Telengana 2012 Commerce – Paper III

  1. ECGC was established in the year
    (a) 1948
    (b) 1964
    (c) 1963
    (d) 1950
  2. Brettonwoods system replaced _______ and established a parity for each currency in terms of both the $US and Gold.
    (a) Gold standard
    (b) Silver standard
    (c) GDRs
    (d) None of these
  3. Loco Price means
    (a) Landed Price
    (b) Duty Paid Price
    (c) Rendu Price
    (d) Ex-works Price
  4. The necessity of foreign trade arises mainly because
    a. A country may not produce at all certain goods due to lack of resources required to produce such goods.
    b. A country may not produce certain goods as economically as other countries.
    c. A country may produce certain goods more economically than other countries.
    (a) a and b
    (b) b and c
    (c) a and c
    (d) a, b and c
  5. Which group of statements is correct ?
    a. Bill of Lading is a document of file.
    b. Green Shipping bill is used for export of goods entitled to duty draw back.
    c. An airway bill is not a document of title.
    d. A consular invoice and a proforma invoice are one and the same.
    (a) b and d
    (b) a, c and d
    (c) a, b and d
    (d) a, b and c
  6. Responsibility Accounting focuses its attention on
    (a) Management by Abdication
    (b) Management by Exception
    (c) Management by Objectives
    (d) None of the above
  7. Statement (a) : Money Laundering Prevention Act, 2002 became effective since July 1, 2005.
    Statement (b) : The Act aims at Prevention of money laundering and acquiring the assets created from smuggling.
    (a) Statement A is true
    (b) Statement B is true
    (c) Both the Statements A and B are true
    (d) Both the Statements A and B are untrue
  8. Statemen (a) : Special Economic Zones Act, 2005 was passed with an aim of boosting confidence in the investors.
    Statement B) : 50% of Income Tax exemption to SEZ developers for a period of 10 years in 15 years.
    (a) Statement A is true
    (b) Statement B is true
    (c) Both the Statements A and B are true
    (d) Both the Statements A and B are untrue
  9. Assertion (a) : Formula for net barter terms of trade is Px/PM × 100.
    Reason (R) : Formula for Gross barter terms of trade is QM/QX × 100.
    (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
  10. Correct sequences steps to be taken in a Selling System include
    a. Receipt of order
    b. Processing order
    c. Shipment of merchandise
    d. Accounting for sale
    Correct Sequence is :
    (a) a, d, c, b
    (b) a, d, b, c
    (c) a, b, d, c
    (d) a, b, c, d
  11. The following steps are normally taken in an import trade
    1. Indent and letter of credit
    2. Ship’s report
    3. Delivery and customs formalities
    4. Exchange and Bill of Exchange
    Correct Sequence is :
    (a) 1, 4, 2, 3
    (b) 4, 1, 2, 3
    (c) 4, 1, 3, 2
    (d) 1, 4, 3, 2
  12. The important steps in International Market entry are
    1. Estimating future trends
    2. Estimating the Total share of competitors
    3. Finding the Market Gap
    4. Pilot study to know the consumers expectation
    Correct sequence is :
    (a) 1, 4, 3, 2
    (b) 3, 2, 4, 1
    (c) 1, 2, 3, 4
    (d) 4, 1, 2, 3
  13. Match the following :
    List – I  List – II
    i. GATT  a. Managing Balance of Payments
    ii. IMF  b. Developmental Finance
    iii. IBRD  c. Free Trade
    iv. UNO  d. Maintain Peace between Nations

    (a) i-b, ii-a, iii-d, iv-c
    (b) i-c, ii-a, iii-b, iv-d
    (c) i-b, ii-c, iii-a, iv-d
    (d) i-d, ii-a, iii-c, iv-b

  14. Match the following :
    List – I  List – I
    i. Balance of Trade  a. Services
    ii. Balance of Invisibles  b. Capital
    iii. Balance of Capital Accounts c. Goods
     d. Unrequired transfers

    (a) i-a, ii-d, iii-c
    (b) i-d, ii-c, iii-b
    (c) i-c, ii-a, iii-b
    (d) i-d, ii-b, iii-a

  15. Match the following :
    List – I List – II
    i. Adam Smith a. Availability
    ii. David Ricardo  b. Endowment
    iii. Ohlin  c. Absolute advantage
    iv. I.B.Kravis  d. Comparative advantage

    (a) i-a, ii-b, iii-c, iv-d
    (b) i-c, ii-d, iii-b, iv-a
    (c) i-b, ii-d, iii-c, iv-a
    (d) i-d, ii-c, iii-a, iv-b

  16. Match the following :
    Income Tax Act

    List – I  List – II
    a. Section 1. Interest on certain 80DDB securities etc.
    b. Section 80G 2. Contribution to certain Pension Funds
    c. Section 80L 3. Deduction for Medical Treatment
    d. Section 4. Donation to Certain 80CCC Funds etc.

