Management Hilal Ahmed

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How to use this eBook

This eBook has 3 Sections.
Section 1: section-1 of this eBook contains Topic wise questions from previous
year papers grouped together
Topic wise total questions details is given below:
S.No Topic Total number of

questions in this eBook
1 Managerial Economics 94
2 Organizational Behavior 91
3 Human Resource Management 92
4 Financial Management 92
5 Marketing 99
6 Production Management 86
7 Advance Statistics and MIS 93
8 Corporate Strategy 88
9 Entrepreneurship and Small Business 87
10 Business Ethics and Management System 86
TOTAL = 908
The answers to the questions are given in red or green color. This section will
give you an idea about how questions come from each Topic. You can take
Print out as answers are marked ticked also.
Section 2: This section of eBook contains full length year wise questions with
answer. You can practice full length paper here. You can take Print out as
answers are marked ticked also.
Section 3: This section has full length papers without answers for your practice.
You can take print out and practice and check how much marks your score in
each paper.
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INDEX
SECTION 1:
Topic Page Number
Managerial Economics 10-33
Organizational Behavior 34- 55
Human Resource Management 56- 78
Financial Management 79- 104
Marketing 105- 128
Production Management 129- 149
Research Methodology ( Statistics ) 150- 174
Corporate Strategy 175- 200
Entrepreneurship and Small Business 201- 222
Business Ethics and Management System 223- 247
SECTION 2:
TOPIC PAGE NUMBER
SOLVED PAPER2 NOVEMBER 2017 249- 264
SOLVED PAPER2 JANUARY 2017 265- 279
SOLVED PAPER2 JULY 2016 280- 295
SOLVED PAPER2 DECEMBER 2015 296- 311
SOLVED PAPER2 JUNE 2015 312- 322
SOLVED PAPER2 JUNE 2014 337 – 350
SOLVED PAPER2 SEPTEMBER 2013 364- 379
SOLVED PAPER2 JUNE 2013 380– 395
SOLVED PAPER2 DECEMBER 2011 419– 432
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SECTION 3:
TOPIC PAGE NUMBER
UNSOLVED PAPER2 NOVEMBER 2017 489- 504
UNSOLVED PAPER2 JANUARY 2017 505- 519
UNSOLVED PAPER2 JULY 2016 520- 535
UNSOLVED PAPER2 DECEMBER 2015 536- 550
UNSOLVED PAPER2 JUNE 2015 551- 560
UNSOLVED PAPER2 SEPTEMBER 2013 599- 613
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SYLLABUS
UNIVERSITY GRANTS COMMISSION
NET BUREAU
CODE NO. 17
Subject: Management (including Business
Administration, Management /
Marketing/Industrial Relations and Personnel
Management etc.)
Unit 1:-Managerial Economics
Managerial Economics – Demand Analysis, Production Function, Cost
output relations, Market Structures, Pricing theories, Advertising, Macro
Economics, National Income Concepts, Infrastructure- Management and
Policy, Business Environment, Capital Budgeting
Unit 2:-Organizational Behavior
The Concept and Significance of Organizational Behavior- Skills and Roles
in an Organization- Classical, Neo classical and Modern Theories of
Organizational Structure, Organizational Structure, Organizational
Design, Understanding and Understanding and Managing Group Behavior,
Processes, Inter- personal and Group Dynamics, Communication,
Leadership, Managing Change, Managing Conflicts, Organizational
Development.
Unit 3:-Human Resource Management
Concepts and Perspectives in HRM- HRM in Changing Environment,
Human Resource Planning, Objectives, Process and Techniques, Job
Analysis- Job Description, Selecting Human Resources Induction, Training
and Development, Exit Policy and Implications, Performance Appraisal
and Evaluation, Potential Assessment, Job Evaluation, Wage
Determination, Industrial Relations and Trade Unions, Dispute Resolution
and Grievance Management, Labor Welfare and Social Security Measures.
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Unit 4:-Financial Management
Financial Management Nature and Scope, Valuation Concepts and

Valuation of Securities, Capital Budgeting Decisions, Risk Analysis,
Capital Structure and Cost of capital, Dividend Policy, Determinants, Long
term and Short-term Financing Instruments, Mergers and Acquisitions
Unit 5:-Marketing
Marketing Environment and Environment Scanning Marketing

Information Systems and Marketing Research, Understanding Consumer
and Industrial Markets, Demand Measurements and Forecasting, Market
Segmentation, Targeting and Positioning, Product Decisions, Product Mix,
Product life Cycle, New Product Development, Branding and Packaging,
Pricing Methods and Strategies, Promotion Decisions, Promotion Mix,
Advertising, Personal Selling, Channel Management, Vertical Marketing
Systems, Evaluation and Control of Marketing Effort, Marketing of
Services, Customer Relationship Management, Uses of Internet as a
Marketing Medium- Other Related Issues Like Branding, Market
Development, Advertising and Retailing on the Net, New Issues in
Marketing
Unit 6:- Production Management
Role and Scope of Production Management:- Facility Location: Layout

Planning and Analysis , Production Planning and Control, Production
Process Analysis, Demand Forecasting for Operations, Determinants of
Product Mix, Production Scheduling, Work Measurement, Time and
Motion Study, Statistical Quality Control, Role and Scope of Operations
Research, Linear Programming, Sensitivity Analysis, Duality,
Transportation Model, Inventory Control, Queuing Theory, Decision
Theory, Markov Analysis, PERT/CPM.
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Unit 7:-Advance Statistics and MIS
Probability Theory Probability Distribution- Binomial, Poisson, Normal

and Exponential, Correlation and Regression Analysis, Sampling Theory,
Sampling Distributions, Tests of Hypothesis, Large and Small Samples, t, z
, F, Chi- square Tests, Use of Computers in Managerial Applications,
Technology Issues and Data Processing in Organizations, Information
Systems, MIS and Decision- making, System Analysis and Decision, Trends
in Information Technology, Internet and Internet based Applications,
Design.
Unit 8:-Corporate Strategy
Concept of Corporate Strategy Components of Strategy Formulation,

Ansoff‘s Growth Vector, BCG Model, Porter‘s Generic Strategies,
Competitor Analysis, Strategic Dimensions and Group Mapping, Industry
Analysis, Strategies in Industry Evolution, Fragmentation, Maturity and
Decline, Competitive Strategy and Corporate Strategy , Trans
nationalization of Word Economy, Managing Cultural Diversity, Diversity
Global Entry Strategies, Globalization of Financial System and Services,
Managing International Business, Competitive Advantage of Nations, RTF
and WTO.
Unit IX:- Entrepreneurship and Small Business

Concepts- Types, Characteristics Motivation, Competencies and its
Development and Development to be shifted from 8th Chapter and
Entrepreneurship, Small Business- Concept Government Policy for
Promotion of Small and Tiny Enterprises , Process of Business
Opportunity Identification, Detailed Business Plan Preparation, Managing
Small Enterprises, Planning for Growth; Sickness in Small Enterprises,
Rehabilitation of Sick Enterprises, Intrapreneurship ( Organizational
Entrepreneurship)
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Unit 10:-Business Ethics and Management System
Ethics and Management System Ethical Issues and Analysis in

Management, Value Based Organizations, Ethical Personal, Framework
for Ethical Choices, Pressure on Individual in Organizations, gender issues,
Ecological Consciousness, Environment Ethics: Social Responsibility of
Business, Corporate Governance and Ethics
8
SECTION-1
TOPIC WISE
QUESTIONS
WITH
ANSWERS
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UPDATES.
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Unit 1:-Managerial Economics
Managerial Economics – Demand Analysis, Production Function, Cost output
relations, Market Structures, Pricing theories, Advertising, Macro Economics,
National Income Concepts, Infrastructure- Management and Policy, Business
Environment, Capital Budgeting
Questions from previous papers:
NOV 2017
Managerial economics is concerned with which combination of the following?
Investment Analysis and Decisions
Production Behavior and Cost Analysis
Input Reward Analysis and Decisions
Economic Environment Analysis
Code:
(1) (a), (b) and (c)
(2) (b), (c) and (d)
(3) (a), (b) and (d)
(4) (a), (c) and (d)
When P0 and P1 and Q0 and Q1 denote before and after change in the price and
quantity respectively and in both the situations, total outlay remains the same,
which of the following formulae give the similar value of the arc price -
elasticity of demand?
(a) Qo-Q1 X Po+ P1 ( b) Qo-Q1 XPo
Po-P1 Qo+Q1 Po-P1 Q1
(c) Qo-Q1 X Po (d) Qo-Q1 X P1 (e) Qo-Q1 X P1
Po-P1 Qo Po-Q1 Q1 Po-P1 Qo
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Code:
(1) (b), (c) and (e)
(2) (a), (b) and (e)
(3) (a), (c) and (e)
(4) (b), (c) and (d)
In case the producer‟s equilibrium shifts to a higher isoquant due to decrease in

price of aninput, the curve combining the successive equilibrium positions is
known as:
(1) Product Possibility Curve (2) Price Factor Curve
(3) Expansion Path (4) Product Line
Which one of the following statements is not correct?
Marginal cost declines at a faster rate as compared to the average cost.
Marginal cost rises at a faster rate as compared to the average cost.
Marginal cost equals average cost where average cost is minimum.
Average cost equals marginal cost where marginal cost is minimum.
Cost - Plus pricing is not suitable for:
(1) Product Tailoring (2) Profit Maximizing
(3) Monopsony Pricing (4) Public Utility Pricing
JAN 2017
Indicate the correct code for the scope of managerial economics from the
following:
Demand Analysis
Production and Cost Analysis
Pricing and Investment Decisions
Factor pricing Decisions
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Economic Environmental Analysis
Codes:
(1) a, b, c, d (2) b, c, d, e
(3) a, b, c, e (4) a, c, d, e
Price elasticity of demand for a product is measured by
(1) Ed = ΔQ × ΔP (2) Ed = ΔQ ÷ ΔP
Q P Q P
(3) Ed = ΔP × Q (4) Ed = ΔP ÷ ΔQ
ΔQ P P Q
(Where Ed = elasticity of demand, Q = Quantity, P = Price and Δ = represents

change)
Which one of the following will be the appropriate pricing strategy for a new
product expecting an expanding market?
(1) Monopoly pricing (2) Skimming pricing
(3) Penetrating pricing (4) Differential pricing
Match the items of the List – I with those of the List – II and suggest the correct
code from the following:
List – I List – II
Loss Leader a. Locational price differentials
Unchanged Pricingb. Products with high initial demands
Basing Point pricing c. Product line pricing
Skimming Pricing d. Oligopoly pricing
Codes:
i ii iii iv
abcd
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c d a b
dbac
cabd
In case the firm makes varying investments on the different investment projects,
the appropriate project evaluation technique would be, which one of the
following?
Average annual rate of return technique
Payback period technique
Net present value technique
Profitability index technique
JULY 2016
The following is the demand function: Q = 100 – 5P
What will be the point price elasticity of demand at price Rs10?
(1) 2.00 (2) 1.00
(3) 0.85 (4) 0.50
The short-run cost function of a firm is as under: TC =
200 + 5Q + 2Q2
What will be the level of output at which AC and MC will be equal?
(1) 20 (2) 15
(3) 10 (4) 5
Match the items of List – I with the items of List – II and select the code of
correct matching:
Sales Revenue Maximization i. Williamson‟s Model
Maximization of a firm‟s growth rate ii. Cyert-March Hypothesis

Maximization of Managerial Utility function iii. Baumol‟s Theory
Satisficing behavior model iv. Marri‟s Theory
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Codes:
abcd
iii iv i ii
i ii iv iii
ii iii i iv
iv iii ii i
Assertion (A) : The perceived risk of operating a domestic firm in international
environment is much higher.
Reason (R) : The international environment is more volatile and the domestic
firm generally does not have full information about the environment.
Codes:
Both (A) and (R) are correct.
Both (A) and (R) are incorrect.
(A) is correct while (R) is incorrect.
(A) is incorrect while (R) is correct.
Statement – I: The accept-reject approach is adopted generally when a firm has
a large amount of funds to invest in several projects at the same time.
Statement – II: Both the NPV and the IRR methods of investment appraisal
are based on discounted cash flow approach.
Both the statements are correct.
Both the statements are incorrect.
Statement – I is correct while Statement – II is incorrect.
Statement – I is incorrect while Statement – II is correct.
DEC 2015
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Which one of the following assumptions is not related to consumer behavior
based on the cardinal utility approach?
Rationality
Diminishing marginal utility of money
Utility cardinally measurable
Maximization of satisfaction with limited money income
17. Statement 1:- A rectangular hyperbola shaped demand curve has uniform
slopes on all its points.
Statement 2:- If the price elasticity is equal to utility, the marginal revenue
corresponds on all its points.
Code:-
Statement 1 is correct while Statement 2 is incorrect
Statement 1 is incorrect while Statement 2 is correct
18. Match the items of List I with the items of List II and find the correct combination:
-
List I List II
(Market Structure) (Nature of Industry prevalent)
Perfect Competition (i) Aluminum and passenger cars
Oligopoly (ii) Public Utilities like Telephone and Electricity
Monopoly (iii) Manufacturing: T.V. Sets, Refrigerators
Monopolistic Competition (iv) Farm Products: Grains
Code:-
1. (i) (ii) (iii) (iv)
2. (iv) (i) (ii) (iii)
(iii) (iv) (i) (ii)
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(ii) (iii) (iv) (i)
19. Statement 1:- In general, the NPV and IRR methods lead to the same acceptance or
rejection decision when a single project is involved.
Statement 2: - The inconsistency in ranking of competing projects as per the
NPV and IRR methods lies in the implicit assumptions with regard to different
rates of returns on reinvestment of intermediate cash flows.
Code:-
Statement 1 is correct while Statement 2 is incorrect
Statement 1 is incorrect while Statement 2 is correct
Which one of the following is not covered in macro-economic?
Performance of the entire economy
Price and output determination of a commodity
Factors and forces of economic fluctuations
Monetary and fiscal policies
JUNE 2015
If the demand for using the Noida express way is given by: Q=
40,000-2500P
Where Q is the number of users (vehicles) and P is the amount of toll collected
per unit who uses the express way. In light of this information which of the
following is true:
At P=Rs 6 and Q=14,000; demand is price inelastic.
At P=Rs7 and Q=16,500; demand is unitary elastic.
At P=Rs4 and Q=9,500, demand is price elastic.
All of the above
If a 100% scale-efficient plant has 92% technical efficiency and 88.5%

