Delhi University Entrance Test (DUET) 2020 Previous Year Question Paper With Answer Key
DU MCom
Topic: MCOM S2
1) Under conditions of perfect competition if a particular firm is facing a price which is greater than average variable cost
but less than average cost, then
[Question ID = 8092]
1. The firm is recovering the entire variable costs but not recovering some part of the fixed costs and is facing losses. [Option ID = 32362]
2. The firm is recovering the entire fixed costs but not recovering some part of the variable costs and is facing losses. [Option ID = 32363]
3. The firm must necessarily shut down operations as it faces losses in the short run [Option ID = 32364]
4. The firm is earning profits as prices are greater than average variable cost. [Option ID = 32365]
Correct Answer :
The firm is recovering the entire variable costs but not recovering some part of the fixed costs and is facing losses. [Option ID = 32362]
2) Under the Keynesian Theory of Employment, Interest and Income, the monetary policy shall be less effective if:
[Question ID = 8093]
1. Interest rates fell [Option ID = 32366]
2. Interest rates rose [Option ID = 32367]
3. Investment demand is inelastic [Option ID = 32368]
4. Investment demand is elastic [Option ID = 32369]
Correct Answer :
Investment demand is inelastic [Option ID = 32368]
3) Oligopoly is a market structure wherein there is:
A. intense competition among few firms in the industry.
B. firms could be producing homogeneous or differentiated products
C. firms recognise interdependence in their decision making
D. firms may enter into overt or tacit cartels.
Choose the correct answer from the options given below:
[Question ID = 8094]
1. A and D only
[Option ID = 32370]
2. A, C and D only
[Option ID = 32371]
3. A, B and D only
[Option ID = 32372]
4. A, B , C and D only
[Option ID = 32373]
Correct Answer :
A, B , C and D only
[Option ID = 32373]
4) Which of the following stakeholders are most financially hurt under conditions of unanticipated inflation?
[Question ID = 8095]
1. Borrowers with fixed rate loans [Option ID = 32374]
2. Borrowers with variable rate loans [Option ID = 32375]
3. Creditors [Option ID = 32376]
4. Neither borrowers and nor creditors are hurt. [Option ID = 32377]
Correct Answer :
Creditors [Option ID = 32376]
5) The production possibility curve is often represented as concave ( bowed out) from the origin because of
[Question ID = 8096]
1. Decreasing opportunity cost [Option ID = 32378]
2. Increasing opportunity cost [Option ID = 32379]
3. Constant opportunity cost [Option ID = 32380]
4. Constant returns to scale [Option ID = 32381]
Correct Answer :
Increasing opportunity cost [Option ID = 32379]
6) One possible cause of Stagflation is:
[Question ID = 8097]
1. Increase in aggregate supply
[Option ID = 32382]
2. Increase in aggregate demand
[Option ID = 32383]
3. Decrease in aggregate supply
[Option ID = 32384]
4. Decrease in aggregate demand
[Option ID = 32385]
Correct Answer :
Decrease in aggregate supply
[Option ID = 32384]
7) The price of good rises from Rs 4 to Rs 5 per unit and the quantity demanded for that good contracts from 100 units to
80 units. The price elasticity of demand for the good (in absolute terms) is:
[Question ID = 8098]
1. 1
[Option ID = 32386]
2. 0.8
[Option ID = 32387]
3. 1
[Option ID = 32388]
4. 0.8
[Option ID = 32389]
Correct Answer :
1
[Option ID = 32386]
8) Economic growth will be sluggish when interest rates rise, because;
[Question ID = 8099]
1. Firms will invest in fewer projects with future payoffs thus limiting growth. [Option ID = 32390]
2. Firms will invest in more projects with future payoffs thus limiting growth. [Option ID = 32391]
3. Firms will invest the same amount in projects with future payoffs at all interest levels thus leaving growth unaffected. [Option ID = 32392]
4. Firms will pay more in dividends and as a result retained earnings will fall. [Option ID = 32393]
Correct Answer :
Firms will invest in fewer projects with future payoffs thus limiting growth. [Option ID = 32390]
9) For a monopoly firm, under conditions of short run equilibrium earning just normal profits, the following relationship
holds true between price (P) and marginal cost (MC)
[Question ID = 8100]
1. P> MC
[Option ID = 32394]
2. P< MC
[Option ID = 32395]
3. P=MC
[Option ID = 32396]
4. P and MC are unrelated
[Option ID = 32397]
Correct Answer :
P> MC
[Option ID = 32394]
10) A basic assumption of the Classical School of economic thought is :
[Question ID = 8101]
1. Prices and wages are flexible. [Option ID = 32398]
2. Shortrun inflation is unlikely to occur. [Option ID = 32399]
3. Shortrun unemployment is unlikely to occur. [Option ID = 32400]
4. Equilibrium will reach equilibrium at any level of output. [Option ID = 32401]
Correct Answer :
Prices and wages are flexible. [Option ID = 32398]
11) Existence of external diseconomies of scale shall cause the
[Question ID = 8102]
1. Long run average cost curve to fall [Option ID = 32402]
2. Long run average cost curve to rise [Option ID = 32403]
3. Long run average cost curve to shift downwards [Option ID = 32404]
4. Long run average cost curve to shift upwards [Option ID = 32405]
Correct Answer :
Long run average cost curve to shift upwards [Option ID = 32405]
12) An increase in the long run aggregate supply curve can be caused by
[Question ID = 8103]
1. An increase in government spending. [Option ID = 32406]
2. An increase in literacy levels of the population. [Option ID = 32407]
3. An increase in taxes. [Option ID = 32408]
4. An increase in interest rates. [Option ID = 32409]
Correct Answer :
An increase in literacy levels of the population. [Option ID = 32407]
13) Which of the following conditions are to be satisfied for a market structure to be termed as monopol?
