commerce solved question paper

commerce solved question paper
Solved Sample Question Paper : Commerce

1. Assertion (A): ROI has aptly been regarded as the primary ratio as it specifies the relative net profit earned on capital employed. Du Pont Chart shows the manner in which the key elements coverage into the ROI
Reason (R): An approximate measure of Return on Equity (ROE) cannot be derived from ROI as the portion of assets financed by equity is difficult to determine.
Ans. (b)

2. Assertion (A): The cost of demolishing an old building preparatory to the construction of a new building in that place is to be treated as Capital Expenditure.
Reason (R): Such cost is not incidental to the construction of the new building.
Ans. (c)

3. Assertion (A): Once incorporated, the name of a Public Limited Co. cannot be changed.
Reason (R): The name of a public limited company must be distinct and should not mislead or resemble that of any other Company.
Ans. (d)

4. Assertion (A): An office system is a standard sequence of operations in a particular business activity and is concerned with how these operations are performed as well as by whom and when they are performed.
Reason (R): Systems include operations; people and purpose.
Ans. (b)

5. Assertion (A): Franking Machines are used for printing postage on mailed letters.
Reason (R): Franking Machines are to be purchased from the market and if doesn’t require a license from the postal deptt.
Ans. (c)

6. Assertion (A): Organization and Methods .is a conscious attempt to improve the quality of management and maintains efficient administrative machinery.
Reason (R): It involves detailed investigation with regard to the subject to be investigated, say proce4ures already being followed.
Ans. (a)

7. Assertion (A): A transferee of shares cannot sue the promoters of a Company for misinformation in the prospectus.
Reason (R): The information provided by the company promoters in the prospectus is addressed only to the original allottees.
Ans. (a)

8. Assertion (A): Effective motivation is moderated by organizational complexity and conflicts.
Reason (R): An individual’s motives may be complex and conflicting.
Ans. (b)

9. Assertion (A): According to theory ‘X’ all employees dislike work and must be coerced, controlled or threatened to make them work.
Reason (R): Theory X makes an assumption about the basic human nature which is relevant to the employees also.
Ans. (d)

10. Assertion (A): Everything that goes to increase the importance of the subordinate’s role is delegation.
Reason (R): Subordinates can be trained by delegation.
Ans. (b)


12. Douglas McGregor made five basic assumptions about people in his theory. First four assumptions are:
1. People are ambitious
2. They seek responsibility
3. They are dynamic
4, They recognize and accept organizational goals
The fifth assumption is:
(a) people are always cooperative and cheerful at their work
(b) People are not self-centered
(c) People are by nature resistant to change
(d) People are intelligent and possess creative potential
Ans. (a)

13. Which one of the following statements is not correct?
(a) Management by objectives is a philosophy of management
(b) Management by objectives is an approach of management
(c) Management by objectives is a process of participative management
(d) Management by objectives is a control technique
Ans. (b)

14. Management by objectives is implemented in an organization by stages.
One such stage action planning includes:
1. assigning responsibilities for achieving objectives
2. choosing strategies appropriate to the objectives
3. allocating resources for achieving objectives
4. scheduling specific activities to achieve maximum resourceful utilization.
Identify from the following combinations the correct sequence in which the action planning stages are implemented:
(a) 1, 2, 3, 4
(b) 2, 3, 4, 1
(c) 3, 4, 1, 2
(d) 2, 1, 3, 4
Ans. (b)

15. Various plans that an organization may formulate are for—purpose or mission, objective, strategies, policies, rules and procedures, programmes or projects and budget. These can be arranged in a hierarchy because higher level plans give/generate lower level plans. -
Identify the correct order according to hierarchy of plans from amongst the following:
(a) Purpose or mission, objective, strategies, policies, rules and procedures, programmes or projects and budget
(b) Budget, objectives, policies, rules and procedures, purpose or mission, strategies and programmes or - projects
(c) Purpose or mission, objectives, policies, strategies, programmes or projects, budget, and rules and procedures
(d) Strategies, objectives, policies, purpose or mission, programmes or projects, rules and procedures, and budget
Ans. (c)