Signature and Name of Invigilator

Answer Sheet No. : ......................................................

(To be filled by the Candidate)

1. (Signature)

Roll No.

(Name)

(In figures as per admission card)

Roll No.

2. (Signature)

(In words)

(Name)

Test Booklet No.

D0 8 0 7

PAPERII

COMMERCE

Time : 1 hours]

Number of Pages in this Booklet : 16

[Maximum Marks : 100

Number of Questions in this Booklet : 50

Instructions for the Candidates

1.

Write your roll number in the space provided on the top of this
page.

1. U DU U S U UU U

2.

This paper consists of fifty multiple-choice type of questions.

3. U U U, -S U U U

3.

At the commencement of examination, the question booklet

will be given to you. In the first 5 minutes, you are requested
to open the booklet and compulsorily examine it as below :
(i)

4.

2. -

-S
U

To have access to the Question Booklet, tear off the paper

seal on the edge of this cover page. Do not accept a
booklet without sticker-seal and do not accept an open
booklet.

-S U U
U U SUU-U S
SU U

(ii)

U DU U U U -S DU
U U U U U U S
DU / U UU
U U S SU U
UUU S U U -S
U U
-S U
UQ

(ii)

Tally the number of pages and number of questions in

the booklet with the information printed on the cover
page. Faulty booklets due to pages/questions missing
or duplicate or not in serial order or any other
discrepancy should be got replaced immediately by a
correct booklet from the invigilator within the period of
5 minutes. Afterwards, neither the question booklet
will be replaced nor any extra time will be given.

(iii)

After this verification is over, the Serial No. of the booklet

should be entered in the Answer-sheets and the Serial
No. of Answer Sheet should be entered on this Booklet.

(iii) -S R U- U

Each item has four alternative responses marked (A), (B), (C)
and (D). You have to darken the oval as indicated below on the
correct response against each item.

4. U U (A), (B), (C) (D)

Example :

U UU U- R -S U U

U UU U

Your responses to the items are to be indicated in the Answer

Sheet given inside the Paper I booklet only. If you mark at
any place other than in the ovals in the Answer Sheet, it will
not be evaluated.

6.

Read instructions given inside carefully.

7.

Rough Work is to be done in the end of this booklet.

8.

If you write your name or put any mark on any part of the test
booklet, except for the space allotted for the relevant entries,
which may disclose your identity, you will render yourself
liable to disqualification.

5. U U I U U- U

U U U
S U U U , U

6. U U
7. (Rough Work) S DU U U
8. U-S U

, U U U
U
9. U # U U-S U UU

U U # U U
U

You have to return the test question booklet to the invigilators

at the end of the examination compulsorily and must not carry
it with you outside the Examination Hall.

/ U ZU S U
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12. U U
10.

10. Use only Blue/Black Ball point pen.

11.

11. Use of any calculator or log table etc., is prohibited.

12. There is NO negative marking.

D0807

(C) U

where (C) is the correct response.

5.

9.

(i)

P.T.O.

COMMERCE
PAPERII
Note :

1.

2.

3.

4.

5.

6.

7.

This paper contains fifty (50) objective-type questions, each question carrying
two (2) marks. Attempt all of them.

The objective of the 11th Five-year Plan approach paper is to achieve :

(A)

Inclusive growth

(B)

Inclusive finance

(C)

Growth with equity

(D)

Social justice

The sector owned by State or Central Government is called :

(A)

Private sector

(B)

Public sector

(C)

Joint sector

(D)

Co-operative sector

Balanced growth means :

(A)

The state of an economy in which there is a constant relationship between the

components of aggregate national income.

(B)

The effect upon the national income of equal changes in Government expenditure
and revenue.

(C)

A situation in which the Governments planned expenditure equals its expected

income.

(D)

None of the above

The country that is not a developing country but has not yet achieved the status of the
advanced country is :
(A)

Malaysia

(B)

South Korea

(C)

Singapore

(D)

None of these

The draft Five-year Plan in India is approved by :

(A)

National Development Council

(B)

Planning Commission

(C)

Cabinet Committee

(D)

President of India

Which accounting principle differentiates between owners and management ?

(A)

Going Concern

(B)

Dual Aspect

(C)

Separate Entity

(D)

Conservatism

Reducing the capital of a company is called :

(A)

Internal Reconstruction

(B)

External Reconstruction

(C)

Consolidation

(D)

None of these

D0807


II
U

(50)

SD

(2)

1.

