Question for Kerala SET Commerce - Quiz / Questions / MCQ in English

Which is the most potent driver of business transformation during Covid-19 pandemic ?

Counter Vailing Duties (CVD) are often imposed on imports to off set the impact of :

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 :

Factor conditions in Michael Porter’s competitive advantage National Include :

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 :

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 :

The basic method of valuing human assets is :

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 ?

The value of the firm in wealth maximization objective is measured by :

For a decline in price, total revenue declines in the demand of the product is :

In Cobb-Douglas production function, Q=AKαLβ increasing returns to scale occurs when :

The extreme case of non-price competition in an Oligopoly is :

Pecking order theory in finance is based on the assertion of :

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 :

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 :

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 :

For a very large sample size the ratio between â€‹ and σ is 8 : 40. Determine the sample size 𝓷 :

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 ?

Which of the following statement is correct ?

For a poisson distribution variable X, P(X=0) = 2P(X=1), its standard deviation would be :

A test that contains a fair sample of the tasks and skills actually needed for the job in question is :

Which among of the following is not a primary determinant of organizational structure ?

An act in a way that results in the greatest good for the greatest number is :

People repeat behaviors that bring them satisfaction and pleasure and stop those that bring them dissatisfaction or pain is known as :

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 ?

Which of the following statement is correct relating to Indian Financial System ?

Which one of the following is not one of the advantages of Derivatives market ?

Which one of the following statements is not true about Indian Money Market ?

Which of the following is not true while determining length of distribution channel ?

Which of the following can be categorized as people processing services ?

SBUs or products that have lost their position of leadership and are in the low growth markets, are known as :

Which of the following is not a valid basis for market segmentation ?

Which one of the following statements is a promissory note ?

A claim for ‘quantum meruit’ cannot succeed :

The first offence for infringement of copyright can be for a maximum of imprisonment for a term of :

Which one of the following conditions does not constitute a valid agency by necessity ?

If assessee is engaged in the business of growing and manufacturing tea in India, the non-agricultural income in that case be :

AMT provisions are applicable on :

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 ?

Which of the following provident fund is approved by the provident fund commissioner ?

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 :

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 :

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 :

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 :

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 :

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 :

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 :

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 :

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 :

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 :

Which of the following statement is correct about Mann-Whitney U-test ?
(a) It is non parametric test.
(b) It requires that samples are independent.
(c) It can be used when populations involved are normally distributed.
(d) It is used to test the null hypothesis that the two populations are involved are identical.
(e) It is always a two tailed test.
​Choose the correct answer from the options given below :

Which of the following are correctabout complementary events ?
(a) Mutually exclusive
(b) Independent
(c) Such that their probabilities add up to 1
(d) Collective exhaustive
​Choose the most appropriate answer from the options given below :

Which of the following statements are correct about Chi Square test ?
(a) The only parameter of a Chi-Square distribution is its number of degrees of freedom.
(b) The null hypothesis in given Chi-Square test is rejected when calculated value of variable exceed its critical value.
(c) The rejection region in a goodness of fit test lies only in the right tail of the distribution.
(d) The Chi-Square test is a parametric test.
(e) At a =.05 and V =1 the critical value of x2 is equal to Z - value at the same level of significance.
​Choose the most appropriate answer from the options given below :

The principles of management have the following distinct features :
(a) Flexibility
(b) Universal application
(c) Principals are relative, not absolute
(d) Based on situation
​Choose the most appropriate answer from the options given below :

Use of interviews as a training needs assessment technique has the following advantages :
(a) Questions can be modified
(b) Easy to analyze
(c) Can explore unanticipated issues that come up
(d) Less time consuming
Choose the most appropriate answer from the options given below :

The advantages of incentive payments are :
(a) Ease in the introduction of new machines
(b) Better utilization of equipment
(c) Reduced absenteeism and turnover
(d) Increased scrap
​Choose the most appropriate answer from the options given below :

Which of the following forms may not result in credit risk ?
(a) Principal and/or interest amount may not be repaid in the case of direct lending.
(b) In case of guarantees or letter of credit, fund may not be forth coming from the constituents upon crystallization of the liability.
(c) Funds/Securities settlements may not be effected, in case of securities trading business.
(d) Provide information for determining adequacy of loan loss provision.
​Choose the correct answer from the options given below :

Which of the following statements are false regarding electronic purse? Indicate the correct code :
(a) Retinal pattern verification
(b) Visual recognition
(c) No risk of bad payment
(d) Method of accepting payments with no cash float to manage and no risk of theft
​Choose the correct answer from the options given below :

