MAHA SET Commerce Solved Paper September 2021 [Paper II-A]

MAHA SET Solved Question Paper Commerce

[Time: 2 hour, 120 Minutes; Maximum Marks: 200]

Note: This paper contains Two hundered (200) multiple choice questions, each carrying Two (2) marks. Attempt All questions.

In this post you will get MAHA SET Commerce Solved Paper September 2021 [Paper II-A] 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 feeling of confusion, insecurity and anxiety caused by the strangeness of a new environment is termed as:

(A) Cultural lag.

(B) Cultural conformity.

(D) Cultural shock.

Ans: (D) Cultural shock.

2. The theory of Absolute Cost Advantage was given by:

(A) Paul Krugman.

(B) Adam Smith.

(D) David Ricardo.

Ans: (B) Adam Smith.

3. India’s foreign trade policy is known as:

(A) EXIT policy.

(B) FDI policy.

(D) Monetary policy.

Ans: (C) EXIM policy.

4. Firms that operate internationally are able to:

(A) Earn a greater return from their skills and core competencies.

(B) Realize location economies where they can be performed most efficiently.

(D) All the above.

Ans: (D) All the above.

5. Which one of the following is not a component of balance of payments ?

(A) Current account.

(B) Capital account.

(D) Official settlement account.

Ans: (C) Social account.

6. Which one of the following is not a member of North American Free Trade Agreement (NAFTA)?

(A) Canada.

(B) Mexico.

(D) U.S.A.

Ans: (C) Japan.

7. Which one of the following is not a determinant of foreign investment ?

(A) Political stability.

(B) Legal and regulatory framework.

(D) Size of market.

Ans: (C) Quality education.

8. ASEAN Vision 2020 was adopted in:

(A) 1991.

(B) 1997.

(D) 2002.

Ans: (B) 1997.

9. Trade related Intellectual Property Rights doesn’t include _______ .

(A) Copyrights.

(B) Trademarks.

(D) Labour laws.

Ans: (D) Labour laws.

10. _______ is director general of the World Trade Organization.

(A) Geeta Gopinath.

(B) Roberto Azevedo.

(D) Christine Lagarde.

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

11. Inflation Accounting is an expected solution over the limitations of _______ assumption.

(A) Historical cost concept.

(B) Matching concept.

(D) Convention of consistency.

Ans: (A) Historical cost concept.

12. Which of the following is not a part of Budget?

(A) Projected Balance Sheet.

(B) Capital expenditure budget.

(D) Budget manual.

Ans: (D) Budget manual.

13. The amount of sales needed to attain a desired profit is calculated by dividing _______ by the contribution margin ratio.

(A) Fixed cost.

(B) Desired profit.

(D) Variable cost.

Ans: (C) Desired profit plus fixed cost.

14. Standard cost is developed by:

(A) Adjusting price level changes in the prices of material and labour etc.

(B) Interpolating the market price with the expected profit.

(D) Incorporating price level changes in market price.

Ans: (A) Adjusting price level changes in the prices of material and labour etc.

15. A master budget comprises of:

(A) The entire set of budgets prepared.

(B) The budgeted cash flow.

(D) The budgeted cash flow, budgeted profit and loss statement and budgeted balance sheet.

Ans: (D) The budgeted cash flow, budgeted profit and loss statement and budgeted balance sheet.

16. The period of preference shares cannot exceed _______.

(A) 20 years.

(B) 7 years.

(D) 8 years.

Ans: (A) 20 years.

17. Activity Based Costing brings accuracy and reliability in product cost determination by focusing on _______ in the cost incurrence.

(A) Cause and effect relationship.

(B) Cost absorption.

(D) Cost apportionment.

Ans: (A) Cause and effect relationship.

18. The budgeted per unit cost data of a toy manufacturing company is:

Material

Labour

Variable Overheads

Selling Price

Rs. 18

Rs. 09

Rs. 08

Rs.50

Budgeted production and sales is 1,50,000 units. Fixed overhead incurred is Rs. 4,00,000.

The total profit, if price is decreased by 25% and volume of sales increase by 30%, is:

(A) Rs. 87,500.

(B) Rs. 61,900.

(D) Rs. 55,600.

Ans: (A) Rs. 87,500.

19. A cash flow statement does not show:

(A) Increase in working capital.

(B) Purchase of machine.

(D) Whether a new loan is availed.

Ans: (C) Whether credit limit is breached.

20. An auditor should consult the following document for knowing company’s rules relating to its internal working:

(A) Company’s prospectus.

(B) Company’s Memorandum of Association.

(D) Company’s Articles of Association.

