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


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30 Questions MCQ Test - TS SET Paper 2 Mock Test - 2 (Commerce)

TS SET Paper 2 Mock Test - 2 (Commerce) for TS TET 2024 is part of TS TET preparation. The TS SET Paper 2 Mock Test - 2 (Commerce) questions and answers have been prepared according to the TS TET exam syllabus.The TS SET Paper 2 Mock Test - 2 (Commerce) MCQs are made for TS TET 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for TS SET Paper 2 Mock Test - 2 (Commerce) below.
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TS SET Paper 2 Mock Test - 2 (Commerce) - Question 1

GST does not include all the excise duty carrying goods. Find the non - GST commodities out of the following particulars.

i. High-speed diesel

ii. Aviation Turbine Fuel (ATF)

iii. Petroleum crude

iv. Motor spirit or petrol

Choose the right answer given below:

Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 1

The correct answer is All the above.

Key Points

  • Certain products and services like petroleum products, high-speed diesel, motor spirit, natural gas, aviation turbine fuel, and alcoholic liquor for human consumption do not come under GST.
  • These products and services are taxed by the individual State Governments, as per their tax policies.

Additional Information

  • GST is an indirect tax in India that is levied on the sale of goods and services in the country.
    • It is collected at the point of consumption and not at the point of origin.
    • It follows a multi-stage collection mechanism.
    • In this, tax is collected at every stage and the credit of tax paid at the previous stage is available as a set off at the next stage of the transaction.
  • There are various types of GST:
    • CGST: Central GST
    • SGST: State GST
    • IGST: Integrated GST
  • Goods & Services Tax Council is a constitutional body for making recommendations to the Union and State Government on issues related to Goods and Service Tax.
  • The GST Council is chaired by the Union Finance Minister.
  • The GST Council meets from time to time to revise the GST rates for various products.
  • India currently has four primary GST rates of 5%, 12%, 18%, and 28%.
  • The GST rate is 12% for computers and 28% for aerated drinks.
  • Though edible items like sugar, tea, and coffee are included in the 5% slab, milk does not attract any tax under the new GST regime.
  • As per Article 279A (1) of the amended Constitution, the GST Council has to be constituted by the President within 60 days of the commencement of Article 279A. 
  • This Act is also called the Constitution (One Hundred and First Amendment) Act, 2016.
TS SET Paper 2 Mock Test - 2 (Commerce) - Question 2

Which of the following is a permanent inter-governmental body governing and regulating international trade in goods and services?

Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 2

WTO (World Trade Organisation) is a permanent inter-governmental body governing and regulating international trade in goods and services. The WTO has the following objectives: 

  • To set and enforce rules for international trade 
  • To provide a forum for negotiating and monitoring further trade liberalisation
  • To resolve trade disputes
  • To increase the transparency of decision-making processes 
  • To cooperate with other major international economic trade-related issues

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TS SET Paper 2 Mock Test - 2 (Commerce) - Question 3

Match the following according to the codes given below:

Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 3

The correct match is given below-

  • Differential pricing - Low prices for early and evening movies, weekends discounts for car parking rentals.
  • Complimentary service - Customer lounges to sit in while waiting for a table at service centers, etc.
  • Reservation system - Airlines, hotel, physician employ extensively.
  • Non-peak demand cultivation - Breakfast service by McDonald's and mini-vacation and weekends by hotels.
TS SET Paper 2 Mock Test - 2 (Commerce) - Question 4
What is the insurance expense paid for the equipment being brought from the place of purchase to the place of replacement?
Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 4

An insurance premium paid to bring the equipment from the place of purchase to the place of installation is a capital expenditure.

Important Points

  • Capital expenditures refer to funds that are used by a company for the purchase, improvement, or maintenance of long-term assets to improve the efficiency or capacity of the company.
  • Long-term assets are usually physical, fixed, and non-consumable assets such as property, equipment, or infrastructure, and that have a useful life of more than one accounting period.
  • Also known as CapEx or capital expenses, capital expenditures include the purchase of items such as new equipment, machinery, land, plant, buildings or warehouses, furniture and fixtures, business vehicles, software, or intangible assets such as a patent or license.
  • Capital expenditures (CAPEX) are a company's major, long-term expenses that are not incurred on a day-to-day basis. 
  • An insurance premium paid to bring the equipment from the place of purchase to the place of installation is a capital expenditure as it is not a recurring expense and has to be paid probably only once unlike a life insurance premium which has to be paid after every regular interval till policy exists.

