PGT Commerce Level-3 (HTEТ), Exam 2023

Total Questions: 150

91. A condition in which information inflow exceeds an individual's processing capacity:

Correct Answer: D. Information overload
Solution:

Information overload refers to a condition where the amount of input to a system exceeds its processing capacity.
This phenomenon is commonly experienced by individuals when they receive more information than can be processed, leading to difficulties in understanding issues and making decisions.

92. The product life cycle stage in which a product's sales start climbing quickly is:

Correct Answer: B. Growth stage
Solution:

The growth stage of the product life cycle is characterized by a rapid climb in sales. This phase follows the introduction stage and features significant increases in market acceptance, leading to improvements in profitability and further investments in marketing and production.

93. Which one of the following is not an off-the-job training method?

Correct Answer: A. Job Rotation
Solution:

Job rotation is not an off-the-job training method; it is an on-the-job technique. Off-the-job training methods, such as classroom lectures, simulations, and vestibule training, are conducted away from the actual work environment and are structured to train employees without the pressures of ongoing operations.

94. To make others behave in way in which they would not have behaved otherwise:

Correct Answer: C. Need of power
Solution:

The need for power is a psychological drive that reflects a person's desire to make others behave in ways they would not have otherwise. This concept is a part of McClelland's theory of needs, which identifies different motivational drivers, including power, achievement, and affiliation.

95. The process of monitoring and evaluating the nature and direction of change in the business environment is:

Correct Answer: C. Both (A) and (B)
Solution:

Both environmental analysis and environmental scanning are processes involved in monitoring and evaluating the nature and direction of change in the business environment. They are used interchangeably to describe the systematic examination of external influences on an organization's performance and strategy.

96. For creating a company we use:

Correct Answer: B. Alt + F3
Solution:

To create a company in the accounting software Tally, the shortcut used is "Alt + F3". This allows users to access the company creation menu directly, facilitating the setup of new company data within the software environment.

97. The idea that consumers will not buy enough of the firm's products unless it undertakes a large scale selling and promotion efforts:

Correct Answer: A. Selling concept
Solution:

The Selling Concept in marketing posits that consumers will not purchase enough of the company's products unless there is a significant effort in selling and promotion. This concept emphasizes aggressive marketing to generate sales, reflecting an outbound marketing strategy.

98. X, Y and Z are partners sharing profits in equal ratio. Capital balances of 1st April, 2023 are X ₹ 50,000, Y ₹ 40,000, Z ₹ 30,000. Their private assets are: X ₹ 20,000, Y ₹ 2,000 and Z ₹ 5,000. What is the extent of their liability in the firm?

Correct Answer: C. X ₹ 70,000, Y ₹ 42,000, Z ₹ 35,000
Solution:

Given the unlimited liability in a partnership, the partners X, Y, and Z are responsible not only for their capital contributions but also potentially their private assets. The total extent of their liability would be the sum of their capital contributions and private assets.
Therefore, for X, the liability would be ₹ 50,000 (capital) + ₹ 20,000 (private assets) = ₹ 70,000; for Y, it would be ₹ 40,000 (capital) + ₹ 2,000 (private assets) = ₹ 42,000; for Z, it would be ₹ 30,000 (capital) + ₹ 5,000 (private assets) = ₹ 35,000.
This illustrates the principle of unlimited liability where all personal assets can be considered in the event of the firm’s financial distress.

99. X and Y sharing profits in the ratio of 7: 3 admit Z for 3/7 shares in the new firm which he takes 2/7 from X and 1/7 from Y. The new ratio of X, Y and Z will be:

Correct Answer: C. 29 : 11 : 30
Solution:

Old Ratio = 7 : 3
Z’s Share = 3/7
X’s Sacrifice in favour of Z = 2/7
X’s Sacrifice Ratio = Old Ratio − New Ratio
2/7 = 7/10 − New Ratio
New Ratio = 7/10 − 2/7
X’s New Ratio = 29/70
Y’s Sacrifice in favour of Z = 1/7
Y’s Sacrifice Ratio = Old Ratio − New Ratio
1/7 = 3/10 − New Ratio
New Ratio = 3/10 − 1/7
Y’s New Ratio = 11/70
New Ratio = X : Y : Z
New Ratio = 29/70 : 11/70 : 3/7
= 29 : 11 : 30
Therefore, if X and Y sharing profits in the ratio of 7 : 3, admit Z for 3/7 share in the new firm in which he takes 2/7 from X and 1/7 from Y. The new ratio of X, Y and Z will be 29 : 11 : 30.

100. Consider the following statements:

Assertion (A): If a shareholder fails to pay the amount of one or more calls on his shares, the company may forfeit his shares.
Reason (R): Even after the forfeiture of shares, that shareholders is responsible to pay the amount due from him until the company receives full amount on those shares.
Now select your answer according to the coding scheme given below:

Correct Answer: B. Both (A) and (R) are true, but (R) is not the correct explanation of (A)
Solution:

Both the assertion (A) and the reason (R) are true. A company can indeed forfeit shares if a shareholder fails to pay call amounts, but the reason given (R) that the shareholder remains responsible for the unpaid amount until fully paid by new transactions is not the explanation of the forfeiture policy. Forfeiture typically eliminates the defaulter's liability for future payments.