allocative-efficiency, then its overall efficiency will be:
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(1) 88.5% (2) 90.25% (3) 93.0% (4) 81.42%
The market share data for an industry, comprising five companies, is given
below:
Company Market Share(%)
A 35
B 25
C 18
D 12
E 10
This industry‘s three-firmHerfindahl-Hirschman index shall be:
(1) 0.234 (2) 0.217 (3) 0.151 (4) 0.0175
For economy which consists of single automobile maker and that in year 2014,
30,000 vehicles are produced with an average price of ` 5 lakh. For this
economy what would be the increase in the nominal GDP for 2015 compared
with 2014 with the 4% greater automobile production and 8% inflation.
(1) 4.0% (2) 12.0% (3) 6.0% (4) 12.32%
Demand policies targeted to reduce the unemployment become
ineffective in presence of the following:
Vertical Phillips curve
Money illusion and ignorance among workers
Horizontal Phillips curve
None of the above
DEC 2014
In the market-oriented system, for the allocation of resources which one of the
following is the most appropriate conveyor of information?
(A) Finance Ministry (B) Central Bank
(C) Market Price (D) Advertisement Expenditure
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A company supplies 20 units of a particular product per month, at a price of Rs
10 per unit. If price elasticity of supply is 5, how many units would the
company supply at a price of Rs15?
(A) 50 (B) 70
(C) 40 (D) 5
Which characteristic is not likely to be a part of perfect competition?
(A) Absence of interdependence (B) Deadweight loss is non-existent
(C) Strong rivalry (D) Absence of advertisement
Match the items given in List – I and List – II by considering which of the
following are macroeconomic issues and which microeconomic ones are:
The level of government revenue i. Microeconomic
The rate of inflation ii. Macroeconomic
The price of T.V. set
The amount saved last year by households
Codes: -
abcd
ii i iii
ii i ii i
i ii iiii
ii ii i ii
In the recent years, world economy has witnessed the influence of
unconventional monetary policy of the U.S.A. This policy stance is known as
(A) Bank rate (B) Taylor rule
(C) Reserve requirement (D) Quantitative easing
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JUNE 2014
In case the price (P), quantity (Q), and changes (Δ) are represented by
respective symbols given in the brackets, the price elasticity of demand (Ed) is
measured by
Ed = ΔQ / PΔ
Ed = (QΔ/Q) / (PΔ/P)
Ed = ΔP/ΔQ
Ed = (ΔP/P) / (ΔQ/Q)
Law of Diminishing Return applies when the gaps among the successive
„multiple-level of output‟ isoquants
(A) Decreases(B) remains constant
(C) Increases (D) remains irregular
In case the demand elasticity under imperfect competition is unity, the marginal
revenue will be
more than utility, but less than infinity.
Equal to unity.
less than unity, but more than zero.
Equal to zero.
Rise in general price level along with declining output in the economy is called
(A) Inflation (B) Deflation
(C) Stagflation (D) Demand-pull inflation
National income equilibrium is not at the level where
Aggregate investment equals aggregate savings
Aggregate expenditure equals aggregate income
Inflationary and deflationarygaps are absent
Aggregate consumption is constant
19
DEC 2013
The Marshallian utility analysis is based on a less valid assumption of
Cardinal measurement of utility
Constant marginal utility of money
Diminishing marginal utility of goods
Additivity of the utility
An appropriate pricing strategy for a new product to be introduced in the market
will be
Average/Marginal cost-plus pricing
Skimming/Penetrating pricing
Product-line pricing
Differential pricing
Economic capacity of a plant represents the firm‟s capability for
Maximum physical output
Maximum marginal output
Break-even level of output and sale
Output that equates average and marginal costs
Multi-stage approach to product pricing in a firm involves
considerations for setting the price as follows:
Selection of firm‟s objective
Composition of marketing-mix
Selection of target market
Selection of pricing policy and strategy
Indicate correct sequence:
iv → ii → i → iii
iii → i → ii → iv
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ii → iv → iii → i
i → iii → ii → iv
Which one of the following practices is not sought to be regulated under the
Consumer Protection Act, 1986?
Sales of defective goods
Supply of services having some deficiency
Misleading advertisements
Goods supplied free of charge
SEPT 2013
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
If a firm raises Rs1,00,000 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
The major objective of economists to monopolies is
Lack of technological progress in such industries.
The dangerous impact on democratic government.
The inability in an industry where there is a single producer.
The tendency to restrict output and charge higher price.
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.
Both I & II are correct.
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Both I and II are incorrect.
I is correct and II is incorrect.
II is correct and I is incorrect.
Match the items given in List-I with most suitable options given in List- II.
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
earnedon average fundinvested in aproject.(iii) ProfitabilityIndex
(d)Investment divided by annual net cash
inflow. (iv) Average Rate of Return
Codes:
(a) (b) (c) (d)
(iii) (ii) (iv) (i)
(iii) (ii) (i) (iv)
(ii) (iii) (iv) (i)
(ii) (iii) (i) (iv)
JUNE 2013
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
From the following identify one which is not a property of Indifference curve?
Indifference curves are downward sloping.
Indifference curves are concave to the origin.
Indifference curves are convex to the origin.
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Indifference curves do not intersect each other.
Which one of the following statements is true?
Business decisions cannot be taken without a sound knowledge of Macro
Economic Theories.
Knowledge of Economic Theory is misleading in making business
decisions.
With the help of Economic Theories, it is always possible to predict the future
accurately.
Every Economic Theory is based on realistic facts which are common to all
societies.
Arrange the following in the proper order for decision under capital budgeting.
Estimating the cost and benefits of proposals.
Deciding the investment objective.
Selecting the best investment proposal.
Applying the capital budgeting decision technique.
Codes:
(ii) (iv) (i) (iii)
(ii) (iv) (iii) (i)
(ii) (i) (iv) (iii)
(ii) (i) (iii) (iv)
Match the following items in List – A with the most appropriate options from
List – B:
List-A List-B
A lender buys securities to protect himself from
a fallinginterest rate1. Interestrate collar
A borrower buys securities to protect himself
from rising interest rate 2. Interest rate cap
A combination of interest rate cap and floor 3. Interest rate
corridor
23
A combination of two or more interest rate caps 4. Interest rate floor
Codes:
a bcd
(A) 2 4 3 1
(B) 4 2 1 3
(C) 4 2 3 1
(D) 3 2 1 4
DEC 2012
The term Opportunity Cost refers to
Variable Cost
Short-run cost
The cost forgone in favor of production of another product
Cost related to an optimum level of production
If two commodities are complementary, then a rise in the price of one
commodity will induce
A rise in the price of the other commodity
An upward shift of demand curve
No shift in demand for the other commodity
A backward shift in demand for the other commodity
What is the characteristic of a purely competitive market?
Large number of buyers and sellers
A few sellers
A few buyers
Abnormal profit
Willingness to pay minus actual payment is called
Consumer‘s surplus
Producer‘s surplus
24
Utility cost
Supplier‘s surplus
Match List – I with List – II and select the correct answer using the codes given
below the lists:
Cost Function 1. Kinky Demand
Curve
Supply Function 2. Isoquants
Production Function 3. Engineering Method
Oligopoly 4. Factor Prices
Codes:
abcd
(A) 3 4 2 1
(B) 4 3 1 2
(C) 3 2 1 4
(D) 1 2 3 4
JUNE 2012
Cardinal measure of utility is required in
Utility Theory
Indifference Curve Analysis
Revealed Preference
Inferior Goods
A Right-ward shift in Demand Curve indicates
A decrease in supply
An increase in quantity supplied
An increase in supply over the previous year
Law of Variable Proportions
25
Which of the following is the conditionfor equilibrium for Monopolist?
MR = MC
MC = AR
MR = MC = Price
AC = AR
Giffen goods are those goods
For which demand increases as price decreases
Whichare in short supply
Which have high elasticity of demand?
Which gives rise to a Cob-Web situation.
Match List-I with List-II and select the correct answer using the codes given
below the lists.
List – IList – II
(Demand Estimation Method) (Steps involved)
Customer Interview Method 1. Consumers Interview
Market Experiment Method 2. Time series or Cross Section
Data
Regression Method 3. Market Stimulation
Demand Forecasts 4. Market Experiments‘ Survey
Codes:
(a) (b) (c) (d)
(A) 1 3 4 2
(B) 1 3 2 4
(C) 2 4 3 1
(D) 4 2 1 3
DEC 2011
Consider a demand curve which takes the form of a straight-line cutting both
axes. Elasticity at the mid-point of the line would be
26
(A) 0 (B) 1.0
(C) 1.5 (D) 2.0
Price taker firms
Advertise to increase the demand for their product
Do not advertise, because most advertising is wasteful.
Do not advertise because they can sell as much as they want at the current price.
Who advertise will get more profits than those who do not.
Note:- Answer for the question is not given by UGC
OPEC is an example of the type of producer‟s organization known as a
Marketing Board
Producer‘s Co-operative
Trust
Cartel
Match the following:
Responsiveness of demand to change in price 1. Income elasticity of demand
Responsiveness of demand to change in tastes 2. Price elasticity of demand
Responsiveness of demand to change in income 3. Cross elasticity of demand
Responsiveness of demand to change
in price of related goods 4. Taste elasticity of demand
Codes:
I II III IV
(A) 1 2 3 4
(B) 4 3 1 2
(C) 3 4 2 1
27
(D) 2 4 1 3
Opportunity costs are also known as
Spill-over costs
Money costs
Alternative costs
Sunk costs
JUNE 2011
In the case of an inferior commodity, the income elasticity of demand is
(A) Positive (B) Unitary
(C) Negative (D) Infinity
The slope of the iso-cost line is determined by
Prices of the two factors
Productivity of the two factors
Degree of substitutability of the two factors
None of these
Which one of the following statements is correct or more nearly correct?
An increase in the price of commodity represents a fall in its value
Value has nothing to do with the price
If the price of a commodityfalls, its value relative toother goods does not
change
The price of a good is its value measured in terms of money
The important macro-economic aggregates are
Aggregate Consumption
Gross Domestic Capital Formation
Gross Domestic Savings and GNP
All of the above
28
Match the following
For a given 10 per cent change in price,
demand changes by zero per cent 1. e > 1
Demandchanges by 5 percent2. e = 1
For a given 10 per cent change in price
demand changes by 10 percent3. e < 1
Demandchanges by 20 percent4. e = 0
Code:
I II III IV
(A) 3 1 2 4
(B) 4 3 2 1
(C) 1 2 3 4
(D) 2 3 1 4
DEC 2010
Under perfect competition in the long run
All firms earn normal profits
Few firms earn super normal profits
All firms are at break even
None of the above
National Income at market prices is equal to
Gross national product at market prices
Gross domestic product at market prices
Net national product at factor cost
None of the above
If there is a single buyer, it is called
Monopoly
29
Oligopoly
Monopsony
None of the above
Under which of the following method the time value of money is not
considered?
Net present value method
Internal rate of return method
Payback period method
All of the above
A firm is having increasing returns to scale means
It is having increasing costs.
It is having constant costs.
It is having decreasing costs.
None of the above
Production can be measured in terms of which of the following?
Total productivity
Marginal productivity
Average productivity
All of the above
JUNE 2010
During last five years per capita income of India is increasing, that means
National income growth of India is more than growth of population.
Growth in population is more than the growth in National income of India.
National income of India & population of India have grown at the uniform rate.
All of the above
30
In the short run firm considers the minimum of its average variable cost curve
as
Break-even point
Shutdown point
Economies of scope
None of the above
The positive cross elasticity of demand between two products means
Two products are substitutes
Two products are complementary
Two products are neither substitutes nor complementary
None of the above
A monopolist always operates in the
Inelastic segment of its demand curve
Elastic segment of its demand curve
Unitary elastic segment of its demand curve
None of the above
The price elasticity of demand for any product in the long run
Is more than it‘s short run value.
Is less than its short run value.
is same as its short run value.
None of the above.
Earnings foregone in the context of the best alternative is termed as
Past cost
Historical cost
Opportunity cost
Sunk cost
31
DEC 2009
The elasticity of demand indicates
The rate of response of demand to a change in price.
The rate of change of demand to a change in income.
The change in the tastes of consumers at different prices.
The rate of response of demand to a change in supply.
A rightward shift in supply curve indicates
A decrease in supply
An increase in quantity demanded
An increase in supply
Law of variable proportion
Which of the following is the condition of equilibrium for the monopolist?
MR = MC (C) AR = MC = Price
MC = AR (D) AC = AR
If the demand curve is a rectangular hyperbola, elasticity is
1(C) infinity
0 (D)less than one
If both supply and demand increase by the same proportion,
Quantity remains constant(C) Price increases
Price remains constant (D) Quantity increases
What leads to rationing and black marketing under perfect
competition?
Price support(C) Decrease in supply
Excess demand (D) Price control
JUNE 2009
Price elasticity of demand is best defined as:
32
The change in the tastes of consumers at different prices
The rate of response of demand to a change in supply
The rate of response of demand to a change in price
The rate of change of demand to a change in price
Giffen goods are those goods:
For which demand increases as price increases
Which are in short supply
Which have high income elasticity of demand
Which give rise to a decrease in demand
The situation where the market consists of only two buyers, then it is called:
(A) Monopsony (B) Duopsony
(C) Monopoly (D) Duopoly
In India, which method is used to measure National Income in service sector?
Expenditure method (C) Output method
Income method (D) Value added method
Short run cost curves are influenced by:
Principles of return to scale(C)Law of variable proportion
Economies of scale (D) Diseconomies of scale
The term opportunity cost refers to:
Variable cost
Short run cost
Cost of one product in terms of production of others forgone
Cost related to an optimum level of production
33
Unit 2:- Organizational Behavior
The Concept and Significance of Organizational Behavior- Skills and Roles in
an Organization- Classical, Neo classical and Modern Theories of
Organizational Structure, Organizational Structure, Organizational Design,
Understanding and Understanding and Managing Group Behavior, Processes,
Inter- personal and Group Dynamics, Communication, Leadership, Managing
Change, Managing Conflicts, Organizational Development.
Nov 2017
Match the following and select the correct code of matching:
List - I List - II
F.W. Taylor (i) Fair day‘s pay for fair day‘s work
Henry L. Gantt (ii) Motion study
Frank and Lillian Gilbreth (iii) Graphic scheduling for planning and controlling
of work
Max Weber (iv) Bureaucratic organization
Code:
(a) (b) (c) (d)
(i) (ii) (iii) (iv)
(2) (i) (iii) (ii) (iv)
(iv) (iii) (ii) (i)
(iv) (i) (ii) (iii)
The achievement of goals with the least amount of resources is:
(1) Effectiveness (2) Efficiency (3) Productivity (4) Both (1) and (2)
Which one of the following is the fundamental rethinking and radical redesign
of business processes to achieve improvements in performance?
(1) Reengineering (2) Reorganizing
(3) Revisiting (4) Rescheduling
Match the following and select the code of correct matching:
List - I List - II
34
Motivating through rewards (i) Charismatic leadership and
penalties
Changing organization by creating (ii) Situational leadership and
communicating a vision
Influencing by dint of personality (iii) Transactional leadership and
charm
Modifying style with respect to (iv) Transformational leadership readiness of
followers
Code:
(a) (b) (c) (d)
(iii) (i) (ii) (iv)
(2) (iii) (iv) (i) (ii)
(iii) (iv) (ii) (i)
(iv) (iii) (ii) (i)
Which one of the following is not a „hygiene factor‟ of Herzberg‟s Two Factor
theory?
(1) Interpersonal relations (2) Working conditions
(3) Responsibility (4) Job security
JAN 2017
According to Henry Fayol, which one of the following combinations of qualities
are required in a manager?
Physical, mental, experience, educational and conceptual
Technical, human, conceptual, mental and moral
Physical, mental, moral, educational, technical and experience
Mental, moral, conceptual, educational, technical and experience
Neo-classical organization theory emphasizes on which one of the following?
Flat structure of organization
Tall structure of organization
35
Coordination by hierarchy
Unity of command
According to Graicuna‟s formula of span of management, if a superior has
three
Subordinates, what number of cross-relationships would be?
(1) three (2) six
(3) nine (4) eighteen
In Reddin‟s „Tridimensional Grid‟, which one of the following is a less effective
style of leadership?
(1) Developer (2) Missionary
(3) Executive (4) Bureaucrat
Assertion (A): Attribution theory is based on relationship between personal
perception and interpersonal behavior.
Reasoning (R): Since most „whys‟ are not directly observable, people must
depend
upon cognitions, particularly perception.
Codes:
(A) is right but (R) is wrong.
(A) is wrong but (R) is right.
Both (A) and (R) are right but (R) does not explain (A).
Both (A) and (R) are right and (R) explains (A).
JULY 2016
Which process is used by a person (perceiver) to deal with conflicting
messages, and conflicting data?
(1) Halo effect (2) The process of checking
(3) Perceptual defense (4) The process of reacting
Assertion (A): The physiological needs are essential for living but they are
determined by social environment.
36
Reasoning (R): These needs may be motivators in backward countries but in a
developed country, these needs are supposed to be satisfied, hence, they may
not be considered motivators.
Codes:
Assertion (A) and Reasoning (R), both are correct, but (R) is not right
explanation of (A).
Assertion (A) and Reasoning (R), both are correct, and (R) is correct
explanation of (A).
Assertion (A) is correct, whereas Reasoning (R) is incorrect.
Reasoning (R) is correct, whereas Assertion (A) is incorrect.
The basic emphasis of theory of organizational design is on
flat structure, decentralization and provision of informal organization.
(1) Neo-classical theory (2) Modern theory of systems approach
(3) Matrix organization theory (4) Classical theory
The result variables as the component of mathematical model for measuring
system‟s effectiveness and efficiency in management science include
(1) Measures of performance (2) Measures of effectiveness
(3) Payoffs and outcomes (4) All the above
Assertion (A): Reinforcement plays a central role in the learning process.
Reason (R): Reinforcement strengthens the response preceding it and induces
repetitions of the response.
Codes:
(A) is correct and (R) is the right explanation of (A).
(A) is correct but (R) is incorrect.
Both (A) and (R) are incorrect.
37
DEC 2015
Match the below mentioned aspects with their main behavioral disciplines:
AspectsBehavioral discipline
Leadership and stress management (i) Psychology
Group conflict management (ii) Anthropology
Cross-cultural analysis (iii) Sociology and Psychology
Power(iv) Political science
Codes:
a bcd
iv i ii iii
ii iii I iv
i iv ii iii
iv ii iii i
Theoperantconditioningorlearningapproachtobehaviorisbasedon
.
Lawofreinforcement(3)Lawofreproduction
Law of effect (4) Law of expectations
The principles by which the process of perceptual organization works was first
identified by Max Wertheimer in the year .
(1) 1918 (2) 1933 (3) 1924 (4) 1923
The leadership theory of describes that effective group
performance depends on the proper match between the leaders style if interacting with
his subordinates and the degree to which the situation gives control and influence to the
leader.
Iowa State Leadership Studies‘; Ronald Lippitt and Ralph K. White
Managerial Grid‘; Blake and Mouton
Trait Theory‘; Stodgill and Barnard
Contingency Model‘; Fred Fiedler
38
When one individual or group wins at the expense of another individual or group, it is
termed as .
Zero-sum conflict (3) Line-staff conflict
Non-zero sum conflict (4) Formal-informal conflict
JUNE 2015
An individual‟s involvement with, satisfaction and enthusiasm for, the work he does, is
known as:
Employee engagement (3) Job satisfaction
Job involvement (4) Organizational commitment
Which of the following is not perceived as the basic element of motivation?
(1) Direction (2) Intensity (3) Performance (4) Persistence
A theory of motivation that is concerned with the beneficial effects of intrinsic
motivation and the harmful effects of extrinsic motivation is termed as:
Cognitive Evaluation Theory (3) Self-determination Theory
Self-efficiency Theory(4)Two-factor Theory
Match the items of List I with those of List II.
List I List II
Behavioral science Contribution
Anthropology (i) Attitude change
Psychology (ii) Attitude measurement
Social psychology (iii) Conflict
Sociology (iv) Organizational culture
Codes:
(a) (b) (c) (d)
(i) (ii) (iii) (iv)
(2) (iv) (ii) (i) (iii)
(iv) (ii) (iii) (i)
(ii) (iv) (iii) (i)
39
A relatively stable set of characteristics that influence an individual‟s behavior is known
as:
(1) Attitude (2) Learning (3) Perception (4) Personality
DEC 2014
Rita, a young enthusiastic manager has joined an organization as a project coordinator.
The project head counsels her to socialize less with non-management employees;
whereas the product head tells her to learn more about market issues. She should
socialize more with the non-management employees. Rita is confused, she is facing
(A) Inter-role conflict (B) Intra-role conflict
(C) Interdepartmental conflict (D) Hierarchical conflict
List – I consists of Motivation theories and List – II consists of the Motivation theorists.
You have to match them and indicate the correct match as per code:
Two-factor theory i. David McClelland
ERG theory ii. Fredrick Herzberg
Theory X and Theory Y iii. Douglas McGregor
Need theory iv. Clayton Alderfer
Codes:
abcd
ii iv iii I
i ii iii iv
i iv ii iii
iv iii ii i
The conflict over content and goals of the work is called
(A) Functional conflict (B) Process conflict
(C) Relationship conflict (D) Task conflict
theory of motivation ignores the inner state of the individual and concentrates
solely on what happens when he or she takes some action.
(A) Equity (B) Expectancy
(C) Goal-setting (D) Reinforcement
40
In the “Big Five” personality factors widely accepted personality traits are mentioned.
The trait of being dependable, organized, conforming and persevering on tasks is called
(A) Extroversion (B) Conscientiousness
(C) Agreeableness (D) Emotional stability
JUNE 2014
Which of the following is a correct match?
McClelland – ERG Theory
Skinner – Reinforcement Theory
Vroom – Equity Theory
Locke – ExpectancyTheory
The study of gestures and body postures for their impact on communication is known as
(A) Kinesics (B) Proxemics
(C) Semantics(D) None of the above
According to Organizational Culture Inventory (OCI), an organization in which
members are encouraged to work together in ways that meet higher order human needs
is classified as having a culture.
(A) Constructive (B) motivational
(C) Passive (D) high achievement
A matrix structure of organization
Reinforces unity of command
is inexpensive
is easy to explain to the employees
Gives to some employees more than one boss
Organizational development (OD) is a planned change plus
Evaluation
Intervention
Ability for self-renewal
41
Reinforcement
DEC 2013
The leadership prototype
is useful primarily for selection and training of employees
uses LPC (Least Preferred Co-worker) as an important component
depicts the image of a model leader
emphasizes leadership development
Which is not a perceptual process stage?
Attention/selection
Interpretation
Follow-through
Retrieval
Which statement is correct?
Goals act as the set of constraints that an organization must satisfy.
Deterministic goals specify the end or direction towards which the organization applies
its efforts, and they can be fairly determined.
Goals may be categorized as deterministic and constraint goals.
All of the above.
According to Fiedler‟s Contingency Model of Leadership, which one of the
following is not a situational variable?
Leader-Member relations
Task structure
Position power
Maturity of followers
Which is not a centralized communication network system?
Wheel Network
Y-shaped Network
Circle Network
42
Chain Network
SEPT 2013
The process through which individuals attempt to determine the causes behind others‟
behavior is known as
Perception
Attitude
Attribution
Social identity theory
Which theory of human motivation focuses on personal perceptions of the performance
process?
Adam‘s Theory of Inequality
McClelland‘s Need Theory
Vroom‘s Expectancy Theory
Alderfer‘s ERG Theory
Annual Reports, Balance Sheets, Brochures and Advertisements in
organizational communication are the means to aim at
Influencing
Image building
Group building
Credibility building
Attitudes 1. Beliefs that individuals possess certain characteristics because of their

membership in certain groups.
Job Satisfaction 2. Negative attitude toward the members of specific groups, based
solely on the fact that they are members of those groups.
Prejudice 3. Positive or negative attitudes held by individuals toward their jobs.
Stereo types 4. Relatively stable clusters of feelings, beliefs and behavioral intentions
toward specific objects, people or institutions.
43
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
Delegating 1. A function of a situation wherein a leader is effective only when

the style used to influence and alter the situation is appropriate.
Situational Theory 2. Low nurturing and low regulating behavior.
Grid training 3. A function of a situation wherein a leader permits subordinates to

take part indecision makingand permit themaconsiderabledegreeofautonomy.
Participative Leadership 4. A multi-step process designed to cultivate concern for
people and concern for production.
Codes:
abcd
(A) 1 2 3 4
(B) 2 1 4 3
(C) 3 2 4 1
(D) 4 3 1 2
JUNE 2013
The form of learning in which people acquire new behaviors by systematically

observing the rewards and punishments given to others is known as
Operant conditioning
Positive reinforcement
Modeling
44
Law of effect
Diffusion of routine information takes place through
Downward Communication
Upward Communication
Horizontal Communication
External Communication
An integrated group of activities to bring about a change is known as
Organization development
Interventions
OCTAPACE
Collaborative culture
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‘sERGTheory
Determining specific levels of performance for workers to attain and then striving to
attain them. 3. Equity Theory
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 :
abcd
(A) 1 2 3 4
45
(B) 4 3 2 1
(C) 3 1 4 2
(D) 3 4 1 2
Self-efficacy 1. Determining specific levels of performance for workers to attain

them.
Goal setting 2. The belief that one‘s efforts will positively influence one‘s
performance.
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.
Equity Theory 4. One‘s belief about having the capacity to perform a task.
Codes :
abcd
(A) 1 2 3 4
(B) 4 1 2 3
(C) 3 4 1 2
(D) 2 3 4 1
DEC 2012
When analyzing your business and its environment, it is useful to carefully inspect
Threats
Opportunities
Strengths and weaknesses
All of the above
Which of the following is an example of an external threat?
Decreased competition
46
New Trade Regulations
Global Sales Potential
Economies of Scale
Expectancy Theory of Motivation was propounded by
Porter and Lawler
McGregor
Vroom
J. Stacy Adams
Which one of the following is not a step in planning?
Establishing objectives
Developing premises
Determining alternative courses
Identifying needs of employees
Planning is looking ahead and control is
Scanning environment
Looking back
Setting targets
Defining objectives
JUNE 2012
Who divided all activities of the organizations into six groups; Technical,
Commercial, Financial, Security, Accounting and Managerial?
Peter Drucker
D. E. McForland
Henry Fayol
George R. Terry
47
What are the elements that a Mission Statement of an Organization should include?
Self guidelines for Business Operations
Identifies the reasons for existence of a company and its responsibilities to the
stakeholders.
Identifies the firms‘ customers and their needs and matches them to the products and
services.
All of the above (A), (B) and (C).
Changes in population characteristics such as age, gender, race, marital status, income
and education are examples of change:
Demographic
Cultural
Geographic
Diversity
Which of the following is not included as Micro-Environmental Variables?
Prevailing economic and political conditions.
Emerging new technologies
Financial conditions and culture
None of the above
During his days at Midvale Steel Company F.W. Taylor saw that employees soldiering
– deliberately working at a pace slower than their capabilities. He identified that, worker
indulge in soldiering primarily for the following reasons:
Fear of losing jobs if they increase their output.
Faulty wage systems.
Out-dated methods of working
All of the above
48
DEC 2011
Employees with high self-esteem set
Higher goals for others
Higher goals for themselves and lower goals for others
Higher goals for themselves
None of the above
Need for achievement goes with
F.W. Taylor
Hertzberg
McGregor
McClelland
An organizational memory includes the following except
Information that employees possess
Knowledge embedded in the organization‘s systems and structures
Documents
Knowledge that is not documented
People should be held accountable for their own behavior, and if holding people
accountable for their own behavior entails capital punishment, then so be it. However,
no person should be held accountable for behavior of others over which he or she had
no control. Which of the following is the most logical conclusion of the argument
above?
People should not be held accountable for the behavior of other people.
People have control over their behavior.
People cannot control the behavior of other people.
Behavior that cannot be controlled should not be punished.
49
Nominal group technique is
A consensus planning tool, generally used by groups to discuss debate and decide on
issues of strength identification, problems and solutions.
A consensus planning tool to arrive at decisions on issues, for instance man-power

requirement, by involving group of experts through blind rounds of communication
A majority based decision making tool
None of the above
JUNE 2011
Long – lasting beliefs about what is important in a variety of situations, that guide
our decisions and actions are:
Values
Ethical dimensions
Priorities
Desires
Figure – Ground Theory explains the process of
(A) Cognition (B) Sensation
(C) Perception (D) Motivation
Successive re-enforcements resulting in desired behavior are
Mentoring
Motivation
Shaping
behavior-modification
Psychological contract is related to
Job – person fit
50
Role – person fit
Organization – person fit
None of the above
Equity is called as
Equality of all
Standard performance
Comparative sense of justice to self
None of the above
DEC 2010
Which of the following is anobjective of human resource management?
Productivity
Quality of work life
Organizational change
All the above
Motivation implies that theemployees in an organization
Exert more effort toaccomplish the desiredgoals of the organization.
Exert more effort toaccomplish the individualgoals.
Exert more effort toaccomplish the commongoals of employees.
Exert more effort toaccomplish the desiredgoals of the employer, employees and
theGovernment.
Communication can be
Oral
Written
Oral and Written
51
None of the above
Which of the following is notconsidered as a leadership style?
Task oriented leadershipstyle.
Society oriented leadershipstyle.
Employee orientedleadership style.
Autocratic leadership style
Which of the following method hasnot been given a statutory form in India?
Conciliation
Mediation
Voluntary Arbitration
Adjudication
June 2010
A situation where management isunable to provide employment dueto non-
availability of work iscalled
I. Lock out II. Lay off
III. Termination IV. Closure
Find the correct combinationaccording to the code.
(A) I & II (B) II & III
(C) I & III (D) II & IV
Which one of the settlementmethods is not relevant here fordisputes?
Collective Bargaining
Compulsory Adjudication
Reference to Civil Court
Which of the following shows asituation of Trade Union rivalries in India?
Different Unions indifferent organizations.

