UGC NET 2014 Dec Commerce Paper 2
Q. 1 The responsibility of the organization to the workers includes :
(i) The payment of fair wages
(ii) Arrangement of proper training and education of the workers
(iii) The installation of an efficient grievance handling system
(iv) Welfare of family members
(v) The provision of the best possible working conditions
Identify the correct combination :
A. (i), (ii), (iii) and (v)
B. (ii), (iii), (iv) and (v)
C. (i), (ii), (iii) and (iv)
D. (i), (iii), (iv) and (v)
Q. 2 Match the items of List – I with List – II :
List – I List – II
a. Industries Development Regulation Act i. 1947
b. Import and Export Control Act ii. 1948
c. Foreign Exchange Management Act iii. 1951
d. Factories Act iv. 1999
Identify the correct combination :
Codes :
A. a–>i, b—>iii, c—>iv, d—,ii
B. a–>iii, b—>i, c—>ii, d—,iv
C. a–>iii, b—>i, c—>iv, d—,ii
D. a–>iii, b—>iv, c—>ii, d—,i
Q. 3 Which among the following is not a correct sequential combination ?
A. Macro Environment → Economic Environment → National Income → Pattern of
Income Distribution
B. Business Environment → Internal Environment → Business Ethics → Payment of Fair Wages
C. Business Environment → External Environment → Micro Environment → Suppliers
D. Macro Environment → External Environment → Customers → Prospects of Business Development
Q. 4 Which among the following is not a correct combination ?
A. Industrial Policy – 1948
B. Industrial Policy Statement – 1977
C. Industrial Policy Statement – 1980
D. Industrial Policy Statement – 1991
Q. 5 Statement – I : The industrial policy of the Government of India is aimed at increasing the tempo of industrial development.
Statement – II : After the New Industrial Policy – 1991, the Balance of Trade for India has always been positive.
Codes :
A. Statement (I) is correct, but (II) is incorrect.
B. Statement (II) is correct, but (I) is incorrect.
C. Both Statements (I) and (II) are correct.
D. Both Statements (I) and (II) are incorrect.
Q. 6 Current Ratio 2.5, Liquid Ratio 1.5 and Working Capital `Rs. 60,000. What is Current Assets ?
A. Rs. 60,000.
B. Rs. 80,000.
C. Rs. 1,00,000.
D. Rs. 1,20,000.
Q. 7 X, Y, Z are sharing profits in the ratio of 6 : 5 : 3. A is admitted into partnership for 1/8th share. The sacrificing ratio of X, Y and Z is
A. Equal
B. 6:5 :3
C. 5/14, 4/14, 5/14
D. 4 : 5 : 5
Q. 8 Accounting information given by a company :
Total assets turnover 3 times
Net profit margin 10%
Total assets ` 1,00,000
The net profit is
A. Rs. 10,000
B. Rs. 15,000
C. Rs. 25,000
D. Rs. 30,000
Q. 9 “Make sufficient provisions for future losses, but do not anticipate future profits.” This statement is in accordance to the concept of :
