SLET NE Commerce Solved Paper 2012 [Paper II] - Dynamic Tutorials & Services

SLET NE Commerce Solved Paper 2012 (Paper II)

Assam SLET Solved Question Paper Commerce

[Time: 1 hour]

[Maximum Marks: 100]

Note: This paper contains fifty (50) objective type questions, each question carrying two (02) marks. All the questions are compulsory.

In this post you will get SLET NE Commerce Solved Paper 2012 with Proper Explanation. SLET NE General Paper 1 Solutions will also be available very soon on our website.

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1. Consider the following statement and find out the correct answer using codes:

A company comes into existance when it gets:

(a) Certificate of incorporation.

(b) Certificate of commencement of business.

(d) Statutory meeting held.

Codes:

(A) (a)-True, (b)-True, (c)-False, (d)-False.

(B) (a)-True, (b)-False, (c)-False, (d)-False.

(D) (a)-False, (b)-False, (c)-True, (d)-True.

Ans: (A) (a)-True, (b)-True, (c)-False, (d)-False.

2. The following question consists of two statements, one labeled the Assertion (Ass) and the other labeled Reason ®. You are to examine these two statements and to select your answer to the question using the codes given below.

Assertion (Ass): Social responsibility of business is an idea that cannot be put into practice by the business.

Reason (R): There is no norm to measure the extent of responsibility towards each segment of the society.

Codes:

(A) Both Ass and R are true and R is the correct explanation of Ass.

(B) Both Ass and R are true but R is not the correct explanation of Ass.

(D) Ass is false but R is true.

Ans:(B) Both Ass and R are true but R is not the correct explanation of Ass.

3. The following question consists of two statements, one labeled the Assertion (Ass) and the other labeled Reason (R). You are to examine these two statements and to select your answer to the question using the codes given below.

Assertion (Ass): Now a days it is obligatory on the part of companies to disclose in their Annual Reports work done for the benefits of the society.

Reason (R): Annual Reports are used by members of society in one capacity or the other.

Codes:

(A) Both Ass and R are true and R is the correct explanation of Ass.

(B) Both Ass and R are true but R is not the correct explanation of Ass.

(D) Ass is false, but R is true.

Ans: (C) Ass is true, but R is false.

4. Writing off the expired cost of an intangible asset is called

(A) Capitalisation.

(B) Depreciation.

(D) Depletion.

Ans:(C) Amortisation.

5. Match List I with List II and select the correct match by using the codes given below the lists:

List I

List II

(1) Mutual fund.

(2) Public issue of capital.

(3) Forward trading.

(4) Treasury bill.

(a) Asset Management company.

(b) Money market.

(d) Stock exchange.

Codes:

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

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

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

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

[Hint: Mutual Funds are managed by Asset Management Company. Treasury bill is a money market Instrument]

6. Health beverage company, Mangaldai spent the following amounts on the import and installation of a machine:

Rs. 50,000 = price of the machine.

Rs. 5,000 = freight.

Rs. 1,500 = insurance premium.

Rs. 6,000 = replacement of a part damaged in transit not covered under insurance policy.

Based on the above data, the amount of capital expenditure would be:

(A) Rs. 50,000.

(B) Rs. 56,500.

(D) Rs. 51,500.

Ans:(B) Rs. 56,500.

[All incidental expenses incurred for purchase of an assets such as freigh and insurance premium till its installation has to be debited as capital expenditure.

Accordingly the below items are to be considered as cost of machine: Price of machine + Freight + Insurance premium.

Rs.6000 spent on replacement of a part damaged in transit not covered under insurance policy is an item of repair & maintenance cost. ]

7. Match the items in List I with the items in List II.

List I

List II

(a) Rs. 10,000/- spent on extension of building debited to Repairs Account.

(b) Return inward book is under cast by Rs. 3,000/- and

Purchase book is overcast by Rs. 3,000/-

(d) A Sale of Rs. 5,500/- has not been recorded.

(1) Compensating Error.

(2) Errors of Principle.

