MANAGEMENT- PAGE 5
MANAGEMENT MCQs
1. Cardinal measure of utility is required in
(A) Utility Theory
(B) Indifference Curve Analysis
(C) Revealed Preference
(D) Inferior Goods
Ans: A
2. A Right-ward shift in Demand Curve indicates
(A) A decrease in supply
(B) An increase in quantity supplied
(C) An increase in supply over the previous year
(D) Law of Variable Proportions
Ans: C
3. Which of the following is the condition for equilibrium for Monopolist?
(A) MR = MC
(B) MC = AR
(C) MR = MC = Price
(D) AC = AR
Ans: A
4. Giffen goods are those goods
(A) For which demand increases as price decreases
(B) Which is in short supply?
(C) Which have high elasticity of demand?
(D) Which gives rise to a Cob-Web situation?
Ans: A
5. Match List-I with List-II and select the correct answer using the codes given below the lists.
List – I List – II
(Demand Estimation Method) (Steps involved)
(a) Customer Interview Method 1. Consumers Interview
(b) Market Experiment Method 2. Time series or Cross Section Data
(c) Regression Method 3. Market Stimulation
(d) Demand Forecasts 4. Market Experiments’ Survey
Codes:
(a) (b) (c) (d)
(A) 1 3 4 2
(B) 1 3 2 4
(C) 2 4 3 1
(D) 4 2 1 3
Ans: B
6. Who divided all activities of the organisations into six groups; Technical, Commercial, Financial, Security, Accounting and Managerial?
(A) Peter Drucker
(B) D. E. McForland
(C) Henry Fayol
(D) George R. Terry
Ans: C
7. What are the elements that a Mission Statement of an Organisation should include?
(A) Self guidelines for Business Operations
(B) Identifies the reasons for existence of a company and its responsibilities to the stakeholders.
(C) Identifies the firms’ customers and their needs and matches them to the products and services.
(D) All of the above (A), (B) and (C).
Ans: B
8. Changes in population characteristics such as age, gender, race, marital status, income and education are examples of change:
(A) Demographic
(B) Cultural
(C) Geographic
(D) Diversity
Ans: A
9. Which of the following is not included as Micro-Environmental Variables?
(A) Prevailing economic and political conditions.
(B) Emerging new technologies
(C) Financial conditions and culture
(D) None of the above
Ans: D
10. During his days at Midvale Steel Company F.W. Taylor saw that employees soldiering – deliberately working at a pace slower than their capabilities. He identified that, worker indulge in soldiering primarily for the following reasons:
(A) Fear of losing jobs if they increase their output.
(B) Faulty wage systems.
(C) Out-dated methods of working
(D) All of the above
Ans: D
11. Among the best known trait approaches to personality measurement – column A gives Traits and column B states the name of authority defining them. Match the correct combination
Traits Author
(A) 20 + needs Murray
(B) 16 traits Eysenck
(C) 3 traits Cattell
(D) 5 traits Costa & Merree
Ans: A
12. “Third Party intervention” as “Conflict Resolution” is
(A) Often required
(B) Seldom required
(C) Required as a mandate, when conflict remains unresolved
(D) Not at all considered as an option
Ans: C
13. The policy of introducing “New Blood” is
(A) Stereotypic
(B) Bureaucratic as well as redtapic
(C) Innovative and challenging, making the corporate dynamic
(D) Innovative, challenging, but often resisted
Ans: D
14. An “Assessment Centre” is
(A) A place
(B) A technique
(C) Both (A) and (B)
(D) None of the above
Ans: B
15. “Organizational learning” and “Learning organization” are
(A) Same
(B) Different
(C) Reverse to each other
(D) Complementary to each other
Ans: A
16. The value of the firm is maximized when the
(A) Market price of equity share is maximum
(B) Market price of equity share is minimum
(C) Market value of debt is maximum
(D) None of the above
Ans: A
17. Which of the following is the main assumption of Waltar Valuation Model?
(A) All financing is done through Retained earnings and external sources of funds.
(B) With additional investment the firm’s business risk will change.
(C) There is a change in the key variables such as EPS and DPS
(D) None of the above
Ans: A
18. Which of the following is an important money market instrument?
(A) Debentures
(B) Commercial Paper
(C) Public Deposits
(D) None of the above
Ans: B
19. The method of payment in Mergers and Acquisitions may include
(i) Cash
(ii) Loan stock
(iii) Ordinary shares
(iv) Convertible loan stock
(A) (i) & (iii) only
(B) (i) & (ii) only
(C) (i), (ii), (iii) and (iv)
(D) (ii) & (iv) only
Ans: C
20. Working capital refers to the capital mobilised for meeting
(A) Long-term financial needs of the company
(B) To meet day-to-day financial obligations of the company
(C) To meet the future financial requirements of the company
(D) None of the above
Ans: B
21. Which of the following statement is true?
(A) The essence of marketing is a transaction of an exchange.
(B) Marketing–orientation is philosophy, which has to pervade the organization structure
(C) Marketing is also a managerial function involving analysis, planning and control marketing activities in an organisation
(D) All of the above
Ans: D
22. A marketing plan is composed of three basic components, namely
1. Objectives
2. Policies
3. Program
4. Procedure
5. Hints
6. Decision
7. Command
8. Periodic
9. Diversity
(A) 1, 2 and 3 only
(B) 6, 7 and 8 only
(C) 5, 7 and 9 only
(D) 2, 3 and 9 only
Ans: A
23. Which of the following is not the stage of new product development?
(A) Idea Generation
(B) Business Analysis
(C) Test Marketing
(D) Market Segmentation
Ans: D
24. Marketing research does not normally
(A) Gather environmental information
(B) Provide a continuous source of information
(C) Relate to all aspects of marketing operations
(D) Describe the current situation
Ans: B
25. Which of the following is not included in 7 P’s of services marketing?
(A) Physical evidence
(B) People
(C) Process
(D) Marketing plan
Ans: D
26. This cost arises out of the failure of the customers to meet their obligations when payment on credit sales becomes due after the expiry of the credit period.
(A) Default Cost
(B) Delinquency Cost
(C) Capital Cost
(D) Collection Cost
Ans: B
27. The following data are available from the annual report of a company : Current Assets Rs. 4,80,000; Current Liabilities Rs. 3,00,000; Average total assets Rs. 20,00,000; Operating income Rs. 2,40,000; Average total equity Rs. 8,00,000; Net income Rs. 80,000.
Which of the following statement is correct?
(A) Return on equity exceeds the return on assets.
(B) Working capital is Rs. 12, 00,000.
(C) Current Ratio is 0.625 to 1.
(D) None of the above.
Ans: D
28. The annual credit sales of a firm is Rs. 12, 80,000 and the debtors amount to Rs. 1, 60,000. The debtors turnover and average collection period are _____.
(A) 4 & 90 days
(B) 8 & 45 days
(C) 6 & 60 days
(D) 8 & 60 days
Ans: B
29. The formula used for valuation of equity shares with assumption of normal growth in dividend is
(A) D0 / (Ke – g)
(B) D1 / (Ke – g)
(C) E0 / (Ke – g)
(D)E1 / (Ke – g)
Ans: B
30. Match the following:
List – I (Statement) List – II (Term)
I. A combination of two puts and one call with the same exercise price and expiration date. 1. Strap
II. A combination of one put and two calls with the same exercise price and expiration date. 2. Strip
III. A portfolio of put and call with the same expiration date but with different exercise price. 3. Strangle
IV. A position where the option writer does not hold a share in his portfolio that has a counter balancing effect 4. Naked option
Codes:
I II III IV
(A) 2 1 3 4
(B) 1 2 3 4
(C) 2 1 4 3
(D) 1 3 2 4
Ans: A
31. “Motivational research is a form of market research that attempts to discover the deeper reasons why people buy.” Who said it?
