Paper-III COMMERCE PAPER - III
Note : This paper contains seventy five (75) objective type questions of two (2) marks each.All questions are compulsory.
1. GNP at market prices-ndirect taxes+ubsidies is referred to as :
(1) GNP at factor cost
(2) GDP at factor cost
(3) NNP at factor cost
(4) NDP at factor cost
Answer:(1)
2. EDI system got legal recognition under which one of the following Acts ?
(1) Electronics Act, 1996
(2) Right to Data Act, 1998
(3) DGFT Act, 1999
(4) Information Technology Act, 2000
Answer:(4)
3. Following statements are related to futures contracts. Choose the statements that are nottrue :
(a) Purchase of a futures contract is called short position.
(b) Currency futures are traded on an exchange in standardised form and in fixed quantity.
(c) Default risk in futures contract is high compared to forward contract.
Codes :
(1) only (a) and (b)
(2) only (a) and (c)
(3) (a), (b) and (c)
(4) only (b)
Answer:(2)
4. From the following, identify the trading blocks in the world and choose the correct code :
(a) European Union
(b) North American Free Trade Agreements
(c) South Asian Association of Regional Co-operation
(d) Central American Common Market
(e) Central African Customs Union
Codes :
(1) (a), (b) and (c)
(2) (a), (b), (c) and (d)
(3) (a), (b), (c), (d) and (e)
(4) (a), (b) and (e)
Answer:(3)
5. Match the items of List - I with items of List - II and choose the correct code :
List - I List - II
(a) Carroll Model (i) International trade
(b) Corlett - Hague Rule (ii) Interest rate
(c) Hecksher Ohlin Theorem (iii) Principles of taxation
(d) Knut Wick sells Theory (iv) Social responsibility of business
Codes :
(a) (b) (c) (d)
(1) (iv) (iii) (i) (ii)
(2) (iii) (ii) (i) (iv)
(3) (iii) (i) (ii) (iv)
(4) (ii) (iii) (i) (iv)
Answer:(1)
6. Labour Rate of Pay Variance can be calculated by which one of the following equations ?
(1) Budgeted Labour Costs-Actual Labour Costs
(2) (Standard Hours-Actual Hours)xActual Wage Rate
(3) (Standard Wage Rate-Actual Wage Rate)xActual Hours Worked
(4) (Standard Wage Rate-Actual Wage Rate)xStandard Hours Worked
Answer:(3)
7. Given :
Margin of Safety INR 80,000
Profit INR 20,000
Sales INR 3,00,000
What is the amount of Fixed Cost ?
(1) INR 1,00,000 (2) INR 75,000 (3) INR 55,000 (4) INR 20,000
Answer:(3)
8. Preparation of consolidated statement of accounts as per AS - 21 is :
(1) Optional
(2) Mandatory for Private Ltd. Companies
(3) Mandatory for Listed Companies
(4) Mandatory for all Companies
Answer:(3)
9. Which one of the following is not true of cash Budget ?
(1) The shortage or excess of cash would appear in a particular period.
(2) All inflows would arise before outflows for those periods.
(3) Only revenue nature cash flows are shown.
(4) Proceeds from issue of share capital is shown as an inflow.
Answer:(3)
10. Study the following transactions :
(a) Raising of short term loans
(b) Goods purchased for cash
(c) Payment of bonus in the form of shares
(d) Issue of shares in lieu of raw materials
Flow of funds is :
(1) (a), (b), (c), and (d)
(2) (b), (c), and (d)
(3) (c) and (d)
(4) Only (d)
Answer:(4)
11. When a consumer increases units of X - commodity by giving up some units of Y- commodityand even to attain the same level of satisfaction, the marginal rate of substitution, will becalculated by :
(1) Change in X - Commodity divided by change in Y - Commodity
(2) Change in X - Commodity divided by marginal utility of Y - Commodity
(3) Change in Y - Commodity divided by change in X - Commodity
(4) Change in Y - Commodity divided by marginal utility of X - Commodity
Answer:(3)
12. The following is the demand function in the small market :Q=55-5P
Where "Q" denotes quantity in physical units and "P" denotes price of the commodity.
Atprice INR 5, the point price elasticity of demand would be :
(1) Zero
(2) Equal to unity
(3) Highly elastic
(4) Highly inelastic
Answer:(2)
13.
Answer:(3)
14. In the short-run, when a simple monopoly firm attains equilibrium and earns only normalprofit, its level of output will correspond to :
(1) Lowest average cost
(2) Average cost above optimum level of output
(3) Average cost equals marginal cost
(4) Marginal cost much below average cost
Answer:(4)
15. Which one of the following is a false statement ?
(1) Ramsey pricing rates to the methodology of pricing to situations where firms areregulated and the maximization of allocative
efficiency is the objective of pricingtogether with the objective of profit - maximization.
(2) Peak-load pricing is a pricing practice where price varies with time of the day.
(3) Value-pricing is the practice of pricing where the price is set based on its value tothe customer.
(4) Two - part tariff refers to a price structure which has two parts - a lump sumcharge and a variable charge.
Answer:(1)
16. All the properties of order, interval and zero origin are simultaneously possessed by :
(1) Nominal Data
(2) Interval Data
(3) Ratio Data
(4) Ordinal Data
Answer:(3)
17. Under which of the following situations, chi - square test is applicable ?
(a) testing homogenity
(b) testing goodness of fit
(c) testing equality of two sample means
(d) testing equality of two sample proportions
(e) testing independence of attributes
Codes :(1) Only (a), (b) and (c)
(2) Only (a), (b) and (e)
(3) Only (c), (d) and (e)
(4) Only (a), (c) and (e)
Answer:(2)
18. Which one of the following is not the correct statement regarding sampling distribution ofmean ?
(1) Sampling distribution of mean is normally distributed for large sized samples.
(2) Sampling distribution of mean is normally distributed for small sized samplesdrawn from not normally distributed population.
(3) "t" distribution is not normally distributed.
(4) Mean of the sampling distribution of mean is equal to the parametric value of mean.
Answer:(2)
19. Consider the following statements and identify the wrong statements :
Statement - I : Accepting null hypothesis, when it is false, is called a level ofsignificance.
Statement - II: 1 -a is called power of a test.
Statement - III : Critical value of Z - static for two - tailed test at 5% level of significanceis 1.96.
Codes :
(1) Statements I, II and III
(2) Statements I and III
(3) Statements II and III
(4) Statements I and II
Answer:(4)
20. The process of thoroughly checking the collected data to ensure optimal quality level is referredto as :
(1) Validation
(2) Editing
(3) Classification
(4) Entry
Answer:(1)
21. Statement - (I) : Management is the art of knowing what you want to do and thenseeing that
it is done in the best and the cheapest way.
