MANAGEMENT- PAGE 4
MANAGEMENT MCQs
1. Which of the following is not one of the important objectives of Financial Management?
(A) Profit maximisation
(B) Wealth maximisation
(C) Value maximisation
(D) Social responsibility
Ans: D
2. For ‘make or buy decision’, which cost is to be considered?
(A) Marginal cost
(B) Total cost
(C) Fixed cost
(D) None of the above
Ans: A
3. Which is the method applied for measuring GNP?
(A) Income method
(B) Expenditure method
(C) Value Added method
(D) All of the above
Ans: D
4. Which of the following project appraisal method is not based on time value of money?
(A) Payback method
(B) Net present value method
(C) Internal rate of return method
(D) Discounted payback method
Ans: A
5. Micro, Small and Medium Enterprises Development Act, 2006 is related to
(A) Industrial Policy
(B) Investment Limit
(C) Business Opportunities
(D) None of these
Ans: B
6. Selection is the process in which candidates for employment are divided into two classes – those who are to be offered employment and those who are not.” This is stated by
(A) Dale Yoder
(B) Milton M. Mandell
(C) R.D. Agarwal
(D) Edwin Flippo
Ans: A
7. Who defines advertising as “any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor?
(A) Philip Kotler
(B) C.K. Prahlad
(C) Chartered Institute of Marketing
(D) American Marketing Association
Ans: D
8. The exchange rate between the currencies of two countries will be equal to the ratio of the price indices in these countries is explained by
(A) Inflation adjustment
(B) Purchase power parity
(C) Interest rate parity
(D) Transaction exposure
Ans: B
9. The ultimate mission or purpose is to relate human resources to future enterprise needs, so as to maximize the future return on investment in human resources. It is referred as
(A) Demand and Supply
(B) Forecasting
(C) Human Resource Planning
(D) Human Resource Development
Ans: C
10. Other things being equal an increase in income leads to a decrease in demand for
(A) Superior Goods
(B) Inferior Goods
(C) Both (A) and (B)
(D) None of the above
Ans: B
11. “Hind Mazdoor Sabha” established in which year?
(A) 1940
(B) 1942
(C) 1948
(D) 1952
Ans: C
12. The evaluation of Business activities and behaviour as right or wrong is called
(A) Corporate Governance
(B) Business Ethics
(C) Social Responsibility
(D) None of the above
Ans: B
13. A market structure which consists of one buyer and one seller is referred as
(A) Monopsony
(B) Bilateral monopoly
(C) Monopoly
(D) Duopoly
Ans: B
14. At which stage of new product development process, the launching of New Product will take place?
(A) Business Analysis
(B) Commercialization
(C) Test Marketing
(D) Marketing Strategy Development
Ans: B
15. The cost of equity can be measured as
(A) Rate of interest (1 – t).
(B) Rate of dividend (1– t).
(C) Rate of dividend × (Face value – Issue Price)/n
(D) D1/P0 + g
Ans: D
16. If the regression coefficient B in Y = A + B X is equal to zero, then the regression line will
(A) Pass through the origin
(B) Be parallel to the x-axis
(C) Be parallel to the y-axis
(D) Neither intersects x-axis nor y-axis
Ans: B
17. An entrepreneurial person employed by a corporation and encouraged to be innovative and creative is referred to as
(A) Competitor
(B) Supplier
(C) Entrepreneur
(D) Intrapreneur
Ans: D
18. Which of the following provides direction, serves as standards for evaluating performance and motivates members of the organization?
(A) Mission
(B) Values
(C) Objectives
(D) Goals
Ans: C
19. The four systems of Management in terms of Leadership styles are related to
(A) Blake and Mouton
(B) Philip Kotler
(C) Peter F. Drucker
(D) Rensis Likert
Ans: D
20. Euro dollars are
(A) Currency
(B) Deposits
(C) Bonds
(D) Equity
Ans: B
21. In production control, scheduling includes
(A) Deciding about the time when the production will reach various departments.
(B) Estimating the time to be consumed in these departments.
(C) How much time will be taken in transferring production from one department to another.
(D) All of the above.
Ans: D
22. Making profit by taking advantage of different prices prevailing in different markets is referred as
(A) Hedging
(B) Speculation
(C) Arbitrage
(D) Gambling
Ans: C
23. Gegabyte refers to
(A) 1024 Bytes
(B) 1024 Kilobytes
(C) 1024 Megabytes
(D) 102400 Bytes
Ans: C
24. Environmental issues can be managed by
(A) Investing in environment friendly process or products.
(B) Managing environmental regulations.
(C) Investing in environmental performance improvement.
(D) All of the above.
Ans: D
25. A formal document of what the entrepreneur intends to do to sell enough of the firm’s product or service to make a satisfactory profit is called
(A) Long range plan
(B) Strategic plan
(C) Business plan
(D) None of the above
Ans: C
26. Among the following financial derivatives, which involves the least risk for the holder?
(A) Forward
(B) Option
(C) Futures
(D) Swap
Ans: B
27. Which level of Managers translate thecorporate strategy into concrete objectives for their individual business?
(A) Business level
(B) Corporate level
(C) Multi-Business level
(D) Functional level
Ans: A
28. The number of subordinates a superior can effectively handle is called
(A) Organising people
(B) Span of control
(C) Direction
(D) Coordination
Ans: B
29. Selection of specific media in which advertisements will be run and when they will be run to reach the target market is called
