RE ‘Total Number of Pages : 32 COMMERCE, Paper — IL Note: This paper con s hundred (100) objective type questions, Each question carries two (2) marks, All questions are compulsory. 1. Assertion (A) : India’s balance of payments is always in disequilibrium. Reason (R) : The demand for foreign exchange is more than its supply. Codes : (A) Both (A) and (R) are correct and (R) is the correct explanation of (A) (B) Both (A) and (R) are correct but (R) is not the correct explanation of (A) (© (A) is correct but (R) is incorrect oO (A) is incorrect but (R) is correct 2. Assertion (A) : India’s trade policies Fare still inward looking. Reason (R) : The focus of EXIM policy ‘Sis more on export promotion measures. Codes : (A) Both (A) and (R) are correct and (R) is the correct explanation of (A) @pBorn (A) and (R) are correct but (R) is not the correct explanation of (A) (©) Both (A) and (R) are incorrect ©) (A) is incorrect but (R) is correct 3. Foreign Investment Promotion Board is under the ministry of (A) External affairs _ ~f (B) Industry (C) Finance ~ ~p@D) PMO 4. The European Union is a (A) Political Union - ~/(B) Common Union *(C) Customs Union (D) Economic Union ~ 5. Match the following : List -1 List - 0 a, IBRD i. Helpdevelopingcountries reduce poverty b. IDA ii, Concessional loans to the world’s poorest countries c. IFC iii, Finance to the private sector d. MIGA iv. Promotes FDI into developing countries Codes : abe d (A) ii i ii (Bi ii iii © it i iv Mi ii iv 6, FDI into fresh production facilities is known as (A) Greenfield investment (B) Brownfield investment (C) Horizontal investment (D) Vertical investment 7. ‘Mysore Silk’ can be included under (A) Patent | @B) Copyright + (©) Trademark (D) Geographical indication Paper I)8, The correct expansion of the acronym BIMSTEC ~¢ (A) Bay of Bengal Initiative for malti- sectoral technical and economic co-operation (B) Bay of Bengal Initiative for multi-sectoral trade and economic _-=-\e0-operation 7 (© Bangladesh Initiative for multi- ~ sectoral trade and economic co-operation ‘yD) Bangladesh Institute for multi- sectoral trade and economic co-operation 9. The main objective of UNCTAD is (A) To deal with only trade (B) To deal with trade and 5) development - (©)To deal with trade, investment 7 and development of developing countries (D) To deal with trade, investment and development of least developed countries 10. A system based on the licensing of the right to duplicate a successful business format in foreign markets is known as ‘A) Partnering @®)Licensing (©) Franchising (D) Contract manufacturing 11. Consolidated financial statements are prepared when a parent subsidiary relationship exists in recognition of the accounting concept of “-(A) Materiality (B) Going concern (©) Objectivity ” “(D) Entity ‘Total Number of Pages : 32 12. Which of the following should be included in general and administrative expenses ? Interest. Advertising (A) Yes No (B) Yes Yes () No No (D) No Yes 13. The title of AAS2 issued by Council of ICAL is (A) Objective and scope of financial statements audit (B) Objective and scope of the financial statements (C) Objective and scope of the audit of financial statements (D) Objective and scope of business of an entity 14, Formation of Accounting Standards Board in India is during (A) August 1987 (B) January 1987 (©) June 1977 (D) April 1977 15. To achieve a reasonably objective basis, financial forecasts and projection should be prepared i. In accordance with GAAP. ii, Using information that is in accordance with the plans of the entity.