SLET NE Commerce Solved Paper 2018 (Paper II)
Assam SLET Solved Question Paper Commerce
Based on Memory and Adjusted As per New Syllabus
[Time: 2 hours; Maximum Marks: 200]
Note: This paper contains Hundred (100) 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 2018Â with Proper Explanation. SLET NE General Paper 1 Solutions will also be available very soon on our website.
Questions in this post are based on memory which is submitted by various online readers. Reference of Assam SLET Exam books are also taken which compiling this solutions. This Solved Paper is Adjusted as per Assam SLET Commerce syllabus for 2023 exam.
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Assam SLET (SLET NE) Commerce Solved Question Paper 2023
1. Which of the following is not a member of SAARC?
a) Afghanistan.
b) Nepal.
c) Maldives.
d) Mauritius.
Ans: d) Mauritius.
2. With regard to WTO, subsidies are covered in two separate economic law agreements. Which are they?
a) The Reform Treaty and the Treaty of Rome.
b) The NAFTA and the Organisation of American States of Charter.
c) The IMF’s Article of Agreement and the European Central Bank’s Statute.
d) The GATT and the Agreement of Subsidies and Countervailing Measures.
Ans: d) The GATT and the Agreement of Subsidies and Countervailing Measures.
3. For the following statements of Assertion (A) and Reason (R) select the correct code:
Assertion (A): Banks globally are facing more challenges now, and macro sustainability is a necessity but not sufficient for sustainable economic growth.
Reason (R): Putting regulation in place is only one part and their implementation is equally important for achieving growth and sustainability.
Codes:
a) Both (A) and (R) are true and (R) is the correct explanation of (A).
b) Both (A) and (R) are true but (R) is not the correct explanation of (A).
c) (A) is true and (R) is false.
d) (A) is false and (R) is true.
Ans: a) Both (A) and (R) are true and (R) is the correct explanation of (A).
4. Match factors of Business Environment in List-I with their respective classification in List-II and select correct answer using codes given below the Lists.
|
List-I |
List-II |
|
(a) Stakeholders. (b) Marketing Intermediaries. (c) Balance of Payment Situation. (d) Demographic Factors. |
(1) Non-Economic Environment. (2) Macro-Economic Environment. (3) Micro-Economic Environment. (4) Internal Environment. |
Codes:
a) (a)-(1) (b)-(2) (c)-(4) (d)-(3).
b) (a)-(1) (b)-(3) (c)-(4) (d)-(2).
c) (a)-(3) (b)-(1) (c)-(2) (d)-(4).
d) (a)-(3) (b)-(2) (c)-(1) (d)-(4).
Ans: b) (a)-(1) (b)-(3) (c)-(4) (d)-(2).
5. Current account balance refers to the net flow between home country and foreign country of goods, service, income and
a) taxes.
b) valuables.
c) gifts.
d) claims.
Ans: c) gifts.
6. Statement (A): In the context of globalisation, the most important challenges facing India is to boost exports.
Reason (R): It may increase the country’s growth rate.
a) Both (A) and (R) are true and (R) is the correct explanation of (A).
b) Both (A) and (R) are true and (R) is the incorrect explanation of (A).
c) (A) is true but (R) is false.
d) (A) is false but (R) is true.
Ans: a) Both (A) and (R) are true and (R) is the correct explanation of (A).
7. Possible impact of WTO on various aspects of the Indian economy:
(1) Quantitative restriction will be allowed
(2) Second hand cars will be imported
(3) There will be dumping of Chinese goods
(4) Increase in population
(5) Child labour exploitation
(6) Unemployment will increase
Which combination is appropriate?
a) (1), (2) and (3).
b) (3), (4) and (5).
c) (2), (3) and (6).
d) (4), (5) and (6).
Ans: c) (2), (3) and (6).
8. Internal environment of a business includes all of the following except
a) Company culture.
b) Customers.
c) Patents and trade secrets.
d) Company image.
Ans: b) Customers.
9. Balance of payment includes components:
a) Current Account, Capital Account, Unilateral Payments Account, Official Settlement Accounts.
b) Revenue Account, P&L A/c, Capital Account, Official Account.
c) Trade Account, Activity Account, Revenue Account and Currency Account.
d) Forex Account, Trade Account, Funds Accounts.
Ans: a) Current Account, Capital Account, Unilateral Payments Account, Official Settlement Accounts.
10. Which one is the main objective of fiscal policy in India?
a) To increase liquidity in the economy.
b) To promote price stability.
c) To minimise the inequalities of income and wealth.
d) To promote employment opportunities.
Ans: a) To increase liquidity in the economy.
11. Which of the following statements related to Contribution Analysis are true?
(1) If contribution is zero, there is loss equal to fixed costs.
(2) If contribution is negative, loss is less than fixed costs.
(3) If contribution is positive and more than fixed cost, there will be profit.
(4) If contribution is positive and less than fixed cost, there will be profit.
a) Statements (1) and (2).
b) Statements (2) and (3).
c) Statements (1) and (3).
d) Statements (1) and (4).
