cma foundation question paper with answers pdf (2024)

1. Money Bill is introduced in which House of the Parliament?

1. Council of People – Lok Sabha
2. Council of States – Rajya Sabha
3. Both the Houses
4. None of the Houses

Choice 'A' is correct as

The Money Bill is introduced in the Lok Sabha, which is the Council of the People and the lower house of the Indian Parliament.

As per Article 110 of the Constitution of India, a Money Bill can only be introduced in the Lok Sabha, and not in the Rajya Sabha (Council of States) which is the upper house of the Parliament. This is because the Lok Sabha is considered to be more representative of the people, as its members are directly elected by the citizens of India, while the members of the Rajya Sabha are indirectly elected by the elected members of the state legislative assemblies.

2. Consideration Contemplated under Indian Law is

1. Past Consideration Only
2. Present Consideration Only
3. Past, Present or Future Consideration
4. Monetary Consideration Only

Choice 'C' is correct as

Section 2(d) defines consideration as follows: "When at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing or promises to do or abstain from doing something, such an act or abstinence or promise is called consideration for the promise". Thus, the essential elements can be specified as follows:
(1) That is to say, consideration is the doing or not doing of something which the promisor desires to be done or not done.
(2) Consideration must be at the desire of the promisor.
(3) Consideration may move from promisee or any other person.
(4) Consideration may be past, present or future.
(5) Consideration need not be adequate, but should be real.

3. The Term Unpaid Seller includes

1. Agent of the Buyer
2. Agent of the Seller
3. Agent of the Carrier/Transporter
4. All of the Above

Choice 'B' is correct as

In the definition of unpaid seller the term "seller" includes any person who is in the position of a seller as for instance an agent of the seller to whom the bill of lading has been indorsed or a consignor or agent who has himself paid or is directly responsible for the price

4. An agreement will be unlawful if

1. There is no consent.
2. Consent is not free.
3. There is no consideration
4. The object is forbidden by law

Choice "D" is correctas

The limits to contractual freedom are set out in Section 23 of the Act. An agreement, the object or consideration of which is unlawful is void. The seven circ*mstances which would make consideration as well as an object unlawful are discussed below:
(i) Forbidden by law
(ii) Defeat of the provision of law
(iii) Defeat of any rule for the time being in force in India
(iv) Fraudulent
(v) Injury to the person or property of another
(vi) Immoral
(vii) Agreement opposed to public policy

5. Feedback is needed in which way communication

1. One-way
2. Two-way
3. Both a and b
4. None of the above

Choice 'B' is correct as

Feedback is an essential component of two-way communication, which is a type of communication in which there is an exchange of information between two parties (sender and receiver) and both parties are actively involved in the communication process. In two-way communication, feedback is the process of providing a response or reaction to the message that has been received. Feedback can take many forms, including verbal and nonverbal communication, and it is essential for ensuring that communication is effective and that the message has been accurately understood by the receiver. In contrast, one-way communication is a type of communication in which information flows in only one direction, from the sender to the receiver, without any opportunity for feedback or response.

6. What Are Personal Laws?

1. Laws relating to inter personal behaviour
2. Customs (religious beliefs) that have now been codified
3. Laws that a person makes
4. Laws based on opinion

Choice 'B' is correct as

Personal laws are a set of laws that are applicable to specific communities or religious groups based on their customs and beliefs. These laws deal with various aspects of personal life such as marriage, divorce, inheritance, and succession. In India, personal laws have their roots in religious and customary practices, and they have been codified over time to bring uniformity and clarity in their application.

7. Agreements between a husband and wife living in friendly environment are

1. Valid contracts
2. A void contracts
3. Domestic arrangements
4. Voidable contract

Choice "C" is correct as

The Indian Contract Act governs commercial contracts and legal enforceability, excluding familiar relationships between spouses. It recognizes these as domestic arrangements, not formal contracts, and may limit their legal enforceability. This aligns with the Act's focus on commercial dealings and family relationships.

8. A contract should be performed by

1. The Promisor
2. The Promisor’s Agent
3. Promisor’s legal representative
4. All of them

Choice "D" is correct as

The promise under a contract may be performed, as the circ*mstances may permit, by the promisor himself, or by his agent or his legal representative. Promise can also be performed by third persons or by joint promisors.

9. State which of the following statements is false

1. When a bill is drawn, accepted or endorsed for consideration, it is a fictitious bill.
2. A bill of exchange is an unconditional order
3. A cheque is always payable on demand
4. The negotiable instruments Act, 1881 is applicable to the while of India.

Choice "A" is correct as

When a bill is drawn, accepted or endorsed for consideration, it is a valid bill. Also all other statements are true.

10. Writing is _______________in nature?

1. Personal
2. Impersonal
3. Neutral
4. None of the above

Choice 'A' is correct as

Writing is personal in nature and it represents one’s true characteristics. As a result, it helps a person to connect with others

11. Secondary/Subordinate legislation cannot go beyond:

1. The ambit of the Act
2. The ambit of the Act or the Constitution of India
3. The Constitution of India
4. Directive Principles of State Policy

Choice 'B' is correct as

Secondary or sub-ordinate legislation, such as rules, regulations, and bylaws, must be made within the limits of the enabling Act or the Constitution of India. The Constitution of India provides for the separation of powers between the legislature, executive, and judiciary. The legislature enacts primary legislation, while the executive is responsible for implementing and enforcing the laws through secondary or sub-ordinate legislation. However, the executive cannot exceed its authority or violate the Constitution or the enabling Act while making such laws. If it does, the judiciary has the power to strike down such laws as unconstitutional or ultra vires.

12. If a party stands in a fiduciary relation to the other :

1. He cannot dominate
2. He can dominate the will of another
3. The trust should be maintained
4. None of these

Choice "B" is correct as

A fiduciary relationship involves a fiduciary oweing trust, loyalty, and confidence to another party, with the fiduciary holding authority. Hence they can dominate the will of the other.

13. The term 'price' has been defined in Section ______ of the sale of goods act,1930

1. 2(10)
2. 2(7)
3. 2(4)
4. 2(2)

Choice "A" is correct as

section 2(10) defines price as 'price' means the money consideration for a sale of goods.

14. Who among the following cannot cross a cheque?

1. Drawer
2. Holder
3. Banker
4. Foreigner

Choice 'D' is correct as

A cheque can be crossed by the drawer, the holder of the cheque or banker.

15. Method of delivering the message is known as _______________?

1. Receiver
2. Channel
3. Sender
4. Feedback

Choice 'B' is correct as

In communication, the channel refers to the method or medium used to deliver a message from a sender to a receiver. There are many different channels that can be used for communication

16. State which of the following statement is true:

1. Case Laws are judicial precedents
2. Any Elected Minister can pass an ordinance
3. There is no punishment for Contempt of Court
4. Only acts passed by the Parliament of India or State Legislature are the laws

Choice 'A' is correct as

All case laws are judicial precedent, also all other statements are false

17. Municipalities are provided for authority under which part of the Constitution of India?

1. Part IX
2. Part IX A
3. Part III
4. Part I

Choice 'B' is correct as

Part IXA of the Constitution of India deals with the constitution of municipalities. This part was added to the Constitution by the 74th Amendment Act of 1992, which provides for a three-tier system of urban local government in India, namely Nagar Panchayats for areas in transition from rural to urban, Municipal Councils for smaller urban areas, and Municipal Corporations for larger urban areas. Part IXA provides for the composition, powers, and functions of these municipalities, as well as for the devolution of powers and responsibilities to them by the state governments. The objective of Part IXA is to promote democratic and accountable local governance in urban areas.

18. Which one of the following statements is correct?

1. Void agreements are always illegal
2. Illegal agreements are voidable
3. Illegal agreement can be ratified by the parties
4. Illegal agreements are always voi

Choice "D" is correct as

According to the Indian Contract Act, illegal agreements are always void. If an agreement involves an unlawful object or consideration, or if it is expressly prohibited by law, it is deemed illegal and, as a consequence, void. The law does not recognize or enforce agreements that are illegal.

19. Which of the following statements is false?

1. Only Movable goods are subject matter of the Sale of Goods Act,1930.
2. Contract of sale creates right in personam.
3. Agreement of sale creates right in rem
4. Both (B) and (C)

Choice "D" is correct as

According to the Sales of Goods Act, Both B and C statements are false, as the contract of sale does not create rights in personam (a right against a specific person).. Instead, it creates a right in rem (a right against the world at large) and Agreement to sell does not create a right in rem (a right against the world at large). Instead, it creates a right in personam (a right against a specific person).

20. There are __________________ ingredients of offence under Sec.138 of the Negotiable Instrument Act, 1881.

1. Two
2. Three
3. Four
4. Five

Choice "D" is correct as

Five ingredients of the offence under Sec. 138 of the Negotiable Instruments Act, 1881

The offence under Sec. 138 of the Act can be attracted, given sufficient components of the said offence;

1. Drawing of the cheque,
2. Presentation of the cheque to the bank,
3. Returning the cheque unpaid by the drawee bank,
4. Giving notice in writing to the drawer of the cheque demanding payment of the cheque amount.
5. Failure of the drawer to make payment within 15 days of the receipt of the notice.

Upon such dishonour of an issued cheque, the payee can initiate legal proceedings under Section 138 of Negotiable Instruments Act, 1881.

21. Need of proper grammar and syntax comes under which C of communication?

1. Completeness
2. Coherence
3. Courteous
4. Correctness

Choice 'D' is correct as

The need for proper grammar and syntax comes under the "Correctness" C of communication. Correctness refers to the accuracy and precision of the message being communicated, including proper grammar, syntax, spelling, and punctuation. Communication that is free from errors and mistakes is more likely to be understood and taken seriously by the audience, which can help to build credibility and trust.

Correctness is essential in various forms of communication, including written and oral communication. In written communication, correctness involves using proper grammar, spelling, and punctuation to convey the message clearly and accurately. In oral communication, correctness involves using proper pronunciation, intonation, and syntax to ensure that the message is clearly understood by the audience.

