Foundation Mock Test – 1st
Test Booklet No. – 110013
(1)
Ans. c
Explanation:
(2)
Ans. a
Explanation:
(3)
Ans. a
Explanation:
(4)
Ans. d
Explanation:
(5)
Ans. d
Explanation:
(6)
Ans. b
Explanation:
Avg. Profit =
Duration : 1 ½ Hours
Total Marks : 100
Date: - 01.10.2015
42,000  39,000  45,000
3
= Rs. 42,000
Goodwill = 42,000x2 = Rs. 84,000
(7)
Ans. b
Explanation:
D's share of goodwill =
Goodwill of firm =
5,000 
10,000 
4
1
2
1
= 10,000
= Rs. 40,000
As D's share is 1/4th
(8)
Ans. a
Explanation:
Total Capital of firm on basis of 'C's capital
12,000 
4
1
= Rs. 48,000
Actual capital = 10,000+20,000+12,000 = Rs. 42,000
Goodwill = 48,000 – 42,000 = Rs. 6000
(9)
Ans. a
Explanation:
Half of goodwill withdrawl in =
9,000 
1
2
= 4,500 withdrawl. Is in ratio 2:1
P = 4,500x2/3 = Rs. 3000
Q = 4,500x1/3 = Rs. 1500
(10)
Ans. c
Explanation:
Adjustment entry is to be passed
Gaining partners Capital A/c Dr. (in gaining Ratio)
To sacrificing partners Capital A/c (in Sacrificing Ratio)
(11)
Ans. a
Explanation:
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1 1 4
 
1 4 3
4
45,000   60,000
3
Old partners Capital share =
Total firms capital =
X's share = 60,000x1/4 = Rs. 15,000
(12)
Ans. b
Explanation: Surrender Value
(13)
Ans. a
Explanation: In case of retirement, surrender value is distributed among partners.
(14)
Ans. b
Explanation:
Profit for April, May, June D's share of profit =
(15)
Ans. d
Explanation:
Avg. profits =
24,000 
3 4

12 16
= Rs. 1,500
3,29,000  3,46,000  4,05,000
3
Rs. 3,60,000
Goodwill = 3,60,000x2 = Rs. 7,20,000
A's share =
7,20,000 
5
 3,60,000
10
Payment ratio = 3:2
B's contribute =
C's contribute =
3
 2,16,000
5
2
3,60,000  = 1,44,000
5
3,60,000 
(16)
Ans. d
Explanation:
(17)
Ans. b
Explanation:
(18)
Ans. a
Explanation:
(19)
Ans. d
Explanation:
(20)
Ans. b
Explanation:
(21)
Ans. b
Explanation:
(22)
Incorporation has a major disadvantage of _____________
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(a)
Capacity to sue
(b)
Formalities & expenses
(c)
Separate property
(d)
Flexibility & autonomy
Ans. b
Explanation:
(23)
Ans. b
Explanation:
(24)
Ans. c
Explanation:
(25)
Ans. d
Explanation:
(26)
Ans. b
Explanation:
(27)
Ans. a
Explanation:
(28)
Ans. a
Explanation:
(29)
Ans. a
Explanation:
(30)
Ans. a
Explanation:
(31)
Ans. d
Explanation:
By Using the formula of Arc Elasticity
Ed=
q1  q2 p1  p2

q1  q2 p1  p2
Q1 = 500
Q2 = 300
P1 = 10
P2 = 15
500  300 10  15

500  300 10  15
200 25

Or
800  5
5
=
Or -1.25 or 1.25
4
Or
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(Minus Sign can be ignored)
(32)
Ans. a
Explanation:
Since there is positive relationhip in case of substitute goods. So if price of substitute
of x commodity falls the demand of x commodity also falls subsequently.
(33)
Ans. b
Explanation:
Since there is direct relationship between income and demand
(34)
Ans. c
Explanation:
Since electricity can be putted to numbers of uses and more the uses of a commodity
more is the elasticity.
(35)
Ans. c
Explanation:
Since inferior goods have negative relationship in case of income because when
income increases then consumer becomes able to purchase superior goods.Hence he
purchases less quantity of inferior goods.
(36)
Ans. d
Explanation:
Since “giffen goods” is a exception to law of demand hence the relationship between
price and quantity demand of giffen goods is positive.
(37)
Ans. a
Explanation:
Since if price of petrol increases quantity demanded of car goes down hence cross
elasticity is negative.
(38)
Ans. c
Explanation:
These two commodities were termed as giffen goods by Sir Robert Giffen. This is an
exception of law of demand
(39)
Ans. c
Explanation:
Because price of tea
And due to this
Qd of coffee also
Hence the cross elasticity is positive
(40)
Ans. a
Explanation:
Since Cross Elasticity is
ec = Change in quantity
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demand of " X" commodity
% Change in price of
“Y” commodity
ec =
40%
 1. 6
25%
Since the relationship between complementary goods is negative = -1.6
P Q
(41)
Ans. b
Explanation: Hicks & Allen
(42)
Ans. b
Explanation: Demand Schedule
(43)
Ans. a
Explanation:
(44)
Ans. c
Explanation: 1.35
(45)
Ans. a
Explanation: Elasticity of demand
(46)
Ans. a
Explanation:
Let Price Index No of 1991 is 100%
And Price Index No. of 1998 is 355%
 Increase in price index No will be 355 – 100 = 255%
(47)
Ans. b
Expnanation:
Cost of living index No goes up from 110 to 200 and salary of the worker is raised Rs.
3250 to Rs. 5000.
 Real salary will be =
(48)
Ans. c
Explanation:
Year
1990
2000
200
 3250  5909.09 Rs.
110
Price
100%
100%
Quantity
160% = 1.60
70% = 0.70
Value = Price × Quantity
 V1990,2000  (1.60  0.70)  100
= 112%
 +12% Value will be changed.
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(49)
Ans. d
Explanation:
Using Formula : Real wage =
 1680 
Money wage
100
Pr ice Index
Money Wage
100
 215