(3) Errors of Commission.

(4) Errors of Omission.

Codes:

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

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

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

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

8. Consider the following statements and find out the correct answer from the codes.

Secret reserves serve the purpose of

(a) Enabling the directors to tide over unfavourable circumstances.

(b) Meeting exceptional losses.

(d) Acquiring fixed assets.

Codes:

(A) (a)-True, (b)-False, (c)-False, (d)-False.

(B) (a)-True, (b)-True, (c)-False, (d)-False.

(D) (a)-False, (b)-False, (c)-True, (d)-False.

Ans:(B) (a)-True, (b)-True, (c)-False, (d)-False.

9. Given below are two statements viz. Assertion (Ass) and Reason (R). Examine the statements and select the correct answer code:

Assertion (Ass): Depreciation amount is added back to net profit for calculating funds from operations in preparing a funds flow statement.

Reason (R): Depreciation is an item of cost but not funds.

Codes:

(A) Both Ass and R are correct and R is a correct explanation of Ass.

(B) Both Ass and R are correct but R is not a correct explanation of Ass.

(D) Ass is incorrect but R is correct.

Ans: (B) Both Ass and R are correct but R is not a correct explanation of Ass.

10. A firm will close down in short run if average revenue is less than:

(A) Average cost.

(B) Marginal cost.

(D) None of the above.

Ans: (C) Average variable cost.

11. Opportunity cost refers to:

(A) A bargain price for a factor of production.

(B) Average variable cost.

(D) Benefits forgone by pursuing one course of action rather than another.

Ans:(D) Benefits forgone by pursuing one course of action rather than another.

12. There are two statements: Assertion (Ass) and Reason (R). You are required to examine these two statements and to select the correct answer using codes below:

Assertion (Ass): Demand curve is downward sloping.

Reason (R): Supply curve is upward sloping.

Codes:

(A) Both Ass and R are true and R is the correct explanation of Ass.

(B) Both Ass and R are true but R is not the correct explanation of Ass.

(D) Ass is false but R is true.

Ans:(A) Both Ass and R are true and R is the correct explanation of Ass. Hint Below

13. Match List I with List II and select the correct match code from A, B, C and D.

List I

List II

(1) Average Revenue (AR) = Marginal Revenue (MR).

(2) AR > MR.

(3) MR = 0.

(4) AR/[AR-MR]

(a) Price elasticity of demand.

(b) Perfect competition.

(d) Total Revenue is maximum.

Codes:

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

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

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

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

[Hint: In perfect Competition, AR=MR. MR is 0 when TR is maxium.

14. In case of oligopoly, numbers of firms are:

(A) Large.

(B) Infinite.

(D) Few.

Ans:(D) Few.

[Hint: Perfect Competition = Large Number of buyers and sellers; Monopoly = One Seller; Monopolistic Competition = Large number of sellers; oligopoly = Few sellers; Duopoly = Two Sellers]

15.Which of the following is true?

(A) Chi-square test is a test of goodness of fit.

(B) Chi-square test is a test of independence.

(D) All of the above.

Ans:(D) All of the above.

16. There are two statements ‘X’ and ‘Y’.

Statement X: The tool correlation is used to measure the degree of relationship between two phenomena when it can be measured quantitatively.

Statement Y: The method of association of attributes is used when the degree of relationship between two phenomena cannot be measured quantitatively.

State your Answer as

Codes:

(A) If both X and Y are correct.

(B) If both X and Y are not correct.

(D) If Y is correct but X is not correct.

Ans:(A) If both X and Y are correct.

[Hint: In the case of correlation analysis, we study the relationship between two variables, which we can measure quantitatively.

Similarly, in the case of association we study the relationship between two attributes, which are not quantitatively measurable.]

17. For two attributes, total frequencies are:

(A) 2.

(B) 4.

(D) 9.

Ans:(B) 4.

[Hint: An attribute is a quality or a characteristic which cannot be measured but which can be marked by their presence or absence.