A. Matching
B. Objectivity
C. Conservatism
D. Materiality
Q. 10 When a firm is dissolved, profit or loss on realisation is shared by the partners
A. Equal
B. In the ratio of their capital balances
C. In the profit sharing ratio
D. In the ratio laid down in Garner Vs. Murray
Q. 11 The inverse relationship between variations in the price and quantity demanded is not due to
A. Income Effects
B. Substitution Effects
C. Future Expectations
D. Law of Diminishing Marginal Utility
Q. 12 Consumer is said to be in equilibrium, maximizing his total utility, when
A. the marginal utilities of the two goods consumed are equal.
B. the proportions of the marginal utilities and respective prices are equal.
C. the consumer gets full satisfaction from the consumption.
D. the consumer feels satisfied with his expenditure on the various goods
Q. 13 Match the items of the following two lists and suggest the correct code :
List – I List – II
a. Zero Income Elasticity i. Substitute goods
b. Unit Cross Elasticity ii. Complementary goods
c. Positive Cross Elasticity iii. Indifferent goods
d. Negative Cross Elasticity iv. Independent goods
Choose the correct option :
A. a—>iii, b—>ii, c—>i, d —–>iv
B. a—>ii, b—>iii, c—>iv, d —–>i
C. a—>iii, b—>iv, c—>i, d —–>ii
D. a—>iv, b—>i, c—>ii, d —–>iii
Q. 14 Statement (A) : The isoquant curves are drawn convex to the origin due to diminishing technical rate of substitution.
Statement (B) : The lesser the convexity of the isoquant curve the greater the possibility of the complementarity of the two inputs.
Codes :
A. Statements (A) and (B) both are correct.
B. Statement (A) is correct but (B) is incorrect.
C. Statement (A) is incorrect but (B) is correct.
D. Statements (A) and (B) both are incorrect.
Q. 15 Match the items of the List – I with those of List – II and suggest the correct code :
List – I List – II
a. Constant average cost over a range of output i. Economic capacity
b. Average cost becomes constant momentarily ii. Reserve capacity
c. Normal average cost is a U-shaped curve iii. Production and Managerialscosts effects
d. Modern Long-run average cost is L-shape iv. Economies and Diseconomies
Codes :
A. a—>i, b—->ii, c—>iii, d —-iv
B. a—>ii, b—->iii, c—>iv, d —-i
C. a—>iii, b—->iv, c—>i, d —-i
D. a—>ii, b—->i, c—>iv, d —-iii
Q. 16 Which one of the following is not probability sampling method ?
A. Simple Random Sampling
B. Cluster Sampling
C. Judgemental Sampling
D. Systematic Sampling
Q. 17 The research carried out to expand the knowledge of a particular field is known as
A. Applied research
B. Qualitative research
C. Quantitative research
D. Basic research
Q. 18 In univariate data analysis t-test is used when the data are in the form of
A. Metric data with one sample
B. Non-metric data
C. Non-metric data with independent variable
D. Metric data with independent two sample
Q. 19 To show the trend for a variable, which one of the presentation method is used ?
A. Histogram
B. Frequency polygon
C. Line graph
D. Scatter graph
Q. 20 Which one of the following objectives is not the objective of secondary data collection ?
A. Identify the problem
B. Test the hypotheses of the relevant present problem
C. Better define the problem
D. Interpret primary data more insightfully
Q. 21 The structure of an organisation in which there is separation of ownership and
management is called
A. Sole proprietorship
B. Partnership
C. Company
D. Cooperative society 21
Q. 22 When a person transacts with a company on matters which is beyond the power of the company, the person will be governed by the Doctrine of
A. Management by Exception
B. Constructive Notice
C. Indoor Management
D. Self Management
Q. 23 Assertion (A) : MBO is effective way of planning and organizing the work.
Reason (R) : Employees participate in setting the objectives.
Codes :
