MANAGEMENT- PAGE 2
MANAGEMENT MCQs
1. The Marshallian utility analysis is based on a less valid assumption of
(A) Cardinal measurement of utility
(B) Constant marginal utility of money
(C) Diminishing marginal utility of goods
(D) Additivity of the utility
Ans: B
2. An appropriate pricing strategy for a new product to be introduced in the market will be
(A) Average/Marginal cost-plus pricing
(B) Skimming/Penetrating pricing
(C) Product-line pricing
(D) Differential pricing
Ans: B
3. Economic capacity of a plant represents the firm’s capability for
(A) Maximum physical output
(B) Maximum marginal output
(C) Break-even level of output and sale
(D) Output that equates average and marginal costs
Ans: D
4. Multi-stage approach to product pricing in a firm involves considerations for setting the price as follows:
i. Selection of firm’s objective
ii. Composition of marketing-mix
iii. Selection of target market
iv. Selection of pricing policy and strategy
Indicate correct sequence:
(A) iv → ii → i → iii
(B) iii → i → ii → iv
(C) ii → iv → iii → i
(D) i → iii → ii → iv
Ans: B
5. Which one of the following practices is not sought to be regulated under the Consumer Protection Act, 1986?
(A) Sales of defective goods
(B) Supply of services having some deficiency
(C) Misleading advertisements
(D) Goods supplied free of charge
Ans: D
6. The leadership prototype
(A) is useful primarily for selection and training of employees
(B) Uses LPC (Least Preferred Co-worker) as an important component
(C) Depicts the image of a model leader
(D) Emphasizes leadership development
Ans: C
7. Which is not a perceptual process stage?
(A) Attention/selection
(B) Interpretation
(C) Follow-through
(D) Retrieval
Ans: A
8. Which statement is correct?
(A) Goals act as the set of constraints that an organisation must satisfy.
(B) Deterministic goals specify the end or direction towards which the organization applies its efforts, and they can be fairly determined.
(C) Goals may be categorised as deterministic and constraint goals.
(D) All of the above.
Ans: D
9. According to Fiedler’s Contingency Model of Leadership, which one of the following is not situational variable?
(A) Leader-Member relations
(B) Task structure
(C) Position power
(D) Maturity of followers
Ans: D
10. Which is not a centralized communication network system?
(A) Wheel Network
(B) Y-shaped Network
(C) Circle Network
(D) Chain Network
Ans: C
11. Why is ‘procedural justice’ important in the context of the management of misconduct?
(A) It reflects on the integrity of HR professionals.
(B) It ensures that individuals have a sense that they have been treated fairly.
(C) It reflects on the values and attitudes of top management.
(D) It protects the interest of daily wage earners.
Ans: B
12. To be effective a points-based rating system requires:
(A) Close management control
(B) Comprehensive, reliable and consistent information
(C) Objectivity in assessments
(D) 360° assessment
Ans: B
13. Too much of reliance on internal recruitment can result in
(A) Reduced job performance
(B) High labour turnover
(C) Internal conflict
(D) Poor group dynamics
Ans: A
14. The concept of stagnation in the context of HRM means:
(A) Lack of appropriate selection criteria.
(B) HR staff having very limited experience outside the HR functions.
(C) Over-reliance on the internal labour market to fill new positions.
(D) Lack of integration of recruitment and selection into the wider human resource function.
Ans: B
15. Negotiations are an important aspect of the collective-bargaining process. What do they ensure?
(A) That conflict is contained within manageable boundaries.
(B) That there is an agreement between all parties involved.
(C) That conflict is always resolved.
(D) It achieves a set of lasting agreements.
Ans: A
16. If the going rate of interest is above the coupon rate, the bond will sell:
(A) At a Premium
(B) At a Discount
(C) At Par
(D) None of the above
Ans: B
17. In case the sales or project’s investment deviates from expected ones, it needs
(A) Optimistic scenario analysis
(B) Sensitivity analysis
(C) Simulation analysis
(D) Financial break-even analysis
Ans: B
18. ‘Trading on equity’ refers to
(A) Optimum capital structure
(B) Appropriate capitalisation
(C) Capital gearing
(D) Watered capital
Ans: C
19. Match the items of two lists, giving the correct code:
List – I List – II
a. Dividend Capitalisation Model i. John Lintner
b. Dividend Relevance Model ii. James E. Walter
c. Dividend Irrelevance Model iii. Myron Gordon
d. Dividend Payout Model iv. Modigliani & Miller
Codes:
a b c d
(A) ii i iii iv
(B) i iv ii iii
(C) iii ii iv i
(D) iv iii i ii
Ans: C
20. The excess payment by the new company to the amalgamating companies for the appraised value of the assets and liabilities taken over is accounted as
