2017 August Commerce – Paper III

  1. Shareholders, Employees, Customers are known as……………
    (a) Owners
    (b) Borrowers
    (c) Creditors
    (d) Stakeholders
  2. In the recently revised tax structure, GST stands for the………….
    (a) General Structure of Tax
    (b) Goods and Services Tax
    (c) Genuine standard Tax
    (d) Goods Plus Service Tax
  3. The consumer protection Act came into force in the year:
    (a) 1984
    (b) 1985
    (c) 1986
    (d) 1988
  4. The process of reducing the Equity participation in the public sector company by the government is known as:
    (a) Globalization
    (b) Privatization
    (c) Liberalization
    (d) Modernization
  5. The Re-named Planning Commission “NITI Ayog”, NITI stands for………….. .
    (a) National Institute of Transparent India
    (b) National Institute of Training in India
    (c) National Institute of Transforming India
    (d) None of the above
  6. A company issued shares of Rs.10, on which Rs.6 is called up and a shareholder has not paid the call of Rs.3. The amount credit to share capital in respect of such share will be:
    (a) Rs. 10
    (b) Rs. 7
    (c) Rs. 6
    (d) Rs. 3
  7. After the debentures are redeemed, the balance in the sinking fund account is transferred to:
    (a) Debenture Account
    (b) General Account
    (c) Profit and Loss Appropriation Account
    (d) Capital Reserve
  8. Advance Payment of Tax is in the nature of :
    (a) Revenue Expenses
    (b) Prepaid Income
    (c) Liability
    (d) Prepaid Expenses
  9. ………. Is an example of direct cost.
    (a) Secondary packaging
    (b) Primary packaging
    (c) Carriage outward
    (d) Stationery expenses
  10. When amalgamation is in the nature of merger, the accounting method to be followed is:
    (a) Consolidated method
    (b) Purchase method
    (c) Equity method
    (d) Pooling of interest method
  11. The economist who define economics as “The science which studies human behavior as a relationship between ends and scarce means which have alternative uses” .
    (a) Lionel Robbins
    (b) E.A.G. Robinson
    (c) Alfred Marshall
    (d) J.M. Keynes
  12. If demand is inelastic and price increase, then :
    (a) Total revenue will fall
    (b) Total revenue will be unchanged
    (c) Total revenue will increase
    (d) Total revenue will change proportionately
  13. Which one is a related statement?
    (a) Organization and interest
    (b) Land and Rent
    (c) Labor and profits
    (d) Capital and wages
  14. Assertion (A): A monopoly firm’s revenue curve is downward sloping from left to right.
    Reason (R) : The monopoly firm does not enjoy the freedom both, to fix the price to be charge and the quantity to be sold according to its whims and fancies.
    (a) Both a and r are true
    (b) Both a and r are false
    (c) a is false, but r is true
    (d) a is true, but r is false
  15. Product differentiation is:
    (a) A form of price competition
    (b) A form of non-price competition
    (c) A form of price discrimination
    (d) None of the above
  16. Which one is the correct order of statistical data?
    (a) Collection, Analysis, Presentation and Interpretation of data
    (b) Interpretation, Analysis, Presentation and collection of data
    (c) Collection, Presentation, Analysis and Interpretation of data
    (d) Analysis, Collection, Interpretation and Presentation of data
  17. Questionnaire technique of data collection can be used when the respondents are:
    (a) Literates
    (b) Illiterates
    (c) Literates and illiterates
    (d) None of the above
  18. If the sample size increases, the sampling error:
    (a) Increases
    (b) Decreases
    (c) Remains constant
    (d) May increase or decrease or remain constant
  19. We can estimate the value of “Y” for a given value of “X” by:
    (a) The regression equation of Y on X
    (b) The regression equation of X on Y
    (c) The regression equation of Y and X
    (d) The regression equation of X or Y
  20. The E-Commerce domain that involves business activity initiated by the consumer and targeted to business is known as:
    (a) Business to Consumer (B2C)
    (b) Consumer to Business (C2B)
    (c) Consumer to Consumer (C2C)
    (d) Business to Business (B2B)
  21. Management means forecasting, planning, organizing, directing, coordinating and controlling, Who said this?
    (a) Peter F.Drucker
    (b) Henri Fayol
    (c) Parkins
    (d) F.W.Taylor
  22. ……….. refer to those needs satisfaction of which lead to self-confidence and prestige.
    (a) Self-actualization needs
    (b) Safety needs
    (c) Safety needs
    (d) Physiological needs
  23. Plan made in the light of competitors plan is known as:
    (a) Policy
    (b) Procedure
    (c) Strategy
    (d) Undercover Plan
  24. Grapevine is associated with:
    (a) Formal Communication
    (b) Informal Communication
    (c) Horizontal Communication
    (d) Vertical Communication
  25. Which one is the most important principle of Business Ethics?
    (a) Principle of unity of direction
    (b) Principle of proportional judgment
    (c) Principle of scalar chain
    (d) Principle of span of control
  26. In a broader sense, marketing communication includes……………
    (a) Product
    (b) Price
    (c) Place
    (d) All of the above
  27. What is relevant to place variable of marketing mix?
    (a) Branding
    (b) Price Penetration
    (c) Sales personnel Motivation
    (d) None of the above
  28. Branding decisions are based on:
    (a) Market Research
    (b) Assessment of customer’s need
    (c) Cost of product
    (d) Both a and b
  29. Which is used for short term sales achievement?
    (a) Personal selling
    (b) Advertising
    (c) Sales Promotion
    (d) Public Relations
  30. The method for achieving maximum market response from limited marketing resources by reorganizing differences in the response characteristics of various parts of the market is known as:
    (a) Market Targeting
    (b) Market Positioning
    (c) Market Segmentation
    (d) Market Strategy
  31. Capital Budgeting Decision are:
    (a) Reversible Decision
    (b) Strategic Investment Decision
    (c) Short term Investment decisions
    (d) Tactical Investment Decisions
  32. Generally if the risk involved in a firm is higher:
    (a) Cost of capital will be lower.
    (b) Cost of capital will be higher.
    (c) Cost of capital will be neutral
    (d) None of the above
  33. Long-term sources of finance also required for……….of working capital.
    (a) Economical
    (b) Costly
    (c) Beneficial
    (d) None of the above
  34. According to which of the following, the firm’s market value is not affected by capital structure?
    (a) M.M. Hypothesis
    (b) Net Income View
    (c) The Traditional View
    (d) None of the above
  35. Match the following:
    (a) Convertible Debentures  (i) Holders have the right to recover their money from the sale of Assets
    (b) Secured Debentures (ii) Deducted from the profits of the company
    (c) Interest on the Debentures  (iii) Permanent Liability on the company
    (d) Irredeemable Debentures (iv) The holders of such debentures are given the option to exchange them for share.

