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MH SET 2019: 23 June, Paper II, Commerce

  • Date: 23 June 2019
  • Paper code: JUN-50219
  • Series: A
  • Language: Bilingual
  • 40 pages
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Test Booklet Code & Serial No.
                                                                                                                     A
                                                                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.
JUN - 50219                                                                                          (To be filled by the Candidate)
Time Allowed : 2 Hours]                                                                                [Maximum Marks : 200
Number of Pages in this Booklet : 40                                                    Number of Questions in this Booklet : 100
                      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 100 objective type questions. Each question
           will carry two marks. All questions of Paper II will be compulsory.     2.
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
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           (C) and (D). You have to darken the circle as indicated below on        4.                      (A), (B), (C)    (D)
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           Example : where (C) is the correct response.

                              A        B                 D                                           (C)
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           end of the examination compulsorily and must not carry it with          9.
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12.        There is no negative marking for incorrect answers.                     12.
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JUN - 50219/II—A
                                          Commerce
                                             Paper II


                                                               II
Time Allowed : 120 Minutes]                          [Maximum Marks : 200
Note : This Paper contains Hundred (100) multiple choice questions. Each question
       carrying Two (2) marks. Attempt All questions.
                              (100)                                           (2)



1.   ..................... is a mechanism to reduce       1.

     price risk inherent in open position.

     (A) Swap
                                                                (A)
     (B) Hedging
                                                                (B)
     (C) Customised contract
                                                                (C)
     (D) Squaring off
                                                                (D)
2.   The theory of mercantilism is based
                                                          2.
     on :

     (A) Gold
                                                                (A)

     (B) Dollar
                                                                (B)

     (C) Use of money
                                                                (C)

     (D) Exchange of goods for goods                            (D)

                                                      3                         [P.T.O.
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3.   Which one of the following is not a               3.

     demerit of the MNCs ?

     (A) MNCs may destroy competition
                                                            (A)
          and acquire monopoly powers.

     (B) MNCs        retard      growth      of
                                                            (B)
          employment in the home

          country.

                                                            (C)
     (C) MNCs        provide      means      of

          integrating national economies.

     (D) Through        transfer      pricing               (D)

          MNCs avoid taxes in the home

          country.

4.   Balance of trade balances the
                                                       4.
     exports and imports of ....................

     trade of a country.
                                                            (A)
     (A) Invisible

                                                            (B)
     (B) Merchandise

     (C) Industrial                                         (C)


     (D) Agricultural                                       (D)

                                                   4
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5.   Which one of the following is not a       5.
     form of counter trade ?

     (A) Buy back
                                                    (A)
     (B) Compensation deal
                                                    (B)
     (C) Counter purchase
                                                    (C)
     (D) Purchase on credit
                                                    (D)
6.   Usually balance of payments
                                               6.
     accounts the transactions of a

     country for :

     (A) Five years                                 (A)

     (B) Two years                                  (B)

     (C) One year                                   (C)

     (D) Ten years
                                                    (D)
7.   The key factor for attracting FDI
                                               7.
     is :

     (A) Interest rates existing for a
                                                    (A)
            country
                                                    (B)
     (B) Entry/Exit policies

     (C) Purchasing power                           (C)

     (D) All of the above                           (D)

                                           5                        [P.T.O.
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8.   South        Asian         Association   for       8.
     Regional Co-operation (SAARC)
     was established on December, 1985
     in ......................... city.
                                                              (A)
     (A) Islamabad
                                                              (B)
     (B) Kathmandu
                                                              (C)
     (C) Dhaka
                                                              (D)
     (D) New Delhi
                                                        9.
9.   Which of the following is not the type
     of tariff reduction mechanism under
     agreement on agriculture (AOA) ?
                                                              (A)
     (A) Amber box subsidy
                                                              (B)
     (B) Blue box subsidy
                                                              (C)
     (C) Green box subsidy

     (D) Purple box subsidy                                   (D)

10. Which one of the following is not                   10.

     economic factor to cause disequili-
     brium in the balance of payments ?

     (A) Development disequilibrium                           (A)

     (B) Social disequilibrium                                (B)

     (C) Structural disequilibrium                            (C)

     (D) Cyclical disequilibrium                              (D)
                                                    6
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11. Human Resource Accounting is an                       11.
    expected         solution         over      the
    limitations of ........................ .
                                                                (A)
    (A) Assets and liability
                                                                (B)
    (B) Income and expenses
                                                                (C)
    (C) Realisation concept
                                                                (D)
    (D) Money measurement concept
                                                          12.
12. Which of the following industries
    does not use the process costing ?

