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MH SET 2018: 28 January, Paper II, Commerce

  • Date: 28 January 2018
  • Paper code: JAN50218
  • Series: A
  • Language: Bilingual
  • 24 pages
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Test Booklet Code & Serial No.
                                                                                                                     A
                                                               Paper-II
                                                              COMMERCE
Signature and Name of Invigilator                                                                 Seat No.
1. (Signature) .........................................                                                   (In figures as in Admit Card)
      (Name) ................................................                    Seat No. ..............................................................
2. (Signature) .........................................                                                   (In words)

      (Name) ................................................                      OMR Sheet No.

JAN - 50218                                                                                          (To be filled by the Candidate)
Time Allowed : 1¼ Hours]                                                                             [Maximum Marks : 100
Number of Pages in this Booklet : 24                                                    Number of Questions in this Booklet : 50
                     Instructions for the Candidates
1.        Write your Seat No. and OMR Sheet No. in the space provided             1.
          on the top of this page.
2.        This paper consists of 50 objective type questions. Each question
          will carry two marks. All questions of Paper-II will be compulsory,     2.
          covering entire syllabus (including all electives, without options).
3.        At the commencement of examination, the question booklet
          will be given to the student. In the first 5 minutes, you are
                                                                                  3.
          requested to open the booklet and compulsorily examine it as
          follows :
          (i)      To have access to the Question Booklet, tear off the
                   paper seal on the edge of this cover page. Do not accept               (i)
                   a booklet without sticker-seal or open booklet.
          (ii)     Tally the number of pages and number of questions
                   in the booklet with the information printed on the                     (ii)
                   cover page. Faulty booklets due to missing pages/
                   questions or questions repeated or not in serial
                   o rder or any other discre pancy should not be
                   accepted and correct booklet should be obtained
                   from the invigilator within the period of 5 minutes.
                   Afterwards, neither the Question Booklet will be
                   replaced nor any extra time will be given. The same
                   may please be noted.
          (iii)    After this verification is over, the OMR Sheet Number
                   should be entered on this Test Booklet.                                (iii)
4.        Each question has four alternative responses marked (A), (B),
          (C) and (D). You have to darken the circle as indicated below on        4.                       (A), (B), (C)   (D)
          the correct response against each item.
          Example : where (C) is the correct response.

                             A        B                 D                                            (C)
5.        Your responses to the items are to be indicated in the OMR                                       A         B            D
          Sheet given inside the Booklet only. If you mark at any place
          other than in the circle in the OMR Sheet, it will not be evaluated.    5.
6.        Read instructions given inside carefully.
7.        Rough Work is to be done at the end of this booklet.                    6.
8.        If you write your Name, Seat Number, Phone Number or put                7.
          any mark on any part of the OMR Sheet, except for the space
                                                                                  8.
          allotted for the relevant entries, which may disclose your
          identity, or use abusive language or employ any other unfair
          means, you will render yourself liable to disqualification.
9.        You have to return original OMR Sheet to the invigilator at the
          end of the examination compulsorily and must not carry it with          9.
          you outside the Examination Hall. You are, however, allowed
          to carry the Test Booklet and duplicate copy of OMR Sheet on
          conclusion of examination.                                              10.
10.       Use only Blue/Black Ball point pen.
                                                                                  11.
11.       Use of any calculator or log table, etc., is prohibited.
12.       There is no negative marking for incorrect answers.                     12.
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JAN - 50218/II—A
                                           Commerce
                                            Paper II


                                                        II
Time Allowed : 75 Minutes]                           [Maximum Marks : 100
Note : This paper contains Fifty (50) multiple choice questions. Each question
       carrying Two (2) marks. Attempt All questions.
                              (50)                                          (2)



1.   Which of the Government’s policy in           1.

     respect of public expenditure and

     revenue has a significant impact on

     business ?

     (A) Monetary policy                                 (A)

     (B) Fiscal policy                                   (B)

     (C) Trade policy                                    (C)

     (D) Foreign exchange policy                         (D)

2.   SEZ stands for .................. .           2.    SEZ

     (A) Special European Zone                           (A)

     (B) Special Export Zone                             (B)

     (C) Special Environmental Zone                      (C)

     (D) Special Economic Zone                           (D)

                                               3                         [P.T.O.
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3.   Which one of the following is not a            3.
     level of strategies applicable to
     multiunit business ?                                (A)

     (A) Corporate strategy                              (B)

     (B) SBU level strategy

     (C) Functional level strategy                       (C)

     (D) Divisional level strategy                       (D)

4.   Which one of the following is not a            4.
     powerful environmental force the
     business is confronted with ?

