MAHA SET 2018 Question Paper 2 Commerce

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A
Paper-II
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JAN - 50218 (To be filled by the Candidate)
Time Allowed : 1¼ Hours] [Maximum Marks : 100
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2

Commerce
Paper II

II
Time Allowed : 75 Minutes] [Maximum Marks : 100
Note : This paper contains Fifty (50) multiple choice questions. Each question
carrying Two (2) marks. Attempt All questions.
(50) (2)

1. Which of the Government’s policy in 1.

respect of public expenditure and

revenue has a significant impact on

business ?

(A) Monetary policy (A)

(B) Fiscal policy (B)

(C) Trade policy (C)

(D) Foreign exchange policy (D)

2. SEZ stands for .................. . 2. SEZ

(A) Special European Zone (A)

(B) Special Export Zone (B)

(C) Special Environmental Zone (C)

(D) Special Economic Zone (D)

3 [P.T.O.

3. Which one of the following is not a 3.
level of strategies applicable to
multiunit business ? (A)

(A) Corporate strategy (B)

(B) SBU level strategy

(C) Functional level strategy (C)

(D) Divisional level strategy (D)

4. Which one of the following is not a 4.
powerful environmental force the
business is confronted with ?

(A) Consumer movement
(A)
(B) Environmentalism
(B)
(C) Changing competitive
(C)
environment

(D) Increasing population (D)

5. MSMEs contribute about ................. 5.

of India’s GDP.

(A) 8%
(A) 8%
(B) 19%
(B) 19%
(C) 35% (C) 35%
(D) 40% (D) 40%

4

6. As per which accounting convention 6.

‘contingent liability’ is shown by way

of a footnote below the Balance

Sheet ?
(A)
(A) Convention of conservatism

(B)
(B) Convention of full disclosure

(C)
(C) Convention of materiality

(D)
(D) Convention of consistency

7. A company paid ` 50,000 for a 7. ` 50,000

purchase of copyright for five years.

The process of writing off this

cost over a period of five years is

called ................ .
(A)
(A) Depreciation

(B)
(B) Amortization

(C)
(C) Deferred Revenue Expenditure

(D) Depletion (D)

5 [P.T.O.

8. Long term solvency is indicated 8.

by ................... .

(A) Current Ratio (A)

(B) Debt/Equity Ratio (B)

(C) Net Profit Ratio (C)

(D) Turnover Ratio (D)

9. Which of the following is not an
9.

assumption of Break-Even

Analysis ?

(A) Total fixed cost does not change

(B) Total variable cost does not (A)

change
(B)

(C) General price level does not
(C)
change

(D) Product mix does not change (D)

6

10. The difference between standard 10.

cost of standard hours and standard

cost of actual hours is called

as .................. .
(A)
(A) Labour rate variance
(B)
(B) Labour cost variance

(C)
(C) Labour efficiency variance

(D)
(D) Labour mix variance

11. In normal conditions, the demand 11.

curve for a commodity :

(A) slopes upwards from left to

(A)
right

(B) slopes downwards from left to (B)

right
(C)
(C) is horizontal, parallel to X-axis

(D) is vertical, parallel to Y-axis (D)

7 [P.T.O.

12. If the demand for a product responds 12.

more than proportionate to the

change in its price, it is a :

(A) Perfectly inelastic demand (A)

(B) Perfectly elastic demand (B)

(C) Unitary elastic demand (C)

(D) Highly elastic demand (D)

13. Which of the following is not 13.

a feature of monopolistic

competition ?
(A)
(A) Homogenous product

(B)
(B) Large number of sellers

(C) Selling costs (C)

(D) Product differentiation (D)

8

14. The law of variable proportions of 14.

production is applicable in :

(A) Long period (A)

(B) Market period (B)

(C) Short period (C)

(D) Very long period (D)

15. With increasing level of output the 15.

Average Variable Cost (AVC) of a (AVC)
firm :
(A)
(A) Initially falls, then continues to

rise
(B)
(B) Remain unchanged
(C)
(C) Goes on continuously falling

(D) Goes on continuously rising (D)

16. Why is random sampling preferred ? 16.

(A) It is easy to draw (A)

(B) The results will be statistically (B)

valid

(C) It is a popular method (C)

(D) It is free from errors (D)

9 [P.T.O.

