SEBI Grade A 300 Plus Mcqs With Answers

SEBI GRADE A
300+ MCQs
WITH ANSWERS
Commerce & Accountancy

Costing
Management
Finance
Economics
Companies Act
Contents
Commerce and Accountancy .............................................................. 2
Costing: ................................................................................................ 15
Management : .................................................................................... 28
Finance : .............................................................................................. 41
Economics: .......................................................................................... 54
Companies Act : ................................................................................. 67
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Commerce and Accountancy
Q1. Which of the following is an intangible asset?

A. Railway sidings
B. Leasehold land
C. Plant and machinery
D. Mining rights
E. None of the above
Answer - D
Q2. Which of the following is not included while computing Effective Capital ?
A. Paid Up share capital
B. Long term loans
C. Revaluation Reserves
D. Surplus
E. Equity
Answer - C
Q3.Which of the following is covered under Ind AS 18?
A. Contracts
B. Hire purchase
C. Insurance
D. Leases
E. Royalties
Answer - E
Q4. A startup was formed for production and marketing of a product .At the end of the
financial year which of the following they are not compelled to prepare ?
A. Balance sheet
B. Trading Account
C. Profit & Loss Account
D. Cash Flow Statement
E. None Of the above
Answer - D
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Q5. Securities Premium Account is shown on the liabilities side in the balance sheet under
the heading :
A. Current Liabilities
B. Reserves & Surplus
C. Share Capital
D. Paid Up Capital
E. Equity Capital
Answer - B
Q6. As per schedule lll trade payables will include
I. Dues payable in respect to statutory
II. Interest accrued on trade payables
III. Interest accrued on trade payables
IV. Creditors
A. Only I & III
B. Only II & III
C. Only II & IV
D. Only IIl & IV
E. Only I & IV
Answer -D
Q7 Fixed assets of company are put up for sale and are monetized .They will be classified
in the balance sheet of the company as _____________
I. Current Assets
II. Current Liabilities
III. Non- Current Assets
IV. Non – Current Liabilities
A. Only I & III
B. Only I
C. Only II
D. Only IIl & IV
E. Only I & IV
Answer - B
Q8. When Current Assets are taken out from the current liabilities we will get _______
A. Capital
B. Debt
C. Income
D. Working Capital
E. Goodwill
Answer - D
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Q9. As per companies act 2013,which of the following report is not required to be
submitted /furnished by a business
A. Balance Sheet
B. P & L statement
C. Cashflow Statement
D. Auditor Report
E. All
Answer - D
Q10. In accordance with section 92 of the companies Act, 2013 every company should
prepare an annual return in the form prescribed by the Companies Act 2013 signed by a
______.
I. Director
II. Company Secretary
III. Auditor
A. Only I & II
B. Only I
C. Only II
D. Only IIl & IV
E. Only I & IV
Answer -A
Q11 The annual report issued by a company is addressed to _________
A. Directors
B. Government
C. Shareholders
D. Management
E. Employees
Answer - C
Q12. Retained earnings fluctuate due to several reasons,which of the following can be one
of the reasons of its decline ?
A. Net Profit
B. Net Loss
C. Net Income
D. All of the given options are correct
E. Investment
Answer – B
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Q.13 Financial statement of a company are helpful in disclosing ___________
A. Monetary Information
B. Qualitative Information
C. Market Position
D. All of the above
Answer - A
Q14. As per section 197 of the companies act 2013,total managerial remuneration payable
by a public company ,to its directors, including managing director and whole – time
director, and its manager in respect of any financial year should not exceed _______%
A. 10
B. 11
C. 12
D. 13
E. 14
Answer - B
Q15. The distribution of divisible profit of a company among of the members according to
the number of shares held by each of them in the capital of the company is termed as
_______
A. Wealth
B. Dividends
C. Surplus
D. Reserves
E. None
Answer - B
Q16. Annual Return is to be filled by every company within _______days of holding Annual
general meeting.
A. 30
B. 45
C. 65
D. 60
E. 100
Answer - C
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Q17. When the right to apply to right issues is not exercised by the shareholder but is
transferred by him/her in favour of another person, it is referred to as______
A. Transfer of Right
B. Renunciation of right
C. Rejection of right
D. Transmission of right
E. Non-exercise of Right
Answer - B
Q18. 4. Which of the following is not a qualitative characteristic of accounting
information?
A. Relevance
B. Reliability
C. Comparability
D. Accountability
E. Understandability
Answer - D
Q19. Which of the following statement related to Buy back of shares is incorrect?
A. Buy back up-to 10% of the total paid up capital and free reserves of the company
can be made simply by the Board of Directors Resolution
B. Buy back can be made up to 25% of the total paid up capital and free reserves by
value and 25% of equity by volume
C. The ratio of the aggregate secured and unsecured debts owed by the company
after the buy back should not be more than twice the paid up capital and free
reserves
D. Buy back of equity shares is allowed out of fresh issue of equity shares of that
class
E. All are correct
Answer – D
Q20. Which of the following is a capital expenditure?
A. Inauguration cost of new plant
B. Overhauling cost of second hand machinery
C. Cost for improving material efficiency
D. Replacement cost of spare parts
E. Expenses to reduce working cost
Answer – B
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Q.21 which of the following ratios measures the ability of a firm to earn and adequate
return on sales ,total assets and invested capital ?
A. Profitability Ratio
B. Liquidity Ratio
C. Solvency Ratio
D. Activity Turnover Ratio
E. Leverage Ratio
Answer - A
Q22.A company has a operating profit ratio of 10%,To maintain this ratio at 15% ,which of
the following steps can be taken by the management ?
a) Decrease the selling price of stock in trade
b) Increase cost of revenue from operations
c) Increase the selling price of stock – in trade
d) Decrease the cost of revenue from operations
A. A & C
B. B & D
C. A & D
D. B & C
E. C & D
Answer - D
Q23. From Given Formulas, which of the following is correct for calculating Operating
Ratio ?
A. Operating Profit = working capital/Net Revenue from operation
B. Operating Profit = Net Revenue from operation / working capital
C. Operating Ratio = (operating cost/ Revenue from operations) X 100
D. Operating Ratio = (Revenue from operations / operating cost) X 100
Answer - C
Q24. The difference between capital employed and non current liabilities is known as
A. Shareholder’s Fund
B. Total Asset
C. Total Liabilities
D. Total Debts
Answer – A
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Q25 Which of the following ratios is not a part of Profitability Ratio?
A. Price Earning Ratio
B. Dividend Payout Ratio
C. Earning Per Share
D. Trade Payable Ratio
E. Both B & D
Answer - D
Q26. Which of the following is /are the objectives of calculating the liquidity ratio ?
1. The ratio provides a measure of the capacity of the business to meet its short –
term obligations without any flaw
2. The ratio provides a measure of the capacity of the business to meet its long term
obligations without any flaw
3. This ratio measures the degree of indebtedness of an enterprise and gives an idea
to the long term lender regarding extent of security of the debt
A. Only 1
B. Only 2
C. Both 1 & 3
D. Both 2 & 3
E. Only 3
Answer -A
Q27. The ascertainment of result of the recorded transactions of a business can be
achieved using which of the following ?
1. Profit & Loss account
2. Financial reports
3. Balance sheet
4. Trading
A. Only 1
B. Only 2
C. 2&3
D. 2&4
E. 1&4
Answer - A
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Q28. Which of the criteria can be achieved for the financial information by way of
accounting ?
1. Recording Transactions
2. Classifying Transactions
3. Summarising Transactions
4. Analysing Transactions Communicating Transactions
A. Only 1
B. 1&4
C. 1,2,3
D. 3&4
E. All of the above
Answer - E
Q29. Which among the following are the external users for business ?
A. Offices
B. Managers
C. Partners
D. Suppliers
E. Directors
Answer - D
Q30. On June 12th 2022,after selling goods worth RS. 5000 I am left with closing inventory
of RS. 10,000. This is classified as
A. An Event
B. A transaction
C. Profit
D. Both 1 & 2
E. Both 2 & 3
Answer -D
Q31. The users of accounting information contains ________
1. Creditors
2. Lenders
3. Suppliers
4. Customers
A. 1&3
B. 2&3
C. 1&2
D. 3&4
E. All the above
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Answer - E
Q32. Financial statement does not relate with which of the following
A. Assets expressed in monetary terms
B. Liabilities expressed in monetary terms
C. Asset and liabilities in non- monetary terms
D. Assets and liabilities in quantitative terms
Answer - C
Q33. Which of the following are main functions of accounting ?
1. Decision making
2. Forecasting
3. Government regulation
4. Control
5. Ledger posting
A. All of the above expect 5

B. All the above expect 3
C. All the above expect 1,3,4
D. All the above expect 4
E. All of the above
Answer - A
Q34. Which of the following can be understood as the differences between book keeping
and accounting ?
A. Book Keeping is process concerned with recording of transactions
B. Accounting is a process concerned with summarising of the recorded
transactions
C. Book keeping is a process concerned with summarising of the recorded
transactions
D. Both 1 & 2
E. Both 2 & 3
Answer - D
Q35. All transaction with suppliers and customers are governed by __________
1. Contract Act
2. Sale Of Goods Act
3. Negotiable Instrument Act
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A. 1&2
B. 2&3
C. 1&3
D. Only 2
E. All of the above
Answer - E
Q36. Which of the ollowing can be considered as a limitation of accounting ?
A. Transparency
B. Recording Transactions
C. Showing fair and true value
D. Standardising Policies
E. Inflation
Answer - E
Q37. It is a management tool whereby an auditor thoroughly examines the accounting
transactions and also the system known as ________
A. Internal Audit
B. Statutory Audit
C. Concurrent Audit
D. External Audit
E. Financial Audit
Answer - A
Q38. Accounting standards _______
A. Harmonize accounting policies
B. Eliminate the non – comparability of financial statements
C. Improve the reliability of financial statements
D. A&C
E. All of the above
Answer - E
Q39. IFRS are considered a “principles – based” set of standards, In fact they establish
broad rules rather than dictating specific treatments. Large numbers of authorities
requires public companies to use IFRS for stock – exchange listing purpose . what does IFRS
stands for ?