(A) Advertising
(B) Public Relations
(C) Media Planning
(D) Publicity
Ans: C
30. Statistical Quality Control requires determination of
(A) Quality tolerance limit
(B) Quantity measurement
(C) Production leads time
(D) Inventory carrying cost
Ans: A
31. With reference to Working Capital Management, the term ‘float’ relates to
(A) Inventory Management
(B) Receivables Management
(C) Cash Management
(D) Marketable Securities
Ans: C
32. Which communication component is not a paid form of communication?
(A) Advertising
(B) Sales promotion
(C) Personal selling
(D) Publicity
Ans: D
33. The Government of India established the Small Industries Development Organisation (SIDO) in the year:
(A) 1951
(B) 1972
(C) 1954
(D) 1982
Ans: C
34. Match the following:
List – I List – II
a. Functional Organisation 1. F.W. Taylor
b. Transactional Analysis 2. McClelland
c. Managerial Grid 3. Eric Berne
d. Need Theory 4. Blake and Mouton
Codes:
a b c d
(A) 1 3 4 2
(B) 1 2 3 4
(C) 4 3 2 1
(D) 2 1 4 3
Ans: A
35. Which of the following is not a Trading block?
(A) NAFTA
(B) ASEAN
(C) SAARC
(D) IMF
Ans: D
36. Takeover generally involves
(A) The acquisition of part of an undertaking to enable the acquirer to increase the market share of the product concerned.
(B) Theacquisition of certain block of equity capital of a company which enables the acquirer to exercise control over the affairs of the company.
(C) Taking over the responsibility to have trade agreement for finished product.
(D) Taking over certain long-term liabilities of another group company to help it financially.
Ans: B
37. Which of the following is not a function of distribution agency?
(A) Transportation
(B) Servicing
(C) Inventorying
(D) Manufacturing
Ans: D
38. Cars are parked in a very big parking lot. A researcher is required to estimate the proportion of cars that are red or the proportion of cars that are from a Japanese manufacturer. Which of the following statement is not correct?
(A) A convenience sample of cars parked near the gate may give a biased estimate of the proportion of cars which are from a Japanese Manufacturer.
(B) Different investigators may get different estimates for the proportion of cars that are red.
(C) The sample proportion of cars that are red is an unbiased estimate of the population proportion if the sampling method is simple random.
(D) A sample of 100 cars in a convenience sample is always better than a sample of 20 cars from a proper random sampling method.
Ans: D
39. Who is father of Administrative Management Theory?
(A) Max Weber
(B) Frank Gilbraith
(C) Henry Fayol
(D) Henry Gantt
Ans: C
40. The process of determining the tasks that make-up a job and the skills, abilities and responsibilities needed to perform the job is called
(A) Job Analysis
(B) Job Description
(C) Job Enrichment
(D) All of the above
Ans: A
41. GATT stands for
(A) General Accord on Tariff and Trade
(B) Generous Agreement on Trade and Tariff
(C) General Agreement on Tariff and Trade
(D) Generalist Agreement on Trade and Tariff
Ans: C
42. People who take the risks necessary to organize manage and receive the financial profits and non-monetary rewards are called
(A) Suppliers
(B) Employees
(C) Competitors
(D) Entrepreneurs
Ans: D
43. A Marketing database is built as an aid to
(A) Market research
(B) Product-mix expansion
(C) Reducing cost of production
(D) Price hike
Ans: A
44. The model that applies to Economic Order Quantity for Inventory Management, was proposed to be applied to Cash Management by
(A) Miller and Orr
(B) William J. Baumol
(C) William Sharpe
(D) David Durand
Ans: B
45. If a hypothesis is statistically significant, then it is concluded that
(A) The observed result is probably not due to chance.
(B) The observed result is probably a chance result.
(C) The observed result cannotpossibly be due to chance.
(D) The null hypothesis of no relationship is probably true.
Ans: A
46. In which stage of product life cycle, the company takes decision whether to maintain, harvest or drop the product?
(A) Introduction
(B) Growth
(C) Maturity
(D) Decline
Ans: D
47. Recruitment is concerned with
(A) Selecting the right candidate
(B) Developing a pool of job candidates
(C) Getting applications
(D) None of the above
Ans: B
48. In production management, dispatching includes:
(A) Giving work to machines and places.
(B) Providing materials, tools, etc. to works.
(C) Issuing appropriate orders for production process.
(D) All of the above.
Ans: D
49. Which of the following is the internal sources of recruitment?
(A) Advertisement
(B) Selection
(C) Both (A) and (B)
(D) None of the above
Ans: D
50. Which Business unit generates substantial cash surpluses due to low industrial growth rate and high market share?
(A) Dog
(B) Cash Cow
(C) Question Mark
(D) Star
Ans: B
(A) Profit maximisation
(B) Wealth maximisation
(C) Value maximisation
(D) Social responsibility
Ans: D
2. For ‘make or buy decision’, which cost is to be considered?
(A) Marginal cost
(B) Total cost
(C) Fixed cost
(D) None of the above
Ans: A
3. Which is the method applied for measuring GNP?
(A) Income method
(B) Expenditure method
(C) Value Added method
(D) All of the above
Ans: D
4. Which of the following project appraisal method is not based on time value of money?
(A) Payback method
(B) Net present value method
(C) Internal rate of return method
(D) Discounted payback method
Ans: A
5. Micro, Small and Medium Enterprises Development Act, 2006 is related to
(A) Industrial Policy
(B) Investment Limit
(C) Business Opportunities
(D) None of these
Ans: B
6. Selection is the process in which candidates for employment are divided into two classes – those who are to be offered employment and those who are not.” This is stated by
(A) Dale Yoder
(B) Milton M. Mandell
(C) R.D. Agarwal
(D) Edwin Flippo
Ans: A
7. Who defines advertising as “any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor?
(A) Philip Kotler
(B) C.K. Prahlad
(C) Chartered Institute of Marketing
(D) American Marketing Association
Ans: D
8. The exchange rate between the currencies of two countries will be equal to the ratio of the price indices in these countries is explained by
(A) Inflation adjustment
(B) Purchase power parity
(C) Interest rate parity
(D) Transaction exposure
Ans: B
9. The ultimate mission or purpose is to relate human resources to future enterprise needs, so as to maximize the future return on investment in human resources. It is referred as
(A) Demand and Supply
(B) Forecasting
(C) Human Resource Planning
(D) Human Resource Development
Ans: C
10. Other things being equal an increase in income leads to a decrease in demand for
(A) Superior Goods
(B) Inferior Goods
(C) Both (A) and (B)
(D) None of the above
Ans: B
11. “Hind Mazdoor Sabha” established in which year?
