Showing posts with label Commerce. Show all posts
Showing posts with label Commerce. Show all posts

Sunday, September 25, 2016

TNPSC - General Studies for Commerce

TNPSC - General Studies for Commerce

TNPSC - General Studies for Commerce 
  1. Banking Concept was brought in India by – European.
  2. First Bank in India  was Bank of Hindusthan established in 1779.
  3. First Presidency Bank of India – Bank of Calcutta established in 1806 and immediately became Bank of Bengal
  4. First bank of India with limited liability to be managed by Indian board was Oudh Commercial Bank. It was established in 1881.
  5. First bank purely managed by Indian was Punjab National Bank. PNB was established in Lahore in 1895.
  6. First Indian Commercial Bank wholly managed and owned by Indian was – Central Bank of India, established in 1911.
  7. First Indian bank to open a branch outside India is – Bank of India
  8. First Indian bank to open a branch in Continental Europe at Paris is Bank of India
  9. First cooperative bank in Asia? – Anyonya Co­operative Bank.
  10. First Indian Bank to get ISO certification – Canara Bank
  11. First bank in India to introduce ATM – HSBC
  12. First Foreign Bank in India – HSBC
  13. First Universal Bank in India­ ICICI Bank.
  14. First Indian bank to Introduce internet banking – ICICI bank.
  15. First bank in India listed in New York Stock Exchange (NYSE) – ICICI Bank.
  16. First bank in India to facilitate payment of Income tax using ATM recently? –Union Bank of India
  17. First Bank in India to launch Talking ATMs for differently­able person? – Union Bank of India.
  18. First Bank in India to launch it’s own Payment Aggregators – State Bank of India.(SBIePay).
  19. Country’s first all woman bank – Bhartiya Mahila Bank.
  20. Which of the following was the first public sector commercial bank which had launched a mutual fund? – State Bank of India
  21. Which of the following bank became the first in India to be fully computerized? – Bank of India
  22. India’s first truly Swadeshi bank was – Central bank of India
  23. In 1969 the Indian government nationalised 14 major private banks. 
  24. In 1980, 6 more private banks were nationalised
Public-sector banks
There are currently 27 public sector banks in India out of which 19 are nationalised banks and 6 are SBI and its associate banks, and rest two are IDBI Bank and Bharatiya Mahila Bank, which are categorised as other public sector banks. There are total 93 commercial banks in India

