NTA UGC NET/JRF Exam, Dec. 2021/June 2022 (Commerce) Shift-I

Total Questions: 100

91. Read the following paragraph and answer the five questions that follow :

The Cabinet approval for seven integrated mega textile and apparel parks pan-India makes eminent sense. It would boost value addition on-site, reaping economies of scale and scope, reduce logistical and sourcing expenses, and generally step up sector-specific competitive advantage across the board.
The value chain in yarn fabrics and ready-mades is scattered and quite fragmented nation-wide. So, for instance, while cotton is grown in Gujarat and Maharashtra, spinning takes place in Tamil Nadu, processing gets done in Rajasthan and Gujarat, and garment-making happens mostly in the National Capital Region, Bengaluru and Kolkata. The proposed mega parks, spread over 1,000 acre and more, would provide facilities for weaving, dyeing, printing, fashion designing and garment-making in one location. They would have core infrastructure such as incubation centre, plug-and-play facility, and skill development units so as to keep abreast of the latest trends in textiles and apparel. The export potential in textiles is large. We need to build a conductive and innovative ecosystem with proactive policy.
The Centre has recently announced Rs. 10,683 crore production-linked incentive scheme for textiles. The textiles parks scheme would have an outlay of Rs. 4,445 crore, and is slated to provide support for project development in the cluster mode. The recent move to provide export- oriented units rebate on state and central taxes and levies would also help. But the fact remains that the share of textiles in India's export basket has declined, and is now barely in the double digits. A recent Crisil study says that absent free trade agreements (FTAs) hurt out export performance. Decent work in the textile parks would gain custom, in today's world.

Which one of the following will be the most critical to the export performance of Indian textiles?

Correct Answer: (b) Free trade agreements
Solution:

Free trade agreement is a pact between two or more nations to reduce barriers for imports and exports among them.

Free trade agreement will be the most critical to the export performance of Indian textiles.

92. Given below are two statements:

Statement I: Both central and state governments want to promote the units exporting textiles.

Statement II: The performance of textiles in India's export basket has improved.

In the light of the above statements, chose the correct answer from the options given below:

Correct Answer: (c) Statement I is true but Statement II is false
Solution:

Statement-I: Both central and state governments want to promote the units exporting textiles.

statement (1) is the true

Statement-II: The performance of textiles in India's export basket has improved.

statement (II) is the false

According to the para, the share of textiles in India's export basket has declined.

93. Which one of the following will not be a part of value chain in the proposed integrated mega textile and apparel parks?

Correct Answer: (c) Cotton production
Solution:

Cotton production will not be a part of value chain in the proposed integrated mega textile and apparels parks.

94. Which of the following states does not contribute to Indian textile industry?

Correct Answer: (c) Punjab
Solution:

According to the paragraph, Punjab does not contribute to Indian textile industry.

95. Given below are two statements: One is labeled as Assertion A and the other is labeled as Reason R.

Assertion (A): Indian textiles can regain their shine with the setting up of integrated mega textile and apparel parks.

Reason (R): The value chain in yarn, fabrics and ready-mades is scattered nation-wide.
In the light of the above statements, choose the most appropriate answer from the options given below :

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

Assertion (A): Indian textile can regain their sheen with the setting up of integrated mega textile and apparel parts.

Assertion (A) is the correct statement

Reason (R): The value chain in yarn, fabrics and ready-mades is scattered nation-wide.

Reason (R) is the also correct statement and (R) is the correct explanation of (A)

96. Read the following paragraph and answer the five questions that follow :

Section 455 of Indian Companies Act, 2013 talks about a New Provision Calls 'DORMANT COMPANY'. This concept was not there in Companies Act, 1956.

A Dormant Company offers excellent advantage to the promoters who want to hold an asset or intellectual property under the corporate shield for its usage at a later stage. For instance: if a promoter wants to buy lands now for its future project at a comparatively lesser price, he may do the same through dormant company so that he can use the land for its future project. Thus, dormant company status is a new phenomenon in the Companies Act 2013 and is an excellent tool for keeping assets in the company for its future usage. A dormant company may be either a public company or a private company or a one person company.

Certain companies, due to the nature of their business, may not be able to start any business, for a long time from the date of incorporation as for instance any business for creation intellectual property or for a future project and has no significant accounting transaction. Such a company may be an "Inactive company". Construction Companies/Real Estate Companies/Incorporate New Companies to hold land/properties for future projects. This concept is beneficial for them. By this concept, they can Incorporate Company and purchase property/land in that company and get status of Dormant company in comparison of active company. It will help to save cost of compliances for inactive companies.

Given below are statements: One is labelled as Assertion A and the other is labelled as Reason R:

Assertion (A): Provision is made to obtain the status of a 'dormant company' for a inactive company that doesn't trade

Reason (R): Dormant company doesn't trade but has significant accounting transaction.

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

Correct Answer: (c) (A) is correct but (R) is not correctt
Solution:

Assertion (A): Provision is made to obtain the status of a 'dormant company' for a inactive company that doesn't trade Assertion (A) is the correct statement.

Reason (R): Dormant company doesn't trade but has significant accounting transaction.

Reason (R) is the not correct statement. The correct statement is Dormant company doesn't have significant accounting transaction.

97. Dormant company offers excellent advantage to which of the following?

Correct Answer: (d) Promoters
Solution:

A Dormant company offers excellent advantage to the promoters.

98. Given below are two statements: One is labelled as Assertion A and the other is labelled as Reason R.

Assertion (A): If a company gets status of a dormant company, then it is subject to less compliance in comparison to active company.
Reason (R): It will help to save of compliances for Inactive companies when they become dormant company under section 455 of the Companies Act, 2013 as compared to the Companies Act, 1956.

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

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

Assertion (A): If a company gets status of a dormant company, then it is subject to less compliance in comparison to active company.

Assertion (A) is the correct statement.

Reason (R): It will help to save of compliances for inactive companies when they become dormant company under section 455 of the companies Act, 2013 as compared to the companies Act, 1956.

Reason (R) is the also correct statement and (R) is the correct explanation of (A).

99. Which of the following companies do not fall under a purview of Dormant company?

(A) Private company

(B) One person company

(C) Limited and unlimited liability companies

(D) Public company

(E) Government company

Choose the most appropriate answer from the options given below:

Correct Answer: (*)
Solution:

As per the paragraph, dormant company either can be a public or private or one person company.

100. Which one of the following nature of business is suitable to a Dormant company?

Correct Answer: (c) Real Estate business
Solution:

The meaning emerges from the paragraph that Real Estate business nature of business is suitable to a Dormant company.