MANAGEMENT
MANAGEMENT MCQs
1:-Net Interest income is
A:-Interest earned on advances
B:-Interest earned on investments
C:-Total interest earned on advances and investment
D:-Difference between interest earned and interest paid
Ans: D
2:-Which of the following is not a type of credit risk?
A:-Default risk
B:-Credit spread risk
C:-Intrinsic risk
D:-Basis risk
Ans: B
3 :-The model that combines five financial ratios using reported accounting information and equity values to produce on objective measure of borrower's financial health is
A:-Altman's 2 score
B:-'Credit Metrics'
C:-Credit Risk +
D:-None of the above
Ans: A
4:-Growth fund is a mutual fund that
A:-assures growth in income
B:-invests in fixed income securities
C:-gives fixed return
D:-invests primarily in equities
Ans: D
5:-A fall in interest rates will make prices of Government Securities
A:-Go down
B:-Go up
C:-Remain unchanged
D:-None of these
Ans: B
6:-BCG in BCG matrix stands for
A:-Boston Calmette Group
B:-British Consulting Group
C:-Boston Corporate Group
D:-Boston Consulting Group
Ans: D
7:-Which of the following is not part of the micro environment?
A:-Technology
B:-Shareholders
C:-Competitors
D:-Publics
Ans: A
8:-What does Dog symbolize in BCG matrix?
A:-Introduction
B:-Growth
C:-Maturity
D:-Decline
Ans: D
9:-Low cost, Differentiation and Focus are examples of _________.
A:-Corporate strategies
B:-Operational strategies
C:-Business strategies
D:-Functional strategies
Ans: C
10:-__________ is known as "the father of scientific management".
A:-Fredrick W. Taylor
B:-Henry Fayol
C:-Robert Owen
D:-None of these
Ans: A
11:-Hawthorne Studies is related to which stage of the organisational behaviour evolution?
A:-Industrial revolution
B:-Scientific management
C:-Organisational behaviour
D:-Human relations movement
Ans: D
12:-The book "The Psychology of Management" was published by
A:-William Gilbreth
B:-Henry Fayol
C:-F.W. Taylor
D:-Robert Owen
Ans: A
13:-MBTI stands for
A:-Myers-Briggs Test Indicator
B:-Myers-Briggs Test Investigator
C:-Myers-Briggs Type Indicator
D:-Myers-Briggs Type Investigator
Ans: C
14:-Greater consumer control means that companies must rely more on marketing by _________ than by _________.
A:-socialization; information
B:-producing; selling
C:-interaction; intrusion
D:-interruption; involvement
Ans: C
15:-Selecting which segments of a population of customers to serve is called _________.
A:-amanaging the marketing effort
B:-target marketing
C:-customization
D:-positioning
Ans: B
16:-Introducing new products to existing markets is an example of
A:-conglomerate diversification
B:-vertical diversification
C:-horizontal diversification
D:-concentric diversification
Ans: C
17:-Calculating prices on the basis of what the market will pay is called
A:-Competitive pricing
B:-Demand pricing
C:-Prestige pricing
D:-Odd-even pricing
Ans: B
18:-The elasticity of demand is greater than unity, when
A:-Percentage change in demand is equal to the percentage change in price
B:-Percentage change in demand is more than the percentage change in price
C:-Percentage change in demand is less than the percentage change in price
D:-There is change in price
Ans: B
19:-Whistle Blowing is the situation wherein an employee
A:-Causes indiscipline in the organization
B:-Discloses other employees' illegal immoral or illegitimate activities
C:-Discloses the employer's illegal immoral or illegitimate activities
D:-All of the above
Ans: B
20:-Financial Break-even level of EBIT is one at which
A:-EPS is one
B:-EPS is infinite
C:-EPS is zero
D:-EPS is negative
Ans: C
21:-Variable which has a strong contingent effect on the independent dependent variable relationship is referred to as
A:-Extraneous variable
B:-Intervening variable
C:-Moderating variable
D:-None of the above
Ans: C
22:-SIDBI has been entrusted with the responsibility of
A:-Providing financial assistance to all sectors
B:-Developing medium and large scale industry
C:-Providing incentives to medium scale industry
D:-Developing and supporting small business
Ans: D
23:-Euro dollars are
A:-Currency
B:-Deposits
C:-Bonds
D:-Equity
Ans: B
24:-The form of learning in which people acquire new behaviours by systematically observing the rewards and
punishments given to others is known as
A:-Law of effect
B:-Positive reinforcement
C:-Modelling
D:-Operant conditioning
Ans: D
25:-From the following, identify the test which can be used both as parametric and non-parametric?
A:-'t' test
B:-'F' test
C:-'Wil-coxon' test
D:-Chi-square test
Ans: D
A:-Interest earned on advances
B:-Interest earned on investments
C:-Total interest earned on advances and investment
D:-Difference between interest earned and interest paid
Ans: D
2:-Which of the following is not a type of credit risk?
A:-Default risk
B:-Credit spread risk
C:-Intrinsic risk
D:-Basis risk
Ans: B
3 :-The model that combines five financial ratios using reported accounting information and equity values to produce on objective measure of borrower's financial health is
A:-Altman's 2 score
B:-'Credit Metrics'
C:-Credit Risk +
D:-None of the above
Ans: A
4:-Growth fund is a mutual fund that
A:-assures growth in income
B:-invests in fixed income securities
C:-gives fixed return
D:-invests primarily in equities
Ans: D
5:-A fall in interest rates will make prices of Government Securities
A:-Go down
B:-Go up
C:-Remain unchanged
D:-None of these
Ans: B
6:-BCG in BCG matrix stands for
A:-Boston Calmette Group
B:-British Consulting Group
C:-Boston Corporate Group
D:-Boston Consulting Group
Ans: D
7:-Which of the following is not part of the micro environment?
