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Commerce Questions and Answers for Competitive Exams | Commerce Quiz Set 22

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Free Download as PDF Commerce Quiz Questions and Answers for Competitive Exams or solved MCQs with answers. These quiz objective questions are helpful for competitive exams SSC, UPSC, IAS, IPS, CDS, NDA, Railways or RRB, psc exams of Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Orissa, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttar Pradesh, West Bengal, Chhattisgarh, Uttarakhand, Jharkhand, Telangana etc.
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(1) Which of the following is not a reason for a firm to lose its market share to competitors ?
[1] A product/model is perceived by the target customer group as satisfying needs.
[2] Customers not being covered by the company’s sales force and distribution outlets.
[3] Customers may have been lost to competitors due to poor service by the firm or its sales personnel or product becoming obsolete or more expensive.
[4] All the above are correct reasons for given condition.
Answer: A product/model is perceived by the target customer group as satisfying needs.
(2) An elaborated version of the idea expressed in meaningful consumer term is called
[1] Product image
[2] Product idea
[3] Prototype
[4] Product concept
Answer: Product concept

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(3) Debt financing is a cheaper source of finance because of
[1] Time value of money
[2] Rate of interest
[3] Dividends are not payable to lenders
[4] Tax deductibility of interest
Answer: Tax deductibility of interest
(4) Which of the following is not true with reference to capital budgeting?
[1] Capital budgeting is related to asset replacement decisions
[2] Cost of capital is equal to minimum required rate of return.
[3] Timing of cash flows is relevant.
[4] Existing investment in a project is not treated as sunk cost.
Answer: Existing investment in a project is not treated as sunk cost.
(5) Which of the following statements is not correct ?
[1] The cost of capital is required rate of return to ascertain the value of the firm.
[2] Different sources of funds have a specific cost of capital related to that source only.
[3] Cost of capital does not comprise any risk premium.
[4] Cost of capital is basic data for NPV technique.
Answer: Cost of capital does not comprise any risk premium.
(6) Which of the following is not the quality of human resources in any organization ?
[1] Their behaviour to stimuli is often inconsistent and unpredictable.
[2] They depreciate with passage of time in terms of skills.
[3] They are heterogeneous.
[4] Retaining qualified human resources is a challenge for managers.
Answer: They depreciate with passage of time in terms of skills.
(7) A statement containing items such as job title, location, summary, duties, materials used, working conditions etc., is called
[1] Job specification
[2] Job evaluation
[3] Job description
[4] Job analysis
Answer: Job description
(8) Which organizational analysis method is used, among the following, to develop various efficiency indices relating to contribution of human capital in meeting the organizational goals ?
[1] Objectives analysis
[2] Resource utilization analysis
[3] Task analysis
[4] Organizational climate analysis
Answer: Resource utilization analysis
(9) In which year, IFCI Act was amended in order to make it possible to provide assistance, inter alia, for medical, health or other allied services ?
[1] 1960
[2] 1973
[3] 1970
[4] 1986
Answer: 1986
(10) SIDBI was set up as a subsidiary of IDBI to
[1] Take over the functions of small business financing of IDBI.
[2] Take over the venture capital operations of ICICI.
[3] Reconstruct and rehabilitate the sick and closed industrial units financed by IDBI.
[4] Facilitate, finance and promote India’s Foreign trade.
Answer: Take over the functions of small business financing of IDBI.
(11) Letters of credit, Guarantees, Forward Contracts etc., come under which one of the following ?
[1] Liabilities of a bank
[2] Assets of a bank
[3] Foreign exchange items of a bank
[4] Off-balance sheet items of a bank
Answer: Off-balance sheet items of a bank
(12) Which of the following is not regulated by The Competition Act, 2002 ?
[1] Abuse of dominant position
[2] Anti-competitive agreements
[3] Medical negligence
[4] Predatory pricing
Answer: Medical negligence
(13) If bonus shares are issued out of pre- acquisition profit, it will have
[1] Direct effect on the Consolidated Balance Sheet
[2] No effect on the Consolidated Balance Sheet
[3] No effect on Net Profit
[4] None of the above
Answer: No effect on the Consolidated Balance Sheet
(14) A standard which can be attained under the most favourable working conditions is called
[1] Attainable Standard
[2] Basic Standard
[3] Current Standard
[4] Ideal Standard
Answer: Ideal Standard
(15) 11. Which of the following ratios are taken into consideration by a banker before sanctioning the loan
[1] Proprietory Ratio
[2] Stock-Turnover Ratio
[3] Debt-Equity Ratio
[4] All of the above
Answer: Debt-Equity Ratio

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