WB Set Commerce Paper II Solved January 2017 (Subject Code: 06)

West Bengal SET Solved Question Paper

WB Set Commerce Paper II Solved January 2017 (Subject Code: 06)

1. Sampling error decreases as

(A) Sample size decreases.

(B) Population size decreases.

(C) Sample size increases.

(D) Population size increases.


2. The normal distribution is also known as

(A) Asymmetric distribution.

(B) Symmetric distribution.

(C) Platykurtic distribution.

(D) Leptokurtic distribution.


3. If two variables are linearly related, the coefficient of correlation will be

(A) + 1.

(B) – 1.

(C)  1.

(D) 0.


Screenshot 20220820 2209583

Screenshot 20220820 2209582

6. Giffen goods are those goods

(A) For which demand increases as price increases.

(B) Which have a high income elasticity of demand.

(C) Which are in very short supply.

(D) Which have a low cross elasticity of demand.


7. The short run average cost curve is U-shaped because of

(A) The operation of the representative firm.

(B) The existence of the optimum firm.

(C) The operation of increasing costs.

(D) The operation of the law of variable proportions.


8. The sale of branded articles is very common in the situation of

(A) Perfect competition.

(B) Monopoly.

(C) Monopolistic competition.

(D) Oligopoly.


9. Total revenue will be maximum when

(A) Price elasticity of demand is equal to one.

(B) Price elasticity of demand is less than one.

(C) Price elasticity of demand is greater than one.

(D) Price elasticity of demand is infinity.


10. Price discrimination will be profitable if

(A) It is practised under perfect competition.

(B) It is practised under monopoly.

(C) It is practised under oligopoly.

(D) Price elasticity of demand is different under different parts of the market.


11. Match the Industrial Policies in List-I with their respective thrusts in List-II and select the correct answer using the codes given below the Lists:



(a) Industrial Policy 1948.

(b) Industrial Policy 1956.


(c) Industrial Policy 1980.

(d) Industrial Policy 1977.

(1) Bent on developing heavy industry.

(2) Breaking the vicious circle inhibited by infrastructural gap and inadequacies of performance.

(3) Mixed Economy.

(4) Redefining industrial sickness unemployment, rural-urban disparities.


(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).


12. Which one of the following cannot be attributable to a feature of market economy?

(A) Free Enterprise.

(B) Existence of Market & Price.

(C) Central Planning.

(D) Entrepreneurial Activism.


13. Kyoto Protocol Pertains to

(A) Capital Formation.

(B) Globalisation.

(C) Environmental Protection.

(D) Unemployment Reduction.


14. Which one of the following was not related to the steps initiated to overcome the deep economic crisis of 1991?

(A) Fiscal Correction aimed at reducing deficit.

(B) For laying strong foundation of mixed economy.

(C) Abolishing Industrial licensing raj.

(D) Establishing Foreign Investment Promotion Board.


15. 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.



(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.


(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).


16. Span of control refers to span of.

(A) Authority.

(B) Accountability.

(C) Activity.

(D) Responsibility.


17. Maslow’s Hierarchy of needs structure comprises of

(A) Five needs hierarchy.

(B) Seven needs hierarchy.

(C) Three needs hierarchy.

(D) Six needs hierarchy.


18. Importance of subordinates role in decision making process refers to

(A) Centralised Organisation Structure.

(B) Decentralised Organisation Structure.

(C) Matrix Organisation Structure.

(D) Functional Organisation Structure.


19. In ‘Line and Staff’ organisation, the authority lies in

(A) Line.

(B) Staff.

(C) Both Line and Staff.

(D) Neither Line nor Staff.


20. Business ethics deals with

(A) Personal values in the work-place.

(B) Corporate values regarding business profitability.

(C) Integration of personal and corporate values in work-related contexts.

(D) Values integrating business, society and nature.


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21. Product variations refer to the

(A) Length of the Product portfolio.

(B) Breadth of the Product portfolio.

(C) Width of the Product portfolio.

(D) Depth of the Product portfolio.


22. ‘Time’ and ‘Breadth’ dimensions are the two major dimensions of

(A) Social Marketing.

(B) Sales Management.

(C) Societal Marketing.

(D) Consumerism.


23. Consumerism tries to increase

(A) Rights and powers of consumers.

(B) Rights and powers of sellers.

(C) Rights and powers of distributors.

(D) Rights and powers of government.


24. Putting a price tag of Rs. 199/- on any product is

(A) Premium pricing strategy.

(B) Perceived value pricing strategy.

(C) Psychological pricing strategy.

(D) Skimming pricing strategy.


25. Which of the following variables is not used by the marketers for demographic segmentation?

(A) Gender.

(B) Age.

(C) Income.

(D) Lifestyle.


26. X and Y are partners in a firm sharing profits in the ratios 2 : 1. Z is admitted with a 1/3 profit sharing. What will be the new profit sharing ratio of X, Y and Z?

(A) 3 : 3 : 3.

(B) 4 : 3 : 2.

(C) 4 : 2 : 3.

(D) 2 : 3 : 4.


27. Which one of the following will not affect the working capital?

(A) Realisation of Cash from Debtors.

(B) Sale of Plant and Machinery in Cash.