(A) 1940
(B) 1942
(C) 1948
(D) 1952
Ans: C
12. The evaluation of Business activities and behaviour as right or wrong is called
(A) Corporate Governance
(B) Business Ethics
(C) Social Responsibility
(D) None of the above
Ans: B
13. A market structure which consists of one buyer and one seller is referred as
(A) Monopsony
(B) Bilateral monopoly
(C) Monopoly
(D) Duopoly
Ans: B
14. At which stage of new product development process, the launching of New Product will take place?
(A) Business Analysis
(B) Commercialization
(C) Test Marketing
(D) Marketing Strategy Development
Ans: B
15. The cost of equity can be measured as
(A) Rate of interest (1 – t).
(B) Rate of dividend (1– t).
(C) Rate of dividend × (Face value – Issue Price)/n
(D) D1/P0 + g
Ans: D
16. If the regression coefficient B in Y = A + B X is equal to zero, then the regression line will
(A) Pass through the origin
(B) Be parallel to the x-axis
(C) Be parallel to the y-axis
(D) Neither intersects x-axis nor y-axis
Ans: B
17. An entrepreneurial person employed by a corporation and encouraged to be innovative and creative is referred to as
(A) Competitor
(B) Supplier
(C) Entrepreneur
(D) Intrapreneur
Ans: D
18. Which of the following provides direction, serves as standards for evaluating performance and motivates members of the organization?
(A) Mission
(B) Values
(C) Objectives
(D) Goals
Ans: C
19. The four systems of Management in terms of Leadership styles are related to
(A) Blake and Mouton
(B) Philip Kotler
(C) Peter F. Drucker
(D) Rensis Likert
Ans: D
20. Euro dollars are
(A) Currency
(B) Deposits
(C) Bonds
(D) Equity
Ans: B
21. In production control, scheduling includes
(A) Deciding about the time when the production will reach various departments.
(B) Estimating the time to be consumed in these departments.
(C) How much time will be taken in transferring production from one department to another.
(D) All of the above.
Ans: D
22. Making profit by taking advantage of different prices prevailing in different markets is referred as
(A) Hedging
(B) Speculation
(C) Arbitrage
(D) Gambling
Ans: C
23. Gegabyte refers to
(A) 1024 Bytes
(B) 1024 Kilobytes
(C) 1024 Megabytes
(D) 102400 Bytes
Ans: C
24. Environmental issues can be managed by
(A) Investing in environment friendly process or products.
(B) Managing environmental regulations.
(C) Investing in environmental performance improvement.
(D) All of the above.
Ans: D
25. A formal document of what the entrepreneur intends to do to sell enough of the firm’s product or service to make a satisfactory profit is called
(A) Long range plan
(B) Strategic plan
(C) Business plan
(D) None of the above
Ans: C
26. Among the following financial derivatives, which involves the least risk for the holder?
(A) Forward
(B) Option
(C) Futures
(D) Swap
Ans: B
27. Which level of Managers translate thecorporate strategy into concrete objectives for their individual business?
(A) Business level
(B) Corporate level
(C) Multi-Business level
(D) Functional level
Ans: A
28. The number of subordinates a superior can effectively handle is called
(A) Organising people
(B) Span of control
(C) Direction
(D) Coordination
Ans: B
29. Selection of specific media in which advertisements will be run and when they will be run to reach the target market is called
(A) Advertising
(B) Public Relations
(C) Media Planning
(D) Publicity
Ans: C
30. Statistical Quality Control requires determination of
(A) Quality tolerance limit
(B) Quantity measurement
(C) Production leads time
(D) Inventory carrying cost
Ans: A
31. With reference to Working Capital Management, the term ‘float’ relates to
(A) Inventory Management
(B) Receivables Management
(C) Cash Management
(D) Marketable Securities
Ans: C
32. Which communication component is not a paid form of communication?
(A) Advertising
(B) Sales promotion
(C) Personal selling
(D) Publicity
Ans: D
33. The Government of India established the Small Industries Development Organisation (SIDO) in the year:
(A) 1951
(B) 1972
(C) 1954
(D) 1982
Ans: C
34. Match the following:
List – I List – II
a. Functional Organisation 1. F.W. Taylor
b. Transactional Analysis 2. McClelland
c. Managerial Grid 3. Eric Berne
d. Need Theory 4. Blake and Mouton
Codes:
a b c d
(A) 1 3 4 2
(B) 1 2 3 4
(C) 4 3 2 1
(D) 2 1 4 3
Ans: A
35. Which of the following is not a Trading block?
(A) NAFTA
(B) ASEAN
(C) SAARC
(D) IMF
Ans: D
36. Takeover generally involves
(A) The acquisition of part of an undertaking to enable the acquirer to increase the market share of the product concerned.
(B) Theacquisition of certain block of equity capital of a company which enables the acquirer to exercise control over the affairs of the company.
(C) Taking over the responsibility to have trade agreement for finished product.
(D) Taking over certain long-term liabilities of another group company to help it financially.
