09-04-2018 HSST JUNIOR COMMERCE

HSST JUNIOR COMMERCE

EXAM DATE:09-04-2018

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1.The requirement to hedge against a fall in stock prices by using futures of another stock is

A.A long hedge in the other stock futures

B.A short hedge in the other stock futures

C.Finding a cross hedge ratio using a beta approach

D.Either way the pay-off is the same

Ans:B

2.The second important function of management is

A.Organising

B.Staffing

C.Directing

D.Controlling

Ans:D

3.PAYE is with respect to

A.Advance payment of income tax

B.Tax planning

C.Tax evasion

D.Tax avoidance

Ans:A

4.The promising operating ratio is

A.25%

B.50%

C.75%

D.80%

Ans:C

5.The criterion to judge the performance of a mutual fund is

A.NPV

B.NAV

C.Dividend paid

D.Sensex

Ans:B

6.The Dormant company concept was introduced by----------of the Companies Act 2013.

A.Section 455

B.Section 450

C.Section 444

D.Section 405

Ans:A

7.Who did develop the abandonment stage in the PLC?

A.N.H.Borden

B.Theodore Levitt

C.William J.Standon

D.Philip Kotler

Ans:C

8.Take out financing is a kind of

A.Lease financing

B.Bank financing

C.Hire purchase financing

D.Merchant banking

Ans:B

9.The most appropriate definition of market is

A.The place where products are exchanged

B.The time when product are exchanged

C.Effective contact between the buyer and seller

D.The level of satisfaction of the seller

Ans:C

10.Puffer or a Decoy Duck is one who is employed by

A.The GST council of India to pin down the high net worth pesos

B.The auctioneer to raise the price by making fictitious bids

C.The Trade Tax department to check trade tax evasion

D.The Income Tax department to check tax evasion

Ans:B

11.If stock price is Rupee 30,Present value of exercise price is Rupee 25 and the call price is Rupee 6,the respective put should be

A.Rupee 1

B.Rupee 1.66

C.Rupee 1.83

D.Data not sufficient

Ans:A

12.In which of the IR approaches,the mutual negotiations and collective bargaining between the management and labourers has to be followed to settle the industrial disputes?

A.The unitary approach

B.The Gandhian approach

C.The Marxian approach

D.The Giri approach

Ans:D

13.What is the co-efficient of relative elasticity?

A.e>1

B.e<1

C.e=1

D.e=0

Ans:A

14.The budget estimates of Sitharam Co.Ltd.for the year 2009.2010 are as follows:Sales(unit):15,000;Fixed expenses:34000;Sales:1,50,000 and variable cost Rupee 6 per unit.What is the revised margin of safety,if the selling price is decreased by 10%?

A.33,000

B.33,003

C.33,050

D.33,060

Ans:B

15.-------------is the study that considers aggregate behaviour and the study of sum of individual economic decisions.

A.Macro economics

B.Micro economics

C.Normative economics

D.Positive economics

Ans:A

16.As per which section of the Income Tax Act,the total income is rounded off  to the nearest multiple of 10?

A.287 B

B.287 C

C.288 B

D.288 C

Ans:C

17.Which industry is the second largest provider of employment in India after agriculture?

A.Iron and steel

B.Transporters

C.Chemicals

D.Textiles

Ans:D

18.The following data give an analyst’s expected return on two stocks for particular market returns:

Market Return   Aggressive Stock         Defensive Stock

6%                              2%                                    8%

20                                30                                     16

What are the betas of the two stocks?

A.2 and0.571

B.2.5 and 0.571

C.2 and 5.71

D.None of these

Ans:A

19.If the mean of a binomial distribution is 4 and variance is 3,the number of items in the distribution is

A.10

B.12

C.16

D.09

Ans:B

20.X and Y are partners who share the profit and loss in the ratio of 2:3.Z is admitted into the partnership.Z brings Rupee 6000 in cash and his share of goodwill.They have decided to change the profit  and loss sharing ratio into 4:5:6 for X,Y and Z respectively.How will the goodwill be distributed at the time of admission of Z?

A.Credit X’s captial a/c by 2,000;Credit Y’s capital a/c by 4,000.

B.Credit X’s capital a/c by 4,000;Credit Y’s capital a/c by 2,000.

C.Credit Y’s captial a/c by 6,000.

D.Credit X’s capital a/c by 6,000.

Ans:A

21.The (1-p)in the Binomial valuation model is

A.Derived from the p that is computed

B.The risk-free rate of return

C.Always higher than p

D.Both(b)and (c)

Ans:A

22.When the materials are priced at the value that is realizable at the time of issue,such pricing method is called

A.HIFO

B.Standard price method

C.Weighted average method

D.Replacement method

Ans:D

23.Which among the following is the basic drive that gives the urge to take up a certain type of career?

