Paper 2 — Commerce · Shift 1

100 questions with the answer key and explanations.

Question 1
What is the correct sequence to be followed for the following while computing income under the head Capital Gains?

A. Deduction of indexed cost of acquisition
B. Determination of full value of consideration
C. Determination whether the asset is a capital asset or not
D. Determination whether the transaction is regarded as transfer or not
E. Exemption under section 54EC in respect of investment in the long-term specified asset

Choose the correct answer from the options given below:
1. AB, A, C, E, D
2. BE, A, D, C, B
3. CD, B, C, A, E
4. DC, D, B, A, E
Answer: (D) C, D, B, A, E
Explanation
Computing capital gains requires establishing statutory taxability before calculating quantitative figures and deductions.

Step 1 (C): Determine whether the underlying asset qualifies as a capital asset under Section 2(14).

Step 2 (D): Verify whether the transaction constitutes a legal transfer under Section 2(47).

Step 3 (B): Ascertain the full value of consideration received or accruing from the transfer.

Step 4 (A): Deduct expenditure on transfer, indexed cost of acquisition, and indexed cost of improvement under Section 48.

Step 5 (E): Deduct permissible capital gains exemptions such as Section 54EC for specified infrastructure bonds.

Distractor analysis:

Option A incorrectly starts with computation of consideration before establishing whether the asset is taxable.

Option B places the final exemption first before computing gross gains.

Option C examines transfer before verifying if the property is a capital asset.
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Question 2
Which one of the following selection tests answers the question "Does this test measure what it's supposed to measure"?
1. AContent validity
2. BCriterion validity
3. CContruct validity
4. DTest validity
Answer: (D) Test validity
Explanation
Test validity represents the broad psychometric requirement that a selection procedure measures the specific trait or capability it is intended to evaluate.

In human resource management literature, test validity directly addresses the fundamental question of whether the test actually measures what it is designed to measure.

Distractor analysis:

Content validity measures whether the test constitutes a representative sample of job tasks.

Criterion validity demonstrates a statistically significant relationship between test scores and actual job performance.

Construct validity shows that a selection tool assesses an underlying unobservable psychological trait.
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Question 3
Which among the following is the correct value of Income Elasticity of Petrol consumption from the following information?

The Government announces a 10 per cent dearness allowance to its employees. As a result, average monthly salary of Government employees increases from ₹20,000 to ₹22,000. Following the pay hike, monthly petrol consumption of government employees increased from 150 litres per month to 165 litres per month:
1. A0.5
2. B1
3. C2
4. D0.1
Answer: (B) 1
Explanation
Income elasticity of demand measures the responsiveness of quantity demanded to a proportionate change in income.

Percentage change in income:
((22000 - 20000) / 20000) * 100 = 10%

Percentage change in petrol consumption:
((165 - 150) / 150) * 100 = 10%

Income Elasticity of Demand (Ey):
10% / 10% = 1

Distractor analysis:

Option A (0.5) understates the response by halving the consumption growth.

Option C (2) erroneously doubles the true ratio.

Option D (0.1) mistakes the percentage decimal form for the elasticity coefficient.
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Question 4
Where there is an unconditional contract for the sale of specific goods in a deliverable state, the property (ownership) in goods passes to the buyer when
1. Athe contract is made
2. Bthe payment is made
3. Cthe goods are delivered
4. Dthe goods are dispatched
Answer: (A) the contract is made
Explanation
Under Section 20 of the Sale of Goods Act 1930, property in specific goods in a deliverable state transfers to the buyer immediately upon contract formation.

Passing of title occurs when the contract is executed regardless of whether delivery or payment is postponed.

Distractor analysis:

Option B is incorrect because payment terms do not postpone title transfer in unconditional contracts.

Option C is incorrect because physical possession is distinct from ownership under the Act.

Option D is incorrect because dispatch relates to delivery performance rather than passing of title.
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Question 5
Which one of the following is a correct assumption of Law of Diminishing Returns to a variable Input ?
1. ALabour and Capital are the only variable inputs
2. BThe units of Labour and Capital are homogeneous
3. CThe state and technology is not given
4. DInput prices are given
Answer: (D) Input prices are given
Explanation
The Law of Diminishing Returns assumes that factor market prices remain constant and given to isolate the technological output response of variable factor additions.

Assumptions of the law:

Factor prices are constant and given in the factor market.

State of technology is fixed and given, not changing.

Units of the variable input are homogeneous.

Only one input varies while all other production factors remain fixed.

Distractor analysis:

Option A is incorrect because the short-run law holds only one factor variable while keeping others fixed.

Option B is incorrect because fixed factors such as capital equipment are not homogeneous with variable labour.

Option C is incorrect because technology must be constant and given for the law to operate.
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Question 6
Match List-I with List-II.
Distribution curve shapes for List-I matched with distribution types in List-II.
1. AA-III, B-IV, C-I, D-II
2. BA-II, B-IV, C-I, D-III
3. CA-III, B-I, C-IV, D-II
4. DA-IV, B-I, C-III, D-II
Answer: (A) A-III, B-IV, C-I, D-II
Explanation
Curve shapes directly reveal the skewness and kurtosis characteristics of statistical distributions.

Curve A has an elongated tail extending to the left, which indicates a negatively skewed distribution (III).

Curve B displays a sharp, tall central peak with heavy tails, which defines a leptokurtic distribution (IV).

Curve C displays a broad, flat-topped peak, which defines a platykurtic distribution (I).

Curve D has an elongated tail extending to the right, which indicates a positively skewed distribution (II).

Distractor analysis:

Option B misidentifies Curve A as positively skewed and Curve D as negatively skewed.

Option C swaps the kurtosis classifications between platykurtic and leptokurtic.

Option D incorrectly assigns leptokurtic to Curve A and platykurtic to Curve B.
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Question 7
Which of the following factors constitute the Economic Environment of a country?

A. Financial System
B. Socio-cultural environment
C. Economic Policies
D. Educational environment
E. Structural Equilibrium

Choose the correct answer from the options given below:
1. AA, B & C only
2. BA, C & E only
3. CB, D & E only
4. DC, D & E only
Answer: (B) A, C & E only
Explanation
The economic environment encompasses institutional frameworks, policy levers, and macroeconomic structures that govern economic activity.

Constituents of economic environment:

Financial System (A): Comprises banking, capital markets, and credit institutions facilitating capital flows.

Economic Policies (C): Encompasses fiscal, monetary, trade, and industrial regulations enacted by government.

Structural Equilibrium (E): Denotes macroeconomic balance across production sectors and savings-investment parity.

Distractor analysis:

Socio-cultural environment (B) belongs to the social and cultural environment rather than economic systems.

Educational environment (D) forms part of demographic and human resource infrastructure.

Options A, C, and D mistakenly group non-economic social elements into economic environment.
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Question 8
Which of the following are the assumptions of Gordon's dividend-capitalization model?

A. No taxes
B. Cost of capital is less than the growth rate
C. No internal financing
D. Constant retention
E. Constant cost of capital

Choose the correct answer from the options given below:
1. AA, B & D only
2. BB, C & E only
3. CA, C & D only
4. DA, D & E only
Answer: (D) A, D & E only
Explanation
Gordon's dividend capitalization model assumes an all-equity firm with stable financial policies in a frictionless capital market.

Key model assumptions:

No taxes exist, treating corporate and personal incomes equally (A).

The retention ratio (b) and rate of return (r) are constant, producing a constant growth rate g = b * r (D).

Cost of capital (Ke) is constant and strictly exceeds the growth rate (Ke > g) to ensure a finite positive share price (E).

Distractor analysis:

Statement B is incorrect because Gordon requires Ke > g, so cost of capital cannot be less than growth rate.

Statement C is incorrect because Gordon explicitly assumes all financing is internal through retained earnings with zero debt or fresh equity.

Options A, B, and C include either B or C which violate the model core formulation.
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Question 9
Arrange the following theories of Profit in order of time when these were propounded from oldest to latest -

A. Hawley's Risk Theory of profit
B. Walker's Theory of Profit: Profit as Rent of Ability
C. Clerk's Dynamic Theory of Profit
D. Schumpeter's Innovation Theory of Profit
E. Knight's Theory of Profit

Choose the correct answer from the options given below:
1. AA, C, D, B, E
2. BB, C, A, D, E
3. CE, B, C, D, A
4. DB, C, A, E, D
Answer: (B) B, C, A, D, E
Explanation
Profit theories developed chronologically as economists advanced beyond classical residual wages to dynamic and uncertainty-based perspectives.

Chronological timeline:

Francis A. Walker propounded the Rent of Ability theory in 1887 (B).

John Bates Clark formulated the Dynamic Theory of Profit in 1899-1900 (C).

Frederick B. Hawley introduced the Risk Theory of Profit in his 1893 and 1907 works (A).

Joseph Schumpeter propounded the Innovation Theory of Profit in 1911 (D).

Frank H. Knight published Risk, Uncertainty and Profit in 1921 (E).

Distractor analysis:

Option A places Hawley ahead of Walker and Clark.

Option C inverts the timeline by placing Knight in 1921 as the earliest theory.

Option D places Knight in 1921 ahead of Schumpeter in 1911.
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Question 10
Which one of the following is standard deviation of first 7 (1 to 7) natural numbers?
1. A4
2. B3
3. C2
4. D6
Answer: (C) 2
Explanation
The standard deviation of the first n natural numbers is computed using the closed-form algebraic formula.

Formula:
sigma = sqrt((n^2 - 1) / 12)

Calculation for n = 7:
sigma = sqrt((7^2 - 1) / 12)
sigma = sqrt((49 - 1) / 12)
sigma = sqrt(48 / 12)
sigma = sqrt(4) = 2

Distractor analysis:

Option A (4) corresponds to the mean of the first 7 natural numbers ((7 + 1) / 2 = 4).

Option B (3) results from miscalculating the variance fraction.

Option D (6) represents the range of the numbers (7 - 1 = 6).
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Question 11
Which of the following methods have been prescribed by the Central Board of Direct Taxes (CBDT) for computation of Arm's Length Price required to compute income arising from an International transaction under Chapter X of the Income-tax Act, 1961?

A. Transactional Net Margin Method
B. Uncomparable Controlled Price Method
C. Profit Split Method
D. Resale Price Method
E. Cost Minus Method

Choose the correct answer from the options given below:
1. AB, D & E Only
2. BA, B & D Only
3. CC, D & E Only
4. DA, C & D Only
Answer: (D) A, C & D Only
Explanation
Section 92C of the Income-tax Act 1961 and Rule 10B prescribe five statutory methods to compute the Arm's Length Price in international transactions.

Statutory methods prescribed:

Transactional Net Margin Method (A)

Profit Split Method (C)

Resale Price Method (D)

Comparable Uncontrolled Price Method

Cost Plus Method

Distractor analysis:

B is invalid because the statutory method is Comparable Uncontrolled Price Method, not Uncomparable Controlled Price.

E is invalid because the statutory method is Cost Plus Method, not Cost Minus.

Options A, B, and C include either distractor B or distractor E.
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Question 12
In WTO terminology, subsidies in general are identified by "boxes". Domestic support measure considered to distort production and trade, which is defined in Article 6 of the Agriculture Agreement falls into which box?
1. AAmber Box
2. BJumbo Box
3. CGreenfield Box
4. DBlack Box
Answer: (A) Amber Box
Explanation
Article 6 of the WTO Agreement on Agriculture classifies all domestic support measures that distort production and international trade under the Amber Box.

Amber Box subsidies include price supports and direct production subsidies and are subject to reduction commitments under Aggregate Measurement of Support limits.

Distractor analysis:

Jumbo Box is an invented term with no legal standing in WTO trade policy.

Greenfield Box is a distractor conflating greenfield investment with subsidy boxes.

Black Box is an invented category not recognized in WTO subsidy classification.
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Question 13
If two regression lines are : 8x-10y+66=0 and 40x-18y=214, then x̄ & Ȳ are respectively
1. A13, 14
2. B16, 15
3. C14, 13
4. D13, 17
Answer: (D) 13, 17
Explanation
Regression lines always intersect at the mean values of the variables (x̄, Ȳ), enabling their determination by solving the equations simultaneously.

Given equations:
8x̄ - 10Ȳ = -66
40x̄ - 18Ȳ = 214

Multiply the first equation by 5:
40x̄ - 50Ȳ = -330

Subtract from the second equation:
(40x̄ - 18Ȳ) - (40x̄ - 50Ȳ) = 214 - (-330)
32Ȳ = 544
Ȳ = 17

Substitute Ȳ = 17 into the first equation:
8x̄ - 10(17) = -66
8x̄ - 170 = -66
8x̄ = 104
x̄ = 13

Distractor analysis:

Option A (13, 14) miscomputes Ȳ while keeping x̄ correct.

Option B (16, 15) fails to satisfy either regression equation.

Option C (14, 13) transposes coordinate values with calculation errors.
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Question 14
The rate of diffusion of any innovation depends upon the following factors:

A. The relative advantage of the innovation over previous solutions
B. The compatibility of the innovation with existing values and norms
C. A lack of complexity in using the innovation
D. The divisibility of the innovation facilitating low-risk trial
E. The communicability of the advantages of the innovation

Choose the correct answer from the options given below:
1. AA, C & E Only
2. BA, B, C & E only
3. CA, B, C, D & E
4. DB & D Only
Answer: (C) A, B, C, D & E
Explanation
Everett Rogers identified five perceived attributes of an innovation that govern its speed and adoption rate through a social system.

Five Rogers attributes:

Relative Advantage (A): Extent to which the innovation is perceived as superior to existing alternatives.

Compatibility (B): Alignment with existing sociocultural values, past experiences, and user needs.

Simplicity or Lack of Complexity (C): Ease of understanding and executing the innovation.

Trialability or Divisibility (D): Degree to which an innovation can be tried on a limited basis.

Observability or Communicability (E): Clarity and visibility of the innovation benefits to prospective adopters.

Distractor analysis:

Options A, B, and D omit essential attributes such as trialability and compatibility that Rogers establishes as core determinants.
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Question 15
Import of service means:

A. Supplier of service is located in India
B. Supplier of service is located outside India
C. Recipient of service is located in India
D. Recipient of service is located outside India
E. Place of Supply of service is in India

Choose the correct answer from the options given below:
1. AA, B & E only
2. BA, D & E only
3. CB, D & E only
4. DB, C & E only
Answer: (D) B, C & E only
Explanation
Under Section 2(11) of the Integrated Goods and Services Tax (IGST) Act 2017, import of service requires three concurrent jurisdictional conditions.

Statutory requirements:

The supplier of service must be located outside India (B).

The recipient of service must be located in India (C).

The place of supply of service must be determined to be within India (E).

Distractor analysis:

Statement A contradicts the definition because an Indian supplier constitutes a domestic supply.

Statement D is incorrect because an overseas recipient constitutes an export or offshore transaction.

Options A, B, and C contain either A or D which invalidate the import classification.
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Question 16
Arrange the following content theories of work motivation in the increasing order of their development -

A. Herzberg-motivation and hygiene factors
B. Alderfer ERG Needs
C. Maslow-Hierarchy of Needs
D. Scientific Management
E. Human Relations

Choose the correct answer from the options given below:
1. AD, C, E, A, B
2. BD, E, C, A, B
3. CB, C, A, D, E
4. DD, E, A, C, B
Answer: (B) D, E, C, A, B
Explanation
Motivation and organizational behavior theories developed sequentially through classical, behavioral, and contemporary paradigms.

Historical progression:

Scientific Management by F.W. Taylor originated in the 1910s (D).

Human Relations Movement by Elton Mayo emerged from the Hawthorne studies in the 1930s (E).

Maslow Hierarchy of Needs was published in 1943 (C).

Herzberg Motivation-Hygiene Dual Factor Theory was formulated in 1959 (A).

Alderfer ERG Needs Model was introduced in 1969 (B).

Distractor analysis:

Option A places Maslow in 1943 ahead of the Human Relations movement of the 1930s.

Option C reverses the timeline by putting Alderfer first.

