Previous Year Paper

DSSSB PGT Commerce (Male) Official Paper (Held On: 28 Jun, 2021 Shift 1) (Previous Year Paper)

Held in 2021

300 questions180 minutes
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Mental Ability (20 questions)

Question 1

A river flows north to south and on the way turns left and goes in a quarter-circle round a hillock and then turns right at a right angle. In which direction in the river finally flowing?

  1. AOption (a)

    East

  2. BOption (b)

    South

  3. COption (c)

    North

  4. DOption (d)

    West

View answer & explanation

Correct answer

Answer: (d)D.

West

Why this answer is correct

As per the given information;

Hence, finally, the river is flowing in the West direction.

Question 2

How many squares are there in the given figure?

  1. AOption (a)

    32

  2. BOption (b)

    31

  3. COption (c)

    29

  4. DOption (d)

    30

View answer & explanation

Correct answer

Answer: (d)D.

30

Why this answer is correct

From the figure ABCD, we can see that there are in total 30 squares.

Hence, the correct answer is "30".

Shortcut Trick

It's clear from the analysis above that the solution in the case of n x n is the sum of the squares from n2 to 12 that is to say n2 + (n-1)2 + (n-2)2 ... ... 22 + 12 Mathematically that is written as follows:  

For example:

For 4 × 4 matrix

Number of squares: 42 + 32 + 22 + 12 = 16 + 9 + 4 + 1 = 30

Question 3

In the question below, there are two statements followed by four conclusions given in

the options. You have to take the given statements to be true even if they seem to be at variance with commonly known facts and then decide which of the given conclusion logically follow(s) from the given statements.

Statements:

Some numbers are digits.

All digits are alphabets.

  1. AOption (a)

    Some digits are not alphabets

  2. BOption (b)

    Some digits are alphabets

  3. COption (c)

    Some alphabets are not numbers

  4. DOption (d)

    All numbers are alphabets

View answer & explanation

Correct answer

Answer: (b)B.

Some digits are alphabets

Why this answer is correct

The least possible Venn diagram for the given statements is as below,

Now; checking each option one by one;

1) Some digits are not alphabets → False (As All digits are alphabet. So, Some not case are not true)

2) Some digits are alphabets → True (As All digits are alphabets. So, some digits are alphabets are definitely true)

3) Some alphabets are not numbers → False (As Some numbers are digits and All digits are alphabets. So, we can't say some alphabets are not numbers)

4) All numbers are alphabets → False (As Some numbers are digits and All digits are alphabets. So, we can't say about All)

Hence, option (2) is the correct answer.

Additional Information

.’Some’ is a subset of ‘All’. If in statements it is given that ‘All A are B’ then the conclusion ‘Some A are B’ would always be True.

Question 4

In the question below, there are two statements followed by two conclusions. You have to take the given statements to be true even if they seem to be at variance with commonly known facts and then decide which of the given conclusion logically follow(s) from the given statements.

Statements :

All horses are buffaloes.

All buffaloes are grass.

Conclusions :

I. All horses are grass.

II. All grass are horses.

  1. AOption (a)

    If neither conclusion I nor II follows

  2. BOption (b)

    If only conclusion I follows

  3. COption (c)

    If either conclusion I or II follows

  4. DOption (d)

    If only conclusion II follows

View answer & explanation

Correct answer

Answer: (b)B.

If only conclusion I follows

Why this answer is correct

The least possible Venn diagram for the given statements is as below,

Conclusions:

  1. All horses are grass → True (It is clear that all the horses are buffaloes and all the buffaloes are grass so all horses are grass is a definite conclusion).
  2. All grass are horses → False (It is possible but not definite).

Hence, the correct answer is "If only conclusion I follows".

Additional Information

Suppose for an Example: All A are B.

If we go from In to Out means from A to B then cases with All and some will be true like All A are B and Some A are B.

But if we go Out to In then only cases with Some will be true and All will be can't say like Some B are A will be true but All B are A will be can't say.

Question 5

From the given responses, find the missing letter cluster in the series.

MNPS, JPLU, GRHW, DTDY, ?

  1. AOption (a)

    QCQR

  2. BOption (b)

    ADGM

  3. COption (c)

    AVZA

  4. DOption (d)

    PQWZ

View answer & explanation

Correct answer

Answer: (c)C.

AVZA

Why this answer is correct

The pattern followed is:

Hence, the correct answer is "AVZA".

Question 6

Find the odd figure among the following figures.

  1. AOption (a)

  2. BOption (b)

  3. COption (c)

  4. DOption (d)

View answer & explanation

Correct answer

Answer: (d)D.

Why this answer is correct

LOGIC: 

Upper figure sides = Bottom Figure side + 1

1) In Option 1:

Upper Figure = Pentagon

Side of Pentagon = 5

Bottom Figure = Square

Side of Square = 4

2) In Option 2:

Upper Figure = Hexagon

Side of Hexagon = 6

Bottom Figure = Pentagon

Side of Pentagon = 5

3) In Option 3:

Upper Figure = Square

Side of Square = 4

Bottom Figure = Triangle

Side of Triangle = 3

4) In option 4:

Upper Figure = Circle

Bottom Figure = Triangle

Side of Triangle = 3

Hence, option (4) is the correct answer.

 

Side of polygons and their name:

PolygonNumber of SidesFigure
Triangle3
Square4
Pentagon5
Hexagon6
Heptagon7
Octagon8
Nonagon9
Decagon10

Question 7

From the given responses, find the missing alphanumeric cluster in the series.

D1E, E3G, F5I, G7K, ?

  1. AOption (a)

    H9J

  2. BOption (b)

    J11C

  3. COption (c)

    H11N

  4. DOption (d)

    H9M

View answer & explanation

Correct answer

Answer: (d)D.

H9M

Why this answer is correct

The pattern followed is:

Hence, the correct answer is "H9M".

Question 8

In a certain code language, 'CUTE' is coded as '321205'. How will 'HOPE' be coded as in that language?

  1. AOption (a)

    612385

  2. BOption (b)

    815165

  3. COption (c)

    914265

  4. DOption (d)

    816164

View answer & explanation

Correct answer

Answer: (b)B.

815165

Why this answer is correct

The pattern followed here is:

The positional value of the letter is given as their code.

Given code:

 'CUTE' is coded as '321205'

LetterGiven code
C3
U21
T20
E5

 

Similarly,

LetterGiven code
H8
O15
P16
E5

 

Thus ‘HOPE’ is written as ‘815165’

Hence, the correct answer is "815165".

Question 9

Select the option in which the words have the same relationship as between the words in the pair of words given below.

Dog : Barking

  1. AOption (a)

    Bear : Buzz

  2. BOption (b)

    Bat : Wail

  3. COption (c)

    Camel : Wheezing

  4. DOption (d)

    Grasshopper : Chirp

View answer & explanation

Correct answer

Answer: (d)D.

Grasshopper : Chirp

Why this answer is correct

Bark is a sound most commonly produced by dogs.

Similarly;

Grasshoppers make a chirping sound by running their hind legs against their wings. 

Hence, "Grasshopper : Chirp" is the correct answer. 

Additional Information

  • Sound of bear:- Roar, growl
  • Sound of the bat:- Squeak
  • Sound of camel:- Grunt

Question 10

If "-" shows "+", "+" shows "×", "×" shows "÷", "÷" shows "-", then 8 - 3 + 12 - 7 ÷ 8 is equal to:  

  1. AOption (a)

    34

  2. BOption (b)

    46

  3. COption (c)

    38

  4. DOption (d)

    43

View answer & explanation

Correct answer

Answer: (d)D.

43

Why this answer is correct

Decoding the giving information,

-+×÷
Means
+×÷-

Given expression,

8 - 3 + 12 - 7 ÷ 8

After changing the sign,

8 + 3 × 12 + 7 - 8

Using the BODMAS rule,

8 + 3 × 12 + 7 - 8

8 + 36 + 7 - 8

51 - 8

43.

Hence, the correct answer is "43".

Question 11

P is daughter of Q, while Q and R are sisters of each other. S is mother of R. If M is son of S, then which of the following statements is correct?

  1. AOption (a)

    S is brother of Q

  2. BOption (b)

    M is cousin of Q

  3. COption (c)

    M is maternal uncle of P

  4. DOption (d)

    Q is brother of M

View answer & explanation

Correct answer

Answer: (c)C.

M is maternal uncle of P

Why this answer is correct

The family chart is as follows:

i) P is daughter of Q, while Q and R are sisters of each other.

ii) S is mother of R.

iii) If M is son of S

Drawing the family tree as per the given information:

Option 1: S is brother of Q

This is incorrect as S is the mother of the Q.

Option 2: M is cousin of Q

This is incorrect as M and Q are brother and sister.

Option 3: M is maternal uncle of P

This is correct as M is the maternal uncle of P.

Option 4: Q is brother of M

This is incorrect as Q is the sister of M.

Hence, the correct answer is "Option 3".

Question 12

There are five friends-Satish, Kishore, Mohan, Anil, and Rajesh. Mohan is the tallest. Satish is shorter than Kishore but taller than Rajesh. Anil is a little shorter than Kishore but a little taller than Satish. Who is taller than Rajesh but shorter than Anil?

  1. AOption (a)

    Rajesh

  2. BOption (b)

    Satish

  3. COption (c)

    Anil

  4. DOption (d)

    Kishore

View answer & explanation

Correct answer

Answer: (b)B.

Satish

Why this answer is correct

Five friends: Satish, Kishore, Mohan, Anil and Rajesh.

  1. Satish is shorter than Kishore but taller than Rajesh.

Kishore > Satish > Rajesh

  1. Anil is a little shorter than Kishore but a little taller than Satish.

Kishore > Anil > Satish

3) Mohan is the tallest.

Combining all these statements;

Mohan > Kishore > Anil > Satish > Rajesh

So, Satish is taller than Rajesh but shorter than Anil.

Hence, "Satish" is the correct answer.

Question 13

Which answer figure will complete the pattern in the question figure?

  1. AOption (a)

  2. BOption (b)

  3. COption (c)

  4. DOption (d)

View answer & explanation

Correct answer

Answer: (c)C.

Why this answer is correct

The logic followed is:

Thus option 3 completes the given figure.

Hence, the correct answer is "Option 3".

Question 14

If each circle represents a class of objects/ideas written below, then find out the answer figure which illustrates best the relationship among.

“Alcohol, Water, Things that can evaporate”

  1. AOption (a)

  2. BOption (b)

  3. COption (c)

  4. DOption (d)

View answer & explanation

Correct answer

Answer: (d)D.

Why this answer is correct

The correct Venn diagram representation is:

Both Alcohol and Water are evaporate.

Hence, option (4) is the correct answer.

Question 15

Identify the diagram that best represents the relationship among:

Grandfather, father, brother

  1. AOption (a)

  2. BOption (b)

  3. COption (c)

  4. DOption (d)

View answer & explanation

Correct answer

Answer: (b)B.

Why this answer is correct

The correct Venn diagram representation is:

All grandfathers are fathers but vice versa is not true.

Some brothers are father and grandfather

Hence, option (2) is the correct answer.

Question 16

Three different positions of the same dice are shown. What will be the number on the

face opposite to the side having '1'?

  1. AOption (a)

    2

  2. BOption (b)

    6

  3. COption (c)

    4

  4. DOption (d)

    3

View answer & explanation

Correct answer

Answer: (c)C.

4

Why this answer is correct

Taking dice positions (1) and (2) 5 as common,

Moving clockwise from the Common number 5,

Pair of opposite numbers:

1 - 4

2 - 5

3 - 6

So, the opposite number to 1 is 4.

Hence, the correct answer is "4".

Question 17

Select the related letter cluster from the given alternatives.

MPTV ∶ PMWS ∶∶ KOSU ∶ ?

  1. AOption (a)

    NLVR

  2. BOption (b)

    PUMS

  3. COption (c)

    VRNM

  4. DOption (d)

    OKMR

View answer & explanation

Correct answer

Answer: (a)A.

NLVR

Why this answer is correct

The pattern followed is:

Similarly,

Hence, the correct answer is "NLVR".

Question 18

Find the missing number in the series given below.

4, 9, 20, 43, 90, ?

  1. AOption (a)

    182

  2. BOption (b)

    180

  3. COption (c)

    185

  4. DOption (d)

    179

View answer & explanation

Correct answer

Answer: (c)C.

185

Why this answer is correct

The pattern followed here is;

Hence, "185" is the correct answer.

Question 19

In the question given, relations between different elements are shown in the statements. These statements are followed by two conclusions. Find out which of the given conclusions follow(s) the given statements and select the correct alternative from the given choices.

Statements:

N > W ≤ Q < F; W > G ≤ H > A

Conclusions:

I. Q ≥ H

II. G < N

  1. AOption (a)

    Neither conclusion I nor II is true

  2. BOption (b)

    Only conclusion II is true

  3. COption (c)

    Only conclusion I is true

  4. DOption (d)

    Either conclusion I or II is true

View answer & explanation

Correct answer

Answer: (b)B.

Only conclusion II is true

Why this answer is correct

Statements:

N > W ≤ Q < F; W > G ≤ H > A

Conclusion:

I. Q ≥ H → False (Q ≥ W > G ≤ H; Can't determine the relation between Q and H)

II. G < N → True (N > W > G; G < N)

Hence, only conclusion II follows.

Question 20

Find the odd one out from the given alternatives.

  1. AOption (a)

    Polar bear

  2. BOption (b)

    Arctic wolf

  3. COption (c)

    Camel

  4. DOption (d)

    Musk ox

View answer & explanation

Correct answer

Answer: (c)C.

Camel

Why this answer is correct

The logic followed is:

All the given options except option (3), is native to the Artic whereas camel lives in hot and dry climate i.e deserts.

Option 1: Polar bear

The polar bear is a hypercarnivorous bear whose native range lies largely within the Arctic Circle, encompassing the Arctic Ocean, its surrounding seas and surrounding land masses. It is the largest extant bear species, as well as the largest extant land carnivore.

Option 2: Arctic wolf

Often called the "polar wolf" or "white wolf," Arctic wolves inhabit the Arctic regions of North America and Greenland.

Option 3: Camel

Camels live in deserts, where it is hot and dry. Camels have adapted and found ways to help them survive in deserts.

Option 4: Musk ox

The Musk ox, also spelled musk ox and musk-ox, is a hoofed mammal of the family Bovidae. Native to the Arctic, it is noted for its thick coat and for the strong odor emitted by males during the seasonal rut, from which its name derives.

Thus option 3 is different from rest of them.

Hence, the correct answer is "Camel".

General Awareness (20 questions)

Question 21

Who out of the following was known as the 'Tansen of the 20th century'?

  1. AOption (a)

    Pt. Ravi Shankar

  2. BOption (b)

    Ustad Bade Ghulam Ali Khan

  3. COption (c)

    Pt. Jasraj

  4. DOption (d)

    Ustad Zakir Hussain

View answer & explanation

Correct answer

Answer: (b)B.

Ustad Bade Ghulam Ali Khan

Why this answer is correct

The correct answer is Ustad Bade Ghulam Ali Khan.

Key Points

  • The most common epithet used to describe Ustad Ghulam Ali Khan is ‘Tansen of the 20th century’.
  • Often referred to as Bade (older) Ghulam Ali Khan to differentiate him from other maestros of the same name.
  • The genius musician was one of the most legendary thumri vocalists of all time, who took the Patiala Gharana.
  • Born on 2 April 1902 in Kasur (now in Pakistan), Bade Ghulam Ali Khan belonged to a family of musicians.
  • He received his early training in vocals from his uncle Kale Khan (who had been a court singer in the princely state of Jammu and Kashmir).
  • He charged an exorbitant price of Rs 25,000 per song. In comparison, mainstream playback singers like Mohammad Rafi and Lata Mangeshkar used to be paid Rs 500 per song in those days.
  • He was awarded the Sangeet Natak Akademi Award and the Padma Bhushan in 1962.
  • Ustad Bade Ghulam Ali Khan breathed last on April 25, 1968, at Basheerbagh Palace in Hyderabad.

Additional Information

Pt. Ravi Shankar- Pt Ravi Shankar was a renowned Sitarist. - He was also an Indian composer and musician born on 7 April 1920. - He has been honored with prestigious awards such as Padma Bhushan, Padma Vibhushan, Bharat Ratna, and Grammy Award.
Pt. Jasraj- Pandit Jasraj is an Indian classical singer and belongs to the Mewati Gharana. - He has been awarded Padma Bhushan and Padma Vibhushan for his contributions to Indian classical music.
Ustad Zakir Hussain- Ustad Zakir Hussain is a tabla maestro, composer, percussionist and music producer. - Zakir Hussain was awarded the Padma Shri in 1988. - He was awarded the Sangeet Natak Akademi Award in 1990.

Question 22

Which of the following individuals was appointed as the Constitutional Adviser to the Constituent Assembly of India in 1946?

  1. AOption (a)

    Mahatma Gandhi

  2. BOption (b)

    BR Ambedkar

  3. COption (c)

    Jawarharlal Nehru

  4. DOption (d)

    BN Rau

View answer & explanation

Correct answer

Answer: (d)D.

BN Rau

Why this answer is correct

The correct answer is BN Rau.

Key Points

  • Sir Benegal Narsing Rau (BN Rao) was the constitutional advisor to the constitutional assembly.
  • He recommended that the rights of an individual should be divided into two categories- justiciable and non-justiciable which were accepted by the drafting committee.
  • He was also India's representative to the United Nations Security Council from 1950 to 1952.
  • He was also a member of the Korean War post-Armistice United Nations Command Military Armistice Commission (UNCMAC).
  • He was responsible for the general structure of its democratic framework of the Constitution and prepared its initial draft in February 1948.
  • He also assisted in drafting the early Constitution of Myanmar, or Burma
  • He also served as a judge of the International Court of Justice at The Hague.

Additional Information

Mahatma Gandhi- The only Session of the Indian National Congress which was presided by Mahatma Gandhi was held at Belgaum.
BR Ambedkar- On 29 August 1947, the Constituent Assembly set up a Drafting Committee under the Chairmanship of Dr B.R. Ambedkar to prepare a Draft Constitution for India.
Jawarharlal Nehru- He was the Chairman of Union Power Committee, Union Constitution Committee and States Committee.

Question 23

What was the ancient name of Elephanta Island where Elephanta Caves are located?

  1. AOption (a)

    Dvarapalas

  2. BOption (b)

    Mahesamurti

  3. COption (c)

    Gharapuri

  4. DOption (d)

    Ardhanarishvara

View answer & explanation

Correct answer

Answer: (c)C.

Gharapuri

Why this answer is correct

The correct answer is Gharapuri.

Key Points

  • Elephanta Island, also known as Gharapuri (“Fortress City”), is an island located in Mumbai (Bombay) Harbour of the Arabian Sea.
  • It is located about 6 miles (10 km) east of Mumbai and 2 miles (3 km) west of the mainland coast of Maharashtra state, western India.
  • This island is a popular tourist destination because of the island's cave temples, the Elephanta Caves, that have been carved out of the rock.
  • Elephanta Island name was given in 16th-century Portuguese explorers, after seeing a monolithic basalt sculpture of an elephant found near the entrance.

 

Additional Information

DvarapalasDvarapalas are regular features of a major Hindu or Buddhist temple complex. They are the formidable looking ‘gatekeepers' and guards in service of the presiding deity of the temple.
MaheshmurtiThe Maheshmurti or Trimurti's sculpture represents three aspects of Shiva present in the Elephanta caves.
ArdhanarishvaraArdhanarishvara composite male-female figure of the Hindu god Shiva together with his consort Parvati. The sculpture is present in the Elephanta caves.

Question 24

Which player received the award of the Man of the Series in the historic India v. Australia Border-Gavaskar that recently concluded in Australia in 2021?

  1. AOption (a)

    R Ashwin

  2. BOption (b)

    M Siraj

  3. COption (c)

    Rishabh Pant

  4. DOption (d)

    Pat Cummins

View answer & explanation

Correct answer

Answer: (d)D.

Pat Cummins

Why this answer is correct

The correct answer is Pat Cummins.

Key Points

  • India scripted history at the Gabba by beating Australia by three wickets to clinch the Border-Gavaskar Trophy 2-1.
  • This was the 1st defeat for Australia at their fortress Gabba in 32 years.
  • Pat Cummins, who took 21 wickets in the 4 Tests and finished as the highest wicket-taker was adjudged the Man of the series.
  • Whereas Rishabh Pant who made an unbeaten 89 and fittingly hit the winning runs was declared the Man of the match.

Important Points

  • About Border Gavaskar Trophy
  • It is named after Alan Border of Australia and Sunil Gavaskar of India.
  • Number of teams - 2
  • Current trophy holder - India (10th title)
  • Most Runs - Sachin Tendulkar (3,235)
  • Most wickets - Anil Kumble (105)
  • Most successful - India (10 titles)
  • First edition - 1996–97 (India)

Question 25

Which of the following scientists discovered the presence of Electrons in the year 1897?

  1. AOption (a)

    JJ Thomson

  2. BOption (b)

    E. Rutherford

  3. COption (c)

    Neils Bohr

  4. DOption (d)

    E. Goldstein

View answer & explanation

Correct answer

Answer: (a)A.

JJ Thomson

Why this answer is correct

The correct answer is JJ Thomson.

Key Points

  • A British physicist J.J.Thomson Heightened the theory of Dalton.
  • Thomson found the existence of extremely minute particles inside the atom.
  • He compared the atom with a 'watermelon' in which the Red part resembles the positively charged portions while the black seed resembles the negatively charged electrons.
  • The atom itself is neutral in nature, as it has equal positive and negative charged electrons.
  • Thomson discovered 'Electrons' for which he got Nobel prize in 1906 A.D.
  • Thomson proposed a better atomic theory than Dalton's atomic model.
  • According to him, a positive charge is dispersed everywhere and the idea that atoms are made up of negative electrons embedded in a gel of positive charge was wrong.
  • Electrons were accidentally discovered by J. J. Thomson while studying the cathode rays.
  • The name electron was given by 'stony'.
  • Cathode rays are emitted from the cathode in a straight line if these rays strike metal objects there is the formation of 'X-rays'.

Additional Information

ScientistInvention
E. Rutherford- Rutherford overturned Thomson's atom model in 1911 with his well-known Gold Foil experiment. - Rutherford made an experiment, he beamed alpha particles through a thin gold foil. From this, he came to know that: - Most alpha particles passed through the gold foil, very few particles bounced back exactly towards the source. - Some of the particles deviated at various angles. - He concluded that an atom has a tiny, dense, 'positively charged' core, where all mass is concentrated; known as Nucleus. - The thickness of gold foil - 0.00004 cm. - Alpha particle - A helium nucleus.
E. GoldsteinIn 1886 Goldstein discovered the existence of positively charged rays in the discharge tube by using a perforated cathode which was later named a proton.
Neils BohrNeils Bohr (1913) was the first to explain quantitatively the general features of the hydrogen atom structure and its spectrum

Question 26

Which is the second largest continent on Earth?

  1. AOption (a)

    North America

  2. BOption (b)

    South America

  3. COption (c)

    Africa

  4. DOption (d)

    Asia

View answer & explanation

Correct answer

Answer: (c)C.

Africa

Why this answer is correct

The correct answer is Africa.

Key Points

  • Africa:
  • It is the second-largest continent.
  • The continent's terrain was inhabitable and remained unknown for thousand years and hence, it is known as Dark Continent.
  • The world's hottest place, Ethiopia is in Africa.
  • World's longest river- the Nile and World's largest desert- the Sahara
  • It is also regarded as the place where Humans originated.

Additional Information

  • Asia:
  • It is the world's largest continent.
  • Asia houses the highest point on earth- Mount Everest.
  • It covers one-third of the earth's surface.
  • It saw the birth of two great ancient civilizations: the Harappan Civilization and the Chinese Civilization.
  • South America:
  • It is located in the western hemisphere.
  • It is the fourth largest continent.
  • It is connected to North America through the Isthmus of Panama.
  • It has one mountain range i.e The Andes. and its highest point is Aconcagua.
  • North America:
  • ​North America is the third largest continent in the world.
  • The continent lies completely in the Northern and Western Hemisphere.
  • North America is bounded on the north by the Arctic Ocean, on the south by the Caribbean Sea.
  • It has bounded also by the North Atlantic Ocean in the east and on the west by the North Pacific Ocean.
  • Denali (Mount McKinley) in Alaska, is the highest point of the continent, rising 20,310 feet (6,190 meters) above sea level.
  • Death Valley in California is its lowest point of the continent, at 282 feet (86 meters) below sea level.

Question 27

What language was used to write the oldest Indian legal text called Manusmriti?

  1. AOption (a)

    Hindi

  2. BOption (b)

    English

  3. COption (c)

    Prakrit

  4. DOption (d)

    Sanskrit

View answer & explanation

Correct answer

Answer: (d)D.

Sanskrit

Why this answer is correct

The correct answer is Sanskrit.

Key Points

  • Manusmriti is usually translated as "code of Manu", but it literally means "reflections of Manu".
  • It was written in Sanskrit.
  • It presents itself as a document that compiles and organizes the code of conduct for human society.
  • Manu-smriti is the popular name of the work, which is officially known as Manava-dharma-shastra.
  • The Manusmriti was one of the first Sanskrit texts studied by European philologists.
  • It was first translated into English by Sir William Jones.
  • His version was published in 1794.

Important Points

  • As a text, Manusmriti is divided into 12 adhyayas or lessons and the four broad themes that emerge from the text are – the creation of the world, sources of Dharma, the dharma of the four social classes and the law of Karma, rebirth and the final liberation.
  • Manusmriti declares seven means of acquiring wealth for men, while six means for acquiring wealth for women.
  • For men - Inheritance, Finding, Conquest, Purchase, Investment, Work, and acceptance of gifts from good people.
  • For women - Streedhana (at the time of marriage)/Bridal Processions, Token of Affection (Whatever she got from her brother, mother, or father), subsequently a gift acquired after marriage from her husband, yet again, as a token of affection.

Question 28

India’s first hot air balloon wildlife safari has been launched in which of the following Tiger Reserves?

  1. AOption (a)

    Manas

  2. BOption (b)

    Bandhavgarh

  3. COption (c)

    Corbett

  4. DOption (d)

    Kanha

View answer & explanation

Correct answer

Answer: (b)B.

Bandhavgarh

Why this answer is correct

The correct answer is Bandhavgarh.

Key Points

  • India's first hot air balloon wildlife safari in a tiger reserve.
  • It was launched recently in Madhya Pradesh's famous Bandhavgarh Tiger Reserve.
  • It was launched by Madhya Pradesh Forest Minister Vijay Shah.
  • It was launched to compare the service to the safari activities in Africa’s forests to that of India and ensured that more such services will be introduced in Pench, Kanha, and Panna tiger reserves.
  • The hot air balloon safari will allow tourists and wildlife enthusiasts to enjoy aerial views of magnificent tigers and leopards roaming with other wild animals in the reserve.

​

Additional Information

National ParkState
ManasAssam
CorbettUttarakhand
KanhaMadhya Pradesh

Question 29

Which of the following scientists received the award of DRDO's best Scientist of the Year 2020?

  1. AOption (a)

    K Sivan

  2. BOption (b)

    Hemant Kumar Pandey

  3. COption (c)

    G Reddy

  4. DOption (d)

    CNR Rao

View answer & explanation

Correct answer

Answer: (b)B.

Hemant Kumar Pandey

Why this answer is correct

The correct answer is Hemant Kumar Pandey.

Key Points

  • Senior scientist Hemant Kumar Pandey has been honoured with DRDO's 'Scientist of the Year Award' for his contribution in developing several herbal medicines, including the popular drug Lukoskin meant for the treatment of leucoderma.
  • He has been undertaking research at the DRDO lab Defence Institute of Bio-Energy Research (DIBER) at Pithoragarh in Uttarakhand for the past 25 years.
  • A formulation of around eight herbs found in the Himalayan region, Lukoskin helps in treating white patches and is marketed by Delhi-based Aimil Pharmaceuticals.

Additional Information

ScientistAchievements
K SivanVon Karman Award 2020
G ReddyThe Missile Systems Award 2019
CNR RaoInternational Eni Award 2020 for research in energy frontiers

Question 30

Where were the 2nd Khelo India National Winter Games oragnized in 2021?

  1. AOption (a)

    Shimla

  2. BOption (b)

    Sonmarg

  3. COption (c)

    Srinagar

  4. DOption (d)

    Gulmarg

View answer & explanation

Correct answer

Answer: (d)D.

Gulmarg

Why this answer is correct

The correct answer is Gulmarg.

Key Points

  • The 2nd Khelo India National Winter Games took place in Gulmarg, Jammu, and Kashmir.
  • The game was organized by the Winter Games Association of Jammu and Kashmir and the Jammu and Kashmir Sports Council, with the Indian Government's Ministry of Youth Affairs and Sports offering support.
  • Union Territory of Jammu and Kashmir won the maximum number of medals.
  • They won 11 gold, 18 silver, and 5 bronze to finish with a tally of 34 medals.
  • The first edition of the Khelo India Winter Games was also held at Gulmarg in March 2020.

​

Important Points

  • About Khelo India:
  • ​Khelo India is a national sports development programme.
  • Launched by the government to revive the sports culture in India at the grass-root level.
  • Youth Games at school and college levels in various summer Olympic sports and more are already being held at a large scale under Khelo India since 2018.
  • Now, winter sports are also receiving support from Khelo India.

Question 31

How many languages were initially included in the Eighth Schedule of the Indian Constitution?

  1. AOption (a)

    14

  2. BOption (b)

    18

  3. COption (c)

    16

  4. DOption (d)

    22

View answer & explanation

Correct answer

Answer: (a)A.

14

Why this answer is correct

The correct answer is 14.

Key Points

  • The constitutional provisions on languages are in articles 344(1) and 351 of the Indian Constitution.
  • The Eighth Schedule of the Indian Constitution includes 22 languages.
  • Originally, it had 14 languages but presently there are 22 languages.
  • The 22 languages are - Assamese, Bengali, Bodo, Dogri, Gujarati, Hindi, Kannada, Kashmiri, Konkani, Maithili, Malayalam, Manipuri, Marathi, Nepali, Odia, Punjabi, Sanskrit, Santali, Sindhi, Tamil, Telugu, and Urdu.

Important Points

  • Sindhi was added by the 21st Amendment Act of 1967.
  • Konkani, Manipuri, and Nepali were added by the 71st Amendment Act of 1992.
  • Bodo, Dogri, Maithali, and Santhali were added by the 92nd Amendment Act of 2003.
  • Part XVII of the constitution consists of Articles on Official Language.
  • Article 343 - 351 - Official Languages
  • No script for the ​Konkani language.​

Additional Information

  • Schedules in Indian Constitution
ScheduleFeature
FirstNames of states and UTs
SecondProvisions of allowances, privileges, and emoluments of the President of India, Governors, Speakers, Supreme Court and High Court judges, etc.
ThirdOath and affirmation for Union Ministers of India, Members of Parliament, Supreme Court and High Court judges, etc.
FourthContains the provisions in relation to the allocation of seats for States and Union Territories in the Rajya Sabha
FifthContains provisions in relation to the administration and control of scheduled areas and scheduled tribes
SixthContains provisions in relation to the administration of tribal areas in the states of Assam, Meghalaya, Tripura, and Mizoram
SeventhUnion, State, and Concurrent list
Eight22 official languages
NineIt deals with the state acts and regulations related to land reforms
TenProvisions relating to the disqualification of the members of Parliament and State Legislatures on the ground of defection.
ElevenProvisions that specify the powers, authority, and responsibilities of Panchayats.
TwelveProvisions that specify the powers, authority, and responsibilities of Municipalities. It has 18 matters.

Question 32

According to Article 343(1) of the Indian Constitution, what language is the official language of the Union?

  1. AOption (a)

    Hindi

  2. BOption (b)

    English

  3. COption (c)

    Sanskrit

  4. DOption (d)

    Hindi in Devnagari Script

View answer & explanation

Correct answer

Answer: (d)D.

Hindi in Devnagari Script

Why this answer is correct

The correct answer is Hindi in Devnagari Script.

Key Points

  • Part XVII is a compilation of rules and regulations concerned with the constitution of India.
  • It contains Articles 343 to Article 351.
  • Article 343(1) in The Constitution Of India 1949
  • ​The official language of the Union shall be Hindi in Devanagari script The form of numerals to be used for the official purposes of the Union shall be the international form of Indian numerals.

Important Points

ArticlesProvisions
Article 344Commission and Committee of Parliament on official language
Article 345Official language or languages of a State
Article 346The official language for communication between one State and another or between a State and the Union
Article 347Special provision relating to language spoken by a section of the population of a State
Article 348Language to be used in the Supreme Court and in the High Courts and for Acts, Bills, etc.
Article 349Special procedure for enactment of certain laws relating to language
Article 350Language to be used in representations for redress of grievances
Article 350AFacilities for instruction in mother tongue at the primary stage
Article 350 BSpecial Officer for linguistic minorities
Article 351The directive for the development of the Hindi language

Question 33

What is the rate at which the Reserve Bank provides loans to commercial banks called?

  1. AOption (a)

    Dividend

  2. BOption (b)

    Bank Loan Rate

  3. COption (c)

    Bank Rate

  4. DOption (d)

    Reverse Repo Rate

View answer & explanation

Correct answer

Answer: (c)C.

Bank Rate

Why this answer is correct

The correct answer is Bank Rate.

Key Points

  • Bank Rate refers to the official interest rate at which RBI will provide loans to the banking system which includes commercial/cooperative banks, development banks etc.
  • Such loans are given out either by direct lending or by rediscounting (buying back) the bills of commercial banks and treasury bills. Thus, the bank rate is also known as the discount rate.
  • The bank rate is used as a signal by the RBI to the commercial banks on RBI’s thinking of what the interest rates should be.
  • When RBI increases the bank rate, the cost of borrowing for banks rises and this credit volume gets reduced leading to a decline in the supply of money. Thus, an increase in the Bank rate reflects the tightening of RBI monetary policy.
  • A decrease in the Bank rate reflects the loosening of RBI monetary policy.

Confusion Points

  • The Repo rate is the rate at which the RBI lends to commercial banks by purchasing securities while the Bank rate is the lending rate at which commercial banks can borrow from the RBI without providing any security.
  • **A reverse repo rate is said to be the rate of interest at which the central bank (RBI in India) borrows money from commercial banks for a short term.**​

Additional Information

TermsMeaning
DividendA dividend is the distribution of some of a company's earnings to a class of its shareholders, as determined by the company's board of directors.
Bank Loan RateThe rate for an amount of money loaned at interest by a bank to a borrower, usually on collateral security, for a certain period of time.
Reverse Repo RateReverse repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) borrows money from commercial banks within the country.

Question 34

The atoms of different elements with different atomic numbers and that have the same mass number are called:

  1. AOption (a)

    Isotopes

  2. BOption (b)

    Neutrons

  3. COption (c)

    Isobars

  4. DOption (d)

    Ions

View answer & explanation

Correct answer

Answer: (c)C.

Isobars

Why this answer is correct

The correct answer is Isobars.

Key Points

  • Isobars are atoms of different chemical elements that have different atomic numbers but the same mass number.
  • This is because they have the same number of nucleons.
  • Example of Isobars:

Additional Information

TermsDefinition
IsotopesIsotopes are atoms having the same atomic number but different atomic mass.
NeutronsThe neutron is the particle in the atomic nucleus with a mass = 1 and charge = 0. Neutrons are found together with protons in the atomic nucleus. The number of neutrons in an atom determines its isotope.
IonsAn ion can be defined as a chemical species which holds a positive or negative charge of some magnitude.

Question 35

Epigraphy is known as the study of what?

  1. AOption (a)

    Vedas

  2. BOption (b)

    Maps

  3. COption (c)

    Old Tales

  4. DOption (d)

    Inscriptions

View answer & explanation

Correct answer

Answer: (d)D.

Inscriptions

Why this answer is correct

The correct answer is Inscriptions.

Key Points

  • Epigraphy:
  • The study of the inscription is known as epigraphy.
  • Inscriptions are seen on rocks, pillars, stones, slabs, copper plates, walls of buildings, and bodies of temples.
  • The Asokan edicts, Allahabad Pillar Inscription of Samudragupta, Aihole Inscription of Pulakesin II, etc. are some major inscriptions of India.

Additional Information

TermsDefined for the study of
CartographyMaps
folkloristicsOld Tales
NumismaticsCoins
IchthyologyFishes

Question 36

Which among the following rulers is known for founding the city of Fatehpur Sikri?

  1. AOption (a)

    Sher Shah Suri

  2. BOption (b)

    Shah Jahan

  3. COption (c)

    Akbar

  4. DOption (d)

    Humayun

View answer & explanation

Correct answer

Answer: (c)C.

Akbar

Why this answer is correct

The correct answer is Akbar.

Key Points

  • Fatehpur Sikri is a town in Agra District (UP).
  • Fatehpur Sikri was founded as the capital of the Mughal Empire in 1571 by Emperor Akbar.
  • Fatehpur Sikri is the best example of Muslim architecture.
  • The places to visit here include the Buland Darwaza, Tomb of Salim Chishti, Jama Masjid, Ibadat Khana, and more.
  • The Ibādat Khāna was a meeting house built in 1575 CE by the Mughal Emperor Akbar at Fatehpur Sikri.
  • The purpose was to gather spiritual leaders of different religious grounds so as to conduct a discussion on the teachings of the respective religious leaders.

Additional Information

  • Sher Shah Suri:​
  • Sher Shah Suri lived from 1486 to 1545 and is also known as Sher Khan or the Lion King.
  • He founded the Sur Dynasty and ruled much of Afghanistan, Pakistan and northern India.
  • His tomb is in the manner of Mughal garden tombs but is set in the midst of a lake.
  • He died in an accidental gunpowder explosion in the fort of Kalinjar on the 10th day of Rabi' al-awwal,13 May 1545 AD.
  • The tomb of Sher Shah Suri is situated in Sasaram in the Rohtas district of Bihar state in India.
  • The tomb was built in memory of Emperor Sher Shah Suri, a Pathan from Bihar who defeated the Mughal Empire and founded the Suri Empire in northern India.​
  • Shah Jahan:​
  • Shah Jahan's full name is Shahab-ud-din Muhammad Khurram.
  • Shah Jahan was the 5th Mughal Emperor of the Mughal dynasty.
  • The Mahi Maratib was the highest honour in the Mughal Empire. It symbolized honour, bravery and strength and the Mughal emperors only conferred it upon their highest dignitaries.
  • This honour of the Mahi Maratib was instituted by the Mughal emperor Shah Jahan sometime around 1632.
  • Shah Jahan is known as "Engineer King".
  • He is known by the name because of his inclination towards architecture.
  • He built the Taj Mahal, Shahjahanabad (Delhi) city, Red Fort, Jama Masjid, Pearl Mosque, and Peacock throne.
  • Humayun:​
  • He was the second Mughal emperor.
  • He was interested in Astronomy, Geography, Mathematics, and Astrology.
  • He also received the Kohinoor diamond from the ruler of Gwalior.

Question 37

Edmund Hillary, one of the first persons to climb Mount Everest, is from which country?

  1. AOption (a)

    Russia

  2. BOption (b)

    Australia

  3. COption (c)

    New Zealand

  4. DOption (d)

    Nepal

View answer & explanation

Correct answer

Answer: (c)C.

New Zealand

Why this answer is correct

The correct answer is New Zealand.

Key Points

  • Edmund Hillary and Tenzing Norgay were the first people to climb Mount Everest.
  • They achieved this feat together on May 29, 1953.
  • Edmund Hillary was from New Zealand.
  • Tenzing Norgay was a Nepali Indian mountaineer, belonging to the Sherpa tribe.

Important Points

  • Mount Everest is the tallest peak in the world.
  • Its height is 8848m(its height is increasing).
  • It is located in the Greater Himalayas in Nepal.
  • It runs along the border of Nepal and China.
  • It can be accessed through Nepal as well as China.
  • Most of the expeditions of the Himalayas takes place from Nepal.

Additional Information

CountryCapitalCurrency
RussiaMoscowRuble
AustraliaCanberraAustralian dollar
New ZealandWellingtonNew Zealand Dollar
NepalKathmanduNepalese Rupee

Question 38

In what year was the Reserve Bank of India established?

  1. AOption (a)

    1935

  2. BOption (b)

    1947

  3. COption (c)

    1955

  4. DOption (d)

    1950

View answer & explanation

Correct answer

Answer: (a)A.

1935

Why this answer is correct

The correct answer is 1935.

Key Points

  • The Reserve Bank of India was established on April 1, 1935, in accordance with the provisions of the Reserve Bank of India Act, 1934.
  • This central banking institution was established based on the suggestions of the “Royal Commission on Indian Currency & Finance” in 1926. This commission was also known as Hilton Young Commission.
  • The Central Office of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937.
  • Though originally privately owned, since nationalisation in 1949, the Reserve Bank is fully owned by the Government of India.
  • RBI regulates the credit and currency system in India.
  • Governor - Shri Shaktikanta Das
  • Deputy Governor -
  • Shri Mahesh Kumar Jain
  • Dr. M. D. Patra
  • Shri M. Rajeshwar Rao
  • Shri T. Rabi Sankar

Question 39

Which of the following individuals became the youngest person in India to occupy the post of mayor anywhere in the country?

  1. AOption (a)

    Arya Rajendran

  2. BOption (b)

    Chandrani Murmu

  3. COption (c)

    Sabitha Beegam

  4. DOption (d)

    Suryanarayana Tejasvi

View answer & explanation

Correct answer

Answer: (a)A.

Arya Rajendran

Why this answer is correct

The correct answer is Arya Rajendran.

Key Points

  • In December 2020 Arya Rajendran become the youngest mayor of India (21 years) in the Thiruvananthapuram city of Kerala.
  • ​She secured 54 votes in the 100-member Council in the election held on December 28.
  • The head of the Municipal Corporation of the respective city elected by the public is called Mayor.
  • Mayor is the First Citizen of the City.

Image unavailable

Additional Information

Chandrani MurmuA 25 year, 11-month-old engineering graduate from Odisha Chandrani Murmu, has become the youngest Member of Parliament to the 17th Lok Sabha.
Sabitha BeegamShe is the first mayor of Kollam City. She is also a social worker from Kollam, Kerala.
Suryanarayana TejasviTejasvi Surya is the BJP candidate who contested and won from the Bangalore South constituency. At 28, he is the youngest candidate to have won the Lok Sabha Polls

Question 40

Who is the writer of the book "Manohar Parrikar- Off the Record"?

  1. AOption (a)

    SY Quraishi

  2. BOption (b)

    Waman Subha Prabhu

  3. COption (c)

    Pramod Sawant

  4. DOption (d)

    Ramchandra Guha

View answer & explanation

Correct answer

Answer: (b)B.

Waman Subha Prabhu

Why this answer is correct

The correct answer is Waman Subha Prabhu.

Key Points

  • The book ‘Manohar Parrikar- Off the Record’ has been written by senior journalist Waman Subha Prabhu.
  • Goa Chief Minister, Pramod Sawant released this book at a function organized at Institute Menezes Braganza hall in the city.
  • In the book, the author has endeavoured to narrate the multi-faceted personality of the late Manohar Parrikar.

Additional Information

AuthorBook
SY QuraishiThe Population Myth: Islam, Family Planning and Politics in India
Ramchandra GuhaThe commonwealth of cricket: The most subtle and sophisticated game known to mankind

Arithmetic Ability (20 questions)

Question 41

The graph given below represent the number of users of two brand services A and B

across cities P, Q, R, S and T.

The number of users of brand A in city T is what percent of the number of users of

brand B in city Q?

  1. AOption (a)

    160

  2. BOption (b)

    140

  3. COption (c)

    150

  4. DOption (d)

    110

View answer & explanation

Correct answer

Answer: (b)B.

140

Why this answer is correct

Given:

The number of users of brand A in city T is 700

The number of users of brand B in city Q is 500

Concept:

Percentage of gain marks = (Gain Marks/Total Marks) × 100

Calculation:

⇒ The required percentage = (700/500) × 100 = 140

∴ The required result will be 140%.

Question 42

Roli alone can do work in eight days. Neelam alone can do the same work in twelve days while Seema alone can do the same work in thirteen days. If they are paid Rs.2225 for doing the same work together, then what will be the share of Roli (in Rs.)?

  1. AOption (a)

    Rs.975

  2. BOption (b)

    Rs.825

  3. COption (c)

    Rs.875

  4. DOption (d)

    Rs.1125

View answer & explanation

Correct answer

Answer: (a)A.

Rs.975

Why this answer is correct

Given:

The Roli alone can do a work in 8 days

The Neelam alone can do the same work in 12 days

The Seema alone can do the same work in 13 days

Concept:

Work = Time × Efficiency

Calculation:

⇒ The efficiency of Roli = One day work of Roli = 1/8

⇒ The efficiency of Neelam = One day work of Neelam = 1/12

⇒ The efficiency of Seema = One day work of Seema = 1/13

⇒ The ratio of efficiency of Roli, Neelam and Seema respectively = 1/8 : 1/12 : 1/13 = 39 : 26 : 24

⇒ The share of Roli = {39/(39 + 26 + 24)} × (2225) = (39/89) × 2225 = 39 × 25 = 975

∴ The required result will be 975.

Question 43

In covering a distance of 30 km, Abhay takes 2 hours more than Sameer. If Abhay doubles his speed, then he would take 1 hour less than Sameer. What is the speed of Abhay?

  1. AOption (a)

    10 kmph

  2. BOption (b)

    6 kmph

  3. COption (c)

    7.5 kmph

  4. DOption (d)

    5 kmph

View answer & explanation

Correct answer

Answer: (d)D.

5 kmph

Why this answer is correct

Given:

The total distance is 30 km

Concept:

Time = Distance/Speed

Calculation:

⇒ Let be assume the speed of Abhay is A and the speed of Sameer is B

⇒ In the first condition when both cover the distance with normal speed

⇒ 30/A - 30/B = 2

⇒ 1/A - 1/B = 1/15 

⇒ (B - A) × 15 = AB ...... (1)

⇒ In the second condition when Abhay doubles its speed

⇒ 30/B - 30/2A = 1

⇒ 1/B - 1/2A = 1/30 

⇒ (2A - B) × 15 = AB ....... (2)

⇒ By equation (1) and (2)

⇒ A/B = 2/3 .... (3)

⇒ By equation (1) and (3)

⇒ Abhay's speed = 5 km/h

∴ The required result will be 5 km/h.

Question 44

If the 7-digit number 4x3074y is exactly divisible by 24, then which of the following is not a possible value for 'x'?

  1. AOption (a)

    2

  2. BOption (b)

    5

  3. COption (c)

    1

  4. DOption (d)

    8

View answer & explanation

Correct answer

Answer: (c)C.

1

Why this answer is correct

Given:

The 7 - digit number 4x3074y

Concept:

For divisible by 24 number should be divisible by 8 and 3.

For divisible by 8 last three digits of the number should be divisible by 8.

For divisible by 3 sums of all digits of the number should be divisible by 3.

Calculation:

⇒ For divisible by 8 y should be 4 

⇒ 744 (last three digits of the number) is divisible by 8

⇒ For divisible by 3 = (4 + x + 3 + 0 + 7 + 4 + 4)/3     (where y = 4)

⇒ (22 + x)/3  ...... (1)

⇒ For divisible by 3 possible value of x is,

⇒ x = 2, (22 + 2)/3 = 24/3 = 8

⇒ x = 5, (22 + 5)/3 = 27/3 = 9

⇒ x = 8, (22 + 8)/3 = 30/3 = 10

⇒ Then not possible value will be 1

∴ The required result will be 1.

Question 45

The price of almonds first increased by 30 per cent and then decreased by 10 per cent and 20 per cent. If the new price of almonds is Rs.468/kg, then what is its initial price?

