MAHA SET Commerce Solved Paper April 2017 [Paper IlI]

MAHA SET Commerce Solved Paper April 2017 [Paper III]

MAHA SET Solved Question Paper Commerce

[Time: 2 hour, 120 Minutes; Maximum Marks: 150]

Note: This paper contains Seventy five (75) multiple choice questions, each carrying Two (2) marks. Attempt All questions.

In this post you will get MAHA SET Commerce Solved Paper April 2017 [Paper III] with Proper Explanation. MAHA SET General Paper 1 Solutions will also be available very soon on our website.

MAHA SET Exam is conducted every year by the Savitribai Phule Pune University. Question Papers of MAHA SET Exam is tough as compared to UGC NET Exam question paper. Syllabus of MAHA SET Exam and UGC NET exam is similar. You can refer MAHA SET Commerce syllabus for 2025 here.

1. Addition of a new product line in a company is ________.

(A) Diversification.

(B) Vertical integration.

(C) Horizontal integration.

(D) Graphic expansion.

Ans: (A) Diversification.

2. Which Act was replaced with the introduction of Competition Act 2002?

(A) FERA.

(B) MRTP.

(C) POTA.

(D) FEMA.

Ans: (B) MRTP.

3. ________ is a single act of comparison and learning for organisational improvement.

(A) Benchmarking.

(B) Feedback.

(C) Ranking.

(D) Job evaluation.

Ans: (A) Benchmarking.

4. Low income economies are sometimes referred to as ________.

(A) First world economies.

(B) Second world economies.

(C) Third world economies.

(D) Fourth world economies.

Ans: (C) Third world economies.

5. On retirement of a partner, continuing partners gain in terms of ________ ratio.

(A) Gaining.

(B) Capital.

(C) Profit sharing.

(D) Sacrificing.

Ans: (C) Profit sharing.

6. Profit on re-issue of forfeited shares is transferred to ________.

(A) Profit and Loss A/c.

(B) Capital Reserve A/c.

(C) Profit and Loss Appropriation A/c.

(D) General Reserve A/c.

Ans: (B) Capital Reserve A/c.

7. An investment centre can be evaluated by ________.

(A) Profit.

(B) Return on turnover.

(C) Present value of investment.

(D) Return on investment.

Ans: (D) Return on investment.

8. The main purpose of cost accounting is to ________.

(A) Assist the management in decision-making.

(B) Maximise profits and minimize losses.

(C) Comply the norms issued by the Government of India from time to time.

(D) Prepare cost accounts in line with the accounting standards.

Ans: (A) Assist the management in decision-making.

9. An indifference curve is usually convex to the origin because of:

(A) Increasing marginal rate of substitution.

(B) Diminishing marginal rate of substitution.

(C) Constant marginal rate of substitution.

(D) Variable marginal rate of substitution.

Ans: (B) Diminishing marginal rate of substitution.

10. (AC – AVC) x Output is:

(A) TC.

(B) TFC.

(C) TVC.

(D) AFC.

Ans: (B) TFC.

11. The products sold by rival firms in monopolistic competition are:

(A) Perfectly complementary.

(B) Perfectly substitutes.

(C) Complementary.

(D) Close substitutes.

Ans: (D) Close substitutes.

12. When AR of a firm is above its AC then:

(A) The firm will earn supernormal profits.

(B) The firm will achieve break-even point.

(C) The firm will earn normal profits.

(D) The firm will suffer losses.

Ans: (A) The firm will earn supernormal profits.

13. A study of entire population is called as ________.

(A) Census.

(B) Sample survey.

(C) Pilot survey.

(D) Random survey.

Ans: (A) Census.

14. If a random variable X follows Poisson distribution such that P (X = 1) = P (X = 2), then the mean of X is ________.

(A) 1.

(B) 2.

(C) 3.

(D) 4.

Ans: (B) 2.

15. A certain quantity is a total of certain number of components then we use ________ diagram to represent it.

(A) Bar.

(B) Line.

(C) Pie.

(D) Multiple bar.

Ans: (C) Pie.

16. If P(A) = 5P(A’), then P(A) = ________.

(A) 5.

(B) 1/5.

(C) 5/6.

(D) 1/6.

Ans: (C) 5/6.

17. ________ is a step in the process of controlling.

(A) Matching the actual performance with the standard set.

(B) Developing feed forward control.

(C) Organising delegation of authority.

(D) Working out span of management.

Ans: (A) Matching the actual performance with the standard set.

