KSET Commerce Solved Paper 2014 [Paper III]

KSET Solved Question Paper Commerce

[Time: 2 hour 30 Minutes,150 minutes; Maximum Marks: 200]

Note: This paper contains seventy five(75) multiple choice questions, each carrying Two (2) marks. Attempt All questions.

In this post you will get KSET Commerce Solved Paper 2020 [Paper III]with Proper Explanation. K-SET General Paper 1 Solutions will also be available very soon on our website.

KSET Exam is conducted every year by the Karnataka Exam Authority (). Question Papers of KSET Exam is tough as compared to UGC NET Exam question paper. Syllabus of KSET Exam and UGC NET exam is similar. You can refer KSET Commerce syllabus for 2025 here.

1. A financial asset that represents a claim to another financial asset is called

(A) Hedged asset.

(B) Sub-ordinated asset.

(D) Derivative asset.

Ans: (D) Derivative asset.

2. Which of the following discount rates should be used when computing the net advantage to leasing?

(A) Lessee’s after-tax discount rate.

(B) Lessee’s pre-tax discount rate.

(D) Lessor’s after-tax discount rate.

Ans: (A) Lessee’s after-tax discount rate.

3. International bonds issued in multiple countries but denominated in a single currency are called

(A) ADRs.

(B) Foreign bonds.

(D) Gilt bonds.

Ans: (C) Euro bonds.

4. A stock has produced annual returns of 11%,15%,– 6% and 4% over the past 4 years respectively. What is the 68% probability range of returns?

(A) – 2.8 to 14.8 %.

(B) – 12.4 to 24.4 %.

(D) – 3.2 to 15.2 %.

Ans: (D) – 3.2 to 15.2 %.

5. Portfolio diversification reduces which type of risk?

(A) Market risk.

(B) Asset specific risk.

(D) Systematic risk.

Ans: (B) Asset specific risk.

6. Advantages of investing in mutual funds for individual investors is/are:

(1) Diversification of risk.

(2) Professional knowledge of fund managers in managing funds.

(3) High returns.

(4) Steady returns.

(5) Assured returns.

Codes:

(A) (1), (2) and (3).

(B) (1), (2) and (4).

(D) (2), (4) and (5).

Ans: (B) (1), (2) and (4).

7. Which of the following is not regulated by SEBI?

(A) FII.

(B) FDI.

(D) Depositories.

Ans: (B) FDI.

8. The first computerised online stock exchange in India is

(A) NSE.

(B) BSE.

(D) NCDX.

Ans: (A) NSE.

9. A subtotal used in evaluating the performance of a responsibility centre manager as distinct from the performance of the centre is

(1) Contribution margin less controllable fixed costs.

(2) Contribution margin plus fixed costs deferred into inventory.

(3) Sales less committed costs.

Codes:

(A) (1)above only.

(B) (1) and (2) both.

(D) (2)above only.

Ans: (A) (1)above only.

10. Which of the following statements is correct?

(A) Marking to market is the term that applies to the daily resettlement feature found in all forward contracts.

(B) A future contract is exactly the same as a forward contract.

(D) The gain or losses on a futures contract are realised on daily basis.

Ans: (D) The gain or losses on a futures contract are realised on daily basis.

11. Venture capital funds are usually deployed in

(1) Low risk companies.

(2) Listed IT companies.

(3) Unlisted IT companies.

(4) Start-up ventures by new generation entrepreneurs.

Codes:

(A) (1), (2).

(B) (3), (4).

(D) (2)only.

Ans: (B) (3), (4).

12. Which one of the following statements is true?

(A) The value of a merger to the acquiring firm increases as the merger premium increases.

(B) Stock acquisitions tend to be less complicated than cash acquisitions.

(C) If the managers of the acquiring firm do not wish to lose any of their managerial control, they should acquire other firms with cash, rather than stock.

(D) An acquisition completed by exchanging shares of stock is generally a taxable transaction.

Ans: (C) If the managers of the acquiring firm do not wish to lose any of their managerial control, they should acquire other firms with cash, rather than stock.

13. Match List – I with List – II:

List – I

List – II

(a) Commodity asset.

(b) Stock asset.

(d) Mutual funds.

(1) NAV.

(2) Debtors and Bills receivables.

(3) Financial derivative.

(4) Commodity derivative.

Codes:

(A) (a)-(1), (b)-(3), (c)-(2), (d)-(4).

(B) (a)-(3), (b)-(4), (c)-(2), (d)-(1).

