COMMERCE ASSOCIATION (2018)

PRELIMINARY EXAMINATION Marks:50

1. Memorandum of Association contains–

(A) Objective clause (B) Name clause
(C) Capital clause (D) All of the above

2. FEMA stands for–

(A) Foreign Exchange Management Act (B) Funds Exchange Management Act
(C) Finance Enhancement Monetary Act (D) Future Exchange Management Act

3. A and B were sharing profits of a business in the ratio of 3 : 2. They admit C into partnership,
who gets 1/3 of A’s share of profit from A, 1/2 of B’s share of profit from B.The new profit
sharing ratio will be–
(A) 3 : 2 : 5 (B) 2 : 1 : 2
(C) 3 : 2 : 1 (D) 3 : 2 : 2

4. Maslow’s needs hierarchy theory relates to–

(A) Motivation (B) Leadership
(C) Communication (D) Directing

5. Which of the following is shown in Profit Loss Appropriation A/c ?

(A) Provision for Income Tax (B) Provision for Depreciation
(C) Provision for Doubtful Debts (D) Contribution to General Reserve

6. According to the Partnership Act, the maximum number of partners in a banking firm may be–
(A) 10 (B) 12 (C) 4 (D) 20

7. The principle of ‘Unity of Command’ was introduced by–

(A) Elton Mayo (B) Henry Fayol
(C) F. W. Taylor (D) Urwick

8. Changing the name of a company requires–

(A) special resolution and approval of Company Law Board
(B) special resolution and approval of Securities and Exchange Board of India
(C) special resolution and approval of Central Government
(D) ordinary resolution and approval of Company Law Board
9. Commercial paper is a–
(A) long-term corporate security meant for small investors
(B) medium-term corporate security meant for institutional investors
(C) treasury paper meant for corporate investors
(D) short-term corporate security meant for large-scale investors

10. Who is a ‘bull’ ?

(A) A stock broker who deals or specializes in a few shares
(B) An investor who sells securities in anticipation of being able to rebuy them later at a lower
price
(C) An investor who buys securities in anticipation of being able to sell them later at a higher
price
(D) An investor who expects the price of a security or of the market as a whole to fall

11. Job Evaluation is carried on mainly for–

(A) identifying geographical locational factors of business enterprise
(B) promoting job satisfaction
(C) simplifying wage administration
(D) meeting competition effectively

12. Dividend can be paid generally out of–

(A) share premium account (B) capital redemption reserve account
(C) current year’s profits (D) All of these

13. In India, which Bank was the first to introduce Bonds with Floating Rates for retail
investors ?
(A) Bank of Baroda (B) United Commercial Bank
(C) Punjab National Bank (D) State Bank of India

14. Which one of the following gives the correct sequence with respect to communication
process ?
(A) Sender, Message, Encoding, Receiver, Channel, Decoding and Feedback
(B) Message, Sender, Encoding, Receiver, Channel, Decoding and Feedback
(C) Encoding, Message, Sender, Decoding, Feedback, Receiver and Channel
(D) Sender, Message, Encoding, Channel, Receiver, Decoding and Feedback

15. Which of the following is known as ‘Smart Money’ ?

(A) Amount deposited into post office Saving Bank account
(B) Amount deposited into Saving Bank account
(C) Credit card
(D) Cash in hand
16. Which one of the following firm is considered to be illegal to do trading business ?
(A) A firm with 11 partners (B) A firm with 18 partners
(C) A firm with 20 partners (D) A firm with 22 partners

17. When shares are forfeited the share capital account is debited by–
(A) Paid-up amount (B) Called-up amount
(C) Nominal value of the shares (D) Market value of the shares

18. Bread and milk are which kind of products?

(A) Specialty Products (B) Convenience products
(C) Shopping products (D) Unsought products

19. Adding new features to a product is advocated by which of the approaches?

(A) Product Approach (B) Production Approach
(C) Marketing Approach (D) Selling Approach

20. ________ markets are made up of members of the distribution chain.

