KARNATAKA EXAMINATIONS AUTHORITY : Link
- A & B are sharing profits & losses in the ratio of 4 : 3. They admit C and the new profit sharing ratio is 3 : 3 : 2. If C pays Rs.7,000 towards goodwill, A will get
(a) Rs.3,000
(b) Rs.5,500
(c) Rs.4,000
(d) Rs.7,000 - Assume that cost of goods is Rs.7,20,000, duration of gross operating cycle is 70 days, credit period allowed by creditors is 10 days, a year consists of 360 days and the desired cash balance is Rs.10,000. The working capital required for the year is
(a) Rs.3,60,000
(b) Rs.1,20,000
(c) Rs.3,70,000
(d) Rs.1,30,000 - Accumulated value of foreign–owned assets at a given time means
(a) Flow of FDI
(b) Stock of FDI
(c) Out flows of FDI
(d) Inflows of FDI - While computing the equivalent units under average cost method, the degree/s of completion of
(a) Closing WIP is not considered
(b) Opening WIP is not considered
(c) Both opening and closing WIP are considered
(d) Both opening and closing WIP are not considered - An individual working for an executive search firm that seeks out qualified individuals for higher level positions is called
(a) Super individual
(b) Head hunter
(c) Right individual
(d) Appropriate individual - If the co–variance of the random variables X & Y, is equal to zero, then it can be said that the random variables
(a) Are dependent on each other
(b) Have positive correlation
(c) Have negative correlation
(d) None of these - Assume that the municipal value of a house property is Rs.1,05,000, fair rent is Rs.1,07,000, standard rent is Rs.1,35,000 and the actual rent is Rs. 97,000. The gross annual value of the property is
(a) Rs.1,07,000
(b) Rs.1,35,000
(c) Rs.97,000
(d) None of these - When quantity demanded for a product or service increases with a fall in its price referred to as
(a) Contraction of demand
(b) Increase in demand
(c) No change in demand
(d) Decrease in demand - Exemption in respect of value of leave travel concession is available in respect of
(a) One journey performed in a block of 4 calendar years
(b) Two journeys performed in a block of 4 calendar years
(c) Three journeys performed in a block of 4 calendar years
(d) Actual journeys performed in a block of 4 calendar years - When a style becomes popular among lower socio–economic levels and later on becomes popular among higher levels, it is termed as
(a) Trickle up
(b) Trickle down
(c) Trickle across
(d) Trading up - The approach, when human resources are chosen from the nationals of parent country, is called
(a) Polycentric approach
(b) Ethnocentric approach
(c) Geocentric approach
(d) Strategic approach - The theory that emphasises the use of objectives to manage performance
(a) Results theory
(b) Performance theory
(c) Goal theory
(d) Achievement theory - One of the often outsourced HR function
(a) Occupational training and payroll
(b) Recruitment and selection
(c) Human resource planning
(d) Performance evaluation - Effective (or implicit) rate of interest p.a is the function
(a) Frequency of compounding
(b) Basic rate of interest
(c) Both Frequency of compounding & Basic rate of interest
(d) None of these - Which one of the following is providing reserve credit to the member countries facing temporary balance of payment problems ?
(a) IBRD
(b) IMF
(c) IFC
(d) IDA - The multilateral trade organisation is _________
(a) GATT
(b) ITO
(c) WTO
(d) None of these - According to Fisher Effect
(a) Inflation differential > Interest differential
(b) Inflation differential < Interest differential
(c) Inflation differential = Interest differential
(d) None of these - Time value of a call option is
(a) Premium paid – Intrinsic value
(b) Premium paid + Intrinsic value
(c) Intrinsic value – Premium paid
(d) None of these - A market wherein a firm`s product is usable by virtually all the firms in only one or two industries is called
(a) Horizontal business market
(b) Vertical business market
(c) Virtual market
(d) Restricted market - Computation of normal depreciation on the basis of block of assets came into force with effect from the A.Y
(a) 1988–89
(b) 1989–90
(c) 1998–99
(d) None of these - The capital budgeting tool, which is in full consonance with the shareholders` wealth maximisation criterion, is
(a) Profitability index
(b) NPV
(c) IRR
(d) None of these - _________ is the process of differentiating a firm`s products and services to promote environmental responsibility.
