KSET Commerce Solved Paper 2017 [Paper II]
KSET Solved Question Paper Commerce
[Time: 1 hour 15 Minutes , 75 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 2017 [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 (
a) Unemployment.
b) Underemployment.
c) Disguised employment.
d) Non-monetised consumption.
Ans: d) Non-monetised consumption.
2. Which one among the following formulates the fiscal policy in India?
a) Ministry of Finance.
b) Finance Commission.
c) Reserve Bank of India.
d) Planning Commission.
Ans: a) Ministry of Finance.
3. Statement (1): Economic growth is no help in efforts to ease relative poverty.
Statement (2): If a Country’s GDP per head rose by 3% a year, it would take about 33 years for its output GDP per head to double.
a) Both Statement (1) and (2) are correct.
b) Both Statement (1) and (2) are incorrect.
c) Statement (1) is correct and Statement (2) is incorrect.
d) Statement (1) is incorrect and Statement (2) is correct.
Ans: b) Both Statement (1) and (2) are incorrect.
4. Match the following:
|
List – A |
List – B |
|
(a) National Development Council. (b) Indira Awas Yojana. (c) Jawahar Rozgar Yojana. (d) National Rural Employment Guarantee Programme. |
(1) 1985. (2) 1989. (3) 1952. (4) 2006. |
Codes:
a) (a)-(3), (b)-(1), (c)-(2), (d)-(4).
b) (a)-(4), (b)-(3), (c)-(2), (d)-(1).
c) (a)-(2), (b)-(1), (c)-(4), (d)-(3).
d) (a)-(2), (b)-(3), (c)-(1), (d)-(4).
Ans: a) (a)-(3), (b)-(1), (c)-(2), (d)-(4).
5. ‘The age of discontinuity’ is a book authored by
a) Adam Smith.
b) Peter F. Drucker.
c) J. M. Keynes.
d) John Drydon.
Ans: b) Peter F. Drucker.
6. “Anticipate no gains, but provide for all possible losses.” This is the dictum of ________ concept.
a) Matching concept.
b) Materiality concept.
c) Money measurement concept.
d) Conservative concept.
Ans: d) Conservative concept.
7. Cash flow arising from interest paid in case of a financial enterprise is a cash flow from
a) Operating activities.
b) Financing activities.
c) Both (A) and (B).
d) Investing activities.
Ans: a) Operating activities.
8. Given that the pre-tax profit but after interest @ 18% on Rs. 8,00,000 debt is Rs. 12,06,400 and the tax rate is @ 45%, the future maintainable profit on the basis of long-term fund approach will be
a) Rs. 6,63,520.
b) Rs. 7,42,720.
c) Rs. 79,200.
d) None of the above.
Ans: b) Rs. 7,42,720.
9. Assertion (A): Value of goodwill is to be divided by the number of shares to arrive at the intrinsic value per share.
Reasoning (R): Excess of purchase consideration over net worth results in an increase in the intrinsic value per share.
Codes:
a) Both (A) and (R) are correct.
b) Both (A) and (R) are incorrect.
c) (A) is correct and (R) is incorrect.
d) (A) is incorrect and (R) is correct.
Ans: a) Both (A) and (R) are correct.
10. Match the following:
|
List – A |
List – B |
|
(a) P/V ratio x Sales value. (b) P/V ratio x BEP sales. (c) P/V ratio x Margin of safety. (d) 1 – P/V ratio. |
(1) Fixed cost. (2) Profit. (3) Variable cost ratio. (4) Contribution. |
Codes:
a) (a)-(1), (b)-(2), (c)-(3), (d)-(4).
b) (a)-(4), (b)-(1), (c)-(2), (d)-(3).
c) (a)-(3), (b)-(4), (c)-(1), (d)-(2).
d) (a)-(2), (b)-(3), (c)-(4), (d)-(1).
Ans: b) (a)-(4), (b)-(1), (c)-(2), (d)-(3).
11. Triffin measures the degree of monopoly power in terms of
a) Income elasticity of demand.
b) Promotional elasticity of demand.
c) Price cross elasticity of demand.
d) Advertising elasticity of demand.