A:-Technology
B:-Shareholders
C:-Competitors
D:-Publics
Ans: A
8:-What does Dog symbolize in BCG matrix?
A:-Introduction
B:-Growth
C:-Maturity
D:-Decline
Ans: D
9:-Low cost, Differentiation and Focus are examples of _________.
A:-Corporate strategies
B:-Operational strategies
C:-Business strategies
D:-Functional strategies
Ans: C
10:-__________ is known as "the father of scientific management".
A:-Fredrick W. Taylor
B:-Henry Fayol
C:-Robert Owen
D:-None of these
Ans: A
11:-Hawthorne Studies is related to which stage of the organisational behaviour evolution?
A:-Industrial revolution
B:-Scientific management
C:-Organisational behaviour
D:-Human relations movement
Ans: D
12:-The book "The Psychology of Management" was published by
A:-William Gilbreth
B:-Henry Fayol
C:-F.W. Taylor
D:-Robert Owen
Ans: A
13:-MBTI stands for
A:-Myers-Briggs Test Indicator
B:-Myers-Briggs Test Investigator
C:-Myers-Briggs Type Indicator
D:-Myers-Briggs Type Investigator
Ans: C
14:-Greater consumer control means that companies must rely more on marketing by _________ than by _________.
A:-socialization; information
B:-producing; selling
C:-interaction; intrusion
D:-interruption; involvement
Ans: C
15:-Selecting which segments of a population of customers to serve is called _________.
A:-amanaging the marketing effort
B:-target marketing
C:-customization
D:-positioning
Ans: B
16:-Introducing new products to existing markets is an example of
A:-conglomerate diversification
B:-vertical diversification
C:-horizontal diversification
D:-concentric diversification
Ans: C
17:-Calculating prices on the basis of what the market will pay is called
A:-Competitive pricing
B:-Demand pricing
C:-Prestige pricing
D:-Odd-even pricing
Ans: B
18:-The elasticity of demand is greater than unity, when
A:-Percentage change in demand is equal to the percentage change in price
B:-Percentage change in demand is more than the percentage change in price
C:-Percentage change in demand is less than the percentage change in price
D:-There is change in price
Ans: B
19:-Whistle Blowing is the situation wherein an employee
A:-Causes indiscipline in the organization
B:-Discloses other employees' illegal immoral or illegitimate activities
C:-Discloses the employer's illegal immoral or illegitimate activities
D:-All of the above
Ans: B
20:-Financial Break-even level of EBIT is one at which
A:-EPS is one
B:-EPS is infinite
C:-EPS is zero
D:-EPS is negative
Ans: C
21:-Variable which has a strong contingent effect on the independent dependent variable relationship is referred to as
A:-Extraneous variable
B:-Intervening variable
C:-Moderating variable
D:-None of the above
Ans: C
22:-SIDBI has been entrusted with the responsibility of
A:-Providing financial assistance to all sectors
B:-Developing medium and large scale industry
C:-Providing incentives to medium scale industry
D:-Developing and supporting small business
Ans: D
23:-Euro dollars are
A:-Currency
B:-Deposits
C:-Bonds
D:-Equity
Ans: B
24:-The form of learning in which people acquire new behaviours by systematically observing the rewards and
punishments given to others is known as
A:-Law of effect
B:-Positive reinforcement
C:-Modelling
D:-Operant conditioning
Ans: D
25:-From the following, identify the test which can be used both as parametric and non-parametric?
A:-'t' test
B:-'F' test
C:-'Wil-coxon' test
D:-Chi-square test
Ans: D
26. Consider the names of organisations/persons listed in List – I and their role/functions given in List – II :
List – I List – II
a. Bureau of Indian Standards (BIS) i. Measurement of Service quality
b. Zeithmal, Parasuraman and Berry ii. Measurement of quality of Educational service
c. ISO iii. Standardisation and quality control of manufactured goods
d. National Assessment and Accreditation Council iv. Quality marking and Certification of standards
Indicate the correct matching :
Codes : a b c d
(A) i ii iii iv
(B) ii iii iv i
(C) iv ii iii i
(D) iii i iv ii
Ans: D
27. In Linear Programming, which one of the following cases is not a type of sensitivity analysis ?
(A) Model building (B) Objective-function ranging (C) Pricing out (D) Right hand-side ranging
Ans: A
28. To remain dominant, a market leader looks for
(A) ways to expand total market demand (B) attempting to protect its current share (
C) increasing its market share (D) all of the above
Ans: D
29. The additional cost of shortening an activity by one unit of time is
(A) Cost slope (B) Crash cost (C) Crash time (D) Least cost
Ans: A
30. Which method is least suited for forecasting the demand of a new product ?
(A) Survey of Buyers’ Intentions (B) Composite Opinions of Sales Force (C) Test Marketing (D) Time-Series Analysis
Ans: D
31. In a hypothesis test, α = 0.05 and β = 0.10, the power of the test is
(A) 0.10 (B) 0.90 (C) 0.95 (D) 0.15
Ans: B
32. When performing a Chi-square hypothesis test, what happens when expected frequencies in several cells are too small ?
(A) Value of χ2 will be overestimated. (B) The null hypothesis will be more likely to be rejected than it should be.
(C) The degrees of freedom are greatly reduced. (D) (A) and (B), but not (C).
