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This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 6901. |
Write any two ways of increasing savings. |
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Answer» By reducing expenditure, judicious use of possessions, by investments, |
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| 6902. |
Identify any two effects of cool colour on the personality of a person. |
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Answer» Coolness, restfulness, excess cool colours may lead to depression, |
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| 6903. |
“Different clothes are required by different age groups.” What four points will you consider while selecting clothes for your 5 year old sister and 13 year old brother? |
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Answer» Four points to be considered for selecting clothes for my 5 year old sister and 13 year old brother are
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| 6904. |
Define the term ‘Investment’. Name any two long term scheme which will help a person to invest his/her savings for further use. Write two advantages and two disadvantages of each. |
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Answer» The term ‘Investment’ means that part of income which may be used to purchase a financial product or other item of value to generate some additional income. Two long term schemes, with their advantages and disadvantages, which will help a person to invest his/ her savings for further use, are given in the table below.
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| 6905. |
Aisha is in the final year of schooling and is highly motivated to excel in the competitive examinations. However she feels she is short of time and always burdened with work. She finds it difficult to slow down and relax. Identify her personality type. (a) Type A (b) Type C (c) Type B(d) Type D |
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Answer» Aisha is in the final year of schooling and is Type A . |
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| 6906. |
George’s sympathetic nervous system is engaged in the flight or fight syndrome due to a major stressor in his life. Which stage of general adaptation syndrome is he experiencing? |
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Answer» Alarm Reaction Stage, |
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| 6907. |
How is the bangle industry of Firozabad a curse for the bangle makers? |
Answer»
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| 6908. |
State the protective functions of Securities and Exchange Board of India. |
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Answer» Following are the protective functions of Securities and Exchange Board of India SEBI: 1. Check on unfair practices – SEBI prevents fraudulent and unfair trade practices in the interest of investors. Some of the usual unfair trade practices are making misleading advertisements, manipulations, price rigging etc. SEBI takes strong actions against the companies indulging in these unfair trade practices. 2. Control on insider trading – When a person having access to price sensitive information in respect of securities of a company uses the information to make his personal profit, it is called insider trading. SEBI keeps a strict check on insider trading and takes strict action. 3. Protection of investors – SEBI protects the rights and interests of investors particularly individual investors and to guide and educate them. SEBI has compelled the companies to give accurate information to the investors on regular basis. 4. Code of conduct – SEBI promotes fair trade practices by developing a code of conduct so that companies and financial intermediaries render better service to the investors. |
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| 6909. |
State the protective functions of Securities and Exchange Board of India. |
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Answer» Protective functions of SEBI : (i) It prohibits fraudulent and unfair trade practices like misleading statements, manipulations, price rigging etc. (ii) It controls insider trading and imposes penalties for such practices. (iii) It undertakes steps for investor protection. (iv) It promotes fair practices and code of conduct in securities market. |
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| 6910. |
Explain briefly any two points of importance of consumer protection from the point of view of business. |
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Answer» Importance of Consumer protection from the point of view of business : (i) Long-term interests of business. (ii) Business uses society’s resources. (iii) Social Responsibility. (iv) Moral Justification. (v) Government Intervention. Detailed Answer : Two points of importance of consumer protection from the point of view of business. (i) Long term interest of the business : In the competitive environment, the businessman can win and capture a big share in the market only through consumer satisfaction. Those who ignore the interest and satisfaction of consumers may loose their goodwill and clients. (ii) Social Responsibility : Just like other stakeholders, towards consumers also, businessmen has got social responsibility to provide quality goods at reasonable price. Consumer protection guides businessmen to fulfill social responsibility towards consumers. (iii) Government Intervention : If businessmen want to avoid intervention of Government then they should not involve in unfair trade practices and exploitative practices towards consumers. |
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| 6911. |
