Solved MCQs of Commerce for Test Preparation

solved mcqs of commerce
solved mcqs of commerce

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Solved MCQs of Commerce

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Solved MCQs of Commerce

  1. GDP at factor cost is GDP- IT- S
  2. Which one is not the main objective of fiscal policy of India? To increase liquidity in the economy
  3. Which one is not an element of internal environment? Money and Capital market
  4. Which one of the following concepts is used as fund in the preparation of Funds Flow Statement? All Financial Resources
  5. Window dressing is prohibited due to Convention of Disclosure
  6. A commodity is used for multiple purposes, and then the demand for it is known as Composite Demand
  7. Which one of the following is not a measure of dispersion? Quartile
  8. If bxy = 0.25 and byx = 0.64, correlation coefficient is 0.40
  9. Struge’s rule is used to find out directly Number of classes in a continuous distribution
  10. Who among the following developed the technique of Management by Exception? Lester R. Bittel
  11. Appointment of independent Directors is the part of Corporate Governance as per the SEBI
  12. A method for achieving maximum market response from limited marketing resources by reorganising differences in the response characteristics of various parts of the market is known as Market
  13. Who plays their significant role in distribution of goods when they do not sell to ultimate users or consumers? Wholeseller
  14. In Marketing Mix, which four P’s are covered? Product, Price, Place, promotion
  15. Which research includes all types of researches into human motives when it refers to qualitative research designed to uncover the consumer’s sub consciousness or hidden motivations? Motivational Research
  16. False and misleading claims and vulgarity in advertisements do not match with Ethics in advertising
  17. Which method does not consider the time value of money? Average Rate of Return
  18. Which formula is used measure the degree of Operating leverage? C/EBIT
  19. Which one is more appropriate for cost of retained earnings? Opportunity cost to the firm
  20. During which plan was the National Apprenticeship Training Scheme introduced in India? 2nd Five Year Plan Solved MCQs of Commerce
  21. Which among the following is not a voluntary method for prevention and settlement of disputes? Works Committee
  22. Which one among the following has not started Commercial Banking? SIDBI
  23. What is OTP in credit card transactions? One Time Password
  24. The powers of Controller of Capital Issues of India is now shifted to SEBI
  25. Which one is not the source of External Finance? WTO Funds
  26. Which one is called Bretton-Wood Twins? IMF and IBRD
  27. UNCTAD stands for United Nations Conference on Trade and Development.
  28. Which of the following denote the structural changes in Indian economy? (A) Primary sector contribution has gone down. (B) Service sector contribution has gone up. (C) Secondary sector has not changed much. (D) All of the above
  29. Broad Money has to be sensitized through (A) CRR (B) SLR (C) Repo Rate (D) All of the above
  30. Which one is not an element of legal environment? Act of Parliamentarians in Lok Sabha
  31. Public Enterprise is defined as An organisation owned and managed by public authorities for definite set of public purposes.
  32. Conversion cost is the sum of Direct wages, direct expenses and factory overhead
  33. Normally Demand curve slopes Downward
  34. Which of the following is not a restricted random sampling technique? Simple random sampling
  35. Classification of respondents only on the basis of gender is an application of Nominal scale
  36. Karl Pearson’s co-efficient of correlation between two variables is the square root of the product of their regression co-efficients
  37. Statistical software packages for research in social sciences include (A) SPSS (B) STATA (C) MiniTab (D) All of the above
  38. F-test is used to test the significance of the differences between/among (A) Two sample mean (B) More than two samples mean (C) Variance of two samples (D) (B) and (C)
  39. According to Kieth Devis, which one is not a barrier of communication? Technological Barriers
  40. While establishing relation between Maslow’s and Herzberg’s theories, which Needs of Hierachy Theory will fall under the Hygiene Factors? Social, safety and physiological needs Solved MCQs of Commerce
  41. Howard-Sueth model of consumer behaviour is popularly known as Machine Model
  42. To generate and facilitate any exchange intended to satisfy human needs or wants such that the satisfaction of these wants occur with minimal detrimental impact on the natural environment is known as Green marketing
  43. All the activities involved in selling goods or services directly to final consumers for personal non-business uses are done by Retailers
  44. To manage a business well is to manage its future and to manage the future is to manage information is termed as Management information system
  45. DAGMAR approach in marketing is used to measure Consumer satisfaction
  46. Which one is not an important objective of Financial Management? Maximisation of social benefits
  47. Which one refers to cash inflow under payback period method? Cash flow after depreciation and taxes
  48. The concept of present value is based on the Principle of discounting
  49. Cost of capital from all the sources of funds is called Specific cost
  50. On which of the following, at the initial stage, the Indian IT companies relying more for getting good IT professionals? Campus Placement
  51. Imperial Bank was established on January 27, 1921 on the advice of J. M. Keynes
  52. In India, the Commercial Banks are given license of operation by Reserve Bank of India
  53. The provisions of General Reserve in Banking Companies are made keeping in view the provisions of Banking Companies Act, 1949
  54. Balance of Payments can be made favourable if (A) Exports are increased (B) Imports are increased (C) Devaluation of money (D) (A) and (C)
  55. Which one is not an objective of IMF? To finance productive efforts according to peace-time requirement
  56. EPCG denotes Export Promotion and Credit Guarantee
