The degree of financial leverage reflects the responsiveness of :
(a) Operating income to change in total revenue
(b) EPS to changes in EBIT
(c) EPS to changes in total revenue
(d) None of the above
The rate of discount at which NPV of a project becomes zero is also known as:
(a) Average rate of return
(b) Internal rate of return
(c) Alternate rate of return
(d) Invisible rate of return
The very specific and detailed guide to action is called:
(a) Rule
(b) Procedure
(c) Policy
(d) Strategy
Which function is regarded as essence of management?
(a) Planning
(b) Organising
(c) Directing
(d) Coordinating
Which one of the following is evident from an organisation chart?
(a) Authority relationship
(b) All channels of communication
(c) Division of work
(d) Responsibility relationship
What is the mass marketing?
(a) Offering the same products and marketing mix to all consumers
(b) Offering variety of products to entire market
(c) Offering differentiated products to all customers
(d) Following concentrated marketing strategy
Market greeding meands?
(a) Establishing and running a web marketing faculity
(b) A method of survey of expert’s opinion
(c) Managing brands and developing brand equity
(d) An analytical technique which facilities dividing a market into segments
Imperial Bank was established on January 27,1921 on the advice of:
(a) J.M. Keynes
(b) Lord Illingworth
(c) King George V
(d) Winston Churchill
CRA stands for
(a) Capital Adequacy Norms
(b) Capital rate average
(c) Cost rate average
(d) Cost reserve ratio
A agrees to buy from B a certain horse for Rs. 1,000. It turns out that horse was dead at the time of bargain,though neither party was aware of the fact. This agreement is:
(a) Valid
(b) Voidable
(c) Void
(d) None of the above
The Indian partnership Act was established on
(a) 1932
(b) 1832
(c) 1947
(d) 1956
Delivering the keys of a godown in which goods sold are stored amounts to:
(a) Actual delivery
(b) Symbolic delivery
(c) Delivery by attornment
(d) None of the above
The auditory of a Government Company is appointed or reappointed by:
(a) The comptroller and Auditor General of India
(b) Board of Director
(c) Share Holders
(d) ICAI
Implied agency arises:
(a) Out of necessity
(b) From the conduct of the parties
(c) By operation of law
(d) All of the above
Actual value less estimated value is known as
(a) Absolute cost
(b) Budget cost
(c) Standard cost
(d) None of all
It is a predetermined cost on a scientific basis taking into consideration all the factors relating to cost like raw material consumption rate,labor efficiency,machine effiency etc.
(a) Estimate cost
(b) Budget cost
(c) Standard cost
(d) None of all
The best suited fund for the business people is
(a) Income fund
(b) Balance fund
(c) Growth fund
(d) Taxation fund
‘Advance-decline ratio is a ratio applicable in
(a) Fundamental analysis
(b) Trend analysis
(c) Technical analysis
(d) Cost-benefit analysis
‘Window dressing’ is associated with
(a) Current ratio
(b) Quick ratio
(c) Debt-Equity ratio
(d) Proprietary ratio
If a negative value appear in the solution values (Xs) column of the simplex table , then_
(a) The solution is optimal
(b) The solution is infeasible
(c) The solution is unbounded
(d) (a) and (b)
Which of the following is correctly matched?
(a) Pictogram – oral presentation of data
(b) Histogram – graphic presentation of data
(c) Histogram – diagrammatic presentation of data
(d) Cartogram – diagrammatic and graphic
With the lower significance level of probability of rejecting a null hypothesis that is actually true
(a) Decrease
(b) Remains the same
(c) Increase
(d) None of the above
A technique used when selecting clusters of different sizes is called
(a) Cluster sampling
(b) One stage sampling
(c) Two stage sampling
(d) Probability proportional to size or PPS
Accepting null hypothesis when it is incorrect, known as
(a) Error of statistics
(b) Error of sampling
(c) Error of data
(d) None of the above
Homemade leverage is concept applied in
(a) MM approach
(b) NI approach
(c) NOI approach
(d) Traditional approach
‘DAX’ is the stock index related to the stock exchange located in
(a) Germany
(b) France
(c) Mexico
(d) Brazil
The forward rate in equal to the spot rate to prevail on the days of settlement of forward contract is as per
(a) Purchasing power parity theory
(b) Interest rate parity theory
(c) Unbiased forward rate theory
(d) International fisher effect
Bond washing transaction relate to
(a) Salary
(b) Income from business
(c) Capital gain
(d) Income other source
The first foreign entity to issue Indian Depository Receipts.
