PU CET PG 2017 Question Paper M.Com. _Honours_

M.Com. (Honours)
1. Which of the following is not included in the definition of management?
(A) Achieving organisational objectives (B) Balancing efficiency against
effectiveness
(C) Working with and through people (D) Obtaining the most from limited
resources

2. The first Income-tax Act was enacted in India in
(A) 1960 (B) 1860
(C) 1760 (D) 1660

3. According to Section 197(1) of the Companies Act, 2013, the maximum managerial
remuneration payable by a public company, to its directors, including managing director
and whole-time director, and its manager in respect of any financial year (FY) shall not
exceed
(A) 10% of the net profits of that company (B) 11% of the net profits of that company
for that FY for that FY
(C) 12% of the net profits of that company (D) 15% of the net profits of that company
for that FY for that FY

4. The Union Budget 2017 was presented on the
(A) first day of February (B) last day of February
(C) first day of March (D) last day of March

5. Which of the following term refers to meeting the needs of the present without
compromising the ability of future generations to meet their own needs?
(A) Green economics (B) Corporate social responsibility
(C) Sustainability (D) Convergence

6. Which stage of the product life cycle is characterized by little competition and slowly
increasing sales?

(A) Introduction (B) Growth
(C) Maturity (D) Decline

7. An application for refund of duty for export of goods exported out of India under

Section 26(2) of the Custom Act, 1962 has to be made before the expiry of how many
months from the date on which the proper officer makes an order for the clearance of
the goods
(A) 3 months (B) 6 months
(C) 9 months (D) 12 months

8. Who gave his name to a bar chart widely used to plan event sequences?
(A) Max Weber (B) Frank Gilberth
(C) Henri Fayol (D) Henry Gantt

9. Which of the following is used for the measurement of distribution of income?
(A) Laffer Curve (B) Engel’s Law
(C) Gini-Lorenz Curve (D) Philip Curve

10. What does SUUTI stands for
(A) Specified Underwriting of the Unit (B) Special Union of the Unit Trust of
Trust of India India
(C) Special Undertaking of the Unit Trust (D) Specified Undertaking of the Unit
of India Trust of India

11. In which stage of the total life cycle of a product is kaizen costing most applicable?
(A) Research and Development Stage (B) Designing Stage
(C) Production Stage (D) Scrapping Stage

12. Dividend received by a shareholder from a company whose entire income is agricultural
income is taxable as
(A) Agricultural income (B) Partly agricultural income
(C) Business income (D) Income from other sources

13. The evaluation method that requires the supervisors to keep a written record of positive
and negative work-related actions of the employees is called
(A) Critical incident method (B) Essay method
(C) Field review method (D) Work standard method

14. Goods and Services Tax (GST), a single system of indirect taxation was introduced in
India as the
(A) Constitution (One Hundred (B) Constitution (One Hundred and First
Amendment) Act, 2015 Amendment) Act, 2016
(C) Constitution (One Hundred and (D) Constitution (One Hundred and
Twenty Second Amendment) Act, 2016 Twenty Third Amendment) Act, 2017

15. This type of risk is avoidable through proper diversification
(A) Portfolio risk (B) Systematic risk
(C) Idiosyncratic risk (D) Total risk

16. One year forward P/E ratio for a company is 10. If the expected growth rate in earnings
for the future is 20%, calculate Price Earnings to Growth (PEG) ratio
(A) 5 (B) 2
(C) 0.5 (D) 0.2

17. Active portfolio managers try to construct a risky portfolio with
(A) a higher Sharpe measure than a (B) a lower Sharpe measure than a passive
passive strategy strategy
(C) the same Sharpe measure as a passive (D) very few securities
strategy

18. Payment received by employee in respect of encashment of earned leave during service
is
(A) taxable as salary (B) taxable as income from other sources
(C) 50% is exempt and balance taxable as (D) fully exempt under section 10
salary

19. In 2016, the Indian government decided to demonetize the 500- and 1,000- rupee notes.
These notes accounted for what percentage of the country’s circulating cash?
(A) 60% (B) 74%
(C) 86% (D) 92%

20. Retained earnings for the 'base year' equals 100 percent. You must be looking at
(A) a common-size balance sheet (B) a common-size income statement
(C) an indexed balance sheet (D) an indexed income statement

