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UGC NET-COMMERCE
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COPYRIGHT

The Copyright Act, 1957 came into effect from January 1958. This Act has been amended five times since then,
i.e., in 1983, 1984, 1992, 1994, 1999 and 2012. The Copyright (Amendment) Act, 2012 is the most substantial.
The main reasons for amendments to the Copyright Act, 1957 include to bring the Act in conformity with WCT
and WPPT; to protect the Music and Film Industry and address its concerns; to address the concerns of the
physically disabled and to protect the interests of the author of any work; Incidental changes; to remove
operational facilities; and enforcement of rights. Some of the important amendments to the Copyright Act in
2012 are extension of copyright protection in the digital environment such as penalties for circumvention of
technological protection measures and rights management information, and liability of internet service
provider and introduction of statutory licences for cover versions and broadcasting organizations; ensuring
right to receive royalties for authors, and music composers, exclusive economic and moral rights to
performers, equal membership rights in copyright societies for authors and other right owners and exception
of copyrights for physically disabled to access any works.

Prior to the Act of 1957, the Law of Copyrights in the country was governed by the Copyright Act of 1914. This
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Act was essentially the extension of the British Copyright Act, 1911 to India. Even the Copyright Act, 1957
borrowed extensively from the new Copyright Act of the United Kingdom of 1956. The Copyright Act, 1957
continues with the common law traditions. Developments elsewhere have brought about certain degree of
convergence in copyright regimes in the developed world.

The Indian Copyright Act today is compliant with most international conventions and treaties in the field of
copyrights. India is a member of the Berne Convention of 1886 (as modified at Paris in 1971), the Universal
Copyright Convention of 1951 and the Agreement on Trade Related Aspects of Intellectual Property Rights
(TRIPS) Agreement of 1995. Though India is not a member of the Rome Convention of 1961, the Copyright Act,
1957 is fully compliant with the Rome Convention provisions.
HILAL AHMAD:

The two Internet Treaties were negotiated in 1996 under the auspices of the World Intellectual Property
Organization (WIPO). These treaties are called the ‘WIPO Copyrights Treaty (WCT)’ and the ‘WIPO
Performances and Phonograms Treaty (WPPT)’. These treaties were negotiated essentially to provide for
protection of the rights of copyright holders, performers and producers of phonograms in the Internet and
digital era. India is not a member of these treaties; amendments are being mooted to make Act in compliant
with the above treaties in order to provide protection to copyright in the digital era. Though India is not a
member of the WCT and the WPPT, the Copyright Act, 1957 is fully compliant with the Rome Convention
provisions. The provisions of the Act is also in harmony with two other new WIPO treaties namely, the Beijing
Audiovisual Performers treaty, 2012 and the Marrakesh Treaty to Facilitate Access to Published Works by
Visually Impaired or Otherwise Print Disabled Persons, 2013.

The Copyright Rules, 2013 was notified on 14 March, 2013 replacing the old Copyright Rules, 1958. The Rules,
inter alia, provide for procedure for relinquishment of Copyright; grant of compulsory licences in the matter of
work withheld from public; to publish or republish works (in certain circumstances); to produce and publish a
translation of a literary or dramatic work in any language; licence for benefit of disabled; grant statutory
licence for cover versions; grant of statutory licence for broadcasting literary and musical works and sound
recordings; registration of copyright societies and copyright registration.
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PREFACE
I am glad indeed to place this title MCQ NTA COMMERCE 4ND EDITION in the hands of those students who are
preparing for UGC NTA exam.

This book is written strictly according to the prescribed according to the new syllabus. In preparing this book, I
have freely drawn the material both from the books of Indian & foreign authors.

The book is divided into 12 units.

I request every teacher and the taught to bring such mistakes to the notice of the author so that they can be
redressed in the next edition.

I welcome every constructive suggestion that goes in improving the quality of the work and the utility of the
book.
WHATSAPP = 9906837425

2022
Srinagar-J&K

190001
HILAL AHMAD:

HILAL AHMAD
(B.COM/M.COM (net)/PGDBA)
[email protected]
9906837425/7006246674
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https://www.youtube.com/channel/ HILAL AHMED

9906837425
WHATSAPP = 9906837425

Cell: 7006246674
HILAL AHMAD:

15,000
MCQs
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CONTENTS
UNIT-1 BUSINESS ENVIRONMENT
UNIT-2 INTERNATIONAL BUSINESS
UNIT-3 ACCOUNTING & AUDITING
UNIT-4 BUSINESS ECONOMICS
UNIT-5 BUSINESS FINANCE
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UNIT-6 BUSINESS STATISTICS

UNIT-7 BUSINESS MANAGEMENT
UNIT-8 HUMAN RESOURCE
MANAGEMENT
HILAL AHMAD:

UNIT-9 BANKING & FINANCIAL

INSTITUTIONS
UNIT-10 MARKETING MANAGEMENT
UNIT-11 LEGAL ASPECTS OF BUSINESS
UNIT-12 INCOME TAX LAW & PLANNING
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UNIT-1
BUSINESS ENVIREONMENT
1. From the following statements of Assertion (A) and Reasoning, indicate the correct code
Assertion (A): Industrial liberalization became an imperative condition for the growth of forces of competition
leading to high efficiency and productivity in indian industries.
Reason ®: Industrial development and curbing of poverty os only possible through government interventions.
Codes:

1. (A) and ® both are not correct

2. (A) is correct but ® is not the correct explanation of (A)
3. (A) is correct and ® is correct explanation of (A)
4. (A) is not correct but ® is correct.
Answer: 2

2. Which of the following statement are not correct?

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Statement (I): Sustainable development means an attempt to achieve the balance between economic growth and
conservation or protection of environment.
Statement (II): sustainable development means meeting the needs of industries without compromising the needs of
import export balancing.
Statement (III): Sustainable development means creation of sufficient surplus budgets through stock of capital assets
including land.
Codes:
1. Statement (I) and (III)
2. Statement (II) and (III)
3. Statement (I) and (II)
4. Statement (I) (II) (III)
Answer: 2
HILAL AHMAD:

3. Match items of list I with list II relating to macro environment of business and indicate the code of correct
matching:
List-I list-II
a. Economic environment (i) ethical issues
b. Political and government (ii) trade and transport policies environment
c. Socio culture environment (iii) economic stratification of population
d. Domegraphic environment (iv) judiciary powers
Codes: (a) (b) (c) (d)

(1) (ii) (iv) (i) (iii)

(2) (i) (iii) (ii) (iv)
(3) (iv) (ii) (iii) (i)
(4) (iii) (i) (iv) (ii)
Answer: 1
4. For which one of the basic reason, the “structure adjustment programme” was undertaken in India in 1991?
1. Curbing competition among private sector.
2. Establishing predominant role of public sector
3. Establishing a free market economy
4. Regional balancing through planning and licensing
Answer: 3

5. Match the items of List-I with list –II and indicate the correct code of matching:
6

List-I List:II
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a. Micro external environment (i) economic and political factors

b. Macro external environment (ii) competition among diverse product targeting disposable
income of consumers
 7|Pa g e UGC NET-COMMERCE SESSION-2022

c. Non-price competition (iii) input suppliers

d. Desire competition (iv) sponsoring of events like sports
Codes: (a) (b) (c) (d)
1. (iii) (i) (iv) (ii)
2. (ii) (iii) (iv) (i)
3. (iv) (ii) (iii) (i)
4. (iv) (i) (ii) (iii)
Answer: 1

6. Assertion (A): Buyers for several industries, are potential competitors they may integrate backwards.
Reasoning ®: they have different degrees of bargaining power.
Codes:

1. (A) and ® are correcr ® is the correct explanation of (A)

2. (A) and ® are correct but ® is not the correct explanation of (A)
3. (A) is incorrect while ® is a correct statement
4. Both (A) and ® are correct.
Answer: 1
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7. Which one of the following is the governing factor in deciding the type of redressal agency which will deal
with the dispute of a consumer?
1. Area of sales of goods and services
2. Type of goods and services sold
3. The choice of the consumer
4. The value of goods and services sold
Answer: 4

8. Match list-I with list-II relating to the roles played by government in an economy and indicate the correct
code of their matching.
List-I List-II

a. Regulatory role (i) deciding timing and usage of resources

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b. Promotional role (ii) capital intensive projects of public sector

c. Entrepreneurial role (iii) imposing of high import duty
d. Planning role (iv) measures to control risk in priority sectors
(a) (b) (c) (d)
1. (iv) (ii) (i) (iii)
2. (iii) (i) (iv) (ii)
3. (iii) (iv) (ii) (i)
4. (i) (iii) (iv) (ii)
Answer: 3

9. Which one of the following statement is not correct relating to competition policy and law?
1. Collusion and dominance have potential for unfair competition.
2. The appeal against decision of competition commission of India can be made to the competition appellate
tribunal
3. State monopolies, government’s business policies and functioning of regulatory authorities cannot be
scrutinized under this law
4. Abuse of dominance rather than dominance should be the key for competition policy or law
Answer: 3
10. Statement (I): Developing countries can borrow more than their quota under extended fund facility (Eff) of
IMf
Statement (II); the extended fund facility was created in 1984 to help the developing countries over longer period
upto 3 years.
Codes:
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1. Statement (I) is correct but (II) is not correct

2. Statement (II) is correct but (I) is not correct
3. Both the statements (I) and (II) are correct
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4. Both the statements (I) and (II) are not correct

Answer: 1

11. Assertion (A): Liberalisation means to reduce unnecessary restrictions and controls on business
units imposed by government.
Reason (R): Liberalisation was based on the assumption that market forces could guide the economy in a
more efficient manner than government control.
Codes:

a. Both (A) & (R) are true and (R) is the correct explanation of (A).
b. Both (A) & (R) are true but (R) is not the correct explanation of (A).
c. (A) is true but (R) is false.
d. (A) is false but (R) is true.
Answer: a

Explaination- Liberalisation means to reduce unnecessary restrictions and controls on business units imposed
by government. It means procedural simplification, relaxing trade and industry from unnecessary
bureaucratic hurdles. Prior to 1991, government has imposed several types of controls on Indian economy
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e.g., industrial licensing system; price control, import livence, foreign exchange control etc. Economic reforms
made an attempt to reduce restrictions imposed on the economy.

12. Assertion (A): Privatisation means allowing the private sector to set up more and more of such
industries as were previously reserved for public sector.
Reason (R): Under it, existing enterprises of the public sector are either wholly or partially sold to private
sector.
Codes:

a. Both (A) & (R) are true and (R) is the correct explanation of (A).
b. Both (A) & (R) are true but (R) is not the correct explanation of (A).
c. (A) is true but (R) is false.
HILAL AHMAD:

d. (A) is false but (R) is true.

Answer: A

Explaination: privatization of industries means opening the gates of public sector to private sector.

13. Assertion (A): Globalization means linking the economy of a country with the economies of other
countries by means of free trade, free mobility of capital and labour.
Reason (R): It also means inviting multinational corporations to invest in the nation.
Codes:

a. Both (A) & (R) are true and (R) is the correct explanation of (A).
b. Both (A) & (R) are true but (R) is not the correct explanation of (A).
c. (A) is true but (R) is false.
d. (A) is false but (R) is true.
Answer: A

14. Which of the following statement is incorrect:

a. 1938:‘National Planning Committee’ was established under the chairmanship of Jwahar Lal Nehru
by the Indian National Congress. Its recommendations could not be implemented because of the beginning
of the Second World War and changes in the Indian political situation.
b. 1944: ‘Gandhian Plan’ was given by Shriman Narayan Agarwal.
c. 1945: ‘People’s Plan’ was given by M N Roy.
d. 1950: ‘Sarvodaya Plan’ was given by J P Narayan. A few points of this plan were accepted by the
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Government.
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e. None of the above

Answer: E
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15. Which one of the following is correct:

a. The Planning Commission was set – up on March 15, 1950 under the chairmanship of JL Nehru, by a
resolution of Union Cabinet.
b. It is an extra – constitutional, non – statutory body. (i.e., No provision in Constitution for its
formulation.)
c. It consists of Prime Minister as the ex – officio Chairman, one Deputy – Chairman appointed by the
PM and some full time members.
d. All of the above

Answer: d

16. Assertion (A): Disinvestment trends to arouse opposition from employees.

Reason (R): It may increases the cost of production.
a. Both A & R are true
b. A is true but R is false
c. Both A & R are false.
d. A is false but R is true.
Answer: c
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17. Assertion (A). The GATT applied only to trade in merchandise goods.
Reason (R). the WTO covers trade in goods, services and trade in ideas or intellectual properties.
a. Both A & R are true and R is the correct explanation of A.
b. Both A & R are true and R is not the correct explanation of A.
c. A is true but R is false.
d. A is false but R is true.
Answer: A

18. Assertion (A). Private location process leads to change in management with change in ownership.
Reason (R). Change in management is not a necessary condition for the process of privatization.
Code:
HILAL AHMAD:

a. Both A and R are correct

b. A is correct but R is incorrect
c. A is incorrect but R is correct
d. Both A & R are incorrect.
Answer: B

19. Consider the following statements

I. Economic development is a broader and normative concept. It concerns with structural change in
economy
II. Economic growth is a narrow concept. It concerns with increase in the economy’s output.
Which of the statement given above is or are correct?

a. Only I b. Only II c. Both I & II d. None of these

Answer: c

20. The term ‘Hindu rate of growth’ refers to the 3.70% per annum growth rate achiewed by the Indian
economy over the first six five year plans’. The term was coined by
a. JN Bhagwati b. KN Raj c. Raj Krishna d. S. Chakravarty
Answer: c

21. The rolling plan concept in Nation Planning was introduced by

a. Indira Gandhi Government
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b. The National Government

c. The Janata Party Government
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d. Rajiv Gandhi Government

Answer: c
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22. Assertion (A). Industrial policy 1991 initiated liberalization of Indian economy.
Reason (R). Industrial growth was very slow before 1991.
Code:
a. Both A & R are true & R is the correct explanation of A.
b. Both A & R are true but R is not the correct explanation of A.
c. A is true but R is false.
d. A is false but R is true.
Answer: A

23. Assertion (A). Domestic competition has increased since 1991.

Reason (R). Except for 7 industries, rest has delicenced.
Code:
a. Both A & R are true and R is the correct explanation of A.
b. Both A & R are true but R is not the correct explanation of A.
c. A is true but R is false.
d. A is false but R is true.
Answer: A
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24. Match the following two lists of Statements:

List –I List-II
a. When one company purchase other one i. Conglomeration merger
b. Merger between two companies having ii. Consolidation merger.
no common between areas.
c. Merger between two companies that iii. Purchase merger
sell the same products in different markets.
d. Two companies are bought and iv. Market extention merger.
combined under now entity.

Codes:
HILAL AHMAD:

A b c d

a. Iii iv I ii
b. Iv iii ii I
c. Ii I iii iv
d. I ii iii iv
Answer: C

25. Match the following legislations with the year of their enactment;
a. Industries (Develop & Regulation) Act. i. 1969
b. Foreign exchange management act ii. 1951
c. Securities exchange board of India Act iii. 1999
d. MRTP act iv. 1992
Codes:

A b c d

a. I iii iv ii
b. Ii iv I iii
c. Iii I iv ii
d. Iv iii ii i
10

Answer: A
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26. Match the following

List-I List-II
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a. Focus on social environment 1. Traditional theorist

b. Focus on physical environment 2. Human relationists
c. One person one superior 3. Unity direction
d. One head one plan 4. Unity of command
Code:

A b c d

a. 1 2 3 4
b. 2 1 4 3
c. 3 2 1 4
d. 4 3 2 1
Answer: b

27. Match the following components of Business environments?

a. Economic environment i. Exim policy
b. Social environment ii. Customs
c. Political environment iii. Social values
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d. Legal environment iv. Business law and banking act

Code:

A b c d

a. I ii iii iv
b. Iii iv ii i
c. Iii I ii iv
d. I ii iv iii
Answer: A

28. Arrange the following Acts in the order in which they came into force.
HILAL AHMAD:

i. The monopolies restrictive trade pracrices act

ii. Indian contract act
iii. The sales of goods act
iv. The foreign exchange management act
Codes:

a. Ii iii I iv
b. Iii I iv ii
c. I ii iii iv
d. Iv iii ii i
Answer: b

29. Consumers have the rights

i. To be protected against goods and services that are hazardous to life and property.
ii. To assured wherever possible access to a variety of goods and services at national prices.
Code:

a. Both I & ii are correct.

b. Both I & ii are wrong.
c. Only I is correct.
d. Only ii is correcr.
Answer: A
11

30. Which of true for existing economic and industrial policies of Indian government.
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i. FERA was abolished

ii. MRTP was abolished
iii. Cash compensatory support for export can abolished.
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iv. Industrial licening (except a few goods) was abolished.

Code:

a. I, ii, iii and iv

b. I, iii and iv
c. Only iii and iv
d. Only ii and iii
Answer: c

31. Which can be a method of privatization?

i. Disinvestment
ii. Denationalization
iii. Purchasing share
iv. Take over
v. Merger
Code:

a. I & ii b. I, ii and iii c. ii, iv, and v d. all of the above

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Answer: a

32. Which one of the following committees recommended the abolition of reservation of item of small
scale sector in industry?
a. Abid Hussain committee c. Nayak committee
b. Narsimhan committee d. Rakesh Mohan committee
Answer: a

33. Why is government of India disinvesting its equity in the central public sector enterprises?
i. The government intends to use the revenue earned from the disinvestment mainly to pay back the
external debt.
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ii. The government no longer intends to retain the management control of the CPSEs.
Which of the statements given above are correct?

a. Only I b. only ii c. both I & ii d. neither I nor ii

Answer: d

34. Consider the following statements

i. Privatization of public sector units occurs, when government sells 5% of its share.
ii. Abid Hussain committee recommended the abolition of reservation of items of small scale sector in
industry
Which of the statements given above are correct?

a. Only I b. both I & ii c. only ii d. neither I nor ii

Answer: c

35. Which one of the following is correct:

a. Chalapathi Rao Committee- Regional Rural Banks In India
b. Bhagwati Committee- SEBI Takeover Regulations
c. N K MITRA Committee- Investor Protection
d. All of the above

Answer: D
12

36. Which of the following statement is correct

Statemet-I: In the budget of 1997-98, the government had proposed to replace FERA-1973 by FEMA
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(Foreign Exchange Management Act).

Statement-II: It came into force on June 1, 2000

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Codes:

a. Both the statements are correct.

b. Both the statements are incorrect.
c. Statement-I is correct but statement-II is incorrect
d. Statement-II is correct but statement-I is incorrect.
Answer: a

37. Privatization of ownership through scale of equity shares is called

a. Denationalization c. Contracting
b. Disinvestment d. none of these
Answer: b

38. Which of the following is not a business opportunity generated by globalization?

a. Access to low cost labour.
b. Cheap international transport
c. Currency crisis
d. Less stringent regulations of the business environment
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Answer: c

39. Globalization isbeneficail for firms because

a. It protects them against foreign competition
b. It cushions them from the effects of events in other countries.
c. It opens up new market opportunities.
d. It increases the risk and uncertainty of operating in globalizing world economy.
Answer: c

40. Which among these is not a method of Privatisation?

a. Denationalization c. Sale of business
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b. Franchising d. All of these

Answer: c

41. ‘the age of discontinuity’ (1969) has been authored by

a. John Drydon c. Peter F Druker
b. Cyril Debydeen d. None of these
Answer: c

42. Which one is not the main objective of fiscal policy in India?
a. To increase liquidity in the economy
b. To promote price stability
c. To minimize the inequalities of income and wealth.
d. To promote employment opportunities.
Answer: a

43. Which of the following is not an objective of competition Act 2002

a. Prohibitionof abuse of dominant position.
b. Prohibition of restrictive trade practices
c. Prohibition of anti competitive agreement
d. Regulation of combinations
Answer: b

44. The competition Bill 2001 has been introduced to amend the
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a. MRTP Act 1969

b. Company regulation act 1954
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c. Industrial licensing act 1951

d. None of the above
Answer: a
 14 | P a g e UGC NET-COMMERCE SESSION-2022

45. The role of consumerism has

a. Consumer education
b. Product rating
c. Liaison with government and with producers
d. All of the above
Answer: c

1. Which of the following is not a feature of business environment?

(a) Inter-relatedness (b) Dynamic nature

(c) The totality of external forces (d) Complexity

(e) Identify threats and early warning signals

2. With the introduction of photostat machines in the market, carbon paper industry was adversely
affected. Which dimension of business environment is involved in this case?
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(a) Economic (b) Political

(c) Technological (d) Social

3. Macro Environment includes …

(a) Economic Environment (b) Social Environment

(c) Political Environment (d) Technological Environment

(e) All of these

4. Which of the following is not includes Micro Environment?

HILAL AHMAD:

(a) Legal Environment (b) Customers

(c) Suppliers (d) Competitors

(e) Financiers

5. Which of the following is not includes Elements of Legal Environment?

(a) Administrative orders issued by government authorities (b) Court judgments

(c) Rights and duties of citizens. (d)Business and tax laws

(e)International relations of the country

6. Increase in cost of production due to increase in minimum wage rates by Government is an example of:

(a) Legal Environment (b) Political Environment

(c) Social Environment (d) Economic Environment

7. Most business firms are using social media (like Facebook, Twitter, etc.) to promote their business.
Which dimension of the Business Environment is being highlighted?
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(a) Legal Environment (b) Social Environment

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(c) Technological Environment (d) Political Environment

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8. Beti Bachao Beti Padhao yojana started by the government of India is a part of?