(a) Social branding
(b) Eco–branding
(c) Environmental leadership
(d) Market leadership - Rs.The idea that all human beings are themselves the standard by which their actions should be judged. Rs. This is
(a) Moral relativism
(b) Cultural relativism
(c) Traditional relativism
(d) Naive relativism - Long–term capital gain on transfer of listed equity shares is chargeable to tax, if
(a) Asset transferred is a long–term capital asset
(b) Shares are transferred on or after May 1, 2003 but before March 1, 2004
(c) The tax payer holds such shares for a period of 12 months or more
(d) All of these - Leontief paradox contradicted the predictions of
(a) Heckscher – Ohlin theory
(b) Absolute Advantage theory
(c) Comparative Advantage theory
(d) None of these - Plans designed by high ranking managers which define broad goals for the organisation are called
(a) Vision
(b) Strategic plans
(c) Mission
(d) Operational plans - An organisation that has achieved high levels of diversity and one that has few diversity related problems is known as
(a) Multicultural organization
(b) Diversified organisation
(c) Pluralism organization
(d) Geocentric organisation - Culture of any society essentially depends on
(a) The learning and passing down of values
(b) Individual beliefs of people
(c) Changing values over time
(d) How fast new changes are imbibed - Service marketing is also known as __________
(a) Door to door marketing
(b) Marketing of intangible goods
(c) Relationship–based marketing
(d) Transaction–based marketing - An electronic fund transfer system that operates on Deferred Net Settlement basis which settles transitions in batches is referred to
(a) SEFT
(b) EFT
(c) NEFT
(d) RTGS - Which of the following techniques is suitable for testing whether there is significance difference between more than two sample means ?
(a) Chi–square
(b) T–test
(c) F–test
(d) None of these - The risk arising on account of changes in interest rates on two different instruments in an unidentical manner is called
(a) Market risk
(b) Gap risk
(c) Value at risk
(d) Basis risk - Business ethics is _________.
(a) The universal code of conduct enforced in an organisation
(b) Being truthful to the customers
(c) Culturally conditioned agreement on what constitutes right or wrong
(d) Being lawful to all the stakeholders - Reverse synergy implies that the assets/units which are demerged are of
(a) More worth to other firms than the firm itself
(b) Less worth to other firms than the firm itself
(c) Equal worth to both
(d) None of these - An Indian citizen came to India for the first time (after 20 years) on May 28, 2014 and stayed up to December 5, 2014. His residential status is
(a) Resident
(b) Resident but not ordinarily resident
(c) Non–resident
(d) Undefined - The fixed cost is divided by unit sales and then added into variable cost to calculate _________
(a) Unit cost
(b) Mark up cost
(c) Mark up price
(d) Mark up demand - If proprietary ratio is 0.75, working capital is Rs.60,000 and reserves is Rs.40,000, the paid–up share capital will be
(a) Rs.2,40,000
(b) Rs.2,00,000
(c) Rs.4,40,000
(d) None of these - Sugging is :
(a) Giving worthless guarantees
(b) Charging unreasonable prices
(c) Providing low quality product
(d) Selling under the guise of research - Card with an embedded microprocessor loaded with the information necessary to enable payment is called
(a) Virtual Card
(b) Smart Card
(c) Electronic purse
(d) Electronic cash - X Ltd., files its return of income on October 6, 2015 for the assessment year 2015–16. Immediately before submission, it pays a sum of Rs.2.5 crore by way of self–assessment tax. For late submission of return, it is liable for interest under Section X
(a) 234A
(b) 234B
(c) 234C
(d) None of these - Motives for conducting international business are
(a) Offensive market motives
(b) Defensive Market motives
(c) Economic & strategic motives
(d) All of these - When goods are sent by VPP, income accrues at the place where the goods are
(a) Produced
(b) Stored
(c) Despatched
(d) Delivered on payment - Accounting standard, which deals with the contingencies and events accuring after the balance sheet date, is
(a) AS – 10
(b) AS – 04
(c) AS – 40
(d) AS – 01 - Which of the following adjustment/s need/s gearing adjustment under the current cost Accounting ?