State Bank and its associates
  • State Bank of India
  • State Bank of Bikaner and Jaipur
  • State Bank of Hyderabad
  • State Bank of Mysore
  • State Bank of Patiala
  • State Bank of Travancore
List of Nationalised Banks
  1. Allahabad Bank
  2. Andhra Bank
  3. Bank of India
  4. Bank of Baroda
  5. Bank of Maharashtra
  6. Canara Bank
  7. Central Bank of India
  8. Corporation Bank
  9. Dena Bank
  10. Indian Bank
  11. Indian Overseas Bank
  12. Oriental Bank of Commerce
  13. Punjab & Sindh Bank
  14. Punjab National Bank
  15. Syndicate Bank
  16. UCO Bank
  17. Union Bank of India
  18. United Bank of India
  19. Vijaya Bank
Other Public Sector Banks
  1. IDBI Bank
  2. Bharatiya Mahila Bank
List of Private-Sector Banks
  1. Axis Bank
  2. Bandhan Bank[3]
  3. Catholic Syrian Bank
  4. City Union Bank
  5. Dhanlaxmi Bank
  6. DCB Bank
  7. Federal Bank
  8. HDFC Bank
  9. HSBC Bank
  10. ICICI Bank
  11. IDFC Bank
  12. Karnataka Bank
  13. IndusInd Bank
  14. Jammu and Kashmir Bank
  15. Karur Vysya Bank
  16. Kotak Mahindra Bank[4]
  17. Lakshmi Vilas Bank
  18. Nainital Bank
  19. RBL Bank
  20. South Indian Bank
  21. Yes bank
  22. Citi Bank
List of State Cooperative Banks (State Cooperative Banks (SCBs) 
  1. Andaman and Nicobar State Co-operative Bank
  2. Andhra Pradesh State Co-operative Bank
  3. Arunachal Pradesh State Co-operative Apex Bank
  4. Assam Co-operative Apex Bank
  5. Bihar State Co-operative Bank
  6. Bharat Co-operative Bank
  7. Chandigarh State Co-operative Bank
  8. Chhattisgarh Rajya Sahakari Bank Maryadit
  9. Delhi State Co-operative Bank
  10. Goa State Co-operative Bank
  11. Gujarat State Co-operative Bank
  12. Gujarat State Co-operative Agriculture & Rural Development Bank
  13. Haryana State Co-opertive Apex Bank
  14. Himachal Pradesh State Co-operative Bank
  15. Jammu and Kashmir State Co-operative Bank
  16. Jharkhand State Co-operative Bank
  17. Karnataka State Co-operative Apex Bank
  18. Kerala State Co-operative Bank
  19. Madhya Pradesh Rajya Sahakari Bank Maryadit
  20. Mogaveera Co-operative Bank
  21. Maharashtra State Co-operative Bank
  22. Manipur State Co-operative Bank
  23. Meghalaya Co-operative Apex Bank
  24. Mizoram Co-operative Apex Bank
  25. Nagaland State Co-operative Bank
  26. Orissa State Co-operative Bank
  27. Pondichery State Co-operative Bank
  28. Punjab State Co-operative Bank
  29. Rajasthan State Co-operative Bank
  30. Sikkim State Co-operative Bank
  31. The Tamil Nadu State Apex Co-operative Bank
  32. Telangana State Co-Operative Apex Bank Limited
  33. Tripura State Co-operative Bank
  34. Uttar Pradesh Co-operative Bank
  35. Uttarakhand State Co-operative Bank
  36. West Bengal State Co-operative Bank
  37. Tumkur Grain Merchant's Co-operative Bank
  38. Nagpur Nagrik Sahakari Bank Limited
List of foreign banks in India as on December 31st, 2015 
  1. Australia and New Zealand Banking Group Ltd., Australia
  2. Commonwealth Bank of Australia, Australia
  3. National Australia Bank , Australia
  4. Westpac Banking Corporation, Australia
  5. Bank of Bahrain & Kuwait BSC, Bahrain
  6. AB Bank Ltd, Bangladesh
  7. Sonali Bank Ltd. Bangladesh
  8. KBC Bank NV Belgium 
  9. Bank of Nova Scotia Canada 3
  10. Industrial & Commercial Bank of China Ltd.China
  11. BNP Paribas France
  12. Credit Agricole Corporate & Investment Bank, France
  13. Societe Generale France 
  14. Deutsche Bank Germany
  15. HSBC Ltd Hong Kong 
  16. Bank Internasional Indonesia Indonesia
  17. Mizuho Bank Ltd. Japan 5
  18. Sumitomo Mitsui Banking Corporation, Japan
  19. The Bank of Tokyo- Mitsubishi UFJ, Ltd., Japan 
  20. SBM Bank(Mauritius) Ltd Mauritius 
  21. Rabobank International Netherlands
  22. The Royal Bank of Scotland N.V., Netherlands 
  23. Doha Bank Qatar 
  24. JSC VTB Bank Russia 
  25. Sberbank Russia 
  26. DBS Bank Ltd. Singapore 
  27. United Overseas Bank Ltd Singapore 
  28. FirstRand Bank Ltd South Africa 
  29. Shinhan Bank South Korea
  30. Woori Bank South Korea 
  31. Korea Exchange Bank South Korea 
  32. Industrial Bank of Korea South Korea
  33. Bank of Ceylon Sri Lanka 
  34. Credit Suisse A.G Switzerland 
  35. UBS AG Switzerland 
  36. CTBC Bank Co., Ltd. Taiwan
  37. Krung Thai Bank Public Co. Ltd. Thailand
  38. Abu Dhabi Commercial Bank Ltd.UAE 
  39. Mashreq Bank PSC UAE 
  40. National Bank of Abu Dhabi PJSC, UAE 
  41. Barclays Bank Plc. United Kingdom 
  42. Standard Chartered Bank United Kingdom 
  43. American Express Banking Corporation, USA 
  44. Bank of America USA 
  45. Citibank N.A. USA 
  46. J.P. Morgan Chase Bank N.A. USA