In dichotomous classification of the units of the given population with respect to n attributes, the classes of the highest order are known as the ultimate classes and their corresponding frequencies are known as the ultimate class frequencies.

For n attributes, ultimate class frequencies are obtained by 2ⁿ. Here n is the number of attributes.]

18. There are two statements numbered as I and II:

Statement I: For a normal distribution the coefficient of skewness is zero and the coefficient of kurtosis is also zero.

Statement II: If the correlation coefficient between two variables is zero then the two variables are independent.

Examine the statements and select the answers from the choices given as below:

Codes:

(A) Statement I is correct and statement II is not correct.

(B) Statement I is not correct and statement II is correct.

(D) Both the statements I and II are not correct.

Ans:(B) Statement I is not correct and statement II is correct.

[Hint: Kurtosis is a measure of the “tailedness” of the probability distribution. A standard normal distribution has kurtosis of 3 and is recognized as mesokurtic]

19. Choose the correct alternative:

Level of significance is the probability of:

(A) Not committing error.

(B) Type I error.

(D) None of the above.

Ans:(B) Type I error.

[Hint: The probability of making a Type I error in hypothesis testing is known as α (Alpha) and is known as the level of significance of the test.]

20. 360 degree method relates to:

(A) Performed Appraisal.

(B) Organisational Climate.

(D) Retrenchment Method.

Ans:(A) Performed Appraisal.

21. Henry Fayol is famous for:

(A) Scientific Management.

(B) Rationalisation.

(D) Principles of Management.

Ans:(D) Principles of Management.

22. Corporate governance and management responsibility for the listed companies in India has been enforced through the mechanism of:

(A) Articles of Association of the company.

(B) Direction issued by Institute of Chartered Accountants of India (ICAI).

(D) Sec 60-B of the Companies Act stipulated by Ministry of Corporate Affairs (MCA).

Ans:(C) Clause 49 of the Listing Agreement stipulated by SEBI.

23. Match List I against List II and select the correct answer code from the codes given.

List I

List II

(1) F.W. Taylor.

(2) Henry Fayol.

(3) Maslow.

(4) Mc Gregor.

(a) Theory of Motivation.

(b) Theory of X and Theory of Y.

(d) Scientific Management.

Codes:

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

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

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

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

24. There are two statements: Assertion (Ass) and Reason (R). You are required to examine these two carefully and select the Answer code from A-D as follows:

Assertion (Ass): Most of the people in an organisation must be coerced, controlled, directed or threatened with punishment to get them to work towards organisational goal.

Reason (R): The average human has an inherent dislike of work and will avoid if he can.

Codes:

(A) Both Ass and R are true and R is the correct explanation of Ass.

(B) Both Ass and R are true but R is not the correct explanation of Ass.

(D) Ass is false but R is true.

Ans:(D) Ass is false but R is true.

25. In ‘line and staff’ organisation, the authority lies with:

(A) Line.

(B) Staff.

(D) Neither Line nor Staff.

Ans:(A) Line.

26. Match the items in List I with the items on List II.

List I

List II

(a) Skimming price.

(b) Premium pricing.

(d) Penetration pricing.

(1) Pricing at low level to get into the market.

(2) Artificially high price to give an impression of good quality.

(3) Aggressive pricing to drive out competitors.

(4) Pricing to get a specific return.

(5) Charging higher price at initial stage and lowering the price gradually.

Codes:

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

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

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

Ans:(C) (a)-(5), (b)-(2), (c)-(3), (d)-(1).

[Hint:

Penetration pricing refers to setting a low initial price for a new product or service to gain customer’s attention.

Skimming pricing refers to a pricing strategy where a firm charges highest initial price for a new product and subsequently lower the prices after entry of competitors.

Predatory pricing strategy is an unfair pricing strategy where a firm charge very low price to eliminate competitors.

Premium pricing refers to the practice of setting an arificially higher price than the competitors to give the impression that a product must have unusually high quality.]

27. Charging different prices to different customer is known as:

(A) Price elasticity.

(B) Price discrimination.

(D) Price rationalisation.