18. Decision-making requires:

(A) Designing organisation structure.

(B) Decentralisation of authority.

(C) Unity of command.

(D) Planning.

Ans: (D) Planning.

19. Effective leadership particularly depends on:

(A) Organisation Structure.

(B) Situation.

(C) Span of Control.

(D) Programme Design.

Ans: (B) Situation.

20. Motivation does not necessarily depend on:

(A) Motive.

(B) Superior.

(C) Organisation structure.

(D) Opportunity to fulfill social needs.

Ans: (C) Organisation structure.

21. Societal marketing concept gives more importance to ________.

(A) Customer satisfaction.

(B) Profits for the company.

(C) Domination of competitors.

(D) Welfare and well-being of the society.

Ans: (D) Welfare and well-being of the society.

22. A person’s consistently favourable or un-favourable evaluation, feelings and tendencies towards an object or idea is called as ________.

(A) Motive.

(B) Attitude.

(C) Belief.

(D) Perception.

Ans: (B) Attitude.

23. Which statement of the following is not correct?

(A) Green consumers purchase the products which are eco-friendly.

(B) Green consumers purchase the products which are packed in green colour papers only.

(C) Green consumers purchase the products which are re-cycled products.

(D) Green consumers purchase the products which are not prepared from threatened species.

Ans: (B) Green consumers purchase the products which are packed in green colour papers only.

24. In new product development process, when new product is launched on trial basis in a small geographical area, it is called as ________.

(A) Test marketing.

(B) Product marketing.

(C) Company testing.

(D) Policy Testing.

Ans: (A) Test marketing.

25. Which of the following factors does not influence a dividend policy?

(A) Liquidity position of a company.

(B) Market value of share.

(C) Legal restrictions.

(D) Size of business.

Ans: (D) Size of business.

26. From the following information, calculate the combined leverage:

	Rs.
Sales Variable Cost Fixed Cost Interest Tax Rate @	10,00,000 4,00,000 2,00,000 40,000 30%

(A) 1.67.

(B) 1.50.

(C) 1.11.

(D) 1.35.

Ans: (A) 1.67.

27. Capital structure designing has nothing to do with ________.

(A) Profitability.

(B) Flexibility.

(C) Corporate Governance.

(D) Liquidity.

Ans: (C) Corporate Governance.

28. According to D/P approach, if the market price of equity shares of a company (Face value Rs. 10) is Rs. 15 and dividend rate is @ 20%, cost of equity shares will be ________.

(A) 20%.

(B) 15%.

(C) 13.3%.

(D) 12.5%.

Ans: (C) 13.3%.

29. When a manager follows an interview guide but also asks other questions, what type of interview is being used by him?

(A) A structured interview.

(B) A semi-structured interview.

(C) An unstructured interview.

(D) An open interview.

Ans: (B) A semi-structured interview.

30. Provisions relating to strike and lock-out in industrial organisations are there in the:

(A) Payment of Wages Act.

(B) Industrial Disputes Act.

(C) Minimum Wages Act.

(D) Factories Act.

Ans: (B) Industrial Disputes Act.

31. Which of the following is not included in the model for formulating a career strategy?

(A) Assessment of personality traits.

(B) Implementation of the career plan.

(C) Long-range personal and professional goals.

(D) Personal profile.

Ans: (A) Assessment of personality traits.

32. Leading human resources is the process of influencing the activities of an individual or a group in efforts towards goal achievement in given ________.

(A) Structure.

(B) Situation.

(C) Organisation.

(D) Culture.

Ans: (B) Situation.

33. Which of the following is not a principle of bank lending?

(A) Collective responsibility.

(B) Liquidity.

(C) Security.

(D) Profitability.

Ans: (A) Collective responsibility.

34. Which of the following is not induced in three pillars of BASEL capital accord?

(A) Minimum capital requirement.

(B) Supervisory review.

(C) Market discipline.

(D) Core banking solutions.

Ans: (D) Core banking solutions.

35. What is full form of CTS?

(A) Call Trade System.

(B) Cheque Truncation System.

(C) Cheque Transmission System.

(D) Cheque Transport System.

Ans: (B) Cheque Truncation System.

36. Which of the following sectors does not come under the preview of IDBI for term lending?

(A) Defence equipments.

(B) Informatics.

(C) Health care.

(D) Storage and distribution of energy.

Ans: (A) Defence equipments.

37. All those financial resources and facilities which are available to the monetary authorities of countries for solving their International disbursements are called as:

(A) Global funds.

