Gujarat 2016 September Commerce – Paper  II

  1. ……….expenditure is concerned with all current expenditure of the government on administration.
    (a) Revenue Expenditure
    (b) Capital Expenditure
    (c) Total Expenditure
    (d) None of the above
  2. The credit of investing the word privatization goes to the famous author:
    (a) Henri Fayol
    (b) Peter F. Drucker
    (c) Abraham Maslow
    (d) Mikhail Gorbachew
  3. The concept of small scale industries was introduced by the………..
    (a) Industrial Policy Resolution 1948
    (b) Industrial Policy Resolution 1956
    (c) Industrial Policy Resolution 1977
    (d) None of the above
  4. The present status of Indian Economy is the example of………
    (a) Capitalist Economy
    (b) Closed Economy
    (c) Mixed Economy
    (d) None of the above
  5. Match the items of List I With the items of List II and select the correct answer using the codes given below the lists:
    List I  List II
    (a) Capital Reserve  (i) Uncommitted Reserve
    (b) Reserve Capital  (ii) Uncalled share capital
    (c) General Reserve (iii) Profit on re-issue of forfeited shares
    (d) Specific Reserve (iv) Sinking fund

    Codes:
    a, b, c, d
    (a) ii, i, iii, iv
    (b) i, iii, iv, ii
    (c) iii, ii, i, iv
    (d) iii, i, iv, ii

  6. What is correct sequence of the following stages in accounting process?
    (a) Posting
    (b) Journalizing
    (c) Balancing
    (d) Summarizing
    Select the correct answer from the codes given below:
    (a) d, a, b, c
    (b) c, b, a, d
    (c) b, a, c, d
    (d) a, c, d, b
  7. Amount set part to meet losses due to bad debts is a:
    (a) Liability
    (b) Asset
    (c) Reserve
    (d) Provision
  8. Costs which are directly dependent on the volume of output or service are called:
    (a) Fixed costs
    (b) Variable costs
    (c) Semi-variable costs
    (d) Semi- fixed costs
  9. Statements I : The demand for a commodity refers to the quantity of the commodity demanded at a certain price during any particular period of time.
    Statements II : Contraction of demand is the result of increase in the price of the commodity concerned.
    (a) Both I and II are correct
    (b) Both I and II are Incorrect
    (c) I is correct and II is incorrect
    (d) II is correct and II is incorrect
  10. Match the items of List I With the items of List II and select the correct answer using the codes given below the lists:
    List I  List II
    (a) Administered price  (i) Landed cost of imports
    (b) Parity Pricing (ii) Liberalized economy
    (c) Competitive price (iii) Public enterprise
    (d) Discriminating price (iv) Fixed by government

    Codes:
    a, b, c, d
    (a) i, ii, iii, iv
    (b) ii, iii, iv, i
    (c) iii, iv, ii, i
    (d) iv, ii, i, iii

  11. A perfectly competitive market is characterized by:
    (a) Very large number of buyers and seller
    (b) Homogeneous product
    (c) Free- entry and exit of firms
    (d) All of the above
  12. In a unimodel and symmetrical distribution, the relationship between averages is like this:
    (a) Mean > Median > Mode
    (b) Mean < Median <Mode
    (c) Mean = Median = Mode
    (d) Mean < Median > Mode
  13. Match the items of List I With the items of List II and select the correct answer using the codes given below the lists:
    List I  List II
    (a) Random sample selection (i) Tabulation
    (b) Arranging data in columns and rows  (ii) Questionnaire
    (c) Measures of central tendency  (iii) Lottery method
    (d) Data collection  (iv) Analysis of data
    (e) Dividing into homogeneous groups  (v) Classification

    Codes:
    a, b, c, d, e
    (a) i, ii, iii, iv, v
    (b) iv, iii, ii, v, i
    (c) ii, iv, i, iii, v
    (d) iii, v, iv, ii, i

