MAHA SET Commerce Solved Paper January 2018 [Paper III]

MAHA SET Commerce Solved Paper January 2018 [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 January 2018[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. A medium enterprise is an enterprise where investment limit in plant and machinery is ________.

a) Rs. 7.5 crores.

b) Rs. 5 crores.

c) Rs. 10 crores.

d) Rs. 20 crores.

Ans: c) Rs. 10 crores.

2. The scope of MRTP Act, since 1992 has been confined only to the regulation of:

a) Consumer monopolies.

b) Restrictive and unfair trade practices.

c) Restrictive Trade Practices.

d) Monopolistic Trade Practices.

Ans: c) Restrictive Trade Practices.

3. Which one of the following cannot be considered as one of the salient features of major changes announced in industrial policy on 24 July, 1991?

a) Delicensing with certain exception.

b) Liberalisation of Foreign Investment and technological participation.

c) Effective promotion of small industries widely dispersed in rural areas and small towns.

d) Scraping of MRTP regulation pertaining to concentration of economic power.

Ans: c) Effective promotion of small industries widely dispersed in rural areas and small towns.

4. Which one of the following is not a technique of environmental analysis?

a) Verbal or written information.

b) Spying.

c) Networking.

d) Forecasting and formal Studies.

Ans: c) Networking.

5. Which of the following factors should not be considered in a make or buy decision?

a) Potential use of manufacturing capacity.

b) Variable cost of production.

c) Potential rental income from space occupied by production area.

d) Uncharged fixed cost.

Ans: c) Potential rental income from space occupied by production area.

6. A budget that gives a summary of all the functional budgets and a projected profit and loss account is known as ________.

a) Master Budget.

b) Capital Budget.

c) Flexible Budget.

d) Fixed Budget.

Ans: a) Master Budget.

7. Which of the following is not a responsibility centre?

a) Expense centre.

b) Profit centre.

c) Investment centre.

d) Control centre.

Ans: d) Control centre.

8. Which of the following methods of depreciation is recognised for income tax purposes?

a) Straight line method.

b) Annuity method.

c) Written down value method.

d) Revaluation method.

Ans: c) Written down value method.

9. If the cross elasticity of demand for two goods is negative, then they are:

a) Complements.

b) Substitutes.

c) Luxuries.

d) Consumer goods.

Ans: a) Complements.

10. Other factors remaining unchanged, if the income of the buyer increases, his budget/price line will:

a) Shift backwards to the left.

b) Remains unchanged.

c) Shifts upwards to the right.

d) Becomes vertical.

Ans: c) Shifts upwards to the right.

12. When the marginal cost (MC) of a firm is rising, it will:

a) pull the average cost (AC) up.

b) push the AC down.

c) split the AC.

d) leave the AC unaffected.

Ans: a) pull the average cost (AC) up.

13. To test whether the two population means are equal we use ________ test.

a) t.

b) F.

c) Chi square.

d) Kolmogorov-Smirnov.

Ans: a) t.

14. Sampling distribution of a statistic will be approximately normal when the sample size is ________.

a) Small.

b) Large.

c) Sufficiently large.

d) Optimum.

Ans: c) Sufficiently large.

15. In a pie diagram, 5 percent is equal to ________ degree angle.

a) 3.0.

b) 4.5.

c) 9.0.

d) 18.0.

Ans: d) 18.0.

17. ________ is not a component of planning.

a) Policy.

b) Programme.

c) Delegation of authority.

d) Tactic.

Ans: c) Delegation of authority.

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

a) Decentralisation of Authority.

b) Setting standard.

c) Determining span of control.

d) Developing feedback control.

Ans: b) Setting standard.

19. ________ is not a part of the organisational structure.

a) Committee.

b) Matrix organisation.

c) Informal organisation.

d) Centralisation of authority.

Ans: d) Centralisation of authority.

20. ________ is a part of the process of communication.

a) Strategy formulation.

b) Policy formulation.

c) Decoding.

d) Situation identification.

Ans: c) Decoding.

21. Selling concept focuses on the needs of sellers, while marketing concept focuses on the needs of ________

a) Dealers.

b) Suppliers.

c) Buyers.

d) Distributors.

