) → c) → d) → a)
   4. b) → a) → d) → c)
7. Which two of the following statements are true?
   a) Skewness studies the flatness or peakedness of the distribution
   b) A positively skewed distribution curve is stretched more to the right than to the left
   c) On the basis of empirical relationship between mean, mode and median for moderately assymetrical distribution, Karl Pearson’s coefficient of skewness can be measured by 3(Mean – Median) divided by Standard Deviation
   d) If mean < mode, the distribution is positively skewed
   Choose the correct option from those below:
   1. a) and b)
   2. b) and c)
   3. c) and d)
   4. b) and d)
8. Which of the following is an incomplete experimental research design?
   1. Before and after control group design
   2. Factorial design
   3. One group before-after design
   4. Latin Square design
9. Which of the following statements is false?
   1. When value of correlation coefficient is one, the two regression lines coincide
   2. The regression coefficients are independent of the change of the origin and of scale
   3. The sign of the regression coefficients are always the same
   4. The square of the coefficient of correlation is called coefficient of determination

Business Management and Human Resource Management – 10 Questions

1. What is the typical sequence in which the following selection devices are used by the company?
   a) Reference checks
   b) Physical examination
   c) Application Blank
   d) Hire
   e) Conditional Offers
   f) More interviews
   g) Screening interviews
   h) Tests
   Choose the correct answer from the options given below:
   1. c) → g) → h) → f) → a) → e) → b) → d)
   2. d) → g) → f) → h) → a) → e) → b) → c)
   3. c) → h) → g) → a) → f) → e) → b) → d)
   4. d) → g) → h) → f) → a) → e) → b) → d)
2. Functions of a first-level or front line supervisors are to include which of the following?
   a) To determine individual job agreement
   b) To attend to grievances and resolve conflicts
   c) To provide technical knowledge and guidance to the workers
   d) To supply strategic information relating to production to the management
   Choose the correct answer from the options given below:
   1. a) and b) only
   2. a) and c) only
   3. a), b) and c) only
   4. All of them – a), b), c) and d)
3. Quality circle is a type of:
   1. Problem-solving team
   2. Cross-functional team
   3. Self-directed team
   4. Project team
4. Which of the following terms means the tendency of a supervisor to rate a subordinate lower than his performance?
   1. Horns effect
   2. Halo effect
   3. Central tendency
   4. Pointing tendency
5. Match the ‘Category of Compensation’ with ‘Compensation Plan’
   Category of Compensation
   a) Pay for time not worked
   b) Services and Perquisites
   c) Protection Programme
   d) Incentive Pay
   e) Deferred Pay
   Compensation Plan
   i) Savings Plan
   ii) Stock Option
   iii) Pension
   iv) Sick Leave
   v) Low Cost Meals
   Choose the correct option from those given below:
   1. a) – iii); b) – iv); c) – ii); d) – i); e) – v)
   2. a) – iv); b) – v); c) – iii); d) – ii); e) – i)
   3. a) – iv); b) – v); c) – i); d) – ii); e) – iii)
   4. a) – iii); b) – v); c) – i); d) – iv); e) – ii)
6. The informal group’s communication system is called:
   1. Group Dynamics
   2. Grapevine
   3. Exchange
   4. Interaction
7. Which of the following types of authorities are found in most organisations?
   a) Division Authority
   b) Line Authority
   c) Staff Authority
   d) Functional Authority
   Choose the correct option from those given below:
   1. a) and b) only
   2. b) and c) only
   3. a), b) and c) only
   4. b), c) and d) only
8. The theories that explain the formation of ‘Informal Groups’ are to include which of the following?
   a) Propinquity theory
   b) Similarity or Balance Theory
   c) Displacement Theory
   d) Need for Achievement Theory
   Choose the correct option from those given below:
   1. a) and d) only
   2. a) and b) only
   3. a), b) and c) only
   4. a), b), c) and d)
9. Michael Porter proposed generic strategies that provide good starting points for strategic thinking. Identify them from the below mentioned strategies:
   a) Overall cost leadership
   b) Innovation
   c) Focus
   d) Differentiation
   Choose the correct answer from the options given below:
   1. a) and b) only
   2. a), c) and d) only
   3. a), b) and d) only
   4. All of these – a), b), c) and d)
10. Which of the following is NOT a factor contributing to MBO program failure?
    1. Altering goals to meet changes in circumstances
    2. Easy goals
    3. Lack of management support
    4. Setting of unrealistically difficult goals