(D) (a)-(4), (b)-(2), (c)-(3), (d)-(1).

Ans: (C) (a)-(4), (b)-(3), (c)-(2), (d)-(1).

14. Match List – I with List – II:

List – I

List – II

(a) Market risk.

(b) Interest risk.

(d) Liquidity risk.

(1) Marketability of security.

(2) Price volatility.

(3) Bank rate.

(4) Recession.

Codes:

(A) (a)-(2), (b)-(3), (c)-(4), (d)-(1).

(B) (a)-(4), (b)-(3), (c)-(1), (d)-(2).

(D) (a)-(2), (b)-(3), (c)-(1), (d)-(4).

Ans: (A) (a)-(2), (b)-(3), (c)-(4), (d)-(1).

15. Match List – I with List – II:

List – I

List – II

(a) Risk-return trade-off.

(b) Risk aversion is measured by.

(d) HRA.

(1) Risk free rate of return.

(2) Risk premium.

(3) Minimization of risk.

(4) Interest rate parity theory.

(5) Human information processing.

Codes:

(A) (a)-(1), (b)-(3), (c)-(5), (d)-(4).

(B) (a)-(2), (b)-(1), (c)-(5), (d)-(3).

(D) (a)-(3), (b)-(1), (c)-(4), (d)-(5).

Ans: (D) (a)-(3), (b)-(1), (c)-(4), (d)-(5).

16. A brand’s position and its continuing recognition in the market is called

(A) Market acceptance.

(B) Market coverage.

(D) Market strategy.

Ans: (C) Market awareness.

17. Marketing starts and ends with

(A) Planning and profit.

(B) Sales promotion and profit.

(D) Selling.

Ans: (C) Consumer.

18. Groups of ordinary consumer’s setup and organised to offer views on products and services they have purchased are called

(A) Consumer groups.

(B) Consumer associations.

(D) Advisors.

Ans: (C) Consumer panels.

19. Match the following:

List – A

List – B

(a) Market profile.

(b) Market potential.

(d) Merchandising.

(1) A wide range of marketing activities conducted at the point of sale.

(2) An estimated number of customers a company can reach with a marketing campaign.

(3) An estimated share in a particular market.

(4) Characteristics of market.

Codes:

(A) (a)-(2), (b)-(3), (c)-(1), (d)-(4).

(B) (a)-(4), (b)-(3), (c)-(2), (d)-(1).

(D) (a)-(3), (b)-(4), (c)-(2), (d)-(1).

Ans: (B) (a)-(4), (b)-(3), (c)-(2), (d)-(1).

20. The extent to which a product or service has succeeded in gaining its share of sales in a market is called

(A) Market niche.

(B) Market positioning.

(D) Market penetration.

Ans: (D) Market penetration.

21. The display cabins in super markets areoften called

(A) Window dressing.

(B) Gondolas.

(D) Baskets.

Ans: (B) Gondolas.

22. Statements:

(1) Packing two products together and selling at a price less than the price of two individual items is called banded pack.

(2) Competitive marketing and related activities based on any factor except price is called priceless competition.

Codes:

(A) Both are correct.

(B) Both are incorrect.

(D) (2) is correct, (1) is incorrect.

Ans: (C) (1) is correct, (2) is incorrect.

23. The task environment of marketing includes

(a) Employees.

(b) Suppliers.

(d) Target customers.

Codes:

(A) (a), (b) and (c).

(B) (b), (c) and (d).

(D) (d), (a) and (b).

Ans: (B) (b), (c) and (d).

24. Match the following:

List – A

List – B

(a) Routine products.

(b) Leverage products.

(d) Bottleneck products.

(1) Products having low value, low cost and moderate risk.

(2) Products having high value, high cost and high risk.

(3) Products having high cost, high value and little risk.

(4) Products having low value, low cost and little risk.

Codes:

(A) (a)-(1), (b)-(2), (c)-(3), (d)-(4).

(B) (a)-(2), (b)-(3), (c)-(4), (d)-(1).

(D) (a)-(4), (b)-(3), (c)-(2), (d)-(1).

Ans: (D) (a)-(4), (b)-(3), (c)-(2), (d)-(1).

25. Statements:

(1) Most of the big companies out source their marketing research activities.

(2) Unprofitable customers who defect to a competitor should be encouraged to do so.

Codes:

(A) Both are correct.

(B) Both are incorrect.

(D) (2) is correct, (1) is incorrect.

Ans: (D) (2) is correct, (1) is incorrect.

