KSET Commerce Solved Paper 2016 [Paper II]
KSET Solved Question Paper Commerce
[Time: 1 hour , 15 Minutes; Maximum Marks: 100]
Note: This paper contains fifty(50) multiple choice questions, each carrying Two (2) marks. Attempt All questions.
In this post you will get KSET Commerce Solved Paper 2016 [Paper II]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 (
1. A business environment which is increasingly complex and turbulent displays
a) An orderly competition.
b) A stable growth in the business.
c) Product obsolescence risk is less.
d) Increased speed of innovation.
Ans: d) Increased speed of innovation.
2. Removal of poverty was strongly emphasized during
a) Fourth Five Year Plan.
b) Fifth Five Year Plan.
c) Sixth Five Year Plan.
d) First Five Year Plan.
Ans: b) Fifth Five Year Plan.
3. Assertion (A): Scanning is the process of analysing the environment for identifying the factors which have an impact on the business.
Reasoning (R): Because analysis of external environment enables a business to identify its strengths and weakness.
Codes:
a) Both (A) and (R) are correct.
b) (A) is correct and (R) is incorrect.
c) Both (A) and (R) are incorrect.
d) (A) is incorrect and (R) is correct.
Ans: b) (A) is correct and (R) is incorrect.
4. Match the following:
|
List – A |
List – B |
|
(a) MRTP Act. (b) FERA. (c) FEMA. (d) Competition Act. |
(1) 2002. (2) 1999. (3) 1971. (4) 1969. |
Codes:
a) (a)-(4), (b)-(3), (c)-(2), (d)-(1).
b) (a)-(1), (b)-(2), (c)-(3), (d)-(4).
c) (a)-(2), (b)-(3), (c)-(4), (d)-(1).
d) (a)-(3), (b)-(1), (c)-(2), (d)-(4).
Ans: a) (a)-(4), (b)-(3), (c)-(2), (d)-(1).
5. Withdrawal of state from an industry or sector partially or fully is called
a) Liberalisation.
b) Globalisation.
c) Privatisation.
d) Modernisation.
Ans: c) Privatisation.
6. Share Capital Suspense Account is opened when
a) Some shares are forfeited.
b) Dividend is declared but not claimed.
c) Application money is received but Balance Sheet is prepared before allotment of shares.
d) Balance Sheet does not tally.
Ans: c) Application money is received but Balance Sheet is prepared before allotment of shares.
7. Which of the following statements are true?
a) In marginal costing, fixed costs are treated as product costs.
b) Marginal costing is not an independent system of costing.
c) Marginal costing is not a technique of cost analysis.
d) In marginal costing, all costs are divided into fixed and variable.
Ans: d) In marginal costing, all costs are divided into fixed and variable.
8. Statement A: Usefulness, objectivity and feasibility are the three basic norms generally found in accounting principles.
Statement B: Losses from the sale of capital assets need not be deducted from revenue to ascertain the net income.
Codes:
a) Both the statements are true.
b) Both the statements are wrong.
c) Statement (A) is correct and (B) is wrong.
d) Statement (A) is wrong and (B) is correct.
Ans: c) Statement (A) is correct and (B) is wrong.
9. Match the following:
|
List – I |
List – II |
|
(a) Statement of Financial Accounting Standards. (b) Accounting standards. (c) International Financial Reporting Standards. (d) Extensible Business Reporting Language. |
(1) XBRL. (2) IASB. (3) FASB. (4) ICAI. |
Codes:
a) (a)-(4), (b)-(3), (c)-(2), (d)-(1).
b) (a)-(1), (b)-(2), (c)-(3), (d)-(4).
c) (a)-(3), (b)-(4), (c)-(2), (d)-(1).
d) (a)-(4), (b)-(2), (c)-(1), (d)-(3).
Ans: c) (a)-(3), (b)-(4), (c)-(2), (d)-(1).
10. Statement (A): Under accounting standard, unexpired insurance premium usually considered to be non-current asset.
Statement (B): Certain cost of doing business capitalised when incurred and then depreciated or amortised over subsequent accounting periods to match operating costs with revenues earned.
Codes:
a) Statement (A) is wrong and (B) is correct.
b) Statement (A) is correct and (B) is wrong.
c) Both the statements are correct.
d) Both the statements are wrong.
Ans: a) Statement (A) is wrong and (B) is correct.
11. To determine whether two goods are substitutes or complements an economist would estimate the
a) Price elasticity of demand.
b) Income elasticity of demand.
c) Cross elasticity of demand.
d) Point elasticity of demand.
Ans: c) Cross elasticity of demand.
12. Assertion (A): Giffin paradox rarely occurs in the real world.
Reasoning (R): Inferior goods are narrowly defined for which suitable substitutes are available.
