The complete UGC NET October 2022 question paper for Commerce, covering Paper 1 (General Aptitude) and Paper 2 (Commerce). Every question below is shown with its options and the correct answer, and a detailed explanation you can unlock by signing in. All 150 questions are free to practise.
| Exam | UGC NET October 2022 |
|---|---|
| Papers | Paper 1 (General Aptitude) and Paper 2 (Commerce) |
| Exam date(s) | October 14, 2022 |
| Shift(s) | Shift 1 |
| Paper 1 questions | 50 questions · 60 minutes · 100 marks |
| Paper 2 questions | 100 questions · 120 minutes · 200 marks |
| Total | 150 questions |
| Marking scheme | +2 per correct answer · No negative marking |
UGC NET October 2022 · Commerce sitting
50 questions with the answer key and explanations.
Total number of Laptops of models A, B and E produced in 2019 was:
The following table presents the percentage (%) distribution of production of various models of Laptop (A–F) manufactured by a company over two consecutive years in 2019 and 2020. The total number of Laptops produced in 2019 was 35 lakh and in 2020, it was 44 lakhs.
| Year | A | B | C | D | E | F |
|---|---|---|---|---|---|---|
| 2019 | 30% | 15% | 20% | 10% | 15% | 10% |
| 2020 | 40% | 20% | 15% | 10% | 10% | 5% |
Answer: (C) 21.00 lakh
Explanation
What is the ratio of number of Model-F Laptops produced in 2019 to the number of Model-C Laptops produced in 2020?
The following table presents the percentage (%) distribution of production of various models of Laptop (A–F) manufactured by a company over two consecutive years in 2019 and 2020. The total number of Laptops produced in 2019 was 35 lakh and in 2020, it was 44 lakhs.
| Year | A | B | C | D | E | F |
|---|---|---|---|---|---|---|
| 2019 | 30% | 15% | 20% | 10% | 15% | 10% |
| 2020 | 40% | 20% | 15% | 10% | 10% | 5% |
Answer: (B) 35:66
Explanation
What was the difference in the number of Model-B Laptops produced in 2019 and 2020?
The following table presents the percentage (%) distribution of production of various models of Laptop (A–F) manufactured by a company over two consecutive years in 2019 and 2020. The total number of Laptops produced in 2019 was 35 lakh and in 2020, it was 44 lakhs.
| Year | A | B | C | D | E | F |
|---|---|---|---|---|---|---|
| 2019 | 30% | 15% | 20% | 10% | 15% | 10% |
| 2020 | 40% | 20% | 15% | 10% | 10% | 5% |
Answer: (A) 3.55 lakh
Explanation
If the percentage production of Model-A Laptops in 2020 was same as that in 2019, then the number of Model-A Laptops produced in 2020 would have been:
The following table presents the percentage (%) distribution of production of various models of Laptop (A–F) manufactured by a company over two consecutive years in 2019 and 2020. The total number of Laptops produced in 2019 was 35 lakh and in 2020, it was 44 lakhs.
| Year | A | B | C | D | E | F |
|---|---|---|---|---|---|---|
| 2019 | 30% | 15% | 20% | 10% | 15% | 10% |
| 2020 | 40% | 20% | 15% | 10% | 10% | 5% |
Answer: (B) 13.2 Lakh
Explanation
If 90% of the Model-D Laptops produced in each year were sold by the company, then how many Model-D Laptops remained unsold?
The following table presents the percentage (%) distribution of production of various models of Laptop (A–F) manufactured by a company over two consecutive years in 2019 and 2020. The total number of Laptops produced in 2019 was 35 lakh and in 2020, it was 44 lakhs.
| Year | A | B | C | D | E | F |
|---|---|---|---|---|---|---|
| 2019 | 30% | 15% | 20% | 10% | 15% | 10% |
| 2020 | 40% | 20% | 15% | 10% | 10% | 5% |
Answer: (C) 79000
Explanation
A drawing that charts the relationships among ideas is known as
Answer: (B) Concept map
Explanation
Cyclical phases/subprocesses of self regulated learning model by Zimmerman operate as
A. Task Analysis
B. Self-motivation beliefs
C. Self-control
D. Self-observation
E. Self- Judgement
F. Self-Reaction
Choose the correct answer from the options given below:
Answer: (A) (A), (B), (C), (D), (E), (F)
Explanation
Given below are two statements:
Statement I: Extrinsically motivated students are driven by rewards and praise.
Statement II: Intrinsically motivated students engage with a subject for the personal satisfaction it brings.
In the light of the above statements, choose the correct answer from the options given below:
Answer: (A) Both Statement I and Statement II are true
Explanation
Identify the tools for shared viewing of visual and other interactive content within real-time environments.
A. Virtual whiteboard
B. Slide showing
C. Polling
D. Quizzing
E. Avatars
Choose the most appropriate answer from the options given below:
Answer: (A) (A), (B), (C), (D) only
Explanation
Match List I with List II:
| List I: Bigg’s Presage-Process-Performance model of learning | List II: Factors |
|---|---|
| (A) Learning Outcome | (I) Prior Knowledge |
| (B) Learning Focused Activities | (II) Satisfaction, Affective involvement |
| (C) Student Characteristics | (III) Ongoing approach to learning |
| (D) Teaching Context | (IV) Assessment |
Answer: (C) (A)-(II), (B)-(III), (C)-(I), (D)-(IV)
Explanation
Match List I with List II:
| List I: Research Methodology | List II: Approaches/Beliefs |
|---|---|
| (A) Source criticism | (I) The observer is the part of what is being observed |
| (B) Positivism | (II) Reality cannot be known with certainty |
| (C) Interpretivism | (III) The process of evaluating the qualities of origin of information |
| (D) Post-Positivism | (IV) Human interests are irrelevant |
Answer: (C) (A)-(III), (B)-(IV), (C)-(I), (D)-(II)
Explanation
Which of the following represent the Quantitative Research methodology?
A. One to One Interview
B. Survey research
C. Focus groups
D. Correlation research
E. Descriptive research
Choose the correct answer from the options given below:
Answer: (B) (B), (D), (E) Only
Explanation
Relics such as fingerprints are considered credible by which of the following Research methodology?
Answer: (C) Historical
Explanation
Which of the following referencing style is used for research in the field of Business, History and Arts?
Answer: (C) Chicago style
Explanation
Given below are two statements:
Statement I: While developing a consent form an explanation of the purpose of the study, the reason for the selection of the participants should be explicit.
Statement II: However, there is no need to give a description of any potential risks to the participants.
In the light of the above statements, choose the correct answer from the options given below:
Answer: (C) Statement I is true but Statement II is false
Explanation
Exceptional classroom communication will result in
Answer: (B) Noticeable student achievement
Explanation
The Internet-based communication for learning is
A. Isolated
B. Inter-dependent
C. Interactive
D. Automatic
E. Wide-ranging
Choose the correct answer from the options given below:
Answer: (C) (C), (D), (E) Only
Explanation
Given below are two statements:
Statement I: Through attention frame, it is possible to assess the rate at which communicated content is brought to the notice of the people.
Statement II: In modern societies, the attention frames are uniform, unrefined, and non-interactive when all the frames available in the world are taken into account.
In the light of the above statements, choose the correct answer from the options given below:
Answer: (C) Statement I is true but Statement II is false
Explanation
Given below are two statements: One is labeled as Assertion A and the other is labeled as Reason R.
Assertion (A): The understanding of communication as a ritual is not a radical view.
Reason (R): The hegemonic view of transmission of communication is no longer valid.