Ans: (D) Company’s Articles of Association.

21. What does an inward shift in the production possibility curve indicate?

(A) Economic recession.

(B) Economic growth.

(D) Hyperinflation in economy.

Ans: (A) Economic recession.

22. Business economics is essentially _______.

(A) Applied microeconomics only.

(B) Applied macroeconomics only.

(D) Neither applied microeconomics, nor applied macroeconomics.

Ans: (A) Applied microeconomics only.

23. As we move down along a demand curve with constant slope, the price elasticity of demand:

(A) Remains constant.

(B) Increases.

(D) Multiplies.

Ans: (C) Decreases.

24. If elasticity of demand is one (E_D = 1), then _______.

(A) MR = AR and AR = MR.

(B) MR < 0 and AR = 0.

(D) MR = 0 and AR > 0.

Ans: (D) MR = 0 and AR > 0.

25. Which of the following is not an assumption of the law of diminishing marginal utility?

(A) Rationality.

(B) Cardinal utility.

(D) Constant production function.

Ans: (D) Constant production function.

26. Which of the following is not true in case of the law of variable proportions?

(A) Production technology remains unchanged.

(B) Some inputs are kept fixed during production.

(D) Constant returns to scale in all three stages of production.

Ans: (D) Constant returns to scale in all three stages of production.

27. _______ shows all combinations of inputs that can be used to produce a given level of output.

(A) Expansion path.

(B) Isocost.

(D) Isoquant.

Ans: (D) Isoquant.

28. In the short-run, a competitive firm maximises its profit by choosing an output at which price is _______ .

(A) Equal to marginal cost.

(B) Greater than marginal cost.

(D) Below the average variable cost.

Ans: (A) Equal to marginal cost.

29. The market structure where the monopolist charges different prices for the same commodity is known as _______.

(A) Natural monopoly.

(B) Discriminating monopoly.

(D) Simple monopoly.

Ans: (B) Discriminating monopoly.

30. A: Degrees of price discrimination were introduced by A.C. Pigou.

B: Under first degree price discrimination consumer surplus is zero.

(A) Only ‘A’ is true.

(B) Only ‘B’ is true.

(D) Both ‘A’ and ‘B’ are incorrect.

Ans: (C) Both ‘A’ and ‘B’ are correct.

31. Tax considerations do not enter into the cost of _______ calculation.

(A) Equity.

(B) Debt.

(D) Retained earnings.

Ans: (A) Equity.

32. If the investor invests his money in a particular company and company gets bankrupt, it is said to be _______.

(A) Default risk.

(B) Business risk.

(D) Interest rate risk.

Ans: (A) Default risk.

33. Degree of the financial leverage is a measure of relationship between:

(A) EPS and EBIT.

(B) EBIT and quantity produced.

(D) EPS and Interest payment.

Ans: (A) EPS and EBIT.

34. In accept-reject decisions _______

(A) NPV and IRR methods produce identical results.

(B) NPV and IRR methods produce different results.

(D) NPV and IRR never used for evaluation of project.

Ans: (A) NPV and IRR methods produce identical results.

35. The costliest of long term source of finance is:

(A) Preference share capital.

(B) Equity share capital.

(D) Debentures.

Ans: (B) Equity share capital.

36. If the price is Rs. 300 and the dividend is Rs. 30, what should be the price at which one should sell the stock at the end of one year in order to obtain a rate of return of 40%?

(A) Rs. 390.

(B) Rs. 420.

(D) Rs. 370.

Ans: (A) Rs. 390.

37. Maximising the wealth of the shareholders is reflected in:

(A) Maximising market price of equity shares.

(B) Maximising cash balance.

(D) Maximising issued capital.

Ans: (A) Maximising market price of equity shares.

38. Speculators will buy and currencies through a forward market deal if:

(A) Future spot rate of that currency is expected to be lower than the forward rate.

(B) Future spot rate of that currency is expected to be higher than the forward rate.

(D) Future spot rate of the currency is not expected to be lower than the forward rate.

Ans: (B) Future spot rate of that currency is expected to be higher than the forward rate.

39. Free land and building given by the host-country Government is _______.

(A) Not included in the initial cash flow.

(B) Included in the initial cash flow.

(D) Not added in the income Statement.

Ans: (A) Not included in the initial cash flow.

40. Euro notes have a maturity of _______.

(A) One year or less.

(B) More than one year but less than 3 years.

(D) More than 5 years.

Ans: (A) One year or less. (B) More than one year but less than 3 years. (C) More than 3 years but less than 5 years. (D) More than 5 years.

42. State which of the following statements is true?

(A) Arithmetic mean is proper representative of the group if the standard deviation is smaller.

(B) Arithmetic mean is proper representative of the group if the standard deviation is larger.

(D) Smaller the standard deviation, smaller will be the arithmetic mean.

Ans: (A) Arithmetic mean is proper representative of the group if the standard deviation is smaller.

45. The mean and variance of a binomial distribution are 8 and 4 respectively, then the parameters are _______, _______ .

(A) n = 8 P = 0.5.

(B) n = 4 P = 0.4.

(D) n = 16 P = 0.4.

Ans: (C) n = 16 P = 0.5.

46. The area under the standard normal curve between the lines at the points –1.96 and +1.96 is _______ .

(A) 50%.

(B) 90%.

(D) 5%.

Ans: (C) 95%.

47. In order to test equality of population means of two groups when their standard deviations are unknown, we use_______ test.

(A) F.

(B) t.

(D) Chi-square.

Ans: (B) t.

48. Analysis of variance technique involves _______ .

(A) Computation of variances of different groups.

(B) Computation of means and variances of different groups.

(D) Preparation of ANOVA table.

Ans: (C) Splitting of the variance as variation between the samples and also within sample.

49. A research which aims at finding a solution for an immediate problem facing a society or a business organisation is called as _______ research.

(A) Fundamental.

(B) Applied.

(D) Conceptual.

Ans: (B) Applied.

50. Arrange the following steps in report writing in appropriate order :

(1) Preparation of rough draft

(2) Logical analysis of the subject matter

(3) Preparation of the final outline

(4) Preparation of the final bibliography

(5) Rewriting and polishing of the rough draft

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

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

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

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

51. Conflict has always been considered undesirable so that it should be avoided when possible or resolved soon it occurs. However, _______ believes that conflict can be helpful or constructive if handled properly.

(A) Scientific management school.

(B) Administrative management school.

(D) Modern management view.

Ans: (D) Modern management view.

52. _______ Boston Consulting Group (BCG) focus on the following.

(A) Sales, growth of market and whether it absorbs or produces cash in its operations.

(B) Technology Development, Sales Development and Product Development.

(D) New business development, New market development and New product development.

Ans: (A) Sales, growth of market and whether it absorbs or produces cash in its operations.

53. _______ pointed out that effective direction depends upon the harmony of objectives.

(A) Peter Drucker.

(B) Fredric Taylor.

(D) Philip Kotler.

Ans: (B) Fredric Taylor.

54. Increase in supply or in productivity of factors such as financial, labour and material is called:

(A) Factor innovation.

(B) Resource innovation.

(D) Basic innovation.

Ans: (A) Factor innovation.

55. Markov analysis technique is used in Human Resource planning for _______ forecasts.

(A) Long-term.

(B) Medium-term.

(D) Uncertain period.

Ans: (A) Long-term.

56. Business ethics and effective corporate Governance result in _______.

(A) Short-term profit maximization.

(B) Reduced taxes.

(D) Monopoly.

Ans: (C) Wealth maximisation.

57. _______ is not the form/scheme of workers participation in management.

(A) Works committees.

(B) Joint management councils.

(D) Board of Directors.

Ans: (D) Board of Directors.

58. _______ is a process of guiding and counseling the employee to familiarize him with job situations.

(A) Rank and File Job Training.

(B) Supervisory Training.

(D) Craft Training.

Ans: (C) Induction Training.

59. In _______ type of leadership the leader’s job is primarily of a moderator, even though he makes the final decision and he alone is responsible for the results.

(A) Autocratic Dictatorial leadership.

(B) Participative or Democratic leadership.

(D) (A) and (C).

Ans: (B) Participative or Democratic leadership.

60. _______ is the process of determining the task involved in the job and personal qualities of the individuals required to perform it.

(A) Job analysis.

(B) Job description.

(D) Job enrichment.

Ans: (A) Job analysis.

61. The major player in the Indian money market is _______ .

(A) Co-operative banks.

(B) Indigenous banks.

(D) Reserve Bank of India.

Ans: (D) Reserve Bank of India.

62. Which of the following is not the principal function of the RBI?

(A) Bankers Bank.

(B) Currency issue.

(D) Bankers to the local self-government.

Ans: (D) Bankers to the local self-government.

63. The safest form of crossing is _______ .

(A) General crossing.

(B) Special crossing.

(D) A/c payee crossing.

Ans: (D) A/c payee crossing.

64. The bank through which the issuing bank arranges to advice the letter of credit to the beneficiary is called as _______ .

(A) Bank of issue.

(B) Advising bank.

(D) Authorised bank.