17. Which of the following is not an 17.

‘absolute measure of dispersion’ ?

(A) Range (A)

(B) Standard deviation (B)

(C) Mean deviation (C)

(D) Coefficient of variation (D)

18. The empirical formula used to know 18.

mode is ................. .

(A) Mean – 2 Median (A) – 2

(B) 2 Mean – 3 Median (B) 2 – 3

(C) 3 Median – 2 Mean (C) 3 – 2

(D) 3 Median + 2 Mean (D) 3 + 2

19. Which of the following is a 19. (Parameter)

parameter ?

(A) Sample mean (A)

(B) Population mean (B)

(C) Size of sample (C)

(D) Size of population (D)

10

20. Suppose an unbiased coin is tossed. 20.

Event A : Getting head.
A :
Event B : Getting tail.
B :
Which of the following statements

is true ?

(A) The events A and B are
(A) (A) (B)
independent

(B) The events A and B are

mutually exclusive (B) (A) (B)

(C) The events A and B are

independent and mutually
(C) (A) (B)
exclusive

(D) The events A and B are neither
(D) (A) (B)
independent nor mutually

exclusive

21. Tactic is a component of .............. . 21.

(A) Planning
(A)

(B) Organising
(B)

(C) Directing (C)

(D) Co-ordinating (D)

11 [P.T.O.

22. The concept of committee comes 22.

within the scope of ............... .

(A) Directing (A)

(B) Organising (B)

(C) Controlling (C)

(D) Planning (D)

23. Which one of the following is not 23.

Fayol’s principle of management ?

(A) Unity of Command (A)

(B) Unity of Direction (B)

(C) Authority and Responsibility (C)

(D) Management by Exception (D)

24. Find the odd one out : 24.

The components of planning are :

(A) Objective (A)

(B) Procedure (B)

(C) Decentralisation of authority (C)

(D) Budget (D)

12

25. Motivation is a part of ................ . 25.

(A) Communication (A)

(B) Direction (B)

(C) Organization (C)

(D) Plan (D)

26. Which of the following statements 26.

is true ?
(A)

(A) Marketing and selling are inter-

changeable terms
(B)
(B) Marketing and selling are not

inter-changeable terms

(C)
(C) Selling is a broader term which

includes marketing

(D) Advertising includes selling and (D)

marketing

13 [P.T.O.

27. Product-oriented concept believes 27.

that ............... is the key to success.

(A) Offer of better and modified
(A)
products

(B) Fulfilling expectations of

customers (B)

(C) Focussing on drawbacks of
(C)
competing products

(D) Manufacturing products on
(D)
large scale

28. Product Life Cycle (PLC) includes 28.

mainly four stages such as

Introduction, Growth, Maturity

and ................... .
(A)
(A) Prosperity

(B)
(B) Decline

(C) Depression (C)

(D) Inflation (D)

14

29. In the buying decision process, 29.

.................... is the first step.

(A) Information search (A)

(B) Purchase decision (B)

(C) Evaluation of alternatives (C)

(D) Need recognition (D)

30. Relationship marketing refers to 30.

maintaining relations with ..............

to achieve the marketing purpose.

(A) Employees (A)

(B) Dealers (B)

(C) Customers (C)

(D) Suppliers (D)

15 [P.T.O.

31. The initial cash outlay of a project 31.

is ` 2,00,000 and it can generate `2
cash inflow of ` 80,000, ` 60,000,
` 80,000, ` 60,000, ` 1,00,000
` 1,00,000 and ` 40,000 in the year
` 40,000 2013, 2014, 2015
2013, 2014, 2015 and 2016
2016 10%
respectively. Assume 10% rate of

discount. Calculate the net present
1
value of cash inflow. Time value of

money of ` 1 @ 10% discount 10%

factor : DF

Year DF Value
1 .909
1 .909
2 .826
2 .826
3 .751
3 .751
4 .683
4 .683
(A) 1.1240
(A) 1.1240

(B) 1.1235
(B) 1.1235

(C) 1.335 (C) 1.335

(D) 1.634 (D) 1.634

16

32. Which of the following items is not 32.

considered while determining the

working capital ?
(A)
(A) Inventory
(B)
(B) Trade Receivables
(C)
(C) Cash at bank
(D)
(D) Software

33. Which of the following is Dividend 33.

Policy Model ?

