- Privatisation in India has initially been adopted from
(a) U.S.A.
(b) U.K.
(c) Germany
(d) France - Which combination of the following factors led to Globalisation in the recent past ?
1) Growth of Multinational Corporations
2) Internationalisation of Finance
3) Increased International Trade
(a) 1 and 2
(b) 1 and 3
(c) 2 and 3
(d) 1, 2 and 3 - The process of environmental analysis consists of the following sequential steps
(a) Monitoring, Scanning, Forecasting and Assessment
(b) Scanning, Monitoring, Forecasting and Assessment
(c) Monitoring, Forecasting, Scanning and Assessment
(d) Assessment, Monitoring, Forecasting and Scanning - Match the right clusters with industries:
Group – I(Industries) Group – II (Clusters ) a) Jewellery and Gems 1) Vapi (Gujarat) b) Auto parts 2) Surat (Gujarat) c) Chemicals 3) Tiruppur (Tamil Nadu) d) Textiles 4) Vijayawada (A.P) Codes :
(a) a – 1, b – 3, c – 4, d – 2
(b) a – 3, b – 4, c – 1, d – 2
(c) a – 2, b – 4, c – 1, d – 3
(d) a – 4, b – 2, c – 3, d – 1 - Profit after tax is equal to
(a) PBIT– Interest and Dividend
(b) PBIT – Interest – Tax – Depreciation
(c) PBIT – Interest – Tax
(d) PBIT+ Interest - Consider the following statements
1) Operational loss is a source of funds
2) Decrease in working capital is source of funds
3) Additions to fixed assets are application of funds
4) Introduction of fresh capital is an application of funds
Which of the above statements are applicable while preparing the funds flow statement ?
(a) 1 and 2
(b) 1 and 3
(c) 2 and 3
(d) 1, 3 and 4 - All the following curves are ‘U’ shaped except
(a) AC Curve
(b) AFC Curve
(c) AVC Curve
(d) MC Curve - Match items of List – I, with those of List – II
List – I List – II i) Utility theory x) Stating the preference ii) Indifference y) Constant Curve marginal utility iii) Revealed z) Convexity Preference (a) i – x, ii – y, iii – z
(b) i – z, ii – y, iii – x
(c) i – y, ii – z, iii – x
(d) i – y, ii – x, iii – z - Statements :
Assertion (X) : Monopolistic competition is a market structure similar to perfect competition.
Reason (Y) : There is a large number of sellers and no scope for free entry & free exit from the industry.
(a) Both X and Y are true and Y is the correct explanation
(b) Both X and Y are true, but Y is not the correct explanation
(c) X is true, but Y is false
(d) X is false, but Y is true - Sampling distribution will be approximately normal, if sample size is
(a) Large
(b) Sufficiently large
(c) Small
(d) None of these - AIDA model of advertising objectives includes
(a) Action, Interest, Demand, Attention
(b) Attention, Innovation, Desire, Action
(c) Awareness, Interest, Desire, Action
(d) Attention, Interest, Desire, Action - Match the items from List –I, with the items in List-II
List – I List – II a) Chi-Square test i) Secondary data b) Annual reports ii) Information of Companies system c) Multi-Variate iii) Hypothesis testing d) Data Processing iv) Factor Analysis a b c d
(a) iv ii i iii
(b) iii i iv ii
(c) iii iv i ii
(d) iv i iii ii - Statement :
X – When the data are interval ratio, we can use the mean as a measure of central tendency.
Y – Sum of absolute deviations from median is minimum.