Ans: D
33. Under which situation, the method of ‘experimentation, modelling and sensitivity analysis’ is used to determine the information requirements of the management ?
(A) Total Uncertainty (B) High Risk (C) Low Risk (D) Certainty
Ans: A
34. The technique(s) that can be used in data mining is/are :
(A) Non-linear Regression Methods (B) Decision tree (C) Neural networks (D) All of the above
Ans: D
35. A Binomial distribution may be approximated by a Poisson distribution, if : i. ‘n’ is large and ‘p’ is large. ii. ‘n’ is small and ‘p’ is large. iii. ‘n’ is small and ‘p’ is small. iv. ‘n’ is large and ‘p’ is small. Codes :
(A) i, ii and iii (B) ii only (C) iii and iv only (D) iv only
Ans: D
36. Double taxation relief is normally provided by the country in which the parent company has its legal residence. It is provided in the following modes :
i. Credit system without deferral
ii. Credit system with deferral
iii. Deduction of tax paid abroad as expenditure
iv. Investment credit v. Tax subsidy Identify the correct combination.
Codes :
(A) i, ii, iii and iv (B) i, ii, iv and v (C) ii, iii, iv and v (D) i, ii, iii and v
Ans: A
37. The strategies of a global firm are affected by the following factors :
i. Different countries have different labour mixes.
ii. The legal, economic, social and cultural environment varies from one country to another.
iii. Different countries have different time lines and geographical boundaries.
iv. Political relationship between the home country and the host country. Indicate the correct combination.
Codes :
(A) i, ii and iii
(B) ii, iii and iv
(C) i, ii and iv
(D) i and ii only
Ans: C
38. Match the items of List – I and List – II :
List – I List – II
a. UNCTAD I i. India
b. UNCTAD II ii. Brazil
c. UNCTAD X iii. Thailand
d. UNCTAD XI iv. Switzerland
Indicate the correct matching.
Codes : a b c d
(A) iv i iii ii
(B) iii i iv ii
(C) ii i iii iv
(D) iv i ii iii
Ans: A
40. Statement-I : Cost of retained earnings is included in the cost of equity in the context of international business.
Statement-II : Interest rate swap and currency swap are used interchangeably in international business.
(A) Statement I is true, but Statement II is false.
(B) Statement I is false, but Statement II is true.
(C) Both the statements I and II are true.
(D) Both the Statements I and II are false.
Ans: D
41. Who said – “An entrepreneur always searches for change, responds to it and exploit it as an opportunity.” ?
(A) James Burna (B) McClelland (C) Peter F. Drucker (D) Robert C. Ronstadt
Ans: C
42. ‘Kakinada Experiment’ on achievement motivation was conducted in
(A) Uttar Pradesh (B) Jammu & Kashmir (C) Andhra Pradesh (D) Gujarat
Ans: C
43. The entrepreneurial process consists of the following steps :
i. Management of the resulting enterprise.
ii. Determination of the required resources.
iii. Identification and evaluation of the opportunity.
iv. Development of the business plan. Indicate the correct sequence.
Codes :
(A) iii iv i ii
(B) iv i iii ii
(C) iii iv ii I
(D) iv i ii iii
Ans: C
44. Match the items given in List – I and List – II :
List – I List – II
a. Market Research i. Sales promotion
b. Financial Plan ii. Form of business
c. Ownership iii. Budgeting
d. Marketing Plan iv. Exploring market opportunity
Codes : a b c d
(A) i ii iii iv
(B) iv iii i ii
(C) iv iii ii i
(D) i ii iv iii
Ans: C
45. TePP stands for
(A) Technology for Promotion and Production (B) Trade for Profitability and Productivity
(C) Technopreneur Promotion Programme (D) None of the above
Ans: C
46. Indo-American Model of Corporate Governance sets top most priority to
(A) Business growth (B) Customers (C) Employees (D) Shareholders
Ans: D
47. A good governance in corporate sector depends upon
(A) Strong political will (B) Transparency and accountability (C) Trade Union practices (D) Social and political responses
Ans: B
48. Corporate leaders in India in private sector are tempted by a very high target of ________ and the concerned employee have to achieve the target for promotion and stability.
(A) Money making (B) Business growth (C) Product development (D) Profit
Ans: D
49. Corporate business ethics is ________ norms and pattern that spring from organizational view of good and bad, right and wrong.
(A) Social (B) Behavioural (C) Institutional (D) Individual
Ans: B
50. Trade Union strike supporting a political cause and affecting production activities is a problem related to
(A) Socio-economic phenomenon (B) Ethical and technical phenomenon
(C) Ethical and economic phenomenon (D) Socio-political phenomenon
Ans: C
List – I List – II
a. Bureau of Indian Standards (BIS) i. Measurement of Service quality
b. Zeithmal, Parasuraman and Berry ii. Measurement of quality of Educational service
c. ISO iii. Standardisation and quality control of manufactured goods
d. National Assessment and Accreditation Council iv. Quality marking and Certification of standards
Indicate the correct matching :
Codes : a b c d
(A) i ii iii iv
(B) ii iii iv i
(C) iv ii iii i
(D) iii i iv ii
Ans: D
27. In Linear Programming, which one of the following cases is not a type of sensitivity analysis ?
(A) Model building (B) Objective-function ranging (C) Pricing out (D) Right hand-side ranging
Ans: A
28. To remain dominant, a market leader looks for
(A) ways to expand total market demand (B) attempting to protect its current share (
C) increasing its market share (D) all of the above
Ans: D
29. The additional cost of shortening an activity by one unit of time is
(A) Cost slope (B) Crash cost (C) Crash time (D) Least cost
Ans: A
30. Which method is least suited for forecasting the demand of a new product ?
(A) Survey of Buyers’ Intentions (B) Composite Opinions of Sales Force (C) Test Marketing (D) Time-Series Analysis
Ans: D
31. In a hypothesis test, α = 0.05 and β = 0.10, the power of the test is
(A) 0.10 (B) 0.90 (C) 0.95 (D) 0.15
Ans: B
32. When performing a Chi-square hypothesis test, what happens when expected frequencies in several cells are too small ?
