Maharastra Set 2018 – January

  1. Which of the Government’s policy in respect of public expenditure and revenue has a significant impact on business ?
    (a) Monetary policy
    (b) Fiscal policy
    (c) Trade policy
    (d) Foreign exchange policy
  2. SEZ stands for ……………… .
    (a) Special European Zone
    (b) Special Export Zone
    (c) Special Environmental Zone
    (d) Special Economic Zone
  3. Which one of the following is not a level of strategies applicable to multiunit business ?
    (a) Corporate strategy
    (b) SBU level strategy
    (c) Functional level strategy
    (d) Divisional level strategy
  4. Which one of the following is not a powerful environmental force the business is confronted with ?
    (a) Consumer movement
    (b) Environmentalism
    (c) Changing competitive environment
    (d) Increasing population
  5. MSMEs contribute about …………….. of India’s GDP.
    (a) 8%
    (b) 19%
    (c) 35%
    (d) 40%
  6. As per which accounting convention ‘contingent liability’ is shown by way of a footnote below the Balance Sheet ?
    (a) Convention of conservatism
    (b) Convention of full disclosure
    (c) Convention of materiality
    (d) Convention of consistency
  7. A company paid Rs.50,000 for a purchase of copyright for five years. The process of writing off this cost over a period of five years is called ……………. .
    (a) Depreciation
    (b) Amortization
    (c) Deferred Revenue Expenditure
    (d) Depletion
  8. Long term solvency is indicated by ………………. .
    (a) Current Ratio
    (b) Debt/Equity Ratio
    (c) Net Profit Ratio
    (d) Turnover Ratio
  9. Which of the following is not an assumption of Break-Even Analysis ?
    (a) Total fixed cost does not change
    (b) Total variable cost does not change
    (c) General price level does not change
    (d) Product mix does not change
  10. The difference between standard cost of standard hours and standard cost of actual hours is called as ……………… .
    (a) Labour rate variance
    (b) Labour cost variance
    (c) Labour efficiency variance
    (d) Labour mix variance
  11. In normal conditions, the demand curve for a commodity :
    (a) slopes upwards from left to right
    (b) slopes downwards from left to right
    (c) is horizontal, parallel to X-axis
    (d) is vertical, parallel to Y-axis
  12. If the demand for a product responds more than proportionate to the change in its price, it is a :
    (a) Perfectly inelastic demand
    (b) Perfectly elastic demand
    (c) Unitary elastic demand
    (d) Highly elastic demand
  13. Which of the following is not a feature of monopolistic competition ?
    (a) Homogenous product
    (b) Large number of sellers
    (c) Selling costs
    (d) Product differentiation
  14. The law of variable proportions of production is applicable in :
    (a) Long period
    (b) Market period
    (c) Short period
    (d) Very long period
  15. With increasing level of output the Average Variable Cost (AVC) of a firm :
    (a) Initially falls, then continues to rise
    (b) Remain unchanged
    (c) Goes on continuously falling
    (d) Goes on continuously rising
  16. Why is random sampling preferred ?
    (a) It is easy to draw
    (b) The results will be statistically valid
    (c) It is a popular method
    (d) It is free from errors
  17. Which of the following is not an ‘absolute measure of dispersion’ ?
    (a) Range
    (b) Standard deviation
    (c) Mean deviation
    (d) Coefficient of variation
  18. The empirical formula used to know mode is …………….. .
    (a) Mean – 2 Median
    (b) 2 Mean – 3 Median
    (c) 3 Median – 2 Mean
    (d) 3 Median + 2 Mean
  19. Which of the following is a parameter ?
    (a) Sample mean
    (b) Population mean
    (c) Size of sample
    (d) Size of population
  20. Suppose an unbiased coin is tossed.
    Event A : Getting head.
    Event B : Getting tail.
    Which of the following statements is true ?
    (a) The events A and B are independent
    (b) The events A and B are mutually exclusive
    (c) The events A and B are independent and mutually exclusive
    (d) The events A and B are neither independent nor mutually exclusive
  21. Tactic is a component of ………….. .
    (a) Planning
    (b) Organising
    (c) Directing
    (d) Co-ordinating
  22. The concept of committee comes within the scope of …………… .
    (a) Directing
    (b) Organising
    (c) Controlling
    (d) Planning
  23. Which one of the following is not Fayol’s principle of management ?
    (a) Unity of Command
    (b) Unity of Direction
    (c) Authority and Responsibility
    (d) Management by Exception
  24. Find the odd one out :The components of planning are :
    (a) Objective
    (b) Procedure
    (c) Decentralisation of authority
    (d) Budget
  25. Motivation is a part of ……………. .
    (a) Communication
    (b) Direction
    (c) Organization
    (d) Plan
  26. Which of the following statements is true ?