Banking & Financial Institutions – 13 Questions

1. Which among the following is NOT a correct statement?
   1. The Reserve Bank of India worked as Central Bank of Burma till April 1947
   2. The Reserve Bank of India worked as Central Bank of Pakistan till June 1948
   3. The Reserve Bank of India worked as Central Bank of Bangladesh from January 1972 to December 1975.
   4. The Reserve Bank of India commenced its operations  on April 1, 1935.
2. National Housing Bank was established in 1987 as wholly owned subsidiary of which of the following?
   1. State Bank of India
   2. Life Insurance Corporation of India
   3. Reserve Bank of India
   4. Industrial Finance Corporation of India
3. Match the following Banking Sector reform committees with their respective purposes:
   Committee
   a) Y. V. Reddy Committee
   b) Rashid Jilani Committee
   c) S. M. Kelkar Committee
   d) I. T. Vaz Committee
   Purpose
   i) Revised method of lending in place of cash credit system
   ii) Rationalization of interest rate on small savings
   iii) Working capital lending norms
   iv) Regional rural banks
   Choose the correct option from those given below:
   1. a) – i); b) – ii); c) – iii); d) – iv)
   2. a) – ii); b) – i); c) – iv); d) – iii)
   3. a) – iv); b) – iii); c) – ii); d) – i)
   4. a) – ii); b) – iii); c) – iv); d) – i)
4. Choose incorrect statement from the following:
   1. 28 Days T-bills were introduced in 1998
   2. 364 Days T-bills were introduced in 1992
   3. 182 Days T-bills were introduced in 1986
   4. 273 Days T-bills were introduced in 2006
5. 14 Days intermediate T-bills were brought into effect from 1996-97 after the abolition of which of the following?
   1. 91 Days T-bills
   2. 182 Days T-bills
   3. 273 Days T-bills
   4. 364 Days T-bills
6. Non-Banking Financial Companies can be classified as:
   a) Asset Finance Company (AFC)
   b) Investment Company (IC)
   c) Loan Company (LC)
   d) Foreign Trade Company (FTC)
   Choose the correct options given below:
   1. a), b) and c) only
   2. b), c) and d) only
   3. a), c) and d) only
   4. a), b) and d) only
7. Arrange the following financial institutions in ascending order of their year of establishment:
   a) National Housing Bank
   b) Export-Import Bank of India
   c) NABARD
   d) Unit Trust of India
   Choose the correct option from those below:
   1. b) → d) → c) → a)
   2. d) → b) → a) → c)
   3. d) → b) → c) → a)
   4. d) → c) → b) → a)
8. Which three of the following types of cyber-attacks may occur in the process of mobile banking?
   a) Bedrock attack
   b) Front door attack
   c) Denial of service attack
   d) Direct access attack
   Choose the correct option from those given below:
   1. a), b) and c)
   2. b), c) and d)
   3. a), b) and d)
   4. a), c) and d)

Comprehension:
Read the passage carefully and answer the questions that follow:
Life insurance in its modern form came to India from England in the year 1818. The Oriental Life Insurance Company started by Europeans in Calcutta was the first insurance company on Indian soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of the European community and Indian natives were not being insured by these companies. However, later with the efforts of eminent people like Babu Muttylal Seal, foreign insurance companies started insuring Indian lives too. But Indian lives were being treated as sub standard lives and heavy extra premium were being charged upon them. The Bombay Mutual Life Assurance Society heralded the birth of the first Indian life insurance company in the year 1870 and covered Indian lives at normal rates. Starting as an Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. In 1907, the Hindustan Cooperative Insurance Company took birth in one of the rooms of ‘The Jorsanko’, house of the great poet Rabindranath Tagore in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912, India had no legislation to regulate the insurance business. In the year 1912, Life Insurance Companies Act and Provident Fund Act were passed. The Life Insurance Companies Act, 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian Companies on many accounts, putting Indian Companies at a disadvantage.

