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

Total Questions: 100

71. Given below are two statements :

Statement I : Distribution channels are sets of interdependent organizations participating in the process of making a product available for consumption.
Statement II : All marketing channels have the potential for conflict and competition resulting from goal incompatibility
In the light of the above statements, choose the correct answer from the options given below :

Correct Answer: (a) Both Statement I and Statement II are true
Solution:

"Distribution channels are sets of interdependent organizations participating in the process of making a product available for consumption" is true statement.
"All marketing channels have the potential for conflict and competition resulting from goal incompatibility" is also true statement

72. The following information with respect to a company is given below :

Net Profit before tax = Rs. 1,00,000
10% Preference share capital (Rs. 10 each) = Equity share capital (Rs. 10 each) = Rs. 1,00,000
Taxation at 50% of Net Profit
Which share among the following is the earning per share?

Correct Answer: (b) Rs. 4
Solution:

73. Match List I with List II :

List-I Earnings-Valuation ratiosList-II Underlying Description (s)
(A)Price-Earnings (P-E) ratio(i)Stock price divided by accounting net worth
(B)Earnings Yield Ratio(ii)Firm's P/E ratio divided by an index P/E ratio
(C)Price-Book (P/B) ratio(iii)Stock price divided by the earnings per share
(D)Relative P/E ratio(iv)Earning per share divided by stock price

Choose the correct answer from the options given below :

Correct Answer: (d)
Solution:The code of correct matching of List-I with List-II:
List-I Earnings-Valuation ratiosList-II Underlying Description (s)
(A)Price-Earnings (P-E) ratio(iii)Stock price divided by the earnings per share
(B)Earnings Yield Ratio(iv)Earning per share divided by stock price
(C)Price-Book (P/B) ratio(i)Stock price divided by accounting net worth
(D)Relative P/E ratio(ii)Firm's P/E ratio divided by an index P/E ratio

74. In case of two production-inputs, which one of the following is not a property of Isoquants (the production indifference curves)?

Correct Answer: (b) Concave to the point of origin
Solution:

Property of Isoquants (the production IC):
• An Isoquant curve slopes downward, or is negatively sloped,
• An Isoquant curve, because of the MRTS effect, is convex to its origin.
• Isoquant curves cannot be tangent or intersect one another.
• Isoquant curves in the upper portions of the chart yield higher outputs.
• Isoquant curve should not touch the X or Y axis on the graph.
• Non-Intersecting and non-tangential
Therefore, concave to the point of origin is not a property of Isoquant.

75. Arrange the following pricing strategies and other practices as per the life-cycle of a new product of which no close substitutes are available

(A) Gradual rise in price
(B) Product improvement and market segmentation
(C) Gradual reduction in price to retain sales
(D) Skimming pricing
(E) Large price cuts
Choose the correct answer from the options given below :

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

Pricing strategies as per the Life-Cycle of a new product in arranged order:-
(D) Skimming pricing
                      ↓
(A) Gradual rise in price
                      ↓
(B) Product improvement and market segmentation
                     ↓
(C) Gradual reduction in price to retain sales
                     ↓
(E) Large price cuts.

76. Heckscher-Ohlin Theory of factor endowment suggests which of the following types of relationships?

(A) Production-Marketing relationship
(B) Land-Labour relationship
(C) Marketing-Capital relationships
(D) Labour-Capital relationships
(E) Technological complexities
Choose the correct answer from the options given below :

Correct Answer: (c) (B), (D), (E) only
Solution:

The Heckscher-Ohlin theorem says that countries will export products that are press in abundance in the nation and have cheap factor of production. They import products that use the countries scarce factor and not present in the nation itself.
Heckscher-ohlin theory of factor endowment suggests different types of relationship i.e. :
• Land-Labour relationship
• Labour-capital relationship
• Technological complexities

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

Assertion (A) : Every perfectly competitive firm in the long run earns normal profit only.
Reason (R) : Market price gets fully adjusted, due to change in the demand and the supply conditions and the resultant free entry and exit of the firms in the perfectly competitive market, so as only the normal profit persists.
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) : "Every perfectly competitive firm in the long run earns normal profit only" is the correct statement.
Reason (R) : Market price gets fully adjusted, due to change in the demand and the supply conditions and the resultant free entry and exit of the firms in the perfectly competitive market, so as only the normal profit persists.
Reason (R) is also correct statement and (R) is the correct explanation of (A).

78. Which of the following issues are addressed by the Information Technology Act, 2000?

(A) Legal recognition of electronic documents
(B) Redressal of grievances
(C) Offenses and contraventions
(D) Disputes settlements
(E) Justice dispensation system for cyber crimes
Choose the correct answer from the options given below :

Correct Answer: (d) (A), (C), (E) only
Solution:

Information Technology Act, 2000 addressed the following issues:

  •  Legal recognition of electronic documents
  • Legal recognition of digital signatures
  • Defines cyber crimes and prescribed penalties for them established a cyber appellate tribunal to resolve disputes arising from this new law.
  • Offenses and contraventions.
  • Justice dispensation systems for cyber crimes.

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

Assertion (A) : There is a change in the profit sharing ratio of the old partners when a new partner gets his share of profit from all the partners
Reasons (R) : When a new partner is admitted into the partnership for a certain share of profit, the combined shares of the old partners will be reduced
In the light of the above statements, choose the 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) : There is a change in the profit sharing ratio of the old partners when a new partner gets his share of profit from all the partners.
Assertion (A) is the correct statement.
Reason (R) : When a new partner is admitted into the partnership for a certain share of profit, the combined shares of the old partners will be reduced.
Reason (R) is the also correct statement and (R) is the correct explanation of (A).

80. Match List I with List II :

List-I PLC StageList-II Communication Strategy
(A)Introduction(i)Stress brand differences and benefits and encourage brand switching
(B)Maturity(ii)Build awareness and interest in the mass market
(C)Growth(iii)Reduce to minimal level needed to retain customers
(D)Decline(IV)Build product awareness and trial among dealers

Choose the correct answer from the options given below :

(A)(B)(C)(D)
(a)iviiiiii
(b)iviiiiii
(c)iiiiviii
(d)iiiviiii
Correct Answer: (b)
Solution:The code of correct matching of List-I with List-II:
List-I PLC StageList-II Communication Strategy
(A)Introduction(IV)Build product awareness and trial among dealers
(B)Maturity(i)Stress brand differences and benefits and encourage brand switching
(C)Growth(ii)Build awareness and interest in the mass market
(D)Decline(iii)Reduce to minimal level needed to retain customers