MANAGEMENT- PAGE 8
MANAGEMENT MCQs
1. Which of the following statement is true?
(A) Profit sharing is an agreement freely entered into by which the employees receive share fixed in advance from the organization’s profits.
(B) An experiment in profit shares on a wide scale would therefore be definitely undertaking a voyage of an unchartered sea.
(C) Profit distribution under a profit sharing plan are used to fund employee retirement plans.
(D) All of the above.
Ans: D
2. Performance appraisal includes
(A) Check reviews done by the supervisors.
(B) Review his performance in relation to the objectives and other behaviours.
(C) Promote employees for self-appraisal.
(D) All of the above.
Ans: D
3. Match the following:
a. Human Resource Strategy 1. A goal-directed approach in which workers and their supervisors set goals together for the upcoming appraisal period.
b. Compensation 2. Time during which employees can choose not to be at work.
c. Flexitime 3. A legally required benefit that provides medical care, income continuation and
rehabilitation expenses.
d. Management by Objectives 4. A firm’s deliberate use of human resources to help it to gain or maintain an edge against its competitors.
Codes:
a b c d
(A) 1 2 3 4
(B) 4 3 2 1
(C) 2 3 4 1
(D) 3 4 1 2
Ans: B
4. In which case, the acquirer puts pressure on the management of the target company by threatening to make an open offer; the board capitulates straight away and agrees for settlement with the acquirer for change of control.
(A) Poison Put
(B) Bear Hug
(C) Poison Pill
(D) None of the above
Ans: B
5. Which of the following method of incorporation of risk in the capital budgeting decision framework is useful for situations in which decisions at one point of time also affect the decisions of the firm at some later date?
(A) Certainty Equivalent Approach
(B) Probability Distribution Approach
(C) Risk-adjusted Discount Rate Approach
(D) Decision-tree Approach
Ans: D
6. In which of the approach, the market value of the firm depends upon the EBIT and the overall cost of capital
(A) Net Income Approach
(B) Net Operating Income Approach
(C) Modigliani-Miller Approach
(D) None of the above
Ans: B
7. Which is the assumption of Modigliani and Miller approach to cost of capital?
(A) The firms can be classified into homogeneous risk class.
(B) The capital markets are assumed to be perfect.
(C) All investors have the same expectations from a firm’s net operating income which is necessary to evaluate the value of a firm.
(D) All of the above.
Ans: D
8. Match the following:
List – I List – II
(Functions of Finance) (Significance)
a. Financial Statements 1. Check on Financial Activities
b. Administration of Tax 2. Reduction of Tax Liability
c. Internal Audit 3. Allocation of Fund
d. Budgeting 4. Income Statement
Codes:
a b c d
(A) 1 2 3 4
(B) 4 3 2 1
(C) 4 2 1 3
(D) 2 3 4 1
Ans: C
9. A deliberate and careful choice of organisation, product, price promotion, place strategies and policies best define the concept of
(A) Marketing Mix
(B) Product Mix
(C) Market Penetration
(D) Market Segmentation
Ans: A
10. Rational motives in buying process are explained as
(A) Motives based on careful, logical reasoning and self-acceptance.
(B) Motives based on sensual satisfaction, fear and entertainment.
(C) Activity buyer adopts to satisfy buying needs.
(D) All of the above.
Ans: A
11. Which of the following combination, according to hierarchy of effects model is correct?
(A) Awareness – Liking – Knowledge – Conviction – Preference – Purchase.
(B) Awareness – Knowledge – Liking – Preference – Conviction – Purchase.
(C) Awareness – Liking – Knowledge – Conviction – Purchase – Preference.
(D) Awareness – Preference – Knowledge – Liking – Preference – Purchase.