26. Demographic segmentation includes

(a) Age and life cycle.

(b) Income and social class.

(d) Geography and income.

Codes:

(A) (a), (b) and (c) only.

(B) (a) and (b) only.

(D) (b), (c) and (d) only.

Ans: (A) (a), (b) and (c) only.

27. Statements:

(1) Product line refers to a group of products within a product class that are closely related.

(2) The width of a product mix refers to how many different product lines the company carries.

Codes:

(A) Both are correct.

(B) Both are incorrect.

(D) (2) is correct, (1) is incorrect.

Ans: (A) Both are correct.

28. Match the following:

List – A

List – B

(a) Value pricing.

(b) Going rate pricing.

(d) Target return pricing.

(1) Cost plus profit pricing.

(2) Pricing for a fixed rate of profit.

(3) Pricing dependent on competitors’ pricing.

(4) Charging low price for a high quality offering.

Codes:

(A) (a)-(3), (b)-(2), (c)-(1), (d)-(4).

(B) (a)-(4), (b)-(3), (c)-(2), (d)-(1).

(D) (a)-(1), (b)-(3), (c)-(2), (d)-(4).

Ans: (C) (a)-(4), (b)-(3), (c)-(1), (d)-(2).

29. The buying behaviour is influenced to a great extent by

(a) Culture.

(b) Peer group.

(d) Income.

Codes:

(A) (a) and (b).

(B) (a), (b) and (d).

(D) (a), (b) and (c).

Ans: (B) (a), (b) and (d).

30. The task of any business is to deliver ________ at a profit.

(A) Customer needs.

(B) Products.

(D) Products and services.

Ans: (C) Customer value.

31. Human resource plans of organisations should be flexible as far as possible

(A) To accommodate changes in senior management teams.

(B) To adapt to changing skills and qualifications.

(D) To ensure diverse work force at all levels.

Ans: (C) To accommodate the rapidly changing environments in which most organisations operate.

32. Critical factor which ensures success of an organisation is

(A) Recruiting only talented people.

(B) Provision of incentives liberally to motivate employees.

(D) Creating conducive environment to ensure high performance from everyone.

Ans: (D) Creating conducive environment to ensure high performance from everyone.

33. Statements:

(1) Balanced score card is a measurement framework that helps managers translate strategic goals into operational objectives.

(2) A group of individual jobs of an organisation is called job family.

Codes:

(A) (1) is correct (2) is incorrect.

(B) (2) is correct (1) is incorrect.

(D) Both are incorrect.

Ans: (A) (1) is correct (2) is incorrect.

34. Match the following:

List – A

List – B

(a) Structured interview.

(b) Situational interview.

(d) Non-directive interview.

(1) Getting responses without influencing applicants’ remarks.

(2) Seeking responses to a actual work incident happened in past.

(3) Seeking response to a given hypothetical incident.

(4) Seeking responses for predetermined questions.

Codes:

(A) (a)-(4), (b)-(3), (c)-(1), (d)-(2).

(B) (a)-(4), (b)-(3), (c)-(2), (d)-(1).

(D) (a)-(3), (b)-(2), (c)-(1), (d)-(4).

Ans: (B) (a)-(4), (b)-(3), (c)-(2), (d)-(1).

35. Skill deficit exists in the labour market

(a) when the skills available do not match the skill required.

(b) when the supply of skills is keeping pace with the jobs available.

(d) when the supply of skills fall short of jobs created.

Codes:

(A) (a), (b) and (c) only.

(B) (a) and (b) only.

(D) (b) and (c) only.

Ans: (C) (a) and (d) only.

36. The most common activities performed by human resources department which are often outsourced are

(A) Recruitment and selection.

(B) Human resource planning.

(D) Occupational health.

Ans: (D) Occupational health.

37. Portfolio working is working in which

(A) An individual work at home for a single employer.

(B) A person demonstrates his work in a portfolio.

(D) A person chooses multiple careers.

Ans: (C) A person is not attached to a single employer and contract of employment.

38. Statements:

(1) An employee leaving the organisation as a result of violation of rules is an example of forced retirement.

(2) Management giving an option for an employee to retire due to his illness or disability is an example of voluntary retirement.

Codes:

(A) (1) is correct, (2) is incorrect.

(B) (2) is correct, (1) is incorrect.

(D) Both are incorrect.

Ans: (A) (1) is correct, (2) is incorrect.

39. Match the following:

List – A

List – B

(a) Graphic rating scale method.

(b) Ranking method.

(d) Check list method.

