LECTURER IN COMMERCIAL PRACTICE NCA – KERALA TECHNICAL EDUCATION

FINAL ANSWER KEY
Question Paper Code: 44/2018/OL
Category Code: 235/2017
Exam: Lecturer in Commercial Practice NCA
Medium of Question: English
Date of Test 05-09-2018
Department Kerala Technical Education
Alphacode A
Question1:-Name the person associated with ‘Kuttamkulam Struggle’ in Thrissur as a protest against untouchability.
A:-P. K. Kumaran Master
B:-C. Kesavan
C:-K. Kelappan
D:-A. K. Gopalan
Correct Answer:- Option-A
Question2:-Who organised Cheramar Mahajan Sabha in 1921 ?
A:-Ayyankali
B:-Dr. Ayyathan Gopalan
C:-Pampady John Joseph
D:-M. C. Joseph
Correct Answer:- Option-C
Question3:-Who translated Rabindranath Tagor’s Gitanjali into Malayalam ?
A:-Kumaran Asan
B:-G. Sankara Kurup
C:-Ponkunnam Varky
D:-Kesava Dev
Correct Answer:- Option-B
Question4:-The President of Vakkom Moulavi Foundation Trust (VMFT).
A:-Dr. N. A. Karim
B:-Vakkom Majeed
C:-A. Suhair
D:-Dr. Muhammad Iqbal
Correct Answer:- Option-A
Question5:-The new Vice Chancellor of Malayalam University
A:-Dr. E. Radhakrishnan
B:-K. Jayakumar
C:-Dr. Anil Vallathol
D:-Gopinath Revindran
Correct Answer:- Option-C
Question6:-In the Indian Constitution, the term ‘Cabinet’ appears only in
A:-Article 358
B:-Article 352
C:-Article 71
D:-Article 28
Correct Answer:- Option-B
Question7:-Name the India-Nepal joint military exercise which was conducted recently
A:-Hand-in-Hand
B:-Lamitye
C:-Surya Kiran XI
D:-Al-Nagah
Correct Answer:- Option-C
Question8:-The Social Justice Department was established in Kerala in
A:-September 1978
B:-October 1980
C:-October 1985
D:-September 1975
Correct Answer:- Option-D
Question9:-The present Chairperson of Kerala State Women’s Commission is
A:-K. C. Rosakutty
B:-M. C. Josephine
C:-Chinta Jerome
D:-M. Kamalam
Correct Answer:- Option-B
Question10:-In which district of Kerala is The Indian Institute of Space Science and Technology located ?
A:-Ernakulam
B:-Kozhikode
C:-Thiruvananthapuram
D:-Malappuram
Correct Answer:- Option-C
Question11:-Nair Service Society (NSS) was formed in
A:-October 1924
B:-September 1916
C:-November 1927
D:-October 1914
Correct Answer:- Option-D
Question12:-By which among the following Amendments of the Constitution of India was Delhi designated as the National
capital territory ?
A:-`69^(th)` Amendment Act
B:-`63^(rd)` Amendment Act
C:-`75^(th)` Amendment Act
D:-`16^(th)` Amendment Act
Correct Answer:- Option-A
Question13:-Who among the following started Lokamanayan news paper ?
A:-T. R. Krishnaswamy Iyer
B:-K. Kelappan
C:-Kurur Neelakandan Namboodiripad
D:-C. V. Kunjiraman
Correct Answer:- Option-C
Question14:-The headquarters of Kerala Sangeetha Nataka Academy in
A:-Thiruvananthapuram
B:-Thrissur
C:-Malappuram
D:-Ernakulam
Correct Answer:- Option-B
Question15:-Who wrote the book “Old History, New Geography, Bifurcating Andra Pradesh ” ?