Ans: c) Statements (1) and (3).
12. A firm’s monthly cost of production is Rs. 1,46,000 at an output level of 8000 units. If it achieves an output level of 12000 units, it will incur production cost of Rs. 1,86,000. Cost of production for 15000 units is
a) Rs. 2,16,000.
b) Rs. 66,000.
c) Rs. 2,00,000.
d) Rs. 2,20,000.
Ans: a) Rs. 2,16,000.
13. Which of the following is not a contingent liability?
a) Uncalled capital on partly paid up shares.
b) Debts included in sundry debtors which are doubtful in nature.
c) Claims against the company not acknowledged as debt.
d) Liability on bills receivable previously discounted.
Ans: b) Debts included in sundry debtors which are doubtful in nature.
14. If goods worth Rs. 3,210 returned to a supplier is wrongly entered in the sales return book as Rs. 2,310
a) Gross profit will increase by Rs. 6,420.
b) Gross profit will decrease by Rs. 5,500.
c) Gross profit will increase by Rs. 5,520.
d) Gross profit will decrease by Rs. 5,520.
Ans: d) Gross profit will decrease by Rs. 5,520.
15. If debentures are issued at par and redeemable at a premium, the journal entry at the time of issue will be
a) Debit Bank A/c and Credit Debentures A/c.
b) Debit Bank A/c, Credit Debentures A/c and Premium on redemption of debentures A/c.
c) Debit Bank A/c and Loss on issue of debentures A/c, Credit Debentures A/c and Premium on redemption of debentures A/c.
d) Debit Bank A/c and Loss on issue of debentures A/c, Credit Debentures A/c.
Ans: c) Debit Bank A/c and Loss on issue of debentures A/c, Credit Debentures A/c and Premium on redemption of debentures A/c.
16. Profit on re-issue of forfeited shares is transferred to
a) Profit and loss Account.
b) Share Capital Account.
c) Capital Reserve Account.
d) Reserve Capital Account.
Ans: c) Capital Reserve Account.
17. Current ratio of a Company is 2: 1 and Working Capital is Rs. 1,00,000. Current Assets of the Company is
a) Rs. 2,00,000.
b) Rs. 1,00,000.
c) Rs. 3,00,000.
d) Rs. 66,667.
Ans: a) Rs. 2,00,000.
18. When a Company operates at a Break-even point, then its contribution is equal to
a) Net Profit.
b) Fixed Cost.
c) Variable Cost.
d) Net Profit + Fixed Cost.
Ans: b) Fixed Cost.
19. ‘Closing stock is to be valued at cost or market price whichever is lower’ is an example of application
a) Doctrine of Conservatism.
b) Matching Concept.
c) Double Entry Principle.
d) Materiality Concept.
Ans: a) Doctrine of Conservatism.
20. The auditor has noticed existence of recurring losses on sale of fixed assets. This indicates that
a) depreciation charges are insufficient.
b) policy of sale or disposal of fixed assets needs to be reviewed.
c) the sale of assets has not been properly authorised.
d) there are accounting errors.
Ans: a) depreciation charges are insufficient.
21. Elasticity of demand for necessities is
a) Infinite.
b) Equal to zero.
c) More than one.
d) Less than one.
Ans: d) Less than one.
22. Price discrimination is possible and profitable when different markets have
a) Different elasticity of demand.
b) Inelastic demand.
c) Same elasticity of demand.
d) Infinite elasticity of demand.
Ans: a) Different elasticity of demand.
23. A seller can sell additional quantity of his product without reducing the price in
a) Monopoly market.
b) Oligopoly market.
c) Perfectly competitive market.
d) Monopolistic market.
Ans: c) Perfectly competitive market.
24. An example of derived demand is
a) Milk.
b) Money.
c) Manufactured goods.
d) Fertilizers.
Ans: b) Money.
25. When marginal utility is negative, total utility
a) increases.
b) is negative.
c) decreases.
d) is zero.
Ans: c) decreases.
26. To determine whether two goods are substitutes or complements an economist would estimate the
a) Price elasticity of demand.
b) Income elasticity of demand.
c) Cross elasticity of demand.
d) Point elasticity of demand.
Ans: c) Cross elasticity of demand.
27. Assertion (A): Giffen paradox rarely occurs in the real world.
Reasoning (R): Inferior goods are narrowly defined for which suitable substitutes are available.
Codes:
a) Both (A) and (R) are incorrect.
b) (A) is correct and (R) is incorrect.
c) Both (A) and (R) are correct.
d) (A) is incorrect and (R) is correct.
Ans: b) (A) is correct and (R) is incorrect.