(A) Value of χ2 will be overestimated. (B) The null hypothesis will be more likely to be rejected than it should be.
(C) The degrees of freedom are greatly reduced. (D) (A) and (B), but not (C).
Ans: D
33. Under which situation, the method of ‘experimentation, modelling and sensitivity analysis’ is used to determine the information requirements of the management ?
(A) Total Uncertainty (B) High Risk (C) Low Risk (D) Certainty
Ans: A
34. The technique(s) that can be used in data mining is/are :
(A) Non-linear Regression Methods (B) Decision tree (C) Neural networks (D) All of the above
Ans: D
35. A Binomial distribution may be approximated by a Poisson distribution, if : i. ‘n’ is large and ‘p’ is large. ii. ‘n’ is small and ‘p’ is large. iii. ‘n’ is small and ‘p’ is small. iv. ‘n’ is large and ‘p’ is small. Codes :
(A) i, ii and iii (B) ii only (C) iii and iv only (D) iv only
Ans: D
36. Double taxation relief is normally provided by the country in which the parent company has its legal residence. It is provided in the following modes :
i. Credit system without deferral
ii. Credit system with deferral
iii. Deduction of tax paid abroad as expenditure
iv. Investment credit v. Tax subsidy Identify the correct combination.
Codes :
(A) i, ii, iii and iv (B) i, ii, iv and v (C) ii, iii, iv and v (D) i, ii, iii and v
Ans: A
37. The strategies of a global firm are affected by the following factors :
i. Different countries have different labour mixes.
ii. The legal, economic, social and cultural environment varies from one country to another.
iii. Different countries have different time lines and geographical boundaries.
iv. Political relationship between the home country and the host country. Indicate the correct combination.
Codes :
(A) i, ii and iii
(B) ii, iii and iv
(C) i, ii and iv
(D) i and ii only
Ans: C
38. Match the items of List – I and List – II :
List – I List – II
a. UNCTAD I i. India
b. UNCTAD II ii. Brazil
c. UNCTAD X iii. Thailand
d. UNCTAD XI iv. Switzerland
Indicate the correct matching.
Codes : a b c d
(A) iv i iii ii
(B) iii i iv ii
(C) ii i iii iv
(D) iv i ii iii
Ans: A
40. Statement-I : Cost of retained earnings is included in the cost of equity in the context of international business.
Statement-II : Interest rate swap and currency swap are used interchangeably in international business.
(A) Statement I is true, but Statement II is false.
(B) Statement I is false, but Statement II is true.
(C) Both the statements I and II are true.
(D) Both the Statements I and II are false.
Ans: D
41. Who said – “An entrepreneur always searches for change, responds to it and exploit it as an opportunity.” ?
(A) James Burna (B) McClelland (C) Peter F. Drucker (D) Robert C. Ronstadt
Ans: C
42. ‘Kakinada Experiment’ on achievement motivation was conducted in
(A) Uttar Pradesh (B) Jammu & Kashmir (C) Andhra Pradesh (D) Gujarat
Ans: C
43. The entrepreneurial process consists of the following steps :
i. Management of the resulting enterprise.
ii. Determination of the required resources.
iii. Identification and evaluation of the opportunity.
iv. Development of the business plan. Indicate the correct sequence.
Codes :
(A) iii iv i ii
(B) iv i iii ii
(C) iii iv ii I
(D) iv i ii iii
Ans: C
44. Match the items given in List – I and List – II :
List – I List – II
a. Market Research i. Sales promotion
b. Financial Plan ii. Form of business
c. Ownership iii. Budgeting
d. Marketing Plan iv. Exploring market opportunity
Codes : a b c d
(A) i ii iii iv
(B) iv iii i ii
(C) iv iii ii i
(D) i ii iv iii
Ans: C
45. TePP stands for
(A) Technology for Promotion and Production (B) Trade for Profitability and Productivity
(C) Technopreneur Promotion Programme (D) None of the above
Ans: C
46. Indo-American Model of Corporate Governance sets top most priority to
(A) Business growth (B) Customers (C) Employees (D) Shareholders
Ans: D
47. A good governance in corporate sector depends upon
(A) Strong political will (B) Transparency and accountability (C) Trade Union practices (D) Social and political responses
Ans: B
48. Corporate leaders in India in private sector are tempted by a very high target of ________ and the concerned employee have to achieve the target for promotion and stability.
(A) Money making (B) Business growth (C) Product development (D) Profit
Ans: D
49. Corporate business ethics is ________ norms and pattern that spring from organizational view of good and bad, right and wrong.
