COMMERCE PAGE 4
Commerce Page 4- MCQs
1. In accounting, profit prior to incorporation is treated as
(A) Revenue Reserve
(B) Secret Reserve
(C) Capital Reserve
(D) General Reserve
Ans: C
2. Receipts and Payments Account is prepared by
(A) Manufacturing concerns
(B) Non-Trading concerns
(C) Trading concerns
(D) Companies registered under Companies Act, 1956
Ans: B
3. Owners equity stands for
(A) Fixed Assets minus Fixed Liabilities.
(B) Fixed Assets minus Current Liabilities.
(C) Current Assets minus Fixed Liabilities.
(D) Total Assets minus Total outside Liabilities.
Ans: D
4. When the Debt Turnover Ratio is 4, what is the average collection period?
(A) 5 months
(B) 4 months
(C) 3 months
(D) 2 months
Ans: C
5. Which of the following will result into sources of funds?
(i) Increase in current assets
(ii) Decrease in current assets
(iii) Increase in current liabilities
(iv) Decrease in current liabilities
Codes:
(A) (i) and (iv)
(B) (ii) and (iii)
(C) (i) and (iii)
(D) (ii) and (iv)
Ans: B
6. In marginal costing, contribution is equal to
(A) Sales – Fixed cost
(B) Sales – Variable cost
(C) Sales – Profit
(D) Sales – Variable Cost + Fixed cost
Ans: B
7. The funds available with a company after paying all claims including tax and dividend is called
(A) Net Profit
(B) Net Operating Profit
(C) Capital Profit
(D) Retained Earnings
Ans: D
8. Assertion (A): Accounting information refers to only events which are concerned with business firm.
Reason (R): Accounting information is presented in financial statements.
Codes:
(A) (A) is correct, but (R) is wrong.
(B) Both (A) and (R) are correct.
(C) (A) is wrong, but (R) is correct.
(D) Both (A) and (R) are wrong.
Ans: B
9. When average cost is declining
(A) Marginal cost must be declining.
(B) Marginal cost must be above average cost.
(C) Marginal cost must be below average cost.
(D) Marginal cost must be rising.
Ans: C
10. ABC Ltd. has declared 40% dividend. Which one of the following does it mean?
(A) The company has declared 40% of net profit as dividend.
(B) The company has declared 40% of profits after tax as dividend.
(C) The company will provide dividend 40% on issued capital.
(D) The company will provide dividend 40% on paid-up capital.
Ans: D
11. The main objective of Accounting Standards is
(A) To prepare the accounting reports which is easily understood by common man.
(B) To comply with the legal formalities.
(C) To harmonise the diversified accounting practices.
(D) To comply with the requirements of the International Accounting Standards (IAS).
Ans: C
12. Given below are two statements:
I. Activity ratios show where the company is going.
II. Balance Sheet ratios show how the company stand.
Codes:
(A) I is correct, but II is wrong.
(B) Both I and II are correct.
(C) I is wrong, but II is correct.
(D) Both I and II are wrong.
Ans: B
13. Income and Expenditure Account of non-profit organisation is a
(A) Real Account
(B) Nominal Account
(C) Personal Account
(D) Representative Personal Account
Ans: B
14. Which of the following statements are correct?
I. Inventory includes raw materials, finished goods and work – in – progress.
II. Inventory is a part of the working capital.
III. Inventory includes goods likely to be purchased.
Codes:
(A) I, II and III
(B) II and III
(C) I and III
(D) I and II
Ans: D
15. If the current ratio is 2: 1 and working capital is Rs. 60,000, what is the value of the Current Assets?
(A) Rs. 60,000
(B) Rs. 1, 00,000
(C) Rs. 1, 20,000
(D) Rs. 1, 80,000
Ans: C
16. Which of the following steps of purchase decision process is in sequence?
1. Problem recognition
2. Search for alternatives
3. Evaluation of alternatives
4. Purchase action
5. Post purchase action
Codes:
(A) 1, 3, 2, 4, 5
(B) 1, 2, 4, 3, 5
(C) 2, 1, 3, 5, 4
(D) 1, 2, 3, 4, 5
Ans: D
17. What is customer value?
(A) Ratio between the customer’s perceived benefits and the resources used to obtain these benefits.
(B) Excess of satisfaction over expectation.
(C) Post purchase dissonance
(D) None of the above
Ans: A
18. Match the items of List – I with items of List – II.
List – I List – II
a. The silent mental repetition of information. 1. Encoding
b. The process by which we select a word or visual image to represent a perceived object. 2. Rehearsal
c. Where information is kept temporarily before further processing. 3. Working Memory
d. The stage of real memory in which information is processed and held for just a brief period. 4. Store house
Codes:
a b c d
(A) 2 1 4 3
(B) 1 2 3 4
(C) 3 2 1 4
(D) 4 3 2 1
Ans: A
19. Fill in the blanks:
Statements Alternatives
a. Loyal customers’ ____ products. 1. Less attention
b. Loyal customers are ____ sensitive. 2. Cheaper
c. Loyal customers pay ____ to competitor’s advertising. 3. Less price
d. Serving existing customer is ____ 4. Buy more
Codes:
a b c d
(A) 3 1 2 4
(B) 4 3 1 2
(C) 2 1 3 4
(D) 4 3 2 1
Ans: B
20. Assertion (A): High customer expectations lead to dissatisfaction as product performance never matches them.
Reason (R): Product performance is always customer specific.
Codes:
(A) Both (A) and (R) are correct.
(B) Both (A) and (R) are incorrect.
(C) (A) is correct, but (R) is incorrect.
(D) (R) is correct, but (A) is incorrect.
Ans: B
21. Under which concept of marketing do you find greater emphasis on techniques and technology of production?
(A) Product
(B) Selling
(C) Marketing
(D) None
Ans: D
22. Which is used for short-term sales achievement?
(A) Personal selling
(B) Advertising
(C) Sales Promotion
(D) Public Relations
Ans: C
23. Public distribution system relates to
(A) Marketing system
(B) Retailing system
(C) Industrial system
(D) Selling system
Ans: B
24. Who do buy more, complain less, spread positive word of mouth, ensure a large customer base and repeat business?
(A) Satisfied customers
(B) Delighted customers
(C) Industrial customers
(D) None of the above
Ans: B
25. There are impulses which persuade a customer to buy certain products without evaluating the positive and negative value of the same.