A.Career path

B.Career goal

C.Career anchor

D.Career progression

Ans:C

24.If a person fails to furnish a report from an accountant relating to his international transactions,penalty of -------shall be imposed.

A.1,00,000

B.2,00,000

C.3,00,000

D.4,00,000

Ans:A

25.While calculating the  income tax,interest on securities held by local authority is

A.Fully taxable

B.Partially taxable

C.Considered only for rate purposes

D.Fully exempt

Ans:D

26.IDBI bank is

A.Development bank in the Government sector

B.Commercial bank in the Government sector

C.Commercial bank in the private sector

D.Development bank in the private sector

Ans:D

27.If two samples of size 9  and 11 have means 6 and 8.8,and variances 36 and 25 respectively,then value of’t’is

A.0.148

B.1.83

C.0.81

D.None of the above

Ans:C

28.The NSS is better means of investment because of

A.Tax deferment

B.High rate of interest

C.Liquidity

D.None of these

Ans:A

29.Lead time refers to

A.The time the finished goods lie as inventories

B.The period in which a whole lot of inventory is consumed

C.The time gap between placing of the order and procuring the materials

D.The work in progress time

Ans:C

30.A barrier call has a knock-out value of 85/-.What is the impact if the stock reaches this value?

A.The call is immediately exercisable

B.There is no call

C.The exercise price is deemed to be 85/-

D.Cannot say

Ans:B

31.Which of the following is correct about co-efficient of correlation?

A.r=1

B.r<1

C.r=0

D.All of these

Ans:D

32.What is the wage payable to Mr.Raman under the Halsey plan if he completes the work by 15 hours against  the standard time of 20 hours?Assume an hourly rate of 4/-

A.66.66

B.70.00

C.73.50

D.80.00

Ans:B

33.Which of the following theories was developed by Edwin Locke?

A.Carrot and Stick theory

B.Equity theory

C.Decision theory

D.Goal setting theory

Ans:D

34.What  is the stock price in real options valuation applying the Black Scholes model?

A.The pessimistic price of the asset as per today’s estimation

B.The optimistic price of the asset as per today’s estimation

C.The price of the asset as per expected value today

D.None of the above

Ans:C

35.The demand curve of conspicuous goods is

A.Downward sloping

B.Upward sloping

C.Parallel to the X axis

D.Parallel to the Y axis

Ans:B

36.The Indian company gets income tax deduction for contribution to a political party under Section

A.80 G

B.80 GG

C.80 GGA

D.80 GGB

Ans:D

37.Which five year plan did recognize the integral link between rapid economic growth and the quality of the mass of the people?

A.7^th plan

B.8^th plan

C.9^th plan

D.10^th plan

Ans:C

38.CBCT stands for

A.Customer Naml Credit Terminal

B.Commercial Banking Credit Terminal

C.Commercial Bank Commnication Terminal

D.Customer Bank Communication Terminal

Ans:D

39.The report of cost audit is furnished to the

A.Shareholders

B.Management

C.Central Government

D.State Government

Ans:C

40.The difference between the initial capital outlay and the total present value of stream of cash flow of a given rate of discount is called

A.NPV

B.IRR

C.ARR

D.NWC

Ans:A

41.In a distribution which is exactly normal,7% of the items are under 35  and 89% are under 6.What is the standard deviation of distribution?

A.13.50

B.10.35

C.0.135

D.Information not sufficient

Ans:B

42.In perfect competition,t he AR and MR curves are

A.Same and parallel to the X axis

B.same and parallel to the Y axis

C.Different and the AR curve is below to the MR curve

D.Different  and the MR curve  is below to the AR curve

Ans:A

43.Which theory of wages is called’Iron Law  Wages’?

A.Wages fund theory

B.Subsistence theory

C.Surplus value theory

D.Bargaining theory

Ans:B

44.The interval between two AGMs of a company should not be more than

A.12 months

B.15 months

C.18 months

D.20 months

Ans:B

45.The relationship between equity capital and long term debt is known as

A.Capital gearing

B.Capital budgeting

C.Financial leverage

D.Trading on equity

Ans:A

46.What would be the market price if the next year’s dividend is 20%, required rate of return is 10% and the growth rate is 15% as per the constant growth model?
A.55

B.50

C.45

D.40

Ans:D

47.In exchange,which floating is generally received by a bank?