Ans: B
12. 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)
I. Brands which are evaluated for the purchase decision. 1. Consideration set
II. Brands which are considered by the buyer for evaluation. 2. Evoked set
III. Brands which are disliked and avoided. 3. Inept set
IV. Brands which the buyer is aware but is indifferent towards it. 4. Inert set
Codes:
I II III IV
(A) 2 3 1 4
(B) 1 2 3 4
(C) 2 1 3 4
(D) 2 1 4 3
Ans: B
13. The approach to management which is an effort to control costs of storage space, time and effort
(A) MBO (B) TQM (C) JIT (D) Contingency approach
Ans: C
14. A step in management process which consists of series of individual purposive decisions which follow a sequence or pattern is
(A) Planning (B) Organising (C) Coordinating (D) Evaluating
Ans: A
15. Urie Bronfenbrenner’s theory is
(A) Humanistic Perspective (B) Sociobiology (C) Ecological Systems Theory (D) Socio-cultural Theory
Ans: C
16. Systems approach to management consists of
(A) Information requirement (B) Communication Methodology
(C) Decision making techniques (D) All of the above
Ans: D
17. Henry Fayol attempted to develop
(A) Scientific Management (B) Universal Theory of Management
(C) Productivity Theory (D) None of the above
Ans: B
18. Who is considered as the father of human relations approach in management
(A) Abraham Maslow (B) Douglas McGregor
(C) P F Drucker (D) Elton Mayo
Ans: D
19. __________ is a process to determine the objectives that needs to be achieved as well as to identify the methods to achieve the said objectives
(A) Strategy (B) Tactic
(C) Planning (D) Administration
Ans: C
20. The main advantage of functional organization is
(A) Specialization (B) Simplicity
(C) Expert Advice (D) Experience
Ans: A
21. Span of Control means that
(A) An organization consist of various department
(B) Each persons authority is clearly defined
(C) Every subordinate has one superior
(D) A manger can supervise only a limited number of subordinates
Ans: D
22. An outline of the fundamental purpose of an organization is called its
(A) Vision Statement (B) Mission Statement
(C) Policy Document (D) Objectives
Ans: B
23. Plan made in the light of competitors plan is known as
(A) Policy (B) Procedure
(C) Strategy (D) Undercover plan
Ans: C
24. Principle of Directing involves
(A) Unity of Direction (B) Unity of Command
(C) Span of management (D) None of the above
Ans: B
25. A written statement of main duties and responsibilities which a particular job entails is called
(A) Job Evaluation (B) Job Analysis
(C) Job Description (D) None of the above
Ans: C
26. Which of the following is NOT an instrument of monetary policy
(A) Deficit Financing (B) Statutory Liquidity Ratio
(C) Cash Reserve Ratio (D) Open Market Operations
Ans: A
27. Economic planning is an essential feature of
(A) Dual Economy (B) Mixed Economy
(C) Socialist Economy (D) Capitalist Economy
Ans: C
(A) Profit sharing is an agreement freely entered into by which the employees receive share fixed in advance from the organization’s profits.
(B) An experiment in profit shares on a wide scale would therefore be definitely undertaking a voyage of an unchartered sea.
(C) Profit distribution under a profit sharing plan are used to fund employee retirement plans.
(D) All of the above.
Ans: D
2. Performance appraisal includes
(A) Check reviews done by the supervisors.
(B) Review his performance in relation to the objectives and other behaviours.
(C) Promote employees for self-appraisal.
(D) All of the above.
Ans: D
3. Match the following:
a. Human Resource Strategy 1. A goal-directed approach in which workers and their supervisors set goals together for the upcoming appraisal period.
b. Compensation 2. Time during which employees can choose not to be at work.
c. Flexitime 3. A legally required benefit that provides medical care, income continuation and
rehabilitation expenses.
d. Management by Objectives 4. A firm’s deliberate use of human resources to help it to gain or maintain an edge against its competitors.
Codes:
a b c d
(A) 1 2 3 4
(B) 4 3 2 1
(C) 2 3 4 1
(D) 3 4 1 2
Ans: B
4. In which case, the acquirer puts pressure on the management of the target company by threatening to make an open offer; the board capitulates straight away and agrees for settlement with the acquirer for change of control.
(A) Poison Put
(B) Bear Hug
(C) Poison Pill
(D) None of the above
Ans: B
5. Which of the following method of incorporation of risk in the capital budgeting decision framework is useful for situations in which decisions at one point of time also affect the decisions of the firm at some later date?
(A) Certainty Equivalent Approach
(B) Probability Distribution Approach
(C) Risk-adjusted Discount Rate Approach
(D) Decision-tree Approach
Ans: D
6. In which of the approach, the market value of the firm depends upon the EBIT and the overall cost of capital
(A) Net Income Approach
(B) Net Operating Income Approach
(C) Modigliani-Miller Approach
(D) None of the above
Ans: B
7. Which is the assumption of Modigliani and Miller approach to cost of capital?
(A) The firms can be classified into homogeneous risk class.
(B) The capital markets are assumed to be perfect.