— iii, With due professional care. Codes : (A) iandiii © ii and iii a (B))i, ii and iii ) i andi Paper Ik16. Match the following : List -I List — 1 (HR Accounting (Proponents) Model) a, Replacement i. Giles and cost-based Robinson approach b. Opportunity cost ii, Flanholtz model c. Human asset iii. Likert multiplier method d. A model on valuation iv - Hekimain of human and organisation Jones Codes : abe d A ivi iti ii ()ii iv i it? (Yi ii ive ii OY ii i iv i 17. Assertion (A) : Fixed budgetis concerned with budgeting of fixed assets. Reason (R): Costcentreand responsibility centre are not homogeneous terms. Codes : “¢ (A) Both (A) and (R) are correct ~@) Both (A) and (R) are incorrect ~1(C) (A) is correct, but (R) is incorrect (P) (A) is incorrect, but (R) is correct 18. Capacity ratio x efficiency ratio = +) (A) Activity ratio (B) Profitability ratio €) Solvency ratio ~@) Liquidity ratio 1K-0120 ‘Total Number of Pages : 32 19. Continuous examination of books of accounts throughout the year is called (A) Occational audit (B) Internal audit (©) Periodic audit ))' Perpetual audit 20. Match the following : List I List - 1 a, Segment reporting i. AS-26 b. Intangible assets ii, AS-19 c. Accounting investments iii. AS-17 d. Leases iv. AS-13 Codes : abe d (Ai i iv i ®)i ii ii iv ©iv ii i ii ()i iv ii iii - Assertion (A) : Giveaways and buy-one, - get-one (BoGo) sales are examples for penetration pricing. Reason (R) : The manufacturer temporarily loses money, but does so in the hope of creating interest in the new product, Codes : (A) Both (A) and (R) are true and (R) is the correct explanation of (A) (B) Both (A) and (R) are true but (R) is not the correct explanation of (A) (©) (A) is correct, but (R) is incorrect (@) (A) is incorrect, but (R) is correct Paper II,ae a 4 ‘22, The major objection of economists to monopolies is ~#(A) The lack of technological progress in such industries (B) The dangerous impact on demographic government (©) The instability in an industry where there is a single producer (Q) The tendency to restrict output and charge higher price 23, Match the following : List -1 a. Accounting view point b. Economic ii, Outlay cost view point c. Timing ii, Direct cost 4. Traceability iv. Historical cost ~ Codes : abe da Ait ww + B)ii-i ti (ii i. GWG 4 Oi iiiii—iv List - II i. Implicit cost 4 24, Which of the following is/are the characteristic(s) of Business Economics ? ++i. Business economies is micro economic in character. ii.It is positive in nature. iii, It is both conceptual and metrical. Its contents are based mainly on the theory of firm. Coes ae (A) i, ii and iii (B) only iv i, iii and iv (D)ii, ii and iv~ ‘Total Number of Pages : 32 25. Which of the following is not the property of indifference curves ? 4(A) Downward sloping ” (BYConeave to origin 4 ©)srow different combinations of the two goods yielding the same level of utility yO Don't touch is other / 26. Marginal rate of technical substitution is constant when two goods are (A) Perfect substitutes @® Perfect complements (C) Normal goods (D) Giffen goods 27. We can say with certainty that when the demand for TVs increases in the long- mun, prices (A) Will go down (B) Will go up (© Stay at the original level (Dy) Cannot be predicted without the knowledge of elasticity of demand 28. When the change in price and total revenue are in the same direction, price elasticity is equal to >t @) <1 + © 0 Oo 29. When MR is negative, price elasticity is r (A) >1 (B)/<1 oo @)1& 30. Price elasticity is (A) The slope of the demand curve (B) Usually greater than unity Usually less than unity ® A ratio of relative change between a dependent variable and an independent variable 31. Match the following : List -I List — 1 a, NI model 1. Cost of equity increase rapidly under extreme leverage b. NOI model II. Cost of equity decrease under extreme leverage c. Traditional IIT. Cost of equity is hypothesis constant for all leverage d. MM’s IV. Cost of equity hypothesis increase with increase in leverage V. Cost of equity decrease with an increase in leverage Codes : boc d @ Wel’ We mven 1 ©miwi u- (D) IV me’ 32. assumes that the debt market is divided into several segments based on maturity of debt. (A) Liquidity theory (B) Segmented market theory (©) Expectation theory (D) Liquidity premium theory Total Number of Pages : 32 33. A condition when promises to creditors of a company are broken or honoured with great difficulty, is known as (A) Problem of solvency (B) Problem of liquidity (C) Financial distress (D) Problem of insolvency 34, The compound average annual rate that is calculated with a reinvestment rate different than the projects IRR is called (A) Implicit rate of return (B) Modified internal rate of return (C) Differential rate of return (@y Reinvestment rate of retum 35. Which of the following is/are merits of IRR criteria ? a, Provides multiple IRRs for mixed NCFs. b. Itis independent of discount rate. ¢. It considers time value of money. Codes : (A) only a (B) only b (C) aandb (D) b and ¢ 36. Risk arising from the unique uncertainties of individual securities is known as (A) Systematic risk (B) Unsystematic risk (©) Market risk (D) Total riskSameer 37. The currency having highest weightage in the determination of the value of SDR is (A) British, Pound (B) Euro (© US Dollar (D) Yen 38. The form of assistance that members of World Bank get is (A) Technical and economic (B) Political and financial (CY Technical and financial () Political and economic 39. Foreign exchange rates have an impact on firms which is referred to as (A) Economic exposure (B) Balance sheet exposure (©) Transaction exposure (D) Operating exposure 40. Assertion (A) : Wealth maximisation is considered as supervisor to profit maximisation. Reason (R) : This is because wealth is precisely defined as net present value and it accounts for time value of money and risk. Codes = (A) Both assertion and reasoning are correct (B) Both assertion and reasoning are not correct (©) Assertion is correct and reasoning is not correct (D) Assertion is not correct and reasoning is correct B ‘Total Number of Pages : 32 41. Median, quartiles and percentiles are considered as measures of (A) Deviation averages * (B) Mathematical averages ~* ©Positional averages (D) Central averages 42, When deviations from mean are squared and divided by the total number of observations, the resultant is 4 ® Standard deviation ~~ ) Variance « es (©) Dispersion ws (D) Deviation ~ 4B deals with the symmetry of the distribution of collected data on both sides of central value. (A) Skewness B) Kurtosis (©) Moments (D) Dispersion 44, Statement (A) : In a scatter diagram, the independent variable is shown on the X-axis while the dependent variable is shown on the Y-axis. Statement (B) : The coefficient of rank correlation has the same units as the Pearsonian coefficient of correlation, Codes : (A) Both statements (A) and (B) are true ~@B) Both statements (A) and (B) are false (C) Statement (A) ig true, but statement (B) is false ~ (D) Statement (A) is false, but statement t+ @)is true Paper I‘Total Number of Pages : 32 @ 45, Match the following : 48. The list of voters, number of students in List-I eee a university and the telephone directory some of th les of a. R.A. Fisher L. Rank correlation CG (A) Sampling frames b, Karl Pearson II. Anova aa (B) Sampling unit c, Spearman III. Student’s t Ose nrling distribution luster sampling 4. Gosset “IV. Correlation onan 49. Match the following : a bed List -I List - . Rand 1S dat ymin ae a Random jecondary data sampling 7 @ WLIW I b. Non-random/ Il. Information om wu . sampling / system Ox eae c. Census’ IIL. Cluster 46. If A speaks truth in 20 per cent cases ey sampling and B speaks truth in 40 per cent cases, Gh Soe what is the probability that they would Pees sampling contradict in a particular case ? Codes : (A) 0.8 (B) 0.12 abe d © 032 () 0.44 “mw 1 2 @) wie mw om 41, Research method which is concerned oumwvt with exploring the effect of one variable (IV I 1. 1 on another is known as 50. ‘The list of tech |. The list of technical terms used is called (A) Dependent h aaa (A)_ Abbreviations (® Yeausal research Glossary (©) Exploratory research (O) ‘References (D) Contemporary research () Appendix iar as: ee mea PaperSS jj, Cas Jung in his theory explains thatthe gersonality as the following dimensions. _ personality includes logical reasoning. ji, Personality deals with perception of things in general sense. iii, Personality is based on unconscious inner perception of the things. Codes = (A) i, ii and iii (B) iand ii and iii x) ii and ii 52, Path-goal theory of leadership was developed by (A) Paul Hersey (B) Blake and Mouton (C) Robert House (D) Fielder 53. Assertion (A) : Stress is not simply anxiety or nervous, tension. Reason (R) : Stress is not always due