  1. AOption (a)

    Rs.500

  2. BOption (b)

    Rs.550

  3. COption (c)

    Rs.560

  4. DOption (d)

    Rs.480

View answer & explanation

Correct answer

Answer: (a)A.

Rs.500

Why this answer is correct

Given:

The new price of almonds is 468

Concept:

Percentage of gain marks = {(Gain Marks)/(Total Marks)} × 100

Calculation:

⇒ Let be assume initial price of almonds is X

According to question, 

⇒ X × (1 + 30/100) × (1 - 10/100) × (1 - 20/100) = 468

⇒ X × (130/100) × (90/100) × (80/100) = 468

⇒ X = 500

∴ The required result will be 500.

Question 46

How many digits have been used to number the pages of a book, if it has 352 pages?

  1. AOption (a)

    848

  2. BOption (b)

    504

  3. COption (c)

    759

  4. DOption (d)

    948

View answer & explanation

Correct answer

Answer: (d)D.

948

Why this answer is correct

Given:

The total number of pages of the book is 352

Calculation:

We need to calculate the total digit used in 1 to 352

⇒ The single-digit number is 9 from 1 to 9

⇒ So, digit used single-digit number = 9 × 1 = 9

⇒ The two-digit number is 90 from 10 to 99

⇒ So, digits used in two-digit numbers = 90 × 2 = 180

⇒ The three-digit number is 253 from 100 to 352

⇒ So, digits used in three-digit numbers = 253 × 3 =759

⇒ Total digits used = 9 + 180 + 759 = 948

∴ The required result will be 948.

Question 47

What will come in the place of question mark (?) in the given expression?

842 - 792 + √1936 - 20% of 980 = ?

  1. AOption (a)

    673

  2. BOption (b)

    643

  3. COption (c)

    663

  4. DOption (d)

    653

View answer & explanation

Correct answer

Answer: (c)C.

663

Why this answer is correct

Given:

842 - 792 + √1936 - 20% of 980 = ?

Concept:

Calculation:

⇒ 842 - 792 + √1936 - 20% of 980 = ?

⇒ 7056 - 6241 + 44 - 196

⇒ 7100 - 6437

⇒ 663

∴ The required result will be 663.

Question 48

Sandeep bought 8 items for Rs.120 and sold 6 items for Rs.126. What is the profit percentage he made?

  1. AOption (a)

    30 percent

  2. BOption (b)

    35 percent

  3. COption (c)

    50 percent

  4. DOption (d)

    40 percent

View answer & explanation

Correct answer

Answer: (d)D.

40 percent

Why this answer is correct

Given:

Sandeep bought 8 items for Rs. 120

Sandeep sold 6 items for Rs. 126

Concept:

Profit percentage = (Selling price - Cost price)/Cost price × (100)

Calculation:

⇒ Cost price of 6 items = (120/8) × 6 = 90

⇒ The profit percange = (126 - 90)/90 × (100) = 40

∴ The required result will be 40%.

Question 49

The speed of a boat in still water is 15 km/hr. The time taken by the boat to cover 24 km upstream in a river was 40 minutes more than that taken by the boat to cover 24 km downstream. What is the speed of the stream?

  1. AOption (a)

    4 km/hr

  2. BOption (b)

    3 km/hr

  3. COption (c)

    2 km/hr

  4. DOption (d)

    5 km/hr

View answer & explanation

Correct answer

Answer: (b)B.

3 km/hr

Why this answer is correct

Given:

The speed of the boat in still water is 15 km/h

Concept:

The upstream speed = Speed of boat - Speed of stream

The downstream speed = Speed of boat + Speed of stream

Calculation:

⇒ Let be assume the speed of the stream is P

⇒ Time is taken by boat in upstream = 24/(15 - P)

⇒ Time taken by boat in downstream = 24/(15 + P)

⇒ According to question

⇒ 24/(15 - P) - 24/(15 + P) = 40/60

⇒ 24 ×{(15 + P - 15 + P)/(152 - P2)} = 2/3

⇒ 24 × {2P/(225 - P2)} = 2/3

⇒ 24 × 3 × P = 225 - P2

⇒ P2 + 72P - 225 = 0

⇒ By solving 

⇒ P = -75, 3

⇒ P = 3     (Because speed can not be negative)

∴ The required result will be 3 km/h.

Question 50

The given pie chart shows the percentage distribution of the number of buckets sold by a grocery store on different days of a week. And, the number of red buckets sold by the same grocery store on Monday, Tuesday, Wednesday, Thursday and Friday is 225, 150, 175, 75 and 50 respectively.

Total buckets sold (in a day) = Red buckets + Green buckets

Total buckets sold by a grocery store in the given days = 1250

What is the average number of Green buckets sold on Monday, Tuesday and Wednesday have taken together?

  1. AOption (a)

    150

  2. BOption (b)

    125

  3. COption (c)

    75

  4. DOption (d)

    100

View answer & explanation

Correct answer

Answer: (b)B.

125

Why this answer is correct

Given:

The red bucket sold on Monday is 225

The red bucket sold on Tuesday is 150

The red bucket sold on Wednesday is 175

Concept:

Average = (Total sum of all items)/(Total number of items)

Calculation:

⇒ The total bucket sold on Monday = (32/100) × 1250 = 400

⇒ The total bucket sold on Tuesday = (18/100) × 1250 = 225

⇒ The total bucket sold on Wednesday = (24/100) × 1250 = 300

⇒ The total green bucket sold on Monday = 400 - 225 = 175

⇒ The total green bucket sold on Tuesday = 225 - 150 = 75

⇒ The total green bucket sold on Wednesday = 300 - 175 = 125

⇒ The average number of green buckets sold on all three days = (175 + 75 + 125)/3 = 375/3 = 125

∴ The required result will be 125.

Question 51

The radius of the circle whose area is equal to the sum of the area of the two circles whose radii are 8 cm and 15 cm respectively is:

  1. AOption (a)

    23 cm

  2. BOption (b)

    18 cm

  3. COption (c)

    17 cm

  4. DOption (d)

    13 cm

View answer & explanation

Correct answer

Answer: (c)C.

17 cm

Why this answer is correct

Given:

The radius of the circle is 8 cm and 15 cm respectively.

Concept:

The area of circle = π × (The radius of the circle)2

π = 22/7 or 3.14

Calculation:

Let be assume the radius of the big circle is R

⇒ The area of a circle whose radius is 8 cm = 22/7 × 8 × 8 = 1408/7 cm2

⇒ The area of a circle whose radius is 15 cm = 22/7 × 15 × 15 = 4950/7 cm2

⇒ The sum of the area of two circles = 1408/7 + 4950/7 = 6358/7

⇒ The area of big circle = π × R2 = (22/7) × R2

⇒ According to question

⇒ (22/7) × R2 = 6358/7

⇒ R2 = 289

⇒ R = 17

∴ The required result will be 17.

Question 52

What is the smallest fraction of the following fractions?

  1. AOption (a)

    5225\frac{52}{25}

  2. BOption (b)

    2512\frac{25}{12}

  3. COption (c)

    4924\frac{49}{24}

  4. DOption (d)

    3917\frac{39}{17}

View answer & explanation

Correct answer

Answer: (c)C.

4924\frac{49}{24}

Why this answer is correct

Given:

Some fraction 52/25, 25/12, 49/24,and 39/17

Concept:

A fraction = Numerator/Denominator

Calculation:

⇒ 52/25 = 2.08

⇒ 25/12 = 2.083̅ 

⇒ 49/24 = 2.0416̅ 

⇒ 39/17 = 2.29411764705

⇒ 39/17 > 25/12 > 52/25 > 49/24

∴ The required result will be 49/24.

Question 53

A sum of Rs.1450 was invested on simple interest at a certain rate for 3 years. It fetches Rs.522 as interest. Had it been invested at 4 percent higher rate, the simple interest will be:

  1. AOption (a)

    Rs.724

  2. BOption (b)

    Rs.696

  3. COption (c)

    Rs.596

  4. DOption (d)

    Rs.776

View answer & explanation

Correct answer

Answer: (b)B.

Rs.696

Why this answer is correct

Given:

The sum is 1450, the time is 3 years and the Simple interest is Rs. 522

Concept:

The simple interest = (Principle × Time × Rate)/100

Calculation:

Let be assume the rate is R

⇒ 522 = (1450 × 3 × R)/100

⇒ R = (522 × 100)/(1450 × 3) = 12%

⇒ New rate will be = 12 + 4 = 16%       (According to question)

⇒ Simple interest = (1450 × 3 × 16)/100 = 69600/100 = 696

∴ The required result will be 696.

Question 54

The average of 11, x, 25 and 15 is 15 and the average of x, y, 15 and 22 is 16. What is the average of (y/x) + (x/y)?

  1. AOption (a)

    1.5

  2. BOption (b)

    2

  3. COption (c)

    1.25

  4. DOption (d)

    2.5

View answer & explanation

Correct answer

Answer: (c)C.

1.25

Why this answer is correct

Given:

The average of 11, x, 25 and 15 is 15

The average of x, y,15 and 22 is 16

Concept:

Average = (Total sum of all items)/(Total number of items)

Calculation:

⇒ (11 + x + 25 + 15)/4 = 15

⇒ x + 51 = 60

⇒ x = 9

⇒ (x + y + 15 + 22)/4 = 16

⇒ (9 + y + 15 + 22) = 64

⇒ y = 18

⇒ The average of (y/x) + (x/y) = {(y/x) + (x/y)}/2 = {(18/9) + (9/18)}/2 = (2 + 0.5)/2 = 2.5/2 = 1.25

∴ The required result will be 1.25.

Question 55

What value will come in place of question mark (?) in the following question?

?3\frac{?}{3} of 625=225?\sqrt{625} = \frac{225}{?}of 12 %MathType!MTEF!2!1!+−%feaahqart1ev3aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn%hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr%4rNCHbGeaGqiFGI8qiVeYlb91rFfpec8Eeeu0xXdbba9frFj0−OqFf%ea0dXdd9vqaq−JfrVkFHe9pgea0dXdar−Jb9hs0dXdbPYxe9vr0−vr%0−vqpWqaaeaabiGaciaacaqabeaadaqaaqaaaOqaamaakeaabaGaaG%ymaiaaiEdacaaIYaGaaGioaaWcbaGaaG4maaaaaaa!3B46!17283\% MathType!MTEF!2!1!+- \% feaahqart1ev3aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn \% hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr \% 4rNCHbGeaGqiFGI8qiVeYlb91rFfpec8Eeeu0xXdbba9frFj0-OqFf \% ea0dXdd9vqaq-JfrVkFHe9pgea0dXdar-Jb9hs0dXdbPYxe9vr0-vr \% 0-vqpWqaaeaabiGaciaacaqabeaadaqaaqaaaOqaamaakeaabaGaaG \% ymaiaaiEdacaaIYaGaaGioaaWcbaGaaG4maaaaaaa!3B46! \sqrt[3]{{1728}}

  1. AOption (a)

    30

  2. BOption (b)

    36

  3. COption (c)

    18

  4. DOption (d)

    21

View answer & explanation

Correct answer

Answer: (c)C.

18

Why this answer is correct

Given:

The equation is ?/3 of √625 = 225/? of 12

Concept:

Calculation:

⇒ ?/3 × (25) = 225/? × 12

⇒ ?2 = (225 × 3 × 12)/25 = 9 × 3 × 12 = 324

⇒ ? = 18

∴ The required result will be 18.

Question 56

The given pie chart shows the percentage distribution of the number of buckets sold by a grocery store on different days of a week. And, the number of red buckets sold by the same grocery store on Monday, Tuesday, Wednesday, Thursday and Friday is 225, 150, 175, 75 and 50 respectively.

Total buckets sold (in a day) = Red buckets + Green buckets

Total buckets sold by a grocery store in the given days = 1250

What is the ratio between the total number of red buckets sold on Wednesday and Thursday together to the total number of green buckets sold on Thursday and Friday together?

  1. AOption (a)

    6 ∶ 5 

  2. BOption (b)

    3 ∶ 2

  3. COption (c)

    4 ∶ 3

  4. DOption (d)

    5 ∶ 4

View answer & explanation

Correct answer

Answer: (d)D.

5 ∶ 4

Why this answer is correct

Given:

The total number of red buckets sold on Wednesday = 175

The total number of buckets sold on Thursday = (16/100) × 1250 = 200

The total number of buckets sold on Friday = (10/100) × 1250 = 125

The total number of red buckets sold on Thursday = 75

The total number of red buckets sold on Friday = 50

Calculation:

⇒ The total number of red buckets sold on Wednesday and Thursday together = 175 + 75 = 250

⇒ The total number of green buckets sold on Thursdays = 200 - 75 = 125

⇒ The total number of green buckets sold on Friday = 125 - 50 = 75

⇒ The total number of green buckets sold on Thursday and Friday together = 125 + 75 = 200

⇒ The required ratio = 250 : 200 = 5 : 4

∴ The required result will be 5 : 4.

Question 57

Lokesh’s expenditure and savings are in the ratio of 7 : 5. If his income increased by 20 percent and expenditure increased by 10 percent, then by how much percent does his savings increase?

  1. AOption (a)

    30 percent

  2. BOption (b)

    39 percent

  3. COption (c)

    34 percent

  4. DOption (d)

    36 percent

View answer & explanation

Correct answer

Answer: (c)C.

34 percent

Why this answer is correct

Given:

The ratio of expenditure and saving of Lokesh is 7 : 5

Concept:

Income = Expenditure + saving

Calculation:

Let be assume the expenditure and savings of Lokesh is 7x and 5x respectively

⇒ The income of Lokesh = 7x + 5x = 12x

⇒ Now income increased by 20% and expenditure increased by 10%

⇒ New income of Lokesh = (12x) × (1 + 20/100) = (12x) × (120/100) = 72x/5

⇒ New expenditure of Lokesh = (7x) × (1 + 10/100) = (7x) × (110/100) = 77x/10

⇒ New savings of Lokesh = 72x/5 - 77x/10 = (144x - 77x)/10 = 67x/10 = 6.7x

⇒ Lokesh saving increase percentage = (6.7x - 5x)/5x × 100 = 1.7 × 20 = 34%

∴ The required result will be 34%.

Question 58

A solid sphere whose radius is 7 cm is melted and recast into a regular pyramid of the square base. If the height of the pyramid is 22 cm, what is the side of the base of the pyramid?

  1. AOption (a)

    12 cm

  2. BOption (b)

    16 cm

  3. COption (c)

    14 cm

  4. DOption (d)

    15 cm

View answer & explanation

Correct answer

Answer: (c)C.

14 cm

Why this answer is correct

Given:

The radius of the solid sphere is 7 cm

The height of the pyramid is 22 cm

Concept:

The volume of square based pyramid = (1/3) × (The area of base) × Height

The volume of sphere = (4/3) × π × (The radius of the sphere)3

Calculation:

When we recast any solid in another solid then the volume is always the same.

Let be assume the side of the square base of the pyramid is A

⇒ The volume of sphere = (4/3) × (22/7) × (7)3 = (4 × 22 × 49)/3 = 4312/3

⇒ The volume of the pyramid = (1/3) × A2 × 22 = (22A2)/3

⇒  (22A2)/3 = 4312/3

⇒ A2 = 4312/22 = 196

⇒ A = 14 cm

∴ The required result will be 14 cm.

Question 59

A vessel contains 120 litres of a mixture of milk and water in the ratio of 5:3, respectively. If some water is added to this mixture such that the quantity of water and milk become the same in the resultant mixture, then what is the quantity of water is added?

  1. AOption (a)

    15 litres

  2. BOption (b)

    10 litres

  3. COption (c)

    30 litres

  4. DOption (d)

    20 litres

View answer & explanation

Correct answer

Answer: (c)C.

30 litres

Why this answer is correct

Given:

A vessel contains 120 litres of milk and water

Concept:

The total quantity of vessel = Quantity of milk in the vessel + Quantity of water in the vessel

Calculation:

Let be assume x litres of water is added to find the final mixture

⇒ The milk in original mixture = (5/8) × 120 = 75 L

⇒ The water in the original mixture = (3/8) × 120= 45 L

⇒ The new quantity of water in resultant mixture = 45 + x

⇒ 75 = 45 + x        (According to question)

⇒ x = 30

∴ The required result will be 30L.

Question 60

The ratio of present ages of A to B is 7 ∶ 8 and the ratio of present ages of B to C is 2 ∶ 1. If the difference between the present age of A and C is 9 years, then what is the average of the present age of A, B and C?

  1. AOption (a)

    19 years

  2. BOption (b)

    23 years

  3. COption (c)

    21 years

  4. DOption (d)

    17 years

View answer & explanation

Correct answer

Answer: (a)A.

19 years

Why this answer is correct

Given:

The ratio of the present age of A and B is 7 : 8

The ratio of the present age of B and C is 2 : 1

Concept:

If a : b1 and b2 : c, then,

a : b : c = (a × b2) : (b1 × b2) : (b1 × c)

Calculation:

⇒ The ratio of the present age of A, B, and C respectively = 7 : 8 : 4

⇒ Let be assume the present age of A, B, and C is 7x, 8x, and 4x respectively

⇒ 7x - 4x = 9      (According to question)

⇒ 3x = 9

⇒ x = 3

⇒ The average of present age of A, B, and C = (7x + 8x + 4x)/3 = 19x/3

⇒ (19/3) × 3 = 19

∴ The required result will be 19 years.

General English (20 questions)

Question 61

In the following question, four sentences are given out of which three sentences are grammatically incorrect while one is correct. Find out which sentence is grammatically correct and select the appropriate option.

  1. AOption (a)

    The government did not knew when the borders would be reopened.

  2. BOption (b)

    Until there is a vaccine, nothing will be the way it was before.

  3. COption (c)

    It is very important that we continue to following health recommendations.

  4. DOption (d)

    Gatherings will have to have limitations on maintain an adequate safety distance.

View answer & explanation

Correct answer

Answer: (b)B.

Until there is a vaccine, nothing will be the way it was before.

Why this answer is correct

The correct answer is 'Until there is a vaccine, nothing will be the way it was before.'

Key Points

  • Let's explore the options:
  • In statement 1 the error lies in the incorrect usage of the verb 'knew'. The statement is in simple past tense and it is used to denote an action that started in past, finished in past, and has no relation with the present. The negative structure of the simple past tense starts with subject followed by did not and the first form of the verb, thus the usage of 'knew' is incorrect here.
  • In statement 3, the error lies in the incorrect usage of the infinitive. An infinitive is a form of the verb which follows the structure of 'to+ the first form of the verb', therefore the usage of 'following' is incorrect here in the sentence.
  • In statement 4, the error lies in the incorrect usage of verb after the preposition 'on'. Generally, prepositions are succeeded by a noun or gerund. Therefore, the usage of 'maintain' is incorrect in the sentence.
  • Statement 2 is a grammatically and contextually correct statement.
  • Therefore, the correct answer is option 2.

Additional Information

  • Gerund: When the -ing form of verb worked as a noun in a sentence then it is called a gerund.
  • Example: Running is a good habit.

Question 62

Select the most appropriate option to substitute the underlined segment in the given sentence. If there is no need to substitute it, select 'No substitution required'.

India has become an economics giant, the largest democracy ever to exist and one of the most amazing nations anywhere in the world.

  1. AOption (a)

    economy

  2. BOption (b)

    economic

  3. COption (c)

    No substitution required

  4. DOption (d)

    economically

View answer & explanation

Correct answer

Answer: (b)B.

economic

Why this answer is correct

The correct answer is 'economic'.

Key Points

  • The error lies in the incorrect usage of the noun 'economics' before another noun 'giant'.
  • 'Economics' in the sentence is used to qualify the noun 'giant' which is incorrect as it is a name of the subject concerned with the production, consumption, and transfer of wealth therefore, can't be used as an adjective.
  • 'Economic' is an adjective which means relating to economics or the economy.
  • Thus, 'Economics' will be replaced with 'Economic'.

Therefore, the correct sentence is: 'India has become an economic giant, the largest democracy ever to exist and one of the most amazing nations anywhere in the world.'

Confusion Points

  • The word “economically” is an adverb that modifies verbs, adjectives or other adverbs.
  • For example, “He lives economically” means that he spends little money.
  • However, in the given sentence, we need an adjective to modify the noun “giant”.
  • The word “economic” is an adjective that means related to the economy or finances.
  • For example, “He studies economic development” means that he learns about how the economy grows.
  • Therefore, the correct word to use in the sentence is “economic”.

Question 63

Select the wrongly spelt word.

  1. AOption (a)

    Noticeable

  2. BOption (b)

    Necessory

  3. COption (c)

    Ninety

  4. DOption (d)

    Narrative

View answer & explanation

Correct answer

Answer: (b)B.

Necessory

Why this answer is correct

The correct answer is 'Necessory', i.e. it is an incorrectly spelt word.

Key Points

  • Necessory: It is an incorrectly spelt word. The correct spelling is 'Necessary'.
  • Necessary:  required to be done, achieved, or present; needed; essential.
  • Example: The booklet provides all the necessary information about the college.
  • Therefore, the correct answer is option 2.

Additional Information 

  • Let's explore the meaning of other given word:
WordMeaningExample
Noticeableeasily seen or noticed; clear or apparent.Alcohol has a noticeable effect on the body.
Ninetyequivalent to the product of nine and ten; ten less than one hundred; 90.He told me that his grandfather is over ninety.
Narrativea description of events in a story, especially in a novelAt several points in the narrative the two stories cross.

Question 64

Select the most appropriate meaning of the underlined idiom in the given sentence.

I felt like a fish out of water in the company of the youngsters.

  1. AOption (a)

    being uncomfortable

  2. BOption (b)

    feeling exhausted

  3. COption (c)

    being at ease

  4. DOption (d)

    feeling enthusiastic

View answer & explanation

Correct answer

Answer: (a)A.

being uncomfortable

Why this answer is correct

The correct answer is 'being uncomfortable'

Key Points

  • A fish out of water: It is an idiomatic phrase that means to feel uncomfortable because you feel you do not belong in a place or situation
  • Example: I felt like a fish out of water in my new school.
  • Therefore, the correct answer is option 1.

Question 65

Select the most appropriate antonym of the given word.

PERIGEE

  1. AOption (a)

    Pits

  2. BOption (b)

    Apex

  3. COption (c)

    Zero

  4. DOption (d)

    Apogee

View answer & explanation

Correct answer

Answer: (d)D.

Apogee

Why this answer is correct

The correct answer is 'Apogee'.

Key Points

  • Let's explore the meaning of the marked word and the given word.
  • Perigee: the point in the orbit of the moon or a satellite at which it is nearest to the earth..
  • Example: Astronomers love to examine the moon during perigee because it is so close to the earth that they have great visibility even with a poor telescope.
  • Apogee:  the point in the orbit of the moon or a satellite at which it is furthest from the earth.
  • Example: The orbit of the artificial satellite has an apogee of 200 miles from the earth.
  • From above, we can refer that the correct answer is option 4.

Additional Information

  • Let's explore other options:

 

WordMeaningExample
Pitsa hole in the ground, especially one made by diggingThe female digs a pit in which to lay the eggs.
Apexthe most important position in an organization or societyThe king was at the apex of society.
Zeronone at all, or the lowest possible amountMike’s chances of winning are virtually zero.

Question 66

Select the most appropriate option to fill in the blank.

The jury members, consisting of seven women and five men, _______ discharged after failing to reach a verdict.

  1. AOption (a)

    have

  2. BOption (b)

    was

  3. COption (c)

    had

  4. DOption (d)

    were

View answer & explanation

Correct answer

Answer: (d)D.

were

Why this answer is correct

The correct answer is 'were'.

Key Points

  • Two or more nouns when connects with the conjunction 'and' behave as a plural noun or subject and will take plural verb after it according to subject-verb agreement.
  • Subject-verb Agreement: It states that if the subject is singular, then the verb is singular and if the subject is plural then the verb will be plural.
  • Example:
  • He is planning a vacation in Kerala.
  • They are planning a vacation in Kerala.
  • Thus, 'were' will be used in the blank.
  • Therefore, the correct answer is option 4.

Therefore, the correct sentence is: 'The jury members, consisting of seven women and five men, were discharged after failing to reach a verdict.'

Question 67

Select the word which means the same as the group of words given.

One who specializes in the ways diseases spread among people:

  1. AOption (a)

    Pandemonium

  2. BOption (b)

    Epidemiologist

  3. COption (c)

    Endemic

  4. DOption (d)

    Epidemic

View answer & explanation

Correct answer

Answer: (b)B.

Epidemiologist

Why this answer is correct

The correct answer is 'Epidemiologist'.

Key Points

  • Epidemiologist:  One who studies the way diseases spread, and how to control them
  • Example: A leading epidemiologist has called on the WHO to clarify its definition of an influenza pandemic — otherwise too many flu viruses could qualify as pandemic strains, causing undue alarm.
  • Thus, the correct answer is option 2.

Additional Information

  • Let's explore the other options:

 

Group of wordsOne word substitution
wild and noisy disorder or confusion; uproar.Pandemonium
(of a disease or condition) regularly found among particular people or in a certain area.Endemic
a widespread occurrence of an infectious disease in a community at a particular time.Epidemic

Question 68

Select the most appropriate option to fill in the blank.

A statue of Harry Potter, flying a Nimbus 2000 broom was _______ on Wednesday in London’s Leicester Square.

  1. AOption (a)

    withhold

  2. BOption (b)

    unlocked

  3. COption (c)

    unveiled

  4. DOption (d)

    exposed

View answer & explanation

Correct answer

Answer: (c)C.

unveiled

Why this answer is correct

The correct answer is 'unveiled'.

Key Points

  • Let's explore the meaning of the given options:
WordMeaningExample
withholdto refuse to give someone somethingIan was accused of withholding vital information from the police.
unlockedmake (something previously inaccessible or unexploited) available for use.Rockhart says that the critical-success factor approach aims to unlock the manager's implicitly held model of success.
unveiledto show or tell people about a new product or plan for the first timeThe club has unveiled plans to build a new stadium.
exposednot coveredAll exposed skin should be covered with protective cream.
  • Thus, from the above-given explanation, we can say that 'unveiled' will be used in the blank.
  • Therefore, the correct answer is option 3.

Question 69

Select the alternative which best expresses the meaning of the idiom/phrase bold in the sentence.

If you are fair and square in your work you will definitely prosper.

  1. AOption (a)

    Active

  2. BOption (b)

    Honest

  3. COption (c)

    Authoritative

  4. DOption (d)

    Business like

View answer & explanation

Correct answer

Answer: (b)B.

Honest

Why this answer is correct

The correct answer is 'Honest.'

Key Points

  • Fair and square: It is an idiomatic phrase that means honestly and straightforwardly.
  • Example: We won the match fair and square.
  • Therefore, the correct answer is option 2.

Question 70

Select the correctly spelt word

  1. AOption (a)

    Disguisidly

  2. BOption (b)

    Disgiuisedly

  3. COption (c)

    Disgiusedly

  4. DOption (d)

    Disguisedly

View answer & explanation

Correct answer

Answer: (d)D.

Disguisedly

Why this answer is correct

The correctly spelt word is 'Disguisedly'.

Key Points

  • Disguisedly: To modify the manner or appearance of (a person, for example) in order to prevent recognition.
  • Example:  I request administrators to keep a close look on this article and supervise the obeying of WP policies, in order to avoid such disguisedly removals of fact tags added according to policies.
  • Thus, we can say that the correct answer is option 4.

Question 71

Select the most appropriate meaning of the given idiom/ phrase.

Rocket science

  1. AOption (a)

    Get out of control

  2. BOption (b)

    Something overhyped

  3. COption (c)

    Do the thing you've wanted to do so you can move on

  4. DOption (d)

    Something very difficult to understand

View answer & explanation

Correct answer

Answer: (d)D.

Something very difficult to understand

Why this answer is correct

The correct answer is 'Something very difficult to understand'

Key Points

  • Rocket Science: It is an idiomatic phrase that means very complicated or difficult to understand.
  • Usually, it is used in a negative way. 
  • Example: Look, all you need to do is reformat the hard drive on your computer. It isn't rocket science!
  • Therefore, the correct answer is option 4.

Question 72

Rearrange the following sentences in their correct order to form a meaningful paragraph.

P. Iron is an essential mineral, necessary for the several crucial functions of the body.

Q. In addition to the production of haemoglobin, iron helps to keep your hair, skin and nail health.

R. A large number of people across the globe are suffering from the problem of iron deficiency anaemia.

S. Women belonging to the menstruating age group are more prone to this deficiency as compared to others.

  1. AOption (a)

    PQRS

  2. BOption (b)

    QRSP

  3. COption (c)

    SPQR

  4. DOption (d)

    RSPQ

View answer & explanation

Correct answer

Answer: (a)A.

PQRS

Why this answer is correct

The correct answer is 'PQRS'.

Key Points

  • Statement P will be the first in sequence as it introduces the subject of the sentence 'Iron'.
  • Statement Q will follow Statement P as it states that the function of Iron in the body.
  • Statement R will follow statement Q as it states the disease, i.e. 'anaemia' which is caused by the deficiency of haemoglobin.
  • Statement S will be the last part.

Therefore, the correct sequence is PQRS.

  • Sequence:
  • P. Iron is an essential mineral, necessary for the several crucial functions of the body.
  • Q. In addition to the production of haemoglobin, iron helps to keep your hair, skin and nail health.
  • R. A large number of people across the globe are suffering from the problem of iron deficiency anaemia.
  • S. Women belonging to the menstruating age group are more prone to this deficiency as compared to others.

Question 73

In the question given below, rearrange the sentences in the correct order, and choose the correct option. The first and sixth (last) statements are given in the right sequence

and are fixed.

1. It’s widely established that Hitler died in his bunker in Berlin.

P. However, rumours of his escape abound.

Q. These are just rumours, not fact as confirmed by historical records.

R. In late April 1945, as Soviet forces stormed Berlin, Hitler made plans for his suicide, including testing SS-supplied cyanide pills on his dog.

S. Two days earlier, Mussolini had been shot by a firing squad and then publicly hung by his feet in a suburban square in Milan, Italy.

6. A similar fate seemed inevitable for Hitler, which might have prompted him to commit suicide.

  1. AOption (a)

    SRQP

  2. BOption (b)

    PQRS

  3. COption (c)

    PSQR

  4. DOption (d)

    SPQR

View answer & explanation

Correct answer

Answer: (b)B.

PQRS

Why this answer is correct

The correct answer is 'PQRS'.

Key Points

  • Statement P will be follow statement 1 as it introduces a statement which is in contrast with statement 1 and will follow statement 1.
  • Statement Q will follow Statement P as it states that the rumors that are being mentioned in the statement P are not facts.
  • Statement R will follow statement Q as it states the facts that is mentioned in the historical records.
  • Statement S will be the last part.

Therefore, the correct sequence is PQRS.

  • Sequence:
  • 1. It’s widely established that Hitler died in his bunker in Berlin.
  • P. However, rumours of his escape abound.
  • Q. These are just rumours, not fact as confirmed by historical records.
  • R. In late April 1945, as Soviet forces stormed Berlin, Hitler made plans for his suicide, including testing SS-supplied cyanide pills on his dog.
  • S. Two days earlier, Mussolini had been shot by a firing squad and then publicly hung by his feet in a suburban square in Milan, Italy.
    1. A similar fate seemed inevitable for Hitler, which might have prompted him to commit suicide.

Question 74

Select the most appropriate synonym of the given word.

RAMPANT

  1. AOption (a)

    Particular

  2. BOption (b)

    Local

  3. COption (c)

    Restricted

  4. DOption (d)

    Universal

View answer & explanation

Correct answer

Answer: (d)D.

Universal

Why this answer is correct

The correct answer is 'Universal'.

Key Points

  • Let's explore the meaning of the marked word and the given word.
  • Rampant: flourishing or spreading unchecked; uncontrolled or widespread.
  • Example: Corruption soon became rampant.
  • Universal:  including or covering all or a whole collectively or distributively without limit or exception.
  • Example: There does not appear to be universal agreement on the future of the British monarchy.
  • From above, we can refer that the correct answer is option 4.

Additional Information

  • Let's explore other options:

 

WordMeaningExample
Particularspecial or greatYou should pay particular attention to spelling.
Localbelonging or relating to a particular area or neighborhood, typically exclusively so.Polzeath is our local beach, but there are better surfing beaches further away.
Restrictedsmall or limited in size, area, or amountIt’s difficult trying to work in such a restricted space.

Question 75

Identify the segment in the sentence which contains the grammatical error from the given options.

The whole block of flats including two shops were destroyed in fire.

  1. AOption (a)

    including two shops were

  2. BOption (b)

    No error

  3. COption (c)

    destroyed in fire

  4. DOption (d)

    The whole block of flats

View answer & explanation

Correct answer

Answer: (a)A.

including two shops were

Why this answer is correct

The correct answer is 'including two shops were', i.e. the error lies in this part of the sentence.

Key Points

  • The error lies in the incorrect usage of the auxiliary verb 'were'.
  • 'Were' needs to be replaced with 'was'.
  • The subject of the sentence i.e. 'whole block of flats' is a collective noun, and generally, collective nouns are treated as singular, therefore, will take singular verb according to the subject-verb agreement.

Therefore, the correct sentence is: 'The whole block of flats including two shops was destroyed in fire.' 

Additional Information

  • Collective noun: A collective noun is a type of noun that identifies groups of people and things as a single unit. For example, Jury, committee, etc.
  • Subject-verb agreement: It states that if the subject is singular then the verb will be singular and if the subject is plural then the verb will also be plural.
  • Example:
  • He is going to the market.
  • They are going to the market.

Direction: Read the following passage and answer the questions below.

In 490 BC there was a big war between the Persians and the Greeks. Persia was a huge empire, much bigger than Greece. It wanted to capture Athens. The Greek soldiers waited on top of the hill while the Persian army waited on the plain of Marathon below. There were 48,000 Persian soldiers and only 10,000 Greek soldiers. The Greeks sent a messenger, Pheidippides, to Sparta to get help. He ran for two days over the mountains to ask the Spartans. But the Spartans would not fight until there was a full moon. Pheidippides returned to Marathon alone. The Greeks could not wait and attacked the Persian army. The Greeks ran towards the enemy. Persian arrows flew through the air on the Greek soldiers. Despite that, the Greeks won; 6,400 Persians were killed but only 192 Greeks died.

The Persians ran to their ships and tried to escape. They tried to go to Athens to capture the Greek women, children, and old people waiting there. Pheidippides now had another job. He ran 40 kilometers to Athens to tell the Greeks that they had won and to tell them that the Persians were coming. He arrived at the city gates very tired. ‘Rejoice, we conquer!’ he shouted. Then he died. From this great event, the first marathon race of the modern Olympic Games was run in 1896. It was won by a Greek runner, Spiridon Louis. And, like Pheidippides a long time before, he also carried messages. He was a postman.

Question 76

Based on Passage: View directions & passage

Why did the Marathon war break out between Persia and Greeks?

  1. AOption (a)

    because Greece wanted to rule on Persia and increase its power

  2. BOption (b)

    because Persia was very prosperous empire and Greeks wanted its wealth

  3. COption (c)

    because Persia was a huge empire and it wanted to capture Greece

  4. DOption (d)

    because Greece attacked Persia to avenge its defeat from Persians

View answer & explanation

Correct answer

Answer: (c)C.

because Persia was a huge empire and it wanted to capture Greece

Why this answer is correct

The correct answer is 'because Persia was a huge empire and it wanted to capture Greece'.

Key Points

  • Let's refer to the following lines of the passage:
  • In 490 BC there was a big war between the Persians and the Greeks. Persia was a huge empire, much bigger than Greece. It wanted to capture Athens. The Greek soldiers waited on top of the hill while the Persian army waited on the plain of Marathon below.
  • From above, we can refer that the correct answer is option 3.

Question 77

Based on Passage: View directions & passage

The total number of soldier died in this battle was?

  1. AOption (a)

    10000

  2. BOption (b)

    48000

  3. COption (c)

    6592

  4. DOption (d)

    6400

View answer & explanation

Correct answer

Answer: (c)C.

6592

Why this answer is correct

The correct answer is '6592'.

Key Points

  • Let's refer to the following lines of the passage:
  • Despite that, the Greeks won; 6,400 Persians were killed but only 192 Greeks died.
  • Thus, from above we can refer that the correct answer is option 3.

  • The question doesn't mention which side Greece or Persian, therefore, the correct answer will in total 6592 soldiers died.

Question 78

Based on Passage: View directions & passage

Which of the following statements is incorrect according to the given passage?

  1. AOption (a)

    Greek arrows flew through the air on the Persian soldiers.

  2. BOption (b)

    The Persians ran to their ships and tried to escape.

  3. COption (c)

    The first marathon race of modern Olympic was won by a Louis.

  4. DOption (d)

    The Greeks could not wait and attacked the Persian army.

View answer & explanation

Correct answer

Answer: (a)A.

Greek arrows flew through the air on the Persian soldiers.

Why this answer is correct

The correct answer is 'Greek arrows flew through the air on the Persian soldiers.'

Key Points

  • Let's refer to the following lines of the passage:
  • The Greeks could not wait and attacked the Persian army. The Greeks ran towards the enemy. Persian arrows flew through the air on the Greek soldiers.
  • The Persians ran to their ships and tried to escape.
  • From this great event, the first marathon race of the modern Olympic Games was run in 1896. It was won by a Greek runner, Spiridon Louis.
  • Thus, from above we can refer that the correct answer is option 1.

Question 79

Based on Passage: View directions & passage

The messenger, Pheidippides ran 40 kilometres to Athens _______

  1. AOption (a)

    to inform them that they have won the battle against Spartans

  2. BOption (b)

    to send some wealth for their upcoming war with Persians

  3. COption (c)

    to tell the Greeks about their victory and arrival of Persians

  4. DOption (d)

    to tell the Athenians that they must help Spartans in this war

View answer & explanation

Correct answer

Answer: (c)C.

to tell the Greeks about their victory and arrival of Persians

Why this answer is correct

The correct answer is 'to tell the Greeks about their victory and arrival of Persians'.

Key Points

  • Let's refer to the following lines of the passage:
  • Pheidippides now had another job. He ran 40 kilometres to Athens to tell the Greeks that they had won and to tell them that the Persians were coming.
  • From above, we can refer that the correct answer is option 3.

Question 80

Based on Passage: View directions & passage

Why was Pheidippides sent by Greeks to Sparta?

  1. AOption (a)

    to inform them that Persians are coming to attack them

  2. BOption (b)

    to request Spartan not to help Persians in the war

  3. COption (c)

    to get some help from the Spartan against Persians attack

  4. DOption (d)

    to challenge Spartans in the war to free its lost land

View answer & explanation

Correct answer

Answer: (c)C.

to get some help from the Spartan against Persians attack

Why this answer is correct

The correct answer is 'to get some help from the Spartan against Persians attack'.

Key Points

  • Let's refer to the following lines:
  • There were 48,000 Persian soldiers and only 10,000 Greek soldiers. The Greeks sent a messenger, Pheidippides, to Sparta to get help.
  • Thus, from above we can refer that the correct answer is option 3.

General Hindi (20 questions)

Question 81

निम्नलिखित में से शब्द के शुद्ध रूप (वर्तनी) का चयन कीजिए-

  1. AOption (a)

    मासूमियत 

  2. BOption (b)

    मासु���ियत

  3. COption (c)

    मासुमीयत 

  4. DOption (d)

    मासुमयत

View answer & explanation

Correct answer

Answer: (a)A.

मासूमियत 

Why this answer is correct

दिए गये शब्दों में 'मासूमियत' शब्द शुद्ध रूप में लिखा हुआ है, अतः शुद्ध वर्तनी 'मासूमियत' है। 

Key Points

  • मासूमियत का अर्थ - मासूम होने का भाव।
  • अन्य विकल्प इसके शुद्ध रूप में होने के कारण इसके असंगत उत्तर हैं।

Additional Information

वर्तनीलिखने की रीति को वर्तनी कहते हैं। ‘वर्तनी’ शब्द का अर्थ ‘पीछे चलना’ है। अर्थात उच्चारित होने वाले शब्द के लेखन में प्रयोग होने वाले लिपि चिह्नों के व्यवस्थित रूप को वर्तनी कहा जाता है।

Question 82

निम्नलिखित में से लोकोक्ति "खग ही जाने खग की भाषा" का क्या अर्थ है?

  1. AOption (a)

    कोई काम अपने हाथ से करने पर ही ठीक होती है।

  2. BOption (b)

    किसी की शह पाकर ही आदमी अकड़ दिखाता है।

  3. COption (c)

    सब अपने-अपने सम्पर्क के लोगों का हाल समझते हैं।

  4. DOption (d)

    आज के समय में कोई किसी को नहीं समझता।

View answer & explanation

Correct answer

Answer: (c)C.

सब अपने-अपने सम्पर्क के लोगों का हाल समझते हैं।

Why this answer is correct

खग ही जाने खग की भाषा का अर्थ जो जिसकी संगति में रहता है, वही उसकी बात समझाता है।

अतः 'सब अपने - अपने संपर्क के लोगो का हाल समझते है,' यह विकल्प सही है। 

Key Points

  • किसी विशेष स्थान पर प्रसिद्ध हो जाने वाले कथन को 'लोकोक्ति' कहते हैं।
  • उदाहरण- 'उस दिन बात-ही-बात में राम ने कहा, हाँ, मैं अकेला ही कुँआ खोद लूँगा।

Question 83

निम्नलिखित में से कौन-सा वाक्य हेतुहेतुमद भविष्य काल का उदाहरण है?

  1. AOption (a)

    गौरव कार्य कर चुका होगा।

  2. BOption (b)

    गौरव हाल ही में चीन से आया है।

  3. COption (c)

    यदि गौरव खाएगा, तो मोटा हो जाएगा।

  4. DOption (d)

    यदि गौरव दौड़ता, तो रेस जीता जाता।

View answer & explanation

Correct answer

Answer: (c)C.

यदि गौरव खाएगा, तो मोटा हो जाएगा।

Why this answer is correct

दिए गये वाक्यों में से 'यदि गौरव खायेगा, तो मोटा हो जाएगा। यह वाक्य हेतुहेतुमद भविष्य काल का उदाहरण है।

Key Points

कालपरिभाषाउदाहरण
हेतुहेतुमद भविष्य कालजहां क्रिया के भविष्य में हो सकने पर किसी कारण का प्रतिबन्ध दीखता हो, वहां क्रिया के काल को हेतुहेतुमद भविष्य काल कहते हैं।यदि गौरव खायेगा, तो मोटा हो जायेगा

Additional Information

अन्य विकल्प :

कालपरिभाषाउदहारण
पूर्ण वर्तमान कालक्रिया के जिस रूप से कार्य के अभी पूरे होने का पता चलता है। उसे पूर्ण वर्तमान काल कहते है।गौरव हाल ही में चीन से आया हैl
पूर्ण भूतकालकार्य के पूर्ण होने के स्पष्ट बोध को पूर्ण भूतकाल कहते हैं। जिन वाक्यों के अंत में था, थी, थे, चूका था, चुकी थी, चुके थे आदि आते हैं, वो पूर्ण भूतकाल होता है।गौरव कार्य कर चुका होगाl
संदिग्ध भूतकालभूतकाल कि जिस क्रिया के करने या होने के बारे में संदेह हो,उसे संदिग्ध भूतकाल कहते है lयदि गौरव दौड़ता तो रेस जीत जाताl

Important Points

कालपरिभाषाउदाहरण
कालक्रिया के जिस रूप से कार्य के होने का पता चलता है ,उसे काल कहते हैlसीमा हंसती हैl

Question 84

निम्नलिखित में से किस वाक्य में विराम चिन्हों का प्रयोग सही नहीं किया गया है?

  1. AOption (a)

    वह कॉलेज, न जा सका क्योंकि बीमार था। 

  2. BOption (b)

    सुरेश, तुम यही ठहरो।

  3. COption (c)

    आप सम्भवत: आगरा के निवासी है?

  4. DOption (d)

    हे भगवान! दया करो!

View answer & explanation

Correct answer

Answer: (a)A.

वह कॉलेज, न जा सका क्योंकि बीमार था। 

Why this answer is correct

दिए गये विकल्पों में से 'वह कॉलेज न, न जा सका क्योंकि बीमार था।' - इस वाक्य में विराम चिन्हो की त्रुटि है।

  • वह कॉलेज न जा सका क्योंकि वह बीमार था - इस वाक्य में विराम चिन्हों का शुद्ध स्वरूप में प्रयोग किया हुआ है।
  • अन्य सभी विकल्पों में शुद्ध स्वरूप में विराम चिन्हों का प्रयोग किया गया है।

Key Points 

विराम चिन्ह – भाषा के लिखित रूप में विशेष स्थानों पर रुकने का संकेत करने वाले चिन्हों को विराम चिन्ह कहते हैं।

विराम चिन्ह का नामपरिभाषाउदाहरण
पूर्ण विराम चिन्ह (।)जहाँ एक बात पूरी हो जाये या वाक्य समाप्त हो जाये वहाँ पूर्ण विराम ( । ) चिन्ह लगाया जाता है।बाजार खुल गया।
अर्द्ध विराम चिन्ह (;)जहाँ अल्प विराम से कुछ अधिक ठहरते हैं तथा पूर्ण विराम से कम ठहरते हैं, वहाँ अर्द्ध विराम का चिन्ह ( ; ) लगाया जाता है।मुख्य अतिथि आ गए हैं; वह शीघ्र चले जाएंगे।
अल्प विराम चिन्ह (,)वाक्य में जहाँ थोड़ा रुकना हो या अधिक वस्तुओं, व्यक्तियों आदि को अलग करना हो वहाँ अल्प विराम (,) चिन्ह का प्रयोग किया जाता है।राकेश, मोहन, शीतल और पंकज ने यह चित्र बनाया है।
प्रश्नवाचक चिन्ह (?)बातचीत के दौरान जब किसी से कोई बात पूछी जाती है अथवा कोई प्रश्न पूछा जाता है, तब वाक्य के अंत में प्रश्नसूचक-चिन्ह का प्रयोग किया जाता है।तुम्हारी माताजी का नाम क्या है ?
विस्मयादिबोधक चिन्ह (!)इसका प्रयोग हर्ष, विवाद, विस्मय, घृणा, आश्रर्य, करुणा, भय, संबोधन इत्यादि का बोध कराने के लिए इस चिन्ह का प्रयोग किया जाता है।वाह! कितना सुंदर दृश्य है।
लाघव चिन्ह (०)किसी बड़े तथा प्रसिद्ध शब्द को संक्षेप में लिखने के लिए उस शब्द का पहला अक्षर लिखकर उसके आगे शून्य (०) लगा देते हैं। यह शून्य ही लाघव-चिन्ह कहलाता है।डॉक्टर – डॉ०, प्रोफेसर – प्रो०

Question 85

निम्नलिखित में से "साँझ" का विलोम शब्द कौन-सा है?

  1. AOption (a)

    गोधूलि

  2. BOption (b)

    संध्या

  3. COption (c)

    असंयम

  4. DOption (d)

    सवेरा

View answer & explanation

Correct answer

Answer: (d)D.

सवेरा

Why this answer is correct

साँझ शब्द का विलोम 'सवेरा' होता है 

  • साँझ का अर्थ है सायंकाल।
  • सवेरा का अर्थ प्रातः काल, सुबह।

Key Points

अन्य विकल्प

शब्दविलोम
गोधूलिब्राह्ममुहूर्त्त
संध्याउषा
असंयमसंयम

शब्दपरिभाषाउदाहरण
विलोम / विपरीतार्थकविपरीत (उल्टा) अर्थ बताने वाले शब्दों को विलोम शब्द कहते हैं।रात-दिन धरती-आकाश

Question 86

निम्नलिखित में से वाक्य का सही भाववाच्य कौन-सा है?