Ans: c) Price cross elasticity of demand.
12. The optimum size of a firm can exist
a) Only under monopoly.
b) Only under imperfect competition.
c) Only under perfect competition.
d) Under all types of market structure.
Ans: c) Only under perfect competition.
13. Statement (1): Perfect competition is a myth; monopolistic competition is fact of life.
Statement (2): Under perfect competition, products are homogeneous; in monopolistic competition, products are differentiated.
Codes:
a) (1) is correct, (2) is incorrect.
b) (1) is incorrect, (2) is correct.
c) Both (1) and (2) are incorrect.
d) Both (1) and (2) are correct.
Ans: d) Both (1) and (2) are correct.
15. Match the following:
|
List – I |
List – II |
|
(a) Joint Demand. (b) Joint Supply. (c) Derived Demand. (d) Competitive Demand. |
(1) Beaf and Hide. (2) Pepsi and Coco-cola. (3) Tea and Sugar. (4) Computer and Operator. |
Codes:
a) (a)-(3), (b)-(1), (c)-(4), (d)-(2).
b) (a)-(4), (b)-(2), (c)-(3), (d)-(1).
c) (a)-(2), (b)-(1), (c)-(3), (d)-(4).
d) (a)-(3), (b)-(4), (c)-(1), (d)-(2).
Ans: a) (a)-(3), (b)-(1), (c)-(4), (d)-(2).
16. The standard normal distribution has
a) Mean = 1 and S.D. = 0.
b) Mean = 1 and S.D. = 1.
c) Mean = 0 and S.D. = 0.
d) Mean = 0 and S.D. = 1.
Ans: d) Mean = 0 and S.D. = 1.
17. In testing of hypothesis, the decision to use a single tailed or two-tailed test depends upon
a) Size of the sample.
b) Alternative Hypothesis.
c) Null Hypothesis.
d) Sampling Error.
Ans: b) Alternative Hypothesis.
18. Which of the following is not a type of random sampling?
a) Stratified sampling.
b) Systematic sampling.
c) Judgement sampling.
d) Cluster Sampling.
Ans: c) Judgement sampling.
20. For the purpose of processing cheques, the data scanning is done by the banks with the help of
a) MICR.
b) UPC.
c) CCD.
d) LED.
Ans: a) MICR.
21. Which of the following functions of management is referred to as the essence of management?
a) Planning.
b) Organising.
c) Coordinating.
d) Controlling.
Ans: c) Coordinating.
22. Match the following:
|
List – A |
List – B |
|
(a) Mary Parker Follet. (b) L. Urwick. (c) Max Weber. (d) Blake and Mouton. |
(1) Bureaucracy. (2) Bridging scientific management and human relations. (3) Management Science. (4) Concern for people and concern for production. |
Codes:
a) (a)-(4), (b)-(3), (c)-(2), (d)-(1).
b) (a)-(2), (b)-(1), (c)-(4), (d)-(3).
c) (a)-(3), (b)-(4), (c)-(1), (d)-(2).
d) (a)-(2), (b)-(3), (c)-(1), (d)-(4).
Ans: d) (a)-(2), (b)-(3), (c)-(1), (d)-(4).
23. In the process of delegating authority, the superior delegates
a) Authority and responsibility.
b) Responsibility only.
c) Authority only.
d) Responsibility and accountability.
Ans: c) Authority only.
24. Assertion (A): Without co-ordination, people would lose sight of their roles within the total organization and be tempted to pursue their own interests.
Reasoning (R): Co-ordination is the process of integrating the activities of separate departments in order to pursue organizational goals effectively.
a) Both (A) and (R) are correct.
b) Both (A) and (R) are incorrect.
c) (A) is correct and (R) is incorrect.
d) (A) is incorrect and (R) is correct.
Ans: a) Both (A) and (R) are correct.
25. Power derived from the status or position in an organisation is called
a) Expert power.
b) Legitimate power.
c) Power of experience.
d) Referent power.
Ans: b) Legitimate power.
