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

Properties of Normal Distribution:-
• The mean, median and mode are equal
• The normal curve is bell-shaped and is symmetric about the mean.
• Asymptotic to the X-axis
• μ and σ are the two parameters.
• The curve is continuous.
• The total area under the normal distribution curve is equal to 1 or 100%

Rearrange steps of evaluating an Investment proposal using NPV method:-

(C) Forecasting cash flows
                       ↓
(B) Identify an appropriate discount rate
                       ↓
(A) Calculated the present value of cash flows
                       ↓
(E) Compute the net present value
                       ↓
(D) Rank the projects as per NPV
Therefore option (c) is the correct answer.

Measures of skewness is the degree of lopsidedness (tiltness) in a distribution.
A positive skewness means a longer right tail.
A negative skewness means a longer left tail.
Zero skewness means the distribution is symmetric about its mean.

Translation exposure is the risk of having assets in foreign exchange rates trigger losses on business transactions or balance sheet holdings.
Therefore, the potential that a firm's consolidated financial statements be affected as a result of changes in exchange rates is called as Translation Exposure.

 Successive order of new product development process:

(C) Idea screening
                               ↓
(A) Concept Development and Testing
                               ↓
(B) Marketing strategy Development
                              ↓
(D) Product Development
                              ↓
(E) Test Marketing

Historical cost Approach was developed by William C. Pyle (and assisted by R. Lee Brummet & Eric G. Flamholtz) and R.G. Barry corporation, a leisure footwear manufacturer based on Columbus, Ohio (USA) in 1967. In this approach, actual cost incurred on recruiting, hiring, training and development the human resources of the organisation are capitalised and amortised over the expected useful life human resource.

 Time spent in administration in the increasing order by the following personnel:
(C) Fore man
                ↓
(A) Works Manager
                ↓
(E) General Manager
                ↓
(B) President
                ↓
(D) Board of Directors.

The assumptions of M.M Hypothesis:
• Perfect Capital Markets
• Homogenous Risk Classes
• Business Risks
• Absence of Taxes
• Full Dividend Payout
• Same expectation of firm's EBIT with which to evaluate the value of a firm
Therefore, option (b) is the correct answers.

According to section 13 (a) of the Negotiable Instrument Act, “Negotiable Instrument means a promissory note, bill of exchange or cheque payable, either to ordered or to bearer, whether the word ‘order’ or bearer appear on the instrument or not”.
Characteristics of Negotiable Instrument:
• Negotiable instrument are easily transferable.
• Cheque is always drawn on a banker.
• They are payable either to order or bearer.
• Liability of the negotiable Instrument in Law extensive.
• By usage Bank Notes, Bank Drafts, Treasury Bill etc.

Following inputs are considered while deciding economic value to customer pricing:
• Buyer’s image of the product performance
• warranty quality
• Customer demand.