Solued Scanner GA Foundation Paper - 48 (New Syilabus)| 1180 Past YEAR QUESTIONS AND ANSWERS [1] ___ tsa feature of partnership form of business, {a) Separate legal entity from the rm {0) Limited scope for ralsing finance {6) The laity of a partner Is limited to his contfbution to capital (0) Rogistation of partnership is compulsory Answer: {@) Falowing are the essential features of a partnership form of business: (Can be started by minimum 2 persons. (i) Can have maximum 10/20 persons. (ii) Scope for raising finance is Kmted. (9) Formed for earning prot (©) Liabilty ofa pariners is unlimited, Registration is voluntary. (vil. Thete exist a princioat- agent relationshi Thus, among the given options "tl ‘sa feature of partnership form of Scanned with CamScanner[3] Which one of the following does not have perpetual s (a) Company (b) Statutory Corporation (©) Sole Proprietorship Co-operative Society Answer he death / insolvency of any 01 affects its continuity. y Is separate {rom its members. sole proprietorship are formed like a corporate form of 1us, have perpetual succession is uni (0) Co-parceners db (4) Neither a and b ted, (a) in HUF, liability of all the co-partners is enabling more efficient management. Thus, the liability of Karta is unlimited, {5} In relation to business organisation structure, which one of the following is easy to form and wind up? (a) A company (c) Statutory corporation Answer: (b) One of the advantages of sole proprietorship form of business is that no legal formalities are required for its formation. It can be started with @ small amount of capital. larly, its winding up also is completely dependant upon sole proprietor. Thus, sole proprietorship form of business have easy formation and winding up. “ (6] Which is not a feature of LLP? (a) Separate legal entity (b) All LLP have existence fo (c) Partners in an LLP (0) Inan LLP, par fed except Karta, thus, (0) A sole proprietorship (d) Public enterprises. Answe' (b) Following are the features of a limited Body corporate. Separate Legal Entity. Perpetual Succession Easy format Flexible operations. No minimum capital contribution Easy dissolution Low cost of formation. No partner liable for other partner's act No restriction on maximum number of partners. Mutual rights and duties of partners are governed by an LLP agreement. Thus, among the given options, option Bie." {or fixed period’ is not a feature of LLP. [7] Gas Authority of india Limited is an example of: (a) Limited liability partnership (b) Private limited company (©) Public enterprise (8) None of the above. Answer: (c) Public enterprises reters to business organisation owned, managed and controlled by local, central or State Government. Wr of the investment is made by government itself. _ Example: Gas Authority of India Limited, 4 bility partnership: Scanned with CamScanner LLP have existence Tools, etc.it 2nd BG) y p2tnerehip has, Ie (aine5) [aa 154 |m [Solved Scanner CA Foundation Papar - 48 (New Syllabus) Ss Assets, a 2d Contre, Me lab Parate . : = Thus, Limited Liateution in =, OF the 298) habioroing (1 nin om of buss aretha soar ety? “ entity, different fron ity Partnaren Partner would be at members are ia P is samen ober. Inay, oh 8 eparate legal © entity and its Answer: Voluntary Association Separate legal entity ig) The choice of an * depends upon: SPPropriate form of busine: |. Ease of formation Continuity and Stability lil, Liability aspects Correct option is — (a) land I ¢ | and Ill nd II Answer: (d) Before selecting any form of business organisation, one must consider the following factors: i) Easy formation SS organisation largely Cash Trading Fixed Rate of Return of owner - x . Partnership, as the name ; (@) Under Limited Liability a , a alt * protection within the partnership. partners have a (9 Partners Scanned with CamScannerae ee oS ee [Chapter = 1] Introduction to Business and BCK| m | 4.1155 4.1156 | m [Solved Scanner CA Foundation Paper - 48 (New Syllabus)] [13] Who can be the head of Joint Hindu Family business? (a) Karta (b) Co-parcener (©) Manager (@) Director Answe (a) According to the Hindu Law of