UGC NET JUNE 2014 SOLVED COMMERCE PAPER III

                       LEAD BY KNOWLEDGE COACHING CENTRE AND TUTORIAL
                             UGC NET JUNE 2014 SOLVED COMMERCE PAPER III
 01. The Competition Act, 2002, seeks to regulate
    (A) Anti-competitive agreements
    (B) Mergers and amalgamation
    (C) Unfair trade practices
    (D) (A) and (B) above
02. Indicate the true statement :
    (A) Large industrial houses are outside the purriew of the
          Competition Act, 2002
    (B) There is no provision for curbing frivolous complaints
           under the CPA.
    (C) The Trade Marks Act, 1999 does not apply to services.
    (D) All of the above are true.
03. The time limit for filing a complaints before the District forum under the
      Consumer Protection Act, 1986 is
    (A) one year
    (B) two years
    (C) three years
    (D) There is no such time limit.
04. The Foreign Investment Promotion Board (FIPB) revamps the rules and
      regulations pertaining to
    (A) Accounting of Foreign Investment
    (B) Investment by NRIs
    (C) Foreign investments
    (D) All of the above
05. Which of the legislation(s) do (does) not form part of the legal
      environment of business in India ?
    (A) The Drugs and Cosmetics Act, 1940
    (B) The Prevention of Food Adulteration Act, 1954
    (C) The Monopolies and Restrictive Trade Practices Act, 1969
    (D) Both (B) and (C) above
06. What is the underlying concept that support the immediate recognition of
      an estimated loss ?
    (A) Substance over form
    (B) Consistency
    (C) Matching
    (D) Prudence
07. Which is not the limitation of budgetary control ?
    (A) Budgets are based on forecasts which may not be true
    (B) Installation and operation of a system of budgetary control is costly.
    (C) Budget is a tool of management and not a substitute of management
    (D) Budgets do not pinpoint the lack of efficiency or the presence of it.
08. Profit volume ratio of an enterprise is 40%. To offset 10% decrease in
      selling price, how much sales must be increased ?
    (A) 10%                  (B) 20%
    (C) 25%                  (D) 40%
09. If debt is ` 220, cash balance is ` 20 and equity is ` 300, then the gearing
      ratio is
    (A) 20%               (B) 40%
    (C) 50%               (D) 30%
10. Responsibility accounting aims to
    (A) ensure that a manager is punished if things go wrong.
    (B) ensure that costs become the responsibility of a specific manager.
    (C) allocate costs to all areas of a business.
    (D) reduce the costs that a department incurs.
11. Find the correct matching of the items of List – I with the items of
      List – II given below :
              List – I                                 List – II
    (a) Normal Profit                   (I) Excess of total revenue over total
                                                      explicit cost
    (b) Economic profit               (II) Total revenue equals total economic cost
    (c) Accounting profit             (III) Excess of total revenue over total of
                                                       explicit and implicit costs and a
                                                       normal rate of return
    Codes :
             (I)   (II) (III)
    (A)   (c)   (a)   (b)
    (B)   (b)   (a)   (c)
    (C)   (a)   (b)   (c)
    (D)   (a)   (c)   (b)
12. Assertion (A) : A monopoly firm’s revenue curve is downward
                             sloping from left to right.
      Reason (R) : The monopoly firm does not simultaneously enjoy
                           the freedom to determine both price and quantity to be sold
                           according to its whims and fancy.
    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 true.
13. The equilibrium level of output for a perfect competitive firm is given by
      the point where :
    (A) MR = MC
    (B) MR < MC
    (C) MR > MC
    (D) MR = MC, and MC starts rising.
