Classical

Advanced Questions - Section 8

11:  

Working capital cycle involves the following

(i) Acquisition of Raw material

(ii) Finished goods

(iii) Receivables

(iv) Cash

(v) Work in progress

Which of the sequence is correct?

A.

(iv), (iii), (i), (v), (ii)

B.

(i), (ii), (iii), (iv), (v)

C.

(i), (v), (ii), (iii), (iv)

D.

(iv), (i), (ii), (iii), (v)

 
 

Option: C

Explanation :

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12:  

Statements:

(i)   Overcapitalisation is desirable

(ii) Undercapitalisation is more desirable

A.

Both are Correct

B.

Both are incorrect

C.

(i) is correct (ii) is incorrect

D.

(ii) is correct (i) is incorrect

 
 

Option: C

Explanation :

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13:  

Which of the following statements is correct concerning the relationships among the firm's functions?

A.

TC = TFC-TVC

B.

TVC = TFC-TC

C.

TFC = TC-TVC

D.

TC = TVC-TFC

 
 

Option: C

Explanation :

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14:  

Which of the following statements is incorrect?

A.

About 80 per cent of agricultural area has irrigation facilities.

B.

About two third area is rain-fed in India.

C.

Productivity per worker in agriculture is much lower than that in industry.

D.

Cropping pattern is quite skewed in India.

 
 

Option: A

Explanation :

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15:  

The economic reforms have failed to

A.

Keep fiscal deficits to the targeted levels.

B.

Fully implement industrial deregula­tion.

C.

Fully open the economy to trade.

D.

All of the above

 
 

Option: D

Explanation :

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