11

(A)

(A)

(D)

(A)
(C)

(D)

cU

UU

S,

US

(B)

cU

(D)

UcU

UcU

UU

(C)

(A)
(C)
D0807

(B)

(D)

UcU

mU

(D)

(D)

(B)

(B)

cU

(A)

7.

(B)

(C)

6.

(A)

5.

UU

(C)

(approach)

cU

(B)

(A)

4.

U/

(C)
3.

cU-

(C)
2.

UcU

(B)
(D)
3

P.T.O.

8.

P/V ratio shows :

(A) Profit and Volume
(C) Safety Margin

(B)
(D)

Profit Earning Capability

None of the above

9.

The
(A)
(B)
(C)
(D)

10.

Match the items of List - I with the items in

List - I
(a) Cash Equivalents
(i)
(b) Average Collection Period
(ii)
(c) Zero-Base Budgeting
(iii)
(d) Responsibility Centre
(iv)
Codes :
(a) (b) (c) (d)
(A) (iii) (i)
(ii) (iv)
(B) (iv) (ii) (iii) (i)
(C) (i)
(ii) (iii) (iv)
(D) (ii) (i)
(iii) (iv)

11.

In the short period, monopolist firms equilibrium is at :

(A) Break-even point
(B) AR > AC
(C) AR < AC
(D) All of these

12.

Price-discrimination is profitable and possible if the two markets have :

(A) Equal Elasticity of Demand
(B) Different Elasticity of Demand
(C) Inelastic Demand
(D) Highly Elastic Demand

13.

Laws of increasing and constant returns are temporary phases of :

(A) Law of Variable Proportion
(B) Law of Diminishing Return
(C) Law of Proportionality
(D) Law of Diminishing Utility

14.

A firm producing a large number of products will follow the pricing strategy known
as :
(A) Cost-plus pricing
(B) Differential pricing
(C) Product-line pricing
(D) Price leadership

D0807

meaning of cash as per AS - 3 (revised) is :

Cash in hand
Cash at Bank
Cash in hand and demand deposits in banks
None of the above

List -II :
List - II
Efficiency of managing an asset
Controlling Government Expenditure
Liquid Securities
Residual Income

8.

(A)

(C)
9.

.-x

(C)

(D)

(c)

(d)

(A)
(B)
(C)
(D)

(A)

(A)

(C)
13.

(C)

(A)
(C)
D0807

UU

UU

(B)

SU

(B)

(D)

-U

-U

(B)
(D)
5

(B)

(D)

cU

(D)

(d)
(iv)
(i)
(iv)
(iv)

(iv)

(iii)

<

(ii)

(i)

(c)
(ii)
(iii)
(iii)
(iii)

- II

(A)

14.

(C)
12.

(b)
(i)
(ii)
(ii)
(i)

(a)
(iii)
(iv)
(i)
(ii)

(B)

11.

(b)

(D)

- I -II
- I
U

(a)

(U)

(B)

(A)

10.

(P/V)

>

-U

P.T.O.

15.

16.

17.

18.

19.

Cartels under oligopoly do not survive for long because of :

(A)

Inter-firm rivalry

(B)

Low profits

(C)

High cost of marketing

(D)

Heavy losses

F-test is a :
(A)

Probability test

(B)

Variance test

(C)

Factor analysis

(D)

None of the above

Regression analysis is a measure of :

(A)

Degree and direction of relationship

(B)

Degree of association

(C)

Cause and effect relationship

(D)

None of the above

Schedules help us in collecting :

(A)

Secondary Data

(B)

Qualitative Data

(C)

Primary Data

(D)

None of the above

Match the items from List - I with the items in List -II :
List - I

List - II

(a)

Random sampling

(i)

Structured

(b)

Hypothesis testing

(ii)

Parametric test

(c)

Questionnaire

(iii)

Probability sampling

(d)

t - test

(iv)

b - error

Codes :

20.

21.

(a)

(b)

(c)

(d)

(A)

(iv)

(iii)

(i)

(ii)

(B)

(iii)

(iv)

(ii)

(i)

(C)

(iii)

(i)

(iv)

(ii)

(D)

(iii)

(iv)

(i)

(ii)

The process of arranging records within a file is called :

(A)

Ordering

(B)

Arranging

(C)

Sequencing

(D)

Sorting

Who is the father of Scientific Management ?

(A)

Peter F. Drucker

(B)

Henry Fayol

(C)

F.W. Taylor

(D)

Charles Babbage

D0807

15.