    (A) Oil refineries                                          (A)

    (B) Distilleries                                            (B)

    (C) Sugar                                                   (C)

    (D) Aircraft manufacturing                                  (D)

13. When prices show a rising trend,                      13.
    which one of the following methods
    of inventory valuation will result in
    lower income and lower valuation of
    inventory ?
                                                                (A) FIFO
    (A) FIFO

    (B) LIFO                                                    (B) LIFO

    (C) Simple average method                                   (C)

    (D) Weighted average method                                 (D)

                                                      7                              [P.T.O.
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14. ABC Ltd. has profit after tax               14.                            ` 80,000
    ` 80,000, Depreciation ` 15,000 and                            ` 15,000
    decrease in debtors ` 25,000. What                      ` 25,000
    is the cash flow from operating
    activities ?
                                                      (A) ` 55,000
    (A) ` 55,000
                                                      (B) ` 40,000
    (B) ` 40,000
                                                      (C) ` 1,20,000
    (C) ` 1,20,000
                                                      (D) ` 65,000
    (D) ` 65,000
                                                15.
15. At the time of consolidation issue
    of bonus shares by subsidiary
    company out of capital profit
    will ........................ .                   (A)

    (A) Decrease cost of control                      (B)

    (B) Increase cost of control                      (C)

    (C) Increase holding ratio                        (D)

    (D) Have no effect on cost of control
                                                16.
16. The sweat shares are allotted
    to ........................ .

    (A) Investors                                     (A)

    (B) Employees                                     (B)

    (C) Vendors                                       (C)

    (D) Promoters                                     (D)

                                            8
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17. Cost auditor is appointed by :             17.

    (A) The shareholders in the general
          meeting                                    (A)

    (B) The Central Government                       (B)

    (C) The Registrar of Companies                   (C)

    (D) The Board of Directors                       (D)

18. Employee benefits to employees in          18.
    financial statements are recognised
    as per ........................ .

    (A) Indian AS-1                                  (A) Indian AS-1

    (B) Indian AS-9                                  (B) Indian AS-9

    (C) Indian AS-6                                  (C) Indian AS-6

    (D) Indian AS-19                                 (D) Indian AS-19

19. X and Y share profits and losses in        19.
    the ratio of 2 : 1. They take Z as               2: 1
    a partner and the new profit sharing
    ratio becomes 3 : 2 : 1. Z brings                3 : 2 : 1             ` 4,500
    ` 4,500 as premium for goodwill.
    What will be the value of firm’s
    goodwill ?

    (A) ` 4,500                                      (A) ` 4,500

    (B) ` 18,000                                     (B) ` 18,000

    (C) ` 27,000                                     (C) ` 27,000

    (D) ` 24,000                                     (D) ` 24,000

                                           9                                  [P.T.O.
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20. What is said as essence of                          20.

     Auditing ?
                                                              (A)
     (A) Vouching
                                                              (B)
     (B) Verification
                                                              (C)
     (C) Valuation
                                                              (D)
     (D) Internal check
                                                        21.
21. Which of the following is not the

     basic economic problem ?
                                                              (A)
     (A) What to produce ?
                                                              (B)
     (B) How to produce ?
                                                              (C)
     (C) What to consume ?
                                                              (D)
     (D) For whom to produce ?
                                                        22.
22. The ..................... effect of a change

     in price is negative for superior

     goods.

                                                              (A)
     (A) Price

     (B) Income                                               (B)


     (C) Substitution                                         (C)

     (D) Inflation                                            (D)

                                                   10
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23. If two goods are perfect complements               23.
    to each others, then indifference
    curves are ......................... .

    (A) Right angled
                                                             (A)
    (B) Left angled
                                                             (B)
    (C) Convex to origin

    (D) Downward sloping                                     (C)

24. X : Long run average cost curve is                       (D)
          flat U-shaped.
                                                       24.                  (LRAC)
    Y : It is called an envelope curve.
                                                                   U
    (A) Only X is correct

    (B) Only Y is correct
                                                             (A)
    (C) Both X and Y are correct

    (D) Both X and Y are incorrect                           (B)

25. Which of the following is not a fixed                    (C)
    cost ?
                                                             (D)
    (A) Payment            of     interest   on
          borrowed capital                             25.

    (B) Charges for fuel and electricity                     (A)

    (C) Depreciation              charges    on              (B)
          equipments and buildings
                                                             (C)
    (D) Contractual rent for equipment
          or building                                        (D)

                                                  11                         [P.T.O.
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26. In which of the following market             26.
    structure is the demand curve of the
    market represented by the demand
    curve of the firm ?
                                                       (A)
    (A) Monopolistic competition
                                                       (B)
    (B) Perfect competition
                                                       (C)
    (C) Monopoly
                                                       (D)
    (D) Oligopoly
                                                 27.
27. X : The extra expenditure incurred
         by a firm on competitive
         advertisement is selling cost.