  57. Which one is not an international organisation? CBDT
  58. Who is the fiscal agent and advisor to Government in monetary and financial matters? RBI
  59. Kyoto Protocol pertains to Environmental protection
  60. Uruguay Round pertains to GATT Solved MCQs of Commerce
  61. Which of the following are outside the scope of the Consumer Protection Act, 1986? Services provided under contract of personal service
  62. Which of the following is ‘true’ regarding the Prudence Principle of Accounting? Taking care of the future losses
  63. Which of the following is a non-operating expense? Interest on loan
  64. A and B are partners sharing profits in the ratio of 3 : 2. Their books showed good will at Rs. 3,000. C is admitted with ¼ th share of profits and brings Rs. 10,000 as his capital. But he is not able to bring in cash for his share of goodwill Rs. 3,000. How will you treat this? Goodwill is raised by Rs. 9,000
  65. If there is mutual indebtedness between the transferor company and the transferee company in business combination, which of the following is correct? No adjustment is required in the books of the transferor company
  66. Improvement of profit-volume ratio can be done by (A) Increasing selling price (B) Altering sales mixture (C) Reducing variable cost (D) All of the above
  67. Business Economics is a subject which Deals with the tools of economics used for decision making in business
  68. The consumer is said to be in equilibrium when he plans his expenditure on x, y and z commodities in such a way that he ultimately attains MU/ Px = MU/ Py = MU/ Pz = MUm
  69. The law of statistics, which says ‘Moderately large number of items chosen at random from a large group possess the characteristics of the large group’, is referred to as The Law of Statistical Regularity
  70. A distribution, where the value of arithmetic mean is maximum as compared to median and mode, is Positively-skewed distribution
  71. The most appropriate average to be used to compute the average rate of growth in population is Geometric mean
  72. “The life expectancy of people in Kerala is more than that of Tamil Nadu.” This statement is an example of Correlational Hypothesis
  73. According to the Boston Consulting Group, a business which has a high growth rate but a weak market share is referred to as a Question Mark
  74. ‘No ideas are ever criticized’ and ‘the more radical the ideas are the better’ – are the rules of which decision making process? Brainstorming
  75. According to McClelland’s Needs Theory, which of the following is not a motivating need? Need for Security
  76. In the managerial grid, developed by Blake and Mouton, a manager who has high consideration for production but little concern for people is known as 9.1 Management
  77. Which of the following is not the major component of holistic marketing? Customer satisfaction
  78. Which of the legislations listed below do not form part of the marketing environment of India? (A) The Drugs and Cosmetics Act, 1940 (B) The Prevention of Food and Adulteration Act, 1954 (C) The Monopolies and Restrictive Trade Practices Act, 1969 (D) Both (B) and (C)
  79. The set of all actual and potential buyers of a product is known as Market
  80. In the model of consumer behaviour given by Philip Kotler, what constitutes the marketing stimuli? Four P’s of marketing Solved MCQs of Commerce
  81. The factor that exerts the broadest and deepest influence on consumer behaviour is Culture
  82. Which one of the following is not among the assumptions of the Modigliani-Miller model? Unity for dividend payout ratio
  83. The most suitable coverage ratio for deciding the debt capacity of a firm is Cash Flow Coverage Ratio
  84. Which one of the following is the most popular method for estimating the cost of equity? Capital asset pricing model
  85. Which one of the following is not the internal factor affecting the weighted average cost of capital of a firm? Market risk premium for the firm
  86. Most common approach for analysing the capital structure of a firm is Comparative Analysis
  87. Who propounded “Theory Z”? William Ouchi
  88. Another name for MATRIX organisation is Project organisation
  89. The idea that a manager tends to be promoted to the level of his incompetence is referred to as The Peter principle
  90. Call money rate is applicable for a very short period to Inter bank advances
  91. Identify the one, from the following, which is not a type of disequilibrium in the balance of payments of a country: Sectoral disequilibrium
  92. The participants who take advantage of different exchange rates in different markets are Arbitrageurs
  93. An MNC that maintains a balance between the home market and host market oriented policies is Geocentric firm
  94. Direct supervision over depositories and mutual funds is undertaken by SEBI
  95. In the call/notice money market, which of the following participants is allowed to trade? Only Commercial Banks
  96. The apex consumer court in India is referred to as National Consumer Disputes Redressal Commission.
  97. Who is Chairman of 13th Finance Commission? Dr. Vijay C. Kelkar
  98. Insurance expenses paid to bring an equipment from the place of purchase to the place of installation isa type of Capital expenditure
  99. ABC Ltd was incorporated with an authorised Share Capital of Rs. 1, 00,000 equity shares of Rs. 10 each. The Board of Directors of the company decided to allot 10,000 shares credited as fully paid to the promoters of the company for their services. Which account should be debited in the books of ABC Ltd.? Goodwill Account
  100. In a reconstruction scheme, the reduction of capital may take the form of (A) Reducing the liability of the shareholders in respect of any unpaid amount on the shares held by them. (B) Paying-off any paid-up share capital which is in excess of its requirement. (C) Cancelling any paid-up share capital which is lost or unrepresented by available assets. (D) All of the above. Solved MCQs of Commerce
  101. While determining the normal rate of return for the valuation of shares in Market Value Method, which of the following should be taken into consideration? (A) The degree of risk involved (B) The current rate of interest on gilt-edged securities. (C) Weighted average cost of capital. (D) All of the above.