Thus, option 2 is the correct answer.

Additional Information

  • All the expenditures which are incurred in the day-to-day conduct and administration of a business and the effect of which is completely exhausted within the current accounting year are known as "revenue expenditures".
  • Revenue expenditures are short-term expenses used in the current period or typically within one year.
  • Revenue expenditures include the expenses required to meet the ongoing operational costs of running a business, and thus are essentially the same as operating expenses (OPEX).
  • Deferred Revenue Expenditure is an expenditure that is revenue in nature and incurred during an accounting period, however, related benefits are to be derived in multiple future accounting periods.
TS SET Paper 2 Mock Test - 2 (Commerce) - Question 5

Assertion (A): Offering an experiential service has become important in service marketing.

Reasoning (R): The shift from transactional services affirms the need for superior after-sales services and customer-centricity.

Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 5

The correct answer is Both A and R are true, and R is the right explanation of A.

Key Points

As per the passage: 

  • "In addition, the emphasis has shifted from providing a mere transactional service to offering an experiential one. Thus, customer-centricity and exceptional after-sales services have become paramount..."
    • These sentences provide the basis for the assertion (A) about the importance of offering an experiential service and the reasoning (R) that explains it.
TS SET Paper 2 Mock Test - 2 (Commerce) - Question 6

Read the following statements :

(i) “Working Capital is the amount of funds necessary to cover the cost of operating the enterprise.”

(ii) “Circulating capital means current assets of a company that are changed in the ordinary course of business from one form to another.” 

Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 6

Statement I:

  • Working capital is the difference between the current assets .e. accounts receivable, cash, inventories of raw material and fixed goods, and its current liabilities i.e. accounts payable, short-term debt, dividend, etc.
  • It is that part of the capital which helps in financing the operating activities in order to achieve short-term goals.
  • In other words, " Working Capital is the amount of funds necessary to cover the cost of operating the enterprise." 

Statement II:

  • Circulating capital is also known as revolving capital as the money keeps on changing its form in a continuous manner.
  • The money involved in circulating capital is used for core business operations and keeps on circulating from cash to current assets and back again to cash.
  • It includes current assets like cash, operating expenses, finished goods inventory, raw materials, inventory in the process, and accounts receivable and one can be used to buy another. 
  • In other words, "Circulating capital means current assets of a company that are changed in the ordinary course of business from one form to another."

Therefore, it is clear from the above explanation that both statements are correct.

TS SET Paper 2 Mock Test - 2 (Commerce) - Question 7

Generally, the shape of the marginal physical product curve is _______________.

Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 7

Marginal Product Curve shows the relation between marginal product and the quantity of the variable input. This curve shows the incremental change in output at each level of a variable input. Its shape is in the form of a hump or an inverse U because of increasing marginal returns in the beginning followed by decreasing and then diminishing marginal returns.

TS SET Paper 2 Mock Test - 2 (Commerce) - Question 8

Which of the following does not adversely impact the sustainability of Italy’s debt?

I. The rate offered on the bonds has increased when compared to the past.

II. The current rate offered on bonds is around the average rate of the existing debt.

III. Most of the debt is short to mature in terms of maturity.

Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 8
Refer to: ‘Nor has the run-up in yields yet threatened the sustainability of Italy’s debt. On May 30th Italy sold a total of €5.6bn-worth of five-, seven- and ten-year bonds at yields of 2.32%, 2% and 3% respectively. Granted, that is dearer than in the recent past, but it is well below the average coupon of 3.4% on its existing stock of debt. And the longish average maturity of its bonds, around seven years, gives it breathing space.’
  • I is incorrect as an increase in rate would decrease the sustainability of Italy’s debt.
  • III is incorrect as the debt should be long term in nature so as to be sustainable. A short term maturity would put more burden in terms of repayment.
  • II is correct.
TS SET Paper 2 Mock Test - 2 (Commerce) - Question 9

Which of the following could be a possible reason for the line- ‘Foreigners are also unlikely to have suffered much direct harm from the fall in bond prices’?