Ans: (B) Advising bank.

65. _______ is financing and maintenance of book debts by another party.

(A) Del-credere contract.

(B) Debt brokerage.

(D) Bill discounting.

Ans: (C) Factoring.

66. All the exchange rates quoted on the screen or in print are for _______ unless otherwise mentioned.

(A) Spot transactions.

(B) Forward transactions.

(D) Tom transactions.

Ans: (A) Spot transactions.

67. Merchant bankers are _______ .

(A) Financial brokers.

(B) Financial intermediaries.

(D) Underwriters.

Ans: (B) Financial intermediaries.

68. The committee which recommended establishment of data warehouse is _______.

(A) Vasudevan Committee.

(B) Rangarajan Committee.

(D) Shere Committee.

Ans: (A) Vasudevan Committee.

69. The Basel Committee on Banking supervisory authorities was established by _______.

(A) The Central bank governors of the group of ten countries.

(B) European countries.

(D) U.S.A.

Ans: (A) The Central bank governors of the group of ten countries.

70. The ratio of shareholders funds to the total assets measures that shifts in the ratio of owned funds to total funds is _______.

(A) Economic equity ratio.

(B) Fund based ratio.

(D) Liquidity ratio.

Ans: (A) Economic equity ratio.

71. Marketing refers to _______.

(A) Social and managerial process of anticipating, identifying and satisfying customer requirements profitably.

(B) Managerial process of measuring customers requirements.

(D) Process of collecting and analysing data related to future requirements of customers.

Ans: (A) Social and managerial process of anticipating, identifying and satisfying customer requirements profitably.

72. Demand going up and down with time upsetting alignment with supply is known as _______.

(A) Excess.

(B) Declining.

(D) Fluctuating.

Ans: (D) Fluctuating.

73. The customer orientation implies _______.

(A) Selling goods/services at moderate price to customer.

(B) Giving priority to profit vis-avis the customer needs.

(D) Ability to think like and act like Customer.

Ans: (D) Ability to think like and act like Customer.

74. Skimming Price Strategy is appropriate when _______.

(A) Product is differentiated and competition is normal.

(B) Customers are sensitive to price.

(D) Product is new and innovative.

Ans: (D) Product is new and innovative.

75. Distribution logistics refers to _______.

(A) All activities that accomplish delivery of the end product to the channels as well as the consumer.

(B) Physical flow of the product from product development to production.

(D) Attempt to create value to product.

Ans: (A) All activities that accomplish delivery of the end product to the channels as well as the consumer.

76. The maturity stage of PLC is characterised by _______.

(A) Growth in absolute sales and sales growth rate starts declining.

(B) The number of sales declined, growth rate turns negative.

(D) Growth in absolute sales and sales growth rate increasing at an increasing rate.

Ans: (B) The number of sales declined, growth rate turns negative.

77. Arrangement for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumer is known as _______.

(A) Marketing mix.

(B) Marketing planning and strategy.

(D) Market positioning.

Ans: (D) Market positioning.

78. _______ is a set of procedures and sources, managers use to obtain everyday information about developments in the marketing environment.

(A) Database system.

(B) Marketing intelligence system.

(D) Marketing research system.

Ans: (B) Marketing intelligence system.

79. Different customer groups pays different prices for the same goods and services, (e.g. Railway concession to students and senior citizens) it is the example of _______.

(A) Customer segmentation price.

(B) Product form pricing.

(D) Time pricing.

Ans: (C) Optional pricing.

80. _______ enables one to have comparison of quality and price.

(A) Standardisation.

(B) Grading.

(D) Branding.

Ans: (B) Grading.

81. In the words of _______, ‘‘Law is the body of principles recognised and applied by the state is the administration of justice’’.

(A) Salmond.

(B) Woodrow Wilson.

(D) Pallock.

Ans: (A) Salmond.

82. The President of India has given his assent to legislations on Central Goods and Service Tax on _______.

(A) 12th April, 2017.

(B) 27th March, 2017.

(D) 30th April, 2017.

Ans: (A) 12th April, 2017.

83. Section 8 of the RTI Act, 2005 deals with the _______.

(A) Exemption from Disclosure of Information.

(B) Disposal of request.

(D) Appeal.

Ans: (A) Exemption from Disclosure of Information.

84. Intellectual Property Right (IPR) protects the use of information and ideas that are of _______.

(A) Ethical value.

(B) Monetary value.

(D) Commercial value.

Ans: (D) Commercial value.

85. What is the validity of Challan in Form GST PMT-06?

(A) 1 day.

(B) 5 days.

(D) Forever.

