TS SET Paper 2 Mock Test - 5 (Commerce) - TS TET MCQ

The correct answer is A ‐ lV, B ‐ lll, C ‐ ll, D ‐ l.

Key PointsGoods - Section 2(7) of the Sale of Goods Act, 1930 defines "goods" to include all transportable property types, such as stocks, shares, crops, grass, severable objects, etc.

Important PointsActionable claim-  Any debt that is connected to a benefit derived from movable property that is not in possession and for which relief can be sought in civil court is referred to as a "actionable claim." Further It means that if no action is made to realise the claim, it cannot be regarded to be an actionable claim for the reason that no action was taken to realise it.

Appropriation of goods- Appropriation of goods under the sale of goods act,1930 as follows -

1. Deliver as per description - The property in the goods passes to the buyer when there is a contract for the sale of undetermined or future goods by description and goods matching that description and in a deliverable state are unconditionally appropriated to the contract, either by the seller with the buyer's consent or by the buyer with the seller's consent. Before or after the appropriation is made, this assent may be given and may be expressed explicitly or inferred. 
2. Delivery to carrier - When the seller delivers the products to the buyer, a carrier, or another bailee (whether or not identified by the buyer) in accordance with the contract and does not reserve the right to dispose of the goods, he is understood to have unreservedly appropriated the goods to the contract.

Existing goods- According to section 6 of sales of goods act 1930,those goods as are existence at the time of the contract of sale or those goods owned or possessed by the seller at the time of contract of sale. There are three types of existing goods - 

• Specific Goods 
• Ascertained Goods
• Unascertained Goods

Future goods - According to Section 2(6) of Sales of goods Act 1930, those goods are to be manufactured or produced or acquired by seller after making of contract of Sale. For examples, A agrees to B to sell all wheats to be produced in his field this years.

The Promotion Mix refers to the blend of several promotional tools used by the business to create, maintain and increase the demand for goods and services.

The wholesalers primarily use Personal selling as the key promotional mix strategy.

Penetration pricing refers to a marketing strategy used by businesses to attract customers to a new product or service. Penetration pricing is the practice of offering a low price for a new product or service during its initial offering to lure customers away from competitors.

The correct answer is Economic environment.

Key PointsEnvironment - Environment can be summarized as the effects of all the living and non-living things that have an impact on human life. Non-living or abiotic elements include water, land, sunshine, rocks, and air, whereas all live or biotic elements are animals, plants, forests, fisheries, and birds.

Important Points Economic environment -

• The business is directly and significantly impacted by the economic environment.
• An organization in the business world completely depends on its economic environment for its survival, expansion, and success.
• Economic conditions, economic policies, and economic systems make up the bulk of the economic environment. Infrastructure, income nationally, and fundamental economic principles.
• In addition to being major components of the overall economic environment, money supply, economic phases associated with saving, and trade cycles are all thought to be important.

The correct answer is Gross error.

Key Points

Gross error

• ​It is caused by careless handling of experimental set up.
• These types of error mainly comprise of human mistakes in reading instruments and recording and calculating.
• Computational mistakes, incorrect adjustment, and improper application of instruments can lead to gross errors.
• It can be avoided by taking thorough care and verifying the calculations and observations.

Additional Information

Systematic errors  ​

• They occur as a result of a flaw in the experiment design or apparatus.
• Since there is a flaw in the design set up, it cannot be reduced by conducting repeat trials.
• They can cause the measured values to be consistently higher or lower than the actual value.
• They can also be divided into following-
  • Environmental Errors
  • Observational Errors
  • Instrumental Errors

Random errors

• ​They occur irregularly and hence are random.
• They can arise due to random and unpredictable fluctuations in experimental conditions such as unpredictable fluctuations in temperature, voltage supply, mechanical vibrations of experimental set-ups, etc.
• These errors can be reduced by calculating the mean and median of the number of repeated measurements.
• It cannot be eliminated, but it can be controlled by using larger sample sizes and efficient statistical analysis..

Human Resource refers to the total knowledge, skill, creative abilities, talent and aptitudes of an organization's workforce as well as the value, attitudes, and beliefs of the individuals involved this to a definition by Leon C. Megginson.

Statement (i) is correct. The greater a firm's degree of operating leverage, the more its EBIT will vary with fluctuations in sales as it is computed by dividing the contribution by operating profit.

The higher the degree of operating leverage (DOL), the more sensitive a company's earnings before interest and taxes (EBIT) are to changes in sales, assuming all other variables remain constant. The DOL ratio helps analysts determine what the impact of any change in sales will be on the company's earnings.

• Principles of Political Economy and Taxation is a book by David Ricardo on economics, published in 1817.
• The General Theory of Employment, Interest, and Money was written by the English economist John Maynard Keynes, published in 1936.
• Value and Capital is a book by the British economist John Richard Hicks, published in 1939.
• Revision of Demand Theory was first published in 1956 written by the late Harry Johnson.

The correct answer is David Ricardo.

Key Points

•  The quote "The laborers are paid to enable them to subsist and perpetuate the race without increase or diminution" is often attributed to David Ricardo, a British economist who lived from 1772 to 1823.
• This quote reflects Ricardo's theory of wages, which argued that wages tend to remain at a subsistence level, as employers will only pay workers enough to cover their basic needs and to maintain a stable population level.
• According to Ricardo, any increase in wages would result in an increase in the population, which would eventually drive wages back down to subsistence levels.

The correct answer is Psychological elements.

Key Points

• In the passage, "On an internal level, psychological factors such as perception, motivation, and attitudes play a pivotal role in shaping an individual's response to marketing stimuli."
• The passage explicitly states that psychological factors are internal elements shaping consumer behavior, supporting option 3.
• The other options (1. Cultural influences, 2. Economic considerations, 4. Environmental factors) do not accurately reflect the internal factors mentioned in the passage.

Additional InformationThe mention of perception, motivation, and attitudes as psychological factors provides a more detailed understanding of the internal elements influencing consumer behavior.

The correct answer is It has raised ethical concerns in data privacy.

Key Points

• In the passage, "However, this sophistication comes with its own set of challenges, as navigating the ethical considerations of data privacy and the potential for manipulation requires careful scrutiny."
• The passage mentions that big data has raised ethical concerns in data privacy, aligning with option b.
• The other options (1. It has simplified the analysis of small datasets, 3. It is ineffective in discerning patterns and trends, 4. It has limited applications in marketing) do not accurately represent the challenges associated with big data, as described in the passage.

• Economic crisis is a severe and sudden upset in any part of the economy. It could be a stock market crash, a spike in inflation or unemployment, or a series of bank failures.
• The IMF oversees the stability of the world's monetary system, while the World Bank's goal is to reduce poverty by offering assistance to middle-income and low-income countries
• In 1991, India met with an economic crisis relating to its external debt. India approached the International Bank for Reconstruction and Development (IBRD), popularly known as World Bank and the International Monetary Fund (IMF), and received $7 billion as loan to manage the crisis. Therefore Option 3 is the correct answer.

The correct answer is AI Ethicist.

Key Points

As per the passage:

It’s mentioned in the passage that "It has also given birth to the occupation of AI ethicists," signifying the origin of a new job role concurrent with the rise of AI developments.

Key Points

• A stereotype is a fixed, overly generalised belief about a certain group or class of people that is used in social psychology.
• Stereotyping implies that an individual possesses a wide range of characteristics and abilities that we presume all members of that group share.
• For instance, a "hells angel" biker wears leather clothing.

Important Points

Stereotyping: 

• A stereotype is a preconceived idea that is fixed and overly generalised about a certain group or class of individuals.
• These presumptions rest on the false assumption that each member of the group shares a particular set of traits.
• Many stereotypes are a direct result of numerous political, social, or economic events and have a lengthy and occasionally contentious history.
• Making assumptions about a person or group of individuals based on criteria such as gender, race, religion, or physical characteristics is known as stereotyping.

Additional Information

1. Halo effect: A form of cognitive bias known as the "halo effect" occurs when our overall opinion of a person affects how we feel and think about their character. In essence, your assessment of a person's general impression ("He is kind!") affects your assessment of that person's specific characteristics ("He is also brilliant!"). People's perceptions of one quality can influence their perceptions of other characteristics. Our perception of celebrities as a whole is a terrific illustration of the halo effect in action. People prefer to view them as bright, kind, and amusing since they are viewed as attractive, successful, and frequently likeable.
2. Attribute: The word "pay tribute" and "attribute" have a similar meaning. In this way, a prize winner who honours a motivational lecturer is in a way crediting her success to the professor.
3. Assimilation: In anthropology and sociology, assimilation refers to the process through which people or groups with different ethnic ancestries are assimilated into the dominant culture of a society.

Going rate pricing is when a business sets the price of their product or service based on the market price.

This pricing strategy is often used to price similar products, like commodities or generic items, that have little variation in design and function.

Thus, a firm that produces substitute goods should adopt Going Rate Pricing as its Pricing strategies.

The correct answer is Organising.

Key Points Among the given options, the managerial function of staffing is most closely related to "organizing."

Here's how they are connected:

Staffing: Staffing involves acquiring and organizing the workforce to ensure that the right people are in the right positions. This process includes recruitment, selection, training, and development to structure the organization's human resources effectively.

Organizing: Organizing is one of the primary functions of management and is concerned with designing the structure of the organization. This includes defining roles and responsibilities, establishing reporting relationships, and ensuring that resources, including personnel, are allocated appropriately to achieve the organization's goals.

While staffing is specifically focused on acquiring and managing human resources, the broader process of organizing sets the framework for how those human resources are integrated into the organizational structure.

Production of goods is not a function of marketing management. 

Key Points

Marketing Management: 

• Marketing management refers to the process of planning, organizing, implementing, and controlling marketing activities to create and deliver value to customers and achieve the goals of an organization.
• It involves identifying customer needs and wants, developing marketing strategies to satisfy those needs and wants, and managing the marketing mix, which includes product, price, promotion, and place (distribution).
• Marketing management also involves conducting market research, analyzing market trends, and tracking marketing performance to ensure that marketing objectives are met.
• Effective marketing management is critical to the success of any business, as it helps to attract and retain customers, increase sales and profitability, and build brand loyalty.

Important Points

Functions of Marketing Management:

• Assessing marketing opportunities: Marketing management is responsible for identifying and assessing potential market opportunities, understanding consumer needs and preferences, and conducting market research to gather insights for developing effective marketing strategies.
• Providing effective marketing organization: Marketing management plays a crucial role in establishing and managing an effective marketing organization. This involves designing the marketing structure, allocating resources, managing marketing teams, and ensuring coordination and collaboration within the marketing department.
• Planning marketing activities: Marketing management is responsible for developing marketing plans and strategies to achieve the organization's marketing objectives. This includes identifying target markets, setting marketing goals, determining the marketing mix (product, price, promotion, and distribution), and creating action plans to implement and monitor marketing activities.

Additional Information Production of goods:

• The production of goods is not a function of marketing management.
• It falls under the domain of operations management or production management, which focuses on manufacturing and delivering products.

The contract has four essential elements and is formed in the following sequence:

• An offer is made by one party to another to enter into a contract.
• The next step is acceptance of that offer by the other party involved.
• The special word “consideration” in contract law refers to something that has value in the eyes of the law. Consideration is an essential element to make a contract. must be provided for a contract to be legally binding.
• Every promise and every set of promises, forming the consideration for each other, is an agreement

Therefore, the correct sequence in the formation of a contract is offer, acceptance, consideration, agreement.

When ratios are calculated from financial statements of one year, it is termed as Ratio Analysis.

Ratio Analysis refers to the process of establishing financial ratios from a financial statement of one year to find out the financial performance of a company. Ratio Analysis are classified into three types:

1. Profitability ratios

2. Efficiency / Operating ratios

3. Liquidity ratios

The correct answer is India-UAE (CEPA)

Key Points Free Trade Agreement:

• Free Trade Agreement is an agreement between two or more countries that reduces or eliminates tariffs and other trade barriers on goods and services traded between the countries.
• FTAs can also include provisions on investment, intellectual property, and dispute settlement.
• FTAs are designed to boost trade and economic growth by making it easier for businesses to sell their goods and services in other countries.
• They can also help to create jobs and improve standards of living.