I. Italy’s huge public-debt market gives it a decent weight in global bond indices.

II. Foreign investors have cut their Italian holdings from €473bn to €250bn during the last year.

III. Exposure of banks outside Italy has fallen by almost half since 2009, to €133bn.

Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 9
Statement I is incorrect as if the Italian debt market has a huge share in the global bond indices, it would have an adverse impact on foreigners.Statement II and Statement III are both correct as if the banks and other foreign investors have cut down on Italian holdings, they would not suffer much from the current situation.
TS SET Paper 2 Mock Test - 2 (Commerce) - Question 10

Which of the statements below strengthen the argument -‘So far, this adds up to a nasty bout of the jitters rather than full-blown panic’?

I. The bond yields in Italy are still far below the levels reached during the 2011 Euro-zone crisis.

II. The effect of the issue has not impacted other members very hard.

III. The ratings given to many Italian Bank stocks by credit agencies has not changed at all.

Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 10
As per the passage, bond yields rise when investors lose confidence in the ability of bonds to repay the debt. Here, the levels have not hit the heights that were achieved during the 2011 crisis and thus, statement I is correct.

Statement II is correct clearly.

Statement III is correct as a fall in the ratings would have indicated deterioration of conditions in the economy.
TS SET Paper 2 Mock Test - 2 (Commerce) - Question 11

Which of the following statements shows that investors were losing confidence in Italy?

I. Its debt hit a level of $2.7 trn, many times above its GDP.

II. Yield on Italian bonds rose in general.

III. Yields on German Bonds fell.

Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 11
Statement I is merely a fact and merely states the debt conditions in the country.

Statement II is correct. When investors lose confidence in the markets, the bond yields increase.

Statement III is correct as investors have been shifting from Italian to German bonds which provide more safety. This led to a decrease in the yields of the bonds.

So, both II and III are correct.
TS SET Paper 2 Mock Test - 2 (Commerce) - Question 12

Right to information includes the right to:

1. inspect works, documents, records.

2. take notes, extracts or certified copies of documents or records.

3. take certified samples of material

4. obtain information in forms of printouts, diskettes, floppies, tapes, video cassettes or in any other electronic mode or through printouts.

Choose the correct codes:

Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 12

The Right to Information Act passed in 2005 extends to all states and union territories of India excepting the state of Jammu and Kashmir. This act gives Indian citizens the right to access information about any public authority or institution, including non-government organizations substantially funded by the government.

The main aims of the RTI Act are to provide clarity of the information to the citizens of India, to contain corruption, and to promote accountability in the working of every public authority.

TS SET Paper 2 Mock Test - 2 (Commerce) - Question 13

Which of the following are the types of E-filling of return?

1. E-filling through e-return intermediary.

2. E-file without digital signature.

3. E-file with digital signature.

Select the correct answer using the codes given below:

Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 13

The process of filing Income tax returns electronically through the internet is known as e-filing.

There are three types of e-filing of return:

e-filing with Digital Signature Certificate (DSC).

There is no further action needed if filed with DSC.

The DSC used in e-filing the Income-tax return should be registered on the e-filing application.

e-filing without Digital Signature Certificate.  

In this case, an ITR-V Form is generated.

The Form should be printed, signed, and submitted to CPC, Bangalore using Ordinary or Speed post only within 120 days from the date of e-filing.

There is no further action needed if ITR-V Form is submitted.

e-filing the Income-tax return through an e-Return Intermediary (ERI) with or without Digital Signature Certificate (DSC).

Therefore, all of the above are types of e-filing of return.

TS SET Paper 2 Mock Test - 2 (Commerce) - Question 14
What is the importance of 'trade secrets"?
Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 14

The correct answer is Competitive advantage.

Key Points

Trade secrets:

  • Trade secrets refer to valuable, confidential, and non-public information that is kept secret within an organization.
  • They can include formulas, processes, methods, customer lists, marketing strategies, and other proprietary information.
  • Trade secrets are important for maintaining a competitive advantage in the market.

Important Points

Competitive Advantage:

  • Trade secrets provide a unique competitive advantage to companies.
  • By keeping certain information secret, companies can differentiate themselves from competitors and have an edge in the market.
  • Trade secrets allow companies to maintain their unique processes, techniques, or information that gives them an advantage over others.

Confidentiality and Exclusivity:

  • Trade secrets allow companies to protect valuable information from being disclosed to competitors or the public.
  • This confidentiality and exclusivity give them an upper hand in the market, as competitors cannot replicate or imitate their secret methods or strategies.

