MANAGEMENT- PAGE 7
MANAGEMENT MCQs
1. The elasticity of demand is greater than unity, when
(A) Percentage change in demand is equal to the percentage change in price.
(B) Percentage change in demand is more than the percentage change in price.
(C) Percentage change in demand is less than the percentage change in price.
(D) There is change in price.
Ans: B
2. GDP includes which of the following measures?
(A) The size of a population that must share a given output within one year.
(B) The negative externalities of the production process of a nation within one year.
(C) The total monetary value of all final goods and services produced within a nation within one year.
(D) The total monetary value of goods and services including barter transactions within a nation in one year.
Ans: C
3. If the equation y = 5 + 0.6x was graphed, the
(A) Slope would be – 5
(B) Vertical intercept would be + 0.6
(C) Slope would be + 5
(D) Slope would be + 0.6
Ans: D
4. Match the following:
List – I List – II
(a) The producers will offer more of a product at a higher price. (i) Market in equilibrium
(b) The quantum that producers want to sell is equal to the quantum that consumers want to buy. (ii) Law of supply
(c) The sensitivity of consumers to price changes. (iii) Co-efficient of price elasticity of demand.
(d) Percentage change in quantity demanded to percentage change in price. (iv) Price elasticity of demand
Codes:
(a) (b) (c) (d)
(A) (ii) (i) (iii) (iv)
(B) (iv) (i) (ii) (iii)
(C) (ii) (iv) (iii) (i)
(D) (ii) (i) (iv) (iii)
Ans: A
5. Statement I: The slope of an indifference curve is the Marginal Rate of Substitution in the consumption (MRSc), which is increasing.
Statement II: The slope of the budget line is ratio of the prices of two goods and is the Marginal Rate of Substitution in exchange (MRSe)
(A) Statement 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 not correct, but II is correct.
Ans: D
6. Forming a fixed opinion or attitude towards a single person or object is termed as
(A) Perceptual defense
(B) Stereo typing
(C) The Halo effect
(D) The perceptual set
Ans: C
7. Which of the following best describes the theory X?
(A) People are committed to their responsibilities.
(B) Motivation is a result of rational behaviour towards attaining goals.
(C) The perceived relationship between a given level of efforts and an expected performance.
(D) None of the above.
Ans: D
8. Hawthorne experiments were conducted at
(A) Hawthorne Electric Company
(B) Western Electric Company
(C) General Electric Company
(D) Eastern Electric Company
Ans: B
9. Match the following:
OD Interventions Grouping Term Proposed by
a. OD Cube 1. French and Bell
b. Consul cube 2. Freneh and Bell
c. Intervention families 3. Blake and Mouton
d. Four quadrants 4. Schmuck and Miles
Codes:
a b c d
(A) 4 3 2 1
(B) 3 4 2 1
(C) 2 1 3 4
(D) 1 2 4 3
Ans: A
10. Match the following:
a. Stability 1. Number of subordinates that report to one supervisor.
b. Strategy 2. The whole is greater than the sum of its parts.
c. Synergy 3. Plans for the allocation of firm’s scarce resources to reach identified goals in time.
d. Span of control 4. Employees should not be moved frequently from one job to another
Codes:
a b c d
(A) 4 3 2 1
(B) 3 4 1 2
(C) 2 3 4 1
(D) 1 2 3 4
Ans: A
11. Role of Human Resource Manager is
(A) Advisory
(B) Mediator Role
(C) Representative Role
(D) All of the above
Ans: D
12. Which statement is true?
(A) Job analysis is a group of positions that are similar as to kind and level of work.
(B) A promotion is the advancement of an employee to a better job better in terms of greater responsibilities, more prestige or status, greater skill and especially, increase rate of pay or salary.
(C) A promotion is the vertical transfer of an employee.
(D) All of the above
Ans: B
13. Job is defined as
(A) Set of activities performed in the organization.
(B) Set of activities similar as to kind of work.
(C) Set of position similar as to nature and kind of work.
(D) None of these.
Ans: C
14. The benefit of paraphrasing in Employee Appraisal is that it
(A) Suggests interest and active listening.
(B) Clarify and convey to the rater that you are listening actively.
(C) Shows that you are trying to understand the emotional aspect of the work place.
(D) All of the above.
Ans: B
15. An employee can be laid off when the organization has
(A) Acquired labour more than the required.
(B) Purchased raw material more than the immediate required.
(C) Breakdown of machinery.
(D) All of the above.
Ans: C
16. Match the following:
List – I List – II
(Items of HRM) (Features)
a. Human Resource Planning 1. Forecast man power needs based strategies of the trend.
b. Selection 2. Use the criteria and measures developed to match individual skills in the job requirements.
c. Advancement 3. Promotion.
d. Industrial relations 4. Amicable and harmonious working in the organization.
Codes:
a b c d
(A) 1 2 3 4
(B) 1 4 3 2
(C) 3 1 4 2
(D) 4 1 3 2
Ans: A
17. Which one of the following is a disadvantage of having expatriate employees to staff international subsidiaries?
(A) Brings cultural similarities with parent company.
(B) Gives employees a multinational orientation.
(C) Attempts to establish a foreign culture to the company.
(D) Provides broader global perspective.
Ans: C
18. Whistle Blowing is the situation wherein an employee
(A) Causes indiscipline in the organization.