(A) Manson and Rath
(B) Stanton
(C) Still and Scweff
(D) Philip Kotler
Ans: A
32. In multi-level channel arrangement Jobber stands in between ________.
(A) Manufacturer and wholesaler
(B) Wholesaler and retailer
(C) Retailer and consumer
(D) None of these
Ans: B
33. A company following a strategy of advertising the product for a period followed by a period with no advertising is called
(A) Concentration
(B) Flighting
(C) Pulsing
(D) Continuity
Ans: B
34. Franchise organisation is an example of ______ vertical marketing system.
(A) Corporate
(B) Administered
(C) Contractual
(D) Co-operative
Ans: C
35. Three statements are given below:
Statement – I: Introducing an existing product in the new market is called market development.
Statement – II: Introducing a new product in the existing market is called diversification.
Statement – III: Introducing an existing product in the existing market is called market penetration.
Choose the correct option about the statements from among the options given below:
(A) Statements I & II are only correct.
(B) Statements I & III are only correct.
(C) Statements II & III are only correct.
(D) Statements I, II & III are correct.
Ans: B
36. Two statements are given below relating to sales promotion:
Statement – I: Sweep Stakes calls for consumers to submit an entry to be examined by a panel of judges who will select the best entry.
Statement – II: A contest asks consumers to submit their names in a drawing.
Choose the most appropriate answer from among the options given relating to the statements:
(A) Statement – I is correct and II is wrong.
(B) Statement – II is correct and I is wrong.
(C) Both statements are wrong.
(D) Both statements are correct.
Ans: C
37. Arrange the following steps in the perceptional process in the sequential order:
1. Interpretation
2. Memory
3. Exposure
4. Attention
(A) 4, 3, 1, 2
(B) 3, 2, 1, 4
(C) 3, 4, 1, 2
(D) 4, 3, 2, 1
Ans: C
38. Match the following:
List – I List – II
(Motivational Models) (Elements)
1. Economic Model a. Attractive Design
2. Learning Model b. Inspiration
3. Psychoanalytic Model c. Sex
4. Organisational Model d. Cost of Product
Codes:
1 2 3 4
(A) a b c d
(B) b c d a
(C) c d a b
(D) b d c a
Ans: D
39. Match Item – I with Item – II:
Item – I Item – II
(Type of Control) (Prime Responsibility)
I. Annual Plan Control 1. Line and Staff Management or Marketing Controller
II. Profitability Control 2. Top/Middle Management
III. Efficiency Control 3. Marketing Controller
IV. Strategic Control 4. Top Management/ Marketing Auditor
Codes:
I II III IV
(A) 2 3 1 4
(B) 1 3 2 4
(C) 2 1 4 3
(D) 2 3 4 1
Ans: A
40. Which of the following statement is true?
(A) A brand name is a part of brand which can be vocalized.
(B) A brand is usually composed of a name and mark of a product.
(C) Brand means a name, term and symbol or a mix thereof used to identify the product of a firm and to distinguish.
(D) All of the above
Ans: D
41. The term inventory includes
(A) The stock of raw materials only.
(B) The stock of finished goods only.
(C) The stock of raw materials and goods required for production in a factory or finished goods for sales.
(D) None of the above.
Ans: C
42. Statement – I: Operations research seeks to replace intuitive decision making for large complex problems with an approach that identifies the optimal or best alternative through analysis.
Statement – II: Operations Managers have adopted the approaches and techniques of operations research to improve their decision-making.
(A) Both statements I & II are true.
(B) Both statements I & II are false.
(C) Statement I is true but statement II is false.
(D) Statement II is true but statement I is false.
Ans: A
43. ________ is used for analyzing capacity planning decisions.
(A) Break-even Analysis
(B) Present-value Analysis
(C) Simulation and Waiting Line Analysis
(D) All the above
Ans: D
44. Match the following:
List – I List – II
a. To co-ordinate work centre schedules by showing the progress of each job i. EOQ
b. The goal of continuous improvement in every phase of manufacturing ii. Queue length
c. Optimal quantity asked to supply that minimizes total annual stocking costs iii. Gantt chart
d. End product or service of a conversion system iv. Kaizen
e. The number of arrivals waiting to be serviced v. Output
Codes:
a b c d e
(A) iii iv i v ii
(B) i ii iii iv v
(C) v iv ii iii i
(D) ii iii iv i v
Ans: A
45. Match the following:
List – I List – II
a. Any physically identifiable part of a project i. Network
b. The terminal point of an activity ii. Event
c. The longest chain in the Network iii. Activity
d. Logically and sequentially connected arrows and nodes iv. Critical path
Codes:
a b c d
(A) i ii iii iv
(B) iii ii iv i
(C) ii iv i iii
(D) iv i ii iii
Ans: B
46. For nominal data, the only measure of central tendency that can be applied is
(A) Arithmetic mean
(B) Harmonic mean
(C) Median
(D) Mode
Ans: D
47. Tukey Kramer Test is applied when
(A) There is significant difference between means of two groups.
(B) There is significant difference between means of three groups.
(C) There is no significant difference between means of two groups.
(D) There is no significant difference between the means of three groups.
Ans: B
48. The steps taken to solve a problem are given below. Arrange them in the correct order:
(i) Analyze
(ii) Test
(iii) Implement
(iv) Evaluate
(v) Document
(vi) Design
(vii) Develop
Codes:
(A) (i), (vi), (vii), (ii), (v), (iii), (iv)
(B) (i), (ii), (iii), (iv), (v), (vi), (vii)
(C) (i), (vi), (iii), (ii), (iv), (v), (vii)
(D) (i), (vi), (vii), (iii), (ii), (iv), (v)
Ans: A
49. Arrange the steps given below in the proper order in the process of selection of samples:
(i) Determining sample size
(ii) Specifying sampling method
(iii) Selecting samples
(iv) Defining the population
(v) Developing sample frame
Codes:
(A) (iv), (i), (v), (ii), (iii)
(B) (iv), (v), (ii), (i), (iii)
(C) (iv), (v), (i), (ii), (iii)
(D) (iv), (i), (v), (iii), (ii)
Ans: C
50. Match the following:
Column – A Column – B
a. Device that connects two dissimilar communication networks. i. Modem
b. Device that connects two similar networks. ii. Repeater
c. Device used to boost the strength of a signal. iii. Bridge
d. Device for performing signal transformation between terminal devices and communication circuits. iv. Gateway
Codes:
a b c d
(A) iii iv ii i
(B) iv iii ii i
(C) ii iii iv i
(D) iv iii i ii
Ans: B
(A) Utility Theory
(B) Indifference Curve Analysis
(C) Revealed Preference
(D) Inferior Goods
Ans: A
2. A Right-ward shift in Demand Curve indicates
(A) A decrease in supply
(B) An increase in quantity supplied
(C) An increase in supply over the previous year
(D) Law of Variable Proportions
Ans: C
3. Which of the following is the condition for equilibrium for Monopolist?
(A) MR = MC
(B) MC = AR
(C) MR = MC = Price
(D) AC = AR
Ans: A
4. Giffen goods are those goods
(A) For which demand increases as price decreases
(B) Which is in short supply?
(C) Which have high elasticity of demand?
(D) Which gives rise to a Cob-Web situation?
