The _________ concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do.
(a) Selling
(b) Production
(c) Product
(d) Marketing
The main objective of Accounting Standards is:-
(a) To harmonise the diversified accounting practices.
(b) To prepare the accounting reports which is easily understood by common man.
(c) To comply with the requirements of the International Accounting Standards (IAS)
(d) To comply with the legal formalities
What is customer value?
(a) Excess of satisfaction over expectation
(b) Post purchase dissonance
(c) Ratio between the customers perceived benefits and the resources used to obtain these benefits.
(d) None of the above
Approximately what percentage of scores fall within one standard deviation of the mean in a normal distribution?
(a) 99%
(b) 34%
(c) 68%
(d) 95%
Which of the following is a characteristic of qualitative research?
(a) Inductive analysis
(b) Design flexibility
(c) Context sensitivity
(d) All of the above
Railroads were once operated based on the thinking that users wanted trains rather than transportation, overlooking the challenge of other modes of transportation. This reflects the ___________.
(a) Product concept
(b) Societal marketing concept
(c) Marketing concept
(d) Production concept
What is the standard deviation of a sampling distribution called?
(a) Sampling error
(b) Simple error
(c) Standard error
(d) Sample error
If price of any commodity decreases by 20% and the demand for that commodity increases by 40%, than elasticity of demand would be:-
(a) Perfectly elastic
(b) Perfectly inelastic
(c) Unit elastic
(d) Highly elastic
The comparative Cost Advantage Theory was given by:-
(a) Adam Smith
(b) David Ricardo
(c) Raymond Vernon
(d) Michael E. porter
The biggest or greatest amount of involvement in a foreign market comes through which of the following?
(a) Joint venturing
(b) Exporting
(c) Direct investment
(d) Licensing
Which one of the following provides limited liability for all of its owners?
(a) Partnership with both general and limited partners
(b) Sole proprietorship
(c) Corporation
(d) Partnership with only general partners
Full details for the issue of ADRs by a company must be furnished within 30 days
(a) Reserve Bank of India (RBI)
(b) Securities and Exchange commission (SEC)
(c) Company Law Board (CLB)
(d) Securities and Exchange Broad of India (SEBI)
If the net present value of project A is +$80, and of project B is +$60, then the net present value of the combined project is:-
(a) +$140
(b) +$60
(c) +$80
(d) None of the options
Interest Rate Risk is a:-
(a) Internal Risk
(b) Unsystematic Risk
(c) Systematic Risk
(d) None of the above
If a company’s objective were to reach masses of buyers that were geographically dispersed at a low cost per exposure, the company would likely choose which of the following promotion forms?
(a) Advertising
(b) Public relations
(c) Personal selling
(d) Sales promotion
What is Euro Bond?
(a) A bond issued in Europe Market
(b) A bond which can converted in to American bond
(c) A bond which is issued in the host market
(d) A bond issued in a currency other than the currency of the country or market in which it is issued
A ________________ is a promotion strategy that calls for using the sales force and trade promotion to move the product through channels.
(a) Integrated strategy
(b) Push strategy
(c) Pull strategy
(d) Blocking strategy
A bank expects fall in price of a security if it sells it in the market. What is the risk that the bank is facing?
(a) Credit risk
(b) Operational risk
(c) Market risk
(d) Asset Liquidation risk
The median is ______
(a) The highest number
(b) The middle point
(c) The average
(d) Affected by extreme scores
Which research includes all types of researches into human motives when it refers to qualitative research designed to uncover the consumer’s subconsciousness or hidden motivations?
(a) Managerial research
(b) Price research
(c) Motivational research
(d) Marketing research
Sampling distribution of mean is very close to the standard normal distribution when:-
(a) Population is not normally distributed, but sample size is large
(b) Population is normally distributed
(c) Both (A) and (B).
(d) Neither (A) and (B)
SHCIL performs:-
(a) Depository services
(b) Manufacturing function
(c) Marketing function
(d) Financial Function
Consumer goods with unique characteristics or brand identification often requiring a special purchase
(a) Effort are called:-
(b) Specialty products
(c) Shopping products
(d) Convenience products
(e) Custom products
Which of the following is not an example of a nonrandom sampling technique?
(a) Purposive
(b) Quota
(c) Convenience
(d) Cluster
The ratio of riskless cash flow to risky cash flow is known as:-
(a) Risk adjusted discount ratio
(b) Sensitivity ratio
(c) Certainty equivalent coefficient
(d) Coefficient of variation
Open-ended questions provide primarily ______ data
(a) Qualitative data
(b) Confirmatory data
(c) Predictive data
(d) None of the above
A transaction where financial securities are issued against the cash flow generated from a pool of assets is called:-
(a) Total Return Swaps
(b) Securitization
(c) Credit Linked Notes
(d) Credit Default Swaps
What is the median of the following set of scores?
