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

Total Questions: 100

71. A firm wants to launch a new brand of television and refrigerator. The firm conducted a survey and found that 60% of the households have television, 65% have a refrigerator and 35%, both a television and a refrigerator. If a household is randomly selected, what is the probability that the household has either a television or refrigerator?

Correct Answer: B. 0.90
Solution:The probability that a household has either a television or a refrigerator is calculated using the formula for the union of two events in probability:Thus, the probability that a randomly selected household has either a television or a refrigerator is 0.90, or 90%.

72. Which of the following capital budgeting Techniques follows the discounting criteria?

(a) Net Present Value
(b) Benefit-cost Ratio
(c) Accounting Rate of Return
(d) Internal Rate of Return
(e) Payback Period
Choose the correct answer from the options given below:

Correct Answer: C. (a), (b), (d) only
Solution:Capital budgeting techniques that follow the discounting criteria consider the time value of money. These techniques are:
(a) Net Present Value (NPV): It calculates the difference between the present value of cash inflows and outflows, taking the time value of money into account.
(b) Benefit-Cost Ratio (BCR): Also called profitability index, it calculates the ratio of the present value of benefits to the present value of costs, using discounting.
(d) Internal Rate of Return (IRR): This method calculates the discount rate at which the net present value of cash flows equals zero, considering time value.
Techniques such as Accounting Rate of Return (c) and Payback Period (e) do not use discounting and are therefore excluded.

73. Which of the following is NOT a part of micro environment?

Correct Answer: D. Technology
Solution:Technology is not considered as a part of the micro-environment. The microenvironment comprises factors that are close to the company and directly affect its ability to serve customers, including: Suppliers: Provide inputs for production.
Customers: Form the target market for the company's goods or services.
Competitors: Entities competing for the same market. Technology, on the other hand, is part of the macro-environment, influencing industries broadly and affecting operations, innovation, and productivity across multiple sectors.

74. Which of the following are different types of dumping?

(a) Persistent dumping
(b) Predatory dumping
(c) Sporadic dumping
(d) Nomadic dumping
Choose the correct answer from the options given below:

Correct Answer: B. (a), (b) & (c) only
Solution:The different types of dumping in international trade are:
(a) Persistent Dumping: Continuous selling of goods in a foreign market at lower prices than in the home market to establish or maintain market dominance.
(b) Predatory Dumping: Selling goods at very low prices to eliminate competition and gain monopoly power in the foreign market.
(c) Sporadic Dumping: Selling surplus goods at reduced prices in a foreign market to avoid losses or stockpiling. "Nomadic dumping" is not a recognized type of dumping and is therefore excluded.

75. What is the privilege of a holder in due course?

Correct Answer: B. Instrument cleansing of all defects.
Solution:A holder in due course enjoys significant privileges under the Negotiable Instruments Act. The most important privilege is that the instrument in their possession is cleansed of all prior defects in title or irregularities, ensuring its validity and enforceability. This means:

The holder in due course can claim the amount due under the instrument without being affected by any disputes, fraud, or irregularities that may have existed in prior transactions.

This privilege protects the holder and ensures smooth transferability of negotiable instruments in financial transactions. Thus, the holder in due course has a legally protected right to enforce the instrument without concerns about prior defects.

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

List-IList-II
(a) Organisational StructureI. Refers to the delegation of authority throughout the organisation
(b) Span of ManagementII. Groups activities on the basis of products.
(c) Divisional StructureIII. Refers to the number of subordinates under a supervisor.
(d) DecentralisationIV. The framework within which managerial and operating tasks are operated.

Choose the correct answer from the options given below:

Correct Answer: A.
Solution:The correct matching of List-I with List-II is as follows:
(a) Joint occurrence of Events (III): Compound Event refers to the occurrence of multiple events together, such as the probability of one or more events occurring simultaneously.
(b) Outcome of an experiment consisting of all possible events (I): Collective Exhaustive Events include all possible outcomes of an experiment, ensuring that no possibility is excluded.
(c) One of the events cannot be expected to occur in preference over the other (II): Equally Likely Events imply that all events have the same probability of occurring.
(d) The occurrence of one event implies that the other cannot occur (IV): Mutually Exclusive Events occur when the occurrence of one event precludes the occurrence of the other.

77. Which of the following can file a petition for winding up of a company?

(a) Shareholders
(b) The creditor or prospective creditors
(c) The legal heirs
(d) The person authorised by the central government
Choose the correct answer from the options given below:

Correct Answer: D. (a), (b) & (d) only
Solution:A petition for winding up of a company can be filed by:
(a) Shareholders: Members of the company have the right to petition for winding up under specific circumstances, such as the company being unable to carry out its objectives.
(b) Creditors or prospective creditors: They can file a petition if the company is unable to pay its debts or fulfill obligations, thereby jeopardizing creditors' interests.
(d) The person authorized by the central government: Under certain regulatory or compliance violations, an authorized representative of the government may petition for winding up to safeguard public interest.
Legal heirs (c) cannot independently file for winding up unless they represent a shareholder or creditor.

78. Arrange the following anti-dumping process in proper sequence.

(a) Initiation
(b) Preliminary screening
(c) Rejection under de minimis stantiated information etc.
(d) Exporting country allowed to modify practice.
(e) Preliminary findings followed by final finding and measures.
Choose the correct answer from the options given below:

Correct Answer: A. (b), (c), (a), (d), (e)
Solution:The correct sequence for the antidumping process is:
(b) Preliminary Screening: Initial evaluation to assess the legitimacy of the complaint and whether the information provided meets the necessary criteria for further investigation.
(c) Rejection under deminimis, unsubstantiated information, etc.: If the evidence does not meet the required threshold, the case may be rejected at this stage.
(a) Initiation: If the preliminary screening supports the case, formal anti-dumping proceedings are initiated.
(d) Exporting country allowed to modify practice: Before concluding, the exporting country is given an opportunity to adjust its trade practices.
(e) Preliminary findings followed by final findings and measures: A detailed investigation leads to preliminary findings, and based on further review, final measures are implemented to counteract dumping.

79. A company has Return on Assets (ROA) of 10% and profit margin of 2%. Compute the total assets turnover.

Correct Answer: B. 5%
Solution:To calculate the Total Asset Turnover:Thus, the Total Asset Turnover is 5 (or 500%), indicating that for every unit of assets, the company generates five times the revenue.

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

List-IList-II
(a) Informal organisationI. Grouping of jobs of similar nature
(b) Formal organisationII. Interaction among people at work gives rise to a network of social relationship among employees
(c) Divisional structureIII. The organisation structure comprises separate business units
(d) Functional structureIV. Specifies clearly the boundaries of authority and responsibility

Choose the correct answer from the options given below:

Correct Answer: D.
Solution:The correct matching of List-I with List-II is:
(a) Informal Organisation (II): Refers to the network of social relationships that arise spontaneously among employees at the workplace, outside the formal structure.
(b) Formal Organisation (IV): Specifies clearly the boundaries of authority and responsibility within the organization, based on hierarchical structures.
(c) Divisional Structure (III): This organizational structure comprises separate business units or divisions that focus on distinct product lines, markets, or geographies.
(d) Functional Structure (I): Groups jobs of similar nature together, focusing on specialized functions like marketing, finance, or production.
This matching emphasizes how organizational types and structures cater to different management needs and operational efficiencies.