A. Both (A) and (R) are true.
B. Both (A) and (R) are false
C. (A) is true, but (R) is false.
D. (A) is false, but (R) is correct
Q. 24 The appropriate sequence of the formation of a company are in the following order :
A. Promotion, commencement of business and incorporation
B. Promotion, incorporation, capital subscription and commencement of business
C. Capital subscription, promotion, incorporation and commencement of business
D. Incorporation, capital subscription, commencement of business and promotion
Q. 25 Delegation of authority makes the size of the organization :
A. Smaller organization
B. Larger organization
C. Very big organization
D. It does not affect the size of the organization
Q. 26 Managerial Grid suggests the following as the best leader behaviour :
A. High structure and high consideration
B. Low structure and low consideration
C. High concern both for production and people
D. Low concern both for production and people
Q. 27 Marketing strategy development is also known as
A. Marketing Control
B. Marketing Exercise
C. Marketing Planning
D. Situation Analysis
Q. 28 For most people, the purchase of cheese for daily use can be described as a
A. Completely novel buy
B. Modified re-buy
C. Routine re-buy
D. High involvement product
Q. 29 The promotion mix of a company consists of these –
A. Marketing communication, promotion decisions
B. Personal selling, product objectives
C. Advertising, personal selling, sales promotion , publicity and public relations
D. Consumer psychology, buyers motives, brand equity
Q. 30 Rational buying motives that determine purchase decisions are mostly based on
A. Price factor
B. Psychological factors
C. Quality of product
D. Advertisement
Q. 31 Statement – I : Capital structure refers to composition of long-term funds.
Statement – II : These include equity share capital, preference share capital, debentures, all debts and all reserves.
A. Both Statements I and II are correct.
B. Statement I is correct but Statement II is incorrect.
C. Statement I is incorrect but Statement II is correct.
D. Both statements are incorrect.
Q. 32 Match the items of the following two lists and suggest the correct code :
List – I List – II
a. Pay-back Rate of Return i. Discounted Cash Flow Technique
b. Internal Rate of Return ii. Compounded values of investments
and returns
c. Benefit Cost Ratio iii. Crude method for project evaluation
d. Net Terminal Value Method iv. Varying sized projects evaluation
Codes :
A. a—>ii, b—>iii, c—->i, d—-iv
B. a—>iii, b—>i, c—->iv, d—-ii
C. a—>i, b—>iv, c—->ii, d—-iii
D. a—>iv, b—>ii, c—->iii, d—-i
Q. 33 Match the items of the following two lists and suggest the correct code :
List – I List – II
a. Realised yield method i. Cost of equity share capital
b. Taxation ii. Cost of equity capital
c. Cost of total capital employed iii. Cost of debt capital
d. Dividend growth is a consideration iv. Weighted cost of capital
A. a—>iv, b—>iii, c—->ii, d—i
B. a—>ii, b—>vi, c—->i, d—iii
C. a—>ii, b—>iii, c—->iv, d—i
D. a—>i, b—>ii, c—->iii d—iv
Q. 34 Cash Flow Management involves :
I. Lock-box system
II. Marketable securities
III. Playing the float
IV. Concentration Bank Account
A. I, II and III only
B. II, III and IV only
C. I, III and IV only
D. I, II and IV only
Q. 35 Dividend capitalisation model was developed by
A. Ezra Solomon
B. Myron J. Gordon
C. James E. Walter
D. Merton H. Miller and Franco Modigliani
Q. 36 The process of narrowing a large number of candidates to a smaller field is called
A. Rushing
B. Recruitment
C. Selection
D. Enrollment
Q. 37 According to which theory, people are motivated to the extent to which they expect that their actions will help in achievement of goals ?
A. Vroom’s Vector Valence Theory
B. Need Theory
C. Z Theory
D. X Theory
Q. 38 Match the items of List – I with List – II and select the correct code :
List – I List – II
a. Getting Effective Leadership in theIndustrial Organizationi. Dale Yoder
b. The Nature of Leadership,Organization an Managementii. Alford and Beatty
