MANAGEMENT- PAGE 6
MANAGEMENT MCQs
1. Hawthorne Experiment is related to the
(A) Systems theory
(B) Classical theory
(C) Human relations theory
(D) Scientific management theory
Ans: C
2. Cost incurred in the past and is not affected by a current decision is referred to as:
(A) Sunk cost
(B) Marginal cost
(C) Incremental cost
(D) Replacement cost
Ans: A
3. The principle of organisation that no employee should report to more than one superior is called
(A) Scalar principle
(B) Span of control
(C) Unity of command
(D) Unity of direction
Ans: C
4. ‘Rege Committee’ is related to
(A) Working conditions in Indian Industry
(B) Social security in Indian Industry
(C) Individual differences in Indian Industry
(D) None of the above
Ans: A
5. The factors affecting to P/E multiple are
(A) Dividend pay-out ratio and required return
(B) Required return and expected growth rate
(C) Dividend pay-out ratio and expected growth rate
(D) Dividend pay-out ratio, required return and expected growth rate
Ans: D
6. Which of the following is not one of the benefits of E-Commerce?
(A) E-Commerce offers greater flexibility in meeting consumer needs.
(B) E-Commerce can help to reduce cost.
(C) E-Commerce increases potential market share.
(D) E-Commerce increases the net cost per contact.
Ans: D
7. Which among the following is not concerned with the PERT evolution?
(A) Polaris Project
(B) Lock-head Aircraft Corporation
(C) Both (A) and (B)
(D) None of the above
Ans: C
8. Before a company decides to target a particular market segment, which important factors are to be examined against organization’s objectives and resources?
(A) Market size
(B) Growth rate
(C) Structural attractiveness
(D) All of the above
Ans: D
9. Balance of Payment is
(A) Balance of trade + Net earnings on invisibles
(B) Foreign exchange inflow – Foreign exchange outflow
(C) Balance of current account + Balance of capital account + Statistical discrepancy
(D) Export of goods – Import of goods
Ans: C
10. Factors contributing to unethical behaviour are
(A) Poor leadership
(B) Poor internal communication
(C) Lack of management support
(D) All of the above
Ans: D
11. Which of the following is not included in the five forces of competition?
(A) Bargaining power of suppliers
(B) Bargaining power of consumers
(C) Threat of substitutes
(D) Strategic planning
Ans: D
12. Match the following:
List-I List-II
Financial Institution Year of Establishment
(i) Industrial Development Bank of India (IDBI) I. 1955
(ii) Small Industries Development Bank of India (SIDBI) II. 1964
(iii) Natural Small Industries Corporation (NSIC) III. 1948
(iv) Industrial Finance Corporation of India (IFCI) IV. 1989
Codes:
(i) (ii) (iii) (iv)
(A) I IV III II
(B) II IV I III
(C) III I II IV
(D) III II I IV
Ans: B
13. The practice of selling two or more separate products together for a single price is:
(A) Bundling
(B) Dumping
(C) Both (A) and (B)
(D) None of the above
Ans: A
14. Which is the oldest and simplest form of organisation?
(A) Functional organisation
(B) Committee organisation
(C) Line organisation
(D) Line and staff organisation
Ans: C
15. While considering promotion of an employee, the following is the most important consideration:
(A) Seniority
(B) Competence
(C) Loyalty
(D) Only (A) and (B)
Ans: D
16. Which type of promotion has been described by W. R. Spriegel?
(i) Departmental Promotion
(ii) Inter-departmental Promotion
(iii) Inter-plant Promotion
(iv) Inter-company Promotion
(A) (i), (ii), (iii)
(B) (ii), (iii), (iv)
(C) (i), (ii), (iv)
(D) (i), (iii), (iv)
Ans: A
17. Market risk is also known as
(A) Systematic risk or diversifiable risk
(B) Unsystematic risk or diversifiable risk
(C) Systematic risk or non-diversifiable risk
(D) Unsystematic risk or non-diversifiable risk
Ans: C
18. The discount rate that makes NPV equal to zero is known as
(A) Benefit–Cost ratio
(B) Internal Rate of Return
(C) Discounted Pay-back period
(D) Profitability Index
Ans: B
19. Match the following:
List-I List-II
(i) Poisson distribution I. Mean is greater than variance
(ii) Normal distribution II. Mean & Variance are same
(iii) Chi-Square distribution III. Symmetric
(iv) Binomial distribution IV. Positively skewed
Codes:
(i) (ii) (iii) (iv)
(A) II I III IV
(B) IV I III II
(C) II III IV I
(D) IV II I III
Ans: C
20. A critical activity is defined as one whose
(A) Total float is zero.
(B) Free float is zero.
(C) Duration is the longest.
(D) Duration is the smallest.
Ans: A
21. In the buying decision process, what is the term used for a person who first suggests buying the product or service?
(A) Influencer
(B) Initiator
(C) Decider
(D) Buyer
Ans: B
22. Strategies formulated to convert a sick unit to healthy is referred to:
(A) Turnaround
(B) Expansion
(C) Diversification
(D) Stabilisation
Ans: A
23. Which one is an international credit rating agency?
(A) Mc Kinsey
(B) B C G
(C) Standard and poor
(D) I M F
Ans: C
24. Ethical challenges may arise on account of
(A) Failure of personal character, conflict of personal value & organisational goals and conflict of organisational goals and social values
(B) Hazardous but popular products
(C) Both (A) and (B)
(D) None of the above
Ans: C
25. Under the Walter Model, if the rate of return is greater than the cost of capital:
(A) Price per share does not vary with the increase or decrease in dividend pay-out ratio.
(B) Price per share increases as the dividend pay-out ratio increases.
(C) Price per share increases as the dividend pay-out ratio decreases.
(D) None of the above.
Ans: C
26. Which one of the following is not a qualitative forecasting method?
(A) Educated guess
(B) Executive Committee Consensus
(C) Delphi method
(D) Linear regression method
Ans: D
27. Statement I: Mean (–X) chart do not give the desired result about process variability.
Statement II: Range (R) chart monitors process variability.
(A) Statement I is correct, but Statement II is false.
(B) Statement II is correct, but Statement I is false.
(C) Both Statements I and II are correct.
(D) Both Statements I and II are false.
Ans: C
28. Which one is not a part of control charts for attributes?
(A) P-chart
(B) σ-chart
(C) np-chart
(D) c-chart
Ans: B
29. There are different phases in a Operations Research Project. They are
(i) Research phase
(ii) Action phase
(iii) Judgement phase
The correct sequence of these phases is
(A) (i), (ii), (iii)
(B) (iii), (i), (ii)
(C) (ii), (iii), (i)
(D) (iii), (ii), (i)
Ans: B
30. The Graphical method can be used to solve
(A) A Linear Programming Problem (LPP) with all integer data.
(B) A LPP with two decision variables.
(C) Any LPP.
(D) A transportation problem with two origins and two destinations.
Ans: B
31. A vendor can make a profit of Rs. 3,000 with a probability of 0.4 or make a loss of Rs. 1,000 with a probability of 0.6. What is his expected profit?
