APSET Paper 2 Mock Test - 6 (Commerce) - AP TET MCQ

The correct answer is World Bank.

Key Points

• James D Wolfensohn who passed away in November 2020 was the former president World Bank.
• James D Wolfensohn was the President of the World Bank from June 1, 1995, to May 31, 2005.
• Under the presidency of James D Wolfensohn World Bank Group sharpened its focus on poverty reduction and redoubled its efforts to combat corruption, give voice to the poor, and magnify the impact of development investments.

​​Important Points

• World Bank founded in 1944 at Bretton Woods Conference is headquartered in Washington.
• At present, the World Bank has 189 member countries.
• President of the World Bank is David Malpass.
• The World Bank Group  consists of five institutions
  • International Bank for Reconstruction and Development(IBRD)
  • International Development Agency(IDA)
  • Multilateral Investment Guarantee Agency(MIGA)
  • International Centre for Settlement of Investment Disputes(ICSID)
  • International Finance Corporation(IFC)

According to Robbins, "perception may be defined as a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment."

Key-Points

Customer Perception Analysis:

• Customers are dynamic in thought but tend to converge while displaying certain emotions and behaviors.
• These complex thoughts and behavioral patterns that the customers exhibit can be combined into a concept called customer perception.
• Customer perception is a marketing concept that tells us what customers feel about a brand or company or its offerings.
• It can be positive or negative perceptions, inhibitions, feelings, predispositions, expectations or experiences that a customer has.
• Customer perception can be typically affected by advertising, social media, public relations, personal experience, and other channels. 
• Customer perception analysis is a value-chain assessment methodology that gives a better understanding of one’s interaction with customers.

• The factors influencing Customer perception analysis are stated below:
  • ​Exposure (advertisement)
  • Interpretations (involves making sense out of stimulus)
  • Relevant several other factors (substitute)
  • Surprising stimuli
  • Subliminal stimuli
  • Selective perception process
  • Selective Exposure
  • Selective Attention
  • Selective Comprehension
  • Selective Retention

Therefore, Selective credit control is not the factor influencing Customers Perception Analysis.

According to its definition, a flowchart is a graphical representation of a sequence of activities and decisions.

ADB (Asian Development Bank) was established in 1966.

Asian Development Bank (ADB):

• It was established on 19 December 1966.
• Its headquarters is in Manila, Phillippines.
• It has currently 68 members.
• Masatsugu Asakawa is the current President.
• The ADB is a social development organization that is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.
• ADB provide loans, grants and information sharing in infrastructure, health care services, financial and public administration systems, helping nations prepare for the impact of climate change or better manage their natural resources for its member states.

The correct answer is A company with a paid-up capital of 4 Crores.

Key Points

Small Company

• A paid-up share capital equal to or below Rs.4 crore or a higher amount specified not exceeding Rs.10 crores.
• A turnover equal to or below Rs.40 crore or a higher amount specified not exceeding Rs.100 crore.

However, the following will never be treated as a small company regardless of Turnover and paid-up share capital:

• a holding company or a subsidiary company
• a company registered under section 8
• a company or body corporate governed by any special Act.

Hence, the correct answer is A company with a paid-up capital of 4 crores.

A) Fair Value = Rs. 36,000

B) Municipal Value = Rs. 36,000

C) Higher Of A and B = Rs. 36,000

D) Standard Rent = Rs. 40,000

E) Expected Rent (Lower Of C and D) = Rs. 36,000

F) Actual Rent = Rs. 32,000

The correct answer is 1/3 of total strength or 2 directors; whichever is higher

Key Points

Additional Information
For section 8 Companies, the quorum for the BM, is either 8 members or 25% of its total strength whichever is less, however, the quorum shall not be less than two members.

