Paper 3 has been removed from NET from 2018 (Notification)- now paper 2 and 3 syllabus is included in paper 2. Practice both paper 2 and 3 from past papers.

NTA NET Commerce 26 June 2019 Part 2 Download all the papers to prepare for NET 2020

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Ques 21. Shopping goods have which of the following features?

(a) These products are generally durable in nature

(b) Consumers generally compare the goods of various sellers and then they buy such goods

(c) Per unit price of these goods is generally high

(d) These goods are regularly and continuously in demand

(e) These goods are sold as a result of aggressive promotional efforts

Choose the right answer from the options given below:

(I) (c), (d) and (e)

(II) (a), (b) and (c)

(III) (b), (c) and (d)

(IV) (a), (c) and (e)

Ques 22. A statement of changes in financial position typically would NOT disclose the effect of

(I) share capital issued to acquire productive facilities

(II) Dividends on share declared

(III) Cash dividend declared but not yet paid

(IV) Purchase and retirement of treasury stock

Ques 23. Which one of the following is NOT the pre - requisite of price discrimination?

(I) Firm must have monopoly power

(II) Product have multiple close substitutes and different uses

(III) Markets are separated and segmented

(IV) Price elasticity of product must differ in different markets

Ques 24. SIDBI was set up as a subsidiary of IDBI to

(I) takeover the functions of small business financing of IDBI

(II) Takeover the venture capital operation of IDBI

(III) Reconstruct and rehabilitate the sick and closed industrial units financed by IDBI

(IV) Facilitate, finance and promote India's foreign trade

Ques 25. Arrange the following in order of their manifestations:

(a) Offer

(b) Acceptance

(c) Breach of Contract

(d) Contract

Choose the correct option from the following:

(I) (a), (b), (c) and (d)

(II) (a), (b), (d) and (c)

(III) (b), (c), (d) and (e)

(IV) (a), (d), (c) and (b)

Ques 26. Find the marginal revenue of a firm that sells a product at a price of ₹ 10 and the price elasticity of demand for the product is (-) 2.

(I) ₹ 5

(II) ₹ 10

(III) ₹ 30

(IV) ₹ 15

Ques 27. The current market price of a company's share is ₹ 90 and the expected dividend per share next year is ₹ 4.5. If the dividend is expected to grow at a constant rate of 8%, the shareholder's required rate of return will be

(I)

(II)

(III)

(IV)

Ques 28. A firm consumes 90000 units of a certain item of raw material in its production process annually. It costs ₹ 3 per unit, the cost per purchase order is ₹ 300 and the inventory carrying cost is per year. What is the EOQ?

(I) units

(II) units

(III) units

(IV)units

Ques 29. Assertion (A): According to Net Income (NI) Approach, capital structure decision is relevant in the valuation of a firm.

Reason (R): A firm can change its total value and its overall cost of capital by change in the degree of leverage in its capital structure.

In the context of the above two statements, which one of the following options is correct?

(I) Both (A) and (R) are correct and (R) is the right explanation of (A)

(II) Both (A) and (R) are correct but (R) is not the right explanation of (A)

(III) Both (A) and (R) are incorrect

(IV) (A) is correct but (R) is not correct

Ques 30. Statement I: Agreement without consideration is always valid.

Statements II: All contracts are agreements but all agreements are not contracts.

In the context of the above two statements, which of the following codes is correct?

(I) Statements (I) and (II) both are correct

(II) Both statements (I) and (II) both are incorrect

(III) Statement (I) is incorrect but Statement (II) is correct

(IV) Statement (I) is correct but Statement (II) is incorrect

Ques 31. Statement I: Though closely related, job evaluation and performance appraisal are not the same.

Statement II: The purpose of Job evaluation is to fix the remuneration and other relevant benefits.

In the context of above two statements, which one of the following codes is correct?

(I) both the statements (I) and (II) are correct

(II) Both the statements (I) and (II) are incorrect

(III) Statement (I) is correct while statement (II) is incorrect

(IV) Statement (I) is incorrect while statement (II) is correct

Ques 32. Statement I: The arithmetic mean is an all-purpose average.

Statement II: Median and mode are called positional averages.

In the context of the above two statements, which one of the following codes is correct?

(I) Both the statements (I) and (II) are correct

(II) Both the statement (I) and (II) are incorrect

(III) Statement (I) is correct but (II) is incorrect

(IV) Statement (II) is correct but (I) is incorrect

Ques 33. Product A requires 10 kg of material at the rate of ₹ 5 per kg. The actual consumption of material for the manufacturing of product A comes to 12 kg of material at the rate of ₹ 6 per kg. Direct material cost variance is

(I) ₹ 22 (favourable)

(II) ₹ 22 (unfavourable)

(III) ₹ 12 (favourable)

(IV) ₹ 12 (unfavourable)

Ques 34. Redressal mechanism for consumer disputes under section 9 of the Consumer Protection Act envisages a

(I) single - tier system

(II) Two - tier system

(III) Three - tier system

(IV) Open system independent of hierarchy

Ques 35. Which of the following characteristics are related to relationship marketing?

(a) Product feature orientation

(b) Product benefit orientation

(c) Frequent consumer contact

(d) High concern for quality

Choose the correct option from the following:

(I) (b), (c) and (d)

(II) (a), (b) and (c)

(III) (a), (c) and (d)

(IV) (a), (b) and (d)

Ques 36. Building long term mutually satisfying relations with key customers, suppliers, distributors, in order to earn and retain their long term preference and business is known as

(I) Relationship Marketing

(II) Social Marketing

(III) Niche Marketing

(IV) Service Marketing

Ques 37. Capital structure and leverage decisions come under the ambit of

(I) Investment Decisions

(II) Distribution Decisions

(III) Financing Decision

(IV) Dividend Decision

Ques 38. Assertion (A): U shaped long run average cost curve is based on the assumption that economies of scale prevail at small levels of production and diseconomies of scale prevails at larger levels of production.

Reason (R): Decreasing returns to scale arises primarily because as the scale of operation increases, it becomes even more difficult to manage the firm effectively.

In the context of the above two statements, which of the following codes is correct?

(I) Assertion (A) is correct and (R) is the correct explanation of (A)

(II) Both (A) and (R) are correct but (R) is not the right explanation of (A)

(III) Assertion (A) is correct but Reason (R) is incorrect

(IV) Both (A) and (R) are incorrect

Ques 39. Chalapathi Rao committee was constituted for restructuring of

(I) State Financial Corporation in India

(II) Commercial Banks in India

(III) Cooperative Banks in India

(IV) Regional Rural Banks in India

Ques 40. 'Motivation force or level of effort is not equal to satisfaction and performance' is propounded by

(I) Porter Lawler model

(II) Vroom's expectancy theory

(III) X and Y theory

(IV) Adam's equity theory

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