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

Total Questions: 100

61. Match List I with List-II

List-IList-II
(A) Appointment of auditors by CAG(i) Section 139 (5)
(B) Qualifications and disqualifications of auditors(ii) Section 141
(C) Powers and duties of auditors(iv) Section 143
(D) Remuneration of auditors(iii) Section 142

Choose the correct answer from the options given below :

(A)(B)(C)(D)
(a)iiiiiiiv
(b)iiiiviii
(c)iiiiviii
(d)iiiiiiiv
Correct Answer: (c)
Solution:The code of correct Matching of List-I with List-II:
List-IList-II
(A)Appointment of auditors by CAG(i)Section 139 (5)
(B)Qualifications and disqualifications of auditors(ii)Section 141
(C)Powers and duties of auditors(iii)Section 142
(D)Remuneration of auditors(iv)Section 143

62. According to the Stewardship Theory of Corporate Governance, which of the following statements are relevant?

(A) Governance approach is sociological and psychological
(B) Behaviour pattern is trustworthy
(C) The role of management is to monitor and control
(D) Owner's attitude is to take risks
(E) Interests of the managers and principals converge
Choose the most appropriate answer from the options given below :

Correct Answer: (b) (A), (B), (D), (E) only
Solution:The stewardship theory supports the view that the managers consider about their personal reputation and value their integrity.
According to the Stewardship Theory of Corporate Governance, following statements are relevant:
• Governance approach is sociological and psychological
• Behaviour pattern is trustworthy
• Owner's attitude is take risks
• Interests of the managers and principals converge

63. According to FEMA foreign exchange does not include which one of the following?

Correct Answer: (d) Draft drawn by banks outside India and payable in foreign currency
Solution:

According to FEMA, foreign exchange include:

  • Deposit payable in any foreign currency
  • Bill of exchange drawn in Indian currency but payable in any, foreign currency
  • Travellers cheques drawn by institutions outside India but payable in Indian currency.
  • Deposits, credits and balances payable in any foreign currency.
  • FEMA foreign exchange does not include draft drawn by banks outside India and payable in foreign currency

64. Arrange the following steps in a proper sequence to develop successful market offering:

(A) The specifics of the market offering
(B) Monitoring goal progress
(C) The ultimate criterion for success
(D) The logistics of creating the offering
(E) The value created in the target market
Choose the correct answer from the options given below :

Correct Answer: (d) (C), (E), (A), (D), (B)
Solution:

Steps in a proper sequence to develop successful market offering:
(C) The ultimate criterion for success
                                       ↓
(E) The value created in the target market
                                      ↓
(A) The specifics of the market offering
                                      ↓
(D) The logistics of creating the offering
                                     ↓
(B) Monitoring goal progress

65. Which one of the following is not the assumption for consumer behaviour based on the cardinal utility approach?

Correct Answer: (c) Diminishing marginal utility of money
Solution:

Assumption for consumer behaviour based on the cardinal utility approach are:
• Maximization of satisfaction
• Utility cardinally measurable
• Utility is additive
• Consumers income is limited to buying good/services
• Marginal utility of money doesn't change

Diminishing marginal utility of money is not the assumption for cardinal utility approach

66. A firm is exposed to translation loss if it uses current exchange rate to translate its assets and liabilities. Which among the following are methods use in translating assets and liabilities?

(A) Current/Non-Current method
(B) Temporal method
(C) Monetary/Non-monetary method
(D) Current Rate method
(E) Transaction/Non-transaction method
Choose the correct answer from the options given below :

Correct Answer: (c) (A), (B), (C), (D) only
Solution:

Translation exposure is a kind of accounting risk that arises due to fluctuations in currency exchange rates.
• Converting the values of a foreign subsidiary's holdings into the parent company's domestic currency can lead to inconsistencies if exchange rates change continuously.
There are four methods of measuring translation exposure i.e.:
– Current/Non - Current Method
– Monetary/Non - Monetary Method
– Current Rate Method
– Temporal Method

67. Match List I with List-II

List-I (Type of lease)List-II (Description)
(A)Leveraged lease(i)Mix of operating and finance lease on full payout basis and provides for the purchase option to the lessee
(B)Direct lease(ii)Financing for servicing and fuel in the aircraft industry
(C)Wet lease(iii)Protects lessee against the rate of obsolescence
(D)Update lease(iv)Involves lessor, lessee and financer, lessor provides equity and major amount is provided by the financer as loan

Choose the correct answer from the options given below :

Correct Answer: (b)
Solution:The code of correct matching of List-I with List-II:
List-I
(Type of lease)		List-II (Description)
(A)Leveraged lease(iv)Involves lessor, lessee and financer, lessor provides equity and major amount is provided by the financer as loan
(B)Direct lease(i)Mix of operating and finance lease on full payout basis and provides for the purchase option to the lessee
(C)Wet lease(ii)Financing for servicing and fuel in the aircraft industry
(D)Update lease(iii)Protects lessee against the rate of obsolescence

68. Arrange the following processes in a proper sequence to conduct scientific research :

(A) Induction
(B) Making prediction
(C) Observation of facts
(D) Testing of prediction
(E) Development of explanations
Choose the correct answer from the options given below :

Correct Answer: (b) (C), (A), (E), (B), (D)
Solution:Processes of scientific research in proper sequence are :
(C) Observation of facts
            ↓
(A) Induction
           ↓
(E) Development of explanations
           ↓
(B) Making prediction
           ↓
(D) Testing of prediction

69. Which of the following statement (s) are correct?

(A) Asset liability management is a mechanism to address the risk arising due to mismatch of assets and liabilities
(B) Non-performing assets (NPA) must be written off as loss in the financial year in which NPA has been identified
(C) Undisclosed reserves are included in capital of banks (Tier II) if they represent accumulation of post-tax profits
(D) Bank cannot accept deposits from the public for a period exceeding five years
(E) Hybrid debt capital instruments may be included in Tier II capital
Choose the correct answer from the options given below :

Correct Answer: (d) (A), (C), (E) Only
Solution:The following are correct statement:
(A) Asset liability management is a mechanism to address the risk arising due to mismatch of assets and liabilities
(C) Undisclosed reserves are included in capital of Bank (Tier-II) if they represent accumulation of post-tax profits
(E) Hybrid debt capital instruments may be included in tier II capital
Option (B) and (D) is not correct statement

70. Which one of the following is not an advantage in case of product-based departmentalization?

Correct Answer: (b) Requires less number of managerial personnel to be employed
Solution:

Advantage in case of product-based departmentalization:
• It leads to continuous and undivided attention to the product
• It enables top management to compare the performances of different products.
• It motivates departmental head to improve his performance
• Ensures Better Quality
"Requires less number of managerial personnel to be employed" is not correct advantage in case of product-based departmentalization