- The key drivers of globalisation are
(a) Govt. action, privatisation, cost and competition
(b) Cost advantages, economic cycles and competition
(c) Market convergence, exchange rates and demographic factors
(d) Govt. policies, cost, market and competition - Ministry of industry constituted a public sector disinvestment commission during the year
(a) 1991
(b) 1993
(c) 1996
(d) 2002 - The Age of Discontinuity is authored by
(a) Adam Smith
(b) Peter F. Drucker
(c) J. M. Keynes
(d) John Dryden - Removal of poverty was strongly emphasised during
(a) Fourth five year plan
(b) Fifth five year plan
(c) Sixth five year plan
(d) First five year plan - Assertion (a) : Scanning is the process of analysing the environment for identifying the factors which have an impact on the business.
Reasoning (R) : Analysis of external environment enables a business to identify its strengths and weaknesses.
Codes :
(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 not true
(d) Both (a) and (R) are false - Match the following :
List – I List – II a. MRTPAct i. 1971 b. FERA ii. 1999 c. FEMA iii. 2002 d. Competition Act iv. 1969 Codes :
a b c d
(a) iv i ii iii
(b) iv ii i iii
(c) iv iii ii i
(d) iv ii iii i - Tripple bottom-line accounting is also called
(a) Historical Accounting
(b) Full Cost Accounting
(c) Incremental Costing
(d) Management Accounting - Cost incurred on recruiting, training and development of employees is called
(a) Replacement cost
(b) Historical cost
(c) Opportunity cost
(d) None of the above - A share of Rs. 20 each was forfeited for non-payment of final call of Rs. 10 per share and the same is re-issued for Rs. 50. The amount to be credited to the Capital Reserve A/c will be
(a) Rs. zero
(b) Rs. 40
(c) Rs. 90
(d) Rs. 50 - For buying controlling interest in the company, the most appropriate method for valuation of shares is
(a) Dividend capitalisation method
(b) EPS capitalisation method
(c) Market value approach
(d) None of the above - Which of the following formula is used for computing the profit ?
(a) P/V ratio (×) total sales
(b) P/V ratio (×) B.E.P. sales
(c) P/V ratio (×) Margin of safety
(d) None of the above - Production budget is governed by
(a) Flexible budget
(b) Sales budget
(c) Master budget
(d) Material budget - Which of the following is a correct sequence of balancing of an account ?
(a) Journalising, posting, casting and balancing
(b) Debiting, crediting, posting and casting
(c) Crediting, debiting, casting and posting
(d) None of the above - Match List – A with List – B
List – A List – B a. Trading on i. Responsibility equity accounting b. Degree of ii. Funds flow operating statement leverage c. Change in iii. Financial working capital leverage d. Investment iv. Operating centre risk Codes :
a b c d
(a) i ii iv iii
(b) ii i iii iv
(c) iii iv ii i
(d) iv iii ii i - Which of the following affect the EPS of a company ?
1. EBIT
2. Interest obligation
3. Tax Burden
4. No. of shares outstanding
(a) 2, 3 and 4
(b) 1, 2 and 3
(c) 1, 3 and 4
(d) 1, 2, 3 and 4 - Assertion (a) : Expired portion of revenue expenditure is an expense; if it expires after providing benefit.
Reasoning (R) : Unexpired portion of revenue expenditure is a current asset.
Codes :
(a) Both (a) and (R) are correct
(b) Both (a) and (R) are incorrect
(c) (a) is correct but (R) is not correct
(d) (a) is incorrect but (R) is correct - “Invisible hand principle” is related to
(a) Command economy
(b) Market economy
(c) Mixed economy
(d) Traditional economy - These costs are zero when output is zero
(a) Total variable costs
(b) Total fixed costs
(c) Average fixed costs
(d) Total average costs - Which of the following is a differentiated product ?
(a) A hamburger
(b) A shirt
(c) An automobile
(d) All the above - Which one of the following is not an assumption of break-even analysis ?