52
More unions in the sameorganizationhavingaffiliation with differentpolitical parties
andrepresenting the same typeof workers.
More unions in the same organization all representing different types of workers.
None of the above.
Reduction of Labor Force is called
Termination
Retrenchment
Lay-off
Right sizing
DEC 2009
In Maslow‟s need hierarchy theory, which of the following is not high order needs?
(A) Safety (B) Social
(C) Esteem (D) Self-Actualization
Feeling arising out of inadequate definition of roles is known as
(A) Role ambiguity (B) Role conflict
(C) Role perception (D) Role expectation
A type of group discussion process in which members of the group are

encouraged to generate as many imaginative and creative ideas in a relatively
short period of time is known as
(A) Brain storming (B) Group working
(C) Simulation (D) Group effect
The amount of satisfaction an individual anticipates from a particular outcome is known

as
(A) Theory Y (B) Theory Z
(C) Valence (D) Stress
53
A personality characteristic indicating one‟s willingness to do whatever it takes to get
one‟s own way is known as
(A) Locus of control (B) Machiavellism
(C) Job characteristic model (D) Personality legitimacy
JUNE 2009
Which of the following is not one of the ego states of transactional analysis?
Child (C) Adult
Young (D) Parents
Where anchors are illustrations that help to define as superior, average or below
average, the behavior of the employee, the rating scale is known as:
Behavioral expectation scale (C) Forced choice description
Behavioral observation scale (D) Grading scale
In the decision tree model of vroom and yetton the style when the leader shares the
problem with subordinates as a group, obtains collective ideas, and then makes the
decision is identified as:
(A) AI (B) A I I (C) CI (D) CII
Leaders who provide individualized consideration and intellectual stimulation and

who possess charisma is known as:
Transactional Leaders (C) Situational Leaders
Transformational Leaders (D) Visionary Leaders
The drive to become what one is capable of becoming is:
Self-Awareness (C) Self-Efficiency
Self-Actualization (D) Self-Esteem
Which of the following is not one of the career anchors?
Managerial competence (C) Personal competence
Technical - functional competence (D) Security

54
Theory Z has been propounded by:
McGregor (C) Maslow
Ouchi (D) Skinner
Which of the following is not within the scope of Adjudication?
Conciliation (C) Industrial Tribunal
Labor Court (D) National Tribunal
55
Unit III:-Human Resource Management
Concepts and Perspectives in HRM- HRM in Changing Environment, Human Resource
Planning, Objectives, Process and Techniques, Job Analysis- Job Description, Selecting
Human Resources Induction, Training and Development, Exit Policy and Implications,
Performance Appraisal and Evaluation, Potential Assessment, Job Evaluation, Wage
Determination, Industrial Relations and Trade Unions, Dispute Resolution and
Grievance Management, Labor Welfare and Social Security Measures.
N0V 2017
Assertion (A): Promotion is a move within the organization to a higher position that
has greater responsibilities and requires more advanced skills.
Reasoning (R): Promotion may not involve a raise in status but a hike in salary is a must.
Code:
(A) and (R) both are correct.
(A) and (R) both are incorrect.
(A) is correct whereas (R) is incorrect.
(A) is incorrect whereas (R) is correct.
Match the following and select the code of correct matching:
List - I List – II
Identification of leadership potential (i) Vocational Tests
Finding most suitable area of working (ii) Aptitude Tests
Discovering interest and potential (iii) Intelligence Tests for

acquiring skills
Measuring capacity to think, learn (iv) Personality Tests and

draw relationships
Code:
(a) (b) (c) (d)
56
(iv) (iii) (ii) (i)
(i) (ii) (iii) (iv)
(3) (iv) (i) (ii) (iii)
(4) (i) (iii) (ii) (iv)
Which one of the following is a facility to file anonymous complaints?
(1) Juke Box (2) Wide Box (3) Gripe Box (4) Hard Box
Which of the following is/are not gain sharing plan(s)?
Scanlon Plan
Rucker Plan
Employee Stock Option Plan
Improshare Plan
Code :
(c) only
(d) only
(c) and (d) both
(4) (b), (c) and (d)
In which one of the following methods of performance appraisal, predetermined

percentages of rates are placed in various performance categories ?
Alternation Ranking Method
Forced Distribution Method
Paired Comparison Method
Check - list Method
JAN 2017
Arrange the following steps of training and development process in the right
sequence:
Need analysis
57
Validation
Evaluation
Implement the programme
Instructional design
(1) a, e, d, c, b (2) a, e, c, b, d
(3) a, e, b, d, c (4) a, b, e, c, d
Which one of the following is related to „Standard of Personnel?
(1) Job Specification (2) Job Description
(3) Job Design (4) Job Evaluation
If an employee desires to pay more than the minimum required contribution under
the Employees‟ Provident Fund and Miscellaneous Provisions Act, 1952, then
Employer shall also pay an amount equal to the total contribution of employee.
Employer shall pay only half of the additional contribution of employee.
Employer is under no obligation to pay the additional contribution.
The act is silent regarding this matter.
Under the Employees‟ State Insurance Act, 1948, sickness benefit can be paid for
which one of the following maximum periods?
45 days in two consecutive benefit periods.
Which one of the following laws is enacted by the Central Government and
enforced by the State Governments?
The Employees State Insurance Act, 1948
The Employees‘ Provident Fund and Miscellaneous Provisions Act, 1952
Factories Act, 1948
58
The Mines Act, 1952
JULY 2016
Most job descriptions contain sections that cover –
(1) Responsibilities and duties (2) Job summary
(3) Working conditions (4) All of the above
Match the items of List – I with the items of List – II. The items relate to
evaluation and follow-up of training process.
Results i. Document the learner‟s immediate response to the training.
Learning ii. Note supervisor‟s reactions to learner‟s performance following

completion of the training.
Reaction iii. Use feedback devices or pre and post tests to measure what learners have
actually gained.
Behavior iv. Determine the level of improvement in job performance
Codes:
a b c d
iii ii i iv
iv iii i ii
i ii iii iv
iv i iii ii
Which one of the following processes allows top management to diagnose the
management styles of supervisors, identify potential, employee problems, and take
corrective action with individual supervisors as necessary?
MBO
Strategic performance appraisal
Organization Development
Upward feedback
59
Statement – I: In competency or skill-based pay, employees are paid for the range,
depth and types of skills and knowledge they are capable of using rather than for
the job they currently hold.
Statement – II: Broad banding results into increase in salary grades and ranges from
3 or 5 to 10 or more.
Codes:
Only Statement – I is correct.
Only Statement – II is correct.
Both Statements – I and II are correct.
Both Statements – I and II are incorrect.
Which one of the following is not a labor law related to wages?
The Workmen‘s Compensation Act, 1923
The Payment of Bonus Act, 1965
The Payment of Wages Act, 1936
The Minimum Wages Act, 1948
DEC 2015
Which one of the following statements is not true in the case of Human
Resource Management?
(1) It performs developmental function (2) Employees are motivated by salary
(3) It is proactive in nature (4) It consists of various sub-systems
Match the items given in the ListI and ListII and choose the correct option:
ListIListII
Personnel replacement chart (i) A chart prepared for each position in a company
to show possible replacement candidates and their qualifications
Job posting(ii) The ongoing process of systematically identifying, assessing and
developing organizational leadership to enhance performance
60
Succession planning (iii) Company records showing present
performance and promotability of inside candidates for the most important
positions
Position replacement card(iv)Publicizing an open job to employees and listing its
attributes, like qualifications, supervisor, working schedule, etc.
Codes:-
(a) (b) (c) (d)

(ii) (i) (iii) (iv)
(iii) (i) (iv) (ii)
(iv) (ii) (i) (iii)
(4) (iii) (iv) (i) (ii)
Which one of the following training methods is not a managerial „on-the-job training
method?
Coaching (3) Job Rotation
Action Learning (4) Management Games
to deal with employee indiscipline provides the offender every opportunity to

state his side of the case.
Punitive approach (3) Humanistic approach
HRD approach (4) Judicial approach
Which one of the following is a disadvantage of Critical Incident Method as a tool of

performance appraisal?
Difficult to rate or rank employees relative to one another
Time - consuming
Can cause disagreements among employees and may be unfair if all employees are, in
fact, excellent
Employee‘s appraisal results depend on employer‘s choice of cut-off points
Assertion (A): The more differentiated the HR environment, the more

uncertain it shall be:
Reason (R): Organizations are dependent in an environment where human

resources are not widely available.
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(1) Both (A) and (R) are correct
(2) (A) is correct and (R) is the right explanation of (A)
(3) (A) is correct but (R) is not the right explanation of (A)
(4) Both (A) and (R) are incorrect
Which one of the following is a type of interview where a series of job-related questions
are asked that focus on how the candidate would behave in a given situation?
Behavioral interview (3) Situational interview
Job-related interview (4) Structured interview
Consider the following statements:
Sensitivity training was developed by Kurt Lewin
In-basket exercise is a simulated training method
Depth interview is also known as Directive Interview
Job evaluation is carried out for promoting job satisfaction Which
of the above statements are true?
Only (a) and (c)
(3) (a), (b) and (c)
Only (a) and (b)
(4) (b), (c) and (d)
Behaviorally Anchored Rating Scale (BARS) consists of the following steps:
Reallocate incidents
Develop performance dimensions
Generate critical incidents
Develop final statements
The correct chronological order of these steps is:
(1) (a), (b), (c), (d)(3) (c), (b), (a), (d)
(2) (b), (c), (a), (d) (4) (a), (c), (b), (d)
62
Consider the following elements:
(a) Actors (b) Inputs (c) Context (d) Output (e) Ideology
Which of these are not the elements of John Dunlop‟s Framework of Industrial
Relatives System?
(1) (a) and (b) (2) (a) and (e) (3) (b) and (d) (4) (a) and (d)
DEC 2014
Given below are four statements. Some of the statements are incorrect. You have to
choose the correct one.
A satisfied employee is a motivated employee.
Employees who are happy ―being around‖ are good contributors to the organization.
Motivated employees do not need engagement.
Customer loyalty has been found to be positively correlated with employee

engagement.
The author of the book „The World is Flat: A Brief History of the Twenty First Century‟
is
(A) Thomas L. Friedman (B) RaghuramRajan
(C) Michael Armstrong (D) VineetNayyar
ESOP stands for and was developed by
Employee Stock Ownership Plans; Wallace Forbes
Employee Stock Ownership Programs; Louis Kelso
Employee Stock Ownership Plans; Louis Kelso
Employee Share Ownership Programs; Louis Kelso
Match items given in List – I, with those in List – II:
Predictive analytics to help anticipate

the result of HR strategy i. Job Specification
63
Statement of purpose, scope, duties,
task and responsibilities of job ii. Ernest J. McCormick
Position Analysis Questionnaire iii. Job Description
Statement of qualifications and qualities

required of an employee to be successful iv. Workforce Analytics
Indicate the correct code:
Codes:
abcd
iv iiiii i
i ii iii iv
i iv ii iii
ii iv i iii
Match the items of List – I and List – II:
Procedural Rules i. An interim or final determination of any industrial dispute
Managerial Aspects ii. Terms and conditions of employment and control on

transfers, promotions etc
Substantial Rules iii. Mechanism of dealing with interpretation and

implementation of agreements
Award iv. Assignment of work and adjustment of workforce
Codes:
abcd
iv ii i iii
iii iv ii i
i ii iii iv
ii iii iv i
64
JUNE 2014

(Concept)(Term)
An ongoing and formalized effort that
focuses on developing enriched and more
capable workersi. Directionphase
A career development activity in which
managers make decisions regarding
the advancement potential of subordinatesii. Careerdevelopment
A career development activity that focuses
on preparingpeople to fillexecutivepositionsiii. Promotabilityforecast
Determining the type of career that employees
want and the steps they must take to realize
their career goalsiv. Succession
Codes :
abcd
i ii iii iv
ii iii iv I
ii iii i iv
i iii ii iv
32.A formal explanation of the knowledge, skills, abilities, traits and other characteristics
necessary for effective job performance is known as
Job Description
Job Analysis
Job Specification
Job Enrichment
aims to reduce reliance on arbitrary methods of pay determination by introducing

an element of objectivity in the way jobs are compared.
(A) Performance appraisal (B) Job evaluation
(C) Job enrichment (D) Attrition
65
Match the following :
The process of examining how work creates or

adds value to the ongoing processes in a business i. Job Enrichment
A fundamental rethinking and radical redesign of
business processes to achieve dramatic improvements in
cost, quality, service and speed ii. Job Design
The process of organising work into the tasks
required to perform a specific task iii. Work flow
analysis
The process of putting specialized tasks back together
so that one person is responsible for producing a whole
product or an entire service iv. Business process reengineering (BPR)
Codes :
abcd
i ii iii iv
ii i iv iii
iii iv i ii
iii iv ii I
The process of reorganizing a company‟s employees to improve their efficiency is

termed as
Right sizing
Down sizing
Retrenchment
Lay-offs
66
DEC 2013
Why is „procedural justice‟ important in the context of the management of
misconduct?
It reflects on the integrity of HR professionals.
It ensures that individuals have a sense that they have been treated fairly.
It reflects on the values and attitudes of top management.
It protects the interest of daily wage earners.
To be effective a points-based rating system requires:
Close management control
Comprehensive, reliable and consistent information
Objectivity in assessments
360° assessment
Too much of reliance on internal recruitment can result in
Reduced job performance
High labor turnover
Internal conflict
Poor group dynamics
The concept of stagnation in the context of HRM means:
Lack of appropriate selection criteria.
HR staff having very limited experience outside the HR functions.
Over-reliance on the internal labor market to fill new positions.
Lack of integration of recruitment and selection into the wider human resource
function.
Negotiations are an important aspect of the collective-bargaining process. What

do they ensure?
That conflict is contained within manageable boundaries.
67
That there is an agreement between all parties involved.
That conflict is always resolved.
It achieves a set of lasting agreements.
SEPT 2013
On-the-job training methods are not based on
Demonstration methods
Interactive methods
Vestibule Training methods
Apprentice training method
Minimum wage means
Wage sufficient to ensure the workman food, shelter, clothing, frugal comfort and
provision for evil days.
Wages paid in proportion to workman‘s work efficiency.
A wage sufficient to satisfy the workman‘s basic needs.
A sum of money paid under contract by an employer to a workman for services

rendered.
Which of the following statement is true?
Profit sharing is an agreement freely entered into by which the employees receive
share fixed in advance from the organization‘s profits.
An experiment in profit shares on a wide scale would therefore be definitely

undertaking a voyage of an unchartered sea.
Profit distribution under a profit sharing plan is used to fund employee retirement
plans.
All of the above.
Performance appraisal includes
Check reviews done by the supervisors.
Review his performance in relation to the objectives and other behaviors.

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Promote employees for self-appraisal.
All of the above.
Human Resource Strategy 1. A goal-directed approach in which workers and

their supervisors set goals together for the upcoming appraisal period.
Compensation 2. Time during which employees can choose not to be at work.
Flexi time 3. A legally required benefit that provides medical

care, income continuation and rehabilitation expenses.
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:
abcd
(A) 1 2 3 4
(B) 4 32 1
(C) 2 3 4 1
(D) 3 4 1 2
JUNE 2013
Human resource planning system includes
Human resource supply forecast
Human resource inventory
Corporate plan
All of the above
Who among the following propounded the concept of collective bargaining?
Beatrice and Gompers
Beatrice and Emerson
Gompers and Emerson
69
Gautt and Gompers
What are the benefits of human resource planning?
Achieve economy in hiring new workers.
Match personnel activities and future organization objectives efficiently.
Improve the utilization of human resources.
All of the above
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
Job Analysis 1. Determining worth of a job.
Job Evaluation 2. Examining how work adds value to the ongoing

process.
Job Design 3. Determining the pertinent facts about the job.
Work Flow Analysis 4. Organizing work into the tasks required to perform a
specific job.
Codes:
abcd
(A) 1 2 3 4
(B) 4 3 2 1
(C) 3 1 4 2
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(D) 2 3 1 4
DEC 2012
Human Resource Management (HRM) is a part of the broad Human Resource
Development (HRD) System, as this focus to
Selection, Induction, Training and Development
Operational and Organizational
(A) and (B) above
None of the above
Performance Appraisal is a double edged tool to
Create space for the employee to organizationally survive.
Offering challenges for promotion.
Accompanying the course of Demotion.
All of the above.
Wage determination is mostly done through tools which are
(A) Objective (B) Subjective
(C) Both of (A) & (B) (D) None of these
Job Evaluation criterion comes from
(A) Job manual (B) Job description
(C) Job specification (D) Job duration
Exit Policy primarily emphasizes in the broad sense, for policy makers as
Removing employees
Down sizing
Retiring people and rehabilitating them
Bringing new blood to the Corporate
JUNE 2012
71
Among the best known trait approaches to personality measurement – column A gives
Traits and column B states the name of authority defining them. Match the correct
combination
Traits Author
20 + needs Murray
16 traits Eysenck
3 traits Cattell
5 traits Costa &Merree
57.“Third Party intervention” as “Conflict Resolution” is
often required
seldom required
required as a mandate, when conflict remains unresolved
not at all considered as an option
The policy of introducing “New Blood” is
Steriotypic
Bureacratic as well as redtapic
Innovative and challenging, making the corporate dynamic
Innovative, challenging, but often resisted
An “Assessment Centre” is
(A) A place (B) A technique
(C) Both (A) and (B) (D) None of the above
“Organizational learning” and “Learning organization” are
(A) Same (B) Different
(C) Reverse to each other (D) Complementary to each other
DEC 2011
72
Which pattern reflects a pure executive form of management?
(A) Functional (B) Line
(C) Line and Staff (D) Committee
“A place for everything, everything in its place” is
(A) American Management (B) 5s Practice
(C) Peter Principle (D) A Chinese Practice
„Appreciative Enquiry‟ is
(A) Psychological Theory (B) Training Method
(C) Business etiquette (D) HR Quality
Robert Keplan is associated with
(A) A Benchmark Practice (B) Balanced Score Card
(C) Kaizen (D) Quality of Life
Strategic Intent of an Organization should clearly spell out
Who we are
Where are we going in the long term
How will we measure the performance
All of the above
JUNE 2011
The distinction between „job enrichment‟ and „job enlargement‟ is
Semantics
‗Job enrichment‘ is vertical loading while ‗job enlargement‘ is horizontal loading
‗Job enrichment‘ is the outgrowth of Hertzberg‘s theory while ‗job enlargement‘ is of

Maslow‘s orientation.
‗Job enrichment‘ is more for the individual and the other is more of organization
making
In „delegation‟
73
Only authority is delegated not responsibility
Both authority and responsibility are delegated
Only responsibility is delegated, not authority
Neither responsibility, nor authority is delegated
Cross-functional groups that operate across space, time and organizational boundaries
with members who communicate mainly through information technologies are
Telecomputers
Virtual teams
Teleworkers
Telemarketers
Career resilience means
Ability to switch careers
Ability to remain with same competencies refining suitably for organizations
Lack of capacity to remain in career
None of the above
Lock out means
An antithesis of strike
Refusal to employ any person in employment
The temporary closing of a place of employment
Illegal strike
DEC 2010
Which of the following method has not been given a statutory form in India ?
Conciliation
Mediation
74
Adjudication
What are the operative functions of HRM?
Organizing
Directing
Controlling
All of the above
Which one is not a performance appraisal method?
360° performance appraisal
Balanced score card
Rank method
Interview method
Selection of persons in an organization is the responsibility of
(A) Security Dept. (B) Personnel Dept.
(C) Trade Unions (D) Canteen Dept.
Labor Welfare facilities were incorporated in which legislation?
MRTP Act
Essential Commodities Act
Consumer Protection Act
Factories Act
JUNE 2010
The process of establishing the value of jobs in a job hierarchy is known as
(I) Job analysis (II) Job requirement
(III) Job evaluation (IV) Performance evaluation
Find the correct combination according to the code.

