Commerce Questions and Answers for Competitive Exams | Commerce Quiz Set 22

Questions
1 Which of the following is not a reason for a firm to lose its market share to competitors ?
1 A product/model is perceived by the target customer group as satisfying needs.
2 Customers not being covered by the company’s sales force and distribution outlets.
3 Customers may have been lost to competitors due to poor service by the firm or its sales personnel or product becoming obsolete or more expensive.
4 All the above are correct reasons for given condition.

Answer: A product/model is perceived by the target customer group as satisfying needs.
2 An elaborated version of the idea expressed in meaningful consumer term is called
1 Product image
2 Product idea
3 Prototype
4 Product concept

Answer: Product concept

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3 Debt financing is a cheaper source of finance because of
1 Time value of money
2 Rate of interest
3 Dividends are not payable to lenders
4 Tax deductibility of interest

Answer: Tax deductibility of interest
4 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 rate of return.
3 Timing of cash flows is relevant.
4 Existing investment in a project is not treated as sunk cost.

Answer: Existing investment in a project is not treated as sunk cost.
5 Which of the following statements is not correct ?
1 The cost of capital is required rate of return to ascertain the value of the firm.
2 Different sources of funds have a specific cost of capital related to that source only.
3 Cost of capital does not comprise any risk premium.
4 Cost of capital is basic data for NPV technique.

Answer: Cost of capital does not comprise any risk premium.
6 Which of the following is not the quality of human resources in any organization ?
1 Their behaviour to stimuli is often inconsistent and unpredictable.
2 They depreciate with passage of time in terms of skills.
3 They are heterogeneous.
4 Retaining qualified human resources is a challenge for managers.

Answer: They depreciate with passage of time in terms of skills.
7 A statement containing items such as job title, location, summary, duties, materials used, working conditions etc., is called
1 Job specification
2 Job evaluation
3 Job description
4 Job analysis

Answer: Job description
8 Which organizational analysis method is used, among the following, to develop various efficiency indices relating to contribution of human capital in meeting the organizational goals ?
1 Objectives analysis
2 Resource utilization analysis
3 Task analysis
4 Organizational climate analysis

Answer: Resource utilization analysis
9 In which year, IFCI Act was amended in order to make it possible to provide assistance, inter alia, for medical, health or other allied services ?
1 1960
2 1973
3 1970
4 1986

Answer: 1986
10 SIDBI was set up as a subsidiary of IDBI to
1 Take over the functions of small business financing of IDBI.
2 Take over the venture capital operations of ICICI.
3 Reconstruct and rehabilitate the sick and closed industrial units financed by IDBI.
4 Facilitate, finance and promote India’s Foreign trade.

Answer: Take over the functions of small business financing of IDBI.
11 Letters of credit, Guarantees, Forward Contracts etc., come under which one of the following ?
1 Liabilities of a bank
2 Assets of a bank
3 Foreign exchange items of a bank
4 Off-balance sheet items of a bank

Answer: Off-balance sheet items of a bank
12 Which of the following is not regulated by The Competition Act, 2002 ?
1 Abuse of dominant position
2 Anti-competitive agreements
3 Medical negligence
4 Predatory pricing

Answer: Medical negligence
13 If bonus shares are issued out of pre- acquisition profit, it will have
1 Direct effect on the Consolidated Balance Sheet
2 No effect on the Consolidated Balance Sheet
3 No effect on Net Profit
4 None of the above

Answer: No effect on the Consolidated Balance Sheet
14 A standard which can be attained under the most favourable working conditions is called
1 Attainable Standard
2 Basic Standard
3 Current Standard
4 Ideal Standard

Answer: Ideal Standard
15 11. Which of the following ratios are taken into consideration by a banker before sanctioning the loan
1 Proprietory Ratio
2 Stock-Turnover Ratio
3 Debt-Equity Ratio
4 All of the above

Answer: Debt-Equity Ratio

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