- Match the pairs and select the correct answer from the codes given below :
List I List II (a) Resource availability (i) Technological Environment (b) Status of technological Advancement (ii) Legal Environment (c) Regulatory Framework (iii) Cultural Environment (d) Values and Ethics of People (iv) Natural Environment Codes :
(a) (iv) (i) (ii) (iii)
(b) (iii) (i) (iv) (ii)
(c) (i) (ii) (iii) (iv)
(d) (iv) (iii) (ii) (i) - The external stakeholders of business include :
(a) Politicians, social activist,shareholders, dealers
(b) Govt. organisations, NGO, Dealers and Suppliers
(c) Bankers, Suppliers, Investors, Dealers
(d) Dealers, Bankers, Investors, Consultants - Which of the following agency enables the company as well as the public to evaluate the social performance of the company ?
(a) Performance Audit
(b) Social Audit
(c) Social Accounting
(d) Social Evaluatory Audit - …………………………… is a social movement seeking to augment the rights and powers of the buyers in relation to sellers.
(a) Consumer protection
(b) Consumerism
(c) Consumer activism
(d) Consumer empowerment - Which of the following is not a basic objective of a public enterprise ?
(a) To redistribute of income and wealth
(b) Import substitution
(c) To earn return on investment of government funds
(d) To protect natural and social environment - Which one of the following accounting treatment is correct, when old machinery is purchased for Rs. 76,400 and rings and pistons of the old machine were changed to get fuel efficiency, worth Rs.3,600.
(a) Capital expenditure Rs.76,400 and Revenue Expenditure Rs. 3,600
(b) Capital Expenditure Rs.76,400 and Deferred Revenue Expenditure Rs. 3,600
(c) Capital Expenditure Rs. 80,000
(d) Deferred Revenue Expenditure Rs. 80,000 - Match the following phrases with the descriptions of the accounting processing cycle and choose the correct answer from the codes given below :
List I (Phrases) List II (Descriptions) (a) Transaction Analysis (i) Income statement and position statement (b) Trial Balance (ii) A chronological record is prepared that reflects the economic effects of each transaction (c) Financial Statement (iii) Transfer of amount for each account affected by the transaction, results in a reclassification of the data (d) Posting (iv) A listing of each account and its debit or crediting ending balance Codes :
(a) (iii) (iv) (ii) (i)
(b) (iv) (i) (ii) (iii)
(c) (iii) (i) (iv) (ii)
(d) (ii) (iv) (i) (iii) - Responsibility Accounting is one of the basic components of a good ……………………. .
(a) Plan
(b) Control system
(c) Incentive scheme
(d) Motivating instrument - The entity postulate ………………….. .
(a) refers to the name of the company required in the heading of the balance-sheet
(b) refers to the owners of the entity, who must account for their interest in the entity in heir personal holdings
(c) indicates that the accounting unit on which the financial reports are based is the business itself, separate from its owners
(d) holds that the business is made up of many separate components that are accounted for separately but reported collectively in the financial statements - In Break-even Chart, the Break-even point is the intersection of the following two lines :
(a) Variable Cost Line and Fixed Cost Line
(b) Total Cost Line and Sales Line
(c) Sales Line and Marginal Cost Line
(d) Fixed Cost Line and Sales Line - Business Economics is :
(a) Applied Economics
(b) Only Static Economics
(c) Only Financial Economics
(d) Only Dynamic Economics - Risk and Uncertainty theory of Profit was developed by :
(a) Marshall and Pigou
(b) Hawley and Knight
(c) J.B. Clark and J. Schumpeter
(d) McNair and Meriam - The income elasticity of demand for inferior goods is :
(a) Negative
(b) Positive
(c) Zero
(d) Unitary - For the demand equation P = 1000 – 4q, the marginal revenue equation is :
(a) 1000q – 4q2
(b) 1000q – 8q2
(c) 1000q – 8q
(d) – 8q 
- The difference between the population parameter and its estimate based on sample is called as ……………………….. .
(a) Human error
(b) Population error
(c) Sampling error
(d) Non-sampling error - If each observation is doubled,then the coefficient variation will …………………….. .