A:-Jayaram Ramesh
B:-M. C. Joseph
C:-Subramanya Swami
D:-Manohar Parikkar
Correct Answer:- Option-A
Question16:-The National Disaster Management Authority of India is chaired by
A:-The President of India
B:-Prime Minister of India
C:-Home Minister of India
D:-None of the above
Correct Answer:- Option-B
Question17:-Which one of the following was a re-curving cyclone that affected the Arabian sea coast of the Indian Peninsula
in 2017 ?
A:-Phailin
B:-Mora
C:-Ockhi
D:-Irma
Correct Answer:- Option-C
Question18:-Identify the wrong statement about ozone gas.
A:-The ozone layer of the atmosphere protects us from harmful UV radiation from the sun
B:-Release of Chloro Fluro Carbons (CFCs) were responsible for the thinning and damage to ozone layer
C:-Inhalation of Ozone is harmful to human beings
D:-Ozone in the atmosphere is found at ground level only
Correct Answer:- Option-D
Question19:-Minamata disease is associated with poisoning due to
A:-Bacteria
B:-Mercury
C:-Sulphur
D:-Argon
Correct Answer:- Option-B
Question20:-The Monazite sands of Kerala are a potential reserve of
A:-Coal
B:-Plutonium
C:-Uranium
D:-Thorium
Correct Answer:- Option-D
Question21:-“The amount of carbon dioxide released into the atmosphere as a result of the activities of a particular
individual, organization or community” is called
A:-Carbon footprint
B:-Ecological footprint
C:-Per capita emission
D:-Carbon balance
Correct Answer:- Option-A
Question22:-Oil spills in water bodies are a man-made hazard, Which of the following is a possible effect of an oil spill in a
water body ?
A:-Increase in dissolved oxygen levels
B:-Decrease in dissolved oxygen levels
C:-No effect on dissolved oxygen levels
D:-None of the above
Correct Answer:- Option-B
Question23:-Which is the only Genetically Modified (GM) crop that is being cultivated in India on a commercial scale ?
A:-Bt Cotton
B:-Bt Brinjal
C:-GM Mustard
D:-GM Tomato
Correct Answer:- Option-A
Question24:-In 2016, India’s first Liquefied Natural Gas (LNG) powered bus was launched in
A:-Maharashtra
B:-New Delhi
C:-Gujarat
D:-Kerala
Correct Answer:- Option-D
Question25:-The two primary scales used to measure intensity of earthquakes are
A:-Doppler and Richter
B:-Beaufort and Richter
C:-Richter and Mercalli
D:-Doppler and Mercalli
Correct Answer:- Option-C
Question26:-“The proprietor of a business is treated as a creditor.” Which accounting concept is based on this assumption ?
A:-Cost concept
B:-Accounting period concept
C:-Business entity concept
D:-Going concern concept
Correct Answer:- Option-C
Question27:-Among the following which one is not a fictitious asset ?
A:-P and L account debit balance
B:-Patents
C:-Organisation expenses
D:-Discount on issue of shares
Correct Answer:- Option-B
Question28:-How do you treat the item of depreciation while preparing final accounts if it appears in Trial Balance ?
A:-Debited to P and L account only
B:-Deducted from the asset concerned in the Balance Sheet
C:-Both A) and B)
D:-None of these
Correct Answer:- Option-A
Question29:-Heavy advertisement expenses incurred to launch a new product is treated as
A:-Capital expenditure
B:-Revenue expenditure
C:-Deferred revenue expenditure
D:-All of these
Correct Answer:- Option-C
Question30:-Which of the following statements is a false one ?
A:-Single entry method is an incomplete record of transactions
B:-A trial balance cannot be prepared under single entry system
C:-Books maintained under single entry are not reliable with that of double entry system
D:-All accounts are maintained under single entry system
Correct Answer:- Option-D
Question31:-A B C share profits and losses in the ratio of `(1)/(2)` ,`(1)/(3)` and `(1)/(6)` respectively. D, a new partner is
admitted with `(1)/(8)` share. Then, what will be new profit sharing ratio ?
