NTA UGC NET/JRF Exam, September 2024 (Commerce)

Total Questions: 100

41. Match the List-I with List-II.

List-I (Technique)List-II (Description)
(a) Gordon TechniqueI. Teaching the importance of resolving matters
(b) Morphological AnalysisII. Insight into a given interaction
(c) Built-in-TensionIII. Listing of alternative solution to problems
(d) MonodramaIV. Steering a discussion to crystallize solutions

Choose the correct answer from the options given below:

Correct Answer: D.
Solution:This question involves matching various techniques with their correct descriptions:
(a) Gordon Technique is matched with IV, "Steering a discussion to crystallise solutions." The Gordon Technique is often utilized to guide discussions toward clear and specific solutions in group settings, helping participants focus on problem-solving.
(b) Morphological Analysis is matched with III, "Listing of alternative solution to problems." This technique involves systematically exploring all possible solutions to a problem by examining multiple dimensions and combinations, often used in innovation and design.
(c) Built-in Tension is matched with I, "Teaching the importance of resolving matters." This technique is used to build awareness and emphasize the need for resolving issues, ensuring that conflicts or tensions are addressed constructively.
(d) Manodrama is matched with II, "Insight into a given interaction." Manodrama involves role-playing scenarios that provide deep insights into interpersonal dynamics and individual behaviours within those interactions.

42. Transmission of shares is effected by which of the following?

(a) Sale                     (b) Death
(c) Insolvency        (d) Maturity
Choose the correct answer from the options given below:

Correct Answer: D. (b) & (c) only
Solution:(D) Transmission of shares occurs when the legal title to shares passes from one person to another without the action of the owner, usually due to statutory or automatic reasons. This can happen in scenarios such as: (b) Death: Upon the death of a shareholder, the shares are transmitted to the heirs or legal representatives of the deceased.
(c) Insolvency: In the event of insolvency, the shares owned by the insolvent are transmitted to a trustee or similar entity managing the insolvent's assets. Transmission is distinct from the sale of shares, which is a voluntary action taken by the shareholder, and maturity is not applicable as shares do not have a maturity date like bonds or other fixed-income securities.

43. Arrange the following forums in correct sequence of first appeal to final appeal by an assessee under Income Tax Act-1961.

(a) Supreme Court
(b) High Court
(c) Appellate Tribunal
(d) Joint Commissioner
Choose the correct answer from the options given below:

Correct Answer: B. (d), (c), (b), (a)
Solution:The correct sequence of forums for appeal by an assessee under the Income Tax Act-1961 from the first appeal to the final appeal is:
(d) Joint Commissioner: The first level of appeal is usually before the Joint Commissioner or Commissioner (Appeals), where initial grievances regarding assessments are addressed.
(c) Appellate Tribunal: If the assessee is not satisfied with the decision of the Joint Commissioner, they may appeal to the Income Tax Appellate Tribunal, which is the second level of appeal.
(b) High Court: Further appeals can be made to the High Court if the matter involves a substantial question of law.
(a) Supreme Court: The final appeal can be made to the Supreme Court, which is the highest judicial authority, if the High Court certifies that the case is fit for appeal to the Supreme Court.

44. What will be the dividend per share of Rohtas Industries for the year 2024 given the following information about the company?

EPS for 2024 = 3
DPS for 2023 =1.2
Target Payout Ratio = ₹ 0.6
Adjustment Rate = ₹ 0.7

Correct Answer: B. ₹ 1.62
Solution:o calculate the dividend per share for Rohtas Industries for the year 2024, we use the following data and a formula that integrates both the target payout ratio and the adjustment rate:
Earnings Per Share (EPS) for 2024 :₹ 3
Dividend Per Share (DPS) for 2023 : ₹ 1.2
Target Payout Ratio: 0.6 (60% of EPS)
Adjustment Rate: 0.7
The dividend adjustment model applied is typically used to gradually shift the dividend payment towards a target payout ratio, reflecting a policy of stabilizing dividend payments. The formula to calculate the adjusted dividend per share for the next year is:Therefore, the calculated dividend per share for Rohtas Industries for the year 2024, using the provided EPS for 2024, the previous year's DPS, the target payout ratio, and the adjustment rate, is1.62. This calculation shows a controlled approach to increasing the dividend, aligning it closer to the target payout ratio while considering the previous year's dividend level.