    Y : There are several wastes under
         monopolistic competition.

    (A) Only X is correct                              (A)

    (B) Only Y is correct                              (B)
    (C) Both X and Y are correct                       (C)
    (D) Both X and Y are incorrect
                                                       (D)
28. This is not a feature of monopolistic
                                                 28.
    competition :
                                                       (A)
    (A) Product differentiation
                                                       (B)
    (B) Free entry and exit
                                                       (C)
    (C) Selling cost

    (D) Interdependence                                (D)

                                            12
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29. Match the columns :                              29.

                Group-A

    (w) Monopolistic competition                           (w)

    (x) Price rigidity                                     (x)

    (y) Dumping                                            (y)

    (z) Collusion                                          (z)

                Group-B

    (i)   Sale of goods at varying prices                  (i)
          in foreign and domestic market.

    (ii) Edward Chamberlin.                                (ii)

    (iii) Firms working together in price                  (iii)
          determination.

    (iv) Paul Sweezy.                                      (iv)

    Codes :

    (A) (w)-(ii) (x)-(iii) (y)-(i) (z)-(iv)                (A) (w)-(ii) (x)-(iii) (y)-(i) (z)-(iv)

    (B) (w)-(iv) (x)-(ii)   (y)-(i) (z)-(iii)              (B) (w)-(iv) (x)-(ii)   (y)-(i) (z)-(iii)

    (C) (w)-(ii) (x)-(iv) (y)-(i) (z)-(iii)                (C) (w)-(ii) (x)-(iv) (y)-(i) (z)-(iii)

    (D) (w)-(iv) (x)-(i) (y)-(iii) (z)-(ii)                (D) (w)-(iv) (x)-(i) (y)-(iii) (z)-(ii)

30. Who among the following has not                  30.
    contributed to the theory of games ?

    (A) J. Von Neumann                                     (A)

    (B) Oskar Morgenstern                                  (B)

    (C) John Nash                                          (C)

    (D) Robert Samuelson                                   (D)

                                                13                                           [P.T.O.
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31. The measure of business risk is :         31.

    (A) Operating leverage                          (A)

    (B) Financial leverage                          (B)

    (C) Combined leverage                           (C)

    (D) Working capital leverage
                                                    (D)
32. DCF technique of Capital Budgeting
                                              32.
    does not include the following :

    (A) NPV (Net Present Value)
                                                    (A)
    (B) P.I. (Profitability Index)
                                                    (B)
    (C) IRR (Internal Rate of Return)
                                                    (C)
    (D) ARR (Average Rate of Return)
                                                    (D)
33. A firm has a cash dividend of ` 42
                                              33.
    per share and an average growth
                                                    ` 42
    rate of 5% per annum in cash
    dividend. The required rate of                          5%

    return is 12% per annum. Find the                 12%

    present value of the share :

    (A) ` 600                                       (A) ` 600

    (B) ` 294                                       (B) ` 294

    (C) ` 500                                       (C) ` 500

    (D) ` 650                                       (D) ` 650

                                         14
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34. The nominal rate of interest is equal        34.

    to :

    (A) Real rate + Risk premium –                     (A)   +              –

           Inflation
                                                       (B)   +              +
    (B) Real rate + Risk premium +

           Inflation
                                                       (C)   –              +
    (C) Real rate – Risk Premium +

           Inflation
                                                       (D)
    (D) Real rate
                                                 35.
35. SDRs are :

    (A) International reserve assets                   (A)

    (B) US currency                                    (B)

    (C) Crawling peg                                   (C)

                                                       (D)
    (D) ADR
                                                 36.
36. Domestic       currency   tends    to

    depreciate owing to :
                                                       (A)
    (A) Lowering of inflation rate
                                                       (B)
    (B) Constant inflation rate
                                                       (C)
    (C) High inflation rate

    (D) No inflation rate                              (D)

                                            15                         [P.T.O.
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37. Money market hedge involves :             37.

    (A) Going for a forward contract
                                                    (A)
    (B) Going for a future contract
                                                    (B)
    (C) Going for a backward contract
                                                    (C)
    (D) A position to cover a future
        payables receivable position                (D)

38. Multilateral Investment Guarantee
                                              38.
    Agency (MIGA) covers :

    (A) Political risk
                                                    (A)
    (B) Commercial risk
                                                    (B)
    (C) Management risk
                                                    (C)
    (D) Exchange risk
                                                    (D)
39. At operating Break-even Point
                                              39.
    which of the following is true ?

