Commerce Questions and Answers for Competitive Exams | Commerce Quiz Set 1

Questions
1 Which one of the following is the governing factor in deciding the type of redressal agency which will deal with the dispute of a consumer ?
1 Area of sale of goods and services
2 Type of goods and services sold
3 The choice of the consumer
4 The value of goods and services sold

Answer: The value of goods and services sold
2 Which one of the following statement is not correct relating to Competition Policy and Law ?
1 Collusion and dominance have potential for unfair competition.
2 The appeal against decisions of Competition Commission of India can be made to the Competition Appellate Tribunal.
3 State monopolies, government’s business policies and functioning of Regulatory Authorities cannot be scrutinized under this law.
4 Abuse of dominance rather than dominance should be the key for Competition Policy/ Law.

Answer: State monopolies, government’s business policies and functioning of Regulatory Authorities cannot be scrutinized under this law.
3 Which one of the following is not correct with reference to standard costing ?
1 Standard costing is a system where pre determined costs are used for control of entire organisation
2 Standard may be expressed in quantitative and monetary measures
3 Only adverse variances are investigated intensively
4 Standard is determined for each element of cost

Answer: Only adverse variances are investigated intensively
4 Which one of the following statements is not true ?
1 When there is one liquidation and one formation it is known as external construction
2 Goodwill or Capital reserve arises only when the amalgamation is in the nature of merger
3 Under the pooling of interest method, the transferee company incorporates the assets and liabilities of the transferor company at book value
4 The vendor company transfers preliminary expenses (at the time of absorption) to equity shareholders’ account

Answer: Goodwill or Capital reserve arises only when the amalgamation is in the nature of merger
5 The application of

X2

-test as parametric test will be in which one of the following situations ?
1 Test of independence of attributes
2 Test of goodness of fit of a specific type of distribution
3 Test for population variance on the basis of small sized sample variance
4 Test of homogeneity of several populations with respect to some characteristic of interest

Answer: Test for population variance on the basis of small sized sample variance
6 In which one of the following situations is the application of t-test is most appropriate ?
1 Testing the significance of coefficient of correlation between paired observations of small sized sample
2 Testing the significance of coefficient of correlation between paired observations of large sized sample
3 Comparing variances of two small sized samples
4 Testing the significance of the difference among mean values of more than two samples groups

Answer: Testing the significance of coefficient of correlation between paired observations of small sized sample
7 Which of the following is not a logical data structure ?
1 Chain
2 Stack
3 List
4 Tree

Answer: Chain
8 Which one among the following has the largest share of exports from India ?
1 Agriculture and Allied Commodity
2 Gems and Jewellery
3 Handicrafts
4 Electronic Goods

Answer: Gems and Jewellery
9 Which of the following statements are correct ? Indicate the correct code.
  • Statement (I) : Virtue ethics is a form of ethical approach associated with Aristotle which stresses the importance of developing virtuous principles, ‘right’ character and the pursuit of a virtuous life.
  • Statement (II) : Utilitarianism is an ethical approach where an action is right if, and only if, it conforms to the principle of utility, whereby utility is minimised and pain and unhappiness minimised more than any alternative
  • Statement (III) : ‘Deontological Ethics’ is an ethical approach where rightness or wrongness of an action or decision is not judged to be based exclusively on the consequences of that action or decision.
1 (I), (II) and (III)
2 (I) and (II)
3 (I) and (III)
4 (II) and (III)

Answer:(I) and (III)
10 Which of the statements are not correct ? Indicate the correct code.
  • Statement (I) : Social assistance is financed by tripartite or bipartite contributions.
  • Statement (II) : Social insurance ignores the income and means of liable relation.
  • Statement (III) : Social assistance makes the beneficiary a first charge on the liable relations.
  • Statement (IV) : Social assistance aims at to provide maximum subsistence to those who can not make it on their own.
1 (I) and (II)
2 (II) and (III)
3 (I) and (IV)
4 (III) and (IV)

Answer: (I) and (IV)
11 Which among the following is not a correct statement ?
1 Designated bank refers to any bank in India, which has been authorised by the RBI to act as banker to FII.
2 Domestic custodian includes any person carrying on the activities of providing custodial services in respect of securities
3 Sub-account includes those institutions, established or incorporated in India, whether incorporated or not, on whose behalf investments are proposed to be made in India by FIIs.
4 A domestic portfolio manager or domestic asset management company shall also be eligible to be registered as FII to manage the funds of sub-accounts.

Answer: Sub-account includes those institutions, established or incorporated in India, whether incorporated or not, on whose behalf investments are proposed to be made in India by FIIs.
12 Identify the incorrect statement from the following :
1 Broken-date contract is a full - month forward contract.
2 Currency arbitrage refers to making profit by buying a currency cheap in one market and selling it dear in the other market at a particular point of time.
3 Currency Futures Market refers to organised foreign exchange market where a fixed amount of a currency is exchanged on a fixed maturity date in the pit.
4 Currency Options Market refers to market for the exchange of currency where the option buyer enjoys the privilege of not exercising the option if the rate is not favourable.

Answer: Broken-date contract is a full - month forward contract.
13 Dividends declared by Unit Trust of India or by mutual fund is :
1 Fully exempt in the hands of unit holders
2 Fully taxable in the hands of unit holders
3 Fully exempt in the hands of individual unit holders and fully taxable in the hands of institutional unit holders
4 Included in the gross total income but a deduction is allowed under section 80 L

Answer: Fully exempt in the hands of unit holders
14 Exemption, under Sec.54 F of the Income Tax Act, 1961, shall not be allowed if the assessee, on the date of transfer owns :
1 Any residential house
2 A residential house which is let out
3 A house which is self occupied
4 More than one residential house

Answer: More than one residential house
15 The income from the sale of a machinery used in business is treated as :
1 Income from business and profession
2 Short-term capital gain
3 Long-term capital gain
4 Income from other sources

Answer: Short-term capital gain

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