(A) Social (B) Behavioural (C) Institutional (D) Individual
Ans: B
50. Trade Union strike supporting a political cause and affecting production activities is a problem related to
(A) Socio-economic phenomenon (B) Ethical and technical phenomenon
(C) Ethical and economic phenomenon (D) Socio-political phenomenon
Ans: C
51. The Marshallian utility analysis is based on a less valid assumption of
(A) cardinal measurement of utility (B) constant marginal utility of money
(C) diminishing marginal utility of goods (D) additivity of the utility
Ans: B
52. An appropriate pricing strategy for a new product to be introduced in the market will be
(A) Average/Marginal cost-plus pricing (B) Skimming/Penetrating pricing
(C) Product-line pricing (D) Differential pricing
Ans: B
53. Economic capacity of a plant represents the firm’s capability for
(A) Maximum physical output (B) Maximum marginal output
(C) Break-even level of output and sale (D) Output that equates average and marginal costs
Ans: D
54. Multi-stage approach to product pricing in a firm involves considerations for setting the price as follows :
i. Selection of firm’s objective
ii. Composition of marketing-mix
iii. Selection of target market
iv. Selection of pricing policy and strategy Indicate correct sequence :
(A) iv → ii → i → iii (B) iii → i → ii → iv
(C) ii → iv → iii → i (D) i → iii → ii → iv
Ans: B
55. Which one of the following practices is not sought to be regulated under the Consumer Protection Act, 1986 ?
(A) Sales of defective goods (B) Supply of services having some deficiency
(C) Misleading advertisements (D) Goods supplied free of charge
Ans: D
56. The leadership prototype
(A) is useful primarily for selection and training of employees
(B) uses LPC (Least Preferred Co-worker) as an important component
(C) depicts the image of a model leader
(D) emphasizes leadership development
Ans: C
57. Which is not a perceptual process stage ?
(A) Attention/selection (B) Interpretation (C) Follow-through (D) Retrieval
Ans: A
58. Which statement is correct ?
(A) Goals act as the set of constraints that an organisation must satisfy.
(B) Deterministic goals specify the end or direction towards which the organisation applies its efforts, and they can be fairly determined.
(C) Goals may be categorised as deterministic and constraint goals.
(D) All of the above.
Ans: D
59. According to Fiedler’s Contingency Model of Leadership, which one of the following is not a situational variable ?
(A) Leader-Member relations (B) Task structure
(C) Position power (D) Maturity of followers
Ans: D
60. Which is not a centralised communication network system ?
(A) Wheel Network (B) Y-shaped Network (C) Circle Network (D) Chain Network
Ans: C
61. Why is ‘procedural justice’ important in the context of the management of misconduct ?
(A) It reflects on the integrity of HR professionals. (B) It ensures that individuals have a sense that they have been treated fairly.
(C) It reflects on the values and attitudes of top management. (D) It protects the interest of daily wage earners.
Ans: B
62. To be effective a points-basedrating system requires :
(A) Close management control (B) Comprehensive, reliable and consistent information
(C) Objectivity in assessments (D) 360° assessment
Ans: B
63. Too much of reliance on internal recruitment can result in
(A) Reduced job performance (B) High labour turnover (C) Internal conflict (D) Poor group dynamics
Ans: A
64. The concept of stagnation in the context of HRM means :
(A) Lack of appropriate selection criteria.
(B) HR staff having very limited experience outside the HR function.
(C) Over-reliance on the internal labour market to fill new positions.
(D) Lack of integration of recruitment and selection into the wider human resource function.
Ans: B
65. Negotiations are an important aspect of the collective-bargaining process. What do they ensure ?
(A) That conflict is contained within manageable boundaries. (B) That there is an agreement between all parties involved.
(C) That conflict is always resolved. (D) It achieves a set of lasting agreements.
Ans: A
66. If the going rate of interest is above the coupon rate, the bond will sell :
(A) At a Premium (B) At a Discount (C) At Par (D) None of the above
Ans: B
67. In case the sales or project’s investment deviates from expected ones, it needs
(A) Optimistic scenario analysis (B) Sensitivity analysis (C) Simulation analysis (D) Financial break-even analysis
Ans: B
68. ‘Trading on equity’ refers to
(A) Optimum capital structure (B) Appropriate capitalization
(C) Capital gearing (D) Watered capital
Ans: C
69. Match the items of two lists, giving the correct code :
List – I List – II
a. Dividend Capitalisation Model i. John Lintner
b. Dividend Relevance Model ii. James E. Walter
c. Dividend Irrelevance Model iii. Myron Gordon
d. Dividend Payout Model iv. Modigliani & Miller
Codes :
a b c d
(A) ii i iii iv
(B) i iv ii iii
(C) iii ii iv I
(D) iv iii i ii
Ans: C
70. The excess payment by the new company to the amalgamating companies for the appraised value of the assets and liabilities taken over is accounted as
(A) Capital Reserve (B) Bonus Share Capital (C) Goodwill (D) Amount paid for the acquisition of the brand
Ans: C
71. Which of the following is direct marketing ?
(A) Face to-face marketing (B) Catalogue marketing (C) Direct mailing (D) Test marketing
Ans: A
72. In marketing research, primary data can be collected through
(A) Observational Method (B) Survey Method (C) Experimental Method (D) All of the above
Ans: D
73. Holistic marketing does not include
(A) Internal Marketing (B) Integrated Marketing (C) Performance Marketing (D) Financial Marketing
Ans: D
74. Which of the following is not a distinctive characteristics of services ?
(A) Transparency (B) Intangibility (C) Inseparability (D) Perishability
Ans: A
75. Supply curve slopes backward towards left, when:
(A) More quantity is supplied at higher prices.
(B) Less quantity is supplied at higher prices.
(C) Same quantity is supplied at higher prices
(D) None of the above
Ans: B
76. Transactional Analysis (TA) is related to
(A) Learning
(B) Attitudes
(C) Perception
(D) Personality
Ans: D
77. Which among the following is odd one?
(A) BMS
(B) FICCI
(C) AITUC
(D) INTUC
Ans: B
78. Which of the following strategies requires a company to concentrate its efforts in one or more narrow segments instead of a broad based strategy?
