Hawks Eye Academy Kochi UGC NET/JRF MOCK TEST 1 PAPER II COMMERCE Time: 1 hours {Answer ALL Questions}

s} 1. A capital lease where the manufacturer or the dealer (lessor) recognizes profit or loss in addition to interest income is known as (a) Operating lease (b) Finance lease (c) Leveraged lease (d) Sales-type lease 2. Malathi Ltd., has equity capital of Rs.8,40,000, divided into shares of Rs.10 each. Current market price of each equity share is Rs.20. It also has preference share capital of Rs.6,00,000 at 15%. If it had a profit after tax of Rs.9,00,000 during the current year and paid Rs.3,36,000 by way of equity dividends, the price earnings ratio (PE) is (a) 2.28 (b) 2.70 (c) 2.27 (d) 2.07 3. ISDN stands for a. Integrated Services Digital Network b. Integrated Security Data Network c. Information Search and Data Nesting d. Intelligent Serving of Data Need 4. A top-to-bottom relationship among the items in a database is established by a. Hierarchical schema b. Network schema c. Relational schema d. All of the above 5. In classical theory the level of employment is a function of: (A) Price level (B) Money wage rate (C) Quantity of money (D) Real wage rate 6. Supply creates its own demand is a law of: (A) Investment (B) Inflation (C) Consumption (D) Market 7. Credit note is sent by a) Seller b) Customer c) Buyer d) Borrower 8. 1/6 profit on sales means ________ on cost a) 1/6 b) 1/5 c) d) 1/3 9. Stock reserve in relation to closing stock appears a) on the debit side of branch account b) on the credit side of branch account c) on the debit side of profit and loss account d) on the credit side of profit and loss account 10. The principle of Unity of command is contrary to Taylors.. a) Rule of thumb b) Unity of Direction c) Functional foremanship d) None of these 11. The Book Functions of Executive was written by .. a) P.F. Drucker b) Chester Barnard c) Herbert Simon d) None Page 1 Maximum Marks: 100

For Solutions and Detailed Postal Coaching Material, Contact: Hawks Eye Academy, Kochi, Kerala Phone:04844042464

Hawks Eye Academy Kochi 12. Koontz and ODonnel are the advocates of approach to management a) System approach b) Empirical c) Contingency d) Operational 13. .developed the concept of Management by Objectives a) A.H.Maslow b) Herbert Simon c) Herzberg d) Peter F. Drucker 14. Market where there is no physical delivery of goods a) Future market b) Spot market c) Perfect market d) None of these 15. Risk bearing is a function of a) Research b) Exchange c) Physical supply d) Facilitating 16. Shiny hair in case of a shampoo is a .utility a) Primary b) Evolved c) Generic d) None of these 17. Which of the following are the elements of product positioning a) The Product b) The Company c) The Consumer d) All of these 18. A family of parametric distribution in which mean = variance is a) Binomial distribution b) Gamma distribution c) Normal distribution d) Poisson distribution 19. An approximate relation between QD and SD of normal distribution is a) 5QD = 4SD c) 2QD = 3SD b) 4QD = 5SD d) 3QD = 2SD 20. Who is considered to be the Father of Set Theory? (a) Bertand Russel (b) George Cantor (c) Srinivasa Ramanujan (d) George Boole 21. The smallest unit in the computer which represents information is a) Byte b) bit c) character d) digit 22. Kumar Ltd., furnished the following information: 9% Preference share capital Rs. 6,00,000 12% Debentures Rs. 4,00,000 Equity Shareholders fund Rs. 25,00,000 The capital gearing ratio of Kumar Ltd., was (a) 0.60 (b) 0.40 (c) 1.67 (d) 1.44 23. If the current assets and current liabilities are Rs.2,000 lakh and Rs.1,200 lakh respectively, how much amount can be borrowed towards working capital without reducing the current ratio below 1.5? (a) Rs.140 lakh (b) Rs.240 lakh (c) Rs.380 lakh (d) Rs.400 lakh 24. What was the reserve currency under Bretton Woods system? (a) Sterling (b) Dollar (c) Special Drawing Rights (SDRs) (d) Gold Page 2