Ans:(B) Price discrimination.

28. Market segmentation based on age of the consumer group, sex, family size, race, religion, community, language, occupation, educational level, social level and income level comes under:

(A) Geographic segmentation.

(B) Demographic segmentation.

(D) Characteristics and behaviour segmentation.

Ans:(B) Demographic segmentation.

[Hint: Geographical Factors: On the basis of geographical factors, market may be classified as state-wise, region-wise and nation-wise.

Demographic Factors: Market is classified on the basis of population, using ages, income, sex, etc. as indicators.

Psychological factors: In psychographic segmentation, elements like personality traits, attitude lifestyle and value system form the base.

Behavior Factors: Market is classified on the basis of attitude of consumers and special occasions.]

29. The pricing method in which the selling price of the product is fixed by adding a margin to the cost price is referred to as:

(A) Absorption cost pricing.

(B) Marginal pricing.

(D) Tender pricing.

Ans:(C) Mark-up pricing.

30. Which of the following is not one of the steps in the net present value method (NPV)?

(A) Identify the amount and timing of the cash flows.

(B) Discount of cash flows.

(D) Compare the discount cash flows to zero.

Ans:(D) Compare the discount cash flows to zero.

31. Which of the following is not a correct statement in the context of operating leverage?

(A) Operating leverage results when fluctuations in sales are accompanied by disproportionate fluctuations in operating profit.

(B) Operating leverage results in the absence of operating fixed cost of the firm.

(D) At a given volume of activity it is measured by = > 1.

Ans:(B) Operating leverage results in the absence of operating fixed cost of the firm.

[Hint: Operating leverage occurs when a company has fixed costs that must be met regardless of sales volume. ]

32. Match the following items of List I against items of List II.

List I

List II

(1) Net Operating Income.

(2) Net Present Value.

(3) Stochastic model.

(4) Residual Theory.

(a) Capital Budgeting.

(b) Cash management.

(d) Dividend Policy.

Codes:

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

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

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

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

33. Examine the statements given as I and II.

I: Operating leverage increases with fixed costs.

II: A firm will have higher operating leverages if the total cost have higher percentage of fixed cost.

Which of the following is correct?

Codes:

(A) I.

(B) II.

(D) Neither I nor II.

Ans:(C) I and II.

34. The concept of cost of capital is very important from which point of view?

(A) Capital Expenditure decisions.

(B) Capital Structure decisions.

(D) Both (A) and (B).

Ans:(A) Capital Expenditure decisions.

35. In the Last in First Out (LIFO) method the closing stock is valued at –

(A) A price which is paid for the last consignment.

(B) A price which is paid for the earlier consignment.

(D) The prevailing market price at the time of valuation.

Ans:(B) A price which is paid for the earlier consignment.

36. Statement

(a): The All India Trade Union Congress was established in 1920.

(b): The Indian National Trade Union Congress was established in 1948.

Codes:

(A) Statement (a) is true but statement (b) is untrue.

(B) Statement (b) is true but statement (a) is untrue.

(D) Both statements (a) and (b) are untrue.

Ans:(A) Statement (a) is true but statement (b) is untrue.

[Hint: The Indian National Trade Union Congress was established in 3 May 1947]

37. Which one of the pairs is correctly matched:

(A) Compensation : Career Planning.

(B) Manpower planning : Job evaluation.

(D) Morale : Promotion.

Ans:(D) Morale : Promotion.

38. The following question consists of two statements, one labeled the Assertion (Ass) and the other labeled Reason (R). You are to examine these two statements and select your answer to the question from the codes given below.

Assertion (Ass): With the introduction of modern technology in industries, human resource management has assumed more importance.

Reason (R): The level of modernisation of industrial technology is not the same in every country.

Codes:

(A) Both Ass and R are true and R is the correct explanation of Ass.

(B) Both Ass and R are true but R is not the correct explanation of Ass.

(D) Ass is false but R is true.

Ans:(B) Both Ass and R are true but R is not the correct explanation of Ass.

