- A feeling of confusion, insecurity and anxiety caused by the strangeness of a new environment is termed as :
(a) Cultural lag
(b) Cultural conformity
(c) Cultural transmission
(d) Cultural shock - The theory of Absolute Cost Advantage was given by :
(a) Paul Krugman
(b) Adam Smith
(c) Eli Heckscher
(d) David Ricardo - India’s foreign trade policy is known as :
(a) EXIT policy
(b) FDI policy
(c) EXIM policy
(d) Monetary policy - Firms that operate internationally are able to :
(a) Earn a greater return from their skills and core competencies
(b) Realize location economies where they can be performed most efficiently
(c) Realize experience curve economies which reduces cost of production
(d) All the above - Which one of the following is not a component of balance of payments ?
(a) Current account
(b) Capital account
(c) Social account
(d) Official settlement account - Which one of the following is not a member of North American Free Trade Agreement NAFTA) ?
(a) Canada
(b) Mexico
(c) Japan
(d) U.S.A. - Which one of the following is not a determinant of foreign investment ?
(a) Political stability
(b) Legal and regulatory framework
(c) Quality education
(d) Size of market - ASEAN Vision 2020 was adopted in :
(a) 1991
(b) 1997
(c) 2000
(d) 2002 - Trade related Intellectual Property Rights doesn’t include ………….. .
(a) Copyrights
(b) Trademarks
(c) Industrial design
(d) Labour laws - ……………….. is director general of the World Trade Organization.
(a) Geeta Gopinath
(b) Roberto Azevedo
(c) Yonov Frederick
(d) Christine Lagarde - Inflation Accounting is an expected solution over the limitations of ………………… assumption.
(a) Historical cost concept
(b) Matching concept
(c) Dual aspect concept
(d) Convention of consistency - Which of the following is not a part of Budget ?
(a) Projected Balance Sheet
(b) Capital expenditure budget
(c) Operating budget
(d) Budget manual - The amount of sales needed to attain a desired profit is calculated by dividing ……… ……….. by the contribution margin ratio.
(a) Fixed cost
(b) Desired profit
(c) Desired profit plus fixed cost
(d) Variable cost - Standard cost is developed by :
(a) Adjusting price level changes in the prices of material and labour etc
(b) Interpolating the market price with the expected profit
(c) Adding the profit margin to actual cost
(d) Incorporating price level changes in market price - A master budget comprises of :
(a) The entire set of budgets prepared
(b) The budgeted cash flow
(c) The budgeted profit and loss account
(d) The budgeted cash flow, budgeted profit and loss statement and budgeted balance sheet - The period of preference shares can not exceed ……………
(a) 20 years
(b) 7 years
(c) 5 years
(d) 8 years - Activity Based Costing brings accuracy and reliability in product cost determination by focussing on ………………….. in the cost incurrence.
(a) Cause and effect relationship
(b) Cost absorption
(c) Cost allocation
(d) Cost apportionment - The budgeted per unit cost data of a toy manufacturing company is :
Material – Rs.18
Labour – Rs. 09
Variable overheads – Rs. 08
Selling price – Rs.50
Budgeted production and sales is 1,50,000 units. Fixed overhead incurred is Rs. 4,00,000.
The total profit, if price is decreased by 25% and volume of sales increase by 30%, is :
(a) Rs. 87,500
(b) Rs. 61,900
(c) Rs. 70,650
(d) Rs. 55,600 - A cash flow statement does not show :
(a) Increase in working capital
(b) Purchase of machine
(c) Whether credit limit is breached
(d) Whether a new loan is availed - An auditor should consult the following document for knowing company’s rules relating to its internal working :
(a) Company’s prospectus
(b) Company’s Memorandum of Association
(c) Annual report
(d) Company’s Articles of Association - What does an inward shift in the production possibility curve indicate ?
(a) Economic recession
(b) Economic growth
(c) Economic stagnation
(d) Hyperinflation in economy - Business economics is essentially ……
(a) Applied microeconomics only
(b) Applied macroeconomics only
(c) Both applied microeconomics and applied macroeconomics
(d) Neither applied microeconomics, nor applied macroeconomics - As we move down along a demand curve with constant slope, the price elasticity of demand :
(a) Remains constant
(b) Increases
(c) Decreases
(d) Multiplies - If elasticity of demand is one (ED = 1), then ………………….. .