(a) Standard Chartered Bank
(b) Citi Bank
(c) HSBC
(d) Royal Bank of Scotland
For the Assessment Year 2012-2013 short term capital gain on sale of shares is taxed at
(a) 20%
(b) 15%
(c) 30%
(d) None of the above
Exemption for capital gains arising from the transfer of land used for agricultural purpose is given under section
(a) 54
(b) 54D
(c) 54B
(d) None of the above
Profit and loss is arrived at as per
(a) Dual aspect concept
(b) Matching concept
(c) Realisation concept
(d) Money measurement concept
In which of the following account a third bank is
(a) NOSTRO Account
(b) VOSTRO Account
(c) LORO Account
(d) All of the above
Which one of the following is not an indirect tax?
(a) Custom duty
(b) Estate duty
(c) Excise duty
(d) Octroi duty
Which of the following is not a limitation of SWOT (Strengths,Weakness,Opportunity,Threats)analysis?
(a) Organisation strengths may not lead to competitive advantage
(b) SWOT gives a one shot view of a moving target
(c) SWOT’s focus on the external environment is too broad and integrative
(d) SWOT overmphasizes a single dimension of strategy
XYZ crop, is entering on the objective of low cost, high quality on time production by curtailing idle productive facilities and workers. The XYZ corp.is taking advantage of a______system.
(a) Just-in-Time(JIT)
(b) Last in,First Out (LIFO)
(c) Highly mechanized
(d) First In , First Out(FIFO)
In finance we refer to the market for short-term government and corporate debt securities as the__market.
(a) Capital
(b) Primary
(c) Secondary
(d) Money
Who is the present commerce minister of India?
(a) Anand Sharma
(b) S.M. Krishna
(c) Vilas rao Deshmukh
(d) P. Chidambram
DTAA refers to
(a) Double taxation Avoidance Agreement
(b) Direct Tax American Agreement
(c) Double Taxation Aviation Agreement
(d) Direct Treaty of Avoidance Agreement
The duties of company secretary regarding company meetings are restricted up to-
(a) Before company meeting
(b) During company meeting
(c) After company meeting
(d) In all above situations
Partnership deed is always?
(a) Written
(b) Oral
(c) Written or Oral
(d) Written and Oral
Which of the following appears in cost accounts and not in profit and loss account?
(a) Raw materials
(b) Rent of house of the business owner
(c) Works overhead
(d) Selling and distribution expenses
An electronic check is one form of what?
(a) e-commerce
(b) online banking
(c) e-cash
(d) check
A set of possible values that a random variable can assume and their associated probabilities of occurrence are referred to as-(a) Probability distribution
(b) The expected return
(c) The standard deviation
(d) Coefficient of variation
Who is the father of India’s new economic policy of 1991?
(a) Dr. Manmohan Singh
(b) Amartya sen
(c) PV Narasimha Rao
(d) Jawaharlal Nehru
Which of the following information forms available to the marketing manager can usually be accessed more quickly and cheaply than other information sources?
(a) Marketing intelligence
(b) Marketing research
(c) Customer profile
(d) Internal databases
The descending order in which current assets should be shown in the balance sheet is:
(a) Cash,Bank,Debtors,Stock
(b) Stock,Debtors,Bank,Cash
(c) Debtors,Stock,Bank,Cash
(d) Stock,Debtors,Cash,Bank
An Organisation structure is effective if it enables individuals to contribute to the objectives of the enterprise. This is known as:
(a) Scalar principal
(b) Principal of functional definition
(c) Principal of unity of objectives
(d) None of the above
Two indifference curves cannot intersect each other because each indifference curve:
(a) Represents a unique level of satisfaction
(b) Slops downward in the graph
(c) Convexes to the origin
(d) Cannot touch the axis
Optimisation is emphasized when there are:
(a) No constraints
(b) Constraints of resources
(c) Abundance of resources
(d) No time constraint
Price effect is the sum of
(a) Income effect and substitution effect
(b) Cross effect and substitution effect
(c) Income effect and inflation effect
(d) Substitution effect and inflation effect
The rate at which RBI extends credit facilities to commercial banks:
(a) Statutory liquidity rate
(b) Reserve repo rate
(c) Repo rate
(d) Inter bank offered rate
The growth rate of economy normally refers to the rate of increase of
(a) GNP
(b) GDP
(c) NDP
(d) NNP
Globalization places thrust on
(a) Reduction of budget subsidies
(b) Fall in transport costs
(c) Promotion of extended competition
(d) Removal of restrictions on MNCs
Under which test,the test statistics takes only positive value
(a) x2 test
(b) t-test
(c) Run-test
(d) Z -test
Which of the following is not an example of compressed data?