Codes:
a) Both (A) and (R) are incorrect.
b) (A) is correct and (R) is incorrect.
c) Both (A) and (R) are correct.
d) (A) is incorrect and (R) is correct.
Ans: b) (A) is correct and (R) is incorrect.
13. Match the following:
|
List – I |
List – II |
|
(a) Perfect competition. (b) Pure monopoly. (c) Monopolistic competition. (d) Oligopoly. |
(1) No substitutes. (2) Homogenous. (3) Price rigidity. (4) Product differentiation. |
Codes:
a) (a)-(2), (b)-(1), (c)-(4), (d)-(3).
b) (a)-(1), (b)-(2), (c)-(3), (d)-(4).
c) (a)-(2), (b)-(3), (c)-(4), (d)-(1).
d) (a)-(3), (b)-(2), (c)-(4), (d)-(1).
Ans: a) (a)-(2), (b)-(1), (c)-(4), (d)-(3).
15. Which of the following is not an assumption of Break-even-analysis?
a) Elements of cost cannot be divided into different groups.
b) Fixed cost remains constant from zero production to fully capacity.
c) Behaviour of different costs is linear.
d) Selling price remains constant.
Ans: a) Elements of cost cannot be divided into different groups.
16. For the given set of data: 4, 4, 5, 6, 6 which of the following is true?
a) Mean = Mode.
b) Median = Mode.
c) Mean = Median.
d) Mean < Median.
Ans: c) Mean = Median.
17. Match the following:
|
List – I |
List – II |
|
(a) Type I error. (b) Large sample. (c) Multiple regressions. (d) Chi-square test. |
(1) Small standard error. (2) Non-parametric. (3) False positive. (4) One dependent variable. |
Codes:
a) (a)-(4), (b)-(1), (c)-(2), (d)-(3).
b) (a)-(3), (b)-(1), (c)-(4), (d)-(2).
c) (a)-(2), (b)-(3), (c)-(1), (d)-(4).
d) (a)-(3), (b)-(4), (c)-(1), (d)-(2).
Ans: b) (a)-(3), (b)-(1), (c)-(4), (d)-(2).
18. Statement (A): A sample form population does not have to share the same characteristics as the population.
Statement (B): The difference between a sample statistic and its corresponding population parameter is called sampling error.
Codes:
a) Statement (A) is correct and (B) is incorrect.
b) Statement (A) is incorrect and (B) is correct.
c) Both the statements are correct.
d) Both the statements are incorrect.
Ans: b) Statement (A) is incorrect and (B) is correct.
19. The classification method in which the upper limit of interval is the same as of lower limit class interval is called
a) Mid-point method.
b) Exclusive method.
c) Inclusive method.
d) Ratio method.
Ans: b) Exclusive method.
20. In a normal distribution, the increased spread and decreased height represents
a) Larger value of standard deviation.
b) Smaller value of variance.
c) Larger value of variance.
d) Smaller value of standard deviation.
Ans: a) Larger value of standard deviation.
21. Which one of the following statements is false?
a) Leadership is a part of management, but not all of it.
b) Leadership is the process of getting things done through and with the people.
c) People become leaders by birth.
d) Leadership is an interpersonal process exercised by the leader on the following in a given situation.
Ans: c) People become leaders by birth.
22. Identify which one of the following factors does not come under job context factors of Herzberg’s two factor theory of motivation?
a) Company policy.
b) Personal achievement.
c) Relationships with co-workers.
d) Working conditions.
Ans: b) Personal achievement.
23. Match the items of List – I with items of List – II:
|
List – I |
List – II |
|
(a) Max Weber. (b) Douglas McGregor. (c) Rensis Likert. (d) Blake and Mouton. |
(1) 4-systems Management. (2) Managerial Grid model. (3) Ideal Bureaucracy. (4) Theory X and Theory Y. |
Codes:
a) (a)-(3), (b)-(4), (c)-(1), (d)-(2).
b) (a)-(2), (b)-(1), (c)-(3), (d)-(4).
c) (a)-(4), (b)-(3), (c)-(2), (d)-(1).
d) (a)-(1), (b)-(2), (c)-(4), (d)-(3).
Ans: a) (a)-(3), (b)-(4), (c)-(1), (d)-(2).
24. Assertion (A): Authority is distributed at organisations in line, staff and functional forms.
Reasoning (R): functional authority is a kind of staff authority that in certain cases is combined with line authority.
Codes:
a) (A) is correct, but (R) is incorrect.
b) (A) is incorrect, but (R) is correct.
c) Both (A) and (R) are correct.
d) Both (A) and (R) are incorrect.
Ans: c) Both (A) and (R) are correct.