28. Match the following:
|
List – I |
List – II |
|
(a) Perfect competition. (b) Pure monopoly. (c) Monopolistic competition. (d) Oligopoly. |
(1) No substitutes.  (2) Homogenous. (3) Price rigidity. (4) Product differentiation. |
Codes:
a) (a)-(2), (b)-(1), (c)-(4), (d)-(3).
b) (a)-(1), (b)-(2), (c)-(3), (d)-(4).
c) (a)-(2), (b)-(3), (c)-(4), (d)-(1).
d) (a)-(3), (b)-(2), (c)-(4), (d)-(1).
Ans: a) (a)-(2), (b)-(1), (c)-(4), (d)-(3).
30. Statement (1): Perfect competition is a myth; monopolistic competition is fact of life.
Statement (2): Under perfect competition, products are homogeneous; in monopolistic competition, products are differentiated.
Codes:
a) (1) is correct, (2) is incorrect.
b) (1) is incorrect, (2) is correct.
c) Both (1) and (2) are incorrect.
d) Both (1) and (2) are correct.
Ans: d) Both (1) and (2) are correct.
31. Match List – I with List – II:
|
List – I |
List – II |
|
(a) Financial Leverage. (b) Quick ratio. (c) Stock turnover ratio. (d) Margin on sales. |
(1) Efficiency. (2) Profitability. (3) Risk. (4) Liquidity. |
Code:
a) (a)-(3), (b)-(4), (c)-(1), (d)-(2).
b) (a)-(4), (b)-(3), (c)-(1), (d)-(2).
c) (a)-(4), (b)-(3), (c)-(2), (d)-(1).
d) (a)-(3), (b)-(4), (c)-(2), (d)-(1).
Ans: a) (a)-(3), (b)-(4), (c)-(1), (d)-(2).
32. Since companies in some industries have high fixed costs, but have stable and predictable revenues, which of the following statement would be true about these companies?
a) The degree of operating leverage is relatively low.
b) Their bond issues would tend to have a speculative rating.
c) Their overall business risk is relatively low.
d) They are unable to take on much additional financial risk.
Ans: c) Their overall business risk is relatively low.
33. X Co. has target ROE of 14%. The financial leverage of the company is 0.5. The corporate rate tax applicable to the company is 30%. If the average cost of debt is 9.5%, the ROI that the company should earn to achieve the target ROE is
a) 16.5%.
b) 18.25%.
c) 19.35%.
d) 20.20%.
Ans: a) 16.5%.
34. Match List – I with List – II:
|
List – I |
List – II |
|
(a) Operating Income. (b) Capital employed. (c) Inventory turnover. (d) Gross cash flow. |
(1) Cost of goods sold to average stock. (2) Profit before depreciation, interest and tax. (3) Next fixed assets investment and networking capital. (4) Total funds invested. (5) Profits before interest and taxes. |
Codes:
a) (a)-(2), (b)-(1), (c)-(4), (d)-(5).
b) (a)-(1), (b)-(3), (c)-(4), (d)-(2).
c) (a)-(2), (b)-(1), (c)-(3), (d)-(4).
d) (a)-(5), (b)-(3), (c)-(1), (d)-(2).
Ans: d) (a)-(5), (b)-(3), (c)-(1), (d)-(2).
35. Long-term objective of financial management is to
a) Maximise return on investment.
b) Maximise market share.
c) Maximise the value of firm’s common stock.
d) Maximise earnings per share.
Ans: c) Maximise the value of firm’s common stock.
36. Match the following:
|
(a) Treasury bills. (b) Beta. (c) Capital budgeting. (d) Working capital. |
(1) Operating cycle. (2) Time value of money. (3) Risk free rate. (4) Systematic risk. |
Codes:
a)(a)-(4), (b)-(3), (c)-(1), (d)-(2).
b) (a)-(4), (b)-(1), (c)-(2), (d)-(3).
c) (a)-(3), (b)-(4), (c)-(2), (d)-(1).
d) (a)-(3), (b)-(1), (c)-(2), (d)-(4).
Ans: c) (a)-(3), (b)-(4), (c)-(2), (d)-(1).
37. Statement A: A critical assumption of the net operating income approach to valuation is that debt and equity levels remain unchanged.
Statement B: A firm’s degree of operating leverage depends primarily upon its level of operating costs.
Codes:
a) Both statements are correct.
b) Both statements are wrong.
c) Statement (A) is correct and (B) is wrong.
d) Statement (A) is wrong and (B) is correct.
Ans: b) Both statements are wrong.
38. If the net cash returns (estimated in current prices) from a project are Rs.5,000, the expected inflation rate is 5% p.a. and the cost of capital is 15.5% p.a., the discounted cash inflows at the end of first year will be
a) Rs.5,250.
b) Rs.5,775.
c) Rs.4,329.
d) Rs.4,545.
Ans: d) Rs.4,545.
39. Assertion (A): NI approach to capital structure implies maximum Kowhen the degree of financial leverage is equal to zero.
Reasoning (R): NI approach to capital structure implies maximum Vfwhen the degree of financial leverage is equal to one.
Codes:
a) Both (A) and (R) are correct.
b) Both (A) and (R) are incorrect.
c) (A) is correct but (R) is incorrect.
d) (A) is incorrect but (R) is correct.
