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. The choice of distribution
channel is affected by:
(A) Market consideration (B)
Product consideration
(C) Middle man consideration (D)
All of the above
2. Who is the custodian of
monetary reserves in India ?
(A) SBI (B) SIDBI (C) NABARD (D)
RBI
3. Who is the fiscal agent and
advisor to government in monetary and financial matters in India ?
(A) SBI (B) IDBI (C) ICICI (D)
RBI
4. During the depression, it is
advisable to :
(A) Lower Bank Rate and
purchase securities in the market
(B) Increase Bank Rate and
purchase securities in the open market
(C) Decrease Bank Rate and
sell securities in the open market
(D) Increase Bank Rate and
sell securities in the open market
5. Nationalization of banks aimed
at all of the following except :
(A) Removal of control by a
few
(B) Provision of control by a
few
(C) Provision of adequate
credit for agriculture, small industry and export units
(D) Encouragement of a new
class of entrepreneur
6. The portion of total deposits
of a commercial bank which it has to keep with RBI in the form of cash reserves
is termed as:
(A) CRR (B) SLR (C) Bank Rate (D)
Repo Rate
7. The emphasis of Human Resource
Management is :
(A) Development (B) Punishment
(C) Promotion (D) Demotion
8. The purpose of Job evaluation
is :
(A) Training (B) Promotion
(C) Wage fixation (D) Transfer
9. Induction means :
(A) Training (B)
Orientation
(C) Introducing the employee
(D) Certification
10. Labour productivity means :
(A) output is greater than
input
(B) output is less than input
(C) output is equal to input
(D) output is negative
11. Which of the following relates
to performance appraisal ?
(A) Task method (B) Price
method
(C) M.B.O. (D) Link method
12. Capital structure represents :
(A) Ratio between different
forms of capital
(B) All liabilities
(C) All assets
(D) Assets and liabilities
13. The item, closing inventory,
is shown in the balance-sheet under :
(A) Fixed Assets (B)
Current Assets
(C) Current Liabilities (D)
Miscellaneous Expenditure
14. Trading on Equity means :
(A) Trading on arrears funds (B)
Trading on borrowed funds
(C) Trading on family funds
(D) Trading on friend’s funds
15. Marketing process involves :
(A) Time utility (B) Place
utility
(C) Right utility (D)
All of the above
16. Which of the following
activities are covered under physical distribution ?
(A) Inventory (B) Packaging
(C) Transportation (D)
All of the above
17. Which of the following step
comes first in the selection process ?
(A) Test (B) Application blank
(C) Screening (D) Medical
examination
18. M - M Theory in perfect market
suggests that dividend payment :
(A) has a positive impact on
the value of a firm
(B) has no impact on the value
of a firm
(C) has a negative impact on
the value of a firm
(D) has negligible impact on
the firm
19. To manage . is the forecast
and plan, to organise, to command, to co-ordinate and to control.. These are the words of :
(A) Koontz and O.Donnel (B)
Henry Fayol
(C) F.W. Taylor (D) Peter F.
Drucker
20. Chunk sampling is known as :
(A) Quota sampling (B)
Convenience sampling
(C) Judgement sampling (D)
Cluster sampling
21. The first electronic computer
system was developed in :
(A) 1920 (B) 1930 (C) 1935 (D)
1940
22. When management pays attention
to more important areas looked after by lower level of management, this is known
as :
(A) MBO (B) Management by exception
(C) Unity of command (D)
Critical path method
23. Policy making is an important
part of the process of :
(A) Planning (B) Coordinating
(C) Organising (D) Motivating
24. Which of the management
functions are closely related ?
(A) Planning and organization (B)
Staffing and control
(C) Planning and control (D)
Planning and staffing
25. .Grapevine. is a term used in
relation to :
(A) formal
(B) informal communication
(C) both formal and informal
communication
(D) this term is not used in
relation to communication
26. The function of .staff. in an
organisation is :
(A) take advice from the line
(B) advice the line
(C) hold authority and
responsibility
(D) fix responsibility for
performance of tasks in a definite manner upon certain individuals
27. Break-Even analysis deals with
:
(A) relationship between cost
and cost mix
(B) relationship between cost,
output and profits
(C) relationship between cost
and sales
(D) relationship between
profit and sales
28. Dissolution of firm takes
place :
(A) By the death or insolvency
of any one partner
(B) The retirement of any one
partner
(C) By the expiry of term
(D) By the insolvency of all
but one partner
29. X Ltd. purchased land and
building worth Rs. 28,80,000 and in lieu issued debentures of Rs. 100 each at a
discount of 4%. What are the number of
debentures issued ?
