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. Small and Medium Enterprise is
one which has investment in plant and machinery not exceeding :
(A) Rs. 10 crore (B) Rs. 1
crore
(C) Rs. 50 lakhs (D)
Rs. 5 crore
2. FEMA signifies :
(A) Free Export Management Act
(B) Foreign Exchange
Management Act
(C) Foreign Exchange
Monitoring Act
(D) Free Export Marketing Act
3. Planning commission proposed
to target ______ percent yearly growth rate during the 11th Five-year plan.
(A) 8 percent (B) 9
percent (C) 10 percent (D) 8.5 percent
4. The market for long-term
loanable funds is a :
(A) Money Market (B)
Capital Market
(C) Bond Market (D) None of
the above
5. The pre-liberalisation era of
Indian economy was under the grip of :
(A) Unemployment
(B) Under-employment
(C) Fiscal Deficit
(D) Unfavourable and alarming
balance of payments
6. Insurance expense paid to
bring the machine from the place of purchase to the place of installation is :
(A) Capital Expenditure (B) Revenue Expenditure
(C) Deferred Revenue
Expenditure (D) None of the above
7. Which financial statement can
be compared with a still photograph ?
(A) Income statement (B)
Balance sheet
(C) Cash - Flow statement (D)
Funds - Flow statement
8. The working capital ratio is :
(A) Working Capital / Sales
(B) Working Capital / Total Assets
(C) Current Assets / Sales
(D) Current Assets / Current
Liabilities
9. An investment centre can be
evaluated by :
(A) Profit (B) Return on sales
(C) ROI (D) None of the above
10. Which cost is taken into
consideration for “make or buy” decisions ?
(A) Prime cost (B)
Total cost
(C) Cost of production (D)
Relevant cost
11. Which of the following is not
the feature of monopolistic competition ?
(A) Fairly large number of
firms
(B) Co-existence of efficient
and inefficient firms
(C) Product homogeneity
(D) Independent price-output
policy
12. Which of the following is not
a condition for successful price-discrimination ?
(A) Different elasticity of
demand for different consumers
(B) Seller should be an MNC
(C) Location of markets at
distant places
(D) Consumers ignorance and
prejudices
13. Which of the following does
not influence the individual demand for a product ?
(A) Price of product
(B) Price of close substitute
(C) State of production
technology
(D) Change in climatic
conditions
14. What is the nature of
Elasticity of Demand for luxury items like high-class furniture’s ?
(A) Unit elastic (B)
Highly elastic
(C) Fairly elastic (D) Zero
elastic
15. The % change in demand for a
product A divided by the % change in price of product B indicates the degree of
:
(A) Price Elasticity of Demand
(B) Cross Elasticity of Demand
(C) Income Elasticity of
Demand
(D) Advertising Elasticity of
Demand
16. t-test is a :
(A) Parametric Test (B) Non - parametric Test
(C) Large sample test (D) None
of the above
17. The causal relationship is
indicated by :
(A) Correlation (B) Regression
(C) Association (D) None of
the above
18. Systematic sampling belongs to
:
(A) Quota sampling (B)
Non-probability sampling
(C) Probability sampling (D) None of the above
19. 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 of
companies (ii) Information system
(c) Multi-variate (iii)
Hypothesis testing
(d) Data processing (iv)
Factor analysis
Codes :
(a) (b) (c) (d)
(A) (iv) (ii) (i) (iii)
(B) (iii) (i) (iv) (ii)
(C) (iii) (iv) (i) (ii)
(D) (iv) (i) (iii) (ii)
20. E - Commerce relates to :
(A) B - to - B (B) C - to - C
(C) B - to - C (D)
All of the above
21. Who is the father of
principles of management ?
(A) Fleming (B) Bavnard
(C) F.W. Taylor (D)
Henry Fayol
22. What is M.B.O. ?
(A) Management by Organization
(B) Multiple Business Organization
(C) Management by Objectives (D) Multiplicity of Business
Operations
23. The tool adopted to change
corporate culture is :
(A) Managerial Grid (B) Hierarchy
(C) Span of Control (D) Seven
.s. Framework
24. What does Maslow Theory of
Motivation convey to management ?