"पक्षी आकाश में उड़ा।"

  1. AOption (a)

    पक्षी आकाश में उड़ते है।

  2. BOption (b)

    पक्षियों द्वारा आकाश में उड़ा जाता है।

  3. COption (c)

    क्या पक्षी आकाश में उड़ते है?

  4. DOption (d)

    सामान्यतः आकाश में पक्षी उड़ते है।

View answer & explanation

Correct answer

Answer: (b)B.

पक्षियों द्वारा आकाश में उड़ा जाता है।

Why this answer is correct

पक्षी आकाश में उड़ा इस वाक्य का भाववाच्य 'पक्षियों द्वारा आकाश में उड़ा जाता है।'

Key Points

  • क्रिया के जिस रूप में न तो कर्ता की प्रधानता हो न कर्म की, बल्कि क्रिया का भाव ही प्रधान हो, वहाँ भाववाच्य होता है।
  • क्रिया के जिस रूप में कर्म प्रधान हो, उसे कर्मवाच्य कहते हैं।
  • क्रिया के जिस रूप में कर्ता प्रधान हो, उसे कर्तृवाच्य कहते हैं।​

Additional Informationअन्य विकल्प

विकल्पविवरण
पक्षी आकाश में उड़ते है।कर्तृवाच्य
क्या पक्षी आकाश में उड़ते है?प्रश्नवाचक वाक्य
सामान्यत: आकाश में पक्षी उड़ते है।विधानवाचक वाक्य

Important Points

भेदउदाहरण
कर्तृवाच्यरमेश केला खाता है।
कर्मवाच्यकवियों द्वारा कविताएँ लिखी गई।
भाववाच्यमोहन से टहला भी नहीं जाता।

वाच्य की परिभाषाउदाहरण
कर्ता या कर्म या भाव के अनुसार क्रिया का प्रयोग वाच्य कहलाता है।मोहन गाना गाता है। गीता के द्वारा पत्र लिखा जाता है।

Question 87

निम्नलिखित में से कौन-सा शब्द "ओस" का पर्यायवाची नही है?

  1. AOption (a)

    तुषार

  2. BOption (b)

    तुहिनकण

  3. COption (c)

    सारमेय

  4. DOption (d)

    हिमसीकर

View answer & explanation

Correct answer

Answer: (c)C.

सारमेय

Why this answer is correct

दिए गये विकल्पों में से 'सारमेय' शब्द ओस का पर्यायवाची नही है।

Key Points 

अन्य विकल्प:

शब्दपर्यायवाची
सारमेयकुत्ता, कुबेर का एक नाम
ओसनीहार, हिम, प्रालेय, पाला, तुहिन, तुषार, मिट्टिका, शबनम

Additional Information

विशेष:

शब्दपरिभाषाउदाहरण
पर्यायवाचीएक ही अर्थ में प्रयुक्त होने वाले शब्द जो बनावट में भले ही अलग हों, पर्यायवाची या समानार्थी शब्द कहलाते हैं।आग-अनल, पावक, दहन। हवा-समीर, अनिल, वायु।

Question 88

दिए गए वाक्यांश के लिए एक शब्द का चयन कीजिए-

जो किसी वस्तु या व्यक्ति के प्रति आसक्त हो-

  1. AOption (a)

    अनुरक्त

  2. BOption (b)

    अनिमेष

  3. COption (c)

    अनूढा

  4. DOption (d)

    अप्रगल्भ

View answer & explanation

Correct answer

Answer: (a)A.

अनुरक्त

Why this answer is correct

जो किसी वस्तु या व्यक्ति के प्रति आसक्त हो उसके लिए उचित शब्द 'अनुरक्त' होगा।

Key Points

अन्य विकल्प:

एक शब्दवाक्यांश
अनिमेषजिसकी स्थिरदृष्टि हो।
अनूढ़ाअविवाहिता प्रेमिका।
अप्रगल्भजो अपरिपक्व हो।

Additional Information

वाक्यांश- भाषा को सुंदर, आकर्षक और प्रभावशाली बनाने के लिए अनेक शब्दों के स्थान पर एक शब्द का प्रयोग किया जाता है तो वह वाक्यांश के लिए एक शब्द कहलाता है।

Question 89

निम्नलिखित में से कौन-सा शब्द निश्चयवाचक सर्वनाम का उदाहरण है?

  1. AOption (a)

    यह

  2. BOption (b)

    कौन

  3. COption (c)

    कोई

  4. DOption (d)

    कुछ

View answer & explanation

Correct answer

Answer: (a)A.

यह

Why this answer is correct

'बेशक' निश्चयवाचक सर्वनाम का उदाहरण है।

शायद, संभवतः, कदाचित् ये तीनो अनिश्चयवाचक सर्वनाम के उदाहरण है। 

Key Points

स्पष्टीकरण:

सर्वनामपरिभाषाउदाहरण
निश्चयवाचकजो सर्वनाम शब्द किसी व्यक्ति, वस्तु आदि का निश्चयपूर्वक बोध कराते हैं वे निश्चयवाचक सर्वनाम कहलाते हैं।वे, यह, वह

Additional Information

सर्वनामपरिभाषाउदाहरण
पुरुषवाचक (व्यक्तिवाचक)जिस सर्वनाम का प्रयोग वक्ता द्वारा स्वयं के लिए या अन्य व्यक्ति के लिए किया जाता है।मैं, हम, मुझे, तू, तुम, तुझे, तुम्हारा, वह, वे, उसने
निजवाचकजहाँ स्वयं के लिए 'आप, अपना, अपने आप' शब्दों का प्रयोग हो।अपने आप, स्वतः
प्रश्नवाचक सर्वनामजो सर्वनाम शब्द संज्ञा के स्थान पर आकर वाक्य को प्रश्वाचक बनाते हैं।क्या, कौन

 

विशेष:

सर्वनाम - संज्ञा के स्थान पर प्रयुक्त होने वाले शब्दों को सर्वनाम कहते हैं। जैसे - मैं, वह, वे, उन्हें, अपने तुम, हम आदि। हिंदी में सर्वनामों की संख्या 11 है – ‘मैं, तू, आप, यह, वह, जो, सो, कोई, कुछ, कौन, क्या’ आदि। सर्वनाम के छः भेद हैं – निश्चयवाचक पुरुषवाचक (व्यक्तिवाचक) निजवाचक प्रश्नवाचक सर्वनाम अनिश्चयवाचक सम्बन्धवाचक

Question 90

निम्नलिखित में से उस शब्द का चयन कीजिए, जिनका दोनो वचनों में समान रूप रहता है-

  1. AOption (a)

    बाबा

  2. BOption (b)

    रीति

  3. COption (c)

    चिड़िया

  4. DOption (d)

    माता

View answer & explanation

Correct answer

Answer: (a)A.

बाबा

Why this answer is correct

दिए गये विकल्पों में से 'बाबा' शब्द दोनों वचनों में समान रूप से रहता है।

  • रीति का बहुवचन 'रीतियाँ' होता है
  • चिड़िया का बहुवचन 'चिड़ियाँ' होता है
  • माता का बहुवचन 'माताएँ' होता है

Key Points

हिंदी में 'दो' वचन होते हैं - एकवचन तथा बहुवचन। 

वचन - संज्ञा, सर्वनाम, विशेषण और क्रिया के जिस रूप से संख्या का बोध हो उसे वचन कहते हैं।
वचन के दो प्रकार हैं - 1. एकवचन, 2. बहुवचन
वचनपरिभाषाउदाहरण
एकवचनशब्द के जिस रूप से किसी व्यक्ति, वस्तु आदि के एक होने का बोध हो, उसे एकवचन कहते हैंस्त्री, घोड़ा, नदी, रुपया आदि।
बहुवचनशब्द के जिस रूप से एक से अधिक व्यक्तियों या वस्तुओं आदि का बोध हो, उसे बहुवचन कहते हैं।स्त्रियाँ, घोड़े, नदियाँ, रुपए आदि।

Question 91

निम्नलिखित में से कौन-सा सरल वाक्य है?

  1. AOption (a)

    सुजाता ने माना कि दोष उसका है।

  2. BOption (b)

    राजकुमार ने भाई को मार डाला और स्वयं राजा बन गया।

  3. COption (c)

    सुभाष ने टिकट लिया ताकि वह आगरा जा सके।

  4. DOption (d)

    जल्दी न चलने पर पकड़े जाओगे।

View answer & explanation

Correct answer

Answer: (d)D.

जल्दी न चलने पर पकड़े जाओगे।

Why this answer is correct

'जल्दी न चलने पर पकड़े जाओगे' - यह सरल वाक्य का उदाहरण है। 

Key Points

अन्य विकल्प:

  • राजकुमार ने भाई को मार डाला और स्वयं राजा बन गया। यह वाक्य संयुक्त वाक्य का उदाहरण है।
  • सुजाता ने माना कि दोष उसका है। - यह वाक्य मिश्र वाक्य का उदाहरण है।
  • सुभाष ने टिकट लिया ताकि वह आगरा जा सके। यह वाक्य मिश्र वाक्य का उदाहरण है।

Additional Information

स्पष्टीकरण

वाक्यपरिभाषाउदाहरण
सरल वाक्यजिस वाक्य में केवल एक उद्देश्य और एक विधेय हो, उसे सरल वाक्य कहते है।राहुल क्रिकेट मैच देख रहा है।
संयुक्त वाक्यजिस वाक्य में साधारण अथवा मिश्र वाक्यों का मेल संयोजक अवयवों द्वारा होता है, उसे संयुक्त वाक्य कहते हैं।पूनम के पिता कल अशोक के पिता से मिले तथा लम्बी बातचीत की।
मिश्र वाक्यजिस वाक्य में मुख्य उद्देश्य और मुख्य विधेय के अलावा एक या अधिक समापिका क्रियाएँ हों, उसे 'मिश्रित वाक्य' कहते हैं।आपको चाहिए कि नित्य व्यायाम करें।

Question 92

निम्नलिखित में से "सनसनाहट" में कौन-सा प्रत्यय है?

  1. AOption (a)

    सना

  2. BOption (b)

    अहतः

  3. COption (c)

    सन

  4. DOption (d)

    आहट

View answer & explanation

Correct answer

Answer: (d)D.

आहट

Why this answer is correct

सनसनाहट शब्द में 'आहट' प्रत्यय लगा हुआ है। 

  • सनसनाहट का अर्थ सनसन की आवाज।
  • अन्य सभी विकल्पो में प्रत्यय नही है।
  • आहट प्रत्यय वाले शब्द – कड़वाहट, चिकनाहट, घबराहट, सरसराहट, गरमाहट, टकराहट, थरथराहट, जगमगाहट, चिरपिराहट, बिलबिलाहट, गुर्राहट, तड़फड़ाहट आदि।

Additional Information

Question 93

निम्नलिखित में से किस मुहावरे का अर्थ "लज्जित होना" है?

  1. AOption (a)

    औने-पौने करना।

  2. BOption (b)

    उम्र का पैमाना भर जाना।

  3. COption (c)

    एक आंख से देखना।

  4. DOption (d)

    ओस पड़ जाना।

View answer & explanation

Correct answer

Answer: (d)D.

ओस पड़ जाना।

Why this answer is correct

ओस पड़ जाना का अर्थ 'लज्जित होना' होता है।

Key Points

स्पष्टीकरण:-

मुहावरेअर्थवाक्य प्रयोग
ओस पड़ जानालज्जित होनाऑस्ट्रेलिया से एक दिवसीय श्रृंखला बुरी तरह हारने से भारतीय टीम पर ओस पड़ गई।

Additional Information

अन्य विकल्प:-

मुहावरेअर्थवाक्य प्रयोग
औने-पौने करना।जो कुछ मिले उसे उसी मूल्य पर बेच देनारखे रखे यह कूलर अब खराब हो गया है, इसको तुरन्त ही औने–पौने में कबाड़ी के हाथ बेच दो।
उम्र का पैमाना भर जाना।जीवन का अन्त नज़दीक आनावह अब बूढ़ा हो गया है, उसकी उम्र का पैमाना भर गया।
एक आंख से देखना।सबको बराबर समझनाराजा का कर्तव्य है कि वह सभी नागरिकों को एक आँख से देखे।

Question 94

निम्नलिखित में से कौन-सा शब्द यण स्वर संधि का उदाहरण है?

  1. AOption (a)

    भावांतर

  2. BOption (b)

    मध्वालय

  3. COption (c)

    भास्कर

  4. DOption (d)

    यथार्थ

View answer & explanation

Correct answer

Answer: (b)B.

मध्वालय

Why this answer is correct

दिए गये शब्दों में से 'मध्वालय' शब्द यण संधि का उदाहरण है।  

मध्वालय का संधि विग्रह - मधु + आलय = मध्वालय होता है।  

Key Points

संधिपरिभाषाउदाहरण
विसर्ग संधिजब विसर्ग (:) के बाद स्वर अथवा व्यंजन का मेल हो तो उनसे उत्पन्न विकार को, विसर्ग संधि कहते है।जैसे - भा: + कर = भास्कर,  मन:+ भाव = मनोभाव।
यण संधियदि  इ/ई के बाद कोई अन्य स्वर हो, तो ‘य’ बन जाता है, उ/ऊ का ‘व’ तथा ऋ का ‘र’ बन जाता है। यण संधि कहलाता है।जैसे - इ/ई + अ/आ = य/या; यदि+अपि = यद्यपि; अनु + एषण = अन्वेषण।
दीर्घ संधिह्रस्व या दीर्घ अ, इ, उ के बाद यदि ह्रस्व या दीर्घ अ, इ, उ आ जाएँ तो दोनों मिलकर दीर्घ आ, ई और ऊ हो जाते हैं।जैसे - भाव + अंतर = भावान्तर,  यथा + अर्थ = यथार्थ ; देव + ऋषि  = देवर्षि।

Additional Information

संधि - दो शब्दों के मेल से जो विकार (परिवर्तन) होता है उसे संधि कहते हैं। संधि के तीन प्रकार हैं - 1. स्वर 2. व्यंजन और 3. विसर्ग।
स्वर संधिदो स्वरों के मेल से उत्पन्न होने वाले विकार को स्वर संधि कहते हैं। इसके इसके पाँच भेद हैं- दीर्घ, गुण, वृद्धि, यण, अयादि।स्वार्थ =
स्व + अर्थ
व्यंजन संधिव्यंजन के बाद यदि किसी स्वर या व्यंजन के आने से उस व्यंजन में जो विकार / परिवर्तन उत्पन्न होता है वह व्यंजन संधि कहलाता है।दिग्गज = दिक् + गज
विसर्ग संधिविसर्ग के साथ स्वर अथवा व्यंजन के मिलने से जो विकार उत्पन्न होता है, उसे विसर्ग संधि कहते हैं।शिरोमणि = शिर: + मणि

Question 95

निम्नलिखित में से अर्द्धतत्सम शब्द का चयन कीजिए-

  1. AOption (a)

    बच्चा

  2. BOption (b)

    आग

  3. COption (c)

    आखर

  4. DOption (d)

    कारज

View answer & explanation

Correct answer

Answer: (d)D.

कारज

Why this answer is correct

दिए गये विकल्पों में से 'कारज' शब्द अर्द्धतत्सम का उदाहरण है। 

  • ऐसे शब्द जो संस्कृत के अपने मूल स्वरूप से थोङे से विकृत के बाद हिन्दी में अपनाये गये हैं, अर्द्ध तत्सम शब्द कहलाते हैं।
  • जैसे - कार्य से कारज, चूर्ण से चूरन, धैर्य से धीरज।

Key Points

अन्य विकल्प: 

तद्भवतत्सम
बच्चावत्स
आगअग्नि
आखरअक्षर

Additional Information

तत्समऐसे शब्द जो संस्कृत से ज्यों के त्यों लिए गए, तत्सम होते हैं।कूप, उष्ट्र, पंचम आदि
अर्द्ध तत्समऐसे शब्द जो संस्कृत से थोड़ा परिवर्तित होकर हिंदी में आए हैं।कार्य से कारज, धैर्य से धीरज आदि
तद्भवसंस्कृत से हिंदी में आने पर जिन शब्दों का रूप बदल गया हो, तद्भव कहलाते हैं।आग, काम, पाँच आदि।

निर्देश: निम्नलिखित गद्यांश का ध्यानपूर्वक अध्ययन कर प्रश्नों के उत्तर दीजिए-

आदि से ही विकास क्रम में पशुता हमारा जन्मसिद्ध अधिकार है और मनुष्यता हमारे युग-युगान्तर के अनवरत अध्यवसाय से अर्जित अमुल्यनिधि है। इसी से हम अपने पूर्व स्वप्न के लिए, सामंजस्यपूर्ण आदर्श के लिए और उदात्त भावनाओं के लिए प्राण की बाजी लगाते रहे हैं। जब हममें ऐसा करने की शक्ति शेष नहीं रह जाती तब हम एक मिथ्या दम्भ के साथ पशुता की ओर लौट चलते हैं क्योंकि वहाँ पहुँचने के लिए न किसी पराक्रम की आवश्यकता है और न साधन की और पशुता के आदी हो चुके हैं सो अलग। हम अपने शरीर को निश्चेष्ट छोड़कर हिमालय के शिखर से पाताल की गहराई तक सहज ही लुढ़कते चले आ सकते हैं। परन्तु उस ऊँचाई के सहस्त्र अंशो तक पहुँचने में हमारे पाँव काँपने लगेंगे, साँस फूलने लगेगी और आँखों के सामने अँधेरा छा जाएगा, आदि।

Question 96

Based on Passage: View directions & passage

निम्नलिखित में से "पराक्रम" शब्द में उपसर्ग क्या है?

  1. AOption (a)

    प्र

  2. BOption (b)

    आक्रम

  3. COption (c)

    क्रम

  4. DOption (d)

    परा

View answer & explanation

Correct answer

Answer: (d)D.

परा

Why this answer is correct

पराक्रम शब्द में 'परा' उपसर्ग लगा हुआ है 

  • पराक्रम का अर्थ शौर्य या सामर्थ्य होता है
  • परा उपसर्ग विपरीत अर्थ में , जैसे- पराजय और आगे की ओर अर्थ में जैसे- पराक्रमण

Key Points

  • 'प्र' का अर्थ -  अधिक, आगे।
  • 'प्र' उपसर्ग के अन्य शब्द  -  प्रस्ताव, प्राध्यापक, प्राचार्य आदि।

 अन्य  विकल्प -  

शब्दउपसर्ग   युक्त शब्द
क्रमविक्रम, पराक्रम
  • आक्रम ऐसा कोई शब्द नही होता है।

Additional Information

शब्दपरिभाषाउदाहरण
उपसर्गउपसर्ग उस अक्षर या अक्षर   समूह को कहते हैं जो  किसी शब्द के पहले  जुड़कर उसके अर्थ में  परिवर्तन लाता है।जैसे- प्र, सु, अति, अधि, अनु, नि प्र + हार = प्रहार
प्रत्ययशब्द के उपरांत जिस  शब्द का  प्रयोग किया जाता  है   वह प्रत्यय है।जैसे- ता, औना, अन, अत श्रो + ता = श्रोता

Question 97

Based on Passage: View directions & passage

निम्नलिखित में से उपर्युक्त गद्यांश का उचित शीर्षक कौन-सा है?

  1. AOption (a)

    पशुताः मिथ्या दम्भ।

  2. BOption (b)

    मनुष्यता की प्राप्ति।

  3. COption (c)

    मनुष्य का जन्मसिद्ध अधिकार।

  4. DOption (d)

    पराक्रम की आवश्यकता

View answer & explanation

Correct answer

Answer: (b)B.

मनुष्यता की प्राप्ति।

Why this answer is correct

इस गद्यांश में मनुष्यता के बारे में बताया है, अतः 'मनुष्यता की प्राप्ति' सही शीर्षक है। 

Key Points

अन्य विकल्प:

  • पशुता: मिथ्या दंभ - पशुता यह एक प्रकार का झूठा दिखावा है।
  • मनुष्य का जन्मसिद्ध अधिकार - जन्मजात बाते जो मानव से जुडी हुई है।
  • पराक्रम की आवश्यकता - मनुष्य को दुश्मन से बचने के लिए पराक्रम की आवश्यकता है।

Question 98

Based on Passage: View directions & passage

निम्नलिखित में से 'पाताल' का पर्यायवाची शब्द कौन-सा है?

  1. AOption (a)

    आकाश

  2. BOption (b)

    अम्बर

  3. COption (c)

    नागलोक

  4. DOption (d)

    व्योम

View answer & explanation

Correct answer

Answer: (c)C.

नागलोक

Why this answer is correct

पाताल का पर्यायवाची शब्द 'नागलोक' होता है।

Key Points

अन्य विकल्प:-

शब्दपर्यायवाची
पातालअधोलोक, रसातल, पाताल, नीचे का लोक l
आकाशअंबर, अनंत, अंतरिक्ष, अभ्र, आसमान, गगन, दिव, नभ, पुष्कर, व्योम, विष्णुपद, सारंग, फलक

Additional Information

विशेष:

शब्दपरिभाषाउदाहरण
पर्यायवाचीएक ही अर्थ में प्रयुक्त होने वाले शब्द जो बनावट में भले ही अलग हों, पर्यायवाची या समानार्थी शब्द कहलाते हैं।आग-अनल, पावक, दहन। हवा-समीर, अनिल, वायु।

निर्देश: निम्नलिखित गद्यांश का ध्यानपूर्वक अ��्ययन कर प्रश्नों के उत्तर दीजिए-

आदि से ही विकास क्रम में पशुता हमारा जन्मसिद्ध अधिकार है और मनुष्यता हमारे युग-युगान्तर के अनवरत अध्यवसाय से अर्जित अमुल्यनिधि है। इसी से हम अपने पूर्व स्वप्न के लिए, सामंजस्यपूर्ण आदर्श के लिए और उदात्त भावनाओं के लिए प्राण की बाजी लगाते रहे हैं। जब हममें ऐसा करने की शक्ति शेष नहीं रह जाती तब हम एक मिथ्या दम्भ के साथ पशुता की ओर लौट चलते हैं क्योंकि वहाँ पहुँचने के लिए न किसी पराक्रम की आवश्यकता है और न साधन की और पशुता के आदी हो चुके हैं सो अलग। हम अपने शरीर को निश्चेष्ट छोड़कर हिमालय के शिखर से पाताल की गहराई तक सहज ही लुढ़कते चले आ सकते हैं। परन्तु उस ऊँचाई के सहस्त्र अंशो तक पहुँचने में हमारे पाँव काँपने लगेंगे, साँस फूलने लगेगी और आँखों के सामने अँधेरा छा जाएगा, आदि।

Question 99

Based on Passage: View directions & passage

उपर्युक्त गद्यांश के अनुसार, मनुष्य पशुता की ओर कब लौटता है?

  1. AOption (a)

    जब वह एक पशु का जीवन देखता है।

  2. BOption (b)

    जब वह स्वप्न देखना बंद कर देता है।

  3. COption (c)

    जब वह दुसरे लोगों के अत्यधिक स्वप्नों को नही देख पाता है। 

  4. DOption (d)

    जब वह मिथ्या दंभ से भर जाता है।

View answer & explanation

Correct answer

Answer: (d)D.

जब वह मिथ्या दंभ से भर जाता है।

Why this answer is correct

गद्यांश के अनुसार मनुष्य जब वह अपने मिथ्या दंभ से भर जाता है, तभी पशुता से मनुष्यता की ओर मुड़ता है।  

Key Pointsअन्य विकल्प:

  • जब वह एक पशु का जीवन देखता है - इसका अर्थ है कि पशु का चित्र या आचरण उसके ध्यान में आता है।
  • जब वह स्वप्न देखना बंद कर देता है - सपना देखना बंद कर देना।
  • जब वह दूसरे लोगो के अत्यधिक स्वप्नों को नही देख पाता है - दुसरो के सपनो को देख नही पाना।

Question 100

Based on Passage: View directions & passage

उपर्युक्त गद्यांश के अनुसार, कौन-सा कथन सही है?

  1. AOption (a)

    विकास क्रम में मनुष्यता हमारा जन्मसिद्ध अधिकार है और पशुता हमारे युग-युगान्तर के अनवरत अध्यवसाय से अर्जित अमूल्यनिधि है।

  2. BOption (b)

    विकास क्रम में पशुता हमारा जन्मसिद्ध अधिकार है और मनुष्यता हमारे युग-युगान्तर के अनवरत अध्यवसाय से अर्जित निधि है।

  3. COption (c)

    विकास क्रम में मनुष्यता हमारा जन्मसिद्ध अधिकार है और मनुष्पयता ही हमारे युग-युगान्तर के अनवरत अध्यवसाय से अर्जित अमूल्यनिधि है।

  4. DOption (d)

    विकास क्रम में पशुता हमारा जन्मसिद्ध अधिकार है और मनुष्यता हमारे युग-युगान्तर के अनवरत अध्यवसाय से अर्जित अमूल्यनिधि है।

View answer & explanation

Correct answer

Answer: (d)D.

विकास क्रम में पशुता हमारा जन्मसिद्ध अधिकार है और मनुष्यता हमारे युग-युगान्तर के अनवरत अध्यवसाय से अर्जित अमूल्यनिधि है।

Why this answer is correct

विकास क्रम में पशुता हमारा जन्मसिद्ध अधिकार है और मनुष्यता हमारे युग-युगान्तर के अनवरत अध्यवसाय से अर्जित अमूल्यनिधि है।

Key Points

  • यह गद्यांश आधार पर सही वाक्य है।
  • अन्य सभी विकल्प गद्यांश के आधार पर सही नही है।

Discipline 1 (20 questions)

Question 101

Which of the following is/are not considered as an economic activity?

i. a doctor working in a government hospital

ii. a teacher working in a school

iii. a farmer working in the field for his own consumption

iv. domestic work by housewife​

  1. AOption (a)

    Only (i) and (iii)

  2. BOption (b)

    Only (ii)

  3. COption (c)

    Only (iii)

  4. DOption (d)

    Only (iv)

View answer & explanation

Correct answer

Answer: (d)D.

Only (iv)

Why this answer is correct

Correct answer is Domestic work by housewife

Key Points

  • Economic activity includes all those activities that includes production, manufacturing, distribution and consumption of goods and services.
  • These activities can be broadly classified into three categories.
  • Primary activities = It involves extraction of the natural resources or raw materials such as agriculture, forestry, fishing, and mining.
  • Secondary activities = It involves processing and manufacturing of raw materials into finished product such as sugar factory, paper factory.
  • Tertiary activities = It is related to provide services such as healthcare services, education services and tourism.

Additional Information

  • In reference to this question :
  • Doctor working in a government hospital = It is related to tertiary activity as doctor is providing services. So it is an economic activity.
  • Teacher working in a school = It is also a tertiary activity as teacher is providing services in a school. So it is also an economic activity.
  • Farmer working in the field for his own consumption = It is related to primary activity as it is related to farming. So it is also an economic activity.
  • Domestic work by housewife =It is not an economic activity because it is not related to production or manufacturing or distribution of goods and services.

Question 102

Who stated "business is not mere money chasing but it also should aim at serving the community "?

  1. AOption (a)

    Lyndall Urwick

  2. BOption (b)

    Elton Mayo

  3. COption (c)

    Henry Ford

  4. DOption (d)

    Henri Fayol

View answer & explanation

Correct answer

Answer: (c)C.

Henry Ford

Why this answer is correct

Correct answer is Henry Ford

Key PointsAccording to Henry Ford business is not only about money and chasing after money but it should also aim at serving community by following social responsibility practices. A business can grow well and and achieve its desired objectives only by serving the community.

  • Social objectives of business
  • Service to customers = The foremost objectives of business is to provide good quality of products to customers and at reasonable prices.
  • Service to society and community = Business should contribute to healthy and pollution free environment for its citizens. In addition to this business should also contribute in increasing employment, paying regular taxes to government, and contributing to public health.
  • Service to employees = Employees are heart of business so they must be taken care of. Business must provide good working conditions and fair wages to employees.

Question 103

When the goods are imported from one country and the same are exported to another country, such trade is called : 

  1. AOption (a)

    Export trade

  2. BOption (b)

    International trade

  3. COption (c)

    Entrepot trade

  4. DOption (d)

    External trade

View answer & explanation

Correct answer

Answer: (c)C.

Entrepot trade

Why this answer is correct

Correct answer is Entrepot trade

Key Points

Export tradeGoods and services produced or manufactured in domestic country and sold or consumed by foreign country. In this type of trade the businesses or individuals are known as exporters. It is a part of international trade.
International tradeInternational trade means exchange of goods and services between countries. It includes both import and export of goods and services.
Entrepot tradeIt means when goods are imported from one country  and the same are exported to another country with or without any modifications or further processing of goods.
External tradeExternal trade and international trade are terms often used interchangeably. External trade means exchange of goods and services between countries.

Important Points

  • Export = Sale of goods and services from domestic country to foreign country. On this export duty is charged.
  • Import = When goods and services are bought to domestic country from foreign country it is known as import. On this import duty is charged.
  • In case of entrepot trade import duty is not imposed on import of goods.

Confusion PointsInternational trade is a broader term than external trade as international trade plays an important role in development of economies whereas external trade focuses on particular country's  trade relations.

Question 104

Which of the following statements is false about sole proprietorship form of business? 

  1. AOption (a)

    The sole trader is the monarch of business.

  2. BOption (b)

    The proprietor’s personal property can be utilized when the business is in loss. 

  3. COption (c)

    A proprietor’s knowledge and skills in various fields like production, finance, marketing, etc. leads to better functioning.

  4. DOption (d)

    A proprietor is not bound to publish his accounts to the public. 

View answer & explanation

Correct answer

Answer: (c)C.

A proprietor’s knowledge and skills in various fields like production, finance, marketing, etc. leads to better functioning.

Why this answer is correct

Correct answer is A proprietor's knowledge and skill in various fields like production, finance, marketing, etc. leads to better functioning.

Key Points

  • Sole means "one" and Proprietor means "owner". So sole proprietor means single or one owner. It is defined as a form of business organization in which business is owned, controlled and managed by a single person. He is recipient of all the profits and losses generated by business.
  • Suitability= It is suitable for those business which require low amount of capital.
  • Features of Sole Proprietorship
  • Easy formation = sole proprietorship is easy to form as there is no legal formalities and no registration is required except for some business which require license like pharmacy business. It is easy to close the business also at any time by owners choice.
  • Unlimited liability = The owner of such business has unlimited liability means the personal property of the owner can be used to pay off business liability in case if the business has not sufficient funds to pay off debts.
  • No separate legal entity = This type of business has no separate legal entity from that of its owners. Owners and business are considered as one and owners bears all the responsibility of business.
  • Sharing of profit and losses = As he is single owner of the business there is no sharing of profit or losses. He is sole recipient and bearer of all the profit and losses. And all the risk is borne by him only.
  • Control = He is monarch of the business means he has full control over the operations of the business. All the responsibility and decisions lies in the hands of owner himself. He is not bound by any law to publish his accounts to public.

Additional Information

  • Advantages of sole proprietorship
  • Quick decision making as he is the only owner who controls the business.
  • He is not bound to publish his accounts to public so there remains confidentiality of information.
  • Easy to form and close the business.
  • He has the right to all the profits of the company
  • Disadvantages of sole proprietorship
  • Limited resources.
  • Lack of continuity of business as if something happens to the owner the business has to shut down.
  • Unlimited liability.

Question 105

The Indian Partnership Act, 1932 defined partnership as :

  1. AOption (a)

    "A partnership is a form of business organization in which two or more persons up to a maximum of twenty join together to undertake some form of business activity". 

  2. BOption (b)

    "The relation between persons who have agreed to share the profits of business carried on by all or any of them acting for all". 

  3. COption (c)

    "As an association of two or more persons to carry on as co-owners a business for profit". 

  4. DOption (d)

    "A partnership is an arrangement where parties, known as business partners, agree to cooperate to advance their mutual interests".

View answer & explanation

Correct answer

Answer: (b)B.

"The relation between persons who have agreed to share the profits of business carried on by all or any of them acting for all". 

Why this answer is correct

Correct answer is The relation between persons who have agreed to share the profits of business carried on by all and any one of them acting for all.

Key Points Partnership is defined by Indian Partnership Act, 1932, Section 4 as follows "The relation between the persons who have agreed to share the profits of the business carried on by all and acting them for all."

  • ESSENTAL FEATURES OF PARTNERSHIP 
  • Two or more persons = There must be two partners to form a partnership. Following persons are incompetent to contract ; Minor, person of unsound mind and person disqualified by law.
  • Agreement = The agreement can be either written or oral. The written agreement is known as Partnership Deed. It is not compulsory to form a partnership deed. In absence of partnership deed the provisions of  Partnership act, 1932 will apply.
  • Lawful business = A partnership is formed for a lawful business. Business includes trade and profession but not charitable activity.
  • Profit sharing = Decided according to partnership deed. In the absence of partnership it is divided equally among the partners.
  • Business can be carried by all or any one of them acting for all.

​ 

Additional Information

  • Partners = The persons entered into the partnership with one another are known as partners.
  • Firm = All the partners collectively are known as firm.
  • Firm name = The name under which the partnership or business is carried is known as firm name.

Question 106

If a particular partner of a firm represents that another person is also a partner of the firm, and if such a person does not disclaim the partnership relationship even after coming to know about it, such person is called :

  1. AOption (a)

    Dormant partner

  2. BOption (b)

    Partner in profits

  3. COption (c)

    Partner by estoppels

  4. DOption (d)

    Partners by holding out

View answer & explanation

Correct answer

Answer: (d)D.

Partners by holding out

Why this answer is correct

The correct answer is Partners by holding out

Key Points

  • ​Partners by holding out refers to a situation where a person is held out or represented as a partner of a firm by the actions or conduct of one or more existing partners, rather than by their explicit agreement.
  • The concept of partner by holding out is based on the principle of estoppel.
  • Estoppel prevents someone from denying the truth of a representation that has been relied upon by another party and resulted in a change of position by that party.

​ 

Additional Information

  • Dormant partner: A person who is complacent or inactive in a relationship, lacking participation, engagement, or initiative, leading to stagnation or dissatisfaction in the partnership dynamic.
  • Partner in profits: Someone who shares financial gains and losses in a business or venture, contributing resources, expertise, or capital, with a mutual goal of achieving success and maximizing returns.
  • Partner by holding out: A collaborator who contributes by maintaining a position, stance, or resource, often crucial in negotiations or confrontations, leveraging their strength to influence outcomes or preserve interests.

Question 107

Under which of the following corporations does “The Reserve Bank of India” come ? 

  1. AOption (a)

    Registered Company

  2. BOption (b)

    Chartered Company

  3. COption (c)

    Government Company

  4. DOption (d)

    Statutory Company

View answer & explanation

Correct answer

Answer: (d)D.

Statutory Company

Why this answer is correct

The correct answer is Statutory Company

Key Points

  • "The Reserve Bank of India" is a statutory corporation. A statutory corporation is created by a specific law or statute enacted by the government.
  • In the case of the Reserve Bank of India (RBI), it was established by the Reserve Bank of India Act, 1934.
  • The RBI is not a regular registered company or a chartered company. Registered companies are formed under the Companies Act and may be public or private entities, while chartered companies are granted charters by the government but are not specifically created by statute.

Additional Information

  • Registered Company: A legally recognized entity, separate from its owners, with limited liability. It undergoes formal incorporation under the laws of a jurisdiction, adhering to governance and compliance regulations.
  • Chartered Company: A type of corporation granted a royal or government charter for special privileges, often for trade or colonization purposes, during historical periods of exploration and colonization.
  • Government Company: A legal entity owned and operated by the government, typically formed to provide public services or manage public assets, subject to government control and oversight.

Question 108

Which of the following factors does not influence the choice of organization at the time of starting a business unit?

  1. AOption (a)

    The area of operation of the business

  2. BOption (b)

    Governmental controls and regulations

  3. COption (c)

    Increase in tax liability

  4. DOption (d)

    Extent of risk and liability

View answer & explanation

Correct answer

Answer: (c)C.

Increase in tax liability

Why this answer is correct

The correct answer is Increase in tax liability

Key Points

  • ​​Tax implications are important for all businesses, but whether there will be an increase in tax liability depends on various factors such as the chosen organizational structure, the business's profitability, deductions, credits, and changes in tax laws.
  • When starting a business unit, entrepreneurs typically assess the overall tax implications of different organizational forms (sole proprietorship, partnership, corporation, etc.) to determine the most tax-efficient structure.
  • The focus is on minimizing tax liability rather than solely avoiding an increase in tax liability.
  • The goal is to choose a structure that aligns with the business's objectives and provides the most advantageous tax treatment.
  • In contrast, options such as governmental controls and regulations, the extent of risk and liability, and even the area of operation directly impact the choice of organization by influencing legal requirements, operational flexibility, liability protection, and compliance obligations.

Important Points

  • Therefore, while tax considerations are significant, the specific mention of an increase in tax liability may not be the primary driver in selecting the organization at the outset of starting a business unit.

Question 109

This is a document which is issued by the master of the ship or the ship owner or an agent, stating that the goods mentioned in it have been taken on board the ship for transportation as per terms and conditions specified in it. It also serves as a contract of affreightment and as a document of title to the goods. This document is termed as :

  1. AOption (a)

    Bill of Lading

  2. BOption (b)

    Mate’s Receipt 

  3. COption (c)

    Dock’s Receipt

  4. DOption (d)

    Custom Export Pass

View answer & explanation

Correct answer

Answer: (a)A.

Bill of Lading

Why this answer is correct

The correct answer is Bill of lading

Key Points

  • Definition: A bill of lading (B/L) is a legal document issued by the master of the ship, the ship owner, or an agent, acknowledging receipt of goods for shipment aboard a vessel.
  • Purpose: It serves as a receipt for the goods received, indicating that they have been loaded onto the ship for transportation to the specified destination.
  • Functions: A bill of lading is often negotiable, meaning it can be transferred to a third party by endorsement or delivery. As such, it serves as a document of title to the goods, enabling their transfer during transit.
  • Legal Significance: The bill of lading is a crucial legal document in international trade, providing proof of shipment and ownership of goods in transit.

Additional Information 

  • A mate's receipt is a provisional document issued by a ship's officer upon receiving goods for shipment, acknowledging receipt but not serving as a formal contract or title document.
  • A dock's receipt is a temporary acknowledgment issued by a dock authority upon receiving goods, indicating their arrival at the dock but not serving as a formal contract or title document.
  • A custom export pass is a document issued by customs authorities, authorizing the export of goods from a country, ensuring compliance with export regulations and facilitating international trade processes.

Question 110

Which one of the following is not of a benefit of trade liberalisation?

  1. AOption (a)

    Workers gain new employment opportunities

  2. BOption (b)

    For producers and suppliers,markets are enlarged and sales opportunities are increased

  3. COption (c)

    consumers enjoy lower prices and greater choice in products 

  4. DOption (d)

    income disparity and productivity differences

View answer & explanation

Correct answer

Answer: (d)D.

income disparity and productivity differences

Why this answer is correct

The correct answer is income disparity and productivity differences

Key Points

  • Trade liberalization refers to the reduction or removal of barriers to international trade, such as tariffs, quotas, and trade restrictions.
  • The primary goal of trade liberalization is to promote economic growth, increase efficiency, and foster global integration by expanding markets and encouraging competition.
  • Benefits: Workers Gain New Employment Opportunities, Markets Enlarged and Sales Opportunities Increased, Consumers Enjoy Lower Prices and Greater Choice

Additional Information

  • Trade liberalization generally brings about positive outcomes such as job creation, market expansion, and consumer benefits.
  • However, it may not directly address income inequality or productivity differences, which can be influenced by various other factors such as education, social policies, and technological advancements.

Question 111

Which one of the following statements is true ? 

  1. AOption (a)

    India's share in world exports of agricultural commodities is very high

  2. BOption (b)

    USA is the leading market for India's agricultural products. 

  3. COption (c)

    lndia is the fifth largest producer of fruits and vegetables in the world.

  4. DOption (d)

    Indian meat is exported only in frozen form.

View answer & explanation

Correct answer

Answer: (b)B.

USA is the leading market for India's agricultural products. 

Why this answer is correct

The correct answer is USA is the leading market for India's agricultural products.

Key Points

  • In FY 2022-23 India's agricultural exports stood at USD 52.50 billion. The exports to USA stood at USD 5.4 billion with a share of 9.61% of the total agricultural exports.
  • The other leading importers of India's agricultural exports after USA are China, Bangladesh, UAE and Vietnam.
  • India's agricultural sector primarily exports agri & allied products, marine products, plantation and textile & allied products.

Additional Information

  • India is the second largest producer of fruits and vegetables in the world after China which accounts for the largest production of fruits and vegetables globally. As per the second advance estimates for 2022-23 released by Ministry of Agriculture and Farmers Welfare, the total horticulture production is estimated to be 351.92 Million Tonne, surpassing the total woodgrain production of 329.69 Million Tonne during the year.
  • India exports meat in fresh and frozen form. The export of animal meat includes Buffalo meat, Sheep/ Goat meat and other meat. Buffalo meat contribute over 78.65% in total animal products export from India in 2022-23.

Question 112

Which of the following statements is untrue about World Trade Organization (WTO): 

  1. AOption (a)

    Its headquarters is located in Lusanne,Switzerland.

  2. BOption (b)

    It came into existence in 1995

  3. COption (c)

    The only international organisation which deals with the global rules of trade between nations. 

  4. DOption (d)

    WTO is the successor to the General Agreement on Tariffs and Trade (GATT)

View answer & explanation

Correct answer

Answer: (a)A.

Its headquarters is located in Lusanne,Switzerland.

Why this answer is correct

The correct answer is Its headquarters is located in Geneva, Switzerland.

Key Points 

  • WTO came into existence in 1995. From 1948 to 1994, the GATT (an international trade agreement) governed the global trade among member countries. The Uruguay round of GATT led to WTO's creation.
  • WTO is the successor to the GATT. The GATT mainly dealt with trade in goods whereas the WTO services and intellectual property as well.
  • WTO deals with the global rules of trade between nations. Its main function is to ensure that trade runs as smoothly and freely as possible.

Important Points 

  • The WTO has 164 member states and 23 observer governments.
  • India is a founding member of the GATT and its successor WTO.
  • WTO provides a platform for settling trade disputes among the members.
  • The WTO offers development assistance and training to the developing countries.
  • The WTO engages in partnership with other international organisations, non-government organisations and parliamentarians.

Question 113

Match the items of List - II with the items of List - I relating to Methods of Raising Finance and select the code of correct matching. 

List IList II
(a)Short term Capital(i)Issue of equity shares
(b)Medium-term Capital(ii)Clean advance form banks
(c)Long-term Capital(iii)Public deposits
(iv)Factoring
(v.)Discounting of bills
(vi.)Issue of preference shares
  1. AOption (a)

    (a) - (i) (iv) (v) (b) - (ii) (iii) (c) - (iv)

  2. BOption (b)

    (a) - (iv) (v) (b) - (ii) (iii) (c) - (i) (vi) 

  3. COption (c)

    (a) - (iii) (v) (b) - (ii) (c) - (i) (iv)

  4. DOption (d)

    (a) - (iii) (iv) (v) (b) - (ii) (iii) (c) - (i) (iv)

View answer & explanation

Correct answer

Answer: (b)B.

(a) - (iv) (v) (b) - (ii) (iii) (c) - (i) (vi) 

Why this answer is correct

The correct answer is (a) - (iv) (v) (b) - (ii) (iii) (c) - (i) (vi) 

Key Points

  • A company raises capital to fund its long term requirements i.e. fixed capital requirements and short term requirements i.e. working capital requirements.
  • The sources of finance can be categorised on the basis of Time period, Ownership & control and Source of generation.
  • On the basis of time period, the different methods of raising finance are Short -term capital, Medium -term capital and long -term capital.
Sources of financeKey Points regarding Sources of Finance
Short term CapitalShort term capital are those funds which are required for one year and are used for financing the working capital and short term requirements of an organisation. It includes trade credit, accounts payable, factoring services, discounting of bills.
Medium term CapitalMedium term capital refers to that capital which is required to finance the operations of a business for a period of 3 to 5 years. It can be in the form of advance from banks, public deposits, lease financing.
Long term CapitalLong term capital are those funds which are held by an organisation for a period exceeding 5 years. It is in the form of equity share capital, preference share capital, debentures and retained earnings.

​ 

Additional Information

  • Equity shares are issued by a company to raise long term capital. Equity shares represent ownership in a company and the shareholders carry the right to vote and participate in the management of the company. Equity shareholders receive dividends out of company's profits and receive returns in the form of capital appreciation.
  • Public deposits are the funds that are raised directly from the public. Public deposits cater to the short term and medium requirements of a business and usually provide a higher rate of interest and carry higher risk.
  • Preference shares are issued to finance the long term requirements of a company. These shares have a right to receive a fixed rate of dividend and have a preferential right to receive payment of capital before equity shares.
  • Factoring refers to a financial service where a company sells its accounts receivable to a factor at a discounted rate. The factor is responsible for discounting of bills and collecting debts on the behalf of the client.

Question 114

The composition of the total capital consisting partly of long-term funds with fixed charge and partly of ownership funds is known as :

  1. AOption (a)

    Revolving Capital

  2. BOption (b)

    Capital gearing

  3. COption (c)

    Capital Structure

  4. DOption (d)

    Working Capital

View answer & explanation

Correct answer

Answer: (c)C.

Capital Structure

Why this answer is correct

The correct answer is Capital Structure.

Key Points

  • Capital Structure is the combination of debt and equity that is used by a company to fund its operations and accomplish its long- term financial goals.
  • Long- term funds with fixed charge include borrowings and debentures issued by a company.
  • Ownership funds are the total amount that is invested by the owners or shareholders of a company and the accumulated profits that have been reinvested in the business. Owner's funds consist of equity share capital, preference share capital and retained earnings.
  • An optimum capital structure for a company is the one that maximises the value of a company and minimises the cost of capital.

Additional Information

  • Revolving capital refers to the funds that are always available to fund the organisation's operations without the need for additional approvals. Such capital is replenished after use by repaying the amount that has been borrowed.
  • Capital gearing refers to the financial leverage of a company. It is the amount of debt a company has relative to its equity. It is helpful in analysing a company's financial health and risk.
  • Working Capital is the capital required by a firm or a company to meet its day- to-day expenses. It measures the liquidity and short term financial health of a business. Working capital is the difference between current assets and current liabilities of a company.

Question 115

What does the term Underwriting mean?

  1. AOption (a)

    assuring public subscription to the issue of shares. 

  2. BOption (b)

    promise to buy debentures.

  3. COption (c)

    undertaking to subscribe to shares or debentures if public subscription is not adequate

  4. DOption (d)

    promise to buy shares.

View answer & explanation

Correct answer

Answer: (c)C.

undertaking to subscribe to shares or debentures if public subscription is not adequate

Why this answer is correct

The correct answer is Underwriting refers to an undertaking to subscribe to shares or debentures if public subscription is not adequate.

Key Points 

  • Underwriting is an undertaking by the intermediaries to subscribe to the securities i.e. shares or debentures offered by a company if these are not fully subscribed by the public, in case of an underwritten issue.
  • This process facilitates the capital raising goals of a company.
  • Underwriting involves determining the risk and price of a security by an individual, investment banker or a financial institution.
  • An underwriter takes the risk and guarantees the sale of shares by charging a commission at a predetermined cost.

Additional Information

  • According to the Companies Act, when a person or an institution agrees to buy the shares of a company when the public fails to subscribe them, it is called underwriting agreement.
  • As per SEBI guidelines, a public limited company must raise minimum capital i.e. the minimum subscription of shares should not be less than 90 percent of issued capital. And if it fails to do so, the received amount should be refunded back to the public. In order to prevent under subscription of shares, a company underwrites its shares wherein the underwriter promises to subscribe to the shares wholly or partly.