Society, only Karta ie. the eldest male member of the Hindu family can be the head of Joint Hindu Family Business. Hence option (a) is correct [14] Members of HUF are known as (a) Partners (b) Shareholders (©) Members () Co-parceners Answer: (d) HUF is a most peculiar form of business organisation in which the family possesses some in! herited property. Its members are known as Co-parceners. [15] Which amongst the fol (a) Separate legal entity (0) No perpetual succession Answer: (@) Following are the features of a LLP (i) Body corporate (ii) Separate legal entity (it), Perpetual succession (iv) Easy formation (v) Flexible operations (vi) No minimum capital contributions (vii) Easy dissolution (vill). Low cost of formation (ix) No partner liable for other partner's act (%) Novestriction on maximum number of partners. (xi) Mutual rights and duties of partners are goverr 19 is a feature of LLP? (b) Uniimited liability (d) Not a body corporate [16] Head of HUF is known as ~ (a) Karta (b) Co-parceners (c) Manager (a) Head Answer: (a) HUF is the most peculiar form of business organisation in which the family possesses some inherited property and the head of the family, known as Karta, who manages its affairs, [17] In case of HUF what are liabilities of Co-parcener and Karta - (©) Karta’s liability is limited while Co-parcener’s li (d) Both have Answer: (b) In HUF, tiat ty of all the co-parceners is limited except Karta, thus enabling more efficient management. Thus, liability of Karta is unlimited and co-parceners is unlimited, 2014- DecemBen ——e (a) €1 Lakh es (b) There is no minimum limit Ps (©) € 4 Crore (0) ©5 Lakh, Scanned with CamScannerg] The Karta in Joint (e) Unlimited tia (©) Limited fiability Answer: [2015 - JUNE 120] Which corporation h; a separate legal cng aa Characteristics ie, of a partnersh (a) Limited Liability p, tship and of (0) Company (c) Partnership (d) Statutory Body. Answer: (a) A Limited Liability Partnership, po . Popularly known as LLP combin the advantages of both the company i.e. separate legal entity and partnership into a single form of organization. 2015 - DECEMBER } . 21] What is Karta's (a) Limited ‘arinership (LLP) (©) Unlimited (@) Limited Answer: (a) The liability of each member of the hindu undivided family business ited to the extant of his share in the business while karta has lity, 2016 - JUNE [23] The liability of each member of the Hindu Undivided Family business is: {a) Limited to a sum as declared by him in general public (b) Unlimited (c) Limited to the extent of his share in the business except karta (2) Limited to the extent of his share in the business including that of karta Answer: (c) The liability of each member of the Hindu Undivided Family business. is limited to the extent of his share in the business except karta, This makes the Karla to manage the business in the most efficient manner, ith CamScanner Ti Scanned wiAnswer: (c) A company is a voluntary association of people carrying on business. It is a Artificial Legal person whose management is separated from ownership. Ownership lies with shareholders who contribute share capital and management lies with the Board of Directors who oversee the affairs of company. [25] In case of Hindu Undivided Family, the individual share of.each co- pawener: (a) depends upon his efficiency (b) keeps changing on the death or birth of co-parcener (c) is fixed (@) keeps changing annually Answer: (c) In a Hindu Undivided Fami parcener is fixed but member in the fa [26] The size and structure of business depend on many factors which (are): (2) In the control of enterprises (0) Arbitrary and random (©) Range from internal to external factors which are beyond the control of enterprises (4) Beyond the control of enterprises. Answer: (@) The Size and Structure of Business depend upon factor such as: (2) District Ownership (b) Lawful Business (0) Separate Status (d) Deals in Goods and Services (e) Risk involvement They are all in the [27] Limited Liability (a) The Cc Business, the share of each Co- ble to change due to death or birth of any Answer: (b) Limited Liability Partnership, the world wide recognized form of business organisation has been introduced in India by the way of Limited Liability Partnership Act, 2008. 