# UGC-NET/JRF EXAMINATION, 2018

## Solved Paper

Held On: 08-07-2018
Commerce
Paper : II
• Q1:

The Central Bank can significantly inﬂuence the savings, investments and consumer spending in the economy through which of the following policy?

1. (A) Fiscal Policy
2. (B) Monetary Policy
3. (C) Industrial Policy
4. (D) Foreign Exchange Policy
• Q2:

Which one of the following is not the characteristic of capitalism?

1. (A) Individuals and associations behave with economic motive of maximising their profit with least sacriﬁce or cost
2. (B) The country's major means of production are either owned by the Government or their use is controlled by the Government
3. (C) Producers, consumers and employees compete among themselves, as the resources and opportunities are limited
4. (D) Price, the invisible hand, plays a predominant role in the (low of the factors of production and consumption
• Q3:

Which of the following is not the salient feature of the industrial policy developments since 1991?

1. (A) The scope of the private sector has been enormously expanded
2. (B) Public sector has been with drawing partially or fully from several of the enterprises by divestment
3. (C) The Indian industry is increasingly exposed to foreign competition
4. (D) Monopoly or dominant position for the public sector in most of the industries and control of the commanding heights of the economy by the public sector
• Q4:

Which of the following does not form the part of the important information to be incorporated in the Memorandum of Association as specified in the Companies Act, 2013?

1. (A) The name of the company and the state in which it is situated
2. (B) The objects for which the company is proposed to be incorporated
3. (C) The rules regulations and bye-laws for the internal management of the company
4. (D) The liability of the members of the company, whether limited or unlimited,
• Q5:

Assertion (A) : The volume of imports tends to be very high when there is a conjecture of high rate of economic growth and a sharp fall in the relative price of imports and vice versa.
Reason (R) : High rate of growth, ceteris paribus, is associated with rise in imports and increase in the imports, ceteris paribus, is associated with a fall in the relative price of imports.

1. (A) Both (A) and (R) are correct and (R) is the right explanation of (A)
2. (B) Both (A) and (R) are correct but (R) is not the right explanation of (A)
3. (C) (A) is correct but (R) is not correct
4. (D) (R) is correct but (A) is not correct
• Q6:

Which of the following statements is not correct relating to consumerism?

1. (A) Consumerism is a manifestation of the failure of the business to guarantee and ensure consumer legitimate rights
2. (B) The govemment does not have any role in consumer protection as it is the part of business organisations alone
3. (C) The consumers should accept consumerism as a means of asserting and enjoying their rights
4. (D) Consumerism evolution is not a set-back for marketing but rather points to the next stage in the evolution of enlightened marketing
• Q7:

Which one of the following is not covered in the approach adopted by 'Niti Aayog'?

1. (A) Five year planning approach
2. (B) Three year action agenda
3. (C) Seven year strategy
4. (D) Fifteen year vision
• Q8:

Assertion(A): Personal transactions of the owners of the business are not recorded in the books.
Reasoning (R) : According to the business entity concept, each business enterprise is considered as an accounting unit seqarate from owners.

1. (A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
2. (B) Both (A) and (R) are correct but (R) is not the correct explanation of (A)
3. (C) (A) is correct but (R) is not correct
4. (D) (R) is wrong but (A) is correct
• Q9:

Which one of the following is not an example of 'financing activities' with reference to cash flow statement?

1. (A) Repayment of Bank Loan
2. (B) Interest on debentures/Dividend paid
3. (C) Cash proceeds from public deposits
4. (D) Sale of fixed assets
• Q10:

Which one of the following statements is true about estimated costs and standard costs?

1. (A) Standard costs are based on scientific analysis and engineering studies while estimated costs are based on historical basis
2. (B) Standard cost emphasis is on 'what cost will be' while estimated cost emphasis is on 'what cost should be'
3. (C) Standard costs are more frequently revised compared to estimated cost
4. (D) Estimated costs are more stable than standard costs
• Q11:

Which one of the following statements is not true?

1. (A) An expenditure intended to benefit current year is revenue expenditure
2. (B) Amount paid for acquiring goodwill is capital expenditure
3. (C) Wages paid for installation of a new machine is usually debited to wages account
4. (D) Revenue expenditure is not intended to benefit future period
• Q12:

X Lts. forfeited 20 shares of ₹ 10 each. ₹ 8 called up, on which John had paid application and allotment money of ₹ 5 per share, of these, 15 shares were reissued to Parker as fully paid up for ₹ 6 per share. What is the balance in the share Forfeiture Account after the relevant amount has been transferred to Capital Reserve Account?