Question 116

Which one of the following statements is true?

  1. AOption (a)

    long-term finance is associated with long-term return on the investment.

  2. BOption (b)

    Long-term finance is generally required for a period of 20 years or more. 

  3. COption (c)

    Long-term finance is not required in all types of business activities -manufacturing, trading as well as transport business, etc.

  4. DOption (d)

    long-term finance can be withdrawn at a short notice

View answer & explanation

Correct answer

Answer: (b)B.

Long-term finance is generally required for a period of 20 years or more. 

Why this answer is correct

The correct answer is Long-term finance is generally required for a period of 20 years or more. 

Key Points 

  • Long-term finance refers to any financial instrument with a maturity exceeding one year, such as bank loans, bonds, leasing, and other forms of debt finance, as well as public and private equity instruments.
  • Maturity is the length of time between the origination of a financial claim and the final payment date.
  • Long-term finance is important for sustainable financial development as it contributes to faster growth, greater welfare, shared prosperity, and enduring stability by reducing rollover risks for borrowers and increasing the availability of long-term financial instruments for households and firms to address their life-cycle challenges.
  • The term of the financing reflects the risk-sharing contract between providers and users of finance, with long-term finance shifting risk to the providers.
  • However, the amount of long-term finance that is optimal for the economy as a whole is not clear, and attempts to actively promote long-term finance have proved challenging and controversial.

Additional Information 

  • While well-functioning markets allow borrowers and lenders to enter into short- or long-term contracts depending on their financing needs, the prevalence of imperfect financial markets in developing economies has led to a considerable scarcity of long-term finance, which impedes investment and growth.
  • Therefore, there are ongoing policy challenges and debates surrounding the promotion of long-term finance, with some advocating for private-public risk-sharing arrangements to mobilize financing for long-term projects

Question 117

What is the unique role of IDBI that is different from other development banks ?

  1. AOption (a)

    It grants loans and advances to companies repayable between 8 to 10 years. 

  2. BOption (b)

    providing financial assistance directly to industrial units, as well as to refinance loans granted by other financial institutions.

  3. COption (c)

    It undertakes underwriting of the public issue of shares and debentures made by companies.

  4. DOption (d)

    It subscribes directly to the issue of shares and debentures made by industrial concerns. 

View answer & explanation

Correct answer

Answer: (b)B.

providing financial assistance directly to industrial units, as well as to refinance loans granted by other financial institutions.

Why this answer is correct

The correct answer is providing financial assistance directly to industrial units, as well as to refinance loans granted by other financial institutions.

Key Points 

  • This is the unique role of IDBI. Unlike some other development banks that might primarily focus on providing direct loans to industrial units or solely on refinancing loans granted by other financial institutions, IDBI has a dual role.
  • It provides financial assistance directly to industrial units, supporting them in their various developmental projects. Additionally, it also acts as a refinancing institution, providing funds to other financial institutions that have already extended loans to industrial units.
  • This dual role allows IDBI to have a broader impact on industrial development by directly facilitating financing as well as supporting the liquidity of the financial system.

Additional Information 

  • IDBI plays a unique role in providing financial assistance directly to industrial units.
  • This means that IDBI directly extends loans and other forms of financial support to industrial enterprises for various purposes such as expansion, modernization, diversification, or setting up new projects.
  • This direct involvement in financing industrial units distinguishes IDBI from other development banks.

Question 118

"______________consists of buying and selling commodities, or securities, or other property, in the hope of a profit from anticipated changes of value" .

  1. AOption (a)

    Initial Margin

  2. BOption (b)

    Margin Trading

  3. COption (c)

    Arbitrage

  4. DOption (d)

    Speculation

View answer & explanation

Correct answer

Answer: (d)D.

Speculation

Why this answer is correct

The correct answer is Speculation

Key Points 

  • "Speculation consists of buying and selling commodities, or securities, or other property, in the hope of a profit from anticipated changes of value."
  • Speculation involves actively buying and selling assets, such as commodities, securities, or other property, with the intention of making a profit.
  • Speculators often engage in trading various types of assets, including commodities like gold or oil, securities such as stocks or bonds, and other forms of property like real estate or currencies.
  • Speculators aim to profit from anticipated changes in the value of the assets they trade. They may analyze market trends, news, or other factors to make educated guesses about future price movements and base their trading decisions on these expectations.

Additional Information 

  • Like arbitrageurs, speculators also operate with the hope of making a profit. However, unlike arbitrage, speculation involves taking on more risk, as speculators are making bets on future price movements rather than exploiting existing price discrepancies.
  • While both speculation and arbitrage involve buying and selling assets with the aim of making a profit, they differ in their approach and risk profile. Arbitrage seeks to exploit price differentials across markets to generate risk-free profits, while speculation involves taking on risk by making directional bets on asset price movements.

Question 119

It is the manager's ability to coordinate all organisational activities and varied interests involved in it. It involves viewing the organisation in its totality and understanding the inter-dependence of its individual parts. Name the managerial skill ? 

  1. AOption (a)

    Human skill

  2. BOption (b)

    Technical skill

  3. COption (c)

    Functional skill

  4. DOption (d)

    Conceptual skill

View answer & explanation

Correct answer

Answer: (d)D.

Conceptual skill

Why this answer is correct

The correct answer is Conceptual skill

Key Points 

  • Conceptual skill involves the ability to see the organization as a whole, understand how its various parts interact, and grasp abstract ideas and complex situations.
  • Managers with strong conceptual skills can analyze situations, identify patterns, formulate strategies, and make decisions that align with the organization's goals.
  • This skill is particularly important for top-level managers who need to develop long-term plans and guide the organization through change.

Additional Information 

  • Human skill refers to the ability to work effectively with people, understanding their behaviors, motivations, and emotions. It involves interpersonal skills, communication, empathy, and leadership.
  • Technical skill refers to the specialized knowledge, expertise, and proficiency required to perform specific tasks or functions within an organization. This could include skills related to a particular field or industry, such as programming, engineering, accounting, or marketing.
  • Functional skill typically refers to the specific skills and knowledge required to perform tasks within a particular functional area of an organization, such as finance, marketing, operations, or human resources.

Question 120

The principle of "Esprit de corps" was listed by : 

  1. AOption (a)

    Ralph Davis

  2. BOption (b)

    Lyndall Urwick

  3. COption (c)

    Henry Fayol

  4. DOption (d)

    Frederick Taylor

View answer & explanation

Correct answer

Answer: (c)C.

Henry Fayol

Why this answer is correct

The correct answer is Henry Fayol

Key Points 

  • "Esprit de corps" is one of these principles, and it refers to the importance of fostering team spirit or a sense of unity and cohesion among individuals within an organization.
  • Fayol emphasized that when employees feel a sense of belonging and camaraderie with their colleagues, they are more likely to work collaboratively, support one another, and strive towards common goals.
  • This sense of unity can lead to higher morale, increased motivation, and improved productivity within the organization.
  • Fayol recognized that building "Esprit de corps" required effective leadership, clear communication, and opportunities for employees to engage in team-building activities and social interactions.
  • Managers play a crucial role in creating a positive work environment where employees feel valued, respected, and connected to the organization and their peers.

Additional Information 

  • Henry Fayol was a French mining engineer and management theorist who is widely regarded as one of the founders of modern management theory. In his seminal work "General and Industrial Management," published in 1916.
  • Fayol introduced fourteen principles of management, which he believed could be applied universally to improve organizational efficiency and effectiveness.

Discipline 2 (20 questions)

Question 121

What is a "POLICY" ?

  1. AOption (a)

    general statements or understandings which guide or channel thinking and action in decision-making. 

  2. BOption (b)

    a set of steps determined in advance and standardised for initiating, carrying through and completing a time-bound activity.

  3. COption (c)

    a unified and critical plan of action to achieve an objective or set of objectives. It is a plan prepared for meeting the challenge posed by the environmental forces. It addresses the 'how' aspects of achieving an objective. 

  4. DOption (d)

    a planned target of performance or the desired end result of an activity which one attempts to realise.

View answer & explanation

Correct answer

Answer: (a)A.

general statements or understandings which guide or channel thinking and action in decision-making. 

Why this answer is correct

The correct answer is general statements or understandings which guide or channel thinking and action in decision-making. 

Key Points 

  • "POLICY" are general statements or understandings which guide or channel thinking and action in decision-making.
  • Policies are essentially guidelines or principles that inform decision-making processes within an organization. They offer clarity on what actions are acceptable or expected in various situations.
  • For example, an organization might have a policy on expense reimbursement, specifying the procedures and limits for employees seeking reimbursement for business-related expenses.

Additional Information 

  • Policies are designed to align with the overall objectives and values of the organization. They reflect the organization's mission, vision, and strategic priorities, guiding employees in their efforts to contribute to organizational success.
  • For instance, a company committed to environmental sustainability may have policies promoting recycling, energy conservation, or eco-friendly procurement practices.

Question 122

Which of the following terms refers to "the number of individuals a manager can effectively supervise." ?

  1. AOption (a)

    Span of Control

  2. BOption (b)

    Chain of Command

  3. COption (c)

    Unity of Command 

  4. DOption (d)

    Leadership

View answer & explanation

Correct answer

Answer: (a)A.

Span of Control

Why this answer is correct

The correct answer is Span of Control

Key Points 

  • Span of control, also known as span of management or span of supervision, refers to the number of subordinates or employees that a manager can effectively oversee, direct, and control within an organization. It essentially defines the extent of a manager's authority and responsibility over a group of individuals.
  • Determining the appropriate span of control is crucial for optimizing organizational efficiency, communication, and decision-making.
  • A span of control that is too narrow may result in bureaucracy, communication bottlenecks, and inefficiency, while a span of control that is too wide may lead to overwhelmed managers, decreased supervision, and reduced accountability.

Additional Information 

  • A narrow span of control means that a manager supervises a smaller number of subordinates. This often results in a more hierarchical structure with multiple layers of management.
  • A wide span of control occurs when a manager supervises a larger number of subordinates. This structure is characterized by fewer layers of management, promoting quicker decision-making, communication, and flexibility.

Question 123

The central task of a manager is to get work done with the cooperation of people for the attainment of organisational objectives. Thus it is the duty of every manager to study the behaviour of people working under him and adopt the necessary techniques to inspire people to cooperate and contribute their best efforts towards organisational goals.

This process is known as :

  1. AOption (a)

    Supervision

  2. BOption (b)

    Leadership

  3. COption (c)

    Motivation

  4. DOption (d)

    Communication

View answer & explanation

Correct answer

Answer: (c)C.

Motivation

Why this answer is correct

The correct answer is Motivation 

Key Points 

  • Motivation is the process of stimulating people to take action and achieve desired outcomes. It involves understanding individuals' needs, desires, and aspirations, and then employing various strategies to encourage and empower them to perform at their best.
  • Managers need to observe and analyze the behavior of the people working under them to understand what motivates them, what challenges they face, and how they respond to different situations.
  • Motivation aims to promote cooperation and collaboration among team members by aligning individual goals with organizational objectives.
  • When individuals are motivated to pursue common goals and share a sense of purpose, they are more likely to work together effectively, share information and resources, and support one another in achieving success.

Additional Information 

  • Ultimately, the purpose of motivation is to drive performance and contribute to the attainment of organizational objectives.
  • By inspiring individuals to exert their best efforts and channeling their energy toward shared goals, managers can enhance organizational productivity, innovation, and success.

Question 124

Choose the false statement about coordination.

  1. AOption (a)

    Coordination between various positions at the same level in the organization is called vertical coordination.

  2. BOption (b)

    Coordination provides unity of action in the organisation.

  3. COption (c)

    The need for coordination increases with an increase in the interdependence between organisational units. 

  4. DOption (d)

    Coordination helps in resolving the conflict of personal goals and orgahisational goals.

View answer & explanation

Correct answer

Answer: (a)A.

Coordination between various positions at the same level in the organization is called vertical coordination.

Why this answer is correct

The correct answer is Coordination between various positions at the same level in the organization is called vertical coordination.

Key Points 

  • Vertical coordination actually refers to the coordination between different levels of hierarchy within an organization, not between various positions at the same level.
  • Coordination between positions at the same level is typically referred to as horizontal coordination.
  • Horizontal coordination ensures that departments or units at the same level within the organization work together effectively to achieve common goals.
  • It involves activities such as sharing information, resources, and best practices, as well as resolving conflicts or disputes between departments.

Additional Information 

  • As organizational units become more interdependent, the complexity of interactions between them rises, necessitating greater coordination to ensure smooth functioning and goal attainment.
  • Coordination ensures that diverse activities and efforts within an organization are harmonized and aligned toward common objectives, thereby promoting unity of action.

Question 125

Which of the following is not a principal goal of planning laid down by Planning Commission of India in 1950 ?

  1. AOption (a)

    To increase production to the maximum possible extent so as to achieve higher levels of national and per capita income.

  2. BOption (b)

    To achieve full employment.

  3. COption (c)

    To establish a socialist pattern of society based on equality and social justice and absence of exploitation. 

  4. DOption (d)

    To nationalise banking and insurance. 

View answer & explanation

Correct answer

Answer: (d)D.

To nationalise banking and insurance. 

Why this answer is correct

The correct answer is To nationalise banking and insurance. 

Key Points 

  • The Planning Commission of India, established in 1950, laid down several principal goals of planning to guide the economic development of the country.
  • Among these goals, the option that is not a principal goal of planning as laid down by the Planning Commission of India in 1950 is To nationalise banking and insurance.
  • While nationalization of key industries and sectors was indeed a significant aspect of India's economic policies in the post-independence period, it was not explicitly listed as one of the principal goals of planning laid down by the Planning Commission in 1950.
  • The nationalization of banking and insurance occurred later, with major banks and insurance companies being nationalized in two phases, in 1969 and 1980, respectively.

Additional Information 

  • The objective was to build a socialist society characterized by equality, social justice, and the elimination of exploitation. This included efforts to reduce income disparities, provide social welfare programs, and promote collective ownership of key sectors of the economy.
  • Achieving full employment was considered essential for equitable economic development and social stability, and it was a central objective of India's planning efforts.
  • The aim was to boost production across various sectors of the economy to raise both national income and per capita income.

Question 126

Which of the following Five Year Plan's basis was formed by the strategy popularly known as the 'Nehru-Mahalanobis Strategy'?

  1. AOption (a)

    Second plan

  2. BOption (b)

    Third plan

  3. COption (c)

    Fifth plan

  4. DOption (d)

    First plan

View answer & explanation

Correct answer

Answer: (a)A.

Second plan

Why this answer is correct

The correct answer is Second plan

Key Points 

  • The 'Nehru-Mahalanobis Strategy' was indeed the basis for the Second Five-Year Plan (1956-1961) in India. This plan, formulated during the tenure of Prime Minister Jawaharlal Nehru and with the guidance of the renowned economist Prasanta Chandra Mahalanobis, emphasized industrialization and economic development through a planned approach.
  • Similar to the First Plan, the Second Five-Year Plan continued to prioritize the development of heavy industries, aiming to build a strong industrial base to support economic growth and reduce dependence on imports.
  • The plan emphasized the role of the public sector in industrial development. State-owned enterprises were established or expanded to lead strategic industries, with the government playing a central role in planning and investment.

Additional Information 

  • The focus remained on the production of capital goods to stimulate growth in other sectors of the economy. Investments were directed towards building infrastructure, expanding industrial capacity, and promoting technological innovation.
  • The Second Plan, like its predecessor, relied on centralized planning and government intervention to allocate resources and guide economic activity. Targets were set for industrial output, employment generation, and social development, with the government playing a proactive role in directing investment and regulating markets.

Question 127

In order to protect consumers from unscrupulous and unethical practices by business people, the Indian Government, from time to time, has enacted different laws.Which one of the following Acts does not come under that list ? 

  1. AOption (a)

    Sales of Goods Act, 1930

  2. BOption (b)

    The Standards of Purchasing and Measures Act, 1956 

  3. COption (c)

    The Drugs and Cosmetics Act, 1940 

  4. DOption (d)

    The Indian Standards Institution Certification Act, 1952

View answer & explanation

Correct answer

Answer: (b)B.

The Standards of Purchasing and Measures Act, 1956 

Why this answer is correct

The correct answer is The Standards of Purchasing and Measures Act, 1956 

Key Points 

  • The Standards of Purchasing and Measures Act, 1956, is primarily concerned with regulating weights and measures used in trade and commerce.
  • It aims to ensure accuracy and uniformity in weights, measures, and weighing and measuring instruments to prevent fraud and deception in commercial transactions.
  • While the Act plays a crucial role in promoting fair trade practices and protecting businesses from unfair competition, its focus is more on standardizing measurements rather than directly addressing consumer protection concerns.

Additional Information 

  • The Sales of Goods Act, 1930, is a significant legislation that governs the sale of goods in India. It regulates various aspects of commercial transactions, including the rights and obligations of buyers and sellers, conditions and warranties, delivery, payment, and remedies for breach of contract.
  • The Drugs and Cosmetics Act, 1940, is a key legislation that regulates the manufacture, distribution, sale, and import of drugs and cosmetics in India. It lays down standards for the quality, safety, and efficacy of pharmaceutical products and cosmetics, ensuring that consumers have access to safe and effective medicines and cosmetic products.
  • The Indian Standards Institution (now known as the Bureau of Indian Standards or BIS) Certification Act, 1952, was enacted to establish a national standards body responsible for formulating and promoting standards across various sectors in India. The Bureau of Indian Standards (BIS) develops standards for products, processes, services, and systems to ensure quality, safety, reliability, and efficiency.

Question 128

According to the Section 2(1) (d) of the Consumer Protection Act, 1986 , the term "consumer" is defined as :

(a) A person who buys any goods for a consideration.

(b) A person who hires or avails of any services for a consideration.

Choose the correct option.

  1. AOption (a)

    only (a)

  2. BOption (b)

    only (b)

  3. COption (c)

    Both (a) and (b) 

  4. DOption (d)

    Neither (a) nor (b)

View answer & explanation

Correct answer

Answer: (c)C.

Both (a) and (b) 

Why this answer is correct

The correct answer is Both (a) and (b) 

 Key Points

  • According to Section 2(1)(d) of the Consumer Protection Act, 1986, the term "consumer" is defined as follows: "a person who buys any goods for a consideration or hires or avails of any services for a consideration."
  • A person who buys any goods for a consideration: This refers to individuals who purchase goods in exchange for payment. Whether it's buying groceries, electronics, clothing, or any other tangible products, individuals who engage in transactions to acquire goods are considered consumers under the Consumer Protection Act.
  • A person who hires or avails of any services for a consideration: This refers to individuals who engage in transactions to obtain services in exchange for payment. Services can include a wide range of intangible offerings, such as healthcare services, legal services, transportation services, educational services, hospitality services, and more. Individuals who hire or avail themselves of such services are also considered consumers under the Consumer Protection Act.

Additional Information

  • The primary objective of the Consumer Protection Act, 1986, is to provide consumers with effective protection against unfair trade practices, unsafe products, and exploitation in the marketplace.
  • It seeks to safeguard consumers' interests by establishing mechanisms for redressal of grievances, promoting consumer awareness, and ensuring access to speedy and inexpensive justice.
  • he CPA covers all goods and services purchased or availed by consumers, irrespective of whether the transaction involves a monetary consideration or not

Question 129

Which of these is not a salient feature of the Consumer Protection Act, 1986 ? 

  1. AOption (a)

    It is indeed a very unique and highly progressive piece of social welfare legislation and is acclaimed as the magna carta of Indian consumers. 

  2. BOption (b)

    It applies to all goods and services unless otherwise expressly notified by the Central Government

  3. COption (c)

    It allows filing of 'class action' comlplaints on behalf of groups of consumers having common interests. 

  4. DOption (d)

    The hallmark of the ACT is that it has not set a time-frame for the disposal of cases.

View answer & explanation

Correct answer

Answer: (d)D.

The hallmark of the ACT is that it has not set a time-frame for the disposal of cases.

Why this answer is correct

The correct answer is The hallmark of the ACT is that it has not set a time-frame for the disposal of cases.

Key Points 

  • A key feature of the Consumer Protection Act, 1986, is its emphasis on expeditious disposal of consumer complaints. While the Act does not specify an exact time-frame for the disposal of cases, it mandates that consumer disputes be adjudicated promptly and efficiently by the consumer forums established under the Act.
  • These forums are required to prioritize the resolution of consumer grievances and ensure timely justice for aggrieved consumers.
  • The Consumer Protection Act, 1986, is indeed considered a landmark legislation in India, aimed at protecting the rights of consumers and promoting fair trade practices. It is often referred to as the "magna carta" of Indian consumers due to its significance in safeguarding consumer interests.

Additional Information 

  • The Consumer Protection Act, 1986, applies to all goods and services, including both tangible goods and intangible services, unless specifically exempted by the Central Government. This broad applicability ensures that consumers are protected across various sectors and transactions.
  • One of the notable features of the Consumer Protection Act, 1986, is the provision for filing "class action" complaints, also known as representative or collective complaints, on behalf of groups of consumers with common interests. This mechanism allows consumers to collectively seek redressal for grievances arising from unfair trade practices or deficiencies in goods or services.

Question 130

Which of these persons can file a complaint under the Consumer Protection Act, 1986 :

(a) any voluntary consumer association, registered under the Companies Act, 1956 or under any other law for the time being in force

(b) a consumer

(c) the central government

(d) one or more consumers, where there are numerous consumers having the same interest.

(e) any state government

  1. AOption (a)

    Only (a)

  2. BOption (b)

    Only (a), (b), (d)

  3. COption (c)

    (a), (b), (c), (d), (e) 

  4. DOption (d)

    Only (a), (b), (c)

View answer & explanation

Correct answer

Answer: (c)C.

(a), (b), (c), (d), (e) 

Why this answer is correct

The correct answer is (a), (b), (c), (d), (e) 

 Key Points

  • Consumer associations are organizations formed with the primary objective of advocating for consumer rights and interests. These associations may be registered under various laws, including the Companies Act, 1956, or other relevant laws governing non-profit organizations.
  • Individual consumers who purchase goods or avail services for a consideration are granted specific rights and protections under the Consumer Protection Act, 1986.
  • The central government, as the highest administrative authority at the national level, has a significant role in ensuring consumer protection and promoting fair trade practices across the country.
  • The Consumer Protection Act, 1986, allows for the filing of class action complaints, also known as representative or collective complaints, by one or more consumers on behalf of a group of consumers with common interests.
  • Similar to the central government, state governments also play a crucial role in enforcing consumer protection laws and regulations within their respective states.

Additional Information 

  • The Consumer Protection Act (CPA), 1986, is a landmark legislation in India that aims to protect the rights of consumers and ensure fair and efficient functioning of markets.
  • The primary objective of the Consumer Protection Act, 1986, is to provide consumers with effective protection against unfair trade practices, unsafe products, and exploitation in the marketplace.
  • It seeks to safeguard consumers' interests by establishing mechanisms for redressal of grievances, promoting consumer awareness, and ensuring access to speedy and inexpensive justice.

Question 131

What is the objective of The MRTP Act, 1969?

(a) No monopolies

(b) To ensure that the operation of the economic system does not result in the concentration of economic power to the common detriment

(c) To prohibit restrictive and unfair trade practices, which are prejudicial to public interest

  1. AOption (a)

    Only (a)

  2. BOption (b)

    Only (b) 

  3. COption (c)

    Only (c) 

  4. DOption (d)

    All (a) (b) (c) 

View answer & explanation

Correct answer

Answer: (d)D.

All (a) (b) (c) 

Why this answer is correct

The correct answer is All (a) (b) (c) 

 Key Points

  • The Monopolies and Restrictive Trade Practices (MRTP) Act, 1969, was enacted with the primary objective of regulating monopolistic practices and preventing the concentration of economic power in the hands of a few entities.
  • One of the key objectives of the MRTP Act, 1969, is to prevent the formation and perpetuation of monopolies in the market. Monopolies occur when a single seller or a group of sellers dominate the market, allowing them to control prices, restrict competition, and exploit consumers.
  • Another objective of the MRTP Act, 1969, is to prevent the concentration of economic power in the hands of a few individuals or entities to the detriment of society at large. Concentration of economic power can lead to unfair market practices, exploitation of consumers, and distortions in the allocation of resources.
  • Additionally, the MRTP Act, 1969, aims to prohibit restrictive and unfair trade practices that are detrimental to public interest.

Additional Information 

  • The MRTP Act, 1969, sought to regulate monopolistic practices by prohibiting the formation and abuse of monopoly power in the market. Monopolies occur when a single seller or a group of sellers control a significant portion of the market, enabling them to dictate prices, restrict competition, and exploit consumers.
  • The Act aimed to prevent such monopolistic behavior and promote competition in the market.

Question 132

A ___________in relation to any goods means a person who sells or distributes any goods for sale.

  1. AOption (a)

    Manufacturer

  2. BOption (b)

    Trader

  3. COption (c)

    Seller

  4. DOption (d)

    Buyer

View answer & explanation

Correct answer

Answer: (b)B.

Trader

Why this answer is correct

The correct answer is trader

Key Points 

  • A trader specifically refers to a person or entity involved in the buying and selling of goods for profit. Traders typically engage in commercial activities on a regular basis and may operate as wholesalers, retailers, distributors, or importers/exporters.
  • They buy goods from manufacturers or suppliers and sell them to consumers or other businesses, thereby facilitating the movement of goods in the market.
  • A manufacturer is a person or company that produces or manufactures goods. Manufacturers are involved in the process of transforming raw materials or components into finished products through various manufacturing processes. While manufacturers may sell goods directly to consumers, they may also distribute their products through traders, wholesalers, or retailers.

Additional Information

  • A buyer is a person or entity that purchases goods from a seller or trader. Buyers acquire goods for personal use, consumption, or further resale. While buyers play a crucial role in the market by creating demand for goods, they are not typically involved in the sale or distribution of goods to others.
  • A seller is a broad term that can refer to anyone who transfers ownership of goods to another party in exchange for payment. While sellers can include traders, they may also include manufacturers, wholesalers, retailers, or individuals engaged in occasional sales.

Question 133

What is a "BANK RATE" ? 

  1. AOption (a)

    the rate of interest charged by the RBI on loans to Commercial banks

  2. BOption (b)

    the rate of interest charged by the RBI on loans to Agricultural banks

  3. COption (c)

    the rate of interest charged by the RBI on loans to State banks

  4. DOption (d)

    the rate of interest charged by the RBI on loans to Government of India 

View answer & explanation

Correct answer

Answer: (a)A.

the rate of interest charged by the RBI on loans to Commercial banks

Why this answer is correct

The correct answer is the rate of interest charged by the RBI on loans to Commercial banks

Key Points 

  • When commercial banks need additional funds to meet their reserve requirements or to manage liquidity shortages, they can borrow from the central bank.
  • The rate at which the central bank lends money to commercial banks is known as the bank rate. It serves as a benchmark for the interest rates that commercial banks charge on loans to their customers.
  • The RBI adjusts the bank rate as part of its monetary policy to influence the money supply in the economy, control inflation, and stimulate or cool down economic activity.

Additional Information 

  • If the RBI wants to increase the money supply and stimulate economic growth, it may decrease the bank rate. Lowering the bank rate makes it cheaper for commercial banks to borrow from the central bank, encouraging them to borrow more and, in turn, lend more to businesses and consumers.
  • if the RBI wants to reduce inflationary pressures or control excessive lending, it may raise the bank rate. Increasing the bank rate makes borrowing from the central bank more expensive for commercial banks, leading to higher interest rates on loans to businesses and consumers. This, in turn, can help curb excessive borrowing and spending in the economy.

Question 134

Choose the correct statement .

  1. AOption (a)

    Foreign direct investment is an investment where the foreign party retains control over the investment. 

  2. BOption (b)

    GDRs is a convertible bond. 

  3. COption (c)

    FCCBs cannot be converted into GDRs.

  4. DOption (d)

    Portfolio investment is an investment where the foreign party does not seek control over the investment.

View answer & explanation

Correct answer

Answer: (a)A.

Foreign direct investment is an investment where the foreign party retains control over the investment. 

Why this answer is correct

The correct answer is Foreign direct investment is an investment where the foreign party retains control over the investment. 

Key Points 

  • Foreign direct investment (FDI) involves a foreign entity making an investment in a business or entity located in another country, with the intent to establish significant control or influence over the invested entity.
  • This control can be achieved through various means, such as acquiring a substantial ownership stake, influencing management decisions, or participating in strategic planning.

Additional Information 

  • In FDI, the foreign investor typically seeks to have a long-term relationship with the invested entity and may actively participate in its operations and management.
  • This is in contrast to portfolio investment, where the investor seeks primarily to earn financial returns without necessarily exerting control or influence over the invested entities.

Question 135

According to whom "Statistics are numerical statements of facts in any department of enquiry placed in relation to each other" ?

  1. AOption (a)

    Yule and Kendall

  2. BOption (b)

    Bowley

  3. COption (c)

    Webster

  4. DOption (d)

    Thomas Malthus 

View answer & explanation

Correct answer

Answer: (b)B.

Bowley

Why this answer is correct

The correct answer is Bowley

Key Points 

  • The quote "Statistics are numerical statements of facts in any department of enquiry placed in relation to each other" is attributed to the British statistician and scholar Sir Arthur Lyon Bowley.
  • Bowley was a prominent figure in the field of statistics in the late 19th and early 20th centuries and made significant contributions to the development and application of statistical methods.

Additional Information 

  • Statistics serve as a tool for making sense of data in a structured and meaningful way.
  • By placing numerical facts in relation to each other, statisticians can uncover insights, make informed decisions, and communicate findings effectively.
  • Whether it's calculating the average income of a population, analyzing the effects of a new drug on patient outcomes, or predicting future trends based on historical data, statistics play a vital role in advancing knowledge and understanding in all areas of inquiry.

Question 136

Which of these is a method of collecting primary data ?

  1. Personal Interviewing
  2. Schedule
  3. Through Local Reports and Correspondents
  1. AOption (a)

    Only 1

  2. BOption (b)

    Only 2

  3. COption (c)

    Only 3

  4. DOption (d)

    All 1, 2, 3 

View answer & explanation

Correct answer

Answer: (d)D.

All 1, 2, 3 

Why this answer is correct

Correct answer is ALL 1, 2, 3

Key Points

  • Primary data = Primary data is that data which is collected directly from the sources through various methods. The data that is collected is original in nature. It is costly and can be used only for the specific research work.
  • Methods of collecting primary data
  • Direct personal observation
  • Meaning = In this method of primary data collection there is personal or face to face interview of the person from whom the information is to be obtained. Thus the information collected is more original and reliable as compared to other methods but on the other hand it is costly and there is possibility of biasness.
  • Suitability = This method is suitable for intensive study and where data collected is of less number of people.
  • Information through schedules in charge of enumerators 
  • Meaning = In this method schedules are sent through enumerators. The enumerators contact the informants and questions given in the schedule and fill them in their own handwriting. It can be adopted where the informants are illiterate but training is required for the enumerators and there is possibility of biasness among the enumerators.
  • Suitability = It is used where high rate of response is required.
  • Mailed questionnaire method
  • Meaning = In this method the questionnaire is prepared and sent to many informants through mail or by post. Request is made to informants to fill this questionnaire and sent it again in the specified time period. Can be easily adopted in case of extensive surveys and is less costly but it is not suitable for illiterate persons.
  • Suitability = This method is used for the extensive survey means that surveys in which the informants are spread over a large part of area.
  • Indirect oral investigation 
  • Meaning = In this type of investigation the interviewer contacts the third party called witness to find the information about the informants. It is generally adopted in those cases where the information is of complex nature.
  • Suitability = It is used in those cases where there indirect information is required to be tapped because direct sources do not exist or if exist they are not reliable.

Question 137

A graph of frequency distribution depicting cumulative frequencies is :

  1. AOption (a)

    Historiagram

  2. BOption (b)

    Mixed Graph 

  3. COption (c)

    Ogive

  4. DOption (d)

    Whiskers Graph 

View answer & explanation

Correct answer

Answer: (c)C.

Ogive

Why this answer is correct

Correct answer is Ogive

Key Points

  • Histogram = Histogram is a method to represent the frequency distribution graphically. A histogram is a set of vertical bars whose areas are proportional to the frequencies represented. While constructing histogram the variable are shown on the X axis and the frequencies depending is shown on the Y axis. Histogram cannot be constructed in case the distribution with open ended classes.
  • Mixed graph = A mixed graph is that graph that combines two or more graphs to represent various data sets. For example a combination of line graph and bar graph and it will provide a more comprehensive view of data. A mixed graph is used for time series data and in context of frequency distributions it can be used for categorical and continuous data both.
  • Ogives = Ogives are also known as cumulative frequency curves. The curve obtained by plotting the cumulative frequencies is called an ogive. Ogives can be used to compare the two or more frequencies. There are two methods to construct ogives that are less than method and more than method.
  • Whisper's graph = Whisper's graph are also known as box plot, it is a statistical representation of a distributions of data. It helps to study the skewness and spread of the data. It is used for both grouped and ungrouped frequency distributions.

Question 138

___________ which was originally used to measure the distribution of wealth and income; is now also used to study the distribution of profits, wages and turnover, etc. It is a graphic method of studying dispersion. It is a double cumulative percentage graph used in determining the extent of inequalities of items.

  1. AOption (a)

    Lorenz Curve

  2. BOption (b)

    Frequency curve

  3. COption (c)

    Bell curve

  4. DOption (d)

    Reverse Curve 

View answer & explanation

Correct answer

Answer: (a)A.

Lorenz Curve

Why this answer is correct

Correct answer is Lorenz curve

Key Points

  • Lorenz curve = It was introduced by Max O Lorenz. It is a graphic method of studying dispersion. Earlier it was used only to measure the distribution of income and wealth but now it is also used for various purposes like distribution of profits, wages, turnover etc. It is double cumulative percentage graph used in determining the extent of inequalities of items like inequality of distribution of income of wealth among the people.
  • As Lorenz curve is chose to diagonal line it becomes even or it is also called line of equal distribution. This diagonal line will make an angle of 45 degree and any point on this line will show the equal percentage on X axis as on Y axis. For example if the graph is about the population and distribution of income and there is 45 degree of line than it indicates that the income is equally or evenly distributed among the population.

Question 139

Choose the false statement.

  1. AOption (a)

    The only purpose of measuring dispersion is to assess the reliability of an average.

  2. BOption (b)

    Variability itself may be some times used in decision making.  

  3. COption (c)

    Comparison of two sets of data can only be done by relative measures of dispersion. 

  4. DOption (d)

    A good measure of dispersion should preferably use all the items of the data.

View answer & explanation

Correct answer

Answer: (a)A.

The only purpose of measuring dispersion is to assess the reliability of an average.

Why this answer is correct

Correct answer is The only purpose of measuring dispersion is to assess the reliability of an average.

Key Points

  • Dispersion = Dispersion measures the extent to which the items vary from the central value. Dispersion is also known as scatter, variation and spread of data.
  • Importance of measuring variation
  • To determine the reliability of an average but this is not the only purpose of dispersion.
  • To control the variability and it can be used to make decisions.
  • Dispersion helps to compare two or more series with regard to their variability.
  • Properties of good measure of variation
  • It should be easy to compute and understand
  • It should be rigidly defined
  • It should be based on each and every item of the distribution
  • It should not be unduly affected by extreme items

Question 140

A document issued by Reserve Bank of India on behalf of the Central Government for meeting its temporary deficits and financing the expenditure, is known as --

  1. AOption (a)

    Commercial bill

  2. BOption (b)

    Treasury bill

  3. COption (c)

    Money bill

  4. DOption (d)

    Short-term liability bill

View answer & explanation

Correct answer

Answer: (b)B.

Treasury bill

Why this answer is correct

Correct answer is Treasury bill

Key Points

  • Commercial bills = Commercial bills are also known as trade bills which are short term negotiable instruments used in business transactions. It is an unsecured bill which is issued by the seller on the buyer for the value of goods and services. These in turn are accepted and discounted by the commercial banks and came to be known as commercial bills.
  • Treasury bills = It is a document issued by the RBI on behalf of the central government for meeting its temporary deficits and financing the expenditures. It is highly secured and liquid because guarantee of repayment is assured by the RBI. It is usually issued for 91 days that's why it is a short term instrument.
  • Money bill = Money bill is that bill which deals with the national taxation and public expenditures. Money bills broadly apply to financial matters, including taxation, government spending, loans and other matters of national budget.
  • Short term liability bill = Short term liability bills include the accounts payable, outstanding liabilities, short term bank loans etc. These short term liabilities are used by the business in their normal course of operations to defer the payment and these type of liabilities should be paid within an accounting year.

Discipline 3 (20 questions)

Question 141

Read the Assertion and Reasoning and select the correct option.

Assertion (A): The Reserve Bank of India is the apex organisation in the Indian money market.

Reasoning (R): In April, 1988, it set up the Discount and Finance House of India (DFHI) to perform the function of stablising the money market in India.

  1. AOption (a)

    (A) and (R) both are correct ; and (R) is the right explanation of (A).

  2. BOption (b)

    (A) and (R) both are correct ; but (R) is not the right explanation of (A).

  3. COption (c)

    Both (A) and (R) are incorrect.

  4. DOption (d)

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

View answer & explanation

Correct answer

Answer: (b)B.

(A) and (R) both are correct ; but (R) is not the right explanation of (A).

Why this answer is correct

Correct answer is (A) and (R) both are correct ; but (R) is not the right explanation of (A).

Key Points

  • Assertion (A) = This is true as the Reserve Bank of India is the apex organization in the Indian money market. It is the central bank of India which was established in the year 1935. It is responsible for formulating and implementing the monetary policy in the country. The bank helped set up various institutions like Deposit Insurance and Credit Guarantee Corporation of India, Unit trust of India, Industrial Development Bank of India, National Bank for Agriculture and Rural Development and the Discount and Finance House of India for different purposes to fulfill.
  • Reasoning (R) = The reasoning is true but it is not the right explanation of (A). In April 1988 the RBI set up the Discount and Finance House of India as a specialized financial institution to perform the functions of stabilizing the money market in India. In 2004 RBI transferred its complete holdings to the State Bank of India.​

Additional Information

  • Functions of Reserve Bank of India
  • Monopoly of issue of notes = RBI has the monopoly of the issue of notes for controlling the money and banking system in country. One rupee notes are issued by the finance department and not by RBI.
  • Banker's bank = RBI is the apex of all the banks of the country. No bank can establish and liquidate without the permission of the RBI.
  • Banker to the government = It manages the public debt for the government and provide loans to the government.
  • Management of foreign exchange = RBI manages the foreign exchange and is solely responsible for the preserving the safely valuable reserves.
  • Reserve bank and agricultural credit = RBI has the special responsibility of agriculture financing. Agriculture department was set up by the RBI to fulfill the financing responsibility.
  • Industrial finance by RBI = RBI also provides finance to various industries for industrial development of the country for this industrial credit department has been set up by the RBI.

Question 142

Which of these is/are the method of making Capital Issue :

a) Offer for sale

b) Private placement

c) Rights issue

d) Bid and Offer

  1. AOption (a)

    Only (a), (d)

  2. BOption (b)

    Only (a), (b), (d)

  3. COption (c)

    Only (a), (c), (d)

  4. DOption (d)

    Only (a), (b), (c) 

View answer & explanation

Correct answer

Answer: (d)D.

Only (a), (b), (c) 

Why this answer is correct

Correct answer is Only (a), (b), (c)

Key Points

  • Capital issue = Capital issue is the issue of shares by the company to raise funds to finance for its operations, expansion and various initiatives. Share capital means the ownership in the firm and stake in assets and profits of the investors. Companies uses various methods to issue the capital
  • Offer for sale = A company may offer shares its listed shares to the public at an agreed price. This method is cost effective.
  • Private placement = In this method the company sells the shares to some private institutions who further sells them to the clients rather than public. This is a cost effective method to issue capital.
  • Right issue = In right issue the existing shareholders are given the right to purchase the share at a discounted price. It prevents the dilution of ownership caused by the issuance of the shares to the external investors.
  • Bonus issue = A bonus issue is an offer given to existing shareholders to subscribe for the additional shares. Bonus shares are accumulated earnings of the company which is not given in the form of dividend but are issued as shares.
  • Bid and offer = This is not related to the issue of the capital. This term is related to the stock market. Here bid means the price selected by the buyer to buy a particular stock whereas offer means the price offered by the seller to sell the stock.

Question 143

Inside trading refers to trading in the scripts of a company by persons having access to___________ price sensitive information to make private gains or reduce losses. 

  1. AOption (a)

    published

  2. BOption (b)

    unpublished

  3. COption (c)

    analysed

  4. DOption (d)

    synthesized

View answer & explanation

Correct answer

Answer: (b)B.

unpublished

Why this answer is correct

Correct answer is Unpublished

Key Points

  • Insider trading refers to buying and selling of security by someone who has access to non public, material and unpublished information about that security to make private gain and reduce losses. This practice is illegal because it gives individual an unfair advantage in the market. Non public or material information is any information that could affect the investors decision to buy and sell a security.
  • Disadvantages of insider trading
  • Company looses the investors confidence = By doing the insider trading through the employees or the shareholders or any other person in the company the investor who is about to invest in the company might loose the confidence in the company and do not invest.
  • There is unfair competition in the market = By insider trading there will be unfair advantage to some people who have that material and unpublishes information about the security and other people who are deprived of that information might get losses.
  • Insider traders can distort the market prices = Insider trading might distort the market prices by providing certain material information to some individual which is not available to the public. Through this material information they can move the stock price and can take unfair advantage of that.

Question 144

In which of the following streams was Classical theory of organisation developed ?

  1. Bureaucracy
  2. Administrative Theory
  3. Scientific Management
  1. AOption (a)

    Only 1

  2. BOption (b)

    Only 2

  3. COption (c)

    Only 3

  4. DOption (d)

    All 1, 2, 3

View answer & explanation

Correct answer

Answer: (d)D.

All 1, 2, 3

Why this answer is correct

Correct answer is All 1, 2, 3

Key Points

  • The classical theory of organization was developed on the three main streams which are Fredrik Taylor's scientific management theory, Max Weber's bureaucracy theory and Henri Fayol's administrative theory.
  • Fredrik Taylor's scientific management theory = Scientific management means discarding the old traditional ways of doing the work and adopting newer and more scientific way of doing things. According to him scientific management is the act of knowing what you want men to do and then seeing that they do in the best possible way. The principles on which the scientific management works are science, not rule of thumb; harmony, not discord; cooperation, not individual; development of each and every person to his greatest efficiency
  • Max Weber's bureaucracy theory = According to Max Weber's theory of bureaucracy it is the significant contribution to the understanding of organizational structures. The characteristics of bureaucracy include rationality, impersonality and hierarchy. The principles of this theory are division of labor, hierarchy of authority, impersonality and formal rules and procedures.
  • Henry Fayol's administrative theory = Henry Fayol's administrative theory is also known as 14 principles of management. The principles include division of labor, authority and responsibility, discipline, unity of command and direction, remuneration, subordination of individual interest to personal interest, centralization, scalar chain, order, equity, initiative, esprit de corps and stability of personnel.

Question 145

"Organisational Behaviour is a field of study that investigates the impact that individuals, groups and structures have on behaviour within organisations for the purpose of applying such knowledge towards improving an organisation’s effectiveness." 

  1. AOption (a)

    Stephen P. Robbins 

  2. BOption (b)

    Keith Davis 

  3. COption (c)

    Fred Luthans

  4. DOption (d)

    Joe Kelly

View answer & explanation

Correct answer

Answer: (a)A.

Stephen P. Robbins 

Why this answer is correct

Correct answer is Stephens P. Robbins

Key Points

  • According to Stephen P. Robbins = "Organizational behavior is a field of study that investigates the impact that individuals, groups and structures have on behavior within organization for the purpose of applying such knowledge towards improving an organization's effectiveness."
  • According to Keith Davis = "Organizational behavior is the study and application at knowledge about how the people as individual and as groups act within organization. It strives to identify ways in which people can act more effectively."
  • According to Fred Luthans = "Organizational behavior can be defined as the understanding, prediction and management of the human behavior affect the performance of the organization."
  • According to Joe Kelly = "Organizational behavior is the systematic study of the nature of organization that how they begin, grow, and develop and their effect on individual members, constituent groups other organizations and large institutions."

Question 146

A person who reports unethical practices by their employer to outsiders is known as :

  1. AOption (a)

    perceiver

  2. BOption (b)

    reporter

  3. COption (c)

    whistle blower

  4. DOption (d)

    informer

View answer & explanation

Correct answer

Answer: (c)C.

whistle blower

Why this answer is correct

Correct answer is Whistle blower

Key Points

  • Unethical practices = Anything that goes below the corporate code of ethics is included as unethical business practices. It includes all those practices that is recognized as immoral that leads to human, animal or animal mistreatment.
  • Whistle blowers = A whistle blowers is an individual mainly an employee, who reports or discloses the information or behavior inside an organization that is unethical, unauthorized.
  • There are two types of whistle blowers
  • Internal whistle blowers = Internal whistleblower are those who report the misconduct or unethical practices to the higher authority within the organization.
  • External whistleblowers = External whistleblowers are those who report the unethical practices to the people outside the organization such as media or higher government officials.
  • Advantages of whistle blowers
  • Expose wrongdoing = Whistleblowers expose the illegal and unethical activities and help them to prevent them.
  • Legal protection = Law provides protection to the whistleblowers from retaliation.
  • Accountability = Whistleblowers provide individuals and organization accountable for their actions.

Question 147

What is the source of formation of attitude?

  1. Social Learning
  2. Instrumental Conditioning
  3. Direct Experience
  1. AOption (a)

    Only 1

  2. BOption (b)

    Only 2 and 3

  3. COption (c)

    Only 1 and 2

  4. DOption (d)

    Only 1 and 3

View answer & explanation

Correct answer

Answer: (d)D.

Only 1 and 3

Why this answer is correct

Correct answer is Only 1 and 3

Key Points

  • Attitude refers to the feelings and belief of an individuals or group of individuals. Attitudes result in and affect ones behavior or action of the people. Attitude comprises of three components
  • Cognitive attitude = It includes the values, beliefs and ideas a person has about the object.
  • Emotional attitude = It includes the individual's emotional and persons feelings towards an object, person or a situation.
  • Behavioral attitude = It includes the tendency of the person to behave in a certain manner.
  • Factors that affect the formation of attitude
  • Social learning = Individuals adopt attitudes through social learning. Social learning can come from family, friends, peers and from neighborhood also. Social roles play an important role in formation of attitude that how people are expected to behave in a particular way.
  • Direct experience = Personal experience or direct experience weather positive or negative can shape an attitude of an individual
  • Media influences = Mass media which includes television, movies, radio, print media can shape attitudes of an individual by presenting values and lifestyles. The formation of attitude through media can be positive or negative.
  • Educational background = Education and exposure to ideas and perspectives to external environment can influence the ones attitude of an individual.