(A) Capital Reserve
(B) Bonus Share Capital
(C) Goodwill
(D) Amount paid for the acquisition of the brand
Ans: C
21. Which of the following is direct marketing?
(A) Face to-face marketing
(B) Catalogue marketing
(C) Direct mailing
(D) Test marketing
Ans: A
22. In marketing research, primary data can be collected through
(A) Observational Method
(B) Survey Method
(C) Experimental Method
(D) All of the above
Ans: D
23. Holistic marketing does not include
(A) Internal Marketing
(B) Integrated Marketing
(C) Performance Marketing
(D) Financial Marketing
Ans: D
24. Which of the following is not a distinctive characteristic of services?
(A) Transparency
(B) Intangibility
(C) Inseparability
(D) Perishability
Ans: D
25. To remain dominant, a market leader looks for
(A) Ways to expand total market demand
(B) Attempting to protect its current share
(C) Increasing its market share
(D) all of the above
Ans: D
26. Consider the names of organisations/persons listed in List – I and their role/functions given in List – II:
List – I List – II
a. Bureau of Indian Standards (BIS) i. Measurement of Service quality
b. Zeithmal, Parasuraman and Berry ii. Measurement of quality of Educational service
c. ISO iii. Standardisation and quality control of manufactured goods
d. National Assessment and Accreditation Council iv. Quality marking and Certification of standards
Indicate the correct matching:
Codes:
a b c d
(A) i ii iii iv
(B) ii iii iv i
(C) iv ii iii i
(D) iii i iv ii
Ans: D
27. In Linear Programming, which one of the following cases is not a type of sensitivity analysis?
(A) Model building
(B) Objective-function ranging
(C) Pricing out
(D) Right hand-side ranging
Ans: A
28. The upper control limit for an X chart, with n = 9, = 26.7, R = 5.3 and d2 = 2.970, is
(A) 24.9
(B) 26.11
(C) 27.29
(D) 28.48
Ans: D
29. The additional cost of shortening an activity by one unit of time is
(A) Cost slope
(B) Crash cost
(C) Crash time
(D) Least cost
Ans: A
30. Which method is least suited for forecasting the demand of a new product?
(A) Survey of Buyers’ Intentions
(B) Composite Opinions of Sales Force
(C) Test Marketing
(D) Time-Series Analysis
Ans: D
31. In a hypothesis test, α = 0.05 and β = 0.10, the power of the test is
(A) 0.10
(B) 0.90
(C) 0.95
(D) 0.15
Ans: B
32. When performing a Chi-square hypothesis test, what happens when expected frequencies in several cells are too small?
(A) Value of χ2 will be overestimated.
(B) The null hypothesis will be more likely to be rejected than it should be.
(C) The degrees of freedom are greatly reduced.
(D) (A) and (B), but not (C).
Ans: D
33. Under which situation, the method of ‘experimentation, modeling and sensitivity analysis’ is used to determine the information requirements of the management?
(A) Total Uncertainty
(B) High Risk
(C) Low Risk
(D) Certainty
Ans: A
34. The technique(s) that can be used in data mining is/are:
(A) Non-linear Regression Methods
(B) Decision tree
(C) Neural networks
(D) All of the above
Ans: D
35. A Binomial distribution may be approximated by a Poisson distribution, if:
i. ‘n’ is large and ‘p’ is large.
ii. ‘n’ is small and ‘p’ is large.
iii. ‘n’ is small and ‘p’ is small.
iv. ‘n’ is large and ‘p’ is small.
Codes:
(A) i, ii and iii
(B) ii only
(C) iii and iv only
(D) iv only
Ans: D
36. Double taxation relief is normally provided by the country in which the parent company has its legal residence. It is provided in the following modes:
i. Credit system without deferral
ii. Credit system with deferral
iii. Deduction of tax paid abroad as expenditure
iv. Investment credit
v. Tax subsidy
Identify the correct combination.
Codes:
(A) i, ii, iii and iv
(B) i, ii, iv and v
(C) ii, iii, iv and v
(D) i, ii, iii and v
Ans: A
37. The strategies of a global firm are affected by the following factors:
i. Different countries have different labour mixes.
ii. The legal, economic, social and cultural environment varies from one country to another.
iii. Different countries have different time lines and geographical boundaries.
iv. Political relationship between the home country and the host country.
Indicate the correct combination.
Codes:
(A) i, ii and iii
(B) ii, iii and iv
(C) i, ii and iv
(D) i and ii only
Ans: C
38. Match the items of List – I and List – II:
List – I List – II
a. UNCTAD I i. India
b. UNCTAD II ii. Brazil
c. UNCTAD X iii. Thailand
d. UNCTAD XI iv. Switzerland
Indicate the correct matching.
Codes:
a b c d
(A) iv i iii ii
(B) iii i iv ii
(C) ii i iii iv
(D) iv i ii iii
Ans: A
39. In the context of International Business, whether an equal distribution of income in the host country:
(A) Has nothing to do with the MNCs market segmentation strategy.
(B) Matters greatly to the MNCs market segmentation strategy.
(C) Has little impact on the MNCs market segmentation strategy.
(D) Has a significant impact on the MNCs market segmentation strategy if the economy is at the take-off stage.
Ans: A
40. Statement-I: Cost of retained earnings is included in the cost of equity in the context of international business.
Statement-II: Interest rate swap and currency swap are used interchangeably in international business.
(A) Statement I is true, but Statement II is false.
(B) Statement I is false, but Statement II is true.
(C) Both the statements I and II are true.
(D) Both the Statements I and II are false.