Ans: A
5. Match List-I with List-II and select the correct answer using the codes given below the lists.
List – I List – II
(Demand Estimation Method) (Steps involved)
(a) Customer Interview Method 1. Consumers Interview
(b) Market Experiment Method 2. Time series or Cross Section Data
(c) Regression Method 3. Market Stimulation
(d) Demand Forecasts 4. Market Experiments’ Survey
Codes:
(a) (b) (c) (d)
(A) 1 3 4 2
(B) 1 3 2 4
(C) 2 4 3 1
(D) 4 2 1 3
Ans: B
6. Who divided all activities of the organisations into six groups; Technical, Commercial, Financial, Security, Accounting and Managerial?
(A) Peter Drucker
(B) D. E. McForland
(C) Henry Fayol
(D) George R. Terry
Ans: C
7. What are the elements that a Mission Statement of an Organisation should include?
(A) Self guidelines for Business Operations
(B) Identifies the reasons for existence of a company and its responsibilities to the stakeholders.
(C) Identifies the firms’ customers and their needs and matches them to the products and services.
(D) All of the above (A), (B) and (C).
Ans: B
8. Changes in population characteristics such as age, gender, race, marital status, income and education are examples of change:
(A) Demographic
(B) Cultural
(C) Geographic
(D) Diversity
Ans: A
9. Which of the following is not included as Micro-Environmental Variables?
(A) Prevailing economic and political conditions.
(B) Emerging new technologies
(C) Financial conditions and culture
(D) None of the above
Ans: D
10. During his days at Midvale Steel Company F.W. Taylor saw that employees soldiering – deliberately working at a pace slower than their capabilities. He identified that, worker indulge in soldiering primarily for the following reasons:
(A) Fear of losing jobs if they increase their output.
(B) Faulty wage systems.
(C) Out-dated methods of working
(D) All of the above
Ans: D
11. Among the best known trait approaches to personality measurement – column A gives Traits and column B states the name of authority defining them. Match the correct combination
Traits Author
(A) 20 + needs Murray
(B) 16 traits Eysenck
(C) 3 traits Cattell
(D) 5 traits Costa & Merree
Ans: A
12. “Third Party intervention” as “Conflict Resolution” is
(A) Often required
(B) Seldom required
(C) Required as a mandate, when conflict remains unresolved
(D) Not at all considered as an option
Ans: C
13. The policy of introducing “New Blood” is
(A) Stereotypic
(B) Bureaucratic as well as redtapic
(C) Innovative and challenging, making the corporate dynamic
(D) Innovative, challenging, but often resisted
Ans: D
14. An “Assessment Centre” is
(A) A place
(B) A technique
(C) Both (A) and (B)
(D) None of the above
Ans: B
15. “Organizational learning” and “Learning organization” are
(A) Same
(B) Different
(C) Reverse to each other
(D) Complementary to each other
Ans: A
16. The value of the firm is maximized when the
(A) Market price of equity share is maximum
(B) Market price of equity share is minimum
(C) Market value of debt is maximum
(D) None of the above
Ans: A
17. Which of the following is the main assumption of Waltar Valuation Model?
(A) All financing is done through Retained earnings and external sources of funds.
(B) With additional investment the firm’s business risk will change.
(C) There is a change in the key variables such as EPS and DPS
(D) None of the above
Ans: A
18. Which of the following is an important money market instrument?
(A) Debentures
(B) Commercial Paper
(C) Public Deposits
(D) None of the above
Ans: B
19. The method of payment in Mergers and Acquisitions may include
(i) Cash
(ii) Loan stock
(iii) Ordinary shares
(iv) Convertible loan stock
(A) (i) & (iii) only
(B) (i) & (ii) only
(C) (i), (ii), (iii) and (iv)
(D) (ii) & (iv) only
Ans: C
20. Working capital refers to the capital mobilised for meeting
(A) Long-term financial needs of the company
(B) To meet day-to-day financial obligations of the company
(C) To meet the future financial requirements of the company
(D) None of the above
Ans: B
21. Which of the following statement is true?
(A) The essence of marketing is a transaction of an exchange.
(B) Marketing–orientation is philosophy, which has to pervade the organization structure
(C) Marketing is also a managerial function involving analysis, planning and control marketing activities in an organisation
(D) All of the above
Ans: D
22. A marketing plan is composed of three basic components, namely
1. Objectives
2. Policies
3. Program
4. Procedure
5. Hints
6. Decision
7. Command
8. Periodic
9. Diversity
(A) 1, 2 and 3 only
(B) 6, 7 and 8 only
(C) 5, 7 and 9 only
(D) 2, 3 and 9 only
Ans: A
23. Which of the following is not the stage of new product development?
(A) Idea Generation
(B) Business Analysis
(C) Test Marketing
(D) Market Segmentation
Ans: D
24. Marketing research does not normally
(A) Gather environmental information
(B) Provide a continuous source of information
(C) Relate to all aspects of marketing operations
(D) Describe the current situation
Ans: B
25. Which of the following is not included in 7 P’s of services marketing?
(A) Physical evidence
(B) People
(C) Process
(D) Marketing plan
Ans: D
26. This cost arises out of the failure of the customers to meet their obligations when payment on credit sales becomes due after the expiry of the credit period.
(A) Default Cost
(B) Delinquency Cost
(C) Capital Cost
(D) Collection Cost
Ans: B
27. The following data are available from the annual report of a company : Current Assets Rs. 4,80,000; Current Liabilities Rs. 3,00,000; Average total assets Rs. 20,00,000; Operating income Rs. 2,40,000; Average total equity Rs. 8,00,000; Net income Rs. 80,000.
Which of the following statement is correct?
(A) Return on equity exceeds the return on assets.
(B) Working capital is Rs. 12, 00,000.
(C) Current Ratio is 0.625 to 1.
(D) None of the above.
Ans: D
28. The annual credit sales of a firm is Rs. 12, 80,000 and the debtors amount to Rs. 1, 60,000. The debtors turnover and average collection period are _____.
(A) 4 & 90 days
(B) 8 & 45 days
(C) 6 & 60 days
(D) 8 & 60 days
Ans: B
29. The formula used for valuation of equity shares with assumption of normal growth in dividend is
(A) D0 / (Ke – g)
(B) D1 / (Ke – g)
(C) E0 / (Ke – g)
(D)E1 / (Ke – g)
Ans: B
30. Match the following:
List – I (Statement) List – II (Term)
I. A combination of two puts and one call with the same exercise price and expiration date. 1. Strap
II. A combination of one put and two calls with the same exercise price and expiration date. 2. Strip
III. A portfolio of put and call with the same expiration date but with different exercise price. 3. Strangle
IV. A position where the option writer does not hold a share in his portfolio that has a counter balancing effect 4. Naked option
Codes:
I II III IV
(A) 2 1 3 4
(B) 1 2 3 4
(C) 2 1 4 3
(D) 1 3 2 4
Ans: A
31. “Motivational research is a form of market research that attempts to discover the deeper reasons why people buy.” Who said it?
(A) Manson and Rath
(B) Stanton
(C) Still and Scweff
(D) Philip Kotler
Ans: A
32. In multi-level channel arrangement Jobber stands in between ________.
(A) Manufacturer and wholesaler
(B) Wholesaler and retailer
(C) Retailer and consumer
(D) None of these
Ans: B
33. A company following a strategy of advertising the product for a period followed by a period with no advertising is called
(A) Concentration
(B) Flighting
(C) Pulsing
(D) Continuity
Ans: B
34. Franchise organisation is an example of ______ vertical marketing system.
(A) Corporate
(B) Administered
(C) Contractual
(D) Co-operative
Ans: C
35. Three statements are given below:
Statement – I: Introducing an existing product in the new market is called market development.