(a) Legal Environment (b) Social Environment

(c) Technological Environment (d) Political Environment

9. General environment not includes:

(a) Legal Environment (b) Political Environment

(c) Social Environment (d) Economic Environment

(e) Customer

10. Specific environment includes:

(a) Investor (b) Suppliers

(c) Creditors (d) Employees

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(e) All of these

11. Zee media group decides to open schools for lesser privileged children is an example of:

(a) Social Environment (b) Legal Environment

(c) Political Environment (d) Economic Environment

12. ‘Pachmarhi, hill station in Madhya Pradesh, banned the sale of single-use plastic items considering its
negative impact on the environment’. …………… environment is highlighted in the given statement.

(a) Social Environment (b) Legal Environment

HILAL AHMAD:

(c) Political Environment (d) Economic Environment

13. All liquor bottles to carry a statutory warning that alcohol consumption is injurious to health’. It is
related to..

(a) Legal Environment (b) Social Environment

(c) Political Environment (d) Economic Environment

14. Introduction of GST and its impact on business enterprises is a part of:

(a) Legal Environment (b) Social Environment

(c) Political Environment (d) Economic Environment

15. ________ environment is with in the control of business.

(a) Internal (b) External

(c) Micro (d) Macro

16. Which of the following is not includes Elements of Social Environment?

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(a) Social Values (b) Customs and traditions

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(c) Literacy rates (d) Tax laws

(e) Lifestyle
 16 | P a g e UGC NET-COMMERCE SESSION-2022

17. Which of the following is not includes Elements of Economic Environment?

(a) Rates of saving and investment (b) Fiscal policy

(c) Monetary policy (d) Change in the income of the people

(e) Government foreign policy towards business

18. Environment refers to all those internal and external factors which directly and continuously influence
the working and performance of a business unit or specific firm, is called?

(a) Micro Environment (b) Macro Environment

(c) a and b both (d) None of these

19. Environment refers to all those external forces which have a homogeneous (Same) effects on the
working of business organizations across business sectors. is called?

(a) Micro Environment (b) Macro Environment

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(c) a and b both (d) None of these

20. Those political factors which have their effects on the working of the business are known as…

(a) Legal Environment (b) Social Environment

(c) Political Environment (d) Economic Environment

21 Macro environment is also known as _________?

(a) direct environment (b) indirect environment

HILAL AHMAD:

(c) competitive environment (d) social environment

22. External factors affecting a business environment also be referred to ___factors.

(a) Controllable (b) uncontrollable

(c) Relevant (d) Global

23. Internal factors affecting a business environment also are referred to ____factors.

(a) Controllable (b) Uncontrollable

(c) Relevant (d) Global

24. Macro environment is also called _______.

(a) General environment (b) Operating environment

(c) Economic environment (d) Political environment

25____ environment is beyond the control of the business.

(a) Internal (b) External

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(c) Micro (d) Macro

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Answer –

1. Answer- (e) Identify threats and early warning signals

 17 | P a g e UGC NET-COMMERCE SESSION-2022

2. Answer- (c) Technological

3. Answer- (e) All of these

4. Answer- (a) Legal Environment

5. Answer-(e)International relations of the country

6. Answer- (d) Economic Environment

7. Answer- (c) Technological Environment

8. Answer- (d) Political Environment

9. Answer- (e) Customer

10. Answer-(e) All of these

11. Answer-(a) Social Environment

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12.Answer- (b) Legal Environment

13. Answer- (a) Legal Environment

14. Answer- (d) Economic Environment

15. Answer- (a) Internal

16.Answer- (d) Tax laws

17. Answer- (e) Government foreign policy towards business

HILAL AHMAD:

18. Answer- (a) Micro Environment

19. Answer-(b) Macro Environment

20. Answer- (c) Political Environment

21. Answer (b) indirect environment.

22. Answer (b) uncontrollable

23. Answer (a) Controllable

24. Answer (a) General environment.

25. Answer (b) External

IMPORTANT QUESTIONS

Q1. Monetary Policy is a regulatory policy by which the ______or monetary authority of a country controls
the supply of money, availability of bank credit and cost of money that is the rate of interest:
a) Central Bank (RBI) b) SBI
c) IBA d) None of These
17

Monetary policy refers to that policy through which the government or the central bank of the country
controls the supply of money, availability of money and cost of money or rate of interest, in order to attain a
Page

set of objectives oriented towards the growth and stability of the economy.
 18 | P a g e UGC NET-COMMERCE SESSION-2022

Q2. _______controls the supply of money and bank credit:

a) RBI b) Indian Banking Association
c) SEBI d) None of These

Q3. Which of the following is correct:

a) The Central Bank has the duty to see that legitimate credit requirements are met
b) And at the same credit is not used for unproductive and speculative purposes.
c) RBI rightly calls its credit policy as one of controlled expansion
d) All of the Above

Q4. Price Stability implies promoting ______with considerable emphasis on price stability:
a) Financial Development b) Economic Development
c) Strategic Financial Development d) None of These

Q5. Restriction of Inventories and stock means:

a) Central Monetary authority carries out this essential function of restricting the development of the
economy and all social and economic class of people
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b) Ban on Huge amount of Inventories by Central Monetary Authority

c) Both of Above
d) None of These

Q6. An open market operation is an instrument of monetary policy which involves buying or selling of
________from or to the public and banks:
a) Bonds and Other local securities b) Debentures and Shares
c) Government Securities d) None of These

Q7. Which among the following is correct about Sterlization:

a) Sterlization means re-cycling of foreign capital inflows to prevent appreciation of domestic currency and
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to check the inflationary impact of such capital

b) Sterlization is carried out through open market operations.
c) To reduce the hurdles for implementation of sterlization, RBI uses a variety of other measures to manage
interest rates.
d) All of the Above

Q8. Every financial institution has to maintain a certain quantity of liquid assets with themselves at any
point of time of their total time and demand liabilities. These assets have to be kept in non cash form such
as G -secs precious metals, approved securities like bonds etc. The ratio of the liquid assets to time and
demand liabilities is termed as _____:
a) Statutory Liquidity Ratio b) Cash Reserve Ratio
c) Reverse Repo d) None of These

Q9. Which among the following is incorrect among Moral Suasion:

a) RBI may request commercial banks to not to give loans for unproductive purpose
b) So that which may increases inflation
c) Because it does not add to economic development
d) All of the Above
e) None of These

10. The National Consumer Disputes Redressal Commission (National Commission) shall have jurisdiction
to complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees
18

(a) One crore (b) 50 lakh

(c) 2 crore (d) 75 lakh
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11. Appeal against the order of National Commission can be preferred before
(a) The President (b) The Supreme Court of India
 19 | P a g e UGC NET-COMMERCE SESSION-2022

(c) The Ministry of Consumer Affairs (d) No such option is available

12. Appeal against the order of National Commission can be preferred before the Supreme Court of India
within a period of ............ days from the date of the order
(a) 45 days (b) 60 days
(c) 30 days (d) 90 days

13. Which Section of the Act states that appeal against the order of National Commission can be preferred
before the Supreme Court of India
(a) Section 21 (b) Section 22
(c) Section 24 (d) Section 23
14. If a trader or a person or the complainant fails to comply with any order made by the District Forum,
the State Commission or the National Commission, they shall be punishable
(a) with imprisonment for a term less than one month
(b) with imprisonment for a term less than one year
(c) with imprisonment for a term less than one month but which may extend to three years
(d) with imprisonment for a term less than one month but which may extend to one year
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15. As per Section 30 of the Act, who can make rules for carrying out the provisions contained in the act?
(a) Central Government
(b) State Government
(c) Both Central & State Government in respect of the clause specified in Section 30 of the Act
(d) Supreme Court of India

16. As per section 30(A) of the Act, who can make regulations with this Act with the previous approval of
the Central Government for giving effect to the provisions of this Act
(a) Central Consumer Protection Council
(b) National Consumer Disputes Redressal Commission
HILAL AHMAD:

(c) Ministry of Consumer Affairs

(d) Supreme Court of India

17. The President of National CDRC shall be a person who is or has been
(a) a Judge of the High Court (b) a Judge of the Supreme Court
(c) a Chief Justice of the High Court (d) a well known jurist

18. The selection committee for appointing members of National CDRC is consisting of
(i) A person who is a Judge of Supreme Court, to be nominated by the Chief Justice of India (Chairman)
(ii) The Minister in Charge of consumer affairs in Central Government (Member)
(iii) The Secretary in the Department of Legal Affairs in the Government of India (Member)
(iv) The Secretary of the Department dealing with consumer affairs in the Government of India (Member)
Codes:
(a) (i), (ii) & (iii) (b) (i), (ii) & (iv)
(c) (i), (ii) & (iv) (d) (i), (iii) & (iv)

19. The salary or honorarium and other allowances payable to the members of the National Commission
shall be prescribed by ......................
(a) Central Government (b) President
(c) Supreme Court (d) High Court

20. Every member of National CDRC shall hold office for a term of ...................
19

(a) Five years or up to the age of sixty seven years

(b) Five years or up to the age of seventy years
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(c) Six years or up to the age of seventy years

(d) Five years or up to the age of sixty five years
 20 | P a g e UGC NET-COMMERCE SESSION-2022

21. The CDRF (District Forum) shall refer a copy of the admitted complaint to the opposite party within
................... days from the date of its admission for giving reply about the compliant.
(a) 21 days (b) 30 days
(c) 25 days (d) 15 days

22. The District Forum shall have the same powers as that of a civil court under Code of Civil Procedure,
1908 while trying a suit in respect of which of the following matters
(i) The summoning and enforcing the attendance of any defendant or witness and examining the witness
on oath
(ii) The discovery and production of any document or material object as evidence
(iii) The reception of evidence on affidavits
(iv) Issuing of any commission for the examination of any witness
Codes:
(a) (i), (ii), (iii) (b) (i), (ii), (iv)
(c) (i), (iii), (iv) (d) (i), (ii), (iii) & (iv)

23. The District Forum shall be deemed to be a civil court for the purposes of section 195 and Chapter XXVI
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of ................... .
(a) The Indian Penal Code, 1860 (b) The Code of Criminal Procedure, 1973
(c) The Civil Procedure Code, 1908 (d) None of the above

24. Every order made by the District Forum shall be signed by its
(a) President only (b) President and the member
(c) Members who conducted the proceeding (d) Either (b) or (c)

25. The President of the State CDRC shall be a person who is or has been a
(a) Judge of a Supreme Court (b) Judge of a High Court
(c) Judge of a District Court (d) A well known jurist
HILAL AHMAD:

26. What are the qualifications to be appointed as the member of the consumer dispute redressal
forum/commission
(i) be not less than thirty-five years of age
(ii) possess a bachelor's degree from a recognised university
(iii) be persons of ability, integrity and standing
Codes:
(a) (i) & (ii) (b) (i) & (iii)
(c) (ii) & (iii) (d) (i), (ii) & (iii)

27. For appointing as member of the consumer dispute redressal forum/ commission, at least ..................
years experience in dealing with problems relating to economics, law, commerce, accountancy, industry,
public affairs or administration is required?
(a) 15 years (b) 5 years
(c) 10 years (d) 7 years

28. A person shall be disqualified for appointment as a member of the consumer dispute redressal
forum/commission if he
(i) has been convicted and sentenced to imprisonment for an offence which involves moral turpitude
(ii) is an undercharged insolvent
(iii) is of unsound mind and stands so declared by a competent court
(iv) has been removed or dismissed from the service of the Government or a body corporate owned or
20

controlled by the Government

(v) has such financial or other interest as is likely to affect prejudicially the discharge by him of his
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functions as a member
Codes:
(a) Only (i) & (iii) (b) Only (i), (ii) & (iv)
 21 | P a g e UGC NET-COMMERCE SESSION-2022

(c) Only (ii), (iv) & (v) (d) All the above

29. Who is the Chairman of the selection committee constituted for appointing chairman and members of
the District Forum (CDRF)?
(a) President of the State Commission
(b) Chief Justice of the High Court
(c) Secretary in charge of the Department dealing with consumer affairs in the State
(d) Minister in charge of the Department dealing with consumer affairs in the State

30. Which of the following are the member of the selection committee constituted for appointing chairman
and members of the District Forum (CDRF)?
(i) Minister in charge of the Department dealing with consumer affairs in the State
(ii) Secretary in charge of the Department dealing with consumer affairs in the State
(iii) Secretary, Law Department of the State
Codes:
(a) (i) & (ii) (b) (ii) & (iii)
(c) (i) & (iii) (d) (i), (ii) & (iii)
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31. In the absence of the President of the State Commission, who will act as Chairman of the Selection
Committee constituted for appointing chairman and members of the District Forum (CDRF)?
(a) Minister in charge of the Department dealing with consumer affairs in the State
(b) The Chief Justice of the High Court
(c) A sitting Judge of that High Court nominated by the Chief Justice of the High Court
(d) Secretary in charge of the Department dealing with consumer affairs in the State

32. The salary or honorarium and other allowances payable to the members of the District Forum shall be
be prescribed by ....................
(a) The Governor of the State (b) The National Commission
HILAL AHMAD:

(c) The Central Government (d) The State Government

33.The District Forum shall have jurisdiction to entertain complaints where the value of the goods or
services and the compensation claimed does not exceed ..................... rupees
(a) 50 lakhs (b) 20 lakhs
(c) 10 lakhs (d) 5 lakhs

34. Maintaining a foreign currency account is helpful to

(A) Avoid transaction cost.
(B) Avoid exchange risk.
(C) Avoid both transaction cost and exchange risk.
(D) Avoid exchange risk and domestic currency depreciation

35. India’s foreign exchange rate system is?

(A) Free float (B) Managed float
(C) Fixed . (D) Fixed target of band

36. Abid Husain Committee is related to ?

1. Reform in taxes 2. Reform in government projects
3. Reform in small industries 4. Reform in middle level industries

37. Which of the following is/are true regarding FERA, 1973 -

21

a. Law violators were treated as criminal offenders

b. Enforcement Directorate had the power to arrest any person of suspicion
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c. It aimed at minimizing dealings in forex and foreign securities

d. All of the above
 22 | P a g e UGC NET-COMMERCE SESSION-2022

38. The statutory basis for administration of foreign exchange in India is

A. Foreign Exchange Regulation Act, 1973
B. Conservation of foreign Exchange and Prevention of Smuggling Act.
C. Foreign Exchange Management Act, 1999
D. Exchange Control Manual

39. An authorised person under FEMA does not include

A. an authorised dealer B. an authorised money changer
C. an off-shore banking unit D. an exchange broke

40. The term 'loro account' means

A. our account with you B. your account with us
C. their account with them D. none of the above

41. The term 'Vostro account' means

A. our account with you B. your account with us
C. their account with them D. none of the above
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42. The market forces influencing the exchange rate are not fully operational under
A. floating exchange rate system B. speculative attack on the market
C. fixed exchange rate system D. current regulations of IMF

43. According to classification by IMF, the currency system of India falls under
A. managed flatting B. independently floating
C. crawling peg D. pegged to basked of currencies

44. Under fixed exchange rate system, the currency rate in the market is maintained through
A. official intervention
HILAL AHMAD:

B. rationing of foreign exchange

C. centralizing all foreign exchange operations with central bank of the country
D. none of the above

45. The reduction in the value of a currency due to market forces is known as
A. revaluation B. depreciation
C. appreciation D. inflation

46. The largest foreign exchange market in the world is

A. New York B. London
C. Japan D. Swiss

47. For Karl Marx, where do our values come from?

a) They are a product of our upbringing and our parents.
b) They are a product of the economic system within which we live.
c) They are a product of social inequality.
d) They are a product of what we are taught at school.

48. What does Milton Friedman believe to be the sole responsibility of business?
a) The only social responsibility of business is to its shareholders.
b) Managers should act in ways that balance the interest of society and shareholders.
c) The primary responsibility organizations have is to its employees.
22

d) The primary responsibility organizations have is to its stakeholders.

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49. What, according to Adam Smith, is the best way to promote collective interest?
a) Through government making decisions about what is in the public interest.
b) Through everyone working together to support each other.
 23 | P a g e UGC NET-COMMERCE SESSION-2022

c) Through everyone working on their own self-interest

d) Through individuals forgoing their personal interest for the good of the collective.

50. What is green washing?

a) Transforming products to be more ethical.
b) Making a product appear more ethical that it really is.
c) Converting the company to green production methods.
d) Convincing customers to buy ethically.

51. What is triple bottom line?

a) An accounting tool that looks at the impact on people, planet and profits.
b) A management strategy which states all the attention should be on profits.
c) An accounting tool that looks at cost, profit and loss.
d) A management strategy which focuses on corporate social responsibility.

52 .Why do alternative organizations run differently from conventional shareholder led approach?
a) They do not have shareholders.
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b) They are run in non-hierarchical ways which aim to provide a positive impact on society rather than to
make profit.
c) They priorities corporate social responsibility.
d) They aim to give money to charities and good causes.

53.What does and Ethical Foundation for an organisation embody?

a) The structure, operational and conduct of the activities of the organization
b) The basic principles which govern the external and internal relations of the organization
c) Neither of the above
d) All of these
HILAL AHMAD:

54.What does the importance of ethical behavior, integrity and trust call into question?
a) The extent to which managers should attempt to change the underlying beliefs and values of individual
followers
b) Who does what c) What we do next d) None of the above

SET-2

1. --------is the process of analyzing the environment for the identification of factors which have impact on
or have implication for the business.
(a)Forecasting (b) assessment (c ) scanning (d) None of these

2. The low income economies are sometimes referred to as ----------

(a) First world (b) Second world (c ) Third world (d) None of these

3. This is the Govt.’s strategy in respect of public expenditure and revenue which have a significant Impact
on business.
(a) Monetary policy (b) Fiscal Policy (c ) Trade policy (d) Foreign exchange
policy

4. In which year the constitution of India was amended to add, among other things, that India should be a
socialist state?
23

(a) 1954 (b) 1976 (c ) 1980 (d) 1985

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5. The method used for transferring complex technology is -----------

(a) Trunkey contracts (b) Licensing agreements
 24 | P a g e UGC NET-COMMERCE SESSION-2022

(c )Training of experts (d) None of these

6. ---------is concerned with holding the balance between economic and social goals and between Individual
and communal goals.
(a) Corporate Management (b) Corporate governance
(c ) Business ethics (d) None

7. In which year the Adrian Cadbury Committee on corporate governance was appointed?
(a) 1991 (b) 1996 (c ) 1980 (d) 2000

8. CII stands for:

(a) Confederation of Indian Industries (b) Condition of Indian Industries
(c ) Classes of Indian Industries (d) Civilians of Indian Industries
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9. According to Birla Committee on Corporate governance, the non executive directors should Comprise at
least -------- per cent of the Board, if one of them is the chairman

(a)30% (b) 20 (c ) 10 (d) 70

10. According to Birla Committee, the non executive directors should Comprise at least -------- percent of
the Board, if the Chairman and managing director is the same person.

(a) 50% (b) 20% (c ) 10 (d) 20

HILAL AHMAD:

11. --------- is concerned with the withdrawal of State from an industry or sector, partially or fully
(a) Liberalization (b) Modernisation
(c ) Privatization (d) Globalisation.

