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 5

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Q-81 Which one of the following is agricultural income under Income Tax Act?

Options:-

  1. Income from dairy farm, poultry farm, etc.

  2. Income from sale of replanted trees where denuded parts of the forest are replanted and subsequent operations in forestry are carried out.

  3. Dividend from a company engaged in agriculture.

  4. Income from the land used for storing agricultural produce.

Chosen Option:- 4

Q-82 choose the correct code for the following statements being correct or incorrect.

Statement I: Thousands of employees die every day in factories due to accidents.

Statement II: To make an accident-free plant adds to cost and decreases productivity.

Code:

Options:-

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

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

  3. Both the statements I and II are correct.

  4. Both the statements I and II are incorrect.

Chosen Option:- 1

Q-83 The monopoly involves a social cost mainly due to its emphasis on which one of the following?

Options:-

  1. Charging different prices from different categories of buyers of the same product.

  2. Earning net profit in all possible situations.

  3. Attempting to stall entry of other firms in the market.

  4. Lower output at a higher cost in a normal profit situation.

Chosen Option:- 1

Q-84 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): A low debt-equity ratio is generally recommended for a newly started business.

Reason(R): During the initial years of the business, debt servicing will prove to be less burdensome.

Code:

Options:-

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

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

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

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

Chosen Option:- 3

Q-85 Production function on based on which combination of the main characteristics of the inputs from the following:

  1. Substitutability

  2. Complementarity

  3. Flexibility

  4. Specificity

Code:

Options:-

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

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

  3. Only (i) and (ii)

  4. Only (iii) and (iv)

Chosen Option:- 1

Q-86 The companies having business in a large number of countries around the world at present are called

Options:-

  1. Multinational Enterprises (MNEs)

  2. Multinational Corporations (MNCs)

  3. Global Corporations (GCs)

  4. Transnational Corporations (TNCs)

Chosen Option:- 2

Q-87 Which of the following sources of finance has an implicit cost of capital?

Options:-

  1. Equity share capital

  2. Retained earnings

  3. Debentures

  4. Preference share capital

Chosen Option:- 2

Q-88 Choose the correct code for the following statements being correct or incorrect.

Statement I: A well-chosen marketing channel must be aligned to company’s marketing strategy with respect to segmentation, targeting and positioning.

Statement II: Marketing channel are set of interdependent organizations participating in the process of making the product available for the use of consumption/

Code:-

Options:-

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

  2. Both the statements I and II are incorrect.

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

  4. Both the statements I and II are correct.

Chosen Option:- 4

Q-89 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 89
List 1 and List 2 Q 89

List I

List II

Claims

Company car, club membership, paid holidays, furnished house

Fringe benefits

Telephone/mobile allowance, internet allowance, medical allowance

Perquisites

Canteen, uniform, accident relief

Code:

Options:-

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

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

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

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

Chosen Option:- 1

Q-90 Choose the correct code for the following statements being correct or incorrect.

Statement I: If the value of , i.e, , of a distribution gives the value more than 3, its curve is platykurtic.

Statement II: In a moderately asymmetrical distribution, the standard deviation is 1.25 times of mean deviation.

Code:

Options:-

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

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

  3. Both the statements I and II are correct.

  4. Both the statements I and II are incorrect.

Chosen Option:- 4

Q-91 The theory suggesting that the patterns of international trade are determined by factor endowment rather than productivity was propounded by which one of the following?

Options:-

  1. Adam Smith

  2. Michael Porter

  3. David Ricardo

  4. Heckscher and Bertil Ohlin

Chosen Option:- 4

Q-92 Which one of the following initiatives is not the strategy for managing shortage of employees in an organization?

Options:-

  1. Offer incentives to postpone retirement

  2. Attempt to reduce turnover

  3. Employee training

  4. Hire temporary employees

Chosen Option:- 3

Q-93 Which of the following statements relating to the sampling theory are correct?

  1. The values of the statistical measures based on the sampled units are called values of statistic.

  2. In the simple random sampling technique, the element of the population and the unit of the sample are different.

  3. Snow-ball sampling technique is a probability based sampling technique.

  4. The ‘law of statistical regularity’ and the ‘law of large numbers’ are the main bases of the sample to become representative of the population.

Choose the correct answer from the code given below:

Code:

Options:-

  1. (ii) and (iii)

  2. (i) and (iv)

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

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

Chosen Option:- 3

Q-94 Which one among the following is the oldest form of organization?

Options:-

  1. Committee Organization

  2. Line Organization

  3. Project Organization

  4. Functional Organization

Chosen Option:- 4

Q-95 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): Purchase decisions are not based on how customers perceive prices but on the marketer’s stated price.

Reason (R): Customers may have a lower price threshold, below which prices signal inferior or unacceptable quality, and an upper price threshold where the product appears not worth the money.

Code:

Options:-

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

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

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

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

Chosen Option:- 1

Q-96 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): Consumers need to be given legal protection against certain trade practices and business methods.

Reason (R): Protection as per market forces and ‘Caveat Emptor’ is not enough as perfectly competitive market is an economist’s dream and consumer sovereignty is a myth.

Code:-

Options:-

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

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

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

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

Chosen Option:- 2

Q-97 Which one of the following is the main government agency responsible for development and monitoring international trade in India?

Options:-

  1. Department of Commerce

  2. Export Promotion Council

  3. Indian Institute of Foreign Trade

  4. Federation of Indian Export Organisations

Chosen Option:- 1

Q-98 Choose the correct code for the following statements being correct or incorrect.

Statement I: Punctuality and team spirit among employees of an organization has great contribution in enhancing profits of the business but they do not appear as an asset in the balance sheet.

Statement II: Financial statements do not reflect the correct financial position of a business.

Code:

Options:-

  1. Both the statements I and II are correct.

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

  3. Both the statements I and II are incorrect.

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

Chosen Option:- 2

Q-99 When RBI reduces CRR, it results into

Options:-

  1. Decrease in deposits

  2. Increase in lendable resources

  3. Decrease in lendable resources

  4. Increase in deposits

Chosen Option:- 2

Q-100 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 100
List 1 and List 2 Q 100

List I

List II

The economy was characterized by small regional suppliers who sold goods on a local basis

Mass marketing

Standardized, branded goods were sold at national level

Hyper-segmentation

Era of market differentiation based on demographic, socio-economic and life style factors

Segmentation

Technological advancements, especially in the area of digital communication, allow marketers to communicate with individual consumers or very small groups

Fragmentation

Code:

Options:-

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

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

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

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

Chosen Option:- 2

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