2017 - JUNE [28)'Sole proprietary business is suitable when market is: (a) Non Existent (b) National (c) Local (d) Global Answer: - {c) The sole proprietorship business is most suitable where the market Scanned with CamScanner partnership is constituted under. Act, 2013 (b) Limited Liability Partnership Act, 2008 (c) Partnership Act, 1932 (d) None is applicable Answer:2018 - NovemBER | [33] The Logo of Institute of {:2] Which of the following is correct? (a) Max. no. of members is (b) Freely transferable shares ir Private limited company. 1m [Solved Scanner GA Foundation Paper - 4B (New ‘Syliabus)) Chartered Accountants of India (ICAI) is in case of private limited company in case of private limited company. :) Max. no. of members - 260 (a) None of the above. Answer: maximum no. of members can be f f Private ited 0 roe sciRe Se transferable but subject 200. Shares in a p [35] Which is not a merit of LLP? the Foreign Exchange Regulation Act (FERA), 1973. Scanned with CamScanner (4 mark) (1 mark) (c) Foreign Exchange Management Act{FEMA), 1999 that replaced| [Chapter = 1] Introduction to Business and BCK|™ | 4.1163 | [: [36] Income tax Act, HUF cannot card which type of [d (a) Profit (b) Salary (c) House Property (d) Other Sources. Answer: (b) According to Income Tax Act, HUF cannot earn salary of any kind. [37] HUF ___ _ be formed by a group of people who do not constitute a family. (a) cannot [ (b) can (c) should not (d) may Answer: (a) HUF, cannot be formed by a group.of people who do not constitute a family. It can only be formed by a family [38] No. of directors in a private company. - (a) 2 (b) 3 (o) 5 ud . ; (d) 7 ‘ (4 mark) (1 mark) (1 mark) Scanned with CamScanner(ew Syilabus)] a7] Solved Scanner GA Foundation Paper - 48 (1 mark) gths, weaknesses, Ork for identitying a ©pportunities and threats that can have anes anazing the internal roduct, place or person, an impact on the viability of a wo E's in PESTLE star Economic and Envir 3] Which of the fol (2) Complex ~ (b) Dynamic (0) Single Faceted (d) Far reaching | of Business environment are as follows: Dynamic. Multi- faceted 1g impact. ing is not a FMCG Company: (b) Colgate ~ (a) Amut (1 mark) Answer: (c) "FMCG Companies, creat and distribute products that are typically bought by consumers: such as Unilever, Procter& Gamble and GSK, -ssentially they more from a retailers shelves to the very quickly) Bajaj is not FMCG Company as it deals in heavy vehicles [5] Demographic environment relates to: (a) Characteristics of population in an area, district, country or in the World, Scanned with CamScanner| [Chapter = 2] Business Environment |= [ 4.1175 [ Answer: (d) Business environment analysis help in: (i) Determining opportunities and threats (ii) Giving direction for growth (iii) Continuous learning (iv) Image Building (v) Meeting Competition 7) describe a framework for analysis of macro environmental factor. (a) SOCIAL . (b) PESTLE (c) POLITICAL (d) MIXED Answer: (b) PESTLE describe a framework for analysis of macro environmental factor. Political, Economical, Social, Technological, Legal environment [8] Which is not a feature of business environment. (a) Simple i (b) Complex (c) Multi fact (d) Dynamic = (1 mark) (a) Features = fa) (1 mark) Scanned with CamScanner4.1183 184 |m | Solved Scanner CA Foundation Paper - 48 (New Syllabus) ying ie correct (a) L&T and Cipla Ltd, are foreign company (b) Nestle and IBM are foreign company () NTPC is a MNC (d) Tata Sons was founded in 1986. (1 mark) Answer: (b) Nestle and IBM are foreign companies whereas L & T and Cipla are Indian Companies. NTPC is a power Company and Tata Son’s was founded in 1868. [5] Which gas company owns India's largest pipeline network? (a) GAIL (India) Lta, oo Mees (1 mark) (0) Bharat Petroleum Corporation Ltd Aer (0) Reliance Industries Ltd. (©) Hea 1 ONGC is not in Ahmedabad but in Uttarakhand, (4) ONGC meek) india. Although the other points are correct, it was established in Answe! 