12. In which year Govt. of India appointed the Rangarajan Committee on disinvestment in PSEs
(a) 1990, (b) 1991 (c ) 1993 (d) 1996

13. The Govt. of India constituted a Public sector Disinvestment commission on------
(a) 15 March 1991 (b) 23 Aug 1993
(c ) 23 Sept.1993 (d) 06 May 1994

14. Which Act was replaced with the introduction of Competition Act 2002?
(a) FERA (b ) MRTP
(c) POTA (d) None of these
15. Competition Act was enacted in the year-------
(a) June 2002 (b) Dec. 2002
(c ) January 1999 (d) None of these

16. Which committee recommended the enactment of Competition Act

(a) High level Committee on competition policy and Law
(b) A Committee on Law and Order
24

(c ) A Central Committee for Research and Policy

(d) None of these.
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 25 | P a g e UGC NET-COMMERCE SESSION-2022

17. ----------is the rate at which the central bank discounts or rediscounts the eligible bills.
(a) Credit rate (b) Bank rate (c ) Bill rate (d) Deposit rate

18. Who is concerned with the auditing of the receipts and expenditure of the State and Central Govt.
(a) Accountant General (b) Comptroller and Auditor General
( C) Reserve Bank of India (d) None of the above.

19. Which policy is concerned with raising revenue through taxation and deciding on the level and Pattern
of expenditure?
(a) Monetary policy (b) fiscal Policy
(c ) Cash policy (d) None of these

20. Who is responsible for presenting the Union Budget before the Parliament?
(a) Prime Minister (b) Finance Minister
(c) RBI Governor (d) None of the se
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21. ---------is concerned with all current expenditure of the Govt. on administration
(a) Revenue expenditure (b) Capital expenditure
(c) Total Expenditure (d) None

22. The Planning commission was set up in India in --------

(a) 1950 (b) 1951 (c) 1947 (d) 1952

23. Who is the President of National Development Council ?

HILAL AHMAD:

(a) Finance Minister (b) Prime Minister

(c) Monteng sing Aluvalia (d) None

24. The intervening period between third and forth Five year plans is regarded as ---
(a) Plan period (b) Plan holidays
(c ) Plan days (c) None of these

25. Which Govt. introduced the concept of ‘ Rolling Plan’

(a) Manmohan govt. (b) Vajpayee
(c) Janatha Govt. (d) Rao Govt.

26. From which five year plan ‘growth with social justice’ has received added emphasis?
(a) 5th (b) 4th (c ) 3rd (d) 6th

27. Which sector got priority in the 1st five year plan?
(a) Agriculture (b) Industrial
(c) Infrastructure (d) Communication
25

28. GAAT was born in the year--------------

(a) 1948 (b)1945 (c) 1947 (d) 1950
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 26 | P a g e UGC NET-COMMERCE SESSION-2022

29. What was the predecessor of WTO?

(a) GAAT (b) IMF (c) ADB (d) None of the above

30. In which year WTO was formulated ?

(a) 1995 (b) 1948 (c )1991 (d) 1988

31. FEMA was passed in the year ---

(a) 1999 (b) 1989 (c) 2000 (d) 1997

32. ----------refers to regulation of credit for specific purpose or branches of economic activity?
(a) Credit control (b) Selective Control
(c) Bank control (d) None of these

33. ---------is the difference between the market value of security and the amount lent by the Bank?
(a) Loan amount (b) Margin of safety
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(c ) Margin (d) None of these

34. The quota system was first introduced in the year?

(a) 1955 (b) 1960
(c) 1949 (d) 1952

35. PLR stands for

(a) Prime ministers Land Recovery (b) Prime Lending Rate
(c) Price Leverage Rate (d) None of these
HILAL AHMAD:

36. The policy of govt. related to Export and Import is:

(a) IMEX policy (b) EXIM policy
(c) Export policy (d) None of these

37. SEZ stands for ----

(a) Special Economic Zone (b) Special Export Zone
(c) Socially Backward Zone (d) None

38. ------- is an Act to control and regulate the concentration of economic power to the common detriment?
(a) IRDA Act (b) MRTP
(c) ILO Act (d) FERA

39. Consumer Protection Act was came in to force-------

(a) 1985 (b) 1986 (c) 1999 (d) 1989

40. --------consist of economic conditions ,economic policies, industrial policies and economic system:
(a) Business environment (b) Economic Environment
(c) Natural Environment (d) None
26

41. Indian Economy is an example of ------

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(a) Capitalist economy (b) Closed economy

(c) Mixed Economy (d) None of these
 27 | P a g e UGC NET-COMMERCE SESSION-2022

43. --------is the main aim of economic planning in India?

(a)Economic Growth (b) Industrial expansion
(c) Growth with social justice (d) N0ne

44. ------is the apex body of the economic planning in India?

(a) Planning Commission (b) Parliament
(c) Supreme Court (d) None of these

45. TRYSEM was implemented during:

(a) 2nd plan period (b) 5th plan period
(c) 4th plan period (d) 7th Plan period

46. In the PEST frame work for environmental analysis, what does the letter E stands for
(a) Ethical (b) Economic
(c) Educational (d) Ecological
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47. Analysing process of change in the Business environment involves conceptualizing it as

(a) Diverse (b) Complex
(c) Dynamic (d) Static

48. Who was forced to step-down as Chief Executive after describing one of his Company’s products As
‘total crap’?
(a) Gerald ratner (b) Bill Gates
(c) Alan sugar (d) None of these
HILAL AHMAD:

49. In which year was the National Minimum wage introduced in the UK
(a) 1995 (b) 1999 (c) 1998 (d) 2000

50. The concept of a firms ‘license to operate’ refers to

(a) A legal requirement for company registration
(b) An agreement recognizing trade unions
© The need for a firm to retain its legitimacy in the eyes of the public
(d) The qualifications needed by company directors

51. What does the term ‘third sector’ refers to

(a) The voluntary sector (b) The service sector
(c ) The high technology industries (d) None of these

52. A multinational Corporation is defined as

(a) Having a multi ethnic work force (b) Having suppliers in more than one country.
© Carrying out production in more than one country. (d) None of the above

53. Which type of organizational structure is characterized by department s dealing with specialized task
27

(a) Matrix (b) Divisional

(c) Hierarchical (d) Functional
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54. The demand curve for a product will shift outwards to the right when:
(a) The price of a substitute good rise (b) Consumer income fall
 28 | P a g e UGC NET-COMMERCE SESSION-2022

(c ) Consumer expect the price of the good fall in the future. (d) The price of the product itself fall

55. If the demand for good is relatively price inelastic and its price rises, the revenue will
(a) fall (b) remain constant
(c) rise (d) Depends on how supply responds

56. Which of the following option is not an example of ‘market failure’?

(a) Failure to produce merit goods (b) Failure to produce public goods
(c ) Failure of a firm to maximize its profits (d) Failure to account externalities

57. Which of the following is an example of a Primary form of Business activity?

(a) Hair dressing (b) Automobile production
(c ) Banking (d) Forestry

58. The price of a goods will tend to rise if:

(a) The current price is above the equilibrium
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(b) The current price is below the equilibrium

(c ) The quantity demanded is less than the quantity supplied
(d) There is a reduction in the cost of a substitute commodity

59. Productivity is measured by:

(a) The growth on Output of a firm (b) The growth on Profit of a firm
(c ) Total output/Total input (d) Total amount of investments in capital goods

60. The transfer of asset from public sector to the Private sector is referred to as:
(a) Privatisation (b) De regulation
HILAL AHMAD:

(c ) Nationalisation (d) Individualisation

61. The Branch of Govt. that is responsible for implementing or carrying out law and policy is referred
(a) The legislature (b) The executive
(c ) The Judiciary (d) The bureaucracy

62. A Sub culture may be defined as

(a) A Criminal culture (b) An inferior culture
(c ) A culture that is shared by a particular group with in the society
(d) A cultural practice that is submerged or hidden

63. The main objectives of macroeconomic policy is

(a) A high and stable level of employment (b) A low and stable rate of inflation
(c ) A stable and satisfactory rate of economic growth (d) All of the above

64. Who was first argued that the purpose of business was to make profit?
(a) Milton fried man (b) Margara thcher
(c ) Elaine stembnerg (d) John Crane
28

65. How many headings are there in AVIVA’s Group Corporate social responsibility policy?
(a) 4 (b ) 8 (c ) 24 (d) 6
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 29 | P a g e UGC NET-COMMERCE SESSION-2022

66. CSR is
(a)The same as business ethics.
(b) A theory about ethics
© The integration of social and environmental concern in the daily business of the firm
(d) The title of a Govt. Committee

67. What was the focus of the Nike case?

(a) The quality of the sports foot wear

(b)The control of branding

(c ) Monitoring the conditions and rights of those involved in the supply chain
(d) The ethics of sponsor ship

68. The globally responsible leadership Initiative (GRLI) was partly founded by
(a) Enron (b) The UN global compact
(c) The WHO (d) Robert Maxwell
WHATSAPP = 9906837425

69. What is triple bottom line audit?

(a) A social, economic and environmental audit (b) An audit of the three major financial project of a
business.
(c ) An audit by the Physical Health of Employees (d) An audit of all the Sporting resources of the
enterprise.

70. What does the PPP or P3 initiative refer to?

(a) Public policy papers (b) Public Private Partnership
(c ) Private Procurement Production (d) Personal Production Proposal
HILAL AHMAD:

71. What does the PFI initiative refer to ?

(a)Private Finance Initiative (b) Private Fiscal Initiative
(c ) Public Financial Initiative (d ) Private Foundation Investment

72. The term ‘late industrialization’ refers to

(a) The need to delay industrialization because of its threats to the environment
(b) The problem faced by many developing countries as they seek to catch up to the levels of development of
richer countries
(c ) The belief that it is too late for many countries to industrialise.
(d ) That we are how entering a post industrialized world.

73. Which of the following economists is regarded as having developed the theory of comparative
Advantage?
(a) Adam Smith (b) David Rechardo
(c ) Joseph stiglits (d) Amartya Sen

74 Globalisation refers to
(a) A more integrated and interdependent world (b) Lower income world wide
(c ) Less foreign trade and investment (d) Global warming
29

75. Which one of the following is a pull factor in emigration?

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(a) Political oppression (b) Job Opportunities

(c ) Food shortage (d) War
 30 | P a g e UGC NET-COMMERCE SESSION-2022

76. Which of the following do not facilitate globalization

(a) Improvements in communication (b) Barriers to trade and investment
(c ) immigration control (d) Removal of control on movements of capital across borders.

77. Which of the following is not a deriver of globalization?

(a) The fragmentation of consumer taste between countries (b) The competitive process
(c ) The need to gain economies of scale (d) None of these

78. Globalisation is beneficial for firms because

(a) It protects them against foreign competition
(b) It cushions them from the effects of events in other countries.
(c ) It opens up new market opportunities
(d) It increases the risk and uncertainty of operating in globalizing world economy.

79. Globalisatiion can create problem for business because

(a)It can result in more competition
WHATSAPP = 9906837425

(b) It increases vulnerability to political risk and uncertainty when operating abroad
(c ) It means that they can increase price
(d ) All the options are correct.

80. An environment which is increasingly complex and turbulent displays

(a) More orderly competition (b)More predictable demand
(c) A reduced risk of product obsolescence. (d) Increased speed of innovation

81. Which of the following is not a business opportunity generated by globalization?

(a) Access to low cost labour (b) Cheap international transport
HILAL AHMAD:

(c ) Currency crisis (d) Less stringent regulations of the Business Environment

82. Exploring the strategic implications of global warming is best described as -------
(a) An external environment analysis (b) Scenario planning
(c ) Futures forecasting (d ) A PESTLE analysis

83. PESTLE is an analytical tool which helps to undertake?

(a) An internal analysis (b ) An external analysis
(c )A competitor analysis (d)A strategic analysis

84. An analysis of the external environment enables a firm to identify

(a) Strengths and opportunities (b) Strength and weakness
(c ) Weakness and threats (d) Opportunities and threats

85. To determine a country’s attractiveness to business require

(a) A detailed analysis of elements in the macro environment
(b) An assessment of the political and financial risks of doing business in that country
(c ) An analysis of the competitive environment
30

(d) All of the above

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86. Secondary screening involves

(a) An external environmental analysis (b) Risk analysis
 31 | P a g e UGC NET-COMMERCE SESSION-2022

(c ) An external environment analysis and risk analysis (d) A competitor analysis

87. The home locations of most of the World’s large Multi National Companies is:
(a) North America and Europe (b) North America and Asia
(c ) Europe and South America (d) Europe and Asia

88. Multinational Corporations

(a) Always produce primary goods (b) Always produce manufactured goods
(c ) Always produce service (d) May produce primary or manufactured goods

89. ---------refers to highly educated and skilled people who migrate from poor developing countries To
wealthy industrial countries .
(a)Direct investment (b) Portfolio Investment
(c ) Brain drain (d) Transfer Pricing
WHATSAPP = 9906837425

90.An attribute that doesn’t contribute to Porters Diamond model is

(a) Government (b) Organised Trade Unions
(c ) Demand conditions (d) Factor conditions

91. Identify a factor that doesn’t play an important role in attracting FDI
(a)Laws, rules and regulations (b) Language
(c ) Cost of resources (d) Administrative Procedure and efficiency

92. The Country that attract the largest FDI inflow is –

(a) India (b) USA
(c ) China (d) Brazil
HILAL AHMAD:

93. General Electric follows ------ as its international operational strategy?

(a)Global (b) International
(c ) Transnational (d ) None of these

94. Which bank is called the Bank of Issue

(a) RBI (b) SBI
(c) IDBI (d) ICICI

95. Theoretically, what is the most significant organ of WTO

(a) The council for Trade in Goods (b) The ministerial conference
(c ) The General Council (d) The committee on Trade and Development

96. Where is provision made with regard to the WTO’s institutional arrangements?
(a) In the GAAT (b) In the WTO agreement
(c ) In the UN Charter (d) None of these

97. What is the role of IMF

(a) It control the budgets of National Govts
(b) It acts as a forum for international economics
31

(c ) It observes world exchange rated, balance of payments and multilateral payments

(d) None of these
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 32 | P a g e UGC NET-COMMERCE SESSION-2022

98.The Sale of Sub standard and hazardous goods under defined conditions constitute
(a) Restrictive Trade Practice (b) Unfair Trade Practice
(c) MRTP (d) None of these

99.. The Bretton wood twins consist s of IMF and ---------

(a) World Bank (b ) ADB
(c ) IDBI (d) ICICI

100.IMF commenced its operation in the year

(a) 1948 (b) 1950
(c ) 1947 (d) 1952

101. The number of institutions included in the world Bank Group is

(a) 5 (b) 4 (c) 9 (d) 7

102. If a member has less currency with IMF than its quota, the difference is called ------
WHATSAPP = 9906837425

(a) Reserve (b ) Margin

(c ) Reserve tranche (d ) None of these

103. As per 2006 estimates, India’s debt from IMF stands-------

(a) 150 billion dollars (b) 190 Billion dollars
(c ) 250 Billion dollars (d) 138 Billion dollars

104. When India became the member of IMF, the initial par value of Indian rupee was fixed at ----- grams
of Gold.
(a) 0.26801. (b) 0.364
(c ) 0.359 (d)0.865
HILAL AHMAD:

105.----- was the International reserve created by IMF to solve the problem of international liquidity
(a) SDR (b ) APR
(c ) SDC (d) None of these

106. How many currencies are linked with SDR?

(a) 9 (b) 7 (c ) 6 (d) 5

107. ---------refers to the external forces which have a beating on the functioning of the business.
(a) Environment (b) Culture
(c ) System (d) None of these

108. These are forces in the company’s immediate environment that affect the performance of the Co.
(a) Macro environment (b) Micro environment
(c )Technological environment (d) Natural environment

109. In this type of economic system, the Govt. intervention will be absent.
(a) Free enterprise economy, (b) Socialist economy
(d) Mixed economy (d) None of the above

110.--------is an economic system where the means of production are owned and managed by the State
(a) Capitalism (b) Socialism
32

(c ) Mixed Economy (d) Common economy

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111. India follows --------economic system

(a) Social (b ) Capitalist (c ) Mixed (d) None of these.
 33 | P a g e UGC NET-COMMERCE SESSION-2022

112. In ------economic system, there exists both private and public sector?
(a) Social (b ) Capitalist (c ) Mixed (d) None of these.

113. Who was the first chairman of the Planning Commission of India?
(a) Jawaharlal Nehru (b) Rajendraprsad (c ) Gandhiji (d)Ambedkar

114. Who is concerned with the approval of the planning decision formulated by the Planning Commision
(a) NDC (b) CDC (c ) Planning Board (d) None of these

115.When was the first industrial policy of India announced?

(a)April 6 1948 (b) April 9 1948 (c) March 6 1948 (d) April 1947

116.Who announced the Industrial policy of India for the first time?
(a) Gandhiji (b) Nehru (c ) Ambedkar (d) Subhash Chandra bose.

117. The industrial policy resolution of 1948 aimed at acceleration of ----- of the Country.
(a) Agricultural development (b) Industrial development
WHATSAPP = 9906837425

(c) Infrastructural development (d) None of these

118. The Industrial policy of 1948 divided the Indian industries in to -------------- catagories.
(a) 5 (b) 4 (c )8 (d) 6

119. Which Industrial Policy Resolution(IPR) is known as Economic Constitution of India?

(a) IPR 1964 (b)IPR 1976 (c ) IPR 1956 (d) IPR 1948

120. Which govt. announced the IP of 1980?

(a) Congress (b) Janatha (c ) BJP (d) UPA

121. Which IP abolished the Industrial licensing?

HILAL AHMAD:

(a) IPR 1956 (b) IPR 1964 (c ) IP 1991 (d) None of these

122. The agricultural income is fully exempted from Income tax—Is it true?
(a) False (b) Not Applicable (c ) True (d) Partially taxable

123. There are policies which are made to govern the import and export trade
(a) Export policies (b) Import Policies (c ) EXIM policies (d) None of these

124. The Govt. introduced the import liberalization policy in the year-----
(a) 1977- 78 (b) 1991-92 (c) 1988-89 (d) 2001-02

125. When was the EXIM policy announced for the first time?
(a) 1947 (b) 1985 (c ) 1991 (d) 1999

126. EPZ stands for -----

(a) Export Processing Zone (b) Export Promotion Zone
(c) External Promotion zone (d) None of these.

