August 2017 GSET Commerce Solved Paper
Paper – II (Commerce)
Subject Code: 17
Marks: 100
Time: 75 Minutes (1.25 Hours)
Note: This paper contains FIFTY (50) multiple choice/Assertion/Reasoning Matching questions. Each question carrying TWO (2) marks. Attempt All the questions.
1. Privatisation of ownership through sale of equity share is called:
(A) Merger.
(B) Disinvestment.
(C) Contracting.
(D) None of the above.
Ans: (B) Disinvestment.
2. The liability that is payable in more than a year and is not to liquidated from current assets:
(A) Current Liability.
(B) Fixed Liability.
(C) Contingent Liability.
(D) All of the above.
Ans: (B) Fixed Liability.
3. The kinked demand curve explains:
(A) Price rigidity.
(B) Price flexibility.
(C) Demand rigidity.
(D) Demand flexibility.
Ans: (A) Price rigidity.
4. Which among the following is not sampling based on probability?
(A) Random Sample.
(B) Strata Sample.
(C) Cluster Sample.
(D) Quota Sample.
Ans: (D) Quota Sample.
5. MATRIX organisation is also known as:
(A) Product Organisation.
(B) Process Organisation.
(C) Project Organisation.
(D) Functional Organisation.
Ans: (C) Project Organisation.
6. Which of the following would be the best illustration of a subculture?
(A) A religion.
(B) A group of close friends.
(C) Your University.
(D) Your Occupation.
Ans: (A) A religion.
7. ‘BOLT’ system in the Indian Securities market is related to:
(A) National Stock Exchange.
(B) Bombay Stock Exchange.
(C) Over the Counter Stock Exchange of India.
(D) Multi commodity Stock Exchange.
Ans: (B) Bombay Stock Exchange.
8. Providing employees with basic background information about the firm is:
(A) Employee Orientation.
(B) Education.
(C) Colleges and Universities.
(D) Required by law.
Ans: (A) Employee Orientation.
9. ECGC stands for:
(A) Export Credit Guarantees Company.
(B) Export Credit Guarantee Corporation Limited.
(C) Export Credit Guarantee Company Limited.
(D) Export Credit Guarantee Corporation.
Ans: (D) Export Credit Guarantee Corporation.
10. The Reserve Bank of India (RBI) came into existence legally as on:
(A) 1st April, 1935.
(B) 1st April, 1927.
(C) 1st April, 1947.
(D) 1st April, 1949.
Ans: (A) 1st April, 1935.
11. The concept of Management by Objectives was developed by:
(A) Drucker.
(B) McGregor.
(C) Simon.
(D) Elten Mayo.
Ans: (A) Drucker.
12. Which of the following is referred to as a predecessor to WTO?
(A) GATT.
(B) IMF.
(C) OPEC.
(D) World Bank.
Ans: (A) GATT.
13. Capital structure designing has nothing to do with:
(A) Profitability.
(B) Flexibility.
(C) Corporate Governance.
(D) Liquidity.
Ans: (C) Corporate Governance.
14. Patents, Copyrights and Trademarks are:
(A) Current Assets.
(B) Fixed Assets.
(C) Intangible Assets.
(D) Investment.
Ans: (C) Intangible Assets.
15. By which act government checks restrictive trade?
(A) Industrial Policy Act, 1991.
(B) MRTP Act.
(C) FEMA Act.
(D) None of the above.
Ans: (B) MRTP Act.
16. Which one among the following is relative measure of dispersion?
(A) Mean deviation.
(B) Range.
(C) Coefficient of variation.
(D) Standard deviation.
Ans: (C) Coefficient of variation.
17. Who invented Double Entry system?
(A) F.W. Taylor.
(B) Henry Fayol.
(C) Luca Pacioli.
(D) Maslow A.H.
Ans: (C) Luca Pacioli.
18. The business buyer has to make the fewest decisions when involved in a
(A) Modified rebuy.
(B) Regular buy.
(C) Straight rebuy.
(D) New task.
Ans: (C) Straight rebuy.
19. A Joint Stock Company is managed by the Board of Directors elected by:
(A) Top Management.
(B) Shareholders.
(C) Employees of Company.
(D) None of the above.
Ans: (B) Shareholders.
20. Convertible bond is:
(A) Debt + Warrant.
(B) Debt + Cash.
(C) Debt + Share.
(D) None of the above.
Ans: (C) Debt + Share.
21. An agreement which contains two contracts to buy and sell is called:
(A) Buyback.
(B) Escrow.
(C) Switch Trading.
(D) Contract Manufacturing.
Ans: (A) Buyback.
22. For the purpose of preparation of fund flow statement, fund mean:
(A) Total resources.
(B) Cash/Bank balances.
(C) Current assets.
(D) Working capital.
Ans: (D) Working capital.
23. Copy testing is also known as:
(A) Pre-testing.
(B) Copy writing.
(C) Concurrent testing.
(D) Preview.
Ans: (A) Pre-testing.
24. Which one of the following will not affect the working capital?
(A) Sale of plant and machinery in cash.
(B) Realization of cash from debtors.
(C) Issue of equity shares.