Option D incorrectly places Herzberg ahead of Maslow.
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Question 17
Which of the following condition is NOT required to be satisfied by an individual for the purpose of claiming unilateral relief under section 91(1) of the Income-tax Act, 1961, in a previous year?
1. AHe must be resident in India in that previous year
2. BHis total income exceeds ₹10,00,000 during that previous year
3. CHe has earned an income during that previous year from another country and that income has accrued or arose outside India
4. DHe has paid income-tax in that country on the income earned in that country and no Double Taxation Avoidance Agreement (DTAA) exists between India and that country
Answer: (B) His total income exceeds ₹10,00,000 during that previous year
Explanation
Section 91(1) of the Income-tax Act 1961 provides unilateral double taxation relief without imposing any minimum total income threshold.

Mandatory conditions under Section 91(1):

The assessee must be resident in India during the relevant previous year.

Income must accrue or arise outside India in a foreign country.

Income tax must have been actually paid in that foreign country on the overseas income.

No comprehensive Double Taxation Avoidance Agreement (DTAA) under Section 90 exists between India and that foreign country.

Distractor analysis:

Options A, C, and D are explicit statutory requirements under Section 91(1).

Option B is completely absent from the statute and is not required for unilateral relief.
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Question 18
Which one of the following theory of capital structure discusses Arbitrage Process?
1. ATraditional Approach
2. BModigliani and Miller (MM) Approach
3. CNet Operating Income (NOI) Approach
4. DNet Income (NI) Approach
Answer: (B) Modigliani and Miller (MM) Approach
Explanation
The Modigliani-Miller theorem relies on the operational mechanism of home-made leverage and the arbitrage process to prove capital structure irrelevance.

Investors eliminate valuation discrepancies between levered and unlevered firms in the same risk class by switching shares until market values equilibrate.

Distractor analysis:

Traditional Approach posits an optimal capital structure based on balancing debt tax shields against financial distress without arbitrage.

Net Operating Income Approach assumes total firm value is constant without detailing an active arbitrage mechanism.

Net Income Approach argues that debt financing continually reduces overall cost of capital.
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Question 19
Match List-I with List-II.
List-I (Personality Traits) List-II (Descriptive Characteristics)
A. Conscientiousness I. Outgoing
B. Agreeableness II. Caring
C. Extraversion III. Creative
D. Openness to experience IV. Dependable
1. AA-III, B-II, C-I, D-IV
2. BA-IV, B-II, C-III, D-I
3. CA-IV, B-II, C-I, D-III
4. DA-I, B-II, C-III, D-IV
Answer: (C) A-IV, B-II, C-I, D-III
Explanation
The Big Five personality model organizes human behavioral traits into five distinct dimensions.

Conscientiousness reflects self-discipline, organization, and being dependable (IV).

Agreeableness reflects warmth, cooperativeness, and being caring toward others (II).

Extraversion reflects sociability, assertiveness, and being outgoing (I).

Openness to experience reflects imagination, curiosity, and being creative (III).

Distractor analysis:

Option A matches Conscientiousness to creative and Openness to dependable.

Option B matches Extraversion to creative and Openness to outgoing.

Option D inverts Conscientiousness and Extraversion pairings.
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Question 20
Match List-I with List-II.
List-I (Ind AS) List-II (Related)
A. Ind AS-12 I. Leases
B. Ind AS-17 II. Borrowing Costs
C. Ind AS-19 III. Employee Benefits
D. Ind AS-23 IV. Income Taxes
1. AA-IV, B-I, C-III, D-II
2. BA-III, B-II, C-IV, D-I
3. CA-I, B-IV, C-III, D-II
4. DA-IV, B-III, C-I, D-II
Answer: (A) A-IV, B-I, C-III, D-II
Explanation
Indian Accounting Standards (Ind AS) align domestic accounting standards with International Financial Reporting Standards (IFRS).

Ind AS 12 prescribes the accounting treatment for Income Taxes, including current and deferred tax (IV).

Ind AS 17 governed Leases prior to supersession by Ind AS 116 (I).

Ind AS 19 outlines accounting and disclosure requirements for Employee Benefits (III).

Ind AS 23 establishes the principles for capitalizing Borrowing Costs on qualifying assets (II).

Distractor analysis:

Option B matches Ind AS 12 to employee benefits and Ind AS 17 to borrowing costs.

Option C matches Ind AS 12 to leases and Ind AS 17 to income taxes.

Option D matches Ind AS 17 to employee benefits and Ind AS 19 to leases.
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Question 21

Match List-I with List-II.

List-I (Macro Level Organizational Stressors)	List-II (Examples)
A. Administrative Policies and Strategies	I. Crowded work area
B. Organizational Structure and Design	II. Merit Pay Plans
C. Organizational Processes	III. No opportunity for advancement
D. Working Conditions	IV. Lack of participation in decisions

AA-II, B-III, C-IV, D-I
BA-III, B-II, C-IV, D-I
CA-II, B-IV, C-III, D-I
DA-IV, B-I, C-II, D-III

Answer: (A) A-II, B-III, C-IV, D-I

Explanation

Macro-level organizational stressors arise from systemic administrative frameworks, design architectures, and environmental conditions.

Administrative Policies and Strategies are exemplified by rigid or competitive Merit Pay Plans (II).
Organizational Structure and Design creates stress when tall hierarchies yield No opportunity for advancement (III).
Organizational Processes lead to role alienation through Lack of participation in decisions (IV).
Working Conditions directly reflect physical environmental constraints such as a Crowded work area (I).

Distractor analysis:

Option B pairs Administrative Policies with lack of advancement and Structure with merit pay.
Option C swaps Processes with Structure.
Option D misallocates Working Conditions to advancement opportunities.

Question 22
Which one of the following is NOT an issue (to be tackled) of conceptual component of a CRM programme?
1. AChoosing the technology
2. BSetting out the objectives in clear terms
3. CProcessing all customer requests coming in through multiple channels
4. DPutting customers first
Answer: (A) Choosing the technology
Explanation
The conceptual component of Customer Relationship Management (CRM) deals with corporate philosophy, customer-centric culture, and strategic goals.

Choosing the technology belongs to the technical and operational infrastructure component rather than the conceptual foundation.

Distractor analysis:

Setting out objectives in clear terms (Option B) is a core strategic requirement of the conceptual framework.

Processing customer requests across touchpoints (Option C) represents the conceptual service philosophy of seamless relationship delivery.

Putting customers first (Option D) constitutes the defining cultural ethos of CRM conceptual design.
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Question 23
In international trade, factoring is widely used in short-term transactions as a continuous arrangement. Arrange the steps of export factoring operations in sequence -

A. The export factor transfers the invoice to the import factor, who, in return, assumes credit risk and undertakes administration of receivable.
B. The export factor pays cash in advance to the exporter against receivables until the payment is received from the importer.
C. The importer and exporter enter into a sales contract and agree on the terms of sale.
D. The import factor presents invoice to importer, take payment and pays to the export factor.
E. The exporter ships the goods to the importer and submits the invoice to the export factor.

Choose the correct answer from the options given below:
1. AE, A, B, D, C
2. BE, B, A, D, C
3. CC, B, E, D, A
4. DC, E, B, A, D
Answer: (D) C, E, B, A, D
Explanation
Export factoring follows a defined procedural sequence across the exporter, importer, export factor, and import factor.

Operational steps in sequence:

Step 1 (C): Importer and exporter enter into a sales contract agreeing on credit terms and factoring.

Step 2 (E): Exporter manufactures and ships goods to the importer and assigns the invoice to the export factor.

Step 3 (B): Export factor provides prepayment in cash to the exporter against approved receivables.

Step 4 (A): Export factor transmits invoice details to the import factor for credit protection and ledger administration.

Step 5 (D): Import factor presents the invoice to the importer at maturity, collects proceeds, and remits payment to the export factor.

Distractor analysis:

Option A begins with shipping prior to contractual sales agreement.

Option B attempts shipment before commercial terms are established.

Option C places cash advance ahead of shipping goods and submitting invoices.
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Question 24
Compute the after-tax cost of capital of a company in case a perpetual bond (face value is ₹100) is sold as well as redeemed at par having coupon rate of interest being 7% and corporate tax rate is 30%.
1. A2.1%
2. B4.9%
3. C7%
4. D10%
Answer: (B) 4.9%
Explanation
The after-tax cost of perpetual debt accounts for the tax deductibility of contractual interest expenses.

Formula:
Kd = (Interest * (1 - Tax Rate)) / Net Proceeds

Values:
Face Value = ₹100
Net Proceeds = ₹100
Annual Coupon Interest = 7% of ₹100 = ₹7
Corporate Tax Rate = 30% (0.30)

Calculation:
Kd = (7 * (1 - 0.30)) / 100
Kd = (7 * 0.70) / 100
Kd = 4.9 / 100 = 4.9%

Distractor analysis:

Option A (2.1%) erroneously multiplies interest by the tax rate alone (7% * 0.30 = 2.1%).

Option C (7%) represents pre-tax cost of debt without adjusting for tax shields.

Option D (10%) mistakenly adds tax to the coupon rate.
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Question 25
Arrange the steps of Sampling Design in a form of questions that are to be answered in securing a sample -

A. What is the appropriate sampling method?
B. What are the parameters of interest?
C. What size sample is needed?
D. What is the target population?
E. What is the sampling frame?

Choose the correct answer from the options given below:
1. AE, D, B, A, C
2. BB, E, A, C, D
3. CC, B, A, E, D
4. DD, B, E, A, C
Answer: (D) D, B, E, A, C
Explanation
Sampling design advances logically from defining the broader universe down to statistical estimation parameters and sample selection.

Sampling sequence:

Step 1 (D): What is the target population? Define the target universe of study units.

Step 2 (B): What are the parameters of interest? Specify the population characteristics to be measured.

Step 3 (E): What is the sampling frame? Identify the operational list or database representing the population.

Step 4 (A): What is the appropriate sampling method? Select probability or non-probability sampling techniques.

Step 5 (C): What size sample is needed? Compute sample size based on statistical power, precision, and variance.

Distractor analysis:

Option A attempts to construct a sampling frame prior to defining the population.

Option B identifies parameters before determining the population under investigation.

Option C computes sample size before establishing population boundaries or sampling methodology.
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Question 26
The Narasimhan Committee 1991 recommended the reforms with respect to the banking sector. These reforms are also known as:
1. AFirst generation reforms
2. BSecond generation reforms
3. CFinancial sector reforms
4. DThird generation reforms
Answer: (A) First generation reforms
Explanation
The Committee on the Financial System appointed in 1991 under M. Narasimham laid the foundation for First Generation financial sector reforms in India.

These initial reforms phased down reserve ratios (CRR and SLR), introduced prudential accounting norms for income recognition and asset classification, and permitted private sector entry into banking.

Distractor analysis:

Second generation reforms (Option B) refers to the 1998 Committee on Banking Sector Reforms also headed by M. Narasimham.

Financial sector reforms (Option C) is a broad umbrella term rather than the specific generational phase designation.

Third generation reforms (Option D) relates to modern digital banking and resolution architecture.
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Question 27
Which one of the following is NOT a marketing principle?
1. AFocus on customer
2. BMarkets are homogeneous
3. CCustomers do not buy products
4. DMarketing is too important to leave to the marketing department
Answer: (B) Markets are homogeneous
Explanation
Modern marketing theory establishes that markets are inherently heterogeneous, characterized by diverse consumer needs, preferences, and purchasing power.

Because markets are heterogeneous, segmentation, targeting, and positioning are foundational principles of marketing strategy.

Distractor analysis:

Focus on customer (Option A) is the central premise of the marketing concept.

Customers do not buy products (Option C) reflects Theodore Levitt's insight that buyers purchase benefits, solutions, and satisfaction rather than physical goods.

Marketing is too important to leave to the marketing department (Option D) is David Packard's recognized principle establishing enterprise-wide marketing orientation.
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Question 28

Match List-I with List-II.

List-I (Pricing Strategies)	List-II (Their Explanation)
A. Skimming Price Policy	I. Where the nature of the products are non-storable
B. Penetration Price Policy	II. Where close substitutes of a new product are not available
C. Peak Load Pricing Policy	III. Exporting goods at a price lower than the domestic price
D. Dumping Pricing Policy	IV. Substitutes of new products are available

AA-III, B-II, C-I, D-IV
BA-IV, B-III, C-II, D-I
CA-I, B-III, C-II, D-IV
DA-II, B-IV, C-I, D-III

Answer: (D) A-II, B-IV, C-I, D-III

Explanation

Pricing strategies align pricing structures with competitive conditions, product lifecycle stages, and demand characteristics.

Skimming Price Policy sets premium initial prices where close substitutes of a new product are not available (II).
Penetration Price Policy sets low introductory prices where substitutes of new products are available to rapidly capture volume (IV).
Peak Load Pricing Policy charges higher prices during capacity-constrained peak intervals where the nature of the products are non-storable (I).
Dumping Pricing Policy involves international price discrimination by exporting goods at a price lower than the domestic price (III).

Distractor analysis:

Option A incorrectly links skimming to dumping and penetration to absence of substitutes.
Option B links skimming to presence of substitutes and dumping to non-storable goods.
Option C confuses peak load pricing with skimming policy.

Question 29
For the purpose of taking Capital Budgeting Decisions in respect of a company in India, following are taken into consideration in computing cash flows in the terminal year of the project:

A. Tax loss on short-term capital gains
B. Tax loss on short-term capital loss
C. Release of net working capital
D. Tax saving on short-term capital loss
E. Tax saving on short-term capital gains

Choose the correct answer from the options given below:
1. AA, C & D only
2. BB, C & E only
3. CC & E only
4. DB & E only
Answer: (A) A, C & D only
Explanation
Terminal cash flows in capital budgeting capture final non-operating cash inflows and tax effects arising from project liquidation.

Components considered in terminal year:

Release of net working capital (C) originally committed to the project.

Tax savings on short-term capital loss (D) when salvage realization is less than written down value.

Tax liability on short-term capital gains (A), which represents a cash outflow (tax loss to the firm).

Distractor analysis:

Capital gains create tax payments rather than tax savings, making E false.

Capital losses provide tax shields rather than incurring tax loss, making B false.

Options B, C, and D incorrectly include E or B.
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Question 30
For test hypothesis H₀: μ₁ ≤ μ₂ and H₁ : μ₁ > μ₂, the critical region (Z) at α = 0.10 and n > 30 will be
1. AZ ≤ 1.96
2. BZ > 1.96
3. CZ > 1.645
4. DZ ≤ -1.645
Answer: (C) Z > 1.645
Explanation
The alternative hypothesis H₁: μ₁ > μ₂ specifies a right-tailed statistical test where the rejection region lies entirely in the upper tail of the standard normal distribution.

For large samples (n > 30), critical values from the standard normal distribution apply.

Among the options provided, the upper-tail critical region format requiring rejection when Z exceeds the positive critical boundary is Z > 1.645.

Distractor analysis:

Option A defines an acceptance region instead of a critical rejection region.

Option B corresponds to a stricter 2.5% tail probability (Z > 1.96).

Option D represents a left-tailed critical region for a test with alternative hypothesis H₁: μ₁ < μ₂.
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Question 31
Arrange the following sequentially with respect to operating cycle of a manufacturing firm -

A. Payables Deferral Period
B. Finished Goods Conversion Period
C. Raw Material Conversion Period
D. Receivables Conversion Period
E. Work-in-progress Conversion Period

Choose the correct answer from the options given below:
1. AA, D, C, E, B
2. BC, E, B, D, A
3. CB, D, A, E, C
4. DD, B, E, A, C
Answer: (B) C, E, B, D, A
Explanation
The operating and cash cycle of a manufacturing firm follows the physical and financial transformation of production inputs into cash realization.

Sequential phases:

Phase 1 (C): Raw Material Conversion Period, from material purchase to introduction into production.

Phase 2 (E): Work-in-progress Conversion Period, representing duration in active factory processing.

Phase 3 (B): Finished Goods Conversion Period, holding time until finished stock is sold.

Phase 4 (D): Receivables Conversion Period, collection duration from credit sales.

Phase 5 (A): Payables Deferral Period, credit term granted by suppliers, subtracted to determine net cash cycle.