Statement - (II) :Management is the process of planning and regulating the activitiesof an enterprise.
(1) Statement (I) is correct, but (II) is incorrect
(2) Statement (II) is correct, but (I) is incorrect
(3) Both the statements (I) and (II) are incorrect
(4) Both the statements (I) and (II) are correct
Answer:(4)
22. Assertion - (A) : No business runs itself, even on momentum . . . . . every businessneeds repeated stimulus.
Reasoning - (R) : The management is the dynamic, life giving element in every business,without its leadership,
the resources of production remain as resourcesand never become production.
(1) Assertion (A) and Reasoning (R), both are correct, and (R) is the correct explanationof (A).
(2) Assertion (A) and Reasoning (R), both are correct, but (R) is not the correct explanationof (A).
(3) Assertion (A) is correct, but Reasoning (R) is incorrect.
(4) Reasoning (R) is correct, but Assertion (A) is incorrect.
Answer:(1)
23. Match the items of List - I with List - II :
List - I List - II
(a) Credit Mobilier (i) Charles Babbage
(b) Charleton Twist Company (ii) Henry Fayol
(iii) Claud Henri Saint Simon (c) Difference Engine
(d) Commentry Four Chambault (iv) Robert Owen
Codes :
(a) (b) (c) (d)
(1) (iii) (iv) (i) (ii)
(2) (iii) (i) (iv) (ii)
(3) (i) (iii) (iv) (ii)
(4) (ii) (i) (iv) (iii)
Answer:(1)
24. Find out the correct combination of statements with regards to business ethics :
(a) Business ethics is the behaviour that a business adheres to in its daily dealings.
(b) The ethics of a particular business can be diverse.
(c) Business ethics has normative and descriptive dimensions.
(1) Only (a) and
(b) (2) Only (a) and (c)
(3) Only (b) and (c)
(4) All (a), (b) and (c)
Answer:(4)
25. Which one of the following is not correct about business ethics ?
(1) Business ethics reflects the philosophy of business.
(2) Business ethics is a form of applied ethics.
(3) Business ethics are governed by the Government Policies.
(4) Ethics are the standards which govern decisions on daily basis.
Answer:(3)
26. A marketing network consists of :
(1) The tasks to devise marketing activities.
(2) The tasks of hiring, training and motivating employees.
(3) The activities that help in designing and implementing the marketing programmes.
(4) The company and its supporting stakeholders with whom it has built mutually profitablebusiness relationships.
Answer:(4)
27. Target marketing involves which of the following activities ?
(a) Market positioning
(b) Market targeting
(c) Market behaviour
(d) Market segmentation
Code :
(1) (a) and (b)
(2) (b) and (d)
(3) (a), (b) and (d)
(4) (b), (c) and (d)
Answer:(3)
28. The pricing strategy which adjusts the basic price to accommodate differences in customers,products and locations is called :
(1) Differentiated pricing
(2) Promotional pricing
(3) Geographical pricing
(4) Price discounts and allowances
Answer:(1)
29. Horizontal marketing system comprises of :
(1) the producer, wholesaler and retailer acting in a unified system.
(2) multichannel marketing.
(3) two or more marketing channels to reach one or more customer segments.
(4) two or more unrelated companies put together resources to exploit an emerging market.
Answer:(4)
30. Match the items of List - I with the items of List - II :
List - I List - II
(a) Face-to-face interaction with (i) Sales promotionone or more prospective purchasers
(b) Any paid form of nonpersonal (ii) Public relationspromotion
(c) Short-term incentives to encourage (iii) Personal sellingpurchase
(d) Programmes to promote company's (iv) Advertisingimage
Codes :
(a) (b) (c) (d)
(1) (iii) (iv) (ii) (i)
(2) (iii) (iv) (i) (ii)
(3) (ii) (i) (iii) (iv)
(4) (ii) (iii) (i) (iv)
Answer:(2)
31. Which of the following techniques for appraisal of investment proposals are based on timevalue of money ?
(a) Accounting Rate of Return
(b) Internal Rate of Return
(c) Profitability Index Method
(d) Earnings Per Share
Codes :
(1) (a) and (b)
(2) (b) and (c)
(3) (a) and (d)
(4) (a), (b) and (d)
Answer:(2)
32. On the basis of the following information, what will be the EBIT corresponding to financialindifference point ?Total capital outlay INR 60,00,000
Financing Plans
(a) 100% Equity @ INR 10/- per share
(b) Debt- equity ratio 2 : 1
Rate of interest 18% p.a., corporate tax rate 40%
(1) INR 10,00,000
(2) INR 12,00,000
(3) INR 10,80,000
(4) INR 12,80,000
Answer:(3)
33. Which one of the following assumptions is not included in the James E. Walter Valuation model ?
(1) All financing by retained earnings only
(2) No change in the key variables such as EPS and DPS
(3) The firm has finite life
(4) All earnings are either distributed as dividends or invested internally immediately
Answer:(3)
34. Match the items of List - I with the items of List - II and find out the correct matching.
List - I List - II
(Formulae) (Type of leverages)
(a)Contribution/EBIT (i) Financial leverage
(b)EBIT/Earnings before Tax(EBT) (ii) Super- leverage
(c)Contribution/EBT (iii) Operating leverage
Codes :
(a) (b) (c)
(1) (ii) (iii) (i)
(2) (i) (ii) (iii)
(3) (iii) (ii) (i)
(4) (ii) (i) (iii)
Answer:(1)
35. Statement - I : Working capital leverage measures the responsiveness of Return on Equityfor changes in current Assets.
Statement - II : When the annual demand for an item is 3200 units, unit cost INR 6,
inventorycarrying charges 25% p.a. and cost of one procurement INR 150,
the economicordering quantity would be 700 units.