    Code :
    a b c d
    (a) 2 1 4 3
    (b) 3 4 2 1
    (c) 4 3 1 2
    (d) 3 4 1 2

  17. An individual being Indian Citizen or a person of Indian origin, is resident in India if
    (a) His total stay in India for 60 days or more in the relevant previous year
    (b) His total stay in India is for 182 days or more in the relevant assessment year
    (c) His total stay in India for 182 days or more in the relevant previous year
    (d) His total stay in India for 182 days or more in the previous year preceding the relevant previous year
  18. Family Pension received by legal heirs of employee is chargeable to tax under the head
    (a) Income from salaries
    (b) Income from other sources
    (c) Capital gains
    (d) Profits and gains of business or Profession income
  19. Interest in excess of ___________ % on accumulated balance on Recognised Provident Fund is taxable w.e.f. 1st Sep.2010.
    (a) 6.5%
    (b) 7.5%
    (c) 8.5%
    (d) 9.5%
  20. Assertion (a) : Tax avoidance is an art of avoiding tax without actually breaking the law.
    Reason (b) : Avoidance of tax is not illegal.
    Which of the following is correct combination ?
    (a) Both A and R are incorrect
    (b) A is correct, but R is incorrect
    (c) A is incorrect, but R is correct
    (d) Both A and R are correct
  21. The residential status of different types of persons is determined
    (a) Once for all
    (b) Every Year
    (c) Based on their income
    (d) On the basis of sources of income
  22. Un-explained cash credits are deemed to be income of the assessee under Section
    (a) 68
    (b) 69
    (c) 69A
    (d) 69C
  23. Match the following :
    List – I List – II
    a. Assessee  1. Section 2 (31)
    b. Person 2. Section 2 (24)
    c. Income 3. Section 3
    d. Previous year 4. Section 2 (7)

    Code :
    a b c d
    (a) 2 3 4 1
    (b) 4 1 2 3
    (c) 3 4 1 2
    (d) 4 3 2 1

  24. While calculating the value of closing stock in Tally
    (a) Includes VAT
    (b) Does not include VAT
    (c) VAT should not be included in closing stock
    (d) None of the above
  25. If you use paste link function in Excel, then
    (a) No values change in the destination cell for a change in original cell
    (b) Values change in the destination cell every time you change in the reference cell
    (c) Values change only once
    (d) Values change only in the original cell and not in the destination cell for every change
  26. To enable TDS in Tally accounting package, which of the following should be activated ?
    (a) F11 and the ledger concerned
    (b) only the ledger concerned
    (c) only F11
    (d) none of the above
  27. Match the following:
    i. Voluntary return  a. Section 139(3)
    ii. Compulsory  b. Section 139(9) return of loss
    iii. Belated Return  c. Section 139(1)
    iv. Defective return d. Section 139(4)