(D) Redemption of debentures.
Ans: (B) Realization of cash from debtors.
25. The managerial grid model of leadership was developed by:
(A) Fiedler.
(B) Hersey and Blanchard.
(C) Tannenbaum and Schmidt.
(D) Blake and Mouton.
Ans: (D) Blake and Mouton.
26. Horizontal job rotation refers to:
(A) Lateral transfer.
(B) Lateral promotion.
(C) Lateral motivation.
(D) All of the above.
Ans: (A) Lateral transfer.
27. A line graph indicates:
(A) Comparison.
(B) Variation.
(C) Range.
(D) All of the above.
Ans: (D) All of the above.
28. The term group equilibrium is related to:
(A) Monopolistic competition.
(B) Oligopoly.
(C) Duopoly.
(D) Perfect competition.
Ans: (A) Monopolistic competition.
29. _______ is simply the use of Electronic means to transfer funds directly from one account to another rather than by cheque or cash.
(A) M-Banking.
(B) O-Banking.
(C) E-Banking.
(D) D-Banking.
Ans: (C) E-Banking.
30. The Industrial Employment (Standing Orders) Act was enacted:
(A) 1950.
(B) 1946.
(C) 1947.
(D) 1960.
Ans: (B) 1946.
31. In ABC Analysis, ‘A’ stands:
(A) High Price’s goods.
(B) Lower quality goods.
(C) High volume goods.
(D) More quality goods.
Ans: (A) High Price’s goods.
32. Break-even means:
(A) Costs are more than the reserve.
(B) Revenue and cost are equal.
(C) Revenue is more than cost.
(D) None of the above.
Ans: (B) Revenue and cost are equal.
33. FEMA signifies:
(A) Free Export Management Act.
(B) Foreign Exchange Management Act.
(C) Foreign Exchange Monitoring Act.
(D) Free Export Marketing Act.
Ans: (B) Foreign Exchange Management Act.
34. _______ are set of interdependent organisations participating in the process of making a product or service available for use or consumption.
(A) Marketing channels.
(B) Marketing terrains.
(C) Communication channels.
(D) Sales territories.
Ans: (A) Marketing channels.
35. Which among the following is not the instrument of monetary policy?
(A) Deficit financing.
(B) Statutory liquidity ratio.
(C) Cash reserve ratio.
(D) Open market operation policy.
Ans: (A) Deficit financing.
36. A reciprocal licensing agreement in which intangible property is transferred between two parties is known as:
(A) non-exclusive licence.
(B) cross-licence.
(C) exclusive licence.
(D) transfer of licence.
Ans: (B) cross-licence.
37. The appropriate ratio for indicating liquidity crisis is:
(A) Operating Ratio.
(B) Sales Turnover Ratio.
(C) Current Ratio.
(D) Acid Test Ratio.
Ans: (D) Acid Test Ratio.
38. Imperfect competition was introduced by:
(A) Marshall.
(B) Chamberlin.
(C) Keynes.
(D) Adam Smith.
Ans: (B) Chamberlin.
39. An example of Fixed Assets is:
(A) Live Stock.
(B) Value Stock.
(C) Income Stock.
(D) All of the above.
Ans: (A) Live Stock.
40. Human resource audit summarize each employee’s skill and:
(A) Abilities.
(B) Property.
(C) Evidence.
(D) Life.
Ans: (A) Abilities.
42. Which among the following is an example of Trade Promotion?
(A) Coupons.
(B) Samples.
(C) Push money.
(D) None of the above.
Ans: (C) Push money.
43. Basically there are _______ parties to a bill of exchange.
(A) Four.
(B) Two.
(C) One.
(D) Three.
Ans: (D) Three.
44. Hawthorne experiment was conducted by:
(A) Elten Mayo.
(B) Henry Fayol.
(C) F.W. Taylor.
(D) P.F. Drucker.
Ans: (A) Elten Mayo.
45. An indifference curve is always:
(A) Vertical straight line.
(B) Convex to the origin.
(C) Concave to the origin.
(D) Horizontal straight line.
Ans: (B) Convex to the origin.
46. t-test is a _______.
(A) Parametric Test.
(B) Non-Parametric Test.
(C) Large Sample Test.
(D) None of the above.
Ans: (A) Parametric Test.
47. The Cadbury Committee on Corporate Governance was set up in:
(A) May 1992.
(B) May 1991.
(C) May 1990.
(D) May 1993.
Ans: (B) May 1991.
48. All the following curves are U-shaped except:
(A) Average Variable Cost Curve.
(B) Average Fix Cost Curve.
(C) Average Cost Curve.
(D) Marginal Cost Curve.
Ans: (B) Average Fix Cost Curve.
49. Equity Theory of work motivation has been developed by:
(A) J. Stacey Adams.
(B) J. Arun Kaul.
(C) R. Thesis.
(D) Dr. L.N. Koli.
Ans: (A) J. Stacey Adams.
50. Which one is not an element of internal environment?
(A) Marketing capabilities.
(B) Operational capabilities.
(C) Money and capital capabilities.
(D) Personal capabilities.
Ans: (C) Money and capital capabilities.
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