(1) Ranking employees from best to worst.

(2) Measuring performance against absolute standard.

(3) Measuring performance against list of statement.

(4) Measuring performance with other employees in the group.

Codes:

(A) (a)-(2), (b)-(1), (c)-(4), (d)-(3).

(B) (a)-(1), (b)-(3), (c)-(2), (d)-(4).

(D) (a)-(3), (b)-(4), (c)-(1), (d)-(2).

Ans: (A) (a)-(2), (b)-(1), (c)-(4), (d)-(3).

40. Factors that may create negative impression for candidates is/are

(a) Clear and informative websites.

(b) Long and complicated application blanks.

(d) Reputed people on the board of directors.

Codes:

(A) (a), (b) and (c).

(B) (a) and (d).

(D) (b) and (d).

Ans: (C) (b) and (c).

41. Human resource planning is not simply about meeting the demand for labour but also involves

(A) Redeploying staff.

(B) Directing line managers.

(D) Costs associated with employing any given number of people.

Ans: (D) Costs associated with employing any given number of people.

42. Employers are interested in employee engagement because

(A) To make employees work harder for less payment.

(B) To make substantial profit.

(D) Engaged employees are more motivated and prepared to give their best to the firm.

Ans: (D) Engaged employees are more motivated and prepared to give their best to the firm.

43. The expansion of HCA is

(A) Human Capital Allowance.

(B) Human Capital Advantage.

(D) Human Capital Assessment.

Ans: (B) Human Capital Advantage.

44. Tight labour market refers to a situation wherein

(a) There is high labour turnover.

(b) Firms can hire the employees without any difficulty.

(d) Recruitment has to be more creative.

Codes:

(A) (a), (b) and (c).

(B) (a), (c) and (d).

(D) (a), (b) and (d).

Ans: (B) (a), (c) and (d).

45. Statements:

(1) Job specification is a statement of the needed knowledge skills and abilities of the person who is to perform the job.

(2) Too great reliance on internal recruitment can result in high labour turnover.

Codes:

(A) Both are correct.

(B) (2) is correct, (1) is incorrect.

(D) Both are incorrect.

Ans: (C) (1) is correct, (2) is incorrect.

46. The purchasing power parity theory was put forward by

(A) Dr. Paul Einzig.

(B) Gustav Cassel.

(D) Giddy.

Ans: (B) Gustav Cassel.

47. According to Article I of the Charter of the SAARC, following is not the objective of the association

(A) To promote the welfare of the people of South Asia and to improve their quality of life.

(B) To strengthen co-operation with other developing countries.

(D) Inclusion of all types of products –raw, semi-processed and processed.

Ans: (D) Inclusion of all types of products –raw, semi-processed and processed.

48. Arrange the following stages of globalization in correct sequence.

(1) Multinational company.

(2) Domestic company.

(3) Transnational company.

(4) International company.

Codes:

(A) (2), (1), (3) and (4).

(B) (1), (2), (3) and (4).

(D) (4), (2), (3) and (1).

Ans: (C) (2), (4), (1) and (3).

49. Assertion (1): MNCs help to increase the investment level and thereby the income and employment in host country.

Reason (2): MNCs work to equalise the cost of factors of production around the world.

Codes:

(A) Both are correct.

(B) Both are incorrect.

(D) (1) is incorrect, (2) is correct.

Ans: (A) Both are correct.

50. Match the following:

List – I

(Organisation)

List – II

(Place where situated)

(a) UNCTAD.

(b) UN Department of Economics and Social Affairs.

(d) UN International Trade Centre.

(1) New York.

(2) Switzerland.

(3) Geneva.

(4) Washington.

Codes:

(A) (a)-(2), (b)-(4), (c)-(1), (d)-(3).

(B) (a)-(3), (b)-(1), (c)-(4), (d)-(2).

(D) (a)-(1), (b)-(3), (c)-(2), (d)-(4).

Ans: (B) (a)-(3), (b)-(1), (c)-(4), (d)-(2).

51. Which of the following basic methods of payments is the least secure in terms of security to the exporter?

(A) Letter of credit.

(B) Open account.

(D) Cash in advance.

Ans: (B) Open account.

52. Holding ________ gives the bearer the option to acquire foreign exchange from the monetary authorities of another member of the IMF.

(A) Dollar.

(B) Gold.

(D) SDR.

Ans: (D) SDR.

53. Assertion (1): SEZ companies can import duty-free all their requirements of imports.

Reason (2): Supplies to SEZ units are considered as deemed exports and suppliers are eligible for advance license for import of immediate inputs.