(a) Depreciation Adjustment
(b) Cost of sales Adjustment
(c) Monetary working capital Adjustment
(d) All of these - Profit is the product of
(a) Total sales value × P/V ratio
(b) Break–even point sales value × P/V ratio
(c) Margin of safety sales value × P/V ratio
(d) None of these - International Human Resources Management is an academic discipline which focuses on
(a) The movement of people across national borders
(b) The exchange of HR practices
(c) International comparative research
(d) Policies and practices of MNCs - North American Free Trade Agreement (NAFTA) is an example of
(a) Global level Economic integration
(b) Regional level Economic Integration
(c) Commodity level Economic Integration
(d) None of these - Changing the price of a product or service instantly frequently in line with the market price is called
(a) Flexible pricing
(b) Multiple pricing
(c) Market pricing
(d) Dynamic pricing - The main facture/s of ADRs is/are ADR __________
(a) ADRs are Negotiable instruments issued by US banks/ ADR
(b) They represent a claim on underlying foreign securities
(c) Denominated in US dollars
(d) All of these - If the coefficient of correlation between two sets is – 0.85 and the variances of the two sets are 16 & 19, the covariance between the data sets is __________
(a) 10.20
(b) 4.20
(c) 3.20
(d) 7.20 - A drop in the exchange value of a floating currency means
(a) Devaluation
(b) Depreciation
(c) Appreciation
(d) Revaluation - Foreign exchange risk is a positive function of
(a) Foreign exchange exposure
(b) Variance of unanticipated changes in exchange rates
(c) Both Foreign exchange exposure & Variance of unanticipated changes in exchange rates
(d) None of these - The demand for a good is inelastic if __________
(a) The good has many substitutes
(b) The good is luxury
(c) The expenditure for the good is a small part of the consumers income
(d) Consumer takes more time to adjust to change in the prices - Pull factor responsible for child labour is
(a) Lack of education
(b) Poor family background
(c) Cheap labour
(d) Easy management - If NPV is equal to initial investment, the cost of capital is equal to
(a) Nominal cost of capital
(b) Real cost of capital
(c) None of these
(d) Both Nominal cost of capital & Real cost of capital - Foreign indirect investment means the investment by individuals or public bodies in foreign
(a) Physical assets
(b) Financial Assets
(c) Both Physical assets & Financial Assets
(d) None of these - When employees perform work from the client`s work place, it is called
(a) Telecommuting
(b) Cyber link model
(c) Alliance model
(d) Frontline model - Perceptual error made during the selection process is
(a) Candidate`s appearance
(b) Interview setting
(c) Like–me judgements
(d) The way of answering - When the goods purchased do not comply with the expressed condition, a buyer can get relief under
(a) The Sale of Goods Act, 1930
(b) Consumer Protection Act, 1986
(c) The Essential Commodities Act, 1995
(d) The Prevention of Food Adulteration Act, 1954 - Assume that the standard deviation of the return from a security of X Ltd., is 10% and that of the market portfolio is 8%. The correlation coefficient of the share with the market is + 0.7. The beta value of company share will be
(a) 0.560
(b) 0.800
(c) 0.700
(d) 0.875 - The core concept of marketing is
(a) Product
(b) Service
(c) Product and service
(d) Exchange - With a lower level of significance, the probability of rejecting a null hypothesis that is actually true
(a) Decreases
(b) Remains the same
(c) Increases
(d) None of these - One of the most successful industrialists and the forerunner of modern personnel management is
(a) F. W. Taylor
(b) James Watt
(c) Robert Owen
(d) Henry Ford - The main drawback of life–cycle approach to strategic IHRM is __________
(a) No explanation is given as to what happens when a firm comes to the end of its life
(b) The assumption that organisations grow through a defined stages in a specific order
(c) The assumption that firms will grow over a period
(d) There is no focus on the international context - The selection of an international assignee usually takes place through
(a) Informal discussion with staff of the company
(b) Formal interview process with internal staff
(c) Informal discussion among the members of a specific team
(d) Formal recruitment process that includes internal and external applicants - Which of the following is/are associated with in–house management of receivables ?