1956 and is an Oil Exploration Company. (a) GAIL owns the country’s largest pipeline network. The company [2] SBI Bank has following charact owns and operates more than 11,000 km. long cross country a) it was incorporated in 1806 natural Gas pipeline in India. Scanned with CamScanner (0) § associate banks and Bhartiya Mahila Bank were merged with [6] _ SBI was formerly known as: State Bank of india with effect from 1 April, 2017. (a) Bank of Madras (b) Bank of Calcutta (c) thas 14 subsidiaries. (©) Imperial Bank (d) All of the above. (1 mark) Answer = Answer: (c) SBI traces its ancestry to British In (d) SB/ has all the following characteristics, it was incorporated in 1806, of India, to the found has 14 subsidiaries and 5 associate banks and Bhartiya Mahila e Bank were merged with State Bank of India w.ef 1.04.07. 421 Who founded Wipro Lid. (a) Azim Premji (b) Mohamed Premji (c) Sam Watson (@) Steve Jobs. Answer: (b) WIPRO Company was ‘Amainer @ small town in JalgaonBusiness Organization |m [4.1185 | [£1186 | m [Solved scanner GA Foundation Paper - 48 (New Syllabus) Intel's core yal, lues are: (a) Customer One era (b) Hard Nn, (c) Quali Passion, Geel isk Takin Answer: . 7 'Y, Quantity, Discipin 202 10 work ‘9 {e) Infosys provides software development, maintenance and independent validation, services to companies in banking, finance, (a) None of { Answer a) insurance, manufacturing and other domains, One of its known products Is “FINACLE” which is a universal banking solution with various modules for retail and corporate banking. company. Its am Risk-Taking, Ri J en did Micros (a) 1990 Pein ts (c) 1995 1991 Answer: ) 1989 fl [13] Which of the following is a product of Apple Company. (a) The Microcoft | i (a) Macbook and Macbook pro 10] Who was the felines csv eae ape (a) Sam Walton ee { N (d) None of these. (0) Bret Biggs Answer: «i a Penner (c) Product Segment of Apple: u uca Maestri 3 arate) Mac, I-pad, -phone, watch, Tv, Music.» Answer: Waimartis____ production? z (a) Walmart was founded by Sam Walton in 1962 and incorporated on (a) Technology October 31,1969 .The company was listed on the New York Stock © (b) Financing Exchange in 1972.» in (c) Food J/77indane LPG is the product of which corporation in India? (a) 1OCL. -(b) A (c) ONGC e Poet | kescsil Answe: z 2018 - NovENBER (1. mark) (a) JOCL has leading energy brar IndaneLPGetc.) #6] What is the global bankin called? (a) Mana (c) Finacle r Scanned with CamScani[Chapter = 3] Business Organization }=[ 4.1187 ] (16] [17] Answer: (d) Generally every corporation has a tagline to differentiate its products from others. As good food good life is a tagline of Nestle Group. Which of the following is State owned company. (a) HDFC Company (6) Coal India Limited (c) GO! Company (d) Cipla Company (1 mark) Answer: (b) Coal India Limited (CIL) is an Indian state-controlled coal minning company. Which is not a American Multinational Technology Company. (a) IBM corporation (b) Microsoft corporation (c) Wipro Itd. (d) Intel corporation Answer: (c) America, Multinational technology companies are: (i) Deutsche Bank (ii), American express (iii) Nestle (iv) Microsoft corporation (v) IBM corporation (vi) Intel corporation _ SG BE sala (1 mark)[—Tehapter = 4] Government Policies for Business [aiies | ([xivee]e Solve Sai CA Foundation Paper - 48 (New Sytabua)] 1M] Goverment hots osponsbiy as private sector handles fy and patty te product and sorices (a) Dowgaton {0} Dyestment {©} Ospiacement {6} Dssmvesimont fanewer (@) Privatization canbe conceptualized in fw types, one oem is detgaton, win says Goverment Koons Mold of responsbiy and private enterprise teres ay rae every of rc ae en, Tore 'S aalve inclement by Government. Delegation may Rappen Svough eanract rancvaoe, grantee. TY MPP Gobalzaton means {@) Taking off estcions in export and import goods and sonvcos| (©) Gradual decrease in government Conmnd and conta over sconomic poles (©) Transter of governmont onnorship to private lands {6) None of hose, ‘anew: (@) Giobateationis ie reemovementot goods. ervees and peopl across the wold ina seamless an negated manner. Hence, Sate