(B) Discloses other employees’ illegal immoral or illegitimate activities.
(C) Discloses the employer’s illegal immoral or illegitimate activities.
(D) All of the above.
Ans: C
19. Distributive bargaining may be explained as
(A) Bargaining wherein both parties are willing to negotiate over wages, hours and conditions of employment.
(B) Bargaining that focuses on convincing the other party that the cost of disagreeing with the proposed terms would be very high.
(C) Bargaining that focuses on convincing the other party that the benefits of agreeing with the proposed terms would be very high.
(D) None of the above.
Ans: B
20. Match the following:
a. Balancing Equity 1. The perceived fairness of the pay structure within a firm.
b. Internal Equity 2. The perceived fairness in pay relative to what other employers are paying for the same type of labour.
c. Individual Equity 3. The perceived fairness in establishment of internal and external pay equity.
d. External Equity 4. The perceived fairness of individual pay decisions.
Codes:
a b c d
(A) 3 4 2 1
(B) 1 2 3 4
(C) 2 4 1 3
(D) 4 1 3 2
Ans: D
21. Which of the below features is not wealth maximization objective of Financial Management?
(A) Considers both quantity and quality dimensions of benefits.
(B) Based on the concept of cash flows generated by the decision rather than accounting profit.
(C) Decision should be oriented to the maximization of profits.
(D) Focus is on the value to the owners or suppliers of equity capital.
Ans: C
22. Financial Break-even Level of EBIT is one at which
(A) EPS is one
(B) EPS is infinite
(C) EPS is zero
(D) EPS is negative
Ans: C
23. Which of the following is not considered by Miller-Orr Model?
(A) Variability in cash requirement
(B) Cost of transaction
(C) Holding cash
(D) Total annual requirement of cash
Ans: B
24. If the minimum stock level and average stock level of material A are 4000 and 9000 units respectively, what is the Reorder quantity?
(A) 8000 units
(B) 10,000 units
(C) 11,000 units
(D) 9,000 units
Ans: D
25. According to Lintner Model, factors affecting dividend of current year are
(A) DPS of previous year, EPS, target pay-out ratio and adjustment rate.
(B) EBIT, interest rate and retention ratio.
(C) P/E ratio, retention ratio and pay-out ratio.
(D) E/P ratio, pay-out ratio and rate of interest on it.
Ans: A
26. 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
27. 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
28. 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
29. 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
30. 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
31. 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
32. 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
33. 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
34. 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
35. 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
36. 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
37. 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
38. 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
39. 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
40. 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
41. 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
42. 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
43. 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
44. 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
45. 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
46. Which ratio explains that how much portion of earning is distributed in the form of dividend?
(A) Dividend – Debt Ratio
(B) Equity – Debt Ratio
(C) Pay-out Ratio
(D) Earning – Yield Ratio
Ans: C
47. Modern approach to financial management is
I. The total fund requirement of the firm.
II. The asset to be acquired.
III. Payment of dividend to shareholders.
(A) I only
(B) II only
(C) II & III only
(D) I, II & III
Ans: D
48. Participating preference shares are those which participate in the
(A) General meeting of the company
(B) Voting
(C) Profits over and above their fixed dividend
(D) Management of the company
Ans: C
49. Which of the following is one of the critical assumptions of Walters’ Model?
(A) All financing is done through retained earnings; external sources of funds like debt or new equity capital are not used.
(B) The retention ratio, once decided upon, is constant. Thus, the growth rate, (g = br) is also constant.
(C) The capital markets are perfect and the investors behave rationally.
(D) All of the above.
Ans: A
50. This consists of two lists of statements or terms and the candidate has to match an item in one list with an item in the other:
List-I List-II
(Statement) (Terms)
a. Preventing hostile takeover 1. Management buyout
b. Leveraged buyout 2. Green mail
c. Accounting for merger 3. Pooling of interest
d. Financing for merger 4. Cash offer
Codes:
a b c d
(A) 1 2 3 4
(B) 2 1 4 3
(C) 2 1 3 4
(D) 3 4 2 1
Ans: C
51. Match the items of List – I with those of List – II and give the correct code from the following:
List – I List – II
a. Sales Maximisation Model i. John Williamson
b. Managerial Discretion Model ii. R.M. Cyert and J.G. March
c. Integrative Model iii. William J. Baumol
d. Behavioural Model iv. Oliver Williamson
Codes:
a b c d
(A) ii iii iv i
(B) iii iv i ii
(C) i ii iii iv
(D) iv i ii iii
Ans: B
52. The hypothesis that ‘consumption in one period would be a function of income in that period and the returns on savings of the previous period’ is given by
(A) Irving Fisher
(B) Franco Modigliani
(C) Duesenberry
(D) Robert Hall
Ans: B
53. From the following identify one which is not a property of Indifference curve?
(A) Indifference curves are downward sloping.
(B) Indifference curves are concave to the origin.
(C) Indifference curves are convex to the origin.
(D) Indifference curves do not intersect each other.
Ans: B
54. Which one of the following statements is true?
(A) Business decisions cannot be taken without a sound knowledge of Macro Economic Theories.
(B) Knowledge of Economic Theory is misleading in making business decisions.
(C) With the help of Economic Theories, it is always possible to predict the future accurately.