    (A) Sales revenue just covers the
                                                    (A)
        fixed cost

    (B) Sales revenue is just equal to              (B)
        revenue variable cost

    (C) Fixed cost is same as that of               (C)
        variable cost

    (D) EBIT is zero                                (D)

                                         16
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40. As per Net Income Approach theory                   40.
    a firm can increase its value and
    reduce the overall cost of capital by
    increasing the proportion of ...............
    in its capital structure.

    (A) Debt                                                  (A)

    (B) Equity                                                (B)

    (C) Preference shares                                     (C)

    (D) Retained earnings                                     (D)

41. If each observation in a group is                   41.                            5
    increased by 5, then the arithmetic
    mean will ....................... .
                                                              (A) 5
    (A) Increase by 5
                                                              (B)
    (B) Not change
                                                              (C) 5
    (C) Decrease by 5
                                                              (D)
    (D) Decrease or increase depending
          upon the observations
                                                        42.         X = 100,   x = 10, Y = 200,
42. If X = 100,           x = 10, Y = 200,                     y = 15,
     y = 15, then :                                           (A)              (X) =             (Y)
    (A) C.V. (X) = C.V. (Y)
                                                              (B)              (X) >             (Y)
    (B) C.V. (X) > C.V. (Y)
                                                              (C)              (X) <             (Y)
    (C) C.V. (X) < C.V. (Y)
                                                              (D)                (X) = 1.5
    (D) C.V. (X) = 1.5 C.V. (Y)                                          (Y)

                                                   17                                        [P.T.O.
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43. If A and B are mutually exclusive                     43.         A       B
    and exhaustive events of                such
    that P(A) = 2P(B), then P(A) = .........                    P(A) = 2P(B)            P(A) = .........

    (A) 0                                                       (A) 0

    (B) 1/3                                                     (B) 1/3

    (C) 2/3                                                     (C) 2/3

    (D) 1                                                       (D) 1

44. A company can complete the job in                     44.
    time with probability 0.8. Suppose                                            0.8
    5 jobs are assigned then the                                          5
    probability that all the jobs will be
    completed in time is ....................... .

    (A) 5 × 0.8                                                 (A) 5 × 0.8

    (B) 0.8                                                     (B) 0.8

    (C) 1                                                       (C) 1

    (D) (0.8)5                                                  (D) (0.8)5

45. In systematic sampling the samples                    45.
    drawn ........................ .

    (A) Are not overlapping                                     (A)

    (B) May be overlapping                                      (B)

    (C) Are non-random in nature                                (C)

    (D) Are not proper representative                           (D)
                                                     18
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46. The critical region in testing of                  46.
    hypothesis is a region of .................
                                                             (A)          H0
     (A) Rejection for H0
     (B) Rejection for H1                                    (B)          H1
     (C) Acceptance for H0
     (D) Acceptance for H1                                   (C)          H0

47. We use Mann-Whitney U test for
    testing equality of means of two                         (D)          H1
    populations if .................... .
     (A) The samples are from normal                   47.
         populations with unknown                                              U
         variances.
                                                             (A)
     (B) The samples are from non-
         normal populations.
                                                             (B)
     (C) The samples are from normal
                                                             (C)
         populations with known
         variances.
                                                             (D)
     (D) The samples are unequal in
         size.                                         48.

48. If the two regression lines are                                      x + 2y = 5

                 x + 2y = 5 and                                         2x + 3y = 8
                2x + 3y = 8                                              x         y
     then the means of x and y are :
     (A) –3, 4                                               (A) –3, 4

     (B) 2, 4                                                (B) 2, 4

     (C) 1, 2                                                (C) 1, 2

     (D) 2, 1                                                (D) 2, 1

                                                  19                                     [P.T.O.
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49. If X is a normal variate with                 49.         X
    mean 20 and variance 64, then                                     20               64
    P(X > 20) = ........................ .              P(X > 20) = ........................

    (A) 0                                               (A) 0

    (B) 20/64                                           (B) 20/64

    (C) 0.5                                             (C) 0.5

    (D) 1                                               (D) 1

50. Arrange the following steps in                50.
    research in appropriate order :

    (a) Hypothesis testing                              (a)

    (b) Drawing a sample                                (b)

    (c) Determining the size of sample                  (c)

    (d) Conduct the survey                              (d)

    (e) Decide the sampling method                      (e)

    (A) a, b, c, d, e                                   (A) a, b, c, d, e

    (B) b, c, a, d, e                                   (B) b, c, a, d, e

    (C) e, c, b, d, a                                   (C) e, c, b, d, a

    (D) d, e, a, b, c                                   (D) d, e, a, b, c

51. Another term used for 360 degree              51. 360
    appraisal and feedback is :

    (A) Multirater                                      (A)

    (B) Complete appraisal                              (B)

    (C) Internal and external appraisal                 (C)

    (D) Periodic assessment                             (D)

                                             20
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52. ........................ is not the part of on-        52.
      the-job training method.