(a) Elements of cost cannot be divided into different groups
(b) Fixed cost remains constant from zero production to full capacity
(c) Behaviour of different costs is linear
(d) Selling price remains constant - The need for study of economics arises because of
a. Scarce resources having alternative uses.
b. Human wants are unlimited but means are limited.
c. Increase in the per-capita income of people.
d. The growth of economy at about 7%.
Codes :
(a) a and c
(b) c and d
(c) a and b
(d) b only - Match the following :
List – I List – II a. Joint demand i. Beaf and Hide b. Joint supply ii. Pepsi and coco-cola c. Derived iii. Tea and sugar demand d. Competitive iv. Computer demand operator Codes :
a b c d
(a) iii i iv ii
(b) iv ii i iii
(c) ii i iii iv
(d) iii iv i ii - Assertion (a) : When the demand is elastic and prices decrease, it will result in increase in quantity demanded and increase in total revenue.
Reasoning (R) : With the reduction in price, comfort and luxury goods attract more number of customers which results in increase in quantity demanded and total revenue.
Codes :
(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) Both (a) and (R) are false - Depreciation is entered in ________ voucher in Tally.
(a) F4
(b) F6
(c) F7
(d) F9 - Following is used to see all the sellings and buying transactions
(a) Display
(b) Masters
(c) Day book
(d) Trial balance - The following ledgers are created in Tally by default
a. Cash Account
b. Capital Account
c. Profit and Loss Account
d. Depreciation Account
(a) a and b
(b) a and c
(c) b and c
(d) a, b, c and d - Assertion (a) : ‘X’ is a reliable estimate of ‘μ’.
Reasoning (R) : Expected (X) is ‘μ’.
Codes :
(a) Both (a) and (R) are true
(b) Both (a) and (R) are false
(c) (a) is true but (R) is false
(d) (a) is false but (R) is true - Which of the following pairs of null and alternative hypothesis are true in the correct form ?(a) i, ii and iii
(b) i and ii only
(c) i and iv only
(d) ii, iii and iv - Match the following :
List – I List – II a. Drop cap i. Mailing list b. Data source ii. Begin paragraph with capital letter c. Spelling tool iii. Standard toolbar d. Landscape iv. Superscript v. Page orientation Codes :
a b c d
(a) iv i ii iii
(b) i ii iii v
(c) v iv ii i
(d) ii i iii v
30-31 : A bolt manufacturing factory, A, B and C plants manufacture 60%, 25% and 15% bolts respectively. Of the total of their output 1%, 2% and 1% are defective bolts from each plant respectively. A bolt is drawn at random from the total production and found to be defective. - What is the probability that the defective bolt is manufactured by plant A ?
(a) 1215
(b) 1025
(c) 925
(d) 325 - What is the probability that the defective bolt is manufactured by plant B ?
(a) 1225
(b) 1025
(c) 925
(d) 325 - The responsibility for direction primarily lies with
(a) Top management
(b) Middle level management
(c) Board of directors
(d) First line managers - First management thinker who introduced piece rate system to improve efficiency is
(a) Halsey
(b) Rowan
(c) Taylor
(d) Robert Owen - Which one of the following statements is false ?
(a) Leadership is a part of management but not all of it
(b) Leadership is the process of getting things done through and with the people
(c) People become leaders by birth
(d) Leadership is an interpersonal process exercised by the leader on the followers in a given situation - Which of the following functions of management is referred to as the essence of management ?
(a) Planning
(b) Organising
(c) Co-ordinating
(d) Controlling - Which of the following is/are not a barrier of communication ?
a. Unclarified assumptions
b. Open mind
c. Loss by transmission
d. Clarify of thought
Codes :
(a) a and b
(b) b and c
(c) b and d
(d) a and c - Match the following
List – I List – II a. F. W. Taylor i. Behavioural approach b. Henry Fayol ii. Human relations c. Elton Mayo iii. Administrative theory d. Abraham iv. Scientific Maslow management Codes :
a b c d
(a) ii i iv iii
(b) iv iii ii i
(c) iii iv i ii
(d) iv i ii iii - Arrange the following steps of planning in a proper sequence :
i. Developing premises
ii. Evaluating alternative courses
iii. Being aware of opportunities
iv. Selecting a course
v. Establishing objectives
(a) i iii iv v ii
(b) i iii ii v iv
(c) iii v i ii iv
(d) iii i v iv ii - Assertion (a) : Robert Owen is known as the father of modern personnel management.
