Section B (2 Mark)
In UK, which of the following types of income is not specifically exempt from income tax?

A. Statutory redundancy pay

B. Income from Individual Savings Accounts

C. Any benefit in kind provided to employees by an employer

D. Income from National Savings Certificates

Section A (1 Mark)
HNWI stands for

A. High Non Working Individuals

B. High Net Worth Individuals

C. High Net Worth Industries

D. None of the above

Section B (2 Mark)
Customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance best describes by which of the following?

A. Generic customer relationship management applications

B. Supply chain management applications.

C. Analytical customer relationship management applications

D. Operational customer relationship management applications

Section A (1 Mark)
Which of the following income is not exempt under section 10-IT Act 1961?

A. Share in total income of firm

B. Bonus on life insurance

C. Income from mutual funds

D. Income from agriculture in Lahore

Section A (1 Mark)
The profits of a controlled foreign company which are apportioned to a UK company are charged to corporation tax at the UK company's average rate of tax.

A. TRUE

B. FALSE

Section B (2 Mark)
Mr. A gifted debenture of Rs. 100000 to his wife. She received Rs. 10000 interest which she reinvests and earns Rs. 1000. This Rs. 1000 will be taxable in the hands of

A. Mr. A or Mrs. A, at the choice of the Assessing Officer

B. Mr. A

C. Mrs. A

D. Not Taxable

Section B (2 Mark)
EDLI stands for

A. Employee Deposit Linked Insurance Plan

B. Employers Deposit Linked Insurance Plan

C. Employees Daily wages Linked Insurance Plan

D. Employees Draft Linked Insurance Plan

Section C (4 Mark)
You have collected the following information regarding Companies C and D:

The two companies have the same total assets.
The two companies have the same operating income (EBIT).
The two companies have the same tax rate.
Company C has a higher debt ratio and a higher interest expense than Company D.
Company C has a lower profit margin than Company D.

Based on this information, which of the following statements is most correct?

A. Company C must have a higher level of sales.

B. Company C must have a lower ROE.

C. Company C must have a higher times-interest-earned (TIE) ratio.

D. Company C must have a lower ROA.

Section B (2 Mark)
In the maturity stage of the industry life cycle

A. The product has reached full potential.

B. Profit margins are narrower.

C. Producers are forced to compete on price to a greater extent.

D. A, B, and C.

Section B (2 Mark)
Which of the following are the ways to avoid escalation of commitment are listed below?

A. I and II

B. II and III

C. I and III

D. All of the Above

Section B (2 Mark)
The current market price of a share of CAT stock is Rs76. If a call option on this stock has a strike price of Rs76, the call

A. Is out of the money.

B. Is in the money.

C. Is at the money.

D. A and C.

Section B (2 Mark)
Profitability Index is

A. Present value of future cash flows / present value of initial investment

B. Present value of future cash flows / future value of initial investment

C. Future value of cash flows / present value of initial investment

D. None of the above