(a) Cash discount
(b) Opportunity cost of funds blocked
(c) Bad debts
(d) All of these - The two institutions are often called the Bretton Woods Institutions
(a) IMF & IBRD
(b) IMF & WTO
(c) IMF & IFC
(d) IMF & ADB - W. Edwards Deming is known for
(a) Conducting time and motion studies
(b) Evolving incentive schemes
(c) Developing a theory of management
(d) Developing 14 guidelines for top managers - Assume that DOL = 4, DFL = 5 and increase in sales + 4%. The percentage increase in EPS
(a) 80%
(b) 16%
(c) 20%
(d) None of these - WTO came into being on/ WTO
(a) Jan 1, 1995
(b) July 1, 1944
(c) July 1, 1999
(d) None of these - The philosophy of the utmost good for the large number of people is called
(a) Justice approach
(b) Moral approach
(c) Utilitarian approach
(d) Fairness approach - A specific group of people or organisations for which the seller designs a particular marketing mix is called
(a) Market segment
(b) Micro – marketing
(c) Target market
(d) Niche marketing - _________ assumes that the future will be just like the past. __________
(a) Scenario forecast
(b) Linear regression
(c) Econometric model
(d) Delphi forecast - A company absorbs overheads based on machine hours. Budgeted machine hours and budgeted overheads are Rs.11,250 and Rs.2,58,750 respectively. Actual overheads and actual machine hours are Rs.2,54,692 and Rs.10,980 respectively. Overheads are
(a) Under absorbed by Rs.2,152/ Rs.2,152
(b) Under absorbed by Rs.4,058/ Rs.4,058
(c) Over absorbed by Rs.4,058/ Rs.4,058
(d) Over absorbed by Rs.2,152/ Rs.2,152 - A Ltd., whose market value of a share is Rs.50, is acquiring B Ltd., whose market value of a share is Rs.25. The share exchange ratio will be
(a) 0.5
(b) 2
(c) 1
(d) None of these - If the holding company has not purchased the preference shares of a subsidiary company, such shares :
(a) Will be considered while computing minority interest.
(b) Will be considered while computing goodwill capital reserve.
(c) Will not be considered while computing the minority interest.
(d) None of these - For which of the following distributions, the Z–values and the observed values are the same ?
(a) Binominal
(b) Standard Normal variate
(c) Poisson Distribution
(d) None of these - Which of the following accounting concept does not permit to credit inventory holding gains to the P & L A/c. ?
(a) Cost concept
(b) Conservative concept
(c) Dual concept
(d) Business Entity concept - Brands which are sold without much promotional efforts are called
(a) Popular brands
(b) Famous brands
(c) Generic brands
(d) Old and famous brands - Under Indirect method of preparing cash flow statement, net profit before tax and extra–ordinary items is the base for computing cash flows from
(a) Operating activities
(b) Financing activities
(c) Investing activities
(d) All of these - Strike that occurs during the course of a labour contract and is usually undertaken in response to a perceived injustice to the part of management is known as ____
(a) Picketing
(b) Slowdown strike
(c) Wildcat strike
(d) Boycott - In case of amalgamation, if pooling of interest method of accounting is followed
(a) Goodwill appears on the asset side
(b) Capital reserve appears on liability side
(c) Both will appear on the respective sides
(d) Neither goodwill nor capital reserve appears on any side - Aspects of an organisation that must function effectively if the entire organisation is to succeed are popularly called
(a) Performance areas
(b) Key result areas
(c) Important activities
(d) Inevitable activities - Managerial grid to measure a manager`s relative concern for people and production was developed by
(a) Blake and Adams
(b) Robert Blake and Jane Mouton
(c) Robert Blake and John Mouton
(d) Blake and Anne Adams - Applicants who are predicted to be successful and are hired but who ultimately fail are called