(A) Rs. 600
(B) Rs. 800
(C) Rs. 1,000
(D) Rs. 500
Ans: A
32. If the sample size is less than 50, which non parametric test can be used to test the independence of attributes?
(A) Chi-square test
(B) Fisher Irwin test
(C) Cochran Q test
(D) Kruskal Wallis test
Ans: B
33. Match the items given in List-I with most appropriate options given in List-II.
List – I List – II
(a) Centroid Method (i) Multiple Regression
(b) Hierarchical Method (ii) Factor Analysis
(c) Relationship between a single metric dependent and two or more independent variables (iii) MANOVA
(d) The main and interactive effects of categorical variables on multiple dependent interval variables. (iv) Cluster Analysis
Codes:
(a) (b) (c) (d)
(A) (iv) (ii) (i) (iii)
(B) (ii) (iv) (i) (iii)
(C) (ii) (iv) (iii) (i)
(D) (iv) (iii) (i) (ii)
Ans: B
34. Identify the window not associated with SPSS.
(A) Editor
(B) Syntax
(C) Output
(D) Format Cells
Ans: D
35. Match the items given in Column-A with the items given in Column-B.
Column – A
Column - B
(a) A process to upgrade the quality of the data before it is moved into a data warehouse. (i) Pattern recognition
(b) A system that is used to run the business in real time and is based on current data. (ii) Data Scrubbing
(c) A critical success factor in data mining of large data store. (iii) Operational system
Codes:
(a) (b) (c)
(A) (ii) (iii) (i)
(B) (iii) (ii) (i)
(C) (i) (ii) (iii)
(D) (ii) (i) (iii)
Ans: A
36. In BCG Matrix which division represents the organisation’s best long-run opportunities for growth and profitability?
(A) Question marks
(B) Stars
(C) Cash Cows
(D) Dogs
Ans: B
37. In a comprehensive strategy formulation framework which matrix reveals the relative attractiveness of alternative strategies and thus provides objective basis for selecting specific strategies.
(A) SPACE Matrix
(B) SWOT Matrix
(C) QSPM Matrix
(D) Competitive Profile Matrix (CPM)
Ans: C
38. Stage 2 of strategy formulation consists of
(A) EFE Matrix, the IFE Matrix and the Competitive Profile Matrix (CPM).
(B) SWOT Matrix, SPACE Matrix, BCG Matrix, the Internal- External (IE) Matrix, and the Grand Strategy Matrix.
(C) Quantitative Strategic Planning Matrix (QSPM).
(D) EFE Matrix, the IFE Matrix and Quantitative Strategic Planning Matrix (QSPM).
Ans: B
39. Match the following:
Term Explanation
a. Strategy 1. Enduring statements of purpose that distinguish one business from other simple firms.
b. Vision 2. Specific results that an organization seeks to achieve.
c. Mission 3. What do we want to become?
d. Objectives 4. Means by which long term objectives will be achieved.
Codes:
a b c d
(A) 4 3 1 2
(B) 4 2 3 1
(C) 1 3 2 4
(D) 1 2 3 4
Ans: A
40. Match the following:
List – I List – II
(a) Italian Culture i. Importance on group loyalty and consensus
(b) American Culture ii. Employment as workers of those who are agreeable, respectful and obedient rather than innovative, creative and independent.
(c) Mexican Culture iii. Willing to do business with individuals they do not know.
(d) Japanese Culture iv. A culture where in you do not soften up executives with praise before criticize.
Codes:
a b c d
(A) i ii iii iv
(B) iv iii ii i
(C) ii iii iv i
(D) iii iv i ii
Ans: B
41. An Entrepreneur who is dominated more by customs, religions, traditions and past practices and he is not ready to take any risk is called as
(A) Drone Entrepreneur
(B) Adoptive Entrepreneur
(C) Fabian Entrepreneur
(D) Innovative Entrepreneur
Ans: C
42. “Poverty is an artificial creation. It does not belong to human civilization and we can change that and can make people come out of poverty through redesigning our institutions and policies.” This preamble refers to
(A) Women Entrepreneurship
(B) Corporate Entrepreneurship
(C) Social Entrepreneurship
(D) None of the above
Ans: C
43. Match the following:
List – I List – II
(Subject) (Technique)
a. Entrepreneurship 1. Innovation
b. Marketing 2. Promotion Mix
c. Inventory Management 3. Reorder Level
d. HR Planning 4. Appraisals
Codes:
a b c d
(A) 1 3 2 4
(B) 1 2 3 4
(C) 4 3 2 1
(D) 4 2 3 1
Ans: B
44. _______ means identifying and imitating the best in the world at specific tasks and functions.
(A) Quality circle
(B) Outsourcing
(C) Bench marking
(D) Continuous Improvement
Ans: C
45. Match the following:
(a) Action planning (i) New Actions are taken and old habits are broken.
(b) Accountability (ii) It is the periodic review of what has already been executed.
(c) Working the plan (iii) It is the art of delegation to implement a business plan.
(d) Reviewing the progress (iv) Making decisions relating to the order in which the Business plan is implemented.
Codes:
(a) (b) (c) (d)
(A) (ii) (iii) (iv) (i)
(B) (iv) (iii) (i) (ii)
(C) (i) (iv) (iii) (ii)
(D) (iii) (iv) (ii) (i)
Ans: B
46. Which of the following duties is not a general duty of directors of a company?
(A) Duty of good faith
(B) Duty of care
(C) Duty to attend Board Meeting
(D) Duty not to delegate
Ans: C
47. The principles to be followed for corporate social responsibility are
(A) involvement of stakeholders.
(B) maintaining transparency in reporting.
(C) independent verification of policies and outcome.
(D) All of the above.
Ans: D
48. Match the following:
List – I List - II
(a) Value (i) Aham Brahmasmi
(b) Unethical behaviour (ii) Recycling Waste
(c) Indian ethos (iii)Bribery
(d) Environmental responsibility (iv) Trust worthiness
Codes:
(a) (b) (c) (d)
(A) (i) (iii) (ii) (iv)
(B) (iv) (iii) (i) (ii)
(C) (ii) (iii) (iv) (i)
(D) (i) (iii) (iv) (ii)
Ans: B
49. The obligation of an organization behave in a ethical way is known as
(A) Knowledge about ethics
(B) Social responsibility of business
(C) Organisational behaviour
(D) Business without ethics
Ans: B
50. Identify the correct sequence of steps in a value identification process:
(i) Define the role of executive in leading the staff.
(ii) Learn about and discuss the power of shared values.
(iii) Obtain consensus that the leaders are committed to creating value based workplace.
(iv) Provide written material the executives can share with their reporting staff.
Codes:
(A) (i), (ii), (iii) and (iv)
(B) (iv), (ii), (iii) and (i)
(C) (ii), (iii), (i) and (iv)
(D) (ii), (iii), (iv) and (i)
Ans: C
(A) Systems theory
(B) Classical theory
(C) Human relations theory
(D) Scientific management theory
Ans: C
2. Cost incurred in the past and is not affected by a current decision is referred to as:
(A) Sunk cost
(B) Marginal cost
(C) Incremental cost
(D) Replacement cost
Ans: A
3. The principle of organisation that no employee should report to more than one superior is called
(A) Scalar principle
(B) Span of control
(C) Unity of command
(D) Unity of direction
Ans: C
4. ‘Rege Committee’ is related to
(A) Working conditions in Indian Industry
(B) Social security in Indian Industry
(C) Individual differences in Indian Industry
(D) None of the above
Ans: A
5. The factors affecting to P/E multiple are
(A) Dividend pay-out ratio and required return
(B) Required return and expected growth rate
(C) Dividend pay-out ratio and expected growth rate
(D) Dividend pay-out ratio, required return and expected growth rate
Ans: D
6. Which of the following is not one of the benefits of E-Commerce?
(A) E-Commerce offers greater flexibility in meeting consumer needs.
(B) E-Commerce can help to reduce cost.
(C) E-Commerce increases potential market share.