tooverwork. “T Cox (Both (A) and (R) are correct (B) Both (A) and (R) are incorrect (C) (A) is correct, but (R) is incorrect (D) (A) is incorrect, but (R) is correct ‘Total Number of Pages : 32 54, Match the following : List -I List - a. Contingency _i. Kaith Davis school b. Systems school ii. Herbert A. Simon c, Human behavior iii, Joan school Woodward a. Decision theory iv. R. A. Johnson school Codes : a bed (A) ii ii iv, i (B) iii iv i” ii (Chit i ive iti )iv ii i i 55, Methods available for settling disputes (A) Collective bargaining (B) Arbitration (©) Conciliation (DYAll| the above 56. Which one of the following is not the objective of job evaluation ? (A) To know the worth of each job of the organisation (B)-To determine fair and equitable ‘wage structure in the plant, industry and place (C) To ensure utmost job satisfaction to all employees To make the system complex and cannot be easily understood by non-supervisory staff3, According to Bernard, the clements of organisation are j, Communication * ii, Willingness to serve © iii, Common purpose, “ Codes : (A) i, ii and iii are correct “ (B) iand ii are correct (© ii and iii are correct () i, ii and iii are incorrect $ 8, ‘Esprit de corps’ means (A) Treat employees with ‘kindness’ (B) Thinking out and execution of a plan © this is the principle of ‘Union is Strength’ (D) There should be one head and one plan for a group 59, . Assertion (A) : Social responsibility may be taken to mean intelligent and objective concern for the welfare of the society. Reason (R) : Social responsibility has gradually developed and has become widely not accepted notion in the business world. Codes : (A) (A) and (R) are correct Oe and (R) are incorrect (A) is correct, but (R) is incorrect (D) (A) is incorrect, but (R) is correct ‘Total Number of Pages : 32 60. Match the following leadership styles on the grid : List -1 a, Impoverished b. eal ii. 9,9 c. Task . iii. 1,1 d. Team in, 1- Codes : ° a bed List - II 1,9 (A) (B) iii. ii iii ) iv iv 61. The existence of a parallel economy (A) Ensures increasing productive investment (B) Ensures a better distribution of income and wealth (C) Makes the monetary policies less effective (D) Makes the economy more competitive 62. Assertion (A) : “The problem of rural credit is not primarily one of rural credit, it may be said to be one of rural minded credit”. Reason (R) :The Indian economy has yet to come out of rural mentality. Codes : (A) (A) is correct, but (R) is incorrect (B) Both (A) and (R) are incorrect (C)Both (A) and (R) are correct (D) (R) is correct, but (A) is incorrect32 I puch the following ; Column A Column B 1, Nationalisation of 14. 1950 major Commercial Banks 3, Nationalisation of 6 b. 1991 more Commercial Banks 3, Indiaembarks on planned ¢. 19g9 economic development ° 4, India faces balances of —d. 1969 — payment crisis pledges gold to shore up reserves Codes = (a) 1-a,2-b,3-0,4~4 1-d,2-¢,3-a,4—b © 1-¢,2-d,3-b,4-a (D) 1-b,2-a,3-c,4-d 44, Match the items of Column = I with the items in Column — IT and suggest the correct code : Column -1 Column - I a. Interbank call i, Money market market b. Commercial ii. Promissory bills note ©. Commercial iii. Short-term paper market maturity 4. Treasury bills iv. Government uo papers Codes : abe da (Ai ii iv iii ni ii GD ©i ii iv ii O)iv ii i i Rane = ‘Total Number of Pages : 32 65. Which of the following risk is/are covered by BASEL -I? i. Credit risk ii, Market risk iii, Reputation risk iv. Operational risk Select the correct answer from the following options : (A) Only i and ii (B) Only i and iv 3 (©) Only i, iii and iv (D) All are correct 66. Match the following List —1 with List - II: List -I List - 11 (Name of securities) (Type of securities) a. Bonds of Land i. Semi-government Development securities Banks b. Treasury Bills ii, First order securities c. Shares of aii, Personal Public Lid. Co. securities Codes : iii iiiertion (A) : The EXIM policy is jiberal, market-oriented and favours global trade. Reason (R) : GATT has played a significant role in the liberalization of the economy. Codes (A) Both (A) and (R) are true and (R) )sthe