Karnataka 2017 Commerce – Paper II

  1. One of the problems faced while calculating national income in India is
    (a) Unemployment
    (b) Underemployment
    (c) Disguised employment
    (d) Non-monetised consumption
  2. Which one among the following formulates the fiscal policy in India ?
    (a) Ministry of Finance
    (b) Finance Commission
    (c) Reserve Bank of India
    (d) Planning Commission
  3. Statement (1) : Economic growth is no help in efforts to ease relative poverty.
    Statement (2) : If a Country’s GDP per head rose by 3% a year, it would take about 33 years for its output GDP per head to double.
    (a) Both Statement (1) and (2) are correct
    (b) Both Statement (1) and (2) are incorrect
    (c) Statement (1) is correct and Statement (2) is incorrect
    (d) Statement (1) is incorrect and Statement (2) is correct
  4. Match the following :
    List – A List – B
    (a) National Development Council i. 1985
    (b) Indira Awas Yojana ii. 1989
    (c) Jawahar Rozgar Yojana  iii. 1952
    (d) National Ruralmployment Guarantee Programme iv. 2006 E

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

  5. ‘The age of discontinuity’ is a book authored by
    (a) Adam Smith
    (b) Peter F. Drucker
    (c) J. M. Keynes
    (d) John Drydon
  6. “Anticipate no gains, but provide for all possible losses”. This is the dictum of
    concept.
    (a) Matching concept
    (b) Materiality concept
    (c) Money measurement concept
    (d) Conservative concept
  7. Cash flow arising from interest paid in case of a financial enterprise is a cash flow from
    (a) Operating activities
    (b) Financing activities
    (c) Both (A) and (B)
    (d) Investing activities
  8. Given that the pre-tax profit but after interest @ 18% on Rs. 8,00,000 debt is Rs. 12,06,400 and the tax rate is @ 45%, the future maintainable profit on the basis of long-term fund approach will be
    (a) Rs. 6,63,520
    (b) Rs. 7,42,720
    (c) Rs. 79,200
    (d) None of the above
  9. Assertion (A) : Value of goodwill is to be divided by the number of shares to arrive at the intrinsic value per share.
    Reasoning (R) : Excess of purchase consideration over net worth results in an increase in the intrinsic value per share.
    Codes :
    (a) Both (A) and (R) are correct
    (b) Both (A) and (R) are incorrect
    (c) (A) is correct and (R) is incorrect
    (d) (A) is incorrect and (R) is correct
  10. Match the following :
    List – A List – B
    (a) P/V ratio × Sales value i. Fixed cost
    (b) P/V ratio × BEP sales  ii. Profit
    (c) P/V ratio × Margin of safety  iii. Variable cost ratio
    (d) 1 – P/V ratio iv. Contribution

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

  11. Triffin measures the degree of monopoly power interms of
    (a) Income elasticity of demand
    (b) Promotional elasticity of demand
    (c) Price cross elasticity of demand
    (d) Advertising elasticity of demand
  12. The optimum size of a firm can exist
    (a) Only under monopoly
    (b) Only under imperfect competition
    (c) Only under perfect competition
    (d) Under all types of market structure
  13. Statement (1) : Perfect competition is a myth, monopolistic competition is fact of life.
    Statement (2) : Under perfect competition, products are homogeneous; in monopolistic competition, products are differentiated.
    Codes :
    (a) (1) is correct, (2) is incorrect
    (b) (1) is incorrect, (2) is correct
    (c) Both (1) and (2) are incorrect
    (d) Both (1) and (2) are correct
  14. Formula for calculating marginal rate of technical substitution is
    (a) MRTS = Quantity ÷ Price
    (b) MRTS = ΔLabour ÷ΔCapital random sampling
    (c) MRTS = (ΔLabour-Quantity)/(ΔCapital-Price)
    (d) MRTS =(Labour-One)/(Capital-One)
  15. Match the following :
    List – I  List – II
    (a) Joint Demand  i. Beaf and Hide
    (b) Joint Supply ii. Pepsi and Coco-cola
    (c) Derived Demand iii. Tea and Sugar
    (d) Competitive Demand  iv. Computer and Operator

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

  16. The standard normal distribution has
    (a) Mean = 1 and S.D. = 0
    (b) Mean = 1 and S.D. = 1
    (c) Mean = 0 and S.D. = 0
    (d) Mean = 0 and S.D. = 1
  17. In testing of hypothesis, the decision to use a single tailed or two-tailed test depends upon
    (a) Size of the sample
    (b) Alternative Hypothesis
    (c) Null Hypothesis
    (d) Sampling Error
  18. Which of the following is not a type of
    (a) Stratified sampling
    (b) Systematic sampling
    (c) Judgement sampling
    (d) Cluster Sampling
  19. Two variables are perfectly positively correlated when the co-variance between them is
    (a) 0
    (b) (B) + one
    (c) – one
    (d) σ1 σ2
  20. For the purpose of processing cheques, the data scanning is done by the banks with the help of
    (a) MICR
    (b) UPC
    (c) CCD
    (d) LED
  21. Which of the following functions of management is referred to as the essence of management ?
    (a) Planning
    (b) Organising
    (c) Coordinating
    (d) Controlling
  22. Match the following :
    List – A  List – B
    (a) Mary Parker Follet i. Bureaucracy
    (b) L. Urwick ii. Bridging scientific management and human relations
    (c) Max Weber i ii. Management Science
    (d) Blake and Mouton iv. Concern for people and concern for production

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

  23. In the process of delegating authority, the superior delegates
    (a) Authority and responsibility
    (b) Responsibility only
    (c) Authority only
    (d) Responsibility and accountability
  24. Assertion (A) : Without co-ordination, people would lose sight of their roles within the total organization and be tempted to pursue their own interests.
    Reasoning (R) : Co-ordination is the process of integrating the activities of separate departments in order to pursue organizational goals effectively.
    (a) Both (A) and (R) are correct
    (b) Both (A) and (R) are incorrect
    (c) (A) is correct and (R) is incorrect
    (d) (A) is incorrect and (R) is correct
  25. Power derived from the status or position in an organisation is called
    (a) Expert power
    (b) Legitimate power
    (c) Power of experience
    (d) Referent power
  26. Match the name of the Banks with their tag line :
    Name of the Bank Tag line
    (a) Bank of Baroda  i. Dare to dream
    (b) Bank of Rajastan  ii. Your right partner
    (c) H.S.B.C iii. India’s International Bank
    (d) Standard Chartered Bank  iv. The World’s Local Bank

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

  27. A group of people with shared value systems based on common life experiences and situations is called
    (a) Social class
    (b) Life-style groups
    (c) Cultural groups
    (d) Sub-cultural groups
  28. Providing a total package of related goods and services to solve a customer’s needs is called
    (a) Complete selling
    (b) Wholesale selling
    (c) Conglomerate selling
    (d) Systems selling
  29. Statement (1) : Companies normally develop product lines rather than single product and introduce price steps.
    Statement (2) : Many companies offer optional products, features and services along with their main product to boost the sales.
    (a) Both (1) and (2) are incorrect
    (b) Both (1) and (2) are correct
    (c) (1) is correct and (2) is incorrect
    (d) (1) is incorrect and (2) is correct
  30. Set of consumers who are interested in and access to a particular offer is called
    (a) Potential market
    (b) Penetratable market
    (c) Target market
    (d) Available market
  31. If a company’s cost of debt is 8%, financial leverage ratio is 0.5, the ROI is 14% and the tax rate is 40%, its cost of equity will be
    (a) 06%
    (b) 10%
    (c) 10.20%
    (d) 10.30%
  32. Maintenance of dividend equalisation reserve is the hallmark of
    (a) Constant dividend pay-out policy
    (b) Conservative dividend policy
    (c) Liberal dividend policy
    (d) None of the above
  33. Money cashflows are to be discounted by using
    (a) Money discount rate
    (b) Real discount rate
    (c) 1 + Money discount rate
    (d) 1 + Real discount rate
  34. Assertion (A) : NoI approach to capital structure implies that the Ke goes on increasing with the successive increase in the financial leverage.
    Reasoning (R) : Under NoI approach, Ke is undefined when the degree of financial leverage is equal to one.
    Codes :
    (a) Both (A) and (R) are correct
    (b) Both (A) and (R) are incorrect
    (c) (A) is correct but (R) is incorrect
    (d) (A) is incorrect but (R) is correct
  35. Match the following :
    List – A List – B
    (a) Pareto Analysis  i. NoI approach
    (b) Constant cash flows  ii. M-M model
    (c)  Ve Vf – Vd  iii. Baumol model
    (d) d. Bird-in-the-hand fallacy  iv. 80/20 rule

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

  36. When a process undergoes a change due to re-engineering programme,_______ of the concerned employee also changes.
    (a) Qualification
    (b) Designation
    (c) Job profile
    (d) Job experience
  37. Statement (1) : Sound policies do not help in resolving intrapersonal, inter- personal and inter-group conflicts.
    Statement (2) : The Delphi technique is named after the ancient Greek philosopher Peter Delphi.
    Codes :
    (a) Both (1) and (2) are correct
    (b) Both (1) and (2) are incorrect
    (c) (1) is correct and (2) is incorrect
    (d) (1) is incorrect and (2) is correct
  38. Which of the following is a Human Resource Model ?
    (a) The Harward Model
    (b) Systems Theory Model
    (c) Mc Gregor’s Model
    (d) Lawler and Porter Model
  39. Match the following objectives and functions :
    Objectives Functions
    a. Functional i. Employee relations
    b. Organisational ii. Compensation
    c. Societal iii. Assessment
    d. Personal iv. Union- management relations
    Codes :
    a b c d
    (a) ii iv i iii
    (b) iii iv ii i
    (c) iv iii i ii
    (d) iii i iv ii
  40. Excessive reliance on internal recruitment by an organisation would lead to the serious problem of
    (a) Reduced job performance
    (b) Internal resistance
    (c) Lack of motivation
    (d) Labour turnover
  41. Bank of Cochin merged with
    (a) Punjab National Bank
    (b) State Bank of India
    (c) Bank of Baroda
    (d) Bank of Rajastan
  42. Minimum period of a certificate of deposit is
    (a) 7 days
    (b) (B) 10 days
    (c) 15 days
    (d) (D) 30 days
  43. Match the following :
    Bank Slogans
    (a) State Bank of India i. A tradition of trust
    (b) CITI Bank ii. Relationships beyond banking
    (c) Allahabad Bank iii. Pure banking, Nothing else
    (d) Bank of India iv. Let’s get it done
    Codes :
    a b c d
    (a) iii iv ii i
    (b) iv iii i ii
    (c) iii iv i ii
    (d) ii i iv iii
  44. Statement (1) : An electronic fund transfer system that operates on deferred net settlement basis which settles transactions in batches is referred to as NEFT.
    Statement (2) : The risk that a bank faces while trading in government securities is called trade risk.
    Codes :
    (a) Both the Statements are true
    (b) Both the Statements are false
    (c) Statement (1) is true and (2) is false
    (d) Statement (2) is true and (1) is false
  45. The earlier name of AXIS Bank Limited is
    (a) UTI Bank Limited
    (b) Times Bank Limited
    (c) Bank of Madhura Limited
    (d) Bank of Karad
  46. The phenomenon whereby a currency crisis in one country makes currency crisis in another country is known as
    (a) Asymmetric
    (b) Contagion
    (c) Devaluation
    (d) Depreciation
  47. International Monetary Fund (IMF) was established to
    (a) Promote international monetary co- operation
    (b) Exchange rate stability and orderly exchange rate arrangements
    (c) To foster economic growth and high employment
    (d) All the above
  48. Political risk is a function of
    (a) The probability that a given political event will affect a given firm
    (b) The magnitude of the event’s impact
    (c) Both (A) and (B)
    (d) Neither (A) nor (B)
  49. Match the following :
    MNE  Country
    (a) Pfizer  i. Germany
    (b) Volkswagan ii. Finland
    (c) Samsung  iii. USA
    (d) Nokia  iv. Korea

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

  50. GATT covered intellectual property issue in the following round
    (a) Uruguay Round
    (b) Geneva Round
    (c) Tokyo Round
    (d) Kennady Round

    Answer Key

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