Wednesday, April 20, 2016

Commerce - MCQ Important Questions and Answers Part - 4

1. Henry Fayol is known for____
(A) Scientific Management 
(B) Rationalisation
(C) Industrial Psychology 
(D) Principles of Management
Answer: Principles of Management

2. Unity of command implies having not more than one____
(A) Subordinate 
(B) Friend
(C) Boss 
(D) Unit
Answer: Boss

3. ‘x’ and ‘y’ theory of Motivation has been propounded by____
(A) McGregor 
(B) Maslow
(C) Ouchi 
(D) Herzberg
Answer: McGregor 

4. Coordination has the following features____
(A) Continuous 
(B) Vertical organisation
(C) Horizontal relationship 
(D) All of the above
Answer: All of the above

5. Which one of the following is not a barrier in communication ?
(A) Noise 
(B) Affection
(C) Fear and distrust 
(D) Perception
Answer: Perception

6. A Company can reissue its forfeited shares_____
(A) At a premium 
(B) At a face value
(C) At a discount 
(D) All of the above
Answer: All of the above

7. Which of the following is an example of capital expenditure ?
(A) Insurance Premium 
(B) Taxes and Legal expenses
(C) Depreciation 
(D) Custom duty on import of machinery
Answer: Custom duty on import of machinery

8. Given :
Average profit of a firm Rs. 21,000
Normal Profit Rs. 18,000
Value of goodwill on the basis of 3 years purchases of super profit shall be_____
(A) Rs. 39,000 
(B) Rs. 9,000
(C) Rs. 3,000 
(D) Rs. 12,000
Answer: Rs. 9,000

9. A co-operative auditor starts his work of audit from–
(A) Account Books 
(B) Payment Books
(C) Cash Book 
(D) None of the above
Answer: Cash Book

10. Accounting for research and development relates to_____
(A) AS-7 
(B) AS-8
(C) AS-9 
(D) AS-10
Answer: AS-8

11. When does a body corporate become capable forthwith of exercising all the functions of a company ?
(A) On finalizing Memorandum of Association
(B) On obtaining certificate of commencement of business
(C) On obtaining certificate of incorporation
(D) On having convened its first Annual General Meeting
Answer: On obtaining certificate of incorporation

12. Pohang Steel Company (POSCO) is a company originally based in_____
(A) Vietnam 
(B) South Korea
(C) USA 
(D) Italy
Answer: South Korea

13. Which one of the following is not one of the elements of the 7S McKinsey Model for analyzing and improving organizational effectiveness ?
(A) Strategy 
(B) Structure
(C) Shared Values 
(D) Standard
Answer: Standard

14. Consider the following statements_____
1. Aggregate planning implies operational planning concerned with determining a firm's production requirements and manufacturing capacity.
2. Behaviour modification is a concept of motivation totally independent of rewards for the employees.
Which of the statements given above is/are correct ?
(A) 1 only 
(B) 2 only
(C) Both 1 and 2 
(D) Neither 1 nor 2
Answer: Both 1 and 2

15. What is the correct sequence of the following steps in a strategic planning process ?
1. Inputs 
2. Evaluation of alternatives
3. Execution 
4. SWOT analysis
Select the correct answer using the code given below____
(A) 1 - 4 - 2 – 3 
(B) 4 - 1 - 2 - 3
(C) 1 - 2 - 3 – 4 
(D) 4 - 1 - 3 - 2
Answer: 4 - 1 - 3 - 2