21. Holding all other factors constant, the break-even point will decrease by
(A) increasing the fixed costs (B) decreasing the contribution margin
(C) increasing the selling price (D) increasing the variable cost per unit

22. A cluster of complementary goods and services across diverse set of industries is called
as
(A) market place (B) meta market
(C) market space (D) resource market

23. Under the Payment and Settlement Systems Act, 2007, a 'payment system' includes all
but one of the following systems enabling
(A) credit card operations (B) debit card operations
(C) smart card operations (D) operations of clearing corporations

24. Who structured the Fifth Five Year Plan (1974-1979) with its basic objectives being
removal of poverty (Garibi Hatao) and self-dependence?
(A) D.D. Dhar (B) P.C. Mahalanobis
(C) J.P. Narayan (D) M. Visvesvaraya

25. Which of the following would be considered a use of funds?
(A) a decrease in accounts receivable (B) a decrease in cash
(C) an increase in account payable (D) an increase in cash

26. Establishing a high entry price so that a firm can maximize its revenue early is
(A) price penetration (B) price skimming
(C) price fixing (D) price elasticity

27. Service tax is not payable on any service provided to
(A) an undertaking in a free trade zone (B) an undertaking in a software
technological park
(C) an undertaking in a special economic (D) a developer or unit in a special
zone economic zone

28. Which of the following is not one of the categories of research design?

(A) exploratory research (B) descriptive research
(C) causal research (D) desk research
29. Railway Budget in India was separated from general budget in
(A) 1924 (B) 1941
(C) 1947 (D) 1951

30. Marketable securities are primarily
(A) short-term debt instruments (B) short-term equity securities
(C) long-term debt instruments (D) long-term equity securities

31. Microeconomics is concerned with
(A) the economy as a whole (B) the electronics industry
(C) the study of individual economic (D) the interactions within the entire
behaviour economy

32. Expenditure incurred towards Corporate Social Responsibility in accordance with
Section 135 of the Companies Act, 2013 is
(A) Expenditure deductible at 100% (B) Expenditure deductible at 150%
(C) Inadmissible expenditure (D) Expenditure deductible in five annual
instalments

33. Machine down time is an example of which type of quality cost?
(A) Prevention (B) Appraisal
(C) Internal-failure (D) External-failure

34. The 'founding father' of the theory of monopolistic competition is
(A) Joan Robinson (B) Adam Smith
(C) Alfred Marshall (D) Edward Hastings Chamberlin

35. If EOQ = 360 units, order costs are Rs. 5 per order, and carrying costs are Rs. 0.20 per
unit, what is the usage in units?
(A) 129,600 units (B) 2,592 units
(C) 25,920 units (D) 18,720 unit

36. In Nash equilibrium each player chooses the best strategy

(A) assuming other players move first (B) dominated by the other players
(C) given the strategies of other players (D) that is a credible threat

37. Which of the following transaction is not regarded as transfer chargeable to income tax
under the head 'Capital Gains'?
(A) Conversion of asset into stock in trade (B) Maturity of a Zero Coupon Bond
(C) Any distribution of capital asset of a (D) Exchange of land for gold
HUF among its member at the time of
partition

38. Which of the following is considered the first step of the strategic brand management
process?
(A) Building brand mission (B) Building brand vision
(C) Building brand objectives (D) Building brand picture

39. In monetary terminology, what is called the 'monetary base' or 'high powered money'?
(A) the total assets of RBI (B) the total liability of RBI
(C) the total debt of the government (D) the total foreign exchange of RBI

40. If two projects are completely independent (or unrelated), the measure of correlation
between them is
(A) 0 (B) 1
(C) -1 (D) 0.5

41. The most important source of wage differentials are
(A) regional variation (B) unionization
(C) relative danger (D) skills

42. The exchange rate equivalency model excludes which of the following?
(A) Expectations Theory (B) International Fletcher Effect
(C) International Fisher Effect (D) Interest Rate Parity Theory

43. The first asset reconstruction company set up under the Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI)
Act, 2002 was
(A) Asset Reconstruction Company (B) Asset Care and Reconstruction

(India) Ltd. Enterprise Ltd.
(C) ASREC(India) Ltd. (D) Alchemist Asset Reconstruction
Company Ltd.