(A) 28,800 (B)
30,000 (C) 32,000 (D) 34,000
30. X, Y and Z are partners in the
ratio of ½ : 2/5 : 1/10 what will be new ratio of the remaining partners if X retires :
(A) 2 : 1 (B) 4 : 1 (C) 5 : 1 (D) 3
: 1
31. Match items in List-I with items in List-II.
List-I List-II
(a) Mega Marketing (i)
Advertising
(b) Skimming Price (ii) Post
Purchase Behaviour
(c) Promotion mix (iii) High
Price
(d) Customer dissonance (iv)
Philip Kotler
Codes :
(a) (b) (c) (d)
(A) (iv)
(iii) (i) (ii)
(B) (i) (ii) (iii) (iv)
(C) (iii) (i) (iv) (ii)
(D) (ii) (iv) (iii) (i)
32. Match the following :
List-I List-II
(a) Merchandise exports (i)
Purchase of foreign goods
(b) Merchandise imports (ii)
Sales of goods abroad
(c) Investment Income (iii)
Largely caused by excess of imports over exports in merchandise
(d) Balance of Payments
Deficits (iv) Dividends, interest etc. received from abroad
Codes :
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (ii) (iii) (iv) (i)
(C) (ii) (i) (iv) (iii)
(D) (iii) (iv) (ii) (i)
33. Match items in List-I with items in List-II :
List-I List-II
(a) ABC analysis (i)
Profitability
(b) ROI (ii) Inventory control
(c) Contribution Margin (iii)
Project evaluation
(d) NPV (iv) B/E analysis
Codes :
(a) (b) (c) (d)
(A) (iii) (ii) (i) (iv)
(B) (ii)
(i) (iv) (iii)
(C) (iv) (ii) (i) (iii)
(D) (i) (iii) (ii) (iv)
34. Match the following :
List-I List-II
(a) Going Concern Concept (i)
The same accounting method used by a firm from one period to another
(b) Consistency (ii) Relates
to the relative size or importance of an item or event
(c) Cost principle (iii) An
inappropriate assumption for a firm undergoing bankruptcy
(d) Materiality (iv) The
normal basis used to account for assets
Codes :
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (iv) (iii) (ii) (i)
(C) (iii) (ii) (iv) (i)
(D) (iii)
(i) (iv) (ii)
35. Match the following :
List-I List-II
(a) Smoothed Frequency Curve
(i) To determine and portray the number of proportions of cases
(b) Histogram (ii) It is one
dimensional
(c) Bar diagram (iii) It is
two dimensional
(d) Ogive (iv) Can be drawn
through various points of polygon
Codes :
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (ii) (iii) (iv) (i)
(C) (iii) (iv) (ii) (i)
(D) (iv)
(iii) (ii) (i)
36. Match the following :
List-I List-II
(a) Merchandise Inventory (i)
Prevents arbitrary changes from one accounting or measurement approach from one
period to another
(b) Comparability Quality (ii)
Inventory of a retailer of wholesaler
(c) Net Realisable Value (iii)
Item acquired by purchase, growth or extraction of natural sources for further processing
(d) Raw Materials Inventory
(iv) Estimated selling price of product in the ordinary course of business
Codes :
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (ii)
(i) (iv) (iii)
(C) (iii) (ii) (i) (iv)
(D) (iv) (i) (ii) (iii)
37. Match the following :
List-I List-II
(a) Maxi-min principle (i)
take minimum pay-off of each action and whichever is minimum is best action
(b) Mini-max principle (ii)
take maximum pay-off of each action and whichever is maximum is best action
(c) Max-max principle (iii)
take maximum pay-off of each action and whichever is minimum is best action
(d) Min-min principle (iv)
take minimum pay-off of each action and whichever is maximum is best action
Codes :
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (ii) (iii) (iv) (i)
(C) (iii)
(iv) (i) (ii)
(D) (iv) (iii) (ii) (i)
38. The hypothesis testing
consists of following steps :
(i) Establish a level of
significance, prior to sampling
(ii) Defining the rejection or
critical regions
(iii) State the hypothesis
(iv) Determination of a
suitable test statistic
Which of the sequence is
correct ?