(D) E-Commerce increases the net cost per contact.
Ans: D
7. Which among the following is not concerned with the PERT evolution?
(A) Polaris Project
(B) Lock-head Aircraft Corporation
(C) Both (A) and (B)
(D) None of the above
Ans: C
8. Before a company decides to target a particular market segment, which important factors are to be examined against organization’s objectives and resources?
(A) Market size
(B) Growth rate
(C) Structural attractiveness
(D) All of the above
Ans: D
9. Balance of Payment is
(A) Balance of trade + Net earnings on invisibles
(B) Foreign exchange inflow – Foreign exchange outflow
(C) Balance of current account + Balance of capital account + Statistical discrepancy
(D) Export of goods – Import of goods
Ans: C
10. Factors contributing to unethical behaviour are
(A) Poor leadership
(B) Poor internal communication
(C) Lack of management support
(D) All of the above
Ans: D
11. Which of the following is not included in the five forces of competition?
(A) Bargaining power of suppliers
(B) Bargaining power of consumers
(C) Threat of substitutes
(D) Strategic planning
Ans: D
12. Match the following:
List-I List-II
Financial Institution Year of Establishment
(i) Industrial Development Bank of India (IDBI) I. 1955
(ii) Small Industries Development Bank of India (SIDBI) II. 1964
(iii) Natural Small Industries Corporation (NSIC) III. 1948
(iv) Industrial Finance Corporation of India (IFCI) IV. 1989
Codes:
(i) (ii) (iii) (iv)
(A) I IV III II
(B) II IV I III
(C) III I II IV
(D) III II I IV
Ans: B
13. The practice of selling two or more separate products together for a single price is:
(A) Bundling
(B) Dumping
(C) Both (A) and (B)
(D) None of the above
Ans: A
14. Which is the oldest and simplest form of organisation?
(A) Functional organisation
(B) Committee organisation
(C) Line organisation
(D) Line and staff organisation
Ans: C
15. While considering promotion of an employee, the following is the most important consideration:
(A) Seniority
(B) Competence
(C) Loyalty
(D) Only (A) and (B)
Ans: D
16. Which type of promotion has been described by W. R. Spriegel?
(i) Departmental Promotion
(ii) Inter-departmental Promotion
(iii) Inter-plant Promotion
(iv) Inter-company Promotion
(A) (i), (ii), (iii)
(B) (ii), (iii), (iv)
(C) (i), (ii), (iv)
(D) (i), (iii), (iv)
Ans: A
17. Market risk is also known as
(A) Systematic risk or diversifiable risk
(B) Unsystematic risk or diversifiable risk
(C) Systematic risk or non-diversifiable risk
(D) Unsystematic risk or non-diversifiable risk
Ans: C
18. The discount rate that makes NPV equal to zero is known as
(A) Benefit–Cost ratio
(B) Internal Rate of Return
(C) Discounted Pay-back period
(D) Profitability Index
Ans: B
19. Match the following:
List-I List-II
(i) Poisson distribution I. Mean is greater than variance
(ii) Normal distribution II. Mean & Variance are same
(iii) Chi-Square distribution III. Symmetric
(iv) Binomial distribution IV. Positively skewed
Codes:
(i) (ii) (iii) (iv)
(A) II I III IV
(B) IV I III II
(C) II III IV I
(D) IV II I III
Ans: C
20. A critical activity is defined as one whose
(A) Total float is zero.
(B) Free float is zero.
(C) Duration is the longest.
(D) Duration is the smallest.
Ans: A
21. In the buying decision process, what is the term used for a person who first suggests buying the product or service?
(A) Influencer
(B) Initiator
(C) Decider
(D) Buyer
Ans: B
22. Strategies formulated to convert a sick unit to healthy is referred to:
(A) Turnaround
(B) Expansion
(C) Diversification
(D) Stabilisation
Ans: A
23. Which one is an international credit rating agency?
(A) Mc Kinsey
(B) B C G
(C) Standard and poor
(D) I M F
Ans: C
24. Ethical challenges may arise on account of
(A) Failure of personal character, conflict of personal value & organisational goals and conflict of organisational goals and social values
(B) Hazardous but popular products
(C) Both (A) and (B)
(D) None of the above
Ans: C
25. Under the Walter Model, if the rate of return is greater than the cost of capital:
(A) Price per share does not vary with the increase or decrease in dividend pay-out ratio.
(B) Price per share increases as the dividend pay-out ratio increases.
(C) Price per share increases as the dividend pay-out ratio decreases.
(D) None of the above.
Ans: C
26. Which one of the following is not a qualitative forecasting method?
(A) Educated guess
(B) Executive Committee Consensus
(C) Delphi method
(D) Linear regression method
Ans: D
27. Statement I: Mean (–X) chart do not give the desired result about process variability.
Statement II: Range (R) chart monitors process variability.
(A) Statement I is correct, but Statement II is false.
(B) Statement II is correct, but Statement I is false.
(C) Both Statements I and II are correct.
(D) Both Statements I and II are false.
Ans: C
28. Which one is not a part of control charts for attributes?
(A) P-chart
(B) σ-chart
(C) np-chart
(D) c-chart
Ans: B
29. There are different phases in a Operations Research Project. They are
(i) Research phase
(ii) Action phase
(iii) Judgement phase
The correct sequence of these phases is
(A) (i), (ii), (iii)
(B) (iii), (i), (ii)
(C) (ii), (iii), (i)
(D) (iii), (ii), (i)
Ans: B
30. The Graphical method can be used to solve
(A) A Linear Programming Problem (LPP) with all integer data.
(B) A LPP with two decision variables.
(C) Any LPP.
(D) A transportation problem with two origins and two destinations.
Ans: B
31. A vendor can make a profit of Rs. 3,000 with a probability of 0.4 or make a loss of Rs. 1,000 with a probability of 0.6. What is his expected profit?
(A) Rs. 600
(B) Rs. 800
(C) Rs. 1,000
(D) Rs. 500
Ans: A
32. If the sample size is less than 50, which non parametric test can be used to test the independence of attributes?
(A) Chi-square test
(B) Fisher Irwin test
(C) Cochran Q test
(D) Kruskal Wallis test
Ans: B
33. Match the items given in List-I with most appropriate options given in List-II.
List – I List – II
(a) Centroid Method (i) Multiple Regression
(b) Hierarchical Method (ii) Factor Analysis
(c) Relationship between a single metric dependent and two or more independent variables (iii) MANOVA
(d) The main and interactive effects of categorical variables on multiple dependent interval variables. (iv) Cluster Analysis
Codes:
(a) (b) (c) (d)
(A) (iv) (ii) (i) (iii)
(B) (ii) (iv) (i) (iii)
(C) (ii) (iv) (iii) (i)
(D) (iv) (iii) (i) (ii)
Ans: B
34. Identify the window not associated with SPSS.
(A) Editor
(B) Syntax
(C) Output
(D) Format Cells
Ans: D
35. Match the items given in Column-A with the items given in Column-B.
Column – A
Column - B
(a) A process to upgrade the quality of the data before it is moved into a data warehouse. (i) Pattern recognition
(b) A system that is used to run the business in real time and is based on current data. (ii) Data Scrubbing
(c) A critical success factor in data mining of large data store. (iii) Operational system
Codes:
(a) (b) (c)
(A) (ii) (iii) (i)
(B) (iii) (ii) (i)
(C) (i) (ii) (iii)
(D) (ii) (i) (iii)
Ans: A
36. In BCG Matrix which division represents the organisation’s best long-run opportunities for growth and profitability?
(A) Question marks
(B) Stars
(C) Cash Cows
(D) Dogs
Ans: B
37. In a comprehensive strategy formulation framework which matrix reveals the relative attractiveness of alternative strategies and thus provides objective basis for selecting specific strategies.
