PGT Commerce Level-3 (HTEТ), Exam 2019

Total Questions: 150

141. Which activity is not included in the Primary Activities of the "Generic Value Chain"?

Correct Answer: C. Price
Solution:

Primary Activities: Five Generic Value Chain Categories:

  • Inbound Logistics: Activities associated with receiving, storing and disseminating inputs to the product, such as material handling, inventory controlling, vehicle scheduling and returns to suppliers.
  • Operations: Activities associated with transforming inputs into the final product form, such as machining, packaging, assembly, equipment maintenance, testing, printing and facility operations.
  • Outbound Logistics: Activities associated with collecting, storing and distributing the product to buyers, such as finished goods warehousing, order processing and scheduling.
  • Marketing and Sales: Activities associated with providing a means by which buyers can purchase the product, such as advertisement, promotion, sales force, channel selection, channel relations and pricing.
  • Service: Activities associated with providing service to enhance or maintain the value of the product, such as installation, repair, training, parts supply and product adjustment.

142. In which sampling method every member or item of the population has an equal chance of selection?

Correct Answer: A. Simple Random Sampling
Solution:

Simple Random Sampling: This is a technique in which sample is so drawn that each and every unit in the population has an equal and independent chance of being included in the sample. Several methods have been adopted for random selection of the sample.
(i) Lottery Method: This is the most popular and simplest method. In this method, all the items of the universe are numbered on separate slips of paper of the same size, shape and colour. They are folded and mixed up in a drum or container.
A blindfold selection is made. The required number of slips are selected for the desired sample size. The selection of items thus depends on chance.
(ii) Table or Random Number: As the lottery methoр cannot be used, when the population is infinite, the alternative is that of using the table of random numbers.
Merits:
1. It is a scientific method.
2. Personal bias is absent.
3. Samples are more representative.
4. Sampling error can be measured.
5. This method is economical.
Demerits:
1. This method requires a complete list of the population.
2. If the size of the sample is small, then it will not be a representative of the population.

143. Job Description and Job Specification are the two different elements of:

Correct Answer: C. Job Analysis
Solution:

Job description and job specification are two separate elements of job analysis.

  • Job description is a systematic description of the duties, responsibilities and other details of a post or task. It describes what must be done, how it must be done and why.
  • Job specification is an important aspect of job analysis. It is an explanation of the minimum skills and requirements a person must have to perform a particular job properly. Job specifications include the level of training, experience, skills, personal characteristics and knowledge.

144. From the following, which 'Act' deals with the provisions for Health, Safety and Welfare of Employees/Workers?

Correct Answer: B. The Factories Act, 1948
Solution:

The Factories Act was passed in this country in the year 1948 with a view to protect and promote the health, safety and welfare of workers employed in factories. The act went through several amendments ever since.
The act deals with administrative issues; lays norms for the employment of workers; and provides for the promotion of health, safety and welfare of workers.

145. Using "Technical Jargon" in communication, is categorized as:

Correct Answer: B. Semantic Barriers
Solution:

Semantic Barriers: Many of our communication problems are semantic in nature, as the same word may convey a different meaning to different people. The use of jargon can also create a barrier to communication. The vocabulary and jargon employed by engineers, statisticians, and skilled mechanics convey little meaning to unskilled and less-educated persons.
Breakdowns in communication, thus, result when the sender does not tailor the message to match the knowledge base of the receiver. Further, some people have a limited inventory of words with which to express themselves. Others complicate the communication process through the use of empty and high-sounding words.

146. If a dividend of 40% is declared on a share of face value of ₹10 having market price ₹50, then the actual return to the investor will be:

Correct Answer: B. 8%

147. What will be the Karl Pearson's Coefficient of Correlation between X and Y as given below?

Correct Answer: D. -1

148. Naveen, Suresh and Tarun are partners sharing profits and losses in the ratio of 5: 3: 2. Suresh retires from the firm and his share was acquired by Naveen and Tarun in the ratio 2: 1. What will be the new profits and losses sharing ratio of Naveen and Tarun?

Correct Answer: D. 7 : 3

149. From the following, which is not a money market instrument?

Correct Answer: C. Preference Share

150. The "Margin of Safety" is:

Correct Answer: A. The excess of budgeted or actual sales over the break-even sales volume
Solution:

Margin of Safety: The concept of margin of safety is very important in the break-even analysis. According to Horngren, "the Margin of safety is the excess of budgeted or actual sales over the break-even sales volume". Margin of safety represents the difference between the actual sales volume and the sales volume at break-even point.
This can be expressed in units or in rupee terms. Thus, Margin of Safety = Actual Sales - Break-Even Sales It can also be calculated and expressed in relative terms, known as the margin of safety ratio. This refers to the margin of safety expressed as a percentage of the actual sales.
Margin of Safety Ratio
A manager may desire to know the margin of safety in actual or planned activity because it indicates the amount by which sales could decrease before losses occur.