127. ---------concerned with the obligation and duties of business to the society?
(a) Social responsibility (b)Status (c ) Authority (d) None of these

128.Who conducted the social audit in India for the first time?
33

(a) JRD Tata (b) Birla (c ) Reliance group (d)State Bank

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129. -----------is a social movement seeking to augment the rights and powers of buyers?
(a) Consumer movement (b ) Consumerism (c ) Flows (d) None of these
 34 | P a g e UGC NET-COMMERCE SESSION-2022

130. In these types of NRI Accounts, the Principal as well as interest in non patriable ?
(a) NRNR A/c (b) NRO (c ) NRSR A/C (d) None of these

131. Which type of securities are bought and sold in open market operation?
(a) Pvt. Securities (b) Govt. securities (c ) Initial securities (d) None of these

132. ------ is the difference between market value of a security and the amount lent by banks against these
Securities?
(a) Margin o f safety (b ) Margin (c ) Loan amount (d) None of these.
133. The RB I introduced the credit authorization scheme in --------
(a) Nov 1965 (b ) Dec. 1968 (c ) 1948 (d) 1991

134. The term budget is derived from the French word ---- ----
(a) Boget (b) Bougette (c ) Bogeget (d) None of these
WHATSAPP = 9906837425

135. The Union budget of the coming financial year presented to the parliament on --------
(a) Last working day of February (b ) First working day of February
(c ) March first week (d) Last working day of March

136. Who is concerned with the presentation of Union budget?

(a) Prime Minister (b) Finance Minister
(c ) RBI Governor (d) Home Minister

137. Which Bill in concerned with the tax proposals of the Budget?
(a) Cash Bill (b) Finance Bill (c ) State Bill (d) None of these
HILAL AHMAD:

138.The Union Budget is divided in to ---------parts

(a) 2 (b) 3 (c ) 8 (d) 5

139. Which item of the budget is concerned with the current expenditure of Govt. on administration ?
(a)Capital expenditure (b) Revenue expenditure
(c ) Deferred expenditure (d) None

140. --------deals with the receipts from taxes, interest, dividend and profits
(a) Revenue receipts (b) Capital receipts
(c ) general receipts (d) Deferred receipts

141.Introduction to business wrote by --------

(a) Reinck (b) Schoeil (c ) Coper (d) Both A & B

142. A good environment is good business. Who said this?

(a) Dr. MS Swaminathan (b) Dr. SS Rao (c ) Dr, M. Sing (d) Dr. R. Rajan

143. Which one of the following cannot be included under the nature of relationship between business And
Environment ?
34

(a) Inter dependence (b) Dynamic (c ) Social change (D) Fixed

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 35 | P a g e UGC NET-COMMERCE SESSION-2022

144. External Environment of Business is ------

(a) Physical (b) Demographical (c ) Economic (d) All of these

145. Physical Environment includes-----

(a) Natural Resources (b) Climate (c ) Water (d) All of these

146. Natural Environment Includes-------------

(a) Water (b) Earth (c ) Air (d ) All of these

147. The Economic environment of a business includes?

(a) Economic system (b) Economic policies (c ) Economic conditions (d) All of these

148. Which of the following is not an essential feature of social environment?

(a) Competitiveness (b)Respect for the individual
WHATSAPP = 9906837425

(c )Better quality of life (d) Bailment

149.The New economic policy of India is precious gift of

(a) Dr. VS Rao (b) Dr. Manmohan singh
(c ) Mr. Jaswant Sing (d) Venkita Roy

150. Administrative contol contains ---

(a) Industrial Policy (b) Economic planning
(c ) GNP (d) GDP

OTHER IMPORTANT MCQs –

HILAL AHMAD:

1. The low income economies are sometimes referred to as ----------

(a) First world (b) Second world (c ) Third world (d) None of these
Ans : c

2. This is the Govt.’s strategy in respect of public expenditure and revenue which have a significant
Impact on business.
(a) Monetary policy (b) Fiscal Policy
(c ) Trade policy (d) Foreign exchange policy
Ans : b

3. CII stands for

(a) Confederation of Indian Industries (b) Condition of Indian Industries
(c ) Classes of Indian Industries (d) Civilians of Indian Industries
Ans : a

4. --------- is concerned with the withdrawal of State from an industry or sector, partially or fully
(a) Liberalization (b) Modernisation
(c ) Privatization (d) Globalisation.
Ans : c
35

5. In which year Govt. of India appointed the Rangarajan Committee on disinvestment in PSEs
Page

(a) 1990, (b) 1991 (c ) 1993 (d) 1996

Ans : c
 36 | P a g e UGC NET-COMMERCE SESSION-2022

6. The Govt. of India constituted a Public sector Disinvestment commission on------

(a) 15 March 1991 (b) 23 Aug 1993
(c ) 23 Sept.1993 (d) 06 May 1994
Ans : b

7. Which Act was replaced with the introduction of Competition Act 2002?
(a) FERA (b ) MRTP (c) POTA (d) None of these
Ans : b

8. Competition Act was enacted in the year-------

(a) June 2002 (b) Dec. 2002 (c ) January 1999 (d) None of these
Ans : b

9. Which committee recommended the enactment of Competition Act:

(a) High level Committee on competition policy and Law
(b) A Committee on Law and Order
(c ) A Central Committee for Research and Policy
WHATSAPP = 9906837425

(d) None of these.

Ans : a

10. Which policy is concerned with raising revenue through taxation and deciding on the level and
Pattern of expenditure?
(a) Monetary policy (b) fiscal Policy (c ) Cash policy (d) None of these
Ans : b

11. Who is responsible for presenting the Union Budget before the Parliament?
(a) Prime Minister (b) Finance Minister (c) RBI Governor (d) None of the above.
Ans : b
HILAL AHMAD:

12. ---------is concerned with all current expenditure of the Govt. on administration
(a) Revenue expenditure (b) Capital expenditure
(c) Total Expenditure (d) None of the above.
Ans : a

13. The Planning commission was set up in India in --------

(a) 1950 (b) 1951 (c) 1947 (d) 1952
Ans : b

14. Who is the President of National Development Council ?

(a) Finance Minister (b) Prime Minister
(c) Monteng sing Aluvalia (d) None of the above.
Ans : b

15. The intervening period between third and forth Five year plans is regarded as ---
(a) Plan period (b) Plan holidays (c ) Plan days (c) None of these
Ans : b

16. Which Govt. introduced the concept of ‘Rolling Plan’

(a) Manmohan govt. (b) Vajpayee (c) Janatha Govt. (d) Rao Govt.
Ans : c
36

17. GAAT was born in the year--------------

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(a) 1948 (b)1945 (c) 1947 (d) 1950

Ans : a
 37 | P a g e UGC NET-COMMERCE SESSION-2022

18. What was the predecessor of WTO?

(a) GAAT (b) IMF (c) ADB (d) None of the above
Ans : a

19. In which year WTO was formulated ?

(a) 1995 (b) 1948 (c )1991 (d) 1988
Ans : a

20. FEMA was passed in the year ---

(a) 1999 (b) 1989 (c) 2000 (d) 1997
Ans : a

21. ----------refers to regulation of credit for specific purpose or branches of economic activity?
(a) Credit control (b) Selective Control
(c) Bank control (d) None of these
Ans : b
WHATSAPP = 9906837425

22. SEZ stands for ----

(a) Special Economic Zone (b) Special Export Zone
(c) Socially Backward Zone (d) None
Ans : a
23. ------- is an Act to control and regulate the concentration of economic power to the common
detriment?
(a) IRDA Act (b) MRTP (c) ILO Act (d) FERA
Ans : b

24. Consumer Protection Act was came in to force-------

(a) 1985 (b) 1986 (c) 1999 (d) 1989
HILAL AHMAD:

Ans : b

25. --------consist of economic conditions, economic policies, industrial policies and economic
system:
(a) Business environment (b) Economic Environment
(c) Natural Environment (d) None
Ans : b

26. Indian Economy is an example of ------

(a) Capitalist economy (b) Closed economy
(c) Mixed Economy (d) None of these
Ans : c

27. ------- economy is not planned, controlled or regulated by the Govt.

(a) Closed Economy (b) Mixed Economy
(c) Free market economy (d) None of these
Ans : c

28. ------is the apex body of the economic planning in India?

(a) Planning Commission (b) Parliament
(c) Supreme Court (d) None of these
Ans : a
37

29. Globalisation refers to:

Page

(a) A more integrated and interdependent world (b) Lower income world wide
(c ) Less foreign trade and investment (d) Global warming
Ans : a
 38 | P a g e UGC NET-COMMERCE SESSION-2022

30. Globalisation is beneficial for firms because:

(a) It protects them against foreign competition
(b) It cushions them from the effects of events in other countries.
(c ) It opens up new market opportunities
(d) It increases the risk and uncertainty of operating in globalizing world economy.
Ans : c

31. Globalisation can create problem for business because:

(a)It can result in more competition.
(b) It increases vulnerability to political risk and uncertainty when operating abroad.
(c ) It means that they can increase price
(d ) All the options are correct.
Ans : a

32. Which bank is called the Bank of Issue:

(a) RBI (b) SBI (c ) IDBI (d) ICICI
WHATSAPP = 9906837425

Ans : a

33. Theoretically, what is the most significant organ of WTO:

(a) The council for Trade in Goods (b) The ministerial conference
(c ) The General Council (d) The committee on Trade and Development
Ans : b

34. In this type of economic system, the Govt. intervention will be absent.
(a) Free enterprise economy, (b) Socialist economy
(c) Mixed economy (d) None
Ans : a
HILAL AHMAD:

35. --------is an economic system where the means of production are owned and managed by the
State:
(a) Capitalism (b) Socialism
(c ) Mixed Economy (d) Common economy
Ans : b

36. India follows --------economic system:

(a) Social (b ) Capitalist (c ) Mixed (d) None of these.
Ans : c

37. In ------economic system, there exists both private and public sector?
(a) Social (b ) Capitalist (c ) Mixed (d) None of these.
Ans : c

38. Who was the first chairman of the Planning Commission of India?
(a) Jawaharlal Nehru (b) Rajendraprsad
(c ) Gandhiji (d) Ambedkar
Ans : a

39. When was the first industrial policy of India announced?

(a) April 6 1948 (b) April 9 1948
38

(c) March 6 1948 (d) April 1947

Ans : a
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40. There are policies which are made to govern the import and export trade:
(a) Export policies (b) Import Policies
 39 | P a g e UGC NET-COMMERCE SESSION-2022

(c ) EXIM policies (d) None of these

Ans : c

41. When was the EXIM policy announced for the first time?
(a) 1947 (b) 1985 (c ) 1991 (d) 1999
Ans : b

42. EPZ stands for -----

(a) Export Processing Zone (b) Export Promotion Zone
(c) External Promotion zone (d) None of these.
Ans : a

43. ---------concerned with the obligation and duties of business to the society?
(a) Social responsibility (b)Status (c ) Authority (d) None of these
Ans : a

44.Who conducted the social audit in India for the first time?
WHATSAPP = 9906837425

(a) JRD Tata (b) Birla (c ) Reliance group (d) State Bank
Ans : a

45. Who is concerned with the presentation of Union budget?

(a) Prime Minister (b) Finance Minister (c ) RBI Governor (d) Home Minister
Ans : b

46. Which Bill in concerned with the tax proposals of the Budget?
(a) Cash Bill (b) Finance Bill (c ) State Bill (d) None of these
Ans : b
HILAL AHMAD:

47. A good environment is good business. Who said this?

(a) Dr. MS Swaminathan (b) Dr. SS Rao (c ) Dr, M. Sing (d) Dr. R. Rajan
Ans : a

48. External Environment of Business is ------

(a) Physical (b) Demographical (c ) Economic (d) All of these
Ans : d

49. Physical Environment includes-----

(a) Natural Resources (b) Climate (c ) Water (d) All of these
Ans : d

50. Natural Environment Includes-------------

(a) Water (b) Earth (c ) Air (d ) All of these
Ans : d

51. The Economic environment of a business includes?

( a)Economic system (b) Economic policies
(c ) Economic conditions (d) All of these
Ans : d

52.The New economic policy of India is precious gift of:

39

(a) Dr. VS Rao (b) Dr. Manmohan singh

(c ) Mr. Jaswant Sing (d) Venkita Roy
Page

Ans : b

53. Capitalistic, Communistic and Mixed are the types of:

 40 | P a g e UGC NET-COMMERCE SESSION-2022

a) Economic System, b) Social System,

c) Cultural Attitudes, d) Political System.
Ans : a

54. Globalization refers to –

a) Lower incomes worldwide, b) Less foreign trade and investment,
c) Global warming and their effects, d) A more integrated and interdependent world.
Ans : d

55. IPR stands for –

a) Intellectual Property Rights, b) International Property Rights,
c) Internal Promotion Rights, d) Interior Promotional Rights.
Ans : a

56. MNC stands for –

a) Multi National Cooperation, b) Multi National Corporation,
c) Multi Nation Company, d) Multi National Collaboration.
WHATSAPP = 9906837425

Ans : a

57. The main promoter of trade liberalization was –

a) GATT, b) NAFTA, c) CEPTA, d) CISA
Ans : a

58. Which of the following is not the social responsibility of the business?
a) Promotion of markets, b) Promotion of green environment,
c) Promotion of education, d) Promotion of public health.
Ans : a

POINTS TO REMEMBER
HILAL AHMAD:

INDUSTRY:

1) Industrial policy Resolution 1948

> After independence the first industrial policy was declared on 6th April, 1948 by then union industry
minister Mr. Shyama Prasad Mukherjee.

> Resolution accepted importance of both public & private sector.

> This policy established a base for mixed & controlled economy in India.

> This policy divides the economy in four categories:

• Exclusive state monopoly

• State monopoly for new units

• State regulation

• The field of private enterprises..

Industries development and regulation act 1951

40

 An act was passed by parliament on Oct 1951 known as industries development regulation act
Page

1951.
 It came in to force on 8th may 1952.
 Main task was development and regulation of private sector.
 41 | P a g e UGC NET-COMMERCE SESSION-2022

 Protection of small Entrepreneurs.

 Prevention of monopoly.
 Balanced regional development.

Industries policy resolution1956.

 Also known as economic constitution of India.

 It was declared on 30th April 1956.

 Basic objective was socialist pattern of society.

 Every new policy accepted the 1956 industrial policy resolution as its base.

 Develop heavy industries & machines institutions, speed up industrialization and excelerate rate of growth
and expand public sector.

 >Reduce disparities of income and wealth, build up co-operative sectors, prevent monopoly &
WHATSAPP = 9906837425

concentration of wealth & income in the hands of a small number of individuals’.

 Stress was laid on co-operation between public & private sectors but more importance given to public
sector.

 Under this policy reservation of industries came.

 Reservation of industries means clear cut clarification of industries.

Industries policy statement 1969.

 For solving the shortcomings of licensing policy which was started in 1956.
HILAL AHMAD:

 Experts & industrialist told that licensing policy is serving just an opposite purpose.
 Reasons of licensing- exploitation of resources, price control of goods, checking concentration of
economic power, channelizing investment in to desired direction.
 Finally in 1969 a new industrial licensing policy was allowed.
 Under this MRTP act came known as monopolies restrictive trade practices act with a limit of 25
crore. Green field ventures and take- over of other firms as per MRTP act came to be known as MRTP
companies.

Industrial Policy statement 1973.

 Core industries such as iron, steel, cement, coal, electricity in future known as basic
industries and infrastructure industries.
 Schedule A is not a part of compulsory licensing policy out of 6 crore industries. Firm apply for
licensing policy having assets of 25 crore or more.
 Concept of joint sector was developed, partnership among center, state & private sector.
 Government has been facing foreign exchange regulation so in 1973 FERA (Foreign Exchange
Regulation Act) came, known as Draconian Act because it hamper the growth and modernization of
industry.
 MNCs allowed to set-up their subsidiaries.
41

Industrial policy statement 1977

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 Established by Janta Government.

 This statement is opposite of industrial policy statement 1973.
 42 | P a g e UGC NET-COMMERCE SESSION-2022

 Foreign investment were prohibited which promote foreign investment through technology
transfer.
 In 1977 concept of tiny enterprises came.
 Redefinition of small and cottage industries and emphasis on village industries.
 DIC (district industries center) were set up to promote small & cottage industries.
 Democratic decentralization at khadi and village industries
 Attention on prices of essential commodities of everyday use.

Industrial policy resolution 1980

 Revised of industrial policy statement 1977.

 Foreign investment through technology transfer allowed.
 MRTP limit 50 crores.
 DIC continued.
 Licensing was simplified, liberal attitude towards expansion of private sector.
WHATSAPP = 9906837425

Industrial policy resolution 1985 & 1986

 Foreign investment further simplified, equity holding of MNCs in Indian subsidiary 49% with
Indian partnership holding 51% share.
 MRTP limit 100 crores.
 Compulsory licensing of industries.
 Sunrise industries such as telecommunication, computerization & electronics.
 Modernization & profitability of public sector.
 Imported raw materials got boost, use of foreign exchange permits in area of FERA.
 Many new technologies & scientific approach for agriculture.
HILAL AHMAD:

NEW INDUSTRIAL POLICY 1991

In June 1991 Narsimamh Rao government took over charge and new industrial policy came under the
liberalized form Sever BOP crisis, gulf of war higher oil prices, depleting fastly foreign reserves,
inflation peaking and gross fiscal deficit also.

Government declared broad changes in industrial policy on 24th June 1991.

De reservation of industries came of three industries-

 Atomic energy ( nuclear, mining, fuel fabricant)

 Arms ammunition, Defense equipment and warship
 Railway transport
Delicensing of industries came

 Distillation & brewing of alcoholic drinks

 Cigar cigarettes and other substitutes of prepared tobacco
 Electronic, aerospace and all types of defense equipment
 Industrial explosive including match box, detonating fuses, safety fuses, gunpowder and
nitrocellulose.
 Hazardous chemicals
42

 Foreign exchange regulation act was liberalized on 8th January 1993.

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 FERA was replaced by FEMA (foreign exchange management act) in Dec 1999
 BIFR (Board for industrial and financial reconstruction) was established under sick industrial
companies act 1985. The board started its functions from 15th may 1987.
 43 | P a g e UGC NET-COMMERCE SESSION-2022

 Process of disinvestment started in public sector in 1991-1992

 To minimize the financial burden on public sector enterprises the government has started
voluntary retirement scheme for the employees by giving full compensation to employees. This is called
golden handshake scheme.
 To evaluate the problems of financial sickness of small industries the government had constituted
Nayak committee which submitted its report in September 1992.
 NELP- New exploration licensing policy 1999

ECONOMIC PLANNING

 Planning commission is a non –constitution body.

 It is central body for making plans in India.
 A book entitled Planned Economy For India was published in 1934 by Sir M Vishweshwarya.
 Indian national congress constituted a National Planning committee in 1938 to discuss the
requirement & possibility of planning in India. Pundit Jawaharlal Nehru was the president that time of this
committee
In 1944 a plan called Bombay Plan was presented by eight industrialist of Bombay. There after
WHATSAPP = 9906837425


in same year 1944 Gandhian plan by Mannaragan in 1945, the peoples plan by labour leader MN Raj
and in 1950 the Sarvodya plan by Mr. Jai Prakash Narayan were presented.
 Planning commission constituted on 15th march 1950
 First chairman of planning commission was Pt. Jawaharlal Nehru.
 Prime minister of India is the ex-officio chairman of planning commission. There is also a deputy
chairman of Planning Commission.
 The National development council NDC was formed on 6th august 1952.
 Format of five years plan came in 1951.
 Concept of planning commission is derived from Russia USSR.
 It was constituted by union cabinet on the proposal of a member of union parliament.
 Planning commission is approved by NDC (national development council).
HILAL AHMAD:

 NDC is non-statutory body which is built to co-operate between states & planning commission.
 Planning commission is in concurrent list.
 The member of planning commission are appointed by the government.
 Second five year plan- Prof P C Mahalanbosis.
 Eleventh five year plan- Prof C Rangaranjan.

1) First five year plan (1st April 1951 to 31st march 1956).

 Rehabilitations of refugees from Pakistan.

 To check inflationary tendency.
 Agriculture was given a highest priority.
 To solve food problems.
 Reconstruct economy damaged due to war.
 Revival of small and cottage industries.
 Community development programme (NDC came on 6th Aug. 1952).
2) Second five year plan (1956 to 1961).

 Prep by Prof P C Mahalnobis.

 Basically industrial policy resolution 1956 based on socialist pattern of society.
 Faster growth of national income.
 Rapid industrialization with special emphasis on basic and heavy industries.
43

 To reduce inequality of income & wealth.

 Expansion in employment opportunities.
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 Steel plant at Bhilai, Rourkela, Durgapur.

 Shortage of foreign exchange.
3) Third five year plan (1961 to 1966).
 44 | P a g e UGC NET-COMMERCE SESSION-2022

 To make Indian Economy self-reliant and self -sustain economy.

 Development of Agriculture.
 Self-reliance in food grains.
 Balanced regional development.
 Two war Indo-china (1962) Indo-Pak (1965) as ill- fated plan.
 India also faced drought in 1965-1966.
 Reduce inequality of Income & wealth.
 Optimum utilization of country’s labour power.
4) Three Annuals plan (1966 to 1969).

 To overcome the ill effects of war.

 To solve the food problem.
 To prepare base for fourth plan.
 Green revolution (1966-1967) to develop new varieties of seeds.
 Currency devaluation (1966 June).
 Economist called this period 1966 to 1969 as plan holiday, also known as GADGIL PLAN.
5) Fourth five year plan (1969 to 1974).
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 Growth with stability and progress towards self-reliance.

 Establishment of buffer stock.
 Implement family planning.
 To develop public sector, reduce regional imbalance.
 Balanced development of all the sectors.
 MRTP act came.
 Oil crisis, population explosion, war with Pakistan, 14 banks nationalized.
6) Fifth five year plan (1974 to 1979).

 Janata government declared this plan closed one year prior to its schedule.
 Eradication of poverty (GRABI HATAO).
HILAL AHMAD:

 Attainment of self-reliance.
 National programme for primary education, drinking water, medical facilities in rural areas,
nourshing food, and land for houses of landless labor, rural roads, electrification, cleanliness.
 Policy of import substitution and export promotion.
 Prepared by planning commission.
 Reduce regional economic, social inequality, unemployment problem.
 Prohibition of unnecessary consumption price wage policy.
 Janata government terminated in 1978.
7) Annual/ rolling plan (1978 to 1980).

 >Janata Government fail in 1978.

 Reduce poverty.
 Reduce unemployment.
 Also called rolling plan.
8) Sixth five year plan (1st April 1980 to 31st March 1985).

