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. Job analysis provides
information used for :
(A) Organisation chart (B)
Policy
(C) Procedure (D) Promotion
2. In functional organisation :
(A) The organisation is
divided according to the type of work involved.
(B) The authority flows from
the man at the top to the lowest man vertically.
(C) Each worker serves only
one supervisor
(D) The organisation is
divided according to the skill required to perform a work.
3. Which of the following relates
to training workers ?
(A) Job rotation (B) Induction
(C) Vestibule (D) Task
4. 360 degree method relates to :
(A) Performance appraisal
(B) Organisation climate
(C) Employees morale
(D) Retrenchment method
5. Human relations approach of
management is associated with :
(A) Abraham Maslow (B) Peter
F. Drucker
(C) Elton Mayo (D) Herzberg
6. Attrition is related to :
(A) Job description (B) Resignation/Termination
(C) Job evaluation (D) Merit
rating
7. The economic reforms have
failed to :
(A) Keep fiscal deficits to
the targeted levels.
(B) Fully implement industrial
deregulation.
(C) Fully open the economy to
trade.
(D) All of the above
8. Which of the following
developments was not noticed during 1991 (economic
reforms) ?
(A) National debt was nearly
60 percent of the GNP of India.
(B) Inflation crossed double
digits.
(C) Foreign reserves were
maintained at a very high level.
(D) None of the above.
9. Which of the following
statement is
incorrect ?
(A) Even monopolistic can earn
losses.
(B) Firms in a perfectly
competitive market are price takers.
(C) It is always beneficial
for a firm in a perfectly competitive market to discriminate prices.
(D) Kinked demand curve is
related to an oligopolistic market.
10. Which of the following is the
best general definition of the study of economics ?
(A) Inflation and unemployment
in a growing economy.
(B) The best way to invest in
the stock market.
(C) Business decision making
under foreign competition.
(D) Individual and social
choice in the face of scarcity.
11. Which of the following
statements is correct ?
(A) Under zamindari system,
farmers directly paid land revenue to the state.
(B) At present, income tax revenues from the
agriculture sector are negligible.
(C) Commercial banks are
providing loans to the agriculture sector at zero interest rate.
(D) None of the above.
12. Which of the following
statements is incorrect ?
(A) About 80 per cent of
agricultural area has irrigation facilities.
(B) About two third area is
rain-fed in India.
(C) Productivity per worker in
agriculture is much lower than that in industry.
(D) Cropping pattern is quite
skewed in India.
13. Abolition of intermediaries and
tenancy reforms area both parts of :
(A) Industrial reforms in
India.
(B) External sector reforms in
India.
(C) Land reforms in India.
(D) Banking reforms in India.
14. Which of the following is not a measure of dispersion ?
(A) Skewness
(B) Mean Deviation
(C) Standard Deviation
(D) Quartile Deviation
15. The immediate solvency ratio
is :
(A) Current Ratio
(B) Quick Ratio
(C) Debtors Turnover Ratio
(D) Stock Turnover Ratio
16. The Foreign Exchange
Management Act (FEMA) was implemented in the year :
(A) 1996 (B) 1997
(C) 1998 (D) 1999
17. SEZ Policy in India is
motivated by the experience of :
(A) Japan (B) China
(C) USA (D) Germany
18. 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.
19. In order to control credit in
the country, the RBI may :
(A) Buy Securities in the open
market.
(B) Sell Securities in the
open market.
(C) Reduce CRR.
(D) Reduce Bank Rate.
20. Which bank is called the .Bank
of Issue. ?
(A) RBI (B) SBI
(C) IDBI (D) ICICI
21. In order to encourage
investment in the country, the RBI may :
(A) Reduce CRR
(B) Increase CRR
(C) Sell Securities in the
open market
(D) Increase Bank Rate
22. The term “funds” as used in “funds
flow statement” means :
(A) Cash
(B) Current Assets
(C) Current Liabilities
(D) Current Assets minus
Current Liabilities
23. What is the .Fundamental
Premise of Economics. ?
(A) Individuals are capable of
establishing goals and acting in a manner consistent with achievement of those
goals.
(B) Natural resources will
always be scare.
(C) Individuals choose the
alternative for which they believe the net gains to be the greatest.
(D) No matter what the
circumstances, individual choice always involve a trade-off.
24. The consumer is in equilibrium
at a point where the budget line :
(A) Is below an indifference
curve
(B) Is above an indifference curve
(C) Is tangent to an
indifference curve
(D) Cuts an indifference curve
25. Which of the following
statements is correct concerning the relationships
among the firm’s functions ?