(a) False negatives
(b) False positives
(c) Predict failure
(d) Useless employees - A planning cost variance is the difference between
(a) Ex–ante standard cost & actual standard cost
(b) Ex–post standard cost & actual standard cost
(c) Ex–ante standard cost & ex–post standard cost
(d) None of these - Income from which consumers normally purchase luxury goods and services is referred to as
(a) Surplus income
(b) Discretionary income
(c) Income after tax
(d) Excess income - Providing free samples of perfumes in magazines is an example of
(a) Operant conditioning
(b) Classical conditioning
(c) Social conditioning
(d) Behavioural modification - The company and its distribution intermediaries put together called
(a) Supply chain
(b) Value chain
(c) Marketing chain
(d) Business chain - A form of disparate treatment that occurs on a class wide basis is called
(a) Proper discrimination
(b) Employee discrimination
(c) Prejudiced discrimination
(d) Practice discrimination - Transnationality Index (TNI), which is used for gauging the level of MNE, is computed by considering MNE
(a) Ratio of foreign assets to total assets
(b) Ratio of foreign sales to total sales
(c) Ratio of foreign employment to total employment
(d) All of these - The strategy of an organisation treating its total market as a single segment is called
(a) Concentration strategy
(b) Mass market strategy
(c) Universal market strategy
(d) In–depth market strategy - The minimum amount for which a certificate of deposit can be issued is
(a) Rs.One lakh/
(b) Rs.Two lakh
(c) Rs.Five lakh
(d) Rs.Ten lakh - A firm operating in a perfectly competitive market will be productively efficient
(a) Only in the short run
(b) Only in the long run
(c) Both in short and long run
(d) Only if it is making super normal profits - The key feature of oligopolistic competition is
(a) Interdependence of sellers
(b) Emphasis on price competition
(c) Horizontal demand curve
(d) Many small sellers - In case of a corporate assesee, the due date is on or before March 15 of the relevant previous year, if the advance tax payable is upto
(a) 15%
(b) 45%
(c) 5%
(d) 100% - Debentures are governed by
(a) Banking Regulation Act, 1949
(b) Negotiable Instruments Act, 1881
(c) Law of Contract, 1872
(d) None of these - Market segmentation based on attributes related to how a person thinks, feels and behaves is called
(a) Psychological segmentation
(b) Psychographic segmentation
(c) Life–style segmentation
(d) Personality segmentation - Feature of an organisation that is perceived as desirable and different from its competitors is known as __________
(a) Brand image
(b) Preferential advantage
(c) Differential advantage
(d) Market advantage - Assume that IRR = 16% & the cost of capital sensitivity is 60%. Then, the cost of capital will be
(a) 16%
(b) 9.6%
(c) 6%
(d) 10%
Answer Key
1 (b) 2 (d) 3 (b) 4 (b) 5 (b) 6 (d) 7 (a) 8 (*) 9 (b) 10 (a) 11 (b) 12 (c) 13 (a) 14 (c) 15 (b) 16 (c) 17 (c) 18 (a) 19 (b) 20 (a) 21 (b) 22 (b) 23 (d) 24 (d) 25 (a) 26 (b) 27 (a) 28 (a) 29 (b) 30 (c) 31 (d) 32 (d) 33 (c) 34 (a) 35 (b) 36 (a) 37 (b) 38 (d) 39 (b) 40 (a) 41 (d) 42 (d) 43 (b) 44 (d) 45 (c) 46 (d) 47 (b) 48 (d) 49 (d) 50 (*) 51 (b) 52 (c) 53 (c) 54 (c) 55 (c) 56 (b) 57 (d) 58 (c) 59 (a) 60 (d) 61 (d) 62 (a) 63 (c) 64 (b) 65 (a) 66 (d) 67 (a) 68 (d) 69 (a) 70 (a) 71 (c) 72 (c) 73 (b) 74 (a) 75 (a) 76 (a) 77 (b) 78 (b) 79 (c) 80 (a) 81 (c) 82 (d) 83 (b) 84 (b) 85 (b) 86 (c) 87 (b) 88 (a) 89 (b) 90 (d) 91 (d) 92 (b) 93 (a) 94 (b) 95 (a) 96 (d) 97 (d) 98 (b) 99 (c) 100 (d)
Business Environment & International Business
- Accumulated value of foreign–owned assets at a given time means
(A) Flow of FDI
(B) Stock of FDI
(C) Out flows of FDI
(D) Inflows of FDI - Which one of the following is providing reserve credit to the member countries facing temporary balance of payment problems ?
