UGC NET COMMERCE
SOLVED PAPERS
PAPER.II
Note : This paper contains
fifty (50) objective-type questions,
each question carrying two (2)
marks. Attempt all of them.
1. What is the target of GDP growth rate envisaged in the 10th
Five year plan ?
(A) 10% (B) 9% (C) 8% (D) 11%
2. Kyoto Protocol is relating to :
(A) Competition (B) Consumer
Protection
(C) Environment Protection (D) Atomic Energy generation
3. Which of the following should be achieved by a business firm at
the earliest ?
(A) Budgeted sales (B) Break-even Point
(C) ROI (D) Market share
4. What does the lower Debtor-Turnover Ratio indicate ?
(A) Quick recovery (B) Delay in recovery
(C) High Debtors (D) None of the
above
5. Price discrimination policy helps in increasing profits in case
of :
(A) Perfect competition (B) Monopolistic Competition
(C) Monopoly (D) Oligopoly
6. The nature of Cross-price elasticity of demand in case of
complementary products will be :
(A) Positive (B) Negative
(C) (A) and (B) both (D) Zero
7. Depiction of relationship present between two variables is
called :
(A) Correlation (B) Regression
(C) Dispersion (D) Location
8. RAM stands for :
(A) Random Access Memory (B) Readable Access Memory
(C) Read A Machine (D) Read A
memory
9. According to David C.
McClelland, an individual’s major motive to work
include the need for :
(A) Achievement (B) Affiliation
(C) Power (D) All of the above
10. In the line and staff form, the function of staff is to :
(A) Obey the line (B) Serve the
line
(C) Inform the line (D)
Advise the line
11. Branding decisions are based on :
(A) Market Research (B) Assessment
of customer needs
(C) Cost of the product (D)
(A) and (B) above
12. 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
13. What are the
Considerations in designing capital
structure of a corporate ?
(A) Trading on Equity (B) Cost of
Capital
(C) Profitability (D)
All of the above
14. Which of the following methods of inventory valuation results
in lower valuation of inventory
and low income when inflation is on the rise ?
(A) LIFO (B) FIFO (C) Simple
average method (D) Weighted average method
15. HRM is concerned with :
(A) Workers (B) Managers
(C) Field staff (D)
All employees
16. The sum total of emotional and informational behaviour is
called :
(A) Motivation (B) Talent (C)
Intuition (D) Attitude
17. NABARD has been established on
the recommendation of :
(A) Talwar Committee (B) Tandon
Committee
(C) CRAFI CARD (D) James Raj Committee
18. Reserve Bank of India is :
(A) an extension wing of Ministry
of Finance, Government of India.
(B) a body Corporate, having
perpetual succession and a Common Seal.
(C) an institution owned by Indian Banks Association.
(D) a Private Sector Company.
19. A Derivative is a :
(A) Derived asset (B) Derived financial asset
(C) Derived from net assets (D)
None of the above
20. Intellectual Property Rights are pertaining to :
(A) Medicines already patented
(B) Matters published on or before
1990
(C) Import of goods and services
(D) None of the above
21. Which one of the following pairs is not correctly matched ?
(A) Capital Expenditure : Transportation costs of a machine
(B) Funds Flow Statement : Working Capital
(C) Reduction of Share Capital :
Reconstruction
(D) Contribution : Sales — Cost
22. Consumer attains equilibrium when he maximises his utility,
given his income and market prices of two products of :
(I) Marginal rate
of substitution be
equal to the
ratio of commodity
prices i.e.
MRSXY = MUX / MUY = PX / PY
(II) Indifference curve is convex
to the origin.
(A) Only (I) is true
(B) Both (I) and (II) are true
(C) Only (II) is true
(D) Neither (I) nor (II) is true
23. Assertion (A) : Chi-Square test
is used to measure
the Association between two attributes.
Reason (R) : We apply Non-parametric tests like
Chi-Square test for data measured on week scale like Nominal Scale or Ordinal
Scale.
(A) (A) is
true but (R) is wrong
(B) (A) is
wrong but (R) is true
(C) Both (A)
and (R) are
wrong
(D) Both (A)
and (R)
are true
24. Assertion (A) : A Manager delegates authority.
Reasoning (R) : Manager wants to shrink his
responsibility.
(A) Both assertion and reasoning are
correct.
(B) Assertion is wrong but
reasoning is correct.
(C) Assertion is correct but
reasoning is wrong.
(D) Both assertion and reasoning are wrong.
