Commerce Questions and Answers for Competitive Exams | Commerce Quiz Set 13

(1) The concept of present value is based on the
[1] Principle of compounding
[2] Principle of discounting
[3] (A) and (B)
[4] None of the above
Answer: Principle of discounting
(2) Cost of capital from all the sources of funds is called
[1] Specific cost
[2] Composite cost
[3] Implicit cost
[4] Simple Average cost
Answer: Specific cost

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(3) On which of the following, at the initial stage, the Indian IT companies relying more for getting good IT professionals ?
[1] Job Portals
[2] Placement Agencies
[3] Campus Placement
[4] All of the above
Answer: Campus Placement
(4) In India, the Commercial Banks are given license of operation by
[1] The Government of India
[2] The Ministry of Finance
[3] Reserve Bank of India
[4] Banking Companies Regulation Act, 1949
Answer: Reserve Bank of India
(5) Imperial Bank was established on January 27, 1921 on the advise of
[1] J. M. Keynes
[2] Lord Illingworth
[3] King George V
[4] Winston Churchill
Answer: J. M. Keynes
(6) The provisions of General Reserve in Banking Companies are made keeping in view the provisions of
[1] Indian Companies Act, 1956
[2] Banking Companies Act, 1949
[3] SEBI Act, 1992
[4] Statutory Auditor
Answer: Banking Companies Act, 1949
(7) EPCG denotes
[1] Export Potential and Credit Guarantee
[2] Earning Promotion and Credit Guarantee
[3] Export Promotion and Credit Guarantee
[4] Export Potential and Credit Goods
Answer: Export Promotion and Credit Guarantee
(8) Which one is not an objective of IMF ?
[1] To promote international monetary co-operation
[2] To ensure balanced international trade
[3] To finance productive efforts according to peace-time requirement
[4] To ensure exchange rate stability
Answer: To finance productive efforts according to peace-time requirement
(9) Which one is not an international organisation ?
[1] SAARC
[2] ASEM
[3] ASEAN
[4] CBDT
Answer: CBDT
(10) Which of the following sector is not open for 100% foreign direct investment ?
[1] Oil refining
[2] Airport development
[3] Power plants
[4] Coal
Answer: Coal
(11) Which of the following statements is true ?
[1] Rate of return on capital is Acid Test Ratio.
[2] Equity capital to fixed interest- bearing securities is a turnover ratio.
[3] Capital gearing is the ratio of equity capital to fixed-interest bearing securities.
[4] Input and output ratio is a measure of profitability
Answer: Capital gearing is the ratio of equity capital to fixed-interest bearing securities.
(12) If sales of a firms are ` 74 lakh; variable costs ` 40 lakh; fixed costs ` 8 lakh, then operating leverage of the firm will be
[1] 1.87
[2] 2.51
[3] 1.31
[4] 3.27
Answer: 1.31
(13) Which one of the following is not the probability based sampling technique ?
[1] Cluster sampling
[2] Stratified sampling
[3] Snow-ball samplingSnow-ball sampling
[4] Multi-stage sampling
Answer: Snow-ball sampling
(14) The tendency to perceive another person as belonging to a single class or category is known as
[1] Stereotyping
[2] Halo effect
[3] Assimilation
[4] Attribution
Answer: Stereotyping
(15) Which of the following is not a feature of Weber’s ‘Bureaucracy’ ?
[1] Hierarchy
[2] Official rules
[3] Division of work
[4] Personal relationships
Answer: Personal relationships

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