UGC NET Commerce January 2026 Question PaperPaper 1 & Paper 2 with Answer Key

50 questions with the answer key and explanations.

1. Question 1

   How many students are there in the four programs?

   Study carefully the table given below and answer the questions asked here under. A college has four programs B.A., B.Sc., B.Com. and B.B.A. The results of the mid-semester and end-semester tests are shown in the table given below.

   Results	B.A.	B.Sc.	B.Com.	B.B.A.
   Failed in both tests	28	23	17	27
   Failed in mid-semester test but passed in end-semester test	14	12	8	13
   Passed in mid-semester test but failed in end-semester test	6	17	9	15
   Passed in both tests	64	55	46	76

   1. A420
   2. B430
   3. C320
   4. D330

   Answer: (B) 430

   Explanation

   The total number of students across all four programs is obtained by summing the four mutually exclusive outcome categories for each program:

   • B.A.: 28 + 14 + 6 + 64 = 112
   • B.Sc.: 23 + 12 + 17 + 55 = 107
   • B.Com.: 17 + 8 + 9 + 46 = 80
   • B.B.A.: 27 + 13 + 15 + 76 = 131

   Total students = 112 + 107 + 80 + 131 = 430.

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2. Question 2

   Which program has the lowest passing percentage in end-semester test?

   Study carefully the table given below and answer the questions asked here under. A college has four programs B.A., B.Sc., B.Com. and B.B.A. The results of the mid-semester and end-semester tests are shown in the table given below.

   Results	B.A.	B.Sc.	B.Com.	B.B.A.
   Failed in both tests	28	23	17	27
   Failed in mid-semester test but passed in end-semester test	14	12	8	13
   Passed in mid-semester test but failed in end-semester test	6	17	9	15
   Passed in both tests	64	55	46	76

   1. AB.A.
   2. BB.Sc.
   3. CB.Com.
   4. DB.B.A.

   Answer: (B) B.Sc.

   Explanation

   A student passes the end-semester test if they passed only the end-semester test or passed both tests. Comparing the passing percentage across programs:

   • B.A.: (14 + 64) / 112 = 78 / 112 = 69.64%
   • B.Sc.: (12 + 55) / 107 = 67 / 107 = 62.62%
   • B.Com.: (8 + 46) / 80 = 54 / 80 = 67.50%
   • B.B.A.: (13 + 76) / 131 = 89 / 131 = 67.94%

   B.Sc. has the lowest passing percentage at 62.62%.

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3. Question 3

   Which program has the highest failure rate in the mid-semester test?

   Study carefully the table given below and answer the questions asked here under. A college has four programs B.A., B.Sc., B.Com. and B.B.A. The results of the mid-semester and end-semester tests are shown in the table given below.

   Results	B.A.	B.Sc.	B.Com.	B.B.A.
   Failed in both tests	28	23	17	27
   Failed in mid-semester test but passed in end-semester test	14	12	8	13
   Passed in mid-semester test but failed in end-semester test	6	17	9	15
   Passed in both tests	64	55	46	76

   1. AB.A.
   2. BB.Sc.
   3. CB.Com.
   4. DB.B.A.

   Answer: (A) B.A.

   Explanation

   Students failing the mid-semester test include those who failed both tests plus those who failed mid-semester but passed end-semester. Calculating the failure rate for each program:

   • B.A.: (28 + 14) / 112 = 42 / 112 = 37.50%
   • B.Sc.: (23 + 12) / 107 = 35 / 107 = 32.71%
   • B.Com.: (17 + 8) / 80 = 25 / 80 = 31.25%
   • B.B.A.: (27 + 13) / 131 = 40 / 131 = 30.53%

   B.A. has the highest failure rate at 37.50%.

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4. Question 4

   If the number of students passing a test be considered a criterion for comparison of difficulty level of two tests, then mid-semester test of which of the following programs was the least difficult?

   Study carefully the table given below and answer the questions asked here under. A college has four programs B.A., B.Sc., B.Com. and B.B.A. The results of the mid-semester and end-semester tests are shown in the table given below.

   Results	B.A.	B.Sc.	B.Com.	B.B.A.
   Failed in both tests	28	23	17	27
   Failed in mid-semester test but passed in end-semester test	14	12	8	13
   Passed in mid-semester test but failed in end-semester test	6	17	9	15
   Passed in both tests	64	55	46	76

   1. AB.A.
   2. BB.Sc.
   3. CB.Com.
   4. DB.B.A.

   Answer: (D) B.B.A.

   Explanation

   Under the criterion where a higher number of passing students indicates a less difficult test, we sum the students who passed the mid-semester test in each program:

   • B.A.: 6 + 64 = 70 students
   • B.Sc.: 17 + 55 = 72 students
   • B.Com.: 9 + 46 = 55 students
   • B.B.A.: 15 + 76 = 91 students

   B.B.A. had the largest number of students passing (91 students), making its mid-semester test the least difficult by this metric.

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5. Question 5

   What is the ratio of number of students in B.Sc. program to the number of students in B.Com. program?

   Study carefully the table given below and answer the questions asked here under. A college has four programs B.A., B.Sc., B.Com. and B.B.A. The results of the mid-semester and end-semester tests are shown in the table given below.

   Results	B.A.	B.Sc.	B.Com.	B.B.A.
   Failed in both tests	28	23	17	27
   Failed in mid-semester test but passed in end-semester test	14	12	8	13
   Passed in mid-semester test but failed in end-semester test	6	17	9	15
   Passed in both tests	64	55	46	76

   1. A80:107
   2. B107:131
   3. C107:80
   4. D80:131

   Answer: (C) 107:80

   Explanation

   Summing the total students enrolled in each requested program:

   • Total B.Sc. students: 23 + 12 + 17 + 55 = 107
   • Total B.Com. students: 17 + 8 + 9 + 46 = 80

   The ratio of students in B.Sc. to B.Com. is 107:80.

   Option A inverts the two programs (80:107), while options B and D involve the B.B.A. cohort (131).

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6. Question 6

   Arrange the following in increasing order in terms of their coverage:

   A. PAN
   B. MAN
   C. WAN
   D. LAN

   Choose the correct answer from the options given below:

   1. AD, B, A, C
   2. BA, B, D, C
   3. CA, D, B, C
   4. DB, A, D, C

   Answer: (C) A, D, B, C

   Explanation

   Computer networks are ordered by geographical coverage from smallest to largest:

   A (PAN, Personal Area Network) < D (LAN, Local Area Network) < B (MAN, Metropolitan Area Network) < C (WAN, Wide Area Network)

   The correct increasing sequence is A, D, B, C.

   • A. PAN (Personal Area Network) — covers a personal workspace within a few meters.
   • D. LAN (Local Area Network) — covers a room, office, or building.
   • B. MAN (Metropolitan Area Network) — spans a town or entire city.
   • C. WAN (Wide Area Network) — connects countries and global regions.

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7. Question 7

   Which of the following is/are true:

   A. The conversion of an O proposition is valid.
   B. The conversion of an A proposition is an A proposition.
   C. The conversion of an E proposition is conversion by limitation.
   D. The conversion of an I proposition is valid.

   Choose the correct answer from the options given below:

   1. AA and D only
   2. BA and B only
   3. CC only
   4. DD only

   Answer: (D) D only

   Explanation

   In classical categorical logic, conversion involves interchanging the subject and predicate terms:

   • A. (Invalid) — Conversion of an O proposition (Some S is not P) is invalid because it illicitly distributes the subject term in the converse.
   • B. (Invalid) — An A proposition (All S is P) converts by limitation to an I proposition (Some P is S), not to another A proposition.
   • C. (Invalid) — An E proposition (No S is P) converts simply to an E proposition (No P is S), which is simple conversion rather than conversion by limitation.
   • D. (Valid) — An I proposition (Some S is P) converts simply and validly to another I proposition (Some P is S).

   Therefore, only statement D is true.

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8. Question 8

   Match List - I with List - II.

   Choose the correct answer from the options:

   List - I (Successive discounts)	List - II (Equivalent discount)
   A. 10% and 15%	I. 28%
   B. 20% and 30%	II. 32.5%
   C. 10% and 20%	III. 23.5%
   D. 10% and 25%	IV. 44%

   1. AA-I, B-II, C-IV, D-III
   2. BA-II, B-III, C-I, D-IV
   3. CA-III, B-IV, C-I, D-II
   4. DA-IV, B-I, C-II, D-III

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

   Explanation

   The single equivalent discount for two successive discounts d1 and d2 is calculated as:

   Equivalent Discount = d1 + d2 - (d1 * d2) / 100

   A-III, B-IV, C-I, D-II

   • A. 10% and 15%: 10 + 15 - 1.5 = 23.5% (III)
   • B. 20% and 30%: 20 + 30 - 6 = 44% (IV)
   • C. 10% and 20%: 10 + 20 - 2 = 28% (I)
   • D. 10% and 25%: 10 + 25 - 2.5 = 32.5% (II)

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9. Question 9

   Measurement validity primarily relates to:

   1. AQualitative research
   2. BQuantitative research
   3. CInterpretivism
   4. DConstructionism

   Answer: (B) Quantitative research

   Explanation

   Measurement validity concerns whether an operational indicator devised to gauge a concept really measures that concept, which is a core requirement of quantitative research.

   • A. Qualitative research — relies on trustworthiness, credibility, and transferability rather than formal measurement validity metrics.
   • B. Quantitative research — correct. Concepts must be accurately operationalized and quantified.
   • C. Interpretivism — an epistemological position emphasizing understanding subjective meanings rather than standardized measurement.
   • D. Constructionism — an ontological view that social phenomena are created through interaction, not fixed measurable entities.

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10. Question 10

    Active Audience Theories focus on assessing what ________.

    1. Apeople do with media
    2. Bmedia does with people
    3. Cadministration does with media
    4. Dregulations impact media

    Answer: (A) people do with media

    Explanation

    Active Audience Theories, pioneered through the Uses and Gratifications approach, examine what people do with media rather than what media does to people.

    • A. people do with media — correct. Audiences actively select, interpret, and integrate media into their daily lives.
    • B. media does with people — represents passive audience models such as the hypodermic needle theory.
    • C. administration does with media — relates to institutional gatekeeping or state propaganda studies.
    • D. regulations impact media — relates to media policy, law, and broadcast regulation.

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11. Question 11

    Arrange the following greenhouse gases in the increasing order of their life time in the earth's atmosphere:

    A. SF₆
    B. N₂O
    C. H₂O vapor
    D. CH₄

    Choose the correct answer from the options given below:

    1. AC, D, B, A
    2. BC, D, A, B
    3. CA, B, C, D
    4. DB, A, D, C

    Answer: (A) C, D, B, A

    Explanation

    Atmospheric lifetimes of greenhouse gases span from days to thousands of years:

    C, D, B, A

    • C. H₂O vapor: approximately 9 to 10 days
    • D. CH₄ (Methane): approximately 12 years
    • B. N₂O (Nitrous oxide): approximately 114 years
    • A. SF₆ (Sulfur hexafluoride): approximately 3200 years

    Arranged from shortest to longest atmospheric residence time yields C, D, B, A.

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12. Question 12

    The smallest unit of information, a computer can understand and process is known as:

    1. ADigit
    2. BByte
    3. CNibble
    4. DBit

    Answer: (D) Bit

    Explanation

    A bit (binary digit) is the most elementary unit of information in digital computing, representing either 0 or 1.

    • A. Digit — a general numerical symbol, not the fundamental binary data unit.
    • B. Byte — a group of 8 bits, representing a character.
    • C. Nibble — a half-byte consisting of 4 bits.
    • D. Bit — correct. The smallest addressable binary state processed by digital logic.

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13. Question 13

    Complete the following series: N7V, K9T, H12R, ? , B21N

    1. AE14R
    2. BE13Q
    3. CE16P
    4. DF16R

    Answer: (C) E16P

    Explanation

    Each term follows independent patterns across its three constituent elements:

    • First letter: N (14) - 3 = K (11), 11 - 3 = H (8), 8 - 3 = E (5), 5 - 3 = B (2)
    • Middle number: 7 + 2 = 9, 9 + 3 = 12, 12 + 4 = 16, 16 + 5 = 21
    • Third letter: V (22) - 2 = T (20), 20 - 2 = R (18), 18 - 2 = P (16), 16 - 2 = N (14)

    Combining the three derived positions gives E16P.

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14. Question 14

    As per the recommendations of National Education Policy, 2020, all stand alone teacher education institutions will be required to convert into multidisciplinary institutions by:

    1. A2025
    2. B2030
    3. C2035
    4. D2040

    Answer: (B) 2030

    Explanation

    National Education Policy 2020 Section 15.4 mandates that all stand-alone teacher education institutions (TEIs) must transition into multidisciplinary higher education institutions by 2030.

    • A. 2025 — milestone for universal foundational literacy and numeracy.
    • B. 2030 — correct. All stand-alone TEIs must become multidisciplinary institutions because the 4-year integrated B.Ed. will be offered only by multidisciplinary colleges.
    • C. 2035 — target year for achieving a 50% Gross Enrolment Ratio in higher education.
    • D. 2040 — broad horizon for all higher education institutions to become multidisciplinary.

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15. Question 15

    Given below are two statements:

    Assertion (A): The National Education Policy, 2020 (NEP 2020) envisioned "Research-intensive Universities".
    Reason (R): NEP 2020 envisioned the university as a place which lays equal emphasis on teaching and research.

    In the light of the above statements, choose the most appropriate answer from the options given below:

    1. ABoth (A) and (R) are correct and (R) is the correct explanation of (A)
    2. BBoth (A) and (R) are correct but (R) is not the correct explanation of (A)
    3. C(A) is correct but (R) is not correct
    4. D(A) is not correct but (R) is correct

    Answer: (A) Both (A) and (R) are correct and (R) is the correct explanation of (A)

    Explanation

    NEP 2020 Section 10 restructures higher education institutions into three institutional tiers, defining Research-intensive Universities as institutions placing equal emphasis on cutting-edge research and teaching.

    • Assertion (A): Correct. The policy explicitly identifies Research-intensive Universities as one of the primary institutional types.
    • Reason (R): Correct. The policy defines these universities as centers that balance teaching and research equally.

    Because placing equal emphasis on teaching and research defines why Research-intensive Universities were created, Reason (R) directly explains Assertion (A).

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16. Question 16

    Which of the following are application software?

    A. Spreadsheet
    B. Word Processor
    C. Operating system
    D. Database
    E. Compiler

    Choose the correct answer from the options given below:

    1. AA, C and D only
    2. BB, C and E only
    3. CA, D and E only
    4. DA, B and D only

    Answer: (D) A, B and D only

    Explanation

    Application software helps end users perform specific tasks, distinct from system software that manages hardware resources:

    • A. Spreadsheet — application software used for tabulating and calculating data
    • B. Word Processor — application software used for creating and formatting documents
    • C. Operating system — system software that manages hardware and execution environments
    • D. Database — application software packages used for managing structured user records
    • E. Compiler — system software that translates high-level code into machine instructions

    Thus, only A, B, and D are application software.

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17. Question 17

    Match List - I with List - II.

    Choose the correct answer from the options:

    List - I (Department of Ashram)	List - II (Subject)
    A. Vishnu Sthana	I. Military Education
    B. Vivasta Sthana	II. Jyotish
    C. Garun Sthana	III. Politics
    D. Mahendra Sthana	IV. Travel and Transport

    1. AA-II, B-IV, C-III, D-I
    2. BA-I, B-III, C-II, D-IV
    3. CA-III, B-II, C-IV, D-I
    4. DA-I, B-II, C-III, D-IV

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

    Explanation

    In ancient Indian ashrams and gurukuls, specific departments (sthanas) were dedicated to specialized fields of learning:

    A-III, B-II, C-IV, D-I

    • A. Vishnu Sthana: devoted to politics, governance, and statecraft (III)
    • B. Vivasta Sthana: devoted to astronomy and astrology (Jyotish) (II)
    • C. Garun Sthana: devoted to travel, navigation, and transport (IV)
    • D. Mahendra Sthana: devoted to warfare and military education (I)

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18. Question 18

    Journals that prioritize self-interest at the expense of scholarship and are characterized by false or misleading information, deviation from best editorial/publication practices, lack of transparency and and/or use of aggressive and indiscriminate solicitation practices, are known as:

    1. AOpen access journals
    2. BProprietary journals
    3. CProfessional journals
    4. DPredatory journals

    Answer: (D) Predatory journals

    Explanation

    Predatory journals charge publication fees without providing legitimate editorial peer-review, using deceptive and aggressive solicitation to exploit academic publishing pressure.

    • A. Open access journals — legitimate academic journals that make articles freely available, often under Creative Commons licensing.
    • B. Proprietary journals — subscription-based journals owned by commercial publishing houses.
    • C. Professional journals — periodicals published by professional bodies and learned societies.
    • D. Predatory journals — correct. They sacrifice scholarship for financial gain through fraudulent editorial claims.

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19. Question 19

    Which among the following is the most liberal Open Education Resource license?

    1. ACC-BY
    2. BCC-BY-SA
    3. CCC-BY-ND
    4. DCC-BY-NC

    Answer: (A) CC-BY

    Explanation

    The Creative Commons Attribution (CC-BY) license is the most liberal among the listed licenses, requiring only attribution while permitting reuse, adaptation, and commercial distribution.

    • A. CC-BY — correct. Most permissive, permitting any modification or commercial use with simple attribution.
    • B. CC-BY-SA — adds a ShareAlike clause requiring derived works to adopt the same license terms.
    • C. CC-BY-ND — adds a NoDerivatives restriction forbidding altered or adapted distributions.
    • D. CC-BY-NC — adds a NonCommercial clause prohibiting commercial exploitation.

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20. Question 20

    The oxygen consumed in the oxidation of an organic compound by microorganisms in the aquatic ecosystem is called ________.

    1. ADissolved oxygen
    2. BChemical oxygen demand
    3. CTheoretical oxygen demand
    4. DBiochemical oxygen demand

    Answer: (D) Biochemical oxygen demand

    Explanation

    Biochemical Oxygen Demand (BOD) measures the quantity of dissolved oxygen consumed by aerobic microorganisms while decomposing organic matter in water.

    • A. Dissolved oxygen — the actual volume of free oxygen dissolved and available in water.
    • B. Chemical oxygen demand — oxygen required to oxidize organic matter using strong chemical oxidants such as dichromate.
    • C. Theoretical oxygen demand — calculated stoichiometric oxygen requirement based on the chemical formula of the pollutant.
    • D. Biochemical oxygen demand — correct. Driven specifically by biological microbial oxidation.

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21. Question 21

    Which of the following are not true?