Ans: D
41. Who said – “An entrepreneur always searches for change, responds to it and exploit it as an opportunity.”?
(A) James Burna
(B) McClelland
(C) Peter F. Drucker
(D) Robert C. Ronstadt
Ans: C
42. ‘Kakinada Experiment’ on achievement motivation was conducted in
(A) Uttar Pradesh
(B) Jammu & Kashmir
(C) Andhra Pradesh
(D) Gujarat
Ans: C
43. The entrepreneurial process consists of the following steps:
i. Management of the resulting enterprise.
ii. Determination of the required resources.
iii. Identification and evaluation of the opportunity.
iv. Development of the business plan.
Indicate the correct sequence.
Codes:
(A) iii iv i ii
(B) iv i iii ii
(C) iii iv ii i
(D) iv i ii iii
Ans: C
44. Match the items given in List – I and List – II:
List – I List – II
a. Market Research i. Sales promotion
b. Financial Plan ii. Form of business
c. Ownership iii. Budgeting
d. Marketing Plan iv. Exploring market opportunity
Codes:
a b c d
(A) i ii iii iv
(B) iv iii i ii
(C) iv iii ii i
(D) i ii iv iii
Ans: C
45. TePP stands for
(A) Technology for Promotion and Production
(B) Trade for Profitability and Productivity
(C) Technopreneur Promotion Programme
(D) None of the above
Ans: C
46. Indo-American Model of Corporate Governance sets top most priority to
(A) Business growth
(B) Customers
(C) Employees
(D) Shareholders
Ans: D
47. A good governance in corporate sector depends upon
(A) Strong political will
(B) Transparency and accountability
(C) Trade Union practices
(D) Social and political responses
Ans: B
48. Corporate leaders in India in private sector are tempted by a very high target of ________ and the concerned employees have to achieve the target for promotion and stability.
(A) Money making
(B) Business growth
(C) Product development
(D) Profit
Ans: D
49. Corporate business ethics is ________ norms and pattern that spring from organizational view of good and bad, right and wrong.
(A) Social
(B) Behavioural
(C) Institutional
(D) Individual
Ans: B
50. Trade Union strike supporting a political cause and affecting production activities is a problem related to
(A) Socio-economic phenomenon
(B) Ethical and technical phenomenon
(C) Ethical and economic phenomenon
(D) Socio-political phenomenon
Ans: C
(A) Cardinal measurement of utility
(B) Constant marginal utility of money
(C) Diminishing marginal utility of goods
(D) Additivity of the utility
Ans: B
2. An appropriate pricing strategy for a new product to be introduced in the market will be
(A) Average/Marginal cost-plus pricing
(B) Skimming/Penetrating pricing
(C) Product-line pricing
(D) Differential pricing
Ans: B
3. Economic capacity of a plant represents the firm’s capability for
(A) Maximum physical output
(B) Maximum marginal output
(C) Break-even level of output and sale
(D) Output that equates average and marginal costs
Ans: D
4. Multi-stage approach to product pricing in a firm involves considerations for setting the price as follows:
i. Selection of firm’s objective
ii. Composition of marketing-mix
iii. Selection of target market
iv. Selection of pricing policy and strategy
Indicate correct sequence:
(A) iv → ii → i → iii
(B) iii → i → ii → iv
(C) ii → iv → iii → i
(D) i → iii → ii → iv
Ans: B
5. Which one of the following practices is not sought to be regulated under the Consumer Protection Act, 1986?
(A) Sales of defective goods
(B) Supply of services having some deficiency
(C) Misleading advertisements
(D) Goods supplied free of charge
Ans: D
6. The leadership prototype
(A) is useful primarily for selection and training of employees
(B) Uses LPC (Least Preferred Co-worker) as an important component
(C) Depicts the image of a model leader
(D) Emphasizes leadership development
Ans: C
7. Which is not a perceptual process stage?
(A) Attention/selection
(B) Interpretation
(C) Follow-through
(D) Retrieval
Ans: A
8. Which statement is correct?
(A) Goals act as the set of constraints that an organisation must satisfy.
(B) Deterministic goals specify the end or direction towards which the organization applies its efforts, and they can be fairly determined.
(C) Goals may be categorised as deterministic and constraint goals.
(D) All of the above.
Ans: D
9. According to Fiedler’s Contingency Model of Leadership, which one of the following is not situational variable?
(A) Leader-Member relations
(B) Task structure
(C) Position power
(D) Maturity of followers
Ans: D
10. Which is not a centralized communication network system?
(A) Wheel Network
(B) Y-shaped Network
(C) Circle Network
(D) Chain Network
Ans: C
11. Why is ‘procedural justice’ important in the context of the management of misconduct?
(A) It reflects on the integrity of HR professionals.
(B) It ensures that individuals have a sense that they have been treated fairly.
(C) It reflects on the values and attitudes of top management.
(D) It protects the interest of daily wage earners.
Ans: B
12. To be effective a points-based rating system requires:
(A) Close management control
(B) Comprehensive, reliable and consistent information
(C) Objectivity in assessments
(D) 360° assessment
Ans: B
13. Too much of reliance on internal recruitment can result in
(A) Reduced job performance
(B) High labour turnover
(C) Internal conflict
(D) Poor group dynamics
Ans: A
14. The concept of stagnation in the context of HRM means:
(A) Lack of appropriate selection criteria.