A. Indian Flexible Reporting System
B. Indian Financial Reporting System
C. International Financial Reporting Standards
D. Indian Financial Reporting Standards
E. International Financial Reporting System
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Answer - C
Q40. The Indian accounting standards are not applicable to ____________
1. Charitable Trusts
2. NGOs
3. Cooperative Bodies
A. Only 1
B. Only 2
C. 1&2
D. 2&3
E. All of the above
Answer – E
Q41 .As per the AS -2, certain costs are excluded from the cost of the inventories and are
recognized as expenses ,which of the following is an example of such costs ?
1. Production Costs
2. Labour Costs
3. Selling Costs
4. Distribution Costs
5. Administrative Overheads
6. Work in Process
7. Finished Goods
A. All of the above expect 4

B. All of the above expect 6 & 7
C. All of the above expect 3 & 4
D. Only 3 & 4
E. Only 6 & 7
Answer – B
Q42 .which of the following are added in the costs of purchase in inventory valuation ?
1. Duties
2. Taxes
3. Duty Drawbacks
4. Trade Discounts
5. Purchase Price
A. 1,2,3
B. 1,2,5
C. 1,2
D. 4,5
E. All
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Answer – B
Q.43 FIFO means _________
A. First Inventory Finished Out
B. Finished stock in Final Stock Out
C. Follow up stock in Finished stock out
D. First in First Out
E. Finished Stock in First Inventory Out
Answer - D
Q.44 under recognizing revenue from service transaction, how many methods are
available?
A. 1
B. 2
C. 3
D. 4
E. 5
Answer – B
Q. 45 The amount at which an asset is recognized after deducting any accumulated
depreciation and accumulated impairment losses is ________
A. Expense
B. Carrying Amount
C. Net Amount
D. Depreciable Amount
E. Impairment Loss
Answer – B
Q. 46 The present value of the cash flows an entity expects to arise from the continuing
use of an asset and from its disposal at the end of its useful is termed as ___________
A. Net Present Value
B. Entity Value
C. Fair Value
D. Salvage Cost
E. Returns
Answer – B
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Q.47 Average Exchange rate cannot be used when the exchange rate is :
A. Constant For a period of time
B. Fluctuating significantly
C. The same on the opening and closing dates
D. Different on the opening and closing dates
E. Lesser than the opening date
Answer - B
Q.48 On disposal of an investment ,what should be recognised in the P&L a/c ?
A. Carrying Amount
B. Disposal Proceeds
C. Disposal Proceeds – Expenses
D. Carrying Amount – Disposal proceeds
E. Carrying amount – disposal proceeds – expenses
Answer – E
Q.49 A written evidence available in support of a transaction that has occurred in a
business is called _______
A. Journal
B. Ledger
C. Ledger Posting
D. Voucher
E. Bill of Entry
Answer – D
Q.50 The right of the shareholder to transfer the right to buy securities to any person is
technically termed as _________
A. Right To Transfer
B. Right To Renounce
C. Right To Sell
D. Right To Share
E. All the above
Answer - B
Q.51 The debenture interested paid is recorded in which part of the final accounts of a
limited company?
A. Trading account
B. Income statement
C. Profit and loss appropriation account
D. Balance sheet
E. All the above
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Answer - B
Costing:
Q1 The process of accounting which begins with recording of income and expenditure or
the bases on which they are calculated and ends with the preparation of periodical
statement and reports for ascertaining and controlling costs is ____________
A. Financial Accounting
B. Cost Accounting
C. Management Accounting
D. Tax Accounting
E. Auditing
Answer - B
Q2. In which of the following is the process costing method suitable?
A. Transport
B. Chemical Industry
C. Construction of Dam
D. Making Of Furniture
E. Retail chain /store
Answer - B
Q3. Which of the following cannot be an advantage of using IT cost accounting ?
A. Stock Reconciliation
B. Functional Integration
C. Reduced usage of documentation
D. Preparation of customized reports
Answer - A
Q4. An Auto charges minimum RS.30 thereafter RS.3 per kilometer of distance travelled,
the behaviour of conveyance cost is __________
A. Semi – Variable Cost
B. Fixed Cost
C. Variable Cost
D. Administrative Cost
E. Indirect Cost
Answer – A
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Q5. _________is anything for which a separate measurement of cost is required. It may be
a product , a services ,a project ,a customer , a brand category ,an activity , a department
or a programme etc .
A. Cost Object
B. Cost Unit
C. Cost Driver
D. Cost Centre
E. Direct Cost
Answer - A
Q6. CIMA official terminology defines this as “factor influencing the level of cost”. This
factor is also an activity which is responsible for cost incurrence. Which of the following
factor is being discussed here ?
A. Cost Object
B. Cost Unit
C. Cost Driver
D. Cost Centre
E. Direct Cost
Answer - D
Q7. Which of the following can be considered as limitation of cost accounting ?
1. Expensive
2. Cost Effective
3. Duplication Of Work
4. Standardization Of Work
A. 1 & 3
B. 1 & 4
C. 2 & 4
D. 2 & 3
E. All of the above
Answer - A
Q8. Cost that can be controlled ,typically by a cost, profit or investment centre manager is
called___________
A. Uncontrollable Costs
B. Controllable Costs
C. Normal Costs
D. Abnormal Costs
E. Direct Costs
Answer – B
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Q9. These are the costs , which are not assigned to the products but are charged as
expenses against the revenue of the period in which they are incurred .
A. Sunk Costs
B. Opportunity Costs
C. Shutdown Costs
D. Period Costs`
E. Explicit Costs
Answer - D
Q10. Under this method of costing ,cost of each job is ascertained separately .which of the
following is the method ?
A. Process Costing
B. Contract Costing
C. Batch Costing
D. Single Costing
E. Multiple Costing
Answer -B
Q11. Each activity within an entity is segmented to analyse and identify value added and
non – value added activities. All non – value added activities are eliminated without
affecting the essential characteristics of the product or process. This is __________
A. Cost Reduction
B. Cost Control
C. Cost Analysis
D. Cost Comparison
E. Cost Accounting
Answer - A
Q12. Who amongst the following lives on an odd numbered floor?
A. O
B. The one who goes to India
C. The one who goes to Italy.
D. Q
Answer - C
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Q13. A machine has been replaced because of its prolonged usage and wear and tear. The
written down value of the existing machine is a __________
A. Sunk Cost
B. Shut Down Cost
C. Engineered Cost
D. Implicit Cost
Answer - A
Q14. Indirect expenses which are incurred in the factory and for the running pf the factory
can be categorized under ___________
A. Work overheads
B. Production overheads
C. Administration Overheads
D. A&C
E. B&C
Answer - D
Q15. Decentralized branches of an organization can be categorized in which of the
following centres ?
A. Cost Centres
B. Responsibility Centres
C. Profit Centres
D. Investment Centres
E. Revenue Centres
Answer - C
Q16. The application of the principles of accounting and financial management to create
,protect ,preserve and increase value for the stakeholders of for – Profit and not- for-
profit enterprises in the public and private sectors is known as ____________
A. Cost Accounting
B. Financial Accounting
C. Management Accounting
D. Public Accounting
E. Corporate Accounting
Answer - C
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Q17. Which of the following is a component of breakeven analysis?
1. P/V ratio
2. Fixed costs
3. Variable costs
4. Gross Profits
5. Contribution
A. 2 & 4
B. 1 & 4
C. 4 & 5
D. 1,2,4
E. 1,2,5
Answer - E
Q18. The deviations between actual and standard cost is known as __________
A. Multiple Analysis
B. Variable Cost Analysis
C. Variance Analysis
D. Linear trend Analysis
E. Smoothening
Answer - C
Q19. Under Standard cost system the cost of the product determined at the beginning of
production is _____________
A. Direct Cost
B. Pre – determined Cost
C. Historical Cost
D. Actual Cost
E. Nominal Cost
Answer - A
Q20. Jobs undertaken by IT and ITES organization are categorized or Considered as
_________
A. Project
B. Batch Work
C. Contract
D. Outsourcing
E. All the above
Answer – A
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Q21. The Cost Of diesel and lubricant is an example of _________
A. Operating Cost
B. Fixed Charges
C. Semi – Variable cost
D. Overheads
Answer - A
Q22. Under the Non – Integrated accounting system
A. Same ledger is maintained for cost and financial accounts by accountants
B. Separate ledgers are maintained for cost and financial accounts
C. It Contains fewer accounts
D. A&B
E. C&D
Answer - E
Q23. Which of the following is also known as general ledger?
A. Cost Ledger
B. Stores Ledger
C. Work in Process Ledger
D. Finished Goods Ledger
E. Overhead Ledger
Answer - A
Q24. Which of the following is the difference between financial and Cost accounting?
1. Cost accounting is the ascertainment of cost for the purpose of cost control and
decision making
2. Financial Accounting provides information about the financial performance of an
entity
3. Financial accounting records only historical data whereas cost accounting records
historical and predetermined costs
4. Vice versa of 3
A. 1 is true
B. 3 is true
C. Both 1 & 2 is true
D. 1,2,3
E. 1,2,4
Answer - D
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Q25. The differences between cost control and cost reduction is __________
A. In cist control emphasis on past and present whereas in cost reduction it is on
present
B. In cost reduction emphasis is on past and present whereas in cost control it is on
present
C. In cost control emphasis is on past and present whereas in cost reduction its is on
present and future
D. In cost reduction emphasis is on past and present whereas in cost control it is on
present and future
E. In cost reduction emphasis is on past and in cost control it is on future
Answer - C
Q26. What is NVA in ABC costing ?