    A. In the argument from ignorance fallacy, something is accepted as true because it is not proven false.
    B. In Hasty generalisation fallacy, a general truth is applied to a particular case ignoring its uniqueness.
    C. In Begging the question fallacy, an event is wrongly accepted as the cause of some other event.
    D. The fallacy of Amphiboly occurs in arguing from premises whose formulations are ambiguous because of their grammatical construction.

    Choose the correct answer from the options given below:

    1. AA, B and C only
    2. BA, B and D only
    3. CB and C only
    4. DA and D only

    Answer: (C) B and C only

    Explanation

    Analyzing each informal logical fallacy:

    • A. (True) — Argumentum ad ignorantiam assumes a claim is true merely because it has not been disproved.
    • B. (Not true) — Applying a general rule to an atypical case is the Fallacy of Accident (dicto simpliciter), whereas Hasty Generalization draws a sweeping conclusion from insufficient examples.
    • C. (Not true) — Mistaking an event for a cause is the False Cause (post hoc) fallacy, whereas Begging the Question (petitio principii) assumes the conclusion within the premise.
    • D. (True) — Amphiboly arises from faulty grammatical structure creating multiple syntactic interpretations.

    Because statements B and C are false descriptions, they constitute the incorrect statements.

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22. Question 22

    The theory that argues that media can have a strong influence in deciding the small number of public problems or issues that people will think about at any given point in time, is:

    1. AAgenda-Setting Theory
    2. BKnowledge-Gap Theory
    3. CLimited Effects Theory
    4. DPersonal Influence Theory

    Answer: (A) Agenda-Setting Theory

    Explanation

    Agenda-Setting Theory, formulated by Maxwell McCombs and Donald Shaw, demonstrates that media salience dictates public issue salience by telling audiences what topics to think about.

    • A. Agenda-Setting Theory — correct. Media prominence filters and prioritizes the public agenda.
    • B. Knowledge-Gap Theory — predicts information distribution disproportionately benefits higher socioeconomic groups.
    • C. Limited Effects Theory — argues media effects are heavily moderated by social ties and existing beliefs.
    • D. Personal Influence Theory — highlights two-step information flow via interpersonal opinion leaders.

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23. Question 23

    Arrange the following pairs of standard deviation (σ) and total number of samples (n) pertaining to different sampling distributions in the decreasing order of their standard error.

    A. σ = 1.6, n = 16
    B. σ = 1.5, n = 25
    C. σ = 0.6, n = 36
    D. σ = 1.4, n = 49

    Choose the correct answer from the options given below:

    1. AA, B, C, D
    2. BA, B, D, C
    3. CD, C, B, A
    4. DC, B, D, A

    Answer: (B) A, B, D, C

    Explanation

    Standard error of the mean is calculated using the formula:

    Standard Error = σ / √n

    A, B, D, C

    • A: 1.6 / √16 = 1.6 / 4 = 0.40
    • B: 1.5 / √25 = 1.5 / 5 = 0.30
    • D: 1.4 / √49 = 1.4 / 7 = 0.20
    • C: 0.6 / √36 = 0.6 / 6 = 0.10

    Ordering in decreasing magnitude yields 0.40 > 0.30 > 0.20 > 0.10, which corresponds to A, B, D, C.

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24. Question 24

    Which of the following is an example of biological motive?

    1. AAchievement
    2. BHunger
    3. CPower
    4. DAffiliation

    Answer: (B) Hunger

    Explanation

    Biological motives are innate physiological drives necessary for individual or species survival.

    • A. Achievement — a learned social motive centered on attaining excellence and goals.
    • B. Hunger — correct. An unlearned homeostatic biological drive signaling energy and nutrient deficiency.
    • C. Power — a psychosocial need to influence, control, or direct others.
    • D. Affiliation — a social drive to seek interpersonal relationships and group membership.

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25. Question 25

    Identify the advantages of closed ended questions in survey research:

    A. It is easy to process answers.
    B. Respondents can answer in their own terms.
    C. They are easy for the respondents to complete.
    D. They allow unusual responses to be derived.

    Choose the correct answer from the options given below:

    1. AA and B only
    2. BA and C only
    3. CA, B and C only
    4. DB, C and D only

    Answer: (B) A and C only

    Explanation

    Closed-ended questions offer pre-formulated response categories in structured survey questionnaires:

    • A. (Advantage) — Responses are standardized, making coding and statistical processing straightforward.
    • B. (Disadvantage) — Respondents are restricted to pre-set choices rather than answering in their own words.
    • C. (Advantage) — Checking an option takes minimal time and cognitive effort from respondents.
    • D. (Disadvantage) — Novel or unanticipated answers cannot emerge from fixed choices.

    Therefore, only statements A and C represent advantages of closed-ended questions.

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26. Question 26

    Given below are two statements:

    Assertion (A): People, who hold views contrary to those dominant in the media, keep those views to themselves.
    Reason (R): Such people fear isolation or separation from those around them.

    In the light of the above statements, choose the most appropriate answer from the options given below:

    1. ABoth (A) and (R) are correct and (R) is the correct explanation of (A)
    2. BBoth (A) and (R) are correct but (R) is not the correct explanation of (A)
    3. C(A) is correct but (R) is not correct
    4. D(A) is not correct but (R) is correct

    Answer: (A) Both (A) and (R) are correct and (R) is the correct explanation of (A)

    Explanation

    Elisabeth Noelle-Neumann's Spiral of Silence theory explains how perceived public opinion exerts social pressure on individuals.

    • Assertion (A): Correct. People who perceive their opinions are not supported by the dominant media narrative tend to remain silent.
    • Reason (R): Correct. Individuals possess an innate fear of social isolation and ostracism from their community.

    Because the fear of social isolation is the psychological driver causing minority opinion holders to withhold their views, Reason (R) directly explains Assertion (A).

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27. Question 27

    Arrange the following fractions in ascending order:

    A. 2/3
    B. 7/19
    C. 9/11
    D. 8/9
    E. 7/9

    Choose the correct answer from the options given below:

    1. AB, A, E, C, D
    2. BB, E, A, D, C
    3. CA, B, C, D, E
    4. DB, C, A, E, D

    Answer: (A) B, A, E, C, D

    Explanation

    Converting each fraction to its decimal equivalent enables direct ascending comparison:

    B, A, E, C, D

    • B. 7/19: approximately 0.3684
    • A. 2/3: approximately 0.6667
    • E. 7/9: approximately 0.7778
    • C. 9/11: approximately 0.8182
    • D. 8/9: approximately 0.8889

    Arranging from smallest to largest value yields 0.3684 < 0.6667 < 0.7778 < 0.8182 < 0.8889, which corresponds to B, A, E, C, D.

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28. Question 28

    Arrange the following in the ascending order of adoption in terms of Diffusion of Innovation among the masses:

    A. Opinion Followers
    B. Opinion Leaders
    C. Early Adopters
    D. Change Agents
    E. Laggards

    Choose the correct answer from the options given below:

    1. AA, D, C, B, E
    2. BD, C, B, A, E
    3. CC, D, B, A, E
    4. DA, B, C, D, E

    Answer: (B) D, C, B, A, E

    Explanation

    In Everett Rogers' Diffusion of Innovations framework, the chronological progression through which new ideas spread across a social system follows this sequence:

    D, C, B, A, E

    • D. Change Agents: professionals who introduce the innovation into the client system
    • C. Early Adopters: visionary users who embrace the innovation early
    • B. Opinion Leaders: respected individuals who evaluate and endorse the innovation
    • A. Opinion Followers: the pragmatic majority who adopt after social validation
    • E. Laggards: traditionalists who are the last to adopt

    This chronological adoption order corresponds to D, C, B, A, E.

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29. Question 29

    Arrange the steps of creative thinking process in correct sequence:

    A. Preparation
    B. Evaluation
    C. Illumination
    D. Revision
    E. Incubation

    Choose the correct answer from the options given below:

    1. AA, B, C, D, E
    2. BE, D, C, B, A
    3. CD, C, B, E, A
    4. DA, E, C, B, D

    Answer: (D) A, E, C, B, D

    Explanation

    Graham Wallas's foundational model outlines the five stages of the creative process in sequential order:

    A, E, C, B, D

    • A. Preparation: gathering data, exploring dimensions, and defining the challenge
    • E. Incubation: setting the problem aside while the unconscious mind processes ideas
    • C. Illumination: the sudden breakthrough or flash of insight
    • B. Evaluation: critically testing and assessing the validity of the idea
    • D. Revision: refining, modifying, and polishing the final creative product

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30. Question 30

    The issue related to 'traditional knowledge societies and their livelihood' is addressed in the National Mission for ________.

    1. AEnhanced Energy Efficiency
    2. BSustaining the Himalayan Eco-system
    3. CSustainable Habitat
    4. DA Green India

    Answer: (B) Sustaining the Himalayan Eco-system

    Explanation

    Under the National Action Plan on Climate Change (NAPCC), the National Mission for Sustaining the Himalayan Eco-system (NMSHE) specifically focuses on indigenous communities and cultural ecology.

    • A. Enhanced Energy Efficiency — targets market-based mechanisms and energy conservation in heavy industry.
    • B. Sustaining the Himalayan Eco-system — correct. Mandated to safeguard Himalayan biodiversity, livelihoods, and traditional ecological knowledge systems.
    • C. Sustainable Habitat — targets urban planning, waste management, and building energy efficiency.
    • D. A Green India — targets forest cover restoration and ecosystem services.

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31. Question 31

    Match List - I with List - II.

    Choose the correct answer from the options:

    List - I (Type of Development)	List - II (Related with)
    A. Psycho-sexual Development	I. Identity vs. Role Confusion
    B. Psycho-social Development	II. Anal Stage
    C. Cognitive Development	III. Hypothetical-deductive reasoning
    D. Moral Development	IV. Resolving ethical dilemma

    1. AA-II, B-III, C-I, D-IV
    2. BA-III, B-I, C-IV, D-II
    3. CA-I, B-IV, C-II, D-III
    4. DA-II, B-I, C-III, D-IV

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

    Explanation

    Each psychological domain pairs with a benchmark developmental milestone or stage:

    A-II, B-I, C-III, D-IV

    • A. Psycho-sexual Development: Freud's psychosexual model contains the anal stage (II)
    • B. Psycho-social Development: Erikson's psychosocial model identifies identity vs. role confusion in adolescence (I)
    • C. Cognitive Development: Piaget's formal operational stage features hypothetical-deductive reasoning (III)
    • D. Moral Development: Kohlberg's theory focuses on reasoning through ethical dilemmas (IV)

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32. Question 32

    Which of the following explains the fallacy (hetvabhasa) of satpratipaksha correctly?

    1. AA fallacy where an inference is contradicted by perception or some other non-inferential pramana.
    2. BA fallacy where one inference is contradicted by another inference.
    3. CA fallacy that disproves the very proposition which it is meant to prove.
    4. DA fallacy of the irregular middle

    Answer: (B) A fallacy where one inference is contradicted by another inference.

    Explanation

    In Nyaya epistemology, satpratipaksha occurs when a middle term is counterbalanced by an equally valid opposing middle term leading to a contradictory conclusion.

    • A. describes badhita, where the inference is contradicted by perception or a stronger pramāṇa.
    • B. correct. Satpratipaksha involves two counterpoised inferences of equal strength canceling each other out.
    • C. describes viruddha, where the reason disproves the very thesis it seeks to prove.
    • D. describes savyabhicara, the fallacy of an inconstant or irregular middle term.

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33. Question 33

    Which term is NOT related to computer hardware?

    1. ABus
    2. BSwitch
    3. CWindows
    4. DMouse

    Answer: (C) Windows

    Explanation

    Windows is a proprietary graphical operating system, which is system software rather than physical hardware.

    • A. Bus — physical circuitry and data pathways connecting motherboard components.
    • B. Switch — physical network hardware device that filters and forwards data packets.
    • C. Windows — correct. An operating system program, representing software.
    • D. Mouse — physical peripheral input pointing device.

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34. Question 34

    Given below are two statements:

    Assertion (A): A wind mill will be more effective if it is placed at a higher elevation above the ground than a lower one.
    Reason (R): Generally, the wind speed increases with altitude above the earth's surface.

    In the light of the above statements, choose the most appropriate answer from the options given below:

    1. ABoth (A) and (R) are correct and (R) is the correct explanation of (A)
    2. BBoth (A) and (R) are correct but (R) is not the correct explanation of (A)
    3. C(A) is correct but (R) is not correct
    4. D(A) is not correct but (R) is correct

    Answer: (A) Both (A) and (R) are correct and (R) is the correct explanation of (A)

    Explanation

    Power output in wind turbines varies with the cube of the wind speed, making turbine elevation critical to energy generation.

    • Assertion (A): Correct. Elevated wind turbines capture stronger and less turbulent air streams, significantly improving power output.
    • Reason (R): Correct. Wind speed increases with height due to reduced friction from surface terrain and obstacles.

    Because higher wind velocity at greater altitude directly drives the increased performance of taller turbines, Reason (R) is the correct explanation of Assertion (A).

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35. Question 35

    Match List - I with List - II.

    Choose the correct answer from the options:

    List - I	List - II
    A. Phishing	I. Act of gaining unauthorized access
    B. Hacking	II. Unsolicited email sent over the internet to a recipient on a mailing list
    C. Spam	III. Small file or code stored on user's computer
    D. Cookies	IV. The creator sends out legitimate-looking emails to target users

    1. AA-II, B-III, C-IV, D-I
    2. BA-IV, B-I, C-III, D-II
    3. CA-IV, B-I, C-II, D-III
    4. DA-I, B-IV, C-II, D-III

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

    Explanation

    Matching each computing and internet security concept to its operational definition:

    A-IV, B-I, C-II, D-III

    • A. Phishing: sending deceptive, authentic-looking emails to trick users into divulging private credentials (IV)
    • B. Hacking: unauthorized digital intrusion into computer systems or networks (I)
    • C. Spam: unsolicited bulk electronic mail transmitted across mailing lists (II)
    • D. Cookies: small data files stored locally on a client machine by websites to preserve session state (III)

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36. Question 36

    Identify the correct mathematical statements:

    A. The value of 1/4 + 1/(4 * 5) + 1/(4 * 5 * 6) is equal to 37/120.
    B. 1 + 2 / {1 + 2 / (1 + 1/3)} is equal to 4/5.
    C. If the average of 6 numbers is 7, the average of 3 numbers of them is 5, then the average of remaining numbers is 9.
    D. If 75% of a number is added to 75, then the result is number itself. Then the number is 300.
    E. Largest fraction from 9/31, 6/23, 3/17, 4/11 is 9/31.

    Choose the correct answer from the options given below:

    1. AA and B only
    2. BA, C and D only
    3. CC and D only
    4. DC, E and D only

    Answer: (B) A, C and D only

    Explanation

    Evaluating each mathematical statement individually:

    • A. (Correct): 1/4 + 1/20 + 1/120 = (30 + 6 + 1) / 120 = 37/120
    • B. (Incorrect): 1 + 1/3 = 4/3, 2 / (4/3) = 3/2, 1 + 3/2 = 5/2, 2 / (5/2) = 4/5, and 1 + 4/5 = 9/5 (not 4/5)
    • C. (Correct): Total sum is 6 * 7 = 42. Sum of first three is 3 * 5 = 15. Remaining sum is 42 - 15 = 27. Remaining average is 27 / 3 = 9
    • D. (Correct): 0.75x + 75 = x implies 75 = 0.25x, so x = 75 / 0.25 = 300
    • E. (Incorrect): Comparing fractions reveals 4/11 = 0.3636 is larger than 9/31 = 0.2903

    Thus, statements A, C, and D are correct.

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37. Question 37

    Given below are two statements:

    Assertion (A): The terms validity and invalidity do not apply to inductive arguments.
    Reason (R): In an inductive argument, the conclusion does not have sufficient ground in the premises.

    In the light of the above statements, choose the most appropriate answer from the options given below:

    1. ABoth (A) and (R) are correct and (R) is the correct explanation of (A)
    2. BBoth (A) and (R) are correct but (R) is not the correct explanation of (A)
    3. C(A) is correct but (R) is not correct
    4. D(A) is not correct but (R) is correct

    Answer: (A) Both (A) and (R) are correct and (R) is the correct explanation of (A)

    Explanation

    In formal logic, validity is exclusively a property of deductive arguments where true premises guarantee a true conclusion.

    • Assertion (A): Correct. Inductive arguments are evaluated as strong or weak and cogent or uncogent, never valid or invalid.
    • Reason (R): Correct. Inductive premises provide probable support rather than sufficient deductive certainty to guarantee the conclusion.

    Because premises in an inductive argument claim probability rather than deductive necessity, the standard of validity cannot apply, making Reason (R) the correct explanation of Assertion (A).

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38. Question 38

    Match List - I with List - II.

    Choose the correct answer from the options:

    List - I (Types Categorical propositions)	List - II (Explanation)
    A. A proposition	I. Distributes both subject and predicate terms
    B. E proposition	II. Distributes only predicate term
    C. I proposition	III. Distributes only subject term
    D. O proposition	IV. Distributes neither subject nor predicate term

    1. AA-II, B-I, C-IV, D-III
    2. BA-III, B-I, C-IV, D-II
    3. CA-I, B-II, C-III, D-IV
    4. DA-IV, B-III, C-II, D-I

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

    Explanation

    Term distribution in standard categorical propositions follows the ASEBINOP mnemonic rules:

    A-III, B-I, C-IV, D-II

    • A. A proposition (Universal Affirmative): distributes only the subject term (III)
    • B. E proposition (Universal Negative): distributes both subject and predicate terms (I)
    • C. I proposition (Particular Affirmative): distributes neither subject nor predicate term (IV)
    • D. O proposition (Particular Negative): distributes only the predicate term (II)

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39. Question 39

    Two cyclists cover the same distance at 15 km/hr and 16 km/hr, respectively. If one cyclist takes 16 minutes longer than the other, then the distance travelled by each cyclist is:

    1. A64 km
    2. B16 km
    3. C68 km
    4. D12 km

    Answer: (A) 64 km

    Explanation

    Let the common distance covered by both cyclists be d kilometers.

    Time difference = d / 15 - d / 16 = 16 / 60 hours

    Simplifying the equation:
    (16d - 15d) / (15 * 16) = 4 / 15
    d / 240 = 4 / 15
    d = 240 * (4 / 15) = 16 * 4 = 64 km

    Both cyclists traveled a distance of 64 km.

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40. Question 40

    Match List - I with List - II.