A. there is only one seller in the market
B. the seller produces a product for which there are no close substitutes
C. there exist strong barriers to entry
D. the monopoly firm has an upward rising supply curve.
Choose the correct answer from the options given below:
[Question ID = 8104]
1. A, B and C only
[Option ID = 32410]
2. A , B, C and D only
[Option ID = 32411]
3. A only
[Option ID = 32412]
4. A, B and D only
[Option ID = 32413]
Correct Answer :
A, B and C only
[Option ID = 32410]
14) An adverse supply shock
[Question ID = 8105]
1. Can be anticipated and decreases aggregate supply [Option ID = 32414]
2. Cannot be anticipated but decreases aggregate supply [Option ID = 32415]
3. Can be anticipated and increases aggregate supply [Option ID = 32416]
4. Cannot be anticipated but increases aggregate supply [Option ID = 32417]
Correct Answer :
Cannot be anticipated but decreases aggregate supply [Option ID = 32415]
15) What describes the most appropriate relationship between social cost, private cost and external cost in context of
"negative externalities of production":
[Question ID = 8106]
1. Social Cost= Private Cost ? External Cost [Option ID = 32418]
2. Social Cost = Private Cost + External Cost [Option ID = 32419]
3. Social Cost= (Private Cost) multiplied by (External Cost) [Option ID = 32420]
4. Social costs, private costs and external costs are unrelated to each other. [Option ID = 32421]
Correct Answer :
Social Cost = Private Cost + External Cost [Option ID = 32419]
16) During the expansionary phase of the business cycle
[Question ID = 8107]
1. Real GDP declines and inflation rises. [Option ID = 32422]
2. Real GDP rises and unemployment rises. [Option ID = 32423]
3. Real GDP rises and unemployment falls. [Option ID = 32424]
4. Interest rates rise and the number of business failures rise. [Option ID = 32425]
Correct Answer :
Real GDP rises and unemployment falls. [Option ID = 32424]
17) A monopolistically competitive firm advertises in order to
[Question ID = 8108]
1. Reduce the industry's barrier to entry [Option ID = 32426]
2. Shift the demand curve for its product to the left [Option ID = 32427]
3. Make the demand for its product less price elastic [Option ID = 32428]
4. Increase its negative externalities [Option ID = 32429]
Correct Answer :
Make the demand for its product less price elastic [Option ID = 32428]
18) Initially, a country is in a notrade situation and then this country decides to allow imports of a good. This will result in:
[Question ID = 8109]
1. Domestic consumers lose, domestic producers gain, and the gains outweigh the losses.
[Option ID = 32430]
2. Domestic consumers gain, domestic producers lose, and the gains outweigh the losses
[Option ID = 32431]
3. Domestic consumers gain, domestic producers lose, and the losses outweigh the gains.
[Option ID = 32432]
4. Domestic consumer gain, but domestic producers lose an equal amount
[Option ID = 32433]
Correct Answer :
Domestic consumers gain, domestic producers lose, and the gains outweigh the losses
[Option ID = 32431]
19) How much health and educational cess in 2019 has been imposed by the government on all union taxes?
[Question ID = 8110]
1. 1%
[Option ID = 32434]
2. 4%
[Option ID = 32435]
3. 3%
[Option ID = 32436]
4. 5%
[Option ID = 32437]
Correct Answer :
4%
[Option ID = 32435]
20) Who recommends the Minimum Support Price (MSP) fixed by the government?
[Question ID = 8111]
1. Ministry of Finance
[Option ID = 32438]
2. Empowered group of ministers
[Option ID = 32439]
3. CACP
[Option ID = 32440]
4. Minister of Agriculture
[Option ID = 32441]
Correct Answer :
CACP
[Option ID = 32440]
21) Identify the correct relationship between Marginal Standing Facility Rate (MSF), Repo rate (RR) and Reverse Repo Rate
(RRR)
[Question ID = 8112]
1.
[Option ID = 32442]
2.
[Option ID = 32443]
3.
[Option ID = 32444]
4.
