MAHA SET Commerce Solved Paper May 2016 [Paper II]

MAHA SET Commerce Solved Paper May 2016 [Paper II]

MAHA SET Solved Question Paper Commerce

[Time: 2 hour, 120 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 MAHA SET Commerce Solved Paper May 2016 [Paper II] 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. A change in the exchange rate will change the amount of local currency receivable on a bill denominated in a foreign currency. The risk involved is called:

a) Import risk.

b) Foreign exchange risk.

c) Transaction risk.

d) Monetary risk.

Ans: c) Transaction risk.

2. Computer system accessible to non-specialists to assist in planning and decision-making is called ________.

a) Disk operating system.

b) Expert system.

c) Management information system.

d) Decision support system.

Ans: d) Decision support system.

3. Finance Commission constituted by the ________.

a) RBI.

b) SEBI.

c) PNB.

d) President of India.

Ans: d) President of India.

4. What do you mean by Economic Plan?

a) Gandhian Plan.

b) National Plan.

c) Five Years Plan.

d) Year Plan.

Ans: c) Five Years Plan.

5. Medium, Small and Micro-Entrepreneurs contribute about ________ of the GDP of country.

a) 8%.

b) 19%.

c) 35%.

d) 40%.

Ans: d) 40%.

6. The assets are classified as current and fixed assets according to ________.

a) Accounting Period Concept.

b) Business Entity Concept.

c) Going Concern Concept.

d) Cost Concept.

Ans: c) Going Concern Concept.

7. For predicting financial distress, the Z-score approach to ratio analysis is developed by ________.

a) J. Betty.

b) Altman.

c) Robert Anthony.

d) Cox.

Ans: b) Altman.

8. The partner who does not contribute the capital, he is called ________.

a) Sleeping partner.

b) Nominal partner.

c) Secret partner.

d) Partner in profit only.

Ans: b) Nominal partner.

9. Profit prior to acquisition is credited to ________ in case of consolidation of financial statement of holding company and its subsidiary company.

a) Profit & Loss Account.

b) Profit & Loss Appropriation Account.

c) Investment Account.

d) Capital Reserve Account.

Ans: d) Capital Reserve Account.

10. If profit-volume ratio is 60% for a fixed cost of Rs. 3,000 and profit of Rs. 3,000, the variable cost should be ________.

a) Rs. 3,000.

b) Rs. 6,000.

c) Rs. 10,000.

d) Rs. 4,000.

Ans: d) Rs. 4,000.

11. Rightward shift of demand curve is an example of:

a) Contraction in demand.

b) Expansion in demand.

c) Increase in demand.

d) Decrease in demand.

Ans: c) Increase in demand.

12. In the law of variable proportions, when TP is maximum:

a) MP is rising.

b) MP is falling.

c) MP is horizontal line.

d) MP is ‘0’.

Ans: d) MP is ‘0’.

13. Long run equilibrium under perfect competition is:

a) Price = AR = MR.

b) TR = TC.

c) MR = MC.

d) Price = AR = MR = AC = MC.

Ans: d) Price = AR = MR = AC = MC.

14. Excess capacity exists under market:

a) Perfect competition.

b) Monopolistic competition.

c) Monopoly.

d) Oligopoly.

Ans: b) Monopolistic competition.

16. Which of the following is not the part of the subject matter of Business Statistics?

a) Presentation of data.

b) Analysis of data.

c) Interpretation of data.

d) Appointment.

Ans: d) Appointment.

19. Statistical hypothesis is the statement ________.

a) About the parameter.

b) About the data.

c) About the size of sample.

d) About the procedure.

Ans: a) About the parameter.

21. Which Principle of Management emphasises replacement of ‘rule of thumb’ method?

a) Administrative theory.

b) Decision theory.

c) Scientific management theory.

d) Contingency theory.

Ans: c) Scientific management theory.

22. In MBO, objects are determined:

a) Only by subordinate.

b) Only by top level officers.

c) By subordinate and top level officers.

d) By external agency.

Ans: c) By subordinate and top level officers.

23. The principle of Unity of Command implies ________.

a) Unity of thought and action.

b) Unity among subordinate.

c) Instructions from staff authority.

d) Instructions from line authority.

Ans: d) Instructions from line authority.

24. A formal organisation is one where ________.

a) Authority is formalized.

b) Relationships between people are well defined.

c) At every stage position, responsibility, authority and accountability are clearly defined.

d) Authority and responsibility are equated.

Ans: c) At every stage position, responsibility, authority and accountability are clearly defined.

25. Leadership qualities are inborn. This notion forms part of which of the following?

a) The followership theory of leadership.

b) The bahavioural theory of leadership.

c) The path goal theory of leadership.

d) The great men theory of leadership.

Ans: d) The great men theory of leadership.

26. Which is the first important factor of any marketing mechanism?

a) Effectiveness.

b) Change.

c) Management.

d) Organization.

Ans: b) Change.

27. The exchange value of product is termed as ________.

a) Value.

b) Price.

c) Money.

d) Cash.

Ans: b) Price.

28. The product personality does not include ________.

a) Product size.

b) Product price.

c) Product colour.

d) Product brand.

Ans: b) Product price.

29. ________ is one of the most popular form of outdoor advertising.

a) Newspaper.

b) Mail Advertising.

c) Posters.

d) Magazines.

Ans: c) Posters.

30. What is the important objective of marketing research?

a) To improve the efficiency of marketing system.

b) To accept all risks.

c) To collect different information.

d) To work factually.

Ans: c) To collect different information.

31. ________ refers to the mix of sources from which the long term funds required by a business are raised.

a) Financial Management.

b) Capital Management.

c) Capital Structure.

d) Finance Structure.

Ans: c) Capital Structure.

32. Low operating leverage and low financial leverage indicates that the company is not utilizing its ________ effectively.

a) Share Capital.

b) Debt Capital.

c) Retained Earnings.

d) Fixed Assets.

Ans: b) Debt Capital.

33. A plant would cost Rs. 1,00,000 and would fetch Rs. 30,000 in first year, Rs. 30,000 in second year, Rs. 40,000 in third year and Rs. 40,000 in fourth year. Hence, payback period would be:

a) 3 years.

b) 4 years.

c) 2 years.

d) 1 year.

Ans: a) 3 years.

34. When a company has surplus resources but does not have adequate liquidity then the company capitalizes its reserves and distributes these reserves as:

a) Equity Share.

b) Pref. Shares.

c) Bonus.

d) Debt.

Ans: c) Bonus.

35. Assuming that ‘Maxwell Co.’ pays a tax at 50%. Compute the after tax cost of capital in case of perpetual bond sold at par, coupon rate of interest being 7%.

a) 23.5%.

b) 14.5%.

c) 3.5%.

d) 4.17%.

Ans: c) 3.5%.

36. Which one of the following is the operational function of HRM?

a) Organising.

b) Planning.

c) Compensation.

d) Controlling.

Ans: c) Compensation.

37. Close ended performance appraisal system is used in ________.

a) Government organisation and public enterprises.

b) Multinational organisations.

c) Private organisations and multinational organisation.

d) Co-operative organisations and private organisation.

Ans: a) Government organisation and public enterprises.

38. From the following who did not make any contribution to ‘motivation’?

a) McGregor.

b) McCleland.

c) McFarland.

d) Maslow.

Ans: c) McFarland.

39. The most common activities performed by HR which are outsourced:

a) Occupational health, payroll, pensions and training.

b) Human Resource Planning.

c) Recruitment and Selection.

d) Assessment Centre.

Ans: a) Occupational health, payroll, pensions and training.

40. Worker’s Participation in Management means ________.

a) Duty.

b) Security.

c) Employee involvement.

d) Risk.

Ans: c) Employee involvement.

41. The interest rate of Reserve Bank of India charged to loans to Commercial Banks known as ________.

a) Bank Rate.

b) Credit Rate.

c) Repo Rate.

d) Prime Lending Rate.

Ans: a) Bank Rate.

42. The important factor of increasing non-performing assets of Nationalised Banks is ________.

a) Shortage of rain.

b) Political Interference.

c) Indebtness of farmer.

d) Inefficient management.

Ans: d) Inefficient management.

43. The main function of National Bank for Agriculture and Rural Development is ________.

a) To promote integrated rural development and secure prosperity of rural area.

b) To provide long term loan.

c) To refinance the rural bank.

d) To act as Apex Bank.

Ans: a) To promote integrated rural development and secure prosperity of rural area.

44. Which of the following functions is not performed by Private Banks?

a) Providing loans to customer.

b) Providing loans to priority sector.

c) Issuing cheque to customer.

d) Recovery of loans.

Ans: c) Issuing cheque to customer.

45. The system which converts Financial Securities into electronic form is called as ________.

a) Disinvestment.

b) Re-investment.

c) Re-finance.

d) De-materialisation.

Ans: d) De-materialisation.

46. “Difference in factor endowments explain international trade.” This theory is given by:

a) Leontief.

b) Bertil Ohlin.

c) J.S. Mill.

d) Haberler.

Ans: b) Bertil Ohlin.

47. Balance of trade is equal to:

a) Total receipt on current account minus total payments on capital account.

b) Net balance on current account.

c) Net balance of merchandise account.

d) Exports of visible minus imports of invisibles.

Ans: c) Net balance of merchandise account.

48. International Finance Corporation was established in:

a) July 1956.

b) November, 1960.

c) March, 1947.

d) 1946.

Ans: a) July 1956.

49. The important function of World Trade Organisation (WTO) is:

a) To promote international trade and aid among all the countries to promote economic growth.

b) To review and facilitate the coordination of activities of the other institutions, within the U.N.

c) To provide a machinery for international consultancy.

d) To facilitate the implementation and operation of multilateral trade agreement.

Ans: d) To facilitate the implementation and operation of multilateral trade agreement.

50. The trend in composition of India’s exports has been a substantial increase in importance of ________.

a) Agriculture and allied products.

b) Ores and minerals.

c) Petroleum products.

d) Manufactured goods.

Ans: d) Manufactured goods.