(For Both School and Private Candidates)

Time: 3 Hours Year: 2009


1. For each of the items (i) - (x) choose the correct answer from among the given alternatives and write its letter beside the item number.

(i) The process of making goods for one's own use is termed:

  1. direct service 
  2. self employed
  3. direct production
  4. self-service
  5. capital goods
Choose Answer :

(ii) Which of the following is the convenient route in the channel of distribution?

  1. Manufacturer → wholesaler →  consumer
  2. Wholesaler →  manufacturer →  retail outlet
  3. Manufacturer →  consumer →  retailer
  4. Consumer → retail outlet →  wholesaler
  5. Manufacturer →  manufacturer outlet → consumer
Choose Answer :

(iii) A limited partnership is a partnership:

  1. which enjoys unlimited liability
  2. in which all the partners enjoy limited liability
  3. in which some partners enjoy limited liability
  4. in which all the partners are general partners
  5. in which the liabilities towards the firms debts is limited
Choose Answer :

(iv)The term "legal tender" means:

  1. the form of money that a creditor must accept from a debtor in settlement of a debt
  2. a right to supply goods to an institution for a period of time
  3. a lawyer can pay money legally to his client
  4. the form of money that a creditor has right to refuse in settlement of a debt
  5. the right to make settlement on my unpaid debts
Choose Answer :

(v)The main purpose of commerce is to:

  1. make profit 
  2. please customers
  3. help manufacturers
  4. bridge the gap between producers and consumers
  5. sell goods to ultimate consumers
Choose Answer :

(vi)Bank rate is the rate of interest charged by:

  1. a commercial bank for short-term loans
  2. a central bank on first-class bills discounted by it
  3. a lender to a borrower
  4. non-banking financial institutions to borrowers
  5. saving banks to borrowers
Choose Answer :

(vii)Which of the following functions is usually not performed by a wholesaler?

  1. Storage
  2. Transport
  3. Packing and branding goods
  4. Extending loans to customers 
  5. Selling goods to consumers
Choose Answer :

(viii)Which one among the following is true regarding regressive tax system?

  1. A higher tax is charged as the income of tax payer increases.
  2. The same amount of tax is charged to all payers irrespective of their incomes.
  3. A tax that takes a higher proportion from lower income earners than from the higher income earners.
  4. A tax that is imposed at every stage of production.
  5. A tax charged by the public to grant permission to a person to perform a service by himself.
Choose Answer :

(ix)Which one among the following covers insurance of property?

  1. Fire insurance
  2. Goods or cash in transit insurance
  3. Marine insurance
  4. General insurance
  5. Insurance agents
Choose Answer :

(x)Which one among the following does not relate to import trade?

  1. Excise duties
  2. Custom duties
  3. Bill of lading
  4. Certificate of origin
  5. Certificate of indemnity
Choose Answer :

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