(A) Satisfied need is a
motivator
(B) Satisfied need is no more
a motivator
(C) Needs are not motivators
(D) Needs need not be
considered
25. Ethics is derived from :
(A) Bible (B) Bhagabat Geetha
(C) Quoran (D)
From all of the above
26. Who propounded 4Ps of
marketing ?
(A) Philip Kotler (B) Kelker
(C) McAurthy (D) Peter F. Drucker
27. What is cognitive dissonance ?
(A) Buying Behaviour (B)
Pre-purchase Behaviour
(C) Post-purchase Behaviour (D) Buying indifference
28. Product(s) which defied PLC
concept :
(A) Amrutanjan (B) Horlicks
(C) Hairpins (D) All of the above
29. Skimming price relates to :
(A) Charging competitive price
(B)
Charging high initial price
(C) Charging low initial price
(D) None of the above
30. Promotion-mix includes :
(A) Advertising and personal
selling
(B) Personal promotion
(C) Product improvement (D)
None of the above
31. Cost of capital does not mean
:
(A) Cut off rate decided by
management
(B) Rate of interest
(C) Expectations of investors
for dividend
(D) Money paid to SEBI for
permission to acquire capital
32. Financial Leverage is intended
to :
(A) Increase return on capital
employed
(B) Increase net equity return
(C) Decrease volatility in
return
(D) Increase return on capital
employed and net equity
33. Budget which is directed
towards long-term strategic goals is known as :
(A) Zero - base Budget (B)
Capital Budget
(C) Rolling Budget (D) Master
Budget
34. Which of the following is not
very much relevant in dividend decision ?
(A) Availability of disposable
profit
(B) Investors. expectations
for dividend
(C) Capital market conditions
(D) Industry practice
35. Which of the following is not
an application of working capital ?
(A) Day - to - day expenditure
of business
(B) Current obligations for
payment
(C) Expenditure in the usual
course of business
(D) Expenditure to acquire
capital
36. Human Resource Management
emphasises :
(A) Development of people (B) Punishment of people
(C) Adoption of people (D)
None of the above
37. Induction means :
(A) Training (B) Promotion
(C) Incentives (D)
Introduction
38. Workers participation in
management in any organization is :
(A) Voluntary (B) Institutional
(C) Democratic (D) All of the above
39. Employee morale relates to :
(A) Productivity (B)
Attitude (C) Empathy (D) Skills
40. Glass ceiling relates to :
(A) Ergonomics (B)
Gender Bias
(C) Recruitment (D) Promotion
41. Which bank was incorporated as
one of the public sector banks in India during 2004 - 05.
(A) ICICI Bank Ltd (B) Yes
Bank Ltd
(C) IDBI Bank Ltd (D) UTI Bank Ltd
42. The short-term money market
comprises :
(A) The call money market
(B) The inter-bank deposit
market
(C) The bills re-discounting
market
(D) All of the above
43. Annual Report on Currency and
Finance is published by :
(A) SIDBI (B) RBI
(C) Ministry of Finance (D)
None of the above
44. Bank deposit refers to :
(A) The amount of money
standing to the credit of a customer of a bank
(B) A term used by the Federal
Reserve to refer to the total deposits of member banks
(C) The amount of money
standing to the debit of a customer of a bank
(D) All of the above
45. Which of the following is the
latest buzzword among bankers ?
(A) Social Banking (B)
Financial inclusion
(C) Mass Banking (D) None of the above
46. The balance of payments
account is conventionally divided into :
(A) Current Account and
Capital Account
(B) Visible Account and
Invisible Account
(C) Long-term Capital Account
and Short-term Capital Account
(D) None of the above
47. What is Euro - III ?
(A) European Currency (B)
Group of European Countries
(C) European Film Festival (D)
Pollution Control Scale
48. The Comparative Cost Theory of
International Trade was developed by :
(A) David Ricardo (B) Haberlar
(C) Adam Smith (D) Alfred
Marshal
49. Which institution is known as
the .soft loan window. of World Bank ?
(A) IMF (B) IFC
(C) IDA (D) None of the above
50. The 21st member to join the G
- 20 is :
(A) Sri Lanka (B) Uzbekistan
(C) Myanmar (D) Uruguay