 Generate employment.
 Control population explosion.
 Efficient use of resources.
 Modernization.
 Encourage people to participate in education.
 Policy adopted to control population explosion.
44

 Rapid efficient utilization of energy resources.

 Indian economy made all round progress.
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 Integrated rural development.

 Minimum needs programme.
 Industrial development regulation.
 45 | P a g e UGC NET-COMMERCE SESSION-2022

 Drought (1984-85).
9) Seventh five Year plan (1st April to 31st march 1990).

 Progress towards a social system based on equality & justice.

 Prepare a firm base for technological development in industrial & agriculture.
 Ecological & environment protection.
 Productive employment.
 First time private sector was given priority.
10) Annual plan (1990-1992).

 Due to economic crisis.

 Political instability at center.
 New industrial policy was announce.
 Considered the beginning of large scale liberalization in Indian economy.
 LPG Policy come under this
11) Eighth five year plan (1992 to 1997).

 Human resource development.

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 Primary education, drinking water, health. Vaccination in all villages & complete elimination of
scavengers.
 Eliminate illiteracy among people of ages 15-35 years.
 Universalization of primary education & 100% literacy in the age 06 to 14 years.
 Achieving full employment by the end of century.
 Sufficient employment opportunity.
 PMRY- Pradhan Mantri Rojgar Yojana and many more Yojanas come.
 Basic infrastructure (energy transport, communication, irrigation)
12) Ninth five year plan (1997 to 2002)

 Growth with equity and distributive justice.

HILAL AHMAD:

 Equitable distribution and growth with equality.

 To give priority to the development of agriculture and villages for eradicating poverty.
 To accelerate pace of economic development by keeping the price stable & under control.
 To create sufficient productive employment.
 Improve lifestyle, remove environmental imbalances.
 To ensure provision of food and nourishment to all and especially to weaker sections of society.
 To provide the basic minimum services like clean drinking water, primary health care facility,
universal primary education & housing (basic facilities).
 To control population growth rate.
 To encourage & develop the mass participation institutions, co-operative & voluntary sections.
 To provide strengthen to women especially the weaker sections of SC & ST & backward castes,
handicap.
 NEAS- national employment assurance scheme.
 To ensure better life, improve living of standard of people
13) Tenth five year plan (2002 to 2007).

 Growth with human development.

 Reduction of poverty ration by 5% points by 2007 and by 15% points by 2012.
 Providing gainful & high quality employment at least to addition to the labor force over the 10th
plan period.
 All children in school by 2003, all children to complete 5yrs of schooling by 2007.
 Reduction in gender gap in literacy & wage rate by at least 50% by 2007.
45

 Reduction in decadal rate of population growth between 2001 & 2011 to 16.2%.
 Increase in literacy rate to 75% within the plan.
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 Reduction of infant mortality (IMR) to 45 per 1000 live births by 2007 and to 28 per 1000 lives by
2012.
 Reduction of maternal mortality rate (MMR) to 2 per 1000 live birth by 2007 as to 1 per 1000 live.
 46 | P a g e UGC NET-COMMERCE SESSION-2022

 Increase in forest and tree covers to 25% by 2007 and 33% by 2012.
 All villages to have sustained access to potable drinking water within the plan.
 Cleaning of all major polluted river by 2007& other by 2012.
 Doubling the per capita income in next 10 years.
14) Eleventh five year plan (2007 to 2012).

 It setup the economic growth rate at 9% but it was revised 8.1% due to economic crisis by Mr.
Montek Singh Alluwaliah.
 Increase in agricultural GDP growth rate 4% per year.
 Fast sustainable & more inclusive growth.
 Industrial growth 9.2% in 10th plan and want between 10% and 11%.
 Manufacturing 12% .58 million new work opportunities.
 Reduce educated unemployment to 5% below.
 Increase literacy rate for persons of age 7 or more to 85%.
 Reduce total fertility rate 2.1% provide clean drinking water.
 Reduce malnutrition between child 0-3 years, reduce anemia among women & girls.
 Raise sex ratio for age group 0-6 to 935 by 2011-12 & 950 by 2016.
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 33% beneficiaries of government schemes to girls & women.

 Ensure electricity connection to all village & BPL family by 2009.
 Provide telephone by Nov 2007 and broadband connectivity by 2012.
 Increase forest area by 5% points.
 Much stress on agriculture (4%).
 Promoting industrial (10-11%).
 Focus on service sector (9-11%) 15).
15) Twelve five year plan (2012 to 2017).

 Enhancing skills and faster growth & generation of employment.

 Managing the environment.
 Market for efficiency & inclusions.
HILAL AHMAD:

 Decentralization empowerment & information.

 Securing energy future for India.
 Rural transformation and sustained growth of agriculture.
 Improved access to quality education.
 Better preventive, curative health care as government providing free treatment to pregnant
women.
 Vision is of rapid, sustainable and more inclusive growth.
 Enhancing the capacity for growth- today GDP is 8% increase it to 9% or 10%, mobilization of
investment resources, better allocation of resources, higher investment in infrastructure through public &
PPP, efficient use of public resources.
 Enhancing skills and faster generation of employment.
 Managing the environment.
 Market for efficiency & inclusion.
 Decentralization , empowerment & information.
 Technology& innovation.
 Securing the energy future for India.
 Accelerated development of transport infrastructure.
 Rural transformation & sustained growth of agriculture.
 Managing the environment.
 Improved access to quality education.
 Better preventive & curative healthcare.
46

 GDP= 8%, agriculture – 4%, manufacturing- 7.1%, industrial- 7.6%, service sector- 9%.
 Every state must have a higher average growth rate in 12th plan.
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 Head count ratio of consumption poverty to be reduced by 10% points over the preceding estimate.
 Generate 50 million new work opportunities in the non-farm sector & provide skill certification to
equivalent.
 47 | P a g e UGC NET-COMMERCE SESSION-2022

 Mean year of schooling to increase to 7 year by end of 12th plan.

 Enhance access to higher education by creating two million additional seats for each age cohort
aligned to skill needs of economy.
 Elimination of gender & social gap in school enrollment (between boys & girls, SC & ST).
 Reduced IMR to 25 per 1000 live and MMR to 1 per 1000 lives, improve sex ratio (0-6 yr.)
to 950 by end of 12th plan.
 Reduced total fertility rate to 2.1 by end of 12th plan.
 Reduced under- nutrition among children age (0-3 yr. to half of NFHS-3 levels by end 12th plan.
 Increase investment in infrastructure as per of GDP to 9%.
 Increase gross irrigated area 90 million hectare to 103 million hectare.
 Provide electricity to all villages.
 Upgrade national & state highways to minimum 2 lane standard.
 Complete eastern & western dedicated freight corridors.
 Increase rural tele density to 70%.
 Ensure 50% of rural population has access to 55 LPCD piped drinking water supply & 50 %
Gram Panchayat achieve the nirmal gram status.
 Increase green cover by 1 million hectare.
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 Add 30000 MW of renewable energy capacity.

 Reduce emissions intensity of GDP in line with the target of 20% to 25% reduction by 2020 over
2005 levels.
 Provide access to banking services to 90% Indian houses.
 Major subsidies & welfare related beneficiary payments to be shifted to a direct cash transfer by
end.
List showing names of Chairman, Planning Commission

 JAWAHARLAL LAL NEHRU MARCH, 1950 27.05.64

 LAL BHADUR SHASHTRI JUNE, 64 JAN,66
 SMT. INDIRA GANDHI JAN, 66 24.03.77 JAN, 80 31.10.84 D) MORARJI DESAI 25.03.77 09.08.79
 CHARAN SINGH 10.08.79 JAN, 80
HILAL AHMAD:

 RAJIV GANDHI NOV,84 DEC, 89 G) V.P. SINGH 22.12.89 NOV, 90

 CHANDRA SHEKHAR DEC, 90 24.6.91
 P.V. NARASIMHA RAO JUNE 1991 15.05.96
 ATAL BEHARI VAJPAYEE 16.05.96 31.05.96 K) H.D. DEVE GOWDA 01.06.96 20.04.97
 I.K. GUJRAL 21.04.97 18.03.98
 ATAL BIHARI VAJPAYEE 19.03.98 22.05.2004
 DR. MANMOHAN SINGH 22.05.2004 …………
 DR. MANMOHAN SINGH ……………. 26.05.2014
CONSUMER PROTECTION ACT 1986

 It was introduced to protect the interest of the consumers & to check their exploitation from
producers & consumers.
 It came into force on 1st July 1987 all over the states except Jammu & Kashmir.
 It is also known as COPRA
 Under this act consumer’s forum have been constituted at district, state and national level.
 COPRA was amended in 1993 and 2002
MISCELLANEOUS: Various committee

 Hazari committee – Industrial policy.

 Subimal dutt committee- Industrial licensing.
 Abid Hussain committee- small scale industry.
C Rangaranjan- committee on disinvestment.
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
 Arjun sengupta- MOU.
 AC shah committee- NBFC.
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 Bimal Jalan committee- market infrastructure instruments.

 Malegam committee- micro finance.
 48 | P a g e UGC NET-COMMERCE SESSION-2022

 Birla committee- corporate governance.

 Kirti parekh committee- petroleum products.
 Chaturvedi committee- national highways.
 SR Hashim committee- urban poverty.
 Abhijit sen- wholesale price index.
 C Rangaranjan- services price Index.
 Abid hussian committee- developments of capitals markets.
 Damodaran committee- customer service in banks.
 Khandelwal committee- human resources in commercials banks.
 Patil committee- corporate debt.
 Vk Sharma committee- credit to marginal farmers.
 Sarangi committee- NPAs.
 Khanna committee- RRB.
 Dantawala committee- lead bank scheme.
 Gadgil committee- financial inclusions.
 S C Sahoo committee – capital market.
 FKF Nariman committee- branch expansion programme.
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 Khusro committee- small and cottage industry.

 N Narsimhan committee- establishment of RRBs.
 B Shivraman committee- establishment of NABARD.
 Chakravarty committee- review of monetary system in banking industry.
 A Ghosh committee- priority sectors and 20 point programme.
 Uk Sharma- review of lead bank scheme.
 Tiwari committee- industrial sickness and rehabilitation of sick units.
 Vaghu committee- money market.
 GS Patel- management of stock exchange.
 Sm Kelkar- RRB.
 M N Goporia committee- customer service requirement.
HILAL AHMAD:

 M Narsimhan committee- financial sectors reforms.

 S A Dave committee- functioning of mutual funds.
 Raj Chelliah committee- tax reforms.
 Ghosh- frauds and malpractices in banks.
 Tarapore committee- capital account convertibility.
 LC Gupta committee- financial derivatives.
 M S Verma committee- measures for weak banks.
 Goswami committee- industrial sickness and exit policy.

EXPECTED MCQS
1. _________________ Consists of economic conditions, economic policies, industrial policies and
economic system
a. Business environment c. natural environment
b. Economic environment d. none of the above
Answer: B

2. An analysis of the external environment enables a firm to identify

a. Strength and opportunities c. weakness and threats
48

b. Strength and weakness d. opportunities and threats.

Answer: D
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3. These are forces in the company’s immediate environment that affect the performance of the Co.
a. Macro environment c. technological environment
 49 | P a g e UGC NET-COMMERCE SESSION-2022

b. Micro environment d. natural environment

Answer: a

4. In this type of economic system, the gove intervention will be absent

a. Free enterprise economy c. mixed economy
b. Socialist economy d. none of the above
Answer: a

5. ________ is an economic system where the means of production are owned and managed by the state
a. Capitalism c. mixed economy
b. Socialism d. common economy
Answer: b

6. The foreign exchange management act (FEMA), 1999 came into effect from
a. 2nd December 1999 c. 1st January 2000
b. 9th December 1999 d. 1st june 2000
Answer. d
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7. Which of the following are objectives of FEMA 1999

a. To consolidate and amend the law relating to foreign exchange of India.
b. To promote the orderly development and maintenance of foreignexchange markets in india.
c. To facilitate external trade and payments.
d. All of the above.
Answer. d

8. Consider the following statements:

1. According to the provisions of FEMA, 1999, cash in the form of coins and bank notes are included in
currency notes.
HILAL AHMAD:

2. According to the FEMAs provisions, ATM cards are not included in currency.
3. All money orders can be treated as currency.
Which of the above statements are not true.

a. Only 1 c. only 1 & 3

b. Only 2 d. only 3
Answer. b

9. According to the section 2 of the FEMA 1999, the term ‘transfer’ includes
a. Sales b. loan c. mortgage d. all of the above
Answer. d

10. Which of the following transactions shall not be included in the ‘current account transactions’?
a. Expenses in connection with foreign travel.
b. Expenses in connection with medical case of parents
c. Capital account transactions.
d. Payments due as interest on loans and as net income from investments.
Answer c

11. According the FEMA 1999, all postal notes, postal orders, cheques, drafts etc. shall be treated as
a. Cash instruments
b. Currency notes
49

c. Currency
d. Non-cash instruments
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Answer. c
 50 | P a g e UGC NET-COMMERCE SESSION-2022

12. According to the section 2 (c) of the FEMA, 1999, which of the following has been included as ‘authorised
person’ to deal in foreign exchange or foreign securities?
a. Off-shore banking unit
b. Money changer
c. Authorized dealer
d. All of the above
Answer. d

13. In India, who is empowered to issue directions to authorized persons?

a. SEBI b. RBI c. IRDA d. FEMA
Answer. b

14. Which sections of the FEMA, 1999 describes provisions regarding ‘amount of penalty’?
a. Section 11(6) c. section 13(1)
b. Section 12(3) d. section 14(2)
Answer c
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15. According to the FEMA, 1991, if any person contravenes any provisions of this Act, he shall be liable to a
penalty?
a. Up to thrice the sum involved in such contravention where such amount is quantifiable.
b. Up to Rs. 2 lakh where the amount is not quantifiable.
c. Both (A) and (B)
d. Up to twice the sum involved in such contravention where such amount is quantifiable.
Answer. c

16. According to FEMA, 1999, who is empowered to appoint the ‘Adjudicating Authority’.
a. The central government
b. The reserve bank of India.
HILAL AHMAD:

c. The SEBI
d. Any of the above.
Answer a

17. Consider the following statements:

1. Every adjudicating authority shall have the same powers of a criminal court.
2. The central government can specify the jurisdictions of each adjudicating authority.
3. An appeal against the orders of adjudicating authority may be filled to the special director
Which of the above statements are not true.

a. 1 & 2 b. only 1 c. only 3 d. 1 & 3

Answer. B

18. To hear appeals against the orders of the ‘Adjudicating Authority’ how many special directors amy be
appointed?
a. Only one b. only two c. only three d. one or more as per requirement.
Answer: d

19. An appeal against the order of ‘adjusicating authority’ shall be filed to the ‘appellate tribunal’ within a
period of
a. 40 days b. 45 days c. 50 days d. 30 days.
Answer: b
50

20. Which of the following statements is not correct?

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a. The benches of the appellate tribunal shall ordinarily sit at Mumbai.

b. A bench may be constituted by the chairperson with one or more members.
 51 | P a g e UGC NET-COMMERCE SESSION-2022

c. A person shall not be qualified for appointment as the chairperson unless he is or has been or is qualified
to be, a judge of a high court.
d. The member shall hold office for a term of 5 years.
Answer: a

21. The chairperson or a member may resign to.

a. The RBI b. the FEMA c. the central government d. the SEBI
Answer: c

22. K.K. Sharma is an axporter of umberllas, what are the main duty or duties of Mr. Sharma under the FEMA,
1999?
a. To furnish the information relating to his toral business
b. To furnish the information relating to such exports
c. To furnish the information relating to realization and repatriation of foreign exchange on such exports
d. Both (A) and (B)
Answer: d
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Consumer Protection Act-1986

1. In India, the consumer protection axt-1986 (COPRA) was passed on
a. 1st December 1985 c. 25th December 1985
th
b. 5 December 1985 d. 1st January 1986

2. The consumer protection Act- 1986 came into force on

a. 1st April 1986 c. 1st janury 1987
b. 15 april 1986 d. 15th april 1987
HILAL AHMAD:

3. Which of the following is a correct statement?

a. The COPRA extends to the whole of India.
b. The COPRA shall apply to all goods and services.
c. The COPRA was amended in the year 2011.
d. None of the above.

4. Consider the following statements:

1. Services rendered under a contract of personal service is covered under definition of ‘service’ in the
COPRA 1986.
2. According to the provisions of the consumer protection act 1986, a person who receives medical
treatment in a government hospital is not a consimer.
a. Both the statements are incorrect.
b. Both the statements are correct.
c. First is correct, but second is incorrect.
d. Second is correct but first is incorrect.

5. According to the COPRA, the term ‘person’ may includes

a. a registered or unregistered firm
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b. a Hindu undivided family

c. a cooperative society
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d. all of the above

 52 | P a g e UGC NET-COMMERCE SESSION-2022

6. the COPRA 1986 provides for establishment of ‘consumer protection councils’

a. to promote the rights of traders.
b. To protect the rights of governments
c. To promote the district forums in the country
d. To promote and protect the rights of consumers.

7. Every consumer has a right to

a. Remuneration
b. Consumer education
c. Participation in the meeting
d. All of the above

8. The main objectives of the central consumer protection council are

a. The right to be protected against the marketing of goods and services which are hazardous to life and
property
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b. The right to consumer education

c. The right to be assured
d. All of the above

9. The state government shall establish for every district, by notification, a council to be known as the
a. District court
b. District board
c. District consumer protection council.
d. All of the above
HILAL AHMAD:

10. District forum is a

a. Redressal agency c. board
b. Risk analysis agency d. all of the above

11. Who shall be president of a district forum?

a. President of India.
b. District judge
c. Indain administrative officer
d. None of the above

12. Which is the term of consumer protection act?

a. Complain c. penalities
b. Complainant d. all of the above

13. Who is a complainant?

a. A consumer c. idiot
b. President of india d. lunatic
52

14. Manufacturer means a person who

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a. Sale the product and services

b. Sale the moveable goods and services
 53 | P a g e UGC NET-COMMERCE SESSION-2022

c. Makes or manufacturers any goods or parts thereof

d. All of the above.

15. District forum is established by

a. The collector
b. The surpanch
c. The state government
d. The consumer

16. State commission is established by the

a. State government c. president
b. Central government d. minister

17. National commission is established by the

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a. State government c. president

b. District court d. central government

18. Which are consumer forum?

a. District forum c. national commission
b. State commission d. all of the above

19. The maxium age limit of a member of national commission is

a. 65 years b. 70 years. C. 75 years d. 80 years.
HILAL AHMAD:

20. National commission can entertain complaint claiming

a. Upto Rs 20 lakh c. upto Rs 1 crore
b. Upto Rs 50 lakh d. exceeding Rs 1 crore

21. The number of rights of a consumer vide section of the consumer protection act, 1986 is
a. 2 b. 4 c. 6 d. 8

22. A person who is or has been a judge of a high court may be president of
a. District forum c. national commission
b. State commission d. none of the above

23. District forum in a district, can be

a. One b. more than one c. only two d. only three

24. Goods includes

a. Books c. newspares
53

b. Furniture or magazine d. all of these

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25. National commsiion’s jurisdiction extends to the

a. Whole of india c. whole of district
 54 | P a g e UGC NET-COMMERCE SESSION-2022

b. Whole of state d. none of the above

26. The provision for establishment of a ‘district consumer protection council’ was made by the year
a. 1988 b. 1993 c. 2002. D. 2008

27. Any person aggrieved by an order made by the ‘district forum’ may prefer an appeal against such order
to the
a. Collector of the district c. national commission
b. State commission d. none of the above

28. The district forum shall have the same powers as are vested in a
a. Civil court c. both a & b
b. Criminal court d. none of the above
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29. Which of the follwong is incorrect statement?

a. The national commission is a independent insititution
b. The national commission has administrative control over the state commission
c. A person who is or has been judge of high court may be appointed the president of national commission
d. A member of district forum can hold up to the age of 65 years.