(A) TC=TFC - TVC
(B) TVC = TFC - TC
(C) TFC = TC - TVC
(D) TC = TVC - TFC
26. In perfect competition in the
long run there will be no__________.
(A) Normal profits
(B) Supernormal profits
(C) Production
(D) Costs
27. An indifference curve slopes
down towards right since more of one commodity and less of another result in :
(A) Same satisfaction
(B) Greater satisfaction
(C) Maximum satisfaction
(D) Decreasing expenditure
28. Which of the following results
in the flow of funds ?
(A) Creditors issued bills
payable
(B) Loss on the sale of
machinery
(C) Transfer to general reserve
(D) Building sold on credit
29. If net profit is Rs. 25,000/-
after writing off preliminary expenses of Rs. 5000/- then the funds from
operation will be :
(A) Rs. 25,000/-
(B) Rs. 30,000/-
(C) Rs. 20,000/-
(D) Rs. 10,000/-
30. Which of the following is a
non-current liability ?
(A) Bills payable
(B) Sundry creditors
(C) Bank overdraft
(D) Long term loans
31. Match the followings :
List
- I List - II
(a) Indira Awas Yojana (i)
This programme was launched in 2001. This programme aims at providing wage employment
in rural areas and food security to the people.
(b) Sampoorna Grameen Yojana
(ii) This is a major scheme for construction of houses to be given to the poor,
free of cost.
(c) Pradhan Mantri Gram Sadak
(iii) This was introduced in April 1999 as a Yojana result of restructuring and
combining the Integrated Rural Development Programme.
(d) Swaran Jayanti Gram
Swarozgar (iv) This was introduced in December 2000 Yojana to provide
road-connectivity through good all weather roads to unconnected villages.
Code :
(a) (b) (c) (d)
(A) (ii) (i) (iv) (iii)
(B) (i) (ii) (iv) (iii)
(C) (iii) (iv) (ii) (i)
(D) (iv) (iii) (ii) (i)
32. Match the following :
List
- I List - II
(a) WTO (i) Provides loans to
address short-term balance of payments problems.
(b) RBI (ii) Multilateral
trade negotiating body.
(c) IMF (iii) Facilitating
lending and borrowing for reconstruction and development.
(d) IBRD (iv) Central Bank of
India.
Code :
(a) (b) (c) (d)
(A) (ii) (iv) (i) (iii)
(B) (iv) (iii) (ii) (i)
(C) (iii) (ii) (iv) (i)
(D) (i) (ii) (iii) (iv)
33. Match the items in List - I with items in List - II :
List - I List -
II
(a) Margin of Safety (i)
Earning Power
(b) ROI (ii) Cash Flow
statement
(c) Current Ratio (iii) Break
Even analysis
(d) Cash Equivalents (iv)
Solvency
Code :
(a) (b) (c) (d)
(A) (ii) (iii) (i) (iv)
(B) (iii) (i) (iv) (ii)
(C) (iv) (ii) (iii) (i)
(D) (i) (ii) (iii) (iv)
34. Match the items in List - I with items in List - II :
List - I List - II
(a) Theory X (i) Participative
(b) Theory Y (ii) Autocratic
(c) Theory Z (iii) Democratic
Codes :
(a) (b) (c)
(A) (i) (ii) (iii)
(B) (ii) (iii) (i)
(C) (iii) (i) (ii)
(D) (ii) (i) (iii)
35. Match the items in List - I with items in List - II :
List - I List -
II
(a) Peter F. Drucker (i) Unity
of command
(b) Henry Fayol (ii)
Achievement Motivation
(c) McAurthy (iii) M.B.O.
(d) McLeland (iv) 4 Ps of
marketing
Code :
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (ii) (iii) (iv) (i)
(C) (iv) (i) (ii) (iii)
(D) (iii) (i) (iv) (ii)
36. Match the following :
List - I List -
II
(Decisions
regarding branding) (Explanation)
(a) Diversification (i)
Preservation of product
(b) Quality (ii) Production of
one or more products
(c) Variety (iii) Finding of
new products in same line
(d) Packing (iv) Various
product
Code :
(a) (b) (c) (d)
(A) (ii) (iv) (i) (iii)
(B) (iii) (ii) (iv) (i)
(C) (iii) (i) (iv) (ii)
(D) (iv) (iii) (ii) (i)
37. Statements :
(i) Overcapitalisation is
desirable
(ii) Undercapitalisation is
more desirable
(A) Both are Correct
(B) Both are incorrect
(C) (i) is correct (ii) is
incorrect
(D) (ii) is correct (i) is
incorrect
38. Statements :
(i) High morale leads to high
productivity
(ii) High morale need not
necessarily lead to high productivity
(A) Both are correct
(B) Both are incorrect
(C) (i) is correct (ii) is
incorrect
(D) (i) is incorrect (ii) is
correct
39. Statements :
(i) Maslow’s theory conveys
hygiene factors
(ii) Maslow’s theory conveys
satisfied need is no more a motivator
(A) (i) is correct (ii) is
incorrect
(B) (ii) is correct (i) is
incorrect
(C) Both are correct
(D) Both are incorrect
40. Statements :
(i) Agency theory relates to
the relationship between management and employees.
