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Latest HP SET Commerce Exam Question (Objective Questions), MCQ in English

Subjects : Commerce

Question Bank HP SET Commerce Exam Paper II - English
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Commerce

Question 1Single Answer
Which is the most potent driver of business transformation during Covid-19 pandemic ?
  1. AEthical consciousness
  2. BScale economies and pricing power
  3. CTechnology adoption and innovation
  4. DSupply chain logistics and government interventions
Question 2Single Answer
Counter Vailing Duties (CVD) are often imposed on imports to off set the impact of :
  1. APredatory pricing
  2. BExport subsidies
  3. CDumping
  4. DLow cost financing
Question 3Single Answer
To prevent opportunistic takeover of domestic firms amid Covid-19 pandemic. Foreign Direct Investment (FDI) from countries that share borders with India is allowed through :
  1. AAutomatic route
  2. BGovernment route
  3. CFIPB route
  4. DDPIIT route
Question 4Single Answer
Factor conditions in Michael Porter’s competitive advantage National Include :
  1. AMarket size
  2. BDemand conditions
  3. CInternationally competitive suppliers
  4. DSkilled labour and scientific knowledge
Question 5Single Answer
In case the purchasing company agrees to act as the agent of the vendor for collection of the book debts, in the books of the purchasing company, the amount of debtors should be credited to :
  1. AVendor’s debtors account
  2. BVendor’s suspense account
  3. CDebtors account
  4. DCreditors account
Question 6Single Answer
When the value of “Investment in subsidiary” in the holding company’s balance sheet in more then the book value of the net assets acquired, the difference represents :
  1. ACapital reserve on consolidation
  2. BGoodwill on consolidation
  3. CMinority interest
  4. DPost acquisition profit
Question 7Single Answer
The basic method of valuing human assets is :
  1. AAdjustment
  2. BAmortization
  3. CCapitalization
  4. DQuasi equity
Question 8Single Answer
X and Y are partners, sharing profits and losses in the ratio of 4 :3. They admit Z into the partnershipand for 1/5th share. X and Y decide to share the future profits in the ratio of 2 :1. What is the sacrificing ratio of X and Y ?
  1. A4 : 3
  2. B13 : 8
  3. C8 :13
  4. D4 :17
Question 9Single Answer
The value of the firm in wealth maximization objective is measured by :
  1. APresent value of all expected future cash flows
  2. BAll expected future cash flows
  3. CPercent value of all expected future profits
  4. DAll expected future profits
Question 10Single Answer
For a decline in price, total revenue declines in the demand of the product is :
  1. AInelastic
  2. BElastic
  3. CUnitary elastic
  4. DZero elastics
Question 11Single Answer
In Cobb-Douglas production function, Q=AKαLβ increasing returns to scale occurs when :
  1. Aα + β > 1
  2. BK + L > 1
  3. Cα + β < 1
  4. DK + L < 1
Question 12Single Answer
The extreme case of non-price competition in an Oligopoly is :
  1. AFormation of cartels
  2. BInterdependent decision-making
  3. CAttaining economies of scale
  4. DFormation of duopoly
Question 13Single Answer
Pecking order theory in finance is based on the assertion of :
  1. AAsymmetric information between managers and investors
  2. BSymmetric information between managers and investors
  3. COutside information
  4. DAsymmetric information among investors only
Question 14Single Answer
If a project cost is Rs. 40,000. Its stream of earning before depreciation and tax during first year through five years is expected to be Rs. 10,000, Rs. 12,000, Rs. 14,000, Rs. 16,000 and Rs. 20,000. Assume a 50% tax rate and depreciation on straight line basis; project’s ARR is :
  1. A14.40%
  2. B72%
  3. C16%
  4. D55.56%
Question 15Single Answer
According to the theory of dividend the firm should follow its investments policy of accepting all positive NPV projects and paying out dividends if and only if, funds are available :
  1. ABird in hand theory
  2. BInvestor rationality theory
  3. C100 percent retention theory
  4. DResidual theory
Question 16Single Answer
In Securitisation when no assets are acquired and the collateral is fixed for the life of the asset,the type of a structure is called as :
  1. ARevolving structure
  2. BAmortized structure
  3. CCollateralized structure
  4. DSelf-liquidating structure
Question 17Single Answer
For a very large sample size the ratio between â€‹ and σ is 8 : 40. Determine the sample size 𝓷 :
  1. A25
  2. B5
  3. C4
  4. D16
Question 18Single Answer
For a given set of paired data, the correlation and regression coefficients have been calculated as being equal to r,bxy and byx respectively. Now, each of values of x series is divided by 5. What effect does it have on each of these co-efficients ?
