MAHA SET Commerce Solved Paper January 2018 [Paper II]

MAHA SET Commerce Solved Paper January 2018 [Paper II]

MAHA SET Solved Question Paper Commerce

[Time: 2 hour, 120 Minutes; Maximum Marks: 100]

Note: This paper contains Fifty (50) 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 II] 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. Which of the Government’s policy in respect of public expenditure and revenue has a significant impact on business?

a) Monetary policy.

b) Fiscal policy.

c) Trade policy.

d) Foreign exchange policy.

Ans: b) Fiscal policy.

2. SEZ stands for ________.

a) Special European Zone.

b) Special Export Zone.

c) Special Environmental Zone.

d) Special Economic Zone.

Ans: d) Special Economic Zone.

3. Which one of the following is not a level of strategies applicable to multiunit business?

a) Corporate strategy.

b) SBU level strategy.

c) Functional level strategy.

d) Divisional level strategy.

Ans: d) Divisional level strategy.

4. Which one of the following is not a powerful environmental force the business is confronted with?

a) Consumer movement.

b) Environmentalism.

c) Changing competitive environment.

d) Increasing population.

Ans: d) Increasing population.

5. MSMEs contribute about ________ of India’s GDP.

a) 8%.

b) 19%.

c) 35%.

d) 40%.

Ans: a) 8%.

6. As per which accounting convention ‘contingent liability’ is shown by way of a footnote below the Balance Sheet?

a) Convention of conservatism.

b) Convention of full disclosure.

c) Convention of materiality.

d) Convention of consistency.

Ans: b) Convention of full disclosure.

7. A company paid Rs. 50,000 for a purchase of copyright for five years. The process of writing off this cost over a period of five years is called ________.

a) Depreciation.

b) Amortization.

c) Deferred Revenue Expenditure.

d) Depletion.

Ans: b) Amortization.

8. Long term solvency is indicated by ________.

a) Current Ratio.

b) Debt/Equity Ratio.

c) Net Profit Ratio.

d) Turnover Ratio.

Ans: b) Debt/Equity Ratio.

9. Which of the following is not an assumption of Break-Even Analysis?

a) Total fixed cost does not change.

b) Total variable cost does not change.

c) General price level does not change.

d) Product mix does not change.

Ans: b) Total variable cost does not change.

10. The difference between standard cost of standard hours and standard cost of actual hours is called as ________.

a) Labour rate variance.

b) Labour cost variance.

c) Labour efficiency variance.

d) Labour mix variance.

Ans: c) Labour efficiency variance.

11. In normal conditions, the demand curve for a commodity:

a) slopes upwards from left to right.

b) slopes downwards from left to right.

c) is horizontal, parallel to X-axis.

d) is vertical, parallel to Y-axis.

Ans: b) slopes downwards from left to right.

12. If the demand for a product responds more than proportionate to the change in its price, it is a:

a) Perfectly inelastic demand.

b) Perfectly elastic demand.

c) Unitary elastic demand.

d) Highly elastic demand.

Ans: d) Highly elastic demand.

13. Which of the following is not a feature of monopolistic competition?

a) Homogenous product.

b) Large number of sellers.

c) Selling costs.

d) Product differentiation.

Ans: a) Homogenous product. b) Large number of sellers.

14. The law of variable proportions of production is applicable in:

a) Long period.

b) Market period.

c) Short period.

d) Very long period.

Ans: c) Short period.

15. With increasing level of output the Average Variable Cost (AVC) of a firm:

a) Initially falls, then continues to rise.

b) Remain unchanged.

c) Goes on continuously falling.

d) Goes on continuously rising.

Ans: a) Initially falls, then continues to rise.

16. Why is random sampling preferred?

a) It is easy to draw.

b) The results will be statistically valid.

c) It is a popular method.

d) It is free from errors.

Ans: b) The results will be statistically valid.

17. Which of the following is not an ‘absolute measure of dispersion’?

a) Range.

b) Standard deviation.

c) Mean deviation.

d) Coefficient of variation.

Ans: d) Coefficient of variation.

18. The empirical formula used to know mode is ________.

a) Mean – 2 Median.

b) 2 Mean – 3 Median.

c) 3 Median – 2 Mean.

d) 3 Median + 2 Mean.

Ans: c) 3 Median – 2 Mean.

19. Which of the following is a parameter?

a) Sample mean.

b) Population mean.

c) Size of sample.

d) Size of population.

Ans: b) Population mean.

20. Suppose an unbiased coin is tossed.

Event A: Getting head.

Event B: Getting tail.

Which of the following statements is true?

a) The events A and B are independent.

b) The events A and B are mutually exclusive.

c) The events A and B are independent and mutually exclusive.

d) The events A and B are neither independent nor mutually exclusive.

Ans: b) The events A and B are mutually exclusive.

21. Tactic is a component of ________.

a) Planning.

b) Organising.

c) Directing.

d) Coordinating.

Ans: a) Planning.

22. The concept of committee comes within the scope of ________.

a) Directing.

b) Organising.

c) Controlling.

d) Planning.

Ans: b) Organising.

23. Which one of the following is not Fayol’s principle of management?

a) Unity of Command.

b) Unity of Direction.

c) Authority and Responsibility.

d) Management by Exception.

Ans: d) Management by Exception.

24. Find the odd one out:

The components of planning are:

a) Objective.

b) Procedure.

c) Decentralisation of authority.

d) Budget.

Ans: c) Decentralisation of authority.