(a) MR = AR and AR = MR
(b) MR < 0 and AR = 0 (c) MR > 0 and AR > 0
(d) MR = 0 and AR > 0 - Which of the following is not an assumption of the law of diminishing marginal utility ?
(a) Rationality
(b) Cardinal utility
(c) Homogeneous units of a commodity
(d) Constant production function - Which of the following is not true in case of the law of variable proportions ?
(a) Production technology remains unchanged
(b) Some inputs are kept fixed during production
(c) Possibility of change in factor proportions
(d) Constant returns to scale in all three stages of production - ……………….. shows all combinations of inputs that can be used to produce a given level of output.
(a) Expansion path
(b) Isocost
(c) Isobar
(d) Isoquant - In the short-run, a competitive firm maximises its profit by choosing an output at which price is …………… .
(a) Equal to marginal cost
(b) Greater than marginal cost
(c) Less than marginal cost
(d) Below the average variable cost - The market structure where the monopolist charges different prices for the same commodity is known as ……………………
(a) Natural monopoly
(b) Discriminating monopoly
(c) Legal monopoly
(d) Simple monopoly - A : Degrees of price discrimination were introduced by A.C. Pigou.
B : Under first degree price discrimination consumer surplus is zero.
(a) Only ‘A’ is true
(b) Only ‘B’ is true
(c) Both ‘A’ and ‘B’ are correct
(d) Both ‘A’ and ‘B’ are incorrect - Tax considerations do not enter into the cost of …………… calculation.
(a) Equity
(b) Debt
(c) Preference share
(d) Retained earnings - If the investor invests his money in a particular company and company gets bankrupt, it is said to be ……….
(a) Default risk
(b) Business risk
(c) Market risk
(d) Interest rate risk - Degree of the financial leverage is a measure of relationship between :
(a) EPS and EBIT
(b) EBIT and quantity produced
(c) EPS and sales
(d) EPS and Interest payment - In accept-reject decisions ……………
(a) NPV and IRR methods produce identical results
(b) NPV and IRR methods produce different results
(c) NPV and IRR methdos are indifferent
(d) NPV and IRR never used for evaluation of project - The costliest of long term source of finance is :
(a) Preference share capital
(b) Equity share capital
(c) Retained earnings
(d) Debentures - If the price is Rs.300 and the dividend is Rs.30, what should be the price at which one should sell the stock at the end of one year in order to obtain a rate of return of 40% ?
(a) Rs. 390
(b) Rs. 420
(c) Rs. 450
(d) Rs.370 - Maximising the wealth of the shareholders is reflected in :
(a) Maximising market price of equity shares
(b) Maximising cash balance
(c) Maximising retained earnings
(d) Maximising issued capital - Speculators will buy and, currency through a forward market deal if :
(a) Future spot rate of that currency is expected to be lower than the forward rate
(b) Future spot rate of that currency is expected to be higher than the forward rate
(c) If future spot rate is expected to be equal to the forward rate
(d) Future spot rate of the currency is not expected to be lower than the forward rate - Free land and building given by the host-country Government is ………..
(a) Not included in the initial cash flow
(b) Included in the initial cash flow
(c) Added to the initial cash flow
(d) Not added in the income statement - Euro notes have a maturity of ……
(a) One year or less
(b) More than one year but less than 3 years
(c) More than 3 years but less than 5 years
(d) More than 5 years - If for 10 observations _(x – 20) = 100,then the arithmetic mean is …….. .
(a) 20
(b) 30
(c) 10
(d) 120 - State which of the following statements is true ?
(a) Arithmetic mean is proper representative of the group if the standard deviation is smaller
(b) Arithmetic mean is proper representative of the group if the standard deviation is larger
(c) Arithmetic mean is proper representative of the group irrespective the standard
(d) Deviation Smaller the standard deviation, smaller will be the arithmetic mean - If P(A) = 0.7, P(B) = 0.8,P (A _ B) = 0.3, then P (A’ _ B) = …….
(a) 0.7
(b) 0.1
(c) 0.5
(d) – 0.1 
- The mean and variance of a binomial distribution are 8 and 4 respectively, then the parameters are ………….., ………………. .
(a) n = 8 P = 0.5
(b) n = 4 P = 0.4
(c) n = 16 P = 0.5
(d) n = 16 P = 0.4 - The area under the standard normal curve between the lines at the points –1.96 and+1.96 is ……………. .
