Commerce Questions and Answers - Set 7

(1) Which one of the following statements is false ?

[1] Normally, a price demand curve slopes downward from left to right.

[2] Economies of scale and economies of scope are the same.

[3] For optimization, equality between marginal cost and marginal revenue is a necessary condition but it is not a sufficient one

[4] Law of variable proportions denotes input-output relationship during short-run.

Answer: Economies of scale and economies of scope are the same.

(2) Which of the following is not an accounting software package ?

[1] Quick Books

[2] Sage one

[3] Sage M

[4] Sage 50

Answer: Sage M

(3) If the population is heterogeneous, which one of the following probability sampling methods is more appropriate ?

[1] Sequential sampling

[2] Quota sampling

[3] Double sampling

[4] Stratified sampling

Answer: Stratified sampling

(4) Which one of the following statements is false ?

[1] Both correlation and regression co-efficients have same sign.

[2] Arithmetic mean of the regression co-efficients is always more than the correlation co-efficient

[3] Regression co-efficients are independent of both the origin and scale.

[4] Correlation co-efficient is the square root of two regression co-efficients.

Answer: Regression co-efficients are independent of both the origin and scale.

(5) Black box model in marketing relates to :

[1] Marketing planning

[2] Marketing mix

[3] Marketing control

[4] Consumer behaviour

Answer: Consumer behaviour

(6) 28. Items, considered part of the augmented product, do not include :

[1] Guarantee

[2] Complementary products

[3] Warranty

[4] Channels of distribution

Answer: Channels of distribution

(7) Which of the following is not a type of direct marketing ?

[1] Direct mail marketing

[2] Telemarketing

[3] Retail marketing

[4] Email direct marketing

Answer: Retail marketing

(8) ‘Press release’ is a part of :

[1] Public relations

[2] Sales promotion

[3] Advertising

[4] None of the above

Answer: Public relations

(9) In capital budgeting, the term capital rationing implies :

[1] that no retained earnings are available

[2] that no external funds can be raised

[3] that limited funds are available for investment.

[4] that no fresh investment is required in current year

Answer: that limited funds are available for investment.

(10) In certainty equivalent approach, adjusted cash flows are discounted at

[1] Accounting Rate of Return

[2] Internal Rate of Return

[3] Hurdle Rate

[4] Risk Free Rate

Answer: Risk Free Rate

(11) Combined leverage is calculated as :

[1] Operating Leverage1Financial Leverage

[2] Operating Leverage2Financial Leverage

[3] Operating Leverage3Financial Leverage

[4] Operating Leverage4Financial Leverage

Answer: Operating Leverage3Financial Leverage

(12) Which of the following is not true with reference to capital budgeting ?

[1] Capital budgeting is related to asset replacement decisions.

[2] Cost of capital is equal to minimum required return.

[3] Existing investment in a project is not treated as sunk cost.

[4] Timing of cash flows is relevant.

Answer: Existing investment in a project is not treated as sunk cost.

(13) What is Economic Order Quantity ?

[1] Cost of an order

[2] Reorder level

[3] Cost of stock

[4] Optimum order size

Answer: Optimum order size

(14) Which of the following is not a basic objective of HRM ?

[1] To attract HR into the organisation

[2] To develop and motivate HR for better performance

[3] To have the reward and punishment system for HR

[4] To integrate and maintain HR in the organisation

Answer: To have the reward and punishment system for HR

(15) What is ‘gate hiring’ ?

[1] o select people who approach on their own for employment in the organisation.

[2] To select people who are recommended by the employees.

[3] To select people from public employment exchanges.

[4] To select people supplied by labour contractors

Answer: o select people who approach on their own for employment in the organisation.

Commerce Questions and Answers for Competitive Exams | Commerce Quiz Set 7

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Commerce Questions and Answers for Competitive Exams | Commerce Quiz Set 7

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