UGC NET Mock Test 14 on Commerce - 20 Questions for Practice

UGC NET Mock Test 14 on Commerce – 20 Questions for Practice

Take Test 14 20 questions for Practice – Commerce Test 14

1. Assertion (A): Dividend paid out of pre-acquisition profits by the subsidiary company to the holding company is deducted from the cost of investment. Reason (R): Dividend paid out of pre-acquisition profits by the subsidiary company should be treated as a return of capital to the holding company. Which one of the following is correct?

a.Both (A) and (R) are correct.

b.Both (A) and (R) are wrong.

c.(A) is wrong, but (R) is correct.

d.(A) is correct, but (R) is wrong.

2. Which of the following ratios are taken into consideration by a banker before sanctioning the loan ____?

a.Proprietary Ratio

b.Stock-Turnover Ratio

c.Debt-Equity Ratio

d.All of the above

3. An MNC that maintains a balance between the home market and host market oriented policies is _____?

a.Polycentric firm

b.Geocentric firm

c.None of the above

d.Ethnocentric firm

4. The present regime of subsidies can be improved by focussing on (i) Reducing the overall scale of subsidies. (ii) Making subsidies as transparent as possible. (iii) Giving a specific amount to the Member of Parliament for subsidies. (iv) Setting clear limits on duration of any new subsidy scheme. (v) Eliminating system of periodic review of subsidies (vi) Using subsidies for well-defined economic objectives.

a.(ii), (iii), (iv) and (v)

b.(i), (iii), (iv) and (vi)

c.(i), (ii), (iv) and (vi)

d.(i), (ii), (iii) and (iv)

5. The freedom of private enterprise is the greatest in the free market economy. This is characterized by which of the following assumptions? (i) The factors of production (labour, land, capital) are privately owned and production occurs at the initiative of the private enterprise. (ii) Income is received in monetary form by the sale of services of the factors of production and from the profits of the private enterprise. (iii) Members of the free market economy have freedom of choice in so far as consumption, occupation, savings and investments are concerned. (iv) The free market economy is not planned, controlled or regulated by the government. (v) The free market economy is prone to corrupt practices.

a.(ii), (iii), (iv) and (v)

b.(i), (ii) and (iii)

c.(i), (ii), (iii), (iv) and (v)

d.(i), (ii), (iii) and (iv)

6. Indicate what is not correct in respect of the Consumer Protection Act, 1986?

a.A complaint against medical negligence can be filed by legal heir or representative of the deceased.

b.A complaint involving a claim of Rs. 15 lakhs is to be filed before the State Commission.

c.No complaint can be entertained in respect of a product purchased more than 2 years back.

d.Both (A) and (C)

7. The rationale of expanding role of the public sector stems mainly from which of the following factors? (i) The failure of the private sector in certain crucial areas (ii) The exploitation of the society by the private sector (iii) The revenue need of the Central Government (iv) The demand of economic justice (v) The need for accelerating the pace of economic growth

a.(i), (iii), (iv) and (v)

b.(i), (ii), (iv) and (v)

c.(i), (ii), (iii) and (iv)

d.(ii), (iii), (iv) and (v)

8. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R): Assertion (A): Increasing the value of closing inventory increases profit. Reason (R): Increasing the value of closing inventory reduces cost of goods sold. In the context of the above two statements, which of the following is correct?

a.Both (A) and (R) are wrong.

b.Only (A) is correct.

c.Both (A) and (R) are correct.

d.Only (R) is correct.

9. The present value of the future contributions of employees is one of the methods of ______?

a.Inflation Accounting

b.HR Accounting

c.Social Accounting

d.Responsibility Accounting

10. If bonus shares are issued out of pre-acquisition profit, it will have _______?

a.Direct effect on the Consolidated Balance Sheet

b.No effect on Net Profit

c.No effect on the Consolidated Balance Sheet

d.None of the above

11. Which of the following is not regulated by The Competition Act, 2002?

a.Predatory pricing

b.Medical negligence

c.Abuse of dominant position

d.Anti-competitive agreements

12. Which of the following factors may lead to a sick industrial unit? (i) Shortage of funds and faulty financial management (ii) Investment by FIIs in Indian industries (iii) Unauthorized FDI in Indian industries (iv) Lack of experience on the part of promoters (v) Technological factors including obsolete or improper technology

a.(i), (ii), (iii) and (iv)

b.(i), (iv) and (v)

c.(ii), (iii), (iv) and (v)

d.(i), (ii) and (iii)

13. Assertion (A): The liability of the option buyer is limited in the currency options market. Reason (R): Option buyer need not exercise the option if the exchange rate is not favourable for him.

a.(A) is correct and (R) is wrong.

b.(R) is correct and (A) is wrong.

c.Both (A) and (R) are wrong.

d.Both (A) and (R) are correct.

14. A measure of the responsiveness of quantity demanded to changes in the price of a related good is known as _____?

a.Complementary Elasticity of Demand

b.Price Elasticity of Demand

c.Cross Elasticity of Demand

d.Substitution Elasticity of Demand

15. The important responsibilities of a business to the customers are (i) To ensure family welfare of the customers. (ii) To understand customer needs and to take the necessary measures to satisfy these needs. (iii) To ensure health condition of the customers. (iv) To ensure that the product supplied has no adverse effect on the customer. (v) To provide an opportunity for being heard and to redress genuine grievances.

a.(ii), (iii), (iv) and (v)

b.(i), (ii), (iii) and (iv)

c.(ii), (iv) and (v)

d.(i), (ii), (iii), (iv) and (v)

16. Optimal input combination to minimize the cost for a given output will be at the point where _____?

a.Isocost is tangent to Isoquant

b.MRTS between inputs is equal

c.Any movement from optimum point will lead to low level of output

d.All the above conditions are fulfilled.

17. Identify the one, from the following, which is not a type of disequilibrium in the balance of payments of a country?

a.Structural disequilibrium

b.Sectoral disequilibrium

c.Cyclical disequilibrium

d.Secular disequilibrium

18. If the total cost is Rs. 260 and the total variable cost is Rs. 60, what will be total fixed cost if output is (a) 100 units and (b) 200 units?

a.Rs. 160 and Rs. 100

b.Rs. 260 and Rs. 100

c.Rs. 100 and Rs. 200

d.Rs. 200 and Rs. 200

19. The participants who take advantage of different exchange rates in different markets are _____?

a.Speculators

b.Arbitrageurs

c.Investors

d.Hedgers

20. A standard which can be attained under the most favourable working conditions is called _______?

a.Current Standard

b.Ideal Standard

c.Attainable Standard

d.Basic Standard

Also See :

UGC NET Mock 14 on Commerce – 20 Questions for Practice

UGC NET Mock Test 14 on Commerce – 20 Questions for Practice

Take Test 14 20 questions for Practice – Commerce Test 14

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