Ans: (C) 15 days.

86. According to Section 3 of the _______ a minor is a person who has not completed eighteen years of age.

(A) Indian Majority Act, 1875.

(B) Indian Contract Act, 1872.

(D) Indian Juvenile Justice Act, 1986.

Ans: (A) Indian Majority Act, 1875.

87. Section 2 (y) of the _______, explains turnover as, ‘‘It includes value of sale of goods or services’’.

(A) The Competition Act, 2002.

(B) The Factories Act, 1948.

(D) Maharashtra Goods and Services Tax Act, 2017.

Ans: (A) The Competition Act, 2002.

88. If the threat is with regard to the goods or property of the other party, it is not _______.

(A) Duress.

(B) Fraud.

(D) Illegal.

Ans: (A) Duress.

89. The cartel is defined u/s _______ of the Competition Act, 2002.

(A) 2(c).

(B) 2(f).

(D) 2(i).

Ans: (A) 2(c).

90. Which section of the RTI Act, 2005 deals with obligation of Public authorities?

(A) Sec. 6.

(B) Sec. 7.

(D) Sec. 8.

Ans: (C) Sec. 4(1).

91. When income of previous year is not taxable in the immediately following assessment year?

(A) Shipping business of resident.

(B) Shipping business of nonresident.

(D) Non-government organisation of India.

Ans: (B) Shipping business of nonresident.

92. Which of the following income is not taxable under Income Tax Act, 1961?

(A) Income of Maharashtra State Road Transport Corporation (MSRTC).

(B) Income of Maharashtra Government Milk Scheme.

(D) Income of Maharashtra State Financial Corporation (MSFC).

Ans: (A) Income of Maharashtra State Road Transport Corporation (MSRTC). (B) Income of Maharashtra Government Milk Scheme. (C) Income of Maharashtra Tourism Development Corporation (MTDC). (D) Income of Maharashtra State Financial Corporation (MSFC).

93. Gift of Rs. 2,00,000 received by employee through account payee cheque from employer is taxable under the head:

(A) Income from salary.

(B) Income from other sources.

(D) Income exempt upto Rs. 50,000 and balance taxable under the head ‘Income from other sources’

Ans: (A) Income from salary.

94. An industrial undertaking has acquired and installed a machinery costing Rs. 60,00,000 on 3rd October, 2018. The assessee has fulfilled the conditions specified in Section 32 (iia) of the Income Tax Act, 1961.

Then additional depreciation for A. Y. 2019-20 will be:

(A) Rs. 6,00,000.

(B) Rs. 9,00,000.

(D) Rs. 12,00,000.

Ans: (D) Rs. 12,00,000.

95. When net annual value of a house property can be negative –

(A) Deduction under Section 24 are more than income.

(B) When municipal taxes paid by the owner are more than gross annual value.

(D) When the house property was vacant throughout the year.

Ans: (B) When municipal taxes paid by the owner are more than gross annual value.

96. Mr. Rajendra purchased a plot of land in Pune for Rs. 70,00,000 on 5^th July 2012. He constructed a residential house on this plot, which was completed on 8th October, 2015. The cost of construction was Rs. 50,00,000. The entire house structure was sold for Rs. 2,10,00,000 on 6th August, 2017, which includes Rs. 1,50,00,000 for land and balance for the superstructure. What can be the capital gain on sale of house for the A. Y. 2018-19 ? C.I.I. for previous years 2012-13, 2015-16 and 2017-18 is 200, 254, 278 respectively.

(A) Rs. 64,80,000.

(B) Rs. 90,00,000.

(D) Rs. 80,00,000.

Ans: No option is correct or question is wrong.

97. _______ is a section related to clubbing of income under Income Tax Act, 1961.

(A) Section 60-63.

(B) Section 60-69.

(D) Section 60-61.

Ans: (C) Section 60-64.

98. Income from Farmhouse is:

(A) Agricultural income.

(B) Income from house property.

(D) Income from other sources.

Ans: (A) Agricultural income.

99. Apex Ltd, a manufacturing company has installed a machinery costing Rs. 100,00,000 in a factory for research and development and charged as an expense under section 35 of Income Tax Act, 1961 but used that machinery for manufacturing of regular products. Then it will be considered as:

(A) Tax management.

(B) Tax planning.

(D) Tax evasion.

Ans: (C) Tax avoidance.

100. A non-corporate assessee is required to pay advance tax at _______ of estimated taxable income, on or before 15th December.

(A) 45%.

(B) 30%.

(D) 75%.

Ans: (D) 75%.

MAHA SET Commerce Solved Paper September 2021 [Paper II-A]