16. Which one among the following is not true for Special Economic Zones?
(A) No routine examination of cargo for export/import by customs authorities
(B) No licence is required for import
(C) Manufacturing and service activities are allowed
(D) No permission for subcontracting
Answer: No routine examination of cargo for export/import by customs authorities

17. Which one among the following industries produces the most nonbiodegradable wastes?
(A) Thermal power plants 
(B) Paper mills
(C) Food processing units 
(D) Textile mills
Answer: Thermal power plants 

18. Brent index is associated with_____
(A) shipping rate index 
(B) crude oil prices
(C) copper future prices 
(D) gold future prices
Answer: crude oil prices

19. Which one among the following is not true of the planning Commission?
(A) It indicates the factors which tend to retard economic development
(B) It is an advisory body and makes recommendations to the cabinet
(C) It is responsible for formulation of a plan for the most effective and balanced utilisation of the country's resources
(D) It is responsible for the execution of development programmes and plans
Answer: It indicates the factors which tend to retard economic development

20. Which one of the following statements about RBI is 'True'?
(A) RBI maintains the foreign exchange reserves of India
(B) RBI is the regulator of Banks and Securities market in India
(C) RBI started functioning from 1870
(D) None of these
Answer: RBI maintains the foreign exchange reserves of India 

Tuesday, April 19, 2016

Commerce - MCQ Important Questions and Answers Part - 3

26. To which one of the following aspects does an established pattern of relationships among the components of an organization refer ?
(A) Organization strategy 
(B) Organization structure
(C) Organization process 
(D) Organization policy
Answer : B

27. Which one of the following is not an element of direction ?
(A) Planning and organizing various resources for doing work
(B) Continuous training activity in which subordinates are instructed to carry out a particular assignment
(C) Motivation of subordinates to try to meet the expectations of manager
(D) Maintaining discipline and rewarding those who perform properly 
Answer: C

28. Some organizations have escalator clause in their labour agreements.
What does this clause provide for ?
(A) Automatic increase in wage/salary depending on seniority
(B) Wage increase depending on output per day by the worker
(C) Automatic increase in wage/salary depending upon increase in price index
(D) Automatic increase in wage/salary depending on increase in profits of the firm 
Answer : D

29. What is an organization structure in which each employee reports to both a functional (or division) manager and to a project (or group) manager, known as ?
(A) Strategic business unit 
(B) Departmentalization by customer
(C) Matrix structure 
(D) Departmentalization by territory 
Answer : C

30. According to force-field theory, every behavior is the result of equilibrium between which of the following ?
(A) Push and pull effect 
(B) Strong and weak forces
(C) Positive and negative forces 
(D) Driving and restraining forces 
Answer : D

31. Life insurance is a contract of which one of the following ?
(A) Indemnity 
(B) Guarantee 
(C) Contribution 
(D) Abrogation
Answer : B

32. What is outsourcing of production and concentrating on marketing operations in international business, known as ?
(A) Licensing 
(B) Franchising 
(C) Contract manufacturing 
(D) Joint venture 
Answer : B

33. Which of the following is not a feature of bonds ?
(A) Par value 
(B) Yield to maturity 
(C) Coupon rate 
(D) Maturity 
Answer : B

34. Which one of the following statements is correct ?
When creditors' velocity or creditors' turnover is higher as compared to debtors' velocity, it would
(A) improve liquidity 
(B) reduce liquidity
(C) have no effect on liquidity 
(D) improve financial position 
Answer : C

35. Which one of the following transactions changes the current ratio ?
(A) Purchase of goods for cash 
(B) Plant acquired on account
(C) Sold goods on credit 
(D) Debentures converted into equity capital 
Answer : B

36. Net profit after tax of Rs. 2,00,000 is Rs. 4,00,000. Share capital is Rs. 8,00,000 and revenue reserve is Rs. 2,00,000. What is rate of return on equity ?
(A) 40% 
(B) 50% 
(C) 60% 
(D) 75% 
Answer : A

