CG SET Commerce 2019 Solved - Master Multiple Choice Questions in Commerce and Management

1.

Which of the following is not a criterion laid down by RBI for NPA?

(A)

Interest on loan taken to purchase personal assets remaining overdue for 60 days.

(B)

Interest on loan remaining overdue for 90 days.

(C)

Interest on loan taken for long duration agricultural crop remaining unpaid for one crop season.

(D)

Interest on loan taken for short-duration agricultural crop remaining unpaid for two crop seasons.

2.

Cost Audit comprises following three steps:

(A)

(A) (i) Identify wastage (ii) Verification (iii) Reformation of cost plans

(B)

(B) (i) Cost Planning (ii) Cost Analysis (iii) Reporting

(C)

(C) (i) Review (ii) Verification (iii) Reporting

(D)

(D) (i) Cost Determination (ii) Cost Analysis (iii) Reporting

3.

The difference between 'Rule of Communication of Acceptance' as under English Law and Indian Law is:

(A)

In the position of offerer

(B)

In the position of an acceptor

(C)

Both in the position of offerer and acceptor

(D)

Neither of them

4.

Which of the following is not included in Job description?

(A)

Working Conditions

(B)

Duties

(C)

Work Experience

(D)

Hazards

5.

Which of the following type of tests measure practical ability on a specific job during the selection process?

(A)

Personality Tests

(B)

Knowledge Tests

(C)

Work Sample Tests

(D)

Intelligence Tests

6.

The extent of closeness among inventory turnover ratio, debtors turnover ratio, and cash turnover ratio of a firm can be assessed by using:

(A)

Spearman's rank correlation coefficient

(B)

Yule's coefficient of colligation

(C)

Kendall's coefficient of concordance

(D)

Pearson's simple correlation coefficient

7.

Consider the following statements:

(a) Securities are backed by long term loans with high interest rates.

(b) Securities are backed by short term loans with low interest rates.

(c) Securities are backed by accounts receivable.

(d) Securities are backed by royalty payments from contracts.

Which of the statement/statements given above is/are correct?

(A)

Only (a)

(B)

(a) and (b)

(C)

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

(D)

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

8.

Marginal utility refers to change in the total utility obtained from the ______ of an additional unit of a commodity. (Fill in the blank with correct word)

(A)

Purchase

(B)

Creation

(C)

Production

(D)

Consumption

9.

In effective target market, the marketers should focus on:

(A)

Market targeting

(B)

Market positioning

(C)

Market segmentation

(D)

All of these

10.

Prescribed E-return form for assessee whose income from salary and interest only:

(A)

ITR - 1

(B)

ITR - 2

(C)

ITR - 3

(D)

ITR - 4

11.

In case of dissolution of partnership firm, debit side total of the partner's Capital Account is more than its credit side. The treatment is:

(A)

That partner brings balancing figure in cash.

(B)

His account is closed with balancing figure.

(C)

Other partners pay him the balancing figure.

(D)

Firm pays balancing figure to that partner.

12.

Identify the key constituents for performance marketing of Holistic marketing dimensions from the following:

(a) Customers

(b) Brand and customer equity

(c) Employees

(d) Ethics

(e) Environment

(f) Sales revenue

(g) Financial community

(A)

(a) (c) (f) (g)

(B)

(b) (d) (e)

(C)

(a) (b) (c) (d)

(D)

(c) (e) (f) (g)

13.

(A)

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

(B)

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

(C)

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

(D)

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

14.

Which of the following statements is not true in the context of Average Cost and Marginal Cost curves?

(A)

Both the Average Cost curve and Marginal Cost curve are U-shaped.

(B)

When Average Cost falls, Marginal Cost is more than Average Cost.

(C)

Fall in Marginal Cost is related to one unit of output while in case of Average Cost, fall is spread over all the units.

(D)

If Average Cost is constant, Marginal Cost must be constant.

15.

Price at which stocks are sold to investors by the investment banks is called:

(A)

Spread

(B)

Gross proceeds

(C)

Net proceeds

(D)

Earnings before tax

16.

Different countries and cultures have taken different attitudes to the concept of ecological responsibility resulting thereby in:

(A)

Transfer of production from developed countries to the developing countries

(B)

Resistance to use green products

(C)

Improved corporate social responsibilities

(D)

Shutting down of production facilities

17.

According to Gordon's dividend model, a firm is said to be a declining firm if:

(A)

K > r

(B)

K < r

(C)

K = r

(D)

K = 1/r

18.