22. The grace period for payment of a negotiable instrument other than payable on demand is_______days/months.

1. 7 days
2. 3 days
3. 1 month
4. 15 days

Choice " B " is correct as -

This indicates a grace period of 3 days for payment after the maturity of the negotiable instrument. However, it's crucial to note that such specifics may vary, and it is important to refer to the applicable laws and the terms mentioned in the negotiable instrument for accurate information. Always consult local regulations and legal experts for the most accurate and up-to-date information.

23. X contracted with Y to encroach upon property forcefully. This contract is

1. Valid
2. Void
3. Illegal
4. Violabe

Choice " B " is correct as -

According to Section 23 of the Act, the consideration or object of an agreement is unlawful if it involves committing fraud or any act that the law deems immoral or against public policy.

Specifically, Section 23 states that "The consideration or object of an agreement is lawful, unless— it is forbidden by law; or is of such a nature that, if permitted, it would defeat the provisions of any law; or is fraudulent; or involves or implies injury to the person or property of another; or the Court regards it as immoral, or opposed to public policy."

Given that the contract involves fraudulent encroachment on Z's property, it directly falls under the category of being fraudulent and involving injury to another's property. Consequently, the contract is void and unenforceable as per the Indian Contract Act, 1872.

24. Which of the following rights is/are available to an unpaid seller?

1. To resell the goods
2. To mortgage the goods
3. To consume the goods
4. All of the above

Choice " A " is correct as -

As per the Sale of Goods Act, 1930, an unpaid seller has rights against goods as well as rights against buyer. Among various rights against goods, he has the right ott resale if he is unpaid. There is no such right as right to mortgage of consume goods.

25. In a breach of conditions in a contract of sale, the buyer

1. cannot refuse to accept the goods
2. has to pay the price
3. can claim to accept the goods
4. can refuse to accept the goods

Choice " D " is correct as -

As per the Sale of Goods Act, 1930, in case of breach of conditions in a contract of sale, the buyer can refuse to accept the goods.

26. In which business communication, a speaker has to clearly speak for or against a topic?

1. presentation
2. Debate
3. speech
4. Group discussion

Choice " B " is correct as -

Debate is based usually on current affairs or situations where the speaker researches in depth about the topic and either speaks for or against the notion.

27. State which of the following relates to disadvantages of referencing:

1. It is the basis of research using secondary data.
2. Too much referencing can lead to lack of originality
3. It brings about rigidity in research and it is time consuming process
4. Both (B) and (C )

Choice " D " is correct as -

Referencing will help provide a trail to the original source document and act as supporting evidence to the report.

However, there are various disadvantages also of Referencing -

• References sometimes leads to misleading or inadequate information
• Sometimes the referencing styles and techniques might be complicated to understand and interpret.
• Too much referencing can lead to lack of originality.
• It brings about rigidity in research and is time consuming process

28. _____________ is commonly used to highlight certain important documents or matters of significance in a document.

1. Flowchart
2. Colour Printing
3. Tables and graphs
4. None of the above

Choice " B " is correct as -

Colour coding is commonly generally used to highlight certain important documents or matters of significance in a document. This is done by assigning colours. For example: Highlighted in red could mean matters requiring urgent attention and needs to be checked. Blue could mean matters of considerably lower significance and green means a desirable situation.

29. In FOB contract, property and risks passes on

1. shipment
2. Standing at the port of destination.
3. payment of the price
4. reaching the warehouse/godown of the buyer

Choice " A " is correct as -

F.O.B. contracts (Named port of shipment). F.O.B. stands for "free on board". If A of Delhi agrees to sell 100 tons of sugar, F.O.B. Mumbai, to B of Manchester, this would mean that A must put the goods on board a ship at Mumbai at his own expense under a contract of carriage by sea, to be made by or on behalf of the buyer, for the purpose of transmission to the buyer.

Seller's duties.: To deliver the goods on board the ship named by the buyer. When once the goods are put on board the ship, they are at the risk of the buyer. The duty of the seller ends when he delivers the goods at his own expense to the ship at the port of shipment [Colley v.Overseas Exporters, (1921) 3 K.B. 302]. Such delivery transfers the possession, property and risk to the buyer.

30. For which of these, rights of lien can not be exercised by an unpaid seller?

1. For dock charges
2. Godown rent
3. Warehousing charges
4. All of the above

Choice "D " is correct as -

According to section 47(1) an unpaid seller can exercise the right of lien in the following cases:

1. Where the goods have been sold without any stipulation as to credit.
2. Where the goods have been sold on credit, but the period of credit has expired.
3. Where the buyer becomes insolvent

Since, none of the case is provided in the options above, Option D is correct.

31. State which of the following statements is false:

1. The use of touch in communication is called Haptics.
2. Change of command means levels of authority
3. A social media post is a written type of communication.
4. Advertising is derived from Latin word “Venalicium”

Choice " D " is correct as -

Advertising is derived from a Latin word ‘Advertere’ which means ‘turn the minds of someone towards something.

32. Which of the following is not an advantage of formal communication?

1. Reliable
2. Fast
3. Secrecy
4. None of the above

Choice 'B' is correct as

It is slower than informal communication because it is time consuming to follow communication through a long chain of command. Thus, it is not as fast as informal communication

33. At the end of the day, who needs to be satisfied?

1. Company
2. Customers
3. Suppliers
4. None of the above

Choice 'B' is correct as

While all stakeholders (including the company, customers, and suppliers) are important, customer satisfaction is typically paramount because satisfied customers drive the success and sustainability of a business. Without satisfied customers, a company cannot generate revenue, maintain profitability, or grow. Hence, many business philosophies and strategies prioritize customer satisfaction as the key to achieving overall success.

34. Select the odd one:

1. Estoppel
2. Sale by Merchant Agent
3. Sale by Power of Attorney Holder
4. Sale by Joint Owner

Choice 'A' is correct as

The odd one out is Estoppel.

• Sale by Merchant Agent, Sale by Power of Attorney Holder, and Sale by Joint Owner all pertain to different types of sales transactions involving property or goods.
• Estoppel is a legal principle that prevents someone from arguing something contrary to a claim made or implied by their previous words or actions. It does not specifically relate to the sale of goods or property.

Thus, Estoppel is conceptually different from the other options, which are all specific types of sales.

35. Auctioner’s tactics to raise the prices artificially is known as

1. Pretended Bidding
2. Manipulated Bidding
3. Inflated Bidding
4. Rigged Bidding

Choice 'A' is correct as

Auctioneer’s tactics to raise the prices artificially is known as Pretended Bidding.

36. Select the odd one:

1. Nominal damages
2. Special damages
3. Exemplary damages
4. Symbolic damages

Choice 'B' is correct as

The odd one out is Special damages.

Here's the reasoning:

Nominal damages, Exemplary damages, and Symbolic damages are all types of damages that are not primarily compensatory.

Nominal damages are a small sum awarded where a legal wrong occurred but did not result in significant loss or injury.

Exemplary damages (also known as punitive damages) are intended to punish the defendant and deter future similar conduct.

Symbolic damages are akin to nominal damages, representing a token amount awarded to acknowledge that a legal right has been violated.

Special damages, on the other hand, are a type of compensatory damages awarded for specific, quantifiable losses that resulted directly from the defendant's actions, such as medical expenses, lost earnings, and property repair costs.

37. General offer can be accepted by

1. only senior citizens
2. any person competent to contract
3. the person indicated therein
4. None of them

Choice 'B' is correct as

A general offer is an offer made to the public at large and can be accepted by anyone who meets the conditions of the offer and is legally capable of entering into a contract.

38. Remission of contract means

1. Termination of Contract
2. Lapse of a Contract
3. Discharge of a Contract
4. All of the above

Choice 'B' is correct as

A contract is also discharged by rescission. When the parties to a contract agree to rescind it, the contract need not be performed.

39. Quasi-Contractual obligations are also called as

1. Contractual obligations
2. Moral Obligations
3. Extra Contractual obligations
4. Certain relations resembling those created by contract

Choice 'D' is correct as

Quasi-Contractual obligations are termed under English Law and “ Certain relations resembling those created by contract” under Indian Law.

40. Consensus ad-idem means

1. meeting of the mind
2. legality of objects
3. illegality of considerations
4. capacity to contract

Choice 'A' is correct as

Consensus ad idem/Meeting of Minds: The essence of agreement or in turn contract is meeting of mind of the parties. The parties to an agreement must have agreed upon the subject in the same sense and at the same time. Unless there is consensus ad idem, there cannot be any contract.

41. Cheque is a

1. promissory note
2. bill of exchange
3. both(a) and (b) above
4. None of the above

Choice 'B' is correct as

A cheque is a type of bill of exchange. A cheque is a financial instrument that is used to transfer money from one bank account to another. It is a written order by the drawer (the person or entity issuing the cheque) to the drawee (the bank) to pay a specified amount of money to the payee (the person or entity to whom the cheque is payable).

42. If the words “not negotiable” are used with special crossing in a cheque, the cheque is---

1. not transferable
2. transferable
3. negotiable under certain circ*mstances
4. none of the above.

Choice 'A' is correct as

If the words "not negotiable" are used with a special crossing in a cheque, it means that the cheque can only be paid into the account of the payee mentioned in the cheque and cannot be further negotiated to any other party.

43. How many parties are involved in a Bill of Exchange

1. 2
2. 3
3. 4
4. 1

Choice 'B' is correct as

There are three parties involved in a Bill of Exchange:

1. Drawer: the person who issues the bill and orders the payment
2. Drawee: the person on whom the bill is drawn and who is directed to pay
3. Payee: the person to whom the payment is to be made

44. Which of the following should be avoided in the group discussion?

1. Positive body language
2. Leadership initiative
3. false statements
4. confidence

Choice 'C' is correct as

Rules to be followed for an effective Group Discussion

• Be clear, confident and to the point about your content
• Prepare the topic for the discussion well
• Introduce yourself before you present your content / views / opinion
• Display a positive body language and attitude
• Avoid making vague or false statements
• Do not put on a casual attitude
• Do not argue with someone you disagree with
• Follow your domain
• Try to take a leadership initiative within the group

45. _______ parties are involved in an cheque

1. 2
2. 3
3. 4
4. None of the above

Choice 'B' is correct as

Parties: There are three parties to Cheque:

1. The drawer.
2. The drawee.
3. The payee.

1.The drawer: The customer who signs the cheque is called “drawer”.

