2013 June UGC NET Solved Question Paper in Commerce Paper 3

 


1. Under the provisions of the Industries (Development and Regulation) Act, 1951, a licence is necessary for

(A) Changing the location of an existing industrial undertaking.

(B) Producing or manufacturing a ‘new article’ in an existing industrial undertaking.

(C) Establishing a new undertaking.

(D) All of the above.

Answer: (D)

 

2. Match the items of List-I with the items of List-II and select the correct answer.

List – I                                                                        List – II

(i) Political and Legal Environment                            (a) Important for industries directly depending on imports or exports.

(ii) Demographic Environment                                   (b) Close relationship with the economic system and economic policy.

(iii) Economic Environment                                        (c) Related to natural resources.

(iv) Geographical and Ecological Environment          (d) Occupational and spatial mobilities of population having implications for business.

Codes:

      (i) (ii) (iii) (iv)

(A) (b) (d) (c) (a)

(B) (b) (d) (a) (c)

(C) (a) (b) (c) (d)

(D) (a) (b) (d) (c)

Answer: (B)

 

3. Match the items of List-I with the items of List-II and select the correct answer:

List – I            List – II

(i) SLR            (a) Working in the field of consumer protection.

(ii) SIDBI        (b) Credit control.

(iii) CUTS       (c) Industrial policy.

(iv) ILPIC       (d) Facilitating Small Scale Industries.

Codes:

       (i) (ii) (iii) (iv)

(A) (a) (c) (d) (b)

(B) (b) (d) (a) (c)

(C) (a) (b) (c) (d)

(D) (a) (c) (b) (d)

Answer: (B)

 

4. Match the following:

List – I                                                                        List – II

(i) National Stock Exchange                                       (a) Marks the beginning of the process of dematerialisation of shares of the participating companies.

(ii) National Securities Depository Limited                (b) Facilitation of equal access to investors across the country.

(iii) Securities and Exchange Board of India                         (c) To foster the development of an active secondary market for Government Securities.

(iv) SecuritiesTradingCorporationofIndia                  (d) Abolition ofCapital issuescontrol and retaining the sale authority for new capital issues.

Codes:

       (i) (ii) (iii) (iv)

(A) (b) (a) (d) (c)

(B) (a) (b) (c) (d)

(C) (a) (b) (d) (c)

(D) (d) (c) (b) (a)

Answer: (A)

 

5. The United Nations Conference on Trade and Development (UNCTAD) was set up in

(A) 1944

(B) 1954

(C) 1960

(D) 1964

Answer: (D)

 

6. Indicate the ground on which a complaint under the Consumer Protection Act, 1986, shall be invalid.

(A) A product having short weight.

(B) A service provided free of cost.

(C) A misleading advertisement given in newspaper.

(D) None of the above.

Answer: (B)

 

7. Out of the following, which are the four components of food security?

(i) Food availability

(ii) Food market

(iii) Food accessibility

(iv) Food utilization

(v) Food credit

Codes:

(A) (iii), (iv) and (v)

(B) (i), (iii) and (iv)

(C) (i), (ii) and (iii)

(D) (i), (ii) and (iv)

Answer: (B)

 

8. Performance evaluation of a responsibility centre can be done by

(A) ROI

(B) Return on sales

(C) EVA

(D) All of the above

Answer: (D)

 

9. Social Balance Sheet shows

(A) Social costs

(B) Social revenues

(C) Value of employees of the organisation

(D) All of the above

Answer: (C)

 

10. Which of the following comes under efficiency ratios?

(A) Average collection period

(B) Inventory turnover ratio

(C) Fixed assets turnover ratio

(D) All of the above

Answer: (D)

11. Match the items of the following two lists:

List – I                                                                        List – II

(i) Statement of changes in Working Capital              (a) Cash Flow Statement

(ii) Deferred Tax                                                         (b) Fixed Assets

(iii) Three activities                                                     (c) Funds Flow Statement

(iv) Impairment Loss                                                   (d) Balance Sheet

Codes:

       (i) (ii) (iii) (iv)

(A) (a) (b) (c) (d)

(B) (c) (d) (b) (a)

(C) (c) (d) (a) (b)

(D) (d) (c) (a) (b)

Answer: (C)

 

12. Match the items of the following two lists and indicate the correct answer:

List – I                                    List – II

(i) Earning ability of firm        (a) Basis of Accounting

(ii) Conservatism                     (b) P/V ratio

(iii) Cash profit                        (c) Cash flow statement

(iv) Cash and Accrual             (d) Prudence

Codes:

       (i) (ii) (iii) (iv)

(A) (b) (d) (c) (a)

(B) (b) (a) (d) (c)

(C) (c) (d) (a) (b)

(D) (c) (d) (b) (a)

Answer: (A)

 

13. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R).

