COOPERATION-PAGE 4
COOPERATION-PAGE 4 MCQs
1:-A co-operative society is (are)
A:-An enterprise
B:-Norms of social justice
C:-An association of persons
D:-All of these
Ans: D
2:-The President of ICA elected from
A:-General Assembly
B:-Executive committee
C:-General council
D:-Board of Directors
Ans: A
3:-Birth place of co-operation
A:-England
B:-Germany
C:-Italy
D:-USA
Ans: A
4:-Chairman of CRAFICARD
A:-A. D. Gorwallah
B:-V. L. Mehta
C:-B. Shivaraman
D:-Saraiyya
Ans: C
5:-"Need for adequately trained staff for growth of the movement" - is one of the observation of a five year plan regards co-operation. Which is the plan ?
A:-First
B:-Second
C:-Third
D:-Fourth
Ans: A
6:-Which committee recommended compulsory adjustment of debts and setting up of agricultural credit ?
A:-Saraiyya Committee
B:-Gadghil Committee
C:-Sreekrishna Committee
D:-Mehta Committee
Ans: B
7:-Brahma Prakash Model is also known as
A:-Multistate Co-operative Society Act
B:-Andhra Pradesh Mutually aided Co-operative Society Act
C:-Kerala Co-operative Vision
D:-Model Co-operative Societies Act
Ans: D
8:-The Pravara co-operative ____________ factory is the first successful factory in the concerned co-operatives, which established in 1950-51.
A:-Spinning
B:-Sugar
C:-Fisheries
D:-Rubber
Ans: B
9:-Normal period/tenure of an adhoc committee is limited to
A:-12 months
B:-9 months
C:-6 months
D:-3 months
Ans: D
10:-The checking of accounts with the supporting of documentary evidence is
A:-Verification
B:-Noting
C:-Valuation
D:-Vouching
Ans: D
11:-A Co-operative Bank is also known as
A:-Credit society
B:-Funding agency
C:-Financial agency
D:-Service society
Ans: A
12:-SCARDB stands for
A:-State Co-operative Agricultural and Rural Development Bank
B:-State Co-operative Agricultural and Reconstruction Development Bank
C:-Service Co-operative Agricultural and Reconstruction Development Bank
D:-None of these
Ans: A
A:-An enterprise
B:-Norms of social justice
C:-An association of persons
D:-All of these
Ans: D
2:-The President of ICA elected from
A:-General Assembly
B:-Executive committee
C:-General council
D:-Board of Directors
Ans: A
3:-Birth place of co-operation
A:-England
B:-Germany
C:-Italy
D:-USA
Ans: A
4:-Chairman of CRAFICARD
A:-A. D. Gorwallah
B:-V. L. Mehta
C:-B. Shivaraman
D:-Saraiyya
Ans: C
5:-"Need for adequately trained staff for growth of the movement" - is one of the observation of a five year plan regards co-operation. Which is the plan ?
A:-First
B:-Second
C:-Third
D:-Fourth
Ans: A
6:-Which committee recommended compulsory adjustment of debts and setting up of agricultural credit ?
A:-Saraiyya Committee
B:-Gadghil Committee
C:-Sreekrishna Committee
D:-Mehta Committee
Ans: B
7:-Brahma Prakash Model is also known as
A:-Multistate Co-operative Society Act
B:-Andhra Pradesh Mutually aided Co-operative Society Act
C:-Kerala Co-operative Vision
D:-Model Co-operative Societies Act
Ans: D
8:-The Pravara co-operative ____________ factory is the first successful factory in the concerned co-operatives, which established in 1950-51.
A:-Spinning
B:-Sugar
C:-Fisheries
D:-Rubber
Ans: B
9:-Normal period/tenure of an adhoc committee is limited to
A:-12 months
B:-9 months
C:-6 months
D:-3 months
Ans: D
10:-The checking of accounts with the supporting of documentary evidence is
A:-Verification
B:-Noting
C:-Valuation
D:-Vouching
Ans: D
11:-A Co-operative Bank is also known as
A:-Credit society
B:-Funding agency
C:-Financial agency
D:-Service society
Ans: A
12:-SCARDB stands for
A:-State Co-operative Agricultural and Rural Development Bank
B:-State Co-operative Agricultural and Reconstruction Development Bank
C:-Service Co-operative Agricultural and Reconstruction Development Bank
D:-None of these
Ans: A
13:-Retailing comes under which of the following online marketing domains ?
A:-C2C
B:-B2B
C:-B2C
D:-G2B
Ans: C
14:-A firm that wants to hold its share in an industry without rocking the boat is called
A:-Market follower
B:-Market leader
C:-Market nicher
D:-Market challenger
Ans: A
15:-Which among the following central tendency is not influenced by the size of the extreme items ?
A:-Mean
B:-Mode
C:-Quartile 2
D:-Median
Ans: D
16:-The population of a country was 300 million in 1981. It became 520 million in 1999. What is the percentage compound growth per annum ?