      (A) Apprenticeship                                         (A)

      (B) Simulation                                             (B)
      (C) Coaching                                               (C)
      (D) Intership                                              (D)
53. .....................    suggests        that
                                                           53.
      managerial knowledge may be
      transferred from one country to
      another and from another within the
      same country.
                                                                 (A)
      (A) Universality of Management
                                                                 (B)
      (B) Scientific Management
                                                                 (C)
      (C) Professional Management
                                                                 (D)
      (D) Administrative Management
                                                           54.
54. ..................... is used to evolve
      behavioural description of a job.

      (A) Critical Incident Technique
                                                                 (A)
      (B) Position Analysis Questionnaire/
           Technique
                                                                 (B)
      (C) Task       inventory        Analysis
           Technique                                             (C)

      (D) Method Analysis                                        (D)

                                                      21                         [P.T.O.
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55. ....................... is concerned with              55.
      physical location, management of
      buildings and equipments.

      (A) Ad hoc Planning                                        (A)
      (B) Formal Planning                                        (B)
      (C) Standing Planning                                      (C)
      (D) Physical Planning                                      (D)
56. ....................... is a technique for
                                                           56.
      planning and controlling complex
      projects and for scheduling the
      resources required for such projects.

      (A) Complexities Analysis
                                                                 (A)
      (B) Network Analysis
                                                                 (B)
      (C) Financial Analysis
                                                                 (C)
      (D) Internal Analysis
                                                                 (D)
57. ..................... signifies all out efforts
                                                           57.
      for increase in production, creation
      of spirit of mutual trust and develop
      scientific attitude towards problem
      solving.

      (A) Time study                                             (A)

      (B) Mental Revolution                                      (B)

      (C) Motion study                                           (C)

      (D) Works study                                            (D)
                                                      22
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58. The process resolving the differences               58.
     between union and management in
     the absence of any third party is
     widely designated as .................... .

     (A) Adjudication                                         (A)

     (B) Arbitration                                          (B)

     (C) Collective bargaining                                (C)

     (D) Conciliation                                         (D)

59. Which one of the following is not                   59.
     the factor that affects the span of
     control ?                                                (A)
     (A) Similarities of functions                            (B)
     (B) Geographical closeness of
           employees                                          (C)
     (C) Capacity of subordinates                             (D)
     (D) Delegation                                     60.                   (off the
60. ......................... is not off the job              job)
     training method.                                         (A)
     (A) Vestibule                                            (B)
     (B) Simulation                                           (C)
     (C) Business games                                       (D)
     (D) Special assignments

                                                   23                          [P.T.O.
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61. ....................... it is a risk arising out         61.
      of human errors, technical faults,
      infrastructure breakdown and faulty
      systems ?

      (A) Exchange risk                                            (A)
      (B) Settlement risk                                          (B)
      (C) Gap risk
                                                                   (C)
      (D) Operational risk
                                                                   (D)
62. In case of ....................... debentures,
                                                             62.
      the investors are given the option
      to convert their investment in the
      form of equity shares of the
      company.
                                                                   (A)
      (A) Fully convertible
                                                                   (B)
      (B) Partly convertible
                                                                   (C)
      (C) Non-convertible

      (D) Optionally convertible                                   (D)

63. ......................... are the persons legally        63.

      permitted to deal in or handle
      transactions related to foreign
      exchange as per FEMA 1999.

      (A) Underwriters                                             (A)

      (B) Authorised persons                                       (B)

      (C) Taraniwala                                               (C)

      (D) Joggers                                                  (D)
                                                        24
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64. ........................ is a communication            64.
    system which provides transmission
    of financial messages, certifying the
    authenticity, across the globe
    between members.
                                                                 (A) RTGS
      (A) RTGS
                                                                 (B) NEFT
      (B) NEFT
      (C) SWIFT                                                  (C) SWIFT
      (D) FINFAST                                                (D) FINFAST
65. Bank should classify an account as
                                                           65.
    NPA only if the interest charged
    during any quarter is not serviced
    fully within ..................... from the end
    of quarter.
      (A) 90 days
      (B) 180 days
                                                                 (A) 90
      (C) 360 days
      (D) 450 days                                               (B) 180