1. (A) NIL
2. (B) ₹ 5
3. (C) ₹ 25
4. (D) ₹ 100
• Q13:

X and Y sharing profits in the ratio of 7:3, admit Z for 3/7 share in the new firm in which he takes 2/7 from X and 1/7 from Y. The new ratio of X, Y and Z will be:

1. (A) 7:3:3
2. (B) 4:2:3
3. (C) 14:6:15
4. (D) 29:11:30
• Q14:

Assertion (A) : A high operating, ratio indicates a favourable position.
Reasoning(R) : A high operating ratio leaves a high margin to meet non operating expenses.

1. (A) (A) and (R) both are correct and (R) correctly explains (A)
2. (B) (A) and (R) are correct but (R) does not explains (A)
3. (C) Both (A) and (R) are incorrect
4. (D) (A) is correct but (R) is incorrect
• Q15:

The following are the two statements regarding concept of profit. Indicate the correct code of the statements being correct or incorrect
Statements:
I. Accounting profit is a surplus of total revenue over and above all paid-out costs, including both manufacturing and overhead expenses.
II. Economic or pure profit is a residual left after all contractual costs have been met, including the transfer costs of management, insurable risks, depreciation and payments to shareholders sufficient to maintain investment at its current level.

1. (A) Both the statements are correct
2. (B) Both the statements are incorrect
3. (C) Statement (I) is correct while Statement (II) is incorrect
4. (D) Statement (I) is incorrect while Statement (II) correct
• Q16:

Which one of the following sets is incorrect to show the inter-relationships among price elasticity coefficient, change in price and change in total revenue?

1. (A) Price elasticity Coefficient - ZERO, Change in price - Increase, Decrease, Change in Total - Increase, Decrease
2. (B) Price elasticity Coefficient - Less than 1, Change in price - Increase, Decrease, Change in Total - Decrease, Increase
3. (C) Price elasticity Coefficient - Equal No. 1, Change in price - Increase, Decrease, Change in Total - No change, No change
4. (D) Price elasticity Coefficient - More than l, Change in price - Increase, Decrease, Change in Total - Decrease, Increase
• Q17:

Which one of the following is not the basic property of indifference curves?

1. (A) Indifference curves have a negative slope
2. (B) Indifference curves of imperfect substitutes are concave to the origin
3. (C) Indifference curves do not intersect nor are they tangent to one another
4. (D) Upper indifference curves indicate higher level of satisfaction
• Q18:

When labour is plotted on Z-axis and capital is plotted on Y-axis and an iso-quant is prepared, than which of the following statements is/are false?
1. Marginal rate of technical substitution of labour for captial is equal to the slope of the iso-quant.
2. Marginal rate of technical substitution of labour for capital is equal to change in the units of capital divided by the change in the units of labour.
3. Marginal rate of technical substitution of labour for capital is the ratio of marginal productivity of capital to marginal productivity of labour.

1. (A) 1 and 2 statements
2. (B) Only 3 statement
3. (C) Only 1 statement
4. (D) Only 2 statement
• Q19:

Match the items of List-II with the items of List-I and indicate the code of correct matching. The items relate to economies of scale/ scope.

 List I List II (a) Economies of  scale 1. arise with lower average costs of manufacturing a product when two complementary products are produced by a single firm (b) lnernal economies 2. Mean lowering of costs of production by producting in bulk (c) External economies 3. Arise when cost per unit depends on size of the firm (d) Economies of scope 4. Arise when cost per unit depends on the size of the industry, not the firm
1. (A) a-2, b-4, c-1, d-3
2. (B) a-1, b-2, c-3, d-4
3. (C) a-2, b-3, c-4, d-1
4. (D) a-4, b-3, c-2, d-1
• Q20:

A firm that produces highly substitute goods can adopt which one of the following pricing strategies?