A:-6.3%
B:-3.1%
C:-4.9%
D:-11.2%
Ans: B
17:-Basing-point pricing is an example of ______ type of pricing.
A:-Dynamic Pricing
B:-Geographic Pricing
C:-Promotional Pricing
D:-Psychological Pricing
Ans: B
18:-Name the personality trait shown by people to gain control the behaviour of others.
A:-Extraversion
B:-Machiavellianism
C:-Empathy
D:-Risk Propensity
Ans: B
19:-Which of the following theory emphasizes situations create suitable leadership style required by a manager ?
A:-Path goal theory
B:-Continuum theory
C:-Contingency theory
D:-Great man theory
Ans: C
20:-Breach of contract before the performance is due is known as
A:-Anticipatory breach
B:-Actual breach
C:-Lapse of contract
D:-Novation of contract
Ans: A
A:-C2C
B:-B2B
C:-B2C
D:-G2B
Ans: C
14:-A firm that wants to hold its share in an industry without rocking the boat is called
A:-Market follower
B:-Market leader
C:-Market nicher
D:-Market challenger
Ans: A
15:-Which among the following central tendency is not influenced by the size of the extreme items ?
A:-Mean
B:-Mode
C:-Quartile 2
D:-Median
Ans: D
16:-The population of a country was 300 million in 1981. It became 520 million in 1999. What is the percentage compound growth per annum ?
A:-6.3%
B:-3.1%
C:-4.9%
D:-11.2%
Ans: B
17:-Basing-point pricing is an example of ______ type of pricing.
A:-Dynamic Pricing
B:-Geographic Pricing
C:-Promotional Pricing
D:-Psychological Pricing
Ans: B
18:-Name the personality trait shown by people to gain control the behaviour of others.
A:-Extraversion
B:-Machiavellianism
C:-Empathy
D:-Risk Propensity
Ans: B
19:-Which of the following theory emphasizes situations create suitable leadership style required by a manager ?
A:-Path goal theory
B:-Continuum theory
C:-Contingency theory
D:-Great man theory
Ans: C
20:-Breach of contract before the performance is due is known as
A:-Anticipatory breach
B:-Actual breach
C:-Lapse of contract
D:-Novation of contract
Ans: A
21:-Mr. R sold goods of the list price of Rs. 10,000 to Mr. S at a trade discount of 10% and cash discount of 5% if payment is made immediately. What should be the net amount payable by Mr. S if he makes immediate payment to avail the discount ?
A:-8,550
B:-8,500
C:-8,450
D:-9,500
Ans: A
22:-Understatement of closing work in progress
A:-Understate cost of goods sold
B:-Overstate current assets
C:-Overstate gross profit
D:-Understate net income
Ans: D
23:-Writing off the expired cost of an intangible asset is known as
A:-Depreciation
B:-Depletion
C:-Amortisation
D:-Capitalisation
Ans: C
24:-Which of the following is not a part of double entry system ?
A:-Joint venture account
B:-Joint bank account
C:-Co venture account
D:-Memorandum joint venture account
Ans: D
25:-Returns of cash sales will be recorded in
A:-Sales book
B:-Sales return book
C:-Cash book
D:-Journal
Ans: C
26:-A temporary room constructed for Rs. 30,000 for storing raw material for the construction of a big building is
A:-Capital expenditure
B:-Revenue expenditure
C:-Deferred revenue expenditure
D:-Miscellaneous expenditure
Ans: A
27:-Part of furniture which stood in the books at Rs. 1,000 was sold for Rs. 550 in exchange of a new furniture costing Rs. 1,750 and net invoice of Rs. 1,200 was passed through the purchases book. Rectification will result in
A:-Increase in profit by Rs. 750
B:-Decrease in profit by Rs. 750
C:-Decrease in profit by Rs. 450
D:-Increase in profit by Rs. 1,200
Ans: A
28:-In the absence of any agreement partners are entitled to receive interest on loans and advances provided by them at the rate of
A:-12% p.a.
B:-10% p.a.
C:-8% p.a.
D:-6% p.a.
Ans: D
29:-K,L,M are partners sharing profits and losses in the ratio of 2:1:1. Firm has a joint life policy of s. 1,20,000 and appears in the Balance Sheet at surrender value of Rs. 20,000. On the death of K, his share of joint life policy account will be
A:-Rs. 10,000
B:-Rs. 50,000
C:-Rs. 60,000
D:-Rs. 1,20,000
Ans: B
30:-The amount in the security premium account cannot be used for the purpose of
A:-Issue of fully paid bonus shares
B:-Writing off preliminary expenses
C:-Writing off commission or discount on issue
D:-Writing off losses of company
Ans: D
31:-When shares are forfeited, share capital account is debited with ________ and the share forfeiture account is credited with
A:-Paid up amount, called up amount
B:-Face value, calls in arrear
C:-Called up amount, amount received
D:-Amount received, calls in arrears
Ans: C
32:-K Ltd. forfeited 150 shares of Rs. 10, issued at a premium of Rs. 2 for nonpayment of the final call of Rs. 3 out of these 100 shares were reissued at Rs. 11 per share. How much would be transferred to capital reserve ?