2. The drawee: The bank on whom the cheque is drawn is called “drawee”.

3. The Payee: The person to whom the payment is to be made is called the payee.

46. If an instrument may be construed either as a promissory note or bill of exchange, it is

1. a valid instrument
2. an ambiguous instrument
3. a returnable instrument
4. none of the above

Choice 'B' is correct as

An instrument that can be construed as either a promissory note or bill of exchange is referred to as an ambiguous instrument. The Negotiable Instruments Act, of 1881 provides specific definitions for promissory notes and bills of exchange, and an instrument that does not clearly fit into either category may be considered ambiguous.

47. The term “a cheque in the electronic form” is defined in the Negotiable Instruments Act, 1881 - under

1. Section 6(a)
2. Section 6(1)(a)
3. Explanation 1(a) of Section 6
4. Section 6A.

Choice 'C' is correct as

Explanation 1 to Section 6 of the Act was amended to include an electronic image of a truncated cheque and a cheque in the electronic form. The definition of a truncated cheque was also amended to include an electronic image of a truncated cheque.

48. A Corporation can be party to a Negotiable Instrument if—

1. authorized by its article of association
2. if special permission of Board of Directors taken
3. if special resolution by Shareholders is passed
4. absolutely without any restrictions

Choice 'A' is correct as

A corporation or company can be a party to a negotiable instrument, such as a promissory note, bill of exchange, or cheque, if it is authorized to do so by its articles of association or bylaws.

49. A contract by a minor is voidable under the

1. Indian Contract Act
2. English Law
3. Hindu Law
4. Common Law

Choice 'B' is correct as

Under the Indian Contract Act, a contract by a minor is not voidable but void ab initio (void from the beginning). This means that such a contract is not valid from the outset and cannot be enforced against the minor.

Under English Law, a contract by a minor is typically voidable at the minor's option, meaning the minor can choose to either affirm or void the contract upon reaching the age of majority.

Therefore, the correct answer for a contract by a minor being voidable is: English Law.

50. A Contract can be avoidable due to

1. Mistake of law foreign country
2. Mistake of law of own country
3. both (a) and (b)
4. None of above

Choice 'A' is correct as

A contract can be voidable due to Mistake of law of a foreign country.

In contract law, a mistake of law of one's own country is generally not considered a valid ground to void a contract. However, a mistake regarding the law of a foreign country can be treated similarly to a mistake of fact, which may make the contract voidable under certain circ*mstances.

Therefore, the correct answer is:

Mistakes of law of foreign country.

Paper 2 -Financial and Cost Accounting(FFCA)

51. The economic life of an entity is artificially split into small equal time intervals in accordance with concept

1. going concern
2. matching
3. dual aspect
4. periodicity

Choice 'D' is correct as

Periodicity concept states that the ongoing life of a business is divided into discrete and uniform periods, such as months, quarters, or years, for the purpose of financial reporting.

By breaking down the continuous life of a business into smaller intervals, it allows for regular and consistent financial reporting, making it easier for stakeholders to assess the performance and financial position of the business at regular intervals.

52. Which of the following is not a framework of accounting?

1. Conceptual
2. Legal
3. Social
4. Institutional

Choice 'C' is correct as

The frameworks of accounting typically include the following:

• Conceptual Framework
• Legal Framework
• Institutional Framework
• Economic Framework

53. Which component of financial statements directly represents the Accounting Equation?

1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
4. None of the above

Choice 'B' is correct as

Explanation:

• The Accounting Equation is Assets = Liabilities + Equity.
• The Balance Sheet presents a snapshot of an entity's financial position at a specific point in time.
• It lists assets, liabilities, and equity, thereby directly reflecting the Accounting Equation.

54. Which of the following is not a column in the triple column cash book?

1. Cash column
2. Bank column
3. Discount column
4. Pesty cash column

Choice 'D' is correct as

The triple column cash book typically includes three main columns:

1. Cash column: This column records all transactions involving cash receipts and payments.
2. Bank column: This column records transactions related to bank receipts and payments.
3. Discount column: This column is used to record any discounts given or received on transactions.

55. A cheque issued to a party of ₹ 44,800 was recorded twice in the Cash Book. How should it be treated while drafting Bank Reconciliation Statement, if the balance as per Cash Book is the starting point?

1. ₹ 44,800 is to be deducted
2. ₹ 89,600 is to be added
3. ₹ 44,800 is to be added
4. ₹ 89,600 is to be deducted

Choice 'A' is correct as

When drafting a Bank Reconciliation Statement (BRS), the treatment of a cheque issued but recorded twice in the Cash Book involves adjusting the Cash Book balance to reconcile it with the bank statement balance.

Given:

• Cheque issued and recorded twice in Cash Book: ₹44,800

Steps to adjust the Cash Book balance (starting point of BRS):

1. Identify the error: The cheque issued and recorded twice means there is an overstatement of payments in the Cash Book by ₹44,800.
2. Adjustment required: Since the Cash Book balance needs to be corrected to match the actual bank balance, which would only reflect this cheque once (as it's a single transaction), you need to subtract the duplicate entry from the Cash Book balance.
3. Correct adjustment: Therefore, you should deduct ₹44,800 from the Cash Book balance to reflect the correct position.

Therefore ,(A) ₹44,800 is to be deducted

This adjustment ensures that the Cash Book balance, after correction, matches the actual bank balance as per the bank statement, which is the ultimate goal of preparing the Bank Reconciliation Statement.

56. Which of the following is true about Trial Balance?

1. It is a part of books of accounts.
2. It is a list of ledger balances.
3. It is a part of financial statements.
4. None of the above

Choice 'B' is correct as

Trial Balance: A Trial Balance is a list of all the general ledger account balances of a company at a specific point in time. It includes the balances of all ledger accounts, both debit and credit, and serves as a preliminary check to ensure that the total of all debit balances equals the total of all credit balances.

57. ₹ 47,000 paid for installation of new machinery in the factory should be debited to Account

1. Machinery
2. Installation Expenses
3. Repairs
4. Factory

Choice 'A' is correct as

Installation expenses increase the value of the machinery being installed. Since these expenses are directly related to putting the asset into service, they are capitalized and added to the cost of the asset.

58. Recovery of bad debts

1. increases gross profit.
2. increases net profit.
3. decreases net profit.
4. decreases gross profit.

Choice 'B' is correct as

The recovery of bad debts is recorded as other income or a reduction in bad debt expense on the income statement.

This increases the net income or net profit for the period because the recovered amount is added to the company's revenue.

59. Under which method, depreciation calculated on Original Cost of fixed asset?

1. Fixed installment method
2. Production units method
3. Depletion method
4. Reducing balance method

Choice 'A' is correct as

Under the Fixed installment method, depreciation is calculated based on a fixed amount or percentage of the original cost of the asset.

60. Goods costing ₹ 1,25,000 taken for domestic use by proprietor were credited to sales Account. While posing a rectification entry _____ Account is to be debited and ______ Account is to be credited.

1. Advertisem*nt; Purchases
2. Drawings; Purchases
3. Sales; Purchases
4. Sales; Suspense

Choice 'D' is correct as

The rectification entry required for the situation where goods costing ₹1,25,000 taken for domestic use by the proprietor were incorrectly credited to the Sales Account should be:

(D) Sales Account should be debited and Suspense Account (or Drawings Account) should be credited.

Here’s the rationale behind this rectification entry:

Debit Sales Account: This corrects the overstatement of sales due to the goods taken for domestic use being wrongly credited to the Sales Account initially.

Credit Suspense Account (or Drawings Account): The Suspense Account is used temporarily to hold amounts that need further investigation or correction. In this case, since the goods were taken for personal use by the proprietor, it should ideally be credited to the Drawings Account to reflect the proprietor's personal withdrawal of goods.

Therefore, the correct rectification entry is option (D) Sales; Suspense.

61. In a consignment, the Proforma Invoice is sent by____.

1. Consignee
2. Consignor
3. Customer
4. Banker

Choice 'B' is correct as

When the goods are sent by consignor to the consignee, consignor sends a ‘Proforma Invoice’ in the form of an invoice to the consignee

62. Anil draws a bill worth 60,000 on Vijay on March 1, 2024 for 30 days after dale'. On which date will the bill mature, given that it was accepted on March 7, 2024?

1. March 31, 2024
2. April 1, 2024
3. April 3, 2024
4. April 10, 2024

Choice 'C' is correct as

Here’s how we calculate it:

1. Date of Bill Issuance: March 1, 2024
2. Accepted Date: March 7, 2024

Since the bill is drawn for "30 days after date", we count 30 days from March 1, 2024 (excluding the date of the bill itself).

• March 1 (Bill Date) + 30 days = March 31, 2024
• Add 3 Days for Grace Period

Therefore, the bill will mature on April 3, 2024.

63. On honour of a Bill of Exchange at maturity, no journal entry is required to be passed in the books of the drawer when

1. bill is retained till maturity.
2. bill is sent for collection.
3. bill is endorsed.
4. All of the above

Choice 'A' is correct as

If the drawer retains the bill until maturity and the drawee (the party who accepted the bill) pays the amount on the maturity date, there is no need for any journal entry in the books of the drawer.

The drawer simply receives the payment from the drawee, and no additional accounting entry is required because the liability represented by the bill is settled.

64. What will be the accounting for goods purchased for joint venture by co-venturer in e separate set of books are maintained?

1. Debit: Goods A/c;
   Credit: Co-Venturer's A/c
2. Debit: Joint Venture A/c;
   Credit: Joint Bank A/c
3. Debit: Co-Venturers A/c Credit;
   Joint Venture A/c
4. Debit: Joint Venture A/c;
   Credit: Co-Venturer's A/c

Choice 'D' is correct as

The correct accounting treatment for goods purchased for a joint venture by a co-venturer, when separate sets of books are maintained, is:

(D) Debit: Joint Venture Account; Credit: Co-Venturer's Account

Here's the rationale behind this accounting entry:

• Debit to Joint Venture Account: This account records all transactions related to the joint venture itself. When goods are purchased for the joint venture, the Joint Venture Account is debited to reflect an increase in the assets (goods purchased) of the joint venture.
• Credit to Co-Venturer's Account: This account represents the co-venturer's interest in the joint venture. By crediting the Co-Venturer's Account, we acknowledge that the co-venturer has a liability or owes the joint venture for their share of the goods purchased.