(D) Every Economic Theory is based on realistic facts which are common to all societies.
Ans: A
55. Arrange the following in the proper order for decision under capital budgeting.
(i) Estimating the cost and benefits of proposals.
(ii) Deciding the investment objective.
(iii) Selecting the best investment proposal.
(iv) Applying the capital budgeting decision technique.
Codes:
(A) (ii) (iv) (i) (iii)
(B) (ii) (iv) (iii) (i)
(C) (ii) (i) (iv) (iii)
(D) (ii) (i) (iii) (iv)
Ans: C
56. Human resource planning system includes
(A) Human resource supply forecast
(B) Human resource inventory
(C) Corporate plan
(D) All of the above
Ans: A
57. What are the benefits of human resource planning?
(A) Achieve economy in hiring new workers.
(B) Match personnel activities and future organization objectives efficiently.
(C) Improve the utilization of human resources.
(D) All of the above
Ans: D
58. Human Resource Management includes
1. Employee Grievance
2. Organizational climate
3. Job incentives
4. Recruitment
5. Selection
Select the correct answer from the following:
(A) 1, 2, 3 and 4
(B) 1, 3, 4 and 5
(C) 1 and 5
(D) All of the above
Ans: B
59. Match the following:
a. Job Analysis 1. Determining worth of a job.
b. Job Evaluation 2. Examining how work adds value to the ongoing process.
c. Job Design 3. Determining the pertinent facts about the job.
d. Work Flow Analysis 4. Organizing work into the tasks required to perform a specific job.
Codes:
a b c d
(A) 1 2 3 4
(B) 4 3 2 1
(C) 3 1 4 2
(D) 2 3 1 4
Ans: C
60. Which fact is true about on-line marketing?
(A) A website which is user-friendly.
(B) A website which is user-friendly and regularly updated.
(C) A website which is user-friendly regularly updated and make product’s graphical image available.
(D) A website which is user-friendly, regularly updated, provides product’s graphical image and product’s price is competitive.
Ans: D
61. Which of the following function involved under marketing management’s function?
1. Collection of market information
2. Marketing coordination
3. Marketing controlling
4. All the above
Codes:
(A) 1 & 2
(B) 2 & 3
(C) 3 only
(D) 4 only
Ans: D
62. Two statements are given below:
Statement – I: Product concept of marketing holds that consumers would favour those products that are available and highly affordable.
Statement – II: Production concept of marketing holds that consumers would not buy enough of the company’s product unless the company undertakes a substantial promotional effort.
Choose the correct option from the four options given below:
(A) Statement I is correct and II is wrong.
(B) Statement II is correct and I is wrong.
(C) Both statements are correct.
(D) Both statements are wrong.
Ans: D
63. Match the following:
List-I List-II
a. Differentiation 1. How familiar and intimate consumers are with the brand.
b. Esteem 2. The degree to which a brand is seen as different from others.
c. Relevance 3. How well the brand is regarded and respected.
d. Knowledge 4. The breadth of a brand’s appeal.
Codes:
a b c d
(A) 1 2 3 4
(B) 2 3 4 1
(C) 3 4 1 2
(D) 4 3 2 1
Ans: B
64. From the following identify one which is not a collusive oligopoly model
(A) Cartels
(B) Edgeworth Model
(C) Price Leadership
(D) Market Share Model
Ans: B
65. The rate at which the consumer can trade one good for another is termed as marginal rate of substitution in
(A) Exchange
(B) Consumption
(C) Production
(D) The distribution
Ans: A
66. If demand equation is given by D = 1000 – P and the supply equation is given by S = 100 + 4P, price will be
(A) 160
(B) 180
(C) 170
(D) 200
Ans: B
67. Arrange the following steps, involved in the estimation of a demand function using econometric analysis, in the proper order
(i) Collection of data
(ii) Estimating the parameters of the model
(iii) Mathematical specification of the relationship among the variables
(iv) Using the estimates to arrive at the estimates of variables.
(v) Identification of variables
Codes:
(A) (v), (i), (iii), (iv), (ii)
(B) (i), (ii), (iii), (iv), (v)
(C) (i), (ii), (iv), (iii), (v)
(D) (v), (i), (iii), (ii), (iv)
Ans: D
68. Match the items given in Column A with the suitable items given in Column B:
Column A Column B
a. Maximisation of society’s welfare even when individuals behave selfishly to further their own economic status. i. Equilibrium
b. State of balance from which there is no tendency to change. ii. Non-Satiation
c. Best possible state within a given set of constraints. iii. The invisible hand
d. A situation wherein a customer always prefer more of goods to less of goods. iv. Optimisation
Codes:
a b c d
(A) iv i iii ii
(B) ii i iv iii
(C) iii i iv ii
(D) iv i ii iii
Ans: C
69. Which one is not the technique of personality measurement?
(A) Projective Technique
(B) Word Association Technique
(C) Raven’s Progressive Matrices
(D) Sentence Completion Technique
Ans: C
70. Drive is explained by
(A) Any strong stimulus that impels action.
(B) Any object, event exiting in the environment.
(C) Anything that increases the repetition of behaviour.