Ans: a) Both (A) and (R) are correct.
40. Match the following:
|
List – A |
List – B |
|
(a) Pareto Analysis. (b) Variance of cash flows. (c) Vf = Ve + Vd. (d) Vf = EBIT |
(1) NI approach. (2) NOI approach. (3) Miller-Orr Model. (4) Inventory. |
Codes:
a) (a)-(1), (b)-(2), (c)-(3), (d)-(4).
b) (a)-(2), (b)-(1), (c)-(4), (d)-(3).
c) (a)-(3), (b)-(4), (c)-(2), (d)-(1).
d) (a)-(4), (b)-(3), (c)-(1), (d)-(2).
Ans: d) (a)-(4), (b)-(3), (c)-(1), (d)-(2).
41. Statement (A): A sample form population does not have to share the same characteristics as the population.
Statement (B): The difference between a sample statistic and its corresponding population parameter is called sampling error.
Codes:
a) Statement (A) is correct and (B) is incorrect.
b) Statement (A) is incorrect and (B) is correct.
c) Both the statements are correct.
d) Both the statements are incorrect.
Ans: b) Statement (A) is incorrect and (B) is correct.
42. The classification method in which the upper limit of interval is the same as of lower limit class interval is called
a) Mid-point method.
b) Exclusive method.
c) Inclusive method.
d) Ratio method.
Ans: b) Exclusive method.
43. In a normal distribution, the increased spread and decreased height represents
a) Larger value of standard deviation.
b) Smaller value of variance.
c) Larger value of variance.
d) Smaller value of standard deviation.
Ans: a) Larger value of standard deviation.
44. Research method which is concerned with exploring the effect of one variable on another is known as
a) Dependent research.
b) Causal research.
c) Exploratory research.
d) Contemporary research.
Ans: b) Causal research.
45. The list of voters, number of students in a university and the telephone directory are some of the examples of
a) Sampling frames.
b) Sampling unit.
c) Systematic sampling.
d) Cluster sampling.
Ans: a) Sampling frames.
46. Match the following:
|
List – I |
List – II |
|
(a) Random sampling. (b) Non-random sampling. (c) Census report. (d) Data processing. |
(1) Secondary data. (2) Information system. (3) Cluster sampling. (4) Stratified sampling. |
Codes:
a) (a)-(3), (b)-(4), (c)-(2), (d)-(1).
b) (a)-(4), (b)-(1), (c)-(2), (d)-(3).
c) (a)-(2), (b)-(3), (c)-(4), (d)-(1).
d) (a)-(4), (b)-(3), (c)-(1), (d)-(2).
Ans: d) (a)-(4), (b)-(3), (c)-(1), (d)-(2).
47. Statement (A): In a scatter diagram, the independent variable is shown on the X-axis while the dependent variable is shown on the Y-axis.
Statement (B): The coefficient of rank correlation has the same units as the Pearsonian coefficient of correlation.
Codes:
a) Both statements (A) and (B) are true.
b) Both statements (A) and (B) are false.
c) Statement (A) is true, but statement (B) is false.
d) Statement (A) is false, but statement (B) is true.
Ans: a) Both statements (A) and (B) are true.
48. Match the following:
|
List – I |
List – II |
|
(a) R. A. Fisher. (b) Karl Pearson. (c) Spearman. (d) Gosset. |
(1) Rank correlation. (2) Anova. (3) Student’s t distribution. (4) Correlation. |
Codes:
a) (a)-(4), (b)-(3), (c)-(1), (d)-(2).
b) (a)-(3), (b)-(4), (c)-(2), (d)-(1).
c) (a)-(3), (b)-(1), (c)-(4), (d)-(2).
d) (a)-(2), (b)-(4), (c)-(1), (d)-(3).
Ans: d) (a)-(2), (b)-(4), (c)-(1), (d)-(3).
49. If A speaks truth in 20 per cent cases and B speaks truth in 40 per cent cases, what is the probability that they would contradict in a particular case?
a) 0.8.
b) 0.12.
c) 0.32.
d) 0.44.
Ans: d) 0.44.
50. Research method which is concerned with exploring the effect of one variable on another is known as
a) Dependent research.
b) Causal research.
c) Exploratory research.
d) Contemporary research.
Ans: b) Causal research.
51. The success of an organisation depends on
a) Planning and direction.
b) Training and development.
c) Commitment and Co-operation.
d) Discipline and Control.
Ans: c) Commitment and Co-operation.
52. Which of the following functions of management is referred to as the essence of management?
a) Planning.
b) Organising.
c) Coordinating.
d) Controlling.
Ans: c) Coordinating.
