QUESTION BANK

BBA

SEMESTER I

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 FOR PRIVATE CIRCULATION

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 QUESTION BANK

MANAGEMENT PROCESS AND

ORGANIZATION BEHAVIOR

BBA-101

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 QUESTION BANK
MANAGEMENT PROCESS AND ORGANIZATION BEHAVIOR
BBA – I

UNIT I

I MULTIPLE CHOICE QUESTIONS:

1. An efficient supervisor should posses

A. Technical skills
B. Conceptual skills
C. Human relation skills
D. All the above

2. Which of the following is NOT an interpersonal role of a manager?

A. figurehead
B. leader
C. disseminator
D. liaison

3. Performing virtually all activities that involve subordinates is an example of

A. figurehead
B. leader
C. Liaison
D. None of the given

4. The process of monitoring, comparing and correcting is called

A. Controlling
B. Coordinating
C. Leading
D. Directing

5. Who Described the Classical Approach as the Engineering Approach?

A. Gullick
B. Fayol
C. Urwick
D. Mooney

6. ________ is a French Industrialist Who Identified the basic Management functions.

A. Weber
B. Taylor
C. Herzberg
D. Fayol

7. Management exists at which levels of the organization?

A. Top

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 B. Bottom
C. Middle
D. All

8. Under mechanism of scientific management, scientific task setting includes

A. Time study
B. Motion study
C. Method study
D. All of the above

9. The philosophy of management known as total quality management developed

primarily out of the work of
A. Henri Fayol
B. Frederick Taylor
C. Robert McNamara
D. W. Edwards Deming

10. Writing an Organizational Strategic plan is an example of ________

A. Staffing
B. Leading
C. Organizing
D. Planning

11. Which of the following skill is most essential to get most out of the people?
A. Technical skill
B. Human Skill
C. Conceptual skill
D. Communication Skill

12. Monitoring organizational progress towards goal attainment is called

A. Controlling
B. Organizing
C. Leading
D. Planning

13. An efficient supervisor should posses

A. Technical Skills
B. Conceptual Skills
C. Human Relations skills
D. All the Above

14. The process of monitoring, comparing and correcting is called

A. Controlling
B. Coordinating
C. Leading
D. Directing

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15. Which one of the following individuals is most closely associated with scientific
management?
A. Fredrick Taylor
B. Mary Parker Follett
C. Harold Koontz
D. Max Weber

16. A plan developed to carry out a course of action that is not likely to be repeated in the
future is called
A. Specific Plan
B. Single Use plan
C. Reaction plan
D. Directional plan

17. The degree to which jobs are standardized and guided by rules and procedures is called:
A. Work specialization
B. Centralization
C. Decentralization
D. Formalization

18. Which of the following is not included in Decisional role of a manager?

A. Entrepreneur
B. Disturbance handler
C. Collecting
D. Negotiator

19. If a manager gives information regarding organization policies and actions, then he/she
is performing an ______ role.
A. Interpersonal
B. Informational
C. Decisional
D. None of the given

20. ------------- is the use of scientific method to define the “one best way” for a job to be
done.
A. Scientific management
B. Bureaucratic management
C. Administrative management
D. Financial Management

21. A Finance Manager who reads the Wall Street Journal On a regular Basis would be
performing which of the roles?
A. Figurehead
B. Monitor
C. Disseminator

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 D. Interpersonal

22. Which of the following are the principles of ‘Scientific Management’?

A. Development of a science of work
B. Different Piece Rate Plan
C. Standardization of tools and equipment
D. Scientific selection of workman

23. According to Mintzberg the leader of an organization performs __________,

A. An Interpersonal role
B. An Informational role
C. A Decisional role
D. All the Above

24. Which one of the following is NOT the main concern of ‘Scientific Management’?
A. Production
B. Efficiency
C. Mechanistic Methods
D. Rationality

25. An efficient supervisor should posses

A. Technical skills
B. Conceptual skills
C. Human relation skills
D. All the above

26. Process or administrative theory of organization is being given by

A. Elton Mayo
B. Henry Fayol
C. F.W. Taylor
D. Max Weber

27. “Hawthorne experiment” which was a real beginning of applied research in OB was
conducted by
A. Elton Mayo
B. Henry Fayol
C. F.W. Taylor
D. Max Weber

28. “------------ are social inventions for accomplishing goals through group efforts”
A. Management
B. Organization
C. Leadership
D. Behaviour

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29. The Hawthorne studies are of utmost significance as they form an honest and concerted
attempt to understand:
A. The human factor
B. Employee attitudes
C. The worker’s social situations
D. All the above

30. Which one is not a recognised key skill of management?

A. Conceptual skills
B. Human skills
C. Technical skills
D. Writing skills

31. Authority, discipline, unity of command, and unity of direction are:

A. Taylor's four principles of management.
B. Principles of the human relations movement.
C. Elements of Weber's ideal bureaucratic structure.
D. Four of Fayol's fourteen principles of management.

32. Some of the other fields of study that affect management theory or practice include:
A. Political science, philosophy, anthropology and sociology
B. Zoology, psychology, sociology and philosophy.
C. Anthropology, astrology, political science and psychology.
D. Political science, sociology, typography and economics.

33. The philosophy of management known as total quality management developed

primarily out of the work of:
A. Henri Fayol
B. Frederick Taylor
C. Robert McNamara
D. W. Edwards Deming

34. ------------------- roles involve people and other duties that are ceremonial
and symbolic in nature.
A. Informational.
B. Interpersonal.
C. Decisional.
D. All the given options

35. Which of the following is NOT an interpersonal role of a manager?

A. figurehead
B. leader
C. disseminator
D. liaison

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36. Management by Objective (MBO) is also known as
A. Management by results
B. Management by goals
C. Management by planning
D. Management by evaluation

37. Management by Objective (MBO) is a

A. Sets of rules
B. Series of procedure
C. Way of thinking about management
D. All of the above

38. In Management by Objective (MBO), the manager and subordinate jointly

A. Identify Common goals
B. Defines each individual’s major areas of responsibility
C. Assess the contribution of each of its members
D. All of the above

39. The following is not true for MBO

A. It acts an effective Performance appraisal tool
B. The superior evaluate the individual concerned
C. It forces the management to plan the activities in a systematic way
D. Better management and improved communication

40. The following is (are) the disadvantage(s) of Management by Objective (MBO).

A. Inflexibility
B. Lack of relevant skill
C. Lack of individual motivation
D. All of the above

41. MBO process is as follows

A. set worker objective – Review organizational goal –monitor progress – Evaluation
– Give reward
B. Review organizational goal – set worker objective – monitor progress –
Evaluation – Give reward
C. Review organizational goal – monitor progress – set worker objective –Evaluation
– Give reward
D. Review organizational goal – set worker objective – monitor progress– Give
reward – Evaluation

42. In MBO, objectives can be set in the following domain(s)

A. Production
B. Marketing
C. R&D
D. All of the above

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43. In MBO, objectives can be
A. Collective
B. individual
C. both (A) and (B)
D. none of the above

44. Management by objectives (MBO) was first popularized by

A. Henry Fayol
B. Peter Drucker
C. George S. Odiorne
D. Mary Parker

45. Management by objectives is the process of defining specific objectives

A. within a department
B. among the customers
C. within an organization
D. all of the above

ANS. (1)(D), (2)(C), (3)(C), (4)(A), (5)(D), (6)(D), (7)(D), (8)(D), (9)(C), (10)(D), (11)(B),
(12)(A), (13)(D), (14)(A), (15)(A), (16)(B), (17)(D), (18)(C), (19)(B), (20)(A), (21)(B),
(22)(B), (23)(D), (24)(D), (25)(D), (26)(D), (27)(B), (28)(C), (29)(C), (30)(B), (31)(A),
(32)(D), (33)(D), (34)(B), (35)(B), (36)(A), (37)(D), (38)(D), (39)(B), (40)(D), (41)(B),
(42)(D), (43)(C), (44)(B), (45)(C)

II SHORT ANSWER TYPE QUESTIONS

1. Explain the significance of management.

2. Explain in brief the finance function of management.
3. The term management has no universal definition. Do you agree? Support your answer
with valid reasoning.
4. Explain the contingency approach to management.
5. What are the economic objectives of an organization?
6. Differentiate between Interpersonal and Informational role of manager.
7. Organization is a system comprising of many sub systems. Elucidate.
8. The term management has no universal definition. Do you agree? Give valid reasoning
9. Differentiate between Unity of command Vs Unity of direction.
10. What do you understand by Administrative management?
11. Write briefly about any three essential qualities of production manager.
12. What are Conceptual skills and Technical skills?
13. To perform managerial functions managers, must fit in many different roles. Explain with
examples.
14. Organization is a system comprised of many sub-systems. Elucidate.
15. Management is an art or science. Explain.
16. Mathematical and statistical solutions are most effective in management decision making.
17. Explain management as a process.

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18. Critically evaluate Taylor’s Scientific Theory of Management.
19. Differentiate between a line manager and a staff manager.
20. Explain the concept of bounded rationality
21. Differentiate between delegation and decentralization.
22. Explain Weber’s Bureaucracy Theory.
23. Differentiate between management and administration.
24. Why is management called as an ongoing and never-ending process?
25. What do you understand by management by objectives?
26. Differentiate between Effectiveness Vs Efficiency?
27. Differentiate between System approach Vs Contingency approach?
28. Explain “The term management has no universal definition”?
29. Differentiate between Contingency Approach Vs Systems approach?
30. Differentiate between Management Vs Administration?

III LONG ANSWER QUESTIONS

1. What are the four basic activities that comprise the management process? How are they
related to one another?
2. “Management is the art of getting things done”. Do you agree with the statement? Give
reasons.
3. Discuss the contribution of Taylor and Fayol to the field of Management.
4. What do you understand by a system? Discuss management as a system bringing out its
basic features as such.
5. To manage is to forecast and plan to organize, to command, to coordinate and to control”.
Elaborate this statement.
6. What functions and duties are related with top and middle level management in modern
industrial units?
7. Explain the levels of management. Enumerate and discuss their functions as well.
8. Explain the fourteen principles of management.
9. ‘MBO represents rational and systematic approach to management’ elucidate the
statement in the light of features and objectives of MBO.
10. ‘Planning is the primary requisite of any organization’. Do you agree? Support your
answer with examples.
11. “All organizations need management”. Comment on this statement.
12. MBO adopts a goal oriented approach rather than a work oriented approach. Discuss.
13. What is decentralization of authority? What are its advantages and disadvantages?
14. ‘The basic reason for emergence of informal groups is that the formal organization does
not satisfy all the needs of the employees’. Elucidate.
15. How will you classify the levels of management in an organization? Describe the
functions performed by different levels of management.
16. “Planning is mere ritual in the fast-changing environment.” How far do you agree with
this statement? Why?
17. Explain the relationship of planning and controlling
18. ‘Decision making is the essence of managing.’ Comment and explain the features of a
rational decision
19. What is departmentation? Explain the various basis of departmentation.

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20. Explain span of management. Do you agree with the view that the principle of “Unity of
command” is not of much relevance these days?
21. What are the various stages in the process of rational decision making? Discuss with
reference to a business decision.
22. “Centralization is not necessarily bad, nor is decentralization necessarily good”.
Elucidate the statement.
23. “Policies are guide-posts for managerial action”. Discuss the statement and give at least
two examples form any business management
24. “Centralization is not necessarily bad, nor is decentralization necessarily good”.
Elucidate the statement.
25. What is decentralization of authority? What are its advantages and disadvantages?
26. What is effective management? How does effectiveness differ from efficiency?
27. Discuss the various characteristics and functions of management.
28. What are the four basic activities that comprise the management process? How are they
related to one another?
29. Describe the process of management and explain how it can be used to accomplish results
in any organization.
30. Enumerate the managerial skills and state their relative importance about different levels
of management in an origination.

UNIT II

I MULTIPLE CHOICE QUESTIONS:

1. One of the factors which learning organizations possess is a climate of openness and
the other is
A. Motivation
B. Closeness
C. Trust
D. Delegation

2. According to Herzberg, which of the following is a maintenance factor?

A. Salary
B. Work itself B
C. Responsibility
D. Recognition

3. Individual employees can be converted into team player through

A. Appropriate feedback
B. Training
C. Monitoring
D. Demonstration

4. Budget is what type of control?

A. Standard
B. Process

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 C. Division
D. Financial

5. Leadership can_______ subordinates to help the organization achieve its goals.

A. Motivate
B. Communicate
C. Direct
D. All of the above

6. Leaders who inspire followers to transcend their own self-interests for the good of the
organization and can have a profound and extraordinary effect on followers are_____
leaders.
A. Transactional
B. Transformational
C. Democratic
D. Autocratic

7. Controlling activities which are in process is

A. Feed forward Control
B. Concurrent Control
C. Feedback Control
D. None of the above

8. __________ is a communication that flows from a higher level to one or more lower
levels in the organization.
A. Horizontal communication
B. Upward communication
C. Downward communication
D. None of given option

9. Because leading is one of the four basic managerial functions, _____ leaders.
A. all managers are
B. all managers should be
C. some managers are
D. some managers should be

10. If a trait theory of leadership were true, then all leaders would possess _______
A. Charisma
B. the same traits
C. Different traits
D. Seven traits

11. Which leadership style tends to centralize authority and make unilateral decisions?
A. cultural style
B. autocratic style
C. democratic style

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 D. laissez-faire

12. Monica's boss allows her to make any decision she thinks is important on the spot
without consulting anyone. Monica's boss has this kind of leadership style.
A. laissez-faire
B. autocratic style
C. democratic style
D. hands on style

13. Tannenbaum and Schmidt's continuum studies suggested that managers should move
toward_____ leadership styles.
A. manager-centered
B. task centered
C. employee centered
D. quality centered

14. The two-factor theory is based on which factors?

A. Hygiene and behavioural
B. Safety and self – esteem
C. Self - actualization and status quotient
D. None of the above

15. The process of monitoring performance, comparing it with goals and correcting any
significant deviations is known as
A. Planning
B. Organizing
C. Leading
D. Controlling

16. The theory that an individual tends to act in a certain way, with the expectation that the
act will be followed by a given outcome and according to the attractiveness of the
outcome is____________
A. Equity theory
B. Three-needs theory
C. Motivation-hygiene theory
D. Expectancy theory

17. According to Abraham Maslow, the most elevated type of need is_____
A. Self-actualization
B. Physiological
C. Esteem
D. Safety

18. Which of the following statements would a Theory X manager consider to be true?
A. The average person can learn to accept and even seek responsibility
B. Employees will shirk responsibility

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 C. Employees will exercise self-direction if they are committed to the objectives
D. Employees view work as being as natural as play

19. According to Herzberg, which of the following is a maintenance factor?

A. Salary
B. Work itself
C. Responsibility
D. Recognition

20. Which leadership theory suggests that management style should adapt itself to changing
circumstances?
A. Contingency theory
B. Delegation theory
C. Autocratic theory
D. Participatory theory

21. Basis of “Autocratic Model of OB is

A. Economic resources
B. Power
C. Leadership
D. Partnership

22. Which of the following is not an internal force of change?

A. technology
B. strategy
C. workforce
D. employee attitudes

23. ________ need involves the desire to affiliate with and be accepted by others
A. Esteem
B. Belongingness
C. Safety
D. Self-Actualization

24. Challenging goals usually lead to__________ performance from individuals and groups.
A. Higher
B. Lower
C. Excellent
D. None of the Above

25. According to Herzberg, which of the following is a maintenance factor?

A. Salary
B. Work itself B
C. Responsibility
D. Recognition

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26. What is the term used to define the number of subordinates directly controlled by a
manager?
A. Division management
B. Departmentation
C. Sphere of influence
D. Span of management

27. What kind of organizational structure combines a vertical chain of command with
horizontal reporting requirements?
A. Line Authority
B. Matrix
C. Functional

28. One of the factors which learning organizations possess is a climate of openness and the
other factor is
A. Motivation
B. Closeness
C. Trust
D. Delegation

29. Organizational Culture is retained in organizations through

A. Stories
B. Rituals
C. Top Management
D. All the above

30. One of the most helpful mechanisms for refining a spoken or written communication is
called the
A. Grapevine
B. Counseling service
C. Five C.s
D. Complaint system

31. _________ plans have clearly defined objectives.

A. Directional
B. Flexible
C. Specific
D. Standing

32. Functional managers are responsible

A. For a single area of activity
B. To the upper level of management and staff
C. For complex organizational sub-units
D. For obtaining copyrights and patents for newly developed processes and
equipment.

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33. Which pattern reflects a pure executive form of management?
A. Functional
B. Line
C. Line and Staff
D. Committee

34. One of the factors which learning organizations possess is a climate of openness and the
other factor is
A. Motivation
B. Closeness
C. Trust
D. Delegation

35. Organizational Culture is retained in organizations through

A. Stories
B. Rituals
C. Top Management
D. All the above

36. Which one of the following is/are leadership theories?

A. Trait theory
B. Behavior theory
C. Contingency theory
D. All of these

37. Least Preferred Co-worker (LPC) model of leadership was developed by

A. Martin Evans
B. Robert House
C. Fred Fielder
D. Whitton

38. Path-goal model of Leadership was introduced by

A. Martin Evans & Robert House
B. Fred Fielder
C. Whetton
D. Cameron

39. Which of the following is not a contingency theory of leadership

A. LPC theory
B. Path Goal theory
C. Vroom-Yetton-Jago theory
D. Job centered Leadership

40. The following is (are) the element(s) of control

A. Authority and knowledge
B. Guidance and direction

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 C. Constraint and restraint
D. All of the above

41. The exception principles to control means

A. Control over significant deviations
B. Control over all deviations
C. Control over no deviations

42. Control over the activities while they are in process is:
A. Feed forward Control
B. Concurrent control
C. Feedback Control

43. Controls exercised by lower level managers are:

A. Strategic level controls
B. Tactical level controls
C. Operating level controls

44. Principle of preventive control means:

A. Avoid the occurrence of deviations
B. Correct the deviations
C. None of these

45. Which one of the following need is not coming under McClelland theory of motivation?
A. Need for power
B. Need for achievement
C. Need for affiliation
D. Need for actualization

ANS. (1)(C), (2)(B), (3)(B), (4)(D), (5)(A), (6)(B), (7)(B), (8)(D), (9)(B), (10)(C), (11)(B),
(12)(A), (13)(C), (14)(A), (15)(D), (16)(A), (17)(A), (18)(B), (19)(B), (20)(A), (21)(B),
(22)(D), (23)(B), (24)(A), (25)(B), (26)(D), (27)(B), (28)(C), (29)(D), (30)(C), (31)(A),
(32)(A), (33)(A), (34)(C), (35)(D), (36)(D), (37)(C), (38)(A), (39)(D), (40)(A), (41)(A),
(42)(B), (43)(C), (44)(A), (45)(D)

II SHORT ANSWER TYPE QUESTIONS

1. “Staffing is the responsibility of every manager and not of the personnel department
alone”. Elucidate.
2. Explain the process of manpower planning.
3. Explain the limits of on the job training.
4. What are the essentials of a good staffing policy?
5. What are the principles of staffing?
6. “Motivation is the core of management”. Comment. What practical suggestion would
you offer to the management to motivate its staff in an industrial organization
7. Critically evaluate MC Gregor’s theory X and Theory Y of motivation
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8. “Herzberg’s Two Factor Theory is not universally applicable”. Explain this statement by
critically evaluating Herzberg’s two factor theory of motivation.
9. Explain the distinguishing features of Ouchi’s Theory Z
10. What are determinants of high morale? Suggest some measures which would raise the
level of morale in an organization.
11. “Management is a change agent”. Discuss and identify the role of change agents in
organization.
12. Bring out the distinction between Maslow and Herzberg theories of motivation. What is
the role of money in motivating the managers?
13. “A good leader is one who understands his subordinates, their need and their sources of
satisfaction”. Comment on this statement and highlight the traits of effective leaders.
14. “A good leader is one who understands his subordinates, their need and their sources of
satisfaction”. Comment on this statement and highlight the traits of effective leaders.
15. Mention some of the needed skills for leaders / managers to be effective.
16. Briefly identify the major styles from Blake and Mouton’s Managerial Grid.
17. What is leadership? Explain its features.
18. What are the important traits of an effective leader?
19. Explain Likert’s system of management.
20. “Management is Different from Leadership”. Explain.
21. Why is control needed in a business organization?
22. Explain the limitations in the process of effective control.
23. Planning and controlling are inseparable in the management process. Do you agree? Give
reasons.
24. What do you understand by feed forward control?
25. Explain the objectives of budgetary control.
26. Differentiate between Strategic and Tactical Planning
27. Differentiate between Standing Plans and single use plans
28. Differentiate between Informal Vs Formal Organization
29. Explain the concept of matrix application?
30. Explain the Relationship between planning and control

III LONG ANSWER TYPE QUESTIONS

1. Discuss the advantages and disadvantages of internal and external sources of

recruitment.
2. “Staffing is the responsibility of every manager and not of the personnel department
alone”. Elucidate.
3. Manpower planning is one of the most important decisions taken at the managerial
level. Do you agree? Give reasons.
4. “Staffing is the process of identifying, assessing, placing, evaluating and developing
individuals at work”. Explain the statement highlighting the significance of staffing in
modern business organizations.
5. What guidelines need to be followed for making an interview successful?
6. Bring out the distinction between Maslow and Herzberg theories of motivation. What is
the role of money in motivating the managers?

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7. “Motivation is the core of management”. Comment. What practical suggestion would
you offer to the management to motivate its staff in an industrial organization.
8. “Leaders make a real difference in an organization’s performance” build an argument in
support and against of this statement.
9. Explain Maintenance factors and motivational Factors under Herzberg’s two factor
theory of motivation.
10. “Herzberg’s Two Factor Theory is not universally applicable”. Explain this statement
by critically evaluating Herzberg’s two factor theory of motivation.
11. What are the problems associated with motivating employees?
12. Identify the leadership styles describing the situations under which each style is useful.
13. “Leaders make a real difference in an organization’s performance” build an argument in
support and against of this statement.
14. A good leader is one who understands his subordinates, their need and their sources of
satisfaction”. Comment on this statement and highlight the traits of effective leaders.
15. What are the important traits of an effective leader.
16. Explain Likert’s system of management.
17. “Management is Different from Leadership”. Explain.
18. Explain the concept of managerial grid.
19. Compare and contrast between system 1 and system 4 of leadership under Likert’s
management system.
20. What is budgetary control? Explain its limitations. How can budgetary control be made
more effective?
21. Control guides operations, improves motivation and morale, and facilitates
coordination. Explain the statement highlighting the importance of control in a business
organization.
22. In a good organization structure, everybody knows the part he must play and how his
role relates to those of others. Good organization structure cannot, however, be a
substitute of control. Elucidate.
23. Control guides operations, improves motivation and morale, and facilitates
coordination. Explain the statement highlighting the importance of control in a business
organization.
24. Resistance to control can be overcome by establishing simple, understandable
objectives and positive controls in consultation with people concerned. Elucidate.
25. Control is needed to measure progress, to uncover deviations and to indicate corrective
action. Discuss highlighting the steps in the process of control.
26. What do you understand by matrix origination? Under what circumstances is it most
useful? Differentiate it from project organization.
27. Many executives wants to delegate their function but do not know just how to do it?
Suggest some guidelines to help such executives in deciding what to delegate and what
not to delegate?
28. Explain span of management. Do you agree with the view that the principle of “Unity of
command” is not of much relevance these days?
29. Sunrise Steel Ltd. has decided to diversify its activities and undertake production of
‘mobiles’. The CEO of the company seeks your advice on whether to group the
activities by product or by function. What advice will you tender and why?

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30. ‘Decision making is the essence of managing.’ Comment and explain the features of a
rational decision

UNIT III

I MULTIPLE CHOICE QUESTIONS

1. Challenging goals usually lead to__________ performance from individuals and

groups.
A. Higher
B. Lower
C. Excellent
D. None of the Above

2. Surroundings are___________ needs

A. Existence
B. Relatedness
C. Growth
D. None of the Above

3. A variation of the electronic meeting that links together media from different locations
is___________
A. E-commerce
B. The Delphi technique
C. Video conference
D. E-conference

4. Intuitive, affective or feeling, physical/sensing, and rational or reasoning are aspects of

which of the following?
A. Gifted students
B. Multiple intelligences
C. Learning styles
D. Creativity

5. ne of the main values underpinning the work of Organisation Development practitioners

is:
A. Legitimizing managers’ right to manage
B. Empowering employees to act
C. Improving profitability
D. Providing organisations with the right solution

6. Challenging goals usually lead to__________ performance from individuals and

groups.
A. Higher
B. Lower
C. Excellent

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 D. None of the Above

7. When a group gives some of its leadership positions to the members of another group, it
is
A. Contracting
B. Co-opting
C. Co-alition
D. Competition

8. Organisation Development (OD) is primarily concerned with

A. Improving the human side of the organisation
B. Improving quality
C. Improving financial performance
D. Reducing job numbers

9. One of the main values underpinning the work of Organisation Development (OD)
practitioner’s is
A. Legitimising managers’ right to manage
B. Empowering employees to act
C. Improving profitability
D. Providing organisations with the right solution

10. An extent to which an organisation achieves its predetermined objectives within given
resources and without undue strain to its members
A. Organization behaviour
B. Organizational culture
C. Organizational spirit
D. Organizational effectiveness

11. Needs that impel creativity and innovation, along with the desire to have a productive
impact on our surroundings are___________ needs
A. Existence
B. Relatedness
C. Growth
D. None of the Above

12. What best describes the Adult ego state?

A. It may be associated with having fun, playing, impulsiveness, rebelliousness,
spontaneous behaviour and emotional responses.
B. It refers to feelings about right and wrong and how to care for other people
C. In this state, we may be objective, rational, reasonable, seeking information and
receiving facts.
D. None of the above

22
14. ___________ is a personality dimension describing someone who is good natured,
cooperative, and trusting
A. Existence
B. Emotional
C. Agreeableness
D. Introversion

15. A personality dimension that characterizes someone as calm, self-confident, secure

(positive) versus nervous, depressed, and insecure (negative)
A. Existence
B. Emotional stability
C. Agreeableness
D. Introversion

16. An individual most likely to engage in political behavior would have all of the
following except a/an:
A. High need for power
B. High ability to self-monitor
C. High charisma rating
D. Internal locus of control

17. Which of the following statements about the determinants of personality is true?
A. Personality appears to be a result of external factors
B. Personality appears to be a result of mainly hereditary factors
C. Personality appears to be a result of mainly environmental factors
D. Personality appears to be a result of both hereditary and environmental factors

18. _____ reflect a person’s preferences regarding the ends to be achieved

A. Terminal values
B. Instrumental values
C. Honesty
D. Fairness

19. Values like working hard, being creative and honest are the means which lead towards
achieving organizational goals. Which of the following term best describes these
values?
A. Terminal values
B. Instrumental values
C. Theoretical values
D. Social values

20. “They are the worst firm I have ever dealt with” is ………components of attitude.
A. Affective component
B. Cognitive component
C. Intentional component
D. None of these

23
21. “I will never do business with them again” is ………components of attitude.
A. Affective component
B. Cognitive component
C. Intentional component
D. None of these

22. If a solution to a problem is not vital to the functioning of an organization and

management is willing to overlook the causes of the conflict, managers may choose to
use which type of conflict resolution?
A. Confrontation
B. Avoidance
C. Dominance
D. Compromise

23. Which of the following are terminal values?

A. Accuracy and creativity
B. Excellence and innovation
C. Profitability and hard work
D. Quality and capability

24. In which of the five stages of group development suggested by Tuckman and Jensen do
groups build success in a cohesive and co-operative manner?
A. Forming
B. Storming
C. Norming
D. Performing

25. Following is not a component of Attitude

A. Cognitive
B. Affective
C. Behavioural
D. Value expressive.

26. The purpose of job enrichment is to

A. Expand the number of tasks an individual can do
B. Increase job efficiency
C. Increase job effectiveness
D. Increase job satisfaction of middle management

27. One method of bringing a group to agreement is called

A. Proportional values
B. Consensus B
C. Accordance
D. Conformance

24
28. The groups to which an individual aspires to belong, i.e. the one with which he or she
identifies is called
A. Coalitions
B. Committees
C. Reference groups
D. Task groups

29. Individual employees can be converted into team player’s through

A. Appropriate feedback
B. Training
C. Monitoring
D. Demonstration

30. If the followers are able and unwilling, then the leader must use the
A. Authoritarian style
B. Participative style
C. Situational style
D. Strategic style

31. According to situational leadership approach, the style that denotes a high-task and a
low-relationship style is
A. Selling style
B. Delegating style
C. Participating style
D. Telling style

32. The purpose of job enrichment is to

A. Expand the number of tasks an individual can do
B. Increase job efficiency
C. Increase job effectiveness
D. Increase job satisfaction of middle management

33. One method of bringing a group to agreement is called

A. Proportional values
B. Consensus
C. Accordance
D. Conformance

34. The groups to which an individual aspires to belong, i.e. the one with which he or she
identifies is called
A. Coalitions
B. Committees
C. Reference groups
D. Task groups

25
35. ERG theory was introduced by_____________.
A. Clayton Alderfer
B. McClelland
C. Douglas McGregor
D. J. Stacey Adams

36. Which of the following statements best describes a behaviourist approach to learning?
A. People learn by forming patterns and associations in their mind
B. People learn from experience
C. People learn through punishment and reward.
D. People learn by sharing 'war stories'.

37. People learn and memorize things by contextualizing them in a pattern, or by making
associations. Which approach to learning does this best describe?
A. Behaviourist view of learning
B. Experiential learning
C. Gestaltist view of learning
D. Organizational learning

38. Classical conditioning is associated with the work of:

A. Skinner.
B. Pavlov.
C. Freud.
D. Thorndike.

39. Which of the following is a concept associated with classical conditioning?

A. The unconditioned stimulus.
B. The unconditioned response.
C. The conditioned response.
D. All of the above.

40. In operant conditioning an organism:

A. comes to pair a neutral stimulus with an unconditioned response.
B. receives reinforcement before exhibiting the desired behaviour as an inducement
to behave in that way.
C. receives reinforcement after behaving in the desired way.
D. only learns to avoid punishment.

41. Social Learning Theory gives prominence to learning that occurs:

A. by imitation.
B. by modelling.
C. vicariously.
D. all of the above.

42. A person's _______________ comprises internal factors, such as ability, intelligence

and personality, and will determine how an individual respond to certain stimuli.

26
 A. Sensory limit
B. Psychological threshold
C. Perceptual set
D. Cognitive set

43. Which of the following will influence an individual's perceptions?

A. Previous experiences.
B. Sensory limitations.
C. Individual needs.
D. All of the above.

44. What is the relationship between what one perceives and objective reality?
A. They are the same
B. They can be substantially different.
C. They should be the same.
D. They are rarely if ever the same.
E. They cannot be the same.

45. Which of the following is not a factor in the individual perceiver?

A. Attitude
B. motive
C. Expectation
D. Location
E. Perception

ANS. (1)(A), (2)(C), (3)(B), (4)(B), (5)(B), (6)(A), (7)(C), (8)(A), (9)(B), (10)(A), (11)(C),
(12)(C), (13)(__), (14)(C), (15)(B), (16)(C), (17)(D), (18)(A), (19)(B), (20)(B), (21)(C),
(22)(B), (23)(B), (24)(D), (25)(D), (26)(A), (27)(B), (28)(C), (29)(B), (30)(A), (31)(D),
(32)(A), (33)(B), (34)(C), (35)(A), (36)(C), (37)(C), (38)(C), (39)(A), (40)(C), (41)(D),
(42)(C), (43)(D), (44)(B), (45)(D)

II SHORT ANSWER TYPE QUESTIONS

1. What do you understand by Johari Window?

2. “Most behaviors are learned; some from the experience of self and some from the
experience of others “. Discuss the statement and explain it with the help of various
theories of learning.
3. What are Boundary less organizations?
Strategic decisions have far reaching consequences to the organisations.
4. List and explain the four ways employees can express job dissatisfaction.
5. Discuss three different criteria for ethical decision making
6. Identify and describe the different types of communication flows
7. Explain how Fred Luthans differentiates between successful and effective managers
8. Explain the concept of personality. Discuss the personality traits that affect behaviour.
9. “Job related attitudes are significant for understanding organsiational behaviour”.
Explain this statement.

27
10. Write a detailed note on various types of values that are important for managers in
today’s environment.
11. “High cohesiveness in group leads to higher group productivity” do you agree or
disagree? Explain your position.
12. “Do you agree that high degree of cohesiveness in groups leads to higher productivity?”
Comment. Also, state as to how high degree of cohesiveness can be achieved.
13. Explain the relationship between attitude and behavior.
14. Explain the constructive theory as a part of the learning theory of management.
15. Define Perception. Discuss the different factors that affect our perception in
understanding human behavior.
16. Briefly discuss the major theoretical explanations for group’s formation. Which
explanation do you think is most relevant to the study of organizational behaviour? Give
reasons
17. What is the difference between a group & a team? What are the different types of work
teams?
18. Explain the concept of Transactional Analysis. How does TA help predict behaviour of
people?
19. What do you understand by Cognitive theory?
20. What do you understand by life position as a part of transactional analysis What are
Type A and Type B personalities?
21. How will you determine the personality of a person? Also explain the personality traits
that have relevance from the point of view of Organizational Behaviour.
22. Briefly examine the immaturity-maturity theory of Chris Argyris.
23. Explain the concept of personality. Do biological factors affect the personality of an
individual?
24. Explain the concept of group vs. team
25. What are the various types of transactions?
26. Differentiate between Job Involvement and Job Satisfaction
27. Differentiate between Motivational and Hygiene factors
28. Differentiate between Autocratic and Free- rein leadership styles
29. Explain the importance of personality, needs and situation in determination of
behaviour.
30. Why do managers need to understand the concept of individual differences?