(a) Frequency curve
(b) Frequency distribution
(c) Data array
(d) Histogram
Packaging together two or more products,usually complementary ones,to be sold for a single price is known as
(a) Group pricing
(b) Reference pricing
(c) Bundle pricing
(d) Multiple unit pricing
Fencing of dangerous machines in a factory is a
(a) Labour health measure
(b) Labour safety measure
(c) Labour welfare measure
(d) Labour rights measure
In transaction analysis of interpersonal relations the stimulus response pattern that underlies effective relations is
(a) Parallel transaction
(b) Crossed transaction
(c) Ulterior transaction
(d) Accidental transaction
India’s foreign trade is characterized by
(a) Surplus current account
(b) Deficit invisible trade
(c) Surplus visibles trade
(d) Deficit balance of trade
Which of the following is related to accounting standards?
(a) GAAR
(b) GAAP
(c) IAAS
(d) FASB
Which of the following is not included in the assumptions on which Myron Gordon proposed a model on stock valuation?
(a) Retained earning,the only source of financing
(b) Finite life of the firm
(c) Taxes do not exist
(d) Constant rate of return on firm’s investment
BRICS includes
(a) Bhutan,Romania,Indonesia,Chile and South korea
(b) Brazil,Russia,Indonesia,Chile and Sudan
(c) Brazil,Russia,India,China,and South Africa
(d) Britain,Russia,India,Czechoslovakia,Sri Lanka
One of the items is not related with e-banking:
(a) Demand Draft
(b) SPNS
(c) ECS
(d) ATM
Sampling frame is :
(a) A summary of the various stages involved in designing a survey
(b) An outline view of all the main clusters of units in a sample
(c) A list of all the units in the populations from which a sample will be selected
(d) A wooden frame used to display tables of random numbers
The standard error is a statistical measure of:
(a) The normal distribution of score around the sample mean
(b) The extent to which a sample mean is likely to differ from the population mean
(c) The clustering of score at each and of a survey scale
(d) The degree to which a sample has been accurately stratified
What effect does increasing the sample size have upon the sampling error?
(a) It reduces the sampling error
(b) It increases the sampling error
(c) It has no effect on the sampling error
(d) None of the above
Which of the following is not a type of non-prohability sampling?
(a) Snowball sampling
(b) Stratified random sampling
(c) Quota sampling
(d) Convenience sampling
The findings from a study of young single mothers at a university can be generalised to the population of:
(a) All young single mothers at that university
(b) All young single mothers in that society
(c) All single mothers in all universities
(d) All young women in that university
What is the difference between interval/ratio and ordinal variables?
(a) The distance between categories is equal across the range of interval/ratio data
(b) Ordinal data can be rank ordered but interval/ratio data cannot
(c) Interval/ratio variables contain only two categories
(d) Ordinal variables have a fixed zero point,whereas interval/ratio variables do not
What is the differences between a bar chart and a histogram?
(a) A histogram does not show the entire range of score in a distribution
(b) Bar charts are circular,whereas histograms are square
(c) There are not gaps between the bars on a histogram
(d) Bar charts represents numbers.whereas histogram represent perecentages
What is an outlier?
(a) A type of variable that cannot be quantified
(b) A compulsive liar who is proud to be gay
(c) A score that is left out of the analysis because of missing data
(d) An extreme value at either end of a distribution
What is the function of a contingency table,in the context of bivariate analysis?