53. Match the following:
|
List – A |
List – B |
|
(a) Mary Parker Follet. (b) L. Urwick. (c) Max Weber. (d) Blake and Mouton. |
(1) Bureaucracy. (2) Bridging scientific management and human relations. (3) Management Science. (4) Concern for people and concern for production. |
Codes:
a) (a)-(4), (b)-(3), (c)-(2), (d)-(1).
b) (a)-(2), (b)-(1), (c)-(4), (d)-(3).
c) (a)-(3), (b)-(4), (c)-(1), (d)-(2).
d) (a)-(2), (b)-(3), (c)-(1), (d)-(4).
Ans: d) (a)-(2), (b)-(3), (c)-(1), (d)-(4).
54. In the process of delegating authority, the superior delegates
a) Authority and responsibility.
b) Responsibility only.
c) Authority only.
d) Responsibility and accountability.
Ans: c) Authority only.
55. Assertion (A): Without co-ordination, people would lose sight of their roles within the total organization and be tempted to pursue their own interests.
Reasoning (R): Co-ordination is the process of integrating the activities of separate departments in order to pursue organizational goals effectively.
a) Both (A) and (R) are correct.
b) Both (A) and (R) are incorrect.
c) (A) is correct and (R) is incorrect.
d) (A) is incorrect and (R) is correct.
Ans: a) Both (A) and (R) are correct.
56. When a process undergoes a change due to re-engineering programme, ________ of the concerned employee also changes.
a) Qualification.
b) Designation.
c) Job profile.
d) Job experience.
Ans: c) Job profile.
57. Statement (1): Sound policies do not help in resolving intra-personal, inter-personal and inter-group conflicts.
Statement (2): The Delphi technique is named after the ancient Greek philosopher Peter Delphi.
Codes:
a) Both (1) and (2) are correct.
b) Both (1) and (2) are incorrect.
c) (1) is correct and (2) is incorrect.
d) (1) is incorrect and (2) is correct.
Ans: b) Both (1) and (2) are incorrect.
58. Which of the following is a Human Resource Model?
a) The Harward Model.
b) Systems Theory Model.
c) McGregor’s Model.
d) Lawler and Porter Model.
Ans: a) The Harward Model.
59. Match the following objectives and functions:
|
Objectives |
Functions |
|
(a) Functional. (b) Organisational. (c) Societal. (d) Personal. |
(1) Employee relations. (2) Compensation. (3) Assessment. (4) Union-management relations. |
Codes:
a) (a)-(2), (b)-(4), (c)-(1), (d)-(3).
b) (a)-(3), (b)-(4), (c)-(2), (d)-(1).
c) (a)-(4), (b)-(3), (c)-(1), (d)-(2).
d) (a)-(3), (b)-(1), (c)-(4), (d)-(2).
Ans: d) (a)-(3), (b)-(1), (c)-(4), (d)-(2).
60. Excessive reliance on internal recruitment by an organisation would lead to the serious problems of
a) Reduced job performance.
b) Internal resistance.
c) Lack of motivation.
d) Labour turnover.
Ans: a) Reduced job performance.
61. Match the name of the Banks with their tag line:
|
Name of the Bank |
Tag line |
|
(a) Bank of Baroda. (b) Bank of Rajasthan. (c) H.S.B.C. (d) Standard Chartered Bank. |
(1) Dare to dream. (2) Your right partner. (3) India’s International Bank. (4) The World’s Local Bank. |
Codes:
a) (a)-(2), (b)-(4), (c)-(1), (d)-(3).
b) (a)-(3), (b)-(1), (c)-(4), (d)-(2).
c) (a)-(3), (b)-(1), (c)-(2), (d)-(4).
d) (a)-(2), (b)-(1), (c)-(4), (d)-(3).
Ans: b) (a)-(3), (b)-(1), (c)-(4), (d)-(2).
62. Match the following:
|
Bank |
Slogans |
|
(a) State Bank of India. (b) CITI Bank. (c) Allahabad Bank. (d) Bank of India. |
(1) A tradition of trust. (2) Relationships beyond banking. (3) Pure banking, Nothing else. (4) Let’s get it done. |
Codes:
a) (a)-(3), (b)-(4), (c)-(2), (d)-(1).
b) (a)-(4), (b)-(3), (c)-(1), (d)-(2).
c) (a)-(3), (b)-(4), (c)-(1), (d)-(2).
d) (a)-(2), (b)-(1), (c)-(4), (d)-(3).
Ans: c) (a)-(3), (b)-(4), (c)-(1), (d)-(2).
63. Statement (1): An electronic fund transfer system that operates on deferred net settlement basis which settles transactions in batches is referred to as NEFT.
Statement (2): The risk that a bank faces while trading in government securities is called trade risk.
Codes:
a) Both the Statements are true.
b) Both the Statements are false.
c) Statement (1) is true and (2) is false.
d) Statement (2) is true and (1) is false.
Ans: c) Statement (1) is true and (2) is false.
64. Statement (A): When a banker provides the locker facility to a customer, the relationship between them is that of bailor and bailee.
Statement (B): Debentures are governed by company law.
Codes:
a) Both the statements are correct.
b) Both the statements are wrong.
c) Statement (A) is correct and (B) is wrong.
d) Statement (B) is correct and (A) is wrong.