A:-Rs. 700
B:-Rs. 450
C:-Rs. 1,050
D:-Rs. 800
Ans: A
33:-A decrease in provision for bad and doubtful debts would result in
A:-Increase in liability
B:-Increase in net profit
C:-Decrease in net profit
D:-Decrease in liability
Ans: B
34:-When a firm is dissolved, profit or loss on realization will be shared by the partners
A:-In profit sharing ratio
B:-In capital ratio
C:-Equally
D:-As per rule in Garner vs. Murray case
Ans: A
35:-Z paid Rs. 40,000 as premium for goodwill at the time of admission on the condition that partnership will be for 10 years. But after 3 years the firm has dissolved due to misconduct of Y, another partner. Will Z entitled to refund any amount paid by him towards goodwill
A:-Yes, Rs. 40,000
B:-Yes, Rs. 28,000
C:-Yes, Rs. 12,000
D:-Won't get anything
Ans: B
36:-'Maximum loss method' is a term associated with
A:-Marine loss
B:-Depreciation
C:-Inventory management
D:-Piecemeal distribution of cash
Ans: D
37:-___________ is the option for stabilization of the post listing price of securities in a public issue by allotting
excess shares
A:-Book building
B:-Preferential issue
C:-Green shoe option
D:-Right issue
Ans: C
38:-Breakup value of shares can be obtained by which of the following method ?
A:-Net asset backing method
B:-Yield method
C:-Capitalization method
D:-Net payment method
Ans: A
39:-Common size statement are also known as
A:-Horizontal analysis
B:-Vertical analysis
C:-Diagonal analysis
D:-Parallel analysis
Ans: B
40:-'Liquid ratio' is also known as
A:-Quick ratio
B:-Current ratio
C:-Cash ratio
D:-Liquidity ratio
Ans: A
41: If for a firm, current ratio equal to 1.25 and quick ratio equal to 1.10 and has Rs. 15,000 in inventories, what is the firm's working capital
A:-15,000
B:-25,000
C:-1,10,000
D:-1,25,000
Ans: B
42:-DU PONT analysis relates to
A:-Capital budgeting
B:-Capital structure
C:-Cost of capital
D:-Profit analysis
Ans: D
43:-Usually capital budget decisions are based on incremental
A:-Profit
B:-Revenue
C:-Cash flow
D:-Cost
Ans: C
44:-If for a project benefit cost ratio is equal to one, then
A:-IRR will be greater than one
B:-IRR will be greater than discount rate
C:-IRR will be equal to discount rate
D:-IRR will be less than discount rate
Ans: C
45:-As per Pecking Order Theory which of the following get first priority ?
A:-Retained earnings
B:-Equity
C:-Debt
D:-Borrowings
Ans: A
A:-8,550
B:-8,500
C:-8,450
D:-9,500
Ans: A
22:-Understatement of closing work in progress
A:-Understate cost of goods sold
B:-Overstate current assets
C:-Overstate gross profit
D:-Understate net income
Ans: D
23:-Writing off the expired cost of an intangible asset is known as
A:-Depreciation
B:-Depletion
C:-Amortisation
D:-Capitalisation
Ans: C
24:-Which of the following is not a part of double entry system ?
A:-Joint venture account
B:-Joint bank account
C:-Co venture account
D:-Memorandum joint venture account
Ans: D
25:-Returns of cash sales will be recorded in
A:-Sales book
B:-Sales return book
C:-Cash book
D:-Journal
Ans: C
26:-A temporary room constructed for Rs. 30,000 for storing raw material for the construction of a big building is
A:-Capital expenditure
B:-Revenue expenditure
C:-Deferred revenue expenditure
D:-Miscellaneous expenditure
Ans: A
27:-Part of furniture which stood in the books at Rs. 1,000 was sold for Rs. 550 in exchange of a new furniture costing Rs. 1,750 and net invoice of Rs. 1,200 was passed through the purchases book. Rectification will result in
A:-Increase in profit by Rs. 750
B:-Decrease in profit by Rs. 750
C:-Decrease in profit by Rs. 450
D:-Increase in profit by Rs. 1,200
Ans: A
28:-In the absence of any agreement partners are entitled to receive interest on loans and advances provided by them at the rate of
A:-12% p.a.
B:-10% p.a.
C:-8% p.a.
D:-6% p.a.
