June 2014 - Paper 2

21:  

A concept in retailing that helps explain the emergence of new retailers is called the ________ hypothesis.

A.

Product life cycle

B.

Service assortment

C.

Retail life cycle

D.

'Wheel-of-retailing'

 
 

Option: D

Explanation :

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22:  

A hypothesis test is being performed for a process in which a Type-I error will be very costly, but a Type-II error will be relatively inexpensive and unimportant. Which of the following would be the best choice for alpha (α) in this test?

A.

0.10

B.

0.05

C.

0.01

D.

0.50

 
 

Option: C

Explanation :

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23:  

Assertion (A) : Weighted average cost of capital should be used as a hurdle rate for accepting or rejecting a capital budgeting proposal.

Reason (R) : It is because by financing in the proportions specified and accepting the project, yielding more than the weighted average required return, the firm is able to increase the market price of its stock.

A.

Both (A) and (R) are false.

B.

Both (A) and (R) are true.

C.

(A) is true, while (R) is false.

D.

(A) is false, while (R) is true.

 
 

Option: B

Explanation :

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24:  

According to the recent guidelines (2013) of the Reserve Bank of India the Private Sector Banks are required to have a minimum paid up equity capital of

A.

Rs. 300 crores

B.

Rs. 200 crores

C.

Rs. 400 crores

D.

Rs. 500 crores

 
 

Option: D

Explanation :

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25:  

Assertion (A) : User interface is most critical task in DSS design.

Reason (R) : DSS is used by outside Customers frequently.

A.

(A) is correct, but (R) is wrong.

B.

Both (A) and (R) are wrong.

C.

(A) is wrong, but (R) is correct.

D.

Both (A) and (R) are correct.

 
 

Option: B

Explanation :

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