75
(C) III & IV (D) I & IV
Which of the following is the meaning of Human Resource Planning?
Evaluation of job
Satisfaction of the employees on the job
Appraising the performance of employees
It is the process by which an organization ensures that it has the right number and
kind of people at the right place, at the right time.
Induction refers to
Giving training to the employees.
Giving incentive to the employees.
Introducing employees to the organization culture and situation.
Increasing the morale of the employees.
Which of the following is not a fringe benefit?
(A) Transport (B) Subsidized canteen facilities
(C) Free education to the children(D) Dearness Allowance
„X‟ and „Y‟ theory was prepared by
Herzberg
Maslow
Porter and Lawler
McGregor
DEC 2009
81.A personality characteristic indicating one‟s willingness to do whatever it takes to get
one‟s own way is known as
(A) Locus of control (B) Machiavellism
(C) Job characteristic model (D) Personality legitimacy
76
The process of studying and collecting information relating to a specific job is known
as
(A) Motion study (B) Job analysis
(C) Job specification (D) Job enrichment
The horizontal expansion of jobs is termed as
(A) Job enlargement (B) Job enrichment
(C) Job sharing (D) Job involvement
A bargaining which is based upon zero-sum game is known as
(A) Integrative bargaining (B) Principled bargaining
(C) Distributive bargaining (D) none of these
The final link in the communication process that puts the message back into the system
as a check against misunderstandings is described as
(A) Decoding (B) Feedback
(C) Feedback Loop (D) None of these
JUNE 2009
The drive to become what one is capable of becoming is:
Self-Awareness (C) Self-Efficiency
Self-Actualization (D) Self-Esteem
Which of the following is not one of the career anchor:
Managerial competence(C) Personal competence
Technical - functional competence (D) Security
Theory Z has been propounded by:
McGregor (C) Maslow
Ouchi (D) Skinner
Which of the following is not within the scope of Adjudication?
Conciliation (C) Industrial Tribunal

77
Labor Court (D) National Tribunal
Outplacement services are provided to employees who have been:
Dismissed (C) Retired
Rendered surplus (D) Given voluntary retirement
What notice period is required for going on strike/lockout in public utility

services?
(A)One week (C) Six weeks

(B)Three weeks (D) Nine weeks
Modifying methods of performing a job to reduce the levels of skill or skills

demanded is known as:
(A)Multi - tasking (C) Multi - skilling

(B)De - skilling (D) None of these
78
UNIT- IV:Financial Management
Financial Management Nature and Scope, Valuation Concepts and Valuation of
Securities, Capital Budgeting Decisions, Risk Analysis, Capital Structure and Cost of
capital, Dividend Policy, Determinants, Long term and Short-term Financing
Instruments, Mergers and Acquisitions
N0V 2017
Indicate the correct code for the combination from the following regarding the
superiority of the wealth maximization over the profit maximization objective of the
financial management:
It takes into account long term stability and survival of the firm.
It takes care of all other objectives of the firm like exploring and expanding
markets, etc.
It is based on the assumption of perfect competition in the market.
It considers risk along with returns.
Code:
(1) (a), (b), (c) and (d)
(2) (b), (c) and (d)
(3) (a), (b) and (d)
(4) (a), (c) and (d)
The controller function of the financial management concerns with:
Advertising the public issue of the firm
Negotiating with banks for loans
Analyzing variance between standard costs and actual costs
Estimating the future cash flows from certain project
Capital Asset Pricing Model (CAPM) for risk measurement has been given by:
79
Sharpe and Lintner
Lintner and Treynor
Sharpe, Lintner and Treynor
Lintner, Modigliani and Miller
Beta (b) is a measure of:
(1) Systematic Risk (2) Unsystematic Risk
(3) Total Risk (4) Business Risk
Capital budgeting is concerned with:
Arranging cash resources for the project.
Managing the working capital of the firm.
Managing the fixed assets through repairs and renewals.
Evaluating the returns and investment in projects.
JAN 2017
The cost of external equity can be most appropriately computed as per the
(1) Earnings price ratio (2) Dividend price ratio
(3) Dividend price plus growth ratio (4) Capital assets pricing model
For the following items in List – I and List – II, indicate the correct code after
matching them:
Net income approach for capital structure a. Modigliani, M. and Miller
M.H.
Net operating income approach for capital structure b. Robert Bruner
Irrelevance of capital structure for the value of the firm. c. Ezra Soloman
FRICT analysis for capital structure d. David Durand
Codes:
i ii iii iv
80
abcd
d c a b
dcba
badc
Which one of the following is not a feature of „Preference Shares‟?
Prior claim on income / assets of the company over equity shareholders.
Redeemability after certain period.
Possessing voting rights on important issues of the company.
May possess the right to participate in surplus profits of the company.
The basic consideration for dividend pay-out for a company excludes which one of the
following?
Investment opportunities for the company
Expectations of the shareholders of the company
Legal and financial restrictions for the company
Stability of the dividend considerations
For the following two statements of Assertion (A) and Reasoning (R) indicate the
correct code:
Assertion (A): Shareholders Wealth Maximization (SWM) and not the profit
maximization is an appropriate and operationally feasible financial management goal.
Reasoning (R): There exists a principal-agent relationship between the shareholders and
the management of the company.
Codes:
(A) and (R) both are correct.
(A) is correct but (R) is incorrect.
(A) is incorrect but (R) is correct.
(A) and (R) both are incorrect.
81
JULY 2016
Match the items of List – I with the items of List – II:
Net present value i. Number of years required to recover the original cash outlay
invested in a project.
Payback period ii. It is the rate of return which equates the present value of anticipated
net cash flows with the initial outlay.
Internal rate of return iii. It is found out by dividing the average after-tax profit by
the average investment.
Accounting rate of return iv. It is the difference between the present value of cash
inflows and present value of cash outflows.
Codes:
abcd
iv iii ii i
iii i iv ii
iii iv i ii
iv i ii iii
An employee borrowed a 3 year loan of ` 10,000 at 9% from his employer to buy

amotorcycle. If employer requires three equal end-of-year repayments, then the annual
installment will be .
(1) Rs3, 633(2) Rs3, 951
(3) Rs3, 333 (4) Rs4, 233
M.M. Hypothesiswithouttaxesi. The cost of debt and cost of equity are assumed tobe
independent to the capital structure.
82
Net operating incomeapproachii. In the absence of taxes a firm‘s market value andthe
cost of capital remain invariant to the capitalstructure changes.
M.M. Hypothesis undercorporatetaxesiii. The cost of equity is assumed to increase

linearlywith leverage.
Net income approach iv. The value of the firm will increase with debt due tothe
deductibility of interest charges for taxcomputations and the value of the levered firm
willbe higher than the unlevered firm.
Codes:
abcd
ii iii iv I
ii i iv iii
i ii iii iv
iii iv i ii
Explicit Resale Price Valuation method pre-supposes that an investor keeps the share
only for few years and eventually sells the shares. The value of the share, therefore,
depends upon which of the following?
(I): The stream of dividends expected during investor‟s ownership.
(II): The price expected to be realized whenever investor sells the share.
Codes:
(I) is true, but (II) is false.
(I) is false, but (II) is true.
Both (I) and (II) are true.
Both (I) and (II) are false.
It is an act of acquiring effective control by one company over assets or management of

another company without any combination of companies?
(1) Consolidation (2) Acquisition
(3) Merger (4) None of the above
DEC 2015
83
If raw materials are in store for 2 months, processing time 2½ months, finished goods
remain in store for 15 days, debtors are allowed 60 days‟ credit and credit received
from suppliers of raw material is one month, the operating cycle period is:
(1) 7 months (2) 6 months (3) 6½ months (4) 5 months
Which of the following is not general disclosure requirement under accounting

standard-14?
Name and nature of Business (3) Accounting method followed
Description and number of shares issued (4)Particulars of scheme sanctioned
Under the Modified Accelerated Cost Recovery System (MACRS) an asset in the “5
year property class” would typically be depreciated over how many years?
(1) 4 years (2) 5 years (3) 6 years (4) 7 years
According to the concept of financial signaling, management behavior results in new

debt issues being regarded as “ news” by investors.
(1) Non-Event (2) Bad (3) Risk Neutral(4) Good
The Exchange of interest and/or principal payment between two parties is called:
(1) Swap (2) In the money (3) Forward (4) Put option
JUNE 2015
State the price of the share for the year t, if the rate of growth of the firm is 10%, EPS
and DPS for the year t11, are ` 3 and ` 2 respectively and the investors‟ required rate of
return is 20%.
(1) Rs30 (2)Rs20 (3) Rs25 (4) Rs10
In which of the following appraisal criteria of capital budgeting, the use of varying
opportunity cost of capital as a discount factor is possible?
NPV (b) IRR (c) Pay-back Period (d) ARR
Only (a) is correct. (3) (b) and (d) both are correct.
(a) and (b) both are correct. (4) Only (c) is correct.
84
According to the CAPM model, the cost of equity is represented by:
Rm1 (Rm2Rf) bj (3) bj1(Rm2Rf)Rm
Rf1(Rm2Rf)bj (4) Rm1Rf1bj
Where R indicates market rate of return, R indicates risk free rate of return and b
indicates beta of stock j
Anticipated annual dividend divided by the market price of the stock is referred
as:
Dividend Pay-out (3) Return on Equity
Dividend yield (4) Regular dividend
If the existing shareholder does not exercise his/her right or does not sell the right
entitlement:
his/her wealth will remain unaffected
his/her wealth will increase
his/her wealth will decrease
his/her wealth may increase or decrease
DEC 2014
Consider the following two statements:
Statement I:Bond value would decline when the market rate of interest rises. Statement
II: There is a positive relationship between the value of a bond and the interest rate .
Select the correct code:
Codes:
Statement I and Statement II both are correct.
Statement I is correct, but Statement II is incorrect.
Statement II is correct, but Statement I is incorrect.
Statement I and Statement II both are incorrect.
85
Match the following techniques of capital budgeting given in List – I, with one of the
Characteristics given in List – II and select the correct code:
List – I
NPV
IRR
Profitability Index
Payback period List –
II
Under certain circumstances its reciprocal is a good approximation of the rate of return.
Shareholder‟s wealth maximization
Possibility of multiple outcomes in single calculation
Measure of projects‟ relative profitability
Codes:
a b c d
i ii iii iv
ii iii iv I
iii iv i ii
iv I ii iii
In the case of redeemable debentures issued at discount and to be redeemed at par,
approximate cost of debenture (before tax adjustment) will be equal to
Rate of interest
Amount of interest divided by issue price
Amount of interest divided by par value
Amount of interest+ [par value – issue price]

Tenure of debenture
-----------------------------------------------------------------
Par value+ issue price
86
While granting the term loan, if lending institution puts a condition to reduce the debt
equity ratio by issuing additional equity share-capital or preference share capital, it is
known as
asset-related restrictive covenant
Cash flow related restrictive covenant
Control related restrictive covenant
Liability related restrictive covenant
According to Lintner‟s model of corporate dividend behavior, the dividend for the
year„t‟ is dependent on:
earnings per share for the year t
Dividend per share for the year t-1
Adjustment rate
Target pay-out ratio
market price of share
I, II and III are correct.
II, III, IV and V are correct.
I, II, III and IV are correct.
I, II, IV and V are correct.
JUNE 2014
The value of a bond with a given maturity period is
Present value of maturity value of the bond
Present value of annual interest plus present value of maturity value
Total amount of interest plus the maturity value received
Maturity value received
87
The capital budgeting appraisal criterion that is most appropriate in the situation of
capital rationing will be
Payback period
Internal Rate of Return
Net present value
Profitability index
For computation of cost of equity, arrange the following measures in the ascending
order of accuracy:
Capital Asset Pricing Model
Dividend-Price Ratio
Earning-Price Ratio
Dividend-Price plus Growth Ratio
Codes:
(A) I ---> III ---> II ---> IV
(B) IV --->I --->III ---> II
(C) III ---> II ---> IV ---> I
(D) II ---> IV ---> I ---> III
Match the items given in the two lists:
Debt securities without any explicit interest rate i. Floating Rate Bonds
Company issuing such bonds experiences less financial distress ii. Zero-coupon bonds
Coupon rate quoted as mark-up on the given rate iii. Income Bonds
Codes:
abc
i ii iii
88
i iii ii
ii iii I
iii i ii
Which one of the following types of working capital is financial through a portion of
long-term funds?
Gross working capital
Net working capital
Floating working capital
Regular working capital
DEC 2013
If the going rate of interest is above the coupon rate, the bond will sell :
At a Premium
At a Discount
At Par
None of the above
In case the sales or project‟s investment deviates from expected ones, it needs
Optimistic scenario analysis
Sensitivity analysis
Simulation analysis
Financial break-even analysis
„Trading on equity‟ refers to
Optimum capital structure
Appropriate capitalization
Capital gearing
Watered capital
89
Match the items of two lists, giving the correct code:
Dividend Capitalization Model i. John Lintner
Dividend Relevance Model ii. James E. Walter
Dividend Irrelevance Model iii. Myron Gordon
Dividend Payout Model iv. Modigliani & Miller
Codes:
abcd
ii i iii iv
i iv ii iii
iii ii iv I
iv iii i ii
The excess payment by the new company to the amalgamating companies for the
appraised value of the assets and liabilities taken over is accounted as
Capital Reserve
Bonus Share Capital
Goodwill
Amount paid for the acquisition of the brand
SEPT 2013
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.
Poison Put
Bear Hug
Poison Pill
90
None of the above
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?
Certainty Equivalent Approach
Probability Distribution Approach
Risk-adjusted Discount Rate Approach
Decision-tree Approach
In which of the approach, the market value of the firm depends upon the EBIT and the
overall cost of capital
Net Income Approach
Net Operating Income Approach
Modigliani-Miller Approach
None of the above
Which is the assumption of Modigliani and Miller approach to cost of capital?
The firms can be classified into homogeneous risk class.
The capital markets are assumed to be perfect.
All investors have the same expectations from a firm‘s net operating income which is
necessary to evaluate the value of a firm.
All of the above.
(Functions of Finance) (Significance)
Financial Statements 1. Check on Financial Activities
Administration of Tax 2. Reduction of Tax Liability
Internal Audit 3. Allocation of Fund
Budgeting 4. Income Statement

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Codes:
abcd
(A) 1 2 3 4
(B) 4 3 2 1
(C) 4 2 1 3
(D) 2 3 4 1
JUNE 2013
Which ratio explains that how much portion of earning is distributed in the form of
dividend?
Dividend – Debt Ratio
Equity – Debt Ratio
Pay-out Ratio
Earning – Yield Ratio
Modern approach to financial management is
The total fund requirement of the firm.
The asset to be acquired.
Payment of dividend to shareholders.
I only
II only
II & III only
I, II & III
Participating preference shares are those which participate in the
General meeting of the company
Voting
Profits over and above their fixed dividend
92
Management of the company
Which of the following is one of the critical assumptions of Walters‟ Model?
All financing is done through retained earnings; external sources of funds like debt or
new equity capital are not used.
The retention ratio, once decided upon, is constant. Thus, the growth rate, (g = br) is
also constant.
The capital markets are perfect and the investors behave rationally.
All of the above.
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-IList-II
(Statement)(Terms)
Preventinghostile takeover1. Managementbuyout
Leveragedbuyout2. Green mail
Accounting formerger3. Pooling ofinterest
Financing formerger4. Cash offer
Codes:
abcd
(A) 1 2 3 4
(B) 2 1 4 3
(C) 2 1 3 4
(D) 3 4 21
DEC 2012
The goal of financial management is to
Maximize the wealth of Preference Shareholders
Maximize the wealth of Debenture holders
93
Maximize the wealth of Equity shareholders
All of the above
The Internal Rate of Return (IRR) is determined where
The Net Present Value is positive
The Net Present Value is negative
The Net Present Value is zero
None of the above
The Tax shield would result in
increase in tax liability
Increase in EPS
Decrease in EPS
Decrease in tax liability
Codes:
(ii) and (iv)
(i) and (iii)
(i) and (iv)
(iii) and (iv)
Which of the following is a main method of issue of stocks?
Vendor placing
Public issue through Prospectus
Private placements
None of the above
The Capital Asset Pricing Model (CAPM) establishes the relationship between
Risk and EPS
Risk and value of the firm
94
Risk and the required rate of return
None of the above
JUNE 2012
The value of the firm is maximized when the
Market price of equity share is maximum
Market price of equity share is minimum
Market value of debt is maximum
(D)None of the above
Which of the following is the main assumption of Waltar Valuation Model?
All financing is done through Retained earnings and external sources of funds.
With additional investment the firms business risk will change.
There is a change in the key variables such as EPS and DPS
None of the above
Which of the following is an important money market instrument?
Debentures
Commercial Paper
Public Deposits
None of the above
The method of payment in Mergers and Acquisitions may include
Cash
Loan stock
Ordinary shares
Convertible loan stock
(i) & (iii) only
(i) & (ii) only
95
(i), (ii), (iii) and (iv)
(ii) & (iv) only
Working capital refers to the capital mobilized for meeting
Long-term financial needs of the company
To meet day-to-day financial obligations of the company
To meet the future financial requirements of the company
DEC 2011
In an endeavor to maximize corporate value, a finance manager has to factor in the
following
Optimization Principle
Risk-return Principle
Marginal Principle
All the above
The term financial engineering is related to
Cost of production
Financial restructuring
Product planning
Capital issue
Value of the merged firm shall be
Less than the acquired firm
More than the acquirer
Greater than the target and the acquirer
96
None of the above
When borrowing is less than equity, the company is said to be
Trading on equity
Trading on thick equity
Trading on thin equity
None of these
(Types of Debt) (Elements)
Secured debt 1. Mortgage on Assets
Unsecured debt 2. Non-mortgage on Assets
Convertible debt 3. Option
Redeemable debt 4. Payment
Codes:
I II III IV
(A) 1 3 2 4
(B) 2 1 3 4
(C) 3 1 4 2
(D) 1 2 3 4
JUNE 2011
Which is the task of a finance manager?
Investment decision
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Dividend decision
Management of income
All of the above
Which method of capital budgeting focuses on liquidity of a project?
Net present value
Profitability index
Payback period
Internal rate of returns
Which statement is true about deep discount bonds?
These are in the form of low interest bonds
These bonds are sold at a discounted value and on maturity face value of the bond is
paid to the investors
There is no interest payout during lock-in period
None of the above
Financial leverage is
EBIT × 100
Sales
EBIT
EBT
Sales Fixed
Assets
Profit× Capital
Sales
Match the following
List–I (items / method) List – II (used / Application)
Rate of return method 1. Capital budgeting

98
Purchase consideration 2. Merger
Diminishing Balance Method 3. Depreciation
Fifo Method 4. Stock valuation
Code:
I II III IV
(A) 1 3 2 4
(B) 3 2 4 1
(C) 1 2 3 4
(D) 1 4 3 2
DEC 2010
Which one of the following represents number of years required to recover the initial
investment?
Accounting rate of return
Payback period
Internal rate of return
Net present value
Other things being equal, stocks which are highly liquid command
Higher dividend payout ratio
Lower dividend payout ratio
Higher P/E multiples
Lower P/E multiples
Weighted Average Cost of Capital may contain
Cost of Equity
Cost of Debt
Cost of goods purchased
99
Cost of initial investment
Find the correct combination according to the code:
I, II & III are correct.
II, III & IV are correct.
III & IV are correct.
I & II are correct
Long term sources of finance may contain
Retained earnings
Inter corporate deposits
Debentures
Preference share capital
I, III & IV are correct
II, III & IV are correct
II & III are correct
II & IV are correct
When a firm proposes to acquire another firm, the merger proposal may be viewed as a
Working capital management proposal
Capital budgeting proposal
Financing decision
Dividend decision
JUNE 2010
Which of the following formula is used to calculate Pay Back Period when cash inflows
are constant?
Fixed Assets/Current Assets
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Fixed Assets/Current Liabilities
Initial Investment cost/Annual cash inflows
None of the above
The P/E ratio approach to stock valuation is also known as
Earnings multiplier approach
Dividend discountingapproach
Required rate of return
None of the above
The capital structure theories which argue that capital structure is relevant to the value
of firm contain
Net Income Approach
Net Operating Income Approach
Traditional Approach
Modigliani and Miller Approach
I & II are correct.
I & III are correct.
II & IV are correct.
Short term financing instruments may contain
Commercial Paper
Public Deposits
Term Loans
Trade Credit
I, II & III are correct.

101
II, III & IV are correct.
I, II & IV are correct.
For calculating weighted average cost of capital, cost of each source of capital is
multiplied by proportion applicable to it. The proportions may be based on
Book values only
Target capital structure only
Market values only
All of the above
DEC 2009
Internal rate of return method applied for capital budgeting decision
Allows to take different discount factors.
Uses cost of capital as discount factor.
May give more than one IRR.
Distinguishes between the IRR for lending and borrowing decision.
Beta in the context of security analysis indicates
(A) Systematic risk (B) Unsystematic risk
(C) Total risk (D) All of the above
Assuming constant rate of growth of dividend, value of share will be equal to
P0 = D0 r –
P0 = D1 r –
P1 = D0 r +
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P1 = D0
r+ g
Theoretically, with the issue of rights share the value of existing shares
(A) Will increase (B) will not change
(C) Will reduce (D) may increase or decrease
When the cash flow outcomes of succeeding period depends on what has happened
before, the probabilities of succeeding period are known as
(A) Joint probabilities (B) conditional probabilities
(C) Simple probabilities (D) decision tree
A high risk, high-yield often unsecured bond rated below investment grade is known as
(A) Income-bond (B) Subordinated debentures
(C) Junk bond (D) Serial bond
JUNE 2009
The computation of NPV is based on the assumption that:
Cash flows for each year remain constant
Net present value can never be less than zero
Intermediate cash flows are being reinvested at the discount factor
Discount factor should remain constant throughout the life of the project
For determination of cost of equity the formula used is:
Rate of interest (1 - t)
Rate of dividend (1 - t)
Rate of Dividend (Face value - Issue Price) / n
(D)D1 + g
Po
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According to MM - Approach proposition - I, value of firm is:
Independent of capital structure
Dependent on capital structure
Dependent on tax-rate of the enterprise
Dependent on risk of the enterprise
A stable dividend policy indicates:
Stable earning/price ratio (C) Stable pay-out ratio
Stable price/earnings ratio (D) Stable earnings per share
The vertical merger represents merger of firms engaged in:
The same line of business
Different stages of production in an industry
Unrelated lines of business
All of the above
The degree of total leverage is equal to:
Percentage change in EPS/percentage change in sales
Percentage change in EBIT/percentage change in sales
Percentage change in EPS/percentage change in EBIT
Percentage change in sales/percentage change in EBIT
104
UNIT V- Marketing
Marketing Environment and Environment Scanning Marketing Information
Systems and Marketing Research, Understanding Consumer and Industrial
Markets, Demand Measurements and Forecasting, Market Segmentation,
Targeting and Positioning, Product Decisions, Product Mix, Product life Cycle,
New Product Development, Branding and Packaging, Pricing Methods and
Strategies, Promotion Decisions, Promotion Mix, Advertising, Personal Selling,
Channel Management, Vertical Marketing Systems, Evaluation and Control of
Marketing Effort, Marketing of Services, Customer Relationship Management,
Uses of Internet as a Marketing Medium- Other Related Issues Like Branding,
Market Development, Advertising and Retailing on the Net, New Issues in
Marketing
NOV 2017
Which one of the following is the demand state where “Consumers dislike the
product and may even pay to avoid it”?
(1) Unwholesome demand (2) Declining demand

(3) Negative demand (4) Latent demand
Evaluate the statements according to Brand Asset Valuator Model of Brand
Equity:
Statement (I): Knowledge measures the degree to which a brand is seen as different
from others as well as its pricing power.
Statement (II): Esteem measures perceptions of quality and loyalty or how well
the brand is regarded and respected.
Code:
Both the Statements are correct.
Both the Statements are incorrect.
Statement (I) is correct while Statement (II) is incorrect.
Statement (I) is incorrect while Statement (II) is correct.
If a coaching institute provides some supporting study material along with
teaching, then\ which one of the following service mix category would it be?
Hybrid offering
105
Major Service with accompanying minor goods and services
Tangible good with accompanying services
Pure service
Statement (I): A low market - penetration index indicates substantial growth
potential for all the firms.
Statement (II): Generally, price competition increases and margins fall when
the market - penetration index is already high.
Code:
Which one of the following is a system of partnerships and alliances that a firm
creates tosource, augment, and deliver its offerings?
Value network
Omni channel marketing
Integrated marketing channel system
Direct marketing channel
JAN 2017
Which one of the following components is not the part of broad marketing
environment?
Technological environment
Task environment
Demographic environment
Natural environment
The Coco Cola Company markets a wide range of different beverage products
including bottled water, soft-drinks, juices and sports drinks. Each product
appeals to a different segment. This is an example of which type of market
offering?
Differentiated marketing
Target marketing
106
Undifferentiated marketing
Intensified marketing
Temporarily reducing prices to increase short-run sales is an example of which
one of the following?
(1) Segmented pricing (2) Promotional pricing
(3) Dynamic pricing (4) Geographical pricing
Match the items of List – I with the items of List – II and indicate the code
of correct matching:
Brand elements i. The marketer‘s vision of what the brand must be and do for
consumers.
Brand line ii. All products, original as well as line and category extensions,
sold under a particular brand name.
Brand personality iii. Those trademark able devices that serve to identify and
differentiate the brand.
Brand promise iv. The specific mix of human traits that may be attributed to a
particular brand.
Codes:
a bc d
iii ii iv I
i ii iii iv
iii i iv ii
iv iii ii i
Statement – I: In developing advertising programme marketing managers
must always start by identifying the target market and buyer motives.
Statement – II: A company may run multiple ad campaigns at the same
time, each emphasizing different aspects of its brand and service.
Only Statement – I is correct.
Only Statement – II is correct.
Both Statements – I and II are correct.
Both Statements – I and II are incorrect.
107
JULY 2016
Out of the following, identify the key constituents for performance marketing of
Holistic marketing dimensions:
Customers
Brand and Customer equity
Employees
Ethics
Environment
Sales revenue
Financial community
Codes:
(1) (a), (b), (c) and (d) (2) (b), (d), (e) and (f)
(3) (c), (e), (f) and (g) (4) (a), (c), (f) and (g)
Which one of the following is a potential drawback of multibranding?