III LONG ANSWER TYPE QUESTIONS:

1. What are the determinants of our personality?

2. Define Organizational Behavior and explain the need of understanding human behavior
in organizations
3. “Organizational Behavior represents interactions among individuals, groups and the
organization.: Elucidate this statement.
4. “OB is relatively a young field of study that borrows many concepts and methods from
the behavioral and social sciences,” Comment. What advantages and disadvantages can
you see in such youth and diversity?
5. What are the factors that influence personality?
6. What role does biology play in personality?

28
7. What does it mean that personality is unique to the individuals?
8. Explain the importance of personality, needs and situation in determination of
behaviour.
9. Why do managers need to understand the concept of individual differences?
10. Briefly explain the meaning of organizational behavior.
11. What is meant by dealing with changed employee expectations?
12. Perception is the process of receiving, selecting, organizing, interpreting and reacting to
sensory stimuli or data.
13. Organizational Behaviour represents interaction among individuals, groups and
organization.
14. How do individual decisions differ from group decisions? What are the positive and
negative aspects of group decision making? How can group decision making be
improved?
15. Briefly discuss the major theoretical explanations for group’s formation. Which
explanation do you think is most relevant to the study of organizational behaviour? Give
reasons
16. What is the difference between a group & a team? What are the different types of work
teams?
17. Explain the concept of Transactional Analysis. How does TA help predict behaviour of
people?
18. Define perception and explain the process of perception from the point of view of
organizational behavior.
19. Discuss the steps which you would take as a manager to reduce perceptual errors.
20. Explain internal attention factors which affect perceptual selectivity. How do
sometimes errors creep in perception?
21. “Learning leads to change in human behaviour.” Comment.
22. Explain the concept of personality. Do biological factors affect the personality of an
individual?
23. Explain the circumstances in which “repression” and “sharpening into conflict”
approaches should be used for handling conflicts
24. Johari window is helpful for self-awareness, personal development, group development
and understanding relationships. Explain with logical reasons.
25. “Do you agree that high degree of cohesiveness in groups leads to higher productivity?”
Comment. Also, state as to how high degree of cohesiveness can be achieved.
26. A good leader is one who understands his subordinates, their need and their sources of
satisfaction”. Comment on this statement and highlight the traits of effective leaders.
27. (a) Briefly identify the major styles from Blake and Mouton’s Managerial Grid.
(b) Mention some of the needed skills for leaders / managers to be effective.
28. “Organizational Behavior represents interactions among individuals, groups and the
organization.: Elucidate this statement.
29. “OB is relatively a young field of study that borrows many concepts and methods from
the behavioral and social sciences,” Comment. What advantages and disadvantages can
you see in such youth and diversity?
30. A large unit manufacturing electrical goods which has been known for its liberal
personnel policies and fringe benefits is facing the problem of low productivity and high
absenteeism. How should the management improve the organizational climate?

29
UNIT IV

I MULTIPLE CHOICE QUESTIONS

1. Change management strategies can be

A. Overt or Immediate
B. Empirical – Rational
C. Copying – Imitation
D. Empirical– Imitation

2. The changes which are introduced internally by management in a systematic manner are
A. Unplanned Changes
B. Fast Changes
C. Planned Changes
D. Slow Changes

3. _____ reflect a person’s preferences regarding the ends to be achieved

A. Terminal values
B. Instrumental values
C. Honesty
D. Fairness

4. _____ reflect an incompatibility between a person’s two or more attitudes, or between his
behaviorism attitudes
A. Value congruence
B. Terminal values
C. Instrumental values
D. Cognitive dissonance

5. The importance of change can be all except

A. It abandons negative cultural values.
B. It raises motivation.
C. It leads to satisfaction among employees.
D. It makes organization monotonous.

6. Planned change is all except

A. Intentional
B. Goal oriented
C. Accidental
D. Systematic

7. All are the external factors responsible for change except change in
A. Government Policies
B. Market scenario
C. Technology

30
 D. Leadership

8. In business transformation, changes in operational concept include all except

A. Tactics
B. Techniques
C. Rules
D. Procedures

9. Transformation is reflected in people mind by the way of all except

A. Employee think
B. Society changes
C. Employees speak
D. Employee act

10. Change management can be all expect

A. Reactive & proactive’
B. Internal & external
C. Continuous & acc. To necessities
D. Single disciplinary

11. Unplanned change is all below except

A. Accidental
B. Intentional
C. Sudden
D. Uninformed

12. ________occurs as group members attempt to assess the ground rules that will apply to
a task and to group interaction
A. Forming
B. Storming
C. Norming
D. Performing

13. ___________ is a personality dimension describing someone who is sociable,

gregarious, and assertive
A. Esteem
B. Extroversion
C. Safety
D. Self-Actualization

14. ___________ is a personality dimension describing someone who is good natured,

cooperative, and trusting.
A. Existence
B. Emotional
C. Agreeableness
D. Introversion

31
15. Conflict can arise in the situation of
A. Competition
B. Cooperation
C. Coordination
D. Both competition and cooperation

16. If you support the idea that conflict should be eliminated, you are supporting which of
the following views of conflict? Select correct option
A. The traditional view
B. The human relations view
C. The interactionist view
D. The positivistic view

17. Conflict is a state of

A. Commonness of values and beliefs
B. Opposition of values and beliefs
C. Neutral values and belief
D. All the above

18. Which of the following is not an internal force of change?

A. Technology
B. Strategy
C. Workforce
D. employee attitudes

19. Which of the following is not an external force of change?

A. Marketplace
B. government laws and regulations
C. economic changes
D. workforce

20. A budget is what type of control?

A. Standard
B. Process
C. Division
D. Financial

21. _____________ focuses on solving conflicts by allowing the desires of the other party
to prevail
A. Avoidance
B. Accommodation
C. Competition
D. Compromise

32
22. _______________ aims to solve conflict issues by having each party give up
some desired outcomes to get other desired outcomes.
A. Avoidance
B. Collaboration
C. Competition
D. Compromise

23. Surroundings are___________ needs

A. Existence
B. Relatedness
C. Growth
D. None of the Above

24. Challenging goals usually lead to__________ performance from individuals and groups
A. Higher
B. Lower
C. Excellent
D. None of the Above

25. Inputs necessary for the group to operate are____________ inputs

A. Group Size
B. Work Group
C. Group Task
D. None of the Above

26. A person's _______________ comprises internal factors, such as ability, intelligence

and personality, and will determine how an individual respond to certain stimuli.
A. Sensory limit
B. Psychological threshold
C. Perceptual set
D. Cognitive set

27. Which of the following will influence an individual's perceptions?

A. Previous experiences.
B. Sensory limitations.
C. Individual needs.
D. All of the above.

28. The process by which the perception of a person is formulated based on a single
favourable or unfavourable trait or impression, where other relevant characteristics of
that person are dismissed is called:
A. Stereotyping.
B. Clouded judgment.
C. The angel effects.
D. The halo effects.

33
29. What are the three classes of factors that influence perception?
A. factors in the setting, factors in the environment and factors in the motives
B. factors in the perceiver, factors in the target and factors in the situation
C. factors in the character, factors in knowledge and factors in experience
D. factors in the personality, factors in the character and factors in the values

30. What do we call the process by which individuals organize and interpret their sensory
impressions to give meaning to their environment?
A. interpretation
B. environmental analysis
C. social verification
D. perception

31. Two people see the same thing at the same time yet interpret it differently. Where do the
factors that operate to shape their dissimilar perceptions reside?
A. the perceivers
B. the target
C. the timing
D. the context
E. the situation

32. Following is not a component of Attitude

A. Cognitive
B. Affective
C. Behavioral
D. Value expressive.

33. _____ reflect a person’s preferences regarding the ends to be achieved.

A. Terminal values
B. Instrumental values
C. Honesty
D. Fairness

34. _____ reflect an incompatibility between a person’s two or more attitudes, or between his
behaviorism attitudes.
A. Value congruence
B. Terminal values
C. Instrumental values
D. Cognitive dissonance

35. ___________ is a personality dimension describing someone who is sociable,

gregarious, and assertive.
A. Esteem
B. Extroversion
C. Safety
D. Self-Actualization

34
36. Inputs necessary for the group to operate are____________ inputs.
A. Group Size
B. Work Group
C. Group Task
D. None of the Above

37. A group of employees with expertise in a variety of specialty areas who are brought
together to work on a project or specific activity is a:
A. Cross functional team
B. Self-managed team
C. Virtual team
D. Problem-solving team

38. __________ synergy is the force that results when the combined gains from group
interaction (as opposed to individuals operating alone) are greater than group process
losses.
A. Positive
B. Negative

39. ________occurs as group members attempt to assess the ground rules that will apply to
a task and to group interaction.
A. Forming
B. Storming
C. Norming
D. Performing

40. _______________ occurs as energy is channeled toward a task and as norms support
teamwork.
A. Forming
B. Storming
C. Performing
D. Adjourning
E. Norming

41. If a solution to a problem is not vital to the functioning of inorganization and

management is willing to overlook the causes of the conflict, managers may choose to
use which type of conflict resolution?
A. Confrontation
B. Avoidance
C. Dominance
D. Compromise

42. _____________ focuses on solving conflicts by allowing the desires of the other party
to prevail.
A. Avoidance

35
 B. Accommodation
C. Competition
D. Compromise
E. Collaboration

43. _______________ aims to solve conflict issues by having each party give up some
desired outcomes in order to get other desired outcomes.
A. Avoidance
B. Collaboration
C. Competition
D. Compromise
E. Accommodation

44. ______________ is the adverse reaction people must excessive pressure placed on
them from extraordinary demands, constraints, or opportunities.
A. Stereotyping
B. Stress
C. A halo effect
D. Creativity

45. Types of groups consists

A. Primary Group
B. Information Group
C. Formal Group
D. All of these

ANS. (1)(B), (2)(C), (3)(B), (4)(A), (5)(D), (6)(D), (7)(D), (8)(C), (9)(D), (10)(B), (11)(A),
(12)(A), (13)(B), (14)(C), (15)(C), (16)(A), (17)(A), (18)(D), (19)(D), (20)(D), (21)(D),
(22)(D), (23)(C), (24)(A), (25)(D), (26)(C), (27)(D), (28)(D), (29)(B), (30)(D), (31)(A),
(32)(D), (33)(A), (34)(D), (35)(B), (36)(B), (37)(A), (38)(A), (39)(A), (40)(C), (41)(B),
(42)(D), (43)(D), (44)(B), (45)(D)

II SHORT ANSWET TYPE QUESTIONS

1. What do you understand by group dynamics?

2. Define organizational development. Explain its nature
3. What are the characteristics of organizational development?
4. What do you understand by action research?
5. Define the term organization culture.
6. Good Socialization process helps retain employees.do you agree? Validate your answer
with proper reasoning.
7. Explain the various types of conflict.
8. Explain the characteristics of organizational culture.
9. What are the various functions of organizational culture?
10. Explain the various dimensions of organizational culture.
11. What do you understand by change dynamics?
36
12. What are psychological contracts?
13. Explain ego states in transactional analysis
14. What is meant by organizational change? Explain the concept with examples.
15. What do you understand by social loafing? Give ways to prevent it.
16. Explain the Classical and social learning theories
17. Differentiate between Job Involvement and Job Satisfaction
18. Management by objective is both a technique of planning and motivation.
19. Decision-making is all pervasive activity.
20. Strategic decisions have far reaching consequences to the organizations
21. Differentiate between organizational culture and organizational climate.
22. Why do organizational conflicts arise?
23. Give ways through which organizational conflicts can be resolved.
24. Differentiate between planned and unplanned change.
25. Differentiate between group and team.
26. Explain the Types of Informal groups.
27. Explain the Levels of conflicts in an organization.
28. Explain that “Values are stronger than attitudes”
29. How does the knowledge of perception improve managers‟ ability to understand?
human nature and improve the quality of managerial decisions?
30. Write a short note on attributions.

III LONG ANSWER TYPE QUESTIONS

1. Explain the determinants of individual behaviour. What are the common perceptual
errors that can affect decision-making by the managers?
2. How do values originate? What is the relationship between values and culture?
3. “Change is highly important to the success of an organization, but many people have the
tendency, overtly or covertly to resist it”. How do you think resistance to change can be
overcome?
4. “Management is a change agent”. Discuss and identify the role of change agents in
organization.
5. What is the difference between a group & a team? What are the different types of work
teams?
6. Define the term Organizational Behaviour. Discuss its models.
7. What is organizational culture? What are the advantages and disadvantages of a strong
organizational culture?
8. What is politics? Is organizational politics good or bad? Why? Explain with valid
reasoning.
9. Discuss in detail the stages of team development
10. “Perception is a process of input- throughput- output Analysis”. Comment. Give some
examples of perceptual sets from work settings.
11. Define Perception. Discuss the different factors that affect our perception in
understanding human behavior.
12. What is the difference between functional and dysfunctional conflict? Under what
circumstances might conflict be beneficial to a group?

37
 13. Briefly discuss the major theoretical explanations for group’s formation. Which
explanation do you think is most relevant to the study of organizational behaviour? Give
reasons
14. Explain the concept of Transactional Analysis. How does TA help predict behaviour of
people?
15. Explain the barriers of change. What are the ways of overcoming these barriers?
16. Explain the concept of Organizational Culture. What are its functions? How the
organizational culture is created and sustained?
17. “Managerial Ethos is the things of the past which have become irrelevant in information
age”. Critically evaluate the statement.
18. Write notes on the following: -
i. Morale and productivity.
ii. Organizational culture.
19. Where do, organizational ethics come from? Describe the contributions made by the
organization’s founder, managers and workers as well as laws and social norms. Which
do you think is most influential? Why
20. Explain the concept and features of Organizational Climate. What factors influence the
climate of an organization? Discuss in brief.
21. What are determinants of high morale? Suggest some measures which would raise the
level of morale in an organization.
22. How do external forces influence Organizational Change? Explain.
23. What challenges and opportunities do the managers face in the context of organizational
Behaviour.
24. Explain how technology has assisted in the communication process.
25. Explain roles played by visionary and charismatic leaders. Give a brief of two
Business/Political leaders who exhibit these traits.
26. “Job related attitudes are significant for understanding organisational behaviour”.
Explain this statement.
27. Both too low and too high levels of conflicts have serious effects on organisational
performance. Comment.
28. Perception is the process of receiving, selecting, organizing, interpreting and reacting to
sensory stimuli or data.
29. Briefly discuss the major theoretical explanations for group’s formation. Which
explanation do you think is most relevant to the study of organizational behaviour? Give
reasons
30. How would you define conflict? Distinguish between functional & dysfunctional
conflicts by giving suitable examples?

38
 QUESTION BANK

BUSINESS MATHEMATICS

BBA - 103

39
UNIT I

I Multiple Choice Questions:

1. From a group of 7 men and 6 women, five persons are to be selected to form a committee
so that at least 3 men are there on the committee. In how many ways can it be done?
A. 564
B. 645
C. 735
D. 756
E. None of these

2. In how many different ways can the letters of the word 'LEADING' be arranged in such a
way that the vowels always come together?
A. 360
B. 480
C. 720
D. 5040
E. None of these

3. In how many different ways can the letters of the word 'CORPORATION' be arranged so
that the vowels always come together?
A. 810
B. 1440
C. 2880
D. 50400
E. 5760

4. Out of 7 consonants and 4 vowels, how many words of 3 consonants and 2 vowels can be
formed?
A. 210
B. 1050
C. 25200
D. 21400
E. None of these

5. In how many ways can the letters of the word 'LEADER' be arranged?
A. 72
B. 144
C. 360
D. 720
E. None of these

6. In a group of 6 boys and 4 girls, four children are to be selected. In how many different
ways can they be selected such that at least one boy should be there?
A. 159

40
 B. 194
C. 205
D. 209
E. None of these

7. How many 3-digit numbers can be formed from the digits 2, 3, 5, 6, 7 and 9, which are
divisible by 5 and none of the digits is repeated?
A. 5
B. 10
C. 15
D. 20

8. In how many ways a committee, consisting of 5 men and 6 women can be formed from 8
men and 10 women?
A. 266
B. 5040
C. 11760
D. 86400
E. None of these

9. A box contains 2 white balls, 3 black balls and 4 red balls. In how many ways can 3 balls
be drawn from the box, if at least one black ball is to be included in the draw?
A. 32
B. 48
C. 64
D. 96
E. None of these

10. In how many different ways can the letters of the word 'DETAIL' be arranged in such a
way that the vowels occupy only the odd positions?
A. 32
B. 48
C. 36
D. 60
E. 120

11. In how many ways can a group of 5 men and 2 women be made out of a total of 7 men
and 3 women?
A. 63
B. 90
C. 126
D. 45
E. 135

41
12. How many 4-letters words with or without meaning, can be formed out of the letters of
the word, 'LOGARITHMS', if repetition of letters is not allowed?
A. 40
B. 400
C. 5040
D. 2520

13. In how many different ways can the letters of the word 'OPTICAL' be arranged so that
the vowels always come together?
A. 120
B. 720
C. 4320
D. 2160
E. None of these

14. Common difference of sequence 5,8,11,14,… is

A. 3
B. −3
C. 0
D. 1

15. Second term of sequence with general term n2 - 4/2 is

A. 3
B. −3
C. 1
D. 0

16. A.P whose nth term is 2n-1 is

A. 1,3,6,…
B. 2,3,5,…
C. 1,3,5,…
D. 5,3,1,…
17. 3 friends are met, they Shook hands with each other, how many handshakes took
place?
A. 2
B. 3
C. 5
D. 6

18. Ahmed has homework to do in math, chemistry, and English. How many ways can he
choose the order in which to do his homework?
A. 3
B. 4
C. 6
D. 1

42
19. How many arrangements are possible for four Students in a line?
A. 8
B. 12
C. 24
D. 4

20. A coin is tossed four times. How many possible sequences of heads or tails?
A. 8
B. 32
C. 16
D. 12

21. Common difference of sequence 2,8,12,16…..is

A. 4
B. −3
C. 0
D. 1

22. 2,4,6,8,10,12…. is
A. G.P
B. A.P
C. Geometric series
D. arithmetic series

23. Second term of sequence with general term n2 - 4/2 is

A. 3
B. −3
C. 1
D. 0

24. 1,8,15,22,29,36…… is
A. G.P
B. A.P
C. Geometric series
D. arithmetic series

25. A.P whose nth term is 2n-1 is

A. 1,3,6,…
B. 2,3,5,…
C. 1,3,5,…
D. 5,3,1,

26. If n > 1 is a positive integer, then the largest integer m such that ( nm + 1 ) divides ( 1 + n
+ n2 + …... + n127 )
A. 1,3,6,…

43
 B. 2,3,5,…
C. 1,3,5,…
D. 5,3,1,

27. The product of n positive numbers is unity. Then the i sum is

A. a positive integer
B. divisible by n
C. equal to n + n/1
D. never less than n

28. G1,G2..…Gn are said to be n geometric means between a and b if a,G1,…Gn,b is

A. a sequence
B. not a sequence
C. G.P
D. A.P

29. If A, G, H are arithmetic, geometric and harmonic means between a and b respectively,
then A,G,H are
A. in G.P
B. in A.P
C. in H.P
D. Real number

30. Common difference of sequence 5,8,11,14,… is

A. 3
B. −3
C. 0
D. 1

31. In how many ways can a committee schedule three speakers for three different meetings
if they are all available on any of the five possible dates?
A. 10
B. 36
C. 60
D. 120

32. How many even three-digit numbers can be formed from the digits 1,2,5,6,9 without
repeating any of the digits?
A. 120
B. 48
C. 40
D. 24

33. If ten friends shake hands mutually, then the total number of handshakes is
A. 45
B. 50

44
 C. 90
D. 100

34. The total number of integers between 200 and 400, each of which either begins with 3 or
ends with 3or both, is
A. 10
B. 100
C. 110
D. 120

35. What is the digit in the unit’s place in the number 15! / 100.
A. 5
B. 7
C. 3
D. 0

Ans. (1)(D), (2)(C), (3)(D), (4)(C), (5)(C), (6)(D), (7)(D), (8)(C), (9)(C), (10)(C), (11)(A),
(12)(C), (13) (B), (14)(A), (15)(D), (16)(C), (17)(B), (18)(C), (19)(C), (20)(C).
(21)(A), (22)(B), (23) (D), (24)(B), (25)(C), (26)(C), (27)(D), (28)(C), (29)(A), (30)(A),
(31)(C), (32)(D), (33)(A), (34)(C), (35)(D)

II SHORT ANSWER TYPE QUESTIONS:

1. In a college election, there are 4 candidates for President, 3 candidates for Vice-
President and 2 candidates for secretary. In how many ways can these three offices be
filled?
2. How many three letter words can be formed using letters of the words (i) SAMPLE and
(ii) SANCHIT
3. For what value of n is nP5 = 20 * nP3?
4. Show that (n+3)! / n! = n3 + 6n2 – 11n + 6
5. If six times the number of Permutations of n objects taken 3 at a time is equal to seven
times the number of permutation of (n-1) objects taken 3 at a time, find the value of n.
6. Prove that 0! = 1.
7. How many permutations can be made out of the letters of the words (i) MATHEMATICS
(ii) COMMERCE (iii) EXAMINATION (iv) EVALUATION
8. In how many of the permutations of 10 different things taken 4 at a time will one
particular (a) never occur (b) always occur
9. How many 5 digits numbers can be formed with the digits 2,3,5,,9, which are (i) greater
than 30000 (ii) less than 70000 and (iii) lies between 30000 and 90000
10. Let there be 3 red, 2 yellow and 2 green signal flags. How many different signals are
possible if we wish to make signals by arranging all of the vertically on a flag.
11. In how many different ways can examination paper be arranged in a row so that the best
and the worst paper may never come together?
12. There are 8 vacant chairs in a room. In how many ways can 5 persons take their seats?
13. How many words can be formed from the letters of the word DAUGHTER so that
vowels always occur together?

45
14. How many even numbers can be formed by using all the digits 2, 3, 4, 5 and 6, no digit
being repeated in any number?
15. If (n+1)! = 0 * (n-1)!. Find n.
16. Prove that n! + 1 is not divisible by any number between 2 and n. [Hint n! = n(n-1)(n-
2)…3.2.1. is divisible by all nos. between 2 and n. Adding 1 to make it indivisible by any
numbers between 2 and n.]
17. Prove that 2nPn = 2n.
18. If 56Pr+6: 54Pr+3 = 30800: 1. Find r.
19. Find 8P4 and 6P6.
20. In how many ways 8 beads can be arranged to form a necklace.
21. In how many ways persons are seated at round table so that all shall not have the same
neighbors in any two arrangements?
22. A family of 4 brothers and 3 sisters is to be arranged for photograph in one row. In how
many ways, can they be seated if (i) all sisters sit together (ii) no two sister’s sit together?
23. If different permutations of the word examination are listed as in dictionary, how many
items are there in the list before the first word starting with E?
24. 5 boys and 5 girls form a line with the boys and girls alternating. Find the number of
ways of making the line. In how many different ways could they form are circle such that
the boys and girls are alternate.
25. The letters of the word AGAIN are written in all possible orders. If these words are
written out as in dictionary, what is the 50th word?
26. The third term of a geometric progression is 4. Find out product of the first five terms.
27. Arithmetic mean between 2+√(2) and 2-√(2) is
28. 21 + 22 +23 +….+2n =
29. What is the 31st term of the sequence: 1, 4, 7, 10, ....
30. What is the 11th term of the sequence:
31. The number of ways to seat 3 boys and 2 girls in a row if each boy must sit next to at
least one girl is
32. Suppose there are ten balls in an urn, four blue, four red, and two green. The balls are
also numbered 1 to 10. How many ways are there to select an ordered sample of four
balls without replacement such that there are two blue balls and two red balls in the
sample?
33. How many different rearrangements are there of the letters in the word BUBBLE?
34. The number of four letter words that can be formed from the letters in SASSABY (each
letter occurring at most as many times as it occurs in SASSABY) is
35. How many different rearrangements are there of the letters in the word TATARS if the
two A’s are never adjacent?

III LONG ANSWER TYPE QUESTIONS:

1. Show that nCr = [(n-r+1)/r] * nCr-1

2. The question paper on Mathematics and Statistics contain 10 questions divided into two
groups of 5 questions each. In how many ways can an examinee select questions taking
atleast two questions from each group?
3. Find the number of combinations that can be made by taking 4 letters of the word
COMBINATION.

46
4. In how many ways it is possible to make a selection by taking any number of 15 fruits,
namely 7 mangoes, 5 apples and 3 oranges?
5. Find the number of ways in which a pack of 52 playing cards can be divided into 4 sets,
three of them having 17 cards each and fourth just 1 card.
6. Which term of AP 2, 5, 8, … is 56?
7. If 7 times the 7th term of an AP is equal to the 11 times the 11th term, show that the18th
term of the AP is 0.
8. Prove that in an AP the sum of terms equidistant from the beginning and the end is equal
to the sum of its first and last term.
9. If a, b, c are in AP. Prove that the following are also in AP.
(i) 1/bc, 1/ca, 1/ab
(ii) a2(b+c), b2(c+a), c2(a+b)
10. Find four numbers in AP, whose sum is 20 and sum of their squares, is 120.
11. Divide 20 into 4 parts which are in AP such that the product of the first and fourth is to
the product of second and third in the ration 2:3.
12. Show that the sum of all odd numbers between 2 and 1000 which are divisible by 3 is
83667 and those not divisible by 3 are 166332.
13. Find the nth term of the series whose sum to n terms is 3 n2 + 4n. Show that the series is
in AP.
14. A person saved Rs 16500 in 10 years. In each year after the first, he saved Rs. 100 more
than he did in the preceding year. How much did he save in the first year?
15. How many terms of GP 1, 4, 1,… must be taken to make 5the sum equal to 341.
16. A ball is dropped from a height of 10 ft, rebounds to half its height on each bounce. Find
the total vertical distance travelled when it hits the ground for the 5th time.
17. Insert geometric means between 16 and 256.
18 If G be the geometric mean between two given numbers and A1, A2 be the two
arithmetic means between them, prove that G2 = (2A1 – A2)(2A2 – A1).
19 The sum of four numbers in GP is 0 and the arithmetic mean of the first and the last
number is 18. Find the number.
20. The sum of 3 numbers in GP is 35 and their product is 1000. Find the numbers.
21 Show that the product of n GMs between two quantities a and b is (underrootab * 2m)n.
22. From gentlemen and 4 ladies, a committee of 5 is to be formed. In how many ways can
this be done if (i) the committee is to include at least one lady (ii) there is no restriction
about its formation
23. Of ten electricity bulbs, three are defective but its not known which are detective. In how
many ways three bulbs can be selected? How many of these selections will include at
least one defective bulb?
24. Out of 4 officers and 8 jawans, a committee of is to be formed. In how many ways can
this be done so as (i) to include exactly one officer (ii) to include atleast one officer?
25. Find the number of ways in which a cricket team consisting of 11 players can be selected
from 12 players. Also, find how many of these ways (i) include the captain (ii) do not
include the captain.
26. Use mathematical induction to prove that
1 + 2 + 3 + ... + n = n (n + 1) / 2
for all positive integers n.

47
27. Prove that
1 2 + 2 2 + 3 2 + ... + n 2 = n (n + 1) (2n + 1)/ 6
For all positive integers n.
28. Use mathematical induction to prove that
1 3 + 2 3 + 3 3 + ... + n 3 = n 2 (n + 1) 2 / 4
for all positive integers n.
29. Prove that for any positive integer number n , n 3 + 2 n is divisible by 3.
30. Prove that 3 n > n 2 for n = 1, n = 2 and use the mathematical induction to prove that 3 n > n 2 for
n a positive integer greater than 2.
31. A boy has 3 library tickets and 8 books of his interest in the library. Of these 8, he does
not want to borrow Mathematics Part II, unless Mathematics Part I is also borrowed. In
how many ways can he choose the three books to be borrowed?
32. In a small village, there are 87 families, of which 52 families have at most 2 children. In a
rural development programme 20 families are to be chosen for assistance, of which at
least 18 families must have at most 2 children. In how many ways can the choice be
made?
33. Three boys and three girls sit in a row. Find the probability that exactly two of the girls
are sitting next to each other (the remaining girl separated from them by at least one boy).
34. Suppose there are ten balls in an urn, four blue, four red, and two green. The balls are
also numbered 1 to 10. You are asked to select an ordered sample of four balls without
replacement. Let B ≥ 0 be the number of blue balls, R ≥ 0 be the number of red balls, and
G ≥ 0 be the number of green balls in your sample. How many ways are there to select
such a sample if exactly one of B, R, or G must be zero?
35. Three married couples are to be seated in a row having six seats in a cinema hall. If
spouses are to be seated next to each other, in how many ways can they be seated? Find
also the number of ways of their seating if all the ladies sit together

UNIT II

I MULTIPLE CHOICE QUESTIONS:

1. In transpose of matrix A, columns of matrix A becomes

A. multiple column
B. rows
C. multiples
D. divisors

2. Dimension of matrix which consists of m rows and n columns is written as

A. mxn
B. m⁄n
C. m-n
D. m+n

3. Relationships of nodes are to be summarized in a matrix which is classified as

A. unequal matrix
B. equal matrix
C. adjacency matrix

48
 D. adjacent matrix

4. Unit matrix written in format of square matrix is also called as

A. identity matrix
B. unidentified matrix
C. direction matrix
D. dimension matrix

5. Dimension of row vector can be written as

A. n+1
B. 1-n
C. 1+n
D. 1xn

6. According to determinant properties, multiple of one row is added to another row then
determinant
A. changed
B. unchanged
C. multiplied
D. added

7. Matrix which does not have an inverse by solving it, is classified as

A. unidentified matrix
B. linear matrix
C. non-singular matrix
D. singular matrix

8. In Gaussian reduction procedure, row operations are performed to transform matrix A

into
A. (m x m) identity matrix
B. (n x n) identity matrix
C. (f x p) identity matrix
D. (p x p) identity matrix

9. In computation of determinant of a matrix, significant efficiencies are introduced by

combining row to another which
A. contains subtraction
B. contains zero
C. contains ones
D. contains addition

10. The matrix

is a ?

49
 A. symmetric
B. skew-symmetric
C. Hermitian
D. skew-Hermitian

11. The number of non-zero rows in an echelon form is called?

A. reduced echelon form
B. rank of a matrix
C. conjugate of the matrix
D. cofactor of the matrix

12. What is a, if

is a singular matrix?
A. 5
B. 6
C. 7
D. 8

13. If C is the midpoint of AB and P is any point outside AB, then

A. →PA + →PB = 2 →PC
B. →PA + →PB = →PC
C. →PA + →PB + 2 →PC = →0
D. →PA + →PB + →PC = →0

14. For any vector →a , the value of ( →a × ^i) 2 + ( →a × ^k ) 2 is equal to

A. 3 →a2
B. →a2
C. 2→a2
D. 4 →a2

15. If

then |A| = ?
A. 2
B. 3
C. 4
D. 5

16. The matrix

50
 is a?
A. symmetric
B. skew-symmetric
C. Hermitian
D. skew-Hermitian

17. The matrix

is a?
A. scalar matrix
B. identity matrix
C. even matrix
D. odd matrix

18. If

then order of matrix A = ?

A. 2 x 2
B. 2 x 3
C. 3 x 2
D. 3 x 3

19. (AB)t = ?
A. BtAt
B. AtBt
C. AB
D. BA

20. If

then |A| = ?
A. 30
B. 40
C. 50
D. 60

51
21. Transpose of a rectangular matrix is a
A. rectangular matrix
B. diagonal matrix
C. square matrix
D. scaler matrix

22. Transpose of a column matrix is

A. zero matrix
B. diagonal matrix
C. column matrix
D. row matrix

23. Two matrices A and B are multiplied to get AB if

A. both are rectangular
B. both have same order
C. no of columns of A is equal to columns of B
D. no of rows of A is equal to no of columns of B

24. If |A| = 0, then A is

A. zero matrix
B. singular matrix
C. non-singular matrix
D. 0

25. If A is a symmetric matrix, then At =

A. A
B. |A|
C. 0
D. diagonal matrix

26. The value of the determinant is

A. A
B. |A|
C. 0
D. diagonal matrix

27. Matrix which does not have an inverse by solving it, is classified as
A. unidentified matrix
B. linear matrix
C. non-singular matrix
D. singular matrix

28. If the order of matrix A is m×p. And the order of B is p×n. Then the order of
matrix AB is?
A. m×n
B. n×m

52
 C. n×p
D. m×p

29. What is a, if

is a singular matrix ?
A. 5
B. 6
C. 7
D. 8

30. If A and B are matrices, then which from the following is true ?
A. A+B≠B+A
B. (At)t ≠ A
C. AB ≠ BA
D. All are true

31. The solution set of systems of equations as AX = B is calculated only when matrix
equation's both sides are
A. subtracted by A-1
B. added by A-1
C. multiplied by A-1
D. divided by A-1

32. The condition in Gaussian reduction procedure in which matrix A can be transformed
into an identity matrix if the matrix is
A. identified and non-inverse
B. unidentified and non-inverse
C. singular and have inverse
D. non-singular and have inverse

33. According to determinant properties, the determinant of resulting matrix equals to k delta
if elements of rows are
A. multiplied to constant k
B. added to constant k
C. multiplied to constant k
D. divided to constant

34. The product of identity matrix and any matrix A is equal to

A. product matrix
B. unidentified matrix
C. matrix A
D. identity matrix

53
35. In matrices, the inter-industry demand is summarized as
A. input-output matrix
B. output-input matrix
C. linear buying matrix
D. linear selling matrix

Ans. (1)(B), (2)(A), (3)(C), (4)(A), (5)(D), (6)(B),(7)(D), (8)(A), (9)(B), (10)(A), (11)(B),
(12)(D), (13)(A), (14)(C), (15)(B), (16)(A), (17)(A), (18)(D), (19)(A), (20)(D),
(21)(A), (22)(D), (23) (C), (24)(B), (25)(A), (26)(A), (27)(A), (28)(A), (29)(D), (30)(C),
(31)(C), (32)(D), (33)(C), (34)(C), (35)(A)

II SHORT ANSWER TYPE QUESTIONS:

1. Give the solution to the system of equations as an ordered triplet:

2 x +3 y − z = 10
x −3 z = 6
5 x −2 y = 13
5 x −2 y +3 z = 1
2. Given the system of equations: 3 x +4 y −2 z = 7
7 x +2 y − z = −5

2a) Calculate D

2b) Calculate Dy

2c) What is the exact value of y in the solution to the system?

