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TRE1 — General Studies And Business Studies

· Set A

GS: Hindi / English · Language questions stay in their original language.

Instructions

120 questions · 120 marks · 2 hours

Choose one option per question.

Tap an option to check it, or open “See answer”.

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Question 51
——— are network of retail shops that are owned and operated by manufacturers dealing in standardized and branded consumer products.
See answer

Correct answer: (B) Chain stores
A chain of retail shops owned and run by the manufacturers, selling standardized branded goods, is called chain stores.

1 marks · 2023 · Set A
Question 52
Consider the following statements regarding the World Trade Organization (WTO): I. WTO classifies member countries as developing and developed. II. WTO acts as a dispute settlement body. III. Developing country status in WTO brings certain rights. Which of the following statements is correct?
See answer

Correct answer: (C) Statements II and III only
The WTO acts as a dispute settlement body, and developing-country status in it is self-declared—statements II and III are right. The WTO does not itself classify countries as developed or developing.

1 marks · 2023 · Set A
Question 53
Which of the following is the correct formula for the arithmetic mean?
See answer

Correct answer: (A) The total sum of values of observations divided by the number of observations
The arithmetic mean is found by dividing the sum of the values of the observations by the number of observations.

1 marks · 2023 · Set A
Question 54
The number of observations smaller than ——— is the same as the number of observations larger than it.
See answer

Correct answer: (A) Median
The median is the value with as many observations below it as above—it divides the data exactly in the middle.

1 marks · 2023 · Set A
Question 55
The measure of dispersion which ignores the signs of deviations from a central value is
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Correct answer: (B) Mean deviation
In mean deviation the deviations from a central value are taken without their signs, in absolute value, so that is the measure meant.

1 marks · 2023 · Set A
Question 56
The time period for which an index number is determined is known as
See answer

Correct answer: (B) Current period
The period for which an index number is worked out is called the current period; the period it is compared against is the base period.

1 marks · 2023 · Set A
Question 57
The present ages of P and Q are represented in the ratio as 6:4. Five years ago their ages were in the ratio 5:3. What are their present ages?
See answer

Correct answer: (B) 30 years and 20 years
Take the present ages as 6x and 4x. Five years ago (6x − 5) : (4x − 5) = 5 : 3, so 18x − 15 = 20x − 25, that is x = 5. The ages are 30 years and 20 years.

1 marks · 2023 · Set A
Question 58
Alpha and Beta each invested ₹10,000 for 2 years at the same rate of interest of 10% p.a., but Beta’s investment is compounded annually and Alpha’s investment is charged on simple interest. What amount did Beta receive more than Alpha?
See answer

Correct answer: (B) ₹100
Simple interest gives Alpha ₹2,000. Compounding gives Beta 10,000 × 1.1² − 10,000 = ₹2,100. The difference is ₹100.

1 marks · 2023 · Set A
Question 59
Margin of safety in break-even analysis is
See answer

Correct answer: (A) Actual sales − Sales at break-even point
The margin of safety is actual sales minus sales at the break-even point—it shows how far sales may fall before a loss begins.

1 marks · 2023 · Set A
Question 60
The Green Revolution was successful in Punjab, Haryana, ——— and some parts of Rajasthan.
See answer

Correct answer: (A) Uttar Pradesh
The Green Revolution succeeded best in Punjab, Haryana, western Uttar Pradesh and parts of Rajasthan, where irrigation was already in place.

1 marks · 2023 · Set A
Question 61
Which of the following programs was initiated by the Government of India to improve the food and nutritional levels of the poor in the country?
See answer

Correct answer: (D) More than one of the above
The Mid-Day Meal Scheme, the Integrated Child Development Scheme and the Public Distribution System were all launched for the food and nutrition of the poor, so the answer is ‘more than one’.

1 marks · 2023 · Set A
Question 62
Which of the following is not the problem of human capital formation?
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Correct answer: (E) None of the above
A growing population, the brain drain and low educational standards are all problems of human capital formation in India, so the answer is ‘None of these’.

1 marks · 2023 · Set A
Question 63
Which of the following statements is true about unemployment in the rural sector of India?
See answer

Correct answer: (B) Disguised unemployment is a common form of unemployment in rural India
Disguised unemployment is the chief form in rural India—more people work a field than it needs, and output does not fall if some withdraw.

1 marks · 2023 · Set A
Question 64
Specialized knowledge and skill is required in which of the following?
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Correct answer: (A) Profession
A profession calls for specialized knowledge and skill, and for a certificate from a professional body—a doctor or a chartered accountant, for instance.

1 marks · 2023 · Set A
Question 65
In 1987, the United Nations Brundtland Commission defined sustainability as
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Correct answer: (B) Development which meets the needs of present generation without compromising the ability of future generation to meet their own needs
By the Brundtland Commission (1987), sustainable development meets present needs without destroying the ability of future generations to meet their own.

1 marks · 2023 · Set A
Question 66
Cooperative societies are compulsorily registered under which of the following Acts?
See answer

Correct answer: (C) The Cooperative Societies Act, 1912
Cooperative societies must be registered under the Cooperative Societies Act, 1912.