Codes :
(1) Both statements are correct(2) Both statements are incorrect
(3) Statement - I is correct and Statement - II is incorrect
(4) Statement - I is incorrect and Statement - II is correct
Answer:(2)
36. Match the items of List - I with the items of List - II :
List - I List - II
Conventional HRM Strategic HRM
(a) Staff specialists (i) Fast and proactive
(b) Slow and reactive (ii) People and knowledge
(c) Capital and products (iii) Line managers
(d) Cost centre (iv) Investment centre
Codes :
(a) (b) (c) (d)
(1) (ii) (i) (iii) (iv)
(2) (ii) (iii) (i) (iv)
(3) (iii) (ii) (i) (iv)
(4) (i) (ii) (iii) (iv)
Answer:(2)
37. Which one of the following is a traditional method for selection of personnel ?
(1) Interview
(2) Selection Test
(3) Phrenology
(4) Aptitude Test
Answer:(3)
38. The method of training in crafts, trades and technical areas is known as :
(1) Vestibule training
(2) Coaching
(3) Mentoring
(4) Apprenticeship
Answer:(4)
39. Behaviourally Anchored Rating Scale is a technique used for :
(1) Selection
(2) Succession Planning
(3) Performance appraisal
(4) Recruitment
Answer:(3)
40. Which one of the following is not a mechanism of managing stress ?
(1) Rust out
(2) Cognitive therapy
(3) Job enrichment
(4) Networking
Answer:(1)
41. Interest earned by a depositor against a deposit with a commercial bank for custodialservice :
(1) is a fund based income
(2) is a fee based income
(3) is a combination of fund and fee based gain
(4) is a commitment based gain
Answer:(1)
42. Match the items in List - I with the items in List - II :
List - I List - II
(a) ATM card (i) NPA
(b) Debts due for more than 30 days (ii) John Shephard Barron
(c) Micro finance (iii) State Finance Corporations Act
(d) State level finance corporations (iv) NABARD
Codes :
(a) (b) (c) (d)
(1) (i) (iii) (ii) (iv)
(2) (ii) (i) (iv) (iii)
(3) (iv) (iii) (ii) (i)
(4) (ii) (i) (iii) (iv)
Answer:(4)
43. Assertion (A) : A well developed money market is the basis for an effective monetary policy.
It is in the money market that the Central Bank comes into contact with thefinancial sectors of the
economy as a whole and it is through the liquidity inthe market that influence the cost and availability of credit.
Reasoning (R) : A well organised money market is an essential condition for the successfuloperation of the Central Banking policies,
and for holding the conditions ofliquidity within the bounds of what the monetary authorities considerdesirable.
(1) (A) is true but (R) is false
(2) (R) is true but (A) is false
(3) (A) is true and (R) offers correct explanation to (A)
(4) Both (A) and (R) are false
Answer:(3)
44. The operations of banks and financial institutions are regulated by :
(1) The RBI Act 1934 only
(2) The Banking Regulation Act 1949 only
(3) Information Technology Act 2000 only
(4) All of the above
Answer:(4)
45. To operationalise online, internet, mobile banking, debit card and credit card tools, some ofthe essential ingredients are :
(1) Compliance with the Information Technology Act 2000
(2) Satellite connection
(3) Selection of a portal and server
(4) All of the above
Answer:(4)
46. Any country consistently facing balance of payment deficiency can approach :
(1) The World Bank
(2) The Smithsonian Institute
(3) IMF
(4) The IMF and the IBRD
Answer:(3)
47. Countertrade means :
(1) A sort of bilateral trade where one set of goods is exchanged for another set of goodsand a seller
provides a buyer with deliveries.
(2) A company takes full responsibility for making its goods available in the target marketby selling directly to the end-users.
(3) The companies in two separate sovereigns agree to exchange one set of goods for anotherset of goods
(4) A set of multilateral trade where one of goods and services may be exchanged foranother set of goods and services among the trading partners.
Answer:(1)
48. The floating rate system is characterised by :
(1) the market forces that determine the exchange rate between two currencies.
(2) the central banking authorities of the two countries mutually agree upon the rate.
(3) help realigning the par value of major currencies.
(4) the rate of exchange mutually agreed upon between IMF and its member nations.
Answer:(1)
49. A practice of selling a commodity in a foreign market at a price lower than the domesticprice;
and even at equal to the cost of production to capture foreign market is known as :
(1) Gouging
(2) Forging
(3) Dumping
(4) Forfeiting
Answer:(3)
50. The highest percentage of export from India went to which of the following regions in2013-14 ?
(1) OECD countries
(2) USA
(3) SAARC
(4) Latin America
Answer:(1)
51. Match the items of List - I with the items of List - II and select a correct code :
List - I List - II
(a) SEBI (i) Exchange for small companies
(b) RBI (ii) Secondary market in treasury bills
(c) STCI (iii) Regulation of secondary market
(d) OTCEI (iv) Ad-hoc treasury bills
Codes :
(a) (b) (c) (d)
(1) (iv) (ii) (iii) (i)
(2) (iii) (iv) (ii) (i)
(3) (iii) (i) (ii) (iv)
(4) (ii) (iii) (i) (iv)
Answer:(2)
52. X Ltd. goes into liquidation and a new company Z Ltd. purchases the business of X Ltd.
It isa case of :
(1) Amalgamation
(2) Absorption
(3) Internal reconstruction
(4) External reconstruction
Answer:(4)
53. When the cost incurred on recruiting, training and developing the employees is consideredfor
determining the value of employees, it is called :
(1) The replacement cost approach
(2) The historical cost approach
(3) The opportunity cost approach
(4) None of the above
Answer:(2)
54. In India, NIFTY and SENSEX are calculated on the basis of :
(1) Market capitalisation
(2) Paid up capital
(3) Free-float market capitalisation
(4) Authorized share capital
Answer:(3)
55. Financial Instruments which are issued with detachable warrants and are redeemable aftercertain period is known as :
(1) Deep Discount Bonds
(2) Secured Premium Notes
(3) Bunny Bonds
(4) Junk Bonds
Answer:(2)
56. Which of the following can be used by a company as communication mix to reach the targetcustomers ?
(a) Advertising
(b) Sales promotion
(c) Events and experiences
(d) Public relations
(e) Direct marketing
(f) Personal selling
Codes :
(1) (a), (b), (d) and (f)
(2) (a), (b), (e) and (f)
(3) (a), (b), (d), (e) and (f)
(4) (a), (b), (c), (d), (e) and (f)
Answer:(4)
57. In addition to motivation, learning and memory, which one of the following is included inthe main psychological processes
affecting consumer behaviour ?