Distractor analysis:

Option A starts with payables deferral before material acquisition.

Option C places finished goods ahead of raw material processing.

Option D starts with receivables before goods are manufactured.
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Question 32
RBI permitted the issue of commercial papers within the framework of its guidelines. Which one of the following committee recommended these guidelines?
1. AVaghul Committee
2. BChakravarty Committee
3. CPadmnabhan Committee
4. DNarasimham Committee
Answer: (A) Vaghul Committee
Explanation
Commercial Paper (CP) was introduced into the Indian money market in January 1990 following recommendations of the Vaghul Committee.

The Working Group on the Money Market chaired by N. Vaghul in 1987 recommended CP to enable highly rated corporate borrowers to diversify their short-term borrowing sources.

Distractor analysis:

Chakravarty Committee (1985) examined monetary system review and recommended monetary targeting.

Padmanabhan Committee (1995) reviewed the banking supervision system.

Narasimham Committee (1991) focused on structural banking reforms and prudential regulations.
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Question 33
The price of a company's share is ₹80 and the value of growth opportunities is ₹20. If the company's capitalisation rate is 15%, how much is the EPS?
1. A₹20
2. B₹12
3. C₹3
4. D₹9
Answer: (D) ₹9
Explanation
Under corporate valuation theory, a firm's equity share price equals the sum of its zero-growth earnings capitalisation value and the Present Value of Growth Opportunities (PVGO).

Valuation formula:
P0 = (EPS / Ke) + PVGO

Given values:
P0 = ₹80
PVGO = ₹20
Ke = 15% = 0.15

Calculation:
80 = (EPS / 0.15) + 20
EPS / 0.15 = 80 - 20
EPS / 0.15 = 60
EPS = 60 * 0.15 = ₹9

Distractor analysis:

Option A (₹20) confuses EPS with the PVGO figure.

Option B (₹12) calculates 15% of the total share price of ₹80 (80 * 0.15 = 12).

Option C (₹3) calculates 15% of the ₹20 PVGO.
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Question 34
What is the correct sequence to be followed for the following transactions undertaken by an individual while computing his gross total income as per the Income-tax Act, 1961?

A. Investment in own public provident fund
B. Investment in one residential house in India for exemption from capital gains
C. Interest on capital borrowed for purchasing a self-occupied house property
D. Tax on employment
E. Payment of Medical insurance premium on his own life

Choose the correct answer from the options given below:
1. AC, B, D, E, A
2. BD, C, B, A, E
3. CE, A, D, B, C
4. DB, C, E, A, D
Answer: (B) D, C, B, A, E
Explanation
Computing total income under the Income-tax Act 1961 proceeds head-by-head under Section 14 before applying Chapter VI-A deductions.

Sequential computation order:

Head 1 (Salaries): Tax on employment under Section 16(iii) deduction (D).

Head 2 (House Property): Interest on borrowed capital under Section 24(b) (C).

Head 4 (Capital Gains): Investment in residential house for Section 54 exemption (B).

Chapter VI-A Deduction 1: Section 80C investment in Public Provident Fund (A).

Chapter VI-A Deduction 2: Section 80D payment of medical insurance premium (E).

Distractor analysis:

Option A places House Property deductions before Salaries.

Option C places medical insurance deduction ahead of salary income.

Option D places Capital Gains exemptions ahead of Salaries and House Property.
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Question 35
WTO in its 8th Ministerial conference adopted a decision allowing members to waive the provisions of Article II (most favored-National Treatment) of the GATS to allow the granting of preferential treatment to services and service supplies to which countries?
1. AAdjacent Countries
2. BNon-Nuclear Countries
3. CLeast-Developed Countries
4. DSAARC Countries
Answer: (C) Least-Developed Countries
Explanation
At the WTO 8th Ministerial Conference in Geneva in December 2011, members adopted a landmark waiver enabling preferential market access in services for Least-Developed Countries.

The waiver permits developed and developing WTO members to grant non-reciprocal preferential treatment to services and service suppliers of LDCs without violating the Most-Favoured-Nation obligation of Article II of GATS.

Distractor analysis:

Adjacent Countries is not a recognized WTO preference category.

Non-Nuclear Countries is a security designation with no relevance to GATS agreements.

SAARC Countries is a regional grouping rather than the multilateral WTO waiver beneficiary group.
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Question 36
Arrange the following steps of Activity Based Costing (ABC) in proper sequence -

A. Staff Training and Review Follow up
B. Identify Main Activities
C. Process specification
D. Identify Non-value adding Activity and cost pools
E. Selection of Activity Cost Drivers and Tracing of Costs with objects

Choose the correct answer from the options given below:
1. AC, B, D, E, A
2. BB, C, D, E, A
3. CD, B, C, A, E
4. DE, D, B, C, A
Answer: (A) C, B, D, E, A
Explanation
Activity Based Costing design begins with comprehensive operational process analysis and concludes with implementation training and follow-up.

Sequential implementation steps:

Step 1 (C): Process specification, mapping all organizational operational workflows.

Step 2 (B): Identify Main Activities across the specified operational processes.

Step 3 (D): Identify Non-value adding activities and aggregate overheads into activity cost pools.

Step 4 (E): Select Activity Cost Drivers and trace accumulated costs to cost objects.

Step 5 (A): Conduct Staff Training and Review Follow up for continuous system refinement.

Distractor analysis:

Option B attempts activity identification before process specification.

Option C identifies non-value adding activities before establishing the process framework.

Option D places cost driver tracing first before activities are defined.
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Question 37
Which of the following are the characteristics of a Leader?

A. Focuses on systems and structure
B. Eye on the horizon
C. Asks how and when
D. Does things right
E. Originates

Choose the correct answer from the options given below:
1. AA, B & D only
2. BB & E only
3. CB, C & D only
4. DA, B, D & E only
Answer: (B) B & E only
Explanation
Warren Bennis's classic management framework sharply contrasts the visionary focus of a leader against the administrative focus of a manager.

Contrasting leadership traits:

A leader has an eye on the horizon (B), focusing on long-range vision, whereas a manager has an eye on the bottom line.

A leader originates (E), innovating new directions, whereas a manager imitates.

A leader does the right thing, whereas a manager does things right (D).

A leader asks what and why, whereas a manager asks how and when (C).

A leader focuses on people, whereas a manager focuses on systems and structure (A).

Distractor analysis:

Characteristics A, C, and D define transactional managers rather than transformational leaders.

Options A, C, and D mistakenly include manager attributes.
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Question 38
Which one of the following is Value Added Service of EXIM Bank?
1. ALine of Credit
2. BPre-shipment Credit
3. CBuyers Credit
4. DExport Marketing Services
Answer: (D) Export Marketing Services
Explanation
Export-Import Bank of India (EXIM Bank) categorizes its offerings into financial credit lines and non-fund Value Added Advisory Services.

Export Marketing Services (EMS) operates as a value-added advisory programme assisting Indian enterprises in establishing an international presence through partner search and market research.

Distractor analysis:

Line of Credit (Option A) is a core fund-based lending facility extended to overseas sovereign entities and financial institutions.

Pre-shipment Credit (Option B) is a fund-based export financing mechanism covering production costs.

Buyers Credit (Option C) is a direct financing credit facility extended to foreign importers.
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Question 39
Which one of the following non-functional rewards does NOT fall under job design category?
1. ACompliment of work progress
2. BFlexible hours
3. CParticipation in decisions
4. DFlexible breaks
Answer: (A) Compliment of work progress
Explanation
In total reward systems, non-functional and intrinsic rewards are categorized into job design rewards, social rewards, and developmental rewards.

Compliment of work progress is a social and verbal recognition reward delivered through supervisor feedback, not a structural job design reward.

Distractor analysis:

Flexible hours (Option B) is a core job design attribute altering work scheduling and employee autonomy.

Participation in decisions (Option C) represents job enrichment through empowerment within job design.

Flexible breaks (Option D) forms part of workplace scheduling and ergonomic job design.
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Question 40
If selling price per unit is ₹56.00. Variable cost per unit is ₹32.00 and total fixed cost is ₹60,000, what is the number of units that used to be sold in order to achieve a profit of ₹84,000?
1. A6000 units
2. B8400 units
3. C5000 units
4. D6500 units
Answer: (A) 6000 units
Explanation
Target sales volume in units is determined by dividing total required contribution by unit contribution margin.

Contribution per unit:
Selling Price - Variable Cost = 56 - 32 = ₹24

Required Contribution:
Fixed Costs + Desired Profit = 60,000 + 84,000 = ₹144,000

Target Sales Volume:
144,000 / 24 = 6000 units

Distractor analysis:

Option B (8400 units) mistakenly divides target profit directly by an assumed factor.

Option C (5000 units) computes required sales if profit were only ₹60,000.

Option D (6500 units) reflects arithmetic errors in contribution calculation.
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Question 41

Match List-I with List-II.

List-I (Institutions)	List-II (Date of establishment)
A. National Housing Bank	I. 01-07-1964
B. Industrial Development Bank of India	II. 01-07-1948
C. Small Industrial Development Bank of India	III. 02-04-1990
D. Industrial Finance Corporation of India	IV. 09-07-1988

AA-I, B-II, C-III, D-IV
BA-III, B-I, C-IV, D-II
CA-I, B-IV, C-III, D-II
DA-IV, B-I, C-III, D-II

Answer: (D) A-IV, B-I, C-III, D-II

Explanation

India's development financial institutions were established across distinct post-independence decades to support specialized economic sectors.

National Housing Bank (NHB) was established on 09-07-1988 under the NHB Act 1987 (IV).
Industrial Development Bank of India (IDBI) was established on 01-07-1964 as a wholly owned subsidiary of RBI (I).
Small Industrial Development Bank of India (SIDBI) commenced operations on 02-04-1990 (III).
Industrial Finance Corporation of India (IFCI) was established on 01-07-1948 as India's first DFI (II).

Distractor analysis:

Option A links NHB to 1964 and IDBI to 1948.
Option B links NHB to 1990 and SIDBI to 1988.
Option C links NHB to 1964 and IDBI to 1988.

Question 42
Which of the following are true in case of Internal Reconstruction?

A. The existing company is liquidated
B. No new company is formed
C. There is certain reduction of capital and sometime liabilities are also reduced
D. The new company issues fresh capital
E. It is done as per section 66 of the Companies Act, 2013

Choose the correct answer from the options given below:
1. AA, D & E only
2. BA, C & E only
3. CB, C & E only
4. DB, C & D only
Answer: (C) B, C & E only
Explanation
Internal reconstruction reorganizes the financial structure of an existing company without dissolving the corporate entity.

Key features of internal reconstruction:

No new company is formed, and the existing legal entity continues operations (B).

Share capital is reduced, accumulated losses are written off, and liabilities may be negotiated down via a Capital Reduction Account (C).

Reduction of share capital is governed by Section 66 of the Companies Act 2013 (E).

Distractor analysis:

Statement A is false because company liquidation occurs in external reconstruction and amalgamation, not internal reconstruction.

Statement D is false because no new company exists to issue capital.

Options A, B, and D include either distractor A or distractor D.
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Question 43
X Ltd. incurred a capital expenditure of ₹5,00,000 for the purpose of promoting family planning amongst its employees during the assessment year 2024-25. How much deduction in respect of such expenditure can be claimed by X Ltd. during the assessment year 2024-25, while computing income under the head Profits and Gains of Business or Profession?
1. A₹5,00,000
2. B₹2,50,000
3. C₹1,00,000
4. D₹50,000
Answer: (C) ₹1,00,000
Explanation
Under Section 36(1)(ix) of the Income-tax Act 1961, corporate taxpayers can claim capital expenditure on promoting family planning amongst employees in five equal annual instalments.

Computation:
Total Capital Expenditure = ₹5,00,000
Annual Allowable Deduction = 1/5 of ₹5,00,000 = ₹1,00,000

Deduction for AY 2024-25:
₹1,00,000

Distractor analysis:

Option A (₹5,00,000) represents revenue expenditure on family planning which is deductible in full in the year incurred, unlike capital expenditure.

Option B (₹2,50,000) incorrectly applies a two-year write-off period.

Option D (₹50,000) represents a ten-year amortisation schedule.
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Question 44
Which one of the following is NOT good for bargainers while bargaining with employees?
1. ADo not hurry
2. BBuild a reputation for being fair but not firm
3. CStrive to keep some flexibility in your position
4. DRespect the importance of face saving for the other party
Answer: (B) Build a reputation for being fair but not firm
Explanation
In effective collective bargaining and labor negotiations, negotiators must build a reputation for being both fair and firm.

Being perceived as not firm signals indecisiveness and lack of resolve, encouraging union adversaries to escalate unreasonable demands.

Distractor analysis:

Do not hurry (Option A) is an established tactical guideline preventing hasty concessions.

Strive to keep flexibility (Option C) ensures bargaining room to forge workable compromises.

Respect the importance of face saving (Option D) allows the counterpart to accept agreements without loss of dignity before their constituency.
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Question 45
How much per cent of income by way of interest received on compensation or enhanced compensation is allowed as deduction while computing Income from Other Sources under the Income-tax Act, 1961?
1. A25%
2. B50%
3. C75%
4. D100%
Answer: (B) 50%
Explanation
Under Section 57(iv) read with Section 56(2)(viii) of the Income-tax Act 1961, a flat deduction of 50 per cent is allowed against interest on compensation or enhanced compensation.

The remaining 50 per cent is taxed under the head Income from Other Sources in the previous year of receipt regardless of the accounting method followed by the assessee.

Distractor analysis:

Option A (25%) is an arbitrary percentage with no statutory backing.

Option C (75%) understates the taxable portion.

Option D (100%) incorrectly treats the interest as fully exempt from income tax.
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Question 46
In which one of the following ratios, the share capital of RRBs is prescribed for the Central Government, State Government and Sponsoring bank?
1. A50:30:20
2. B50:35:15
3. C60:20:20
4. D50:15:35
Answer: (D) 50:15:35
Explanation
Section 6(2) of the Regional Rural Banks Act 1976 establishes the statutory capital subscription ratio for Regional Rural Banks.

Prescribed ownership ratio:

Central Government: 50%

State Government: 15%

Sponsor Bank: 35%

Ratio sequence:
Central Government (50) : State Government (15) : Sponsoring Bank (35)

Distractor analysis:

Option A reverses the State and Sponsor Bank proportions.

Option B swaps the 35% and 15% holdings between the state and sponsor.

Option C assigns 60% majority to the Central Government.
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Question 47

Match List-I with List-II.

List-I (Concept)	List-II (Meaning)
A. Profitability Index	I. Rate that equates the investment outlay with the present value of cash inflow received after one period
B. Accounting Rate of Return (ARR)	II. Compound average annual rate that is calculated with a reinvestment rate different than the project's IRR
C. Internal Rate of Return (IRR)	III. Rate that is computed by dividing the average profit after tax with the average investment
D. Modified Internal Rate of Return (MIRR)	IV. Ratio of the present value of cash inflows, at the required rate of return, to the initial cash outflow of the investment

AA-IV, B-III, C-I, D-II
BA-I, B-IV, C-II, D-III
CA-II, B-I, C-III, D-IV
DA-III, B-II, C-IV, D-I

Answer: (A) A-IV, B-III, C-I, D-II

Explanation

Capital budgeting appraisal criteria measure project profitability and return efficiency across accounting and discounted cash flow techniques.

Profitability Index is the Ratio of the present value of cash inflows, at the required rate of return, to the initial cash outflow of the investment (IV).
Accounting Rate of Return (ARR) is the Rate computed by dividing the average profit after tax with the average investment (III).
Internal Rate of Return (IRR) is the Rate equating investment outlay with the present value of cash inflows (I).
Modified Internal Rate of Return (MIRR) is the Compound average annual rate calculated with a reinvestment rate different than the project's IRR (II).

Distractor analysis:

Option B matches Profitability Index to single-period IRR and ARR to initial outlay ratio.
Option C pairs Profitability Index with reinvestment rate.
Option D pairs Profitability Index with accounting profit ratio.

