COMMERCE PAGE 6
Commerce Page 6- MCQs
1. The first macro-environmental force that a business firm generally monitors is
(A) Economic environment
(B) Demographic environment
(C) Technological environment
(D) International, Political environment
Ans: B
2. Which of the following statements is true?
(A) The highest growth rate in India is in the Manufacturing Sector.
(B) Agricultural Sector has the highest share in the GDP in India.
(C) The biggest source of Central Government’s revenue is Central Excise.
(D) None of the above.
Ans: C
3. Which of the following statements is true?
(A) The Competition Commission of India is headed by a person having Judicial background. (B) The definition of the term ‘goods’ as given in the Competition Act, 2002, is the same as given in the Sale of Goods Act, 1930.
(C) Both (A) and (B) are true.
(D) None of the above is true.
Ans: D
4. Which one of the following is not included in the Consumer Rights as per the Consumer Protection Act, 1986?
(A) Right to be protected against marketing of hazardous goods and services.
(B) Right to be heard.
(C) Right to a physical environment that will protect and enhance quality of life.
(D) Right to seek redressal of legitimate complaints.
Ans: C
5. A consumer can file a complaint under the Consumer Protection Act, 1986, on any of the following grounds except:
(A) Sale of defective goods
(B) Provision of deficient service
(C) Charging very high price
(D) Unfair trade practice
Ans: C
6. Financial statements provide a true and fair view if
(A) It is free from any material error and bias.
(B) It is prepared using the appropriate accounting policy and applicable accounting standards.
(C) It is prescribed in the format prescribed by the regulator or, in the absence of a prescribed format, it is prepared in a manner that facilitates analyses of the financial position and the performance of the reporting enterprise.
(D) It conforms to all of the above (A), (B) and (C).
Ans: D
7. Which of the formula is used to calculate Absolute Liquid Ratio is?
(A) Current Assets, Loans & Advances-Inventories /Current Liabilities & Provisions-Bank Overdraft
(B) Current Assets, Loans & Advances /Current Liabilities & Provisions
(C) Absolute Liquid Assets /Current Liabilities
(D) Absolute Liquid Assets /Quick Liabilities
Ans: C
8. A company sells its product at Rs. 15 per unit. In a period if it produces and sells 8,000 units, it incurs a loss of Rs. 5 per unit. If the volume is raised to 20,000 units it earns a profit of Rs. 4.
Variable cost per unit will be
(A) Rs. 9 per unit
(B) Rs. 4.5 per unit
(C) Rs. 5 per unit
(D) Rs. 6 per unit
Ans: C
9. Which of the following is a sub variance of labour efficiency variance?
(A) Idle time variance
(B) Labour-mix variance
(C) Labour-yield variance
(D) All of the above
Ans: D
10. An investment centre is a responsibility centre where the manager has control over
(A) Costs
(B) Costs and profits
(C) Costs, profits and product quality
(D) Costs, profits and assets
Ans: C
11. According to H.A. Simon, if a firm fails to achieve its target initially, it results in
(A) Search behaviour
(B) Sense of helplessness
(C) Appropriate revision of aspiration level.
(D) Sacking of its managerial team
Ans: A
12. When the demand curve is relatively highly elastic, the marginal revenue is
(A) Zero
(B) Unity
(C) Positive
(D) Negative
Ans: C
13. In which one of the following market situations the practice of price rigidity is found?
(A) Perfectly competitive market
(B) Monopolistic competitive market
(C) Oligopoly market
(D) Discriminating monopoly market
Ans: C
14. During short-run, the optimum level of output corresponds to that level of output where
(A) MC is the minimum
(B) AVC is the minimum
(C) AC is the minimum
(D) AFC stops declining
Ans: C
15. The opportunity cost is a term which describes
(A) A bargain price for a factor of production.
(B) Production cost related at the optimum level of production.
(C) Average variable cost.
(D) The loss of the reward in the next best use of that resource.
Ans: D
16. The collapse of which of the following systems is related to the Triffin Paradox?
(A) Gold Standard
(B) Exchange rate mechanism (in 1992)
(C) Bretton Woods
(D) None of the above
Ans: C
17. A time series is a set of data collected at
(A) Random intervals
(B) Regular intervals
(C) Convenient intervals
(D) All of the above
Ans: B
18. Given the following data calculate the regression coefficient of X on Y. Pearson’s correlation coefficient = + 0.8. Regression coefficient of Y on X = 0.8
Choose the correct answer from the following:
(A) 0.32
(B) 0.64
(C) 0.80
(D) 0.82
Ans: C
19. Which kind of test from the following options is the right test to use when the hypotheses for testing are stated as:
H0: Population mean is equal to the sample mean.
H1: Population mean is not equal to the sample mean.
(A) One-tailed test
(B) Two-tailed test
(C) Either one tailed or two tailed test
(D) None of the above
Ans: B
20. The steps in data processing are given below:
Choose the correct sequence of steps in data processing from the following options:
(i) Data Storage
(ii) Data Validation
(iii) Data Capture
(iv) Report Generation
(v) Data Manipulation
(A) (i), (ii), (iii), (iv), (v)
(B) (ii), (i), (iii), (iv), (v)
(C) (iii), (i), (ii), (iv), (v)
(D) (iii), (ii), (i), (v), (iv)
Ans: D
21. Which of the following steps are essential in the staffing process?
1. Hiring the right kind of people.
2. Firing the non-performing employees.
3. Developing skills of the employees through training.
4. Collective bargaining.
5. Maintaining the employees by creating favourable conditions of work.
Codes:
(A) 1, 3 and 5
(B) 1, 2 and 3
(C) 3, 4 and 5
(D) 2, 3 and 4
Ans: A
22. F.W Taylor
1. Viewed man as an adjunct of man.
2. Completely neglected the psychological aspects.
3. Emphasized only a limited number of the psychological variables.
4. Under-estimated the meaning of human motivation.
Select the correct answer from the following:
(A) 1, 2 and 3
(B) 3, 2 and 4
(C) 1, 2, 3 and 4
(D) 1 and 4
Ans: C
23. The authoritarian leadership style goes with
(A) Theory X
(B) Theory Y
(C) Theory Z
(D) None of these
Ans: A
24. Select the four stages of group development from the following:
1. Forming
2. Storming
3. Discussing
4. Norming
5. Warning
6. Performing
Codes:
(A) 1, 2, 3 and 5
(B) 2, 3, 4 and 6
(C) 3, 4, 5 and 6
(D) 1, 2, 4 and 6
Ans: D
25. Match the following:
List – I List – II
(a) To check the quality of work. 1. Speed boss
(b) To see that work is completed in time. 2. Inspection
(c) To check absenteeism of workers. 3. Instruction clerk
(d) To issue instruction regarding method of work 4. Shop discipline
Codes:
(a) (b) (c) (d)