(A) SPACE Matrix
(B) SWOT Matrix
(C) QSPM Matrix
(D) Competitive Profile Matrix (CPM)
Ans: C
38. Stage 2 of strategy formulation consists of
(A) EFE Matrix, the IFE Matrix and the Competitive Profile Matrix (CPM).
(B) SWOT Matrix, SPACE Matrix, BCG Matrix, the Internal- External (IE) Matrix, and the Grand Strategy Matrix.
(C) Quantitative Strategic Planning Matrix (QSPM).
(D) EFE Matrix, the IFE Matrix and Quantitative Strategic Planning Matrix (QSPM).
Ans: B
39. Match the following:
Term Explanation
a. Strategy 1. Enduring statements of purpose that distinguish one business from other simple firms.
b. Vision 2. Specific results that an organization seeks to achieve.
c. Mission 3. What do we want to become?
d. Objectives 4. Means by which long term objectives will be achieved.
Codes:
a b c d
(A) 4 3 1 2
(B) 4 2 3 1
(C) 1 3 2 4
(D) 1 2 3 4
Ans: A
40. Match the following:
List – I List – II
(a) Italian Culture i. Importance on group loyalty and consensus
(b) American Culture ii. Employment as workers of those who are agreeable, respectful and obedient rather than innovative, creative and independent.
(c) Mexican Culture iii. Willing to do business with individuals they do not know.
(d) Japanese Culture iv. A culture where in you do not soften up executives with praise before criticize.
Codes:
a b c d
(A) i ii iii iv
(B) iv iii ii i
(C) ii iii iv i
(D) iii iv i ii
Ans: B
41. An Entrepreneur who is dominated more by customs, religions, traditions and past practices and he is not ready to take any risk is called as
(A) Drone Entrepreneur
(B) Adoptive Entrepreneur
(C) Fabian Entrepreneur
(D) Innovative Entrepreneur
Ans: C
42. “Poverty is an artificial creation. It does not belong to human civilization and we can change that and can make people come out of poverty through redesigning our institutions and policies.” This preamble refers to
(A) Women Entrepreneurship
(B) Corporate Entrepreneurship
(C) Social Entrepreneurship
(D) None of the above
Ans: C
43. Match the following:
List – I List – II
(Subject) (Technique)
a. Entrepreneurship 1. Innovation
b. Marketing 2. Promotion Mix
c. Inventory Management 3. Reorder Level
d. HR Planning 4. Appraisals
Codes:
a b c d
(A) 1 3 2 4
(B) 1 2 3 4
(C) 4 3 2 1
(D) 4 2 3 1
Ans: B
44. _______ means identifying and imitating the best in the world at specific tasks and functions.
(A) Quality circle
(B) Outsourcing
(C) Bench marking
(D) Continuous Improvement
Ans: C
45. Match the following:
(a) Action planning (i) New Actions are taken and old habits are broken.
(b) Accountability (ii) It is the periodic review of what has already been executed.
(c) Working the plan (iii) It is the art of delegation to implement a business plan.
(d) Reviewing the progress (iv) Making decisions relating to the order in which the Business plan is implemented.
Codes:
(a) (b) (c) (d)
(A) (ii) (iii) (iv) (i)
(B) (iv) (iii) (i) (ii)
(C) (i) (iv) (iii) (ii)
(D) (iii) (iv) (ii) (i)
Ans: B
46. Which of the following duties is not a general duty of directors of a company?
(A) Duty of good faith
(B) Duty of care
(C) Duty to attend Board Meeting
(D) Duty not to delegate
Ans: C
47. The principles to be followed for corporate social responsibility are
(A) involvement of stakeholders.
(B) maintaining transparency in reporting.
(C) independent verification of policies and outcome.
(D) All of the above.
Ans: D
48. Match the following:
List – I List - II
(a) Value (i) Aham Brahmasmi
(b) Unethical behaviour (ii) Recycling Waste
(c) Indian ethos (iii)Bribery
(d) Environmental responsibility (iv) Trust worthiness
Codes:
(a) (b) (c) (d)
(A) (i) (iii) (ii) (iv)
(B) (iv) (iii) (i) (ii)
(C) (ii) (iii) (iv) (i)
(D) (i) (iii) (iv) (ii)
Ans: B
49. The obligation of an organization behave in a ethical way is known as
(A) Knowledge about ethics
(B) Social responsibility of business
(C) Organisational behaviour
(D) Business without ethics
Ans: B
50. Identify the correct sequence of steps in a value identification process:
(i) Define the role of executive in leading the staff.
(ii) Learn about and discuss the power of shared values.
(iii) Obtain consensus that the leaders are committed to creating value based workplace.
(iv) Provide written material the executives can share with their reporting staff.
Codes:
(A) (i), (ii), (iii) and (iv)
(B) (iv), (ii), (iii) and (i)
(C) (ii), (iii), (i) and (iv)
(D) (ii), (iii), (iv) and (i)
Ans: C
51. Statement 1: The IE Matrix is similar to the BCG Matrix in that both tools involve plotting organisation divisions in a schematic diagram.
Statement 2: The BCG Matrix requires more information about the divisions than the IE matrix.
(A) Statements 1 and 2 both are correct.
(B) Statements 1 and 2 both are incorrect.
(C) Statement 1 is correct, but statement 2 is incorrect.
(D) Statement 1 is incorrect, but statement 2 is correct.
Ans: C
52. Match the following:
a. Individual within (Psychological) 1. Interpretations that third parties make regarding contractual terms.
b. Group within (Normative) 2. Broad beliefs and obligations associated with society’s culture.
c. Individual outside (implied) 3. Beliefs that individuals hold, regarding promises made, accepted and relied on between and another themselves.
d. Group outside (Social) 4. The shared psychological contract that emerges when members of a social group/organization/ work unit hold.
Codes:
a b c d
(A) 1 2 3 4
(B) 3 4 1 2
(C) 2 3 4 1
(D) 4 3 2 1
Ans: B
53. Statement 1: SWOT involves specifying the objectives of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieve that objective.
Statement 2: Setting the objectives should be done after the SWOT analysis has been performed.
(A) Both the statements are correct.
(B) Statement 1 is correct, but statement 2 is incorrect.
(C) Statement 1 is incorrect, but statement 2 is correct.
(D) Both the statements are incorrect.
Ans: A
54. The three disciplines of WTO agreements are
(A) International trade in goods, international transactions in services and protection of intellectual property rights.
(B) International trade in goods, international transaction in services and protection of interest of MNCs.
(C) International trade in goods, international transaction in services and protection of interest of P.S. units.
(D) International trade in goods, international transaction in services and protection of interest of Domestic Government.
Ans: A
55. 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
56. Arrange the Entrepreneurial motivation factors on the basis of proper sequences.
(A) Need for achievement, Locus of control, vision, desire for independence, passion and drive.
(B) Locus of control, vision, desire for independence, passion, drives and need for achievement.
(C) Vision, desire for independence, passion, drive, locus of control and need for achievement.
(D) Desire for independence, need for achievement, and locus of control, vision, passion and drive.
Ans: A
57. The main function of venture capitalist is to
(A) Provide funds to the steps necessary to establish the commercial viability of a new product, process or service.
(B) Provide funds at all stages of marketing of new product, process or service.
(C) Provide funds at all stages of production of a new product, process or a service.