(C) All investors have the same expectations from a firm’s net operating income which is necessary to evaluate the value of a firm.
(D) All of the above.
Ans: D
8. Match the following:
List – I List – II
(Functions of Finance) (Significance)
a. Financial Statements 1. Check on Financial Activities
b. Administration of Tax 2. Reduction of Tax Liability
c. Internal Audit 3. Allocation of Fund
d. Budgeting 4. Income Statement
Codes:
a b c d
(A) 1 2 3 4
(B) 4 3 2 1
(C) 4 2 1 3
(D) 2 3 4 1
Ans: C
9. A deliberate and careful choice of organisation, product, price promotion, place strategies and policies best define the concept of
(A) Marketing Mix
(B) Product Mix
(C) Market Penetration
(D) Market Segmentation
Ans: A
10. Rational motives in buying process are explained as
(A) Motives based on careful, logical reasoning and self-acceptance.
(B) Motives based on sensual satisfaction, fear and entertainment.
(C) Activity buyer adopts to satisfy buying needs.
(D) All of the above.
Ans: A
11. Which of the following combination, according to hierarchy of effects model is correct?
(A) Awareness – Liking – Knowledge – Conviction – Preference – Purchase.
(B) Awareness – Knowledge – Liking – Preference – Conviction – Purchase.
(C) Awareness – Liking – Knowledge – Conviction – Purchase – Preference.
(D) Awareness – Preference – Knowledge – Liking – Preference – Purchase.
Ans: B
12. 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)
I. Brands which are evaluated for the purchase decision. 1. Consideration set
II. Brands which are considered by the buyer for evaluation. 2. Evoked set
III. Brands which are disliked and avoided. 3. Inept set
IV. Brands which the buyer is aware but is indifferent towards it. 4. Inert set
Codes:
I II III IV
(A) 2 3 1 4
(B) 1 2 3 4
(C) 2 1 3 4
(D) 2 1 4 3
Ans: B
13. The approach to management which is an effort to control costs of storage space, time and effort
(A) MBO (B) TQM (C) JIT (D) Contingency approach
Ans: C
14. A step in management process which consists of series of individual purposive decisions which follow a sequence or pattern is
(A) Planning (B) Organising (C) Coordinating (D) Evaluating
Ans: A
15. Urie Bronfenbrenner’s theory is
(A) Humanistic Perspective (B) Sociobiology (C) Ecological Systems Theory (D) Socio-cultural Theory
Ans: C
16. Systems approach to management consists of
(A) Information requirement (B) Communication Methodology
(C) Decision making techniques (D) All of the above
Ans: D
17. Henry Fayol attempted to develop
(A) Scientific Management (B) Universal Theory of Management
(C) Productivity Theory (D) None of the above
Ans: B
18. Who is considered as the father of human relations approach in management
(A) Abraham Maslow (B) Douglas McGregor
(C) P F Drucker (D) Elton Mayo
Ans: D
19. __________ is a process to determine the objectives that needs to be achieved as well as to identify the methods to achieve the said objectives
(A) Strategy (B) Tactic
(C) Planning (D) Administration
Ans: C
20. The main advantage of functional organization is
(A) Specialization (B) Simplicity
(C) Expert Advice (D) Experience
Ans: A
21. Span of Control means that
(A) An organization consist of various department
(B) Each persons authority is clearly defined
(C) Every subordinate has one superior
(D) A manger can supervise only a limited number of subordinates
Ans: D
22. An outline of the fundamental purpose of an organization is called its
(A) Vision Statement (B) Mission Statement
(C) Policy Document (D) Objectives
Ans: B
23. Plan made in the light of competitors plan is known as
(A) Policy (B) Procedure
(C) Strategy (D) Undercover plan
Ans: C
24. Principle of Directing involves
(A) Unity of Direction (B) Unity of Command
(C) Span of management (D) None of the above
Ans: B
25. A written statement of main duties and responsibilities which a particular job entails is called
(A) Job Evaluation (B) Job Analysis
(C) Job Description (D) None of the above
Ans: C
26. Which of the following is NOT an instrument of monetary policy
(A) Deficit Financing (B) Statutory Liquidity Ratio
(C) Cash Reserve Ratio (D) Open Market Operations
Ans: A
27. Economic planning is an essential feature of
(A) Dual Economy (B) Mixed Economy
(C) Socialist Economy (D) Capitalist Economy
Ans: C