kn of eaters Expo and mga goods ah (1 mare) (1 mark) Answer: (6) There is imitation on FO in some sectors this i correct . FDI is ‘not wefor fr al sacors. Some sacors are opened up for 100% land in some I's alowed only upto 26% , 49% oF 51%. Inertain areas, FD! limit has been capped ik, the Insurance Business, JCI stands for: (@) Industral Foreign Corporation of india (©) Industrial Financial Corporation of ngia {6} Industral Finance Corporation of India {6) Incian Financial Corporation for Industries Answer: {6) IFC stands for Industrial Finance Corporation of Inia. a emanates trom decision and decision is taken inne wth identity the righ expression to filin the banks, (@) Policy, Goal (b) Plan, Budget f (©) Goat Pian (6) Budget, Plan « ‘Answer: (6) A policy emanates from devsion and decision is taken | goa, Many a times the torms ike political goal, de 4 used interchangeably, but they donot meen (mark) Scanned with CamScanner— mi akes the trade between two countries more difficult OF 1s expensive. (a) Barrier to entry (b) Barrier to trade (c) Custom duty (d) None of these (1 mark) Answer: (b) Barriers to trade makes the trade between two countries more difficult and expensive then normal 100% FDI investment allowed in which year? (a) 2010 (b) 2012 (c) 2014 i (d) 2004 (1 mark) Answer: : (b) Inyear 2012, 400% Foreign Direct Investmentin India was allowed for some sectors only. le. some special sectors. Gradual decrease in government command and contro! over the economic policies: 7 . (a) Globalization ~ ‘ - Sica Ny itch. (b) Privatization ‘ " (c) Liberalization (d) None of the above. Answer: A {] 9] Scanned with CamScannerScanned with CamScanner [4.1204 | m [Solved Scanner CA Foundation Paper - 4B (New Syllabus)} Answer: {d) Business facilitators are professional who help the business and help create young business and grow them and who advice the business on vanous sources of {inane both domestic as well as | 2018 - May foreign, 4 (i [4] Which of the following is a direct beneliciary of FCI? (a) Agro Based industry ] BRICS stands tor: (b) Sefvice Industry (a) Brazil, Russia, India, China, South Africa (c) Capital & Intermediate Goods Industry India, China, Sweden (a) All of these. (1 mark) {c) Brazil, Russia, India, Columbia, South Ameri Answer: (d) Britain, Russia, India, Columbia, Sweden (1 mark) (a) Some sectors that have directly benefitted from IFCI include = {a) Agro - based industry (textiles, paper, sugar) (b) Service Industry (hotel, hospital) (©) Basic Industry ( Iron-stee! ,etc) ' (a) Capital and Intermediate goods Industry (Electronics, fibers etc.) 48/ The AB! has been vested with extensive power to control and Answer: . (a) BRICS is th acronym for an association of five major emer economies Brazil, Russia, India, China and South Arica. BRICS member are known for their significant influence on regional affairs {2} Which of the following a development bank: 9 (a) NABARD (0) EXIM Bank supervise commercial banking system under the: (c) SIDBI (0) SEBI (1 mark) (a) Reserve Bank of India Act, 1934 Answer: (b) The Banking Regulation Act, 1949 (c) Both (a) and (b) (2) None of the above. Answer: (c) RBlis abi (a) National Bank for Agriculture and Rural Development (NABARD), is an apex development bank in India, headquartered at Mumbai with branches all over India. [3] Business facilitator is/are: (2) Who helps the business (b) Who advises the business on various sources of finance - domestic as well as foreign E , (c) Who create and grow young business (d) Allof these.(Eizo) [lca Renner 6A Foundion Paper New Siebus]] Answer: 5 ) be re of SIDBI © of Micro, Smail and iS Medium enterprises (MSME's) which contribute significantly to “S Economy. 