Reasoning (R) : He conducted time and motion studies at Hawthorne works of western electric company.
Codes :
(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) Both (a) and (R) are false
(d) (a) is true but (R) is false - Early adopters and innovators are thought to operate as
(a) Opinion leaders
(b) Social leaders
(c) Market leaders
(d) Segmentation leaders - AIDA stands for
(a) Attention – Imitation – Dependence – Admiration
(b) Attention – Interest – Desire – Action
(c) Action – Intention – Desire – Attrition
(d) Attraction – Imitation – Deployment – Action - According to needs hierarchy theory, the following needs are arranged in the descending order as follows :
i. Safety needs
ii. Self actualization needs
iii. Physiological needs
iv. Esteem needs
v. Social needs.
(a) v ii iv i iii
(b) ii iv v i iii
(c) i ii iii iv v
(d) iii i v iv ii - Assertion (a) : Services marketing is different from goods marketing.
Reasoning (R) : Services contribute 60% of Indian GDP.
Codes :
(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 explain of (a)
(c) (a) is true but (R) is false
(d) (a) is false but (R) is true - Assertion (a) : CRM is to make focus on retaining existing customers.
Reasoning (R) : Attracting new customer is costlier than retaining the existing customer.
Codes :
(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
) (a) is false but (R) is true - Match the type of customers with their characteristics :
List – I List – II a. Laggards i. Skeptical b. Early birds ii. Opinion leaders c. Late iii. Deliberate majority d. Innovators iv. Traditional v. Venturesome Codes :
a b c d
(a) ii i iv iii
(b) iii iv ii i
(c) i ii iii iv
(d) iv ii i v
46-47 : ABC Ltd., wants to promote its products primarily to wholesalers, the wholesalers to retailers and retailers to consumers.
One the other hand, it wants to initiate aggressive sales promotion and frequent advertising to build up consumer demand. It thinks that the strategy would motivate consumers to ask retailers for the products, the retailers will ask the wholesalers who inturn ask ABC Ltd., for the product. - What is the first strategy called ?
(a) Pull strategy
(b) Push strategy
(c) Pull and push strategy
(d) Pick and push strategy - Identify the strategy followed by ABC Ltd :
(a) Push strategy
(b) Pick and pick strategy
(c) Pull and pull strategy
(d) Pull strategy - Given the nominal rate of discount at 12% and the rate of inflation at 5%, the real rate of discount will be
(a) 17%
(b) 7%
(c) 6.7%
(d) 7.6% - Gordon dividend model is based on
(a) Constant growth rate in dividend
(b) Increasing growth rate in dividend
(c) Decreasing growth rate in dividend
(d) None of the above - The reciprocal of P/E ratio is called
(a) Overall cost of capital (Ko)
(b) Cost of debt (Kd)
(c) Cost of Equity (Ke)
(d) Cost of retained earnings (Kr) - In which order the following variables are to be considered while arriving at EVA ?
Variables :
i. EBDIT
ii. Interest on debt (I)
iii. Depreciation (d)
iv. Taxes (T)
v. Cost of equity (Ke)
(a) EBDIT – I – T – D – Ke
(b) EBDIT – T – I – D – Ke
(c) EBDIT – D – T – I – Ke
(d) EBDIT – D – I – T – Ke - Terminal value of a project is affected by
i. Project life
ii. Growth rate
iii. Initial outlay
iv. Incremental cash inflows or outflows
(a) i, ii and iv (b) i, iii and iv
(c) ii, iii and iv (d) i, ii, and iii - Which of the following statements is/are correct ?
i. As per NI approach, optimum capital structure means 100% debt capital.
ii. Every (or any) Debt-equity mix is an optimum mix.
iii. Tax-free zone company enjoys the benefit of Interest tax shield.
iv. Interest tax shield is the side effect of mixing debt with equity.