(A) Cost-Leadership strategy
(B) Differentiation strategy
(C) Focus strategy
(D) None of the above
Ans: C
79. In case where the investment can be made in stages and is dependent on the future outcomes, the capital budgeting technique that can be adopted will be
(A) Simulation technique
(B) Hiller model
(C) Decision-tree analysis
(D) Scenario analysis
Ans: C
80. Statement (i): In an organization we pay for jobs, we do not pay for men.
Statement (ii): The compensation must be as per the Job assigned.
(A) Statement (i) is correct but (ii) is false.
(B) Statement (ii) is correct but (i) is false.
(C) Both statement (i) and (ii) are correct.
(D) Both statement (i) and (ii) are false.
Ans: C
81. If the regression coefficient of the independent variable in a simple regression equation is negative, then which of the following statement is correct?
(A) The coefficient of correlation between the variables is zero.
(B) The coefficient of correlation between the variables is the positive square root of the coefficient of determination.
(C) The coefficient of correlation between the variables is the negative square root of the coefficient of determination.
(D) None of the above.
Ans: C
82. Selling the products only through a single wholesaler or retailer is called
(A) Extensive distribution strategy
(B) Selective distribution strategy
(C) Exclusive distribution strategy
(D) Mass merchandise strategy
Ans: C
83. Marketing myopia concept was developed by
(A) Philip Kotler
(B) Peter Drucker
(C) C. K. Prahlada
(D) Theodore Levitt
Ans: D
84. Emerging market economies are:
(A) A part of developed countries
(B) Newly industrializing countries
(C) A part of developing countries
(D) A part of third world countries
Ans: B
85. What describes the market, product and technological area of business?
(A) Company’s mission
(B) Company’s vision
(C) Strategic plan
(D) None of the above
Ans: A
86. Activities taken up on part time or casual basis to raise income is:
(A) Self employment
(B) Income generation
(C) Entrepreneurship
(D) None of the above
Ans: B
87. “The optimal pay-out ratio for growth firm is nil and declining firm is 100%” is established by
(A) Gordon model
(B) Walter model
(C) Both (A) and (B)
(D) None of the above
Ans: C
88. Match the following:
List-I List-II
(i) Z – Theory (a) Hergberg
(ii) Y – Theory (b) Maslow
(iii) Hierarchy Needs Theory (c) Mc Gregor
(iv) Hygiene Theory (d) Urwick
Codes:
(a) (b) (c) (d)
(A) (iv) (i) (iii) (ii)
(B) (iii) (ii) (iv) (i)
(C) (iv) (iii) (ii) (i)
(D) (iii) (iv) (i) (ii)
Ans: C
89. Need-Hierarchy Theory was propounded by
(A) Peter F. Drucker
(B) Abraham Maslow
(C) Mc – Fraland
(D) Elton Mayo
Ans: B
90. Additional revenue generated by selling an additional unit is
(A) Incremental revenue
(B) Marginal revenue
(C) Total revenue
(D) Average revenue
Ans: B
91. What is the term used if a market is divided into distinct groups of buyers who might require separate products or marketing mixes?
(A) Market Targetting
(B) Market Positioning
(C) Market Segmentation
(D) Market Co-ordination
Ans: C
92. Bath tub curve is encountered in
(A) Process control
(B) Acceptance sampling
(C) Both (A) and (B)
(D) Maintenance management
Ans: D
93. Cost advantage is referred as
(A) A firm achieving a lower cumulative cost of performing value activities than its competitors
(B) Firm trying to outsource all relative products from one company to gain economies of scale
(C) Firm trying to restrict the cost controls measure relative to its nearer competitor
(D) None of the above
Ans: A
94. If a hypothesis is tested at a significant level of 5%, then it means that
(A) There is 5% probability that the null hypothesis will be rejected though it is true.
(B) There is 5% probability that the null hypothesis will be false.
(C) There is 5% probability that the null hypothesis will be true.
(D) There is 95% probability that the alternative hypothesis will be false.
Ans: A
95. The time that elapses between the purchase of raw materials and the collection of cash for sales is referred as
(A) Production cycle
(B) Operating cycle
(C) Cash cycle
(D) Organisation cycle
Ans: B
96. One of the following is not included in job descriptions:
(A) Job title
(B) Location
(C) Penal actions
(D) Duties
Ans: C
97. In which type of market situation competitors offer same type of products and services for the same price with no differentiation?