(1) Perception
(2) Life cycle
(3) Life style
(4) Social class
Answer:(1)
58. Match the items of List - I with the items of List - II :
List - I List - II
(a) Geographic Segmentation (i) Gender, income, religion
(b) Demographic Segmentation (ii) Knowledge, attitude, response
(c) Psychographic Segmentation (iii) Regions, cities, neighbourhoods
(d) Behavioural Segmentation (iv) Lifestyle, personality traits, values
Codes :
(a) (b) (c) (d)
(1) (ii) (iv) (iii) (i)
(2) (ii) (iv) (i) (iii)
(3) (iv) (ii) (i) (iii)
(4) (iv) (i) (ii) (iii)
Answer:(*)
59. Which one of the following is not a stage in the product life cycle ?
(1) Introduction
(2) Growth
(3) Equilibrium
(4) Decline
Answer:(3)
60. Which one of the following is correct statement in respect of co-branding ?
(1) Co-branding is an umbrella branding of goods of a company.
(2) In co-branding, two or more well-known existing brands are combined into a jointproduct.
(3) Co-branding is the process of combining two brands for promoting brand equity.
(4) All of the above
Answer:(2)
61. Which one of the following is not a major punishment ?
(1) Withholding of increments
(2) Demotion
(3) Transfer
(4) Suspension
Answer:(3)
62. Assertion (A) : Job evaluation is essentially a job rating process, not unlike the rating ofemployees.
Reasoning (R): Job evaluation is a practice which seeks to provide a degree of objectivity inmeasuring the comparative value
of jobs within an organisation and amongsimilar organisations.
(1) Both Assertion (A) and Reasoning (R) are correct
(2) Both Assertion (A) and Reasoning (R) are incorrect
(3) Assertion (A) is correct, but Reasoning (R) is incorrect
(4) Reasoning (R) is correct, but Assertion (A) is incorrect
Answer:(1)
63.
Answer:(2)
64. Which among the following are not part of staffing process ?
(a) Human Resource Planning
(b) Recruitment
(c) Selection
(d) Induction and Orientation
(e) Training and Development
(f) Performance Appraisal
(g) Transfers
(h) Separations
Codes :
(1) (e), (f), (g) and (h)
(2) (g) and (h)
(3) (f) and (h)
(4) None of the above
Answer:(4)
65. Match the items of List - I with List - II :
List - I List - II
(a) INTUC (i) 1920
(b) AITUC (ii) 1947
(c) CITU (iii) 1955
(d) BMS (iv) 1970
Codes :
(a) (b) (c) (d)
(1) (i) (ii) (iii) (iv)
(2) (ii) (i) (iv) (iii)
(3) (ii) (i) (iii) (iv)
(4) (iii) (i) (iv) (ii)
Answer:(2)
66. Assertion (A) : Amended Patent Act, in compliance with WTO, provides for grant ofproduct patent as well
as a process patent for a period of 20 years from thedate of application.
Reasoning (R) : Under the Act, patent may be granted to an invention which means a newproduct or process involving an inventive step and capable of industrialapplication, a technical advance over existing knowledge.
Codes :
(1) Both (A) and (R) are true but (R), is not correct explanation to (A).
(2) (A) is false but (R) is correct.
(3) Both (A) and (R) are true and (R), is correct explanation to (A).
(4) (A) is correct but (R) is false.
Answer:(3)
67. Which of the following have been recognised under the intellectual property eligible forcreation of rights as per WTO mandate ?
(a) Computer software, music disc, performing art
(b) Geographical indicator
(c) Global positioning system
(d) Journals, books, seeds, design,
brandCodes :
(1) (a), (b) and (c)
(2) (d), (c) and (a)
(3) (a), (b) and (d)
(4) (c), (a) and (b)
Answer:(3)
68. NAFTA came into force from January, 1994 embracing :
(1) The USA, Canada, Cuba, Trinidad and Tobago
(2) The USA, Canada, Mexico
(3) Cuba, Mexico, USA, Havana
(4) Trinidad, The USA, Mexico
Answer:(2)
69. A common market is one where :
(1) all the trading nations agree commonly to levy a common and uniform tariff rate for allgoods.
(2) all the trading nations agree commonly to rationalise tariff and non-tariff barriersmutually to promote intra-region trade.
(3) there is a customs union along with free intra - union movement of factors of production.
(4) there is an economic union along with free intra-union movement of residents.
Answer:(3)
70. The Maastricht Treaty of February, 1992 renamed the European Community (EC) as :
(1) the European Union (EU)
(2) the European Economic Union (EEU)
(3) the European Monetary Union (EMU)
(4) the European Economic Community (EEC)
Answer:(1)
71. In which of the following cases, Assessing officer has the discretion to assess the income ofthe previous year
in the previous year or in the subsequent assessment year ?
(1) Shipping business of non-residents
(2) Association of Persons (AOP) or Body of Individuals (BOI) formed for a particularevent or purpose
(3) Assessment of persons likely to transfer property to avoid tax
(4) Discontinued business
Answer:(4)
72. Rental income received by a foreign individual, from another foreign individual, in respect ofthe property situated in
Delhi is taxable in the hands of :
(1) Resident and Ordinarily Resident (OR) only
(2) Ordinarily Resident (OR) and Not Ordinarily Resident (NOR) only
(3) Non Resident (NR) only
(4) Ordinarily Resident (OR), Not Ordinarily Resident (NOR) and Non Resident (NR)
Answer:(4)
73. Which of the following income is not chargeable under the head income from business andprofession ?
(1) Profits and Gains carried on by an assessee during the previous year.
(2) Income derived by a trade professional or similar association from specific servicesperformed for its members.
(3) Income from the activity of owning or owning and maintaining race horses.
(4) Salary received by a partner of a firm from the same firm.
Answer:(3)
74. Mr. A earned a capital gain of INR 100 lakhs on 31-2-2014 from the sale of a long term capitalasset (land)
within the limits of Jaipur corporation.If he invests INR 60 lakhs, out of` 100 lakhs, in Rural Electricity
Corporation Bonds approved under Sec. 54 EC in 20-2-2014,what is the amount of exemption he can claim under
Sec. 54 EC of Income Tax Act for theAY 2014-15 ?
(1) INR 60 lakhs
(2) INR 50 lakhs
(3) INR 100 lakhs
(4) INR 30 lakhs
Answer:(*)
75. Under which of the following situations, the Appellate Tribunal can rectify the mistake inthe
order passed by it under Sec 254 (2) of Income Tax Act ?
(a) If subsequent decision of the Supreme Court/High Court is available
on the subjectafter the Appellate Tribunal's order
(b) If an assessee apply for rectification of the Tribunal's order by raising fresh groundsbefore the Tribunal
(c) If the omission or mistake is on the part of Appellate Tribunal
(d) If the order is passed by the Appellate Tribunal under an erroneous impression of factor law
Codes :
(1) (a), (b) and (c)
(2) (b), (c) and (d)
(3) (a), (c) and (d)
(4) only (c) and (d)
Answer:(3)
Note : This paper contains seventy five (75) objective type questions of two (2) marks each.All questions are compulsory.