66. ......................... is an indirect                     (C) 360
    instrument of credit control used by
    the RBI to meet day to day liquidity                         (D) 450
    mismatches in the system and check
                                                           66.
    volatility in the short-term money
    market.
      (A) Credit monitoring arrangement
          (CMA)
      (B) Liquidity adjustment facility
                                                                 (A)
          (LAF)
      (C) Credit authorization scheme                            (B)
          (CAS)
                                                                 (C)
      (D) Market stabilization scheme
          (MSS)                                                  (D)

                                                      25                                 [P.T.O.
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67. The balance of a joint account in the            67.
     name of X, Y and Z should be paid
     on the death of X :

     (A) To the legal representative of X                  (A)

     (B) To Y and Z                                        (B)

                                                           (C)
     (C) To Y or Z
                                                           (D)
     (D) To the legal representative of X,
          Y and Z
                                                     68.
68. The main purpose of insurance is :

     (A) Compensate the loss
                                                           (A)
     (B) Provide security
                                                           (B)
     (C) Share the losses of few people
                                                           (C)
          among many

     (D) Indemnification
                                                           (D)
69. Secondary financing of bills or credit           69.
     portfolio already financed by banks
     or institutions as a support to
     primary financers is termed as .........

     (A) Refinance                                         (A)

     (B) Supplementary finance                             (B)

     (C) Counter finance                                   (C)

     (D) Demand based finance                              (D)

                                                26
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70. Pre-matured payment of term loan                    70.
     will result in interest rate risk of
     ...................... type.

     (A) Basic risk
                                                              (A)
     (B) Yield curve risk
                                                              (B)
     (C) Embedded option risk
                                                              (C)
     (D) Mismatch risk
                                                              (D)
71. Functions of physical supply
     include :                                          71.

     (A) Buying, Assembling, Selling
                                                              (A)
     (B) Transportation, Storage

     (C) Standardisation,           Grading,                  (B)

            Packaging, Labelling                              (C)

     (D) Transport, Grading and Storage                       (D)
72. .......................... method of pricing
                                                        72.
     strategies assumes that sales and
     profits are independent of costs, but
     are dependent on the demand.
                                                              (A)
     (A) Break-even pricing

     (B) Market based pricing                                 (B)

     (C) Competition oriented pricing                         (C)

     (D) Affordability based pricing                          (D)

                                                   27                         [P.T.O.
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73. In ....................... pricing method of
                                                         73.
     service marketing, a marketer
     chooses to charge low price for a
     basic service to attract customers but
     every extra service above basic is
     charged additionally high.

     (A) Differential pricing                                  (A)
     (B) Discount pricing
                                                               (B)
     (C) Diversionary pricing
                                                               (C)
     (D) High price maintenance pricing
                                                               (D)
74. In the case of some market leaders,
     the companies are very highly                       74.
     respected that the channel members
     are proud to be associated with them
     is known as ....................... .
                                                               (A)
     (A) Reward power
                                                               (B)
     (B) Coercive power

     (C) Expert power                                          (C)

     (D) Referent power                                        (D)

75. ...................... describes how and             75.
     where       information         gets    into
     memory.
                                                               (A)
     (A) Memory retrieval
                                                               (B)
     (B) Memory reconstructive

     (C) Memory encoding                                       (C)

     (D) Memory decoding                                       (D)

                                                    28
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76. A customer strongly prefers a                             76.
      specific brand once will not accept
      a substitute is ........................ .

      (A) Brand recognition

      (B) Brand insistence                                          (A)

      (C) Brand preference                                          (B)

      (D) Brand loyalty                                             (C)

77. ......................... is one of the additional              (D)

      factor hindering new proudcer                           77.
      development,            which          suggest
      companies must aim their new
      products at smaller market segments
      and this can mean lower sales and
      profits for each product.

      (A) Shortage of important ideas in                            (A)
            certain areas

      (B) Social        and      governmental                       (B)
            constraints
                                                                    (C)
      (C) Fragmental markets
                                                                    (D)
      (D) Cost of development
                                                              78.
78. Rising sales at increasing rate is
      witnessed in ..................... .

      (A) Maturity stage                                            (A)
      (B) Growth stage                                              (B)
      (C) Introduction stage                                        (C)
      (D) Decline stage                                             (D)

                                                         29                         [P.T.O.
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79. ........................ is a form of licencing        79.
      where the parent company grants
      another independent company the
      right to do business in a prescribed
      manner.
                                                                 (A)
      (A) Franchising
                                                                 (B)
      (B) Contract manufacturing
                                                                 (C)
      (C) Strategic alliance
                                                                 (D)
      (D) Licencing

80. Customer satisfaction is no longer                     80.

      good enough to survive in today’s
      competitive market. What is needed
      is ......................... .
                                                                 (A)
      (A) Customer orientation
                                                                 (B)
      (B) Customer retention
                                                                 (C)
      (C) Building customer relationship
                                                                 (D)
      (D) Customer delight
                                                           81.
81. Section ........................ of Indian
      Contract Act, 1872 defines contract
      as an agreement enforcible by law.