Question 48
Which one of the following refers to the need on part of customer that gets satisfied by service?
1. AService Benefits
2. BService Expectations
3. CService Offer
4. DService Level
Answer: (A) Service Benefits
Explanation
In services marketing, service benefits represent the specific value, problem resolution, or functional satisfaction that fulfills a customer underlying need.

Customers evaluate services based on the core and supplementary benefits delivered to resolve their specific requirements.

Distractor analysis:

Service Expectations (Option B) refers to prior beliefs and standards that customers hold regarding service performance.

Service Offer (Option C) represents the packaged bundle of service attributes presented by the service provider.

Service Level (Option D) designates defined operational performance benchmarks such as response time or availability.
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Question 49

Match List-I with List-II.

List-I (Classification of goods as per the Sales of Goods Act, 1932)	List-II (Their Definition)
A. Specific Goods	I. The goods which are to be manufactured or produced or acquired by the seller after making the contract of sale
B. Ascertained Goods	II. The goods, which are not identified and agreed upon at the time of formation of contract of sale
C. Unascertained Goods	III. The goods, which are identified and agreed upon subsequent to the formation of contract of sale
D. Future Goods	IV. The goods, which are identified and agreed upon at the time of making the contract of sale

AA-IV, B-III, C-II, D-I
BA-I, B-II, C-III, D-IV
CA-IV, B-II, C-III, D-I
DA-I, B-III, C-II, D-IV

Answer: (A) A-IV, B-III, C-II, D-I

Explanation

The Sale of Goods Act 1930 classifies goods according to their timing of identification and existence relative to contract formation.

Specific Goods are goods identified and agreed upon at the time of making the contract of sale under Section 2(14) (IV).
Ascertained Goods are goods identified and agreed upon subsequent to the formation of the contract of sale (III).
Unascertained Goods are goods not identified and agreed upon at the time of contract formation (II).
Future Goods are goods to be manufactured, produced, or acquired by the seller after making the contract under Section 2(6) (I).

Distractor analysis:

Option B reverses the sequence by pairing Specific Goods with future production.
Option C swaps the definitions of Ascertained and Unascertained goods.
Option D pairs Specific Goods with future goods.

Question 50
Which of the following are true about Digital Signature under Information Technology (IT) Act, 2000?

A. Digital Signature is an Electronic Signature
B. Digital Signatures are accepted Globally
C. Each vendor has to make his own standard to regulate Digital Signatures
D. The term Electronic Signature is broader than Digital Signature
E. Digital Signature is less secure than Electronic Signature

Choose the correct answer from the options given below:
1. AA, D & E only
2. BA, B & D only
3. CC, B & E only
4. DB, C & D only
Answer: (B) A, B & D only
Explanation
The Information Technology Act 2000 establishes legal recognition for digital and electronic signatures in commercial transactions.

Key statutory principles:

Digital Signature is a specific cryptographic implementation of an Electronic Signature under Section 2(1)(ta) (A).

Digital Signatures utilizing public-key infrastructure are recognized and accepted globally in international trade (B).

Electronic Signature is the broader legal genus, encompassing digital signatures as a highly secure species (D).

Distractor analysis:

Statement C is false because digital signature standards are regulated by the Controller of Certifying Authorities, not individual vendors.

Statement E is false because asymmetric cryptographic digital signatures provide higher security and non-repudiation than generic electronic signatures.

Options A, C, and D contain either C or E.
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Question 51
Arrange the following steps for the Incorporation of a new LLP (Limited Liability Partnership) in the correct order -

A. Drafting of LLP Agreement
B. Deciding the partners and designated partners
C. Electronic filing of documents with ROC & issuing of Certificate of Incorporation by ROC (Registrar of Companies)
D. Checking the availability of Name
E. Obtaining DPIN & Digital Signature Certificate

Choose the correct answer from the options given below:
1. AB, E, D, A, C
2. BC, A, B, D, E
3. CA, B, C, D, E
4. DE, A, C, D, B
Answer: (A) B, E, D, A, C
Explanation
Incorporation of a Limited Liability Partnership under the LLP Act 2008 follows a prescribed statutory sequence administered by the Ministry of Corporate Affairs.

Sequential incorporation procedure:

Step 1 (B): Determine the constituent partners and designate at least two individual designated partners.

Step 2 (E): Obtain Designated Partner Identification Numbers (DPIN/DIN) and Digital Signature Certificates (DSC).

Step 3 (D): Check name availability and reserve the proposed firm name through RUN-LLP.

Step 4 (A): Draft the preliminary LLP Agreement establishing mutual rights and obligations.

Step 5 (C): Electronically file incorporation documents (FiLLiP) with the Registrar of Companies to obtain the Certificate of Incorporation.

Distractor analysis:

Option B places ROC filing and Certificate issuance before deciding partners or obtaining credentials.

Option C attempts drafting agreements before identifying partners.

Option D obtains DPIN before identifying partners.
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Question 52
Which of the following are social factors influencing consumer buying behavior?

A. Culture
B. Reference groups
C. Social Class
D. Roles assumed
E. Sub-culture

Choose the correct answer from the options given below:
1. AA, B & C Only
2. BB & D Only
3. CA, C & D Only
4. DB, D & E Only
Answer: (B) B & D Only
Explanation
In consumer behavior models, factors influencing buyer decisions are classified into distinct cultural, social, personal, and psychological categories.

Social factors specifically comprise:

Reference groups (B): Groups that exert direct or indirect influence on consumer attitudes and brand evaluations.

Roles and status / Roles assumed (D): The activities a person is expected to perform in families, clubs, or workplaces.

Distractor analysis:

Culture (A), Social Class (C), and Sub-culture (E) constitute Cultural factors in Philip Kotler's behavioral framework, not social factors.

Options A, C, and D mistakenly group cultural determinants into social categories.
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Question 53
Which one of the following is known as backbone of auditing?
1. AVerification of assets
2. BInternal check
3. CVouching
4. DInternal audit
Answer: (C) Vouching
Explanation
Vouching is universally recognized as the backbone and essence of auditing in accounting literature.

Vouching involves examining documentary evidence (vouchers, invoices, receipts, contracts) to establish the authenticity, authorization, and accounting accuracy of recorded transactions.

Distractor analysis:

Verification of assets (Option A) verifies the existence, ownership, and valuation of assets at the balance sheet date.

Internal check (Option B) is an operational arrangement of duties to prevent fraud and error automatically.

Internal audit (Option D) is an ongoing appraisal function established within an entity.
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Question 54
Which of the following is NOT an assumption of Baumol's model of cash management?
1. AThe firm is unable to forecast cash needs with certainty
2. BOpportunity cost of holding cash is known
3. CThe firm incurs the same transaction cost whenever it converts securities to cash
4. DThe firm's cash payments occur uniformly over a period
Answer: (A) The firm is unable to forecast cash needs with certainty
Explanation
The Baumol inventory model of cash management explicitly assumes complete certainty regarding the firm's future cash requirements.

Core model assumptions:

Cash needs are known and can be predicted with complete certainty.

Cash disbursements occur uniformly and steadily over the planning horizon.

Opportunity cost of holding cash (interest forgone on marketable securities) is constant and known.

Fixed transaction cost is incurred each time marketable securities are converted into cash.

Distractor analysis:

Options B, C, and D are standard assumptions formulated by Baumol.

Option A directly contradicts the deterministic foundation of the model, which was later adapted for stochastic uncertainty by Miller and Orr.
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Question 55
Arrange the given component tasks to be handled in positioning in the logical sequence -

A. Developing the value proposition
B. Analysing competitors' positioning: Is there a gap somewhere?
C. Communicating the value proposition to target consumers
D. Deciding the locus in consumers' mind: Where to lodge the product/brand?
E. Ensuring the infrastructure/competitive advantage for delivering the premise

Choose the correct answer from the options given below:
1. AD, B, A, E, C
2. BD, B, E, A, C
3. CB, D, A, E, C
4. DB, D, C, A, E
Answer: (C) B, D, A, E, C
Explanation
Brand positioning follows a strategic sequence moving from competitive market analysis to execution and external communication.

Positioning progression:

Step 1 (B): Analyze competitor positioning to identify underserved niches and competitive gaps.

Step 2 (D): Decide the mental locus and desired conceptual space to occupy in consumers' minds.

Step 3 (A): Formulate and develop the distinct customer value proposition.

Step 4 (E): Align internal operations, supply chain, and resources to substantiate the positioning claim.

Step 5 (C): Communicate the value proposition to target audiences across integrated marketing channels.

Distractor analysis:

Option A attempts mental lodging before competitive gap analysis.

Option B places organizational delivery before value proposition development.

Option D attempts customer communication before securing operational delivery capabilities.
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Question 56
Which of the following subsidiaries are fully owned by the Reserve Bank of India ?

A. National Housing Bank
B. National Bank for Agriculture and Rural Development
C. Deposit Insurance and Credit Guarantee Corporation of India
D. Bhartiya Reserve Bank Note Mudran Private Limited
E. Securities Trading Corporation of India

Choose the correct answer from the options given below:
1. AA, C & D Only
2. BA, D & E Only
3. CB, D & E Only
4. DB, C & E Only
Answer: (A) A, C & D Only
Explanation
In banking and commercial law frameworks, the traditional wholly owned subsidiaries of the Reserve Bank of India include DICGC and BRBNMPL, alongside NHB prior to its equity transfer to the Government of India.

Institutional status:

Deposit Insurance and Credit Guarantee Corporation (DICGC) was established under the DICGC Act 1961 as a wholly owned subsidiary of RBI (C).

Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) was incorporated in 1995 as a wholly owned subsidiary of RBI (D).

National Housing Bank (NHB) was set up in 1988 with 100% shareholding held by RBI until statutory divestment to GoI (A).

Distractor analysis:

NABARD (B) was founded with joint equity and was fully transferred to the Government of India.

STCI (E) was privatised with RBI divesting its stake to commercial banks and financial institutions.

Options B, C, and D contain entities that were never exclusive wholly owned subsidiaries.
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Question 57
Which of the following item is included in the definition "Goods" as per Sales of Goods Act, 1930?
1. APurchase of lottery tickets
2. BThe decree of Court of Law
3. CActionable claims
4. DImmovable Property
Answer: (A) Purchase of lottery tickets
Explanation
Under Section 2(7) of the Sale of Goods Act 1930, goods are defined as every kind of movable property other than actionable claims and money.

In landmark mercantile jurisprudence, the Supreme Court of India held in H. Anraj v. Government of Tamil Nadu (1986) that lottery tickets constitute goods, distinguishing the entitlement to participate in the draw as movable property.

Distractor analysis:

The decree of Court of Law (Option B) represents an actionable debt or right to execute judgment rather than goods.

Actionable claims (Option C) and money are expressly excluded from the statutory definition of goods in Section 2(7).

Immovable Property (Option D) is governed by the Transfer of Property Act 1882 and excluded from the Sale of Goods Act.
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Question 58
Which of the following are cases of Funds Flow?

A. Payment to trade creditors by sale of Land
B. Cash collection from debtors
C. Purchase of Furniture by issue of bills payable
D. Payment of long term loan by cash
E. Payment of bills payable by cash

Choose the correct answer from the options given below:
1. AA, D & E only
2. BB, C & D only
3. CA, C & D only
4. DB & E only
Answer: (C) A, C & D only
Explanation
A flow of funds (working capital change) occurs if and only if a transaction crosses the boundary between a current account and a non-current account.

Evaluation of transactions:

Transaction A: Trade creditors (current liability) paid by sale of Land (non-current asset). Involves current and non-current accounts, resulting in a funds flow.

Transaction C: Purchase of Furniture (non-current asset) by issuing bills payable (current liability). Involves non-current and current accounts, resulting in a funds flow.

Transaction D: Repayment of long-term loan (non-current liability) by cash (current asset). Involves non-current and current accounts, resulting in a funds flow.

Distractor analysis:

Cash collection from debtors (B) involves only current assets, leaving net working capital unchanged.

Payment of bills payable by cash (E) involves only current liability and current asset, causing no funds flow.

Options A, B, and D include either B or E.
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Question 59
A statistical statement in International business that shows at a point the value of financial assets of residents of an economy that are claims on non-residents or are gold bullion held as reserve assets and the liabilities of residents of an economy to non-residents is known as
1. ACurrency Composition Table
2. BSpecial Purpose Entities (SPEs)
3. CCross Border Flows
4. DThe Internation Investment Position (IIP)
Answer: (D) The Internation Investment Position (IIP)
Explanation
The International Investment Position (IIP) is the standard statistical balance sheet recording a nation's external financial assets and liabilities at a specific point in time.

Per the International Monetary Fund Balance of Payments and International Investment Position Manual (BPM6), the IIP presents the stock of cross-border financial claims and liabilities of residents relative to non-residents.

Distractor analysis:

Currency Composition Table (Option A) reports the denomination currency distribution of foreign exchange reserves.

Special Purpose Entities (Option B) are legal corporate structures created for specific financial objectives.

Cross Border Flows (Option C) measures transaction flows during a period, unlike the stock measurement of the IIP.
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Question 60

Match List-I with List-II.

List-I (Negotiable Instruments)	List-II (Their Explanation)
A. Inchoate Instrument	I. When negotiable instrument is delivered conditionally or for a specific purpose as a collateral security or for safe custody only
B. Ambiguous Instrument	II. When the name of the drawer, or the payee, or both are fake in a bill
C. Escrow	III. When the instrument owing to its faulty drafting may be interpreted either as a promissory note or bill of exchange
D. Fictitious Bill	IV. An incomplete instrument in some respect, where a person signs & delivers to another a blank or incomplete paper

AA-II, B-III, C-I, D-IV
BA-III, B-II, C-IV, D-I
CA-IV, B-III, C-I, D-II
DA-I, B-II, C-III, D-IV

Answer: (C) A-IV, B-III, C-I, D-II

Explanation

The Negotiable Instruments Act 1881 defines specific categories of negotiable paper based on drafting status and delivery conditions.

Inchoate Instrument is an incomplete stamped instrument where a person signs and delivers a blank or incomplete paper under Section 20 (IV).
Ambiguous Instrument is an instrument that owing to faulty drafting may be treated as either a promissory note or bill of exchange under Section 17 (III).
Escrow is a negotiable instrument delivered conditionally or for safe custody rather than immediate negotiation (I).
Fictitious Bill is a bill where the name of the drawer, payee, or both are fictitious under Section 42 (II).

Distractor analysis:

Option A matches Inchoate to fictitious bill and Fictitious to inchoate instrument.
Option B matches Inchoate to ambiguous instrument.
Option D matches Inchoate to escrow.

Question 61
Which one of the following cost-value-price trio, a manufacturer would like to seek?
1. AValue > Price > Costs
2. BPrice > Value > Costs
3. CPrice > Costs > Value
4. DPrice = Value > Costs
Answer: (A) Value > Price > Costs
Explanation
Sustainable value creation and market exchange require positive surplus for both the purchasing customer and the manufacturing firm.

Economic structure of the trio:

Perceived Value must exceed Price (Value > Price) to generate positive Consumer Surplus and motivate purchasing.

Selling Price must exceed Unit Cost (Price > Costs) to generate positive Producer Surplus (gross profit margin).

Combined relation: Value > Price > Costs.

Distractor analysis:

Price > Value > Costs (Option B) repels customers because price exceeds perceived worth, causing zero transaction volume.

Price > Costs > Value (Option C) results in complete customer rejection.

Price = Value > Costs (Option D) leaves zero incentive or economic surplus for buyers.
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Question 62

Match List-I with List-II.

List-I (Purpose for which deduction is given under the Income-tax Act, 1961)	List-II (Relevant Section)
A. Contribution to Agnipath Scheme	I. Section 80TTB
B. Profits and gains from business collecting and processing of bio-degradable waste	II. Section 80GGB
C. Interest on deposits in case of senior citizens	III. Section 80CCH
D. Contributions given by companies to political parties	IV. Section 80JJA

AA-III, B-IV, C-I, D-II
BA-II, B-IV, C-III, D-I
CA-IV, B-III, C-I, D-II
DA-I, B-II, C-IV, D-III

Answer: (A) A-III, B-IV, C-I, D-II

Explanation

Chapter VI-A of the Income-tax Act 1961 provides targeted tax deductions across specialized socio-economic activities.