(A) Emotional motives
(B) Blind motives
(C) Egoistic motives
(D) All the above
Ans: D
26. Which subject is relevant to the study of consumer behaviour?
(A) Economics
(B) Psychology
(C) Sociology
(D) All the above
Ans: D
27. Find an incorrect statement.
(A) Consumer attitude can be summarized as evaluation of an object.
(B) Attitudes are learned.
(C) Attitudes are synonymous with behaviour.
(D) Attitudes have motivational qualities.
Ans: C
28. Who is considered Father of Scientific Management?
(A) Peter Drucker
(B) F.W. Taylor
(C) Victor Vroom
(D) Henry Fayol
Ans: B
29. Who did give the concept of hierarchy of needs?
(A) Fredrick Herzberg
(B) Victor Vroom
(C) Douglas Mcgregor
(D) A.H. Maslow
Ans: D
30. Assertion (A): Management is a continuous process.
Reason (R): Managers first plan, then organise and finally perform the function of controlling.
Codes:
(A) Both (A) and (R) are correct and (R) is correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not a correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
Ans: A
31. Induction of employees relates to
(A) Organisational awareness
(B) Training programme
(C) Introduction
(D) Assignment of duties
Ans: C
32. ‘Kinked’ demand curve is related with
(A) Monopoly
(B) Discriminating monopoly
(C) Oligopoly
(D) Perfect competition
Ans: C
33. Who is not associated with HRM?
(A) Michael J Jucius
(B) Dale Yodar
(C) Edvoin B. Flippo
(D) K.K. Devit
Ans: D
34. Merit rating is not known as
(A) Efficiency Rating
(B) Service Rating
(C) Job Rating
(D) Experience Rating
Ans: C
35. Match the items of List – I with the items of List – II.
List – I List – II
a. FEMA 1. 1986
b. Indian Factories Act 2. 1999
c. Industrial Dispute Act 3. 1948
d. Consumer Protection Act 4. 1947
Codes:
a b c d
(A) 4 2 3 1
(B) 3 1 2 4
(C) 2 3 4 1
(D) 1 4 3 2
Ans: C
36. If price of any commodity decreases by 20% and the demand for that commodity increases by 40%, then elasticity of demand would be
(A) Perfectly elastic
(B) Perfectly inelastic
(C) Unit elastic
(D) Highly elastic
Ans: D
37. Which of the following statements is true?
(A) In case of inferior goods, the income effect is negative, although the substitution effect is positive.
(B) In inferior goods, the income and substitution effects are positive.
(C) In inferior goods, the income and substitution effects are negative.
(D) In case of inferior goods, the income effect is positive although the substitution effect is negative.
Ans: A
38. In perfect competition, the demand curve of a firm is
(A) Vertical
(B) Horizontal
(C) Positively sloped
(D) Negatively sloped
Ans: B
39. Which one is not non-financial incentive?
(A) Additional bonus on minimum wasteful expenditure.
(B) Permanent job.
(C) Participatory decision making.
(D) Recognition of individuality.
Ans: A
40. HRM does not include
(A) Job evaluation
(B) Performance appraisal
(C) Sales promotion
(D) Job enrichment
Ans: C
41. The term (1-B) is called
(A) Level of the test
(B) Power of the test
(C) Size of the test
(D) None of the above
Ans: B
43. Sampling distribution of mean is very close to the standard normal distribution when
(A) Population is normally distributed.
(B) Population is not normally distributed, but sample size is large.
(C) Both (A) and (B).
(D) Neither (A) nor (B).
Ans: C
44. If the value of co-efficient of determination is 0.64, what is the value of coefficient of correlation?
(A) 0.40
(B) 0.80
(C) 0.08
(D) 0.04
Ans: B
45. Which one of the following is not a source of conflict in project ranking in capital budgeting decision as per NPV and IRR?
(A) Independent Investment Project
(B) No Capital Budget Constraints
(C) No time disparity
(D) None of the above
Ans: D
46. Match the following:
List – I List – II
a. Trade policy 1. Economic conditions
b. Trade flows 2. Economic policies
c. Price trends 3. Global linkages
d. Internal sectoral linkages 4. Structure and Nature of Economy
Codes:
a b c d
(A) 3 1 2 4
(B) 2 3 1 4
(C) 1 2 3 4
(D) 1 2 4 3
Ans: B
47. Which one of the following is not a benefit of privatisation?
(A) Encourage entrepreneurship.
(B) Concentration of economic power.
(C) Better management of enterprise.
(D) Freedom from bureaucracy.
Ans: B
48. ‘BOLT’ system in the Indian Securities market is related to
(A) National Stock Exchange
(B) Bombay Stock Exchange
(C) Over the Counter Exchange of India
(D) Multi Commodity Stock Exchange
Ans: B
49. Which one of the following is not a money market instrument?
(A) Commercial paper
(B) Participatory certificates
(C) Warrants
(D) Treasury Bills
Ans: C
50. Which one is related with micro financing?
(A) SHG
(B) Anganwadi workers
(C) Women Entrepreneurs
(D) None of the above
Ans: A
(A) Revenue Reserve
(B) Secret Reserve
(C) Capital Reserve
(D) General Reserve
Ans: C
2. Receipts and Payments Account is prepared by
(A) Manufacturing concerns
(B) Non-Trading concerns
(C) Trading concerns
(D) Companies registered under Companies Act, 1956
Ans: B
3. Owners equity stands for
(A) Fixed Assets minus Fixed Liabilities.
(B) Fixed Assets minus Current Liabilities.
(C) Current Assets minus Fixed Liabilities.
(D) Total Assets minus Total outside Liabilities.
Ans: D
4. When the Debt Turnover Ratio is 4, what is the average collection period?
(A) 5 months
(B) 4 months
(C) 3 months
(D) 2 months
Ans: C
5. Which of the following will result into sources of funds?
(i) Increase in current assets
(ii) Decrease in current assets
(iii) Increase in current liabilities
(iv) Decrease in current liabilities
Codes:
(A) (i) and (iv)
(B) (ii) and (iii)
(C) (i) and (iii)
(D) (ii) and (iv)
Ans: B
6. In marginal costing, contribution is equal to
(A) Sales – Fixed cost
(B) Sales – Variable cost
(C) Sales – Profit
(D) Sales – Variable Cost + Fixed cost
Ans: B
7. The funds available with a company after paying all claims including tax and dividend is called
(A) Net Profit
(B) Net Operating Profit
(C) Capital Profit
(D) Retained Earnings
Ans: D
8. Assertion (A): Accounting information refers to only events which are concerned with business firm.
Reason (R): Accounting information is presented in financial statements.