(A) IBRD
(B) IMF
(C) IFC
(D) IDA - The multilateral trade organisation is _________
(A) GATT
(B) ITO
(C) WTO
(D) None of these - Leontief paradox contradicted the predictions of
(A) Heckscher – Ohlin theory
(B) Absolute Advantage theory
(C) Comparative Advantage theory
(D) None of these - Motives for conducting international business are
(A) Offensive market motives
(B) Defensive Market motives
(C) Economic & strategic motives
(D) All of these - A drop in the exchange value of a floating currency means
(A) Devaluation
(B) Depreciation
(C) Appreciation
(D) Revaluation - Foreign indirect investment means the investment by individuals or public bodies in foreign
(A) Physical assets
(B) Financial Assets
(C) Both Physical assets & Financial Assets
(D) None of these - The two institutions are often called the Bretton Woods Institutions
(A) IMF & IBRD
(B) IMF & WTO
(C) IMF & IFC
(D) IMF & ADB - WTO came into being on/ WTO
(A) Jan 1, 1995
(B) July 1, 1944
(C) July 1, 1999
(D) None of these - North American Free Trade Agreement (NAFTA) is an example of
(A) Global level Economic integration
(B) Regional level Economic Integration
(C) Commodity level Economic Integration
(D) None of these
Accounting & Auditing
- A & B are sharing profits & losses in the ratio of 4 : 3. They admit C and the new profit sharing ratio is 3 : 3 : 2. If C pays Rs.7,000 towards goodwill, A will get
(A) Rs.3,000
(B) Rs.5,500
(C) Rs.4,000
(D) Rs.7,000 - While computing the equivalent units under average cost method, the degree/s of completion of
(A) Closing WIP is not considered
(B) Opening WIP is not considered
(C) Both opening and closing WIP are considered
(D) Both opening and closing WIP are not considered - If proprietary ratio is 0.75, working capital is Rs.60,000 and reserves is Rs.40,000, the paid–up share capital will be
(A) Rs.2,40,000
(B) Rs.2,00,000
(C) Rs.4,40,000
(D) None of these - Accounting standard, which deals with the contingencies and events accuring after the balance sheet date, is
(A) AS – 10
(B) AS – 04
(C) AS – 40
(D) AS – 01 - Which of the following adjustment/s need/s gearing adjustment under the current cost Accounting ?
(A) Depreciation Adjustment
(B) Cost of sales Adjustment
(C) Monetary working capital Adjustment
(D) All of these - Profit is the product of
(A) Total sales value × P/V ratio
(B) Break–even point sales value × P/V ratio
(C) Margin of safety sales value × P/V ratio
(D) None of these - A company absorbs overheads based on machine hours. Budgeted machine hours and budgeted overheads are Rs.11,250 and Rs.2,58,750 respectively. Actual overheads and actual machine hours are Rs.2,54,692 and Rs.10,980 respectively. Overheads are
(A) Under absorbed by Rs.2,152/ Rs.2,152
(B) Under absorbed by Rs.4,058/ Rs.4,058
(C) Over absorbed by Rs.4,058/ Rs.4,058
(D) Over absorbed by Rs.2,152/ Rs.2,152 - A Ltd., whose market value of a share is Rs.50, is acquiring B Ltd., whose market value of a share is Rs.25. The share exchange ratio will be
(A) 0.5
(B) 2
(C) 1
(D) None of these - If the holding company has not purchased the preference shares of a subsidiary company, such shares :
(A) Will be considered while computing minority interest.
(B) Will be considered while computing goodwill capital reserve.
(C) Will not be considered while computing the minority interest.
(D) None of these - Which of the following accounting concept does not permit to credit inventory holding gains to the P & L A/c. ?
(A) Cost concept
(B) Conservative concept
(C) Dual concept
(D) Business Entity concept - Under Indirect method of preparing cash flow statement, net profit before tax and extra–ordinary items is the base for computing cash flows from
(A) Operating activities
(B) Financing activities
(C) Investing activities
(D) All of these - In case of amalgamation, if pooling of interest method of accounting is followed
(A) Goodwill appears on the asset side
(B) Capital reserve appears on liability side
(C) Both will appear on the respective sides
(D) Neither goodwill nor capital reserve appears on any side - A planning cost variance is the difference between
(A) Ex–ante standard cost & actual standard cost
(B) Ex–post standard cost & actual standard cost
(C) Ex–ante standard cost & ex–post standard cost
(D) None of these - Debentures are governed by
(A) Banking Regulation Act, 1949
(B) Negotiable Instruments Act, 1881
(C) Law of Contract, 1872
(D) None of these
Business Finance
- Assume that cost of goods is Rs.7,20,000, duration of gross operating cycle is 70 days, credit period allowed by creditors is 10 days, a year consists of 360 days and the desired cash balance is Rs.10,000. The working capital required for the year is
(A) Rs.3,60,000
(B) Rs.1,20,000
(C) Rs.3,70,000
(D) Rs.1,30,000 - Time value of a call option is
(A) Premium paid – Intrinsic value
(B) Premium paid + Intrinsic value
(C) Intrinsic value – Premium paid
(D) None of these - The capital budgeting tool, which is in full consonance with the shareholders` wealth maximisation criterion, is
(A) Profitability index
(B) NPV
(C) IRR
(D) None of these - The main facture/s of ADRs is/are ADR __________
(A) ADRs are Negotiable instruments issued by US banks/ ADR
(B) They represent a claim on underlying foreign securities
(C) Denominated in US dollars
(D) All of these - A drop in the exchange value of a floating currency means
(A) Devaluation
(B) Depreciation
(C) Appreciation
(D) Revaluation - Foreign exchange risk is a positive function of
(A) Foreign exchange exposure
(B) Variance of unanticipated changes in exchange rates
(C) Both Foreign exchange exposure & Variance of unanticipated changes in exchange rates
(D) None of these - Which of the following is/are associated with in–house management of receivables ?