(a) i and ii only
(b) iii and iv only
(c) i, ii and iii
(d) i, ii and iv - Assertion (a) : The more the duration of the gross operating cycle, the more the amount of gross working capital requirement and vice-versa.
Reasoning (R) : The duration of the gross operating cycle is independent of the credit period granted by the supplier and therefore, the gross working capital remains unaffected.
Codes :
(a) (a) is correct and (R) is not correct
(b) (a) is incorrect and (R) is correct
(c) Both (a) and (R) are correct
(d) Both (a) and (R) are incorrect - Match the List – A with the List – B :
List – A List – B a. Zero-coupon i. Cost of equity Bond b. CAPM model ii. Cost of retained earnings c. Opportunity cost iii. Nominal cost of capital of capital d. Real cost of iv. Initial outflow capital and terminal inflow Codes :
a b c d
(a) iv i ii iii
(b) i ii iii iv
(c) iv i iii ii
(d) ii i iv iii - Which intervention method listed below is the most definitive of all third party interventions ?
(a) Fact finding
(b) Mediation
(c) Binding arbitration
(d) Interest arbitration - Acts of misconduct that cause very little harm but if neglected can accumulate and result in serious problems for the organisation.
(a) Minor infractions
(b) Major infractions
(c) Intolerable offences
(d) Serious misconduct - Sending your employees to work on projects of another company while they continue to be on your rolls is called
(a) Work sharing
(b) Retrenchment
(c) Benching
(d) Loaning - Assertion (a) : When people working in the company are valuable, rare and difficult to imitate, they can be a source of competitive advantage.
Reasoning (R) : People are a source of competitive advantage when their skills, knowledge and abilities are easily available to competitors.
Codes :
(a) Both (a) and (R) are true and (R) is the correct explanation of (a)
(b) Both (a) and (R) are true and (R) is not the correct explanation of (a)
(c) (a) is true but (R) is false
(d) Both (a) and (R) are false - An interview during the course of which several interviewers take turns in interviewing the candidate is called
(a) Structured interview
(b) Unstructured interview
(c) Panel interview
(d) Group interview - Which of the following are off-the-job training methods ?
a. Lecturing
b. Apprenticeship
c. In basket training
d. Seminars
Codes :
(a) a and b
(b) b and d
(c) c and d
(d) a and d - Assertion (a) : The use of information technology and internet by employees has raised concerns regarding the privacy of employee work activities.
Reasoning (R) : Information technology offers current and accurate data for the purposes of control and decision making.
Codes :
(a) Both (a) and (R) are correct but (R) is not the correct explanation of (a)
(b) Both (a) and (R) are false
(c) (a) is true but (R) is false
(d) (R) is true but (a) is false - Assertion (a) : Role playing is a technique that requires the trainee to assume different identities to learn how others feel under different circumstances.
Reasoning (R) : This is an opportunity for the participants to provide their ideas on a stated problem during a freewheeling group discussion.
Codes :
(a) (a) is true but (R) is false
(b) Both (a) and (R) are false
(c) Both (a) and (R) are true and (R) is the correct explanation of (a)
(d) Both (a) and (R) are true but (R) is not the correct explanation of (A) - Match the following :
List – I List – II (Methods of wage payment) (Base) a. Time wage i. Bonus b. Piece wage ii. Minimum wage c. Balance wage iii. Production d. Incentive wage iv. Hours Plans Codes :
a b c d
(a) ii i iv iii
(b) iv iii ii i
(c) iv iii i ii
(d) iii iv ii i - Match the following :
List – I List – II a. Intelligence tests i. Measures basic human nature b. Aptitude tests ii. Measure the current proficiency c. Personality tests iii. Measure an individual’s potential to learn certain skills d. Achievement iv. Measure tests mental ability Codes :
a b c d
(a) iv iii i ii
(b) ii i iv iii
(c) iv ii i iii
(d) iii iv ii i - In order to control credit.
