NTA UGC NET/JRF Exam, June 2020 Commerce (Morning-Shift)

Total Questions: 100

1. As per Section 80G maximum deduction allowed for any cash donation is upto

Correct Answer: (b) Rs. 2,000
Solution:

As per sect. 80G maximum deduction allowed for any cash donation is upto '2000'.
Finance Act 2017 amendel section 80G so as to provide that no deduction shall be allowed.
Under section 80G in respect of donation of any sum exceeding 2000-/ unless such sum is paid by any mode other than cash. earlier this limit was Rs. 10,000.

2. In Leontief production function, L is considered as

Correct Answer: (c) Binding constraint in the production process
Solution:

(1) The Leontief production function (LPF) named for the father of input-output economics wassily Leontief. It is also known as the fixed proportions production function. We still see the output (Q) being a function of capital (K) and Labour (L). The designation of min refers to the smallest number for K and L.

(2) The Isoquants in the LPF are right angles.

(3) A binding constraint is one where some optimal solution is on the line for the constraint. Thus if this constraint were to be changed slightly (in a certain direction) This optimal solution would no longer be feasible. A non-binding constraint is one where no optimal solution is on the line for the constraint.

3. EPRG Framework in International Business refers to

Correct Answer: (b) Ethnocentirc, Polycentric, Regiocentric and Geocentric Orientations
Solution:

EPRG frame work in International Business refers to Ethnocentric Polycentric. Regio-centric and Geocentric orientations. It is a frame work created by Howard V perlmuter and wind and Douglas. in '1969'.
It designed to be used in the internationalization process of businesses and mainly addresses how companies view international management orientations.

4. Which one of the following is not a major direct selling company in India?

Correct Answer: (d) Hindustan Unilever Ltd.
Solution:

Direct selling means when distributors avoid intermediaries in the supply chain and sell products directly to consumers.

In traditional retail settings, products are sold online or at a physical store, but direct selling relies heavily on sales people getting in front of customer in nontraditional settings.

Hindustan unilever Ltd. a large distribution network comprising 5000 redistribution stockists and 40 'c & f agents (clearing & forwarding). The first phase of the HUL distribution network had wholesalers placing bulk orders directly with the company.

5. Which one of the following statements is 'True' in partnership?

Correct Answer: (b) Any firm which earns normal profit has no goodwill
Solution:

Good will is the value of the reputation of a firm built over time with respect to the expected future profit over and above the normal profits.

(1). In absence of a partnership deed, no partner is entitled to remuneration
(2). Business of the firm may be carried on by one or more partners.
(3). Interest on loan given by a partner to the firm shall be paid irrespective of profit or losses.

6. Which of the following relationships is NOT true in a model distribution

Correct Answer: (e) (*)
Solution:

In the case of a moderately skewed distribution i.e. in general, the difference between means and mode is equal to three times the difference between the mean and median. Thus, the empirical relationship as- Mean-mode - 3 (mean-median)
if solved furthers
Mode = 3 Median - 2 Mean and 3 Median = 2 Mean + Mode Hence- 2 median - 3 Quartile Deviation = 2 mean is not true in a model distribution.

7. In continuous compounding, the time it takes to double the sum grossly follow 'Rule of 69'. If it is changed to discrete compounding, the relevent rule of thumb is..........

Correct Answer: (b) Rule of 72
Solution:

The Rule of '72' is a simplified way to estimate the doubling of an investments value based on a logarithmic formula.
The Rule of '72' can be applied to investments inflation or anything that grows seen as GDP or population.
The formula is useful for understanding the effect of compound interest.
The formula for the Rule of '72' is
Years to double = 72/Interest Rate.
Where: Interest Rate = Rate of return on investment.

8. The 'going concern concept' is underlying basis for

Correct Answer: (c) Depreciating fixed assets over their useful lives
Solution:

The going concern concept is a fundamental principle of accounting. It assumes that during and beyond the next fiscal period a company will complete its current plans, use it existing assets, and continue to meet its financial obligations simply put, it is an assumption that the company will stay in business and that the value of its assets will endure.
Disclosing the market value of securities is going concern concept.

9. 'Constraint Optimisation' is closer to which of the following objectives of business firm?

Correct Answer: (c) Satisfying behaviour
Solution:

Constraints can be either hard constraints. which set conditions for the variables that are required to be satisfied, or soft constraints, which have some variable values that are penalized in the objective function if, and based on the extent that, the conditions on the variables are not satisfied.

10. In a rising consumer income scenario, the preferred decision choice of business firms for low income elastic products will be...............

Correct Answer: (d) Product improvement
Solution:

Product improvement is the process making meaningful product changes that result in new customers or increased benefits realized by existing customer the two most popular ways to make product improvements are to add new product features or improve existing ones.