Ans: B
37. Which of the following is not a function of distribution agency?
(A) Transportation
(B) Servicing
(C) Inventorying
(D) Manufacturing
Ans: D
38. Cars are parked in a very big parking lot. A researcher is required to estimate the proportion of cars that are red or the proportion of cars that are from a Japanese manufacturer. Which of the following statement is not correct?
(A) A convenience sample of cars parked near the gate may give a biased estimate of the proportion of cars which are from a Japanese Manufacturer.
(B) Different investigators may get different estimates for the proportion of cars that are red.
(C) The sample proportion of cars that are red is an unbiased estimate of the population proportion if the sampling method is simple random.
(D) A sample of 100 cars in a convenience sample is always better than a sample of 20 cars from a proper random sampling method.
Ans: D
39. Who is father of Administrative Management Theory?
(A) Max Weber
(B) Frank Gilbraith
(C) Henry Fayol
(D) Henry Gantt
Ans: C
40. The process of determining the tasks that make-up a job and the skills, abilities and responsibilities needed to perform the job is called
(A) Job Analysis
(B) Job Description
(C) Job Enrichment
(D) All of the above
Ans: A
41. GATT stands for
(A) General Accord on Tariff and Trade
(B) Generous Agreement on Trade and Tariff
(C) General Agreement on Tariff and Trade
(D) Generalist Agreement on Trade and Tariff
Ans: C
42. People who take the risks necessary to organize manage and receive the financial profits and non-monetary rewards are called
(A) Suppliers
(B) Employees
(C) Competitors
(D) Entrepreneurs
Ans: D
43. A Marketing database is built as an aid to
(A) Market research
(B) Product-mix expansion
(C) Reducing cost of production
(D) Price hike
Ans: A
44. The model that applies to Economic Order Quantity for Inventory Management, was proposed to be applied to Cash Management by
(A) Miller and Orr
(B) William J. Baumol
(C) William Sharpe
(D) David Durand
Ans: B
45. If a hypothesis is statistically significant, then it is concluded that
(A) The observed result is probably not due to chance.
(B) The observed result is probably a chance result.
(C) The observed result cannotpossibly be due to chance.
(D) The null hypothesis of no relationship is probably true.
Ans: A
46. In which stage of product life cycle, the company takes decision whether to maintain, harvest or drop the product?
(A) Introduction
(B) Growth
(C) Maturity
(D) Decline
Ans: D
47. Recruitment is concerned with
(A) Selecting the right candidate
(B) Developing a pool of job candidates
(C) Getting applications
(D) None of the above
Ans: B
48. In production management, dispatching includes:
(A) Giving work to machines and places.
(B) Providing materials, tools, etc. to works.
(C) Issuing appropriate orders for production process.
(D) All of the above.
Ans: D
49. Which of the following is the internal sources of recruitment?
(A) Advertisement
(B) Selection
(C) Both (A) and (B)
(D) None of the above
Ans: D
50. Which Business unit generates substantial cash surpluses due to low industrial growth rate and high market share?
(A) Dog
(B) Cash Cow
(C) Question Mark
(D) Star
Ans: B
51. Taylor differential piece rate system is related to
(A) Time wage system
(B) Piece wage system
(C) Incentive wage system
(D) None of the above
Ans: C
52. Financial risk arises from
(A) R & D and operations stages of value chain
(B) GNP growth rate and competitive environment
(C) Volatility of interest rates, currency rates, commodities prices and stock prices
(D) Changes in laws and regulations
Ans: C
53. A company using high price and high promotion policy is adopting the following strategy:
(A) Slow skimming
(B) Rapid Penetration
(C) Slow Penetration
(D) Rapid Skimming
Ans: D
54. Which one of the following are the functions of personnel management?
(A) Planning, Organising, Staffing, Directing and Controlling
(B) Planning, Organising, Coordinating, Budgeting and Controlling
(C) Procurement, Development, Compensation, Integration and Maintenance
(D) Perception, Development, Learning, Organisation and Behaviour
Ans: C
55. Match the following:
(i) Net present value method I. Inflow after interest and tax
(ii) Average rate of return II. Discounted cash flow
(iii) Internal rate of return III. Traditional method
(iv) Pay back method IV. Decision based on cut-off rate
Codes:
(i) (ii) (iii) (iv)
(A) IV I II III
(B) IV III II I
(C) II I IV III
(D) I III IV II
Ans: C
56. The number of product lines a company carries is called
(A) Product range
(B) Product mix depth
(C) Product mix width
(D) Product line length
Ans: C
57. Entrepreneurial failures can be attributed to:
(A) Low quality raw materials
(B) Labour problems
(C) High overhead costs
(D) All of the above
Ans: D
58. What are the economic goals that guide the strategic direction of every viable business organization?
(A) Goal, profit and public image
(B) Public image, growth and profit
(C) Survival, growth and profitability
(D) Growth, profitability and public image
Ans: C
59. Match the following:
(i) Sensitivity training (a) Leadership
(ii) Hygiene factors (b) Organisational Development
(iii) Number of subordinates (c) Motivation
(iv) Likert’s management system (d) Span of management
Codes:
(i) (ii) (iii) (iv)
(A) (b) (c) (d) (a)
(B) (a) (c) (d) (b)
(C) (d) (c) (a) (b)
(D) (a) (b) (c) (d)