Assertion (A): Only the relevant costs should be taken into consideration for decisionmaking.

Reason (R): All variable costs are relevant costs and all fixed costs are irrelevant costs.

In the above statements, which one alternative of the following is correct?

Codes:

(A) Both (A) and (R) are correct.

(B) Only (A) is correct, but (R) is wrong.

(C) Only (R) is correct, but (A) is wrong.

(D) Both (A) and (R) are wrong.

Answer: (B)

 

14. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R):

Assertion (A): Variance analysis is undertaken for planning and control of costs.

Reason (R): Future costs are taken into consideration in budgeting and standard costing.

In the above statements, which one alternative of the following is correct?

Codes:

(A) Both (A) and (R) are correct and (R) is the Reason for (A).

(B) Both (A) and (R) are correct and (R) is not the Reason for (A).

(C) (A) is correct, but (R) is wrong.www.netugc.com

(D) (A) is wrong, but (R) is correct.

Answer: (B)

 

15. Assertion (A): Mark-up pricing is a method of determining price.

Reason (R): P = ATC + (m × ATC) is the expression for that.

Codes:

(A) (A) is correct but (R) is not correct.

(B) Both (A) and (R) are correct.

(C) Both (A) and (R) are not correct.

(D) (R) is correct, but (A) is not correct.

Answer: (B)

 

16. Match the items of List-I with the items of List-II and select the correct answer.

List – I                                    List – II

(a) Economic profit                 (i) Total Revenue Explicit cost

(b) Accounting profit              (ii) Buyers and Sellers exchanging

(c) Collusion/ Cartel                (iii) Total Revenue – Total cost

(d) Market                               (iv) Oligopoly

Codes:

       (a) (b) (c) (d)

(A) (iii) (i) (iv) (ii)

(B) (i) (ii) (iii) (iv)

(C) (iv) (iii) (ii) (i)

(D) (ii) (iv) (i) (iii)

Answer: (A)

 

17. Which one is not the item of economic cost to the business?

(A) Owner supplied resources.

(B) Market supplied resources.

(C) Implicit costs.

(D) Non-monetary opportunity costs of using owner supplied resources.

Answer: (B)

 

18. Demand must have the elements

(A) Desire

(B) Want

(C) Quantity, Price and Time

(D) All of the above

Answer: (D)

 

19. Match the items of List-I and items of List-II and select the correct code for the answer.

List – I                                                List – II

(a) Utilitarian Approach                      (i) Marginal Rate of Substitution

(b) Ordinal Approach                          (ii) Budget line & Indifference Curve

(c) Price- Consumption Curve            (iii) U=f (x, y)

(d) Consumer Equilibrium                  (iv) MRSxy = MRSyx

Codes:

      (a) (b) (c) (d)

(A) (i) (iv) (iii) (ii)

(B) (ii) (iii) (iv) (i)

(C) (iii) (i) (ii) (iv)

(D) (iv) (ii) (i) (iii)

Answer: (C)

 

20. The Learner Index measures

(A) Market power

(B) Price

(C) Price-Marginal cost

(D) None of the above

Answer: (A)

21. Match the items of List-I and items of List-II and select the correct answer.

List – I                                                List – II

(a) Perfect competition                       (i) Different prices for the same product

(b) Monopolistic competition (ii) Dominant strategy

(c) Oligopoly                                       (iii) Product differentiation

(d) Discriminating Monopoly             (iv) Identical product

Codes:

       (a) (b) (c) (d)

(A) (iv) (iii) (ii) (i)

(B) (i) (ii) (iii) (iv)

(C) (ii) (iv) (i) (iii)

(D) (iii) (i) (iv) (ii)

Answer: (A)

 

22. If there are 8 possible classes under consideration for goodness of-fit, the number of degrees of freedom will be

(A) 8

(B) 7

(C) 6

(D) Cannot be determined from the given information.

Answer: (D)

 

23. Identify from the following, the test statistic for which the value of numerator should always be greater than that of denominator.

