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

Total Questions: 100

51. Dimensions of VALS™ framework to include which one of the following?

Correct Answer: (a) Consumer motivation and consumer resources
Solution:

VALS (Values and Lifestyles) is an approach to market segmentation whereby consumers are segmented into mutually exclusive groups based on their psychographics.
VALS groups consumer segments based upon two dimension primary motivations (ideals, achievement and self expression) and resources (energy, self-confidence, intellectualism, novelty seeking, innovativeness, impulsiveness, leadership and vanity).
The current eight VALS types are:- Innovators, Thinkers, Achievers, Experiencers, Believers, strivers, makers, and survivors.

52. Which of the following are the main platforms for social media?

A. Search Engines
B. Online communities and forums
C. Blogs
D. Social Networks
E. Web 1.0
Choose the correct answer from the options given below:

Correct Answer: (a) B, C and D only
Solution:

Social media refers to the means of interactions among people in which they create, share, and/or exchange information and ideas in virtual communities and networks. Online communities and forums, Blogs, and social networks are the main platforms for social media.

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

Assertion (A) : Capital structure is determined within debt capacity of a company and it should not be exceeded.
Reason (R) : Debt capacity of a company depends on its ability to generate cash flows. It should generate cash enough to pay lenders fixed charges and principal sum.
In the light of the above statements, choose the most appropriate answer from the options given below:

Correct Answer: (b) Both (A) and (R) are correct and (R) is not the correct explanation of (A)
Solution:

Capital structure is determined within the debt capacity of a company and it should not be exceeded.
Debt capacity refers to the amount of debt a business can incur and repay according to the terms of a debt agreement.
Debt capacity should be taken as a measure of the capacity to pay back the debt rather than a debt ratio. That is, debt capacity symbolizes the ability of a firm to meet its debt obligation in time.

54. Which one of the following is an example of Secondary Reserves?

Correct Answer: (c) Investment in Commercial Paper
Solution:

 Investment in commercial paper.
Investment in commercial paper is an example of Secondary Reserves.
Commercial paper is short - term money market instrument (maturity period of about 270 days) issued by big corporates for meeting short term liabilities.
Secondary Reserves are near - cash; interest earning assets that banks maintain in addition to the primary reserves to satisfy their liquidity requirements with bank regulators.

55. In order to maintain its market share, a market follower can employ:

Correct Answer: (a) Counter feiting strategy
Solution:

Counter feiting strategy.
A market follower is a company that follows the foot step of the market leader. In order to maintain its market share; a market follower can employ counterfeiting strategy.
In counterfeiting strategy, the followers manufacture a slightly different copy of the original product and sell it in the market as original.

56. Sequentially arrange the following themes related to globalization of Indian businesses since independence:

A. FDI in various sectors opened along with a slashing of custom duties
B. Partial opening of economy to external trade and de-licensing of some key sectors.
C. Govt. - led investments in large public sector units in steel, chemicals and power.
D. Indian businesses became competitive and started to reap rewards of various phases of development learning.
E. Increased government involvement in industry with sustained focus on import substitution.
Choose the correct answer from the options given below:

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

Following are the sequentially arrange themes related to globalization of Indian businesses since independence.
• Govt. - led investments in large public sectors units in steel, chemicals and power.
• Increased government involvement in industry with sustained focus on import substitution.
• Partial opening of economy to internal trade and de - licensing of some key sectors.
• FDI in various sectors opened along with slashing of custom duties.
• Indian businesses became competitive and started to reap rewards of various phases of development learning.

57. In case of a warranty, the buyer can:

Correct Answer: (b) Claim damages only
Solution:

A warranty is a contract between the seller and the buyer where the seller promises the consumer of the products that if the product faces certain problems which are already mentioned in the contract the seller is bound to replace or repair the product without any extra cost.
Once the warranty is breached or about to be breached you can buy the extended warranty from the seller or also from any other third party agents.

58. Tax holiday under the Income Tax Act 1961 has been used in the context of which one of the following?

Correct Answer: (a) Section 80 IA
Solution:

Tax Holiday – Deduction [Section - 80 IA]
(Deductions in Respect of profits and Gains from Industrial Undertaking or Enterprises Engaged in Infrastructure Development).
Under this section eligible assesses will get tax deduction on profits under business head for specified period of time.

59. Arrange the following stages of delegation in correct sequence:

A. Establish proper controls.
B. Select the person in light of the job to be done.
C. Reward effective delegation and successful assumption of authority.
D. Define assignments and delegate authority in light of results expected.
E. Maintain open lines of communication.
Choose the correct answer from the options given below:

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

Following are the stages of delegation.
• Define assignments and delegate authority in light of results expected.
• Select the person in light of the job to be done.
• Maintain open lines of communication.
• Establish proper controls.
• Reward effective delegation and successful assumption of authority.

60. Which one of the following theories describes FDI flows in ecosystems?

Correct Answer: (a) Product Life Cycle Theory
Solution:

(Product Life Cycle Theory there are three stages in the life of a product; these are, new product stage, maturing product stage and standardized product stage).
• FDI occurs in the later two stages. In maturing stage product picks up in consumer acceptance and popularity, demand for it rises both in domestic as well as in foreign markets. The firm sets up manufacturing facilities abroad to expand production capacity to meet growing demand from domestic and foreign consumers.
• In this stage firm directly invests in facilities in countries where demand is high.