A:-`(7)/(16)`, ` (7)/(24)`, `(7)/(48)`, `(1)/(8)`
B:-`(7)/(24)`, `(7)/(48)`, `(7)/(24)`, `(1)/(8)`
C:-`(2)/(8)` , `(7)/(16)`, `(7)/(24)`, ` (1)/(8)`
D:-`(2)/(8)`, `(7)/(48)`, `(7)/(24)`, `(1)/(8)`
Correct Answer:- Option-A
Question32:-At the time of admission of a new partner, when goodwill is raised at full value in which ration the same is
credited to capital accounts of partners ?
A:-Sacrificing ratio
B:-Old profit sharing ratio
C:-New profit sharing ratio
D:-None of these
Correct Answer:- Option-B
Question33:-When an existing company takes over the business of one or more existing companies, it is the case of
A:-Amalgamation
B:-Internal reconstruction
C:-External reconstruction
D:-Absorption
Correct Answer:- Option-D
Question34:-A company may utilise the premium received on issue of shares/debentures for
A:-Payment of dividends
B:-Writing off discount on issue of debentures
C:-Writing off any capital loss
D:-Writing off any revenue loss
Correct Answer:- Option-B
Question35:-The aggregate of the cost of indirect material, indirect labour and indirect expenses is called
A:-Overheads
B:-Cost
C:-Prime cost
D:-Works cost
Correct Answer:- Option-A
Question36:-Among the following, which one is not an expense excluded from cost accounts ?
A:-Capital losses
B:-Income tax
C:-Dividend
D:-Distribution expenses
Correct Answer:- Option-D
Question37:-The time lag between indenting and receiving of materials is know as
A:-Re order level
B:-Danger level
C:-Lead time
D:-EOQ
Correct Answer:- Option-C
Question38:-Re apportionment of service department costs to production department is called
A:-Secondary distribution
B:-Allotment
C:-Primary distribution
D:-Absorption
Correct Answer:- Option-A
Question39:-Following are the information available in respect of A Ltd.
Fixed expenses Rs. 50,000
Sales (value) Rs. 2,00,000
Profits Rs. 50,000
Then, the P/V ratio will be
A:-30%
B:-50%
C:-40%
D:-None of these
Correct Answer:- Option-B
Question40:-Which of the following is not a method of absorbing factory overheads ?
A:-Machine hour rate
B:-Dual hour rate
C:-Direct labour hour rate
D:-Marginal cost rate
Correct Answer:- Option-D
Question41:-Policy formulation and objective determination are the main focus of
A:-Management
B:-Administration
C:-Middle level management
D:-None of these
Correct Answer:- Option-B
Question42:-Which one of the following roles does not constitute management roles as proposed by Henry Mintzberg ?
A:-Training role
B:-Interpersonal role
C:-Decision role
D:-Informational role
Correct Answer:- Option-A
Question43:-___________ refers to those social interactions which do not have consciously coordinated joint purpose.
A:-Communication
B:-Supervision
C:-Informal communication
D:-Formal communication
Correct Answer:- Option-C
Question44:-Which of the following is a quantitative technique of decision making in management ?
A:-Consensus mapping
B:-Brainstorming
C:-Delphi technique
D:-Game theory
Correct Answer:- Option-D
Question45:-The approach of Scientific Management was developed by
A:-Henry Fayol
B:-Elton Mayo
C:-F. W. Taylor
D:-George R. Terry
Correct Answer:- Option-C
Question46:-Which of the following is not a source of short term finance for business ?
A:-Commercial banks
B:-Retained earnings
C:-Public deposits
D:-Trade credits
Correct Answer:- Option-B
Question47:-Which of the following statement is not applicable to financial planning ?