37. Members of a company may apply to which one among the following for relief under the Companies Act, 1956 in cases of oppression ?
(A) Central Government 
(B) High Court of Judicature
(C) National Company Law Tribunal 
(D) National Company Law Appellate Tribunal 
Answer: C

38. Which among the following is eligible to issue Shelf Prospectus ?
(A) Any company contemplating for public issue of securities
(B) Any public financial institution
(C) Only manufacturing companies
(D) Only foreign companies engaged in trading in India 
Answer : B

39. Which of the following companies do not have the obligation to get its Articles of Association registered along with the Memorandum of Association ?
(A) Public Company limited by shares 
(B) Unlimited companies
(C) Private companies limited by shares 
(D) Companies limited by guarantee 
Answer : A

40. What does management audit imply ?
(A) Complete audit 
(B) Detailed audit
(C) Efficiency audit 
(D) Interim audit 
Answer : C

41. Which of the following is not a part of the usual contents of the current file and audit working papers ?
(A) A copy of accounts on which auditors are reporting 
(B) Audit programme
(C) Minutes of the meetings 
(D) Memorandum of Association and Articles of Association 
Answer : D

42. Which one of the following statements is correct ?
(A) If an asset is used by a company, it should be owned by the company
(B) Verification of liabilities means that the amounts of current and long-term liabilities shown in the balance sheet are correct
(C) Vouching and verification means the same thing 
(D) It is not the duty of an auditor to confirm the physical existence and ownership of an asset
Answer : B

43. What does payout ratio mean ?
(A) Ratio of debtors to creditors
(B) Ratio of profit distributed to profit retained
(C) Ratio of dividends per share and earnings per share
(D) Retained earnings
Answer : C

44. How is ‘Calls in arrear’ shown in the balance sheet on the liability side ?
(A) By deducting the amount from the called up capital
(B) Under the heading ‘Reserves and Surplus’
(C) By deducting the amount from ‘Capital Reserve’
(D) By deducting the amount from the ‘Share Forfeited Account’ 
Answer : A

45. X and Y sharing profits in the ratio of 7 : 3 admit Z on 37th share in the new firm. Z takes 27 th from X and 17th from Y.
What is the new ratio among X, Y and Z ?
(A) 7 : 3 : 3 
(B) 4 : 2 : 15
(C) 14 : 6 : 15 
(D) 29 : 11 : 30 
Answer : D

46. What is reduction of paid-up share capital called ?
(A) External reconstruction 
(B) Internal reconstruction
(C) Reorganization 
(D) Redemption of capital 
Answer : B

47. Under which of the following methods of depreciation the amount of an asset is never reduced to zero ?
(A) Straight line method 
(B) Diminishing balance method
(C) Sums of Years Digit method 
(D) Annuity method 
Answer : B

48. An insurance claim of Rs. 300 was accepted in respect of stock (inventory) of Rs. 500, which was destroyed by fire. Rs. 200 not covered by insurance should be debited to which one of the following ?
(A) Stock account 
(B) Trading account
(C) Profit and loss account
(D) Goodwill account 
Answer : C

49. Debtors turnover ratio is 4. 
What is the average collection period ?
(A) 5 months 
(B) 4 months 
(C) 3 months 
(D) 2 months 
Answer : C

50. Depreciation is a process of which one of the following ?
(A) Valuation of assets
(B) Allocation of acquisition cost over the estimated useful life of the asset
(C) Allocation of realizable value over the estimated useful life of the asset
(D) Estimating the market value of the asset on the balance sheet date 
Answer : B

Commerce - MCQ Important Questions and Answers Part - 2

1. What is Director Identification Number (DIN) ?
(A) An identification number which the individual company allots to the intending director 
(B) A number which the Central Government allots to any individual intending to be appointed as director or to any existing director of a company
(C) A number which the SEBI allots to any individual intending to be appointed as director or to any existing director of a company 
(D) A number which the Central Government allots to retired directors so as to build data base 
Answer : B

