Navodaya Vidyalaya Samiti PGT Commerce Solved Papers

Navodaya Vidyalaya Samiti P.G.T. Exam of the year 2014 held on dated 1 June, 2014. We are giving 80 questions of Commerce of this exam with answers.

1. Exhaustive industries also known as-
(A) Genetic Industry (B) Primary Industry
(C) Extractive Industry (D) Manufacturing Industry (Ans : C)

2. Memorandum of association does not contain-
(A) Name of company (B) Registered office
(C) Main objects of company (D) Dividend to be declared (Ans : D)

3. Which of the following relates to sole proprietorship?
(A) Unlimited liability (B) Legal existence of firm separate from owner
(C) Going concern (D) Owner has no control over crucial business decision Ans : (A)

4. Private company is not characterised by-
(A) Independent legal existence (B) Need not to file a prospectus with registrar
(C) Liability of member is unlimited (D) Shares are not freely transferable Ans : (C)

5. Cooperative societies are governed by-
(A) Cooperative Societies Act 1912 (B) Cooperative Societies Act 1995
(C) Cooperative Societies Act 1990 (D) Cooperative Societies Act 1915 (Ans : A)

6. Warehouse used for keeping imported goods not cleared by custom authorities is known as-
(A) Special commodity ware-house (B) Bonded warehouse
(C) Institutional warehouse (D) Public warehouse (Ans : B)

7. ……….is also known as many to one.
(A) ECS Debit (B) ECS Credit
(C) EFT Debit (D) EFT Credit (Ans : A)

8. Principle of Uberrimae fidei implies for-
(A) Insured must try to minimise the loss
(B) Absolute good faith between insured and insurer
(C) Insured must have insurable interest
(D) Insurer is under obligation to give compensation (Ans : B)

9. The acronym UNCTAD is used for-
(A) United Nations Conference on Trade and Development
(B) United Nations Congress on Trade and Development
(C) United Nations Convention on Training and Development
(D) United Nations Convention on Trade and Development (Ans : A)

10. The acronym CRISIL is used for ……….credit rating agency.
(A) Credit Rating Information Service of India Limited
(B) Credit Regulatory Information Service of India Limited
(C) Centre for Rating Investment in Securities of India Limited
(D) Centre for Regulating Investment in Securities of India Limited (Ans : A)

11. Which of the following is not used for long term financial needs?
(A) Equity Shares (B) Preference Shares
(C) Trade Credit (D) Debentures (Ans : C)

12. Which of the following is not concerned with equity shares?
(A) Ownership (B) Fixed rate of dividend
(C) Voting power (D) Rights Issue (Ans : B)

13. According to enlightenment matrix a company high in philanthropy and high in self interest is involved in-
(A) Social responsibility (B) Pure philanthropy
(C) Enlightened self interest (D) Cause related marketing (Ans : A)

14. Which principle states that there should be one head and one plan ?
(A) Unity of command (B) Unity of direction
(C) Scalar chain (D) Order (Ans : B)

15. Which of the following characteristics disqualifies management to be a science?
(A) Systematised body (B) Continuous observation
(C) Creativity (D) Validity (Ans : C)

16. Which of the following is not a trait of decentralisation ?
(A) Subordinate become liable for the work
(B) It is an end result of a deliberate policy of delegation of authority to the lowest managerial level
(C) It is more suitable to small organisations rather than large organisations
(D) It creates autonomous and self-sufficient units (Ans : C)

17. ……….leader does not have any trust and confidence in subordinates.
(A) Benevolent (B) Exploitative
(C) Participative (D) Democratic (Ans : B)

18. Who developed the theory of comparative advantage ?
(A) Adam Smith (B) David Ricardo
(C) Joseph Stiglits (D) Amartya Sen (Ans : B)