Ans: d) Statement (B) is correct and (A) is wrong.
65. The interest rate at which banks can borrow funds in marketable size from other banks in the Indian Inter-bank market is
a) Repo-Rate.
b) Hard-currency.
c) LIBOR.
d) MIBOR.
Ans: d) MIBOR.
66. Lead Bank System was started on the recommendation of
a) Raja Challaiah Committee.
b) Kelkar Committee.
c) Nariman Committee.
d) Malhotra Committee.
Ans: c) Nariman Committee.
67. According to 14thReport of 2ndARC which of the following is/are the core principle/s of Financial System in India?
(a) Focus on results
(b) Adopting modern financial management practices
(c) Budgeting to realistic
(d) Transparency and simplicity
Select the correct answer by using code given below :
a) (a), (d).
b) (b), (c), (d).
c) (a), (c), (d).
d) (a), (b), (c), (d).
Ans: d) (a), (b), (c), (d).
68. Capital adequacy norm helps the banks:
(1) For strengthening capital base of banks.
(2) For sanctioning more loan.
Codes:
a) Both (1) and (2) are correct.
b) Both (1) and (2) are incorrect.
c) (1) is correct, but (2) is incorrect.
d) (2) is correct, but (1) is incorrect.
Ans: c) (1) is correct, but (2) is incorrect.
69. The concept of Mutual Funds was started with Unit Schemes of Unit Trust of India in ________ in ________.
a) 1974, India.
b) 1982, Canada.
c) 1964, Chicago.
d) 1964, India.
Ans: d) 1964, India.
70. Ad hoc Treasury Bills are issued in favour of ________ only.
a) Commercial Banks.
b) Scheduled Banks.
c) Reserve Bank of India.
d) Regional Rural Banks.
Ans: c) Reserve Bank of India.
71. An increasing a large number of firms are changing their organisation focus from
a) Brand management to customer relationship management.
b) Product management to functional management.
c) Product management to territory management.
d) Territory management to functional management.
Ans: a) Brand management to customer relationship management.
72. Assertion (A): Companies unveiling a new technology favour setting high price.
Reason (R): They do so to stall the entry of competitors into the market.
Codes:
a) Both (A) and (R) are incorrect.
b) Both (A) and (R) are correct.
c) (A) is correct and (R) is incorrect.
d) (A) is incorrect and (R) is correct.
Ans: c) (A) is correct and (R) is incorrect.
73. Assertion (A): Brand is much more complex, apart from attributes and benefits.
Reason (R): The values which govern a producer are reflected by the brand.
Codes:
a) Both (A) and (R) are correct.
b) Both (A) and (R) are incorrect.
c) (A) is correct, but (R) is incorrect.
d) (A) is incorrect, but (R) is correct.
Ans: a) Both (A) and (R) are correct.
74. Match the following products with their brands.
|
List – I |
List – II |
|
(a) Scooters. (b) Toothpaste. (c) Typewriter. (d) Bread. |
(1) Modern. (2) Facit. (3) Falcon. (4) Forhans. |
 Codes:
a) (a)-(4), (b)-(2), (c)-(3), (d)-(1).
b) (a)-(3), (b)-(2), (c)-(4), (d)-(1).
c) (a)-(3), (b)-(4), (c)-(2), (d)-(1).
d) (a)-(1), (b)-(4), (c)-(2), (d)-(3).
Ans: c) (a)-(3), (b)-(4), (c)-(2), (d)-(1).
75. Assertion (A): Market development strategy enables the company to gain more market share.
Reason (R): Diversification strategy leads to an increase in market share.
Codes:
a) Both (A) and (R) are correct.
b) (A) is correct and (R) is incorrect.
c) (A) is incorrect and (R) is correct.
d) Both (A) and (R) are incorrect.
Ans: a) Both (A) and (R) are correct.
76. Match the following:
|
List – I |
List – II |
|
(a) Width of product-mix. (b) Depth of product-mix. (c) Length of product-mix. (d) Consistency of product-mix. |
(1) Number of variants in the product line. (2) Closely related product lines. (3) No. of items in the product mix. (4) Number of product lines. |
Codes:
a) (a)-(1), (b)-(2), (c)-(3), (d)-(4).
b) (a)-(4), (b)-(3), (c)-(2), (d)-(1).
c) (a)-(4), (b)-(3), (c)-(1), (d)-(2).
d) (a)-(3), (b)-(4), (c)-(2), (d)-(1).
Ans: c) (a)-(4), (b)-(3), (c)-(1), (d)-(2).
77. Demographic segmentation includes
(a) Age and life cycle.
(b) Income and social class.
(c) Generation and gender.
(d) Geography and income.
Codes:
a) (a), (b) and (c) only.
b) (a) and (b) only.
c) (c) and (b) only.
d) (b), (c) and (d) only.
Ans: a) (a), (b) and (c) only.