Statement – II: Introducing a new product in the existing market is called diversification.
Statement – III: Introducing an existing product in the existing market is called market penetration.
Choose the correct option about the statements from among the options given below:
(A) Statements I & II are only correct.
(B) Statements I & III are only correct.
(C) Statements II & III are only correct.
(D) Statements I, II & III are correct.
Ans: B
36. Two statements are given below relating to sales promotion:
Statement – I: Sweep Stakes calls for consumers to submit an entry to be examined by a panel of judges who will select the best entry.
Statement – II: A contest asks consumers to submit their names in a drawing.
Choose the most appropriate answer from among the options given relating to the statements:
(A) Statement – I is correct and II is wrong.
(B) Statement – II is correct and I is wrong.
(C) Both statements are wrong.
(D) Both statements are correct.
Ans: C
37. Arrange the following steps in the perceptional process in the sequential order:
1. Interpretation
2. Memory
3. Exposure
4. Attention
(A) 4, 3, 1, 2
(B) 3, 2, 1, 4
(C) 3, 4, 1, 2
(D) 4, 3, 2, 1
Ans: C
38. Match the following:
List – I List – II
(Motivational Models) (Elements)
1. Economic Model a. Attractive Design
2. Learning Model b. Inspiration
3. Psychoanalytic Model c. Sex
4. Organisational Model d. Cost of Product
Codes:
1 2 3 4
(A) a b c d
(B) b c d a
(C) c d a b
(D) b d c a
Ans: D
39. Match Item – I with Item – II:
Item – I Item – II
(Type of Control) (Prime Responsibility)
I. Annual Plan Control 1. Line and Staff Management or Marketing Controller
II. Profitability Control 2. Top/Middle Management
III. Efficiency Control 3. Marketing Controller
IV. Strategic Control 4. Top Management/ Marketing Auditor
Codes:
I II III IV
(A) 2 3 1 4
(B) 1 3 2 4
(C) 2 1 4 3
(D) 2 3 4 1
Ans: A
40. Which of the following statement is true?
(A) A brand name is a part of brand which can be vocalized.
(B) A brand is usually composed of a name and mark of a product.
(C) Brand means a name, term and symbol or a mix thereof used to identify the product of a firm and to distinguish.
(D) All of the above
Ans: D
41. The term inventory includes
(A) The stock of raw materials only.
(B) The stock of finished goods only.
(C) The stock of raw materials and goods required for production in a factory or finished goods for sales.
(D) None of the above.
Ans: C
42. Statement – I: Operations research seeks to replace intuitive decision making for large complex problems with an approach that identifies the optimal or best alternative through analysis.
Statement – II: Operations Managers have adopted the approaches and techniques of operations research to improve their decision-making.
(A) Both statements I & II are true.
(B) Both statements I & II are false.
(C) Statement I is true but statement II is false.
(D) Statement II is true but statement I is false.
Ans: A
43. ________ is used for analyzing capacity planning decisions.
(A) Break-even Analysis
(B) Present-value Analysis
(C) Simulation and Waiting Line Analysis
(D) All the above
Ans: D
44. Match the following:
List – I List – II
a. To co-ordinate work centre schedules by showing the progress of each job i. EOQ
b. The goal of continuous improvement in every phase of manufacturing ii. Queue length
c. Optimal quantity asked to supply that minimizes total annual stocking costs iii. Gantt chart
d. End product or service of a conversion system iv. Kaizen
e. The number of arrivals waiting to be serviced v. Output
Codes:
a b c d e
(A) iii iv i v ii
(B) i ii iii iv v
(C) v iv ii iii i
(D) ii iii iv i v
Ans: A
45. Match the following:
List – I List – II
a. Any physically identifiable part of a project i. Network
b. The terminal point of an activity ii. Event
c. The longest chain in the Network iii. Activity
d. Logically and sequentially connected arrows and nodes iv. Critical path
Codes:
a b c d
(A) i ii iii iv
(B) iii ii iv i
(C) ii iv i iii
(D) iv i ii iii
Ans: B
46. For nominal data, the only measure of central tendency that can be applied is
(A) Arithmetic mean
(B) Harmonic mean
(C) Median
(D) Mode
Ans: D
47. Tukey Kramer Test is applied when
(A) There is significant difference between means of two groups.
(B) There is significant difference between means of three groups.
(C) There is no significant difference between means of two groups.
(D) There is no significant difference between the means of three groups.
Ans: B
48. The steps taken to solve a problem are given below. Arrange them in the correct order:
(i) Analyze
(ii) Test
(iii) Implement
(iv) Evaluate
(v) Document
(vi) Design
(vii) Develop
Codes:
(A) (i), (vi), (vii), (ii), (v), (iii), (iv)
(B) (i), (ii), (iii), (iv), (v), (vi), (vii)
(C) (i), (vi), (iii), (ii), (iv), (v), (vii)
(D) (i), (vi), (vii), (iii), (ii), (iv), (v)
Ans: A
49. Arrange the steps given below in the proper order in the process of selection of samples:
(i) Determining sample size
(ii) Specifying sampling method
(iii) Selecting samples
(iv) Defining the population
(v) Developing sample frame
Codes:
(A) (iv), (i), (v), (ii), (iii)
(B) (iv), (v), (ii), (i), (iii)
(C) (iv), (v), (i), (ii), (iii)
(D) (iv), (i), (v), (iii), (ii)
Ans: C
50. Match the following:
Column – A Column – B
a. Device that connects two dissimilar communication networks. i. Modem
b. Device that connects two similar networks. ii. Repeater
c. Device used to boost the strength of a signal. iii. Bridge
d. Device for performing signal transformation between terminal devices and communication circuits. iv. Gateway
Codes:
a b c d
(A) iii iv ii i
(B) iv iii ii i
(C) ii iii iv i
(D) iv iii i ii
Ans: B
51. In reference Part-A and Part-B, which statement is correct?
Part ‘A’: Strategy is the action plan for achieving organisational objectives.
Part ‘B’: It is the bridge between the present and desired future.
Statement:
(A) Both Part ‘A’ and ‘B’ are correct.
(B) Both Part ‘A’ and ‘B’ are incorrect.
(C) Part ‘A’ is only correct.
(D) Part ‘B’ is only correct.
Ans: A
52. Match the following:
Table – I Table – II
a. Horizontal diversification i. New product in new market
b. Vertical diversification ii. New product, current market
c. Concentric diversification iii. Move firms suppliers or customers business
d. Conglomerate diversification iv. New product closely related to current product in new market
Codes:
a b c d
(A) i ii iii iv
(B) iii iv ii i
(C) ii iii i iv
(D) ii iii iv i
Ans: D
53. Goals-driven planning is best explained by
(A) planning to overcome critical issues that thwart attempts to be more customer-focused.
(B) hard to come up with good indicators and gather reliable base line data.
(C) carefully managed to focus on solutions.
(D) none of the above.
Ans: D
54. Which organisational structure is considered most complex?
(A) Functional structure
(B) Divisional structure
(C) Strategic Business Unit (SBU) structure
(D) Matrix structure
Ans: D
55. Statement – I: A nation’s competiveness depends on the capacity of its industry to innovate and upgrade.
Statement – II: Companies gain advantage against the world’s best competitors because of pressure and challenge.
(A) Both statements I and II are correct.
(B) Both statements I and II are incorrect.
(C) Statement I is correct, but statement II is incorrect.
(D) Statement I is incorrect, but statement II is correct.