(A) (ii), (iii), (iv), (i)
(B) (iii),
(i), (iv), (ii)
(C) (iii), (ii), (iv), (i)
(D) (iv), (iii), (ii), (i)
39. Which of the following
liabilities are taken into account for acid test ratio ?
(i) Trade Creditors
(ii) Bank Overdraft
(iii) Bills Payable
(iv) Outstanding Expenses
(v) Redeemable debentures
(A) (i),
(ii), (iii), (iv) and (v) (B) (i),
(ii), (iii) and (iv)
(C) (i) and (ii) only (D) (i), (iii) and (iv)
40. Statements :
(i) Employee development is
more future oriented and more concerned with education than employee training.
(ii) Apprenticeship programme
is one which is widely used off the job training.
(A) Both correct (B) Both
incorrect
(C) (i) correct, (ii)
incorrect (D) (i) incorrect, (ii) correct
41. For profit maximization of a
firm we must have :
(i) MC=MR
(ii) Marginal cost curve cuts
the average cost curve from below.
(A) Only (i) is correct (B)
Only (ii) is correct
(C) Both incorrect (D)
Both correct
42. Statements :
(i) Fringe benefits,
now-a-days are a significant component of .compensation..
(ii) Under piece-rate plan,
employees are paid at a stipulated rate per hour of work done by the employee.
(A) Both are correct (B) Both
are incorrect
(C) (i) incorrect, (ii)
correct (D) (i) correct, (ii) incorrect
43. Statements :
(i) The objective of Finance
function is Wealth maximisation.
(ii) The objective of Finance
function is Profit maximisation
(A) Both correct (B) Both incorrect
(C) (i) correct, (ii)
incorrect (D) (i) incorrect, (ii) correct
44. Statements :
(i) Dividends can be paid only
when there are profits.
(ii) Dividends can be paid
when there are losses
(A) Both are correct (B) Both
are incorrect
(C) (i) is incorrect, (ii) is
correct (D) (i) is correct, (ii) is incorrect
45. Statements :
(i) The greater a firm’s
degree of operating leverage, the more its EBIT will vary with respect to
fluctuations in sales.
(ii) The greater a firms
degree of operating leverage, the less its EBIT will vary with fluctuations in
sales.
(A) Both correct (B)
Both incorrect
(C) (i) correct, (ii)
incorrect (D) (i) incorrect, (ii) correct
The Indian insurance industry
has come a long way. From being providers of tax planning instruments to
introducing concepts of retirement planning, wealth creation etc., customers
are strengthening their ties with this industry every passing day. Today life
insurance is among the fastest growing industries in India. Inspired by
tremendous growth in the life insurance sector, many comparisons - product
features, charge structures, returns etc - have been drawn between life
insurance and other financial services, mostly mutual funds. These comparisons resulted in emergence of
ULIPs as a preferred product and in fact they display some similarities with
MFs. The individual policy holders or retail customers by the product when he
or she wants systematically provide towards a specific important goal. They take money regularly out of their
monthly or annual income to make contribution for their goal, children
education, health etc. Thus investment
policies of life insurance companies are designed to enable policy holders meet
their respective financial goals, while ensuring that the government is
adequately funded for long term projects
46. Which of the following
products are provided by Indian insurance industry ?
(A) Tax Planning (B)
Wealth-Creation
(C) Retirement Planning (D)
All of the above
47. Who is the majority investor
in insurance companies ?
(A) Individual Policy-Holder
or Retail Customer
(B) Corporate Sector
(C) Government Sector
(D) Semi-Government Sector
48. Which of the following is the
primary objective of insurance companies to invest savings of customers ?
(A) Steady increments (B) Risky investments
(C) Short-term investments (D)
Medium-term investments
49. Which type of
customer-behaviour is observed for making investment in insurance companies ?
(A) One-time savings (B)
Regular small-savings
(C) Savings on sudden-gain (D)
Retirement-savings only
50. Insurance Companies and Mutual
Funds both provides to customers :
(A) Insurance Policies only (B)
ULIPs
(C) Bonds (D) Loans