(a) Both X and Y are correct
(b) Both X and Y are incorrect
(c) X is correct, but Y is incorrect
(d) X is incorrect, but Y is correct - Following is the example for convenience goods
(a) Furniture
(b) Soaps
(c) Cars
(d) LIC Policy - Arrange the following levels of a product in an ascending order (sequence) in which they add customer value
(a) Potential product-Core benefit-Basic product-Augmented product –Expected product
(b) Augmented product-Core benefit-Expected product-Potential product-Basic product
(c) Core benefit-Basic product-Augmented product-Expectedproduct-Potential product
(d) Core benefit-Basic product-Expected product-Augmented product-Potential product - Match the following adopter categories with their characteristics :
Adopter categories Adopter characteristics a) Innovator i) Skeptical b) Early adopters ii) Deliberate c) Early Majority iii) Opinion d) Late majority Leaders iv) Tradition bound e) Laggards v) Venturesome (a) a – v, b – iv, c – iii, d – ii, e – i
(b) a – iv, b – iii, c – v, d – i, e – ii
(c) a – iii, b – iv, c – v, d – i, e – ii
(d) a – v, b – iii, c – ii, d – i, e – iv - To enter opening balance of cash in hand in Tally 9
(a) Click Gateway of Tally→Accounts Info→Ledgers-Single→Alter.
(b) Click Gateway of Tally→Accounts Info→Accounting Vouchers→Alter
(c) Click Gateway of Tally→Accounting Vouchers→Alter
(d) Click Gateway of Tally→Accounting Info→Ledgers→Alter - Match the following commands with their purposes in MS Excel
List – I List – II 1) To see only the a) Filter record that you need command 2) To create cross b) Pivot Table tabulated data 3) The read-only c) Templates documents to create or restyle your documents 4) The assistance that d) Wizards use templates to create documents and to make design decisions on their own 1 2 3 4
(a) a b c d
(b) b c d a
(c) c d b a
(d) d a c b - Strategic planning is done by the
(a) Top management
(b) Middle level management
(c) Supervisory level management
(d) All the above - Match the following :
List – I List – II a) Three needs theory i) Mclelland b) ERG theory ii) Clayton Alderfer c) XY theory iii) Mc Gregor d) Hygiene theory iv) F.Herzberg a b c d
(a) iii i iv ii
(b) i ii iii iv
(c) ii i iv iii
(d) iv iii ii i - In which year was the EXIM Bank established ?
(a) 1982
(b) 1983
(c) 1984
(d) 1985 - Which of the following Policy measures would lead to expansion of Business ?
(1) Export Duty
(2) Export subsidy
(3) Liberal Import
(4) Revaluation of Currency
(a) 1, 2 and 4
(b) 1 and 3
(c) 3 and 4
(d) 2 and 4 - Sequence of steps to be taken in a Selling System include
(1) Receipt of Order
(2) Processing Order
(3) Shipment of merchandise
(4) Accounting for sale
The correct chronological order for these
(a) 1, 4, 3, 2
(b) 1, 4, 2, 3
(c) 1, 2, 4, 3
(d) 1, 2, 3, 4 - Match the following :
List – I List – II i) Mercantilism a) France ii) Cameralism b) Spain iii) Physiocrats c) England d) Germany (a) i – a , ii – b, iii – c
(b) i – b, ii – c, iii – d
(c) i – c, ii – d, iii – a
(d) i – a, ii – c, iii – b - Match the following :
Group – I : Group – II : a) Debt Service Ratio 1) Net income before charging interest and income tax Fixed Interest charges. b) Preference Dividend Coverage Ratio 2) Net income after interest and Income Tax Preference Dividend c) Cash to Debt Service Ratio 3) Gross Profit x 100 Net Sales d) Gross Profit Ratio 4) Annual cash flow before interest and taxes Sinking Fund a b c d
(a) 1 2 4 3
(b) 1 4 3 2
(c) 2 3 4 1
(d) 2 4 1 3 - If you do not know the discount rate for a project, the right investment criterion to be
used will be
(a) IRR (b) NPV
(c) ARR (d) All the above - In determining the adjusted present value, tax shields on financing effects are discounted at
(a) Opportunity cost of equity
(b) Marginal cost of debt
(c) Weighted average cost of debt
(d) Average of A and B above - Which of the following statements is correct ?
(a) BEP is the point at which total revenue is equal to total cost
(b) Contribution margin= Sales x P/V ratio
(c) At BEP, the firm yields neither profit nor loss
(d) All of the above - Which of the following is NOT an aptitude Test ?