(a) It shows the results you would expect to find by chance
(b) It summarises the frequencies of two variables so that they can be compared
(c) It list’s the different levels of p value for tests of significance
(d) It compares the results you might get from various statistical tests
If there were a perfect positive correlation between two interval/ratio variables.the person’s r test would give a correlation coefficient of:
(a) 0.328
(b) +1
(c) +0.328
(d) 1
Managing earning through accounting manipulation is known as
(a) Dirty surplus
(b) Earning management
(c) Management by earning
(d) Income surplus
_______is the date at which the enterprise and the employee agree to share based payment arrangement
(a) Grant date
(b) Closing date
(c) Agreement date
(d) Balance sheet date
The currency used in presenting financial statement that currency is known as
(a) Domestic currency
(b) Foreign currency
(c) Reporting currency
(d) None of the above
VRS is an example of
(a) Termination benefit
(b) Short term benefit
(c) Long term benefit
(d) Defined contribution plan
Joint control in joint venture is usually established by:
(a) Equal holding of voting rights by all joint venture partners
(b) An informal contractual arrangement
(c) A contractual arrangement writing
(d) A statutory requirement
The variable cost are the cost that tend to vary with level of activity and there is a linear relationship between volume and variable costs. These cost are called
(a) Engineered cost
(b) Re engineered cost
(c) Sunk cost
(d) Imputed cost
Systematic regulation of stock level is known as
(a) Stock management
(b) Stock Control
(c) Stock maintenance
(d) Stock valuation
Bill of material is comprehensive list of materials and prepared by
(a) Engineering departments
(b) Productions department
(c) Purchase depaetment
(d) Store department
HIFO is a method of
(a) Pricing material issues
(b) Material pricing
(c) Costing
(d) Pricing
It is incidental residue from the material used in manufacturing operation which is recoverable and measurable with out processing
(a) Defective
(b) Scrap
(c) Spoilage
(d) Waste
The value of the bond depends on
(a) The coupon rate
(b) Years to maturity
(c) Expected yield to maturity
(d) All of the above
A stock of Rs.10 face value has declared 35%dividend for the current year.the stock is currently selling for Rs.40 .What is its dividend yield?
(a) 35%
(b) 70%
(c) 8.75%
(d) 8.5%
Gross domestic product is a logical factor to analyse the economy in picking up a stock because it indicates
(a) Inflation or deflation
(b) The market value of assets
(c) The status of the economy
(d) The condition of the stock market
The rise of dividend tax from 10% to 20% in a broader sense affects
(a) The investor
(b) The corporate
(c) The stock market
(d) The financial institutions
In the bull market
(a) The stock prices are increasing
(b) Each peak is higher than the previous peak
(c) Each bottom is higher than the previous bottom
(d) (b) and (c)
The inflation free instrument is
(a) Option bond
(b) Index-linked guilt bond
(c) Leasing
(d) Deep discount bond
Customer’s protection fund is set up
(a) To protect the investors against price fluctuations
(b) To protect the broker in case of non payment of money by investors
(c) To provide insurance to investors in case of default by the members
(d) To protect the member and the investors
Asset generally not suitable for securitization is
(a) Receivables from Government department
(b) Trade receivables
(c) Hire purchase finance receivables
(d) Mortgage loans
A man saves every year Rs.4,000 and invests it at the end of the year at 10 per cent per annum compound interest. Calculate the total amount of his savings at the end of the third year.
(a) 13,260
(b) 13,230
(c) 13,240
(d) 13,250
The just-in-time inventory system is difficult to implement because
(a) It is a Japanese system
(b) It requires reliable suppliers who are easily accessible
(c) It requires the use of highly sophisticated manufacturing systems
(d) The traditional formula for EOQ cannot be applied
The assets that can be delivered against a futures contract are called
(a) Speculated assets
(b) Hedged assets
(c) Cash and carry arbitraged assets
(d) Carriable assets
Buying and selling call or put option with the same strike price but different expiration dates is called
(a) Long hedge
(b) Short hedge
(c) Horizontal option spread
(d) Nearby contract
When the strike price of an option is equal to the spot price of the underlying asset at the expiration date/exercise date,then the option is said to be
(a) Deep – In -the -money
(b) In – the – money
(c) Out- of – the -money
(d) At-the -money
Which of the following is not a benefit arising from”netting”?
(a) Ensuring diversification
(b) Creating liquidity
(c) Reducing the number of transactions actually executed
(d) None of the above
