UGC NET Management Previous Year Solved Papers - July 2018

21. When an employee is willing to go above and beyond what is typically expected in his or her role, it is known as:

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22. Indicate the correct code for the following types of decisions to be incorporated within financial decisions.
(a) Investment decisions
(b) Financing decisions
(c) Pricing decisions
(d) Profit distribution decisions

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23. In case the profitability index of an investment is equal to one (= 1), the net present value of the investment will be:

  • Option : D
  • Explanation : The profitability index is the ratio of the total PV of future cash inflows to the initial investment, that is, PV/I. This index is used as a means of ranking projects in descending order of attractiveness.
    Decision rule: If the profitability index is greater than 1, then accept the project.
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24. For the following two statements of Assertion (A) and Reason (R) select the correct code:
Assertion (A): Risk analysis of capital investment is the most complex and controversial area in finance.
Reason (R): Capital investment decisions are based on estimates of future cash inflows.

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25. Acquisition of firms is the same as:
(a) a merger
(b) an amalgamation
(c) a takeover
(d) an absorption
Select the correct code.

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Related Quiz.
July 2018