Cost-effectiveness:

  • Unlike other forms of intellectual property protection, such as patents or trademarks, trade secrets do not require formal registration or filing fees.
  • They can be maintained and protected internally, making them a cost-effective way of safeguarding valuable information.

Longevity:

  • Trade secrets can provide long-term protection, as long as the information remains confidential.
  • Unlike patents or trademarks that have expiration dates, trade secrets can be kept indefinitely as long as they are not publicly disclosed.
  • This allows companies to have a sustained competitive advantage over an extended period.

Overall, trade secrets are valuable assets for companies as they provide a competitive edge, maintain confidentiality and exclusivity, are cost-effective, and offer long-term protection.

Protecting trade secrets can help companies maintain their market position, enhance innovation, and preserve their unique know-how and techniques.

TS SET Paper 2 Mock Test - 2 (Commerce) - Question 15

Which of the following are true in the context to company law?

A. In case of transfer of shares, stamp duty is essential.

B. For transmission of shares no consideration is necessary.

C. A person cannot be director of more than 30 companies at the same time.

D. 'IPO' stands for Initial Public Obligation.

E. Departmental undertaking is a type of government undertaking.

Choose the correct answer from the options given below: 

Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 15

The correct answer is A, B and E.

Key PointsLet us study the statements: 

A. In the context of company law, when shares are transferred from one person to another, stamp duty is generally required to be paid on the transfer deed or instrument.

B. This statement is correct. For the transmission of shares, which refers to the transfer of shares upon the death, bankruptcy, or insolvency of a shareholder, no consideration is necessary. However, the legal process for transmission must still be followed.

C. According to the Companies Act, a person cannot be a director of more 20 than companies at the same time. This provision aims to prevent the concentration of directorships and ensure effective governance and oversight. This statement is incorrect.

D. This statement is incorrect. 'IPO' stands for Initial Public Offering, which refers to the first sale of a company's shares to the public, allowing it to become a publicly traded company.

E. This statement is correct. In the context of government undertakings, a departmental undertaking refers to an organization or unit that operates directly under a government department. It is fully owned and controlled by the government.

TS SET Paper 2 Mock Test - 2 (Commerce) - Question 16

Select the correct code of the following statements being correct or incorrect.

Statement (I) : The ‘law of one price’ states that in competitive markets free of transportation costs and barriers to trade, identical products sold in different countries must sell for the same price when their price is expressed in terms of the same currency.

Statement (II) : An ‘Efficient market’ has no impediments to the free flow of goods and services, such as trade barriers.

Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 16

The ‘law of one price’ states that in competitive markets free of transportation costs and barriers to trade, identical products sold in different countries must sell for the same price when their price is expressed in terms of the same currency.

An ‘Efficient market’ has no impediments to the free flow of goods and services, such as trade barriers.

Both statements are correct.

  • The law of one price is an economic concept that states that the price of an identical asset or commodity will have the same price globally, regardless of location, when certain factors are considered.
  • The law of one price takes into account a frictionless market, where there are no transaction costs, transportation costs, or legal restrictions, the currency exchange rates are the same, and that there is no price manipulation by buyers or sellers. 
  • An efficient market has no impediments to the free flow of goods and services, such as trade barriers, and prices reflect all available public information. By comparing the prices of identical products in different currencies, it would be possible to determine the "real" or PPP exchange rate that would exist if markets were efficient.

TS SET Paper 2 Mock Test - 2 (Commerce) - Question 17

Which is not a characteristic of a non-government company?

Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 17

Key PointsA Non-Government Company Is Also Known As Private Company.

The companies whose shares cannot be traded publicly are termed Private companies. Shares of these companies are not available for trade openly in the market. Private companies are held & controlled by a few private individuals privately.

Following are the features of a Private Company:



Therefore, member's liability is limitless is not a characteristic of a non-government company.

TS SET Paper 2 Mock Test - 2 (Commerce) - Question 18

X Ltd. purchased land and building worth Rs. 2880000 and in lieu issued debentures of Rs. 100 each at a discount of  4%. The number of debentures issued is-

Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 18

 

Debentures Value = Rs. 100.

