MAHA SET Commerce Solved Paper May 2016 [Paper III]

MAHA SET Commerce Solved Paper May 2016 [Paper III]

MAHA SET Solved Question Paper Commerce

[Time: 2 hour, 120 Minutes; Maximum Marks: 150]

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

In this post you will get MAHA SET Commerce Solved Paper May 2016 [Paper III] with Proper Explanation. MAHA SET General Paper 1 Solutions will also be available very soon on our website.

MAHA SET Exam is conducted every year by the Savitribai Phule Pune University. Question Papers of MAHA SET Exam is tough as compared to UGC NET Exam question paper. Syllabus of MAHA SET Exam and UGC NET exam is similar. You can refer MAHA SET Commerce syllabus for 2025 here.

1. Cost of intangible fixed assets are ________ over their useful lives.

a) Depreciated.

b) Amortised.

c) Charged.

d) Allocated.

Ans: b) Amortised.

2. Consider the following statements with the help of alternatives given below:

Select reserves serve the purpose of:

(1) Enabling the directors to tide over unfavorable items.

(2) Meeting exceptional losses.

(3) Increasing the working capital.

Which of the following statements are correct?

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

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

c) (1) and (3) are correct.

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

Ans: c) (1) and (3) are correct.

3. Which one of the following accounting equation is correct?

a) Assets = Owner’s Equity.

b) Assets = Liabilities + Owner’s Equity.

c) Assets = Liabilities – Owner’s Equity.

d) Assets + Liabilities = Owner’s Equity.

Ans: b) Assets = Liabilities + Owner’s Equity.

4. Financial instruments are useful for:

a) Creating benefits for Govt.

b) Providing Credit creation for Banks.

c) Mobilization of savings.

d) For creating direct securities.

Ans: c) Mobilization of savings.

5. The first attempt to value human beings in monetary term was made by:

a) William Petty.

b) William C. Pyle.

c) Shultz.

d) Morese.

Ans: a) William Petty.

6. Consider the following statement with the help of alternatives given below:

A mutual fund helps the investor in securing:

(1) Professional Management.

(2) Diversification of risk.

(3) Steady appreciation.

(4) Lower cost of operation.

Which of these statements are correct?

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

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

c) (2) and (3).

d) (3) and (4).

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

7. The price specified in the option contract which means the underlying asset to be purchased or sold by the buyer/holder is known as:

a) Strike price.

b) Exercise price.

c) Stock Exchange price.

d) Cost price.

Ans: a) Strike price.

8. An investor with a low risk preference should be advised to invest in:

a) Turn around stocks and aim at short-term gains.

b) Emerging blue chips and aim at medium-term gains.

c) Speculative stocks and aim at short-term gains.

d) Super stocks and aim at long-term gains.

Ans: a) Turn around stocks and aim at short-term gains.

9. The department under which the manager has control over revenues, expenses and the amount invested in asset centres is known as ________.

a) Profit centre.

b) Cost centre.

c) Investment centre.

d) Revenue centre.

Ans: c) Investment centre.

10. Lease financing is:

a) A sale of goods to the lessee.

b) It is a hire of goods on rent.

c) It is a transfer of ownership.

d) It is a financing partnership between lessor and lessee.

Ans: d) It is a financing partnership between lessor and lessee.

11. Two companies, X Ltd. and Y Ltd. go into liquidation to form a new company, Z Ltd. It is a case of:

a) Absorption.

b) External Reconstructions.

c) Amalgamation.

d) Demerger.

Ans: c) Amalgamation.

12. A Certificate of deposit is a:

a) Fixed deposit in a bank.

b) Short-term negotiable instruments in bearer form.

c) A promissory note to pay a sum of money to the issuer.

d) It is a government treasury bill.

Ans: b) Short-term negotiable instruments in bearer form.

13. Floating rate bonds:

a) These bonds are issued in small parts of the total bond.

b) These bonds are ‘American Depository Receipt’.

c) These bonds are also called ‘Drop Lock Bonds’.

d) These bonds are also called ‘Floating Rate Notes’.

Ans: d) These bonds are also called ‘Floating Rate Notes’.

14. The process of managing the sales ledger of a client by a financial service company is called:

a) Forfeiting.

b) Factoring.

c) Leasing.

d) Securitisation of debt.

Ans: b) Factoring.

15. Interest rate risk:

a) Is also referred to as inflating risk.

b) Is affected by changes in social attitudes.

c) Is affected by changes in lending ratio.

d) Is affected by changes in the business cycle.