1. Identify the correct statement from the following:
   1. Initially, insurance companies used to discriminate Indian and European clients
   2. There was no discrimination in Indian and European clients by the insurance companies initially
   3. Indian clients were charged lower premium by the insurance companies in the beginning
   4. Indian insurance companies charged higher premium to Europeans at a later stage
2. Which one among the following grew along with insurance business in India?
   1. Pension Fund
   2. Provident Fund
   3. Gratuity
   4. Arbitrage
3. The insurance business in India was started first by which one of the following?
   1. Americans
   2. Indian merchants
   3. Europeans
   4. Afro-Indians
4. The paragraph is about which of the following?
   1. Genesis of insurance in India?
   2. Struggle of insurance business
   3. Conflict of insurance business
   4. Complications of insurance business
5. Which among the following was later renamed as Bombay Life?
   1. The Indian Mercantile General Assurance
   2. The Oriental Life Insurance Company
   3. National Insurance
   4. Swadeshi Life

Marketing Management – 13 Questions

1. Given below are two statements. One is labeled as Assertion (A) and the other is labeled as Reason (R).
   Assertion (A): Auto companies and other consumer goods companies offer cash rebates to encourage purchase of the manufacturer’s products within a specified period.
   Reason (R) : The same product is priced differently at different times..
   In the context of the two statements above relating to pricing strategy, which one of the following options is correct?
   1. Both a) and R) are correct
   2. Both A) and R) are not correct
   3. A) is correct but R) is not correct
   4. A) is not correct but R) is correct
2. In e-commerce, one of the key design elements of an effective website-community refers to:
   1. Its layout and design
   2. The way site enables user to user communication
   3. Site’s ability to tailor itself to different users or to allow users to personalize the site
   4. Degree that the site is linked to other sites
3. Companies are becoming skilled in Customer Relationship Management (CRM) focus on:
   1. Understanding the perceived performance and buyer’s expectations
   2. Giving benefits to the customers by reducing cost
   3. Developing programs to attract and retain the right customers and meeting the individual needs of valued customers
   4. Giving the quality in features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.
4. Given below are two statements. One is labeled as Assertion (A) and the other is labeled as Reason (R).
   Assertion (A): If the firm is prepared to incur increased cost on transportation, it may be in a position to reduce its inventory cost..
   Reason (R): As in such a case, the firm can use the fastest mode of transport and rush the goods/stocks to the desired warehouse, unmindful of the cost of transportation.
   In the context of the two statements above related to logistics management, which one of the following options is correct?
   1. Both a) and R) are true and R) is the correct explanation of A)
   2. Both A) and R) are true but R) is NOT the correct explanation of A)
   3. A) is true but R) is false
   4. A) is false but R) is true
5. Which of the following is NOT true about web marketers?
   1. Web marketers usually try to attract prospects to their site through email, advertisements in newspapers
   2. Use attractions like discounts, gifts and contests
   3. Ask customers to give their personal data mandatorily
   4. Give a lot of publicity to the discount schemes
6. Match the modes of communication in marketing and their communication platforms:
   Mode of Communication
   a) Advertising
   b) Sales Promotion
   c) Word of mouth marketing
   d) Personal selling
   Communication Platform
   i) Blogs
   ii) Brochures and Booklets
   iii) Sales meetings
   iv) Contests
   Choose the correct option
   1. a) – ii); b) – iii); c) – iv); d) – i)
   2. a) – ii); b) – iv); c) – i); d) – iii)
   3. a) – iv); b) – iii); c) – ii); d) – i)
   4. a) – iv); b) – iii); c) – i); d) – ii)
7. In the recent years – the major gain in logistical efficiency have come from which one of the following?
   1. Advances in Information Technology
   2. Reduction in petroleum prices
   3. Fast order processing
   4. Increase in production of commercial vehicles
8. Market logistic planning has the following four steps. Arrange the steps in correct sequence.
   a) Development operational excellence in sales forecasting, warehousing management, transportation and material management
   b) Select the best channel design and network strategy for reaching the customers
   c) Implement the solution with the best information systems, equipment, policies and procedures
   d) Decide on company’s value proposition to its customers
   Select the correct option from those below:
   1. a) → b) → c) → d)
   2. d) → b) → a) → c)
   3. d) → b) → c) → a)
   4. d) → c) → b) → a)