2. When does a body corporate become capable forthwith of exercising all the functions of a company ?
(A) On finalizing Memorandum of Association
(B) On obtaining certificate of commencement of business
(C) On obtaining certificate of incorporation
(D) On having convened its first Annual General Meeting 
Answer : C

3. For how many years the books of accounts of a company have to be preserved in good order ?
(A) For a period of not less than eight years immediately preceding the current year
(B) For a period of not less than five years immediately preceding the current year
(C) For a period of not less than six years immediately preceding the current years
(D) For a period of not less than four years immediately preceding the current year 
Answer : A

4. Which one of the following is not one of the elements of the 7S McKinsey Model for analyzing and improving organizational effectiveness ?
(A) Strategy 
(B) Structure 
(C) Shared Values 
(D) Standard 
Answer : D

5. A limited company makes a net profit of Rs. 2,00,000 after writing off preliminary expenses amounting to Rs. 20,000 and providing for depreciation on assets amounting to Rs. 40,000 and gain of Rs. 10,000 on sale of a piece of machinery. What are the funds from operation ?
(A) Rs. 2,00,000 
(B) Rs. 2,40,000 
(C) Rs. 2,50,000 
(D) Rs. 2,60,000 
Answer : C

6. Which of the following represents corporate sustainable reporting ?
(A) Publishing annual financial statement only
(B) Publishing annual financial statements and social accounts
(C) Publishing social and environmental accounts annually
(D) Publishing annual financial statements incorporating economic, social and environmental performances 
Answer : D

7. Sometimes an auditor is called upon to review the operations of an enterprise for evaluating their cost-effectiveness. What is this kind of audit generally known as ?
(A) Cost Audit 
(B) Operations Audit 
(C) Tax Audit 
(D) Independent Financial Audit 
Answer : A

8. Which one of the following is not included in the internal check as regards purchases ?
(A) Assessment of requirements 
(B) Placing orders
(C) Despatch of goods 
(D) Recording and making payments 
Answer : C

9. What is the method in which an amount equal to the amount written off as depreciation is invested in outside securities in order to facilitate replacement of an asset at the expiry of its life period, called ?
(A) Annuity Method 
(B) Sinking Fund Method
(C) Replacement Method 
(D) Depletion Method 
Answer : B

10. What is Capital Redemption Reserve Account available for ?
(A) Redemption of redeemable preference shares
(B) Redemption of redeemable debentures
(C) Reorganization of share capital
(D) Issue of fully paid bonus shares 
Answer: D

11. Government grants related to income as per the Accounting Standard (AS)-12 should be—
(A) Presented as a credit in the statement of Profit and Loss
(B) Presented as a deferred income on the asset side of the balance sheet
(C) Presented as a capital grant on the liability side of balance sheet
(D) Presented both in the Profit and Loss statement and in the balance sheet 
Answer: D

12. What is the renewal fees paid for a patent right ?
(A) Capital expenditure 
(B) Revenue expenditure
(C) Deferred revenue expenditure
 (D) Development expenditure 
Answer : B

13. According to the Accounting Standard (AS)-2, the inventory is to be valued at which one of the following ?
(A) Actual cost or sales value, whichever is lower 
(B) Historical cost
(C) Net realizable value 
(D) Historical cost or net realizable value, whichever is lower
Answer : D

14. Which of the following is affected by treatment of an accrued item in accounting ?
(A) Profit and Loss A/c only 
(B) Profit and Loss Appropriation A/c
(C) Balance Sheet only 
(D) Profit and Loss A/c and Balance Sheet 
Answer: D

15. Which one of the following statements about preparation of financial statements of a limited liability company is correct ?
(A) Financial statements should
be prepared according to the cash basis of accounting only
(B) Financial statements should be prepared according to the accrual basis of accounting only
(C) Financial statements should be prepared according to either the cash basis or accrual basis of accounting
(D) Financial statements should be prepared according to both the accrual and cash basis of accounting 
Answer : B