39. Which of the following job concept is not related to job analysis?

(A) Job description.

(B) Job security.

(D) Job specification.

Ans:(B) Job security.

40. Payment of Bonus Act came into force in the year:

(A) 1960.

(B) 1965.

(D) 1948.

Ans:(B) 1965.

41. Match the following items in List I with the items in List II.

List I

List II

(a) SEBI Act.

(b) RBI Act.

(d) SARFAESI Act.

(e) Banking Regulation Act.

(1) 2005.

(2) 1949.

(3) 2002.

(4) 1992.

(5) 1934.

Codes:

(A) (a)-(4), (b)-(5), (c)-(3), (d)-(1), (e)-(2).

(B) (a)-(4), (b)-(1), (c)-(2), (d)-(5), (e)-(3).

(D) (a)-(4), (b)-(5), (c)-(1), (d)-(3), (e)-(2).

Ans:(D) (a)-(4), (b)-(5), (c)-(1), (d)-(3), (e)-(2).

42. NABARD was set up in the year:

(A) 1980.

(B) 1981.

(D) 1983.

43. Which one of the following is the inventor of ATM in banking service?

(A) Mr. Gamesplan.

(B) Mr. William Greensplan.

(D) James Wilson.

Ans:(C) John Sephard Beron.

44. Section 138 of the Negotiable Instruments Act 1988 states that drawer of a cheque is liable to be punished if the cheque is bounced for:

(A) Not crossing.

(B) Alteration in figures.

(D) Insufficient fund.

Ans:(D) Insufficient fund.

45. There are two statements given below as I and II.

Statement (I): A person can open as current account for his minor son.

Statement (II): An illiterate person can open a savings account with cheque facility.

Codes:

(A) I is correct but II is not correct.

(B) I is not correct but II is correct.

(D) Both I and II are not correct.

Ans:(A) I is correct but II is not correct.

46. Match List 1 with List 2 and select the correct answer by using the codes given below the lists.

List I

List II

(1) Comparative cost.

(2) World Bank.

(3) WTO.

(4) Bill of lading.

(a) Shipping document.

(b) Basis of international trade.

(d) General Agreement on Trade in Services.

Codes:

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

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

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

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

47. Since 1^st January 1995, the Uruguay Round Negotiation resulted in the embodiment of:

(A) IMF.

(B) WTO.

(D) General Agreement on Trade in Services (GATS).

Ans:(B) WTO.

[Hint: The Uruguay Round Negotiation resulted in the embodiment of the World Trade Organization, with GATT remaining as an integral part of the WTO agreements.]

48. The World Trade Organisation (WTO) was set up following the:

(A) Uruguay Round Negotiation.

(B) Brettonwoods Conference.

(D) Washington Consensus.

Ans:(A) Uruguay Round Negotiation.

49. Assertion (Ass): Transfer pricing refers to the internal price at which goods and services are transferred from one division to another division within the same company usually an MNC.

Reason (R): A great deal of intra-firm buying and selling occurs in decentralised firm for which it can be used as a measure of divisional performance and often it is followed by under-invoicing or over-invoicing as per the requirement.

Examine the above two statements and select the most appropriate answer from the codes:

Codes:

(A) Both Ass and R are correct but R is not a correct explanation of Ass.

(B) Both Ass and R are correct and R is a correct explanation of Ass.

(D) Ass is incorrect but R is correct.

Ans:(C) Ass is correct but R is not correct.

50. Which of the following is not true with regard to a normal distribution?

(A) The normal curve is asymmetrical.

(B) There is one maximum point of normal curve.

(D) None of the above.

Ans:(A) The normal curve is asymmetrical.

[Hint: Features of Normal Distribution or Normal Curve:

1. A normal distribution curve is unimodal ( it has only one mode).

2. There is one maximum point of normal curve which is known as Mean.

3. Normal Curve is symmetrical.

4. There is one maximum point of normal curve.

5. Mean, Median and Mode are equal.

6. Normal Distribution has two parameters -Mean and SD.]

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