Codes:
(A) (A) is correct, but (R) is wrong.
(B) Both (A) and (R) are correct.
(C) (A) is wrong, but (R) is correct.
(D) Both (A) and (R) are wrong.
Ans: B
9. When average cost is declining
(A) Marginal cost must be declining.
(B) Marginal cost must be above average cost.
(C) Marginal cost must be below average cost.
(D) Marginal cost must be rising.
Ans: C
10. ABC Ltd. has declared 40% dividend. Which one of the following does it mean?
(A) The company has declared 40% of net profit as dividend.
(B) The company has declared 40% of profits after tax as dividend.
(C) The company will provide dividend 40% on issued capital.
(D) The company will provide dividend 40% on paid-up capital.
Ans: D
11. The main objective of Accounting Standards is
(A) To prepare the accounting reports which is easily understood by common man.
(B) To comply with the legal formalities.
(C) To harmonise the diversified accounting practices.
(D) To comply with the requirements of the International Accounting Standards (IAS).
Ans: C
12. Given below are two statements:
I. Activity ratios show where the company is going.
II. Balance Sheet ratios show how the company stand.
Codes:
(A) I is correct, but II is wrong.
(B) Both I and II are correct.
(C) I is wrong, but II is correct.
(D) Both I and II are wrong.
Ans: B
13. Income and Expenditure Account of non-profit organisation is a
(A) Real Account
(B) Nominal Account
(C) Personal Account
(D) Representative Personal Account
Ans: B
14. Which of the following statements are correct?
I. Inventory includes raw materials, finished goods and work – in – progress.
II. Inventory is a part of the working capital.
III. Inventory includes goods likely to be purchased.
Codes:
(A) I, II and III
(B) II and III
(C) I and III
(D) I and II
Ans: D
15. If the current ratio is 2: 1 and working capital is Rs. 60,000, what is the value of the Current Assets?
(A) Rs. 60,000
(B) Rs. 1, 00,000
(C) Rs. 1, 20,000
(D) Rs. 1, 80,000
Ans: C
16. Which of the following steps of purchase decision process is in sequence?
1. Problem recognition
2. Search for alternatives
3. Evaluation of alternatives
4. Purchase action
5. Post purchase action
Codes:
(A) 1, 3, 2, 4, 5
(B) 1, 2, 4, 3, 5
(C) 2, 1, 3, 5, 4
(D) 1, 2, 3, 4, 5
Ans: D
17. What is customer value?
(A) Ratio between the customer’s perceived benefits and the resources used to obtain these benefits.
(B) Excess of satisfaction over expectation.
(C) Post purchase dissonance
(D) None of the above
Ans: A
18. Match the items of List – I with items of List – II.
List – I List – II
a. The silent mental repetition of information. 1. Encoding
b. The process by which we select a word or visual image to represent a perceived object. 2. Rehearsal
c. Where information is kept temporarily before further processing. 3. Working Memory
d. The stage of real memory in which information is processed and held for just a brief period. 4. Store house
Codes:
a b c d
(A) 2 1 4 3
(B) 1 2 3 4
(C) 3 2 1 4
(D) 4 3 2 1
Ans: A
19. Fill in the blanks:
Statements Alternatives
a. Loyal customers’ ____ products. 1. Less attention
b. Loyal customers are ____ sensitive. 2. Cheaper
c. Loyal customers pay ____ to competitor’s advertising. 3. Less price
d. Serving existing customer is ____ 4. Buy more
Codes:
a b c d
(A) 3 1 2 4
(B) 4 3 1 2
(C) 2 1 3 4
(D) 4 3 2 1
Ans: B
20. Assertion (A): High customer expectations lead to dissatisfaction as product performance never matches them.
Reason (R): Product performance is always customer specific.
Codes:
(A) Both (A) and (R) are correct.
(B) Both (A) and (R) are incorrect.
(C) (A) is correct, but (R) is incorrect.
(D) (R) is correct, but (A) is incorrect.
Ans: B
21. Under which concept of marketing do you find greater emphasis on techniques and technology of production?
(A) Product
(B) Selling
(C) Marketing
(D) None
Ans: D
22. Which is used for short-term sales achievement?
(A) Personal selling
(B) Advertising
(C) Sales Promotion
(D) Public Relations
Ans: C
23. Public distribution system relates to
(A) Marketing system
(B) Retailing system
(C) Industrial system
(D) Selling system
Ans: B
24. Who do buy more, complain less, spread positive word of mouth, ensure a large customer base and repeat business?
(A) Satisfied customers
(B) Delighted customers
(C) Industrial customers
(D) None of the above
Ans: B
25. There are impulses which persuade a customer to buy certain products without evaluating the positive and negative value of the same.
(A) Emotional motives
(B) Blind motives
(C) Egoistic motives
(D) All the above
Ans: D
26. Which subject is relevant to the study of consumer behaviour?
(A) Economics
(B) Psychology
(C) Sociology
(D) All the above
Ans: D
27. Find an incorrect statement.
(A) Consumer attitude can be summarized as evaluation of an object.
(B) Attitudes are learned.
(C) Attitudes are synonymous with behaviour.
(D) Attitudes have motivational qualities.
Ans: C
28. Who is considered Father of Scientific Management?
(A) Peter Drucker
(B) F.W. Taylor
(C) Victor Vroom
(D) Henry Fayol
Ans: B
29. Who did give the concept of hierarchy of needs?
(A) Fredrick Herzberg
(B) Victor Vroom
(C) Douglas Mcgregor
(D) A.H. Maslow
Ans: D
30. Assertion (A): Management is a continuous process.
Reason (R): Managers first plan, then organise and finally perform the function of controlling.
Codes:
(A) Both (A) and (R) are correct and (R) is correct explanation of (A).