  102. Master budget is a Summary Budget
  103. Price, Marginal Revenue and Elasticity are related to each other. When e = 1, then: MR = 0
  104. The difference between sample statistic and its corresponding population parameter is Sampling error
  105. Kendall’s co-efficient of concordance is used to Test the relationship between variables.
  106. The general pattern of behaviour, shared belief and values that members have in common is known as Organisation culture
  107. Which of the following is not a principle of management according to Henri Fayol? Unity of Managers
  108. Which of the following concepts is based on development, design and implementation of marketing programmes, processes and activities that recognise their breadth and interdependence? Holistic marketing concept
  109. The concept of marketing-mix, consisting of the 4 P’s of marketing, was developed by E. Jerome McCarthy
  110. The selling concept is most likely to be used by firms which sell Unsought goods
  111. Consumer attitudes and beliefs about diet, health and nutrition are influenced by Cultural environment
  112. Positive NPV in project appraised by a firm may not occur an account of Intangible benefits
  113. In case the projects are divisible under capital rationing an appropriate project appraisal method is Profitability Index Method
  114. Permanent working capital is generally financed through Long term Capital Funds
  115. The appropriate ratio for indicating liquidity crisis is Acid test ratio
  116. Who proposed a model to apply economic order quantity concept of inventory management to determine the optimum cash holding in a firm? William J. Baumol
  117. Which of the following is not included in the model of the systems approach to Human Resource Management? Depart mentation
  118. It is generally easy to measure the performance of the Sales person
  119. Which one of the following is not a monetary incentive to sales people? (A) Bonus (B) Staff meeting (C) Travelling allowance (D) Both (B) and (C)
  120. RBI ensures that banks operate within the set norms by conducting ______ inspections and _______ monitoring. On site, off site Solved MCQs of Commerce
  121. Under Section 37 of the Banking (Regulation) Act, a moratorium order can be issued by the High Court for a maximum total period of Six months
  122. Bonds or debentures issued by Securitization company should bear interest not less than 1.5% over the Bank Rate
  123. Section 131 of the Negotiable Instruments Act extends protection to the Collecting Banker
  124. Flow of foreign loans and investments affect Capital Account balance
  125. Concessions mainly multinational in character come under the principle of Reciprocity
  126. From the following identify the one which is not a commercial counter trade? Buy-back agreement
  127. If the spot price is higher than the strike price in a call option, it is referred to as In-the-money
  128. Identity the item which does not include under Current Account transaction. Non-monetary movement of gold
  129. Government regulation of business is basically intended to Protect the public from the negative consequences of business behaviour.
  130. What is not the advantage of SEZ? Diversion of large tracts of farm land
  131. Which type of the complaints are not to be entertained by Consumer Forums under the Consumer Protection Act, 1986? Services provided free of cost
  132. Which of the following is a WTO procedure to promote globalisation? Promotion of free trade
  133. In practice, accountants consider revenue from sales if a transaction meets the following condition(s): (A) The seller has passed the legal or economic ownership of the goods to the buyer (B) The seller and the buyer have agreed on the price of the goods (C) The buyer has paid the price of the goods or it is certain that he will pay the price (D) All of the above
  134. The main difference between marginal costing and absorption costing lies in the treatment of Variable overhead
  135. Which of the following items is not an appropriation of profit for a limited company? Debenture interest payable
  136. Which of the following is not applicable to responsibility accounting? Accounting Centre
  137. Which one of the following is not the basic assumption of Cardinal Utility analysis? Diminishing marginal utility of money
  138. Which one of the following is not a property of indifference curve? Indifference curves necessarily have to be parallel
  139. According to the Law of Variable Proportions, the second stage of production ends when Marginal productivity of the variable input becomes zero and average productivity is positive.
  140. Total Revenue (TR) function and the Total Cost (TC) function of a perfectly competitive market firm are as follows: TR = 480 Q – 8 Q2 , TC = 400 + 8 Q2… The profit maximizing output would be: 15 Solved MCQs of Commerce
  141. From a population with mean of 220 and standard deviation of 30, a sample of 36 was drawn at random. Calculate the standard error of the sampling distribution and choose the correct answer from the following options. 5.0
  142. For a hypothesis test, alpha (α) is 0.05 and beta (β) is 0.10. The power of this test is 0.90
  143. Which of the following is not true about proactive planning? Reacting to external events
  144. Which of the following is not a characteristic of non-programmed decisions? The conditions for non-programmed decisions are highly certain
  145. Which of the following is an ethical behaviour of a manager? Not divulging trade secrets to competitors
  146. Which of the following is suggested by Blake and Mouton as the best leadership behaviour? High concern for both people and production
  147. Which segmentation approach is the most compatible with the spirit of the marketing concept? Benefit sought
  148. Which of the stages of new product development process can be skipped? Test marketing
  149. The price-setting method which most closely corresponds to the concept of product positioning is Perceived value pricing
  150. The most important retail marketing decision a retailer has to make is to Identify its target market.
  151. Which element of the promotion mix do wholesalers primarily use? Personal selling
  152. When the expected level of EBIT exceeds the indifferent point for two alternative financial plans, (Equity financing and Debt-financing), then The use of debt financing would be advantageous to increase EPS.