In the light of the above statements, choose the correct answer from the options given below:
Answer: (D) (A) is false but (R) is true
Explanation
Identify the correct sequence of barriers to effective communication.
A. Physical
B. Perceptual
C. Emotional
D. Cultural
E. Semantic
Choose the correct answer from the options given below:
Answer: (A) (A), (B), (C), (D), (E)
Explanation
400 students took a mock test; 60% of the boys and 80% of the girls cleared the cut off in the test. If the total percentage of students clearing the cut off in the test is 65%, then how many girls appeared in the test?
Answer: (A) 100
Explanation
Find the principal if the compound interest is charged on the principal at the rate of 16 2/3% per annum for two years and the sum becomes ₹ 196.
Answer: (B) ₹ 144
Explanation
A Car travels 25 km/hour faster than a bus for a journey of 500 Km, and the bus takes 10 hours more than the car.
Statement I: Speed of the car is 45 km/hour.
Statement II: Speed of the bus is 20 km/hour.
In the light of the above statements, choose the correct answer from the options given below:
Answer: (B) Both Statement I and Statement II are false
Explanation
A sum of ₹ 53 is divided among A, B and C in such a way that A gets ₹ 7 more than what B gets and B gets ₹ 8 more than what C gets. The ratio of their shares is:
Answer: (C) 25:18:10
Explanation
Match List I with List II:
| List I: Number Series | List II: Value of P in the Series |
|---|---|
| (A) 2, 9, 28, 65, 126, P, .... | (I) 220 |
| (B) 2, 10, 30, 68, 130, P, .... | (II) 222 |
| (C) 3, 4, 11, 30, 67, 128, P, ... | (III) 217 |
| (D) 5, 12, 31, 68, 129, P, ..... | (IV) 219 |
Answer: (C) (A)-(III), (B)-(II), (C)-(IV), (D)-(I)
Explanation
The standard form categorical proposition of ‘Roses are fragrant’ is
Answer: (D) All Roses are fragrant things.
Explanation
Match List I with List II:
| List I: In a square of opposition | List II: Resultant |
|---|---|
| (A) ‘A’ being given false | (I) ‘E’ is false |
| (B) ‘E’ being given false | (II) ‘E’ is true |
| (C) ‘I’ being given false | (III) ‘I’ is undetermined |
| (D) ‘O’ being given false | (IV) ‘I’ is true |
Answer: (B) (A)-(III), (B)-(IV), (C)-(II), (D)-(I)
Explanation
Which one of the following formal fallacies is committed in the given argument?
All athletes are sportspersons.
No actor is an athlete.
Therefore no actors are sportspersons.
Answer: (A) Fallacy of Illicit process of Major Term
Explanation
Which of the following pramanas are accepted as valid by the Naiyayikas?
A. Perception
B. Inference
C. Presumption
D. Verbal Testimony
E. Comparison
Choose the correct answer from the options given below:
Answer: (C) (A), (B), (D) and (E) Only
Explanation
Given below are two statements:
Statement I: In Anvaya-Vyatireki; middle term is both positively and negatively related to the major term.
Statement II: The knowledge of vyapti in Anvaya-vyatireki is arrived at through the joint method of agreement in presence and in absence.
In the light of the above statements, choose the correct answer from the options given below:
Answer: (A) Both Statement I and Statement II are true
Explanation
Which of the following is the act of obtaining a password or other confidential information from a person within an organization by using unauthorized means such as feigning an emergency situation?
Answer: (A) Social engineering
Explanation
Arrange the following different types of computer networks in an ascending order on the basis of geographical area implied.
A. MAN
B. WAN
C. LAN
Choose the correct answer from the options given below:
Answer: (C) (C), (A), (B)
Explanation
Given below are two statements with regard to websites:
Statement I: Twitter allows users to send small posts known as ‘tweets’ upto 140 characters in length.
Statement II: By default, blogs display posts in chronological order on the home page with the earliest post at the top.
In the light of the above statements, choose the correct answer from the options given below:
Answer: (B) Both Statement I and Statement II are false
Explanation
With respect to RAM and ROM, which of the following statements are true?
A. ROM is Real optical memory.
B. RAM stores the instructions you are currently working on.
C. ROM stores the BIOS.
D. RAM allows the user to read and write data.
E. Both RAM and ROM lose their data when the power is turned off.
Choose the correct answer from the options given below:
Answer: (B) (B), (C) and (D) only
Explanation
Match List I with List II:
| List I: Computer terms | List II: Description |
|---|---|
| (A) Hub | (I) Input device |
| (B) Joystick | (II) Operating system |
| (C) Notepad | (III) Network device |
| (D) Android | (IV) Text editor |
Answer: (C) (A)-(III), (B)-(I), (C)-(IV), (D)-(II)
Explanation
In 2018, the Original Framework Agreement on establishment of International Solar Alliance was amended to extend the scope of its membership to
Answer: (A) All member states of United Nations
Explanation
Given below are two statements:
Statement I: Atmospheric stability is important because it determines the ability of pollutants to disperse vertically in the atmosphere.
Statement II: In summer season in India, the atmosphere is generally stable.
In the light of the above statements, choose the correct answer from the options given below:
Answer: (C) Statement I is true but Statement II is false
Explanation
Arsenic pollution in ground water is due to
Answer: (C) Acids of arsenic
Explanation
Identify the correct sequence of the following countries in respect of their ranking in Sustainable Development Index 2020.
A. China
B. USA
C. Brazil
D. Russia
E. India
Choose the correct answer from the options given below:
Answer: (B) B > A > C > D > E
Explanation
What is the correct sequence of various components of biogas in terms of their abundance?
A. Ammonia (NH3)
B. Hydrogen Sulfide (H2S)
C. Methane (CH4)
D. Carbon dioxide (CO2)
Choose the correct answer from the options given below:
Answer: (D) C > D > B > A
Explanation
NITI Aayog is a/an
Answer: (C) Advisory body to GOI
Explanation
The University Grants Commission was constituted on the recommendation of which of the following?
Answer: (C) Radha Krishnan Commission
Explanation
Given below are two statements:
Statement I: Education for environment is a process of inquiry and action on real environmental issues.
Statement II: Children are educated about environmental problems, equality and many other issues, without development of skills and attitudes to meet these challenges.
In the light of the above statements, choose the correct answer from the options given below:
Answer: (C) Statement I is true but Statement II is false
Explanation
Match List I with List II:
| List I: Article of Indian Constitution | List II: Subject |
|---|---|
| (A) 45 | (I) Empowering the state to make special provisions for women and their education |
| (B) 30 | (II) Responsibility of education department of the Union Territories under the Central Government |
| (C) 15(3) | (III) Right to free and compulsory education |
| (D) 239 | (IV) Right of minorities to establish and administer education institutions |
Answer: (B) (A)-(III), (B)-(IV), (C)-(I), (D)-(II)
Explanation
Match List I with List II:
| List I: Institutes of National Importance | List II: Locations |
|---|---|
| (A) National Institute of Design | (I) Mohali |
| (B) National Institute of Pharmaceutical Education and Research | (II) Ahmedabad |
| (C) Vishvesaraya National Institute of Technology | (III) Vijayawada |
| (D) School of Planning and Architecture | (IV) Nagpur |
Answer: (D) (A)-(II), (B)-(I), (C)-(IV), (D)-(III)
Explanation
A major fall out of enormous amount of food wastage is
The wastage of food is substantial in every country, but some studies have shown that it is more serious in developing countries. The UNFAO had estimated that one-third of all produced food may be getting wasted. The world produces twice the amount of food that is needed, but large numbers of people are deprived of it due to wastage and other reasons. Food gets wasted at the farm, when it moves to the market and is processed, stored and shifted to shops, and finally in the kitchen. Many fruits and vegetables perish soon after harvesting. There is a need to improve production and storage practices, transport and infrastructure, cold chain systems and processing techniques. Modern technologies and packaging methods are needed. But even in countries where these facilities are available, wastage is high. So, the most important requirement is to improve popular awareness of the need to ensure that food is not wasted in any form, at any stage. China has launched a clean plate campaign against wastage. It is estimated that food worth at least Rs. 1 lakh crore is wasted in India, and this does not include wastage of cooked food. A part of that should be enough to feed the larger numbers of hungry people in the country, which is ranked 94 out of 107 countries in the global hunger index. Food is wasted massively at weddings and on other occasions. The Delhi Government had, in pre-Covid times, thought of restricting the number of guests at weddings to reduce wastage of food. The UN report says that reducing food waste would also cut greenhouse gas emissions and slow the destruction of nature through land conversion and pollution. Avoiding food wastage should therefore became a national mission. It will have very positive environmental, social and economic impacts. In India, it is stated that the household food wastage is 50 kg per capita per year, which is less than in countries like the US and China. It is not because of efficient use of food, because of overall availability of food.