A.TRS

B.CDS

C.CDO

D.All of these

Ans:B

48.When  a monopolist divides the market into two or more groups and charges different prices from each group,it is called price discrimination of -------order.

A.First

B.Second

C.Third

D.Fourth

Ans:C

49.In which way the estimated losses that can be foreseen for a contract is treated?

A.Ignore until they are known to be accurate with reasonable certainty

B.Write-off in the same proportion as any estimated profits are recognized

C.Write-off only if the work to which they belong is complete by 50%

D.Write-off immediately when they are estimated

Ans:D

50.In process cost computations,the cost of ending work in progress inventory  is calculated on

A.The total costs to account for schedule

B.The quantities schedule

C.The computation of equivalent production

D.None of the above

Ans:C

51.Company X Ltd has a 3 of 1.5.The expected return is 15% and the risk-free rate of interest is 5%.What is the market return?

A.6.67%

B.8.33%

C.8.66%

D.12.33%

Ans:A

52.The distinction between joint products and by products is largely dependent upon

A.The point of split off of each product

B.The market value of the product

C.The differential cost of each product

D.The management’s discretion

Ans:B

53.The standard overheads are determined on the basis of

A.Standard output

B.Budgeted output

C.Actual output

D.Production capacity

Ans:C

54.Hike in the bank rate

A.Keeps both cost of credit and demand for money constant

B.Increases the cost of credit and increases the demand for money

C.Decreases the cost of credit and increases the demand for money

D.Increases the cost of credit and decreases the demand for money

Ans:D

55.If the probability of getting head is 0.4.what is the probability of getting two heads of a coin when it is tossed three times?

A.0.288

B.0.024

C.0.248

D.0.096

Ans:A

56.The T-Bill futures are bought for a hedge during a period when

A.The interest rates cannot be predicted

B.The interest rates are likely to be stable

C.The interest rates are likely to come down

D.All of the above

Ans:C

57.An ROP would be attached to a

A.Simplex channel

B.Full duplex channel

C.Duplex channel
D.Half duplex channel

Ans:A

58.Purchasing of shares with funds borrowed from broker is

A.Domestic trading

B.Margin trading

C.Option dealing

D.Foreign trading

Ans:B

59.Size of critical region is known as

A.Size of the cost

B.Size of the type II Error

C.Size of the type I Error
D.Critical value of the test statistics

Ans:A

60.The Black-Scholes option pricing theory is based on the following assumption.

A.There is cyclical change in interest rates

B.The stock pays regular dividends

C.The stock price movement is taken to be random

D.The call option can be exercised any time during its life period

Ans:C

61.Pools and Cartels are forms of

A.Amalgamation

B.Partnership

C.Federation

D.Joint Ventures

Ans:C

62.Anonymous donations are taxable under------of the income tax

A.Section 114 BBB

B.Section 115 BBB

C.Section 114 BBC

D.Section 115 BBC

Ans:D

63.Insurable interest should exist at the time of enrolment itself in

A.Life insurance

B.Fire insurance

C.Marine  insurance

D.All of the abvoe

Ans:A

64.Which bonus plan is increased along with the increase in the efficiency?

A.Accelerated premium plan

B.Barth variable bonus plan

C.Gnatt’s task bonus plan

D.None of these

Ans:D

65.MRP stands for

A.Management Resource Planning

B.Management Research Planning

C.Material Requirement Planning

D.Material Resource Planning

Ans:C

66.Which of the followng TCP/IP protocol is used for remote connection service?

A.TELNET

B.FTP

C.RARP

D.None of these

Ans:A

67.The concept of reciprocal demand was introduced by

A.Louis Blank

B.Schmoller

C.J.B.Say

D.J.S.Mill

Ans:D

68.The origin of merchant banking was in

A.12^th Century

B.13^th Century

C.14^th   Century

D.15^th  Century

Ans:B

69.Hawthrone studies are related to which stage of organizational behavior evolution?

A.Industrial revolution

B.Scientific management

C.Functional management

D.None of these

Ans:D

70.Allocation of resource to the States is the primary duty of

A.The NITI Ayog

B.The Finance Commission

C.The RBI

D.The Pay Commission

Ans:B

71.A group of verbal and non verbal behavior used to prove the effectiveness of teaching is called as

A.Teaching attitude

B.Teaching aptitude

C.Teaching skill

D.Teaching ability

Ans:C

72.An evaluation tool which involves a coherent set of criteria for students  work with  description of levels of performance is known as

A.Rubrics

B.Journaling

C.Portfolio

D.Matrix

Ans:A

73.The specific competency of a teacher who achieve educational objectives through meaningful interaction between teachers,pupils and the environment by using different approaches in an integrated and effective manner.

