KSET Commerce Solved Paper 2017 [Paper III]

KSET Solved Question Paper Commerce

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

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 2017 [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. Which of the following statement is incorrect?

(A) Accounting standards in India are framed by IASB.

(B) Human resource accounting is mandatory in India.

(D) Responsibility accounting is followed where revenue and cost centres can be identified.

Ans: (B) Human resource accounting is mandatory in India.

2. The cost of a machine is Rs. 70,000. It has a 10 year life at the end of which is expected to realise Rs. 5,000. The depreciation for first 4 years on a straight line basis is

(A) Rs. 28,000.

(B) Rs. 26,000.

(D) Rs. 20,000.

Ans: (B) Rs. 26,000.

3. Match the following:

List – I

List – II

(a) Money measurement concept.

(b) Business entity concept.

(d) Dual aspect concept.

(1) Applicable to all forms of business.

(2) Basic accounting.

(3) Original purchase price of assets.

(4) Applicable to those transactions of financial nature.

Codes:

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

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

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

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

4. Prohibition on forward trading was rescinded by Govt. of India in

(A) 2001.

(B) 2010.

(D) 2003.

5. The present value of perpetual bond that pays interest of Rs. 110 annually, given r = 11% will be

(A) Rs. 10,000.

(B) Rs. 1,100.

(D) Rs. 1,000.

Ans: (D) Rs. 1,000.

6. A zero-coupon bond of maturity value of Rs. 1,000 is currently selling in the market for Rs. 596.30. The term to maturity is 6 years. What is its YTM?

(A) 10%.

(B) 9%.

(D) 12%.

Ans: (B) 9%.

7. Assertion (A): Blue chip shares are listed on stock exchange.

Reason (R): Blue chip shares give consistent high dividends.

Codes:

(A) (A) is right, (R) is wrong.

(B) (A) is wrong, (R) is right.

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

Ans: (D) Both (A) and (R) are right.

8. The sensitivity of a stock’s return to the changes in the market is measured by

(A) Standard deviation.

(B) Beta.

(D) Value at risk.

Ans: (B) Beta.

9. Which of the following are the methods of marketing new issues of securities?

(1) Listing of securities.

(2) Jobbers and brokers.

(3) Private placement of securities.

(4) Privileged subscriptions.

Codes:

(A) (1) and (2).

(B) (2) and (3).

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

Ans: (C) (3) and (4).

10. “Marketing to Market” implies adjusting traders profits or loss position on ________ basis.

(A) Daily.

(B) Weekly.

(D) Hourly.

Ans: (A) Daily.

11. Arrange the following in the order in which they came into existence in India.

(1) Masala Bonds.

(2) Convertible Debentures.

(3) Debentures.

(4) Inflation Index Bonds.

Codes:

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

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

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

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

12. “Short selling” means

(A) Selling less number of shares than the seller holds.

(B) Selling of shares without owning them.

(D) Not selling and holding the stocks.

Ans: (B) Selling of shares without owning them.

13. Assertion (A): “Price Discovery” is a function of derivatives market.

Reason (R): ‘Price Discovery’ deals with the study of influence of futures price on spot price.

Codes:

(A) (A) is correct, (R) is incorrect.

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

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

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

14. A fall in interest rates will make prices of Govt. Securities

(A) Go down.

(B) Go up.

(D) Unrelated to each other.

Ans: (B) Go up.

15. Match the following:

List – I

List – II

(a) Index option.

(b) Fungibility.

(d) American.

(1) Riskless profits.

(2) Option.

(3) Exchange.

(4) Futures market.

(5) Cash settlement.

Codes:

(A) (a)-(5), (b)-(4), (c)-(1), (d)-(2).

(B) (a)-(5), (b)-(4), (c)-(2), (d)-(1).

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

Ans: (A) (a)-(5), (b)-(4), (c)-(1), (d)-(2).

16. When a product is in the maturity stage

(A) The sales will increase at a decreasing rate.

(B) The sales will decline at an increasing rate.

(D) The sales will be more or less stagnant.

Ans: (A) The sales will increase at a decreasing rate.

17. Brand development index is

(A) The index sales of one brand to another brand.

(B) The index of brand sales to category sales.

(D) The rate of growth of sales of a product.

Ans: (B) The index of brand sales to category sales.