(B) HR staff having very limited experience outside the HR functions.
(C) Over-reliance on the internal labour market to fill new positions.
(D) Lack of integration of recruitment and selection into the wider human resource function.
Ans: B
15. Negotiations are an important aspect of the collective-bargaining process. What do they ensure?
(A) That conflict is contained within manageable boundaries.
(B) That there is an agreement between all parties involved.
(C) That conflict is always resolved.
(D) It achieves a set of lasting agreements.
Ans: A
16. If the going rate of interest is above the coupon rate, the bond will sell:
(A) At a Premium
(B) At a Discount
(C) At Par
(D) None of the above
Ans: B
17. In case the sales or project’s investment deviates from expected ones, it needs
(A) Optimistic scenario analysis
(B) Sensitivity analysis
(C) Simulation analysis
(D) Financial break-even analysis
Ans: B
18. ‘Trading on equity’ refers to
(A) Optimum capital structure
(B) Appropriate capitalisation
(C) Capital gearing
(D) Watered capital
Ans: C
19. Match the items of two lists, giving the correct code:
List – I List – II
a. Dividend Capitalisation Model i. John Lintner
b. Dividend Relevance Model ii. James E. Walter
c. Dividend Irrelevance Model iii. Myron Gordon
d. Dividend Payout Model iv. Modigliani & Miller
Codes:
a b c d
(A) ii i iii iv
(B) i iv ii iii
(C) iii ii iv i
(D) iv iii i ii
Ans: C
20. The excess payment by the new company to the amalgamating companies for the appraised value of the assets and liabilities taken over is accounted as
(A) Capital Reserve
(B) Bonus Share Capital
(C) Goodwill
(D) Amount paid for the acquisition of the brand
Ans: C
21. Which of the following is direct marketing?
(A) Face to-face marketing
(B) Catalogue marketing
(C) Direct mailing
(D) Test marketing
Ans: A
22. In marketing research, primary data can be collected through
(A) Observational Method
(B) Survey Method
(C) Experimental Method
(D) All of the above
Ans: D
23. Holistic marketing does not include
(A) Internal Marketing
(B) Integrated Marketing
(C) Performance Marketing
(D) Financial Marketing
Ans: D
24. Which of the following is not a distinctive characteristic of services?
(A) Transparency
(B) Intangibility
(C) Inseparability
(D) Perishability
Ans: D
25. To remain dominant, a market leader looks for
(A) Ways to expand total market demand
(B) Attempting to protect its current share
(C) Increasing its market share
(D) all of the above
Ans: D
26. Consider the names of organisations/persons listed in List – I and their role/functions given in List – II:
List – I List – II
a. Bureau of Indian Standards (BIS) i. Measurement of Service quality
b. Zeithmal, Parasuraman and Berry ii. Measurement of quality of Educational service
c. ISO iii. Standardisation and quality control of manufactured goods
d. National Assessment and Accreditation Council iv. Quality marking and Certification of standards
Indicate the correct matching:
Codes:
a b c d
(A) i ii iii iv
(B) ii iii iv i
(C) iv ii iii i
(D) iii i iv ii
Ans: D
27. In Linear Programming, which one of the following cases is not a type of sensitivity analysis?
(A) Model building
(B) Objective-function ranging
(C) Pricing out
(D) Right hand-side ranging
Ans: A
28. The upper control limit for an X chart, with n = 9, = 26.7, R = 5.3 and d2 = 2.970, is
(A) 24.9
(B) 26.11
(C) 27.29
(D) 28.48
Ans: D
29. The additional cost of shortening an activity by one unit of time is
(A) Cost slope
(B) Crash cost
(C) Crash time
(D) Least cost
Ans: A
30. Which method is least suited for forecasting the demand of a new product?
(A) Survey of Buyers’ Intentions
(B) Composite Opinions of Sales Force
(C) Test Marketing
(D) Time-Series Analysis
Ans: D
31. In a hypothesis test, α = 0.05 and β = 0.10, the power of the test is
(A) 0.10
(B) 0.90
(C) 0.95
(D) 0.15
Ans: B
32. When performing a Chi-square hypothesis test, what happens when expected frequencies in several cells are too small?
(A) Value of χ2 will be overestimated.
(B) The null hypothesis will be more likely to be rejected than it should be.
(C) The degrees of freedom are greatly reduced.
(D) (A) and (B), but not (C).
Ans: D
33. Under which situation, the method of ‘experimentation, modeling and sensitivity analysis’ is used to determine the information requirements of the management?
(A) Total Uncertainty
(B) High Risk
(C) Low Risk
(D) Certainty
Ans: A
34. The technique(s) that can be used in data mining is/are:
(A) Non-linear Regression Methods
(B) Decision tree
(C) Neural networks
(D) All of the above
Ans: D
35. A Binomial distribution may be approximated by a Poisson distribution, if:
i. ‘n’ is large and ‘p’ is large.
ii. ‘n’ is small and ‘p’ is large.
iii. ‘n’ is small and ‘p’ is small.
iv. ‘n’ is large and ‘p’ is small.
