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Financial Management (Paper II & III UGC/NET)

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Post purchase dissatisfaction in marketing is known as:

  1. Caveat emptor

  2. Cognitive dissonance

  3. Brand III loyalty

  4. None of these


Correct Option: B

Attrition is related to:

  1. Job Description

  2. Job Evaluation

  3. Resignation/Termination

  4. Promotion


Correct Option: C

The firm under perfect competition will be in short-run equilibrium when

  1. Rising marginal cost is equal to the minimum average cost.

  2. Marginal revenue is equal to rising marginal cost.

  3. Average revenue is equal to average cost.

  4. Marginal revenue is equal to the falling marginal cost.


Correct Option: B

Which of the following is correct statement?

  1. Under perfect competition, a firm determines its price where AR = MR

  2. In perfect competitive industry, a firm is in equilibrium in the short run only when its AC = AR = MR = MC

  3. The short-run supply curve has a negative slope

  4. A firm is price-taken under perfect competition


Correct Option: D

The Commercial Banks in India are governed by

  1. Reserve Bank of India Act, 1934

  2. Indian Company Act, 1956

  3. Indian Banking Regulation Act, 1949

  4. Securities and Exchange Board of India Act, 1992


Correct Option: C

The Foreign Exchange Management Act (FEMA) was implemented in the year:

  1. 1996

  2. 1997

  3. 1998

  4. 1999


Correct Option: D

The profits calculated by marginal costing and absorption costing arc different because of:

  1. Capital and revenue

  2. Opening Stock

  3. Valuation of stock

  4. Closing stock


Correct Option: D

Which one is not the part of, Migration to new capital adequacy framework based on the three pillar approach, namely:

  1. Minimum capital requirements

  2. Supervisory review

  3. Market Discipline

  4. Book keeping


Correct Option: D

Which of the following statement is true?

  1. The currency notes issued by RBI are legal tender throughout the world

  2. The treasury bills are sold by the RBI for raising its working capital

  3. All commercial banks, including those owned by Government, need a licence from the RBI to do banking business

  4. The RBI is a banker to both central and state governments


Correct Option: D

Who coined the expression “Marketing Mix”?

  1. Henry Fayol

  2. James Culliton

  3. Peter Drucker

  4. Abraham Maslow


Correct Option: B

In balance of payment accounts, all goods exported and imported are recorded in _____.

  1. Capital Account

  2. Visible Account

  3. Invisihic Account

  4. Merchandise Account


Correct Option: B

Which of the following relates to training workers?

  1. Job rotation

  2. Induction

  3. Vestibule

  4. Task


Correct Option: A

The Twelfth Finance Commission was appointed by:

  1. President of India

  2. Prime Minister of India

  3. Parliament

  4. Council of Ministers


Correct Option: A

If total assets = Rs. 12, 00, 000, sales = Rs. 24, 00, 000, total expenses = Rs. 21, 40, 000 and normal rate of return = 12%, find out residual income:

  1. Rs. 1, 44, 000

  2. R. 2, 60, 000

  3. Rs. 1, 16, 000

  4. Rs. 2, 16, 000


Correct Option: C

The concept of M.B.O. originally came from:

  1. F.W. Taylor

  2. A.H. Maslow

  3. Henry Fayol

  4. Peter F. Drucker


Correct Option: D

In Oligopoly market kinked demand curve explains:

  1. Collusion among rival firms

  2. Average variable cost curves

  3. Short run average cost curve

  4. Long run average cost curve


Correct Option: A

Globalization is a term used to describe the process of removal of restrictions on which of the following?

  1. Foreign Trade

  2. Investment

  3. A and B above

  4. None of these


Correct Option: C

What stage of the product Life-cycle are pricing decisions most complex?

  1. Introductory

  2. Growth

  3. Maturity

  4. Decline


Correct Option: C

X, Y and Z are three partners sharing profits and losses in the ratio, 10 : 6 : 2. A was admitted for 1/10th share. The new profit sharing ratio will be:

  1. 10 : 6 : 2 : 1

  2. 5 : 3 : 2 : 1

  3. 5 : 3 : 1 : 1

  4. 10 : 6 : 2 : 4


Correct Option: B

In a formal organisational structure authority flows:

  1. Upward

  2. Downward

  3. Horizontal

  4. None of the above


Correct Option: B

Which of the following is not a function of a Rural Bank?

  1. To accept deposits

  2. To waive loans

  3. To grant advances

  4. To supply inputs to farmers


Correct Option: D

The basic objective of Financial Management is:

  1. Maximization of profits.

  2. Profit Planning of the organization.

  3. Maximization of shareholders' wealth.

  4. Ensuring financial discipline in the organization.


Correct Option: C

Match the following:

 
List - I
List - II
(a) Market segmentation
1. Pricing high of a new product initially,
(b) Skimming price
2. Process of disaggregating a market into a number of sub-markets.
(c) Multilevel marketing
3. Translation of the marketing plan into marketing performance
(d) Sales management
4. Modified version of direct marketing.
  1. (a)-(2), (b)-(1), (c)-(4), (d)-(3)

  2. (a)-(3), (b)-(1), (c)-(2), (d)-(4)

  3. (a)-(1), (b)-(2), (c)-(3), (d)-(4)

  4. (a)-(4), (b)-(2), (c)-(3), (d)-(1)


Correct Option: A

The balance-sheet is related to the income statement in the same way that:

Directions: Read the following passage and answer the given question.

Accounting is the process of identifying, measuring and communicating economic information to permit informed judgements and decisions by the users of the information, It primarily focusses on measurement, analysis, interpretation and use of information, As an information system, accounting links an information source, a channel of communication and set of receivers. Accounting system should be designed to classify financial information on a basis suitable for decision-making purposes and to process the tremendous quantities of data efficiently and accurately. Financial accounting is concerned with providing information to external users and it is oriented towards the preparation of final statements which summarises the results of operations for selected periods of time and show the financial position of business at particular date. Management accounting is concerned with providing information to managers to carry out their responsibilities and functions such as planning, execution, control and decision- making. The end product of the financial accounting process is a set of reports called financial statement, such as, profit and loss account, balance-sheet and statement of changes in financial position. Profit & loss account shows the results of operations for a period of time, balance-sheet shows financial position on certain date and statement of changes in financial position shows where the financial resources have come and where they have gone.

  1. A point in time is related to a period of time

  2. A period of time is related to a point in time

  3. A point in time is related to another point

  4. A period of time period of time is related to another


Correct Option: A

The properties own by a business enterprise are called:

Directions: Read the following passage and answer the given question.

Accounting is the process of identifying, measuring and communicating economic information to permit informed judgements and decisions by the users of the information, It primarily focusses on measurement, analysis, interpretation and use of information, As an information system, accounting links an information source, a channel of communication and set of receivers. Accounting system should be designed to classify financial information on a basis suitable for decision-making purposes and to process the tremendous quantities of data efficiently and accurately. Financial accounting is concerned with providing information to external users and it is oriented towards the preparation of final statements which summarises the results of operations for selected periods of time and show the financial position of business at particular date. Management accounting is concerned with providing information to managers to carry out their responsibilities and functions such as planning, execution, control and decision- making. The end product of the financial accounting process is a set of reports called financial statement, such as, profit and loss account, balance-sheet and statement of changes in financial position. Profit & loss account shows the results of operations for a period of time, balance-sheet shows financial position on certain date and statement of changes in financial position shows where the financial resources have come and where they have gone.

  1. Assets

  2. Liabilities

  3. Capital

  4. Owner's Equity


Correct Option: A
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