(a) not be changed
(b) be doubled
(c) be decreased to half of the original
(d) be increased by 2 
- A sample of 100 observations from normal distribution with mean μ and variance 9, has mean 4.7. The value of test statistic to test H0 : μ = 5 is ……………………….. .
(a) 1
(b) 3.75
(c) –1
(d) –28.75 
- (I) A manager’s job is vital to the society as it determines whether our social institution serve well or not.
(II) It is essential to study the different parts of managerial role as it decides the type and nature of performance of an organisation. Based on the above two statements following four conclusions are derived, identify which one is appropriate :
(a) A manager performs useful work
(b) Social and organizational success depends on the performance of manager
(c) Manager do what people expect them to do
(d) Different organisations require different types of managerial role - Which of the following is an essential ability of a team leader ?
(a) Clarify goals and tasks and gather ideas for improvement
(b) Work out a good scheme
(c) Identify faults in the scheme
(d) Eliminate the obstacles in the planning process - ………………………… is the function of a line manager.
(a) Use special technical expertise to advice and support
(b) To act as a manager in public or non-profit organisation
(c) To be responsible for complex multifunctional units
(d) Directly contribute to the production of basic goods and services - The four important functions of management process are ……….. .
(a) Planning, Controlling, Organising and Leading
(b) Planning, Scheduling,Budgeting, Decision-making
(c) Planning, Motivating, Directingand Performance appraisal
(d) Scheduling, Idea generation,Controlling and Organising - Arrange the needs as per Maslow’s need hierarchy in correct order :
(a) Social needs—Safety needs—Esteem needs—Psychological needs
(b) Safety needs—Esteem needs—Self actualisation needs—Psychological needs
(c) Psychological needs—Social needs—Esteem needs—Selfactualisation needs
(d) Social needs—Psychological needs—Esteem needs—Self actualisation needs - The term ‘marketing’ refers to :
(a) New product concepts and improvements
(b) Advertising and promotion activities
(c) A philosophy that stresses customer value and satisfaction
(d) Planning sales campaign - The term “marketing mix”describes :
(a) A composite analysis of all environmental factors inside and outside the firm
(b) A series of business decisions that aid in selling a product
(c) A relationship between a firm’s marketing strengths and its business weaknesses
(d) A blending of four strategic elements to satisfy specific target markets - Why do business spend a large amount on advertising and promotion when the product is in its introduction stage ?
(a) Because that is the time when the product is very profitable
(b) To ensure customers have the correct information about the product
(c) So that it can save the money for advertising at all the other stages of the life cycle
(d) To ensure that potential customers become aware of the new product - The concept of “Marketing Myopia”was introduced by :
(a) E.J. McCarthy
(b) Theodore Levitt
(c) Philip Kotler
(d) W.J. Stanton - Which one of the following is an example of non-store retailing ?
(a) Limited Line stores
(b) Super Markets
(c) Tele Marketing
(d) Discount stores - Which of the following is not an assumption of the MM theory for irrelevance of dividends ?
(a) Irrational investors
(b) No tax discrimination on capital gains and dividends
(c) No transaction costs
(d) No flotation costs - The only viable goal of financial management is ……………………… .
(a) Profit maximization
(b) Wealth maximization
(c) Sales maximization
(d) Assets maximization - According to ……………………….., cost of capital is the minimum required rate of earnings or the cut-off rate of capital expenditure.
(a) Hunt, William and Donaldson
(b) James C Van Horne
(c) Soloman Ezra
(d) Hampton, John - A motive for holding cash/near-cash as a cushion to meet contingencies/demand for cash, is termed as ……………………. .
(a) Precautionary motive
(b) Transaction motive
(c) Speculative motive
(d) Compensating motive - The data requirement for ………………..are after tax cash outflows and cash inflows.
(a) Cash flow statement
(b) Fund flow statement
(c) Capital budgeting
(d) Flexible budgeting - Job analysis can be performed in all of the following ways, except :
(a) Interviews conducted with departing employees
(b) Analysing log books
(c) Observing hourly workers
(d) Giving workers checklist to indicate which tasks on the list are performed during the job - Under the Factories Act no worker is permitted to work for more than ………………………. hours in a day.
