WB SET Exam 2017: 20th SET, Paper II, Commerce
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Question Booklet Series X
0617
PAPER–II Question Booklet No.
(Identical with OMR
Subject Code : 06 Answer Sheet Number)
COMMERCE
Time : 1 Hour 15 Minutes Maximum Marks: 100
Instructions for the Candidates
1. Write your Roll Number in the space provided on the top of this page as well as on the OMR Sheet provided.
2. At the commencement of the examination, the question booklet will be given to you. In the first 5 minutes, you
are requested to open the booklet and verify it:
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replaced.
(iv) After this verification is over, the Question Booklet Series and Question Booklet Number should be entered
on the OMR Sheet.
3. This paper consists of fifty (50) multiple-choice type questions. All the questions are compulsory. Each question
carries two marks.
4. Each Question has four alternative responses marked: A B C D . You have to darken the circle as
indicated below on the correct response against each question.
Example: A B C D , where C is the correct response.
5. Your responses to the questions are to be indicated correctly in the OMR Sheet. If you mark your response at
any place other than in the circle in the OMR Sheet, it will not be evaluated.
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COMMERCE
PAPER II
1. Sampling error decreases as 6. Giffen goods are those goods
(A) Sample size decreases (A) For which demand increases as price
(B) Population size decreases increases.
(C) Sample size increases (B) Which have a high income elasticity of
(D) Population size increases demand.
(C) Which are in very short supply.
(D) Which have a low cross elasticity of demand.
2. The normal distribution is also known as
(A) Asymmetric distribution 7. The short run average cost curve is U-shaped
(B) Symmetric distribution because of
(C) Platykurtic distribution (A) The operation of the representative firm.
(D) Leptokurtic distribution (B) The existence of the optimum firm.
(C) The operation of increasing costs.
(D) The operation of the law of variable
proportions.
3. If two variables are linearly related, the coefficient
of correlation will be
8. The sale of branded articles is very common in
(A) + 1
the situation of
(B) – 1
(A) Perfect competition
(C) 1
(B) Monopoly
(D) 0
(C) Monopolistic competition
(D) Oligopoly
4. For testing goodness of fit we use 9. Total revenue will be maximum when
(A) Normal test (A) Price elasticity of demand is equal to one.
(B) t – test (B) Price elasticity of demand is less than one.
(C) F – test (C) Price elasticity of demand is greater than
(D) – test (chi-square) one.
(D) Price elasticity of demand is infinity.
10. Price discrimination will be profitable if
5. If rxy = 0, the two regression lines will (A) It is practised under perfect competition.
(A) Coincide (B) It is practised under monopoly.
(B) Be parallel (C) It is practised under oligopoly.
(C) Perpendicular (D) Price elasticity of demand is different under
(D) Intersect different parts of the market.
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11. Match the Industrial Policies in List I with their 14. Which one of the following was not related to the
respective thrusts in List II and select the correct answer steps initiated to overcome the deep economic crisis of
using the codes given below the Lists: 1991?
List I List II (A) Fiscal Correction aimed at reducing deficit
(a) Industrial Policy (i) Bent on developing (B) For laying strong foundation of mixed
1948 heavy industry economy
(C) Abolishing Industrial licensing raj
(b) Industrial Policy (ii) Breaking the vicious (D) Establishing Foreign Investment Promotion
1956 circle inhibited by Board
infrastructural gap and
inadequacies of
performance
(c) Industrial Policy (iii) Mixed Economy
1980
(d) Industrial Policy (iv) Redefining industrial 15. Match factors of Business Environment in
List I with their respective classifications in List II and
1977 sickness,
select correct answers using codes given below the
unemployment, rural- Lists.