Ans: D
29:-K,L,M are partners sharing profits and losses in the ratio of 2:1:1. Firm has a joint life policy of s. 1,20,000 and appears in the Balance Sheet at surrender value of Rs. 20,000. On the death of K, his share of joint life policy account will be
A:-Rs. 10,000
B:-Rs. 50,000
C:-Rs. 60,000
D:-Rs. 1,20,000
Ans: B
30:-The amount in the security premium account cannot be used for the purpose of
A:-Issue of fully paid bonus shares
B:-Writing off preliminary expenses
C:-Writing off commission or discount on issue
D:-Writing off losses of company
Ans: D
31:-When shares are forfeited, share capital account is debited with ________ and the share forfeiture account is credited with
A:-Paid up amount, called up amount
B:-Face value, calls in arrear
C:-Called up amount, amount received
D:-Amount received, calls in arrears
Ans: C
32:-K Ltd. forfeited 150 shares of Rs. 10, issued at a premium of Rs. 2 for nonpayment of the final call of Rs. 3 out of these 100 shares were reissued at Rs. 11 per share. How much would be transferred to capital reserve ?
A:-Rs. 700
B:-Rs. 450
C:-Rs. 1,050
D:-Rs. 800
Ans: A
33:-A decrease in provision for bad and doubtful debts would result in
A:-Increase in liability
B:-Increase in net profit
C:-Decrease in net profit
D:-Decrease in liability
Ans: B
34:-When a firm is dissolved, profit or loss on realization will be shared by the partners
A:-In profit sharing ratio
B:-In capital ratio
C:-Equally
D:-As per rule in Garner vs. Murray case
Ans: A
35:-Z paid Rs. 40,000 as premium for goodwill at the time of admission on the condition that partnership will be for 10 years. But after 3 years the firm has dissolved due to misconduct of Y, another partner. Will Z entitled to refund any amount paid by him towards goodwill
A:-Yes, Rs. 40,000
B:-Yes, Rs. 28,000
C:-Yes, Rs. 12,000
D:-Won't get anything
Ans: B
36:-'Maximum loss method' is a term associated with
A:-Marine loss
B:-Depreciation
C:-Inventory management
D:-Piecemeal distribution of cash
Ans: D
37:-___________ is the option for stabilization of the post listing price of securities in a public issue by allotting
excess shares
A:-Book building
B:-Preferential issue
C:-Green shoe option
D:-Right issue
Ans: C
38:-Breakup value of shares can be obtained by which of the following method ?
A:-Net asset backing method
B:-Yield method
C:-Capitalization method
D:-Net payment method
Ans: A
39:-Common size statement are also known as
A:-Horizontal analysis
B:-Vertical analysis
C:-Diagonal analysis
D:-Parallel analysis
Ans: B
40:-'Liquid ratio' is also known as
A:-Quick ratio
B:-Current ratio
C:-Cash ratio
D:-Liquidity ratio
Ans: A
41: If for a firm, current ratio equal to 1.25 and quick ratio equal to 1.10 and has Rs. 15,000 in inventories, what is the firm's working capital
A:-15,000
B:-25,000
C:-1,10,000
D:-1,25,000
Ans: B
42:-DU PONT analysis relates to
A:-Capital budgeting
B:-Capital structure
C:-Cost of capital
D:-Profit analysis
Ans: D
43:-Usually capital budget decisions are based on incremental
A:-Profit
B:-Revenue
C:-Cash flow
D:-Cost
Ans: C
44:-If for a project benefit cost ratio is equal to one, then
A:-IRR will be greater than one
B:-IRR will be greater than discount rate
C:-IRR will be equal to discount rate
D:-IRR will be less than discount rate
Ans: C
45:-As per Pecking Order Theory which of the following get first priority ?
A:-Retained earnings
B:-Equity
C:-Debt
D:-Borrowings
Ans: A
46:-'Lintner model' is related with
A:-Credit policy
B:-Optimum cash balance
C:-Working capital management
D:-Dividend policy
Ans: D
47:-In working capital management the concept of Zero Working Capital (ZWC) =
A:-Inventories + receivables − payables
B:-Current assets − cash − current liabilities
C:-Working capital − cash equivalents
D:-Receivables − payables
Ans: A
48:-The term 'lethargy' in cash management refers
A:-Time taken by post office for transferring cheque from customer to firm
B:-Time taken to processing the cheque within the firm and sending to bank
C:-Time taken by the bank in collecting the payment from customers bank
D:-Difference between the balance in cash book and pass book
Ans: B
49:-Which of the following would increase the working capital ?
A:-Issue of Bonus shares
B:-Issue of Right shares
C:-Conversion of debt into capital
D:-Acquisition of asset by issuing capital
Ans: B
50:-Management of X Ltd. raises the unit selling price of a product by 10% as a result of increase of variable cost of
the product by 10%. The fixed cost remains unchanged. The BEP of the company
A:-Increases
B:-Decreases
C:-Remain the same
D:-Can't say
Ans: C
51:-A company has earned net profit of Rs. 2,00,000. Its P/V ratio and margin of safety are 25% and 50% respectively. What is the total fixed cost of the company ?