8 10] resents the ratio of liquid assets of the banks to theit = 2 3 2 mak) § wnt rate about bank rate Answer: 8 rent from repo rat (a) Salutatory liquidity ratio represents the ratio ol thebankstotheir A yences the intorce epost tebites. (0) Mignon meene2s the interest ratos on 11] high inten includes money att and ox mart rales by the banks Answer: (mark) } oe (c) RBI influences the interest rates through bank rate (3) RBI Goeth) Answer: Which one of the following is the funding institution. Ane pence jeserve Bank of India Includes money market and forex market (a) RBI (b) IRDAI as it is the sole authority of issue of currency and custodian of (c) IFC! foreign exchange reserve. ; a ‘ i Pejmission to NRI te (¢) Col (1 mark) (a) 27% Answer: (b) 51% (c) Funding Institutions: (c) 76% IFCI (a) 100% SIDBI : EXIM Bank NABARD / z IDB! includes small, mioro or___— enterprise (a) Tiny . i (b) Medium (0) Large (d) MacroScanned with CamScanner .- (____IChapter Sj) Gomm 1 Buslnoes Terminotapias] @ [A1z1S] [4.1214] m [Soloed scanner CA Foundation SSE at occurs when entities ‘created for purpose wo of m es th in of .seets to a new entity weir not a y by an issuer n given to investor sion charged by the 2018 - May ) ! 1 4's of marketing are (a) Pian, Price, Produc () Plan, Production, Place Pr ¥ ) Plan, Price, Proc Pre ileal (9) Product, Price, Plave, Prom broker ing assets, equity, rm and ts subsidiaries into one or more firms through form a new firm. 1g accounts of a parel statement or combining two ger, ot ownership transfer 10 is done through: {b) Oral Communication purchase, me ‘Personal selling” Answer: (4) Comme Written Communication Commercially, business is ali about marke (c) TV and Media (6) Sign Language (4 mari) Pete me cote lamed «P's of Answer: af Bidie ease ne tea nalselng is where businesses use people the sales force) poret ine product after meeting face -10-face-with customer. Hence, kes place through oral communication. [6] The number ot units of given currency that can be Pu of another currency is called (a) Current Ratio {b) Exchange Ratio (d) Dividend (a) Ask/Offer (b) Call (c) Equity F ehe Answer: (a) Bid is the price at which market maker buys from the investor and offer in the price at which he offers to sell the stock to the investor {o) Equity The offer's higher than bi Answer (5 mark) schased!or one unit [3] The process ofestimating future demand byantiipatingwhatbuyersare __(b) Thenumber of units ol given eu kely to do under a given set of marketing conditions: unit of another currency alles oe is a road map of ec (a) Cross Marketing (b) Forecasting (@) Objective (c) Market Development - (0) Vision (d) Internal Marketing (1 mark) Answer: (b) The proc|__ [Chapter = 6] Common Business Terminologi { mount of expense ‘ally Sound companies with paid dividend is known as? (a) Biue ch (b) Bond: (©) Debent: (d) None of the above. Answer: (a) Blue Chips are shares of large, well e Sound companies with an imp dividends. arriers in equals the amount (1 mark) the amount of revenue from sales which exactly (1 mark) [4216 Jom ued Scanner CA Foundation Paper - 48 (New Syllabus) | al commodities Simultaneous buying & selling of ident Only buying of identical commodities (0) Si jontical commodities only (i mark) Answer: (b) Arbitrage is neous purchase and sale of two identical commodi {12)_____ist /an to encourage sale on cash base (a) Cash discount Trade dist Both (a) & (b) 5 None of these (1 mark) Answer: (a) Cash Discount is the reduction in the price of goods given to encourage sale on cash basis. [13] Asset which can be replaced within a year into cash. (a) Fixed (b) Intangible (c) Current (d) Non-current, Answer: (c) Current Assets are the assets for short replaced within a into cash. (14 What PO is oleted to: mi ® ‘Companies firs Scanned with CamScanner| [Chapter ~ 6] Common Business Terminologies) m [ 4.1217 | ( [15] Shares of a company listed on stock exchange are: . Le (a) Securities (b) Listed shares (c) Debentures (a) Bonds (1. mark) Answer: (b) Listed shares are the shares of a company listed on stock i exchange. The company has to pay fees to be listed in the stock { exchange. [16]_____ involves charging a relatively high price for a short period of time. (a) Price skimming * (b) Price sensitivity () USP t {d) Holding price ~ (1: mark) Answer: : ; in (a) Price skimming involves charging a relatively hi time where anew, innovative, ormuch into market. [17] The lowest price at which (a) Bid (b) ASK (c) Cags (d) Sale value E Scanned with CamScanner