Comprehension:
Read the passage carefully and answer the questions (96 to 100) that follow:
Companies often define themselves in terms of products: They are in the “auto business” or the “clothing business”. Market definitions of a business, however describe the business as a customer – satisfying process. People are transient, basic needs and customer groups endure forever. Transportation is a need: the horse and carriage, automobile, railroad, airline, ship and truck are products that meet the need. Viewing business in terms of customers can suggest additional growth opportunities. There exists a difference between a target market definition and a strategic market definition. To define its mission, a company should address Peter Drucker’s classic question: What is our business?

1. Pepsi could define its ‘target market’ as:
   1. Everyone who drinks carbonated soft drinks and are competitors
   2. Anyone who drinks liquids
   3. Everyone who drinks non-milk drinks
   4. Anyone who drinks competitor’s drinks
2. Which of the following is correct market definition of ‘BPCL’?
   1. We distribute oil products
   2. We are the largest oil supply company in India
   3. We supply energy
   4. Bharat’s own oil distribution company
3. Which of the following is NOT a major characteristic of a good mission statement?
   1. They have very limited words
   2. They focus on a limited number of goals
   3. They stress the company’s major competitive spheres in which company will operate
   4. They have a long-term view
4. Which of the following is the correct combination Product Definition and Market Definition of Xerox Company?
   1. Product Definition – We sell photocopies
   Market Definition – We help improve office efficiency
   2. Product Definition – We make photo machines
   Market definition – We improve copy speeds
   3. Product Definition – We sell copying equipment
   Market Definition – We make office more efficient
   4. Product Definition – We make copying equipment
   Market definition – We help improve office productivity
5. Which of the following is the correct product definition of ‘Blue Star’?
   1. We provide climate control in homes and offices
   2. We supply air conditioners
   3. We make air cooling systems
   4. We make air conditioners

Legal Aspect of Business – 9 Questions

1. Which one of the following is a void contract?
   1. Unilateral contract
   2. A contract which ceases to be enforceable by law
   3. Implied contract
   4. Express contract
2. The indemnity holder is NOT entitled to:
   1. All damages which he may be compelled to pay in any suit in respect of any matter to which the promise applies
   2. All costs that he may be compelled to bear in defending any such suit
   3. All sums that he may have paid under the terms of any compromise of such suit
   4. Damages for liability incurred which is not absolute
3. According to Sale of Goods Act, which two of the following are defined as ‘goods’?
   a) Movable property
   b) Growing crops
   c) Actionable claims
   d) Book debt
   Choose the correct answer from the following options:
   1. a) and d)
   2. b) and c)
   3. a) and b)
   4. d) and b)
4. Which of the following is the odd one out?
   1. Specific goods
   2. Unascertained goods
   3. Future goods
   4. Ascertained goods
5. Which of the following are true about conditions according to the Sale of Goods Act?
   a) Title
   b) Description
   c) Quite possession
   d) Encumbrances
   Choose the correct answer from the following options:
   1. a) and d) only
   2. b) and c) only
   3. a), c) and d) only
   4. a) and b) only
6. Which one of the following relates to warranty?
   1. It is of vital importance for completion of contract
   2. If there is breach, the aggrieved party can repudiate the contract
   3. It is essential to the main purpose of the contract
   4. In case of breach, the aggrieved party can claim only damages
7. Which of the following is NOT a presumption about a negotiable instrument?
   1. Date
   2. Consideration
   3. Stamp
   4. Absolute and good title to the transferee
8. Who are the parties to a cheque?
   a) Drawer
   b) Payee
   c) Acceptor
   d) Holder
   Choose the correct answer from the following options:
   1. a) and b) only
   2. a), b) and d) only
   3. a) and c) only
   4. All of these – a), b), c) and d)
9. Match List I with List II
   List I
   a) Transfer of ownership
   b) Sale of goodwill after dissolution
   c) Buy-back of securities
   d) Promissory note
   List II
   i) Negotiable Instrument
   ii) Contract of sale of goods
   iii) Dissolution of partnership firm
   iv) Share capital of company
   Choose the correct option from those given below:
   1. a) – ii); b) – iii); c) – iv); d) – i)
   2. a) – iii); b) – iv); c) – ii); d) – i)
   3. a) – iv); b) – ii); c) – i); d) – iii)
   4. a) – i); b) –ii); c) – iii); d) – iv)