4% of 100 = Rs. 4 Discount. Debentures are issued at Price of Rs. 96

Number of Debentures issued

Hence, the correct option is (B)

 

TS SET Paper 2 Mock Test - 2 (Commerce) - Question 19
Which section among the following describes 'special resolution" as per Companies Act, 2013?
Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 19
Key Points

Section 114 (2) of Companies Act, 2013:

A resolution shall be a special resolution when—

  • the intention to propose the resolution as a special resolution has been duly specified in the notice calling the general meeting or other intimation given to the members of the resolution.
  • the notice required under this Act has been duly given; and
  • the votes cast in favour of the resolution, whether on a show of hands, or electronically or on a poll, as the case may be, by members who, being entitled so to do, vote in person or by proxy or by postal ballot, are required to be not less than three times the number of the votes, if any, cast against the resolution by members so entitled and voting.

Important Points

As per Companies Act 2013, a special resolution needs to be passed in the following instances:

  • Alteration of the memorandum of association or articles of association of a company.
  • Change of the company's name.
  • Conversion of a public company into a private company or vice versa.
  • Issuance of shares with differential voting rights.
  • Reduction of share capital of a company.
  • Merger or amalgamation of a company with another company.
  • Voluntary winding up of a company.
  • Appointment of a director who is not a retiring director.
  • Removal of a director before the expiry of their term.
  • Appointment of an auditor other than the retiring auditor.
  • Approval of a scheme of arrangement or reconstruction.
  • Issuance of debentures with an option to convert them into shares.
  • Approval of related party transactions.

Hence, Section 114 (2) describes 'special resolution" as per Companies Act, 2013.

TS SET Paper 2 Mock Test - 2 (Commerce) - Question 20
________is the process of selecting strategic price points to best take advantage of a product or service based market relative to competition.
Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 20

The correct answer is Competitive Pricing

Key Points Competitive Pricing

  • Competitive pricing or competition-based pricing is a pricing strategy where you take into account the prices of your competitors when setting your products’ prices.
  • This pricing method is usually used for homogenous products in highly competitive markets and can be also referred to as market-oriented pricing.

Additional Information 1. Value-based Pricing

  • Value-based pricing is a strategy of setting prices primarily based on a consumer's perceived value of the product or service in question.
  • Value pricing is customer-focused pricing, meaning companies base their pricing on how much the customer believes a product is worth.
  • Companies that offer unique or highly valuable products and features are better positioned to take advantage of the value pricing model than companies that chiefly sell commoditized items.

2. Product Pricing

  • Product pricing is an essential element in determining the success of your product or service, yet eCommerce entrepreneurs and businesses often only consider pricing as an afterthought. They settle and use the first price that comes to mind, copy competitors, or (even worse) guess.
  • Before setting a price for your product, you have to know the costs of running your business. If the price for your product or service doesn't cover costs, your cash flow will be cumulatively negative, you'll exhaust your financial resources, and your business will ultimately fail.

3. Premium Pricing

  • Premium pricing is a strategy that involves tactically pricing your company’s product higher than your immediate competition.
  • The purpose of pricing your product at a premium is to cultivate a sense in the market of your product being just that bit higher in quality than the rest.
TS SET Paper 2 Mock Test - 2 (Commerce) - Question 21

With reference to SAARC, consider the following statements and select the correct statements from the given codes:

(I) The South Asian Association for Regional Cooperation (SAARC) is the regional intergovernmental organization and geopolitical union of nations in South Asia.

(II) The organization promotes the development of economic and regional integration.

(III) It launched the South Asian Free Trade Area in 2006.

(IV) Its secretariat is based in New Delhi.

Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 21

The South Asian Association for Regional Cooperation (SAARC) is the regional intergovernmental organization and geopolitical union of nations in South Asia. Its member states include Afghanistan, Bangladesh, Bhutan, India, Nepal, the Maldives, Pakistan, and Sri Lanka. SAARC comprises 3% of the world's area, 21% of the world's population, and 3.8% of the global economy, as of 2015. SAARC was founded in Dhaka on 8th December 1985. Its secretariat is based in Kathmandu, Nepal. The organization promotes the development of economic and regional integration. It launched the South Asian Free Trade Area in 2006. SAARC maintains permanent diplomatic relations at the United Nations as an observer and has developed links with multilateral entities, including the European Union.

TS SET Paper 2 Mock Test - 2 (Commerce) - Question 22
The meaning of cash as per AS-3 (revised) is:
Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 22

As per AS-3 (revised), 'cash' means 'cash in hand' and demand deposits with the bank. The cash flow statement based on AS-3 (revised) represents separately cash generated and used in operating, investing, and financing activities.