Ans: C
56. Brain storming is a group creativity exercise designed to come up with _______.
(A) number of solutions to a single problem
(B) two solutions to a single problem
(C) three solutions to two problems
(D) many solutions to many problems
Ans: A
57. Four core themes of innovation are
(A) recognising the opportunity, finding the resources, developing the venture and creating value.
(B) finding the resources, developing the venture, recognizing the opportunity and creating value.
(C) developing the venture, creating value, recognising the opportunity and finding the resources.
(D) creating the value, recognizing the opportunity, developing the venture and finding the resources.
Ans: A
58. The main activities of SISI (Small Industries Services Institutes) are
(A) Assistance/Consultancy to prospective Entrepreneurs
(B) Assistance/Consultancy to exiting units
(C) (A) and (B)
(D) Assistance/Consultancy and incentives to existing units
Ans: C
59. Five steps of small business development shall occur in the order of
(A) Resource Maturity – Existence – Success – Survival – Takeoff
(B) Success – Existence – Survival – Takeoff – Resource Maturity
(C) Existence – Survival – Success – Takeoff – Resource Maturity
(D) Existence – Success – Survival – Resource Maturity – Takeoff
Ans: C
60. Which is not a socio-economic rationale for promoting SSI in India?
(A) Export Promotion
(B) Employment Generation
(C) Offering competition to large scale industry
(D) Labour intensive
Ans: C
61. A set of processes, customs, policies, laws and institutions, that affects the way in which a corporation is directed, administered or controlled in order to facilitate the interest of stake-holders is known as
(A) Corporate Social Responsibility
(B) Corporate Governance
(C) Corporate Sustainability
(D) Environmental Ethics
Ans: B
62. “We must maintain in good order the property, we are privileged to use, protecting the environment and natural resources” is known as
(A) Protecting business environment
(B) Social responsibility of business
(C) Maintaining good property
(D) Protect natural resources
Ans: B
63. Assertion (A): The Securities and Exchange Board of India has made Listing Agreement tough to ensure good corporate governance among the companies listed on Indian Stock Exchange.
Reasoning (R): In the absence of Clause 49, the listed companies may ignore the interest of stakeholders.
(A) (A) and (R) both are correct and (R) is right explanation of (A).
(B) (A) is correct, but (R) is not the correct explanation of (A).
(C) (R) is correct, but (A) is not the right assertion.
(D) Both (A) and (R) are incorrect.
Ans: A
64. A system of control is implemented to assist in aligning the incentives of managers with those of shareholder is known as
(A) Corporate Governance
(B) Government Control
(C) Director of Company
(D) Shareholders
Ans: A
65. Which of the following combination is suitably attributed to the statement that stakeholders should expect fair return on their investment?
(i) Optimization of Profit
(ii) Social Responsibility of Business
(iii) Competition Theory of Business
(iv) Walter’s Theory
(A) (i), (ii) and (iii)
(B) (ii), (iii) and (iv)
(C) Only (i) and (ii)
(D) Only (iii) and (iv)
Ans: C
66. The member countries of WTO have moved to “Product Patent Regime” under
(A) TRIMs
(B) TRIPs
(C) SAPTA
(D) BOP
Ans: B
67. Which of the following is not an element of logistics system?
(A) Nature of product
(B) Availability of infrastructure
(C) Quality of product
(D) Government policies
Ans: C
68. €/$ exchange rate goes from € 1 = $0.93 to €1 = $0.99. This indicates
(A) Dollar appreciation of 6.45%
(B) Dollar depreciation of 6.45%
(C) Dollar appreciation of 6.06%
(D) Dollar depreciation of 6.06%
Ans: D
69. Statement I: Fixed exchange rate system is disadvantageous.
Statement II: The government can alter the exchange rates.
(A) Statement I is correct, but statement II is incorrect.
(B) Statement I is incorrect, but statement II is correct.
(C) Statement I and statement II both are correct.
(D) Statement I and statement II both are incorrect.
Ans: C
70. Which of these is not a form of pre-shipment finance?
(A) Advance against export bills sent on collection.
(B) Advances against incentives receivable from Government.
(C) Packing credit.
(D) Pre-shipment credit in foreign currency.
Ans: A
71. Under which of the following exchange rate systems, exchange rates are either held constant or allowed to fluctuate only within very narrow boundaries?
(A) Fixed exchange rate system.
(B) Freely floating exchange rate system.
(C) Managed floats exchange rate system.
(D) Pegged exchange rate system.
Ans: A
72. The degree to which, a firm’s present value of future cash flows can be influenced by exchange rate fluctuations is referred to as
(A) Economic exposure
(B) Transaction exposure
(C) Translation exposure
(D) Accounting exposure
Ans: A
73. Bid/ask spread of a foreign currency can be computed by which of the following formulae?
(A) (Bid Rate – Ask Rate) / Ask Rate
(B) (Ask Rate – Bid Rate) / Ask Rate
(C) (Bid Rate – Ask Rate) / Bid Rate
(D) (Ask Rate – Bid Rate) / Bid Rate
Ans: B
74. Match the items given in Column – I with most appropriate options given in Column – II:
Column – I Column – II
a. Conditions imposed by a Government in respect of foreign investment i. Patents
b. Information with commercial value ii. Intellectual Property Right
c. Monopoly right granted by law iii. TRIMs
Codes:
a b c
(A) iii i ii
(B) iii ii i
(C) ii iii i
(D) ii i iii
Ans: B
75. Match the following:
List – I (Statements) List – II (Terms)
I. Countries which follow a unified informal tariff but different external tariff. i. Customs Union
II. Countries which follow a unified internal and external tariff system. ii. Common market
III. Countries which follow a unified internal and external tariff and allows free movement of factors of production
ii. Free trade area
IV. Countries which follow a unified internal and external tariff and allows free movement of factors of production plus having common economic and monitoring policy and common currency. iv. Economic union
Codes:
I II III IV
(A) iii i iv ii
(B) iii ii iv i
(C) iii ii i iv
(D) iii i ii iv
Ans: D
76. Given the sales volume, which of the following would lead to an increase in contribution margin?
(A) Variable cost remains same.
(B) Variable cost per unit decreases.
(C) Variable cost per unit increases.
(D) Fixed cost increase.
Ans: B
77. Vertical merger represents merger of firms
(A) Engaged in the same line of business.
(B) At different stages of production in an industry.
(C) Engaged in unrelated line of activities.
(D) All of the above.
Ans: B
78. A high debtor’s turnover ratio indicates
(A) Low amount tied upon debtors
(B) Increase in sales turnover
(C) Efficient conversion of debtors into cash
(D) (A) & (C)
Ans: D
79. Match the following:
List – I List – II
(Statement) (Term)
I. Independent floating exchange rate. 1. Fiat money
II. Exchange rate depending entirely on market forces. 2. Clean float
III. Floating exchange rate regime where the monetary authorities interfere in the foreign exchange market for stabilizing exchange rate. 3. Managed float
IV. Non-convertible paper currency. 4. Free float
Codes:
I II III IV
(A) 2 4 3 1
(B) 4 3 1 2
(C) 1 3 4 2
(D) 2 1 3 4
Ans: A
80. Projected cash flows change with changes in projected demand, price, cost of production, cost of capital, etc. All these changes are accommodated in a random manner by
(A) Sensitivity Analysis
(B) Simulation Technique
(C) Decision - Tree
(D) None of the above
Ans: B
81. When a firm has diversified in unrelated products, it is called
(A) Scramble diversification
(B) Related diversification
(C) Product mix
(D) Product line simplification
Ans: A
82. Which of the following condition is true about determinants and strengths of positioning strategy?
(A) There should be competition warranting positioning.