     (A) Consumer movement
                                                         (A)
     (B) Environmentalism
                                                         (B)
     (C) Changing             competitive
                                                         (C)
          environment

     (D) Increasing population                           (D)

5.   MSMEs contribute about .................       5.

     of India’s GDP.

     (A) 8%
                                                         (A) 8%
     (B) 19%
                                                         (B) 19%
     (C) 35%                                             (C) 35%
     (D) 40%                                             (D) 40%

                                                4
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6.   As per which accounting convention           6.

     ‘contingent liability’ is shown by way

     of a footnote below the Balance

     Sheet ?
                                                       (A)
     (A) Convention of conservatism

                                                       (B)
     (B) Convention of full disclosure

                                                       (C)
     (C) Convention of materiality

                                                       (D)
     (D) Convention of consistency

7.   A company paid ` 50,000 for a                7.         ` 50,000

     purchase of copyright for five years.

     The process of writing off this

     cost over a period of five years is

     called ................ .
                                                       (A)
     (A) Depreciation

                                                       (B)
     (B) Amortization

                                                       (C)
     (C) Deferred Revenue Expenditure

     (D) Depletion                                     (D)

                                              5                             [P.T.O.
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8.   Long term solvency is indicated                  8.


     by ................... .


     (A) Current Ratio                                     (A)


     (B) Debt/Equity Ratio                                 (B)


     (C) Net Profit Ratio                                  (C)


     (D) Turnover Ratio                                    (D)


9.   Which of the following is not an
                                                      9.

     assumption                 of   Break-Even

     Analysis ?


     (A) Total fixed cost does not change


     (B) Total variable cost does not                      (A)


           change
                                                           (B)

     (C) General price level does not
                                                           (C)
           change


     (D) Product mix does not change                       (D)


                                                  6
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10. The difference between standard             10.

    cost of standard hours and standard

    cost of actual hours is called

    as .................. .
                                                      (A)
    (A) Labour rate variance
                                                      (B)
    (B) Labour cost variance

                                                      (C)
    (C) Labour efficiency variance

                                                      (D)
    (D) Labour mix variance


11. In normal conditions, the demand            11.

    curve for a commodity :


    (A) slopes upwards from left to

                                                      (A)
           right


    (B) slopes downwards from left to                 (B)

           right
                                                      (C)
    (C) is horizontal, parallel to X-axis


    (D) is vertical, parallel to Y-axis               (D)


                                            7                         [P.T.O.
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12. If the demand for a product responds       12.


    more than proportionate to the


    change in its price, it is a :


    (A) Perfectly inelastic demand                   (A)


    (B) Perfectly elastic demand                     (B)


    (C) Unitary elastic demand                       (C)


    (D) Highly elastic demand                        (D)


13. Which of the following is not              13.


    a    feature    of    monopolistic


    competition ?
                                                     (A)
    (A) Homogenous product

                                                     (B)
    (B) Large number of sellers


    (C) Selling costs                                (C)


    (D) Product differentiation                      (D)


                                           8
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14. The law of variable proportions of           14.

    production is applicable in :

    (A) Long period                                    (A)

    (B) Market period                                  (B)

    (C) Short period                                   (C)

    (D) Very long period                               (D)

15. With increasing level of output the          15.

    Average Variable Cost (AVC) of a                          (AVC)
    firm :
                                                       (A)
    (A) Initially falls, then continues to

        rise
                                                       (B)
    (B) Remain unchanged
                                                       (C)
    (C) Goes on continuously falling

    (D) Goes on continuously rising                    (D)

16. Why is random sampling preferred ?           16.

    (A) It is easy to draw                             (A)

    (B) The results will be statistically              (B)

        valid

    (C) It is a popular method                         (C)

    (D) It is free from errors                         (D)

                                             9                         [P.T.O.
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17. Which of the following is not an          17.

    ‘absolute measure of dispersion’ ?

    (A) Range                                       (A)

    (B) Standard deviation                          (B)

    (C) Mean deviation                              (C)

    (D) Coefficient of variation                    (D)

18. The empirical formula used to know        18.

    mode is ................. .

    (A) Mean – 2 Median                             (A)     – 2

    (B) 2 Mean – 3 Median                           (B) 2    – 3

    (C) 3 Median – 2 Mean                           (C) 3         – 2

    (D) 3 Median + 2 Mean                           (D) 3         + 2

19. Which of the following is a               19.                            (Parameter)

    parameter ?

    (A) Sample mean                                 (A)

    (B) Population mean                             (B)

    (C) Size of sample                              (C)

    (D) Size of population                          (D)

                                         10
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20. Suppose an unbiased coin is tossed.              20.

     Event A : Getting head.
                                                                 A :
     Event B : Getting tail.
                                                                 B :
     Which of the following statements

     is true ?