(B) Both (A) and (R) are correct, but (R) is not a correct explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
Ans: A
31. Induction of employees relates to
(A) Organisational awareness
(B) Training programme
(C) Introduction
(D) Assignment of duties
Ans: C
32. ‘Kinked’ demand curve is related with
(A) Monopoly
(B) Discriminating monopoly
(C) Oligopoly
(D) Perfect competition
Ans: C
33. Who is not associated with HRM?
(A) Michael J Jucius
(B) Dale Yodar
(C) Edvoin B. Flippo
(D) K.K. Devit
Ans: D
34. Merit rating is not known as
(A) Efficiency Rating
(B) Service Rating
(C) Job Rating
(D) Experience Rating
Ans: C
35. Match the items of List – I with the items of List – II.
List – I List – II
a. FEMA 1. 1986
b. Indian Factories Act 2. 1999
c. Industrial Dispute Act 3. 1948
d. Consumer Protection Act 4. 1947
Codes:
a b c d
(A) 4 2 3 1
(B) 3 1 2 4
(C) 2 3 4 1
(D) 1 4 3 2
Ans: C
36. If price of any commodity decreases by 20% and the demand for that commodity increases by 40%, then elasticity of demand would be
(A) Perfectly elastic
(B) Perfectly inelastic
(C) Unit elastic
(D) Highly elastic
Ans: D
37. Which of the following statements is true?
(A) In case of inferior goods, the income effect is negative, although the substitution effect is positive.
(B) In inferior goods, the income and substitution effects are positive.
(C) In inferior goods, the income and substitution effects are negative.
(D) In case of inferior goods, the income effect is positive although the substitution effect is negative.
Ans: A
38. In perfect competition, the demand curve of a firm is
(A) Vertical
(B) Horizontal
(C) Positively sloped
(D) Negatively sloped
Ans: B
39. Which one is not non-financial incentive?
(A) Additional bonus on minimum wasteful expenditure.
(B) Permanent job.
(C) Participatory decision making.
(D) Recognition of individuality.
Ans: A
40. HRM does not include
(A) Job evaluation
(B) Performance appraisal
(C) Sales promotion
(D) Job enrichment
Ans: C
41. The term (1-B) is called
(A) Level of the test
(B) Power of the test
(C) Size of the test
(D) None of the above
Ans: B
43. Sampling distribution of mean is very close to the standard normal distribution when
(A) Population is normally distributed.
(B) Population is not normally distributed, but sample size is large.
(C) Both (A) and (B).
(D) Neither (A) nor (B).
Ans: C
44. If the value of co-efficient of determination is 0.64, what is the value of coefficient of correlation?
(A) 0.40
(B) 0.80
(C) 0.08
(D) 0.04
Ans: B
45. Which one of the following is not a source of conflict in project ranking in capital budgeting decision as per NPV and IRR?
(A) Independent Investment Project
(B) No Capital Budget Constraints
(C) No time disparity
(D) None of the above
Ans: D
46. Match the following:
List – I List – II
a. Trade policy 1. Economic conditions
b. Trade flows 2. Economic policies
c. Price trends 3. Global linkages
d. Internal sectoral linkages 4. Structure and Nature of Economy
Codes:
a b c d
(A) 3 1 2 4
(B) 2 3 1 4
(C) 1 2 3 4
(D) 1 2 4 3
Ans: B
47. Which one of the following is not a benefit of privatisation?
(A) Encourage entrepreneurship.
(B) Concentration of economic power.
(C) Better management of enterprise.
(D) Freedom from bureaucracy.
Ans: B
48. ‘BOLT’ system in the Indian Securities market is related to
(A) National Stock Exchange
(B) Bombay Stock Exchange
(C) Over the Counter Exchange of India
(D) Multi Commodity Stock Exchange
Ans: B
49. Which one of the following is not a money market instrument?
(A) Commercial paper
(B) Participatory certificates
(C) Warrants
(D) Treasury Bills
Ans: C
50. Which one is related with micro financing?
(A) SHG
(B) Anganwadi workers
(C) Women Entrepreneurs
(D) None of the above
Ans: A
51. The conflicts in project ranking in capital budgeting as per NPV and IRR may arise because of
(A) Size disparity
(B) Time disparity
(C) Life disparity
(D) All the above
Ans: D
52. The degree of financial leverage reflects the responsiveness of
(A) Operating income to changes in total revenue
(B) EPS to changes in EBIT
(C) EPS to changes in total revenue
(D) None of the above
Ans: B
53. The overall capitalization rate and the cost of debt remain constant for all degrees of financial leverage is advocated by
(A) Traditional Approach
(B) Net Income Approach
(C) Net Operating Income Approach
(D) M-M-Approach
Ans: C
54. Which of the following is not included in the assumptions on which Myron Gordon proposed a model on stock valuation?
(A) Retained earnings, the only source of financing
(B) Finite life of the firm
(C) Taxes do not exist
(D) Constant rate of return on firm’s investment
Ans: B
55. Match the following:
List – I List – II
(i) Factoring services (a) Cash Management
(ii) Economic Order Quantity (b) Receivable Management
(iii) Commercial paper (c) Inventory Management
(d) Working Capital Financing
Codes:
(i) (ii) (iii)
(A) (a) (c) (b)
(B) (c) (b) (a)
(C) (b) (c) (d)
(D) (b) (a) (c)
Ans: C
56. Assertion (A): International business focuses on global resources, opportunities to buy/sell worldwide.
Reason (R): The efforts of IMF, World Bank and WTO to liberalise their economies led to globalisation.
Codes:
(A) Both (A) and (R) are true.
(B) Both (A) and (R) are false.
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Ans: A
57. Match the items of List – I with items of List – II:
List – I List – II
(i) Wider Market 1. Modes of Entry
(ii) Turn key Projects 2. Goal of International Business
(iii) Expanding theproductioncapacities 3. AdvantagesofInternationalBusiness
(iv) Geocentric approach 4. Stage of Globalisation
Codes:
i ii iii iv
(A) 4 2 3 1
(B) 3 1 2 4
(C) 1 2 3 4
(D) 4 3 2 1
Ans: B
58. BRICS includes
(A) Bhutan, Romania, Indonesia, Chile and South Korea
(B) Brazil, Russia, Indonesia, Chile and Sudan
(C) Brazil, Russia, India, China and South Africa
(D) Britain, Russia, India, Czechoslovakia, Sri Lanka
Ans: C
59. Out of the following, one is not related with WTO:
(A) TRIPS
(B) Ministerial Conference
(C) TRIMS
(D) TRAI
Ans: D
60. Balance of Payment includes components
(A) Current Account, Capital Account, Unilateral Payments Accounts, Official Settlement Account
(B) Revenue Account, P & L Account, Capital Account, Official Account
(C) Trade Account, Activity Account, Revenue Account, Currency Account
(D) Forex Account, Trade Account, Funds Account
Ans: A
61. Assertion (A): International Monetary Fund was set up in 1944.
Reason (R): To promote international monetary cooperation through a permanent institution this provides machinery for consultation and collaboration on international monetary problems.