(a) 50%
(b) 90%
(c) 95%
(d) 5% - In order to test equality of population means of two groups when their standard deviations are unknown, we use ………………. test.
(a) F
(b) t
(c) z
(d) Chi-square - Analysis of variance technique involves ………………….. .
(a) Computation of variances of different groups
(b) Computation of means and variances of different groups
(c) Splitting of the variance as variation between the samples and also within sample
(d) Preparation of ANOVA table - A research which aims at finding a solution for an immediate problem facing a society or a business organisation is called as ………….. research.
(a) Fundamental
(b) Applied
(c) Analytical
(d) Conceptual - Arrange the following steps in report writing in appropriate order :
(i) Preparation of rough draft
(ii) Logical analysis of the subject matter
(iii) Preparation of the final outline
(iv) Preparation of the final bibliography
(v) Rewriting and polishing of the rough draft
(a) (i), (v), (ii), (iv), (iii)
(b) (ii), (iii), (i), (v), (iv)
(c) (iii), (ii), (v), (iv), (i)
(d) (v), (i), (iii), (ii), (iv) - Conflict has always been considered undesirable so that it should be avoided when possible or resolved soon it occurs. However, ……………. believes that conflict can be helpful or constructive if handled properly.
(a) Scientific management school
(b) Administrative management school
(c) Human relations school
(d) Modern management view - ……………… Bostan Consulting Group (BCG) focus on the following.
(a) Sales, growth of market and whether it absorbs or produces cash in its operations
(b) Technology Development, Sales Development and Product Development
(c) Market development,innovations and sales growth
(d) New business development, New market development and New product development - ……………. pointed out that effective direction depends upon the harmony of objectives.
(a) Peter Drucker
(b) Fredric Taylor
(c) Henry Fayol
(d) Philip Kotler - Increase in supply or in productivity of factors such as financial, labour and material is called :
(a) Factor innovation
(b) Resource innovation
(c) Expansion
(d) Basic innovation - Markov analysis technique is used in Human Resource planning for …………… forecasts.
(a) Long-term
(b) Medium-term
(c) Short-term
(d) Uncertain period - Business ethics and effective corporate Governance result in …… .
(a) Short-term profit maximizaion
(b) Reduced taxes
(c) Wealth maximisation
(d) Monopoly - ……………….. is not the form/scheme of workers participation in management.
(a) Works committees
(b) Joint management councils
(c) Employee directors on the board of directors
(d) Board of Directors - ……………… is a process of guiding and counselling the employee to familiarize him with job situations.
(a) Rank and File Job Training
(b) Supervisory Training
(c) Induction Training
(d) Craft Training - In ……………….. type of leadership the leader’s job is primarily of a moderator, even though he makes the final decision and he alone is responsible for the results.
(a) Autocratic Dictatorial leadership
(b) Participative or Democratic leadership
(c) Laissez faire or free-reign leadership
(d) (a) and (c) - ………………… is the process of determining the task involved in the job and personal qualities of the individuals required to perform it.
(a) Job analysis
(b) Job description
(c) Job evaluation
(d) Job enrichment - The major player in the Indian money market is ……………………. .
(a) Co-operative banks
(b) Indigenous banks
(c) Commercial banks
(d) Reserve Bank of India - Which of the following is not the principal function of the RBI ?
(a) Bankers Bank
(b) Currency issue
(c) Government’s Bank
(d) Bankers to the local self government - The safest form of crossing is …… .
(a) General crossing
(b) Special crossing
(c) Double crossing
(d) A/c payee crossing - The bank through which the issuing bank arranges to advice the letter of credit to the beneficiary is called as …………………… .
(a) Bank of issue
(b) Advising bank
(c) Payee bank
(d) Authorised bank - ……………….. is financing and maintenance of book debts by another party.
(a) Del-credere contract
(b) Debt brokerage
(c) Factoring
(d) Bill discounting - All the exchange rates quoted on the screen or in print are for …….. unless otherwise mentioned.
(a) Spot transactions
(b) Forward transactions
(c) Cash transactions
(d) Tom transactions - Merchant bankers are ……………. .
(a) Financial brokers
(b) Financial intermediaries
(c) Credit appraisers
(d) Underwriters - The committee which recommended establishment of data warehouse is……………………… .