     (A) The events A and B are
                                                           (A)         (A)       (B)
          independent

     (B) The events A and B are

          mutually exclusive                               (B)         (A)      (B)

     (C) The events A and B are

          independent and mutually
                                                           (C)         (A)       (B)
          exclusive

     (D) The events A and B are neither
                                                           (D)         (A)            (B)
          independent nor mutually

          exclusive

21. Tactic is a component of .............. .        21.

     (A) Planning
                                                           (A)

     (B) Organising
                                                           (B)

     (C) Directing                                         (C)

     (D) Co-ordinating                                     (D)

                                                11                                          [P.T.O.
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22. The concept of committee comes               22.

    within the scope of ............... .

    (A) Directing                                      (A)

    (B) Organising                                     (B)

    (C) Controlling                                    (C)

    (D) Planning                                       (D)

23. Which one of the following is not            23.

    Fayol’s principle of management ?

    (A) Unity of Command                               (A)

    (B) Unity of Direction                             (B)

    (C) Authority and Responsibility                   (C)

    (D) Management by Exception                        (D)

24. Find the odd one out :                       24.

    The components of planning are :

    (A) Objective                                      (A)

    (B) Procedure                                      (B)

    (C) Decentralisation of authority                  (C)

    (D) Budget                                         (D)

                                            12
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25. Motivation is a part of ................ .        25.


     (A) Communication                                      (A)


     (B) Direction                                          (B)


     (C) Organization                                       (C)


     (D) Plan                                               (D)


26. Which of the following statements                 26.

     is true ?
                                                            (A)

     (A) Marketing and selling are inter-

          changeable terms
                                                            (B)
     (B) Marketing and selling are not

          inter-changeable terms

                                                            (C)
     (C) Selling is a broader term which

          includes marketing


     (D) Advertising includes selling and                   (D)

          marketing


                                                 13                         [P.T.O.
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27. Product-oriented concept believes                     27.

    that ............... is the key to success.

    (A) Offer of better and modified
                                                                (A)
          products

    (B) Fulfilling              expectations    of

          customers                                             (B)

    (C) Focussing on drawbacks of
                                                                (C)
          competing products

    (D) Manufacturing products on
                                                                (D)
          large scale

28. Product Life Cycle (PLC) includes                     28.

    mainly        four          stages   such   as

    Introduction, Growth, Maturity

    and ................... .
                                                                (A)
    (A) Prosperity

                                                                (B)
    (B) Decline

    (C) Depression                                              (C)

    (D) Inflation                                               (D)

                                                     14
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29. In the buying decision process,                  29.


    .................... is the first step.


    (A) Information search                                 (A)


    (B) Purchase decision                                  (B)


    (C) Evaluation of alternatives                         (C)


    (D) Need recognition                                   (D)


30. Relationship marketing refers to                 30.


    maintaining relations with ..............


    to achieve the marketing purpose.


    (A) Employees                                          (A)


    (B) Dealers                                            (B)


    (C) Customers                                          (C)


    (D) Suppliers                                          (D)


                                                15                         [P.T.O.
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31. The initial cash outlay of a project        31.

    is ` 2,00,000 and it can generate                 `2
    cash inflow of ` 80,000, ` 60,000,
                                                             ` 80,000, ` 60,000, ` 1,00,000
    ` 1,00,000 and ` 40,000 in the year
                                                        ` 40,000      2013, 2014, 2015
    2013,      2014,   2015   and   2016
                                                      2016                     10%
    respectively. Assume 10% rate of

    discount. Calculate the net present
                                                                         1
    value of cash inflow. Time value of

    money of ` 1 @ 10% discount                       10%

    factor :
                                                                          DF

            Year        DF Value
                                                              1              .909
               1          .909
                                                              2              .826
               2          .826
                                                              3              .751
               3          .751
                                                              4              .683
               4          .683
                                                      (A) 1.1240
    (A) 1.1240

                                                      (B) 1.1235
    (B) 1.1235

    (C) 1.335                                         (C) 1.335


    (D) 1.634                                         (D) 1.634

                                           16
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32. Which of the following items is not                32.

     considered while determining the

     working capital ?
                                                             (A)
     (A) Inventory
                                                             (B)
     (B) Trade Receivables
                                                             (C)
     (C) Cash at bank
                                                             (D)
     (D) Software

33. Which of the following is Dividend                 33.

     Policy Model ?

     (A) Gordon’s model                                      (A)

     (B) Schumpeter model                                    (B)

     (C) Ricardian model                                     (C)

     (D) Miles-Ezzell’s model                                (D)

34. The concept of cost of capital can also            34.

     be explained in terms of ............... .