This entry ensures that the transaction is correctly recorded in the books of the joint venture, reflecting both the assets acquired (goods) and the corresponding liability (co-venturer's share) in the joint venture.

Therefore, the correct answer is (D) Debit: Joint Venture Account; Credit: Co-Venturer's Account.

65. Akash purchased goods costing ₹ 10,00,000, Vikash sold 4/5th of the goods for ₹ 12,50,000. Balance of the goods were taken- over by Vikash at cost less 20%. If same sets of books are maintained, determine the profit on venture.

1. ₹4,10,000
2. ₹2,50,000
3. ₹4,50,000
4. ₹5,00,000

66. In Memorandum Joint Venture accounting method, each co-venturer records

1. all transactions of joint venture.
2. common transactions of joint venture
3. her his respective transactions of the joint venture.
4. transactions of the co-venturer.

Choice 'C' is correct as

In Memorandum Joint Venture accounting method Each co-venturer maintains their own books of accounts. They record only their own transactions related to the joint venture in their respective books.

67. Which of the following is not a component of a financial statement of a trading sole proprietorship business concern?

1. Balance Sheet
2. Profit & Loss A/c
3. Profit & Loss Appropriation A/c
4. Trading A/c

Choice 'C' is correct as

Profit & Loss Appropriation A/c is not a standard component of the financial statements of a trading sole proprietorship business concern. It is used in companies or partnerships to allocate and distribute profits among partners or shareholders after calculating net profit in the Profit & Loss A/c.

68. What is the purpose of drafting a Manufacturing Account?

1. Ascertaining cost on goods manufactured
2. Ascertaining profit/loss of goods manufactured
3. Ascertaining sale proceeds of goods sold

4. Both (A) and (B)

Choice 'A' is correct as

This is prepared only by a manufacturing organisation. It is prepared to determine the cost of goods manufactured.

69. While drafting financial statements, "Goods distributed as free samples but not yet accounted for in the books is to be reflected in which of the component(s)?

1. Only in Trading A/c
2. Only in Profit & Loss A/c
3. Both in Trading A/c and Balance Sheet
4. Both in Trading A/c and Profit & Loss Alc

Choice 'D' is correct as

Goods distributed as free samples impact both the Trading Account and the Profit & Loss Account:

• Trading Account: Deducts the cost of free samples from purchases or COGS to calculate accurate COGS and gross profit.
• Profit & Loss Account: Includes the cost of free samples as an expense to determine net profit or loss.

70. Outstanding Wages appearing in Trial Balance is reflected in

1. Trading A/c (Debit-side)
2. Profit & Loss A/c (Debit-side)
3. Balance Sheet (under Liabilities)
4. Profit & Loss Appropriation A/c (Debit-side)

Choice 'C' is correct as

Outstanding wages are recorded as a liability in the Trial Balance and subsequently appear on the Balance Sheet (under liabilities). This reflects the business's obligation to pay these wages in the near future and provides stakeholders with a clear view of the business's financial obligations.

71. In Ram's stationery business for the year 2023-24: Value of opening stock-in-trade is ₹ 4,00,000, Sales during the year is ₹ 20,00,000, Rate of Gross Profit is 25% on Cost and Purchases is 24,00,000, What is the value of closing stock-in-trade?

1. ₹ 12,00,000
2. ₹ 14,00,000
3. ₹ 8,00,000
4. ₹ 15,000,000

Choice 'C' is correct as

Given:

• Opening stock-in-trade: ₹4,00,000
• Sales during the year: ₹20,00,000
• Rate of Gross Profit is 25% on Cost
• Purchases during the year: ₹24,00,000

First, calculate the Cost of Goods Sold (COGS):

COGS=Opening stock+Purchases−Closing stock

Calculate the Gross Profit based on the Gross Profit percentage on Cost:

Gross Profit=Sales×Rate of Gross Profit​/100

Gross Profit=₹20,00,000×25​/100

Gross Profit=₹5,00,000

Now, calculate the Cost of Goods Sold (COGS):

COGS=Opening stock+Purchases−Closing stock

COGS=₹4,00,000+₹24,00,000−Closing stock

COGS=₹28,00,000−Closing stock

Since Gross Profit is 25% of Cost, we know:

Gross Profit=0.25×Cost

Therefore,

₹5,00,000=0.25×Cost

Cost=₹5,00,000​/0.25

Cost=₹20,00,000

Now substitute the Cost into the COGS equation to find the Closing Stock:

₹28,00,000−Closing stock=₹20,00,000

Closing stock=₹28,00,000−₹20,00,000

Closing stock=₹8,00,000

Therefore, the value of closing stock-in-trade is ₹8,00,000 (Option C).

72. Trade Mark is a

1. Fixed Tangible Asset
2. Fixed Intangible Asset
3. Current Asset
4. Fictitious Asset

Choice 'B' is correct as

A Trade Mark is an intangible asset that represents the distinctive identity or brand of a business. It lacks physical substance and cannot be touched or seen. Therefore, it is classified under fixed intangible assets

73. Madhu's Trial Balance as at March 31, 2024 contains the following information: 12% Bank loan (since July 1, 2022) ₹ 2,00,000: Interest paid ₹ 20,000. What will be total amount of Interest debited to Profit & Lom A/c for the year 2023-24?

1. ₹ 2,20,000
2. ₹ 4,000
3. ₹ 20,000
4. ₹ 24,000

Choice 'D' is correct as

Amount of Interest = ₹ 2,00,000 * 12% (Loan is outstanding for the entire year)

= ₹ 24,000

74. Subscription of a social club for the year 2023-24 appearing in Income & Expenditure A/c is ₹ 87,000. Ascertain the amount of Subscription received during the year, gives the following details:
Arrear Subscription: On March 31, 2023 ₹ 10,000 and March 31, 2024 ₹ 12,000 Advance Subscription: On March 31, 2023 ₹ 11,000 and March 31, 2024 ₹ 8,000-

1. ₹ 84,000
2. ₹ 82,000
3. ₹ 92,000
4. ₹ 90,000

75. Income & Expenditure A/c of a non-profit organisation is by nature-

1. Nominal Account
2. Real Account
3. Personal Account
4. Fictitious Account

Choice 'A' is correct as

Income & Expenditure Account of a non-profit organization is prepared to ascertain the surplus or deficit for a specific period, typically a year. It is categorized as a nominal account

76. When Life Membership Fee is treated as a capital receipt, its

1. entire amount is credited to Income & Expenditure A/c.
2. entire amount is recorded at payments in Receipts & Payments A/c
3. entire amount is added to the Capital Fund in the Balance Sheet.
4. None of the above

77. Provision for discount on debtors is ted only on

1. Insolvent debtors
2. Totul debtors
3. Bad and Doubtful debtors
4. Total debtors after providing provision for bad debts

Choice 'D' is correct as

Provision for discount on debtors is created on the balance of total debtors after providing for the provision for bad debts. This ensures that the provision for discounts is calculated on the net amount of debtors expected to pay, after accounting for potential bad debts that may not be recovered.

Therefore, the correct answer is (D) Total debtors after providing provision for bad debts.

78.Jaggu purchased goods of ₹ 80,000 for cash at 10% trade discount and 5% cash discount. purchase account is to be debited by

1. ₹ 72,000
2. ₹ 80,000
3. ₹76,000
4. ₹ 68,000

79. Goods purchased from Lokesh Ltd.. but wrongly entered in the sales return book. after rectification of error the result will be

1. increase in gross profit.
2. decrease in gross profit.
3. no effect on gross profit.
4. increase in net profit.

Choice 'B' is correct as

When goods purchased from Lokesh Ltd. are wrongly entered in the sales return book (assuming it should have been recorded as purchases), correcting this error will decrease the cost of goods sold (COGS) and therefore decrease the gross profit.

Here’s why:

• Originally, the goods were wrongly recorded as sales returns, reducing sales but not affecting COGS.
• When corrected, these goods should be correctly recorded as purchases, which will increase the COGS and decrease the gross profit.

Therefore, the correction of this error will result in a decrease in gross profit (option B).

80. Software A/c is a

1. Personal Account
2. Intangible Real Account
3. Nominal Account
4. Tangible Real Account

Choice 'B' is correct as

Software Account is classified as an Intangible Real Account. It falls under this category because it represents an intangible asset that has enduring value and is used for generating revenue over multiple accounting periods.

81. Which one of the following accounts is not opened in the books of the consignor?

1. Consignment Account
2. Commission Account
3. Goods sent on Consignment Account
4. Consignee's Personal Account

Choice 'B' is correct as

Commission Account is not opened in the books of the consignor.

The consignor generally maintains the following accounts:

(i)Consignment Account (to know the profit or loss on consignment)

(ii)Consignee Account (to know the amount due from consignee)

(iii) Goods Sent on Consignment Account (to adjust the goods sold on consignment from the main business).

82. Which one of the following statements is true?

1. Joint venture follows the going concern concept.
2. Accounting is concerned with both monetary and non-monetary transactions.
3. Comparability is one of the accounting concepts.
4. Financial statements are part of Accounting.

Choice 'B' is correct as

Financial statements are part of Accounting.

83. The manager is entitled to a commission of 2% on profits after deducting this commission. If the profits before charging such commission as well as interest on capital of₹ 6,000 are ₹ 1,08,000, then manager's commission will be

1. ₹ 2,160
2. ₹ 2,000
3. ₹ 2,040
4. ₹ 2,280

Choice 'C' is correct as

Profits before charging commission and interest on capital: ₹1,08,000

Interest on capital: ₹6,000

Commission rate: 2% on profits after deducting commission

First, calculate the profits after deducting interest on capital:

Profit after interest=Profits before commission−Interest on capital

Profit after interest=₹1,08,000−₹6,000

Profit after interest=₹1,02,000

Next, calculate the manager's commission on this profit:

Manager’s commission=2/100​×Profit after interest

Manager’s commission=2​/100×₹1,02,000

Manager’s commission=₹2,040

Therefore, the manager's commission is ₹2,040.

84. Subscription received during the year ₹ 70,000 subscription outstanding at the beginning of the year ₹ 7,000. Income from subscription was shown as ₹ 75,000. What amount will be shown as subscription outstanding at the end of the
year?