Question 148

Match the organisational objective with the marketing concepts given below; and choose the correct code:

Organisational ObjectivesMarketing Concepts
(a)Effective distribution(i)Product concept
(b)Large scale selling and Promotional effort(ii)Societal concept
(c)Produce what consumer need(iii)Selling concept
(d)Product improvement(iv)Production concept
(e)Improve society's well being(v.)Marketing concept
  1. AOption (a)

    a-(v); b-(iii); c-(iv); d-(i); e-(ii)

  2. BOption (b)

    a-(iv); b-(iii); c-(v); d-(ii); e-(i)

  3. COption (c)

    a-(iv); b-(i); c-(v); d-(iii); e-(ii) 

  4. DOption (d)

    a-(iv); b-(iii); c-(v); d-(i); e-(ii)

View answer & explanation

Correct answer

Answer: (d)D.

a-(iv); b-(iii); c-(v); d-(i); e-(ii)

Why this answer is correct

Correct answer is a-(iv); b-(iii); c-(v); d-(i); e-(ii)

 Key Points

Organizational objectivesMarketing concept
1)The product concept holds the view that the consumer will purchase only those products that offer the higher quality, performance and innovative features. So the organizational objective will be to product improvement and focus in making superior products.Product concept
2)The societal concept holds the social responsibility in terms of ethical, legal, environmental. The organization should consider the role that they are playing in the society or could play for the society well being.Societal concept
3)Selling concept tells that the mangers and organizations must take great effort in aggressive selling and promotions. The selling concept is practiced more with unsought goods, goods that buyers normally do not buy like insurance policies.Selling concept
4)This concept is one of the oldest concepts. It holds that consumers will prefer the product that is widely available and is inexpensive. So the organization objective is on high production, low cost and mass distribution.Production concept
5)Instead of product centered that is make and sell, marketing concept is customer centered that is produce what customer wants. The job is to manufacture the right product for the customersMarketing concept

Question 149

What is known as the process of dividing the total market for a product or service into several smaller groups, such that the members of each group are similar with respect to the factors that influence demand?

  1. AOption (a)

    Market segmentation

  2. BOption (b)

    Market break down

  3. COption (c)

    Market separation 

  4. DOption (d)

    Market partition

View answer & explanation

Correct answer

Answer: (a)A.

Market segmentation

Why this answer is correct

Correct answer is Market segmentation

Key Points

  • Market segmentation = Market segmentation is the process of dividing the total market for a product or service into smaller groups, such that members of each group are similar with respect to the factors that influence demand. A market segment consists of the group of members that share a similar set of needs and wants. The marketer's task is to identify the segments of the market and decide which one to target.
  • Market break down =  Market breakdown is a term which is related with the security. The breakdown here refers to downward movement of the securities price, usually through an identified support, that portends further declines. The downfall can be measured by the traders using technical tools like moving averages, patterns and trends.
  • Market separation = Market separation is almost same as market segmentation but market segmentation is much broader than market separation. Market separation is referred to as division of distinct sub markets with a larger market based on specific characteristics. It allows the business to focus on specific sub markets that may have unique needs and preferences.
  • Market partition = It is similar to market separation like it also involves dividing a larger market into specific sub markets. However market partition implies a more significant separation with a focus of creating a more well defined partitions in the market. It helps the business to frame their strategies more precisely.

Question 150

What are Speciality Goods ?

  1. AOption (a)

    A class of consumer goods that are purchased only after the buyer has spent some time and effort comparing price, quality, style, colour, etc. of alternative products in competing stores.

  2. BOption (b)

    A class of consumer goods that people buy frequently with the least possible time and effort.

  3. COption (c)

    A class of consumer goods with perceived unique characteristics such that consumers are willing to spend special effort to buy them.

  4. DOption (d)

    Products bought by individuals or households for their personal non business use.

View answer & explanation

Correct answer

Answer: (c)C.

A class of consumer goods with perceived unique characteristics such that consumers are willing to spend special effort to buy them.

Why this answer is correct

Correct answer is  A class of consumer goods with perceived unique characteristics such that consumers are willing to spend special effort to buy them.

Key Points

  • Specialty goods = Specialty goods have a unique characteristics, features, qualities or brand identification for which a consumer makes special efforts to purchase the product. These type of goods does not involve comparisons. These goods target a niche market with consumers who seek high quality and branded products. Examples are cars, luxury goods, photographic equipment etc.
  • Shopping goods = Shopping goods are that goods for which the consumer compares various goods based on there suitability, durability, quality, price and style. Examples are clothes, furniture, footwear, electronics items etc. It is of two types homogenous and heterogenous shopping goods.
  • Homogenous shopping goods = These goods are similar in quality but different in prices.
  • Heterogenous shopping products = These goods differ in quality very much but there is little difference in prices.
  • Unsought goods = These are those goods which the consumer do not know about and normally do not think of buying like insurance policies. These goods require more advertising and personal selling support.

Additional Information

  • Some other types of goods
  • Durable goods = Durable goods are those goods which can survive many uses like furniture, clothes, machine tools. These goods require more personal selling.
  • Non durable goods = These goods normally can be used for one or two times like soap, toothpaste. These types of goods are purchased very frequently by the consumer and does not require heavily advertising.
  • Services = Services are intangible, inseparable and and perishable products. It requires higher quality and credibility.

Question 151

Choose the statement which is incorrect.

  1. AOption (a)

    Pricing is governed by not only the internal factors of a company but also external environmental factors. 

  2. BOption (b)

    Sales maximisation will automatically lead to profit maximisation.

  3. COption (c)

    Companies which want to create a "prestige image" for their products normally price them high. 

  4. DOption (d)

    Price stabilization policy seeks to prevent price wars.  

View answer & explanation

Correct answer

Answer: (b)B.

Sales maximisation will automatically lead to profit maximisation.

Why this answer is correct

Correct answer is Sales maximization will automatically lead to profit maximization

Key Points

  • Pricing is governed not only by the internal factors like marketing objectives, marketing mix strategy, cost, stage of product life cycle but it is also governed by the external factors like nature of the market, demand of the consumer (if the demand is high price will increase and when demand decreases price will also decrease), competition prevailing in the market, government rules and regulations and the distribution channels also.
  • Prestige products means those products which is of high quality and patented features and sold at high prices to create an impression of luxury, exclusivity and higher quality that's why a company who want to create a prestige image for their products will normally price them higher than the other products because consumers think that high priced goods have high quality.
  • Price stabilization or price stability means avoiding the prolonged increase in price which can lead to inflation and price wars between the firms. The main objective of price stability is to reduce the price wars with competitors and promoting a more sustainable and profitable market environment. The other objective of price stabilization are customer confidence, competitive advantage and reduce risk of inflation and deflation.
  • Sales maximization will automatically lead to profit maximization this is completely a false statement because many businesses goal is to maximize their sales but it does not necessarily lead to profit maximization as some business may have high sales but low profit because the cost associated with those sales is higher. To achieve the profit we need to consider many factors other than sales maximization like cost control, pricing strategy, environmental factors and operational efficiency.

Question 152

Read the Assertion and Reasoning and select the correct option.

Assertion (A): The channel of distribution is a network of institutions that perform a variety of interrelated and coordinated functions in the movement of goods from producers to consumers.

**Reasoning (R):**Most producers do not sell goods directly to the consumers. They make use of a variety of intermediaries known as middlemen. These middlemen who take title to goods or assist in transferring the title to goods as they move from the producer to the consumer.

  1. AOption (a)

    (A) and (R) both are correct ; and (R) is the right explanation of (A)

  2. BOption (b)

    (A) and (R) both are correct ; but (R) is not the right explanation of (A). 

  3. COption (c)

    Both (A) and (R) are incorrect.

  4. DOption (d)

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

View answer & explanation

Correct answer

Answer: (a)A.

(A) and (R) both are correct ; and (R) is the right explanation of (A)

Why this answer is correct

Correct answer is (A) and (R) both are correct; and (R) is the correct explanation of (A)

Key Points

  • Assertion (A) = This is true as the channels of distribution is the network of institutions that perform a variety of interrelated and coordinated functions in the movement of goods from producers to consumers.  Marketing channels are helpful in converting the potential buyers into profitable orders that's why producers uses marketing channels to supply there goods to the consumers.
  • Reasoning (R) = This statement is also true and the correct explanation of assertion as most producers do not sell goods directly to the consumers because they lack the financial resources to carry out directing marketing and it is not feasible to carry out direct marketing in many cases. So they make use of a variety of intermediaries known as middlemen. These middlemen who take title to goods or assist in transferring the title to goods as they move from the producer to the consumer.

Question 153

Read the situation given below and classify it.

A customer walks into a general merchant's shop and while buying 'Dove' soap discovers that he can get a stainless steel spoon free if she buys 'santoor' soap. Therefore, she bought 'santoor' soap.

  1. AOption (a)

    It is an Advertisement

  2. BOption (b)

    It is a Publicity.

  3. COption (c)

    It is neither advertisement nor publicity. 

  4. DOption (d)

    It is both, advertisement as well as publicity. 

View answer & explanation

Correct answer

Answer: (c)C.

It is neither advertisement nor publicity. 

Why this answer is correct

Correct answer is It is neither advertisement nor publicity

Key Points

  • Advertising = Advertising is any paid and non personal form of promotion of goods, ideas and services by an identified sponsor. Advertising can be done from different mediums like televisions, print media and radio. Advertising is a effective way to disseminate the messages and information to the consumers. In this particular situation there is no advertising as there is no paid promotion of goods.
  • Advertising can be of many types like informative advertising which aims to create brand image and knowledge of new products in the market, persuasive advertising which aims to persuade the liking, preference and purchase of a particular product, reminder advertising which aims at stimulating the repeat purchase of goods and services and reinforcement advertising which aims to convince that the customer has made a right choice.
  • Publicity = Publicity refers to the non personal and free of cost delivering of messages to increase the demand of the product. It is a publishing job and has more truth than advertising. Main objective of publicity is to earn reputation and win the favor of the people. In this particular example in which stainless steel spoon is given free is not a kind of publicity.
  • This particular case is of sales promotion scheme of providing free goods so that sales of goods along which the free goods is given can increase.

Question 154

Define "Strategy".

  1. AOption (a)

    It is hierarchy of intentions ranging from a board vision through mission and purpose down to specific objectives

  2. BOption (b)

    It is a comprehensive plan laying down the principle steps for accomplishing a specific objective and sets an approximate time limit for each stage. 

  3. COption (c)

    A series of functions or steps performed to accomplish a specific task or undertaking.

  4. DOption (d)

    A unified, comprehensive and integrated plan that relates the calculated advantage of the firm to the challenges of the environment.

View answer & explanation

Correct answer

Answer: (d)D.

A unified, comprehensive and integrated plan that relates the calculated advantage of the firm to the challenges of the environment.

Why this answer is correct

Correct answer is A unified, comprehensive and integrated plan that relates the calculated advantage of the firm to the challenges of the environment.

Key Points

  • Strategy = A strategy is a planned set of actions to achieve specific goals and objectives while taking into account the environmental challenges. Strategy involves taking decisions relating to allocating the resources, responding to competition and position the organization in the market in a positive way. In other words it is a unified (which takes into account all the aspects of the business), comprehensive (making overall plans to achieve the goals) and integrated (to combine all the activities of the business and then taking the decision) plan that relates to the calculated advantage of the firm to the challenges of the environment.
  • The key business strategy should include the following
  • Vision and mission, goals and objectives, Proper resource allocation, risk management to mitigate the uncertainties, implementing the plan according to the strategy and monitor and evaluate the results.

Question 155

In PESTEL framework, what does ' L ' stand for ?

  1. AOption (a)

    Liberalisation

  2. BOption (b)

    Linguistic

  3. COption (c)

    Legal

  4. DOption (d)

    Logistics

View answer & explanation

Correct answer

Answer: (c)C.

Legal

Why this answer is correct

Correct answer is Legal

Key Points

  • The PESTEL framework is used by the businesses to measure the external factors and their effects on the business operations and decision making. It is used to monitor the macro environmental factors. PESTEL stands for Political, Economic, Social, Technological, Environmental and Legal.
  • Political = It assess the impact of the government policies like taxes, custom duty, goods and services tax, foreign trade policies and rules and regulations on the business.
  • Economic = In PESTEL framework E stands for economic and it focuses on the economic conditions such as inflation, exchange rates, interest rates, depression or recession and economic growth which can affect the company's financial performance.
  • Social = It focus on the societal factors and well being of the society like demographics, cultural trends, social attitude, employment patterns, income patterns and cost of living which can affect the consumer behavior which in turn affects the company's position in the market.
  • Technological = This factor analyses the impact of the technological advancements and innovations related to production, distribution and communication that are prevailing in the market on the organization and on the industry.
  • Environmental = This factor is related to sustainable environment and takes into account climate changes, sustainability, less usage of plastic products, pollution and environmental regulations related to that.
  • Legal = Legal framework is related with the laws and regulations, rights, advertising standards, equal opportunities that can impact the business environment.

Question 156

A strategy, which is directed at producing goods and services considered unique in its industry and directed at consumers who are relatively price-insensitive, is known as

  1. AOption (a)

    Cost Leadership

  2. BOption (b)

    Differentiation

  3. COption (c)

    Focus

  4. DOption (d)

    Low-cost strategy

View answer & explanation

Correct answer

Answer: (b)B.

Differentiation

Why this answer is correct

Correct answer is Differentiation

Key Points

  • Cost leadership = Cost leadership is a business strategy in which a company aims to become the lowest cost producer in the market. The primary goal of the cost leadership is to achieve a competitive advantage by offering goods and services at the lowest cost while maintaining the product quality. This type of strategy allows the company to attract the consumers through low prices of the product and with good quality and higher profit margins for the business.
  • Differentiation = Differentiation is a business strategy in which company aims to create a unique and identified goods or services which are valued by the consumers who are relatively price sensitive. Differentiation can be made through various means such as quality, product features, price, brand image, innovation. By following this strategy the business aims to target a specific group of consumers.
  • Focus = This is a business strategy in which the company focus on a specific segment market or niche market. A niche marketing is identifiable by considering specific consumers, geographic areas and unique product lines. This allows business to expertise in the needs of the chosen market segment. By market focus the business can more effectively reach the target customer.
  • Low cost strategy = This is a business strategy in which the company emphasizes on producing the standardized product at a low cost. This strategy aims to target the customers who are price sensitive. The company attempts to gain a competitive advantage by reducing the cost lower than the competing firms.

Confusion Points

  • There is a slight difference between the cost leadership and low cost strategy, the cost leadership is a broader concept than the low cost strategy. Cost leadership aims to reduce the cost for the whole industry whereas in low cost strategy the company aims to reduce the cost for the specific product or service.

Question 157

Which of the following is not one of the four central questions that the study of economics is supposed to answer?

  1. AOption (a)

    Who produces what ?

  2. BOption (b)

    When are goods produced?

  3. COption (c)

    Who consumes what ?

  4. DOption (d)

    How are goods produced ?

View answer & explanation

Correct answer

Answer: (b)B.

When are goods produced?

Why this answer is correct

Correct answer is When are goods produced?

Key Points

  • The study of economics has to answer the four central question because of unlimited human wants and limited resources and those resources can be put to different uses.
  • What to produce and in what quantity?
  • An economy must decide the two things that is which commodities are to be produced and in how much quantity. This problem arises due to scarcity of resources. It is on the basis of these choices that country decide about the allocation of the scarce resources for the production of goods and in what quantity. An economy has to decide that which good to be produced and which one to forgo.
  • How to produce?
  • An economy should decide on how to produce the goods means which technology to be used to manufacture the commodity. Here the problem is to determine the combination of inputs like labor and capital to be used in production of goods. This problem arises because there are many alternative ways to produce a commodity and we should adopt the optimum method.
  • From whom to produce?
  • An economy should decide that how the produce should be distributed among the individuals in the economy. For whom to produce means who will consume the goods and services produced. This question has two aspects that are personal distribution(how the goods are to be distributed among the people and the households) and functional distribution(how the output should be distributed among the different factors of production like labor, rent, profit to shareholders)
  • Who consumes what?
  • An economy should answer the question of who consumes what means who would be the consumer it can be a household, shareholder, labor etc. and should they consume like household will need product, labor will require wages, shareholder will need profit of his investment.

Question 158

__________is defined as the change in total cost as a result of change in the level of output, investment etc.

  1. AOption (a)

    Marginal cost

  2. BOption (b)

    Opportunity cost

  3. COption (c)

    Incremental cost 

  4. DOption (d)

    Marginal opportunity cost

View answer & explanation

Correct answer

Answer: (c)C.

Incremental cost 

Why this answer is correct

Correct answer is Incremental cost

Key Points

  • Marginal cost = Marginal cost means that additional cost which is incurred by employing an addition factor of production to produce an additional unit of output. Marginal cost is calculated by dividing the total cost by the total quantity of production.
  • Opportunity cost = Opportunity cost means that cost which is foregone for the next best alternative. In other words opportunity cost is equal to the value of the next best alternative which is foregone, given up or sacrificed in choosing a given alternative.
  • Incremental cost = Marginal cost and incremental cost are almost similar but there is a subtle difference, incremental cost is a broader term than the marginal cost. Marginal cost is the cost only for the additional unit of output but incremental cost is related with the specific product. Incremental cost is defined as the change in total cost as a result of change in the total level of output, investment etc.
  • Marginal opportunity cost = Marginal opportunity cost is the rate at which the units of output of one good is sacrificed for produce an additional unit of another good. In other words it is the ratio of the additional loss of one unit of good which is being sacrificed to the additional gain of output which is produced.

Question 159

If good growing conditions increase the supply of coconut and hot weather increases the demand for coconut water, the quantity of coconuts bought :

  1. AOption (a)

    increases and the price might rise, fall or not change

  2. BOption (b)

    does not change but the price rises

  3. COption (c)

    does not change but the price falls

  4. DOption (d)

    increases and the price rises

View answer & explanation

Correct answer

Answer: (a)A.

increases and the price might rise, fall or not change

Why this answer is correct

Correct answer is Increases and the price might rise, fall or not change.

Key Points

  • If good growing conditions increases the supply of coconut and hot weather increases the demand for the coconut water then the quantity of coconut bought will increase as increase in demand means more people will purchase the product and the supply is also increasing so there is no shortage of the coconut water.
  • Now, as the demand is increasing the price can increase because when the demand increases and the supply remains constant there is shortfall of that product so to balance the demand and supply the seller will increase the price but in this particular scenario the supply is also increasing so the seller may or may not increase the price of the coconut.
  • Now there are three situations that can exist
  • When increase in demand is more than increase in supply the price will rise and the quantity will also increase.
  • When increase in supply is more than increase in demand then price will fall and quantity will increase.
  • When increase in demand is equal to increase in supply then the price will remain same and quantity will increase.

Question 160

Which of the following statements about price elasticity of demand is correct?

(a) Price elasticity of demand is a measure of how much the quantity demanded of a good responds to a change in the price of that good.

(b) Price elasticity of demand is computed as the percentage change in quantity demanded divided by the percentage change in price.

(c) Price elasticity of demand in the long run would be different from that of the short run.

  1. AOption (a)

    Only (a) 

  2. BOption (b)

    Only (b)

  3. COption (c)

    Only (c)

  4. DOption (d)

    All (a),(b),(c)

View answer & explanation

Correct answer

Answer: (d)D.

All (a),(b),(c)

Why this answer is correct

Correct answer is All (a), (b), (c)

Key Points

  • Price elasticity of demand is a measure of how much the quantity demanded of a good responds to a change in the price of that good. Or in other words it is the ratio of the proportionate change in the quantity demanded by the proportionate change in the price of the good.
  • Price elasticity of demand or elasticity of demand are same as the price is the most changeable factor that affects the demand and is computed as the percentage or proportionate change in quantity demanded divided by the percentage or proportionate change in price. There are five degrees of elasticity of demand namely
  • Perfectly elastic demand when elasticity is equal to infinity
  • Perfectly inelastic demand when elasticity is equal to 0
  • Highly elastic demand when elasticity is equal to more than 1
  • Highly inelastic demand when elasticity is equal to less than 1
  • Unit elastic demand when elasticity is equal to 1
  • Price elasticity of demand in the long run would be different from that of the short run. As in the long run the demand for the particular commodity will be more elastic as the consumers have more time to adjust their behavior and find substitutes whereas in the short run the price elasticity is inelastic because the consumers have limited time to react and find substitutes.

Discipline 4 (20 questions)

Question 161

Which of the following is not an individual component of systematic risk?

  1. AOption (a)

    Purchasing power risk

  2. BOption (b)

    Market risk

  3. COption (c)

    Inflation risk

  4. DOption (d)

    Interest rate risk

View answer & explanation

Correct answer

Answer: (c)C.

Inflation risk

Why this answer is correct

Correct answer is Inflation risk 

Key Points

  • Systematic risk = Systematic risk is due to the factors that affect the market as a whole, the factors include political, social and economic factors. These changes have an influence on the performance of the business and their stock price but in varying degrees. This type of risk cannot be diversified and they are uncontrollable in nature. Systematic risk is of three types 
  • Interest rate risk = This type of risk arises due to variability in the interest rates from time to time. There is an inverse relationship between the interest rate and price of the security. It affects all the market as a whole and is non diversifiable and uncontrollable in nature.
  • Purchasing power risk = It is a systematic risk as it affects all the participants in the financial market and cannot be reduced through diversification. Purchasing power risk refers to the potential for the value of money to decline due to inflation as inflation rates vary over time and investors are caught unaware when the rate of inflation changes causing erosion in the value of rate of return.
  • Market risk = It is a systematic risk that affects prices of any particular share move up or down consistently for some time period, a general rise in share price is known as bullish trend and a fall in share price is known as bearish trend. Market risk includes factors such as economic downturns, interest rate fluctuations, political instability etc.

Question 162

Noida Toll Bridge is an example of_______ type of project financing. 

  1. AOption (a)

    Build, own & operate type (BOO)

  2. BOption (b)

    Build, own, operate & transfer type (BOOT)

  3. COption (c)

    Build, operate & Transfer type (BOT)

  4. DOption (d)

    Bridge financing

View answer & explanation

Correct answer

Answer: (b)B.

Build, own, operate & transfer type (BOOT)

Why this answer is correct

Correct answer is Build, own, operate and transfer type (BOOT)

Key Points

  • Build, own and operate type (BOO) = The build, operate and own contract is a project model used for large and complex public private partnership infrastructure projects. In BOO type of financing the government allows the private companies to build, operate and own the infrastructure. It is a type of privatization which requires a high amount of investment with operations that require specialized expertise.
  • ​Build, operate, own and transfer type (BOOT) = It is a type of public private partnership model generally used for the infrastructure projects like toll roads, bridges, airports, power plants and water treatment plants. In BOOT a private entity takes all the responsibility to build and operate the infrastructure for a specified period and then after some period like several year or decades they transfer the ownership and operation to the public sector or the government.
  • Build, operate and transfer (BOT) = In this model the government or the public sector grants finance to the private company the build the infrastructure and operate the same for some years like 20 to 30 years in order to earn the profit and recover the cost and then transfer the infrastructure to the public sector who advanced the grants. Examples are construction of highway roads.
  • Bridge financing = Bridge financing is the short term financing which helps the business to cover the company's short term cost until more permanent financing is secured. It is often used in the real estate transactions.

Question 163

Which of the following ratios does come under Activity /Operating ratios ?

  1. AOption (a)

    Current ratio

  2. BOption (b)

    Quick Ratio

  3. COption (c)

    Inventory turnover ratio

  4. DOption (d)

    Proprietary Ratio

View answer & explanation

Correct answer

Answer: (c)C.

Inventory turnover ratio

Why this answer is correct

Correct answer is Inventory turnover ratio.

Key Points

  • Activity, operating and efficiency ratios = Activity ratio examines how efficiently the company utilizes assets and resources like inventory, debtors, current assets and capital assets  to generate revenue. The activity ratio includes the following ratios namely inventory turnover ratio, debtors turnover ratio, creditors turnover ratio, current assets turnover ratio, working capital turnover ratio and capital turnover ratio.
  • Liquidity ratio = This ratio measures the ability of the firm to meet its current or short term obligations out of its short term sources of fund. Liquidity ratio includes the following ratios namely current ratio, liquid ratio or quick ratio and absolute quick ratio.
  • Capital or leverage ratio = This ratio helps in measuring the financial contribution of the owners as compared to that of the creditors and the risk involved in debt financing. The capital ratio includes the following ratios namely debt equity ratio, proprietary ratio, solvency to total assets ratio, capital gearing ratio.
  • Profitability ratio = This ratio measures the ability to earn the profit in relation to the sales and investment. This profitability ratio includes the following ratios gross profit ratio, operating ratio, operating profit ratio, net profit ratio, return on capital employed, return on equity shareholders.
  • Investment ratio = This ratio is helpful to the shareholders in analyzing the perspective investment in the company. This ratio includes earning per share, price earning ratio, capitalization ratio, dividend per share, dividend payout ratio, dividend yield ratio and reserves to capital ratio.

Question 164

This is a basic concept of accounting. According to this concept every business transaction has a two-fold effect. In commercial context it is a famous dictum that "every receiver is also a giver and every giver is also a receiver". Name the concept. 

  1. AOption (a)

    Money Measurement Concept 

  2. BOption (b)

    Business Entity Concept

  3. COption (c)

    Objective Evidence Concept

  4. DOption (d)

    Dual Aspect Concept 

View answer & explanation

Correct answer

Answer: (d)D.

Dual Aspect Concept 

Why this answer is correct

Correct answer is Dual aspect concept

Key Points

  • Money measurement concept = According to money measurement concept only those transaction which can be measured in monetary terms are recorded in the books of account of the enterprise. For example if there is any conflict between the two department in the organization and due to that conflict if there is loss it should not be recorded because the loss due to that conflict cannot be measured in the monetary terms.
  • Business entity concept = According to this concept business is considered to be a separate entity from its owners. All the business transactions are recorded in the books of account from the business point of view. Owners are considered as creditors of the company to the extent of their capital in the business that's why the capital is shown as liabilities.
  • Objective evidence concept = According to this principle all accounting transactions should be evidenced and supported by the business documents such as invoices, sales bill, debit and credit note etc. This concept also holds the view that the accounting should be free from the personal bias.
  • Dual Aspect concept = According to this concept all the transactions that are recorded by the business has 2 aspects a debit and a credit of equal amount. This concept tells that every receiver is a giver and every giver is a receiver for example if a machinery is purchased the receiver will receive the machinery and the giver of the machinery will receive the amount for the machinery.

Question 165

In practice, a compound journal entry is not recorded when :

(a) one account is to be debited and two or more accounts are to be credited

(b) two or more accounts are to be debited and one account is to be credited

(c) two or more accounts are to be debited and two or more accounts are to be credited

(d) only one account is debited and another account is credited.

Choose the correct option.

  1. AOption (a)

    Only (a) 

  2. BOption (b)

    Only (a) and (b)

  3. COption (c)

    Only (b)

  4. DOption (d)

    Only (d)

View answer & explanation

Correct answer

Answer: (d)D.

Only (d)

Why this answer is correct

Correct answer is Only (d)

Key Points

  • Compound entry = A compound entry is that single journal entry that involves more than two accounts. In accounting each transaction involves at least two transactions one is debit and other is credit but sometimes some transaction may involve more than two accounts. The combine journal entry of that more than two accounts are known as compound entry. Compound entry may involve the more than two accounts in the following ways
  • One account to be debited and two or more accounts is to be credited.
  • Two or more account is to be debited and one account is to be credited.
  • Two or more accounts are to be debited and two or more accounts are to be credited
  • Importance of compound journal entry 
  • Simplifying the book keeping process = A compound journal entry makes the bookkeeping process simplified as we need not to make separate journal entry for every debit and credit in a transaction.
  • Efficiency = Compounded journal entries increases the efficiency as it is easy to record and analyze and takes less time.
  • Some examples of compound journal entry
  • Wages ac                                   Dr.

         Administrative ac                       Dr.                                                                                                                     To cash ac 

  • Cash ac                                      Dr.                                                                                                            To Interest ac                                                                                                                                    To Commission ac                                                                                                                            To Dividend ac

Question 166

A bill drawn on June 16 for a period of 30 days and unfortunately July 19 is a public holiday.Then what will be the maturity date of the bill?

  1. AOption (a)

    19th July

  2. BOption (b)

    20th July

  3. COption (c)

    18th July

  4. DOption (d)

    17th July

View answer & explanation

Correct answer

Answer: (c)C.

18th July

Why this answer is correct

The correct answer is 18th July.

Key Points 

  • If a bill is drawn on June 16 for a period of 30 days, the maturity date of the bill will be July 18 provided that July 19 is a public holiday.
  • When there is a public holiday on the date of maturity of the bill, the bill becomes due on the preceding business day.
  • The maturity date of the bill of exchange refers to a the date on which bill becomes due for payment.
  • To calculate the date of maturity, 3 days are added to the date on which the bill is payable. These 3 days are known ad Days of Grace.

Additional Information 

  • Bill of exchange is an unconditional order in writing signed by the drawer, directing the drawee to pay a fixed sum of money at a specified date in the future to a specified person or the bearer.
  • The person who makes the bill is called the drawer and the person who accepts the bill is called the drawee.
  • The seller or creditor who is the drawer draws the bill upon the buyer of goods. Drawee is the creditor or buyer who accepts the bill and makes the payment to the payee on the date of maturity
  • The payee is the person to whom the payment is made. The drawer may or may not be the payee.

Question 167

Which of the following expenditures is considered as deferred revenue expenditure? 

  1. AOption (a)

    Rs. 2,000 spent on repairs of machinery

  2. BOption (b)

    Rs. 20,000 spent on some major alterations to a theatre which made it more comfortable and attractive.

  3. COption (c)

    Rs. 4,000 spent on dismantling, transportation and reinstalling plant and machinery to a new site

  4. DOption (d)

    Rs. 60,000 spent on construction of railway siding

View answer & explanation

Correct answer

Answer: (c)C.

Rs. 4,000 spent on dismantling, transportation and reinstalling plant and machinery to a new site

Why this answer is correct

The correct answer is Rs.4000 spent on dismantling, transportation and reinstalling plant and machinery to a new site.

Key Points 

  • The amount spent on dismantling and reinstalling plant and machinery to a new site is considered deferred revenue expenditure. It is non recurring expenditure and is spread over a number of years over its useful life.
  • Rs. 2000 spent on repairs of machinery is revenue expenditure as it is related to the repair and maintenance of a fixed asset.
  • Rs.20,000 spent on some major alterations to a theatre is capital expenditure.
  • Rs.60,000 spent on construction of a railway siding is a capital expenditure as it involves construction of a fixed asset.

Additional Information 

  • Deferred revenue expenditure refers to an expenditure whose benefit is likely to be available for more than one year. It is not entirely written off in the current year and is written off during the subsequent years . The amount not written off in the current year is shown in the balance sheet under the head Assets. For example, advertising expenditure, preliminary expenses.
  • Capital expenditure is the expenditure which is incurred in one year but its benefit is available for a number of years. The expenditure on acquisition of fixed assets, expansion of fixed assets, expenditure on mines and land for plantations are examples of capital expenditure.
  • Revenue expenditure is an expenditure incurred during the regular course of a business and whose benefit usually lasts for one year. For example, wages, salaries, rent, repair of fixed assets.

Question 168

Which of the following statements is false in relation to consignment?

  1. AOption (a)

    The relationship between the consignor and the consignee is that of a principal and an agent.

  2. BOption (b)

    The legal ownership and title of goods is not transferred to the consignee. 

  3. COption (c)

    Despatch of goods on consignment amounts to sale of goods by the consignor

  4. DOption (d)

    The consignee does not become the debtor of the consignor on receipt of goods. 

View answer & explanation

Correct answer

Answer: (c)C.

Despatch of goods on consignment amounts to sale of goods by the consignor

Why this answer is correct

The correct answer is Despatch of goods on consignment amounts to sale of goods by the consignor.

Key Points 

  • Despatch of goods on consignment does not amount to sale of goods by the consignor.
  • The consignee receives the goods to sell those goods on behalf of the consignor and is entitled to commission from the consignor.
  • The sale proceeds made on the sale of goods are returned to the consignor. Profit or loss on sale belongs to the consignor.
  • Consignee can return the unsold goods to the consignor.

 Additional Information

  • Consignment refers to an arrangement in which the consignee sells goods on behalf of the consignor.
  • Consignor is the person who sends the goods and consignee is the person who receives the goods and sells them on behalf of consignor.
  • The ownership and title of goods remains in the hands of the consignor and is not transferred to the consignee. Only the possession of goods is transferred to the consignee.
  • The consignor is the principal and the consignee is the agent.
  • The consignor does not become the debtor of the goods. Instead he receives commission from the consignor to sell goods on his behalf

Question 169

Memorandum Joint Venture Account is prepared to find out :

(a) Amount due from the co-venturers

(b) Profit or loss on the joint venture

  1. AOption (a)

    Only (a)

  2. BOption (b)

    Only (b)

  3. COption (c)

    Both (a) and (b)

  4. DOption (d)

    Neither (a) nor (b)

View answer & explanation

Correct answer

Answer: (b)B.

Only (b)

Why this answer is correct

The correct answer is Only (b).

Key Points 

  • Memorandum Joint venture is prepared to find out profit or loss on the joint venture.
  • Under Memorandum Joint venture account method, each co venturer records only those transactions relating to the joint venture which are directly concerned with him and not those of others.
  • Each co venturer sends a statements of his transactions to the other co venturers.
  • Memorandum joint venture account is a nominal account. All the expenses and losses are debited to it and all incomes and profits are credited to it.
  • The balance of memorandum account shows profit or loss on joint venture.

Additional Information 

  • Joint venture is an agreement where two or more persons come together and contribute capital to open a specific venture or business and agree to share profits or losses in an agreed ratio.
  • The parties in a joint venture are called joint venturers or Co venturers.
  • Joint venture can be undertaken for accessing new markets, sale of goods, construction of buildings or bridges, investment in shares, underwriting of shares or for expansion of business.

Question 170

Loading is usually involved in all such items which are recorded at the invoice price in the Consignment Account.Which of these is not one of those items?

  1. AOption (a)

    Opening Stock

  2. BOption (b)

    Goods Returned by the Consignee

  3. COption (c)

    Goods Sent on Consignment

  4. DOption (d)

    Expenses incurred by the consignor

View answer & explanation

Correct answer

Answer: (d)D.

Expenses incurred by the consignor

Why this answer is correct

The correct answer is Expenses incurred by the consignor.

Key Points 

  • Expenses incurred by the consignor : These are the expenses incurred by the consignor to dispatch the goods, sell the goods, manage the goods and market the goods. These are not recorded at the invoice price and not subject to loading.
  • Opening stock : The goods sent by the consignor to the consignee at the beginning of consignment are recorded at the invoice price, and also involve loading.
  • Goods returned by the Consignee : The unsold goods which are returned by the consignee to the consignor are recorded at invoice price , including loading.
  • Goods sent on Consignment: The goods which are sent by consignor the consignee to sell them on behalf of consignee are recorded in the consignment account at the invoice price, including loading.

Additional Information 

  • Loading refers to the profit added to the cost of goods that are sent to the consignee to arrive at the invoice price. Loading is done to cover expenses and ensure profit to the consignor.
  • The difference between invoice price and cost price of goods is called loading. The difference is the profit margin added to the cost price.

       Loading = Invoice price - Cost price​

Question 171

Which of these books is not related to ' Non Trading concerns ' ?

  1. AOption (a)

    Stock Register

  2. BOption (b)

    Minutes Books

  3. COption (c)

    Members Register 

  4. DOption (d)

    Donation Books 

View answer & explanation

Correct answer

Answer: (d)D.

Donation Books 

Why this answer is correct

The correct answer is Donation books.

Key Points 

  • Non- trading concerns maintain Stock register, Minutes books and Member register.
  • Stock register records the purchases of assets like furniture, office equipment and consumable items like stationery
  • Minute books keep a record of the proceedings and decisions of the meeting of general body and managing committee.
  • Members Register keeps a record of the names, addresses, admission dates of all the subscribers or members of the society.

Additional Information 

  • Non- trading concerns are those organisations whose main objective is not to earn profit but work for the welfare of the society.
  • Non trading concerns accept donations and receipts from the general public, corporates and government to meet its expenditures.
  • Sports clubs, educational institutions, hospitals, religious trusts, libraries are examples of non trading concerns.

Question 172

Which of the following is not a method of costing ?

  1. AOption (a)

    Operating Costing 

  2. BOption (b)

    Standard Costing

  3. COption (c)

    Job Costing

  4. DOption (d)

    Contract Costing

View answer & explanation

Correct answer

Answer: (b)B.

Standard Costing

Why this answer is correct

The correct answer is Standard Costing.

Key Points 

  • Standard costing is not a method of costing. It is a technique of costing.
  • Standard Costing is a technique which is used to set predetermined standards or costs and compares actual costs with the standard costs to identify variances.
  • Standard costing does not allocate costs to product, service or process or jobs. It is an approach to set standards and analyse variances in the cost of material, labour or overhead.

Additional Information 

  • Operating Costing is a method of costing which is used to ascertain the cost of operating or providing services. It is used in industries where the output is service. For example, transport, hotel, electricity, healthcare industries apply operating costing.
  • Job costing is a method of costing used to determine the cost of a specific job or specific work order where each job is a separate cost unit and done according to customer's specific requirements. Furniture manufacturers, shipbuilding industries , law and consulting firm are examples who employ job costing.
  • Contract costing is a costing method where a contractor undertakes a contract for a contractee for a certain sum of money which is determined by adding the expenses of all the activities and stages of the project. It is used in industries who undertake construction work or infrastructure development.

Question 173

Which is not a direct or indirect cost?

  1. AOption (a)

    Oncosts

  2. BOption (b)

    Supplementary costs

  3. COption (c)

    Overhead cost

  4. DOption (d)

    Down cost

View answer & explanation

Correct answer

Answer: (d)D.

Down cost

Why this answer is correct

The correct answer is Down cost.

Key Points 

  • Down cost is not a direct or indirect cost.
  • Supplementary costs or overhead cost are those costs which can not be directly allocated to a product or service and do not change with the change in level of output.
  • Oncosts are the additional costs incurred in the process of production.These are not direct costs but include the indirect costs, overheads.

Additional Information

  • Direct costs are those costs which can be directly attributable to a product, service or a cost unit or cost centre. Direct material, direct labour and direct expenses are the direct costs.
  • Indirect costs refer to the costs which can not be directly charged to a product or service. Indirect costs include indirect material, indirect labour and indirect expenses which are also called overheads.

Question 174

______is also referred to as e-website. It allows the customers to purchase goods from various sellers using Internet.Its aim is to provide a global, reliable, 24 x 7 web based effective sales management system. 

  1. AOption (a)

    e-visibility

  2. BOption (b)

    e-mall

  3. COption (c)

    e-store

  4. DOption (d)

    e-shop

View answer & explanation

Correct answer

Answer: (d)D.

e-shop

Why this answer is correct

The correct answer is e- shop.

Key Points 

  • E- shop refers to a website that allows the purchase and sale of goods over the internet.
  • The consumers can browse through the goods from the catalog of goods provided by the sellers and purchase the goods with Internet access.
  • E-shop caters to the needs of the customers globally allowing the sellers to expand their market worldwide.
  • It is a reliable source of shopping which is available for 24 hours a day and 7 days a week, thereby making it accessible to customers at any time of the day.

 

​ 

Additional Information

  • E- store refers to a virtual store of a retailer which allows the retailer to sell goods online. It allows the customers to purchase goods of a retailer by browsing the products online on the particular e-store website.
  • E- visibility's increasing the presence of a business online using techniques like better online advertising and content marketing, using SEO and leveraging social media platforms.

Question 175

What are benefits of e-commerce to society at large :

(i) E-Commerce enables more individuals to work at home and to do less travelling for shopping resulting in less traffic on the roads and lower air pollution.

(ii) E-commerce enables public to shop or do other transactions 24hrs a day, all year round from almost any location.

(iii) Ability for creation of highly specialized business.

(iv) E-Commerce enables people in rural areas to enjoy products and services that are not available to them.

(v) E-commerce provides people with more choices they can select from many vendors and from many products.

  1. AOption (a)

    Only (i) and (ii)

  2. BOption (b)

    Only (ii) and (iii)

  3. COption (c)

    Only (i) and (iv)

  4. DOption (d)

    All (i), (ii), (iii), (iv), (v)

View answer & explanation

Correct answer

Answer: (d)D.

All (i), (ii), (iii), (iv), (v)

Why this answer is correct

The correct answer is All (i), (ii), (iii), (iv), (v).

Key Points 

  • E- commerce enables individuals to work at home and do less travelling for shopping which results in less traffic on the roads and lower air pollution. People can browse for the products online and make purchases from a range of products available on the websites.
  • E- commerce enables public to shop 24 hrs a day, from any location. It is available round the clock and enables the public to shop at any time from anywhere using any device over the Internet.
  • E- commerce enables for creation of highly specialised business.
  • E- commerce allows people in rural areas to enjoy products that are not available to them locally. People in rural areas do not have access to wide range of products locally, e-commerce enables them to access goods and services transcending geographical boundaries.
  • E-commerce provides people with many choices. People can browse from a range of multiple products sold by various vendors. The public can study the features of various products available and make the best choice .

Question 176

Which of these is an example of models of e-commerce ?

  1. AOption (a)

    Watermelons bought by a restaurant owner from a farmer

  2. BOption (b)

    A watermelon farmer sells his watermelon to another farmer

  3. COption (c)

    A watermelon farmer opens a farm stand

  4. DOption (d)

    A watermelon farmer advertises his watermelon online

View answer & explanation

Correct answer

Answer: (d)D.

A watermelon farmer advertises his watermelon online

Why this answer is correct

The correct answer is A watermelon farmer advertises his watermelon online.

Key Points 

  • When a watermelon farmer advertises his watermelon online, he is using e-commerce to advertise and sell his product over the Internet.
  • Watermelon bought by a restaurant owner from a farmer, a watermelon selling his watermelon to another farmer and a farmer opens a farm stand do not involve use of Internet for sale or purchase of goods and thus are not forms of e- commerce.
  • The watermelon farmer advertises his watermelons online to reach a wider customer base and ensure that his product is available round the clock.
  • It offers the customers better accessibility to the product and allows the farmer to promote his product online using digital marketing strategies.

Additional Information 

  • E- commerce refers to the purchase, sale and marketing of goods online using an electronic platform.
  • It is different from brick and mortar stores which require a physical space to sell and purchase goods.
  • E- commerce websites operate 24/7 and provide a global marketplace.

Question 177

E-cash is not based on which of the following systems ?

  1. AOption (a)

    Digital Signatures

  2. BOption (b)

    Electronic Data Exchange

  3. COption (c)

    Cryptocurrency

  4. DOption (d)

    Digital Name

View answer & explanation

Correct answer

Answer: (d)D.

Digital Name

Why this answer is correct

The correct answer is Digital name.

Key Points 

  • E- cash is based on digital signatures, electronic data exchange and cryptocurrency.
  • E- cash refers to money in electronic form that allows secure transfer of funds.
  • E-cash is a convenient form of making payment while making online transactions.
  • E-cash is stored and transferred only in digital form using an electronic or online platform.

Additional Information 

  • Digital signatures are used in e- cash systems which is an electronic and encrypted form of authentication to ensure the identity and integrity of the users.
  • Electronic data exchange refers to exchange of business information  such as purchase orders, invoices, inventory documents, custom documents using a standard format. The information is interchanged between organisations or trading partners to help them improve supply chain and improve efficiency.
  • Cryptocurrency refers to a virtual currency that uses cryptography for making payment. It is based on blockchain technology and is not supervised by any central authority or bank.

Question 178

It is a popular technique for generating new ideas. A group of persons sit together and generate as many business ideas as possible. One idea leads to another.

What is this technique/process called as?

  1. AOption (a)

    Stepladder

  2. BOption (b)

    Brain storming

  3. COption (c)

    Starbursting

  4. DOption (d)

    Brain Writing

View answer & explanation

Correct answer

Answer: (b)B.

Brain storming

Why this answer is correct

The correct answer is Brain storming.

Key Points 

  • Brain storming is a technique for generating new ideas where a group of people sit together and generate as many ideas as possible.
  • Brain storming is a group solving technique which helps in solving clearly defined problems of a business.
  • During brainstorming, the creative ideas of all the persons in the group are encouraged to flow freely without any judgement.
  • Brain storming offers fresh perspective to business problems as people with diverse ideas offer a fresh and arrive at a comprehensive solution.

Additional Information 

  • Stepladder is a technique where each member states his ideas before listening to the views of other members of the group. It ensures that all the members of the group contribute to the discussion without anyone being left behind.
  • Star bursting is a technique that focuses on asking questions rather than seeking and providing answers to generate new ideas.
  • Brain writing is a technique in which the members of the group write down their ideas and offers an inclusive opportunity to all the members to share their creative ideas to solve the challenges.

Question 179

Which of these is a kind of company categorised on the basis of liability of shareholders or members ?

  1. AOption (a)

    Private Company

  2. BOption (b)

    Public Company

  3. COption (c)

    Unlimited Company

  4. DOption (d)

    Government Company

View answer & explanation

Correct answer

Answer: (c)C.

Unlimited Company

Why this answer is correct

The correct answer is Unlimited Company.

 Key Points

  • In an unlimited company, the liability of shareholders or members of the company is unlimited and not limited to the amount invested by them.
  • In an unlimited company, the personal assets of the members or shareholders can be used to pay the debt obligations in the event of liquidation.
  • As per the Companies Act, unlimited companies can be incorporated with or without share capital.
  • Section 68 related to the buy back of shares does not apply to unlimited companies.

Question 180

A company forfeited 400 equity shares of Rs. 10 each issued at a discount of 10 percent for non-payment of two calls of Rs. 2 each. What will be the amount forfeited by the company?

  1. AOption (a)

    Rs.2,400

  2. BOption (b)

    Rs.2,000

  3. COption (c)

    Rs.1,600

  4. DOption (d)

    Rs.4,800

View answer & explanation

Correct answer

Answer: (b)B.

Rs.2,000

Why this answer is correct

The correct answer is Rs.2000.

Key Points 

  • The amount forfeited by the company for non payment of two calls of Rs.2 each will be Rs. 2000.
  • The journal entry for the forfeiture will be:

        Share capital A/C       Dr.       4,000

               To share forfeiture A/C                 2,000

               To Discount on share issue          400

               To Share First & Second Call       1600 ( (Forfeiture of 400 shares of Rs. 10 each issued at   discount of 10% on non payment of call money)

Additional Information 

  • Forfeiture of shares: If a shareholder fails to pay the allotment money or call money called upon by the company, his shares can be forfeited. The shares get cancelled and the amount received is forfeited.
  • The shares can be forfeited if authorised by the Articles of Association.
  • There is reduction in issued share capital of the company after forfeiture of shares.

Discipline 5 (20 questions)

Question 181

For calculating pre-incorporation profits in the case of a public limited company the relevant date is - 

  1. AOption (a)

    The date of take over

  2. BOption (b)

    The date of Certificate of Incorporation

  3. COption (c)

    The date of Certificate to Commence Business

  4. DOption (d)

    The date of issuing shares 

View answer & explanation

Correct answer

Answer: (b)B.

The date of Certificate of Incorporation

Why this answer is correct

The correct answer is The date of certificate of Incorporation.

Key Points 

  • In case of a public limited company the relevant date for calculating pre- incorporation profits is the date of certificate of Incorporation.
  • Pre incorporation profits are those profits which have been earned by a company prior to its incorporation or formation.
  • Pre incorporation profits are capital profits and can not be distributed as dividend.
  • The profits earned during the pre incorporation are transferred to the capital reserve account.

Additional Information 

  • A public limited company is a company whose shares are offered to the general public
  • The shareholders of a public company have limited liability upto the amount invested by them.
  • The Registrar of companies issues Certificate of Incorporation to the pUblic limited company.
  • Certificate of Incorporation is governed by Companies Act, 2013.
  • Certificate of incorporation provides legal status to the company and the date of incorporation is a date when the company gets registered.

Question 182

Which of the following proformas of Balance Sheet of a company does require that figures of the previous year should be shown in separate column along with the figures of the current year with respect to each of the items of liabilities and assets ?

a. horizontal form

b. vertical form

  1. AOption (a)

    Only (a)

  2. BOption (b)

    Only (b)

  3. COption (c)

    both (a) and (b)

  4. DOption (d)

    Neither (a) nor (b)

View answer & explanation

Correct answer

Answer: (b)B.