Ans: c) Buyers.

22. A mass communication programme about a product or an organisation, for which no payment is made, is called as ________.

a) Publicity.

b) Advertising.

c) Salesmanship.

d) Sales Promotional Schemes.

Ans: a) Publicity.

23. Niche marketing refers to marketing of products and services to a ________ group of buyers.

a) Large.

b) Small.

c) Substantial.

d) Diversified.

Ans: b) Small.

24. Initially charging the high price and then gradually reducing the same after some time period, is called as ________.

a) Skimming Pricing Policy.

b) Penetration Pricing Policy.

c) Uniform Pricing Policy.

d) Unique Pricing Policy.

Ans: a) Skimming Pricing Policy.

25. From the following details of project A, calculate payback period.

Cost of project Rs. 80,000, estimated scrap value Rs. 10,000, estimated cash inflow (savings):

	Rs.
1 year 2 year 3 year 4 year 5 year	16,000 24,000 24,000 24,000 12,000

a) 3 years, 8 months.

b) 3 years, 3 months.

c) 5 years, 8 months.

d) 5 years, 3 months.

Ans: a) 3 years, 8 months.

26. From the following information, calculate operating leverage:

	Rs.
Sales Contribution Fixed cost Earnings before interest and tax (EBIT)	2,00,000 1,00,000 50,000 50,000

 a) 2.

b) 1.

c) 0.50.

d) 0.25.

Ans: a) 2.

27. Which one of the following is not used to estimate cost of equity capital?

a) External yield criterion.

b) Dividend plus growth model.

c) Equity capitalization approach.

d) Capital Asset Pricing Model (CAPM).

Ans: c) Equity capitalization approach.

28. The debt policy of a firm is significantly influenced by the ________

a) Cost concept.

b) Cost consideration.

c) Cost capital.

d) Cost control.

Ans: b) Cost consideration.

29. Working conditions are a part of:

a) Job environment.

b) Job enlargement.

c) Job evaluation.

d) Job enrichment.

Ans: a) Job environment.

30. Provisions relating to health and safety in industrial organisations are there in the ________.

a) Industrial Disputes Act.

b) Workmen’s Compensation Act.

c) Factories Act.

d) ESI Act.

Ans: c) Factories Act.

31. Sound Human Resource Management requires understanding of n/PWR, n/AFF and n/ACH developed by:

a) Skinner.

b) McClelland.

c) Adams.

d) Vroom.

Ans: b) McClelland.

32. Which of the following is usually not an approach to on-the-job training?

a) Coaching.

b) Job rotation.

c) Planned progression.

d) Sensitivity training.

Ans: d) Sensitivity training.

33. By mobilizing savings and lending them as credit, banks act as:

a) Capital Market.

b) Financial Intermediaries.

c) Forex Dealer.

d) Lender of last resort.

Ans: b) Financial Intermediaries.

34. Which among the following is incorrect?

a) RBI is the Bank of Issue.

b) RBI acts as Banker to the Government.

c) RBI is Banker’s Bank.

d) RBI is lender to the large industrial corporations.

Ans: d) RBI is lender to the large industrial corporations.

35. Basel II accord is mostly concerned with:

a) Central Vigilance Commission.

b) Non-performing Assets.

c) Capital Adequacy Ratio.

d) Foreign Direct Investment.

Ans: c) Capital Adequacy Ratio.

36. Banking Ombudsman means:

a) A person appointed to recover dues.

b) A person to whom customer can approach for redressal of his grievances.

c) A person appointed to settle disputes between employees and management.

d) A person appointed by RBI to oversee the functioning of foreign banks.

Ans: b) A person to whom customer can approach for redressal of his grievances.

37. Which of the following has the highest percentage share in Indian imports?

a) Petrol.

b) Gas.

c) Diesel.

d) POL (Petrol, oil and lubricants).

Ans: d) POL (Petrol, oil and lubricants).

38. Special Drawing Rights are:

a) International Reserve Assets.

b) Indian Regulatory Authority.

c) International Regional Assets.

d) Component of FDI.

Ans: a) International Reserve Assets.

