NET-SAMPLE TEST :COMMERCE: PAPER II (SOLVED)
Paper II: 50 Multiple Choice Questions (SOLVED)
Elective: Commerce
1. Matrix type of marketing organization is most suited fora. Single product, single market situationB.Multi product, multi market situation.*
c. Multi product, single market situation
d. single product, multi market situation
2. Generated increased sales by neglecting quality control, production efficiency and /or cash flow management are.
a.Over marketing*
b.Remarketing
c.Under marketing
d.demarcating
3. When a change in customers tastes and preferences and market structures in general occurs, it is termed as
a.market inertia
b.market planning
c.Market drift.*
d.market change
4. Market orientation is a technique of selecting.
a.Product integration
b.Concentrated marketing
c.Additional segmentation.*
d.Marketing mix
5. When buyers have too narrow an image of brand, is known as
a..under positioning error
b.doubtful positioning error
c.confused positioning error
d.over positioning error.*
6. Under the companies act, 1956, a person can be a director in
a.7 companies
b.10companies
c.20 companies.*
d.25 companies
7. Which one of the following is not an example of profitability ratios?
A]operating ratio
B]ROI
C]EPS
D]INTEREST COVERAGE RATIO*.
8.The budget which commonly takes form of budgeted profit and loss account and balance sheet is
A]cash budget
B]master budget.*
C]flexible budget
D]sales budget
9. The physical possession of equity shares in case of GDR is with
A]depository
B]custodian.*
C]foreign investor
D]Government
10. For calculating the value of equity share by yield method information is required regarding
A]NRR.*
B]net asset of business
C]face value of share
D]all of the above
11. Life insurance premiums received by an insurance company should be classified as
A]accrued asset
B]accrued liability
C]prepaid expense
D]unearned revenue*
12.The maximum limit of partners in a firm has been specified by
A]the Indian partnership act 1932
B]the Indian contract act 1872
C]the Indian companies act 1956*
D]both A & B
13. Accounting entry for recording loss on the realization of sinking fund investment is
A]sinking fund a/c Dr *
Sinking fund investment a/c
B]sinking fund investment a/c Dr
Sinking fund A/c
C]profit & loss A/c Dr
Sinking Fund Investment A/c
D]sinking fund investment A/c Dr
Profit & loss A/c
14. The method ignores cash generation beyond period when cash inflow exceeds investment
A]pay back method.*
B]ARR
C]NPV
D]IRR
15.By using CAPM, if risk free rate of return Rf is 6%,B is 1.4 and Market Return Rm is 16% than required rate of return on project (RRRp) is
A]10%
B]14%
C]20%*
D]25%
16. The salint features of Deep Discount Bonds doesn’t include
A]it carries a fixed rate of interest*
B]DDBs are issued to face value bond
C]These are zero interest bonds
D]difference between sales price and original cost is investors profit
17. Total leverage is acombination of a]financial leverage and EPS
B] operating Leverage and EPS
C]financial leverage and operating leverage*
D] financial leverage and operating leverageand EPS
18………….risk refers to risk which is caused due to factors unique or related to a firm or industry
A]systematic
B]unsystematic*
C]market
D]interestrate
19.According to DOW theory the market is always considered as having …movements, all growing at the same timea]
A]1
B]3*
C]2
D]4
20.The fixed price at which an option may be exercised, known as …..price
A]striking*
B]bid
C]hammer
D]called up
21.Black scholes pricing model is used for
A]option*
B]forward
C]future
D] all of the above
22.An investor would buy a bond if
A] the intrinsic value is lower than the market value
B]the intrinsic value is higher than the market value.*
C]the current market value is lower than the redemption value
D]the required rate of return is equal to coupen rate of interest
23.Low asset turnover may indicate
A]low assets
B]high cost of maintenance
C]idle assets*
D]all of the above
24.The phenomenon of over trading in working capital is characterized by
A]less amount of cash invested in current assets*
B]overcapitalization of the company as compared to volume of sales
C]high amount of cash invested in current assets
All of the above
25.Underwriting commission on shares as per SEBI guide lines
A]4% and above
B]3.5-4%
C]3-3.25%
D] upto 2.5%*
26. Euro convertible bonds issued by Indian companies refer to bonds issued in foreign currency in
A]India or any country outside India
B]European countries only
C]India and any cpuntry in europpe
D]any country other than India*
27.Which of the following provides liquidity to money market instruments by creating a secondary market where they can be traded?