    i ii iii iv
    (a) c a d b
    (b) d c a b
    (c) a b c d
    (d) c d a b

  28. In tally Accounting Software VAT Ledger Account is grouped under
    (a) Direct Expenses
    (b) Indirect Expenses
    (c) Sales account
    (d) None of the above
  29. When we pay TDS, which of the following account is affected in Tally ?
    (a) Creditors
    (b) Debtors
    (c) Sales
    (d) Purchases
  30. Salary for the purpose of valuation of residential accommodation provided to the assessee as per Income Tax Act, 1961
    (a) Basic pay only
    (b) Basic pay + Dearness allowance
    (c) Basic pay + All allowances + Dearness allowance
    (d) Basic pay + All allowances + Dearness allowance + Bonus + Commission
  31. The major problems of Performance Appraisal with regard to rater’s bias include
    1. Halo effect
    2. The error of central tendency
    3. The leniency strictness
    4. Personal prejudice
    5. The recency effect
    (a) 1 only
    (b) 1 and 2 only
    (c) 1, 2 and 3 only
    (d) All the above
  32. What are the factors affecting selection decisions ?
    1. Profile matching
    2. Organisational and social environment
    3. Successive hurdles
    4. Multiple correlation
    (a) 1 and 2 only
    (b) 2 and 3 only
    (c) 3 and 4 only
    (d) All of the above
  33. Identify the approaches to Job design.
    1. Engineering approach
    2. Human approach
    3. The job characteristics approach
    4. Mechanical approach
    (a) 1, 2 and 3 only
    (b) 2 and 3 only
    (c) 3 and 4 only
    (d) 1, 2, 3 and 4
  34. The Equal Pay Act came into force in the year
    (a) 1963
    (b) 1964
    (c) 1965
    (d) 1966
  35. Which of the following are flexible benefit plans ?
    1. Modular Plans
    2. Core plus option plans
    3. Flexible spending accounts
    (a) 1 only
    (b) 1 and 2 only
    (c) 1, 2 and 3
    (d) none of the above
  36. Match the following :
    Part – A  Part – B
    a. Man Power  1. Forecast manpower Planning needs based on the policies and strategies of the company trend
    b. Selection and  2. Use the criteria and Placement measures developed for selection procedures
    and placement
    c. Reinforcement 3. Promotion and Advancement
    d. Industrial 4. Job analysis Relations

    Code :
    a b c d
    (a) 1 2 3 4
    (b) 2 1 3 4
    (c) 3 1 4 2
    (d) 1 3 2 4

  37. Following are the methods of training
    1. The telling method
    2. The showing method
    3. The role playing method
    4. The discussion technique
    Code :
    (a) 1, 2 and 3
    (b) 1, 2, 3 and 4
    (c) 2 and 3
    (d) only 2
  38. Which organizational decisions affect the demand for human resources ?
    1. Strategic plan
    2. Budgets
    3. Sales and Production forecasts
    4. New Ventures
    5. Organisation
    6. Job Designs
    (a) 1,2,3,4,5 and 6
    (b) 1,2,4,5 and 6
    (c) 2,3,4 and 6
    (d) 2,3, and 4
  39. The concepts of testing includes
    1. Job analysis
    2. Reliability
    3. Validity
    (a) 1 only
    (b) 1 and 2 only
    (c) 2 and 3 only
    (d) all of the above
  40. Which of the following is special aspect of training ?
    (a) Orientation Training
    (b) Basic skills training
    (c) Team training
    (d) All of the above
  41. Statement (a) : Performance appraisal is a critical activity of personnel management
    Statement (b) : Its goal is to provide an accurate picture of a past & future employee performance.
    (a) Statement A and Statement B both are true
    (b) Statement A and Statement B both are untrue
    (c) Statement A is true but Statement B is explanation of Statement A
    (d) Statement A is true but Statement B is not explanation of Statement A.
  42. Statement (a) : Training is for present jobs.
    Statement (B): Development is for future jobs.
    Statement (C): Orientation is not enough for employee.
    Statement (D): Training helps employees to their present job
    (a) Statement A, B, and C are true
    (b) Statement A, B, C and D are true
    (c) Only Statement B is true
    (d) Only Statement A is true
  43. Match the following :
    Part –A(Year) Part – B(Growth of HRM in India)
    a. 1995 1. Emphasis has been shifted to human resource development
    b. 1985  2. Ministry of human resource development
    c. 1939 3. Industrial code under Bombay Industrial Disputes Act
    d. 1937 4. Provincial labour legislation

    Code :
    a b c d
    (a) 1 2 3 4
    (b) 3 1 2 4
    (c) 2 4 3 1
    (d) 4 2 3 1