  1. AThe three co - efficients remain unchanged
  2. BThere is no change in r but by x changes to byx/5and bxy changes to 5bxy
  3. CEach of the co-efficients will be reduced to one fourth of its value
  4. DThere is no change r but byx changes to 5byx and bxy chages to bxy/5
Question 19Single Answer
Which of the following statement is correct ?
  1. ACo-efficients of variance 
  2. BIf value in a series are negative, the standard deviation is also negative
  3. CIf value in a series multiplied by σ, the variance would be multiplied by 36
  4. DStandard deviation is equal to square of variance
Question 20Single Answer
For a poisson distribution variable X, P(X=0) = 2P(X=1), its standard deviation would be :
  1. A​​
  2. B0.5
  3. C​
  4. D2
Question 21Single Answer
A test that contains a fair sample of the tasks and skills actually needed for the job in question is :
  1. AConstruct validity
  2. BContent validity
  3. CTest validity
  4. DCriterion validity
Question 22Single Answer
Which among of the following is not a primary determinant of organizational structure ?
  1. AChain and span
  2. BCapacity and lower needs
  3. CPower and control
  4. DDifferentiation and integration
Question 23Single Answer
An act in a way that results in the greatest good for the greatest number is :
  1. AThe golden rule
  2. BThe utilitarian principle
  3. CThe four way test
  4. DKant’s categorical imperative
Question 24Single Answer
People repeat behaviors that bring them satisfaction and pleasure and stop those that bring them dissatisfaction or pain is known as :
  1. ALaw of exercise
  2. BLaw of redo
  3. CLow of effect
  4. DLow of readiness
Question 25Single Answer
Which one of the following statements is true about under the Base I Accord, BCBS, fixed the minimum requirement of capital fund for banks at ?
  1. A8 percent of the total risk weighted assets
  2. B9 percent of the total risk weighted assets
  3. C10 percent of the total risk weighted assets
  4. D1000 crore
Question 26Single Answer
Which of the following statement is correct relating to Indian Financial System ?
  1. ARBI has direct supervision over depositories and mutual funds
  2. BMonetary control is exercised through cash reserve ratio and statutory liquidity ratio
  3. CPrimary dealers mainly deal in shares, mutual fund units
  4. DThe decrease in statutory liquidity ratio contracts the credit creation
Question 27Single Answer
Which one of the following is not one of the advantages of Derivatives market ?
  1. ALeveraging increases risk
  2. BThey enhance liquidity in the market for underlying assets
  3. CThey represent a form of insurance against risks
  4. DThey reduce price volatility
Question 28Single Answer
Which one of the following statements is not true about Indian Money Market ?
  1. ANon-Banking Finance Companies (NBFCs) are financial institutions that constitute organized component of money market
  2. BMoney market mutual funds are allowed to sell units to corporates and individuals
  3. CA Well-developed money market is essential for a modern economy
  4. DIn the Indian Money Market, the predominant place is enjoyed by government and semi-government securities
Question 29Single Answer
Which of the following is not true while determining length of distribution channel ?
  1. AThe larger the market size, the longer the channel
  2. BIf the average lot size is large, it is better to have a longer channel
  3. CIf the product and the market require a high level of service, it is advisable to keep a shorter channel
  4. DIf customers shop for an assortment of products, it demands for a water channel of distribution
Question 30Single Answer
Which of the following can be categorized as people processing services ?