(B) The market segment to be served should be sizeable and profitable.
(C) The market segment should be able to effectively receive communication messages transmitted by the company.
(D) All of these.
Ans: D
83. Delphi method of estimating future demand for a product or service is associated with
(A) Past sales analysis
(B) Expert opinion method
(C) Market test method
(D) Composite of sales force opinion
Ans: B
84. A method for deriving the utility values that consumers attach to varying levels of a product attribute is called
(A) Product analysis
(B) Conjunctive analysis
(C) Conjoint analysis
(D) Market price analysis
Ans: C
85. Two statements are given below:
Statement I: Opinion leaders who provide product related information to the buyer and assist him or her in buying is called market mover.
Statement II: Opinion leaders who understand the buyer’s personal needs and use situations and aid the buyer is called purchase pal.
Choose the correct option about the statements from the options given below:
(A) Statement I alone is correct.
(B) Statement II alone is correct.
(C) Both statements are wrong.
(D) Both statements are correct.
Ans: D
86. Two statements are given below relating to the consumer brand selection model.
Statement I: As per disjunctive decision rule consumers set a minimum acceptable cut off level for each attribute and choose the first alternative that meets the minimum standard for all selected attributes.
Statement II: As per lexicographic decision rule consumers choose the best brand on the basis of its perceived most important attribute.
Choose the correct option about the statements from the options given below:
(A) Statement I alone is correct.
(B) Statement II alone is correct.
(C) Both statements are correct.
(D) Both statements are wrong.
Ans: B
87. Arrange the following stages in the industrial buying process in the sequential order:
1. General need description
2. Supplier search
3. Problem recognition
4. Performance review
5. Order route specification
6. Product specification
7. Proposal solicitation
8. Supplier selection
(A) 3-1-2-6-7-8-5-4
(B) 3-2-1-7-6-5-8-4
(C) 3-1-6-2-7-5-8-4
(D) 3-1-6-2-7-8-5-4
Ans: D
88. Match the following:
List – I List – II
(Statements) (Terms)
a. Attacking the weak spots of the competitor 1. Flank attack
b. Avoiding the main competitor and attacking easier ones. 2. Frontal attack
c. Attacking the leader on several areas. 3. Encirclement attack
d. Attacking the leader on its strong area. 4. By Pass attack
Codes:
a b c d
(A) 1 4 3 2
(B) 1 3 2 4
(C) 2 3 1 4
(D) 3 1 2 4
Ans: A
89. Match the following:
List – I List – II
(Statements) (Terms)
a. A market situation in which many competitors offering undifferentiated products or services. 1. Pure monopoly
b. A market situation in which many competitors offering differentiated products or services. 2. Oligopoly
c. A market situation in which a small number of large firms offering differentiated and standardized products or services. 3. Monopolistic competition
d. A market situation in which only one firm provides a certain products or services. 4. Pure competition
Codes:
a b c d
(A) 4 3 1 2
(B) 4 2 3 1
(C) 4 3 2 1
(D) 3 4 2 1
Ans: C
90. Which one of the three basic approaches used customarily explaining the Marketing System?
(A) Commodity, institutions and functional approach.
(B) Commodity, functional risks, management approach.
(C) Product, service mix, functional and institutional approach.
(D) None of the above.
Ans: B
91. Statement I: One of the key factors impacting on Production Managers is that the country’s borders no longer provide protection from foreign imports due to globalization.
Statement II: To succeed in global competition, Production Management of Companies must make a commitment to innovate products and services with high quality at low prices.
(A) Both the statements are incorrect.
(B) Statement I is correct, but II is incorrect.
(C) Statement I is incorrect, but II is correct.
(D) Both statements are correct.
Ans: D
92. Positioning the production system means
(A) Selecting the type of product design.
(B) Selecting the type of production processing system.
(C) Selecting the type of finished goods inventory policy for each product group.
(D) All of the above.
Ans: D
93. Which one is not a part of control charts for variables?
(A) X-chart
(B) R-chart
(C) σ-chart
(D) C-chart
Ans: D
94. Match the following:
List – I List – II
a. Decision-making under conditions of certainty. (i) When the outcomes are known but the probabilities of outcomes are not known.
b. Decision-making under conditions of risk. (ii) When elements of decision problem are clear and also the outcomes of different alternatives are known.
c. Decision-making under conditions of uncertainty. (iii) When outcomes probabilities are known.
Codes:
(a) (b) (c)
(A) (i) (ii) (iii)
(B) (ii) (iii) (i)
(C) (iii) (ii) (i)
(D) (i) (iii) (ii)
Ans: B
95. Edwards Deming, one of the Quality Gurus, introduced a concept of cycle for continuous improvement of quality. The cycle consists of
(i) Act
(ii) Plan
(iii) Do
(iv) Check
The correct order of this cycle of activities is
(A) (i), (iii), (iv), (ii)
(B) (ii), (iv), (iii), (i)
(C) (ii), (iii), (iv), (i)
(D) (i), (ii), (iii), (iv)
Ans: C
96. Variable which has a strong contingent effect on the independent dependent variable relationship is referred to as
(A) Extraneous variable
(B) Intervening variable
(C) Moderating variable
(D) None of the above
Ans: C
97. Coefficient of determination (R2) indicates
(A) Percentage of variation in the dependent variable that can be explained by independent variable.
(B) Percentage of variation in the dependent variable that cannot be explained by independent variable.
(C) Percentage variation in the independent variable that can be explained by dependent variable.
(D) Percentage variation in the independent variable that cannot be explained by the dependent variable.
Ans: A
98. If α = 0.05 and β = 0.10, the power of that hypothesis test is
(A) 0.15
(B) 0.90
(C) 0.85
(D) 0.95
Ans: B
99 Match the following:
List – A List – B
(a) Connects a very large number of devices and spans across a dispersed geographical location covering many cities. (i) Topology
(b) Encrypted communication tunnels with access control and user authentication (ii) Ethernet
(c) Physical or geometric arrangement of the network influenced by the physical connections of links and nodes. (iii) Wide Area Network
(d) Local area network technology that sends communication through radio frequency signals. (iv) Virtual Private Network
Codes:
(a) (b) (c) (d)
(A) (iii) (i) (iv) (ii)
(B) (iv) (iii) (i) (ii)
(C) (iii) (iv) (ii) (i)
(D) (iii) (iv) (i) (ii)
Ans: D
100. From the statements given below, choose the correct answer.
Statement I: One of the important aspects of IT enabled services is value addition.
Statement II: ERP and CRM are examples for IT enabled services.
Codes:
(A) Statements I and II are correct.
(B) Statement I is correct, but II is incorrect.
(C) Statements I and II are incorrect.
(D) Statement I is incorrect, but II is correct.
Ans: A
Part ‘A’: Strategy is the action plan for achieving organisational objectives.
Part ‘B’: It is the bridge between the present and desired future.
Statement:
(A) Both Part ‘A’ and ‘B’ are correct.
(B) Both Part ‘A’ and ‘B’ are incorrect.
(C) Part ‘A’ is only correct.
(D) Part ‘B’ is only correct.
Ans: A
52. Match the following:
Table – I Table – II
a. Horizontal diversification i. New product in new market
b. Vertical diversification ii. New product, current market
c. Concentric diversification iii. Move firms suppliers or customers business
d. Conglomerate diversification iv. New product closely related to current product in new market
Codes:
a b c d
(A) i ii iii iv
(B) iii iv ii i
(C) ii iii i iv
(D) ii iii iv i
Ans: D
53. Goals-driven planning is best explained by
(A) planning to overcome critical issues that thwart attempts to be more customer-focused.