3. Find the product AB where A and B are matrices given by:

4. Find the inverse of

5. Use the gauss Jordan elimination method to solve for x, y, and z.

16 -10 -12 -11
10 -15 15 5
-1 14 -9 0
3 -3 -16 -5

54
6. Use cramer’s rule to solve this system:
8x+5y = 2
2x-4y = -10

7. Evaluate C=AB
1 2 3   −1 2 
A=  B =  2 3 
0 1 4 
 5 0 
8. Prove (AB)-1 = B-1A-1

1 2
9. Evaluate the determinant:
3 4
10.
3 20 -11 0 16 -10 -12 -11
-14 5 -3 6 10 -15 15 5
+
15 2 9 -18 -1 14 -9 0
-19 4 -15 10 3 -3 -16 -5

11. Solve:
13 -17 -6 -18 -15 -9
-15 -14 9 - 19 -3 -8
12 -2 16 6 3 11

14. Find the inverse of:

2 -1 10 9
-16 -15 -2 15

15. Solve:
4 -9 15 2 11 -7 8 0
-10 -1x 10 -20 -11 12 11 -34
+ - =
-20 20 -9 -16 0 -1 -29 5
9 18 19 18 1 -8 27 44

16 . Calculate the determinant of:

Use the diagonals method.

20 9 8
3 12 -6
-19 4 11

55
 Expand along row 1.

-1 -19 8
-12 12 6
-9 -17 -14

17. Solve:
0 11 99 -33
X =
5 8 77 -9

18. Solve:
1 12 -10 -4 -97 111
X + =
-4 -7 8 -8 69 -58

19. Use an inverse matrix to solve the linear system.

3x - 6y = 45
9x - 5y = -8

20. 3x - 2y = -31

9x - 8y = -103

21. Use the inverse of the linear system to solve for x, y, and z.
5x - 3y - 7z = -50
-1x + 4y - 6z = -40
8x - 9y + 2z = -2

-2/3 1 2/3
A-1 = -2/3 22/23 37/69
-1/3 7/23 17/69

22. Solve equations using Cramer's rule

-1x - 7y = -12
-3x - 8y = 3

23 . Calculate the inverse of:

20 9 8
3 12 -6
-19 4 11

56
24. Use the gauss Jordan elimination method to solve for x, y, and z.
5x - 3y - 7z = -50
-1x + 4y - 6z = -40
8x - 9y + 2z = -2

25. Solve equations using Cramer's rule

5x + y = 12
3x - 5y = 32

26. A ball is dropped from a height of 10 ft, rebounds to half its height on each bounce. Find
the total vertical distance travelled when it hits the ground for the 5th time.

27. Insert geometric means between 16 and 256.

28. A family of 4 brothers and 3 sisters is to be arranged for photograph in one row. In how
many ways, can they be seated if (i) all sisters sit together (ii) no two sister’s sit together?

29. If different permutations of the word examination are listed as in dictionary, how many
items are there in the list before the first word starting with E?

30. The Funny Toys Company has four men available for work on four separate jobs. Only
one man can work on any one job. The cost of assigning each man to each job is given in
the following table. The objective is to assign men to jobs in such a way that the total cost
of assignment is minimum.

Job

Person 1 2 3 4

A 20 25 22 28

B 15 18 23 17

C 19 17 21 24

D 25 23 24 24

31. Explain the properties of Transpose and Adjoint of a matrix

32. Solve the equation using matrix inversion method:

X+2y-3z=6; 3x+2y-2z=3; 2x-y+z=2

33. Solve the equation using Cramer’s rule:

5x-7y+z=11; 6x-8y-z=15; 3x+2y-6z=7

57
34. Find the adjoint of the matrix A=
2 4 6
7 8 3
5 9 2

35. Explain properties of the Inverse of a matrix

III LONG ANSWER TYPE QUESTIONS:

 2 −4   4 −1 4 − 3 2 0 
Given A =  D = 3 1 E=  
3 
Q. B=   C=  
1 2 0  3  1 − 1 − 2

Calculate. If not possible, put undefined:

1. A+B
2. 3B
3. AC
2 −4
4.
1 3
5. AE
6. AD
7. B+D
8. B – 2A

Perform the following row operations beginning with matrix A and using your answer to each problem as
the matrix for the next.

9. –2R2 + R1→ R1
10. R1R2
1
11. − R2
10
1 6 5 
12.
 
Given the matrix 2 3 1 calculate the determinant.
 
 0 2 4 

 1 3 −1 8 
 
13. Given that the augmented matrix  0 3 1 11 represents a system of equations, give the
 0 0 4 8 
solution to the system of equations as an ordered triplet.

14. a. Solve the following system algebraically: x – 2y + 3z = 4

b. Use Gaussian Elimination to solve the following system: 2x + y – 4z = 3
-3x +4y - z = -2

58
 On Problems 15 and 16, use Cramer’s Rule (determinants) to solve.

15. 2x – 3y = -4 16. 5x + 2y – z = -7
5x + 7y = 1 x – 2y + 2z = 0
3y + z = 17
SOLVE using Gaussian Elimination:

17. -2x + 3y – z = -1 18. -2x + 3y – z = 4 19. x + y – z = 0

x – 2y + z = 3 2x – 3y + z = 1 3x – y + 3z = -2
x + 2y – 3z = -1

For 20 - 21, find the first four terms of each sequence. Then, for 20 - 23 identify each sequence
as arithmetic, geometric, or neither. If arithmetic, identify common difference. If geometric,
identify common ratio.

1 1 1 1
20. an = 3n 21. an = n + 5 22. , ,1,4 ,... 23. 4,1, , ,...
6 3 4 16

24. Given a1 = 5 and d = -3, find the first four terms of the arithmetic sequence.

25. Given the sequence 3, 6, 9, 12, . . . . write the formula for the nth term.
26. A company's employees are working to create a new energy bar. They would like the two key
ingredients to be peanut butter and oats, and they want to make sure they have enough
carbohydrates and protein in the bar to supply the athlete. They want a total of 31 carbohydrates
and 23 grams of protein to make the bar sufficient. Using the following table, create a system of
two equations and two unknowns to find how many tablespoons of each ingredient the bar will
need. Solve the system of equations using matrices. Show all work to receive full credit.
Carbohydrates Protein
Peanut Butter 2 6
Oats 5 1

27. The following matrix consists of a shoe store’s inventory of flip flops, clogs, and Mary
Janes in sizes small, medium, and large:

The store wants to know how much their inventory is worth for all the shoes. How
should we set up the matrix multiplication to determine this the best way?

28. An outbreak of Chicken Pox hit the local public schools. Approximately 15% of the
male and female juniors and 25% of the male and female seniors are currently healthy,
35% of the male and female juniors and 30% of the male and female seniors are currently
sick, and 50% of the male and female juniors and 45% of the male and female seniors are
carriers of Chicken Pox.

59
 There are 100 male juniors, 80 male seniors, 120 female juniors, and 100 female seniors.
Using two matrices and one matrix equation, find out how many males and how many
females (don’t need to divide by class) are healthy, sick, and carriers.

29. A florist is making 5 identical bridesmaid bouquets for a wedding. She has $610 to
spend (including tax) and wants 24 flowers for each bouquet. Roses cost $6 each, tulips
cost $4 each, and lilies cost $3 each. She wants to have twice as many roses as the other
2 flowers combined in each bouquet. How many roses, tulips, and lilies are in each
bouquet?

30. The following coefficient matrix, or input-output matrix, shows the values of energy and
manufacturing consumed internally needed to produce $1 of energy and manufacturing,
respectively. In other words, of the value of energy produced (x for energy, y for
manufacturing), 40 percent of it, or .40x pays to produce internal energy, and 25 percent
of it, or .25x pays for internal manufacturing. Of the value of the manufacturing
produced, .25y pays for its internal energy and .10y pays for manufacturing consumed
internally. The inputs are the amount used in production, and the outputs are the
amounts produced.

(a) If the capacity of energy production is $15 million and the capacity of manufacturing
production is $20 million, how much of each is consumed internally for capacity
production?
(b) How much energy and manufacturing must be produced to have $8 million worth of
energy and $5 million worth of manufacturing available for consumer use?

31. For the square of matrix A=

1 4 0
-1 2 2
0 0 2


Verify that A (adj A)= A I3= (adj A) A.

32. Show that the matrix A=

1 3 -1
2 4 0
1 1 5

is non-singular and hence find its inverse.

60
33. Given the matrix A=

0 1 2
1 2 3
3 1 1

a. Compute A-1
b. Verify that (A’)-1= (A-1)’

34. Explain special types of matrices which play an important role in matrix theory with
example.

35. Use Cramer’s rule to solve the system:

3x-2y=4
2x+y=-3

UNIT III

I MULTIPLE CHOICE QUESTIONS:

In each of Questions 1-4, a function is given. Choose the alternative that is the derivative, dy/dx,
of the function:

1. √(4x+1)(1-x)3
A. -12(1-x)2
B. (1-x)2(1+8x)
C. (1-x2)(1-16x)
D. 3(1-x)2(4x+1)

2. y = (2-x)/(3x+1)
A. -7/(3x+1)2
B. -9/(3x+1)2
C. (6x-5)/(3x+1)2
D. (7-6x)/(3x+1)2

3. y = 2/(5x+1)3
A. -30/(5x+1)2
B. -30(5x+1)-4
C. -6/(5x+1)4
D. -10(5x+1)-4/3/3

4. y = 3x2/3 – 4x1/2 – 2
A. 2x1/3-2x-1/2
B. 3x-1/3-2x-1/2

61
 C. 9x5/3/5-8x3/2
D. 2x-1/3-2x-1/2

5. If A = f + 2g, then A’(3) =

A. -2
B. 2
C. 7
D. 8

6. If B = f * g, then B’(2) =
A. -20
B. -7
C. -6
D. -1

7. If H(x) = underroot f(x), then H’(3) =

A. ¼
B. 1/2underroot 10
C. 2
D. 2/ underroot 10

8. If M(x) = f(g(x)), then M’(1) =

A. -12
B. -6
C. 4
D. 12

9. If P(x)=f(x3), then P’(1) =

A. 2
B. 6
C. 8
D. 12

In questions 10-13, find y’

10. y = underroot (x2+2x-1)

A. (x+1)/y
B. 4y(x+1)
C. ½ underroot (x2+2x-1)
D. None of these

62
15. y = ln(ex/ex-1)
A. x – (ex/ex-1)
B. 1/(ex-1)
C. -1/(ex-1)
D. 0

63
16. y = ln(Sec x+ Tan x)
A. Sec x
B. 1/sec x
C. Tan x + (sec2 x/ Tan x)
D. 1/ (Sec x + Tan x)

17. y = ex – e-x
A. 1
B. 2/(ex + e-x)2
C. 4/(ex + e-x)2

In each question y is a differential function of x. Choose the alternative that is the

derivative dy/dx.

18. x+ cos(x+y) = 0
A. Cos (x+y)-1
B. Cos (x+y)
C. x/ Sin (x+y)
D. (1-Sin x)/ Sin y

19. Sin x – Cos y – 2 = 0

E. –Cot x
F. –Cot y
G. Cos x/ Sin y
H. -Cos y Cos x

20. 3x2 – 2xy +5y2 = 1

A. (3x+y)/(x-5y)
B. (y-3x)/(5y-x)
C. 3x+5y
D. None of these

21. If f (x) = x3 – 2x + 10, then f`(2) =?

A. 10
B. 12
C. 14
D. 16

22. If y = √x + 1, then y` = ?
A. 2√x+1
B. 2/√x+1
C. 1/√x+1
D. 1/2√x+1

64
23. The derivative of sec (2x) is ?
A. sec(x) tan(x)
B. sec(2x) tan(2x)
C. 2sec(2x) tan(2x)
D. 4sec(2x) tan(2x)

24. If y= sin (2π), then dy/dx =?

A. 0
B. Π
C. 2π
D. Cos (2π)

25. d/dx [cot(x2 +1)] = ?

A. 2x cosec2 (x2+1)
B. -2xcosec2 (x2+1)
C. Sec2 (x2+1)
D. –Sec2 (x2+1)

26. The position of a car is given by

X = 2t3 – 24 ln(t+1) What is the acceleration for t=5?
A. 128
B. 134
C. 140
D. 146

27. Suppose f (c) exists and f′ (c) = 0, then the point x = c of the function f (x) is called
A. Minima
B. Maxima
C. Tangent point
D. Critical point

28. What the second derivative of -x3?

A. -3x
B. 3x
C. -6x
D. 6x

29. d/dx(e⁻x) =?
A. ex
B. –ex
C. e⁻x
D. -e⁻x

30. d/dx (tan⁻1(2x)) =?

A. sec⁻1 (2x)
B. 2sec⁻1 (2x)

65
 C. 1/1+2x2
D. 1/1+4x2

31. If
A. 2x2
B. √x
C. 0
D. 1

32. The function f(x) = x3 - 6x2 + 9x + 25 has

A. a maxima at x= 1 and a minima at x = 3
B. a maxima at x = 3 and a minima at x = 1
C. no maxima, but a minima at x = 1
D. a maxima at x = 1, but no minima

33. The value of a = is

A. >0
B. 2
C. 0 - 1 + 100 - 10 + 1
D. Undefined

34. The interval in which the Lagrange's theorem is applicable for the function f(x) = 1/x is
A. [-3, 3]
B. [-2, 2]
C. [2, 3]
D. [-1, 1]

35. If f(x) = | x | , then for interval [-1, 1] ,f(x)

A. satisied all the conditions of Rolle's Theorem
B. satisfied all the conditions of Mean Value Theorem
C. does not satisied the -conditions of Mean Value Theorem
D. None of these

Ans. (1)(C), (2)(A), (3)(B), (4)(D), (5)(B), (6)(B), (7)(D), (8)(A), (9)(B), (10)(A), (11)(D),
(12)(B), (13)(A), (14)(C), (15)( C), (16)(A), (17)(D), (18)(A), (19)(D), (20)(B), (21)(A),
(22)(D), (23)(C), (24)(A), (25)(B), (26)(D), (27)(D), (28)(C), (29)(D), (30)(D), (31)(A),
(32)(A), (33)(A), (34)(C), (35)(C)

II SHORT ANSWER TYPE QUESTIONS:

1. If u = e xyz, show that

 3u
xyz
(
= 1 + 3xyz + x 2 y 2 z 2 e xyz )
66
2. If x = r cos, y = r sin 
2
 2r  2r   2r 
Pr ove that . = 
x 2 y 2  xy 
3. Verify Euler’s theorem for
u=ax2 + 2hxy + by2
1 1
x4 + y4
4. If u = sin-1 1 1
x6 + y6
 2u  2u 2  u
2
Evaluate x + 2 xy
2
+y
x 2 xy y 2
5. If x =  sin  , y =  sin  , z = z
(u, y, z )
Show that =
( x, y, z )
6. If x = eucos, y = eu sin , show that
(u, )
= e − 2u
( x, y)

7. If u, v are functions of x and y then show that

(u, ) ( x, y)
=1
( x, y) (u, )
8. Find the approximate value of
(0.98) 
1
+ (2.01) 2 + (1.94) 2 2
2

9. Expand excos y in powers of x and y as far as the terms of third degree.

10. Find the dimensions of rectangular box (without top) with a given volume so that the
material used is minimum.
11. In any ABC find the maximum value of cos A cos B cos C by Lag range’s method.
12. Find the volume of greatest rectangular parallelepiped that can be inscribed inside the
x2 y2 z 2
ellipsoid 2 + 2 + 2 = 1
a b c
13. The temp T and any pt (x, y, z) in space is T = 400 xyz2. Find highest temperature on
surface of unit sphere x2 + y2 + z2 = 1.
Evaluate  
xy( x + y)dx dy
14. over the region bounded by the line y = x and the curve y =
x2.
15. Find by double integration the area lying inside the circle r = a sin  and out side the
cardiod r=a(1 – cos).
16. Change the order of integration
a a2 − y2

  f ( x, y) dx dy
−a 0

67
17. Evaluate  s
xy − y 2 dx dy where s is a  with vertices (0,0), (10,1) and (1,1).

18. Evaluate
1 1− x 2 1− x 2 − y 2

 
0 0
 xyz dz dy dx
0

dx dy dz
19. Evaluate    ( x + y + z + 1)
R
3
where R is bounded by the planes x = 0, y = 0, z = 0 and

x+y+z=1
20. Change the order of integration in the integral
a
2 a2 − y2

  x dx dy and then evaluate it.

0 y

21. Express as a single integral

a
2 x a a2 − x2

  x dy dx + 
0 0 a
 x dy dx and evaluate it.
0
2
22. If y = ax3 + bx2 + cx + d, show that y4 = 0.
23. If ax2 + 2hxy + by2 = 0, Prove that y2 = (h2 – ab)/(hx+by)3
24. If b2x2 + a2y2 = a2b2, prove that y2 = - b4/ a2y3
25. If y(1-x) = x2, prove that (1-x)y2 – 2y1 = 2.
26. What is yn of xy = 2?
27. if y= 4cos2(2x3), then y` =?
28. If f(x) = xπ, then f`(1)=?
29. Find out the limit of x2 – 1/x – 1 as x 1.
30. A function f is defined as
F (x) = x2 - 4x + 3/x2 -1 when x ≠1
31. Find f (3) if f ( x) = 4 x 2 .
 
32. Find f   if f ( x) = sin(2 x)
4
f ( x) − f (a)
33. Find f (3) if f ( x) = 4 x 2 by using the form f (a ) = lim
x→a x−a
of the definition of a derivative.
34. Find the equation of the line tangent to the function
f ( x) = x 3 − 0.165 x + 3.993  10 −4 at x = 0.05 .
35. Find the derivative of f ( x) = 6 .

III LONG ANSWER TYPE QUESTIONS:

1. Prove that  = e− x ( x sin y − y cos y ) is harmonic.

2. Evaluate  zdz
c
from z=0 to z = 4 + 2i along the curve c: z = t2 + i t

68
3. Verify CAUCHY’S theorem for the function – 3z2 + i z – 4
2z + 3
4. Show that the transformation w = maps the circle x2 + y2 – 4x = 0 onto the straight
z −3
line 4u + 3 = 0.
5. Find the bilinear transformation which maps
a. the points z = 1, i,-1, into the pts w = 0, 1 
b. the points z=0, -1, , into the pts w = -1, -2, i
i
6. Evaluate  sin h 5z dz
0

e2z
7. Evaluate e ( z + 1) 4 dz , where c : |z| = 3
eiz
8. Evaluate e z 3 dz , where c : |z| = 1

9. Find the region of convergence of  n !2
n =1
n

1
10. Expand f(z) = in a LAURENT SERIES for |z| < 3
z −3
2
d
11. Evaluate 
0
3 − 2 cos + sin 
2
cos 3 
12. Show that  5 − 4 cos d = 12
0

sin x 
13. Show that 
0
x
dx =
2
2z − 5
14. Find the fixed points of the Transform w =
z+4

cos h ax 
15. Prove that  cos h x dx =  a 
, |a| < 1
0 2 cos  
 2 
1 z 2dz
2 i c z 2 + 4
16. Prove that

 ze
2 zx
17. Evaluate dz
0
18. If f(z) is a regular function of z.
 2 2  2
Prove that  2 + 2  f ( z ) = 4 f ' ( z )
2

 x y 
z8 + z 4 + 2
19. Locate the singularities of
( z − 1)3 (3 z + z ) 2

69
20. Find the Laurent series of following f(z) with centre 0.
1 − cos z
(i) z-5 sin z (ii) z2 e1/z (iii)
z3
1
for the function f(z) = 2 at the isolated singularity and
21. Obtain Laurent’s series z sin hz
dz
hence evaluate  2 ; where C is the circle |z – 1| = 2
C z sin hz

22. (a) Find the inverse Laplace transform of

s
s + 4a 4
4

(b) Solve the initial value problem (IVP)

y’’ + ay’ – 2a2y = 0
y(o) = 6
y’(o) = 0

sin t 
23. (a) Using L.T. Show that  dt =
0
t 2
(b) Using convolution, find the inverse of
s2
(s 2
+ w2 )
2

t , +  t  
(c) Plot the 2 - periodic functions, given by f(t) =  and find
 − t ,   t  2
Its laplace transform.
s 2 + 2s − 3
24. (a) Find the inverse L.T. of
s ( s − 3)(s + 2)
(b) Find the L.T. of exponential function f(t) = ea+
s 2 + 2s − 3
25. (a) Find the inverse L.T. of
s ( s − 3)(s + 2)
(b) Find the L.T. of exponential function f (t ) = e at
(c) Solve the simultaneous equation
(b 2 − 3) x − 4 y = 0
x + ( D 2 + 1) y = 0
for t>0, give that
dy dx
x= y= = 0 and = 2at when t = 0
dt dt
26. f (x) is defined as under
A. f(x) = 0 for x ≤ 0
B. =1/2 – x for x > 0.
Show that lim x---0 f(x) does not exist.

27. Prove that d/dx (xx) = xx (1+logx)

70
28. Differentiate √cos x with respect to x by first principles
29. Evaluate ð 2z/ ðx ðy = ð2z/ ðy ðx. When z = x2/ x-y+1
30. Show that ð2/ ðx ðy [(x+y)ex+y] = (x+y+2)ex+y
31 Find the derivative of f ( x) = x 6 .
32 Find the derivative of f ( x) = x −6 .
33 Find the derivative of f ( x) = 10 x 6 .
34 Find the derivative of f ( x) = 3x 3 + 8 .
35 Find the derivative of f ( x) = (2 x 2 − 6)(3x 3 + 8)

UNIT IV

I MULTIPLE CHOICE QUESTIONS:

1. ∫(x2 + 2/x3 – 7) dx =?
A. X3/3 +2/x2-7
B. X3/3-2/x2-7
C. X3/3-1/x2-7x
D. X3/3-1/x2-7x+c

2. ∫sec2 5xdx =?
A. Tan x+c
B. 1/5Tan x+c
C. 1/5Tan5 x+c
D. 1/5Tan2 5x+c

3. ∫(√x- 1/√x+ 3√x)dx=?

A. 2/3x3/2 -2x1/2 + 3/4x4/3+c
B. 2/3x3/2 -2x-1/2 + 3/4x4/3+c
C. 2/3x3/2 +2x-1/2 + 3/4x4/3+c
D. 2/3x3/2 -2x-1/2 + 3/4x4/3+c

4. ∫cos √xdx =?
A. √x sin √x
B. 2√x sin √x
C. 1/√x sin √x
D. 1/2√x sin √x

5. ∫sin2 x cos xdx =?

A. 1/2 cos2 x+c
B. 1/3 cos3 x+c
C. 1/2 sin2 x+c
D. 1/3 sin3 x+c

71
9. If f is continuous on [5,2], and if F is an antiderivative of f on [5,2], where

A. 2/3
B. 5/7
C. -17/6
D. -13/6

72
11. If θ approaches zero, then limit of sin(θ)/θ is _____.
A. Cos (θ)
B. 0
C. 1
D. This is indeterminate

12. Let's say that f ''(k) = 0 @ (13, -2). What does this mean?
A. There is definitely an inflection point at that location.
B. There might be an inflection point at that location.
C. There definitely is not an inflection point at that location.
D. There's no way to tell without first knowing what the specific function is.

13. What does du equal in ∫2x(x2 + 1)5 dx?

A. 2x
B. 2u du
C. 2x dx
D. 5u4

14. Which of the following is the best integration technique to use for ∫2x(x2 + 1)5 dx?
A. The product rule.
B. The chain rule
C. The power rule
D. The substitution rule

15. What is the converted substitution form of ∫12x2 (x3 + 1)5 dx?
A. 4∫u5 du
B. ∫u5 du
C. ¼ ∫u5 du
D. This cannot be solved by the substitution method

16. What is the integral of (3t – 1)3dt?

A. (1/12)(3t – 1)4 + C
B. (1/12)(3t – 4)4 + C
C. (1/4)(3t – 1)4 + C
D. (1/4)(3t – 1)3 + C

17. Evaluate the integral of dx / (x + 2) from -6 to -10.

A. 21/2

73
 B. ½
C. ln 3
D. ln 2

18. Integrate xcos (2x2 + 7) dx.

A. (1/4)sin (2x2 + 7) + C
B. (1/4)cos (2x2 + 7) + C
C. ((sin θ) / 4(x2 + 7)) + C
D. sin (2x2 + 7) + C

19. Find the integral of 12 sin5 x cos5 x dx if the lower limit is 0 and the upper limit is π/2
A. 0.2
B. 0.333
C. 0.433
D. 0.533

20. Evaluate the integral of ln x dx, the limit are 1 and e

A. 0
B. 1
C. 2
D. 3

21. Find the area of the region bounded by y2 = 8x and y = 2x.

A. 1.22 sq. units
B. 1.33 sq. units
C. 1.44 sq. units
D. 1.55 sq. units

22. What is the integral of cos 2x esin 2x dx

A. (esin 2x / 2) + C
B. –( esin 2x / 2) + C
C. --esin 2x + C
D. esin 2x + C

23. Find the integral of [(ex – 1) / (ex + 1)] dx

A. ln (ex – 1)2 + x + C
B. ln (ex + 1) – x + C
C. ln (ex – 1) + x + C
D. ln (ex + 1)2 – x + C

24. Evaluate the integral of (2log10 e dx) / x from 1 to 10.

A. 2.0
B. 49.7
C. 3.0
D. 5.12

74
25. Evaluate the integral of cos x dx limits from π/4 to π/2.
A. 0.423
B. 0.293
C. 0.923
D. 0.329

26. What is the primary difference between using anti-differentiation when finding a definite
versus an indefinite integral?
A. Indefinite integrals don’t have defined limits.
B. Definite integrals have defined limits.
C. The constant of integration is, C.
D. There is no difference between definite and indefinite integrals.

27. What is the one thing done in anti-differentiation that has no counterpart in
differentiation?
A. Adding a constant C.
B. Subtracting a constant C.
C. Dividing the new exponent by a constant C.
D. Nothing, they are equally matched step by step.

28. What is a necessary condition for L’ Hospital’s rule to work?

A. The function must be determinate.
B. The function must be indeterminate.
C. The function must be inconsistent.
D. The function must possess at least three non-zero derivatives.

29. What is the second step of performing anti-differentaition?

A. Divide the coefficient by the old exponential value.
B. Subtract the new exponential value from the coefficient.
C. Multiply the coefficient by the new exponential value.
D. Divide the coefficient by the new exponential value.

30. ∫1/x dx =
A. Undefined because you cannot divide by 0.
B. loge(x)
C. ln(x)
D. ln(x) + C

31. If
A. 2x2
B. √x
C. 0
D. 1

32 The function f(x) = x3 - 6x2 + 9x + 25 has

A. a maxima at x= 1 and a minima at x = 3

75
 B. a maxima at x = 3 and a minima at x = 1
C. no maxima, but a minima at x = 1
D. a maxima at x = 1, but no minima

33

is equal to
A. 0
B. ∞
C. 1
D. -1

34. If f (0) = 2 and f (x) = 1 / (5-x2), then lower and upper bound of f(1) estimated by the mean value
theorem are
A. 1.9,2.2
B. 2.2,2.25
C. 2.25,2.5
D. None of these

35 Maxima and Minima occur

A. simultaneously
B. once
C. alternately
D. rarely

Ans. (1)(D), (2)(A), (3)(C), (4)(B), (5)(D), (6)(A), (7)(B), (8)(D), (9)(C), (10)(B), (11)(C), (12)
(B), (13)(C), (14)(D), (15)(A), (16)(A), (17)(D), (18)(A), (19)(A), (20)(B), (21)(B),
(22)(A), (23)(D), (24)(A), (25) (B), (26)(C), (27)(A), (28)(B), (29)(D), (30)(D), (31)(D),
(32)(B), (33)(A), (34)(B), (35)(C)

II SHORT ANSWER TYPE QUESTIONS:

Integrate the following expressions (with respect to x):

1.

2.

3.

4.

5.

76
6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

77
19.

20.

21.

22.

23. Find the area of the region bounded by the curve y = ex, the x – axis and the lines x = 0
and x = 3.
24. Find the area of the region bounded by the curve y = x2, the x – axis and the lines x = 1
and x = 2.
25. Find the area of the region bounded by the parabola y2 = 4x and the line y = x.
26. Integrate 1/4x2+4x+10
27. Integrate 1/x2+x+1
28. Evaluate ∫cot4 xdx
29. Evaluate ∫4x-3/√x2+1 dx
30. Evaluate ∫√-3x2 + x + 2 dx
( 2 x 2 − 6)
31. Find the derivative of f ( x ) = .
(3 x 3 + 8)

dy
32. Find if x 2 + y 2 = 2 xy
dx
33 Find f(x) so that f ′ (x) = 2x and f(3) = 7

34 Suppose v = t 2 + 11t − 25, and s(1) = 4. Find s(t).

35 If x 2 − xy + y 2 = 5 , find the value of y  .

III LONG ANSWER TYPE QUESTIONS:

Integrate the following expressions:

1.

78
2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

79
14. Find:

Evaluate each of the following integrals.

15.

16.

17.

18.

19. If f (a+b-x) = f(x), prove that x a∫b x f(x)dx = (a + b)/2 a∫b f(x)dx
20. Evaluate : 0∫3 |x – 2|dx, 0∫1 |2x - 1|dx
21. Evaluate 0∫3 f(x)dx, where f(x) = |x| + |x – 1| + |x – 2|
22. Use definite integral to find the area of the region bounded by the curve y = |x|, the
axis and two lines x = -2 and x = 1.
23. Show that a∫b log x/x dx = ½ log(ba) log (b/a).
24. Show that the differential equation, of which x2 – y2 = c(x2 + y2)2 is a solution, is (x3 –
3xy2) dx = (y3 – 3x2y)dy.
25. Solve the differential equation: dy/dx = 6x2 + 2x + 3.
26. Integrate 1/1-6x-9x2
27. Evaluate ∫ x/(x-1)(2x+1)dx
28. Find ∫1/x3 + 1dx
∫ 𝑥 2 𝑑𝑥
29. Evaluate (𝑥 2+1)(3𝑥 2+1)
30. Show that 2π∫0 sin8 x cos7 xdx = 0
31 Suppose a(t) = 3t 2 , s(0) = 3 and s(1) = 5. Find v(t) and s(t).
32

33 If x 2 − xy + y 2 = 5 , find the value of y  .

34. Given f ( x ) = 3x 3 − 2 x − 7 , find the second derivative, f (x) and the third derivative, f (x) .

35.

80
 QUESTION BANK

FINANCIAL ACCOUNTING

BBA-105

81
 QUESTION BANK
FINANCIAL ACCOUNTING – BBA 105
BBA - I

UNIT – I

I MULTIPLE CHOICE QUESTIONS:

1. Outstanding salary is:

A. Personal account
B. Income and expenditure account
C. Debtors account
D. Assets account

2. Which of the following is NOT normally considered to be an asset?

A. Retained earnings
B. Cash
C. Buildings
D. Accounts receivable

3. Which of the following accounts would normally have a credit balance?

A. Assets
B. Expenses
C. Liabilities
D. None of the above

4. The term "compound entry" means that the journal entry has
A. More than two accounts involved in the entry
B. A debit amount greater than the credit amount
C. A credit amount greater than the debit amount
D. Only one debit, but two credits

5. A revenue that is collected before it has been earned is called

A. Accrued revenue
B. Unrecorded revenue
C. Deferred revenue
D. Unearned

6. Which of the following statements about differences between financial and management
accounting is incorrect?
A. Management accounting information is prepared primarily for external parties
such as stockholders and creditors; financial accounting is directed at internal
users.
B. Financial accounting is aggregated; management accounting is focused on
products and departments.

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 C. Management accounting pertains to both past and future items; financial
accounting focuses primarily on past transactions and events.
D. Financial accounting is based on generally accepted accounting practices;
management accounting faces no similar constraining factors.
7. Which one of the following is the main aim of accounting?
A. To maintain ledger accounts for every asset and liability
B. To provide financial information to users of such information
C. To produce a trial balance
D. To record every financial transaction individually

8. Which is the third stage of accounting process?

A. Recording
B. Classifying
C. Summarizing

9. What type of expenditure is shown as asset in balance sheet?

A. Capital expenditure
B. Revenue expenditure
C. Deferred revenue expenditure
D. Capitalized expenditure

10. Which of the following equations properly represents a derivation of the fundamental
accounting equation?
A. Assets + liabilities = owner's equity.
B. Assets = owner's equity.
C. Cash = assets.
D. Assets - liabilities = owner's equity.

