Vidhyabhyas PAPER 3_COMMERCE_DEC 2013


#1. The present regime of subsidies can be improved by focussing on (i) Reducing the overall scale of subsidies. (ii) Making subsidies as transparent as possible. (iii) Giving a specific amount to the Member of Parliament for subsidies. (iv) Setting clear limits on duration of any new subsidy scheme. (v) Eliminating system of periodic review of subsidies (vi) Using subsidies for well-defined economic objectives. Codes:

#2. Which of the following is not regulated by The Competition Act, 2002?

#3. The freedom of private enterprise is the greatest in the free market economy. This is characterized by which of the following assumptions? (i) The factors of production (labour, land, capital) are privately owned and production occurs at the initiative of the private enterprise. (ii) Income is received in monetary form by the sale of services of the factors of production and from the profits of the private enterprise. (iii) Members of the free market economy have freedom of choice in so far as consumption, occupation, savings and investments are concerned. (iv) The free market economy is not planned, controlled or regulated by the government. (v) The free market economy is prone to corrupt practices. Codes:

#4. The important responsibilities of a business to the customers are (i) To ensure family welfare of the customers. (ii) To understand customer needs and to take the necessary measures to satisfy these needs. (iii) To ensure health condition of the customers. (iv) To ensure that the product supplied has no adverse effect on the customer. (v) To provide an opportunity for being heard and to redress genuine grievances. Codes:

#5. The rationale of expanding role of the public sector stems mainly from which of the following factors? (i) The failure of the private sector in certain crucial areas (ii) The exploitation of the society by the private sector (iii) The revenue need of the Central Government (iv) The demand of economic justice (v) The need for accelerating the pace of economic growth Codes:

#6. Which of the following factors may lead to a sick industrial unit? (i) Shortage of funds and faulty financial management (ii) Investment by the FIIs in Indian industries (iii) Unauthorized FDI in Indian industries (iv) Lack of experience on the part of promoters (v) Technological factors including obsolete or improper technology Codes:

#7. Indicate what is not correct in respect of the Consumer Protection Act, 1986.

#8. If bonus shares are issued out of pre-acquisition profit, it will have

#9. The present value of the future contributions of employees is one of the methods of

#10. A standard which can be attained under the most favourable working conditions is called

#11. Which of the following ratios are taken into consideration by a banker before sanctioning the loan?

#12. Assertion (A): Dividend paid out of pre-acquisition profit by the subsidiary company to the holding company is deducted from the cost of investment. Reason (R): Dividend paid out of pre-acquisition profit by the subsidiary company should be treated as a return of capital to the holding company. Which one of the following is correct?

#13. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R): Assertion (A): Increasing the value of closing inventory increases profit. Reason (R): Increasing the value of closing inventory reduces cost of goods sold. In the context of above two statements, which of the following is correct? Codes:

#14. A measure of the responsiveness of quantity demanded to changes in the price of a related good is known as

#15. If the total cost is Rs. 260 and the total variable cost is Rs. 60, what will be total fixed cost if output is (a) 100 units and (b) 200 units?

#16. Optimal input combination to minimize the cost for a given output will be at the point where:

#17. What kinds of actions can be taken to put the rivals at a disadvantageous position under oligopoly market?

#18. There is no exceptions to the law of demand in the case of

#19. What is the degree of elasticity of demand in case the demand is represented by a straight line parallel to the x-axis?

#20. If a chi-square test is to be performed on a contingency table with 3 rows and 4 columns, how many degrees of freedom should be used?

#21. Assertion (A): If regression coefficient of X on Y is greater than one, regression coefficient of Y on X must be less than one. Reason (R): The geometric mean between two regression coefficients is the co-efficient of correlation. On the basis of the above, choose the appropriate answer:

#22. If the sum of squares of deviations within samples is 140 with 12 degrees of freedom and the sum of squares of deviations between samples is 190 with 2 degrees of freedom, the test statistic will be

#23. The regression equation of profits (X) on sales (Y) of a firm is given as: 3Y – 5X + 110 = 0. If the sales of the firm is Rs. 44,000, the profit will be

#24. Cricketer ‘A’ scores on an average 40 runs with a standard deviation of 5. Scores of players ‘B’ and ‘C’, on an average, are 75 and 90 with standard deviations 10 and 18 respectively. Arrange the players in the descending order of consistency:

#25. Among the following, choose the most suitable ‘test’ that can be applied to examine the influence of one factor on different groups:

#26. A machine produced 20 defective articles in a batch of 400. After overhauling, it produced 10% defectives in a batch of 300. Which test of hypothesis can be applied to the above situation to examine whether the machine has improved?

#27. Strategies and policies

#28. According to Vroom’s Expectancy Theory of Motivation,

#29. In the managerial grid, the managers who have little or no concern for production but are concerned only for people are known as what type of managers?

#30. According to the Boston Consulting group, a business, which has a strong market share in a low growth industry is referred to as a

#31. Which is not one of the stages in the consumer buying-decision process?

#32. At which stage of product-life-cycle are the pricing decisions most complex?

#33. Which one is not an element of market logistics?

#34. Under which legislation, the manufacturers and distributors are required to declare Maximum Retail Price (MRP) on packaged commodities?

#35. In modern marketing, which of the following functions of a distribution middleman is gaining maximum importance?

#36. Which method of setting the advertising budget of a company is considered to be the most scientific?

#37. Mutually exclusive projects can be more accurately ranked as per

#38. Which one of the following does not constitute a Standalone Risk Analysis?

#39. Financial leverage in a firm is positively affected by

#40. Dividend irrelevance hypothesis is implied in the

#41. Which one of the following does not serve the main objective of performance appraisal?

#42. The major provisions for employees’ health and safety are contained in

#43. PIN in banking transaction is known as

#44. Reserve Bank of India was nationalized on

#45. Given that : Fair rent of a let out house property is ₹ 75,000. Its Municipal value is ₹ 60,000, standard rent is ₹ 72,000 and actual rent received is ₹ 63,000. What is the Gross Annual Value of this house property?

#46. Which of the following deductions will not come under Sec. 80 of the Income Tax Act?

#47. X purchased a land in the P.Y. 1997-98 for ₹ 50,000. This land was sold by him during the P.Y. 2009-10 for ₹ 8,00,000. The fair market value of this land on 1-4-81 was ₹ 1,20,000. If the Cost Inflation Index for the A.Y. 2010-11 is 632, his capital gain for the A.Y. 2010-11 will be

#48. Any amount of money received in excess of ₹ 50,000 without consideration is fully taxable in the hands of