(a) Vasudevan Committee
(b) Rangarajan Committee
(c) Saraf Committee
(d) Shere Committee - The Basel Committee on Banking supervisory authorities was established by………………….. .
(a) The Central bank governors of the group of ten countries
(b) European countries
(c) India
(d) U.S.A. - The ratio of shareholders funds to the total assets measures that shifts in the ratio of owned funds to total funds is …………………… .
(a) Economic equity ratio
(b) Fund based ratio
(c) Total asset ratio
(d) Liquidity ratio - Marketing refers to ………………..
(a) Social and managerial process of anticipating, identifying and satisfying customer requirements profitably
(b) Managerial process of measuring customers requirements
(c) Process of creating demand for goods and services made available in the market
(d) Process of collecting and analysing data related to future requirements of customers - Demand going up and down with time upsetting alignment with supply is known as………………. .
(a) Excess
(b) Declining
(c) Latent
(d) Fluctuating - The customer orientation implies …………………………. .
(a) Selling goods/services at moderate price to customer
(b) Giving priority to profit vis-avis the customer needs
(c) Applying cafeteria approach for production
(d) Ability to think like and act like customer - Skimming Price Strategy is appropriate when ………………… .
(a) Product is differentiated and competition is normal
(b) Customers are sensitive to price
(c) Customers are price insensitive to a given value and they wish to buy
(d) Product is new and innovative - Distribution logistics refers to …… .
(a) All activities that accomplish delivery of the end product to the channels as well as the consumer
(b) Physical flow of the product from product development to production
(c) Transportation, warehousing and inventory management
(d) Attempt to create value to product - The maturity stage of PLC is characterised by ………………….. .
(a) Growth in absolute sales and sales growth rate starts declining
(b) The number of sales declined,growth rate turns negative
(c) Growth in absolute sales and sales growth rate remaining constant
(d) Growth in absolute sales and sales growth rate increasing at an increasing rate - Arrangement for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumer is known as …………………………
(a) Marketing mix
(b) Marketing planning and strategy
(c) Marketing process
(d) Market positioning - ……………. is a set of procedures and sources, managers use to obtain everyday information about developments in the marketing environment.
(a) Database system
(b) Marketing intelligence system
(c) Enterprise resource planning system
(d) Marketing research system - Different customer groups pays different prices for the same goods and services, (e.g. Railway concession to students and senior citizens) it is the example of ……. .
(a) Customer segmentation price
(b) Product form pricing
(c) Optional pricing
(d) Time pricing - ………………… enables one to have comparison of quality and price.
(a) Standardisation
(b) Grading
(c) Labelling
(d) Branding - In the words of ………………., ‘‘Law is the body of principles recognized and applied by the state is the administration of justice’’.
(a) Salmond
(b) Woodrow Wilson
(c) Sir William Anson
(d) Pallock - The President of India has given his assent to legislation on Central Goods and Service Tax on ………… .
(a) 12th April, 2017
(b) 27th March, 2017
(c) 29th March, 2017
(d) 30th April, 2017 - Section 8 of the RTI Act, 2005 deals with the ………………………. .
(a) Exemption from Disclosure of Information
(b) Disposal of request
(c) Penalties
(d) Appeal - Intellectual Property Right (IPR) protects the use of information and ideas that are of …………………. .
(a) Ethical value
(b) Monetary value
(c) Social value
(d) Commercial value - What is the validity of challan in Form GST PMT-06 ?
(a) 1 day
(b) 5 days
(c) 15 days
(d) Forever - According to Section 3 of the ……..a minor is a person who has not completed eighteen years of age.
(a) Indian Majority Act, 1875
(b) Indian Contract Act, 1872
(c) Indian Companies Act, 2013
(d) Indian Juvenile Justice Act,1986 - 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 - 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 - The cartel is defined u/s …………… of the Competition Act, 2002.
(a) 2(c)
(b) 2(f)
(c) 2(h)
(d) 2(i) - Which section of the RTI Act, 2005 deals with obligation of Public authorities ?
(a) Sec. 6
(b) Sec. 7
(c) Sec. 4(1)
(d) Sec. 8 - When income of previous year is not taxable in the immediately following assessment year ?