A. Non Value Addendum
B. Non Valorem added activities
C. Non value added activities
D. Non Valorem Addendum
E. Net Value Addition
Answer - C
Q27. ________is a measure of the frequency and intensity of demand
A. Resources Cost Driver
B. Activity Cost Driver
C. Unit Cost Driver
D. Batch Cost Driver
E. Object Cost Driver
Answer -B
Q28. Organisation,who do not wish to know how much it cots to make a product with
precise accuracy, may be happy with _____(1)______costing system. Others, however, fix
their price on cost basis and need to determine it with reasonable accuracy. The latter
organisations have been greatly benefitted from the development
of______(2)______costing. Which of the following will fill in (2) and (1) respectively ?
A. Activity based, Traditional
B. Modern absorption, Traditional
C. Activity based , Modern absorption
D. A&B
E. C&D
Answer – D
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Q29. ________is anything for which a separate measurement of cost is required .
A. Cost
B. Cost Object
C. Cost Centre
D. Cost Driver
E. Cost Record
Answer - B
Q30. For rendering of services which costing method is the best suitable ?
A. Process Costing
B. Multiple Costing
C. Output Costing
D. Contract Costing
E. Operating Costing
Answer - E
Q31. Which of these are true about standard cost?
a) An estimated or pre – determined cost of performing an operation or producing a
good or service
b) Used as a basis for cost control through variance analysis
c) It is a post determined cost
A. Only a
B. Both a & b
C. Both b & c
D. Only b
E. Only c
Answer - B
Q32. Which of the following are reasons of rate related issues affecting labour variance ?
a) Labour shortage leading to higher rates
b) Low labour wages
c) Union agreement
A. Only a
B. Only b
C. Only c
D. a & b
E. a & c
Answer – E
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Q33. Which of the following are issues related to labour variance ?
a) Change in design and quality standard
b) Low motivation
c) Poor working condition
d) Improper scheduling /placement of labour
A. Only a
B. Only b
C. Only c
D. Both a & b
E. All of the above
Answer - E
Q34. Who sits fourth to the right of P?
A. U
B. W
C. The person facing W
D. The one who sits opposite to P
E. None of these
Answer - D
Q35. Which among the following are reasons of material variance ?
a) Change in basic prize
b) Use of sub standard material
c) Ineffective use of materials
d) Fail to purchase anticipated standard quantities at appropriate price
A. Only a
B. Only b
C. Only c
D. Both a & b
E. All of the above
Answer - E
Q36. ________= standard price (Standard Quantity – Actual Quantity)
A. Material standard variance
B. Material actual variance
C. Material usage variance
D. Material price variance
E. Material cost variance
Answer - C
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Q37. Which of the following standard are the costs which the business will incur if the
anticipated prices are paid for goods and services and the usage corresponds to that
believed to be necessary to produce the planned output ?
A. Normal Standard
B. Variance Standard
C. Bogey Standard
D. Current Standard
E. Ideal Standard
Answer - D
Q38. Which of the following standards are used only when they are likely to remain
constant or unaltered over long period?
A. Normal Standard
B. Variance Standard
C. Bogey Standard
D. Current Standard
E. Ideal Standard
Answer - C
Q39. Marginal costing is a technique of cost and management accounting which is used to
analyse relationship between cost volume and ___________
A. Revenue
B. Profit
C. Assets
D. Capital
E. None
Answer – B
Q40. Which of the following statement is incorrect regarding the marginal costing ?
a) It is a costing system where products or services and inventories are valued at
variables costs only.
b) It dose not take consideration of variable costs
c) Costs are classified on the basis of function of cost (i.e fixed and variable) rather
than behaviour of cost
A. Only a
B. Only a & b
C. Only a & c
D. Only b & c
E. Only c
Answer - D
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Q.41 which of the following statement are true ?
a) The marginal costs are treated as the cost of product
b) Fixed costs are not considered for valuation of closing stock of finished goods and
closing WIP
c) Fixed costs are treated as period costs and are charged to profit and loss account
for the period for which they are incurred .
A. Only a
B. a&b
C. a&c
D. b&c
E. all the above
Answer - E
Q.42 which of the following can be defined as the angle formed by the intersection of
sales line and total cost line at the breakeven points?
A. Angle Of Margin
B. Angle Of Reflection
C. Angel Of Incidence
D. Angle Of Profit
E. Angle Of Revenue
Answer – C
Q.43 Which of the following statement is true about break – even chart?
a) A breakeven chart records costs and revenues on the vertical axis and the level of
activity on the horizontal axis
b) The breakeven points is that point where the sales revenue line intersects the total
cost line
c) Other measures like the margin of safety and profit can also be measured from the
chart .
A. Only a
B. a & b
C. a & c
D. b & c
E. all of the above
Answer – E
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Q.44 Variable and semi variable cost is useful in the preparation of _______budget.
A. Fixed Budget
B. Current Budget
C. Flexible Budget
D. Cost Budget
E. Production Budget
Answer – C
Q.45 which of the following is usually a short term budget ?
A. Capital Expenditure Budget
B. Research And Development Budget
C. Cash Budget
D. Sales Budget
E. Fixed Budget
Answer – C
Q.46 Activity Ratio Depicts _________
A. Whether actual capacity utilized exceeds or falls short of the budgeted
capacity
B. Whether the actual hours used for actual production were more or less
than the standard hours
C. Whether actual activity was more or less than the budgeted capacity
D. Actual activity is always less than the budgeted activity
E. Actual capacity is always less than the budgeted capacity
Answer – C
Q.47 These types of budget are prepared on the basis of activity level or utilization of
capacity. These are also known as “capacity budgeting”. Which of the following falls under
this category?
A. Sales Budget
B. Fixed Budget
C. Flexible Budget
D. A&C
E. B&C
Answer – E
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Q.48 which of the following techniques can be used to conduct root cause analysis ?
A. 5 Why
B. Fishbone diagram
C. Cause and effect diagram
D. All of the above
Answer – D
Q.49 Pull system is beneficial in case of _________
A. Under Production
B. Over Production
C. Slow Production
D. Moderate Production
Answer – B
Q.50 Kaizen system is/are __________
A. A one – time improvement
B. Little changes suggested by an external consultant
C. Continuous improvement
D. One time change suggested by an external consultant
E. Continuous changes suggested by an external consultant
Answer – C
Q.51 The lean system gives a lot of importance to ____________
A. Innovation
B. Capacity Building
C. Questioning Status Quo
D. Developing Best Practices
E. Production
Answer – C
27 | P a g e
Management :
Q1. Which of the following personalities is considered as ‘Father of Scientific
Management’? (1 M)
A. Henry Mintzberg
B. F W Taylor
C. Henry Fayol
D. Elton Mayo
E. Mary Parker Follet
Answer - B
Q .2)” There should be one head and one plan for group of activities”. This concept
proposed by Henry Fayol is called as_____? (1 M)
A. Unity of Direction
B. Unity of Command
C. Centralization
D. A and B
Answer: A
Q.3) Which of the following personalities is considered as ‘Father of Human Relations
Approach? (1 M)
A. Abraham Maslow
B. Douglous Mcgregor
C. Elton Mayo
D. Max weber
E. Mary Parker Follet
Answer: C
Q.4) Rensis Likert proposed a concept of integrating individual and organizational goals.
What is the concept called? (1 M)
A. Goal Merger
B. Linking Goals
C. Integral Pin
D. Linking Pin
Answer: D
28 | P a g e
Q.5) A process whereby the superior and subordinate jointly identify common goals,
define each individual's major areas of responsibility in terms of the results expected of
him or her, and use these measures as guides for operating the unit and assessing the
contribution of each of its members. It refers to. (1 M)
A. Liberation Management
B. Management Information Systems (MIS)
C. Management by Objective
D. Management by Exception
Answer: C
Q.6) Henry Mintzberg in his first comprehensive study, concluded that what managers do
can best be described by looking at the managerial roles they engage in at work. He
divided the managerial roles into how many heads. (1 M)
A. 2
B. 3
C. 4
D. 5
E. 6
Answer: B
Q.7) Which of the following function is considered as ‘Life Spark of the enterprise’ which
sets in motion the action of the people? (1 M)
A. Planning
B. Organizing
C. Staffing
D. Directing
E. Controlling
Answer: D
Q.8) Which of the following type of plan is a short-term plan? (1 M)
A. Strategic Plan
B. Tactical Plan
C. Operational Plan
D. Contingency Plan
Answer: B
29 | P a g e
Q.9) Which of the following is a powerful decision-making technique used to extract ideas
from a group of people. Under this technique, groups are formed, and each individual is
provided with a platform to explore and express their idea to others? (1 M)
A. Delphi Technique
B. Brainstorming
C. Nominal Group technique
D. Multi Voting
E. Didactic Interaction
Answer: B
Q.10)” Starting with an overly high salary request resulted in higher salary offers”. Which
of the bias can the above statement be classified as? (1 M)
A. Confirmation Bias
B. Overconfidence Bias
C. Hindsight Bias
D. Anchoring Bias
E. The Halo Bias
Answer: D
Q.11) Which of the following concept introduces the specialization in doing tasks at the
lower levels? (1 M)
A. Functional Foremanship
B. Differential Piece Rate System
C. Division of Labour
D. Centralisation
E. Motion Study
Answer: A
Q.12) “An individual in the interview responds without making an eye contact to the
interviewer”. In which category of the non-verbal communications does it fall into? (1 M)
A. Paralinguistics
B. Kinesics
C. Haptics
D. Oculeics
E. Proxemics
Answer: D
30 | P a g e
Q.13) A way of communication between employees from different organizational units
and from different hierarchy levels is called as______? (1 M)
A. Downward communication
B. Upward communication
C. Lateral communication
D. Diagonal communication
Answer: D
Q.14. Which of the following thinker highlighted that “All the living beings existing in the
planet communicate although the way of communication is different”? (1 M)
A. MacLean model
B. S F Scudder
C. Shannon and Weaver
D. Aristotle
E. Schramm
Answer: B
Q.15) Which of the following can be considered as Free-Rein style/Abdicative Style of
Leadership? (1 M)
A. Giving all responsibility and authority to leaders
B. Involvement of subordinates in making decisions
C. Subordinates or departments are allowed to work according to their style
with minimal interference
D. A and B
E. B and C
Answer: C
Q.16) Traits that dominate an individual’s whole life, often to the point that the person
becomes known specifically for these traits. What are they called? (1 M)
A. Central Traits
B. Founding Traits
C. Cardinal Traits
D. Secondary Traits
E. Basic Traits
Answer: C
31 | P a g e
Q.17) Which of the following type of leadership style is centered around McGregor’s
Theory X of management? (1M)
A. Impoverished management
B. Produce or Perish Management
C. Middle of the Road
D. Country Club
E. Team Management
Answer: B
Q.18) John Adair has developed a prominent functional leadership model. It has
connecting 3 circle approach that is called as____? (1 M)
A. Born leadership
B. Action Centred Leadership
C. Trait Leadership
D. Contingency Leadership
E. Cognitive Resource Theory
Answer: B
Q.19) According to Fiedler’s Contingency Approach, concept of LPC is used to measure if a
leader is task oriented or production oriented. What does LPC stand for? (1 M)
A. Leadership productivity Score
B. Leader Priority Questionnaire
C. Leader Point Count
D. Least prefer co-worker Questionnaire
Answer: D
Q.20) Which of the following leadership theory is called as “Life Cycle theory” of
Leadership? (1 M)
A. Fiedler’s model
B. Hersey and Blanchard model
C. Path Goal model
D. Vroom and Yetton model
E. A and C
Answer: B
32 | P a g e
Q.21) In the Leader-Participation Model, the way a leader decides is also as important as
what he/she decides. For determining the form and amount of participation, this model
use a decision tree with how many contingencies? (1 M)
A. 4
B. 5
C. 6
D. 7
E. 10
Answer: D
Q.22) Calling, Listening, Empathy, Healing, Persuasion, Foresight, Conceptualisation,
growth are characteristics of which of the following Leaders? (1 M)
A. Transactional Leader
B. Transformational Leader
C. Servant Leader
D. Engaging Leader
Answer: A
Q.23) The concept of in-groups and out-groups are associated with which of the following
leadership theories? (1M)
A. Leader Member Exchange
B. Leadership Continuum Theory
C. Transformational Leadership
D. Full Range Leadership
Answer: A
Q.24) Leaders using media to manage the headlines and engage in direct banter with
millions of followers on Facebook and Twitter is called as ____? (1 M)
A. Authentic Leadership
B. Level 5 Leadership
C. Leadership by Optics Management
D. Ambidextrous Leadership
E. Trans Leadership
Answer: C
33 | P a g e
Q.25) Rensis Likert is best known for classification of leadership styles into four categories.