Ans: A
60. If the intrinsic value of the share is greater than market value, such shares are:
(A) Under valued
(B) Over valued
(C) Neutral
(D) None of the above
Ans: A
61. Which of the following is not a market oriented pricing technique?
(A) Penetration pricing
(B) Going rate pricing
(C) Perceived value pricing
(D) Early-cash recovery pricing
Ans: D
62. Which one of the following facilitates E-Commerce?
(A) Public relations
(B) Direct marketing
(C) Personal selling
(D) Product quality
Ans: B
63. Sensitivity analysis may be used in
(A) Linear programming
(B) Transportation programming
(C) PERT
(D) CPM
Ans: A
64. Sensitivity training method is a part of
(A) On-the-job training method
(B) Off-the-job training method
(C) Vestibule training method
(D) None of the above
Ans: C
65. A machine on the average produces 5% defective items. What are the mean and variance in a set of 32 items?
(A) 16, 8
(B) 16, 4
(C) 4, 16
(D) None of the above
Ans: D
66. Distribution strategy of a company will be influenced by
(A) Nature of product
(B) Target segment of consumers
(C) Pricing policy
(D) All of the above
Ans: D
67. Which of the following is an example for unsystematic risk?
(A) Interest rate risk
(B) Exchange rate risk
(C) International risk
(D) Operating risk
Ans: D
68. Match the following:
List – A List – B
(i) Job Analysis (a) Grading jobs according to scale of pay
(ii) Job Description (b) A statement of human qualities to fill the job
(iii) Job Specification (c) A process of obtaining job facts
(iv) Job Classification (d) A statement of duties and responsibilities of a job
Codes:
(i) (ii) (iii) (iv)
(A) (c) (d) (b) (a)
(B) (c) (d) (a) (b)
(C) (a) (b) (c) (d)
(D) (b) (c) (d) (a)
Ans: A
69. A positioning strategy should include the following strategies except
(A) Product strategy
(B) Personnel strategy
(C) Promotion strategy
(D) Advertising strategy
Ans: B
70. Which among the following will suit the best as location for a chemical plant?
(A) Desert Area
(B) Coastal Area
(C) Plains
(D) Hill Area
Ans: B
71. When making purchase decisions the main consideration involved in organizational buying is
(A) Product quality
(B) Price
(C) Service
(D) All the above
Ans: D
72. Which of the following is to be considered by an investor while exercising the option?
(A) Exercise price
(B) Spot price
(C) Exercise price and spot price
(D) None of the above
Ans: C
73. Match the following:
List – A List – B
(i) Indian Trade Union Act (a) 1923
(ii) Industrial Dispute Act (b) 1926
(iii) The Workmen’s Compensation Act (c) 1948
(iv) The Employees’ State Insurance Act (d) 1947
Codes:
(i) (ii) (iii) (iv)
(A) (b) (d) (a) (c)
(B) (b) (c) (d) (a)
(C) (b) (d) (c) (a)
(D) (a) (c) (b) (d)
Ans: A
74. Who creates and implements strategic change in an organization?
(A) Directors
(B) Consultants
(C) H. R. Managers
(D) Strategist
Ans: D
75. Which of the variables is not used by marketers for demographic segmentation?
(A) Age
(B) Income
(C) Gender
(D) Poverty
Ans: D
76. Which one of the following is not the major objective of International Monetary Fund?
(A) Promoting co-operation among countries on international monetary issues.
(B) Giving loans to countries for the purpose of economic development.
(C) Promoting stability in the exchange rates.
(D) Promoting free mobility of capital across countries.
Ans: B
77. Match the correct combination for Assertion and Reason as argued by Shapiro and Titman:
Assertion (A): Management decisions to insure or hedge asset appear at best neutral mutation.
Reason (R): The price of systematic risk is identical for all the participants in the financial market.
(A) Assertion (A) is correct, but Reason (R) is incorrect.
(B) Assertion (A) is incorrect, but Reason (R) is correct.
(C) Both the Assertion (A) and the Reason (R) are incorrect.
(D) Both the Assertion (A) and the Reason (R) are correct.
Ans: D
78. Conservative policy of working capital refers to
i. Situation with high investment in current assets
ii. Situation which stimulates sales
iii. Situation with frequent production stoppages
Codes:
(A) iii is correct.
(B) ii is correct.
(C) i is correct.
(D) i and ii are correct.
Ans: D
79. DUPONT analysis refers to
(A) Earning Per Share = (Net Profit / Number of Equity Shares)
(B) Return on Assets = (Net Profit Margin) / (Total Assets Turnover Ratio)
(C) Total Assets Turnover Ratio = (Sales Average) / (Total Assets)
(D) None of the above
Ans: B
80. Match the following and indicate the correct code:
a. Mergers resulting into economies achieved primarily by eliminating the duplicate facilities i. Conglomerate Merger
b. Mergers resulting into expansion of company’s business towards ultimate consumer or source of rawmaterial ii. Horizontal Merger
c. Mergers in unrelated line of business iii. Vertical Merger
Codes:
a b c
(A) i ii iii
(B) ii iii i
(C) iii i ii
(D) iii ii i
Ans: B
81. Consider the following statements:
1. Usually people from the same culture, social class and occupation have the same life style.
2. The consumer buying decision will involve the same stages regardless of whether the goods involved are low or high involvement.
3. “Salesmen are born, not made.”
4. The ultimate goal of a customer-oriented organization is to maximize its customer’s satisfaction.
Indicate the correct answer through the codes.
Codes:
(A) All the statements are true.
(B) Statements 1 and 2 are false, others are true.
(C) Statement 3 is true, others are false.
(D) All are false.
Ans: D
82. Cognitive dissonance is associated with which stage of the consumer buying decision process?
(A) Need recognition
(B) Information search
(C) Evaluation of alternative
(D) None of the above
Ans: D
83. Consider the following statements:
i. Brand equity is a function of brand awareness and brand preference.
ii. Product lines tend to shorten over time.
iii. The Standards of Weights and Measures (Packaged Commodities) Rules, 1977 provide for the labelling rules relating to packaged commodities.
iv. AIDA Model is relevant to advertising as well as physical distribution.