11. Financial accounting is primarily concerned with:

A. Recording of financial information relating to activities of the owners of the
business enterprise
B. Providing financial information to assist the management in decision making.
C. Reporting financial information for external users of accounting reports
D. Interpretation of financial statements

12. Which of the following is not the objective of accounting :

A. To maintain records of business
B. To ascertain profit or loss of the business
C. To depict capital, liabilities and assets of the business.
D. To provide information about the personal assets and personal liabilities of the
owners of the business.

13. Which accounting concept or convention which, in times of rising prices, tends to
understate asset values and overstate profits?
A. The going concern concept
B. The prudence concept

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 C. The realisation concept
D. The historical cost convention

14. Which of the following best describes a trial balance?

A. Shows all the entries in the books
B. Shows the financial position of a business
C. It is a special account
D. It is a list of balances on the books

15. Which accounting concept should be considered if the owner of a business takes goods
from inventory for his own personal use?
A. The prudence concept
B. The capitalisation concept
C. The money measurement concept
16. Assets are usually valued under which basis?
A. Replacement cost
B. Historical cost
C. Net realisable value

17 In India, a company can keep its books of accounts on?

A. Mercantile Basis
B. Accrual Basis
C. Cash Basis

18 The comparison of the results of one accounting period with that in the past is possible
when the following convention is followed:
A. Convention of Consistency
B. Convention of Full Disclosure
C. Convention of Materiality
D. Convention of Prudence

19 According to this convention, important items must be recorded instead of being left out
or merged with other items.
A. Convention of Consistency
B. Convention of Full Disclosure
C. Convention of Materiality
D. Convention of Prudence

20 Accounting provides information on

A. Cost and income for managers
B. Company’s tax liability for a particular year
C. Financial conditions of an institution
D. All of the above

21 The long term assets that have no physical existence but are rights that have value is
known as

84
 A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments

22 The assets that can be converted into cash within a short period (i.e. 1 year or less) are
known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments

23 Patents, Copyrights and Trademarks are

A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments

24 The following is not a type of liability

A. Short term
B. Current
C. Fixed
D. Contingent

25 The liabilities that are payable in more than a year and are not be liquidated from current
assets
A. Current liabilities
B. Fixed liabilities
C. Contingent liabilities
D. All of the above

26 The debts, which are to be repaid within a short period (year or less) are known as
A. Current liabilities
B. Fixed liabilities
C. Contingent liabilities
D. All of the above

27 The sales income (Credit and Cash) of a business during a given period is called:
A. Transactions
B. Sales returns
C. Turnover
D. Purchase returns

28 Any written evidence in support of a business transaction is called:

A. Journal
B. Ledger

85
 C. Ledger posting
D. Voucher

29 The accounts that records expenses, gains and losses are:

A. Personal accounts
B. Real accounts
C. Nominal accounts
D. None of the above

30 The Journal is:

A. A supplement to the Cash Book
B. Part of the double entry system
C. Not part of the double entry system
D. Used when other journals have been mislaid

31 The debts, which are to be repaid within a short period (year or less) are known as
A. Current liabilities
B. Fixed liabilities
C. Contingent liabilities
D. All of the above

32 The Convention of Conservatism takes into account

A. All prospective profits and prospective losses.
B. All prospective profits and leaves out prospective losses.
C. All prospective losses but leaves out prospective profit.
D. None of these.

33 Any written evidence in support of a business transaction is called:

A. Journal
B. Ledger
C. Ledger posting
D. Voucher

34 According to the money measurement concept, the following will be recorded in the
books
of account of the business:
A. Health of Managing Director of the company
B. Quality of company’s goods
C. Value of Plant & Machinery
D. Strike by employees

35 Double Entry System was introduced in–

A. America
B. Japan
C. India

86
 D. Italy

36 Patents, Copyrights and Trademarks are

A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments

37 The total number of accounting standards issued by ICAI so far is

A. 29
B. 32
C. 42
D. 36

38 The liabilities that are payable in more than a year and are not be liquidated from current
assets
A. Current liabilities
B. Fixed liabilities
C. Contingent liabilities
D. All of the above

39 The debts, which are to be repaid within a short period (year or less) are known as
A. Current liabilities
B. Fixed liabilities
C. Contingent liabilities
D. All of the above

40 The Convention of Conservatism takes into account

A. All prospective profits and prospective losses.
B. All prospective profits and leaves out prospective losses.
C. All prospective losses but leaves out prospective profit.
D. None of these.

41 Any written evidence in support of a business transaction is called:

A. Journal
B. Ledger
C. Ledger posting
D. Voucher

42 According to the money measurement concept, the following will be recorded in the
books of account of the business:
A. Health of Managing Director of the company
B. Quality of company’s goods
C. Value of Plant & Machinery
D. Strike by employees

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43 Double Entry System was introduced in-
A. America
B. Japan
C. India
D. Italy

44 The global key professional accounting body is-

A. The International Accounting Standards Board
B. The Institute of Chartered Accountants of India
C. The Financial Accounting Standards Board
D. The International Accounting Standards Committee

45 The International Accounting Standards Committee was set up in —

A. 1976
B. 1967
C. 1982
D. 2009

Ans. (1)(A), (2)(A), (3)(C), (4)(A), (5)(D), (6)(B), (7)(B), (8)(C), (9)(A), (10)(D), (11)(C),
(12)(D), (13)(D), (14)(D), (15)(D), (16)(B), (17)(C), (18)(A), (19)(C), (20)(D), (21)(C),
(22)(A), (23)(C), (24)(A), (25)(B), (26)(A), (27)(C), (28)(D), (29)(C), (30)(B), (31)(A),
(32)(C), (33)(D), (34)(C), (35)(D), (36)(C), (37)(B), (38)(B), (39)(A), (40)(C), (41)(D),
(42)(C), (43)(D), (44)(B) , (45)(B)

II Short Answer Type Questions:

1. What is the difference between book keeping and accounting?

2. What is nature of accounting? What are limitations of accounting?
3. What are different branches of accounting?
4. What are the golden rules of accounts?
5. What is contra entry?
6. What do you mean by IFRS?
7. Differentiate between concept and convention.
8. What do you mean by contingent liability?
9. Differentiate between accounts receivable and debtors.
10. What is classification of assets?
11. Write short note on:
a. Money measurement concept
b. Dual aspect concept
c. Periodic matching of cost and revenue concept
d. Business entity concept
12. What is capital?
13. What do you mean by accounting equation?
14. Write a short note on accounting standards?
15. What is the difference between outstanding income and accrued income?
16. What is convention of materiality?

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17. What is principle of full disclosure?
18. What is Financial Accounting?
19. What is AS 3?
20. What is IND AS?
21. What are different types of accounts?
22. What is accounting?
23. What are different types of liabilities?
24. Explain GAAP.
25. Elaborate different users of accounting.
26. What are the limitations of accounting?
27. Make a list of users of accounting.
28. Distinguish between assets and liabilities.
29. Give total no. of accounting standards issued by ICAI.
30. Differentiate between Cost accounting and financial accounting.
31. What is capital?
32. What do you mean by accounting equation?
33. Write a short note on accounting standards?
34. What is the difference between outstanding income and accrued income?
35. What is convention of materiality?
36. What are the advantages of accounting?
37. What do you mean by “Dual Aspect Concept” of Accounting. Explain briefly.
38. Differentiate between Cash and Mercantile systems of Accounting.
39. What is IND AS?
40. What are different types of accounts?

II Long Answer Type Questions:

1. What are the accounting concepts and conventions? Name them and explain any four
accounting concepts in detail?
2. Explain the role of IFRS in accounting.
3. What is difference between financial accounting and management accounting? What are
the different users of accounting?
4. What are various functions of accounting?
5. Karan commenced business as on January 01, 2001. Given below are his transactions for
the month of Jan. 2001. Journalize and post them in the ledger them.
Date Particulars Amount(Rs.)
Jan. 1 Business commenced with a capital 20,000
Jan. 2 Bank account opened by depositing cash 10,000
Jan. 3 Goods purchased from Rohan on credit 5,000
Jan. 5 Goods sold to Piyush on credit 4,000
Jan. 7 Goods purchased from Jyoti on credit 6,000
Jan. 8 Wages paid to employees 200
Jan. 9 Goods sold to Mayank on credit 5,000
Jan.10 Debt paid for the months of January to March 2001 3,000
Jan.10 Cheque received from Piyush 4,000
Jan.12 Paid for office expenses 1,000

89
 Jan.12 Sold Goods to Jagdish on cash 2,000
Jan.13 Cheque issued in favor of Jyoti 6,000
Jan.15 Cash withdrawn for personal use 2,000

6. From the following transaction of M/S Abhinav, write up the journal in proper form:
1998 Particulars Amount(Rs.)
Jan 1 Assets: cash in hand Rs. 2,000, cash at bank Rs. 68,000,
stock of goods Rs. 4,0000, Machinery Rs. 1,00000,
Furniture Rs. 1,0000, M/S Surya Bros. owe Rs. 15,000,
M/s Bharat Bros. owe Rs. 25,000.
Liabilities: Loan Rs. 5,0000, Sum owing to jatin Ltd. Rs.
2,0000
Jan 2 Bought goods on credit from Samuel & Co. 10,000
Jan3 Sold goods for cash to Dhiraj& Co. 4,000
Jan 4 Sold goods to Surya Bros on Credit 1,0000
Jan 5 Received from Surya Bros. in full settlement of amount 14500
due on Jan 1
Jan 6 Payment made to Jatin Bros Ltd. By cheque 9750
They allowed discount Rs. 250
Jan 9 Old furniture sold for cash 1,000
Jan 10 Bought sold for cash 7500
Jan 11 Bharat Bros. pay by cheque; Cheque deposited in Bank 25,000
Jan 11 Paid carriage on these goods 1,000
Jan 13 Bought goods of Jatin Bros. Ltd. 1,0000
Jan 13 Paid carriage on these goods 500
Jan 16 Received cheque from Surya Bros., cheque deposited in 9500
bank
Discount allowed to them 500
Jan 17 Paid cheque to Jatin Bros Ltd 1,0000
Jan 18 Bank intimates that cheque of Surya Bros has been
returned unpaid
Jan 19 Sold goods for cash to Kay Bros. 6,000
Jan 21 Cash deposited in bank 5,000
Jan 24 Paid municipal taxes in Delhi 1,000
Jan 25 Borrowed from Sachin Investment Co. Ltd for 1,0000
constructing own premises. Money deposited with bank
for the time being
Jan 26 Old newspaper sold 200
Jan 28 Paid for advertisement 1,000
Jan 31 Paid rent by cheque 1500
Paid rent for the month 3,000
Drew out of bank for private use 2500
Surya Bros. becomes insolvent, a dividend of 50 p. in a
rupee is received an old amount, written off as bad debts
in 1996 is recovered.

90
7 From the following transactions relating to Mr. Abhay Kumar. Show the effect on his
assets, liabilities and capital by using the accounting equation:

Particulars Amount
Started business with cash 1,0000
Purchased goods on credit 8,000
Plant purchased for cash 2,000
Sold goods costing 1,000
Sold goods costing for cash 2,000
Drew for personal use 500
Paid for salaries 300
Sold goods on credit to Manan costing Rs800 for 1500
Received cash from Mayank 700

8 State with reasons which of the following items should be taken as of a Capital and
Which of a revenue nature:
(i) Rs. 2,000 spent on dismantling, removing and reinstalling plant and machinery to
a more convenient site.
(ii) Rs. 600 paid for removal of stick to a new site.
(iii) Rs. 1000 paid for erection of a new machine.
(iv) Rs. 2,000 paid on repairing of the new factory.

9 Journalise the following transactions :

a) Shweta commenced business with Cash Rs. 10,00,000 and Furniture Rs.20,000
b) Paid into Bank Rs. 10,000
c) Purchased goods from Raman at a list price of Rs.10,000 at 10% trade discount.
d) Paid to Raman 7,800 by cheque in full settlement.
e) Rs.2,600 payable by Karan was written off as bad debts.
f) Goods destroyed by fire Rs.3000
g) Karan was declared as insolvent and received from his official receiver a first and
final dividend of 75 paisa in a rupee against the debt of Rs.2,600
h) Received Commission Rs.5,000
i) Goods worth Rs.30,000 distributed as free samples

10 Record the following transactions in Accounting Equation and prepare the Balance Sheet:
2013
1 May Sachin started business with cash Rs. 5,00,000, Bank balance Rs. 4,00,000,
Furniture Rs. 60,000, Stock Rs. 50,000
3 May Purchased goods in Cash Rs.20, 000
5 May Goods worth Rs.2000 destroyed by fire
8 May Withdrawn Cash for personal use Rs.4000
10 May Sold goods (costing Rs.2000) for Rs.3000
12 May Purchased Machinery Rs.40000 from Rohit
15 May Paid rent Rs.6000
18 May Received Commission Rs.6000

91
 25May Goods distributed as free samples worth Rs.4000
28May Depreciation on Furniture @10% p.a.

11 What is financial accounting? What are the features of accounting?

12 “Accounting is an art of identifying, recording, classifying, summarizing, interpreting and
communicating results thereof.” Explain the statement.
13 What are accounting standards? What are the objectives of accounting standards?
14 Differentiate between the accounting convention of materiality and full disclosure.
15 “Do not anticipate any profits but provide for all losses.” Explain the statement in light of
accounting convention by giving example.
15 Journalise the following transactions:
(a) Ram commenced business with Cash Rs. 1,00,000 and Furniture Rs.20,000
(b) Withdrew goods for personal use Rs.2000
(c) Purchased goods from Ankit at a list price of Rs.10,000. A trade discount of 10%
was allowed.
(d) Paid to Ankit 7,800 by cheque in full settlement.
(e) Goods destroyed by fire Rs.3000
(f) Rs.2,600 payable by Rajan was written off as bad debts.
(g) Rajan was declared as insolvent and received from his official receiver a first and
final dividend of 75 paisa in a rupee against the debt of Rs.2,600
(h) Paid into Bank Rs.50,000
(i) Bank collected Dividends on investment Rs.20,000
(j) Goods worth Rs.30,000 distributed as free samples.

16 Record the following transactions in Cash Book with Cash and Bank columns:
2012 Rs.
1 Jan Cash Balance 200
1 Jan Bank Balance 500
2 Jan Cash received from sale of Shares 12,000
2 Jan Paid into Bank 10,000
3 Jan Paid Amrit by cheque 2,400
3 Jan Received cheque from Amit 1,960
3 Jan Allowed him discount 40
4 Jan Paid Wages by cash 500
10 Jan Paid Amit’scheque into Bank
16 Jan Purchased goods for cash 1,200
18 Jan Paid for Stationary cash 300
19 Jan Paid Hema by cheque 750
19 Jan Discount allowed by her 50
19 Jan Withdrawn from Bank 640
20 Jan Received from cash sales 340
24 Jan Cash withdrawn for personal use 400
24 Jan Received from Anand3,600
Allowed him discount 150
25 Jan Paid into Bank 400

92
17 Write Short notes on any five:
a. IFRS
b. Objectives of Accounting Standards
c. Difference between Trade Discount and Cash Discount
d. Real Account vs. Nominal Account
e. Accrual vs. Cash Basis of Accounting
f. Golden rules of Accounting

18 From the following particulars given below, write the Sales Book of M/S Abhiranjan.
2008
Jan 1 Sold to Virmani Stores
100 Bulbs of 100 watts @Rs. 40 each. 50 Tubelights @ Rs. 25 each net.
100 Switches 5 AMP’ 2 @ Rs. 10 each.
Jan 11 Sold to from Narayan Sons
50 Electric Heaters @Rs. 40 each.10 toasters @Rs. 150 each. 15 Electric Irons
PhilipsRs. 200 each.Trade Discount 10%. Packing & Forwarding Charges Rs. 250.
Jan 17 Sold to Ram Electrical Co.
10 Desert Coolers @Rs.2500 each, Less: 20% Trade Discount
100 Toasters @Rs. 175 each, Less: 15% Trade Discount
10 Electrical Kettles @Rs. 150 each, Less: 10% Trade Discount
Sales Tax 7% Paid by us. Transport Charges Rs.500.
19 What are different types of journals?
20 Explain two column cash book. Illustrate with the help of an example.
21 Explain the imprest system of petty cash book.
22 What is petty cash book? What are different types of petty cash book?
23 Differentiate between purchase journal and sales journal.
24 Differentiate between trade discount and cash discount.
25 Explain the interrelationship of accounting with other disciplines.
26 What are GAAP? Elaborate different accounting principles issued by ICAI.
27 What are accounting standards? Elaborate the meaning with reference to examples of
certain accounting standards.
28 What are different branches of accounting? Examine limitations and objectives of
accounting.
29 Give an account of different types of assets and liabilities.
30 What are the limitations of accounting.
31 What are the objectives of accounting. Differentiate between Book Keeping and
Accounting.
32 Explain the interrelationship of accounting with other disciplines.
33 “Accounting is an art of identifying, recording, classifying, summarizing, interpreting and
communicating results thereof.” Explain the statement.
34 What are accounting standards? What are the objectives of accounting standards?
35 Explain the role of IFRS in accounting.
36 What is meant by the term, ‘Generally Accepted Accounting Principles’? Explain the
meaning and significance of the following:
• The going concern principle
• Convention of consistency

93
 • Matching principle
• Substance over form
37 According to the principles of “Double entry system”, every debit has corresponding
credit”. Explain clearly. Discuss the merits of double entry system also.
38 Explain the steps taken for convergence of Accounting Standards in India to International
Financial Reporting Standards.
39 What is accounting? What are its various branches? How does financial accounting
provide information for management accounting? Also make a distinction between these
two forms of accounting.
40 What do you understand by Accounting Standards? What purpose do these standards
serve? How does these standards help in bringing transparency and uniformity in
accounting?

UNIT – II

I Multiple Choice Questions:

1. An expenditure is treated as that of a capital nature, when:

A. It is paid for meeting normal expenses of the business.
B. It increases the quantity of fixed assets.
C. The receiver of amount is going to use it for the purchase of fixed assets.

2. Preliminary expenses are an example of:

A. Revenue expenditure
B. Deferred Revenue Expenditure
C. Capital Expenditure

3. Discount Allowed on issue of shares is an example of:

A. Capital Expenditure
B. Revenue Expenditure
C. Deferred Revenue Expenditure

4. Rs. 5000 spent on replacement of worn out part of the machine will be charged as:
A. Capital expenditure
B. Revenue Expenditure
C. Deferred Revenue Expenditure

5. Cost of goods purchased for resale is an example of:

A. Deferred Revenue Expenditure
B. Revenue Expenditure
C. Capital Expenditure

6. Depreciation of fixed assets is an example of:

A. Revenue Expenditure
B. Capital Expenditure
C. Deferred Revenue Expenditure

94
7. Repairs incurred before using a second hand car purchased recently is a:
A. Capital Expenditure
B. Revenue Expenditure
C. Deferred Revenue Expenditure

8. Income is the output of excess or deficiency of revenue over related:

A. Expired Cost
B. Unexpired Cost
C. Sunk Cost

9. The term ‘Business Income’ includes:

A. Unrealised Net Income
B. Realised Net Income
C. Revenue receipt

10. The concept of conservatism ensures that the reported profit is not:
A. Under stated
B. Overstated

11. In accounting revenue is generally treated to be realized when goods or services are:
A. Not sated to the customers
B. Not stated to the competitors
C. Furnished to the customers

12. Payment of compensation to a discharged employee is a:

A. Revenue Expenditure
B. Capital Expenditure
C. Deferred Revenue Expenditure

13. Expenditure incurred on issue of equity shares is a:

A. Revenue Expenditure
B. Capital Expenditure
C. Deferred Revenue Expenditure

14. Expenditure incurred on issue of equity shares is a:

A. Revenue Expenditure
B. Capital Expenditure
C. Deferred Revenue Expenditure

15. Money raised by issue of equity shares is a:

A. Revenue Expenditure
B. Capital Expenditure
C. Deferred Revenue Expenditure

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16. Carriage paid on goods purchased is a:
A. Revenue Expenditure
B. Capital Expenditure
C. Deferred Revenue Expenditure

17. Legal expenses incurred for abuse of trade mark is a:

A. Revenue Expenditure
B. Capital Expenditure
C. Deferred Revenue Expenditure

18. Legal expenses incurred in defending a suit for breach of contract to supply goods is a:
A. Revenue Expenditure
B. Capital Expenditure
C. Deferred Revenue Expenditure

19. Capital expenditures are the expenditures incurred for the:

A. Short term advantage of the business.
B. Long term advantage of the business.

20. The principle of recognizing revenue proportionately on the basis of work actually done
is generally followed in case of:
A. Long term contracts
B. Short term contracts

21. The process of recording financial data upto trial balance is:
A. Book keeping
B. Classifying
C. Summarising
D. Analyzing

22. Fixed assets are held by business for _____:

A. Converting into cash
B. Generating revenue
C. Resale
D. None of the above

23. Which accounting concept specifies the practice of crediting closing stock to the trading
account?
A. Cost
B. Realisation
C. Going concern
D. Matching

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24. An asset was purchased for Rs.1000000 with the down payment of Rs.200000 and bills
accepted for Rs.800000/-. What would be the effect on the total asset and total liabilities
in the balance sheet?
A. Assets increased by Rs.800000 and liabilities decreased by Rs.800000
B. Assets decreased by Rs.800000 and liabilities increased by Rs.800000
C. Assets increased by Rs.1000000 and liabilities increased by Rs.800000
D. Assets increased by Rs.800000 and liabilities increased by Rs.800000

25. In which of the following cases, accounting estimates are needed?

A. Employs benefit schemes
B. Impairment of losses
C. Inventory obsolescence
D. All of the above

26. Deewali advance given to an employee is:

A. Revenue Expenditure
B. Capital Expenditure
C. Deferred Revenue Expenditure
D. Not an Expenditure

27. Fixed assets are double the current assets and half the capital. The current assets are
Rs.3,00,000 and investments are Rs.4,00,000. Then the current liabilities recorded in
balance sheet will be:
A. 2,00,000
B. 1,00,000
C. 3,00,000
D. 4,00,000

28. Value of goods withdrawn by the proprietor for his personal use should be credited to
____.
A. Capital A/c
B. Sales A/c
C. Drawings A/c
D. Purchases A/c

29. Which of the following is incorrect?:

A. Good will intangible asset
B. Sundry debtors - current asset
C. Loose tools tangible fixed asset
D. Outstanding expenses -current asset.

30. M/s Stationery Mart will debit the purchase of stationery to _______
A. Purchases A/c
B. General Expenses A/c
C. Stationery A/c

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 D. None

31. In case a trail balance does not agree the difference is put to
A. Trading A/c
B. Profit & Loss A/c
C. Capital A/c
D. Suspense A/c

32. Rs. 5000 spent on replacement of worn out part of the machine will be charged as:
A. Capital expenditure
B. Revenue Expenditure
C. Deferred Revenue Expenditure
D. Both a & b

33. What is the order in which the accounting transactions and events are recorded in the
books
A. Journal, Subsidiary books, Profit & Loss A/c and Ledger
B. Ledger, Journal, Balance Sheet and Profit & Loss A/c
C. Journal, Ledger, Profit & Loss A/c and Balance Sheet
D. Profit & Loss A/c, Ledger and Balance Sheet

34. Depreciation of fixed assets is an example of:

A. Revenue Expenditure
B. Capital Expenditure
C. Deferred Revenue Expenditure
D. Both a and b

35. Income is the output of excess or deficiency of revenue over related:

A. Expired Cost
B. Unexpired Cost
C. Sunk Cost
D. Opportunity cost

36 In accounting revenue is generally treated to be realized when goods or services are:

A. Not stated to the customers
B. Not stated to the competitors
C. Furnished to the customers

37 Capital expenditures are the expenditures incurred for the:

A. Short term advantage of the business.
B. Long term advantage of the business.

38 The principle of recognizing revenue proportionately on the basis of work actually done
is generally followed in case of:
A. Long term contracts

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 B. Short term contracts

39 The process of recording financial data up to trial balance is:

A. Book keeping
B. Classifying
C. Summarising
D. Analyzing

40 Fixed assets are held by business for _____:

A. Converting into cash
B. Generating revenue
C. Resale
D. None of the above

41 Which accounting concept specifies the practice of crediting closing stock to the trading
account?
A. Cost
B. Realisation
C. Going concern
D. Matching

42 An asset was purchased for Rs.1000000 with the down payment of Rs.200000 and bills
accepted for Rs.800000/-. What would be the effect on the total asset and total liabilities
in the balance sheet?
A. Assets increased by Rs.800000 and liabilities decreased by Rs.800000
B. Assets decreased by Rs.800000 and liabilities increased by Rs.800000
C. Assets increased by Rs.1000000 and liabilities increased by Rs.800000
D. Assets increased by Rs.800000 and liabilities increased by Rs.800000

43 In which of the following cases, accounting estimates are needed?

A. Employs benefit schemes
B. Impairment of losses
C. Inventory obsolescence
D. All of the above

44 The purpose of final accounts is to ascertain. …

A. Profit
B. The value of assets
C. The value of liabilities
D. profit or loss and financial position

45 Final accounts are prepared…….

A. At the end of calendar year
B. on every Diwali
C. at the end of assessment year
D. at the end of accounting year

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Ans. (1)(B), (2)(B), (3)(C), (4)(B), (5)(B), (6)(A), (7)(A), (8)(A), (9)(B), (10)(B), (11)(C),
(12)(A), (13)(B), (14)(B), (15)(A), (16)(B), (17)(A), (18)(B), (19)(B), (20)(A), (21)(A),
(22)(B), (23)(D), (24)(D), (25)(D), (26)(D), (27)(B), (28)(D), (29)(D), (30)(A), (31)(D),
(32)(B), (33)(C), (34)(A), (35)(A), (36)(C), (37)(B), (38)(A), (39)(A), (40)(B), (41)(D),
(42)(D), (43)(D) , (44)(D) , (45)(D)

II Short Answer Type Questions:

1. What do you understand by Accountant’s concept of Income?

2. When is business revenue considered as accrued?
3. Differentiate between Accountant’s concept of income and Economist’s concept of
income.
4. Define Income.
5. What is convention of conservatism?
6. Explain convention of consistency.
7. What is expired cost?
8. What is imputed cost?
9. Explain Ex-ante income.
10. Explain Ex-post income.
11. What is revenue income?
12. Differentiate between capital receipts and revenue receipts.
13. Enumerate the circumstances where revenue expenditure may be taken as capital
expenditure.
14. Differentiate between capital expenditure and revenue expenditure.
15. Differentiate between revenue income and capital income.
16. What do you mean by deferred revenue expenditure?
17. What are implications of AS 26?
18. Differentiate between revenue loss and capital loss.
19. Is there any difference between revenue profit and revenue income? Elaborate.
20. Give some examples of capital expenditure.
21. State the considerations which would guide you in deciding whether any particular item
should be regarded as of a capital nature or of a revenue nature.
22. What are capital losses? Explain with the help of illustrations.
23. Why there is distinction between capital and revenue items?
24. Illustrate deferred revenue expenditure.
25. What is Economist’s concept of Income?
26. ‘Ledger is the principle book of business.’ Explain.
27. What is the meaning of an account?
28. What is the purpose of making a ledger?
29. Explain the rules of debits and credits.
30. What are Financial Statements?
31. What are implications of AS 26?
32. What are capital losses? Explain with the help of illustrations.
33. Illustrate deferred revenue expenditure.
34. ‘Ledger is the principle book of business.’ Explain.

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35. What is the meaning of an account?
36. Differentiate between Trading and Profit & Loss Account.
37. Outstanding expense and Prepaid Expense
38. Outstanding Income and Prepaid Income
39. Interest on Capital and Interest on Drawings
40. Why adjustment entries are required to be made at the time of preparing Final Accounts?
Give illustrative examples of any four such adjustment entries.

II Long Answer Type Questions:

1. What is the difference between capital expenditure and revenue expenditure?

2. Distinguish between capital receipt and revenue receipt.
3. State with reason which of the following items should be taken as of capital nature and
which of a revenue nature:
(a) Rs. 2,000 spent on dismantling, removing and reinstalling plant and machinery
plant and machinery to a more convenient site.
(b) Rs. 600 paid for removal of stock to a new site.
(c) Rs. 1000 paid for erection of a new machine.
(d) Rs. 2000 paid on repairing on repairing of the new factory.
(e) A car’s engine, rings and pistons were changed at a cost of Rs. 3000. This resulted
in improvement in mileage to 30 kms per litre of petrol. It had fallen from 15 kms
to 8 kms.
(f) A building constructed in 1990 was depreciated by the year 2000 to Rs.5000. It
was demolished and a new building was constructed at a cost of Rs. 3 Lakh
including Rs.10,000 for demolishing the old building.
4. Show by giving reasons, whether the following items of expenditure are capital or
revenue:
(a) Carriage paid on goods purchased.
(b) Wages of workmen employed for setting up new machinery.
(c) Replacement cost of a worn-out part of a plant.
(d) Repairs to furniture purchased second hand.
(e) Damages paid on account of breach of a contract to supply certain goods.
5. State the nature of expenditure, whether it is revenue or capital:
(a) A sum of Rs. 4,750 was spent on dismantling, removing and reinstalling plant,
machinery and fixture.
(b) Plant and Machinery which stood in the books at Rs. 7,500 included a machine at
a book value of Rs. 1,700. This being obsolete was sold off at Rs.450 and was
replaced by a new machine which cost Rs. 2,400.
(c) The freight and cartage on the new machine amounted to Rs. 150 and the erection
cost Rs. 275.
(d) A sum of Rs. 1,100 was spent on painting the new factory.
6. State whether the following expenditure are of capital or revenue nature:
(a) A second hand car was purchased for a sum of Rs. 20,000. A sum of Rs.5000 was
spent on its overhauling.
(b) Freight and cartage amounting to Rs. 1,000 was paid on purchase of a new plant
and a sum of Rs.200 was spent as erection charges of that plant.

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 (c) Furniture at book value of Rs. 1,500 was sold for a sum of Rs. 1,000. New
furniture of Rs. 2,000 was charged and sum of Rs.20 was spent towards cartage.
7. Classify the following as Capital expenditure or Deferred Revenue Expenditure, giving
brief reasons for each:
(a) Cost of Rs. 30,000 for dismantling, removing and reinstalling a plant by a sugar
Mill incurred in connection with the removal of works to a more suitable locality.
(b) A sum of Rs. 10,000 spent for alteration of an existing plant incorporating thereby
new devices which could affect substantial reduction in power consumption.
(c) Imported goods worth Rs.25,000 confiscated by customs authorities for non
disclosure of material facts.
8. What is Income? What are differences between revenue income and capital income?
9. What are the circumstances where revenue expenditure is to be treated as capital
expenditure?
10. What is Accountant’s concept of income? How is it different from economist’s concept
of income?
11. A purchased a machinery for a sum of Rs. 1,50,000 on January 1,2005. He expects an
annual cash flow of Rs. 50,000 at the end of each year for 5 years. The cost of capital is
15% and the present value of an annuity of Re.1 {annual payment of Re 1 for 5 years (in
all Rs. 5)} at 15% discount factor per annum is 3.3522. You are required to calculate the
value of machinery on January 1, 2005 both according to the Accountant’s and the
Economist’s concepts.
12. Compute the amount of income according to the economist’s concept for the year 2003
on the basis of data given in question no.11.
13. Distinguish between Capital Receipts and Revenue Receipts
14. When is business revenue considered as accrued? What are the exceptions to this rule?
15. What is the difference between expired cost and imputed cost?
16. Illustrate revenue and capital loss with the help of examples.
17. What is the significance of distinction between capital and revenue items? Explain with
examples.
18. Differentiate between Ex-ante income and Ex-post income.
19. What is the difference between revenue expenditure and capital expenditure?
20. Show by giving reasons, whether the following items are Capital or Revenue
expenditure:
(a) Carriage paid to goods purchased.
(b) Wages of workmen employed for setting up new machinery.
(c) Replacement cost of a worn-out part of a plant.
(d) Repairs to furniture purchased second hand.
(e) Damages paid on account of breach of a contract to supply certain goods.
21. Differentiate between capital and revenue.
22. Distinguish between expired and unexpired cost.
23. Explain the different classification of receipts.
24. What are different types of expenditures?
25. Differentiate between Deferred Revenue Expenditure and Revenue Expenditure with the
help of examples.
26. Define, explain and prepare format of journal.
27. Explain the difference between simple journal entry and compound journal entry.

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28. What is meant by Ledger Posting? Explain its importance in accounting.
29. Differentiate between Management Accounting and Cost Accounting. What are the
functions of Accounting?
30. What is the difference between Trial Balance and Balance Sheet? What are the objectives
of making both the formats?
31. Distinguish between Capital Receipts and Revenue Receipts
32. When is business revenue considered as accrued? What are the exceptions to this rule?
33. What is the difference between expired cost and imputed cost?
34. Illustrate revenue and capital loss with the help of examples.
35. What is the significance of distinction between capital and revenue items? Explain with
examples.
36 Enter the following hypothetical transaction in the appropriate type of the cash books and
post the same to the relevant ledger account:
2008
July 1 Started business with an investment of Rs. 9,000
July 2 Deposited in bank of India, Rs. 7,000
July 4 Acquired a building by issuing a cheque of Rs. 5,000
July 10 Paid the bill of the furniture by cheque Rs. 1,000
July 15 Purchased Rs. 800 of merchandise by cheque
July 18 Withdrew Rs. 100 from the bank
July 20 Sold merchandise for Rs. 1,200
July 22 Deposited Rs. 2,000 into the bank
July 25 Bought Rs. 1,000 merchandise
July 26 Sold Rs. 1,500 merchandise by crossed cheque
July 27 Paid Rs. 100 by cheque as the premium for insuring building against fire
July 28 Paid freight Rs. 50
July 30 Withdraw from bank for personal use Rs. 500
July 31 Cleared electricity bill Rs. 90
July 31 Paid to Mahesh Rs. 1,080 in full satisfaction by cheque. We owed to Mahesh Rs. 1,100 for
goods purchased.
July 31 Received from Suresh a cheque for Rs. 1,480, in full satisfaction of the debt of Rs. 1,510.