(a) 8
(b) 9
(c) 10
(d) 24 - Which method of performance appraisal makes use of critical incidents to prepare rating scales ?
(a) Assessment centre
(b) Peer appraisal
(c) Self appraisal
(d) BARS - A progressive system of discipline does not include this :
(a) Warning
(b) Discharge
(c) Slowdown
(d) Suspension - Who introduced the concept of quality circles in India ?
(a) P.V. Rao
(b) Udai Pareek
(c) Dharani P. Sinha
(d) S.R. Udpa - Which one of the following is likely to help in remedying an adverse balance of payment?
(a) Revaluation of currency
(b) Devaluation of currency
(c) Reduction in income taxes
(d) Reduction in excise duty - Balance of payment is an application of ………………………….. .
(a) Single entry book-keeping
(b) Double entry book-keeping
(c) Either (A) or (B)
(d) Neither (A) nor (B) - Absolute Cost Advantage Theory was propounded by ………………….. .
(a) Adam Smith
(b) Ricardo
(c) Malthus
(d) Marshall - Globalisation of financial services is being promoted by :
(a) World Trade Organisation
(b) International Finance Corporation
(c) International Bank for Reconstruction and Development
(d) International Monetary Fund - In which year was the EXIM Bank established ?
(a) 1983
(b) 1984
(c) 1982
(d) 1985 - Comparative cost advantage proposition in international trade was propounded by :
(a) Adam Smith
(b) D. Ricardo
(c) J.A. Frankel
(d) J.M. Fleming - The item labelled ‘interest, profit and dividends’ is included in Balance of Payments as an entry of …………………… .
(a) Capital Account
(b) Financial Account
(c) Current Account Visibles
(d) Current Account invisibles - Which of the following is not aninternational financial institution ?
(a) UNESCO
(b) IMF
(c) IDA
(d) IBRD - When one country has lower opportunity cost of producing a good or service than others it is ……….. .
(a) Comparative advantage
(b) Competitive advantage
(c) Advantage of situation
(d) Policy advantage - A ban on trade in a particular commodity with a particular country is called ……………………….. .
(a) Protection
(b) Embargo
(c) Dumping
(d) Trade treaty - Which of the Accounting Standard (AS) has been withdrawn and merged with another Accounting Standard in 2003 by ICAI ?
(a) AS 11
(b) AS 8
(c) AS 7
(d) AS 3 - ‘Social Accounting’ is concerned with the measurement and discloser of :
(a) Efforts to abolish caste system
(b) Cost and benefits to the society as a result of the activities of the business enterprise
(c) Attempts to seek welfare of employees
(d) Donation to political parties - Exit Route of Venture capital is :
(a) Going public
(b) Upgrading the activities
(c) Further investment
(d) Diversion - Equity investment in high risk,hi-tech and high potential proposal is known as :
(a) Sweat equity capital
(b) Maiden equity capital
(c) Venture equity capital
(d) Promotor equity capital - The following estimations are given by a firm for specific proposals :
Degree of Risk Expected Return Low 24% Medium Low 28% Medium 33% Medium High 39% High 42% The firm has the following proposals with it :
High Risk Proposal Expected Rate of Return Proposal A 39% Proposal B 37% Medium Risk Proposal Proposal C 34% Low Risk Proposal Proposal D 22% Which of the above proposal can be accepted by the firm ?
(a) Project A
(b) Project B
(c) Project C
(d) Project D - Which of the following is not a tool of sales promotion ?
(a) Sales contests
(b) Point of purchase display
(c) Public relation
(d) Free gifts - . …………………………… means charging fairly low price for high quality offering to win loyal consumers.
(a) Value Pricing
(b) Perceived Pricing
(c) Make-up Pricing
(d) Target-return Pricing - Which one of the following is not related to business ethics ?
(a) Social responsibility of business
(b) Environmental ethics
(c) Development of Organisational culture
(d) Ecological consciousness - ……………………….. is quoted as saying that “everyone lives by selling something”.
(a) Bill Gates
(b) Robert Louis Stevenson
(c) Arthur Miller
(d) Henry Ford - The way in which the product is developed to meet the customers need refers to :
(a) New product concept and improvements
(b) Selling
(c) Advertising and promotion
(d) Place and distribution activities - ………………………… is a method of evaluation of quantitative and qualitative aspects of work done by the employee.