Only (b)

Why this answer is correct

The correct answer is only (b).

Key Points 

  • In the vertical form of Balance sheet, a company is required to show the figures of the previous year in separate column along with the figures of the current year with respect to all items of liabilities and assets.
  • In the vertical form of balance sheet, the assets and liabilities are shown vertically whereas in the horizontal form, assets and liabilities are listed horizontally from left to right.
  • The assets can be compared with the liabilities and also the figures of one period can be compared with another period.

Additional Information 

  • Balance sheet is a financial statement that shows the financial position of a business at a particular point in time.
  • There are two formats of preparing the balance sheet- horizontal and vertical format.
  • In the horizontal form, the assets are shown on the left side and liabilities are shown on the right side.
  • In the vertical format, the equity and liabilities are shown on the top and assets are listed at the bottom.
  • The assets and liabilities are always balanced which means that the assets side should always be equal to liabilities side.

Question 183

Match the items of List - II with the items of List - I and indicate the code of correct matching. The items relate to the Balance Sheet of a Company.

List IList II
(a)Miscellaneous Expenditure(i)Unclaimed Dividend
(b)Current Liabilities(ii)Forfeited Shares Account
(c)Subscribed Capital(iii)Work in Progress
(d)Current Assets(iv)Discount on Issue of Shares
  1. AOption (a)

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

  2. BOption (b)

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

  3. COption (c)

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

  4. DOption (d)

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

View answer & explanation

Correct answer

Answer: (b)B.

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

Why this answer is correct

The correct answer is  a- (iv); b- (i); c- (ii); d- (iii).

Key Points 

  • Discount on issue of shares is shown on the Assets side of the balance sheet under the head 'Miscellaneous Expenditure'.
  • Unclaimed dividend is short term liability which is shown on the liabilities Side of the balance sheet under the head 'Other current liabilities'.
  • The balance in Forfeited share account is shown in the balance sheet under the head 'Share capital'.
  • Work in progress is shown on the assets side of the balance sheet under the head 'Current assets'.

Additional Information 

  • Miscellaneous expenditure refers to the expenditure that has not been written off during the current financial year.
  • Current liabilities are the short term debt obligations of a company that are due to be paid within a year. For example, accounts payable, accrued expenses, short term loans.
  • Subscribed capital refers to that part of issued capital which has been subscribed by the shareholders of a business.
  • Current assets are those assets which can easily be converted into cash and whose benefit is derived within a year. For example, sundry debtors, bills receivable, inventory, marketable securities.

Question 184

X sets up a new business on October 1, 1987 and does not close his books on March 31,1988. What will be the period of previous year for the assessment year 1989-90?

  1. AOption (a)

    24 months

  2. BOption (b)

    18 months

  3. COption (c)

    12 months

  4. DOption (d)

    9 months 

View answer & explanation

Correct answer

Answer: (b)B.

18 months

Why this answer is correct

The correct answer is 18 months.

Key Points

  • The period of previous year for the assessment year 1989-90 will be 18 months.
  • The previous year will the period from October1, 1987 to March 1989 i.e. a period of 18 months.
  • Due to the adoption of uniform accounting year w.e.f. 1.4.1989, the previous year for some assesses exceeded 12 months.

Additional Information

  • Previous year is the year in which income is earned by an individual.
  • Assessment year is the year in which income is taxed and the assessed is required to pay the tax on the income earned by him in the Previous year.
  • All the assesses are required to adopt financial year as the previous year. The financial year is April1 to March 31.

Question 185

The gold standard was briefly reinstated from which to which year as the Gold Exchange Standard?

  1. AOption (a)

    1914-39

  2. BOption (b)

    1920-30

  3. COption (c)

    1925-31

  4. DOption (d)

    1927-32

View answer & explanation

Correct answer

Answer: (c)C.

1925-31

Why this answer is correct

The correct answer is 1925-31.

Key Points 

  • The gold standard was reinstated as the Gold exchange standard from 1925-31.
  • The gold exchange standard was reinstated after World War I because of an inadequate supply of gold to be held as reserves.
  • Under the gold exchange standard, countries currencies were backed by gold as well as other country's currencies that were convertible into gold.
  • The gold exchange standard helped to keep the international trade stable.
  • It provided flexibility and stability to the exchange rates.

Additional Information 

  • The gold standard was a monetary system where the value of a country's currency was directly linked to gold.
  • To provide stability to the currency, the currencies could be exchanged for gold.
  • Countries had to maintain gold reserves to back their currency.
  • The gold standard ended after the Great Depression in 1930s because of lack of gold reserves.

Question 186

The Foreign Exchange Management Act (FEMA) was passed by Lok Sabha on? 

  1. AOption (a)

    2nd december 1999

  2. BOption (b)

    9th december 1999

  3. COption (c)

    9nd december 1973

  4. DOption (d)

    11 th december 1973

View answer & explanation

Correct answer

Answer: (a)A.

2nd december 1999

Why this answer is correct

The correct answer is 2nd december 1999

Key Points 

  • The Foreign Exchange Management Act (FEMA) was passed by the Lok Sabha, the lower house of India's Parliament, on 2nd December 1999.
  • It was enacted to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and promoting the orderly development and maintenance of the foreign exchange market in India.
  • FEMA replaced the Foreign Exchange Regulation Act (FERA) of 1973, which was enacted at a time when the Indian economy was heavily regulated and the government had strict controls over foreign exchange transactions.
  • FERA was seen as restrictive and outdated, and it was felt that a more modern and liberal framework was needed to align with the changing global economic environment.

Additional Information

  • FEMA brought about significant reforms in the foreign exchange regime of India by liberalizing many aspects of foreign exchange transactions while also putting in place mechanisms to monitor and regulate such transactions to ensure stability and prevent misuse.
  • It provided a legal framework for regulating foreign exchange transactions, including trade in foreign currency, remittances, and dealings in foreign exchange derivatives.

Question 187

Who said "Recruitment is a business, and it is a big business."?

  1. AOption (a)

    Lord

  2. BOption (b)

    Edwin B. Flippo, 

  3. COption (c)

    Dales S. Beach

  4. DOption (d)

    Dale Yoder

View answer & explanation

Correct answer

Answer: (b)B.

Edwin B. Flippo, 

Why this answer is correct

The correct answer is Edwin B. Flippo.

Key Points 

  • Edwin B. Flippo (1906–2003) was an American industrial psychologist and professor who made significant contributions to the field of human resource management. He is best known for his book "Personnel Management," which is considered a classic in the field.
  • Flippo emphasized the importance of recruitment and selection processes in organizations and recognized them as critical functions within the broader scope of human resource management.
  • Flippo's quote underscores the idea that recruitment is not just a routine administrative task but rather a strategic business function. In today's competitive business environment, attracting and hiring talented individuals who can contribute to the organization's success is essential.

Additional Information 

  • Flippo's assertion that recruitment is a "big business" highlights the economic significance of the recruitment industry itself.
  • Recruitment agencies, job boards, and other related services play a vital role in facilitating the matching of job seekers with employers.
  • These entities operate in a competitive marketplace and generate revenue through fees charged to employers for their services or through advertising revenue.

Question 188

Read the following statements and select the correct option.

A. A company's financial performance is dependant on the shares issued by the company.

B. A company's financial performance is dependant on the investment in assets.

C. A company's financial performance is dependant on the liquidity or cash flow statement.

D. A company's financial performance is based on the profits earned during the period.

  1. AOption (a)

    C and D are correct

  2. BOption (b)

    Only C is correct 

  3. COption (c)

    A and B are correct 

  4. DOption (d)

    A, B and C are correct

View answer & explanation

Correct answer

Answer: (a)A.

C and D are correct

Why this answer is correct

The correct answer is C and D are correct

Key Points 

  • The liquidity position and cash flow statement provide crucial insights into a company's financial health. Adequate liquidity ensures that a company can meet its short-term obligations, while a positive cash flow indicates the ability to generate cash from operating activities, which is essential for sustaining operations and investing in growth.
  • Profits earned during a period, such as net income or earnings before interest and taxes (EBIT), are key indicators of a company's financial performance. Profitability is a fundamental measure used by investors, analysts, and stakeholders to assess the success and viability of a company.

Additional Information

  • A company's financial performance is dependent on the shares issued by the company. This statement is incorrect because the issuance of shares by a company does not directly determine its financial performance. While issuing shares can provide the company with funds (equity financing), the performance of the company is based on its ability to generate profits from its operations, manage its expenses, utilize its resources efficiently, and maintain a strong financial position. The number of shares issued may affect the ownership structure and capital structure of the company, but it does not directly impact financial performance.
  • A company's financial performance is dependent on the investment in assets: This statement is incorrect, as investment in assets can impact a company's financial performance. However, it is not the sole determinant. While acquiring and efficiently utilizing assets such as property, plant, equipment, and other resources are important for generating revenue and profitability, financial performance also depends on other factors such as sales revenue, cost management, profitability ratios, market conditions, and overall business strategy.

Question 189

Which income from the following is partially exempted? 

  1. AOption (a)

    Agricultural income

  2. BOption (b)

    Shares from unregistered firm

  3. COption (c)

    Interest on certain government securities

  4. DOption (d)

    Payment of lease rent 

View answer & explanation

Correct answer

Answer: (b)B.

Shares from unregistered firm

Why this answer is correct

The correct answer is Shares from unregistered firm

Key Points 

  • Income from shares in an unregistered firm is indeed partially exempt from taxation. As per Section 10(2A) of the Income Tax Act, 1961, any income received by a partner from a firm, which does not have a written partnership deed and is not registered under the Indian Partnership Act, is exempt from tax up to a certain limit.
  • The exemption is limited to the extent of the partner's share in the firm's income computed in accordance with the provisions of the Income Tax Act. However, any interest, salary, bonus, commission, or remuneration received by the partner is fully taxable.

Additional Information 

  • The exemption is limited to the extent of the partner's share in the firm's income computed in accordance with the provisions of the Income Tax Act. This means that only the partner's share of the firm's income is eligible for exemption from taxation, up to a certain limit.
  • Any interest, salary, bonus, commission, or remuneration received by the partner from the firm is fully taxable and is not eligible for exemption under this provision.

Question 190

The State Bank of India Act was passed in 1959 and in course of time, 8 major State associated banks were amalgamated with the main bank as its subsidiaries. Which one of the following is not one of those banks? 

  1. AOption (a)

    Bank of Saurashtra

  2. BOption (b)

    Bank of punjab

  3. COption (c)

    Bank of Rajasthan

  4. DOption (d)

    The Hyderabad State Bank

View answer & explanation

Correct answer

Answer: (d)D.

The Hyderabad State Bank

Why this answer is correct

The correct answer is The Hyderabad State Bank

Key Points 

  • The State Bank of India (SBI) Act was indeed passed in 1955, not 1959, and it established the State Bank of India as the principal bank for the Indian government.
  • The State Bank of India Act led to the creation of the State Bank of India, which later became the flagship bank of India.In the course of time, several state-associated banks were amalgamated with the State Bank of India as its subsidiaries.
  • These mergers aimed to strengthen the banking sector, improve operational efficiency, and consolidate resources under one umbrella organization.

Additional Information

  • Bank of Saurashtra was one of the associate banks that were amalgamated with the State Bank of India as its subsidiary.
  • Bank of Punjab was also amalgamated with the State Bank of India as its subsidiary.
  • Bank of Rajasthan was merged with the State Bank of India as its subsidiary.

Question 191

Which media is very effective for advertisement, but is the most expensive medium?

  1. AOption (a)

    television

  2. BOption (b)

    radio

  3. COption (c)

    hoarding

  4. DOption (d)

    exhibition

View answer & explanation

Correct answer

Answer: (a)A.

television

Why this answer is correct

The correct answer is television

Key Points 

  • Television is often considered one of the most effective mediums for advertising due to its extensive reach, high engagement, and ability to convey messages using audiovisual elements.
  • However, it is also one of the most expensive mediums, especially for prime-time slots on popular channels.
  • Television advertising costs can vary widely based on factors such as the time of day, the popularity of the channel, the duration of the ad, and the content of the program it airs during.
  • Despite its high cost, television advertising remains a popular choice for brands looking to reach a large and diverse audience.

Additional Information 

  • The television advertising landscape is highly competitive, with brands vying for viewers' attention during commercial breaks. This competition can drive up the cost of advertising, particularly for coveted time slots or channels.
  • Television advertisements require professional production, including scripting, shooting, editing, and post-production. High-quality production adds to the overall cost of television advertising.
  • Television advertising effectiveness can be difficult to measure accurately compared to digital advertising.

Question 192

which of the following is not an objective of IMF today?

  1. AOption (a)

    discouraging adoption of exchange controls

  2. BOption (b)

    developing a multilateral system of payments.

  3. COption (c)

    maintaining Exchange rate stability

  4. DOption (d)

    assisting member countries to restore equilibrium in balance of payments 

View answer & explanation

Correct answer

Answer: (a)A.

discouraging adoption of exchange controls

Why this answer is correct

The correct answer is discouraging adoption of exchange controls

Key Points 

  • Discouraging adoption of exchange controls, This statement is not an objective of the International Monetary Fund (IMF) today. In fact, the IMF generally supports the liberalization of exchange controls and the promotion of free trade and capital flows among member countries.
  • The IMF encourages countries to adopt flexible exchange rate regimes and to minimize restrictions on currency convertibility and capital movements.
  • Therefore, discouraging the adoption of exchange controls is not a primary objective of the IMF.

Additional Information 

  • The IMF aims to facilitate international trade and finance by promoting the stability of exchange rates and the development of a multilateral system of payments. This involves providing a forum for cooperation among member countries to address global economic imbalances and financial crises.
  • The IMF works to promote exchange rate stability by providing financial assistance, policy advice, and technical assistance to member countries. It seeks to prevent excessive volatility in exchange rates, which can disrupt international trade and investment flows.
  • The IMF provides financial assistance and policy advice to member countries facing balance of payments difficulties.

Question 193

which of the following statements is true?

  1. AOption (a)

    tax incidence is the lowest in the case of non-resident

  2. BOption (b)

    incidence of tax is relatively higherof resident when compared with 'non-resident'. 

  3. COption (c)

    Agricultural income is totally exempted from tax

  4. DOption (d)

    Gratuity or Pension is partially exempted income

View answer & explanation

Correct answer

Answer: (b)B.

incidence of tax is relatively higherof resident when compared with 'non-resident'. 

Why this answer is correct

The correct answer is incidence of tax is relatively higherof resident when compared with 'non-resident'. 

Key Points 

  • In most countries, residents are typically subject to a higher incidence of taxation compared to non-residents.
  • Residents are usually taxed on their worldwide income, including income earned domestically and abroad, while non-residents may only be taxed on income sourced within the country.
  • Additionally, residents may be eligible for various deductions, credits, and exemptions that may not be available to non-residents, resulting in a relatively higher tax burden for residents.

Additional Information

  • Tax incidence refers to the burden of taxation on individuals or entities, and it varies depending on factors such as income level, tax laws, and residency status.
  • In India, gratuity received by employees is partially exempt from income tax, subject to certain limits and conditions prescribed under the Income Tax Act, 1961.

Question 194

which of the following statements is true?

  1. AOption (a)

    market gridding means establishing and running a web marketing facility

  2. BOption (b)

    market gridding is a method of survey of expert’s opinion.

  3. COption (c)

    market gridding means managing brands and developing brand equity

  4. DOption (d)

    market gridding is an analytical technique which facilitates dividing a market into segments

View answer & explanation

Correct answer

Answer: (d)D.

market gridding is an analytical technique which facilitates dividing a market into segments

Why this answer is correct

The correct answer is market gridding is an analytical technique which facilitates dividing a market into segments.

Key Points 

  • Market gridding is indeed an analytical technique used in market research and analysis to divide a market into segments or grids based on various factors such as demographics, geographic location, psychographics, or behavioral characteristics.
  • This segmentation helps businesses understand their target audience better and tailor their marketing strategies to meet the needs of different segments effectively.

Additional Information 

  • Market gridding does not specifically refer to establishing and running a web marketing facility. It is an analytical technique used in market research and analysis to divide a market into segments based on certain criteria.
  • Market gridding is not a method of surveying expert opinions. Instead, it is a quantitative technique used to analyze data and identify patterns or clusters within a market.
  • Market gridding is a powerful analytical technique that helps businesses gain deeper insights into their target market, enabling them to develop more effective marketing strategies, enhance customer engagement, and drive business growth.
  • By dividing the market into segments and understanding the unique characteristics of each segment, businesses can optimize their resources and maximize the impact of their marketing efforts.

Question 195

What is on the X and Y axis of the graph of a product life cycle?

  1. AOption (a)

    X- Growth Y- Time

  2. BOption (b)

    X- sale Y- Time

  3. COption (c)

    X- time Y- demand

  4. DOption (d)

    X-demand Y- sales

View answer & explanation

Correct answer

Answer: (a)A.

X- Growth Y- Time

Why this answer is correct

The correct answer is X- Growth Y- Time

Key Points 

  • In the graph of a product life cycle, the X-axis typically represents time, while the Y-axis represents the level of growth or performance of the product.
  • As time progresses, the product moves through different stages of its life cycle, including introduction, growth, maturity, and decline.
  • The Y-axis measures the level of growth or performance of the product over time, showing how it evolves and changes throughout its life cycle.

Additional Information

  • Introduction Stage: In the early stages of the product life cycle, the graph may show low levels of growth or performance as the product is introduced to the market and gains initial traction.
  • Growth Stage: As the product gains acceptance and popularity among consumers, the graph may show a sharp increase in growth or performance, indicating rapid sales growth and market expansion.
  • Maturity Stage: In the maturity stage, the graph may show relatively stable or plateauing levels of growth or performance as the product reaches its peak market penetration and faces increased competition.
  • Decline Stage: In the decline stage, the graph may show a decline in growth or performance as sales decrease and the product becomes less relevant or competitive in the market.

Question 196

who appoints NABARD chairman?

  1. AOption (a)

    appointment committee of nabard

  2. BOption (b)

    Reserve bank of india

  3. COption (c)

    Appointments Committee of the Union Cabinet

  4. DOption (d)

    President of india

View answer & explanation

Correct answer

Answer: (c)C.

Appointments Committee of the Union Cabinet

Why this answer is correct

The correct answer is Appointments Committee of the Union Cabinet

Key Points

  • The Chairman of NABARD is appointed by the Appointments Committee of the Union Cabinet. This committee consists of senior members of the Union Cabinet, including the Prime Minister, Home Minister, and other relevant ministers.
  • The Appointments Committee of the Union Cabinet is responsible for making appointments to various high-level positions within the Government of India, including heads of ministries, departments, and regulatory bodies.

Additional Information 

  • The National Bank for Agriculture and Rural Development (NABARD) is a development financial institution in India that focuses on the upliftment of rural areas by providing credit and other support services for agriculture, rural development, and allied sectors.
  • NABARD was established on July 12, 1982, by an Act of Parliament. It was formed on the recommendations of the Shivaraman Committee, which aimed to address the inadequacies in the institutional credit system for agriculture and rural development.

Question 197

Which of the following is prepared for distribution of profits among the partners?

  1. AOption (a)

    profit and loss account

  2. BOption (b)

    Profit and loss adjustment account

  3. COption (c)

    Partner's current account

  4. DOption (d)

    Profit and Loss appropriation account

View answer & explanation

Correct answer

Answer: (d)D.

Profit and Loss appropriation account

Why this answer is correct

The correct answer is Profit and Loss appropriation account.

Key Points 

  • The Profit and Loss Appropriation Account is a financial statement prepared specifically for the distribution of profits among partners in a partnership firm.
  • The primary purpose of the Profit and Loss Appropriation Account is to allocate the net profit or loss of the partnership among the partners according to their agreed profit-sharing ratios, as specified in the partnership agreement.
  • The account includes various components that reflect the allocation of profits to different partners and any adjustments made for specific purposes.
  • The Profit and Loss Appropriation Account starts with the net profit or loss earned by the partnership as per the Profit and Loss Account (income statement).

Additional Information 

  • The profit and loss account, also known as the income statement, summarizes a company's revenues, expenses, gains, and losses over a specific period, typically a fiscal year. It shows the net profit or loss earned by the business during that period. However, it does not specifically deal with the distribution of profits among partners in a partnership firm.
  • The profit and loss adjustment account is used to record any adjustments or corrections made to the profit and loss account. It helps reconcile discrepancies and ensure accuracy in financial reporting. Similar to the profit and loss account, it does not specifically deal with profit distribution among partners.
  • A partner's current account is a record that tracks the financial transactions between individual partners and the partnership firm. It records contributions, withdrawals, profits, losses, and other transactions related to each partner's equity interest in the firm.

Question 198

Which one of the following is a disadvantage of a tailor made software? 

  1. AOption (a)

    The high cost of installation and maintenance

  2. BOption (b)

    It is difficult to learn and require high tech training

  3. COption (c)

    Can link with another information system

  4. DOption (d)

    It can be developed according to the customer’s requirement 

View answer & explanation

Correct answer

Answer: (a)A.

The high cost of installation and maintenance

Why this answer is correct

The correct answer is The high cost of installation and maintenance

Key Points 

  • Tailor-made software refers to custom-built software solutions that are specifically developed to meet the unique requirements of an organization or individual client. While tailor-made software offers several advantages, such as customization, flexibility, and alignment with organizational processes, it also comes with certain disadvantages, including the high cost of installation and maintenance.
  • Tailor-made software solutions often involve a higher initial cost compared to off-the-shelf software options. This is because the development process for custom software requires specialized skills, expertise, and resources.
  • The development team needs to understand the client's requirements thoroughly and design a solution from scratch to meet those specific needs. As a result, the initial investment in the development of tailor-made software can be significant.

Additional Information 

  • While tailor-made software solutions may have unique features and functionalities that require training for users, the difficulty level of learning and training depends on various factors such as the complexity of the software, the quality of user interface design, and the availability of user-friendly documentation and support resources.
  • In many cases, tailor-made software can be designed with user experience and usability in mind, making it relatively easy to learn and use.

Question 199

what is the chief characteristic of foreign aid?

  1. AOption (a)

    it is made accessible on concessional terms inferring that the pace of interest is lower and the development time frame is longer

  2. BOption (b)

    loans and grants are provided for development purposes. 

  3. COption (c)

    rarely involves any foreign exchange problems when it is provided. 

  4. DOption (d)

    countries would need foreign exchange which they can acquire only by having surpluses in their balance of payments.

View answer & explanation

Correct answer

Answer: (a)A.

it is made accessible on concessional terms inferring that the pace of interest is lower and the development time frame is longer

Why this answer is correct

The correct answer is it is made accessible on concessional terms inferring that the pace of interest is lower and the development time frame is longer.

Key Points

  • The chief characteristic of foreign aid being made accessible on concessional terms, inferring that the rate of interest is lower and the development time frame is longer, is a fundamental aspect of international development assistance.
  • Foreign aid is often provided on concessional terms, meaning that the terms of the aid are more favorable to the recipient country than those available in the market.
  • These concessional terms typically include lower interest rates, longer repayment periods, and sometimes even partial or full forgiveness of debt.
  • By offering concessional terms, donor countries and international financial institutions aim to make the aid more accessible and sustainable for recipient countries, particularly those facing financial constraints or economic challenges.

Additional Information 

  • By providing financial resources and technical assistance on favorable terms, concessional foreign aid aims to address development challenges and promote economic growth, poverty reduction, and improved living standards in recipient countries.
  • By promoting sustainable development, concessional foreign aid contributes to the overall well-being and prosperity of recipient countries and their populations.

Question 200

When marketing practices are condemned for lessening rivalry, the analysis falls under which general space of social marketing issues?

  1. AOption (a)

    Marketing’s impact on the company

  2. BOption (b)

    Marketing’s impact on the individual. 

  3. COption (c)

    Marketing’s impact on other businesses.

  4. DOption (d)

    Marketing’s impact on society as a whole.

View answer & explanation

Correct answer

Answer: (c)C.

Marketing’s impact on other businesses.

Why this answer is correct

The correct answer is Marketing’s impact on other businesses

Key Points 

  • When marketing practices are condemned for lessening rivalry, it often involves examining how these practices affect competition within the industry and the broader business landscape. This issue falls under the realm of marketing's impact on other businesses, as it pertains to the competitive dynamics and market structure.
  • Anti-competitive behavior, such as predatory pricing, collusion, or monopolistic practices, can harm other businesses operating in the same market or industry. These practices may lead to unfair advantages for certain firms, barriers to entry for new competitors, and restricted market access for smaller businesses.

Additional Information 

  • By engaging in anti-competitive practices, dominant firms may undermine the ability of other businesses to compete effectively, limit their market share, or drive them out of the market altogether. This can result in reduced innovation, diminished consumer choice, and decreased overall economic efficiency.
  • Therefore, analyzing the impact of marketing practices on other businesses is essential for understanding the broader implications of anti-competitive behavior and identifying potential regulatory or policy interventions to promote fair competition and level the playing field for all market participants.

Discipline 6 (20 questions)

Question 201

Goods sent on consignment is debited to : 

  1. AOption (a)

    Consigment account

  2. BOption (b)

    Consignee's account

  3. COption (c)

    profit and loss account

  4. DOption (d)

    goods sent on consignment account

View answer & explanation

Correct answer

Answer: (a)A.

Consigment account

Why this answer is correct

The correct answer is Consigment account

Key Points 

  • When goods are sent on consignment, they are typically recorded in a special account called the Consignment account. This account is used to track the transactions related to the consigned goods, including their shipment, sale, and any expenses or income associated with them.
  • When goods are sent on consignment, the sender (consignor) retains ownership of the goods until they are sold by the recipient (consignee). As a result, the consignor records the value of the goods sent on consignment as a debit to the Consignment account, representing the transfer of ownership from the consignor to the consignee for the purpose of sale.
  • The Consignment account serves as a temporary holding account for the consigned goods and facilitates the tracking of inventory, sales, and expenses related to the consignment arrangement. It allows both the consignor and the consignee to monitor the movement and status of the consigned goods throughout the consignment period.

Additional Information

  • The Consignee's account is used to record transactions related to the consignment sales made by the consignee. It typically includes entries for sales revenue, commissions, expenses, and any remittances or payments made to the consignor.
  • The Profit and Loss account, also known as the income statement, is used to summarize a company's revenues, expenses, gains, and losses over a specific period, typically a fiscal year. It is not directly related to recording transactions for consigned goods and would not be used to debit the value of goods sent on consignment.

Question 202

Annual report is given by an organization to its:

  1. AOption (a)

    Management

  2. BOption (b)

    auditors

  3. COption (c)

    shareholders

  4. DOption (d)

    directors

View answer & explanation

Correct answer

Answer: (c)C.

shareholders

Why this answer is correct

The correct answer is shareholders

Key Points 

  • An annual report is a comprehensive document prepared by an organization, typically a corporation or a company, and distributed to its shareholders on an annual basis.
  • The primary purpose of the annual report is to provide shareholders with important information about the company's financial performance, operations, activities, and achievements during the fiscal year.
  • Annual reports typically include a wide range of financial and non-financial information, such as financial statements (income statement, balance sheet, cash flow statement), management discussion and analysis (MD&A), corporate governance practices, strategic initiatives, business highlights, key performance indicators (KPIs), and future outlook.

Additional Information 

  • While management plays a crucial role in preparing the annual report and providing input on its content, the primary audience for the annual report is the shareholders of the company.
  • Directors are members of the board of directors, which is responsible for overseeing the management of the company and representing the interests of shareholders. Directors may review and approve the annual report as part of their governance responsibilities, but they are not the primary recipients of the report.
  • Auditors are external or internal professionals responsible for examining and verifying the accuracy and completeness of a company's financial statements and related disclosures.

Question 203

Which of the following does not hold short-term claims as working balance against the major reserve centres?

  1. AOption (a)

    central bank

  2. BOption (b)

    commercial banks

  3. COption (c)

    business firms

  4. DOption (d)

    RBI

View answer & explanation

Correct answer

Answer: (c)C.

business firms

Why this answer is correct

The correct answer is business firms

Key Points

  • Business firms, also known as corporations or companies, are entities engaged in commercial activities to generate profits.
  • Unlike central banks and commercial banks, business firms do not typically hold short-term claims as working balances against major reserve centers as part of their regular operations.
  • While some large multinational corporations may engage in foreign exchange transactions and hold foreign currency reserves for operational purposes, this practice is not as common or essential as it is for central banks and commercial banks.

Additional Information 

  • The term "central bank" generally refers to the monetary authority of a country, such as the Federal Reserve in the United States or the European Central Bank in the Eurozone. Central banks play a crucial role in overseeing monetary policy, regulating financial institutions, and managing the nation's currency and reserves.
  • Commercial banks are financial institutions that accept deposits from the public and provide various banking services, such as lending, deposit-taking, and payment processing.
  • The Reserve Bank of India (RBI) is the central bank of India and serves as the apex monetary authority responsible for regulating the country's monetary policy, issuing currency, and managing the nation's foreign exchange reserves.

Question 204

In which year did the income tax act come into force?

  1. AOption (a)

    1961

  2. BOption (b)

    1958

  3. COption (c)

    1922

  4. DOption (d)

    1962

View answer & explanation

Correct answer

Answer: (d)D.

1962

Why this answer is correct

The correct answer is 1962

Key Points 

  • The Income Tax Act, 1961, came into effect in India on April 1, 1962. While the act was passed in 1961 by the Indian Parliament, its provisions were implemented from the financial year starting April 1, 1962.
  • This legislation replaced the previous Income Tax Act of 1922, consolidating and amending the laws relating to income tax in India.
  • The Income Tax Act, 1961, plays a crucial role in India's fiscal policy, revenue generation, and governance. It provides the legal framework for the taxation of income earned by individuals and entities, contributing significantly to the government's revenue mobilization efforts.

Additional Information 

  • The Income Tax Act applies to all individuals, Hindu Undivided Families (HUFs), companies, firms, associations of persons (AOPs), and bodies of individuals (BOIs) that earn income in India. It covers various sources of income, including salaries, wages, business profits, capital gains, interest, dividends, and rental income.
  • The need for a new income tax law arose from the desire to update and modernize the existing tax regime, which was based on the Income Tax Act of 1922. The new act was intended to align with the economic and social changes that occurred in India after independence in 1947.

Question 205

which of the following statements is false?

  1. AOption (a)

    Physical distribution system creates time and place utilities in products. 

  2. BOption (b)

    In total cost approach of physical distribution system, the cost of each element is considered in isolation.

  3. COption (c)

    Efficient customer service is anobjective of physical distribution system

  4. DOption (d)

    Total cost approach envisages the use of total cost while choosing the alternative courses of action in respect of physical distribution.

View answer & explanation

Correct answer

Answer: (b)B.

In total cost approach of physical distribution system, the cost of each element is considered in isolation.

Why this answer is correct

The correct answer is In total cost approach of physical distribution system, the cost of each element is considered in isolation.

Key Points 

  • In the total cost approach of physical distribution, the costs of different elements or activities involved in distribution are not considered in isolation but rather are considered collectively.
  • The total cost approach involves analyzing the overall costs associated with various distribution activities, such as transportation, warehousing, inventory management, and order processing, to determine the most cost-effective distribution strategy.
  • It focuses on optimizing the entire distribution process rather than individual cost components in isolation.

Additional Information

  • A physical distribution system involves the movement of goods from the manufacturer to the consumer, creating time and place utilities. Time utility refers to making products available when they are needed, while place utility refers to making products available where they are needed.
  • One of the primary objectives of a physical distribution system is to provide efficient customer service. This includes timely delivery of products, accurate order fulfillment, effective handling of customer inquiries and complaints, and overall satisfaction of customer needs and expectations.
  • The total cost approach in physical distribution involves evaluating the total cost associated with different distribution alternatives or courses of action. This includes considering the costs of transportation, warehousing, inventory holding, packaging, and other related activities.

Question 206

Payroll software is an example of which software?

  1. AOption (a)

    Utility software

  2. BOption (b)

    application software

  3. COption (c)

    programming software

  4. DOption (d)

    system software

View answer & explanation

Correct answer

Answer: (b)B.

application software

Why this answer is correct

The correct answer is application software.

Key Points 

  • Payroll software is an application software which is used to manage and automate payment to employees of an organisation.
  • Payroll software helps in maintaining transparency by providing the employees the right amount of payment at the right time.
  • It helps in identifying real time personnel costs of each department and making accurate budgets and forecasts.
  • It allows the management to monitor attendance , pay structure and and tax information of the employees.

Additional Information 

  • Application software is a software which is used for performing specific tasks. For example, spread sheet software, web browser, database software.
  • System software  is a software which is used to run a computer’s hardware and its applications. For example, Windows, Linux.
  • Programming software is a software which helps the programmer in  developing and maintaining other software and applications.
  • Utility software is  a software which is helpful in maintaining the smooth functioning of the computer. Antivirus, file management system and backup utility are few types of utility software.

Question 207

Which of the following is not an advantage of departmental stores?

  1. AOption (a)

    These stores are able to offer various products at more reasonable prices than most other retailers.

  2. BOption (b)

    Their central location attracts a large number of customers leading to a large turnover.

  3. COption (c)

    these stores can afford to have effective advertising through press, radio and television

  4. DOption (d)

    Bulk-buying from these stores enables them to obtain heavy discounts from manufacturers

View answer & explanation

Correct answer

Answer: (a)A.

These stores are able to offer various products at more reasonable prices than most other retailers.

Why this answer is correct

The correct answer is These stores are able to offer various products at more reasonable prices than most other retailers.

Key Points 

  • Departmental stores is a large establishment that offers various products which are classified into different departments such as medicines, groceries, electronics, cosmetics within a store.
  • Departmental stores are located at a central place which attracts a large number of customers leading to a large turnover. The prominent location of the store results in increased sales due to the increased visibility and easy accessibility of the store to a large number of consumers.
  • These stores can spend resources on advertising and promotional activities through press, radio and television. The effective advertising attracts the customers and leads to an increased sales.
  • Bulk buying from the manufacturers enables them to obtain heavy discounts. By buying the goods in large quantities from the manufacturers, departmental stores are able to avail better discounts or rebates, thus enabling them to take the advantage the economies of scale.

Additional Information 

  • Departmental stores combines the functions of retailing as well as warehousing.
  • Departmental stores have centralised purchasing procedures.
  • They offer other services which include home delivery of goods, credit facility, telephone booths etc.
  • These stores have high operational cost and require huge investment for set up.

Question 208

What is an index of operational efficiency?

  1. AOption (a)

    Operating Leverage

  2. BOption (b)

    Financial Leverage

  3. COption (c)

    Combined Leverage

  4. DOption (d)

    Return on Investment Leverage

View answer & explanation

Correct answer

Answer: (a)A.

Operating Leverage

Why this answer is correct

The correct answer is Operating leverage.

Key Points 

  • Operating leverage is an index of operational efficiency.
  • Operational efficiency refers to the ability of an organisation to reduce its input costs by minimising waste to generate output. It measures the efficiency of profit earned as a function of operating costs.
  • Operating leverage measures the degree to which a company can increase its operating income by increasing sales revenue. It is a measure of company's fixed costs relative to its variable costs.
  • A company has a high operating leverage if it has a large proportion of fixed costs compared to total costs. If the fixed costs are low, the company's operating leverage is low.

Additional Information 

  • Financial leverage refers to use of debt or borrowed capital to finance a company's operations and acquire assets and investment.
  • Combined leverage is a sum of financial and operating leverage. It is the organisation's total business risks

Question 209

The word 'downsizing‘ was coined by?

  1. AOption (a)

    Stephen Stanley

  2. BOption (b)

    Stefan Roach and Morgan Stanley

  3. COption (c)

    Morgan Roach

  4. DOption (d)

    Morgan Roach and Stephen Stanley

View answer & explanation

Correct answer

Answer: (b)B.

Stefan Roach and Morgan Stanley

Why this answer is correct

The correct answer is Stefan Roach and Morgan Stanley.

Key Points 

  • The term downsizing was coined by Stefen Roach and Morgan Stanley.
  • Downsizing refers to reducing the size of company’s workforce to cut costs and create more efficient businesses.
  • Downsizing is done to improve productivity, streamline operations and adapt to changing market trends.
  • The strategies for downsizing include workforce reduction, work redesign and systematic approach.
  • Downsizing can also be done in case of introduction of new management, new technology and merger of companies.

Question 210

Which of the following is an example of cash flows from investing activities?

  1. AOption (a)

    Issue of shares

  2. BOption (b)

    repayment of long term loan

  3. COption (c)

    Sale of investment by non financial enterprise

  4. DOption (d)

    purchase of raw material in cash

View answer & explanation

Correct answer

Answer: (c)C.

Sale of investment by non financial enterprise

Why this answer is correct

The correct answer is Sale of investment by non financial enterprise.

Key Points 

  • Sale of investment by non financial enterprise is a cash flow from investing activity.
  • Sale of investment by the enterprise is a cash inflow as cash is received by the company on selling the investments.
  • Cash flow from investing activities refers to the inflow and outflow of cash by purchase or sale of investments and fixed assets by a company.
  • Acquisition of fixed assets. Sale of fixed assets like  plant, machinery and cash loans and advances made to third party are all examples of cash flow from investing activities.

Additional Information 

  • Issue of shares is  an example of cash inflow from financing activity. Cash proceeds received on issuing shares is considered cash flow from financing activity. It represents an increase in capital of an enterprise.
  • Repayment of long term loan is a cash outflow from financing activity. It represents reduction in long term liabilities of an enterprise.
  • Purchase of raw material in cash is a cash payment made to the supplier. It is a cash outflow from operating activity. It represents a payment made in the day to day operations of the business.

Question 211

While recruiting, a test is conducted to find out whether a candidate is interested in the job for which he is a candidate and to find out which area of the job range the candidate is interested in. Which test is being talked about?

  1. AOption (a)

    aptitude test

  2. BOption (b)

    personality test

  3. COption (c)

    Cognitive ability test

  4. DOption (d)

    situational test 

View answer & explanation

Correct answer

Answer: (a)A.

aptitude test

Why this answer is correct

The correct answer is Aptitude test.

Key Points 

  • Aptitude test is conducted to find out the interest of a candidate in the job and his capacity to learn the job.
  • Aptitude test measure a candidate's capacity and his potential for development.
  • A personality test evaluates the personality of an individual including his behaviour, attitude, values, preferences, confidence
  • Cognitive ability test is used to measure a person's cognitive skills and abilities.
  • Situational tests are used to assess the individual's ability to respond to different situations and ability to solve problems in a situation.

Question 212

A method used in a comparative analysis of financial statement is:

  1. AOption (a)

    common size analysis 

  2. BOption (b)

    graphical analysis

  3. COption (c)

    returning analysis

  4. DOption (d)

    Comparative Analysis

View answer & explanation

Correct answer

Answer: (d)D.

Comparative Analysis

Why this answer is correct

The correct answer is Comparative analysis.

Key Points 

  • Comparative analysis is done to compare the financial data of two or more accounting periods.
  • Comparative statements can be used to compare two companies over different periods.
  • Comparative statements can be done by preparing comparative income statement and comparative balance sheet.
  • Comparative statements are used to compare the financial performance and financial position of a company at different periods.

​ 

Additional Information​ ​

  • Common size analysis is used to compare the performance of a company where each item is represented as a percentage of a base figure for that period.
  • Common size income statement and common size balance sheet are two types of common size statements.
  • These statements are used for financial information and decision making.

Question 213

Where is the headquarters of Bank of International Settlement situated?

  1. AOption (a)

    Belgium

  2. BOption (b)

    Switzerland 

  3. COption (c)

    France

  4. DOption (d)

    Germany

View answer & explanation

Correct answer

Answer: (b)B.

Switzerland 

Why this answer is correct

The correct answer is Switzerland.

Key Points 

  • The headquarters of Bank of International Settlement is situated in Basel, Switzerland.
  • It was founded in 1930.
  • It is owned by the central banks of member countries.
  • It is known as the banker’s bank and caters to the needs of the central banks.
  • It helps the banks in maintaining their foreign reserves and also monetary and financial stability.
  • It is owned by 60 member countries, representing 95% of the world GDP.

Additional Information 

  • India is a member of BIS.
  • Basel committee on Banking supervision is a committee under BIS for the regulation of banks.
  • Basel norms are issued under basel committee on banking supervision to coordinate the banking regulation across the globe.

Question 214

Which of the following statement(s) is/are true about monetary policy of RBI?  

A. Monetary policy is one of RBI's controlled expansion.

B. RBI possesses extensive powers of credit control, only quantitative in nature.

C. the monetary policy of the RBI has been rather weak.

D. The monetary policy of RBI has been very effective.

  1. AOption (a)

    Only A is True

  2. BOption (b)

    only B is true

  3. COption (c)

    A and C are true

  4. DOption (d)

    A and D are correct

View answer & explanation

Correct answer

Answer: (d)D.

A and D are correct

Why this answer is correct

The correct answer is A and D are correct.

Key Points 

  • Monetary policy is one of RBI’s controlled expansion which is used to control the supply of money in the economy and inflation rate to maintain the price stability in the economy.
  • The monetary policy of RBI has been effective in controlling inflation, encouraging savings and investments by influencing interest rates and maintaining the credit quality and macroeconomic stability.
  • RBI posseses extensive powers of credit control, including both qualitative and quantitative methods. Repo rate, reverse repo rate, bank rate, CSR and SLR are quantitative methods of credit control. Credit rationing, moral suasion, marginal requirement and direct action are qualitative methods of credit control.

Additional Information 

  • Monetary policy is the macroeconomic policy laid down by RBI to maintain the supply of money in the economy to maintain price stability and economic growth.
  • It is formulated by Monetary policy Committee(MPC) which consists of 6 members.
  • The MPC has set a inflation target at 4% with an upper tolerance limit of 6% and lower tolerance limit of 2%.

Question 215

What is the slope of the positive supply curve like?

  1. AOption (a)

    It slopes up and to the right

  2. BOption (b)

    It slopes up and to the left

  3. COption (c)

    It slopes down and to the right

  4. DOption (d)

    It slopes down and to the left 

View answer & explanation

Correct answer

Answer: (a)A.

It slopes up and to the right

Why this answer is correct

The correct answer is It slopes up and to the right.

Key Points 

  • The slope of the supply curve is positive and slopes up and to the right.
  • The slope represents that as the price of a good increases the quantity of goods supplied also increases.
  • The shift of supply curve towards the right implies that there is an increase in quantity of goods supplied at each price point.
  • The law of supply states that there is a positive relationship between the price of a good or service and the quantity supplied. It depicts the producer behaviour that as the price of goods increases, the supplier increases the profit  to earn profits because of higher prices.

Additional Information 

  • The demand curve slopes down and to the right. It implies that as a  the price of a good increases the quantity demanded of the good decreases.
  • The slope of a demand curve is negative.
  • Law of supply states that there is a direct relationship between price and quantity supplied whereas law of demand states that there is an inverse relationship between price and quantity demanded.

Question 216

Which market becomes necessary at the saturation stage?

  1. AOption (a)

    undifferentiated 

  2. BOption (b)

    differentiated

  3. COption (c)

    concentrated

  4. DOption (d)

    product differentiation

View answer & explanation

Correct answer

Answer: (b)B.

differentiated

Why this answer is correct

The correct answer is **differentiated.**​

Key Points 

  • At the saturation stage, the market that becomes necessary is differentiated.
  • At the saturation stage the market becomes mature and the competition in the market intensifies. Thus, it becomes necessary to differentiate from others to stand out and gain the market share.
  • Differentiated market fulfils the needs of customers by reaching the different markets and catering to the target audience.
  • Differentiation involves differentiating the company's products from the competitors by differentiating in terms of product features, sizes, durability, performance and functionality.

Additional Information 

  • Undifferentiated market is a market where there is no segmentation or differentiation of markets. It is useful where the consumers have similar tastes and preferences, thus allowing the businesses to cater to a wider audience.
  • Product differentiation is a strategy used to differentiate a company's product from other competitors in the market. It distinguishes a product in terms of product design, marketing, packaging, quality allowing the business to gain a competitive advantage.
  • Concentrated market is a marketing strategy which focuses on one target group or segment of the market. It involves single marketing campaign and single marketing mix designed for the needs of the target market.

Question 217

Bank of Venice was established in 

  1. AOption (a)

    1154

  2. BOption (b)

    1157

  3. COption (c)

    1517

  4. DOption (d)

    1514

View answer & explanation

Correct answer

Answer: (b)B.

1157

Why this answer is correct

The correct answer is 1157.

Key Points 

  • Bank of Venice was established in 1157.
  • It was the first public financial institution established in Venice, Italy to finance the monarch in his wars.
  • It is the most ancient bank in the world.
  • It provided financial services to the government, managed public funds and facilitated international trade.

Question 218

The intrinsic value of a bond or any fixed income security is equal to - 

  1. AOption (a)

    The realisable value of a bond

  2. BOption (b)

    The economic value of a bond

  3. COption (c)

    The present value of expected cash flows

  4. DOption (d)

    The previous year's value of cash flows

View answer & explanation

Correct answer

Answer: (c)C.

The present value of expected cash flows

Why this answer is correct

The correct answer is The present value of expected cash flows.

Key Points

  • The intrinsic value of a bond or any fixed income security is equal to the present value of expected cash flows.
  • It is the value determined after discounting all the future cash flows which include coupon payments and the principal payment at maturity.
  • If a bond's intrinsic value is higher than its market value, it is good investment.
  • The intrinsic value of a bond depends on various factors such as coupon rates, maturity date, creditworthiness of issuer and prevailing market conditions.
  • The formula for calculating present value of a bond is:

     PV = C/(1+r)1 + C/(1+r)2 +.... + C /(1+r)n + F/ (1+r)n

where PV = Present value of the bond, C= Coupon

payment r = Discount rate n= Number of periods F=   Face value of principal payment at maturity

Additional Information 

  • Debt securities issued by governments, government and quasi- government organisations and private business firms are fixed income securities.
  • Bonds are fixed income income securities.
  • Yield to maturity is used to calculate the total return that an investor can expect to earn on a bond or fixed income security.

Question 219

This type of interview helps the interviewer in appraising certain skills of the candidates like initiative and inter-personal skills. Which interview is being talked about?

  1. AOption (a)

    phone interview

  2. BOption (b)

    depth interview

  3. COption (c)

    panel interview 

  4. DOption (d)

    Group discussion interview

View answer & explanation

Correct answer

Answer: (d)D.

Group discussion interview

Why this answer is correct

The correct answer is Group discussion interview.

Key Points 

  • Group discussion interview is an interview that helps the interview er in appraising certain skills of the candidate like initiative, interpersonal skills, dynamism, presentation, dynamism and collaboration.
  • Under this method a topic for discussion is given to all the members of the group and the members have to share their views and facts on the given topic which helps the interviewer to evaluate the candidates.
  • It saves time of the interviewers.
  • Various skills such as communication skills, persuasive skills, teamwork, innovative skills, confidence and leadership skills are assessed by the interviewer. ​

Additional Information 

  • Phone interview is conducted for screening the candidate. It usually helps in confirming the qualifications, skills required in a candidate.
  • Depth interview is conducted to examine the candidates extensively to assess their core competencies and skills for the job.
  • Panel interview is  conducted by a group of interviewers to assess the candidates on various grounds ranging from skills, knowledge, qualifications to body language of the candidate.

Question 220

alt+F3 is the shortcut key for - 

  1. AOption (a)

    company creation

  2. BOption (b)

    payment voucher

  3. COption (c)

    calculator

  4. DOption (d)

    changing period in tally

View answer & explanation

Correct answer

Answer: (a)A.

company creation

Why this answer is correct

The correct answer is company creation.