Contribution to Agnipath Scheme is deductible under Section 80CCH introduced by Finance Act 2023 (III).
Profits from collecting and processing bio-degradable waste are deductible under Section 80JJA (IV).
Interest on deposits in case of senior citizens is deductible up to ₹50,000 under Section 80TTB (I).
Contributions given by companies to political parties are deductible under Section 80GGB (II).

Distractor analysis:

Option B pairs Agnipath contributions with political parties and senior citizens with Agnipath.
Option C pairs Agnipath with bio-degradable waste.
Option D pairs Agnipath with senior citizen deposit interest.

Question 63

Match List-I with List-II.

List-I (Product)	List-II (Description)
A. Dinosaur	I. Products that are beautiful but unsaleable
B. Flamingo	II. Products that are blind to the future
C. Ostrich	III. Products that are source of a profitable future
D. Pearl	IV. Products that have missed their niche

AA-IV, B-II, C-I, D-III
BA-II, B-I, C-IV, D-III
CA-I, B-II, C-IV, D-III
DA-IV, B-I, C-II, D-III

Answer: (D) A-IV, B-I, C-II, D-III

Explanation

Product portfolio management utilizes metaphorical classifications to characterize strategic lifecycle and commercial viability positions.

Dinosaur represents legacy offerings that have missed their niche and face impending market obsolescence (IV).
Flamingo characterizes products that are aesthetically beautiful but unsaleable and commercially non-viable (I).
Ostrich designates offerings whose management remains blind to the future and ignores technological shifts (II).
Pearl identifies high-potential offerings that represent a source of a profitable future (III).

Distractor analysis:

Option A matches Flamingo to blind to the future and Ostrich to beautiful but unsaleable.
Option B matches Dinosaur to blind to the future and Ostrich to missed their niche.
Option C matches Dinosaur to beautiful but unsaleable.

Question 64
Data preparation needs to ensure the accuracy of the data and their conversion from raw form to reduced and classified forms for analysis. It includes which of the following:

A. Coding
B. Data Entry
C. Editing
D. Steming
E. Aliasing

Choose the correct answer from the options given below:
1. AA & C only
2. BB & D only
3. CA, B & C only
4. DC, D & E only
Answer: (C) A, B & C only
Explanation
In business research methodology, data preparation processes raw empirical responses into verified, classified datasets for statistical analysis.

Core data preparation steps:

Editing (C): Inspecting completed questionnaires to correct errors, omissions, and legibility problems.

Coding (A): Assigning numerical rules or category symbols to raw survey responses.

Data Entry (B): Transcribing coded data into digital spreadsheets and analytical software packages.

Distractor analysis:

Stemming (D) is a specific linguistic text-mining algorithm for reducing words to root stems, not a general survey preparation phase.

Aliasing (E) is a signal processing and experimental design confounding concept.

Options A, B, and D omit essential stages or introduce non-survey technical concepts.
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Question 65

Match List-I with List-II.

List-I (Concept)	List-II (Meaning)
A. Systematic risk	I. Compensation for time
B. Beta	II. Increase in corporate tax rate
C. Risk-free rate	III. Sensitivity coefficient
D. Unsystematic risk	IV. Competitor enters market

AA-I, B-IV, C-III, D-II
BA-IV, B-I, C-II, D-III
CA-III, B-II, C-IV, D-I
DA-II, B-III, C-I, D-IV

Answer: (D) A-II, B-III, C-I, D-IV

Explanation

Modern portfolio theory distinguishes between undiversifiable market-wide risks and asset-specific microeconomic risks.

Systematic risk arises from economy-wide macroeconomic shocks such as an Increase in corporate tax rate (II).
Beta operates as the systematic Sensitivity coefficient measuring stock responsiveness to broad market movements (III).
Risk-free rate represents pure Compensation for time on default-free government instruments (I).
Unsystematic risk represents diversifiable firm-specific events such as a Competitor enters market (IV).

Distractor analysis:

Option A links Systematic risk to time compensation and Beta to competitor entry.
Option B links Systematic risk to competitor entry.
Option C pairs Systematic risk with sensitivity coefficient and Beta with tax rate.

Question 66
The current ratio of a company is 2:1. Which one the following suggestions would improve the current ratio?
1. APurchase stock for cash
2. BCash collection from debtors
3. CPay a current liability
4. DPurchase fixed assets
Answer: (C) Pay a current liability
Explanation
When the current ratio exceeds 1:1, an equal numerical reduction in both current assets and current liabilities mathematically increases the ratio.

Mathematical demonstration:
Initial Current Assets = 200
Initial Current Liabilities = 100
Current Ratio = 200 / 100 = 2.0

Paying a current liability of 50 in cash:
New Current Assets = 200 - 50 = 150
New Current Liabilities = 100 - 50 = 50
New Current Ratio = 150 / 50 = 3.0 (Improved)

Distractor analysis:

Option A exchanges one current asset (cash) for another (stock), leaving total current assets and the ratio unchanged.

Option B exchanges debtors for cash, leaving total current assets and the ratio unchanged.

Option D reduces cash to acquire fixed assets, reducing current assets while current liabilities remain constant, which lowers the ratio.
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Question 67
Arrange the following banks in an increasing order of their year of formation-

A. State Bank of India
B. Imperial Bank of India
C. RBI
D. Regional Rural Banks
E. Small Finance Bank

Choose the correct answer from the options given below:
1. AE, D, C, B, A
2. BE, D, A, B, C
3. CB, C, A, D, E
4. DC, B, A, D, E
Answer: (C) B, C, A, D, E
Explanation
Indian banking institutions were established across consecutive regulatory eras from the colonial period to modern differentiated licensing.

Chronological timeline of bank formation:

Imperial Bank of India was formed on 27 January 1921 through the amalgamation of the three Presidency Banks (B).

Reserve Bank of India commenced operations on 1 April 1935 under the RBI Act 1934 (C).

State Bank of India was created on 1 July 1955 by nationalizing the Imperial Bank of India (A).

Regional Rural Banks were established on 2 October 1975 under the RRB ordinance and 1976 Act (D).

Small Finance Banks were licensed and operationalized under RBI differentiated banking guidelines from 2015 to 2016 (E).

Distractor analysis:

Option A completely inverts the chronological order from newest to oldest.

Option B places SBI before Imperial Bank and RBI.

Option D places RBI in 1935 before Imperial Bank in 1921.
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Question 68
Arrange the following steps of decision making process in application of Economics in Business decision making from starting to end -

A. Selection and Implementation of Decision
B. Inventing, developing possible Course of Action
C. Collection and Analysis of Relevant Data
D. Identifying Business Related Issues
E. Determining and defining objective

Choose the correct answer from the options given below:
1. AD, C, E, B, A
2. BC, D, B, E, A
3. CB, C, D, E, A
4. DE, D, C, B, A
Answer: (D) E, D, C, B, A
Explanation
Managerial economics decision-making begins with defining organizational objectives and culminates in economic selection and operational execution.

Sequential decision steps:

Step 1 (E): Determine and define the firm's strategic and operational objectives.

Step 2 (D): Identify specific business-related issues and managerial problem bottlenecks.

Step 3 (C): Collect and analyze relevant market, cost, and revenue data.

Step 4 (B): Formulate, invent, and develop alternative feasible courses of action.

Step 5 (A): Select the optimal course using economic decision criteria and implement the decision.

Distractor analysis:

Option A starts with issue identification before organizational objectives are defined.

Option B places data collection first before knowing problems or objectives.

Option C invents courses of action prior to establishing objectives or collecting evidence.
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Question 69
The tool that International Development Association (IDA) uses to address the impact of severe natural disasters, public health emergencies by providing extra finances is known as
1. AEmergency Response Fund (ERF)
2. BLong term Lending system
3. CCrisis Response Window (CRW)
4. DMonetary Fund
Answer: (C) Crisis Response Window (CRW)
Explanation
The Crisis Response Window (CRW) is a specialized financing mechanism of the World Bank's International Development Association (IDA).

Introduced during IDA16, the CRW provides rapid surge financing to low-income countries suffering from severe natural catastrophes, public health emergencies, and severe economic crises.

Distractor analysis:

Emergency Response Fund (Option A) is a generic UN humanitarian term.

Long term Lending system (Option B) is a general financing description rather than IDA's emergency crisis window.

Monetary Fund (Option D) refers to the IMF, a distinct multilateral institution.
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Question 70
Arrange the given steps involved in designing a channel system in the logical order -

A. Evaluating the distribution environment
B. Evaluating the short-listed alternative designs and selecting the one that suits the firm best
C. Matching the channel design to customer needs/characteristics
D. Choosing the channel intensity and number of tiers
E. Evaluating competitors channel design

Choose the correct answer from the options given below:
1. AA, C, E, B, D
2. BC, A, E, D, B
3. CC, E, D, A, B
4. DC, A, E, B, D
Answer: (B) C, A, E, D, B
Explanation
Designing marketing channel systems follows an established logical progression from customer requirements to channel configuration and selection.

Channel design sequence:

Step 1 (C): Match channel design to target customer needs, purchasing habits, and service requirements.

Step 2 (A): Evaluate macro environmental, regulatory, and legal distribution factors.

Step 3 (E): Analyze competitors' distribution channels to identify benchmarks and competitive advantages.

Step 4 (D): Determine channel intensity (intensive, selective, exclusive) and number of intermediary tiers.

Step 5 (B): Evaluate shortlisted channel alternatives against economic, control, and adaptive criteria to select the final design.

Distractor analysis:

Option A places environment ahead of customer needs and selects the channel before choosing intensity.

Option C analyzes competitors before evaluating the broader distribution environment.

Option D prematurely selects the final design before specifying intensity and tiers.
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Question 71
Which of the following are primary functions of Commercial Banks?

A. Accepting Deposits
B. Agency Service
C. Discounting Trade Bills
D. Financing Foreign Trade
E. General Utility Service

Choose the correct answer from the options given below:
1. AA, C & E Only
2. BA, B & D only
3. CB, C & E only
4. DA, C & D only
Answer: (D) A, C & D only
Explanation
Commercial banking functions are divided into primary core banking operations and secondary agency/utility services.

Primary core operations encompass:

Accepting deposits across demand, savings, and term accounts (A).

Discounting commercial and trade bills of exchange (C).

Financing trade and extending commercial credit facilities including foreign trade advances (D).

Distractor analysis:

Agency Services (B) and General Utility Services (E) represent secondary banking functions rather than primary credit creation functions.

Options A, B, and C include either B or E.
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Question 72
An exploratory study is finished when the researcher has achieved the following:

A. Established the major dimensions of the research task
B. Defined a set of subsidiary investigative questions that can be used as guides to a detailed research design
C. Developed several hypotheses about possible causes of a management dilemma
D. Learned that certain other hypothesis are such remote possibilities that they can be safely ignored in any subsequent study
E. Concluded additional research is needed and it is feasible

Choose the correct answer from the options given below:
1. AA & B Only
2. BA, B & C Only
3. CA, B, C & D only
4. DB, C, D & E only
Answer: (C) A, B, C & D only
Explanation
In business research methodology per Cooper and Schindler, an exploratory study concludes when four specific cognitive outcomes are reached.

Exploratory study endpoints:

Major dimensions of the research task have been firmly established (A).

A clear set of subsidiary investigative questions has been formulated to guide subsequent formal research (B).

Several plausible hypotheses explaining the management dilemma have been developed (C).

Remote or unviable hypotheses have been eliminated from future investigation (D).

Distractor analysis:

Merely concluding that research is feasible (E) is a general administrative outcome rather than an epistemic completion criterion.

Options A and B understate the necessary outcomes by omitting hypothesis generation and elimination.
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Question 73
Which one of the following sources of power of the supervisor is NOT true for the subordinates to comply?
1. AReward
2. BCoercive
3. CExpert
4. DMeans-ends-control
Answer: (D) Means-ends-control
Explanation
French and Raven's foundational five bases of interpersonal power identify reward, coercive, legitimate, referent, and expert power as sources of subordinate compliance.

Means-ends-control is an instrumental cognitive construct from decision theory rather than an established interpersonal social power base for supervisor compliance.

Distractor analysis:

Reward power (Option A) operates through the supervisor's ability to provide positive tangible or intangible outcomes.

Coercive power (Option B) secures compliance through the threat or application of punitive sanctions.

Expert power (Option C) drives compliance through recognized specialized knowledge and technical competence.
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Question 74
A person applies for a loan of ₹1,00,000. The bank informed him that over the years, it had received 2920 loan applications per year and the probability of approval was, on an average 0.85. The applicant wants to know the average number of loans approved per year by the bank. What can be that number?
1. A1920
2. B3250
3. C1000
4. D2482
Answer: (D) 2482
Explanation
The expected number of approved loans is calculated as the product of total annual applications and the average probability of approval.

Formula:
Expected Approvals = Total Applications * Probability of Approval

Given values:
Total Applications (n) = 2920
Approval Probability (p) = 0.85

Calculation:
Expected Approvals = 2920 * 0.85
Expected Approvals = 2482

Distractor analysis:

Option A (1920) understates approvals by approximately 22%.

Option B (3250) exceeds total applications received, which is mathematically impossible.

Option C (1000) corresponds to an approval probability of approximately 0.34.
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Question 75
Which of the following are true about the equilibrium of the Industry in long run under perfect competition?

A. The long-run supply and demand for the product of the industry should be in equilibrium
B. All firms in the industry should be in long run equilibrium by equating price with long-run marginal cost (P=LMC)
C. There should be tendency for the new firms to enter the industry, or for the existing firms to leave it
D. The firms are earning zero economic profits with price being equal to long-run minimum average cost (P=min. LAC)
E. The firms would not have adjusted their size of plants when there is long-run equilibrium (P=LMC)

Choose the correct answer from the options given below:
1. AA, B & C only
2. BC, D & E only
3. CA, B & D only
4. DB, C & D only
Answer: (C) A, B & D only
Explanation
Under long-run perfect competition, industry equilibrium requires simultaneous market clearance and individual firm profit maximization at zero economic profit.

Equilibrium conditions:

Industry aggregate supply equals market demand at the equilibrium market price (A).

Each firm maximizes profit where Price equals Long-Run Marginal Cost: P = LMC (B).

Price equals the minimum point of the Long-Run Average Cost curve (P = min LAC), yielding zero economic profit and leaving no incentive for entry or exit (D).

Distractor analysis:

Statement C is false because industry equilibrium requires zero entry and exit tendencies.

Statement E is false because firms fully adjust plant size to achieve optimal scale in the long run.

Options A, B, and D include either distractor C or distractor E.
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Question 76
Under section 206C of the Income-tax Act, 1961, a seller is supposed to collect income tax from the buyer in respect of sale of the following goods:

A. Motor Vehicle of the value between ₹7,00,000 - ₹9,00,000
B. Alcoholic liquor for human consumption
C. Electronic items of the value between ₹10,00,000 - ₹15,00,000
D. Timber obtained under a forest lease
E. Minerals, being coal or lignite or iron ore

Choose the correct answer from the options given below:
1. AA, C & E only
2. BB, D & E only
3. CA & C only
4. DB & E only
Answer: (B) B, D & E only
Explanation
Section 206C(1) of the Income-tax Act 1961 mandates Tax Collection at Source (TCS) by sellers on specified categories of trading goods.

Specified statutory goods under Section 206C(1):

Alcoholic liquor for human consumption (B)

Timber obtained under a forest lease (D)

Minerals being coal, lignite, or iron ore (E)

Distractor analysis:

Motor Vehicle (A) triggers TCS under Section 206C(1F) only when the consideration exceeds ₹10,00,000, excluding vehicles valued between ₹7,00,000 and ₹9,00,000.

Electronic items (C) have no statutory TCS provision under Section 206C.