ANSWER KEYS:
1=B 2=D 3=B 4=D 5=D 6=D 7=B 8=D 9=C 10=A
HILAL AHMAD:

11=B 12=D 13=A 14=C 15=C 16=A 17=D 18=D 19=B 20=D
21=C 22=B 32=B 24=D 25=A 26=C 27=B 28=C 29=C

Practice sets
1. A human being takes birth in which situation period and country and servive for his life is known as its
a. Society c. family
b. Environment d. none of the above

2. Business environment is formed by those institutions and power on which business have ______ control
a. Complete c. no
b. Very less d. none of these

3. _____ of business activities is done to business environment.

a. Management c. coordination
b. Planning d. none of these
54

4. Which of the following is not studied in business environment?

a. National income c. management of business function
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b. Cultural customs d. all of the above

 55 | P a g e UGC NET-COMMERCE SESSION-2022

5. Factors of business generally depends on which environment?

a. Social c. human
b. Natural d. physical

6. Which of the following is not a form of business environment?

a. Partnership c. joint capital company
b. Monopoly trade d. employees

7. Business environment is more descriptive and _____

a. Simple c. complex
b. Large d. none of these
8. ______ are the main features of business environment?
a. Moving c. comples
b. Large d. none of these
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9. Result of technological environment in business environment is

a. E-commrerce c. both a & b
b. E-banking d. none of these

10. Which of the following statement is not true about business environment?
a. It effects working capacity of business
b. Business environment always changes
c. It affects operation of business
d. A businessman had complete control over business environment.
HILAL AHMAD:

11. Analysis of policies is done on the basis of

a. Forecasting c. both a and b
b. Change according to time d. none of these

12. Which of the following is the part of development of competitive ability?

a. Product quality c. least customer preference
b. Ognorance of cost d. all of the abve

13. _______ are a feature of the micro environment of an organisation.

a. Legal factors c. social factors
b. Economic factors d. customers

14. Characteristics such as age, income or gender are examples of

a. Household patterns c. income distribution
b. Demographics d. social cultural environment
55

15. Which of the following is a feature of the micro environment of an organisation.

a. Distribution channel factors
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b. Social factors
c. Economic factors
d. All of the above
 56 | P a g e UGC NET-COMMERCE SESSION-2022

16. Globalization is an example of which macro environment factor?

a. Economic c. political
b. Social d. technological

17. Which of the following is not an environmental force, which must be monitored by marketers?
a. Demographic c. political legal
b. Natural d. mega trends

18. ______ are features of macro environment.

a. Intermediaries c. competitors
b. Customers d. legal framework
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19. Which of the following is not an element of the micro environment of business?
a. Suppliers c. trade policy
b. Competitors d. public

20. The external envoronemnt is composed of

a. The general and task environment
b. The task environment and the cultural environment
c. The global environment and the ecological environment
d. It enhance vulnerability of political risk.
HILAL AHMAD:

21. Which of the following is element of internal environment?

a. Financial institution c. policies and objectives
b. Customers d. all of the above

22. Which of the following is not a part of economic environment?

a. Economic policy c. economic inequality
b. Financial market d. all of the above

23. One of the features of the economic environment is

a. Tradition c. life
b. Society d. public policies

24. Which of the following element determine economic environment of the country?
1. Economic system 3. Money & capital market
2. Policies 4. Social cost
Select the correct answer using the codes given below

a. Both 1 and 2 c. only 3

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b. Both 2 and 3 d. all of the above

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25. China is an example of a ______ system

a. Mixed economy c. capitalism
 57 | P a g e UGC NET-COMMERCE SESSION-2022

b. Socialist d. none of these

26. Laissez daire policy is adopted in

a. Socialistic economic system
b. Capitalistic economic system
c. Mixed economic system
d. Communist economic system

27. Economic policy is the catalyst component of

a. Economic environment c. social environment
b. Moral environment d. legal environment

28. Relation between economic environment and policy is

a. Work and reason c. analog and factor
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b. Reactor and analog d. none of these

29. Favourable investment on private investment is called

a. Effect of fiscal policy c. effect on public credit policy
b. Limits of fiscal policy d. none of the above

30. Which policy helps in modifying investment structure of an economy

a. Monetary policy c. budget
b. Fiscal policy d. foreign trade policy
HILAL AHMAD:

31. Which of the following is not an equipment of monetary policy?

a. Activities of open market c. legal liquidity ratio
b. Cash reserve ratio d. deficit financing

32. Reason of decline of monetary policy is

a. Wide non-monetary region C. Measuring credit money
b. Flow of black money D. All of the above

33. Which function is not performed by the government for promotion of economic environment?
a. Nature the mentality of country’s development
b. Exploitation of environment
c. Effects proper utilization of resources
d. All of the above

34. Which among the following is an essential feature of mixed economy?

a. Co-existence of small scale and large scale industries
b. Co-existence of private and public sectors
c. Assigning equal importance to both agriculture an heavy industries.
57
Page

35. _______ is the economic system whereby the state holds broad powers to serve the public interests, it
decides what goods and services are produced and in what quantities and demand typically exceeds
supply.
 58 | P a g e UGC NET-COMMERCE SESSION-2022

a. Centrally planned socialism

b. Market socialism
c. Centrally planned capitalism
d. Market capitalism

36. Which of the following statement is incorrect?

a. Economic system is not the feature of mixed economy.
b. Price mechanism is not affective in socialist economy.
c. Classless society is a feature of socialist economy.
d. Socialism is an universal economic system.

37. Which of the following is not the objective of fiscal policy in India?
a. Enhances liquidity in economy.
b. Promote employment opportunities
c. Promote price stability
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d. Remove income an asset unequality

38. The _____ environment is composed of laws, government agencies an pressure groups?
a. Demographic c. social-culture
b. Economic d. political legal

39. Which one of the following service is not covered under consumer protection act?
a. The service of teacher
b. The service of lawyer
HILAL AHMAD:

c. The service of doctor

d. The service of banker

40. A central consumer protection council established by the

a. State government c. parliament
b. Central government d. president of India

41. Which of the following is not a part of machinery that settkes undustrial disputes?
a. Wage court c. conciliation officers
b. Works committee d. board of conciliation

42. The redressal form of consumer consists of

a. National consumer forum c. both a & b
b. District consumer forum d. none of the above

43. A district forum should not consist of

a. A person who is qualified to be a district judge who shall be its president
b. A lady social worker
58

c. A person who is or has been judge of a High Court.

d. None of the above
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44. Which of the following is not a way to implement CSR by organisation?

 59 | P a g e UGC NET-COMMERCE SESSION-2022

a. Environment sustainability
b. Energy conservation
c. Community involvement
d. Ethical marketing process

45. In relation in the ‘veil of incorporation’ that is a feature of a limited company’s separate legal
personality, in which of the following circumstances will a court not lift the veil to identify the true
nature of the relationship?
1. Where the company has been established to commit a fraud.
2. Where the comoany has been established to contractual agreements.
3. In the interests of justice.
4. Where two separate legal entities are run as one economic undertaking.
Codes:

a. 1,2 and 4 c. both 3 and 4

b. Both 2 and 4 d. all of the above
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46. Arrange the following concepts in the order in which they came into force?
a. Competition act
b. Foreign exchange management act
c. Consumer protection act
d. Securities and exchange board of india act.
Codes:

a. 3, 4, 2, 1 c. 1, 2, 4, 3
b. 4, 3, 2, 1 d. 2, 1, 3, 4
HILAL AHMAD:

47. Consumers have the right

1. To be protected against goods and services that are hazardous to life and property.
2. To be assured, wherever possible, access to a variety of goods and services at national prices.
Codes:

a. Both 1 and 2 c. only 1

b. Only 2 d. none of the above

48. If the amount claimed by a consumer as compensation is Rs 89 lakh, the case under the consumers
protection act shall be filed with
a. District consumer redressal forum
b. State consumer disputes redressal commission
c. National consumer disputes redressal commission
d. Supreme court

49.Which of the following is not the responsibilities of the consumers?

a. The consumer should make vague complaints
b. The consimer should make a specific complaint with supporting exidence
59

c. The consumer should, as a rule complain against a system and not attack individuals who are incumbents
of post
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d. Consumers, in asserting their rights should not inconvenience or hurt other sections of the public.
 60 | P a g e UGC NET-COMMERCE SESSION-2022

50. According to Charles Brady at Wellington, the main focus of corporate social responsibility should be
a. Providing employees with good jobs and the opportunity to develop
b. Giving part of the companys profits to worthy charities
c. Providing free training to local schools and universities
d. Making sure the company is as green as possible.

51. Which is one of an advantage to adopt shared value approach while practicing CSR for an organisation?
a. Integrates the needs of both the business and the charitable cause
b. Contributes to the firm by solving only environmental issues
c. Contributes fastest way to form an alliance and increase engagement among the stakeholders
d. Creates and interdependence of long term business success on balanced social system

52.Which of the following general principle is not followed by corporation while practicing CSR?
a. Managers are not responsible to follow and encourage ethical business practices among employees.
b. Companies should support the inclusion of the principles of United Nations Global Compact
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c. Companies should encourage and facilitate communication and dialogue with its shareholdres, investors,
employees, customers and suppliers
d. Companies should indulge in free market practices rejecting any illegal practices and implement effective
mechanism.

53. What does CRS concern with?

a. How an organisation meet the expectations of its stakeholders.
b. External stakeholders relationship
c. The behaviour of individual managers
d. The ways in which an orgainsation exceeds its minimum required obligations to stakeholders
HILAL AHMAD:

54. A stable and dynamic political environment is indispensable for

(a) business growth
(b) enhancing the export
(c) increasing participation
(d) Both (a) and (b)

55. Which of the following is not an element of social environment?

(a) Tendency of population
(b) Individual needs
(c) Cultural elements
(d) Policies of competition

56. Which of the following environmental factor is not the reason of political stability?
(a) Government policies
(b) Production cost of goods
(c) War
(d) Social grudge
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57. Tax policy comes under which element of business environment?

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(a) Economic
(b) Legal
 61 | P a g e UGC NET-COMMERCE SESSION-2022

(c) Social
(d) Political

58. Tax jurisdiction is an example of which environment factor? ‘

(a) Social
(b) Economic
(c) Political
(d) Legal

59. Which of the following statement is true?

(a) Economic system affects economic environment of business
(b) It‘is possible to control business environment
(c) Both (a) and (b)
(d) None of the above
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60. “The environment of business consists of all those external things to which it is exposed and by which it
may be influenced, directly or indirectly”. This statement was said by
(a) Wleer and Torch
(b) Copen
(c) Reinecke and Schoell
(d) Arthur M Weimer

61. Which of the following is not included in features of business environment?

(a) Business environment includes both types internal and external
(b) It is not in control of a businessman
HILAL AHMAD:

(c) Business environment is movable/continuous

(d) Activities of business environment are complex in nature

62. Study of business environment is important because

(a) it gives information about complexicity of business
(b) it provides information about effects of business elements
(c) Both (a) and (b)
(d) Only b

63. Which of the following statement is not true?

a. Mapping of business includes its localisation, result. and progress
b. Strategies of competitor, knowledge and financial problems are faced in a business
c. Natural resources of a business affects it internally
d. External environment does not affect: a business

64. Adoption and promotion of o-commerce by government comes under which element of busineg.
environment?
a. Social
61

b. Political
c. egal
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d. Technological
 62 | P a g e UGC NET-COMMERCE SESSION-2022

65. Environment related elements which are closely related with business are known as
a. special environment (c) general environment
b. macro environment (d) All of these

66. Which of the following is not an element of micro environment?

a. Technological factors
b. Legal-political conditions
c. Social-cultural factors '
d. Organisational customs

67. Which of the following statement is not true?

a. Financial institutions are main elements of internal business environment
b. Economic system affects economic environment of business
c. If illegal buying and selling of goods does not comes under business
d. Legal environment of business is the part of political environment
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68. Which of the following is not included in economic policy of government?

a. Import-export policy
b. Licensing policy
c. Industrial DOHCY
d. Monetary policy

69. Economic environment is affected by

HILAL AHMAD:

a. law and order

b. domestic economic condition
c. Both (a) and (b)
d. None of the above

70. Economic elements of business environment are

a. budget and investment condition
b. income level
c. price level
d. All of the above

71. When was FEMA came into existence?

a. 7th June, 2000
b. 3lst June, 2000
c. 20th May, 1999
d. None of the above

72. FEMA is implemented for

62

a. To facilitate external trade and payment

b. To emphasizes on transparency
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c. Both a and b
d. None of the above
 63 | P a g e UGC NET-COMMERCE SESSION-2022

73. Which of the following can not be included in socio-cultural factors of a business?
a. Changing preferences
b. Demographics
c. Poverty
d. Techniques

MISCELLANEOUS

Directions (Q. Nos. 74 – 81). In the questions given below are two statements labelled as statement I
and statement II. You have to examine these two statements carefully. Select the correct code.

Codes:

a. Statement I is correct.
b. Statement II is correct.
WHATSAPP = 9906837425

c. Both statements are correct.

d. Both statements are incorrect.

74. Statement I. Business refers to all those human activities which are related with production and
distribution of goods and services.
Statement II. Environment refers to all external forces which have bearing on the functioning of business.

75. Statement I Internal environment refers to the factors internal to the firm.
Statement II these factors are non-controllable.
HILAL AHMAD:

76. Statement I. external environment refers to external aspects of the sorroundings of business enterprises.
Statement II. External environment can categorized into micro and macro environment.

77. Statement I. fiscal policy works as an instrument in economic and social growth of a country.
Statement II. It is framed by the government of a country.

78. Statement I. monetary policy is used to influence the exchange rate of the country’s currency.
Statement II. Economic policy may or may not have favourable effect on a business unit.

79. Statement I. the main aim is to protect consumers from immoral practice of business orgainsation.
Statement II. This law is not helpful to secure consumers and customers from such cheating and market
frauds.

80. Statement I. business environment always changes.

Statement II. Society exchnages business for production.

81. Statement I. fiscal policy is decided under budgetary policy of the government.
Statement II. Fiscal policy directly affects buying power of the citizens.
63

Directions (Q. Nos 82 – 93) in the questions given below are two statements labelled as Assertion (A)
and Reason (R). in the context of the two statements, which one of the following is correct?
Page

Codes
 64 | P a g e UGC NET-COMMERCE SESSION-2022

a. Both A and R are true, R is thr correct explanation of A.

b. Both A and B are true, but R is not the correct explanation of A.
c. A is correct, but R is incorrect.
d. A is incorrect, but R is correct.

82. Assertion (A). business in responsible for whole society rather than businessman.
Reason (R) As business converts into independent from its responsibility maximize.

83. Assertion (A). the internal factors are generallt regarded as controllable factors.
Reason (R) since the company has control over internal factors.

84. Assertion (A). Micro environment is also known as operating environment of business.
Reason (R). Micro environment forces have a direct bearing on the operations of the firm.

85. Assertion (A) Environmental understanding provide enough information regarding the need of consumers.
Reason (R). Environmental understanding is not a early warning system.
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86. Assertion (A) Business environment is of two types external and internal environment.
Reason (R). Micro environment is related to external environment of the organisation.

87. Assertion (A) Business environment does not affect much on the decision-making of the companies.
Reason (R). Business environment is related to all external forces outside the organiation.

88. Assertion (A). high intensity of competitive rivalry can make an industry more competitive and decrease
profit potential for the existing firms.
Reason (R). Industry with excess production capacity will have greater among competitors.
HILAL AHMAD:

89. Assertion (A) The private proprietorship is replaced by social ownership as and when we move from a
capitalist system to a socialist system.
Reason (R). under socialism properties are managed by the state

90. Assertion (A). desire competition is generally very high in countries characterized by limited disposable
incomes.
Reason (R) In competitive world the firms has to compete, not only the other firms which market the same
or similar products, but also all those who compete for the discretionary income of the consumer.

91. Assertion (A). In the totalitarian socialism, people are free to choose their occupations.
Reason (R). In the totalitarian socialism, all important means of productions are controlled or owned by
the government.

92. Assertion (A). Budget surplus in frequently regarded as an index of fiscal policy actions.
Reason (R). A decrease in deficit is looked up as indicating restrictive fiscal policy and vice versa.

93. Assertion (A) Small scale insudtries have an important place in the national economy.
Reason (R). state has reserved production of some goods exclusively for the small scale industries.

94. Match the following.

64

LIST – I LIST – II
A. Internal environment 1. Skilled labour
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B. External environment 2. Financial and physical resources

C. Financial resources 3. Customer and competitor
 65 | P a g e UGC NET-COMMERCE SESSION-2022

D. Human resource 4. Financial and profitable use of funds

Codes:

A B C D
a. 2 3 4 1
b. 2 4 1 3
c. 3 1 2 4
d. 4 3 2 1

95. Match the following

List – I List – II
a. Micro environment 1. Interest rate
b. Macro environment 2. Restrictions of WTO
c. Political environment 3. Suppliers
d. Globalization environment 4. Planning commission
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Codes:

A B C D

a. 3 1 4 2

b. 2 4 1 3

c. 1 3 2 4

d. 3 2 4 1
HILAL AHMAD:

96. Macth the following

LIST – I LIST- II
A. Social factors 1. Increment and reduction in price of fuel
B. Political factors 2. Primary function of business
C. Economic factors 3. Customs, traditions and assumptions
D. Analysis of needs and interest of 4. Industrial policy of government
customers
Codes:

A B C D

a. 4 2 1 3

b. 3 4 1 2

c. 1 2 3 4

d. 4 3 2 1

97. Match the following.

LIST-1 LIST-II
A. Natural environment 1. High research and development budget
65

B. Technological environment 2. Poeoples vies on nature

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C. Polictical environment 3. Increase cost of energy

D. Cultural environment 4. Increase in publc interest group
Codes:
 66 | P a g e UGC NET-COMMERCE SESSION-2022

A B C D

a. 3 1 4 2

b. 2 4 3 1

c. 2 4 1 3

d. 3 2 4 1

98. Match the following

LIST-I (ECONOMIC SYSTEMS) LIST-II (FEATURES)
A. Traditional economy 1. Provides only those goods and services
which are required for the survival or which
they want to consume
B. Capitalism 2. The freedom of occupation is absent or
restricted
WHATSAPP = 9906837425

C. Socialism 3. consumers have complete freedom of

choice of consumption
D. mixed economy 4. the private sector operates primarily with a
profir motive and public sector seeks to
achieve social welfare.
Codes:

A B C D

a. 3 1 4 2

b. 1 4 3 2
HILAL AHMAD:

c. 1 3 2 4

d. 3 2 4 1

99. match the following.

List- I List – II
a. capitalist economy is the economy in 1. condition of complete employment
which
b. main feature if capitalist economy 2. mixed economy
c. main feature of socialst economy is 3. skilled production
d. capitalist and socialist economy includes 4. individual ownership own main sources of
production and distribution
Codes:

A B C D

a. 4 3 1 2

b. 4 3 2 1

c. 1 2 3 4
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d. 4 1 2 3
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100. match the following

List –I List – II
 67 | P a g e UGC NET-COMMERCE SESSION-2022

a. The essential commodities act 1. 1937

b. Agricultural products grading and 2. 1958
marketing act
c. The prevention of food adulteration act 3. 1955
d. Trademarks and merchandise marks act 4. 1954
Codes:

A B C D

a. 1 3 2 4

b. 2 4 1 3

c. 3 1 2 4

d. 1 2 3 4

ANSWER KEY’s
WHATSAPP = 9906837425

1=b 2=b 3=a 4=a 5=b 6=d 7=c 8=c 9=c 10=d
11=c 12=d 13=d 14=b 15=a 16=d 17=d 18=d 19=c 20=a
21=c 22=b 23=d 24=a 25=c 26=b 27=a 28=c 29=c 30=b
31=d 32=b 33=b 34=b 35=a 36=a 37=a 38=d 39=a 40=b
41=a 42=c 43=c 44=c 45=a 46=a 47=a 48=b 49=a 50=a
51=d 52=a 53=d 54=a 55=d 56=b 57=b 58=d 59=a 60=c
61=d 62=c 63=d 64=b 65=a 66=d 67=a 68=c 69=c 70=a
71=a 72=c 73=c 74=c 75=a 76=c 77=c 78=c 79=a 80=c
81=d 82=a 83=a 84=a 85=c 86=a 87=d 88=b 89=b 90=b
HILAL AHMAD:

91=d 92=c 93=a 94=a 95=a 96=b 97=d 98=c 99=a 100=b

PREVIOUS YEARS’S QUESTIONS

June/December-2020
1. Match list-I with list-II
List-I List-II
a. Steffan linder i. product life cycle theory
b. Raymond Vernon ii. Country similarity theory
c. Hecsher ohlin iii. Absolute advantage theory
d. Adam smith iv. Factor proportion theory
Choose the correct answer from the options given below
1. A-IV, B-III, C-II, D—I
2. A-II, B-I, C-IV, D-III
3. A-I, B-III, C-IV, D-II
4. A-III, B-II, C-I, D-IV
ANSWER: 2

2. Statement-I monetary policy causes a deliberate change in government revenue and expenditure with a view
to influencing the price level and the quantum off national output.
67

Statement-II fiscal policy regulates the money supply and the cost and availability of credit
Choose the right option from the given below:
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1. Both statement I and statement II are correct.