45. Arrange the following steps involved in the process of IPO issue in correct order.

(a) Verification by SEBI
(b) Hiring an under writer
(c) Registration for IPO
(d) Pricing of IPO
(e) Allotment of shares
Choose the correct answer from the options given below:

Correct Answer: D. (b), (c), (a), (d), (e)
Solution:The correct sequence for the steps involved in the process of an Initial Public Offering (IPO) issue is:
(b) Hiring an underwriter: The first step involves selecting an underwriting firm that will help in preparing the IPO, including drafting the prospectus and performing due diligence.
(c) Registration for IPO: Once the underwriter is hired, the company files a registration statement with the Securities and Exchange Board of India (SEBI), which includes all pertinent financial and business information.
(a) Verification by SEBI: After registration, SEBI reviews the submitted documents to ensure compliance with regulations and to protect investor interests.
(d) Pricing of IPO: The price band of the IPO is determined based on the valuation of the company, market conditions, and investor interest.
(e) Allotment of shares: Finally, shares are allotted to investors, and the company receives the funds raised from the IPО. This step marks the completion of the IPO process and the beginning of the company's life as a publicly-traded entity.

46. Which of the following is the pre-condition for applying Chi-square test?

Correct Answer: A. Data should not be presented in percentage or ratio form.
Solution:A key precondition for applying the  Chi-square test is that the data must be presented in frequency counts rather than in percentages, ratios, or other transformed. values. The Chi-square test is a statistical test commonly used to compare observed data with data we would expect to obtain according to a specific hypothesis.

The test's validity depenis on the fact that the data are frequencies of occurrences in different categories, allowing it to measure how the observed frequencies deviate from the expected frequencies. Using percentages or ratios instead of actual counts can lead to inaccuracies in the calculation of the Chisquare statistic because the original data scale is altered, potentially affecting the sum of squared differences crucial for the test's computation.

47. Which of the following is/are included in salary as per section-17 of Income Tax Act 1961?

(a) Wages
(b) Perquisite
(c) Profits in lieu of salary
(d) Compensation on termination of employment
Choose the correct answer from the options given below:

Correct Answer: D. (a), (b), (c) & (d)
Solution:According to section-17 of the Income Tax Act 1961, 'salary' includes several components that constitute the total remuneration received by an employee. These components include:
(a) Wages: Basic day-to-day earnings paid to an employee.
(b) Perquisite: Benefits or perks provided by the employer that are above and beyond the wages or salaries. These could be in various forms like rent-free accommodation, cars, etc.
(c) Profits in lieu of salary: This includes any compensation due to or received by an employer from an employer or former employer, if not in pursuance of his employment.
(d) Compensation on termination of employment: This includes any payments due to termination, such as severance pay or compensation for loss of office. These elements collectively make up what is legally recognized as salary for tax purposes under the Income Tax Act, covering not only the direct payments but also additional benefits and compensations.

48. Which of the following are the assumption underlying MM Theory of capital structure?

(a) Perfect Capital Market
(b) Heterogeneous Expectations
(c) Absence of Taxes
(d) 100% Dividend Payout
(e) Equivalent Risk Class
Choose the correct answer from the options given below:

Correct Answer: A. (a), (c) & (e) only
Solution:The assumptions underlying the Modigliani-Miller (MM) Theory of capital structure are critical to understanding their conclusions about the irrelevance of capital structure in a perfect market. The assumptions include:
(a) Perfect capital market: This implies that there are no transaction costs, all information is freely available to all market participants, and there are no restrictions on the buying or selling of securities.
(c) Absence of taxes: The MM theory assumes that there are no tax advantages to debt over equity financing.
(e) Equivalent risk class: Companies are compared only if they are in equivalent risk classes or have business risks that are similar. These assumptions ensure that the theory's core idea, that the value of a firm is independent of its capital structure, holds under ideal conditions. Assumptions about heterogeneous expectations, 100% dividend payout do not directly support the foundational ideas of MM theory.

49. According to Proposition II of ModiglianiMiller theory of capital structure, which of the following statement is true?

Correct Answer: D. Rate of return expected by shareholders increases with financial leverage.
Solution:According to Proposition II of the Modigliani-Miller theory of capital structure, the expected rate of return on equity (cost of equity) increases linearly as financial leverage (debt/equity ratio) increases. This relationship reflects the higher risk perceived by shareholders as more debt is used to finance the firm's operations, requiring a higher return to compensate for the increased risk. This theory essentially holds that while leverage does not change the total value of the firm (Proposition I), it does affect the cost of equity.

50. Which organisational structure promotes control and co-ordination within a department because of similarity in the tasks being performed?

Correct Answer: B. Functional Structure
Solution:The functional structure is an organizational design that groups together employees who perform similar tasks or processes. This structure is known for promoting control and coordination within departments due to the similarity in tasks being performed. Each department specializes in a particular function, such as marketing, finance, or production, which allows for efficiencies and expertise development specific to each function. This organizational structure enhances the ability to monitor and direct efforts within a department effectively, leading to improved performance in specific functional areas.