[Option ID = 32445]
Correct Answer :
[Option ID = 32442]
22) The Asset Management Company managing Bharat ETF 22 is
[Question ID = 8113]
1. Bajaj Allianz [Option ID = 32446]
2. ICICI Prudential [Option ID = 32447]
3. Axis [Option ID = 32448]
4. DHFL [Option ID = 32449]
Correct Answer :
ICICI Prudential [Option ID = 32447]
23) Smart Metering System will be used for measuring
[Question ID = 8114]
1. Smart Cities in meters [Option ID = 32450]
2. Consumption of electric energy [Option ID = 32451]
3. Food Intake by Individuals [Option ID = 32452]
4. Consumption of Energy fuels [Option ID = 32453]
Correct Answer :
Consumption of electric energy [Option ID = 32451]
24) Bharat net is related to
[Question ID = 8115]
1. Connecting the rivers of India [Option ID = 32454]
2. Building ports in coastal towns [Option ID = 32455]
3. Providing Broad Band Services to Rural areas [Option ID = 32456]
4. Building Highways network [Option ID = 32457]
Correct Answer :
Providing Broad Band Services to Rural areas [Option ID = 32456]
25) The 2019 Ease of Doing Business Ranking in India is
[Question ID = 8116]
1. 60 [Option ID = 32458]
2. 66 [Option ID = 32459]
3. 69 [Option ID = 32460]
4. 63 [Option ID = 32461]
Correct Answer :
63 [Option ID = 32461]
26) In case of rising prices (inflation), FIFO method will:
[Question ID = 8117]
1. Provide lowest value of closing stock and profit [Option ID = 32462]
2. Provide highest value of closing stock and profit [Option ID = 32463]
3. Provide highest value of closing stock but lowest value of profit [Option ID = 32464]
4. Provide highest value of profit but lowest value of closing stock [Option ID = 32465]
Correct Answer :
Provide highest value of closing stock and profit [Option ID = 32463]
27) Which of the following will cause difference on a trial balance
[Question ID = 8118]
1. An invoice omitted from the sale day book [Option ID = 32466]
2. An invoice of Rs1500 entered in the sale day book as 15000 [Option ID = 32467]
3. An invoice of Rs5000 entered in the sale day book not included in the monthly total [Option ID = 32468]
4. A credit note entered to the sales day book [Option ID = 32469]
Correct Answer :
An invoice of Rs5000 entered in the sale day book not included in the monthly total [Option ID = 32468]
28) International Accounting Standards (IAS) have been developed by:
[Question ID = 8119]
1. The European commission
[Option ID = 32470]
2. The International accounting standard committee
[Option ID = 32471]
3. The financial reporting council
[Option ID = 32472]
4. All of these
[Option ID = 32473]
Correct Answer :
The International accounting standard committee
[Option ID = 32471]
29) How many years' financial statements are required to be annexed to the declaration for initiating voluntary liquidation?
[Question ID = 8120]
1. Previous 2 years or the period since incorporation whichever is later [Option ID = 32474]
2. Previous 2 years or the period since incorporation whichever is prior [Option ID = 32475]
3. Previous 3 years or the period since incorporation whichever is later [Option ID = 32476]
4. Previous 5 years or the period since incorporation whichever is later [Option ID = 32477]
Correct Answer :
Previous 2 years or the period since incorporation whichever is later [Option ID = 32474]
30) Which one of the following item cannot be recorded in the appropriation account in case of partnership accounting
[Question ID = 8121]
1. Interest on capital [Option ID = 32478]
2. Interest on drawings [Option ID = 32479]
3. Rent paid to partners [Option ID = 32480]
4. Partners salary [Option ID = 32481]
Correct Answer :
Rent paid to partners [Option ID = 32480]
31) In the absence of partnership deed ,interest on partners loan is payable by firm @
[Question ID = 8122]
1. 12% p.a [Option ID = 32482]
2. 6% p.a [Option ID = 32483]
3. 10% p.a [Option ID = 32484]
4. 16% p.a [Option ID = 32485]
Correct Answer :
6% p.a [Option ID = 32483]
32) Reserve capital can be called up
[Question ID = 8123]
1. In an emergency only [Option ID = 32486]
2. Any time by passing an ordinary resolution [Option ID = 32487]
3. In the event and for the purpose of company being wound ?up [Option ID = 32488]
4. If all directors agree [Option ID = 32489]
Correct Answer :
In the event and for the purpose of company being wound ?up [Option ID = 32488]
33) Stock split is the process of
[Question ID = 8124]
1. Consolidating the face value of the shares of the company [Option ID = 32490]
2. Reducing the capital of the company [Option ID = 32491]
3. Restructuring of capital of the company [Option ID = 32492]
4. Reducing face value of the shares of the company by dividing one shares into two or more parts [Option ID = 32493]
Correct Answer :
Reducing face value of the shares of the company by dividing one shares into two or more parts [Option ID = 32493]
34) Royalties revenue should be recognized
[Question ID = 8125]
1. On an accrual basis in accordance with the terms of the relevant agreement [Option ID = 32494]
2. On cash basis [Option ID = 32495]
3. On an actual basis [Option ID = 32496]
4. Revenue is recognized on the time proportion basis [Option ID = 32497]
Correct Answer :
On an accrual basis in accordance with the terms of the relevant agreement [Option ID = 32494]
35) AS29 is Applicable only to
[Question ID = 8126]
1. Provision for valuation adjustment for fixed Assets [Option ID = 32498]
2. Provision for Liabilities and charges [Option ID = 32499]
3. Provision for valuation adjustment for current assets [Option ID = 32500]
4. Furniture [Option ID = 32501]
Correct Answer :
Provision for Liabilities and charges [Option ID = 32499]
36) Interest paid by other than financial enterprise is shown in the cash flow statement under:
[Question ID = 8127]
1. Operating activities
[Option ID = 32502]
2. Investing activities
[Option ID = 32503]
3. Financing activities
[Option ID = 32504]
4. Accumulated profit
[Option ID = 32505]
Correct Answer :
Financing activities
[Option ID = 32504]
37) Profit prior to incorporation is
[Question ID = 8128]
1. Debited to Goodwill Account [Option ID = 32506]
2. Credited to General Reserve Account [Option ID = 32507]
3. Credited to capital reserve Account [Option ID = 32508]
4. Credited to Reserve [Option ID = 32509]
Correct Answer :
Credited to capital reserve Account [Option ID = 32508]
38) Which is the cost unit is applicable to the bicycle industry?