What is the style when “leaders have full confidence in the subordinates and ensure
meaningful participation”? (1 M)
A. Exploitative Autocratic
B. Benevolent Autocratic
C. Participative
D. Democratic
Answer: D
Q.26) Which of the following models gives a quantitative approach for managerial decision
making? (1 M)
A. Critical Path Method
B. PERT Technique
C. MIS
D. All of the above
Answer: D
Q,27) ‘OCTOPAC’ refers to which of the following concept in management? (1 M)
A. Human Resource Development
B. Total Quality Management
C. Decision Making
D. Management Functions
E. Human Resource Management
Answer: A
Q.28) W.M Deming suggested 4 step model to implement TQM in the organization. Which
of the following represents the model? (1 M)
A. PDOC
B. PLDC
C. PDCA
D. PACD
Answer: C
34 | P a g e
Q.29) Laterally mobilizing employees and letting them serve their tasks at different levels,
roles, skills to evaluate employee’s performance and find a best-fit role for their profile.
The above statement refers to ____? (1 M)
A. Job Enrichment
B. Job Enlargement
C. Job Rotation
D. Job Analysis
E. Both A and B
Answer: C
Q.30) Which of the following concept of Wage Administration is considered as ‘Golden
Handcuff’? (1 M)
A. Profit Sharing
B. Employee Stock Option (ESOP)
C. Leave Travel Alliance
D. Gratuity
E. Dearness Allowance
Answer: B
Q.31) Ranking, Factor Comparison and Grading method are associated with which of the
following? (1 M)
A. Job analysis
B. Job Evaluation
C. Job Design
D. Training
E. Performance Appraisal
Answer: B
Q.32) It is a form of training with the goal of making people aware of their own goals as
well as their prejudices and are more sensitive to others and to the dynamics of group
interaction. What does it refer to? (1 M)
A. In Basket Training
B. Sensitivity Training
C. Simulation Training
D. Role Playing
Answer: B
35 | P a g e
Q.33) Which of the following training model follows result-based approach and takes into
account Return on Investment? (1 M)
A. Instructional System Design
B. ADDIE Model
C. Kirkpatrick Model
D. Phillips Model
Answer: D
Q.34) A method of career pathing that contains both vertical sequence of jobs and a series
of horizontal opportunities is called as ______? (1 M)
A. Traditional Career Path
B. Dual Career Path
C. Network Career Path
D. Lateral Skill Path
Answer: C
Q.35) The Process in which manager make top-down assessments and rating the
performance of their subordinates in annual meeting is called as _________? (1 M)
A. Performance Appraisal
B. Performance Management
C. A and B
D. Career Development
Answer: A
Q.36) Which of the following appraisal methods focuses on the employee’s future
performance rather than past one? (1 M)
A. Paired Comparision
B. 360-degree Appraisal
C. Critical Incident Appraisal
D. Psychological Appraisal
E. Confidential Report
Answer: D
36 | P a g e
Q.37) An Organization that is skilled at creating, acquiring, and transferring knowledge and
modifying its behaviour to reflect new knowledge and insights is called as ________? (1 M)
A. Rational Organization
B. Learning Organization
C. Flexible Organization
D. Skilled Organization
Answer: B
Q.38) Which of the following process ensures a ‘right fit for a right job’ ? (1 M)
A. Staffing
B. Recruitment
C. Selection
D. Job Description
E. Job Design
Answer: A
Q. 39) A job can be divided into ____ core dimensions by Job Characteristics' approach?
(1 M)
A. 2
B. 3
C. 4
D. 5
E. 6
Answer: C
Q.40) According to Maslow’s Hierarchy of Needs, ‘Achievement, Responsibility and
Independence’ falls under which type of need? (1 M)
A. Physiological
B. Safety
C. Social
D. Esteem
E. Self-Actualisation
Answer: D
37 | P a g e
Q.41) Which of the following motivational theory is based on the concept of
“Homeostasis”? (1 M)
A. Goal Setting theory
B. Mayo’s theory
C. Drive-Reduction Theory
D. Expectancy theory
E. ERG Theory
Answer: C
Q.42) In motivation theories, ‘Satisfaction-Dissatisfaction theory’ was introduced by ?
(1M)
A. Henry Mintzberg
B. Clayton Paul Alderferer
C. Federeick Herzberg
D. McClellend
Answer: C
Q. 43) When Employees rank job security on the top and needs formal direction for
work,it falls under which of following theory? (1 M)
A. Theory X
B. Theory Y
C. Theory Z
D. Argyris Theory
Answer: A
Q.44) Frustration-regression concept is linked with which of the following theories of
motivation? (1 M)
A. 2 Factor Theory
B. ERG Theory
C. Mayo’s Motivation Theory
D. Equity Theory
E. Goal Setting Theory
Answer: B
38 | P a g e
Q.45) According to McClelland Human Motivation theory, which of the following type of
employees are called as gamblers? (1 M)
A. Individuals with high achievement needs
B. Individuals motivated by power
C. Individuals motivated by affiliation
D. A and B
E. All of the above
Answer: A
Q.46) Goal Setting involves development of an action plan designed to motivate and guide
a person or group toward a goal. Goal-setting theory is proposed by ________? (1 M)
A. B F Skinner
B. Richard Ryan
C. Albert Bandura
D. Edwin Locke
E. Victor H.Room
Answer: D
Q.47) This theory highlights that rewards that mainly have a controlling aspect tend to
decrease intrinsic motivation. It is also a subset of Self Determination Theory.? (1 M)
A. Reinforcement Theory
B. Expectancy Theory
C. Cognitive Evaluation Theory
D. Maturity-Immaturity Theory
Answer: C
Q.48) Which of the following statements is true with respect to Porter and Lawler’s
Expectancy theory? (1 M)
A. Satisfaction always leads to better performance
B. Satisfaction does not always lead to better performance
C. Performance always results in satisfaction
D. Performance results in satisfaction if reward systems are effective
E. B and D are true
Answer: E
39 | P a g e
Q.49) What is Pygmalion effect? (1 M)
A. Form of self-fulling prophecy in which believing something can make it true
B. It refers to gaining relevant experience increasing efficacy
C. Gaining confidence when you see yourself as similar to the person you are
observing
D. A and B
E. B and C
Answer: A
Q.50) Motives stimulates a specific behaviour within an individual to accomplish a desired
goal. Curiosity and manipulation fall under which of the following motives? (1 M)
A. Primary Motives
B. Secondary Motives
C. General Motives
D. B and C
Answer: C
Q.51) People behave as they do because of the kind of consequences they experience as a
result of them behaviour. Which of the following thinkers has propounded above concept?
(1 M)
A. Lyman Porter and Edward Lawler
B. McGregor
C. Vroom
D. B F Skinner
Answer: D
40 | P a g e
Finance :
Q.1) Which of the following are the functions of the Money market?(1 M)
1. It forms the basis for management of liquidity and money in the economy by the
monetary authorities.
2. To provide reasonable access to the users of short-term money for meeting their
requirements at realistic prices.