(A)
(C)
16.

(C)

(B)
(C)
(D)
18.

(C)
19.

(c)
(d)

(A)
(B)
(C)
(D)

(C)
21.

(C)
D0807

(B)

(B)

(D)

- II

UU

.U.

(Sequencing)

UU

UU

U-h

(b - error)

(d)
(ii)
(i)
(ii)
(ii)

(Ordering)

(iv)

(i)
(iii)

(c)
(i)
(ii)
(iv)
(i)

(ii)

(b)
(iii)
(iv)
(i)
(iv)

- II

U-U

RS

(a)
(iv)
(iii)
(iii)
(iii)

(Random)

(D)

(Variance)

(D)

(A)

-U

(A)

(B)

(UU)

(b)

20.

- I
- I
(a)

(A)

(A)

-USU

(A)

17.

(B)
(D)

(Arranging)

(Sorting)

UU

(B)
(D)
7

P.T.O.

22.

23.

24.

25.

26.

27.

28.

29.

30.

What are K.R. As. ?

(A)

Key Result Areas

(B)

Key Recruitment Agencies

(C)

Key Real Assets

(D)

Key Resourceful Areas

The modern organization structure usually recommended is :

(A)

Tall

(B)

Flat

(C)

Floating

(D)

Circular

Which of the following relates to interpersonal communication ?

(A)

Johari Window

(B)

Formal

(C)

Body language

(D)

All of the above

Who is an independent director ?

(A)

Financial Institution

(B)

Shareholder of the Company

(C)

Nominee of Outside Agency

(D)

None of the above

Who propounded Mega-marketing ?

(A)

Mc Aurthy

(B)

Philip Kotler

(C)

Sheth

(D)

Peter F. Drucker

On-line marketing is associated with :

(A)

Segmentation

(B)

Product Life Cycle

(C)

Distribution

(D)

Packing

Relationship marketing relates to :

(A)

One-time purchase

(B)

Two-time purchase

(C)

Repeat purchase

(D)

Continuous purchase

Modern marketing concept emphasizes on :

(A)

Sales maximisation

(B)

Customer satisfaction

(C)

Profit maximisation

(D)

Wealth maximisation

Penetration price is :
(A)

Charging high price

(B)

Charging low price

(C)

Charging competitive price

(D)

None of the above

D0807

22.

K. R. As.
(A)

(B)

(A)

25.

UU

(A)
(C)
26.

(A)
(C)
27.

(A)
(C)
28.

(C)

(C)
30.

(C)
D0807

(D)

(D)

(B)

(D)

(B)
(D)

(B)
(D)

(B)

(Flat)

(Circular)

(D)

UU

UU

UUU

UU

(B)

(D)

UU

(B)

(A)

(B)

(A)

(Key Resourceful Areas)

(A)

29.

(C)

(Key Real Assets)

(Floating)

(Key Recruitment Agencies)

(Tall)

(C)

(Key Result Areas)

(A)

24.

(D)

(C)

23.

(B)
(D)
9

P.T.O.

31.

32.

33.

Right shares enjoy preferential rights as regards :

(A)

Payment of retained earnings

(B)

Payment of dividend

(C)

Repayment of capital in the event of winding up of the company

(D)

None of the above

Non-performing Advance means :

(A)

Non-functional assets

(B)

Obsolete assets

(C)

Assets transferred to company liquidator

(D)

Loans becoming overdue beyond 90 days

Match the items of List - I with the items in List -II :

List - I

List - II

(a)

Capital gearing ratio

(i)

Profitability

(b)

Fixed assets turnover

(ii)

Short-term solvency

(c)

Return on equity

(iii)

Activity

(d)

Acid test

(iv)

Long-term solvency

Codes :

34.

35.

36.

(a)

(b)

(c)

(d)

(A)

(iv)

(iii)

(i)

(ii)

(B)

(iv)

(iii)

(ii)

(i)

(C)

(iii)

(iv)

(i)

(ii)

(D)

(iv)

(i)

(iii)

(ii)

Capital structure designing has nothing to do with :

(A)

Profitability

(B)

Solvency

(C)

Flexibility

(D)

Transferability

Which of the following is the source of short-term finance ?

(A)

Trade Credit

(B)

Bank Credit

(C)

Short-term Borrowings

(D)

All of the above

What is the operative function of Human Resource Management ?

(A)

Controlling

(B)

Organizing

(C)

Procurement

(D)

None of the above

D0807

10

31.