For Solutions and Detailed Postal Coaching Material, Contact: Hawks Eye Academy, Kochi, Kerala Phone:04844042464

Hawks Eye Academy Kochi 25. Which of the following would you consider the best indicator of an undervalued firm? (a) A firm with a P/E ratio lower than the industry P/E (b) A firm with a P/E ratio lower than the average P/E ratio for the firms peer group (c) A firm with a P/E ratio lower than its peer group and a lower expected growth rate (d) A firm with a lower P/E ratio than its peer group, a higher expected growth rate and lower risk 26. Participative leadership is also referred as . leadership a) Democratic b) Consultative c) Ideographic d) All of these 27. .term includes employees, customers, suppliers and the wider community a) Stock holder b) Stake holder c) Both of these d) None of these 28. The strategy of using as many out lets as possible is called (a) Intensive distribution (b) Cohesive distribution (c) Wide distribution (d) All of these 29. If goods directly move from producer to consumer, it is known as (a) One level channel (b) Zero level channel (c) Two level channel (d) None of these 30. The Concept of USP was introduced by (a) Rosser Reeves (b) Theodre Levitt (c) NH Borden (d) None of them 31. Blue revolution refers to a) Aquaculture b) milk c) poultry d) none of these 32. .was first used by Eugene J Kelly. a) Demarketing b) meta marketing c) mass marketing d) mega marketing 33. is also known as buzz marketing. a) Word of mouth marketing b) viral marketing c) guerilla marketing d) morph marketing 34. The term . Marketing was coined by Steven Jurvetson in 1997. a) Word of mouth b) viral c) guerilla d) morph 35. When the elasticity of demand ep is greater than 1 the demand for good is a. inelastic b. unitary elastic c. relatively elastic d. elastic 36. Arc price elasticity is calculated over a. a range of prices b. a price at a point c. a period of time d. none of the above 37. MC curve cuts AVC and AC curves at the _____ point a. minimum b. maximum c. both (a) and (b) d. none of these 38. Minimum cost of producing each output level when the plant size can be freely varied is called a. short run total cost b. long run total cost c. total cost d. none of these

For Solutions and Detailed Postal Coaching Material, Contact: Hawks Eye Academy, Kochi, Kerala Phone:04844042464

Page 3

Hawks Eye Academy Kochi 39. The ratio of the proportionate change in average cost to the proportionate change in output is called elasticity of a. marginal cost b. total cost c. average cost d. none 40. Indifference curves are ____ to the origin a. concave b. increasing c. convex d. None of these 41. The theory of investment multiplier was developed by a. R.F. Khan b. J.M. Keynes c. Lagrange d. None of these 42. Which of the following is not a function of financial market? (a) Help the economy to reduce flotation cost (b) do not provide liquidity to financial asset (c) assure long term availability of funds (d) provide a forum for price fixation. 43. The most important defect of single entry? (a) No trial balance can be prepared (b) no trading and P/L a/c (c) difficult to ascertain the value of business (d) not a scientific method of accounting. 44. Oldest method of project evaluation: (a) NPV (b) IRR (c) ARR (d) PBP

45. Amalgamation in common parlance refers to a/an: (a) Merger (b) Absorption (c) Reorganization (d) Consolidation 46. Graphic representation of present decision, future decision and their consequences: (a) Sensitivity technique (b) decision tree (c) probability technique (d) decision root 47. It is proved that repetitive advertisement influence consumers: (a) Buying behaviour (b) satisfaction (c) protection (d) confidence 48. 100 - N/P ratio= (a) Operating N/P ratio (b) Operating ratio (c) G/P ratio (d) Proprietary ratio 49. Through ________ pricing firm bases largely on those of its competitors: (a) Sealed bid pricing (b) Going rate (c) Cost plus (d) High low 50. The ratio which is obtained by dividing the present value of future cash inflows by the present value of cash outflows is called: (A) Net Present value (B) Internal rate of return (C) Profitability index (D) Average rate of return

For Solutions and Detailed Postal Coaching Material, Contact: Hawks Eye Academy, Kochi, Kerala Phone:04844042464

Page 4