    Select the proper code:
    Codes:
    a, b, c, d
    (a) i, ii, iii, iv
    (b) ii, iv, i, iii
    (c) iv, i, iii, ii
    (d) iii, iv, ii, i

  36. Career programs largely depends on:
    (a) Performance
    (b) Experience
    (c) Qualifications
    (d) All of the above
  37. Match the following:
    List I  List II
    (State Regulations of Wages) (features)
    (a) Minimum Wages Act, 1948 (i) It has to study various factors before making any recommendations
    (b) The payment of Wages Act, 1936 (ii) The minimum bonus to be paid has been raised from 4% to 8.33 %
    (c) The payment of Bonus Act, 1965 (iii) It did not define minimum wages nor specified any norms for its determination
    (d) Wages Boards (iv) Its objective is to provide for regular payment of wages without any authorized reduction

    Codes:
    a, b, c, d
    (a) iv, i, ii, iii
    (b) iii, iv, ii, i
    (c) ii, iii, iv, i
    (d) i, ii, iii, iv

  38. Condition essential for sound industrial relation is/are:
    (a) Existence of strong will organized and democratic employees unions.
    (b) Existence of sound and organized employees unions.
    (c) Sprit of collective bargaining and willingness to resort to voluntary negotiation.
    (d) All of the above
  39. “Morale is a readiness to co-operate warmly in the tasks and purposes of a given group or organization” is the statement given by:
    (a) Alldrich
    (b) Vitels
    (c) Ackoof
    (d) Peter F.Drucker
  40. Workers compensation programmes have a serious defect. They are those laws attempt to compensate employees for accidents and illness that have:
    (a) Occurred
    (b) Claiments
    (c) Will occur
    (d) Proofs
  41. Which bank merged with ICICI Bank in the year 2010?
    (a) Punjab National Bank
    (b) Bank of Rajasthan
    (c) J&K Bank
    (d) None of the above
  42. SIDBI Act was passed in the year…………….
    (a) 1989
    (b) 1990
    (c) 1991
    (d) 1992
  43. Match the following:
    List I List II
    ( Institution )  ( Year of Establishment )
    (a) IFCI  (i) 1948
    (b) IDBI  (ii) 1955
    (c) UTI (iii) 1962
    (d) ICICI (iv) 1964

    Codes:
    a, b, c, d
    (a) iii, ii, iv, i
    (b) iv, i, ii, iii
    (c) ii, iii, i, iv
    (d) i, iv, iii, ii