correct explanation of (A) (By Both (A) and (R) are true, but (R) is not a correct explanation of (A) (© (A) is true, but (R) is false (0) (A) is false, but (R) is true oh 8, Lead Bank System was started on the recommendation of (A) Raja Challaiah Committee (B) Kelkar Committee (C) Nariman Committee (D) Malhotra Committee 69. According to 14" Report of 2% ARC which of the following is/are the core principle/s of Financial System in India ? a. Focus on results < b. Adopting modern financial management practices ~ c. Budgeting to realistic + (@yfansparency and simplicity Select the correct answer by using code given below : (A) a7 S. c,d“ a Wa, c,d Cc ) a,b, c,d ‘Total Number of Pages : 32 70. Capital adequacy norm helps the banks : i, For strengthening capital base of banks. ii. For sanctioning more loan. Codes : (A) Both i and ii are correct (B) Both i and ii are incorrect (C) iis correct, but ii is incorrect (D) iiis correct, but i is incorrect 71. The practice of going after a large share of a smaller market is (A) Undifferentiated marketing (B) Differentiated marketing (© Concentrated marketing (D) Turbo marketing 72. Match the following : Part-A 1. Advertising Part-B a. Print Ads 2. Sales promotion b. Couponing 3. Personal selling c. Tele marketing 4. Publicity ~ d. Print Media Codes : 1234 oO b cH d@ @c a b d (be ad @Mdc¢ bra32 sot aw 3 = | 13, Which ofthe following seps of purchase decision process is in sequence 9 1, Problem recognition 2. Search for alternatives , 3. Evaluation of alternatives 4, Purchase action : 5.’Post purchase action Codes : (13 @)1 2 Q2 1 14, Assertion (A) : High customer expectations lead to dissatisfaction as product performance never matches them. Reason (R) : Product performance is always customer specific. Codes : (A) Both (A) and (R) are correct (B) Both (A) and (R) are incorrect (C) (A) is correct, but (R) is incorrect (D) R) is correct, but (A) is incorrect 245- 35° 34 457 wow rn 18, The process of gathering, filtering and analyzing information relating to marketing environment is known as (A) Marketing research (B) Marketing intelligence (© Environmental scanning () Environmental analysis 25, Total Number of Pages : 32 76. Match the following List ~ I with those of List~ II and indicate the correct combination from the codes given below : List -I List - IT a. Everitt M. Rogers i. Service quality model b. J.D. Power ii, Three types of marketing for services c. Parasuraman, Quality Zeithml and rating Berry of automobiles . Gronroos iv. Diffusion of innovation Codes : abe a A ii i ii . (Bi it iti Oi i iv (D) iv iii i 77. Consider the following statements and find out the correct alternative from the codes given below : i, The product management system often turns out to be costly. ii, When customers belong to different user groups with distinct buying preferences and practices, a market segmentation organization is not suitable. iii. Advertising department has the closest interface with the finance department of the company. Codes (A) i and ii are correct (B) ii and iii are correct (C) Only iis correct (D) All are correct#33 “s DAGMAR approach in marketing ig ysed to measure (A) Pablie relations (B) Advertising results (©) Selling volume (0) Consumer satisfaction ‘a, Statements : 1, Most of the big companies outsource their marketing research activities, IL Unprofitable customers who defect: to 4 competitor should be encouraged todo so. Codes = (A) Both are correct (8) Both are incorrect (©) Lis correct, IT is incorrect (D) I is correct, I is incorrect {. Demographic segmentation includes 74. Age and life cycle 7 b. Income and social class ~¢. Generation and gender 4. Geography and income Codes : (A) a, b and c only (8) aand b only (©) cand b only ©) b, cand d only ” ‘Total Number of Pages : 32 81. An agreement to do an impossible act is (A) Mlegal (B) Voidable at the option of the promisor (C) Voidable at the option of the promisee (D) Void 82. The responsibility of the finder of goods is the same as of a (A) Owner (B) Bailee (©) Trustee (D) Pledgee 83. Match the following : List -1 List - 11 a, Sec. 124 of I. Bailment Contract Act