Common University Entrance Test (UG)
Question : Assertion: Factors affecting physical distribution include transportation, warehousing, and inventory management.
Reason: Physical distribution has no role in improving supply chain efficiency and customer satisfaction.
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: Assertion is true, but the reason is false.
Solution : The correct answer is (c) Assertion is true, but the reason is false.
The assertion is true. Factors affecting physical distribution indeed include transportation, warehousing, and inventory management. These elements are fundamental aspects of physical distribution in the supply chain.
The reason is false. Physical distribution plays a significant role in improving supply chain efficiency and customer satisfaction. Efficient transportation, effective warehousing, and optimized inventory management are key components of a well-functioning supply chain. When physical distribution is managed effectively, it can lead to improved supply chain efficiency by reducing costs, minimizing delays, and enhancing overall operational efficiency. Additionally, it directly impacts customer satisfaction by ensuring timely delivery, accurate order fulfillment, and product availability. Therefore, the reason is not a correct explanation of the assertion.
Question : Claim received against damage of fixed assets say because of an earthquake is an example of ____________.
Option 1: Extraordinary items of Operating activities
Option 2: Extraordinary items of Investing Activities
Option 3: Extraordinary items of financing Activities
Option 4: None of the above
Correct Answer: Extraordinary items of Investing Activities
Solution : Answer = Extraordinary items of Investing Activities
Claim received against damage of fixed assets because of an earthquake is an example of extraordinary items because Extraordinary items are incomes and expenses that arise from events or transactions that are clearly distinct from the ordinary business activities of the enterprise. Hence, the correct option is 2.
Question : A stock split involves:
Option 1: Issuing additional shares to existing shareholders
Option 2: Combining multiple stocks into a single share
Option 3: Converting stocks into bonds
Option 4: Trading stocks on multiple exchanges
Correct Answer: Issuing additional shares to existing shareholders
Solution : The correct answer is (a) Issuing additional shares to existing shareholders.
A stock split involves the issuing of additional shares to existing shareholders of a company. In a stock split, the total number of outstanding shares of a company is increased, and the share price is adjusted accordingly.The purpose of a stock split is to increase the liquidity and affordability of the company's shares. By increasing the number of shares, the price per share decreases, making the shares more accessible to a broader range of investors. The overall market capitalization of the company remains the same before and after the stock split.
Question : Case Study 6:
DEF Ltd. is a startup in the fashion industry that wants to raise funds for launching its new line of products.
Question :
DEF Ltd. is planning to issue shares to the public to raise capital. Which market activity is associated with this process?
Option 1: Treasury bill trading
Option 2: Secondary market trading
Option 3: IPO (Initial Public Offering)
Option 4: Commercial paper issuance
Correct Answer: IPO (Initial Public Offering)
Solution : The correct answer is (c) IPO (Initial Public Offering)
When DEF Ltd. plans to issue shares to the public to raise capital, this process is associated with an Initial Public Offering (IPO). An IPO is the initial sale of a company's shares to the public, making it available for purchase on a stock exchange for the first time. DEF Ltd. would go through this process to raise the necessary capital for launching its new line of products. In an IPO, the company offers a portion of its ownership to the public, allowing investors to buy shares and become partial owners of the company. The funds raised from the IPO are used to finance the company's growth, product development, expansion, or other business objectives.
Question : Statement 1: Selling concept focuses on building long-term customer loyalty through value creation.
Statement 2: Marketing concept solely relies on aggressive advertising for sales.
Option 1: Both statements are correct.
Option 2: Statement 1 is correct, and statement 2 is false.
Option 3: Both statements are incorrect.
Option 4: Statement 2 is correct, and statement 1 is incorrect.
Correct Answer: Both statements are incorrect.
Solution : The correct answer is (c) Both statements are incorrect.
Statement 1 is incorrect. The selling concept primarily focuses on short-term sales and transactions rather than building long-term customer loyalty. It often involves aggressive sales tactics to close deals.
Statement 2 is false. The marketing concept does not solely rely on aggressive advertising for sales. The marketing concept involves understanding customer needs, creating valuable products or services, and effectively promoting them, considering a holistic approach to meet both customer satisfaction and business goals.