  153. Which one of the following is not the assumption of the Modigliani-Miller Irrelevance Theory of Dividend Policy? Dividend policy has its effect on firm’s cost of equity
  154. Which of the following terms includes the task, duties and responsibilities of a particular job? Job Analysis
  155. In which method of performance appraisal, the evaluator keeps a written record of significant events and how difficult employees behaved during such events? Critical Incidents Method
  156. In connection with HRD, what is incorrect? It is an integrated system
  157. In which method of training, job conditions are duplicated with equipments and machines which are identical with those used at the work place? Vestibule training
  158. Which one of the following techniques is used by the Commercial Banks in India to measure the risk arising from trading activity? Value at risk methodology
  159. Which of the following schemes introduced by NABARD is intended to provide credit to farmers? Kisan Credit Card
  160. Which one of the following is a recent E-Banking initiative in Commercial Banks in India? NECS Solved MCQs of Commerce
  161. BOP problems in India cannot be attributed only to Increase in invisible surplus
  162. A situation where any advantage given by one member of the WTO to another member is extended to all WTO members is referred to as Most Favoured Nation
  163. The collapse of which of the following systems is related to the Triffin Paradox? Bretton Woods
  164. In accounting, profit prior to incorporation is treated as Capital Reserve
  165. Receipts and Payments Account is prepared by Non-Trading concerns
  166. Owners equity stands for Total Assets minus Total outside Liabilities.
  167. When the Debt Turnover Ratio is 4, what is the average collection period? 3 months
  168. In marginal costing, contribution is equal to Sales – Variable cost
  169. The funds available with a company after paying all claims including tax and dividend is called Retained Earnings
  170. When average cost is declining Marginal cost must be below average cost.
  171. ABC Ltd. has declared 40% dividend. Which one of the following does it mean? The company will provide dividend 40% on paid-up capital
  172. The main objective of Accounting Standards is To harmonise the diversified accounting practices.
  173. Income and Expenditure Account of non-profit organisation is a Nominal Account
  174. If the current ratio is 2: 1 and working capital is Rs. 60,000, what is the value of the Current Assets? Rs. 1, 20,000
  175. What is customer value? Ratio between the customer’s perceived benefits and the resources used to obtain these benefits
  176. Which is used for short-term sales achievement? Sales Promotion
  177. Public distribution system relates to Retailing system
  178. Who do buy more, complain less, spread positive word of mouth, ensure a large customer base and repeat business? Delighted customers
  179. There are impulses which persuade a customer to buy certain products without evaluating the positive and negative value of the same. (A) Emotional motives (B) Blind motives (C) Egoistic motives (D) All the above
  180. Which subject is relevant to the study of consumer behaviour? (A) Economics (B) Psychology (C) Sociology (D) All the above Solved MCQs of Commerce
  181. Find an incorrect statement. Attitudes are synonymous with behaviour
  182. Who is considered Father of Scientific Management? F.W. Taylor
  183. Who did give the concept of hierarchy of needs? A.H. Maslow
  184. Induction of employees relates to Introduction
  185. ‘Kinked’ demand curve is related with Oligopoly
  186. Who is not associated with HRM? K.K. Devit
  187. Merit rating is not known as Job Rating
  188. If price of any commodity decreases by 20% and the demand for that commodity increases by 40%, then elasticity of demand would be Highly elastic
  189. Which of the following statements is true? In case of inferior goods, the income effect is negative, although the substitution effect is positive
  190. In perfect competition, the demand curve of a firm is Horizontal
  191. Which one is not non-financial incentive? Additional bonus on minimum wasteful expenditure
  192. HRM does not include Sales promotion
  193. The term (1-B) is called Power of the test
  194. Sampling distribution of mean is very close to the standard normal distribution when (A) Population is normally distributed. (B) Population is not normally distributed, but sample size is large. (C) Both (A) and (B). (D) Neither (A) nor (B).
  195. If the value of co-efficient of determination is 0.64, what is the value of coefficient of correlation? 0.80
  196. Which one of the following is not a benefit of privatisation? Concentration of economic power
  197. ‘BOLT’ system in the Indian Securities market is related to Bombay Stock Exchange
  198. Which one of the following is not a money market instrument? Warrants
  199. Which one is related with micro financing? SHG
  200. Which one of the following is not an element of internal environment? Customers Solved MCQs of Commerce
  201. The presence of fixed costs in the total cost structure of a firm results into Operating leverage
  202. “The cost of capital declines when the degree of financial leverage increases.” Who advocated it? Net income approach
  203. A view that the dividend policy of a firm has a bearing on share valuation advocated by James E. Walter is based on which one of the following assumptions? Retained earnings is only source of financing.
  204. The Comparative Cost Advantage Theory was given by David Ricardo
  205. The companies globalise their operations through different means: (A) Exporting directly (B) Licensing/Franchising (C) Joint ventures (D) All the above
  206. The components of W.T.O. are (A) Ministerial Conference (B) Disputes Settlement Body (C) Director General (D) All the above
  207. India is not associated with NAFTA
  208. Which one of the following is true statement? A balance of payment deals with both visible and invisible items
  209. SDRs are popularly known as Paper Gold
  210. Which one is not international institution? TRAI
  211. Which one of the statements is not true? Letter of credit does not indicate that the bank will pay the value of imports to the exporter
  212. Which one is not Finance Company? IRDA
  213. The Securities and Exchange Board of India was not entrusted with the function of Improving the earnings of equity holders.
  214. Which one is a not Non-Marketable security? Corporate Securities
  215. Minimum Alternative Tax (MAT) under Sec.115 JB of the Income Tax Act is applicable on Certain companies
  216. For the Assessment Year 2011-12, deduction under Sec. 80G is available without any limit but at the rate of 50% on Jawahar Lal Nehru Memorial Fund.