(A) ‘Chi-square’

(B) ‘F’ value

(C) ‘Z’ value

(D) ‘t’ value

Answer: (B)

 

24. Which of the following tests can be applied to ordinal scale data?

(i) Chi-square test

(ii) ‘Z’ test

(iii) Kruskal-Wallis test

(iv) Wilcoxon Mann-Whitney test

Codes:

(A) (i), (ii) and (iii)

(B) (ii), (iv) and (iii)

(C) (i), (iii) and (iv)

(D) (i), (ii) and (iv)

Answer: (C)

 

25. Which of the following tests can be based on the normal distribution?

(A) Difference between independent means

(B) Difference between dependant means

(C) Difference between proportions

(D) All of the above

Answer: (D)

 

26. From the following, identify one situation where ‘F’ test cannot be used?

(A) To compare more than two populations means.

(B) To test the hypothesis about a single population variance.

(C) To test the hypothesis about two-population variance.

(D) To study about randomized block design.

Answer: (B)

 

27. Which statistical test should be applied to test the effectiveness of ‘special coaching’ on the marks scored by the students?

(A) Paired‘t’ test

(B) ‘Chi-square’ test

(C) ‘Z’ test

(D) ‘F’ test

Answer: (A)

 

28. In a linear equation, y = a + bx, ‘a’ refers to

(A) Slope

(B) Y-intercept

(C) Dependant variable

(D) Independent variable

Answer: (B)

 

29. Which among the following is the most popular approach for accomplishing the results?

(A) Management by exception

(B) Reward system

(C) Management by objectives

(D) Mentor system

Answer: (C)

 

30. The managerial function of organizing involves

(A) Reviewing and adjusting plan in the light of changing conditions.

(B) Establishing programme for the accomplishment of objectives.

(C) Creating structure of functions and duties to be performed.

(D) Getting things done through others.

Answer: (C)

 

31. A leader who identifies what subordinates need to do to achieve objectives, clarify organizational roles and tasks, set up an organization structure, reward performance and provide for the social needs of their followers, is

(A) A transformational leader

(B) A participative leader

(C) A transactional leader

(D) An autocratic leader

Answer: (C)

 

32. Which of the following is not an assumption of theory X?

(A) An average human being has an inherent dislike of work and will avoid it if he can.

(B) An average human being prefers to be directed, seeks to avoid responsibility, has relatively little ambition, and wants security above all.

(C) An average human being learns under proper conditions, not only to accept responsibility but also to seek it.www.netugc.com

(D) Most people must be coerced, controlled, directed and threatened with punishment to get them put forth adequate effort.

Answer: (C)

 

33. If a network of interpersonal relationship that arise when people associate with each other is an informal organization, then find out which of the following is not an informal organization?

(A) The “machine shop” group

(B) Customers’ group

(C) The “sixth floor” group

(D) The “Friday evening bowling” gang

Answer: (B)

 

34. Which of the following are sources of ethics?

(i) Religion

(ii) Legal system

(iii) Economic system

(iv) Culture

(v) Family system

Select the correct answer from the codes given below:

(A) (i), (ii), (iii), (v)

(B) (i), (ii), (iv)

(C) (i), (iv), (v)

(D) (i), (ii), (iii), (iv), (v)

Answer: (C)

 

35. Which of the following has refined Maslow’s theory of motivation by proposing a hierarchy of three needs?

(A) MeClelland

(B) Aldorfer

(C) Herzburg

(D) Vroom

Answer: (B)

 

36. Which segmentation approach is the most compatible with the spirit of the marketing concept?

(A) Benefit sought

(B) Income

(C) Social class

(D) Family size

Answer: (A)

 

37. The description of a product’s quality, features, style, brand name and packaging identifiers the

(A) Actual product

(B) Augmented product

(C) Core product

(D) Tangible product

Answer: (A)

 

38. Consider the following statements and find out the correct alternative from the codes given below:

(i) A firm’s marketing information system is a component of its marketing research system.

(ii) The most common forms of marketing researches conducted in most of the firms are the measurement of market potential and the analysis of market share.

(iii) Survey research is seldom used for studying consumer perception and attitudes.

(iv) The concept of cognitive dissonance is relevant to study consumer’s post-purchase behaviour.

Codes:

(A) All the statements are true.

(B) All the statements are false.

(C) (i) is false and the rest are true.

(D) (ii) and (iv) are true and the rest are false.

Answer: (D)

 

39. In India, which pricing practice is not permissible?

(A) Penetrating pricing

(B) Skimming pricing

(C) Predatory pricing

(D) None of the above

Answer: (C)

 

40. Consider the following statements and find out the correct alternative from the codes given below:

(i) A good salesman is one who can sell refrigerator to an Eskimo.

(ii) Salesmen are born, not made.