(A) Monopolistic competition
(B) Monopoly
(C) Oligopoly
(D) Perfect competition
Ans: D
98. Sick enterprise is referred to which of the following bodies for rehabilitation?
(A) Small Industries Development Bank of India (SIDBI)
(B) Small Industries Development Organisation (SIDO)
(C) Board for Industrial and Financial Restructure (BIFR)
(D) National Small Industries Corporation (NSIC)
Ans: C
99. Match the following:
(i) Wealth of Nations I. Robert Giffen
(ii) Income and Substitution effect II. Paul M. Sweezy
(iii) Kinked Demand Curve III. Cobb- Douglas
(iv) Production function IV. Adam Smith
Codes:
(i) (ii) (iii) (iv)
(A) IV II I III
(B) IV I III II
(C) IV II III I
(D) IV I II III
Ans: D
100. The term “Grapevine Communication” is related to
(A) Formal Communication
(B) Informal Communication
(C) Written Communication
(D) Vertical Communication
Ans: B
(A) cardinal measurement of utility (B) constant marginal utility of money
(C) diminishing marginal utility of goods (D) additivity of the utility
Ans: B
52. An appropriate pricing strategy for a new product to be introduced in the market will be
(A) Average/Marginal cost-plus pricing (B) Skimming/Penetrating pricing
(C) Product-line pricing (D) Differential pricing
Ans: B
53. Economic capacity of a plant represents the firm’s capability for
(A) Maximum physical output (B) Maximum marginal output
(C) Break-even level of output and sale (D) Output that equates average and marginal costs
Ans: D
54. Multi-stage approach to product pricing in a firm involves considerations for setting the price as follows :
i. Selection of firm’s objective
ii. Composition of marketing-mix
iii. Selection of target market
iv. Selection of pricing policy and strategy Indicate correct sequence :
(A) iv → ii → i → iii (B) iii → i → ii → iv
(C) ii → iv → iii → i (D) i → iii → ii → iv
Ans: B
55. Which one of the following practices is not sought to be regulated under the Consumer Protection Act, 1986 ?
(A) Sales of defective goods (B) Supply of services having some deficiency
(C) Misleading advertisements (D) Goods supplied free of charge
Ans: D
56. The leadership prototype
(A) is useful primarily for selection and training of employees
(B) uses LPC (Least Preferred Co-worker) as an important component
(C) depicts the image of a model leader
(D) emphasizes leadership development
Ans: C
57. Which is not a perceptual process stage ?
(A) Attention/selection (B) Interpretation (C) Follow-through (D) Retrieval
Ans: A
58. Which statement is correct ?
(A) Goals act as the set of constraints that an organisation must satisfy.
(B) Deterministic goals specify the end or direction towards which the organisation applies its efforts, and they can be fairly determined.
(C) Goals may be categorised as deterministic and constraint goals.
(D) All of the above.
Ans: D
59. According to Fiedler’s Contingency Model of Leadership, which one of the following is not a situational variable ?
(A) Leader-Member relations (B) Task structure
(C) Position power (D) Maturity of followers
Ans: D
60. Which is not a centralised communication network system ?
(A) Wheel Network (B) Y-shaped Network (C) Circle Network (D) Chain Network
Ans: C
61. Why is ‘procedural justice’ important in the context of the management of misconduct ?
(A) It reflects on the integrity of HR professionals. (B) It ensures that individuals have a sense that they have been treated fairly.
(C) It reflects on the values and attitudes of top management. (D) It protects the interest of daily wage earners.
Ans: B
62. To be effective a points-basedrating system requires :
(A) Close management control (B) Comprehensive, reliable and consistent information
(C) Objectivity in assessments (D) 360° assessment
Ans: B
63. Too much of reliance on internal recruitment can result in
(A) Reduced job performance (B) High labour turnover (C) Internal conflict (D) Poor group dynamics
Ans: A
64. The concept of stagnation in the context of HRM means :
(A) Lack of appropriate selection criteria.
(B) HR staff having very limited experience outside the HR function.
(C) Over-reliance on the internal labour market to fill new positions.
(D) Lack of integration of recruitment and selection into the wider human resource function.
Ans: B
65. Negotiations are an important aspect of the collective-bargaining process. What do they ensure ?
(A) That conflict is contained within manageable boundaries. (B) That there is an agreement between all parties involved.
(C) That conflict is always resolved. (D) It achieves a set of lasting agreements.
Ans: A
66. If the going rate of interest is above the coupon rate, the bond will sell :
(A) At a Premium (B) At a Discount (C) At Par (D) None of the above
Ans: B
67. In case the sales or project’s investment deviates from expected ones, it needs
(A) Optimistic scenario analysis (B) Sensitivity analysis (C) Simulation analysis (D) Financial break-even analysis
Ans: B
68. ‘Trading on equity’ refers to
(A) Optimum capital structure (B) Appropriate capitalization
(C) Capital gearing (D) Watered capital
Ans: C
69. Match the items of two lists, giving the correct code :
List – I List – II
a. Dividend Capitalisation Model i. John Lintner
b. Dividend Relevance Model ii. James E. Walter
c. Dividend Irrelevance Model iii. Myron Gordon
d. Dividend Payout Model iv. Modigliani & Miller
Codes :
a b c d
(A) ii i iii iv
(B) i iv ii iii
(C) iii ii iv I
(D) iv iii i ii
Ans: C
70. The excess payment by the new company to the amalgamating companies for the appraised value of the assets and liabilities taken over is accounted as
(A) Capital Reserve (B) Bonus Share Capital (C) Goodwill (D) Amount paid for the acquisition of the brand
Ans: C
71. Which of the following is direct marketing ?
(A) Face to-face marketing (B) Catalogue marketing (C) Direct mailing (D) Test marketing
Ans: A
72. In marketing research, primary data can be collected through
(A) Observational Method (B) Survey Method (C) Experimental Method (D) All of the above
Ans: D
73. Holistic marketing does not include
(A) Internal Marketing (B) Integrated Marketing (C) Performance Marketing (D) Financial Marketing
Ans: D
74. Which of the following is not a distinctive characteristics of services ?
(A) Transparency (B) Intangibility (C) Inseparability (D) Perishability
Ans: A
75. Supply curve slopes backward towards left, when:
(A) More quantity is supplied at higher prices.
(B) Less quantity is supplied at higher prices.
(C) Same quantity is supplied at higher prices
(D) None of the above
Ans: B
76. Transactional Analysis (TA) is related to
(A) Learning
(B) Attitudes
(C) Perception
(D) Personality
Ans: D
77. Which among the following is odd one?
(A) BMS
(B) FICCI
(C) AITUC
(D) INTUC
Ans: B
78. Which of the following strategies requires a company to concentrate its efforts in one or more narrow segments instead of a broad based strategy?
