September 2016 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. _______ expenditure is concerned with all current expenditure of the Government on administration.
(A) Revenue Expenditure.
(B) Capital Expenditure.
(C) Total Expenditure.
(D) None of the above.
Ans: (A) Revenue Expenditure.
2. The credit of investing the word privatisation goes to the famous author:
(A) Henry Fayol.
(B) Peter F. Drucker.
(C) Abraham Maslow.
(D) Mikhail Gorbachev.
Ans: (B) Peter F. Drucker.
3. The concept of Small Scale Industries was introduced by the _______.
(A) Industrial Policy Resolution 1948.
(B) Industrial Policy Resolution 1956.
(C) Industrial Policy Resolution 1977.
(D) None of the above.
Ans: (C) Industrial Policy Resolution 1977.
4. The present status of Indian Economy is the example of _______.
(A) Capitalist Economy.
(B) Closed Economy.
(C) Mixed Economy.
(D) None of the above.
Ans: (C) Mixed Economy.
5. Match the items of List I with the items of List II and select the correct answer using the codes given below the lists:
|
List I |
List II |
|
(a) Capital Reserve. (b) Reserve Capital. (c) General Reserve. (d) Specific Reserve. |
(1) Uncommitted Reserve. (2) Uncalled share capital. (3) Profit on re-issue of forfeited shares. (4) Sinking Fund. |
Codes:
(A) (a)-(2), (b)-(1), (c)-(3), (d)-(4).
(B) (a)-(1), (b)-(3), (c)-(4), (d)-(2).
(C) (a)-(3), (b)-(2), (c)-(1), (d)-(4)
(D) (a)-(3), (b)-(1), (c)-(4), (d)-(2).
Ans: (C) (a)-(3), (b)-(2), (c)-(1), (d)-(4)
6. Which is correct sequence of the following stages in accounting process?
(1) Posting.
(2) Journalising.
(3) Balancing.
(4) Summarizing.
Select the correct answer from the codes given below:
(A) (4), (1), (2), (3).
(B) (3), (2), (1), (4).
(C) (2), (1), (3), (4).
(D) (1), (3), (4), (2).
Ans: (C) (2), (1), (3), (4).
7. Amount set apart to meet losses due to bad debts is a:
(A) Liquidity.
(B) Assets.
(C) Reserve.
(D) Provision.
Ans: (D) Provision.
8. Costs which are directly dependent on the volume of output or service are called:
(A) Fixed costs.
(B) Variable costs.
(C) Semi-variable costs.
(D) Semi-fixed costs.
Ans: (B) Variable costs.
9. Statement I (S-1): The demand for a commodity refers to the quantity of the commodity demanded at a certain price during any particular period of time.
Statement II (S-II): Contraction of demand is the result of increase in the price of the commodity concerned.
(A) Both S-I and S-II are correct.
(B) Both S-I and S-II are incorrect.
(C) S-I is correct and S-II is incorrect.
(D) S-II is correct and S-I is incorrect.
Ans: (A) Both S-I and S-II are correct.
10. Match the items of List I with the items of List II and select the correct answer using the codes given below the lists:
|
List I |
List II |
|
(a) Administered Price. (b) Parity Pricing. (c) Competitive Price. (d) Discriminating Price. |
(1) Landed cost of imports. (2) Liberalised economy. (3) Public enterprise. (4) Fixed by Government. |
Codes:
(A) (a)-(1), (b)-(2), (c)-(3), (d)-(4).
(B) (a)-(2), (b)-(3), (c)-(4), (d)-(1).
(C) (a)-(3), (b)-(4), (c)-(2), (d)-(1).
(D) (a)-(4), (b)-(2), (c)-(1), (d)-(3).
Ans: (B) (a)-(2), (b)-(3), (c)-(4), (d)-(1).
11. A perfectly competitive market is characterised by:
(A) Very large number of buyers and sellers.
(B) Homogeneous product.
(C) Free-entry and exit of firms.
(D) All of the above.
Ans: (D) All of the above.
12. In a Unimodal and symmetrical distribution, the relationship between averages is like this
(A) Mean > Median > Mode.
(B) Mean < Median < Mode.
(C) Mean = Median = Mode.
(D) Mean < Median > Mode.
Ans: (C) Mean = Median = Mode.
13. Match the items of List I with the items of List II and select the correct answer using the codes given below the lists:
|
List I |
List II |
|
(a) Random sample selection. (b) Arranging data in columns and rows. (c) Measures of central tendency. (d) Data collection. (e) Dividing into homogeneous groups. |
(1) Tabulation. (2) Questionnaire. (3) Lottery method. (4) Analysis of date. (5) Classification. |
Codes:
(A) (a)-(1), (b)-(2), (c)-(3), (d)-(4), (e)-(5).