37 From the following trial balance of Shri Goyal, prepare trading and profit and loss
account for the year ending 31 Dec, 2xxx, and balance sheet as on that date after taking
into consideration the adjustments given at the end of the trial balance:

Trial Balance
As on 31 December 2xxx
Particulars Dr. (Rs.) Cr. (Rs.)
Sales 3,70,000
Purchases (adjusted) 3,49,600
Wages 10,450
Capital Account 34,250
National Insurance 150
Carriage Inwards 200

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Carriage Outwards 250
Lighting 300
Rates and Insurance (including premium of Rs. 150 p.a. upto 30june 200
2008)
Stock at 31.12.2xxx 30,625
Cash in Hand and at Bank 875
Discount earned 300
Plant and Machinery 15,000
Discount allowed 50
Debtors and Creditors 3,000 10,000
Furniture 4,000
Dividend received 150
Adjustments: -
(a) National insurance also includes employee’s contribution of Rs. 75. Wages are shown
‘Net’ after educating national insurance contribution borne by the employees.
(b) Owing to the nature of employment, some employees are housed in the building of the
business. The rental value of such portion is assessed are Rs. 250 per annum. The
benefit to the employee treated as wages and the rental as income for Shri Goyal.
(c) Depreciate plant and machinery at 15% per annum and furniture at 10% p.a.
(d) Goods worth Rs. 2,000 given by Shri Goyal to his son at cost.
(e) The manager is entitled to a commission of 20% of the net profits after charging his
commission. (Calculations may be made nearest to the multiple of a rupee).

38 The following are the extracts from the Trial Balance of a firm:

Particulars Dr.(Rs.) Cr.(Rs.)

Sundry Debtors 50,000
Provisions for Bad Debts 5,000
Provision for Discount 2,000
Bad Debts 3,000
Discount 1,000

Additional Information:
(a) Additional Bad Debts Rs. 1,000.
(b) Additional Discount Rs. 500.
(c) Create a Provision for Bad Debts @ 10% on debtors.
(d) Create a Provision for Discount @ 5% on debtors.
Pass the necessary journal entries, prepare Provision for Bad Debts Account and
Provision for Discount on Debtors Account and show how the different items will
appear in the Firm’s Final Accounts.

39 What are the objectives of providing depreciation? Compare the different methods of
providing depreciation.
40 What are the financial statements? Elaborate the Performa of final accounts.

UNIT - III

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I Multiple Choice Questions:

1. The test of objectivity and verifiability is satisfied by valuing inventory at:

A. Historical Cost
B. Current replacement price
C. Net realizable value

2. Inventory is valued at lower of the cost or net realisable value on account of the
accounting principle of:
A. Consistency
B. Conservatism
C. Realisation

3. The system which gives a continuous information regarding quantum and value of
inventory is known as:
A. Continuous Stock taking
B. Periodic Inventory
C. Perpetual inventory

4. The value of inventory will be the least in case of:

A. Aggregate or total inventory method
B. Item by item method
C. Group or category method

5. Valuation of inventory affects the determination of:

A. Income of the business
B. Financial position of the business
C. Both

6. LIFO method results in:

A. Valuation of the inventory at the latest price
B. Charging production at the latest price
C. Both (a) and (b)

7. In case of weighted average price method, the new weighted price is to be calculated:
A. At the time of every purchase
B. At the time of every issue
C. Both at the time of every issue and every purchase

8. Depreciation is the process of:

A. Apportionment of the cost of the asset over its useful life
B. Valuation of assets
C. Maintenance of asset in a state of efficiency

9. The profit on depreciation policy is transferred to:

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 A. Depreciation reserve account
B. Profit and Loss Account
C. Asset account

10. In case of Annuity Method, the amount of depreciation is:

A. Increasing every year
B. Fixed for all the year
C. Decreasing every year

11. For providing depreciation on leasehold property, the appropriate method of depreciation
is:
A. Replacement Method
B. Revaluation Method
C. Fixed Installment Method

12. Depletion Method of depreciation is used in:

A. Cattle, Loose tools etc
B. Mines, Quarries etc
C. Machinery, Building, Furniture etc

13. The interest lost on the acquisition of an asset is taken into account in calculating
depreciation in:
A. Depletion Method
B. Annuity Method
C. Diminishing Balance Method

14. In this method depreciation is charged on the cost of asset every year:
A. Straight Line Method
B. Written Down value Method
C. Sum of Years digit method

15. As 6 revised is an accounting standard for:

A. Inventory Valuation
B. Depreciation Accounting
C. Revenue recognition

16. These reserves are created out of revenue profits of the business for a specific purpose:
A. Specific Reserves
B. General Reserves
C. Capital Reserves

17. These are the reserves created only to strengthen the financial position or the business
and to keep the funds available for any future contingency or expenditure that may be
required:
A. Specific Reserves
B. General Reserves

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 C. Capital Reserves

18. These reserves are created out of capital profits:

A. Specific Reserves
B. General Reserves
C. Capital Reserves

19. These reserves are not shown in the balance sheet:

A. Specific Reserves
B. Capital Reserves
C. Secret reserves

20. A reserve is created but its identity is merged with some other account or group of
accounts so that the existence of the reserve is not known:
A. Capital reserves
B. Secret Reserves
C. Undisclosed Reserves

21. The value of asset can be reduced to zero under this method ____
A. Straight line method
B. Written down value method
C. Annuity method
D. Depreciation fund method
22. Provision for depreciation account appears on the _____
A. Asset side
B. Liability side
C. P & L account debit side
D. P & L account credit side

23. If the asset is sold, the provision for depreciation relating to the asset sold is transferred
to:
A. Asset account
B. Liability account
C. P & L account
D. Trading account

24. Depreciation is charged on___

A. Continuous basis
B. Temporary basis
C. Daily basis
D. Monthly basis

25. Loss of usefulness occasioned by improved production methods is known as____

A. Physical deterioration
B. Obsolescence
C. Disuse

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 D. Inadequacy

26. Depreciation applies to___

A. Current assets
B. Wasting assets
C. Intangible assets
D. Fixed assets

27. Depletion applies to____

A. Current assets.
B. Wasting assets
C. Intangible assets
D. Fixed assets

28. Income tax authorities recognize this method ___

A. Straight line method .
B. Written down value method.
C. Annuity method.
D. Depreciation fund method.

29. Amortization applies to____

A. Current assets.
B. Wasting assets.
C. Intangible assets.
D. Fixed assets.

30. Mines quarries oilfields and forest are example of

A. Fixed assets.
B. Current assets.
C. . Wasting assets.
D. Intangible assets.

31. Cost of fixed asset minus accumulated depreciation expenses of the fixed asset:
A. Book value of a fixed asset
B. Market value of a fixed asset
C. Historical cost of a fixed asset
D. Recoverable amount of a fixed asset

32. The estimate about useful life of a fixed asset:

A. Can never be changed
B. Can be changed

33. XYZ has imported a machine from abroad. Which of the following is not the element of a
machine’s cost?
A. Purchase price of machine
B. Import duty
C. Dismantling charges
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 D. Refundable Tax

34. Which of the following fixed asset is not depreciated in ordinary circumstances:
A. Plant and Machinery
B. Building
C. Land
D. Equipment

35. In calculation of depreciation, all of the following items are actually estimates except:
A. Useful Life
B. Residual Value
C. Historical Cost
D. Salvage Value

36. Depletion applies to____

A. Current assets.
B. Wasting assets
C. Intangible assets
D. Fixed assets

37. Income tax authorities recognize this method ___

A. Straight line method.
B. Written down value method.
C. Annuity method.
D. Depreciation fund method.

38. Amortization applies to____

A. Current assets.
B. Wasting assets.
C. Intangible assets.
D. Fixed assets.

39. Mines quarries oilfields and forest are example of

A. Fixed assets.
B. Current assets.
C. Wasting assets.
D. Intangible assets.

40. In depreciation calculation the life of an asset is:

A. A certain figure
B. An estimate
C. A predetermined figure for all fixed assets

41. Depreciable amount plus residual value of a fixed asset:

A. Depreciation expenses

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 B. Accumulated depreciation
C. Cost of the fixed asset
D. Future economic benefits of a fixed asset

42. Cost of fixed asset minus accumulated depreciation expenses of the fixed asset:
A. Book value of a fixed asset
B. Market value of a fixed asset
C. Historical cost of a fixed asset
D. Recoverable amount of a fixed asset

43. The estimate about useful life of a fixed asset:

A. Can never be changed
B. Can be changed

44. XYZ has imported a machine from abroad. Which of the following is not the element of a
machine’s cost?
A. Purchase price of machine
B. Import duty
C. Dismantling charges
D. Refundable Tax

45. Which of the following fixed asset is not depreciated in ordinary circumstances:
A. Plant and Machinery
B. Building
C. Land
D. Equipment

Ans. (1)(A), (2)(B), (3)(C), (4)(B), (5)(C), (6)(B), (7)(A), (8)(A), (9)(A), (10)(B), (11)(C),
(12)(B), (13)(B), (14)(A), (15)(B), (16)(A), (17)(B), (18)(C), (19)(C), (20)(C), (21)(B),
(22)(A), (23)(B), (24)(A), (25)(A), (26)(B), (27)(D), (28)(B), (29)(C), (30)(C), (31)(A),
(32)(B), (33)(D), (34)(C), (35)(C), (36)(D), (37)(B), (38)(C), (39)(C), (40)(B), (41)(C),
(42)(A), (43)(B), (44)(D), (45)(C)

II. Short Answer Type Questions:

1. What is Depreciation?
2. What are the causes of depreciation?
3. What are different methods of depreciation?
4. Differentiate between straight line method and written down value method.
5. Briefly explain depreciation fund?
6. Explain amortization with example.
7. What is the importance of charging depreciation?
8. What factors should be kept in mind while charging depreciation?
9. Explain AS 6 (Revised).
10. Explain the term FIFO method of stock valuation.
11. Explain the term Weighted Average method of inventory.

110
12. Explain the term LIFO method of stock valuation.
13. State the salient features of AS 2 regarding inventory valuation.
14. Compare LIFO and FIFO methods of inventory valuation.
15. Discuss the different methods of inventory valuation with suitable examples.
16. Define “Inventory”. Why proper valuation of inventory is important?
17. What is periodic inventory system?
18. Explain perpetual inventory system.
19. Define net realisable value.
20. Explain accounting standard for inventory valuation.
21. Explain accounting standard for depreciation accounting.
22. What is inventory valuation?
23. What is depreciation accounting?
24. What is the difference between provisions and reserves?
25. What are different types of reserves?
26. State briefly the need for providing depreciation.
27. Explain basic factors affecting the amount of depreciation.
28. Distinguish between SLM and WDV.
29. Differentiate between provision and reserve.
30. What are the effects of Depreciation on profit and loss account and balance sheet?
31. What is the difference between provisions and reserves?
32. What are different types of reserves?
33. State briefly the need for providing depreciation.
34. Explain basic factors affecting the amount of depreciation.
35. Distinguish between SLM and WDV.
36. Explain Human Resource Accounting.
37. What is Green accounting?
38. Define Inflation Accounting.
39. Explain Social Responsibility Accounting.
40. Elaborate Price Level Accounting.

III. Long Answer Type Questions:

1. Explain the need and significance of Depreciation.

2. What factors should be considered for determining the amount of Depreciation?
3. Distinguish between SLM and DBM of providing depreciation. Which one of the two
methods would you recommend to provide depreciation on plant and machinery?
4. Explain circumstances under which different methods of depreciation can be employed.
5. Write short note on AS 6 (Revised).
6. Explain elaborately depreciation fund.
7. What is depreciation? Discuss the merits and demerits of Sinking Fund Method of
depreciation.
8. From the following data, calculate the value of inventory on 31 Jan 2012 by: (i) LIFO
and (ii) FIFO methods:
2010
1st Jan Opening Stock 200 pieces @ Rs. 2 each
th
4 Jan Purchases 100 pieces @ Rs. 2.20 each

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 10th Jan Purchases 150 pieces @ Rs. 2.40 each
20th Jan Purchases 180 pieces @ Rs. 2.50 each
2nd Jan Issues 150 pieces
7th Jan Issues 100 pieces
12th Jan Issues 200 pieces

9. With the help of the following particulars, prepare stores account showing issued of
materials on the basis of LIFO method:
Purchases
May 3, 2004 500 Kgs @ Rs. 2 per Kg
May 18, 2004 350 Kgs @ Rs 2.10 Kg
May 25, 2004 600 Kgs @ Rs 2.20 per Kg
May 28, 2004 500 Kgs @ Rs 2.30 per Kg

Issues
May 19, 2004 600 Kgs
May 26, 2004 450 Kgs
May 29, 2004 510 Kgs
May 30, 2004 150 Kgs
Assume that there was no opening stock.

10. Purchases of a certain product during March, 2007 are set out below:
March 01 100 units @ Rs. 10
March 12 100 units @ Rs. 9.80
March 15 50 units @ Rs. 9.60
March 20 100 units @ Rs 9.40

Sales sold during the month were as follows:

March 10 80 units
March 14 100 units
March 30 90 units
No opening inventories. You are required to determine the cost of goods sold for March
under the different valuation methods: FIFO, LIFO and WAC Method.

11. The following is the record of receipt of certain materials during February, 2007:
Feb 01 Received 400 units @ Rs. 10 per unit
Feb 04 Received 300 units @ Rs. 11 per unit
Feb 16 Received 200 units @ Rs. 12 per unit
Feb 25 Received 400 units @ Rs. 13 per unit

Feb 10 Issued 200 units

Feb 15 Issued 100 units
Feb 17 Issued 200 units
Feb 20 Issued 200 units
Feb 26 Issued 100 units

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 Feb 28 Issued 200 units

Show how these transactions will appear in the stores ledger and state the amount of
inventory of Feb 28, 2007 using perpetual inventory system under:
(a) FIFO Method
(b) LIFO Method
(c) WAC Method

12. Calculate the value of the inventory of Jan 31 from the following data using (i) Periodic
Inventory system (ii) Perpetual Inventory System.
Receipts
Jan 01 Inventory in hand 200 units @ Rs.7 each
Jan 08 Purchases 1100 units @ Rs.8 each
Jan 25 Purchases 300 units @ Rs. 9 each
Jan 31 Purchases 400 units @ Rs. 10

Issue for Sale

Jan 06 100 units

Jan 09 200 units
Jan 15 400 units
Jan 27 600 units

13. From the following transactions calculate the cost of ending inventory and cost of goods
sold by applying FIFO and LIFO basis under periodic system: (5X 2 =10 marks)
Date Transactions Units Price per unit (Rs.)
Jan 1 Opening Balance 1000 20
Feb 10 Purchases 500 25
March 13 Purchases 400 22
March 20 Sold 1200 -
April 6 Sold 500 -
May 12 Purchases 400 25
June 30 Sold 500 -

14. A company started on 1 January 1999, purchased raw material during 1999 as stated
below: (5 x 2 = 10 marks)
Date Units Price per unit (Rs.)
Jan 2 800 Kg 62
Feb 26 1200 Kg 57
April 13 2500 Kg 59
July 10 3000 Kg 56
Sep 18 1500 Kg 60
Nov 29 1000 Kg 65

While preparing its final accounts on 31 December 1999, the company had 1,300 kg of raw
materials in its godown. Calculate the values of closing stock of raw materials in its godown.

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 Calculate the values of closing stock of raw materials and the cost of sales under perpetual
system according to:
a) FIFO method
b) LIFO method

15. List the various methods of valuing inventories indicating their advantages and
disadvantages.

16. From the following data calculate the Cost of Goods Sold and Value of ending Inventory
under FIFO, LIFO method of Inventory Valuation:
March 1 : Stock in hand – 400 units @Rs. 7.50 each

Purchases
March 5 600 units @ Rs.8 each
March 15 500 units @ Rs.9 each
March 25 400 units @ Rs.8.50 each
March 30 300 units @ Rs.9.50 each

Issues
March 3 300 units
March 10 500 units
March 17 400 units
March 26 500 units
March 31 200 units

17. A firm purchased a plant for Rs.I0,000 on 1/1/2007. It was charging depreciation at
10% p.a. according to the fixed installment method. At the end of 2011, the firm decided
to change the method of depreciation from the Fixed Installment Method to the
Diminishing Balance Method w.e.f. 1/1/2008. The rate of depreciation was to be12% p.a.
You are required to prepare the Plant Account for the three years ending 31st December
2011 and also show how the depreciation item would appear in the Profit and Loss
Account of the year 2011.

18. Special Services Ltd. bought a truck on January 1, 2010 for Rs. 60,000 and a sum of
Rs. 20,000 was spent for various accessories. On July, 1 2011 another vehicle was
purchased for Rs. 52,000. On July 1, 2012 the first truck was sold for Rs. 60,000. On the
same date another truck was purchased for Rs. 50,000. On July, 2010 the second vehicle
was sold for Rs. 46,000. Rate of depreciation was 10% on original cost annually on 31st
December. In 2012, the company changed the method of charging depreciation to
diminishing value method, the rate being 15%. Prepare truck account for year ending on
2010, 2011, 2012 and 2013.

19. On 1st July, 2004, a company purchased a plant for Rs.20,000. Depreciation was provided
at 10% p.a. on straight line method on 31st December every year. With effect from
1.1.2006, the company decided to change the method of depreciation to DBM @ 15%
p.a. On 1.7.2007, the plant was sold for Rs.12000. Prepare plant account from 2004 to

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 2007, if the firm decides on 1.1.2006 to charge depreciation according to DBM w.e.f.
1.7.2004 and to make adjustments for arrears of depreciation in the year 2006.

20. A firm purchased on 1st Jan, 2004 certain Machinery for Rs. 58,200 and spent Rs. 1,800
on its erection. On 1st July, 2004 additional machinery costing Rs. 20,000 was purchased.
On 1st July, 2006 the machinery purchased on 1st Jan, 2004 having become obsolete was
auctioned for Rs 28,600 and on the same date fresh machinery was purchased at a cost of
Rs 40,000.

Depreciation was provided for annually on 31st December at the rate of 10% on WDV. In
2007, however the firm changed this method of providing depreciation on the original
cost of the machinery.
Give the machinery account at the end of each year from 2004 to 2007.

21. A company provides depreciation under the SLM at the rate of 10% p.a. The balance in
the Plant & Machinery Account on 31st Dec, 2005 after writing off depreciation for the
year was Rs. 1,95,150 (total cost price of the plant was Rs 3,58,000).
During Jan 2006, new plant was purchased at the cost of Rs 29,500 and one machinery
which has cost Rs 5,500 in 2004 was sold as scrap for Rs 400.
During Jan 2007, there were additions costing Rs 18,000 and a machine which had cost
Rs 7000 in 2002 was sold for Rs 3,500.

22. On 1 Jan, 2002 Rahul & Co. purchased a machinery costing Rs 1,00,000. Its working life
is 10 years. It has been decided to depreciate it at the rate of 12% on the DBM. Show the
machinery account for first three years.

23. Differentiate between Perpetual and periodic system of inventory valuation.

24. Differentiate between FIFO and LIFO methods of inventory valuation.

26 Discuss in detail the Straight Line Method and Written Down Value Method of
depreciation. Distinguish between the two and also give situations where they are useful.
27 Name and explain different types of reserves in details.

28 What are provisions? How are they created? Give accounting treatment in case.

29 What is depreciation? Does it depend on the market value of the asset? Why is it
necessary to provide for depreciation of assets while preparing the balance sheet.

30 Differentiate between Human Resource Accounting and Green accounting.

31 What is Inflation Accounting? How is it different from Price Level Accounting. Also
give the features of Social Responsibility of Accounting.

32 Write short note on Depreciation Fund and WDV.

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 33 Elaborate Social Responsibility accounting with the help of example.

34 What are the causes and objectives of providing depreciation.

35 Differentiate between Green accounting and Inflation accounting.

36 Name and explain different types of reserves in details.

37 What are provisions? How are they created? Give accounting treatment in case.

38 What is depreciation? Does it depend on the market value of the asset? Why is it
necessary to provide for depreciation of assets while preparing the balance sheet?

39 Differentiate between Human Resource Accounting and Green accounting.

40 What is Inflation Accounting? How is it different from Price Level Accounting? Also
give the features of Social Responsibility of Accounting.

UNIT - IV

I MULTIPLE CHOICE QUESTIONS:

1. Shares which are not preference shares are called:

A. Sweat Equity shares
B. Right Issue
C. Equity shares

2. The amount of share premium received by the company is shown in the Balance Sheet
under the heading:
A. Equity and Liabilities
B. Reserves and Surplus
C. Non Current Assets

3. Return of shares voluntarily by a shareholder to the company for cancellation is called:

A. Surrender of Shares
B. Forfeiture of Shares
C. Reissue of Shares

4. A situation where a company receives applications for a less number of shares than
offered to the public for subscription is termed as:
A. Over Subscription
B. Under Subscription

5. Shares having preferential right as to dividend and repayment of capital are termed as in
A. Equity shares

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 B. Preference Shares
C. Right Issue

6. The amount paid as premium for an insurance policy taken for redemption of debentures
is credited at the end of the accounting period to:
A. Insurance Policy Account
B. Debentures Redemption Fund Account
C. Profit and Loss Appropriation Account

7. The balance sheet of the debentures sinking fund after redemption of debentures is
credited at the end of the accounting period to:
A. Profit and Loss Account
B. General Reserve
C. Debentures Account

8. Debentures issued as Collateral Security for Rs. 10,000 will be debited to:
A. Debentures Suspense Account
B. Bank Account
C. Debentures Account

9. In case debentures of Rs. 10,000 are issued at par but payable at a premium of 10% the
premium payable will be debited to:
A. Debentures Suspense Account
B. Premium on Redemption of Debentures Account
C. Loss on issue of Debentures Account

10. If debentures of the nominal value of Rs. 1,00,000 are issued at discount of 10% for net
assets worth Rs. 80,000, the balance of Rs.10,000 will be debited to:
A. Goodwill Account
B. Capital Reserve Account
C. Profit & Loss Account

11. A reserve created for redemption of debentures at a future date:

A. Debentures Sinking Fund
B. Debentures Redemption Reserve
C. Profit & Loss Appropriation Account

12. Sales are equal to:

A. Cost of Goods Sold + Profit
B. Cost of Goods Sold – Gross Profit
C. Gross Profit – Cost of Goods Sold

13. Interest of Drawings is:

A. Expenditure for the business
B. Expense for the business
C. Gain for the business

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14. Goods given as samples should be credited to:
A. Advertisement Account
B. Sales Account
C. Purchases Account

15. Outstanding Salaries are shown as:

A. An Expense
B. A Liability
C. An asset

16. Income tax paid by a sole proprietor on his business income should be:
A. Debited to the trading Account
B. Debited to the Profit and Loss Account
C. Deducted from the Capital account in the Balance Sheet

17. The Income created but not yet received is known as:
A. Unearned Income
B. Outstanding Income
C. Accrued Income

18. The income earned but not yet received:

A. Accrued income
B. Outstanding Income
C. Unearned Income

19. The closing stock in adjustment is shown in:

A. Trading Account
B. Profit and Loss Account
C. Balance Sheet
D. Both (a) and (c)

20. The opening stock is shown in:

A. Trading Account
B. Profit and Loss Account
C. Balance Sheet
D. Both (a) and (c)

21. Which of the following statement is false:

A. A company is a legal entity quite distinct from its members.
B. A company can buy its own shares
C. A shareholder is the agent of a company
D. Same person can be agent and creditor of the company

22. Which of the following are characteristics of the company:

A. Liability of the members is limited upto the face vsalue of the shares held by them

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 B. It is a voluntary association of persons
C. A company is a separate body can sue and be sued its own name
D. Perpetual Succession
E. All of the above

23. Which of the company’s capital is not shown in balance sheet:

A. Authorised Capital
B. Issued and Subscribed Capital
C. Called and Paid up Capital
D. Reserve Capital

24. Securities Premium Account is shown on the liabilities side under the head:
A. Share Capital
B. Reserves and Surplus
C. Current Liabilities

25. As per section 78 of Company’s Act amount collected as premium on securities cannot
be utilized for:
A. Issuing fully paid bonus shares to the members
B. Purchase of fixed assets
C. Writing off Preliminary Expenses
D. Buy Back of its own shares
E. Premium payable on redemption of preference shares

26. The portion of the Authorised Capital which can be called-up only on the liquidation of
the Company is called:
A. Authorised Capital
B. Reserve Capital
C. Issued Capital
D. Called up Capital

27. A Company can issue share at a discount if:

A. One year have been elapsed since the date at which the company was allowed to
commence business
B. Share issued at a discount must belong to a class of shares already issued
C. Issue must take place within two months after the date of sanction by the court or
within extended time
D. All of the above

28. A new company set up by existing companies with five year track record can issue share
at premium provided:
A. Participation of existing companies are not less than 50%
B. Prospectus contains justification for issue price
C. The issue price is made applicable to all new investors uniformly
D. All the above

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29. Which of the following cost is linked with the calculation of cost of inventories:
A. Product Cost
B. Period Cost
C. Both Product and Period Cost
D. Historical Cost

30. Under perpetual inventory system the inventory is treated as:

A. Assets
B. Liability
C. Income
D. Expense

31. Which of the following statement is false:

A. A company is a legal entity quite distinct from its members.
B. A company can buy its own shares
C. A shareholder is the agent of a company
D. Same person can be agent and creditor of the company

32. Which of the following are characteristics of the company:

A. Liability of the members is limited upto the face value of the shares held by them
B. It is a voluntary association of persons
C. A company is a separate body can sue and be sued its own name
D. Perpetual Succession
E. All of the above

33. Which of the company’s capital is not shown in balance sheet:

A. Authorised Capital
B. Issued and Subscribed Capital
C. Called and Paid up Capital
D. Reserve Capital

34. Securities Premium Account is shown on the liabilities side under the head:
A. Share Capital
B. Reserves and Surplus
C. Current Liabilities

35. As per section 78 of Company’s Act amount collected as premium on securities cannot
be utilized for:
A. Issuing fully paid bonus shares to the members
B. Purchase of fixed assets
C. Writing off Preliminary Expenses
D. Buy Back of its own shares
E. Premium payable on redemption of preference shares

36. Which of the following statement is false?

A. A company is a legal entity quite distinct from its members.

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 B. A company can buy its own shares
C. A shareholder is the agent of a company
D. Same person can be agent and creditor of the company

37. Which of the following are characteristics of the company?

A. Liability of the members is limited up to the face value of the shares held by them
B. It is a voluntary association of persons
C. A company is a separate body can sue and be sued its own name
D. Perpetual Succession
E. All of the above

38 Which of the company’s capital is not shown in balance sheet?

A. Authorized Capital
B. Issued and Subscribed Capital
C. Called and Paid up Capital
D. Reserve Capital

39 Securities Premium Account is shown on the liabilities side under the head:
A. Share Capital
B. Reserves and Surplus
C. Current Liabilities

40 As per section 78 of Company’s Act amount collected as premium on securities cannot

be utilized for:
A. Issuing fully paid bonus shares to the members
B. Purchase of fixed assets
C. Writing off Preliminary Expenses
D. Buy Back of its own shares
E. Premium payable on redemption of preference shares

41 The portion of the Authorized Capital which can be called-up only on the liquidation of
the Company is called:
A. Authorized Capital
B. Reserve Capital
C. Issued Capital
D. Called up Capital

42 A Company can issue share at a discount if:

A. One year have been elapsed since the date at which the company was allowed to
commence business
B. Share issued at a discount must belong to a class of shares already issued
C. Issue must take place within two months after the date of sanction by the court or
within extended time
D. All of the above

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43 A new company set up by existing companies with five year track record can issue share
at premium provided:
A. Participation of existing companies are not less than 50%
B. Prospectus contains justification for issue price
C. The issue price is made applicable to all new investors uniformly
D. All the above

44 Debenture holders are the:

A. Owners
B. Creditors
C. Directors
D. Suppliers

45 Debenture holder receive:

A. Fixed Interest
B. Dividend
C. Profit
D. None of them

Ans. (1)(C), (2)(B), (3)(A), (4)(B), (5)(B), (6)(B), (7)(B), (8)(A), (9)(C), (10)(A), (11)(B),
(12)(A), (13)(C), (14)(C), (15)(B), (16)(C), (17)(C), (18)(C), (19)(D), (20)(A), (21)(C),
(22)(E), (23)(D), (24)(B), (25)(B), (26)(B), (27)(D), (28)(D), (29)(A), (30)(A), (31)(C),
(32)(E), (33)(D), (34)(B), (35)(B), (36)(C), (37)(E), (38)(D), (39)(B), (40)(B), (41)(B),
(42)(D), (43)(D), (44)(B), (45)(A)

II SHORT ANSWER TYPE QUESTIONS:

1. What are Final Accounts? What purpose do they serve?

2. What is meant by Marshalling of Assets and Liabilities?
3. Differentiate between:
(a) Outstanding expense and Prepaid Expense
(b) Outstanding Income and Prepaid Income
(c) Interest on Capital and Interest on Drawings
4. Why adjustment entries are required to be made at the time of preparing Final Accounts?
Give illustrative examples of any four such adjustment entries.
5. Write short note on:
(a) Closing entries
(b) Trading Account
6. What do you understand by the term ‘grouping’ and ‘marshalling’ used in connection
with the balance sheet? Illustrate the different forms of marshalling.
7. Distinguish between Trial Balance and Balance Sheet.
8. What is a ‘share’? Discuss their different classes.
9. Explain the condition under which redeemable preference shares can be redeemed.
10. State the purposes for which money received on account of share premium can be used.
11. When can the shares be forfeited? Can forfeited shares be issued at discount? If so, to
what extent?

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12. Where would you transfer the balance left in the shares forfeited account after such
shares have been reissued?
13. Explain in brief the provisions of the Companies Act, 1956 regarding the issue of shares
at a discount.
14. Explain the meaning of the following:
(a) Reserve Capital
(b) Redemption of Preference Shares
15. What is forfeiture of shares? What are the legal requirements necessarily followed by the
board before forfeiture of shares?
16. What are the effects of the forfeiture? How can forfeiture shares be reissued?
17. Show journal entries for recording forfeiture and reissue of forfeited shares.
18. Share the legal provisions regarding utilization of securities premium.
19. Define call in advance.
20. What is buy back of shares?
21. What is a debenture?
22. What do you mean by redemption of debentures?
23. Explain debentures issued at discount.
24. What are convertible debentures?
25. Explain loss on issue of debentures.
26. What is a stock exchange?
27. What do you mean by SEBI?
28. How many stock exchanges are there?
29. Which is the oldest stock exchange?
30. Which is the largest stock exchange in terms of turnover or deals?
31. What is a debenture?
32. What do you mean by redemption of debentures?
33. Explain debentures issued at discount.
34. What are convertible debentures?
35. Explain loss on issue of debentures
36. Define call in advance.
37. What is buy back of shares?
38. What is a debenture?
39. What do you mean by redemption of debentures?
40. Explain debentures issued at discount.

III LONG ANSWER TYPE QUESTIONS:

1. Differentiate between Surrender of Shares and Forfeiture of Shares.

2. A company offered for public subscription 10,000 shares of Rs. 10 each at Rs.ll per
share. Money was payable as follows:-
Rs.3 on application
Rs.4 on allotment
Rs.4 on first and final call
Applications were received for 12,000 shares and the directors made Pro rata allotment.
A, an applicant for 120 shares, could not pay the allotment and call monies. B, a holder if

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 200 shares, failed to pay the call. All these shares were later on forfeited. Out of the
forfeited shares, 150 shares (the 'whole “of A's shares being included) were issued at Rs.9
per share. Pass journals entries for the above transactions.

3. A company offers 10,000 shares of Rs. 10 each to the public for subscription. The money
is payable as follows:
Rs. 2 on Application, Rs. 3 on Allotment and Rs.5 on First and Final Call.
The company receives applications for 12,000 shares. Applicants for 9000 shares pay the
application money in cash, while the rest pay that money through stock invests. The
shares are allotted on the pro rata basis. All allottees pay the allotment and final call
money on due dates. Pass the necessary journal entries.

4. A company offers 10,000 shares to the public. The amount payable is as follows:
On Application Rs. 3 per share, On Allotment Rs. 2 per share, On 1st Call Rs. 3 per share,
On Final Call Rs. 2 per share
Applications are received for 15,000 shares. The directors make the allotment as follows:
(i) No allotment to applicants for 3,000 shares
(ii) Rest allotted on a pro rata basis
All calls were duly made and paid except:
• A, a holder of 100 shares paid the two calls with allotment
5. The following are the extracts from the Trial Balance of a firm:-
TRIAL BALANCE as on 31stDecember 2009.
Particulars Dr. Cr.(Rs.)
(Rs.)
Sundry debtors 5000
Bad debts 3000
Discount 2000

Additional information:
(i) Create a provision for doubtful debts @ 10% on debtors.
(ii)Create a provision for discount on debtors @ 5% on debtors.
(iii)Additional discount given to the debtors Rs.1000.
You are required to pass the necessary journal entries and show how the different items
will appear in the final accounts.

