NTA UGC NET/JRF Exam, June 2019 Commerce (Morning-Shift)

Total Questions: 100

31. The retail supply chain does NOT include

Correct Answer: (d) regulators
Solution:

Retail supply chain is the process you use to get your products to your consumer. It encompasses everything from obtaining the raw materials to make your product to delivering that product into your shopper's hands.
Players in the supply chain:
• Supplier
•Manufacturer
• Distribution
• Retailer
• Customer

32. Find the marginal revenue of a firm that sells a product at a price of ₹10 and the price elasticity of demand for the product is (-) 2.

Correct Answer: (a) ₹5
Solution:

Formula:
Elasticity = Average revenue/(average revenue-marginal revenue)
2 =10/(10-mR)
20-2 mR = 10
10 =2 mR
Therefore, mR = Rs. 5

33. Under which of the following situations, the decision outcome on evaluation of investment opportunities vary under NPV and IRR methods per se?

(A) Time disparity Search engine
(B) Cost disparity
(C) Life disparity
(D) Volume disparity
Choose the correct combination of situations: 

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

Conflicts between NPV and IRR: when analyzing a single conventional project, both NPV and IRR will provide the same indicator about whether to accept the project or not. However, when comparing two project, the NPV and IRR may provide conflicting result. Conflicting result arise because of the following reason:

1. A significant difference in the size (amount) of cash outlays of various proposals under consideration.
2. The problem of difference in the cash flow patterns or timing of the various proposals and
3. The difference in service life or unequal expected lives of the project.
Volume disparity does not lead to conflict between NPV and IRR decisions.

34. The attitude based on beliefs, opinion, knowledge or information about the particular event which the employees possesses is

Correct Answer: (c) cognitive attitude
Solution:

Cognitive Attitude- refers to the thought, perception or ideas of the person toward the object of the attitude. Affective component is about emotional reaction or feeling of the person toward the object of the attitude such as like or dislike.

35. Match List-I with List-II:


Choose the correct option from those given below:

Correct Answer: (a) (A)-(iii); (B)-(iv); (C)-(i); (D)-(ii)
Solution:

The following are of the correct match:

36. X is an individual of 55 years of age having gross total income ₹3,50,000. What is the tax liability for assessment year 2018-19?

Correct Answer: (c) ₹2,580
Solution:

Explanation-

37. List out from the given statements the important ethical principles that buisness should follow:

(A) To take the necessary action for the development of the concerned industry or business.
(B) Pay taxes and discharge other obligations promptly
(C) To ensure the best utilisation of the human resources.
(D) Refrain from secret kickbacks or pay-offs to customers, suppliers, administrators, etc.
(E) Ensure payment of fair wages and fair treatment of employees.
Choose the correct answer from the options given below:

Correct Answer: (b) (B), (C) and (E)
Solution:

12 Ethical principle to be followed in business are as follows:- Honesty, integrity, trustworthiness, loyalty, fairness compassion/empathy, respect, law-abiding, commitment to excellence, positive leadership, reputation and moral, accountability.

(1) Thus, a business must pay taxes and discharge other obligations promptly to follow the principle of law abiding.
(2) A business must refrain from secret kick backs or pay off to customers, suppliers, administrations etc. to follow the principle of loyalty, honesty and
integrity.
(3) And a business must ensure payment of fair wages and fair treatment of employees to follow the principle of fairness and respect.

38. Match List-I with List-II :

Choose the correct option from those given below:

Correct Answer: (b) (A)-(iv); (B)-(iii); (C)-(ii); (D)-(i)
Solution:

Following are of the correct match:

39. Which among the following is NOT included in negotiable instrument?

Correct Answer: (d) Mutual Fund
Solution:

Negotiable Instrument: means transferable by delivery and instrument is a written document which creates a right in favour of any person.
- Negotiable instrument recognised by status are:
(i) Promissory notes
(ii) Bill of exchange
(iii) Cheques

40. Capital structure and leverage decisions come in the ambit of

Correct Answer: (c) financing decisions
Solution:

Capital structure ratio are calculated to test the long term financial position of the business concern. The following ratios are calculated to analyze the capital structure of the business concern.
1. Capital gearing ratio Financial leverage
• Operating leverage
•Combined leverage
2. Debt equity ratio
3. Total investment to long term liabilities
4. Ratio of fixed assets of funded debt
5. Ratio of current liabilities to proprietors funds
6. Ratio of reserve to equity capital