44. Which one of the following is the sole national re-insurer in India?
(A) General Insurance Corporation of (B) Life Insurance Corporation of India
India
(C) New India Assurance (D) Tata AIG General Insurance

45. To compute the required rate of return for equity in a company using the CAPM, it is
necessary to know all of the following except
(A) the risk-free rate (B) the beta for the firm
(C) the earnings for the next time period (D) the expected market return

46. Nominal GNP measures income
(A) at the present time (B) corrected for tax changes
(C) corrected for changes in interest rates (D) at current prices

47. Financial risk management includes hedging techniques which do not include
(A) foreign exchange swaptions (B) forward interest rate agreements
(FRAs)
(C) foreign exchange fixed forward (D) foreign exchange option forward
contracts contracts

48. The Right to Information (RTI) Rules, 2012 mandate that the RTI application
(excluding any annexure and addresses of the public information officer) should not
contain more than
(A) 250 words (B) 500 words
(C) 750 words (D) 1,000 words

49. The Basel III capital regulation for the banking sector has been implemented in India in
phases from April 1, 2013 and is proposed to be fully implemented as on
(A) March 31, 2018 (B) March 31, 2019
(C) March 31, 2020 (D) March 31, 2021

50. The public sale of common stock in a subsidiary in which the parent usually retains
majority control is called

(A) a pure play (B) a spin-off
(C) a partial sell-off (D) an equity carve-out

51. The Phillips curve shows the trade-off between
(A) the inflation rate and interest rates (B) the inflation rate and the
unemployment rate
(C) interest rates and output (D) output and employment

52. Services differ from manufactured products in four ways, viz., intangibility,
inseparability, perishability, and
(A) homogeneity (B) heterogeneity
(C) intractability (D) invisibility

53. Joining a queue and then leaving after some time before being served is called
(A) Balking (B) Reneging
(C) Rejecting (D) Refusing

54. Mr. X sells his car to Mr. Y. The right of Mr. X to recover the price of the car from Mr.
Y is a
(A) right in rem (B) right in personam
(C) right in rem as well as right in (D) moral right
personam

55. An investor buys an IPO at the offering price and then sells the stock after it starts
trading on the open market. This is known as
(A) flipping (B) after market
(C) safety net (D) fixing

56. A current account deficit means that a country may
(A) reduce its stock of foreign assets (B) increase its stock of foreign assets
(C) increase its savings (D) increase its foreign currency reserves

57. ACORN, a segmentation analysis technique, stands for which of the following?
(A) A Countrywide Official Resources (B) A Classification of Residential
Navigation Neighbourhoods

(C) A Corresponding Official Residential (D) A Classification of Reported Nationals
Notation

58. Which of the following theory states that the employees work hard in the job only when
they are sure of positive outcomes from that job?
(A) Expectancy theory (B) Agency theory
(C) Contingency theory (D) Equity theory

59. Under Section 138 of the Negotiable Instruments Act, 1881, if a cheque is dishonoured
for insufficiency of funds, the penalty can be up to
(A) two years imprisonment or fine up to (B) no imprisonment but fine up to twice
twice the amount of cheque or both the amount of cheque
(C) three years imprisonment or fine up to (D) two years imprisonment or fine up to
twice the amount of cheque or both five times the amount of cheque or both

60. EBIT is usually the same thing as
(A) funds provided by operations (B) earnings before taxes
(C) net income (D) operating profit

61. If goods are exported for less than society's marginal production cost and the marginal
benefit to domestic consumers, it is likely that they benefit from
(A) an import subsidy (B) a quota
(C) comparative advantage (D) an export subsidy

62. Due to small change in customer demands, inventory oscillations become
progressively larger as one moves further up the supply chain. This is known as
(A) Bullwhip effect (B) Net chain analysis
(C) Reverse logistics (D) Reverse supply chain

63. Concurrent audit is a part of
(A) Internal check system (B) Continuous audit
(C) Internal audit system (D) External check system

64. Under the Factories Act, 1948, the definition of 'week' is a period of seven days

beginning at midnight on
(A) Sunday night (B) Monday night
(C) Saturday night (D) Friday night