Answer: (C) Large number people going hungry
Explanation
What are the measures suggested to reduce food wastage?
A. Better storage and transport facilities
B. Establishment of cold chain systems
C. Closure of points of food wastage
D. Restriction on weddings
Choose the correct answer from the options:
The wastage of food is substantial in every country, but some studies have shown that it is more serious in developing countries. The UNFAO had estimated that one-third of all produced food may be getting wasted. The world produces twice the amount of food that is needed, but large numbers of people are deprived of it due to wastage and other reasons. Food gets wasted at the farm, when it moves to the market and is processed, stored and shifted to shops, and finally in the kitchen. Many fruits and vegetables perish soon after harvesting. There is a need to improve production and storage practices, transport and infrastructure, cold chain systems and processing techniques. Modern technologies and packaging methods are needed. But even in countries where these facilities are available, wastage is high. So, the most important requirement is to improve popular awareness of the need to ensure that food is not wasted in any form, at any stage. China has launched a clean plate campaign against wastage. It is estimated that food worth at least Rs. 1 lakh crore is wasted in India, and this does not include wastage of cooked food. A part of that should be enough to feed the larger numbers of hungry people in the country, which is ranked 94 out of 107 countries in the global hunger index. Food is wasted massively at weddings and on other occasions. The Delhi Government had, in pre-Covid times, thought of restricting the number of guests at weddings to reduce wastage of food. The UN report says that reducing food waste would also cut greenhouse gas emissions and slow the destruction of nature through land conversion and pollution. Avoiding food wastage should therefore became a national mission. It will have very positive environmental, social and economic impacts. In India, it is stated that the household food wastage is 50 kg per capita per year, which is less than in countries like the US and China. It is not because of efficient use of food, because of overall availability of food.
Answer: (A) (A) and (B)
Explanation
The clean plate campaign indicates the need for __________ to reduce food wastage.
The wastage of food is substantial in every country, but some studies have shown that it is more serious in developing countries. The UNFAO had estimated that one-third of all produced food may be getting wasted. The world produces twice the amount of food that is needed, but large numbers of people are deprived of it due to wastage and other reasons. Food gets wasted at the farm, when it moves to the market and is processed, stored and shifted to shops, and finally in the kitchen. Many fruits and vegetables perish soon after harvesting. There is a need to improve production and storage practices, transport and infrastructure, cold chain systems and processing techniques. Modern technologies and packaging methods are needed. But even in countries where these facilities are available, wastage is high. So, the most important requirement is to improve popular awareness of the need to ensure that food is not wasted in any form, at any stage. China has launched a clean plate campaign against wastage. It is estimated that food worth at least Rs. 1 lakh crore is wasted in India, and this does not include wastage of cooked food. A part of that should be enough to feed the larger numbers of hungry people in the country, which is ranked 94 out of 107 countries in the global hunger index. Food is wasted massively at weddings and on other occasions. The Delhi Government had, in pre-Covid times, thought of restricting the number of guests at weddings to reduce wastage of food. The UN report says that reducing food waste would also cut greenhouse gas emissions and slow the destruction of nature through land conversion and pollution. Avoiding food wastage should therefore became a national mission. It will have very positive environmental, social and economic impacts. In India, it is stated that the household food wastage is 50 kg per capita per year, which is less than in countries like the US and China. It is not because of efficient use of food, because of overall availability of food.
Answer: (B) Public awareness
Explanation
Food wastage also causes
The wastage of food is substantial in every country, but some studies have shown that it is more serious in developing countries. The UNFAO had estimated that one-third of all produced food may be getting wasted. The world produces twice the amount of food that is needed, but large numbers of people are deprived of it due to wastage and other reasons. Food gets wasted at the farm, when it moves to the market and is processed, stored and shifted to shops, and finally in the kitchen. Many fruits and vegetables perish soon after harvesting. There is a need to improve production and storage practices, transport and infrastructure, cold chain systems and processing techniques. Modern technologies and packaging methods are needed. But even in countries where these facilities are available, wastage is high. So, the most important requirement is to improve popular awareness of the need to ensure that food is not wasted in any form, at any stage. China has launched a clean plate campaign against wastage. It is estimated that food worth at least Rs. 1 lakh crore is wasted in India, and this does not include wastage of cooked food. A part of that should be enough to feed the larger numbers of hungry people in the country, which is ranked 94 out of 107 countries in the global hunger index. Food is wasted massively at weddings and on other occasions. The Delhi Government had, in pre-Covid times, thought of restricting the number of guests at weddings to reduce wastage of food. The UN report says that reducing food waste would also cut greenhouse gas emissions and slow the destruction of nature through land conversion and pollution. Avoiding food wastage should therefore became a national mission. It will have very positive environmental, social and economic impacts. In India, it is stated that the household food wastage is 50 kg per capita per year, which is less than in countries like the US and China. It is not because of efficient use of food, because of overall availability of food.
Answer: (D) Environmental pollution
Explanation
Stoppage of food wastage is needed in the interest of
The wastage of food is substantial in every country, but some studies have shown that it is more serious in developing countries. The UNFAO had estimated that one-third of all produced food may be getting wasted. The world produces twice the amount of food that is needed, but large numbers of people are deprived of it due to wastage and other reasons. Food gets wasted at the farm, when it moves to the market and is processed, stored and shifted to shops, and finally in the kitchen. Many fruits and vegetables perish soon after harvesting. There is a need to improve production and storage practices, transport and infrastructure, cold chain systems and processing techniques. Modern technologies and packaging methods are needed. But even in countries where these facilities are available, wastage is high. So, the most important requirement is to improve popular awareness of the need to ensure that food is not wasted in any form, at any stage. China has launched a clean plate campaign against wastage. It is estimated that food worth at least Rs. 1 lakh crore is wasted in India, and this does not include wastage of cooked food. A part of that should be enough to feed the larger numbers of hungry people in the country, which is ranked 94 out of 107 countries in the global hunger index. Food is wasted massively at weddings and on other occasions. The Delhi Government had, in pre-Covid times, thought of restricting the number of guests at weddings to reduce wastage of food. The UN report says that reducing food waste would also cut greenhouse gas emissions and slow the destruction of nature through land conversion and pollution. Avoiding food wastage should therefore became a national mission. It will have very positive environmental, social and economic impacts. In India, it is stated that the household food wastage is 50 kg per capita per year, which is less than in countries like the US and China. It is not because of efficient use of food, because of overall availability of food.