Codes:

(A) (1) and (2) are true.

(B) (1) and (2) are false.

(D) (1) is false and (2) is true.

Ans: (A) (1) and (2) are true.

54. Arrange the following strategic decisions of the international business in sequence

(1) Entry and operating decision.

(2) Market selection decision.

(3) Marketing mix decision.

(4) Doing overseas business decision.

Codes:

(A) (4), (2), (1) and (3).

(B) (1), (3), (2) and (4).

(D) (2), (1), (3) and (4).

Ans: (A) (4), (2), (1) and (3).

55. Match the following:

List – I

(Institutions)

List – II

(Year of establishment)

(a) EXIM Bank.

(b) IMF.

(d) IFC.

(1) 1982.

(2) 1995.

(3) 1960.

(4) 1956.

Codes:

(A) (a)-(2), (b)-(4), (c)-(3), (d)-(1).

(B) (a)-(3), (b)-(1), (c)-(4), (d)-(2).

(D) (a)-(4), (b)-(3), (c)-(1), (d)-(2).

Ans: (C) (a)-(1), (b)-(2), (c)-(3), (d)-(4).

56. The three nations which filed a complaint to the WTO Dispute Settlement Body against the ban on Shrimp imports,imposed by USA are

(A) India, Thailand and Pakistan.

(B) Malaysia, Thailand and Pakistan.

(D) India, Nepal and Bhutan.

Ans: (B) Malaysia, Thailand and Pakistan.

57. Which of the following factors has not contributed to the cross border portfolio investment?

(A) Liberalisation of international portfolio investments, particularly by emerging banks.

(B) Attractive returns on investments in the emerging markets.

(D) Many developing countries do not have the financial and knowledge resources to effectively participate.

Ans: (D) Many developing countries do not have the financial and knowledge resources to effectively participate.

58. Arrange the following institutions in order of their inception

(1) SAFTA.

(2) WTO.

(3) ADB.

(4) IBRD.

Codes:

(A) (2), (1), (4) and (3).

(B) (4), (3), (2) and (1).

(D) (3), (4), (1) and (2).

Ans: (B) (4), (3), (2) and (1).

59. Assertion (1): Removal of quantitative restrictions does not mean duty-free imports.

Reason (2): Removal of quantitative restrictions is an item that can be imported without import licence or quotas.

Codes:

(A) (1) and (2) are false.

(B) (1) and (2) are true.

(D) (1) is true and (2) is false.

Ans: (B) (1) and (2) are true.

60. Match the following:

List – I

(Country)

List – II

(Currency)

(a) Costa Rica.

(b) Cyprus.

(d) Spain.

(1) Pound.

(2) Colon.

(3) Peseta.

(4) Birr.

Codes:

(A) (a)-(3), (b)-(1), (c)-(2), (d)-(4).

(B) (a)-(2), (b)-(1), (c)-(4), (d)-(3).

(D) (a)-(2), (b)-(1), (c)-(4), (d)-(3).

Ans: (B) (a)-(2), (b)-(1), (c)-(4), (d)-(3). (D) (a)-(2), (b)-(1), (c)-(4), (d)-(3).

61. All assessees are required to follow uniform previous year for all sources of income w.e.f. the assessment year

(A) 1989-90.

(B) 1999-2000.

(D) 2013-2014.

Ans: (A) 1989-90.

62. Block of assets is defined under Section

(A) 2 (11).

(B) 43 (1).

(D) 32.

Ans: (A) 2 (11).

63. Assertion (A): Mr. A transfers his house property to his minor child and therefore,he is not liable to pay income-tax on the income from the house property.

Reason (R): The child, being an owner,is liable to pay income-tax on house property income.

Codes:

(A) Both (A) and (R) are correct.

(B) (A) is correct and (R) is incorrect.

(D) Both (A) and (B) are incorrect.

Ans: (D) Both (A) and (B) are incorrect.

64. Match the following:

List – A

List – B

(a) Assessment year.

(b) Previous year.

(d) Person.

(1) Section 2(7).

(2) Section 2(31).

(3) Section 2(9).

(4) Section 3.

Codes:

(A) (a)-(1), (b)-(3), (c)-(2), (d)-(4).

(B) (a)-(2), (b)-(4), (c)-(1), (d)-(3).

(D) (a)-(2), (b)-(3), (c)-(4), (d)-(1).

Ans: (C) (a)-(3), (b)-(4), (c)-(1), (d)-(2).

