CBSE NET Commerce December-2012 Solved Paper II

  1. GDP at factor cost is (A) P (Q) + P (S) (B) GDP-IT-S (C) GDP + DT + S (D) GDP-DT + S

    Answer: b

  2. Which one is not the main objective of fiscal policy of India?

    1. To increase liquidity in the economy.

    2. To promote price stability

    3. To minimize the inequalities of income and wealth

    4. To promote employment opportunities.

    Answer: a

  3. Which one is not an element of internal environment?

    1. Marketing capability

    2. Operational capability

    3. Money and Capital market

    4. Personnel capability

    Answer: c

  4. Out of the following, which four benefits are available to hosts countries from MNC's?

    1. Transfer of technology

    2. Learning of business mannerism

    3. Strategic information sharing

    4. Creation of jobs

    5. Entertainment

    6. Better utilisation of resources

    7. Enhancing social contacts.

    8. Improved competition in local economy

      1. 1, 3, 5, 7

      2. 2, 4, 6, 8

      3. 1, 4, 6, 8

      4. 3, 6, 7, 8

      Answer: c

  5. Environmental degradation does not consist of

    1. Land degradation and soil erosion

    2. Problem of overgrazing and ecological degradation

    3. Floods

    4. None of the above

    Answer: d

  6. Which one of the following concepts is used as fund in the preparation of Funds Flow Statement?

    1. Current Assets

    2. Working Capital

    3. Cash

    4. All Financial Resources

    Answer: d

  7. Window dressing is prohibited due to

    1. Conservation Convention

    2. Convention of Disclosure

    3. Convention of Materiality

    4. Arrear of book accounts

    Answer: b

    • Assertion (A): Ratio analysis is one the tools employed to know the financial health of a concern.
    • Reason (R): Ratio analysis is not the only technique available to take investment decision.

    Codes:

    1. Both A and R are true and R is the correct explanation of (A).

    2. Both A and R are true, but R is incorrect explanation of (A).

    3. A is true, but R is false

    4. A is false, but R is true.

    Answer: a

  8. Which of the following relate to measures of non-financial performance of a concern?

    1. Customer satisfaction

    2. Business process improvement

    3. Learning organisation

    Choose the right combination.

    1. 1, 3, 2, 4

    2. 2, 4, 3

    3. 4, 1, 3

    4. 1, 2, 4

    Answer: d

  9. Consider the following parties:

    1. Secured creditors

    2. Unsecured creditors

    3. Partners who have granted loans

    4. Partners who have contributed over and above profit sharing ratio

    Arrange them in correct sequence in the event of the dissolution of a firm.

    1. 2, 1, 3, 4

    2. 1, 2, 3, 4

    3. 1, 2, 4, 3

    4. 2, 1, 4, 3

    Answer: b

  10. Which kind of economics explains the phenomenon of cause and effect relationship?

    1. Normative

    2. Positive

    3. Micro

    4. Macro

    Answer: b

    • Assertion (A): Marginal cost and differential cost do not convey the same meaning in all the circumstances.
    • Reason (R): Differential cost increases or decreases due to change in fixed cost.
    1. A is true but R is false

    2. A is false but R is true

    3. A and R are correct and R is correct explanation of (A).

    4. Both A and R are correct, but R is not the correct explanation of (A).

    Answer: c

  11. Consider the following:

    1. Pricing objectives

    2. Pricing methods

    3. Pricing strategies

    4. Pricing decisions

    Arrange them in correct sequences:

    1. 1, 3, 2, 4

    2. 1, 4, 3, 2

    3. 2, 1, 4, 3

    4. 4, 2, 3, 1

    Answer: b

  12. A commodity is used for multiple purposes, and then the demand for it is known as

    1. Joint Demand

    2. Composte Demand

    3. Direct Demand

    4. Autonomous Demand

    Answer: b

  13. Match List-I with List-II and select the correct answer.

    List-I List-II
    1. Administered price

    2. Parity pricing

    3. Competitive price

    4. Discriminating price

    1. Landed cost of imports

    2. Liberalized economy

    3. Public enterprises

    4. Fixed by Government

    • A
    • B
    • C
    • D
      • 1
      • 2
      • 3
      • 4
      • 2
      • 3
      • 4
      • 1
      • 3
      • 4
      • 2
      • 1
      • 4
      • 2
      • 1
      • 3

    Answer: b

  14. Sample design involves the following:

    1. Sampling unit

    2. Size of samples

    3. Type of universe

    4. Sampling procedure

    Which one of the following sequences is correct?