(A) Gordon’s model (A)

(B) Schumpeter model (B)

(C) Ricardian model (C)

(D) Miles-Ezzell’s model (D)

34. The concept of cost of capital can also 34.

be explained in terms of ............... .

(A) Direct cost (A)

(B) Fixed cost (B)

(C) Total cost (C)

(D) Opportunity cost (D)

17 [P.T.O.

35. Which is not the example of current 35.

liabilities ?

(A) Advance from customers (A)

(B) Contingent liabilities (B)

(C) Bank overdraft (C)

(D) Provident fund dues (D)

36. Which one of the following is not a 36.

labour legislation ?
(A)
(A) Factories Act
(B)
(B) Competition Act
(C)
(C) Payment of Wages Act

(D)
(D) Industrial Disputes Act

37. Theory ‘Y’ was developed by ............ . 37.

(A) Fiedler (A)

(B) Vroom (B)

(C) McGregor (C)

(D) Herzberg (D)

18

38. Induction is a function of .............. in 38.

Human Resource Management.

(A) Performance Appraisal (A)

(B) Selection (B)

(C) Placement (C)

(D) Recruitment (D)

39. Which of the following does not 39. (wages)

directly affect wage and salary (salary)

structures ?

(A) Ability to pay (A)

(B) Labour supply and demand (B)

(C) Union demands (C)

(D) Regional backwardness (D)

40. Employee welfare does not exactly 40.

depend on :

(A) Conditions of Work
(A)
Environment
(B)
(B) Employees’ Health Services

(C) Employees’ Education (C)

(D) Organisational Culture (D)

19 [P.T.O.

41. The lending rates of commercial 41.

banks are usually :

(A) Not affected by Bank rate (A)

(B) Not related to Bank rate (B)

(C) Lower than Bank rate (C)

(D) Higher than Bank rate (D)

42. Banks which operate through single 42.

office and generally confined to

limited area of town or city are

called :

(A)
(A) Central Banks

(B)
(B) Urban Banks

(C)
(C) Unit Banks

(D) Metro Banks (D)

20

43. When money is lent or borrowed for 43.

one day or on overnight basis it is

known as :
(A)
(A) Term Money
(B)
(B) Call Money
(C)
(C) Notice Money
(D)
(D) Near Money

44. Who was the first Indian Governor 44.

of RBI ?

(A) C. D. Deshmukh (A)

(B) Bengal Rama Rau (B)

(C) R. K. Shanmukham Chetty (C)

(D) K. G. Ambegaonkar (D)

45. Along with Central and State 45.

Governments the paid up capital of (RRBs)

RRB is shared by :

(A) RBI (A)

(B) Sponsoring Bank (B)

(C) NABARD (C)

(D) SBI (D)

21 [P.T.O.

46. GATT which was replaced by WTO 46.
(WTO)
was :

(A) An organisation
(A)
(B) An agreement
(B)
(C) A policy (C)

(D) A conference (D)

47. Which of the following is not the 47.

item of current account of balance (BOP)

of payment ?

(A) Import of services (A)

(B) Interest payments (B)

(C) Export of goods (C)

(D) External borrowings (D)

48. India’s share in global merchandise 48. 2015

trade in 2015 was :

(A) 2.00% (A) 2.00%

(B) 2.50% (B) 2.50%

(C) 3.00% (C) 3.00%

(D) 1.60% (D) 1.60%

22

49. The Asian Development Bank (ADB) 49.

attempts to promote economic

co-operation and growth of the
(ADB)

countries in :
(A)
(A) Asia and Far East
(B)
(B) South East Asia

(C)
(C) South and West Asia

(D)
(D) South and Central Asia

50.
50. The direction of Indian exports has

shifted in recent period towards :

(A) Asia
(A)

(B) North America
(B)

(C) Europe
(C)

(D) Africa (D)

23 [P.T.O.

ROUGH WORK

24