Codes:
(A) Both (A) and (R) are false.
(B) Both (A) and (R) are true.
(C) (A) is true, but (R) is false.
(D) (R) is true, but (A) is false.
Ans: B
62. The commercial banks do not perform one function out of the following:
(A) Mobilisation of savings
(B) Giving Loans and Advances
(C) Issuing Currency Notes
(D) Financing Priority Sectors
Ans: C
63. There are two lists of items, match the items of List – I with items of List – II:
List – I List – II
I. Reserve Bank of India 1. NPA
II. EXIM Bank 2. Facilitating Small Scale Industries
III. SIDBI 3. Credit Control
IV. Capital Adequacy 4. Export/Import Financing
Codes:
I II III IV
(A) 1 2 3 4
(B) 4 3 2 1
(C) 2 3 4 1
(D) 3 4 2 1
Ans: D
64. One of the items is not related with e-banking:
(A) Demand Draft
(B) SPNS
(C) ECS
(D) ATM
Ans: A
65. Assertion (A): The Treasury Manager uses the derivatives in the Bond market as well as in Forex market.
Reason (R): It helps risk coverage.
Codes:
(A) Both (A) and (R) are false.
(B) Both (A) and (R) are true.
(C) (A) is true, but (R) is false.
(D) (R) is true, but (A) is false.
Ans: B
66. Factoring and forfeiting have not taken off in the Indian economy due to lack of expertise and experience. One is not included in the factoring services rendered.
(A) Purchase of book debts and receivables.
(B) Prepayment of debts partially or fully
(C) Giving advice
(D) Covering the credit risk of the suppliers
Ans: C
67. Which one is not the form of FDI?
(A) Purchase of existing assets in foreign currency
(B) New Investment in property, plant, equipment
(C) Making investment in the mutual funds
(D) Transfer of many types ofassets
Ans: C
68. Match the items of List – I with items of List – II:
List – I List – II
1. Measures towards globalization I. Globalisation
2. Off-shoring II. FEMA
3. FERA III. Liberalise the inflow of FDI
4. Mr. AruthurDunkel IV. Uruguay Round
Codes:
1 2 3 4
(A) III I II IV
(B) II I III IV
(C) IV II I III
(D) I II IV III
Ans: A
69. Which one of the following is not the advantage of MNCs to the host country?
(A) Increase in social activity
(B) Increase in economic activity
(C) Utilization of natural resources
(D) R & D efforts enhanced
Ans: A
70. India suffered from deficit balance both in trade balance and net invisibles, hence, took up a number of steps to manage this problem. Which one is not appropriate for this?
(A) Export control
(B) Current Account Convertibility
(C) Liberalized Export Policy
(D) Unified Exchange Rate
Ans: A
71. Mr. James, a citizen of U.S., arrived in India for the first time on 1st July, 2010 and left for Nepal on 15thDecember 2010. He arrived to India again on 1st January 2011 and stayed till the end of the financial year 2010-11. His residential status for the assessment year 2011-12 is
(A) Resident (ordinarily resident)
(B) Not ordinarily resident
(C) Non-resident
(D) None of the above
Ans: B
72. The value of free accommodation in Delhi provided by employer in the private sector is
(A) 10% of salary
(B) 15% of salary
(C) 20% of salary
(D) 25% of salary
Ans: B
73. Which of the following is not a capital asset under capital gains head of income?
(A) Stock in trade
(B) Goodwill of business
(C) Agricultural Land in Delhi
(D) Jewellery
Ans: A
74. Match the items of List – I with List – II:
List – I List – II
I. Tax Planning 1. Making suitable arrangement of TDS
II. Tax Avoidance 2. Understatement of Income
III. Tax Evasion 3. Availing deduction under Section 10A of IT Act.
IV. Tax Administration 4. Misinterpreting the provisions of the IT Act
Codes:
I II III IV
(A) 2 1 4 3
(B) 1 4 3 2
(C) 3 4 2 1
(D) 4 1 3 2
Ans: C
75. Under the Income Tax Act, 1961 unabsorbed depreciation can be carried forward for set-off purpose:
(A) For 4 years
(B) For 5 years
(C) For 8 years
(D) For unspecified period
Ans: D
76. Who is the fiscal agent and advisor to Government in monetary and financial matters?
(A) NABARD
(B) SBI
(C) RBI
(D) None of the above
Ans: C
77. Match the items of List – I with the items of List – II:
List – I List – II
(a) National Manufacturing Competitiveness Council (NMCC) (i) Industrial Licensing Policy
(b) National Investment Fund (NIP) (ii) Eleventh Five Year Plan
(c) The Industries (Development and Regulation) Act (IDRA), 1951 (iii) The Competition Act, 2002
(d) Increase in Employment (iv) Public Sector Undertakings
Codes:
(a) (b) (c) (d)
(A) (iv) (i) (ii) (iii)
(B) (iii) (iv) (i) (ii)
(C) (i) (ii) (iii) (iv)
(D) (iv) (iii) (ii) (i)
Ans: B
78. Kyoto Protocol pertains to
(A) Capital formulation
(B) Globalisation
(C) Environmental protection
(D) Unemployment reduction
Ans: C
79. Uruguay Round pertains to
(A) WTO
(B) IMF
(C) GATT
(D) World Bank
Ans: C
80. Which of the following are outside the scope of the Consumer Protection Act, 1986?
(A) Newspaper industry
(B) Services provided under contract of personal service
(C) Banking industry
(D) Both (A) and (B)
Ans: B
81. Which of the following is ‘true’ regarding the Prudence Principle of Accounting?
(A) Taking care of the future losses
(B) Taking care of the future profits
(C) Taking care of bad debts
(D) Taking care of inventory and depreciation
Ans: A
82. Which of the following is a non-operating expense?
(A) Salary of Managing Director
(B) Depreciation
(C) Advertisement expenditure
(D) Interest on loan
Ans: D
83. A and B are partners sharing profits in the ratio of 3 : 2. Their books showed good will at Rs. 3,000. C is admitted with ¼ th share of profits and brings Rs. 10,000 as his capital. But he is not able to bring in cash for his share of goodwill Rs. 3,000. How will you treat this?
(A) Goodwill is raised by Rs. 12,000
(B) C will remain as debtor for Rs. 3,000
(C) C’s A/c. is debited for Rs. 3,000
(D) Goodwill is raised by Rs. 9,000
Ans: D
84. If there is mutual indebtedness between the transferor company and the transferee company in business combination, which of the following is correct?