25. Arrange the following concepts/acts in the
order in which they came
into force :
(i) Competition Act.
(ii) Foreign Exchange Management
Act.
(iii) Consumer Protection Act.
(iv) Securities and Exchange Board
of India Act.
Code :
(A) (iii) (iv) (ii) (i)
(B) (iv) (iii) (i) (ii)
(C) (i) (ii) (iv) (iii)
(D) (ii) (i) (iii) (iv)
26. How are the
following items arranged
in the liability
side of the Balance Sheet of a Company
?
(i) Current Liability and
Provisions
(ii) Secured Loans
(iii) Share Capital
(iv) Unsecured Loans
(v) Reserve and Surplus
Code :
(A) (i) (ii) (iii) (iv) (v)
(B) (iii) (i) (ii) (iv) (v)
(C) (iii) (v) (ii) (iv) (i)
(D) (iii) (v) (ii) (i) (iv)
27. Elasticity is commonly stated in the form of :
(A) 1% change (B) 5%
change
(C) 5% (D) All of these
28. Which test we normally
apply for Qualitative data ?
(A) ‘t’ test (B) ‘F’ test
(C) x2 chi-square test (D) ‘z’ test
29. Consider the following
steps of process of decision -
making and select
the correct sequence :
(i) Defining the problem.
(ii) Selection of best alternatives
and implementation.
(iii) Considering limiting
factors.
(iv) Considering alternatives.
Code :
(A) (i) (ii) (iii) (iv)
(B) (iii) (i) (iv) (ii)
(C) (i) (iv) (iii) (ii)
(D) (i) (iii) (iv) (ii)
30. A marketing concern generally taps sources for financing its
activities from :
(A) Owned Capital (B) Bank Credit
(C) Trade Credit (D)
All of the above
31. Consider the following steps in the process of Capital
Budgeting :
(i) Identification of investment proposals.
(ii) Fixing priorities.
(iii) Evaluation of various
proposals.
(iv) Selection and preparation of
Capital Budgets.
(v) Implementation.
(vi) Performance Review.
Which of the sequence of these
steps is correct :
(A) (i) (ii) (iii) (iv) (v) (vi)
(B) (ii) (i) (iii) (iv) (v) (vi)
(C) (i) (iii) (ii) (iv) (v) (vi)
(D) (i) (iv) (iii) (ii) (v) (vi)
32. Arrange the following in the order in which they are practised
:
(i) Promotion
(ii) Performance appraisal
(iii) Recruitment
(iv) Training and Development
Code :
(A) (iii) (ii) (iv) (i)
(B) (iii) (ii) (i) (iv)
(C) (iii) (i) (iv) (ii)
(D) (iii) (iv) (ii) (i)
33. E-banking is synonymous with :
(A) Tele - Banking (B)
Internet Banking
(C) Euro Banking (D) None of the
above
34. Arrange the following in the order of their inception :
(i) WTO
(ii) World Bank
(iii) SAFTA
(iv) ADB
Code :
(A) (ii) (iv) (i) (iii)
(B) (iii) (i) (iv) (ii)
(C) (iv) (iii) (ii) (i)
(D) (i) (iv) (iii) (ii)
35. 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
Code :
(a) (b) (c) (d)
(A) (ii) (iii) (i) (iv)
(B) (ii) (iii) (iv) (i)
(C) (ii) (iv) (iii) (i)
(D) (ii) (i) (iv) (iii)
36. Match the following
:
List - I List - II
(a) Matching Principle (i) Ignores
future profit estimations
(b) Materiality Principle (ii)
Normal basis for valuing assets
(c) Conservatism Principle (iii)
Revenues and expenses of a particular period
(d) Cost Principle (iv)
Relates to relative
size or importance of item or event
Code :
(a) (b) (c) (d)
(A) (i) (iv) (ii) (iii)
(B) (ii) (iii) (iv) (i)
(C) (iii) (iv) (i) (ii)
(D) (iv) (iii) (ii) (i)
37. Match the following
:
Group - I Group - II
(Products) (Market Structure)
(a) Food Grain (i) Monopoly
(b) Air-Lines (ii) Pure Competition
(c) Railway (iii) Monopolistic
(d) Cars (iv) Oligopoly
Code :
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (ii) (iv) (i) (iii)
(C) (iii) (i) (iv) (ii)
(D) (iv) (ii) (iii) (i)
38. Match the following
:
Group - I Group - II
(a) Simple Random Sampling (i)
Hetrogenous
(b) Stratified Random Sampling (ii)
Homogenous