78. Statements:
1) Product line refers to a group of products within a product class that are closely related.
2) The width of a product mix refers to how many different product lines the company carries.
Codes:
a) Both are correct.
b) Both are incorrect.
c) (1) is correct, (2) is incorrect.
d) (2) is correct, (1) is incorrect.
Ans: a) Both are correct.
79. Match the following:
|
List – A |
List – B |
|
(a) Value pricing. (b) Going rate pricing. (c) Markup pricing. (d) Target return pricing. |
(1) Cost plus profit pricing. (2) Pricing for a fixed rate of profit. (3) Pricing dependent on competitors’ pricing. (4) Charging low price for a high quality offering. |
Codes:
a) (a)-(3), (b)-(2), (c)-(1), (d)-(4).
b) (a)-(4), (b)-(3), (c)-(2), (d)-(1).
c) (a)-(4), (b)-(3), (c)-(1), (d)-(2).
d) (a)-(1), (b)-(3), (c)-(2), (d)-(4).
Ans: c) (a)-(4), (b)-(3), (c)-(1), (d)-(2).
80. Assertion (A): Giveaways and buy-one, get-one (BoGo) sales are examples for penetration pricing.
Reason (R): The manufacturer temporarily loses money, but does so in the hope of creating interest in the new product.
Codes:
a) Both (A) and (R) are true and (R) is the correct explanation of (A).
b) Both (A) and (R) are true but (R) is not the correct explanation of (A).
c) (A) is correct, but (R) is incorrect.
d) (A) is incorrect, but (R) is correct.
Ans: a) Both (A) and (R) are true and (R) is the correct explanation of (A).
81. Match the following:
|
List – I |
List – II |
|
(a) Sec. 124 of Contract Act. (b) Sec. 126 of Contract Act. (c) Sec. 148 of Contract Act. (d) Sec. 184 of Contract Act. |
(1) Bailment. (2) Qualification of agent. (3) Contract of Guarantee. (4) Contract of Indemnity. |
Codes:
a) (a)-(3), (b)-(4), (c)-(1), (d)-(2).
b) (a)-(2), (b)-(1), (c)-(3), (d)-(4).
c) (a)-(4), (b)-(3), (c)-(1), (d)-(2).
d) (a)-(1), (b)-(2), (c)-(4), (d)-(3).
Ans: c) (a)-(4), (b)-(3), (c)-(1), (d)-(2).
82. Assertion: A minor can be admitted only to the benefits of a partnership firm.
Reasoning: A minor cannot be a full-fledged partner in a partnership firm.
Codes:
a) Both assertion and reasoning are correct.
b) Both assertion and reasoning are not correct.
c) Assertion is correct, but reasoning is not correct.
d) Assertion is not correct, but reasoning is correct.
Ans: a) Both assertion and reasoning are correct.
83. Competition Act is the successor of
a) FERA.
b) MRTP Act.
c) POTA.
d) Competition Council Act.
Ans: b) MRTP Act.
84. Which of the following statements is correct?
a) Marking to market is the term that applies to the daily resettlement feature found in all forward contracts.
b) A future contract is exactly the same as a forward contract.
c) Using a contract on a related, but not identical, asset as a means of hedging is called cross rating.
d) The gain or losses on a futures contract are realised on daily basis.
Ans: d) The gain or losses on a futures contract are realised on daily basis.
85. Match the following legislations with the year of their enactment:
|
(a) Foreign Exchange Management Act. (b) Factories Act. (c) Monopolies and Restrictive Trade Practices Act. (d) Consumer Protection Act. |
(1) 1948. (2) 1999. (3) 1986. (4) 1969. |
Codes:
a) (a)-(2), (b)-(1), (c)-(3), (d)-(4).            Â
b) (a)-(2), (b)-(1), (c)-(4), (d)-(3).
c) (a)-(3), (b)-(4), (c)-(2), (d)-(1).             Â
d) (a)-(3), (b)-(4), (c)-(1), (d)-(2).
Ans: b) (a)-(2), (b)-(1), (c)-(4), (d)-(3).
86. Match the following Acts in List – I with the years they are enacted in List – II:
|
List – I |
List – II |
|
(a) Payment of Bonus Act. (b) Workmen Compensation Act. (c) Minimum Wages Act. (d) Payment of Gratuity Act. |
(1) 1923. (2) 1972. (3) 1948. (4) 1965. |
Codes:
a) (a)-(4), (b)-(1), (c)-(3), (d)-(2).
b) (a)-(2), (b)-(3), (c)-(1), (d)-(4).
c) (a)-(1), (b)-(2), (c)-(4), (d)-(3).
d) (a)-(3), (b)-(4), (c)-(2), (d)-(1).
Ans: a) (a)-(4), (b)-(1), (c)-(3), (d)-(2).
87. Every LLP has to file an annual return duly authenticated with the Registrar within ________ days of closure of its financial year.
a) 45.
b) 120.
c) 60.
d) 90.
Ans: c) 60.