(a) Merit rating
(b) Quality assessment
(c) Performance appraisal
(d) Work appraisal - Off the job tranining does not include :
(a) Role Playing
(b) Lecture Method
(c) Coaching
(d) Conference or discussion - Which one of the following is not the purpose of exit interview ?
(a) To try to uncover the real reason behind the quitting by an employee
(b) To locate the probable reasons that contribute to turnover
(c) To assure the departing employee of his rights and benefits
(d) To facilitate the quick termination of an employee - Match the pairs :
List I List II (i) Productivity (a) Technique that evaluates employee potential (ii) Employee welfare (b) Efforts to make life worth living for workmen (iii) Trend analysis (c) Study of firms past employmentneeds to predict future needs (iv) Assessment centre (d) Ratio of inputs to output Consider the factors given in List I and List II and select appropriate order of option :
Codes :
(i) (ii) (iii) (iv)
(a) (a) (c) (d) (b)
(b) (b) (a) (c) (d)
(c) (c) (d) (b) (a)
(d) (d) (b) (c) (a) - The most common activities performed by HR which are outsourced, are :
(a) Recruitment and selection
(b) Occupational health, payroll,pensions and training
(c) Human Resource Planning
(d) Assessment Centres - Which of the following is not the function of WTO ?
(a) To facilitate multilateral trade agreement
(b) To provide forum for negotiation
(c) To administer trade policy review mechanism
(d) To promote global economic stability - …………………………. is defined as ‘substitution of domestic source of supply’ for foreign source of supply.
(a) Export substitution
(b) Import substitution
(c) Commodity substitution
(d) Trade substitution - Which of the following is not the mode of foreign direct investment ?
(a) Wholly owned subsidiary
(b) Joint venture
(c) Franchisee
(d) Acquisition - Match the pairs and select the correct answer from the codes given below :
List I List II (a) Multinational Corporation (i) Incorporated company in the host country which holds more than 50% voting power (b) Subsidiary (ii) Enterprise in the host country in which investor owns at least 10% of the voting power (c) Associate (iii) Investor who is resident of another country and has lasting interest in the management (d) Foreign Affiliate (iv) Corporate enterprises comprising of parent company and its foreign affiliate Codes :
(a) (b) (c) (d)
(a) (iv) (i) (ii) (iii)
(b) (i) (ii) (iii) (iv)
(c) (iii) (iv) (ii) (i)
(d) (i) (iii) (ii) (iv) - When a change in demand and supply alters, the basic circumstances under which earned or spent abroad is called ……….. .
(a) Structural disequilibrium
(b) Technological disequilibrium
(c) Secular disequilibrium
(d) Cyclical disequilibrium - Which of the following income from land situated in India is an agricultural income exempt from income tax ?
(a) Income from Brick Making
(b) Prize from Govt. of Maharashtra on account of higher yield of crop
(c) Dividend from a company engaged in agriculture
(d) Compensation received from insurance company for loss of crop due to flood - The maximum amount on which income tax is not chargeable for A.Y. 2012-13 in case of Registered Partnership Firm is :
(a) Rs.3,00,000
(b) Rs.2,00,000 of Book profit
(c) Rs.50,000 or Rs. 90% of book profit whichever is more
(d) Rs.Nil - Education cess is leviable for A.Y.2012-13 in case of :
(a) Individual and HUF
(b) Educational institutions only
(c) All assessees
(d) Recognised universities - Senior citizen as per Income Tax Act means a person who have attained age of :
(a) 60 years
(b) 62 years
(c) 70 years
(d) 65 years - A Ltd. has incurred for expenditure on in house research related to business during P.Y. 2011-12.
Rs. Land for R&D Building 50,00,000 Building constructed 1,00,00,000 Machinery 2,00,00,000 Total 3,50,00,000 What will be amount of deduction available u/s 35(2AB) of Income Tax Act, 1961 for A.Y. 2012-13 ?
(a) Rs.35,00,000
(b) Rs.7,00,00,000
(c) Rs.6,00,00,000
(d) Rs. 4,50,00,000