(ii) Agency theory relates to
middlemen.
(A) Both are correct
(B) Both are incorrect
(C) (i) is correct (ii) is
incorrect
(D) (ii) is correct (i) is
incorrect
41. Statements :
Assertion - (A)
: Demand for
a commodity refers to quantity of the commodity demanded at a certain price
during any particular period of time.
Reason - (R) : Contraction of demand is the
result of increase in the price of the good concerned.
(A) Both (A) and (R) are correct
(B) Both (A) and (R) are incorrect
(C) (A) is correct but (R) is incorrect
(D) (A) is incorrect but (R) is correct
42. A leader uses the following
methods :
(i) Uses criticism
(ii) Encourages growth
(iii) Sets objectives
(iv) Gives orders and
directions
Which of these methods are
used by a democratic leader ?
(A) (i) and (ii) (B) (iii) and (iv)
(C) (ii) and (iii) (D) (i), (ii) and (iv)
43. In the technique of MBO :
(i) Overall objectives are set
at the top of the organisational hierarchy
(ii) Individual objectives
coincide with objectives of the organisation
(iii) Performance should be
evaluated periodically
(iv) Objectives are decided at
the subordinate level
(A) (i) and (ii) (B) (i), (ii) and (iii)
(C) (i) and (iii) (D) (i), (ii), (iii) and
(iv)
44. Staffing includes :
(i) Training
(ii) Appraisal
(iii) Placement
(iv) Directing
(A) (i) and (iii) (B) (i), (ii) and (iii)
(C) (ii) and (iii) (D) (i), (ii), (iii) and (iv)
45. Working capital cycle involves
the following :
(i) Acquisition of Raw
material
(ii) Finished goods
(iii) Receivables
(iv) Cash
(v) Work in progress
Which of the sequence is correct ?
(A) (iv), (iii), (i), (v), (ii)
(B) (i), (ii), (iii),
(iv), (v)
(C) (i), (v), (ii), (iii),
(iv) (D) (iv), (i),
(ii), (iii), (v)
Read the
following passage and answer the questions from 46 to 50 :
Accounting is the process of
identifying, measuring and communicating economic information to permit informed
judgments and decisions by the users of the information. It primarily focuses on measurement,
analysis, interpretation and use of information. As an information system,
accounting links an information source, a channel of communication and set of
receivers. Accounting system should be
designed to classify
financial
information on a basis suitable for decision-making purposes and to process the tremendous quantities of
data efficiently and accurately.
Financial accounting is
concerned
with providing information to external users and it is oriented towards the preparation of final statements
which summarises the results of operations
for selected
periods of
time and show the financial position of business at particular date. Management accounting is
concerned with providing information to managers to carry out their responsibilities and
functions such as planning, execution, control and decision - making. The end product of the financial accounting
process is a set of reports called financial statement, such as, profit and
loss account, balance-sheet and statement of changes in financial
position. Profit & loss account
shows the results of operations for a period of time, balance-sheet shows financial
position on certain date and statement of changes in financial position shows
where the financial resources have come and where they have gone.
46. A list of assets, liabilities
and owner’s equity of a business enterprise as of a specific date is :
(A) Income Statement (B) Cash Flow Statement
(C) Balance Sheet (D) Profit and Loss Account
47. The balance-sheet is related
to the income statement in the same way that :
(A) A point in time is related
to a period of time
(B) A period of time is
related to a point in time
(C) A point in time is related
to another point in time
(D) A period of time is
related to another period of time
48. The properties own by a
business enterprise are called :
(A) Assets (B) Liabilities
(C) Capital (D) Owner’s Equity
49. Which of the following is an
important reason for studying accounting ?
(A) The information provided
by accounting is useful in making many economic decisions.
(B) Accounting plays an
important role in society
(C) The study of accounting
could lead to a challenging career.
(D) All of the above.
50. Statement of changes in
financial position shows :
(A) Sources and uses of funds (B) Assets and Liabilities
(C) Income and Expenses (D) Losses and
Gains.