- The central problem of economic system is :
(a) Allocation of resources
(b) Economic welfare of common citizens
(c) Selecting right system of economic planning
(d) Achieving the goal of maximum social welfare - Which of the following is not a trade block ?
(a) Commonwealth of Independent States (CIS)
(b) Asia Pacific Economic Cooperation (APEC)
(c) South Asian Free Trade Area (SAFTA)
(d) Asian Union for Economic Welfare (AUEW) - Write the phases of trade cycle in the most appropriate order :
(a) Revival → Recession →Expansion → Contraction
(b) Revival → Expansion →Recession → Contraction
(c) Contraction → Revival →Recession → Expansion
(d) Recession → Contraction →Revival → Expansion - Which of the following is not a right of the consumer ?
(a) Right to safety
(b) Right to be informed
(c) Right to get rewarded
(d) Right to be redressed - Match the following and write the correct answer from the codes given below :
Group ‘A’ Group ‘B’ (1) Globalisation (i) Expansion of economic activities across political boundaries of nation state (2) International (ii) Promotion of Monetary Fund international trade through tariff reduction (3) W.T.O. (iii) Promote exchange stability (4) GATT (iv) Administration of trade policies review mechanism Codes :
(a) (1)-(i) (2)-(iii) (3)-(iv) (4)-(ii)
(b) (1)-(ii) (2)-(iv) (3)-(iii) (4)-(i)
(c) (1)-(i) (2)-(ii) (3)-(iii) (4)-(iv)
(d) (1)-(iv) (2)-(ii) (3)-(i) (4)-(iii) - Which of the following practices is not in connection with the convention of conservatism?
(a) Providing for bad and doubtful debts
(b) Providing for discount on debtors
(c) Providing for discount on creditors
(d) Providing for taxation - Profit-volume ratio is a relation between ……………
(a) Profit and sales volume
(b) Profit and marginal cost
(c) Contribution and sales
(d) Profit and sales value - Discount on issue of debentures is written off ………….
(a) in no case later than the date of redemption
(b) in any period selected by the company
(c) before finalisation of company annual accounts
(d) before redemption of debentures - Amit’s Trial Balance as on 31st March, 2012 includes the following accounting information :
Bad debts Rs. 5,000, discount allowed Rs. 3,000, Provision for discount on debtors Rs. 3,300,Provision for bad and doubtful debts Rs. 5,500, Book debts Rs. 60,000.At the end of the year it is desired to maintain a provision for bad and doubtful debts of Rs. 5,000 and a provision for discount on debtors at Rs. 3,000. Hence, sundry debtors account will
appear in the balance sheet at :
(a) Rs. 52,800
(b) Rs. 43,200
(c) Rs. 52,000
(d) Rs. 44,000 - Rs. 5,000 spent on replacement of worn out part of the machine will be charged as ……………..
(a) Capital expenditure
(b) Revenue expenditure
(c) Deferred Revenue Expenditure
(d) Indirect expenditure - Business Economics is the integration of economic theory with business practice for the purpose of facilitating decision-making and forward planning by management ?
This definition is given by :
(a) Dr. Alfred Marshall
(b) McNair and Meriam
(c) Spencer and Siegelman
(d) Edwin Mansfield - Total revenue – (explicit cost +implicit cost) =
(a) Pure profit
(b) Accounting profit
(c) Gross profit
(d) Monopoly profit - In case of Giffen Goods, compensated demand curve will be :
(a) Upward sloping
(b) Downward sloping
(c) Horizontal
(d) Vertical - Marginal utility approach was finalised by :
(a) J.R. Hicks
(b) Alfred Marshall
(c) J.S. Mill
(d) A.C. Pigou 
- The most important factor in determining the size of sample is ………………
(a) Investigator’s view
(b) Time of survey
(c) Heterogeneity of population
(d) Place of survey - The average of weekly wages of workers in a factory is Rs. 5,500 with the standard deviation Rs. 1,100, then the coefficient of variation of the wages is …………….. %.
(a) 30
(b) 20
(c) 50
(d) 15 - Degrees of freedom for chi-square test of testing the independence of two attributes in case of 4 × 3 contingency table are ……………
(a) 12
(b) 9
(c) 8
(d) 6 - If the two regression lines are given by
x – 3y = 2
x – 2y = 3,
then the arithmetic mean of X is …………..
