CBSE NET COMMERCE QUESTIONS WITH ANSWER

 MOST FREQUENTLY ASKED THEORIES OF WAGES   1.WAGE FUND THEORY Wage fund  theory was propounded by J.S.Mill. According to him, the employers set apart a certain amount of capital to pay wages for labourers. This is fixed and constant. This is called as wages fund. Wage is determined by the amount of wages fund and the total number of labourers. According to J.S.Mill, “wages depend upon the demand and supply of labour or as it is often expressed as proportion between population and capital. By population is here meant the number only of the laboring classes or rather of those who work for hire and by capital, only circulating capital……….. “. Wage rate=Wage fund / Number of labourers An increase in wage rate is possible only by an increase in wage fund or by a reduction in the number of labourers. Thus there exists a direct relation between wage rate and wages fund and inverse relation between wage rate and number of labourers. This theory also states t...

QUESTION SET -12 83. Agriculture income is exempted from income tax under which of  the following section of Income Tax Act ,1961 A. 2(1A) B.10 (1) C.10(2) D.10(4) ANSWER:-B EXPLANATION :- As per section 10(1), agricultural income earned by the taxpayer in India is exempt from tax. Agricultural income is defined under section 2(1A) of the Income-tax Act Agricultural income earned by a taxpayer in India is exempt under Section 10(1).Agricultural income generally means: Agricultural income generally means: (a) Any rent or revenue derived from land which is situated in India and is used for agricultural purposes. (b) Any income derived from such land by agriculture operations including processing of agricultural produce to render it fit for the market or sale of such produce. (c) Any income attributable to a farm house subject to satisfaction of certain conditions specified in this regard in section 2(1A). (d) Any income derived from saplings or seedlings grown...

QUESTION SET-11 76.     BOLT system in the Indian securities market is related to : A. National Stock Exchange B. Bombay Stock Exchange C. Over the counter Exchange of India D. Multi commodity Stock Exchange ANSWER:-B EXPLANATION:-  The economic and capital market in India cannot exist without a stock exchange; there are two main stock exchanges where transactions take place; the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). While all the major transactions take place here, there are over 20 different stock exchanges located across the country. Online trading in India has changed the meaning of trading in the country. With no requirement for a broker, trading has become easier, faster and far more convenient than earlier days. Some of the major financial products and services offered through online trading are mutual funds, equities, general insurance, life insurance, share trading, portfolio management, commoditie...

QUESTION SET -10 (CBSE COMMERCE NET ) 66. . Who formulated the following model for estimating the markets price of equity share? P=D+R/Ke (E-D) /Ke where p =market price of equity share  D=DPS E= EPS E-D=Retained earning per share R=internal rate of return Ke=cost of capital Options:- A.Modigliani and Miller B. Myron Gordon C.James E Walter D. Clarkson and Elliot ANSWER:-C EXPLANATION :-The above formula is propounded by James E. Walter .This formula expresses relationship between dividend policy and value of firm. Walter's model on dividend decision of the company affects its valuation. He states that a firm which pays higher dividend has relatively higher values as compared to those firm which that pay lower dividend. Walter's policy is based on following assumption:- 1.All the investment are financed by internal funds no external fund is raised in the form of equity and debt. 2. firms has infinite life. 3. The firm has constant ...

QUESTION SET-9 ( CBSE COMMERCE NET) 56.Which one is not finance company? A.Hire purchase company B. IRDA C.mutual benefit finance company D.loan companies ANSWER:-B EXPLANATION :-IRDA stands for " Insurance  Regulatory and  Development Authority of India". It is an autonomous, statutory agency.Its main function is to regulate  to regulate and promote the insurance and reinsurance industries  in India. Its headquartered in Hyderabad,  Telangana . Current chairman of IRDA is T.S. Vijayan. It is not a finance  company it is an insurance company. 57.Assertion(A): use of paper money is replaced by plastic money.The future will see the electronic money clearance through satellite networking. Reason(R):RBI is encouraging e banking  codes:- A.(A) is false but(R)is true. B.(A) is true but (R) is false. C.both (A) and (R) are false. D.both (A) and (R) are true. ANSWER:-D EXPLANATION :-Option D is correct RBI is pro...

QUESTION SET-8 (CBSE COMMERCE NET ) 46. SDRs are popularly known as A.currency notes B.paper gold C.silver coin D.gold coin ANSWER:-B EXPLANATION: -SDR are called special drawing rights its introduced by IMF for increasing international liquidity.It is popularly known as paper gold also. SDR was introduced in 1969 with the objective of overcoming the problem of international liquidity. Under this ,each country is allotted quotas which can be exchanged for currency for making international payments .Liquidity means to be able to make payment easily. In international scenario it means making payment for its imports.When a country faces liquidity problem that  means unable to make payment for its import than its balance of payments becomes unfavorable .In such a situation SDR can be used for meeting such deficits. 47.which one is not international institution? A.IMF B.IDA C. IBRD D. TRAI ANSWER:-D EXPLANATION :-Except option D all are interna...