(D) Provide funds at all stages of Research of a new product, process or a service.
Ans: A
58. An industrial unit, according to RBI, is sick if
(A) Incurred cash loss in the previous accounting year.
(B) Likely to incur loss in the following year.
(C) Current ratio is less than 1: 1 with weak debt: equity ratio.
(D) All of the above.
Ans: D
59. SIDBI has been entrusted with the responsibility of
(A) Providing financial assistance to all sectors.
(B) Developing medium and large scale industry.
(C) Providing incentives to medium scale industry.
(D) Developing and supporting small business.
Ans: D
60. Match the following:
List – I List – II
(Innovation) (Refers to)
(a) Paradigm innovation (i) Changes in the things which are organization offers.
(b) Position innovation (ii) Changes in the ways in which they are created and delivered.
(c) Product innovation (iii) Changes in the context in which the products/ services are introduced.
(d) Process innovation (iv) Changes in the underlying mental models which frame what the organization does.
Codes:
(a) (b) (c) (d)
(A) (iv) (iii) (i) (ii)
(B) (i) (ii) (iii) (iv)
(C) (iii) (iv) (ii) (i)
(D) (ii) (i) (iv) (iii)
Ans: A
61. A Business Organization deals with product/service and has relationship with stakeholder which is being considered a part of ‘management discipline’ is known as
(A) Maximisation of Wealth
(B) Business Ethics
(C) Relationship Management
(D) Optimisation of Profits
Ans: B
62. Lawrence Kohlberg, in his six stage model of cognitive development, explains:
(A) Why people make different decisions in similar ethical situations?
(B) How people make decisions based on the stage of cognitive moral development?
(C) Both of the above.
(D) None of the above.
Ans: B
63. The Board of Directors can appoint
(i) Additional Director
(ii) Causal Director
(iii) Alternative Director
(iv) Nominee Director
(A) (i), (ii) and (iii)
(B) (ii), (iii) and (iv)
(C) (iii), (iv) and (i)
(D) (iv), (i) and (ii)
Ans: A
64. Assertion (A): The poor compliance to environmental regulations is attributed to tax enforcement despite regulatory framework.
Reasoning (R): The Government is not capable of enforcing full compliance.
(A) (A) is correct and (R) is the right explanation of (A).
(B) (A) and (R) both are correct, but (R) is not the right explanation of (A).
(C) (A) is correct, but (R) is not correct.
(D) Both (A) and (R) are incorrect.
Ans: D
65. Match the following:
List – I List – II
(a) Work ethics (i) includes taking care of issues like air and water pollution, toxic waste disposal etc.
(b) Values (ii) is an organisation’s obligation to benefit society in ways that transcend the prime business objectives of maximizing profit.
(c) Environmental responsibility of a business (iii) is a characteristic attitude of a group towards what constitutes the morality of work.
(d) Corporate Social Responsibility (iv) determine the overall personality of an individual and the organization that he is working for.
Codes:
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (iv) (iii) (ii) (i)
(C) (iii) (iv) (i) (ii)
(D) (ii) (i) (iv) (iii)
Ans: C
66. The degree to which the value of future cash transactions can be affected by exchange rate fluctuations is referred to as
(A) Economic exposure
(B) Transaction exposure
(C) Translation exposure
(D) None of the above
Ans: B
67. Forward Premium or Discount can be computed by which of the following formulae?
(A) (Spot rate – Forward rate) / Spot rate × 360 / Future point in time
(B) (Spot rate – Forward rate) / forward rate × 360 / Future point in time
(C) (Forward rate – Spot rate) / Forward rate × 360 / Future point in time
(D) (Forward rate – Spot rate) / Spot rate × 360 / Future point in time
Ans: B
68. Which of the following is not a product technology transfer?
(A) Collaboration in R and D.
(B) Transfer of product designs and technical specifications.
(C) Feedback on product performance.
(D) Provision of machinery and equipment to suppliers.
Ans: D
69. Stops involved in settling disputes under WTO is given below. Arrange them in correct order.
(i) Panel set up and appointment of panelists.
(ii) Final Report to WTO members.
(iii) Final Report to partners.
(iv) Consultations, mediations, etc.
(v) Adoption of Report by Dispute Settlement Body.
Codes:
(A) (i), (iv), (ii), (iii), (v)
(B) (iv), (i), (ii), (iii), (v)
(C) (iv), (i), (iii), (ii), (v)
(D) (i), (ii), (iii), (v), (iv)
Ans: C
70. From the statements given below, choose the correct answer:
Statement I: To become a global corporation, a firm passes through different stages, via, capturing markets abroad, establishing joint venture/subsidiaries abroad, developing into MNCs and moving towards global mode of operation.
Statement II: Government support is not a pre-requisite for the successful globalization of the business.
(A) Statement I is correct and II is wrong.
(B) Statements I and II are correct.
(C) Statements I and II are wrong.
(D) Statement I is wrong, but II is correct.
Ans: A
71. The main function(s) of WTO is/are:
(A) To handle trade disputes constructively.
(B) To help promote peace among business community.
(C) To provide rules that make life easier for all people involved in foreign trade.
(D) All of the above.
Ans: D
72. Match the items of the following two lists and give the correct code for the following:
List – I List – II
a. Scale of Preferences i. Indifference Curves
b. Inadequate Explanation of Giffen Goods ii. Ordinal Utility
c. Curves always slope negatively iii. Demand Curves
d. Inseparation of Income and Substitution affects iv. Marshallian Utility Analysis
Codes:
a b c d
(A) ii i iii iv
(B) i iii iv ii
(C) ii iv i iii
(D) iii ii iv i
Ans: C
73. Cost-plus pricing is not suitable for
(A) Monopoly Pricing
(B) Product Tailoring
(C) Refusal Pricing
(D) Monopsony Pricing
Ans: A
74. Indicate the correct code matching the items of List – I with those in List – II as follows:
List – I List – II
a. Resorting to New Technology i. Cost reduction through output expansion
b. Excess Capacity of the Plant ii. Constant cost despite output expansion
c. Employees’ Training Centres iii. Internal Economies
d. Reserve Capacity of the Plant iv. External Economies
Codes:
a b c d
(A) i iii ii iv
(B) iii i iv ii
(C) iv ii i iii
(D) ii iv iii i
Ans: B
75. In a mixed economy, the central problems are solved through which of following?
(A) Price mechanism
(B) Regulated market mechanism
(C) Market mechanism and economic planning
(D) Economic planning and control
Ans: C
76. Indicate the correct code matching the items in List – I with those in List – II as follows:
List – I List – II
a. Excess of aggregate investment over aggregate savings, at full employment level i. Stability of National Income
b. Equality of aggregate income and savings ii. Recessionary gap
c. Comparatively greater decrease in income following a decrease in investment iii. Multiplier effect
d. Aggregate expenditure being less than national income at full employment level iv. Inflationary gap
Codes:
a b c d
(A) ii iv i iii
(B) iv i iii ii
(C) iii ii iv i
(D) i iii ii iv
Ans: B
77. The study of gestures and body postures for their impact on communication is known as:
(A) Kinesics
(B) Proximics
(C) Semantics
(D) Informal channels
Ans: A
78. Which of the following deals with “what, why, when and how” tasks to be performed?
(A) Job Analysis
(B) Job Description
(C) Job Specification
(D) Job Enrichment
Ans: B
79. According to Henry Mintberg, managers perform three roles. Indicate the one role which is not among them.
(A) Decisional
(B) Informational
(C) Interpersonal
(D) Supervisory
Ans: D
80. The Ringlemann effect describes
(A) The tendency of groups to make risky decisions
(B) Social loafing
(C) Social facilitation
(D) The satisfaction of members’ social needs
Ans: B
81. The term “workforce diversity” refers to differences in race, age, gender, ethnicity, and _______ among people at work.
