NTA UGC NET/JRF Exam, December 2022 (Commerce) Shift-I

Total Questions: 100

21. Which one of the following is referent source of power?

Correct Answer: (b) Manager’s desire to identify with or imitate the subordinate
Solution:

Manager’s desire to identify or imitate the subordinate is referent source of power.

22. Which one of the following is not an advantage of the line organization?

Correct Answer: (c) It is suitable for big organizations
Solution:

Following are the advantages of the line organisation:
(i) It ensures excellent discipline.
(ii) It fixes responsibility for the performance of tasks
(iii) It is not expensive
(iv) Simple to work & it is stable form of organisation

23. A scale that measures a fair sample of the tasks and skills actually needed for the job in question is known as:

Correct Answer: (c) Content validity
Solution:

A scale that measures a fair sample of the tasks and skills actually needed for the job in question is known as content validity.
• Construct validity refers to how well the measure ‘behaves’ in accordance with theoretical hypothesis, and it measure how well the instrument’s results reflect the theoretical construct.
• The degree to which a test (such as a chemical, physical, or scholastic test) accurately measures what it is designed to assess is known as test validity.
• A measure’s criterion validity is an estimate of how well it agrees with a gold standard (i.e., an external criterion of phenomenon being measured. The lack of gold standards in criterion validity assessment for questionnaire-based measure is a key issue.

24. Impairing technique which is known as:

Correct Answer: (a) Built-in-Tension
Solution:

Training technique which teaches the importance of resolving matters is known as Built-in-Tension technique.

25. When Central Bank Conducts a sale of securities, the cash reserve of commercial banks shall:

Correct Answer: (b) Decrease
Solution:

If RBI conducts a sale of securities, it absorbs liquidity in the economy thereby reducing cash reserves in commercial banks.
In other words, when Central Bank conducts a sale of securities, the cash reserves of commercial banks shall decrease.

26. ‘Average clause’ in insurance is applicable for which one of the following cases?

Correct Answer: (d) Under insurance
Solution:

Average clause in insurance is applicable in case of under insurance.

27. ABC Ventures is private equity investor considering investing ₹1000 million in the equity of XYZ Ltd. ABC Ventures requires a return of 30% on investment with planned holding period of 5 years. The likely debt of XYZ Ltd. will be ₹1000 million and cash balance of ₹300 million with a projected EBITDA of ₹1500 million for the year 5. The desired ownership share of ABC Ventures in XYZ Ltd. given EV/EBITDA₅ = 3.713, will be

Correct Answer: (c) 37.90%
Solution:

28. One of the assumptions in Black-Scholes option pricing model is that underlying asset prices are

Correct Answer: (c) Log-normally distributed
Solution:

The Black-Scholes model assumes that the option is a European-type option and can only be exercised at expiration. It also assumes that no dividends are paid out during the life of the option; that market movements cannot be predicted; that there are no transaction costs in buying option; that the risk-free rate and volatility of the underlying are known and constant; and that the prices of the underlying asset follow a log-normal distribution.

29. In which one of the following service products, price sensitivity of the customers is low?

Correct Answer: (c) Medical services
Solution:Price sensitivity is the degree to which demand changes when the cost of a product or service changes.
• Price sensitivity is commonly measured using the price elasticity of demand, which states that some consumers won't pay more if a lower-priced option is available.
• The importance of price sensitivity varies relative to other purchasing criteria; quality may rank higher than price, making consumers less susceptible to price sensitivity.
• In medical services price sensitivity of the customers is low.

30. Which one of the following is true while segmenting consumer markets on demographic basis?

Correct Answer: (b) Low predictability of consumer choice behavior and low cost of measurement
Solution:

Market segmentation is a marketing term that refers to aggregating prospective buyers into groups or segments with common needs and who respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.
• Demographic segmentation is one of the simple, common methods of market segmentation. It involves breaking the market into customer demographics such as age, income, gender, race, education or occupation. This market segmentation strategy assumes that individuals with similar demographics will have similar needs.
• The statement, 'Low predictability of consumer choice behavior and low cost of measurement is true while segmenting consumer markets on demographic basis.