The company‘s resources may be spread over too many brands.
Consumers may become confused about the image of the main brand.
An over-extended brand name might lose its specific meaning for
consumers.
Different product features can appeal to consumers with different buying
motives.
When a firm improves the quality and increases the price of a product in relation
to a competitor making a price reduction, the firm is
.
Moving its brand into a higher price-value position
Changing its target market
Moving its brand into a less competitive position
Adversely positioning its product
Which one of the following explains “the knowledge and courtesy of employees
and their ability to convey trust and confidence”?
(1) Empathy (2) Responsiveness
(3) Reliability (4) Assurance
108
Rich-media ads i. online ads that appear between screen
changes on a website, especially while a new screen is loading.
Pop-ups ii. Display ads that use eye-catching techniques such as float, fly, and
snapback.
Interstitials iii. Ads that users can block through the use of applications
developed by web browser providers.
Codes:
abc
i ii iii
ii i iii
ii iii i
iii i ii
DEC 2015
From the following set of information, which combination is correct to define

the process of perception in order to understand consumer behavior?
Selective Attention (c) Selective Retention
Selective Distortion (d) Selective Apprehension
Code:
Only (a) and (d) are correct (3) Only (b), (c) and (d) are correct
(2)Only (a), (b) and (d) are correct (4) Only (a), (b) and (c) are correct
When the company‟s Salesperson contacts the customer from time to time
with Suggestions about improved uses of the product or additional new
range of products, then it is called as:
Proactive Marketing (3) Reactive Marketing
Accountable Marketing(4) Relationship Marketing
A state of demand where major part of the market dislikes the product and may
even pay a price to avoid it, may be called as:
Declining Demand (3) Negative Demand
Overfull Demand (4) Distractive Demand
109
When the Companies pay less attention to its own costs or demands and bases
its price largely on competitors‟ prices, then it is known as:
Value pricing (3) Image pricing
Going rate pricing (4) Psychological pricing
from the given columns which of the combinations best describe the
concepts of product hierarchy?
Need family
Product family
Product class
Product line
The core need that underlines the existence of a product family
Group of items within a product line that share one of several possible forms
of the product
Group of products within the product family recognized as having a certain
functional coherence
All the product classes that can satisfy a core need with reasonable
effectiveness
Code:
Only (a) - (i), (b) - (iv) and (c) - (iii) are correct
Only (a) - (i), (b) - (iii) and (c) - (iv) are correct
Only (b) - (iv), (c) - (iii) and (d) - (ii) are correct
(a) - (i), (b) - (iii), (c) - (ii) and (d) - (iv) are correct
JUNE 2015
What are the four main components of holistic marketing?

Integrated Marketing, Internal Marketing, Product Positioning and
Performance Marketing
Integrated Marketing, Relationship Marketing, Social Marketing and
Relationship Marketing, Integrated Marketing, Internal Marketing and
Relationship Marketing, Integrated Marketing, Internal Marketing and
Social Marketing
110
Which of the following category of goods and services is most likely to
require an aggressive use of the selling concept?
Complementary Goods (3) Specialty Goods
Luxury Goods (4) Unsought Goods
The type of marketing that is the most recent to emerge is:

Person marketing (3) Services marketing
Product marketing (4) Social marketing
According to the theory, marketers can enhance demand for

a product by associating it with strong drives, using motivating cues and
providing positive re-enforcement.
Demand theory (3) Psychological theory
Learning theory (4) Two-factors theory
The most scientifically valid research is:

Experimental Research (3) Focus-Group Research
Observation Research (4) Survey Research
Which of the following statements is not correct?

Product Layout generally has continuous and Mass Production, mainly
assembly function.
Process Layout generally has Intermittent, Job-Shop, Batch Production, mainly
fabrication function.
Product Layout usually has general purpose equipments.
Process Layout is generally driven by fluctuating demand.
DEC 2014
Which of the following concepts holds that consumers prefer the
products which are easily available and are inexpensive?
(A) The product concept (B) The production concept
(C) The selling concept (D) The marketing concept
is the added value endowed to a product or service.
Brand equity (C) Brand loyalty
Brand image (D) Brand preference
111
Match the items/persons included in List – I with the items in List – II and
indicate the correct pairing through codes given below:
CCI i. Consumer buying decision process
Cognitive dissonance ii. Marketing Myopia
Everett M. Rogers iii. Diffusion of Innovation
Theodore Levitt iv. iv. Predatory Pricing
Codes:-
a b c d
(A)iv iii ii i
iii iv ii i
i ii iv iii
iv i iii ii
The step after „concept testing‟ in the new product development process is
(A) Business analysis(B) Marketing strategy development
(C) Product development(D) Test marketing
When the total market expands, the usually gains the most.
Market challenger
Market leader
Market follower
(D)Market niche
June 2014
In the model of consumer adoption of new products developed by Everitt
M. Rogers, the first category of people to adopt a new product is called:-
Early Adopters
Initial Adopters
First users
Innovators
PepsiCo used to enter the Indian market in the early 1980s.

(A) Mega marketing (B) Meta marketing
(C) Micro marketing (D) Multistage marketing
112
Pricing decisions are most complex at which stage of the product life cycle?
(A) Decline stage (B) Growth
(C) Introduction (D) Maturity
Branding seeks
To differentiate the product
To charge differential price
To sell the product in different countries
To give attractive name to a product
The most widely used method of collecting the primary data is

(A) Experimental Research (B) Observation Research
(C) Statistical Research (D) Survey Research
Dec 2013
Which of the following is direct marketing?

Face to-face marketing
Catalogue marketing
Direct mailing
Test marketing
In marketing research, primary data can be collected through

Observational Method
Survey Method
Experimental Method
All of the above
Holistic marketing does not include

Internal Marketing
Integrated Marketing
Financial Marketing
Which of the following is not a distinctive characteristic of services?

(A) Transparency (B) Intangibility
113
(C) Inseparability (D) Perishability
To remain dominant, a market leader looks for

Ways to expand total market demand
Attempting to protect its current share
Increasing its market share
all of the above
Consider the names of organizations/persons listed in List – I and their

role/functions given in List – II:
Bureau of Indian
Standards (BIS) i. Measurement of Service quality
Zeithmal, Parasuraman and Berry ii. Measurement of quality of Educational
service
ISO iii. Standardization and quality control of
Manufacturedgoods
National Assessment and accreditation Council iv. Quality marking and
Certification of standards
Indicate the correct matching:
Codes:
abcd
i ii iii iv
ii iii iv i
iv ii iii i
iii i iv ii
SEPT 2013
A deliberate and careful choice of organization, product, price
promotion, place strategies and policies best define the concept of
Marketing Mix
Product Mix
Market Penetration
Market Segmentation
114
Rational motives in buying process are explained as
Motives based on careful, logical reasoning and self-acceptance.
Motives based on sensual satisfaction, fear and entertainment.
Activity buyer adopts to satisfybuying needs.
All of the above.
Which of the following combination, according to hierarchy of effects model is
correct?
Awareness – Liking – Knowledge – Conviction – Preference – Purchase.
Awareness – Knowledge – Liking – Preference – Conviction – Purchase.
Awareness – Liking – Knowledge – Conviction – Purchase – Preference.
Awareness – Preference – Knowledge – Liking – Preference – Purchase.
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.
(Statement) (Terms)
Brands which are evaluated for the purchase decision. 1. Consideration
set
Brands which are considered by the buyer for evaluation. 2. Evoked set
Brands which are disliked and avoided. 3. Inept set
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
48.“Marketing concept is the recognition on the part of management that all
business decisions at the firm must be made in the light of customer needs and
wants, hence that all marketing activities must be under one
115
supervision and that all activities of a firm must be coordinated at the top in the
light of market requirements.”
Who said it?
Lazo and Carton
Schwartz G
King RL
C.P. McNamara
JUNE 2013
What kind of pricing strategy a firm should normally follow for marketing
electronic goods?
Penetration pricing strategy
Skimming pricing strategy
Cost plus pricing strategy
All of the above
Note:- The answer for the question is not given by UGC
Which fact is true about on-line marketing?
A website which is user-friendly.
A website which is user-friendlyand regularly updated.
A website which is user-friendly regularly updated and make product‘s
graphical image available.
A website which is user-friendly, regularly updated, provides product‘s
graphical image and product‘s price is competitive.
Which of the following function involved under marketing
management‟s function?
Collection of market information
Marketing coordination
Marketing controlling
All the above
116
Codes:
(A) 1 & 2
(B) 2 & 3
3 only
4 only
Two statements are given below:
Statement – I: Product concept of marketing holds that consumers would favor
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:
Statement I is correct and II is wrong.
Statement II is correct and I is wrong.
Both statements are correct.
Both statements are wrong.
List-I List-II
Differentiation 1. How familiar and intimate consumers are with the brand.
Esteem 2. The degree to which a brand is seen as different from
others.
Relevance 3. How well the brand is regarded and respected.
Knowledge 4. The breadth of a brand‘s appeal.
Codes:
abcd
(A) 1 2 3 4
(B) 2 3 4 1
(C) 3 4 1 2
117
(D) 4 3 2 1
DEC 2012
„Marketing is a human activity directed at satisfying needs and wants through
Exchange process‟; is the statement of
Cundiff ad Still
Kenneth Andrews
Philip Kotler
Kishwar S. Kan
Promotion mix includes
Advertising, publicity, personal selling and sales promotion
Physical attributes, brand, package and product life cycle
Brand name, product benefits, delivery and credit
Transportation, material handling, packaging and customer service
Which of the following is not the stage of product life cycle?
Introduction
Growth
Market segmentation
Decline
Which is the basic form of Innovation?
Introduction of novel production process
Improvement and development of existing process
Improvement and development of existing firm
All of the above
The scientific system of collecting and analysis of data pertaining to market is
known as
Production Research
Advertising Research
118
Marketing Research
None of the above
JUNE 2012
Which of the following statement is true?
The essence of marketing is a transaction of an exchange.
Marketing–orientation is philosophy, which has to pervade the
organizationstructure
Marketing is also a managerial function involving analysis, planning and
control marketing activities in an organization
All of the above
A marketing plan is composed of three basic components, namely
1. Objectives 2. Policies
3. Program 4. Procedure
5. Hints 6. Decision
7. Command 8. Periodic
9. Diversity
1, 2 and 3 only
6, 7 and 8 only
5, 7 and 9 only
2, 3 and 9 only
Which of the following is not the stage of new product development?
Idea Generation
Business Analysis
Test Marketing
Market Segmentation
Marketing research does not normally
119
Gather environmental information
Provide a continuous source of information
Relate to all aspects of marketing operations
Describe the current situation
Which of the following is not included in 7 P‟s of services marketing?
Physical evidence
People
Process
Marketing plan
DEC 2011
It is a set of procedures and sources used by managers to obtain everyday
information about developments in the marketing environment.
It is known as
Internal Records System
Marketing Intelligence System
Marketing Research System
Marketing Decision Support System
Match the List – I with List – II:
(Stage of the product life cycle) (Marketing strategy applied in the
stage of the product life cycle)
Introduction Stage 1. Market Modification
Growth Stage 2. Rapid Skimming Strategy
Maturity Stage 3. Enter New Market Segments
Decline Stage 4. Continuation Strategy
Codes:
I II III IV
(A) 3 2 4 1
120
(B) 2 3 1 4
(C) 2 3 4 1
(D) 4 2 1 3
It has been described as a cluster of complementary goods and services that are
closely related in the minds of consumers but are spread across a diverse set of
industries. It is known as
Market Place
Market Space
Meta-Market
Marketing Mix
Company‟s ability to provide individually differentiated product for each
consumer is called as
Digitalization
Disintermediation
Customerization
Connectivity
The qualitative value of an exposure through a given medium is related to
Reach
Frequency
Impact
All of the above
JUNE 2011
Arrange the following steps of a five-stage model of the consumer buying
process:
Evaluation of Alternatives
Need Arousal
121
Information search
Purchase Decision
Post Purchase behavior
Code
IV, II, III, I, V
III, II, I, IV, V
I, II, IV, III, V
II, III, I, IV, V
It refers to the total number of items in the Product Mix. It is known as
following.
The width of product mix
The length of product mix
The depth of product mix
The consistency of product mix
Given below are two statements, one labeled as Assertion (A), and the other
labeled as Reason (R). State the correct answer from code given below.
Assertion (A): Pure-click companies can be search engines, Internet service providers,
commerce sites, transaction sites, content sites and enabler sites.
Reason (R): Pure-click companies are those companies that have launched a
website without any previous existence as a firm.
Code:
(A) is correct, but (R) is wrong.
(A) is wrong, but (R) is correct.
Both (A) and (R) are wrong.
Match List-I and List-II. List
– IList – II
122
(Characteristics of Services) (Marketing Strategy applied
considering a characteristic of service)
Intangibility 1. Preparing a service blue
print showing each service and process in a flow chart.
Inseparability 2. Tangiblize the intangible
Variability 3. To train more service providers and build up
client confidence.
Perishability 4. Use differential pricing
Code:
I II III IV
(A) 2 1 3 4
(B) 2 3 1 4
(C) 1 3 2 4
(D) 2 1 4 3
A diverse collection of incentive tools designed to stimulate quicker buying of a
particular product or service by consumers or the trade is known as
Advertising
Personal selling
Publicity
Sales promotion
DEC 2010
Which of the following is not the element of promotion-mix?
Advertising
Place
Personal selling
Publicity
Which of the following is in correct order?
123
Product, Place, Promotion and Price
Product, Promotion, Place and Price
Product, Price, Promotion and Place
Product, Price, Place and Promotion
Which of the demographic variables is not used by marketers for demographic
segmentation?
(A) Gender (B) Age
(C) Occupation (D) Poverty
At which stage of the new product development, the launching of new product
will take place
Business Analysis
Test Marketing
Commercialization
Marketing strategy Development
If a company uses its company name for its entire range of products offered,
then it is called
Private branding
Corporate branding
Product-line branding
Specific product branding
One-level channel of distribution consists of
Producer – consumer
Producer – dealer – consumer
Producer – dealer – retailer – consumer
Producer – dealer – wholesaler – retailer – consumer
JUNE 2010
Which of the following is not included in 7 P‟s of services marketing?
(A) Process (B) People
124
(C) Pricing (D) Public relations
Which of the following is not a stage in the new product development?
Generation of ideas
Business analysis
Market segmentation
Test marketing
Industrial marketing involves
Business to Business
Business to Customer
Customer to Customer
Retailer to Consumer
The concept of Marketing Myopia is propounded by
Philip Kotler
C.K. Prahalada
Peter Drucker
Theodore Levitt
In which stage of product life cycle, the company takes decision whether to
maintain, harvest or drop the product?
(A) Introduction (B) Growth
(C) Maturity (D) Decline
Which of the following is the best technique to manage the existing products?
Ansoff Matrix
Balanced score card
BCG Matrix
Product life cycle analysis
125
DEC 2009
Who coined the term 4 Ps?
(A) Philip Kotler (B) Stanton
(C) Peter Drucker(D) McCarthy
In the buying decision process, what is the term used for a person who first
suggests buying the product?
(A) Consumer (B) Decider
(C) Initiator (D) Influencer
Which of the following is in order?
Product, place, price and promotion.
Price, product, promotion and place.
Promotion, place, product and price.
Product, price, place and promotion.
Which of the demographic variable is not used by marketers for demographic
segmentation?
(A) Income (B) Gender
(C) Family life cycle (D) Poverty
Which of the following indicates the distinction between Advertising and
Publicity?
Advertising is expensive, publicity is less expensive.
Advertising is through T.V., publicity is through print media.
Advertising is a paid form of communication;Publicity is not a paid form of
communication.
Advertising is through film stars, Publicity is through cricketers.
Which of the following order about product life cycle is correct?
Introduction, Maturity, growth and decline.
Introduction, growth, maturity and decline.
Introduction, decline, maturity and growth.
126
Growth, maturity, decline and introduction.
Companies that attack other firms including market leader in an attempt to build
market share are called
(A) Market followers (B) Market challengers
(C) Market penetrators (D) Market Nichers
JUNE 2009
Changes in the population characteristics such as age, gender, race, marital
status, income and education are the examples of:
Geographic characteristics (C) psychographic characteristic
Cultural characteristics (D) demographic characteristics
Which of the following is not constituent of promotion-mix:
Advertising (C) Direct marketing
Sales promotion (D) Publicity
Which of the following factors does not influence the pricing strategy of a firm?
Market (C) Cost
Competition (D) R&D
Who coined the term Marketing Myopia?
Peter Drucker (C) Philip Kotler
Stanton (D) Theodore Levitt
In the diffusion of innovation who are the people not willing to try out the
product?
(A) Innovators (B) Progressive people
(C) Early adopters (D) early majority
Which of the following is not a variable for segmenting the market?
(A) Sex (B) Age (C) Income (D) Sales
At which stage of new product development process, the launching of new
product will take place:
127
(A) Concept development (B) Marketing strategy development
(C) Test marketing (D) Commercialization
128
Unit VI:-Production Management
Role and Scope of Production Management:- Facility Location: Layout
Planning and Analysis , Production Planning and Control, Production Process
Analysis, Demand Forecasting for Operations, Determinants of Product Mix,
Production Scheduling, Work Measurement, Time and Motion Study, Statistical
Quality Control, Role and Scope of Operations Research, Linear Programming,
Sensitivity Analysis, Duality, Transportation Model, Inventory Control,
Queuing Theory, Decision Theory, Markov Analysis, PERT/CPM.
Nov 2017
Statement (I): Time study is an area of study whose fundamental purpose is to
set time standards for work using different methods.
Statement (II): Work measurement is a structured process of directly observing

and measuring (using a timing device) human work in order to establish the
time required for completion of the work by a qualified worker when working at
a defined level of performance.
Code:
Which one of the following combinations of the characteristics of the popular