Income Tax and Corporate Tax Planning – 10 Questions

1. Under which of the following categories, a partner of partnership firm will be assessed?
   1. An individual
   2. HUF
   3. Firm
   4. Body of an Individual
2. Which among the following is correct statement about residential status of a company?
   1. A company can be classified as “not ordinarily resident”
   2. A company can never be classified as “not ordinarily resident”
   3. A company can be classified as “not ordinarily resident” with the permission from the Ministry of Finance
   4. A company can be classified as “not ordinarily resident” with the permission from Ministry of Commerce
3. What percentage of income from compensation on disaster is exempted from tax liability?
   1. 100%
   2. 75%
   3. 50%
   4. 25%
4. Given below are two statements. One is labeled as Assertion (A) and the other is labeled as Reason (R).
   Assertion (A): Tax should not be charged on dividend income from the shareholders.
   Reason (R) : Some economists are of the opinion that when tax has already been paid on the profit of the company and balance is distributed as dividend to the owners, tax need not be levied on them.
   In the light of the above two statements, choose the correct answer from the options given below:
   1. Both a) and R) are true and R) is the correct explanation of A)
   2. Both A) and R) are true but R) is NOT the correct explanation of A)
   3. A) is true but R) is false
   4. A) is false but R) is true
5. Which two of the following are correct in terms of rate of tax deduction at source (TDS)?
   a) Income by way of winning from horse race: @ 30%
   b) Insurance Commission: @ 10%
   c) Rent of Plant & Machinery: @ 5%
   d) Rent of Furniture: @ 5%
   Choose the correct option from the following:
   1. a) and b)
   2. a) and c)
   3. a) and d)
   4. b) and c)
6. Which two of the following are correct about TDS Certificates?
   (a) TDS on non-salary payment – Form 16
   (b) TDS on salary payment – Form 16 A
   (c) TDS on sale of property – Form 16 B
   (d) TDS on rent – Form 16 C
   1. (a) and (b)
   2. (c) and d)
   3. (a) and d)
   4. (b) and c)
7. Which two of the following are correct about the due date of issue of the TDS certificate?
   a) Form No. 16 – Annual
   b) Form No. 16 A – Quarterly
   c) Form no. 16 B – Half Yearly
   d) Form No. 16 C – Monthly
   Choose the correct option from those below:
   1. a) and d)
   2. a) and c)
   3. a) and b)
   4. c) and d)
8. Arrange the steps to e-filing of Income Tax Return in correct sequence:
   a) Register yourself
   b) Verify ITR V
   c) Select the requisite form
   d) Fill form and upload
   Choose the correct option from those below:
   1. a) → c) → d) → b)
   2. a) → b) → c) → d)
   3. a) → b) → d) → c)
   4. c) → a) → d) → b)
9. ADEN Rules, 1953 is related to which of the following?
   1. Tax exemption
   2. Residential status
   3. Double taxation relief
   4. Assessment of corporate entity
10. Match the following countries with the types of Double Taxation Avoidance Agreement signed by India with them:
    Country
    a) Austria
    b) Bahamas
    c) Lebanon
    d) Sri Lanka
    Type of agreement
    i) Limited Agreement
    ii) Comprehensive Agreement
    iii) Comprehensive Agreement / Limited Multilateral agreement
    iv) Tax information Exchange Agreement
    Choose the correct option from those given below:
    1. a) – iv); b) – ii); c) – i); d) – iii)
    2. a) – ii); b) – iv); c) – i); d) – iii)
    3. a) – ii); b) – iv); c) – iii); d) – i)
    4. a) – i); b) – ii); c) – iii); d) – iv)

Answer :

1 2 (b) 3 (a) 4 (a) 5 (c) 6 (b) 7 (c) 8 (a) 9 (c) 10 (b)