  217. Interest on capital paid by a firm to its partners, under the Income Tax Act, 1961, is allowed 12%
  218. Under capital gains head of the Income Tax Act, the income from sale of Household Furniture is Exempted Income
  219. Under Section 80E of the Income Tax Act, 1961 deduction in respect of payment of interest on loan taken for higher education shall be allowed up to Without any limit
  220. If Opening Stock is Rs. 10,000, Net Purchases Rs. 70,000, Wages Rs. 2,500, Carriage inward Rs. 500 and closing Stock Rs. 15,000, what is the Manufacturing Cost? Rs. 68,000 Solved MCQs of Commerce
  221. What does a high payout ratio indicate? The management is not ploughing back enough profit
  222. Which one of the following statements is true? Capital expenditure affects the profitability of a concern indirectly but revenue expenditure affects directly
  223. X and Y are partners in a firm sharing profits in the ratios of 2: 1. Z is admitted with a 1/3 profit sharing. What will be the new profit sharing ratio of X, Y and Z? 4: 2: 3
  224. Which one of the following will not affect the working capital? Realization of cash from debtors
  225. In India, which of the following is prepared on the guidelines of AS-3 (Accounting Standard – 3)? Cash Flow Statement
  226. The main effect of inflation on the financial statement is Erosion of capital
  227. Present value of future earnings is a model of Human Resources Accounting suggested by Brauch Lev & ABA Schwartz
  228. Which element of the promotion mix do wholesalers generally apply to obtain their promotional objective? Trade Promotion
  229. Who has given ‘fourteen Principles of Management’? Henry Fayol
  230. What is M.B.O? Management by Objective
  231. Market sub-divided on the basis of behavioural characteristics is called Segmentation
  232. What is mass marketing? Offering the same products and marketing mix to all consumers
  233. Which concept of marketing is based on the assumption that superior products sell themselves? Product
  234. In broader sense, marketing communication includes (A) Product (B) Price (C) Place (D) All
  235. Physical distribution provides Place and Time utility
  236. What is relevant to place variable of marketing mix? Sales personnel motivation
  237. Non-store marketing includes (A) Home selling (B) V.P.P. (C) Vending Machines (D) All of the above
  238. What is customer delight? Performance equal to expectation
  239. Which terms are often used interchangeably in marketing literature? Orientation, concept, philosophy
  240. Which one of the following is not the operative function of HRM? Controlling Solved MCQs of Commerce
  241. Under which method of performance appraisal one person is compared with all others for the purpose of placing them in a simple order of work? Ranking
  242. Demand has the following elements: (A) Quantity (B) Price (C) Time (D) All the above
  243. A perfectly competitive firm attains equilibrium when MR = MC
  244. The purpose of job evaluation is Wage Determination
  245. For testing of hypothesis H0: M1 = M2 and H1: M1 < M2, the critical value of Z at 5% level of significance when size of sample is more than 30 is 1.645
  246. Which of the following is the nonrandom method of selecting samples from a population? Quota Sampling
  247. If the two regression coefficients are 0.8 and 0.2, then the value of coefficient of correlation is + 0.40
  248. Which one of the following is a relative measure of dispersion? Coefficient of variation
  249. The concept of ‘Rolling Plan’ in India was introduced by the Janta Government
  250. Which one of the following is an obstacle to globalization? Obsolescence
  251. ‘VSAT’ technology is first followed for on-line trading by NSE
  252. The flagship project of Government of India launched for generating guaranteed employment in rural areas is known as MNREGA
  253. The conflicts in project ranking in capital budgeting as per NPV and IRR may arise because of (A) Size disparity (B) Time disparity (C) Life disparity (D) All the above
  254. The degree of financial leverage reflects the responsiveness of EPS to changes in EBIT
  255. The overall capitalization rate and the cost of debt remain constant for all degrees of financial leverage is advocated by Net Operating Income Approach
  256. Which of the following is not included in the assumptions on which Myron Gordon proposed a model on stock valuation? Finite life of the firm
  257. BRICS includes Brazil, Russia, India, China and South Africa
  258. Out of the following, one is not related with WTO: TRAI
  259. Balance of Payment includes components Current Account, Capital Account, Unilateral Payments Accounts, Official Settlement Account
  260. The commercial banks do not perform one function out of the following: Issuing Currency Notes Solved MCQs of Commerce
  261. One of the items is not related with e-banking: Demand Draft
  262. Factoring and forfeiting have not taken off in the Indian economy due to lack of expertise and experience. One is not included in the factoring services rendered. Giving advice
  263. Which one is not the form of FDI? Making investment in the mutual funds
  264. Which one of the following is not the advantage of MNCs to the host country? Increase in social activity
  265. India suffered from deficit balance both in trade balance and net invisibles, hence, took up a number of steps to manage this problem. Which one is not appropriate for this? Export control
  266. Mr. James, a citizen of U.S., arrived in India for the first time on 1st July, 2010 and left for Nepal on 15thDecember 2010. He arrived to India again on 1st January 2011 and stayed till the end of the financial year 2010-11. His residential status for the assessment year 2011-12 is Not ordinarily resident
  267. The value of free accommodation in Delhi provided by employer in the private sector is 15% of salary
  268. Which of the following is not a capital asset under capital gains head of income? Stock in trade
  269. Under the Income Tax Act, 1961 unabsorbed depreciation can be carried forward for set-off purpose: For unspecified period
  270. Which of the following is not regulated by The Competition Act, 2002? Medical negligence
  271. Indicate what is not correct in respect of the Consumer Protection Act, 1986. A complaint involving a claim of Rs. 15 lakhs is to be filed before the State Commission
  272. If bonus shares are issued out of pre-acquisition profit, it will have No effect on the Consolidated Balance Sheet
  273. The present value of the future contributions of employees is one of the methods of HR Accounting
  274. A standard which can be attained under the most favourable working conditions is called Ideal Standard
  275. Which of the following ratios are taken into consideration by a banker before sanctioning the loan? Debt-Equity Ratio