65. Income from business controlled from outside India is not taxable in India when an assessee is

(1) Resident and ordinarily resident.

(2) Resident but not ordinarily resident.

(3) Non-resident in India.

Codes:

(A) (1) and (2).

(B) (2) and (3).

(D) (1), (2) and (3).

Ans: (C) (1) and (3).

66. Intangible assets purchased after March 31, 1998, are grouped, for claiming depreciation at 25%, under the block of assets numbered

(A) Block 1.

(B) Block 5.

(D) Block 13.

Ans: (D) Block 13.

67. Given the income from salary Rs. 1,00,000, business profits before depreciation Rs. 16,000 current depreciation Rs. 1,34,000 and the income from other sources Rs. 10,000,the taxable income for the A. Y. 2014-15 will be

(A) Rs. 0.

(B) Rs. 10,000.

(D) Rs. 1,10,000.

Ans: (C) Rs. 1,00,000.

68. Assertion (A): Interest paid by one unit of an assessee to another unit is not allowed for deduction.

Reasoning (R): Interest paid or payable on borrowed capital used in business is deductible.

Codes:

(A) Both (A) and (R) are correct.

(B) (A) is correct and (R) is incorrect.

(D) Both (A) and (R) are incorrect.

Ans: (A) Both (A) and (R) are correct.

69. Match the following:

List – A

List – B

(a) Depreciation.

(b) Interest on borrowed capital.

(d) Discount on zero-coupon bonds.

(1) Sec. 36(1) (3a).

(2) Sec. 32.

(3) Sec. 36(1) (3).

(4) Sec. 36(1) (4).

Codes:

(A) (a)-(1), (b)-(2), (c)-(3), (d)-(4).

(B) (a)-(2), (b)-(3), (c)-(4), (d)-(1).

(D) (a)-(3), (b)-(2), (c)-(4), (d)-(1).

Ans: (B) (a)-(2), (b)-(3), (c)-(4), (d)-(1).

70. Distribution of capital assets by a company at the time of liquidation is not treated as transfer provided:

(1) assets are distributed in kind

(2) assets are distributed to the shareholders

(3) assets are distributed on liquidation

Codes:

(A) (1) only.

(B) (1) and (2).

(D) (1), (2) and (3).

Ans: (D) (1), (2) and (3).

71. The maximum deduction allowed in respect of donation to Prime Minister’s Drought Relief Fund and Prime Minister’s National Relief Fund (as a % of net qualifying amount) is

(A) 100% and 100% respectively.

(B) 50% and 50% respectively.

(D) 100% and 50% respectively.

Ans: (C) 50% and 100% respectively.

72. The book profit of a partnership (minus) Rs. 1,00,000. The maximum amount deductible in respect of remuneration to partners under Section 40(b) w.e.f. the A. Y. 2010-11 is

(A) Rs. 1,00,000.

(B) Rs. Nil.

(D) Actual salary paid in excess of Rs. 1,50,000.

Ans: (C) Rs. 1,50,000.

73. Match the following:

List – A

List – B

(a) Deduction u/s 80 D.

(b) Deduction u/s 80 E.

(d) Deduction u/s 80 GGA.

(1) All assessees.

(2) Co-operative societies.

(3) Individuals and HUFs.

(4) Individuals only.

Codes:

(A) (a)-(3), (b)-(4), (c)-(2), (d)-(1).

(B) (a)-(4), (b)-(3), (c)-(1), (d)-(2).

(D) (a)-(1), (b)-(4), (c)-(3), (d)-(2).

Ans: (A) (a)-(3), (b)-(4), (c)-(2), (d)-(1).

74. Assertion (A): Mr. X was born in India on 1-1-1954 and therefore, he is a resident senior citizen.

Reasoning (R): Mr. X, referred to above,earned total income of Rs. 3,00,000 and therefore, is not liable to pay income-tax.

Codes:

(A) Both (A) and (R) are correct.

(B) (A) is correct and (R) is incorrect.

(D) Both (A) and (R) are incorrect.

Ans: (A) Both (A) and (R) are correct.

75. Which of the following loss (or losses) cannot be carried forward if the return of loss is not submitted in time?

(1) Business loss (speculation or otherwise).

(2) Capital loss.

(3) Loss from the activity of owning and maintaining race horses.

Codes:

(A) (1) and (2).

(B) (1) and (3).

(D) (1), (2) and (3).

Ans: (D) (1), (2) and (3).

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KSET Commerce Solved Paper 2014 [Paper III]