(A) Cash discount
(B) Opportunity cost of funds blocked
(C) Bad debts
(D) All of these - Assume that DOL = 4, DFL = 5 and increase in sales + 4%. The percentage increase in EPS
(A) 80%
(B) 16%
(C) 20%
(D) None of these - Assume that IRR = 16% & the cost of capital sensitivity is 60%. Then, the cost of capital will be
(A) 16%
(B) 9.6%
(C) 6%
(D) 10% - Effective (or implicit) rate of interest p.a is the function
(A) Frequency of compounding
(B) Basic rate of interest
(C) Both Frequency of compounding & Basic rate of interest
(D) None of these
Banking & Finance
- An electronic fund transfer system that operates on Deferred Net Settlement basis which settles transitions in batches is referred to
(A) SEFT
(B) EFT
(C) NEFT
(D) RTGS - Card with an embedded microprocessor loaded with the information necessary to enable payment is called
(A) Virtual Card
(B) Smart Card
(C) Electronic purse
(D) Electronic cash - The minimum amount for which a certificate of deposit can be issued is
(A) Rs.One lakh/
(B) Rs.Two lakh
(C) Rs.Five lakh
(d) Rs.Ten lakh
Legal Aspect of Business
- When the goods purchased do not comply with the expressed condition, a buyer can get relief under
(A) The Sale of Goods Act, 1930
(B) Consumer Protection Act, 1986
(C) The Essential Commodities Act, 1995
(D) The Prevention of Food Adulteration Act, 1954 - The philosophy of the utmost good for the large number of people is called
(A) Justice approach
(B) Moral approach
(C) Utilitarian approach
(D) Fairness approach
Income Tax
- Assume that the municipal value of a house property is Rs.1,05,000, fair rent is Rs.1,07,000, standard rent is Rs.1,35,000 and the actual rent is Rs. 97,000. The gross annual value of the property is
(A) Rs.1,07,000
(B) Rs.1,35,000
(C) Rs.97,000
(D) None of these - Exemption in respect of value of leave travel concession is available in respect of
(A) One journey performed in a block of 4 calendar years
(B) Two journeys performed in a block of 4 calendar years
(C) Three journeys performed in a block of 4 calendar years
(D) Actual journeys performed in a block of 4 calendar years - Long–term capital gain on transfer of listed equity shares is chargeable to tax, if
(A) Asset transferred is a long–term capital asset
(B) Shares are transferred on or after May 1, 2003 but before March 1, 2004
(C) The tax payer holds such shares for a period of 12 months or more
(D) All of these - Long–term capital gain on transfer of listed equity shares is chargeable to tax, if
(A) Asset transferred is a long–term capital asset
(B) Shares are transferred on or after May 1, 2003 but before March 1, 2004
(C) The tax payer holds such shares for a period of 12 months or more
(D) All of these - An Indian citizen came to India for the first time (after 20 years) on May 28, 2014 and stayed up to December 5, 2014. His residential status is
(A) Resident
(B) Resident but not ordinarily resident
(C) Non–resident
(D) Undefined - In case of a corporate assesee, the due date is on or before March 15 of the relevant previous year, if the advance tax payable is upto
(A) 15%
(B) 45%
(C) 5%
(D) 100% - Computation of normal depreciation on the basis of block of assets came into force with effect from the A.Y
(A) 1988–89
(B) 1989–90
(C) 1998–99
(D) None of these - X Ltd., files its return of income on October 6, 2015 for the assessment year 2015–16. Immediately before submission, it pays a sum of Rs.2.5 crore by way of self–assessment tax. For late submission of return, it is liable for interest under Section X
(A) 234A
(B) 234B
(C) 234C
(D) None of these - When goods are sent by VPP, income accrues at the place where the goods are
(A) Produced
(B) Stored
(C) Despatched