Options A, C, and D contain either non-taxable A or C.
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Question 77
Which one of the following is NOT true about the relationship between Average Cost (AC) and Marginal Cost (MC)?
1. AWhen MC is falling, the rate of fall in MC is greater than that of AC
2. BWhen MC increases, AC also increase but at a lower rate. However, there is a range of output where MC begins to increase while AC continue to decrease
3. CWhen AC is constant, AC<MC
4. DMC curve intersects AC curve at its minimum
Answer: (C) When AC is constant, AC<MC
Explanation
The mathematical relationship between average cost and marginal cost dictates that marginal cost must exactly equal average cost when average cost is constant at its minimum.

When AC is constant and reaches its stationary minimum point, AC equals MC (AC = MC), so asserting that AC < MC is mathematically false.

Distractor analysis:

Option A is true because the marginal cost curve pulls down the average cost curve and falls more steeply.

Option B is true because marginal cost begins rising earlier while average cost continues downward until the two curves intersect.

Option D is true because marginal cost passes through the lowest point of the average cost curve from below.
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Question 78

Match List-I with List-II.

List-I (Trade Agreement Types)	List-II (Description)
A. Early Harvest Scheme (EHS)	I. Two or more parties give right of entry to certain products by reducing duties on an agreed number in tariff lines
B. Comprehensive Economic Partnership Agreement (CEPA)	II. In which two or more countries agree to provide trade terms, tariff concession to partner country/ies
C. Preferential Trade Agreement	III. A Precursor of CECA, thus a step towards enhanced engagement and confidence building
D. Free Trade Agreement	IV. Looks into the regulatory aspect of trade and encompasses an agreement on customs, competition & IPR

AA-III, B-IV, C-I, D-II
BA-IV, B-III, C-II, D-I
CA-I, B-III, C-II, D-IV
DA-II, B-I, C-IV, D-III

Answer: (A) A-III, B-IV, C-I, D-II

Explanation

Trade integration agreements vary progressively in scope, regulatory depth, and tariff coverage across bilateral and regional partners.

Early Harvest Scheme (EHS) acts as an interim confidence-building measure preceding a comprehensive economic partnership agreement (III).
Comprehensive Economic Partnership Agreement (CEPA) covers broad regulatory disciplines including customs, competition, services, investment, and IPR (IV).
Preferential Trade Agreement offers preferential entry on an agreed positive list of specified tariff lines (I).
Free Trade Agreement commits signatory countries to eliminate or reduce tariff concessions across substantially all bilateral trade (II).

Distractor analysis:

Option B pairs EHS with comprehensive regulatory aspects.
Option C matches EHS with tariff line duty cuts and CEPA with CECA precursor.
Option D links EHS with tariff concession agreements.

Question 79
Which among the following are the key aspects/ determinants for an equilibrium under monopolistic competition?

A. The mobility of factors of production
B. The Price
C. Imperfect knowledge about the market
D. The Nature of the Product
E. The amount of advertising outlay

Choose the correct answer from the options given below:
1. AB, D & E only
2. BA, B & C only
3. CB, C & D only
4. DC, D & E only
Answer: (A) B, D & E only
Explanation
Edward Chamberlin's theory of monopolistic competition establishes three central firm decision variables that determine competitive equilibrium.

Determinants of monopolistic competition equilibrium:

The Price (B): Individual price-setting power derived from downward-sloping demand curves.

The Nature of the Product (D): Product differentiation through design, packaging, and branding.

The amount of advertising outlay (E): Selling costs and promotional expenditure shifting brand demand curves outward.

Distractor analysis:

Factor mobility (A) is an assumption of long-run resource allocation rather than an active decision determinant.

Imperfect knowledge (C) is a broad market friction rather than a strategic firm decision variable.

Options B, C, and D omit selling cost outlay or product variation.
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Question 80
Which of the following are the instruments of qualitative Credit Control Methods in India's Monetary Policy?

A. Cash Reserve Ratio
B. Consumer Credit Regulation
C. Altering Margin Requirements
D. Statutory Liquidity Ratio
E. Differential Rate of Interest

Choose the correct answer from the options given below:
1. AA, B & D only
2. BB, C & E only
3. CC, D & E only
4. DD, E & A only
Answer: (B) B, C & E only
Explanation
Qualitative or selective credit control instruments govern the directional allocation and purpose of credit without altering total macroeconomic credit volume.

Qualitative monetary instruments:

Consumer Credit Regulation (B): Directs down-payment rules and installment repayment durations for consumer durables.

Altering Margin Requirements (C): Varies the minimum borrower equity margin required against pledged security collaterals.

Differential Rate of Interest (E): Enforces concessional interest lending to priority and vulnerable socio-economic segments.

Distractor analysis:

Cash Reserve Ratio (A) and Statutory Liquidity Ratio (D) are quantitative credit control instruments that regulate total credit volume in the banking system.

Options A, C, and D mistakenly include quantitative reserve ratios.
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Question 81

Match List-I with List-II.

List-I (Theories of International Investment)	List-II (Outline of Theory)
A. Eclectic Theory	I. FDI occurs largely in oligopolistic industries rather than in industries operating under near perfect competition
B. Appropriability Theory	II. Capital as an investment will move from countries where it is abundant to countries where it is scarce because the returns on investment opportunities are higher where capital is limited
C. Market Imperfection Theory	III. The firm should be able to keep the benefits resulting from its innovation & Research for its exclusive use
D. Theory of Capital Movements	IV. The framework follows three tiers-ownership, location and internalization, assuming that companies are not likely to follow through the FDI, if they can get the service or product internally and at lower costs

AA-IV, B-I, C-III, D-II
BA-I, B-III, C-II, D-IV
CA-III, B-IV, C-II, D-I
DA-IV, B-III, C-I, D-II

Answer: (D) A-IV, B-III, C-I, D-II

Explanation

Theories of international investment explain foreign direct investment through transaction costs, firm-specific advantages, and market structure.

Eclectic Theory (Dunning) establishes the three-tiered Ownership, Location, and Internalization (OLI) paradigm (IV).
Appropriability Theory (Magee) posits that multinational enterprises retain control over technology to capture returns from research and development (III).
Market Imperfection Theory (Hymer) demonstrates that FDI flourishes in oligopolistic market structures overcoming barriers to entry (I).
Theory of Capital Movements explains foreign capital transfers between nations driven by differential return and interest yield differentials (II).

Distractor analysis:

Option A links Market Imperfection to technology appropriability.
Option B links Eclectic Theory to oligopoly structure.
Option C swaps Eclectic and Appropriability outlines.

Question 82
Under the Income-Tax-Act, 1961, the value of perquisite in respect of movable assets (other than the assets already specified in Rule 3 of the Income tax Rules, 1962) owned by the employer is calculated at the rate of :
1. A10% per annum of the actual cost
2. B20% per annum of the actual cost
3. C10% per month of the actual cost
4. D20% per month of the actual cost
Answer: (A) 10% per annum of the actual cost
Explanation
Under Rule 3(7)(vii) of the Income-tax Rules 1962, the taxable value of perquisite for using employer-owned movable assets is determined at a standard annual percentage.

Statutory valuation rule:
Where movable assets (other than computers, laptops, and motor cars) owned by the employer are provided to the employee or household, the perquisite value is calculated at 10% per annum of the actual cost of the asset.

Distractor analysis:

Option B (20% per annum) represents higher depreciation rates applicable under other heads but not perquisite valuation.

Options C and D prescribe monthly percentage rates that would severely overstate statutory annual valuation.
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Question 83
A company forfeits 100 shares of ₹10 each on which ₹ 300 has been received. 60 shares are reissued at ₹9 per share. Which one of the following amount is to be transferred to Capital Reserve Account?
1. A₹200
2. B₹180
3. C₹120
4. D₹60
Answer: (C) ₹120
Explanation
When forfeited shares are reissued, the proportionate balance in the Shares Forfeited Account less the discount allowed on reissue is transferred to Capital Reserve.

Computation:
Forfeited amount received on 100 shares = ₹300
Amount received per share = 300 / 100 = ₹3

For 60 reissued shares:
Forfeited amount on 60 shares = 60 * 3 = ₹180
Reissue discount per share = Nominal value ₹10 - Reissue price ₹9 = ₹1
Total discount allowed on reissue = 60 * 1 = ₹60

Transfer to Capital Reserve:
Forfeited amount on reissued shares - Discount allowed on reissue = 180 - 60 = ₹120

Distractor analysis:

Option A (₹200) represents an incorrect ratio of the remaining forfeited shares.

Option B (₹180) reflects total forfeited funds on the 60 shares before deducting reissue discount.

Option D (₹60) represents the discount allowed on reissue.
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Question 84

Match List-I with List-II.

List-I (Valuation of Human Resources approach)	List-II (Developed by)
A. Historical Cost approach	I. Rensis Likert and Eric G Flamholtz
B. Replacement Cost approach	II. Hekimian and Jones
C. Opportunity Cost approach	III. David Watson
D. Standard Cost approach	IV. Brummet Flamholtz and Pyle

AA-I, B-II, C-III, D-IV
BA-III, B-IV, C-I, D-II
CA-I, B-IV, C-II, D-III
DA-IV, B-I, C-II, D-III

Answer: (D) A-IV, B-I, C-II, D-III

Explanation

Human resource valuation models in accounting incorporate historical investments, replacement estimates, and economic opportunity valuations.

Historical Cost approach was developed by Brummet, Flamholtz, and Pyle in 1968 (IV).
Replacement Cost approach was pioneered by Rensis Likert and Eric G. Flamholtz (I).
Opportunity Cost approach (Competitive Bidding Model) was developed by Hekimian and Jones in 1967 (II).
Standard Cost approach was formulated by David Watson (III).

Distractor analysis:

Option A pairs Historical Cost with Likert and Replacement Cost with Hekimian.
Option B links Historical Cost with Watson.
Option C swaps Brummet with Likert.

Question 85
Which one of the following is not a basic property of Indifference curve?
1. AIndifference curve slope downwards to right
2. BIndifference curve of imperfect substitutes are convex to the origin
3. CIndifference curve either intersect or are tangent to one another
4. DUpper indifference curves indicate a higher level of satisfaction
Answer: (C) Indifference curve either intersect or are tangent to one another
Explanation
Indifference curves can never intersect or become tangent to each other because consumer preferences are assumed to be consistent and transitive.

If two indifference curves intersected, a single commodity bundle would yield two different levels of utility, violating the foundational axiom of transitivity.

Distractor analysis:

Option A is an established property reflecting the negative marginal rate of substitution.

Option B is an established property arising from the diminishing marginal rate of substitution between imperfect substitutes.

Option D is an established property derived from the monotonicity of consumer preferences.
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Question 86
Arrange the following Financial Institution in the increasing order of their date of establishment-

A. NABARD
B. EXIM Bank
C. UTI
D. SIDBI
E. ECGC

Choose the correct answer from the options given below:
1. AA, B, C, D, E
2. BC, B, A, D, E
3. CC, A, B, E, D
4. DE, C, B, A, D
Answer: (D) E, C, B, A, D
Explanation
Specialized Indian financial institutions were incorporated sequentially to support trade, agricultural credit, and enterprise development.

Chronological timeline:

Export Credit Guarantee Corporation of India (ECGC) was established on 30 July 1957 (E).

Unit Trust of India (UTI) commenced operations on 1 February 1964 under the UTI Act 1963 (C).

Export-Import Bank of India (EXIM Bank) was established on 1 January 1982 (B).

National Bank for Agriculture and Rural Development (NABARD) was established on 12 July 1982 (A).

Small Industries Development Bank of India (SIDBI) commenced operations on 2 April 1990 (D).

Distractor analysis:

Option A places NABARD first ahead of earlier institutions.

Option B places UTI ahead of ECGC.

Option C swaps the establishment dates of EXIM Bank and NABARD.
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Question 87
Arrange the given Prefatory Information sub - modules into a sequence to form a Long Management Report -

A. Title Page
B. Executive Summary
C. Table of contents
D. Letter of transmittal
E. Authorization statement

Choose the correct answer from the options given below:
1. AB, C, D, A, E
2. BE, D, B, C, A
3. CD, A, E, B, C
4. DC, A, D, E, B
Answer: (C) D, A, E, B, C
Explanation
Formal long management reports follow standardized business communication protocols for prefatory document parts.

Sequential prefatory structure:

Part 1 (D): Letter of transmittal, conveying the formal delivery of the report.

Part 2 (A): Title Page, detailing the report subject, author, and submission metadata.

Part 3 (E): Authorization statement, detailing commissioning authority and scope of mandate.

Part 4 (B): Executive Summary, providing a high-level briefing of findings and strategic recommendations.

Part 5 (C): Table of contents, listing sections, exhibits, and page references.

Distractor analysis:

Option A starts with the executive summary prior to formal transmittal and title identification.

Option B places authorization ahead of transmittal.

Option D places table of contents ahead of title page and transmittal letter.
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Question 88
The maximum number of Partners in a Limited Liability Partnership can be :
1. ASeven
2. BFifty
3. CHundred
4. DNo Limit
Answer: (D) No Limit
Explanation
Under Section 6(1) of the Limited Liability Partnership Act 2008, an LLP must have at least two partners, with no statutory ceiling on the maximum number of partners.

The absence of a maximum partner cap allows LLPs to accommodate large professional partnerships, unlike traditional partnership firms governed by the Companies Act ceilings.

Distractor analysis:

Seven (Option A) corresponds to the minimum membership for public limited companies.

Fifty (Option B) is the maximum membership ceiling for general partnership firms under Rule 10 of the Companies (Miscellaneous) Rules 2014.

Hundred (Option C) represents the statutory cap under Section 464 of the Companies Act 2013 for unregistered partnerships.
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Question 89
Which of the following antecedent conditions explain intergroup conflict?

A. Personal differences
B. Competition for resources
C. Role incompatibility
D. Task independence
E. Jurisdictional ambiguity

Choose the correct answer from the options given below:
1. AA, B & C Only
2. BA, B, D & E only
3. CA, C & D Only
4. DB, D & E Only
Answer: (A) A, B & C Only
Explanation
In organizational behavior, intergroup conflict arises from structural, interpersonal, and resource allocation frictions between organizational units.

Core antecedent drivers:

Personal differences (A): Divergent individual values, personalities, and perceptions creating interpersonal friction.

Competition for resources (B): Multiple departments competing over scarce budgetary, equipment, or personnel allocations.

Role incompatibility (C): Conflicting goals, expectations, and operational priorities between interdependent groups.

Distractor analysis:

Task independence (D) reduces friction because separate groups operate without mutual reliance, whereas task interdependence generates conflict.

Jurisdictional ambiguity (E) is bundled with task independence in options B, C, and D, making option A the only valid grouping.
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Question 90
In which of the following cases, undue influence is presumed :
1. ACreditor and debtor
2. BLandlord and tenant
3. CHusband and Wife
4. DParent and Child
Answer: (D) Parent and Child
Explanation
Under Section 16(2) of the Indian Contract Act 1872, undue influence is presumed in relationships where one party stands in a fiduciary relation or position of natural dominance over the other.

The relationship between Parent and Child carries a legal presumption of undue influence due to parental dominance and natural dependence of the offspring.

Distractor analysis:

Creditor and debtor (Option A) is an arm's length commercial relationship with no legal presumption of undue influence.

Landlord and tenant (Option B) involves mutual contractual leases where undue influence must be affirmatively proved.

Husband and Wife (Option C) does not carry a legal presumption of undue influence under Indian contract law.
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Question 91
Why there is an urgent need for a separate e-commerce export policy?

A. Reimport issues are being addressed by existing export policies
B. Cross-border e-commerce has gained significantly in last few years
C. Existing export centers have favorable business infrastructure
D. E-commerce export can be managed with existing logistic hubs
E. E-commerce exports need a combination of facilities including warehousing, processing returns, repacking

Choose the correct answer from the options:
The export hubs are expected to act as a center for favourable business infrastructure and facilities for cross-border e-commerce, including facilitating faster customs clearance of cargo and also addressing the problem of reimportation because about 25 per cent of goods in e-commerce are reimported. Additionally, the hubs will offer warehousing facilities, processing returns, labelling, product, testing, repackaging items and dedicated logistics infrastructure for connecting to and leveraging the services of nearby logistics hubs, thereby achieving agglomeration benefits for exporters.