14. Match the following :
             List – I                                     List – II
    (i) Dumping                    (a) Monopolistic competitive firm
    (ii) Kinked Revenue
        Curve                         (b) Oligopoly firm
    (iii) Horizontal
          straight line
          revenue curve            (c) Perfectively competitive firm
    (iv) Large number
          of buyers and
          sellers with
          differentiated
          products                     (d) Discriminatory monopoly
    Codes :
           (i) (ii) (iii) (iv)
    (A) (a) (d) (c) (b)
    (B) (b) (d) (a) (c)
    (C) (d) (b) (c) (a)
    (D) (a) (b) (c) (d)
15. Penetrating pricing strategy is appropriate when
    (A) price elasticity of demand in the market is highly inelastic.
    (B) price elasticity of demand in the market is uncertain.
    (C) price elasticity of demand in the market is highly elastic.
    (D) income elasticity of demand in the market is negatively elastic.
16. Assertion (A) : The expected values should be atleast 5 to apply the
                              chi-square test.
      Reason (R) : The chi-square distribution provides an adequate approximation
                          of the sampling distribution.
    Indicate the correct answer from the following :
    Codes :
    (A) Both (A) and (R) are true, and (R) is the right explanation.
    (B) Both (A) and (R) are true, but (R) is not the correct explanation.
    (C) (A) is true, but (R) is false.
    (D) (A) is false, but (R) is true.
17. In a decision problem having four possible alternative decisions and six
      possible states of nature, the pay-off table will include
    (A) Four payoffs
    (B) Six payoffs
    (C) Twenty four payoff
    (D) Ten payoff
18. The mathematical formula for joint probabilities P(AB) = P(A/B) × P(B),
       holds when
    (A) The events are statistically independent.
    (B) The events are statistically dependent.
    (C) The event is either independent or dependent.
    (D) None of the above
19. Which one of the following statements is the correct interpretation of P-value
      of less than 0.01 in hypothesis testing ?
    (A) There is overwhelming evidence to infer that the
          alternative hypothesis is true.
    (B) There is strong evidence to infer that the alternative hypothesis is true.
    (C) There is weak evidence to indicate that the alternative hypothesis is true.
    (D) There is no evidence to infer that the alternative hypothesis is true.
20. Two lists of items are given below :
                List – I                                      List – II
    (i) Charles Babbage                         (a) Mossai
    (ii) Herbert A. Simon                       (b) HTML
    (iii) Tim Berners Lee                        (c) Computer Design
    (iv) Maarc Andreessen                    (d) Decision model
    Which one of the following is the correct match ?
    Codes :
           (i) (ii) (iii) (iv)
    (A) (c) (b) (a) (d)
    (B) (a) (c) (d) (b)
    (C) (b) (a) (c) (d)
    (D) (c) (d) (b) (a)
21. Which of the following statements are true about informal organization ?
    1. It arises spontaneously.
    2. It reflects individual and group goals.
    3. It tends to be permanent and stable.
    4. It tends to be small and manageable.
    5. Its basic purpose is to improve human relations.
    6. Its basic purpose is to achieve organizations goals.
    Codes :
    (A) 1, 2, 3 and 5
    (B) 1, 2, 4 and 6
    (C) 1, 2, 4 and 5
    (D) 2, 3, 5 and 6
22. Which of the following is not true about an employee-centered leader as
       identified by Michigan researchers ?
    (A) Treats subordinates as human beings.
    (B) Shows concern for their well being.
    (C) Focuses on work standards and close supervision.
    (D) Encourages and involves them in goal setting.
23. According to Talcott Parson, organizations can be classified
      primarily into four categories, based on functions. Which of the following
      is not an organization in Parson’s scheme ?