Planning begins with the determination of objectives. It highlights the purposes for which various activities are to be undertaken. In fact, it makes objectives more clear and specific. Planning helps in focusing the attention of employees on the objectives or goals of the enterprise. Planning compels the manager to prepare a blueprint of the courses of action to be followed for the accomplishment of objectives. Therefore, planning brings order and rationality into the organization. Planning minimizes uncertainties. There are risks of various types due to uncertainties. Planning helps in reducing uncertainties of the future as it involves anticipation of future events. Although the future cannot be predicted with cent percent accuracy planning helps management to anticipate the future and prepare for risks by necessary provisions to meet the unexpected turn of events.

Accounting Standards are written policy documents issued by an expert accounting body or by the government or other regulatory body covering the aspects of recognition, measurement, treatment, presentation, and disclosure of accounting standards in financial statements.

Accounting Standard (AS) 6: Depreciation Accounting:-

AS - 6 was made mandatory from the accounting period beginning on or after 1st April 1995.

The terms used in this Standard are explained below:

1. Depreciation:
   • It is a measure of the wearing out, consumption, or other loss of value of a depreciable asset arising from use, effluxion of time obsolescence through technology, and market changes.
   • It is allocated so as to charge a fair proportion of the depreciable amount of each accounting period during the expected useful life of the asset.
   • It includes amortization of assets whose useful life is predetermined.
2. Depreciable assets are assets which:
   • are expected to be used during more than one accounting period,
   • have a limited useful life, and
   • are held by an enterprise for use in the production or supply of goods and services, for rental to others, or for administrative purposes and not for the purpose of sale in the ordinary course of business.
3. Useful life is either
   • the period over which the depreciable asset is expected to be used by the enterprise; or
   • the number of production or similar units expected to be obtained from the use of the asset by the enterprise.
4. The depreciable amount of a depreciable asset is its historical cost or other amount substituted for historical cost in the financial statements, less the estimated residual value.

Accounting Standard (AS) 6, Depreciation Accounting, stands withdrawn from the date AS 10, Property, Plant, and Equipment, becomes applicable as such matters related to depreciation are included in AS 10.

The correct answer is TATA Group.

Key Points

•  The philosophy of "Good Thoughts, Good Words, Good Deeds" is the motto of the Indian business house Tata Group. It is a Zoroastrian maxim that emphasizes the importance of positive thinking, speech, and action. The Tata Group has adopted this motto as a guiding principle for its business practices and its commitment to social responsibility.
• The Tata Group is one of the largest conglomerates in India. It was founded in 1868 by Jamsetji Tata, a Zoroastrian. Tata believed that businesses should not only make profits, but also contribute to society. He adopted the motto of "Good Thoughts, Good Words, Good Deeds" to reflect this belief.
• The Tata Group has a long history of social responsibility. It has donated billions of rupees to charitable causes, and it has set up several educational institutions and hospitals. The group has also been a pioneer in corporate social responsibility initiatives, such as the Tata Business Excellence Model (TBEM) and the Tata Sustainability Index (TSI).
• The Tata Group's commitment to "Good Thoughts, Good Words, Good Deeds" has made it a role model for other businesses in India. It is an example of how businesses can be profitable and socially responsible at the same time.

Hence, the correct answer is TATA Group

The first step in the Customer Experience Management Process is to develop ​customer experiences that lead to lasting relationships and referrals.

• Customer experience is defined as your customers’ perceptions – both conscious and subconscious – of their relationship with your brand resulting from all their interactions with your brand during the customer life cycle.
• Customer experience management is the practice of designing and reacting to customer interactions to meet or exceed customer expectations and, thus, increase customer satisfaction, loyalty, and advocacy.
• Customer experience management is about more than serving your customers.
• It’s about more than knowing where customers shop and what brand of dog food they buy.
• It's about knowing your customers so completely that you can create and deliver personalized experiences that will entice them to not only remain loyal to you but also to evangelize to others about you – and that’s the most valuable form of advertising there is.
• The crux of having a customer experience management process involved in business activity is to give customers such experiences that lead to lasting relationships and referrals.

The correct answer is assertion is incorrect, but Reasoning is correct.

Key PointsAs per the passage, "The Euro's stability relies on the performance of all member economies, as witnessed during the Eurozone debt crisis of 2010."

The correct answer is It reduces transaction costs.

Key PointsAs per the passage, "For businesses, it provides pricing transparency and reduces transaction costs, aiding in the increase of cross-border trade within the Eurozone."

The correct answer is 2002.

Key Points As per the passage, "Introduced in 1999 as an electronic currency for banking and financial transactions and in tangible form in 2002, the Euro is the second most traded currency worldwide after the US Dollar."

Lineation function is a process in human resources management that is concerned with providing a conducive work environment to the employees and nurturing them to make them feel committed and attached to the organization.

Managers are the customers of cost and management accounting because the information is used by managers in making decisions.

The Correct option is 1 i.e. Subscribed and Fully paid

Important Points

The shares on which the company has called the entire nominal value and also the shareholders paid the entire called up amount. Under these circumstances it is shown under subscribed capital as Subscribed and Fully paid up. Subscribed capital is the part of the issued capital which is subscribed by the public.

Statement II is also correct for the fact that the reviews posted on the websites of the e-commerce companies are not always true and there is no way to find out if they are true or fake or even the discounts are not always for real. Refer to, “There are no authentic ways to figure out if product reviews, ratings or even discounts are genuine.”

The correct answer is Olaf Helmer and Norman Dalkey.

Key Points

•  The Delphi method was invented by Olaf Helmer and Norman Dalkey of the RAND Corporation in the 1950s. It is a forecasting method that uses a panel of experts to reach a consensus on a particular issue. The Delphi method is based on the idea that experts can provide better forecasts if they are isolated from each other and allowed to interact anonymously.
• The Delphi method works in a series of rounds. In the first round, the experts are asked to provide their individual forecasts on the issue at hand. In the second round, the experts are given the results of the first round and are asked to revise their forecasts based on the feedback from the other experts. This process continues until the experts reach a consensus on the issue.
• The Delphi method has been used to forecast a wide range of events, including technological developments, economic trends, and political events. It is a valuable tool for forecasting because it allows experts to provide their input without being influenced by the opinions of others.

Here are some of the benefits of using the Delphi method:

• It can be used to forecast a wide range of events.
• It is anonymous, which allows experts to provide their input without being influenced by the opinions of others.
• It is iterative, which allows experts to revise their forecasts based on the feedback from the other experts.
• It is a relatively inexpensive method to use.

Here are some of the drawbacks of using the Delphi method:

• It can be time-consuming.
• It can be difficult to get a quorum of experts.
• The experts may not be representative of the population as a whole.
• The experts may not be willing to participate in the Delphi process.

The correct answer is Prospectus.

Key Points Company - As per Section 2(20) of the Companies Act, 2013, the term “Company has been defined as a company incorporated under this Act or under any previous company law.”

Important PointsProspectus - Section 2(36) in The Companies Act, 1956 , prospectus means  any document described or issued as a prospectus and includes any notice, circular, advertisement or other document  inviting deposits from the public or inviting offers from the public for the subscription or purchase of any shares in, or debentures of, a body corporate.

The correct answer is Life Insurance Corporation of India.

Key Points

• The Fortune Global 500 is a ranking of the top 500 companies globally based on revenue released every year.
• The list is compiled and published annually by Fortune magazine.
• There are now 9 Indian public and private enterprises on the 2022 Fortune Global 500 list.
• With revenue of USD 97,266.7 million, the Life Insurance Corporation (LIC) of India is rated 98th on the list.
• LIC debuted on the list in May 2022 after being listed on Indian stock exchanges and has been included for the first time.
• US’s Walmart Inc. claims the first position, for the ninth consecutive year.
• Saudi Aramco of Saudi Arabia is ranked sixth with revenue of USD 105 billion.
• It has successfully reclaimed the title of most profitable company globally.
• Reliance Industries Ltd. was ranked 104th, with revenue of USD 93,982 million in 2021–2022.
• Reliance's position this year has increased by 51 positions.​

Additional Information

• The following Indian businesses are on the list:
  • Indian Oil Corporation Ltd. (IOCL) - 142nd rank
  • Oil and Natural Gas Corporation (ONGC) -190th rank
  • State Bank of India (SBI) - 236th rank
  • Bharat Petroleum Corporation Ltd (BPCL) - 295th rank

The correct answer is Time Keeping.