Indicate the correct answer.
Codes:
(A) All the above statements are false.
(B) Only iii is true.
(C) i, iii and iv are true.
(D) Only i is true.
Ans: B
84. A marketer developing a brand name that is easy to pronounce would conduct:
(A) An association test
(B) A memory test
(C) A preference test
(D) A recall test
Ans: D
85. Before performing the business analysis for developing a new product, a company should beengaged in
(A) Idea screening
(B) Product development
(C) Marketing strategy development
(D) Product positioning
Ans: C
86. Relationship marketing aims at building mutually satisfying long term relations with
(A) Customers
(B) Employees
(C) Marketing partners
(D) All of the above
Ans: D
87. In the social-cultural arena, marketers may not understand
(A) People’s views
(B) Organisation’s views
(C) Society’s views
(D) Government’s views
Ans: D
88. Which of the following transactions reflect economic exposure but not transaction exposure?(A) A firm’s imports/exports denominated in local currency.
(B) A firm’s imports/exports denominated in foreign currency.
(C) Interest received from foreign investments.
(D) Interest owed on foreign funds borrowed.
Ans: A
89. Which of the following is/are a type(s) of direct marketing?
(A) Direct-Response Advertising
(B) Personal Selling
(C) Telemarketing
(D) All of the above
Ans: D
90. In inventory control, which one of the following factors does not affect the ROL (Re-Order-Level)?
(A) Average Daily Usage
(B) Lead Time
(C) Safety Stock
(D) Holding Costs
Ans: D
91. The number of allocated cells in the optimal solution of a transportation problem having m rows and n columns is:
(A) m + n – 1
(B) m + n – 1 or less
(C) m + n + 1
(D) None of the above
Ans: B
92. In a railway yard, goods trains arrive at a rate of 30 trains per day. Assume that the inter-arrival time follows an exponential distribution and the service distribution is also an exponential with an average of 36 minutes. The probability that the size of the queue exceeds 10 is
(A) 0.944
(B) 0.750
(C) 0.250
(D) 0.056
Ans: D
93. If in the optimal solution of a linear programming problem, a non-basic variable has zero value in the Cj – Zj row, the problem
(A) Has no feasible solution
(B) Has multiple optimal solutions
(C) is unbounded
(D) (A) and (B), but not (C)
Ans: B
94. The best model to compute the probability that a machine functioning well in one period will continue to function or will break down in the next period is
(A) Delphi Model
(B) Decision-tree Model
(C) Multiplicative Model
(D) Markov-Process Model
Ans: D
95. Statement – I: X and R charts use the sample standard deviation to measure process variability.
Statement – II: The lower control limit on an R chart is always R – (1 – 3d3/d2).
Codes:
(A) Both Statements I and II are correct.
(B) Statement I is correct, but II is wrong.
(C) Statement I is wrong, but II is correct.
(D) Both Statements I and II arewrong.
Ans: D
96. Read the following statements and indicate the correct code from given below:
Statement I: A subjective probability may be nothing more than an educated guess.
Statement II: One reason that decision-makers at high levels often use subjective probabilities is that they are concerned with unique situations.
Codes:
(A) Statement I is correct, but Statement II is wrong.
(B) Statement I is wrong, but Statement II is correct.
(C) Both Statements I and II are correct.
(D) Both Statements I and II are wrong.
Ans: C
97. Which of the following is a step in performing analysis of variance?
i. Determine an estimate of population variance from within samples.
ii. Determine an estimate of population variance from among the sample means.
iii. Determine the difference between expected and observed frequency for each class.
Codes:
(A) i and ii only.
(B) i and iii only.
(C) ii and iii only.
(D) i, ii and iii
Ans: A
98. From the following, identify the decision-support systems:
i. Status inquiry system
ii. Data analysis system
iii. Accounting system
iv. Information system
Codes:
(A) i, ii and iii
(B) ii, iii and iv
(C) only iii
(D) i, ii, iii and iv
Ans: D
99. Which of the following are the components of data warehouses?
i. Metadata
ii. Integration Programs
iii. Summarised data
iv. Archives
Codes:
(A) i, ii and iii only
(B) i, iii and iv only
(C) ii, iii and iv only
(D) i, ii, iii and iv
Ans: D
100. Which of the following is the rate at which a banker is willing to buy foreign currency?
(A) Ask rate
(B) Offer rate
(C) Bid rate
(D) Spread rate
Ans: C
(A) Time wage system
(B) Piece wage system
(C) Incentive wage system
(D) None of the above
Ans: C
52. Financial risk arises from
(A) R & D and operations stages of value chain
(B) GNP growth rate and competitive environment
(C) Volatility of interest rates, currency rates, commodities prices and stock prices
(D) Changes in laws and regulations
Ans: C
53. A company using high price and high promotion policy is adopting the following strategy:
(A) Slow skimming
(B) Rapid Penetration
(C) Slow Penetration
(D) Rapid Skimming
Ans: D
54. Which one of the following are the functions of personnel management?
(A) Planning, Organising, Staffing, Directing and Controlling
(B) Planning, Organising, Coordinating, Budgeting and Controlling
(C) Procurement, Development, Compensation, Integration and Maintenance
(D) Perception, Development, Learning, Organisation and Behaviour
Ans: C
55. Match the following:
(i) Net present value method I. Inflow after interest and tax
(ii) Average rate of return II. Discounted cash flow
(iii) Internal rate of return III. Traditional method
(iv) Pay back method IV. Decision based on cut-off rate
Codes:
(i) (ii) (iii) (iv)