    (A) Political organizations
    (B) Integrative organizations
    (C) Pattern maintenance organizations
    (D) Commercial organizations
24. An MBO programme usually involves the following steps :
    1. Establishing unit’s objectives
    2. Establishing organizational goals
    3. Negotiating or agreeing
    4. Reviewing the performance
    5. Creating action plans
    Indicate the correct sequence of the above steps from the following codes :
    (A) 1, 2, 3, 4, 5
    (B) 2, 1, 3, 5, 4
    (C) 2, 3, 1, 4, 5
    (D) 5, 4, 3, 2, 1
25. Match the following :
            List – I                               List – II
    (a) Fayol                               (1) Economy and Society
    (b) Taylor                              (2) General and Industrial Administration
    (c) Weber                              (3) Principles of Organization
    (d) Mooney and Reilly           (4) Shop Management
    Codes :
           (a) (b) (c) (d)
    (A) (3) (4) (1) (2)
    (B) (2) (4) (1) (3)
    (C) (1) (3) (2) (4)
    (D) (4) (3) (2) (1)
26. A primary group influencing the buyer behaviour is a
    (A) Family
    (B) Professional association
    (C) Religious group
    (D) Trade Union
27. After conducting the business analysis for developing a new
      product, a company must do
    (A) Idea generation
    (B) Product positioning
    (C) Product development and testing
    (D) Test marketing
28. Match the items in List – I with those in List – II :
               List – I                        List – II
    (a) Post purchase
         behaviour                        (i) AIDA
    (b) Personal selling               (ii) ACMEE
    (c) Everitt M. Rogers           (iii) Diffusion of Innovation
    (d) Salesperson training        (iv) Cognitive dissonance
    Indicate the correct matching :
     Codes :
          (a) (b) (c) (d)
    (A) (i) (ii) (iii) (iv)
    (B) (iv) (ii) (iii) (i)
    (C) (iii) (ii) (i) (iv)
    (D) (iv) (i) (iii) (ii)
29. Which type of retail stores generally has the highest operating costs ?
    (A) Department store
    (B) Supermarket
    (C) Chain store
    (D) Co-operative Store
30. Indicate the correct statement :
    (A) India has been a pioneer in social marketing.
    (B) Advertising Standards Council of India is a statutory body set
          up by the government of India.
    (C) Both (A) and (B) are incorrect.
    (D) Both (A) and (B) are correct.
31. Match the items of List – I with the items of List – II :
              List – I                                         List – II
    (a) Trade credit and other
          payables that arise in the
          firm’s day today operations              (i) Maturity Financing
    (b) Financing and asset needs
         over time                                          (ii) Factoring
    (c) A tool for accelerating
         the collection from the customers      (iii) Spontaneous financing
    (d) Seeking financial service to
         finance on its debtors’ balances         (iv) Lock box system
    Codes :
           (a) (b) (c) (d)
    (A) (iv) (iii) (ii) (i)
    (B) (iii) (ii) (iv) (i)
    (C) (ii) (iv) (i) (iii)
    (D) (i) (ii) (iii) (iv)
32. Indicate the cost of equity capital, based on capital asset pricing model,
      with the following information : Beta coefficient – 1.40
      Risk-free rate of interest – 9% Expected Rate of Return on
      equity in the market – 16%
    (A) 9.8%                  (B) 18%
    (C) 18.8%                (D) 16%
33. The degree of super-leverage would be calculated by :
    (A) Adding DOL (Degree of Operating Leverage) and DFL
          (Degree of Financial Leverage)
    (B) Dividing DOL with DFL
    (C) Multiplying DOL and DFL
    (D) Subtracting DOL from DFL
34. Interim cash inflows are reinvested at a rate of return equal to the internal
      rate of return is the built-in mechanism for
    (A) Net Present Value Method
    (B) Internal Rate of Return Method
    (C) Profitability Index Method
    (D) None of the above
35. Who formulated the following model for estimating the market price of
      equity share ?
