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COPYRIGHT

The Copyright Act, 1957 came into effect from January 1958. This Act has been amended five times since then,
i.e., in 1983, 1984, 1992, 1994, 1999 and 2012. The Copyright (Amendment) Act, 2012 is the most substantial. The
main reasons for amendments to the Copyright Act, 1957 include to bring the Act in conformity with WCT and
WPPT; to protect the Music and Film Industry and address its concerns; to address the concerns of the physically
disabled and to protect the interests of the author of any work; Incidental changes; to remove operational
facilities; and enforcement of rights. Some of the important amendments to the Copyright Act in 2012 are
extension of copyright protection in the digital environment such as penalties for circumvention of technological
protection measures and rights management information, and liability of internet service provider and
introduction of statutory licences for cover versions and broadcasting organizations; ensuring right to receive
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royalties for authors, and music composers, exclusive economic and moral rights to performers, equal
membership rights in copyright societies for authors and other right owners and exception of copyrights for
physically disabled to access any works.

Prior to the Act of 1957, the Law of Copyrights in the country was governed by the Copyright Act of 1914. This Act
was essentially the extension of the British Copyright Act, 1911 to India. Even the Copyright Act, 1957 borrowed
extensively from the new Copyright Act of the United Kingdom of 1956. The Copyright Act, 1957 continues with
the common law traditions. Developments elsewhere have brought about certain degree of convergence in
copyright regimes in the developed world.

The Indian Copyright Act today is compliant with most international conventions and treaties in the field of
copyrights. India is a member of the Berne Convention of 1886 (as modified at Paris in 1971), the Universal
Copyright Convention of 1951 and the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS)
Agreement of 1995. Though India is not a member of the Rome Convention of 1961, the Copyright Act, 1957 is
fully compliant with the Rome Convention provisions.

The two Internet Treaties were negotiated in 1996 under the auspices of the World Intellectual Property
Organization (WIPO). These treaties are called the ‘WIPO Copyrights Treaty (WCT)’ and the ‘WIPO Performances
and Phonograms Treaty (WPPT)’. These treaties were negotiated essentially to provide for protection of the rights
of copyright holders, performers and producers of phonograms in the Internet and digital era. India is not a
member of these treaties; amendments are being mooted to make Act in compliant with the above treaties in
order to provide protection to copyright in the digital era. Though India is not a member of the WCT and the WPPT,
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the Copyright Act, 1957 is fully compliant with the Rome Convention provisions. The provisions of the Act is also
in harmony with two other new WIPO treaties namely, the Beijing Audiovisual Performers treaty, 2012 and the
Marrakesh Treaty to Facilitate Access to Published Works by Visually Impaired or Otherwise Print Disabled
Persons, 2013.

The Copyright Rules, 2013 was notified on 14 March, 2013 replacing the old Copyright Rules, 1958. The Rules, inter
alia, provide for procedure for relinquishment of Copyright; grant of compulsory licences in the matter of work
withheld from public; to publish or republish works (in certain circumstances); to produce and publish a
translation of a literary or dramatic work in any language; licence for benefit of disabled; grant statutory licence
for cover versions; grant of statutory licence for broadcasting literary and musical works and sound recordings;
registration of copyright societies and copyright registration.
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PREFACE

I am glad indeed to place this title MCQ NTA COMMERCE 3ND EDITION in the hands of those students who are
preparing for UGC NTA exam.

This book is written strictly according to the prescribed according to the new syllabus. In preparing this book, I
have freely drawn the material both from the books of Indian & foreign authors.

The book is divided into 12 units.

I request every teacher and the taught to bring such mistakes to the notice of the author so that they can be
redressed in the next edition.
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I welcome every constructive suggestion that goes in improving the quality of the work and the utility of the book.