Ans: c) Is affected by changes in lending ratio.

16. Which is not a primary buying motive?

a) Food and Drink.

b) Comfort.

c) Attraction of opposite sex.

d) Lifestyle.

Ans: d) Lifestyle.

17. Which of the following is not a marketing factor?

a) Consumer market.

b) Area of market.

c) Durability.

d) No. of customers.

Ans: c) Durability.

18. The term social marketing refers to ________.

a) New product development and sales for society.

b) A philosophy that emphasizes on customer value and satisfaction.

c) A philosophy that stresses on customer delightment in society.

d) A philosophy that emphasizes on customer satisfaction and welfare of the society at large.

Ans: d) A philosophy that emphasizes on customer satisfaction and welfare of the society at large.

19. Which of the following is not macro-marketing environment?

a) Economic.

b) Social and cultural.

c) Customers.

d) Technological.

Ans: c) Customers.

20. ________ is the concept of marketing that holds consumer will prefer those products that offer the most quality or performance.

a) Product concept.

b) Production concept.

c) Selling concept.

d) Consumer-oriented concept.

Ans: a) Product concept.

21. Which of the techniques is not included in marketing control?

a) ABC Analysis.

b) Marketing Audit.

c) Sales Analysis.

d) Market Share Analysis.

Ans: a) ABC Analysis.

22. What does green marketing imply?

a) It implies marketing of only green colour products.

b) It implies marketing of safe and eco-friendly products.

c) It implies complete ban on chemical products.

d) It implies punishing factory owners.

Ans: b) It implies marketing of safe and eco-friendly products.

23. Which ‘P’ is more sensitive in marketing?

a) Product.

b) Price.

c) Promotion.

d) Place.

Ans: b) Price.

24. When any company of one country desires to capture the market of another country on some reasonable and political terms, it is termed as ________.

a) Multiplex Marketing.

b) Mega-marketing.

c) Re-marketing.

d) Mini-marketing.

Ans: b) Mega-marketing.

25. Psycho-analytic theory was introduced by ________.

a) T. Vebler.

b) S. Freud.

c) Festinger.

d) P. Kotler.

Ans: b) S. Freud.

26. Which of the following is marketing research method?

a) Observation.

b) Questionnaire.

c) Interview.

d) Schedule.

Ans: d) Schedule. a) Observation. b) Questionnaire. c) Interview.

27. Which of the following is right kind of level of a product?

a) Sales label.

b) Purchase label.

c) Competitor’s label.

d) Brand label.

Ans: d) Brand label.

28. Which statement is not true?

a) Cyber Marketing and E-marketing are the same.

b) E-marketing is one of the options of direct marketing.

c) E-marketing is applicable to services only.

d) E-marketing offers high convenience reliability and speed.

Ans: c) E-marketing is applicable to services only.

29. What is market environment?

a) Micro-environment.

b) Macro-environment.

c) Cultural environment.

d) Micro-and Macro-environment.

Ans: d) Micro-and Macro-environment.

30. Which of the following is not method of selling price?

a) Marginal cost pricing method.

b) Cost plus pricing method.

c) Break-even pricing method.

d) First-in-first-out pricing method.

Ans: d) First-in-first-out pricing method.

31. T-group training is also called as:

a) Management development.

b) Employment empowerment.

c) Sensitivity training.

d) Team building.

Ans: c) Sensitivity training.

32. Graphic-Rating Scale is a method of:

a) Performance Appraisal.

b) Wage Payment.

c) Participative Management.

d) Training.

Ans: a) Performance Appraisal.

33. Joint Management Council is a form of ________.

a) Industrial Relation.

b) Trade Union.

c) Workers’ Participation in Management.

d) Negotiation.

Ans: c) Workers’ Participation in Management.

34. To calculate the no. of workers required for various jobs with reference to a planned output is called:

a) Workload Analysis.

b) Workforce Analysis.

c) Job Analysis.

d) Prediction.

Ans: a) Workload Analysis.

35. Finding out the abilities or skills of employees required to do a job efficiently is called:

a) Job description.

b) Job specification.

c) Job analysis.

d) Job evaluation.

Ans: c) Job analysis.

36. Which function is not included in staffing?

a) Transfer.

b) Recruitment.

c) Induction and Orientation.

d) Organisation, Planning and Development.

Ans: d) Organisation, Planning and Development.

37. In the Factories Act no. workers is permitted to work for more than ________ hours in a day.

a) 10.

b) 8.

c) 24.

d) 9.

Ans: d) 9.