(A) 3 2 1 4
(B) 2 1 4 3
(C) 2 1 3 4
(D) 4 3 1 2
Ans: B
26. A company plans to create the largest possible total sales volume. It should use
(A) Concentrated marketing
(B) Differentiated marketing
(C) Homogeneous marketing
(D) Undifferentiated marketing
Ans: B
27. The third stage in the consumer buying decision process is
(A) Evaluation of alternatives
(B) Information search
(C) Purchase decision
(D) None of the above
Ans: A
28. Manufacturers of convenience goods typically seek ______ distribution.
(A) Exclusive
(B) Intensive
(C) Restrictive
(D) Selective
Ans: B
29. Which promotional tool is most cost effective when a product is in the decline stage of its product life cycle?
(A) Advertising
(B) Personal selling
(C) Public relations
(D) Sales promotion
Ans: D
30. Match the items of List-I with those of List-II.
List – I List – II
(a) Product support service (i) Information Technology Act 2000
(b) Interviewers’ bias (ii) Information Search
(c) On-line advertising (iii) Marketing Research
(d) Personal sources (iv) User’s Manual Indicate the correct matching.
(a) (b) (c) (d)
(A) (iv) (iii) (ii) (i)
(B) (iv) (iii) (i) (ii)
(C) (i) (ii) (iii) (iv)
(D) (ii) (iii) (iv) (i)
Ans: B
31. Match the items of List-I with the items of List-II.
List – I List – II
(a) A theory of capital structure in which the weighted average cost of capital and the total value of the firm remains constant as financial leverage is changed. I. Capital Asset Pricing Model
(b) The value of the geared company will always be greater than an ungeared company with similar business risk but only by the amount of debt associated tax savings of the geared company. II. Traditional Approach
(c) Capital structure that minimizes the firm’s cost of capital and thereby maximizes the value of the firm III. Net Operating Income Approach
(d) Share price is independent of the degree of financial leverage. IV. Modigliani-Miller Theory and Corporate Taxation
Codes:
(I) (II) (III) (IV)
(A) (c) (d) (b) (a)
(B) (d) (c) (a) (b)
(C) (a) (b) (c) (d)
(D) (b) (a) (d) (c)
Ans: B
32. Which one of the following expression represents a correct matching?
(A) A decrease in the proportional claim on earnings and assets of a share of common stock due to the issuance of additional shares: Dilution.
(B) Anticipated annual dividend divided by the total book value of the firm: Dividend Yield.
(C) When a shareholder receives lesser number of new shares in exchange for a given number of old shares: Stock split.
(D) The costs associated with issuing securities, such as underwriting, legal, listing and printing fees: Transaction Costs.
Ans: A
33. When the internal rate of return of a project is more than the hurdle rate, the Net Present Value would be:
(A) Zero
(B) Positive
(C) Negative
(D) Uncertain
Ans: B
34. Statement I: The presence of fixed operating costs in the operating cost structure of a firm regardless of the volume denotes the presence of financial leverage.
Statement II: Super leverage is the result of the multiplicative combination of the degree of operating leverage and financial leverage.
Codes:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, but Statement II is false.
(D) Statement I is false, but Statement II is true.
Ans: D
35. Which one of the following expressions has incorrect matching?
(A) A method of financing where each asset would be offset with a financing instrument of the same approximate maturity: Hedging Approach.
(B) A method of financing where all long term funds are used to finance the current assets: Aggressive Approach.
(C) The amount of current assets required to meet a firm’s long term minimum needs: Permanent working capital.
(D) Trade credit and other payables that arise in the firm’s day to day operations: Spontaneous Financing.
Ans: B
36. The Equal Remuneration Act, 1976 is primarily applicable to workers working on
(A) Monthly wage basis
(B) Annual wage basis
(C) Daily wage basis
(D) Contractual wage basis
Ans: B
37. In comparing Maslow’s and Hertzberg’s Theories of Motivation, which motivators of Hertzberg are similar to the need specified by Maslow?
(A) Affiliation needs
(B) Physiological needs
(C) Security needs
(D) Self-actualisation needs
Ans: D
38. The managerial function of staffing is most closely related to
(A) Controlling
(B) Leading
(C) Marketing
(D) Organising
Ans: D
39. The ‘staffing function’ does not include:
(A) Performance appraisal
(B) Placement
(C) Selection
(D) Span of control
Ans: D
40. On-the-job training does not include
(A) Job rotation
(B) Planned progression
(C) Sensitivity training
(D) Temporary promotion
Ans: C
41. Generally the following are the important items appearing on the assets side of the Balance Sheet of a Commercial Bank.
(a) Cash in hand
(b) Bills discounted
(c) Money at call and short notice
(d) Loans and advances
(e) Investments
Which of the following sequence is correct in the order of liquidity?
(A) (a), (b), (d), (c) and (e)
(B) (a), (c), (b), (e) and (d)
(C) (b), (d), (c), (a) and (e)
(D) (c), (d), (b), (e) and (a)
Ans: B
42. Which one of the following is not a correct method of calculating profitability ratio in banking sector?
(A) Burden ratio = Man power expenses ratio + other establishment expenditure ratio – non interest income ratio.
(B) Profitability ratio = Spread ratio – burden ratio
(C) Spread ratio = Interest earned ratio + Interest paid ratio
(D) Interest earned ratio = Interest earned/volume of business
Ans: C
43. Capital adequacy norm is expressed as a percentage of
(A) Standard Assets
(B) Risk adjusted Assets
(C) Sub-standard Assets
(D) Investments
Ans: B
44. The major sources of funds for IFCI Ltd. (during the year 2011-12) are given below:
(i) Reserves and Surpluses
(ii) Borrowings in Rupees
(iii) Share Capital
(iv) Borrowings in Foreign Currency
Which of the following sequence is correct?
(A) (i), (iii), (iv) and (ii)
(B) (iii), (i), (ii) and (iv)
(C) (ii), (i), (iii) and (iv)
(D) (iv), (ii), (i) and (iii)
Ans: C
45. The Bonds and Debentures issued by State Financial Corporations are guaranteed by
(A) Reserve Bank of India
(B) IDBI
(C) Central Government
(D) State Government
Ans: D
46. Items given are related to international trade theories. Match the items in List-A with most suitable options in List-B.
List – A List – B
(a) ‘Zero-sum’ game (i) Factor proportion theory
(b) Labour-Capital relationship (ii) Mercantilism theory
(c) Relative efficiencies of the producing countries (iii) Theory of ‘Absolute advantage’
(d) ‘Positive-sum’ game (iv) Theory of Comparative advantage
Codes:
(a) (b) (c) (d)
(A) (iii) (iv) (i) (ii)
(B) (ii) (iii) (iv) (i)
(C) (ii) (i) (iv) (iii)
(D) (iv) (i) (ii) (iii)
Ans: C
47. The following are the stages in international business entry process. Arrange them in correct sequence.
(i) Direct experience
(ii) In-depth scrutiny
(iii) Country identification
(iv) Preliminary screening
(v) Final selection
Codes:
(A) (iv), (iii), (i), (ii), (v)
(B) (iii), (iv), (i), (ii), (v)
(C) (iii), (iv), (ii), (v), (i)
(D) (iii), (iv), (v), (ii), (i)
Ans: C
48. Which of the following intellectual properties were covered under Uruguay Round Agreement on TRIPS?
(i) Copy rights
(ii) Trade marks
(iii) Industrial designs
(iv) Undisclosed information, including trade secrets
Codes:
(A) (i) and (ii) only
(B) (i), (ii) and (iii)
(C) (ii), (iii) and (iv)
(D) (i), (ii), (iii) and (iv)
Ans: D
49. Which of the following statements is true?
(A) If the absolute Purchasing Power Parity (PPP) holds good, then the relative PPP also holds good.
(B) If the relative PPP holds good, then the absolute PPP also holds good.
(C) If the absolute PPP does not hold good, then the relative PPP also will not hold good.
(D) If the absolute PPP holds good, then the relative PPP may or may not hold good.
Ans: A
50. Which of the following is/are the assumptions of the Law of One Price?
(i) Restriction on the movement of goods between countries.
(ii) No transportation costs.
(iii) No tariffs
(A) Both (i) and (ii)
(B) Only (i)
(C) Both (ii) and (iii)
(D) (i), (ii) and (iii)
Ans: C
(A) Economic environment
(B) Demographic environment
(C) Technological environment
(D) International, Political environment
Ans: B
2. Which of the following statements is true?
(A) The highest growth rate in India is in the Manufacturing Sector.
(B) Agricultural Sector has the highest share in the GDP in India.
(C) The biggest source of Central Government’s revenue is Central Excise.
(D) None of the above.
Ans: C
3. Which of the following statements is true?
(A) The Competition Commission of India is headed by a person having Judicial background. (B) The definition of the term ‘goods’ as given in the Competition Act, 2002, is the same as given in the Sale of Goods Act, 1930.
(C) Both (A) and (B) are true.
(D) None of the above is true.
Ans: D
4. Which one of the following is not included in the Consumer Rights as per the Consumer Protection Act, 1986?
(A) Right to be protected against marketing of hazardous goods and services.
(B) Right to be heard.
(C) Right to a physical environment that will protect and enhance quality of life.
(D) Right to seek redressal of legitimate complaints.
Ans: C
5. A consumer can file a complaint under the Consumer Protection Act, 1986, on any of the following grounds except:
(A) Sale of defective goods
(B) Provision of deficient service
(C) Charging very high price
(D) Unfair trade practice
Ans: C
6. Financial statements provide a true and fair view if
(A) It is free from any material error and bias.
(B) It is prepared using the appropriate accounting policy and applicable accounting standards.
(C) It is prescribed in the format prescribed by the regulator or, in the absence of a prescribed format, it is prepared in a manner that facilitates analyses of the financial position and the performance of the reporting enterprise.
(D) It conforms to all of the above (A), (B) and (C).
Ans: D
7. Which of the formula is used to calculate Absolute Liquid Ratio is?
(A) Current Assets, Loans & Advances-Inventories /Current Liabilities & Provisions-Bank Overdraft
(B) Current Assets, Loans & Advances /Current Liabilities & Provisions
(C) Absolute Liquid Assets /Current Liabilities
(D) Absolute Liquid Assets /Quick Liabilities
Ans: C
8. A company sells its product at Rs. 15 per unit. In a period if it produces and sells 8,000 units, it incurs a loss of Rs. 5 per unit. If the volume is raised to 20,000 units it earns a profit of Rs. 4.
Variable cost per unit will be
(A) Rs. 9 per unit
(B) Rs. 4.5 per unit
(C) Rs. 5 per unit
(D) Rs. 6 per unit
Ans: C
9. Which of the following is a sub variance of labour efficiency variance?
(A) Idle time variance
(B) Labour-mix variance
(C) Labour-yield variance
(D) All of the above
Ans: D
10. An investment centre is a responsibility centre where the manager has control over
(A) Costs
(B) Costs and profits
(C) Costs, profits and product quality
(D) Costs, profits and assets
Ans: C
11. According to H.A. Simon, if a firm fails to achieve its target initially, it results in
(A) Search behaviour
(B) Sense of helplessness
(C) Appropriate revision of aspiration level.
(D) Sacking of its managerial team
Ans: A
12. When the demand curve is relatively highly elastic, the marginal revenue is
(A) Zero
(B) Unity
(C) Positive
(D) Negative
Ans: C
13. In which one of the following market situations the practice of price rigidity is found?
(A) Perfectly competitive market
(B) Monopolistic competitive market
(C) Oligopoly market
(D) Discriminating monopoly market
Ans: C
14. During short-run, the optimum level of output corresponds to that level of output where
(A) MC is the minimum
(B) AVC is the minimum
(C) AC is the minimum
(D) AFC stops declining
Ans: C
15. The opportunity cost is a term which describes
(A) A bargain price for a factor of production.
(B) Production cost related at the optimum level of production.
(C) Average variable cost.
(D) The loss of the reward in the next best use of that resource.
Ans: D
16. The collapse of which of the following systems is related to the Triffin Paradox?
(A) Gold Standard
(B) Exchange rate mechanism (in 1992)
(C) Bretton Woods
(D) None of the above
Ans: C
17. A time series is a set of data collected at
(A) Random intervals
(B) Regular intervals
(C) Convenient intervals
(D) All of the above
Ans: B
18. Given the following data calculate the regression coefficient of X on Y. Pearson’s correlation coefficient = + 0.8. Regression coefficient of Y on X = 0.8
Choose the correct answer from the following:
(A) 0.32
(B) 0.64
(C) 0.80
(D) 0.82
Ans: C
19. Which kind of test from the following options is the right test to use when the hypotheses for testing are stated as:
H0: Population mean is equal to the sample mean.
H1: Population mean is not equal to the sample mean.