Ram Murthy, the CEO of ‘Goodcare Hospitals’, a leading chain of hospitals, decided to reward the good work of the doctors of his organisation. For this, he instituted two running trophies. A ‘Healthcare Achiever's Trophy’ to acknowledge and appreciate the tireless efforts of the doctors who rendered selfless services to the patients and another ‘Beti Bachao Trophy’ to recognise the outstanding work done by the doctors in saving the girl child.The CEO also wanted to improve the health services in rural areas all over the country. He decided that all doctors must work in rural areas for at least six months. He also decided that the paramedical staff should be employed locally.(a) Identify the incentive provided by ‘Goodcare Hospitals’ to its doctors through running trophies. (b) Which need of the doctors will be satisfied through the incentive identified in part (a) ? State.(c) State any two values that the CEO of ‘Goodcare Hospitals’ is trying to communicate to the society. |
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Answer» (i) Employee Recognition (ii) Esteem Needs (iii) Values that the CEO of ‘Goodcare Hospitals’ is trying to communicate to the society are : (a) Concern for health. (b) Concern for Hygiene. (c) Creation of employment opportunities. (d) Good behaviour in human interaction. (e) Fulfilling Social responsibility. (f) Development of rural areas/ Balanced regional development. (g) Saving the girl child/ Women Empowermen. |
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| 6912. |
Aradhana and Gandharv are heads of two different departments in ‘Yumco Ltd.’ They are efficient managers and are able to motivate the employees of their respective departments to improve performance. However, their drive to excel in their own sphere of activity instead of giving emphasis on objectives of the enterprise has hindered the interaction between the departments that Aradhana and Gandharv are heading. Often there are inter-departmental conflicts and they have become incompatible. This has proved to be harmful in the fulfilment of the organisational objectives. The situation has deteriorated to such an extent that the CEO of ‘Yumco Ltd.’ has hired a consultant, Rashmi, to resolve the problem. After studying the situation closely, Rashmi found that the problem has arisen due to inflexibility and a narrow perspective on the part of both Aradhana and Gandharv. She is of the view that this situation is a result of the type of organisational structure ‘Yumco Ltd.’ has adopted.From the above information, identify the organisational structure adopted by Tumco Ltd.’ and state any three advantages of the structure so identified. |
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Answer» Functional Structure is the organisational structure adopted by ‘Yumco Ltd.’. Advantages of Functional Structure : (i) It leads to occupational specialisation since emphasis is placed on specific functions. (ii) It promotes control and coordination within a department because of similarity in the tasks being performed. (iii) It increases managerial and operational efficiency. (iv) It lowers cost as it reduces duplication of effort. (v) It makes training of employees easier as it focuses on a limited range of skills. (vi) It ensures that different functions get due attention. |
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| 6913. |
Explain any four points of importance of the controlling function of management. |
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Answer» Importance of controlling : (i) Accomplishing organisational goals. (ii) Making efficient use of resources. (iii) Ensuring order and discipline. (iv) Improving employee motivation. (v) Judging accuracy of standards. (vi) Facilitating co-ordination in action. Detailed Answer : Importance of controlling : (i) Accomplishing organisational goals : The controlling function measures progress towards the organisational goals and brings to light the deviations, if any, and indicates corrective action. It thus, guides the organisation and keeps it on the right track so that organisational goals might be achieved. (ii) Judging accuracy of standards : A good control system enables management to verify whether the standards set are accurate and objective. An efficient control system keeps a careful check on the changes taking place in the organisation and in the environment and helps to review and revise the standards in light of such changes. (iii) Making efficient use of resources : By exercising control, a manager seeks to reduce wastage and spoilage of resources. Each activity is performed in accordance with predetermined standards and norms. This ensures that resources are used in the most effective and efficient manner. (iv) Improving employee motivation : A good control system ensures that employees know well in advance what they are expected to do and what are the standards of performance on the basis of which they will be appraised. It thus, motivates them and helps them to give better performance. (v) Ensuring order and discipline : Controlling creates an atmosphere of order and discipline in the organisation and helps to minimise dishonest behaviour on the part of the employees by keeping a close check on their activities. (vi) Facilitating coordination in action : Controlling provides direction to all activities and efforts for achieving organisational goals. Each department and employee is governed by predetermined standards which are coordinated with one another. This ensures that overall organisational objectives are achieved. |
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| 6914. |