(A) No adjustment is required in the books of the transferor company.
(B) Adjustment is required in the books of the transferor company.
(C) No adjustment is required in the books of the transferee company.
(D) None of the above
Ans: A
85. Improvement of profit-volume ratio can be done by
(A) Increasing selling price
(B) Altering sales mixture
(C) Reducing variable cost
(D) All of the above
Ans: D
86. Business Economics is a subject which
(A) Studies economic relationships
(B) Studies economic activities at the aggregate level
(C) Deals with the tools of economics used for decision making in business
(D) Studies optimum allocation of limited resources
Ans: C
87. Match List – I with List – II and select the correct code for the answer:
List – I List – II
(a) Cross elasticity is zero (i) Price = AVC
(b) Shut-down point (ii) Two commodities are independent
(c) Slutsky theorem (iii) Transformation line
(d) Production Possibility Curve (iv) Substitution effect
Codes:
(a) (b) (c) (d)
(A) (ii) (iv) (i) (iii)
(B) (iii) (ii) (iv) (i)
(C) (i) (iii) (ii) (iv)
(D) (ii) (i) (iv) (iii)
Ans: D
88. Assertion (A): The demand curve has negative slope showing inverse relationship between price and the quantity demanded.
Reason (R): This applies only to Giffen goods.
Codes:
(A) Both (A) and (R) are true.
(B) (A) is true, but (R) is false.
(C) (A) is false, but (R) is true.
(D) Both (A) and (R) are false.
Ans: B
89. Match the items in List – I with those in List – II and select the correct code for the answer:
List – I List – II
(a) Monopoly (i) Price Taker
(b) Monopolistic competition (ii) Homogeneous product’s price maker
(c) Perfect competition (iii) Heterogeneous product
(d) Oligopoly (iv) Price Rigidity
Codes:
(a) (b) (c) (d)
(A) (ii) (iii) (i) (iv)
(B) (i) (ii) (iv) (iii)
(C) (iii) (iv) (ii) (i)
(D) (iv) (i) (iii) (ii)
Ans: A
90. Match the following items in List – I with most suitable options in List – II:
List – I List – II
(a) Fisher (i) Inverse probability
(b) Karl Pearson (ii) Normal Distribution
(c) Thomas Baye’s (iii) Correlation Coefficient
(d) Karl Gauss (iv) Index Numbers
Codes:
(a) (b) (c) (d)
(A) (iv) (iii) (ii) (i)
(B) (iv) (iii) (i) (ii)
(C) (iv) (ii) (iii) (i)
(D) (iv) (ii) (i) (iii)
Ans: B
91. The law of statistics, which says ‘Moderately large number of items chosen at random from a large group possess the characteristics of the large group’, is referred to as:
(A) The Central Limit Theorem
(B) The Law of Statistical Regularity
(C) The Law of Inertia of Large Numbers
(D) None of the above
Ans: B
92. A distribution, where the value of arithmetic mean is maximum as compared to median and mode, is
(A) Normal distribution
(B) Positively-skewed distribution
(C) Negatively-skewed distribution
(D) None of these
Ans: B
93. The most appropriate average to be used to compute the average rate of growth in population is
(A) Arithmetic mean
(B) Median
(C) Geometric mean
(D) Harmonic mean
Ans: C
94. “The life expectancy of people in Kerala is more than that of Tamil Nadu.” This statement is an example of
(A) Descriptive Hypothesis
(B) Causal Hypothesis
(C) Correlational Hypothesis
(D) None of the above
Ans: C
95. Match the items of List – I with the items of List – II and choose the correct answer:
List – I List – II
(a) Intrapersonal communication (i) Information sharing
(b) Element of a communication event (ii) Development of ‘will’ to work
(c) Objective of organisational communication (iii) Thinking
(d) Goals of organisational communication (iv) Purpose
Codes:
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (iii) (iv) (ii) (i)
(C) (ii) (iii) (i) (iv)
(D) (iv) (iii) (ii) (i)
Ans: B
96. According to the Boston Consulting Group, a business which has a high growth rate but a weak market share is referred to as a
(A) Cash Cow
(B) Dog
(C) Question Mark
(D) Star
Ans: C
97. ‘No ideas are ever criticized’ and ‘the more radical the ideas are the better’ – are the rules of which decision making process?
(A) Programmed decision-making
(B) Non-programmed decision making
(C) Brainstorming
(D) Group discussion
Ans: C
98. According to McClelland’s Needs Theory, which of the following is not a motivating need?
(A) Need for Power
(B) Need for Security
(C) Need for Achievement
(D) Need for Affiliation
Ans: B
99. In the managerial grid, developed by Blake and Mouton, a manager who has high consideration for production but little concern for people is known as
(A) 1.1 Management
(B) 1.9 Management
(C) 9.1 Management
(D) 5.5 Management
Ans: C
100. A company is planning to enter a foreign market. Which of the following entry strategies will give it the maximum control?
(A) Direct export
(B) Direct investment
(C) Financing
(D) Licensing
Ans: B
(A) Size disparity
(B) Time disparity
(C) Life disparity
(D) All the above
Ans: D
52. The degree of financial leverage reflects the responsiveness of
(A) Operating income to changes in total revenue
(B) EPS to changes in EBIT
(C) EPS to changes in total revenue
(D) None of the above
Ans: B
53. The overall capitalization rate and the cost of debt remain constant for all degrees of financial leverage is advocated by
(A) Traditional Approach
(B) Net Income Approach
(C) Net Operating Income Approach
(D) M-M-Approach
Ans: C
54. Which of the following is not included in the assumptions on which Myron Gordon proposed a model on stock valuation?
(A) Retained earnings, the only source of financing
(B) Finite life of the firm
(C) Taxes do not exist
(D) Constant rate of return on firm’s investment
Ans: B
55. Match the following:
List – I List – II
(i) Factoring services (a) Cash Management
(ii) Economic Order Quantity (b) Receivable Management
(iii) Commercial paper (c) Inventory Management
(d) Working Capital Financing
Codes:
(i) (ii) (iii)
(A) (a) (c) (b)
(B) (c) (b) (a)
(C) (b) (c) (d)
(D) (b) (a) (c)
Ans: C
56. Assertion (A): International business focuses on global resources, opportunities to buy/sell worldwide.
Reason (R): The efforts of IMF, World Bank and WTO to liberalise their economies led to globalisation.
Codes:
(A) Both (A) and (R) are true.
(B) Both (A) and (R) are false.