(a) CRR should be increased and bank rate should be decreased
(b) CRR should be decreased and bank rate should be decreased
(c) CRR should be increased and bank rate should be increased
(d) CRR should be decreased and bank rate should be increased - ‘Repo Rate’ refers to the rate at which
(a) RBI borrows short term money from the market
(b) Banks keep the money with RBI
(c) Bills are discounted by RBI
(d) Forex is purchased by RBI - The concept of mutual funds was started with unit schemes of Unit Trust of India during
(a) 1964
(b) 1974
(c) 1984
(d) 1994 - Which bank took over the entire undertaking of the ARDC ?
(a) RBI
(b) NABARD
(c) SBI
(d) SEBI - Match the following :
Bank Merged with a. New Bank of India i. Punjab National Bank b. Bank of Madhura ii. HDFC Bank c. Times Bank iii. Oriental Bank d. Global Trust Bank iv. ICICI Bank Codes :
a b c d
(a) ii iii i iv
(b) i iv ii iii
(c) iii i iv ii
(d) iv i iii ii - Which of the following is not a form of Foreign Direct Investment ?
(a) Purchase of existing assets in a foreign country
(b) Purchase of foreign currency convertible bonds
(c) Participation in a joint venture with a foreign firm
(d) Transfer of human resources for equity in foreign companies - The rate at which demand for the foreign exchange and the supply of foreign exchange are equal, is called
(a) Exchange rate
(b) Payment rate
(c) The equilibrium exchange rate
(d) The BoPexchange rate - BRICS includes
(a) Bhutan, Romania, Indonesia, Chile and South Korea
(b) Brazil, Russia, Indonesia, Chile and Sudan
(c) Brazil, Russia, India, China and South Africa
(d) Britain, Russia, India, Chile and Sri Lanka - Which of the following is the Central Institution of the International Monetary System ?
(a) Asian Development Bank
(b) International Monetary Fund
(c) Bank of International Settlements
(d) World Trade Organization - When the Balance of Payments shows either a surplus or a deficit, it is called
(a) Cyclical disequilibrium
(b) BoPdisequilibrium
(c) Structural disequilibrium
(d) Development disequilibrium - Which of the following is included in current account of Balance of Payment ?
(a) International capital transfers
(b) Foreign debts
(c) Commodity imports and exports
(d) Long term financial transactions - Unilateral payment received from abroad are considered as
(a) Debits of capital account of balance of payment
(b) Credits of current account of Balance of payment
(c) Credits of unilateral transfers account
(d) Debits of current account - Arrange the following Regional Trade Blocs in sequence as per the year in which they came into being :
1. EEC
2. NAFTA
3. ASEAN
4. SAARC
Codes :
(a) 4, 1, 3, 2
(b) 1, 3, 2, 4
(c) 2, 3, 1, 4
(d) 1, 4, 3, 2 - Arrange the following stages of evolution of companies in internationalisation of their business.
1. Multinational company
2. Domestic company
3. International company
4. Transnational company
5. Global company
Codes :
(a) 2, 3, 1, 5, 4
(b) 2, 3, 1, 4, 5
(c) 2, 1, 3, 4, 5
(d) 4, 2, 1, 3, 5 - Match the following in List – I with those in List – II :
List – I List – II Goods / Items Entries/Accounts of Balance of Payment a. Merchandise 1. Debit entry of Exports current account b. Invisible 2. Debit entry of imports capital account c. Capital outflow 3. Credit entry of current account d. Dividends on 4. Credit entry of investments capital account made in abroad Codes :
a b c d
(a) 4 2 3 1
(b) 1 2 3 4
(c) 1 4 3 2
(d) 3 1 2 4 - The first Indian to suggest a model for human resource valuation and accounting is
(a) Das Gupta
(b) Babatosh Banerjee
(c) S. K. Chakraborty
(d) None of these - The sensitivity of a stock’s return to the changes in the market is measured by
(a) Standard deviation
(b) Beta
(c) Alpha
(d) Value-at-risk - A short term lease, which is often cancellable, is known as
(a) Financial Lease
(b) Net Lease
(c) Operating Lease
(d) Leveraged Lease - Which of the following money market instruments would typically be used in international transactions ?