(iii) Physical distribution is an area where high cost-savings is possible.

Codes:

(A) (i) and (iii) are correct.

(B) (i) and (ii) are correct.

(C) (ii) and (iii) are correct.

(D) All are correct.

Answer: (A)

 

41. Which form of retail outlet has the highest operating costs?

(A) Super market

(B) Consumer co-operative store

(C) Department store

(D) Retail chain store

Answer: (C)

 

42. Consider the following statements and indicate the correct alternative from the codes given below:

(i) The product management system often turns out to be costly.

(ii) When customers belong to different user groups with distinct buying preferences and practices, a market management organization is not suitable.

(iii) Advertising department has the closest interface with the finance department of the company.

Codes:

(A) (i) and (ii) are correct.

(B) (ii) and (iii) are correct.

(C) Only (i) is correct.

(D) All are correct.

Answer: (C)

 

43. Match the statements in List-I with dividend models in List-II as follows:

List – I                                                                                                                        List – II

I Dividend Capitalisation Approach.                                                              1. Traditional Model

II Dividend Policy has a bearing on the share valuation.                               2. Gardon Model

III Stock Market places more weight on dividends than on retain earnings. 3. Walter Model

IV Dividend pay-out is irrelevant to the value of the firm.                            4. Modigliani and Miller Model

Codes:

       I II III IV

(A) 2 3 1 4

(B) 1 2 4 3

(C) 4 1 3 2

(D) 3 4 2 1

Answer: (A)

 

44. Venture capital financing at starting stage is generally not done through

(A) Debt instruments

(B) Deep discount bonds

(C) Equity shares

(D) Conditional loans

Answer: (B)

 

45. Match the statements in List-I with the types of lease in the List-II as follows:

List – I                                                                                                                        List – II

I Lessor transfer all risks and rewards of an asset to the lessee.                                 1. Indirect lease

II Lessor transfers the assets to the lessee but bears the cost of maintenance            2. Operating lease

III The owner of the asset sells it to the lessor who in turn leases it back to the owner (now lessee)                                                                                                                                    3. Finance lease

IV Lessor owns/ acquires the assets that are leased to a given lessee.                       4. Direct lease

Codes:

       I II III IV

(A) 2 3 4 1

(B) 1 4 2 3

(C) 3 2 1 4

(D) 4 1 3 2

Answer: (C)

 

46. Full details for the issue of ADRs by a company must be furnished within 30 days from the date of its closure to

(A) Securities and Exchange Commission (SEC)

(B) Reserve Bank of India (RBI)

(C) Securities and Exchange Board of India (SEBI)

(D) Company Law Board (CLB)

Answer: (B)

 

47. The degree to which the returns of the two securities change together, is reflected by

(A) Correlation

(B) Leverage

(C) Covariance

(D) Beta

Answer: (C)

 

48. The transfer by a company of one or more of its business divisions to another newly set up company is called

(A) Demerger

(B) Merger

(C) Equity Carve-out

(D) Disinvestment

Answer: (A)

 

49. What combination of the following factors influences the working capital requirement?

I Market Conditions

II Production Policy

III Firm’s goodwill

IV Supply conditions

Codes:

(A) I, II and III

(B) II, III and IV

(C) I, III and IV

(D) I, II and IV

Answer: (D)

 

50. Which of the followings are the modern methods of performance appraisal?

(i). 360 degree performance appraisal.

(ii). Graphic rating scale.

(iii). Management by Objectives (MBO).

(iv). Forced distribution method.

(v). Behaviourally Anchored Rating Scales (BARS).

Select the correct answer from the codes given below:

(A) (i), (ii), (iii)

(B) (ii), (iv), (v)

(C) (i), (iii), (v)

(D) (iv), (ii), (i)

Answer: (C)

 

51. Which of the following principle serves as a warning to organisations not to take the selection and promotion process lightly?

(A) Promotion Principle

(B) Drucker Principle

(C) Validity Principle

(D) Peter Principle

Answer: (D)

 

52. According to D. Katz morale has four dimensions:

(i) Jobs satisfaction

(ii) Satisfaction with wages and promotional opportunities.

(iii) Identification with company.

(iv) Pride in the work group.

(v) Top Management Support.

Select the correct combination.

(A) (i), (ii), (iii) and (iv)

(B) (i), (ii), (iii) and (v)

(C) (i), (ii), (iv), and (v)

(D) (i), (iii), (iv) and (v)

Answer: (A)

 

53. HRM is viewed as a management process, consisting of four functional activities:

(i) Acquisition

(ii) Motivation

(iii) Development

(iv) Resolution of industrial disputes

(v) Maintenance

Select the correct combination.