26. Match the name of the Banks with their tag line:
|
Name of the Bank |
Tag line |
|
(a) Bank of Baroda. (b) Bank of Rajasthan. (c) H.S.B.C. (d) Standard Chartered Bank. |
(1) Dare to dream. (2) Your right partner. (3) India’s International Bank. (4) The World’s Local Bank. |
Codes:
a) (a)-(2), (b)-(4), (c)-(1), (d)-(3).
b) (a)-(3), (b)-(1), (c)-(4), (d)-(2).
c) (a)-(3), (b)-(1), (c)-(2), (d)-(4).
d) (a)-(2), (b)-(1), (c)-(4), (d)-(3).
Ans: b) (a)-(3), (b)-(1), (c)-(4), (d)-(2).
27. A group of people with shared value systems based on common life experiences and situations is called
a) Social class
b) Life-style groups.
c) Cultural groups.
d) Sub-cultural groups.
Ans: c) Cultural groups.
28. Providing a total package of related goods and services to solve a customer’s needs is called
a) Complete selling.
b) Wholesale selling.
c) Conglomerate selling.
d) Systems selling.
Ans: d) Systems selling.
29. Statement (1): Companies normally develop product lines rather than single product and introduce price steps.
Statement (2): Many companies offer optional products, features and services along with their main product to boost the sales.
a) Both (1) and (2) are incorrect.
b) Both (1) and (2) are correct.
c) (1) is correct and (2) is incorrect.
d) (1) is incorrect and (2) is correct.
Ans: b) Both (1) and (2) are correct.
30. Set of consumers who are interested in and access to a particular offer is called
a) Potential market.
b) Penetratable market.
c) Target market.
d) Available market.
Ans: c) Target market.
31. If a company’s cost of debt is 8%, financial leverage ratio is 0.5, the ROI is 14% and the tax rate is 40%, its cost of equity will be
a) 06%.
b) 10%.
c) 10.20%.
d) 10.30%.
Ans: c) 10.20%.
32. Maintenance of dividend equalisation reserve is the hallmark of
a) Constant dividend pay-out-policy.
b) Conservative dividend policy.
c) Liberal dividend policy.
d) None of the above.
Ans: a) Constant dividend pay-out-policy.
33. Money cash flows are to be discounted by using
a) Money discount rate.
b) Real discount rate.
c) 1 + Money discount rate.
d) 1 + Real discount rate.
Ans: a) Money discount rate.
34. Assertion (A): Not approach to capital structure implies that the Ke goes on increasing with the successive increase in the financial leverage.
Reasoning (R): Under NOI approach, Ke is undefined when the degree of financial leverage is equal to one.
Codes:
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.
Ans: a) Both (A) and (R) are correct.
35. Match the following:
|
List – A |
List – B |
|
(a) Pareto Analysis. (b) Constant cash flows. (c) Ve = Vf – Vd. (d) Bird-in-the-hand fallacy. |
(1) Not approach. (2) M-M model. (3) Baumol Model. (4) 80/20 rule. |
Codes:
a) (a)-(1), (b)-(2), (c)-(3), (d)-(4).
b) (a)-(4), (b)-(3), (c)-(2), (d)-(1).
c) (a)-(4), (b)-(3), (c)-(1), (d)-(2).
d) (a)-(2), (b)-(1), (c)-(3), (d)-(4).
Ans: c) (a)-(4), (b)-(3), (c)-(1), (d)-(2).
36. When a process undergoes a change due to re-engineering programme, ________ of the concerned employee also changes.
a) Qualification.
b) Designation.
c) Job profile.
d) Job experience.
Ans: c) Job profile.
37. Statement (1): Sound policies do not help in resolving intrapersonal, inter-personal and inter-group conflicts.
Statement (2): The Delphi technique is named after the ancient Greek philosopher Peter Delphi.
Codes:
a) Both (1) and (2) are correct.
b) Both (1) and (2) are incorrect.
c) (1) is correct and (2) is incorrect.
d) (1) is incorrect and (2) is correct.
Ans: b) Both (1) and (2) are incorrect.
38. Which of the following is a Human Resource Model?
a) The Harward Model.
b) Systems Theory Model.
c) McGregor’s Model.
d) Lawler and Porter Model.