(B) (a)-(4), (b)-(3), (c)-(2), (d)-(5), (e)-(1).
(C) (a)-(2), (b)-(4), (c)-(1), (d)-(3), (e)-(5).
(D) (a)-(3), (b)-(5), (c)-(4), (d)-(2), (e)-(1).
Ans: Question Number 13 is not considered for evaluation, hence “z” is used.
14. The probability of rejecting the Null Hypothesis, when is it true, is called:
(A) Type-I error.
(B) Type-II error.
(C) Probable error.
(D) Standard error.
Ans: (A) Type-I error.
15. E-marketing is:
(A) Buying and selling of goods and services through internet.
(B) Buying of goods through internet.
(C) Selling of goods through internet.
(D) All of the above.
Ans: (D) All of the above.
16. Match the items of List I with the items of List II and select the correct answer using the codes given below the lists:
|
List I (Techniques of Scientific Management) |
List II (Features) |
|
(a) Standardization and simplification. (b) Scientific task selling. (c) Functional foremanship. (d) Differential place rate plan. |
(1) It is essential to set the standards task which an average worker should be during a working day. (2) Under this, there are two work rates, one is lower and another is higher. (3) The management must carry out work study is standardise and simplify work in order to increase efficiency. (4) Its purpose is to improve the quality of super-vision of workers by employing some specialists. |
Codes:
(A) (a)-(3), (b)-(1), (c)-(4), (d)-(2)
(B) (a)-(4), (b)-(1), (c)-(2), (d)-(3).
(B) (a)-(4), (b)-(3), (c)-(1), (d)-(2).
(C) (a)-(3), (b)-(4), (c)-(1), (d)-(2).
Ans: (A) (a)-(3), (b)-(1), (c)-(4), (d)-(2)
17. In an electrical goods manufacturing company, there are four main activities Marketing, Production, Finance and Personnel. The general manager is planning to structure the organisation. Which type of organisation structure should be adopted?
(A) Formal organisation structure.
(B) Functional organisation structure.
(C) Informal organisation structure.
(D) Divisional organisation structure.
Ans: (B) Functional organisation structure.
18. Which of the following statements is correct?
(A) Behavioural theories of Leadership are also known as transactional theories.
(B) Situational theories of Leadership are based on the belief that great leaders are made not born.
(C) Management theories of Leadership focused on the role of supervision, organisation and group performance.
(D) None of the above.
Ans: (C) Management theories of Leadership focused on the role of supervision, organisation and group performance.
19. Role of Marketing has become vital because of changes and increased _______.
(A) Technology.
(B) Competition.
(C) Both (A) and (B).
(D) None of the above.
Ans: (C) Both (A) and (B).
20. Advertising creates _______ among customers.
(A) Awareness.
(B) Clearity.
(C) Confusion.
(D) Positive effects.
Ans: (A) Awareness.
21. Price of a product affects its _______
(A) Demand.
(B) Production.
(C) Customer.
(D) All of the above.
Ans: (A) Demand.
22. Capital Budgeting is also known as _______.
(A) Investment Decision-making.
(B) Capital Expenditure Decision.
(C) Planning Capital Expenditure.
(D) All of the above.
Ans: (D) All of the above.
23. Which of the following terms is used to represent the proportionate relationship between debt and equity?
(A) Cost of Capital.
(B) Capital Budgeting.
(C) Assets Structure.
(D) Capital Structure.
Ans: (D) Capital Structure.
24. Which one is not an important objective of Financial Management?
(A) Profit Maximisation.
(B) Wealth Maximisation.
(C) Value Maximisation.
(D) Maximisation of Social Benefits.
Ans: (D) Maximisation of Social Benefits.
25. What are the benefits of Human resource planning?
(A) Expand the personal management information base to assist other personal activities and other organisational
units.
(B) Make major demands on local labour markets successfully.
(C) Coordinate different personal management programmes such as affirmative action plans and living needs.
(D) All of the above.
Ans: (D) All of the above.
26. Productivity means:
(A) an act of increasing the knowledge and skills of an employee for doing a particular job.
(B) using the minimum amount of resources needed to produce goods and services.
(C) one’s skills, abilities in meeting the needs of the job which one is holding currently.
(D) the ratio of an organisation’s output to its inputs.
Ans: (D) the ratio of an organisation’s output to its inputs.
27. A scheme for workers participation in industry at the shop floor and plant levels was introduced in:
(A) October, 1970.
(B) October, 1975.
(C) October, 1985.
(D) October, 1978.
Ans: (B) October, 1975.
28. International Bank for Reconstruction and Development is:
(A) Exim Bank.
(B) IMF.
(C) World Bank.
(D) Ministry of Corporate Affairs.
Ans: (C) World Bank.