Codes:
(A) i, ii and iii
(B) ii only
(C) iii and iv only
(D) iv only
Ans: D
36. Double taxation relief is normally provided by the country in which the parent company has its legal residence. It is provided in the following modes:
i. Credit system without deferral
ii. Credit system with deferral
iii. Deduction of tax paid abroad as expenditure
iv. Investment credit
v. Tax subsidy
Identify the correct combination.
Codes:
(A) i, ii, iii and iv
(B) i, ii, iv and v
(C) ii, iii, iv and v
(D) i, ii, iii and v
Ans: A
37. The strategies of a global firm are affected by the following factors:
i. Different countries have different labour mixes.
ii. The legal, economic, social and cultural environment varies from one country to another.
iii. Different countries have different time lines and geographical boundaries.
iv. Political relationship between the home country and the host country.
Indicate the correct combination.
Codes:
(A) i, ii and iii
(B) ii, iii and iv
(C) i, ii and iv
(D) i and ii only
Ans: C
38. Match the items of List – I and List – II:
List – I List – II
a. UNCTAD I i. India
b. UNCTAD II ii. Brazil
c. UNCTAD X iii. Thailand
d. UNCTAD XI iv. Switzerland
Indicate the correct matching.
Codes:
a b c d
(A) iv i iii ii
(B) iii i iv ii
(C) ii i iii iv
(D) iv i ii iii
Ans: A
39. In the context of International Business, whether an equal distribution of income in the host country:
(A) Has nothing to do with the MNCs market segmentation strategy.
(B) Matters greatly to the MNCs market segmentation strategy.
(C) Has little impact on the MNCs market segmentation strategy.
(D) Has a significant impact on the MNCs market segmentation strategy if the economy is at the take-off stage.
Ans: A
40. Statement-I: Cost of retained earnings is included in the cost of equity in the context of international business.
Statement-II: Interest rate swap and currency swap are used interchangeably in international business.
(A) Statement I is true, but Statement II is false.
(B) Statement I is false, but Statement II is true.
(C) Both the statements I and II are true.
(D) Both the Statements I and II are false.
Ans: D
41. Who said – “An entrepreneur always searches for change, responds to it and exploit it as an opportunity.”?
(A) James Burna
(B) McClelland
(C) Peter F. Drucker
(D) Robert C. Ronstadt
Ans: C
42. ‘Kakinada Experiment’ on achievement motivation was conducted in
(A) Uttar Pradesh
(B) Jammu & Kashmir
(C) Andhra Pradesh
(D) Gujarat
Ans: C
43. The entrepreneurial process consists of the following steps:
i. Management of the resulting enterprise.
ii. Determination of the required resources.
iii. Identification and evaluation of the opportunity.
iv. Development of the business plan.
Indicate the correct sequence.
Codes:
(A) iii iv i ii
(B) iv i iii ii
(C) iii iv ii i
(D) iv i ii iii
Ans: C
44. Match the items given in List – I and List – II:
List – I List – II
a. Market Research i. Sales promotion
b. Financial Plan ii. Form of business
c. Ownership iii. Budgeting
d. Marketing Plan iv. Exploring market opportunity
Codes:
a b c d
(A) i ii iii iv
(B) iv iii i ii
(C) iv iii ii i
(D) i ii iv iii
Ans: C
45. TePP stands for
(A) Technology for Promotion and Production
(B) Trade for Profitability and Productivity
(C) Technopreneur Promotion Programme
(D) None of the above
Ans: C
46. Indo-American Model of Corporate Governance sets top most priority to
(A) Business growth
(B) Customers
(C) Employees
(D) Shareholders
Ans: D
47. A good governance in corporate sector depends upon
(A) Strong political will
(B) Transparency and accountability
(C) Trade Union practices
(D) Social and political responses
Ans: B
48. Corporate leaders in India in private sector are tempted by a very high target of ________ and the concerned employees have to achieve the target for promotion and stability.
(A) Money making
(B) Business growth
(C) Product development
(D) Profit
Ans: D
49. Corporate business ethics is ________ norms and pattern that spring from organizational view of good and bad, right and wrong.
(A) Social
(B) Behavioural
(C) Institutional
(D) Individual
Ans: B
50. Trade Union strike supporting a political cause and affecting production activities is a problem related to
(A) Socio-economic phenomenon
(B) Ethical and technical phenomenon
(C) Ethical and economic phenomenon
(D) Socio-political phenomenon
Ans: C
51. Arrange the following stages involved in DBMS in proper sequence:
i. Creating
ii. Defining
iii. Data structuring
iv. Updating
v. Interrogating
Codes:
(A) i, iii, ii, iv and v
(B) ii, i, iii, v and iv
(C) iii, ii, v, iv and i
(D) ii, iii, i, iv and v
Ans: C
52. For years Converse had a major share in the athletic shoe market. Then, in the 1980’s, Nike and Reebok re-invented the athletic shoe industry, and Converse changed nothing. Now Converse is a minor brand in a growth industry. According to the BCG matrix, Converse is an exampleof
(A) Cash Cow
(B) Dog
(C) Question mark
(D) Star
Ans: C
53. The managerial process of developing and maintaining a viable fit between an organization’s objectives, skills, and resources, and its market opportunities is called