(A) (i), (ii), (iii) and (iv)

(B) (i), (ii), (iii) and (v)

(C) (i), (ii), (iv) and (v)

(D) (i), (iii), (iv) and (v)

Answer: (B)

 

54. O C TA PA C stands for

(A) Order, Co-ordination, Trust, Authority, Personality and Cooperation.

(B) Openness, Confrontation, Trust, Authenticity, Pro-action and Collaboration.

(C) Organisation, Conflict, Team, Authority, People and Collaboration.

(D) Oneness, Compromise, Tress pass, Authority, Protection and Combination.

Answer: (B)

 

55. Technique of ‘Transaction Analysis’ was developed by

(A) Elton Mayo

(B) Peter Drucker

(C) Eric Berne

(D) Adam Smith

Answer: (C)

 

56. Which one of the following methods is not a demand forecasting method of Human Resource Planning?

(A) Managerial judgement

(B) Managerial grid

(C) Work study techniques

(D) Statistical techniques

Answer: (B)

 

57. Transaction of Internet Banking excludes

(A) Withdrawal of cash anywhere in India.

(B) Statement of account for a specific period.

(C) Transfer of funds from one account to another account.

(D) Balance enquiry.

Answer: (A)

 

58. Which among the following is not a category of Non-Performing Assets?

(A) Substandard Assets

(B) Doubtful Debts

(C) Loss Assets

(D) Devaluated Assets

Answer: (D)

 

59. When a loan will be NPA?

(A) Interest and/or loan instalments overdue for more than 90 days.

(B) Account is out of order for more than 90 days in case of overdraft/cash credit.

(C) Bill remains overdue for more than 90 days.

(D) All of the above.

Answer: (D)

 

60. Assertion (A): “The problem of rural credit is not primarily one of rural credit, it may be said to be one of rural minded credit.”

Reason (R): The Indian economy has yet to come out of rural mentality.

Codes:

(A) Both (A) and (R) are correct.

(B) Both (A) and (R) are incorrect.

(C) (A) is correct, but (R) is incorrect.

(D) (R) is correct, but (A) is incorrect.

Answer: (C)

 

61. Match the items of List-I with the items of List-II and select the correct answer:

List – I                                    List – II

(i) Debit card                           (a) Several storage

(ii) Credit card                        (b) Online recovery of amount

(iii) Electronic purse                (c) Image processing use

(iv) Cheque function               (d) Revolving credit

Codes:

       (i) (ii) (iii) (iv)

(A) (c) (a) (d) (b)

(B) (a) (b) (d) (c)

(C) (d) (c) (a) (b)

(D) (d) (c) (b) (a)

Answer: (B)

 

62. Assertion (A): The Indian economy could survive in the recent global recession due to its strong banking system.

Reason (R): The Indian economy contains a large amount of black money.

Codes:

(A) Both (A) and (R) are correct and (R) is the explanation of (A).

(B) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).

(C) (R) is correct, but (A) is not the appropriate assertion of (R).

(D) Both (A) and (R) are incorrect.

Answer: (B)

 

63. Assertion (A): Most of the development banks in India have setup private commercial banks after the introduction of capital adequacy norms.

Reason (R): Development banks in India have not adhered to their basic objectives.

Codes:

(A) (A) and (R) both are correct, and (R) is correct explanation of (A).

(B) (A) and (R) both are correct, but (R) is not a correct explanation of (A).

(C) (A) is correct, but (R) is incorrect.

(D) (R) is correct, but (A) is incorrect.

Answer: (C)

 

64. Match the following items of List-I with List-II:

List – I                                                                                                List – II

(a) Bretton woods conference                                                            (i) 1947

(b) General Agreement on Trade and Tariffs                                     (ii) 1964

(c) ACCRA conference                                                                      (iii) 1944

(d) United Nations Conference on Trade and Development                         (iv) 2008

Codes:

       (i) (ii) (iii) (iv)

(A) (b) (d) (a) (c)

(B) (b) (d) (c) (a)

(C) (b) (c) (d) (a)

(D) (c) (a) (b) (d)www.netugc.com

Answer: (A)

 

65. The forces that lend momentum to the process of globalization have been identified by Michael Porter include the following:

(i) Fluid global capital market.

(ii) Technological restructuring.

(iii) Decreasing religious command.

(iv) Ethnic decontrol.