1. ₹ 12,000
2. ₹ 7,000
3. ₹ 5,000
4. ₹ 10,000

85. Bank balance as per Pass Book (credit) ₹ 25,000. Cheque issued worth ₹ 9,090, but recorded in cash book as ₹ 9,900. Find the hank balance as per cash book.

1. Cash book (Dr) ₹ 15,100
2. Cash book (Cr) ₹ 15,100
3. Cash bock (Dr) ₹ 24,190
4. Cash book (Cr) ₹ 24,190

Choice 'C' is correct as

Bank balance as per Pass Book (credit): ₹25,000

Cheque issued: ₹9,090 (but recorded in cash book as ₹9,900)

First, correct the recording error in the cash book:

The cheque issued was recorded ₹9,900 instead of ₹9,090. This means there is an excess amount of ₹810 in the cash book (₹9,900 - ₹9,090).

Now, adjust the bank balance in the cash book:

Bank balance as per cash book=Bank balance as per Pass Book−

Excess amount in cash book

Bank balance as per cash book=₹25,000−₹810

Bank balance as per cash book=₹24,190

Therefore, the bank balance as per the cash book is ₹24,190.

The correct option based on this calculation is: (C) Cash book (Dr) ₹ 24,190

86. CAS 6 deals with

1. Material Cost
2. Employee Cost
3. Overticada
4. Pollution Control Cost

Choice 'C' is correct as ( doubt)

CAS 6 (Cost Audit Report) primarily focuses on the reporting requirements related to overhead costs in the context of cost audit of companies. It specifies the format and contents of the Cost Audit Report that a cost auditor needs to prepare after conducting a cost audit.

87. Which of the following is not a cost unit applicable for the services sector?

1. Passenger- Km
2. Toune-Km
3. Room-Day
4. Cubic-feet

Choice 'D' is correct as

Cubic-feet is not a cost unit applicable for the services sector

88. Which method of costing is appropriate for the readymade garments industry?

1. Process Costing
2. Batch Costing
3. Multiple Costing
4. Contract Costing

Choice 'B' is correct as

Batch Costing is appropriate for the readymade garments industry.

Batch Costing is used in those firms where productions are made on a continuous basis. Each unit coming out is uniform in all respects and production is made prior to the demand.

89. The appropriate cost unit for_______ is ‘Chargeable Hours‘.

1. Power House
2. Hotel
3. Hospital
4. Audit Firm

Choice 'D' is correct as

'Chargeable Hours' is a commonly used cost unit in audit firms. It refers to the hours that auditors can charge to clients for their services. This metric is crucial in determining revenue and profitability in audit firms, where services are often billed based on the time spent on audits, consultations, and other client-related tasks.

90. The method of costing applicable for Hospitals is _______ Costing

1. Operating
2. Single/Output
3. Contract
4. Batch

Choice 'A' is correct as

Operating costing is the method applicable for hospitals. It is a type of process costing where costs are accumulated and allocated to each patient or department based on the services provided. This method is suitable for healthcare settings like hospitals where services are continuous and diverse, and costs need to be allocated to different patients or departments based on their usage of services and resources.

91. GACAP stands for

1. Generally Accepted Cost Auditing Principles
2. Generally Accepted Cost Accounting Principles
3. Generally Accepted Cost Accountancy Practices
4. Generally Accepted Cost Accounting Procedures

Choice 'B' is correct as

Generally Accepted Cost Accounting Principles

92. Calculate the amount of Factory revenue given that: Prime Cost is 6,50,000, Work Cost is 200% of Prime Cost, Depreciation of Plant is ₹ 2,50,000 and Power & fuel is ₹ 1,70,000

1. ₹ 5,20,000
2. ₹ 2,80,000
3. ₹ 2,30,000
4. ₹ 3,20,000

93. Which of the following item(s) is/are not included in the Cost Sheet?

1. Donations
2. Collection expenses
3. Audit fees
4. All of the above

Choice 'D' is correct as

Donations, collection expenses, and audit fees are not typically included in a Cost Sheet. Cost Sheets are used to summarize the costs incurred in the production of goods or services, focusing on direct and indirect costs related to production activities. Expenses like donations (which are usually unrelated to production), collection expenses, and audit fees (which are generally administrative expenses) are not considered part of the costs directly attributable to production and therefore would not be included in a Cost Sheet.

94. ____________ is an example of Direct Expenses in book publication.

1. Cost of paper
2. Wages of printing staff
3. Royalty to author
4. None of the above

Choice 'A' is correct as

Direct expenses in book publication refer to costs that can be directly traced to the production of specific books. The cost of paper is a direct expense because it directly contributes to the production of the books themselves. Wages of printing staff (option B) would typically be considered indirect expenses or factory overheads. Royalty to authors (option C) is also an indirect expense related to the sale or distribution of the books, not directly tied to their production. Therefore, among the options given, the cost of paper (option A) is the example of a direct expense in book publication.

95. Given that: Value of Raw Material consumed is ₹ 2,00,000, Raw Material purchased is ₹ 1,50,000 and Closing Stock Raw Materials is ₹ 80,000, calculate the value of Opening Stock of Raw Materials.

1. ₹ 4,30,000
2. ₹ 30,000
3. ₹ 2,70,000
4. ₹ 1,30,000

Choice 'D' is correct as

To calculate the value of Opening Stock of Raw Materials, we can use the formula for Raw Material Consumed:

Raw Material Consumed=Opening Stock of Raw Materials+Raw Material Purchased−Closing Stock of Raw Materials

Given:

Raw Material Consumed = ₹2,00,000

Raw Material Purchased = ₹1,50,000

Closing Stock of Raw Materials = ₹80,000

Let's denote the Opening Stock of Raw Materials as X.

Substitute the given values into the formula:

2,00,000=X+1,50,000−80,000

Now, solve for X:

2,00,000=X+70,000

X=2,00,000−70,000

X=₹1,30,000

Therefore, the value of the Opening Stock of Raw Materials is ₹1,30,000.

So, the correct answer is (D) ₹1,30,000.

96. ________ Costing is the adoption of identical costing principles and procedures.

1. Marginal
2. Uniform
3. Standard
4. Direct

Choice 'B' is correct as

Uniform costing the adoption of identical costing principles and procedures by several units of the same industry or several undertakings by mutual agreement. It facilitates valid comparisons between organizations and helps in elimination of inefficiencies.

97. Which one is False?

1. Tender is an estimation of selling price.
2. Rent on own building is imputed cost.
3. Fixed cost per unit increase with the increase of output.
4. Out of pocket costs involve payment to an outsider.

Choice 'C' is correct as

Fixed costs per unit decrease with an increase in output because fixed costs remain constant in total regardless of the level of production. Therefore, as more units are produced, the fixed cost is spread over a larger number of units, leading to a decrease in fixed cost per unit.

98. Costs are classified into material costs, employees' costs and expenses, it is known as

1. Functional Classification.
2. Element-wise Classification.
3. Behavioral Classification.
4. Classification according to controllability.

Choice 'A' is correct as

Functional classification categorizes costs based on the functions or activities within an organization to which they relate. In this classification:

• Material costs pertain to costs related to raw materials and components used in production.
• Employees' costs include wages, salaries, and benefits paid to employees.
• Expenses encompass various operating expenses incurred in the course of business operations.

Therefore, (A) Functional Classification is the correct answer.

99. Wages for abnormal idle time are charged to

1. Abnormal Overhead
2. Costing Profit & Loss Account
3. Production Cost
4. Job Cost

100. Which of the following items are not included in the Cost Sheet?

1. Cash Discount
2. Bank Interest
3. Donations to employees club
4. All of the above

Choice 'D' is correct as

Cash discount, bank interest, and donations to employees' clubs are not typically included in the Cost Sheet. The Cost Sheet focuses on summarizing the costs related to production activities and does not include financial items like discounts, interest payments, or donations, which are unrelated to production costs. Therefore, the correct answer is (D) All of the above.

Paper 3 : Business Mathematics and Statistics(FBMS)

101. In 30 litres of adulterated milk, the ratio of the volumes of milk and water is 7 : 3. What volume of water should be added to it to make the ratio of milk and water 3 : 7 ?

1. 20
2. 40
3. 25
4. 30

Choice 'B' is correct as

The quantity of mixture =30ltr

Milk : Water = 7:3

Milk = 30 x 7/10 = 21ltr

Water = 30x3/10 = 9ltr

milk : water = 3:7

21 - 9 + x

21/9 + x = 3x / 7

21 x 7 = 3(9 + x)

147 = 27 + 3x

x = 40 ltr

102.The mean proportional between 2 and 8 is

1. 4
2. 5
3. 3
4. 6

Choice 'A' is correct as

mean = √2x8

= 4

103. p varies directly with the cube root of q and p is 4 when the value of q is 8.Find the value of (q + 1) when the value of p is 6 .

1. 25
2. 28
3. 32
4. 36

Choice 'B' is correct as

P = 3√q , p = 4 , q = 8

4 = 3√8

4:2

2:1 ratio

when P = 6

6 - 3√q

2:1

6x1 = 3√q x 2

6/2 = 3√q

q =27

value of (q + 1) = 27+1

=28

104. If the interest rate is 6% p.a., for what sum of money (in xQ will the difference between compound interest and simple interest for 2 years is T 13.5 ?

1. 5730
2. 5370
3. 3750
4. 3570

Choice 'C' is correct as

difference between CI & SI for 2 years = P X (R/100)2

13.5 = P X (6/100)2

p = 3750

105. A bank offers 4% nominal interest with quarterly compounding. What is the effective rate of interest ?

1. 4.01%
2. 4.02%
3. 4.06%
4. 4.08%

Choice 'C' is correct as

LET,

P =100

quarterly = 4 Part in year

100((1) + (4/4) / 100)⁴

=100((1) + )(1/100)⁴

=100(101/100)⁴

=100 x [(100/101) x (101/100) x (101/100) x (101/100)

=4.0604%

=4.06%

Formula :

P[1 + (nominal rate/ parts )/ 100]^parts

106. The sum of first 50 natural numbers is

1. 1275
2. 2550
3. 2549
4. 2500

Choice 'A' is correct as

n(n+1) / 2

=50(51) / 2

=1275

107. A car travels some distance at a speed 8km/hour and return at a speed 12 km/hour. If the total time taken is 15 hours, what is the distance (in km) ?