2020

Srinagar-J&K

190001

HILAL AHMED

(B.COM/M.COM/PGDBA)

EMAIL-AHMADHILAL850@GMAIL.COM
HILAL AHMED:
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MCQs
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CONTENTS
UNIT-1 BUSINESS ENVIRONMENT
UNIT-2 INTERNATIONAL BUSINESS
UNIT-3 ACCOUNTING & AUDITING
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UNIT-4 BUSINESS ECONOMICS

UNIT-5 BUSINESS FINANCE
UNIT-6 BUSINESS STATISTICS
UNIT-7 BUSINESS MANAGEMENT
UNIT-8 HUMAN RESOURCE
MANAGEMENT
UNIT-9 BANKING & FINANCIAL
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INSTITUTIONS
UNIT-10 MARKETING MANAGEMENT
UNIT-11 LEGAL ASPECTS OF BUSINESS
UNIT-12 INCOME TAX LAW &
PLANNING
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UNIT-1
BUSINESS ENVIREONMENT
1. Assertion (A): Liberalisation means to reduce unnecessary restrictions and controls on business units
imposed by government.
Reason (R): Liberalisation was based on the assumption that market forces could guide the economy in a more
efficient manner than government control.
Codes:
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a. Both (A) & (R) are true and (R) is the correct explanation of (A).
b. Both (A) & (R) are true but (R) is not the correct explanation of (A).
c. (A) is true but (R) is false.
d. (A) is false but (R) is true.
Answer: a

Explaination- Liberalisation means to reduce unnecessary restrictions and controls on business units imposed
by government. It means procedural simplification, relaxing trade and industry from unnecessary bureaucratic
hurdles. Prior to 1991, government has imposed several types of controls on Indian economy e.g., industrial
licensing system; price control, import livence, foreign exchange control etc. Economic reforms made an
attempt to reduce restrictions imposed on the economy.

2. Assertion (A): Privatisation means allowing the private sector to set up more and more of such
industries as were previously reserved for public sector.
Reason (R): Under it, existing enterprises of the public sector are either wholly or partially sold to private
sector.
Codes:

a. Both (A) & (R) are true and (R) is the correct explanation of (A).
b. Both (A) & (R) are true but (R) is not the correct explanation of (A).
c. (A) is true but (R) is false.
d. (A) is false but (R) is true.
Answer: A
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Explaination: privatization of industries means opening the gates of public sector to private sector.

3. Assertion (A): Globalization means linking the economy of a country with the economies of other
countries by means of free trade, free mobility of capital and labour.
Reason (R): It also means inviting multinational corporations to invest in the nation.
Codes:

a. Both (A) & (R) are true and (R) is the correct explanation of (A).
b. Both (A) & (R) are true but (R) is not the correct explanation of (A).
c. (A) is true but (R) is false.
d. (A) is false but (R) is true.
Answer: A

4. Which of the following statement is incorrect:

a. 1938:‘National Planning Committee’ was established under the chairmanship of Jwahar Lal Nehru by
the Indian National Congress. Its recommendations could not be implemented because of the beginning of the
Second World War and changes in the Indian political situation.
6

b. 1944: ‘Gandhian Plan’ was given by Shriman Narayan Agarwal.

c. 1945: ‘People’s Plan’ was given by M N Roy.
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d. 1950: ‘Sarvodaya Plan’ was given by J P Narayan. A few points of this plan were accepted by the
Government.
e. None of the above
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Answer: E

5. Which one of the following is correct:

a. The Planning Commission was set – up on March 15, 1950 under the chairmanship of JL Nehru, by a
resolution of Union Cabinet.
b. It is an extra – constitutional, non – statutory body. (i.e., No provision in Constitution for its
formulation.)
c. It consists of Prime Minister as the ex – officio Chairman, one Deputy – Chairman appointed by the PM
and some full time members.
d. All of the above

Answer: d

6. Assertion (A): Disinvestment trends to arouse opposition from employees.

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Reason (R): It may increases the cost of production.

a. Both A & R are true
b. A is true but R is false
c. Both A & R are false.
d. A is false but R is true.
Answer: c