(c) Cluster Sampling (iii)
Chronological list of units
(d) Systematic Sampling (iv) Forest
Tree type units
Code :
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (iii) (i) (iv) (ii)
(C) (ii) (i) (iv) (iii)
(D) (iv) (iii) (ii) (i)
39. Match List
- I with List - II and select the correct answer
using the codes given below the lists :
List - I List - II
(Propounder’s Name) (Theories)
(a) Maslow (i) Hygiene Theory
(b) Herzberg (ii) X and Y Theories
(c) L.G. Urwick (iii) Need
Hierarchy
(d) Mc. Gregor (iv) Z Theory
Code :
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (ii) (i) (iv) (iii)
(C) (iv) (iii) (ii) (i)
(D) (iii) (i) (iv) (ii)
40. Match the following
:
Part - A Part - B
(Market Segmentation) (Factors of
Segmentation)
(a) Psychographic (i) Personality
groups
(b) Demographic (ii) Occupation
(c) Behavioural (iii) Brand Loyalty
(d) Geographical (iv) Population
Size
Code :
(a) (b) (c) (d)
(A) (i) (ii) (iv) (iii)
(B) (ii) (i) (iii) (iv)
(C) (i) (ii) (iii) (iv)
(D) (ii) (i) (iv) (iii)
41. Match the following
:
Part - I Part - II
(a) Total Debt Ratio (i) Total Debt
/ Capital Employed
(b) Debt - Equity Ratio (ii) Total
Debt / Net Worth
(c) Total Capital - Equity Ratio
(iii) Capital Employed / Net Worth
(d) Interest Coverage Ratio (iv) EBIT
/ Interest
Code :
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (ii) (i) (iii) (iv)
(C) (i) (ii) (iv) (iii)
(D) (i) (iii) (iv) (ii)
42. Match Items from List
- I with the Items in List - II :
List - I List
- II
(a) Psychoanalytical Theory (i)
Strong inter linkages
(b) Scientific Management Approach
(ii) Personality
(c) Subsystems of HRM (iii) Task
(d) Basic elements of a Job (iv)
F.W. Taylor
Code :
(a) (b) (c) (d)
(A) (ii) (iv) (i) (iii)
(B) (ii) (iii) (i) (iv)
(C) (i) (iii) (ii) (iv)
(D) (ii) (iv) (iii) (i)
43. Match the following
:
List - I List - II
(Name of the Bank) (Year of
Establishment)
(a) SBI (i) 1990
(b) SIDBI (ii) 1955
(c) NABARD (iii) 1981
(d) EXIM BANK (iv) 1982
Code :
(a) (b) (c) (d)
(A) (ii) (i) (iii) (iv)
(B) (i) (ii) (iv) (iii)
(C) (ii) (iii) (iv) (i)
(D) (ii) (i) (iv) (iii)
44. Match the following
:
List - I List - II
(Export Processing Zones) (Location
in City)
(a) Uttar Pradesh (i) Noida
(b) Tamil Nadu (ii) Chennai
(c) West Bengal (iii) Falta
(d) Andhra Pradesh (iv)
Visakhapatanam
Code :
(a) (b) (c) (d)
(A) (iii) (ii) (iv) (i)
(B) (ii) (i) (iii) (iv)
(C) (i) (ii) (iii) (iv)
(D) (i) (ii) (iv) (iii)
Read the
following passage and answer the
questions from 45 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. It’s 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 Hari buying stocks on
NSE means shedding
its allergy to FII sub-accounts right now.
45. Why was the road map to Convertibility lost its way ?
(A) Low foreign exchange reserve
(B) Ineffective regulatory
frame work
(C) High fiscal deficit
(D) Asian Financial Crisis
46. 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.
47. What we need for full Convertibility ?
(A) Political will
(B) A Committee of Experts
(C) More Institutional Strength
(D) Financial reforms
48. “Financial Reporting must improve”. It refers to :
(A) Indian Economy
(B) R B I
(C) F I I
(D) Companies
49. Selling of doubtful debts to a third party for collection of
the debts is called :
(A) Factoring Service
(B) N P A Service
(C) F I I Service
(D) Restructuring Service
50. Which of the following factors has enhanced the quality of SEBI
regulations ?
(A) Financial Sector Reforms
(B) Tax Reforms
(C) Capital Market Scams
(D) Increasing Foreign Exchange
Reserve