(A) One-tailed test
(B) Two-tailed test
(C) Either one tailed or two tailed test
(D) None of the above
Ans: B
20. The steps in data processing are given below:
Choose the correct sequence of steps in data processing from the following options:
(i) Data Storage
(ii) Data Validation
(iii) Data Capture
(iv) Report Generation
(v) Data Manipulation
(A) (i), (ii), (iii), (iv), (v)
(B) (ii), (i), (iii), (iv), (v)
(C) (iii), (i), (ii), (iv), (v)
(D) (iii), (ii), (i), (v), (iv)
Ans: D
21. Which of the following steps are essential in the staffing process?
1. Hiring the right kind of people.
2. Firing the non-performing employees.
3. Developing skills of the employees through training.
4. Collective bargaining.
5. Maintaining the employees by creating favourable conditions of work.
Codes:
(A) 1, 3 and 5
(B) 1, 2 and 3
(C) 3, 4 and 5
(D) 2, 3 and 4
Ans: A
22. F.W Taylor
1. Viewed man as an adjunct of man.
2. Completely neglected the psychological aspects.
3. Emphasized only a limited number of the psychological variables.
4. Under-estimated the meaning of human motivation.
Select the correct answer from the following:
(A) 1, 2 and 3
(B) 3, 2 and 4
(C) 1, 2, 3 and 4
(D) 1 and 4
Ans: C
23. The authoritarian leadership style goes with
(A) Theory X
(B) Theory Y
(C) Theory Z
(D) None of these
Ans: A
24. Select the four stages of group development from the following:
1. Forming
2. Storming
3. Discussing
4. Norming
5. Warning
6. Performing
Codes:
(A) 1, 2, 3 and 5
(B) 2, 3, 4 and 6
(C) 3, 4, 5 and 6
(D) 1, 2, 4 and 6
Ans: D
25. Match the following:
List – I List – II
(a) To check the quality of work. 1. Speed boss
(b) To see that work is completed in time. 2. Inspection
(c) To check absenteeism of workers. 3. Instruction clerk
(d) To issue instruction regarding method of work 4. Shop discipline
Codes:
(a) (b) (c) (d)
(A) 3 2 1 4
(B) 2 1 4 3
(C) 2 1 3 4
(D) 4 3 1 2
Ans: B
26. A company plans to create the largest possible total sales volume. It should use
(A) Concentrated marketing
(B) Differentiated marketing
(C) Homogeneous marketing
(D) Undifferentiated marketing
Ans: B
27. The third stage in the consumer buying decision process is
(A) Evaluation of alternatives
(B) Information search
(C) Purchase decision
(D) None of the above
Ans: A
28. Manufacturers of convenience goods typically seek ______ distribution.
(A) Exclusive
(B) Intensive
(C) Restrictive
(D) Selective
Ans: B
29. Which promotional tool is most cost effective when a product is in the decline stage of its product life cycle?
(A) Advertising
(B) Personal selling
(C) Public relations
(D) Sales promotion
Ans: D
30. Match the items of List-I with those of List-II.
List – I List – II
(a) Product support service (i) Information Technology Act 2000
(b) Interviewers’ bias (ii) Information Search
(c) On-line advertising (iii) Marketing Research
(d) Personal sources (iv) User’s Manual Indicate the correct matching.
(a) (b) (c) (d)
(A) (iv) (iii) (ii) (i)
(B) (iv) (iii) (i) (ii)
(C) (i) (ii) (iii) (iv)
(D) (ii) (iii) (iv) (i)
Ans: B
31. Match the items of List-I with the items of List-II.
List – I List – II
(a) A theory of capital structure in which the weighted average cost of capital and the total value of the firm remains constant as financial leverage is changed. I. Capital Asset Pricing Model
(b) The value of the geared company will always be greater than an ungeared company with similar business risk but only by the amount of debt associated tax savings of the geared company. II. Traditional Approach
(c) Capital structure that minimizes the firm’s cost of capital and thereby maximizes the value of the firm III. Net Operating Income Approach
(d) Share price is independent of the degree of financial leverage. IV. Modigliani-Miller Theory and Corporate Taxation
Codes:
(I) (II) (III) (IV)
(A) (c) (d) (b) (a)
(B) (d) (c) (a) (b)
(C) (a) (b) (c) (d)
(D) (b) (a) (d) (c)
Ans: B
32. Which one of the following expression represents a correct matching?
(A) A decrease in the proportional claim on earnings and assets of a share of common stock due to the issuance of additional shares: Dilution.
(B) Anticipated annual dividend divided by the total book value of the firm: Dividend Yield.
(C) When a shareholder receives lesser number of new shares in exchange for a given number of old shares: Stock split.
(D) The costs associated with issuing securities, such as underwriting, legal, listing and printing fees: Transaction Costs.
Ans: A
33. When the internal rate of return of a project is more than the hurdle rate, the Net Present Value would be:
(A) Zero
(B) Positive
(C) Negative
(D) Uncertain
Ans: B
34. Statement I: The presence of fixed operating costs in the operating cost structure of a firm regardless of the volume denotes the presence of financial leverage.
Statement II: Super leverage is the result of the multiplicative combination of the degree of operating leverage and financial leverage.
Codes:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, but Statement II is false.
(D) Statement I is false, but Statement II is true.
Ans: D
35. Which one of the following expressions has incorrect matching?
(A) A method of financing where each asset would be offset with a financing instrument of the same approximate maturity: Hedging Approach.
(B) A method of financing where all long term funds are used to finance the current assets: Aggressive Approach.
(C) The amount of current assets required to meet a firm’s long term minimum needs: Permanent working capital.
(D) Trade credit and other payables that arise in the firm’s day to day operations: Spontaneous Financing.
Ans: B
36. The Equal Remuneration Act, 1976 is primarily applicable to workers working on
(A) Monthly wage basis
(B) Annual wage basis
(C) Daily wage basis
(D) Contractual wage basis
Ans: B
37. In comparing Maslow’s and Hertzberg’s Theories of Motivation, which motivators of Hertzberg are similar to the need specified by Maslow?
(A) Affiliation needs
(B) Physiological needs
(C) Security needs
(D) Self-actualisation needs
Ans: D
38. The managerial function of staffing is most closely related to
(A) Controlling
(B) Leading
(C) Marketing
(D) Organising
Ans: D
39. The ‘staffing function’ does not include:
(A) Performance appraisal
(B) Placement
(C) Selection
(D) Span of control
Ans: D
40. On-the-job training does not include
(A) Job rotation
(B) Planned progression
(C) Sensitivity training
(D) Temporary promotion
Ans: C
41. Generally the following are the important items appearing on the assets side of the Balance Sheet of a Commercial Bank.
(a) Cash in hand
(b) Bills discounted
(c) Money at call and short notice
(d) Loans and advances
(e) Investments
Which of the following sequence is correct in the order of liquidity?
(A) (a), (b), (d), (c) and (e)
(B) (a), (c), (b), (e) and (d)
(C) (b), (d), (c), (a) and (e)
(D) (c), (d), (b), (e) and (a)
Ans: B
42. Which one of the following is not a correct method of calculating profitability ratio in banking sector?
(A) Burden ratio = Man power expenses ratio + other establishment expenditure ratio – non interest income ratio.
(B) Profitability ratio = Spread ratio – burden ratio
(C) Spread ratio = Interest earned ratio + Interest paid ratio
(D) Interest earned ratio = Interest earned/volume of business
Ans: C
43. Capital adequacy norm is expressed as a percentage of
(A) Standard Assets
(B) Risk adjusted Assets
(C) Sub-standard Assets
(D) Investments
Ans: B
44. The major sources of funds for IFCI Ltd. (during the year 2011-12) are given below:
(i) Reserves and Surpluses
(ii) Borrowings in Rupees
(iii) Share Capital
(iv) Borrowings in Foreign Currency
Which of the following sequence is correct?
(A) (i), (iii), (iv) and (ii)
(B) (iii), (i), (ii) and (iv)
(C) (ii), (i), (iii) and (iv)
(D) (iv), (ii), (i) and (iii)
Ans: C
45. The Bonds and Debentures issued by State Financial Corporations are guaranteed by
(A) Reserve Bank of India
(B) IDBI
(C) Central Government
(D) State Government
Ans: D
46. Items given are related to international trade theories. Match the items in List-A with most suitable options in List-B.
List – A List – B
(a) ‘Zero-sum’ game (i) Factor proportion theory
(b) Labour-Capital relationship (ii) Mercantilism theory
(c) Relative efficiencies of the producing countries (iii) Theory of ‘Absolute advantage’
(d) ‘Positive-sum’ game (iv) Theory of Comparative advantage
Codes:
(a) (b) (c) (d)
(A) (iii) (iv) (i) (ii)
(B) (ii) (iii) (iv) (i)
(C) (ii) (i) (iv) (iii)
(D) (iv) (i) (ii) (iii)
Ans: C
47. The following are the stages in international business entry process. Arrange them in correct sequence.
(i) Direct experience
(ii) In-depth scrutiny
(iii) Country identification
(iv) Preliminary screening
(v) Final selection
Codes:
(A) (iv), (iii), (i), (ii), (v)
(B) (iii), (iv), (i), (ii), (v)
(C) (iii), (iv), (ii), (v), (i)
(D) (iii), (iv), (v), (ii), (i)
Ans: C
48. Which of the following intellectual properties were covered under Uruguay Round Agreement on TRIPS?
(i) Copy rights
(ii) Trade marks
(iii) Industrial designs
(iv) Undisclosed information, including trade secrets
Codes:
(A) (i) and (ii) only
(B) (i), (ii) and (iii)
(C) (ii), (iii) and (iv)
(D) (i), (ii), (iii) and (iv)
Ans: D
49. Which of the following statements is true?
(A) If the absolute Purchasing Power Parity (PPP) holds good, then the relative PPP also holds good.
(B) If the relative PPP holds good, then the absolute PPP also holds good.
(C) If the absolute PPP does not hold good, then the relative PPP also will not hold good.
(D) If the absolute PPP holds good, then the relative PPP may or may not hold good.
Ans: A
50. Which of the following is/are the assumptions of the Law of One Price?
(i) Restriction on the movement of goods between countries.
(ii) No transportation costs.
(iii) No tariffs
(A) Both (i) and (ii)
(B) Only (i)
(C) Both (ii) and (iii)
(D) (i), (ii) and (iii)
Ans: C
51. Which one of the following is not an element of internal environment?
(A) Mission/Objectives
(B) Human Resources
(C) Customers
(D) Shareholders’ values
Ans: C
52. The presence of fixed costs in the total cost structure of a firm results into
(A) Financial leverage
(B) Operating leverage
(C) Super leverage
(D) None of the above
Ans: B
53. “The cost of capital declines when the degree of financial leverage increases.” Who advocated it?
(A) Net operating income approach
(B) Net income approach
(C) Modigliani-Miller approach
(D) Traditional approach
Ans: B
54. A view that the dividend policy of a firm has a bearing on share valuation advocated by James E. Walter is based on which one of the following assumptions?
(A) Retained earnings is only source of financing.
(B) Cost of capital does not remain constant.
(C) Return on investment fluctuates.
(D) All the above.
Ans: A
55. Match the following:
List – I List – II
a. Matching approach 1. Dividend Policy
b. Structural ratios 2. Inventory Management
c. Ordering quantity 3. Financing Working Capital
d. Bonus shares 4. Capital Structure
Codes:
a b c d
(A) 1 2 3 4
(B) 3 4 1 2
(C) 3 4 2 1
(D) 2 1 3 4
Ans: C
56. Assertion (A): Operating style of the international business can be spread to the entire globe.
Reason (R): The style is limited to the internal economy only.
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
57. The Comparative Cost Advantage Theory was given by
(A) David Ricardo
(B) Adam Smith
(C) Raymond Vernon
(D) Michael E. Porter
Ans: A
58. The companies globalise their operations through different means:
(A) Exporting directly
(B) Licensing/Franchising
(C) Joint ventures
(D) All the above
Ans: D
59. The components of W.T.O. are
(A) Ministerial Conference
(B) Disputes Settlement Body
(C) Director General
(D) All the above
Ans: D
60. India is not associated with
(A) SAARC
(B) NAFTA
(C) BRICS
(D) None of the above
Ans: B
61. Which one of the following is true statement?
(A) A balance of trade deals with export and import of invisible items only.
(B) A balance of payment deals with both visible and invisible items.
(C) The current account is not a component of balance of payment.
(D) All the above.
Ans: B
62. SDRs are popularly known as
(A) Currency Notes
(B) Paper Gold
(C) Silver Coin
(D) Gold Coin
Ans: B
63. Which one is not international institution?
(A) IMF
(B) IDA
(C) IBRD
(D) TRAI
Ans: D
64. Howard-Sueth model of consumer behaviour is popularly known as
(A) Machine Model
(B) Human Model
(C) Marketing Model
(D) Purchase Model
Ans: A
65. To generate and facilitate any exchange intended to satisfy human needs or wants such that the satisfaction of these wants occur with minimal detrimental impact on the natural environment is known as
(A) Aggressive marketing
(B) Operating marketing
(C) Green marketing
(D) All of the above
Ans: C
66. All the activities involved in selling goods or services directly to final consumers for personal non-business uses are done by
(A) Wholesalers
(B) Retailers
(C) Mediators
(D) Commission Agents
Ans: B
67. To manage a business well is to manage its future and to manage the future is to manage information is termed as
(A) Management information system
(B) Marketing information system
(C) Future information system
(D) General information system
Ans: A
68. DAGMAR approach in marketing is used to measure
(A) Public relations
(B) Advertising results
(C) Selling volume
(D) Consumer satisfaction
Ans: D
69. Which one is not an important objective of Financial Management?
(A) Profit Maximisation
(B) Wealth Maximisation
(C) Value Maximisation
(D) Maximisation of social benefits
Ans: D
70. Which one refers to cash inflow under payback period method?
(A) Cash flow before depreciation and taxes
(B) Cash flow after depreciation and taxes
(C) Cash flow after depreciation but before taxes
(D) Cash flow before depreciation and after taxes
Ans: B
71. The concept of present value is based on the :
(A) Principle of compounding
(B) Principle of discounting
(C) (A) and (B)
(D) None of the above
Ans: B
72. Cost of capital from all the sources of funds is called
(A) Specific cost
(B) Composite cost
(C) Implicit cost
(D) Simple Average cost
Ans: A
73. Match the following with most suitable option:
(a) Modigiliani- Miller Approach (i) Commercial papers
(b) Net Operating Income Approach (ii) Working Capital Management
(c) Short term Money Market Instrument (iii) Capital Structure
(d) Factoring (iv) Arbitrage
Codes :
(a) (b) (c) (d)
(A) (iv) (iii) (i) (ii)
(B) (iii) (iv) (i) (ii)
(C) (iii) (ii) (i) (iv)
(D) (iii) (ii) (iv) (i)
Ans: B
74. Which four are the factors influencing the Human Resource Management of an organisation?
(i) Size of workforce
(ii) Employee Expectations
(iii) Composition of workforce
(iv) Political influence
(v) Changes in technology
(A) (i), (ii), (iii) and (iv)
(B) (i),(ii), (iii) and (v)
(C) (i), (ii), (iv) and (v)
(D) (i), (iii), (iv) and (v)
Ans: C
75. Assertion (A): One can not be sure about the quality of appraisal on the basis of length of service.
Reasoning (R): Initial appraisal and promotional appraisal are done separately and differently since the length of service is different.
(A) (R) is correct but (A) is not correct.
(B) (A) is correct but (R) is not correct.
(C) (A) and (R) both are correct.
(D) (A) and (R) both are not correct.
Ans: D
76. Which of the following are covered under the scope of Human Resource Management?
(i) Forecasting Human Resource Needs
(ii) Replacement Planning
(iii) Human Resource Dynamics
(iv) Human Resource Development Planning
(v) Human Resource Audit
(A) (i), (iii), (v)
(B) (i), (ii), (iii), (iv)
(C) (iii), (v)
(D) (i), (ii), (iii), (iv), (v)
Ans: D
77. On which of the following, at the initial stage, the Indian IT companies relying more for getting good IT professionals?
(A) Job Portals
(B) Placement Agencies
(C) Campus Placement
(D) All of the above
Ans: C
78. Statement (i): Labour always get a major share of productivity gains.
Statement (ii): Partial stoppage of work by workers amounts to strike.
(A) Statement (i) is true but (ii) is false.
(B) Statement (ii) is true but (i) is false.
(C) Both statements are true.
(D) Both statements are false.
Ans: B
79. Imperial Bank was established on January 27, 1921 on the advise of
(A) J. M. Keynes
(B) Lord Illingworth
(C) King George V
(D) Winston Churchill
Ans: A
80. Read the following events:
(i) Allowing convertibility of rupee at the market rate in the current account
(ii) Nationalisation of general insurance business
(iii) Establishment of IDBI
(iv) Nationalisation of life insurance business
(v) Capital adequacy norms for commercial banks
Arrange the events in the ascending order of their occurrence:
(A) (iv), (iii), (ii), (i), (v)
(B) (v), (iv), (iii), (ii), (i)
(C) (i), (ii), (iii), (v), (iv)
(D) (i), (v), (ii), (iv), (iii)
Ans: A
81. In India, the Commercial Banks are given license of operation by
(A) The Government of India
(B) The Ministry of Finance
(C) Reserve Bank of India
(D) Banking Companies Regulation Act, 1949
Ans: C
82. The provisions of General Reserve in Banking Companies are made keeping in view the provisions of
(A) Indian Companies Act, 1956
(B) Banking Companies Act, 1949
(C) SEBI Act, 1992
(D) Statutory Auditor
Ans: B
83. Which among the following is not true with regard to merchant banker?
(i) It can accept deposits.
(ii) It can advance loans.
(iii) It can do other banking activities.
(iv) It can be manager to a public issue.
(A) (i), (ii) and (iii)
(B) (ii), (iii) and (iv)
(C) (i), (iii) and (iv)
(D) (ii) and (iv)
Ans: A
84. Balance of Payments can be made favourable if
(A) Exports are increased
(B) Imports are increased
(C) Devaluation of money
(D) (A) and (C)
Ans: D
85. Which one is not an objective of IMF?
(A) To promote international monetary co-operation
(B) To ensure balanced international trade
(C) To finance productive efforts according to peace-time requirement
(D) To ensure exchange rate stability
Ans: C
86. EPCG denotes
(A) Export Potential and Credit Guarantee
(B) Earning Promotion and Credit Guarantee
(C) Export Promotion and Credit Guarantee
(D) Export Potential and Credit Goods
Ans: C
87. Which one of the following matches correspond to the Member and Observer countries of the SAARC?
(i) India, Pakistan, Bangladesh, Bhutan, Nepal, Sri Lanka, Afghanistan, Maldive
(ii) Iran, China, Japan, USA, South Korea, European Union
(iii) Pakistan, Nepal, India, Bangladesh, Iran
(iv) UK, USA, North Korea, South Africa
(A) (iii) and (iv)
(B) (ii) and (iv)
(C) (i) and (ii)
(D) (ii) and (iii)
Ans: C
88. Which one is not an international organisation?
(A) SAARC
(B) ASEM
(C) ASEAN
(D) CBDT
Ans: D
89. Which of the following is not the major component of holistic marketing?
(A) Relationship marketing
(B) Integrated marketing
(C) Customer satisfaction
(D) Socially-responsible marketing
Ans: C
90. Which of the legislations listed below do not form part of the marketing environment of India?
(A) The Drugs and Cosmetics Act, 1940
(B) The Prevention of Food and Adulteration Act, 1954
(C) The Monopolies and Restrictive Trade Practices Act, 1969
(D) Both (B) and (C)