18. Brand extension means

(A) Using an existing brand to introduce a new product.

(B) Introducing a brand into a market.

(D) Introducing new brand in a new market.

Ans: (A) Using an existing brand to introduce a new product.

19. Match the following:

List – I

List – II

(a) Product positioning.

(b) Impulse buying.

(d) Dealer training.

(1) Buying without advance planning.

(2) Putting the product in the mind of customer.

(3) Improving performance of dealers through sharpening their skills.

(4) Larger in scope than physical and marketing logistics.

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)-(3), (d)-(4).

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

20. Put the buying process sequence in correct order.

(1) Attitude.

(2) Adoption.

(3) Legitimisation.

(4) Awareness.

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

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

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

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

21. Efforts of a company to inform, communicate, promote and sell its products and services over the internet is known as

(A) E-Commerce.

(B) E-Business.

(D) E-Selling.

Ans: (C) E-Marketing.

22. Assertion (A): Apple iphone is very expensive and it is the dream of the youth to have one.

Reasoning (R): Apple follows product line pricing to fix the price of its phones.

Codes:

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

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

(D) (A) is incorrect but (R) is correct.

Ans: (C) (A) is correct but (R) is incorrect.

23. Assertion (A): The demand curve of FMCG products is usually relatively inelastic. .

Reasoning (R): The FMCG companies usually follow skimming pricing as a strategy to fix the price.

Codes:

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

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

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

Ans: (D) (A) is correct and (R) is incorrect.

24. Match the following:

List – I

List – II

(a) Fare.

(b) Fee.

(d) Commission.

(1) Utilities.

(2) Brokerage service.

(3) Transport.

(4) Consultancy service.

Codes:

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

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

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

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

25. A promotion programme aimed primarily at middlemen is called

(A) Push strategy.

(B) Forced strategy.

(D) Pull strategy.

Ans: (A) Push strategy.

26. Selling a total package of related goods and services to solve a customer’s problem is called

(A) Complete selling.

(B) Comprehensive selling.

(D) System selling.

Ans: (D) System selling.

27. A highly coordinated distribution channel designed to improve operating efficiency and marketing effectiveness is called

(A) Horizontal marketing system.

(B) Alternative marketing system.

(D) Vertical marketing system.

Ans: (D) Vertical marketing system.

28. Duplicating the real market conditions to measure consumers’ response before large scale production of a product is known as

(A) Marketing test.

(B) Micro marketing.

(D) Test marketing.

Ans: (D) Test marketing.

29. Consumers who are bound by traditions and conventions

(A) Conventional customers.

(B) Traditional customers.

(D) Laggards.

Ans: (D) Laggards.

30. The process of moving towards long term, cost-effective, mutually beneficial trust with selected customers is known as

(A) Relationship marketing.

(B) Long-term marketing.

(D) Trust marketing.

Ans: (A) Relationship marketing.

31. Who is in a best position to observe and evaluate employee’s performance?

(A) Peers.

(B) Immediate superior.

(D) Top management.

Ans: (B) Immediate superior.

32. Statement (A): Hygiene factors are the intrinsic part of job carried out by an individual.

Statement (B): Theory of ‘Y’ represents the optimistic view about the human nature.

Codes:

(A) Both statement (A) and (B) are correct.

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

(D) Statement (A) is incorrect and (B) is correct.

Ans: (A) Both statement (A) and (B) are correct.

33. Match the following:

List – I

List – II

(a) Functional foremanship.

(b) Unity of direction.

(d) Need achievement.

(1) Max Weber.

(2) David C. McClelland.

(3) F. W. Taylor.

(4) Henry Fayol.

Codes:

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

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

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

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

34. Assertion (A): Focus of human resources management is positive. It is proactive in nature and pays attention to employee satisfaction.

Reasoning (R): The personnel management philosophy relied very much on the theory ‘X’ approach.

Codes:

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

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

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

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

35. One factor influencing the rater’s general impression on ratings of other factors is called

(A) Like me effect.

(B) Bias.

(D) Similarity factor.

Ans: (C) Halo effect.

36. Job analysis involves

(A) Job design.

(B) Job order.

(D) Job satisfaction.

Ans: (C) Job description.

37. A horizontal expansion of the job is termed as

(A) Job enrichment.

(B) Job involvement.

(D) Job enlargement.

