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June 2010 - Paper 2

1:  

In which of the industrial policies were the following major changes introduced?

- Liberalisation of licensed capacity.

- Relaxation of industrial licensing.

- Industrialisation of backward areas.

A.

Industrial Policy Resolution, 1956

B.

Industrial Policy Statement, 1977

C.

Industrial Policy of 1980

D.

Industrial Policy of 1991.

 
 

Option: D

Explanation :

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2:  

Under kinked demand model, the demand curve for the firm's product is drawn on the assumption that

A.

All rivals charge the same price which is charged by the oligopolist.

B.

All rivals charge a price independent of the price charged by the oligopolist.

C.

All rivals follow the oligopolist upto certain price but beyond that they do not.

D.

All oligopolists charge the price as independent sellers.

 
 

Option: D

Explanation :

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3:  

Assertion (A): Management is a continuous process involving the integration of all functions.

Reason (R): Managers first plan, then organise and finally perform the function of controlling.

Read the above statements and select the correct answer from the code below:

A.

Both (A) and (R) are correct; and (R) is correct explanation of (A)

B.

Both (A) and (R) are correct, but (R) is not a correct explanation of (A).

C.

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

D.

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

 
 

Option: A

Explanation :

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4:  

Which one of the following is not used to estimate cost of equity capital?

A.

External yield criterion

B.

Dividend plus growth rate

C.

Equity capitalisation approach

D.

Capital asset pricing model

 
 

Option: A

Explanation :

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5:  

Which one of the following is the main objective of Unit Trust of India?

A.

To mobilize the savings of high income groups.

B.

To mobilize the savings to low and high income groups.

C.

To mobilize the savings of corporates.

D.

To mobilize the savings of low and middle income groups.

 
 

Option: D

Explanation :

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