Important Points India-UAE (CEPA):

• The India-UAE Comprehensive Economic Partnership Agreement (CEPA) is a trade agreement between India and the United Arab Emirates (UAE).
• It was signed on February 18, 2022, and entered into force on May 1, 2022.
• The CEPA aims to boost trade and investment between India and the UAE.
• It includes provisions on trade in goods, services, investment, intellectual property, and dispute settlement.
• Under the CEPA, India and the UAE have agreed to reduce or eliminate tariffs on a wide range of goods.
• The UAE has also agreed to grant India preferential market access for a number of services sectors, including IT, financial services, and healthcare.
• The CEPA is expected to boost trade between India and the UAE by up to $100 billion over the next five years.
• It is also expected to create jobs and boost economic growth in both countries.

Additional Information

List of India's FTA's

The basic procedure of Income Tax return e-Filling in India is

1. Register: Visit the 'e-Filing' Portal www.incometaxindiaefiling.gov.in. and register yourself by providing basic details.
2. Once the registration process is complete login into your account by providing the credentials.
3. The next step is to download the utility and preparing returns
4. Next step enter your bank account details and proceed towards e-filing.
5. Once your return is filed e-Verify your income tax return.

Additional Information

E-filing is now mandatory for individuals and Hindu Undivided Families whose accounts have to be audited under Section 44AB of the Income Tax Act. For companies, e-filing with a digital signature is mandatory.

A) Fair Value = Rs. 1,80,000

B) Municipal Value = Rs. 1,50,000

C) Higher of A and B = Rs. 1,80,000

D) Standard Rent = Rs. 1,60,000

E) Expected Rent (Lower Of C and D) = Rs. 1,60,000

F) Actual Rent = Rs. 2,40,000 (20000 12 Months)

GROSS ANNUAL VALUE (Higher Of E and F) = Rs. 2,40,000

NET ANNUAL VALUE = Gross Annual Value (2,40,000) - Unrealised Rent (40,000) - Municipal Tax (30,000) = Rs. 1,70,000

As per Section 10 (1), agricultural income earned by the taxpayer in India is exempted from tax. Agricultural income is defined under Section 2 (1A) of the Income Tax Act.

The correct answer is Reduced stockouts and overstock situations.

Key Points

•  One of the common benefits of implementing a Vendor-Managed Inventory (VMI) system is "Reduced stockouts and overstock situations." VMI allows suppliers to monitor inventory levels at the buyer's site and manage the replenishment process.
• By ensuring that the right amount of products is delivered at the right time, VMI helps in minimizing stockouts (when products are out of stock when needed) and overstock situations (when there is excess inventory).
• This optimizes inventory levels, reduces carrying costs, and enhances overall supply chain efficiency.

The basic assumption of cardinal utility analysis is :

•  Rationality of consumer
•  Utility cardinally measurable
• The hypothesis of independent utilities

The correct answer is A, B, D and E only.

Key PointsThe correct features of principles of management are:

A. Flexibility: The principles of management are flexible and can be adapted to different situations and contexts. They provide general guidelines that can be applied in various organizational settings, allowing for flexibility in their application.

B. Universal application: The principles of management are applicable across different industries, sectors, and organizations. They provide fundamental concepts and principles that can be universally applied to manage and lead organizations effectively.

D. Based on situation: The principles of management are not absolute and fixed. They consider the specific circumstances and context in which they are applied. Managers need to adapt and apply the principles based on the unique situations they face.

E. Derived out of experience: The principles of management are derived from the experiences, observations, and studies of successful managers and organizations over time. They are based on practical knowledge gained from managing and leading organizations.

Therefore, the correct features of the principles of management are A. Flexibility, B. Universal application, D. Based on situation, and E. Derived out of experience.

Trade-Related Aspects of Intellectual Property Rights (TRIPs) - Doha Ministerial Conference.

Intellectual property rights are the rights given to persons over the creations of their minds. They usually give the creator an exclusive right over the use of his/her creation for a certain period of time.  

The Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement requires members of the WTO to set minimum standards of legal protection, but its objective to have a “one-fits-all” protection law on Intellectual Property has been viewed with controversies regarding differences in the development level of countries.

Despite the controversy, the agreement has extensively incorporated intellectual property rights into the global trading system for the first time in 1995, and has prevailed as the most comprehensive agreement reached by the world.