39. World Bank can grant loans to its member country upto:

a) 10% of its share in paid up capital of World Bank.

b) 20% of its share in paid up capital of World Bank.

c) 30% of its share in paid up capital of World Bank.

d) 40% of its share in paid up capital of World Bank.

Ans: b) 20% of its share in paid up capital of World Bank.

40. Balance of trade takes into account:

a) Only export and import of services.

b) Export and import of goods and services.

c) Export and import of capital.

d) Export and import of only merchandise goods.

Ans: d) Export and import of only merchandise goods.

41. The marketing manager of a product line is the example of ________.

a) Cost Centre.

b) Revenue Centre.

c) Investment Centre.

d) Profit Centre.

Ans: b) Revenue Centre.

42. Accounting Standard-16 is related with ________.

a) Segment reporting.

b) Amalgamation.

c) Borrowing cost.

d) Depreciation accounting.

Ans: c) Borrowing cost.

43. Which of the following risk area is not considered before venture capital financing?

a) Product risk.

b) Market risk.

c) Dividend risk.

d) Technological risk.

Ans: c) Dividend risk.

44. Cartel is a type of ________.

a) Vertical combinations.

b) Allied combinations.

c) Horizontal combinations.

d) Mixed combinations.

Ans: c) Horizontal combinations.

45. When a right to purchase securities is acquired, it is known as ________.

a) Call option.

b) Put option.

c) Double option.

d) Option.

Ans: a) Call option.

46. Foreign equity includes ________.

a) ADR’s (American Depository Receipts).

b) Bonds.

c) Commercial Papers.

d) Gold bonds.

Ans: a) ADR’s (American Depository Receipts).

47. The first mutual fund scheme in India was introduced by ________.

a) Reserve Bank of India (RBI).

b) State Bank of India (SBI).

c) Unit Trust of India (UTI).

d) Government of India.

Ans: c) Unit Trust of India (UTI).

48. Market segmentation is a process of taking the total heterogeneous market for a product and dividing it into several segments each of which tends to be ________ in all significance.

a) Different.

b) Special.

c) Homogeneous.

d) Indigeneous.

Ans: c) Homogeneous.

49. In sellers’ market situation, ________ dominate the decisions and activities in the market.

a) Manufacturers and dealers.

b) Consumers.

c) Competitors.

d) Banks and Insurance Companies.

Ans: a) Manufacturers and dealers.

50. Which of the following is not included in the micro-environmental factors?

a) Customers.

b) Dealers.

c) Competitors.

d) Other departments in the company.

Ans: d) Other departments in the company.

51. Out of the following which is not included as a personal factor influencing consumers’ buying behaviour?

a) Occupation.

b) Lifestyle.

c) Age.

d) Social group.

Ans: d) Social group.

52. Green products are those products which ________.

a) are packed only in green coloured paper.

b) include raw materials in green colour only.

c) try to protect the environment.

d) are the products harmful to environment.

Ans: c) try to protect the environment.

53. Day to day buying of fruits and vegetables by the consumers indicates an example of ________ buying behaviour.

a) Variety seeking.

b) Complex decision-making.

c) Special.

d) Brand Loyal.

Ans: a) Variety seeking.

54. For the distribution of toilet soaps ________ distribution strategy is preferred.

a) Intensive.

b) Selective.

c) Exclusive.

d) Inclusive.

Ans: a) Intensive.

55. Which of the following is not the method of workers’ participation in management?

a) Co-partnership.

b) Profit-sharing.

c) Member on Board of Directors.

d) Bonus Scheme.

Ans: d) Bonus Scheme.

56. Under whose plan workers who produce alone standards receive higher wages than those who produce below standards?

a) Fayol.

b) Taylor.

c) Follet.

d) Halsey-Rowan.

Ans: b) Taylor.

57. ________ is constructed/designed to discover interests, existing skills and potential for acquiring skills.

a) Intelligence Test.

b) Proficiency Aptitude Test.

c) Vocational Test.

d) Personality Test.

Ans: b) Proficiency Aptitude Test.