(A) IV I II III
(B) IV III II I
(C) II I IV III
(D) I III IV II
Ans: C
56. The number of product lines a company carries is called
(A) Product range
(B) Product mix depth
(C) Product mix width
(D) Product line length
Ans: C
57. Entrepreneurial failures can be attributed to:
(A) Low quality raw materials
(B) Labour problems
(C) High overhead costs
(D) All of the above
Ans: D
58. What are the economic goals that guide the strategic direction of every viable business organization?
(A) Goal, profit and public image
(B) Public image, growth and profit
(C) Survival, growth and profitability
(D) Growth, profitability and public image
Ans: C
59. Match the following:
(i) Sensitivity training (a) Leadership
(ii) Hygiene factors (b) Organisational Development
(iii) Number of subordinates (c) Motivation
(iv) Likert’s management system (d) Span of management
Codes:
(i) (ii) (iii) (iv)
(A) (b) (c) (d) (a)
(B) (a) (c) (d) (b)
(C) (d) (c) (a) (b)
(D) (a) (b) (c) (d)
Ans: A
60. If the intrinsic value of the share is greater than market value, such shares are:
(A) Under valued
(B) Over valued
(C) Neutral
(D) None of the above
Ans: A
61. Which of the following is not a market oriented pricing technique?
(A) Penetration pricing
(B) Going rate pricing
(C) Perceived value pricing
(D) Early-cash recovery pricing
Ans: D
62. Which one of the following facilitates E-Commerce?
(A) Public relations
(B) Direct marketing
(C) Personal selling
(D) Product quality
Ans: B
63. Sensitivity analysis may be used in
(A) Linear programming
(B) Transportation programming
(C) PERT
(D) CPM
Ans: A
64. Sensitivity training method is a part of
(A) On-the-job training method
(B) Off-the-job training method
(C) Vestibule training method
(D) None of the above
Ans: C
65. A machine on the average produces 5% defective items. What are the mean and variance in a set of 32 items?
(A) 16, 8
(B) 16, 4
(C) 4, 16
(D) None of the above
Ans: D
66. Distribution strategy of a company will be influenced by
(A) Nature of product
(B) Target segment of consumers
(C) Pricing policy
(D) All of the above
Ans: D
67. Which of the following is an example for unsystematic risk?
(A) Interest rate risk
(B) Exchange rate risk
(C) International risk
(D) Operating risk
Ans: D
68. Match the following:
List – A List – B
(i) Job Analysis (a) Grading jobs according to scale of pay
(ii) Job Description (b) A statement of human qualities to fill the job
(iii) Job Specification (c) A process of obtaining job facts
(iv) Job Classification (d) A statement of duties and responsibilities of a job
Codes:
(i) (ii) (iii) (iv)
(A) (c) (d) (b) (a)
(B) (c) (d) (a) (b)
(C) (a) (b) (c) (d)
(D) (b) (c) (d) (a)
Ans: A
69. A positioning strategy should include the following strategies except
(A) Product strategy
(B) Personnel strategy
(C) Promotion strategy
(D) Advertising strategy
Ans: B
70. Which among the following will suit the best as location for a chemical plant?
(A) Desert Area
(B) Coastal Area
(C) Plains
(D) Hill Area
Ans: B
71. When making purchase decisions the main consideration involved in organizational buying is
(A) Product quality
(B) Price
(C) Service
(D) All the above
Ans: D
72. Which of the following is to be considered by an investor while exercising the option?
(A) Exercise price
(B) Spot price
(C) Exercise price and spot price
(D) None of the above
Ans: C
73. Match the following:
List – A List – B
(i) Indian Trade Union Act (a) 1923
(ii) Industrial Dispute Act (b) 1926
(iii) The Workmen’s Compensation Act (c) 1948
(iv) The Employees’ State Insurance Act (d) 1947
Codes:
(i) (ii) (iii) (iv)
(A) (b) (d) (a) (c)
(B) (b) (c) (d) (a)
(C) (b) (d) (c) (a)
(D) (a) (c) (b) (d)
Ans: A
74. Who creates and implements strategic change in an organization?
(A) Directors
(B) Consultants
(C) H. R. Managers
(D) Strategist
Ans: D
75. Which of the variables is not used by marketers for demographic segmentation?
(A) Age
(B) Income
(C) Gender
(D) Poverty
Ans: D
76. Which one of the following is not the major objective of International Monetary Fund?
(A) Promoting co-operation among countries on international monetary issues.
(B) Giving loans to countries for the purpose of economic development.
(C) Promoting stability in the exchange rates.
(D) Promoting free mobility of capital across countries.
Ans: B
77. Match the correct combination for Assertion and Reason as argued by Shapiro and Titman:
Assertion (A): Management decisions to insure or hedge asset appear at best neutral mutation.
Reason (R): The price of systematic risk is identical for all the participants in the financial market.
(A) Assertion (A) is correct, but Reason (R) is incorrect.
(B) Assertion (A) is incorrect, but Reason (R) is correct.
(C) Both the Assertion (A) and the Reason (R) are incorrect.
(D) Both the Assertion (A) and the Reason (R) are correct.
Ans: D
78. Conservative policy of working capital refers to
i. Situation with high investment in current assets
ii. Situation which stimulates sales
iii. Situation with frequent production stoppages
Codes:
(A) iii is correct.
(B) ii is correct.
(C) i is correct.
(D) i and ii are correct.
Ans: D
79. DUPONT analysis refers to
(A) Earning Per Share = (Net Profit / Number of Equity Shares)
(B) Return on Assets = (Net Profit Margin) / (Total Assets Turnover Ratio)
(C) Total Assets Turnover Ratio = (Sales Average) / (Total Assets)
(D) None of the above
Ans: B
80. Match the following and indicate the correct code:
a. Mergers resulting into economies achieved primarily by eliminating the duplicate facilities i. Conglomerate Merger
b. Mergers resulting into expansion of company’s business towards ultimate consumer or source of rawmaterial ii. Horizontal Merger
c. Mergers in unrelated line of business iii. Vertical Merger
Codes:
a b c
(A) i ii iii
(B) ii iii i
(C) iii i ii
(D) iii ii i
Ans: B
81. Consider the following statements:
1. Usually people from the same culture, social class and occupation have the same life style.
2. The consumer buying decision will involve the same stages regardless of whether the goods involved are low or high involvement.