(D) None of the above
Ans: A
71. Consider the following phases of Organisational Development (OD):
a. Entry into the organisation
b. Development of internal resources
c. Problem identification
d. Specific intervention
e. Building a collaborative culture
Rearrange the above stages in an orderly sequence:
(A) a → c → b → d → e
(B) a → b → c → d → e
(C) c → b → a → e → d
(D) a → c → d → e → b
Ans: D
72. Match the following:
Explanation Term
a. The beliefs or ideas one has about an object or situation 1. Attitude
b. The feelings or emotions one has about an object or situation 2. Cognitive component
c. Psychological discomfort experienced when attitudes and behavior are inconsistent 3. Affective component
d. How one intends to act or behave toward someone or something 4. Behavioural component
e. Learned predisposition toward a given object 5. Cognitive dissonance
Codes:
a b c d e
(A) 1 2 3 4 5
(B) 2 3 5 4 1
(C) 3 2 4 5 1
(D) 5 3 4 2 1
Ans: B
73. Match the theories given in Column – I with the explanations in Column – II:
Column – I Column – II
a. Super ego 1. Individual moves from a state of passivity as a child to state of activity as an adult.
b. Closure 2. Social values and personal norms that serve as an ethical constraint on behaviour.
c. Immaturity – Maturity Theory 3. Perception of a person about how others are perceiving his qualities.
d. Looking glass-self 4. People when faced with incomplete information tend to fill gaps themselves.
Codes:
a b c d
(A) 1 2 3 4
(B) 1 2 4 3
(C) 2 1 3 4
(D) 2 4 1 3
Ans: D
74. What is the procedure in which an employer and a group of employees agree to the conditions of work?
(A) Dispute settlement
(B) Collective bargaining
(C) Industrial democracy
(D) None of the above
Ans: B
75. Factor comparison method is used as a technique of
(A) Job Analysis
(B) Job Evaluation
(C) Job Design
(D) None of the above
Ans: B
76. Succession planning can best be explained by
(A) Activity in which managers make decisions regarding the advancement potential of subordinates.
(B) Activity that focuses on preparing people to fill executive positions.
(C) A chart showing the possible directions and career opportunities available in an organization.
(D) None of the above
Ans: B
77. Employees join union when they
(A) Are dissatisfied with certain aspects of their jobs.
(B) Feel that they lack influence with management to make the needed change.
(C) Feel unionization as a solution to their problems.
(D) All the above
Ans: D
78. Identify the correct sequence of the steps of grievance procedure required to be followed for the grievance handling
1. Departmental Manager
2. Immediate Supervisor
3. Arbitration
4. Trade Union’s intervention
(A) 1, 2, 3 & 4
(B) 2, 3, 1 & 4
(C) 2, 1, 4 & 3
(D) 2, 4, 1 & 3
Ans: C
79. Match the following:
a. Job posting system 1. A company maintained record of employee’s abilities, skills, knowledge and education.
b. Career path 2. A chart showing the possible direction and opportunities available to an employee in the organization.
c. Skills inventory 3. A collection of career development materials.
d. Career Resource Centre 4. A system in which an organization announces job openings.
Codes:
a b c d
(A) 1 2 3 4
(B) 2 3 4 1
(C) 4 2 1 3
(D) 3 4 1 2
Ans: C
80. Match the following:
a. Attrition 1. Separation that occurs when an employer decides to terminate its relationship with an employee due to economic necessity.
b. Downsizing 2. A company’s strategy of separation of employees to reduce the scale (size) and scope of its business in order to improve the company’s financial performance.
c. Involuntary separation 3. The process of reorganizing a company’s employees to improve their efficiency.
d. Right sizing 4. An employment policy designed to reduce the company’s workforce by not refilling job vacancies that are created by turnover.
Codes:
a b c d
(A) 1 2 3 4
(B) 4 2 1 3
(C) 3 2 4 1
(D) 2 1 3 4
Ans: B
81. Which one of the following is the advantage of team-based pay for performance plans?
(A) Financial incentives can shape a person’s goals.
(B) Can help the firm to attain individual equity.
(C) Fit an individualistic culture.
(D) Aids performance measurement.
Ans: D
82. Which one of the following is not Human Resource requirement estimation method?
(A) Regression Analysis
(B) Ratio Analysis
(C) Top-down Approach
(D) All of the above
Ans: D
83. Which of the following form for improving workers participation in management was included in the recommendations of the Justice Rajinder Sachar Committee report?
(A) Works Committee
(B) Joint Management Council
(C) Workers’ representation in the Board of Directors and allotment of equity to workers
(D) Unit Council
Ans: C
84. JK Ltd. has earned 8% return on total assets of Rs. 50, 00,000 and has a Net Profit Ratio of 5%. Find out the sales of the firm.
(A) Rs. 4, 00,000
(B) Rs. 2, 80,000
(C) Rs. 80, 00,000
(D) Rs. 83, 33,333
Ans: C
85. Net Present Value Method and Internal Rate of Return Method of capital budgeting techniques may give conflicting accept-reject decision due to
1. Disparity in initial investment
2. Disparity in timing of cash flow
3. Disparity in the life of the project
(A) 1 only
(B) 2 only
(C) 1 and 2 only
(D) 1, 2 and 3
Ans: D
86. Beta B of risk-free investment is
(A) – 1
(B) 0
(C) 1
(D) None of these
Ans: B
87. A firm’s inventory planning period is one year. Its inventory requirement for this period is 400 units. Assume that its acquisition costs are Rs. 50 per order. The carrying costs are expected to be Rs. 1 per unit per year for an item. What is EOQ?