Ans: D
91. The set of all actual and potential buyers of a product is known as
(A) Customer group
(B) Industry
(C) Market
(D) None of the above
Ans: C
92. In the model of consumer behaviour given by Philip Kotler, what constitutes the marketing stimuli?
(A) Marketing environment
(B) Four P’s of marketing
(C) Consumer needs and wants
(D) None of the above
Ans: B
93. The factor that exerts the broadest and deepest influence on consumer behaviour is
(A) Culture
(B) Sub-culture
(C) Social class
(D) Income
Ans: A
94. Which one of the following is not among the assumptions of the Modigliani-Miller model?
(A) Perfect capital market
(B) Equivalent risk classes
(C) Unity for dividend payout ratio
(D) Absence of taxes
Ans: C
95. The most suitable coverage ratio for deciding the debt capacity of a firm is
(A) Interest Coverage Ratio
(B) Cash Flow Coverage Ratio
(C) Debt Service Coverage Ratio
(D) Fixed Assets Coverage Ratio
Ans: B
96. Which one of the following is the most popular method for estimating the cost of equity?
(A) Capital asset pricing model
(B) Dividend yield method
(C) Gordon’s dividend discount model
(D) Earnings yield method
Ans: A
97. Which one of the following is not the internal factor affecting the weighted average cost of capital of a firm?
(A) Investment policy of the firm
(B) Capital structure of the firm
(C) Dividend policy followed
(D) Market risk premium for the firm
Ans: D
98. Most common approach for analysing the capital structure of a firm is
(A) Ratio Analysis
(B) Cash Flow Analysis
(C) Comparative Analysis
(D) Leverage Analysis
Ans: C
99. Who propounded “Theory Z”?
(A) William Ouchi
(B) Peter F. Drucker
(C) Joseph H. Jurau
(D) Douglas McGregor
Ans: A
100. Another name for MATRIX organisation is
(A) Flexible organisation
(B) Geographic organisation
(C) Project organisation
(D) None of the above
Ans: C
(A) Mission/Objectives
(B) Human Resources
(C) Customers
(D) Shareholders’ values
Ans: C
52. The presence of fixed costs in the total cost structure of a firm results into
(A) Financial leverage
(B) Operating leverage
(C) Super leverage
(D) None of the above
Ans: B
53. “The cost of capital declines when the degree of financial leverage increases.” Who advocated it?
(A) Net operating income approach
(B) Net income approach
(C) Modigliani-Miller approach
(D) Traditional approach
Ans: B
54. A view that the dividend policy of a firm has a bearing on share valuation advocated by James E. Walter is based on which one of the following assumptions?
(A) Retained earnings is only source of financing.
(B) Cost of capital does not remain constant.
(C) Return on investment fluctuates.
(D) All the above.
Ans: A
55. Match the following:
List – I List – II
a. Matching approach 1. Dividend Policy
b. Structural ratios 2. Inventory Management
c. Ordering quantity 3. Financing Working Capital
d. Bonus shares 4. Capital Structure
Codes:
a b c d
(A) 1 2 3 4
(B) 3 4 1 2
(C) 3 4 2 1
(D) 2 1 3 4
Ans: C
56. Assertion (A): Operating style of the international business can be spread to the entire globe.
Reason (R): The style is limited to the internal economy only.
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
57. The Comparative Cost Advantage Theory was given by
(A) David Ricardo
(B) Adam Smith
(C) Raymond Vernon
(D) Michael E. Porter
Ans: A
58. The companies globalise their operations through different means:
(A) Exporting directly
(B) Licensing/Franchising
(C) Joint ventures
(D) All the above
Ans: D
59. The components of W.T.O. are
(A) Ministerial Conference
(B) Disputes Settlement Body
(C) Director General
(D) All the above
Ans: D
60. India is not associated with
(A) SAARC
(B) NAFTA
(C) BRICS
(D) None of the above
Ans: B
61. Which one of the following is true statement?
(A) A balance of trade deals with export and import of invisible items only.
(B) A balance of payment deals with both visible and invisible items.
(C) The current account is not a component of balance of payment.
(D) All the above.
Ans: B
62. SDRs are popularly known as
(A) Currency Notes
(B) Paper Gold
(C) Silver Coin
(D) Gold Coin
Ans: B
63. Which one is not international institution?
(A) IMF
(B) IDA
(C) IBRD
(D) TRAI
Ans: D
64. Howard-Sueth model of consumer behaviour is popularly known as
(A) Machine Model
(B) Human Model
(C) Marketing Model
(D) Purchase Model
Ans: A
65. To generate and facilitate any exchange intended to satisfy human needs or wants such that the satisfaction of these wants occur with minimal detrimental impact on the natural environment is known as
(A) Aggressive marketing
(B) Operating marketing
(C) Green marketing
(D) All of the above
Ans: C
66. All the activities involved in selling goods or services directly to final consumers for personal non-business uses are done by
(A) Wholesalers
(B) Retailers
(C) Mediators
(D) Commission Agents
Ans: B
67. To manage a business well is to manage its future and to manage the future is to manage information is termed as
(A) Management information system
(B) Marketing information system
(C) Future information system
(D) General information system
Ans: A
68. DAGMAR approach in marketing is used to measure
(A) Public relations
(B) Advertising results
(C) Selling volume
(D) Consumer satisfaction
Ans: D
69. Which one is not an important objective of Financial Management?
(A) Profit Maximisation
(B) Wealth Maximisation
(C) Value Maximisation
(D) Maximisation of social benefits
Ans: D
70. Which one refers to cash inflow under payback period method?
(A) Cash flow before depreciation and taxes
(B) Cash flow after depreciation and taxes
(C) Cash flow after depreciation but before taxes
(D) Cash flow before depreciation and after taxes
Ans: B
71. The concept of present value is based on the :
(A) Principle of compounding
(B) Principle of discounting
(C) (A) and (B)
(D) None of the above
Ans: B
72. Cost of capital from all the sources of funds is called
(A) Specific cost
(B) Composite cost
(C) Implicit cost
(D) Simple Average cost
Ans: A
73. Match the following with most suitable option:
(a) Modigiliani- Miller Approach (i) Commercial papers
(b) Net Operating Income Approach (ii) Working Capital Management
(c) Short term Money Market Instrument (iii) Capital Structure
(d) Factoring (iv) Arbitrage
Codes :
(a) (b) (c) (d)
(A) (iv) (iii) (i) (ii)
(B) (iii) (iv) (i) (ii)
(C) (iii) (ii) (i) (iv)
(D) (iii) (ii) (iv) (i)
Ans: B
74. Which four are the factors influencing the Human Resource Management of an organisation?
(i) Size of workforce
(ii) Employee Expectations
(iii) Composition of workforce
(iv) Political influence
(v) Changes in technology
(A) (i), (ii), (iii) and (iv)
(B) (i),(ii), (iii) and (v)
(C) (i), (ii), (iv) and (v)
(D) (i), (iii), (iv) and (v)
Ans: C
75. Assertion (A): One can not be sure about the quality of appraisal on the basis of length of service.
Reasoning (R): Initial appraisal and promotional appraisal are done separately and differently since the length of service is different.