3. “Salesmen are born, not made.”
4. The ultimate goal of a customer-oriented organization is to maximize its customer’s satisfaction.
Indicate the correct answer through the codes.
Codes:
(A) All the statements are true.
(B) Statements 1 and 2 are false, others are true.
(C) Statement 3 is true, others are false.
(D) All are false.
Ans: D
82. Cognitive dissonance is associated with which stage of the consumer buying decision process?
(A) Need recognition
(B) Information search
(C) Evaluation of alternative
(D) None of the above
Ans: D
83. Consider the following statements:
i. Brand equity is a function of brand awareness and brand preference.
ii. Product lines tend to shorten over time.
iii. The Standards of Weights and Measures (Packaged Commodities) Rules, 1977 provide for the labelling rules relating to packaged commodities.
iv. AIDA Model is relevant to advertising as well as physical distribution.
Indicate the correct answer.
Codes:
(A) All the above statements are false.
(B) Only iii is true.
(C) i, iii and iv are true.
(D) Only i is true.
Ans: B
84. A marketer developing a brand name that is easy to pronounce would conduct:
(A) An association test
(B) A memory test
(C) A preference test
(D) A recall test
Ans: D
85. Before performing the business analysis for developing a new product, a company should beengaged in
(A) Idea screening
(B) Product development
(C) Marketing strategy development
(D) Product positioning
Ans: C
86. Relationship marketing aims at building mutually satisfying long term relations with
(A) Customers
(B) Employees
(C) Marketing partners
(D) All of the above
Ans: D
87. In the social-cultural arena, marketers may not understand
(A) People’s views
(B) Organisation’s views
(C) Society’s views
(D) Government’s views
Ans: D
88. Which of the following transactions reflect economic exposure but not transaction exposure?(A) A firm’s imports/exports denominated in local currency.
(B) A firm’s imports/exports denominated in foreign currency.
(C) Interest received from foreign investments.
(D) Interest owed on foreign funds borrowed.
Ans: A
89. Which of the following is/are a type(s) of direct marketing?
(A) Direct-Response Advertising
(B) Personal Selling
(C) Telemarketing
(D) All of the above
Ans: D
90. In inventory control, which one of the following factors does not affect the ROL (Re-Order-Level)?
(A) Average Daily Usage
(B) Lead Time
(C) Safety Stock
(D) Holding Costs
Ans: D
91. The number of allocated cells in the optimal solution of a transportation problem having m rows and n columns is:
(A) m + n – 1
(B) m + n – 1 or less
(C) m + n + 1
(D) None of the above
Ans: B
92. In a railway yard, goods trains arrive at a rate of 30 trains per day. Assume that the inter-arrival time follows an exponential distribution and the service distribution is also an exponential with an average of 36 minutes. The probability that the size of the queue exceeds 10 is
(A) 0.944
(B) 0.750
(C) 0.250
(D) 0.056
Ans: D
93. If in the optimal solution of a linear programming problem, a non-basic variable has zero value in the Cj – Zj row, the problem
(A) Has no feasible solution
(B) Has multiple optimal solutions
(C) is unbounded
(D) (A) and (B), but not (C)
Ans: B
94. The best model to compute the probability that a machine functioning well in one period will continue to function or will break down in the next period is
(A) Delphi Model
(B) Decision-tree Model
(C) Multiplicative Model
(D) Markov-Process Model
Ans: D
95. Statement – I: X and R charts use the sample standard deviation to measure process variability.
Statement – II: The lower control limit on an R chart is always R – (1 – 3d3/d2).
Codes:
(A) Both Statements I and II are correct.
(B) Statement I is correct, but II is wrong.
(C) Statement I is wrong, but II is correct.
(D) Both Statements I and II arewrong.
Ans: D
96. Read the following statements and indicate the correct code from given below:
Statement I: A subjective probability may be nothing more than an educated guess.
Statement II: One reason that decision-makers at high levels often use subjective probabilities is that they are concerned with unique situations.
Codes:
(A) Statement I is correct, but Statement II is wrong.
(B) Statement I is wrong, but Statement II is correct.
(C) Both Statements I and II are correct.
(D) Both Statements I and II are wrong.
Ans: C
97. Which of the following is a step in performing analysis of variance?
i. Determine an estimate of population variance from within samples.
ii. Determine an estimate of population variance from among the sample means.
iii. Determine the difference between expected and observed frequency for each class.
Codes:
(A) i and ii only.
(B) i and iii only.
(C) ii and iii only.
(D) i, ii and iii
Ans: A
98. From the following, identify the decision-support systems:
i. Status inquiry system
ii. Data analysis system
iii. Accounting system
iv. Information system
Codes:
(A) i, ii and iii
(B) ii, iii and iv
(C) only iii
(D) i, ii, iii and iv
Ans: D
99. Which of the following are the components of data warehouses?
i. Metadata
ii. Integration Programs
iii. Summarised data
iv. Archives
Codes:
(A) i, ii and iii only
(B) i, iii and iv only
(C) ii, iii and iv only
(D) i, ii, iii and iv
Ans: D
100. Which of the following is the rate at which a banker is willing to buy foreign currency?
(A) Ask rate
(B) Offer rate
(C) Bid rate
(D) Spread rate
Ans: C