(A) 800 units
(B) 200 units
(C) 100 units
(D) None of the above
Ans: B
88. Margin of Safety ratio can be calculated as
(A) (Actual Sales – Breakeven Sales)/Actual Sales × 100
(B) (Actual Sales – Break-even Sales)/ Break even Sales × 100
(C) (Break even Sales – Actual Sales)/ Actual Sales × 100
(D) (Break even Sales – Actual Sales)/ Break even Sales × 100
Ans: A
89. The sum of the value of all final goods and services produced within a country and net factor income from abroad is termed as
(A) GNP
(B) Nominal GDP
(C) NNP
(D) Real GDP
Ans: A
90. If a firm raises Rs. 1, 00,000 by the issue of debentures at 10%, repayable after 10 years, the rate of return that equates the present value of cash inflows with the present value of cash outflows is referred to as
(A) Explicit cost
(B) Implicit cost
(C) Specific cost
(D) Future cost
Ans: A
91. The major objective of economists to monopolies is
(A) Lack of technological progress in such industries.
(B) The dangerous impact on democratic government.
(C) The inability in an industry where there is a single producer.
(D) The tendency to restrict output and charge higher price.
Ans: D
92. Statement I: Demand for a commodity refers to quantity of the commodity demanded at a certain price during any particular period of time.
Statement II: Contraction of demand is the result of increase in the price of the goods concerned.
(A) Both I & II are correct.
(B) Both I and II are incorrect.
(C) I is correct and II is incorrect.
(D) II is correct and I is incorrect.
Ans: A
93. Match the items given in List-I with most suitable options given in List-II.
List – I List – II
(a) Rate of discount which equates the net present value to zero. (i) Payback period
(b) Ratio of present value of cash inflows to the cash outflow. (ii) Internal Rate of Return
(c) Percentage of annual net income earned on average fund invested in a project. (iii) Profitability Index
(d) Investment divided by annual net cash inflow. (iv) Average Rate of Return
Codes:
(a) (b) (c) (d)
(A) (iii) (ii) (iv) (i)
(B) (iii) (ii) (i) (iv)
(C) (ii) (iii) (iv) (i)
(D) (ii) (iii) (i) (iv)
Ans: C
94. The process through which individuals attempt to determine the causes behind others’ behaviour is known as
(A) Perception
(B) Attitude
(C) Attribution
(D) Social identity theory
Ans: C
95. Which theory of human motivation focuses on personal perceptions of the performance process?
(A) Adam’s Theory of Inequality
(B) McClelland’s Need Theory
(C) Vroom’s Expectancy Theory
(D) Alderfer’s ERG Theory
Ans: C
96. Annual Reports, Balance Sheets, Brochures and Advertisements in organisational communication are the means to aim at
(A) Influencing
(B) Image building
(C) Group building
(D) Credibility building
Ans: B
97. Match the following:
a. Attitudes 1. Beliefs that individuals possess certain characteristics because of their membership in certain groups.
b. Job Satisfaction 2. Negative attitude toward the members of specific groups, based solely on the fact that they are members of those groups.
c. Prejudice 3. Positive or negative attitudes held by individuals toward their jobs.
d. Stereo types 4. Relatively stable clusters of feelings, beliefs and behavioural intentions toward specific objects, people or institutions.
Codes:
a b c d
(A) 1 2 3 4
(B) 2 3 4 1
(C) 3 4 1 2
(D) 4 3 2 1
Ans: D
98. Match the following:
a. Delegating 1. A function of a situation wherein a leader is effective only when the styles used to influence and alter the situation is appropriate.
b. Situational theory 2. Low nurturing and low regulating behaviour.
c. Grid training 3. A function of a situation wherein a leader permits subordinates to take part in decision making and permit them a considerable degree of autonomy.
d. Participative Leadership 4. A multi-step process designed to cultivate concern for people and concern for production.
Codes:
a b c d
(A) 1 2 3 4
(B) 2 1 4 3
(C) 3 2 4 1
(D) 4 3 1 2
Ans: C
99. On-the-job training methods are not based on
(A) Demonstration methods
(B) Interactive methods
(C) Vestibule Training methods
(D) Apprentice training method
Ans: B
100. Minimum wage means
(A) Wage sufficient to ensure the workman food, shelter, clothing, frugal comfort and provision for evil days.
(B) Wages paid in proportion to workman’s work efficiency.
(C) A wage sufficient to satisfy the workman’s basic needs.
(D) A sum of money paid under contract by an employer to a workman for services rendered.
Ans: C
List – I List – II
a. Sales Maximisation Model i. John Williamson
b. Managerial Discretion Model ii. R.M. Cyert and J.G. March
c. Integrative Model iii. William J. Baumol
d. Behavioural Model iv. Oliver Williamson
Codes:
a b c d
(A) ii iii iv i
(B) iii iv i ii
(C) i ii iii iv
(D) iv i ii iii
Ans: B
52. The hypothesis that ‘consumption in one period would be a function of income in that period and the returns on savings of the previous period’ is given by
(A) Irving Fisher
(B) Franco Modigliani
(C) Duesenberry
(D) Robert Hall
Ans: B
53. From the following identify one which is not a property of Indifference curve?
(A) Indifference curves are downward sloping.