Ram Murthy, the CEO of ‘Goodcare Hospitals’, a leading chain of hospitals, decided to reward the good work of the doctors of his organisation. For this he instituted two running trophies. A ‘Healthcare Achievers Trophy’ to acknowledge and appreciate the tireless efforts of the doctors who rendered selfless services to the patients and another ‘Beti Bachao Trophy’ to recognise the outstanding work done by the doctors in saving the girl child. The CEO also wanted to improve the health services in rural areas all over the country. He decided that all doctors must work in rural areas for at least six months. He also decided that the paramedical staff should be employed locally. 1. Identify the incentive provided by ‘Goodcare Hospitals’ to its doctors through running trophies. 2. Which need of the doctors will be satisfied through the incentive; identified in part ? State. 3. State any two types of human needs suggested by Maslow for motivation. |
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Answer» 1. Employee recognition, a non-financial incentive. 2. Esteem or ego needs – These needs are needs for self-esteem and need for other esteem. Self-esteem needs include needs for self-respect, self confidence, competence, autonomy and knowledge. Other esteem needs relate to reputation, prestige, power, status, recognition and respect of others. These needs stand fourth in the hierarchy of five needs suggested by Maslow. 3. (i) Safety/Security Needs (ii) Affiliation/Belonging Needs (iii) Physiological Needs (iv) Self actualisation Needs. |
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| 6915. |
Explain briefly any two points of importance of consumer protection from the point of view of business. |
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Answer» Following points explain the importance of consumer protection in India : 1. long-term interest of business – It is in the long-term interest of the business to satisfy their customers. After liberalisation and globalisation, it is in the interest of the firm to produce quality goods and maintain its reputation. Satisfied consumers ensure long-term profit-maximisation. 2. Consumer awareness – Now-a-days, consumers are becoming more conscious of their rights against the malpractices by the business. There are many consumer organisations which are iftaking efforts to build consumer awareness. 3. Social responsibility – A business has social responsibilities towards various groups. Consumers form an important group among the many stakeholders of business. Hence, business has to take care of interests of consumers. |
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| 6916. |
Aradhana and Gandharv are heads of two different departments in ‘Yumco Ltd.’ They are efficient managers and are able to motivate the employees of their respective departments to improve performance. However, their drive to excel in their own sphere of activity instead of giving emphasis on objectives of the enterprise has hindered the interaction between the departments that Aradhana and Gandharv are heading. Often there are inter-departmental conflicts and they have become incompatible. This has proved to be harmful in the fulfilment of the organisational objectives. The situation has deteriorated to such an extent that the CEO of ‘Yumco Ltd/ has hired a consultant, Rashmi, to resolve the problem. After studying the situation closely, Rashmi found that the problem has arisen due to inflexibility and a narrow perspective on the part of both Aradhana and Gandharv. She is of the view that this situation is a result of the type of organisational structure ‘Yumco Ltd/ has adopted. From the above information, identify the organisational structure adopted by ‘Yumco Ltd.’ and state any three advantages of the structure so identified. |
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Answer» The organisational structure adopted by Yumco Ltd. is a Functional Structure. Following are the advantages of functional structure of organisation : 1. Coordination – Functional structure of organisation facilitates coordination of activities at intra-departmental and inter-departmental levels. Top executives coordinate the activities at inter-departmental level whereas heads of respective departments coordinate the activities within the departments. 2. Effective control – Functional structure of organisation recognises each major function as a separate department, which ensures occupational specialisation. Functional structure enables top-executives to exercise effective control over a limited number of functions. 3. Training – Functional structure makes training of employees easier because the focus of training is only on limited range of skills. 4. Lower cost – Functional structure leads to minimal duplication of efforts which result in economies of scale. This lowers cost of organisation. |
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| 6917. |
In 2015, Naveen left his luxurious life in Mumbai, where he worked as a manager for Blue Birds Ltd. He shifted to Begampur, Chhattisgarh to fulfil his grandmother’s dream of converting their 25-acre ancestral land into a fertile farm. For this, he set out specific goals along with the activities to be performed to achieve the goals. Every activity was a challenge since he was clueless about farming. He learnt every activity from tilling the land to sowing the seeds. To aid farmers, he launched his own company ‘Innovative Agriculture Solutions Pvt. Ltd’.It was difficult initially as no one trusted an urban youth telling farmers about farming. But when everything was discussed in detail, the farmers started taking interest. He wanted to ensure that the future events meet effectively the best interests of the company. Through sales forecasting, he prepared an annual plan for production and sales.He also found that the farmers grew only paddy, which was an activity of 3-4 months and the land remained idle for the rest 8-9 months of the year. He not only identified but evaluated various alternatives through which the farms could be utilised for the remaining months of the year. Through correct foresight and logical and systematic thinking based on analysis of all facts, all alternatives were examined and evaluated. He presented a plan to the farmers, where after harvesting paddy, vegetables could be grown.The above case highlights the features of one of the functions of management. By quoting lines from the above identify and explain these features |