b. Sec. 126 of IL. Qualification of Contract Act agent c. Sec. 148 of — III. Contract of Contract Act Guarantee d. Sec. 184 0f IV. Contract of Contract Act Indemnity Codes : abed mv o (B)U I ml Iv ©Owmr wu I u witassertion : A minor can Sealy to the benefits of a firm. reasoning : A minor cany, full-fledged partner in q Pp firm. Codes : (A) Both assertion and reaso 7 correct (B) Both assertion and reasoning are not correct be admitted Partnership Not be a artnership ning are (© Assertion is correct, but re 3 is not correct, (0) Assertion is not correct, but reasoning is correct asoning & Competition Act is the successor of (A) FERA (8) MRTP Act (©) POTA (D) Competition Council Act {6 Whatis the fee to be paid by information seeker under RTI Act 2 (A) Rs. 100 (B) Rs. 1,000 (© Rs. 50 (D) Rs. 10 5. The use of information and ideas Protected by IPR are of (A) Cultural value (8) Social value (C) Commercial value ©) Moral value Abill of exchange contains a/an 4) Conditional undertaking g | ©) Conditional order * | © Unconditional undertaking Waa Unconditional order 0) 29 | | | 89. 90. 91, 92. Ss 93. ‘Total Number of Pages : 32 Minimum paid up share capital in case of a private company is (A) Rs. lakh (B) Rs. 10 lakh (©) Rs. 25 lakh (D) Rs. 100 lakh ‘What is the term of copyright for an author of a book ? (A) 100 years (B) The life of the author (C) The life of the author plus 60 years (D) The life of the author plus 50 years Statement 1 : The objective of corporate taxation is to maximize corporate wealth. Statement 2 : Providing tax deductions, tax exemptions and tax rebate under corporate taxation increases tax avoidance. Indicate whether thi or false. (A) Both the statements are true (B) Both the statements are false (C) Statement ‘1’ is true, but ‘2’ is false (D) Statement ‘1 is false, but ‘2’ is true le statements are true The problem of ‘Double Taxation’ in Tnternational Trade can be overcome by (A) Bilateral agreement (B) Unilateral agreement (C) Group country agreement (D) Market agreement Income which is not chargeable to tax under the head “Income from other sources” is (A) Income from dividend (B) Rental income on hii or furniture. (C) Income from winning lotteries/ crossword puzzles (D) Interest received on fixed in public sector banks ie : Paper Til ired machinery depositsaS ‘94, Personal Income Tax is the ex; (A) Proportional tax (B) De-gressive tax (©) Progressive tax (D) Regressive tax ‘ample of is, Income deemed to accrue or arise in India is taxable in case of (A) Resident only (8) Both ordinarily resident and NOR (©) Non-resident (D) Ordinarily resident 96. Which of the following is not a capital expenditure ? _ (A) Salary paid to the Government Employees ~ (B) Purchase of a machine from outside India (C) Repayment of loan taken from the IMF (D) Interest paid on National debt 97. Which taxes come under the divisible pool, to distribute the tax revenue to the state governments as per the recommendations of the Finance Commission of India ? (A) All indirect taxes only (B) All direct taxes only (C) Both direct and indirect taxes (D) Personal income tax and corporate income tax 98. Cess under Income Tax Act is not levied on (A) With specific objective to overcome the problem (B) Should not be more than 5% | (C) Is only for a short period of time (D) By reducing the gap between haves and have-nots ‘Total Number of Pages : 32 99, Statement A : According to Section 145, income chargeable under income from other sources shall be computed only on cash basis of accounting, Statement B : Income from machinery let out on hire is taxable under income from other sources. Fo Statement A is true, but B is false (B) Statement A is false, but B is true >M(C) Both the statements are false (©) Both the statements are true 100. Match the following : List -1 a. Long term List - 11 i. Section 48 capital asset b. Capital gain i, Section 229A) exemption . c. Cost of iii, Section 10 inflation index d. Capital gain on transfer of Zz iv. Section 54B agricultural land Codes : a~ii, b—ii, c~i,d-iv » (B) a-ii, b~ ili, c ~iv,d- (© a-iii,b (D) a-i,b~ iii, c~iv, d-ii ii,c-iv,d- Paper I