    1. 1, 2, 3, 4, 5

    2. 3, 4, 1, 2, 4

    3. 3, 1, 4, 2, 5

    4. 3, 5, 1, 4, 2

    Answer: c

  15. Which one of the following is not a measure of dispersion?

    1. Quartile

    2. Range

    3. Mean Deviation

    4. Standard Deviation

    Answer: a

  16. If bxy = 0.25 and byx = 0.64, correlation coefficient is

    1. 0.16

    2. 0.40

    3. 0.89

    4. 0.30

    Answer: b

  17. Struge's rule is used to find out directly

    1. Number of classes in a continuous distribution

    2. Size of class limits

    3. Direction of the classification

    4. None of the above

    Answer: a

  18. Which of the following software has application in both Mathematics and Statistics?

    1. SPSS

    2. SAS

    3. R

    4. None of the above

    Answer: d

  19. Match the following:

    List-I List-II
    1. The Practise of Management

    2. Philosophy of Management

    3. Scientific Management

    4. General and Industrial Administration

    1. Henry Fayol

    2. FW Taylor

    3. Oliver Sheldon

    4. Peter F. Drucker

    • A
    • B
    • C
    • D
      • 1
      • 2
      • 3
      • 4
      • 4
      • 3
      • 2
      • 1
      • 4
      • 3
      • 1
      • 2
      • 3
      • 4
      • 2
      • 1

    Answer: b

    • Assertion (A): All decisions taken through mental process are rational.
    • Reason (R): Decision making is a mental process.
    1. R is correct, but A is not correct

    2. A is correct, but R is not correct

    3. Both A and R are correct

    4. Both A and R are not correct

    Answer: a

  20. Who among the following developed the technique of Management by Exception?

    1. Joseph L. Massie

    2. Lester R. Bittel

    3. L. F. Urwick

    4. Peter F. Drucker

    Answer: b

  21. Which among the following are parts of job description?

    1. duties performed

    2. Job summary

    3. Job identification

    4. Supervision given

    5. Delegation of authority

      1. 1, 2, 3, and 4

      2. 2, 3, 4 and 5

      3. 1, 3, 4, and 5

      4. 1, 2, 3 and 5

      Answer: a

  22. Appointment of independent Directors is the part of Corporate Governance as per the

    1. SEBI

    2. Indian Companies Act

    3. Government of India

    4. RBI

    Answer: a

  23. A method for achieving maximum market response from limited marketing resources by reorganising differences in the response characteristics of various parts of the market is known as

    1. Market targeting

    2. Market positioning

    3. Market segmentation

    4. Market strategy

    Answer: c

  24. Who plays their significant role in distribution of goods when they do not sell to ultimate users or consumers?

    1. Retailer

    2. Wholeseller

    3. Mediator

    4. Commission agent

    Answer: b

  25. In Marketing Mix, which four P's are covered?

    1. Product, Price, Place, promotion

    2. Product, Price, Power, Promotion

    3. Product, Price, Penetration, Promotion

    4. Product, Price, Positioning, Promotion

    Answer: a

  26. Which research includes all types of researches into human motives when it refers to qualitative research designed to uncover the consumer's sub consciousness or hidden motivations?

    1. Motivational Research

    2. Marketing Research

    3. Managerial Research

    4. Price Research

    Answer: a

  27. False and misleading claims and vulgarity in advertisements do not match with

    1. Aggressive advertising

    2. Ethics in advertising

    3. Mass level of advertising

    4. Sales promotion

    Answer: b

  28. Arrange the following steps involved in captal budgeting in order of their occurrence:

    1. Project selection

    2. Project appraisal

    3. Follow up

    4. Project execution

      1. 2, 3, 1, 5, 4

      2. 3, 2, 1, 5, 4

      3. 1, 3, 2, 5, 4

      4. 1, 2, 3, 5, 4

      Answer: b

  29. Which method does not consider the time value of money?

    1. Net Present Value

    2. Internal Rate of Return

    3. Average Rate of Return

    4. Profitability

    Answer: c

  30. Which formula is used measure the degree of Operating leverage?

    1. EBIT/sales

    2. C/EBIT

    3. EBIT/EBT

    4. EBIT/C

    Answer: b

  31. Which one is more appropriate for cost of retained earnings?

    1. Weighted Average Cost of Capital

    2. Opportunity cost to the firm

    3. Expected rate of return by the investor

    4. None of the above

    Answer: b

  32. Match the following with the most suitable options.

    List-I List-II
    1. Modigliani-miller approach

    2. Net Operating income approach

    3. Short term money market instrument

    4. Factoring

    1. Commercial paper

    2. Working capital

    3. Capital structure

    4. Arbitrage

    • A
    • B
    • C
    • D
      • 4
      • 3
      • 1
      • 2
      • 3
      • 4
      • 1
      • 2
      • 3
      • 2
      • 1
      • 4
      • 4
      • 2
      • 3
      • 1

