Gujarat SET 2013 Sept. Commerce – Paper II

      1. Which of the following statements is not correct?
        (a) Privatization may mean that the management can be privatized.
        (b) Privatization may mean that the enterprise operations can be privatized.
        (c) Privatization necessarily means that the public enterprise is to be sold to the private sector
        (d) Privatization may mean marketisation of economic transactions
      2. Which form the following is one of the second generation reforms?
        (a) Agricultural reforms
        (b) Privatisation
        (c) Abolition of licencing
        (d) Foreign Exchange Reforms
      3. The disinvestment Policy was initiated by :
        (a) Atal Bihari Vajyapyee’s Government
        (b) Narasimha Rao’s Government
        (c) Chandrashekhar’s Government
        (d) Sonia Gandhi’s Government
      4. A corporate unit which has gone global is known as:
        (a) Euro Unit
        (b) Foregin Corporation
        (c) U.S. Corporation
        (d) Multinational Corporation
      5. For small scale industries, credit facilities are provided by:
        (a) State Financial Corporation
        (b) Commercial Banks
        (c) State Industrial Development Corporation
        (d) All of the above
      6. Which one of the following conventions is usually for the policy of “Playing Sage”?
        (a) Conservation
        (b) Consistency
        (c) Full Disclosure
        (d) Materiality
      7. Partnership agreement should specify all of the following except:
        (a) Payment of dividend
        (b) Distribution of profits
        (c) Procedure for admission of a new partner each other
        (d) Amount of capital invested by each partner
      8. Discount on issue of shares is a :
        (a) Capital loss
        (b) Revenue loss
        (c) Trading loss
        (d) Financial loss
      9. Balance sheet of a company indicates that its current ratio is 1.5. The company’s net working capital is Rs. One Crore. The current assets would amount to:
        (a) Rs. 1crore
        (b) Rs. 3crore
        (c) Rs. 4crore
        (d) Rs. 2.5crore
      10. Absorption Costing is called_________________.
        (a) Conventional costing
        (b) Full costing
        (c) Direct costing
        (d) (a) and (b) both
      11. A subject which deals in economic theories, logic, tools and analysis that are widely applied to business management is named as:
        (a) Micro-economic
        (b) International Economics
        (c) Demand and Supply Economics
        (d) Business Economics
      12. Read the following statements and thereafter select the correct alternatives about these statements :
        (a) Revenue – Direct Expenses – All indirect expenses = Profit
        (b) Profit is indispensable for the survival of a business unit
        Alternatives:
        (a) (a) is correct
        (b) (b) is incorrect but (a) is incorrect
        (c) (a) and (b) both are correct
        (d) Only (b) is correct
      13. In production unit, the fundamental objective of________is to identify and analysis the basic determinates of consumer needs and wants. Which one of the following will complete the statements in correct way?
        (a) Market Demand Function
        (b) Demand Analysis
        (c) Wealth Maximisation Process
        (d) Profit Maximisation
      14. Incomplete formula is given below:
        MU = ?/(Change in quantity/Consumed by one unit)
        The “?” will be correctly replaced by:
        (a) Change in the Total Utility
        (b) Change in Marginal Utility
        (c) Change in Average Utility
        (d) Change in Initial Utility
      15. When in a firm the productive services are increased in a certain proportion and by that the proportion and by that the production and by that the production enhances in the same proportion then that law is known as:
        (a) Law of constant returns
        (b) Law of proportionate returns
        (c) Law of equimarginal returns
        (d) Law of diminishing returns
      16. In ‘systematic sampling’ a formula of K = N/n is used . Here K = sampling interval, N = Universe size. Then what is ‘n’?
        (a) Sample design
        (b) Sample size
        (c) Concentration
        (d) Accuracy of numbers
      17. When the hypothesis is false and our test rejects, the dicision will be:
        (a) Incorrect decision
        (b) Having type – I error
        (c) Correct decision
        (d) Having type – II error
      18. Formula given:

        This formula is to calculate :
        (a) Economic Regression
        (b) Rank correlation Efficiency
        (c) Rank Correlation Coefficient
        (d) Correlation through concurrent deviations method
      19. The organized process or set of steps that needs to be followed to develop an information system is known as:
        (a) The analytical cycle
        (b) The design cycle
        (c) The program specification
        (d) The system development life cycle
      20. In a Chi-Square analysis, the table has 5 columns, and 4 rows. The degrees of freedom will be equal to:
        (a) 12
        (b) 20
        (c) 16
        (d) 8
      21. Which of the following is not an element of planning?
        (a) Programme
        (b) Procedure
        (c) Policy
        (d) Information
      22. The process of delegation is
        (a) Top to Bottom
        (b) Bottom to Top
        (c) Horizontal
        (d) Circular
      23. Which is the oldest forms of organization?
        (a) Functional Organisation
        (b) Line Organisation
        (c) Line and Staff Organisation
        (d) Committee Organisation
      24. Deciding in advance, what is to be done in future, is known as:
        (a) Management
        (b) Co-ordination
        (c) Planning
        (d) Decentralisation
      25. The term “Strategy” is related to:
        (a) Planning
        (b) Motivating
        (c) Decentralisation
        (d) Co-operation
      26. “ A marketing policy is a statement of a course of action which will be followed under a given set of circumstances.” Who said it?
        (a) William J. Stanton
        (b) Phillip Kotler
        (c) Cundiff and Still
        (d) J.R. Betty
      27. Today marketing is:
        (a) Product oriented activities
        (b) Consumer oriented activities
        (c) Profit oriented activities
        (d) Cost- oriented activities
      28. Which of the following is durable product?
        (a) Milk and Ghee
        (b) Bread
        (c) Television and Furniture
        (d) None of the above
      29. Pricing decision is affected by:
        (a) Objectives of the manufacturer
        (b) Cost of the product
        (c) Competition
        (d) All of the above
      30. Sales promotion is a :
        (a) Short – term device
        (b) Long – term device
        (c) Highly long – term device
        (d) Company strategy
      31. Which of the following does not explain relationship between capital structure and the value of the firm?
        (a) Net Income Approach
        (b) Net operating Income Approach
        (c) Net Operating Leverage Approach
        (d) Modigliani – Miller Hypothesis
      32. If EBIT = Rs. 15,00,000, Interest = Rs. 1,50,000, and Corporate tax = 40%, than degree of financial leverage shall be:
        (a) 1.11
        (b) 1.21
        (c) 1.31
        (d) 1.41
      33. The balance of debtors is not influenced by:
        (a) Level of sales
        (b) Collection policy
        (c) No. of employees in Credit Deptt
        (d) Credit terms
      34. Which of the following is not a determinant of dividend policy?
        (a) Legal constraints and liquidity of the firm
        (b) Financial position of the shareholders
        (c) Retention policy and future financing
        (d) Business cycle and inflation
      35. For discount cash flow methods, the discount rate used is:
        (a) Fixed arbitrarily
        (b) Equivalent to bank rate
        (c) Equivalent to Firm’s average cost of capital
        (d) Equivalent to final rate of dividend
      36. Which is/are the source/sources of recruitment in India?
        (a) Employee Reference
        (b) College Recruitment
        (c) Employment Exchange
        (d) All of the above
      37. The practice of placing a candidate at the right job is:
        (a) Placement
        (b) Selection
        (c) Interview
        (d) None of the above
      38. Which among the following is not a voluntary method for prevention and settlement of disputes?
        (a) Collective Bargaining
        (b) Standing Orders
        (c) Joint Consultation
        (d) Works Committee
      39. Management is bound for labour welfare:
        (a) Within the factory only
        (b) Outside the factory only
        (c) Both a and b
        (d) None of the above
      40. Social Security (Minimum standards) Convention covers:
        (a) Medical care
        (b) Sickness benefit
        (c) Unemployment benefit
        (d) All of the above
      41. Statements I : RBI occupies the central position because it regulates and controls the credit supply of the nation.
        Statements II : Indian Money Market is still unorganized money market.
        After reading these two statements select the correct answer from the following :
        (a) Both I an II are True
        (b) Only I is true and II is false
        (c) Only II is true an I is false
        (d) Infact, both I and II are false
      42. Which one of the following banks was nationalized on April 15,1980?
        (a) Bank of India
        (b) Punjab National Bank
        (c) Bank of Baroda
        (d) Corporation Bank
      43. The credit and financial facilities to the small and marginal farmers, agricultural labour, artisans, small entrepreneurs and persons of small means engaged in productive activities in rural areas are provided by:
        (a) Deposit Banks
        (b) NABARD
        (c) Rural Banks
        (d) Urban Co-operative Banks
      44. Bank Rate, Repo and Reserve Repo rates are determined by:
        (a) State Bank of India (SBI)
        (b) Bank of Saurashtra
        (c) Bank of Baroda
        (d) Reserve Bank of India (RBI)
      45. Merchant Banking covering public issues and underwriting of securities is regulated by one of the following :
        (a) RBI
        (b) Securities Act, 1956
        (c) ICICI
        (d) Guidelines of Ministry of Finance
      46. Which one of the following is not the type of “Balance of Payments”?
        (a) Current Account
        (b) Capital Account
        (c) Commodity Account
        (d) Current and capital Accounts
      47. _______is not the component of International Liquidity.
        (a) Gold held by Central Banks
        (b) Gold held by State Bank of India
        (c) Euros held by RBI
        (d) Canadian Dollars held by RBI
      48. Bretton Woods Conference recommended the establishment of:
        (a) International Euro Fund
        (b) International Bail-out Fund
        (c) International Monetary Fund
        (d) WTO
      49. World Trade Organisation was formed in 1994 on the basis of :
        (a) Tariffs and safeguards suggestions
        (b) Dunkel proposals
        (c) GATT’s Liquidation
        (d) Bretton Woods Proposals
      50. Statements I : EXIM Bank in India was set up in 1982.
        Statements II : FDI stands for ‘Foreign Direct Investment’.
        Statements III : Administering trade agreements is one of the functions of WTO
        Now, on the basis of reading of above statements, select the correct answer from the following four choices.
        (a) I, II and III are correct
        (b) I and II are correct and III is false
        (c) Only II and III are correct
        (d) Only I is correct

        Answer Key

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