(A) (R) is correct but (A) is not correct.
(B) (A) is correct but (R) is not correct.
(C) (A) and (R) both are correct.
(D) (A) and (R) both are not correct.
Ans: D
76. Which of the following are covered under the scope of Human Resource Management?
(i) Forecasting Human Resource Needs
(ii) Replacement Planning
(iii) Human Resource Dynamics
(iv) Human Resource Development Planning
(v) Human Resource Audit
(A) (i), (iii), (v)
(B) (i), (ii), (iii), (iv)
(C) (iii), (v)
(D) (i), (ii), (iii), (iv), (v)
Ans: D
77. On which of the following, at the initial stage, the Indian IT companies relying more for getting good IT professionals?
(A) Job Portals
(B) Placement Agencies
(C) Campus Placement
(D) All of the above
Ans: C
78. Statement (i): Labour always get a major share of productivity gains.
Statement (ii): Partial stoppage of work by workers amounts to strike.
(A) Statement (i) is true but (ii) is false.
(B) Statement (ii) is true but (i) is false.
(C) Both statements are true.
(D) Both statements are false.
Ans: B
79. Imperial Bank was established on January 27, 1921 on the advise of
(A) J. M. Keynes
(B) Lord Illingworth
(C) King George V
(D) Winston Churchill
Ans: A
80. Read the following events:
(i) Allowing convertibility of rupee at the market rate in the current account
(ii) Nationalisation of general insurance business
(iii) Establishment of IDBI
(iv) Nationalisation of life insurance business
(v) Capital adequacy norms for commercial banks
Arrange the events in the ascending order of their occurrence:
(A) (iv), (iii), (ii), (i), (v)
(B) (v), (iv), (iii), (ii), (i)
(C) (i), (ii), (iii), (v), (iv)
(D) (i), (v), (ii), (iv), (iii)
Ans: A
81. In India, the Commercial Banks are given license of operation by
(A) The Government of India
(B) The Ministry of Finance
(C) Reserve Bank of India
(D) Banking Companies Regulation Act, 1949
Ans: C
82. The provisions of General Reserve in Banking Companies are made keeping in view the provisions of
(A) Indian Companies Act, 1956
(B) Banking Companies Act, 1949
(C) SEBI Act, 1992
(D) Statutory Auditor
Ans: B
83. Which among the following is not true with regard to merchant banker?
(i) It can accept deposits.
(ii) It can advance loans.
(iii) It can do other banking activities.
(iv) It can be manager to a public issue.
(A) (i), (ii) and (iii)
(B) (ii), (iii) and (iv)
(C) (i), (iii) and (iv)
(D) (ii) and (iv)
Ans: A
84. Balance of Payments can be made favourable if
(A) Exports are increased
(B) Imports are increased
(C) Devaluation of money
(D) (A) and (C)
Ans: D
85. Which one is not an objective of IMF?
(A) To promote international monetary co-operation
(B) To ensure balanced international trade
(C) To finance productive efforts according to peace-time requirement
(D) To ensure exchange rate stability
Ans: C
86. EPCG denotes
(A) Export Potential and Credit Guarantee
(B) Earning Promotion and Credit Guarantee
(C) Export Promotion and Credit Guarantee
(D) Export Potential and Credit Goods
Ans: C
87. Which one of the following matches correspond to the Member and Observer countries of the SAARC?
(i) India, Pakistan, Bangladesh, Bhutan, Nepal, Sri Lanka, Afghanistan, Maldive
(ii) Iran, China, Japan, USA, South Korea, European Union
(iii) Pakistan, Nepal, India, Bangladesh, Iran
(iv) UK, USA, North Korea, South Africa
(A) (iii) and (iv)
(B) (ii) and (iv)
(C) (i) and (ii)
(D) (ii) and (iii)
Ans: C
88. Which one is not an international organisation?
(A) SAARC
(B) ASEM
(C) ASEAN
(D) CBDT
Ans: D
89. Which of the following is not the major component of holistic marketing?
(A) Relationship marketing
(B) Integrated marketing
(C) Customer satisfaction
(D) Socially-responsible marketing
Ans: C
90. Which of the legislations listed below do not form part of the marketing environment of India?
(A) The Drugs and Cosmetics Act, 1940
(B) The Prevention of Food and Adulteration Act, 1954
(C) The Monopolies and Restrictive Trade Practices Act, 1969
(D) Both (B) and (C)
Ans: D
91. The set of all actual and potential buyers of a product is known as
(A) Customer group
(B) Industry
(C) Market
(D) None of the above
Ans: C
92. In the model of consumer behaviour given by Philip Kotler, what constitutes the marketing stimuli?
(A) Marketing environment
(B) Four P’s of marketing
(C) Consumer needs and wants
(D) None of the above
Ans: B
93. The factor that exerts the broadest and deepest influence on consumer behaviour is
(A) Culture
(B) Sub-culture
(C) Social class
(D) Income
Ans: A
94. Which one of the following is not among the assumptions of the Modigliani-Miller model?
(A) Perfect capital market
(B) Equivalent risk classes
(C) Unity for dividend payout ratio
(D) Absence of taxes
Ans: C
95. The most suitable coverage ratio for deciding the debt capacity of a firm is
(A) Interest Coverage Ratio
(B) Cash Flow Coverage Ratio
(C) Debt Service Coverage Ratio
(D) Fixed Assets Coverage Ratio
Ans: B
96. Which one of the following is the most popular method for estimating the cost of equity?
(A) Capital asset pricing model
(B) Dividend yield method
(C) Gordon’s dividend discount model
(D) Earnings yield method
Ans: A
97. Which one of the following is not the internal factor affecting the weighted average cost of capital of a firm?
(A) Investment policy of the firm
(B) Capital structure of the firm
(C) Dividend policy followed
(D) Market risk premium for the firm
Ans: D
98. Most common approach for analysing the capital structure of a firm is
(A) Ratio Analysis
(B) Cash Flow Analysis
(C) Comparative Analysis
(D) Leverage Analysis
Ans: C
99. Who propounded “Theory Z”?
(A) William Ouchi
(B) Peter F. Drucker
(C) Joseph H. Jurau
(D) Douglas McGregor
Ans: A
100. Another name for MATRIX organisation is
(A) Flexible organisation
(B) Geographic organisation
(C) Project organisation
(D) None of the above
Ans: C