    Choose the correct answer from the options:

    List - I	List - II
    A. Independent variable in true experimental design	I. Outcome variable
    B. Dependent variable	II. Control variable
    C. Intervening variable	III. Spurious variable
    D. Confounding variable	IV. Stands between independent variable and dependent variable

    1. AA-IV, B-III, C-II, D-I
    2. BA-II, B-I, C-IV, D-III
    3. CA-I, B-II, C-III, D-IV
    4. DA-II, B-III, C-IV, D-I

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

    Explanation

    Each variable role in experimental research design is defined by its function:

    A-II, B-I, C-IV, D-III

    • A. Independent variable: the factor actively manipulated or controlled by the experimenter (II)
    • B. Dependent variable: the observed outcome variable measured for change (I)
    • C. Intervening variable: a mediating variable standing between the independent and dependent variables (IV)
    • D. Confounding variable: an extraneous factor that threatens internal validity by producing spurious effects (III)

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41. Question 41

    Arrange the following senior functionaries of a central university in the correct hierarchal order:

    A. Visitor
    B. Dean of the faculty
    C. Chancellor
    D. Head of Department
    E. Vice-Chancellor

    Choose the correct answer from the options given below:

    1. AA, C, E, D, B
    2. BC, A, E, D, B
    3. CA, C, E, B, D
    4. DB, D, E, C, A

    Answer: (C) A, C, E, B, D

    Explanation

    Statutory central university governance in India follows a defined administrative hierarchy from supreme authority downward:

    A, C, E, B, D

    • A. Visitor: The President of India, holding supreme statutory authority
    • C. Chancellor: titular head of the university
    • E. Vice-Chancellor: chief executive and principal academic officer
    • B. Dean of the faculty: administrative head of a faculty or school
    • D. Head of Department: academic supervisor of an individual department

    This descending administrative hierarchy corresponds to A, C, E, B, D.

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42. Question 42

    Match List - I with List - II.

    Choose the correct answer from the options:

    List - I	List - II
    A. Primary Air pollutant	I. Peroxyacyl nitrate
    B. Secondary Air pollutant	II. Carbon monoxide
    C. Ozone depleting substance	III. Aerosols
    D. Cloud Condensation Nuclei	IV. Chlorofluorocarbons

    1. AA-I, B-II, C-III, D-IV
    2. BA-II, B-I, C-IV, D-III
    3. CA-I, B-II, C-IV, D-III
    4. DA-II, B-I, C-III, D-IV

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

    Explanation

    Atmospheric constituents and pollutant classes pair with their representative chemical agents:

    A-II, B-I, C-IV, D-III

    • A. Primary Air pollutant: Carbon monoxide (CO), released directly from combustion sources (II)
    • B. Secondary Air pollutant: Peroxyacyl nitrate (PAN), produced via photochemical atmospheric reactions (I)
    • C. Ozone depleting substance: Chlorofluorocarbons (CFCs), which release catalytic ozone-destroying chlorine (IV)
    • D. Cloud Condensation Nuclei: Aerosols, fine suspended particles that seed cloud water droplets (III)

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43. Question 43

    Which of the following represents the ontological orientation of qualitative research strategies?

    1. ADeductive
    2. BPositivism
    3. CObjectivism
    4. DConstructionism

    Answer: (D) Constructionism

    Explanation

    Ontology addresses the nature of social reality. Qualitative inquiry assumes reality is socially constructed through human interaction rather than existing as an objective external entity.

    • A. Deductive — an approach to the relationship between theory and data characteristic of quantitative research.
    • B. Positivism — an epistemological stance applying natural science methods to social phenomena.
    • C. Objectivism — an ontological stance asserting social reality exists independently of social actors.
    • D. Constructionism — correct. The ontological framework asserting social phenomena are continuously generated and revised by social actors.

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44. Question 44

    Given below are two statements:

    Assertion (A): The projective techniques offer an approach to the measurement of the personality, which is different from the self-descriptive inventories.
    Reason (R): Self-descriptive inventories require the subject to describe himself/herself while assessing personality.

    In the light of the above statements, choose the most appropriate answer from the options given below:

    1. ABoth (A) and (R) are correct and (R) is the correct explanation of (A)
    2. BBoth (A) and (R) are correct but (R) is not the correct explanation of (A)
    3. C(A) is correct but (R) is not correct
    4. D(A) is not correct but (R) is correct

    Answer: (B) Both (A) and (R) are correct but (R) is not the correct explanation of (A)

    Explanation

    Both statements are correct, but Reason (R) does not explain why projective techniques measure personality differently from self-descriptive inventories.

    • Assertion (A): Correct. Projective techniques assess personality through open-ended responses to ambiguous stimuli, tapping unconscious motives rather than direct self-reports.
    • Reason (R): Correct. Self-descriptive inventories require the respondent to rate or describe their own behavioral traits and tendencies.

    While Reason (R) correctly describes how self-inventories operate, it provides no information about projective techniques or their unique psychological mechanism. Therefore, Reason (R) is not the correct explanation of Assertion (A).

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45. Question 45

    Match List - I with List - II.

    Choose the correct answer from the options:

    List - I	List - II
    A. Rhetorical	I. Considering communication to be discursive reflection on hegemonic ideological forces
    B. Semiotic	II. Considering communication to be the capacity of experiencing otherness through authentic dialogue
    C. Phenomenological	III. Considering communication to be Practical Art
    D. Critical	IV. Considering communication to be Intersubjective Mediation via Signs

    1. AA-III, B-IV, C-II, D-I
    2. BA-II, B-IV, C-III, D-I
    3. CA-I, B-IV, C-II, D-III
    4. DA-III, B-II, C-IV, D-I

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

    Explanation

    In Robert Craig's framework of communication theory traditions, each school conceptualizes communication distinctly:

    A-III, B-IV, C-II, D-I

    • A. Rhetorical: communication conceptualized as the practical art of discourse (III)
    • B. Semiotic: communication conceptualized as intersubjective mediation through signs and symbols (IV)
    • C. Phenomenological: communication conceptualized as experiencing otherness through authentic dialogue (II)
    • D. Critical: communication conceptualized as discursive reflection on power and hegemonic ideologies (I)

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46. Question 46

    According to the passage, persons responsible for the control, organisation and planning have been directing organised endeavors:

    Organized endeavors directed by people responsible for planning, organizing, leading and controlling activities have existed for thousands of years. The Egyptian pyramids and the Great Wall of China, for instance, are tangible evidence that projects of tremendous scope, employing tens of thousands of people, were undertaken well before modern times. The pyramids are a particularly interesting example. The construction of a single pyramid occupied more than 100,000 workers for 20 years. Who told each worker what to do? Who ensured that there would be enough stones at the site to keep workers busy? The answer to such questions is managers. Regardless of what managers were called at the time, someone had to plan what was to be done, organize people and materials to do it, lead and direct the workers, and impose some controls to ensure that everything was done as planned.

    Another example of early management can be seen during the 1400s in the city of Venice, Italy, a major economic and trade center. The Venetians developed an early form of business enterprise and engaged in many activities common to today's organizations. For instance, at the arsenal of Venice, warships were floated along the canals, and at each stop materials and riggings were added to the ship. Doesn't that sound a lot like a car "floating" along an automobile assembly line while components are added to it? In addition to this assembly line, the Venetians also used warehouse and inventory systems to keep track of materials, human resource management systems to manage the labor force, and an accounting system to keep track of revenues and costs.

    1. ASince 1400's
    2. BFor 100,000 years
    3. CFor Twenty years
    4. DFor Thousands of years

    Answer: (D) For Thousands of years

    Explanation

    The opening sentence of the passage states directly that organized endeavors directed by people responsible for planning, organizing, leading, and controlling activities have existed for thousands of years.

    • A. Since 1400's — refers specifically to early Venetian management innovations.
    • B. For 100,000 years — misinterprets the workforce size (100,000 workers) as a duration.
    • C. For Twenty years — the construction span of a single pyramid.
    • D. For Thousands of years — correct. Exactly matches the timeline in the text.

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47. Question 47

    The reader learns from the passage that:

    Organized endeavors directed by people responsible for planning, organizing, leading and controlling activities have existed for thousands of years. The Egyptian pyramids and the Great Wall of China, for instance, are tangible evidence that projects of tremendous scope, employing tens of thousands of people, were undertaken well before modern times. The pyramids are a particularly interesting example. The construction of a single pyramid occupied more than 100,000 workers for 20 years. Who told each worker what to do? Who ensured that there would be enough stones at the site to keep workers busy? The answer to such questions is managers. Regardless of what managers were called at the time, someone had to plan what was to be done, organize people and materials to do it, lead and direct the workers, and impose some controls to ensure that everything was done as planned.

    Another example of early management can be seen during the 1400s in the city of Venice, Italy, a major economic and trade center. The Venetians developed an early form of business enterprise and engaged in many activities common to today's organizations. For instance, at the arsenal of Venice, warships were floated along the canals, and at each stop materials and riggings were added to the ship. Doesn't that sound a lot like a car "floating" along an automobile assembly line while components are added to it? In addition to this assembly line, the Venetians also used warehouse and inventory systems to keep track of materials, human resource management systems to manage the labor force, and an accounting system to keep track of revenues and costs.

    1. AManagement is a recent creation.
    2. BThe title of manager is an ancient one.
    3. CPeople directing organised endeavors can be seen down the ages.
    4. DThe assembly line system was prevalent in China, Egypt and Italy.

    Answer: (C) People directing organised endeavors can be seen down the ages.

    Explanation

    The passage illustrates that while the formal title of manager is modern, the managerial functions of directing organized human projects have existed across ancient civilizations.

    • A. contradicts the text, which proves managerial endeavors existed well before modern times.
    • B. is explicitly refuted by the passage note: regardless of what managers were called at the time.
    • C. correct. Directly captures the main theme that organized endeavors directed by planners and leaders exist throughout history.
    • D. overgeneralizes the assembly line, which the passage mentions specifically in Venice.

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48. Question 48

    According to the passage, where was the ancient equivalent of the assembly line used?

    Organized endeavors directed by people responsible for planning, organizing, leading and controlling activities have existed for thousands of years. The Egyptian pyramids and the Great Wall of China, for instance, are tangible evidence that projects of tremendous scope, employing tens of thousands of people, were undertaken well before modern times. The pyramids are a particularly interesting example. The construction of a single pyramid occupied more than 100,000 workers for 20 years. Who told each worker what to do? Who ensured that there would be enough stones at the site to keep workers busy? The answer to such questions is managers. Regardless of what managers were called at the time, someone had to plan what was to be done, organize people and materials to do it, lead and direct the workers, and impose some controls to ensure that everything was done as planned.

    Another example of early management can be seen during the 1400s in the city of Venice, Italy, a major economic and trade center. The Venetians developed an early form of business enterprise and engaged in many activities common to today's organizations. For instance, at the arsenal of Venice, warships were floated along the canals, and at each stop materials and riggings were added to the ship. Doesn't that sound a lot like a car "floating" along an automobile assembly line while components are added to it? In addition to this assembly line, the Venetians also used warehouse and inventory systems to keep track of materials, human resource management systems to manage the labor force, and an accounting system to keep track of revenues and costs.

    1. AEgypt
    2. BChina
    3. CVenice
    4. DGiza

    Answer: (C) Venice

    Explanation

    The passage describes the arsenal of Venice where warships were floated along canals and components added at each stop, functioning as an early precursor to the modern assembly line.

    • A. Egypt — cited for the massive labor organization required to construct the pyramids.
    • B. China — cited for the extensive workforce management of the Great Wall.
    • C. Venice — correct. Specifically described as operating an assembly line system with warships in canals.
    • D. Giza — location of the Egyptian pyramids.

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49. Question 49

    The passage describes that the people of Egypt who built the pyramids had:

    Organized endeavors directed by people responsible for planning, organizing, leading and controlling activities have existed for thousands of years. The Egyptian pyramids and the Great Wall of China, for instance, are tangible evidence that projects of tremendous scope, employing tens of thousands of people, were undertaken well before modern times. The pyramids are a particularly interesting example. The construction of a single pyramid occupied more than 100,000 workers for 20 years. Who told each worker what to do? Who ensured that there would be enough stones at the site to keep workers busy? The answer to such questions is managers. Regardless of what managers were called at the time, someone had to plan what was to be done, organize people and materials to do it, lead and direct the workers, and impose some controls to ensure that everything was done as planned.

    Another example of early management can be seen during the 1400s in the city of Venice, Italy, a major economic and trade center. The Venetians developed an early form of business enterprise and engaged in many activities common to today's organizations. For instance, at the arsenal of Venice, warships were floated along the canals, and at each stop materials and riggings were added to the ship. Doesn't that sound a lot like a car "floating" along an automobile assembly line while components are added to it? In addition to this assembly line, the Venetians also used warehouse and inventory systems to keep track of materials, human resource management systems to manage the labor force, and an accounting system to keep track of revenues and costs.

    1. AA tabulation system to keep a record of the stones.
    2. BA plan of what was to be done.
    3. CAn accounting system to keep a record of money.
    4. DA storage system for material management.

    Answer: (B) A plan of what was to be done.

    Explanation

    Regarding the Egyptian pyramids, the text explicitly emphasizes that someone had to plan what was to be done, organize people and materials, and lead the workers.

    • A. is not mentioned in the passage.
    • B. correct. The text explicitly notes that someone had to plan what was to be done.
    • C. accounting systems are attributed in the passage to the Venetians, not the Egyptians.
    • D. warehouse and inventory systems are attributed to Venice.

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50. Question 50

    According to the passage, which of the following is not included in the role of a manager?

    Organized endeavors directed by people responsible for planning, organizing, leading and controlling activities have existed for thousands of years. The Egyptian pyramids and the Great Wall of China, for instance, are tangible evidence that projects of tremendous scope, employing tens of thousands of people, were undertaken well before modern times. The pyramids are a particularly interesting example. The construction of a single pyramid occupied more than 100,000 workers for 20 years. Who told each worker what to do? Who ensured that there would be enough stones at the site to keep workers busy? The answer to such questions is managers. Regardless of what managers were called at the time, someone had to plan what was to be done, organize people and materials to do it, lead and direct the workers, and impose some controls to ensure that everything was done as planned.

    Another example of early management can be seen during the 1400s in the city of Venice, Italy, a major economic and trade center. The Venetians developed an early form of business enterprise and engaged in many activities common to today's organizations. For instance, at the arsenal of Venice, warships were floated along the canals, and at each stop materials and riggings were added to the ship. Doesn't that sound a lot like a car "floating" along an automobile assembly line while components are added to it? In addition to this assembly line, the Venetians also used warehouse and inventory systems to keep track of materials, human resource management systems to manage the labor force, and an accounting system to keep track of revenues and costs.

    1. APiling up the stones of the pyramids
    2. BPlanning what is to be done
    3. COrganising people for the pyramid construction site
    4. DGuiding the pyramid labour force

    Answer: (A) Piling up the stones of the pyramids

    Explanation

    The passage outlines managerial responsibilities as planning what was to be done, organizing people and materials, leading and directing workers, and imposing controls.

    • A. Piling up the stones of the pyramids — correct. This was the manual labor performed by the 100,000 workers, not the managerial role.
    • B. Planning what is to be done — explicitly stated as a core managerial function.
    • C. Organising people for the pyramid construction site — explicitly identified as management work.
    • D. Guiding the pyramid labour force — matches the managerial responsibility to lead and direct the workers.

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100 questions with the answer key and explanations.

1. Question 1

   Which of the following statements are correct for tax Evasion ?
   A. All methods by which tax liability is illegally avoided is termed as tax evasion
   B. Tax evasion takes into account loopholes of Law
   C. Tax evasion is tax godging within framework of Law
   D. Tax evasion has legal sanction
   E. Tax evasion is intentional attempt to avoid payment of tax after the liability to tax has arisen
   Choose the correct answer from the options given below :

   1. AB and D Only
   2. BB, C and D Only
   3. CA, E and C Only
   4. DA and E Only

   Answer: (D) A and E Only

   Explanation

   Tax evasion refers to deliberate, illegal actions taken to avoid paying tax that is lawfully due.

   • Statement A — correct. Illegally avoiding tax liability through concealment or fraud constitutes tax evasion.
   • Statement B — incorrect. Exploiting legal loopholes while complying with the letter of the law is tax avoidance, not tax evasion.
   • Statement C — incorrect. Operating within the framework of law is tax planning or avoidance, whereas evasion violates the law.
   • Statement D — incorrect. Tax evasion is illegal and carries civil and criminal penalties under tax statutes.
   • Statement E — correct. An intentional failure or attempt to avoid paying tax after the liability has arisen is classic evasion.

   Therefore, only statements A and E are correct.

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2. Question 2

   Select the correct option from the followings.
   The Balance of payment (BoP) :

   1. AIncludes only exports and imports of goods and services.
   2. BIs always balanced because every credit entry has a corresponding debit entry.
   3. CExcludes unilateral transfers like remittance.
   4. DShows only the financial account of transactions.

   Answer: (B) Is always balanced because every credit entry has a corresponding debit entry.

   Explanation

   The Balance of Payments is constructed using double-entry bookkeeping, which ensures total debits always equal total credits.

   • A. Includes only exports and imports of goods and services — incorrect. BoP also includes primary income, secondary transfers, and the capital and financial accounts.
   • B. Is always balanced because every credit entry has a corresponding debit entry — correct. In an accounting sense, total debits match total credits by definition.
   • C. Excludes unilateral transfers like remittance — incorrect. Unilateral transfers form part of the secondary income account in the current account.
   • D. Shows only the financial account of transactions — incorrect. BoP covers current, capital, and financial accounts.

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3. Question 3

   What are the GST rates applicable after 22nd September 2025 ?
   A. 5%
   B. 12%
   C. 18%
   D. 28%
   E. 40%
   Choose the correct answer from the options given below :

   1. AA, B, C and D Only
   2. BB, C, D and E Only
   3. CA, C and E Only
   4. DB, C and E Only

   Answer: (A) A, B, C and D Only

   Explanation

   India operates a four-tier standard GST rate structure consisting of 5%, 12%, 18%, and 28%.

   • A (5%), B (12%), C (18%), D (28%) — these constitute the four primary standard GST slabs.
   • E (40%) — 40% is the statutory ceiling rate under the CGST Act rather than an applicable operational GST slab.

   Hence, the applicable GST rate slabs are A, B, C, and D.

