UGCNET - Commerce 08 (Dec' 2005) - Paper II | UGC NET Solved Papers Commerce


Note : This paper contains fifty (50) objective-type questions, each question carrying two (2) marks.  Attempt all of them.

1. __________ is a permanent inter-governmental body governing and regulating international trade in goods and services.
(A) G.A.T.T. (B) EXIM Bank (C) W.T.O. (D) I.M.F.

2. Fiscal deficit in the Union Budget means :
(A) The sum of budgetary deficit and net increase in internal and external borrowings
(B) The difference between current expenditure and current revenue
(C) The sum of monetised deficit and budgetary deficit
(D) Net increase in Union Government borrowings from the Reserve Bank of India

3. The objective of __________ is to achieve “growth with equity”.
(A) The Ninth Plan (B) The Tenth Plan
(C) The Eighth Plan (D) The Seventh Plan

4. The significant development in the sphere of foreign exchange was the introduction of __________ .
(A) Foreign Exchange Regulation Act (FERA)
(B) Foreign Exchange Management Act (FEMA)
(C) The Export-Import Policy, 2005-06
(D) EXIM Bank

5. The term “industrial policy” refers to :
(A) the rules and regulations relating to the establishment of industrial undertakings and their expansion
(B) remove the structural, financial, fiscal, administrative, infra structure related impediments to the efficient functioning of a market oriented economy
(C) the culmination of liberalisation programme
(D) increase the efficiency of public sector undertakings

6. Who are the customers of cost and management accounting?
(A) Managers (B) Creditors (C) Lenders (D) Consumers

7. Which of the following is an efficiency ratio ?
(A) Price-Earning Ratio (B) Debt-Equity Ratio
(C) Acid-Test Ratio (D) Average collection period

8. What do you mean by “cash equivalents”?
(A) Bank balance (B) Short -term highly liquid securities
(C) Investments (D) Investment in debentures

9. The profits calculated by marginal costing and absorption costing are different because of:
(A) Capital and revenue (B) Opening stock
(C) Valuation of stock (D) Closing stock

10. Match the items from List-I with the items in List-II :
List - I List - II
(a) Error of Principle (i) A purchase of Rs. 1000/- has not been recorded
(b) Error of Commission (ii) Treating repair charges as addition to assets
(c) Error of Omission (iii) A sale of Rs. 563 was posted as Rs. 653
(d) Compensatory error (iv) Sales book is undercast by Rs. 1000/- and return inward book is overcast by Rs. 1000
(v) Return  inward  book  is  undercast  by Rs. 1000/- and purchase book is overcast by Rs.1000/-
Codes :
      (a) (b) (c) (d)
(A) (ii) (iii) (i) (iv)
(B) (ii) (iii) (iv) (v)
(C) (iv) (ii) (i) (iii)
(D) (ii) (iii) (i) (v)

11. Which of the following is not the method of forecasting demand ?
(A) Collective opinion method (B) Total outlay method
(C) Expert opinion method (D) Controlled opinion method

12. When marginal utility is negative then total utility ?
(A) increases (B) decreases (C) is zero (D) is negative

13. Which of the following is a correct statement ?
(A) Decrease in input prices causes a leftward shift in the supply curve
(B) The desire for a commodity backed by ability and willingness to pay is demand
(C) When income increases, the demand for essential goods increases more than proportionately
(D) The demand for a commodity is inversely related to the price of its substitutes

14. When goods in the domestic market are sold at a high price and in the foreign market at a low price, it is a situation of:
(A) Dumping (B) Perfect competition
(C) Oligopoly (D) Duopoly

15. Average revenue curve will not touch 0 - X axis because it cannot be :
(A) Positive (B) Zero
(C) Negative (D) None of the above

16. “Parameter” refers to the characteristics of the :
(A) Population (B) Sample
(C) Mean (D) None of the above

17. The median of 10, 12, 14, 16, and 18 will be :
(A) 12 (B) 16 (C) 15 (D) 14

18. Probability sampling and random sampling are :
(A) Anonymous (B) Different terms
(C) Synonymous (D) None of the above

19. “F” ratio refers to :
(A) ratio between two means (B) ratio between two standard deviations
(C) ratio between two correlations (D) ratio between two variances

20. Match the items from List-I with the items in List-II.
                                List - I List - II
(a) t-test (i) secondary data
(b) Regression test (ii) systematic sampling
(c) Published sources (iii) hypothesis test
(d) Probability sampling (iv) quota sampling
(v) multi-variable analysis
Code :
     (a) (b) (c) (d)
(A) (v) (ii) (i) (iv)
(B) (v) (iii) (i) (iv)
(C) (iii) (v) (i) (ii)
(D) (v) (ii) (i) (iv)

21. The Plan for meeting the challenges of the competitors is called a :
(A) Programme (B) Mission
(C) Derivative Plan (D) Strategy

22. The chief contribution of Henry Fayol to management is that he :
(A) provided a conceptual frame-work
(B) formulated the management process approach
(C) evolved two principles of management
(D) stressed the need for management education based on management

23. Which type of managerial decision correspond to .basic decisions. ?
(A) Mechanical decision and analytic decision
(B) Judicious decision and adoptive decision
(C) Judicious decision, adoptive decision and analytic decision
(D) All of the above