Which of the following statements are the defects of Indian Money Market ?
(a) Profitable investment
(b) Dichotomy in Indian Money Market
(c) Financing Industry
(d) Diversity in interest rates
​Choose the correct answer from the given options given below :

Penetration pricing strategy delivers results :
(a) Where price quality association is weak
(b) When the product is perceived as a ‘high technology’ product
(c) When the market is characterized by intensive competition
(d) When the firm uses it as an entry strategy
​Choose the most appropriate answer from the options given below :

Which of the following represents traditional logistics management approach ?
(a) Independent inventory management efforts.
(b) Minimise firm costs.
(c) Amountof information sharing and monitoring limited to current process.
(d) Small breadth of supplier base to increase coordination.
​Choose the correct answer from the options given below :

Which of the following statements are false ? Indicate the correct code.
(a) No company has to file any prescribed declaration before commencement of business.
(b) A company can ratify the contract entered into by the promoters with third parties on behalf of the company before its formation.
(c) The date mentioned in the certificate for commencement of business is taken as the date of birth of a public company.
(d) A private company has to file a “Settlement in lieu of prospectus” with the registrar.
​Choose the correct answer from the options given below :

Which of the following are not the objectives of competition act, 2002
(a) Ensure freedom of trade for other participants in incidental and connected markets.
(b) Provide a reasonable level of reliability and connect operation.
(c) Adhere to generally accepted security procedures.
(d) Protect the interests of consumers.
​Choose the correct answer from the options given below :

Which of the following persons cannot use ITR-4 ?
(a) Who is director of a company
(b) Who has held any unlisted equity shares
(c) Who has any asset located outside India
(d) A firm (other than LLP) if assessee is a Resident
(e) Who has income from other sources
​Choose the most appropriate answer from the given below :

Which of the following losses are not deductible from business income ?
​(a) Loss sustained before the business is commenced.
(b) Losses incurred in the closing down of the business.
(c) Loss incurred due to damage, destruction, etc., of capital assets.
(d) Loss of raw material and finished goods in transit.
(e) Loss of stock-in-trade due to enemy action.
Choose the correct answer from the options given below :

Match List-I with List-II :
            List-I                                                        List-II
                                                             (InternationalTradeTheories)
(a) David Ricardo                          I. Theory of absolute (1817) advantage
(b) Michael Porter                         II.Factor endowment (1990) theory
(c) Adam Smith                             III. Theory of comparative (1776) advantage
(d) Heckscher                               IV. Theory of competitive (1919) – Ohlin advantage (1933)
Choose the correct answer from the options given below :

Match List-I with List-II :

          List – I                                                                          List-II
       (Method)                                                          (Purchase consideration)
(a) Lump-sum                              I. Calculated by adding up the payment method total amount (money value) ofexisting shares, preference shares and cash received the from purchasing                                                                 company for the shareholders of the vendor company.
(b) Net assets                              II. On the bases of ratio in method which the shares or the transferee company are to be exchanged for the shares of transferor company.
(c) Net payment                           III.The amount to be paid by Method the transferee company to transferor company for amalgamation of its business.
(d) Swap Ratio                            IV. Arrived at by adding them Method agreed value of assets taken over and deducting there fromagreed values of liabilities.

Choose the correct answer from the options given below :

Match List-I with List-II :
            List- I                                              List-II
 (Pricing Strategies)                               (Description)
(a) Ramsay pricing                 I. Setting a high price when a product is first introduced and gradually lowering price as it gains scale
(b) Price skimming                 II. Firm charges lower price (than the ongoing price) to gain market entry
(c) Cost plus pricing               III. Price deviations from marginal cost should be inversely proportional to price elasticity of the product
(d) Penetration pricing           IV. It is full cost pricing strategy that also includes mark up for target return, degree of competition, price elasticity and availability of substitutes.
Choose the correct answer from the options given below :

Match List-I with List-II :
           List-I                                                                           List-II
(a) Market risk                                              I. Associated with the Efficiency with which a firm conducts its operation within the environment imposed upon it.
(b) Financial risk                                           II. Arises due to change operating conditions caused by conditions thrust upon the firm which are beyond its control.
(c) External business risk                             III. Variations in price sparked off due to real, social, political and economic events.
(d) Internal business risk                              IV. Associated with the structure of a firm.
Choose the correct answer from the options given below :

Logically sequence the following in the process of entering international markets outlined in the Uppsala model.
(a) Sporadic (Ad hoc) exports
(b) Foreign production and manufacturing
(c) Establishing a foreign sales subsidiary
(d) Domestic operations and production
(e) Exporting via independent representative
​Choose the correct answer from the options given below :

