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

Total Questions: 100

81. If the subject matter of insurance is the ship, the marine insurance is called:

Correct Answer: (b) Hull insurance
Solution:

If the subject matter of insurance is ship, the marine insurance is called Hull insurance.
Marine hull insurance allows owners to insure their vehicles against damage and destruction of hull, machinery, fitting and freight, as well as protection against construction and ship - breaking risk, liabilities, disbursement losses, oil and energy - related risks, etc.

82. Which of the following statements are correct?

A. The difference between sample variance and population variance computation is u replaced by x.
B. Cronbach alpha value less than 0.30 indicates reliability of research instrument
C. The value of R² = 1 may imply that regression is spurious
D. The identical observation of sample and population parameters shows that every sample can be substituted as population
E. Randomise control trial is a qualitative approach to research
Choose the correct answer from the options given below:

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

• The difference between sample variance and population variance computation is u replaced by x. Statement A is true.
• If the cronbach Alpha value is 0.60 and below, it would mean that the instrument has a low reliability and it's unacceptable. If the value of cronbach Alpha is within the range of 0.60 to 0.80, it means that the value of cronbach Alpha is moderate acceptable. Statement B is false.
• The value of R² = 1 may imply that regression spurious R² = 1 statement C is true.
• The identical observation of sample and population parameters shows that every sample can be substituted as population. Statement D is true.
• Randomise control trial is a qualitative approach to research. Statement E is true.

83. Which one of the following is not valid as per the Limited Liability Partnership Act, 2008?

Correct Answer: (d) Every LLP is a separate legal entity independent of its partners
Solution:

Concept of "limited liability partnership"
(i) LLP shall maintain its books of accounts on double entry system and on each or accrual basis.
(ii) LLP shall prepare a statement of account and solvency for each financial year.
(iii) Every LLP shall file an annual return with the Registrar of Companies.
(iv) Every LLP is not a separate legal entity independent of its partners.

84. If the information sought has been supplied by third party or is treated as confidential by that third party, the third party must give a representation before the PIO in reply to the notice issued to it within how many days from the date of receipt of notice:

Correct Answer: (c) 10 days
Solution:

If the information sought has been supplied by third party or is treated as confidential by that third party, the third party must give a representation before the PIO in reply to the notice issued to it within 10 days from the date of receipt of such notice.

85. A prudent financial policy suggested by Marris Hypothesis to maximise balanced growth of the firm is based on which of following financial ratios?

A. Return on investment ratio
B. Debt equity ratio
C. Return on capital employed ratio
D. Liquidity ratio
E. Retention ratio
Choose the most appropriate answer from the options given below:

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

A prudent financial policy suggested by Marris Hypothesis to maximise balanced growth of the firm is based on retention ratio, liquidity ratio and debt equity financial ratio.

86. Michael Porter has identified five forces that determine the intrinsic long-term attractiveness of a market. According to the model, which of the following are true?

A. A segment is unattractive if it already contains numerous aggressive competitors
B. A segment is unattractive if it is stable or declining
C. A segment is unattractive if it has high entry barriers and low exit barriers
D. A segment is unattractive if the company's supplies are able to raise prices
E. A segment is unattractive when there are actual or potential substitutes for the product
Choose the most appropriate answer from the options given below:

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

Michael Porter's has identified Five Forces of competitive Position Analysis were developed in 1979.
It is a simple framework for assessing and evaluating the competitive strength and position of a business organisation. The five forces are
(1) supplier power
(2) Buyer power
(3) Threat of substitution
(4) Competitive rivalry
(5) Threat of new entry. Hence includes its -
(i) A segment is unattractive if it already contains numerous aggressive
(ii) A segment is unattractive if it is stable or declining
(iii) A segment is unattractive when there are actual or potential substitutes for the product.
(iv) A segment is unattractive if the company suppliers are able to raise prices.

87. Which one of the following is a myth about rural markets?

Correct Answer: (d) Only low priced products sell in rural markets
Solution:

Different research studies proves that today Rural buyers purchase branded products which are available at high price. So, it is a myth that only low price products sell in rural markets.

88. Arm's length price computation method under 92C(c) of the Income Tax Act, 1961 does not include which one of the following?

Correct Answer: (d) Slum sale price method
Solution:

Under Income Tax Act, 1961 define Arm length price is the price applied when two unrelated persons entered into a transaction in uncontrolled conditions. Methods of computation of Arm's length price under section 92 C are -
(i) Cost plus method
(ii) Profit split method
(iii) Comparable uncontrolled price method.
(iv) Resale price method
(v) Transaction Net margin method.

89. When a monopolist switches from charging a single price to perfect price discrimination, it reduces:

Correct Answer: (c) Consumer surplus
Solution:

Perfect price discrimination, occurs when a business charges the maximum possible price for each unit consumed. Because prices vary among units of firm captures all available consumer surplus for itself or the economic surplus.

90. Given below are two statements:

Statement I : Marketing managers must calculate customer lifetime value in order to understand their profit implications.
Statement II : Activity - based costing, an accounting technique, is very useful for conducting customer profitability analysis.
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:

Statement I - Marketing managers must calculate customer lifetime values of their customer base to understand their profit implications.
Statement II - Activity based costing, an accounting technique, is very useful for conducting customer profitability analysis.
Customer profitability analysis and service pricing. Hence, Both statements are correct.