CWA ICWA Question Papers Foundation Economics and Business Fundamentals Dec 2008

CWA ICWA Question Papers  Foundation

Economics and Business Fundamentals Dec 2008


This Paper has 68 answerable questions with 41 answered.

Syllabus 2008
Time Allowed : 3 Hours Full Marks : 100
The figures in the margin on the right side indicate full marks.
SECTION I (60 Marks)
Answer Question No. 1 which is compulsory and any two from the rest.
1. (a) Answer the following : 1×9
(i) Name the author of “Weath of Nations”.
(A) Adam Smith
(B) Alfred Marshall
(C) J.K.Mehta
(D) A.C.Pigou
(ii) Economics is
(A) Science
(B) An Art
(C) Science and an Art
(D) Psychology
(iii) Deductive Method of Economic Analysis is based on
(A) General to Particular
(B) Particular to General
(C) Neutral
(D) None of the above
(iv) Money supply constitutes
(A) Rupee notes and coins with the public
(B) Credit cards
(C) Traveller’s cheques
(D) All the above
(v) Consumers surplus was propounded by
(A) Alfred Marshall
(B) A.C. Pigou
(C) J.R.Hicks
(D) J.M.Keynes
(vi) Production function is
(A) Input–output relationship
(B) Creation of utility
(C) Want satisfying capacity
(D) None of the above
(vii) Homogeneous product is the characteristic of
(A) Perfect competition
(B) Monopoly
(C) Monopolistic competition
(D) Oligopoly
(viii) Non–price competition is the characteristic of
(A) Monopoly
(B) Duopoly
(C) Oligopoly
(D) Imperfect competition
(ix) A producer or seller selling its commodity at different prices to different customers is
(A) Discriminating Monoploy
(B) Monopoly
(C) Perfect competition
(D) Duopoly
(b) Fill in the blanks : 1×12
(i) NNP at market price is GNP _______ depreciation of capital stock. (2)
(ii) GNP is a wider concept than _______. (1)
(iii) Average propensity to consume is _______ to c/y. (0)
(iv) The production of foodgrains according to Malthus increases at an _______ progression. (1)
(v) Over population is corrected by preventive checks and _______ checks. (1)
(vi) The formula for the calculation of optimum population is _______. (1)
(vii) Fisher’s equation is _______. (1)
(viii) Money is created by the _______ bank. (1)
(ix) Demand Pull inflation is when aggregate demand _______ aggregate supply. (1)
(x) When there is continuous rise in price level, it is called _______. (1)
(xi) Cheap money policy is followed by central bank during _______. (0)
(xii) Economy in administration is one of the _______ measures during inflation. (0)
(c) State which of the following statement is “True” and which is “False”.: 1×9
(i) Credit is created by commercial banks. (0)
(ii) Adequate liquidity is an essential condition of a sound banking system. (1)
(iii) Size of C.R.R. does not affect the credit creation of commercial banks. (0)
(iv) Central bank is the custodian of foreign exchange reserves. (1)
(v) Expansion and contraction of credit are affected by quantitative techniques of credit control. (0)
(vi) Use and direction of credit are affected by qualitative techniques of credit control. (0)
(vii) Balance of trade comprises of exports and imports. (0)
(viii) Balance of payments is broader than balance of trade. (0)
(ix) Invisible items are included in exports and imports. (0)
(d) Define the following terms in not more than two lines: 1×6
(i) Direct Tax, (0)
(ii) Conon of Economy, (0)
(iii) Deficit Financing, (0)
(iv) Fiscal Policy, (0)
(v) Monetary Policy, (0)
(vi) Progressive Tax. (0)
2. Write short notes on the following: 6+6
(a) Functions of Money (0)
(b) Fixed costs and Variable costs. (0)
3. Describe the essentials of a sound banking system and salient features of International trade. 6+6 (0)
4. Discuss the Canons of Taxation. 12 (0)
SECTION II (40 Marks)
Answer Question No. 5 which is compulsory and any two from the rest.
5. (a) Answer the following : 1×6
(i) All business activities fall under the categories of
(A) Industry
(B) Trade
(C) Commerce
(D) All the above
(ii) Salient features of a co–operative are
(A) Voluntary Association
(B) Service Motive
(C) Equality
(D) All the above
(iii) Characteristics of Joint Stock Company are
(A) Incorporated Association
(B) Voluntary Association
(C) Artificial legal person
(D) All the above
(iv) Which is not the merit of state enterprise?
(A) Easy formation
(B) Acceleration of economic growth
(C) Balanced regional development
(D) Economy
(v) Advantages of limited partnership are
(A) Enables people to invest
(B) Mobilises larger financial resources
(C) More stable
(D) All the above
(vi) Which is not the characteristic of Joint Hindu Family Business?
(A) No registration
(B) Only male members
(C) Status arises not born in the family
(D) Managed by Karta.
(b) Fill in the blanks: 1×6
(i) A chartered company is incorporated under _______. (1)
(ii) Unlimited liability of a company means _______ on the liability of its members. (0)
(iii) A private limited company is better placed to maintain _______ of the affairs of business. (1)
(iv) The promoter must not make any _______ from the company that he has promoted. (1)
(v) Memorandum of Association is one of the basic _______ of the company. (0)
(vi) The first official general meeting of shareholders is called _______ meeting. (1)
(c) State which of the following statement is “True” and which is “False”: 1×6
(i) One of the social responsibilities of a business is to protect consumer interest. (1)
(ii) SWOT analysis deals with strength, weaknesses, opportunities and threats of a business. (1)
(iii) W.T.O. is not a part of international environment. (1)
(iv) Clarity of message is one of the principles of effective communication. (1)
(v) Motivation to employees is not an objective of communication. (1)
(vi) Sending Written message through telecommunication link is called e–mail. (1)
(d) Define the following terms in not more than two lines: 1×6
(i) Stock Exchange, (1)
(ii) Jobbers, (1)
(iii) Stag, (1)
(iv) Contract note, (1)
(v) Brokers, (1)
(vi) Forward delivery contracts. (0)
6. Write short notes on: 4+4
(a) Registration of partnership; (0)
(b) Salient features of public company. (0)
7. Discuss the various objectives of a business. 8 (0)
8. Describe the essential elements in the process of an effective communication system. 8

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