A:-Determining the duties of finance manager
B:-Determining the amount of capital required
C:-Determination of capital structure
D:-Laying down of policies regarding cash control, borrowing and lending
Correct Answer:- Option-A
Question48:-The type of layout suitable for mass production of products in continuous industries is
A:-Process layout
B:-Fixed position layout
C:-Product layout
D:-None of these
Correct Answer:- Option-C
Question49:-The policy of the enterprise to fix a very high price for a new product at the very outset to recover the amount
of capital invested quickly is called
A:-Penetration pricing
B:-Skimming princing
C:-Bait pricing
D:-Full princing
Correct Answer:- Option-B
Question50:-360 degree method in HRM is related to
A:-Employee motivation
B:-Employee morale
C:-Employee selection
D:-Employee performance appraisal
Correct Answer:- Option-D
Question51:-The first stock exchange in India was set up in
A:-New Delhi
B:-Chennai
C:-Mumbai
D:-Kolkatha
Correct Answer:- Option-C
Question52:-__________ is the regulatory authority in the field of capital market.
A:-Banking Regulation Act
B:-SEBI
C:-RBI
D:-None of these
Correct Answer:- Option-B
Question53:-FDI stands for
A:-Foreign Derivatives Investment
B:-Foreign Disposable Investment
C:-Foreign Derived Investment
D:-Foreign Direct Investment
Correct Answer:- Option-D
Question54:-Which one of the following is not a type of derivatives ?
A:-Mutual funds
B:-Futures
C:-Options
D:-Forwards
Correct Answer:- Option-A
Question55:-The market where securities that have already been issued are traded is called __________
A:-Primary market
B:-Secondary market
C:-Tertiary market
D:-All of these
Correct Answer:- Option-B
Question56:-The branch of business dealing with production of goods is known as _________
A:-Commerce
B:-Trade
C:-Industry
D:-Marketing
Correct Answer:- Option-C
Question57:-Which one of the following is not a form of business organisation ?
A:-Company
B:-Sole trader
C:-Partnership
D:-Government Department
Correct Answer:- Option-D
Question58:-The minimum number of directors in the case of a Public Ltd. Company is
A:-4
B:-3
C:-2
D:-5
Correct Answer:- Option-B
Question59:-Debentures Payable to a holder of certificate is called __________
A:-Bearer debentures
B:-Secured debentures
C:-Unregistered debentures
D:-Convertible debentures
Correct Answer:- Option-A
Question60:-Rights issue refers to the shared issued to
A:-Existing directors
B:-Employees
C:-Public
D:-Existing shareholders
Correct Answer:- Option-D
Question61:-Auditors of a company have to report to the
A:-Institutional investors
B:-Board of directors
C:-Shareholders at the annual general meeting
D:-Managing director
Correct Answer:- Option-C
Question62:-EXIM Bank is a _________
A:-Non-banking non-financial company
B:-Non-banking financial company
C:-Scheduled bank
D:-Commercial bank
Correct Answer:- Option-B
Question63:-In life insurance, the insured can recover the loss only if the loss is due to the nearest cause. This principle is
called
A:-Subrogation
B:-Indemnity
C:-Insurable interest
D:-Causa proxima
Correct Answer:- Option-D
Question64:-The method of transferring the rights of the insured in respect of life insurance policy to another party is known
as
A:-Surrender
B:-Assignment
C:-Nomination
D:-None of these
Correct Answer:- Option-B
Question65:-Which of the following is an essential component of intranet ?
A:-PAD
B:-LAN with a minimum 5 PCs
C:-Computer with server software
D:-CRM
Correct Answer:- Option-C
Question66:-Digital products are best suited for `B_(2)C` e-commerce. Because __________
A:-They can be mass-customized and personalised
B:-They are commodity like products
C:-They can be delivered at the time of purchase
D:-All of the above
Correct Answer:- Option-A
Question67:-Which type of communication is based on social relationship among the members ?
A:-Upward communication
B:-Downward communication
C:-Formal communication
D:-Informal communication
Correct Answer:- Option-D
Question68:-Which one of the following documents attests the fact that goods of specified quantity, value and description
are entering the boundary of the country ?