A]DFHI*
B]NSDL
C]SBI
D]OTCEI
28.GIVEN FIXED COST=Rs 20000/-, the operating BEP in units=2500 and financial BEP = rs 4000, the overall BEP in units is…
A]3000.*
B]5000
C]8000
D]4000
29.The agency which has to give approval to any company intending to come out with apublic or right issue, issue related guidance etc is
A]RBI
B]SEBI*
C]STCL
D]CCI
30.As per earning per share approach cost of equity can be can be calculated as (where is g is growth rate)
A]EPS(I+g)/current market price.*
B]EPS/CURRENT MARKET PRICE
C]EPS(i+g)/current market price(I-g)
D]EPS/current market price(I+g)
31.When credit balance in invisibles account is greater than the debit balance in merchandize account, there is a
A]capital account surplus
B]current account surplus.*
C]capital account defecit
D]current account defecit
32.If the convertibility of currency is restricted to certain foreign currency transactions, it is termed as
A]full convertibility
B]partial convertibility.*
C]current account convertibity
D]capial account convertibility
33.The exchange market of India consists of
A]authorized dealers
B]RBI
C]Overseas banks to some xtent
D]all of the above*
34.Which committee was formulated to look into the matter of capital account convertibility in India?a]narasimham committee
B]tarapore committee*
C]tendon committee
D]chore committee
35 A TOM rate quoted is for delivery on
A]the same day
B]second working day
C]third working day
D]following day*
36. Leading and lagging are used for
A]hedging*
B]speculating
C]reducing taxes
D]any of the above
37.Which of the following are the internal techniques for managing foreign exchange exposure?
A]netting
B]futures
C]leading and lagging
D] all except B*
38.When operating profit ratio is 25% and capital turnover artio is 2%what is the ROI?
A]75%
B]50%*
C]25%
D]none of the above
39. Cash flow statement is prepared as per acxounting standard
A] as-5
B] as-4
C] as-3*
D] as-2
40. Which one of the following formulae is used to calculate cross relationship under the span of control?
A] n (n-1)*
B] n {2n -1}
n
C] n { 2n +n-1}
n
D] None of the above
41. Complete consolidation as a class of business combination may include
A] Mergers and acquisitions.*
B] Pools and cartels
C] Trusts and holding companies
D] Trade associations and chambers of commerce
42. In stock exchange operations, when the speculator buys the right to sell acertain number of shares on an agreed amount at a specified time , it is known as
A]no option
B]call option
C]put option*
D]double option
43. Where all the debentures are redeemed, the balance left in the debenture sinking fund account is transferable to
A]debentures a/c
B]sinking fund investment a/c
C]capital redemption reserve
D]general reserve*
44. Capital employed in a business is Rs 150000.profits are Rs 50000/-and the normal rate of profits is 20%.the amount of goodwill as per capitalization method would be
A]Rs 100000*
B]150000
C]200000
D]300000
45. The basis of theory Z is the reliance on
A]external control of human behaviour
B]self control and self direction
C] the belief that productivity is linked to trust, openness, subtlety and intimacy in the work environment.*
D] Government regulatory frame work
46.Deferred payment arrangement aim at financing
A]working capital needs
B]redemption of debts
C]purchase of GDRs
D]import of plant and machinery*
47.The combination of firms in successive stages of same industry may be referred to as
A] horizontal integration
B]vertical integration*
C]forward integration
D]backward integration
48. The motivational process and not the motivators as such is associated with
A]need hierarchy theory*
B]two factor theory
C]erg theory
F]expectancy theory
49. When jobs are broad ended in scope and complexity so that the persons overall area of job responsibility increases, it is a case of
A]job evaluation
B]job specification
C]job enlargement
D]job enrichment*
50. Owners equity stands for
A]fixed assets- fixed liabilities
B]fixed asstes – current liabilities
C]current assets-fixed liabilities
D]total assets –total liabilities*
* Correct answer
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