  14. The probability of rejecting the Null Hypothesis, when it is true, is called:
    (a) Type – I error
    (b) Type – II error
    (c) Probable error
    (d) Standard error
  15. E-marketing is:
    (a) Buying and selling of goods and services through internet
    (b) Buying of goods through internet
    (c) Selling of goods through internet
    (d) All of the above
  16. Match the items of List I With the items of List II and select the correct answer using the codes given below the lists:
    List I  List II
    (a) Standardization and simplification  (i) It is essential to set the standards task which an average workers should be during working day
    (b) Scientific task selling  (ii) Under this, there are two work rates, one is lower and another is higher
    (c) Functional foreman ship  (iii) The management must carry out work standardize and simplify work in order to increase efficiency
    (d) Differential piece rate plan (iv) It is purpose is to improve the quality of supervision of workers by employing some specialists

    Codes:
    a, b, c, d
    (a) iii, i, iv, ii
    (b) iv, i, ii, iii
    (c) iv, iii, i, ii
    (d) iii, iv, i, ii

  17. In an electrical goods manufacturing company, there are four main activities Marketing, production, Finance and Personnel. The general manager is planning to structure the organization. Which type of organization structure should be adopted?
    (a) Formal organization structure
    (b) Functional organization structure
    (c) Informal organization structure
    (d) Divisional organization structure
  18. Which of the following statements is correct?
    (a) Behavioral theories of leadership are also known as transactional theories.
    (b) Situational theories of leadership are based on the belief that great leaders are made, not born.
    (c) Management theories of Leadership focus on the role of supervision, organization and group performance.
    (d) None of the above
  19. Role of Marketing has become vital because of changes and increased……
    (a) Technology
    (b) Competition
    (c) Both a and b
    (d) None of the above
  20. Advertising creates……among customers.
    (a) Awareness
    (b) Clarity
    (c) Confusion
    (d) Positive effects
  21. Price of a product affects its…….
    (a) Demand
    (b) Production
    (c) Customer
    (d) All of the above
  22. Capital Budgeting is also known as…………….
    (a) Investment Decision making
    (b) Capital Expenditure Decision
    (c) Planning Capital Expenditure
    (d) All of the above
  23. Which of the following terms is used to represent the proportionate relationship between debt and equity?
    (a) Cost of Capital
    (b) Capital Budgeting
    (c) Assets Structure
    (d) Capital Structure
  24. Which one is not an important objectives of Financial Management?
    (a) Profit Maximization
    (b) Wealth Maximization
    (c) Value Maximization
    (d) Maximization of Social Benefits
  25. What are the benefits of Human resource Planning?
    (a) Expand the personal management information base to assist other personal activities and other organizational units
    (b) Make major demands on local labour markets successfully
    (c) Coordinate different personal management programmes suck as affirmative action plans and living needs
    (d) All of the above
  26. Productivity means:
    (a) An act of increasing the knowledge and skills of an employee for doing a particular job
    (b) Using the minimum amount of resources needed to produce goods and services
    (c) One’s skills, abilities in meeting the needs of the job which one is holding currently
    (d) The ratio of an organization’s output to its inputs
  27. A scheme for workers participation in industry at the shop floor and plant levels was introduced in:
    (a) October, 1970
    (b) October, 1975
    (c) October, 1985
    (d) October, 1978
  28. International Bank for Reconstruction and Development is:
    (a) Exim Bank
    (b) IMF
    (c) World Bank
    (d) Ministry of corporate Affairs
  29. Bank Rate is determined by:
    (a) Ministry of finance
    (b) State Bank of India
    (c) Reserve Bank of India