Answer: (D) Making food available to all
Explanation
100 questions with the answer key and explanations.
Match List I with List II:
| List I (Type of Agreement) | List II (Explanation) |
|---|---|
| a. NAMA | i. Liberation of International Investments |
| b. GATTs | ii. Includes industrial goods, textile, jewellery, fish and fisheries products and manufacturing industries |
| c. TRIMs | iii. Liberalisation of trade in goods and services |
| d. TRIPs | iv. Provides monopoly power to owners of intellectual property |
Answer: (C) (a)-(ii), (b)-(iii), (c)-(i), (d)-(iv)
Explanation
Banks are not required to deduct the TDS from depositors who have submitted declaration in which one of the following forms under the Income Tax Rule, 1962?
Answer: (C) Form 15(G)
Explanation
Match List I with List II:
| List I (PLC Stage) | List II (Communication Strategy) |
|---|---|
| a. Introduction | i. Stress, brand differences and benefits and encourage brand switching |
| b. Maturity | ii. Build awareness and interest in mass market |
| c. Growth | iii. Reduce to minimal level needed to retain customers |
| d. Decline | iv. Build product awareness and trial among dealers |
Answer: (B) (a)-(iv), (b)-(i), (c)-(ii), (d)-(iii)
Explanation
Which of the following economic identities measure degree of monopoly in an industry?
a. Stackelberg model
b. Concentration ratio
c. Diffusion index
d. Herfindahl index
e. Elasticity reciprocal
Choose the most appropriate answer from the options given below:
Answer: (D) (b), (d) and (e) only
Explanation
Match List I with List II:
| List I (Type of test) | List II (Testing situation) |
|---|---|
| a. ANOVA Test | i. Testing whether a standard probability distribution fits well to a given frequency distribution |
| b. Z —Test | ii. Parametric test to test hypothesis of differences in more than two sample means |
| c. Chi-square Test | iii. Non-parametric test to test hypothesis of differences in more than two sample means |
| d. Kruskal-Wallis Test | iv. Hypothesis testing for mean for large samples when μ is known or unknown |
Answer: (C) (a)-(ii), (b)-(iv), (c)-(i), (d)-(iii)
Explanation
Through which one of the following influences of workers' participation in management regarding ‘safety and welfare and work-related’ issues are resolved?
Answer: (D) Co – determination
Explanation
A project requires an initial investment of ₹56,125 and its estimated salvage value is ₹3,000. The annual estimated income after depreciation and tax for its entire life of 5 years are ₹3,375, ₹5,375, ₹7,375, ₹9,375 and ₹11,375 respectively. Which of the following is the average rate of return?
Accepted answers: (A) 26.28%, (B) 124.74%, (C) 29.94%, (D) 60.88%
Explanation
Which one among the following is not a privilege or right of a holder-in-due course under Negotiable Instruments Act?
Answer: (D) Estoppel against denying the genuineness or validity of payee's endorsement
Explanation
Which of the following statements are false in the context of perfect competition?
a. Firm is a price taker
b. In the long run AR = MR = LAC = LMC
c. In the short run only AC = AR = MR = MC
d. Firm shuts down when price falls below AC
e. Firm fixes price when AR = MR
Choose the most appropriate answer from the options given below:
Answer: (B) (c), (d) and (e) only
Explanation
Which one of the following tests measures the potential of a candidate to learn new skills?
Answer: (A) Aptitude test
Explanation
Which one of the following is an example of horizontal integration in Integrated Marketing Communication?
Answer: (B) Customer Service
Explanation
Arrange the following steps of Net Present Value method in the correct sequence:
a. Calculate present value of cash flows
b. Identify the discount rate
c. Forecasting cash flows
d. Rank projects as per NPV
e. Compute NPV
Choose the correct answer from the options given below:
Answer: (C) (c), (b), (a), (e), (d)
Explanation
Which category of consumers are risk averse, technology shy and price sensitive?
Answer: (C) Late majority
Explanation
Arrange the following positions in increasing order of time spent in administration:
a. Works Manager
b. President
c. Foreman
d. Board
e. General Manager
Choose the correct answer from the options given below:
Answer: (A) (c), (a), (e), (b), (d)
Explanation
Which of the following are common difficulties in decision making?
a. Non-actionable information
b. Unsupporting environment
c. Easy acceptance by subordinates
d. Ineffective communication
e. Incorrect timing
Choose the most appropriate answer from the options given below:
Answer: (C) (a), (b), (d) and (e) only
Explanation
Which of the following are subsidiaries of RBI?
a. NHB
b. NABARD
c. EXIM
d. DICGC
e. BRBNMPL
Choose the most appropriate answer from the options given below:
Accepted answers: (A) (a), (b), (c) and (d) only, (B) (a), (b), (d) and (e) only, (C) (b), (c), (d) and (e) only, (D) (a), (c) and (e) only
Explanation
The demand curve for labour is derived from which one of the following?
Answer: (B) Value of marginal product of labour
Explanation
A partnership firm earned a profit of ₹50,000. Shagun was entitled to a salary of ₹4,000 and interest at 10% on her capital of ₹1,00,000. Amir had capital of ₹89,000 and was entitled to interest at the same rate. The remaining profit was shared equally. What amount of profit was credited to Amir’s current account?
Answer: (C) ₹22,450
Explanation
Match List I with List II:
| List I (Shape of revenue curve) | List II (Market structure) |
|---|---|
| a. Kinked revenue curve | i. Monopolistic competition |
| b. Infinitely elastic straight-line curve | ii. Perfect competition |
| c. Relatively less elastic curve | iii. Oligopoly |
| d. Relatively high elastic curve | iv. Monopoly |
Accepted answers: (A) (a)-(iv), (b)-(iii), (c)-(ii), (d)-(i), (D) (a)-(iii), (b)-(ii), (c)-(iv), (d)-(i)
Explanation
Match List I with List II:
| List I (Accounting Standard) | List II (Description) |
|---|---|
| a. Ind-AS:1 | i. Investments in Associates and Joint ventures |
| b. Ind-AS:8 | ii. Presentation of Financial Statements |
| c. Ind-AS:28 | iii. Interim Financial Reporting |
| d. Ind-AS:34 | iv. Accounting policies, changes in Accounting Estimates and Errors |
Answer: (B) (a)-(ii), (b)-(iv), (c)-(i), (d)-(iii)
Explanation
Which one of the following products requires intensive modification in the international arena?
Answer: (B) Cosmetics
Explanation
Residential status of an assessee is determined for which one of the following?
Answer: (A) Previous year
Explanation
Which one of the following statements is correct under the Negotiable Instruments Act?
Answer: (A) A cheque is always drawn on a banker
Explanation
Arrange the following pricing actions over a product life cycle in the correct sequence:
a. Gradual rise in price
b. Product improvement/market segmentation
c. Gradual reduction to retain sales
d. Skimming pricing
e. Large price cuts
Choose the correct answer from the options given below:
Answer: (D) (d), (a), (b), (c), (e)
Explanation
Which of the following are country risk rating agencies/indexes?
a. BERI
b. EIU
c. NCTI
d. ITPO
e. PRS ICRG
Choose the most appropriate answer from the options given below:
Answer: (B) (a), (b) and (e) only
Explanation
Which of the following are properties of a normal distribution?
a. It may be symmetrical or skewed
b. It is uni-mode, bell-shaped and symmetrical
c. It is asymptotic to the X-axis
d. n and p are its parameters
e. μ and σ are its parameters
Choose the most appropriate answer from the options given below:
Answer: (B) (b), (c) and (e) only
Explanation
Which of the following statements regarding short-term production and cost are true?
a. Economic rent is the same as economic profit
b. Imputed cost is rent of a hired building
c. When AC = MC, AC is minimum
d. When MC is rising, AC > MC
e. Output is optimum when AC = MC
Choose the most appropriate answer from the options given below:
Answer: (B) (a), (c) and (e) only
Explanation
Which mode of foreign market entry involves the highest risk and profit potential?