     (A) Direct cost                                         (A)

     (B) Fixed cost                                          (B)

     (C) Total cost                                          (C)

     (D) Opportunity cost                                    (D)

                                                  17                         [P.T.O.
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35. Which is not the example of current               35.

     liabilities ?

     (A) Advance from customers                             (A)

     (B) Contingent liabilities                             (B)

     (C) Bank overdraft                                     (C)

     (D) Provident fund dues                                (D)

36. Which one of the following is not a               36.

     labour legislation ?
                                                            (A)
     (A) Factories Act
                                                            (B)
     (B) Competition Act
                                                            (C)
     (C) Payment of Wages Act

                                                            (D)
     (D) Industrial Disputes Act

37. Theory ‘Y’ was developed by ............ .        37.


     (A) Fiedler                                            (A)

     (B) Vroom                                              (B)

     (C) McGregor                                           (C)

     (D) Herzberg                                           (D)

                                                 18
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38. Induction is a function of .............. in        38.

     Human Resource Management.

     (A) Performance Appraisal                                (A)

     (B) Selection                                            (B)

     (C) Placement                                            (C)

     (D) Recruitment                                          (D)

39. Which of the following does not                     39.                 (wages)

     directly affect wage and salary                          (salary)

     structures ?

     (A) Ability to pay                                       (A)

     (B) Labour supply and demand                             (B)

     (C) Union demands                                        (C)

     (D) Regional backwardness                                (D)

40. Employee welfare does not exactly                   40.

     depend on :

     (A) Conditions             of      Work
                                                              (A)
           Environment
                                                              (B)
     (B) Employees’ Health Services

     (C) Employees’ Education                                 (C)

     (D) Organisational Culture                               (D)

                                                   19                                 [P.T.O.
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41. The lending rates of commercial           41.


    banks are usually :


    (A) Not affected by Bank rate                   (A)


    (B) Not related to Bank rate                    (B)


    (C) Lower than Bank rate                        (C)


    (D) Higher than Bank rate                       (D)


42. Banks which operate through single        42.

    office and generally confined to


    limited area of town or city are


    called :

                                                    (A)
    (A) Central Banks

                                                    (B)
    (B) Urban Banks

                                                    (C)
    (C) Unit Banks


    (D) Metro Banks                                 (D)

                                         20
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43. When money is lent or borrowed for         43.

    one day or on overnight basis it is

    known as :
                                                     (A)
    (A) Term Money
                                                     (B)
    (B) Call Money
                                                     (C)
    (C) Notice Money
                                                     (D)
    (D) Near Money

44. Who was the first Indian Governor          44.

    of RBI ?

    (A) C. D. Deshmukh                               (A)

    (B) Bengal Rama Rau                              (B)

    (C) R. K. Shanmukham Chetty                      (C)

    (D) K. G. Ambegaonkar                            (D)

45. Along with Central and State               45.

    Governments the paid up capital of                     (RRBs)

    RRB is shared by :

    (A) RBI                                          (A)

    (B) Sponsoring Bank                              (B)

    (C) NABARD                                       (C)

    (D) SBI                                          (D)

                                          21                              [P.T.O.
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46. GATT which was replaced by WTO             46.
                                                     (WTO)
    was :

    (A) An organisation
                                                     (A)
    (B) An agreement
                                                     (B)
    (C) A policy                                     (C)

    (D) A conference                                 (D)

47. Which of the following is not the          47.

    item of current account of balance                            (BOP)

    of payment ?

    (A) Import of services                           (A)

    (B) Interest payments                            (B)

    (C) Export of goods                              (C)

    (D) External borrowings                          (D)

48. India’s share in global merchandise        48.         2015

    trade in 2015 was :

    (A) 2.00%                                        (A) 2.00%

    (B) 2.50%                                        (B) 2.50%

    (C) 3.00%                                        (C) 3.00%

    (D) 1.60%                                        (D) 1.60%

                                          22
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49. The Asian Development Bank (ADB)           49.

    attempts to promote economic


    co-operation and growth of the
                                                            (ADB)

    countries in :
                                                     (A)
    (A) Asia and Far East
                                                     (B)
    (B) South East Asia

                                                     (C)
    (C) South and West Asia

                                                     (D)
    (D) South and Central Asia

                                               50.
50. The direction of Indian exports has


    shifted in recent period towards :


    (A) Asia
                                                     (A)

    (B) North America
                                                     (B)

    (C) Europe
                                                     (C)


    (D) Africa                                       (D)

                                          23                         [P.T.O.
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ROUGH WORK




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Source: Savitribai Phule Pune University. Question paper published by Savitribai Phule Pune University.