(a) Treasury Bills
(b) Banker’s Acceptances
(c) Commercial papers
(d) Negotiable CDs - Euro issues include
(a) Foreign currency convertible bonds
(b) Global depository receipts
(c) American depository receipts
(d) All the above - Which of the following methods are used for marketing new issues of securities ?
i. Listing of securities
ii. Jobbers and Brokers
iii. Private placement
iv. Privileged subscriptions
Codes :
(a) i and ii
(b) ii and iii
(c) iii and iv
(d) i, ii, iii and iv - Assertion (a) : Blue chip shares are listed on the stock exchange.
Reasoning (R) : Blue chip shares give consistent high dividends.
Codes :
(a) Both (a) and (R) are right
(b) Both (a) and (R) are wrong
(c) (a) is right but (R) is wrong
(d) (a) is wrong but (R) is right - Match List – I with List – II
List – I List – II a. Market risk i. Marketability of security b. Interest risk ii. Price volatility c. Business risk iii. Bank Rate d. Liquidity risk iv. Recession Codes :
a b c d
(a) i iii iv ii
(b) ii iii iv i
(c) i ii iii iv
(d) iv iii ii i - The Bond is sold at par, if the rate of interest is
(a) Equal to its YTM
(b) More to its YTM
(c) Less to its YTM
(d) Zero - To levy income tax on a corporate assessee, the company’s residential status is decided on the basis of
(a) Company’s management and control (domestic or foreign)
(b) Nature of the company
(c) Profits of the company
(d) Ownership of the company - Depreciation which remains unadjusted can be carried forward for a period of
(a) 4 years
(b) 8 years
(c) 6 years
(d) Till it is fully adjusted - For a corporate assessee, the due date for filing an Income-tax return is
(a) 30th September of every A.Y.
(b) 30th June of every A.Y.
(c) 30th November of the A.Y.
(d) None of the above - Which of the following is/are treated as deemed profits under Section 41 of I.T. Tax ?
(a) Balancing charge
(b) Profit on sale of assets used for scientific research
(c) Bad debts allowed earlier but recovered now
(d) All the above - Assume that the municipal value of a house property is Rs. 1,05,000 fair rent is Rs. 1,07,000, the standard rent is Rs. 1,35,000 and the actual rent is Rs. 97,000. The gross annual value of the house property will be
(a) Rs. 1,07,000
(b) Rs. 1,35,000
(c) Rs. 97,000
(d) None of these - An American citizen came to India for the first time on May 28, 2017 and stayed upto December 5, 2017. His residential status will be
(a) Resident
(b) Resident but not ordinarily resident
(c) Non-resident
(d) Indeterminate - All assessees are required to follow uniform previous for all sources of income w.e.f. the assessment year
(a) 1989-90
(b) 1999-2000
(c) 2009-2010
(d) 2013-2014 - Mr. A has invested Rs. 1,00,000 in 9% tax-free debentures of a company. Interest accrues on 1st January of every year. If the rate of deduction of tax at source is 10%, his taxable income for the previous year 2017-18 will be
(a) Rs. 9,000
(b) Rs. 10,000
(c) Rs. 11,000
(d) None of these - Income earned and received outside India, from business controlled from outside India is not taxable in India when an assessee is
i. Resident and ordinarily resident
ii. Resident but not ordinarily resident
iii. Non-resident in India
Codes :
(a) i and ii
(b) ii and iii
(c) i and iii
(d) i, ii and iii - Match the List – A with List – B :
List – A List – B a. Voluntary return of income i. Section 139(5) b. Return of loss ii. Section 139(4) c. Belated return iii. Section 139(3) d. Revised return iv. Section 139(1) Codes :
a b c d
(a) ii iii iv i
(b) iii iv i ii
(c) i ii iii iv
(d) iv iii ii i - Assertion (a) : Both tax planning and tax avoidance are legal and aim at reducing tax liability.
Reasoning (R) : Tax planning follows the intent of the Income Tax Act, whereas the tax avoidance looks at the flaws in the law to serve the purpose.
Codes :
(a) Both (a) and (R) are correct
(b) Both (a) and (R) are incorrect
(c) (a) is correct and (R) is incorrect
(d) (a) is incorrect and (R) is correct