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

Total Questions: 100

81. A company prices one litre bottle of its mineral water at₹ 20 but 100 ml of the same water in a moisturizer spray for *50. This is an example of which one of the following pricing practices?

Correct Answer: C. Product-form Pricing
Solution:Product-form pricing is a pricing strategy where a company prices different versions or forms of the same product differently, not based on cost differences but on the perceived value of the product form.

In this case, the company sells 1 litre of mineral water for ₹20 and 100 ml of the same water in a moisturizer spray for 50. The significant price difference arises not from the cost of production but from the perception of the product's utility, convenience, and additional packaging in the moisturizer spray form.

This practice highlights how companies leverage the perceived value of different product forms to set varied price points, catering to different customer needs or use cases.

82. Which of the following are the schemes promoted by NABARD?

(a) Kisan Credit Card (KCC)
(b) Capital Investment Subsidy Scheme
(c) Special Economic Zone Scheme
(d) Rural Innovation Fund
(e) Tribal Development Fund
Choose the correct answer from the options given below:

Correct Answer: C. (a), (b), (d) & (e) only
Solution:The following are schemes promoted by NABARD (National Bank for Agriculture and Rural Development):
(a) Kisan Credit Card (KCC): A scheme that provides timely and adequate credit to farmers for their agricultural and other needs.
(b) Capital Investment Subsidy Scheme: Encourages agricultural and rural development by supporting capital investments in infrastructure and technology.
(d) Rural Innovation Fund: Focuses on fostering innovation in rural areas to address unique challenges in agriculture, rural development, and livelihoods.
(e) Tribal Development Fund: Provides financial assistance to tribal communities for sustainable development and empowerment.
The Special Economic Zone (SEZ) Scheme (c) is not promoted by NABARD; it is primarily overseen by the Ministry of Commerce and Industry.

83. Which of the following are the principal functions of UNCTAD?

(a) To promote International trade with a view to accelerating economic development.
(b) To assist economic development of developing countries by promoting private enterprises.
(c) To negotiate multinational trade agreements.
(d) To make proposals for putting its principles and policies into effect.
Choose the correct answer from the options given below:

Correct Answer: D. (a), (c) & (d) only
Solution:The principal functions of UNCTAD (United Nations Conference on Trade and Development) include:
(a) To promote international trade with a view to accelerating economic development: UNCTAD facilitates trade, especially for developing countries, to boost their economic growth.
(c)  To negotiate multinational trade agreements: UNCTAD provides a platform for negotiating trade agreements that align with global trade principles while addressing developing countries needs.
(d) To make proposals for putting its principles and policies into effect: It develops actionable recommendations to implement its policies and principles for trade and development.
Promoting private enterprises (b) is not a core function of UNCTAD, as its focus is on facilitating trade and development through international cooperation.

84. Arrange the following steps of securitisation in a correct sequence.

(a) Forming SPV
(b) Transfer to SPVA
(c) Credit Enhancement
(d) Seasoning
(e) Issuance of securities
Choose the correct answer from the options given below:

Correct Answer: C. (d), (c), (a), (b), (e)
Solution:The correct sequence of the securitization process is:
(d) Seasoning: Initial assessment of the assets to ensure that they are seasoned, meaning they have performed consistently over a period of time.
(c) Credit Enhancement: Measures taken to improve the creditworthiness of the securitized assets, such as guarantees or reserve funds.
(a) Forming SPV: Creating a Special Purpose Vehicle (SPV) to handle the securitized assets, isolating them from the originating entity's risks.
(b) Transfer to SPV: The underlying assets are transferred to the SPV to facilitate securitization.
(e) Issuance of Securities: The SPV issues securities backed by the underlying assets to investors, generating liquidity for the originating entity.
This process ensures the efficient conversion of assets into tradable securities.

85. Assessment made not only from inside the company but from groups outside the organisation is known as:

Correct Answer: B. 720-Degree Feedback
Solution:720-degree feedback is an advanced form of performance evaluation where the assessment is conducted not only internally (within the organization) but also externally (from groups outside the organization). This approach includes feedback from:
Internal Sources: Supervisors, peers, subordinates, and the employee themselves.
External Sources: Customers, suppliers, and other stakeholders who interact with the employee. This comprehensive method provides a holistic view of the employee's performance, considering multiple perspectives. It is particularly useful for leadership roles or roles requiring significant external interaction, enabling organizations to develop employees effectively while addressing all stakeholder expectations.

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

List-I (Trader)List-II (Function/Activity)
(a) HedgerI. Buying and selling shares quickly
(b) SpeculatorII. Reducing investment Risk
(c) ArbitrageurIII. Taking increased Risk willingly
(d) ScalperIV. Taking advantage of the mismatch of the prices in two markets

Choose the correct answer from the options given below:

Correct Answer: C.
Solution:The correct matching of List-I with List-II is
(a) Hedger (II): Hedgers aim to reduce investment risk by using financial instruments like derivatives to offset potential losses in the market. For example, farmers hedge the prices of their crops to protect against fluctuations. (b) Speculator (III): Speculators willingly take increased risk by betting on price changes in financial markets to earn profits. They play a significant role in providing liquidity to the market.
(c) Arbitrageur (IV): Arbitrageurs exploit price mismatches in two or more markets by buying in one market and selling in another for a profit, helping in price correction across markets.
(d) Scalper (I): Scalpers engage in highfrequency trading, buying and selling shares quickly to earn small profits on each trade. They rely on market volatility for their gains.

87. The management of Vibgyor Fabrics subscribes to the NOI approach and believes that its cost of debt and overall cost of capital will remain at 9% and 12% respectively. If the debt-equity ratio is 0.8, what is the cost of equity?

Correct Answer: C. 14.4%
Solution:To calculate the cost of equity under the Net Operating Income (NOI) approach, the formula used is:Thus, the cost of equity is 14.4%.

88. Which of the following section of Companies Act, 2013 deals with amalgamation, absorption and reconstruction?

Correct Answer: (e) (*)

89. Who among the following has given this definition of CSR? "Wealth created from society has to be ploughed back into society."

Correct Answer: C. Mahatma Gandhi
Solution:Mahatma Gandhi defined Corporate Social Responsibility (CSR) as: "Wealth created from society has to be ploughed back into society." This definition emphasizes the ethical responsibility of businesses to give back to society. Gandhi advocated for trusteeship, where businesses act as trustees of societal wealth, promoting equitable distribution and welfare. This aligns CSR with the concept of serving society's needs and enhancing overall development, particularly for the disadvantaged sections.

90. Which of the following are the price-adaption strategies?

(a) Price discounts and allowances
(b) Target return pricing
(c) Geographical pricing
(d) Differentiated pricing
(e) Going rate pricing
Choose the correct answer from the options given below:

Correct Answer: C. (a), (c) & (d) only
Solution:Price adaptation strategies are techniques that adjust prices based on market conditions, customer segments, or geographical locations. The strategies include:
(a) Price discounts and allowances: These offer price reductions to incentivize purchases or clear inventory.
(c) Geographical pricing: Adjusting prices based on geographical factors like transportation costs or regional market conditions.
(d) Differentiated pricing: Charging different prices to different customer groups or markets based on perceived value or demand elasticity.
"Target return pricing (b)" and "Going rate pricing (e)" are not price adaptation strategies but belong to pricing objectives and competition-based pricing, respectively.