(A) Consumer (B) Business-to-business (industrial)
(C) Channel (D) Institutional

21. Which of the following is considered a “key player” in the marketing industry?
(A) marketer (B) suppliers or vendors
(C) distibutors or retailers (D) all of the above

22. The promotion “P” of marketing is also known as ________.

(A) Product Differentiation (B) Distribution
(C) Cost (D) Marketing Communication

23. Which of the following is an example of "portfolio investment"?

(A) An American places funds in a savings account in Canada
(B) Tokyo Bank of Japan buys Union Bank of the United States
(C) Saturn Corp. (owned by General Motors) builds a new factory in Tennessee
(D) An American puts $10,000 into a money market fund

24. "Capitalism" refers to:

(A) the use of markets (C) private ownership of capital goods
(B) government ownership of capital goods (D) private ownership of homes & cars

25. The law of demand states that:

(A) as the quantity demanded rises, the price rises
(B) as the price rises, the quantity demanded rises
(C) as the price rises, the quantity demanded falls
(D) as supply rises, the demand rises
26. The goal of a pure market economy is to best meet the desires of
(A) consumers (B) companies (C) workers (D) the government

27. Which of the following is a characteristic of pure monopoly?

(A) one seller of the product (C) close substitute products
(B) low barriers to entry (D) perfect information

28. Which of the following best defines price discrimination?

(A) charging different prices on the basis of race
(B) charging different prices for goods with different costs of production
(C) charging different prices based on cost-of-service differences
(D) selling a certain product of given quality and cost per unit at different prices to different
buyers

29. Skills that embodied in a person are called

(A) Human capital (B) Embodied skills (C) Physical capital (D) Experience skills

30. “Crowding out” means that

(A) a government budget deficit lowers interest rates and causes investment spending to rise
(B) an increase in marginal tax rates lowers production
(C) a government budget deficit raises interest rates and causes investment spending to fall
(D) a government budget deficit raises American exports and lowers American imports

31. Maximum rate of CGST prescribed by law for intrastate supply made is----
(A) 18% (B) 40% (C) 20% (D) 28%+cess

32. IGST is payable when the supply is ---

(A) Interstate (B) Intra-state (C) Intra- UT (D) All of the above

33. With the introduction of GST, imports will be—

(A) more expensive (B) cheaper (C) neutral with no change (D) None of the above

34. Paper currency is known as ‘fiat money’

(A) because only a fraction of total currency is in coins.
(B) because it is declared to be legal tender.
(C) because it cannot be used as payment for debts.

35. Indexed bonds

(A) carry fixed interest payments.
(B) adjust coupon rates to changes in general price level.
(C) adjust face values to changes in general price level.

36. If locker rent is not paid, Bank can

(A) seal the locker
(B) stop operation of locker
(C) break open the locker after giving suitable notice
(D) All of above

37. What is RuPay Debit Card?

(A) Domestic debit card
(B) Introduced by National Payments Corporation of India
(C) Accepted at all ATMs & PoS machines
(D) All of above

38. Which currency note has security thread?

(A) Rs.50/- (B) Rs.100/- (C) Rs.500/- (D) All of above

39. 100/- Rupee note is signed by

(A) Prime Minister (B) Finance Minister
(C) RBI Governor (D) None of above

40. Which of the following is not a function normally performed by HR department?

(A) Accounting (B) Recruitment and Selection
(C) Pay and Reward (D) Employee Relations

41. HRM is__________

(A) employee oriented (B) employer oriented
(C) legally oriented (D) none of the above

42. The meaning of the acronym 'SHRM' is __

(A) Short-term Human Resource Management
(B) Strategic Human Resource Management
(C) Strategestic Human Resource Management
(D) Strategic Humane Resource Management

43. A brief write-up of what the job is all about is __

(A) job finding (B) job summary
(C) job analysis (D) job specification

44. For forecasting the demand for manpower, the important techniques used are
(A) Delphi Techniques (B) Statistical Techniques
(C) Work Study Techniques (D) All of the above

45. The procedure for determining the duties and skill requirements of a job and the kind of
person
who should be hired for it is __
(A) job analysis (B) job design (C) job recruitment (D) job description

46.Deewali advance given to an employee is

(A) Revenue Expenditure (B) Capital Expenditure
(C) Deferred Revenue Expenditure (D) Not an Expenditure
47. Interpretation means
(A) Explanation of meaning and significance of the data in Financial Statements.
(B) Concerned with preparation and presentation of classified data
(C) Systematic analysis of recorded data
(D) Methodical classification of data given in Financial Statements.

48. Which of the following is wrong?

(A) All real and personal accounts are transferred to balance sheet
(B) Nominal accounts are transferred to P & L account
(C) Each account is opened separately in ledger
(D) Rent is a personal account, outstanding rent is nominal account

49. Fixed assets are held by business for _____

(A) Converting into cash (B) Generating revenue
(C) Resale (D) None of the above

50. Provision for discount on debtors is calculated on the amount of debtors.

(A) Before deducting provision for doubtful debts.
(B) After deducting provision for doubtful debts.
(C) Before deducting actual debts and provision for doubtful debts.
(D) After adding actual bad and doubtful debts.