Ans: (D) Job enlargement.

38. Appointment of labour welfare officer is mandatory according to

(A) Industrial Disputes Act.

(B) Employee’s State Insurance Act.

(D) Workmen Compensation Act.

Ans: (C) Factories Act.

39. Assertion (A): Apprenticeship programme is one of the widely used off-the-job training method.

Reasoning (R): On-the-job training methods are more effective than off-the-job training methods.

Codes:

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

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

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

Ans: (D) (A) is incorrect and (R) is correct.

40. Sensitivity training is also known as

(A) Operative training.

(B) T-group training.

(D) Theory of games.

Ans: (B) T-group training.

41. Match the following:

List – I

List – II

(a) Job simplification.

(b) Job enlargement.

(d) Job enrichment.

(1) Expanding jobs horizontally.

(2) Increasing job content.

(3) Dividing jobs into smaller components.

(4) Movement of employee from one job to another.

Codes:

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

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

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

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

42. The process of determining pay depending on the worth of a job is called

(A) Job pricing.

(B) Compensation plan.

(D) Wage fixation.

Ans: (A) Job pricing.

43. The first association of Indian workers was founded by

(A) Gandhiji.

(B) N. M. Lokhande.

(D) Lokamanya Tilak.

Ans: (B) N. M. Lokhande.

44. The All India Trade Union Congress was founded during

(A) 1878.

(B) 1920.

(D) 1953.

Ans: (B) 1920.

45. Statement (A): Employers usually survey other firms to see if they are paying comparable pay for comparable jobs.

Statement (B): Most employers pay just one pay rate for all jobs in a particular pay grade.

Codes:

(A) Both statements (A) and (B) are correct.

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

(D) Statement (A) is incorrect and (B) is correct.

Ans: (C) Statement (A) is correct and (B) is incorrect.

46. “Trade is a positive sum game” related to

(A) Theory of comparative advantage.

(B) Heckscher-ohlin theory.

(D) Product life cycle theory.

Ans: (A) Theory of comparative advantage.

47. Local content requirement is related to

(A) TRIPS.

(B) TRIMS.

(D) MFA.

Ans: (B) TRIMS.

48. The infant industry argument is related to

(A) Free trade.

(B) Subsidies.

(D) Protection.

Ans: (D) Protection.

49. FIPB is related to

(A) FII.

(B) FDI.

(D) Participatory notes.

Ans: (B) FDI.

50. “Multi National Enterprise is an imperialist tool for exploiting host countries”.

(A) Radical view.

(B) Pragmatic Nationalist view.

(D) Free market view.

Ans: (A) Radical view.

51. Put the following levels of economic integration from the lowest to the highest order.

(1) Common market.

(2) Free trade area.

(3) Customs union.

(4) Political union.

(5) Economic union.

(A) (1), (2), (3), (4), (5).

(B) (5), (3), (4), (2), (1).

(D) (4), (5), (1), (3), (2).

Ans: (C) (2), (3), (1), (5), (4).

52. Simultaneous purchase and sale of a given foreign exchange for two different value dates

(A) Futures.

(B) Options.

(D) Hedging.

Ans: (C) Swaps.

53. Bandwagon effect is related to

(A) Taking long positions.

(B) Currency swaps.

(D) Forward contracts.

Ans: (C) Investor psychology.

54. Bill of lading is a

(A) Receipt.

(B) A contract.

(D) All of the above.

Ans: (D) All of the above.

55. ECGC is concerned with

(A) Credit.

(B) Insurance.

(D) All of the above.

Ans: (B) Insurance.

56. “Trade goods and services for other goods and services when they cannot be traded for money” is known as

(A) Entrepot.

(B) Counter trade.

(D) Switch trading.

Ans: (B) Counter trade.

57. Statement (A): The objective of WTO is to expand trade among the member nations.

Statement (B): Removal of Quantitative restrictions help in duty free imports and hence expansion of trade.

Codes:

(A) Both Statements (A) and (B) are correct.

(B) Statement (A) is correct but Statement (B) is incorrect.

(D) Statement (A) is incorrect and Statement (B) is correct.

Ans: (B) Statement (A) is correct but Statement (B) is incorrect.

58. Match the following:

List – A

List – B

(a) Protection for technological innovations.

(b) Exclusive right to use artistic works.

(d) Last for a maximum of 15 years.

(1) Industrial designs.

(2) Trademarks.

(3) Copy rights.

(4) Patents.

Codes:

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

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

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

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

59. Assertion (A): MNCs try to adopt acquisition as a strategy to enter the foreign markets.

Reasoning (R): Green field investment takes a short-time to generate cash flow.

Codes:

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

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

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

Ans: (A) (A) is correct and (R) is incorrect.

60. Assertion (A): India is following managed floating rates system for determination of exchange rates.

Reasoning (R): If there is high volatility in the exchange rate, the RBI intervenes in the market to reduce the volatility.

Codes:

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

(B) (A) and (R) are incorrect.

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

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

61. Aggregate amount of deduction under sections 80 C, 80 CCC and 80 CCD cannot exceed

(A) Rs. 1,00,000.

(B) Rs. 50,000.

(D) Rs. 2,50,000.

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

62. For the purpose of deduction U/S 80 DD, assessees

(A) Is either an individual or HUF.

(B) Is resident in India.

(D) Is non-resident in India.

Ans: (C) Has a dependent disable relative.

63. A limited liability partnership firm is taxable at the rate of

(A) 10%.

(B) 20%.

(D) 40%.

Ans: (C) 30%.

64. To levy corporate income tax in India, the company’s residential status is decided on the basis of

(A) Company management and control.

(B) Nature of the company.

(D) Ownership of the company.

Ans: (A) Company management and control.

65. Match the following:

List – I

List – II

(a) GSTR – 1.

(b) GSTR – 2.

(d) GSTR – 4.

(1) Quarterly returns.

(2) Outward supply.

(3) Inward supply.

(4) Monthly returns.

Codes:

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

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

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

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

66. Exemption U/S 54 is available to

(A) All assessees.

(B) Individual only.

(D) HUF only.

Ans: (C) Individual and HUF.

67. Statement (A): Income which accrue outside India from a business controlled from India is taxable is case of resident only.

Statement (B): Deduction U/S 80 D is allowed to any assessee.

Codes:

(A) Statement (A) is correct, (B) is wrong.

(B) Statement (A) is wrong, (B) is correct.

(D) Both the statements are correct.

Ans: (C) Both the Statements are wrong.

68. The company is paying a basic salary of Rs. 60,000 pm. HRA (20% of basic pay), and rent of Rs. 8,000 pm to an employee. What is the HRA exemption from income tax for the employee?

(A) Rs. 48,000.

(B) Rs. 24,000.

(D) Rs. 96,000.

Ans: (B) Rs. 24,000.

69. Unabsorbed depreciation which could not be set off in the same assessment year, can be carried forward for

(A) 8 years.

(B) 4 years.

(D) Indefinite period.

Ans: (A) 8 years.

70. Statement (A): Education cess is leviable in case of all assessees.

Statement (B): Income deemed to accrue or arise in India is taxable in case of resident only.

Codes:

(A) Statement (A) is correct, but (B) is wrong.

(B) Statement (A) is wrong, but (B) is correct.

(D) Both the statements are correct.

Ans: (A) Statement (A) is correct, but (B) is wrong.

71. Match the following:

List – I

List – II

(a) Sec. 112.

(b) Sec. 46.

(d) Sec. 115 AC.

(1) Transfer of foreign exchange asset.

(2) Transfer of GDRs.

(3) Tax on L-T capital gains.

(4) Capital gains on distribution of assets.

Codes:

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

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

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

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

72. U/S 115 JB, the net profit shall be increased by the following items if already debited to P & L A/c.

(1) The amount of dividend paid.

(2) The amount of depreciation.

(3) The amount of deferred tax.

Codes:

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

(B) (2) and (3) are correct.

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

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

73. Long-term capital gains in case of a firm U/S 112 taxed at

(A) 40%.

(B) 30%.

(D) 20%.

Ans: (D) 20%.

74. ________ Section of I.T. Act accommodates all deductible expenses other than those specifically covered by other provisions.

(A) 37.

(B) 37(1).

(D) 37(3).

Ans: (B) 37(1).

75. Bond washing transaction is covered under which section of I.T. Act?

(A) Sec. 57.

(B) Sec. 94.

(D) Sec. 43.

Ans: (B) Sec. 94.

***

KSET Commerce Solved Paper 2017 [Paper III]