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Ans: A
57. Match the items of List – I with items of List – II:
List – I List – II
(i) Wider Market 1. Modes of Entry
(ii) Turn key Projects 2. Goal of International Business
(iii) Expanding theproductioncapacities 3. AdvantagesofInternationalBusiness
(iv) Geocentric approach 4. Stage of Globalisation
Codes:
i ii iii iv
(A) 4 2 3 1
(B) 3 1 2 4
(C) 1 2 3 4
(D) 4 3 2 1
Ans: B
58. BRICS includes
(A) Bhutan, Romania, Indonesia, Chile and South Korea
(B) Brazil, Russia, Indonesia, Chile and Sudan
(C) Brazil, Russia, India, China and South Africa
(D) Britain, Russia, India, Czechoslovakia, Sri Lanka
Ans: C
59. Out of the following, one is not related with WTO:
(A) TRIPS
(B) Ministerial Conference
(C) TRIMS
(D) TRAI
Ans: D
60. Balance of Payment includes components
(A) Current Account, Capital Account, Unilateral Payments Accounts, Official Settlement Account
(B) Revenue Account, P & L Account, Capital Account, Official Account
(C) Trade Account, Activity Account, Revenue Account, Currency Account
(D) Forex Account, Trade Account, Funds Account
Ans: A
61. Assertion (A): International Monetary Fund was set up in 1944.
Reason (R): To promote international monetary cooperation through a permanent institution this provides machinery for consultation and collaboration on international monetary problems.
Codes:
(A) Both (A) and (R) are false.
(B) Both (A) and (R) are true.
(C) (A) is true, but (R) is false.
(D) (R) is true, but (A) is false.
Ans: B
62. The commercial banks do not perform one function out of the following:
(A) Mobilisation of savings
(B) Giving Loans and Advances
(C) Issuing Currency Notes
(D) Financing Priority Sectors
Ans: C
63. There are two lists of items, match the items of List – I with items of List – II:
List – I List – II
I. Reserve Bank of India 1. NPA
II. EXIM Bank 2. Facilitating Small Scale Industries
III. SIDBI 3. Credit Control
IV. Capital Adequacy 4. Export/Import Financing
Codes:
I II III IV
(A) 1 2 3 4
(B) 4 3 2 1
(C) 2 3 4 1
(D) 3 4 2 1
Ans: D
64. One of the items is not related with e-banking:
(A) Demand Draft
(B) SPNS
(C) ECS
(D) ATM
Ans: A
65. Assertion (A): The Treasury Manager uses the derivatives in the Bond market as well as in Forex market.
Reason (R): It helps risk coverage.
Codes:
(A) Both (A) and (R) are false.
(B) Both (A) and (R) are true.
(C) (A) is true, but (R) is false.
(D) (R) is true, but (A) is false.
Ans: B
66. Factoring and forfeiting have not taken off in the Indian economy due to lack of expertise and experience. One is not included in the factoring services rendered.
(A) Purchase of book debts and receivables.
(B) Prepayment of debts partially or fully
(C) Giving advice
(D) Covering the credit risk of the suppliers
Ans: C
67. Which one is not the form of FDI?
(A) Purchase of existing assets in foreign currency
(B) New Investment in property, plant, equipment
(C) Making investment in the mutual funds
(D) Transfer of many types ofassets
Ans: C
68. Match the items of List – I with items of List – II:
List – I List – II
1. Measures towards globalization I. Globalisation
2. Off-shoring II. FEMA
3. FERA III. Liberalise the inflow of FDI
4. Mr. AruthurDunkel IV. Uruguay Round
Codes:
1 2 3 4
(A) III I II IV
(B) II I III IV
(C) IV II I III
(D) I II IV III
Ans: A
69. Which one of the following is not the advantage of MNCs to the host country?
(A) Increase in social activity
(B) Increase in economic activity
(C) Utilization of natural resources
(D) R & D efforts enhanced
Ans: A
70. India suffered from deficit balance both in trade balance and net invisibles, hence, took up a number of steps to manage this problem. Which one is not appropriate for this?
(A) Export control
(B) Current Account Convertibility
(C) Liberalized Export Policy
(D) Unified Exchange Rate
Ans: A
71. Mr. James, a citizen of U.S., arrived in India for the first time on 1st July, 2010 and left for Nepal on 15thDecember 2010. He arrived to India again on 1st January 2011 and stayed till the end of the financial year 2010-11. His residential status for the assessment year 2011-12 is
(A) Resident (ordinarily resident)
(B) Not ordinarily resident
(C) Non-resident
(D) None of the above
Ans: B
72. The value of free accommodation in Delhi provided by employer in the private sector is
(A) 10% of salary
(B) 15% of salary
(C) 20% of salary
(D) 25% of salary
Ans: B
73. Which of the following is not a capital asset under capital gains head of income?
(A) Stock in trade
(B) Goodwill of business
(C) Agricultural Land in Delhi
(D) Jewellery
Ans: A
74. Match the items of List – I with List – II:
List – I List – II
I. Tax Planning 1. Making suitable arrangement of TDS
II. Tax Avoidance 2. Understatement of Income
III. Tax Evasion 3. Availing deduction under Section 10A of IT Act.
IV. Tax Administration 4. Misinterpreting the provisions of the IT Act
Codes:
I II III IV
(A) 2 1 4 3
(B) 1 4 3 2
(C) 3 4 2 1
(D) 4 1 3 2
Ans: C
75. Under the Income Tax Act, 1961 unabsorbed depreciation can be carried forward for set-off purpose:
(A) For 4 years
(B) For 5 years
(C) For 8 years
(D) For unspecified period
Ans: D
76. Who is the fiscal agent and advisor to Government in monetary and financial matters?
(A) NABARD
(B) SBI
(C) RBI
(D) None of the above
Ans: C
77. Match the items of List – I with the items of List – II:
List – I List – II
(a) National Manufacturing Competitiveness Council (NMCC) (i) Industrial Licensing Policy
(b) National Investment Fund (NIP) (ii) Eleventh Five Year Plan
(c) The Industries (Development and Regulation) Act (IDRA), 1951 (iii) The Competition Act, 2002
(d) Increase in Employment (iv) Public Sector Undertakings
Codes:
(a) (b) (c) (d)
(A) (iv) (i) (ii) (iii)
(B) (iii) (iv) (i) (ii)
(C) (i) (ii) (iii) (iv)
(D) (iv) (iii) (ii) (i)
