June 2010 - Paper 2

21:  

Match the following two lists of statements.

List-I

(1) Conglomeration merger

(2) Consolidation merger

(3) Purchase merger

(4) Market extension merger

List-II

I. When one company purchases another one.

II. Merger between two companies having no common business areas.

III. Merger between two companies that sell the same products in different markets.

IV. Two companies are bought and combined under new entity.

A.

I II III IV

3  4  1  2

B.

I II III IV

4  3  2  1

C.

I II III IV

2  1  3  4

D.

I II III IV

1  2  3  4

 
 

Option: D

Explanation :

Click on Discuss to view users comments.

Write your comments here:



22:  

As per indifference curve and price line, a consumer will not be in equilibrium when

A.

Ratios of marginal utilities and prices of the respective goods are equal.

B.

Ratio of marginal utilities of the two goods is equal to the ratio of their respective prices.

C.

The marginal rate of substitution is equal to the ratio of prices of the two goods.

D.

The marginal rate of substitution is decreasing.

 
 

Option: B

Explanation :

Click on Discuss to view users comments.

Write your comments here:



23:  

Staffing includes

(i) Training (ii) Appraisal

(iii) Placement (iv) Directing

Which of the following is correct?

A.

(i) and (iii)

B.

(i), (ii) and (iii)

C.

(ii) and (iii)

D.

(i), (ii), (iii) and (iv)

 
 

Option: D

Explanation :

Click on Discuss to view users comments.

Write your comments here:



24:  

34. Match the following:

List-I

I. The presence of fixed cost in the cost structure of a firm.

II. The presence of fixed return funds in the capital structure of a firm.

III. Impact of changes in sales on the earnings available to shareholders.

List-II

1. Super-leverage

2. Operating leverage

3. Financial leverage

A.

I II III

1  2  3

B.

I II III

2  3  1

C.

I II III

3  2  1

D.

I II III

1  3  2

 
 

Option: D

Explanation :

Click on Discuss to view users comments.

Write your comments here:



25:  

Capital adequacy norm helps to Banks

(i) For strengthening capital base of Banks

(ii) For sanctioning more loans.

A.

Both (i) and (ii) are correct

B.

Both (i) and (ii) are incorrect

C.

(i) is correct, but (ii) is incorrect.

D.

(i) is incorrect, but (ii) is correct.

 
 

Option: A

Explanation :

Click on Discuss to view users comments.

Write your comments here: