- ………………… is a mechanism to reduce price risk inherent in open position.
(a) Swap
(b) Hedging
(c) Customised contract
(d) Squaring off - The theory of mercantilism is based on :
(a) Gold
(b) Dollar
(c) Use of money
(d) Exchange of goods for goods - Which one of the following is not a demerit of the MNCs ?
(a) MNCs may destroy competition and acquire monopoly powers.
(b) MNCs retard growth of employment in the home country.
(c) MNCs provide means of integrating national economies.
(d) Through transfer pricing MNCs avoid taxes in the home country. - Balance of trade balances the exports and imports of ……………….. trade of a country.
(a) Invisible
(b) Merchandise
(c) Industrial
(d) Agricultural - Which one of the following is not a form of counter trade ?
(a) Buy back
(b) Compensation deal
(c) Counter purchase
(d) Purchase on credit - Usually balance of payments accounts the transactions of a country for :
(a) Five years
(b) Two years
(c) One year
(d) Ten years - The key factor for attracting FDI is :
(a) Interest rates existing for a country
(b) Entry/Exit policies
(c) Purchasing power
(d) All of the above - South Asian Association for Regional Co-operation (SAARC) was established on December, 1985 in ……………………. city.
(a) Islamabad
(b) Kathmandu
(c) Dhaka
(d) New Delhi - Which of the following is not the type of tariff reduction mechanism under agreement on agriculture (AOA) ?
(a) Amber box subsidy
(b) Blue box subsidy
(c) Green box subsidy
(d) Purple box subsidy - Which one of the following is not economic factor to cause disequilibrium in the balance of payments ?
(a) Development disequilibrium
(b) Social disequilibrium
(c) Structural disequilibrium
(d) Cyclical disequilibrium - Human Resource Accounting is an expected solution over the limitations of …………………… .
(a) Assets and liability
(b) Income and expenses
(c) Realisation concept
(d) Money measurement concept - Which of the following industries does not use the process costing ?
(a) Oil refineries
(b) Distilleries
(c) Sugar
(d) Aircraft manufacturing - When prices show a rising trend, which one of the following methods of inventory valuation will result in lower income and lower valuation of inventory ?
(a) FIFO
(b) LIFO
(c) Simple average method
(d) Weighted average method - ABC Ltd. has profit after tax Rs.80,000, Depreciation Rs.15,000 and decrease in ebtors Rs.25,000. What is the cash flow from operating activities ?
(a) Rs.55,000
(b) Rs. 40,000
(c) Rs.1,20,000
(d) Rs.65,000 - At the time of consolidation issue of bonus shares by subsidiary company out of capital profit will …………………… .
(a) Decrease cost of control
(b) Increase cost of control
(c) Increase holding ratio
(d) Have no effect on cost of control - The sweat shares are allotted to …………………… .
(a) Investors
(b) Employees
(c) Vendors
(d) Promoters - Cost auditor is appointed by :
(a) The shareholders in the general meeting
(b) The Central Government
(c) The Registrar of Companies
(d) The Board of Directors - Employee benefits to employees in financial statements are recognised as per …………………… .
(a) Indian AS-1
(b) Indian AS-9
(c) Indian AS-6
(d) Indian AS-19 - X and Y share profits and losses in the ratio of 2 : 1. They take Z as a partner and the new profit sharing ratio becomes 3 : 2 : 1. Z brings Rs.4,500 as premium for goodwill.What will be the value of firm’s goodwill ?
(a) Rs. 4,500
(b) Rs.18,000
(c) Rs. 27,000
(d) Rs. 24,000 - What is said as essence of Auditing ?
(a) Vouching
(b) Verification
(c) Valuation
(d) Internal check - Which of the following is not the basic economic problem ?
(a) What to produce ?
(b) How to produce ?
(c) What to consume ?
(d) For whom to produce ? - The ………………… effect of a change in price is negative for superior goods.
(a) Price
(b) Income
(c) Substitution
(d) Inflation - If two goods are perfect complements to each others, then indifference curves are ……………………. .
(a) Right angled
(b) Left angled
(c) Convex to origin
(d) Downward sloping - X : Long run average cost curve is flat U-shaped.
Y : It is called an envelope curve.
(a) Only X is correct
(b) Only Y is correct
(c) Both X and Y are correct
(d) Both X and Y are incorrect - Which of the following is not a fixed cost ?
(a) Payment of interest on borrowed capital
(b) Charges for fuel and electricity
(c) Depreciation charges on equipments and buildings
(d) Contractual rent for equipment or building - In which of the following market structure is the demand curve of the market epresented by the demand curve of the firm ?
(a) Monopolistic competition
(b) Perfect competition
(c) Monopoly
(d) Oligopoly - X : The extra expenditure incurred by a firm on competitive advertisement is selling ost.
Y : There are several wastes under monopolistic competition.
(a) Only X is correct
(b) Only Y is correct
(c) Both X and Y are correct
(d) Both X and Y are incorrect - This is not a feature of monopolistic competition :
(a) Product differentiation
(b) Free entry and exit
(c) Selling cost
(d) Interdependence - Match the columns :
Group-A Group-B (w) Monopolistic competition (i) Sale of goods at varying prices in foreign and domestic market. (x) Price rigidity (ii) Edward Chamberlin. (y) Dumping (iii) Firms working together in price determination. (z) Collusion (iv) Paul Sweezy. Codes :
(a) (w)-(ii) (x)-(iii) (y)-(i) (z)-(iv)
(b) (w)-(iv) (x)-(ii) (y)-(i) (z)-(iii)
(c) (w)-(ii) (x)-(iv) (y)-(i) (z)-(iii)
(d) (w)-(iv) (x)-(i) (y)-(iii) (z)-(ii) - Who among the following has not contributed to the theory of games ?
(a) J. Von Neumann
(b) Oskar Morgenstern
(c) John Nash
(d) Robert Samuelson - The measure of business risk is :
(a) Operating leverage
(b) Financial leverage
(c) Combined leverage
(d) Working capital leverage - DCF technique of Capital Budgeting does not include the following :
(a) NPV (Net Present Value)
(b) P.I. (Profitability Index)
(c) IRR (Internal Rate of Return)
(d) ARR (Average Rate of Return) - A firm has a cash dividend of Rs. 42 per share and an average growth rate of 5% per annum in cash dividend. The required rate of return is 12% per annum. Find the present value of the share :
(a) Rs. 600
(b) Rs.294
(c) Rs. 500
(d) Rs. 650 - The nominal rate of interest is equal to :
(a) Real rate + Risk premium – Inflation
(b) Real rate + Risk premium + Inflation
(c) Real rate – Risk Premium + Inflation
(d) Real rate - SDRs are :
(a) International reserve assets
(b) US currency
(c) Crawling peg
(d) ADR - Domestic currency tends to depreciate owing to :
(a) Lowering of inflation rate
(b) Constant inflation rate
(c) High inflation rate
(d) No inflation rate - Money market hedge involves :
(a) Going for a forward contract
(b) Going for a future contract
(c) Going for a backward contract
(d) A position to cover a future payables receivable position - Multilateral Investment Guarantee Agency (MIGA) covers :
(a) Political risk
(b) Commercial risk
(c) Management risk
(d) Exchange risk - At operating Break-even Point which of the following is true ?
(a) Sales revenue just covers the fixed cost
(b) Sales revenue is just equal to revenue variable cost
(c) Fixed cost is same as that of variable cost
(d) EBIT is zero - As per Net Income Approach theory a firm can increase its value and reduce the overall cost of capital by increasing the proportion of ……………in its capital structure.
(a) Debt
(b) Equity
(c) Preference shares
(d) Retained earnings - If each observation in a group is increased by 5, then the arithmetic mean will………………….. .
(a) Increase by 5
(b) Not change
(c) Decrease by 5
(d) Decrease or increase depending upon the observations - If X = 100, _x = 10, Y = 200,_y = 15, then :
(a) C.V. (X) = C.V. (Y)
(b) C.V. (X) > C.V. (Y)
(c) C.V. (X) < C.V. (Y) (d) C.V. (X) = 1.5 C.V. (Y) - If A and B are mutually exclusive and exhaustive events of _ such that P(A) = 2P(B), then P(A) = ………
(a) 0
(b) 1/3
(c) 2/3
(d) 1 - A company can complete the job in time with probability 0.8. Suppose 5 jobs are assigned then the probability that all the jobs will be completed in time is ….
(a) 5 × 0.8
(b) 0.8
(c) 1
(d) (0.8)5 - In systematic sampling the samples drawn …………………… .
(a) Are not overlapping
(b) May be overlapping
(c) Are non-random in nature
(d) Are not proper representative - The critical region in testing of hypothesis is a region of ……………..
(a) Rejection for H0
(b) Rejection for H1
(c) Acceptance for H0
(d) Acceptance for H1 - We use Mann-Whitney U test for testing equality of means of two populations if ………………. .
(a) The samples are from normal populations with unknown variances.
(b) The samples are from nonnormal populations.
(c) The samples are from normal populations with known variances.
(d) The samples are unequal in size. - If the two regression lines are x + 2y = 5 and 2x + 3y = 8 then the means of x and y are :
(a) –3, 4
(b) 2, 4
(c) 1, 2
(d) 2, 1 - If X is a normal variate with mean 20 and variance 64, then P(X > 20) = …………………… .
(a) 0
(b) 20/64
(c) 0.5
(d) 1 - Arrange the following steps in research in appropriate order :
(a) Hypothesis testing
(b) Drawing a sample
(c) Determining the size of sample
(d) Conduct the survey
(e) Decide the sampling method
(a) a, b, c, d, e
(b) b, c, a, d, e
(c) e, c, b, d, a
(d) d, e, a, b, c - Another term used for 360 degree appraisal and feedback is :
(a) Multirater
(b) Complete appraisal
(c) Internal and external appraisal
(d) Periodic assessment - …………………… is not the part of on the-job training method.
(a) Apprenticeship
(b) Simulation
(c) Coaching
(d) Intership - ………………… suggests that managerial knowledge may be transferred from one country to another and from another within the same country.
(a) Universality of Management
(b) Scientific Management
(c) Professional Management
(d) Administrative Management - ………………… is used to evolve behavioural description of a job.
(a) Critical Incident Technique
(b) Position Analysis Questionnaire/Technique
(c) Task inventory Analysis Technique
(d) Method Analysis - ………………….. is concerned with physical location, management of buildings and equipments.
(a) Ad hoc Planning
(b) Formal Planning
(c) Standing Planning
(d) Physical Planning - ………………….. is a technique for planning and controlling complex projects and for scheduling the resources required for such projects.
(a) Complexities Analysis
(b) Network Analysis
(c) Financial Analysis
(d) Internal Analysis - ………………… signifies all out efforts for increase in production, creation of spirit of utual trust and develop scientific attitude towards problem solving.
(a) Time study
(b) Mental Revolution
(c) Motion study
(d) Works study - The process resolving the differences between union and management in the absence of any third party is widely designated as ……………….. .
(a) Adjudication
(b) Arbitration
(c) Collective bargaining
(d) Conciliation - Which one of the following is not the factor that affects the span of control ?
(a) Similarities of functions
(b) Geographical closeness of employees
(c) Capacity of subordinates
(d) Delegation - ……………………. is not off the job training method.
(a) Vestibule
(b) Simulation
(c) Business games
(d) Special assignments - ………………….. it is a risk arising out of human errors, technical faults,infrastructure breakdown and faulty systems ?
(a) Exchange risk
(b) Settlement risk
(c) Gap risk
(d) Operational risk - In case of ………………….. debentures,the investors are given the option to convert their investment in the form of equity shares of the company.
(a) Fully convertible
(b) Partly convertible
(c) Non-convertible
(d) Optionally convertible - ……………………. are the persons legally permitted to deal in or handle transactions related to foreign exchange as per FEMA 1999.
(a) Underwriters
(b) Authorised persons
(c) Taraniwala
(d) Joggers - …………………… is a communication system which provides transmission of financial messages, certifying the authenticity, across the globe between members.
(a) RTGS
(b) NEFT
(c) SWIFT
(d) FINFAST - Bank should classify an account as NPA only if the interest charged during any quarter is not serviced fully within ………………… from the end of quarter.
(a) 90 days
(b) 180 days
(c) 360 days
(d) 450 days - ……………………. is an indirect instrument of credit control used by the RBI to meet day to day liquidity mismatches in the system and check volatility in the short-term money market.
(a) Credit monitoring arrangement (CMA)
(b) Liquidity adjustment facility (LAF)
(c) Credit authorization scheme (CAS)
(d) Market stabilization scheme (MSS) - The balance of a joint account in the name of X, Y and Z should be paid on the death of X :
(a) To the legal representative of X
(b) To Y and Z
(c) To Y or Z
(d) To the legal representative of X,Y and Z - The main purpose of insurance is :
(a) Compensate the loss
(b) Provide security
(c) Share the losses of few people among many
(d) Indemnification - Secondary financing of bills or credit portfolio already financed by banks or institutions as a support to primary financers is termed as ………
(a) Refinance
(b) Supplementary finance
(c) Counter finance
(d) Demand based finance - Pre-matured payment of term loan will result in interest rate risk of …………………. type.
(a) Basic risk
(b) Yield curve risk
(c) Embedded option risk
(d) Mismatch risk - Functions of physical supply include :
(a) Buying, Assembling, Selling
(b) Transportation, Storage
(c) Standardisation, Grading,Packaging, Labelling
(d) Transport, Grading and Storage - …………………….. method of pricing strategies assumes that sales and nprofits are independent of costs, but are dependent on the demand.
(a) Break-even pricing
(b) Market based pricing
(c) Competition oriented pricing
(d) Affordability based pricing - In ………………….. pricing method of service marketing, a marketer chooses to charge low price for a basic service to attract customers but every extra service above basic is charged additionally high.
(a) Differential pricing
(b) Discount pricing
(c) Diversionary pricing
(d) High price maintenance pricing - In the case of some market leaders,the companies are very highly respected that the channel members are proud to be associated with them is known as …..
(a) Reward power
(b) Coercive power
(c) Expert power
(d) Referent power - …………………. describes how andwhere information gets into memory.
(a) Memory retrieval
(b) Memory reconstructive
(c) Memory encoding
(d) Memory decoding - A customer strongly prefers a specific brand once will not accept a substitute is …………………… .
(a) Brand recognition
(b) Brand insistence
(c) Brand preference
(d) Brand loyalty - …. is one of the additional factor hindering new proudcer development, which suggest companies must aim their new products at smaller market segments
and this can mean lower sales and profits for each product.
(a) Shortage of important ideas in certain areas
(b) Social and governmental constraints
(c) Fragmental markets
(d) Cost of development - Rising sales at increasing rate is witnessed in ………………… .
(a) Maturity stage
(b) Growth stage
(c) Introduction stage
(d) Decline stage - …………………… is a form of licencing where the parent company grants another independent company the right to do business in a prescribed manner.
(a) Franchising
(b) Contract manufacturing
(c) Strategic alliance
(d) Licencing - Customer satisfaction is no longer good enough to survive in today’s competitive market. What is needed is ……………………. .
(a) Customer orientation
(b) Customer retention
(c) Building customer relationship
(d) Customer delight - Section …………………… of Indian Contract Act, 1872 defines contract as an agreement enforcible by law.
(a) 2(h)
(b) 2(b)
(c) 2(e)
(d) 2(d) - Chapter V of the Maharashtra Goods and Service Tax Act, 2017 deals with …………………… .
(a) Input tax credit
(b) Time and value of supply
(c) Levy and collection of tax
(d) Administration - What is the time limit to get the information concerning with the life and liberty of a person as per RTI Act, 2005 ?
(a) 24 Hours
(b) 48 Hours
(c) 5 Days
(d) 10 Days - As per section 24 of IPR Act, the term of copyright in Posthumous works is ……………………… years.
(a) 30
(b) 40
(c) 10
(d) 60 - What is the validity of the GST registration certificate ?
(a) One year
(b) Ten years
(c) Validity till it is cancelled
(d) Five years - Match the following groups :
Group-I Group-II (i) Trade Mark Act (a) Year 1999 (ii) Copyright Act (b) Year 1957 (iii) Patent Act (c) Year 1970 (iv) Design Act (d) Year 2000 (a) (a-i), (b-ii), (c-iii), (d-iv)
(b) (a-iv), (b-iii), (c-ii), (d-i)
(c) (a-ii), (b-i), (c-iv), (d-iii)
(d) (a-iii), (b-iv), (c-i), (d-ii) - Section …………………… of the Competition Act, 2002 deals with goods.
(a) 2(i)
(b) 2(a)
(c) 2(b)
(d) 2(h) - Which of the following is not an example of termination of agency by operation of law ?
(a) Agreement
(b) Expiry of time
(c) Death of either party
(d) Dissolution of company - As per the Right to Information Act,2005 first appeal shall be disposed off by the first appellate authority within …………………… days from the date of its receipt.
(a) 40 Days
(b) 30 Days
(c) 60 Days
(d) 50 Days - A limited liability partnership is to have at least two members as per section ……………….. of LLP Act, 2008.
(a) 14
(b) 13(c) 16
(d) 6 - Which of the following is not an ‘Agricultural Income’ under IncomeTax Act, 1961 ?
(a) Sale of replanted trees
(b) Income from growing flowers and creepers
(c) Salary of partner from a firm engaged in agricultural operations
(d) Income from supply of water from a tank in agricultural land - Mr. Rajesh is Indian citizen, went to Canada for the first time for the purpose of employment on 10th May, 2018. He came back to India on 19th Nov., 2018. His residential status for the assessment year 2019-20 will be :
(a) Resident
(b) Non-resident
(c) Resident but not ordinarily resident
(d) Foreign citizen - Which of the following allowances is not taxable in the hands of employee ?
(a) City compensatory allowance
(b) Tiffin allowance
(c) Dearness allowance
(d) Allowance from UNO in India - Which of the following income will be taxable as income from house property ?
(a) Letting of farm house
(b) Letting of an office building
(c) Letting of open plot for running petrol pump
(d) Sub-letting of house - Mr. Anil is carrying on manufacturing business of engineering goods. His data regarding machinery used for business is as follows :
Date Particulars Amount 1-4-18 Opening W.D.V. 15,00,000 30-9-18 Machinery sold at 3,00,000 (Book value Rs. 2,50,000) 10-11-18 New Machinery purchased 6,00,000 Depreciation u/s 32 of Income Tax Act, 1961 will be :
(a) Rs. 2,85,000
(b) Rs. 2,25,000
(c) Rs. 2,33,500
(d) Rs. 4,27,000 - Which of the following is not an ‘unpaid statutory liability’ at the end of previous year u/s 43-B of the Income Tax Act, 1961 ?
(a) G.S.T.
(b) Interest on term loan from scheduled bank
(c) Provision for gratuity
(d) Interest on cash credit from a small cooperative bank - Profit on transfer of whole undertaking as a going concern as a slum sale after five years of setting up of a business is taxable as :
(a) Short-term capital gain
(b) Long-term capital gain
(c) Income from business
(d) Income from other sources - Mr. Kumar sold his residential house property at Pune Rs. 18,00,000 on 23rd April, 2017, which was purchased by him on 11th April, 2014 for Rs. 9,70,000. Value opted for stamp duty purpose was Rs. 26,40,000.On June 16, 2017, he purchased a house at Kolhapur for Rs.10,00,000 for the purpose of residence of his daughter. What will be the capital gain taxable in his hand for the assessment year 2018-19. C.I. for F.Y. 2017-18 was 272 :
(a) Rs.3,05,133
(b) Rs.8,30,000
(c) NIL
(d) Rs.16,70,000 - Maximum deduction for medical expenditure on the health of senior citizen person, if mediclaim insurance is not paid on his health, for A.Y. 2019-20 is :
(a) Rs. 25,000
(b) Rs.30,000
(c) Rs.50,000
(d) Actual expenditure incurred - Techno India (Pvt.) Ltd., an Indian company purchased goods from Jems Ltd., U.K., an associated enterprise at ` 3,000 per piece. The following arm’s length prices have been determined by the most appropriate method :
Situation Price
1 2890
2 3050
3 2700
4 2940
The arm length price assuming international transaction is not in respect of wholesale trading will be :
(a) Rs.3,000
(b) Rs.2,895
(c) Rs. 3,050
(d) Rs.2,940Answer Key
1 (b) 2 (a) 3 (c) 4 (b) 5 (d) 6 (c) 7 (d) 8 (c) 9 (d) 10 (b) 11 (d) 12 (d) 13 (b) 14 (c) 15 (d) 16 (b) 17 (d) 18 (d) 19 (c) 20 (a) 21 (c) 22 (b) 23 (a) 24 (c) 25 (b) 26 (c) 27 (c) 28 (d) 29 (c) 30 (d) 31 (a) 32 (d) 33 (a) 34 (b) 35 (a) 36 (c) 37 (d) 38 (a) 39 (d) 40 (a) 41 (a) 42 (b) 43 (c) 44 (d) 45 (a) 46 (a) 47 (b) 48 (c) 49 (c) 50 (c) 51 (a) 52 (b) 53 (a) 54 (a) 55 (d) 56 (b) 57 (b) 58 (c) 59 (d) 60 (d) 61 (d) 62 (d) 63 (b) 64 (c) 65 (a) 66 (b) 67 (d) 68 (d) 69 (a) 70 (c) 71 (b) 72 (b) 73 (c) 74 (d) 75 (c) 76 (b) 77 (c) 78 (b) 79 (a) 80 (d) 81 (a) 82 (a) 83 (b) 84 (d) 85 (c) 86 (a) 87 (a) 88 (a) 89 (b) 90 (d) 91 (d) 92 (b) 93 (d) 94 (b) 95 (a) 96 (d) 97 (b) 98 (c) 99 (c) 100 (b)