  44. Match the following:
    List I List II
    ( Function of RBI ) ( Illustration )
    (a) Central Banking Function  (i) Lending of Money
    (b) Prohibitory function  (ii) Bank cannot pay interest on its deposits
    (c) General Banking Function  (iii) Deposit Insurance
    (d) Developmental function (iv) Regulation of foreign exchange

    Codes:
    a, b, c, d
    (a) iv, ii, i, iii
    (b) i, iii, ii, iv
    (c) ii, iv, iii, i
    (d) iii, i, iv, ii

  45. Match the following:
    List I  List II
    (a) Commercial Bank  (i) Post Office
    (b) Industrial Bank  (ii) NABARD
    (c) Agricultural Bank (iii) State finance corporation
    (d) Savings Bank (iv) Canara Bank

    Codes:
    a, b, c, d
    (a) iii, iv, i, ii
    (b) i, ii, iv, iii
    (c) iv, iii, ii, i
    (d) ii, i, iii, iv

  46. The Apex body for the Export promotion of the country is:
    (a) Indian Institute of Foreign Trade
    (b) Indian Institute of Export Trade
    (c) Indian Institute of Export Promotion
    (d) Federation of Indian Export Organization
  47. Special Drawings Rights (SDR) are issued by the :
    (a) World Bank
    (b) R.B.I.
    (c) I.D.A.
    (d) I.M.F.
  48. Foreign exchange and foreign currencies in India are governed by:
    (a) R.B.I.
    (b) Banking Regulation Act
    (c) FEMA (Act)
    (d) SEBI Act
  49. A current account surplus represents:
    (a) Net Foreign investments
    (b) Net Foreign drain
    (c) Disinvestment Abroad
    (d) None of the above
  50. Match the following and find the appropriate choice from options:
    List I (Theory)   List II (Author)
    (a) Overlaping product Ranges  (i) Michael Porter
    (b) Product cycle theory (ii) Paul Krugman
    (c) Internal and External theories of scale  (iii) Raymond Vernon
    (d) Competitive advantage of Nation (iv) Linder

    Codes:
    a, b, c, d
    (a) i, iii, iv, ii
    (b) iv, iii, ii, i
    (c) i, ii, iii, iv
    (d) iii, iv, ii, i

  51. Commercial paper is issued by firms to raise…………
    (a) Long- term funds
    (b) Medium- term funds
    (c) Short- term funds
    (d) None of the above
  52. The most common sources of Euro issues include:
    (a) American Depository Receipts
    (b) Global Depository Receipts
    (c) Both a and b
    (d) None of the above
  53. ……… is capital Market Regulator in India.
    (a) Bombay stock Exchange
    (b) National stock Exchange
    (c) Ministry of corporate Affairs
    (d) Securities and Exchange Board of India
  54. Working capital is also known as:
    (i) Revolving Capital
    (ii) Circulating Capital
    (iii) Equity Capital
    (iv) Debt Capital
    Select the correct answer form the following:
    (a) iii and iv
    (b) i and ii
    (c) Only iii
    (d) i and iii
  55. Bonus shares are usually issued out of:
    (a) Accumulated profits
    (b) Reserve created for specific purpose
    (c) Reserved created out of revaluation of assets
    (d) None of the above
  56. What is customer value?
    (a) Ratio between the customer’s perceived benefits and the resources used to obtain these benefits.
    (b) Excess of satisfaction over expectation
    (c) Post purchase dissonance
    (d) None of the above
  57. Which element of the promotion mix do wholesalers primarily rely on to achieve their promotional objectives?
    (a) Advertising
    (b) Trade Promotion
    (c) Personal Selling
    (d) Direct Marketing
  58. What is the basis for segmenting vitamin market?
    (a) Age
    (b) Place of distribution
    (c) Formulation
    (d) All of the above
  59. Needs for goods and services are more homogeneous in:
    (a) Industrial Market
    (b) Consumer Market
    (c) Domestic Market
    (d) None of the above
  60. Customers being able to buy product and services on the internet is a result of:
    (a) E- business
    (b) E- marketing
    (c) E- Commerce
    (d) E- purchasing
  61. Training is a:
    (a) Current process
    (b) Temporary process
    (c) Regular Process
    (d) Continuous process
  62. Match the following :
    List I List II
    (Concepts )  (Objectives)
    (a) Wages and salary administration  (i) Engage the leadership in supporting the development of high potential leaders
    (b) Succession planning (ii) To reduce employee grievance
    (c) Fringe benefit (iii) To retain the present
    (d) High Morale  (iv) To improve human relations