18, 6, 12, 10, 14 ?
(a) 14
(b) 12
(c) 10
(d) 18
When a loan will be NPA?
(a) Bill remains overdue for more than 90 days
(b) Interest and / or loan installment overdue for more than 90 days
(c) Account is out order for more than 90 days in case of overdraft/cash credit.
(d) All of the above.
The statistical tool used to measure a company’s risk is:-
(a) Variance
(b) Mode
(c) Mean
(d) Co-variance
The process of drawing a sample from a population is known as _________
(a) Census
(b) Survey research
(c) Sampling
(d) None of the above
A graph that uses vertical bars to represent data is called a ____
(a) Line graph
(b) Scatterplot
(c) Vertical graph
(d) Bar graph
Profitability index is the ratio of:-
(a) Present value of cash flow to IRR
(b) Net present value cash flow to initial investment
(c) Present value of cash flow to initial investment
(d) Net present value of cash flow to IRR
Which of the following capital budgeting methods has the value additive property?
(a) Payback period
(b) IRR
(c) Discounted payback period
(d) NPV
The standard deviation is:-
(a) The square root of the variance
(b) An approximate indicator of how numbers vary from the mean
(c) A measure of variability
(d) All of the above
A task Force has recommended the creation of a National Fund for Strategic Agriculture. Who headed this Task Force?
(a) Sharad Pawar
(b) M.S. Swaminathan
(c) P. Chidambaram
(d) None of the above
Section 32 of Income Tax Act 1961 deal _________.
(a) Dividend
(b) Depreciation
(c) Reserve
(d) Provision
___________ is a set of elements taken from a larger population according to certain rules
(a) Statistic
(b) Element
(c) Sample
(d) Population
Which of the following cannot be a consideration in forming a dividend policy?
(a) Shareholders expectation
(b) Access to capital market
(c) Stable dividends
(d) Capital
The value of the bond depends on:-
(a) Years to maturity
(b) Expected yield to maturity
(c) The coupon rate
(d) All the above
Default risk is lower in:-
(a) ICICI Bonds
(b) IDBI Bonds
(c) Treasury bills
(d) Government bonds
The _______ is often the preferred measure of central tendency if the data are severely skewed.
(a) Mean
(b) Median
(c) Range
(d) Mode
The financial risk considers the difference between the:-
(a) Revenue- EAI
(b) Revenue- EBIT
(c) EAIT-EAI
(d) EBIT-EBT
In the New Industrial Policy 1991, the government had clarified that it would permit 100% foreign equity in high priority industries in case.
(a) Entire output way exported
(b) Produced goods should not be luxury goods
(c) Such industries would not use imported good in the production process
(d) None of the above
SDRs are popularly known as:-
(a) Paper Gold
(b) Currency Notes
(c) Silver Coin
(d) Gold Coin
When interest rates go up, prices of fixed interest bonds:-
(a) Go up
(b) Go down
(c) Remain unchanged
(d) It will go up certain time then it will come down
Transaction of Internet Banking excludes:-
(a) Transfer of funds from one account to another account
(b) Withdrawal of cash anywhere in India.
(c) Balance enquiry
(d) Statement of account for a specific period
The expectations theory states that the forward interest rate is the:-
(a) Expected future spot rate
(b) Always greater than the spot rate
(c) Yield to maturity
(d) None of these option
The situation in which a seller takes the maximum price which the consumer is willing to pay for the product is called:-
(a) Skimming Pricing
(b) Penetration Pricing
(c) What the traffic can bear
(d) None of the above
Long term agricultural finance is provided by:-
(a) Land development bank
(b) Land mortgage bank
(c) Agricultural co-operation bank
(d) None of these
Which of the following software has applications in both Mathematics and Statistics?
(a) SPSS
(b) R
(c) SAS
(d) None of the above
Large Government borrowing can cause yield curve to shift upward:-
(a) Remains same
(b) Difficult to say
(c) False
(d) True
Deregulation and globalization of the financial markets increase the volatility in:-
(a) Exchange rates
(b) Prices of financial assets
(c) Interest rates
(d) All of the above
The Market value of the firm is the results of:-
(a) Capital Budgeting Decision
(b) Dividend Decisions
(c) Trade-off between risk and return
(d) Trade-off between cost and risk
Donation to National Children’s fund will come in which of the following deduction under sec. 80G of Income Tax Act, 1961
(a) 100 percent deduction subject to qualifying limit
(b) 100 percent deduction without any qualifying limit
(c) 50 percent deduction subject to qualifying limit
(d) 50 percent deduction without any qualifying limit.