Memorandum of Association is defined under which Section of Company Act 2013?

(A)

Section 2(55)

(B)

Section 2(56)

(C)

Section 2(57)

(D)

Section 2(58)

19.

Out of the following which one is not the technique of price level changes Accounting?

(A)

Current Cost Accounting (C.C.A.) technique

(B)

Current Purchasing Power (C.P.P.) accounting technique

(C)

Current Price Detonation (C.P.D.) accounting technique

(D)

Replacement Cost Accounting (R.C.A.) technique

20.

Types of non-tariff barriers are:

(a) Government Procurement

(b) International Cartels

(c) Technical Barriers

(d) Specific Tariff

(e) Transit Duty

Which one of the following is correct?

(A)

(a) (b) (c)

(B)

(b) (c) (e)

(C)

(c) (d) (e)

(D)

(a) (d) (e)

21.

(A)

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

(B)

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

(C)

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

(D)

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

22.

(A)

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

(B)

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

(C)

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

(D)

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

23.

If P/V ratio is 40% and marginal cost of a product is Rs. 30 the selling price of the product is :

(A)

Rs. 70

(B)

Rs. 80

(C)

Rs. 50

(D)

Rs. 72

24.

The authority to issue various policies in which of the following does not match :

(A)

Credit policy - RBI monetary policy

(B)

Fiscal Policy - Ministry of Commerce, Government of India

(C)

Foreign Trade Policy - Ministry of Finance, Government of India

(D)

All of the Above

25.

The _____________ is an annual record of international receipts and payments of a country during a year.

(Select the appropriate alternative to fill in the blank)

(A)

Balance of Payments

(B)

Balance of Trade

(C)

Capital Account

(D)

Annual Budget

26.

Span of control refers to :

(A)

the number of subordinates an executive can effectively control

(B)

the number of layers in an organization hierarchy

(C)

the number of divisions that the organization can effectively form

(D)

None of these

27.

In accounting, the policy "Anticipate no profit and provide for all possible losses" is a:

(A)

Convention of materiality

(B)

Convention of consistency

(C)

Convention of conservatism

(D)

Convention of disclosure

28.

Henri Fayol has suggested ______ number of management principles.

(A)

12

(B)

14

(C)

16

(D)

None of these

29.

The surplus of sources of Funds in Fund Flow statement state:

(A)

Borrowed Funds

(B)

Increase in Fixed Funds

(C)

Increase in Fund Payments

(D)

Increase in Working Capital

30.

The main Act that regulate the insurance business are:

(A)

Insurance Act and IRDA Act

(B)

Life Insurance Act and IRDA Act

(C)

Insurance Act, IRDA Act, and Indian Contract Act

(D)

General Insurance Act, IRDA Act, and Indian Contract Act

31.

Which one of the following is not a theory of International trade?

(A)

Ricardian theory of comparative cost

(B)

Theory of Reciprocal demand (J.S. Mill)

(C)

Opportunity cost theory (Haberler)

(D)

None of these

32.

Sections related to Tax deducted at source are:

(A)

190 to 196

(B)

190 to 194

(C)

192 to 196

(D)

191 to 196

33.

Bonds that are denominated and pay interest in one currency and are redeemable in another currency are termed as:

(A)

Yankee Bonds

(B)

ECU Bonds

(C)

Dual Currency Bonds

(D)

Double Benefit Bonds

34.

Which of the following is the minimum number of persons required for a partnership?

(A)

6

(B)

8

(C)

2

(D)

None of above

35.

(A)

A

(B)

B

(C)

C

(D)

D

36.

The sensitivity of return on capital employed to changes in the level of current assets is called:

(A)

Operating leverage

(B)

Financial leverage

(C)

Working capital leverage

(D)

Current assets leverage

37.

In the early stage of product life cycle the highly competitive industries follow:

38.

Statement - I: Minor income is exempt to the extent of ₹1500. Statement - II: Income of ₹1500 of a minor child shall not be included in the income of his mother or father.

(A)

Both statements are correct.

(B)

Both statements are incorrect.

(C)

Statement - I is correct while Statement - II is incorrect.

(D)

Statement - I is incorrect while Statement - II is correct.

39.

In a test the probability of type I error is 0.01 and the probability of type II error is 0.05. Then the power of the test is:

(A)

0.01

(B)

0.05

(C)

0.99

(D)

0.95

40.