layouts is not matching?
Factors Fixed Product Process Cellular

Layout Layout Layout Layout
(1) Material Fixed Path Variable Often high Variable
Travel Path Path path
(2) Process Ship Continuous Job or Small to
Building and small medium
Repetitive Batch batch
(3) Product Made to Standardized Diversified Diversified
order, low Product products products
volume using
129
common
operations
(4) Utilization Moderate Very high General High
of facilities Purpose
Ans. Option 1
In the context of distinguishing between forecasting and prediction, which one
of the following statements is false?
Forecasting is based on a theoretical model while prediction may be based on
intuition.
Forecasting reflects management‘s judgment after taking all available
information into account; while prediction involves the projection of the past
into the future.
Error analysis is possible in the case of forecasting while no error analysis is
done in the case of prediction.
No objectivity is found in the case of prediction.
An activity that consumes no time but shows precedence among activities is
known as:
(1) Slack activity (2) Successor activity
(3) Dummy activity (4) Critical activity
Which one of the following is not correct matching between level of facility
planning and type of activity?
Global level and site location and selection
Macro layout level and Site planning
Micro layout level and Cell design
Sub - Micro layout level and work station and Cell design
Jan 2017
Match the items of List – I with the items of List – II and select the code of
correct matching with regard to forecasting models for operations:
(Model Type (name)) (Description)
Delphi technique i. Causal quantitative model
130
Economic modeling ii. Quantitative model (Naive)
Exponential Smoothing iii. Qualitative model
Codes:
a b c
i ii iii
iii i ii
iii ii i
ii iii i
In which one of the following situations, a product-oriented layout is
appropriate?
A medical clinic
An automated carwash
A work Centre for welding, heat treating and painting
A home plumbing repair business.
A graphic tool to trace the interaction of several workers with one machine is
termed as
(1) Gang process chart (2) Flow process chart
(3) Activity chart (4) Operation chart
Which one of the following is a technique of statistical quality control used for
product control?
(1) R-chart (2) Sampling plan
(3) np-chart (4) control-chart
The decision-criterion in which a decision-maker selects an alternative that
maximizes H (criterion of realism) = [a × (maximum in column)] + [(1
a) × (minimum in column)] is called
(1) Laplace criterion (2) Hurwicz criterion
(3) Wald‘s criterion (4) Bayesian criterion
131
July 2016
Statement – I: Operation research is the application of scientific methods to the
study of alternatives in a problem situation with a view to providing qualitative
basis for arriving at an optimum solution in terms of goal sought.
Statement – II: Operation research is a quantitative commonsense
embracing observation, experiment and reasoning.
Codes:
(I) is correct but (II) is incorrect.
Both (I) and (II) are correct.
Both (I) and (II) are incorrect.
(II) is correct but (I) is incorrect.
Match the items of List – I with List – II:
PERT i. Strategies
CPM ii. Events
Game theory iii. Network
Codes:
abc
i ii iii
ii iii I
iii ii i
iii i ii
Statement – I: – X-chart, np-chart and R-chart are the techniques used for
product control under Statistical Quality Control.
Statement – II: Operating characteristic curve helps determine whether a
particular acceptance sampling plan meets both the product‟s and the
consumer‟s risk requirements.
132
Statement – I is incorrect while Statement – II correct.
Statement – I: When there are a large number of decision variables (more than
three) and constraints, iterative mathematical procedures like simplex method
can be used for product-mix decisions.
Statement – II: Monte Carlo is an approach for simulating the probability distribution
by associating and then selecting random numbers.
In the context of work study, an element is rated as 120% and the actual
readings (in minutes) are as under: 0.05, 0.06, 0.05, 0.05, 0.05, 0.06, 0.06, 0.05,
0.06, 0.06, what is the normal time for the element?
(1) 0.055 minutes (2) 0.060 minutes
Dec 2015
An input (such as variable cost per unit or fixed cost) for a model is an example
of a(n) ?
Stochastic variable (3) Algorithm
Decision variable (4) Parameter
Match the items of List I and List II and indicate the correct code: List I
List II
Operations Management Functions Activities
Capacity planning (i) Setting policy guidelines and
procedural details of making a watch
Quality Management (ii) the steering of the cars loaded in trucks
reaches the assembly line every morning and evening
133
Process Design (iii) Establishing rules and policies of which tablets are to be
accepted and others not to be
Location and Layout of (iv) A hospital can largely serve 500
patients at any time facilities
Code:
(a) (b) (c) (d)
(1) (iv) (iii) (i) (ii)
(2) (iv) (i) (iii) (ii)
(3) (ii) (iii) (i) (iv)
(4) (ii) (i) (iii) (iv)
Car enters the drive-through of a fast food restaurant to place an order, and then
it proceeds to pay for the food, and pick up the order. This is an example of:
(1) A multiphase system (2) a multichannel system
(3) Amultiguaue system (4) a multiphase and multichannel system
A manufacturer is considering five alternative locations for setting up its
factory. Using the information given in the table obtain a ranking and tell the
best location for setting the factory?
Table:
Factors Relativ Locatio Locatio Locatio Locatio Locatio
e n 1 n n n n
Weight 2 3 4 5
Availability 0.28 20 40 55 35 60
of
Infrastructur
e
Size of 0.18 30 30 80 60 40
Market
Industrial 0.15 80 30 50 60 50
Relation
Tax Benefits 0.09 80 20 20 20 10
Availability 0.09 70 70 50 50 45
of cheap
Labor
Nearness to 0.20 20 40 60 50 90
134
port
Code:
Location 2 (3) Location 4
Location 3 (4) Location 1 and Location 5
If the project completion time is normally distributed and the due date for the
project is greater than the expected completion time, then the probability that
the project will be finished by the due date is:
Undeterminable without more information
less than 0.50
Equal to 0.50
Greater than 0.50
June 2015
Which of the following statements is not correct?
Product Layout generally has continuous and Mass Production, mainly
assembly function.
Process Layout generally has Intermittent, Job-Shop, Batch Production, mainly
Product Layout usually has general purpose equipment.
Process Layout is generally driven by fluctuating demand.
Six-SIGMA quality indicates:
2.4 defects per thousand (3) 3.4 defects per thousand
2.7 defects per thousand (4) 3.7 defects per thousand
A manufacturing firm has four work stations, A, B, C and D in series with
individual capacity of processing 450, 390, 360 and 400 units per day
respectively and the actual output of the firm is 306 units per day. The system
capacity and system efficiency of the firm shall respectively be:
(1) 400 and 100% (2) 450 and 120%
(3) 360 and 85% (4) 390 and 95%
In the simplex method of solving an LP Problem, the product-mix column of the
initial solution contains:
135
Artificial variables only (3) Slack and artificial variables only
Slack variables only (4) Real variables only
If the optimal solution of an LP Problem is degenerate then:
The problem has multiple optimal solutions
The solution is not feasible
The solution is useless to the manager
None of the above
Dec 2014
„Large output per unit of space‟ is an orientation of which type of plant layout?
(A) Product layout (B) Process layout
(C) Fixed-Position layout (D) Cellular layout
Which of the following steps is the first step in production scheduling?
(A) Sequencing (B) Loading
(C) Expediting (D) Classifying
A defense equipment manufacturing company uses bolts at a constant rate of
10000 kg per year. The bolt cost ` 80 per kg and the company estimates that it
costs ` 400 to place an order and the carrying cost of inventory is 10 percent per
year. How frequently should orders for bolts be placed?
(A) 5 (B) 10
(C) 15 (D) 20
The number of allocated cells in the optimal solution table of a transportation
problem having m origins and n destinations is
m+n–1
m + n –1 or more
m + n –1 or less
m+n
136
The co-efficient of artificial variable in a Maximization problem of LP is
M
–M
0
1
June 2014
If the EOQ for an item of inventory in a firm is 1000 units, the estimated
demand for the term next year gets doubled, what shall be the revised EOQ next
year, all other relevant costs remaining unchanged?
(A) 1000 (B) 1414
(C) 2000 (D) None of the above
From the following two statements, choose the correct answer:
Statement I: A person can have one utility curve for one situation and a quite
different one for the next situation.
Statement II: Business executive with a linear utility curve can effectively use
the expected monetary value as their decision criterion.
Codes:
Statement I is true, but II is false.
Statement I is false, but II is true.
Both the Statements I and II are true.
Both the statements I and II are false.
Which of the following is not included in the Five-p model of transformation
organization used in the Production and Operations
Management?
(A) People (B) Plant
(C) Production (D) Programmes
Demand forecasting through “Survey of Buyer‟s Intentions” is not suited for
which type of products?
(A) ‗Convenience goods‘ (B) Industrial products
137
(C) New products (D) Consumer durables
The names of certain reputed authors and their works are listed in the following
lists. Match the names and their works in the correct order:
ElwoodS. i. A BehavioralBuffa and Theory of the RakeshK.FirmSarin
RichardM. ii. Introduction to Cyert and operations James EMarch
research
Martin K. iii.Production and Starr and Operations D.W. Miller
Management
J.M. Juran iv. Quality Control Handbook
Hillier and v. Inventory Leiberman Control: Theory and Practice
Codes:-
a b c d e
i ii iii iv v
ii iii iv v i
iii iv i ii v
iii i v iv ii
Dec 2013
Consider the names of organizations/persons listed in List – I and
their role/functions given in List – II:
a. Bureau of i. Measurement of i. Measurement of
service quality
Indian Service quality Standards (BIS)
B.ZeithmalParasuramanand Berry ii. Measurement of quality of
educational service
ISO iii. Standardization and quality
control of manufactured goods
National Assessment and Accreditation Council iv. Quality marketing
and Certification of standards
138
Indicate the correct matching:-
Codes:-
a b c d
i ii iii iv
ii iii iv i
iv iiiii i
iii iv i ii
In Linear Programming, which one of the following cases is not a type of
sensitivity analysis?
(A) Model building (B) Objective-function ranging
(C) Pricing out (D) Right hand-side ranging
The upper control limit for an X chart, with n = 9, Mean = 26.7, R = 5.3 and d2
= 2.970, is
(A) 24.9 (B) 26.11 (C) 27.29 (D) 28.48
The additional cost of shortening an activity by one unit of time is
(A) Cost slope (B) Crash cost (C) Crash time (D) Least cost
Which method is least suited for forecasting the demand of a new product?
(A) Survey of Buyers‘ Intentions (B) Composite Opinions of Sales
Force
(C) Test Marketing(D) Time-Series Analysis
Sept 2013
Which one of the following is not a qualitative forecasting method?
Educated guess
Executive Committee Consensus
Delphi method
Linear regression method
139
Statement I: Mean (X) chart do not give the desired result about process
variability.
Statement II: Range (R) chart monitors process variability.
Statement I is correct, but Statement II is false.
Statement II is correct, but Statement I is false.
Both Statements I and II are correct.
Both Statements I and II are false.
Which one is not a part of control charts for attributes?
(A) P-chart (B) f-chart
(C) np-chart (D) c-chart
There are different phases in a Operations Research Project. They are
(i) Research phase (ii) Action phase (iii) Judgment phase
The correct sequence of these phases is
(A) (i), (ii), (iii)
(B) (iii), (i), (ii)
(ii), (iii), (i)
(iii), (ii), (i)
The Graphical method can be used to solve
A Linear Programming Problem (LPP) with all integer data.
A LPP with two decision variables.
Any LPP.
A transportation problem with two origins and two destinations.
June 2013
Work measurement refers to
The length of time it takes to complete a work task assigned to a specific job.
Improving work methods.
140
Arrangement of machines according to operations.
Planning the work and working for the plans.
Facility planning includes
Determination of production capacity
Determination of production facilities location
Determination of the layout
All the above
For fraction or proportion of defects 1. R-chart
For number of defects 2. C-chart
For number of defects for unit3. nP-Chart
For monitoring process variability 4. P-Chart
a b c d
(A) 1 2 3 4
(B) 4 3 2 1
(C) 2 1 4 3
(D) 3 4 1 2
Statement – I: One of the major causes of the industry for larger capacity is the
argument that large facilities facilitate greater economies of scale. But the major
concern for building big capacity is that funds will be tied up or scarcity of
funds.
Statement – II: A viable alternative to larger capacity production facilities is to
develop sub-contractor and supplier networks.
Both statements I & II are correct.
Both statements I & II are false.
Statement I is correct and II is false.
Statement II is correct and I is false.
Dec 2012
141
Which one of the following is not the function of Production
Management?
Production, Planning and Control
Procurement of Raw Materials
Market Intelligence and Survey
Plant Location and Layout
Time study refers to
Developing a standard time to do a particular task
Improving work methods
Value analysis
Value engineering
Acceptance Quality level is
Maximum number of defectives that the consumers will accept
Fraction defective(s) that the consumer considers acceptable
Fraction defective(s) that the producer considers acceptable
Maximum number of defectives that the producer will allow
In a transportation problem involving 10 origins and 5 destinations, the number
of constraints representing origin capacity and destination requirements is equal
to
(A) 50 (B) 49
(C) 15 (D) 14
The critical path of a network is
For which earliest start time and latest start time are same
The shortest time path through a network
For which earliest finish time and latest finish time are same
The longest time path through a network
June 2012
Which of the following is not the type of Plant Layout?
142
Product Layout
Process Layout
Fixed Position Layout
Residential Layout
Which of the following factor is considered in the selection of a plant location?
Source of Raw-materials
Availability of water
Marketing facilities
All the above
Work measurement refers to
The length of time it takes to complete a work task assigned to a specific job
Improving work methods
Arrangement of machines according to sequence of operations
Planning the work and working the plans
The Graphical method can be used to solve
A linear programming problem with all integer data base.
A linear programming problem with two decision variables.
Any linear programming problem.
A transportation problem with two origins and two destinations.
Dec 2011
When work stations are arranged according to the progressive steps by which
the product is produced, it is called a
Functional layout
Process layout
Job shop layout
Product layout
143
If for a demand process suited to a = 0.1 we try to fit a forecasting procedure
with a = 0.3, the forecast will
Show large swings up and down
Follow the demand better, consequently reducing forecast errors
Show a pronounced behavior
None of the above
CRAFT considers exchanges of locations for those departments which

Have the same area
Have a common border
Either (A) or (B)
Have same costs per unit of distance
If the ordering costs are over-estimated by 50 percent and carrying costs are
under-estimated by 50 percent, the total annual cost will exceed the optimum
cost by
73.2 per cent
50 per cent
0 per cent
150 per cent
PERT/CPM network analysis can be used for
Project appraisal
Project implementation
Project monitoring and control
All of the above
June 2011
Which of the following departments is not directly affected by the facilities
location decision?
144
Production / operations
Marketing
Personnel
Finance
Ship building and construction of dams and bridges are typical examples of
Fixed position layout
Functional layout
Product layout
Project type layout
If unit item cost = Rs. 10, monthly carrying charge = 3 per cent, monthly
demand = 100 units and ordering cost = Rs. 20 per order, the EOQ is:
(A) 11.45
(B) 400
(C) 115.4
(D) 33.3
In managing a project, a network is better suited than Gantt chart because
It can be updated more easily
It clearly brings out the interdependencies between the different activities
Both (A) and (B)
None of the above
The aggregate production plan spans
Short time horizon
Intermediate time horizon
Long time horizon
None of the above
145
Dec 2010
The primary role of a production manager is
To meet the production target and delivery schedule
To produce goods/services of right quality
To produce goods/services by right quantity at the predetermined time
All of the above
Fixed Position Layout is used when
The operation requires heavy tools and equipment.
The operation requires only hand tools and simple equipment.
The continuity of production process is to be maintained.
None of the above
Critical Path Method (CPM) is concerned with estimation of
Optimistic time
Production lead time
Pessimistic time
None of the above
June 2010
Which of the following is not an element of production management?
(A) Plant (B) Profit
(C) Process (D) People
Production Management Tactical Planning decisions include
Establishing parameters for measuring operational efficiency and
productivity.
Establishing quality specifications and test details.
Determining starting and finishing time of each job in the work stations.
None of the above
Work study refers to
146
Analysis of work into smaller parts followed by re-arrangement of these parts to
give the same effectiveness at lesser cost.
Analytical investigation of the methods involved in the work.
Developing new methods to give work effectiveness.
All of the above
Economic lot size is known as
The lot size for which the total cost per time period is minimum.
The ordering cost and carrying cost are minimum.
The lot size that strikes a balance between ordering cost and carrying cost.
The quantity to be ordered each time is fixed.
Objective of Value Engineering is
Reduce cost without reducing the quality.
Increase value without increasing the cost.
Reduce cost by reducing the quality.
None of the above
Dec 2009
Tactical production planning decision includes
(A) Layout planning (B) Machine loading
(C) Production process (D) Plant location
Which of the following is not to be considered for plant location decision?
(A) Availability of labor (B) Availability of power
(C) Availability of raw material (D) Brand image
Moving average forecasting is used to

Establish the trend of the past
Forecast the current demand
147
Forecast market competition
Forecast Quasi demand
Work measurement is essential for
Labor utilization and efficiency
Determining the delivery dates
Introducing financial incentive schemes
All of the above
EOQ refers to the quantity for which
Fixed cost is equal to variable cost
Carrying cost is equal to ordering cost
Average cost is equal to marginal revenue
Total contribution minus cost of goods
June 2009
Strategic production planning decisions include:
Quality development(C) Manpower planning
Make or Buy decision (D)Layout planning
Which one of the following is not the type of Plant Layout?
Process Layout (C) Fixed position Layout
Product Layout (D) Selection Layout
Production control is concerned with:
Establishment of Quality Standard norms
Execution of production plan
Expediting the production process
Product Quality control
Critical Path Method network analyses is done with the objective of:
Determining the completion time for the project
148
Determining the product quality
Determining the production cost
Determining the pay-back period
Q systems of inventory control provides for:
Ordering the inventory when it normally equals to EOQ
Ordering the inventory depending on the stock level on hand
Optimization of inventory costs
None of the above
149
Unit VII:-Advance Statistics and MIS
Probability Theory Probability Distribution- Binomial, Poisson, Normal and
Exponential, Correlation and Regression Analysis, Sampling Theory, Sampling
Distributions, Tests of Hypothesis, Large and Small Samples, t, z , F, Chi-
square Tests, Use of Computers in Managerial Applications, Technology Issues
and Data Processing in Organizations, Information Systems, MIS and Decision-
making, System Analysis and Decision, Trends in Information Technology,
Internet and Internet based Applications, Design.
Nov 2017
Which one of the following statements is false?
Sample space refers to the collection of all favorable outcomes of an
experiment.
Collectively exhaustive events are those whose union is sample space.
All the outcomes of an experiment are known as sample space.
Two events are said to be independent if the happening of one does not affect
the probability of happening of the other.
Which one of the following is a false statement?
A binomial distribution involves infinite number of trials
The mean and the variance of a Poisson distribution are equal
The standard normal distribution has μ=0 and s=1
The standard deviation of an exponential distribution is equal to its mean
In the context of coefficient of correlation (r), match the items of List - I with
the items of List - II and select the code of correct matching:
1- r²
√n i. Probable error of r
b. (0.6745)1- r²
√n ii. Coefficient of determination
r² iii. Standard error of r

Code:-
150
a b c
ii i iii
iii ii i
ii iii i
i ii iii
Which one of the following statements is true?
If one of the regression coefficients is greater than one, the other must also be
greater than one.
The product of the two regression coefficients is always more than one.
Correlation coefficient is the arithmetic mean of the two regression coefficients.
The signs of the two regression coefficients are always the same.
In the absence of which of the following, SPSS can be used as an alternate?
MS Word
MS Excel
MS Access
MS Datapro
Jan 2017
Which one of the following expressions relates to an event which represents the
occurrence of either A or B or both?
(1) A ∪ B (2) A ∩ B
(3) ⁻ ⁻ A ∩ –⁻ ⁻ B (4) (A ∩ –⁻ ⁻ B) ∪ (⁻ ⁻ A ∩ B)
A Bernoulli process has all but which one of the following properties?
Each trial has two possible outcomes.
The probability of a success on any trial remains fixed over time.
The probability of success on any trial is equal to the probability of
failure.
Trials are statistically independent.
151
Statement – I: The product of coefficient of correlation, standard deviation of
variable „X‟ and Standard deviation of variable „Y‟ gives the measure of
covariance between X and Y variables.
Statement – II: The product of coefficient of correlation between X and Y
variables and the ratio between standard deviation of X variable to standard
deviation of Y variable measures the slope of the regression line of X on Y
variable.
Codes:
Statement – I: Both the probable error and standard error of the coefficient of
correlation are different.
Statement – II: When a sampling distribution of mean is prepared by taking
small sized samples from a normally distributed population, the distribution
takes the shape of normal distribution.
Codes:
Which one of the following is not the major characteristic of internet?
(1) Open (2) Expensive
(3) Global (4) Untrusted
July 2016
Which of the following sentences are true?
The classical approach to probability theory requires that the total number of
possible outcomes be known or calculated and that each of the outcomes be
equally likely.
152
A marginal probability is also known as unconditional probability.
For three independent events, the joint probability of the three events, P(ABC)=
P(A) × P(B/A) × P(C/AB)
Two events are mutually exclusive, exhaustive and equally likely, the
probability of either event A or B or both occurring P(A or B) = P(A) + P(B)
Codes:
(i), (ii), (iii) and (iv) are true.
(iii) and (iv) are true.
(i), (ii) and (iv) are true.
(i) and (iii) are true.
Match the items of List – I with the items of List – II and indicate the code of
correct matching in connection with probability distributions:
(Mean and Standard Deviations) (Probability Distribution)
np, √npq i. Normal Distribution
λ,√λ ii. Binomial Distribution
0, 1 iii. Poisson Distribution