(B) Indifference curves are concave to the origin.
(C) Indifference curves are convex to the origin.
(D) Indifference curves do not intersect each other.
Ans: B
54. Which one of the following statements is true?
(A) Business decisions cannot be taken without a sound knowledge of Macro Economic Theories.
(B) Knowledge of Economic Theory is misleading in making business decisions.
(C) With the help of Economic Theories, it is always possible to predict the future accurately.
(D) Every Economic Theory is based on realistic facts which are common to all societies.
Ans: A
55. Arrange the following in the proper order for decision under capital budgeting.
(i) Estimating the cost and benefits of proposals.
(ii) Deciding the investment objective.
(iii) Selecting the best investment proposal.
(iv) Applying the capital budgeting decision technique.
Codes:
(A) (ii) (iv) (i) (iii)
(B) (ii) (iv) (iii) (i)
(C) (ii) (i) (iv) (iii)
(D) (ii) (i) (iii) (iv)
Ans: C
56. Human resource planning system includes
(A) Human resource supply forecast
(B) Human resource inventory
(C) Corporate plan
(D) All of the above
Ans: A
57. What are the benefits of human resource planning?
(A) Achieve economy in hiring new workers.
(B) Match personnel activities and future organization objectives efficiently.
(C) Improve the utilization of human resources.
(D) All of the above
Ans: D
58. Human Resource Management includes
1. Employee Grievance
2. Organizational climate
3. Job incentives
4. Recruitment
5. Selection
Select the correct answer from the following:
(A) 1, 2, 3 and 4
(B) 1, 3, 4 and 5
(C) 1 and 5
(D) All of the above
Ans: B
59. Match the following:
a. Job Analysis 1. Determining worth of a job.
b. Job Evaluation 2. Examining how work adds value to the ongoing process.
c. Job Design 3. Determining the pertinent facts about the job.
d. Work Flow Analysis 4. Organizing work into the tasks required to perform a specific job.
Codes:
a b c d
(A) 1 2 3 4
(B) 4 3 2 1
(C) 3 1 4 2
(D) 2 3 1 4
Ans: C
60. Which fact is true about on-line marketing?
(A) A website which is user-friendly.
(B) A website which is user-friendly and regularly updated.
(C) A website which is user-friendly regularly updated and make product’s graphical image available.
(D) A website which is user-friendly, regularly updated, provides product’s graphical image and product’s price is competitive.
Ans: D
61. Which of the following function involved under marketing management’s function?
1. Collection of market information
2. Marketing coordination
3. Marketing controlling
4. All the above
Codes:
(A) 1 & 2
(B) 2 & 3
(C) 3 only
(D) 4 only
Ans: D
62. Two statements are given below:
Statement – I: Product concept of marketing holds that consumers would favour those products that are available and highly affordable.
Statement – II: Production concept of marketing holds that consumers would not buy enough of the company’s product unless the company undertakes a substantial promotional effort.
Choose the correct option from the four options given below:
(A) Statement I is correct and II is wrong.
(B) Statement II is correct and I is wrong.
(C) Both statements are correct.
(D) Both statements are wrong.
Ans: D
63. Match the following:
List-I List-II
a. Differentiation 1. How familiar and intimate consumers are with the brand.
b. Esteem 2. The degree to which a brand is seen as different from others.
c. Relevance 3. How well the brand is regarded and respected.
d. Knowledge 4. The breadth of a brand’s appeal.
Codes:
a b c d
(A) 1 2 3 4
(B) 2 3 4 1
(C) 3 4 1 2
(D) 4 3 2 1
Ans: B
64. From the following identify one which is not a collusive oligopoly model
(A) Cartels
(B) Edgeworth Model
(C) Price Leadership
(D) Market Share Model
Ans: B
65. The rate at which the consumer can trade one good for another is termed as marginal rate of substitution in
(A) Exchange
(B) Consumption
(C) Production
(D) The distribution
Ans: A
66. If demand equation is given by D = 1000 – P and the supply equation is given by S = 100 + 4P, price will be
(A) 160
(B) 180
(C) 170
(D) 200
Ans: B
67. Arrange the following steps, involved in the estimation of a demand function using econometric analysis, in the proper order
(i) Collection of data
(ii) Estimating the parameters of the model
(iii) Mathematical specification of the relationship among the variables
(iv) Using the estimates to arrive at the estimates of variables.
(v) Identification of variables
Codes:
(A) (v), (i), (iii), (iv), (ii)
(B) (i), (ii), (iii), (iv), (v)
(C) (i), (ii), (iv), (iii), (v)
(D) (v), (i), (iii), (ii), (iv)
Ans: D
68. Match the items given in Column A with the suitable items given in Column B:
Column A Column B
a. Maximisation of society’s welfare even when individuals behave selfishly to further their own economic status. i. Equilibrium
b. State of balance from which there is no tendency to change. ii. Non-Satiation
c. Best possible state within a given set of constraints. iii. The invisible hand
d. A situation wherein a customer always prefer more of goods to less of goods. iv. Optimisation
Codes:
a b c d
(A) iv i iii ii
(B) ii i iv iii
(C) iii i iv ii
(D) iv i ii iii
Ans: C
69. Which one is not the technique of personality measurement?
(A) Projective Technique
(B) Word Association Technique
(C) Raven’s Progressive Matrices
(D) Sentence Completion Technique
Ans: C
70. Drive is explained by
(A) Any strong stimulus that impels action.