  276. A measure of the responsiveness of quantity demanded to changes in the price of a related good is known as Cross Elasticity of Demand
  277. 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? Rs. 200 and Rs. 200
  278. 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
  279. What kinds of actions can be taken to put the rivals at a disadvantageous position under oligopoly market? (A) Commitments (B) Threats (C) Promises (D) All the above
  280. There is no exceptions to the law of demand in the case of Normal goods Solved MCQs of Commerce
  281. What is the degree of elasticity of demand in case the demand is represented by a straight line parallel to the x-axis? e = ∝
  282. If a chi-square test is to be performed on a contingency table with 3 rows and 4 columns, how many degrees of freedom should be used? 6
  283. If the sum of squares of deviations within samples is 140 with 12 degrees of freedom and the sum of squares of deviations between samples is 190 with 2 degrees of freedom, the test statistic will be 8.14
  284. The regression equation of profits (X) on sales (Y) of a firm is given as: 3Y – 5X + 110 = 0. If the sales of the firm is Rs. 44,000, the profit will be Rs. 26,422
  285. Cricketer ‘A’ scores on an average 40 runs with a standard deviation of 5. Scores of players ‘B’ and ‘C’, on an average, are 75 and 90 with standard deviations 10 and 18 respectively. Arrange the players in the descending order of consistency: A, B and C
  286. Among the following, choose the most suitable ‘test’ that can be applied to examine the influence of one factor on different groups: ‘F’ test
  287. A machine produced 20 defective articles in a batch of 400. After overhauling, it produced 10% defectives in a batch of 300. Which test of hypothesis can be applied to the above situation to examine whether the machine has improved? Test of significance of difference between two sample proportion (one-tail test)
  288. Strategies and policies give direction
  289. According to Vroom’s Expectancy Theory of Motivation, Force = valence × expectancy
  290. In the managerial grid, the managers who have little or no concern for production but are concerned only for people are known as what type of managers? 1.9 Management
  291. According to the Boston Consulting group, a business, which has a strong market share in a low growth industry is referred to as a Cash Cow
  292. Which is not one of the stages in the consumer buying-decision process? Cultural factors
  293. At which stage of product-life-cycle are the pricing decisions most complex? Maturity
  294. Which one is not an element of market logistics? Supply chain management
  295. Under which legislation, the manufacturers and distributors are required to declare Maximum Retail Price (MRP) on packaged commodities? The Standards of Weights and Measures Act, 1976
  296. In modern marketing, which of the following functions of a distribution middleman is gaining maximum importance? Gathering market information
  297. Which method of setting the advertising budget of a company is considered to be the most scientific? Objectives and tasks method
  298. Mutually exclusive projects can be more accurately ranked as per Net Present Value Method
  299. Which one of the following does not constitute a Standalone Risk Analysis? Corporate Risk Analysis
  300. Financial leverage in a firm is positively affected by Intensity of tangible assets Solved MCQs of Commerce
  301. Dividend irrelevance hypothesis is implied in the M.M. Model
  302. Which one of the following does not serve the main objective of performance appraisal? Ethical and moral values
  303. The major provisions for employees’ health and safety are contained in The Factories Act, 1948
  304. PIN in banking transaction is known as Personal Identification Number
  305. Reserve Bank of India was nationalized on January 01, 1949
  306. When a banking company is placed under moratorium under Section 45 of the Banking (Regulation) Act, 1949, the RBI must prepare a scheme of Reconstruction of the company or amalgamation with any other bank
  307. Given that: Fair rent of a let out house property is Rs. 75,000. Its Municipal value is Rs. 60,000, standard rent is Rs. 72,000 and actual rent received is Rs. 63,000. What is the Gross Annual Value of this house property? Rs. 72,000
  308. Which of the following deductions will not come under Sec. 80 of the Income Tax Act? Deduction for interest on loan taken for the construction / purchase of house property
  309. X purchased a land in the P.Y. 1997- 98 for Rs. 50,000. This land was sold by him during the P.Y. 2009-10 for Rs. 8,00,000. The fair market value of this land on 1-4-81 was Rs. 1,20,000. If the Cost Inflation Index for the A.Y. 2010-11 is 632, his capital gain for the A.Y. 2010-11 will be Rs. 41,600
  310. Any amount of money received in excess of Rs. 50,000 without consideration is fully taxable in the hands of Individuals and HUF
  311. Under the provisions of the Industries (Development and Regulation) Act, 1951, a licence is necessary for (A) Changing the location of an existing industrial undertaking. (B) Producing or manufacturing a ‘new article’ in an existing industrial undertaking. (C) Establishing a new undertaking. (D) All of the above
  312. The United Nations Conference on Trade and Development (UNCTAD) was set up in 1964
  313. Indicate the ground on which a complaint under the Consumer Protection Act, 1986, shall be invalid. A service provided free of cost
  314. Performance evaluation of a responsibility centre can be done by (A) ROI (B) Return on sales (C) EVA (D) All of the above
  315. Social Balance Sheet shows Value of employees of the organisation
  316. Which of the following comes under efficiency ratios? (A) Average collection period (B) Inventory turnover ratio (C) Fixed assets turnover ratio (D) All of the above
  317. Which one is not the item of economic cost to the business? Market supplied resources
  318. Demand must have the elements (A) Desire (B) Want (C) Quantity, Price and Time (D) All of the above
  319. The Learner Index measures Market power
  320. If there are 8 possible classes under consideration for goodness of-fit, the number of degrees of freedom will be Cannot be determined from the given information. Solved MCQs of Commerce
  321. Identify from the following, the test statistic for which the value of numerator should always be greater than that of denominator. ‘F’ value
  322. Which of the following tests can be based on the normal distribution? (A) Difference between independent means (B) Difference between dependant means (C) Difference between proportions (D) All of the above
  323. From the following, identify one situation where ‘F’ test cannot be used? To test the hypothesis about a single population variance
  324. Which statistical test should be applied to test the effectiveness of ‘special coaching’ on the marks scored by the students? Paired ‘t’ test