3. Improve the efficiency of capital allocation through a competitive pricing mechanism.
A. 1 and 2
B. 2 and 3
C. 1 only
D. 2 only
E. All of the above
Answer: Option A
Q.2) Which of the following market is called as stock market?(1 M)
A. Call Money Market
B. Money Market
C. Primary Market
D. Secondary Market
E. C and D
Answer: Option D
Q.3) Which of the following instruments of money market provide liquidity to government
and banks?(1M)
A. T-Bills
B. Commercial Bills
C. Certificate of Deposit
D. A and C
E. All of the above
Answer: Option D
Q.4) Which of the following entities are recognized as participants of Call Money Market
by RBI?(1 M)
A. Regional Rural Banks
B. Cooperative Banks
C. Payment Banks
D. B and C
E. A and B
Answer: Option D
41 | P a g e
Q.5)Which of the following statements regarding treasury bills is incorrect?(1 M)
A. They are issued by Central Government and State Governments
B. They are issued at discount to face value.
C. It acts as the requirement for CRR and SLR for banks.
D. A and C
E. All of the above
Answer: Option A
Q.6) What does CBLO stand for ?(1 M)
A. Collective Bank Lending Obligation
B. Collective Borrowing Lending Obligation
C. Collateralized Bank Lending Obligation
D. Collective Borrowing Lending Obligation
E. Collateralized Borrowing and Lending Obligation
Answer: Option E
Q.7) Primary Issuances by companies are governed by the SEBI in terms of SEBI(ICDR)
Regulations,2009. What does ICDR stand for _____?(1 M)
A. Integrated Capital and Disclosure Requirements
B. Issue of Capital and Disclosure Requirements
C. Issue of Cost and Disclosure Requirements
D. Integrated Cost and Disclosure Requirements
Answer: Option B
Q.8) Which of the following institutions are classified as Qualified Institutional
Buyers(QIB)?(1 M)
1. Scheduled Commercial Banks
2. Pension Funds and Provident Funds with min corpus of Rs.25 Crores
3. FIIs registered with SEBI
A. 1 and 2
B. 2 and 3
C. 1 and 3
D. All of the above
Answer: Option D
42 | P a g e
Q.9)Which of the following options is used by companies to provide stability to price of
the share in secondary market immediately on listing?(1 M)
A. Depository Receipts
B. Qualified Institutional Placement
C. Preferential Issue
D. Green Shoe Option
Answer: Option B
Q.10) What is stock split?(1 M)
A. It is a decision of Company’s Board to increase the number of shares by issuing
more shares to current shareholders in 2:1 ratio
B. An invitation to existing shareholders to purchase additional new shares in the
company.
C. It is a purchase by a company of its outstanding shares that reduces the number
of its shares in the open market.
D. They are issued out of profits to its shareholders.
Answer: Option A
Q.11) Bonds issued by the Government with a year or less to maturity are called as
__________?(1M)
A. Bills
B. Notes
C. Bonds
D. Treasuries
E. A and D
Answer: Option E
Q.12) Companies may pay and call back their bonds by callability feature. This would be
usually done when the rates in the market are usually low. Which of the following does
the above fall into?(1 M)
A. Credit Risk
B. Default Risk
C. Prepayment Risk
D. Interest Rate Risk
E. A and B
Answer: Option C
43 | P a g e
Q.13) Which of the following is the most common yield measurement?(1 M)
A. Current Yield
B. Nominal Yield
C. Yield to Maturity(YTM)
D. Yield to call(YTC)
E. Realized Maturity
Answer: Option C
FINANCE
Q.14) In Bond Yield ,What is Macaulay Duration?(1 M)
A. The period when theoretically the bond holder would have lost his capital
investment
B. The period when theoretically the bond holder would have received exactly his
capital investment.
C. The period when theoretically the bond holder would have received 1.5 times his
capital investment
D. The period when theoretically the bond holder would have received 2 times his
capital investment
Answer: Option D
Q.15)Which of the following statements are correct about the relationship about the bond
variables?(1 M)
A. Interest Rate and Bond Price are inversely proportional to each other.
B. Interest Rate and Bond Price are proportional to each other.
C. Interest Rate and Yield are directly proportional to each other.
D. A and C
E. All of the above
Answer: Option D
Q.16) What does LYON stand for ?(1 M)
A. Liquidity Yielding Option Notes
B. Liquidity Yielding Option Net
C. Liquid Yield Option Notes
D. Liquid Yield Option Net
E. None of the Above
Answer: Option C
44 | P a g e
Q.17) The objective of which of the following bonds is to hedge or safeguard the investor
against macro - economic risks in the country?(1 M)
A. Convertible Bond
B. Callable Bond
C. Puttable Bond
D. Inflation Indexed Bond
E. Gilt edged securities
Answer: Option D
Q.18) Which of the following is correct with respect to Earnings multiple?
A. It is company’s net profit divided by the number of common shares it has
outstanding
B. It is an important factor to be analysed when making a decision to invest in a
stock.
C. It is the actual earnings of the company.
D. A and C
Answer: Option B
Q.19) STRIPS stand for?(1 M)
A. Separate Trading of Registered Interest and Principal Securities
B. Securities Trading of Registered Interest and Principal System
C. System Trading of Registered Interest and Principal Securities
D. Special Trading of Registered Interest and Principal Securities
Answer: Option A
Q.10) Which of the following bonds fall under the category of corporate bonds(1 M)
1. Callable Bonds
2. Puttable Bonds
3. Convertible Bonds
A. 1 and 2
B. 2 and 3
C. 1 and 3
D. 1 only
E. All of the above
Answer: Option E
45 | P a g e
Q.21) Which of the following are the benefits of the derivatives?(1M)
1. They reduce the risk and enable the willingness to hold an asset.
2. They lower the transaction costs.
3. They provide information on the direction and the magnitude of in which various
market indices are expected to move.
A. 1 and 2
B. 2 and 3
C. 1 only
D. 1 and 3
E. All of the above
Answer: Option E
Q.22) Which of the following is a contract between two entities to exchange the cash flows
in future according to the prearranged formula ?(1 M)
A. Futures
B. Options
C. Swap
D. Warrants
E. Forwards
Answer: Option C
Q.23) Which of the following instrument is subject to counter party risk?(1 M)
A. Forwards
B. Futures
C. Options
D. A and B
E. All of the above
Answer: Option A
Q.24) The difference between the spot price and the future price of a future is called as
_____?(1 M)
A. Margin
B. Hedge difference.
C. Marking-to-market
D. Basis
E. Spread
Answer: Option D
46 | P a g e
Q.25)Which of the following type of options can be exercised only on the maturity date of
the option?(1 M)
A. Call Option.
B. Put Option
C. European Style Option
D. American Style Option
Answer: Option C
Q.26) Which of the following will lead to zero cash flow when an option is exercised
immediately ?(1 M)
A. At-the-money option
B. In-the-money option
C. Out-of-the-money option
D. A and B
E. B and C
Answer: Option A
Q.27) Which of the following measures the correlation of the price movement of an option
with its underlying stock/asset?(1 M)
A. Gamma
B. Delta
C. Beta
D. Theta
E. Rho
Answer: Option B
Q.8) Which of the following is correct with respect to SEBI(Securities Exchange Board of
India) ?(1M)
A. It was established in 1988 as a statutory body for regulating the securities
market.
B. SAT (Securities Appellate Board) is a non-statutory body.
C. It is also the regulator of commodity market in India.
D. A and B
E. B and C
Answer: Option E
47 | P a g e
Q.29) Which of the following are functions of Finance Commission?(1 M)
1. Distribution of net proceeds of taxes between centre and states to be divided as per
their respective contributions to the taxes.
2. Determine factors governing grants-in-aid to the states.
3. To make recommendations to the president as to the measures needed to augment the
fund of a state to supplement the resources of panchayats and municipalities in the state.
A. 1 and 2
B. 1 and 3
C. 2 and 3
D. 3 only
E. All of the above
Answer: Option E
Q.30) Which of the following statements regarding FSDC(Financial Stability and
Development Council) is correct?(1 M)
1. It is chaired by RBI Governor.
2. It is a statutory body formed in the year 2010.
3. It was set up to strengthen and institutionalize the mechanism for maintaining financial
stability, enhancing inter-regulatory coordination and promoting financial sector
development.
A. 1 and 2
B. 3 only
C. 1 and 3
D. 2 and 3
E. All of the above
Answer: Option B
Q.31) Time value of money is central to the concept of finance. Which of the following are
the factors Affecting Value of Money?(1M)
1. Risk and Uncertainty
2. Inflation
3. Consumption
4. Investment Opportunities
A. 1 ,2 and 3
B. 2 ,3 and 4
C. 1 ,3 and 4
D. 1 and 4
E. All of the above
Answer: Option E
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Q.32) The newly empowered Section 45MBA of RBI Act 1934 deals with ?(1 M)
A. Removal of directions and Supersession of the board
B. Regulation of Housing Finance Companies
C. Resolution of NBFCs
D. Debarment of Auditors
Answer: Option C
Q.33) Which of the following statements regarding the payments banks is correct?(1 M)
1. NBFCs cannot be a promoter for payment banks.
2. The minimum paid-up capital for payments bank is Rs 100 crore.
3. It does not need to maintain CRR and SLR.
A. 1 and 2
B. 2 only
C. 2 and 3
D. 1 and 3
E. All of the above
Answer: Option B
Q.34) Which of the following are incorrect with respect to Small Industries Development
Bank of India(SIDBI) ?(1 M)
1. It is a statutory body formed in the year 1990.
2. It works under the Ministry of MSMSE for promoting small-scale sector in the country.
3. RBI holds the highest shareholding in SIDBI.
A. 1 and 2
B. 2 and 3
C. 1 and 3
D. 3 only
E. All of the above
Answer: Option E
Q.35) Which of the following are correct with respect to Serious Fraud Investigation
Office(SFIO) ?(1 M)
1. It is not a statutory body and is formed in the year 2003.
2. It was formed under the recommendation of Naresh Chandra Committee.
3. It works under the Ministry of Corporate Affairs.
49 | P a g e
A. 1 and 2
B. 1 and 3
C. 2 and 3
D. All of the above
Answer: Option C
Q.36) In order to give the next push to the lending platforms, the aggregate exposure of a
lender to all borrowers at any point of time, across all P2P platforms, shall be subject to a
cap of _________ ?(1 M)
A. ₹10 lakh
B. ₹50 lakh
C. ₹100 lakh
D. ₹150 lakh
E. ₹180 lakh
Answer: Option B
Q.37) Peer-to-Peer Lending in India is regulated by which of the following
organisation?(1M)
A. SEBI
B. RBI
C. FSDC
D. Niti Aayog
E. IBBI
Answer: Option B
Q.38) Consider the following the statements with respect to a form of raising capital?(1M)
1. Faster way of raising capital for companies as they have to comply with lesser
requirements.
