Karnataka 2013 Commerce – Paper III

    1. Which one of the following statements is not true ?
      (a) All Accounting Standards in India are framed by ICAI from time to time
      (b) All Accounting Standards are mandatory
      (c) Responsibility Accounting presumes Revenue and Cost Centers are identifiable
      (d) Social Accounting is not mandatory in India
    2. As per current regulations, each mutual fund can invest overseas upto a maximum amount of
      (a) Rs.300 crore
      (b) US $ 300 mn.
      (c) US $ 300 bn.
      (d) Rs. 3,000 crore
    3. One of these is not a commodity exchange established in India
      (a) MCX
      (b) NCDEX
      (c) NMCE
      (d) BANKEX
    4. Securities Lending and Borrowing (SLB) is the mechanism introduced by SEBI
      (a) For providing settlement of stocks sold short
      (b) For raising loans against stocks
      (c) For settlement of short selling of securities
      (d) For settlement of default transactions
    5. The settlement period for short selling is
      (a) T + 3
      (b) T + 2
      (c) T + 1
      (d) T + 5
    6. Government Securities Act has not provided one of the following facility
      (a) Permits pledging of securities
      (b) Govt. securities can be split into different securities
      (c) Nomination facility can be provided to investors
      (d) Payment will be made to the bearer of the securities
    7. If the yield on long dated Govt. Securities falls, then the yield curve will become
      (a) Steeper
      (b) Flatter
      (c) Shift downward
      (d) Shift upward
    8. 11% Govt. of India Security is quoted at Rs. 110. If the interest rates go down by 1% the market price of the security will be
      (a) Rs. 110
      (b) Rs. 109
      (c) Rs. 122.2
      (d) Rs. 111.2
    9. Which one of the following statements is false ?
      (a) Convertible debentures carry an element of equity shares
      (b) Favourable monsoon brightens the prospects for stock market
      (c) Money market mutual funds do not invest in equity shares
      (d) Mutual fund mobilisation has bearish influence on the stock market
    10. Which one of the following statements is true ?
      (a) Steeper yield curve means long term interest rates are much higher than short term interest rates
      (b) Falling interest rates cause NAVs of debt mutual fund to go down
      (c) Mutual funds can offer guaranteed returns
      (d) A mutual fund scheme, with an entry load will have its sale price higher than its NAV
    11. A Company with a capital of Rs. 50 crores (Face value of Rs. 10/- per share) makes a gross profit of Rs. 70 crores and PAT of Rs. 25 crores. If the market price of its equity share is Rs. 50. The PE ratio will be
      (a) 50
      (b) 5
      (c) 10
      (d) 20
    12. Financial Risk is defined as
      (a) Risk arising due to capital structure dynamics
      (b) Uncertainities in cash flow
      (c) Business losses
      (d) Risk due to market price fluctuations
    13. A Company with equity capital of Rs. 15 crores makes PBIT of Rs. 15 crores and PAT of Rs. 10 crores. The face value of the share is Rs. 5 and PE ratio is 10. The market price will be
      (a) Rs. 50
      (b) Rs. 66
      (c) Rs. 33
      (d) Rs. 100
    14. Find the odd-man-out in investment risk.
      (a) Interest Rate Risk
      (b) Business Risk
      (c) Market Risk
      (d) Inflation
    15. Which one of the expressions indicate market risk of individual security ?
      (a) i
      (b) p
      (c) Ri
      (d) Rp
    16. A system used to determine the attractiveness and probability of success of a product is called
      (a) Demand forecasting
      (b) Opportunity analysis
      (c) Environmental analysis
      (d) Market opportunity analysis
    17. Purchase of goods, services and information E-Commerce from various online suppliers is
      (a) E-Commerce
      (b) E-Purchasing
      (c) E-Marketing
      (d) Tele-marketing
    18. The process of reintroducing earlier product forms that can be well adapted to a new market environment is called
      (a) Re-invention
      (b) New invention
      (c) Backward invention
      (d) Reintroduction
    19. The process of selling all products under a particular brand name is called
      (a) Brand line
      (b) Brand extension
      (c) Brand mix
      (d) Brand portfolio
    20. Products that are necessary to the use of other products such as razor blades or film are called
      (a) Main products
      (b) Captive products
      (c) Necessary products
      (d) Essential products
    21. Match the following:
      List-I  List-II
      (a)Geographic  (i) Age
      (b)Demographic  (ii) Income level
      (c)Socio-Economic (iii) Region
      (d)Psychographic  (iv) Compulsiveness

      Code :
      (a)  (c) (d)
      (a) (iii) (ii) (i) (iv)
      (b) (ii) (iii) (iv) (i)
      (c) (iv) (iii) (ii) (i)
      (d) (iii) (i) (ii) (iv)

    22. Match the following :
      List-I List-II
      (a)Publicity  (i) Print ads
      (b)Personal selling (ii) Couponing
      (c)Sales promotion  (iii) Telemarketing
      (d)Advertising  (iv) Print media

      Code :
      (a) (b) (c) (d)
      (a) (iv) (ii) (iii) (i)
      (b) (i) (ii) (iii) (iv)
      (c) (iv) (iii) (ii) (i)
      (d) (ii) (iii) (iv) (i)

    23. Statement A : Relatively permanent and homogenous division in a society into which individuals or families showing similar values, life-styles, interests and behaviour can be categorised.
      Statement B : This is social class.
      Code :
      (a) Statement A is true but Statement B is not true
      (b) Statement A is not true but Statement B is true
      (c) Both the statements do not match each other
      (d) Both the statements A and B are true
    24. The set of all brands and brand lines a particular firm offers for sale to buyers in a particular category is known as
      (a) Brand line
      (b) Brand mix
      (c) Brand group
      (d) Brand portfolio
    25. The extraction of useful information about individuals, trends and segments from the mass of data is known as
      (a) Data mining
      (b) Database
      (c) Data retrieval
      (d) Data warehouse
    26. A set of procedures and sources from which managers obtain every day information about developments in the marketing environment is called
      (a) Marketing information system
      (b) Marketing intelligence system
      (c) Market research
      (d) Marketing reports
    27. When the manufacturer uses advertising and promotion to persuade customers to buy the product, the strategy is known as
      (a) Pull strategy
      (b) Push strategy
      (c) Sales strategy
      (d) Marketing strategy
    28. Groups of people who influence a person’s attitudes, values and behaviour is called
      (a) Friends group
      (b) Peer group
      (c) Neighbours
      (d) Reference groups
    29. When a firm increases the depth within a particular line and/or the number of lines a firm offers to customers is called
      (a) Product expansion
      (b) Product extension
      (c) Product-mix expansion
      (d) Line extension
    30. Selling the product through every available outlet in a market where a consumer might reasonably look for it is called
      (a) Comprehensive distribution
      (b) Intensive distribution
      (c) Exclusive distribution
      (d) Selective distribution
    31. Human factor can be described as
      (a) Active agent
      (b) Passive agent
      (c) Inanimate object
      (d) Inorganic object
    32. Job description and job specification are the byproducts of
      (a) Job enlargement
      (b) Job enrichment
      (c) Job analysis
      (d) Job design
    33. A process that ensures right number and right kind of people are available at right times and right places in an organization
      (a) Recruitment process
      (b) Selection process
      (c) Induction
      (d) Manpower planning
    34. Educational qualifications are prescribed by law for the following position
      (a) HR Manager
      (b) Labour Welfare Officer
      (c) Marketing Officer
      (d) All the above
    35. The process of familiarising the new employee with company rules, regulations and other job related information
      (a) Placement
      (b) Induction
      (c) Role clarity
      (d) Job classification
    36. Job description is a statement that contains elements like
      (a) Job title, location and duties
      (b) Machines, tools and equipment
      (c) Materials, working conditions and hazards
      (d) All the above
    37. In performance appraisal, when rater’s assessment is influenced by previously held beliefs, this error is called
      (a) Spill over effect
      (b) Perceptual set
      (c) Halo effect
      (d) Leniency error
    38. The tendency to judge all aspects of an employee’s performance on the basis of a single attribute is
      (a) Halo effect
      (b) Leniency error
      (c) Like me effect
      (d) Rater effect
    39. A creative method of training in which participants are given an opportunity to generate ideas openly, without fear of judgement
      (a) Simulation
      (b) Artificial intelligence
      (c) Brain storming
      (d) Inbasket
    40. If money wages are fixed and constant, which of the following situation would prevail ?
      (a) Real wage may also be constant
      (b) Real wage may fall
      (c) Real wage may rise
      (d) None of the above
    41. Give the correct sequence of the following.
      (i)Living wage
      (ii)Minimum wage
      (iii)Fair wage
      (iv)Subsistence wage
      (a) (iv) (i) (iii) (ii)
      (b) (iv) (ii) (iii) (i)
      (c) (ii) (i) (iii) (iv)
      (d) (ii) (iv) (i) (iii)
    42. Which is not an intra-mural welfare facility ?
      (a) Latrines and urinals
      (b) Washing facilities
      (c) Housing facility
      (d) Creche facility
    43. The scope of industrial relations does not include
      (a) Employer and employee relations
      (b) Employer and trade union relations
      (c) Employer and customer relations
      (d) Employer and Government relations
    44. Welfare is considered as:
      (a) Social concept
      (b) Relative concept
      (c) Total concept
      (d) All the above
    45. Arrange the following in order
      (i)Promotion
      (ii)Performance appraisal
      (iii)Recruitment
      (iv)Training
      (a) (iii) (iv) (ii) (i)
      (b) (iii) (ii) (i) (iv)
      (c) (i) (ii) (iii) (iv)
      (d) (iv) (iii) (ii) (i)
    46. Match the following :
      Part – A Part – B
      (a)Current Account  1) Unilateral transfers
      (b)Capital Account 2) Basic Balance
      (c)Official Reserve  3) SDRs Account
      (d)Net Liquidity term capital  4) Liquid short Balance

      Code :
      (a) (b) (c) (d)
      (a) 1 2 3 4
      (b) 1 3 2 4
      (c) 2 1 3 4
      (d) 4 3 2 1

    47. Which conference gives birth to the “International Monetary Fund” ?
      (a) Bretownwoods
      (b) Congress
      (c) LIBOR
      (d) TIDA
    48. Statement ‘A’ : SDRs are right to drawn on the International Monetary Fund and are sometimes called ‘Paper Gold’.
      Statement ‘B’ : Miscellaneous items consists of the allocation of Special Drawing Rights (SDRs) and statistical discrepancy.
      (a) Statement ‘A’ is true
      (b) Statement ‘B’ is true
      (c) Statement ‘A’ and ‘B’ are true
      (d) Statement ‘A’ and ‘B’ are not true
    49. How many members are there in IMF (as on July 2011) ?
      (a) 187
      (b) 176
      (c) 180
      (d) 172
    50. The International Finance Corporation came into force on
      (a) July 1956
      (b) August 1956
      (c) January 1956
      (d) December 1956
    51. 8th Conference of GATT has been held at
      (a) Uruguve Round
      (b) Hempasayer
      (c) New Delhi
      (d) Chennai
    52. For political co-operation which body came into existence ?
      (a) World bank
      (b) Reserve bank of India
      (c) United nations organisation
      (d) International Monetary Fund
    53. The SDRs can be used by the participating countries.
      (a) Conditionally
      (b) Un-conditionally
      (c) Freely
      (d) Warranties
    54. Match the following:
      Part – A(Foreign Exchange Part – B (Year) Reserve, in gold, Rs., crore)
      (a) 40124  1) 2007-08
      (b) 48793 2) 2008-09
      (c) 81188  3) 2009-10
      (d) 102572 4) 2010-11

      Code : (a) (b) (c) (d)
      (a) 1 2 3 4
      (b) 2 3 1 4
      (c) 3 4 1 2
      (d) 4 3 1 2

    55. Which of the following is not example of Foreign Exchange Rate ?
      (a) US $ = 1 : Rs. 45
      (b) Pound = 1 : Rs. = 78
      (c) Iraqee Dinar = 1 : Rs. 30
      (d) None of the above
    56. Who has demonstrated, how prosperity of one country brings prosperity to other countries participating in International Trade ?
      (a) J. M. Keynes
      (b) Prof. Bertil Ohlin
      (c) Prof. Horst Kohaler
      (d) Prof. T. M. Hurller
    57. How many percent of the subscribed capital of World Bank has been called and paid by member countries ?
      (a) 10%
      (b) 20%
      (c) 15%
      (d) 35%
    58. 4) 2010-11The Multilateral Investment Guarantee Agency (MIGA) was created in
      (a) 1988
      (b) 1989
      (c) 1990
      (d) 1991
    59. Match the following :
      Part – A(Country)  Part – B (Currency)
      (a)Algeria 1) Dinar
      (b)Angola  2) Kwanza
      (c)Egypt 3) Pound
      (d)Ethiopia  4) Birr
      (e)Ghana  5) Cedi

      Code :
      (a) (b) (c) (d) (e)
      (a) 1) 2) 3) 4) 5)
      (b) 1) 4) 5) 3 2)
      (c) 5) 4) 3) 2) 1)
      (d) 2) 4) 5) 3) 1)

    60. The organisation for European Economic Co- operation formed in
      (a) 1940
      (b) 1948
      (c) 1945
      (d) 1946
    61. The objective of taxation is
      (a) To achieve socio-economic development
      (b) To improve the financial position of the country
      (c) To prevent concentration of wealth in the hand of few people
      (d) All of the above
    62. Which of the following is an indirect tax ?
      (a) Wealth tax
      (b) Income tax
      (c) Gift tax
      (d) Sales tax
    63. Maximum number of members in CBDT is
      (a) 4
      (b) 21
      (c) 5
      (d) 26
    64. Income Tax Act came into force on
      (a) 1-4-1962
      (b) 1-7-1962
      (c) 1-5-1962
      (d) 1-9-1962
    65. Surcharge means
      (a) Tax on total income
      (b) Tax on salary income
      (c) Tax on tax
      (d) None of the above
    66. Municipal tax paid by _______ is not allowed.
      (a) Tenant
      (b) Owner
      (c) Assessee
      (d) None
    67. Section 80G deals with
      (a) Pension
      (b) Donations
      (c) Gratuity
      (d) None
    68. If assessee is physically handicapped, deduction u/s is allowed.
      (a) 80a
      (b) 80G
      (c) 80u
      (d) None
    69. Section 80D deals with
      (a) Medical expenses
      (b) Education expenses
      (c) Pension
      (d) None
    70. Education cess is leviable at rate.
      (a) 3%
      (b) 2%
      (c) 2.5%
      (d) 3.5%
    71. Residential status of an individual is to be determined for
      (a) Previous year
      (b) Assessment year
      (c) Accounting year
      (d) All of the above
    72. A senior citizen is one of and above.
      (a) 50 years
      (b) 55 years
      (c) 60 years
      (d) None of the above
    73. The exemption limit of income for tax purpose for the a.y. 2013-14 in case of an individual other than senior citizen is
      (a) Rs. 1,00,000
      (b) Rs. 1,50,000
      (c) Rs. 2,00,000
      (d) Rs. 2,50,000
    74. Section 31 of Income Tax Act deals with
      (a) Repairs and insurance of machinery
      (b) Depreciation on building
      (c) Deduction on specified businesses
      (d) Agriculture extension project
    75. Which one is not a deduction Section in Income Tax Act ?
      (a) 80A
      (b) 80B
      (c) 80X
      (d) All of the above