6. Differentiate between a Provision and a Reserve.

7. Differentiate between Surrender of Shares and Forfeiture of Shares.
8. Enumerate SEBI’s guidelines of Bonus Issue
9. What are different terms of Issue of Debentures
10. Differentiate between Right Shares and Sweat Equity Shares.
11. Explain Schedule-VI Part-I of the Companies Act.
12. Consider the following data pertaining to Super Ltd. for the year 2013-2014:
Provision for doubtful debts as on April 1,2014 4,000
Sundry debtors as on March 31, 2014 1,50,000
Bad debts to be written off 10,000

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 If a provision equal to 5% is to be created on by debtor's balances, compute the charge
against profit and loss account for the year ended March 31, 2014.
13. Explain different categories of Debentures
14. What is a company? What are different characteristics of a company?
15. What are different kinds of companies?
16. Distinguish between Forfeiture and surrender of shares.
17. Differentiate between Private and Public Limited Company.
18. The following is the Trial Balance of Shweta Enterprises for the year ended 31st
December, 2011. You are required to prepare a Profit & Loss A/C and Balance Sheet
after taking into account the adjustments given below:

Particulars Rs. Particulars Rs.

Cash in hand 5,00 Sales 1,50,300
Cash at bank 1,200 Purchase Returns 5,000
Office Furniture 6,000 Account Payable ( 12,000
Account Receivable 15,000 Creditors) 8,000
(Debtors) 1,200 Bills Payable 1,000
Commissions 3,500 Discount Received 2,000
Bills Receivable 6,000 Dividend Received 3,500
Power and Fuel 24,000 Rent Received 27,000
Plant and Machinery 2,000 Capital
Office Expenses 1,200
Carriage Inwards 3,500
Carriage Outwards 1,700
Rent, Rates & Taxes 25,000
Leasehold Premise 30,000
Wages 7,000
Salaries 12,000
Opening Inventory 2,000
Sales Returns 60,000
Purchases 7,000
Drawings
Totals 2,08,800 2,08,800
Adjustments:
(a) Closing inventory as on 31-12-2011 is Rs. 18,000
(b) Depreciate Plant and Machinery at 10%
(c) Salaries Outstanding Rs. 1,000. Power and Fuel outstanding Rs. 2,000.
(d) Rs. 5,000 was spent on plant and machinery but wrongly included in wages.
(e) To provide for bad and doubtful debts for Rs. 1,500.
(f) Discount earned but not received Rs. 100.
(g) Commission due but not recorded or paid Rs.200.
(h) Rent received includes Rs.500 received in advance.

19. On 1 Jan, 2007, Neha Ltd. Issued 2500 10% debentures of Rs. 100 each at Rs. 95.
Holders of these debentures have an opininion to convert their holdings into 14%

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 preference shares of Rs. 100 each at a premium of Rs. 25 per share at any time within
three years.
On 31st December, 2007 holders of 500 debentures notified their intention to exercise the
option. Show the journal entries in relation to the issue and conversion of debentures in
the books of the company.

20. A company issues 15% 1,000 debentures of Rs.100 each at 10% discount redeemable
after a period of 5 years. According to the terms and conditions of issue these debentures
were redeemable at a premium of 5%. The debenture holders had also the option at the
time of redemption to get converted 20% of their holdings into equity shares of Rs. 10
each at a predetermined price of Rs. 20 per share and the balance in cash. Holders of
debentures of Rs. 80,000 preferred to get their debentures redeemed in cash only while
the rest opted for getting debentures converted into equity shares as per terms of issue.
Pass the necessary journal entries.

21. On 1 January, 2005 a limited company issued 10,000 14% debentures of Rs. 10 each
repayable after 3 years. It has been decided to establish a sinking fund for their
redemption. The annuity table shows that the annuity of Re.1 for 3 years at 10% interest
amounts to Rs. 3.3100. The investment yields 10% interest. The investment is to be made
in nearest ten rupees. Prepare necessary accounts for 3 years.

22. Give the necessary adjusting entries for the following items as on 31st March ,2000.
(a) Closing stock as on 31st March ,2000 –10,000
(b) Salary due not paid – Rs1,000
(c) Unexpired insurance on 31st March,2000 –RS 2,000
(d) Rent received in advance –RS 3,000
(e) Interest due not received –RS6,00
(f) Depreciation on fixed assets @ 33 1\3 %
(g) Bad debts to be written off Rs 5,000
(h) Create provision for bad and doubtful debts @12%
(i) Create provision for discount on debtors @ 2%
(j) Create reserve for discount on creditors @2%
(k) Allow interest on capital @ 10%
(l) charge interest on drawing @ 12%
IMFORMATION AS PER TRIAL BALANCE:
Fixed Assets RS 60,000; Debtors RS 2,05,000;Creditors RS 1,00,000; Capital RS 5,00,00
;Drawings RS 10,000
23. What are final accounts? What purpose do they serve?
24. Distinguish between Trial Balance and Balance Sheet.
25. Distinguish between Grouping and Marshalling of assets.
26. What are securities? Explain the process of issue of securities and listing of securities on
Stock exchange.
27. Explain SEBI. Enumerate the features of SEBI. How SEBI control stock exchanges?
28. Explain how the concepts of forfeiture of shares, surrender of shares and right shares
different?

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29. What is a Stock Exchange? What are the characteristics of Stock Exchange?
30. What are different stock exchanges? What are the different features of these stock
exchanges?
31. Explain SEBI. Enumerate the features of SEBI. How SEBI control stock exchanges?
32. Explain how the concepts of forfeiture of shares, surrender of shares and right shares
different?
33. What is a Stock Exchange? What are the characteristics of Stock Exchange?
34. What are different stock exchanges? What are the different features of these stock
exchanges?
35. What is a share? Discuss their different classes.
36. Explain the conditions under which redeemable preference shares can be redeemed.
37. State the purposes for which the money received on account of share premium can be
used.
38. When can the shares be forfeited? Can forfeited shares be issued at discount? If so, to
what extent?
39. Explain the conditions regarding utilization of Securities Premium.
40. Elaborate the statement “SEBI is watchdog of stock market.”

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 QUESTION BANK

BUSINESS ECONOMICS

BBA-107

128
 QUESTION BANK
BUSINESS ECONOMICS - BBA 107
BBA I

UNIT - I

I MULTIPLE CHOICE QUESTIONS:

1. Managerial economics is the application of economic theory to:

A. The problem of the firm
B. The problem of the individuals
C. The problem of economy

2. The business decisions are taken keeping in view:

A. Economic Models
B. Economic Theories
C. Economic Models and Theories

3. The approach followed in business economics is:

A. Normative Approach
B. Pragmatic Approach
C. Conservative Approach

4. The primary objective of the business economics is:

A. Social Welfare
B. Profit Maximization
C. Progress of nation

5. Time value of money results from:

A. Concept of interest
B. Concept of wages
C. Concept of money

6. In micro economics the concepts are studied related to:

A. Individual units
B. Aggregate Units
C. Both individual and aggregate units

7. Business economics is also known as:

A. Managerial Economics
B. Normative Economics
C. Both (a) & (b)

8. Equilibrium in market depends on the market forces of:

A. Market Demand
B. Market Supply

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 C. Market Demand & Market Supply

9. The types of economics include:

A. Micro Economics
B. Macro Economics
C. Both (a) and (b)

10. The nature of business economics is:

A. Normative Nature
B. Conservative Nature
C. Democratic Nature

11 The Scope of Business Economics covers:

A. Microeconomic
B. Macroeconomic

12 The scope of business economics is:

A. Narrow
B. Wide

13 The cost of next best alternative foregone is:

A. Opportunity Cost
B. Marginal Cost
C. Total Cost

14. “Earlier one receives the better it is”, it defines:

A. Opportunity Cost
B. Sunk Cost
C. Time Value of Money

15. The change in total of any quantity due to a one unit change in its determinant:
A. Incremental
B. Marginal
C. Total

16. The variability of returns on an investment:

A. Risk
B. Profit
C. Revenue

17. It includes a reward for the riskiness of investments:

A. Risk
B. Profit
C. Revenue

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18. The uninsurable risk is also known as:
A. Systematic Risk
B. Unsystematic Risk
C. Financial Risk

19. In business economics which theory is used:

A. Profit theory
B. Social Responsibility
C. Both (a) & (b)

20 Macro Economics has:

A. Wide Scope
B. Narrow Scope
C. Definite Scope

21 Economics is best defined as

A. How people make money and profits in the stock market.
B. Making choices from an unlimited supply of goods and services.
C. Making choices with unlimited wants but facing a scarcity of resources.
D. Controlling a budget for a household.

22 Economics is
A. A physical science
B. The study of scarcity and choices
C. The study of normative questions
D. The easiest course at your university.

23 The study of the choices made by individuals is part of the definition of

A. Microeconomics.
B. Positive economics.
C. Macroeconomics.
D. Normative economics.

24 The first big economic questions concernall of the following except

A. What goods and services are produced?
B. How are goods and services produced?
C. For whom are goods and services produced?
D. What determines the standard of living?

25. The need for study for economics arises because

A. The resources are scarce
B. The resources have alternative uses
C. Human wants are unlimited
D. All of the above

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26 All the economies in the world today are
A. Market economies
B. Command economies
C. Mixed economies
D. Socialist economies

27. ‘Utility’ is expressed as

A. The power of commodity to satisfy wants
B. The quality of the commodity.
C. The quantity of a commodity
D. The desire for a commodity

28. A curve drawn indicating the slope of the total utility curve closely resembles the
A. Demand curve
B. Supply curve
C. Average utility curve
D. Marginal revenue curve

29. The budget line of a given consumer shifted outward. This means
A. The indifference curve tangent to a new budget line lies everywhere above the
previous indifference curve
B. The consumer’s real income has increased
C. A consumer is better off
D. All of the above

30. The production possibility curve exhibits increasing marginal opportunity cost at all
points
A. Always
B. Never
C. Sometimes
D. Occasional

31. Time value of money indicates that:

A. A unit of money obtained today is worth more than a unit of money obtained in
future
B. A unit of money obtained today is worth less than a unit of money obtained in
future
C. There is no difference in the value of money obtained today and tomorrow
D. None of the above

32. Relationship between annual nominal rate of interest and annual effective rate of interest,
if frequency of compounding is greater than one:
A. Effective rate > Nominal rate
B. Effective rate < Nominal rate
C. Effective rate = Nominal rate
D. None of the above

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33. All economic questions arise because we:
A. Want more than we can get
B. Want more than we need.
C. Have an abundance of resources.
D. Have limited wants that need to be satisfied

34. Economic profit is the difference between total revenue and:

A. Interest costs of production.
B. Opportunity costs of production
C. Implicit costs of production
D. Explicit costs of production

35. Economics is best defined as:

A. How people make money and profits in the stock market
B. Making choices from an unlimited supply of goods and services
C. Making choices with unlimited wants but facing a scarcity of resources
D. Controlling a budget for a household

36. The study of the choices made by individuals is part of the definition of
A. Microeconomics.
B. Positive economics.
C. Macroeconomics.
D. Normative economics

37. Indifference curves that are convex to the origin reflect:

A. An increasing marginal rate of substitution
B. A decreasing marginal rate of substitution
C. A constant marginal rate of substitution
D. A marginal rate of substitution that first decreases, then increases

38. The need for study for economics arises because

A. The resources are scarce
B. The resources have alternative uses
C. Human wants are unlimited
D. Wants are of varying degree of importance

39. At saturation point, the consumer’s marginal utility is

A. Maximum
B. Minimum
C. Positive
D. Negative
E. Zero

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40 Economics is
A. A physical science
B. The study of scarcity and choices
C. The study of normative questions
D. The easiest course at your university

Ans. (1)(A), (2)(A), (3)(B), (4)(B), (5)(C), (6)(A), (7)(C), (8)(C), (9)(C), (10)(A), (11)(A),
(12)(A), (13)(A), (14)(C), (15)(B), (16)(A), (17)(B), (18)(A), (19)(A), (20)(A), 21(C),
(22)(B), (23)(A), (24)(D), (25)(E), (26)(C), (27)(A), (28)(A), (29)(D), (30)(A), (31)(A),
(32)(B), (33)(A), (34)(B), (35)(C), (36)(A), (37)(B), (38)(A), (39)(A), (40)(B)

II Short Answer Type Questions:

1. What is Business Economics?

2. Differentiate between Business economics and economics.
3. What are the features of macroeconomics?
4. What is marginalism?
5. Explain opportunity cost with the help of example.
6. Elaborate the nature and scope of business economics.
7. What is the concept of time value of money?
8. What are features of Micro economics?
9. What is incrementalism?
10. Give salient characteristics of business economics.
11. Distinguish between risk and uncertainty.
12. How is Business Economics related to other management sciences?
13. What are the characteristics of Macro Economics?
14. What are the applications of business economics?
15. What is the scope of business economics?
16. Explain discounting principle.
17. Give points of difference between incrementalism and marginalism.
18. What is the nature of economics?
19. Explain significance of business economics.
20. What is market equilibrium?
21. Explain the concept of risk, return and profit.
22. What is economics?
23. What is the contribution of business economics?
24. Explain the concept of normative economics.
25. What is marginalism?
26. What is Opportunity cost
27. What is Risk and uncertainty
28. What is Equi- marginal rule
29. What is Limitation of managerial economics
30. What do you mean by contribution analysis?
31. Define the concept of opportunity cost. What are its implications in business decisions?
32. Write short note on Incremental concept.
33. Explain the concept of opportunity costs in regard to making economic decisions.

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34. What are the market forces? Explain in brief.
35. Is profit same as return?
36. Define the concept of opportunity cost. What are its implications in business decisions?
37. Is managerial economics prescriptive in nature?
38. Explain how Managerial economics is different from Micro Economics
39. Write short note on Incremental concept.
40. Differentiate between normative and positive approach.

II Long Answer Type Questions:

1. Write a short note on nature of business economics.

2. What are different applications of business economics in economics?
3. Define and differentiate between economics and business economics
4. Explain the concept of return and profit.
5. What is time value of money? Explain the importance of time value of money.
6. Distinguish between marginalism and incrementalism.
7. Elaborate differences between micro economics and macroeconomics.
8. Explain the concept of equilibrium attained by market forces.
9. Explain with the help of example concept of opportunity cost.
10. Explain scope of business economics.
11. What is Business Economics? How is Business Economics related to other management
sciences?
12. Explain the interdependence of micro and macroeconomics.
13. What is difference between normative and positive approach.
14. “Business economics is perspective rather than descriptive in character.” Discuss.
15. Explain the significance and features of business economics.
16. What role does the business economist play in business?
17. Explain the various functions of a business economist.
18. Define business economics and discuss its nature and scope. How does the study of
business economics help business manager in decision making?
19. Define and differentiate between economics and business economics.
20. Define microeconomics and business economics.
21. Define opportunity cost, marginal cost and incremental cost.
22. Show determination of equilibrium price with the use of market forces.
23. Write short note on each of the following:
(a) Opportunity Cost
(b) Risk and Return
24. Explain briefly each of the following:
(a) Time Value of Money
(b) Marginalism and Incrementalism
(c) Opportunity Cost
25. Show determination of equilibrium price with the use of market forces.
26. Critically evaluate how far the statement given below is a correct description of the
subject-matter of managerial economics: “The objective of managerial economics is to
provide framework for analyzing business decisions. Instead of presenting detailed list of

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 rules for specific decision making…managerial economics addresses the larger economic
forces that shape day to day decision making.”
27. “Managerial economics is prescriptive rather than descriptive in character.” Discuss.
28. Distinguish between incremental concept and marginal concept? What is the role of
marginal analysis in managerial economics? When can the decision by an entrepreneur be
considered valid according to incremental principle?
29. “Managerial economics bridges the gap between abstract theory & business practice. It
uses tools of economics analysis in classifying problem, in organizing & evaluating
information and in comparing alternative courses of action.” Outline the nature & scope
of managerial economics in the light of this statement.
30. Compare Cardinal and Ordinal Approaches to consumer behavior. Which of the two
approaches enables us to bifurcate price effect and how.
31. Critically evaluate how far the statement given below is a correct description of the
subject-matter of managerial economics: “The objective of business economics is to
provide framework for analyzing business decisions. Instead of presenting detailed list of
rules for specific decision making…business economics addresses the larger economic
forces that shape day to day decision making.”
32. Business economics attempts to integrate economic theory with business practice for
facilitating decision-making and forward planning by management. Explain and
Comment.
33. “Business economics is prescriptive rather than descriptive in character.” Discuss.
34. “Business economics is predominantly micro economic theory.” Discuss and point out
the contribution of statistics to business economics.
35. What do you understand by opportunity cost? Give suitable examples to illustrate the use
of this concept in the context of managerial decisions relating to (a) production, (b)
finance, and (c) marketing. Can opportunity costs ever be zero?
36. Distinguish between incremental concept and marginal concept? What is the role of
marginal analysis in managerial economics?
37. While Economics is the main subject studied under managerial economics, which other
disciplines are useful in the study of managerial economics.” Explain the relationship of
managerial economics with other disciplines.
38. “Managerial economics bridges the gap between economic theory and business practice.”
Explain with example.
39. What do you understand by opportunity cost? Give suitable examples to illustrate the use
of this concept in the context of managerial decisions relating to (a) production,(b)
finance, and (c) marketing.
40. “Managerial economics is prescriptive rather than descriptive in character.” Discuss.

UNIT - II

I MULTIPLE CHOICE QUESTIONS:

1. Law of Demand states that the relationship between price and demand is:
A. Inverse
B. Direct
C. Not defined

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2. Law of Diminishing Marginal Utility states that as we consume more and more units of a
commodity, the utility derived from each successive units goes on:
A. Increasing
B. Diminishing
C. Remains same

3. If the price of coffee falls, the impact on demand curve of tea would be that it has:
A. Leftward shift
B. Rightward shift
C. Expansion in demand curve
D. Contraction in demand curve

4. If the price of car falls, the impact on demand curve of petrol would be that it:
A. Leftward shift
B. Rightward shift
C. Expansion in demand curve
D. Contraction in demand curve

5. The shift in demand curve is due to change in:

A. Income of consumer
B. Price
C. Price of related goods
D. Both (a) and (c)

6. Budget Line shows bundle of commodities giving:

A. Equal satisfaction to the consumer
B. More satisfaction to the consumer
C. Less satisfaction to the consumer

7. The curve showing income elasticity of demand is:

A. Production Possibility Curve
B. Engel Curve
C. Indifference Curve

8. The concept of consumer equilibirium comes under:

A. Ordinal Utility Approach
B. Cardinal Utility Approach
C. Keynesian Approach

9. The slope of Budget Line the ratio of:

A. Prices of commodities
B. Change in quantity of good Y to change in quantity of good X
C. Income of consumer to price of commodity

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10. The cost of next best alternative forgone is:
A. Sunk Cost
B. Opportunity Cost
C. Explicit Cost

11. When the utility can be measured, it is:

A. Cardinal Utility
B. Ordinal Utility
C. Utility Concept

12. When the utility cannot be measured, it is:

A. Cardinal Utility
B. Ordinal Utility
C. Utility Concept

13. The convex shape of Indifference Curve is due to:

A. Diminishing MRS
B. Increasing MRS
C. Constant MRS

14. When the consumer wants to purchase more of both the goods, it is known as:
A. Monotonicity of preferences
B. Rationality
C. Ordinality

15. A situation where the consumer maximizes his satisfaction , given income and market
prices:
A. Producer Equilibirium
B. Consumer Equilibirium
C. Equilibirium of market forces

16. Assumptions of the Indifference Curve theory are:

A. Rationality
B. Ordinality
C. Diminishing MRS
D. All of the above

17. The demand of a commodity which is backed by purchasing power and willingness to
spend money:
A. Effective Demand
B. Budget Line
C. Indifference Curve

18. The goods having income elasticity greater than 1:

A. Luxury Goods

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 B. Necessity Goods
C. Inferior Goods

19. The goods having income elasticity equal to zero:

A. Luxury Goods
B. Necessity Goods
C. Inferior Goods

20. The Geometric method of measuring elasticity of demand is also known as:
A. Point Method
B. Outlay Method
C. Proportionate Method

21 Consumer incomes increase. Which one of the following is most likely in the market for
automobiles?
A. Price rises, quantity falls.
B. Both price and quantity fall.
C. Both price and quantity rise.
D. Price falls, quantity rises.

22 For the law of demand, the assumption of ceteris paribus means that all variables are held
constant except:
A. Consumer tastes and preferences.
B. Consumer income.
C. Prices of related goods.
D. Own price and quantity demanded.
E. The number of consumers in the market.

23 The slope of the demand curve for butter shows that an increase in the price of butter
leads to
A. A decline in the amount of butter available
B. An increase in demand for margarine
C. An expected decline in the price of butter
D. A decline in the price of margarine

24 Assume the demand curve for compact discs slopes downwards, and the supply curve
slopes upwards. If the price of CD players decreases, then:
A. The equilibrium price of compact discs will fall
B. The equilibrium price of compact discs will rise
C. The equilibrium price of compact discs will stay the same
D. None of the above are correct

25 The value of price elasticity of demand:

A. Depends on the units that are used to measure quantities
B. Has the same value as the slope of the demand curve
C. Depends on the units that are used to measure prices

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 D. Does not depend on the units in which quantity and price are measured.
26 Price elasticity at a given price is not affected by
A. The price of complements.
B. The price of substitutes.
C. The consumer’s income.
D. A change in tastes.
E. A change in supply.

27. The arc elasticity formula is used to estimate elasticity when

A. The product is thought to be inelastic.
B. The product is thought to be elastic.
C. The demand function is known.
D. There are two observations of price and quantity.
E. None of the above.

28. The price elasticity of demand is the same thing as the negative of the
A. Slope.
B. Reciprocal of slope.
C. The first derivative of the demand function.
D. Reciprocal of slope times the ratio of price to quantity.
E. All of the above.

29. An elasticity coefficient of -1 means that

A. The demand curve is perfectly inelastic.
B. The demand curve is perfectly elastic.
C. The relative changes in price and quantity are equal.
D. Expenditures on the good would increase if prices were reduced.
E. Expenditures on the good would decrease if prices

30. The term "market" refers to

A. Trading arrangements that have been approved by the government.
B. Locations where buyers and sellers physically meet.
C. Any arrangement that enables buyers and sellers to get information and trade
with One another.
D. Physical structures only.

31. Indifference curves that are convex to the origin reflect:

A. An increasing marginal rate of substitution
B. A decreasing marginal rate of substitution
C. A constant marginal rate of substitution
D. A marginal rate of substitution that first decreases, then increases

32. Which of the following is right statement out of the following?

A. Demand is inelastic if e = 0 or < 1 – quantity is relatively unresponsive
B. Demand is elastic if e > 1 -- quantity is relatively responsive
C. Demand has unitary elasticity if e =1
D. All above

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33. The budget line of a given consumer shifted outward. This means:
A. The indifference curve tangent to a new budget line lies everywhere above the
previous indifference curve
B. The consumer’s real income has increased
C. A consumer is better off
D. All of the above

34. Any two points on a given indifference curve represent:

A. Two ways of consuming the same amount of each good contained in the
consumption basket.
B. Combinations of goods a consumer can purchase which give him the same total
amount of utility
C. The optimal points of consumption
D. The consumer’s lack of preference among the goods he purchases

35. Upward shift in the demand curve is due to -------------in the price of the commodity
A. Increase
B. Decrease
C. No change
D. Other factors

36. Which amongst the following is not an assumption of Indifference curve analysis?
A. The scale of preference remains the same throughout the analysis.
B. The consumer has a given and constant amount of money income to spend on the
goods.
C. Prices of the goods in the market are given and constant.
D. All the units of the goods are heterogeneous.

37. ___________ refers to a situation in which change in demand is more than the
proportionate change in price.
A. Unitary elastic demand
B. Perfectly elastic demand
C. Less elastic demand
D. More elastic demand

38. Percentage method of measuring price elasticity of demand was propounded by

A. Dr. Marshall
B. Dr. Flux
C. Dalton
D. Watson and lerner

39. Which of the following is a condition of consumer’s equilibrium in indifference curve

analysis?
A. Indifference curve should be concave to the point of origin
B. Indifference curve should be concave to the point of intersection
C. Indifference curve should be convex to the point of origin

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 D. Indifference curve should be convex to the point of intersection

40. Income effect is negative in case of ________ goods

A. Normal Goods
B. Inferior goods
C. Substitute goods
D. Complementary goods

Ans. (1)(A), (2)(B), (3)(A), (4)(B), (5)(D), (6)(A), (7)(B), (8)(B), (9)(A), (10)(B), (11)(A),
(12)(B), (13)(A), (14)(A), (15)(B), (16)(D), (17)(A), (18)(A), (19)(B), (20)(A), (21)(C),
(22)(B), (23)(D), (24)(D), (25)(B), (26)(E), (27)(D), (28)(D), (29)(C), (30)(C), (31)(B),
(32)(D), (33)(D), (34)(B), (35)(A), (36)(D), (37)(D), (38)(B), (39)(C), (40)(B)

II Short Answer Type Questions:

1. Define MU.
2. Explain consumer Equilibrium with the help of utility schedule and diagram.
3. Write a short note on Ordinal Utility.
4. Explain briefly MRS.
5. What is an indifference curve?
6. Explain Budget line with help of diagram.
7. Why are indifference curve convex to the origin?
8. Why are indifference curve downward sloping?
9. Explain Cardinal Utility.
10. What is inferior good?
11. Define Demand.
12. Differentiate between substitute and complementary goods.
13. Explain contraction in demand curve diagrammatically.
14. What is expansion demand curve? Illustrate
15. What is the difference between increase and decrease in demand? Show
diagrammatically.
16. Explain elasticity of demand.
17. Write a short note on advertising elasticity of demand.
18. What is elasticity of price expectations?
19. What are determinants of income elasticity of demand?
20. Define demand forecasting.
21. Explain criteria for good demand forecasting.
22. Give the scope of demand forecasting.
23. Enumerate the importance of price elasticity of demand.
24. What are different degrees of price elasticity of demand?
25. Explain proportionate method of demand forecasting.
26. Arc elasticity and point elasticity
27. Price elasticity and cross – elasticity
28. Income elasticity and price elasticity
29. Shift in Demand Curve
30. Exceptions to Law of Demand.

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31. Explain the relationship between price and cross elasticity of demand.
32. Define marginal rate of substitution.
33. Differentiate between a shift in demand curve and a movement along the demand curve.
34. Explain cardinal and ordinal approaches of utility measurement for deriving consumer’s
equilibrium.
35. How is indifference curve different from indifference map?
36. What are the conditions of consumer’s equilibrium according to utility analysis?.
37. State the factors of rightward shift of demand curve. Explain any one
38. What is price effect?
39. What will be the shape of indifference curve when both the commodities are perfect
substitutes?
40. Define ‘Income elasticity of demand

III Long Answer Type Questions:

1. Explain Law of Diminishing Marginal Utility with the help of a table and diagrammatic
example.
2. What is meant by Consumer’s Equilibrium? State its condition in case of a single
commodity. Use diagram.
3. What is meant by Consumer’s Equilibrium? State its condition in case of two
commodities given by utility approach.
4. What is an indifference curve? Explain different properties of indifference curve.
5. What is Budget Line? When will it shift? What is its slope?
6. Differentiate between cardinal utility and ordinal utility.
7. Distinguish between inferior good and giffen good.
8. What will be the shape of indifference curve when both the commodities are perfect
substitutes?
9. What will be the shape of indifference curve when both the commodities are perfect
complementary to each other?
10. What is meant by consumer equilibrium? Define the property of indifference curve and
show the equilibrium of consumer with indifference curve.
11. Why does a demand curve usually slopes downward towards right?
12. What is Law of Demand? Explain giving schedule, assumptions and diagram.
13. Differentiate between Movement and Shift in demand curve.
14. What is Demand? Why Law of Demand operates?
15. Explain individual vs. market demand curve.
16. Differentiate between change in quantity demanded and change in demand.
17. What are the factors affecting individual demand? Derive the Law of Demand.
18. What is demand? What are determinants of demand function?
19. What is price elasticity of demand? What are the determinants of price elasticity of
demand?
20. Explain Cross price elasticity of demand. What are the determinants of cross elasticity of
demand? What are different types of cross price elasticity.
21. Explain Income elasticity of demand. What are the determinants of income elasticity of
demand? What are different types of cross price elasticity?
22. Explain Outlay method of measuring elasticity of demand.

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 23. Prove that on a straight-line demand curve, price elasticity of demand decreases
continuously from infinity at the price axis to zero at the quantity axis.
24. What is demand forecasting? What are the determinants of demand forecasting?
25. What are different methods of demand forecasting?
26. Why does demand curve slope downward from left to right? Under what circumstances,
it will slope upward?
27. What is the objective of demand forecasting? Explain the various methods of demand
forecasting pointing out their merits & demerits.
28. What is demand forecasting? Evaluate any two survey methods and any two statistical
methods of demand forecasting.
29. Distinguish between individual and market demand for a product. Market demand is the
main concern of business managers. Why should business managers then study individual
demand curve?
30. What do you mean by an iso-product curve? How is it different from indifference curve?
What does the slope of an iso-product curve indicate?
31. With the help of numerical example measure price elasticity of demand in the following
conditions by total expenditure method:
(i) Demand falls when price is constant.
(ii) Price falls while demand is constant.
32. What do you mean by budget line? What are the reasons of change in budget line?
33. Define and distinguish between:
(a) Arc elasticity and point elasticity
(b) Price elasticity and cross – elasticity
(c) Income elasticity and price elasticity
34. With the help of diagrams, explain the effect of following changes on the demand of a
commodity. (a) A fall in the income of its buyer. (b) A rise in price of complementary
good.(c) change in fashion.(d)change in habits of consumers.
35. What is law of demand? Explain the determination of equilibrium price and quantity
using the concept of demand and supply curves?
36. Comment on the statement “Price elasticity of demand is generally negative.”
37. Why the marginal rate of technical substitution is likely to diminish as more and more
labour is substituted for capital?
38. Distinguish between cardinal and ordinal measurement of utility.
39. What is price affect? How does a change in the price of a commodity affect the
equilibrium of the consumer?
40. Derive individual demand curve from indifference curve analysis.

UNIT - III

I MULTIPLE CHOICE QUESTIONS:

1. It is a short run law which states that as the use of a variable input increases with other
inputs fixed, the resulting addition to output will eventually decrease.
A. Law of variable Proportion

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 B. Law of Returns to scale
C. Law of diminishing marginal utility

2. It refers to a function showing maximum output that a firm can produce for every
combination of inputs.
A. Demand Function
B. Supply Function
C. Production Function

3. It is long run law which states that when all the factors are increased in the same
proportion, then output will increase but the increase may be at an increasing rate or
constant rate or decreasing rate.
A. Law of variable Proportion
B. Law of Returns to scale
C. Law of diminishing marginal utility

4. It is total quantity of goods and services produced by a firm with given inputs during a
specified period of time.
A. Total Product
B. Average Product
C. Marginal Product

5. It is a period in which firms can adjust production by changing variable factors but can
not change quantities of one or more fixed factors.
A. Short run
B. Long run

6. It is defined as the change in TP resulting from the employment of an additional unit of a

variable factor.
A. Total Product
B. Average Product
C. Marginal Product

7. It measures the productivity of the firm’s labour in terms of how much output each labour
produces on an average:
A. Total Product
B. Average Product
C. Marginal Product

8. The shape of MP curve is:

A. Inverted U shaped
B. U shaped
C. Downward Sloping towards right

9. A curve which shows different combinations of labour and capital with which a firm can
produce a specific quantity of output.

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 A. Isoquant
B. Indifference Curve
C. Budget Line

10. These are the loci of points on isoquants where the marginal product of the factors are
zero:
A. Isoquant
B. Ridge Line
C. Budget Line

11. It shows different combinations of labour and capital that a firm can buy, given total
outlay and price of factors:
A. Ridge Line
B. Iso Cost Line
C. Budget Line

12. It occurs when increase in output is less than proportional to increase in inputs.
A. Increasing returns to Scale
B. Decreasing returns to Scale
C. Constant returns to scale

13. It occurs when increase in output is proportional to increase in inputs.

A. Increasing returns to Scale
B. Decreasing returns to Scale
C. Constant returns to scale

14. It occurs when increase in output is more than proportional to increase in inputs.
A. Increasing returns to Scale
B. Decreasing returns to Scale
C. Constant returns to scale

15. These are the advantages which accrue to the firm when it expands its output:
A. Economies of scale
B. Diseconomies of scale
C. Average Revenue

16. It is defined as surplus of production over consumption in an accounting year which is

further used for production.
A. Capital formation
B. Savings
C. Capital

17. Isoquants are convex to the origin due to:

A. Diminishing MRTS
B. Increasing MRTS
C. Constant MRTS

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18. The physical relationship between inputs used and the resulting output.
A. Consumption Function
B. Production Function
C. Investment Function

19. When total output or production of a commodity is increased by adding units of a

variable input, while the quantities of other inputs are held constant, increase in total
production becomes after some time smaller and smaller.
A. Law of returns to scale
B. Law of variable proportion
C. Law of diminishing return to scale

20. When all factors of production are increased in the same proportion, output will increase,
but the increase may be at an increasing or constant rate or decreasing rate.
A. Law of returns to scale
B. Law of variable proportion
C. Law of diminishing return to scale

21 A consumer buys a bundle of two goods, A and B. MU/P for A is 40/1. The marginal
utility of B is 20. The price of B must therefore be
A. 5
B. 0.5
C. 2
D. None of the above

22 A consumer buys a bundle with two goods, X and Y. MU/P for X is 4, MU/P for Y is 3.
What should the consumer do to optimise his decision with the same amount of money?
A. Increase X
B. Increase Y
C. Increase Y and lower X
D. Increase X and lower Y

23 In the 3rd stage of operation of the law of variable proportions, the marginal
product becomes ________.
A. Negative
B. Positive
C. Zero

24 If the price of gasoline goes up and Dan now buys fewer candy bars because he has to
spend more on gas, this would best be explained by the
A. substitution effect
B. income effect
C. highly elastic demand for gasoline
D. any of the above are possible explanations

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25. When AP = MP
A. AP is minimum
B. AP is maximum
C. MP is minimum
D. MP is maximum
E. TP is maximum

26. When TP is maximum

A. AP is zero
B. MP is maximum
C. MP is zero
D. AP is minimum
E. None of the above

27. Production in short run should take place in stage

A. I
B. II
C. III
D. IV
E. None of the above

28. As a firm moves down an isoquant, the MRTSLK

A. Increases
B. Decreases
C. Remains constant
D. At first increases and then decreases
E. At first decreases and then increases

29 The law of constant returns to scale is depicted by the marginal output curve which is
________.
A. Upward sloping
B. Downward sloping
C. Horizontal
D. Vertical

30. If the price of gasoline goes up and Dan now buys fewer candy bars because he has to
spend more on gas, this would best be explained by the
A. substitution effect
B. income effect
C. highly elastic demand for gasoline
D. any of the above are possible explanations

31. Which of the following is a variable cost?

A. Interest payments
B. Raw materials costs
C. Property taxes

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 D. All of the above are variable costs.