65. The type of lease that includes a third party, a lender, is called a(n)
(A) sale and leaseback (B) direct leasing arrangement
(C) leveraged lease (D) operating lease

66. Which of the following is not an element of Porter's 5 Forces Model?
(A) The bargaining power of suppliers (B) The potential competition from new
entrants
(C) The firm's existing competition (D) The firm's macroeconomic
environment

67. Events which cannot happen at the same time are called
(A) independent (B) mutually exclusive
(C) a Bayes' relationship (D) non-mutually exclusive

68. How many credit rating agencies are registered with the Securities and Exchange Board
of India (SEBI) as on February 1, 2017?
(A) 3 (B) 5
(C) 7 (D) 10

69. Which of the following is not a concept propounded by Sargent Florence for the
measurement of the degree and incidence of location?
(A) Location Quotient (B) Material Index
(C) Co-efficient of Localisation (D) Coefficient of Linkage

70. The cost of monitoring management is considered to be a(n)
(A) transaction cost (B) agency cost
(C) bankruptcy cost (D) institutional cost

71. The Union Government of India announced the formation of NITI Aayog to replace the
Planning Commission on

(A) May 29, 2014 (B) August 13, 2014
(C) January 1, 2015 (D) February 8, 2015

72. Which ethical approach is guided by what will result in the greatest good for the
greatest number of people?
(A) Moral-Rights approach (B) Virtue approach
(C) Utilitarian approach (D) Justice approach
73. Who said that the job of the entrepreneur is 'creative destruction'?
(A) Peter Drucker (B) Pierre Trudeau
(C) Joseph Schumpeter (D) Brian Mulroney

74. What is the full form of ASBA?
(A) Allotment supported by Blocked (B) Application supported by Blocked
Amount Amount
(C) Application supported by Bank (D) Allotment supported by Bank
Amount Account

75. When the market's required rate of return for a particular bond is much less than its
coupon rate, the bond is selling at
(A) a premium (B) a discount
(C) face value (D) a deep discount

76. The 'Make in India' initiative is based on four pillars, which have been identified to give
boost to entrepreneurship in India. The four pillars are
(A) New Processes, New Infrastructure, (B) New Processes, New Infrastructure,
New Sectors, New Mindset New Sectors, New Initiatives
(C) New Processes, New Investments, (D) New Processes, New Infrastructure,
New Sectors, New Mindset New Businesses, New Initiatives

77. According to the Companies Act, 2013, how many hours before a general meeting can a
member appoint his proxy to attend on his behalf?
(A) 60 hours (B) 48 hours
(C) 36 hours (D) 24 hours

78. In context of global sourcing and logistics, the 'P' in the acronym EPOS stands for
(A) Process (B) Product

(C) Point (D) Position

79. The admission of ‘class action suits’, as envisaged under Section 245 of the Companies
Act 2013, can be taken up by the
(A) National Company Law Tribunal (B) Company Law Board
(C) Board for Industrial and Financial (D) Appellate Authority for Industrial and
Reconstruction Financial Reconstruction

80. The four principal qualitative characteristics of useful financial statements are
(A) Understandability, relevance, (B) Timeliness, relevance, reliability,
reliability, comparability comparability
(C) Understandability, relevance, (D) Understandability, relevance,
accuracy, comparability reliability, simplicity

81. On the recommendation of which committee was the Serious Fraud Investigation
Office (SFIO) set up by the Government of India on August 21, 2002?
(A) Naresh Chandra Committee (B) N.R. Narayana Murthy Committee
(C) Kumar Mangalam Birla Committee (D) Narasimhan Committee

82. Hawthorne studies were a series of early experiments that focused on
(A) Behaviour in the workplace (B) Ethics in the workplace
(C) Group norms (D) Interpersonal dynamics

83. The values, attitudes, and other behaviours already acquired by the new employees
before their entry into the firm is called
(A) anticipatory socialization (B) organisational socialization
(C) tournament-oriented socialization (D) disjunctive socialization

84. The limit on maximum number of directors in a company is
(A) 10 (B) 12
(C) 15 (D) 18

85. The recognition of intangible assets allows their amortization over the period during
which economic benefits are derived. Which principle is put into practice in this
statement?
(A) Going concern principle (B) Matching principle

(C) Prudence principle (D) Accrual principle