1. 48
2. 60
3. 56
4. 72

Choice 'D' is correct as

D = S X t

(d/8)+/(d/12) = 15

d = 72km

108. If product of the first three terms of a G.P. is 64, the middle term is

1. 2
2. 8
3. 6
4. 4

Choice 'D' is correct as

LET ,

ar^-1, a ,ar¹

64 = ar^-1 x a x ar¹

64 = a³

a = 4

109. A and B are subsets of an universal set U such that n(U) = 800, n(A) = 300, n(B) = 400 and n(A∩B) = 100. Then the number of elements in the set (A^c∩B^c) is

1. 150
2. 200
3. 350
4. 400

1. 400

Choice 'B' is correct as

(A U B )^C = (A^C ∩ B^C)

A^C = U - A

(A U B)^C = U - A U B

n (A U B) = n(A) + n(B) + n(A ∩ B)

=300+400-100

=600

n(A^C ∩ B^C ) = U - n (A ∩ B)

=800 - 600

=200

110. If A = { 1, 2, 3, 4} and 5= {3, 5, 7}, then (A-B) u (B-A) is

1. {1,2,3}
2. {3}
3. {1,2,3,4,5,7}
4. {1,2,4,5,7}

Choice 'D' is correct as

A - B = {1,2,3,4} - {3,5,7}

={1,2,4}

B - A = {3,5,7}-{1,2,3,4}

= {5,7}

(A - B) U (B - A) ={1,2,4,5,7}

111. If (300)⁸= 65 .6 1 x10x ,then the value of x is

1. 14
2. 16
3. 18
4. 20

Choice 'C' is correct as

(300)⁸ = 65.61 x 10^x

(3x100)⁸ = (6561/100) x 10^x

6561 x 10¹⁶ = 6561 x 10^x-2

10¹⁶ = 10^x-2

x = 18

112. If 3x-y = 27 and 3x+y = 243 then x is equal to

1. 0
2. 2
3. 4
4. 6

Choice 'C' is correct as

3^x-y =27 3^x+y =243

(3)³ = 3x-y (3)⁵ = 3x+y

x-y = 3 x+5 = 5

(x-y)+(x+y)=3+5

2x = 8

x = 4

113. If log 2 log, log 2 x = 0, then x is

1. 8
2. 1
3. 16
4. 2

114. The LCM of (3!, 4!, 5!) is

1. 6
2. 24
3. 120
4. 60

Choice 'C' is correct as

L.C.M OF (3! 4! 5!)

3! = 3X2X1

4! = 4X3X2X1

5! = 5X4X3X2X1

LCM = 5! = 120

115. Apolygon of n sides has two diagonals.The value of n is

1. 4
2. 3
3. 8
4. 10

Choice 'A' is correct as

no of diagonals = nc2 -n

2 = n (n-3) / 2

4 = n(n - 3)

4 = n2-3n

0=n² - 3n - 4

=n² - 4n + n - 4

=n(n-4) + 1(n-4)

n=4 or n≠-1

116. Express 5 x 6 x 7 x 8 x 9 in factorial notation.

1. 9! / 5!
2. 9! - 5!
3. 9! /4!
4. 10 ! - 4!

Choice 'C' is correct as

5 x 6 x 7 x 8 x 9

in the given product if we multiply

1x2x3x4 / 9!, then

1x2x3x4x5x6x7x8x9

=9! / 4!

117. If the product of the roots of ax² +2x + 6 = 0 is 3, then the sum of the roots is

1. 1
2. -1
3. 1/2
4. - 1/2

Choice 'B' is correct as

2 + β = -b / a

= -2/a

=-2/2

=-1

product = c / a

3 = 6/a

a=2

118. If the equation x² - (p+4) x + 2p + 5 = 0 has two equal roots , then the value of p is

1. ±1
2. 2
3. -2
4. ±2

Choice 'D' is correct as

x² - (P+4)X + 2P + 5 = 0

a = 1 , b = (P+4) , c = 2P + 5

b² - 4ac = 0

(P + 4)² - 4(1)(2P + 5)

(P + 4)² - 8P - 20 = 0

P² + 8P + 16 - 8P - 20 = 0

P² = 4

P=±2

119. A bottle manufacturing company manufactures and sells bottles. Each bottle costs ₹40 to make and the company’s fixed cost is ₹5000.the price function given by P(x) = 300 - 2x. Then the profit maximizing output is

1. 65
2. 565
3. 60
4. 62

120. If y = (2x + 3)⁴ , then dy / dx is

1. 4(2t + 3)³
2. 8(2x + 3)³
3. 32 x³
4. 8(2x + 3)

Choice 'A' is correct as

y = (2x + 3)⁴

dy / dy = (4.2x)³ + (12)³

=4 (2x + 3)³

121. Statistical data collected bynthe government agency for surveying some matters is

1. attribute data
2. primary data
3. secondary data
4. both primary and secondary data

122. Which of the following diagrams is used to find the value of the mode graphically ?

1. Pie chart
2. Bar chart
3. Histrogram
4. Ogive

123. The cumulative frequency table is required to find out which of the following ?

1. Mean
2. Median
3. Mode
4. Range

124.The average of lower and upper class limits is called

1. class-mark
2. class-boundary
3. class-width
4. class frequency

125.The algebraic sum of the deviations of 10 observations measured from 30 is 20.the arithmetic mean of the observations is

1. 28
2. 36.5
3. 42.4
4. 321

126. if the harmonic mean of 2,a and 8 be 24 / 7 , then the value of a is

1. 2
2. 4
3. 8
4. 7

127. The variables x and y are related by 4x - 3y = 5. If the median and mode of the variable x are 4 and 5 respectively , then the mean of y is

1. 3
2. 4
3. 5
4. 2

128. The range of first five prime numbers is

1. 4
2. 5
3. 7
4. 9

129. For a sample of 10 observations,∑x =20 and ∑x2 =20 then the standard deviation is

1. 8
2. 6
3. 4
4. 16

130. For a symmetrical distribution Q₁ = 34 and Q₃= 42. Using Bowley’s measure of skewness, find the median of the distribution.

1. 30
2. 33
3. 36
4. 38

131. If cov (x,y) = 12 , var(x) = 9,var(y) = 25 , then the correlation coefficient is

1. 0.36
2. 0.8
3. 0.5
4. 0.65

132. If var(x) = 144, s.d.(y) = 18 and r (x,y) = 0.9 0.9. then the value of byx is

1. 1.86
2. 2.47
3. 0.82
4. 1.35

133.Find the regression line y on x from the following data:

n=10,∑x = 120 , ∑y =150 , ∑(x - 12)2 = 125 ,∑(y - 15)2 = 180,∑(x - 12) (y - 15)=90 then the value of the correlation coefficient between x and y is

1. 0.6
2. 0.8
3. 0.57
4. 0.68

134. The regression coefficient of x on y and v on x are - 1.2 and - 0.3 respectively. The correlation regression coefficient between x and y is

1. 0.6
2. -0.6
3. 0.57
4. 0.68

135. If x̄ = 6 , ȳ = 7,byx=0.45,bxy=0.65,then the regression equation of x on y is

1. y - 0.65x = 3.8
2. y - 0.45x = 4.3
3. x - 0.45y = 7.6
4. x - 0.65y = 1.45

136. The correlation coefficient between shoe size and intelligence of a person is

1. positive
2. negative
3. non-sense correlation
4. non - negative

137. The correlation coefficient of ranks of n students in two subiects of a test is 0.25 and the sum of squares of differences of the ranks is 63. the number of students appeared in the test is

1. 8
2. 9
3. 10
4. 12

138. if for the events A and A0 ,p(A) = p(A0).then events A and Ao are

1. mutually exclusive but not equally likely
2. equally likely but not mutually exclusive
3. mutually exclusive and equally likely both
4. neither mutually exclusive nor equally likely

139. Two perfect dice are thrown simultaneously.The probability of getting a sum 8 is

1. 7/36
2. 1/36
3. 4/36
4. 5/36

140. For the events A and B , if p(A)=½ and p(B)=7/12 , then p(A | B) is

1. 3/4
2. 2/3
3. 4/36
4. 5/36

141. Two events A and B are said to be independent if

1. P(A | B) = P(A)P(B)
2. P(A | B) = P(A)/P(B)
3. P(A | B) = P(A)
4. P(A | B) = P(B)

142. A card is drawn at random from a well-shut Hod pack of 52 cards. The probability of drawing a king or queen of spade is

1. 1/52
2. 1/26
3. 2/13
4. 1/13

143. A perfect die is thrown. Then probability of getting an even number or a number multiple of 3 is

1. 2/3
2. 1/3
3. 1/2
4. 5/6

144.Using a 3-year weighted moving average with weights 1 , 2 , 1, find the trend value for the 4th year forthe following series:

Year: 1 2 3 4 5 6 7

Values: 2 4 5 7 8 10 13

1. 5
2. 6.67
3. 6.75
4. 6.57

145.Calculate the weighted average of price relative index number from the following data:

Item Weight Base year Cunent year

1. 156
2. 148
3. 165
4. 140

146. If ∑p0q0=1360 , ∑pnq0=1900, ∑p0qn=1344, ∑pnqn=1880 then Laspeyres price index number is

1. 139.70
2. 138.24
3. 98.95
4. 98.82

147. If Laspeyres’ price index = 147.28 and Paasche’s price index = 143.26,then Bowley ’s price index number is

1. 145.86
2. 145.27
3. 142.57
4. 145.25

148. If a perfect coin is tossed 3 times, the probability of gating exactly 2 heads is

1. 1/8
2. 1/2
3. 3/8
4. 5/8

149.Given : P(B1)=P(B2)=½, P(A|B1)=⅓,P(A|B2)=⅔ .using Bayes’ theorem,find P(B1|A).

1. 2/3
2. 1/2
3. 3/4
4. 1/3

150.If A be an event, then which one of the following statements is TRUE?