(a) Shipping business of resident
(b) Shipping business of nonresident
(c) Non-government organisation of foreign country
(d) Non-government organisation of India - Which of the following income is not taxable under Income Tax Act,1961 ?
(a) Income of Maharashtra State Road Transport Corporation (MSRTC)
(b) Income of Maharashtra Government Milk Scheme
(c) Income of Maharashtra Tourism Development Corporation (MTDC)
(d) Income of Maharashtra State Financial Corporation (MSFC) - Gift of Rs. 2,00,000 received by employee through account payee cheque from employer is taxable under the head :
(a) Income from salary
(b) Income from other sources
(c) Exempt from Income Tax
(d) Income exempt upto Rs. 50,000 and balance taxable under the head ‘Income from other sources’ - An industrial undertaking has acquired and installed a machinery costing Rs.60,00,000 on 3rd October,2018. The assessee has fulfilled the conditions specified in Section 32(iia) of the Income Tax Act, 1961. Then additional depreciation for A. Y. 2019-20 will be :
(a) Rs. 6,00,000
(b) Rs. 9,00,000
(c) Rs. 4,50,000
(d) Rs. 12,00,000 - When net annual value of a house property can be negative –
(a) Deduction under Section 24 are more than income
(b) When municipal taxes paid by the owner are more than gross annual value
(c) When house property is self occupied
(d) When the house property was vacant throughout the year - Mr. Rajendra purchased a plot of land in Pune for Rs. 70,00,000 on 5th July 2012. He constructed a residential house on this plot, which was completed on 8th October, 2015. The cost of construction was Rs. 50,00,000. The entire house structure was sold for Rs. 10,00,000 on 6th August, 2017, which includes Rs. 1,50,00,000 for land and balance for the superstructure. What can be the capital gain on sale of house for the A. Y. 2018-19 ? C.I.I. for previous years 2012-13, 2015-16 and 2017-18 is 200, 254, 278 respectively.
(a) Rs. 64,80,000
(b) Rs. 90,00,000
(c) Rs. 0,00,000
(d) Rs. 80,00,000 - . ……………….. is a section related to clubbing of income under Income Tax Act, 1961.
(a) Section 60-63
(b) Section 60-69
(c) Section 60-64
(d) Section 60-61 - Income from Farmhouse is :
(a) Agricultural income
(b) Income from house property
(c) Exempted capital gain
(d) Income from other sources - Apex Ltd, a manufacturing company has installed a machinery costing Rs. 100,00,000 in a factory for research and development and charged as an expense under section 35 of Income Tax Act, 1961 but used that machinery for manufacturing of regular products. Then it will be considered as :
(a) Tax management
(b) Tax planning
(c) Tax avoidance
(d) Tax evasion - A non-corporate assessee is required to pay advance tax at ……………. of estimated taxable income, on or before 15th December.
(a) 45%
(b) 30%
(c) 15%
(d) 75%Answer Key
1 (d) 2 (b) 3 (c) 4 (d) 5 (c) 6 (c) 7 (c) 8 (b) 9 (d) 10 (b) 11 (a) 12 (d) 13 (c) 14 (a) 15 (d) 16 (a) 17 (a) 18 (a) 19 (c) 20 (d) 21 (a) 22 (a) 23 (c) 24 (d) 25 (d) 26 (d) 27 (d) 28 (a) 29 (b) 30 (c) 31 (a) 32 (a) 33 (a) 34 (a) 35 (b) 36 (a) 37 (a) 38 (b) 39 (a) 40 (a) 41 (b) 42 (a) 43 (c) 44 (b) 45 (c) 46 (c) 47 (b) 48 (c) 49 (b) 50 (b) 51 (d) 52 (a) 53 (b) 54 (a) 55 (a) 56 (c) 57 (d) 58 (c) 59 (b) 60 (a) 61 (c) 62 (d) 63 (d) 64 (b) 65 (c) 66 (a) 67 (b) 68 (a) 69 (a) 70 (a) 71 (a) 72 (d) 73 (d) 74 (c) 75 (a) 76 (b) 77 (d) 78 (b) 79 (c) 80 (b) 81 (a) 82 (a) 83 (a) 84 (d) 85 (c) 86 (a) 87 (a) 88 (a) 89 (a) 90 (c) 91 (b) 92 (b) 93 (a) 94 (d) 95 (b) 96 (a) 97 (c) 98 (a) 99 (c) 100 (d)