Therefore, statement 1 is incorrect, and statement 2 is false.
Question : A firm earned average profit of Rs.45.000. Rate of return on capital employed is 12% p.a. Total capital employed is Rs.4,00,000. Goodwill on the basis of two years purchase of super profit is:
Option 1: Rs.6,000
Option 2: Rs.12,000
Option 3: Rs.18,000
Option 4: None of these
Correct Answer: None of these
Solution : Normal Profit = Capital employed X Normal rate of return = Rs.4,00,000 X 12% = Rs.48,000. Super Profit = Average Profit - Normal Profit = Rs.45,000 - Rs.48,000 = (Rs.3,000) Goodwill = Super Profit X Number of years purchase = (Rs.3,000) X 2 = (Rs.6,000). Hence, the correct option is 4.
Question : Read the passage given below and answer the questions. A national sports team was winning all the competitions and was extremely admired for its hard work An interview with the national team to discover and explore the ins and outs for its constant success emphasized the following details. As per the report, the team had many fresh players who were well prepared accountable, self-disciplined and accurate in their job and contributed to the achievement of the team. The captain had been carefully chosen by the team fellows themselves, and he was most cooperative, friendly and positive on the ground as well as off it. This made him a good leader. The best part of the team was that, all its senior players were supportive and helpful with their juniors and were always eager to listen to them. The team's coach stated few essential components that had contributed to the team's achievement. According to him, the ability to inspire and encourage individuals plays a critical role in the team's achievements more often than the technical skills, and this is what divides a good coach from an average one. The coach also referred to occasions when players went through the period of lack of intrinsic motivation. The coach realized that while there are some players have an instinctive drive to regularly strive for success and enjoy their task, there are others who seem to lack internal motivation and need extrinsic factors like rewards, prize, money etc, to create the required drive or required behavior. The team's psychologist spoke about the aggressive behavior among the team players against the opponents. It was interesting to listen to various occurrences where the players had instigated opponents or charged at them aggressively, in anger, but had later tried to defend their actions. Occasionally, players were found to be abusing opponents not in anger, but to get a benefit or for the sake of winning, though this behavior is not adequate and they were given punishments as per the code of conduct and rules of sports.
Question:
According to coach, some players had an instinctive drive to regularly strive for success and enjoy their task. Where as, others who seem to lack internal motivation and need________ to create the required drive.
Option 1: Rewards, prize money
Option 2: A motivational talk from the coach
Option 3: Good suggestions from the seniors
Option 4: A consultation from the psychologist
Correct Answer: Rewards, prize money
Solution : The coach realised that while some players have an instinctive drive to regularly strive for success and enjoy their tasks, others seem to lack internal motivation and need extrinsic factors like rewards, prize money etc. to create the required drive or required behaviour.
Question : The interest payments as per the government budget during a year was Rs. 130000 crore If total borrowings of the government are estimated as Rs. 300000 crore, then how much is primary deficit.
Option 1: 270000
Option 2: 130000
Option 3: 160000
Option 4: 170000
Correct Answer: 170000
Solution : Primary deficit= Fiscal deficit - interest payments Primary deficit= 300000-130000 Primary deficit= Rs. 170000 crore. Hence, Option D is correct.
Question : In counseling, the use of silence can be effective for:
Option 1: Punishing the client
Option 2: Giving the counselor time to think
Option 3: Allowing the client to reflect and process their thoughts
Option 4: Ending the session early
Correct Answer: Allowing the client to reflect and process their thoughts
Solution : In counseling, the use of silence can be effective for allowing the client to reflect and process their thoughts, providing space for introspection and emotional expression.
Question : Fill in the blank with the suitable word from the options which are mentioned below:
The little boy ate his breakfast __.
Option 1: himself
Option 2: him
Option 3: his
Option 4: he
Correct Answer: himself
Solution : The correct answer is option 1.
Explanation:
Himself is a reflexive pronoun.
Reflexive refers to something that is focused on oneself. It follows that the same thing should be expected of a reflexive pronoun. It reflects the pronoun back to us.
In a sentence, it stands in for both the subject and the object pronouns.
"A reflexive pronoun is a pronoun that refers back to the sentence's or clause's subject, like 'himself.'
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