(v) New-global competitors.

(vi) End of the ‘cold war’ in 1990s.

Codes:

(A) (vi), (v), (iv) and (iii)

(B) (vi), (iii), (ii) and (i)

(C) (vi), (v), (ii) and (i)

(D) (iv), (iii), (ii) and (i)

Answer: (C)

 

66. Statement (I): Green Box subsidies include amount spent on Government services such as research, disease control, infrastructure and food security.

Statement (II): Blue Box subsidies are certain direct payments made to farmers, to limit production, and are certain government assistance programmes to encourage agriculture and rural development.

Codes:

(A) Statement (I) is correct, but (II) is not correct.

(B) Statement (II) is correct, but (I) is not correct.

(C) Both statements (I) and (II) are correct.

(D) Both statements (I) and (II) are incorrect.

Answer: (C)

 

67. Assertion (A): The major economic powers have succeeded in creating a new international regime where the profits and the dominance of their transnational corporations will be the decisive consideration.

Reason (R): This regime will legitimise the process of progressive erosion of the sovereign economic space of the third-world countries.

(A) Both (A) and (R) are correct, and (R) is the right explanation of (A).

(B) Both (A) and (R) are correct, but (R) is not the right explanation of (A).

(C) Both (A) and (R) are incorrect.

(D) (R) is correct, but (A) is not correct.

Answer: (B)

 

68. Assertion (A): The ‘Balance of Payments’ presents a classified record of all receipts on account of goods exported, services rendered and capital received by ‘residents’ and payments made by them on account of goods imported and services received from capital transferred to ‘non-residents’ or ‘foreigners”.

Reason (R): The ‘Balance of Payments’ of a country is a systematic record of all economic transactions between the ‘residents’ of a country and the rest of the world.

(A) Both (A) and (R) are correct and (R) is the right explanation of (A).

(B) Both (A) and (R) are correct, but (R) is not the right explanation of (A).

(C) (R) is correct, but (A) is not correct.

(D) Both (A) and (R) are incorrect.

Answer: (A)

 

69. Which among the following is not rightly explained?

(i) M1 = Currency with the public + demand deposits of the public.

(ii) M2 = M1 + Post Office Savings Deposits.

(iii) M3 = M1 + Time Deposits of the public with Banks.

(iv) M4 = M3 + Total Post Office Deposits.

(v) M1 = Narrow money

(vi) M3 = Broad money

(A) Only (v) and (vi)

(B) Only (i) and (iii)

(C) Only (vi)

(D) None of the above

Answer: (D)

 

70. Which of the followings are not effects of dumping on importing country?

(i) Domestic industry might be affected adversely by a decline in sales and profits.

(ii) If dumping is continued for a longer period, survival of the domestic industry may be threatened.

(iii) Dumping may create BOP problems for the country.

(iv) It finds market for its surplus production.

Codes:

(A) (i), (ii), (iii) and (iv)

(B) (ii), (iii) and (iv)

(C) (iii) and (iv)

(D) Only (iv)

Answer: (D)

 

71. Donation to National Children’s Fund will come in which of the following deduction under Sec. 80G of Income Tax Act, 1961.

(A) 100 percent deduction without any qualifying limit.

(B) 50 percent deduction without any qualifying limit.

(C) 100 percent deduction subject to qualifying limit.

(D) 50 percent deduction subject to qualifying limit.

Answer: (B)

 

72. If the taxable income of a domestic company for the Assessment Year 2011-12 is Rs. 9, 00,000, its tax liability will be

(A) Rs. 2, 76,800

(B) Rs. 2, 78,100

(C) Rs. 3, 70,800

(D) Rs. 3, 70,880

Answer: (B)

 

73. Unabsorbed depreciation which could not be setoff in the same assessment year, can be carried forward up to

(A) 4 years

(B) 8 years

(C) 10 years

(D) Indefinite period

Answer: (D)

 

74. If the book profits of a partnership firm is Rs. 1, 10,000, the remuneration admissible to working partners under Sec.40 (b) of the Income Tax Act, 1961 is

(A) Rs. 1, 10,000

(B) Rs. 1, 50,000

(C) Rs. 99,000

(D) None of the above

Answer: (B)

 

75. Which of the following expenses is inadmissible while computing income from other sources?

(A) Interest paid on amounts borrowed to meet tax liabilities.

(B) Collection charges paid to the banker or any other person to collect interest/dividend.

(C) Interest on loan taken to invest in securities.

(D) Depreciation on let-out machinery and plant.

Answer: (A)

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