16. Expenses need to be recorded in the period in which the associated revenues are recognised. This is to be ensured as per which one of the following accounting principles ?
(A) Revenue recognition 
(B) Cost benefit
(C) Matching 
(D) Periodicity 
Answer : A

17. How is profit prior to incorporation treated as ?
(A) Revenue reserve 
(B) Secret reserve
(C) Capital reserve 
(D) General reserve 
Answer : C

18. Which one of the following has replaced the Budla system in India ?
(A) Rolling settlement 
(B) Trading in equity derivatives
(C) Depository system 
(D) Online trading 
Answer : A

19. What is the theory of social responsibility that focuses on how companies respond to issues, rather than trying to determine their ultimate social responsibility, called ?
(A) Corporate social performance 
(B) Corporate social responsiveness
(C) Stewardship principle 
(D) Enlightened self-interest
Answer: A

20. What is a systematic evaluation of a company's activities in a given area of social interest such as environmental protection, workplace safety or community
involvement, called ?
(A) Social responsibility 
(B) Social accounting
(C) Social audit 
(D) Social forecasting 
Answer : C

21. What is cross rate ?
(A) A rate of exchange derived from central bank
(B) A rate of exchange between two currencies, other than those that form a market's principal rates
(C) A rate of exchange derived from the quotations for buying currencies
(D) A rate of exchange quoted by a dealer in foreign exchange for selling currencies
Answer : B

22. In foreign trade, what is the price quoted by a supplier which includes all charges incurred up to door delivery of goods to the buyer, called ?
(A) Loco price 
(B) C.I.F. price  
(C) Franco price 
(D) Landed price 
Answer : C

23. Under which principle, all the rights of an insured are transferred to insurance company after making payment of claim ?
(A) Subrogation 
(B) Utmost good faith 
(C) Contribution 
(D) Average clause 
Answer : A

24. In a marine insurance, when must the insurable interest exist ? 
(A) At the time of making contract
(B) At the time of loss of subject matter
(C) Both at the time of making contract and at the time of loss of subject matter
(D) At the time of termination of the policy 
Answer : B

25. Under which one of the following is the term ‘Dominant Undertaking’ defined ?
(A) MRTP Act 
(B) FEMA 
(C) Companies Act 
(D) SEBI
Answer : C

Commerce - MCQ Important Questions and Answers Part - 1

1. FEMA stands for_____
(A) Foreign Exchange Management Act
(B) Funds Exchange Management Act
(C) Finance Enhancement Monetary Act
(D) Future Exchange Management Act
Answer: Foreign Exchange Management Act

2. What of the following is false about W.T.O.?
(A) It is the main organ for implementing the Multilateral Trade Agreement
(B) It is global in its membership
(C) It has far wider scope than GATT
(D) Only countries having more than prescribed level of total GDP can become its member
Answer: Only countries having more than prescribed level of total GDP can become its member

3. Convertibility of the rupee implies____
(A) Being able to convert rupees notes into gold
(B) Allowing the value of the rupee to be fixed by marketforces
(C) Freely permitting the conversion of rupee to other major currencies and vice versa
(D) Developing an international market for currencies in India
Answer: Freely permitting the conversion of rupee to other major currencies and vice versa

4. _________ has been founded to act as permanent watchdog on the international trade.
(A) ISRD 
(B) ADS
(C) WTO
(D) DIMF
Answer: WTO

5. Which of the following statement is correct?
(A) The disinvestment programme has been successfully carried out in India
(B) Privatisation up to 100% has been carried out in all the PSU in India
(C) Under strategic sale method of disinvestment, the government sells a major share to a strategic partner
(D) None of the above
Answer: Under strategic sale method of disinvestment, the government sells a major share to a strategic partner

6. Advance Income-tax is shown in the _______
(A) Debit side of Profit and Loss Account
(B) Liability side of the Balance Sheet
(C) Credit side of Profit and Loss Account
(D) Assets side of the Balance Sheet
Answer: Assets side of the Balance Sheet

