Commerce Questions and Answers - Set 3

(1) Which one of the following equates the present value of cash out flows and the present value of expected cash inflows from a project ?

[1] Net Present Value

[2] Internal Rate of Return

[3] Pay back Period

[4] Accounting Rate of Return

Answer: Internal Rate of Return

(2) Which one of the following is not true ?

[1] Material resources are subject to laws of mechanics and they cannot have an output greater than the input.

[2] Human resources are capable of exponential growth and development.

[3] Human resources cannot yield an output that may be far greater than what the value of their input warrants.

[4] In current scenario, gradually, the emphasis has shifted from muscle power to use of mind power.

Answer: Human resources cannot yield an output that may be far greater than what the value of their input warrants.

(3) The pluralistic approach of industrial conflict is based on which one of the following basic assumption / premise ?

[1] That conflict occurs when the tendency of industrial society is to treat worker as an isolated individual and deprive him of all control over his environment

[2] That an enterprise contain people with coalition of different interests

[3] That industrial conflict is a part of the broader social conflict between classes

[4] That no consensus is possible, in case of conflicts, because people are with different socio - cultural backgrounds.

Answer: That an enterprise contain people with coalition of different interests

(4) The Job Description Index (JDI) Technique is used for measuring which one of the following ?

[1] Job attitudes

[2] Job descriptions/definitions

[3] Job analysis records

[4] Job skill requirements

Answer: Job attitudes

(5) What is Hawala ?

[1] Tax evasion

[2] Bank robbery

[3] Illegal trading in stock exchanges

[4] Illegal transactions of foreign exchange

Answer: Illegal transactions of foreign exchange

(6) Who among the following has given Absolute Advantage Model of international trade ?

[1] Adam Smith

[2] David Recardo

[3] Hackscher Ohlin

[4] William Petty

Answer: Adam Smith

(7) Which among the following is not an international economic institution ?

[1] IMF

[2] IBRD

[3] ADB

[4] IFRS

Answer: IFRS

(8) GNP at market prices2Indirect taxes1subsidies is referred to as :

[1] GNP at factor cost

[2] GDP at factor cost

[3] NNP at factor cost

[4] NDP at factor cost

Answer: GNP at factor cost

(9) EDI system got legal recognition under which one of the following Acts ?

[1] Electronics Act, 1996

[2] Right to Data Act, 1998

[3] DGFT Act, 1999

[4] Information Technology Act, 2000

Answer: Information Technology Act, 2000

(10) Following statements are related to futures contracts. Choose the statements that are not true :

(a) Purchase of a futures contract is called short position.
(b) Currency futures are traded on an exchange in standardised form and in fixed quantity.
(c) Default risk in futures contract is high compared to forward contract.

[1] only (a) and (b)

[2] only (a) and (c) (3)

[3] (a), (b) and (c)

[4] only (b)

Answer: only (a) and (c) (3)

(11) Labour Rate of Pay Variance can be calculated by which one of the following equations ?

[1] Budgeted Labour Costs2Actual Labour Costs

[2] (Standard Hours2Actual Hours)3Actual Wage Rate

[3] (Standard Wage Rate2Actual Wage Rate)3Actual Hours Worked

[4] (Standard Wage Rate2Actual Wage Rate)3Standard Hours Worked

Answer: (Standard Wage Rate2Actual Wage Rate)3Actual Hours Worked

(12) Preparation of consolidated statement of accounts as per AS - 21 is :

[1] Optional

[2] Mandatory for Private Ltd. Companies

[3] Mandatory for Listed Companies

[4] Mandatory for all Companies

Answer: Mandatory for Listed Companies

(13) Which one of the following is not true of cash Budget ?

[1] The shortage or excess of cash would appear in a particular period.

[2] All inflows would arise before outflows for those periods.

[3] Only revenue nature cash flows are shown.

[4] Proceeds from issue of share capital is shown as an inflow.

Answer: Only revenue nature cash flows are shown.

(14) When a consumer increases units of X - commodity by giving up some units of Y- commodity and even to attain the same level of satisfaction, the marginal rate of substitution, will be calculated by :

[1] Change in X - Commodity divided by change in Y - Commodity

[2] Change in X - Commodity divided by marginal utility of Y - Commodity

[3] Change in Y - Commodity divided by change in X - Commodity

[4] Change in Y - Commodity divided by marginal utility of X - Commodity

Answer: Change in Y - Commodity divided by change in X - Commodity

(15) In the short-run, when a simple monopoly firm attains equilibrium and earns only normal profit, its level of output will correspond to :

[1] Lowest average cost

[2] Average cost above optimum level of output

[3] Average cost equals marginal cost

[4] Marginal cost much below average cost

Answer: Marginal cost much below average cost

Commerce Questions and Answers for Competitive Exams | Commerce Quiz Set 3

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Commerce Questions and Answers for Competitive Exams | Commerce Quiz Set 3

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