TS SET Paper 2 Mock Test - 2 (Commerce) - Question 23
Which Act was replaced with the introduction of Competition Act, 2002?
Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 23

The correct answer is MRTP.

Important Points

  • The Competition Act, 2002 was enacted by the Parliament of India and governs Indian competition law.
  • It replaced the archaic The Monopolies and Restrictive Trade Practices Act, 1969.
  • Under this legislation, the Competition Commission of India was established to prevent the activities that have an adverse effect on competition in India.
  • This act extends to whole of India.
TS SET Paper 2 Mock Test - 2 (Commerce) - Question 24

Which of the following is true with regard to the method of least squares used in simple regression analysis?

Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 24

Key Points

Simple Regression Analysis:

A simple regression analysis is essentially a statistical technique used to quantify the relationship between a single independent variable and a single dependent variable based on historical observations.

Important Points

Least Squares method used in Simple Regression Analysis:

Finding a regression line or best-fitted line for any collection of data that is specified by an equation is done using the least square method. With this technique, the trend of the results is discovered quantitatively by reducing the sum of the squares of the residual sections of the points from the curve or line. When performing regression analysis, the least square method is used to fit equations to the data in order to derive the curve.

  • The primary goal of this methodology is to minimize the sum of squared errors. This explains why this approach is known as the least-squares approach.
  • A statistical technique called the least-squares method is used to determine which equation, such as y = mx + b, best fits the data. According to the regression equation, it minimizes the sum of the squared differences between the dependent variable's estimated values and actual values.
  • This approach is frequently used in data fitting, where the goal is to minimize the sum of squared errors, which is thought to represent the discrepancy between the observed values and the corresponding fitted values.
  • The behaviour of the dependent variable with respect to the independent variable is predicted using the least-squares method.
  • Variance is the product of the square of the errors.
  • The least-squares method's primary goal is to reduce the total squared errors.

Hence, it is true that least squares method used in simple regression analysis minimises the sum of the squared differences between the actual values of dependent variable and the estimated values of the dependent variable as per regression equation

TS SET Paper 2 Mock Test - 2 (Commerce) - Question 25

Exchange concept of marketing deals with:

Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 25

The exchange concept of marketing deals with the Exchange of products between sellers and buyers covering distribution and price aspects. 

The central idea of marketing is the exchange of products between the seller and the buyer. Exchange covers the distribution aspect and the price mechanism of the product. 

Marketing theorists consider the exchange to be the central concept without which there would be no such thing as marketing.

TS SET Paper 2 Mock Test - 2 (Commerce) - Question 26

What is the primary reason that Intellectual Capital is considered critical for the success of an organization?

A. It increases the financial capital of the organization.

B. It provides a competitive advantage to the organization.

C. It reduces the operating cost of the organization.

D. It increases the market share of the organization.

Choose the correct answer from the options given below:

Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 26

The correct answer is B only

Key Points

  • Intellectual Capital (IC) refers to the value of an organization's employee knowledge, business training, and any proprietary information that may provide the company with a competitive advantage.

Important Points

A. It increases the financial capital of the organization:

  • Intellectual Capital (IC) consists of knowledge, information, intellectual property, experience that can be put to use to create wealth.
  • While it's not a direct financial asset, it can certainly lead to increased financial capital if effectively utilized. For example, a company with a highly skilled and innovative workforce (a form of IC) may develop unique products or services that drive sales and profits, thereby increasing the financial capital of the organization.

B. It provides a competitive advantage to the organization:

  • This is often seen as the primary function of IC.
  • A company's unique combination of knowledge, systems, and relationships can differentiate it from competitors.
  • This might manifest in unique, high-quality products or services, superior customer service, or more efficient internal processes.
  • All of these can give a company a significant edge in the marketplace, allowing it to outperform competitors.

C. It reduces the operating cost of the organization:

  • Intellectual capital, when utilized properly, can lead to increased efficiencies in the organization's operations.
  • For example, an organization that has effective knowledge management systems in place (a form of structural capital) can avoid wasting resources on "reinventing the wheel". Instead, employees can learn from past experiences and avoid making costly mistakes, leading to reductions in operating costs.