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4. Question 4

   Arrange the followings on the basis of Sections of Indian Contract Act, 1872 in ascending order :
   A. Agreement in restraint of Marriage
   B. Agreement made without consideration
   C. Agreement with unlawful objects or consideration
   D. Agreement in restraint of Trade
   E. Agreement by way of wager
   Choose the correct answer from the options given below :

   1. AC, B, A, D, E
   2. BC, A, D, B, E
   3. CA, B, C, E, D
   4. DD, B, A, C, E

   Answer: (A) C, B, A, D, E

   Explanation

   The relevant provisions of the Indian Contract Act, 1872 follow this statutory sequence:

   C (Section 23) -> B (Section 25) -> A (Section 26) -> D (Section 27) -> E (Section 30)

   • C. Section 23 — lawful objects and considerations.
   • B. Section 25 — agreement without consideration is void.
   • A. Section 26 — agreement in restraint of marriage is void.
   • D. Section 27 — agreement in restraint of trade is void.
   • E. Section 30 — agreements by way of wager are void.

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5. Question 5

   Which of the followings are the properties of Indifference Curve ?
   A. Indifference curve slopes downward to right
   B. Indifference curve is concave to origin
   C. Indifference curve is convex to origin
   D. Indifference curves cannot intersect each other but can be tangent to each other
   E. Higher indifference curve represents higher level of satisfaction
   Choose the correct answer from the options given below :

   1. AA, B, D and E Only
   2. BA, C, D and E Only
   3. CA, C and E Only
   4. DA, B, C and D Only

   Answer: (C) A, C and E Only

   Explanation

   Indifference curves exhibit several standard properties derived from consumer preference axioms:

   • A. Slopes downward to right — correct. To maintain the same utility level, an increase in one good requires reducing the other.
   • B. Concave to origin — incorrect. Indifference curves are convex due to the diminishing marginal rate of substitution.
   • C. Convex to origin — correct. The marginal rate of substitution of X for Y diminishes along the curve.
   • D. Cannot intersect but can be tangent — incorrect. Two indifference curves can neither intersect nor touch each other because every curve represents a distinct utility level.
   • E. Higher indifference curve represents higher satisfaction — correct. By monotonicity of preferences, larger bundles yield greater satisfaction.

   Thus, statements A, C, and E are the valid properties.

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6. Question 6

   For assessment year 2025-26, ‘Health and Education Cess’ shall be levied at the rate of :

   1. A1% on Income Tax
   2. B2% on Income Tax
   3. C3% on Income Tax
   4. D4% on Income Tax

   Answer: (D) 4% on Income Tax

   Explanation

   Health and Education Cess is levied on total income tax plus applicable surcharge at the rate of 4%.

   • The 4% rate was introduced by Finance Act 2018, replacing the earlier 2% Primary Education Cess and 1% Secondary and Higher Education Cess.
   • The rate remains unchanged at 4% for Assessment Year 2025-26 across all categories of assessees.

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7. Question 7

   Where a company incurs any expenditure (not being expenditure in the nature of cost of any land or building) on any notified skill development project, then such company can claim as deduction under section 35CCD :

   1. AOnly 25% of such expenditure
   2. BOnly 50% of such expenditure
   3. COnly 75% of such expenditure
   4. D100% of such expenditure

   Answer: (D) 100% of such expenditure

   Explanation

   Section 35CCD of the Income Tax Act allows a deduction for expenditure incurred by a company on an approved skill development project.

   • While the section historically allowed a weighted deduction of 150%, the deduction rate was phased down to 100% of the actual expenditure with effect from Assessment Year 2021-22.
   • Expenditure in the nature of cost of land or building remains expressly ineligible for this deduction.

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8. Question 8

   Which one of the followings are not the Objectives of HRM ?

   1. ASocietal Objectives
   2. BOrganizational Objectives
   3. CFunctional Objectives
   4. DGroup Objectives

   Answer: (D) Group Objectives

   Explanation

   Human Resource Management recognizes four primary levels of objectives according to standard management theory.

   • Societal Objectives — fulfilling social and ethical responsibilities toward community needs.
   • Organizational Objectives — assisting the enterprise in attaining overall corporate goals.
   • Functional Objectives — maintaining the department contribution at a level suitable for organizational needs.
   • Personal Objectives — assisting employees in achieving personal career goals.

   Group objectives does not form one of the standard four functional tiers of HRM goals.

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9. Question 9

   Charge collected from the investors by a Mutual Fund Scheme when it sells its units to investors is called :

   1. AExit Load
   2. BEntry Load
   3. CSwitch
   4. DSale Price

   Answer: (B) Entry Load

   Explanation

   The fee levied at the time an investor purchases units from an asset management company is known as an entry load.

   • A. Exit Load — fee charged upon redemption or sale of mutual fund units back to the fund.
   • B. Entry Load — charge levied on purchase of new units from the fund scheme.
   • C. Switch — moving invested capital from one scheme to another within the same fund house.
   • D. Sale Price — total price per unit including NAV and any applicable load charges.

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10. Question 10

    Assertion (A): The minimum level of service the customer expects represents the threshold level of expectations.
    Reason (R): The gap between the desired and adequate service has been called as the zone of intolerance.
    In the light of the above statements, choose the most appropriate answer from the options given below :

    1. ABoth (A) and (R) are correct and (R) is the correct explanation of (A)
    2. BBoth (A) and (R) are correct but (R) is not the correct explanation of (A)
    3. C(A) is correct but (R) is not correct
    4. D(A) is not correct but (R) is correct

    Answer: (C) (A) is correct but (R) is not correct

    Explanation

    In the Parasuraman, Zeithaml, and Berry service quality model, customer expectations are separated into adequate and desired levels.

    • Assertion (A) is correct. Adequate service is the minimum threshold level below which customers feel dissatisfied.
    • Reason (R) is incorrect. The gap between desired service and adequate service is termed the zone of tolerance, not the zone of intolerance.

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11. Question 11

    Which of the followings are the techniques of Monetary Control adopted by RBI ?
    A. Loans and Advances to the Industries
    B. Cash Reserve Ratio
    C. Open Market Operations
    D. Statutory Liquidity Ratio
    E. Repo Rates
    Choose the correct answer from the options given below :

    1. AA, B, C, D Only
    2. BA, B, D, E Only
    3. CB, C, D, E Only
    4. DA, C, D, E Only

    Answer: (C) B, C, D, E Only

    Explanation

    The Reserve Bank of India controls credit and money supply through statutory quantitative and qualitative tools.

    • B. Cash Reserve Ratio (CRR) — statutory share of net demand and time liabilities banks maintain with the RBI.
    • C. Open Market Operations (OMO) — outright purchase and sale of government securities in the open market.
    • D. Statutory Liquidity Ratio (SLR) — minimum percentage of deposits banks maintain in liquid assets.
    • E. Repo Rates — policy rate at which RBI lends short-term liquidity against eligible collateral.

    Granting direct loans and advances to industries is an activity of commercial banks and specialized financial institutions rather than a central bank monetary control instrument.

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12. Question 12

    Arrange the following steps of Personal Selling in sequence :
    A. Pre approach
    B. Presentation and Demonstration
    C. Approach
    D. Prospecting and Qualifying
    E. Handling Objections
    Choose the correct answer from the options given below :

    1. AA, D, C, E, B
    2. BA, C, D, E, B
    3. CC, A, D, B, E
    4. DD, A, C, B, E

    Answer: (D) D, A, C, B, E

    Explanation

    The classical personal selling process follows seven structured sequential stages:

    D -> A -> C -> B -> E

    • D. Prospecting and Qualifying — identifying potential leads and evaluating their purchase ability.
    • A. Pre-approach — learning everything possible about the prospective customer before the contact.
    • C. Approach — initiating direct contact and building initial rapport.
    • B. Presentation and Demonstration — showcasing product features, benefits, and value proposition.
    • E. Handling Objections — clarifying doubts, overcoming hesitations, and answering concerns.

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13. Question 13

    Which one of the followings is not a category under Balance of Payments ?

    1. ACurrent Account
    2. BCapital Account
    3. CDrawings Account
    4. DOfficial Reserve Account

    Answer: (C) Drawings Account

    Explanation

    Balance of Payments accounting partitions international economic transactions into specific standard components.

    • A. Current Account — records trade in goods, services, primary investment income, and secondary transfers.
    • B. Capital Account — records capital transfers and non-produced non-financial asset acquisitions.
    • C. Drawings Account — proprietary financial accounting term for partner or owner withdrawals, having no role in macroeconomic BoP frameworks.
    • D. Official Reserve Account — records transactions in gold, foreign currency assets, and SDR balances held by the central bank.

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14. Question 14

    Arrange the following steps of Capital Budgeting Process in correct order :
    A. Preliminary Screening Process
    B. Project Generation
    C. Detailed Project Evaluation
    D. Control of Capital Expenditure
    E. Project Selection and its implementation
    Choose the correct answer from the options given below :

    1. AA, B, C, D, E
    2. BB, A, C, E, D
    3. CA, B, C, E, D
    4. DB, A, C, D, E

    Answer: (B) B, A, C, E, D

    Explanation

    The capital budgeting decision follows a logical operational progression from inception to post-audit:

    B -> A -> C -> E -> D

    • B. Project Generation — originating and identifying investment ideas across departments.
    • A. Preliminary Screening Process — filtering proposals against corporate goals and high-level viability.
    • C. Detailed Project Evaluation — conducting discounted cash flow analyses such as NPV and IRR.
    • E. Project Selection and its implementation — formal authorization, fund allocation, and asset acquisition.
    • D. Control of Capital Expenditure — monitoring actual outlays against budget and performing post-completion reviews.

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15. Question 15

    Assertion (A): Heckscher and Ohlin developed a theory to explain the reasons for differences in relative commodity prices and competitive advantages between two nations. According to this theory, a nation will export the commodity whose production requires intensive use of nation's relatively abundant and cheap factors and import the commodity whose production requires intensive use of the nation's scarce and expensive factors.
    Reason (R): Thus, a country with an abundance of cheap labour would import labour intensive products and export capital intensive goods and vice-versa.
    In the light of the above statements, choose the most appropriate answer from the options given below :

    1. ABoth (A) and (R) are correct and (R) is the correct explanation of (A)
    2. BBoth (A) and (R) are correct but (R) is not the correct explanation of (A)
    3. C(A) is correct but (R) is not correct
    4. D(A) is not correct but (R) is correct

    Answer: (C) (A) is correct but (R) is not correct

    Explanation

    The Heckscher-Ohlin theorem states that countries have comparative advantage in goods requiring their abundant factor of production.

    • Assertion (A) is correct. A nation exports commodities that intensively use its abundant, cheap resources and imports commodities that intensively use its scarce, expensive resources.
    • Reason (R) is incorrect. A country with an abundance of cheap labour would export labour-intensive products and import capital-intensive products, which is the direct opposite of what Reason asserts.

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16. Question 16

    Which one of the followings is not a type of conflict ?

    1. ATask Conflict
    2. BRelationship Conflict
    3. CProcess Conflict
    4. DProduct Conflict

    Answer: (D) Product Conflict

    Explanation

    Organizational behavior research categorizes workplace conflict into three recognized dimensions.

    • Task Conflict — disagreements over the content, direction, and goals of the work.
    • Relationship Conflict — interpersonal friction, animosity, and personality clashes among coworkers.
    • Process Conflict — controversy over how task execution should proceed and how duties should be delegated.

    Product conflict is not a recognized category in organizational conflict frameworks.

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17. Question 17

    Which statement best captures the difference between FDI and FPI ?

    1. AFDI is investment with lasting interest and managerial control; FPI is passive investment without control.
    2. BFDI involves only equity investment; FPI involves both equity and debt security.
    3. CFDI is recorded in current account; FPI is recorded in capital account.
    4. DBoth FDI and FPI give investors voting rights in the host country.

    Answer: (A) FDI is investment with lasting interest and managerial control; FPI is passive investment without control.

    Explanation

    The fundamental distinction between FDI and FPI centers on management involvement and strategic longevity.

    • A. FDI has lasting interest and managerial control, FPI is passive — correct. FDI seeks a direct voice and substantial influence in enterprise operations, whereas FPI consists of liquid financial assets held purely for returns.
    • B. FDI involves only equity — incorrect. FDI includes debt instruments such as intercompany loans.
    • C. FDI in current account — incorrect. Both FDI and FPI are recorded in the financial and capital accounts.
    • D. Both give voting rights — incorrect. Non-voting shares and debt instruments in FPI carry no voting privileges.

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18. Question 18

    An empirical test was carried out in 1951 on Heckscher Ohlin model to find out whether or not the US, which has abundant capital resources, exports capital intensive goods and imports labour intensive goods. But, it was found that the US exported more labour -intensive commodities and imported more capital intensive products, which was contrary to the result of Heckscher - Ohlin model. Who has conducted the test ?

    1. AStaffan B Linder
    2. BDavid Ricardo
    3. CJ. B. Say
    4. DWassily Leontief

    Answer: (D) Wassily Leontief

    Explanation

    Wassily Leontief conducted an empirical examination of US foreign trade data in 1951 using input-output analysis.

    • Leontief observed that despite being the most capital-abundant nation in the world, the United States exported more labour-intensive goods and imported more capital-intensive goods.
    • This counter-intuitive empirical finding became known as the Leontief Paradox in international trade economics.

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19. Question 19

    Assertion (A): Section 91 provides for grant of unilateral relief in the case of resident taxpayers on income which has been taxed in India as well as in the country with which there is no Double Taxation Avoidance Agreement.
    Reason (R): The relief under section 91 is granted by allowing to the tax payer a deduction from tax liability of an amount equal to the tax calculated at the average Indian rate of tax or the amount of tax calculated at the rate of tax of that other country on the doubly taxed income, whichever is higher.
    In the light of the above statements, choose the most appropriate answer from the options given below :

    1. ABoth (A) and (R) are correct and (R) is the correct explanation of (A)
    2. BBoth (A) and (R) are correct but (R) is not the correct explanation of (A)
    3. C(A) is correct but (R) is not correct
    4. D(A) is not correct but (R) is correct

    Answer: (C) (A) is correct but (R) is not correct

    Explanation

    Section 91 of the Income Tax Act provides unilateral relief against double taxation when no bilateral agreement exists.

    • Assertion (A) is correct. Unilateral relief applies to resident taxpayers whose income has suffered tax in India and in a foreign country lacking a Double Taxation Avoidance Agreement.
    • Reason (R) is incorrect. Relief under Section 91 is calculated at the Indian rate of tax or the foreign country tax rate, whichever is lower, rather than whichever is higher.

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20. Question 20

    Assertion (A): The skimming price policy is adopted where close substitute of a new product are not available.
    Reason (R): This policy requires fixing a lower initial price designed to penetrate the market as quickly as possible and is intended to maximize the profit in the long run.
    In the light of the above statements, choose the most appropriate answer from the options given below :

    1. ABoth (A) and (R) are correct and (R) is the correct explanation of (A)
    2. BBoth (A) and (R) are correct but (R) is not the correct explanation of (A)
    3. C(A) is correct but (R) is not correct
    4. D(A) is not correct but (R) is correct

    Answer: (C) (A) is correct but (R) is not correct

    Explanation

    Price skimming involves launching an innovative product at a high premium price before competitors enter the market.

    • Assertion (A) is correct. Price skimming works best when close substitutes do not exist and consumers possess inelastic demand.
    • Reason (R) is incorrect. Fixing a low initial price to capture rapid market share describes penetration pricing, not skimming pricing.

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21. Question 21

    Arrange the following in ascending order of sections of Income Tax Act related to permissible deduction from Gross Total Income :
    A. Deduction in respect of Medical Insurance Premia
    B. Deduction in respect of Royalty Income of Author
    C. Deduction in respect of Payment of Interest on Loan taken for Higher Education
    D. Deduction in respect of Interest on Deposits in Saving Accounts
    E. Deduction in respect of Donations to Certain Funds, charitable Institutions, etc.
    Choose the correct answer from the options given below :

    1. AA, B, C, D, E
    2. BE, D, C, B, A
    3. CA, C, E, D, B
    4. DA, C, E, B, D

    Answer: (D) A, C, E, B, D

    Explanation

    The Chapter VI-A deductions follow this chronological statutory section order:

    A (80D) -> C (80E) -> E (80G) -> B (80QQB) -> D (80TTA)

    • A. Section 80D — medical insurance premia.
    • C. Section 80E — interest on loan taken for higher education.
    • E. Section 80G — donations to designated charitable funds.
    • B. Section 80QQB — royalty income of authors of literary, artistic, or scientific books.
    • D. Section 80TTA — interest on deposits in savings accounts.

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22. Question 22

    Match List - I with List - II.

    List - I (Tax Deducted at Source)	List - II (Sections of Income Tax Act)
    A. Deduction of Tax at Source on Fees for Professional or Technical Services	I. Section 194A
    B. Deduction of Tax at Source from Payment of life Insurance Policy	II. Section 194B
    C. Deduction of Tax at Source from Winnings from Lotteries or Crossword Puzzles	III. Section 194DA
    D. Deduction of Tax at Source from Interest other than Interest on Securities	IV. Section 194J

    1. AA-I, B-II, C-III, D-IV
    2. BA-IV, B-III, C-II, D-I
    3. CA-I, B-II, C-IV, D-III
    4. DA-II, B-I, C-III, D-IV

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

    Explanation

    TDS provisions in the Income Tax Act correspond to the following sections:

    A-IV, B-III, C-II, D-I

    • A. Fees for Professional or Technical Services — Section 194J governs fees for professional and technical services.
    • B. Payment of Life Insurance Policy — Section 194DA governs maturity payments on life insurance policies.
    • C. Winnings from Lotteries or Crossword Puzzles — Section 194B mandates tax deduction on lottery and puzzle winnings.
    • D. Interest other than Interest on Securities — Section 194A mandates TDS on bank interest and commercial interest.

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23. Question 23

    The Break Even point expressed in amount of sales in rupees of X ltd having selling Price of ₹ 20 per unit, variable cost of ₹ 14 per unit and fixed cost of ₹ 7,92,000 is :

    1. A₹ 11,28,571
    2. B₹ 1,32,000
    3. C₹ 39,600
    4. D₹ 26,40,000

    Answer: (D) ₹ 26,40,000

    Explanation

    Break-even sales value is calculated using the profit-volume ratio:

    Contribution per unit = Selling Price - Variable Cost
    Contribution per unit = 20 - 14 = ₹ 6

    P/V Ratio = Contribution / Selling Price
    P/V Ratio = 6 / 20 = 0.30 or 30%

    Break Even Sales = Fixed Cost / P/V Ratio
    Break Even Sales = 7,92,000 / 0.30 = ₹ 26,40,000

    Alternatively, break-even output equals 7,92,000 / 6 = 1,32,000 units, which at ₹ 20 per unit yields ₹ 26,40,000.

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24. Question 24

    The right of the insurer to stand in the place of insured after the settlement of a claim and it gives the insurer right to recover from an alternative source, the principle involved in this case is called :

    1. APrinciple of Insurable Interest
    2. BPrinciple of Subrogation
    3. CPrinciple of Causa Proxima
    4. DPrinciple of Contribution

    Answer: (B) Principle of Subrogation

    Explanation

    Subrogation is an established corollary to the principle of indemnity in property and liability insurance.

    • A. Principle of Insurable Interest — requires the insured to have a financial interest in the preservation of the insured subject matter.
    • B. Principle of Subrogation — transfers the insured recovery rights against third parties to the insurer once the claim is fully indemnified.
    • C. Principle of Causa Proxima — stipulates that the nearest or immediate cause must be examined to determine liability for a loss.
    • D. Principle of Contribution — allows an insurer who paid the entire claim to seek proportionate recovery from co-insurers.

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25. Question 25

    Which of the followings are the myths about Rural Market ?
    A. All Villages are equally populated
    B. Rural Consumers are a heterogeneous lot
    C. Being illiterate, rural consumer is not able to discriminate between products and brands
    D. Only low priced products will sell in rural India
    E. Rural markets are the consumer durable markets
    Choose the correct answer from the options given below :

    1. AA, B, C and D Only
    2. BA, C and D Only
    3. CC, D and E Only
    4. DB, C, D and E Only

    Answer: (B) A, C and D Only

    Explanation

    Rural marketing literature contrasts common industry myths with ground realities of Indian rural consumer behavior.

    • A. All villages are equally populated — myth. Indian villages vary tremendously in size, infrastructure, and population density.
    • B. Rural consumers are heterogeneous — reality. Diversity in language, geography, income, and culture is an acknowledged fact.
    • C. Rural consumers cannot discriminate brands — myth. Rural consumers recognize visual identifiers, logos, and color palettes effectively.
    • D. Only low-priced products sell in rural India — myth. Rural buyers seek perceived value for money, frequently purchasing premium brands.

    Because statement B is an empirical reality rather than a misconception, only statements A, C, and D are myths.

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26. Question 26

    Assertion (A): New Issue of Capital is costlier than Retained Earnings.
    Reason (R): The cost of Retained Earnings is the return foregone by the shareholders on the dividend income.

    In the light of the above statements, choose the most appropriate answer from the options given below :

    1. ABoth (A) and (R) are correct and (R) is the correct explanation of (A)
    2. BBoth (A) and (R) are correct but (R) is not the correct explanation of (A)
    3. C(A) is correct but (R) is not correct
    4. D(A) is not correct but (R) is correct

    Answer: (B) Both (A) and (R) are correct but (R) is not the correct explanation of (A)

    Explanation

    Flotation costs make newly issued equity capital costlier than retained earnings.

    • Assertion (A) is correct. Raising fresh equity involves underwriting, brokerage, legal expenses, and listing fees, whereas retained earnings incur zero flotation costs.
    • Reason (R) is correct. The cost of retained earnings represents the opportunity cost of dividend returns foregone by shareholders.

    Reason correctly defines the opportunity cost concept of retained earnings, but it does not explain why new equity is costlier, which is driven by issue and flotation expenses.

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27. Question 27

    Match List - I with List - II.

    List - I	List - II
    A. Operating Leverage	I. Contribution/EBT
    B. Combined Leverage	II. Contribution/EBIT
    C. Earning Per Share	III. EBIT/EBT
    D. Financial Leverage	IV. EAT/No. of Equity Shares

    1. AA-I, B-II, C-IV, D-III
    2. BA-II, B-I, C-IV, D-III
    3. CA-II, B-I, C-III, D-IV
    4. DA-I, B-II, C-III, D-IV

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

    Explanation

    Financial leverages and performance metrics correspond to standard corporate finance formulas:

    A-II, B-I, C-IV, D-III

    • A. Operating Leverage — Contribution / EBIT measures operating risk from fixed production costs.
    • B. Combined Leverage — Contribution / EBT measures total risk encompassing both operating and financial leverage.
    • C. Earning Per Share — EAT / Number of Equity Shares measures net profitability per ordinary share.
    • D. Financial Leverage — EBIT / EBT measures financial risk arising from fixed interest obligations.

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28. Question 28

    Which one of the followings is not a type of organizational culture ?

    1. ANon-Entrepreneurial Culture
    2. BPower Culture
    3. CRole Culture
    4. DTask Culture

    Answer: (A) Non-Entrepreneurial Culture

    Explanation

    Charles Handy classical organizational culture typology establishes four distinct cultural structures.

    • Power Culture (Web) — authority and decisions radiate from a central powerful figure.
    • Role Culture (Temple) — formalized bureaucracy driven by functions, rules, and procedures.
    • Task Culture (Net) — project-focused teams assembled to resolve specific dynamic problems.
    • Person Culture (Cluster) — organization serves the collective interests of individual professionals.

    Non-entrepreneurial culture is not a recognized category in Handy or standard organizational culture models.

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29. Question 29

    Which one of the followings is not a component of formal (organized) financial system ?

    1. AFinancial Markets
    2. BFinancial Instruments
    3. CChit-fund Companies
    4. DFinancial Services

    Answer: (C) Chit-fund Companies

    Explanation

    The formal financial system consists of four institutional pillars regulated by statutory authorities.

    • Financial Institutions — commercial banks, development financial institutions, and insurance entities.
    • Financial Markets — money and capital markets facilitating capital allocation.
    • Financial Instruments — equity, debt, treasury bills, and commercial paper.
    • Financial Services — credit rating, underwriting, factoring, and custodial services.

    Chit funds belong historically to the informal and unorganized credit system rather than the formal institutional structure.

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30. Question 30

    Match List - I with List - II.

    List - I	List - II
    A. Probable Error of Correlation Coefficient	I. Explained Variation / Total Variation
    B. Standard Error of Correlation Coefficient	II. Unexplained Variation / Total Variation
    C. Coefficient of Determination	III. (1 − r²) / √n
    D. Coefficient of Alienation	IV. 0.6745 [(1 − r²) / √n]

    1. AA-I, B-II, C-III, D-IV
    2. BA-IV, B-III, C-II, D-I
    3. CA-III, B-IV, C-I, D-II
    4. DA-IV, B-III, C-I, D-II

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

    Explanation

    Correlation and regression relationships match these established statistical formulations:

    A-IV, B-III, C-I, D-II

    • A. Probable Error of Correlation Coefficient — 0.6745 [(1 - r^2) / sqrt(n)] measures reliability of the sample correlation.
    • B. Standard Error of Correlation Coefficient — (1 - r^2) / sqrt(n) gives the standard deviation of the sampling distribution of r.
    • C. Coefficient of Determination — Explained Variation / Total Variation measures the proportion of variance explained by regression.
    • D. Coefficient of Alienation — Unexplained Variation / Total Variation reflects the proportion of unaccounted variance.

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31. Question 31

    Match List - I with List - II.

    List - I	List - II
    A. Ind AS 7	I. Impairment of Assets
    B. Ind AS 24	II. Related Party Disclosures
    C. Ind AS 36	III. Consolidated Financial Statement
    D. Ind AS 110	IV. Statement of Cash Flows

    1. AA-I, B-II, C-III, D-IV
    2. BA-IV, B-II, C-I, D-III
    3. CA-III, B-IV, C-I, D-II
    4. DA-IV, B-III, C-II, D-I

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

    Explanation

    Indian Accounting Standards correspond to the following accounting subject areas:

    A-IV, B-II, C-I, D-III

    • A. Ind AS 7 — Statement of Cash Flows sets criteria for operating, investing, and financing flows.
    • B. Ind AS 24 — Related Party Disclosures mandates reporting of control relationships and transactions.
    • C. Ind AS 36 — Impairment of Assets governs recoverable amounts and impairment loss recognition.
    • D. Ind AS 110 — Consolidated Financial Statements specifies control principles and consolidation procedures.

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32. Question 32

    Arrange the following in descending order on the basis of number of sellers in the Market.
    A. Duopoly
    B. Oligopoly
    C. Monopolistic Competition
    D. Perfect Competition
    Choose the correct answer from the options given below :

    1. AD, C, B, A
    2. BB, A, C, D
    3. CA, B, C, D
    4. DB, D, A, C

    Answer: (A) D, C, B, A

    Explanation

    Ranking market structures by number of sellers from highest to lowest gives this sequence:

    D -> C -> B -> A

    • D. Perfect Competition — infinite number of small, price-taking sellers producing homogeneous goods.
    • C. Monopolistic Competition — large number of sellers competing with differentiated products.
    • B. Oligopoly — few large sellers dominating industry sales.
    • A. Duopoly — exactly two sellers controlling the entire market supply.

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33. Question 33

    Which of the followings is/are the part of external environment (macro) of Business ?
    A. Customers
    B. Economic factors
    C. Natural factors
    D. Marketing Intermediaries
    E. Competitors
    Choose the correct answer from the options given below :

    1. AB and D Only
    2. BB and C Only
    3. CA, B, C and D Only
    4. DB, C, D and E Only

    Answer: (B) B and C Only

    Explanation

    Business environment analysis divides external forces into micro and macro layers.

    • Macro environment — broad societal forces outside company control, including Economic (B), Natural and Ecological (C), Political, Socio-cultural, and Technological factors.
    • Micro environment — immediate actors influencing daily operations, including Customers (A), Marketing Intermediaries (D), and Competitors (E).

    Therefore, only economic factors (B) and natural factors (C) form part of the macro environment.

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34. Question 34

    Arrange the followings in the correct sequence in which they are computed for determining Net Cash from operating activities as per AS-3 (Revised) :
    A. Operating profit before Working Capital Changes
    B. Cash flow before extra ordinary items
    C. Cash generated from operations
    D. Net Profit before taxation and extra ordinary items
    Choose the correct answer from the options given below :

    1. AA, B, C, D
    2. BD, B, A, C
    3. CC, D, B, A
    4. DD, A, C, B

    Answer: (D) D, A, C, B

    Explanation

    Under the indirect method of AS-3 (Revised), operating cash flow is determined through this accounting progression:

    D -> A -> C -> B

    • D. Net Profit before taxation and extraordinary items — baseline accounting profit derived from the statement of profit and loss.
    • A. Operating profit before Working Capital Changes — derived by adjusting for non-cash expenses such as depreciation.
    • C. Cash generated from operations — derived by adjusting for changes in inventories, receivables, and payables.
    • B. Cash flow before extraordinary items — derived by deducting actual income tax payments.

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35. Question 35

    Suppose a production function is given as
    Q = − L³ + 5L² + 10L
    Which law of production is revealed by this production function :

    1. ALaw of diminishing return
    2. BLaw of increasing return
    3. CLaw of constant return
    4. DLaw of return to scale

    Answer: (A) Law of diminishing return

    Explanation

    A single-variable cubic production function depicts the classical short-run Law of Variable Proportions or Law of Diminishing Returns.

    Marginal Product of Labour:
    MP_L = dQ/dL = -3L^2 + 10L + 10

    • At small output quantities, increasing marginal returns occur as L rises.
    • As additional labour is employed against fixed capital, the negative cubic term dominates, causing marginal returns to decline and eventually turn negative.
    • Laws of returns to scale require proportional variation of all inputs, whereas this function features solely variable labour input L.

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36. Question 36

    Arrange the following steps of process of consumer buying in proper sequence :
    A. Evaluation of Alternatives
    B. Search for Alternatives
    C. Need Recognitions
    D. Decision
    E. Development of Decision Criteria
    Choose the correct answer from the options given below :

    1. AC, B, A, E, D
    2. BC, A, B, E, D
    3. CC, E, B, A, D
    4. DB, A, C, E, D

    Answer: (C) C, E, B, A, D

    Explanation

    In comprehensive consumer decision models, evaluative criteria are framed before conducting alternative search:

    C -> E -> B -> A -> D

    • C. Need Recognition — consumer senses a gap between actual and desired states.
    • E. Development of Decision Criteria — establishing the standards, features, and price limits required.
    • B. Search for Alternatives — scanning internal memory and external sources for options that satisfy criteria.
    • A. Evaluation of Alternatives — comparing gathered brand options against the defined standards.
    • D. Decision — committing to purchase the preferred product choice.

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37. Question 37

    An infinite series of equal cash flow occurring at regular time interval is known as :

    1. AAn Annuity
    2. BAn Annuity Due
    3. CPerpetuity
    4. DFuture Value

    Answer: (C) Perpetuity

    Explanation

    A perpetual stream of constant periodic payments is formally defined as a perpetuity.

    • A. An Annuity — series of equal cash flows occurring over a fixed, finite time horizon.
    • B. An Annuity Due — series of equal payments made at the beginning of each period for a finite duration.
    • C. Perpetuity — an annuity that continues indefinitely without any termination date.
    • D. Future Value — compounded value of a present sum or cash flow stream at a future point in time.

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38. Question 38

    Match List - I with List - II.

    List - I	List - II
    A. Occurs when a true null hypothesis is rejected	I. Type II Error
    B. Occurs when false null hypothesis does not get rejected	II. Type I Error
    C. Used for data from interval or ratio scales	III. Nonparametric Tests
    D. Used to test hypotheses with nominal and ordinal data	IV. Parametric Tests

    1. AA-I, B-II, C-III, D-IV
    2. BA-I, B-II, C-IV, D-III
    3. CA-II, B-I, C-IV, D-III
    4. DA-II, B-I, C-III, D-IV

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

    Explanation

    Hypothesis testing errors and measurement scales match standard statistical definitions:

    A-II, B-I, C-IV, D-III

    • A. Rejecting a true null hypothesis — Type I Error represents rejecting the null when it is true.
    • B. Failing to reject a false null hypothesis — Type II Error represents accepting the null when it is false.
    • C. Data from interval or ratio scales — Parametric tests assume underlying continuous distributions.
    • D. Nominal and ordinal data — Nonparametric distribution-free tests handle categorical and ranked data.

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39. Question 39

    Which one of the followings is not a method of New Issues ?

    1. APublic Issue through Prospectus
    2. BRight Issue
    3. CBonus Issue
    4. DBook Building

    Answer: (C) Bonus Issue

    Explanation

    Primary market new issue methods are designed to mobilize fresh capital for an issuing corporation.

    • Public Issue through Prospectus — offering shares directly to the public for cash.
    • Right Issue — offering additional shares to existing equity holders for fresh subscription money.
    • Book Building — price discovery mechanism for floating an initial public offering.
    • Bonus Issue — capitalisation of reserves whereby existing shareholders receive free shares without any fresh cash inflow into the company.

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40. Question 40

    If demand equation is given by
    D = 10,000 − P
    and the supply equation is given by
    S = 1000 + 4P, the equilibrium price would be

    1. A1600
    2. B1800
    3. C1700
    4. D2000

    Answer: (B) 1800

    Explanation

    Market equilibrium price occurs where quantity demanded equals quantity supplied:

    Demand = Supply
    10000 - P = 1000 + 4P

    10000 - 1000 = 4P + P
    9000 = 5P
    P = 9000 / 5
    P = 1800

    Equilibrium quantity at price 1800 equals 10000 - 1800 = 8200 units.

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41. Question 41

    Which of the following statements is incorrect for Amalgamation in the nature of merger ?

    1. AAll assets and liabilities of the transferor company taken over by the transferee company
    2. BShareholders of the transferor company need not become equity shareholders of the transferee company
    3. CPayment of purchase consideration is made in cash only for fractional shares, if any.
    4. DThe business of Transferor Company is intended to be carried on, after amalgamation, by the transferee company

    Answer: (B) Shareholders of the transferor company need not become equity shareholders of the transferee company

    Explanation

    Accounting Standard 14 specifies five mandatory criteria for an amalgamation to qualify as a merger.

    • A. All assets and liabilities transferred — correct. Every asset and liability of the vendor company becomes that of the purchasing firm.
    • B. Shareholders need not become shareholders — incorrect. Equity shareholders holding at least 90% of the face value of shares must become equity shareholders in the transferee company.
    • C. Consideration in equity shares with cash for fractions — correct. Discharge must be via equity shares except cash for fractional holdings.
    • D. Continuation of business — correct. The transferee company must intend to continue the business of the transferor.

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42. Question 42

    Process of ensuring access to appropriate financial products and services needed by all sections of the society in general and vulnerable group such as weaker sections and low-income groups in particular at an affordable cost in a fair and transparent manner by mainstream institutional players is referred to as :

    1. AFinancial Integration
    2. BFinancial Instability
    3. CFinancial Inclusion
    4. DMonetary Instability

    Answer: (C) Financial Inclusion

    Explanation

    Providing vulnerable and low-income segments fair, transparent, and affordable access to formal financial services defines financial inclusion.

    • A. Financial Integration — interlinking of domestic and global financial markets.
    • B. Financial Instability — systemic vulnerability and disruption in financial intermediation.
    • C. Financial Inclusion — delivering banking, credit, insurance, and payment access to underserved populations.
    • D. Monetary Instability — macroeconomic volatility in price levels and currency valuation.

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43. Question 43

    Mr. A, a resident in India, aged 60 years, earned agricultural income of ₹ 5,00,000 and non-agricultural income of ₹ 3,80,000 for assessment year 2025-26. The tax liability of Mr. A assuming that he does not opt to be taxed under the old tax regime is :

    1. A₹ 38,000
    2. B₹ 3,640
    3. C₹ 8,000
    4. DNil

    Answer: (D) Nil

    Explanation

    Under the default new tax regime of Section 115BAC for Assessment Year 2025-26, full rebate under Section 87A applies.

    Partial integration computation:

    • Step 1: Tax on Non-Agri + Agri (₹ 3,80,000 + ₹ 5,00,000 = ₹ 8,80,000) under new regime rates equals ₹ 43,000.
    • Step 2: Tax on Basic Exemption + Agri (₹ 3,00,000 + ₹ 5,00,000 = ₹ 8,00,000) equals ₹ 35,000.
    • Step 3: Gross tax liability before rebate equals 43,000 - 35,000 = ₹ 8,000.

    Rebate under Section 87A:

    • Total taxable income is ₹ 3,80,000, which does not exceed ₹ 7,00,000.
    • Section 87A grants a full rebate of 100% of income tax up to ₹ 25,000, reducing final tax liability to Nil.

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44. Question 44

    What will be the value of AR, if elasticity of demand is unit elastic and the value of MR is 5 ?

    1. A2.5
    2. B5
    3. C1
    4. D10

    Answer: (B) 5

    Explanation

    Average revenue, marginal revenue, and price elasticity of demand are governed by the Amoroso-Robinson relation:

    MR = AR * (1 - 1 / e)

    • Under strict economic theory, unit elasticity (e = 1) yields MR = 0.
    • In simplified examination problem conventions using the ratio e = AR / MR, setting e = 1 with MR = 5 gives AR = MR * e = 5 * 1 = 5.
    • Option B (5) matches this direct one-to-one proportion.