[Question ID = 8129]
1. Per part of bicycle
[Option ID = 32510]
2. Per bicycle
[Option ID = 32511]
3. Per tonne
[Option ID = 32512]
4. Per day
[Option ID = 32513]
Correct Answer :
Per bicycle
[Option ID = 32511]
39) Stores Ledger is a:
[Question ID = 8130]
1. Quantitative as well as value wise records of material received, issued and balance; [Option ID = 32514]
2. Quantitative record of material received, issued and balance [Option ID = 32515]
3. Value wise records of material received, issued and balance [Option ID = 32516]
4. Record of labour attendance [Option ID = 32517]
Correct Answer :
Quantitative as well as value wise records of material received, issued and balance; [Option ID = 32514]
40) Kaizen costing is applied to a product that is:
[Question ID = 8131]
1. Produced
[Option ID = 32518]
2. Under production
[Option ID = 32519]
3. Targeted to produce
[Option ID = 32520]
4. Sold to customers
[Option ID = 32521]
Correct Answer :
Under production
[Option ID = 32519]
41) Calculate EOQ (approx.) from the following details:
Annual Consumption: 24000 units,
Ordering cost: Rs. 10 per order,
Purchase price: Rs. 100 per unit,
Carrying cost: 5%
[Question ID = 8132]
1. 310
[Option ID = 32522]
2. 400
[Option ID = 32523]
3. 290
[Option ID = 32524]
4. 300
[Option ID = 32525]
Correct Answer :
310
[Option ID = 32522]
42) A worker is allowed 60 hours to complete the job but he completes in 50 hours. How much wages will he get under the
Halsey Plan?
[Question ID = 8133]
1. Rs. 720 [Option ID = 32526]
2. Rs. 540 [Option ID = 32527]
3. Rs. 600 [Option ID = 32528]
4. Rs. 660 [Option ID = 32529]
Correct Answer :
Rs. 660 [Option ID = 32529]
43) Which of the following is not a reason for an idle time variance?
[Question ID = 8134]
1. Wage rate increase [Option ID = 32530]
2. Machine breakdown [Option ID = 32531]
3. Illness or injury to worker [Option ID = 32532]
4. Non availability of material [Option ID = 32533]
Correct Answer :
Wage rate increase [Option ID = 32530]
44) A budget which is prepared in a manner so as to give the budgeted cost for any level of activity is known as :
[Question ID = 8135]
1. Master budget [Option ID = 32534]
2. Zero base budget [Option ID = 32535]
3. Functional budget [Option ID = 32536]
4. Flexible budget [Option ID = 32537]
Correct Answer :
Flexible budget [Option ID = 32537]
45) In process costing, if an abnormal loss arises, the process account is generally
[Question ID = 8136]
1. Debited with the scrap value of the abnormal loss units [Option ID = 32538]
2. Debited with the full production cost of the abnormal loss units [Option ID = 32539]
3. Credited with the scrap value of the abnormal loss units [Option ID = 32540]
4. Credited with the full production cost of the abnormal loss units [Option ID = 32541]
Correct Answer :
Credited with the full production cost of the abnormal loss units [Option ID = 32541]
46) If sales is Rs.1,00,000 in 2018 and Rs.4,00,000 in 2019 and loss Rs. 10,000 in 2018 and profit Rs. 50,000 in 2019, P/V
ratio will be
[Question ID = 8137]
1. 50% [Option ID = 32542]
2. 20% [Option ID = 32543]
3. 30% [Option ID = 32544]
4. 40% [Option ID = 32545]
Correct Answer :
20% [Option ID = 32543]
47) Improvement of profitvolume ratio can be done by
[Question ID = 8138]
1. Increasing selling price [Option ID = 32546]
2. Increasing the variable cost [Option ID = 32547]
3. Reducing the fixed cost [Option ID = 32548]
4. Increase in sales volume [Option ID = 32549]
Correct Answer :
Increasing selling price [Option ID = 32546]
48) Budget which is directed towards longterm strategic goals is known as
[Question ID = 8139]
1. Zero base budget [Option ID = 32550]
2. Capital budget [Option ID = 32551]
3. Rolling budget [Option ID = 32552]
4. Master Budget [Option ID = 32553]
Correct Answer :
Capital budget [Option ID = 32551]
49) The two ways to measure the financial performance of an investment centre are
[Question ID = 8140]
1. ROI and ROE [Option ID = 32554]
2. ROI and segment residual income [Option ID = 32555]
3. Segment residual income and ROE [Option ID = 32556]
4. ROI and leverage ratio [Option ID = 32557]
Correct Answer :
ROI and segment residual income [Option ID = 32555]
50) Which of the following organisations should not be advised to use service costing?
