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 4

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Q-61 Which among the following is not an internal factor of pricing decision?

Options:-

  1. Consumer behavior for given product

  2. Position of product in product cycle

  3. Consumer’s expectation from company by past pricing

  4. Price elasticity as per sales of product

Q-62 Who among the following is not an observer country of the SAARC?

Options:-

  1. Iran

  2. Canada

  3. China

  4. USA

Q-63 Which one of the following is not the correct property of normal distribution?

Options:-

  1. Uni-model distribution

  2. Standard deviation is the sole parameter of the distribution

  3. Continuous distribution

  4. Equality of central values (Mean, Mode and Median)

Q-64 Which one of the following statements is not true?

Options:-

  1. Depreciation is a source of funds.

  2. Any transaction that increases working capital is a source of funds.

  3. Profits earned from non-operating activities is added to net profit while calculating profits from operations.

  4. Major source of working capital in the long run, is profits from operations.

Q-65 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 65
List 1 and List 2 Q 65

List I

List II

  1. Behaviour referent

  • Wide ranging cultural, structural and personnel strategies

  • Focus of attention for interventions

  • Manage climate and culture

  • Conflict handling

  • Few

  • Job categories and grades

  • Values/mission

Code:

Options:-

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

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

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

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

Q-66 Which one of the following statements is correct?

Options:-

  1. SEBI has been constituted under the Securities (Contract and Regulation) Act, 1956.

  2. SEBI is constituted from amongst the directors of various stock exchanges.

  3. The purpose of issuing different types of rules and regulations by SEBI is to bring monetary gains to vestors.

  4. One of the objectives of setting up SEBI is to protect the interests of investors.

Q-67 Choose the correct code for the following statements being correct or incorrect.

Statement I: When the two securities returns are perfectly positively correlated, the risk of their portfolio is just a weighted average of the individual risks of the securities.In such case, diversification does not provide risk reduction but only risk averaging.

Statement II: Total risk of a portfolio of two risk securities can be completely eliminated when their returns are perfectly negatively correlated and their proportionate holdings in the portfolio are inversely related to the relative individual risks of the securities.

Code:

Options:-

  1. Statement I is correct, but II is incorrect.

  2. Both the statements I and II are correct.

  3. Both the statements I and II are incorrect.

  4. Statement II is correct, but I is incorrect.

Q-68 Which of the following is not a method of preparation of cash budget?

Options:-

  1. Proforma Balance Sheet method

  2. Adjusted Net Income method

  3. Receipts and Payments method

  4. Cash Cycle method

Q-69 Banks are required to classify Non-Performing Assets into

Options:-

  1. Sub-standard assets, doubtful assets, and loss assets

  2. Doubtful assets, and bad debts

  3. Standard assets, and sub-standard assets

  4. Doubtful assets, bad debts and loss assets

Q-70 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 70
List 1 and List 2 Q 70

List I

List II

  1. AS-1

  • Accounting for fixed assets

  • AS-3

  • Disclosure of accounting policies

  • AS-10

  • Leases and its accounting

  • AS-19

  • Cash flow statements

Code:

Options:-

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

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

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

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

Q-71 Indicate the most popular route of privatization adopted by the Government of India in recent decades.

Options:-

  1. Cross Holdings

  2. Spontaneous Privatisation

  3. Strategic sale

  4. Management-Employee Buyout

Q-72 Choose the correct code for the following statements being correct or incorrect.

Statement I: FX Spot is an agreement between two parties to buy one currency against selling another currency at an agreed price for settlement on the spot date.

Statement II: The date of maturity of a forward contract is more than two business days in future.

Code:

Options:-

  1. Both the statements I and II are incorrect.

  2. Statement I is correct, but II is incorrect.

  3. Both the statements I and II are correct.

  4. Statement II is correct, but I is incorrect.

Q-73 Foreign investment can be made through which of the following routes?

  1. Foreign Direct Investment(FDI)

  2. Foreign Portfolio Investment(FPI)

  3. Private Equity Investment(PEI)

  4. Foreign Venture Capital Investors(FVCI)

Choose the correct answer from the code given below:

Code:

Options:-

  1. (i) and (iv)

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

  3. (i), (iii) and (iv)

  4. (i), (ii) and (iv)

Q-74 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 74
List 1 and List 2 Q 74

List I

List II

  1. Rival Firms

  • External Environment

  • Technology

  • Social and Cultural Environment

  • Improving Quality

  • Internal Environment

  • Ethics in Business

  • Global Environment

Code:

Options:-

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

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

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

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

Q-75 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 75
List 1 and List 2 Q 75

List I

(Propounder of Theory)

List II

(Theory of Motivation)

  1. Dr. Willian Ouchi

  • X Theory

  • Douglas McGregor

  • Need Hierarchy Theory

  • Frederick Herzberg

  • Z Theory

  • A.H. Maslow

  • Hygiene Theory

Code:

Options:-

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

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

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

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

Q-76 Which of the following statements is/are false?

  1. Capital profits can never be distributed as dividends to the shareholders.

  2. Dividends are paid out of profits and, therefore, do not affect the liquidity position of the firm.

  3. Every company should follow the policy of low dividend payment.

  4. Walter’s model suggests that dividend payment does not affect the market price of the share.

Choose the correct answer from the code given below:

Code:

Options:-

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

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

  3. (iii) and (iv)

  4. (ii), (iii) and (iv)

Q-77 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 76
List 1 and List 2 Q 76

List I

List II

  1. Mobile defense

  • Occupying the most desirable position in consumer’s minds, making the brand almost impregnable.

  • Contraction defense

  • The leader stretches its domain over new territories through market broadening and market diversification.

  • Position defense

  • Large companies give up weaker markets and reassign resources to stronger ones.

Code:

Options:-

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

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

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

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

Q-78 Cost plus pricing is considered appropriate for which combination of the following?

  1. Product Tailoring

  2. Public Utility Pricing

  3. Refusal Pricing

  4. Monopoly Pricing

Choose the correct answer from the code given below:

Code:

Options:-

  1. Only (ii), (iii) and (iv)

  2. Only (i) and (ii)

  3. Only (i), (ii) and (iii)

  4. Only (iii) and (iv)

Q-79 “Skimming” in e-banking is a method of

Options:-

  1. Transferring cash from one account to another account.

  2. Converting Debit Card into Credit Card.

  3. Intimating the customer about his heavy withdrawals.

  4. Stealing credit card information.

Q-80 Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code given below.

Assertion (A): Among all methods of charging depreciation on fixed assets, diminishing balance method is the best method.

Reason (R): Diminishing balance method of charging depreciation has been permitted under the Income Tax Act, 1961 for claiming deduction for depreciation.

Code:

Options:-

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

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

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

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

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