19. FEMA was passed in the year–
(A) 1999 (B) 1975 (C) 1997 (D) 1991 (Ans : A)

20. A limited company has made a sale of Rs. 40 lakh during a financial year. If its variable cost is 70%, fixed cost is Rs. 8 lakh and interest is Rs. 2 lakh, what will be its earnings before tax?
(A) Rs. 12 lakh (B) Rs. 10 lakh (C) Rs. 2 lakh (D) Rs. 6 lakh (Ans : C)

21. Percentage change in earning per share due to percentage change in sales is known as-
(A) Degree of Financial leverage (B) Degree of Operating leverage
(C) Degree of Profitability leverage (D) Degree of Combined leverage (Ans : B)

22. Which of the following is not an assumption of Net Income approach to capital structure ?
(A) Notaxes
(B) Cost of debt is more than cost of equity
(C) Use of debt does not change the risk perception
(D) Cost of debt and cost of equity remains constant (Ans : B)

23. Book building method has been introduced in ……….in India.
(A) 1995 (B) 1985 (C) 2005 (D) 2003 (Ans : A)

24. Which statement is correct in context to primary market?
(A) Investor can buy and sell securities throughout the year
(B) It deals with the securities already offered
(C) It provides funds directly to the corporate world
(D) It has physical existence (Ans : C)

25. ……….relation follows principle of chain of command.
(A) Staff authority (B) Line authority
(C) Matrix authority (D) Functional authority (Ans : B)

26. Which of the following will lead to decrease in economic order quantity ?
(A) Increase in ordering cost (B) Increase in carrying cost
(C) Increase in safety stock (D) Increase in procurement time (Ans : B)

27. SENSEX is calculated using-
(A) as per IFRS (B) SEBI quarterly guidelines
(C) profitability ratio (D) market Capitalisation (Ans : D)

28. Capital market is It market for-
(A) long term funds and long term investments
(B) short term funds and long term investments
(C) long term funds and short term investments
(D) short term funds and short term investments (Ans : A)

29. Which of the following is the oldest depository of India?
(A) SEBI (B) CDSL (C) NSDL (D) RBI (Ans : C)

30. Which of the following is not a source of internal recruitment ?
(A) Transfer (B) Promotion
(C) Employment exchange (D) Present employees (Ans : C)

31. Proficiency of an employee may be tested through-
(A) personality test (B) movement test
(C) dexterity test (D) interest test (Ans : C)

32. What is not true in context to development of employee ?
(A) Short term process
(B) Covers managerial people
(C) More emphasis on self motivation
(D) More related with managerial and human relations skill rather than technical skill (Ans : A)

33. Setting higher prices of product during initial stages of its introduction is known as-
(A) Price Skimming Policy (B) Price Penetration Policy
(C) Price Discrimination Policy (D) Price Maintenance Policy (Ans : A)

34. According to Herzberg theory third need in hierarchy of five needs is-
(A) Safety need (B) Social need
(C) Esteem need (D) Self-actualisation need (Ans : B)

35. Term Grapevine is used for-
(A) Formal communication (B) Informal communication
(C) Written communication (D) Oral communication (Ans : B)

36. Quality circles were first established in-
(A) America (B) London (C) Australia (D) Japan (Ans : D)

37. What is not correct for strategy ?
(A) It is concerned with evolving a new course of action
(B) It is static
(C) It aims at deploying available resources for achieving objectives
(D) It is confined to long term goals and objectives (Ans : B)

38. Consumer Protection Act was enacted in-
(A) 1992 (B) 1932 (C) 1957 (D) 1986 (Ans : D)

39. Under Consumer Protection Act, consumer is not entitled to-
(A) be protected for marketing of goods hazardous to life
(B) be informed about quality, quantity and purity of product
(C) get consumer education
(D) be protected from loss caused due to faulty use of product (Ans : D)

40. Which of the following comes first in accounting cycle ?
(A) Recording in subsidiary books (B) Preparing trading account
(C) Posting in ledger accounts (D) Entering in trial balance (Ans : A)

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