29. Bank Rate is determined by:
(A) Ministry of Finance.
(B) State Bank of India.
(C) Reserve Bank of India.
(D) Ministry of Corporate Affairs.
Ans: (C) Reserve Bank of India.
30. Credit Policy of Government of India is declared by:
(A) State Bank of India.
(B) IMF.
(C) Ministry of Finance.
(D) RBI.
Ans: (D) RBI.
31. _______ is the promoter of CRISIL.
(A) ICICI.
(B) IFCI.
(C) IDBI.
(D) None of the above.
Ans: (A) ICICI.
32. Arbitrage takes advantage of:
(A) Different Exchange rates in same market.
(B) Same Exchange rate in different market.
(C) Different Exchange rates in different market.
(D) All of the above.
Ans: (C) Different Exchange rates in different market.
33. Geometric firm is a MNC that maintains a balance between:
(A) Home market and local market oriented policies.
(B) Domestic market and regional market-oriented policies.
(C) Home market and host market-oriented policies.
(D) Local market, domestic market and regional market-oriented policies.
Ans: (C) Home market and host market-oriented policies.
34. What is Euro-IV?
(A) European Currency.
(B) British Currency.
(C) European Football Festival.
(D) Pollution Control Norms.
Ans: (D) Pollution Control Norms.
35. Sectoral disequilibrium:
(A) is a type of disequilibrium in the balance of payment.
(B) is not a type of disequilibrium in the balance of payment.
(C) is a type of cyclical disequilibrium in the balance of payment.
(D) is a type of structural disequilibrium in the balance of payment.
Ans: (B) is not a type of disequilibrium in the balance of payment.
36. Indian Accounting Standard (AS 3) is related with:
(A) Depreciation Accounting.
(B) Segment Reporting.
(C) Cash Flow Statement.
(D) Disclosure of Accounting Policies.
Ans: (C) Cash Flow Statement.
37. Under the CCA method, the difference between replacement cost of assets and historical cost of assets is known as:
(A) Realised Holding Gain.
(B) Unrealised Holding Gain.
(C) Realised Profit.
(D) Unrealised Profit.
Ans: (B) Unrealised Holding Gain.
38. Cash flow statement is based on _______ of accounting.
(A) Accrued Basis.
(B) Cash Basis.
(C) Both (A) and (B)
(D) Working Capital Basis.
Ans: (B) Cash Basis.
39. Distributional activities involve decisions regarding:
(A) Channels of distribution.
(B) Decision-making.
(C) Both (A) and (B).
(D) None of the above.
Ans: (A) Channels of distribution.
40. Informing buyers of new brand and new package is the _______ of sales promotion.
(A) Objective.
(B) Method.
(C) Application.
(D) None of the above.
Ans: (A) Objective.
41. Pricing activities is _______ of product price.
(A) Fixation.
(B) Taxation.
(C) Both (A) and (B).
(D) None of the above.
Ans: (A) Fixation.
42. Human resource is the most important _______ in an organisation.
(A) Asset.
(B) Liability.
(C) Capital.
(D) None of the above.
Ans: (A) Asset.
43. Evaluation by boss, peers and subordinates is called:
(A) Subjective appraisal.
(B) 360 degree appraisal.
(C) Critical incident appraisal.
(D) None of the above.
Ans: (B) 360 degree appraisal.
44. Under the 40B of Factories Act, 1948 safety officer is to be appointed in a factory where _______ or more employees are working.
(A) 1,000.
(B) 500.
(C) 250.
(D) 1,500.
Ans: (A) 1,000.
45. Ratio of a country’s export prices to its import prices is called:
(A) Relative Price Ratio.
(B) Trade Ratio.
(C) Terms of Trade.
(D) Benefit Ratio.
Ans: (C) Terms of Trade.
46. Physical delivery of Foreign Exchange has to take place in case of:
(A) Forward Market.
(B) Spot Market.
(C) Future Market.
(D) Options Market.
Ans: (B) Spot Market.
47. Exchange rate relate to demand and supply of:
(A) Foreign goods.
(B) Foreign money.
(C) National money.
(D) National goods in relations to foreign goods.
Ans: (C) National money.
48. Deduction under Section 80 JJAA is available in the following cases:
(A) Indian Company.
(B) Foreign Company.
(C) Limited Liability Partnership.
(D) All of the above.
Ans: (A) Indian Company.
49. Minimum Alternate Tax is applicable in the following cases:
(A) Limited Liability Partnership.
(B) Partnership Firm.
(C) Cooperative Society.
(D) Listed Companies.
Ans: (D) Listed Companies.
50. All methods by which tax liability is illegally avoided is termed as:
(A) Tax Avoidance.
(B) Tax Planning.
(C) Tax Evasion.
(D) Tax Management.
Ans: (C) Tax Evasion.
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