       P = D +Ra/Rc (E -D)/Rc
    Where, P = Market price of equity share
    D = DPS
    E = EPS
    E – D = Retained earning per share
    Ra = Internal rate of return on investment
    Rc = Cost of capital
    (A) Modigliani-Miller
    (B) Myron-Gordon
    (C) James E. Walter
    (D) Clarkson and Elliot
36. Indicate the quantitative methods of job evaluation
    (A) Ranking methods and Job comparison method
    (B) Point rating method and Factor comparison method
    (C) Grading method and Job classification method
    (D) Factor comparison method and Ranking method
37. Match the items of List – I with those List – II :
               List – I                          List – II
    (1) Career goals                 (a) The process where in an executive
                                                   serves as a guide
    (2) Career path                  (b) The future positions one strives to reach
                                                    as part of career
    (3) Career counseling         (c) The sequential pattern of jobs that form a
                                                   career
    (4) Mentoring                     (d) Guiding people on their possible career
                                                    path
    Codes :
          (1) (2) (3) (4)
    (A) (b) (c) (d) (a)
    (B) (a) (b) (c) (d)
    (C) (d) (c) (b) (a)
    (D) (c) (b) (a) (d)
38. The process of receiving and welcoming an employee when he
      first joins a company and giving him the basic information he needs to
      settle down quickly and happily and starts working, is referred to as
    (A) Placement
    (B) Orientation
    (C) Job Rotation
    (D) Counseling
39. Which is not relevant of succession planning ?
    (A) Analysis of the demand for managers
    (B) Review of existing executives
    (C) Planning individuals career paths
    (D) Recruitment to meet immediate needs
40. Where does recognition of an Employee fall in Maslow’s hierarchy
      of needs theory ?
    (A) Self-actualisation
    (B) Security needs
    (C) Social needs
    (D) Esteem needs
41. The profitability of public-sector banks is low due to
    (i) Over-cautions approach to lending
    (ii) Reserve Bank Policies
    (iii) High Overhead Costs
    (iv) Social-sector lending
    Identify the correct code :
    Codes :
    (A) (i) and (ii)
    (B) (i) and (iv)
    (C) (i), (iii) and (iv)
    (D) (ii) and (iii)
42. Match the items of List – I with those List – II and select correct answer :
                List – I                                List – II
    (1) Narasimham Committee        (a) Lending under consortium
                                                           arrangement
    (2) Shetty Committee                  (b) Frauds and Malpractices in banks
    (3) Ghosh Committee                  (c) Securities operations of banks and financial
                                                            institutions
    (4) Janakiraman Committee         (d) Financial system in India
    Codes :
           (a) (b) (c) (d)
    (A) (3) (4) (2) (1)
    (B) (2) (3) (4) (1)
    (C) (4) (2) (3) (1)
    (D) (3) (4) (1) (2)
43. Which of the following financial institutions is not with in the supervisory Purview
      of Reserve Bank of India ?
    (A) Foreign Commercial Banks Operating in India
    (B) Regional Rural Banks
    (C) Mutual Funds
    (D) State Co-operative Banks
44. The Repo and Reserve Repo rates are resorted to by the RBI as a tool of
    (A) Credit Control
    (B) Settlement Systems
    (C) Currency Management
    (D) Liquidity Control
45. Which one of the following institutions is promoted by the IFCI :
    (A) Credit Analysis and Research Ltd (CARE)
    (B) Rashtriya Gramin Vikas Nidhi (RGVN)
    (C) Clearing Corporation of India Ltd (CCIL)
    (D) Small Industries Development Bank of India (SIDBI)
46. Indicate the right sequence of the stages of internationalization :
    (i) Multinational Company
    (ii) Global Company
    (iii) Transnational Company
    (iv) International Company
    Codes :
    (A) (i) (iv) (ii) (iii)
    (B) (iv) (i) (iii) (ii)
    (C) (i) (iv) (iii) (ii)
    (D) (iv) (i) (ii) (iii)
47. Which of the following is not one of the components of ‘International
      Reserve’ ?