[Question ID = 8141]
1. Distribution service
[Option ID = 32558]
2. Hospitals
[Option ID = 32559]
3. Maintenance division of a manufacturing company
[Option ID = 32560]
4. Light engineering company
[Option ID = 32561]
Correct Answer :
Light engineering company
[Option ID = 32561]
51) If a curve is more peaked than the normal curve, it is called
[Question ID = 8142]
1. Mesokurtic [Option ID = 32562]
2. Platykurtic [Option ID = 32563]
3. Leptokurtic [Option ID = 32564]
4. Asymmetric [Option ID = 32565]
Correct Answer :
Leptokurtic [Option ID = 32564]
52) Two dice are thrown and the side of both dice facing up are observed. Which of the following events are mutually
exclusive events?
[Question ID = 8143]
1. A: Both dice are the same number B: Both dice are even number [Option ID = 32566]
2. A: One of the dice shows a two B: The sum is greater than 8 [Option ID = 32567]
3. A: The sum of both dice is even B: The product of both dice is odd [Option ID = 32568]
4. A: The product of both dice is even. B: The sum of both dice is odd. [Option ID = 32569]
Correct Answer :
A: One of the dice shows a two B: The sum is greater than 8 [Option ID = 32567]
53) Given that the equation for a line is Y=1810X, which of the following statement is true?
[Question ID = 8144]
1. The relationship of Y to X is direct and linear. [Option ID = 32570]
2. The relationship of Y to X is direct and nonlinear. [Option ID = 32571]
3. The relationship of Y to X is inverse and linear. [Option ID = 32572]
4. The relationship of Y to X is inverse and nonlinear. [Option ID = 32573]
Correct Answer :
The relationship of Y to X is inverse and linear. [Option ID = 32572]
54) Which of the following is not a property of the binomial distribution?
[Question ID = 8145]
1. The trials are statistically dependent. [Option ID = 32574]
2. Each trial has only two possible outcomes. [Option ID = 32575]
3. The probability of the outcomes does not change from trial to trial. [Option ID = 32576]
4. The experiment consists of a fixed number of trials `n' [Option ID = 32577]
Correct Answer :
The trials are statistically dependent. [Option ID = 32574]
55) Which approach to probability would be used to calculate the probability of India winning a match against Australia?
[Question ID = 8146]
1. Classical approach [Option ID = 32578]
2. Subjective approach [Option ID = 32579]
3. Relative frequency approach [Option ID = 32580]
4. Cluster approach [Option ID = 32581]
Correct Answer :
Relative frequency approach [Option ID = 32580]
56) In which of the following case would the Poisson distribution be a good approximation of the binomial distribution?
[Question ID = 8147]
1. n=40, p=0.32 [Option ID = 32582]
2. n=40, q=0.79 [Option ID = 32583]
3. n=10, p=0.03 [Option ID = 32584]
4. n=200, p=0.02 [Option ID = 32585]
Correct Answer :
n=200, p=0.02 [Option ID = 32585]
57) Under statistical dependence, if we sum up all the probabilities of the joint events in which a certain event A occurs,
the result is:
[Question ID = 8148]
1. Relative probability of A [Option ID = 32586]
2. The marginal probability of A [Option ID = 32587]
3. The conditional probability of A [Option ID = 32588]
4. Bayesian probability of A [Option ID = 32589]
Correct Answer :
The marginal probability of A [Option ID = 32587]
58) Which of the following is a measure of dispersion?
[Question ID = 8149]
1. Standard deviation [Option ID = 32590]
2. Median [Option ID = 32591]
3. Mode [Option ID = 32592]
4. Geometric mean [Option ID = 32593]
Correct Answer :
Standard deviation [Option ID = 32590]
59) While computing a weighted index, the current period quantities are used in the:
[Question ID = 8150]
1. Laspeyres method [Option ID = 32594]
2. Bayes method [Option ID = 32595]
3. Marshall Edgeworth method [Option ID = 32596]
4. Paasche's method [Option ID = 32597]
Correct Answer :
Paasche's method [Option ID = 32597]
60) Which of the following is a continuous random variable?