7. A and B were sharing profits of a business in the ratio of 3 : 2. They admit C into partnership, who gets 1/3 of A’s share of profit from A, 1/2 of B’s share of profit from B.
The new profit sharing ratio will be–
(A) 3 : 2 : 5 
(B) 2 : 1 : 2
(C) 3 : 2 : 1 
(D) 3 : 2 : 2
Answer: 2 : 1 : 2

8. In the absence of a Partnership Deed, the rate of interest allowed on the partner’s loan to the firm is_____
(A) 5% 
(B) 6%
(C) 10% 
(D) None of the above
Answer: 6%

9. Interim Dividend is shown–
(A) In Profit and Loss Account
(B) In Profit and Loss Appropriation Account
(C) On Asset side of Balance Sheet
(D) On Liabilities side of Balance Sheet
Answer: In Profit and Loss Appropriation Account

10. Redeemable Preference shares of Rs. 1‚00‚000 are redeemed at a premium of 5%. With this object equity shares of Rs. 40‚000 are issued at par. What amount should be transferred to Capital Redemption Reserve Account ?
(A) Nil 
(B) Rs. 1‚05‚000
(C) Rs. 65‚000 
(D) Rs. 60‚000
Answer: Rs. 60‚000

11. Match List-I with List-II and select the correct answer from the codes given below–
List-I
(a) Planning 
(b) Staffing
(c) Directing 
(d) Controlling
List-II
1. Training 2. Forecasting
3. Evaluating 4. Motivating
Codes :
(a) (b) (c) (d)
(A) 2 4 1 3
(B) 1 2 3 4
(C) 2 1 4 3
(D) 3 4 2 1
Answer: 2 1 4 3

12. Memorandum of Association contains_____
(A) Objective clause 
(B) Name clause
(C) Capital clause 
(D) All of the above
Answer: All of the above

13. ‘Table A’ is an alternative to_____
(A) Prospectus 
(B) Articles of Association
(C) Memorandum of Association 
(D) None of the above
Answer: Articles of Association

14. The ‘Doctrine of Indoor Management’ provides protection to the_____
(A) Board of Directors 
(B) Shareholders
(C) Managing Director 
(D) Outsiders
Answer: Outsiders

15. By which of the following methods a Company Secretary can be removed from his post ?
(A) By passing a resolution in Board Meeting
(B) By order of Registrar of Companies
(C) By passing a resolution in Annual General Meeting
(D) None of the above
Answer: By passing a resolution in Board Meeting

16. Which one of the following statements is correct in respect of Duty Drawback Scheme ?
(A) Relieving export goods of duties paid for components used for manufacturing the export goods
(B) Providing cash incentives to exporters to compensate the duty paid by them in foreign countries
(C) Compensating importers to the extent of import duty paid by them for importing life-saving drugs
(D) Providing a facility for withdrawing the duty paid by exporters if their exports are rejected in foreign countries
Answer: Compensating importers to the extent of import duty paid by them for importing life-saving drugs

17. In foreign trade, what is the price quoted by a supplier which includes all charges incurred up to door delivery of goods to the buyer, called ?
(A) Loco price (B) C.I.F. price
(C) Franco price (D) Landed price
Answer: Franco price 

18. Consider the following statements______
1. Letter of credit cannot be opened by mail.
2. Contracts of export of goods and services against payment to be secured partly or fully beyond 90 days are treated as deferred payment exports.
Which of the statements given above is/are correct ?
(A) 1 only (B) 2 only
(C) Both 1 and 2 (D) Neither 1 nor 2
Answer: Both 1 and 2

19. Under which principle, all the rights of an insured are transferred to insurance company after making payment of claim ?
(A) Subrogation (B) Utmost good faith
(C) Contribution (D) Average clause
Answer: Subrogation 

20. In a marine insurance, when must the insurable interest exist ?
(A) At the time of making contract
(B) At the time of loss of subject matter
(C) Both at the time of making contract and at the time of loss of subject matter
(D) At the time of termination of the policy
Answer: At the time of loss of subject matter