Ans: a) The Harward Model.
39. Match the following objectives and functions:
|
Objectives |
Functions |
|
(a) Functional. (b) Organisational. (c) Societal. (d) Personal. |
(1) Employee relations. (2) Compensation. (3) Assessment. (4) Union-management relations. |
Codes:
a) (a)-(2), (b)-(4), (c)-(1), (d)-(3).
b) (a)-(3), (b)-(4), (c)-(2), (d)-(1).
c) (a)-(4), (b)-(3), (c)-(1), (d)-(2).
d) (a)-(3), (b)-(1), (c)-(4), (d)-(2).
Ans: d) (a)-(3), (b)-(1), (c)-(4), (d)-(2).
40. Excessive reliance on internal recruitment by an organisation would lead to the serious problems of
a) Reduced job performance.
b) Internal resistance.
c) Lack of motivation.
d) Labour turnover.
Ans: a) Reduced job performance.
41. Bank of Cochin merged with
a) Punjab National Bank.
b) State Bank of India.
c) Bank of Baroda.
d) Bank of Rajasthan.
Ans: b) State Bank of India.
42. Minimum period of a certificate of deposit is
a) 7 days.
b) 10 days.
c) 15 days.
d) 30 days.
Ans: a) 7 days.
43. Match the following:
|
Bank |
Slogans |
|
(a) State Bank of India. (b) CITI Bank. (c) Allahabad Bank. (d) Bank of India. |
(1) A tradition of trust. (2) Relationships beyond banking. (3) Pure banking, Nothing else. (4) Let’s get it done. |
Codes:
a) (a)-(3), (b)-(4), (c)-(2), (d)-(1).
b) (a)-(4), (b)-(3), (c)-(1), (d)-(2).
c) (a)-(3), (b)-(4), (c)-(1), (d)-(2).
d) (a)-(2), (b)-(1), (c)-(4), (d)-(3).
Ans: c) (a)-(3), (b)-(4), (c)-(1), (d)-(2).
44. Statement (1): An electronic fund transfer system that operates on deferred net settlement basis which settles transactions in batches is referred to as NEFT.
Statement (2): The risk that a bank faces while trading in government securities is called trade risk.
Codes:
a) Both the Statements are true.
b) Both the Statements are false.
c) Statement (1) is true and (2) is false.
d) Statement (2) is true and (1) is false.
Ans: c) Statement (1) is true and (2) is false.
45. The earlier name of AXIS Bank Ltd. is
a) UTI Bank Limited.
b) Times Bank Limited.
c) Bank of Madhura Limited.
d) Bank of Karad.
Ans: a) UTI Bank Limited.
46. The phenomenon whereby a currency crisis in one country makes currency crisis in another country is known as
a) Asymmetric.
b) Contagion.
c) Devaluation.
d) Depreciation.
Ans: b) Contagion.
47. International Monetary Fund (IMF) was established to
a) Promote international monetary co-operation.
b) Exchange rate stability and orderly exchange rage arrangements.
c) To foster economic growth and high employment.
d) All of the above.
Ans: d) All of the above.
48. Political risk is a function of
a) The probability that a given political event will affect a given firm.
b) The magnitude of the event’s impact.
c) Both (A) and (B).
d) Neither (A) nor (B).
Ans: c) Both (A) and (B).
49. Match the following:
|
MNE |
Country |
|
(a) Pfizer. (b) Volkswagen. (c) Samsung. (d) Nokia. |
(1) Germany. (2) Finland. (3) USA. (4) Korea. |
Codes:
a) (a)-(2), (b)-(3), (c)-(4), (d)-(1).
b) (a)-(3), (b)-(1), (c)-(4), (d)-(2).
c) (a)-(1), (b)-(4), (c)-(2), (d)-(3).
d) (a)-(4). (b)-(2), (c)-(1), (d)-(3).
Ans: b) (a)-(3), (b)-(1), (c)-(4), (d)-(2).
50. GATT covered intellectual property issue in the following round
a) Uruguay Round.
b) Geneva Round.
c) Tokyo Round.
d) Kennady Round.
Ans: a) Uruguay Round.
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