2. Both statement I and statement II are incorrect.
3. Statement I is correct but statement II is incorrect.
 68 | P a g e UGC NET-COMMERCE SESSION-2022

4. Statement I is incorrect but statement I is correct.

Answer: 2

3. As per carroll model, the four levels of corporate social responsibility are:
1. Physical, economic, social and legal
2. Physical, economic, legal and ethical
3. Philanthropic, economic, legal and ethical
4. Philanthropic, economic, social and ethical
Answer: 3

5. EPRG framework in International business refers to

1. Ethno, poly, region, geo transformations
2. Ethnocentric, polycentric, regiocentric and geocentric orientations
3. Ethics, policies, regulations, guidelines orientations
4. Every person refers globak framework
Answer: 2

5. Mercosur, a south American trade block is aa:

1. Free trade area 3. Custom union
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2. Common market 4. Economic cooperation

Answer: 2
6. Which of the following are possible negative impacts of FDI on domestic firms in host countries?
a. Market monopoly c. increased competition
b. Technology dependence d. profit outflow
Choose the correct answer from the options given below:

1. Ab 2. B c c. a b d d. b c d
Answer: as per official key *
HILAL AHMAD:

December-2019
4. Given below are two statements. One os labeled as Assertion and the other is labeled as Reason
Assertion (A) Globalisation refers to the free cross-border movement of goods, services, capital, information
and people.
Reason ® countries are consistently evolving innovative marketing barriers that are WTO compatible.
In the light of the above statements, choose the correct answer from the options given below:
1. Both (A) and ® are true and ® is the correct explanation of (A)
2. Both (A) and ® are true but ® is not the correct explanation of (A)
3. (A) is true but ® is false
4. (A) is false but ® is true
Answer: 2
5. According to FEMA, foreign exchange does not include
1. Deposits payable in any foreign currency
2. Bills of exchange drawn in Indian currency but payable in any foreign currency.
3. Travellers cheques drawn by institutions outside India but payable in Indian currency
4. Draft drawn by banks outside India and payable in foreign currency
Answer: 4
6. In which of the following years, the Bretton woods agreement was signed by the delegates from 44
nations which led to the establishment of the IMF?
1. 1940 2. 1952 3. 1944 4. 1957
Answer: 3
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7. Which of the following are part of corporate social responsibility to consumers?

e. Reasonable chances and proper system for accomplishment and promotion
Page

f. To supply goods at reasonable prices even when there is sellers market

g. Improving the efficiency of the business operation
h. To provide an opportunity for being heard and redress genuine grievences.
 69 | P a g e UGC NET-COMMERCE SESSION-2022

Choose the correct answer from the options given below:

1. A & b 2. B & d 3. B & c 4. A & c

Answer: 2

5. Which one of the following is not correct according to the consumer protection act?
1. Districy forum shall consist of a lady social worker
2. State commission shall consist of person who is or has been a judge of a high court
3. District forum shall consist of four members
4. National consumer disputes redressal commission shall consist of a person who is or has been a judge
of the supreme court.
Answer: 3

5. Which of the following are the function of WTO?

a. To facilitate the implementation, administration and operation of trade agreement
b. To carry out periodic reviews of the trade policies of its member countries
c. To assist in the establishment of a multilateral system of payments
d. To promote international monetary cooperation
Choose the correct option from the following
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1. A and d 2. B and c 3. C and d 4. A and b

Answer: 4
6. Match list-I with list-II
List-I List-II
a. Size of the market i. Globalization of business
b. Demographic environment ii. Foreign trade policy
c. Export oriented units iii. Macro environment
d. Multinational corporations iv. Non economic environment
Choose the correct option from given below:
1. A – iv b-ii c-iii d-i
2. A-ii b=iii c-I d-iv
HILAL AHMAD:

3. A-iii b-ii c-I d-iv

4. A-iii b-iv c-ii d-i
Answer: 4

7. Which one is odd

1. Economic policies 3. Socio cultural factors
2. Economic planning 4. Macro economic scenario
Answer: 3
8. What are the drivers of globalization?
a. Population mobility especially of labour
b. Financial flows
c. Exporting
d. Assembly operations
Choose the correct answer from the following

1. A and d c. a and b
2. B and d d. c and d
Answer: 3
9. Which of the following laws affect business organisations?
1. Incorporation and bankruptcy laws
2. Environmental protection laws
3. Occupational health and safety laws
69

4. Competition laws
Answer: 1
Page
 70 | P a g e UGC NET-COMMERCE SESSION-2022

December 2018

1. Match the items of List I with the items of List II and choose the correct answer from the code
given below.
List –I List – II

A. Rival firms 1. External environment

B. Technology 2. Social and cultural environment
C. Improving quality 3. Internal environment
D. Ethics in business 4. Global environment
Codes

A B C D

a 1 2 3 4

b. 2 3 4 1
WHATSAPP = 9906837425

c. 3 1 4 2

d. 4 1 2 3

JULY-2018

2. The central bank can significantly influence the savings, investments and consumer spending
in the economy through which of the following policy?
a. Fiscal policy
b. Monetary plicy
c. Industrial policy
d. Eoreign exchange policy
HILAL AHMAD:

3. Which of the following is not the charachteristic of capitalism?

a. Individuals and associations behave with economic motive of maximizing their profit with
least sacrifice or cost
b. The countrys major means of production are either owned by the government or their use is
controlled by the government
c. Producers, consumers and employees complete among themselves as the resources and
opportunities are limited
d. Price, the invisible hand, plays a predominant role in the flow of the factors of production and
consumption

4. Which of the following statement is not correct relating to consumerism?

a. Consumerism is a manifestation of the failure of the business to gurantee and ensure
consumer legitimate rights.
b. The government does not have any role in consumer protection as it is the part of business
organisation alone
c. The consummers should accept consumerism as a means if asserting and enjoying their rights
d. Consumerism evolution is not a setback for marketing but rather points to the next stage in
the evolution of enlightened marketing
70

5. Which of the following is not the silent feature of the industrial policy developments since
1991?
Page

a. The scope of the private sctor has seen enormously expanded

 71 | P a g e UGC NET-COMMERCE SESSION-2022

b. Public sector has been withdrawing partially or fully form several of the interprises by
divestment
c. The Indian industry is increasingly exposed to foreign competition
d. Monopoly or dominant position for public sector in most of the ndustries and control of the
commanding heights of the economy by the public sector

NOVEMBER 2017

6. Which one of the following is not correct relating to competition policy and law?
a. Collusion and dominance have potential for unfair competition.
b. The appeal against decisions of competition commission of India can be made to the
competition appellate tribunal
c. State monopolies, government’s business policies and functioning of regulatory authorities
cannot be secutinised under this law
d. Abuse of dominance rather than dominance should be the key for competition policy law.
WHATSAPP = 9906837425

7. Match items of List I with List II relating to macro environment of business and indicate the
code of correct matching.
List-I List – II
a. Economic environment 1. Ethical issues
b. Political and government 2. Trade and transport policies
environment
c. Socio-cultural environment 3. Economic stratification of population
d. Demographic environment 4. Judiciary powers

Codes
A B C D
HILAL AHMAD:

a. 2 4 1 3
b. 1 3 2 4
c. 4 2 3 1
d. 3 1 4 2

8. Match the items of list-I and list-II and indicate the correct code of matching.
List-I List-II
a. Micro external environment 1. Economic and political factors
b. Macro external environment 2. Competition among diverse products
targeting disposable income of
consumers
c. Non-profit competition 3. Input suppliers
d. Desire competition 4. Sponsoring of events like sports
Codes:

A B C D

a. 3 1 4 2

b. 2 3 4 1

c. 4 2 3 1
71

d. 4 1 2 3
Page

January 2017
 72 | P a g e UGC NET-COMMERCE SESSION-2022

9. Which of the following is not the objective of the competition act 2002?
a. Prohibition of restrictive trade practices
b. Prohibition of dominant position
c. Probation of anti-competitive agreeents
d. Regulation of combinations

July 2016

10. Which of the following is not a forum of consumer dispute redressal system?
a. Local forum
b. District forum
c. State forum
d. National commission

11. Assertion (A) Under FEMA, the receiver of laundered money is to be made culpable, instead of
sender or distributor.
WHATSAPP = 9906837425

Reason (R). FEMA differs from the earlier exchange regulation act FERA with regard to
penalties and punishment in case of violation of the act.
Codes:
a. A is correct but R is not correct.
b. Both A and R are correct but R is not the correct explanation of A
c. Both A and R are correct and R is the correct explanation of A.
d. Both A and R are incorrect.

12. Match the items of List I with List II

List- I List -
HILAL AHMAD:

A. Fiscal policy 1. Mitigation of national hazards

B. Technology policy 2. Balance of payment
C. Macro economic policy 3. Fiscal federalism
D. Monetary policy 4. inflation
Codes:

A B C D

a. 1 2 3 4

b. 3 1 2 4

c. 4 3 1 2

d. 2 1 4 2

December 2015

13. environmental degeneration does not consist of

a. land degeneration and soil erosion.
b. Problem of overgrazing and ecological degeneration
c. Floods
d. None of the above.
72
Page

14. Which of the following is not the main objective of fiscal policy of India?
a. To increase liquidity in econoy
b. To promote price stability
 73 | P a g e UGC NET-COMMERCE SESSION-2022

c. To minimize the inequality in income and wealth

d. To promote employment opportunities

June 2015

15. From the following, identify the tools of fiscal policy

1. Public expenditure
2. Open market operations
3. Deficit financing
4. Taxation
5. Reserve requirements
Select the correct answer using the codes given below

Codes:

a. 1, 3, 4 and 5
b. 1, 2, 4 and 5
WHATSAPP = 9906837425

c. Both 2 and 5
d. 1, 3 and 4

December 2014

16. Match the following

List-I List-II
A. Industries development regulation act 1. 1947
B. Import and export control act 2. 1948
C. Foreign exchange management act 3. 1951
D. Factories act 4. 1999
HILAL AHMAD:

Codes:

A B C D

a. 1 3 4 2

b. 3 1 2 4

c. 3 1 4 2

d. 3 4 2 1

17. Which among the following is not a correct sequential combination?

a. Macro environment → economic environment → national income → pattern of income
distribution
b. Business environment → internal environment → business ethics → payment of fair wages
c. Business environment → external environment → micro environment → suppliers
d. Macro environment → external environment → customers → prospects of business
development

18. Internal environment of a business includes

1. Business ethics and moral standards
73

2. Business and managerial policies

3. Prospects of business development
Page

4. Government rules and regulations

5. Industrial relations.
 74 | P a g e UGC NET-COMMERCE SESSION-2022

Select the correct answer using the codes given below

Codes:

a. 1, 2, 4 and 5
b. 2, 3 4 and 5
c. 1, 2, 3 and 4
d. 1, 2, 3 and 5

June – 2014

19. There is acute shortage of electricity in some of the states in India. This reflects a problem in
which type of business environment?
a. Economic
b. Demographic
c. Politico-legal
d. Socio-cultural
WHATSAPP = 9906837425

20. The time limit for filing a complaints before the district forum under the, consumer protection
act, 1986 is
a. 1 year
b. 2 year
c. 3 year
d. There is no such time limit

21. The competition act 2002, seeks to regulate

a. Anti-competitive agreements
HILAL AHMAD:

b. Mergers and amalgamation

c. Unfair trade practices
d. Both a and b

22. Which of the legislation do not from part of the legal environment of business in India?
a. The drugs and cosmetics act 1940
b. The prevention of food adulteration act 1954
c. The monopolies and restrictive trade practice act 1969
d. Both b and c

23. Which of the following is true?

a. A consumer court set-up under the consumer protection act does not have the power to
punish for its contempt
b. Professional services are outside the preview of the CPA
c. A consumer court can not force a person indulging in misleading advertising to confess his
quit
d. None of the above

December 2013
74

24. Indicate what is incorrect in respect of the consumer protection act 1986?
Page

a. No complaint can be entertained in respect of a product purchased more than 2 years back.
b. A complaint against medical negligence can be filed by legal heir or representative of the
deceased
 75 | P a g e UGC NET-COMMERCE SESSION-2022

c. A complaint involving a claim of Rs 15 lakh is to be filed before the state commission.

d. Both a and c

25. Which of the following are outside the scope of the consumer protection act 1986?
a. Newspaper industry
b. Services provided under contract of personal service
c. Banking industry
d. Both a and b

26. Strategies and polices

a. Are not closely related
b. Given direction
c. Are the framework for performance appraisal
d. Both a and b
WHATSAPP = 9906837425

27. The flagship project of government of india launched for gerenating guaranteed employment
in rural areas is known as
a. PMRY
b. MNREGA
c. JRY
d. NREP

June - 2013

28. Which of the following are sources of ethics?

HILAL AHMAD:

1. Religion
2. Legal system
3. Economic system
4. Culture
5. Family system
Select the correct answer using the codes given below

Codes:

a. 1, 2, 3 and 5
b. 1, 2 and 4
c. 1, 4 and 5
d. All of the above

29. Match the following

List – I List – II
a. Political and legal environment 1. Important for industries directly
depending on imports or exports
b. Demographic environment 2. Close relationship with he economic
system and economic policy
c. Economic environment 3. Related to natural resoources
d. Geographical and ecological environment 4. Occupational and spatial mobilities of
75

population having implications for

business
Page

Codes:
 76 | P a g e UGC NET-COMMERCE SESSION-2022

A B C D

a. 2 4 3 1

b. 2 4 1 3

c. 1 2 3 4

d. 1 2 4 3

30. Consumer attitudes and beliefs about diet, health and nutrition are influenced by
a. Economic environment
b. Cultural environment
c. Social environment
d. Natural environment
WHATSAPP = 9906837425

31. Indicate the ground on which a complaint under the consumer protection act 1936 shall be
invalid?
a. A product having short weight
b. A service provided free of cost
c. A misleading advertisement given in newspaper
d. None of the above

32. The apex consumer court in India is referred to as

a. The consumer education and research centre
b. The consumer unity and trust society
HILAL AHMAD:

c. National consumer disputes redressal commission

d. None of the above

December 2012

33. Which one is not an element of internal environment

a. Marketing capability
b. Operational capability
c. Money and capital market
d. Personnel capability

34. Which one of the following is not an element of internal environment?

a. Mission or objective
b. Human resource
c. Customers
d. Shareholders values

June 2012

35. Assertion (A) Internal factors of business environment are controllable factors.
76

Reason (R). The company can alter or modify such factors to suit the environment
Codes.
Page

a. Both A and R are true

b. A is correct but R is false
 77 | P a g e UGC NET-COMMERCE SESSION-2022

c. Both A and R are false

d. A is false but R is true

36. Which one is not an element of legal environment?

a. Act of parliamentarians in lok sabha
b. Indian contract act 1872
c. Indian partnership act 1932
d. Negotiable instruments act 1881

Answer keys

1= C 2= B 3= B 4= D 5= B 6=C 7=A 8=A 9=A 10=A

11=C 12=B 13=D 14=A 15=D 16=C 17=D 18=D 19=A 20=B
21=D 22=D 23=A 24=C 25=D 26=B 27=B 28=C 29=B 30=B
31=B 32=C 33=C 34=C 35=A 36=A
WHATSAPP = 9906837425

PRACTICE SETS
1. ______________ is the main aim of economic planning in India?
a. Economic growth
b. Industrial expansion
c. Growth with social justice
d. None of these

2. ___________ is the apex body of the economic planning in India?

HILAL AHMAD:

a. Planning commission
b. Parlament
c. Supreme court
d. None of these

3. Analyzing process of change on the business environment involves conceptualizing it as

a. Diverse b. comples c. dynalim d. static

4. The concept of firms license to operate refers to

a. A legal requirement for company registration
b. An agreement recornizing trade unions
c. The need for a firm to retain its legitimacy in the eyes of the public
d. The qualifications needed by company directors

5. The transfer of asset from public sector to the private sector os referred to as
a. Privatization b. deregulation c. nationalization d. individuation

6. What is triple bottom line audit?

77

a. A social economic and environmental audit

b. An audit of the three major financial project of a business
Page

c. An audit by the physical helath of employees

d. An audit of all the sporting resources of the enterprise
 78 | P a g e UGC NET-COMMERCE SESSION-2022

7. What does the PPP of P3 initiative refers to?

a. Public policy papers
b. Public private partnership
c. Private procurement production
d. Personal production proposal

8. What does PFI initiative refers to?

a. Private fnance initiative
b. Private fiscal initiative
c. Public financial initiative
d. Private foundation investment

9. Globalization refers to
a. A more integrated and independent world
b. Lower income world wide
c. Less foreign trade and investment
WHATSAPP = 9906837425

d. Global warming

10. Which of the following do not facilitate globalization?

a. Improvements in communication
b. Barriers to trade and investment
c. Immigration control
d. Removal of control on movements of capital across borders.

11. Which of the following is not a deriver of globalization?

HILAL AHMAD:

a. Fragmentation of consumer taste between countries

b. The competitive process
c. The need to gain economies of scale
d. None of these

12. Globalization is beneficial for firms because

a. It protects them against foreign competition
b. It cushions them from the effects of events on other countries
c. It increases the risk and uncertainty of operating in globalizing world economy.