1. GNP at market prices-ndirect taxes+ubsidies is referred to as :
(1) GNP at factor cost
(2) GDP at factor cost
(3) NNP at factor cost
(4) NDP at factor cost
Answer:(1)
2. EDI system got legal recognition under which one of the following Acts ?
(1) Electronics Act, 1996
(2) Right to Data Act, 1998
(3) DGFT Act, 1999
(4) Information Technology Act, 2000
Answer:(4)
3. Following statements are related to futures contracts. Choose the statements that are nottrue :
(a) Purchase of a futures contract is called short position.
(b) Currency futures are traded on an exchange in standardised form and in fixed quantity.
(c) Default risk in futures contract is high compared to forward contract.
Codes :
(1) only (a) and (b)
(2) only (a) and (c)
(3) (a), (b) and (c)
(4) only (b)
Answer:(2)
4. From the following, identify the trading blocks in the world and choose the correct code :
(a) European Union
(b) North American Free Trade Agreements
(c) South Asian Association of Regional Co-operation
(d) Central American Common Market
(e) Central African Customs Union
Codes :
(1) (a), (b) and (c)
(2) (a), (b), (c) and (d)
(3) (a), (b), (c), (d) and (e)
(4) (a), (b) and (e)
Answer:(3)
5. Match the items of List - I with items of List - II and choose the correct code :
List - I List - II
(a) Carroll Model (i) International trade
(b) Corlett - Hague Rule (ii) Interest rate
(c) Hecksher Ohlin Theorem (iii) Principles of taxation
(d) Knut Wick sells Theory (iv) Social responsibility of business
Codes :
(a) (b) (c) (d)
(1) (iv) (iii) (i) (ii)
(2) (iii) (ii) (i) (iv)
(3) (iii) (i) (ii) (iv)
(4) (ii) (iii) (i) (iv)
Answer:(1)
6. Labour Rate of Pay Variance can be calculated by which one of the following equations ?
(1) Budgeted Labour Costs-Actual Labour Costs
(2) (Standard Hours-Actual Hours)xActual Wage Rate
(3) (Standard Wage Rate-Actual Wage Rate)xActual Hours Worked
(4) (Standard Wage Rate-Actual Wage Rate)xStandard Hours Worked
Answer:(3)
7. Given :
Margin of Safety INR 80,000
Profit INR 20,000
Sales INR 3,00,000
What is the amount of Fixed Cost ?
(1) INR 1,00,000 (2) INR 75,000 (3) INR 55,000 (4) INR 20,000
Answer:(3)
8. Preparation of consolidated statement of accounts as per AS - 21 is :
(1) Optional
(2) Mandatory for Private Ltd. Companies
(3) Mandatory for Listed Companies
(4) Mandatory for all Companies
Answer:(3)
9. Which one of the following is not true of cash Budget ?
(1) The shortage or excess of cash would appear in a particular period.
(2) All inflows would arise before outflows for those periods.
(3) Only revenue nature cash flows are shown.
(4) Proceeds from issue of share capital is shown as an inflow.
Answer:(3)
10. Study the following transactions :
(a) Raising of short term loans
(b) Goods purchased for cash
(c) Payment of bonus in the form of shares
(d) Issue of shares in lieu of raw materials
Flow of funds is :
(1) (a), (b), (c), and (d)
(2) (b), (c), and (d)
(3) (c) and (d)
(4) Only (d)
Answer:(4)
11. When a consumer increases units of X - commodity by giving up some units of Y- commodityand even to attain the same level of satisfaction, the marginal rate of substitution, will becalculated by :
(1) Change in X - Commodity divided by change in Y - Commodity
(2) Change in X - Commodity divided by marginal utility of Y - Commodity
(3) Change in Y - Commodity divided by change in X - Commodity
(4) Change in Y - Commodity divided by marginal utility of X - Commodity
Answer:(3)
12. The following is the demand function in the small market :Q=55-5P
Where "Q" denotes quantity in physical units and "P" denotes price of the commodity.
Atprice INR 5, the point price elasticity of demand would be :
(1) Zero
(2) Equal to unity
(3) Highly elastic
(4) Highly inelastic
Answer:(2)
13.
Answer:(3)
14. In the short-run, when a simple monopoly firm attains equilibrium and earns only normalprofit, its level of output will correspond to :
(1) Lowest average cost
(2) Average cost above optimum level of output
(3) Average cost equals marginal cost
(4) Marginal cost much below average cost
Answer:(4)
15. Which one of the following is a false statement ?
(1) Ramsey pricing rates to the methodology of pricing to situations where firms areregulated and the maximization of allocative
efficiency is the objective of pricingtogether with the objective of profit - maximization.
(2) Peak-load pricing is a pricing practice where price varies with time of the day.
(3) Value-pricing is the practice of pricing where the price is set based on its value tothe customer.
(4) Two - part tariff refers to a price structure which has two parts - a lump sumcharge and a variable charge.
Answer:(1)
16. All the properties of order, interval and zero origin are simultaneously possessed by :
(1) Nominal Data
(2) Interval Data
(3) Ratio Data
(4) Ordinal Data
Answer:(3)
17. Under which of the following situations, chi - square test is applicable ?
(a) testing homogenity
(b) testing goodness of fit
(c) testing equality of two sample means
(d) testing equality of two sample proportions
(e) testing independence of attributes
Codes :(1) Only (a), (b) and (c)
(2) Only (a), (b) and (e)
(3) Only (c), (d) and (e)
(4) Only (a), (c) and (e)
Answer:(2)
18. Which one of the following is not the correct statement regarding sampling distribution ofmean ?
(1) Sampling distribution of mean is normally distributed for large sized samples.
(2) Sampling distribution of mean is normally distributed for small sized samplesdrawn from not normally distributed population.
(3) "t" distribution is not normally distributed.
(4) Mean of the sampling distribution of mean is equal to the parametric value of mean.
Answer:(2)
19. Consider the following statements and identify the wrong statements :
Statement - I : Accepting null hypothesis, when it is false, is called a level ofsignificance.
Statement - II: 1 -a is called power of a test.
Statement - III : Critical value of Z - static for two - tailed test at 5% level of significanceis 1.96.
Codes :
(1) Statements I, II and III
(2) Statements I and III
(3) Statements II and III
(4) Statements I and II
Answer:(4)
20. The process of thoroughly checking the collected data to ensure optimal quality level is referredto as :
(1) Validation
(2) Editing
(3) Classification
(4) Entry
Answer:(1)
21. Statement - (I) : Management is the art of knowing what you want to do and thenseeing that
it is done in the best and the cheapest way.