(a) 3
(b) 2
(c) 1
(d) 5 - If P(A) = 0.6, P(B) = 0.8,P(A ∩ B) = 0.4, then P(A|B) = ………….
(a) 0.6
(b) 0.5
(c) 1.4
(d) 0.3 - Match the following and select the correct answer from the codes given below :
‘A’ ‘B’ (1) Scientific Management (i) McGregor Theory (2) Administrative (ii) Elton Mayo Management Theory (3) Theory ‘X’ and Theory ‘Y’ (iii) Fayol (4) Hawthorne Experiment (iv) Taylor Codes :
(a) (1)-(iii), (2)-(i), (3)-(ii), (4)-(iv)
(b) (1)-(ii), (2)-(iv), (3)-(i), (4)-(iii)
(c) (1)-(iv), (2)-(iii), (3)-(i), (4)-(ii)
(d) (1)-(ii), (2)-(i), (3)-(iv), (4)-(iii) - Max Weber is associated with ……………
(a) Administrative theory
(b) Classical theory
(c) Scientific Management theory
(d) Bureaucracy theory - ……………….. involves a detailed guideline to policy.
(a) Method
(b) Rules
(c) Programme
(d) Procedure - Classical theory of organization focusses on :
(a) Technology
(b) Systems
(c) Work
(d) Management Philospohy - Tom Peters introduced the concept of :
(a) Five Force Analysis
(b) M.B.O. (Management By Objectives)
(c) Liberation Management
(d) Achievement Motivation - Setting call objectives is done during which of the following stages of the selling process ?
(a) Prospecting
(b) Pre-approach
(c) Approach
(d) Handling objections - Which of the following is a demographic basis of market segmentation ?
(a) Lifestyle
(b) Income
(c) Climate
(d) User status - If the sample size increases, the sampling error ………….
(a) decreases
(b) increases
(c) remains constant
(d) sharply increases - Which of the following is a type of open-end questions ?
(a) Likert scale
(b) Attitudinal scale
(c) Multiple choice
(d) Completely unstructural - Which of the following is not a tool of public relation ?
(a) Events
(b) Sponsorship
(c) Publications
(d) Coupons - Assuming that the current ratio of a company is 2 : 1, out of the following, indicate the case where the ratio will remain the same :
(a) Payment of a fixed liability
(b) Purchase of fixed assets
(c) Cash collected from customers
(d) Issue of new shares - The product of asset turnover and profit margin is known as ………….
(a) Operating leverage
(b) Financial leverage
(c) Return on investment leverage
(d) Capital Gearing - Prof. Walter establishes the relationship between ………………… and its influence in the dividend decision.
(a) Capital structure and Average rate of return
(b) Net present value and Profitability index
(c) Internal rate of return and Average rate of return
(d) Internal rate of return and cost of capital - The explicit cost is the ……………which equates the present value of cash inflows with the present value of cash outflows.
(a) Inflated rate
(b) Cumulative rate
(c) Discount rate
(d) Differential rate - The turnover ratio helps the management in …………….
(a) Managing resources
(b) Evaluating performance
(c) Managing a debt
(d) Understanding financial position - …………….. is a process to discover the source of manpower to meet the
requirement of acquiring efficient workforce.
(a) Recruitment
(b) Induction
(c) Manpower planning
(d) Interview - The process of indentifying and developing employees to occupy higher jobs as per organizational need is ……………..
(a) Career planning
(b) Succession planning
(c) Manpower planning
(d) Human Resource Development - ………………….. is a test that measures whether an individual has the capacity to learn a given job if given adequate training.
(a) Aptitude test
(b) Situational test
(c) Achievement test
(d) Job knowledge test - A quality circle should consist of a minimum ……………. members ?
(a) 6
(b) 12
(c) 4
(d) 2 - Which function is not included in staffing ?
(a) Transfer
(b) Recruitment
(c) Induction and orientation
(d) Organisation, planning and development - When the banks are trying to strengthen customer relationship with the help of internet and cyber technology, it is termed as ……………
(a) Universal Banking
(b) Mixed Banking
(c) Retail Banking
(d) Virtual Banking - Match the functions of financial system according to their features and select the correct answer from the codes given below :
I II (a) Savings function (i) Offers an effective mode of payment for goods and services (b) Liquidity function (ii) Link between savers and investors (c) Payment function (iii) Mechanism for mobilisation and controlling risk in mobilisation of savings and credit (d) Risk function (iv) Provides the investor with the opportunity to liquidate ivestment like stock Codes :
(a) (b) (c) (d)
(a) (iii) (ii) (iv) (i)
(b) (iv) (i) (ii) (iii)
(c) (ii) (iv) (i) (iii)
(d) (iii) (i) (iv) (ii) - The State Bank of India came into existence on ……………..