1 marks · 2023 · Set A
Question 67
Huge industrial organizations extending their industrial and marketing operations through a network of own branches in many countries are known as
See answer

Correct answer: (C) Global enterprises
Huge organizations that spread their industrial and marketing operations through a network of branches in many countries are called global enterprises, or multinationals.

1 marks · 2023 · Set A
Question 68
What is the full form of CWC?
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Correct answer: (D) More than one of the above
CWC stands both for Central Water Commission and for Central Warehousing Corporation, so the answer is ‘more than one’.

1 marks · 2023 · Set A
Question 69
When a property is insured by more than one insurance (i.e., in case of multiple insurance), the insurers are to share losses in what proportion?
See answer

Correct answer: (B) Ratio of amount assured
In multiple insurance each insurer bears the loss in the proportion its sum insured bears to the total sum insured—the principle of contribution.

1 marks · 2023 · Set A
Question 70
Which among the following is an allied service provided by a bank?
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Correct answer: (D) More than one of the above
Locker facility, warehousing and underwriting are all subsidiary services a bank provides, so the answer is ‘more than one’.

1 marks · 2023 · Set A
Question 71
——— refers to the act of protecting information by transforming it into an unreadable format.
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Correct answer: (C) Cryptography
Keeping information safe by turning it into an unreadable form is cryptography; the unreadable text it produces is ciphertext.

1 marks · 2023 · Set A
Question 72
What is the full form of EDI?
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Correct answer: (C) Electronic Data Interchange
EDI stands for Electronic Data Interchange—the direct computer-to-computer exchange of business documents.

1 marks · 2023 · Set A
Question 73
Powers, rights, remuneration, qualification and duties of directors are discussed clearly in which of the following documents?
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Correct answer: (B) Articles of Association
The powers, rights, remuneration, qualifications and duties of the directors are all set out in the Articles of Association, the company's internal rule book.

1 marks · 2023 · Set A
Question 74
A prospectus or statement in lieu of prospectus is filed with the Registrar of Companies; it used to be issued by
See answer

Correct answer: (A) A public company seeking investment from public
A prospectus is issued by a public company that wants investment from the public; one that does not invite the public files a statement in lieu of prospectus instead.

1 marks · 2023 · Set A
Question 75
A proposed name of company for registration is considered undesirable, if
See answer

Correct answer: (D) More than one of the above
A name identical with that of an existing company, one closely resembling it, and one using the emblem of the Government of India or the United Nations are all undesirable—so the answer is ‘more than one’.

1 marks · 2023 · Set A
Question 76
The MSMED Act which addresses the issues relating to medium scale and service related enterprises’ definition, credit, marketing and technology upgradation came into force on
See answer

Correct answer: (A) October 2006
The Micro, Small and Medium Enterprises Development Act came into force in October 2006.

1 marks · 2023 · Set A
Question 77
Permission for distribution of services in another country under a specific copyright and tight control over operations is called
See answer

Correct answer: (A) Franchising
Permission to deliver services in another country under a specific copyright and tight control of operations is franchising; the same arrangement for goods is called licensing.

1 marks · 2023 · Set A
Question 78
Which of the following documents is not required for obtaining export license?
See answer

Correct answer: (C) Letter of Credit
An export licence needs the IEC number and a bank account, but a letter of credit is the importer's assurance of payment—it is not required for the licence.

1 marks · 2023 · Set A
Question 79
——— was set up with prime objective of professionalizing the country’s foreign trade management by providing training, research and data dissemination.
See answer

Correct answer: (B) Indian Institute of Foreign Trade (IIFT)
The Indian Institute of Foreign Trade (IIFT) was set up mainly to professionalize the country's foreign trade management through training, research and the dissemination of data.

1 marks · 2023 · Set A
Question 80
Data represented through arithmetic line graph helps in understanding
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Correct answer: (A) Long-term trend
An arithmetic line graph shows how values rise and fall over time, which is how the long-term trend becomes visible.

1 marks · 2023 · Set A
Question 81
——— help to integrate formal credit systems into rural societies to encourage the habit of savings among the poor.
See answer

Correct answer: (B) Self-help groups
Self-help groups encourage the habit of saving among the poor and tie them into the formal credit system, which loosens the hold of the moneylender.

1 marks · 2023 · Set A
Question 82
Which of the following is an advantage of a sole proprietorship?
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Correct answer: (D) More than one of the above
Ease of starting the business, direct incentive and a sense of achievement are all merits of sole proprietorship, so the answer is ‘more than one’.

1 marks · 2023 · Set A
Question 83
The form of organization which a public enterprise may take is
See answer

Correct answer: (D) More than one of the above
A public enterprise may take the form of a departmental undertaking, a statutory corporation or a government company, so the answer is ‘more than one’.

1 marks · 2023 · Set A
Question 84
When one party grants the other party the right to use the asset in return for a periodic payment, it is known as
See answer

Correct answer: (B) Lease financing
Giving one party the right to use an asset against periodic payments is lease financing; ownership stays with the lessor.