(A)

(C)

(A)
(B)
(C)

90

(c)
(d)

34.

(A)
(C)
35.

SU

(i)

(ii)

R-

(C)

(C)
D0807

(UU)

(D)

(B)

(D)

SU

(B)

(D)

(B)

(d)
(ii)
(i)
(ii)
(ii)

(iii)

(A)

(c)
(i)
(ii)
(i)
(iii)

(iv)

(b)
(iii)
(iii)
(iv)
(i)

USU

(A)

36.

U
(A)
(B)
(C)
(D)

- II

(a)
(iv)
(iv)
(iii)
(iv)

(b)

- I -II
- I
(a)

(D)

cR

(D)

33.

(B)

32.

11

P.T.O.

37.

38.

39.

40.

41.

42.

43.

44.

Selection means :
(A)

Elimination

(B)

Testing

(C)

Recruitment

(D)

None of the above

What is the method used to determine wage differentials ?

(A)

Merit rating

(B)

Job design

(C)

Job evaluation

(D)

None of the above

Social security benefit include :

(A)

Annual bonus

(B)

Non-financial incentives

(C)

Old age pension

(D)

None of the above

Performance appraisal relates to :

(A)

360 degrees appraisal

(B)

Open-door method

(C)

Autocratic method

(D)

All of the above

In 2005 - 06, which of the following banks earned the highest return on assets ?
(A)

Private Sector Banks

(B)

Foreign Banks

(C)

Public Sector Banks

(D)

Scheduled Commercial Banks

Which of the following provides financial aid to the developing countries of Asia :
(A)

Association of South East Asian Nations

(B)

International Development Association

(C)

Asian Development Bank

(D)

None of the above

The merger of __________ and __________ was the first M and A activity after
liberalization.
(A)

Times Bank and HDFC Bank

(B)

New Bank of India and Punjab National Bank

(C)

ICICI and ICICI Bank

(D)

GTB and Oriental Bank of Commerce

The first Development Bank IFCI was established in :

(A)

45.

1948

(B)

1947

(C)

1949

(D)

1950

(D)

15

The number of approved stock exchanges in India is :

(A)

D0807

24

(B)

21

(C)
12

18

37.

(A)

UU

360

(A)
(B)
(C)
(D)
43.

(A)
(B)
(C)
(D)
44.

(A)
45.

(A)
D0807

UC

-U

UU

__________

1947

(B)

(B)

SU

(D)

__________

U-

(B)

(B)

24

1948

(D)

(D)

(B)

UU

UC

UU

(D)

2005 - 06

(C)

(A)

(B)

(C)

42.

(A)

(C)

UU

(A)

41.

(B)
(D)

(C)

40.

(A)

39.

(C)
38.

(C)

1949

(D)

1950

(C)

18

(D)

15

21
13

P.T.O.

46.

Happiness Index or Happy Planet Index has been evolved jointly by the New
Economic Foundation and Friends of Earth. Both are located in :
(A)

47.

48.

49.

50.

U.K.

(B)

U.S.A.

(C)

Australia

(D)

Europe

The amount of gold, reserve currencies and special drawing rights available for the
finance of international trade is known as _________.
(A)

International Liquidity

(B)

Special Drawing Rights

(C)

International Monetary Fund

(D)

None of the above

The Double Taxation Avoidance Convention (DTAC) pact was signed between :
(A)

India and China

(B)

India, Serbia and Montenegro

(C)

Australia and China

(D)

None of the above

International Trade Theory was the contribution of :

(A)

Bertic Ohlin

(B)

Arthur Okun

(C)

Adam Smith

(D)

None of the above

Which of the following is not matched against its name ?

(A)

ASEAN :

Economic co-operation amongst all Asian Countries

(B)

IMF :

To remove unfavourable balance of payment and to provide financial

assistance

(C)

WTO :

Does not allow quantitative restrictions on trade

(D)

SAARC :

Encourages trade between South Asian Countries

-oOo-

D0807

14

46.

mU

(A)
47.

(A)
(C)

(C)
49.

(C)
50.

(A)

ASEAN :

(B)

IMF :

(C)

WTO :

(D)

SAARC :

(DTAC)

(D)

(.U.U)

SU

(D)

UQ

(B)

U,

(D)

(B)

SU

(D)

(B)

(C)

...

SU

UUC

(B)

UUC

(A)

UUC

(A)

..

UUC

48.

-oOo-

D0807

15

P.T.O.

Space For Rough Work

D0807

16