(a) June 1, 1955
(b) May 8, 1955
(c) July 1, 1955
(d) June 12, 1955 - Which of the following is not the advantage of Internet Banking ?
(a) Convenience
(b) Saves money
(c) Needs no formality to open an account
(d) Greater access to different services - Match the following pairs and select the correct answer from the codes given below :
I II (a) Principle of (i) Insurer can acquire Indemnity all remedies available to the insured against third party (b) Principle of (ii) It is the right of an insurable interest insurer to call upon other insurers to pay for losses (c) Doctrine of (iii) Security against loss subrogation (d) Doctrine of (iv) Essential element of contribution every contract of insurance Codes :
(a) (a)-(iii) (b)-(iv) (c)-(i) (d)-(ii)
(b) (a)-(ii) (b)-(i) (c)-(iv) (d)-(iii)
(c) (a)-(iv) (b)-(i) (c)-(ii) (d)-(iii)
(d) (a)-(i) (b)-(iii) (c)-(iv) (d)-(ii) - Which of the following is not the objective of protectionism ?
(a) To protect domestic industries from foreign competition
(b) To promote indigenous research
(c) To discriminate against certain countries
(d) To control corruption within the country - ……………… refers to certain conditions imposed by government in respect of foreign investment in the country.
(a) Trade related investment measures
(b) Trade related financial measures
(c) Trade related economic measures
(d) Trade related competitive measures - Monopoly right granted by law is ……………….
(a) Slogan
(b) Patent
(c) Ownership
(d) Royalty - Which of the following is not a function of foreign exchange market ?
(a) Transfer of purchasing power
(b) Provision of credit
(c) Provision of hedging facilities
(d) Develop efficient exchange control - The exchange rate system that works on market mechanism is termed as …………..
(a) Fixed exchange rate system
(b) Flexible exchange rate system
(c) Capital accounting convertibility
(d) Specific exchange rate system - From the following data, valuation of closing stock as per AS-2 :Fixed production overhead for the year Rs. 4,00,000 Annual normal production : 1,00,000 units Actual production in 2011-12 :50,000 units Closing stock on 31-3-2012 : 2,000 Units Material cost Rs. 100 per unit Labour cost Rs. 50 per unit Fixed Administrator overhead Rs. 2,00,000 Valuation =
(a) Rs. 3,07,500
(b) Rs. 3,08,000
(c) Rs. 4,20,000
(d) Rs. 3,00,000 - Which of the following is the most correct statement ?
(a) Money market is a place where currency is sold
(b) Money market is a place which provides monetary benefit to the public
(c) Money market is a place where borrowers and lenders of money or near money assets are put together
(d) Money market is a very vast concept which virtually includes all types of markets - ‘Sale’ and ‘Lease-Back’ arrangement is suitable for a lessee having :
(a) Surplus fund
(b) High profit
(c) Low profit
(d) Liquidity crises - Which of the following is most correct statement ?
(a) Treasury Bill is a bill of exchnage drawn by treasury over State Bank of India
(b) Treasury Bill is actually a treasure owned by Govt. of India
(c) A Treasury Bill is a particular kind of financial bill/promissory note put out by the Government
(d) Treasury Bill is a Bill of Exchange drawn by RBI over other nationalised bank - Inflation accounting is useful to :
(a) Ascertain the level of inflation
(b) Combat inflation
(c) Bring real results and position to light
(d) Manipulate inflation as a development tool - In relation to product and services, the benefits such as delivery, servicing, warranties and credit facilities are known as :
(a) Core product
(b) Main product
(c) Augmented product
(d) Actual product - To sell FMCG (Fast Moving Consumer Goods), initially …………….. technique is applied.
(a) Mass marketing
(b) Supply factor
(c) Demand factor
(d) One to one marketing - The common element sending a single message amid the wide variety of its products, action and slogan is ……………..
