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

Total Questions: 100

81. Arrange the following steps of employee training in the proper sequence:

A. Familiarize the employee with equipment, materials, tools, and trade terms
B. Create interest and find out what the employee already knows about the job
C. Explain why the employee is being trained
D. Place the trainee/employee as close to the normal working position as possible
E. Explain the whole job and relate it to some other job which the employee already knows
Choose the correct answer from the options given below:

Correct Answer: (b) C, B, E, D, A
Solution:

Steps of employee training in the proper sequence are :-
Step I Explain why the employee is being trained
Step II Create interest and find out what the employee already knows about the job
Step III Explain the whole job and relate it to some other job which the employee already knows
Step IV Place the trainee/employee as close to the normal working position as possible
Step V Familiarize the employee with equipment, materials, tools, and trade terms

82. Risk management process follows the following steps in which logical sequence?

A. Selection of appropriate risk model for analysis
B. Identification of risk variable
C. Determination of frequency and severity of risk
D. Feedback on the risk management process
E. Application of a suitable risk instrument
Choose the correct answer from the options given below:

Correct Answer: (c) B, C, A, E, D
Solution:

Identification of risk variable
↓
Determination of frequency and severity of risk
↓
Selection of appropriate risk model for analysis
↓
Application of a suitable risk instrument
↓
Feedback on the risk management process

83. Arrange the following purchases made by a customer as per Maslow’s hierarchy of needs theory starting with the lower order needs.

A. Purchase of House
B. Purchase of an expensive car
C. Taking a club membership
D. Enrolling in a learn-by-yourself course
E. Purchase of bathing soap
Choose the correct answer from the options given below:

Correct Answer: (c) E, A, C, B, D
Solution:

Purchases made by a customer as per Maslow’s hierarchy of needs theory starting with the lower order needs are :-
→ Purchase of bathing soap
→ Purchase of House
→ Taking a club membership
→ Purchase of an expensive car
→ Enrolling in a learn-by-yourself course

84. Arrange the following decision outcomes under the Indian Consumer Protection Act, 1986 in a rising sequence of severity of offences.

A. Removal of defects
B. Impos cost on parties
C. Return of price paid
D. Discontinuation of unfair practices
E. Compensation to consumer
Choose the correct answer from the options given below:

Correct Answer: (b) A, C, E, D, B
Solution:

Decisions outcomes under the Consumer Protection Act, 1986 in a rising sequence of severity of offences are :-
Removal of defects
↓
Return of price paid
↓
Compensation to consumer
↓
Discontinuation of unfair practices
↓
Impos cost on parties

85. Steps involved in computation of tax on agricultural income in India are followed in which sequence?

A. Add basic exemption limit to Net agricultural income and calculate tax
B. Deduct rebate u/s 87A from the total income
C. Add Health Cess
D. Add Agricultural and Non-agricultural income and calculate tax on total income
E. Calculate difference of tax in both computations
Choose the correct answer from the options given below:

Correct Answer: (d) D, A, E, B, C
Solution:

Steps involved in computation of tax on agricultural income in India are :-
Step I Add Agricultural and Non-agriculture income and calculate tax on total income
Step II Add basic exemption limit to Net agriculture income and calculate tax
Step III Calculate difference of tax in both computations
Step IV Deduct rebate u/s 87A from the total income
Step V Add Health Cess

86. Given below are two statements

Statement I
Thousands of small firms in developing countries have closed their shutters because of the competition from large MNCs.
Statement II
MNCs have played a significant role in the development of poor countries by transfer of technology, introducing best management practices and help in improving productivity.
In light of the above statements, choose the correct answer from the options given below:

Correct Answer: (a) Both Statement I and Statement II are true
Solution:

Statement I : “Thousands of small firms in developing countries have closed their shutters because of the competition from large MNCs” is correct.
Statement II : “MNCs have played a significant role in the development of poor countries by transfer of technology, introducing best management practices and help in improving productivity” is correct.
Here, both statement I and statement II are true.

87. Given below are two statements, one is labelled as Assertion A and the other is labelled as Reason R.

Assertion (A)
Economic profit is smaller than accounting profit.
Reason (R)
Accounting profit = Revenue – Explicit costs
Economic Profit = Revenue – Explicit costs – Implicit Costs
In light of the above statements, choose the correct answer from the options given below

Correct Answer: (a) Both (A) and (R) are true and (R) is the correct explanation of (A)
Solution:

Economic profit is smaller than accounting profit because accounting profit = Revenue – Explicit costs
Economic Profit = Revenue – Explicit costs – Implicit Costs.
Here, Accounting profit is usually larger than economic profit because the implicit cost is ignored.
Hence, both A and R are true and R is the correct explanation of A.

88. Given below are two statements :

Statement I
The stage in the manufacturing process where products are made separately identifiable is called split-off point.
Statement II
The production cost incurred after the split-off point are called separable costs.
In light of the above statements, choose the correct answer from the options given below

Correct Answer: (a) Both Statement I and Statement II are true
Solution:

Statement I : “The stage in the manufacturing process where joint products are separately identifiable is called split-off point” is correct.
Statement II : “The production cost incurred after the split-off point are called separable costs” is correct.
Here, both statement I and statement II are true.

89. Given below are two statements

Statement I
Long term capital loss can only be set off against the long term capital gains.
Statement II
Long-term capital gains exceeding Rs. one lakh are subject to tax at the rate of 10% with indexation and at 20% without indexation.
In light of the above statements, choose the most appropriate answer from the options given below

Correct Answer: (c) Statement I is correct but Statement II is incorrect
Solution:

Statement I : “Long-term capital loss can only be set off against the long term capital gains” is correct.
Statement II : “Long-term capital gains exceeding Rs. one lakh are subject to tax at the rate of 10% with indexation and at 20% without indexation” is incorrect because gains exceeding Rs. one lakh are subject to tax at the rate of 10% without indexation and 20% with indexation.
So, statement I is correct but statement II is incorrect.

90. Given below are two statements, one is labelled as Assertion A and the other is labelled as Reason R.

Assertion (A)
One of the most difficult product to sell is ‘life insurance’ such that one who sells life insurance can sell anything under the Sun.
Reason (R)
What is sought to be marketed in life insurance is an assurance whereby payment of money is assured upon death or the happening of any contingency depended upon human life.
In light of the above statements, choose the correct answer from the options given below

Correct Answer: (a) Both (A) and (R) are true and (R) is the correct explanation of (A)
Solution:

One of the most difficult product to sell is life insurance such that one who sells life insurance can sell anything under the Sun because what is sought to be marketed in life insurance is an assurance whereby payment of money is assured upon death or the happening of any contingency depended upon human life.
Here, both A and R are true and R is the correct explanation of A.