A:-Documentary bill
B:-Bill of entry
C:-Bill of lading
D:-Consular invoice
Correct Answer:- Option-B
Question69:-Under which principle, all the rights of an insured are transferred to insurance company after making payment
of claim ?
A:-Contribution
B:-Average clause
C:-Subrogation
D:-Indemnity
Correct Answer:- Option-C
Question70:-Which of the following is an example of company incorporated by a Special Act of Parliament ?
A:-Indian Oil Corporation Ltd.
B:-LIC of India
C:-State Trading Corporation of India
D:-Bharath Heavy Electricals Ltd.
Correct Answer:- Option-B
Question71:-Which one of the following is not an instrument of credit control under banking system ?
A:-Tax rates
B:-Cash reserve ratio
C:-Bank rate
D:-Moral suasion
Correct Answer:- Option-A
Question72:-The Act which is applicable for the registration of NBFCs is
A:-SBI Act
B:-RBI Act
C:-Companies Act
D:-None of these
Correct Answer:- Option-C
Question73:-_________ is known as “the soft loan window” of the World Bank.
A:-IFC
B:-IMF
C:-IBA
D:-IDA
Correct Answer:- Option-D
Question74:-In India, the custodian of monetary reserves of the country is
A:-NABARD
B:-RBI
C:-SBI
D:-IDBI
Correct Answer:- Option-B
Question75:-The “scheme of lead bank” was introduced in India in the year
A:-1969
B:-1971
C:-1980
D:-1991
Correct Answer:- Option-A
Question76:-The system of Unit Banking is originated in
A:-U. K.
B:-HongKong
C:-USA
D:-India
Correct Answer:- Option-C
Question77:-“No man must grow rich out of another person’s loss”. Which type of contract is based on this principle ?
A:-Express contract
B:-Implied contract
C:-Executed contract
D:-Quasi contract
Correct Answer:- Option-D
Question78:-A contract which is dependent on the happening or non-happening of some event is called _____________
A:-Absolute contract
B:-Contingent contract
C:-Wagering contract
D:-None of these
Correct Answer:- Option-B
Question79:-In India, the Factories Act was passed in the year __________
A:-1939
B:-1947
C:-1948
D:-1951
Correct Answer:- Option-C
Question80:-Which one of the following is not a negotiable instrument ?
A:-Bill of exchange
B:-Promissory note
C:-Cheque
D:-Hundi
Correct Answer:- Option-D
Question81:-Which one of the following is not a form of e-banking ?
A:-Cheque book
B:-ATM
C:-Smart card
D:-Tele Banking
Correct Answer:- Option-A
Question82:-RTGS stands for
A:-Rigid Time Gross Settlement
B:-Real Time Gross Settlement
C:-Real Tune Gross Settlement
D:-Reserve Time Gross Settlement
Correct Answer:- Option-B
Question83:-The Act contains the provisions for health and safety measures of employees is
A:-Employee Compensation Act, 1923
B:-Industrial Dispute Act, 1947
C:-Trade Union Act, 1926
D:-None of these
Correct Answer:- Option-D
Question84:-Which one of the following is not a right of an unpaid seller against the goods sold as per sale of Goods Act ?
A:-Right for interest
B:-Right of lien
C:-Right of stopping the goods in transit
D:-Right of re sale
Correct Answer:- Option-A
Question85:-Which of the following statement is incorrect ?
A:-E-banking is virtual banking
B:-E-banking services include phone banking and home banking
C:-Debit-cards are known as check cards
D:-ATM is one of the major channels used for electronic banking
Correct Answer:- Option-C
Question86:-Which of the following is related with the question “Do higher interest rates slow the economy and lower
inflation ?”
A:-Deductive Method
B:-Inductive Method
C:-Normative Economics
D:-Positive Economics
Correct Answer:- Option-D
Question87:-How the demand curve for cigarettes changes when there is a positive impact of public service announcements
and governments’ mandatory health warnings on cigarette packages ?