(B) International funds.

(C) International liquidity.

(D) International capital.

Ans: (C) International liquidity.

38. Special Drawing Rights issued by IMF are components of:

(A) Foreign investment flows.

(B) International liquidity.

(C) International institutional investments.

(D) International capital.

Ans: (B) International liquidity.

39. Which of the following is not true with reference to WTO?

(A) It is an organisation.

(B) It is permanent in nature.

(C) It has dispute settlement mechanism.

(D) It deals with only trade in goods.

Ans: (D) It deals with only trade in goods.

40. The Asian Development Bank (ADB) is:

(A) Multilateral Trade Organisation.

(B) Global Investment Organisation.

(C) Regional Finance Institution.

(D) Export Finance Bank.

Ans: (C) Regional Finance Institution.

41. Accounting Standard 28 is related with ________.

(A) Cash flow statement.

(B) Valuation of inventories.

(C) Impairment of assets.

(D) Earnings per share.

Ans: (C) Impairment of assets.

42. A department in which manager has control over revenues, expenses and investment in assets is called as ________.

(A) Profit centre.

(B) Cost centre.

(C) Revenue centre.

(D) Investment centre.

Ans: (D) Investment centre.

43. On listing of the Stock Exchange, securities can be made easily ________.

(A) Transferable.

(B) Affordable.

(C) Refundable.

(D) Profitable.

Ans: (A) Transferable.

44. Open ended mutual funds are traded at their ________.

(A) Net Asset Value.

(B) Gross Asset Value.

(C) Net Realisable Value.

(D) Net Book Value.

Ans: (A) Net Asset Value.

45. Which of the following is not a speculation in the stock exchange?

(A) Bull.

(B) Broker.

(C) Bear.

(D) Stag.

Ans: (B) Broker.

46. Commercial paper represents a financial instrument issued for the purpose of ________.

(A) Project financing.

(B) Leasing of a plant.

(C) Working capital.

(D) Import of capital goods.

Ans: (C) Working capital.

47. A factoring arrangement used in the international trade finance by exporter who exports their goods is called ________.

(A) Forfeiting factoring.

(B) Limited factoring.

(C) Conventional factoring.

(D) Recourse factoring.

Ans: (A) Forfeiting factoring.

48. Modern marketing concept is ________ oriented concept.

(A) Suppliers.

(B) Consumers.

(C) Dealers.

(D) Distribution.

Ans: (B) Consumers.

49. Since the implementation of liberalisation policy in India, there has been a shift from ________ market situation to buyers’ market situation in case of several types of consumer products.

(A) Private.

(B) Public.

(C) Sellers’.

(D) Competitors’.

Ans: (C) Sellers’.

50. Patronage motive is a motive which induces a person to buy ________.

(A) From a particular shop.

(B) On the basis of product features.

(C) On the basis of product pricing.

(D) On the basis of product packaging.

Ans: (A) From a particular shop.

51. Discouraging the demand for a product or service is referred as ________.

(A) E-marketing.

(B) De-marketing.

(C) Remarketing.

(D) Micro-marketing.

Ans: (B) De-marketing.

52. Green washing refers to outwardly adopting green acts with an underlying purpose of ________.

(A) Satisfying the consumers.

(B) Exploiting the employees.

(C) Increasing the profit.

(D) Decreasing the profit.

Ans: (C) Increasing the profit.

53. While selling a motor car, the role of ________ in a family is the most important role for marketers.

(A) Initiator.

(B) Influencer.

(C) Decider.

(D) User.

Ans: (C) Decider.

54. In case of marketing research, which of the following is not a source of secondary data?

(A) Books and Periodicals.

(B) Government Reports.

(C) Internet Websites.

(D) Telephonic Survey.

Ans: (D) Telephonic Survey.

55. Which of the following is not the advantage of recruitment from within?

(A) Stability from continuity of employment ensured.

(B) Creation of sense of security among employees.

(C) Enhancing the general morale of employees.

(D) Varied and broader experience.

Ans: (D) Varied and broader experience.

56. ________ may be defined as the amount for conveniences and necessaries of life that a worker obtains for a given period of his/her work.

(A) Real wage.

(B) Living wage.

(C) Fair wage.

(D) Minimum wage.

Ans: (A) Real wage.

57. Usually Manpower planning in the context of an enterprises human resources does not as such focus on ________.

(A) Acquisition.

(B) Utilisation.

(C) Social skills.

(D) Improvement.

Ans: (C) Social skills.