  44. Out of the following, correct methods of morale measurement are
    1. Observation
    2. Attitude survey
    3. Company records & reports
    (a) Observation only
    (b) Observation and Attitude survey
    (c) Observation, Attitude survey and Company records & reports
    (d) None of the above
  45. Which type of absenteeism can we found in organisations ?
    1. Authorised absenteeism
    2. Unauthorised absenteeism
    3. Wilful absenteeism
    4. Absenteeism caused by circumstances beyond one’s control
    (a) 1 and 2 only
    (b) 2 and 3 only
    (c) 3 and 4 only
    (d) 1, 2, 3 & 4
  46. Which is the base for the concept of Marketing ?
    (a) Self-production
    (b) Coercion
    (c) Begging
    (d) Exchange
  47. For cigarette marketing, which type of distribution channel is most suitable ?
    (a) 0-level channel
    (b) 1-level channel
    (c) 2-level channel
    (d) 3-level channel
  48. Producing and marketing of ‘Pureit’ brand of Water Purifiers is an example for
    1. Adding new product line
    2. Adding new brand to the existing product line
    3. Adding new product form to an existing line.
    4. Adding new variants to a brand
    (a) 1 only
    (b) 1 and 2
    (c) 1, 2 and 3
    (d) All the above
  49. ‘Skimming price’ is ideal in the following situations
    1. Marketing of novel products
    2. When there are price-insensitive consumers.
    3. During the decline stage of PLC
    4. Customers are from low income group
    (a) 1 only
    (b) 1 and 2
    (c) 1, 2 and 3
    (d) All the above
  50. Personal selling goes through the following process :
    (a) Prospecting–Pre-approach–Approach–Negotiation–Overcoming objections–Sales presentation–Closing
    (b) Prospecting–Pre-approach–Approach– Sales presentation–overcoming objections– Negotiations
    (c) Pre-approach–Approach–Prospecting–Negotiation–Overcoming objections–Sales presentations–Closing
    (d) Pre-approach–Approach–Prospecting–Negotiations–Sales presentation–Overcoming objections–Closing
  51. Find the correct sequence of modern marketing
    (a) Targeting–Segmenting–Positioning
    (b) Segmenting–Positioning–Targeting
    (c) Segmenting–Targeting–Positioning
    (d) Positioning–Targeting–Segmenting
  52. Which of the following is not a tool of sales promotion ?
    (a) Sales contests
    (b) Free gifts
    (c) Point of purchase display
    (d) Public relations
  53. Assertion (A): The rate of sales growth during maturity stage of PLC will be slow.
    Reason (R) : Because the competitors enter with new product features and expand Distribution.
    (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
    (c) A is true but R is false
    (d) A is false but R is true
  54. Match the following in the context of Abraham Maslow’s Need Hierarchy theory
    List – I  List – II
    1. Dancing skills  a. Safety need
    2. Social status  b. Social need
    3. Sex  c. Physiological need
    4. Love and  d. Self-actualization affection need
    5. Pure water  e. Esteem need

    (a) 1-d, 2-e, 3-c, 4-b, 5-a
    (b) 1-a, 2-b, 3-c, 4-d, 5-e
    (c) 1-d, 2-b, 3-a, 4-e, 5-c
    (d) 1-b, 2-c, 3-d, 4-e, 5-a

  55. Match the following :
    List – I  List – II
    1. Psychological a. Rational motive to buy Patronage specific products motive on a regular base
    2. Logical analysis  b. Emotional of the intended product purchase from the motive same shop
    3. Buying from the c. Emotional same shop without patronage any logical reasons motive
    4. Careful reasoning d. Rational to buy an intended product product motive

    (a) 1-d, 2-c, 3-b, 4-a
    (b) 1-a, 2-b, 3-c, 4-d
    (c) 1-c, 2-d, 3-a, 4-b
    (d) 1-b, 2-a, 3-c, 4-d

  56. Match the following goods with their titles
    List – I List – II
    1. Convenience goods  a. Toothpaste
    2. Specialty goods  b. Furniture
    3. Shopping goods c. Cameras
    4. Services d. Haircut

    (a) 1-d, 2-c, 3-b, 4-a
    (b) 1-a, 2-b, 3-c, 4-d
    (c) 1-a, 2-c, 3-b, 4-d
    (d) 1-b, 2-a, 3-d, 4-c