100 

 120

 Money Wage =
215
1680  3010 Rs.
120
 Loss of worker = 3010 – 3000 = 10 Rs.
(50)
Ans. a
Explanation:
Purchasing Power of a Rupee =
=
(51)
100
Price Index
100
 0.40
250
Ans. a
Explanation:
Laspeyre's Price Index is based on base year Quantity.
P Q
Since Formula is L  1 0 100
P0Q0
Hence Q0 is constant.
(52)
Ans. d
Explanation:
Irwin Fisher's Index Number is the geometric mean to Laspeyre's and paasche's Index No.
 F  LP  100
 F
P1Q0 P1Q1

 100
P0 Q0 P0 Q1
(53)
Ans. b
Explanation:
Time Reversal Test is P01  P10  1
Laspeyre's and Paasche's Index No do not satisfy this test.
(54)
Ans. d
Explanation:
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Real wage =
(55)
200
 330  660 Rs.
100
Ans. d
Explanation:
L = 324
F = 216
F  LP
 216  324  P
 46656  324P
46656
324
 P  144%
 P
(56)
Ans. c
Explanation:
P2000, 2003 
=
(57)
P2003 100
P2000
60 100
 400%
15
Ans. b
Explanation:
Weighted Index No. =
=
RW
W
13,400
134
= 100%
(58)
Ans. d
Explanation:
(59)
Ans. c
Explanation: Office order
(60)
Ans. a
Explanation: Office Notes
(61)
Ans. a
Explanation: Memorandum
(62)
Ans. d
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Explanation: Both (b) and (c)
(63)
Ans. a
Explanation:
Inter-departmental: By this managers share their views within the organization.
(64)
Ans. a
Explanation: 1965
(65)
Ans. a
Explanation: @
(66)
Ans. b
Explanation: Protocol
(67)
Ans. b
Explanation: 1972
(68)
Ans. b
Explanation: Search
(69)
Ans. b
Explanation:
Since HRM is related to workforce.
(70)
Ans. d
Explanation:
Since all are the features of personnel management.
(71)
Ans. d
Explanation:
Since all are covered into the nature of HRM.
(72)
Ans. d
Explanation:
Since all above mentioned are the limitations of HRM.
(73)
Ans. a
Explanation
This definition was given by Edwin B Flippo.
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(74)
Ans. a
Explanation:
Since training is to impart technical knowledge to employees.
(75)
Ans. a
Explanation:
Since Eric Borne has developed the “Transactional Analysis”.
(76)
Ans. c
Explanation:
It was given by Frediek Herzberg.
(77)
Ans. b
Explanation:
Since informal leaders do not have formal authority.
(78)
Ans. b
Explanation:
Since Lewin Leppett and white conducted leadership studies in 1939.
(79)
Ans. a
Explanation:
Since under this method behavioral aspect is compared.
(80)
Ans. d
Explanation:
Since ‘PAC’ are stages of Transactional Analysis.
(81)
Ans. d
Explanation: Joseph Schumpeter
(82)
Ans. c
Explanation: Peter Drucker
(83)
Ans. b
Explanation: Flexibility
(84)
Ans. c
Explanation:
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According to Maslow, thrill-seekers obviously love being entrepreneurs and much
depends on them only.
(85)
Ans. d
Explanation:
According to Napoleon hill an Entrepreneurs is his own boss.
(86)
Ans. c
Explanation:
He likes innovation and enjoys working on something new.
(87)
Ans. b
Explanation: Healer
(88)
Ans. c
Explanation: Both (a) and (b)
(89)
Ans. c
Expertise
(90)
Ans. c
It triggers a creative idea which generates a series of innovative events.
(91)
Ans. d
Explanation:
Since all are features of business environment.
(92)
Ans. d
Explanation:
“CPP”stands for “captive power plant”.
(93)
Ans. a
Explanation:
Since external factors cannot be controlled.
(94)
Ans. a
Explanation:
“T” stands for Technology.
(95)
Ans. d
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Explanation:
Since all are linked with privatisation.
(96)
Ans. c
Explanation:
Since under HUF registration is not required.
(97)
Ans. d
Explanation:
Since all of the above statements are correct.
(98)
Ans. a
Explanation:
Since LLP means “limited liability partnership”
(99)
Ans. b
There were 3 departmental enterprises railways, post and telegraphs and defense
production.
(100) Ans. a
Explanation:
“ILO” stands for “International labour organization.”
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