Key Points

In Tally, the accounting software, Alt+F3 is a shortcut key that is primarily associated with managing the company details. When you press Alt+F3 in Tally, it provides access to the "Company Info" menu. From here, you can perform various tasks related to company data, but in the specific context of its most commonly understood function based on your correction:

  • Company Creation: Using Alt+F3 allows you to access the area where you can create a new company profile within Tally. This is a fundamental step for any business looking to manage their accounts using Tally because it involves setting up the company's basic information in the system. This information includes the company's name, mailing name, financial year start date, and base currency, among other details. Setting up a company in Tally is a critical initial step needed to use the software for accounting and financial management tasks.

Discipline 7 (20 questions)

Question 221

Rekha and Arjun entered into a contract whereby Rekha agreed to sell Arjun Rs.1,000 worth of heroin, an illegal substance. Which type of a contract is this? 

  1. AOption (a)

    unconstitutional contract 

  2. BOption (b)

    void contract 

  3. COption (c)

    unlawful contract

  4. DOption (d)

    voidable contract

View answer & explanation

Correct answer

Answer: (c)C.

unlawful contract

Why this answer is correct

The correct answer is unlawful contract.

Key Points

  • An unlawful contract is one that involves illegal activities, making it unenforceable:
  • In this case, the contract involves the sale of heroin, which is an illegal substance.
  • Such contracts are not valid under the law because they require participation in criminal activity.
  • Because the subject matter of the contract is illegal, it is automatically void and unenforceable.
  • Financial enterprises should avoid contracts involving unlawful activities as they pose legal risks and penalties.

Additional Information

  • Unconstitutional contract:
  • This option is incorrect. An unconstitutional contract violates the constitution of a country, which is not applicable in the context of a private illegal transaction.
  • Void contract:
  • While an unlawful contract is indeed void, the term "void contract" also includes contracts that are void for reasons other than illegality, such as lack of capacity or consent.
  • Voidable contract:
  • This is incorrect. A voidable contract is a valid contract that one or both parties may legally enforce or void, typically due to factors like misrepresentation or undue influence. It does not involve illegal activities.

Question 222

Which of the following terms is dissimilar to the other four in the context of insurable interest in life insurance?

  1. AOption (a)

    employee

  2. BOption (b)

    creditor 

  3. COption (c)

    Employer

  4. DOption (d)

    debtor

View answer & explanation

Correct answer

Answer: (d)D.

debtor

Why this answer is correct

The correct answer is Debtor.

Key Points 

  • Insurable interest means a person receives a financial or other type of benefit from the continued life of the insured individual. So, if the insured person dies, the surviving person would experience a financial loss or other hardship.
  • An employer can have insurable interest in the life of certain employees who play a key role in an organisation and their death can cause a financial hardship to the employer.
  • A creditor has an insurable interest in the life of a debtor. Creditors can insure a debtor with his or her consent as the death of a debtor can result in financial loss to the creditor.

Additional Information 

  • Life insurance is a contract between the insurance company and the policy holder based on trust. No person can get a life insurance policy without an insurable interest in the other.
  • Insurance interest of an individual protects them against the possibility of loss.

Question 223

Which is the most ancient bank in the world?

  1. AOption (a)

    Bank of ancient Rome

  2. BOption (b)

    Bank of Greece

  3. COption (c)

    Bank of Venice

  4. DOption (d)

    Bank of ancient France

View answer & explanation

Correct answer

Answer: (c)C.

Bank of Venice

Why this answer is correct

The correct answer is **​Bank of Venice.**​

Key Points 

  • Bank of Venice is the most ancient bank in the world.
  • It was established in 1157 in Venice, Italy.
  • It was the oldest public financial institution formed to finance the monarch in his wars.
  • It provided financial services to the government, managing public funds and facilitated trade.

Additional Information 

  • Bank of Greece was established in 1927 by virtue of Geneva protocol of 15 September, 1927. It is the Central bank of Greece.
  • Bank of France was established in 1800 as a private sector corporation and was nationalised in 1945. It was created by Napoleon Bonaparte.

Question 224

This technique of performance appraisal was first developed in USA and UK in 1943 and is focused on observation of behaviors across a series of select exercises or work samples.. Which technique is being referred to?

  1. AOption (a)

    Psychological Appraisals:

  2. BOption (b)

    Assessment Centers

  3. COption (c)

    Ranking Methods D

  4. DOption (d)

    Paired comparison method

View answer & explanation

Correct answer

Answer: (b)B.

Assessment Centers

Why this answer is correct

The correct answer is Assessment Centres.

Key Points 

  • Assessment centre is a performance appraisal technique which focuses on observation of behaviours across a series of select exercises or work samples
  • Assesses are requested to participate in in-basket exercises, work groups, computer simulations, role playing and other similar activities which require same attributes for successful performance in actual job.
  • The decision on the performance of the candidates is based upon the discussion of observations made by the evaluators.

Additional Information 

  • Psychological appraisal is a technique which is used to assess the emotional, intellectual, motivational and other personal characteristics of the potential employees. It is usually done to evaluate the candidates on future performance.
  • Paired comparison method is a method where each employee is rated with another employee in the form of pairs.
  • Ranking method is a method of appraising employees on the basis of ranking them from highest to lowest on the basis of different raring scales.

Question 225

Fictitious assets are included in:

  1. AOption (a)

    fixed liabilities

  2. BOption (b)

    Long term liabilities

  3. COption (c)

    Current liabilities

  4. DOption (d)

    Capital

View answer & explanation

Correct answer

Answer: (a)A.

fixed liabilities

Why this answer is correct

The correct answer is fixed liabilities.

Key Points 

  • Fictitious assets are shown on the assets side of the balance sheet under the head Miscellaneous expenditure.
  • These assets do not have a physical existence or any realisable value but are the expenses which give back return to a company over a period of time.
  • These assets include preliminary expenses, discount on issue of shares, research and development expenses, underwriting commission and promotional expenses.
  • These assets are not fully written off in the current accounting period.

Additional Information 

  • Long term liabilities are debt obligations of a company which are not due within a year. Long term loans and advances, bonds payable are examples of long term liabilities.
  • Current liabilities are short term debt obligations which are due to be paid within a year. For example, bills payable, sundry creditors, dividend payable and short term loans of a company.

Question 226

Which of the following statements is/are true?

A. When the required rate of return is equal to nominal rate, the value of bond is equal to its par value.

B. If the required rate of return is greater than the nominal rate, the value of a bond is more than its par value.

C. When the required rate of return is less than nominal rate, the value of bond is less than its par value.

  1. AOption (a)

    A and C are correct

  2. BOption (b)

    Only B is correct

  3. COption (c)

    Only A is correct

  4. DOption (d)

    Only A and B are correct

View answer & explanation

Correct answer

Answer: (c)C.

Only A is correct

Why this answer is correct

Correct answer is Only A is correct

Key Points

  • Bond =  A bond is a debt instrument which represent the loan provide by the investor to the borrower. When an investor purchases the bond they lend money to the borrower for the periodic payment of interest which is the required rate of return and the return of the principal amount at the time of maturity.
  • Required rate of return = Required rate of return is the minimum rate of return which is expected and required by an investor form an investment to compensate for his risk and for not using his liquidity or paring away with his liquidity. The required rate of return is affected by factors such as risk free rate, market risk and systematic risk. The value of bond is based on required rate of return in following ways.
  • When the required rate of return is equal to the nominal rate or the face value than the value of the bond is equal to its par value. Here the par value means the value at which the bond is issued to the investor for the purpose of lending money.
  • When the required rate of return is more than the nominal rate or when the return has par value plus the premium on it then the value of the bond is less than its par value.
  • When the required rate of return is less than nominal rate due to market risk factors and systematic risk then the value of bond is more than its par value.

Question 227

Which statement from the following is false? 

  1. AOption (a)

    A private company doesn't issue the prospectus

  2. BOption (b)

    The rate of dividend is fixed on equity shares

  3. COption (c)

    During the calls in advance the bank account is debited and calls in advance account is credited

  4. DOption (d)

    the lump sum amount can received on shares

View answer & explanation

Correct answer

Answer: (b)B.

The rate of dividend is fixed on equity shares

Why this answer is correct

Correct answer is The rate of dividend is fixed on equity shares

Key Points

  • Equity shares = Equity shares are the long term source of financing for the company. These shares are issued to the general public and are non redeemable means they can be repaid only at the time of winding up of the company. Shareholders of equity have the right to vote in the meetings of the company and they also have the right to share the profits and claim the assets of the company. The main disadvantage of the equity shareholders is that the rate of dividend is not fixed as in the case of debt because it depends on the company's profitability and the discretion of the board of directors. This allows the flexibility for payment of dividend like in case of to the company there is no requirement to pay the dividend to the shareholders.
  • A private company is not required to issue the prospectus unlike the public companies because the private company do not issue their shares to the public like the public company does so they are not bound by any stringent regulations to issue the prospectus.
  • During the calls in advance the bank account is debited because cash is received and whenever we receive anything it is debited according to the rule debit what comes in, credit what goes out and calls in advance is credited because the calls in advance is a liability which is to be fulfilled in the future.
  • The lump sum amount is received on shares mainly on the equity shares because they are irredeemable and have to be paid at the time of winding up of the company in lump sum amount.

Question 228

This type of contract involves a mutual agreement that comes into being after an unexpected occurrence, accident, or a natural calamity. In this type of contract both the parties have an element of risk. Identify the type of contract

  1. AOption (a)

    aleatory contract

  2. BOption (b)

    adhesion contract

  3. COption (c)

    express contract

  4. DOption (d)

    bilateral contract 

View answer & explanation

Correct answer

Answer: (a)A.

aleatory contract

Why this answer is correct

Correct answer is Aleatory contract

Key Points

  • Aleatory contract = The term aleatory is derived from the word "alea" meaning a dice or chance so aleatory contract is a contract is a type of contract where the performance of the parties is contingent upon the occurrence of the unexpected accident or any calamity or an uncertain event. Examples of this type of contract are gambling contract and insurance contract in insurance contract there is a mutual contract between the insured and the insurer on the happening of any unexpected or uncertain event.
  • Adhesion contract = It is a standardized contract that is offered by a party which has more bargaining then the other party. In this contract one party often a business or a service provider frames the terms and conditions and the other party often a consumer or a party with less negotiation power. The party with more negotiation power can either accept or reject the contract without changing any terms of the contract.
  • Express contract = Express contract are those contract in which the terms and conditions are explicitly stated either orally or in writing. In the express contract the parties clearly communicate the rights, duties, obligations and intentions of the contract.  This type of contract reduces the misunderstandings which may arise in case of implied contract.
  • Bilateral contract = In bilateral contract both the parties promise to do something or they are obliged to perform some act or do something to another party. This is just opposite to unilateral contract in which only one party makes the promises. Example of bilateral contract is sale of goods in this contract the seller is bound to deliver the goods to the buyer and the buyer is responsible to make the payment to the seller.

Question 229

On which of the deposits, interest is not paid?

  1. AOption (a)

    current account deposit

  2. BOption (b)

    recurring deposit

  3. COption (c)

    fixed deposit

  4. DOption (d)

    saving bank deposit 

View answer & explanation

Correct answer

Answer: (a)A.

current account deposit

Why this answer is correct

Correct answer is Current account deposits.

Key Points

  • Current account deposits = A current account deposit is referred to the money deposited in the financial institution's current account. The current account is a type of deposit account held at a bank or financial institution to deposit the money and withdraw the same at any time. Due to this facility no interest is paid by the bank on the current deposit account. This account is used for the everyday transactions like payment of bills, making purchases, electronic transactions etc.
  • Recurring deposit = Recurring deposit is a type of deposit offered by the banks and the financial institutions. It is for those individuals who want to save regularly a fixed amount of money over a predetermined period. Interest is paid by the banks and the financial institutions at the rates fixed by the bank. The rate of interest are compounded quarterly or at other time as specified by the banks.
  • Fixed deposit = It is a type of deposit offered by the banks and the financial institutions that allows the individuals to deposit the amount for a fixed period at a predetermined interest rates. In fixed deposit the funds get locked for a specified period of time and the depositor receives the principal amount and the rate of interest at the end of the maturity period.
  • Saving bank deposit = Saving bank deposit is a deposit made by the depositor at the bank or at the financial institution. This type of account is use for the individuals to save the money while earning a rate of interest on the money deposited. These account provides a secure and accessible way for people to save money and earn interest also.

Question 230

What is the the first factor influencing a buyer's decision?

  1. AOption (a)

    education

  2. BOption (b)

    age

  3. COption (c)

    family

  4. DOption (d)

    occupation

View answer & explanation

Correct answer

Answer: (b)B.

age

Why this answer is correct

Correct answer is Age

Key Points

  • Factors affecting the buying decisions
  • Age = The first and the foremost factor that affect the buying decision of any commodity is the age. Different age have different characteristics that affect the buying decision. For example a child wants chocolates and ice creams while a person who is of old age will require medicines and the young people will be more interested in buying the branded things.
  • Education = The next factor that affect the buying decision is education. A person who is more educated will have a more higher life style and he can take more informed buying decision and will buy the more branded products as compared to the person who is less educated.
  • Family = Family can play a crucial role in shaping the buying behavior. Family members especially parents can influence the preference and taste of the other family members and the families social and the cultural practices and the budget of the family also influence the buying decision.
  • Occupation = Occupation and the economic status also influences the buying behavior because of their product choices and brand belief. Through occupation one can decide the spendable income, savings and the borrowing power and all this affects the buying behavior of the customer.
  • The other factors that affect the buying the decisions are role and status of the consumer, personality and self image, personal income, family income and the savings of the consumer.

Question 231

Read the given Assertion and Reasoning and select the correct option.

Assertion (A): Central tendency is the tendency of most raters to give average ratings to all or the center of the scale.

Reasoning (R): a very high rating or a very low rating could invite questions, criticisms or explanations.

  1. AOption (a)

    both assertion (A) and reasoning (R ) are true and Reason (R ) is the correct explanation of Assertion (A)

  2. BOption (b)

    Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

  3. COption (c)

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

  4. DOption (d)

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

View answer & explanation

Correct answer

Answer: (a)A.

both assertion (A) and reasoning (R ) are true and Reason (R ) is the correct explanation of Assertion (A)

Why this answer is correct

Correct answer is Both assertion (A) and reasoning (R ) are true and Reason (R ) is the correct explanation of Assertion (A)

Key Points

  • Assertion (A) = The assertion is true. Central tendency is the statistical technique to represent the center or the average of a set of data or it is the tendency of most raters to give average ratings to all or the center of the scale and not being affected by the extreme values in the data. There are three most commonly used measures of central tendency are mean, mode and median. Each measure of the central tendency provides a different perspective on the center of the distribution.
  • Reasoning (R) = The reasoning is also true and is the correct explanation of the assertion. As the central tendency gives the center of the scale any high rating or low rating to the data could invite various questions, criticism and explanations because then it means that it is unduly affected by the extreme value and data collected is not authentic enough to form an study

Question 232

The banker takes care of funds of the customer as a?

  1. AOption (a)

    correspondent

  2. BOption (b)

    executor

  3. COption (c)

    attorney

  4. DOption (d)

    Security Guard

View answer & explanation

Correct answer

Answer: (d)D.

Security Guard

Why this answer is correct

Correct answer is Security guard

Key Points

  • Security guard = The banker takes care of the customer as a security guard means they have a legal and ethical obligations to act in the best interest of the customer while handling the funds. As a security guard he should take care of the funds that they are not stolen or lost in any way and keep any information related to the funds confidential. Taking care of the funds is the fundamental responsibility of the banker so they should take care of the funds as a security guard.
  • Correspondent = In banking terms the correspondent means the financial institutions that provides services on behalf of other financial institutions where the banks may not have a physical presence. Banking correspondent helps to extend the financial services to remote and underserved areas. They act as intermediaries between the bank and the customers.
  • Attorney = Attorney is also known as lawyer, he is a professional who is given license to practice law and provide legal services to their clients. Attorneys are bound by the code of ethics that requires them to act in the best interest of their clients. Attorneys are no way related to the banking services.
  • Executor = An executor is a person appointed in a will to carry out the deceased person's wishes. This includes handling the financial matters, setting of the debts if any taken by the deceased person, payment of any tax which is due and distributing the assets to the beneficiaries. If any amount which is due to the deceased person shall be transferred to the executors account.

Question 233

In India, the first step towards building up a structure of development finance institutions was taken up with which establishment?

  1. AOption (a)

    Industrial Credit and Investment Corporation of India

  2. BOption (b)

    State Financial Corporations

  3. COption (c)

    Industrial Finance Corporation of India

  4. DOption (d)

    State Industrial Development Corporations

View answer & explanation

Correct answer

Answer: (c)C.

Industrial Finance Corporation of India

Why this answer is correct

Correct answer is Industrial Finance Corporation of India

Key Points

  • Industrial Credit and Investment Corporation of India = Also known as ICICI. It was a government institution which was established on 5 January 1955. It was formed as a joint venture of the world bank, India's public sector banks and the public sector insurance companies tp provide project financing to Indian industry. The main objectives of the ICICI bank was to provide credit facilities and to encourage and develop the new industries and to provide loans for the industrial projects in the private sector.
  • State Financial Corporations = A state financial corporation is a specialized financial institution that operates at the state level in India. These corporations are established under the State Financial Corporations Act, 1951. The primary objectives of these corporations is to promote the small and medium sized enterprise by providing them with financial assistance and various services.
  • Industrial Finance Corporation of India = IFCI is a financial institutions in India that was established in the year 1948. It was the first step towards building up the structure of development finance institution. It works as a development bank and plays an important role in providing financial assistance and support to the industrial projects. It provides various financial services like loans, underwriting of shares, guarantees and other forms of assistance.
  • State Industrial Development Corporations = The state industrial development corporations are established by the government at the state level. These corporations play an important role in providing the financial assistance for the industrial development in various states. It is established in the year 1995 under the business act, 1956.

Question 234

Insurance works on the principle of:

  1. AOption (a)

    Sharing of losses

  2. BOption (b)

    Probabilities

  3. COption (c)

    Large numbers

  4. DOption (d)

    Law of contract

View answer & explanation

Correct answer

Answer: (c)C.

Large numbers

Why this answer is correct

The correct answer is Large numbers.

Key Points

  • Insurance is primarily based on the Principle (Law) of Large Numbers.
  • This principle states that when a large number of people having similar types of risks are insured, the insurer can accurately estimate the expected number of losses and determine a suitable premium.
  • By covering a large pool of policyholders, the actual losses tend to be close to the expected losses, making the insurance business financially viable.
  • The principle of large numbers helps insurance companies in:
  • Estimating future claims with greater accuracy.
  • Fixing fair and reasonable premiums.
  • Reducing uncertainty and financial risk.
  • Hence, the correct answer is Option 3 – Large numbers.

Additional Information

  • Sharing of Losses: Insurance also involves spreading the financial loss of a few individuals among many policyholders through premium contributions. However, this is the objective or mechanism of insurance rather than its fundamental principle for risk estimation.
  • Probability: Probability theory is used by actuaries to assess risks and calculate premiums, but insurance fundamentally relies on the Law of Large Numbers to make these probability estimates reliable.
  • Law of Contract: An insurance policy is a legal contract between the insurer and the insured, but this governs the legal relationship and does not represent the basic operating principle of insurance.

Important Points

  • Fundamental Principle: Law of Large Numbers.
  • Main Objective: To predict future losses accurately by insuring a large number of similar risk exposures.
  • Key Insurance Principles: Utmost Good Faith (Uberrimae Fidei), Insurable Interest, Indemnity, Contribution, Subrogation, Proximate Cause, and Loss Minimization.
  • Exam Tip: If asked about the basic operating principle of insurance, the answer is Law of Large Numbers. If asked about the mechanism of insurance, the concept of sharing of losses is often emphasized.

Question 235

Which of the following statements is/are false?

A. The cash reserve ratio affects the credit creation.

B. Business conditions of the banks like inflation, depression, etc. affect the credit creation process.

C. Credit Policy of the Central bank affects the cash reserve ratio.

D. All the banks have the same nature and extent of programmes of credit sanction and disbursement.

  1. AOption (a)

    Only C is false

  2. BOption (b)

    Only D is false 

  3. COption (c)

    A and B are false

  4. DOption (d)

    Only A is false

View answer & explanation

Correct answer

Answer: (b)B.

Only D is false 

Why this answer is correct

Correct answer is Only D is false

Key Points

  • The cash reserve ratio affects the credit creation by affecting the amount of funds that the bank can lend. When the central bank that is RBI increases the CRR it mandates the bank to hold a higher percentage of deposits in reserve thereby reducing the amount available for lending and conversely when the RBI decreases the CRR the banks are required to hold a lower percentage of deposits in the reserves thereby increasing the amount of funds available for lending and credit creation.
  • Business conditions such as inflation, depression and interest rates can affect the credit creation of the economy. At the time of inflation the cost of goods and services increases so banks increases interest rate on loans to compensate for the decreasing value of money this can reduce the borrowing and slow down the credit creation while in case of depression individuals may face the borrowing difficulties and leads to decrease in borrowing banks in turn may decrease the interest rate so the credit may be created in the market and borrowing capacity can increase.
  • The credit policy of the bank can be tightening monetary policy and loosening monetary policy. In case of tightening monetary policy the RBI aims to control the inflation in this case the bank increases the CRR by doing so s high amount will go into reserve and lending will decrease. Conversely happens in case of loosening monetary policy the bank decreases the CRR so that the lending can increase and deflation reduces.

Question 236

Read the Assertion and Reasoning given and select the correct option

Assertion (A): Capital is treated as liability

Reasoning (R): Capital is treated as a liability due to money measurement concept.

  1. AOption (a)

    both assertion (A) and reasoning (R ) are true and Reason (R ) is the correct explanation of Assertion (A)

  2. BOption (b)

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

  3. COption (c)

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

  4. DOption (d)

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

View answer & explanation

Correct answer

Answer: (c)C.

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

Why this answer is correct

Correct answer is Assertion (A) is true but Reason (R) is false.

Key Points

  • Assertion (A) = This is true. The capital that is invested by the owner is treated as liability due to the principle of business entity. The principle states that business is considered to be a separate entity from its owners. All the business transactions are recorded in the books of account from the business point of view. Owners are considered as creditors of the company to the extent of their capital which is invested in the business and the business is under the obligation to repay the owner of the capital that's why the capital is shown as liabilities.
  • Reasoning (R) = This is false as the capital is treated as liability due to business entity concept whereas the money measurement concept states that only those transaction which can be measured in monetary terms are recorded in the books of account of the enterprise. For example if there is any conflict between the two department in the organization and due to that conflict if there is loss it should not be recorded because the loss due to that conflict cannot be measured in the monetary terms or if the owner becomes ill and due to that the company suffers heavy losses that should also not be recorded in the books as it cannot be measured in monetary terms.

Question 237

What is a program or policy of a company that aims to eliminate discrimination by providing equal opportunities and thereby improving his /her profession? 

  1. AOption (a)

    Affirmative action

  2. BOption (b)

    Inclusive growth

  3. COption (c)

    Performance appraisal

  4. DOption (d)

    Decentralisation 

View answer & explanation

Correct answer

Answer: (a)A.

Affirmative action

Why this answer is correct

Correct answer is Affirmative action

Key Points

  • Affirmative action = Affirmative action refers to the program or policies and initiatives that aims to eliminate discrimination by providing equal opportunities and to increase the representation of individuals from underrepresented groups in areas of employment, education and business. From the employment purpose affirmative action involves setting such targets and implementing the hiring practices in such a way to ensure that the individuals from the underrepresented groups have an equal and fair chance for the employment and thereby improving the profession.
  • Inclusive growth = Inclusive growth is an economic concept that ensures that there is equal distribution of all the economic benefits to all the segments of the society. It also takes into account the distribution of income, equal employment opportunities and equal access to essential services. Government often adopts the inclusive growth to create a sustainable development.
  • Performance appraisal = Performance appraisal also known as performance evaluation. It means the assessment of the individual's performance in a systematic way and overall contribution of the employees to the organization. Performance is measured against many factors such as job knowledge, quality and quantity of output produced by the employee, the leadership abilities and the supervision. Performance appraisals is done to identify the strength and weakness of the employees and assess the training and development needs.
  • Decentralization = Decentralization is the expansion of delegation of authority. Delegation of authority means giving responsibility and authority and creating accountability of the persons to whom the work is given. So under decentralization the number of decision making point increases because authority is delegated to middle level and lower level managers. Through decentralization the top management get some relief and it also develops the initiative among the subordinates.

Question 238

Equal remuneration act was enacted which prohibits discrimination in matters relating to remuneration on the basis of religion, region or gender. In which year was this act enacted?

  1. AOption (a)

    1981

  2. BOption (b)

    1965

  3. COption (c)

    1948

  4. DOption (d)

    1976

View answer & explanation

Correct answer

Answer: (d)D.

1976

Why this answer is correct

Correct answer is 1976

Key Points

  • Equal Remuneration Act was enacted in the year 1976. This act provides the payment of equal remuneration to men and women workers and to eliminate the discrimination. This act aims to prevent the discrimination in terms of remuneration not only on the gender basis but also on the basis of religion and region. The principle of this act was equal pay for equal work weather they are men or women or they are from any religion or region. This act is an important step towards the gender equality in the workplace.
  • Objectives of Equal Remuneration Act, 1976
  • The first and foremost objective is to provide equal pay and wages to men and women and equal treatment in employment.
  • This act should prohibit discrimination with any religion, region or sex related to recruitment, training and promotions in the company.
  • No women shall be dismissed from the workplace on the grounds only for the gender.

Question 239

A, B and C share profit and loss in the ratio 3 : 2 : 1, what will be the new profit sharing ratio of A and C, if B retiers from the business?

  1. AOption (a)

    3 : 2

  2. BOption (b)

    2 : 1

  3. COption (c)

    3 : 1

  4. DOption (d)

    1 : 3

View answer & explanation

Correct answer

Answer: (c)C.

3 : 1

Why this answer is correct

Correct answer is 3 : 1

Key Points

  • Retirement = Retirement means the partner is retiring from the partnership firm and the reconstitution of the partnership firm under which old partnership comes to an end and new partnership among the remaining partner comes into existence. The retirement of partner leads to change in profit and loss ratio among the remaining partners.
  • New profit sharing ratio = The new profit sharing ratio on the retirement of a partner means the ratio in which the remaining partners will share the profit and losses of the company.
  • New share of the partner = Old share + Acquired share
  • New profit sharing ratio upon retirement may have to be determined when
  • The new profit sharing ratio is not given
  • The remaining partners acquire the ratio of the retiring partner in a specified ratio
  • In this particular question one partner that is B is retiring and the new profit ratio of the remaining partners that is A and C is not given so it is presumed that the remaining partners will share the profit and losses in their old ratio
  • Old profit sharing ratio of A, B, C are 3 : 2 : 1
  • After B retires then the new profit sharing ratio between A and C will remain same as before the retirement that is  3 : 1

Question 240

What is the maturity term for most of the treasury bills when issued? 

  1. AOption (a)

    60 days

  2. BOption (b)

    81 days

  3. COption (c)

    91 days

  4. DOption (d)

    90 days

View answer & explanation

Correct answer

Answer: (c)C.

91 days

Why this answer is correct

Correct answer is 91 days

Key Points

  • Treasury bills =   It is a document issued by the RBI on behalf of the central government for meeting its temporary deficits and financing its assets. It is highly secured and liquid because guarantee of repayment is assured by the RBI. It is usually issued for 91 days that's why it is a short term instrument.
  • Features of treasury bills
  • Maturity period = Treasury bills are short term instruments which are usually and most commonly issued for a period of 91 days but it can be issued for 182 days and 364 days also.
  • Issued by the RBI = Treasury bills are issued by the RBI on behalf of the central government for meeting its temporary deficits and financing its assets.
  • Low risk = As the treasury bills are issued by the RBI they are more secured than any other bills and have a very low amount of risk.
  • Advantages of treasury bills
  • Risk free = As they are issued by central bank of India there is no risk. Such tools act as a liability to the Indian Government as they need to be repaid within the stipulated date.
  • Liquidity = A government treasury bill is a short term financing tool for the government and has a maturity period of 91 days to 364 days.
  • Higher return = Treasury bills provides higher return to the government than any other type of securities and that to without any risk.

Discipline 8 (20 questions)

Question 241

Which of the following does not fall under the accepted classification of Standard Industrial Classification (SIC) Code?

  1. AOption (a)

    Transportation 

  2. BOption (b)

    Mining

  3. COption (c)

    communication

  4. DOption (d)

    agriculture

View answer & explanation

Correct answer

Answer: (a)A.

Transportation 

Why this answer is correct

Correct answer is Transportation

Key Points

  • Standard Industrial Classification  = It is a system of classifying the industries by a four digit code as a method of standardizing the industry classification for the statistical purposes. It is used by the government to classify the industrial areas.
  • The Standard Industrial Classification Code classifies the economy into 11 major divisions which are agriculture forestry and fishing, mining, construction, manufacturing, transportation and public utilities, wholesale trade, retail trade, finance insurance and real estate, services, public administration and non classifiable.
  • Uses of SIC codes = The various bureau, agencies and administration uses SIC code in their reporting and they are also used in academic and business sectors. The SIC codes are used to report the work force and pricing issues in the economy.
  • Limitations of SIC codes
  • The first limitation surrounds with the definition and mistaken classifications of the employee groups.
  • The second limitation is related with the emerging new industries that is from manufacturing based industries to service based industries.
  • The third limitation is that codes were developed for the traditional industries before 1970 and not for the new and emerging industries.

Question 242

Which of the following is a significant justification for insurers to sell life insurance strategies through agents?

  1. AOption (a)

    The advantages of life insurance policy are basic and clear to all 

  2. BOption (b)

    Individuals can choose which strategy is best for them

  3. COption (c)

    Agents have to meet their marketing targets

  4. DOption (d)

    Many people require personalised guidance for selecting the right policy 

View answer & explanation

Correct answer

Answer: (d)D.

Many people require personalised guidance for selecting the right policy 

Why this answer is correct

Correct answer is Many people require personalized guidance for selecting the right policy

Key Points

  • Life insurance = Life insurance is a contract under which fixed amount is paid to the insurance company in case of happening of an event in lieu of fixed premium to provide security against the risk related to the human lives.
  • The significant justification for insurers to sell life insurance strategies through the agents is that many people require the personalized guidance for selecting the right policy because
  • life insurance is a necessity rather than luxury
  • life insurance is a representation of affection towards independents.
  • policyholders got to known all the policy details regarding their life.
  • Need for life insurance policy
  • The risk of death is covered by the life insurance policy as the insurance company pays the sum assured which would be several times larger than the premium paid.
  • Life insurance policy encourages the essential savings for the family members in case something uncertain happens.
  • If a policyholder is not in a position to pay a sum of premium then he can surrender the policy for a cash so it provides the liquidity to the policyholders.
  • The policyholder can take a loan from the commercial bank for a temporary period on the basis of life insurance policy.

Question 243

Reconstituion of partnership is:

  1. AOption (a)

    Additional capital introduced by partner

  2. BOption (b)

    Allowing interest on capital 

  3. COption (c)

    Change in profit sharing ratio of partners

  4. DOption (d)

    to raise goodwill account by its value

View answer & explanation

Correct answer

Answer: (c)C.

Change in profit sharing ratio of partners

Why this answer is correct

Correct answer is Change in profit sharing ratio of partners.

Key Points

  • Reconstitution of partnership = Partnership agreement defines the relationship among the partners in the firm and whenever there is any change in the terms of agreement it results into reconstitution of firm. In other words if there is any change in the existing agreement of the partnership firm the existing agreement comes to an end and new agreements comes into existence but the firm continues to operate.
  • The firm is reconstituted in the following events
  • If any new partner is admitted to the firm then the existing agreements will come to an end and new agreements will form so the firm will be reconstituted.
  • If any partner gets the retirement from the firm either voluntarily or due to any agreement then the new agreements has to be formed and the partnership will be reconstituted.
  • If there is death of any partner then also the firm is reconstituted.
  • If the partners mutually decides to change the profit sharing ratio among them then also the firm is reconstituted because the new agreements will be formed.
  • If there is any amalgamation between two or more partnership firms then the existing agreement will come to an end and the firm will be reconstituted.
  • In case of the additional capital introduced and interest on capital and to raise the value of goodwill there is no change in the existing agreements of the partnership firm so there is no need to reconstitute the partnership firm.

Question 244

Identify which of the following statements is/are true?

A. There can be a stranger to a contract and consideration.

B. There can be a stranger to a contract.

C. There can be a stranger to consideration.

D. There cannot be a stranger to any contract.

  1. AOption (a)

    C is true 

  2. BOption (b)

    B is true

  3. COption (c)

    A is true

  4. DOption (d)

    D is true

View answer & explanation

Correct answer

Answer: (a)A.

C is true 

Why this answer is correct

Correct answer is C is true

Key Points

  • The Indian Contract Act 1872 allows the consideration for an agreement to proceed from a third party also known as stranger. In contract law consideration refers to something of value that is promised by one party in exchange for something by the other party. A stranger to consideration is someone who is not a party to a contract that is stranger but provided something of value to the other party. A stranger to consideration can sue the party who received the benefit. Such person cannot sue the other party for breach of contract because they have no legal relationship with the parties to the contract.
  • A stranger to a contract is a person who is not a party to the contract and who is not involved in the negotiation and formation of the contract but can be affected by the terms of the agreement. This concept is important because it highlights the potential impact that a stranger can have who is not directly involved in the contract. So a person can be a stranger to a contract and cannot be a stranger to the contract depending on the circumstances.

Question 245

Who first gave the concept of MBO to the world in 1954? 

  1. AOption (a)

    Dale Yoder

  2. BOption (b)

    Peter F. Drucker

  3. COption (c)

    Edwin B. Flippo

  4. DOption (d)

    Dales S beech

View answer & explanation

Correct answer

Answer: (b)B.

Peter F. Drucker

Why this answer is correct

Correct answer is Peter F. Drucker.

Key Points

  • The concept of Management by Objective (MBO) was given by the Peter F. Drucker in the year 1954. Management By Objective is a philosophy of management that emphasizes setting specific and measurable objectives for employees to achieve. It is a process in which a manager and the employees agree on specific goals and the performance of the company and to plan the actions to reach them.
  • It is a five step process which includes : define the objectives, share them with the employees, then encourage the employees to participate, monitor progress and then finally evaluate the performance and reward the achievements.
  • Advantages of Management By Objectives 
  • Employees take initiative in the work and take pride in their work so that they come to known about their strengths, skills and educational experience.
  • Communication between the management and the employees is increased and they began to enjoy there work.
  • Management can create goals that can lead to the success of the company.
  • Assigning goals to the employees bring a sense of importance to the employees which helps to boost there output and bring loyalty to the company.
  • Disadvantages of MBO
  • An MBO is focused only on the goals and ignores other parts of the company such as culture, healthy work ethos..
  • A huge pressure is increased on the employees to achieve the goals of the company.
  • If a management relies only on the MBO for its management practices then that will be problem for the company because all the activities are not included in the MBO.

Question 246

Exemptions for newly established industrial undertaking in free trade zones is mentioned in which section?

  1. AOption (a)

    Section 10(A) 

  2. BOption (b)

    Section 10(AA)

  3. COption (c)

    Section 10(B) 

  4. DOption (d)

    Section 10 (BA)

View answer & explanation

Correct answer

Answer: (a)A.

Section 10(A) 

Why this answer is correct

The correct answer is Section 10(A).

Key Points

  • Section 10(A) provides tax incentives to industries set up in free trade zones (FTZs), software technology parks (STPs), electronic hardware technology parks (EHTPs), etc., to boost exports and generate employment.
  • The exemption under this section is aimed at promoting exports by offering tax holidays for a certain period, which makes it an attractive option for new industrial undertakings.

Additional Information

  • Tax incentives under Section 10(A) are part of a broader strategy by the government to enhance the country's export capabilities and economic development by leveraging the benefits offered in free trade and special economic zones.
  • Conclusion: Thus, Section 10(A) is the correct answer as it specifically outlines the tax exemptions for newly established industrial undertakings in free trade zones, playing a critical role in encouraging the establishment of industries in these zones.

Question 247

What is mentioned under Sec- 44AE of the Income Tax Act, 1961? 

  1. AOption (a)

    Special Provisions for Computing Profits and gains of small business of civil construction,

  2. BOption (b)

    Expenses deductible from commission earned by insurance agents etc. 

  3. COption (c)

    Special Provisions for Computing Profits and gains of business of plying, hiring or leasing goods carriages

  4. DOption (d)

    Meaning of capital gains

View answer & explanation

Correct answer

Answer: (c)C.

Special Provisions for Computing Profits and gains of business of plying, hiring or leasing goods carriages

Why this answer is correct

The correct answer is Special Provisions for Computing Profits and gains of business of plying, hiring or leasing goods carriages.

Key Points

  • Section 44AE of the Income Tax Act, 1961, is designed to simplify the tax calculation process for specific businesses. It aims at providing a more straightforward method for assessing profits and gains from certain types of businesses.
  • This provision specifically applies to businesses involved in plying, hiring, or leasing goods carriages.
  • It offers a presumptive income scheme, where income is estimated based on a predetermined amount per vehicle, rather than the actual detailed accounts of the business.
  • The goal is to reduce compliance burdens for smaller businesses in this sector, making tax filing more accessible and less time-consuming.
  • This section benefits small to medium-sized enterprises (SMEs) by allowing them to focus more on their operations rather than intricate tax calculations.

Additional Information

  • This provision is part of a broader set of rules under the Income Tax Act aimed at facilitating easier compliance and encouraging small business growth. Other sections, like 44AD, similarly provide for presumptive taxation but cater to different types of businesses.
  • Section 44AE of the Income Tax Act, 1961, plays a crucial role in simplifying the tax filing process for businesses engaged in plying, hiring, or leasing goods carriages. By opting for this presumptive taxation scheme, eligible businesses can benefit from a more straightforward and less burdensome method of calculating their tax liabilities.

Question 248

The premium on issue of debentures is showed in Balance Sheet under -

  1. AOption (a)

    share capital

  2. BOption (b)

    reserve and surplus

  3. COption (c)

    secured loan

  4. DOption (d)

    current liabilities 

View answer & explanation

Correct answer

Answer: (b)B.

reserve and surplus

Why this answer is correct

Introduction:

The premium on the issue of debentures refers to the amount received by a company over and above the face value of its debentures. This extra amount is accounted for in the company's financial statements.

 

Key Points

:

  1. Share Capital: Represents the equity stake owned by shareholders in the company. The premium on debentures does not fall under this category as it is not related to equity financing.

  2. Reserve and Surplus: This is where the premium on the issue of debentures is recorded. It represents additional funds that are not designated for a specific purpose but can be used for various needs, including the strengthening of the company's financial position.

  3. Secured Loan: Debentures can be secured or unsecured, but the premium received from their issue does not classify as a loan itself.

  4. Current Liabilities: These are the company's debts or obligations due within one year. The premium on issue of debentures does not qualify as a liability.

Conclusion:

The correct placement for the premium on the issue of debentures is under the "Reserve and Surplus" category in the Balance Sheet. This is because it represents additional funds available to the company, which are not immediately required to be paid back or used.

 

Additional Info

rmation:

Recording the premium under "Reserve and Surplus" not only accurately reflects the nature of these funds but also strengthens the company's financial statements by showing additional resources available for future use or investment.

Question 249

Reader's Digest magazine offers diaries to its regular subscribers for introducing new subscribers. Which method of conditional premium of consumer promotion is this an example of? 

  1. AOption (a)

    Coupon Premium Plan

  2. BOption (b)

    Consumer Contests

  3. COption (c)

    Refill packs

  4. DOption (d)

    User to User scheme

View answer & explanation

Correct answer

Answer: (d)D.

User to User scheme

Why this answer is correct

The correct answer is User to User scheme.

Key Points

  • The question pertains to a specific method of consumer promotion utilized by Reader's Digest magazine to encourage its existing subscribers to introduce new subscribers by offering diaries as a conditional premium.
  • Conditional premiums are incentives offered to consumers under certain conditions to stimulate purchases or actions.
  • The Reader's Digest strategy involves rewarding current subscribers for their role in gaining new subscribers, which is a direct person-to-person promotional effort.
  • This method leverages the existing customer base to expand the readership through a reward mechanism.

Question 250

Which trade promotion leads to quick profits for wholesalers and retailers?

  1. AOption (a)

    Merchandise deals

  2. BOption (b)

    gift to dealers

  3. COption (c)

    cooperative advertising

  4. DOption (d)

    price deals

View answer & explanation

Correct answer

Answer: (d)D.

price deals

Why this answer is correct

The correct answer is price deals.

Key Points

  • Trade promotions are strategic marketing activities aimed at boosting sales and enhancing product visibility among wholesalers and retailers.
  • Among the various types of trade promotions, each serves a distinct purpose in stimulating market demand and encouraging bulk purchases.

Additional Information

  • Merchandise Deals often involve offering additional products for free or at a reduced price but don't necessarily result in immediate profit increases.
  • Gifts to Dealers are incentives for stocking up on products but might not directly influence short-term sales or profits.
  • Cooperative Advertising is a long-term strategy to enhance brand recognition and sales through shared advertising costs, not designed for quick profit gains.
  • Price Deals, the correct answer, directly impact the purchasing decisions of wholesalers and retailers by reducing the cost of goods for a limited time, encouraging bulk purchases, and leading to quick turnover and profits due to the increased volume of sales and reduced prices.

Question 251

Which of the following is not a benefit of Human source Information System (HRIS)?

  1. AOption (a)

    Higher speed of retrieval of information

  2. BOption (b)

    Quality of response depending on the accuracy of the input

  3. COption (c)

    Higher accuracy of information 

  4. DOption (d)

    Reduction in duplication

View answer & explanation

Correct answer

Answer: (b)B.

Quality of response depending on the accuracy of the input

Why this answer is correct

The correct answer is Quality of response depending on the accuracy of the input.

Key Points

  • Human Resource Information Systems (HRIS) are designed to streamline and enhance the management of human resources in organizations.
  • They offer various benefits, including improved efficiency and accuracy in handling HR-related data.
  • HRIS provides higher speed of retrieval of information, making it quicker for HR professionals to access employee data and reports.
  • It ensures higher accuracy of information by minimizing human errors in data entry and processing.
  • HRIS reduces duplication of efforts and data, saving time and resources.
  • Quality of response in HRIS indeed depends on the accuracy of the input data.
  • However, this is not a direct benefit of HRIS but rather a conditional factor that affects its effectiveness. The quality of output is contingent upon the quality of input, making this option stand out as not a direct benefit but an operational prerequisite.

Question 252

Preeti is a person who is usually of unsound mind, but occasionally of sound mind. Can she make a contract?

  1. AOption (a)

    No, she cannot make a contract

  2. BOption (b)

    She can always make a contract

  3. COption (c)

    She can make a contract when she is sound mind 

  4. DOption (d)

    Cannot be determined

View answer & explanation

Correct answer

Answer: (c)C.

She can make a contract when she is sound mind 

Why this answer is correct

The correct answer is She can make a contract when she is sound mind.

Key Points

  • The question revolves around the capacity of Preeti, a person with fluctuating mental health, to enter into a contractual agreement. The legality of contracts made by individuals with varying mental capacities is a nuanced topic in contract law.
  • The general rule in contract law stipulates that for a contract to be valid, the parties involved must have the capacity to contract. This typically means they must be of sound mind, understanding the nature and consequences of their actions.
  • Individuals who are usually of unsound mind but have periods of lucidity (sound mind) can indeed enter into contracts during those lucid intervals. The law recognizes contracts made by such individuals as valid, provided they were of sound mind at the time of making the contract.

Question 253

Which bank first evolved the function of clearance, settlements and transfer of mutual claims? 

  1. AOption (a)

    Bank of Venice

  2. BOption (b)

    Bank of Ancient Rome 

  3. COption (c)

    Bank of England 

  4. DOption (d)

    World bank

View answer & explanation

Correct answer

Answer: (c)C.

Bank of England 

Why this answer is correct

The correct answer is Bank of England.

Key Points

  • The concept of clearing, settlements, and transfer of mutual claims is fundamental to modern banking systems, facilitating efficient financial transactions across various entities.
  • Among the historical institutions, one bank stands out as the pioneer in evolving these functions.
  • The Bank of England, established in 1694, played a crucial role in the development of modern banking practices, including clearance, settlements, and transfer of mutual claims.
  • This institution was founded to act as the English Government's banker and debt-manager, which naturally led it to innovate in financial transaction processes.
  • The Bank of England's early adoption of these functions helped in streamlining financial transactions, reducing risk, and increasing the speed of money circulation within the economy.

Question 254

What percentage of tax is taxable on long-term capital gain arising from transfer of securities, bonds, units, debenture?

  1. AOption (a)

    10 percent

  2. BOption (b)

    20 percent

  3. COption (c)

    5 percent

  4. DOption (d)

    12 percent

View answer & explanation

Correct answer

Answer: (a)A.

10 percent

Why this answer is correct

The correct answer is 10 percent.

Key Points

  • Long-term capital gains (LTCG) tax is levied on the profit generated from the sale of assets or securities held for a specific period.
  • The rate varies depending on the type of asset and the jurisdiction. When it comes to securities, bonds, units, and debentures, understanding the applicable tax rate is crucial for investors.

Additional Information

  • Tax Rate: For long-term capital gains arising from the transfer of securities, bonds, units, and debentures, the applicable tax rate is 10 percent. This rate applies without the benefit of indexation.
  • Long-Term Definition: Typically, assets held for more than a year qualify as long-term, but this duration can vary based on jurisdiction and asset type.
  • Impact on Investors: Knowing the tax rate helps investors in planning their investments and tax liabilities more effectively. The 10 percent rate is intended to encourage long-term investments.

Question 255

Industrial Finance Corporation of India (lFCl) is managed by a Board of Directors, which consists of partly elected and partly nominated directors. The Central Government appoints the whole-time Chairman of the Board in consultation with the Industrial Development Bank of India (IDBI). How many directors are appointed by the Reserve Bank of India?

  1. AOption (a)

    Two directors

  2. BOption (b)

    One director

  3. COption (c)

    Three directors

  4. DOption (d)

    Reserve Bank of India does not appoint directors 

View answer & explanation

Correct answer

Answer: (b)B.

One director

Why this answer is correct

The correct answer is One director.

Key Points

  • The Industrial Finance Corporation of India (IFCI) is a significant financial institution in India, primarily focused on providing industrial finance.
  • The governance of IFCI involves a blend of elected and nominated directors on its Board, with key appointments being made by the Central Government and consultations involving the Industrial Development Bank of India (IDBI).
  • The Board of Directors at IFCI is composed of individuals who are both elected and nominated, ensuring a mix of expertise and governance oversight.
  • The appointment of the whole-time Chairman of the Board is made by the Central Government in consultation with IDBI, highlighting the role of governmental bodies in the governance of IFCI.
  • The Reserve Bank of India (RBI), which is the central banking institution of the country, also plays a role in the governance structure of IFCI. However, contrary to some beliefs, the RBI does not appoint any directors to the Board of IFCI.

Question 256

Which of the following statements is false?

  1. AOption (a)

    Borrowers are the issuers of debt instruments in the form of Promissory Notes, Bonds and Commercial Paper.

  2. BOption (b)

    The needs of borrowers differ in terms of amounts, the length or period for which borrowings are needed, and the currency in which borrowings are raised. 

  3. COption (c)

    International finance focuses on areas such as foreign direct investment and currency exchange rates. 

  4. DOption (d)

    When the dollar rises in value relative to a foreign currency, the current assets and current liabilities of a U.S. foreign subsidiary increase in dollar value 

View answer & explanation

Correct answer

Answer: (d)D.