      (A) 2(h)                                                   (A) 2

      (B) 2(b)                                                   (B) 2

      (C) 2(e)                                                   (C) 2

      (D) 2(d)                                                   (D) 2

                                                      30
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82. Chapter V of the Maharashtra                        82.
    Goods and Service Tax Act, 2017
    deals with ........................ .                     (A)
    (A) Input tax credit
                                                              (B)
    (B) Time and value of supply
                                                              (C)
    (C) Levy and collection of tax
                                                              (D)
    (D) Administration
                                                        83.
83. What is the time limit to get the
    information concerning with the life
    and liberty of a person as per RTI
    Act, 2005 ?
                                                              (A) 24
    (A) 24 Hours
                                                              (B) 48
    (B) 48 Hours
                                                              (C) 5
    (C) 5 Days
                                                              (D) 10
    (D) 10 Days
                                                        84.
84. As per section 24 of IPR Act, the
    term of copyright in Posthumous
    works is ............................ years.

    (A) 30                                                    (A) 30

    (B) 40                                                    (B) 40

    (C) 10                                                    (C) 10

    (D) 60                                                    (D) 60
                                                   31                            [P.T.O.
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85. What is the validity of the GST           85.
    registration certificate ?

    (A) One year                                    (A)

    (B) Ten years                                   (B)

    (C) Validity till it is cancelled               (C)

    (D) Five years                                  (D)

86. Match the following groups :              86.

                 Group-I                                               -I

    (i)   Trade Mark Act                            (i)

    (ii) Copyright Act                              (ii)

    (iii) Patent Act                                (iii)

    (iv) Design Act                                 (iv)

                Group-II                                              -II

    (a) Year 1999                                   (a)      1999

    (b) Year 1957                                   (b)      1957

    (c) Year 1970                                   (c)      1970

    (d) Year 2000                                   (d)      2000

    (A) (a-i), (b-ii), (c-iii), (d-iv)              (A) (a-i), (b-ii), (c-iii), (d-iv)

    (B) (a-iv), (b-iii), (c-ii), (d-i)              (B) (a-iv), (b-iii), (c-ii), (d-i)

    (C) (a-ii), (b-i), (c-iv), (d-iii)              (C) (a-ii), (b-i), (c-iv), (d-iii)

    (D) (a-iii), (b-iv), (c-i), (d-ii)              (D) (a-iii), (b-iv), (c-i), (d-ii)

                                         32
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87. Section ........................ of the               87.
     Competition Act, 2002 deals with
     goods.
                                                                (A) 2(i)
     (A) 2(i)
                                                                (B) 2(a)
     (B) 2(a)
                                                                (C) 2(b)
     (C) 2(b)
                                                                (D) 2(h)
     (D) 2(h)
                                                          88.
88. Which of the following is not an
     example of termination of agency by
     operation of law ?

     (A) Agreement                                              (A)

     (B) Expiry of time                                         (B)

     (C) Death of either party                                  (C)

     (D) Dissolution of company                                 (D)
89. As per the Right to Information Act,                  89.
     2005 first appeal shall be disposed
     off by the first appellate authority
     within ........................ days from the
     date of its receipt.
                                                                (A) 40
     (A) 40 Days

     (B) 30 Days                                                (B) 30

     (C) 60 Days                                                (C) 60

     (D) 50 Days                                                (D) 50

                                                     33                              [P.T.O.
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90. A limited liability partnership is to                  90.

    have at least two members as per                             (LLP)

    section ..................... of LLP Act, 2008.


    (A) 14


    (B) 13                                                       (A) 14


    (C) 16                                                       (B) 13


    (D) 6                                                        (C) 16


91. Which of the following is not an                             (D) 6


    ‘Agricultural Income’ under Income                     91.

    Tax Act, 1961 ?


    (A) Sale of replanted trees                                  (A)


    (B) Income from growing flowers                              (B)

         and creepers


    (C) Salary of partner from a firm                            (C)

         engaged in agricultural operations


    (D) Income from supply of water                              (D)

         from a tank in agricultural land

                                                      34
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92. Mr. Rajesh is Indian citizen, went          92.

    to Canada for the first time for the

    purpose of employment on 10th

    May, 2018. He came back to India

    on 19th Nov., 2018. His residential

    status for the assessment year

    2019-20 will be :

    (A) Resident                                      (A)


    (B) Non-resident                                  (B)

