Commerce Questions and Answers for Competitive Exams | Commerce Quiz Set 21

Questions
1 X is employed in a private company at a salary of Rs. 70,000 per month and Rs. 10,000 per month as dearness pay. He received Rs. 2,000 per month as house rent allowance. He paid Rs. 2,500 per month as house rent. What is the exempted portion of house rent allowance ?
1 Rs. 2,500
2 Rs. 2,000
3 Rs. 1,000
4 NIL

Answer: NIL
2 Surcharge is payable by an individual where the total income exceeds
1 Rs. 10 lacs
2 Rs. 25 lacs
3 Rs. 50 lacs
4 Rs. 1 crore

Answer: ` 1 crore

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3 Which one of the following statements is not correct ?
1 A person may not have assessable income but still be an assessee.
2 In some cases, the assessment year and the previous year can be same.
3 An Indian company is always resident assessee.
4 Surcharge is additional tax calculated on total income.

Answer: Surcharge is additional tax calculated on total income.
4 From which Five Year Plan “Growth with Social Justice” has received emphasis ?
1 5th
2 6th
3 7th
4 10th

Answer: 5th
5 Which of the following is not the objective of the Competition Act, 2002 ?
1 Prohibition of Restrictive Trade Practices.
2 Prohibition of Dominant Position
3 Prohibition of Anti-competitive Agreements
4 Regulation of Combinations

Answer: Prohibition of Restrictive Trade Practices.
6 Consolidated financial statements are prepared on the principle
1 In form the companies are one entity, in substance they are separate.
2 In form companies are separate, in substance they are one.
3 In form and substance the companies are one entity.
4 In form and substance the companies are separate.

Answer: In form and substance the companies are one entity.
7 Which one of the following statements is true about standard labour time ?
1 Standard labour time indicates the time in hours needed for a specific process.
2 It is standardized on the basis of past experience.
3 In fixing standard time due allowance should not be given to fatigue and tool setting.
4 The Production Manager does not provide any input in setting the labour time standards.

Answer: Standard labour time indicates the time in hours needed for a specific process.
8 Under the yield method of valuation of equity share capital, if for an equity share of ` 50, the normal rate of return is 10% and expected rate of return is 5%, then the value of an equity share will be
1 ` 25
2 ` 40
3 ` 50
4 ` 100

Answer: ` 25
9 The Kinked demand curve model of oligopoly was developed by
1 Augustin Cournot
2 Stackelberg
3 Edgeworth
4 Sweezy

Answer: Sweezy
10 For the success of the penetration price policy, which one of the following is not desirable ?
1 Short-run demand for the product to have elasticity greater than unity.
2 Availability of economies of large scale production
3 Product to have very low cross-elasticity of demand.
4 Easy acceptance and adoption of the product by the consumers.

Answer: Product to have very low cross-elasticity of demand.
11 Which one of the following is a false statement ?
1 The signs of the regression coefficients are always the same.
2 Correlation coefficient is the geometric mean of the two regression coefficients.
3 The co-variance between two variables divided by the product of their standard deviations produces the value of coefficient of correlation.
4 Coefficient of correlation is independent of origin but not of scale.

Answer: Coefficient of correlation is independent of origin but not of scale.
12 If the two regression coefficients are 0.8 and 0.2, then the value of coefficient of correlation is
1 – 0.16
2 + 0.50
3 + 0.40
4 – 0.40

Answer: + 0.40
13 Process of arranging data into a new order is called
1 Manipulation of data
2 Standardization of data
3 Sequencing of data
4 Standardized input

Answer: Manipulation of data
14 Developed by the Special Projects Office of the U.S. Navy; this technique was first formally applied to the planning and control of the Polaris Weapon System in 1958 and worked well in expediting the completion of that programme. The technique is known as
1 Gantt Chart
2 CRM
3 PERT
4 Milestone budgeting

Answer: PERT
15 The marketing task which finds ways to alter the time pattern of demand through flexible pricing, promotion and other incentives is called
1 Demarketing
2 Fleximarketing
3 Synchromarketing
4 Gorilla Marketing

Answer: Synchromarketing

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