2. Avoids time and expense of registering with SEBI.
3. It is available only for select group of investors.
A. Initial Public Offering
B. Rights Issue
C. Private Placement
D. Factoring
Answer: Option C
50 | P a g e
Q.39) A method in which a bank advances cash to an exporter against invoices or
promissory notes guaranteed by importers bank?(1 M)
A. Factoring
B. Leasing
C. Franchising
D. Forfeiting
E. Crowd Funding
Answer: Option D
Q.40) Which of the following statements regarding NBFCs(Non-Banking Finance Company)
is correct?(1 M)
A. A CIC having an asset size of Rs.100 crore & above and which has accessed public
funds would be treated as systemically important core investment company (CIC-
ND-SI) .
B. Every CIC-ND-SI is required to obtain Certificate of Registration (COR) from RBI
under Section 45-IA of the Reserve Bank of India Act, 1934.
C. CIC-ND-SI is not required to fulfill the criteria of having minimum net owned fund
(i.e. rupees two crores) subject to adherence to other prudential norms.
D. A and B
E. All of the above
Answer: Option E
Q.41) Which of the following is an expansionary monetary policies?(1M)
A. It tries to reduce the inflationary pressures in the economy.
B. It is a policy generally followed during recession times.
C. It has a neutral effect on the level of economic activity.
D. It is not a sustainable policy and leads to budgetary deficits.
E. B and D
Answer: Option E
Q.42) Which of the following bills allows government to withdraw funds from
Consolidated Fund of India?(1M)
A. Finance Bill
B. Money Bill
C. Appropriation Bill
D. Vote an Account
Answer: Option C
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Q.43) Which of the following are not part of Revenue Receipts?(1 M)
A. Tax Revenue
B. Recovery of Loans and Advances
C. Profits and Dividends
D. Government receives financial help from foreign governments and international
organization
E. All of the above
Answer: Option B
Q.44) Which of the following are part of Capital Expenditure?(1 M)
A. Salary Paid to Army Officer
B. Interest paid on national debt
C. Government expenditure on investment of land, building ,equipment and
machinery.
D. Central assistance for state and UT’s.
E. C and D
Answer: Option E
Q.45) Which of the following is the leading deficit indicator and also the best one to
measure the health of the budget in Indian context?(1 M)
A. Monetary Deficit
B. Effective Revenue Deficit
C. Revenue Deficit
D. Fiscal Deficit
E. Primary Deficit
Answer: Option D
Q.46) Government spending using up financial and other resources that would otherwise
be used by private enterprise is called as ______ ?(1 M)
A. Crowding out Effect
B. Deficit Financing
C. Keynesian Effect
D. Loanable Funds
Answer: Option A
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Q.47) Which of the following statements are correct is called as Medium Term Fiscal Policy
Statement?(1 M)
1. It is a statutory document which sets out the 3-year rolling targets for fiscal indicators.
2. It is an assessment of sustainability relating to balance between revenue receipts and
revenue expenditure and the use of capital receipts, including market borrowings for
generation of productive assets.
3. It includes three fiscal indicators in relation to Gross Domestic Product at Market Prices.
A. 1 and 2
B. 2 and 3
C. 1 and 3
D. All of the above
Answer: Option A
Q.48) The NK Singh-led panel on fiscal responsibility (set up by the finance ministry) had
suggested overall public debt-to-GDP ratio of ______by 2022-23?(1M)
A. 20%
B. 40%
C. 60%
D. 50%
E. 30%
Answer: Option C
Q.49) Which of the following statements regarding the Escape clause of FRBM Act 2018 is
incorrect?(2 M)
A. This terminology was innovated by the NK Singh Committee on FRBM.
B. The Escape Clauses can be invoked by the states after formal consultations and
advice of the Fiscal Council.
C. It gives a clear commitment to return to the original fiscal target in the coming
fiscal year.
D. A and B
E. All of the above
Answer: Option B
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Q.50) Which of the following means being conservative when estimating your revenues
but accounting for the unforeseen when estimating your expenditure.?(1 M)
A. Fiscal Prudence
B. Fiscal Deficit
C. Fiscal Consolidation.
D. Fiscal Federalism
Answer: Option E
Q.51) Finance Commission was established by President of India in 1951 under which of
the following articles of the constitution ?(1M)
A. Article 270
B. Article 275
C. Article 280
D. Article 285
Answer: Option C
Economics:
Q.1)Which of the following is a tabulated statement that indicates different quantities of
commodity that would be demanded at different prices?(1M)
A. Law of Demand
B. Demand Schedule
C. Demand Curve
D. Demand Elasticity
Answer: Option B
Q.2) Which among the following is also called as Prestige Goods Effect?(1M)
A. Veblen Effect
B. Giffen Goods Effect
C. Philips Effect
D. A and B
Answer: Option A
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Q.3) Unitary Elastic Demand is related with which of the following?(1 M)
A. Cross Elasticity of Demand
B. Income Elasticity of Demand.
C. Price Elasticity of Demand
D. A and B.
E. B and C
Answer: Option C
Q.4) Which of the following are conditions are exception to the Law of Supply ?(1 M)
A. A market ruled by single seller.
B. Huge Competition.
C. Hoarding
D. Auction Goods
E. All of the above
Answer: Option E
Q.5) When a when a greater change in price leads to smaller change in quantity supplied
,it is called as_______? (1 M)
A. Perfectly Elastic Supply
B. Perfectly Inelastic Supply
C. Relatively Elastic Supply
D. Relatively Inelastic Supply
E. Unitary Elastic Supply
Answer: Option D
Q.6) Which of the following situations best explains the Equilibrium Price?(1M)
A. When every customer who wishes to buy the product at the market price is able
to do so.
B. When every customer who wishes to buy the product at the market price is
unable to do so
C. When Supplier is left with any unwanted inventory.
D. A and B
E. A and C
Answer: Option E
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Q.7) Which of the following is not a quantitative method of explaining consumer
demand?(2 M)
A. Law of Diminishing Marginal Utility
B. Indifference Curve
C. Total Utility Analysis
D. A and C
E. None of the above.
Answer: Option B
Q.8) Which of the following is a part of Intangible Capital?
A. Raw Materials
B. Workforce
C. Durable Goods
D. Intellectual Patent Rights
E. B and D
Answer: Option D
Q.9)Which of the following refers to the change in the total product per unit change in the
quantity of variable factor?(1 M)
A. Total Product
B. Average Product
C. Marginal Product
D. Gross Product
Answer: Option C
10) Which of the following is correct with respect to a kinked demand curve?(1M)
A. It occurs when the demand curve is a straight line with same elasticity for higher
and lower prices
B. It occurs when the demand curve is not a straight line but has a different
elasticity for higher and lower prices
C. It occurs when the demand curve is not a straight line but has a different
elasticity for higher and lower supplies.
D. It occurs when the demand curve is a straight line but has same elasticity for
higher and lower supplies.
Answer: Option C
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Q.11) In Short-Run Production Function , which of the following factors of production are
constant?(1M)
A. Land
B. Labor
C. Capital
D. Entrepreneur
Answer: Option C
Q.12) Which of the following are the features of the perfect market?(1M)
A. Large number of Sellers and Buyers
B. Presence of Homogenous Commodities
C. Free Entry and Exit
D. Very Low transport cost
E. All of the above
Answer: Option E
Q.13) Cournot Model ,Cartel Model and Price Leadership Model are type of which of the
following market?(1M)
A. Monopoly
B. Duopoly
C. Oligopoly
D. Perfect Competition
Answer: Option C
Q.14) In Short-Run Production Function , which of the following factors of production are
constant?(1M)
A. Land
B. Labor
C. Capital
D. Entrepreneur
Answer: Option C
Q.15) Which of the following are the features of the perfect market?(1M)
A. Large number of Sellers and Buyers
B. Presence of Homogenous Commodities
C. Free Entry and Exit
D. Very Low transport cost
E. All of the above
57 | P a g e
Answer: Option E
Q.16) Cournot Model ,Cartel Model and Price Leadership Model are type of which of the
following market?(1M)
A. Monopoly
B. Duopoly
C. Oligopoly
D. Perfect Competition
Answer: Option C
Q.17)Which of the following are not included in the calculation of Gross Domestic
Product?(1M)
A. Work performed within the family
B. Black Market
C. Transfer Payments
D. Intermediate Goods and Services
E. All of the above
Answer: Option E
Q.18) Which among the following will be included as a part of Gross National
Product(GNP)?(1M)
A. Profits earned by Y, an Indian Company in UK
B. Profits earned by X, a foreign Company in India
C. Depreciation
D. A and C
E. B and C
Answer: Option D
Q.19) Which of the following is considered as National Income(NI)?(1 M)
A. Gross National Product at Factor Cost.
B. Net National Product at Factor Cost.
C. Gross National Product at Market Price.
D. Net National Product at Market Price.
E. Net Domestic Product at Factor Cost.
Answer: Option B
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Q.20) Which of the following are included in Personal Income ?(1
M)
A. Social Security Benefits
B. Unemployment Compensation.
C. Undistributed Corporate Profits
D. A and C
E. A and B
Answer: Option E
Q.21) Which of the following methods of national income shows unduplicated
contribution by each industry to total output?(1 M)
A. Value Added Method
B. Income Method
C. Expenditure Method
D. A and B
E. All of the above
Answer: Option A
Q.21) ’People demand to hold money balances to take advantage of future changes in the
rate of interest’. This is the consideration under which of the following theories of demand
for money?(1M)
A. Quantity Theory of Money
B. Cambridge Approach
C. Keynesian Theory of Money
D. A and B
E. A and C
Answer: Option C
Q.22) ‘Savings deposits with post office savings bank’ is included in which of the following
monetary aggregates?(2 M)
A. M0
B. M1
C. M2
D. M3
E. M4
Answer: Option C
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Q.23) Which of the following is the most liquid of all the Monetary aggregates?