(B) Any object, event exiting in the environment.
(C) Anything that increases the repetition of behaviour.
(D) None of the above
Ans: A
71. Consider the following phases of Organisational Development (OD):
a. Entry into the organisation
b. Development of internal resources
c. Problem identification
d. Specific intervention
e. Building a collaborative culture
Rearrange the above stages in an orderly sequence:
(A) a → c → b → d → e
(B) a → b → c → d → e
(C) c → b → a → e → d
(D) a → c → d → e → b
Ans: D
72. Match the following:
Explanation Term
a. The beliefs or ideas one has about an object or situation 1. Attitude
b. The feelings or emotions one has about an object or situation 2. Cognitive component
c. Psychological discomfort experienced when attitudes and behavior are inconsistent 3. Affective component
d. How one intends to act or behave toward someone or something 4. Behavioural component
e. Learned predisposition toward a given object 5. Cognitive dissonance
Codes:
a b c d e
(A) 1 2 3 4 5
(B) 2 3 5 4 1
(C) 3 2 4 5 1
(D) 5 3 4 2 1
Ans: B
73. Match the theories given in Column – I with the explanations in Column – II:
Column – I Column – II
a. Super ego 1. Individual moves from a state of passivity as a child to state of activity as an adult.
b. Closure 2. Social values and personal norms that serve as an ethical constraint on behaviour.
c. Immaturity – Maturity Theory 3. Perception of a person about how others are perceiving his qualities.
d. Looking glass-self 4. People when faced with incomplete information tend to fill gaps themselves.
Codes:
a b c d
(A) 1 2 3 4
(B) 1 2 4 3
(C) 2 1 3 4
(D) 2 4 1 3
Ans: D
74. What is the procedure in which an employer and a group of employees agree to the conditions of work?
(A) Dispute settlement
(B) Collective bargaining
(C) Industrial democracy
(D) None of the above
Ans: B
75. Factor comparison method is used as a technique of
(A) Job Analysis
(B) Job Evaluation
(C) Job Design
(D) None of the above
Ans: B
76. Succession planning can best be explained by
(A) Activity in which managers make decisions regarding the advancement potential of subordinates.
(B) Activity that focuses on preparing people to fill executive positions.
(C) A chart showing the possible directions and career opportunities available in an organization.
(D) None of the above
Ans: B
77. Employees join union when they
(A) Are dissatisfied with certain aspects of their jobs.
(B) Feel that they lack influence with management to make the needed change.
(C) Feel unionization as a solution to their problems.
(D) All the above
Ans: D
78. Identify the correct sequence of the steps of grievance procedure required to be followed for the grievance handling
1. Departmental Manager
2. Immediate Supervisor
3. Arbitration
4. Trade Union’s intervention
(A) 1, 2, 3 & 4
(B) 2, 3, 1 & 4
(C) 2, 1, 4 & 3
(D) 2, 4, 1 & 3
Ans: C
79. Match the following:
a. Job posting system 1. A company maintained record of employee’s abilities, skills, knowledge and education.
b. Career path 2. A chart showing the possible direction and opportunities available to an employee in the organization.
c. Skills inventory 3. A collection of career development materials.
d. Career Resource Centre 4. A system in which an organization announces job openings.
Codes:
a b c d
(A) 1 2 3 4
(B) 2 3 4 1
(C) 4 2 1 3
(D) 3 4 1 2
Ans: C
80. Match the following:
a. Attrition 1. Separation that occurs when an employer decides to terminate its relationship with an employee due to economic necessity.
b. Downsizing 2. A company’s strategy of separation of employees to reduce the scale (size) and scope of its business in order to improve the company’s financial performance.
c. Involuntary separation 3. The process of reorganizing a company’s employees to improve their efficiency.
d. Right sizing 4. An employment policy designed to reduce the company’s workforce by not refilling job vacancies that are created by turnover.
Codes:
a b c d
(A) 1 2 3 4
(B) 4 2 1 3
(C) 3 2 4 1
(D) 2 1 3 4
Ans: B
81. Which one of the following is the advantage of team-based pay for performance plans?
(A) Financial incentives can shape a person’s goals.
(B) Can help the firm to attain individual equity.
(C) Fit an individualistic culture.
(D) Aids performance measurement.
Ans: D
82. Which one of the following is not Human Resource requirement estimation method?
(A) Regression Analysis
(B) Ratio Analysis
(C) Top-down Approach
(D) All of the above
Ans: D
83. Which of the following form for improving workers participation in management was included in the recommendations of the Justice Rajinder Sachar Committee report?
(A) Works Committee
(B) Joint Management Council
(C) Workers’ representation in the Board of Directors and allotment of equity to workers
(D) Unit Council
Ans: C
84. JK Ltd. has earned 8% return on total assets of Rs. 50, 00,000 and has a Net Profit Ratio of 5%. Find out the sales of the firm.
