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Financial Management (Paper II & III UGC/NET)

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Which is an incorrect statement?

  1. The issue of Bonus shares is subject to sanction from the SEBI

  2. The prior approval of capitalisation of reserves upto Rs.1 crore is totally exempted

  3. Bonus issues beyond the ratio of 1 : 1 is not permitted

  4. Partly paid equity shares are issued as bonus shares


Correct Option: D

Which of the following is a document of the title of sale of goods?

  1. Certificate of Origin

  2. Letter of Credit

  3. Bill of Lading

  4. Bill of Entry


Correct Option: C

Consider the following steps in the decision- making process; and select the correct sequence: (i) Defining the problem (ii) Considering alternatives (iii) Considering limiting factors (iv) Selection of the best alternative and implementation

  1. (i), (ii), (iii), (iv)

  2. (iii), (i), (iv), (ii)

  3. (i), (iv), (iii), (ii)

  4. (i), (iii), (iv), (ii)


Correct Option: A

India abolished the quantitative restrictions on imports of 1429 items in 2000 and 2001 as per the commitment to which of the following?

  1. South Asian Free Trade Association (SAFTA)

  2. General Agreement on Tariffs and Trade (GATT)

  3. World Trade Organisation (WTO)

  4. Non-Aligned Movement


Correct Option: C

Statement - I: The heading for columns and rows are called caption and stub respectively. Statement - II: Sturge's Rule is used to decide the nature of manifold classification. Which of the following is correct?

  1. Both I and II are false.

  2. Both I and II are true.

  3. I is Lure and II is false.

  4. I is false and II is true.


Correct Option: B

Needs for goods and services are more homogenous in:

  1. Industrial market

  2. Consumer market

  3. Domestic market

  4. None of these


Correct Option: A

Which one of the following is correct? (i) A ratio is an arithmetical relationship of one number to another number. (ii) Liquid ratio is also known as acid test ratio. (iii) Rule of thumb for current ratio is 2 : 1. (iv) Debt equity ratio is the relationship between outsiders' fund and shareholders' fund.

  1. All (i), (ii), (iii) and (iv) are correct.

  2. Only (i), (ii) and (iii) are correct.

  3. Only (ii), (iii) and (iv) are correct.

  4. Only (ii) and (iii) are correct.


Correct Option: A

Accounting Standards Board of India was established in the year:

  1. 1970

  2. 1972

  3. 1973

  4. 1977


Correct Option: D

Accounting concepts are based on

  1. Certain assumptions

  2. Certain facts and figures

  3. Certain accounting records

  4. Government guidelines


Correct Option: A

360 degree method relates to:

  1. Performance appraisal

  2. Organisation climate

  3. Employees morale

  4. Retrenchment method


Correct Option: A

The last stage in a grievance redressal procedure is handled by

  1. Union

  2. Voluntary Arbitrator

  3. H.R. Department

  4. Grievance Committee


Correct Option: B

The first Financial Institution set up in India:

  1. IDBI

  2. ICICI

  3. IRBI

  4. IFCI


Correct Option: D

In India, the basic objectives of Monetary Policy is/are:

  1. Price stability and Adequate credit flow

  2. Price control and command on Economy

  3. Price Reduction and Credit Reduction

  4. All of the above


Correct Option: D

The financial management is concerned with the:

  1. Procurement of funds and their effective utilisation

  2. Raising of funds from the market

  3. Management of Working Funds only

  4. Investing funds in the most appropriate assets


Correct Option: A

Which of the following is a correct statement?

  1. Decrease in input prices causes a leftward shift in the supply curve

  2. The desire for a commodity backed by ability and willingness to pay is demand

  3. When income increases, the demand for essential goods increases more than proportionately

  4. The demand for a commodity is inversely related to the price of is substitutes


Correct Option: B

Marketing concept means:

  1. Firms should produce only what their predetermined determined consumers would be willing to buy

  2. Firms should persuade customers to buy what they have produced

  3. The consumers will buy the products which offer them the highest quality

  4. All of the above


Correct Option: D

Which of the following is a measure selective credit control?

  1. Bank rate policy

  2. Moral suasion

  3. Statutory cash reserve ratio

  4. Open market operations


Correct Option: B

A perfectly competitive market in the short run will be in equilibrium where:

  1. MC = AC

  2. MC = MR

  3. MC = Zero

  4. None of these


Correct Option: B

Which one of the following is a Data Base Management System?

  1. MS Access

  2. MS Excel

  3. MS Outlook

  4. None of the above


Correct Option: A

Planning is a process.

  1. Goal oriented

  2. Flexible

  3. Time bound

  4. All of the above


Correct Option: D

Read the following statements: (i) “Working Capital is the amount of funds necessary to cover the Cost of operating the enterprise.” (ii) “Circulating capital means current assets of a company that are changed in the ordinary course of business from one form to another.”

  1. (i) and (ii) both are correct.

  2. (i) and (ii) both are false.

  3. (i) is correct, but (ii) is false.

  4. (i) is false, but (ii) is correct.


Correct Option: C

Which of the following is a relative measure of dispersion?

  1. Standard deviation

  2. Variance

  3. Co-efficient of variation

  4. None of the above


Correct Option: C

In which of the following countries the Industrial Revolution took place first?

  1. France

  2. Germany

  3. England

  4. U.S.A.


Correct Option: C

Match the following two lists of statements:

 
List - I
List - II
(a) When one company purchases another one.
(i) Conglomeration merger
(b) Merger between two companies having no common business areas.
(ii) Consolidation merger
(c) Merger between two companies that sell the same products in different markets.
(iii) Purchase merger
(d) Two companies are bought and combined under new entity.
(iv) Market extension merger
  1. (a)-(i), (b)-(ii), (c)-(iii), (d)-(iv)

  2. (a)-(ii), (b)-(iii), (c)-(i), (d)-(iv)

  3. (a)-(iii), (b)-(i), (c)-(iv), (d)-(ii)

  4. (a)-(iii), (b)-(iv), (c)-(i), (d)-(ii)


Correct Option: C

Which one of the following is the main objective of Unit Trust of India?

  1. To mobilize the savings of high income groups.

  2. To mobilize the savings of low and high income groups.

  3. To mobilize the savings of corporates.

  4. To mobilize the savings of low and middle income groups.


Correct Option: D
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