A. M1
B. M2
C. M3
D. M4
E. M0
Answer: Option A
Q.24)Which of the following are included in ‘Other deposits of RBI ‘ component of
M1?(1M)
A. Demand Deposits
B. Currency
C. IMF/World Bank Deposits
D. Interbank Deposits
E. All of the above
Answer: Option C
Q.25) The ratio of change in consumption to the change in income is referred as ?(1M)
A. Investment Function
B. Replacement Consumption
C. Average Propensity to Consume
D. Marginal Propensity to Consume
Answer: Option D
Q.26) Which of the following are part of calculation of Disposable Personal
Income(DI)?(1M)
A. DI= Personal Income-Direct Taxes
B. DI= Per Capita Income-Direct Taxes
C. DI= Personal Income-Indirect Taxes
D. DI= Per Capita Income-Indirect Taxes
Answer: Option A
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Q.27) Which of the following is also called as Factor Payment Method ?(1M)
B. Income Method
D. A and B
E. B and C
Answer: Option B
Q.28) Which of the following factors does not influence Autonomous Investment?(1M)
A. Income
B. Government Policies
C. Innovation
D. Change in Population.
E. All of the above
Answer: Option A
Q.29) Which of the following are part of calculation of Disposable Personal
Income(DI)?(1M)
A. DI= Personal Income-Direct Taxes
B. DI= Per Capita Income-Direct Taxes
C. DI= Personal Income-Indirect Taxes
D. DI= Per Capita Income-Indirect Taxes
Answer: Option A
Q.30) Which of the following is also called as Factor Payment Method ?(1M)
B. Income Method
D. A and B
E. B and C
Answer: Option B
Q.31) Which of the following factors does not influence Autonomous Investment?(1M)
A. Income
B. Government Policies
C. Innovation
D. Change in Population.
E. All of the above
Answer - Option A
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Q.32)’Supply created its own demand’ is the consideration of which of the following
theories?(1M)
A. Keynes Law
B. Philips Law
C. Says Law
D. Walras Law
Answer: Option C
Q.33) Which among the following is correct with respect to Effective Demand(ED)?(1M)
A. It includes the money spent on Consumption.
B. It includes the money spent on Investment.
C. It refers to the demand without considering the inflationary changes.
D. A and B
E. All of the above
Answer: Option D
Q.34) Which of the following measure of unemployment is considered as a comprehensive
measure of employment? (1 M)
A. Usual Principal Status
B. Current Weekly Status
C. Current Daily Status
D. Chronic Status
Answer: Option C
Q.35) Which of the following fall into the category of frictional unemployment ?(1 M)
A. Work suspension due to strikes, outbreaks like COVID etc.
B. Losing jobs because of 4th Industrial Revolution
C. Job Loss due to recession
D. A and C
E. A and B
Answer: Option A
Q.36) The turning point in the business cycle at which output stops increasing and starts
decreasing?(1 M)
A. Expansion
B. Peak
C. Contraction
D. Depression
62 | P a g e
Answer: Option B
Q.37) Which of the following are not factors of a business cycle ?(1M)
A. Fluctuations in effective demand
B. Fluctuations in investment
C. Psychological Factors
D. Money Supply
Answer: Option E
Q.38) Which type of unemployment is a feature of Indian Agriculture?(2 M)
A. Structural Unemployment
B. Cyclical Unemployment
C. Disguised Unemployment
D. Open Unemployment
E. Voluntary Unemployment
Answer: Option C
Q.39) Which of the following situation is correct according to Philips curve?
A. The higher the inflation rate ,the lower is the unemployment.
B. The higher the inflation rate ,the lower is the employment
C. The higher the inflation rate ,the higher is the unemployment
D. The higher the inflation rate ,the higher is the employment
Answer: Option A
Q.40)’MV=PT’ summarizes the belief of Quantity Theory of Money. ‘V’ in the equation
refer to which of thefollowing?(1 M)
A. Money Circulation in the economy
B. Total No. of Transactions
C. No. of Transactions that each unit of money is able to finance.
D. General Price Level
Answer: Option C
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Q.41) Which of the following is correct with respect to Accelerator theory in
investment?(1M)
A. Investment is dependent on the level of consumption/output
B. Investment is dependent on the change in the consumption/output
C. Demand for the consumption goods increases the demand for capital goods
D. A and B
E. B and C
Answer: Option E
Q.42) Base Rate System has been replaced with which of the following system ?(1 M)
A. External Bench Marking
B. Marginal Cost Based Lending Rate
C. Weighted Average Call Money Rate
D. A and B
E. B and C
Answer: Option B
Q.43) Which of the following measures will help RBI fight Inflation?(1M)
A. Increase Cash Reserve Ratio
B. Decrease Statutory Liquid Ratio
C. RBI sells securities through Open Market Operations
D. A and B
E. A and C
Answer: Option E
Q.44) Balance of Payments(BOP) is a statement of all transactions of which of the
following entities ?(2 M)
1. Individuals
2. Companies
3. Governments
A. 1 and 2
B. 2 and 3
C. 1 and 3
D. All of the above
Answer: Option D
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Q.45) Which of the following is correct with respect to MP(Market Price ) of a
product?(1M)
A. MP=Factor Cost (FC)-Net Indirect Taxes
B. MP=Factor Cost (FC)+Indirect Taxes - Subsidies
C. MP=Factor Cost (FC)-Indirect Taxes + Subsidies
D. MP=Factor Cost(FC)+Direct Taxes-Subsidies
Answer: Option B
Q.46) Which of the following method of national income computation is most suitable in
developed economies?(1M)
B. Income Method
D. A and B
E. B and C
Answer: Option B
Q.47) Which of the following is the correct representation of calculation of Per capita
Income?(1M)
A. Per capita Income =GDP/Total Population
B. Per capita Income =GNP/Total Population
C. Per capita Income =NDP/Total Population
D. Per capita Income =NNP/Total Population
E. Per capita Income =National Income/Total Population
Answer: Option E
Q.48) Net Factor Income from Abroad(NFIA) is used to calculate GNP. Which of the
following are included as part of NFIA?(1M)
A. Private Remittances
B. Interest on External Loans
C. Trade Balance
D. A and B
E. All of the above
Answer: Option E
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Q.49) From 2015 onwards, which of the following estimates are used as estimates of
economic activity?(1M)
A. GDP at Factor Cost.
B. GDP at Market Price.
C. GVA(Gross Value Added).
D. B and C
E. All of the above
Answer: Option D
Q.50) Which of the following meets on a daily basis to review the liquidity conditions so as
to ensure the operating target of monetary policy ? (1 M)
A. Monetary Policy Dept.
B. Financial Market Operating Dept.
C. Financial Market Committee
D. All of the above
Answer: Option C
Q.51) Marginal Standing Facility is a scheme introduced by RBI in which of the following
years ?(1 M)
A. 2010.
B. 2011
C. 2013
D. 2014
Answer: Option B
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Companies Act :
Q.1)According to Section 23 of Companies Act,2013 ,in how may ways can a public
company raise funding?(1M)
A. Through Public Offering
B. Through Private placement
C. Through existing shareholders
D. A and C
E. All of the above
Answer: Option E
COMPANIES ACT
Q.2) Power of securities and exchange board to regulate issue and transfer of securities is
dealt under which of the following section of Companies Act,2013?(1 M)
A. Section 24
B. Section 25
C. Section 26
D. Section 27
E. Section 28
Answer: Option A
Q.3) Which of the following is correct with respect to Shelf Prospectus?(1 M)
A. It does not need a separate prospectus for each offering.
B. It is a prospectus that lacks complete particulars about the quantum or price of the
securities.
C. The validity period of the shelf prospectus cannot exceed more than 2 years.
D. A and C
Answer: Option A
Q.4) Which of the following section in the Companies Act,2013 mentions about Red
Herring Prospectus?(1M)
A. Section 30
B. Section 31
C. Section 32
D. Section 33.
E. Section 34
Answer: Option C
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Q.5) According to Section 29,Demat( Dematerialized form) is compulsory for which of the
following?(1 M)
A. Companies going for public offer.
B. Companies going for private placement.
C. Prescribed unlisted companies.
D. A and C
E. All of the above
Answer: Option D
Q.6) Global depository receipt is mentioned in which of the following sections of
Companies Act,2013?(1M)
A. Section 38
B. Section 39.
C. Section 40.
D. Section 41
E. Section 42
Answer: Option D
Q.7) Which of the following are correct with respect to Private Placement.?(2 M)
1. It is mentioned in Section 40 of Companies Act ,2013
2. Maximum limit for the private placement in a financial year cannot exceed 200.
3. Private placement must be made within 60 days.
A. 1 and 2
B. 2 and 3
C. 1 and 3
D. 3 only
E. ALL of the above
Answer: Option B
Q.8) Which of the following legislations regulate the public issue in India?(1 M)
A. Companies Act 2013
B. Securities (Contract) Regulation Act,1952
C. Securities and Exchange Board of India,1992
D. A and B
E. All of the above
Answer: Option E
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Q.9)Which of the following cases will be acted upon based on Section 38,Companies
Act,2013?(1 M)
A. A person fraudulently inducing persons to invest money in securities.
B. A person making an application in a fictitious name.
C. Mis-Statements in the prospectus.
D. A and C
E. All of the above
Answer: Option B
Q.10) Variation of the terms of contract or objects in prospectus is mentioned in which of
the following sections of Companies Act,2013?(1 M)
A. Section 27
B. Section 25
C. Section 29
D. Section 32
E. Section 39
Answer: Option A
Q.11)According to Section 43 of Companies Act,2013 ,How many types of share capital
exists?(1M)
A. 2
B. 3
C. 4
D. 5
Answer: Option A
Q.12) Which of the following Section of the Companies Act,2013 mentions about the
voting rights of themembers?(1 M)
A. Section 47
B. Section 45
C. Section 46
D. Section 49
E. Section 50
Answer: Option A
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Q.13) Which of the following is incorrect with respect to shares with differential
rights?(1M)
A. They are a issued as a part of preferential shares.
B. Companies (share capital and debenture) rules 2014,mention the condition for issue
of shares with differential voting rights.