38. Which among the following allowances is paid to employees in order to enable them to meet the increasing price of essential commodities?

a) Bonus.

b) Rent allowance.

c) Increment in salary.

d) Dearness allowance.

Ans: d) Dearness allowance.

39. Remuneration to blue collar workers is called ________.

a) Wage.

b) Salary.

c) Compensation.

d) Payment.

Ans: a) Wage.

40. The minimum wage rate could be subject to revision of intervals not exceeding ________.

a) 2 years.

b) 4 years.

c) 5 years.

d) 10 years.

Ans: c) 5 years.

41. In incentive payment plan a worker’s pay is determined by ________.

a) Management.

b) Performance.

c) Seniority.

d) Profits.

Ans: b) Performance.

42. In a model grievance procedure, the supervisor has to respond against the grievance within ________.

a) 2 days.

b) 3 days.

c) 5 days.

d) 7 days.

Ans: a) 2 days.

43. 360⁰ feedback involves appraisals by:

a) Subordinates.

b) Line manager.

c) Superiors.

d) Anyone who is directly in contact with appraiser.

Ans: d) Anyone who is directly in contact with appraiser.

44. Which among the following methods is latest method of performance appraisal?

a) Confidential report.

b) Essay evaluation.

c) Critical incident techniques.

d) 360⁰ degree and assessment centre.

Ans: d) 360⁰ degree and assessment centre.

45. The Payment of Gratuity Act was passed in ________.

a) 1948.

b) 1961.

c) 1972.

d) 1965.

Ans: c) 1972.

46. ________ are also known as Transnational Corporations (TNCs).

a) Joint Ventures.

b) Foreign Institutions.

c) Multinational Corporations (MNCs)

d) Global Firm.

Ans: c) Multinational Corporations (MNCs)

47. ________ is not the agreement of World Trade Organisation (W.T.O.).

a) Agreement on Agriculture.

b) Agreement on TRIPS.

c) TRIMS.

d) Agreement on Industry.

Ans: d) Agreement on Industry.

48. American Depository Receipts (ADR) are denominated in ________.

a) U.S. Dollar.

b) Francs.

c) Lira.

d) Euro.

Ans: a) U.S. Dollar.

49. ________ is for those instruments which are synthetic financial products derived from the real assets or stocks or commodities.

a) Spot market.

b) Derivative market.

c) Future market.

d) Forward market.

Ans: b) Derivative market.

50. ________ is not the condition under future contracts.

a) Delivery is necessary.

b) Price is known in advance.

c) The risk is borne both by buyers and sellers.

d) Payment is made on the spot.

Ans: d) Payment is made on the spot.

51. ________ is a joint collaboration in the field of manufacturing, processing and marketing by two or more countries.

a) Joint venture.

b) MNCs.

c) Mergers and Acquisitions.

d) Foreign Technical Collaborations.

Ans: a) Joint venture.

52. FIIs must initially registered with ________ on the basis of their registration with the regulatory organisation for the stock market in their country of incorporation.

a) RBI.

b) SEBI.

c) Foreign Investment Promotion Board (FIPB).

d) Controller of Capital Investment (CCI).

Ans: b) SEBI.

53. The NAFTA commenced operations from ________.

a) January 1994.

b) November 1994.

c) 1990.

d) June 1997.

Ans: a) January 1994.

54. The ASEAN includes Brunies, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam Myanmar and ________.

a) Bangladesh.

b) Pakistan.

c) China.

d) Cambodia.

Ans: d) Cambodia.

55. ________ coordinates and monitors the implementation of SAARC programmes.

a) Council of Ministers of SAARC.

b) Standing Committee of SAARC.

c) SAARC Secretariat.

d) Programming Committee of SAARC.

Ans: c) SAARC Secretariat.

56. Current account convertibility process was completed by ________ in India.

a) August 1995.

b) January 1994.

c) June 1993.

d) July 1991.

Ans: b) January 1994.

57. Chairman of Committee on Capital Account was ________.

a) S.S. Tarapore.

b) Y.V. Reddi.

c) Kelkar.

d) Raghuram Rajan.

Ans: a) S.S. Tarapore.

58. Foreign Exchange Rate is determined by demand for and supply of foreign exchange in the market, according to ________.

a) Mint Parity Theory.

b) Purchasing Power Parity Theory.

c) Balance of Payments Theory.

d) Forex Market.

Ans: b) Purchasing Power Parity Theory. c) Balance of Payments Theory.

59. The Committee on Capital Account Convertibility laid down three preconditions:

(1) Fiscal consolidation.