7. Assertion (A). The GATT applied only to trade in merchandise goods.

Reason (R). the WTO covers trade in goods, services and trade in ideas or intellectual properties.
a. Both A & R are true and R is the correct explanation of A.
b. Both A & R are true and R is not the correct explanation of A.
c. A is true but R is false.
d. A is false but R is true.
Answer: A

8. Assertion (A). Private location process leads to change in management with change in
ownership.
Reason (R). Change in management is not a necessary condition for the process of privatization.
Code:
a. Both A and R are correct
b. A is correct but R is incorrect
c. A is incorrect but R is correct
d. Both A & R are incorrect.
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Answer: B

9. Consider the following statements

I. Economic development is a broader and normative concept. It concerns with structural change in
economy
II. Economic growth is a narrow concept. It concerns with increase in the economy’s output.
Which of the statement given above is or are correct?

a. Only I b. Only II c. Both I & II d. None of these

Answer: c

10. The term ‘Hindu rate of growth’ refers to the 3.70% per annum growth rate achiewed by the
Indian economy over the first six five year plans’. The term was coined by
a. JN Bhagwati b. KN Raj c. Raj Krishna d. S. Chakravarty
Answer: c

11. The rolling plan concept in Nation Planning was introduced by

a. Indira Gandhi Government
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b. The National Government

c. The Janata Party Government
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d. Rajiv Gandhi Government

Answer: c
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12. Assertion (A). Industrial policy 1991 initiated liberalization of Indian economy.
Reason (R). Industrial growth was very slow before 1991.
Code:
a. Both A & R are true & R is the correct explanation of A.
b. Both A & R are true but R is not the correct explanation of A.
c. A is true but R is false.
d. A is false but R is true.
Answer: A

13. Assertion (A). Domestic competition has increased since 1991.

Reason (R). Except for 7 industries, rest has delicenced.
Code:
a. Both A & R are true and R is the correct explanation of A.
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b. Both A & R are true but R is not the correct explanation of A.

c. A is true but R is false.
d. A is false but R is true.
Answer: A

14. Match the following two lists of Statements:

List –I List-II
a. When one company purchase other one i. Conglomeration merger
b. Merger between two companies having no ii. Consolidation merger.
common between areas.
c. Merger between two companies that sell the iii. Purchase merger
same products in different markets.
d. Two companies are bought and combined iv. Market extention merger.
under now entity.

Codes:

A b c d

a. Iii iv I ii
b. Iv iii ii I
c. Ii I iii iv
d. I ii iii iv
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Answer: C

15. Match the following legislations with the year of their enactment;
a. Industries (Develop & Regulation) Act. i. 1969
b. Foreign exchange management act ii. 1951
c. Securities exchange board of India Act iii. 1999
d. MRTP act iv. 1992
Codes:

A b c d

a. I iii iv ii
b. Ii iv I iii
c. Iii I iv ii
d. Iv iii ii i
Answer: A

16. Match the following

8

List-I List-II

a. Focus on social environment 1. Traditional theorist

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b. Focus on physical environment 2. Human relationists

c. One person one superior 3. Unity direction
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d. One head one plan 4. Unity of command

Code:

A b c d

a. 1 2 3 4
b. 2 1 4 3
c. 3 2 1 4
d. 4 3 2 1
Answer: b

17. Match the following components of Business environments?

a. Economic environment i. Exim policy
b. Social environment ii. Customs
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c. Political environment iii. Social values

d. Legal environment iv. Business law and banking act
Code:

A b c d

a. I ii iii iv
b. Iii iv ii i
c. Iii I ii iv
d. I ii iv iii
Answer: A

18. Arrange the following Acts in the order in which they came into force.
i. The monopolies restrictive trade pracrices act
ii. Indian contract act
iii. The sales of goods act
iv. The foreign exchange management act
Codes:

a. Ii iii I iv
b. Iii I iv ii
c. I ii iii iv
d. Iv iii ii i
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Answer: b

19. Consumers have the rights

i. To be protected against goods and services that are hazardous to life and property.
ii. To assured wherever possible access to a variety of goods and services at national prices.
Code:

a. Both I & ii are correct.