1. (A) Transfer pricing
2. (B) Going Rate pricing
3. (C) Product bundling
4. (D) Full cost pricing
• Q21:

In a perfectly competitive market, a firm in the long run operates at the level of output where:

1. (A) AC = MC when MC is lowest
2. (B) MC = AR = MR when MC is lowest
3. (C) MR = MC
4. (D) AR=MR=AC=MC
• Q22:

Assignment of numberals to the objects tn represent their attributes is known as :

1. (A) Nominal data
2. (B) Ordinal data
3. (C) Interval data
4. (D) Ratio data
• Q23:

A graph of a cumulative frequency distribution is called :

1. (A) Frequency polygon
2. (B) Frequency curve
3. (C) Ogive
4. (D) Pie diagram
• Q24:

In the case of classification of data, the class having its upper limit is treated as the lower limit of its next class of called :

1. (A) Open ended class
2. (B) Close ended class
3. (C) Exclusive class
4. (D) Inclusive class
• Q25:

For a standard normal probability distribution, the mean ($\mu$) and the standard deviation ($\sigma$) are:

1. (A) $\mu = 0, \sigma = 1$
2. (B) $\mu = 16, \sigma = 4$
3. (C) $\mu = 25, \sigma = 5$
4. (D) $\mu = 100, \sigma = 10$
• Q26:

Match the items of List-II with the items of List-1 and select the code of correct matching

 List I List II (a) Standard error of mean 1. Ha : $\mu _1 \ne \mu _2$ (b) Base of point estimate of the mean of the population 2. Values based on all the observations of the population (c) Non-specific hypothesis 3. Mean of the sampling distribution of mean (d) Parameter value of descriptive statistics 4. Standard deviation of the sampling distribution of mean
1. (A) a-4, b-3, c-1, d-2
2. (B) a-1, b-2, c-3, d-4
3. (C) a-4, b-3, c-2, d-1
4. (D) a-3, b-4, c-1, d-2
• Q27:

There is a very high inverse relationship between measures of 'Overweight' and 'life expectancy'. Which one of the following value of the coefficient of correlation is consistent with the statement?

1. (A) $0\cdot80$
2. (B) $0\cdot20$
3. (C) $-0\cdot20$
4. (D) $-0\cdot80$
• Q28:

Match the items of List-II with the items of List-I and select the code of correct matching.

 List I List II (a) Chi-square Test 1. Testing the significance of the differences of the mean values among more than two sample groups (b) ANOVA(F-test) 2. Testing the goodness of fit of a distribution (c) Z-test 3. Testing the significance of the difference of the mean values between two large sized samples (d) t-test 4. Testing the significance of the difference of the mean values between two small sized samples when population standard deviation is not available
1. (A) a-1, b-2, c-3, d-4
2. (B) a-4, b-3, c-2, d-1
3. (C) a-1, b-2, c-4, d-3
4. (D) a-2, b-1, c-3, d-4
• Q29:

Match the items of List-II with List-I and choose the correct code:

 List I List II (a) Sales Executive 1. Top-middle Management (b) Branch Manager 2. Middle Management (c) Foremap 3. Lower Management (d) Production Manager 4. Operating Force
1. (A) a-4, b-2, c-3, d-1
2. (B) a-2, b-3, c-4, d-1
3. (C) a-3, b-4, c-2, d-1
4. (D) a-1, b-2, c-3, d-4
• Q30:

Select the correct code of the statements being correct or incorrect.
Statements:
I. It is a significant feature of human that he plans.
II. A plan is a trap to capture the future.

1. (A) Statement (I) is correct but (II) is incorrect
2. (B) Statement (II) is correct but (I) is incorrect
3. (C) Both the statements (I) and (II) are correct
4. (D) Both the statement (I) and (II) are incorrect
• Q31:

Assertion (A) : Management is a set of principles relating to its functions.
Reasoning (R) : Management is essential to run all types of organizations.

1. (A) (A) and (R) both are correct and (R) is the right explanation of (A)
2. (B) (A) and (R) both are correct but (R) is not the right explanation (A)
3. (C) Both (A) and (R) are incorrect
4. (D) (A) is correct but (R) is incorrect
• Q32:

Match the items of List-II with List-I and choose the correct code:

 List I (Critical Control Standards) List II (Critical Points) (a) Physical standards 1. Material cost per unit (b) Cost standards 2. Labour hours per unil of output (c) Revenue standards 3. Timing of production (d) Program standards 4. Average sales per customer
1. (A) a-2, b-1, c-4, d-3
2. (B) a-2, b-1, c-3, d-4
3. (C) a-1, b-2, c-4, d-3
4. (D) a-4, b-1, c-3, d-2
• Q33:

Which among the following is not a Correct Statement with regard to Corporate Govemance in India?

1. (A) Every company must appoint an individual or firm as auditor
2. (B) The independent directors must attend at least three meetings a year
3. (C) One or more women directors are recommended for certain classes of companies
4. (D) The maximum number of permissible directors cannot exceed 15 in a public limited company
• Q34:

The popular statement - "if all you have is a hammer, everything looks like a nail", is given by:

1. (A) A. H. Maslow (Hierarchy of Needs)
2. (B) Henry Eayol (Industrial and General Administration)
3. (C) F. W. Taylor (Scientific Management).
4. (D) Fredrick Herzberg (Hygiene Theory)
• Q35:

Functional Leadership Theory is associated with:

1. (A) Hackman and Walton and McGrath
2. (B) Bernard and Ordway Tead
3. (C) Koontz and O'Donnell
4. (D) Alford and Beatty
• Q36:

When two separate companies or two divisions within the same company agree to place both of their respective brands on a particular product or enterprise, this arrangement is termed as:

1. (A) Differential Branding
2. (B) Cobranding
3. (C) Dual Branding
4. (D) Both Cobranding and Dual Branding
• Q37:

The tangible goods for which a consumer wants to compare quality, price and perhaps style in several stores before making a purchase are called :

1. (A) Convenience Goods
2. (B) Shopping Goods
3. (C) Speciality Goods
4. (D) Unsought Goods
• Q38:

When a company treats each single customer as a separate segment, this is called :

1. (A) Niche Marketing
2. (B) Nano Marketing
3. (C) Single Marketing
4. (D) Micro Marketing
• Q39:

Under which of the following conditions, the level of consumer's involvement will not be high?

1. (A) The consumer considers the amount of money involved to be large
2. (B) The product is seen as having low potential for providing significant benefits
3. (C) The consumer lacks information about alternatives for satisfying the need
4. (D) The product has considerable social importance
• Q40:

Statements:
I. The mindset which is commonly associated with a long-ago era when the demand for goods generally exceeded the supply, and the primary focus in business was to effectively produce medium quantities of products; finding the customers was viewed as a relatively major function.
II. The firms with product orientation typically focus on the quality and quantity of offerings while assuming that customers will seek out and buy reasonably priced, well made products.
From the above statements indicate the correct code of being statements correct or incorrect.
The statements relate to concepts of marketing.

1. (A) Both the Statements (I) and (II) are not correct
2. (B) Both the statements (I) and (II) are correct
3. (C) Statement (I) is correct but statement (II) is not correct
4. (D) Statement (I) is not correct but statement (II) is correct
• Q41:

Match the items of List-II with List-I to identify the correct code which are related to legal forces affecting international marketers.

 List I List II (a) Tariff 1. A regulation specifying the proportion of a finished product's components and labour that must be provided by importing country (b) import Quota 2. Tax imposed on product entering a country and used to protect domestic producers and/or raise revenue (c) Local-content Law 3. A requirement that a product contain or exclude certain ingredients or that it be tested and certified as meeting certain restrictive standards (d) Local-operating Law 4. Limiting amount of a particular product that can be brought into a country, to protect domestic, industry or broadening access to its markets (e) Standards and Certification 4. A refusal to buy products from a particular company or country (f) Boycott 6. A constraint on how, when or where retailing can be conducted
1. (A) a-3, b-4, c-2, d-1, e-6, f-5
2. (B) a-6, b-2, c-1, d-4, e-3, f-5
3. (C) a-2, b-4, c-1, d-6, e-3, f-5
4. (D) a-4, b-6, c-1, d-2, e-3, f-5
• Q42:

Match the items of List-II with List-l which are related to personal selling process and identify the correct code:

 List I List II (a) Prospecting 1. Attention, Interest, Desire, Action (b) Preapproach 2. Identifying Profiles, leads, Records and Qualifying capability and willingness (c) Presentation 3. Reduce Dissonance, Build goodwill (d) Post sales services 4. Information, habits, preferences
1. (A) a-1, b-3, c-4, d-2
2. (B) a-3, b-4, c-2, d-1
3. (C) a-2, b-4, c-1, d-3
4. (D) a-4, b-3, c-2, d-1
• Q43:

Which of the following is not an approach to the Capital Structure?

1. (A) Gross Profit Approach
2. (B) Net Operating Income Approach
3. (C) Net Income Approach
4. (D) Modigliani and Miller Approach
• Q44:

Which one of the following methods of Capital Budgeting assumes that cash-inflows are reinvested at the project's rate of return?

1. (A) Net Present Value
2. (B) Accounting Rate of Return
3. (C) Internal Rate of Return
4. (D) Discounted Pay Back Period
• Q45:

Cost of Equity Share Capital is more than cost of Debt because :

1. (A) Equity shares are not easily saleable
2. (B) Equity shares do not provide the fixed dividend rate
3. (C) Generally the face value of equity shares is less than the face value of debentures
4. (D) Equity shares have high risk than debts
• Q46:

Negative Net Working Capital implies that :

1. (A) Long-term funds have been used for fixed assets
2. (B) Short-term funds have been used for fixed assets
3. (C) Long-tern funds have been used for current assets
4. (D) Short-term funds have been used for current assets
• Q47:

Which of the following is an implicit cost of increasing proportion of debt of a company?

1. (A) PE. Ratio of the company would increase
2. (B) Rate of return of the company would decrease
3. (C) Tax-shield would not be available on new debts
4. (D) Equity shareholders would demand higher return
• Q48:

Profitability Index of a Project is the ratio of present value of cash inflows to:

1. (A) Total cash inflows
2. (B) Total cash outflows
3. (C) Present value of cash outflows
4. (D) Initial cost minus Depreciation
• Q49:

Which one of the following statements is false?

1. (A) Effective dividend policy is an important tool to achieve the goal of wealth maximisation
2. (B) According to Walter, the optimal payout ratio for a growth firm is 100%
3. (C) MM model asserts that the value of the firm is not affected whether the firm pays dividend or not
4. (D) 'Bird-in-the-hand theory' in reference to dividend decision has been developed by Myron Gordon
• Q50:

Which one of the following statements defines the correct meaning of the term 'boundary spanning'?

1. (A) It refers to an obligation of an individual, firm or institution to account for its activities and accept responsibility for them
2. (B) It refers to the process that helps the organization and its employees to link with their external environment through specific activities/functions
3. (C) It refers to the science of morals, principles and rules of conduct
4. (D) It refers to multiculturism management
• Q51:

The VRIO framework, used in HR function in today's era, refers to four criteria. Identify the correct code which stands as correct explanation to VRIO as proposed by Barney.

1. (A) Valence → Recruiting → Industrial relations → Opportunities
2. (B) Vision → Rewards → Improvements → Options
3. (C) Value → Rarity → lmitabilily → Oganization
4. (D) Versatile → Resource → Information → Outsourcing
• Q52:

Assertion (A) : Induction is an informal information sharing session on miscellaneous issues in an organization.
Reasoning (R) : The rationale of induction is to ensure effective integration of staff into or across the organization for their mutual benefit.

1. (A) Assertion (A) and Reasoning (R) both are correct and (R) is correct explanation of (A)
2. (B) Assertion (A) and Reasoning (R) both are correct but (R) is not the correct explanation of (A)
3. (C) Assertion (A) is correct statement but Reasoning (R) is an incorrect statement
4. (D) Assertion (A) is an incorrect statement but Reasoning (R) is a correct statement
• Q53:

Match the items of List-II with the items List-I pertaining to the ranking methods used in performance management systems; and select the code of correct matching.

 List I (Ranking methods) List-II (Methodology) (a) Simple ranking 1. Based on overall performance (b) Alternation ranking 2. End up with predetermined number of people in each group (c) Paired comparison 3. Based on particular trait only for quantily / quality of work (d) Forced distribution 4. Based on a trait or a set of trait and avoids central tendency
1. (A) a-2, b-3, c-4, d-1
2. (B) a-1, b-4, c-3, d-2
3. (C) a-4, b-2, c-1, d-3
4. (D) a-3, b-1, c-2, d-4
• Q54:

Assertion (A) : Compensation has two vital domains economic concept and psychological concept.
Reasoning (R) : Compensation basically represents ann employment contract.

1. (A) (A) is correct and (R) is right explanation of (A)
2. (B) (A) is correct but (R) is not the right explanation of (A)
3. (C) (A) is correct but (R) is incorrect
4. (D) (A) is incorrect but (R) is correct
• Q55:

Which of the following is not the primary objective of industrial relations and labour laws?

1. (A) Maintaining social equity
2. (B) Providing credit facilities to industries
3. (C) International uniformity
4. (D) Promoting economic growth