CWA/ICWA Foundation :: Economics and Business Fundamentals: June 2005

C-3(EBF)
Revised Syllabus

Time Allowed : 3 Hours Full Marks : 100
The figures in the margin on the right side indicate full marks.

SECTION I (50 marks)
Answer Question No. 1 which is compulsory and any two from the rest.
Marks
1. (a) Answer the following:
(i) In a monopoly, the monopolist can
(A)Control supply and demand;
(B)Control price or supply;
(C)Control price and demand;
(D)Control price and supply.
(ii) The concept of Quasi Rent is given by
(A)Ricardo;
(B)Joan Robinson;
(C)Marshall;
(D)Robbins.
(iii) The difference between GDP at factor cost and GDP at market price is
(A)Depreciation;
(B)Net factor income from aboard;
(C)Net indirect taxes and subsidies;
(D)Direct taxes.
(iv) Effective demand is
(A)Demand exceeds supply;
(B)Aggregate demand is equal to aggregate supply;
(C)Elasticity of demand for a product is high;
(D)Difference between actual and forecast demand.
(v) Progressive taxation means
(A)Tax burden falls more heavily on similar income;
(B)Tax burden increases with income;
(C)Large quantity of tax evasion;
(D)Large quantity of tax avoidance.
 1x5=5
(b) Fill in the blanks:
(i)A firm maximises its profits where its marginal revenue is equal to its ___________.
(ii)The rate of interest charged by the Central Bank is called the ____________.
(iii)The value of marginal propensity to consume is always ___________ than unity.
(iv)When even displacements of large number of workers cannot affect output, it implies the existance  of ___________.
(v)Industrial Finance Corporation has the objective to provide funding for _________ and ________  terms.
 1x5=5
(c) Define the following terms in not more than two lines:
(i)Investment multiplier;
(ii)Liquidity trap;
(iii)Balance of payment;
(iv)Total utility;
(v)Say's Law;
(vi)Bank money.
 1x6=6
2. What is price discrimination? What are the different types of price discrimination? When is it possible? When is price discrimination profitable? 2+5+5+5=17
3. Explain the quantitative and qualitative weapons of credit control Bank of a country. 17
4. What is taxable capacity? What are its types? Explain the factors on which taxables capacity depends. 2+5+10=17
5. (a) Discuss the functions of IMF.
(b) Critically examine the role of IBRD. 8+9=17
Please turn over
 

( 2 )

C-3(EBF)
Revised syllabus
 		 Marks
 
SECTION II (50 marks)
Answer Question No. 6 which is compulsory and any two from the rest
6. (a) Answer the following:
(i) In a Sole proprietorship
(A)Liability is limited;
(B)There is no risk;
(C)Liability is unlimited.
(ii) In India, a foreign company is a company
(A)Having a place of business outside India;
(B)Incorporated outside India and having business outside India;
(C)Incorporated outside India and having business in India.
(iii) In a partnership, a minor
(A)Can be admitted as partner;
(B)Can be admitted as a partner in an unregistered firm;
(C)Can be admitted as a beneficiary of profits.
(iv) SWOT stands for
(A)Sadness, weakness, oppression and terrorism;
(B)Success, worthiness, opportunities and trust;
(C)Strength, weakness, opportunities and threats.
(v) Bulls are oprators in stock exchange who are also called
(A)Mandeewalas;
(B)Lameducks;
(C)Tejiwalas.
1x5=5
(b) State which of the following statements are "True" and which are "False":
(i)OTEC provide promoter's contribution or seed capital.
(ii)Encoding is deciphering the meaning of the communication received.
(iii)A proxy is not entitled to speak or vote in a general meeting of a company.
(iv)Statement in lieu of prospectus is issued by a private company.
(v)Age and sex compositions of population is a part of social environment.
1x5=5
(c) Define the following terms in not more than two lines:
(i)Cooperative;
(ii)Annual General meeting;
(iii)Business Circular;
(iv)Spot transactions.
 1½x4=6
7. Distinguish between —
(a)Shares and Debentures.
(b)Public Limited company and Private Limited Company.
 8+9=17
8. What are the various objectives of a business? Explain their characteristics and importance. 8+5+4=17
9. What is a Stock Exchange? Discuss the functions of Stock Exchange. 5+12=17
10. Write short note on
(a)Special Resolution;
(b)Social responsibility of business;
(c)Essential requirements of a meeting;
(d)Ten commandments for good communication.
 4+4+4+5=17

__________

© Krishbhavara ♣