(A) Establishing strategic business units
(B) Market-oriented strategic planning
(C) Market research
(D) Portfolio analysis
Ans: B
54. Low cost, product differentiation, and focused market are the examples of
(A) Corporate strategy
(B) Business strategy
(C) Functional strategy
(D) Behavioural strategy
Ans: B
55. The word “Tactic” is the most likely to be associated with
(A) Corporate strategy
(B) Business strategy
(C) Operational strategy
(D) Behavioural strategy
Ans: C
56. A marketing effectiveness review is part of _______ control.
(A) Annual Plan
(B) Profitability
(C) Proficiency
(D) Strategic
Ans: D
57. When a cigarette manufacturing company drastically cuts price of a popular brand of its cigarettes, to increase its share in the competitive market, it is implementing a ______strategy.
(A) Integrative growth
(B) Market development
(C) Market penetration
(D) Product development
Ans: C
58. An entrepreneur who is neither willing to introduce new changes nor to adopt new methods is known as:
(A) Adoptive Entrepreneur
(B) Fabian Entrepreneur
(C) Innovative Entrepreneur
(D) Drone Entrepreneur
Ans: D
59. UNIDO preparatory meeting on the “Role of Women in Industrialisation in Developing Countries” held in February 1978. Identified constraints, which hinder women from participating in industrial activities.
The meeting was held at
(A) Vienna
(B) New Delhi
(C) Geneva
(D) Mexico City
Ans: A
60. Which of the following statements is false?
(A) Venture capital is outside equity that comes from professionally managed pools of investor money.
(B) Term Loan from bank is needed to pay dividends toshareholders on time.
(C) Permanent working capital is the amount a firm needs to produce goods and services at the lowest point of demand.
(D) Temporary working capital is the amount which a firm may need to meet seasonal demand.
Ans: B
61. Small Industries Development Organisation (SIDO) has been set up to
(A) Promote, aid and foster the growth of small-scale industries in the country.
(B) Formulate, coordinate and monitor the policies and programmes for promotion and development of small scale industries.
(C) Provide consultancy and training to small entrepreneurs – both existing and prospective.
(D) Provide integrated administrative framework at the district level for promotion of small-scale industries in rural areas.
Ans: B
62. Match the items in the two lists:
List – I List – II
(Part of Social Responsibility) (Features)
a. Responsibility towards owners i. Stock
b. Responsibility towards employees’ ii. Quality product
c. Responsibility towards depositors’ iii. Safety of their investment
d. Responsibility towards customers iv. Job security
v. Interest
Codes:
a b c d
(A) i iii ii v
(B) iii iv v ii
(C) i iii v ii
(D) iii iv ii i
Ans: B
63. First industrial estate in India was established by SSIB in 1955 at
(A) Okhla in Delhi
(B) Ghaziabad in Uttar Pradesh
(C) Rajkot in Gujarat
(D) Sannat Nagar in Jammu &Kashmir
Ans: C
64. The Companies Bill, 2012 has been passed by Parliament in August, 2013. What is not true about this Bill?
1. It does not provide for corporate social responsibility.
2. It provides for measures to curb corporate frauds.
3. It does not include the concept of corporate fraud.
4. It emphasises on self-reputation and stringent penalties on professionals.
Codes:
(A) All of the above are true.
(B) While items 1 and 2 are true, the rest are not.
(C) While items 2 and 4 are true, the rest are not.
(D) All of the above are false.
Ans: C
65. A high ranking organizational official (e.g. general counsellor or vice president) who is expected to provide strategies for ensuring ethical conduct throughout the organization is known as
(A) Ethics Manager
(B) Ethics Officer
(C) Ethics Controller
(D) Ethics Counsellor
Ans: B
66. Indicate the correct code for the following statements about Assertion (A) And Reason (R):
Assertion (A): All ethical theories are not equally applicable every time in all types of ethical dilemma resolution.
Reason (R): The ethical resolution should be based as far as possible on a cognitive ethical principle with justification.
Codes:
(A) (A) is correct, (R) is incorrect.
(B) (R) is correct, (A) is incorrect.
(C) Both the statements (A) and (R) are correct.
(D) Both the statements (A) and (R) are incorrect.
Ans: C
67. According to which committee should an organization submit regular social reports?
(A) Sachchar Committee
(B) Kumarmangalam Birla Report
(C) Both of above
(D) None of above
Ans: A
68. The method of collecting money for Corporate Social Responsibility (CSR) by raising prices or following many other unethical ways is often described as:
(A) Reverse effect
(B) Reverse Robinhood effect
(C) Boomerang
(D) Roosevelt effect
Ans: B
69. When the values and priorities of the parent organization guides the strategic decision making of all its international operations, it is known as
(A) Polycentric Orientation
(B) Regiocentric Orientation
(C) Ethnocentric Orientation
(D) Geocentric Orientation
Ans: C
70. Indicate the correct code for the following two statements of Assertion and Reason:
Assertion (A): GDP increases a currency’s value.