25. Motivation is a part of ________.

a) Communication.

b) Direction.

c) Organization.

d) Plan.

Ans: b) Direction.

26. Which of the following statements is true?

a) Marketing and selling are interchangeable terms.

b) Marketing and selling are not inter-changeable terms.

c) Selling is a broader term which includes marketing.

d) Advertising includes selling and Marketing.

Ans: b) Marketing and selling are not inter-changeable terms.

27. Product-oriented concept believes that ________ is the key to success.

a) Offer of better and modified products.

b) Fulfilling expectations of customers.

c) Focusing on drawbacks of competing products.

d) Manufacturing products on large scale.

Ans: a) Offer of better and modified products.

28. Product Life Cycle (PLC) includes mainly four stages such as Introduction, Growth, Maturity and ________.

a) Prosperity.

b) Decline.

c) Depression.

d) Inflation.

Ans: b) Decline.

29. In the buying decision process, ________ is the first step.

a) Information search.

b) Purchase decision.

c) Evaluation of alternatives.

d) Need recognition.

Ans: d) Need recognition.

30. Relationship marketing refers to maintaining relations with ________ to achieve the marketing purpose.

a) Employees.

b) Dealers.

c) Customers.

d) Suppliers.

Ans: c) Customers.

31. The initial cash outlay of a project is Rs. 2,00,000 and it can generate cash inflow of Rs. 80,000, Rs. 60,000, Rs. 1,00,000 and Rs. 40,000 in the year 2013, 2014, 2015 and 2016 respectively. Assume 10% rate of discount. Calculate the net present value of cash inflow. Time value of money of Rs. 1 @ 10% discount factor:

Year	DF Value
1 2 3 4	.909 .826 .751 .683

a) 1.1240.

b) 1.1235.

c) 1.335.

d) 1.634.

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

32. Which of the following items is not considered while determining the working capital?

a) Inventory.

b) Trade Receivables.

c) Cash at bank.

d) Software.

Ans: d) Software.

33. Which of the following is Dividend Policy Model?

a) Gordon’s model.

b) Schumpeter model.

c) Ricardian model.

d) Miles-Ezzell’s model.

Ans: a) Gordon’s model.

34. The concept of cost of capital can also be explained in terms of ________.

a) Direct cost.

b) Fixed cost.

c) Total cost.

d) Opportunity cost.

Ans: d) Opportunity cost.

35. Which is not the example of current liabilities?

a) Advance from customers.

b) Contingent liabilities.

c) Bank overdraft.

d) Provident fund dues.

Ans: b) Contingent liabilities.

36. Which one of the following is not a labour legislation?

a) Factories Act.

b) Competition Act.

c) Payment of Wages Act.

d) Industrial Disputes Act.

Ans: b) Competition Act.

37. Theory ‘Y’ was developed by ________.

a) Fiedler.

b) Vroom.

c) McGregor.

d) Herzberg.

Ans: c) McGregor.

38. Induction is a function of ________ in Human Resource Management.

a) Performance Appraisal.

b) Selection.

c) Placement.

d) Recruitment.

Ans: b) Selection.

39. Which of the following does not directly affect wage and salary structures?

a) Ability to pay.

b) Labour supply and demand.

c) Union demands.

d) Regional backwardness.

Ans: d) Regional backwardness.

40. Employee welfare does not exactly depend on:

a) Conditions of Work Environment.

b) Employees’ Health Services.

c) Employees’ Education.

d) Organisational Culture.

Ans: d) Organisational Culture.

41. The lending rates of commercial banks are usually:

a) Not affected by Bank rate.

b) Not related to Bank rate.

c) Lower than Bank rate.

d) Higher than Bank rate.

Ans: d) Higher than Bank rate.

42. Banks which operate through single office and generally confined to limited area of town or city are called:

a) Central Banks.

b) Urban Banks.

c) Unit Banks.

d) Metro Banks.

Ans: c) Unit Banks.

43. When money is lent or borrowed for one day or on overnight basis it is known as:

a) Term Money.

b) Call Money.

c) Notice Money.

d) Near Money.

Ans: b) Call Money.

44. Who was the first Indian Governor of RBI?

a) C. D. Deshmukh.

b) Bengal Rama Rau.

c) R. K. Shanmukham Chetty.

d) K. G. Ambegaonkar.

Ans: a) C. D. Deshmukh.

45. Along with Central and State Governments the paid up capital of RRB is shared by:

a) RBI.

b) Sponsoring Bank.

c) NABARD.

d) SBI.

Ans: b) Sponsoring Bank.

46. GATT which was replaced by WTO was:

a) An organisation.

b) An agreement.

c) A policy.

d) A conference.

Ans: b) An agreement.

47. Which of the following is not the item of current account of balance of payment?

a) Import of services.

b) Interest payments.

c) Export of goods.

d) External borrowings.

Ans: d) External borrowings.

48. India’s share in global merchandise trade in 2015 was:

a) 2.00%.

b) 2.50%.

c) 3.00%.

d) 1.60%.

Ans: d) 1.60%.

49. The Asian Development Bank (ADB) attempts to promote economic co-operation and growth of the countries in:

a) Asia and Far East.

b) South East Asia.

c) South and West Asia.

d) South and Central Asia.

Ans: a) Asia and Far East.

50. The direction of Indian exports has shifted in recent period towards:

a) Asia.

b) North America.

c) Europe.

d) Africa.

Ans: a) Asia.