Common University Entrance Test (UG)
Question : Assertion: Investment in human capital improves individual earning potential.
Reason: Highly educated and skilled individuals are more likely to secure higher-paying jobs.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: Assertion is true, but the reason is false.
Option 4: Assertion is false, but the reason is true.
Correct Answer: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Solution : The correct answer is (a) Both assertion and reason are true, and the reason is the correct explanation of the assertion.
The assertion states that investment in human capital improves individual earning potential. Human capital refers to the knowledge, skills, and abilities possessed by individuals. The reason provided is that highly educated and skilled individuals are more likely to secure higher-paying jobs. This is true because individuals with higher levels of education and specialized skills often have a competitive advantage in the job market. They possess the qualifications and expertise that are in demand by employers, which can lead to higher-paying job opportunities. Therefore, both the assertion and the reason are true, and the reason correctly explains the assertion.
Question : Choose the correct form of adjective for the given sentence:
The woman whom we saw at the party is the ………. sister of Sohan.
Option 1: eldest
Option 2: elder
Option 3: older
Option 4: oldest
Correct Answer: eldest
Solution : The correct answer is option 1.
The woman whom we saw at the party is the eldest sister of Sohan.
Explanation:
- The article "the" comes before a superlative degree if one thing is chosen from "more than two" or "all." .The adjective "eldest" will be the appropriate choice in this context because the definite article "the" comes before the given blank.
Eldest means one among a group of individuals who are related or otherwise connected of the greatest age.
Question : Case Study 4:
PQR Ltd. is a startup in the renewable energy sector looking to raise capital for its ambitious project.
Question :
PQR Ltd. is considering issuing bonds with a fixed interest rate and a maturity period of five years. What type of bonds are these?
Option 1: Convertible bonds
Option 2: Floating-rate bonds
Option 3: Zero-coupon bonds
Option 4: Corporate bonds
Correct Answer: Corporate bonds
Solution : The correct answer is (d) Corporate bonds
The type of bonds described, with a fixed interest rate and a maturity period of five years, are typically referred to as corporate bonds. Corporate bonds are debt securities issued by corporations to raise capital. They pay a fixed interest rate (coupon) to bondholders over a specified period until maturity when the principal amount is repaid.
Question : On dissolution, goodwill account is transferred to :
Option 1: the Capital Accounts of Partners
Option 2: On the credit of Cash Account
Option 3: On the Debit of Realisation Account
Option 4: On the Credit of Realisation Account
Correct Answer: On the Debit of Realisation Account
Solution : All of the Firm's assets that can be sold for cash are moved to the Realization Account. Goodwill is regarded like any other asset and moved to the debit of Realization Account at the value stated in the Balance Sheet if it already appears there.
Hence the Correct answer is option 3.
Question : The ratio of Current Assets (Rs.16,00,000) to Current Liabilities (Rs.10,00,000) is 1.6: 1. The accountant of the firm is interested in maintaining a Current Ratio of 2: 1, by paying off a part of the Current Liabilities. The amount of the Current Liabilities will be that should be paid, so that the Current Ratio at the level 2: 1 may be maintained.
Option 1: Rs 4,00,000
Option 2: Rs 5,00,000
Option 3: Rs 8,00,000
Option 4: Rs 10,00,000
Correct Answer: Rs 4,00,000
Solution : Answer = Rs 4,00,000
C. Assets = 16,00,000
C. liab = 10,00,000
C.Ratio =1.6:1
Let the amount of the current liab should be paid = $x$
$\frac{16,00,000-x}{10,00,000-x}$ = $\frac{2}{1}$
16,00,000-$x$ = 20,00,000 - 2$x$
$x$ = 4,00,000
C. liab should be paid = Rs. 4,00,000 Hence, the correct option is 1.
Question : The distinctive feature of the Vijayanagar architectural style is the:
Option 1: Use of blue tiles
Option 2: Incorporation of large domes
Option 3: Extensive use of pillars
Option 4: Predominance of wooden structures
Correct Answer: Extensive use of pillars
Solution : Correct Option: 3 Explanation: The distinctive feature of the Vijayanagar architectural style is the extensive use of pillars, which are a prominent element in the construction of temples and other structures in the region.
Question : Match List-I with List-II.
List-I
(Items of cash flow)
List-II
(Type of activity)
(A)
Purchase of tangible assets
(I) Operating activity
(B)
Issue of shares
(II) Cash and cash equivalents
(C)
Increase in current assets
(III) Investing activity
(D)
Marketable securities
(IV) Financing activity
Choose the correct answer from the options given below:
Option 1: (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
Option 2: (A) - (I), (B) - (III), (C) - (II), (D) - (IV)
Option 3: (A) - (I), (B) - (II), (C) - (IV), (D) - (III)
Option 4: (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Correct Answer: (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Solution : Operating activity is the principal revenue producing activity of an enterprise. Investing activities relate to purchase and sale of long-term assets or fixed assets such as machinery, furniture, land and building, etc. Financing activities are associated with capital or long-term funds of the firm, and the financing activities bring about change in capital and borrowed funds. Purchase of tangible assets is related to the outflow of cash under investing activity. Issue of shares represents financing activity. Change inassets or liabilities represents operating activity. Marketable securities represent cash and cash equivalents.(A)-(III), (B)-(IV), (C)-(I), (D)-(II)
Question : When income rises from Rs. 5000 to Rs. 6000, savings rises by Rs. 600. Find MPC.
Option 1: 0.6
Option 2: 0.4
Option 3: 0.7
Option 4: None of the above.
Correct Answer: 0.4
Solution :
Question : Case Study: PQR Software Solutions
The next step PQR Software Solutions should take after identifying various courses of action is:
Option 1: Selecting an alternative
Option 2: Developing premises
Option 3: Setting objectives and goals
Option 4: Allocating resources
Correct Answer: Selecting an alternative
Solution : The correct answer is (a). Selecting an alternative
Once PQR Software Solutions has identified and evaluated various courses of action for the new customer support system, the next logical step is to select the most suitable alternative. Selecting an alternative involves making a decision on which option aligns best with the company's objectives and goals. After selecting the alternative, the company can then proceed with developing premises, setting specific objectives and goals, and allocating resources as part of the detailed planning process for implementing the chosen course of action.
Question : The Integrated Rural Development Program (IRDP) was launched in India during the:
Option 1: First Five-Year Plan
Option 2: Fourth Five-Year Plan
Option 3: Sixth Five-Year Plan
Option 4: Ninth Five-Year Plan
Correct Answer: Sixth Five-Year Plan
Solution : The correct answer is (c) Sixth Five-Year Plan.
The Integrated Rural Development Program (IRDP) was introduced in 1978 as a centrally-sponsored poverty alleviation program in India. It aimed to provide financial assistance and self-employment opportunities to the rural poor, particularly those below the poverty line, to enhance their income and improve their overall quality of life.
The IRDP was implemented through various measures such as providing subsidized loans, training, and technical support for income-generating activities, as well as facilitating access to essential inputs and resources for rural development. The program was designed to address the multifaceted dimensions of rural poverty and promote integrated development at the grassroots level. It's important to note that the IRDP was launched during the Sixth Five-Year Plan, which covered the period from 1980 to 1985.
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