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Economics (UGC/NET Paper II & III)

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Who propounded Mega-marketing?

  1. Mc Aurthy

  2. Philip Kotler

  3. Sheth

  4. Peter F. Drucker


Correct Option: B
Explanation:

Mega-marketing is a term coined by Philip Kotler, to describe the type of marketing activity required when it is necessary to manage elements of the firm's external environment (governments, the media, pressure groups, etc.) as well as the marketing variables. Kotler suggests that two more Ps must be added to the marketing mix: public relations and power.

On-line marketing is associated with

  1. segmentation

  2. product life cycle

  3. distribution

  4. packing


Correct Option: C
Explanation:

 On-line marketing uses various tools and methologies for promoting and distributing products and services through internet.

Relationship marketing relates to

  1. one-time purchase

  2. two-time purchase

  3. repeat purchase

  4. continuous purchase


Correct Option: C
Explanation:

Relationship marketing focuses on customer loyalty and long-term customer engagement. The goal of relationship marketing is to create strong, even emotional, customer connections to a brand that can lead to repurchase by existing customers, free word-of-mouth promotion and information from customers that can generate leads.

Modern marketing concept emphasises on

  1. sales maximisation

  2. customer satisfaction

  3. profit maximisation

  4. wealth maximisation


Correct Option: B
Explanation:

 The modern marketing concept has shifted its focus from profit maximisation to customer satisfaction maximisation.

Penetration price is

  1. charging high price

  2. charging low price

  3. charging competitive price

  4. none of the above


Correct Option: B
Explanation:

 Penetration pricing is the practice of offering a low price for a new product or service during its initial offering in order to attract customers away from competitors.

Non-performing Advance means

  1. Non-functional assets

  2. Obsolete assets

  3. Assets transferred to company liquidator

  4. Loans becoming overdue beyond 90 days


Correct Option: D

Right shares carry preferential rights as regards to

  1. payment of retained earnings

  2. payment of dividend

  3. repayment of capital in the event of winding up of the company

  4. none of the above


Correct Option: D
Explanation:

 Right shares carry preferential rights for existing shareholders to buy additional shares in the company.

Capital structure designing has nothing to do with

  1. profitability

  2. solvency

  3. flexibility

  4. transferability


Correct Option: B
Explanation:

 The factors to be considered while designing capital structure are risk, return, flexibility, transferability, capacity, control, agreement.

Which of the following is not a source of short-term finance?

  1. Trade Credit

  2. Term Loan

  3. Commercial papers

  4. All of the above


Correct Option: B
Explanation:

 A term loan is repaid in regular payments over a set period of time. Term loans usually last between one and ten years.

Selection means

  1. elimination

  2. testing

  3. recruitment

  4. none of the above


Correct Option: D
Explanation:

Selection is the process of interviewing and evaluating candidates for a specific job and selecting an individual for employment based on certain criteria.

What of the following is not an operative function of Human Resource Management?

  1. Maintenance

  2. Development

  3. Procurement

  4. None of the above


Correct Option: D
Explanation:

 All the above mentioned functions are operative functions of Human Resource Management.

Which method is used to determine wage differentials?

  1. Merit rating

  2. Job design

  3. Job evaluation

  4. None of the above


Correct Option: C
Explanation:

 A job evaluation is a systematic way of determining the worth of a job in relation to other jobs in an organization. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure. Hence, job evaluation can be used to determine wage differential.

Social security benefit includes

  1. annual bonus

  2. non-financial incentives

  3. old age pension

  4. none of the above


Correct Option: C
Explanation:

Social Security Benefits are the monetary benefits received by retired workers who have paid in to the Social Security system during their working years.

In 2005-06, which of the following banks earned the highest return on assets?

  1. Private Sector Banks

  2. Foreign Banks

  3. Public Sector Banks

  4. Scheduled Commercial Banks


Correct Option: C

Performance appraisal relates to

  1. 360 degrees appraisal

  2. open-door method

  3. autocratic method

  4. all of the above


Correct Option: A
Explanation:

A 360 degree appraisal is a type of employee performance review in which subordinates, co-workers, and managers all anonymously rate the employee. Hence, performance appraisal relates to 360 degrees appraisal.

The first Development Bank IFCI was established in

  1. 1948

  2. 1947

  3. 1949

  4. 1950


Correct Option: A
Explanation:

  The Industrial Finance Corporation of India (IFCI) was established on 1 July 1948.

Which of the following provides financial aid to the developing countries of Asia?

  1. Association of South East Asian Nations

  2. International Development Association

  3. Asian Development Bank

  4. None of the above


Correct Option: C
Explanation:

 The Asian Development Bank is a regional development bank established on 19 December 1966, maintains 31 field offices around the world established to promote social and economic development in Asia.

 “Happiness Index” or “Happy Planet Index” has been evolved jointly by the “New Economic Foundation” and “Friends of Earth”. Both are located in

  1. U.K.

  2. U.S.A.

  3. Australia

  4. Europe


Correct Option: A

The merger of ______________ and ______________ was the first M and A activity after liberalisation.

  1. Times Bank and HDFC Bank

  2. New Bank of India and Punjab National Bank

  3. ICICI and ICICI Bank

  4. GTB and Oriental Bank of Commerce


Correct Option: C

The amount of gold, reserve currencies and special drawing rights available for the finance of international trade is known as _________

  1. International Liquidity

  2. Special Drawing Rights

  3. International Monetary Fund

  4. None of the above


Correct Option: A
Explanation:

The term 'international liquidity' connotes the world supply of reserves of gold and currencies which are freely usable internationally, such as dollars and sterling, plus facilities for borrowing these.

'International Trade Theory' was the contribution of

  1. Bertic Ohlin

  2. Arthur Okun

  3. Adam Smith

  4. None of the above


Correct Option: A

The number of approved stock exchanges in India is

  1. 21

  2. 24

  3. 18

  4. 15


Correct Option: A

Match the items of List - I with the items in List -II. List - I List - II (a) Capital gearing ratio (i) Profitability (b) Fixed assets turnover (ii) Short-term solvency (c) Return on equity (iii) Activity (d) Acid test (iv) Long-term solvency

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

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

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

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


Correct Option: A
Explanation:

Capital gearing ratio compares owner's equity to borrowed funds. It measures long term solvency of the firm. Activity ratios are accounting ratios that measure a firm's ability to convert different accounts within its balance sheets into cash or sales.  Fixed assets turnover ratio is one of the most popular activity ratio. Return on equity (ROE) is the amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. The acid-test ratio is a strong indicator of whether a firm has sufficient short-term assets to cover its immediate liabilities. 

The Double Taxation Avoidance Convention (DTAC) pact was signed between

  1. India and China

  2. India, Serbia and Montenegro

  3. Australia and China

  4. None of the above


Correct Option: B

Which of the following is not matched with its name?

  1. ASEAN : Economic co-operation amongst all Asian countries

  2. IMF : To remove unfavourable balance of payment and to provide financial assistance

  3. WTO : Does not allow quantitative restrictions on trade

  4. SAARC : Encourages trade between South Asian Countries


Correct Option: A
Explanation:

ASEAN aims include accelerating economic growth, social progress, and sociocultural evolution among its members, alongside protection of regional stability as well as providing a mechanism for member countries to resolve differences peacefully.

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