b. Both I & ii are wrong.
c. Only I is correct.
d. Only ii is correcr.
Answer: A

20. Which of true for existing economic and industrial policies of Indian government.
i. FERA was abolished
ii. MRTP was abolished
iii. Cash compensatory support for export can abolished.
iv. Industrial licening (except a few goods) was abolished.
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Code:
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a. I, ii, iii and iv

b. I, iii and iv
c. Only iii and iv
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d. Only ii and iii

Answer: c

21. Which can be a method of privatization?

i. Disinvestment
ii. Denationalization
iii. Purchasing share
iv. Take over
v. Merger
Code:

a. I & ii b. I, ii and iii c. ii, iv, and v d. all of the above

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Answer: a

22. Which one of the following committees recommended the abolition of reservation of item of
small scale sector in industry?
a. Abid Hussain committee c. Nayak committee
b. Narsimhan committee d. Rakesh Mohan committee
Answer: a

23. Why is government of India disinvesting its equity in the central public sector enterprises?
i. The government intends to use the revenue earned from the disinvestment mainly to pay back the
external debt.
ii. The government no longer intends to retain the management control of the CPSEs.
Which of the statements given above are correct?
a. Only I b. only ii c. both I & ii d. neither I nor ii
Answer: d
24. Consider the following statements
i. Privatization of public sector units occurs, when government sells 5% of its share.
ii. Abid Hussain committee recommended the abolition of reservation of items of small scale sector in
industry
Which of the statements given above are correct?
a. Only I b. both I & ii c. only ii d. neither I nor ii
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Answer: c
25. Which one of the following is correct:
a. Chalapathi Rao Committee- Regional Rural Banks In India
b. Bhagwati Committee- SEBI Takeover Regulations
c. N K MITRA Committee- Investor Protection
d. All of the above

Answer: D
26. Which of the following statement is correct
Statemet-I: In the budget of 1997-98, the government had proposed to replace FERA-1973 by FEMA
(Foreign Exchange Management Act).

Statement-II: It came into force on June 1, 2000

Codes:
10

a. Both the statements are correct.

b. Both the statements are incorrect.
c. Statement-I is correct but statement-II is incorrect
Page

d. Statement-II is correct but statement-I is incorrect.

Answer: a
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27. Privatization of ownership through scale of equity shares is called

a. Denationalization c. Contracting
b. Disinvestment d. none of these
Answer: b
28. Which of the following is not a business opportunity generated by globalization?
a. Access to low cost labour.
b. Cheap international transport
c. Currency crisis
d. Less stringent regulations of the business environment
Answer: c
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29. Globalization isbeneficail for firms because

a. It protects them against foreign competition
b. It cushions them from the effects of events in other countries.
c. It opens up new market opportunities.
d. It increases the risk and uncertainty of operating in globalizing world economy.
Answer: c
30. Which among these is not a method of Privatisation?
a. Denationalization c. Sale of business
b. Franchising d. All of these
Answer: c
31. ‘the age of discontinuity’ (1969) has been authored by
a. John Drydon c. Peter F Druker
b. Cyril Debydeen d. None of these
Answer: c
32. Which one is not the main objective of fiscal policy in India?
a. To increase liquidity in the economy
b. To promote price stability
c. To minimize the inequalities of income and wealth.
d. To promote employment opportunities.
Answer: a
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33. Which of the following is not an objective of competition Act 2002

a. Prohibitionof abuse of dominant position.
b. Prohibition of restrictive trade practices
c. Prohibition of anti competitive agreement
d. Regulation of combinations
Answer: b
34. The competition Bill 2001 has been introduced to amend the
a. MRTP Act 1969
b. Company regulation act 1954
c. Industrial licensing act 1951
d. None of the above
Answer: a
35. The role of consumerism has
a. Consumer education
b. Product rating
11

c. Liaison with government and with producers

d. All of the above
Answer: c
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a) binomial, b) poisson,

c) normal, d) all of these.

Ans : d
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