When the dollar rises in value relative to a foreign currency, the current assets and current liabilities of a U.S. foreign subsidiary increase in dollar value 

Why this answer is correct

The correct answer is When the dollar rises in value relative to a foreign currency, the current assets and current liabilities of a U.S. foreign subsidiary increase in dollar value. 

Key Points

  • Statement 1, 2, and 3 are correct. Borrowers indeed issue debt instruments like Promissory Notes, Bonds, and Commercial Paper.
  • The needs of borrowers vary significantly in terms of amount, duration, and currency of borrowings. International finance does cover areas such as foreign direct investment and currency exchange rates.
  • The false statement is 4, which claims that when the dollar rises in value relative to a foreign currency, both the current assets and current liabilities of a U.S.
  • foreign subsidiary increase in dollar value. In reality, the impact of a rising dollar on the dollar value of a foreign subsidiary's assets and liabilities is more nuanced.
  • A rising dollar typically decreases the dollar value of foreign-denominated assets and liabilities when converted back to dollars, not increases them.
  • This is because each unit of foreign currency converts into fewer dollars, reducing the U.S. dollar value of those assets and liabilities.

Question 257

Which of the following is Adam Smith's definition of the concept of price?

  1. AOption (a)

    price is the exchange value of a product expressed in terms of rupees or any other monetary unit. 

  2. BOption (b)

    the price of everything, what everything really costs, is the toil and trouble of acquiring it.

  3. COption (c)

    Pricing is a very important aspect in the marketing as it directly affect the sales and profits of the company. 

  4. DOption (d)

    Price is an important element of marketing. After developing a product, the next thing a company has to decide is the price.

View answer & explanation

Correct answer

Answer: (b)B.

the price of everything, what everything really costs, is the toil and trouble of acquiring it.

Why this answer is correct

The correct answer is the price of everything, what everything really costs, is the toil and trouble of acquiring it.

Key Points

  • Adam Smith, often referred to as the father of modern economics, provided a comprehensive definition of the concept of price in his seminal work, "The Wealth of Nations."
  • His definition emphasizes the effort and sacrifice involved in acquiring a product or service.
  • Smith's definition moves beyond the simple monetary value of an item, focusing instead on the "toil and trouble" of acquiring it.
  • This perspective highlights the labor and effort required to obtain something, making it a more holistic way of understanding price.
  • This approach to defining price underscores the subjective nature of value, suggesting that the real cost of any item is tied to the personal effort and sacrifice one must make to obtain it.
  • Smith's definition reflects a foundational economic principle that the value of goods and services is not just determined by market prices but also by the human effort invested in their production and acquisition.

Question 258

The intrinsic value of a bond or any fixed income security is ______ the present value of the expected cash flows. 

  1. AOption (a)

    more than

  2. BOption (b)

    equal to

  3. COption (c)

    less than

  4. DOption (d)

    not related to

View answer & explanation

Correct answer

Answer: (b)B.

equal to

Why this answer is correct

The correct answer is equal to.

Key Points

  • The intrinsic value of a bond or any fixed-income security is a fundamental concept in finance, reflecting the actual value derived from its expected cash flows.
  • This value is crucial for investors seeking to assess the worth of their investments accurately.
  • The intrinsic value is determined by discounting the expected future cash flows of the bond back to their present value.
  • This includes all coupon payments and the principal repayment at maturity.
  • It is based on the premise that the value of money today is not the same as the value of money in the future due to inflation and the opportunity cost of capital.
  • The discount rate used is typically the required rate of return by the investor, which reflects the risk associated with the bond.
  • An accurate calculation of intrinsic value allows investors to compare the bond's current market price with its intrinsic value, aiding in investment decisions.

Question 259

Read the Assertion and Reasoning and select the correct option.

Assertion (A): Bank rate is also called as credit rate.

Reasoning (R): Banks need funds to expand credit facilities to their clients, specially during busy season.

  1. AOption (a)

    both assertion (A) and reasoning (R ) are true and Reason (R ) is the correct explanation of Assertion (A)

  2. BOption (b)

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

  3. COption (c)

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

  4. DOption (d)

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

View answer & explanation

Correct answer

Answer: (d)D.

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

Why this answer is correct

The correct answer is Assertion (A) is false but Reason (R) is true.

Key Points

  • The bank rate, often referred to as the discount rate in some countries, is the rate at which the central bank of a country lends money to commercial banks. It influences the lending rates that banks offer to their customers, thereby affecting the overall credit availability and economic activity.
  • The assertion that the bank rate is also called the credit rate is not accurate. While both terms relate to banking and finance, they are not synonymous.
  • The bank rate specifically refers to the rate charged by the central bank, whereas "credit rate" is a more generic term that could refer to various interest rates related to credit.
  • The reasoning given highlights a truth about banking operations. Banks indeed require funds to expand credit facilities, especially during times of high demand such as the busy season.
  • This is because increased lending capabilities can help stimulate economic growth by allowing businesses and consumers to borrow more for investment and spending.

Question 260

The Hawthorne studies were aimed at finding out the factors that really influenced the productivity and work performance of labourers. Under which of the following management approaches this study was conducted by Elton Mayo and his associates?

  1. AOption (a)

    Behavioural Approach

  2. BOption (b)

    Contingency Approach 

  3. COption (c)

    Human Relations Approach

  4. DOption (d)

    Modern Systems Approach

View answer & explanation

Correct answer

Answer: (c)C.

Human Relations Approach

Why this answer is correct

The correct answer is Human Relations Approach.

Key Points

  • The Hawthorne studies, conducted by Elton Mayo and his associates, were pivotal in the evolution of management thought.
  • They marked a significant shift in the understanding of workplace dynamics, focusing on the social and psychological aspects of labor.
  • The studies were carried out at the Hawthorne Works plant of the Western Electric Company between 1924 and 1932.
  • Their initial aim was to examine the effects of physical work conditions on productivity.
  • However, the findings revealed unexpected results, showing that social and psychological factors, such as feeling valued and part of a cohesive group, had a more substantial impact on productivity than physical conditions or financial incentives.
  • This led to the recognition of the importance of human relations in the workplace, emphasizing the need for managers to consider workers' emotional and social needs.

Discipline 9 (20 questions)

Question 261

What are the web sites that aggregate information across the entire organization or for groups within the organization such as project teams called?

  1. AOption (a)

    Groupware

  2. BOption (b)

    Enterprise Portals

  3. COption (c)

    Content/Document Management systems

  4. DOption (d)

    Workflow systems

View answer & explanation

Correct answer

Answer: (b)B.

Enterprise Portals

Why this answer is correct

The correct answer is Enterprise Portals.

Key Points

  • Enterprise Portals are specialized web sites designed to gather and present information from various sources within an organization.
  • These portals serve as a centralized platform for employees to access a wide range of resources, data, and tools needed for their daily tasks and collaborative projects.
  • Enterprise Portals aggregate information across the entire organization, making it easier for employees to find and use information relevant to their work.
  • They support customization and personalization, allowing users to tailor the interface and content according to their specific roles and preferences.
  • These portals often include features like search engines, content management systems, and collaboration tools to enhance productivity and communication within the organization.
  • By providing a single access point to various systems and applications, Enterprise Portals help in streamlining workflows and improving efficiency.

Question 262

Under which section of the contract act is 'Agent' defined?

  1. AOption (a)

    section 182

  2. BOption (b)

    section 192

  3. COption (c)

    section 152

  4. DOption (d)

    section 172

View answer & explanation

Correct answer

Answer: (a)A.

section 182

Why this answer is correct

The correct answer is section 182.

Key Points

  • According to the given options, the correct section that defines 'Agent' within the contract act is section 182.
  • This section clearly outlines the role, responsibilities, and the nature of the relationship between an agent and their principal.
  • Thus, section 182 of the contract act is pivotal as it provides the legal foundation for the concept of agency in contract law.
  • This understanding is essential for both legal practitioners and individuals engaging in contractual agreements involving agents.

Question 263

The importance of central bank's function as the lender of the last resort was stressed by Walter Bagehot in which year?

  1. AOption (a)

    1870

  2. BOption (b)

    1871

  3. COption (c)

    1872

  4. DOption (d)

    1873

View answer & explanation

Correct answer

Answer: (d)D.

1873

Why this answer is correct

The correct answer is 1873.

Key Points

  • Walter Bagehot, a prominent British journalist and economist, emphasized the pivotal role of the central bank as the lender of last resort to prevent financial crises and ensure stability in the banking sector.
  • Bagehot articulated this principle in the year 1873.
  • He outlined this concept in his seminal work "Lombard Street: A Description of the Money Market."
  • Bagehot's idea was that in times of financial panic, the central bank should lend freely to solvent banks against good collateral and at high rates.
  • This would prevent liquidity crises from turning into solvency crises.
  • Bagehot's principles continue to influence modern central banking, particularly in how central banks respond to financial crises.
  • His work laid the foundation for how central banks operate, emphasizing the need for them to act decisively to prevent broader economic downturns during periods of financial distress.

Question 264

Which statement from the following is false?

  1. AOption (a)

    Coupon rate debenture has variable rate of interest

  2. BOption (b)

    Bearer debentures can be transferred to any person

  3. COption (c)

    Mortgaged debentures are called secured debentures

  4. DOption (d)

    Company can issue debentures for consideration other than cash

View answer & explanation

Correct answer

Answer: (a)A.

Coupon rate debenture has variable rate of interest

Why this answer is correct

The correct answer is Coupon rate debenture has a variable rate of interest.

Key Points

  • Coupon rate debenture has a variable rate of interest:
  • This statement is false. Coupon rate debentures typically have a fixed rate of interest paid periodically to the debenture holders.
  • The coupon rate is the annual interest rate paid on a bond, expressed as a percentage of the face value.
  • Variable or floating rate debentures have interest rates that can change over time, based on a benchmark interest rate or index.

Additional Information

  • Bearer debentures can be transferred to any person:
  • This is correct. Bearer debentures are not registered to a specific holder, and ownership is transferred by mere delivery of the debenture certificate.
  • Mortgaged debentures are called secured debentures:
  • This is true. Mortgaged debentures are backed by the assets of the issuing company, providing security to the debenture holders in case of default.
  • Company can issue debentures for consideration other than cash:
  • This statement is accurate. Companies can issue debentures in exchange for non-cash considerations such as assets or services, enabling flexibility in financial structuring.

Question 265

The errors on one side of the ledger account are compensated by errors of the same amounts on the other side or on the same side. Which error is being talked about?

  1. AOption (a)

    compensatory errors

  2. BOption (b)

    compensating errors

  3. COption (c)

    errors of commission

  4. DOption (d)

    Error of principle 

View answer & explanation

Correct answer

Answer: (b)B.

compensating errors

Why this answer is correct

The correct answer compensating errors.

Key Points

  • Compensatory errors, also known as compensating errors, are mistakes in accounting records that neutralize each other's impact on the financial statements.
  • These errors do not affect the trial balance since the sum of debits remains equal to the sum of credits, despite the inaccuracies.
  • Identifying compensating errors can be challenging because the trial balance may appear balanced, masking the presence of inaccuracies.

Conclusion:

  • The correct answer is option 2, "compensating errors." This term accurately describes the scenario where errors on one side of the ledger account are offset by errors of the same amounts on the other side or on the same side, ensuring the trial balance remains unaffected.

Question 266

Who announces the foreign trade policy in india?

  1. AOption (a)

    Reserve bank of india

  2. BOption (b)

    FEDAI

  3. COption (c)

    ministry of commerce 

  4. DOption (d)

    Ministry of finance 

View answer & explanation

Correct answer

Answer: (c)C.

ministry of commerce 

Why this answer is correct

The correct answer is ministry of commerce.

Key Points

  • The Foreign Trade Policy (FTP) plays a crucial role in shaping India's international trade framework, outlining the country's strategy for exports and imports. The announcement and formulation of this policy are vital for fostering economic growth and global trade relations.
  • The Ministry of Commerce undefined Industry, through the Directorate General of Foreign Trade (DGFT), is primarily responsible for the formulation and implementation of the FTP in India.

Additional Information

  • The FTP is usually announced every five years, with interim reviews and updates to address the dynamic nature of global trade, economic challenges, and opportunities.
  • The policy is a comprehensive document that guides India's trade relations and aims at enhancing economic growth and employment generation.
  • The policy aims to enhance the country's export potential, improve trade performance, and increase the global competitiveness of Indian products and services.
  • It encompasses various incentives, guidelines, and norms that govern India's trade with other countries, including export promotion measures, trade facilitation, and regulatory mechanisms.

Question 267

Who stipulates the rate of interest in savings bank account? 

  1. AOption (a)

    Concerned bank

  2. BOption (b)

    RBI

  3. COption (c)

    Government of India

  4. DOption (d)

    Indian bank association

View answer & explanation

Correct answer

Answer: (a)A.

Concerned bank

Why this answer is correct

The correct answer is Concerned bank.

Key Points

  • The Reserve Bank of India (RBI) plays a pivotal role in the country's banking sector, regulating its operations and ensuring financial stability.
  • The Government of India oversees the economic policy and has a significant influence on banking regulations.
  • The Indian Banks' Association (IBA) is a representative body of management of banking in India, operating under the aegis of the RBI and the Ministry of Finance.
  • However, when it comes to the rate of interest on savings bank accounts, it is the individual banks that have the autonomy to stipulate these rates, within the regulatory framework established by the RBI.
  • This autonomy allows banks to attract customers through competitive interest rates, fostering a more dynamic and customer-oriented banking environment. However, these rates are also subject to the guidelines and regulatory frameworks established by the RBI to ensure financial stability and protect depositors' interests.

Question 268

In India currency notes are issued by: 

  1. AOption (a)

    RBI

  2. BOption (b)

    Government of India

  3. COption (c)

    Central Bank of India

  4. DOption (d)

    Axis Bank

View answer & explanation

Correct answer

Answer: (a)A.

RBI

Why this answer is correct

The correct answer is RBI.

Key Points

  • The Reserve Bank of India (RBI) is the central banking institution of India, which controls the issuance and supply of the Indian rupee.
  • RBI was established on April 1, 1935, under the Reserve Bank of India Act, 1934.
  • The Government of India entrusts the task of printing and minting currency notes and coins respectively to the RBI and the India Government Mint.
  • Other options like the Government of India, Central Bank of India, and Axis Bank do not have the authority to issue currency notes. The Central Bank of India and Axis Bank are commercial banks dealing with banking services but not with the issuance of currency.
  • The RBI also manages the country's main payment systems and works to promote its economic development. It operates under the Ministry of Finance, Government of India.

Question 269

Which one of the following activities does not come under auxiliaries to trade?

  1. AOption (a)

    Preservation of goods to make them available as and when needed by consumers.

  2. BOption (b)

    Conversion and transformation of raw-materials and semi-finished goods into finished goods. 

  3. COption (c)

    Movement of those goods that are not consumed at the same place where they are produced to the place where they are demanded

  4. DOption (d)

    Banks providing a variety of credit to the public. 

View answer & explanation

Correct answer

Answer: (b)B.

Conversion and transformation of raw-materials and semi-finished goods into finished goods. 

Why this answer is correct

The correct answer is Conversion and transformation of raw-materials and semi-finished goods into finished goods. 

Key Points

  • Auxiliaries to trade refer to various support activities that facilitate trade but do not directly involve the production or the primary sale of goods. These activities include services that make goods available to consumers in a convenient and efficient manner.
  • Preservation of goods ensures that products remain in good condition until they reach the consumer, which is a crucial auxiliary activity to prevent spoilage and loss.
  • Movement of goods from their place of production to where they are demanded is essential for trade, as it allows products to reach markets where they are needed.
  • Banks providing credit play a vital role in facilitating trade by offering financial services that enable transactions and business expansions.

Question 270

An individual who acquires required qualification or skill or training for the particular employment is called

  1. AOption (a)

    Employee

  2. BOption (b)

    Employer

  3. COption (c)

    Professional

  4. DOption (d)

    Entrepreneur 

View answer & explanation

Correct answer

Answer: (c)C.

Professional

Why this answer is correct

The correct answer is Professional.

Key Points

  • The question focuses on identifying the term used for an individual who has acquired the necessary qualifications, skills, or training for a specific job.
  • Professionals often adhere to specific ethical standards and are usually required to maintain their competence through continuous professional development.
  • This ensures they remain effective in their roles and can provide high-quality services or work.

Additional Information

  • An employee is someone hired by an employer to perform specific duties.
  • An employer is a person or organization that hires employees.
  • A professional is an individual who has acquired specialized knowledge, skills, and training in a particular field, often requiring formal qualifications.
  • An entrepreneur is someone who starts and runs their own business, taking on financial risks in the hope of profit.

Question 271

Select the following activities as economic activities by choosing the correct alternatives.

  1. Selling groceries.
  2. Teaching in an institution.
  3. Gift a house o the family.
  4. Donation of goods in an old age home.
  1. AOption (a)

    1 and 3 only

  2. BOption (b)

    2 and 4 only

  3. COption (c)

    1 and 2 only

  4. DOption (d)

    1 and 4 only

View answer & explanation

Correct answer

Answer: (c)C.

1 and 2 only

Why this answer is correct

The correct answer is 1 and 2 only.

Key Points

  • Economic activities are actions that involve the production, distribution, and consumption of goods and services at all levels within a society.
  • They are crucial for the generation of income and wealth.
  • Economic activities are characterized by the creation of value and the involvement in the market economy.
  • They can be further categorized into primary (e.g., agriculture), secondary (e.g., manufacturing), and tertiary (e.g., services) activities based on the sector of the economy they fall into.

Additional Information

  • Selling groceries falls directly into the category of economic activities as it involves the distribution of goods in exchange for money.
  • Teaching in an institution is also an economic activity because it is a service provided in exchange for a salary, contributing to the economy through education.
  • Gifting a house to the family and Donation of goods in an old age home do not qualify as economic activities because they are acts of transfer without a direct exchange for money. These are considered non-economic activities since they are driven by altruism rather than financial gain.

Question 272

The following are the examples of which type of industry. Nursery , fish culture , poultry farms etc.

  1. AOption (a)

    Extractive Industries. 

  2. BOption (b)

    Genetic Industries.

  3. COption (c)

    Construction Industries. 

  4. DOption (d)

    Manufacturing Industries. 

View answer & explanation

Correct answer

Answer: (b)B.

Genetic Industries.

Why this answer is correct

The correct answer is Genetic Industries.

Key Points

  • Genetic Industries are those that involve the breeding and reproduction of plants and animals.
  • They focus on enhancing genetic qualities to improve yield, resistance, and quality.
  • Genetic Industries play a crucial role in food security and the agricultural economy.
  • They employ various techniques, including selective breeding and biotechnology, to achieve their goals.
  • Nurseries engage in the cultivation of plants and seedlings, aiming at their growth and development, which is a core activity of Genetic Industries.
  • Fish culture, also known as aquaculture, involves breeding and raising fish in controlled environments. It is a practice that directly aligns with the objectives of Genetic Industries.
  • Poultry farms are dedicated to the breeding, raising, and production of domestic birds for their eggs, meat, and feathers. This activity is central to the operations of Genetic Industries.

Question 273

As of 2019 which country leads the world in manufacturing of electronic goods. 

  1. AOption (a)

    India

  2. BOption (b)

    U.S.A

  3. COption (c)

    China

  4. DOption (d)

    Russia

View answer & explanation

Correct answer

Answer: (c)C.

China

Why this answer is correct

The correct answer is China.

Key Points

  • China's leadership in electronics manufacturing is crucial for the global electronics market, influencing pricing, availability, and the development of new technologies.
  • This dominance also plays a significant role in the country's economic growth and its standing in the global economy.
  • China has been the world leader in the manufacturing of electronic goods for several years. This leadership is attributed to its massive manufacturing infrastructure, favorable government policies, and the presence of a vast number of factories capable of producing a wide range of electronic products at competitive prices.
  • The country has developed a comprehensive ecosystem for the electronics manufacturing industry, including a robust supply chain and logistics network, which further strengthens its position as a global leader.
  • China's dominance in this sector is also supported by significant investments in research and development, ensuring continuous innovation and improvement in manufacturing technologies and processes.

Question 274

The person who conceives the business idea, brings the organisation into existence and carry on the business activity and top of it bears risk is called. 

  1. AOption (a)

    Professional

  2. BOption (b)

    Entrepreneur

  3. COption (c)

    Employer

  4. DOption (d)

    Manager

View answer & explanation

Correct answer

Answer: (b)B.

Entrepreneur

Why this answer is correct

The correct answer is Entrepreneur.

Key Points

  • The person central to the conception, initiation, and operation of a business is known as an entrepreneur. This role is crucial in the business world as it involves the creation and management of enterprises.
  • Entrepreneurs are innovators who identify a need in the market and create a business to meet that need. They are responsible for the vision behind the business and for transforming that vision into reality.
  • Unlike professionals who specialize in a particular field, or managers who oversee the operations within an organization, entrepreneurs are the driving force behind the business, responsible for its creation and overall direction.
  • Entrepreneurs bear the risks associated with the business. This risk-taking is a defining characteristic, as they invest their resources with the hope of achieving success, understanding that failure is a possibility.

Question 275

Which of the following is not the feature of sole tradership.

  1. AOption (a)

    One man ownership

  2. BOption (b)

    No separate entity of business with its owner. 

  3. COption (c)

    No personal property can be claimed to pay out the debts of the firm. 

  4. DOption (d)

    All profit of the business are enjoyed by the owner. 

View answer & explanation

Correct answer

Answer: (c)C.

No personal property can be claimed to pay out the debts of the firm. 

Why this answer is correct

The correct answer is No personal property can be claimed to pay out the debts of the firm. 

Key Points

  • Sole tradership, also known as sole proprietorship, is a business structure where the business is owned and managed by a single individual. It has distinct features that differentiate it from other business structures.
  • One Man Ownership: This implies that the business is owned by a single individual who is responsible for all decisions and operations.
  • No Separate Entity: In sole tradership, the business and the owner are considered the same legal entity. This means the owner's personal assets can be used to settle business debts.
  • All Profits Enjoyed by the Owner: Since there is only one owner, all profits generated by the business go directly to them.
  • This feature of sole tradership highlights the risk involved, as the owner's personal assets are exposed to business liabilities. However, the simplicity and full control over the business are often seen as advantages of this structure.

Question 276

As per companies act 2013 to form a partnership firm, there should be atleast two persons and maximum ______ 

  1. AOption (a)

    40

  2. BOption (b)

    100

  3. COption (c)

    50

  4. DOption (d)

    unlimited

View answer & explanation

Correct answer

Answer: (c)C.

50

Why this answer is correct

The correct answer is 50.

Key Points

  • A partnership firm is a popular business structure where two or more individuals manage and operate a business in accordance with the terms and objectives set out in the Partnership Deed.
  • Under the Indian Companies Act, 2013, there is a stipulation regarding the minimum and maximum number of partners allowed in a partnership firm.
  • The minimum number required is two persons. This is to ensure that there is more than one individual involved in the decision-making and investment process, providing a basis for partnership.
  • The maximum number of partners allowed in a partnership firm, as per the specific question, is 50. This limit is set to maintain the personal and collaborative nature of the partnership, ensuring it does not become too unwieldy or impersonal, which might be the case with a larger number of partners.
  • It's important to note that the Indian Partnership Act of 1932 primarily governs partnerships in India, but the Companies Act also includes relevant provisions, especially concerning the conversion of partnerships into companies or when they involve large numbers of partners.

Question 277

The voluntary association of persons who are not financially stable come together to overcome the disability arising due to inadequate financial resources are called.

  1. AOption (a)

    Co operative societies

  2. BOption (b)

    Corporate

  3. COption (c)

    Partnership

  4. DOption (d)

    Joint hindu family

View answer & explanation

Correct answer

Answer: (a)A.

Co operative societies

Why this answer is correct

The correct answer is Co operative societies.

Key Points

  • Cooperative societies are organizations formed at the grassroots level by individuals who come together to fulfill their economic and social needs through a jointly-owned and democratically-controlled enterprise.
  • These entities are particularly significant in providing a platform for people who are not financially stable to pool resources and collectively improve their economic conditions.
  • Voluntary Association: Membership in cooperative societies is voluntary, allowing people from various backgrounds to unite for a common purpose.
  • Economic Support: These societies aim to overcome financial instability among members by offering credit facilities, savings opportunities, and other financial services at reasonable rates.
  • Democratic Management: Each member has an equal say in the decision-making process, regardless of the amount of capital they contribute, ensuring fairness and collective responsibility.
  • Cooperative societies are not limited to financial services; they can also provide agricultural support, consumer goods, and housing, depending on the needs of their members. This versatility makes them a vital tool for community development and poverty alleviation.

Question 278

Securities and Exchange Board of India has laid down which of the following?

  1. AOption (a)

    Minimum subscription of a company must be 60 percent of shares issued for subscription before it allots the shares .

  2. BOption (b)

    Minimum subscription of a company must be 90 percent of shares issued for subscription before it allots the shares . 

  3. COption (c)

    Maximum subscription of a company must be 60 percent of shares issued for subscription before it allots the shares . 

  4. DOption (d)

    Maximum subscription of a company must be 90 percent of shares issued for subscription before it allots the shares .

View answer & explanation

Correct answer

Answer: (b)B.

Minimum subscription of a company must be 90 percent of shares issued for subscription before it allots the shares . 

Why this answer is correct

The correct answer is Minimum subscription of a company must be 90 percent of shares issued for subscription before it allots the shares . 

Key Points 

  • The Securities and Exchange Board of India (SEBI) is the regulatory authority for securities and financial markets in India.
  • It establishes guidelines to protect investors and ensure fair and transparent practices in the financial markets.
  • SEBI has set forth various regulations to ensure that companies meet certain criteria before they can proceed with the allotment of shares to the public.
  • One crucial regulation is regarding the minimum subscription a company must receive from the public before it can allot shares. This is to ensure that there is adequate interest and investment in the company to support its operations and growth.
  • According to SEBI's regulation, a company must receive a minimum subscription of 90 percent of the shares issued for subscription. This means that if a company fails to receive subscriptions for 90 percent of the offered shares, it cannot proceed with the allotment of shares.
  • SEBI's regulations cover a wide range of areas, including IPOs, stock exchanges, market manipulation, and insider trading, to ensure the smooth functioning of the securities market in India.

Question 279

Which statement is correct :- 

  1. AOption (a)

    Business includes the exchange of goods and services carried with the intention of return in term of money. 

  2. BOption (b)

    Business includes the exchange of goods and services carried with the intention of charity. 

  3. COption (c)

    Business includes the exchange of goods and services carried with the intention of return in term of money as well as goods.

  4. DOption (d)

    Business includes the exchange of goods and services carried with the intention of domestic fulfillment.

View answer & explanation

Correct answer

Answer: (a)A.

Business includes the exchange of goods and services carried with the intention of return in term of money. 

Why this answer is correct

The correct answer is Business includes the exchange of goods and services carried with the intention of return in term of money. 

Key Points

  • The essence of business lies in the creation of value through the exchange of goods and services. The primary goal is to generate a return, usually in the form of money, which distinguishes business activities from other types of exchanges.
  • Charity, while noble and essential, operates on principles of donation and aid rather than the exchange of goods and services for profit. Therefore, it does not fall under the definition of business.
  • Exchanges purely for domestic fulfillment or personal use do not constitute business activities, as they lack the profit motive and the systematic approach to generating returns.
  • The option suggesting the intention of return in terms of money as well as goods introduces the concept of barter, which, though a form of exchange, is not the defining characteristic of modern business that primarily focuses on monetary returns.

Question 280

Which of the following statements is false? 

  1. AOption (a)

    working capital is an excess of current asset over current liabilities

  2. BOption (b)

    the ideal ratio between current assets and current liabilities is 2:1

  3. COption (c)

    the activity issue and turn over ratio are same

  4. DOption (d)

    Debt equity ratio measures the short term financial position 

View answer & explanation

Correct answer

Answer: (d)D.

Debt equity ratio measures the short term financial position 

Why this answer is correct

The correct answer is Debt equity ratio measures the short term financial position. 

Key Points 

  • Understanding financial ratios is crucial for analyzing a company's financial health. Ratios like the current ratio and quick ratio are better suited for assessing short-term financial positions, highlighting the importance of using the correct ratios for intended financial analyses.
  • Working capital is indeed calculated as the excess of current assets over current liabilities, making Statement 1 true.
  • While the 2:1 ratio between current assets and current liabilities is considered ideal by some, it's more of a guideline than a strict rule, so Statement  2 is generally true.
  • The activity issue and turnover ratio, though related to measuring how efficiently a company utilizes its assets, are the same.
  • Statement four states that the debt-equity ratio measures the short-term financial position, which is incorrect. The debt-equity ratio is a measure of a company's financial leverage and shows the balance between the capital contributed by creditors and that contributed by shareholders. It primarily relates to long-term financial health, not short-term.

Teaching Methodology (20 questions)

Question 281

What does the term ‘commerce’ mean?

  1. AOption (a)

    It is concerned with exchange of goods and services in return of money. 

  2. BOption (b)

    It is merely concerned with distribution of goods and services.

  3. COption (c)

    It is restricted to the exchange of goods only in return of money. 

  4. DOption (d)

    None of the above.

View answer & explanation

Correct answer

Answer: (a)A.

It is concerned with exchange of goods and services in return of money. 

Why this answer is correct

The term "commerce" typically refers to a broad range of activities related to the exchange of goods and services, often involving monetary transactions.

Key Points

  • It involves various activities such as buying, selling, trading, and distributing goods and services in exchange for monetary value.
  • Commerce includes the distribution and transportation of goods from manufacturers to wholesalers, retailers, and ultimately to consumers.
  • Logistics and supply chain management are integral components of the commerce process.

Therefore, 'it is concerned with exchange of goods and services in return of money' is the most accurate definition of commerce.

Question 282

It is the term which includes testing and measurement and also qualitative description of the pupil behavior, what is it called?

  1. AOption (a)

    Measurement 

  2. BOption (b)

    Judgment

  3. COption (c)

    Testing 

  4. DOption (d)

    Evaluation

View answer & explanation

Correct answer

Answer: (d)D.

Evaluation

Why this answer is correct

The term that includes testing and measurement, as well as the qualitative description of pupil behavior, is evaluation.

Key Points

  • Evaluation encompasses the broader process of assessing and analyzing various aspects of a student's performance, including quantitative measurements (testing and measurement) and qualitative descriptions.
  • It involves making judgments based on both quantitative data and qualitative observations to provide a comprehensive understanding of the student's abilities and achievements.

Hint

  • Measurement involves the process of assigning a numerical value to a characteristic or attribute.
  • Judgment refers to forming an opinion or making an assessment based on available information.
  • Testin g is a specific method within the evaluation process.

Hence, the correct answer is evaluation.

Question 283

Which is not one of the various dimensions of commerce education?

  1. AOption (a)

    Liberalization

  2. BOption (b)

    Globalization

  3. COption (c)

    Privatization

  4. DOption (d)

    Industrialization

View answer & explanation

Correct answer

Answer: (d)D.

Industrialization

Why this answer is correct

Commerce education is a broad field encompassing the study of business principles, practices, and concepts with a focus on trade, finance, and economics.

Key Points

  • Liberalization, globalization, and privatization are all directly relevant to commerce education.
  • They represent significant economic trends that impact various aspects of business, trade, and finance.
  • Understanding these trends is crucial for commerce students to navigate the ever-changing global business landscape.

Hint

  • Industrialization, while historically significant for economies and business development, is not typically considered a core dimension of contemporary commerce education.
  • While understanding its historical impact might be included in some courses, it wouldn't be considered a major focus area on its own.

Therefore, industrialization is the correct answer.

Question 284

Which is not the part of commerce education?

  1. AOption (a)

    Applying economic principle in business.

  2. BOption (b)

    Study about the current and future market situations.

  3. COption (c)

    Learn about the political skills. 

  4. DOption (d)

    Develop skills to face the business situations. 

View answer & explanation

Correct answer

Answer: (c)C.

Learn about the political skills. 

Why this answer is correct

Commerce education primarily equips individuals with knowledge and skills directly applicable to navigating the world of business and commerce.

Key Points 

  • Applying economic principles, understanding market trends, and developing business-related skills are crucial aspects of preparing for a career in commerce.
  • It emphasizes real-world application of theoretical knowledge through case studies, simulations, and projects.

Hint

  • Learn about the political skills isn't a core component of commerce education.
  • While awareness of the political landscape and its impact on business is important, dedicated learning of political skills wouldn't typically fall under the purview of commerce education.

Therefore, the correct answer is learn about political skills.

Question 285

Who says this ‘ Teaching is a progressive occupation and teacher must ever be a student ‘?

  1. AOption (a)

    Binning

  2. BOption (b)

    Business school of Delhi 

  3. COption (c)

    Dr. Radhakrishanan

  4. DOption (d)

    None of these

View answer & explanation

Correct answer

Answer: (a)A.

Binning

Why this answer is correct

Teaching goes beyond simply delivering information. It involves creating experiences and environments that help learners actively acquire knowledge, develop critical thinking, and solve problems.

Key Points

  • Teacher occupies an important place in the process of education and a great responsibility therefore devolves upon the teacher.
  • Ac­cording to Binning, ‘Teaching is a progressive occupation and the teacher must ever be a student'.

Hence, the correct answer is Binning.

Question 286

Commerce education deals with the study of –

  1. AOption (a)

    Trade

  2. BOption (b)

    History

  3. COption (c)

    Science

  4. DOption (d)

    Domestic Science

View answer & explanation

Correct answer

Answer: (a)A.

Trade

Why this answer is correct

Trade forms the core foundation of commerce, encompassing the exchange of goods and services between businesses or individuals.

Key Points

  • Commerce education delves into various aspects of trade, such as international trade, marketing, logistics, and finance.
  • Trade can occur within a local or global context and is a fundamental component of economic systems.

Hint

  • History involves the examination and interpretation of events that have shaped societies, cultures, and civilizations over time.
  • Science is a systematic and organized study of the natural world, encompassing various disciplines such as physics, chemistry, biology, and more.
  • Domestic Science, also known as Home Economics, is a field of study that focuses on practical aspects of home management and daily living.

Therefore, Trade is the most appropriate choice.

Question 287

A good commerce teacher is who. 

  1. AOption (a)

    Keep himself updated with current affairs 

  2. BOption (b)

    Supplies the keeping material to the students according to the interest.

  3. COption (c)

    Has rigid behavior to students

  4. DOption (d)

    Guides the students to the right direction.

View answer & explanation

Correct answer

Answer: (a)A.

Keep himself updated with current affairs 

Why this answer is correct

A good commerce teacher is typically someone who keeps himself updated with current affairs.

Key Points

  • This characteristic is essential because commerce subjects often involve real-world applications and are influenced by current economic, business, and market conditions.
  • A teacher who stays informed about current affairs can provide relevant and up-to-date information to students, enhancing their understanding and practical knowledge.
  • Commerce is dynamic, and a teacher who understands current trends and developments can create engaging lessons, connect classroom concepts to real-world scenarios, and prepare students for a changing business landscape.

Hence, the correct answer is 'keep himself updated with current affairs'.

Question 288

A commerce teacher should have . 

  1. AOption (a)

    A bachelor’s degree in science.

  2. BOption (b)

    A master’s degree in commerce.

  3. COption (c)

    A master’s degree in political science. 

  4. DOption (d)

    A bachelor’s degree in economics.

View answer & explanation

Correct answer

Answer: (b)B.

A master’s degree in commerce.

Why this answer is correct

A suitable qualification for a commerce teacher would typically be a master’s degree in commerce.

Key Points

  • Having a master's degree in commerce provides the teacher with in-depth knowledge and expertise in the subject, making them well-equipped to teach commerce-related topics.
  • While other degrees (such as a bachelor's degree in economics) may also be relevant, a master's degree in commerce is more directly aligned with the subject matter and would be a preferred qualification for a commerce teacher.

Hence, the correct answer is 'a master’s degree in commerce'.

Question 289

A class room procedure should not be emphasized on

  1. AOption (a)

    Informal environment of classroom. 

  2. BOption (b)

    Clear aims and objectives of the lesson. 

  3. COption (c)

    Property selected and organized institutional material. 

  4. DOption (d)

    Skill of questioning. 

View answer & explanation

Correct answer

Answer: (a)A.

Informal environment of classroom. 

Why this answer is correct

The classroom procedure should not necessarily be emphasized on informal environment of classroom.

Key Points

  • Clear aims and objectives are crucial for ensuring focused learning and student understanding.
  • Property selected and organized institutional material provides resources and supports learning.
  • Skill of questioning promotes critical thinking and engagement.

Hint

  • Informal environments, while sometimes beneficial, can be detrimental if they lead to lack of focus, discipline, or respect. A balance between informality and structure is often ideal.

Hence, the correct answer is informal environment of classroom.

Question 290

The effective means of teaching commerce in this modern age is. 

  1. AOption (a)

    By different books

  2. BOption (b)

    Preparing notes in the copies

  3. COption (c)

    Audio visual aids

  4. DOption (d)

    Using only one standard book 

View answer & explanation

Correct answer

Answer: (c)C.

Audio visual aids

Why this answer is correct

In the modern age, an effective means of teaching commerce often involves incorporating various resources and methods.

  • The effective means of teaching commerce in this modern age is audio-visual aids.

Key Points

  • Using audio-visual aids, such as multimedia presentations, videos, and other interactive materials, can enhance the learning experience for commerce students.
  • These aids can make complex concepts more accessible, provide real-world examples, and engage students in a dynamic and interactive way.
  • The use of audio-visual aids aligns with contemporary teaching methods that leverage technology and multimedia to improve comprehension and retention.

Hence, the correct answer is audio-visual aids.

Question 291

What is commerce club ? 

  1. AOption (a)

    It is the place where students unite and tend to be open in their issues and learn under the guidance of adult teacher

  2. BOption (b)

    It is the place where students get together for fun under the guidance of a teacher. 

  3. COption (c)

    It is the club where the students gather and study with the books, chalk, duster & blackboard. 

  4. DOption (d)

    It is the club to throw the party. 

View answer & explanation

Correct answer

Answer: (a)A.

It is the place where students unite and tend to be open in their issues and learn under the guidance of adult teacher

Why this answer is correct

A commerce club is typically an organized group within an educational institution, specifically focused on commerce-related subjects.

Key Points

  • It serves as a platform for students who are interested in commerce, business, and related fields to come together, discuss, and engage in activities that enhance their understanding of these subjects.
  • In a commerce club, students with an interest in commerce-related subjects gather to share their thoughts, ideas, and concerns.
  • The club provides a supportive environment where students can openly discuss various aspects of commerce, such as economics, business, finance, and accounting.
  • The presence of an adult teacher or advisor ensures that there is guidance and mentorship available to help students navigate the complexities of commerce subjects.

Hence, the correct answer is 'It is the place where students unite and tend to be open in their issues and learn under the guidance of adult teacher'.

Question 292

___________ is where students practice their theoretical knowledge gained in the classroom by different activities. 

  1. AOption (a)

    Classroom

  2. BOption (b)

    Assembly hall 

  3. COption (c)

    Commerce lab

  4. DOption (d)

    Commerce library

View answer & explanation

Correct answer

Answer: (c)C.

Commerce lab

Why this answer is correct

A commerce lab is a specialized space where students can engage in practical activities to apply the theoretical knowledge gained in the classroom.

Key Points

  • In this context, a commerce lab would provide students with the opportunity to practice and experiment with concepts related to commerce, business, finance, and other relevant subjects.
  • Some Commerce Labs may also cater to specific areas within commerce, such as accounting, finance, marketing, or international trade.

Hint

  • Classroom: A traditional setting where students receive theoretical instruction from teachers.
  • Assembly hall: A large space within an institution used for gatherings, meetings, and events.
  • Commerce library: A dedicated library with resources focused on commerce-related subjects.

Hence, the correct answer is commerce lab.

Question 293

A commerce professional can hold the job as ___________

  1. AOption (a)

    Legal advisor

  2. BOption (b)

    Financial advisor

  3. COption (c)

    Political advisor

  4. DOption (d)

    Mechanical advisor

View answer & explanation

Correct answer

Answer: (b)B.

Financial advisor

Why this answer is correct

Commerce deals with business and trade.

Key Points

  • A commerce professional has studied subjects like accounting, finance, marketing, and economics, giving them a strong foundation in financial matters.
  • Financial advisors offer financial advice and guidance.
  • Their expertise aligns well with the knowledge and skills gained in a commerce education.

Hint

  • Legal advisors, political advisors, and mechanical advisors require specialized knowledge and skills outside the typical commerce curriculum. While a commerce background might provide some helpful context, it wouldn't directly qualify someone for these roles.

Hence, the correct answer is financial advisor.

Question 294

Which of the following low cost teaching aids is/are used in commerce?

  1. AOption (a)

    Commerce library.

  2. BOption (b)

    Commerce Lab

  3. COption (c)

    Graphic aids

  4. DOption (d)

    Commerce club.

View answer & explanation

Correct answer

Answer: (c)C.

Graphic aids

Why this answer is correct

Graphic aids are visual tools and materials that are used to enhance the learning experience by providing visual representations of information.

Key Points

  • In the context of commerce education, graphic aids play a crucial role in illustrating complex concepts, making them more accessible and understandable for students.
  • Using graphic aids in commerce education not only supports visual learners but also enhances overall comprehension.
  • They serve as effective tools for teachers to convey information and for students to grasp intricate topics in commerce more readily.

Hence, the correct answer is graphic aids.

Hint

  • A commerce library is a dedicated collection of books, journals, and resources related to commerce and business.
  • A commerce lab is a specialized space equipped with facilities and resources for practical exercises, experiments, and hands-on learning in the field of commerce.
  • A commerce club is a student organization or group that brings together students interested in commerce-related subjects.

Question 295

In display whose photos and study material are not displayed in commerce lab?

  1. AOption (a)

    Business icons and their ideas

  2. BOption (b)

    Film celebrities

  3. COption (c)

    Government publications 

  4. DOption (d)

    Trade periodicals

View answer & explanation

Correct answer

Answer: (b)B.

Film celebrities

Why this answer is correct

In a commerce lab, the focus is typically on business-related content, educational materials, and resources relevant to commerce and business studies.

Key PointsStudy materials to be displayed in commerce lab:

  • Business icons and their ideas are relevant to commerce education. Displaying information about successful business figures and their innovative ideas can inspire and educate students about real-world business practices.
  • Government publications related to commerce, economics, and business regulations can provide valuable information for students. Displaying such materials in a commerce lab helps students stay updated on economic policies and legal aspects affecting businesses.
  • Trade periodicals, which include industry-specific magazines and journals, are highly relevant to commerce education. They provide insights into current trends, market analyses, and case studies within various business sectors.

Hint

  • Film celebrities, being unrelated to commerce education, would not be part of the display in a commerce lab.

Hence, the correct answer is film celebrities.

Question 296

Who is the father of Management ? 

  1. AOption (a)

    F.W. Taylor

  2. BOption (b)

    Henri Fayol

  3. COption (c)

    Rabinson

  4. DOption (d)

    Pigou

View answer & explanation

Correct answer

Answer: (b)B.

Henri Fayol

Why this answer is correct

Fayol was a French management theorist and is widely recognized as one of the founders of modern management principles.

Key Points

  • Fayol's work laid the foundation for many management concepts and theories that are still relevant today.
  • He developed a comprehensive set of principles known as the "14 Principles of Management."
  • These principles laid the groundwork for modern management practices and continue to influence management thinking.

Hence, the correct answer is Henri Fayol.

Hint

  • F.W. Taylor is often associated with scientific management.
  • Pigou was an economist.
  • Robinson is not commonly referred to as the father of management.

Question 297

Which of the following is not the product of learning ?

  1. AOption (a)

    Physical structure 

  2. BOption (b)

    Knowledge 

  3. COption (c)

    Skill

  4. DOption (d)

    Maturation

View answer & explanation

Correct answer

Answer: (d)D.

Maturation

Why this answer is correct

Learning is a relatively permanent change in behavior that is the result of experience.

Key PointsProducts of learning include:

  • Physical structure: While learning can influence how we use our physical structure (e.g., learning a new sport can improve coordination), it doesn't directly change our body's basic structure.
  • Knowledge: Knowledge is the clearest product of learning. It involves acquiring and understanding information through experience, study, or instruction.
  • Skill: Skills are also directly gained through learning. They involve developing the ability to do something well through practice and experience.

Hint

  • Maturation: This refers to the natural process of biological growth and development.
  • While learning can be influenced by maturation (e.g., a child needs a certain level of development before learning certain skills), maturation itself is not a product of learning. It happens regardless of experience or instruction.

Therefore, maturation stands out as the one that does not require any form of learning or experience to occur.

Question 298

To evaluate the commerce student’s quality, which of the following techniques is used?

  1. AOption (a)

    Checklists

  2. BOption (b)

    Rating scales

  3. COption (c)

    Project Report

  4. DOption (d)

    None of these

View answer & explanation

Correct answer

Answer: (b)B.

Rating scales

Why this answer is correct

Rating scales offer a practical and efficient way to assess diverse qualities beyond just knowledge retention.

Key Points

  • The rating scale is very useful device in assessing quality - especially when quality is difficult to measure objectively in the programmes of extension and development.
  • For commerce students, rating scales might be used to assess their understanding of concepts, problem-solving skills, communication abilities, analytical thinking, and other relevant skills.
  • Educators often create rating scales with specific criteria, such as content knowledge, presentation skills, critical thinking, and adherence to instructions, to comprehensively evaluate the quality of a student's work or performance.

Hence, the correct answer is rating scales.

Hint

  • Checklists are lists of items or criteria that need to be checked or marked off.
  • A project report is a detailed document that presents the findings, methodology, and outcomes of a specific project.

Question 299

_____ is a piece of work involving careful study of a subject over a period of time, done by students under the guidance of teacher. 

  1. AOption (a)

    Lecture 

  2. BOption (b)

    Demonstration

  3. COption (c)

    project Method

  4. DOption (d)

    Lecture – cum demonstration

View answer & explanation

Correct answer

Answer: (c)C.

project Method

Why this answer is correct

The term "Project Method" refers to a teaching and learning approach that involves students undertaking a piece of work that requires careful study of a subject over a period of time.

Key Points

  • In this method, students actively engage in a project, typically under the guidance of a teacher.
  • Students engage in an in-depth and sustained investigation of a topic, actively researching, analyzing, creating, and problem-solving, often over a period of time.
  • The teacher acts as a guide and facilitator, encouraging independent learning and exploration, making it the most fitting choice.

Hint

  • Lecture: A lecture is a one-way communication method where the teacher primarily transmits information to the students, often relying on spoken explanations and presentations.
  • Demonstration: A demonstration involves showing or explaining a process or concept, usually live, rather than focusing on in-depth study.
  • Lecture-cum-demonstration: This combines aspects of lectures and demonstrations, but it still tends to prioritize teacher-led instruction over student-centered exploration and investigation.

Hence, the correct answer is project method.

Question 300

Which method of teaching for a commerce teacher is useful for teaching practical subjects like public relation, communication etc.

  1. AOption (a)

    Project method

  2. BOption (b)

    Lecture method

  3. COption (c)

    Demonstration method

  4. DOption (d)

    None of these

View answer & explanation

Correct answer

Answer: (a)A.

Project method

Why this answer is correct

For teaching practical subjects like public relations and communication in commerce, the Project method is the best choice.

Key Points

  • It promotes active learning, real-world application, and development of essential skills like collaboration, problem-solving, and communication.
  • This approach will effectively prepare your students for practical situations.
  • Projects encourage students to explore unique approaches and solutions, sparking creativity and developing innovative thinking.

Hence, the correct answer is Project Method.

Additional Information

  • The lecture method is a traditional teaching approach where the teacher presents information to the students in a spoken format.
  • The demonstration method involves showing students how to perform a task or carry out a process.

300 questions in the full paper