(a) Intelligence Test
(b) Psychomotor test
(c) Skill Test
(d) Job Knowledge Test - Match the following :
List – I List – II 1) Content of a job’s a) Job duties and enlargement responsibilities 2) Movement of an b) Job employee from one enrichment job to the another 3) Adding duties and c) Job rotation responsibilities that will provide for skill variety task identity and autonomy 4) Adding more and d) Job design different tasks to a specialized job to provide greater variety 1 2 3 4
(a) a b c d
(b) b c d a
(c) d c b a
(d) c b d a - Which is the correct sequence of needs, in hierarchy of Abraham Maslow’s needs theory ? (Arrange among them in hierarchical order)
(a) S e l f → a c t u a l i s a t i o n →Social→Security→Physiological →Esteem
(b) Esteem→Self→actualisation→Social→Security→Physiological
(c) Physiological→Security→S o c i a l → E s t e e m → S e l f →actualisation
(d) Security→ Social→ Physiological→Esteem→Self→actualization - Trace the chronological sequence in the establishment of the following institutions
(a) SEBI→ NSE-STCI→NSDL
(b) NSDL→ STCI-NSE→ SEBI
(c) NSE→ STCI-SEBI→ NSDL
(d) STCI→ SEBI-NSDL→ NSE - Which of the following are the objectives of NABARD?
1) To sanction long term loan to rural areas
2) To achieve overall rural development
3) To provide financial assistance for increasing the agricultural production
4) To control the commercial banks
(a) 1, 2, 3 and 4
(b) 2, 3 and 4
(c) 1, 2 and 3
(d) 1, 2 and 4 - Statement A : The Chairman of World Bank may be Superior Officer of International Finance Corporation (IFC).
Statement B : The Chairman of IFC is appointed by Board of Governance with the consent of World Bank.
(a) Statement A is true
(b) Statement B is true
(c) Statements A and B are true
(d) Statements A and B are untrue - Assertion (a) : Generally the demand of a good increases with a decrease in price of the
good and vice versa. However, this may not be true.
Reason (R) : Giffen’s goods is an exception;
(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
(c) A is true, but R is false
(d) A is false, but R is true - Identify the sequence of events that lead to financial results
(a) Sales Revenue, EBIT, Contribution, PBT
(b) EBIT, PBT, Sales Revenue, Contribution
(c) Sales Revenue, Contribution, EBIT, PBT
(d) EBIT, Contribution, Sales Revenue, PBT - Assertion (a) : According to Modigliani and Miller, value of the firm is unaffected by
dividend policy.
Reason (R) : A firm’s value is determined solely by its investment decisions.
(a) Both A and R are correct
(b) Only A is correct, but R is incorrect
(c) Only R is correct, but A is incorrect
(d) Both A and R are incorrect - Which of the following are the approaches to Inflation Accounting ?
1) Present Value Approach
2) Current Cost Accounting Approach
3) Walter’s Approach
4) Current Purchasing Power Approach
(a) 1 and 3
(b) 2 and 4
(c) 1, 2 and 4
(d) all the above - In the case of retirement of a partner, goodwill at its full value is credited to the account/s of
(a) Only retiring partner
(b) All partners
(c) Only remaining partners
(d) None of the above - If a share of Rs.10 is issued at a premium of Rs.2, on which the full amount has been called and Rs.8 (including premium) paid is forfeited, the capital account should be debited with
(a) Rs.12
(b) Rs.10
(c) Rs.8
(d) Rs.6 - Match the following :
Set – I Set – II 1) Amalgamation a) When two or more companies go into liquidation and a new Company is formed. 2) Absorption b) When an existing company takes over the business of one or more existing companies. 3) External c) Reduction of capital Reconstruction of a company which is to be reconstructed. 4) Internal d) When a new Reconstruction company is formed to take over the business of the existing company. 1 2 3 4
(a) a b c d
(b) d a c b
(c) b c a d
(d) a b d c - Assertion (a) : Share premium cannot be utilized for any purpose other than mentioned in Sec.78 of the Companies Act.
Reason (R) : Share Premium is a capital receipt.