A:-Rs. 1,00,000
B:-Rs. 2,00,000
C:-Rs. 4,00,000
D:-Rs. 8,00,000
Ans: B
52:-For a given period profit under absorption costing is less than the profit under marginal costing if
A:-Production exceeds sales
B:-Production is equal to sales
C:-Sales are in excess of production
D:-Sales is the key factor
Ans: C
53:-In make or buy decisions, it is profitable to buy from outside only when the suppliers price is below the firm's own
A:-Variable cost
B:-Contribution
C:-Fixed cost
D:-Total cost
Ans: A
54:-A firm is having interest liability of Rs. 20,000 and preference dividend of Rs. 36,000. Given the tax rate of 40% and dividend tax rate of 20%, financial break even level will be
A:-Rs. 56,000
B:-Rs. 63,200
C:-Rs. 70,400
D:-Rs. 92,000
Ans: D
55:-According to Walter Model, when the return on investment is more than the cost of equity capital, in order to maximize the value of firm
A:-100% dividend pay out
B:-50% dividend pay out
C:-Not to pay dividend
D:-Pay any dividend
Ans: C
56:-Unlevering of beta means
A:-Calculation of equity beta
B:-Calculation of debt beta
C:-Calculation of modified beta
D:-Calculation of firms beta````
Ans: D
57:-Trading on equity is a situation where
A:-ROI is more than cost of debt
B:-ROI is less than cost of debt
C:-ROI is equal to cost of debt
D:-ROI is not related to cost of debt
Ans: A
58:-In Certainty Equivalents approach in order to incorporate the risk, adjustment made on
A:-Profit
B:-Discount rate
C:-Cash flow
D:-Probability
Ans: C
59:-A company is expected to pay a dividend of Rs. 10 per share next year. The dividends are expected to grow perpetually at a rate of 10%. What is the value of its share if the required rate of return is 15% ?
A:-67
B:-150
C:-100
D:-200
Ans: D
60:-Deposit multiplier for a bank with`` 'p' as initial deposit and 'r' as the cash reserve ratio is
A:-p × r
B:-p/r
C:-p/(1 + r)
D:-p/(1 − r)
Ans: B
61:-A banking company cannot hold any immovable property not acquired for its own use for a period exceeding
A:-12 years
B:-10 years
C:-7 years
D:-5 years
Ans: C
62:-Which of the following is a liability of a bank ?
A:-Money at call
B:-Treasury bills
C:-Commercial paper
D:-Certificate of deposit
Ans: D
63:-The rules framed in the Claytons case relates to Banker's
A:-Right of appropriation
B:-Right of general lien
C:-Right of set off
D:-Right to charge incidental charges
Ans: A
64:-The Reserve Bank of India was established on
A:-1 January 1935
B:-1 April 1935
C:-1 April 1937
D:-1 January 1949
Ans: B
65:-RBI may _________ in order to discourage investment in the country.
A:-Reduce CRR
B:-Buy securities from market
C:-Decrease Bank rate
D:-Increase Bank rate
Ans: D
66:-The Banking Ombudsman is appointed by
A:-Reserve Bank of India
B:-Central Government
C:-Supreme Court
D:-State Bank of India
Ans: A
67:-NABARD was established on the recommendations of
A:-Hazari Committee
B:-Nariman Committee
C:-Krishnasami Committee
D:-Sivaraman Committee
Ans: D
68:-District Co-operative Banks are also known as
A:-Apex Banks
B:-Central Co-operative Bank
C:-State Co-operative Bank
D:-Primary Agricultural Society
Ans: B
69:-Average clause will apply if there is
A:-Double insurance
B:-Under insurance
C:-Re insurance
D:-Consequential loss
Ans: B
70:-In case of fire insurance, insurable interest must exist
A:-When policy is taken
B:-When loss is incurred
C:-Both at the time of policy is taken and when loss is incurred
D:-Either at the time of policy is taken or when loss is incurred
Ans: C
71:-Irreversible movements in a business continuous in the same direction for a considerable period of time is known as
A:-Cyclical variations
B:-Seasonal variations
C:-Secular variations
D:-Random variations
Ans: C
72:-Interest on borrowed capital funds is an example of _________ type costs in a business.
A:-Implicit costs
B:-Explicit costs
C:-Opportunity costs
D:-Average costs
Ans: B
73:-Which among the following method do not consider time value of an investment ?
A:-Payback period
B:-NPV
C:-IRR
D:-Present value method
Ans: A
74:-Which of the following strategy assumes that 'People are rational — if one presents enough facts to people, they will change' ?
A:-Fellowship strategy
B:-Political strategy
C:-Economic strategy
D:-Academic strategy
Ans: D
75:-Who among the following works as a process facilitator rather than a solution provider ?
A:-Consultant
B:-Trainer
C:-Researcher
D:-Manager
Ans: A
76:-Identify the type of organization which more copes with unstable environment ?
A:-Project organization
B:-Committee organization
C:-Line and staff organization
D:-Functional organization
Ans: A
77:-Existence of large number of customers and suppliers is the feature of ______ system.