88. ‘Not negotiable’ crossing is warning to the ________.
a) Paying banker.
b) Collecting banker.
c) Holder.
d) a) and b) together.
Ans: c) Holder.
89. Section 2 (y) of the _______, explains turnover as, ‘‘It includes value of sale of goods or services’’.
a) The Competition Act, 2002.
b) The Factories Act, 1948.
c) The Trade Union Act, 1926.
d) Maharashtra Goods and Services Tax Act, 2017.
Ans: a) The Competition Act, 2002.
90. If the threat is with regard to the goods or property of the other party, it is not _______.
a) Duress.
b) Fraud.
c) Mistake.
d) Illegal.
Ans: a) Duress.
91. Statement A: According to Section 145, income chargeable under income from other sources shall be computed only on cash basis of accounting.
Statement B: Income from machinery let out on hire is taxable under income from other sources.
a) Statement A is true, but B is false.
b) Statement A is false, but B is true.
c) Both the statements are false.
d) Both the statements are true.
Ans: b) Statement A is false, but B is true.
92. Match the following:
|
List – I |
List – II |
|
(a) Long term capital asset. (b) Capital gain exemption. (c) Cost of inflation index. (d) Capital gain on transfer of agricultural land. |
(1) Section 48. (2) Section 2(29A). (3) Section 10. (4) Section 54B. |
Codes:
a) (a)-(2), (b)-(3), (c)-(1), (d)-(4).
b) (a)-(2), (b)-(3), (c)-(4), (d)-(1).
c) (a)-(3), (b)-(2), (c)-(4), (d)-(1).
d) (a)-(1), (b)-(3), (c)-(4), (d)-(2).
Ans: a) (a)-(2), (b)-(3), (c)-(1), (d)-(4).
93. Statement 1: The objective of corporate taxation is to maximize corporate wealth.
Statement 2: Providing tax deductions, tax exemptions and tax rebate under corporate taxation increases tax avoidance. Indicate whether the statements are true or false.
a) Both the statements are true.
b) Both the statements are false.
c) Statement ‘1’ is true, but ‘2’ is false.
d) Statement ‘1’ is false, but ‘2’ is true.
Ans: b) Both the statements are false.
94. The problem of ‘Double Taxation’ in International Trade can be overcome by
a) Bilateral agreement.
b) Unilateral agreement.
c) Group country agreement.
d) Market agreement.
Ans: a) Bilateral agreement.
95. The company is paying a basic salary of Rs. 60,000 pm. HRA (20% of basic pay), and rent of Rs. 8,000 pm to an employee. What is the HRA exemption from income tax for the employee?
a) Rs. 48,000.
b) Rs. 24,000.
c) Rs. 1,20,000.
d) Rs. 96,000.
Ans: b) Rs. 24,000.
96. Unabsorbed depreciation which could not be set off in the same assessment year, can be carried forward for
a) 8 years.
b) 4 years.
c) 2 years.
d) Indefinite period.
Ans: a) 8 years.
97. Statement (A): Education cess is leviable in case of all assessees.
Statement (B): Income deemed to accrue or arise in India is taxable in case of resident only.Â
Codes:
a) Statement (A) is correct, but (B) is wrong.
b) Statement (A) is wrong, but (B) is correct.
c) Both the Statements are wrong.
d) Both the statements are correct.
Ans: a) Statement (A) is correct, but (B) is wrong.
98. Assertion (A): Both tax planning and tax avoidance are legal and aim at reducing tax liability.
Reasoning (R): Tax planning follows the intent of the law whereas the tax avoidance looks to the loop holes in the law to serve the purpose.
Codes:
a) Both (A) and (R) are correct.
b) (A) is correct and (R) is incorrect.
c) (A) is incorrect and (R) is correct.
d) Both (A) and (R) are incorrect.
Ans: a) Both (A) and (R) are correct.
99. Match the following:
|
List – A |
List – B |
|
(a) Depreciation Allowance. (b) Investment Allowance w.e.f. 2014-15. (c) Investment Allowance w.e.f. 2016-17. (d) Tea Development Account. |
(1) Section 32 AC. (2) Section 33 AB. (3) Section 32. (4) Section 32 AD. |
Codes:
a) (a)-(1), (b)-(2), (c)-(3), (d)-(4).
b) (a)-(3), (b)-(1), (c)-(4), (d)-(2).
c) (a)-(2), (b)-(4), (c)-(3), (d)-(1).
d) (a)-(4), (b)-(3), (c)-(1), (d)-(2).
Ans: b) (a)-(3), (b)-(1), (c)-(4), (d)-(2).
100. Assertion (A): Family pension is not taxable.
Reason (R): The person who receives the family pension was not an employee but dependent of the employee.
Codes:
a) Both (A) and (R) are correct.
b) (A) is correct and (R) is incorrect.
c) Both (A) and (R) are incorrect.
d) (A) is incorrect and (R) is correct.
Ans: d) (A) is incorrect and (R) is correct.