(B) hard to come up with good indicators and gather reliable base line data.
(C) carefully managed to focus on solutions.
(D) none of the above.
Ans: D
54. Which organisational structure is considered most complex?
(A) Functional structure
(B) Divisional structure
(C) Strategic Business Unit (SBU) structure
(D) Matrix structure
Ans: D
55. Statement – I: A nation’s competiveness depends on the capacity of its industry to innovate and upgrade.
Statement – II: Companies gain advantage against the world’s best competitors because of pressure and challenge.
(A) Both statements I and II are correct.
(B) Both statements I and II are incorrect.
(C) Statement I is correct, but statement II is incorrect.
(D) Statement I is incorrect, but statement II is correct.
Ans: C
56. Brain storming is a group creativity exercise designed to come up with _______.
(A) number of solutions to a single problem
(B) two solutions to a single problem
(C) three solutions to two problems
(D) many solutions to many problems
Ans: A
57. Four core themes of innovation are
(A) recognising the opportunity, finding the resources, developing the venture and creating value.
(B) finding the resources, developing the venture, recognizing the opportunity and creating value.
(C) developing the venture, creating value, recognising the opportunity and finding the resources.
(D) creating the value, recognizing the opportunity, developing the venture and finding the resources.
Ans: A
58. The main activities of SISI (Small Industries Services Institutes) are
(A) Assistance/Consultancy to prospective Entrepreneurs
(B) Assistance/Consultancy to exiting units
(C) (A) and (B)
(D) Assistance/Consultancy and incentives to existing units
Ans: C
59. Five steps of small business development shall occur in the order of
(A) Resource Maturity – Existence – Success – Survival – Takeoff
(B) Success – Existence – Survival – Takeoff – Resource Maturity
(C) Existence – Survival – Success – Takeoff – Resource Maturity
(D) Existence – Success – Survival – Resource Maturity – Takeoff
Ans: C
60. Which is not a socio-economic rationale for promoting SSI in India?
(A) Export Promotion
(B) Employment Generation
(C) Offering competition to large scale industry
(D) Labour intensive
Ans: C
61. A set of processes, customs, policies, laws and institutions, that affects the way in which a corporation is directed, administered or controlled in order to facilitate the interest of stake-holders is known as
(A) Corporate Social Responsibility
(B) Corporate Governance
(C) Corporate Sustainability
(D) Environmental Ethics
Ans: B
62. “We must maintain in good order the property, we are privileged to use, protecting the environment and natural resources” is known as
(A) Protecting business environment
(B) Social responsibility of business
(C) Maintaining good property
(D) Protect natural resources
Ans: B
63. Assertion (A): The Securities and Exchange Board of India has made Listing Agreement tough to ensure good corporate governance among the companies listed on Indian Stock Exchange.
Reasoning (R): In the absence of Clause 49, the listed companies may ignore the interest of stakeholders.
(A) (A) and (R) both are correct and (R) is right explanation of (A).
(B) (A) is correct, but (R) is not the correct explanation of (A).
(C) (R) is correct, but (A) is not the right assertion.
(D) Both (A) and (R) are incorrect.
Ans: A
64. A system of control is implemented to assist in aligning the incentives of managers with those of shareholder is known as
(A) Corporate Governance
(B) Government Control
(C) Director of Company
(D) Shareholders
Ans: A
65. Which of the following combination is suitably attributed to the statement that stakeholders should expect fair return on their investment?
(i) Optimization of Profit
(ii) Social Responsibility of Business
(iii) Competition Theory of Business
(iv) Walter’s Theory
(A) (i), (ii) and (iii)
(B) (ii), (iii) and (iv)
(C) Only (i) and (ii)
(D) Only (iii) and (iv)
Ans: C
66. The member countries of WTO have moved to “Product Patent Regime” under
(A) TRIMs
(B) TRIPs
(C) SAPTA
(D) BOP
Ans: B
67. Which of the following is not an element of logistics system?
(A) Nature of product
(B) Availability of infrastructure
(C) Quality of product
(D) Government policies
Ans: C
68. €/$ exchange rate goes from € 1 = $0.93 to €1 = $0.99. This indicates
(A) Dollar appreciation of 6.45%
(B) Dollar depreciation of 6.45%
(C) Dollar appreciation of 6.06%
(D) Dollar depreciation of 6.06%
Ans: D
69. Statement I: Fixed exchange rate system is disadvantageous.
Statement II: The government can alter the exchange rates.
(A) Statement I is correct, but statement II is incorrect.
(B) Statement I is incorrect, but statement II is correct.
(C) Statement I and statement II both are correct.
(D) Statement I and statement II both are incorrect.
Ans: C
70. Which of these is not a form of pre-shipment finance?
(A) Advance against export bills sent on collection.
(B) Advances against incentives receivable from Government.
(C) Packing credit.
(D) Pre-shipment credit in foreign currency.
Ans: A
71. Under which of the following exchange rate systems, exchange rates are either held constant or allowed to fluctuate only within very narrow boundaries?
(A) Fixed exchange rate system.
(B) Freely floating exchange rate system.
(C) Managed floats exchange rate system.
(D) Pegged exchange rate system.
Ans: A
72. The degree to which, a firm’s present value of future cash flows can be influenced by exchange rate fluctuations is referred to as
(A) Economic exposure
(B) Transaction exposure
(C) Translation exposure
(D) Accounting exposure
Ans: A
73. Bid/ask spread of a foreign currency can be computed by which of the following formulae?
(A) (Bid Rate – Ask Rate) / Ask Rate
(B) (Ask Rate – Bid Rate) / Ask Rate
(C) (Bid Rate – Ask Rate) / Bid Rate
(D) (Ask Rate – Bid Rate) / Bid Rate
Ans: B
74. Match the items given in Column – I with most appropriate options given in Column – II:
Column – I Column – II
a. Conditions imposed by a Government in respect of foreign investment i. Patents
b. Information with commercial value ii. Intellectual Property Right
c. Monopoly right granted by law iii. TRIMs
Codes:
a b c
(A) iii i ii
(B) iii ii i
(C) ii iii i
(D) ii i iii
Ans: B
75. Match the following:
List – I (Statements) List – II (Terms)
I. Countries which follow a unified informal tariff but different external tariff. i. Customs Union
II. Countries which follow a unified internal and external tariff system. ii. Common market
III. Countries which follow a unified internal and external tariff and allows free movement of factors of production
ii. Free trade area
IV. Countries which follow a unified internal and external tariff and allows free movement of factors of production plus having common economic and monitoring policy and common currency. iv. Economic union
Codes:
I II III IV
(A) iii i iv ii
(B) iii ii iv i
(C) iii ii i iv
(D) iii i ii iv
Ans: D
76. Given the sales volume, which of the following would lead to an increase in contribution margin?
(A) Variable cost remains same.
(B) Variable cost per unit decreases.
(C) Variable cost per unit increases.
(D) Fixed cost increase.
Ans: B
77. Vertical merger represents merger of firms
(A) Engaged in the same line of business.
(B) At different stages of production in an industry.
(C) Engaged in unrelated line of activities.
(D) All of the above.