    Codes:
    a, b, c, d
    (a) iv, iii, ii, i
    (b) ii, i, iv, iii
    (c) iii, i, iv, ii
    (d) iv, i, ii, iii

  63. Strike undertaken without the consent of the unions is called:
    (a) General Strike
    (b) Sympathetic Strike
    (c) Unofficial Strike
    (d) Bumper Strike
  64. Performance appraisal is:
    (a) Morale boosting
    (b) Training and development activity
    (c) Job analysis
    (d) All of the above
  65. How can accidents be reduced in industry?
    (a) By proper training
    (b) By installation of safety equipments
    (c) By safety programme
    (d) All of the above
  66. In India……… has predominant share in the debt market.
    (a) Government Securities
    (b) Corporate Deposits
    (c) Corporate Equity
    (d) Global Depository Receipts
  67. Bill of lading is issued by:
    (a) Indian Commercial Banks
    (b) Foreign Banks
    (c) Shipping Company
    (d) Exporters
  68. The Devaluation of currency of country is down when:
    (a) It has adverse balance of payment
    (b) It has favourable balance of payment
    Codes:
    (a) Both a and b are true
    (b) Both a and b are false
    (c) Only a is correct
    (d) Only b is correct
  69. India is not associated with:
    (a) SAARC
    (b) NAFTA
    (c) BRICS
    (d) None of the above
  70. The IMF derives its finance from:
    (a) General Resource Account
    (b) Special Disbursement Account
    (c) ESAF Trust
    (d) All of the above
  71. Statements I : Tax planning aims at reducing tax liability to the minimum.
    Statements II : Tax management aims at complying the provisions of law.
    Which one of the following is true:
    (a) Statement I is true and Statement II is false
    (b) Statement II is true and Statement I is false
    (c) Both the Statement I and II are true
    (d) Both the Statement I and II are false
  72. Which section of Income Tax Act deals with penalties due to failure to keep and maintain information and documents in respect of international transactions ?
    (a) 221(1)
    (b) 221(2)
    (c) 271CA
    (d) 271AA
  73. Match the items of List I with List II:
    List I  List II
    (a) Section – 10A  (i) Tax incentives in case of a newly established 100% Export – Oriented Undertaking(EOU)
    (b) Section – 80IE (ii) Tax incentives in case of newly established units in Special Economic Zone (SEZ)
    (c) Section – 10AA  (iii) Tax incentives in case of newly established industrial undertakings in free Trade Zone (FTZ)
    (d) Section – 10B  (iv) Tax incentives in case of profits and gains of certain undertakings in North Eastern states

    Codes:
    a, b, c, d
    (a) iv, i, iii, ii
    (b) ii, iii, i, iv
    (c) iii, iv, ii, i
    (d) i, i, iv, iii

  74. Match the items of List I with List II:
    List I  List II
    (a) Tax Evasion (i) Availing deductions under section 10A of Income Tax Act
    (b) Tax Avoidance (ii) Understatement of income
    (c) Tax Administration  (iii) Misinterpreting the provisions of the Income Tax Act
    (d) Tax Planning  (iv) Making suitable arrangements of TDS

    Codes:
    a, b, c, d
    (a) i, ii, iii, iv
    (b) ii, iii, iv, i
    (c) iii, iv, i, ii
    (d) iv, i, ii, iii

  75. Section 80E of Income Tax Act deals with:
    (a) Donations to charitable institutions
    (b) Donations for scientific research
    (c) Medical Insurance Premium
    (d) Repayment of loan taken for higher education

    Answer Key

    1 (d) 2 (b) 3 (c) 4 (b) 5 (d) 6 (c) 7 (b) 8 (d) 9 (b) 10 (d) 11 (a) 12 (c) 13 (b) 14 (a) 15 (b) 16 (c) 17 (a) 18 (b) 19 (a) 20 (b) 21 (b) 22 (c) 23 (c) 24 (b) 25 (b) 26 (d) 27 (c) 28 (d) 29 (c) 30 (c) 31 (b) 32 (b) 33 (a) 34 (a) 35 (c) 36 (a) 37 (b) 38 (d) 39 (z) 40 (a) 41 (b) 42 (a) 43 (d) 44 (a) 45 (c) 46 (d) 47 (d) 48 (c) 49 (a) 50 (b) 51 (c) 52 (c) 53 (d) 54 (b) 55 (a) 56 (a) 57 (b) 58 (a) 59 (a) 60 (b) 61 (d) 62 (c) 63 (c) 64 (d) 65 (d) 66 (a) 67 (c) 68 (c) 69 (b) 70 (d) 71 (c) 72 (d) 73 (c) 74 (b) 75 (d)