A:-There will be a movement along the demand curve
B:-No change in demand curve
C:-Shift the demand curve for cigarettes to the left
D:-Shift the demand curve for cigarettes to the right
Correct Answer:- Option-C
Question88:-Which among the following is a factor affecting supply curve of a commodity ?
A:-Internet shopping and auctions allow consumers to compare the prices of different dealers more easily and drives
high cost sellers out of business
B:-Increase in tariff on imported automobiles increases total automobile supply
C:-If truck prices goes up, the supply of cars rises
D:-Computerised manufacturing lowers production costs and decreases supply
Correct Answer:- Option-A
Question89:-Which of the following is the effect of imperfect competition ?
A:-Too low price and too high output
B:-It leads to price that rise above cost and to consumer purchases that are reduced below efficient levels
C:-Increase in economic efficiency
D:-None of the above
Correct Answer:- Option-B
Question90:-When the oligopolists find it profitable to sell in each other’s territory markets, then this act is known as
A:-Phantom freight
B:-Pittsburgh-plus princing system
C:-Cross-hauling
D:-Both A) and B)
Correct Answer:- Option-C
Question91:-Spending money in socially unproductive efforts to acquire, maintain or exercise monopoly is called
A:-Price regulation
B:-Rent seeking
C:-Deadweight loss
D:-Marginal expenditure
Correct Answer:- Option-B
Question92:-Why economic profit is smaller than accounting profit ?
A:-Economic profit is total revenue minus total cost including both explicit and implicit costs
B:-Accounting profit is the total revenue minus total explicit cost
C:-Economic cost include all opportunity cost when analysing a firm, whereas accounting cost measure only explicit
cost
D:-All the above
Correct Answer:- Option-D
Question93:-Real GDP is calculated by using the formula
A:-Nominal GDP `-:` Real GDP
B:-Nominal GDP − Real GDP
C:-Nominal GDP `-:` “ ` ` GDP Deflator
D:-GDP Deflator ÷ GNP
Correct Answer:- Option-C
Question94:-The price support policy in India aims at
A:-Maximum production of essential commodities
B:-Increasing the prices of rice, wheat, jute, cotton, sugarcane etc. so that producers’ of those goods can receive higher
incomes
C:-Market regulation
D:-None of the above
Correct Answer:- Option-B
Question95:-The statistical method which connects an old index number series with a revised series in order to make the
series continuous is called
A:-Splicing
B:-Deflating
C:-Fixed base method
D:-Chain base method
Correct Answer:- Option-A
Question96:-If the data set contains even number of items, then median is
A:-Average of two middle items
B:-Middle item of the array
C:-Most often repeated value in the data set
D:-Sum of values of all observations
Correct Answer:- Option-A
Question97:-Which among the following is the property of regression coefficient ?
A:-Arithmetic mean of regression coefficients is lower than the coefficients of correlation
B:-Correlation coefficient is the geometric mean of the two regression coefficients
C:-If one regression coefficient is greater than one, then other regression coefficient would also be greater than one
D:-All the above
Correct Answer:- Option-B
Question98:-Which among the following is a type of non-random sampling design ?
A:-Shopping-Mall intercept sampling
B:-Snowball sampling
C:-Both A) and B)
D:-Cluster sampling
Correct Answer:- Option-C
Question99:-Which among the following is a feature of correlation coefficients ?
A:-A high numerical value of ‘r’ that is value close to +1 or –1 represents a strong linear relation
B:-A value of ‘r’ close to zero means that the linear association is very weak
C:-The magnitude of ‘r’ indicates the strength of linear relation, whereas its sign indicates the direction
D:-All the above
Correct Answer:- Option-D
Question100:-If the Lorenz curve is nearer to the line of equal distribution, the dispersion is
A:-Zero
B:-Greater
C:-Smaller
D:-Equal to one
Correct Answer:- Option-C