Select the correct answer by using the code given below
(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 a correct explanation of A
(c) A is true, but R is false
(d) A is false, but R is true - A and B are partners sharing profits and losses in the ratio of 2:5. They admit C on the condition that he will bring goodwill in cash which is distributed between A and B. C’s share in future profit or loss is to be one fourth. The new profit sharing ratio of A, B and C will be
(a) 6:15:7
(b) 15:6:7
(c) 7:6:15
(d) 2:5:4 - Match the following :
List – I List – II a) Capital Market i) IRDA b) Monetary Policy ii) SEBI c) Telecom iii) RBI d) Insurance iv) TRAI a b c d
(a) ii iii i iv
(b) ii iii iv i
(c) ii iv iii i
(d) ii i iv iii - The following are the sequential stages of operating cycle :
(a) Cash–Raw material–Finished goods–Sales–Receivables
(b) Cash–Sales–Raw materials–Finishedgoods
(c) Finished goods–Cash-Sales–Rawmaterials
(d) Finished goods–Sales–Raw materials–Cash. - Find out the present value of Rs.10,000, to be received after 4 years, if the interest rate is 6%
(a) Rs. 6,821
(b) Rs. 7,921
(c) Rs. 8,291
(d) Rs. 8,921
Comprehension
READ the following passage and answer the question from 47 to 50
FULL CONVERTIBILITY
The Prime Minister feels that the rupee’s full Convertibility is an idea whose time has come, and since these things are unstoppable, we might as well prepare a road map for it. This is salutary. Of course, a road map to Convertibility is quite different from Convertibility itself. A Committee headed by Dr.C.Rangarajan had prepared one such road map in 1997. The road map lost its way, thanks to the Asian financial crisis that soon broke out. As India successfully warded off the contagion, Policy Makers thanked the absence of full Convertibility. Things have changed significantly since then. Its not just that our forex reserves have ballooned to a size that should reassure the most worry-prone of central bankers on the count of perceived adequacy. India is now recognized by the World as an economy that will sustain high growth. The combined fiscal deficit of the Centre and the States is on the way down, along a path marked by milestones of deficit reduction mandated by law. This grants the Central Bank the flexibility it needs in
monetary policy in a regime of uncontrolled cross-border capital movements. Import duties have come down significantly, forcing companies to acquire genuine international competitiveness and domestic tax reform lends a hand to the process. The rupee’s movement against major currencies is no longer steadfastly downwards. A couple of scams and their backlash have greatly enhanced the quality of capital market regulation. All these favour convertibility. But that is not enough. Since one economic agent’s external exposure impacts another’s, the system must allow the consequences of such exposure to work its way through fast. Financial reporting must improve, the market for corporate control must work and redeployment of the assets of failed firms via liquidation must happen fast. Reconstructing bad assets cannot remain shuffling paper from one agency to another. The RBI needn’t twiddle its thumbs while these needed changes get
instituted. Preparing for the prospect of any Tom, Dick or Harry, buying stocks on NSE means shedding its allergy to FII sub accounts right now. - Why has the road map to full Convertibility lost its way ?
(a) Low foreign exchange reserves
(b) Ineffective regulatory frame work
(c) High fiscal deficit
(d) Asian Financial Crisis - Which of the following factors contribute to full Convertibility?
(a) Economy is prepared to sustain high growth
(b) Tax reforms and low fiscal deficit
(c) Good Forex reserves and an efficient Central Bank
(d) All of the above - What do we need for full Convertibility?
(a) Political will
(b) A Committee of Experts
(c) More Institutional Strength
(d) Financial Reforms - Scams have resulted in
(a) more capital regulations
(b) more corporate control
(c) improved financial reporting
(d) more quality controlAnswer Key
1 (b) 2 (d) 3 (b) 4 (c) 5 (c) 6 (c) 7 (b) 8 (c) 9 (a) 10 (a) 11 (d) 12 (b) 13 (a) 14 (b) 15 (d) 16 (d) 17 (a) 18 (a) 19 (a) 20 (b) 21 (a) 22 (d) 23 (d) 24 (c) 25 (a) 26 (a) 27 (b) 28 (d) 29 (d) 30 (c) 31 (c) 32 (a) 33 (c) 34 (c) 35 (a) 36 (c) 37 (a) 38 (b) 39 (b) 40 (b) 41 (d) 42 (b) 43 (a) 44 (b) 45 (a) 46 (b) 47 (d) 48 (d) 49 (c) 50 (d)