C. It cannot exceed 26% of the total post issue paid up capital.
D. A and C
E. All of the above
Answer: Option D
Q.14) Preference shareholders have the right to vote in which of the following cases?(1 M)
A. On every resolution of the company.
B. Resolutions which affect their rights.
C. Resolution for winding up of the company.
D. A and B.
E. B and C
Answer: Option E
Q.15) According to Section 48 of Companies Act,2013, the rights attached to the shares of
any class can be varied with the consent of ___ of the shareholders of that class? (1 M)
A. 1/3rd
B. 1/2
C. 1/4th
D. 3/4th
Answer: Option D
Q.16) Company can issue shares at premium under which of the following sections of
Companies Act,2013?(1 M)
A. Section 50
B. Section 49.
C. Section 51.
D. Section 52
E. Section 53
Answer - D
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Q.17) Sweat Equity Shares can be issued to which of the following employees?(2 M)
A. A permanent employee of the company who is working in India.
B. A permanent employee of the company who is working outside India.
C. A director of the company working in the subsidiary of the holding company.
D. A director of the company working outside India.
E. All of the above
Answer: Option E
Q.18) In case of a unlisted startup company, the sweat equity share should not increase
more than ____ of paid up capital up to 5 years from the date of incorporation?(1 M)
A. 30%
B. 35%
C. 40%
D. 45%
E. 50%
Answer: Option E
Q.19)CRR is mentioned in Companies Act 2013.What does CRR stand for?(1 M)
A. Current Redemption Reserve.
B. Cash Reserve Ratio
C. Capital Redemption Reserve
D. Cash Redeemable Reserve
E. Capital Reserve Redemption
Answer: Option C
Q.20) Which section of companies act mentions about the transfer and transmission of
shares?(1 M)
A. Section 52
B. Section 53
C. Section 54
D. Section 55
E. Section 56
Answer: Option E
Q.21)Which of the following is the new category of company introduced in Companies Act
2013?(1M)
A. Public Private Partnership
B. Two Person Company
C. Limited Liability Partnership
D. One Person Company
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Answer: Option D
Q.22) Which among the following is type of share issued to existing shareholders to
increase its subscribed share capital?(1M)
A. Bonus Shares
B. ESOP
C. Right Issue
D. Preference Shares
Q.23) Which of the following alterations of share capital requires the approval of
NCLT(National Company Law Tribunal)?(1 M)
A. Increase of authorized share capital.
B. Consolidation and division all or any share capital which results in increase in voting
percentage of shareholders.
C. Conversion of all or any of the fully paid-up shares into stock.
D. Cancellation of shares.
E. Sub-division of shares or any of them into smaller amount.
Answer: Option B
Q.24) Section 62 ,Companies Act 2013 mentions about further issue of share capital is
applicable to which of the following companies?(1 M)
A. Private Companies.
B. Public Companies.
C. Listed Companies.
D. Unlisted Companies
E. All of the above
Answer: Option E
Q.25) Which of the following section of Companies Act,2013 deals with bonus shares ?
(1M)
A. Section 45
B. Section 52
C. Section 59
D. Section 63
Answer: Option D
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Q.26) Bonus shares shall be issued from which of the following reserves?(1 M)
A. Capitalizing reserves created by revaluation of assets.
B. Capital Redemption Reserve Account
C. Free Reserves
D. B and C
E. All of the above
Answer: Option D
Q.27) Buyback means repurchase by a company of its own shares. Which of the following
is correct with respect to buy back shares?(2 M)
A. It is exercised to increase the number of shares of a company.
B. It eliminates the threats from shareholders who may be looking for a controlling
stake.
C. A company cannot buy back its equity shares.
D. A and B.
E. B and C
Answer: Option B
Q.28) Which of the following are incorrect with respect to debentures?(1 M)
A. A company may issue debentures with an option to be converted into shares
wholly or partly.
B. It can be issued with or without voting rights.
C. A company cannot issue debentures to more than 500 people without appointing
a debenture trustee.
D. A and C
E. B and C
Answer: Option B
Q.29)The power to look into issues of capital reduction of a company vests with which of
the following organization?(1 M)
A. High courts and appeal with Supreme court.
B. Supreme Court
C. NCLT
D. SEBI
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Q.30) As per Companies Act 2013, what is maximum tenure of preference shares except
for infrastructure projects?
A. 20 years
B. 15 years
C. 10 years
D. 5 years
E. 25 years
Answer: Option A
Q.31)Declaration of Dividend is mentioned in which of the following Sections of Company
Act 2013?(1M)
A. Section 120
B. Section 121
C. Section 122
D. Section 123
E. Section 125
Answer: Option D
Q.32) Which among the following is correct with respect to Interim Dividend?(1M)
A. It is declared during Annual General Meeting.
B. It is recommended by the Directors and approved by the Share Holders.
C. An interim dividend is typically one of two dividends given out by a company that is
providing shareholders with income on a semi-annual basis.
D. A and B
E. B and C
Answer: Option E
Q.33) As per the Companies Act, which of the following are the sources of the dividend?(1
M)
A. Current years Profit of the Company
B. Undistributed or Accumulated Profits of the previous years.
C. Free Reserves
D. A and B.
E. All of the above
Answer: Option E
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Q.34) As per the Companies Act, 2013, declaration of dividends can be declared out of
surplus reserves on which of the following conditions ?(1 M)
A. The amount of declared dividend can’t be more than that of an average rate of
dividends which was declared in past 2 years.
B. The amount drawn from the reserves shall not exceed the amount which is equal to
1/10th of the sum paid up capital and free reserves.
C. The remaining balance of the reserve shall not fall below 20% of the paid up capital.
D. B and C.
E. A and C
Answer: Option B
Q.35) Appointment of 1st Auditor in case of government company is made within______
days from the date of registration ? (1 M)
A. 15 days
B. 30 days
C. 45 days
D. 60 days
Answer: Option D
Q.36) The amount in the Unpaid Dividend Account of companies can be transferred to the
Fund Investor Education and Protection Fund if it remains unpaid or unclaimed for a
period of _____ years?(1M)
A. 4
B. 5
C. 6
D. 7
E. 8
Answer: Option D
Q.37) What is the procedure for removal of an auditor before the expiry of the term?(2 M)
A. An ordinary resolution by the board of Directors of the Company.
B. An ordinary resolution by the Shareholders of the Company..
C. Special resolution with the approval by the Central Government
D. An ordinary resolution by SEBI .
E. None of the above.
Answer: Option C
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Q.38) According to provisions of Companies Act, 2013 an individual auditor cannot be
appointed for more than ____ consecutive years?
A. 4
B. 5
C. 6
D. 7
E. 8
Answer: Option B
Q.39)Which of the following is responsible for prescribing the standards of auditing
according to Section 143(10) of Companies Act?(1 M)
A. Central Government
B. National Financial Reporting Authority
C. Institute of chartered Accountants of India
D. B and C
E. A and B
Answer: Option A
Q.40) Which of the following situations is considered as the casual vacancy in case of the
post of an auditor?(1M)
A. Vacancy caused by Death
B. Vacancy caused by Disqualification
C. Vacancy caused by expiry of term
D. A and B
E. All of the above
Answer: Option D
Q41 ) Dividend is :
A. A part of distribute profits
B. Payable to the shareholders whenever declared
C. In proportion to the shareholding
D. Interest receivable by the shareholders from the company
E. All of the above
Answer – E
Q42) which are the types of dividend
A. Interim Dividend
B. Final Dividend
C. Directors Dividend
D. A&B
E. All
76 | P a g e
Answer – D
Q43) What is the term of office of the 1st auditor ?
A. 1 year
B. 2 year
C. 3 year
D. 5 year
E. 7 year
Answer – D
Q44) for which of the below companies, the formation of audit committee is mandatory ?
A. Listed companies
B. Public companies
C. Public companies with a paid up capital of twelve crore rupees
D. A&B
E. All
Answer – E
Q45) who appoints 1st auditor of a public company ?
A. Board Of Directors
B. Central Government
C. C & AG
D. SEBI
E. MCA
Answer – A
Q46) who recommends the auditors in case of a company which is required to constitute
an Audit Committee Under section 177 ?
A. Audit committee
B. Board of directors
C. SEBI
D. Shareholders
E. Central Government
Answer – A
Q47) which of the below companies can re – appoint auditor after 5th consecutive year ?
A. Listed Company
B. One Person Company
C. Small Company
D. B&C
E. All the above
77 | P a g e
Answer – D
Q48) Equity shares with Differential rights means :
A. Differential rights as to dividends
B. Differential rights as to voting
C. Others rights as prescribed by the Act
D. A&B
E. All
Answer – E
Q49) A prospectus issued in the form of advertisement must state :
A. The objects for which the company has been formed
B. The liability of members
C. The amount of share capital of company
D. Registered Company Office address
E. All
Answer – E
Q50) A private company can issue securities in :
A. Dematerialised form
B. Physical form
C. Handwritten form only
D. A&C
E. Any of the above
Answer – E
Q51)shelf prospectus remains valid up to _____
A. 6 months
B. 10 months
C. 12 months
D. 15 months
E. 18 months
Answer - C
78 | P a g e
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Commerce & Accountancy

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