32. Which of the following is an implicit cost?

A. The salary earned by a corporate executive
B. Depreciation in the value of a company-owned car as it wears out
C. Property taxes
D. All of the above are implicit costs.

33. If an input is owned and used by a firm, then its

A. explicit cost is zero.
B. implicit cost is zero
C. opportunity cost is zero
D. economic cost is zero.

34. One reason that a firm may experience increasing returns to scale is that greater levels of
output make it possible for the firm to
A. employ more specialized machinery.
B. obtain bulk purchase discounts
C. employ a greater division of labor
D. All of the above are correct

35. Which of the following is an assumption of linear break-even analysis?

A. Output price is constant
B. Average variable cost is constant
C. Average fixed cost is constant
D. All of the above are assumptions of linear breakeven analysis

36. In the 3rd stage of operation of the law of variable proportions, the marginal product
becomes ________.
A. Negative
B. Positive
C. Zero

37. Isoquants are convex to the origin. This is possible because

A. Money outlay of the entrepreneur is constant
B. Marginal rate of technical substitution between labor (L) and capital (K) is
decreasing
C. It is not possible to have infinite number of combinations of two outputs
D. Both (a) and (b) above

38. When a proportional change in input combination caused the same proportionate change
in output, the returns to scale is said to exhibit
A. Increasing returns
B. Decreasing returns
C. Constant returns

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 D. Negative returns
E. Law of variable proportion.

38. When one input is variable and all other inputs are fixed, the firm’s production
exhibits________
A. Law of Returns to a Scale
B. Long run analysis
C. Law of variable proportions
D. Long run production function

39. AC and ----------curves never intersect each other as AFC can never be zero
A. AVC
B. MC
C. TC
Ans. (1)(A), (2)(C), (3)(B), (4)(A), (5)(A), (6)(C), (7)(B), (8)(A), (9)(A), (10)(B), (11)(B),
(12)(B), (13)(C), (14)(A), (15)(A), (16)(A), (17)(A), (18)(B), (19)(B), (20)(A), (21)(B),
(22)(D), (23)(A), (24)(B), (25)(B), (26)(C), (27)(B), (28)(B), (29)(C), (30)(B), (31)(B),
(32)(B), (33)(A), (34)(D), (35)(C). (36)(C), (37)(B), (38)(C), (39)(C), (40)(A)

II Short Answer Type Questions:

1. Define labor.
2. Explain meaning of land
3. Discuss factors of production.
4. Explain law of variable proportion.
5. Explain briefly the concept of return and profit.
6. What is short run?
7. Differentiate between short run and long run.
8. What are variable factors?
9. What are different factors of production?
10. Explain briefly mobility of factors of production.
11. What is production function?
12. What are different factors of production?
13. What are assumptions of law of variable proportion?
14. Define Isocost Line.
15. What is Law of Returns to Scale?
16. Define TP.
17. What are economies of scale?
18. Define producer equilibrium.
19. What are different features of Isoquants.
20. Explain the meaning of MP.
21. Why isoquants are convex to the origin?
22. Explain MRTS.
23. What is ridge line?
24. Differentiate between Law of Variable Proportion and Law of Return to Scale.
25. Differentiate between economies and diseconomies.
26. State with example the law of diminishing returns.
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27. Distinguish between Returns to scale and returns to a factor
28. Distinguish between Internal and external economies
29. Distinguish between Diminishing returns to a variable factor and diminishing returns to
scale.
30. Write short note on Total product, marginal product and average product.
31. Properties of Opportunity Cost curve.
32. Explain the relationship between Fixed Cost, Variable Cost
33. Explain the relationship between Total Cost and Marginal Cost.
34. What do you understand by ‘Equilibrium price?
35. What are the factors, which cause an increase in returns?
36. When are the LAC and LMC curves consistent with a production function?
37. Explain the other factors which are responsible for rise in demand of food products even
when the price of food products in rising ?
38. The gap between average total cost and average variable cost narrows down with the
increase in the level of output but they never meet.
39. Explain the short run and long run production functions using isoquants.
40. “Cost schedule of a firm is given below. Find out
(i) Total Fixed Cost (ii) Average Fixed Cost (iii) Total Variable Cost (iv) Average
Variable Cost
Units Total Cost Total Fixed Average Total Average
(Rs.) Cost Fixed Cost Variable Cost Variable Cost
0 20 20 - - -
1 40 20
2 56 20
3 70 20
4 86 20

II Long Answer Type Questions:

1. Explain the law of Returns to Scale. Show the three kinds of Returns to Scale with the
help of isoquants.
2. What are ridge lines? What do they indicate?
3. Explain the Law of Variable Proportions. What are the different stages of production? In
which stage will a rational producer operate?
4. Explain economies and diseconomies of scale.
5. Distinguish between Returns to Scale and Returns to Factor.
6. Give the relationship between TP, AP and MP curves.
7. What is isocost line? What is its slope?
8. Derive the shape of isoquants. What is the slope of an isoquant?
9. Write short note on fixed and variable factors.
10. Discuss factors of production. Explain law of variable proportion with an example.
11. What are economies and diseconomies of scale? How do these affect the cost of
production?
12. Explain briefly Short period and Long period.
13. Explain Constant returns to scale.

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14. What are the three stages of production? Graphically identify the stages of production in
which a firm will produce to maximize its profit.
15. Explain least cost combination of input for a firm.\
16. Explain increasing returns to scale.
17. Explain producer equilibrium with help of diagram.
18. What are different stages of Law of Returns to Scale? Explain with help of diagram.
19. Differentiate between variable factors and fixed factors.
20. Distinguish between short run and long run.
21. Explain MRTS with the help of example.
22. Explain the concept of Isocost line.
23. What are different features of Isoquants?
24. Why Isoquants are convex to the origin?
25. What are different stages of Law of Variable Proportion?
26. Explain the concept of utility. Illustrate graphically the relationship between the total
utility, marginal utility and average utility.
27. State and explain the law of diminishing marginal utility. Bring out clearly the
relationship between MU and price.
28. What is consumer equilibrium? Explain consumer’s equilibrium with the help of
indifference curve analysis?
29. What do you mean by an iso-product curve? How is it different from indifference curve?
What does the slope of an iso-product curve indicate?
30. Distinguish between short-term and long–term production function. Discuss the
properties, managerial uses and limitations of Cobb Douglas production function?
31. Explain the relationship between Fixed Cost, Variable Cost, Total Cost and Marginal
Cost.
32. “Economics of scale may be either external or internal; they may be technical
managerial, financial or risk bearing”. Elucidate.
33. ‘The operation of the law of Diminishing Return is due to scarcity of the factors of
production.’ Discuss.
34. State and explain the law of increasing Return. What are the factors, which cause an
increase in returns?
35. What do you understand by ‘Equilibrium price’? How do changes in demand and supply
affect it?
36. How will you define economies of scale? What are the sources of internal and external
economies of scale?
37. What are Iso-quants and Iso-cost curves? Explain the producer’s equilibrium using them.
38. Explain Least Cost Factor Combi.nation or Producer’s Equilibrium or Optimal
Combination of Inputs.
39. What is Iso- quant Curve? Explain the law of Variable Proportion with the help of Iso-
quant Curve.

UNIT - IV

I MULTIPLE CHOICE QUESTIONS:

1. It is the actual expense plus depreciation charge for capital equipments.

A. Accounting Cost

152
 B. Economic Cost
C. Sunk Cost
D. Social Cost

2. It is a curve which gives the relationship between a firm’s cumulative output and the
amount of inputs needed to produce each unit of output.
A. Total Revenue Curve
B. Learning Curve
C. Supply Curve
D. Demand Curve

3. It is the money cost incurred by a firm in producing a commodity.

A. Accounting Cost
B. Economic Cost
C. Private Cost

4. It refers to the relationship between price and quantity supplied.

A. Demand
B. Supply
C. Cost
D. Revenue

5. It occurs when there is infinite change in quantity supplied at a price.

A. Perfectly Elastic Supply
B. Perfectly inelastic Supply
C. Unit Elastic Supply

6. The shift in demand curve includes:

A. Increase in demand
B. Decrease in demand
C. Expansion in demand
D. Both A and B

7. The movement in demand curve includes:

A. Increase in demand
B. Expansion in demand
C. Contraction in demand
D. Both (B) and (C)
8. The supply is perfectly inelastic if:
A. Elasticity of supply = 0
B. Elasticity of supply = 1
C. Elasticity of supply <1
D. Elasticity of supply >1

9. The supply is inelastic if:

A. Elasticity of supply is greater than 0 and less than 1

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 B. Elasticity of supply = 1
C. Elasticity of supply <1
D. Elasticity of supply >1

10. The supply is unitary elastic if:

A. Elasticity of supply = 0
B. Elasticity of supply = 1
C. Elasticity of supply <1
D. Elasticity of supply >1

11. The supply is perfectly elastic if:

A. Elasticity of supply = infinity
B. Elasticity of supply = 1
C. Elasticity of supply <1
D. Elasticity of supply >1

12. The supply is elastic if:

A. Elasticity of supply is greater than 1 and less than infinity
B. Elasticity of supply = 1
C. Elasticity of supply <1
D. Elasticity of supply >1

13. The shape of supply curve is:

A. Downward sloping
B. Upward sloping
C. Straight line horizontal to x-axis
D. Straight line vertical to y-axis

14. It is at that point where TR=TC or AR=AC and profits are zero.
A. Break-Even Point
B. Shut-down point
C. Producers Equilibrium
D. Long run equilibrium

15. It is that point where P=AVC and losses are equal to TFC.
A. Break-Even Point
B. Shut-down point
C. Producers Equilibrium
D. Long run equilibrium

16. Profit is calculated as an excess of:

A. AR over AC
B. TR over TC
C. Both (A) and (B)

17. It is defined as a market structure in which there are a large number of price taking firms,
selling homogeneous products:

154
 A. Perfect Competition
B. Oligopoly
C. Monopoly
D. Monopolistic Competition
18. A market structure in which there is only one seller and no close substitutes of the
commodity:
A. Perfect Competition
B. Oligopoly
C. Monopoly
D. Monopolistic Competition

19. It refers to a market situation in which there are many firms selling closely related but
unidentical commodities:
A. Perfect Competition
B. Oligopoly
C. Monopoly
D. Monopolistic Competition

20. It is defined as a market structure in which there are few sellers of the commodity:
A. Perfect Competition
B. Oligopoly
C. Monopoly
D. Monopolistic Competition

21 The U-shapedness of the long run curve average cost curve reflects
A. The law of variable proportions
B. The technological changes
C. The law of returns to scale
D. None of these

22 If the price is less than the average costs but higher than the average variable costs:
A. The firm is making a loss and will shutdown in the short term
B. The firm is making a profit
C. The firm is making a loss but will continue to produce in the short term
D. The firm is making a loss and is making a negative contribution to fixed costs

23 If firms earn normal profits

A. They will aim to leave the industry
B. Other firms will join the industry
C. The revenue equals total costs
D. No profit is made in accounting terms

24 In the long term a firm will produce provided the revenue covers:
A. Fixed costs
B. Variable costs
C. Total costs

25 The goal of a pure market economy is to best meet the desires of

155
 A. Consumers
B. Companies
C. Workers
D. The government
26 In a pure market economy, which of the following is a function of the price?
I. Provide information to sellers and buyers , II. provide incentives to sellers and
buyers
A. I only
B. II only
C. Both I and II
D. Neither I nor II

27 In a market system, sellers act in _____ interest , but this leads to behaviors in______
interest.
A. Self; self
B. Self; society’s
C. Society’s; society’s
D. Society’s; self

28 Which of the following is a characteristic of pure monopoly?

A. One seller of the product
B. Low barriers to entry
C. Close substitute products
D. Perfect information

29 In pure monopoly, what is the relation between the price and the marginal revenue?
A. The price is greater than the marginal revenue
B. The price is less than the marginal revenue
C. There is no relation
D. They are equal

30 A firm emerges as a leader in oligopoly market due to all the following reasons except –
A. Market share
B. Presence in all segment
C. Indeterminate demand curve
D. Pioneer in particular product category

31. Which of the following is not a type of market structure?

A. Competitive monopoly
B. Oligopoly
C. Perfect competition
D. All of the above are types of market structures.

32. If a firm sells its output on a market that is characterized by many sellers and buyers, a
homogeneous product, unlimited long-run resource mobility, and perfect knowledge, then
the firm is a
A. a monopolist.
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 B. an oligopolist.
C. a perfect competitor.
D. a monopolistic competitor

33. If a firm sells its output on a market that is characterized by many sellers and buyers, a
differentiated product, and unlimited long-run resource mobility, then the firm is
A. a monopolist
B. an oligopolist
C. a perfect competitor
D. a monopolistic competitor

34. If a firm sells its output on a market that is characterized by few sellers and many buyers
and limited long-run resource mobility, then the firm is
A. a monopolist
B. an oligopolist
C. a perfect competitor
D. a monopolistic competitor

35. A perfectly competitive firm should reduce output or shut down in the short run if market
price is equal to marginal cost and price is
A. greater than average total cost
B. less than average total cost
C. greater than average variable cost
D. less than average variable cost

36. A firm emerges as a leader in oligopoly market due to all the following reasons except –
A. market share
B. Presence in all segment
C. Indeterminate demand curve
D. Pioneer in particular product category
37 The portion above the kink on demand curve of an oligopolist is –
A. Less elastic
B. More elastic
C. Infinitely elastic
D. Perfectly elastic
38 Sweezy model fails to explain-
A. The effect of discovery that the firm’s belief about demand curve is incorrect
B. Indeterminate demand curve & price rigidity
C. Non-price competition
D. Interdependent decision making
39 Two firms in Cournot model together will supply only to ____ of the total market.
A. 1/3
B. 2/3
C. ¼
D. ¾

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40 In a centralized cartel price is determined by------
A. Association
B. Firm
C. Government
Ans. (1)(A), (2)(B), (3)(C), (4)(B), (5)(A), (6)(D), (7)(D), (8)(A), (9)(A), (10)(B), (11)(A),
(12)(A), (13)(B), (14)(A), (15)(B), (16)(C), (17)(A), (18)(C), (19)(D), (20)(B), (21)(A),
(22)(C), (23)(C), (24)(B), (25)(A), ((26)(C), (27)(B), (28)(A), (29)(A), (30)(C), (31)(A),
(32)(C), (33)(D), (34)(B), (35)(D), (36)(B), (37)(A), (38)(A), (39)(D), (40)(A)

II Short Answer Type Questions:

1. Explain briefly oligopoly.

2. What are the major characteristics of oligopoly?
3. Explain diagrammatically kinked demand curve of oligopoly.
4. What are cartels?
5. Define monopolistic competition.
6. What are selling cost?
7. Explain product differentiation.
8. What are different features of monopolistic competition?
9. What is price discrimination?
10. Explain demand curve of monopoly competition diagrammatically.
11. Compare the demand curves of monopoly
12. What is monopoly?
13. What are different causes of monopoly competition?
14. What is relationship between AR and MR curve of monopoly competition?
15. What is relationship between AR and MR curve of perfect competition?
16. What is break even point?
17. What are different features of perfect competition?
18. Differentiate between Explicit Cost and Implicit Cost.
19. Differentiate between Private and Social Cost.
20. What do you understand by Pricing Under Perfect Competition?
21. What is Pricing Under Monopoly?
22. Write a note on Control of Monopoly.
23. What are the condition & necessary for price discrimination?
24. How is price and output determined by a monopolist in long run?
25. Explain how price and output decisions are taken under the condition of Oligopoly?
26. How does a firm take its pricing and output decisions in long run while operating under
monopolistic competition?
27. Differentiate between Sunk Cost and Shut Down Cost.
28. What do you mean by monopoly?
29. Write short note on price leadership?
30. Explain oligopoly.
31. What is pay-off matrix.

158
32. Discuss the objective of profit maximization.
33. Define perfect competition.
34. What are the features of a monopolistic competitive firm
35. Differentiate between implicit and explicit cost.
36. ‘A firm is price taker and not a price maker in a perfectly competitive market’. Discuss.
37. The U shape of an average cost curve will be less pronounced the longer the period to
which the curve relates. Explain.
38. What do you understand by Learning curve?
39. MC curve is a competitive firm’s supply curve. Explain with the help of a diagram
40. What are the reasons for the existence of monopoly?

III Long Answer Type Questions:

1. Explain Oligopoly. What are the different features of Oligopoly?

2. What are cartels? How do they obtain joint profit maximization?
3. What are the causes of Oligopoly? Explain price rigidity with the help of kinked demand
curve.
4. Discuss short run equilibrium under perfect competition and monopoly competition.
5. Give reasons for the fact that MR and AR curve are equal under perfect competition
while AR is greater than MR in .
6. What is compatibilily in case of monopoly? Explain with the help of diagram me.
7. State the Law of Supply. What are the underlying assumptions? Show the law
numerically and graphically.
8. Show expansion and contraction in supply curve.
9. Give the difference in the causes of increase and decrease in supply. Are they reverse of
each other?
10. Differentiate between decrease and contraction of supply.
11. State the factors that cause a rightward shift of the supply curve of a commodity. When
will there be a movement along the given supply curve?
12. Explain the relationship between the state of technology and supply of a commodity.
13. Draw the supply curve showing:
(a) es= 0
(b) es= ∞
(c) es= 1
14. What is the value of elasticity of supply for a straight line supply curve which passes
through the origin? Explain graphically.
15. Explain the difference between short run and long run equilibrium of a firm under perfect
competition?
16. Explain that under perfect competition price equals average cost in the long run.
17. Differentiate between Private cost and Social Cost.
18. Write short note on:
(a) Break Even point
(b) A firm is price taker under perfect competition
(c) Relationship between AR and the MR curves under the perfect competition
(d) Shut Down point
(e) MSP

159
19. Discuss price, output and profit positions in perfect competitive market structures.
20. Give reason for the fact that MR and AR are equal under perfect competition while AR is
greater than MR under monopoly.
21. Discuss short run Equilibrium of a firm under perfect competition and monopoly.
22. Is it possible that a firm may produce while sustaining losses? If so, when and how
much?
23. Write a short note on market interventions and failures.
24. What is price discrimination? How price is determined under it? Is price discrimination
useful to society?
25. There is always underutilized capacity in the long run of a firm in monopolistic
competition. Discuss.
26. Define optimum input combination. What are the criteria for the ‘least cost combination
of inputs? Explain graphically. Is perfect competition a possible market situation in any
of the economies of the world? Give reasons in support of your answer.
27. What do you mean by monopolistic competition? Is product differentiation an outcome of
monopolistic competition or vice-versa? Discuss the behaviour of the firm under
monopolistic competition?
28. “Among the multiplicity of objectives that a modern firm has profit maximization
continues to be the most important.” Comment.
29. Show graphically how a profit maximizing discriminating monopolist will distribute his
output in two markets and charge different prices under third degree price discrimination.
Also discuss the equilibrium of the monopolist under dumping, if the foreign market in
which he operates is perfectly competitive while in domestic market he faces a downward
sloping demand curve
30. Explain and illustrate the price leadership of a low cost firm. Why do the high cost firms
accept a price lower than their profit maximizing price?
31. What is monopoly? How is price and output determined by a monopolist in short run and
long run?
32. How does a firm take its pricing and output decisions in shrot and long run while
operating under monopolistic competition?
33. What do you mean by Oligopoly? Explain how price and output decisions are taken
under the condition of Oligopoly?
34. What do you understand by Price discrimination? What are the condition & necessary for
price discrimination?
35. Explain various pricing methods? Point out as to where they are suitable?
36. Explain the relation between average cost and marginal cost. How is it possible that
marginal cost continues to rise while average cost declines?
37. Discuss the meaning and main features of monopolistic market situation.
38. Will a monopolist firm continue to produce in the short run, even if it incurs losses?
39. What is price discrimination? How does a discriminating monopolist allocate his output
and charge different prices in different markets to maximize his profits?
40. How is equilibrium in the short run attained in case of a monopolistically competitive
market? Explain

160
 QUESTION BANK

COMPUTER APPLICATIONS

BBA 109

161
UNIT – I
I MULTIPLE CHOICE QUESTIONS:

1. Which of the following computer implemented binary numbers, perform calculations

using electronics and implemented separate computation and memory for the first time?
A Mark I
B ABC
C Z3
D None of above

2. The memory which is programmed at the time it is manufactured

A ROM
B RAM
C PROM
D EPROM

3. Which of the following memories needs refreshing?

A SRAM
B DRAM
C ROM
D All of above

4. Can you tell what passes into and out from the computer via its ports?
A Data
B Bytes
C Graphics
D Pictures

5. An output device that uses words or messages recorded on a magnetic medium to

produce audio response is
A Magnetic tape
B Voice response unit
C Voice recognition unit
D Voice band

6. Which of the items below are considered removable storage media?

A Removable hard disk cartridges
B (Magneto-optical) disk
C Flexible disks cartridges
D All of the above

7. Which of the following is not purely output device?

A Screen
B Printer
C Speaker

162
 D Plotter

8. Who developed a mechanical device in the 17th century that could add, subtract, multiple,
divide and find square roots?
A Napier
B Babbage
C Pascal
D Leibniz

9. The first Macintosh computer was from

A First generation
B Second generation
C Third generation
D Fourth generation

10. Which of the following is not a form of data?

A numbers and characters
B images
C sound
D none of above

11. Which is not a computer classification?

A mainframe
B maxframe
C mini
D notebook

12. The control unit of a microprocessor

A Stores data in the memory
B Accepts input data from keyboard
C Performs arithmetic/logic function
D None of above

13. Which of the following is internal memory?

A Disks
B Pen Drives
C RAM
D CDs

14. Which operation is not performed by computer?

A Inputting
B Processing
C Controlling
D Understanding

163
15. Floppy disks which are made from flexible plastic material are also called?
A Hard disks
B High-density disks
C Diskettes
D Templates

16. The magnetic storage chip used to provide non-volatile direct access storage of data and
that have no moving parts are known as
A Magnetic core memory
B Magnetic tape memory
C Magnetic disk memory
D Magnetic bubble memory

17. A collection of related instructions organized for a common purpose is referred to as

A File
B Database
C Program
D None of above

18. Plotter accuracy is measured in terms of repeatability and………..

A Buffer size
B Resolution
C Vertical dimensions
D Intelligence

19. Computer instructions written with the use of English words instead of binary machine
code is called
A Mnemonics
B Symbolic code
C Gray codes
D Opcode

20. Hard disk is a:

A Magnetic Device
B Mechanical Device
C Optical Device
D Magneto-Optical Device

21. On which aspect the analog computers are better than digital?
A Speed
B Accuracy
C Reliability
D Automatic

22. Artificial Intelligence is associated with which generation?

A First Generation

164
 B Second Generation
C Fifth Generation
D Sixth Generation

23. Which of the following machine was not invented by Charles Babbage?
A Tabulating Machine
B Analytical Engine
C Difference Engine
D Both C and D

24. How many numbers could ENIAC store in its internal memory
A 100
B 20
C 80
D 40

25. A nibble consists of:

A 2 bits
B 4 bits
C 8 bits
D 16 bits

26. Mouse is a:
A Input Device
B Output Device
C Storage Device
D Memory Device

27. Vacuum tubes were used in:

A 1st Generation Languages
B 2nd Generation Languages
C 3rd Generation Languages
D 4th Generation Languages

28. A dumb terminal has

A an embedded microprocessor
B extensive memory
C independent processing capability
D keyboard and screen

29. All devices that are controlled by central processing unit but are not part of it are called
A Peripheral devices
B Arithmetic units
C Control unit devices
D Main store devices

165
30. Which of the following is used in the Banking Industry for the processing of cheques?
A OMR
B OCR
C MICR
D Bar Code

31. …………….. is a combination of hardware and software that facilitates sharing of the
information between computing devices.
A Network
B Peripheral
C Expansion Board
D Digital Device

32. Which of the following is an invalid type of memory?

A RAM
B ROM
C PRAM
D EPROM

33. The Secondary storage device that follows the sequential mode of access is
A Optical Disk
B Magnetic Disk
C Magnetic Tape
D None of these

34. Human beings are referred as Homo sapiens, which device is called Sillico sapiens?
A Monitor
B Hardware
C Software
D Computer

35. What is Light Pen?

A Mechanical Input Device
B Optical Input Device
C Electronic Input Device
D Optical Output Device

36. The term ‘Computer’ is derived from..........

A Latin
B German
C French
D Arabic

37. Who is the father of Computer?

A Allen Turing
B Charles Babbage

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 C Simur Cray
D Augusta Adaming

38. A CPU contains

A a card reader and a printing device
B an analytical engine and a control unit
C a control unit and an arithmetic logic unit
D an arithmetic logic unit and a card reader

39. Which of the following controls the process of interaction between the user and the
operating system?
A User interface
B Language translator
C Platform
D Screen saver

40. The first computers were programmed using

A assembly language
B machine language
C source code
D object code

41. ..........is a combination of hardware and software that facilitates the sharing of
information between computing devices.
A network
B peripheral
C expansion board
D digital device

42. Coded entries which are used to gain access to a computer system are called
A Entry codes
B Passwords
C Security commands
D Code words

43. Which of the following statements is true?

A Minicomputer works faster than Microcomputer
B Microcomputer works faster than Minicomputer
C Speed of both the computers is the same
D The speeds of both these computers cannot be compared with the speed of
advanced

44. What is a light pen?

A A Mechanical Input device
B Optical input device
C Electronic input device

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 D Optical output device

45. CD-ROM stands for

A Compactable Read Only Memory
B Compact Data Read Only Memory
C Compactable Disk Read Only Memory
D Compact Disk Read Only Memory

ANS. (1)(B), (2)(D), (3)(B), (4)(A), (5)(B), (6)(D), (7)(A), (8)(D), (9)(D), (10)(D), (11)(B),
(12)(D), (13)(C), (14)(D), (15)(C), (16)(D), (17)(C), (18)(B), (19)(B), (20)(A), (21)(B),
(22)(C), (23)(A), (24)(B), (25)(B), (26)(A), (27)(A), (28)(D), (29)(A), (30)(C), (31)(A),
(32)(C), (33)(C), (34)(D), (35)(B), (36)(A), (37)(B), (38)(C), (39)(A), (40)(B), (41)(A),
(42)(B), (43)(A), (44)(B), (45)(D)

II SHORT ANSWER TYPE QUESTIONS:

1. What is a CDROM? How is it different from hard disk?

2. How many tracks are recorded on a commercial disk pack?
3. What is a major application of DVDROM. Explain Graphic tablet
4. Explain Scanners
5. How data recorded on and read from an optical disk?
6. What is garbage in and garbage- out?
7. Write full forms of following: IBM, ENIAC, EDVAC, EDSAC, UNIVAC.
8. With the help of a diagram explain computer system.
9. Who is known as the father of modern digital programmable computers and why?
10. Explain the meaning of memory dump.
11. Explain Cache memory.
12. What do you mean by IC?
13. Differentiate between Hardware, Software and Human-ware?
14. What do you mean by Mainframe Computers? Explain its Components.
15. What is UPC? In which I/O device it is used?
16. What is a Trackball? How is it different from a Mouse?
17. What is Information Kiosk? What are its uses?
18. Differentiate between a Serial and a Bus Mouse.
19. What do you understand by Hard-copy and Soft-copy outputs?
20. What is Microprocessor? How it helped in further growth of Computer Industry?
21. Explain the Traditional classification of Computers.
22. What is flash Memory? Why it is so called?
23. How Smartphone is different from PDA?
24. Why Modern computers are also known as Parallel Computers?
25. What are the uses of magnetic disks?
26. What are the main Memory Storage devices?
27. What is a parity bit? How is it used for detecting errors?
28. What is the difference between magnetic disk, magnetic tape and optical disk
29. What do you mean by RAM? Explain its types?
30. What is “flying -head”?

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31. Explain Keyboard, Joystick, Trackball, Light Pen.
32. Why Computer is known as a Computer System?
33. What is the difference between magnetic disk, magnetic tape and optical disk
34. When are line printers used?
35. What is WORM disk? What limitations of a CD-ROM disk does it overcome?
36. Differentiate between CISC and RISC processors
37. Why is computer called as data process device?
38. What are the components of computer? Discuss it with the help of block diagram
39. What is meant by overflow? Is it a software problem or a hardware problem?
40. What do you mean by ROM? Explain its types?

III Long Answer Type Questions:

1. Explain various computer generations?

2. Explain the working of a Mouse.
3. Explain different classification of computer systems
4. Describe briefly the main principle of LCD.
5. Explain Super computer, mainframe and personal computers
6. Draw and explain the block diagram of digital computer, along with input and output for
each unit.
7. Explain different types of computers.
8. Explain the difference between primary & secondary storage devices in detail.
9. Distinguish between a sequential access, a direct access, and a random-access storage
device. Give one example of each.
10. What is secondary storage? How does it differ from a primary storage?
11. What are the characteristics of a mass storage system? Why are they referred to as
archival storage?
12. Briefly describe the functions of different units of a Computer.
13. How does a computer process information?
14. What are the components of the computer system?
15. What is computer memory? How are data stored.
16. Discuss in brief various characteristics of Computers.
17. What do you understand by Point-and-Draw devices? Explain various commonly used
Point-and-Draw devices.
18. What are Data Scanning devices Explain its features and types?
19. Differentiate between Impact Printers and Non- impact Printers. Explain any two
examples each of both the types.
20. Is there any difference between Mainframe Computers and Mainframe Systems? Explain
various components of Mainframe Systems.
21. Explain the functioning and structure of CPU or Processor with the help of a diagram.
22. Write advantages and limitations of optical disks as a secondary storage device.
23. What is a Hard disk? Explain its various types.
24. Write Short notes on:
A NIC
B Workstations
C Client and Server Computers

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 D Motion Video Card
E Expansion Slots
25. Distinguish between the following:
A Sequential mode and Random Mode
B Static RAM and Dynamic RAM
C Magnetic Tape and Magnetic Disk
26. Differentiate among Online, Near-line and Off-line storage. Write names of storage
devices typically used for each type of storage.
27. Explain the memory hierarchy of a computer system.
28. In the context of magnetic disk storage, define the following terms and give the
relationship among them (if any):
29. (a) Track (b) Cylinder (c) Sector (d) Disk address (e)Cluster
30. What are data scanning devices? Explain its characteristics and types.
31. What is LCD? Differentiate between CRT and LCD monitors.
32. What is a Super computer? What are its main uses?
33. Enlist any five secondary storage devices and explain their functioning.
34. What is a Workstation? Write the major differences between a PC and a Workstation.
35. Explain any three commonly used types of Mass storage devices.
36. Distinguish between a sequential access, a direct access, and a random access storage
device. Give one example of each.
37. What are Optical disks? List all the main advantages and limitations of optical disks as a
secondary storage device.
38. What is a sequential access storage device? Give example of a few applications for which
such a storage device is suitable.
39. In the context of magnetic disk storage, define the following terms and give the
relationship among them (if any):
(a) Truck (b) Cylinder (c) Sector (d) Risk address
40. What are data scanning devices? How do they help in improving input data accuracy as
compared to keyboard devices?

UNIT - II

I MULTIPLE CHOICE QUESTIONS:

1. Round robin scheduling is essentially the preemptive version of ________.

A FIFO
B Shortest job first
C Shortest remaining
D Longest time first

2. A page fault occurs

A When the page is not in the memory
B When the page is in the memory
C When the process enters the blocked state
D When the process is in the ready state

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3. Process is
A Program in High level language kept on disk
B Contents of main memory
C A program in execution
D A job in secondary memory

4. What is a shell?
A It is a hardware component
B It is a command interpreter
C It is a part in compiler
D It is a tool in CPU scheduling

5. A system program that sets up an executable program in main memory ready for
execution is
A Assembler
B Linker
C Loader
D Compiler

6. Routine is not loaded until it is called. All routines are kept on disk in a relocatable load
format. The main program is loaded into memory & is executed. This type of loading is
called _________
A Static loading
B Dynamic loading
C Dynamic linking
D Overlays

7. In the blocked state

A the processes waiting for I/O are found
B the process which is running is found
C the processes waiting for the processor are found
D none of the above

8. A system program that combines the separately compiled modules of a program into a
form suitable for execution
A Assembler
B Linking Loader
C Cross-compiler
D Load and go

9. Virtual memory is __________.

A An extremely large main memory
B An extremely large secondary memory
C An illusion of extremely large main memory
D A type of memory used in super computers.