    (a) Marketing and selling are interchangeable terms
    (b) Marketing and selling are not inter-changeable terms
    (c) Selling is a broader term which includes marketing
    (d) Advertising includes selling and marketing
  27. Product-oriented concept believes that …………… is the key to success.
    (a) Offer of better and modified products
    (b) Fulfilling expectations of customers
    (c) Focussing on drawbacks of competing products
    (d) Manufacturing products on large scale
  28. Product Life Cycle (PLC) includes mainly four stages such as Introduction, Growth, Maturity and ………………. .
    (a) Prosperity
    (b) Decline
    (c) Depression
    (d) Inflation
  29. In the buying decision process,……………….. is the first step.
    (a) Information search
    (b) Purchase decision
    (c) Evaluation of alternatives
    (d) Need recognition
  30. Relationship marketing refers to maintaining relations with …………..to achieve the marketing purpose.
    (a) Employees
    (b) Dealers
    (c) Customers
    (d) Suppliers
  31. The initial cash outlay of a project is Rs. 2,00,000 and it can generate cash inflow of Rs.80,000, Rs.60,000, Rs.1,00,000 and Rs.40,000 in the year 2013, 2014, 2015 and 2016 respectively. Assume 10% rate of discount. Calculate the net present value of cash inflow. Time value of money of Rs. 1 @ 10% discount factor :
    Year DF Value
    1 .909
    2 .826
    3 .751
    4 .683
    (a) 1.1240
    (b) 1.1235
    (c) 1.335
    (d) 1.634
  32. Which of the following items is not considered while determining the working capital ?
    (a) Inventory
    (b) Trade Receivables
    (c) Cash at bank
    (d) Software
  33. Which of the following is Dividend Policy Model ?
    (a) Gordon’s model
    (b) Schumpeter model
    (c) Ricardian model
    (d) Miles-Ezzell’s model
  34. The concept of cost of capital can also be explained in terms of …………… .
    (a) Direct cost
    (b) Fixed cost
    (c) Total cost
    (d) Opportunity cost
  35. Which is not the example of current liabilities ?
    (a) Advance from customers
    (b) Contingent liabilities
    (c) Bank overdraft
    (d) Provident fund dues
  36. Which one of the following is not a labour legislation ?
    (a) Factories Act
    (b) Competition Act
    (c) Payment of Wages Act
    (d) Industrial Disputes Act
  37. Theory ‘Y’ was developed by ………… .
    (a) Fiedler
    (b) Vroom
    (c) McGregor
    (d) Herzberg
  38. Induction is a function of ………….. in Human Resource Management.
    (a) Performance Appraisal
    (b) Selection
    (c) Placement
    (d) Recruitment
  39. Which of the following does not directly affect wage and salary structures ?
    (a) Ability to pay
    (b) Labour supply and demand
    (c) Union demands
    (d) Regional backwardness
  40. Employee welfare does not exactly depend on :
    (a) Conditions of Work Environment
    (b) Employees’ Health Services
    (c) Employees’ Education
    (d) Organisational Culture
  41. The lending rates of commercial banks are usually :
    (a) Not affected by Bank rate
    (b) Not related to Bank rate
    (c) Lower than Bank rate
    (d) Higher than Bank rate
  42. Banks which operate through single office and generally confined to limited area of town or city are called :
    (a) Central Banks
    (b) Urban Banks
    (c) Unit Banks
    (d) Metro Banks
  43. When money is lent or borrowed for one day or on overnight basis it is known as :
    (a) Term Money
    (b) Call Money
    (c) Notice Money
    (d) Near Money
  44. Who was the first Indian Governor of RBI ?
    (a) C. D. Deshmukh
    (b) Bengal Rama Rau
    (c) R. K. Shanmukham Chetty
    (d) K. G. Ambegaonkar
  45. Along with Central and State Governments the paid up capital of RRB is shared by :
    (a) RBI
    (b) Sponsoring Bank
    (c) NABARD
    (d) SBI
  46. GATT which was replaced by WTO was :
    (a) An organisation
    (b) An agreement
    (c) A policy
    (d) A conference
  47. Which of the following is not the item of current account of balance of payment ?
    (a) Import of services
    (b) Interest payments
    (c) Export of goods
    (d) External borrowings
  48. India’s share in global merchandise trade in 2015 was :
    (a) 2.00%
    (b) 2.50%
    (c) 3.00%
    (d) 1.60%
  49. The Asian Development Bank (ADB)attempts to promote economic co-operation and growth of thecountries in :
    (a) Asia and Far East
    (b) South East Asia
    (c) South and West Asia
    (d) South and Central Asia
  50. The direction of Indian exports has shifted in recent period towards :
    (a) Asia
    (b) North America
    (c) Europe
    (d) Africa

    Answer Key

    1 (c) 2 (b) 3 (a) 4 (d) 5 (c) 6 (a) 7 (b) 8 (b) 9 (a) 10 (b) 11 (d) 12 (d) 13 (b) 14 (d) 15 (a) 16 (b) 17 (b) 18 (c) 19 (d) 20 (b) 21 (d) 22 (b) 23 (b) 24 (c) 25 (c) 26 (a) 27 (d) 28 (c) 29 (a) 30 (d) 31 (b) 32 (c) 33 (d) 34 (a) 35 (c) 36 (a) 37 (d) 38 (c) 39 (a) 40 (c) 41 (c) 42 (c) 43 (b) 44 (c) 45 (a) 46 (b) 47 (c) 48 (a) 49 (d) 50 (c)