58. Which one of the following is fast emerging as a very serious problem in the wider field of Human Resource Management?

(A) Inadequacy of right type of manpower.

(B) Employee alienation.

(C) Lack of adequate professional approach.

(D) Role of trade unions.

Ans: (B) Employee alienation.

59. Which one of the following is not a purpose of transfer?

(A) To rectify erroneous placement.

(B) To provide creative opportunity.

(C) To satisfy the employee’s desire.

(D) To move the employee in the interests of his/her health &/or age.

Ans: (C) To satisfy the employee’s desire.

60. When an employee has few ________, he/she has high morale.

(A) Perceptions.

(B) Frustrations.

(C) Dissonances.

(D) Failures.

Ans: (B) Frustrations.

61. Find the odd one out:

Some of the types of formalized programmes of training are:

(A) Job Rotation.

(B) Job Enlargement.

(C) Job Enrichment.

(D) Fulfillment of Esteem Needs.

Ans: (D) Fulfillment of Esteem Needs.

62. IMF performs the role of:

(A) Granting soft loans to less developed countries.

(B) Regulate international trade.

(C) Promote private investments.

(D) Promote exchange stability by establishing multilateral system of payment.

Ans: (D) Promote exchange stability by establishing multilateral system of payment.

63. To qualify for free trade or reduce tariff under NAFTA, the North American content in production value needs to be:

(A) 25%.

(B) 75%.

(C) 50%.

(D) 40%.

Ans: (C) 50%.

64. If the rate of exchange is allowed to be freely determined by demand and supply in foreign exchange market, it is called as:

(A) Fixed Exchange Rate.

(B) Gold Standard.

(C) Flexible Exchange Rate.

(D) Rigid Exchange Rate.

Ans: (C) Flexible Exchange Rate.

65. Because of its low rate of interest and easy terms of repayment, IDA is nicknamed as:

(A) Friend of LDCs.

(B) Soft loan corridor.

(C) Soft loan window.

(D) Soft banker.

Ans: (C) Soft loan window.

66. Which of the following is not a part of IMF member countries quota to the capital base of IMF?

(A) Contribution in widely accepted foreign currencies.

(B) SDRs.

(C) Member countries own currency.

(D) Gold.

Ans: (D) Gold.

67. Which of the following member countries was last to join SAARC?

(A) India.

(B) Afghanistan.

(C) Pakistan.

(D) Nepal.

Ans: (B) Afghanistan.

68. Which of the following statement is true?

(A) WTO is replaced by GATT.

(B) IMF is replaced by WTO.

(C) GATT is replaced by WTO.

(D) WTO is replaced by IMF.

Ans: (C) GATT is replaced by WTO.

69. A status of foreign citizen working in India during the previous year for 180 days is ________.

(A) Resident and ordinary resident.

(B) Resident but not ordinary resident.

(C) Non-Resident.

(D) Foreign Citizen.

Ans: (C) Non-Resident.

70. A motor car having 1800 cc engine capacity, provided by an employer to employee for official purposes only is valued as perquisite at:

(A) Rs. 2,400 p.m.

(B) Rs. 1,800 p.m.

(C) Rs. 600 p.m.

(D) Nil.

Ans: (D) Nil.

71. Deduction U/S 80 TTA of Income Tax Act, 1961, towards interest on Saving Bank Account is limited to ________.

(A) Rs. 30,000.

(B) Rs. 1,000.

(C) Rs. 10,000.

(D) Rs. 3,000.

Ans: (C) Rs. 10,000.

72. Which of the following methods of depreciation is considered under the Income Tax Act 1961 for calculating depreciation allowance U/S 32?

(A) Straight line method.

(B) Written down value method.

(C) Revaluation method.

(D) Insurance method.

Ans: (B) Written down value method.

73. Which of the following is not capital asset under Income Tax Act, 1961?

(A) Agricultural land.

(B) Urban land.

(C) Forest land.

(D) Industrial land.

Ans: (A) Agricultural land.

74. Non-disclosure of income from Benami transactions is an example of ________.

(A) Tax planning.

(B) Tax avoidance.

(C) Tax evasion.

(D) Tax exclusion.

Ans: (C) Tax evasion.

75. Income from Royalty U/S 80 RRB on text-book is eligible for deduction under Income Tax Act, 1961:

(A) Rs. 1,00,000.

(B) Rs. 2,00,000.

(C) Rs. 3,00,000.

(D) Nil.

Ans: No option is correct or the question is wrong.