Answer: (C) Direct investment
Explanation
Which of the following measures inflation in the ecosystem?
a. Phillips
b. CPI
c. Misery
d. GDP deflator
e. Fisher
Choose the most appropriate answer from the options given below:
Answer: (D) (b) and (d) only
Explanation
Arrange the following steps in the process of an export deal in the correct sequence:
a. Confirm export deal
b. Receive letter of credit
c. Identify and negotiate with importer
d. Receive export order
e. Examine thoroughly and ask for amendment, if necessary
Choose the correct answer from the options given below:
Answer: (B) (c), (a), (d), (e), (b)
Explanation
Arrange the following steps in PERT/CPM in the correct sequence:
a. Identify critical path
b. Draw the network
c. Identify dependencies
d. Estimate completion time
e. Define activities
Choose the correct answer from the options given below:
Answer: (B) (e), (c), (b), (d), (a)
Explanation
Tax audit is compulsory for a person carrying on profession when gross receipts exceed which one of the following limits?
Answer: (D) ₹50 lakhs
Explanation
Which model of Human Resource Accounting was developed by Brummet, Flamholtz and Pyle?
Answer: (B) Historical Cost Model
Explanation
Which one of the following is an example of a hybrid service offering?
Answer: (C) Restaurant meal
Explanation
Arrange the following stages of scientific research in correct sequence:
a. Induction
b. Making prediction
c. Observation of facts
d. Testing prediction
e. Development of explanations
Choose the correct answer from the options given below:
Answer: (B) (c), (a), (e), (b), (d)
Explanation
Which of the following statements are associated with Stewardship theory?
a. It is a governance approach based on sociology and psychology
b. It assumes a behaviour pattern that is trustworthy
c. The role of management is to monitor and control
d. Owners have an attitude to take risks
e. Interests of managers and principals converge
Choose the most appropriate answer from the options given below:
Answer: (B) (a), (b), (d) and (e) only
Explanation
Which of the following are inputs in economic value-to-customer pricing?
a. Buyer image of product performance
b. Warranty quality
c. Desired rate of return
d. Customer demand
e. Customer support
Choose the most appropriate answer from the options given below:
Answer: (A) (a), (b) and (e) only
Explanation
Which of the following variables are used in currency option pricing?
a. Spot exchange rate
b. Exercise rate
c. Foreign risk-free rate of return
d. Domestic risk-adjusted rate
e. Time to expiration
Choose the most appropriate answer from the options given below:
Answer: (C) (a), (b), (c) and (e) only
Explanation
Match List I with List II:
| List I (Types of lease) | List II (Description) |
|---|---|
| a. Leveraged lease | i. Mix operating and finance lease on full pay-out basis and provides for purchase option to the lease |
| b. Direct lease | ii. Financing for services and fuel in aircraft industry |
| c. Wet lease | iii. Protects leases against rate of obsolesces |
| d. Update lease | iv. Involves lessor, leases and financer, lesser provides equity and major amount is provided by financer as loan |
Answer: (B) (a)-(iv), (b)-(i), (c)-(ii), (d)-(iii)
Explanation
Match List I with List II:
| List I (Management style) | List II (Approach) |
|---|---|
| a. Task management | i. Love conquers all approach |
| b. Country club management | ii. One plus one can add up to three approach |
| c. Impoverished management | iii. Authority-obedience approach |
| d. Team management | iv. Speak no evil, hear no evil, see no evil approach |
Answer: (C) (a)-(iii), (b)-(i), (c)-(iv), (d)-(ii)
Explanation
Match List I with List II:
| List I (Auditor provision) | List II (Section) |
|---|---|
| a. Appointment of auditors by CAG | i. Section 139(5) |
| b. Qualifications and disqualifications of auditors | ii. Section 141 |
| c. Powers and duties of auditors | iii. Section 142 |
| d. Remuneration of auditors | iv. Section 143 |
Answer: (C) (a)-(i), (b)-(ii), (c)-(iv), (d)-(iii)
Explanation
Who propounded the model of sales revenue maximisation?
Answer: (D) W.J. Baumol
Explanation
Which of the following constitute the three pillars of BASEL II?
a. Minimum capital requirements
b. Supervisory review
c. Leverage
d. Market discipline
e. Capital conservation buffer
Choose the most appropriate answer from the options given below:
Answer: (C) (a), (b) and (d) only
Explanation
Assertion (A): Lien is a right to retain possession of goods until payment of price.
Reason (R): An unpaid seller in possession of goods is entitled to exercise his lien where the goods have been sold without any credit.
Answer: (A) Both (A) and (R) are correct and (R) is the correct explanation of (A)
Explanation
What is the primary motive of central banks for raising interest rates?
Answer: (B) Taming inflation
Explanation
Which one of the following measures the degree of lopsidedness of a distribution?
Answer: (C) Skewness
Explanation
Which mode of entry into a foreign market is most appropriate for a firm with little international experience?
Answer: (B) Exporting
Explanation
Which of the following losses are allowed to be carried forward and set off in subsequent years?
a. House property loss
b. Business loss
c. Speculation loss
d. Capital loss
e. Loss from owning and maintaining race horses
Choose the most appropriate answer from the options given below:
Answer: (D) (a), (b), (c), (d) and (e)
Explanation
Which one of the following is NOT a property of isoquants?
Answer: (B) They are concave to the origin
Explanation
Given the following financial details, what is the earning per share?
Answer: (B) 4
Explanation
Which of the following statements are true regarding delegation?
a. It slows decision making
b. It leads to better decisions
c. It relieves heavy workload
d. It helps create informal organisation structure
e. It trains subordinates
Choose the most appropriate answer from the options given below:
Answer: (C) (b), (c) and (e) only
Explanation
Which one of the following is a determinant of organisational culture?
Answer: (A) Leadership style
Explanation
Which one of the following is NOT an assumption of cardinal utility analysis?
Answer: (C) Diminishing marginal utility of money
Explanation
Which one of the following is NOT an advantage in case of product departmentation?
Answer: (B) Requires less managerial personnel
Explanation
Assertion (A): A firm under perfect competition earns only normal profits in the long run.
Reason (R): Market price gets fully adjusted due to changes in demand and supply and free entry and exit, so normal profit persists.
Answer: (A) Both (A) and (R) are correct and (R) is the correct explanation of (A)
Explanation
Which of the following issues are covered under the Information Technology Act?
a. Legal recognition of electronic documents
b. Redressal of grievances
c. Offenses and contraventions
d. Disputes settlements
e. Justice dispensation system for cyber crimes
Choose the most appropriate answer from the options given below:
Answer: (D) (a), (c) and (e) only
Explanation
Which of the following are non-random sampling methods?
a. Systematic
b. Quota
c. Cluster/area
d. Purposive
e. Replicated
Choose the most appropriate answer from the options given below:
Answer: (D) (b) and (d) only
Explanation
Which one of the following statements is true?