A:-Monopsony
B:-Oligopoly
C:-Oligoposony
D:-Perfect competition
Ans: D
78:-Time estimations for completion of activities can fairly be done with high degree of accuracy in ________ system.
A:-PERT
B:-CPM
C:-Liner Programming
D:-Transport Problems
Ans: B
79:-Estimate the EOQ when the annual demand is 3200 units, unit cost is Rs. 6, cost of one procurement is Rs. 150 and inventory cost is 25% p.a.
A:-600 units
B:-900 units
C:-1200 units
D:-800 units
Ans: C
80:-When the decision maker has no information about the probability of occurrence of variance, the criterion used is known as
A:-Maximum decision criterion
B:-Harwicz criterion
C:-Laplace criterion
D:-Minimax decision criterion
Ans: C
81:-Which of the following principle provides better coordination among various functions of an organization ?
A:-Unity of direction
B:-Centralisation
C:-Scalar chain
D:-None of the above
Ans: A
82:-Which among the following managerial function offset uncertainty and change ?
A:-Organising
B:-Planning
C:-Staffing
D:-Controlling
Ans: B
83:-The fundamental unique purpose of an organization is known as its
A:-Vision
B:-Objective
C:-Strategy
D:-Mission
Ans: D
84:-The mathematical technique used in optimum allocation of resource is known as
A:-Queuing Theory
B:-Transportation Technique
C:-Decision Theories
D:-Linear Programming
Ans: D
85:-The summary of the personal characteristics required for the job is known as
A:-Job specification
B:-Job analysis
C:-Job description
D:-Man inventory
Ans: A
86:-Thematic Appreciation Test is an example of _______ type test.
A:-Aptitude test
B:-Intelligence test
C:-Personality test
D:-Achievement test
Ans: C
87:-Which among the following is an example of on the job training ?
A:-Role palying
B:-Vestibule training
C:-Conferences
D:-Management games
Ans: B
88:-Who propounded the two factor X and Y motivation-hygienic theory ?
A:-Herzberg
B:-Keith Davis
C:-Douglas Mc Gregor
D:-A. H. Maslow
Ans: C
89:-The concept of paying more attention to the specific products and services than their benefits derived is known as
A:-Product concept
B:-Marketing myopia
C:-Markteting concept
D:-Selling concept
Ans: B
90:-Name the strategy of acquiring business outside the company's current products and markets.
A:-Diversification
B:-Product development
C:-Penetration strategy
D:-Value chain strategy
Ans: A
91:-Which among the following elements of marketing mix offer customer solution ?
A:-Salesmanship and Promotion
B:-Price
C:-Place
D:-Product
Ans: D
A:-Credit policy
B:-Optimum cash balance
C:-Working capital management
D:-Dividend policy
Ans: D
47:-In working capital management the concept of Zero Working Capital (ZWC) =
A:-Inventories + receivables − payables
B:-Current assets − cash − current liabilities
C:-Working capital − cash equivalents
D:-Receivables − payables
Ans: A
48:-The term 'lethargy' in cash management refers
A:-Time taken by post office for transferring cheque from customer to firm
B:-Time taken to processing the cheque within the firm and sending to bank
C:-Time taken by the bank in collecting the payment from customers bank
D:-Difference between the balance in cash book and pass book
Ans: B
49:-Which of the following would increase the working capital ?
A:-Issue of Bonus shares
B:-Issue of Right shares
C:-Conversion of debt into capital
D:-Acquisition of asset by issuing capital
Ans: B
50:-Management of X Ltd. raises the unit selling price of a product by 10% as a result of increase of variable cost of
the product by 10%. The fixed cost remains unchanged. The BEP of the company
A:-Increases
B:-Decreases
C:-Remain the same
D:-Can't say
Ans: C
51:-A company has earned net profit of Rs. 2,00,000. Its P/V ratio and margin of safety are 25% and 50% respectively. What is the total fixed cost of the company ?
A:-Rs. 1,00,000
B:-Rs. 2,00,000
C:-Rs. 4,00,000
D:-Rs. 8,00,000
Ans: B
52:-For a given period profit under absorption costing is less than the profit under marginal costing if
A:-Production exceeds sales
B:-Production is equal to sales
C:-Sales are in excess of production
D:-Sales is the key factor
Ans: C
53:-In make or buy decisions, it is profitable to buy from outside only when the suppliers price is below the firm's own
A:-Variable cost
B:-Contribution
C:-Fixed cost
D:-Total cost
Ans: A
54:-A firm is having interest liability of Rs. 20,000 and preference dividend of Rs. 36,000. Given the tax rate of 40% and dividend tax rate of 20%, financial break even level will be
A:-Rs. 56,000
B:-Rs. 63,200
C:-Rs. 70,400
D:-Rs. 92,000
Ans: D
55:-According to Walter Model, when the return on investment is more than the cost of equity capital, in order to maximize the value of firm
A:-100% dividend pay out
B:-50% dividend pay out
C:-Not to pay dividend
D:-Pay any dividend
Ans: C
56:-Unlevering of beta means
A:-Calculation of equity beta
B:-Calculation of debt beta
C:-Calculation of modified beta
D:-Calculation of firms beta````
Ans: D
57:-Trading on equity is a situation where
A:-ROI is more than cost of debt
B:-ROI is less than cost of debt
C:-ROI is equal to cost of debt
D:-ROI is not related to cost of debt
Ans: A
58:-In Certainty Equivalents approach in order to incorporate the risk, adjustment made on
A:-Profit
B:-Discount rate
C:-Cash flow
D:-Probability
Ans: C
59:-A company is expected to pay a dividend of Rs. 10 per share next year. The dividends are expected to grow perpetually at a rate of 10%. What is the value of its share if the required rate of return is 15% ?