Systemic risk is the risk due to:-
(a) Failure of two banks simultaneously due to bankruptcy of one bank
(b) Failure of a bank, which is not adhering to regulations
(c) Failure of entire banking system
(d) Where a group of banks fail due to contagion effect
The full form of DAGMAR is:-
(a) Defining Advertising Goals for Measured Advertising Results
(b) It is a quality mark
(c) Drastic Advertising Goals Measurement and Results
(d) None of these
___________ are used when you want to visually examine the relationship between two quantitative variables
(a) Scatterplots
(b) Line graphs
(c) Bar graphs
(d) Pie graphs
Which sector produced non-importable commodity?
(a) Railway
(b) Roadways
(c) Electricity
(d) Both (a) and (b)
Identify the uncontrollable risk of a company
(a) Cut in subsidy
(b) Technological obsolescence
(c) Labour problem
(d) Increase in loan service charges
Return on equity is equal to:-
(a) Earnings per share/book equity per share
(b) Book value/earnings per share
(c) Price/earnings per share
(d) 1 Xpayout ratio
What is the defining characteristic of experimental research?
(a) Manipulation of the independent variable
(b) Resistance to manipulation
(c) The use of open-ended questions
(d) Focuses only on local problems
Gross Domestic Product is a logical factor to analyze the economy in picking up a stock because it indicates:-
(a) Status of the economy
(b) Market value of assets
(c) Inflation
(d) Condition of the stock market
The current price is Rs.100, the required rate of return is 20% and the dividend paid on a share of Rs.10 face value is Rs.3. What is the expected growth rate?
(a) 18%
(b) 16%
(c) 17%
(d) 15%
A variable that is presumed to cause a change in another variable is called a (n):-
(a) Dependent variable
(b) Categorical variable
(c) Intervening variable
(d) Independent variable
Suppose a preferred stock’s annual dividend is of Rs.3 and required rate of return is 15 per cent, what is its worth today?
(a) Rs.20
(b) Rs.25
(c) Rs.15
(d) Rs.30
Mr. X expects 20 per cent return from his investment. The dividend from the Y stock is Rs 2.0 and the present price is Rs.50. What should be the future price of the stock?
(a) Rs 60.0
(b) Rs 55.33
(c) Rs 58.0
(d) Rs 63.33
An interest rate swap involves a division of the spread differential. This division is done on the following basis:-
(a) Based on negotiations
(b) Based on the prevailing interest rates.
(c) The higher credit rated company gets a proportionately higher share
(d) Equally
Which one of the following represents a potential agency problem?
(a) Paying a management bonus based on the number of employees managed
(b) Paying all company earnings out to shareholders in the form of dividends
(c) Adherence to the Sarbanes-Oxley Act in 2002
(d) Hiring a manager and compensating her with shares of company stock
Currency swaps involving US$ and Indian rupees are done by:-
(a) Making receiving net payments in terms of swap in the currency agreed to with the intermediary bank
(b) Payments made in US$ and receipts in Indian rupee
(c) Payments made in Indian rupee and receipts in US$
(d) None of the above
Currency swaps are done:-
(a) For exploiting interest rate differences
(b) For meeting needs of currency exposure
(c) None of the above is right
(d) Both (a) and (b) are right
Minimum Alternative Tax deals the Section _________
(a) 115IB
(b) 115P
(c) 115JB
(d) 115O
Which of the following best describes quantitative research?
(a) Research that is exploratory
(b) The collection of non numerical data
(c) Research that attempts to generate a new theory
(d) An attempt to confirm the researcher’s hypotheses
The government made a cut in the interest rate by 25 basis points. This means there is a change of:-
(a) 25%
(b) 0.25%
(c) 0.025%
(d) 2.5%
Landing Charges is calculated on the basis of __________.
(a) FOB
(b) Selling Price
(c) CIF
(d) Above All
An interest rate swap with a swap quote involves:-
(a) Payment of fixed rate interest or vice versa
(b) Will succeed regardless of interest rate movements
(c) Depositing a notional principal and getting a loan against it
(d) None of the above is right
An interest rate swap is possible:-
(a) When the spreads are not uniform
(b) When interest rates are rising
(c) When the fixed rate is more than the floating rate
(d) When the floating rate is more than the fixed rate
A condition or characteristic that can take on different values or categories is called ___
(a) a cause-and-effect relationship
(b) a variable
(c) a constant
(d) a descriptive relationship
Which of the following statements is most consistent with expectations theory?