Codes:-
a b c
i ii iii
iii i ii
iii ii i
i iii ii
A researcher wants to test the significance of the differences of the average
performance of more than two sample groups drawn from a normally
distributed population, which one of the following hypothesis- testing tests is
appropriate?
(1) Chi-square test (2) F-test
(3) z-test (4) t-test
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Match the items of List – I with the items of List – II and indicate the code of
their correct matching with regard to correlation and regression analysis:
γxyσy
σxi. Covariance between X and Y
b. Σ(X – –X) (Y – –Y)
n ⋅σx⋅σyii. Standard error of coefficient of correlation
c. Σ(X – –X) (Y – –Y)
n iii. Regression coefficient of Y on X
variable.
1 – γ2
√n iv. Karl Pearson‘s coefficient of correlation
Codes:-
a b c d
i ii iii iv
ii i iv iii
iii ii iv i
iii iv iii
Match the items of List – I with List – II:
Stock files that are placed in warehouse as a record i. Daily report
Process of managing goods in most sensible way ii. Intranet
Management information system iii. Master file
Log-in allowed to only internal people iv. Stock control
Codes:-
abcd
iii iv iii
iv iii ii i
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iii i iv ii
i ii iii iv
Dec 2015
Match the items of List – I with those of List – II and choose the correct code:
List – I
The probability of two events occurring together or in succession
The probability of occurring one event given that another event has occurred
The probability of occurring a single event
The probability revised in the light of additional information List –
II
Marginal probability
Posterior probability
Subjective probability
Joint probability
Conditional probability
Code:-
A b c d
iv v i iii
v iv ii iii
v iv iii i
iv v i ii
Consider the following statements relating to correlation and regression
analysis:
Statement I: Correlation is independent of change of scale, but not of origin
Statement II: Correlation denotes co-variability between the variables Statement
III: Regression is a relative measure of relationship between variables Statement
IV: Regression is independent of change of origin but not of scale
155
Choose the correct option:
Statements I, II and IV are correct
Statements II, III and IV are correct
Statements II and III are correct
Statements II and IV are correct
Which of the following is not a technology driver for an information system?
(1) Knowledge asset management (2) Enterprise applications
(3) Object technologies (4) Networks and internet
NegandhiEstafen‟ is recognized as a good model for the analysis of:
Organizational effectiveness
Management effectiveness
Organizational growth
Organization behavior
A self-contained internet program designed to be used in a specific environment
is:
(1) Active – X (3) Applet
(2) Application programme interface (4) Artificial intelligence
June 2015
If your score in an exam was 80, with a mean of 60, what would be the
standardized score for this exam if the standard deviation is 15?
(1) 1.33
(2) 1.25
(3) 1.52
(4) 1.72
Spurious relationship between two variables refers to:
(1) Very poor relationship between the variables.
(2) Statistically insignificant relationship between the variables.
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(3) Relationship happens only due to third variable which is common to both
the variables.
(4) The relationship which is impossible to measure.
In a medical test, where the null hypothesis is: „The patient does not have the
disease‟ and the alternative hypothesis is: „ the patient has the disease‟.
Suppose a patient has a disease and needs treatment. In the hypothesis testing
process, which of the following errors is more serious than the others?
(1) Type - I error (3) Both Type - I and Type - II error
(2) Type - II error (4) r - error
Decision support system does not use:
(1) Analytical models
(2) Specialized databases
(3) File server
(4) Computer - based modeling process
Give the correct order of the stages in System Development.
(1) Testing---->Programming---->Systems----->Design---->Systems---->
Analysis---->Conversion---->Production and Maintenance
(2) Programming---->Testing---->Systems Analysis---->Systems Design ----
>Conversion ---->Maintenance
(3) Systems Analysis---->Systems Design---->Programming---->Testing ----
>Conversion---->Production and Maintenance
(4) Productionand Maintenance---->Testing---->Conversion-----
>Programming ---->Systems Design---->Systems Analysis
Dec 2014
If p = 0.6 for a particular Bernoulli process, the calculation ( 8! ) (0.6)5 (0.4)3
indicates 5!*3!
the probability of happening of
(A) 5 or more successes in eight trials
(B) 3 or more successes in eight trials
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(C) Exactly 5 successes in eight trials
(D) Exactly 3 successes in eight trials
Chebyshev‟s theorem provides that at least 89% of the values will lie within
± 3 standard deviations from the mean for
(A) Bell-shaped distributions
(B) Positively-skewed distributions
(C) Negatively-skewed distributions
(D) All distributions
How many degrees of freedom should be used to apply chi-square test statistic
on a contingency table, having 5 rows and 4 columns?
(A) 20
(B) 12
(C) 7
(D) 9
The and its alternative provide the ability to serve dynamic
content to browsers.
(A) Common Gateway Interface
(B) Cryptography
(C) General Pocket Radio Service
(D) Cellular Digital Pocket Data
Which is the most suitable domain extension for an Indian NGO to do e
business?
(A) .gov
(B) .com
(C) .org
(D) .us
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June 2014
What is the probability of a value, chosen from a population, is less than its
median?
(A) 1.0 (B) 0.75
(C) 0.50 (D) 0.25
If in a given Binomial distribution with „n‟ fixed and P < 0.5, then
(A) The Poisson distribution will provide a good approximation
(B) The Binomial distribution will be skewed to the left
(C) The Binomial distribution will be skewed to the right
(D) The Binomial distribution will be symmetric
What separates the physical aspects of data storage from the logical aspects of
data representation?
(A) Schema (B) Relationships
(C) Constraints (D) Data
The components of E-business model are
i. Web Server
ii. Web Master
iii. Internet
iv. Web Administrator
Codes:
(A) i, ii, iii & iv
(B) i, ii & iii
(C) i & iii only
(D) iii only
The simple probability of the occurrence of an event is called the
(A) Bayesian probability
(B) Conditional probability
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(C) Joint probability
(D) Marginal probability
Dec 2013
In a hypothesis test, α = 0.05 and β = 0.10, the power of the test is
(A) 0.10 (B) 0.90
(C) 0.95 (D) 0.15
When performing a Chi-square hypothesis test, what happens when expected
frequencies in several cells are too small?
(A) Value of χ2 will be overestimated.
(B) The null hypothesis will be more likely to be rejected than it should be.
(C) The degrees of freedom are greatly reduced.
(D) (A) and (B), but not (C).
Under which situation, the method of „experimentation, modeling and
sensitivity analysis‟ is used to determine the information requirements of the
management?
(A) Total Uncertainty
(B) High Risk
(C) Low Risk
(D) Certainty
The technique(s) that can be used in data mining is/are:
(A) Non-linear Regression Methods
(B) Decision tree
(C) Neural networks
(D) All of the above
A Binomial distribution may be approximated by a Poisson
distribution, if:
i. „n‟ is large and „p‟ is large.
ii. „n‟ is small and „p‟ is large.
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iii. „n‟ is small and „p‟ is small.
iv. „n‟ is large and „p‟ is small.
Codes:
(A) i, ii and iii
(B) ii only
(C) iii and iv only
(D) iv only
Sept 2013
A vendor can make a profit of Rs3,000 with a probability of 0.4 or make a loss
of Rs1,000 with a probability of 0.6. What is his expected profit?
(A) Rs600 (B) Rs800
(C) Rs1,000 (D) Rs500
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
Match the items given in List-I with most appropriate options given in 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
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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)
Identify the window not associated with SPSS.
(A) Editor
(B) Syntax
(C) Output
(D) Format Cells
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)
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June 2013
In a symmetrical distribution
(A) Mean, Median and Mode values are identical.
(B) Mean, Median and Standard Deviation are equal.
(C) Mean, Median and Correlation are equal.
(D) None of the above
From the following, identify the test which can be used both as parametric and
non-parametric?
(A) ‗t‘ test
(B) ‗F‘ test
(C) ‗Chi-square‘ test
(D) ‗Wilcoxon‘ test
Arrange the following in ascending order in the testing of hypothesis:
(i) Determining the level of significance
(ii) Deciding the Statistical Test and computation
(iii) Setting the hypothesis
(iv) Decision
Codes:
(A) (iii), (ii), (i) and (iv)
(B) (iii), (i), (ii) and (iv)
(C) (i), (iii), (ii) and (iv)
(D) (i), (iii), (iv) and (ii)
Y = a + bX refers to
(A) Y = independent variable, a = slope of the line, b = Y intercept and X =
dependent variable
(B) Y = dependent variable, a = slope of the line, b = Y intercept and X =
independent variable
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(C) Y = independent variable, a = dependent variable, b = Y intercept and X =
slope of the line
(D) Y = dependent variable, a = Y intercept, b = slope of the line and X =
Select the most appropriate option from Column B against the items in Column
A:
Column A Column B
a. Computer used to operate large
corporate systemsand databases1.Componentsofinformationsystem
b. Data flow diagram 2. RAID
c. Equipment, procedures and end user 3. Structured design
Codes:
abc
(A) 3 2 1
(B) 2 3 1
(C) 1 2 3
(D) 2 1 3
Dec 2012
If a person buys one ticket of a State lottery, then the probability that he wins a
price is 0.11. If a person buys one ticket each month for five months, what is the
probability that he will win least one price?
(A) 0.55
(B) 0.50
(C) 0.44
(D) 0.56
The standard error of the mean of a random sample of size two or more.
(A) Always exceeds the population standard deviation.
(B) Either exceeds or equals the population standard deviation.
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(C) Is always lower than the population standard deviation
(D) Is always equal to the population standard deviation.
A store manager is trying to explore the relationship between percentage fat
content (Y) and price (X) of various dairy products. He finds that the coefficient
of determination is 0.4624 and the estimated regression line is Y = 0.5 – 0.02 X.
The coefficient of correlation would be
(A) 0.68
(B) – 0.68
(C) – 0.02
(D) 0.4624
Which of the following statement on testing of hypothesis is always true?
(A) When the null hypothesis is rejected at 5%, it is always rejected at 1% level
of significance.
(B) When the null hypothesis is rejected at 1%, it is also rejected at 5% level of
significance.
(C) When the null hypothesis is not rejected at 1%, it is rejected at5% level of
significance.
(D) No definite assertion can be made.
Which of the following devices would be considered a typical sequential access
medium?
(A) Magnetic Hard Disk
(B) Magnetic Floppy Disk
(C) Magnetic Tape
(D) CD ROM
June 2012
A Binomial distribution is characterized as β (16,0.5) i.e. sample size is 16 and
the probability of success is 0.5. The mean and variance of this distribution will
be respectively
(A) 8, 4
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(B) 8, 8
(C) 4, 8
(D) 4, 4
Two variables are said to be perfectly negatively correlated if
(A) Covariance between them is positive
(B) Coefficient of correlation between them is –1
(C) Covariance between them is negative
Which type of sampling is appropriate when the population consists of well-
defined groups such that the elements within each group are homogeneous and
between each group they are heterogeneous?
(A) Cluster Sampling
(B) Simple Random Sampling
(C) Stratified Sampling
(D) Judgment Sampling
Which of the following is not a type of internet connection?
(A) ISDN
(B) Dial-up
(C) Leased-Line
(D) ISP
(I) Poisson distribution has the property that 1. Its mean is greater than
Variance
(II) Normal distribution is a 2. Symmetric distribution
(III) Chi-square distribution is 3. Positively skewed
distribution
(IV) Binomial distribution has the property that 4. Its mean and variance
are equal.
166
Codes:
(I) (II) (III) (IV)
(A) 4 2 1 3
(B) 4 2 3 1
(C) 1 2 3 4
(D) 2 4 3 1
Dec 2011
If P (A) =2 , P(B) = 1 , P(A/B) = 1then the value of P(B/A) is 3
3 3
(A)1
2
(B)1
3
(C)1
4
(D)1
5
The level of significance is the probability of committing the
(A) Type I error
(B) Type II error
(C) Standard error
(D) Probable error
The two lines of regression are 3x + 2y = 26 and 6x + y = 31 then the mean of x
is
(A) 3 (B) 4
(C) 6 (D) 7
167
For which distribution(s) Mean and Median are equal?
(i) Binomial Distribution;
(ii) Poisson Distribution;
(iii) Exponential Distribution; or
(iv) Normal Distribution
Codes:
(A) (i)
(B) (ii)
(C) (i) & (iii)
(D) (ii) & (iv)
The type of transmission channel which can transmit data in one direction only
is known as
(A) Simplex
(B) Half Duplex
(C) Full Duplex
(D) Half Simplex
June 2011
The probability that a contractor will get a plumbing contract is 2/ 3 and that he
will get an electric contract is 4/ 9. If the probability of his getting at least one of
the two contracts is 4/5, then the probability that he will get both contracts is
(A) 10/45
(B) 8/27
(C) 14/45
(D) 26/45
If a random variable X follows Poisson distribution such that P(X = 1) = P(X =
2), then the mean of the distribution is
168
(A) 1 (B) 2
(C) 3 (D) 4
The value of R1.23 lies between
(A) –1 and +1
(B) –1 and 0.0
(C) 0.0 and +1
(D) – 0.5 and + 0.5
A source programme is
(A) a programme written in machine language
(B) a programme to be translated into machine language
(C) the machine language translation of a programme written in high-level
language
(D) none of the above
Processing data in groups collected over periods of time is known as
(A) Time - sharing
(B) Batch processing
(C) Real – time processing
(D) Multi – processing
Dec 2010
In a normal distribution, mean (m)± 3s (3 standard deviation) limitscontains
approximately
(A) 99.73% of the observations
(B) 99.27% of the observations
(C) 96% of the observations
(D) 95% of the observations
Firms choose a focus strategy to serve the needs of which of the following?
(A) Buyers group
169
(B) Different-segment of a product line
(C) Different geographical market
Which of the following is not the component of work study?
(A) Work measurement
(B) Case study
(C) Time study
(D) Motion study
Half percent of the letters mailed in a city have incorrect addresses. Out of 200
such letters mailed in a day, the probability of finding at most 3 incorrect
addresses is
(A) 3e / 8
(B) 8 / 3 e-1
(C) 1 / 6 e–1
(D) 5 / 2 e–1
If X is a random variable normally distributed with mean and variance, then the
mean deviation about mean is given by
(A) 1
√2π
(B) √2
π
(C) σ
√2π
(D) √2σ
The level of significance is the probability of committing
(A) type I error
(B) type II error
170
(C) standard error
(D) probable error
Which of the following tests is used to test a hypothesis about the mean of a
univariate normal distribution with unknown variance?
(A) Normal test
(B) Student‘s test
(C) Paired t-test
(D) Chi-square test
Mean and variance of Binomial Distribution are
(A) m and σ2 (B) m and nq
(C) m and np(D) np and npq
(Where the terms have usual statistical meaning)
June 2010
If the independent variates xi (i = 1, 2, …..n) are normally distributed about a
common mean,a, with a common variance, s2,their mean is also
normallydistributed about a, but with avariance
(A) nσ2
(B) σ2n
(C) (σ2)n
(D) σn/2
The weak law of large numbers is another version of
(A) Convergence in probability
(B) Random number generation
(C) Financial probability law
(D) Poisson probability law
The basic assumptions underlying the t-test for the difference of two
sample means are that the parent populations are and
population variances are
171
(A) of any shape; equal and known
(B) normal; equal and known
(C) normal; equal but unknown
(D) normal; unequal but known
LAN stands for
(A) Large Area Network
(B) Local Area Network
(C) Long Accurate Network
(D) Lay Access Network
If X is normally distributed with mean 30 and s.d. 5 and φ (x) denotes:- 1 ʃ e -
1/2 t² dt then P(26<X<40) and P (X > 45) given by:-
√2π
(a) Φ (.8) + φ (.2) and φ(3) -1/2
(b) Φ (2) - φ (.8) and 1/2-φ(3)
(c) Φ (2) - φ (.8) and 1/2 +φ(3)
(d) Φ (2) + φ (.8) and 1/2 φ(3)
Dec 2009
A company is producing steel rods. Assuming that the length of steel rods
follows normal distribution with mean 10 inches & variance equal to
0.04 sq. inches. The standard error of mean, when a random sample of 16 is
taken, will be
(A) 4/10 (B) 2/20
(C) 2/40 (D) None of these
Judgment sampling to select the sampling units from population is termed

as
(A) Probability sampling (B) Non-probability sampling
(C) Systematic sampling (D) none of these
Wide area network is
172
(A) Network of computers spread over a small geographical area.
(B) Network of computers spread over a large geographical area.
(C) Network of computers in a room.
(D) None of these.
Correlation coefficient between two variables X & Y is calculated as
0.63. If the measurements of X & Y are changed to U= X- 10 & V= Y+5 the
new value of correlation coefficient will be 5 10
(A) 0.063 (B) 0.315
(C) 0.63 (D) None of these
A person appears in an interview for a job in the two companies say X and Y.
The chances of selection in company X is 0.7 and chances of selection in Y is
0.6. The probability of his selection in either of the two companies will be
(A) 0.42 (B) 0.88
(C) 0.50 (D) None of these
June 2009
In case of Binomial distribution, the mean is:
(A) Always greater than variance
(B) Always equal to variance
(C) Always less than variance
(D) None of these
Car hire firm has two cars which it hires out daily. The demand for car is
distributed as Poisson with mean 2. If the value of e2250.1353, the number of
days out of 100 days on which neither of the car is used are:
(A) Approximately 14 (C) Approximately 32
(B) Approximately 22 (D) None of these
A committee of four has to be formed from among 3 Economists, 2 Managers, 4
Doctors and one Statistician. The Probability that all 4 professions are
represented on the committee will be:
173
(A) 14/35
(B) 10/35
(C) 4/35
(D) 24/35
Correlation Coefficient is equal to:
(A) Arithmetic mean of both regression coefficients
(B) Geometric mean of both regression coefficients
(C) Difference of two regression coefficients
(D) None of these
When Null hypothesis (Ho) is true and test rejects it, it is called:
(A) Type - I error (B) Type-II error
(C) Level of significance (D) none of these
174
Unit VIII:-Corporate Strategy
Concept of Corporate Strategy Components of Strategy Formulation, Ansoff‘s
Growth Vector, BCG Model, Porter‘s Generic Strategies, Competitor Analysis,
Strategic Dimensions and Group Mapping, Industry Analysis, Strategies in
Industry Evolution, Fragmentation, Maturity and Decline, Competitive Strategy
and Corporate Strategy , Trans nationalization of Word Economy, Managing
Cultural Diversity, Diversity Global Entry Strategies, Globalization of Financial
System and Services, Managing International Business, Competitive
Advantage of Nations, RTF and WTO.
Nov 2017
1. Match the items of List-I and List-II and select the code of correct
matching:-
List- I List-II
(a) Merger of Vodafone and Idea (i) Business Strategy
(b)Launch of Apple iPhone 7plus (ii) Operational Strategy
(c) Manufacturing Samsung mobile
Handsets in India (iii) Corporate Strategy
Code:
a b c
1. iii i ii
2. iii ii i
3. ii iii i
4. ii i iii
2. Which among the following are 5ps of strategy as identified by Mintzberg?
a. Plan
b. Problem
c. Pattern
d. Position
e. Ploy
f. Perspective
175
Code:-
1. a, b, c, d and e
2. a, b, d, e and f
3. b, c, d, e and f
4. a, c, d, e and f
3. Assertion (A): A firm‟s relative position within its industry determines
whether the firm‟s overall profitability is above or below the industry average.
Reasoning (R): The fundamental basis of average profitability in the long run is
sustainable competitive advantage
Code:-
1. A and R both are correct and R is the right explanation of A
2. A and R both are correct but R is not the right explanation of A
3. A is correct but R is incorrect
4. R is correct but A is incorrect
4. Statement I:- A “Star” is the market leader in a high-growth market; and it
has sufficient cash to support other businesses.
Statement II:- “Dogs” have weak market share in high-growth market.
Code:-
1. Statement I is correct but II is incorrect.
2. Statement is correct but I is incorrect.
3. Both the Statements I and II are correct
4. Both the Statements I and II are incorrect
5. Which among the following is not a generic strategy?
1. Unity Strategy
2. Cost Leadership Strategy
3. Differentiation Strategy
4. Niche Strategy
Jan 2017
6. Assertion (A): Private foreign capital lends to flow to the high profit areas
rather than to the priority sectors.
176
Reasoning (R): One of the important limitations to utilize the foreign capital is
the absorptive capacity of the recipient country.
Codes:
(1) (A) and (R) both are correct and (R) is the correct explanation of (A).
(2) (A) and (R) both are correct but (R) is not the correct explanation of (A).
(3) (A) is correct whereas (R) is incorrect.
(4) (R) is correct whereas (A) is incorrect.
7. Consider the following statements and identify the correct code of true
statements:
(a) When an organization‟s survival is threatened and it is not competing
effectively, retrenchment strategies are often needed.
(b) Turnaround strategy is used when an organization is performing well but
has not yet reached a critical stage.
(c) Divestment strategy involves selling the business or setting it up as a
separate corporation.
(d) Liquidation strategy involves closure of business which is no longer
profitable.
Codes:
(1) Only (a), (b) and (c) are correct.
(2) Only (b), (c) and (d) are correct.
(3) Only (a), (c) and (d) are correct.
(4) Only (a) and (d) are correct.
8. Statement – I: Most businesses start off as “Question Marks”, in that they
enter a high growth market in which there is already a market leader.
Statement – II: A “Star” is the market leader in a high-growth market, but it
does not necessarily provide much cash.
(1) Statement – I is correct but Statement – II is incorrect.
(2) Statement – II is correct but Statement – I is incorrect.
(3) Both the Statements are incorrect.
(4) Both the Statements are correct.
177
9. Match the items of List – I with List – II and identify the code of correct
matching:
a. Consistent actions one time i. A perspective
b. It reflects the decision of the firm to offer
particular products or services in particular markets. ii. A ploy
c. A manoeuvre intended to outwit competitor iii. A position
d. A view of what the organization is to become iv. A pattern
Codes:
a b c d
(1) iv iii i ii
(2) iv i ii iii
(3) iv iii ii i
(4) iii iv ii i
10. Apple computers uses a differentiation competitive strategy that
emphasizes innovative product with creative design. This is an example of
(1) Functional strategy (2) Business strategy
(3) Operating strategy (4) Product strategy
July 2016
11. The highly competitive industries, particularly in the early stage of product
life cycle,follow which one of the following strategies?
(1) Functional area support strategy (2) Expansion strategy
(3) Diversification strategy (4) Downsizing strategy
12. When highly interrelated variables exist or when it is necessary to choose
from severalplausible alternatives, which one of the following should the
strategist integrate indecision making?
(1) Analysis of facts (2) Intuition
(3) Competitor‘s strategy (4) Global perspective
178
13. Assertion (A): In an industrial structure, the acquisition of an existing firm
in theindustry might be a better move than starting-up a new venture.
Reasoning (R): There is evidence that internal development might be preferable
toacquisition because of differences between cultures and shared valued.
Codes:
(1) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(2) Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(3) (A) is correct, but (R) is not correct.
(4) (R) is correct, but (A) is not correct.
14. Consider the following statements with reference to Porter‟s five forces
model of competitive analysis:
(a) As rivalry among competing firm intensifies, generally industry profits
decline or infew cases, industry becomes inherently unattractive.
(b) Whenever new firms are allowed to enter a particular industry, the intensity
ofcompetitiveness among firms becomes haphazard.
(c) Generally competitive pressures arising from the substitute products
decrease as therelative price of substitute products decline.
(d) Bargaining power of suppliers affects the intensity of competition.
Codes:
(1) Statements (a) and (b) are false, others are true.
(2) Statements (a) and (d) are true, others are false.
(3) Statements (b), (c) and (d) are true, but (a) is false.
(4) All the statements are true.
15. Match the items given in List – I with the items of List – II:
a. Vision i. General statements of the company‟s intent.
b. Mission ii. Desired future position of the company
c. Goals iii. Operationalizing of mission
179
d. Objectives iv. Vivid idealized description of a desired outcome
Codes:
abcd
(1) iv i ii iii
(2) i ii iii iv
(3) ii iii i iv
(4) iii iv ii i
Dec 2015
16. A company manages multiple strategies for it‟s multiple markets and
multiple products through which one of the following?
(1) Strategic Planners(3) Strategic Windows
(2) Strategic Business Units (4) Strategic Technology
17. Match the items of List – I with List – II:
(a) Technical Innovation Strategy (i) foreign producer gives a straight copy
(b) Product Adaptation Strategy(ii) Perceived and demonstrable superior

products
(c) Availability and Security Strategy(iii) Modifications to existing products
(d) Total Adaptation and Conformity Strategy(iv) Overcome transport risk by