Key Points The activities that are not associated with workforce planning are:

Timekeeping: Timekeeping is the process of recording the hours that employees work. It is not directly related to workforce planning, which is the process of ensuring that an organization has the right number of employees with the right skills in the right places at the right time.

Assessing capability of workforce to develop any requisite skills: This is part of workforce planning, not separate from it.

The activities that are associated with workforce planning are:

Forward planning: This involves forecasting future demand for labor and supply of labor.
Reviewing internal and external labor supply: This involves identifying the skills and competencies of the current workforce and the skills and competencies that will be needed in the future.
Identifying areas where recruitment will be needed: This involves identifying the departments or functions where there will be a shortage of workers in the future.
Developing strategies to address any gaps in the workforce: This may involve recruitment, training, or redeployment.
Workforce planning is an important process for ensuring that an organization has the right number of employees with the right skills in the right places at the right time. It is a continuous process that should be reviewed regularly to ensure that it is still aligned with the organization's goals and objectives

The correct answer is "Product or services".

Key Points

Additional Information

• Distribution channel - A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the final buyer or the end consumer. Distribution channels can include wholesalers, retailers, distributors, and even the internet.
• Market trend - It is the direction of movement of the financial market over time. An example of a market trend is a bull market which is an upward movement of the market while a bear market is a downward movement of the market.
• Production - The production Concept is a belief that states that the customers would always acquire products that are cheaper and more readily available (or widely available). The production concept advocates that the more products or production the more would be sales. In countries where labor is cheap and easily available, production can be maximized while minimizing costs, hence increasing production efficiency.

Inferior good:

• An inferior good is a good whose demand decreases when consumer income rises and demand increases when consumer income decreases.
• Unlike normal goods, for which the demand rises as consumer income rises.
• Inferiority relates to affordability rather than a statement about the quality of the good.
• As a rule, these goods are affordable and also adequately fulfill their purpose but as more costly substitutes that offer more pleasure becomes available, the use of inferior goods diminishes.
• Thus, inferior goods are narrowly defined for which suitable substitutes are available.
• For example, cheaper cars; consumers will prefer cheaper cars when their income is constricted and as the consumer's income increases, the demand for inferior cars will decrease.
• A special type of inferior good may exist known as the Giffen good which disobeys the 'law of demand'.
• When the price of Giffen good increases, the demand for that good increases too.
• The observed demand curve would slope upward indicating positive elasticity.
• Giffen goods were first noted by Sir Robert Giffen.
• It is usual to attribute Giffen's observation to the fact that in Ireland during the 19th century there was a rise in the price of potatoes.
• However, it has been noticed that Giffen did not use potatoes as an example of Giffen goods and it was presented in terms of bread.
• This phenomenon is often described as "Giffen's Paradox".
• However, Giffen's paradox rarely occurs in the real world.

Therefore, both (A) and (R) are correct.

Research is a process of systematic investigation that entails the collection of data; documentation of important information; and the analysis and interpretation of that data/information, in accordance with appropriate practices prescribed by specific business areas and academic disciplines.

The following stages of research are in proper order:

Budgeting is essential in the development of any large business project. Without a well-organized budget, projects can fall through and remain incomplete. Having a budget allows you to establish the main objectives of a project.

Fieldwork refers to the collection of primary data from consumers or business-to-business customers through surveys or observations. It is also desirable for a researcher to have sufficient knowledge of research and data collection procedures to be able to interact intelligently with a subcontractor.

Data collection is the process of gathering and measuring information on variables of interest, in an established systematic fashion that enables one to answer perceived research questions, hypothesize and evaluate results.

Research results attempt to understand the end results of particular health care practices and interventions. End results include effects that people experience and care about, such as changes in ability to function.

Thesis writing is a reliable source for narrating details about an conducted research and is often considered a true proof of all that has been done to meet the specifications of the research.