(C) Issue of Equity Shares.

(D) Redemption of Debentures.


28. If margin of safety is Rs. 2,40,000 (40% of sales) and p/v ratio is 30%. Then fixed cost is

(A) Rs. 1,08,000.

(B) Rs. 3,60,000.

(C) Rs. 1,80,000.

(D) Rs. 1,00,000.


29. ABC Ltd. forfeited 100 shares of Rs. 10 each for non-payment of final call of Rs. 2 each. Out of these 60 shares were re-issued at Rs. 9 per share as fully paid. Amount transferred to Capital Reserve is

(A) Rs. 400.

(B) Rs. 420.

(C) Rs. 600.

(D) Rs. 480.


30. When a partnership is dissolved and the following claims used to be met out of cash received on piece-meal basis, then which is the correct sequence in which these claims have to be met?

1 (1)Any partner’s loan.

2 (2) Capital and Current Account Balances.

3 (3) Expenses of Dissolution.

4 (4) Outsider’s claim.


(A) (3), (4), (1), (2).

(B) (2), (3), (1), (4).

(C) (1), (2), (4), (3).

(D) (1), (2), (3), (4).


31. HR plans of any organization does not include

(A) Personnel plans.

(B) Production plans.

(C) Compensation plans.

(D) Training and development plans.


32. Providing Leave Travel Allowance (LTA) to the workers/employees fulfills their

(A) Basic needs.

(B) Self actualisation needs.

(C) Social needs.

(D) Self-esteem needs.


33. An interview, in which we ask about a candidate’s behaviour in a certain given situation is

(A) Situational interview.

(B) Situational test.

(C) Behavioural tests.

(D) Job related questions.


34. The term job enlargement means

(A) Redesigning jobs for workers.

(B) Assigning additional activities for workers.

(C) Moving workers from one job to other.

(D) Increasing the job time.


35. Which one of the following is not usually an example of indirect participation by the employees in participative management?

(A) Worker-director.

(B) Joint management council member.

(C) Collective bargaining.

(D) Suggestion-box scheme.


36. Which of the following committees are related to banking sector reforms in India?

(A) Narasimham committee and L.C. Gupta committee.

(B) L.C. Gupta committee and Verma committee.

(C) Narasimham committee and Verma committee.

(D) Verma committee and Malhotra committee.


37. SIDBI was set up in

(A) 1989.

(B) 1990.

(C) 1988.

(D) 1991.


38. CBS implies

(A) Core Banking System.

(B) Central Banking System.

(C) Core Banking Solution.

(D) Central Banking Solution.


39. In 1969, ________commercial banks were nationalised.

(A) 6.

(B) 20.

(C) 14.

(D) 11.


40. NABARD came into existence on

(A) July 14, 1982.

(B) June 14, 1982.

(C) June 12, 1982.

(D) July 12, 1982.


41. Market values are often used in computing the weighted average cost of capital because

(A) This is the simplest way to do the calculation.

(B) This is consistent with the goal of maximising shareholder value.

(C) This is required by SEBI.

(D) This is a very common mistake.


42. Two firms that are virtually identical except for their capital structure are selling in the market at different values. According to M & M

(A) One of the firms will be at greater risk of bankruptcy.

(B) The firm with greater financial leverage will have the higher value.

(C) This proves that markets cannot be efficient.

(D) This situation will not continue for long because arbitrage will eventually cause the firms to sell at the same value.


43. Consider the following statements about the dividend growth model

1) The model prices shares on the basis of the present value of expected future dividends.

2) The model relies on the ability to predict a constant future growth rate of dividend payments.

3) The dividend growth model does not accommodate future changes in shareholder’s required rate of return.

Choose the correct option from the following:

(A) (1) and (2) are correct.

(B) (2) and (3) are correct.

(C) Only (1) is correct.

(D) Only (3) is correct.


44. The dividend irrelevance theorem to share valuation was propounded by

(A) James E. Walter.

(B) Myron Gordon.

(C) Modigliani and Miller.

(D) David Durand.


45. Cost of debt is cheaper than the cost of equity because of the following:

1) Interest rate remains fixed as per contract.

2) The amount of interest payment depends on the performance of the firm.

3) Interest payment brings tax savings to the firm.

Choose the correct option from the following:

(A) (1) and (2) are correct.

(B) (1) and (3) are correct.

(C) (2) and (3) are correct.

(D) Only (3) is correct.


46. When managers in an international business consider market segmentation in foreign countries, they need to be cognizant of the differences between countries in the structure of market segments and existence of market segments that

(A) Exist in the home country.

(B) Transcend national borders.

(C) Are divided by gender.

(D) Are based on home market models.


47. Ultimately ________ was replaced by ________ on 1st January 1995.






48. The main promoter of trade liberalisation was






49. The first wave of emerging market TNCs made a global appearance because of________.

(A) Prior connections.

(B) The advantage of low cost labour and raw material.

(C) The search for new markets.

(D) The use of technological advantages.


50. Which of the following is not a common feature of direct lending by Exim Bank?

(A) That they are for medium or long term.

(B) The size of the loan is high.

(C) Security is not insisted upon.

(D) Interest rates are relatively low.



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