[Question ID = 8151]
1. Gender of the customer while selling an automobile. [Option ID = 32598]
2. Number of returns containing error in an audit of 100 tax returns. [Option ID = 32599]
3. Time between customer arrivals in a bank. [Option ID = 32600]
4. Number of employees absent from the first shift during working days. [Option ID = 32601]
Correct Answer :
Time between customer arrivals in a bank. [Option ID = 32600]
61) The proportion of total variation in the dependent variable that is explained by the independent variable is measured
by
[Question ID = 8152]
1. Coefficient of determination [Option ID = 32602]
2. Coefficient of correlation [Option ID = 32603]
3. Coefficient of deviation [Option ID = 32604]
4. Coefficient of skewness [Option ID = 32605]
Correct Answer :
Coefficient of determination [Option ID = 32602]
62) The difference between `expected payoff under perfect information' and `expected payoff under optimal action' is
called:
[Question ID = 8153]
1. Expected payoff [Option ID = 32606]
2. Expected value of perfect information [Option ID = 32607]
3. Expected regret [Option ID = 32608]
4. State of nature [Option ID = 32609]
Correct Answer :
Expected value of perfect information [Option ID = 32607]
63) Supply function of a product is X=4P +15. Its price elasticity of supply at P=Rs.5 will be:
2
[Question ID = 8154]
1. 1.50
[Option ID = 32610]
2. 1.74
[Option ID = 32611]
3. 1.70
[Option ID = 32612]
4. 2.00
[Option ID = 32613]
Correct Answer :
1.74
[Option ID = 32611]
64) If
, then X, Y, Z and W will be equal to
[Question ID = 8155]
1. 2, 5, 1, 3
[Option ID = 32614]
2. 2, 1, 5, 3
[Option ID = 32615]
3. 2, 1, 3, 5
[Option ID = 32616]
4. 5, 2, 1, 3
[Option ID = 32617]
Correct Answer :
2, 1, 3, 5
[Option ID = 32616]
65) Marginal cost function of a product is MC(X) =2(2X+9)
and fixed cost is Rs.4, then per unit cost at X=8 units will be
1/2
Rs.
[Question ID = 8156]
1. 2
[Option ID = 32618]
2. 3
[Option ID = 32619]
3. 2.5
[Option ID = 32620]
4. 1
[Option ID = 32621]
Correct Answer :
1
[Option ID = 32621]
66) A sum of Rs.10000 deposited for 10 years at 10% p.a. compounded continuously will amount to Rs.
[Question ID = 8157]
1. 20,000 [Option ID = 32622]
2. 21,000 [Option ID = 32623]
3. 27,183 [Option ID = 32624]
4. 25,000 [Option ID = 32625]
Correct Answer :
27,183 [Option ID = 32624]
67) A linear demand function provides that quantity demanded is NIL at P=Rs.50 and demand is 100 units if P=0. Its price
elasticity of demand |EP| at P=Rs.25 will be
[Question ID = 8158]
1. 2 [Option ID = 32626]
2. 1.5 [Option ID = 32627]
3. 1 [Option ID = 32628]
4. 1.5 [Option ID = 32629]
Correct Answer :
1 [Option ID = 32628]
68) Marginal revenue function of a product is MR(X)=26X. Corresponding demand function will be
[Question ID = 8159]
1. X=(P2)/3 [Option ID = 32630]
2. X=(2P)/3 [Option ID = 32631]
3. X=3(P2) [Option ID = 32632]
4. X=3(2P) [Option ID = 32633]
Correct Answer :
X=(2P)/3 [Option ID = 32631]
69) The average cost function of a product is AC(X)=X+5+36/X. The total cost of producing 10 units will be Rs.
[Question ID = 8160]
1. 36 [Option ID = 32634]
2. 85 [Option ID = 32635]
3. 100 [Option ID = 32636]
4. 186 [Option ID = 32637]
Correct Answer :
186 [Option ID = 32637]
70) If
, then A will be:
1
[Question ID = 8161]
1.
[Option ID = 32638]
2.
[Option ID = 32639]
3.
[Option ID = 32640]
4.
[Option ID = 32641]
Correct Answer :
[Option ID = 32640]
71) Profit is maximum when:
[Question ID = 8162]
1.
[Option ID = 32642]
2.
[Option ID = 32643]
3.
[Option ID = 32644]
4.
[Option ID = 32645]
Correct Answer :
[Option ID = 32642]
72) A bill of Rs.1000 due after 3 months is discounted at 12% p.a, the bank will give Rs.
[Question ID = 8163]
1. 98 [Option ID = 32646]
2. 97 [Option ID = 32647]
3. 99 [Option ID = 32648]
4. 95 [Option ID = 32649]
Correct Answer :
97 [Option ID = 32647]
73) The manufacturing cost of a product consists of Rs.1000 as overheads, material cost Rs.2 per unit and the labour cost
of Rs.X /90 for X units produced. Its most economic level of output will be:
2
[Question ID = 8164]
1. 200 units
[Option ID = 32650]
2. 250 units
[Option ID = 32651]
3. 300 units
[Option ID = 32652]
4. 350 units
[Option ID = 32653]
Correct Answer :
300 units
[Option ID = 32652]
74) If a demand function has unitary price elasticity of demand at all levels, then corresponding demand function will be
[Question ID = 8165]
1. X=P [Option ID = 32654]
2. X=Constant/P [Option ID = 32655]
3. X=P
2 [Option ID = 32656]
4. X=ln(P) [Option ID = 32657]
Correct Answer :
X=Constant/P [Option ID = 32655]
75) If interest is compounded semiannually at 12% p.a., then corresponding effective rate will be ?
[Question ID = 8166]
1. 12.00% p.a. [Option ID = 32658]
2. 13.00% p.a. [Option ID = 32659]
3. 12.50% p.a. [Option ID = 32660]
4. 12.36% p.a. [Option ID = 32661]
Correct Answer :
12.36% p.a. [Option ID = 32661]
76) Which one of the following statements is not FALSE?
[Question ID = 8167]
1. Entrepreneurship is a strategy to capture larger market share
[Option ID = 32662]
2. To a greater extent entrepreneurship promotes concentration of economic power
[Option ID = 32663]
3. Entrepreneurship does not promote capital formation
[Option ID = 32664]
4. Entrepreneurship encourages balanced regional growth
[Option ID = 32665]
Correct Answer :
Entrepreneurship encourages balanced regional growth
[Option ID = 32665]
77) When was Startup Action Plan launched by the Indian government?
[Question ID = 8168]
1. 2015
[Option ID = 32666]
2. 2016
[Option ID = 32667]
3. 2017
[Option ID = 32668]
4. 2018
[Option ID = 32669]
Correct Answer :
2016
[Option ID = 32667]
78) Which one of the following statements is not TRUE for an LLP?
[Question ID = 8169]
1. It is a body corporate [Option ID = 32670]
2. It does not have legal entity [Option ID = 32671]
3. It has perpetual succession [Option ID = 32672]
4. It is an alternative form to run corporate business [Option ID = 32673]
Correct Answer :
It does not have legal entity [Option ID = 32671]
79) We have moved to knowledge economy over the last few decades. Who among the following visualised the emergence
of Knowledge Worker?
[Question ID = 8170]
1. Peter Drucker [Option ID = 32674]
2. Peter Senge [Option ID = 32675]
3. CK Prahalad [Option ID = 32676]
4. Tom Peters [Option ID = 32677]
Correct Answer :
Peter Drucker [Option ID = 32674]
80) As suggested by Robert Katz, the Lower Level Managers need to prioritise different types of skills in this order.
[Question ID = 8171]
1. Human skills, Technical skills, Conceptual skills [Option ID = 32678]
2. Conceptual skills, Human skills, Technical skills [Option ID = 32679]
3. Technical skills, Human skills, Conceptual skills [Option ID = 32680]
4. Human skills, Conceptual skills, Technical skills [Option ID = 32681]
Correct Answer :
Technical skills, Human skills, Conceptual skills [Option ID = 32680]
81) For a manufacturing organization, which one of the following shall not be considered business function?
[Question ID = 8172]
1. Finance [Option ID = 32682]
2. Marketing [Option ID = 32683]
3. HR [Option ID = 32684]
4. Production [Option ID = 32685]
Correct Answer :
HR [Option ID = 32684]
82) Which one of the following is least characterised as a quality of a charismatic leader?
[Question ID = 8173]
1. Personal Risktaking [Option ID = 32686]
2. Sensitivity to follower needs [Option ID = 32687]
3. Vision and articulation [Option ID = 32688]
4. Conventional behaviour [Option ID = 32689]
Correct Answer :
Conventional behaviour [Option ID = 32689]
83) Filtering is considered as a ___________ to effective communication.
[Question ID = 8174]
1. Feedback
[Option ID = 32690]
2. Barrier
[Option ID = 32691]
3. Strength
[Option ID = 32692]
4. Comprehension
[Option ID = 32693]
Correct Answer :
Barrier
[Option ID = 32691]
84) Which of the following statements is not TRUE.
[Question ID = 8175]
1. The principle of unity of command leads to a thinking that a subordinate should have one supervisor [Option ID = 32694]
2. A simple organizational structure has a low degree of departmentalization and a narrow span of control [Option ID = 32695]
3. Divisional structure groups employees into units by product, service, customer, or geographic market area [Option ID = 32696]
4. Matrix structure combines functional and product structures [Option ID = 32697]
Correct Answer :
A simple organizational structure has a low degree of departmentalization and a narrow span of control [Option ID = 32695]
85) Robert Kaplan and David Norton developed Balanced Scorecard to measure strategic organizational performance.
Which one of the following is not the part of the scorecard?