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45. Question 45

    Arrange the following steps of Sampling Design Process in correct order :
    A. Determine the sample size
    B. Select a sampling technique
    C. Selection of sampling frame
    D. Target Population definitions
    Choose the correct answer from the options given below :

    1. AA, B, C, D
    2. BD, C, B, A
    3. CC, D, B, A
    4. DB, D, C, A

    Answer: (B) D, C, B, A

    Explanation

    The sampling design process follows a sequential logical progression:

    D -> C -> B -> A

    • D. Target Population definitions — specifying the universe and elements under study.
    • C. Selection of sampling frame — obtaining the operational list from which sample units are drawn.
    • B. Select a sampling technique — choosing probability or non-probability sampling methods.
    • A. Determine the sample size — calculating required sample units based on variance and precision requirements.

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46. Question 46

    Arrange the following steps of Selection Process in correct order :
    A. Selection Tests
    B. Reference and Background Analysis
    C. Preliminary Interview
    D. Employment Interview
    E. Job Offer
    Choose the correct answer from the options given below :

    1. AA, B, C, D, E
    2. BC, A, B, D, E
    3. CC, A, D, B, E
    4. DA, C, B, D, E

    Answer: (C) C, A, D, B, E

    Explanation

    Human resource selection follows a standardized sequential screening workflow:

    C -> A -> D -> B -> E

    • C. Preliminary Interview — initial screening to eliminate clearly unqualified candidates.
    • A. Selection Tests — evaluating candidate aptitude, personality, and technical proficiencies.
    • D. Employment Interview — comprehensive dialogue assessing fit and depth.
    • B. Reference and Background Analysis — verifying previous employment credentials and integrity.
    • E. Job Offer — issuing formal employment letters to selected applicants.

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47. Question 47

    Which of the followings are the types of decentralisation in an organisation ?
    A. Profit Centres
    B. Service Centres
    C. Cost Centres
    D. Investment Centres
    Choose the correct answer from the options given below :

    1. AA, B and C Only
    2. BA, C and D Only
    3. CA, B and D Only
    4. DB, C and D Only

    Answer: (B) A, C and D Only

    Explanation

    Responsibility accounting recognizes three core structural centers of organizational decentralization:

    • A. Profit Centres — autonomous units evaluated on the difference between revenues and expenses.
    • C. Cost Centres — divisions responsible strictly for controlling costs and input usage.
    • D. Investment Centres — units evaluated on return on capital invested alongside operating profit.

    While service departments support core operations, Cost, Profit, and Investment Centres form the primary responsibility accounting triad.

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48. Question 48

    Arrange the following committees as per their year of formation in ascending order :
    A. Narsimham Committee - I
    B. Padmanabhan Committee
    C. Verma Committee
    D. Saraf Committee
    E. Rashid Jilani Committee
    Choose the correct answer from the options given below :

    1. AA, B, C, D, E
    2. BA, E, D, B, C
    3. CA, E, B, D, C
    4. DA, D, E, B, C

    Answer: (B) A, E, D, B, C

    Explanation

    Major Reserve Bank of India banking sector committees were constituted in this chronological order:

    A (1991) -> E (1993) -> D (1994) -> B (1995) -> C (1999)

    • A. Narasimham Committee - I (1991) — committee on the financial system.
    • E. Rashid Jilani Committee (1993) — working group on cash credit delivery system.
    • D. Saraf Committee (1994) — committee on technology issues in the banking sector.
    • B. Padmanabhan Committee (1995) — committee to review on-site bank supervision.
    • C. Verma Committee (1999) — working group on restructuring weak public sector banks.

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49. Question 49

    Arrange the following institutions as per their year of establishment in ascending order :
    A. NAFTA
    B. EU
    C. ASEAN
    D. UNCTAD
    Choose the correct answer from the options given below :

    1. AA, B, C, D
    2. BD, A, C, B
    3. CB, D, C, A
    4. DB, C, A, D

    Answer: (C) B, D, C, A

    Explanation

    These international organizations and economic trade blocs were established in this sequence:

    B (1957) -> D (1964) -> C (1967) -> A (1994)

    • B. EU (1957) — origins trace to the Treaty of Rome establishing the European Economic Community.
    • D. UNCTAD (1964) — United Nations Conference on Trade and Development was founded.
    • C. ASEAN (1967) — Association of Southeast Asian Nations established via Bangkok Declaration.
    • A. NAFTA (1994) — North American Free Trade Agreement entered into force.

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50. Question 50

    Match List - I with List - II.

    List - I	List - II
    A. Standard Deduction under Section 16(ia)	I. Income under the head Capital Gains
    B. Standard Deduction under Section 24	II. Income under the head Profits and Gains of Business or Profession
    C. Depreciation Allowance under Section 32	III. Income Under the Head Income from House Property
    D. Exemption Under Section 54 for Profit on transfer of house property used for residence	IV. Income Under the Head Salaries

    1. AA-I, B-II, C-III, D-IV
    2. BA-IV, B-III, C-II, D-I
    3. CA-III, B-IV, C-II, D-I
    4. DA-III, B-IV, C-I, D-II

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

    Explanation

    Statutory tax deductions match their respective heads of income under the Income Tax Act:

    A-IV, B-III, C-II, D-I

    • A. Standard Deduction under Section 16(ia) — flat standard deduction allowed against Income from Salaries.
    • B. Standard Deduction under Section 24 — thirty percent statutory deduction allowed on net annual value under House Property.
    • C. Depreciation Allowance under Section 32 — business asset depreciation deductible under Profits and Gains of Business or Profession.
    • D. Exemption under Section 54 — capital gains exemption on roll-over investment in residential house property.

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51. Question 51

    India's participation in SAARC and ASEAN trade pacts primarily reflects which level of Regional Economic Integration ?

    1. ACustoms Union
    2. BFree Trade Area
    3. CEconomic Union
    4. DCommon Market

    Answer: (B) Free Trade Area

    Explanation

    India participation in regional arrangements such as SAFTA under SAARC and AIFTA with ASEAN constitutes a Free Trade Area.

    • A. Customs Union — establishes common external tariffs against third nations alongside internal free trade.
    • B. Free Trade Area — eliminates internal tariffs and quantitative barriers on goods among signatories while allowing each nation to maintain its own independent external trade policy.
    • C. Economic Union — involves complete economic integration with harmonized monetary and fiscal institutions.
    • D. Common Market — permits free mobility of labour and capital across national borders in addition to goods.

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52. Question 52

    Which of the followings is not a core function of WTO ?

    1. AProviding a forum for trade negotiation
    2. BAdministering agreement such as GATS, TRIPS and TRIMS
    3. CMonitoring trade policies
    4. DProviding Concessional loans and financial aid to developing countries

    Answer: (D) Providing Concessional loans and financial aid to developing countries

    Explanation

    The World Trade Organization focuses on rule-based international trade governance rather than development lending.

    • Providing a forum for trade negotiation — primary WTO function enabling multilateral trade rounds.
    • Administering covered agreements — oversees implementation of goods, GATS, and TRIPS treaties.
    • Monitoring trade policies — conducts periodic Trade Policy Reviews of member states.
    • Disbursing concessional development aid — mandate reserved for multilateral development banks such as IDA and IBRD.

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53. Question 53

    Non-receipt of dividend by Investors is categorised in which type of complaints received by the SEBI ?

    1. AType I
    2. BType II
    3. CType III
    4. DType IV

    Answer: (A) Type I

    Explanation

    Under the SEBI Complaints Redress System SCORES framework, investor grievances are classified by entity type.

    • Type I Complaints — grievances against listed companies regarding non-receipt of dividend, interest, refund orders, or share certificates.
    • Type II Complaints — grievances involving registered stock brokers and sub-brokers.
    • Type III Complaints — grievances filed against depository participants.
    • Type IV Complaints — grievances directed toward mutual funds and asset management companies.

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54. Question 54

    Which of the following statements are incorrect ?
    A. Management audit is not compulsory under any law.
    B. Vouching is concerned only with items of balance sheet.
    C. Section 148 of the Companies Act, 2013 has made Cost Audit mandatory for some limited companies
    D. The object of vouching is to satisfy the auditor as to existence, ownership, possession, completeness, valuation and disclosure of items mentioned in the Balance Sheet.
    E. Independent financial audit has been made compulsory for many entities established under respective Acts.
    Choose the correct answer from the options given below :

    1. AB, C and E Only
    2. BA, B and C Only
    3. CB and D Only
    4. DA, C and E Only

    Answer: (C) B and D Only

    Explanation

    Auditing principles distinguish between documentary vouching of transactions and balance sheet asset verification.

    • Statement B is incorrect — vouching focuses on transactions recorded in books of original entry, primarily revenue and expense items.
    • Statement D is incorrect — verifying existence, ownership, possession, valuation, and disclosure defines the objective of asset verification, not vouching.
    • Statements A, C, and E are correct — management audit is voluntary, Section 148 mandates cost audits for specified enterprises, and statutory audits are compulsory under corporate law.

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55. Question 55

    Match List - I with List - II.

    List - I (Human Resource Valuation Approaches)	List - II (Propounders)
    A. Historical Cost Approach	I. Brummet, Flamholtz and Plye
    B. Opportunity Cost approach	II. Hekimian and Jones
    C. Standard Cost Approach	III. David Watson
    D. Present Value of Future Earning Model	IV. Lav and Schwartz

    1. AA-I, B-II, C-III, D-IV
    2. BA-II, B-I, C-IV, D-III
    3. CA-III, B-IV, C-I, D-II
    4. DA-IV, B-III, C-I, D-II

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

    Explanation

    Human resource valuation models link directly to their seminal academic authors:

    A-I, B-II, C-III, D-IV

    • A. Historical Cost Approach — Brummet, Flamholtz, and Pyle developed human asset cost capitalization.
    • B. Opportunity Cost approach — Hekimian and Jones introduced internal competitive bidding for scarce talent.
    • C. Standard Cost Approach — David Watson proposed standard costs of recruitment and training.
    • D. Present Value of Future Earning Model — Lev and Schwartz modeled capitalized present value of future earnings.

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56. Question 56

    Match List - I with List - II.

    List - I	List - II
    A. Greenfield Investment	I. Direct Investment overseas aimed to sell the output of a firm's domestic production process
    B. Foreign Portfolio Investment	II. Overseas investment to acquire existing facilities
    C. Forward Vertical FDI	III. Overseas investment to create new facilities from the ground up
    D. Brownfield Investment	IV. Investment in foreign financial instruments such as foreign stock, government bonds etc.

    1. AA-III, B-IV, C-II, D-I
    2. BA-I, B-II, C-III, D-IV
    3. CA-IV, B-III, C-I, D-II
    4. DA-III, B-IV, C-I, D-II

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

    Explanation

    International investment classifications correspond to these operational definitions:

    A-III, B-IV, C-I, D-II

    • A. Greenfield Investment — establishment of brand-new production facilities overseas from the ground up.
    • B. Foreign Portfolio Investment — passive investment in foreign financial assets such as stocks and sovereign bonds.
    • C. Forward Vertical FDI — downstream investment in overseas marketing or distribution to sell domestic output.
    • D. Brownfield Investment — acquiring, purchasing, or leasing existing overseas facilities.

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57. Question 57

    Which of the following sections of research reports contains Executive Summary ?

    1. APrefatory Information
    2. BIntroductory Information
    3. CMain Research Body
    4. DSupplementary Information

    Answer: (A) Prefatory Information

    Explanation

    Research report layouts position the Executive Summary within the preliminary prefatory materials.

    • A. Prefatory Information — front matter encompassing title page, letter of transmittal, contents, and the executive summary.
    • B. Introductory Information — background, problem statement, research objectives, and operational definitions.
    • C. Main Research Body — theoretical framework, methodology, data presentation, and findings.
    • D. Supplementary Information — appendices, raw questionnaires, and bibliography.

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58. Question 58

    Which one of the followings is not a type of Organisation charts ?

    1. AVertical Chart
    2. BCircular Chart
    3. CDiagonal Chart
    4. DHorizontal Chart

    Answer: (C) Diagonal Chart

    Explanation

    Standard organization theory recognizes three primary physical layouts for structural charts.

    • Vertical Chart — classic pyramid format showing hierarchy flowing from top management downward.
    • Horizontal Chart — lateral layout showing scalar chains progressing from left to right.
    • Circular Chart — concentric circles with the chief executive at the center radiating outward.

    Diagonal chart is not a recognized formal type of organization structure diagram.

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59. Question 59

    Match List - I with List - II.

    List - I	List - II
    A. Making provision for bad and doubtful debts and for discount on debtors	I. Cost Concept
    B. Expenses should be recognised in the period in which associated revenue is recognised	II. Going Concern
    C. Assets are not shown at their current realisable value	III. Matching Concept
    D. Internally generated goodwill is not recorded in the books of account	IV. Conservatism

    1. AA-I, B-II, C-III, D-IV
    2. BA-IV, B-III, C-II, D-I
    3. CA-IV, B-II, C-III, D-I
    4. DA-II, B-I, C-IV, D-III

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

    Explanation

    Accounting practices map directly to foundational accounting concepts and conventions:

    A-IV, B-III, C-II, D-I

    • A. Provision for bad debts and debtor discount — Conservatism dictates anticipating losses while recognizing no unearned gains.
    • B. Expenses recognized when associated revenue is recognized — Matching concept links costs to the revenues they help generate.
    • C. Assets not shown at current realisable value — Going Concern assumes the enterprise will continue operating indefinitely.
    • D. Internally generated goodwill not recorded — Historical Cost concept prohibits recording assets lacking quantifiable monetary acquisition cost.

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60. Question 60

    Arrange the following Acts in ascending order as per their year of enactment :
    A. RTI (Rights to Information Act)
    B. Competitions Act
    C. Information Technology Act
    D. Negotiable Instrument Act
    E. Indian Contract Act
    Choose the correct answer from the options given below :

    1. AE, D, C, B, A
    2. BA, B, C, D, E
    3. CA, B, E, D, C
    4. DE, D, C, A, B

    Answer: (A) E, D, C, B, A

    Explanation

    Commercial and administrative statutes in India were enacted in this chronological order:

    E (1872) -> D (1881) -> C (2000) -> B (2002) -> A (2005)

    • E. Indian Contract Act — enacted in 1872.
    • D. Negotiable Instruments Act — enacted in 1881.
    • C. Information Technology Act — enacted in 2000.
    • B. Competition Act — enacted in 2002.
    • A. Right to Information Act — enacted in 2005.

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61. Question 61

    Karl Pearson’s Coefficient of Skewness for a distribution having mean of 6.82, median of 6.8 and standard Deviation of 1.4 is :

    1. A0.014
    2. B0.028
    3. C0.043
    4. D0.056

    Answer: (C) 0.043

    Explanation

    Karl Pearson second coefficient of skewness based on median is computed as follows:

    Sk_p = 3 * (Mean - Median) / Standard Deviation

    Mean - Median = 6.82 - 6.80 = 0.02
    Numerator = 3 * 0.02 = 0.06

    Sk_p = 0.06 / 1.4 = 6 / 140 = 3 / 70 = 0.042857

    Rounding to three decimal places yields 0.043.

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62. Question 62

    Match List - I with List - II.

    List - I	List - II
    A. Doctrine of Caveat Emptor	I. Special Contract
    B. Bailment and Pledge	II. Limited Liability Partnership
    C. Holder in due Course	III. Sales of Goods Act
    D. DPIN	IV. Negotiable Instrument

    1. AA-IV, B-I, C-II, D-III
    2. BA-I, B-II, C-IV, D-III
    3. CA-II, B-I, C-III, D-IV
    4. DA-III, B-I, C-IV, D-II

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

    Explanation

    Legal doctrines and business statutes match as follows:

    A-III, B-I, C-IV, D-II

    • A. Doctrine of Caveat Emptor — codified in Section 16 of the Sale of Goods Act 1930.
    • B. Bailment and Pledge — classified as special contracts under Chapter IX of the Indian Contract Act 1872.
    • C. Holder in Due Course — defined under Section 9 of the Negotiable Instruments Act 1881.
    • D. DPIN — Designated Partner Identification Number governed by the Limited Liability Partnership Act 2008.

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63. Question 63

    Assertion (A): An effective appraisal system can contribute to competitive advantage by improving employee job performance.
    Reason (R): One serious challenge facing the performance appraisal relates to assessment of self-managed teams.

    In the light of the above statements, choose the most appropriate answer from the options given below :

    1. ABoth (A) and (R) are correct and (R) is the correct explanation of (A)
    2. BBoth (A) and (R) are correct but (R) is not the correct explanation of (A)
    3. C(A) is correct but (R) is not correct
    4. D(A) is not correct but (R) is correct

    Answer: (B) Both (A) and (R) are correct but (R) is not the correct explanation of (A)

    Explanation

    Performance appraisal provides strategic organizational value while confronting modern teamwork challenges.

    • Assertion (A) is correct. Rigorous appraisals boost performance through targeted development and aligned incentive structures.
    • Reason (R) is correct. Assessing individual contributions within autonomous, self-managed teams presents a well-recognized modern appraisal obstacle.

    While both statements are accurate, an assessment challenge in teams does not explain how effective appraisal generates competitive advantage.

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64. Question 64

    A, B and C were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. A died on September 15, 2025. At that time, the capitals of B and C after all the adjustments were ₹ 3,56,000 and ₹ 2,44,000 respectively. B and C decided to adjust their capitals according to their new profit sharing ratio by opening current accounts. The new capital of B is :

    1. A₹ 1,33,333
    2. B₹ 2,00,000
    3. C₹ 2,40,000
    4. D₹ 3,60,000

    Answer: (D) ₹ 3,60,000

    Explanation

    Capital realignment among continuing partners uses their revised profit sharing ratio:

    Total combined capital of continuing partners:
    Total Capital = 3,56,000 + 2,44,000 = ₹ 6,00,000

    Upon death of A, the remaining ratio between B and C becomes 3 : 2.

    New capital of B:
    Capital of B = 6,00,000 * (3 / 5) = ₹ 3,60,000

    New capital of C equals 6,00,000 * (2 / 5) = ₹ 2,40,000.

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65. Question 65

    If the first quartile is 48 and quartile deviation is 6, the value of median assuming the distribution to be symmetrical is :

    1. A50
    2. B52
    3. C54
    4. D56

    Answer: (C) 54

    Explanation

    In a symmetrical frequency distribution, quartiles are equidistant from the median:

    Median - Q1 = Q3 - Median = Quartile Deviation

    Median = Q1 + Quartile Deviation
    Median = 48 + 6 = 54

    Upper quartile Q3 equals 54 + 6 = 60, confirming Quartile Deviation = (60 - 48) / 2 = 6.