Match List-I with List-II :
             List-I                                                                    List-II
(Personality dimensions)                                        (Individual Traits) 
(a) Extroversion                                               I. Calm, happy and secure
(b) Conscientiousness                                     II. Talkative, Assertive, sociable and outgoing
(c) Emotional stability                                      III.Creative, curious, intellectual,imaginve and artistically sensitive
(d) Openness to                                              IV. Self-disciplined, experience hardworking, organised, dependable and persistent.
​Choose the correct answer from the options given below :

Match List-I with List-II :
            List-I                                  List-II
(a) Insurance Act                       I. 1988
(b) Life Insurance                      II. 1963 Corporation Act
(c) Motor Vehicles                     III.1938 Act
(d) Marine                                 IV. 1956 Insurance Act
​Choose the correct answer from the options given below :

Match List-I with List-II :
             List-I                                                       List-II
           (Books)                                                (Author(s)
(a) Wealth of Nations,                          I. Thomas Malthus 1776
(b) Principles of Political                      II. Karl Marx Economy and Taxation,1817
(c) Principles of                                    III. Adam Smith Population, 1798
(d) Das Capital, 1867                          IV. David Ricardo
Choose the correct answer from the options given below :

Match List-I with List-II :
              List-I                                                                                      List-II
(a) Ordinary damages                                                  I. Never granted by way of compensation for the loss
(b) Special damages                                                    II. They are quite heavy in amount and are awarded by way of punishment only
(c) Exemplary                                                               III. Arise in the ordinary Damages course of events from the breach of contract
(d) Nominal damages                                                   IV. The constitute indirect loss suffered by the aggrieved party on account of contract
Choose the correct answer from the options given below :

Match List-I with List-II :
​             List-I                                                                   List-II
(a) Section 35(2AA)                                     I. Payment made to certain institutions for scientific
(b) Section 35(1) (ii a)                                  II. Payment made to certain institutions for research in social sciences.
(c) Section 35(1) (iii)                                   III. Payment made to a company to be scientific Research.
(d) Section 35(1) (ii)                                    IV. Payment made to Indian Institute of Technology for Scientific Research.
Choose the correct answer from the options given below :

Sequence the following in increasing order of integration of member economies.
(a) Free Trade Area
(b) Economic Union
(c) Custom Union
(d) Preferential Trade Agreements
(e) Common Market
​Choose the correct answer from the options given below :

The liquidator after realizing the assets of the company should distribute the proceeds among below mentioned claimants in the following order :
(a) Legal charges
(b) Liquidators remuneration and cost of expenses of winding up
(c) Workman’s dues and claims of the secured creditors
(d) Preferential creditors and creditors secured by floating charge
(e) Unsecured creditors
​Choose the correct answer from the options given below :

Arrange the following market structures in the increasing order of pricing power in firms.
(a) Monopolistic competition
(b) Perfect competition
(c) Duopoly (d) Monopoly
(e) Oligopoly
​Choose the correct answer from the options given below :

Arrange the following items, i.e., stages of capital budgeting in correct sequence :
(a) Identification of potential investment opportunities.
(b) Assembling of proposed investments.
(c) Decision making.
(d) Implementation and performance review.
(e) Preparation of capital budget and appropriations.
​Choose the correct answer from the options given below :

Arrange the following stages of processing of data in a correct sequence :
(a) Coding
(b) Editing
(c) Tabulation
(d) Classification
(e) Using Percentages
​Choose the correct answer from the options given below :

Arrange the following characteristics of stages of group development in the increasing order :
(a) Members begin to resolve differences and clarify the purpose of the group and the roles of group members.
(b) It includes recognition for participation and achievement.
​(c) Members are highly task-oriented and there is unity in the group.
(d) Conflicts start arising due to the differences of opinion among members.
(e) Members are moderately eager, have positive expectations, anxious about why they are there, and who other members are.
Choose the correct answer from the options given below :

Arrange the following stepsin logical sequence of operation of the registration of portfolio managers :
(a) Prior approval of the SEBI.
(b) Adequate steps for redressal of investors grievances.
(c) Maintenance of the specified capital adequacy requirements.
(d) Payment of fee.
(e) Abide by the regulations under the SEBI Act.
​Choose the correct answer from the options given below :