(A) Cost-Leadership strategy
(B) Differentiation strategy
(C) Focus strategy
(D) None of the above
Ans: C
79. In case where the investment can be made in stages and is dependent on the future outcomes, the capital budgeting technique that can be adopted will be
(A) Simulation technique
(B) Hiller model
(C) Decision-tree analysis
(D) Scenario analysis
Ans: C
80. Statement (i): In an organization we pay for jobs, we do not pay for men.
Statement (ii): The compensation must be as per the Job assigned.
(A) Statement (i) is correct but (ii) is false.
(B) Statement (ii) is correct but (i) is false.
(C) Both statement (i) and (ii) are correct.
(D) Both statement (i) and (ii) are false.
Ans: C
81. If the regression coefficient of the independent variable in a simple regression equation is negative, then which of the following statement is correct?
(A) The coefficient of correlation between the variables is zero.
(B) The coefficient of correlation between the variables is the positive square root of the coefficient of determination.
(C) The coefficient of correlation between the variables is the negative square root of the coefficient of determination.
(D) None of the above.
Ans: C
82. Selling the products only through a single wholesaler or retailer is called
(A) Extensive distribution strategy
(B) Selective distribution strategy
(C) Exclusive distribution strategy
(D) Mass merchandise strategy
Ans: C
83. Marketing myopia concept was developed by
(A) Philip Kotler
(B) Peter Drucker
(C) C. K. Prahlada
(D) Theodore Levitt
Ans: D
84. Emerging market economies are:
(A) A part of developed countries
(B) Newly industrializing countries
(C) A part of developing countries
(D) A part of third world countries
Ans: B
85. What describes the market, product and technological area of business?
(A) Company’s mission
(B) Company’s vision
(C) Strategic plan
(D) None of the above
Ans: A
86. Activities taken up on part time or casual basis to raise income is:
(A) Self employment
(B) Income generation
(C) Entrepreneurship
(D) None of the above
Ans: B
87. “The optimal pay-out ratio for growth firm is nil and declining firm is 100%” is established by
(A) Gordon model
(B) Walter model
(C) Both (A) and (B)
(D) None of the above
Ans: C
88. Match the following:
List-I List-II
(i) Z – Theory (a) Hergberg
(ii) Y – Theory (b) Maslow
(iii) Hierarchy Needs Theory (c) Mc Gregor
(iv) Hygiene Theory (d) Urwick
Codes:
(a) (b) (c) (d)
(A) (iv) (i) (iii) (ii)
(B) (iii) (ii) (iv) (i)
(C) (iv) (iii) (ii) (i)
(D) (iii) (iv) (i) (ii)
Ans: C
89. Need-Hierarchy Theory was propounded by
(A) Peter F. Drucker
(B) Abraham Maslow
(C) Mc – Fraland
(D) Elton Mayo
Ans: B
90. Additional revenue generated by selling an additional unit is
(A) Incremental revenue
(B) Marginal revenue
(C) Total revenue
(D) Average revenue
Ans: B
91. What is the term used if a market is divided into distinct groups of buyers who might require separate products or marketing mixes?
(A) Market Targetting
(B) Market Positioning
(C) Market Segmentation
(D) Market Co-ordination
Ans: C
92. Bath tub curve is encountered in
(A) Process control
(B) Acceptance sampling
(C) Both (A) and (B)
(D) Maintenance management
Ans: D
93. Cost advantage is referred as
(A) A firm achieving a lower cumulative cost of performing value activities than its competitors
(B) Firm trying to outsource all relative products from one company to gain economies of scale
(C) Firm trying to restrict the cost controls measure relative to its nearer competitor
(D) None of the above
Ans: A
94. If a hypothesis is tested at a significant level of 5%, then it means that
(A) There is 5% probability that the null hypothesis will be rejected though it is true.
(B) There is 5% probability that the null hypothesis will be false.
(C) There is 5% probability that the null hypothesis will be true.
(D) There is 95% probability that the alternative hypothesis will be false.
Ans: A
95. The time that elapses between the purchase of raw materials and the collection of cash for sales is referred as
(A) Production cycle
(B) Operating cycle
(C) Cash cycle
(D) Organisation cycle
Ans: B
96. One of the following is not included in job descriptions:
(A) Job title
(B) Location
(C) Penal actions
(D) Duties
Ans: C
97. In which type of market situation competitors offer same type of products and services for the same price with no differentiation?
(A) Monopolistic competition
(B) Monopoly
(C) Oligopoly
(D) Perfect competition
Ans: D
98. Sick enterprise is referred to which of the following bodies for rehabilitation?
(A) Small Industries Development Bank of India (SIDBI)
(B) Small Industries Development Organisation (SIDO)
(C) Board for Industrial and Financial Restructure (BIFR)
(D) National Small Industries Corporation (NSIC)
Ans: C
99. Match the following:
(i) Wealth of Nations I. Robert Giffen
(ii) Income and Substitution effect II. Paul M. Sweezy
(iii) Kinked Demand Curve III. Cobb- Douglas
(iv) Production function IV. Adam Smith
Codes:
(i) (ii) (iii) (iv)
(A) IV II I III
(B) IV I III II
(C) IV II III I
(D) IV I II III
Ans: D
100. The term “Grapevine Communication” is related to
(A) Formal Communication
(B) Informal Communication
(C) Written Communication
(D) Vertical Communication
Ans: B