(a) If short-term rates are equal to long-term rates, then investors must be expecting short-term rates to rise
(b) If short-term rates are higher than long-term rates, then investors must be expecting short-term rates to rise
(c) If short-term rates are lower than long-term rates, then investors must be expecting short-term rates to rise
(d) None of these options
You are a charitable organization that plans to provide $100,000 per year in perpetuity to needy children. How much would a donor need to provide today to fund this goal? Assume that the first payment out of the charitable organization will start one year from today. The interest rate is 10%.
(a) $10,000,000
(b) $1,000,000
(c) $100,000
(d) $111,000
Section 40 (b) of Income Tax Act 1961 deals with __________.
(a) Remuneration to Partners
(b) Depreciation
(c) Assessment
(d) Business Income
Mr.A is a daring portfolio manager. He wants to increase the return of his portfolio. He should choose stocks from a:-
(a) Industry in the maturity period
(b) Defensive industry
(c) Industry with more export potential
(d) Industry at a growth stage
A stock of Rs.10 face value has declared 35% dividend for the current year. The stock is currently selling for Rs.40. What is its dividend yield?
(a) 8.5%
(b) 70%
(c) 8.75%
(d) 35%
When referencing other works you have cited within the text of the report you should:-
(a) Use an asterisk and a footnote
(b) Use the author, date citation method
(c) State the first and last name of the author
(d) Insert the complete citation in parenthesis
Which of the following sampling methods is the best way to select a group of people for a study if you are interested in making statements about the larger population?
(a) Random sampling
(b) Quota sampling
(c) Convenience sampling
(d) Purposive sampling
Which district is coming under category B industrial backward district as per income tax act?
(a) Wayanad
(b) Jaisalmer
(c) Nalanda
(d) Vaishali
If the company’s net profit is Rs.240 million and equity capital Rs.240 million with the face value of shares equivalent to Rs.2, what is the earning per share?
(a) Rs.1
(b) Rs.3
(c) Rs.2.5
(d) Rs.2
Under the Custom Act Section 25 (1) dealing _________.
(a) Classification
(b) Demand
(c) Exemptions
(d) Refund
Section 35 AD is applicable to which Business sector?
(a) Shipping
(b) Textile
(c) Software
(d) Housing Project
Show Cause Notice is a concept relating to:-
(a) Appeal
(b) Refund
(c) Rebate of excise duty
(d) Demand
If the average annual rate of return for common stocks is 13% and 3.8% for treasury bills,what is the average market risk premium?
(a) 13%
(b) 10%
(c) 9.2%
(d) 3.8%
A debenture of face value of As. 100 carries a coupon of 15%. If the current yield is 12.5%. What is the current market price?
(a) Rs.125
(b) Rs.120
(c) Rs.150
(d) Rs.100
A company cost of capital is quoted as 8%. The book value of debt and equity was used in the calculation. Which of the following adjustments to the calculation is most likely to cause an increase in the cost of capital?
(a) Market value of debt and equity are both used
(b) Market value of equity is used
(c) There will be no change
(d) Market value of debt is used
A firm has an average investment of $1,000 during the year. During the same time the firm has an after tax earnings of $120. If the cost of capital is 10%, what is the EVA?
(a) $55
(b) $20
(c) $120
(d) $100
A bank suffers loss due to adverse market movement of a security. The security was however held beyond the defeasance period. What is the type of the risk that the bank has suffered?
(a) Operational Risk
(b) Market Liquidation Risk
(c) Market Risk
(d) Credit Risk
Degree of financial leverage (DFL) expresses the relationship between:-
(a) EPS and EBIT
(b) EPS and EAIT
(c) EPS and P/E
(d) EPS and sales
Which of the following techniques can be used to manage earnings?
(a) Defer positive NPV projects
(b) Decrease discretionary spending in R&D
(c) Reject positive NPV projects
(d) All of these options
What would happen (other things equal) to a confidence interval if you calculated a 99 percent confidence interval rather than a 95 percent confidence interval?
(a) It will be narrower
(b) The sample size will increase
(c) It will not change
(d) It will become wider
A company declares Rs.2/- dividend on the equity share of face value of Rs. 5/-. The share is quoted in the market at Rs.80/- the dividend yield will be ________
(a) 4%
(b) 2.5%
(c) 40%
(d) 20%
The protest is relating to ________.
(a) Income Tax
(b) VAT
(c) Custom Duty
(d) Excise Duty