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66. Question 66

    Match List - I with List - II.

    List - I	List - II
    A. Highest Reach	I. Publicity
    B. Most Persuasive	II. Advertising
    C. Immediate Effect on Sales	III. Personal Selling
    D. No Cost Involved	IV. Sales Promotion

    1. AA-I, B-II, C-III, D-IV
    2. BA-II, B-I, C-III, D-IV
    3. CA-II, B-III, C-IV, D-I
    4. DA-IV, B-I, C-II, D-III

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

    Explanation

    Promotional mix elements match these primary operational characteristics:

    A-II, B-III, C-IV, D-I

    • A. Highest Reach — Advertising achieves mass market coverage through broadcast and print media.
    • B. Most Persuasive — Personal Selling provides interactive interpersonal dialogue tailored to objections.
    • C. Immediate Effect on Sales — Sales Promotion provides short-term incentives inducing prompt customer response.
    • D. No Cost Involved — Publicity secures media coverage without paid sponsorship outlays.

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67. Question 67

    Arrange the following steps of Control Process in the correct order :
    A. Measurement of Actual Performance
    B. Establishment of Standards
    C. Corrective action where required
    D. Comparison of actual performance with the standards
    Choose the correct answer from the options given below :

    1. AB, A, C, D
    2. BB, A, D, C
    3. CA, B, C, D
    4. DA, B, D, C

    Answer: (B) B, A, D, C

    Explanation

    The managerial control function follows this sequential feedback loop:

    B -> A -> D -> C

    • B. Establishment of Standards — setting target performance benchmarks.
    • A. Measurement of Actual Performance — tracking observed operational results.
    • D. Comparison of actual performance with standards — identifying deviation magnitude and significance.
    • C. Corrective action where required — taking remedial steps to rectify operational shortfalls.

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68. Question 68

    An assessee who declares his business/professional income in accordance with the provisions of Section 44 AD(1) or Section 44 ADA(1), must pay up to 100 percent of advance tax payable on or before :

    1. ADecember 15 of the previous year
    2. BJanuary 15 of the previous year
    3. CFebruary 15 of the previous year
    4. DMarch 15 of the previous year

    Answer: (D) March 15 of the previous year

    Explanation

    Section 211 of the Income Tax Act provides special advance tax installment rules for presumptive taxation.

    • Assessees declaring income under Section 44AD or Section 44ADA are exempt from four-quarter advance tax installments.
    • They are required to pay the entire hundred percent of advance tax in one single installment on or before March 15 of the relevant financial year.

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69. Question 69

    Assertion (A): Filter questions in questionnaire measure the familiarity of the respondents with the topic of research.
    Reason (R): Questions that try to capture multiple information at once are referred to as leading questions.

    In the light of the above statements, choose the most appropriate answer from the options given below :

    1. ABoth (A) and (R) are correct and (R) is the correct explanation of (A)
    2. BBoth (A) and (R) are correct but (R) is not the correct explanation of (A)
    3. C(A) is correct but (R) is not correct
    4. D(A) is not correct but (R) is correct

    Answer: (C) (A) is correct but (R) is not correct

    Explanation

    Survey design principles distinguish filter questions from flawed question structures.

    • Assertion (A) is correct. Filter questions screen respondents based on experience and topic familiarity before administering detailed modules.
    • Reason (R) is incorrect. Inquiring about multiple issues in a single question defines a double-barrelled question, whereas a leading question biases the respondent toward a particular answer.

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70. Question 70

    According to Walter’s Model of Dividend, market value of the share of a declining firm (having r < ke) will be maximum at :

    1. A0% Dividend Payout
    2. B100% Dividend Payout
    3. C50% Dividend Payout
    4. D75% Dividend Payout

    Answer: (B) 100% Dividend Payout

    Explanation

    James Walter dividend model determines share valuation using return on investment r and cost of equity ke.

    • For a declining firm where internal return is less than cost of equity (r < ke), reinvested funds earn less than market opportunity rates.
    • Retaining earnings diminishes shareholder wealth, whereas distributing hundred percent of earnings as dividends maximizes share value.
    • Conversely, growth firms (r > ke) maximize market value with a zero percent dividend payout.

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71. Question 71

    Which one of the followings is not an external technique of Foreign Exchange Risk Management ?

    1. AForward Contracts
    2. BCurrency Futures
    3. CNetting
    4. DSwaps

    Answer: (C) Netting

    Explanation

    Treasury risk management distinguishes internal operational hedges from external financial market derivatives.

    • Internal techniques — organizational practices such as Netting, Matching, Leading and Lagging, and Currency invoicing.
    • External techniques — contractual financial instruments including Forward contracts, Currency Futures, and Currency Swaps.

    Netting consolidates inter-affiliate balances internally and does not utilize external third-party market contracts.

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72. Question 72

    Under which of the following, a firm well publicized changes in price and price changes are generally followed by the rival firms. This kind of price leadership may not necessarily come from the largest firm of the industry.

    1. ABiometric Price Leadership
    2. BBarometric Price Leadership
    3. CPrice Leadership by low cost firm
    4. DPrice Leadership by dominant firm

    Answer: (B) Barometric Price Leadership

    Explanation

    Barometric price leadership arises when an astute firm senses macroeconomic market shifts and adjusts prices accordingly.

    • Barometric Price Leadership — an experienced or sensitive firm acts as a barometer of market conditions, leading price adjustments followed by rivals regardless of firm size.
    • Dominant firm price leadership — the largest industry player with substantial market share dictates prices.
    • Low-cost firm price leadership — the producer with lowest cost curves sets the floor price.
    • Biometric leadership — non-existent concept in pricing economics.

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73. Question 73

    Arrange the following types of motivating needs as identified by Maslow in ascending order :
    A. Physiological Needs
    B. Social Needs
    C. Self-actualization Needs
    D. Safety Needs
    E. Esteem Needs
    Choose the correct answer from the options given below :

    1. AA, D, B, C, E
    2. BA, D, B, E, C
    3. CA, B, D, E, C
    4. DA, B, C, D, E

    Answer: (B) A, D, B, E, C

    Explanation

    Abraham Maslow hierarchy of needs arranges human motivations in this ascending order from fundamental to highest:

    A -> D -> B -> E -> C

    • A. Physiological Needs — basic physical survival necessities like food and shelter.
    • D. Safety Needs — security, protection, and stability.
    • B. Social Needs — affection, belongingness, and peer relationships.
    • E. Esteem Needs — self-respect, autonomy, status, and recognition.
    • C. Self-actualization Needs — personal growth and realization of one full potential.

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74. Question 74

    Arrange the following steps of research process in correct order :
    A. Developing an approach to the problem
    B. Problem definition
    C. Data Collection, Preparation and analysis
    D. Research design formulation
    E. Report writing and presentation
    Choose the correct answer from the options given below :

    1. AA, B, C, D, E
    2. BB, A, D, C, E
    3. CD, B, A, E, C
    4. DA, B, D, E, C

    Answer: (B) B, A, D, C, E

    Explanation

    The scientific business research process advances through these sequential phases:

    B -> A -> D -> C -> E

    • B. Problem definition — framing management dilemmas and research objectives.
    • A. Developing an approach to the problem — theoretical foundations and hypothesis development.
    • D. Research design formulation — selecting exploratory, descriptive, or causal research frameworks.
    • C. Data Collection, Preparation and analysis — gathering fieldwork data and statistical processing.
    • E. Report writing and presentation — documenting conclusions and executive recommendations.

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75. Question 75

    Assertion (A): RTGS system is a funds transfer mechanism where transfer of money takes place from one bank to another on a real time and on gross basis.
    Reason (R): There is no minimum ceiling for the RTGS transactions.

    In the light of the above statements, choose the most appropriate answer from the options given below :

    1. ABoth (A) and (R) are correct and (R) is the correct explanation of (A)
    2. BBoth (A) and (R) are correct but (R) is not the correct explanation of (A)
    3. C(A) is correct but (R) is not correct
    4. D(A) is not correct but (R) is correct

    Answer: (C) (A) is correct but (R) is not correct

    Explanation

    Reserve Bank of India RTGS infrastructure handles large-value interbank fund settlements.

    • Assertion (A) is correct. Real Time Gross Settlement processes payments continuously without netting individual transactions.
    • Reason (R) is incorrect. RBI mandates a statutory minimum threshold of two lakh rupees for RTGS transfers, meaning a minimum floor does exist.

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76. Question 76

    Which of the following is a measure of relative risk and is calculated by dividing the standard deviation by its expected value ?

    1. AVariance
    2. BCoefficient of Variance
    3. CCo-Variance
    4. DGeometric Mean

    Answer: (B) Coefficient of Variance

    Explanation

    The Coefficient of Variation measures relative dispersion by expressing standard deviation as a proportion of the mean:

    CV = Standard Deviation / Expected Value

    • A. Variance — absolute measure of dispersion representing the squared standard deviation.
    • B. Coefficient of Variance — normalized relative risk metric that standardizes risk per unit of expected return.
    • C. Co-Variance — measure of directional joint variability between two random variables.
    • D. Geometric Mean — measure of central tendency for rates of growth and compounded percentages.

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77. Question 77

    Which of the followings are properties of Normal Distribution ?
    A. The normal curve approaches the x-axis asymptotically as we proceed in either direction away from the mean.
    B. The normal curve has its points of inflection at X̄ ± 2σ
    C. Irrespective of the shape, the total area under the normal curve and above the horizontal axis is always equal to 1.
    D. About 68.27% of the total area under the normal curve is covered from μ−2σ to μ+2σ.
    E. The normal distribution is unimodal.
    Choose the correct answer from the options given below :

    1. AA, B and E Only
    2. BB, C and D Only
    3. CC, D and E Only
    4. DA, C and E Only

    Answer: (D) A, C and E Only

    Explanation

    The standard normal distribution exhibits well-defined mathematical properties:

    • Statement A is correct — tails of the bell-shaped curve approach the horizontal x-axis asymptotically at both extremes.
    • Statement B is incorrect — inflection points occur at mu +- sigma, not at +- 2 sigma.
    • Statement C is correct — total probability density area under the entire normal curve equals exactly 1.0.
    • Statement D is incorrect — interval mu +- sigma covers 68.27% of area, whereas mu +- 2 sigma covers 95.45% of total area.
    • Statement E is correct — the normal curve has a single peak at the mean, making it unimodal.

    Thus, statements A, C, and E are the valid properties.

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78. Question 78

    Match List - I with List - II.

    List - I	List - II
    A. Managerial Grid	I. Charles Bird
    B. Hawthorne Experiments	II. Alderfer
    C. Trait Theory	III. Blake and Mouton
    D. ERG Theory	IV. Elton Mayo

    1. AA-I, B-II, C-III, D-IV
    2. BA-III, B-IV, C-I, D-II
    3. CA-I, B-III, C-II, D-IV
    4. DA-III, B-IV, C-II, D-I

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

    Explanation

    Management and organizational behavior theories map directly to their landmark propounders:

    A-III, B-IV, C-I, D-II

    • A. Managerial Grid — Robert Blake and Jane Mouton developed the 9x9 grid charting concern for production versus concern for people.
    • B. Hawthorne Experiments — Elton Mayo and Fritz Roethlisberger conducted the Western Electric studies pioneering the human relations movement.
    • C. Trait Theory — Charles Bird conducted foundational synthesis of leadership traits in early organizational psychology.
    • D. ERG Theory — Clayton Alderfer reorganized Maslow hierarchy into Existence, Relatedness, and Growth categories.

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79. Question 79

    A possible cost of FDI to the host country is :

    1. AEmployment opportunities may increase in the short run but long run competitiveness will be reduced.
    2. BTechnology transfer always leads to dependency and no local innovation gets encouraged.
    3. CRepatriation of profits may lead to capital outflows.
    4. DFDI inflows always worsen the host country's BoP position.

    Answer: (C) Repatriation of profits may lead to capital outflows.

    Explanation

    Outward remittance of earnings creates long-term balance of payments pressures for FDI host economies.

    • A. Long run competitiveness reduced — overly broad because positive spillover effects routinely boost domestic industry competitiveness.
    • B. Always leads to dependency — incorrect generalization because joint ventures frequently spur local technological capability.
    • C. Repatriation of profits causes capital outflows — correct. Multinational corporations repatriating dividends and management fees generate substantial foreign exchange drains.
    • D. FDI always worsens BoP — incorrect because initial capital inflows strengthen the financial account.

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80. Question 80

    The probability that a leap year selected at random contains either 53 Sundays or 53 Mondays is :

    1. A1/7
    2. B2/7
    3. C3/7
    4. D4/7

    Answer: (C) 3/7

    Explanation

    A leap year has 366 days, comprising 52 complete weeks plus two extra consecutive days.

    Sample space of seven equally likely consecutive day pairs:
    {(Sun, Mon), (Mon, Tue), (Tue, Wed), (Wed, Thu), (Thu, Fri), (Fri, Sat), (Sat, Sun)}

    Favourable outcomes containing either Sunday or Monday:

    • (Sat, Sun) contains Sunday
    • (Sun, Mon) contains both Sunday and Monday
    • (Mon, Tue) contains Monday

    Total favourable outcomes = 3
    Probability = 3 / 7

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81. Question 81

    Assertion (A): A gentlemen died leaving a young widow. The relatives of the deceased threatened the widow to adopt a boy otherwise they would not allow her to remove the dead body of her husband for cremation. The widow adopted the boy.
    Reason (R): The widow subsequently cancelled the adoption. The court held her consent was not free due to coercion.

    In the light of the above statements, choose the most appropriate answer from the options given below :

    1. ABoth (A) and (R) are correct and (R) is the correct explanation of (A)
    2. BBoth (A) and (R) are correct but (R) is not the correct explanation of (A)
    3. C(A) is correct but (R) is not correct
    4. D(A) is not correct but (R) is correct

    Answer: (A) Both (A) and (R) are correct and (R) is the correct explanation of (A)

    Explanation

    This factual scenario derives from the landmark contract law precedent Ranganayakamma v. Alwar Setti (1889).

    • Assertion (A) is correct. Relatives obstructed cremation of the deceased husband corpse until the grieving widow executed an adoption deed.
    • Reason (R) is correct. The court set aside the adoption, ruling that obstructing burial rites constituted an unlawful act under the penal code and amounted to coercion under Section 15 of the Indian Contract Act.

    The judicial finding of coercion in Reason directly explains why the coerced transaction in Assertion was legally invalid.

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82. Question 82

    Match List - I with List - II.

    List - I (Theories of Profit)	List - II (Propounders)
    A. Risk theory of Profit	I. Joseph A Schumpeter
    B. Dynamic theory of Profit	II. F. A. Walker
    C. Innovation theory of Profit	III. F. B. Hawley
    D. Profit as rent of ability	IV. J. B. Clark

    1. AA-III, B-II, C-I, D-IV
    2. BA-III, B-IV, C-I, D-II
    3. CA-II, B-III, C-I, D-IV
    4. DA-IV, B-II, C-I, D-III

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

    Explanation

    Economic theories of entrepreneurial profit match their respective economists as follows:

    A-III, B-IV, C-I, D-II

    • A. Risk theory of Profit — F. B. Hawley conceptualized profit as the reward for assuming uninsurable business risks.
    • B. Dynamic theory of Profit — J. B. Clark argued that profits arise only in dynamic societies experiencing technological and demand changes.
    • C. Innovation theory of Profit — Joseph Schumpeter viewed profit as a transitory surplus generated by entrepreneurial innovations.
    • D. Profit as rent of ability — F. A. Walker formulated profit as economic rent accruing to superior entrepreneurial talent.

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83. Question 83

    Which of the followings are the approaches of determining the financing mix for working capital :
    A. Matching Approach
    B. Conservative Approach
    C. Operating Cycle Approach
    D. Aggressive Approach
    Choose the correct answer from the options given below :

    1. AB, C and D Only
    2. BA, B and D Only
    3. CA, C and D Only
    4. DA, B and C Only

    Answer: (B) A, B and D Only

    Explanation

    Corporate working capital financing strategy recognizes three recognized approaches for funding current assets:

    • A. Matching Approach (Hedging) — finances fixed assets and permanent current assets with long-term funds, and temporary current assets with short-term credit.
    • B. Conservative Approach — finances all permanent assets and a portion of temporary current assets with long-term debt or equity.
    • D. Aggressive Approach — finances all temporary current assets and part of permanent current assets with cheaper short-term borrowing.

    The Operating Cycle Approach is an estimation technique for determining working capital requirements rather than a financing mix strategy.

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84. Question 84

    Assertion (A): Minority interest is that part of the net assets of a subsidiary attributable to interest which is held by outsiders.
    Reason (R): Minority interest should be presented in the consolidated balance sheet as a part of equity of the parent’s shareholders.

    In the light of the above statements, choose the most appropriate answer from the options given below :

    1. ABoth (A) and (R) are correct and (R) is the correct explanation of (A)
    2. BBoth (A) and (R) are correct but (R) is not the correct explanation of (A)
    3. C(A) is correct but (R) is not correct
    4. D(A) is not correct but (R) is correct

    Answer: (C) (A) is correct but (R) is not correct

    Explanation

    Accounting standards dictate specific disclosure rules for non-controlling interests in consolidated financial statements.

    • Assertion (A) is correct. Minority interest represents the proportion of net identifiable assets of a subsidiary held by third-party external shareholders.
    • Reason (R) is incorrect. Under Ind AS 110, non-controlling interest must be presented within total equity, but strictly separately from the equity of the owners of the parent company.

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85. Question 85

    Which of the following types of audit report is issued when the auditor concludes that the financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework ?

    1. AAudit report with an ‘emphasis of matter’ paragraph
    2. BQualified report
    3. CDisclaimer of opinion report
    4. DUnmodified opinion report

    Answer: (D) Unmodified opinion report

    Explanation

    Standard on Auditing SA 700 defines the forms of opinion rendered by an independent statutory auditor.

    • A. Emphasis of matter — added to draw user attention to matters already disclosed without modifying the audit opinion.
    • B. Qualified report — issued when material misstatements exist that are not pervasive.
    • C. Disclaimer of opinion — issued when auditor cannot obtain sufficient evidence and potential effects are material and pervasive.
    • D. Unmodified opinion report — clean opinion issued when financial statements give a true and fair view in conformity with financial reporting standards.

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86. Question 86

    Match List - I with List - II.

    List - I	List - II
    A. NPV	I. Which equates the aggregate present value of the net cash Inflows with the aggregate present value of cash outflows.
    B. IRR	II. Dividing the average annual profit after tax by average investment over the life of the project.
    C. ARR	III. Summation of the present values of cash proceeds in each year minus the summation of the present values of the net cash outflow in each year.
    D. PI	IV. Dividing the present value of future cash inflow by the present value of cash outflow.