(A) Rs. 4, 00,000
(B) Rs. 2, 80,000
(C) Rs. 80, 00,000
(D) Rs. 83, 33,333
Ans: C
85. Net Present Value Method and Internal Rate of Return Method of capital budgeting techniques may give conflicting accept-reject decision due to
1. Disparity in initial investment
2. Disparity in timing of cash flow
3. Disparity in the life of the project
(A) 1 only
(B) 2 only
(C) 1 and 2 only
(D) 1, 2 and 3
Ans: D
86. Beta B of risk-free investment is
(A) – 1
(B) 0
(C) 1
(D) None of these
Ans: B
87. A firm’s inventory planning period is one year. Its inventory requirement for this period is 400 units. Assume that its acquisition costs are Rs. 50 per order. The carrying costs are expected to be Rs. 1 per unit per year for an item. What is EOQ?
(A) 800 units
(B) 200 units
(C) 100 units
(D) None of the above
Ans: B
88. Margin of Safety ratio can be calculated as
(A) (Actual Sales – Breakeven Sales)/Actual Sales × 100
(B) (Actual Sales – Break-even Sales)/ Break even Sales × 100
(C) (Break even Sales – Actual Sales)/ Actual Sales × 100
(D) (Break even Sales – Actual Sales)/ Break even Sales × 100
Ans: A
89. The sum of the value of all final goods and services produced within a country and net factor income from abroad is termed as
(A) GNP
(B) Nominal GDP
(C) NNP
(D) Real GDP
Ans: A
90. If a firm raises Rs. 1, 00,000 by the issue of debentures at 10%, repayable after 10 years, the rate of return that equates the present value of cash inflows with the present value of cash outflows is referred to as
(A) Explicit cost
(B) Implicit cost
(C) Specific cost
(D) Future cost
Ans: A
91. The major objective of economists to monopolies is
(A) Lack of technological progress in such industries.
(B) The dangerous impact on democratic government.
(C) The inability in an industry where there is a single producer.
(D) The tendency to restrict output and charge higher price.
Ans: D
92. Statement I: Demand for a commodity refers to quantity of the commodity demanded at a certain price during any particular period of time.
Statement II: Contraction of demand is the result of increase in the price of the goods concerned.
(A) Both I & II are correct.
(B) Both I and II are incorrect.
(C) I is correct and II is incorrect.
(D) II is correct and I is incorrect.
Ans: A
93. Match the items given in List-I with most suitable options given in List-II.
List – I List – II
(a) Rate of discount which equates the net present value to zero. (i) Payback period
(b) Ratio of present value of cash inflows to the cash outflow. (ii) Internal Rate of Return
(c) Percentage of annual net income earned on average fund invested in a project. (iii) Profitability Index
(d) Investment divided by annual net cash inflow. (iv) Average Rate of Return
Codes:
(a) (b) (c) (d)
(A) (iii) (ii) (iv) (i)
(B) (iii) (ii) (i) (iv)
(C) (ii) (iii) (iv) (i)
(D) (ii) (iii) (i) (iv)
Ans: C
94. The process through which individuals attempt to determine the causes behind others’ behaviour is known as
(A) Perception
(B) Attitude
(C) Attribution
(D) Social identity theory
Ans: C
95. Which theory of human motivation focuses on personal perceptions of the performance process?
(A) Adam’s Theory of Inequality
(B) McClelland’s Need Theory
(C) Vroom’s Expectancy Theory
(D) Alderfer’s ERG Theory
Ans: C
96. Annual Reports, Balance Sheets, Brochures and Advertisements in organisational communication are the means to aim at
(A) Influencing
(B) Image building
(C) Group building
(D) Credibility building
Ans: B
97. Match the following:
a. Attitudes 1. Beliefs that individuals possess certain characteristics because of their membership in certain groups.
b. Job Satisfaction 2. Negative attitude toward the members of specific groups, based solely on the fact that they are members of those groups.
c. Prejudice 3. Positive or negative attitudes held by individuals toward their jobs.
d. Stereo types 4. Relatively stable clusters of feelings, beliefs and behavioural intentions toward specific objects, people or institutions.
Codes:
a b c d
(A) 1 2 3 4
(B) 2 3 4 1
(C) 3 4 1 2
(D) 4 3 2 1
Ans: D
98. Match the following:
a. Delegating 1. A function of a situation wherein a leader is effective only when the styles used to influence and alter the situation is appropriate.
b. Situational theory 2. Low nurturing and low regulating behaviour.
c. Grid training 3. A function of a situation wherein a leader permits subordinates to take part in decision making and permit them a considerable degree of autonomy.
d. Participative Leadership 4. A multi-step process designed to cultivate concern for people and concern for production.
Codes:
a b c d
(A) 1 2 3 4
(B) 2 1 4 3
(C) 3 2 4 1
(D) 4 3 1 2
Ans: C
99. On-the-job training methods are not based on
(A) Demonstration methods
(B) Interactive methods
(C) Vestibule Training methods
(D) Apprentice training method
Ans: B
100. Minimum wage means
(A) Wage sufficient to ensure the workman food, shelter, clothing, frugal comfort and provision for evil days.
(B) Wages paid in proportion to workman’s work efficiency.
(C) A wage sufficient to satisfy the workman’s basic needs.
(D) A sum of money paid under contract by an employer to a workman for services rendered.
Ans: C