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Answer» Features of planning are : (i) Planning focuses on achieving objectives ‘He set out specific goals along with the activities to be performed to achieve the goals’ Planning focuses on achieving objectives as specific goals set out in the plans along with activities to be undertaken to achieve the goals. (ii) Planning is futuristic 'He wanted to ensure that the future events meet effectively the best interests of the company’. ‘Through sales forecasting, he prepared an annual plan for production and sales’ Planning is futuristic as it involves looking ahead and preparing for the future ‘Through sales forecasting, he prepared an annual plan for production and sales’ Planning is futuristic as it involves looking ahead and preparing for the future. (iii) Planning involves decision making ‘He not only identified but evaluated various alternatives through which the farms could be utilised for the remaining months of the year’. ‘…. all alternatives were examined and evaluated’ Planning involves decision making as it involves a choice from among the various alternative courses of action. (iv) Planning is a mental exercise ‘Through correct foresight and logical and systematic thinking based on analysis of all facts…’. Planning is a mental exercise as it is intellectual activity of thinking rather than doing. |
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| 6918. |
Explain any four points of importance of the controlling function of management. |
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Answer» Following points highlight the importance of controlling function of management: 1. Accomplishing organisational goals – Controlling ensures that results of business operations conform as closely as possible to the predetermined objectives. Controlling tries to correct the deviation between actual results and desired results. 2. Judging accuracy of standards – A control system enables management to verify whether standards are objective. Standards need to be revised in the light of changes in environment. 3. Making efficient use of resources – Controlling reduces wastage of resources. Since activities are performed in accordance with standards, resources are used in efficient manner. 4. Improving employee motivation – The existence of control system has a positive impact on the behaviour of the employees. Employees know well in advance what are the standards of performance. It motivates them to improve their performance. 5. Ensuring order and discipline – Controlling creates an atmosphere of order and discipline in the organisation. Controlling minimises the dishonest behaviour on the part of the employees. |
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| 6919. |
In 2015, Naveen left his luxurious life in Mumbai, where he worked as a manager for Blue Birds Ltd. He shifted to Begampur, Chhattisgarh to fulfil his grandmother’s dream of converting their 25 – acre ancestral land into a fertile farm. For this he set out specific goals along with the activities to be performed to achieve the goals. Every activity was a challenge since he was clueless about farming. He learnt every activity from filling the land to sowing the seeds. To aid farmers he launched his own company ‘Innovative Agriculture Solutions Pvt. Ltd’. It was difficult initially as no one trusted an urban youth telling farmers about fanning. But when everything was discussed in detail the fanners started taking interest. He wanted to ensure that the future events meet effectively the best interests of the company. Through sales forecasting, he prepared an annual plan for production and sales. He also found that the farmers grew only paddy, which was an activity of 3-4 months and the land remained idle for the rest 8-9 months of the year. He not only identified but evaluated various alternatives through which the farms could be utilised for the remaining months of the year. Through correct foresight and logical and systematic thinking based on analysis of all facts, all alternatives were examined and evaluated. He presented a plan to the fanners, where after harvesting paddy, vegetables could be grown. The above case highlights the features of one of the functions of management. By quoting lines from the above identify and explain these features. |
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Answer» The given case highlights the features of “Planning”. Following are the features of planning as highlighted by given case : (i) Planning is related to achieving objectives – Planning focuses on achieving objectives. Planning involves setting of specific objectives and determining the techniques to achieve them. Line given: “He set out specific goals along with the activities to be performed to achieve the goals.” (ii) Planning is futuristic – Planning is forward looking. Planning involves anticipating the future course of events. Planning is based on forecasting i.e., assessing the future events. Line given: “He wanted to ensure that the future events meet effectively the best interests of the company.” Or “Through sales forecasting, he prepared an annual plan for production and sales.” (iii) Planning involves decision-making – Planning involves choosing among alternatives to achieve a particular objective. A manager has to choose only one alternative which is best suited to the enterprise. Line given: “He not only identified but evaluated various alternatives through which the farms could be utilised for the remaining months of the year.” Or ” all alternatives were examined and evaluated.” (iv) Planning is a mental exercise – Planning requires application of mind involving foresightedness, intelligent imagination and judgment. The quality of planning varies according to quality of mind of the manager. Line given: “Through correct foresight and logical and systematic thinking based on analysis of all facts |