Arrange the following stages of consumer decision making process in a sequential order with regard to young person Divya :
(a) Looks for a specific colour and showroom delivery as she does not want to wait.
(b) Narrows down to a dark grey car of a specific brand.
(c) Belongs to an executive group and all her colleagues have their own vehicles.
(d) Uses media and other social channels to collect information about different models.
(e) Feels that fuel efficiency should be the most critical factor while making a choice.
​Choose the correct answer from the options given below :

Arrange the following stages of formation of companies in a proper sequence :
(a) Promotion stage
(b) Raising of share capital stage
(c) Incorporation stage
(d) Commencement stage
(e) Selection of name
​Choose the correct answer from the options given below :

Sequence the steps for computing gross annual value of income from house property :
(a) Find out the rent actually received of receivable after excluding unrealised, rent before deducting lose due to vacancy.
(b) Find out the loss because of vacancy.
(c) Find out the reasonable expected rent of the property.
(d) Find out the which one is the higher amount computed in (c) or (a). (e) (d) – (b) is gross annual value
​Choose the correct answer from the options given below :

Given below are two statements :
Statements I : Deferred Tax Liabilities (Net) is the amount of tax on the temporary difference between the accounting income and taxable income. It arises when the accounting income is more than the taxable income.
Statements II : Deferred Tax Liabilities (Net) and Deferred Tax Assets (Net) are only book entries i.e., they are neither actual asset.
​In the light of the above statements, choose thecorrect answer from the options given below :

Given below are two statements :
Statements I : Modified Internal rate of return is based on reinvestment assumption.
Statements II : Value-additivity principle is not applicable in NPV. In the light of the above statements,
Choose the most appropriate answer from the options given below :

Given below are two statements :
Statements I : Delegation is an interpersonal transactions based on behavior analysis.
Statements II : Delegation is an evolutionary and developmental process which needs encouragement and reinforcement.
​In the light of the above statements, choose the most appropriate answer from the options given below :

Given below are two statements :
Statements I : Only low priced products will sell in rural India.
Statements II : Rural consumers are a homogeneous lot.
​In the light of the above statements, choose the most appropriate answer from the options given below :

Given below are two statements : One is labelled as Assertion (A) and the other is labelled as Reason (R).
Assertion (A) : ITR -1 can be used by an individual whose total income does not exceed Rs. 1 Crore.
Reason (R) : ITR -1 cannot be used by an individual who is director in a company.
​In the light of the above statements, choose the most appropriate answer from the options given below :

As per section 80G maximum deduction allowed for any cash donation is upto :

In Leontief production function, L is considered as :

EPRG framework in international Business refers to :

Which one of the following is not a major direct selling company in India ?

Which one of the following statements is ‘TRUE ‘inpartnership ?

In continuous compounding, the time it takes to double the sum grossly follow ‘Rule of 69’. If it is changed to discrete compounding the relevant rules of thumb is__________.

The ‘going concern concept’ is the underlying basis for :

‘Constraint Optimistaion’ is closer to which of the following objectives of business firms ?

In a rising consumer income scenario, the preferred decision choice of business firm for low income elastic products will be__________.

If an estimated Cobb-Douglas production function is Q=10K^0.6L^0.8, what type of returns to scale does this production function indicate ?

Pricing strategy of setting a high price when a product is introduced and gradually lowering it’s price is known as :

Which one of the following is not true for Mass Marketing ?

A manufacturing enterprise monthly consumes 1,350 units of raw material at the cost of Rs. 20 per unit. Determine it’s economic order quantity given the ordering cost of Rs. 2,400 and carrying cost of inventory being 30 percent of the price paid.

The portfolio theory articulates diversification to reduce which of the following risks ?

When foreign currency assets and liabilities match in terms of amount of exposure and timing maturities, it is describe as :

What is the probability that a randomly choosen card from deck of cards will either be a King or a Spade ?

The standard deviation of binomial distribution is :

When sampling is done without replacement then standard error of mean is :

Which of the following is not an example of compressed data ?

The Human Relations Approach rejected the ‘rabble hypothesis’by giving which of the following argument ?

Which of the following is not correct with respect to matrix organization ?

As per Carroll Model, the four levels of Corporate Social Responsibility are :

Who coined the term ‘Collective Bargaining’ ?

The headquarters of the ASEAN is located in which of the following country ?

What is the rate of tax deduction at source from insurance commission in case of ‘Person’ ?

Which of the following is a longterm source of finance ?

What is a ‘Repo Rate’ ?

In Marketing, DSA stands for_________

In which of the following stages of product life cycle a company reduces sales promotion to take advantage of heavy consumer demand ?

In which of the following price adjustment strategies, acompany reduces prices to reward customer responses such as volume purchases, paying early or promoting the product ?