Statement - (II) :Management is the process of planning and regulating the activitiesof an enterprise.
(1) Statement (I) is correct, but (II) is incorrect
(2) Statement (II) is correct, but (I) is incorrect
(3) Both the statements (I) and (II) are incorrect
(4) Both the statements (I) and (II) are correct
Answer:(4)
22. Assertion - (A) : No business runs itself, even on momentum . . . . . every businessneeds repeated stimulus.
Reasoning - (R) : The management is the dynamic, life giving element in every business,without its leadership,
the resources of production remain as resourcesand never become production.
(1) Assertion (A) and Reasoning (R), both are correct, and (R) is the correct explanationof (A).
(2) Assertion (A) and Reasoning (R), both are correct, but (R) is not the correct explanationof (A).
(3) Assertion (A) is correct, but Reasoning (R) is incorrect.
(4) Reasoning (R) is correct, but Assertion (A) is incorrect.
Answer:(1)
23. Match the items of List - I with List - II :
List - I List - II
(a) Credit Mobilier (i) Charles Babbage
(b) Charleton Twist Company (ii) Henry Fayol
(iii) Claud Henri Saint Simon (c) Difference Engine
(d) Commentry Four Chambault (iv) Robert Owen
Codes :
(a) (b) (c) (d)
(1) (iii) (iv) (i) (ii)
(2) (iii) (i) (iv) (ii)
(3) (i) (iii) (iv) (ii)
(4) (ii) (i) (iv) (iii)
Answer:(1)
24. Find out the correct combination of statements with regards to business ethics :
(a) Business ethics is the behaviour that a business adheres to in its daily dealings.
(b) The ethics of a particular business can be diverse.
(c) Business ethics has normative and descriptive dimensions.
(1) Only (a) and
(b) (2) Only (a) and (c)
(3) Only (b) and (c)
(4) All (a), (b) and (c)
Answer:(4)
25. Which one of the following is not correct about business ethics ?
(1) Business ethics reflects the philosophy of business.
(2) Business ethics is a form of applied ethics.
(3) Business ethics are governed by the Government Policies.
(4) Ethics are the standards which govern decisions on daily basis.
Answer:(3)
26. A marketing network consists of :
(1) The tasks to devise marketing activities.
(2) The tasks of hiring, training and motivating employees.
(3) The activities that help in designing and implementing the marketing programmes.
(4) The company and its supporting stakeholders with whom it has built mutually profitablebusiness relationships.
Answer:(4)
27. Target marketing involves which of the following activities ?
(a) Market positioning
(b) Market targeting
(c) Market behaviour
(d) Market segmentation
Code :
(1) (a) and (b)
(2) (b) and (d)
(3) (a), (b) and (d)
(4) (b), (c) and (d)
Answer:(3)
28. The pricing strategy which adjusts the basic price to accommodate differences in customers,products and locations is called :
(1) Differentiated pricing
(2) Promotional pricing
(3) Geographical pricing
(4) Price discounts and allowances
Answer:(1)
29. Horizontal marketing system comprises of :
(1) the producer, wholesaler and retailer acting in a unified system.
(2) multichannel marketing.
(3) two or more marketing channels to reach one or more customer segments.
(4) two or more unrelated companies put together resources to exploit an emerging market.
Answer:(4)
30. Match the items of List - I with the items of List - II :
List - I List - II
(a) Face-to-face interaction with (i) Sales promotionone or more prospective purchasers
(b) Any paid form of nonpersonal (ii) Public relationspromotion
(c) Short-term incentives to encourage (iii) Personal sellingpurchase
(d) Programmes to promote company's (iv) Advertisingimage
Codes :
(a) (b) (c) (d)
(1) (iii) (iv) (ii) (i)
(2) (iii) (iv) (i) (ii)
(3) (ii) (i) (iii) (iv)
(4) (ii) (iii) (i) (iv)
Answer:(2)
31. Which of the following techniques for appraisal of investment proposals are based on timevalue of money ?
(a) Accounting Rate of Return
(b) Internal Rate of Return
(c) Profitability Index Method
(d) Earnings Per Share
Codes :
(1) (a) and (b)
(2) (b) and (c)
(3) (a) and (d)
(4) (a), (b) and (d)
Answer:(2)
32. On the basis of the following information, what will be the EBIT corresponding to financialindifference point ?Total capital outlay INR 60,00,000
Financing Plans
(a) 100% Equity @ INR 10/- per share
(b) Debt- equity ratio 2 : 1
Rate of interest 18% p.a., corporate tax rate 40%
(1) INR 10,00,000
(2) INR 12,00,000
(3) INR 10,80,000
(4) INR 12,80,000
Answer:(3)
33. Which one of the following assumptions is not included in the James E. Walter Valuation model ?
(1) All financing by retained earnings only
(2) No change in the key variables such as EPS and DPS
(3) The firm has finite life
(4) All earnings are either distributed as dividends or invested internally immediately
Answer:(3)
34. Match the items of List - I with the items of List - II and find out the correct matching.
List - I List - II
(Formulae) (Type of leverages)
(a)Contribution/EBIT (i) Financial leverage
(b)EBIT/Earnings before Tax(EBT) (ii) Super- leverage
(c)Contribution/EBT (iii) Operating leverage
Codes :
(a) (b) (c)
(1) (ii) (iii) (i)
(2) (i) (ii) (iii)
(3) (iii) (ii) (i)
(4) (ii) (i) (iii)
Answer:(1)
35. Statement - I : Working capital leverage measures the responsiveness of Return on Equityfor changes in current Assets.
Statement - II : When the annual demand for an item is 3200 units, unit cost INR 6,
inventorycarrying charges 25% p.a. and cost of one procurement INR 150,
the economicordering quantity would be 700 units.