Reason (R): Since there is likely to be greater demand for country’s currency.
Codes:
(A) (A) and (R) both are correct, but (R) is not the appropriate explanation of (A).
(B) (A) and (R) both are correct and (R) is the right explanation of (A).
(C) (A) is correct, but (R) is not correct.
(D) Both (A) and (R) are not correct.
Ans: A
71. The salient features of India’s Foreign Trade Policy are:
i. Reducing the interest burden and extension of the interest subvention scheme.
ii. Rationalizing defence-related imports.
iii. Focus on labour-intensive sectors.
iv. Extension of zero-duty EPCG scheme.
Codes:
(A) All (i), (ii), (iii) and (iv)
(B) (i), (ii) and (iii) only
(C) (i), (iii) and (iv) only
(D) (ii), (iii) and (iv) only
Ans: C
72. Arrange the following steps of Dispute Settlement Mechanism under the WTO in the systematic order:
i. Panel Proceedings
ii. Appellate Body
iii. Consultations
iv. Compliance Panel
v. Arbitration Panel
Codes:
(A) iii i ii iv v
(B) v iv iii ii i
(C) iv ii iii v i
(D) i ii iii iv v
Ans: A
73. Which of the following schemes is not a part of India’s Foreign Trade Policy 2009-14?
(A) DFIA (Duty-Free Import Authorization)
(B) TFITES (Tax-Free IT Export Scheme)
(C) VKGUY (Vishesh Krishi and Gram Udyog Yojana)
(D) FMS (Focus-Market Scheme)
Ans: B
74. Indicate correct code for the following statements of Assertion (A) and Reasoning (R):
Assertion (A): The Global Managers must develop systems and policies that address floor price, ceiling price and optimum price.
Reasoning (R): The Global Managers must be in line with global opportunities and constraints.
Codes:
(A) (A) is correct, but (R) is not the right explanation of (A).
(B) (A) and (R) both are correct, but (R) is not the right explanation of (A).
(C) (A) and (R) both are correct, and (R) is the right explanation of (A).
(D) (A) and (R) both are incorrect.
Ans: C
75. Match the following in the context of International Market Entry and indicate the correct code:
List – I List – II
a. Assembly i. Exports
b. Acquisition ii. Indirect Exports
c. Export House iii. Contractual Entry
d. Commission Agent iv. Direct Investment
Codes:
a b c d
(A) iii iv i ii
(B) iv iii ii i
(C) i ii iii iv
(D) iv ii iii i
Ans: B
76. Work measurement refers to
(A) The length of time it takes to complete a work task assigned to a specific job.
(B) Improving work methods.
(C) Arrangement of machines according to operations.
(D) Planning the work and working for the plans.
Ans: A
77. Facility planning includes
(A) Determination of production capacity
(B) Determination of production facilities location
(C) Determination of the layout
(D) All the above
Ans: D
78. Match the following:
a. For fraction or proportion of defects 1. R-chart
b. For number of defects 2. C-chart
c. For number of defects for unit 3. nP-Chart
d. For monitoring process variability 4. P-Chart
Codes:
a b c d
(A) 1 2 3 4
(B) 4 3 2 1
(C) 2 1 4 3
(D) 3 4 1 2
Ans: B
79. Statement – I: One of the major causes of the industry for larger capacity is the argument that large facilities facilitate greater economies of scale. But the major concern for building big capacity is that funds will be tied up or scarcity of funds.
Statement – II: A viable alternative to larger capacity production facilities is to develop subcontractor and supplier networks.
(A) Both statements I & II are correct.
(B) Both statements I & II are false.
(C) Statement I is correct and II is false.
(D) Statement II is correct and I is false.
Ans: A
80. In a symmetrical distribution
(A) Mean, Median and Mode values are identical.
(B) Mean, Median and Standard Deviation are equal.
(C) Mean, Median and Correlation are equal.
(D) None of the above
Ans: A
81. From the following, identify the test which can be used both as parametric and non-parametric?
(A) ‘t’ test
(B) ‘F’ test
(C) ‘Chi-square’ test
(D) ‘Wil-coxon’ test
Ans: C
82. Arrange the following in ascending order in the testing of hypothesis:
(i) Determining the level of significance
(ii) Deciding the Statistical Test and computation
(iii) Setting the hypothesis
(iv) Decision
Codes:
(A) (iii), (ii), (i) and (iv)
(B) (iii), (i), (ii) and (iv)
(C) (i), (iii), (ii) and (iv)
(D) (i), (iii), (iv) and (ii)
Ans: B
83. Y = a + bX refers to
(A) Y = independent variable, a = slope of the line, b = Y intercept and X = dependent variable
(B) Y = dependent variable, a = slope of the line, b = Y intercept and X = independent variable
(C) Y = independent variable, a = dependent variable, b = Y intercept and X = slope of the line
(D) Y = dependent variable, a = Y intercept, b = slope of the line and X = independent variable
Ans: D
84. Select the most appropriate option from Column B against the items in Column A:
Column A Column B
a. Computer used to operate large corporate systems and databases 1.Components of information system
b. Data flow diagram 2. RAID
c. Equipment, procedures and end user 3. Structured design
Codes:
a b c
(A) 3 2 1
(B) 2 3 1
(C) 1 2 3
(D) 2 1 3
Ans: B
85. According to Michael Porter, a strategy aims at producing products and services considered unique industry wide and directed at consumers who are relatively price-insensitive is known as
(A) Cost Leadership – Best Value
(B) Differentiation
(C) Focus – Low Cost
(D) Focus – Best Value
Ans: B
86. In context of Industry Analysis which matrix allows strategists to summarise and evaluate economic, social, cultural, demographic, environmental, political, governmental, legal, technological and competitive information?