In an attempt to leverage e-commerce platforms to support local exporters, manufacturers and MSMEs in reaching potential international buyers, the DGFT signed a memorandum of understanding with global e-commerce firm Amazon last year to offer capacity-building sessions, training and workshops for MSMEs across districts identified by the DGFT as part of the “District as Exports Hub” initiative. Amazon surpassed $8 billion in cumulative exports from India in 2023 and aims to achieve its ambitious target of $20 billion by next year.

India’s exports through online platforms stood at $8-10 billion in 2022-23 compared to China’s staggering figure of more than $300 billion. A key reason for this gap is the cumbersome compliance process associated with exports, especially when it comes to payment reconciliation, which is particularly challenging for new or small exporters. At the same time, global cross-border e-commerce trade was $800 billion. With India’s cross-border e-commerce exports likely to increase to $200 billion over the next six to seven years, it can become a key strategy in achieving the $2 trillion overall exports target by 2030.

India’s services export increased by only $15.8 billion in 2023-24 over 2022-23, while merchandise export declined $14 billion in the same period. Overall, India’s combined value of exported goods and services registered a marginal increase of around $2 billion in 2023-24. At a time when export growth remains tepid and the overall trade deficit is around $78 billion, establishing a supportive e-commerce ecosystem can truly give a fillip to India’s export performance. Given the patchwork of rules and export provisions framed for exporters, there is an urgent need for a separate e-commerce export policy, which can ease the compliance burden on exporters.
1. AA & C Only
2. BB, C & D Only
3. CB & E Only
4. DC, D & E Only
Answer: (C) B & E Only
Explanation
The passage establishes that explosive cross-border e-commerce growth and specialized fulfillment requirements demand a dedicated national e-commerce export policy.

Evidence from the text:

Cross-border e-commerce trade reached $800 billion globally, with Indian online exports poised to expand to $200 billion (B).

E-commerce exports require specialized combined infrastructure, including warehousing, return processing, testing, and repackaging that current rules do not address (E).

Distractor analysis:

Statement A contradicts the text, which highlights that 25% reimportation remains an unresolved problem under existing rules.

Statement C contradicts the passage's call for new dedicated export hubs.

Statement D contradicts the requirement for specialized new logistic connectivity.
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Question 92
E-commerce export hub can offer which of the following agglomeration benefits for exporters?

A. Repacking and labelling of products
B. Substantial decrease in upfront cost incurred in export
C. Interconnection of Logistics Custom clearance exemption
D. Custom clearance exemption
E. Assured export orders

Choose the correct answer from the options:
The export hubs are expected to act as a center for favourable business infrastructure and facilities for cross-border e-commerce, including facilitating faster customs clearance of cargo and also addressing the problem of reimportation because about 25 per cent of goods in e-commerce are reimported. Additionally, the hubs will offer warehousing facilities, processing returns, labelling, product, testing, repackaging items and dedicated logistics infrastructure for connecting to and leveraging the services of nearby logistics hubs, thereby achieving agglomeration benefits for exporters.

In an attempt to leverage e-commerce platforms to support local exporters, manufacturers and MSMEs in reaching potential international buyers, the DGFT signed a memorandum of understanding with global e-commerce firm Amazon last year to offer capacity-building sessions, training and workshops for MSMEs across districts identified by the DGFT as part of the “District as Exports Hub” initiative. Amazon surpassed $8 billion in cumulative exports from India in 2023 and aims to achieve its ambitious target of $20 billion by next year.

India’s exports through online platforms stood at $8-10 billion in 2022-23 compared to China’s staggering figure of more than $300 billion. A key reason for this gap is the cumbersome compliance process associated with exports, especially when it comes to payment reconciliation, which is particularly challenging for new or small exporters. At the same time, global cross-border e-commerce trade was $800 billion. With India’s cross-border e-commerce exports likely to increase to $200 billion over the next six to seven years, it can become a key strategy in achieving the $2 trillion overall exports target by 2030.

India’s services export increased by only $15.8 billion in 2023-24 over 2022-23, while merchandise export declined $14 billion in the same period. Overall, India’s combined value of exported goods and services registered a marginal increase of around $2 billion in 2023-24. At a time when export growth remains tepid and the overall trade deficit is around $78 billion, establishing a supportive e-commerce ecosystem can truly give a fillip to India’s export performance. Given the patchwork of rules and export provisions framed for exporters, there is an urgent need for a separate e-commerce export policy, which can ease the compliance burden on exporters.
1. AA, B & C Only
2. BB, C & D Only
3. CA, B & E Only
4. DC, D & E Only
Answer: (A) A, B & C Only
Explanation
The passage specifies that e-commerce export hubs provide agglomeration benefits through integrated processing, shared infrastructure, and streamlined logistics.

Agglomeration advantages cited in the passage:

Onsite processing services including repacking, labelling, testing, and handling returns (A).

Shared facilities that yield substantial economies of scale and decrease upfront export setup costs (B).

Dedicated logistics infrastructure connecting to nearby logistics hubs for accelerated customs processing (C).

Distractor analysis:

Complete exemption from customs clearance (D) is not granted, as hubs facilitate faster clearance rather than total regulatory exemption.

Assured export orders (E) are not guaranteed by infrastructure hubs.

Options B, C, and D contain either D or E.
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Question 93
India's export through online platforms in comparison to China in 2022-23 was-
The export hubs are expected to act as a center for favourable business infrastructure and facilities for cross-border e-commerce, including facilitating faster customs clearance of cargo and also addressing the problem of reimportation because about 25 per cent of goods in e-commerce are reimported. Additionally, the hubs will offer warehousing facilities, processing returns, labelling, product, testing, repackaging items and dedicated logistics infrastructure for connecting to and leveraging the services of nearby logistics hubs, thereby achieving agglomeration benefits for exporters.

In an attempt to leverage e-commerce platforms to support local exporters, manufacturers and MSMEs in reaching potential international buyers, the DGFT signed a memorandum of understanding with global e-commerce firm Amazon last year to offer capacity-building sessions, training and workshops for MSMEs across districts identified by the DGFT as part of the “District as Exports Hub” initiative. Amazon surpassed $8 billion in cumulative exports from India in 2023 and aims to achieve its ambitious target of $20 billion by next year.

India’s exports through online platforms stood at $8-10 billion in 2022-23 compared to China’s staggering figure of more than $300 billion. A key reason for this gap is the cumbersome compliance process associated with exports, especially when it comes to payment reconciliation, which is particularly challenging for new or small exporters. At the same time, global cross-border e-commerce trade was $800 billion. With India’s cross-border e-commerce exports likely to increase to $200 billion over the next six to seven years, it can become a key strategy in achieving the $2 trillion overall exports target by 2030.

India’s services export increased by only $15.8 billion in 2023-24 over 2022-23, while merchandise export declined $14 billion in the same period. Overall, India’s combined value of exported goods and services registered a marginal increase of around $2 billion in 2023-24. At a time when export growth remains tepid and the overall trade deficit is around $78 billion, establishing a supportive e-commerce ecosystem can truly give a fillip to India’s export performance. Given the patchwork of rules and export provisions framed for exporters, there is an urgent need for a separate e-commerce export policy, which can ease the compliance burden on exporters.
1. A9%
2. B6%
3. C12%
4. D3%
Answer: (D) 3%
Explanation
The relative proportion is derived by comparing India's and China's 2022-23 online export figures stated in the passage.

Data from the text:
India's online platform exports = $8-10 billion
China's online platform exports = More than $300 billion

Calculation:
Ratio = (8 to 10) / 300
Lower bound: 8 / 300 = 2.67%
Upper bound: 10 / 300 = 3.33%
Approximated average = 3%

Distractor analysis:

Option A (9%) substantially overstates India's share by threefold.

Option B (6%) doubles the actual proportion.

Option C (12%) represents a fourfold exaggeration of the reported ratio.
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Question 94
Which enterprise has been identified to mentor the MSMEs for boosting e-commerce exports?
The export hubs are expected to act as a center for favourable business infrastructure and facilities for cross-border e-commerce, including facilitating faster customs clearance of cargo and also addressing the problem of reimportation because about 25 per cent of goods in e-commerce are reimported. Additionally, the hubs will offer warehousing facilities, processing returns, labelling, product, testing, repackaging items and dedicated logistics infrastructure for connecting to and leveraging the services of nearby logistics hubs, thereby achieving agglomeration benefits for exporters.

In an attempt to leverage e-commerce platforms to support local exporters, manufacturers and MSMEs in reaching potential international buyers, the DGFT signed a memorandum of understanding with global e-commerce firm Amazon last year to offer capacity-building sessions, training and workshops for MSMEs across districts identified by the DGFT as part of the “District as Exports Hub” initiative. Amazon surpassed $8 billion in cumulative exports from India in 2023 and aims to achieve its ambitious target of $20 billion by next year.

India’s exports through online platforms stood at $8-10 billion in 2022-23 compared to China’s staggering figure of more than $300 billion. A key reason for this gap is the cumbersome compliance process associated with exports, especially when it comes to payment reconciliation, which is particularly challenging for new or small exporters. At the same time, global cross-border e-commerce trade was $800 billion. With India’s cross-border e-commerce exports likely to increase to $200 billion over the next six to seven years, it can become a key strategy in achieving the $2 trillion overall exports target by 2030.

India’s services export increased by only $15.8 billion in 2023-24 over 2022-23, while merchandise export declined $14 billion in the same period. Overall, India’s combined value of exported goods and services registered a marginal increase of around $2 billion in 2023-24. At a time when export growth remains tepid and the overall trade deficit is around $78 billion, establishing a supportive e-commerce ecosystem can truly give a fillip to India’s export performance. Given the patchwork of rules and export provisions framed for exporters, there is an urgent need for a separate e-commerce export policy, which can ease the compliance burden on exporters.
1. ADGFT
2. BWalmart
3. CAmazon
4. DDGCA
Answer: (C) Amazon
Explanation
The passage explicitly names the commercial enterprise partnering with the government to mentor MSMEs.

According to the passage, the Directorate General of Foreign Trade (DGFT) signed a memorandum of understanding with global e-commerce firm Amazon to conduct capacity-building sessions, training, and workshops for MSMEs under the District as Exports Hub initiative.

Distractor analysis:

DGFT (Option A) is the governmental regulatory authority that entered into the MoU rather than the private mentoring enterprise.

Walmart (Option B) is not mentioned anywhere in the passage text.

DGCA (Option D) is the Directorate General of Civil Aviation, which plays no role in export mentoring.
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Question 95
Which of the following statements are correct based on export related details in the passage?

A. India's services export declined in 2023-24 over 2022-23
B. India's export through online platform is less than China in 2022-23
C. Amazon targets to double or more than double its exports from India in 2024-25
D. More than 20% of goods in e-commerce are reimported
E. India's merchandize exports increased in 2023-24 over 2022-23

Choose the correct answer from the options:
The export hubs are expected to act as a center for favourable business infrastructure and facilities for cross-border e-commerce, including facilitating faster customs clearance of cargo and also addressing the problem of reimportation because about 25 per cent of goods in e-commerce are reimported. Additionally, the hubs will offer warehousing facilities, processing returns, labelling, product, testing, repackaging items and dedicated logistics infrastructure for connecting to and leveraging the services of nearby logistics hubs, thereby achieving agglomeration benefits for exporters.

In an attempt to leverage e-commerce platforms to support local exporters, manufacturers and MSMEs in reaching potential international buyers, the DGFT signed a memorandum of understanding with global e-commerce firm Amazon last year to offer capacity-building sessions, training and workshops for MSMEs across districts identified by the DGFT as part of the “District as Exports Hub” initiative. Amazon surpassed $8 billion in cumulative exports from India in 2023 and aims to achieve its ambitious target of $20 billion by next year.

India’s exports through online platforms stood at $8-10 billion in 2022-23 compared to China’s staggering figure of more than $300 billion. A key reason for this gap is the cumbersome compliance process associated with exports, especially when it comes to payment reconciliation, which is particularly challenging for new or small exporters. At the same time, global cross-border e-commerce trade was $800 billion. With India’s cross-border e-commerce exports likely to increase to $200 billion over the next six to seven years, it can become a key strategy in achieving the $2 trillion overall exports target by 2030.

India’s services export increased by only $15.8 billion in 2023-24 over 2022-23, while merchandise export declined $14 billion in the same period. Overall, India’s combined value of exported goods and services registered a marginal increase of around $2 billion in 2023-24. At a time when export growth remains tepid and the overall trade deficit is around $78 billion, establishing a supportive e-commerce ecosystem can truly give a fillip to India’s export performance. Given the patchwork of rules and export provisions framed for exporters, there is an urgent need for a separate e-commerce export policy, which can ease the compliance burden on exporters.
1. AA, B & C Only
2. BB, C & D only
3. CC, D & E Only
4. DA, B & E Only
Answer: (B) B, C & D only
Explanation
Direct evaluation of passage statements confirms the accuracy of items B, C, and D.

Verification against the passage text:

Statement B is correct: India's online exports ($8-10 billion) were far below China's (more than $300 billion).

Statement C is correct: Amazon surpassed $8 billion in 2023 and targeted $20 billion by next year, which is 2.5 times and more than double.

Statement D is correct: The passage states that about 25% of e-commerce goods are reimported, which exceeds 20%.

Distractor analysis:

Statement A is false because services exports increased by $15.8 billion.

Statement E is false because merchandise exports declined by $14 billion.

Options A, C, and D include either false statement A or false statement E.
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Question 96
The availability of coal stock with power plants this year is approximately _____ more than it was 2 years ago.
National power demand in India has hit 250 Gw, 25 per cent more than last year and 71 per cent more than in 2022. The power ministry has rightly taken pride in ensuring that thermal power stations have adequate stocks of coal to keep the lights, fans and air-conditioning on. This has been a chronic problem in previous summers, leading to prolonged outages. This year, coal stocks have reached plants well on time. As on June 23, 2024 thermal power plants had 16 days of stocks as against 9.4 days on June 23, 2022 and 12.7 days on the same day in 2023.

The Government expects to add 15.4 Gw of coal-fired capacity in 2024-25, the highest in 9 years and 90 Gw by 2032. A programme of “Coal Reforms 3.0” is on the agenda to increase the availability of coal for industrial sectors, especially steel units, with the broad objective of reducing imports to zero in the next two financial years.

India has set a target to achieve 50 per cent cumulative installed capacity from non-fossil fuel-based energy resources by 2030 and has pledged to reduce the emission intensity of its gross domestic product by 45 per cent by 2030, based on 2005 levels. The installed capacity of non-fossil power in India is now 45.3 per cent of the total capacity, putting India on track to exceed its climate-change commitments. But this is illusory progress. The absence of viable storage technologies has limited grid offtake from renewable sources.

Encouraging industry to continue its dependence on coal is unhelpful. In this respect Coal Reforms 3.0 appears to be at odds with a scheme announced earlier this year for a pilot project for green hydrogen to replace coal both as a fuel and as feedstock (which is possible even in steel produced through the blast furnace route). Given that coal-based thermal plants are responsible for a disproportionately higher share of emission than the industrial sector, the government may do well to power India’s economy in the immediate future.
1. A26%
2. B52%
3. C70%
4. D100%
Answer: (C) 70%
Explanation
The percentage increase in coal stock availability is calculated from the days of stock data given in the passage.

Data from the text:
Stock on June 23, 2024 (this year) = 16 days
Stock on June 23, 2022 (2 years ago) = 9.4 days

Calculation:
Percentage Increase = ((16 - 9.4) / 9.4) * 100
Percentage Increase = (6.6 / 9.4) * 100
Percentage Increase = 70.21% ≈ 70%

Distractor analysis:

Option A (26%) represents the increase from 2023 (12.7 days) to 2024 (16 days): (3.3 / 12.7) * 100 = 25.98% ≈ 26%.

Option B (52%) reflects an arithmetic error in the base period stock calculation.