D. It increases the market share of the organization:

  • IC, particularly in the form of relational capital (relationships with customers, partners, etc.), can help a company increase its market share.
  • For example, strong brand recognition or a reputation for high-quality customer service can attract more customers to the company, helping it to gain a larger share of the market.
  • Similarly, a company that fosters strong relationships with its partners might gain preferential access to distribution channels, enabling it to reach more customers than competitors.

While Statements A, C, and D can be potential outcomes of effective management and utilization of IC, Statement B is often viewed as the primary function of IC.

TS SET Paper 2 Mock Test - 2 (Commerce) - Question 27
Oracle was started by?
Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 27

The correct answer is Larry Ellison.

Key Points

  • Oracle is an American multinational computer technology corporation headquartered in Austin, Texas. The company was formerly headquartered in Redwood Shores, California until December 2020 when it moved its headquarters to Texas.
  • It was started by Larry Ellison, Bob Miner and Ted Oates on 16 June, 1977.
  • Oracle offered first commercial SQL Relational Database Management System (RDBMS).


Additional Information

  • Larry Page along with Sergey Brin founded Google on 4th September 1998. It is the most popular search engine in the world.
  • Sean Parker is an American entrepreneur and philanthropist, most notable for co-founding the file-sharing computer service Napster, and serving as the first president of the social networking website Facebook.
  • Bill Gates and Paul Allen started Microsoft on 4th April, 1975. It has since been an important part of the tech world as it has offered the widely used Windows UI, MS- Office and its CRM app known as Dynamics CRM.
TS SET Paper 2 Mock Test - 2 (Commerce) - Question 28
ITNS Challan Number ________ is used for payment of Fringe Benefit Tax.
Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 28

The correct answer is 283.

Important Points

  • ITNS Challan Number 283 is used for payment of Fringe Benefits Tax.
  • Fringe benefit tax (FBT) was a form of tax that companies paid in lieu of benefits they offered their employees in addition to the compensation paid to them. It was included by the Finance Act 2005 with effect from April 1, 2006.
  • The Income Tax Department's Challan ITNS 284 is used to pay Income Tax on Corporations (Corporation Tax) and Income Tax on Other than Corporations.
  • The Income Tax Department's Challan ITNS 283 is used to pay the Banking Cash Transaction Tax and Fringe Benefits Tax.
  • To deposit gift tax, estate duty, spending tax, and other miscellaneous taxes use the ITNS 282 form
TS SET Paper 2 Mock Test - 2 (Commerce) - Question 29

Which kind of consumer behavior is spotted when there is significant differences between brands and also there is high involvement?

Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 29

Complex Buying Behavior is spotted when there are significant differences between brands and also there is high involvement.

  • Complex buying behavior occurs when the consumer is highly involved with the purchase and when there are significant differences between brands.
  • This behavior can be associated with the purchase of a new home or a personal computer.
  • Such tasks are complex because the risk is high (significant financial commitment), and the large differences between brands or products require gathering a substantial amount of information prior to purchase.
  • This may include informing the consumer about the product category and its important attributes, providing detailed information about product benefits, and motivating sales personnel to influence final brand choice.

1. Variety Seeking Buying Behavior:

  • Variety-seeking buyer behavior is the buying tendency of those consumers that do not have a high involvement with a product when there is a significant difference between brands.
  • These types of consumers seek variety for no valid reasons at all and become bored quite easily with products.


2. Dissonance Reducing Buying Behavior:

  • Dissonance-reducing buying behavior occurs when the consumer is highly involved but sees little difference between brands.
  • This is likely to be the case with the purchase of a lawnmower or a diamond ring.
  • After making a purchase under such circumstances, a consumer is likely to experience the dissonance that comes from noticing that other brands would have been just as good, if not slightly better, in some dimensions.
  • A consumer in such a buying situation will seek information or ideas that justify the original purchase.


3. Habitual Buying Behavior:

  • Habitual buying is that kind of buying behavior of customers where they don't think much before buying the product and involvement in the decision-making is very low.
  • The product is perceived as a commodity and doesn't provide much difference from its rivals.
TS SET Paper 2 Mock Test - 2 (Commerce) - Question 30
The people to adopt a new product first are called:
Detailed Solution for TS SET Paper 2 Mock Test - 2 (Commerce) - Question 30

The process of adoption over time is typically illustrated as a classical normal distribution or "bell curve". The people to adopt a new product first are called innovators.

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