1. P(A)>0
2. P(A)≥0
3. 0≤P(A)≤1
4. -1≤P(A)≤1

Paper 4 : Business Economics and Management(FBEM)

151. Welfare definition of economics was given by ________

1. Alfred Marshall
2. Adam Smith
3. Robbins
4. Jacob Viner

Choice "A" is correct as

This definition was given by Alfred Marshall. He was the follower of Adam Smith. He wrote a famous book “Principles of Economics” (or) “Principles of Political Economy” in 1870.

Definition:

“Economics is the study of mankind in ordinary business of life. It examines that part of individual and social action which is most closely connected with the attainment and with the use of material requisites of well being”.

152. Which is not a characteristic of human wants ?

1. Wants are satiable
2. Wants are limited
3. Wants are recurring
4. Wants are competitive

Choice "B" is correct as

Human wants are generally considered to be unlimited. People continuously desire more goods and services, even when some needs are satisfied. The other characteristics—satiable, recurring, and competitive—are true of human wants.

Therefore, the correct answer is Wants are limited.

153. ______ elasticity refer to demand for a commodity in relationship with the price of a close substitute

1. Cross
2. Income
3. Price
4. Unitary

Choice "A" is correct as

Cross elasticity of demand measures the responsiveness of the quantity demanded for one good when the price of a related good changes. It is particularly relevant for substitutes and complements.

It shows proportionate change in the demand for one commodity and proportionate change in the price of other commodity. It explains how much change in the price of one commodity leads to how much change in the demand for another commodity

Therefore, the correct answer is Cross elasticity.

154. Market potential is also known as ______ demand

1. market
2. potential
3. sales
4. industry

Choice "D" is correct as

Market potential is also known as industry demand.

Market potential refers to the total demand for a product or service within a particular industry, considering all competitors and market participants. It represents the maximum sales volume that all firms in the industry can achieve under ideal conditions.

Therefore, the correct answer is industry.

155. The Law of Variable Proportions was not propounded by ______

1. Marshall
2. Benham
3. Samuelson
4. Keynes

Choice "D" is correct as

The Law of Variable Proportions was not propounded by:

Keynes

The Law of Variable Proportions, often discussed in the context of classical economics and production theory, was primarily developed by economists like Alfred Marshall. It is associated with concepts in microeconomics and production, while John Maynard Keynes is known for his work in macroeconomics, particularly his theories on aggregate demand and employment.

Therefore, the correct answer is Keynes.

156. All factors of production become variable in the

1. short run
2. medium run
3. long run
4. very short run

Choice "C" is correct as

All factors of production become variable in the long run. In the long run, a company or business has the ability to adjust all inputs, including land, labor, capital, and technology to produce a different output. This can include building new factories, purchasing new equipment, or acquiring new land. The long run allows for more flexibility in terms of production as it allows firms to make significant changes to their inputs and production processes to increase or decrease output. This also applies to the service industry, they can change their location, expand the business or even change their service offerings.

157. ______ cost is also known as variable cost

1. Product
2. Fixed
3. Historical
4. Opportunity

Choice "A" is correct as

Variable costs are costs that vary with the level of output or production. They include costs like raw materials, direct labor, and utilities that increase or decrease as production levels change. Another common term used for variable costs in accounting and economics is "product cost."

Therefore, the correct answer is Product.

158. _____ costs are irrelevant with regard to will be optimum size

1. Product
2. Fixed
3. Variable
4. Sunk

Choice "A" is correct as

Sunk costs are costs that have already been incurred and cannot be recovered. They are irrelevant to current decision-making because they do not affect future costs or revenues. When determining the optimal size of a firm or production level, decision-makers should focus on relevant costs (such as variable costs and opportunity costs) that can change with different decisions.

Therefore, the correct answer is Sunk costs.

159. under _____ competition , every firm will be of optimum size

1. pure
2. perfect
3. monopoly
4. monopolistic

Choice "B" is correct as

In perfect competition, firms are price takers, meaning they cannot influence the market price of the product they sell. They produce at the point where marginal cost equals marginal revenue (MC = MR) to maximize their profits. This condition leads each firm to operate at its optimum size, where it produces at the minimum efficient scale (MES) and achieves productive efficiency.

Therefore, the correct answer is perfect competition.

160. Imperfect market is classified as ______ types

1. 2
2. 3
3. 4
4. 5

Choice "C" is correct as

The imperfect market appears in various forms. They are 1. Monopoly 2. Duopoly 3. Oligopoly 4. Monopolistic competition

Therefore, the correct answer is 4 types.

161. Oligopoly means ______

1. single seller
2. few seller
3. large number of sellers
4. no buyers

Choice 'B' is correct as

Oligopoly is a market structure in which a small number of firms dominate the market and control a large portion of the industry's total output. The term "oligopoly" comes from the Greek words "oligos," meaning "few," and "polein," meaning "to sell."

162. In ______, sellers is the price makers

1. single sellers
2. few sellers
3. oligopoly
4. imperfect market

Choice 'C' is correct as

In oligopoly, sellers are the price makers.

Oligopoly is a market structure where there are few sellers or firms that dominate the market. Due to the small number of firms and their interdependence, each firm has some degree of market power and can influence the market price. This contrasts with perfect competition, where firms are price takers and have no control over the market price.

Therefore, the correct answer is oligopoly.

163. The Kinked Demand Curve Model of oligopoly was developed by _______

1. Cornet
2. Edgeworth
3. Sweezy
4. Sticker

Choice 'C' is correct as

The Kinked Demand Curve Model of oligopoly was developed by Paul Sweezy.

Paul Sweezy, an American economist, proposed the Kinked Demand Curve model in the 1930s. This model attempts to explain price rigidity in oligopoly markets. According to this model, firms in an oligopoly face a demand curve that is kinked at the current market price level. The demand curve is relatively elastic above the current price because if one firm raises its price, its rivals will not follow suit, leading to a significant loss in market share. Below the current price, the demand curve is relatively inelastic because if one firm lowers its price, its rivals will match the price cut, preventing any gain in market share.

Therefore, the correct answer is Sweezy.

164. The market state that satisfies all the essential features of a perfect competition market except identity of a product is known as ______

1. Oligopoly
2. Dunopoly
3. Monopoly
4. Monopolistic competition

Choice 'D' is correct as

Monopolistic competition is a market state that satisfies most of the essential features of a perfect competitive market, but with one key exception: the identity of the product. In a perfectly competitive market, all firms produce identical products, while in monopolistic competition, firms produce differentiated products.

165. In _______ market , the firm has no definite demand curve

1. Oligopoly
2. Dunopoly
3. Monopoly
4. Monopolistic competition

Choice 'D' is correct as

In monopolistic competition, the firm has no definite demand curve.

Monopolistic competition is a market structure characterized by many firms selling differentiated products that are close substitutes for each other. Each firm faces a downward-sloping demand curve for its product due to product differentiation and the availability of substitutes. However, because each firm's product is unique in some way, there is no single, perfectly elastic or perfectly inelastic demand curve that applies universally to all firms in the market.

Therefore, the correct answer is Monopolistic competition.

166. The act of selling the same commodity at different prices to different buyers is known as _____

1. price leadership
2. differential pricing
3. policy pricing
4. skimming pricing

Choice 'B' is correct as

The act of selling the same commodity at different prices to different buyers is known as differential pricing.

Differential pricing occurs when a seller charges different prices to different customers or groups of customers for the same product or service. This pricing strategy can be based on various factors such as quantity purchased, location, customer segment, or timing of purchase. It allows the seller to capture consumer surplus and maximize profits by tailoring prices to different segments' willingness to pay.

Therefore, the correct answer is differential pricing.

167. Penetration pricing is adopted by following a ______

1. low price
2. high price
3. dual price
4. (A) , (B) and(C)

Choice 'A' is correct as

Penetration pricing is a pricing strategy where a product is initially priced at a low level to attract customers and gain market share quickly. This strategy aims to penetrate the market and build a customer base by offering a lower price compared to competitors. Over time, the price may be adjusted upward once the product gains acceptance and market share.

Therefore, the correct answer is low price.

168. Three degrees of prices discrimination

1. Robinson
2. Pigou
3. Adam Smith
4. Sticker

169. In the long run, price is governed by ________

1. cost of production
2. demand - supply forces
3. marginal utility
4. normal profit

Choice 'A' is correct as

In the long run, price is primarily governed by cost of production

In the long run, the price of goods and services is generally determined by the cost of production. The cost of production includes all of the costs associated with creating a product or service, such as the cost of raw materials, labour, and equipment. As these costs change, the price of the goods and services will also change. Additionally, the price of goods and services will also be influenced by market conditions such as supply and demand, competition, and government regulations.

Therefore, the correct answer is cost of production

170. Types of money may be of _____ groups

1. 2
2. 3
3. 4
4. 5

Choice 'C' is correct as

In any economic system usually, there are the operations/circulations of four different types of money. They are commodity money, fiat money, Fiduciary Money and commercial bank money

171. Quantity Theory of money was propounded by ______

1. Irving Fisher
2. Gresham
3. Keynes
4. Adam Smith

Choice 'A' is correct as

The Quantity Theory of Money was propounded by Irving Fisher.

Quantity Theory of money deals with the relationship between quantity of money and price level of economy. Here we discuss three versions of the quantity theory of money.The quantity theory of money explains about the value of money. Irving Fisher gave an equation to determine the value of money. Irving Fisher used an equation [MV = PT]

Therefore, the correct answer is Irving Fisher.

172. Medium of exchange is one among the _______ function of money ( ALREADY THERE IN YV SABOO)

1. secondary
2. primary
3. contingent
4. auxiliary

Choice 'B' is correct as

The primary functions of money are really the technical and important functions of money. They are of two types: Medium of Exchange AND Measure of Value

173. The money supply affects the rate of interest . When the money supply increases, rate of interest decreases . This has been stated by ________

1. Keynes
2. Walker
3. Robbins
4. Crowther

Choice 'A' is correct as

The statement that an increase in the money supply leads to a decrease in the rate of interest is a concept attributed to Keynes.

According to J.M. Keynes, the money supply affects the rate of interest. When the money supply increases, the rate of interest will be decreased. It leads to the increase of investment level of employment, income, demand, price level etc., when the price level increases there is a decrease in the value of money. According to Keynes, the rate of interest plays a dominant role in determining the value of money.

Therefore, the correct answer is Keynes.