25.Arrange the steps involved in the process of communication in the sequential order
a) Sender – decoding – receiver – encoding – feedback.
b) Sender – decoding – receiver – feedback – encoding.
c) Sender – encoding – receiver – feedback – decoding.
d) Sender – encoding – receiver – decoding – feedback.
Ans: d) Sender – encoding – receiver – decoding – feedback.
26. Which of the following reflects the marketing concept?
a) “We are in the business of making and selling superior products.”
b) “When it is profits versus customers’ needs profits will always win out.”
c) “You won’t find a better deal.”
d) “We don’t have marketing department, we have a customer department.”
Ans: d) “We don’t have marketing department, we have a customer department.”
27. Match the following:
|
List – I |
List – II |
|
(a) Geographic. (b) Demographic. (c) Psychographic. (d) Behavioural. |
(1) Education. (2) Loyalty status. (3) Rural and semi urban. (4) Life style. |
Codes:
a) (a)-(4), (b)-(2), (c)-(3), (d)-(1).
b) (a)-(3), (b)-(1), (c)-(4), (d)-(2).
c) (a)-(3), (b)-(4), (c)-(2), (d)-(1).
d) (a)-(2), (b)-(3), (c)-(1), (d)-(4).
Ans: b) (a)-(3), (b)-(1), (c)-(4), (d)-(2).
28. An increasing a large number of firms are changing their organisation focus from
a) Brand management to customer relationship management.
b) Product management to functional management.
c) Product management to territory management.
d) Territory management to functional management.
Ans: a) Brand management to customer relationship management.
29. Assertion (A): Companies unveiling a new technology favour setting high price.
Reason (R): They do so to stall the entry of competitors into the market.
Codes:
a) Both (A) and (R) are incorrect.
b) Both (A) and (R) are correct.
c) (A) is correct and (R) is incorrect.
d) (A) is incorrect and (R) is correct.
Ans: c) (A) is correct and (R) is incorrect.
30. Sales promotion to customers is
a) An incentive to buy.
b) A reason to buy.
c) A reason to reject the good or service.
d) A reason to postpone the purchase.
Ans: a) An incentive to buy.
31. Long-term objective of financial management is to
a) Maximise return on investment.
b) Maximise market share.
c) Maximise the value of firm’s common stock.
d) Maximise earnings per share.
Ans: c) Maximise the value of firm’s common stock.
32. Match the following:
|
(a) Treasury bills. (b) Beta. (c) Capital budgeting. (d) Working capital. |
(1) Operating cycle. (2) Time value of money. (3) Risk free rate. (4) Systematic risk. |
Codes:
a) (a)-(4), (b)-(3), (c)-(1), (d)-(2).
b) (a)-(4), (b)-(1), (c)-(2), (d)-(3).
c) (a)-(3), (b)-(4), (c)-(2), (d)-(1).
d) (a)-(3), (b)-(1), (c)-(2), (d)-(4).
Ans: c) (a)-(3), (b)-(4), (c)-(2), (d)-(1).
33. Statement A: A critical assumption of the net operating income approach to valuation is that debt and equity levels remain unchanged.
Statement B: A firm’s degree of operating leverage depends primarily upon its level of operating costs.
Codes:
a) Both statements are correct.
b) Both statements are wrong.
c) Statement (A) is correct and (B) is wrong.
d) Statement (A) is wrong and (B) is correct.
Ans: b) Both statements are wrong.
34. M.I.C.R stands for
a) Magnetic Ink Character Reader.
b) Magnetic Ink Code Reader.
c) Micro Ink Code Reader.
d) Micro Ink Character Reader.
Ans: a) Magnetic Ink Character Reader.
35. Which of the following is important while taking up a project?
a) Research costs.
b) Investment in fixed and working capital.
c) Continuation value.
d) Historical costs.
Ans: b) Investment in fixed and working capital.
36. Span of control concept was given by
a) McGregor.
b) Elton Mayo.
c) Peter F. Drucker.
d) Graicuna.
Ans: d) Graicuna.
37. Adding of more jobs to the existing job is termed as
a) Job rotation.
b) Job enlargement.
c) Job enrichment.
d) Job evaluation.
Ans: b) Job enlargement.
38. Match the following Acts in List – I with the years they are enacted in List – II:
|
List – I |
List – II |
|
(a) Payment of Bonus Act. (b) Workmen Compensation Act. (c) Minimum Wages Act. (d) Payment of Gratuity Act. |
(1) 1923. (2) 1972. (3) 1948. (4) 1965. |
Codes:
a) (a)-(4), (b)-(1), (c)-(3), (d)-(2).
b) (a)-(2), (b)-(3), (c)-(1), (d)-(4).
c) (a)-(1), (b)-(2), (c)-(4), (d)-(3).
d) (a)-(3), (b)-(4), (c)-(2), (d)-(1).