A:-67
B:-150
C:-100
D:-200
Ans: D
60:-Deposit multiplier for a bank with`` 'p' as initial deposit and 'r' as the cash reserve ratio is
A:-p × r
B:-p/r
C:-p/(1 + r)
D:-p/(1 − r)
Ans: B
61:-A banking company cannot hold any immovable property not acquired for its own use for a period exceeding
A:-12 years
B:-10 years
C:-7 years
D:-5 years
Ans: C
62:-Which of the following is a liability of a bank ?
A:-Money at call
B:-Treasury bills
C:-Commercial paper
D:-Certificate of deposit
Ans: D
63:-The rules framed in the Claytons case relates to Banker's
A:-Right of appropriation
B:-Right of general lien
C:-Right of set off
D:-Right to charge incidental charges
Ans: A
64:-The Reserve Bank of India was established on
A:-1 January 1935
B:-1 April 1935
C:-1 April 1937
D:-1 January 1949
Ans: B
65:-RBI may _________ in order to discourage investment in the country.
A:-Reduce CRR
B:-Buy securities from market
C:-Decrease Bank rate
D:-Increase Bank rate
Ans: D
66:-The Banking Ombudsman is appointed by
A:-Reserve Bank of India
B:-Central Government
C:-Supreme Court
D:-State Bank of India
Ans: A
67:-NABARD was established on the recommendations of
A:-Hazari Committee
B:-Nariman Committee
C:-Krishnasami Committee
D:-Sivaraman Committee
Ans: D
68:-District Co-operative Banks are also known as
A:-Apex Banks
B:-Central Co-operative Bank
C:-State Co-operative Bank
D:-Primary Agricultural Society
Ans: B
69:-Average clause will apply if there is
A:-Double insurance
B:-Under insurance
C:-Re insurance
D:-Consequential loss
Ans: B
70:-In case of fire insurance, insurable interest must exist
A:-When policy is taken
B:-When loss is incurred
C:-Both at the time of policy is taken and when loss is incurred
D:-Either at the time of policy is taken or when loss is incurred
Ans: C
71:-Irreversible movements in a business continuous in the same direction for a considerable period of time is known as
A:-Cyclical variations
B:-Seasonal variations
C:-Secular variations
D:-Random variations
Ans: C
72:-Interest on borrowed capital funds is an example of _________ type costs in a business.
A:-Implicit costs
B:-Explicit costs
C:-Opportunity costs
D:-Average costs
Ans: B
73:-Which among the following method do not consider time value of an investment ?
A:-Payback period
B:-NPV
C:-IRR
D:-Present value method
Ans: A
74:-Which of the following strategy assumes that 'People are rational — if one presents enough facts to people, they will change' ?
A:-Fellowship strategy
B:-Political strategy
C:-Economic strategy
D:-Academic strategy
Ans: D
75:-Who among the following works as a process facilitator rather than a solution provider ?
A:-Consultant
B:-Trainer
C:-Researcher
D:-Manager
Ans: A
76:-Identify the type of organization which more copes with unstable environment ?
A:-Project organization
B:-Committee organization
C:-Line and staff organization
D:-Functional organization
Ans: A
77:-Existence of large number of customers and suppliers is the feature of ______ system.
A:-Monopsony
B:-Oligopoly
C:-Oligoposony
D:-Perfect competition
Ans: D
78:-Time estimations for completion of activities can fairly be done with high degree of accuracy in ________ system.
A:-PERT
B:-CPM
C:-Liner Programming
D:-Transport Problems
Ans: B
79:-Estimate the EOQ when the annual demand is 3200 units, unit cost is Rs. 6, cost of one procurement is Rs. 150 and inventory cost is 25% p.a.
A:-600 units
B:-900 units
C:-1200 units
D:-800 units
Ans: C
80:-When the decision maker has no information about the probability of occurrence of variance, the criterion used is known as
A:-Maximum decision criterion
B:-Harwicz criterion
C:-Laplace criterion
D:-Minimax decision criterion
Ans: C
81:-Which of the following principle provides better coordination among various functions of an organization ?
A:-Unity of direction
B:-Centralisation
C:-Scalar chain
D:-None of the above
Ans: A
82:-Which among the following managerial function offset uncertainty and change ?