A.Transactional competency

B.Contextual competency

C.Content competency

D.Conceptual competency

Ans:A

74.An instructional aid that allows computer images to be displayed into a board using a digital projector is

A.LCD projector

B.DLP projector

C.Interactive whiteboard

D.Opaque projector

Ans:C

75.When teacher plan a lesson,the first priority is given to

A.The content to be taught

B.The objectives to be achieved

C.The group to be taught

D.The tasks to be presented

Ans:B

76.The sampling technique in which the population is categorized in to a number of non-overlapping sub populations and sample items are selected from each category is called as

A.Stratified sampling

B.Systematic sampling

C.Cluster sampling

D.Quota sampling

Ans:A

77.The most significant scientific research method is

A.Normative survey method

B.Experimental method

C.Case study method

D.Historical method

Ans:B

78.The scale of measurement which has an absolute zero measurement is termed as

A.Interval scale

B.Ratio scale

C.Nominal scale

D.Ordinal scale

Ans:B

79.Converting someone else’s ideas into your own words is called

A.Quote

B.Copy

C.Paraphrase

D.Summarize

Ans:C

80.The following one is least significant with regard to ethical principles of social science research.

A.Professional competence

B.Integrity

C.Scientific responsibility

D.Personal morale

Ans:D

81.In the opinion of Dr.B.R.Ambedkar which Article can be called as the heart and soul of our Constitution?

A.Art.19

B.Art.21

C.Art.22

D.Art.32

Ans:D

82.In which year fundamental duties are inserted in our Constitution?

A.1950

B.1976

C.1979

D.1985

Ans:B

83.The size of the council of ministers was determined by which Amendment?

A.85^th

B.44^th

C.91^st

D.92^nd

Ans:C

84.Which Article gave power to the union Govt.to legislate on any list during to period of National emergency?

A.Art.249

B.Art.250

C.Art.252

D.Art.256

Ans:B

85.24^th Amendment Act of Indian Constitution passed in which year?

A.1971

B.1976

C.1978

D.1979

Ans:A

86.The Environment Protection Act 1986 came in to force on

A.22.03.1986

B.19.11.1986

C.24.08.1986

D.28.04.1986

Ans:B

87.The sexual harassment of women at work place(Prevention,Prohibition and Redressal) Act came in to force in which year?

A.2012

B.2013

C.2014

D.2015

Ans:B

88.The MGNREGA is to be implemented mainly by

A.Grama Sabha

B.Grama Panchayath

C.Block Panchayath

D.District Panchayath

Ans:B

89.SC and ST (Prevention of Atrocities)Act enacted in the year

A.1989

B.1990

C.1986

D.1988

Ans:A

90.The THO Act was passed in India in the year.

A.1993

B.1999

C.1995

D.1994

Ans:D

91.Who among the following was a member of Cochin Legislative Council for a period of three years?

A.Barrister G.P.Pillai

B.C.Krishnan

C.Moorkoth Kumaran

D.Pandit K.P.Karuppan

Ans:D

92.What was the motto of the Malabar Economic Union founded  by Dr.Palpu?

A.Industry through confidence

B.Thrive through industry

C.Profit through industry

D.Industry through union

Ans:B

93.’Sadhujan Dootan’ is associated with

A.Ayyan Kali

B.K.P.Vellon

C.Pampadi John Joesph

D.Kumara Guru

Ans:C

94.Who published the weekly ‘Dharma Poshini’?

A.Dr.Ayyathan Gopalan

B.Velukkutty Arayan

C.T.K.Madhavan

D.C.V.Kunjuraman

Ans:B

95.’Veenapoovu’written by Kumaran Asan was first published in

A.Mithavadi

B.Vivekodayam
C.Prabhatham

D.Swadeshabhimani

Ans:A

96.The Mughal emperor who introduced ‘Jharoka Darshan’?

A.Humayun

B.Babur

C.Akbar

D.Shahjahan

Ans:C

97.Who wrote the book’The Last Moghul’?

A.William  Dairymple

B.Ramachandra Guha

C.Amartya Sen

D.Perry Andersen

Ans:A

98.Which country formally hands over Hambantota port to China on a 99 year lease?

A.Sri Lanka

B.South Korea

C.Indonesia

D.Singapore

Ans:A

99.India’s first National Rail and Transportation University will be set up at

A.Chennai

B.Hyderabad

C.Nagpur

D.Vadodara

Ans:D

100.The recipient of Nobel Prize for Economics in the year 2017

A.Jeffrey.C.Hall

B.Richard.H.Thaler

C.Rainer Weiss

D.George Saunders

Ans:B