24. The process of combining the main industrial unit with all other related units is called :
(A) Divergent Lateral combination (B) Convergent Lateral combination
(C) Horizontal combination (D) Vertical combination

25. The lack of faith and confidence of managers in subordinates is an important barrier of :
(A) Effective leadership (B) Effective control
(C) Effective delegation (D) Effective direction

26. Post purchase dissatisfaction in marketing is known as :
(A) Caveat emptor (B) Cognitive dissonance
(C) Brand III loyalty (D) None of the above

27. Needs for goods and services are more homogenous in :
(A) Industrial market (B) Consumer market
(C) Domestic market (D) None of the above

28. Marketing concept means :
(A) Firms should produce only what their pre-determined consumers would be willing to buy
(B) Firms should persuade customers to buy what they have produced
(C) The consumers will buy the products which offer them the highest quality
(D) All of the above

29. The process of dividing a potential market into distinct subsets of consumers and selecting one or more segments as a target to be reached with a distinct marketing mix means :
(A) Marketing (B) Positioning
(C) Targeting (D) None of the above

30. What is the basis for segmenting vitamin market ?
(A) Age (B) Place of distribution
(C) Formulation (D) All of the above

31. Financial Risk means :
(A) Risk of Technical insolvency (B) Magnify the fluctuation in EBT
(C) Both (A) and (B) (D) None of the above

32. The financial management is concerned with the:
(A) Procurement of funds and their effective utilisation
(B) Raising of funds from the market
(C) Management of Working Funds only
(D) Investing funds in the most appropriate assets

33. M.M. Approach is similar to __________ approach.
(A) Net Income Approach (B) Net Operating Income Approach
(C) Both (A) and (B) (D) None of the above

34. If the sales are Rs. 6000, variable cost Rs. 3600 and fixed cost Rs. 2000, the Break-even point will be :
(A) 5000 units (B) 5400 units (C) 6000 units (D) 4000 units

35. Which is an incorrect statement ?
(A) The issue of Bonus shares is subject to sanction from the SEBI
(B) The prior approval of capitalisation of reserves upto Rs. 1 crore is totally exempted
(C) Bonus issues beyond the ratio of 1:1 is not permitted
(D) Partly paid equity shares are issued as bonus shares

36. Job analysis provides information used for writing :
(A) Organisation chart (B) Policy
(C) Job Description (D) Procedure

37. Recruitment and selection involves the following except :
(A) Building a pool of candidates
(B) Completing application forms by applicants
(C) Reduction of the work force
(D) Employment planning and forecasting

38. __________ is the process of deciding how to fill the company’s most important executive positions.
(A) Succession Planning (B) Organisational Restructuring
(C) Self-directed Teams (D) Corporate Downsizing

39. Which of the following is not necessary for promotion from within ?
(A) Job posting (B) Advertisements
(C) Personnel Records (D) Performance Appraisal Form

40. Performance appraisal means evaluating an employee’s performance relative to :
(A) Established goods (B) Fellow employees
(C) Job description requirements (D) Performance standards

41. A __________ card is basically a payment mechanism which allows the holder of the card to make purchases without any immediate cash payment.

42. Which of the following is a measure of selective credit control ?
(A) Bank rate policy (B) Moral suasion
(C) Statutory cash reserve ratio (D) Open market operations

43. Which of the following sentence is false ?
(A) Nationalisation of commercial banks has achieved its objectives
(B) Prior to nationalisation, commercial banks in India were generally concerned with profit maximisation only
(C) Nationalisation has enhanced the efficiency of commercial banks
(D) Bank nationalisation in India was prompted by the necessity of credit facilities reaching the rural sector and weaker sections of the society

44. Which of the following statement is true ?
(A) The currency notes issued by RBI are legal tender throughout the world
(B) The treasury bills are sold by the RBI for raising its working capital
(C) All commercial banks, including those owned by Government, need a license from the RBI to do banking business.
(D) The RBI is a banker to both central and state governments

45. M. Narasimham headed :
(A) The working group constituted by the Government of India in July 1975 for the establishment of Regional Rural Banks
(B) The committee on the financial system, 1991
(C) The committee on Banking Sector Reforms, 1997
(D) All of the above

46. The gains from two nations depend on :
(A) Domestic barter rates
(B) Difference in the domestic barter rates of the two countries
(C) Terms of trade
(D) Degree of absolute advantage

47. The trade theory of comparative advantage was developed by :
(A) Haberler (B) Adam Smith
(C) Alfred Marshall (D) David Ricardo

48. Which items are included in the negative list of imports out of the combination given below :
(1) Canalised items
(2) Banned items
(3) Restricted items
(4) Items of open General Licence
(A) 1, 3 and 4 (B) 2, 3 and 4
(C) 1, 2, 3 and 4 (D) 1, 2 and 3

49. If a country has deficit in balance of current account, balance of capital account will be :
(A) Zero (B) Surplus (C) Deficit (D) None of the above

50. When custom duty is levied according to weight of goods it is known as :
(A) Excise duty (B) Ad-valorem duty
(C) Revenue duty (D) Specific duty