A:-Organising
B:-Planning
C:-Staffing
D:-Controlling
Ans: B
83:-The fundamental unique purpose of an organization is known as its
A:-Vision
B:-Objective
C:-Strategy
D:-Mission
Ans: D
84:-The mathematical technique used in optimum allocation of resource is known as
A:-Queuing Theory
B:-Transportation Technique
C:-Decision Theories
D:-Linear Programming
Ans: D
85:-The summary of the personal characteristics required for the job is known as
A:-Job specification
B:-Job analysis
C:-Job description
D:-Man inventory
Ans: A
86:-Thematic Appreciation Test is an example of _______ type test.
A:-Aptitude test
B:-Intelligence test
C:-Personality test
D:-Achievement test
Ans: C
87:-Which among the following is an example of on the job training ?
A:-Role palying
B:-Vestibule training
C:-Conferences
D:-Management games
Ans: B
88:-Who propounded the two factor X and Y motivation-hygienic theory ?
A:-Herzberg
B:-Keith Davis
C:-Douglas Mc Gregor
D:-A. H. Maslow
Ans: C
89:-The concept of paying more attention to the specific products and services than their benefits derived is known as
A:-Product concept
B:-Marketing myopia
C:-Markteting concept
D:-Selling concept
Ans: B
90:-Name the strategy of acquiring business outside the company's current products and markets.
A:-Diversification
B:-Product development
C:-Penetration strategy
D:-Value chain strategy
Ans: A
91:-Which among the following elements of marketing mix offer customer solution ?
A:-Salesmanship and Promotion
B:-Price
C:-Place
D:-Product
Ans: D
92. A situation when a firm gets a profit lower than the average profit of the industry is called :
(A) Undercapitalisation (B) Overcapitalisation (C) Optimum capital structure (D) Optimum capitalisation
Ans: B
93. The trial balance is prepared either by _____or by ______method.
(A) Balance, total (B) Profit, average (C) Total, profit (D) Average, balance method
Ans: A
94. A debit note is prepared by the _____ of goods when he returns some of the goods purchased.
(A) Debtor (B) Creditor (C) Seller (D) Purchaser
Ans: D
95. Trade discount is recorded :
(A) In the P&L A/c
(B) In the Balance Sheet
(C) Both in the P&L A/c and Balance sheet
(D) Nowhere
Ans: D
96. _____ is the expenditure of a revenue nature, the benefit of which lasts for more than one accounting year.
(A) Capital Expenditure (B) Revenue Expenditure
(C) Recurring Expenditure (D) Deferred Revenue Expenditure
Ans: D
97. That part of subscribed capital set apart to be called only at the time of liquidation of a company is called :
(A) Capital Reserve (B) Reserve capital
(C) Risk capital (D) Redundant capital
Ans: B
98. The type of depreciation by which the value of an asset is reduced due of change in technology or fashion is called
(A) Amortisation (B) Depletion
(C) Obsolescence (D) Fluctuation
Ans: C
99. ______ is the amount received by non-profit making organisations on the death of a person as per his will.
(A) Legacy (B) Honorarium
(C) Donation (D) Pre-emptive right
Ans: A
100. _____ is the amount of profit earned by a concern over and above the normal return expected on its investment.
(A) Average profit (B) Revenue profit
(C) Capital profit (D) Super profit
Ans: D
(A) Undercapitalisation (B) Overcapitalisation (C) Optimum capital structure (D) Optimum capitalisation
Ans: B
93. The trial balance is prepared either by _____or by ______method.
(A) Balance, total (B) Profit, average (C) Total, profit (D) Average, balance method
Ans: A
94. A debit note is prepared by the _____ of goods when he returns some of the goods purchased.
(A) Debtor (B) Creditor (C) Seller (D) Purchaser
Ans: D
95. Trade discount is recorded :
(A) In the P&L A/c
(B) In the Balance Sheet
(C) Both in the P&L A/c and Balance sheet
(D) Nowhere
Ans: D
96. _____ is the expenditure of a revenue nature, the benefit of which lasts for more than one accounting year.
(A) Capital Expenditure (B) Revenue Expenditure
(C) Recurring Expenditure (D) Deferred Revenue Expenditure
Ans: D
97. That part of subscribed capital set apart to be called only at the time of liquidation of a company is called :
(A) Capital Reserve (B) Reserve capital
(C) Risk capital (D) Redundant capital
Ans: B
98. The type of depreciation by which the value of an asset is reduced due of change in technology or fashion is called
(A) Amortisation (B) Depletion
(C) Obsolescence (D) Fluctuation
Ans: C
99. ______ is the amount received by non-profit making organisations on the death of a person as per his will.
(A) Legacy (B) Honorarium
(C) Donation (D) Pre-emptive right
Ans: A
100. _____ is the amount of profit earned by a concern over and above the normal return expected on its investment.
(A) Average profit (B) Revenue profit
(C) Capital profit (D) Super profit
Ans: D