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10. Bug means
A logical error in a program
B A difficult syntax error in a program
C Documenting programs using an efficient documentation tool
D All of the above

11. In the running state

A Only the process which has control of the processor is found
B All the processes waiting for I/O to be completed are found
C All the processes waiting for the processor are found
D None of the above

12. Multiprogramming systems ________.

A Are easier to develop than single programming systems
B Execute each job faster
C Execute more jobs in the same time
D Are used only on large main frame computers

13. Which is not the state of the process?

A Blocked
B Running
C Ready
D Privileged

14. The strategy of allowing processes that are logically runnable to be temporarily
suspended is called
A preemptive scheduling
B non-preemptive scheduling
C shortest job first
D first come first served

15. A thread
A is a lightweight process where the context switching is low
B is a lightweight process where the context switching is high
C is used to speed up paging
D none of the above

16. The state of a process after it encounters an I/O instruction is __________.

A Ready
B Blocked/Waiting
C Idle
D Running

17. The number of processes completed per unit time is known as __________.
A Output

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 B Throughput
C Efficiency
D Capacity

18. _________ is the situation in which a process is waiting on another process, which is also
waiting on another process ... which is waiting on the first process. None of the processes
involved in this circular wait are making progress.
A Deadlock
B Starvation
C Dormant
D None of the above

19. Which of the following file name extension suggests that the file is Backup copy of
another file?
A TXT
B COM
C BAS
D BAK

20. Which technique was introduced because a single job could not keep both the CPU and
the I/O devices busy?
A Time-sharing
B Spooling
C Preemptive scheduling
D Multiprogramming

21. A critical region

A is a piece of code which only one process executes at a time
B is a region prone to deadlock
C is a piece of code which only a finite number of processes execute
D is found only in Windows NT operation system

22. The mechanism that bring a page into memory only when it is needed is called ______.
A Segmentation
B Fragmentation
C Demand Paging
D Page Replacement

23. PCB stands for

A Program Control Block
B Process Control Block
C Process Communication Block
D None of the above

24. FIFO scheduling is ________.

A Preemptive Scheduling

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 B Non Preemptive Scheduling
C Deadline Scheduling
D Fair share scheduling

25. Which of the following systems software does the job of merging the records from two
files into one?
A Security software
B Utility program
C Networking software
D Documentation system

26. FORTRAN is a programming language. What does FORTRAN stand for?

A File Translation
B Format Translation
C Formula Translation
D Floppy Translation

27. With which memory can the system run programs that are larger than the Primary
memory of the system?
A Cache memory
B Virtual Memory
C Primary Memory
D None of these

28. The substitution made by the OS between the processes to allocate space is……………..
A Swapping
B Deadlock
C Fragmentation
D Paging

29. The Memory Management scheme that allows the processes to store non-contiguously in
memory is…………………
A Spooling
B Paging
C Swapping
D Deadlock

30. Switching the CPU to another Process requires to save state of the old process and loading
new process state is called as __________.
A Process Blocking
B Context Switch
C Time Sharing
D None of the above

31. A computer program that converts the entire program into machine language is known as
a/an ………….

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 A Interpreter
B Compiler
C Commander
D Simulator

32. Which of the following memory unit that processor can access more rapidly
A Main Memory
B Virtual Memory
C Cache Memory
D Read Only Memory

33. The primary distinction between the short-term scheduler and long term scheduler is……
A The length of their queues
B The type of processes they schedule
C The frequency of their execution
D None of these

34. Query Languages come under ………………………..

A Third Generation
B Fourth Generation
C Fifth Generation
D None of these

35. The Hardware mechanism that allows a device to notify the CPU is called
A Pooling
B Interrupt
C Driver
D Controlling

36. The set of computer programs, procedures and associated documents is called:
A Hardware
B Software
C Firmware
D Package

37. Functions performed by OS are called:

A Process Management
B File Management
C Security
D All of the above

38. The time interval from time of submission to completion of job is called:
A Turnaround time
B Response time
C Throughput
D Frequency

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39. Processes should submitted in such a manner that:
A Idle Time is Kept Minimum
B Idle Time is Kept Max.
C At Any Time
D All of the Above

40. A transaction file is a file that stores:

A Input Data Until is Processed
B Current Data
C Output data
D Back Up Data

41. Data integrity meAns.

A Consistency of Data in all Files
B Inconsistency of Data
C Security of Data
D Access of Data

42. The primary key focuses on:

A Unique and not Null Values
B Unique Values
C Null Values
D Not Null Values

43. Which of the following is not a database model?

A Hierarchical
B Network
C Relational
D Hybrid

44. DDL refers to:

A Data definition language
B Data defining language
C Differential data language
D None of the above

45. In the relational modes, cardinality is termed as:

A Number of tuples.
B Number of attributes.
C Number of tables.
D Number of constraints.

Ans. (1)(a), (2)(a), (3)(c), (4)(b), (5)(c), (6)(c), (7)(a), (8)(b), (9)(c), (10)(a), (11)(a), (12)(c),
(13)(d), (14)(a), (15)(a), (16)(b), (17)(b), (18)(a), (19)(d), (20)(d), (21)(a), (22)(c),
(23)(b), (24)(b), (25)(b), (26)(c), (27)(b), (28)(a), (29)(b), (30)(a), (31)(b), (32)(c),

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 (33)(c), (34)(b), (35)(b), (36)(B), (37)(D), (38)(A), (39)(A), (40)(B), (41)(A), (42)(A),
(43)(D), (44)(A), (45)(A)

II SHORT ANSWER TYPE QUESTIONS:

1. What is an operating system? Why is it necessary for a computer system?

2. What is RTOS?
3. What do you understand by GUI?
4. Explain the role of OS as the Resource Manager of a computer system.
5. How can we measure the efficiency of an OS?
6. What is cryptography? How does it help in improving the security of a computer
system?
7. What is the difference between "Name" of a file and its "Attributes"?
8. Differentiate between compiler and interpreter.
9. Discuss the analogy between a computer language and a natural language.
10. What is an Assembler? How its translation process works?
11. Why do Machine and Assembly languages are often referred as Low-level languages?
12. Highlight the difference between a source program and an object program.
13. What does "Freeware" and "Shareware" mean?
14. What is Software? Give its classification.
15. Define the following terms:
(i) Throughput
(ii) Turnaround time
16. What is a process in a computer system? Explain life cycle of a process
diagrammatically.
17. What is batch processing? How are jobs typically executed in a batch processing
system?
18. Differentiate between I/O bound and CPU bound jobs.
19. What is a PCB? What does it typically contain?
20. What is time sharing? What is a time slice?
21. Differentiate between sequential access and random-access files.
22. What is a File management system?
23. What is the difference between a master file and a transaction file?
24. What are desktop icons? Describe some of the desktop icons.
25. Discuss the features of Window 7.
26. Discuss Control Panel.
27. What is a Memory partition?
28. How does a short-term scheduler work?
29. How does a process differ from a program?
30. Differentiate between Preemptive and non-preemptive scheduling.
31. Write the key functions performed by the System software of a computer system.
32. What are Utility Programs? Write any three examples of it.
33. What do you mean by Public-Domain Software?
34. What are the limitations of Multiprocessing?

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35. Explain the term “Disk Management Programs”.
36. Discuss the functions of Operating System.
37. Define Software. Also discuss the types of software
38. Write short note on Assembler.
39. Discuss the advantages and limitation of Machine Level Language.
40. Distinguish between Compiler and Interpreter.

III LONG ANSWER TYPE QUESTIONS:

1. Explain the role of an operating system w.r.t. following:

(a) Process management
(b) Memory Management
(c) File management
(d) Security
(e) Command Interpretation
2. What is the difference between a uni-programming system and a multiprogramming
system? What are their relative advantages and disadvantages?
3. What are the different types of operating systems?
4. What is an operating system? Explain its functions regarding memory management and
file management.
5. What is multithreading? How threads are different from a process?
6. Give the layered architecture of operating system.
7. What is Swapping? How does it help an operating system in memory management?
8. What types of hardware facilities are required for a timesharing computer system?
9. What is Virtual memory? How it is implemented.
10. How multiprogramming is different from multiprocessing?
11. Explain various functions performed by an operating system.
12. What are compilers and interpreters? Discuss their relative advantages and disadvantages.
13. Discuss various types of interfaces in the OS.
14. Name any four popular Operating Systems. Describe any two them in detail.
15. What are the advantages and limitations of High-level languages as compared to machine
and assembly languages?
16. Differentiate between Syntax errors and logical errors found in computer programs.
Which type of error is more difficult to detect and correct?
17. What do you mean by "Linker" and "Loader". Why these are required?
18. Write down the features of HLL and explain any five examples of it.
19. What is Thread and what are the advantages of threads? Explain multi-threading models
in
20. Distinguish between System software and Application Software. Explain different types
of Application software.
21. Write A Short Note On:
(a) Address Bar and Status Bar
(b) Disk Defragmenter
(c) Windows Explorer
(d) Narrator

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 (e) Themes
(f) Calculator
22. What are the advantages of On-Screen keyboard over physical keyboard?
23. What does the term "System Restore" mean? What are restore points and how these are
created and used?
24. Explain the working of an Operating system.
25.
26. What does "Aero Effects" mean in Windows? What is included in these effects?
27. Explain the following commands as per DOS:
Directory, Name, Volume, Label
28. Discuss the Booting Procedure.
29. What do you mean by System Software? Discuss its types.
30. What jobs does Device Management module of an OS perform?
31. What are the advantages of Assembly Language over Machine Language?
32. Explain the functionality of CRT.
33. Explain the different language converters.
34. What are external storage devices? Explain in detail.
35. What is the difference between Raster scan & random scan?
36. Discuss the working of LCD.

UNIT - III
I MULTIPLE CHOICE QUESTIONS:

1. What is gutter margin?

A Margin that is added to the left margin when printing
B Margin that is added to right margin when printing
C Margin that is added to the binding side of page when printing
D Margin that is added to the outside of the page when printing

2. Which of the following is graphics solution for Word Processors?

A Clipart
B WordArt
C Drop Cap
D All of the above

3. A bookmark is an item or location in document that you identify as a name for future
reference. Which of the following task is accomplished by using bookmarks?
A To add anchors in web page
B To mark the ending of a paragraph of document
C To quickly jump to specific location in document
D To add hyperlinks in webpage

4. Thesaurus tool in MS Word is used for

A Spelling suggestions

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 B Grammar options
C Synonyms and Antonyms words
D All of the above

5. AutoCorrect was originally designed to replace _________ words as you type.

A Short, repetitive
B Grammatically incorrect
C Misspelled
D None of the above

6. Which of the following is not one of the three ‘Mail Merge Helper’ steps?
A Merge the two files
B Create the main document
C Set the mailing list parameters
D Create the data source

7. The feature of Word that automatically adjusts the amount of space between certain
combination of characters so that an entire word looks more evenly spaced. What is that
feature called?
A Spacing
B Scaling
C Kerning
D Positioning

8. How can you apply exactly the same formatting you did to another text?
A Copy the text and paste in new location. Then type the new text again.
B Copy the text and click on Paste Special tool on new place
C Select the text then click on Format Painter and select the new text
D All of above

9. Which of the following formulas will Excel Not be able to calculate?

A =SUM(Sales)-A3
B =SUM(A1:A5)*.5
C =SUM(A1:A5)/(10-10)
D =SUM(A1:A5)-10

10. How many characters can be typed in a single cell in Excel?

A 256
B 1024
C 32,000
D 65,535

11. Getting data from a cell located in a different sheet is called …

A Accessing
B Referencing
C Updating

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 D Functioning

12. The auto calculate feature

A Can only add values in a range of cells
B Provides a quick way to view the result of an arithmetic operation on a range of
cells.
C Automatically creates formulas and adds them to a worksheet
D Both (a) and (c)

13. What does the VLOOKUP function do?

A Looks up text that contain ‘v’
B Checks whether text is the same in one cell as in the next
C Finds related record
D All the above

14. What term refers to a specific set of values saved with the workbook?
A Range
B Scenario
C Trend line
D What-if analysis

15. When integrating MS-Word and Excel, Word is usually the

A Server
B Source
C Client
D None

16. When you see a cell with a red triangle in the top right corner, what does this signify?
A There is an error in the cell
B There is a comment associated with the cell
C The font color for text in the cell is red
D A formula cannot be entered into the cell

17. Which function will you use to enter current time in a worksheet cell?
A =today()
B =now()
C =time()
D =currentTime()

18. The autofill feature

A Extends a sequential series of data
B Automatically adds a range of cell values
C Applies a boarder around selected cells
D None of above

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19. Except for the …… function, a formula with a logical function shows the word “TRUE”
or “FALSE” as a result
A IF
B AND
C OR
D NOT

20. What symbol is used before a number to make it a label?

A “ (quote)
B = (equal)
C _ (underscore)
D ‘ (apostrophe)

21. To create an interactive Pivot Table for the web, you use a Microsoft Office Web
component called
A HTML
B Pivot Table Field List
C Pivot Table List
D Pivot Table Report

22. Special effects used to introduce slides in a presentation are called

A effects
B custom animations
C transitions
D present animations

23. Which of the following can you use to add times to the slides in a presentation
A Slice Show menu
B Rehearse timing button
C Slide transition button
D All of the above

24. Which of the following views is the best view to use when setting transition effects for all
slides in a presentation?
A Slide sorter view
B Notes page view
C Slide view
D Outline view

25. Which option can be used to set custom timings for slides in a presentation?
A Slider Timings
B Slider Timer
C Rehearsal
D Slide Show Setup

26. The quickest way to create a PowerPoint presentation is to use the……

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 A Word for windows templates
B Auto creation wizard
C Auto content wizard
D Presentation wizard

27. What lets you to create new presentation by selecting ready-made font color and graphics
effects?
A Presentation Template
B Master Slide
C Design Template
D Animation Scheme

28. The difference between Slide Design and Auto Content Wizard is
A Both are same
B AutoContent Wizard is just the wizard version of Slide Design
C Slide Design does not provide sample content, but Auto Content Wizard provides
sample content too!
D Slide Design asks your choice in steps, but Auto Content Wizard does not let you
make choices

29. When you cut and paste something, it is temporarily transferred to………………………
A Another partition on the hard drive
B Virtual memory
C Swap File
D Clipboard

30. Which of the following is not a part of Slide Design?

A Design Template
B Color Scheme
C Animation Scheme
D Slide Layout

31. What is a motion path?

A A type of animation entrance effect
B A method of advancing slides
C A method of moving items on a slide
D All of the above

32. In the context of animations, what is a trigger?

A An action button that advances to the next slide
B An item on the slide that performs an action when clicked
C The name of a motion path
D All of above

33. Which of the following features makes a document Read-Only so that no modifications
can be made to its content?

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 A Digital Signature
B Mark as Final
C Inspect Document
D Document Comparison

34. Using ……………….. you can deliver your presentation to two monitors.
A Design View
B Layout View
C Presenter View
D Both (a) and (c)

35. When you link data maintained in Excel workbook to a Word document
A The Word document cannot be edited
B The Word document contains a reference to the original source application
C The word document must contain a hyperlink
D The word document contains a copy of the actual data

36. Which tab is not available on left panel when you open a presentation?
A Outline
B Slides
C Notes
D All of above are available

37. Which of the following statements is not true

A You can type text directly into a PowerPoint slide but typing in text box is more
convenient.
B From Insert menu choose Picture and then File to insert your images into slides.
C You can view a PowerPoint presentation in Normal, Slide Sorter or Slide Show
view.
D You can show or hide task pane from View >> Toolbars

38. To start Microsoft PowerPoint application

A Click on Start >> Programs >> All Programs >> Microsoft PowerPoint
B Hit Ctrl + R then type ppoint.exe and Enter
C Click Start >> Run then type powerpnt then press Enter
D All of above

39. Which of the following section does not exist in a slide layout?
A Titles
B Lists
C Charts
D Animations

40. PowerPoint presentations are widely used as

A note outlines for teachers
B project presentations by students

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 C communication of planning
D All of above

41. _______ controls all the main slide control tasks for your presentation.
A Task Pane
B Task Bar
C Control Panel
D None of above

42. Which of the following cannot be toggled from View >> Toolbars?
A Control Toolbox
B Slides
C Revisions
D Reviewing

43. Which of the following pane is not available in Task Pane?

A Getting Started
B Clip Art
C Word Art
D Search Results

44. Which of the following pane is NOT available in Task Pane?

A Slide Design
B Master Slide
C Slide Layout
D Slide Transition

45. A new presentation can be created from

A Blank Presentation
B From Existing Presentation
C From Design Template
D All of above

Ans: (1)(C), (2)(A), (3)(C), (4)(C), (5)(C), (6)(C), (7)(C), (8)(B), (9)(A), (10)(D), (11)(B),
(12)(B), (13)(C), (14)(B), (15)(C), (16)(B), (17)(B), (18)(A), (19)(A), (20)(C), (21)(D),
(22)(C), (23)(B), (24)(A), (25)(C), (26)(C), (27)(C), (28)(C), (29)(D), (30)(D), (31)(C),
(32)(B), (33)(B), (34)(C), (35)(B), (36)(C), (37)(A), (38)(C), (39)(D), (40)(D), (41)(A),
(42)(B), (43)(C), (44)(B), (45)(D)

II SHORT ANSWER TYPE QUESTIONS:

1. What is Microsoft Excel?

2. How Workbook is different from Worksheet?
3. Explain the various ways to start MS-word.
4. What is the difference between "Undo" and "Redo" Command?
5. Describe the components of Mail Merge briefly.

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6. How do I set Tabs?
7. How many rows and columns are there in Microsoft Excel 2016 and later versions?
8. What is the difference between function and formula in MS-Excel?
9. What is Chart in MS-Excel? Why is it important to you an appropriate chart?
10. Are there any Security features available in MS-Word?
11. Define Macro. How is it created?
12. Differentiate between Standard Toolbar and Formatting Toolbar.
13. What is a Word Processor? name any three Word processing Software.
14. Is there any difference between "Save" and "Save as" command? Give the reason in
support of your answer.
15. What is the use of AutoSum Button in a worksheet?
16. Explain the steps to covert Text into a Table in MS-word.
17. Differentiate between Word document and Template.
18. What is Bookmark?
19. Why do we use Bullets and Numbering option in MS-Office?
20. What is the difference between Clip Art and WordArt?
21. Describe briefly any four types of charts used in Excel.
22. Why and when Error occurs in Excel? State any two examples of such errors.
23. What is the meaning of "Legend" in a Worksheet?
24. How can we change the Date Format in a Worksheet?
25. Can a Duplicate Slide be prepared in PowerPoint? If yes, explain how?
26. Explain the procedure of Creating a new Presentation.
27. How will you add graph in your presentation?
28. Why is timing required between slides in PowerPoint?
29. What is word-wrap feature? How is it useful?
30. How a "Cell" is different form "Range of Cells"?
31. Explain the ways in which text can be added into the slides.
32. What is Worksheet Management?
33. Explain the meaning of “Scenarios” in Excel.
34. Differentiate between Standard Toolbar and Formatting Toolbar.
35. What is the use of Margins in a Word document?
36. How you can set password in PowerPoint?
37. How can you show your presentation online in PowerPoint?
38. How you can record a slide show in PowerPoint?
39. How you can create a video in PowerPoint?
40. How you can copy slide master from one presentation to another in PowerPoint?

III LONG ANSWER TYPE QUESTIONS:

1. Explain the AutoCorrect feature in MS-Word.

2. What do you understand by MS-Excel? Discuss its features.
3. Describe the steps involved in Creating a Chart.
4. How Filtering tool is helpful in Worksheet?
5. What is the use of Table in MS-Word? How Formatting of text is done?
6. Explain the different Components of MS-Word?
7. What do you mean by Formatting? What are the various types of Formatting?

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8. Discuss the operations of Insertion and deletion of rows and columns in a worksheet.
9. Explain the steps to format cells in Excel.
10. What is Referencing? What are the different types of Cell References?
11. What is the significance of Header and Footer? How to apply it in MS-word?
12. Explain the Spelling and Grammar Check feature of MS-Word.
13. What is Mail Merge? Write the various steps to perform mail merge.
14. How graphics can be added in a document?
15. What do you mean by MS-Word? Explain its features and advantages.
16. Explain the "Find and Replace" feature of MS-Word. How is it executed?
17. How Formulas are different from Functions? Show the steps involved in inserting
Functions.
18. What is the importance of "Thesaurus" feature?
19. Describe the steps and commands for the following in MS-Word:
(a) Opening a document
(b) Creating a document
(c) Saving a document
(d) Printing a document
20. What is Alignment and Indentation?
21. Describe the following Functions with the help of an example:
(a) Text function
(b) Financial function
(c) Statistical Function
(d) Mathematical Function
22. Ramesh Ahuja wants to store data of his monthly expenditure over the last financial year.
Which of the Office application is most suitable for this purpose?
23. Write formulas for the operations (i) – (iv) based on the spreadsheet given below along
with the relevant cell address:
A B C D E F G
1 SNO Name Science Maths Computers Total Average
2 1 Swati 70 80 87 -- --
3 2 Shruti 90 98 89 -- --
4 3 Neelu 90 90 98 -- --
5 4 Rosy 60 76 79 -- --
6 5 Shreya 50 45 67 -- --
7 Max --
8 Total --

(a) To calculate the Total Marks as sum of Science, Maths & Computers for each student and
display them in column F.
(b) To calculate the average marks for each student and display them in column G.
(c) To calculate the highest marks in Computers and display it in cell E7.
(d) To calculate the total number of students appearing for the Science test and display it in
cell C8.
24. What is Presentation Software? Discuss the features of MS Power Point?
25. What is a Slide? Explain all the slide views in PowerPoint.
26. What is the role played by Masters in PowerPoint? Discuss its types.

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27. Briefly discuss the Anatomy of PowerPoint.
28. Write a note on the following terms w.r.t PowerPoint:
(a) Template
(b) Transitions
(c) Animations
(d) Wizard
29. How can we create Customised Slide Show in PowerPoint?
30. Why do we add multimedia effects in our presentation and also explain how it is done?
31. Explain different slide formatting options of PowerPoint with example.
32. With the help of an example, explain the concept of Pivot Tables and manage scenarios
in Excel.
33. Enlist any five statistical and five Date & time functions which are build in Excel. Show
how they are used.
34. Explain the following w.r.t Excel:
(a) Relative and Absolute Addressing
(b) Graphs
(c) Auto Fill
(d) Auto Sum
(e) What If Analysis
35. Explain the steps for creating an Invitation Letter for your birthday party.
36. How you can use Document Inspector and what is the role of it in PowerPoint
presentation?
37. How you can protect your presentation in PowerPoint?
38. How you can customize slide layout? How you can rehearse the slide show timing in
PowerPoint?
39. How you can embed a chart from Excel to PowerPoint?
40. How you can trim video in PowerPoint 2013? How you can insert online video in
PowerPoint?

UNIT - IV
I MULTIPLE CHOICE QUESTIONS:

1. Which of the following is considered a broad band communication channel?

A Coaxial cable
B Fiber optics cable
C Microwave circuits
D All of above

2. Which of the following is not a transmission medium?

A Telephone lines
B Coaxial cables
C Modem
D Microwave systems

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3. Which of the following is an advantage to using fiber optics data transmission?
A Resistance to data theft
B Fast data transmission rate
C Low noise level
D All of above

4. Which of the following is required to communicate between two computers?

A Communications software
B Protocol
C Communication hardware
D All of above including access to transmission medium

5. Which of the following performs modulation and demodulation?

A Fiber optics
B Satellite
C Coaxial cable
D Modem

6. The process of converting analog signals into digital signals so they can be processed by
a receiving computer is referred to as:
A Modulation
B Demodulation
C Synchronizing
D Digitizing

7. Which of the following communication modes support two-way traffic but in only one
direction at a time?
A Simplex
B half duplex
C three-quarters duplex
D all of the above

8. Which of the following might be used by a company to satisfy its growing

communications needs?
A Front end processor
B Multiplexer
C Controller
D Concentrator
E All of the above

9. Which data communication method is used to transmit the data over a serial
communication link?
A Simplex
B Half-duplex
C Full-duplex
D None of above

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10. What is the minimum number of wires needed to send data over a serial communication
link layer?
A 1
B 2
C 4
D 6

11. Which of the following types of channels moves data relatively slowly?
A wide band channel
B voice band channel
C narrow band channel
D All of the above

12. Most data communications involving telegraph lines use:

A Simplex lines
B Wideband channel
C Narrowband channel
D Dialed service

13. A communications device that combines transmissions from several I/O devices into one
line is:
A Concentrator
B Modifier
C Multiplexer
D Full-duplex line

14. Which of the following communications lines is best suited to interactive

processing applications?
A narrow band channel
B simplex lines
C full duplex lines
D mixed band channels

15. Which of the following is an advantage to using fiber optics data transmission?
A resistance to data theft
B fast data transmission rate
C low noise level
D all of above

16. Which of the following is required to communicate between two computers?

A communications software
B protocol
C communication hardware
D all of above including access to transmission medium

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17. The frequency range of the waves is:-
A 150-285 Hz
B up to 1605 Hz
C 150-285 Hz
D None of the above

18. ISDN stands for:-

A Integrated services digital network
B Integral severe digital network
C Integrated several digital network
D Integral server digital network

19. Which was the first satellite launched by COMSAT_________

A Early bird
B Intelsat I
C ATS-6
D Moon

20. Early Bird was launched in:

A 1965
B 1966
C 1967
D 1968

21. Each set of bit pattern is called

A Code
B Unicode
C Coding
D ASCII

22. Data communications are transfer of data through some

A transmission medium
B linear medium
C Network LAN
D Protocols

23. Both station can transmit and receive data simultaneously in

A simplex mode
B Half duplex mode
C Full duplex mode
D None of Above

24. Data communications are transfer of data through some

A transmission medium
B linear medium
C Network LAN

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 D Protocols

25. Which of the following items is not used in LANs?

A Computer Modem
B Cable
C Modem
D Interface Card

26. An inter-company network which is used to distribute information documents files and
database is called
A MAN
B WAN
C LAN
D Switch

27. In OSI network architecture, the routing is performed by

A Data Link Layer
B Network Layer
C Session Layer
D Transport Layer

28. Hub is associated with __________ network.

A Bus
B Star
C Ring
D Mesh

29. A combination of hardware and software that allows communication and electronic
transfer of information between computer is a
A Network
B Server
C Peripheral
D Backup system

30. ___________________ is the transmission of data between two or more computer over
communication links.
A Data Communication
B Data Networking
C Networking
D Communication

31. Firewall technique, which requires a proxy for each service to be supported through it, is
called …………………..
A Packet Filtering
B Circuit-level gateway
C Application-level gateway
D None of these

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32. Repeater operates in which layer of OSI model?
A Physical Layer
B Network Layer
C Data Link Layer
D Transport Layer

33. The network topology in which devices are not linked to each other and where hub acts
as a central controller is ……………..
A Mesh Topology
B Star Topology
C Ring Topology
D Tree Topology

34. Which of the following cables support the highest bandwidth and faster transmission
rate?
A Fiber Optic Cable
B Coaxial Cable
C UTP Cable
D Twisted-Pair Cable

35. Demodulation is the process of …………………………………………

A Sending a File from one computer to another
B Converting digital signals to analog signals
C Converting analog signals to digital signals
D Echoing every character that is received

36. Computer Network is

A Collection of hardware components and computers
B Interconnected by communication channels
C Sharing of resources and information
D All of the Above

37. Protocols are?

A Agreements on how communication components and DTE's are to communicate
B Logical communication channels for transferring data
C Physical communication channels sued for transferring data
D None of above

38. Two devices are in network if

A A process in one device is able to exchange information with a process in another
device
B A process is running on both devices
C PIDs of the processes running of different devices are same
D None of the mentioned

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39. What is a Firewall in Computer Network?
A The physical boundary of Network
B An operating System of Computer Network
C A system designed to prevent unauthorized access
D A web browsing Software

40. The IETF standards documents are called

A RFC
B RCF
C ID
D None of the mentioned

41. Which data communication method is used to transmit the data over a serial
communication link?
A Simplex
B Half-duplex
C Full duplex
D All of above

42. Each IP packet must contain

A Only Source address
B Only Destination address
C Source and Destination address
D Source or Destination address

43. What is the minimum header size of an IP packet?

A 16 bytes
B 10 bytes
C 20 bytes
D 32 bytes

44. Routing tables of a router keeps track of

A MAC Address Assignments
B Port Assignments to network devices
C Distribute IP address to network devices
D Routes to use for forwarding data to its destination

45. Which of the following is not the External Security Threats?

A Front-door Threats
B Back-door Threats
C Underground Threats
D Denial of Service (DoS)

Ans: (1)(D), (2)(C), (3)(D), (4)(D), (5)(D), (6)(D), (7)(B), (8)(E), (9)(C), (10)(B), (11)(C),
(12)(C), (13)(C), (14)(C), (15)(D), (16)(D), (17)(B), (18)(A), (19)(A), (20)(A) (21)(A),
(22)(A), (23)(C), (24)(A), (25)(C), (26)(C), (27)(B), (28)(B), (29)(A), (30)(A), (31)(C),

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 (32)(A), (33)(B), (34)(A), (35)(C), ), (36)(D), (37)(A), (38)(A), (39)(C), (40)(A), (41)(C),
(42)(C), (43)(C), (44)(D), (45)(C)

II Short Answer Type Questions:

1. What is a computer network? How is it useful?

2. Identify the basic elements of a communication system and the purpose of each.
3. Explain different modes of data transmission.
4. What is a co-axial cable? Where is it used?
5. Differentiate between Analog and Digital Signals.
6. Explain how microwave systems can be used for communication between two distant
stations.
7. What is an optical fiber? How is it used for data communications? What are its
advantages?
8. What is a modem?
9. What is WAN? How is it different from MAN?
10. What is a communication protocol?
11. What the term NIC indicates?
12. Explain the term bandwidth and Baud?
13. Explain the functionality of Data Link Layer.
14. Explain the functionality of Application Layer.
15. What is the purpose of Gateways?
16. Explain the term Multiplexing.
17. How Modulation is different from Demodulation?
18. Explain the mesh topology.
19. What is FTP? List the steps used to upload and download a file using FTP.
20. Give full form of:
(a) HTML (b) URL (c) HTTP (d) WWW (e) FTP (f) SGML
21. Briefly explain
(a) Repeater
(b) Bridge
(c) Router
(d) Gateway
22. How P2P Network is different from Client/Server Network?
23. What are the four possible encoding techniques? Give examples.
24. Between AM and FM, which one gives better noise immunity?
25. Why is layering used in design of Communication Networks?
26. What is the use of IT in Banking and Insurance?
27. How Information technology is used for controlling Inventory?
28. How Firewall prevents unauthorised use to the computer system?
29. Discuss any four types of Virus?
30. What is Digital Signature?
31. How Gateway is different from Router?
32. Differentiate between Web Page and Home Page.
33. What is Electronic mail?
34. How Uploading is different from Downloading?

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35. What are the advantages of Tree Topology?
36. What does Router do in a network?
37. What is the meaning of Bandwidth in Network?
38. What is Network congestion? When does it occur?
39. What do you mean by broadcasting in Networking?
40. Explain computer networking. What is the benefit of the Networking?

III Long Answer Type Questions:

1. Discuss various types of Computer networks.

2. Explain guided media of transmission.
3. Discuss unguided media of transmission.
4. Explain the OSI model.
5. Distinguish between Guided and unguided media.
6. Discuss Data communication system along with its components.
7. Distinguish between asynchronous and synchronous data transmission.
8. What do you understand by WWW? Explain in detail.
9. What are the various advantages and disadvantages of Computer Network?
10. How are communication satellites used? What are the possible advantages and limitations
of using it?
11. What is Internet? Give some uses of Internet. Also state the services provided by Internet.
12. Explain the difference between Internet, Intranet and Extranet.
13. What are the different types of data transmission media? Briefly explain them.
14. What do you mean by term Network Topologies? Briefly explain them.
15. Write short notes on any two of the following: -
(a) IP Address
(b) Modem
(c) TCP
16. What are the advantages of using fiber optics cable compared to copper table?
17. Why do computer networks need Communication Protocols?
18. Discuss the packet principle. How it is different from circuit switching?
19. Two stations on earth want to communicate through radio broadcast but are too far away
to use conventional means. Suggest a method how these two stations can communicate?
20. What is NOS? Explain its Types.
21. What is a Repeater? How is it different from an Amplifier?
22. What do you mean by Internetworking? What is the role of network layer in the Internet?
23. Explain network layer design issues and congestion control.
24. What is Multiplexing and Explain different types of Multiplexing?
25. Explain Modulation and its techniques
26. What do you mean by Digital Signature? How it is used while sending a document across
a network?
27. Explain how Virus spreads in computer system and the preventive measures to counter it.
28. What is cryptography? Discuss its types.
29. Explain the use of Information technology in the following fields:

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 (a) Airlines
(b) Hotel management
(c) Financial System
(d) Inventory Control
30. How identification and authentication help in securing the User’s security?
31. Discuss application of Information Technology in Railways.
32. What are Intranets and Extranets? How do they differ from the web?
33. What are various security threats to a computer system?
34. How Information technology can be used in Education?
35. Explain briefly various Networking Devices.
36. What are the criteria necessary for an effective and efficient network? Explain the factors
that affect the performance of the network?
37. What are the different link types used to build a computer network? Define and explain
the terms Unicasting, Multicasting and Broadcasting.
38. What are the two types of transmission technology available? Explain the differences
between communication and transmission.
39. What are major types of networks and explain? What are the important topologies for
networks?
40. What is the difference between Hub, Switch, and Router? What is a Firewall?

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