(A) Social status
(B) Personal wealth
(C) Able-bodiedness
(D) Political preference
Ans: C
82. Match the following and indicate the correct code:
List – I List – II
a. A form of learning through association that involves the manipulation of stimuli to influence behaviour i. Stimulus
b. The process of controlling behaviour by manipulating its consequences ii. Reinforcement
c. Something that incites action iii. Operant conditioning
d. The administration of a consequence as a result of behaviour iv. Classical conditioning
Codes:
a b c d
(A) i ii iii iv
(B) iv iii ii i
(C) iii iv i ii
(D) iv iii i ii
Ans: D
83. Which of the following techniques permits the complainant to remain anonymous?
(A) The exit interview
(B) The gripe-box system
(C) The opinion survey
(D) None of the above
Ans: B
84. Which of the following Acts has a direct relevance for grievance handling practices?
(A) The Industrial Employment (Standing Order) Act, 1946
(B) The Industrial Disputes Act, 1947
(C) The Factories Act, 1948
(D) All of the above
Ans: D
85. That the authority rests solely with the management with no right to anyone to challenge is the basis of the
(A) Pluralist Approach
(B) Systems Approach
(C) Unitary Approach
(D) Social Action Approach
Ans: C
86. Which of the following is not a welfare provision under the Factories Act, 1948?
(A) Canteen
(B) Crèches
(C) First Aid
(D) Drinking water
Ans: D
87. A person who has ultimate control over the affairs of the factory under the Factories Act, 1948 is called
(A) Occupier
(B) Manager
(C) Chairman
(D) Managing Director
Ans: A
88. In which of the following methods grievances are ascertained at the time of employees quitting the organisation?
(A) The exit interview method
(B) The gripe-box system
(C) The open-door policy
(D) Opinion surveys
Ans: A
89. Redressal of employees’ grievances covers
(A) Positive attitude towards employees’ grievances and readiness to help
(B) Expediting machinery for resolving employees’ grievances
(C) Equitable salary system for all
(D) Both (A) and (B)
Ans: D
90. Which of the following are most closely interconnected?
(A) Leadership and organization structure
(B) Leadership and motivation
(C) Leadership and planning
(D) Leadership and performance appraisal
Ans: B
91. _______ is defined as disputes between parties submitted and decided by a neutral third party.
(A) Collective Bargaining
(B) Affirmation Action
(C) Arbitration
(D) Negotiation
Ans: C
92. The appropriate method to derive the growth rate according to Dividend- Growth Model for equity valuation is
(A) Growth rate of sales over a period of time
(B) Plough-back ratio multiplied with return-on-equity
(C) Plough-back ratio multiplied with net profit margin
(D) Growth rate of fixed assets over a period of time
Ans: B
93. Match the items given in List – I and List – II and indicate the correct code:
List – I List – II
a. The technique used in examining the effect of change in one variable at a time i. Hillier Model
b. The process of developing the frequency distribution of Net Present Value ii. Sensitivity Analysis
c. The technique used in examining the chances of Net Present Value being greater than zero iii. Decision tree
d. The technique used when investment at a future date is to be decided based on the probable outcome of previous investment iv. Simulation
Codes:
a b c d
(A) i ii iv iii
(B) ii iv i iii
(C) iii iv i ii
(D) iv i ii iii
Ans: B
94. Match the correct option for each ofthe following approaches of Capital structure theories:
a. The Net Income Approach i. The market value of the firm is not affected by changes in the capital structure
b. The Net Operating Income Approach ii. Declining weighted-average cost of capital
c. The Modigliani & Miller Proposition – I iii. The firms prefer to rely on internal accruals followed by debt finance and external finance
d. The Pecking Order Theory iv. The value of the firm depends on the earnings and risk of its assets rather than the way the assets have been financed
Codes:
a b c d
(A) i iii ii iv
(B) iv ii iii i
(C) ii i iv iii
(D) iii iv i ii
Ans: C
95. Match the following items in List – A with the most appropriate options from List – B:
List-A List-B
a. A lender buys securities to protect him from a falling interest rate 1. Interest rate collar
b. A borrower buys securities to protect himself from rising interest rate 2. Interest rate cap
c. A combination of interest rate cap and floor 3. Interest rate corridor
d. A combination of two or more interest rate caps 4. Interest rate floor
Codes:
a b c d
(A) 2 4 3 1
(B) 4 2 1 3
(C) 4 2 3 1
(D) 3 2 1 4
Ans: B
96. The form of learning in which people acquire new behaviours by systematically observing the rewards and punishments given to others is known as
(A) Operant conditioning
(B) Positive reinforcement
(C) Modelling
(D) Law of effect
Ans: A
97. Diffusion of routine information takes place through
(A) Downward Communication
(B) Upward Communication
(C) Horizontal Communication
(D) External Communication
Ans: A
98. An integrated group of activities to bring about a change is known as
(A) Organisation development
(B) Interventions
(C) OCTAPACE
(D) Collaborative culture
Ans: A
99. Match the following:
a. Motivation is a function of fairness in social exchanges. 1. Expectancy Theory
b. People are motivated to behave in ways that produce valued outcomes. 2. Alderfer’s ERG Theory
c. Determining specific levels of performance for workers to attain and then striving to attain them. 3. Equity Theory
d. When people are frustrated by their inability to meet needs at the next higher level in the hierarchy, they regress to the next lower category of needs and intensify their desire to gratify these needs. 4. Goal- Setting Theory
Codes:
a b c d
(A) 1 2 3 4
(B) 4 3 2 1
(C) 3 1 4 2
(D) 3 4 1 2
Ans: C
100. Match the following:
a. Self-efficacy 1. Determining specific levels of performance for workers to attain them.
b. Goal setting 2. The belief that one’s efforts will positively influence one’s performance.
c. Expectancy 3. People strive to maintain ratio of their own outcomes to their own inputs that are equal to that of those with whom they compare themselves.
d. Equity Theory 4. One’s belief about having the capacity to perform a task.
Codes:
a b c d
(A) 1 2 3 4
(B) 4 1 2 3
(C) 3 4 1 2
(D) 2 3 4 1
Ans: B
Statement 2: The BCG Matrix requires more information about the divisions than the IE matrix.
(A) Statements 1 and 2 both are correct.
(B) Statements 1 and 2 both are incorrect.
(C) Statement 1 is correct, but statement 2 is incorrect.
(D) Statement 1 is incorrect, but statement 2 is correct.
Ans: C
52. Match the following:
a. Individual within (Psychological) 1. Interpretations that third parties make regarding contractual terms.
b. Group within (Normative) 2. Broad beliefs and obligations associated with society’s culture.
c. Individual outside (implied) 3. Beliefs that individuals hold, regarding promises made, accepted and relied on between and another themselves.
d. Group outside (Social) 4. The shared psychological contract that emerges when members of a social group/organization/ work unit hold.
Codes:
a b c d
(A) 1 2 3 4
(B) 3 4 1 2
(C) 2 3 4 1
(D) 4 3 2 1
Ans: B
53. Statement 1: SWOT involves specifying the objectives of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieve that objective.
Statement 2: Setting the objectives should be done after the SWOT analysis has been performed.
(A) Both the statements are correct.
(B) Statement 1 is correct, but statement 2 is incorrect.