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| 6920. |
The cost of equity capital is all of the following EXCEPT: a) the minimum rate that a firm should earn on the equity-financed part of an investment. b) a return on the equity-financed portion of an investment that, at worst, leaves the market price of the stock unchanged. c) by far the most difficult component cost to estimate. d) generally lower than the before-tax cost of debt. |
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Answer» d) generally lower than the before-tax cost of debt. |
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| 6921. |
A firm's inventory turnover (IT) is 5 times on a cost of goods sold (COGS) of $800,000. If the IT is improved to 8 times while the COGS remains the same, a substantial amount of funds is released from or additionally invested in inventory. In fact, a) $160,000 is released. b) $100,000 is additionally invested. c) $60,000 is additionally invested. d) $60,000 is released |
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Answer» d) $60,000 is released |
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| 6922. |
A single, overall cost of capital is often used to evaluate projects because: a) it avoids the problem of computing the required rate of return for each investment proposal. b) it is the only way to measure a firm's required return. c) it acknowledges that most new investment projects have about the same degree of risk. d) it acknowledges that most new investment projects offer about the same expected return. |
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Answer» a) it avoids the problem of computing the required rate of return for each investment proposal. |
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| 6923. |
Ninety-percent of X company's total sales of $600,000 is on credit. If its year-end receivables turnover is 5, the average collection period (based on a 365-day year) and the year-end receivables are, respectively: a) 365 days and $108,000. b) 73 days and $120,000. c) 73 days and $108,000. d) 81 days and $108,000. |
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Answer» c) 73 days and $108,000. |
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| 6924. |
An increase in the firm's receivable turnover ratio means that: a) it is collecting credit sales more quickly than before. b) cash sales have decreased. c) it has initiated more liberal credit terms. d) inventories have increased |
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Answer» a) it is collecting credit sales more quickly than before. |
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| 6925. |
Costs of not carrying enough inventory include: a) lost sales. b) customer disappointment. c) possible worker layoffs. d) all of these. |
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Answer» d) all of these |
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| 6926. |
Which of the following relationships hold true for safety stock? a) the greater the risk of running out of stock, the smaller the safety of stock. b) the larger the opportunity cost of the funds invested in inventory, the larger the safety stock. c) the greater the uncertainty associated with forecasted demand, the smaller the safety stock. d) the higher the profit margin per unit, the higher the safety stock necessary |
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Answer» d) the higher the profit margin per unit, the higher the safety stock necessary |
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| 6927. |
The credit policy of Spurling Products is "1.5/10, net 35." At present 30% of the customers take the discount, 62% pay within the net period, and the rest pay within 45 days of invoice. What would receivables be if all customers took the cash discount? a) Lower than the present level. b) No change from the present level. c) Higher than the present level. d) Unable to determine without more information. |
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Answer» a) Lower than the present level |
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| 6928. |
Increasing the credit period from 30 to 60 days, in response to a similar action taken by all of our competitors, would likely result in: a) an increase in the average collection period. b) a decrease in bad debt losses. c) an increase in sales. d) higher profits. |
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Answer» a) an increase in the average collection period. |
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| 6929. |
Giving reasons state whether the included or excluded in/from domestic territory.Branch of Punjab National Bank in America. |
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Answer» Excluded Reason: As it is outside the domestic territory of our country. |
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| 6930. |
Giving reasons state whether the included or excluded in/from domestic territory.Indian Embassy in China. |
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Answer» Included Reason: As it is within the domestic territory of our country. |
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| 6931. |
Giving reasons state whether the included or excluded in/from domestic territory.Branch of Foreign Bank in India. |
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Answer» Included Reason: As it is within the domestic territory of our country. |
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| 6932. |
Giving reasons state whether the included or excluded in/from domestic territory.Company in India owned by an American. |