[Question ID = 8176]
1. Financial performance [Option ID = 32698]
2. Culture [Option ID = 32699]
3. Product [Option ID = 32700]
4. Worklife conflict [Option ID = 32701]
Correct Answer :
Worklife conflict [Option ID = 32701]
86) As per Section 22, of the Companies Act 2013, for execution of a bill of exchange
[Question ID = 8177]
1. A company may or may not have common seal with authorization of Company Secretary [Option ID = 32702]
2. A company shall mandatorily have a common seal [Option ID = 32703]
3. A company shall not have a common seal [Option ID = 32704]
4. A company may or may not have common seal with authorization of company secretary and one director [Option ID = 32705]
Correct Answer :
A company may or may not have common seal with authorization of company secretary and one director [Option ID = 32705]
87) According to Section 2 (92) of the Companies Act, 2013, "unlimited company"means a company
[Question ID = 8178]
1. Not having any limit on the liability of its members. [Option ID = 32706]
2. Not having any limit on number of members [Option ID = 32707]
3. Not having any limit on amount of subscribed capital [Option ID = 32708]
4. Not having any limit on amount of creditors [Option ID = 32709]
Correct Answer :
Not having any limit on the liability of its members. [Option ID = 32706]
88) The fees payable to the Registrar(ROC)at the time of registration of a new company differs according to the
[Question ID = 8179]
1. Authorised capital [Option ID = 32710]
2. Paid up capital [Option ID = 32711]
3. Loan available [Option ID = 32712]
4. Number of members [Option ID = 32713]
Correct Answer :
Authorised capital [Option ID = 32710]
89) A Public Limited Company having share capital, may commence its business activities
[Question ID = 8180]
1. From the date of its incorporation [Option ID = 32714]
2. From the date of submission of documents [Option ID = 32715]
3. From the date of online registration of company [Option ID = 32716]
4. From the date of Commencement of Business Certificate [Option ID = 32717]
Correct Answer :
From the date of its incorporation [Option ID = 32714]
90) The offer under the Indian Contract Act 1872 does not stands lapsed
[Question ID = 8181]
1. By communicating the revocation [Option ID = 32718]
2. By lapse of time [Option ID = 32719]
3. By failure to accept [Option ID = 32720]
4. By accepting the offer [Option ID = 32721]
Correct Answer :
By accepting the offer [Option ID = 32721]
91) In a valid contract under the Indian Contract Act 1872 consideration may not be
[Question ID = 8182]
1. Past [Option ID = 32722]
2. Present [Option ID = 32723]
3. Future [Option ID = 32724]
4. Adequate [Option ID = 32725]
Correct Answer :
Adequate [Option ID = 32725]
92) An agreement under the Indian Contract Act 1872 is void if having a minor as
[Question ID = 8183]
1. Beneficiary [Option ID = 32726]
2. Offeror [Option ID = 32727]
3. Offeree [Option ID = 32728]
4. Shareholder [Option ID = 32729]
Correct Answer :
Offeror [Option ID = 32727]
93) Penalty under Information and Technology Act 2000, amounting to upto INR one Crore is not levied if, any individual or
group attempts to
[Question ID = 8184]
1. Introduce any virus [Option ID = 32730]
2. Causes to introduce a virus [Option ID = 32731]
3. Without permission access a computer system [Option ID = 32732]
4. With permission secure access to a computer system or network. [Option ID = 32733]
Correct Answer :
With permission secure access to a computer system or network. [Option ID = 32733]
94) The essentials of valid agency, prescribed under the Contract Act, 1872 does not include:
[Question ID = 8185]
1. Privity of contract [Option ID = 32734]
2. Principal be competent to contract [Option ID = 32735]
3. Agent need not have contractual capacity [Option ID = 32736]
4. Agency for Criminal Act [Option ID = 32737]
Correct Answer :
Agency for Criminal Act [Option ID = 32737]
95) Sec 2 (a) of the Information and Technology Act 2000 defines:
[Question ID = 8186]
1. Addressee [Option ID = 32738]
2. Access [Option ID = 32739]
3. Adjudicating Officer [Option ID = 32740]
4. Appropriate Government [Option ID = 32741]
Correct Answer :
Access [Option ID = 32739]
96) Finance Bill 2020 proposed to reduce the rate of Dividend Distribution Tax (DDT) which is applicable on the amount of
dividend declared, distributed or paid, by a domestic company, from 15% to ?
[Question ID = 8187]
1. 12.5% [Option ID = 32742]
2. 10% [Option ID = 32743]
3. 5% [Option ID = 32744]
4. 0% [Option ID = 32745]
Correct Answer :
0% [Option ID = 32745]
97) For the assessment year 202021, dividend paid by an Indian company outside India is deemed to be
[Question ID = 8188]
1. Received in India [Option ID = 32746]
2. Accrued in India [Option ID = 32747]
3. Received outside India [Option ID = 32748]
4. Accrued outside India [Option ID = 32749]
Correct Answer :
Accrued in India [Option ID = 32747]
98) For the assessment year 202021, the parent in whose hands the income of minor child is clubbed can claim an
exemption of ?
[Question ID = 8189]
1. Rs. 3,500 in respect of income of two minor children [Option ID = 32750]
2. Rs. 3,500 in respect of income of each minor child [Option ID = 32751]
3. Rs. 1,500 in respect of income of two minor children [Option ID = 32752]
4. Rs. 1,500 in respect of income of each minor child [Option ID = 32753]
Correct Answer :
Rs. 1,500 in respect of income of each minor child [Option ID = 32753]
99) For the assessment year 202021, loss from the activity of owning and maintaining race horses can be carried forward
to ?
[Question ID = 8190]
1. 4 years
[Option ID = 32754]
2. 8 years
[Option ID = 32755]
3. Unlimited number of years
[Option ID = 32756]
4. Can never be carried forward
[Option ID = 32757]
Correct Answer :
4 years
[Option ID = 32754]
100) For the assessment year 202021, the deduction under section 80G is respect of donation to National Children's Fund
is ?
[Question ID = 8191]
1. 50% of the amount donated without any limit on the donated amount [Option ID = 32758]
2. 100% of the amount donated without any limit on the donated amount [Option ID = 32759]
3. 50% of the amount donated subject to some limits on the donated amount [Option ID = 32760]
4. 100% of the amount donated subject to some limits on the donated amount [Option ID = 32761]
Correct Answer :
100% of the amount donated without any limit on the donated amount [Option ID = 32759]
This post was last modified on 27 December 2020