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 December 2018 Commerce Part 2

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Q-21 Which one of the following is not the advantage of database management system?

Options:-

  1. Centralized control

  2. Shared data

  3. Improved data integrity

  4. High acquisition costs

Q-22 Combined leverage can be used to measure the relationship between

Options:-

  1. EBIT and EPS

  2. Sales and EPS

  3. PAT and EPS

  4. Sales and EBIT

Q-23 Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R). Read the statements and choose the correct answer using the code given below.

Assertion (A): Databases assist in market segmentation, especially behavioural segmentation such as developing loyalty segments.

Reason (R): Customer Relationship Management (CRM) databases have become an asset for the analysis of customer behavior.

Code:

Options:-

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

  2. (A) is correct but (R) is not correct.

  3. Both (A) and (R) are incorrect.

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

Q-24 Match the items of List I with the items of List II and choose the correct answer from the code given below.

List 1 and List 2 Q 24
List 1 and List 2 Q 24

List I

(Type of Interview)

List II

(Usual Application)

  1. Structured

  • A realistic approach that yields comparable answers plus indepth insights

  • Unstructured

  • Useful to understand applicant’s reasoning and analytical abilities under modest stress

  • Mixed

  • Useful for valid results, especially when dealing with large number of applicants

  • Behavioural

  • Useful when the interviewer tries to probe personal details of the candidate to analyse why they are not fit for the job

Code:

Options:-

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

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

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

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

Q-25 Which one of the following statements is not true?

Options:-

  1. Long-term liabilities due for payment within a year should be treated as current liabilities.

  2. Cost of sales is a better numerator than sales while calculating stock turnover.

  3. Conversion of debentures into preference shares will decrease debt-equity ratio.

  4. Higher operating ratio indicates higher profits.

Q-26 Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R). Read the statements and choose the correct answer using the code given below.

Assertion (A): There exists excess capacity of the production for the firms if these incur losses.

Reason (R): Their production level has to remain below their economic capacity level.

Code:

Options:-

  1. (A) is correct but (R) is incorrect.

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

  3. (A) is incorrect but (R) is correct.

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

Q-27 Which among the following is not included in seven Ps of marketing mix given by Booms and Bitner?

Options:-

  1. Process

  2. People

  3. Politics

  4. Physical Evidence

Q-28 A and B are partners in a firm sharing profits in the ratio of 3:2. They admit X as a partner for 1/3 share in profits of the firm. The new profit sharing ratio of A, B and X is

Options:-

  1. 3:2:2

  2. 3:2:1

  3. 6:4:5

  4. 3:2:3

Q-29 Under sec. 194 IB of the Income Tax Act, 1961 an individual or HUF (who is not required to get his accounts audited u/s 44 AB) who is responsible for paying to a resident any rent, shall deduct income tax, for the use of any land and building or both, if the rent exceeds

Options:-

  1. RS. 25,000 per month

  2. RS. 15,000 per month

  3. RS. 40,000 per month

  4. RS. 50,000 per month

Q-30 In which one of the following forms of worker’s participation in management is the role of the workers council not just advisory but the management is under a moral obligation to acknowledge, accept and implement the unanimous decision of the council?

Options:-

  1. Administrative Participation

  2. Consultative Participation

  3. Associative Participation

  4. Decisive Participation

Q-31 Which one of the following is not true for introducing multiple brands in a category?

Options:-

  1. Attracting consumers seeking variety who may otherwise have switched to another brand

  2. Yielding economies of scale in advertising, sales, merchandising and physical distribution

  3. Increasing shelf presence and retailer dependence in the store

  4. Decreasing internal competition within the firm

Q-32 Bretton Woods Conference resulted into the establishment of which of the following?

Options:-

  1. IMF and IDA

  2. IDA and ADB

  3. IMF and IBRD

  4. IBRD and IFC

Q-33 Match the items of List I with items of List II and choose the correct answer from the code given below.

List 1 and List 2 Q 33
List 1 and List 2 Q 33

List I

List II

  1. NPA

  • The percentage of deposits to be kept with RBI in the form of cash.

  • SLR

  • The rate at which RBI lends money to commercial banks.

  • Repo Rate

  • Loans and advances not paid for more than 90 days.

  • CRR

  • The percentage of net demand and time liabilities to be kept in the form of liquid assets.

Code:

Options:-

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

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

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

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

Q-34 Which of the following variables is not known in Internal Rate of Return method of capital budgeting?

Options:-

  1. Discount rate

  2. Amount of cash outflows

  3. Amount of cash inflows

  4. Life of the project

Q-35 To examine whether the company is pursuing its best opportunities with respect to markets, products, and channels is the purpose of which one of the following types of marketing control?

Options:-

  1. Annual-plan control

  2. Profitability control

  3. Strategic control

  4. Efficiency control

Q-36 Which of the following are included in the international liquidity? Indicate the correct code.

i) Foreign exchange reserve

ii) Borrowing capacity of the various countries

iii) Gold reserves

Choose the correct answer from the code given below:

Code:

Options:-

  1. (ii) and (iii)

  2. (i), (ii) and (iii)

  3. (i) and (iii)

  4. (i) and (ii)

Q-37 Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R). Read the statements and choose the correct answer using the code given below.

Assertion (A): Training aids in encouraging and achieving self-development and self-confidence.

Reason (R): It helps a person handle stress, tension, frustration and confict.

Code:

Options:-

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

  2. Both (A) and (R) are incorrect.

  3. (A) is correct but (R) is not correct.

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

Q-38 Match the items of List I with the items of List II and choose the correct answer from the code given below.

List 1 and List 2 Q 38
List 1 and List 2 Q 38

List I

List II

  1. Compensation received by an employee from his employer on termination of job

  • Exemption up to specified limit

  • Pension received by the widow of an employee

  • Profits in lieu of salary

  • Foreign allowance for rendering services abroad

  • Income from other sources

  • Children hostel allowance

  • Fully exempt from tax

Code:

Options:-

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

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

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

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

Q-39 Advertising method in which a commercial is broadcast simultaneously on several radio stations and/or television channels is known as

Options:-

  1. Road block

  2. Road side

  3. Intensified campaign

  4. Exclusive drive

Q-40 Match the items of List I with the items of List II and choose the correct answer from the code given below.

List 1 and List 2
List 1 and List 2

List I

List II

  1. Direct investment overseas aimed at manufacturing products not manufactured by the firm in the home country.

  • Inward FDI

  • Direct investment in a foreign country aimed to sell the output of the firm’s domestic production.

  • Backward Vertical FDI

  • Direct investment overseas aimed at providing inputs for the firms production process in the home country.

  • Conglomerate FDI

  • Foreign firms investing overseas and taking control over foreign assets.

  • Forward Vertical FDI

Code:

Options:-

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

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

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

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

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