Ans: B
78. A high debtor’s turnover ratio indicates
(A) Low amount tied upon debtors
(B) Increase in sales turnover
(C) Efficient conversion of debtors into cash
(D) (A) & (C)
Ans: D
79. Match the following:
List – I List – II
(Statement) (Term)
I. Independent floating exchange rate. 1. Fiat money
II. Exchange rate depending entirely on market forces. 2. Clean float
III. Floating exchange rate regime where the monetary authorities interfere in the foreign exchange market for stabilizing exchange rate. 3. Managed float
IV. Non-convertible paper currency. 4. Free float
Codes:
I II III IV
(A) 2 4 3 1
(B) 4 3 1 2
(C) 1 3 4 2
(D) 2 1 3 4
Ans: A
80. Projected cash flows change with changes in projected demand, price, cost of production, cost of capital, etc. All these changes are accommodated in a random manner by
(A) Sensitivity Analysis
(B) Simulation Technique
(C) Decision - Tree
(D) None of the above
Ans: B
81. When a firm has diversified in unrelated products, it is called
(A) Scramble diversification
(B) Related diversification
(C) Product mix
(D) Product line simplification
Ans: A
82. Which of the following condition is true about determinants and strengths of positioning strategy?
(A) There should be competition warranting positioning.
(B) The market segment to be served should be sizeable and profitable.
(C) The market segment should be able to effectively receive communication messages transmitted by the company.
(D) All of these.
Ans: D
83. Delphi method of estimating future demand for a product or service is associated with
(A) Past sales analysis
(B) Expert opinion method
(C) Market test method
(D) Composite of sales force opinion
Ans: B
84. A method for deriving the utility values that consumers attach to varying levels of a product attribute is called
(A) Product analysis
(B) Conjunctive analysis
(C) Conjoint analysis
(D) Market price analysis
Ans: C
85. Two statements are given below:
Statement I: Opinion leaders who provide product related information to the buyer and assist him or her in buying is called market mover.
Statement II: Opinion leaders who understand the buyer’s personal needs and use situations and aid the buyer is called purchase pal.
Choose the correct option about the statements from the options given below:
(A) Statement I alone is correct.
(B) Statement II alone is correct.
(C) Both statements are wrong.
(D) Both statements are correct.
Ans: D
86. Two statements are given below relating to the consumer brand selection model.
Statement I: As per disjunctive decision rule consumers set a minimum acceptable cut off level for each attribute and choose the first alternative that meets the minimum standard for all selected attributes.
Statement II: As per lexicographic decision rule consumers choose the best brand on the basis of its perceived most important attribute.
Choose the correct option about the statements from the options given below:
(A) Statement I alone is correct.
(B) Statement II alone is correct.
(C) Both statements are correct.
(D) Both statements are wrong.
Ans: B
87. Arrange the following stages in the industrial buying process in the sequential order:
1. General need description
2. Supplier search
3. Problem recognition
4. Performance review
5. Order route specification
6. Product specification
7. Proposal solicitation
8. Supplier selection
(A) 3-1-2-6-7-8-5-4
(B) 3-2-1-7-6-5-8-4
(C) 3-1-6-2-7-5-8-4
(D) 3-1-6-2-7-8-5-4
Ans: D
88. Match the following:
List – I List – II
(Statements) (Terms)
a. Attacking the weak spots of the competitor 1. Flank attack
b. Avoiding the main competitor and attacking easier ones. 2. Frontal attack
c. Attacking the leader on several areas. 3. Encirclement attack
d. Attacking the leader on its strong area. 4. By Pass attack
Codes:
a b c d
(A) 1 4 3 2
(B) 1 3 2 4
(C) 2 3 1 4
(D) 3 1 2 4
Ans: A
89. Match the following:
List – I List – II
(Statements) (Terms)
a. A market situation in which many competitors offering undifferentiated products or services. 1. Pure monopoly
b. A market situation in which many competitors offering differentiated products or services. 2. Oligopoly
c. A market situation in which a small number of large firms offering differentiated and standardized products or services. 3. Monopolistic competition
d. A market situation in which only one firm provides a certain products or services. 4. Pure competition
Codes:
a b c d
(A) 4 3 1 2
(B) 4 2 3 1
(C) 4 3 2 1
(D) 3 4 2 1
Ans: C
90. Which one of the three basic approaches used customarily explaining the Marketing System?
(A) Commodity, institutions and functional approach.
(B) Commodity, functional risks, management approach.
(C) Product, service mix, functional and institutional approach.
(D) None of the above.
Ans: B
91. Statement I: One of the key factors impacting on Production Managers is that the country’s borders no longer provide protection from foreign imports due to globalization.
Statement II: To succeed in global competition, Production Management of Companies must make a commitment to innovate products and services with high quality at low prices.
(A) Both the statements are incorrect.
(B) Statement I is correct, but II is incorrect.
(C) Statement I is incorrect, but II is correct.
(D) Both statements are correct.
Ans: D
92. Positioning the production system means
(A) Selecting the type of product design.
(B) Selecting the type of production processing system.
(C) Selecting the type of finished goods inventory policy for each product group.
(D) All of the above.
Ans: D
93. Which one is not a part of control charts for variables?
(A) X-chart
(B) R-chart
(C) σ-chart
(D) C-chart
Ans: D
94. Match the following:
List – I List – II
a. Decision-making under conditions of certainty. (i) When the outcomes are known but the probabilities of outcomes are not known.
b. Decision-making under conditions of risk. (ii) When elements of decision problem are clear and also the outcomes of different alternatives are known.
c. Decision-making under conditions of uncertainty. (iii) When outcomes probabilities are known.
Codes:
(a) (b) (c)
(A) (i) (ii) (iii)
(B) (ii) (iii) (i)
(C) (iii) (ii) (i)
(D) (i) (iii) (ii)
Ans: B
95. Edwards Deming, one of the Quality Gurus, introduced a concept of cycle for continuous improvement of quality. The cycle consists of
(i) Act
(ii) Plan
(iii) Do
(iv) Check
The correct order of this cycle of activities is
(A) (i), (iii), (iv), (ii)
(B) (ii), (iv), (iii), (i)
(C) (ii), (iii), (iv), (i)
(D) (i), (ii), (iii), (iv)
Ans: C
96. Variable which has a strong contingent effect on the independent dependent variable relationship is referred to as
(A) Extraneous variable
(B) Intervening variable
(C) Moderating variable
(D) None of the above
Ans: C
97. Coefficient of determination (R2) indicates
(A) Percentage of variation in the dependent variable that can be explained by independent variable.
(B) Percentage of variation in the dependent variable that cannot be explained by independent variable.
(C) Percentage variation in the independent variable that can be explained by dependent variable.
(D) Percentage variation in the independent variable that cannot be explained by the dependent variable.
Ans: A
98. If α = 0.05 and β = 0.10, the power of that hypothesis test is
(A) 0.15
(B) 0.90
(C) 0.85
(D) 0.95
Ans: B
99 Match the following:
List – A List – B
(a) Connects a very large number of devices and spans across a dispersed geographical location covering many cities. (i) Topology
(b) Encrypted communication tunnels with access control and user authentication (ii) Ethernet
(c) Physical or geometric arrangement of the network influenced by the physical connections of links and nodes. (iii) Wide Area Network
(d) Local area network technology that sends communication through radio frequency signals. (iv) Virtual Private Network
Codes:
(a) (b) (c) (d)
(A) (iii) (i) (iv) (ii)
(B) (iv) (iii) (i) (ii)
(C) (iii) (iv) (ii) (i)
(D) (iii) (iv) (i) (ii)
Ans: D
100. From the statements given below, choose the correct answer.
Statement I: One of the important aspects of IT enabled services is value addition.
Statement II: ERP and CRM are examples for IT enabled services.
Codes:
(A) Statements I and II are correct.
(B) Statement I is correct, but II is incorrect.
(C) Statements I and II are incorrect.
(D) Statement I is incorrect, but II is correct.
Ans: A