  1. AHealth care
  2. BLegal services
  3. CEducation
  4. DTransportation
Question 31Single Answer
SBUs or products that have lost their position of leadership and are in the low growth markets, are known as :
  1. AStar
  2. BProblem child
  3. CDog
  4. DCash cow
Question 32Single Answer
Which of the following is not a valid basis for market segmentation ?
  1. ACustomer Based Segmentation
  2. BTechnology Oriented Segmentation
  3. CCompetition Related Segmentation
  4. DProduct Related Segmentation
Question 33Single Answer
Which one of the following statements is a promissory note ?
  1. AI promise to Q Rs. 7,000, 7 days after my marriage
  2. BOn demand, I promise to pay B or bearer Rs. 5,000
  3. CI promise to pay Rs. 5,000 on C’ death provided C leaves with me enough money to pay that sum
  4. DI acknowledge to be indebted to you for Rs. 10,000 to be paid on demand for value received
Question 34Single Answer
A claim for ‘quantum meruit’ cannot succeed :
  1. AWhere is divisible contract is partly performed
  2. BWhen an indivisible contract for a lumpsum is partly performed
  3. CWhen a contract is discovered to be unenforceable due to some technical defect
  4. DIn the case of breach of contract, the aggrieved party can claim reasonable compensation for k what he has done under the contract
Question 35Single Answer
The first offence for infringement of copyright can be for a maximum of imprisonment for a term of :
  1. A6 months and a fine of Rs. 20,000
  2. B3 years and a fine of Rs 50,000
  3. C3 years and a fine of Rs 2,00,000
  4. D1 year and a fine of Rs 3,00,000
Question 36Single Answer
Which one of the following conditions does not constitute a valid agency by necessity ?
  1. AThere should be have been actual and definite commercial necessity for the agent to act promptly
  2. BThe agent should have acted bonafide and for benefit of the principle
  3. CThe agent should have adopted the most reasonable and practicable course under the circumstances
  4. DDestruction of the subject matter of the contract of agency
Question 37Single Answer
If assessee is engaged in the business of growing and manufacturing tea in India, the non-agricultural income in that case be :
  1. A40% the income from such business
  2. B25% the income from such business
  3. C60% the income from such business
  4. D75% the income from such business
Question 38Single Answer
AMT provisions are applicable on :
  1. ACorporate assessee
  2. BNon Corporate assessee
  3. CHUF
  4. DAn Individual
Question 39Single Answer
X, an employee of the private company, gets Rs. 30,000 p.m. as basic salary and entitled to Rs. 1,500 p.m. as entertainment allowance. What are the deductions u ∕ s 16 (ii) for gross salary in respect of entertainment allowance ?
  1. ARs. 5,000
  2. BRs. 18,000
  3. CRs. 72,000
  4. DNil
Question 40Single Answer
Which of the following provident fund is approved by the provident fund commissioner ?
  1. AStatutory provident fund
  2. BRecognized provident fund
  3. CUnrecognised provident fund
  4. DPublic provident fund
Question 41Single Answer
Which of the following institutions are included in the ‘World Bank Group’ ?
(a) International Finance Corporation
(b) International monetary Fund
(c) World Trade Organization
​(d) Multilateral Investment Guarantee Agency
(e) International Development Association
Choose the correct answer from the options given below :
  1. A(a), (b) and (c) only
  2. B(a), (b) and (d) only
  3. C(a), (b), (d) and (e) only
  4. D(a), (d) and (e) only
Question 42Single Answer
Corporate socialresponsibility is the continuing commitment by business to behave ethically and contribute to :
(a) Political awareness, social security and inclusion.
(b) Public health, education and literacy.
(c) Maintaining ecological balances and protecting environment.
(d) Gender diversity, profiteering and market controlling.
