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

Total Questions: 100

21. The banks wherein majority of depositors are non-residents are called

Correct Answer: (d) Offshore Banks
Solution:

• Onshore Banks refer to the banks located outside of home country, and handling transactions made in foreign currency. It is regulated under International Banking License (often called offshore license).
• It make easier for individuals and business to bank internationally and establish offshore accounts.
• The majority of depositors are non-residents.

22. Which of the following are key features of prudent accounting concepts and conventions?

A. It includes revenues and profits in the accounts when they are realised.
B. It prevents profits from being overstated.
C. It prevents a trader from more withdrawing from the business than is wise
D. Managerial efficiency and expertise.
E. Good customer relations
Choose the most appropriate answer from the options given below:

Correct Answer: (d) A, B and C only
Solution:

Following are the key features of prudent accounting concepts and conventions :-
• It includes revenues and profits in the accounts when they are realised.
• It prevents profits from being overstated.
• It prevents trader from more withdrawing from the business than is wise.
The concept of conservatism (also called 'prudence') provides guidance for recording transactions in the book of accounts and is based on the policy of playing safe.

23. Chain banking indicates the form of bank cartel that occurs when a small group of people control atleast three banks that are independently chartered

A. PAN number is required for deposits in a commercial bank for Rs. 50,000 and above.
B. Upon detection of counterfeit notes at the counter, the bank can impound the note and issue receipt
C. The interest rates on bank's contribution to Rural Infrastructure Development Fund is fixed by NABARD
D. RBI Act, 1934 prohibits the making or issuing of a promissory note expressed to be payable to the bearer thereof
Choose the most appropriate answer from the options given below:

Correct Answer: (b) B, C only
Solution:

The correct options regarding banking are :-
(B) PAN number is required for deposits in a commercial bank for Rs 50,000 and above.
(C) Upon detection of counterfeit notes at the counter, the bank can impound the note and issue receipt.

24. Given below are two statements:

Statement I : Display of goods by a shopkeeper with prices marked on them is not an offer but an invitation to the public to make an offer to buy the goods.
Statement II : Price quotations, catalogues and advertisements in newspapers for sale of an article do not constitute a valid offer.
In the light of the above statements, choose the correct answer from the options given below:

Correct Answer: (c) Statement I is true and Statement II is false
Solution:Statement I is true and statement II is false.
• Display of goods by a shopkeeper with prices marked on them is not an offer but an invitation to the public to make an offer to buy the goods.
• An offer is a proposal while an invitation to offer is an invitation to make a proposal.
• Price quotations, catalogues and advertisements in newspaper for sale of an article do not constitute a valid offer. Actually, they are considered to be invitations to make offers.

25. Which of the following factors favour product standardization in the international markets?

A. High cost of adaptation
B. Variations in conditions of use
C. Country of origin effect
D. Economics in R and D
E. Differences in technical standards.
Choose the most appropriate answer from the options given below:

Correct Answer: (b) A, C and D only
Solution:

• Following are the factors favour product standardization in the international markets :-
• High cost of adaptation :- As compare to adaptation standardization is more economical in International markets.
• Country of origin effect :- Country of origin effect refers to the practice of marketers and consumers associating brands with country of origin and making buying decisions made on the country of origin of the products.
• Economics in R and D :- Economics of scales in R & D, production and marketing favours product standardization.

26. As per the Agency Theory of Corporate Governance, which of the following statements are relevant?

A. Governance approach is materialistic.
B. Managers are motivated by the principals' objectives
C. Interests of the managers and principals converge
D. Behaviour pattern is opportunistic.
E. Owner's attitude is to avoid risks.
Choose the most appropriate answer from the options given below:

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

Agency theory defines the relationship between the principals (such as shareholders of company) and agents (such as directors of company). According to this theory, the principals of the company hire the agents to perform the work. The principals delegate the work of running the business to the directors or managers, who are agents of shareholders. The shareholders expect the agents to act and make decisions in the best interest of principals.
• The agent may be succumbed to self - interest, opportunistic behaviour and fall short of expectations of the principal.
• This theory is separation of ownership and control.
• Owner's principals attitude is to avoid risks.
• Governance approach is materialistic.

27. Steps involved in computation of Book Profit under MAT regime are as follows:

A. Arrive NP as per statement of P/L A/C of the company
B. Specific adjustments in case of merger.
C. Make adjustments pertaining to OCI items.
D. Adjust the book profit with stipulated exclusion and inclusion
E. Net amount of Book Profit for application of MAT rate
Choose the correct sequence from the options given below:

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

Following are the steps involved in computation of Book profit under MAT regime :-
• Arrive NP as per statement of P/L A/C of the company.
• Adjust the book profit with stipulated exclusion and inclusion.
• Specific adjustments in case of merger.
• Make adjustments pertaining to OCI items.
• Net amount of Book profit for application of MAT rate.

MAT stands for Minimum Alternate Tax, As per section 115 JB, every taxpayer being a company is liable to pay MAT, if the Income tax (including surcharge and cess) payable on the total income, computed as per provisions of the Income tax Act in respect of any year is less than 15% of its book profit + surcharge (SC) + health & education cess.

28. Which of the following are thinly veiled disguises that essentially restrict imports?

A. Voluntary import restrictions
B. Labeling requirements showing origin and contents
C. Import tariffs and quotas
D. Safety regulations for automobile and electrical equipments
E. Health regulations for hygiene production and packaging of imported food production
Choose the most appropriate answer from the options given below:

Correct Answer: (d) B, D and E only
Solution:

Following are thinly veiled disguises that essentially restrict imports
• Labeling requirements showing origin and contents.
• Safety regulations for automobile and electrical equipments.
• Health regulations for hygiene production and packaging of imported food productions.

29. Sequence the following in copyright ecosystem for literary creation under the Indian Copyright Act, 1957

A. Public communication
B. Copyright assignment
C. Content development
D. Relinquish copyright
E. Copyright transmission
Choose the correct answer from the options given below:

Correct Answer: (b) C → A → B → E → D
Solution:

Sequence as follows-

30. According to Herzberg's Two Factor Theory which one of the following is not a maintenance factor?

Correct Answer: (b) Esteem or Status
Solution:

According to Herzberg's two factor theory 'Esteem or Status' is not maintenance factor.
According to this theory of motivation, there are some job factors that result in satisfaction while there are other job factors that prevent dissatisfaction.
• Herzberg classified these motivating factors into two categories.

  1. Hygiene factors :- These factors are also called as dissatisfiers or maintenance factors. These are those job factors which are essential for existence of motivation at workplace. It includes pay, fringe benefits, status, physical working conditions, job securities etc.

  2. Motivational factors :- According to Herzberg these factors cannot be regarded as motivators. They yield positive satisfaction. They are inherent to work. These factors motivate the employees for superior performance. These factors are called satisfiers. It includes Recognition, Responsibility, meaningfulness of the work etc.