Answer: (A) The sum of absolute deviations from Median is least
Explanation
Conversion of a non-productive inactive asset (i.e. receivable) into a productive asset (viz., cash) by selling receivables to a specialist agency for collection and administration is called:
Answer: (D) Factoring
Explanation
Match List I with List II:
| List I (Model/delivery) | List II (Explanation) |
|---|---|
| a. Actual delivery | i. Seller hands over buyer key to godown |
| b. Constructive delivery | ii. Physical handing over possession goods seller to buyer |
| c. Symbolic delivery | iii. Voluntary transfer possession goods from seller to buyer |
| d. Delivery | iv. Acknowledgement by third person on behalf of and at disposal of buyer |
Answer: (B) (a)-(ii), (b)-(iv), (c)-(i), (d)-(iii)
Explanation
Which one of the following is known as safety margin for insurers?
Answer: (B) Solvency
Explanation
Which of the following are behavioural segmentation variables?
a. Life style
b. User status
c. Occasions
d. Values
e. Loyalty
Choose the most appropriate answer from the options given below:
Answer: (C) (b), (c), (d) and (e) only
Explanation
Statement I: Tax planning promotes professionalism and strengthens economic and political situation.
Statement II: Tax evasion is an act within permissible range to achieve social and economic benefits.
Answer: (C) Statement I is true but Statement II is false
Explanation
Foreign equity is preferred to domestic equity if which one of the following conditions holds?
Answer: (B) Lower dividend yield and lower capital appreciation
Explanation
Which foreign exchange exposure arises when consolidated financial statements are affected by changes in exchange rates?
Answer: (C) Translation exposure
Explanation
Arrange the following elements of a successful market offering in the correct sequence:
a. Specifics of offering
b. Monitoring goal progress
c. Ultimate criterion of success
d. Logistics of creating offering
e. Value created for target market
Choose the correct answer from the options given below:
Answer: (D) (c), (e), (a), (d), (b)
Explanation
Match List I with List II:
| List I (Earnings valuation measure) | List II (Meaning) |
|---|---|
| a. Price–earning (P.E) ratio | i. Stock price divided by accounting net worth |
| b. Earnings yield ratio | ii. Firm’s P.E ratio divided by an index P.E ratio |
| c. Price-book ratio | iii. Stock price divided by earnings per share |
| d. Relative P.E ratio | iv. Earning per share divided by stock price |
Answer: (D) (a)-(iii), (b)-(iv), (c)-(i), (d)-(ii)
Explanation
Which of the following are complete experimental research designs?
a. Factorial
b. One group after-only
c. Before-after one experiment and two control groups
d. Latin square
e. One-group before-after
Choose the most appropriate answer from the options given below:
Answer: (A) (a), (c) and (d) only
Explanation
How can a Limited Liability Partnership be wound up?
Answer: (D) Either voluntarily or by tribunal
Explanation
Which one of the following statements about regression is false?
Answer: (C) Regression coefficients of two variables may have different algebraic symbols for real life
Explanation
Which one of the following measures of central tendency is unaffected by extreme values?
Answer: (C) Positional average
Explanation
Which of the following statements regarding banking are correct?
a. ALM is concerned with mismatch risk
b. An NPA must be written off as loss in the year it is identified
c. Undisclosed reserves may be included in Tier II capital if they represent post-tax profits
d. A bank cannot accept public deposits for a period exceeding 5 years
e. Hybrid debt capital instruments may be included in Tier II capital
Choose the most appropriate answer from the options given below:
Answer: (D) (a), (c) and (e) only
Explanation
Arrange the following stages of new product development in the correct sequence:
a. Concept Development and Testing
b. Marketing Strategy Development
c. Idea Screening
d. Product Development
e. Test Marketing
Choose the correct answer from the options given below:
Answer: (B) (c), (a), (b), (d), (e)
Explanation
Assertion (A): There is a change in the old partners’ profit-sharing ratio when a new partner gets his share from all the old partners.
Reason (R): A new partner is admitted for a certain share, and the combined shares of old partners are reduced.
Answer: (A) Both (A) and (R) are correct and (R) is the correct explanation of (A)
Explanation
Arrange the following steps for computation of tax where agricultural income is included:
a. Add agricultural and non-agricultural income and calculate tax on aggregate income
b. Add agricultural income to maximum exemption limit and compute tax
c. Deduct Income tax as computed in step (b) from tax computed in step (a)
d. Claim rebate u/s 87(A)
e. Add surcharge and H&E cess @ 4%
Choose the correct answer from the options given below:
Answer: (D) (a), (b), (c), (d), (e)
Explanation
Which of the following are categories of GST rates?
a. 5%
b. 10%
c. 12%
d. 20%
e. 28%
Choose the most appropriate answer from the options given below:
Answer: (C) (a), (c) and (e) only
Explanation
Arrange the following steps of winding up by Tribunal in chronological order:
a. Settlement of list of contributories/application of assets
b. Report by company liquidator
c. Petition for winding up
d. Direction of Tribunal on report
e. Appointment of liquidator
Choose the correct answer from the options given below:
Answer: (C) (c), (e), (b), (d), (a)
Explanation
Statement I: Distribution channels are sets of interdependent organizations participating in the process of making a product available for consumption.
Statement II: All marketing channels have potential conflict and competition arising from goal incompatibility.
Accepted answers: (A) Both Statement I and Statement II are true, (B) Both Statement I and Statement II are false
Explanation
Which of the following are reasons for material usage variance?
a. Negligence in use of material
b. Changes in basic prices
c. Poor/improper machine handling
d. Wastage due to inefficient production
e. Product design usage differs from standard
Choose the most appropriate answer from the options given below:
Answer: (C) (a), (c), (d) and (e) only
Explanation
Which of the following are methods of translation of foreign financial statements?
a. Current/Non-Current
b. Temporal
c. Monetary/Non-monetary
d. Current Rate
e. Transaction/Non-transaction
Choose the most appropriate answer from the options given below:
Answer: (C) (a), (b), (c) and (d) only
Explanation
Examination of documentary evidence in support of transactions recorded in books of account is known as:
Answer: (B) Vouching
Explanation
Which of the following are assumptions of Modigliani-Miller theory?
a. Perfect capital markets
b. Heterogenous risk class
c. Absence of taxes
d. Full dividend payout
e. Same expectation of firm’s EBIT with which to evaluate value of firm
Choose the most appropriate answer from the options given below:
Answer: (B) (a), (c), (d) and (e) only
Explanation
Which policy is used by a central bank to influence savings, investments and consumer spending?
Answer: (B) Monetary policy
Explanation
Which one of the following is NOT an objective of Competition Act?
Answer: (C) Prevent monopolistic rights arising out of intellectual property
Explanation
Which of the following relationships are associated with Heckscher-Ohlin theory?
a. Production-Marketing
b. Land—Labour
c. Marketing—Capital
d. Labour—Capital
e. Technological complexities
Choose the most appropriate answer from the options given below:
Answer: (C) (b), (d) and (e) only
Explanation
Provident fund set up under the Provident Fund Act, 1952 is called:
Answer: (B) Recognised provident fund
Explanation
Under FEMA, foreign exchange does not include which one of the following?