    Answer: a

  33. During which plan was the National Apprenticeship Training Scheme introduced?

    1. 1st Five Year Plan

    2. 2nd Five Year Plan

    3. 4th Five Year Plan

    4. Annual Plans

    Answer: b

  34. Match the following:

    List-I List-II
    1. An ordinary person does not want to work on his own

    2. An individual is willing to work on his own

    3. Motivational Factors

    4. Esteem Needs

    1. Hierarchy Theory

    2. Hygiene Theory

    3. X-Theory

    4. Y-Theory

    • A
    • B
    • C
    • D
      • 1
      • 2
      • 3
      • 4
      • 3
      • 4
      • 1
      • 2
      • 1
      • 4
      • 2
      • 3
      • 3
      • 4
      • 2
      • 1

    Answer: d

  35. Arrange the following staffing procedures in the correct sequences:

    1. Determining sources of Personnel supply

    2. Preparing personal specifications.

    3. Selection of personnel.

    4. Determining personnel characteristics

      1. 2, 1, 4, 3

      2. 1, 2, 3, 4

      3. 2, 1, 3, 4

      4. 2, 3, 1, 4

      Answer: a

  36. Which among the following is not a voluntary method for prevention and settlement of disputes?

    1. Collective Bargaining

    2. Standing orders

    3. Joint Consultation

    4. Works Committee

    Answer: d

  37. Statement A: It is no better to pay employees for little than to pay too much. Statement B: Competent employees will remain competent forever.

    1. Statement A is true, but B is false.

    2. Statement B is true, but A is false.

    3. Both Statements A and B are true.

    4. Both Statements A and B are false.

    Answer: a

  38. Match the following:

    List-I List-II
    1. Credit Control

    2. Corporate Control

    3. IPO Control

    4. ULIP Control

    1. MCA

    2. SEBI

    3. IRDA

    4. RBI

    • A
    • B
    • C
    • D
      • 4
      • 2
      • 3
      • 1
      • 4
      • 1
      • 2
      • 3
      • 2
      • 3
      • 4
      • 1
      • 4
      • 1
      • 3
      • 2

    Answer: d

  39. Which one among the following has not started Commercial Banking?

    1. SIDBI

    2. IDBI

    3. ICICI

    4. UTI

    Answer: a

  40. What is OTP in credit card transactions?

    1. Odd Transaction Password

    2. Owner's Tradng Password\

    3. One Time Password

    4. One Time Pin code

    Answer: c

  41. The powers of Controller of Capital Issues of India is now shifted to

    1. Ministry of Finance

    2. SEBI

    3. AMFI

    4. Ministry of Corporate Affairs

    Answer: b

  42. The success of E-banking depends upon:

    1. Multi-layer Security System

    2. Risk and Surveillance Management

    3. Updated Flawless Softwares

    4. Stringent Legal Frame-work

      1. 1 and 2

      2. 1, ii, and 3

      3. 2, 3, and 4

      4. 1, 2, 3 and 4

      Answer: b

  43. International liquidity comprises which four of the following?

    1. Gold held by Central Banks.

    2. Gold held by families.

    3. Forex Reserve held by Commercial Banks.

    4. Mineral wealth.

    5. SDRs.

    6. Borrowing facilities.

    7. NRIs FDRs

    v3. Credit facilities available under SWAP.

    1. 1, 2, 3, 4

    2. 2, 3, 4, 8

    3. 1, iii, 5, viii

    4. 3, 4, 7, 8

    Answer: c

  44. Which among the following are important bodies of WTO?

    1. Dispute Settlement Body.

    2. NAFTA

    3. Trade Policy Review Body.

    4. ASEAN

    5. Council for Trade in Goods

    6. IBRD

    7. Council for Trade related aspects of Intellectual Property Rights.

    8. GATT

    An appropriate combination is

    1. 1, 2, 3, 4

    2. 2, 3, 4, 5

    3. 1, 3, 5, 7

    4. 4, 5, 6, 8

    Answer: c

  45. Which one is not the source of External Finance?

    1. WTO Funds

    2. World Bank Group

    3. Export Credit

    4. Foreign Direct Investment

    Answer: a

  46. Which one is called Bretton-Wood Twins?

    1. IBRD and IDA

    2. IMF and IFC

    3. IMF and IBRD

    4. IDA and IFC

    Answer: c

  47. UNCTAD stands for

    1. United Nations Committee on Tariff and Development.

    2. United Nations Conference on Trade and Deficit.

    3. United Nations Conference on Trade and Development.

    4. Union of Nations Cause for Trade and Development.

    Answer: c