urban disparities
List I List II
Codes: (a) Stakeholders (i) Non-Economic
(a) (b) (c) (d) Environment
(A) (i) (ii) (iv) (iii) (b) Marketing (ii) Macro-Economic
(B) (i) (iii) (iv) (ii) Intermediaries Environment
(C) (iii) (i) (ii) (iv) (c) Balance of (iii) Micro-Economic
(D) (iii) (ii) (i) (iv) Payment Situation Environment
(d) Demographic (iv) Internal Environment
Factors
Codes:
12. Which one of the following cannot be attributable (a) (b) (c) (d)
to a feature of market economy? (A) (i) (ii) (iii) (iv)
(A) Free Enterprise (B) (i) (iv) (ii) (iii)
(B) Existence of Market & Price (C) (iv) (iii) (ii) (i)
(C) Central Planning (D) (iv) (iii) (i) (ii)
(D) Entreprenurial Activism
13. Kyoto Protocol Pertains to 16. Span of control refers to span of .
(A) Capital Formation (A) Authority
(B) Globalisation (B) Accountability
(C) Environmental Protection (C) Activity
(D) Unemployment Reduction (D) Responsibility
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17. Maslow’s Hierarchy of needs structure comprises 22. ‘Time’ and ‘Breadth’ dimensions are the two
of major dimensions of
(A) Five needs hierarchy (A) Social Marketing
(B) Seven needs hierarchy (B) Sales Management
(C) Three needs hierarchy (C) Societal Marketing
(D) Six needs hierarchy (D) Consumerism
18. Importance of subordinates role in decision 23. Consumerism tries to increase
making process refers to (A) Rights and powers of consumers
(A) Centralised Organisation Structure (B) Rights and powers of sellers
(B) Decentralised Organisation Structure (C) Rights and powers of distributors
(C) Matrix Organisation Structure (D) Rights and powers of government
(D) Functional Organisation Structure
24. Putting a price tag of Rs. 199/- on any product is
19. In ‘Line and Staff’ organisation, the authority lies (A) Premium pricing strategy
in (B) Perceived value pricing strategy
(A) Line (C) Psychological pricing strategy
(B) Staff (D) Skimming pricing strategy
(C) Both Line and Staff
(D) Neither Line nor Staff
25. Which of the following variables is not used by
the marketers for demographic segmentation?
20. Business ethics deals with (A) Gender
(A) Personal values in the work-place. (B) Age
(B) Corporate values regarding business (C) Income
profitability.
(D) Lifestyle
(C) Integration of personal and corporate values
in work-related contexts.
(D) Values integrating business, society and
nature. 26. X and Y are partners in a firm sharing profits in
1
the ratios of 2 : 1. Z is admitted with a profit sharing.
3
What will be the new profit sharing ratio of X, Y & Z?
21. Product variations refer to the (A) 3 : 3 : 3
(A) Length of the Product portfolio. (B) 4 : 3 : 2
(B) Breadth of the Product portfolio. (C) 4 : 2 : 3
(C) Width of the Product portfolio. (D) 2 : 3 : 4
(D) Depth of the Product portfolio.
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27. Which one of the following will not affect the 31. HR plans of any organization does not include
working capital? (A) Personnel plans
(A) Realisation of Cash from Debtors (B) Production plans
(B) Sale of Plant and Machinery in Cash (C) Compensation plans
(C) Issue of Equity Shares (D) Training and development plans
(D) Redemption of Debentures
32. Providing Leave Travel Allowance (LTA) to the
28. If margin of safety is Rs. 2,40,000 (40% of sales) workers/employees fulfills their
(A) Basic needs
and p ratio is 30%. Then fixed cost is
v (B) Self actualisation needs
(A) Rs. 1,08,000
(C) Social needs
(B) Rs. 3,60,000
(D) Self-esteem needs
(C) Rs. 1,80,000
(D) Rs. 1,00,000
29. ABC Ltd. forfeited 100 shares of Rs. 10 each for 33. An interview, in which we ask about a candidate’s
non-payment of final call of Rs. 2 each. Out of these 60 behaviour in a certain given situation is
shares were re-issued at Rs. 9 per share as fully paid.
(A) Situational interview
Amount transferred to Capital Reserve is
(B) Situational test
(A) Rs. 400
(C) Behavioural tests
(B) Rs. 420
(D) Job related questions
(C) Rs. 600
(D) Rs. 480
34. The term job enlargement means
30. When a partnership is dissolved and the following (A) Redesigning jobs for workers.
claims need to be met out of cash received on piece-meal (B) Assigning additional activities for workers.
basis, then which is the correct sequence in which these (C) Moving workers from one job to other.
claims have to be met? (D) Increasing the job time.