Answer: (D) Draft drawn by banks outside India payable in foreign currency
Explanation
Which of the following are types of quota restrictions on exports/imports?
a. Single stage
b. Absolute
c. Tariff quotas
d. Value added
e. Voluntary quotas
Choose the most appropriate answer from the options given below:
Answer: (A) (b), (c) and (e) only
Explanation
Calculate the Net Annual Value of a house from the following details:
Answer: (B) ₹4,80,000
Explanation
Which one of the following relationships regarding price elasticity coefficient with change in price and change in total revenue is incorrect?
| Option | Elasticity coefficient | Change in price | Change in total revenue |
|---|---|---|---|
| A | e = 0 | Increase / Decrease | Increase / Decrease |
| B | e > 1 | Increase / Decrease | Increase / Decrease |
| C | e = 1 | Increase / Decrease | Increase / Decrease |
| D | e < 1 | Increase / Decrease | Increase / Decrease |
Answer: (D) Option D (e < 1)
Explanation
Which one of the following is not a part of the value-chain mentioned in the passage?
The Cabinet approval for seven integrated mega textile and apparel parks pan-India makes eminent sense. It would boost value addition on-site, reaping economies of scale and scope, reduce logistical and sourcing expenses, and generally step-up sector-specific competitive advantage across the board.
The value chain in yarn, fabrics and ready-mades is scattered and quite fragmented nationwide. So, for instance, while cotton is grown in Gujarat and Maharashtra, spinning takes place in Tamil Nadu, processing gets done in Rajasthan and Gujarat, and garment-making happens mostly in the National Capital Region, Bengaluru and Kolkata. The proposed mega parks, spread over 1,000 acre and more, would provide facilities for weaving, dyeing, printing, fashion designing and garment-making in one location. They would have core infrastructure such as incubation centre, plug-and-play facility, and skill development units so as to keep abreast of the latest trends in textiles and apparel. The export potential in textiles is large. We need to build a conducive and innovative ecosystem with proactive policy.
The Centre has recently announced ₹10,683 crore production-linked incentive scheme for textiles. The textiles parks scheme would have an outlay of ₹4,445 crore, and is slated to provide support for project development in the cluster mode. The recent move to provide export-oriented units rebate on state and central taxes and levies would also help. But the fact remains that the share of textiles in India's export basket has declined, and is now barely in the double digits. A recent Crisil study says that absent free trade agreements (FTAs) hurt our export performance. Decent work in the textile parks would gain custom, in today's world.
Answer: (C) Cotton production
Explanation
Which one of the following is identified as the most critical factor affecting export performance?
The Cabinet approval for seven integrated mega textile and apparel parks pan-India makes eminent sense. It would boost value addition on-site, reaping economies of scale and scope, reduce logistical and sourcing expenses, and generally step-up sector-specific competitive advantage across the board.
The value chain in yarn, fabrics and ready-mades is scattered and quite fragmented nationwide. So, for instance, while cotton is grown in Gujarat and Maharashtra, spinning takes place in Tamil Nadu, processing gets done in Rajasthan and Gujarat, and garment-making happens mostly in the National Capital Region, Bengaluru and Kolkata. The proposed mega parks, spread over 1,000 acre and more, would provide facilities for weaving, dyeing, printing, fashion designing and garment-making in one location. They would have core infrastructure such as incubation centre, plug-and-play facility, and skill development units so as to keep abreast of the latest trends in textiles and apparel. The export potential in textiles is large. We need to build a conducive and innovative ecosystem with proactive policy.
The Centre has recently announced ₹10,683 crore production-linked incentive scheme for textiles. The textiles parks scheme would have an outlay of ₹4,445 crore, and is slated to provide support for project development in the cluster mode. The recent move to provide export-oriented units rebate on state and central taxes and levies would also help. But the fact remains that the share of textiles in India's export basket has declined, and is now barely in the double digits. A recent Crisil study says that absent free trade agreements (FTAs) hurt our export performance. Decent work in the textile parks would gain custom, in today's world.
Answer: (B) Free trade agreements (FTAs)
Explanation
Which one of the following states does not contribute to the Indian textile industry as described in the passage?
The Cabinet approval for seven integrated mega textile and apparel parks pan-India makes eminent sense. It would boost value addition on-site, reaping economies of scale and scope, reduce logistical and sourcing expenses, and generally step-up sector-specific competitive advantage across the board.
The value chain in yarn, fabrics and ready-mades is scattered and quite fragmented nationwide. So, for instance, while cotton is grown in Gujarat and Maharashtra, spinning takes place in Tamil Nadu, processing gets done in Rajasthan and Gujarat, and garment-making happens mostly in the National Capital Region, Bengaluru and Kolkata. The proposed mega parks, spread over 1,000 acre and more, would provide facilities for weaving, dyeing, printing, fashion designing and garment-making in one location. They would have core infrastructure such as incubation centre, plug-and-play facility, and skill development units so as to keep abreast of the latest trends in textiles and apparel. The export potential in textiles is large. We need to build a conducive and innovative ecosystem with proactive policy.
The Centre has recently announced ₹10,683 crore production-linked incentive scheme for textiles. The textiles parks scheme would have an outlay of ₹4,445 crore, and is slated to provide support for project development in the cluster mode. The recent move to provide export-oriented units rebate on state and central taxes and levies would also help. But the fact remains that the share of textiles in India's export basket has declined, and is now barely in the double digits. A recent Crisil study says that absent free trade agreements (FTAs) hurt our export performance. Decent work in the textile parks would gain custom, in today's world.
Answer: (C) Punjab
Explanation
Assertion (A): Indian textiles can regain sheen with integrated mega parks.
Reason (R): The value chain in yarn, fabrics and ready-mades is scattered nation-wide.
The Cabinet approval for seven integrated mega textile and apparel parks pan-India makes eminent sense. It would boost value addition on-site, reaping economies of scale and scope, reduce logistical and sourcing expenses, and generally step-up sector-specific competitive advantage across the board.
The value chain in yarn, fabrics and ready-mades is scattered and quite fragmented nationwide. So, for instance, while cotton is grown in Gujarat and Maharashtra, spinning takes place in Tamil Nadu, processing gets done in Rajasthan and Gujarat, and garment-making happens mostly in the National Capital Region, Bengaluru and Kolkata. The proposed mega parks, spread over 1,000 acre and more, would provide facilities for weaving, dyeing, printing, fashion designing and garment-making in one location. They would have core infrastructure such as incubation centre, plug-and-play facility, and skill development units so as to keep abreast of the latest trends in textiles and apparel. The export potential in textiles is large. We need to build a conducive and innovative ecosystem with proactive policy.
The Centre has recently announced ₹10,683 crore production-linked incentive scheme for textiles. The textiles parks scheme would have an outlay of ₹4,445 crore, and is slated to provide support for project development in the cluster mode. The recent move to provide export-oriented units rebate on state and central taxes and levies would also help. But the fact remains that the share of textiles in India's export basket has declined, and is now barely in the double digits. A recent Crisil study says that absent free trade agreements (FTAs) hurt our export performance. Decent work in the textile parks would gain custom, in today's world.
Answer: (A) Both (A) and (R) are correct and (R) is the correct explanation of (A)
Explanation
Statement I: Both central and state governments want to promote units exporting textiles.
Statement II: The performance of textiles in India’s export basket has improved.
The Cabinet approval for seven integrated mega textile and apparel parks pan-India makes eminent sense. It would boost value addition on-site, reaping economies of scale and scope, reduce logistical and sourcing expenses, and generally step-up sector-specific competitive advantage across the board.
The value chain in yarn, fabrics and ready-mades is scattered and quite fragmented nationwide. So, for instance, while cotton is grown in Gujarat and Maharashtra, spinning takes place in Tamil Nadu, processing gets done in Rajasthan and Gujarat, and garment-making happens mostly in the National Capital Region, Bengaluru and Kolkata. The proposed mega parks, spread over 1,000 acre and more, would provide facilities for weaving, dyeing, printing, fashion designing and garment-making in one location. They would have core infrastructure such as incubation centre, plug-and-play facility, and skill development units so as to keep abreast of the latest trends in textiles and apparel. The export potential in textiles is large. We need to build a conducive and innovative ecosystem with proactive policy.