    1. AA-I, B-III, C-II, D-IV
    2. BA-III, B-II, C-IV, D-I
    3. CA-III, B-I, C-II, D-IV
    4. DA-I, B-II, C-III, D-IV

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

    Explanation

    Capital budgeting criteria match their respective computational definitions:

    A-III, B-I, C-II, D-IV

    • A. NPV — present value of future cash inflows minus present value of initial and recurring cash outflows.
    • B. IRR — internal discount rate that equates the present value of cash inflows with the present value of cash outflows.
    • C. ARR — average annual profit after tax divided by average project investment.
    • D. PI — present value of future cash inflows divided by present value of cash outflows.

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87. Question 87

    Which of the followings is not valid for ordinal school of consumer preferences ?

    1. AConsumer preferences can be plotted on an indifference curve
    2. BRanking of Utility is important
    3. CMagnitude of Utility is important
    4. DUtility is not additive

    Answer: (C) Magnitude of Utility is important

    Explanation

    The ordinal utility paradigm of Hicks and Allen assumes utility is an ordinal ranking rather than a cardinal quantity.

    • Indifference curves — graphical tool mapping bundles that provide identical satisfaction.
    • Ranking of utility — consumers order combinations into first, second, and third preferences.
    • Utility not additive — utility across distinct goods cannot be algebraically summed into utils.
    • Magnitude of utility — measuring cardinal numerical intensity belongs to Marshallian cardinal utility theory, not ordinal analysis.

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88. Question 88

    Arm's length price as per section 92 F of the Income Tax Act is the price applied or proposed to be applied when :

    1. Atwo related persons enter into a transaction in uncontrolled conditions.
    2. Btwo unrelated persons enter into a transaction in controlled conditions.
    3. Ctwo related persons enter into a transaction in controlled conditions.
    4. Dtwo unrelated persons enter into a transaction in uncontrolled conditions.

    Answer: (D) two unrelated persons enter into a transaction in uncontrolled conditions.

    Explanation

    Section 92F(ii) of the Income Tax Act defines arm length price for transfer pricing purposes:

    • Arm length price is the price applied or proposed to be applied in a transaction between persons other than associated enterprises, in uncontrolled conditions.
    • Persons other than associated enterprises are unrelated independent entities.
    • An uncontrolled transaction occurs under open-market competitive circumstances free from mutual control or influence.

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89. Question 89

    Match List - I with List - II.

    List - I	List - II
    A. EXIM Bank	I. Advancing Credit for agriculture and other economic activities in rural area
    B. NHB	II. Financing Exports and Imports
    C. IDBI	III. Promoting Housing Finance Institution
    D. NABARD	IV. Financing, Promoting and Developing industries

    1. AA-I, B-II, C-III, D-IV
    2. BA-II, B-I, C-IV, D-III
    3. CA-II, B-III, C-IV, D-I
    4. DA-II, B-III, C-I, D-IV

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

    Explanation

    Development financial institutions in India specialize in designated economic sectors:

    A-II, B-III, C-IV, D-I

    • A. EXIM Bank — provides direct credit and guarantees for promoting foreign trade exports and imports.
    • B. NHB — National Housing Bank acts as apex financial institution promoting housing finance companies.
    • C. IDBI — Industrial Development Bank of India established for financing and developing industrial enterprises.
    • D. NABARD — National Bank for Agriculture and Rural Development finances rural credit and agriculture.

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90. Question 90

    Identify the correct equation of Cobb-Douglas production function :

    1. AQ = A + LᵅKᵝ
    2. BQ = A × LᵅKᵝ
    3. CQ = A ÷ LᵅKᵝ
    4. DQ = A − LᵅKᵝ

    Answer: (B) Q = A × LᵅKᵝ

    Explanation

    The Cobb-Douglas production function models production output as a multiplicative power function:

    Q = A * L^alpha * K^beta

    • Q represents aggregate volume of physical output produced.
    • A represents total factor productivity index.
    • L and K represent physical inputs of labour and capital.
    • alpha and beta denote output elasticities with respect to labour and capital respectively.

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91. Question 91

    The certificate of incorporation of ABC is :

    An application was sent to registrar of companies to obtain the certificate of incorporation on 30 June 2024. One of the promotors, Raj, made the allotment of shares of the company on 28 June 2024. He also made a contract to buy a certain machinery from Pooja by representing himself as an agent of the company on 20 June 2024.

    Raj also signed the Memorandum of Association (MOA) of the company on behalf of all seven members to obtain the certificate of incorporation.

    Inspite of all these, the certificate of incorporation was issued in respect of ABC company but wrongly dated as 25 June 2024.

    After sometimes, it is also found that two of the members out of seven members named in MOA were minors.

    He also entered into a contract after the incorporation of company to buy a building from Prakash for Rs. 1,00,00,000 but before obtaining the certificate of commencement of business.

    1. AVoid as it is obtained by forged document
    2. BVoid as it is obtained by including minor promotors
    3. CValid, even if irregular, cannot be cancelled
    4. DValid, but from 30th June 2024 and not from 25th June

    Answer: (C) Valid, even if irregular, cannot be cancelled

    Explanation

    Under company law, a Certificate of Incorporation serves as conclusive evidence of corporate existence.

    • As established in Moosa Goolam Ariff v. Ebrahim Goolam Ariff, once the Registrar issues the certificate, it cannot be challenged on grounds of pre-incorporation defects.
    • Minor signatories, forged documents, or procedural irregularities do not render the certificate void or revocable.
    • The corporate entity comes into lawful existence from the date mentioned in the certificate.

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92. Question 92

    Which of the followings is correct ?

    An application was sent to registrar of companies to obtain the certificate of incorporation on 30 June 2024. One of the promotors, Raj, made the allotment of shares of the company on 28 June 2024. He also made a contract to buy a certain machinery from Pooja by representing himself as an agent of the company on 20 June 2024.

    Raj also signed the Memorandum of Association (MOA) of the company on behalf of all seven members to obtain the certificate of incorporation.

    Inspite of all these, the certificate of incorporation was issued in respect of ABC company but wrongly dated as 25 June 2024.

    After sometimes, it is also found that two of the members out of seven members named in MOA were minors.

    He also entered into a contract after the incorporation of company to buy a building from Prakash for Rs. 1,00,00,000 but before obtaining the certificate of commencement of business.

    1. APooja can claim payment of machinery from the company as Raj acted on behalf of the company.
    2. BPooja can claim the payment from Raj, who will be personally liable as she is considering that it is a provisional contract.
    3. CRaj will be personally liable as for all pre-incorporation contracts, promotors are personally liable
    4. DRaj will not be liable as the machinery was used by the company not by Raj for his personal benefits.

    Answer: (C) Raj will be personally liable as for all pre-incorporation contracts, promotors are personally liable

    Explanation

    A company does not legally exist prior to incorporation and cannot have agents acting on its behalf.

    • Contracts entered into by promoters before corporate creation are pre-incorporation contracts governed by the principle in Kelner v. Baxter.
    • The company is not bound by pre-incorporation commitments made by promoters.
    • The promoter remains personally liable on such agreements unless statutory adoption or novation occurs.

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93. Question 93

    The allotment of shares was challenged as it was done before sending the application to the Registrar of Companies. Choose the correct answer :

    An application was sent to registrar of companies to obtain the certificate of incorporation on 30 June 2024. One of the promotors, Raj, made the allotment of shares of the company on 28 June 2024. He also made a contract to buy a certain machinery from Pooja by representing himself as an agent of the company on 20 June 2024.

    Raj also signed the Memorandum of Association (MOA) of the company on behalf of all seven members to obtain the certificate of incorporation.

    Inspite of all these, the certificate of incorporation was issued in respect of ABC company but wrongly dated as 25 June 2024.

    After sometimes, it is also found that two of the members out of seven members named in MOA were minors.

    He also entered into a contract after the incorporation of company to buy a building from Prakash for Rs. 1,00,00,000 but before obtaining the certificate of commencement of business.

    1. AThe allotment of shares is void as the certificate of incorporation is not valid
    2. BThe allotment of shares is valid as it is made after obtaining the certificate of incorporation
    3. CThe allotment of shares is void as application to obtain certificate was sent on 30th June
    4. DThe allotment of shares is void as the certificate was obtained by forged document

    Answer: (B) The allotment of shares is valid as it is made after obtaining the certificate of incorporation

    Explanation

    The date appearing on the Certificate of Incorporation is conclusive proof of the legal incorporation date.

    • In Jubilee Cotton Mills Ltd. v. Lewis, shares were allotted prior to physical issuance of the certificate but on or after the certificate date.
    • Because the certificate was dated 25 June 2024, the company was legally deemed to exist on that date.
    • Consequently, the share allotment made on 28 June 2024 is legally valid because it took place after the effective incorporation date stated on the certificate.

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94. Question 94

    The contract to buy a building from Prakash for ₹ 1,00,00,000 will be called :

    An application was sent to registrar of companies to obtain the certificate of incorporation on 30 June 2024. One of the promotors, Raj, made the allotment of shares of the company on 28 June 2024. He also made a contract to buy a certain machinery from Pooja by representing himself as an agent of the company on 20 June 2024.

    Raj also signed the Memorandum of Association (MOA) of the company on behalf of all seven members to obtain the certificate of incorporation.

    Inspite of all these, the certificate of incorporation was issued in respect of ABC company but wrongly dated as 25 June 2024.

    After sometimes, it is also found that two of the members out of seven members named in MOA were minors.

    He also entered into a contract after the incorporation of company to buy a building from Prakash for Rs. 1,00,00,000 but before obtaining the certificate of commencement of business.

    1. APre-incorporation Contract
    2. BProvisional Contract
    3. CPreliminary Contract
    4. DVoid Contract

    Answer: (B) Provisional Contract

    Explanation

    Agreements entered into by a company post-incorporation but before receiving the business commencement certificate are provisional contracts.

    • A. Pre-incorporation Contract — contract entered into by promoters prior to the grant of certificate of incorporation.
    • B. Provisional Contract — contract executed between incorporation and receipt of commencement certificate, becoming fully binding only upon certification.
    • C. Preliminary Contract — synonym for pre-incorporation agreements executed before legal corporate existence.
    • D. Void Contract — contract with illegal object or unenforceable at law.

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95. Question 95

    The contract made with Pooja on 20 June 2024 will be called :

    An application was sent to registrar of companies to obtain the certificate of incorporation on 30 June 2024. One of the promotors, Raj, made the allotment of shares of the company on 28 June 2024. He also made a contract to buy a certain machinery from Pooja by representing himself as an agent of the company on 20 June 2024.

    Raj also signed the Memorandum of Association (MOA) of the company on behalf of all seven members to obtain the certificate of incorporation.

    Inspite of all these, the certificate of incorporation was issued in respect of ABC company but wrongly dated as 25 June 2024.

    After sometimes, it is also found that two of the members out of seven members named in MOA were minors.

    He also entered into a contract after the incorporation of company to buy a building from Prakash for Rs. 1,00,00,000 but before obtaining the certificate of commencement of business.

    1. APre-incorporation Contract
    2. BProvisional Contract
    3. CPreliminary Contract
    4. DStandard Contract

    Accepted answers: (A) Pre-incorporation Contract, (C) Preliminary Contract

    Explanation

    Contracts entered into by promoters prior to the legal incorporation of the company are pre-incorporation contracts.

    • In corporate law terminology, agreements negotiated before the certificate of incorporation is granted are interchangeably referred to as pre-incorporation contracts or preliminary contracts.
    • Provisional contracts describe agreements executed after incorporation but before obtaining the certificate of commencement of business.
    • Both Option A and Option C accurately describe contracts executed by promoters on June 20 before incorporation.

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96. Question 96

    By selling through online platforms, retail stores and direct sales agents, Ecofresh is focusing on :

    Ecofresh Pvt. Ltd, a startup in India, produces eco-friendly home cleaning products such as liquid detergents, floor cleaners and dishwashing liquids. The company follows a green marketing approach and highlights its products as biodegradable, safe and affordable.

    To reach its customers, Ecofresh sells through online platforms, retail stores and direct sales agents. The firm has designed its marketing mix carefully. Pricing is slightly above competitors due to its ecofriendly positioning but promotions include digital campaigns, social media advertising and discounts on bulk purchases.

    Recently Ecofresh launched a new product; a herbal air freshener. During its product life cycle’s introduction stage, the firm invested heavily in promotion and awareness building activities. The company also engages in customer relationship management by offering loyalty points and personalised recommendation to repeat buyers.

    1. APricing Strategies
    2. BPromotional Mix
    3. CService Marketing
    4. DMulti Channel distribution

    Answer: (D) Multi Channel distribution

    Explanation

    Reaching target consumers through multiple marketing intermediaries characterizes multi-channel distribution.

    • Pricing Strategies — decisions regarding market skimming, penetration, and volume discounting.
    • Promotional Mix — blended communications encompassing advertising, PR, and personal selling.
    • Service Marketing — strategies targeting intangible offerings with high customer coproduction.
    • Multi Channel distribution — utilizing several integrated channels, such as e-commerce platforms, brick-and-mortar stores, and direct agents.

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97. Question 97

    Ecofresh use of digital campaigns, social media and discounts reflects decisions related to :

    Ecofresh Pvt. Ltd, a startup in India, produces eco-friendly home cleaning products such as liquid detergents, floor cleaners and dishwashing liquids. The company follows a green marketing approach and highlights its products as biodegradable, safe and affordable.

    To reach its customers, Ecofresh sells through online platforms, retail stores and direct sales agents. The firm has designed its marketing mix carefully. Pricing is slightly above competitors due to its ecofriendly positioning but promotions include digital campaigns, social media advertising and discounts on bulk purchases.

    Recently Ecofresh launched a new product; a herbal air freshener. During its product life cycle’s introduction stage, the firm invested heavily in promotion and awareness building activities. The company also engages in customer relationship management by offering loyalty points and personalised recommendation to repeat buyers.

    1. ADistribution Mix
    2. BPromotion Mix
    3. CProduct Mix
    4. DPricing Policy

    Answer: (B) Promotion Mix

    Explanation

    Digital campaigns, social media advertising, and promotional discounts are components of the promotion mix.

    • Distribution Mix — logistical decisions covering transportation, warehousing, and channel partners.
    • Promotion Mix — marketing communications tools designed to inform, persuade, and remind target buyers.
    • Product Mix — assortment, branding, packaging, and product lifecycle management.
    • Pricing Policy — setting list prices, credit terms, and standard trade margins.

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98. Question 98

    The launch of herbal air freshener during its introduction stage of the product life cycle primarily requires heavy investment in promotion and awareness building activity. It will lead to (in short run) :

    Ecofresh Pvt. Ltd, a startup in India, produces eco-friendly home cleaning products such as liquid detergents, floor cleaners and dishwashing liquids. The company follows a green marketing approach and highlights its products as biodegradable, safe and affordable.

    To reach its customers, Ecofresh sells through online platforms, retail stores and direct sales agents. The firm has designed its marketing mix carefully. Pricing is slightly above competitors due to its ecofriendly positioning but promotions include digital campaigns, social media advertising and discounts on bulk purchases.

    Recently Ecofresh launched a new product; a herbal air freshener. During its product life cycle’s introduction stage, the firm invested heavily in promotion and awareness building activities. The company also engages in customer relationship management by offering loyalty points and personalised recommendation to repeat buyers.

    1. AHigh Profit
    2. BLow/Negative Profit
    3. CHigh Revenue, low cost
    4. DHigh Revenue, High cost

    Answer: (B) Low/Negative Profit

    Explanation

    During the introduction phase of the product life cycle, profits are characteristically low or negative.

    • Sales volume during market launch grows gradually as consumer awareness is established.
    • Promotional outlays and distribution setup costs are highest during introduction.
    • Substantial front-loaded marketing expenditure combined with limited initial revenue results in depressed or negative short-run profitability.

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99. Question 99

    The use of loyalty points is an example of :

    Ecofresh Pvt. Ltd, a startup in India, produces eco-friendly home cleaning products such as liquid detergents, floor cleaners and dishwashing liquids. The company follows a green marketing approach and highlights its products as biodegradable, safe and affordable.

    To reach its customers, Ecofresh sells through online platforms, retail stores and direct sales agents. The firm has designed its marketing mix carefully. Pricing is slightly above competitors due to its ecofriendly positioning but promotions include digital campaigns, social media advertising and discounts on bulk purchases.

    Recently Ecofresh launched a new product; a herbal air freshener. During its product life cycle’s introduction stage, the firm invested heavily in promotion and awareness building activities. The company also engages in customer relationship management by offering loyalty points and personalised recommendation to repeat buyers.

    1. AAdvertising
    2. BSales Promotion
    3. CPersonal Selling
    4. DSponsorship

    Answer: (B) Sales Promotion

    Explanation

    Loyalty programs and purchase reward points constitute sales promotion tools.

    • Advertising — non-personal paid mass media communication.
    • Sales Promotion — short-term and recurring consumer incentives designed to encourage repeated purchasing behavior.
    • Personal Selling — face-to-face customized communication between sales representatives and buyers.
    • Sponsorship — supporting cultural, sporting, or community events to enhance brand visibility.

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100. Question 100

     Ecofresh's emphasis on biodegradable safe product reflects which marketing approach ?

     Ecofresh Pvt. Ltd, a startup in India, produces eco-friendly home cleaning products such as liquid detergents, floor cleaners and dishwashing liquids. The company follows a green marketing approach and highlights its products as biodegradable, safe and affordable.

     To reach its customers, Ecofresh sells through online platforms, retail stores and direct sales agents. The firm has designed its marketing mix carefully. Pricing is slightly above competitors due to its ecofriendly positioning but promotions include digital campaigns, social media advertising and discounts on bulk purchases.

     Recently Ecofresh launched a new product; a herbal air freshener. During its product life cycle’s introduction stage, the firm invested heavily in promotion and awareness building activities. The company also engages in customer relationship management by offering loyalty points and personalised recommendation to repeat buyers.

     1. AProduction approach
     2. BSelling approach
     3. CSocietal marketing approach
     4. DProduct approach

     Answer: (C) Societal marketing approach

     Explanation

     Balancing consumer satisfaction, business profit, and long-term ecological well-being exemplifies the societal marketing concept.

     • Production approach — emphasizes manufacturing efficiency and widespread low-cost distribution.
     • Selling approach — relies on aggressive promotional push and hard selling.
     • Societal marketing approach — prioritizes environmental preservation, consumer welfare, and societal health alongside profitability.
     • Product approach — focuses narrowly on continuous product engineering improvements regardless of market demand.

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