(A) EFE Matrix
(B) CPM Matrix
(C) BCG Matrix
(D) IFE Matrix
Ans: A
87. Which among the following best describes the process of gaining competitive advantage in a firm?
(A) Strengths → Weaknesses → Distinctive Competencies → Competitive Advantage
(B) Weaknesses → Strengths → Distinctive Advantages → Competitive Advantages
(C) Weaknesses → Strengths → Distinctive Competencies → Competitive Advantages
(D) Distinctive Competencies → Weaknesses → Strengths → Competitive Advantages
Ans: A
88. According to Porter, the nature of competitiveness in a given industry can be viewed as a composite of the following five forces:
1. Rivalry among competing firms.
2. Potential entry of new competitors.
3. Potential development of substitute products.
4. Bargaining power of suppliers.
5. Bargaining power of consumers.
Identify the force which is central (most powerful) to remaining four:
(A) Potential development of substitute products.
(B) Potential entry of new competitors.
(C) Bargaining power of consumers.
(D) Rivalry among competing firms.
Ans: D
89. Match the following:
Organizational Structure Advantage
a. Functional Structure 1. Clarity of project objectives
b. Divisional Structure 2. Smooth delegation of authority and responsibility
c. Matrix Structure 3. Simple and unexpensive
d. Strategic Business Unit (SBU) 4. Ease of fixing accountability
Codes:
a b c d
(A) 1 2 3 4
(B) 3 4 1 2
(C) 3 4 2 1
(D) 4 3 1 2
Ans: B
90. A sound business opportunity is the result of appropriate interaction between:
(A) Needs of the society
(B) Capabilities of an entrepreneur
(C) Resources available in the environment
(D) all of the above
Ans: D
91. “An entrepreneur always searches for change, responds to it and exploits it as an opportunity.” Who said it?
(A) F.W. Taylor
(B) Peter F. Drucker
(C) J.R. Tulsian
(D) Max Weber
Ans: B
92. An industrial unit, according to RBI, is sick if
(A) Incurred cash loss in the previous year.
(B) Likely to incur loss in the following year.
(C) Current ratio is less than 1: 1 with weak debt-equity ratio.
(D) all of the above.
Ans: D
93. Which is not the object of Entrepreneurship Development Programmes?
(A) To create successful entrepreneur
(B) To remove doubts of entrepreneurs and to give solutions to the problems
(C) To create awareness about Government schemes and programmes
(D) None of the above
Ans: A
94. Match the following:
a. Central Manufacturing Institute 1. Deals with paper industry
b. Central Pulp and Paper Research Institute 2. Deals with pollution control in Indian Tannerics
c. Central leather Research Institute 3. Deals with Machine Tools
d. Electronic Service and Training Centre 4. Deals with training, technical and consultancy services
Codes:
a b c d
(A) 1 2 3 4
(B) 3 1 2 4
(C) 2 3 4 1
(D) 4 3 1 2
Ans: B
95. The customer joining the queue and leaving it afterwards is defined as
(A) Jockeying
(B) Balking
(C) Reneging
(D) None of the above
Ans: C
96. Which among the following is not correct with regards to Clause 49 of SEBI Act?
(A) It came into effect from 31stDecember 2005.
(B) Clause 49 is related to the Listing Agreement to the Indian Stock Exchange.
(C) It desires 50 percent in dependent Directors.
(D) None of the above
Ans: D
97. Which of the following powers of Directors cannot be exercised without the consent of shareholders in General Meeting?
(A) Power to make calls on shareholders
(B) Power to make loans
(C) Power to buy back its shares
(D) Power to borrow monies exceeding the aggregate of the paid-up capital of the company and its free reserves.
Ans: D
98. The professional having high ranking and trained to uphold the highest standard and effective operations, compliance and administration as corporate governance, is known as
(A) Directors of Company
(B) Chairman of Company
(C) Company Secretary
(D) Shareholders
Ans: C
99. Governance is the system of values, policies and institutions by which a society manages its economic, political and social affairs through interactions within and among the state, civil society and private sector is defined by
(A) World Bank
(B) UNDP
(C) European Commission
(D) None of the above
Ans: B
100. Match the following with regards to environmental ethical issues:
a. Ozone Depletion 1. Lead poisoning
b. Environmental Health 2. Deforestation
c. Logging 3. Food controversies
d. Genetic Engineering 4. CFC
Codes:
a b c d
(A) 4 2 1 3
(B) 4 1 2 3
(C) 4 3 2 1
(D) 4 3 1 2
Ans: B