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Answer» Included Reason: As it is within the domestic territory of our country. |
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| 6933. |
Giving reasons state whether the included or excluded in/from domestic territory.Microsoft Office in India. |
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Answer» Included Reason: As it is within the domestic territory of our country. |
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| 6934. |
Giving reasons, classify the stock or flow.A five hundred rupee note. |
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Answer» Stock concept Reason: It is related to a point of time. |
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| 6935. |
Giving reasons, classify the stock or flow.Machinery of a firm. |
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Answer» Stock concept Reason: It relates to a point of time. |
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| 6936. |
Giving reasons, classify the stock or flow.Income of a servant. |
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Answer» Flow concept Reason: It is related to a period of one month or one year. |
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| 6937. |
Giving reasons, classify the stock or flow.Production of Wheat. |
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Answer» Flow concept Reason: It is related to a period of time. |
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| 6938. |
Giving reasons, classify the intermediate or final goods.Mobile sets purchased by a mobile dealer. |
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Answer» Intermediate product Reason: Mobile sets purchased by a mobile dealer is an intermediate product because these are purchased for resale. |
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| 6939. |
Giving reasons, classify the stock or flow.Foreign Assets. |
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Answer» Stock concept Reason: It relates to a point of time. |
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| 6940. |
Giving reasons, classify the intermediate or final goods.Expenditure on improvement of a machine in a factory. |
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Answer» Final Product Reason: Expenditure on improvement of a machine in a factory is a final expenditure as the machine is repeatedly used for several years as a fixed asset. Improvement of a machine implies improvement of asset value (through investment expenditure). |
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| 6941. |
Giving reasons, classify the intermediate or final goods.Expenditure on maintenance of an office building. |
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Answer» Intermediate product Reason: Expenditure on maintenance of an office building is an intermediate expenditure as the things purchased for repair and maintenance are used up during the period of one year. |
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| 6942. |
Giving reasons, classify the intermediate or final goods.Purchase of furniture by a firm. |
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Answer» Final Product Reason: Purchase of furniture by a firm is a final expenditure because furniture is repeatedly used by the firm for several years and this is of high value. |
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| 6943. |
Giving reasons, classify the stock or flow.Foreign Investment. |
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Answer» Flow concept Reason: It relates to a period of time. |
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| 6944. |
Giving reasons, classify the stock or flow.Business capital of business. |
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Answer» Stock concept Reason: It is related to a point of time. |
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| 6945. |
Giving reasons, classify the intermediate or final goods.Expenditure on maintenance by a firm. |
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Answer» Intermediate product Reason: Expenditure on maintenance by a firm is an intermediate expenditure as the things purchased for repair and maintenance are used up during the period of one year. |
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| 6946. |
Giving reasons, classify the stock or flow.Gross Domestic Product. |
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Answer» Flow concept Reason: Gross domestic product is a flow because it is measured during a period of time. |
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| 6947. |
Giving reasons, classify the intermediate or final goods.Paper purchased by a publisher. |
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Answer» Intermediate product Reason: It is an intermediate product as paper is used for further production during the same year. |
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| 6948. |
Giving reasons, classify the factor income or transfer income.Bonus received on Diwali. |
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Answer» Factor income Reason: It is earned by rendering productive services. |
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| 6949. |
Giving reasons, classify the intermediate or final goods.Milk purchased by households. |
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Answer» Final product Reason: It is a final product as it is used by households for final consumption. |
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| 6950. |
Giving reasons, classify the factor income or transfer income.Birthday gift received from a friend. |
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Answer» Transfer income Reason: It is received without rendering any productive services. |
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