(a) Brand image
(b) Brand identity
(c) Brand loyalty
(d) Brand equity - Arrange the following steps of product development process in appropriate order :
(a) Idea generation → Business analysis → Product development and testing → Idea testing
(b) Idea screening → Idea generation → Concept development → Product development and testing
(c) Idea generation → Concept development and testing → Product development and testing → Product launching
(d) Idea generation → Business analysis → Concept development → Test marketing - Select the correct equation :
Selling price =
(a) Fixed Cost + Variable Cost +Profit
(b) Fixed Cost + Total Cost + Profit
(c) Fixed Cost + Selling overheads + Profit
(d) Fixed Cost + Contribution +Profit - Self-actualisation and esteem needs in Maslow’s theory correspond to the
…………………… factor in Herzberg’s theory.
(a) Interpersonal relations
(b) Working conditions
(c) Challenging work
(d) Quality of supervision - Which of the following is considered a qualitative approach to job analysis ?
(a) Position analysis questionnaire
(b) Interviews
(c) Department of Labour Approach
(d) Functional job analysis - 360° feedback involves appraisals by :
(a) Line Manager
(b) Subordinates
(c) Superiors
(d) Any one who is directly in contact with appraiser - A carefully selected group of employees who voluntarily meet on regular basis to identify problems and made recommendations are :
(a) Quality audit
(b) Quality circle
(c) Quality control
(d) Quality assurance -
Box ‘A’ Box ‘B’ (i) Wage curve (a) Employer denies employees the opportunity to work (ii) Glass ceiling (b) Collective stoppage of work by workers (iii) Lockout (c) An invisible behavior that prevents women from advancing to higher level (iv) Strike (d) Relationship between the value of the job and arrange wage paid for the job Consider the factors given in Box ‘A’and Box ‘B’ and select the appropriate order of action :
(a) (i)-(b) (ii)-(c) (iii)-(d) (iv)-(a)
(b) (i)-(d) (ii)-(c) (iii)-(a) (iv)-(b)
(c) (i)-(c) (ii)-(a) (iii)-(b) (iv)-(d)
(d) (i)-(a) (ii)-(d) (iii)-(c) (iv)-(b) - EXIM Bank can be described as a ……………………
(a) Non-banking Financial Company
(b) Commercial Bank
(c) Non-banking non-financial company
(d) Scheduled Bank - Organisation which is promoting free trade is ……………..
(a) United Nations Development Programme
(b) World Bank
(c) International Monetary Fund
(d) World Trade Organisation - Consider the following cost conditions of goods (in terms of labour) and labour cost of production (in hours)
Country 1 Unit of 1 Unit of Commodity A Commodity B India 120 100 USA 80 90 Now determine which commodity will be exported by U.S.A. :
(a) Commodity A
(b) Commodity B
(c) Both (A) and (B)
(d) Neither (A) nor (B) - In the balance of payment indemnities paid by Foreigners is ……………….
(a) Import of goods
(b) Capital inflow
(c) Unrequited receipts
(d) Unrequited payments - Which one of the following methods of protection depends for success on the elasticity of demand for imports being greater than unity ?
(a) Custom duty
(b) Canalisation
(c) Restriction on capital inflow
(d) Quantitative restriction - Income received and accrued or arisen outside India from any source is taxable in the hands of :
(a) Ordinarily resident
(b) Not ordinarily resident
(c) Non-resident
(d) All assessees - An individual left India permanently on 25th December 2011. The assessment year for the income earned till his departure shall be :
(a) AY 2011-12
(b) AY 2010-11
(c) AY 2012-13
(d) AY 2013-14 - Mr. Ajay took a loan of Rs. 20,00,000 at 10% p.a. on 1-7-2008 for construction of a house which is let-out. The construction was completed in the previous year 2010-11. The amount of interest deductible u/s 24 of Income Tax Act, 1961 for A.Y. 2012-13 assuming that only interest is paid from date of loan, will be :
(a) Rs. 2,00,000
(b) Rs. 1,50,000
(c) Rs. 2,70,000
(d) Rs. 2,80,000 - Gross total income of Mr. A for A.Y. 2012-13 is Rs. 6,00,000. His savings and investments during the previous year were :
(1) P.P.F. Rs. 50,000
(2) R.P.F. contribution Rs. 12,000
(3) Purchase of infrastructure bonds Rs. 40,000 Deduction under chapter VI A will be :
(a) Rs. 1,02,000
(b) Rs. 1,00,000
(c) Rs. 82,000
(d) Rs. 62,000 - Under statement of income in the return of income is called as :
(a) Tax planning
(b) Tax management
(c) Tax evasion
(d) Tax avoidance