From the following activities find out the functions performed by a foreign exchange market: (a) Provision of credit, (b) Issue of foreign currency, (c) Provision of hedging facilities, (d) An OTC market

(A)

(a) (b) and (c)

(B)

(a) (b) and (d)

(C)

(a) (c) and (d)

(D)

(b) (c) and (d)

41.

In which sequence the following steps are followed to ascertain median for continuous series?

(a) Frequencies are made cumulative, (b) The median is located in cumulative frequency column and it lies in that class, (c) The median is known by finding out N/2th item, (d) Median is calculated by applying the formula

(A)

(a) (b) (c) (d)

(B)

(a) (c) (b) (d)

(C)

(c) (b) (a) (d)

(D)

(d) (c) (b) (a)

42.

Assertion (A): Flexible exchange rate involves deflationary effect. Reason (R): Flexible exchange rate promotes international trade.

(A)

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

(B)

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

(C)

(A) is true but (R) is false.

(D)

(A) is false but (R) is true.

43.

Which of the following statement is true?

(A)

Goodwill of a business is not deemed to be a capital asset.

(B)

Contribution to a political party is allowed expenses.

(C)

Annual value of a house every year remains the same.

(D)

Deduction for entertainment allowance is availed by govt. servant.

44.

(A)

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

(B)

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

(C)

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

(D)

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

45.

'Esprit de corps' as a principle of management implies:

(A)

Coordination

(B)

Formal order

(C)

Union of strength

(D)

Goal direction

46.

Assuming the normal distribution, suppose that a 95% confidence interval for mean is (50, 60). Which of the following could possibly be a 99% confidence interval?

(A)

(48, 58)

(B)

(48, 62)

(C)

(52, 62)

(D)

(52, 58)

47.

Which of the following does not cause disequilibrium in Balance of Payment?

(A)

Lack of import substitution

(B)

Payment of debts

(C)

Lack of exports

(D)

Unsatisfactory use of human resource

48.

Statement - I: Advance tax is calculated on previous year income. Statement - II: If estimated tax payable after T.D.S. does not exceed ₹10,000 then advance tax will not be paid. Statement - III: Second instalment of advance tax payable in case of assessee falls due on 15th September.

(A)

Statement - I and II are correct but Statement - III is not correct.

(B)

Statement - II and III are correct but Statement - I is not correct.

(C)

Statement - I and III are correct but Statement - II is not correct.

(D)

All the statements are correct.

49.

Which of the following is not a non-tariff barrier of foreign trade?

(A)

Export quotas

(B)

Product valuation

(C)

Protective tariffs

(D)

Multiple-exchange rates

50.

The Theory of comparative costs was first propounded by:

(A)

David Ricardo

(B)

Ohlin

(C)

Robinson

(D)

Alfred Marshall

51.

Which new Indian Accounting Standard provides standards for (i) Intangible assets and (ii) Earning per share?

(A)

AS 38 and 33

(B)

AS 28 and 40

(C)

AS 38 and 101

(D)

AS 40 and 101

52.

Assertion (A): Devaluation in general is resorted to increase the exports. Reason (R): It makes exports cheaper.

(A)

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

(B)

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

(C)

(A) is true but (R) is false.

(D)

(A) is false but (R) is true.

53.

Assertion (A): Correlation coefficient varies between +1 and -1. Reason (R): Regression coefficients range between +1 and -1.

(A)

(A) is correct but (R) is wrong.

(B)

(A) is wrong but (R) is correct.

(C)

Both (A) and (R) are correct.

(D)

Both (A) and (R) are wrong.

54.

Which of the following is not a Marketable Asset?

(A)

Share

(B)

Government Securities

(C)

Bonds

(D)

Provident Fund

55.

In a company, if current liabilities are ₹300,000 and current ratio is 3:1 and quick ratio is 1:1, then value of stock will be:

(A)

₹80,000

(B)

₹60,000

(C)

₹50,000

(D)

₹90,000

56.

Which of the following is not an international financial institution?

(A)

IBRD

(B)

IMF

(C)

IDBI

(D)

IFC

57.

If a partner contributes in a partnership business, then his status in firm is:

(A)

Partner

(B)

Employee

(C)

Creditor

(D)

None of above

CG SET Commerce 2019 Solved Practice MCQ Question and Answer

CG SET Commerce 2019 Solved Practice MCQ Question and Answer

CG SET Commerce 2019 Solved Practice MCQ Question and Answer

CG SET Commerce 2019 Solved Practice MCQ Question and Answer

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