(C) Statement 1 is incorrect, but statement 2 is correct.
(D) Both the statements are incorrect.
Ans: A
54. The three disciplines of WTO agreements are
(A) International trade in goods, international transactions in services and protection of intellectual property rights.
(B) International trade in goods, international transaction in services and protection of interest of MNCs.
(C) International trade in goods, international transaction in services and protection of interest of P.S. units.
(D) International trade in goods, international transaction in services and protection of interest of Domestic Government.
Ans: A
55. 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
56. Arrange the Entrepreneurial motivation factors on the basis of proper sequences.
(A) Need for achievement, Locus of control, vision, desire for independence, passion and drive.
(B) Locus of control, vision, desire for independence, passion, drives and need for achievement.
(C) Vision, desire for independence, passion, drive, locus of control and need for achievement.
(D) Desire for independence, need for achievement, and locus of control, vision, passion and drive.
Ans: A
57. The main function of venture capitalist is to
(A) Provide funds to the steps necessary to establish the commercial viability of a new product, process or service.
(B) Provide funds at all stages of marketing of new product, process or service.
(C) Provide funds at all stages of production of a new product, process or a service.
(D) Provide funds at all stages of Research of a new product, process or a service.
Ans: A
58. An industrial unit, according to RBI, is sick if
(A) Incurred cash loss in the previous accounting year.
(B) Likely to incur loss in the following year.
(C) Current ratio is less than 1: 1 with weak debt: equity ratio.
(D) All of the above.
Ans: D
59. SIDBI has been entrusted with the responsibility of
(A) Providing financial assistance to all sectors.
(B) Developing medium and large scale industry.
(C) Providing incentives to medium scale industry.
(D) Developing and supporting small business.
Ans: D
60. Match the following:
List – I List – II
(Innovation) (Refers to)
(a) Paradigm innovation (i) Changes in the things which are organization offers.
(b) Position innovation (ii) Changes in the ways in which they are created and delivered.
(c) Product innovation (iii) Changes in the context in which the products/ services are introduced.
(d) Process innovation (iv) Changes in the underlying mental models which frame what the organization does.
Codes:
(a) (b) (c) (d)
(A) (iv) (iii) (i) (ii)
(B) (i) (ii) (iii) (iv)
(C) (iii) (iv) (ii) (i)
(D) (ii) (i) (iv) (iii)
Ans: A
61. A Business Organization deals with product/service and has relationship with stakeholder which is being considered a part of ‘management discipline’ is known as
(A) Maximisation of Wealth
(B) Business Ethics
(C) Relationship Management
(D) Optimisation of Profits
Ans: B
62. Lawrence Kohlberg, in his six stage model of cognitive development, explains:
(A) Why people make different decisions in similar ethical situations?
(B) How people make decisions based on the stage of cognitive moral development?
(C) Both of the above.
(D) None of the above.
Ans: B
63. The Board of Directors can appoint
(i) Additional Director
(ii) Causal Director
(iii) Alternative Director
(iv) Nominee Director
(A) (i), (ii) and (iii)
(B) (ii), (iii) and (iv)
(C) (iii), (iv) and (i)
(D) (iv), (i) and (ii)
Ans: A
64. Assertion (A): The poor compliance to environmental regulations is attributed to tax enforcement despite regulatory framework.
Reasoning (R): The Government is not capable of enforcing full compliance.
(A) (A) is correct and (R) is the right explanation of (A).
(B) (A) and (R) both are correct, but (R) is not the right explanation of (A).
(C) (A) is correct, but (R) is not correct.
(D) Both (A) and (R) are incorrect.
Ans: D
65. Match the following:
List – I List – II
(a) Work ethics (i) includes taking care of issues like air and water pollution, toxic waste disposal etc.
(b) Values (ii) is an organisation’s obligation to benefit society in ways that transcend the prime business objectives of maximizing profit.
(c) Environmental responsibility of a business (iii) is a characteristic attitude of a group towards what constitutes the morality of work.
(d) Corporate Social Responsibility (iv) determine the overall personality of an individual and the organization that he is working for.
Codes:
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (iv) (iii) (ii) (i)
(C) (iii) (iv) (i) (ii)
(D) (ii) (i) (iv) (iii)
Ans: C
66. The degree to which the value of future cash transactions can be affected by exchange rate fluctuations is referred to as
(A) Economic exposure
(B) Transaction exposure
(C) Translation exposure
(D) None of the above
Ans: B
67. Forward Premium or Discount can be computed by which of the following formulae?
(A) (Spot rate – Forward rate) / Spot rate × 360 / Future point in time
(B) (Spot rate – Forward rate) / forward rate × 360 / Future point in time
(C) (Forward rate – Spot rate) / Forward rate × 360 / Future point in time
(D) (Forward rate – Spot rate) / Spot rate × 360 / Future point in time
Ans: B
68. Which of the following is not a product technology transfer?
(A) Collaboration in R and D.
(B) Transfer of product designs and technical specifications.
(C) Feedback on product performance.
(D) Provision of machinery and equipment to suppliers.
Ans: D
69. Stops involved in settling disputes under WTO is given below. Arrange them in correct order.
(i) Panel set up and appointment of panelists.
(ii) Final Report to WTO members.
(iii) Final Report to partners.
(iv) Consultations, mediations, etc.
(v) Adoption of Report by Dispute Settlement Body.
Codes:
(A) (i), (iv), (ii), (iii), (v)
(B) (iv), (i), (ii), (iii), (v)
(C) (iv), (i), (iii), (ii), (v)
(D) (i), (ii), (iii), (v), (iv)
Ans: C
70. From the statements given below, choose the correct answer:
Statement I: To become a global corporation, a firm passes through different stages, via, capturing markets abroad, establishing joint venture/subsidiaries abroad, developing into MNCs and moving towards global mode of operation.
Statement II: Government support is not a pre-requisite for the successful globalization of the business.
(A) Statement I is correct and II is wrong.
(B) Statements I and II are correct.
(C) Statements I and II are wrong.
(D) Statement I is wrong, but II is correct.
Ans: A
71. The main function(s) of WTO is/are:
(A) To handle trade disputes constructively.
(B) To help promote peace among business community.
(C) To provide rules that make life easier for all people involved in foreign trade.
(D) All of the above.
Ans: D
72. Match the items of the following two lists and give the correct code for the following:
List – I List – II
a. Scale of Preferences i. Indifference Curves
b. Inadequate Explanation of Giffen Goods ii. Ordinal Utility
c. Curves always slope negatively iii. Demand Curves
d. Inseparation of Income and Substitution affects iv. Marshallian Utility Analysis
Codes:
a b c d
(A) ii i iii iv
(B) i iii iv ii
(C) ii iv i iii
(D) iii ii iv i
Ans: C
73. Cost-plus pricing is not suitable for
(A) Monopoly Pricing
(B) Product Tailoring
(C) Refusal Pricing
(D) Monopsony Pricing
Ans: A
74. Indicate the correct code matching the items of List – I with those in List – II as follows:
List – I List – II
a. Resorting to New Technology i. Cost reduction through output expansion
b. Excess Capacity of the Plant ii. Constant cost despite output expansion
c. Employees’ Training Centres iii. Internal Economies
d. Reserve Capacity of the Plant iv. External Economies
Codes:
a b c d
(A) i iii ii iv
(B) iii i iv ii
(C) iv ii i iii
(D) ii iv iii i
Ans: B
75. In a mixed economy, the central problems are solved through which of following?
(A) Price mechanism
(B) Regulated market mechanism
(C) Market mechanism and economic planning
(D) Economic planning and control
Ans: C
76. Indicate the correct code matching the items in List – I with those in List – II as follows:
List – I List – II
a. Excess of aggregate investment over aggregate savings, at full employment level i. Stability of National Income
b. Equality of aggregate income and savings ii. Recessionary gap
c. Comparatively greater decrease in income following a decrease in investment iii. Multiplier effect
d. Aggregate expenditure being less than national income at full employment level iv. Inflationary gap
Codes:
a b c d
(A) ii iv i iii
(B) iv i iii ii
(C) iii ii iv i
(D) i iii ii iv
Ans: B
77. The study of gestures and body postures for their impact on communication is known as:
(A) Kinesics
(B) Proximics
(C) Semantics
(D) Informal channels
Ans: A
78. Which of the following deals with “what, why, when and how” tasks to be performed?
(A) Job Analysis
(B) Job Description
(C) Job Specification
(D) Job Enrichment
Ans: B
79. According to Henry Mintberg, managers perform three roles. Indicate the one role which is not among them.
(A) Decisional
(B) Informational
(C) Interpersonal
(D) Supervisory
Ans: D
80. The Ringlemann effect describes
(A) The tendency of groups to make risky decisions
(B) Social loafing
(C) Social facilitation
(D) The satisfaction of members’ social needs
Ans: B
81. The term “workforce diversity” refers to differences in race, age, gender, ethnicity, and _______ among people at work.
(A) Social status
(B) Personal wealth
(C) Able-bodiedness
(D) Political preference
Ans: C
82. Match the following and indicate the correct code:
List – I List – II
a. A form of learning through association that involves the manipulation of stimuli to influence behaviour i. Stimulus
b. The process of controlling behaviour by manipulating its consequences ii. Reinforcement
c. Something that incites action iii. Operant conditioning
d. The administration of a consequence as a result of behaviour iv. Classical conditioning
Codes:
a b c d
(A) i ii iii iv
(B) iv iii ii i
(C) iii iv i ii
(D) iv iii i ii
Ans: D
83. Which of the following techniques permits the complainant to remain anonymous?
(A) The exit interview
(B) The gripe-box system
(C) The opinion survey
(D) None of the above
Ans: B
84. Which of the following Acts has a direct relevance for grievance handling practices?
(A) The Industrial Employment (Standing Order) Act, 1946
(B) The Industrial Disputes Act, 1947
(C) The Factories Act, 1948
(D) All of the above
Ans: D
85. That the authority rests solely with the management with no right to anyone to challenge is the basis of the
(A) Pluralist Approach
(B) Systems Approach
(C) Unitary Approach
(D) Social Action Approach
Ans: C
86. Which of the following is not a welfare provision under the Factories Act, 1948?
(A) Canteen
(B) Crèches
(C) First Aid
(D) Drinking water
Ans: D
87. A person who has ultimate control over the affairs of the factory under the Factories Act, 1948 is called
(A) Occupier
(B) Manager
(C) Chairman
(D) Managing Director
Ans: A
88. In which of the following methods grievances are ascertained at the time of employees quitting the organisation?
(A) The exit interview method
(B) The gripe-box system
(C) The open-door policy
(D) Opinion surveys
Ans: A
89. Redressal of employees’ grievances covers
(A) Positive attitude towards employees’ grievances and readiness to help
(B) Expediting machinery for resolving employees’ grievances
(C) Equitable salary system for all
(D) Both (A) and (B)
Ans: D
90. Which of the following are most closely interconnected?
(A) Leadership and organization structure
(B) Leadership and motivation
(C) Leadership and planning
(D) Leadership and performance appraisal
Ans: B
91. _______ is defined as disputes between parties submitted and decided by a neutral third party.
(A) Collective Bargaining
(B) Affirmation Action
(C) Arbitration
(D) Negotiation
Ans: C
92. The appropriate method to derive the growth rate according to Dividend- Growth Model for equity valuation is
(A) Growth rate of sales over a period of time
(B) Plough-back ratio multiplied with return-on-equity
(C) Plough-back ratio multiplied with net profit margin
(D) Growth rate of fixed assets over a period of time
Ans: B
93. Match the items given in List – I and List – II and indicate the correct code:
List – I List – II
a. The technique used in examining the effect of change in one variable at a time i. Hillier Model
b. The process of developing the frequency distribution of Net Present Value ii. Sensitivity Analysis
c. The technique used in examining the chances of Net Present Value being greater than zero iii. Decision tree
d. The technique used when investment at a future date is to be decided based on the probable outcome of previous investment iv. Simulation
Codes:
a b c d
(A) i ii iv iii
(B) ii iv i iii
(C) iii iv i ii
(D) iv i ii iii
Ans: B
94. Match the correct option for each ofthe following approaches of Capital structure theories:
a. The Net Income Approach i. The market value of the firm is not affected by changes in the capital structure
b. The Net Operating Income Approach ii. Declining weighted-average cost of capital
c. The Modigliani & Miller Proposition – I iii. The firms prefer to rely on internal accruals followed by debt finance and external finance
d. The Pecking Order Theory iv. The value of the firm depends on the earnings and risk of its assets rather than the way the assets have been financed
Codes:
a b c d
(A) i iii ii iv
(B) iv ii iii i
(C) ii i iv iii
(D) iii iv i ii
Ans: C
95. Match the following items in List – A with the most appropriate options from List – B:
List-A List-B
a. A lender buys securities to protect him from a falling interest rate 1. Interest rate collar
b. A borrower buys securities to protect himself from rising interest rate 2. Interest rate cap
c. A combination of interest rate cap and floor 3. Interest rate corridor
d. A combination of two or more interest rate caps 4. Interest rate floor
Codes:
a b c d
(A) 2 4 3 1
(B) 4 2 1 3
(C) 4 2 3 1
(D) 3 2 1 4
Ans: B
96. The form of learning in which people acquire new behaviours by systematically observing the rewards and punishments given to others is known as
(A) Operant conditioning
(B) Positive reinforcement
(C) Modelling
(D) Law of effect
Ans: A
97. Diffusion of routine information takes place through
(A) Downward Communication
(B) Upward Communication
(C) Horizontal Communication
(D) External Communication
Ans: A
98. An integrated group of activities to bring about a change is known as
(A) Organisation development
(B) Interventions
(C) OCTAPACE
(D) Collaborative culture
Ans: A
99. Match the following:
a. Motivation is a function of fairness in social exchanges. 1. Expectancy Theory
b. People are motivated to behave in ways that produce valued outcomes. 2. Alderfer’s ERG Theory
c. Determining specific levels of performance for workers to attain and then striving to attain them. 3. Equity Theory
d. When people are frustrated by their inability to meet needs at the next higher level in the hierarchy, they regress to the next lower category of needs and intensify their desire to gratify these needs. 4. Goal- Setting Theory
Codes:
a b c d
(A) 1 2 3 4
(B) 4 3 2 1
(C) 3 1 4 2
(D) 3 4 1 2
Ans: C
100. Match the following:
a. Self-efficacy 1. Determining specific levels of performance for workers to attain them.
b. Goal setting 2. The belief that one’s efforts will positively influence one’s performance.
c. Expectancy 3. People strive to maintain ratio of their own outcomes to their own inputs that are equal to that of those with whom they compare themselves.
d. Equity Theory 4. One’s belief about having the capacity to perform a task.
Codes:
a b c d
(A) 1 2 3 4
(B) 4 1 2 3
(C) 3 4 1 2
(D) 2 3 4 1
Ans: B