Hailey College of Commerce
Guidelines for Test
Entry Test (MPhil Commerce 2019)
These questions and content may or may not be representative of questions you may see in
the entrance test. They are meant for the help of the candidates and in no way are a full
representative of level of difficulty or exact type of questions or number of questions
that will be given in the entrance test. The College has the right to change the pattern
without notice at any time.
The test will consist of two major parts in which first part will be based on MCQS of 40 marks.
The second part may comprise of one comprehensive question to judge the candidates
written ability.
The first part of the test will contain MCQs of 6 different categories as given below and in part
2, you may have an essay type question that requires the students to write a comprehensive
answer. The total duration of the test is 90 (45 minutes for Part 1, 45 minutes for part
2).
Subject areas for MCQs
1. Management
2. Marketing
3. Finance
4. Accounting
5. Research
6. Statistics
Part 1
1. The International financial statistics is a compilation of financial data issued by
a. The World Bank
b. IMF
c. New York Stock Exchange
d. WTO
e. UNO
2. Rupee is a currency of
a. Pakistan only
b. Two countries
c. Three countries
d. Four countries
e. More than four countries
3. Which of the following equations properly represents a derivation of the fundamental
accounting equation?
a. Assets + liabilities = owner's equity.
b. Assets = owner's equity.
c. Cash = assets.
d. Assets - liabilities = owner's equity.
e. Cash = Assets + owner’s equity
4. The trading securities owned by a company are:
a. reported on the balance sheet as a current asset.
b. reported on the balance sheet as a noncurrent asset.
c. reported on the balance sheet as a contra-equity account.
d. reported on the balance sheet as a reduction of liabilities.
e. Reported no where
5. Financial statement ratio analysis may be undertaken to study liquidity, turnover,
profitability, and other indicators. To which does the current ratio most relate?
1. Liquidity
2. Turnover
3. Profitability
4. Other indicator
5. none of the above
6. In case where actual increase or decrease in capital such as drawing and profit is
not recorded in capital account, such kind of account is called:
a. fluctuating capital account
b. Fixed capital account
c. Current account
d. all of the above
e. none of the above
7. Why would a firm generally choose to finance temporary assets with short-term debt?
a. Matching the maturities of assets and liabilities reduces risk.
b. Short-term interest rates have traditionally been more stable than long-term interest
rates.
c. A firm that borrows heavily long term is more apt to be unable to repay the debt
than a firm that borrows heavily short term.
d. Financing requirements remain constant.
e. to take risk in order to earn profit
8. Interest rate risk is a type of
a. Credit risk
b. Market risk
c. Operational risk
d. All the above
e. none of the above
9. Arbitrage is
a. Buying and selling in two markets simultaneously
b. A rate of interest
c. A Fee
d. Arbitrage is a dispute
e. None of these
10. Efficiency refers to
a. Additive relationship between costs and benefits
b. Relationship between inputs and outputs
c. Exponential nature of costs and outputs
d. Increasing outputs regardless of costs
e. none of the above
11. Organizational culture is similar to an individuals
a. skills
b. personality
c. Motivation
d. ability
e. rationality
12. Which one of the following is not the specific goal of human resource management
a. attracting applicants
b. retaining employees
c. separating employees
d. motivating employees
e. all of the above
13. Jobs are compensated on the basis of
a. Job analysis
b. Job specification
c. Job description
d. Job worth
e. qualification of employee
14. Which of the following statements is INCORRECT about the sampling
distribution of the sample mean:
a. The standard error of the sample mean will decrease as the sample size increases.
b. The standard error of the sample mean is a measure of the variability of the
sample mean among repeated samples.
c. The sample mean is unbiased for the true (unknown) population mean.
d. The sampling distribution shows how the sample mean will vary among repeated
samples.
e. The sampling distribution shows how the sample was distributed around the
sample mean.
15. While testing a hypothesis, if α = probability of Type I error, then 1 − α
a. Probability of rejecting H0 when H0 is true.
b. Probability of not rejecting H0 when H0 is true.
c. Probability of not rejecting H0 when HA is true.
d. Probability of rejecting H0 when HA is true
e. 1 − β
16. If the correlation between body weight and annual income were high, positive and
significant, we could conclude that:
a. high incomes cause people to eat more food.
b. low incomes cause people to eat less food.
c. high income people tend to spend a greater proportion of their income on food
than low income people, on average.
d. high income people tend to be heavier than low income people, on average.
e. high incomes cause people to gain weight.
Part 2 (Marks 40) Time (45 minutes)
One compressive question may be asked in which writing abilities of the students will be judged
according to their areas of specialization (Finance, Accounting, Marketing, Management etc.)
along with their background knowledge of research they have taken during their courses.