(2) A mandated inflation target.

(3) ________

a) Strengthening of the financial sector.

b) Reducing current account deficit.

c) Strengthening industrial sector.

d) 8% growth of G.D.P.

Ans: a) Strengthening of the financial sector.

60. Physical delivery of foreign exchange has to take place in case of ________.

a) Spot market.

b) Option market.

c) Future market.

d) Forward market.

Ans: a) Spot market.

61. Which of the following receipts from agricultural operations is chargeable to tax?

a) Land situated in Andaman Island used for agricultural operations.

b) Land situated in Lakshadweep Island used for agricultural operations.

c) Land situated in Ladakh Region used for agricultural operations.

d) Land situated in Sri Lanka used for agricultural operations.

Ans: d) Land situated in Sri Lanka used for agricultural operations.

62. Which of the following companies is not an Indian Company, as per Income Tax Act, 1961?

a) Tata Motors Ltd.

b) Vodafone India Ltd.

c) Branch of Citi Bank NA.

d) Life Insurance Corporation of India established under LIC Act, 1956.

Ans: d) Life Insurance Corporation of India established under LIC Act, 1956.

63. The maximum amount on which income tax is not chargeable for A.Y. 2013-14 in case of a cooperative society is:

a) Rs. 2,50,000.

b) Rs. 10,000.

c) Rs. 1,00,000.

d) Nil.

Ans: b) Rs. 10,000. d) Nil.

64. Minor as per Income Tax Act means an individual who has not completed the age of ________ years.

a) 15.

b) 18.

c) 21.

d) 25.

Ans: b) 18.

65. X is entitled to children education allowance of Rs. 200 p.m. for 3 children, including a twin. The exempt amount is:

a) Rs. 7,200.

b) Rs. 2,400.

c) Rs. 4,800.

d) Rs. 3,600.

Ans: b) Rs. 2,400.

66. Rates of tax deduction at source from payment to non-residents are given by:

a) Income Tax Act, 1961.

b) Annual Finance Act.

c) Central Board of Direct Taxes.

d) Finance Minister of India.

Ans: b) Annual Finance Act.

67. Rebate u/s 87A is available to an individual whose total income is below ________.

a) Rs. 2,50,000.

b) Rs. 3,00,000.

c) Rs. 5,00,000.

d) Rs. 10,00,000.

Ans: c) Rs. 5,00,000.

68. The aggregate limit for the deduction for interest on housing loan used for purchase and repairs of a self-acquired house property for A.Y. 14-15 is ________.

a) Rs. 30,000.

b) Rs. 1,50,000.

c) Rs. 1,80,000.

d) No limit.

Ans: b) Rs. 1,50,000.

69. A purchased 100 equity shares of a listed company in Dec. 2012 for Rs. 50,000. He receives 100 bonus shares of that company in Feb. 2014. He sells all 200 shares through Stock Exchange in Dec. 2014 for Rs. 60,000. The taxable capital gains will be:

a) Rs. 10,000.

b) Rs. 30,000.

c) Rs. 5,000.

d) Nil.

Ans: a) Rs. 10,000.

70. X, HUF receives a gift of Rs. 51,000 from a relative of Mr. X. The taxable amount is ________.

a) Rs. 51,000.

b) Rs. 1,000.

c) Rs. 25,000.

d) Nil.

Ans: d) Nil.

71. Deduction u/s 80 TTA is available in respect of interest earned from Bank on ________.

a) Savings A/c.

b) Fixed Deposit A/c.

c) Recurring Deposit A/c.

d) Cash Certificate.

Ans: a) Savings A/c.

72. The due date for filing income tax returns to a company subject to domestic transfer pricing audit is ________.

a) 31^st July.

b) 30^th September.

c) 30^th November.

d) 31^st December.

Ans: c) 30^th November.

73. The companies carrying on business are required to file their return of income in Form No. ________.

a) ITR-1.

b) ITR-2.

c) ITR-5.

d) None of the above.

Ans: d) None of the above.

74. Deduction u/s 80E in respect of payment of interest on education loan is available to education beyond ________.

a) 10^th standard.

b) 12^th standard.

c) Graduation.

d) Primary education.

Ans: b) 12^th standard.

75. X owns two houses. Both are self-occupied. What is the limit for interest deduction on having loan in respect of deemed let out of property? (A.Y. 2014-15)

a) Rs. 30,000.

b) Rs. 1,50,000.

c) Rs. 2,00,000.

d) No limit.

Ans: d) No limit.