    (d) Ministry of Corporate Affairs
  30. Credit policy of Government of India is declared by:
    (a) State Bank of India
    (b) IMF
    (c) Ministry of finance
    (d) RBI
  31. ……… is the promoter of CRISIL.
    (a) ICICI
    (b) IFCI
    (c) IDBI
    (d) None of the above
  32. Arbitrage take advantage of:
    (a) Different Exchange rates in some market
    (b) Same Exchange rate in different market
    (c) Different Exchange rates in different market
    (d) All of the above
  33. Geometric firm is a MNC that maintains a balance between?
    (a) Home market and local market oriented policies
    (b) Domestic market and regional market oriented policies
    (c) Home market and host market oriented policies
    (d) Local market, domestic market and regional market oriented
  34. What is Euro-IV?
    (a) European Currency
    (b) British Currency
    (c) European Football Festival
    (d) Pollution Control Norms
  35. Sectoral disequilibrium :
    (a) Is a type of disequilibrium in the balance of payment
    (b) Is not a type of disequilibrium in the balance of payment
    (c) Is a type of cyclical disequilibrium in the balance of payment
    (d) Is a type of structural disequilibrium in the balance of payment
  36. Indian Accounting Standard (AS 3) is related with:
    (a) Depreciation Accounting
    (b) Segment Reporting
    (c) Cash flow Statement
    (d) Disclosure of Accounting policies
  37. Under the CCA method, the difference between replacement cost of asset and historical cost of assets is known as:
    (a) Realized Holding Gain
    (b) Unrealized Holding Gain
    (c) Realized Profit
    (d) Unrealized Profit
  38. Cash flow statements is based on……… of accounting.
    (a) Accrued basis
    (b) Cash basis
    (c) Both a and b
    (d) Working capital basis
  39. Distributional activities involves decisions regarding:
    (a) Channels of Distribution
    (b) Decision making
    (c) Both a and b
    (d) None of the above
  40. Informing buyers of new brand and new packages is the ……. Of sales promotion.
    (a) Objective
    (b) Method
    (c) Application
    (d) None of the above
  41. Pricing activities is ……….of product price.
    (a) Fixation
    (b) Taxation
    (c) Both a and b
    (d) None of the above
  42. Human resource is the most important ……… in an organization.
    (a) Asset
    (b) Liability
    (c) Capital
    (d) None of the above
  43. Evaluation by boss, peers and subordinates is called:
    (a) Subjective appraisal
    (b) 360 degree appraisal
    (c) Critical incident appraisal
    (d) None of the above
  44. Under the 40B of Factories Act, 1948 safety officer is to be appointed in a factory where….or more employees are working.
    (a) 1000
    (b) 500
    (c) 250
    (d) 1500
  45. Ratio of a company export prices to its import prices is called:
    (a) Relative Price Ratio
    (b) Trade Ratio
    (c) Terms of Trade
    (d) Benefits Ratio
  46. Physical delivery of foreign Exchange has to take place in case of:
    (a) Forward Market
    (b) Spot Market
    (c) Future Market
    (d) Options Market
  47. Exchange rates relate to demand and supply of:
    (a) Foreign goods
    (b) Foreign money
    (c) National money
    (d) National goods in relations to foreign goods
  48. Deduction under Section 80 JJAA is available in the following cases:
    (a) Indian Company
    (b) Foreign Company
    (c) Limited Liability Partnership
    (d) All of the above
  49. Minimum Alternate Tax is applicable in the following cases:
    (a) Limited Liability Partnership
    (b) Partnership firm
    (c) Cooperative Society
    (d) Listed Companies
  50. All methods by which tax liability is illegally avoided is termed as:
    (a) Tax Avoidance
    (b) Tax Planning
    (c) Tax Evasion
    (d) Tax Management

    Answer Key

    1 (a) 2 (b) 3 (c) 4 (c) 5 (c) 6 (c) 7 (d) 8 (b) 9 (a) 10 (b) 11 (d) 12 (c) 13 (z) 14 (a) 15 (d) 16 (a) 17 (b) 18 (c) 19 (c) 20 (a) 21 (a) 22 (d) 23 (d) 24 (d) 25 (d) 26 (d) 27 (b) 28 (c) 29 (c) 30 (d) 31 (a) 32 (c) 33 (c) 34 (d) 35 (b) 36 (c) 37 (b) 38 (b) 39 (a) 40 (a) 41 (a) 42 (a) 43 (b) 44 (a) 45 (c) 46 (b) 47 (c) 48 (a) 49 (d) 50 (c)