  325. In a linear equation, y = a + bx, ‘a’ refers to Y-intercept
  326. Which among the following is the most popular approach for accomplishing the results? Management by objectives
  327. The managerial function of organizing involves Creating structure of functions and duties to be performed.
  328. A leader who identifies what subordinates need to do to achieve objectives, clarify organizational roles and tasks, set up an organization structure, reward performance and provide for the social needs of their followers, is A transactional leader
  329. Which of the following is not an assumption of theory X? An average human being learns under proper conditions, not only to accept responsibility but also to seek it
  330. If a network of interpersonal relationship that arise when people associate with each other is an informal organization, then find out which of the following is not an informal organization? Customers’ group
  331. Which of the following has refined Maslow’s theory of motivation by proposing a hierarchy of three needs? Aldorfer
  332. Which segmentation approach is the most compatible with the spirit of the marketing concept? Benefit sought
  333. The description of a product’s quality, features, style, brand name and packaging identifiers the Actual product
  334. In India, which pricing practice is not permissible? Predatory pricing
  335. Which form of retail outlet has the highest operating costs? Department store
  336. Venture capital financing at starting stage is generally not done through Deep discount bonds
  337. Full details for the issue of ADRs by a company must be furnished within 30 days from the date of its closure to Reserve Bank of India (RBI)
  338. The degree to which the returns of the two securities change together, is reflected by Covariance
  339. The transfer by a company of one or more of its business divisions to another newly set up company is called Demerger
  340. Which of the following principle serves as a warning to organisations not to take the selection and promotion process lightly? Peter Principle Solved MCQs of Commerce
  341. O C TA PA C stands for Openness, Confrontation, Trust, Authenticity, Pro-action and Collaboration
  342. Technique of ‘Transaction Analysis’ was developed by Eric Berne
  343. Which one of the following methods is not a demand forecasting method of Human Resource Planning? Managerial grid
  344. Transaction of Internet Banking excludes Withdrawal of cash anywhere in India.
  345. Which among the following is not a category of Non-Performing Assets? Devaluated Assets
  346. When a loan will be NPA? (A) Interest and/or loan instalments overdue for more than 90 days. (B) Account is out of order for more than 90 days in case of overdraft/cash credit. (C) Bill remains overdue for more than 90 days. (D) All of the above.
  347. Donation to National Children’s Fund will come in which of the following deduction under Sec. 80G of Income Tax Act, 1961. 50 percent deduction without any qualifying limit
  348. If the taxable income of a domestic company for the Assessment Year 2011-12 is Rs. 9, 00,000, its tax liability will be Rs. 2, 78,100
  349. Unabsorbed depreciation which could not be setoff in the same assessment year, can be carried forward up to Indefinite period
  350. If the book profits of a partnership firm is Rs. 1, 10,000, the remuneration admissible to working partners under Sec.40 (b) of the Income Tax Act, 1961 is Rs. 1, 50,000
  351. Which of the following expenses is inadmissible while computing income from other sources? Interest paid on amounts borrowed to meet tax liabilities
  352. The first macro-environmental force that a business firm generally monitors is Demographic environment
  353. Which of the following statements is true? The biggest source of Central Government’s revenue is Central Excise
  354. Which one of the following is not included in the Consumer Rights as per the Consumer Protection Act, 1986? Right to a physical environment that will protect and enhance quality of life
  355. A consumer can file a complaint under the Consumer Protection Act, 1986, on any of the following grounds except: Charging very high price
  356. Financial statements provide a true and fair view if (A) It is free from any material error and bias. (B) It is prepared using the appropriate accounting policy and applicable accounting standards. (C) It is prescribed in the format prescribed by the regulator or, in the absence of a prescribed format, it is prepared in a manner that facilitates analyses of the financial position and the performance of the reporting enterprise. (D) It conforms to all of the above (A), (B) and (C)
  357. Which of the formula is used to calculate Absolute Liquid Ratio is? Absolute Liquid Assets, Current Liabilities
  358. A company sells its product at Rs. 15 per unit. In a period if it produces and sells 8,000 units, it incurs a loss of Rs. 5 per unit. If the volume is raised to 20,000 units it earns a profit of Rs. 4. Variable cost per unit will be Rs. 5 per unit
  359. Which of the following is a sub variance of labour efficiency variance? (A) Idle time variance (B) Labour-mix variance (C) Labour-yield variance (D) All of the above
  360. An investment centre is a responsibility centre where the manager has control over Costs, profits and product quality Solved MCQs of Commerce