13. Globalization can create problem for business because

a. It can result in more competition
b. It increases vulnerability to political risk and uncertainty when operating abroad
c. It means that they can increase price
d. All of the above

14. An environment which is increasing comples and turbulent displays

a. More orderly competition
b. More predicatble demand
78

c. A reduced risk of product obsolescence

d. Increased speed of innovation
Page

15. Which of the following is not a business opportunity generated by globalization?

 79 | P a g e UGC NET-COMMERCE SESSION-2022

a. Access to low cost labour

b. Cheap international transport
c. Currency crisis
d. Less stringent regulations of the business environment

16. To determine a country’s attractiveness to business require?

a. A detailed analysis of elements in the macro environment
b. An assessment of the political and financial risks of doing business in that country
c. An analysis of the competitive environment
d. All of the above

17. Secondary screening anvolves

a. An external environment analysis
b. Risk analysis
c. An external environment analys and risk analysis
d. A competitor analysis
WHATSAPP = 9906837425

18. The sale of sub standard and hazardous goods under defined conditions constitute
a. Restrictive trade practice
b. Unfair trade practice
c. MRTP
d. None of these

19. _________ refers to the external forces which have a beating on the functioning of the business.
a. Environment b. culture c. system d. none of these
HILAL AHMAD:

20. _______ is a social movement seeking to augment the rights and powers of buyers?
a. Consumer movement
b. Consumerism
c. Flows
d. None of these

Answer keys
1=C 2=A 3=C 4=A 5=A 6=A 7=B 8=A 9=A 10=B
11=A 12=C 13=A 14=D 15=C 16=D 17=C 18=A 19=A 20=B

PRACTICE STES
1. Industrial policy of 1948 aimes at
a. Industrialization
b. Growth of agriculture
c. Development of infrastructure
79

d. Development of service sector

Page

2. By which Act the government checks restrictive trade

a. Industrial policy act 1991
 80 | P a g e UGC NET-COMMERCE SESSION-2022

b. MRTP act
c. FEMA
d. ICRA

3. The industrial policy resolution was passes

a. 1931 b. 1947 c. 1956 d. 1999

4. What are the decisions taken by the Govt of India pertaining to the public sector on the new industrial
policy of 1991?
a. VRS to shed the load of excess workers
b. Disinvestment of public sector share holding
c. Referring sick units to BIFR
d. All of the above

5. Privatization of ownership through scale of equity shares is called

WHATSAPP = 9906837425

a. Denationalisation c. contracting
b. Disonvestment d. none of these

6. Which among these is not a method of privatization?

a. Denotionalisation c. sale of business
b. Franchising d. all of the above

7. A possible obstacle to the growth of privatization is

a. Profit earned by public enterprises
HILAL AHMAD:

b. Sale of lease profitable enterprises

c. Licensing
d. None of these

8. The credit for investing the word privatization goes to

a. Elton Mayo c. L Urwick
b. F.W Taylor d. Peters Druker

9. The age of discountinuity 1969 has been authored by

a. John Drydon c. peter F Druker
b. Cyril Debydeen d. None of these

10. In India Liberalisation and Privatisation began from?

a. 1991 b. 1971 c. 1981 d. 1947

11. Globalization means

a. Setting of firs branches in other countries
b. Adopting a global outlook
c. Earning profit from exports
80

d. Attracting foreign investment

Page

12. Which one is not the main objective of fiscal policy in India?
a. To increase liquidity in the economy
 81 | P a g e UGC NET-COMMERCE SESSION-2022

b. To promote price stability

c. To minimize the inequilities of income and wealth
d. To promote employment opportunities

13. Which one and not an element of internal environment

a. Marketing capability
b. Operational capability
c. Money and capital market
d. Personal capability

14. Environment degradation does not consist of

a. Land degradation and soil erosion
b. Problem of overgrazing and ecological degradation
c. Floods
d. None of these
WHATSAPP = 9906837425

15. Liberalization means

a. Reducing the number of reserved industries from 17 to 8
b. Liberating the economy, trade and industry from upwanted restrictions
c. Opening up of the economy to the world market by attaning international competitiveness
d. Free determination of interest rates

16. Forms of mixed economy consists of

a. Public sector c. cooperative sector
b. Private sector d. none of these
HILAL AHMAD:

17. Which among these can be a condition for the success of privatization?
a. Alternativr institutional arrangement
b. Barriers to enter the market
c. Measurability of performance
d. All of the above

18. Gloablisation means

a. Adopting a global outlook for business
b. Inviting multionational in the country
c. Selling in foreign markets
d. All of the above

19. Indian Business encounter the following problem in globalization

a. Infrastructure bottlenecks
b. Lack of interest shown by MNCs
c. A and B
d. None of these
81

20. Which among these is net a key global force impacting the Indian economy?
a. Dynamics of capital flows
Page

b. Integrating role of purcshasing

c. Integrating role of techonology
 82 | P a g e UGC NET-COMMERCE SESSION-2022

d. Need for attitudinal change

Answer keys
1=A 2=B 3=C 4=D 5=B 6=C 7=B 8=D 9=C 10=A
11=B 12=A 13=A 14=D 15=C 16=A 17=B 18=A 19=A 20=A

PRACTICE SETS’
1. Economic environment of business consists of
a. Economic prices
b. Economic standards
c. Economic laws
d. Economic policies
WHATSAPP = 9906837425

2. Which among these is not an objective of planning?

a. Economic growth
b. Setting of heavy industries
c. Modernization
d. None of the above

3. Pollution monitoring and control is done by

a. Central board for prevention and control of water pollution
b. Central board for pollution control
HILAL AHMAD:

c. Central government
d. None of the above

4. Micro factors of external business environment does not include

a. Competitors c. govt policy
b. Customers d. none of these

5. Company images and brand equity is factor affecting business

a. Externally c. govt policy
b. Internally d. none of these

6. Consumer protection in India is ensured by

a. Consumer protection act 1946
b. Consumer protection act 1986
c. Consumer protection act 1990
d. Consumer protection act 1968

7. Which among these is not a restrictive trade practice?

82

a. Tie up sales
b. Price discrimination
Page

c. Manipulation of prices
d. All are restrictive trade practices
 83 | P a g e UGC NET-COMMERCE SESSION-2022

8. Which of the following is not an instrument of monetary policy?

a. Deficit financing
b. Statutory liquidity ratio
c. Cash reserve ratio
d. Open market operation

9. The MRTP act 1969 was abolished in

a. 1991 b. 2002 c. 2006 d. none of the above

10. Which a company takes over another one and clearly becomes a new owner, the action is called
a. Merger c. strategic alliance
b. Acquisition d. none of these

11. Globalization is a term used to describe the process of removal of restrictions on which of the
following?
WHATSAPP = 9906837425

a. Foreign trade c. A and B

b. Investment d. none of these

12. India abolished the quantitative restrictions on imports of 1429 items in 2000 and 2001 as per the
commitment to which of the following
a. SAFTA b. GATT c. WTO d. NAM

13. The concept of small scale industries was brought to fore by the
a. Industrial policy resolution 1948
HILAL AHMAD:

b. Industrial policy resolution 1956

c. Industrial policy statement 1977
d. None of the above

14. Which of the following does not fall within the jurisdiction of MRTP commission?
a. Prevention of monopolistic trade practices
b. Prevention of restrictive trade practices
c. Prohibition of unpair trade practices
d. Regulation of combinations

15. Laissez fairs policy is adopted in

a. Socialistic economic system
b. Capitalistic economic system
c. Mixed economic system
d. Communist economic system

16. Relaxing the restrictions and controls imposed on business and industrial means
a. Liberalization c. Globalisation
b. Privatization d. none of these
83

17. Which of the following is not an objective of competition Act 2002

Page

a. Prohibition of abuse of dominant position

b. Prohibition of restrictive trade practices
c. Prohibition of anti competitive agreement
 84 | P a g e UGC NET-COMMERCE SESSION-2022

d. Regulation of combinations

18. FEMA signifies

a. Free export management act
b. Foreign exchange management act
c. Foreign exchange monitoring act
d. Free export marketing act

19. The pre-liberalisation era of Indian economy was under the grip of
a. Unemployment c. fiscal deficit
b. Under employment d. unfavourable and alarming balance of payment

20. If the amount claimed by a consumer as compensation is Rs 89 lacs the case under the consumer
protection act shall be filed with
a. District consumer redressal forum
WHATSAPP = 9906837425

b. State consumer disputes redressal commission

c. National consumer desputes redressal commission
d. Supreme court

ANSWER KEYS

1=D 2=B 3=A 4=C 5=C 6=B 7=C 8=A 9=B 10=B
11=C 12=C 13=C 14=D 15=B 16=B 17=B 18=B 19=D 20=B

1. The term business environment refers to …….. factors which impact functioning of a firm
HILAL AHMAD:

a) External factors c) Internal factors

b) Management related factors d) Internal and External factors

2. ………are generally considered as controllable factors.

a) Internal factors c) External factors
b) Cost of production d) None of these

3. Factors which are beyond the control of a business are called…..

a) Supply c) Demand
b) Profit d) External factors

4. Marketing intermediaries are categorized under……. Environment.

a) External c) Macro
b) Micro d) Remote

5. Value system followed by the management of a firm as certain influence on its……. environment.
a) Internal c) External
b) Macro d) None of the above

6. Which among the following is part of micro environment?

a) Customers c) Suppliers
b) Competitors d) All the above
84

7. Macro environment consist of…..

Page

a) Political system c) Demographic factors

b) Culture of the society d) All the above
 85 | P a g e UGC NET-COMMERCE SESSION-2022

8. Entry barriers include………

a) Capital requirements c) Monopoly
b) Requirement of investment d) All the above

9. Low income economies are also called…………

a) Third world c) Under developed nations
b) Developing nations d) Second world

10. …….sector contributes more than 70% of world GDP

a) Agriculture c) Service
b) Automobile d) Manufacturing

11. The analysis which helps to diagnose the competitive forces and to identify the strength and weakness
is called…..
a) SWOT analysis c) Competitive analysis
b) Structural analysis d) Financial analysis
WHATSAPP = 9906837425

12. A mission statement explains ………………… of a firm.

a) Philosophy c) Scope
b) Tasks d) All the above

13. Strategy of a firm is shaped by…………………

a) Mission c) Objectives
b) SWOT d) All the above

14. …… process by which a firm determine whether their strategic choice as implemented in meeting the
objectives.
a) Evaluation of strategies c) SWOT analysis
HILAL AHMAD:

b) Screening of strategies d) None of these

15. Generation of electricity includes in which sector?

a) Industry c) Tertiary
b) Primary d) Service

16. Commodities are the goods produced by …… sector

a) Primary c) Secondary
b) Tertiary d) None of these
17. ………… involves all those activities encompassing the trade in goods and services
a) Business c) Commerce
b) Economic activity d) Trading

18. ………. Industries receive raw materials as inputs and dispense intermediates or finished goods.
a) Primary c) Textile
b) Manufacturing d) Allied

19. ………is a form of oligopoly where some degree of differentiation exists between products of different
firms.
a) Perfect oligopoly c) Imperfect oligopoly
b) Duopoly d) Monopsony
85

20. Following are the features of a perfectly competitive industry.

a) Free entry and exit c) large number of firms
Page

b) Mobility of factors d) All the above

21. ……industries provide essential inputs for the development of other industries and economy.
 86 | P a g e UGC NET-COMMERCE SESSION-2022

a) Capital goods industries c) Service sector

b) Allied industries d) Basic industries

22. …………………….. are goods undergone manufacturing process and are meant for further processing.
a) Intermediate goods c) semi-finished goods
b) Work-in –progress d) None of the above

23. …… is the process of analyzing the environment for the identification of the factors which impact on the
business.
a) Environmental analysis c) Environment scanning
b) Business analysis d) Factor analysis

24. ……. Is the technique used to forecast the occurrence of complex environmental events.
a) Scenario analysis c) Business forecast
b) Economic forecast d) demand forecast

25. …………….. is a part of economic policy of a country

WHATSAPP = 9906837425

a) Industrial policy c) Import policy

b) Export policy d) All the above

26. Approaches of a government towards public expenditure and revenue are known as………
a) Budgets c) Monetary policy
b) Fiscal policy d) Industrial policy

27. Monetary policy in India is framed by the…..

a) RBI c) Ministry of finance
b) Ministry of corporate affairs d) Planning commission
HILAL AHMAD:

28. Which of the following is part of monetary policy decision?

a) Fixing SLR c) Fixing CRR
b) Demonetization d) All the above

29. SOEs stands for……..

a) Single owned enterprises c) State owned enterprises
b) Society owned enterprises d)None of these

30. ICSR stands for……

a) Indian Council for Scientific Research c) Indian Council for Strategic Research
b) Indian Council for Social Research d) None of these

31. UNCTAD stands for………….

a) United Nations Committee on Trade and Development
b) United Nations Conference on Trade and Development
c) Union of National Committee on Trade and Commerce
d) None of the Above

32. ………. refers to the system of moral principles and rules of conduct applied to the business.
a) Values of Business C) Business ethics
b) Social responsibility d) Ethical code of conduct
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33. Delay in accepting modern culture is termed as…………….

a) Cultural delay c) Cultural diversity
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b) Cultural gap d) Cultural lag

34. Which among the following is a claimant of social responsibility of business

 87 | P a g e UGC NET-COMMERCE SESSION-2022

a) Shareholders c) Local community

b) Consumers d) All the above

35. …………….. is a tool for evaluating how satisfactory a company has discharged its social responsibilities.
a) Social Audit c) Company audit
b) Internal check d) Internal audit

36. CSRC stands for…………..

a) Company Social Reforms Committee
b) Corporate Social Responsibility Committee
c) Committee for Social Responsibility Commitments
d) None of these

37. …….. is an organized movement to protect rights and powers of buyers in relation to sellers.
a) Consumerism c) Consumer protection Act
b) MRTP Act d) Consumer courts
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38. Consumer protection Act ieas enacted in the year…..

a) 1989 c) 1986
b) 1985 d) 1981

39. National Commission for consumer disputes redressal was formed in the year……
a) 1988 c) 1999
b) 2009 d) 1991

40. IRDA Act is enacted in the year…..

a) 1991 c) 1999
b) 1990 d)2009
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41. Companies Act in India is administered by the……………….

a) Ministry of corporate affairs c) Ministry of Finance
b) Company law board d) SEBI

42. IDRA stands for…………….

a) Industrial Development Registration Act
b) Industries Development and Regulation Act
c) Industries De-recognition and Registration Act
d) None of these

43. Which among the following in is included in Navaratnas?

a) NTPC c) ONGC
b) BHEL d) All the above

44. ……….is the practice of fixing price by the Government

a) Administered pricing c) Floor pricing
b) Minimum pricing d) None of these

45. Practice of charging different price for a product from different markets is called…….
a) Dumping c) Differential pricing
b) Price discrimination d) Strategic pricing
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46. …….. refers to the enterprise owned and managed jointly by the Government and Private sector.
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a) Joint sector c) Joint venture

b) Public private participation d) None of these
 88 | P a g e UGC NET-COMMERCE SESSION-2022

47. Which among the following is a demerit of privatization?

a) Connivance c) Wrong labour strategies
b) Monopoly elements d) All the above

48. PSE stands for…..

a) Private sector enterprises c) Public sector enterprises
b) Private service enterprises d) None of these

49. In 1993 Government of India set up a committee on disinvestment under the

chairmanship of ….
a) Dr. Manmohan singh c) C. Rangarajan
b) Raguram Rajan d) Y.V Reddy

50. EPZs stand for…….

a) Energy processing zones c) Export promotion zones
b) Export Processing Zones d) None of these
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51. Expand MSME

a) Medium , Small and Micro Enterprises b) Micro, Small and Medium Enterprises
c) Minimum, Small and Medium Enterprises d) None of these

52. Ancillarisation means…….

a) Development of supporting industries b) Setting industries to process by products
c) Integration of small scale and large industries d) Developing industries to provide inputs

53. MRTP Act has been replaced by……. Act in 2002

a) Consumer Protection Act c) Competition Act
b) Monopoly Control Act d) None of these
HILAL AHMAD:

54. Moral suasion is …….. nature of credit control

a) Qualitative c) Quantitative
b) Restrictive d) None of these

55. In India finance commission is constituted in every………

a) Year c) Two years
b) Fifth Year d) Ten years

56. The Securities Contract Regulation Act was enacted in the year…
a) 1949 c) 1959
b) 1956 d) 1991

57. SEBI was constituted in the year……..

a) 1998 c) 1988
b) 2008 d) 2018

58. SEBI got statutory body status after enacting ……………..

a) Securities and Exchange Board of India Act 1992 b) Securities and Exchange board of India Act 1988
c) Securities Contract Regulation Act 1956 d) None of these

59. ILO was founded in ….

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a) 1959 c) 1969
b) 1919 d) 1949
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60. ILO is headquartered at….

a) Geneva c) New york
 89 | P a g e UGC NET-COMMERCE SESSION-2022

b) London d) New Delhi

61. Which among the following is limitation of Trade Union in India

a) Multiplicity of unions c) Outside leadership
b) Lack of integrity d) All the above

62. NDC stands for……

a) National Defense Council c) National Development Council
b) National Development Committee d) None of these

63. Which one is not the main objective of fiscal policy of India?
a) To increases liquidity in the economy c) To minimize inequalities of income
b) To promote price stability d) To promote employment opportunity

64. Which of the following denote the structural changes in Indian economy?
a) Service sector contribution has gone up. c) Secondary sector has not changed much
b) Primary sector contribution has gone down d) All the above
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65. Which one is not an element of legal environment?

a) Act of Parliamentarians in Lok Sabha c) Indian Contract Act, 1972
b) Indian Partnership Act 1932 d) Negotiable Instruments Act 19881

66. Public Enterprise is defined as…..

a) An organization run by joint efforts of Centre and State Governments.
b) An organization which caters to the needs relating to public utilities.
c) An organization in which capital is invested by public.
d) An organization owned and managed by public
HILAL AHMAD:

67. The fundamental set of assumptions, values, and ways of doing things, that has been accepted by most
of a company’s members is called its
a) Culture c) Environment
b) Atmosphere d) Values

68. Key actors in a business’s immediate environment include

a) Regulations c) Technology
b) Economy d) Politics

69. FEMA is a replacement to which Act?

a) MRTP Act c) FERA
b) Competition Act d) Companies Act

70. Critical success factors in the public sector usually relate to one of the following:
a) More than one stakeholder c) The expectation of service users
b) Government imposed standards d) The expectation of providers of fund

71. The first year plan was launched on……

a) 1st April 1951 c) 1st April 1955
b) 1st April 1952 d) 1st April 1960

72. What was the duration of 12th plan?

89

a) 2011-15 c) 2009-14
b) 2012-17 d) 2013-18
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73. NITI in NITI Aayog stands for…..

a) National Institute for Transforming India b) National Institute for Trade in Inida
 90 | P a g e UGC NET-COMMERCE SESSION-2022

c) National Institute for Transforming Industries d) None of the above

74. Who is the current Chairman of NITI Aayog

a) Narendra Modi c) Nirmala Sitaraman
b) Amithab kand d) None of these

75. NITI Aayog was formed on

a) 1st April 2015 c) 1st march 2015
c) 1st January 2015 d) 1st January 2016

76. Who is the Chairperson of NITI Aayog?

a) President c) Finance Minister
b) A senior IAS Officer d) Prime Minister

77. Who represents a State in NITI Aayog Governing council?

a) State Finance minister c) Chief Minister
b) Governor d) Chief Secretary
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78. Who represents a State in NITI’s Regional council?

a) State Finance minister c) Governor
b) Chief Minister d) Chief Secretary

79. NITI Aayog is headquartered in …..

a) Delhi c) Noida
b) Chennai d) Kolkata

80. Planning Commission of India is dissolved on…

a) 1st January 2015 c) 17th August 2014
HILAL AHMAD:

b) 1st April 2014 d) 15th August 2014

81. Who was the predecessor of WTO?

a) GATT c) GAAT
b) ITO d) UNCTAD

82. GATT was transformed into a WTO with effect from …….
a) April 2000 c) March 1991
b) January 1995 d) April 1995
83. GATT was formed to fill up the gap of…… charter.
a) ITO c) WTO
b) IMF d) IBRD

84. MFA stands for ……

a) Multilateral Finance Agreement c) Multifibre Arrangement
b) Multilateral Federation of Agriculture d) None of these

85. Multilateral trade negotiation under GAAT is called…..

a) Rounds c) Conference
b) Council d) Discussion

86. WTO is headquartered in ……

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a) Paris c) Colombo
b) Geneva d) Washington DC
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87. NTB stands for…..

a) Non- trade barriers c) Non- tariff barriers
 91 | P a g e UGC NET-COMMERCE SESSION-2022

b) No trade between d) None of these

88. IMF was established in ……

a) 1950 c) 1947
b) 1948 d) 1946

89. Expand TRIPs

a) Trade relates aspects of investment property
b) Trade related aspects of intellectual property right
c) Tariff related aspects of international property rights
d) None of the above

90. ASEAN stand for……

a) Association of South East Asian Nations b) Association of South East African Nations
c) Association of South East American Nations d) None of these

91. Expand TRIMs

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a) Tariff related investment measures b) Trade related institutions measuring

c) Trade related investment measures d) None of the above

92. Which is not a tariff barrier?

a) Compound duty c) Specific duty
b) Sliding Scale d) Quota system

93. Which among the following is the advanced form of economic integration?
a) Free trade area c) Economic union
b) Custom union d) Common market
HILAL AHMAD:

94. …….refers to the investment in a foreign country where the investor retain control over the investment.
a) FDI c) FII
b) Portfolio investment d) Investment in GDR

95. Which of the following is not an international organization?

a) SAARC c) ADB
b) ASEAN d) CBDT

96. SAARC was established in……

a) 1995 c) 1985
b) 1972 d) 2002

97. How many members are there in SAARC?

a) 8 c) 9
b) 10 d) 5

98. SAARC is headquartered in …..

a) Dhaka c) Delhi
b) Colombo d) Kathmandu

99. How many Members are there in BRICS

a) 4 c) 6
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b) 2 d) 5
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100. BRICS was established in…..

a) 2005 c) 2006
b) 2010 d) 2012
 92 | P a g e UGC NET-COMMERCE SESSION-2022

1.d 2.a 3.d 4.b 5.a 6.d 7.d 8d. 9.a 10.c 11.b 12.d 13.d 14.d
15.a 16.a 17.c 18.b 19.c 20.d 21.d 22.b 23.c 24.a 25.d 26b. 27.a 28.d
29.c 30.a 31.b 32.c 33.d 34.d 35.a 36.b 37.a 38.c 39.a 40.c 41.a 42.b
43d. 44.a 45.b 46.a 47.d 48.c 49.c 50.b 51.b 52.c 53.c 54.a 55.b 56.b
57.c 58.a 59.b 60.a 61.d 62.c 63.a 64.d 65.a 66.d 67.a 68.a 69.c 70.a
71.a 72.b 73.a 74.a 75.c 76d. 77.c 78.b 79.a 80.c 81.a 82.b 83.a 84.c
85a. 86.b 87. C 88.d 89.b 90.a 91.b 92.d 93.c 94.a 95.d 96.c 97.a 98.d
99.d 100.c
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HILAL AHMAD:
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FOR COMPLETE BOOK

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HILAL AHMAD:

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