174. Collection of cheque is one among the ________functions.

1. creation of credit
2. agency
3. loans and advances
4. acceptance of deposits

Choice 'B' is correct as

Collection of cheques is one among the agency functions of banks.

Agency functions refer to the various services provided by banks on behalf of their customers, which include:

(a) Collection of cheques, drafts, bills of exchange etc. of their customers from other banks. (b) Collection of dividends and interest from business and industrial firms. (c) Purchase and sale of securities, shares, debentures, government securities on behalf of the customers. (d) Acting as trustees and keeping their funds in safe custody, acting as executors and executing the will of the customers after their death. (e) Making payments such as insurance premium, income-tax, subscriptions etc. on behalf of their customers as per their advice.

Therefore, the correct answer is agency.

175. The RBI was nationalised in _________ ( ALREADY THERE IN YV SABOO)

1. 1949
2. 1950
3. 1951
4. 1935

Choice " B " is correct as -

The correct information is that RBI was nationalized in January 1949. Nationalization involved the transfer of the ownership and control of the RBI from private shareholders to the Government of India. This move was aimed at enhancing the central bank's role in shaping and implementing monetary policy for the benefit of the Indian economy.

176. IFCI was established in _______

1. 1949
2. 1948
3. 1947
4. 1946

Choice 'B' is correct as

It was established on 1st July 1948. The main objective of IFCI is to make medium and long term credit to the industrial units.

177. The main purpose of the ______ is regulating business in the stock market and other securities markets

1. SEBI
2. IFCI
3. LICI
4. EXIM Bank

Choice 'A' is correct as

It was set up in 1988. It got statutory reorganization in 1992. The main purpose of the SEBI is regulating business in stock markets & other securities markets.

Therefore, the correct answer is SEBI.

178. Commercial banks create money on the basis of _______

1. cash deposits
2. number of customers
3. statutory reserve
4. debts

Choice 'A' is correct as

Commercial banks create money primarily on the basis of cash deposits.

When customers deposit cash into their bank accounts, banks are required to hold only a fraction of these deposits as reserves (statutory reserve or required reserve ratio) and can lend out the remainder. This process of lending creates new deposits in the banking system, effectively increasing the money supply beyond the initial cash deposits.

Therefore, the correct answer is cash deposits.

179. Monetary policy is formulated by the _______.

1. RBI
2. commercial banks
3. RRBs
4. Government of India

Choice 'A' is correct as

Monetary policy is formulated by the RBI (Reserve Bank of India).

The Reserve Bank of India is the central bank of the country and is responsible for formulating and implementing monetary policy. Monetary policy refers to the actions undertaken by the central bank to regulate money supply, interest rates, and credit availability in the economy, with the goal of achieving macroeconomic objectives such as controlling inflation, promoting economic growth, and ensuring financial stability.

Therefore, the correct answer is RBI.

180. ______ environment is beyond the control of the business

1. Internal
2. External
3. Micro
4. Human Resources

Choice 'B' is correct as

The environment that is beyond the control of the business is the External environment.

External environment refers to factors, forces, and conditions outside the organization that can potentially influence its operations and performance, but which the organization has little or no control over. These factors include economic conditions, political and legal factors, technological changes, socio-cultural trends, market competition, and so on.

Therefore, the correct answer is External.

181. ______ environment does not form part of an organisation ‘s micro environment

1. Intermediaries
2. Customers
3. Legal
4. Suppliers

Choice 'C' is correct as

The environment that does not form part of an organization's micro environment is Legal environment.

An organization's micro environment typically includes SUPPLIERS, CUSTOMERS, COMPETITORS, MARKETING INTERMEDIARIES, MARKET AND ORGANIZATION.

Therefore, the correct answer is Legal.

182. External business environment has been classified into ______ groups

1. 2
2. 3
3. 4
4. 5

Choice 'A' is correct as

This external business environment can be classified into two – micro environment and macro environment

183. The term “T” in SWOT analysis stands for ________.

1. Transparency
2. Total Revenue
3. Threat
4. Transaction

Choice 'C' is correct as

In SWOT analysis, the term "T" stands for "Threats." SWOT analysis is a strategic planning tool used to evaluate the strengths, weaknesses, opportunities, and threats facing an organization. The "T" category refers to the external factors that could negatively impact the organization's performance, such as changes in market trends, economic downturns, increased competition, regulatory changes, or technological advancements by competitors.

By identifying potential threats, an organization can develop strategies to mitigate or eliminate them, minimizing their impact on the organization's operations and performance. This may include adjusting business strategies, investing in new technology or processes, diversifying products or services, or developing contingency plans to address potential threats. Overall, SWOT analysis provides organizations with a framework to identify and analyze key internal and external factors that may impact their operations, helping them to make informed decisions and improve their overall performance.

184. The term “S” in PESTEL stands for _______

1. Strength
2. Social
3. Sustainability
4. Safety

Choice 'B' is correct as

the "S" in PESTEL analysis can sometimes stand for "Socio-economic," depending on the specific context and industry being analyzed.

In some cases, the social and economic factors are combined under a single "Socio-economic" category, while in other cases they are analyzed separately.

185. ________ Factors represent the demographic characteristics , norms , customs and values of the population within which the organisation operates

1. Political
2. Social
3. Economic
4. Environmental

Choice 'B' is correct as

Socio-cultural environment comprises of social traditions, values and beliefs, level and standards of literacy and education, the ethical standards and state of society, the extent of social stratification, conflict and cohesiveness and so forth. The core beliefs of a particular society tend to be persistent. It is difficult for businesses to change these core values, which becomes a determinant of its functioning.

Therefore, the correct answer is Social.

186. Stewardship theory was developed in _________.

1. 1997
2. 1999
3. 2001
4. 2003

Choice 'A' is correct as

Stewardship theory was developed in 1997.

187. Which of the following is not an agency cost

1. Residual loss
2. Bonding costs
3. concurrent loss
4. Monitoring costs

Choice 'C' is correct as

The authors defined agency costs as the sum of (i) the

monitoring expenditure by the principal, (ii) the bonding expenditures by the agent, and (iii) the residual loss,

Concurrent loss is not an agency cost.

188. ______ is concerned with marshalling the human and other resources of the organisation

1. Planning
2. Directing
3. Controlling
4. Organising

Choice 'B' is correct as

Directing is concerned with marshalling the human and other resources of the organization.

189. _______ stated that management art of getting things done through people

1. Louis Allen
2. Mary Parker Follet
3. Henri Fayol
4. Peter Drucker

Choice 'B' is correct as

Mary Parker Follett stated that management is the art of getting things done through people.

190. Determining the time sequence job is called ______

1. planning
2. Forecasting
3. Scheduling
4. Objective

Choice 'C' is correct as

Determining the time sequence job is called scheduling.

191. ______ is the process of dividing the work of the organisation into various units or departments

1. Departmentation
2. Delegation of Authority
3. Decentralisation of Authority
4. Responsibility

Choice 'A' is correct as

The process of dividing the work of the organisation into various units or departments is called Departmentation.

192. Which of the following is an ‘on- the - job training’ method ?

1. Conference
2. Sensitivity training
3. Position Rotation
4. Brainstorming

Choice 'C' is correct as

The methods employed to make the on-the-job training are as under:

• coaching
• apprenticeship training
• job (position) rotation
• vestibule training
• self-improvement programmes

193. ________ is what a communicator is communicating

1. Message
2. Medium
3. Decoding
4. Encoding

Choice 'A' is correct as

The message is what a communicator is communicating

194. Under the ______ style of leadership, the policy is to leave things to take their own course , without interfering

1. Laissez - faire
2. Autocratic
3. Democratic
4. Servant

Choice 'A' is correct as

Under the Laissez - faire style of leadership, the policy is to leave things to take their own course , without interfering

195. ________ is the process of entrusting part of the work by the superior to his / hersubordinates

1. Centralisation of Authority
2. Responsibility
3. Delegation of Authority
4. Accountability

Choice 'C' is correct as

Delegation of authority is “the process a manager follows in dividing the work assigned to him so that he performs that part which only he, because of his unique organisational placement, can perform effectively and so that he can get others to help with what remains.” The delegation of authority by superiors to subordinates is obviously necessary for the efficient functioning of any organisation, since no superior can personally accomplish or completely supervise all organisations.

196. Management may force worker to call off a strike by giving an ultimatum that otherwise they will be suspended. This is the use of _______ power

1. Reward power
2. Expert power
3. Referent power
4. Coercive power

Choice 'D' is correct as

Management may force workers to call off a strike by giving an ultimatum that otherwise they will be suspended . This is the use of Coercive power

197. ________ leadership is a leadership philosophy in which the goal of the leader is to serve

1. Laissez - faire
2. Autocratic
3. Democratic
4. Servant

Choice 'D' is correct as

Servant leadership is a leadership philosophy in which the goal of the leader is to serve

“The servant-leader is servant first… It begins with the natural feeling that one wants to serve, to serve first. Then conscious choice brings one to aspire to lead. That person is sharply different from one who is leader first, perhaps because of the need to assuage an unusual power drive or to acquire material possessions…The leader-first and the servant-first are two extreme types. Between them there are shadings and blends that are part of the infinite variety of human nature.

198. Maslow ‘s theory explains about ________.

1. human needs
2. financial needs
3. machinery needs
4. technical needs

Choice 'A' is correct as

Maslow ‘s theory explains about human needs

Maslow’s need priority model of motivation has gained extensive popularity because it is simple and logical. It is compatible with the economic theory of demand. The theory helps to explain why a person behaves differently in two similar situations. It provides an insight into what is common to all. It extends to all areas of human life and is not limited to work situation alone. But there is little empirical support for it because its propositions could not be vigorously tested through empirical research. The theory could not be validated but it is said to contain some fundamental truths which do not require any proof.

199. Programmed decisions are usually taken by the _________ managers

1. top level
2. middle level
3. lower level
4. supervisory

Choice ‘C' is correct as

The programmed decisions are of routine and repetitive natures which are to be dealt with according to specific procedure, they are usually taken by the lower level manager

200. Decision - making is a part of the function ___________

1. planning
2. Organising
3. Directing
4. Controlling

Choice ‘A' is correct as

Decision-making is a part of the function planning.