Option D (100%) erroneously assumes stock had doubled.
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Question 97
Which of the following statement is true?
National power demand in India has hit 250 Gw, 25 per cent more than last year and 71 per cent more than in 2022. The power ministry has rightly taken pride in ensuring that thermal power stations have adequate stocks of coal to keep the lights, fans and air-conditioning on. This has been a chronic problem in previous summers, leading to prolonged outages. This year, coal stocks have reached plants well on time. As on June 23, 2024 thermal power plants had 16 days of stocks as against 9.4 days on June 23, 2022 and 12.7 days on the same day in 2023.

The Government expects to add 15.4 Gw of coal-fired capacity in 2024-25, the highest in 9 years and 90 Gw by 2032. A programme of “Coal Reforms 3.0” is on the agenda to increase the availability of coal for industrial sectors, especially steel units, with the broad objective of reducing imports to zero in the next two financial years.

India has set a target to achieve 50 per cent cumulative installed capacity from non-fossil fuel-based energy resources by 2030 and has pledged to reduce the emission intensity of its gross domestic product by 45 per cent by 2030, based on 2005 levels. The installed capacity of non-fossil power in India is now 45.3 per cent of the total capacity, putting India on track to exceed its climate-change commitments. But this is illusory progress. The absence of viable storage technologies has limited grid offtake from renewable sources.

Encouraging industry to continue its dependence on coal is unhelpful. In this respect Coal Reforms 3.0 appears to be at odds with a scheme announced earlier this year for a pilot project for green hydrogen to replace coal both as a fuel and as feedstock (which is possible even in steel produced through the blast furnace route). Given that coal-based thermal plants are responsible for a disproportionately higher share of emission than the industrial sector, the government may do well to power India’s economy in the immediate future.
1. AIndustrial sector pollute more than coal based thermal power plants
2. BThe Chronic problem of coal shortage is likely to continue
3. CCoal Reforms 3.0 is in synergy with green hydrogen pilot project
4. DCoal Reforms 3.0 will bring down coal imports to zero in the coming two years
Answer: (D) Coal Reforms 3.0 will bring down coal imports to zero in the coming two years
Explanation
The passage explicitly outlines the core objective of the government's Coal Reforms 3.0 agenda.

According to the passage, Coal Reforms 3.0 is on the agenda to increase coal availability for industrial sectors with the broad objective of reducing imports to zero in the next two financial years.

Distractor analysis:

Option A is contradicted by the passage, which states that coal-based thermal plants are responsible for a disproportionately higher share of emissions than industry.

Option B is contradicted by the statement that coal stocks have reached power stations well on time.

Option C is contradicted because the passage explicitly states Coal Reforms 3.0 appears to be at odds with the green hydrogen scheme.
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Question 98
Out of the total installed Power capacity, the installed capacity of fossil power is:
National power demand in India has hit 250 Gw, 25 per cent more than last year and 71 per cent more than in 2022. The power ministry has rightly taken pride in ensuring that thermal power stations have adequate stocks of coal to keep the lights, fans and air-conditioning on. This has been a chronic problem in previous summers, leading to prolonged outages. This year, coal stocks have reached plants well on time. As on June 23, 2024 thermal power plants had 16 days of stocks as against 9.4 days on June 23, 2022 and 12.7 days on the same day in 2023.

The Government expects to add 15.4 Gw of coal-fired capacity in 2024-25, the highest in 9 years and 90 Gw by 2032. A programme of “Coal Reforms 3.0” is on the agenda to increase the availability of coal for industrial sectors, especially steel units, with the broad objective of reducing imports to zero in the next two financial years.

India has set a target to achieve 50 per cent cumulative installed capacity from non-fossil fuel-based energy resources by 2030 and has pledged to reduce the emission intensity of its gross domestic product by 45 per cent by 2030, based on 2005 levels. The installed capacity of non-fossil power in India is now 45.3 per cent of the total capacity, putting India on track to exceed its climate-change commitments. But this is illusory progress. The absence of viable storage technologies has limited grid offtake from renewable sources.

Encouraging industry to continue its dependence on coal is unhelpful. In this respect Coal Reforms 3.0 appears to be at odds with a scheme announced earlier this year for a pilot project for green hydrogen to replace coal both as a fuel and as feedstock (which is possible even in steel produced through the blast furnace route). Given that coal-based thermal plants are responsible for a disproportionately higher share of emission than the industrial sector, the government may do well to power India’s economy in the immediate future.
1. A45.3%
2. B50%
3. C54.7%
4. D45%
Answer: (C) 54.7%
Explanation
The fossil power capacity share is derived by subtracting the non-fossil capacity percentage from total installed power capacity.

Data from the text:
Installed capacity of non-fossil power = 45.3% of total capacity

Calculation:
Fossil Power Share = 100% - 45.3% = 54.7%

Distractor analysis:

Option A (45.3%) represents the non-fossil fuel capacity share itself.

Option B (50%) represents India's non-fossil installed capacity target for 2030.

Option D (45%) represents India's GDP emission intensity reduction target by 2030.
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Question 99
Which of the following power sources have limitation of storage capacity?

A. Wind
B. Solar
C. Thermal
D. Nuclear
E. Hydral

Choose the correct answer from the options:
National power demand in India has hit 250 Gw, 25 per cent more than last year and 71 per cent more than in 2022. The power ministry has rightly taken pride in ensuring that thermal power stations have adequate stocks of coal to keep the lights, fans and air-conditioning on. This has been a chronic problem in previous summers, leading to prolonged outages. This year, coal stocks have reached plants well on time. As on June 23, 2024 thermal power plants had 16 days of stocks as against 9.4 days on June 23, 2022 and 12.7 days on the same day in 2023.

The Government expects to add 15.4 Gw of coal-fired capacity in 2024-25, the highest in 9 years and 90 Gw by 2032. A programme of “Coal Reforms 3.0” is on the agenda to increase the availability of coal for industrial sectors, especially steel units, with the broad objective of reducing imports to zero in the next two financial years.

India has set a target to achieve 50 per cent cumulative installed capacity from non-fossil fuel-based energy resources by 2030 and has pledged to reduce the emission intensity of its gross domestic product by 45 per cent by 2030, based on 2005 levels. The installed capacity of non-fossil power in India is now 45.3 per cent of the total capacity, putting India on track to exceed its climate-change commitments. But this is illusory progress. The absence of viable storage technologies has limited grid offtake from renewable sources.

Encouraging industry to continue its dependence on coal is unhelpful. In this respect Coal Reforms 3.0 appears to be at odds with a scheme announced earlier this year for a pilot project for green hydrogen to replace coal both as a fuel and as feedstock (which is possible even in steel produced through the blast furnace route). Given that coal-based thermal plants are responsible for a disproportionately higher share of emission than the industrial sector, the government may do well to power India’s economy in the immediate future.
1. AA, C & D Only
2. BA, B & E Only
3. CB, C & D Only
4. DA, B, D & E Only
Answer: (B) A, B & E Only
Explanation
The passage notes that the absence of viable storage technologies has limited grid offtake from renewable energy sources.

Renewable energy sources subject to generation intermittency and storage limitations:

Wind energy (A): Dependent on ambient wind speeds requiring battery or mechanical storage.

Solar power (B): Confined to daylight hours, requiring battery storage for evening peak off-take.

Hydel / Hydral power (E): Subject to seasonal reservoir storage limits and run-of-the-river constraints.

Distractor analysis:

Thermal power (C) and Nuclear power (D) rely on physical fuel inventories (coal and uranium) rather than electrical energy storage constraints.

Options A, C, and D mistakenly include thermal or nuclear baseload generation.
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Question 100
How much (approximately) was the national power demand in 2022?
National power demand in India has hit 250 Gw, 25 per cent more than last year and 71 per cent more than in 2022. The power ministry has rightly taken pride in ensuring that thermal power stations have adequate stocks of coal to keep the lights, fans and air-conditioning on. This has been a chronic problem in previous summers, leading to prolonged outages. This year, coal stocks have reached plants well on time. As on June 23, 2024 thermal power plants had 16 days of stocks as against 9.4 days on June 23, 2022 and 12.7 days on the same day in 2023.

The Government expects to add 15.4 Gw of coal-fired capacity in 2024-25, the highest in 9 years and 90 Gw by 2032. A programme of “Coal Reforms 3.0” is on the agenda to increase the availability of coal for industrial sectors, especially steel units, with the broad objective of reducing imports to zero in the next two financial years.

India has set a target to achieve 50 per cent cumulative installed capacity from non-fossil fuel-based energy resources by 2030 and has pledged to reduce the emission intensity of its gross domestic product by 45 per cent by 2030, based on 2005 levels. The installed capacity of non-fossil power in India is now 45.3 per cent of the total capacity, putting India on track to exceed its climate-change commitments. But this is illusory progress. The absence of viable storage technologies has limited grid offtake from renewable sources.

Encouraging industry to continue its dependence on coal is unhelpful. In this respect Coal Reforms 3.0 appears to be at odds with a scheme announced earlier this year for a pilot project for green hydrogen to replace coal both as a fuel and as feedstock (which is possible even in steel produced through the blast furnace route). Given that coal-based thermal plants are responsible for a disproportionately higher share of emission than the industrial sector, the government may do well to power India’s economy in the immediate future.
1. A200 GW
2. B175 GW
3. C62.5 GW
4. D146 GW
Answer: (D) 146 GW
Explanation
National power demand in 2022 is calculated by reversing the reported 71 per cent demand growth to current levels.

Data from the text:
Current national power demand (2024) = 250 Gw
Demand growth since 2022 = 71 per cent

Calculation:
Demand_2024 = Demand_2022 * (1 + 0.71)
250 = Demand_2022 * 1.71
Demand_2022 = 250 / 1.71
Demand_2022 = 146.19 Gw ≈ 146 GW

Distractor analysis:

Option A (200 GW) represents power demand in 2023 (250 / 1.25 = 200 GW), using the 25% growth figure over last year.

Option B (175 GW) understates the growth calculation.

Option C (62.5 GW) calculates 25% of 250 GW.
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Attempt Paper 2 — Commerce · Shift 1 as a timed test

Exam	UGC NET September 2024
Papers	Paper 2 (Commerce)
Exam date(s)	September 3, 2024
Shift(s)	Shift 1 · Shift 2
Paper 2 questions	200 questions · 120 minutes · 200 marks
Total	200 questions
Marking scheme	+2 per correct answer · No negative marking

LIST I	LIST II
A. Capital Asset Pricing Model	I. E/V γE + D/V γD (1−TC)
B. Gordon Model	II. RE = Rf + βE (RM − Rf)
C. Weighted Average Cost of Capital	III. P = m (D + E/3)
D. Traditional Model	IV. P₀ = E₁(1−b) / (k−br)

LIST I	LIST II
A. Joint occurance of Events	I. Collective Exhaustive Events
B. Outcome of an experiment consisting of all possible events	II. Equally likely Events
C. One of the events can not be expected to occur in preference over the other	III. Compound Event
D. The occurance of one event implies that the other can not occur	IV. Mutually Exclusive Events

LIST I	LIST II
A. Informal organisation	I. Grouping of jobs of similar nature
B. Formal organisation	II. Interaction among people at work gives rise to a network of social-relationship among employees
C. Divisional structure	III. The organisation structure comprises separate business units
D. Functional structure	IV. Specifies clearly the boundaries of authority and responsibility

LIST I	LIST II
A. Organisational Structure	I. Refers to the delegation of authority throughout the organisation.
B. Span of Management	II. Groups activities on the basis of products.
C. Divisional Structure	III. Refers to the number of subordinates under a supervisor.
D. Decentralisation	IV. The framework within which managerial and operating tasks are operated.

List-I (Personality Traits)	List-II (Descriptive Characteristics)
A. Conscientiousness	I. Outgoing
B. Agreeableness	II. Caring
C. Extraversion	III. Creative
D. Openness to experience	IV. Dependable

List-I (Ind AS)	List-II (Related)
A. Ind AS-12	I. Leases
B. Ind AS-17	II. Borrowing Costs
C. Ind AS-19	III. Employee Benefits
D. Ind AS-23	IV. Income Taxes

LIST I	LIST II
A. Unity of Command	I. Maintaining high morale among employees is imperative
B. Unity of Direction	II. Hierarchical, formalised communication channel
C. Scalar Chain	III. Functions have only one plan and one boss
D. Espirit de Corps	IV. Sub-ordinates reports to only one boss

LIST I Technique	LIST II Description
A. Gordon Technique	I. Teaching the importance of resolving matters
B. Morphological Analysis	II. Insight into a given interaction
C. Built-in- Tension	III. Listing of alternative solution to problems
D. Manodrama	IV. Steering a discussion to crystallise solutions

LIST I Instruments	LIST II Market
A. Forwards	I. Primary Market
B. Certificate of Deposits	II. Money Market
C. FPO	III. Derivative Market
D. IPO	IV. Stock Market

LIST I Trader	LIST II Function/ Activity
A. Hedger	I. Buying and selling shares quickly
B. Speculator	II. Reducing investment Risk
C. Arbitrageur	III. Taking increased Risk willingly
D. Scalper	IV. Taking advantage of the mismatch of the prices in two markets

LIST I	LIST II
A. Transfer of ownership	I. Negotiable Instrument
B. Sale of goodwill after dissolution	II. Contract of Sale of Goods
C. Buy back of shares	III. Dissolution of Partnership Firm
D. Promissory Note	IV. Share Capital of Company

LIST I	LIST II
A. Personal selling	I. Commercially significant news
B. Advertising	II. Advertising within buses, railway compartments
C. Transit advertising	III. Non-personal communication
D. Publicity	IV. Two way communication

LIST I	LIST II
A. Buyer's Mind	I. Members of Social-club
B. Personal Factor	II. Motivation
C. Psychological Factor	III. Life Style
D. Reference Group	IV. Black Box

LIST I Act/ Institution	LIST II Year
A. Consumer Protection Act	I. 1964
B. FEMA	II. 1945
C. IMF	III. 1999
D. UNCTAD	IV. 2019

LIST I	LIST II
A. Right to Safety	I. Consumers have a right against the marketing of goods, products or services which are hazardous to life & property.
B. Right to be assured	II. Consumers have a right to know about the quality, quantity, potency, purity, standard and price of goods or services.
C. Right to be informed	III. Consumers have a right to be assured that their interest will receive due consideration at appropriate commission
D. Right to be heard	IV. Consumer has the opportunity to choose from a wide range of products at reasonable rates.

LIST I	LIST II
A. Tampering with computer source documents (Sec.65)	I. Imprisonment upto 2 years and/or fine upto ₹ 1 lakh
B. Penalty for misrepresentation (Sec.71)	II. Imprisonment upto 3 years, or fine of ₹ 2 lakh or both
C. Penalty for Breach of confidentiality and privacy (Sec.72)	III. Imprisonment upto 2 years or fine which may extend to one lakh rupees or with both.
D. Punishment for cyber terrorism (Sec.66F)	IV. Imprisonment extends to imprisonment for life.

LIST I (Section)	LIST II (Ceiling limit)
A. 80- C	I. 50,000
B. 80- CCD (1)	II. 10% of salary or 20% of gross total income as per case
C. 80- CCD (1B)	III. 14% of salary
D. 80- CCD (2)	IV. 1,50,000

UGC NET Commerce September 2024 Question PaperPaper 2 with Answer Key

UGC NET September 2024 at a glance

Commerce

Commerce

Paper 2 — Commerce · Shift 1

Question 1

Question 2

Question 3

Question 4

Question 5

Question 6

Question 7

Question 8

Question 9

Question 10

Question 11

Question 12

Question 13

Question 14

Question 15

Question 16

Question 17

Question 18

Question 19

Question 20

Question 21

Question 22

Question 23

Question 24

Question 25

Question 26

Question 27

Question 28

Question 29

Question 30

Question 31

Question 32

Question 33

Question 34

Question 35

Question 36

Question 37

Question 38

Question 39

Question 40

Question 41

Question 42

Question 43

Question 44

Question 45

Question 46

Question 47

Question 48

Question 49

Question 50

Question 51

Question 52

Question 53

Question 54

Question 55

Question 56

Question 57

Question 58

Question 59

Question 60

Question 61

Question 62

Question 63

Question 64

Question 65

Question 66

Question 67

Question 68

Question 69

Question 70

Question 71

Question 72

Question 73

Question 74

Question 75