    (C) Resident but not ordinarily                   (C)

        resident
                                                      (D)
    (D) Foreign citizen
                                                93.
93. Which of the following allowances

    is not taxable in the hands of

    employee ?                                        (A)


    (A) City compensatory allowance                   (B)

    (B) Tiffin allowance                              (C)

    (C) Dearness allowance                            (D)

    (D) Allowance from UNO in India

                                           35                         [P.T.O.
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94. Which of the following income will               94.
       be taxable as income from house
       property ?
                                                           (A)
       (A) Letting of farm house
                                                           (B)
       (B) Letting of an office building
                                                           (C)
       (C) Letting of open plot for running
           petrol pump
                                                           (D)
       (D) Sub-letting of house
                                                     95.
95. Mr. Anil is carrying on manufacturing
       business of engineering goods. His
       data regarding machinery used for
       business is as follows :

Date      Particulars               Amount
                                                     1-4-18                              15,00,000
1-4-18    Opening W.D.V.            15,00,000
                                                     30-9-18                              3,00,000
30-9-18   Machinery sold at          3,00,000

                                                                            ` 2,50,000
          (Book value ` 2,50,000)

                                                     10-11-18                             6,00,000
10-11-18 New Machinery purchased     6,00,000

       Depreciation u/s 32 of Income Tax                              1961               32

       Act, 1961 will be :

       (A) ` 2,85,000                                      (A) ` 2,85,000

       (B) ` 2,25,000                                      (B) ` 2,25,000

       (C) ` 2,33,500                                      (C) ` 2,33,500

       (D) ` 4,27,000                                      (D) ` 4,27,000

                                                36
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96. Which of the following is not an               96.                     43-B

    ‘unpaid statutory liability’ at the end

    of previous year u/s 43-B of the

    Income Tax Act, 1961 ?
                                                         (A)
    (A) G.S.T.
                                                         (B)
    (B) Interest on term loan from

        scheduled bank
                                                         (C)
    (C) Provision for gratuity
                                                         (D)
    (D) Interest on cash credit from a

        small cooperative bank
                                                   97.
97. Profit   on   transfer     of   whole

    undertaking as a going concern as

    a slum sale after five years of setting

    up of a business is taxable as :

    (A) Short-term capital gain                          (A)


    (B) Long-term capital gain                           (B)


    (C) Income from business                             (C)


    (D) Income from other sources                        (D)

                                              37                         [P.T.O.
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98. Mr. Kumar sold his residential              98.
    house property at Pune ` 18,00,000                23        , 2017       ` 18,00,000
    on 23rd April, 2017, which was
    purchased by him on 11th April,                   11        , 2014       ` 9,70,000
    2014 for ` 9,70,000. Value opted for
    stamp duty purpose was ` 26,40,000.                                  ` 26,40,000
    On June 16, 2017, he purchased a                  16      , 2017
    house at Kolhapur for ` 10,00,000
                                                            ` 10,00,000
    for the purpose of residence of his
    daughter. What will be the capital
                                                                       2018-19
    gain taxable in his hand for the
    assessment year 2018-19. C.I. for
                                                                  2017-18              272
    F.Y. 2017-18 was 272 :

    (A) ` 3,05,133
                                                      (A) ` 3,05,133
    (B) ` 8,30,000
                                                      (B) ` 8,30,000
    (C) NIL
                                                      (C)
    (D) ` 16,70,000
                                                      (D) ` 16,70,000
99. Maximum deduction for medical
    expenditure on the health of senior         99.                      2019-20

    citizen   person,   if   mediclaim
    insurance is not paid on his health,
    for A.Y. 2019-20 is :

    (A) ` 25,000                                      (A) ` 25,000

    (B) ` 30,000                                      (B) ` 30,000

    (C) ` 50,000                                      (C) ` 50,000

    (D) Actual expenditure incurred                   (D)

                                           38
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100. Techno India (Pvt.) Ltd., an Indian          100.

    company purchased goods from Jems

    Ltd., U.K., an associated enterprise                         ` 3,000
    at ` 3,000 per piece. The following

    arm’s length prices have been

    determined by the most appropriate

    method :

         Situation        Price                                  1         2890


               1           2890                                  2         3050

               2           3050                                  3         2700

               3           2700
                                                                 4         2940

               4           2940

    The arm length price assuming

    international transaction is not in

    respect of wholesale trading will be :
                                                         (A) ` 3,000
    (A) ` 3,000
                                                         (B) ` 2,895
    (B) ` 2,895

                                                         (C) ` 3,050
    (C) ` 3,050

    (D) ` 2,940                                          (D) ` 2,940

                                             39                                   [P.T.O.
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ROUGH WORK




    40
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Source: Savitribai Phule Pune University. Question paper published by Savitribai Phule Pune University.