    (A) Special Drawing Rights
    (B) Reserve Position in IMF
    (C) Monetary Gold
    (D) Money Market Instruments
48. Match the items given in List – I with the most appropriate items in List – II :
                    List – I                              List – II
    (a) UNCTAD                              (i) Foreign investment
    (b) WTO                                     (ii) Developing Countries
    (c) TRIMS                                  (iii) UNDP
    (d) ITC                                       (iv) General Council
    Codes :
          (a) (b) (c) (d)
    (A) (ii) (iv) (i) (iii)
    (B) (iii) (iv) (i) (ii)
    (C) (iv) (ii) (i) (iii)
    (D) (iii) (ii) (i) (iv)
49. Duty levied on the value of goods imported is referred to as
    (A) Ad valorem Duty
    (B) Compound Duty
    (C) Specific Duty
    (D) Import Duty
50. Which of the following can be included in the current account of the
      balance of payments ?
    (i) Purchase of goods from abroad
    (ii) Sale of services abroad
    (iii) Workers’ remittances from aboard
    (iv) Sale of copyright to foreigners
    (v) Direct investment in equity capital
    Codes :
    (A) (i), (ii) and (iii)
    (B) (i), (ii) and (iv)
    (C) (i), (ii), (iii) and (v)
    (D) (i), (ii), (iii) and (iv)
51. Which of the following items would be specifically included in the
       statement of cash flows constructed in compliance with AS-3 ?
    (A) Conversion of debt to equity
    (B) Acquiring an asset through lease
    (C) Operating and non-operating cash flow information
    (D) Purchasing a building by giving a mortgage to the seller
52. Fixing the value of an employee depending upon his productivity,
      promotability, transferability and retainability is the core of the
    (A) Certainty equivalent model
    (B) Stochastic Reward Valuation model
    (C) Human asset multiplier model
    (D) Present value of future earnings model
53. Which of the following refers to a situation in which the merger of
      companies results in over 25% of the market in the hands of the merged
      companies ?
    (A) ‘Gateway’ condition
    (B) Restrictive practice
    (C) ‘Share of supply’ test
    (D) ‘Asset’ test
54. Which of the following is true ?
    (A) Systematic risk is diversifiable but unsystematic risk is nondiversifiable.
    (B) Systematic risk is nondiversifiable but unsystematic risk is diversifiable.
    (C) Both systematic and unsystematic risks are  diversifiable.
    (D) Both systematic and unsystematic risks are nondiversifiable.
55. Match the following :
           List – I                                         List – II
     (Explanation)                                       (Term)
    (a) It involves using
         the version of
         master file and
         the update
         transactions used
         to create the
         current file to recreate
         the current
         master file if it
         becomes
        damaged.                              (1) Audit Trail Controls
    (b) It involves
         copying the
         whole or a
         portion of the
        database to some
        back up medium, typically
        magnetics tape.                      (2) Dumping
    (c) It stores current
         and historical
        data extracted
        from various
        operations
        systems and
        consolidates for
        management
        reporting and analysis.            (3) Grandfather, Father, Son
    (d) It maintains the
        chronology of
        events that occur
        either to the
        database
        definition or the
        database itself.                       (4) Data warehouse for Accounting
    Codes :
           (a) (b) (c) (d)
    (A) (3) (2) (4) (1)
    (B) (3) (1) (2) (4)
    (C) (1) (3) (2) (4)
    (D) (4) (3) (2) (1)
56. Which one is not a major component of holistic marketing ?
    (A) Relationship marketing
    (B) Integrated marketing
    (C) Internal marketing
    (D) Socially responsible marketing
57. The final step in target marketing is
    (A) Market Analysis
    (B) Market Positioning
    (C) Market Segmentation
    (D) Market Targeting
58. The most recent consideration in product packaging is
    (A) Cost effectiveness
    (B) Product protection
    (C) Product promotion
    (D) Economy
59. Distribution logistics (also termed as ‘market logistics’) does not include
    (A) Distribution channel
    (B) Inventory
    (C) Transportation
    (D) Warehouses
60. Most of the money spent in measuring the effectiveness of advertising is spent on
    (A) Communication-response research
    (B) Pre-testing the advertisements
    (C) Post-testing the advertisements
    (D) Sales-response research
61. Which of the following is not included in the model of the systems
       approach to human resource management ?