  57. Selling LIC Policies, Ayurvedic medicines, Encyclopedias and Politicians are the examples of
    1. Marketing concept
    2. Product concept
    3. Production concept
    4. Selling concept
    (a) 1 only
    (b) 2 and 3
    (c) 1, 2, 3 and 4
    (d) 4 only
  58. The focus and end of the marketing concept is
    (a) Marketer’s profit and satisfaction
    (b) Customer’s needs and profits through customer satisfaction
    (c) Seller’s satisfaction and customer’s satisfaction
    (d) Short-term profits of marketer and long-term satisfaction of the customer
  59. Which of the following do not form the bases for behavioural segmentation of the market ?
    1. Usage rate and status
    2. Age and gender
    3. Life style and attitude
    4. Loyalty status
    (a) 1 and 2
    (b) 1 and 4
    (c) 2 and 3
    (d) 3 and 4
  60. Which of the following is/are form/s of direct marketing ?
    1. Catalogue marketing
    2. Direct mail marketing
    3. Database marketing
    4. Tele marketing
    (a) 1 only
    (b) 1,2 and 3
    (c) 1 and 2
    (d) All the above
  61. Responsibility accounting seeks to establish relationship between Planning and Controlling by
    (a) Establishing a system of collective responsibility
    (b) Fixing organizational responsibilities for profit planning and control
    (c) Dividing standards of work performance
    (d) Controlling cost and performance
  62. In the Governing body of Stock Exchange, certain percentage of the elected members retire at the Annual meeting. That is
    (a) 33%
    (b) 40%
    (c) 50%
    (d) 25%
  63. Which of the following are the causes of business risks ?
    1. Risks due to changing consumer tastes
    2. Risks due to technological change
    3. Risks due to organisation personnel
    4. Risks due to changing Government Policy
    5. Risks due to theft, casualty and natural causes.
    (a) 2, 3 and 4
    (b) 1, 2, 3, 4 and 5
    (c) 1, 3, 4 and 5
    (d) 2, 3, 4 and 5
  64. Match the following:
    List – I  List – II
    a. Open ended  1. India growth mutual fund fund raised scheme in USA
    b. Close ended 2. SBI Mutual mutual fund scheme Fund
    c. Domestic mutual 3. Master Gain fund schemes Scheme of UTI
    d. Off shore mutual 4. US-1964 of fund schemes UTI

    Code :
    a b c d
    (a) 4 3 1 2
    (b) 3 4 1 2
    (c) 4 3 2 1
    (d) 3 4 2 1

  65. Match the following :
    Group-A  Group-B
    a. The Indian Contract Act 1. 1999
    b. FEMA Act  2. 1872
    c. The Securities Contracts Act 3. 1934
    d. RBI Act  4. 1956

    Code :
    a b c d
    (a) 1 2 3 4
    (b) 4 3 2 1
    (c) 2 1 4 3
    (d) 3 4 1 2

  66. Match the following :
    Group – A Group – B
    a. HDFC  1. Credit Rating
    b. ICRA  2. Housing Finance
    c. NCDEX  3. Insurance
    d. LIC  4. Commodity trading

    Code :
    (a) a-2, b-1, c-4, d-3
    (b) a-1, b-2, c-3, d-4
    (c) a-4, b-3, c-2, d-1
    (d) a-3, b-4, c-1, d-2

  67. Assertion (a) : Mutual fund managers are the only people allowed to make a market in mutual fund units.
    Reason (R) : They are prepared to buy units from and sell units to the public at any time.
    (a) A is correct but R is incorrect
    (b) A and R are correct
    (c) A is incorrect but R is correct
    (d) A and R are incorrect
  68. Identify the stages in Venture Capital Financing
    (a) First round financing and second round financing
    (b) First round financing, second round financing and final round financing
    (c) Seed money stage, first round financing, second round financing
    (d) Seed money stage, start up stage, first round financing, second round financing, third round financing and fourth round financing
  69. Which of the following is a part of responsibility accounting ?
    (a) Cost centres
    (b) Money centres
    (c) Purchase centres
    (d) Selling centres
  70. 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
    Code :
    (a) 1 and 3
    (b) 2 and 4
    (c) 1, 2 and 4
    (d) All the above
  71. The following are the Money Market Instruments
    1. Treasury Bills
    2. Commercial Paper
    3. Repo Instruments
    4. Shares & Debentures
    Choose the correct Code :
    (a) 1 and 4
    (b) 1 and 3
    (c) 1, 2 and 4
    (d) 1, 2 and 3
    Para Phrasing
    Read the following passage and answer Q. 72 to Q. 75 that follow :
    Two or more firms join together to create a new business entity that is legally separate and
    distinct from its parents. Joint Ventures are established as Corporations and owned by the
    funding partners in the predetermined proportions. Joint Ventures involve shared ownership. Joint Ventures are common in international business. Various environmental factors like social, technological, economic and political encourage the formation of Joint Ventures. Joint Ventures provide required strengths in terms of required capital. Latest technology, required human talent etc. and enable the companies to share the risks in the foreign markets.
  72. Joint Venture is a
    (a) Single Ownership
    (b) Multi Ownership
    (c) Shared Ownership
    (d) None of these
  73. Joint Venture provides
    (a) Required human talent
    (b) Technology
    (c) Capital
    (d) All of the above
  74. Certain factors affect the formation of Joint Venture
    (a) Political factors
    (b) Social factors
    (c) Economic factors
    (d) All the above
  75. Do you think Joint Ventures are common in international business
    (a) Yes
    (b) No
    (c) Not sure
    (d) Information inadequate

    Answer Key

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