(i) Any partner’s loan
(ii) Capital and Current Account Balances
(iii) Expenses of Dissolution
35. Which one of the following is not usually an
(iv) Outsider’s claim example of indirect participation by the employees in
Codes: participative management?
(A) (iii) (iv) (i) (ii) (A) Worker-director
(B) (ii) (iii) (i) (iv) (B) Joint management council member
(C) (i) (ii) (iv) (iii) (C) Collective bargaining
(D) (i) (ii) (iii) (iv) (D) Suggestion-box scheme
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36. Which of the following committees are related to 41. Market values are often used in computing the
banking sector reforms in India? weighted average cost of capital because
(A) Narasimham committee and L.C. Gupta (A) This is the simplest way to do the calculation.
committee (B) This is consistent with the goal of maximising
(B) L.C. Gupta committee and Verma committee shareholder value.
(C) Narasimham committee and Verma (C) This is required by SEBI.
committee (D) This is a very common mistake.
(D) Verma committee and Malhotra committee
42. Two firms that are virtually identical except for
their capital structure are selling in the market at different
values. According to M & M
(A) One of the firms will be at greater risk of
37. SIDBI was set up in bankruptcy.
(A) 1989 (B) The firm with greater financial leverage will
(B) 1990 have the higher value.
(C) 1988 (C) This proves that markets cannot be efficient.
(D) 1991 (D) This situation will not continue for long
because arbitrage will eventually cause the
firms to sell at the same value.
43. Consider the following statements about the
38. CBS implies dividend growth model
(A) Core Banking System (i) The model prices shares on the basis of the
(B) Central Banking System present value of expected future dividends.
(C) Core Banking Solution (ii) The model relies on the ability to predict
(D) Central Banking Solution a constant future growth rate of dividend
payments.
(iii) The dividend growth model does not
accommodate future changes in
39. In 1969, commercial banks were shareholder’s required rate of return.
nationalised. Choose the correct option from the following:
(A) 6 (A) (i) and (ii) are correct.
(B) 20 (B) (ii) and (iii) are correct.
(C) 14 (C) Only (i) is correct.
(D) 11 (D) Only (iii) is correct.
44. The dividend irrelevance theorem to share
40. NABARD came into existence on valuation was propounded by
(A) July 14, 1982 (A) James E. Walter
(B) June 14, 1982 (B) Myron Gordon
(C) June 12, 1982 (C) Modigliani and Miller
(D) July 12, 1982 (D) David Durand
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45. Cost of debt is cheaper than the cost of equity 48. The main promoter of trade liberalisation was
because of the following: (A) GATT
(i) Interest rate remains fixed as per contract. (B) NAFTA
(ii) The amount of interest payment depends (C) CEPTA
on the performance of the firm.
(D) CISA
(iii) Interest payment brings tax savings to the
firm.
Choose the correct option from the following:
(A) (i) and (ii) are correct.
(B) (i) and (iii) are correct.
(C) (ii) and (iii) are correct.
(D) Only (iii) is correct. 49. The first wave of emerging market TNCs made a
global appearance because of .
(A) Prior connections
46. When managers in an international business
(B) The advantage of low cost labour and raw
consider market segmentation in foreign countries, they
material
need to be cognizant of the differences between countries
in the structure of market segments and existence of (C) The search for new markets
market segments that (D) The use of technological advantages
(A) Exist in the home country.
(B) Transcend national borders.
(C) Are divided by gender.
(D) Are based on home market models.
47. Ultimately was replaced by 50. Which of the following is not a common feature
on 1st January 1995. of direct lending by Exim Bank?
(A) GATS, WTO (A) That they are for medium or long term.
(B) WTO, GATT (B) The size of the loan is high.
(C) GATT, WTO (C) Security is not insisted upon.
(D) IMF, GATT (D) Interest rates are relatively low.
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Source: West Bengal College Service Commission. Question paper published by West Bengal College Service Commission.