Codes :
(1) Both statements are correct(2) Both statements are incorrect
(3) Statement - I is correct and Statement - II is incorrect
(4) Statement - I is incorrect and Statement - II is correct
Answer:(2)
36. Match the items of List - I with the items of List - II :
List - I List - II
Conventional HRM Strategic HRM
(a) Staff specialists (i) Fast and proactive
(b) Slow and reactive (ii) People and knowledge
(c) Capital and products (iii) Line managers
(d) Cost centre (iv) Investment centre
Codes :
(a) (b) (c) (d)
(1) (ii) (i) (iii) (iv)
(2) (ii) (iii) (i) (iv)
(3) (iii) (ii) (i) (iv)
(4) (i) (ii) (iii) (iv)
Answer:(2)
37. Which one of the following is a traditional method for selection of personnel ?
(1) Interview
(2) Selection Test
(3) Phrenology
(4) Aptitude Test
Answer:(3)
38. The method of training in crafts, trades and technical areas is known as :
(1) Vestibule training
(2) Coaching
(3) Mentoring
(4) Apprenticeship
Answer:(4)
39. Behaviourally Anchored Rating Scale is a technique used for :
(1) Selection
(2) Succession Planning
(3) Performance appraisal
(4) Recruitment
Answer:(3)
40. Which one of the following is not a mechanism of managing stress ?
(1) Rust out
(2) Cognitive therapy
(3) Job enrichment
(4) Networking
Answer:(1)
41. Interest earned by a depositor against a deposit with a commercial bank for custodialservice :
(1) is a fund based income
(2) is a fee based income
(3) is a combination of fund and fee based gain
(4) is a commitment based gain
Answer:(1)
42. Match the items in List - I with the items in List - II :
List - I List - II
(a) ATM card (i) NPA
(b) Debts due for more than 30 days (ii) John Shephard Barron
(c) Micro finance (iii) State Finance Corporations Act
(d) State level finance corporations (iv) NABARD
Codes :
(a) (b) (c) (d)
(1) (i) (iii) (ii) (iv)
(2) (ii) (i) (iv) (iii)
(3) (iv) (iii) (ii) (i)
(4) (ii) (i) (iii) (iv)
Answer:(4)
43. Assertion (A) : A well developed money market is the basis for an effective monetary policy.
It is in the money market that the Central Bank comes into contact with thefinancial sectors of the
economy as a whole and it is through the liquidity inthe market that influence the cost and availability of credit.
Reasoning (R) : A well organised money market is an essential condition for the successfuloperation of the Central Banking policies,
and for holding the conditions ofliquidity within the bounds of what the monetary authorities considerdesirable.
(1) (A) is true but (R) is false
(2) (R) is true but (A) is false
(3) (A) is true and (R) offers correct explanation to (A)
(4) Both (A) and (R) are false
Answer:(3)
44. The operations of banks and financial institutions are regulated by :
(1) The RBI Act 1934 only
(2) The Banking Regulation Act 1949 only
(3) Information Technology Act 2000 only
(4) All of the above
Answer:(4)
45. To operationalise online, internet, mobile banking, debit card and credit card tools, some ofthe essential ingredients are :
(1) Compliance with the Information Technology Act 2000
(2) Satellite connection
(3) Selection of a portal and server
(4) All of the above
Answer:(4)
46. Any country consistently facing balance of payment deficiency can approach :
(1) The World Bank
(2) The Smithsonian Institute
(3) IMF
(4) The IMF and the IBRD
Answer:(3)
47. Countertrade means :
(1) A sort of bilateral trade where one set of goods is exchanged for another set of goodsand a seller
provides a buyer with deliveries.
(2) A company takes full responsibility for making its goods available in the target marketby selling directly to the end-users.
(3) The companies in two separate sovereigns agree to exchange one set of goods for anotherset of goods
(4) A set of multilateral trade where one of goods and services may be exchanged foranother set of goods and services among the trading partners.
Answer:(1)
48. The floating rate system is characterised by :
(1) the market forces that determine the exchange rate between two currencies.
(2) the central banking authorities of the two countries mutually agree upon the rate.
(3) help realigning the par value of major currencies.
(4) the rate of exchange mutually agreed upon between IMF and its member nations.
Answer:(1)
49. A practice of selling a commodity in a foreign market at a price lower than the domesticprice;
and even at equal to the cost of production to capture foreign market is known as :
(1) Gouging
(2) Forging
(3) Dumping
(4) Forfeiting
Answer:(3)
50. The highest percentage of export from India went to which of the following regions in2013-14 ?
(1) OECD countries
(2) USA
(3) SAARC
(4) Latin America
Answer:(1)
51. Match the items of List - I with the items of List - II and select a correct code :
List - I List - II
(a) SEBI (i) Exchange for small companies
(b) RBI (ii) Secondary market in treasury bills
(c) STCI (iii) Regulation of secondary market
(d) OTCEI (iv) Ad-hoc treasury bills
Codes :
(a) (b) (c) (d)
(1) (iv) (ii) (iii) (i)
(2) (iii) (iv) (ii) (i)
(3) (iii) (i) (ii) (iv)
(4) (ii) (iii) (i) (iv)
Answer:(2)
52. X Ltd. goes into liquidation and a new company Z Ltd. purchases the business of X Ltd.
It isa case of :
(1) Amalgamation
(2) Absorption
(3) Internal reconstruction
(4) External reconstruction
Answer:(4)
53. When the cost incurred on recruiting, training and developing the employees is consideredfor
determining the value of employees, it is called :
(1) The replacement cost approach
(2) The historical cost approach
(3) The opportunity cost approach
(4) None of the above
Answer:(2)
54. In India, NIFTY and SENSEX are calculated on the basis of :
(1) Market capitalisation
(2) Paid up capital
(3) Free-float market capitalisation
(4) Authorized share capital
Answer:(3)
55. Financial Instruments which are issued with detachable warrants and are redeemable aftercertain period is known as :
(1) Deep Discount Bonds
(2) Secured Premium Notes
(3) Bunny Bonds
(4) Junk Bonds
Answer:(2)
56. Which of the following can be used by a company as communication mix to reach the targetcustomers ?
(a) Advertising
(b) Sales promotion
(c) Events and experiences
(d) Public relations
(e) Direct marketing
(f) Personal selling
Codes :
(1) (a), (b), (d) and (f)
(2) (a), (b), (e) and (f)
(3) (a), (b), (d), (e) and (f)
(4) (a), (b), (c), (d), (e) and (f)
Answer:(4)
57. In addition to motivation, learning and memory, which one of the following is included inthe main psychological processes
affecting consumer behaviour ?
(1) Perception
(2) Life cycle
(3) Life style
(4) Social class
Answer:(1)
58. Match the items of List - I with the items of List - II :
List - I List - II
(a) Geographic Segmentation (i) Gender, income, religion
(b) Demographic Segmentation (ii) Knowledge, attitude, response
(c) Psychographic Segmentation (iii) Regions, cities, neighbourhoods
(d) Behavioural Segmentation (iv) Lifestyle, personality traits, values
Codes :
(a) (b) (c) (d)
(1) (ii) (iv) (iii) (i)
(2) (ii) (iv) (i) (iii)
(3) (iv) (ii) (i) (iii)
(4) (iv) (i) (ii) (iii)
Answer:(*)
59. Which one of the following is not a stage in the product life cycle ?
(1) Introduction
(2) Growth
(3) Equilibrium
(4) Decline
Answer:(3)
60. Which one of the following is correct statement in respect of co-branding ?
(1) Co-branding is an umbrella branding of goods of a company.
