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Common University Entrance Test (UG)

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Question : Case Study 83: Innovate Tech 

Innovate Tech is facing challenges in implementing delegation effectively due to a lack of clear communication channels. What could be a potential consequence of inadequate communication in delegation?

 

Option 1: Enhanced accountability among employees

Option 2: Increased employee motivation

Option 3: Misunderstandings and errors in decision-making

Option 4: Reduced centralization of authority

Team Careers360 26th Jan, 2024

Correct Answer: Misunderstandings and errors in decision-making


Solution : The correct answer is (c) Misunderstandings and errors in decision-making

Inadequate communication in delegation can lead to misunderstandings regarding tasks, responsibilities, expectations, and authority. This lack of clarity can result in errors in decision-making, as individuals may not fully grasp their roles and responsibilities. Misinterpretation of instructions and objectives can lead to suboptimal decisions and actions, potentially impacting organizational efficiency and outcomes. It may hinder effective delegation, impairing the intended benefits and goals. It does not lead to enhanced accountability, increased employee motivation, or reduced centralization of authority but rather to confusion and potential errors.

8 Views

Question : Case Study 75

ABC Corporation is a well-known company with its shares listed on a stock exchange. The company's management is reviewing the concept of dematerialization.

Question : 

What is the primary advantage of dematerialization for investors?

Option 1: Lower brokerage fees
 

Option 2: Increased dividend payouts
 

Option 3: Enhanced voting rights

 

Option 4: Higher interest rates

Team Careers360 27th Jan, 2024

Correct Answer: Lower brokerage fees
 


Solution : The correct answer is (a) Lower brokerage fees

The primary advantage of dematerialization for investors is lower brokerage fees. Dematerialization is the process of converting physical share certificates into electronic form, enabling shares to be held in demat accounts. With shares in dematerialized form, investors experience cost savings in terms of lower brokerage fees for trading and transactions. Handling electronic transactions is more efficient and cost-effective compared to managing physical share certificates, leading to reduced brokerage charges for investors. This has been one of the key benefits of dematerialization in modern securities trading.

12 Views

Question : The forts of Vijayanagar were analyzed by historians for their:

Option 1: Aesthetic appeal

Option 2: Architectural innovation

Option 3: Strategic locations

Option 4: Religious significance

Team Careers360 27th Jan, 2024

Correct Answer: Strategic locations


Solution : Correct Option: 3
Explanation: Historians have analyzed the forts of Vijayanagar for their strategic locations, which were chosen to provide natural defenses and control key trade routes.

3 Views

Question : A written contract of employment is made between the employer and the candidate. Which selection process is highlighted in Contract of Employment happens between 

Option 1: Selection tests

Option 2: Medical examination 

Option 3: Contract of employment 

Option 4: Selection decision

 

Team Careers360 26th Jan, 2024

Correct Answer: Contract of employment 


Solution : After the candidate accepts the job offer a written contract of employment is made between the employer and the candidate the contract is known as the contract of employment. 

Hence, option C is correct.

146 Views

Question : Assertion (A): A firm can have a minimum of 2 with a maximum of 50 Partners.

Reason (R): The limit of two Partners flows from the definition in the Partnership Act 1932; the Maximum limit of Partners is also prescribed in the Partnership Act 1932.

Option 1: Only assertion(A) is correct

Option 2: Only reason(R) is correct

Option 3: Assertion (A) is correct but Reason (R) is not correct.

Option 4: Both assertion(A) and reason(R) are correct

Team Careers360 26th Jan, 2024

Correct Answer: Assertion (A) is correct but Reason (R) is not correct.


Solution : Answer = Assertion (A) is correct, but Reason (R) is not correct.

The assertion correctly states that a partnership firm can have a minimum of two partners, which is prescribed by the Partnership Act 1932. However, the reason incorrectly suggests that the maximum limit of partners is also prescribed in the same act. In reality, there is no maximum limit on the number of partners specified in the Partnership Act 1932. Therefore, assertion (A) stands true on its merit, but reason (R) is incorrect.
Hence, the correct option is 3.

42 Views

Question : At the time of change in profit sharing ratio Sacrificing partner is ------ and gaining partner is ----- for the adjustment  of goodwill.

Option 1:  Credited, debited 

Option 2: Debited, credited 

Option 3: Debited, debited

Option 4: Credited, credited

Team Careers360 27th Jan, 2024

Correct Answer:  Credited, debited 


Solution : Answer =  Credited, debited 

When there's a change in profit-sharing ratio, the sacrificing partner's capital decreases, so they are credited. The gaining partner's capital increases, so they are debited. This adjustment reflects the redistribution of goodwill.
Hence, the correct option is 1.

18 Views

Question : Case Study 6:

IJK Retail is a chain of retail stores. The company aims to maintain consistent customer service standards across all its outlets.

Question:

What would be the first step for IJK Retail in the process of controlling?

Option 1: Setting customer service standards.

Option 2: Measuring customer satisfaction.

Option 3: Comparing sales data with targets.

Option 4: Taking corrective action.

Team Careers360 27th Jan, 2024

Correct Answer: Setting customer service standards.


Solution : The correct answer is (a) Setting customer service standards.

The first step for IJK Retail in the process of controlling would be to set customer service standards. This involves defining clear and specific expectations for the level of customer service that the company aims to provide across all its retail outlets. These standards serve as benchmarks against which actual performance can be measured and evaluated. Once the standards are established, IJK Retail can then proceed with the subsequent steps of the controlling process, including measuring customer satisfaction, comparing performance to standards, and taking corrective action if necessary.

13 Views

Question : Assertion-Reason Questions: Chapter - Sources of Business Finance

Questions : Equity Shares and Preference Shares

Assertion: Equity shares provide higher returns to shareholders due to the absence of fixed dividend obligations.

Reason: Equity shareholders receive preferential treatment in dividend distribution.

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: Both assertion and reason are false.

Team Careers360 27th Jan, 2024

Correct Answer: Assertion is true, but the reason is false.

    


Solution : The correct answer is (c) Assertion is true, but the reason is false.

Equity shares do not have any fixed dividend obligations. This means that companies are not obligated to pay dividends to equity shareholders. However, if a company does decide to pay dividends, equity shareholders are typically the last group of shareholders to receive dividends. This is because preference shareholders have a preferential right to receive dividends.

Despite the fact that equity shareholders receive dividends after preference shareholders, equity shares still have the potential to provide higher returns to shareholders. This is because equity shareholders have the potential to benefit from capital appreciation. Capital appreciation is the increase in the price of a company's stock.

The reason for the assertion is false because equity shareholders do not receive preferential treatment in dividend distribution. In fact, equity shareholders are typically the last group of shareholders to receive dividends, if at all.

The assertion is true because equity shares have the potential to provide higher returns to shareholders due to the absence of fixed dividend obligations. This means that companies are not obligated to pay dividends to equity shareholders, which frees up more cash that can be reinvested in the business or used to pay down debt. This can lead to higher growth and profitability, which can ultimately lead to higher stock prices and higher returns for equity shareholders.

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