Ans: B
78. Kyoto Protocol pertains to
(A) Capital formulation
(B) Globalisation
(C) Environmental protection
(D) Unemployment reduction
Ans: C
79. Uruguay Round pertains to
(A) WTO
(B) IMF
(C) GATT
(D) World Bank
Ans: C
80. Which of the following are outside the scope of the Consumer Protection Act, 1986?
(A) Newspaper industry
(B) Services provided under contract of personal service
(C) Banking industry
(D) Both (A) and (B)
Ans: B
81. Which of the following is ‘true’ regarding the Prudence Principle of Accounting?
(A) Taking care of the future losses
(B) Taking care of the future profits
(C) Taking care of bad debts
(D) Taking care of inventory and depreciation
Ans: A
82. Which of the following is a non-operating expense?
(A) Salary of Managing Director
(B) Depreciation
(C) Advertisement expenditure
(D) Interest on loan
Ans: D
83. A and B are partners sharing profits in the ratio of 3 : 2. Their books showed good will at Rs. 3,000. C is admitted with ¼ th share of profits and brings Rs. 10,000 as his capital. But he is not able to bring in cash for his share of goodwill Rs. 3,000. How will you treat this?
(A) Goodwill is raised by Rs. 12,000
(B) C will remain as debtor for Rs. 3,000
(C) C’s A/c. is debited for Rs. 3,000
(D) Goodwill is raised by Rs. 9,000
Ans: D
84. If there is mutual indebtedness between the transferor company and the transferee company in business combination, which of the following is correct?
(A) No adjustment is required in the books of the transferor company.
(B) Adjustment is required in the books of the transferor company.
(C) No adjustment is required in the books of the transferee company.
(D) None of the above
Ans: A
85. Improvement of profit-volume ratio can be done by
(A) Increasing selling price
(B) Altering sales mixture
(C) Reducing variable cost
(D) All of the above
Ans: D
86. Business Economics is a subject which
(A) Studies economic relationships
(B) Studies economic activities at the aggregate level
(C) Deals with the tools of economics used for decision making in business
(D) Studies optimum allocation of limited resources
Ans: C
87. Match List – I with List – II and select the correct code for the answer:
List – I List – II
(a) Cross elasticity is zero (i) Price = AVC
(b) Shut-down point (ii) Two commodities are independent
(c) Slutsky theorem (iii) Transformation line
(d) Production Possibility Curve (iv) Substitution effect
Codes:
(a) (b) (c) (d)
(A) (ii) (iv) (i) (iii)
(B) (iii) (ii) (iv) (i)
(C) (i) (iii) (ii) (iv)
(D) (ii) (i) (iv) (iii)
Ans: D
88. Assertion (A): The demand curve has negative slope showing inverse relationship between price and the quantity demanded.
Reason (R): This applies only to Giffen goods.
Codes:
(A) Both (A) and (R) are true.
(B) (A) is true, but (R) is false.
(C) (A) is false, but (R) is true.
(D) Both (A) and (R) are false.
Ans: B
89. Match the items in List – I with those in List – II and select the correct code for the answer:
List – I List – II
(a) Monopoly (i) Price Taker
(b) Monopolistic competition (ii) Homogeneous product’s price maker
(c) Perfect competition (iii) Heterogeneous product
(d) Oligopoly (iv) Price Rigidity
Codes:
(a) (b) (c) (d)
(A) (ii) (iii) (i) (iv)
(B) (i) (ii) (iv) (iii)
(C) (iii) (iv) (ii) (i)
(D) (iv) (i) (iii) (ii)
Ans: A
90. Match the following items in List – I with most suitable options in List – II:
List – I List – II
(a) Fisher (i) Inverse probability
(b) Karl Pearson (ii) Normal Distribution
(c) Thomas Baye’s (iii) Correlation Coefficient
(d) Karl Gauss (iv) Index Numbers
Codes:
(a) (b) (c) (d)
(A) (iv) (iii) (ii) (i)
(B) (iv) (iii) (i) (ii)
(C) (iv) (ii) (iii) (i)
(D) (iv) (ii) (i) (iii)
Ans: B
91. The law of statistics, which says ‘Moderately large number of items chosen at random from a large group possess the characteristics of the large group’, is referred to as:
(A) The Central Limit Theorem
(B) The Law of Statistical Regularity
(C) The Law of Inertia of Large Numbers
(D) None of the above
Ans: B
92. A distribution, where the value of arithmetic mean is maximum as compared to median and mode, is
(A) Normal distribution
(B) Positively-skewed distribution
(C) Negatively-skewed distribution
(D) None of these
Ans: B
93. The most appropriate average to be used to compute the average rate of growth in population is
(A) Arithmetic mean
(B) Median
(C) Geometric mean
(D) Harmonic mean
Ans: C
94. “The life expectancy of people in Kerala is more than that of Tamil Nadu.” This statement is an example of
(A) Descriptive Hypothesis
(B) Causal Hypothesis
(C) Correlational Hypothesis
(D) None of the above
Ans: C
95. Match the items of List – I with the items of List – II and choose the correct answer:
List – I List – II
(a) Intrapersonal communication (i) Information sharing
(b) Element of a communication event (ii) Development of ‘will’ to work
(c) Objective of organisational communication (iii) Thinking
(d) Goals of organisational communication (iv) Purpose
Codes:
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (iii) (iv) (ii) (i)
(C) (ii) (iii) (i) (iv)
(D) (iv) (iii) (ii) (i)
Ans: B
96. According to the Boston Consulting Group, a business which has a high growth rate but a weak market share is referred to as a
(A) Cash Cow
(B) Dog
(C) Question Mark
(D) Star
Ans: C
97. ‘No ideas are ever criticized’ and ‘the more radical the ideas are the better’ – are the rules of which decision making process?
(A) Programmed decision-making
(B) Non-programmed decision making
(C) Brainstorming
(D) Group discussion
Ans: C
98. According to McClelland’s Needs Theory, which of the following is not a motivating need?
(A) Need for Power
(B) Need for Security
(C) Need for Achievement
(D) Need for Affiliation
Ans: B
99. In the managerial grid, developed by Blake and Mouton, a manager who has high consideration for production but little concern for people is known as
(A) 1.1 Management
(B) 1.9 Management
(C) 9.1 Management
(D) 5.5 Management
Ans: C
100. A company is planning to enter a foreign market. Which of the following entry strategies will give it the maximum control?
(A) Direct export
(B) Direct investment
(C) Financing
(D) Licensing
Ans: B