(2) In co-branding, two or more well-known existing brands are combined into a jointproduct.
(3) Co-branding is the process of combining two brands for promoting brand equity.
(4) All of the above
Answer:(2)
61. Which one of the following is not a major punishment ?
(1) Withholding of increments
(2) Demotion
(3) Transfer
(4) Suspension
Answer:(3)
62. Assertion (A) : Job evaluation is essentially a job rating process, not unlike the rating ofemployees.
Reasoning (R): Job evaluation is a practice which seeks to provide a degree of objectivity inmeasuring the comparative value
of jobs within an organisation and amongsimilar organisations.
(1) Both Assertion (A) and Reasoning (R) are correct
(2) Both Assertion (A) and Reasoning (R) are incorrect
(3) Assertion (A) is correct, but Reasoning (R) is incorrect
(4) Reasoning (R) is correct, but Assertion (A) is incorrect
Answer:(1)
63.
Answer:(2)
64. Which among the following are not part of staffing process ?
(a) Human Resource Planning
(b) Recruitment
(c) Selection
(d) Induction and Orientation
(e) Training and Development
(f) Performance Appraisal
(g) Transfers
(h) Separations
Codes :
(1) (e), (f), (g) and (h)
(2) (g) and (h)
(3) (f) and (h)
(4) None of the above
Answer:(4)
65. Match the items of List - I with List - II :
List - I List - II
(a) INTUC (i) 1920
(b) AITUC (ii) 1947
(c) CITU (iii) 1955
(d) BMS (iv) 1970
Codes :
(a) (b) (c) (d)
(1) (i) (ii) (iii) (iv)
(2) (ii) (i) (iv) (iii)
(3) (ii) (i) (iii) (iv)
(4) (iii) (i) (iv) (ii)
Answer:(2)
66. Assertion (A) : Amended Patent Act, in compliance with WTO, provides for grant ofproduct patent as well
as a process patent for a period of 20 years from thedate of application.
Reasoning (R) : Under the Act, patent may be granted to an invention which means a newproduct or process involving an inventive step and capable of industrialapplication, a technical advance over existing knowledge.
Codes :
(1) Both (A) and (R) are true but (R), is not correct explanation to (A).
(2) (A) is false but (R) is correct.
(3) Both (A) and (R) are true and (R), is correct explanation to (A).
(4) (A) is correct but (R) is false.
Answer:(3)
67. Which of the following have been recognised under the intellectual property eligible forcreation of rights as per WTO mandate ?
(a) Computer software, music disc, performing art
(b) Geographical indicator
(c) Global positioning system
(d) Journals, books, seeds, design,
brandCodes :
(1) (a), (b) and (c)
(2) (d), (c) and (a)
(3) (a), (b) and (d)
(4) (c), (a) and (b)
Answer:(3)
68. NAFTA came into force from January, 1994 embracing :
(1) The USA, Canada, Cuba, Trinidad and Tobago
(2) The USA, Canada, Mexico
(3) Cuba, Mexico, USA, Havana
(4) Trinidad, The USA, Mexico
Answer:(2)
69. A common market is one where :
(1) all the trading nations agree commonly to levy a common and uniform tariff rate for allgoods.
(2) all the trading nations agree commonly to rationalise tariff and non-tariff barriersmutually to promote intra-region trade.
(3) there is a customs union along with free intra - union movement of factors of production.
(4) there is an economic union along with free intra-union movement of residents.
Answer:(3)
70. The Maastricht Treaty of February, 1992 renamed the European Community (EC) as :
(1) the European Union (EU)
(2) the European Economic Union (EEU)
(3) the European Monetary Union (EMU)
(4) the European Economic Community (EEC)
Answer:(1)
71. In which of the following cases, Assessing officer has the discretion to assess the income ofthe previous year
in the previous year or in the subsequent assessment year ?
(1) Shipping business of non-residents
(2) Association of Persons (AOP) or Body of Individuals (BOI) formed for a particularevent or purpose
(3) Assessment of persons likely to transfer property to avoid tax
(4) Discontinued business
Answer:(4)
72. Rental income received by a foreign individual, from another foreign individual, in respect ofthe property situated in
Delhi is taxable in the hands of :
(1) Resident and Ordinarily Resident (OR) only
(2) Ordinarily Resident (OR) and Not Ordinarily Resident (NOR) only
(3) Non Resident (NR) only
(4) Ordinarily Resident (OR), Not Ordinarily Resident (NOR) and Non Resident (NR)
Answer:(4)
73. Which of the following income is not chargeable under the head income from business andprofession ?
(1) Profits and Gains carried on by an assessee during the previous year.
(2) Income derived by a trade professional or similar association from specific servicesperformed for its members.
(3) Income from the activity of owning or owning and maintaining race horses.
(4) Salary received by a partner of a firm from the same firm.
Answer:(3)
74. Mr. A earned a capital gain of INR 100 lakhs on 31-2-2014 from the sale of a long term capitalasset (land)
within the limits of Jaipur corporation.If he invests INR 60 lakhs, out of` 100 lakhs, in Rural Electricity
Corporation Bonds approved under Sec. 54 EC in 20-2-2014,what is the amount of exemption he can claim under
Sec. 54 EC of Income Tax Act for theAY 2014-15 ?
(1) INR 60 lakhs
(2) INR 50 lakhs
(3) INR 100 lakhs
(4) INR 30 lakhs
Answer:(*)
75. Under which of the following situations, the Appellate Tribunal can rectify the mistake inthe
order passed by it under Sec 254 (2) of Income Tax Act ?
(a) If subsequent decision of the Supreme Court/High Court is available
on the subjectafter the Appellate Tribunal's order
(b) If an assessee apply for rectification of the Tribunal's order by raising fresh groundsbefore the Tribunal
(c) If the omission or mistake is on the part of Appellate Tribunal
(d) If the order is passed by the Appellate Tribunal under an erroneous impression of factor law
Codes :
(1) (a), (b) and (c)
(2) (b), (c) and (d)
(3) (a), (c) and (d)
(4) only (c) and (d)
Answer:(3)