1 marks · 2023 · Set A
Question 85
Which of the following is a data set of first-hand information?
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Correct answer: (D) More than one of the above
Primary data and a census both gather information directly from the source, so the answer is ‘more than one’.

1 marks · 2023 · Set A
Question 86
Which of the following protocols was followed related to banning the use of chlorofluorocarbon, bromine and chlorine compounds?
See answer

Correct answer: (C) Montreal
The ban on chlorofluorocarbons and on bromine and chlorine compounds came under the Montreal Protocol, since they damage the ozone layer.

1 marks · 2023 · Set A
Question 87
Which of the following contracts is signed by the promoters during the promotion of the company with the third party on behalf of the proposed company?
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Correct answer: (A) Preliminary contract
Contracts the promoters make with third parties on behalf of the proposed company, while it is being promoted, are called preliminary (or pre-incorporation) contracts.

1 marks · 2023 · Set A
Question 88
Which of the following is not a feature of privatization policy of the government?
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Correct answer: (B) Reduction of the tax rates
Privatization policy covers disinvestment and the contraction of the public sector, but a cut in tax rates belongs to liberalization's tax policy, not to privatization.

1 marks · 2023 · Set A
Question 89
In e-banking, the full form of RTGS is
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Correct answer: (B) Real-Time Gross Settlement
RTGS stands for Real-Time Gross Settlement, in which every payment is settled singly and at once.

1 marks · 2023 · Set A
Question 90
The minimum number of members required to form a public company is
See answer

Correct answer: (B) 7
A public company needs at least seven members; a private company needs two.

1 marks · 2023 · Set A
Question 91
Classic Company sold a plant asset that originally cost ₹50,000 for ₹22,000 cash. If it correctly reports a ₹5,000 gain on this sale, the accumulated depreciation on the asset at the date of sale must have been
See answer

Correct answer: (A) ₹33,000
With a profit of ₹5,000 on a sale price of ₹22,000, the book value was ₹17,000. Accumulated depreciation = 50,000 − 17,000 = ₹33,000.

1 marks · 2023 · Set A
Question 92
From the viewpoint of a shareholder, which of the following relationships do you consider of least significance?
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Correct answer: (C) Net income is greater than the amount of working capital
Net income exceeding the amount of working capital compares two quantities of quite different kinds, so a shareholder would attach the least importance to it.

1 marks · 2023 · Set A
Question 93
In financial statement analysis, the most difficult of the following items to predict is whether
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Correct answer: (E) None of the above
Market share, the ability to repay debt and next year's profit can each be forecast to some degree from the financial statements, but by the key none of them is taken as the hardest—so the answer is ‘None of these’.

1 marks · 2023 · Set A
Question 94
According to the conceptual framework, the objectives of financial reporting are based on
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Correct answer: (D) More than one of the above
In the conceptual framework the objectives of financial reporting rest both on the stewardship and performance of management and on the generally accepted accounting principles, so the answer is ‘more than one’.

1 marks · 2023 · Set A
Question 95
The three major types of business organizations are
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Correct answer: (E) None of the above
The three major forms of business organization are sole proprietorship, partnership and company. No option gives these three, so the answer is ‘None of these’.

1 marks · 2023 · Set A
Question 96
The Human Resource Department of any organization has to ensure the adequate number of employees available throughout the organization. At which level does a human resource manager work?
See answer

Correct answer: (D) More than one of the above
The human resource manager works with top management in framing policy and at the middle level in carrying it out, so the answer is ‘more than one’.

1 marks · 2023 · Set A
Question 97
One of the organizational objectives of management is ‘growth of a business’. Which one of the following is not associated with measurement of business growth?
See answer

Correct answer: (C) Number of creditors
Growth is measured by the volume of sales and the number of employees, but a rising number of creditors is not growth—it is a sign of liability.

1 marks · 2023 · Set A
Question 98
“Management aims at reducing costs and increasing productivity.” Which importance of management is highlighted in the given statement?
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Correct answer: (B) Management increases efficiency
Cutting cost and raising productivity is exactly what efficiency means, so the statement brings out management's importance in increasing efficiency.

1 marks · 2023 · Set A
Question 99
An investor deposits ₹600 in a bank and plans to leave it there for four years. The value of the account after four years if it earns 10% simple interest per year for this period will be
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Correct answer: (A) ₹840
Simple interest = 600 × 10% × 4 = ₹240, so after four years the account stands at 600 + 240 = ₹840.

1 marks · 2023 · Set A
Question 100
Match the objectives of List–I with their respective definition in List–II: List–I: a. Survival, b. Profit, c. Growth. List–II: 1. Increase in the number of employees, the number of products or increase in the capital; 2. A vital incentive for the continued successful operation of the enterprise; 3. An organization must earn enough revenues to cover costs. Select the correct answer using the codes given below the Lists.
See answer

Correct answer: (C) a-3, b-2, c-1
Survival means the enterprise continuing to exist, profit is what keeps it running successfully, and growth is an increase in employees, products or capital—which gives the matching a-3, b-2, c-1.

1 marks · 2023 · Set A
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