58. Which one of the following is not non-financial incentive?

a) Giving additional responsibility.

b) Creating a sense of achievement.

c) Granting recognition.

d) Declaring bonus.

Ans: d) Declaring bonus.

59. The blocking of goal-attainment is referred to as:

a) Perception.

b) Goal congruence.

c) Frustration.

d) Dissonance.

Ans: c) Frustration.

60. Instead of searching for the perfect or ideal decision, managers frequently settle for one that will adequately serve their purpose. In Simon’s terms, they:

a) Optimise.

b) Maximise.

c) Satisfice.

d) Actualise.

Ans: c) Satisfice.

61. The following are the basic human needs mentioned by Maslow:

1) Physiological needs.

2) Esteem needs.

3) Security needs.

4) Self-actualisation needs.

5) Affiliation needs.

The ascending order of these as done by Maslow would bed:

a) (1), (2), (3), (5), (4).

b) (1) (3), (5), (2), (4).

c) (1), (5), (2), (4), (3).

d) (1), (3), (4), (5), (2).

Ans: b) (1) (3), (5), (2), (4).

62. In Indian context TRIPS will have its greatest impact on:

a) Automobile.

b) Banking and insurance.

c) Pharmaceuticals.

d) Aviation.

Ans: c) Pharmaceuticals.

63. Which of the following is not agreed upon by members of WTO?

a) Observance of minimum labour standard.

b) Protection of Intellectual Property Rights.

c) Dispute Settlement Mechanism.

d) Agricultural Subsidies.

Ans: a) Observance of minimum labour standard.

64. Which of the following was established to help and finance world’s less developed countries?

a) IMF.

b) IBRD.

c) IDA.

d) RBI.

Ans: c) IDA.

65. Which of the following is not a major trading partner of India?

a) UAE.

b) China.

c) Germany.

d) Finland.

Ans: d) Finland.

66. Global depository receipts are issued by:

a) America.

b) Depository Country.

c) Depository Bank.

d) Investors.

Ans: c) Depository Bank.

67. Removal of restrictions on payments relating to import and exports of goods, services and factor income is called as:

a) Trade Liberalism.

b) Free Trade.

c) Current Account Convertibility.

d) Trade Promotion.

Ans: c) Current Account Convertibility.

68. SAFTA is related to:

a) UN.

b) EU.

c) SAARC.

d) ASEAN.

Ans: c) SAARC.

69. Under Income Tax Act 1961 a status of foreign University having campus in India is ________.

a) Company.

b) Association of Person.

c) Artificial Judicial Person.

d) Trust.

Ans: c) Artificial Judicial Person.

70. Which of the following allowances is fully exempted under the Income Tax Act, 1961?

a) Travelling allowance.

b) Conveyance allowance.

c) Hostel allowance.

d) Uniform allowance.

Ans: d) Uniform allowance.

71. Maximum deduction u/s 24 of Income Tax Act 1961 in respect of interest on borrowed capital for repairs of the house property is restricted to ________.

a) Rs. 30,000 p.a.

b) Rs. 1,50,000 p.a.

c) Rs. 2,00,000 p.a.

d) Rs. 50,000 p.a.

Ans: a) Rs. 30,000 p.a.

72. Long-term capital gain taxable in the hands of an individual assessee at the rate of ________.

a) 20%.

b) 15%.

c) 25%.

d) Relevant slab rates.

Ans: a) 20%.

73. Due date of filing return of income by a non-corporate assessee having tax audit is ________.

a) 30th June of the relevant Assessment Year.

b) 31st July of the relevant Assessment Year.

c) 30th Sept. of the relevant Assessment Year.

d) 31st Oct. of the relevant Assessment Year.

Ans: c) 30th Sept. of the relevant Assessment Year.

74. Suppression of Income is an example of ________.

a) Tax Planning.

b) Tax Avoidance.

c) Tax Exemption.

d) Tax Deduction.

Ans: b) Tax Avoidance.

75. Rate of tax deducted at source for interest on fixed deposits exceeding Rs. 10,000 for the assessee not providing Permanent Account Number is ________.

a) 10%.

b) 20%.

c) 30%.

d) relevant slab rate of tax.

Ans: b) 20%.