  361. According to H.A. Simon, if a firm fails to achieve its target initially, it results in Search behaviour
  362. When the demand curve is relatively highly elastic, the marginal revenue is Positive
  363. In which one of the following market situations the practice of price rigidity is found? Oligopoly market
  364. During short-run, the optimum level of output corresponds to that level of output where AC is the minimum
  365. The opportunity cost is a term which describes The loss of the reward in the next best use of that resource.
  366. A time series is a set of data collected at Regular intervals
  367. Given the following data calculate the regression coefficient of X on Y. Pearson’s correlation coefficient = + 0.8. Regression coefficient of Y on X = 0.8. Choose the correct answer from the following: 0.80
  368. Which kind of test from the following options is the right test to use when the hypotheses for testing are stated as: H0: Population mean is equal to the sample mean. H1: Population mean is not equal to the sample mean. Two-tailed test
  369. The authoritarian leadership style goes with Theory X
  370. A company plans to create the largest possible total sales volume. It should use Differentiated marketing
  371. The third stage in the consumer buying decision process is Evaluation of alternatives
  372. Manufacturers of convenience goods typically seek ______ distribution. Intensive
  373. Which promotional tool is most cost effective when a product is in the decline stage of its product life cycle? Sales promotion
  374. Which one of the following expression represents a correct matching? A decrease in the proportional claim on earnings and assets of a share of common stock due to the issuance of additional shares: Dilution
  375. When the internal rate of return of a project is more than the hurdle rate, the Net Present Value would be: Positive
  376. Which one of the following expressions has incorrect matching? A method of financing where all long term funds are used to finance the current assets: Aggressive Approach
  377. The Equal Remuneration Act, 1976 is primarily applicable to workers working on Annual wage basis
  378. In comparing Maslow’s and Hertzberg’s Theories of Motivation, which motivators of Hertzberg are similar to the need specified by Maslow? Self-actualisation needs
  379. The managerial function of staffing is most closely related to Organising
  380. The ‘staffing function’ does not include: Span of control Solved MCQs of Commerce
  381. On-the-job training does not include Sensitivity training
  382. Which one of the following is not a correct method of calculating profitability ratio in banking sector? Spread ratio = Interest earned ratio + Interest paid ratio
  383. Capital adequacy norm is expressed as a percentage of Risk adjusted Assets
  384. The Bonds and Debentures issued by State Financial Corporations are guaranteed by State Government
  385. Which of the following statements is true? If the absolute Purchasing Power Parity (PPP) holds good, then the relative PPP also holds good
  386. A company is planning to enter a foreign market. Which of the following entry strategies will give it the maximum control? Direct investment
  387. The opportunity cost approach in Human Resources Accounting was introduced by Hckimian and Jones
  388. The GDRs and ADRs can be listed on Any of the Overseas Stock Exchanges
  389. Which of the following is responsible for investigating cases referred to it and deciding whether a proposed merger is in the ‘public interest’? Competition Commission of India (CCI)
  390. In order to be useful, market segments must have each of the following characteristics except: Accessibility
  391. Mass media has the maximum impact at which stage of consumer adoption process. Awareness
  392. Pricing decisions are most complex at which stage of the product life cycle? Maturity stage
  393. Industrial buyers are likely to be most responsive to ______ appeal. Rational
  394. Indicate the true statement: As a tool of promotion, public relations can be more cost-effective than advertising
  395. Who observed in 54 of the cases studied that high morale related to high productivity in 11 of the cases high morale was associated with low productivity and in 35% of the cases there was no relationship between morale and productivity? Frederick Herzberg
  396. Who developed the goal-setting theory of motivation? Edwin Locke
  397. Which of the following concepts, involves setting objectives and comparing performance against those objectives? Management by Objectives
  398. The career development cycle includes: Exploratory stage → Establishment stage → Maintenance stage → Stage of Decline
  399. It is a mental condition or attitudes of individuals and groups which determine their willingness to cooperate. Morale
  400. Which of the following most appropriately describes the meaning of the term ‘option forward’? Forward contract entered into for buying or selling over a period of time Solved MCQs of Commerce
  401. ‘Dual adaptation strategy’, in the context of international product decisions, means: Modification of product and the marketing communication to suit the foreign markets
  402. The main promoter of international trade liberalisation GATT – WTO
  403. The most common trade barrier faced by a multinational company is the Tariff
  404. Exchange Rate System where the Central Bank intervenes to smoothen out the exchange rate fluctuations is termed as Managed float
  405. Mr. X, after about 20 years’ stay in India, returns to America on January 29, 2009. He came to India in June 2011. His residential status for the Assessment year 2012-13 will be Ordinarily Resident
  406. Mr. X retired from a Pvt. Ltd. Company on 31-3-2011. The company paid Rs. 80,000 in lieu of commutation of 25 percent of pension on 31-01-2012, but does not pay any gratuity to its employees. The amount taxable as commuted pension for the Assessment Year 2012-13 is: Nil
  407. Consider the following: The book profit of a firm of Chartered Accountants, which satisfies all the conditions of Section 184 and Section 40(b), for the year ended 31-3-2012, is Rs. 72,190. The actual remuneration paid to the partners for the year is Rs. 1,56,000. The amount of remuneration permissible under Sec: 40(b) is: Rs. 1,50,000
  408. ‘Winman’, software can be used for (A) Preparation of Balance Sheet (B) Computation of Income Tax (C) Filing of e-Returns (D) All of the above


All the data for Solved MCQs of Commerce test preparation have been compiled very carefully. Still, there remain chances of correction. Therefore, your comments on the given information for correction are welcome.

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