Ans: a) (a)-(4), (b)-(1), (c)-(3), (d)-(2).
39. Assertion (A): H.R. managers perform both line and staff functions.
Reasoning (R): H.R. managers advise the line managers in the decision-making process of an organisation.
Codes:
a) (A) is incorrect, but (R) is correct.
b) (A) is correct, but (R) is incorrect.
c) Both (A) and (R) are correct.
d) Both (A) and (R) are incorrect.
Ans: a) (A) is incorrect, but (R) is correct.
40. Which one of the following does not come under off-the-job training method?
a) Programmed instruction.
b) Lecture method.
c) Grid training.
d) Internship training.
Ans: d) Internship training.
41. ________ Governs the transactions through cheques.
a) RBI Act, 1934.
b) Negotiable Instrument Act, 1881.
c) Banking Regulation Act, 1949.
d) Indian Contract Act, 1872.
Ans: b) Negotiable Instrument Act, 1881.
42. Match the following:
|
List – I |
List – II |
|
(a) RBI. (b) FEMA. (c) Company Law. (d) SEBI. |
(1) Governing Debentures. (2) Bank rate. (3) Mutual Funds. (4) Forex activities. |
Codes:
a) (a)-(4), (b)-(3), (c)-(2), (d)-(1).
b) (a)-(2), (b)-(4), (c)-(1), (d)-(3).
c) (a)-(2), (b)-(3), (c)-(1), (d)-(4).
d) (a)-(3), (b)-(4), (c)-(2), (d)-(1).
Ans: b) (a)-(2), (b)-(4), (c)-(1), (d)-(3).
43. Banking Ombudsman has been constituted under
a) Banking Regulation Act.
b) COPRA.
c) RBI Act.
d) Negotiable Instrument Act.
Ans: a) Banking Regulation Act.
44. Statement (A): Statutory Liquidity Ratio is maintained as a percentage of net demand and time liabilities.
Statement (B): Bill market system was introduced during the year 1955.
Codes:
a) Statement (A) is right (B) is wrong.
b) Statement (A) is wrong (B) is right.
c) Both the statements are right.
d) Both the statements are wrong.
Ans: a) Statement (A) is right (B) is wrong.
45. Which bank took over the entire undertaking of the ARDC?
a) RBI.
b) SBI.
c) NABARD.
d) SEBI.
Ans: c) NABARD.
46. ‘Currency Swap’ in International Business refers to
a) A state of affairs when external value of a currency falls.
b) A market for currency derivatives.
c) Exchange of cash flows in two different currencies for a predetermined period of time.
d) A market where currencies are bought and sold for their delivery on a future date.
Ans: c) Exchange of cash flows in two different currencies for a predetermined period of time.
47. Who stated that multi-nationalism and expending world trade are two sides of the same coin?
a) World Trade Organisation.
b) Peter F. Drucker.
c) International Labour Organisation.
d) C. K. Prahallad.
Ans: b) Peter F. Drucker.
48. “An area designated by the Govt. where goods are manufactured with the help of duty-free inputs and are exported to foreign markets” is called
a) Export Processing Zone.
b) Special Economic Zone.
c) Free Market Zone.
d) Import-Export Zone.
Ans: a) Export Processing Zone.
49. Match the following theories of international trade in List – I with their pro-pounder in List – II:
|
List – I |
List – II |
|
(a) Mercantilism theory. (b) Theory of absolute cost advantage. (c) National competitive advantage theory. (d) Factor endowment theory. |
(1) Michael Porter. (2) David Hume. (3) Eli Heckscher. (4) Adam Smith. |
Codes:
a) (a)-(1), (b)-(3), (c)-(4), (d)-(2).
b) (a)-(3), (b)-(2), (c)-(1), (d)-(4).
c) (a)-(2), (b)-(4), (c)-(1), (d)-(3).
d) (a)-(4), (b)-(1), (c)-(2), (d)-(3).
Ans: c) (a)-(2), (b)-(4), (c)-(1), (d)-(3).
50. Assertion (A): Expropriation and confiscation are one and the same.
Reason (R): Expropriation is taking over the assets of a company by the Govt. by paying compensation while confiscation is forced acquisition a company’s assets without payment compensation.
Codes:
a) (A) is correct, but (R) is incorrect.
b) (A) is incorrect, but (R) is correct.
c) Both (A) and (R) are incorrect.
d) Both (A) and (R) are correct.
Ans: b) (A) is incorrect, but (R) is correct.
***
Post a Comment
Kindly give your valuable feedback to improve this website.