(e) Rendering, Sponsoring and donating to social and charitable activities.
​Choose the correct answer from the options given below :
  1. A(a), (b) and (d) only
  2. B(b), (c) and (e) only
  3. C(c), (d) and (e) only
  4. D(a), (b) and (c) only
Question 43Single Answer
Firm characteristics that help managers identify core compentencies include :
(a) Potential access to wide variety of markets
​(b) Significantly contribute to the perceived customer benefits
(c) Value accretive and noncompetitive
(d) Distinctive and difficult for competitors to imitate
Choose the correct answer from the options given below :
  1. A(a), (b) and (c) only
  2. B(b), (c) and (d) only
  3. C(a), (b) and (d) only
  4. D(a), (c) and (d) only
Question 44Single Answer
Which of the following distinction (s) is/are not correct between public issue and rights issue ?
(a) In public issue, applications for shares are invited from the general public and in rights issue, the shares are offered to existing shareholders.
(b) In public issue there is no question of any over-subscription and in rights issue the shares may be under subscribed or over subscribed leading to prorata allotment.
(c) The price of public issue is generally less than the market price and in rights issue, the price is deliberately made less than the market price.
(d) In a pubic issue, the communication of the issue is through prospects or advertisements and in rights issue the communication is between the company and the existing members of the company.
​Choose the correct answer from the options given below :
  1. A(b) only
  2. B(d) only
  3. C(a) and (c) only
  4. D(c) and (d) only
Question 45Single Answer
According to AS-2, Which of the following costs should be included in valuing the inventories of a manufacturing company ?
(a) Freight and insurance
(b) Carriage outwards
(c) Depreciation of factory plant
(d) General administrative overheads
​Choose the correct answer from the options given below :
  1. A(a) and (d) only
  2. B(a), (b) and (d) only
  3. C(b) and (c) only
  4. D(a) and (c) only
Question 46Single Answer
Which of the following rules stands true while preparing schedule of changes in working capital ?
(a) An increase in current assets increases working capital.
(b) An increase in current assets decreases working capital.
(c) An increase in current liabilities decreases working capital.
(d) An increase in current liabilities increases working capital.
​Choose the most appropriate answer from the options given below :
  1. A(a) and (c) only
  2. B(a) and (d) only
  3. C(b) and (d) only
  4. D(a),(b) and (c) only
Question 47Single Answer
Characteristics constituting the core of consumers rationality includes :
(a) Homogeneous expectations
(b) Non-satiation (c) Selfish motive
​(d) Clarity of preferences
(e) Possession of information
Choose the correct answer from the options given below :
  1. A(a), (b) and (c) only
  2. B(b), (c) and (d) only
  3. C(a), (b), (c) and (d) only
  4. D(b), (c), (d) and (e) only
Question 48Single Answer
Why is an indifference curve convex to the origin ?
​(a) Indifference curve slope downward to the right.
(b) Two commodities are imperfect substitutes.
(c) Declining marginal rate of substitution between commodities.
(d) Diminishing marginal utilities.
Choose the correct answer from the options given below :
  1. A(a) and (b) only
  2. B(b) and (c) only
  3. C(c) and (d) only
  4. D(a) and (d) only
Question 49Single Answer
Financial crises takes the form of :
​(a) Currency crisis
(b) Banking crisis
(c) Systematic financial crisis
(d) Foreign debt crisis
Choose the correct answer from the options given below :
  1. A(a), (b), (c) only
  2. B(a), (b), (d) only
  3. C(b), (c), (d) only
  4. D(a), (b), (c), (d) only
Question 50Single Answer
Following are the problems that mar an optimal international diversification :
(a) Unfavourable exchange rate movements
(b) Frictions in international markets
(c) Manipulation of security prices
​(d) Unequal access to information
Choose the most appropriate answer from the options given below :
  1. A(a), (b), (c) only
  2. B(b), (c), (d) only
  3. C(a), (c), (d) only
  4. D(a), (b), (c), (d) only
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