The Centre has recently announced ₹10,683 crore production-linked incentive scheme for textiles. The textiles parks scheme would have an outlay of ₹4,445 crore, and is slated to provide support for project development in the cluster mode. The recent move to provide export-oriented units rebate on state and central taxes and levies would also help. But the fact remains that the share of textiles in India's export basket has declined, and is now barely in the double digits. A recent Crisil study says that absent free trade agreements (FTAs) hurt our export performance. Decent work in the textile parks would gain custom, in today's world.
Answer: (C) Statement I is true but Statement II is false
Explanation
Assertion (A): A company having dormant status is subject to less compliance than an active company.
Reason (R): There is save of compliances for an inactive company if it gets dormant status under Section 455 of Companies Act, 2013 as compared with Companies Act, 1956.
Section 455 of Indian Companies Act, 2013 talks about a New Provision called "DORMANT COMPANY". This concept was not there in Companies Act, 1956.
A Dormant Company offers excellent advantage to the promoters who want to hold an asset or intellectual property under the corporate shield for its usage at a later stage. For instance: if a promoter wants to buy lands now for its future project at a comparatively lesser price, he may do the same through dormant company so that he can use the land for its future project. Thus, dormant company status is a new phenomenon in the Companies Act 2013 and is an excellent tool for keeping assets in the company for its future usage. A dormant company may be either a public company or a private company or a one-person company.
Certain companies, due to the nature of their business, may not be able to start any business, for a long time from the date of incorporation as for instance any business for creation of intellectual property or for a future project and has no significant accounting transaction. Such a company may be an "Inactive company". Construction Companies/Real Estate Companies/Incorporate New Companies to hold land/properties for future projects. This concept is beneficial for them. By this concept they can Incorporate Company and purchase property/land in that company and get status of Dormant Company. If a company gets status of dormant company, there are less compliance in dormant company in comparison of active company. It will help to save cost of compliances for inactive companies.
Answer: (A) Both (A) and (R) are correct and (R) is the correct explanation of (A)
Explanation
Assertion (A): There is a provision to obtain dormant status for an inactive company that does not trade.
Reason (R): A Dormant company does not trade but has significant accounting transaction.
Section 455 of Indian Companies Act, 2013 talks about a New Provision called "DORMANT COMPANY". This concept was not there in Companies Act, 1956.
A Dormant Company offers excellent advantage to the promoters who want to hold an asset or intellectual property under the corporate shield for its usage at a later stage. For instance: if a promoter wants to buy lands now for its future project at a comparatively lesser price, he may do the same through dormant company so that he can use the land for its future project. Thus, dormant company status is a new phenomenon in the Companies Act 2013 and is an excellent tool for keeping assets in the company for its future usage. A dormant company may be either a public company or a private company or a one-person company.
Certain companies, due to the nature of their business, may not be able to start any business, for a long time from the date of incorporation as for instance any business for creation of intellectual property or for a future project and has no significant accounting transaction. Such a company may be an "Inactive company". Construction Companies/Real Estate Companies/Incorporate New Companies to hold land/properties for future projects. This concept is beneficial for them. By this concept they can Incorporate Company and purchase property/land in that company and get status of Dormant Company. If a company gets status of dormant company, there are less compliance in dormant company in comparison of active company. It will help to save cost of compliances for inactive companies.
Answer: (C) (A) is correct but (R) is not correct
Explanation
Which of the following companies do not fall under a purview of Dormant company?
a. Private company
b. One person company
c. Limited and unlimited Liability companies
d. Public company
e. Government company
Choose the most appropriate answer:
Section 455 of Indian Companies Act, 2013 talks about a New Provision called "DORMANT COMPANY". This concept was not there in Companies Act, 1956.
A Dormant Company offers excellent advantage to the promoters who want to hold an asset or intellectual property under the corporate shield for its usage at a later stage. For instance: if a promoter wants to buy lands now for its future project at a comparatively lesser price, he may do the same through dormant company so that he can use the land for its future project. Thus, dormant company status is a new phenomenon in the Companies Act 2013 and is an excellent tool for keeping assets in the company for its future usage. A dormant company may be either a public company or a private company or a one-person company.
Certain companies, due to the nature of their business, may not be able to start any business, for a long time from the date of incorporation as for instance any business for creation of intellectual property or for a future project and has no significant accounting transaction. Such a company may be an "Inactive company". Construction Companies/Real Estate Companies/Incorporate New Companies to hold land/properties for future projects. This concept is beneficial for them. By this concept they can Incorporate Company and purchase property/land in that company and get status of Dormant Company. If a company gets status of dormant company, there are less compliance in dormant company in comparison of active company. It will help to save cost of compliances for inactive companies.
Accepted answers: (A) (b), (d) and (e) only, (B) (a), (c) and (d) only, (C) (a), (b) and (d) only, (D) (b), (c) and (e) only
Explanation
Which one of the following nature of business is suitable for Dormant Company?
Section 455 of Indian Companies Act, 2013 talks about a New Provision called "DORMANT COMPANY". This concept was not there in Companies Act, 1956.
A Dormant Company offers excellent advantage to the promoters who want to hold an asset or intellectual property under the corporate shield for its usage at a later stage. For instance: if a promoter wants to buy lands now for its future project at a comparatively lesser price, he may do the same through dormant company so that he can use the land for its future project. Thus, dormant company status is a new phenomenon in the Companies Act 2013 and is an excellent tool for keeping assets in the company for its future usage. A dormant company may be either a public company or a private company or a one-person company.
Certain companies, due to the nature of their business, may not be able to start any business, for a long time from the date of incorporation as for instance any business for creation of intellectual property or for a future project and has no significant accounting transaction. Such a company may be an "Inactive company". Construction Companies/Real Estate Companies/Incorporate New Companies to hold land/properties for future projects. This concept is beneficial for them. By this concept they can Incorporate Company and purchase property/land in that company and get status of Dormant Company. If a company gets status of dormant company, there are less compliance in dormant company in comparison of active company. It will help to save cost of compliances for inactive companies.
Answer: (C) Real Estate business
Explanation
Dormant company offers excellent advantage to which one of the following?
Section 455 of Indian Companies Act, 2013 talks about a New Provision called "DORMANT COMPANY". This concept was not there in Companies Act, 1956.
A Dormant Company offers excellent advantage to the promoters who want to hold an asset or intellectual property under the corporate shield for its usage at a later stage. For instance: if a promoter wants to buy lands now for its future project at a comparatively lesser price, he may do the same through dormant company so that he can use the land for its future project. Thus, dormant company status is a new phenomenon in the Companies Act 2013 and is an excellent tool for keeping assets in the company for its future usage. A dormant company may be either a public company or a private company or a one-person company.
Certain companies, due to the nature of their business, may not be able to start any business, for a long time from the date of incorporation as for instance any business for creation of intellectual property or for a future project and has no significant accounting transaction. Such a company may be an "Inactive company". Construction Companies/Real Estate Companies/Incorporate New Companies to hold land/properties for future projects. This concept is beneficial for them. By this concept they can Incorporate Company and purchase property/land in that company and get status of Dormant Company. If a company gets status of dormant company, there are less compliance in dormant company in comparison of active company. It will help to save cost of compliances for inactive companies.
Answer: (D) Promoters
Explanation
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