c. Industrial Management iii. Douglas McGregor
d. Personnel Management iv. Chester I. Bernard
Codes :
A. a—>i, b—>ii, c—-> iii, d —->iv
B. a—>iii, b—>iv, c—->ii, d —->i
C. a—>iii, b—>iv, c—-> ii, d —->i
D. a—>iv, b—>iii, c—-> ii, d —->i
Q. 39 Match the items of List – I with List – II :
List – I List – II
a. AITUC i. Indian National Congress
b. BMS ii. Socialists
c. INTUC iii. Rashtriya Swayamsevak Sangh
d. CITU iv. Communist Party of India
Identify the correct combination :
Codes :
A. a—>iv, b—>iii, c—ii, d –>i
B. a—>iv, b—>i, c—ii, d –>iii
C. a—>iv, b—>iii, c—i, d –>ii
D. a—>iv, b—>i, c—iii, d –>ii
Q. 40 The main characteristics of Weber’s bureaucracy are :
A. Specialization
B. Hierarchy of authority
C. System of rules
D. All of the above
Q. 41 Match the items of List – I with List – II :
List – I List – II
a. RBI Nationalization i. 1964
b. Imperial Bank Nationalization ii. 1949
c. Nationalization of 14 Commercial Banks iii. 1955
d. Establishment of IDBI iv. 1969
Identify the correct combination :
Codes :
A. a—> i, b —>ii, c—->iii, d —>iv
B. a—>ii, b —>iii, c—->i, d —>iv
C. a—> iii, b —>ii, c—->iv, d —>i
D. a—> ii, b —>iii, c—->iv, d —>i
Q. 42 As per the RBI Act, 1934, the following functions are described as the functions of a Central Bank :
(i) Banking functions
(ii) Advisory functions
(iii) Supervisory functions
(iv) Promotional functions
Identify the correct combination :
A. (i), (iii) and (iv)
B. (i), (ii) and (iv)
C. (ii), (iii) and (iv)
D. Only (i) and (iii)
Q. 43 Phishing is an attempt to acquire :
A. Loan from unauthorized firms
B. Sensitive information such as username, password, etc.
C. Personal information from banks
D. None of the above
Q. 44 What is Call Money ?
A. Money borrowed or lent for a day or overnight.
B. Money borrowed for more than one day but upto 3 days.
C. Money borrowed for more than one day but upto 7days.
D. Money borrowed for more than one day but upto 14 days.
Q. 45 The Regulatory Authority of Regional Rural Banks is
A. NABARD
B. Central Government
C. state Government
D. Sponsor Bank
Q. 46 Which of the following is not ensured to the consumer in the globalization ?
A. Lower prices
B. Better selection
C. Clear origin of goods and services
D. Improved services
Q. 47 In international trade which of the following is a non-tariff trade barrier ?
A. Quotas
B. Import bans
C. Export controls
D. Anti dumping laws
Q. 48 Match the items of List – I with items in List – II and select a correct code :
List – I List – II
a. Current Account i. Official Capital
b. Capital Account ii. Reserves from foreign countries
c. Unilateral Payments iii. Reparations
d. Official Statement Account iv. Visible Exports and Imports
A. a—>i, b—>iii ,c—>ii ,d—>iv
B. a—>iv, b—>i,c—>ii,d—>iii
C. a—>iv, b—>i,c—>iii,d—>ii
D. a—>iii, b—>ii ,c—>i ,d—>iv
Q. 49 Match the items of List – I with the items in List – II and select a correct code :
List – I List – II
a. Vishesh Krishi Upaj Yojana i. Scheme intended to reduce difficultiesof exporters
b. EPCG ii. Duty Entitlement Pass Book
c. DFRC iii. To boost exports of fruits, vegetables,flowers, minor forest produce etc.
d. DEPB iv. Relating to import of duty free fuel
A. a—> iv, b—> i, c—> ii ,d—> iii.
B. a—> iv, b—>iii., c—> i ,d—> ii
C. a—> iii, b—>.iv, c—>iii ,d—>i
D. a—> iii,b—>i,c—>.iv,d—> ii
Q. 50 Which of the following is not the agency of World Bank ?
A. MIGA
B. ICSID
C. ADB
D. IDA
| Answer Sheet |
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| Question | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| Answer | A | C | D | D | A | C | B | D | C | C |
| Question | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| Answer | C | B | C | B | D | C | D | D | C | B |
| Question | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 |
| Answer | C | B | A | B | B | C | C | C | C | B |
| Question | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | 39 | 40 |
| Answer | B | B | C | C | B | C | A | B | C | D |
| Question | 41 | 42 | 43 | 44 | 45 | 46 | 47 | 48 | 49 | 50 |
| Answer | D | A | B | A | A | C | B | C | D | C |