    (A) Departmentation
    (B) Recruitment
    (C) Performance Appraisal
    (D) Promotion
62. Which one of the following is not an example of Herzberg’s hygiene factors ?
    (A) Advancement
    (B) Interpersonal relations
    (C) Job security
    (D) Work conditions
63. Which of the following two forms of collective bargaining were identified
       by Chamberlain and Kuhn ?
    (A) Integrative Bargaining and Distributive Bargaining
    (B) Conjunctive Bargaining and Cooperative Bargaining
    (C) Integrative Bargaining and Cooperative Bargaining
    (D) Distributive Bargaining and Conjunctive Bargaining
64. Who observed that a worker’s behaviour and sentiments are closely related ?
    (A) Peter Drucker                  (B) Elton Mayo
    (C) F.W. Taylor                      (D) Dale Yoder
65. What is not an operative function of HRM ?
    (A) Procurement
    (B) Development
    (C) Organising
    (D) Integration
66. The total number of Special Economic Zones notified by the
      Government of India till March 2011 under the SEZ Act, 2005 is
    (A) 154                 (B) 184
    (C) 286                 (D) 386
67. The different forms of IMF assistance are given below. Identify
      the one which is mainly meant for Less Developed Countries (LDCs)
    (A) Credit Tranche Drawing
    (B) Extended Fund Facility
    (C) Compensatory Financing Facility
    (D) Structural Adjustment Facility
68. In the context of globalization, ‘Levitt Thesis’ means
    (A) Standardisation strategy to respond to the worldwide homogenised market
           and expand the market through aggressive low pricing
    (B) Customise products to regional markets
    (C) Customise products to meet the national market
    (D) None of the above
69. Which one of the following is an internal hedging technique ?
    (A) Leading
    (B) Netting
    (C) Both (A) and (B) above
    (D) Swap
70. Business conglomerates have different names in different countries.
      Which country’s conglomerates are called ‘Chaebols’ ?
    (A) Japan
    (B) South Korea
    (C) Germany
    (D) China
71. Mr. X, a non-resident, earned ` 36,000 as interest on German Development Bonds.
     Of this, he received one-sixth in India. The amount to be included as interest for
      the computation of his Gross Total Income is
    (A) ` 36,000                 (B) ` 30,000
    (C) ` 6,000                    (D) Nil
72. Consider the following problem relating to a let-out house property :
      Municipal value – ` 60,000 Fair rent – ` 68,000 Standard rent under the Rent
      Control Act – ` 62,000 Annual Rent received – ` 65,000 The Gross Annual Value
      of the property will be
    (A) ` 68,000               (B) ` 62,000
    (C) ` 65,000               (D) ` 60,000
73. From the following, identify by the web-based financial software :
    (A) Private Equity Software
    (B) Share Accounting Software
    (C) Wealth Management Software
    (D) WINGS 2013
74. Which of the following are true in tax planning ?
    (i) It is futuristic in its approach.
    (ii) It has limited scope compared to tax management.
    (iii) The benefits arising from it are limited particularly in the short run.
    (iv) Its main objective is to reduce the tax liability.
    Codes :
    (A) (i), (ii) and (iii)
    (B) (i) and (ii)
    (C) (i) and (iv)
    (D) (ii), (iii) and (iv)
75. The benefits of debt financing over equity financing are likely to be
      highest in which of the following situations ?
    (A) High marginal tax rates and low non-interest tax benefits
    (B) Low marginal tax rates and low non-interest tax benefits
    (C) High marginal tax rates and high non-interest tax benefits
    (D) Low marginal tax rates and high non-interest tax benefits.