countering perceived risks
Code:
abc d
1. iii ii i iv
2. ii iii iv I
3. i ii iii iv
4. ii iii i iv
18. Only diversified company with a balanced portfolio can use its strengths to
truly capitalize on its growth opportunities. Hence the balanced portfolio
contains:
(1) Stars whose high share and high growth assure the future
180
(2) Cash cows that supply funds for their future growth
(3) Question marks to be converted into stars with the added funds
(4) All of the above
19. Porter‟s Generic Strategies identified three basic categories of
strategies to include which one of the following combinations?
(1) High Cost Producer, differentiation and cost control
(2) Low Cost Producer, differentiation and focused Niche
(3) Specific strategic issues, vertical integration strategies and supply
strategy
(4) Managerial resources, profitability and focused Niche
20. The stages of corporate development provide a way for the strategic
manager to analyze:
(1) Personal objectives, entrepreneurial skill
(2) Managerial abilities, opportunity and threats
(3) Frequently encountered version, functional management
(4) Competitiveness, aggressiveness
June 2015
21. Which of the following statements is correct?
(1) Balanced score cards always report using the same time periods as the
financial accounting system.
(2) One fundamental idea of balanced score card is to increase the number of
performance indicators used to manage the business.
(3) Organizationssometimes use a ―traffic light‖ system on their balanced score
card to help them priorities their activities.
(4) The fundamental idea of balanced score cards is to create corporate strategy.
22. What metaphor is used to describe the competitive space where product are
not yet well defined, competitors are not well-organized and the market is
relatively unknown?
(1) Blue Lagoon
(2) Blue Ocean
181
(3) Red Sea
(4) Red Ocean
23. Michael E. Porter‟s five generic strategies are :
(1) Differentiation (Best Value). Differentiation (Low Cost), Cost Leadership
(Large), Cost Leadership (Small), Focus
(2) Focus (Large), Focus (Small), Cost Leadership (Small), Cost Leadership
(Large), Differentiation
(3) Cost Leadership (Low Cost), Cost Leadership (Best Value), Differentiation,
Focus (Low Cost), Focus (Best Value)
(4) Cost Leadership (Large), Cost Leadership (Small), Differentiation (Large),
Differentiation (Small), Focus
24. One of the strategic decisions relating to the value chain concerns vertical
integration. This would involve:
(1) Deciding to link all activities using Enterprise Resource Planning.
(2) Deciding whether the activity should be performed within the organization
or by a different firm.
(3) Deciding whether to locate operation in the home country or in a foreign
location.
(4) Deciding whether to share certain activities across different products and
markets.
25. “Pepsi Co launched a hostile takeover of Pepsi Bottling Group after its
$ 4.2 billion offer was rejected”. Which strategy was used in this case?
(1) Market Penetration(3) Horizontal Integration
(2) Backward Integration(4) Forward Integration
Dec 2014
26. At which level in the company should market-oriented strategic planning
begin?
(A) Corporate level
(B) SBU level
182
(C) Marketing Department‘s level
(D) Brand Manager‘s level
27. Which of the following statements is not true?
(A) A group of firms following the same strategy in a market is called a
‗strategic group‘.
(B) The members of strategic group are the key competitors.
(C) The type of competition among them is known as generic competition.
(D) The height of entry barriers differ for each group.
28. In India Proctor & Gamble (P & G) (Home products division) is following
the strategy of
(A) Cost leadership
(B) Differentiation
(C) Broad differentiation
(D) Focused differentiation
29. Today, mobile phones have many features such as camera, GPS,
Internet, music and videorecording. This is an example of
(A) Convertibility of Industries
(B) Combination of Industries
(C) Competition among Industries
(D) Convergence of Industries
30. An organization that is downsizing to reduce cost is implementing a
strategy of
(A) Growth
(B) Focus
(C) Renewal
(D) Stability
June 2014
31. Indicate the statement which is not correct:
183
i. Credit risk is loss on account ofdefault of repayment of loan.
ii. Liquidity risk is the risk onaccount of the mismatches ofcash inflow and
outflow in afirm.
iii. Basic risk is the risk in a firmowing to the differences in theindex to which
financial assetsand liabilities are tied up.
iv. Forward rate agreement is acontract where a borrower /lender locks the
interest rateand protects itself from the losson account of change in thefuture
interest rate.
Codes:
(A) i and ii
(B) ii and iii
(C) iii and iv
32. Which of the following facts are notcorrect in the context of India‟s
relations with the WTO?
i. India has been the foundermember of the GATT.
ii. India has agreed to abide by thearrangement on the intellectualproperty
rights.
iii. Under the trade-relatedinvestment measures, India hasalready notified its
stand.
iv. India has agreed to allow entrytoForeign Service providers.
v. The Indian government hasamended the Civil Procedure
Code for the benefit of Foreign Service providers.
Codes:
(A) i and ii (B) ii and iii
(C) iv only (D) v only
33. Intra-firm transfer of technology is found when
(A) the price of technology development is very low.
184
(B) it is difficult to protect the technology through patents.
(C) the price of technology is very high.
(D) the technology is developed in association with an allied firm
34. Match the theories of Foreign Direct Investment with their
contributors:
(Theory) (Contributor)
a. Industrial Organization Theory i. Kemp &McDougall
b. Location Specific Theory ii. Hood and Young
c. Product Cycle Theory iii. Stephen Hymer
d. Two-Country Model iv. Raymond Vernon
Codes:
abcd
(A) i ii iii iv
(B) iv iii i ii
(C) iii ii iv i
(D) i ii iv iii
35. Assertion (A): The laws regarding patents and trademark are
ineffective in many countries.
Reasoning (R): There are cases when a government does not abide by the
rulings of theInternational Court of Justice.
(A) (A) and (R) both are 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) (R) is correct, but (A) is not correct.
Dec 2013
185
36. Double taxation relief is normally provided by the country in which the
parent company has its legal residence. It is provided in the following modes:
i. Credit system without deferral
ii. Credit system with deferral
iii. Deduction of tax paid abroad as expenditure
iv. Investment credit
v. Tax subsidy
Identify the correct combination.
Codes:
(A) i, ii, iii and iv
(B) i, ii, iv and v
(C) ii, iii, iv and v
(D) i, ii, iii and v
37. The strategies of a global firm are affected by the following factors:
i. Different countries have different labor mixes.
ii. The legal, economic, social and cultural environment varies from one
country to another.
iii. Different countries have different time lines and geographical
boundaries.
iv. Political relationship between the home country and the host country.
Indicate the correct combination.
Codes:
(A) i, ii and iii
(B) ii, iii and iv
(C) i, ii and iv
(D) i and ii only
38. Match the items of List – I and List – II:
186
a. UNCTAD I i. India
b. UNCTAD II ii. Brazil
c. UNCTAD X iii. Thailand
d. UNCTAD XI iv. Switzerland
Indicate the correct matching.
Codes:
abcd
(A) iv i iii ii
(B) iii i iv ii
(C) ii i iii iv
(D) iv i ii iii
39. In the context of International Business, whether an equal distribution of
income in the host country:
(A) Has nothing to do with the MNCs market segmentation strategy.
(B) Matters greatly to the MNCs market segmentation strategy.
(C) Has little impact on the MNCs market segmentation strategy.
(D) Has a significant impact on the MNCs market segmentation strategy if the
economy is atthe take-off stage.
40. Statement-I: Cost of retained earnings is included in the cost of equity in the
context of international business.
Statement-II: Interest rate swap and currency swap are used
interchangeably in international business.
(A) Statement I is true, but Statement II is false.
(B) Statement I is false, but Statement II is true.
(C) Both the statements I and II are true.
(D) Both the Statements I and II are false.
Sept 2013
187
41. In BCG Matrix which division represents the organization‟s best long- run
opportunities for growth and profitability?
(A) Question marks
(B) Stars
(C) Cash Cows
(D) Dogs
42. 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)
43. 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 PlanningMatrix (QSPM).
(D) EFE Matrix, the IFE Matrix and Quantitative Strategic Planning Matrix
(QSPM).
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:
188
abcd
(A) 4 3 1 2
(B) 4 2 3 1
(C) 1 3 2 4
(D) 1 2 3 4
(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) JapaneseCultureiv. A culture wherein you do
notsoftenupexecutiveswithpraisebeforecriticize.
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
June 2013
41. In context of Industry Analysis which matrix allows strategists to
summarize and evaluate economic, social, cultural, demographic,
environmental, political, governmental, legal, technological and competitive
information?
(A) EFE Matrix
(B) CPM Matrix
(C) BCG Matrix
189
(D) IFE Matrix
42. Which among the following best describes the process of gaining
competitive advantage in a firm?
(A) Strengths → Weaknesses →Distinctive Competencies → Competitive
Advantage
(B) Weaknesses → Strengths →Distinctive Advantages →Competitive
Advantages
(C) Weaknesses → Strengths →Distinctive Competencies →Competitive
Advantages
(D) Distinctive Competencies →Weaknesses → Strengths →Competitive
Advantages
43. According to Porter, the nature of competitiveness in a given industry can
be viewed as a composite of the following five forces:
1. Rivalry among competing firms.
2. Potential entry of new competitors.
3. Potential development of substitute products.
4. Bargaining power of suppliers.
5. Bargaining power of consumers.
Identify the force which is central (most powerful) to remaining four:
(A) Potential development of substitute products.
(B) Potential entry of new competitors.
(C) Bargaining power of consumers.
(D) Rivalry among competing firms.
44. Match the following: Organizational Structure Advantage
a. Functional Structure 1. Clarity of project objectives
b. Divisional Structure 2. Smooth delegation of authority and
responsibility
c. Matrix Structure 3. Simple and unexpensive
d. Strategic Business Unit (SBU) 4. Ease of fixing accountability
190
Codes:
abcd
(A) 1 2 3 4
(B) 3 4 1 2
(C) 3 4 2 1
(D) 4 3 1 2
45. A sound business opportunity is theresult of appropriate interaction
between:
(A) Needs of the society
(B) Capabilities of an entrepreneur
(C) Resources available in the environment
(D) all of the above
Dec 2012
46. What describes the market, product and technological areas of business?
(A) BCG Matrix
(B) GE Nine Cell Matrix
(C) 7‘s framework
(D) Company‘s Mission
47. Name the factors taken into consideration in Internal Analysis
(A) Firm Resources
(B) Objective, plans and policies of the firm
(C) The type of business involved
48. Diversification is to a new business area that has no obvious connection
with any of the company‟s existing areas refer to
(A) Forward integration
(B) Backward integration
191
(C) Conglomerate diversification
(D) Concentric diversification
49. Which business unit generates substantial cash surplus due to low industry
growth rate and high profit share?
(A) Dog
(B) Cash cow
(C) Question mark
(D) Star
50. Who plays an important role in the success of products and services and in
increasing the marketing share of the firm in business?
(A) Functional level Managers
(B) Corporate level Managers
(C) Business level Managers
June 2012
51. WTO comes into being in the year
(A) 1975
(B) 1985
(C) 1995
(D) 2001
52. Which of the following is not Porter‟s generic strategy?
(A) Focus
(B) Cost Leadership
(C) Differentiation
(D) Market segmentation
53. Globalization involves
(A) Free flow of technology from one country to another
192
(B) Free flow of investment from one country to the other
(C) Free flow of people from one country to the other
(D) All the above
54. Which is a short-term strategy for a firm?
(A) Corporate strategy
(B) Business strategy
(C) Company mission
(D) Functional strategy
55. Which is not a global entry strategy?
(A) Exporting
(B) Joint venture
(C) Merger and Acquisition
(D) Blue ocean strategy
Dec 2011
56. Eliminate – reduce – raise – create grid is germane to
(A) Competitive Strategy
(B) Blue Ocean Strategy
(C) Red Ocean Strategy
I. Ansoff 1. Case competency
II. C.K. Prahlad 2. Management by Objectives
III. Peter F. Drucker 3. Cascade Approach
IV. Alfred Chandler 4. Structure follows Strategy
Codes:
193
I II III IV
(A) 1 3 2 4
(B) 2 3 1 4
(C) 3 1 2 4
(D) 4 2 3 1
58. Growth strategy requires that a firm should
(A) Realign its product market environment
(B) Acquire new firm
(C) Go for new product development
(D) Expand the market
59. Michael Porter‟s five forces model belongs to
(A) Planning School
(B) Positioning School
(C) Cognitive School
(D) Competitive Strategy School
60. The theory of business of an organization is embodied in
(A) Vision
(B) Mission Statement
(C) Objectives
(D) Policies
June 2011
61. “We must forget to learn and learn forgetting” is ascribed to
(A) Tom Peters
(B) Peter F. Drucker
(C) Abraham S. Maslow
(D) Garry Hamel
194
62. In highly competitive environment an organization to achieve sustained
success should be
(A) Better
(B) Bigger
(C) Resilient
63. Corporate governance is about
(A) Crafting the strategy
(B) Compliance with regulatory regime
(C) Satisfying the stakeholders
(D) Governing the company in the interest of government in power
64. Strategic planning is about
(A) Strategic thinking
(B) Strategic programming
(C) Tactical Planning
(D) Portfolio Planning
65. If two or more companies are merged and only one of them survives while
others loose their independent entity, it is referred to as
(A) Merger
(B) Absorption
(C) Amalgamation
(D) Combination
Dec 2010
66. Which of the following is the characteristic of a strategic business unit?
(A) It serves a homogenous set of markets.
(B) It serves a unique set of products.
(C) It owns responsibility for its own profitability.
195
(D) All of the above.
67. Which one of the following is not a generic strategy?
(A) Cost Leadership
(B) Product Differentiation
(C) Cost focus
(D) Group focus
68. A retrenchment strategy is designed to reduce
(A) Technical losses
(B) Financial losses
(C) The scale and scope of the business operation
69. World Trade Organization provides
(A) Rule based multilateral trading system.
(B) Equity and social justice to the people.
(C) Rule based regional trading system
June 2010
70. What enables the management to find out whether the strategic
management processes are appropriate, compatible and functioning in the
desirabledirection?
(A) Implementation control
(B) Special alert control
(C) Premise control
(D) Strategic control
71. Which one is not the part of Michael Porter‟s five forces model?
(A) Threat of substitutes
(B) Firm‘s core competence
196
(C) Rivalry among existing players
(D) Threat of new entrants
72. Which of the following strategy is regarded unfair?
(A) Collusion
(B) Strategic alliance
(C) Differentiation
(D) Turnaround strategy
73.Which of the following relationship strategies result into forming of a new
organization?
(A) Strategic alliance
(B) Partnership
(C) Joint venture
74. A growth strategy is designed to increase
(A) The scale and scope of the Business operations.
(B) The corporate image of the business.
(C) Corporate social responsibility of business.
(D) None of the above.
75. Cost leadership strategy is related to
(A) Functional strategy
(B) SBU strategy
(C) Corporate strategy
(D) Global strategy
76. Countries derive their competitive advantage in international trade through
their
(A) Comparative cost advantage
(B) Contribution to the World trade
197
(C) Natural endowments
77. Which analysis helps to understand the strength and weaknesses of a firm?
(A) Environment analysis
(B) Business analysis
(C) SWOT analysis
Dec 2009
78. Which of the following helps a manager to identify the opportunities and
threats in the competitive industry environment?
(A) Analysis of organizational structure.
(B) Analysis of competitive forces.
(C) Analysis of operations.
(D) Market Research
79. Essence of strategy at strategic Business Unit level is
(A) How to build core competency
(B) How to gain competitive advantage
(C) How to gain market share
80. Which one of the following is a primary activity in a value chain?
(A) Operations (B) Firm infrastructure
(C) Technology development (D) Procurement
81. Business unit which holds a large market share in a mature and slow
growing industry is called
(A) Star (B) Dog
(C) Question Mark (D) Cash cow
198
82. Which strategy requires a company to concentrate its efforts in one or more
narrow segments instead of broad based strategy?
(A) Cost leadership (B) Focus
(C) Differentiation (D) None of the above
June 2009
83. Which element identities the strategic factors that determine the future of a
firm?
(A) Environmental Scanning
(B) Strategy Formulation
(C) Strategy Implementation
(D) Strategy Evaluation and Control
84. Which strategy provides a means for achieving a company‟s annual
objectives?
(A) Marketing Strategy(C) Business Strategy
(B) Operating Strategy(D) Corporate Strategy
85. Which of the following is not a primary activity in a value chain?
(A) Human Resource Management (C) Operations
(B) Marketing and Sales (D) Outbound logistics
86. Which one of the following represents the best long run opportunity in a
firm‟s business portfolio?
(A) Star (C) Cash COW
(B) Question Mark (D) DOG
87. A firm tries to achieve the lowest cost of production and distribution so that
it can set its prices at a lower level than its competitors. Which generic strategy
it is following?
(A) Cost leadership (C) Focus
(B) Differentiation (D) All of the above
88. Which method of product portfolio analysis helps in deciding which
products are to be retained and which are not to be retained?
199
(A) Ansoff‘s Matrix (C) BCG Matrix
(B) Environment Matrix (D) All of the above
200
Unit IX:-Entrepreneurship and Small Business
Concepts- Types, Characteristics Motivation, Competencies and its
Development and Development to be shifted from 8th Chapter and
Entrepreneurship, Small Business- Concept Government Policy for Promotion
of Small and Tiny Enterprises , Process of Business Opportunity Identification,
Detailed Business Plan Preparation, Managing Small Enterprises, Planning for
Growth; Sickness in Small Enterprises, Rehabilitation of Sick Enterprises,
Intrapreneurship ( Organizational Entrepreneurship)
Nov 2017
1.Elements of entrepreneurial competencies, according to the theorist of the
subject, pertain to which one of the following?
1. Body of Knowledge set of skills, cluster of appropriate motives and traits
2. Ability to prepare viable project, executional skills and materlisation of group
goals
3. Ability to work in a group, enforce dynamics and motive employees
4. Assigning priorities to hierarchy of Maslow‘s monetary needs and non-
monetary needs
2. Under the new norms of Micro, Small and Medium Enterprises Development
(MSMED) Act 2006, the criteria of investment limit in plant and machinery for
MSME falls under which one of the following category?
1. Micro Rs25 lakh, small Rs5 crore, Medium Rs10 crore
2. Micro Rs20 lakh, small Rs2.5 crore, Medium Rs5 crore
3. Entrepreneurial Judo Strategy aims at which one of the following?
1. Filling holes left by others in the industry
2. Developing effectiveness in the industry
3. Mobilizing finance and effective use to reduce NPAs
4. Creating competitive environment in the environment of SMMEs.
201
4. Preparation of a business plan as a pre-requisite to a promotion of a business
enterprise, relates to which one of the following?
1. There is no flaw in the business idea, the fashion, conviction and tenacity of
the entrepreneur.
2. Make arrangement for finance and prevent occurrence of NPAs by business
entity.
3. Ensure that business entity works at break-even level
4. Make plan to raise finance from market and alternative investment
opportunities
5. Federation of Associations of Small Industries of India (FASII)
promoted in 1959 is which one of the following type?
1. Government organization
2. Liaisoning organization
3. Small Scale Unit
4. SSI Board
Jan 2017
6. Match the items of List – I with the items of List – II and select the code of
correcting matching:
a. Richard Cantilloni. Entrepreneur must accept the challenge and should be
willing hard to achieve something
b. Joseph A. Schumpeter ii. Entrepreneurs are all those persons who are
engaged in economic activity.
c. J.K. Golbraith iii. Entrepreneur is a person who introduces
innovation and change.
Codes:
a b c
1. iii ii i
2. i iii ii
3. ii iii I
202
4. ii i iii
7. Total Quality Management, job redesigning, new techniques of doing things
and management by consensus are the examples of which one of the following?
(1) Opportunistic entrepreneurship
(2) Administrative entrepreneurship
(3) Incubative entrepreneurship
(4) Mass entrepreneurship
8. Under technology and quality upgradation support to help manufacturing
MSMEs buy energy efficient technologies for production, what percentage of
the actual expenditure is provided as financial support by the Government of
India?
(1) 75%
(2) 60%
(3) 50%
(4) 25%
9. Which one of the following is not a personal characteristic of an
entrepreneur?
(1) Innovative (3) Practical
(2) Hardworking (4) Submissive
10. Which one of the following is the most insignificant reason for sickness in
SSI sector?
(1) Power shortage (3) Management problems
(2) Lack of demand (4) Equipment problems
July 2016
11. Statement – I: VED analysis is meant for project maximization.
Statement – II: Network analysis is independent of planning process.
Codes:
(1) (I) is correct but (II) is incorrect.
203
(2) (II) is correct but (I) is incorrect.
(3) Both (I) and (II) are correct.
(4) Both (I) and (II) are incorrect.
a. A promotion assistance for development of Khadi i. SRUTI
b. A scheme of fund for registration of traditional industries ii. ISEC
c. Interest subsidy eligibility for all institutions registered
under KVIC iii. MDA
Codes:-
a b c
1. iii i ii
2. iii ii i
3. i iii ii
4. i ii iii
13. Under the Sick Industrial Companies (Special Provisions) Act, 1985, the
public sector companies were covered from which year?
(1) February, 1994 (2) January, 1990
(3) December, 1991 (4) None of the above
14. Industrial Reconstruction Bank of India (IRBI) which was reconstituted
into a full-fledged all-purpose developmental financial institution with effect
from March 27, 1997 was renamed as .
(1) Small Industrial Development Bank of India
(2) Industrial Investment Bank of India Ltd.
(3) Industrial Finance Corporation of India
(4) Board of Industrial and Financial Reconstruction
204
15. Non-availability of required project planning capability is due to
.
(1) Poor general management
(2) Poor professional management
(3) Poor entrepreneurial management
(4) Poor marketing management
Dec 2015
16. Which of the following are included as external factors affecting industrial
sickness?
(a) Changes in fiscal and monetary policies
(b) Price and distribution
(c) Non-availability of inputs
(d) Industrial relations
(e) Capital market fluctuations
Code:
(1) (a), (b), (c) and (d) (3) Only (a), (b) and (c)
(2) (b), (c), (d) and (e) (4) (a), (b), (c), (d) and (e)
17. Statement (I): - “Motivation is a continuous, complex and dynamic
process”.
Statement (II):- “As compared to other industries, extra motivation is required
in service sector industries”.
(1) Statement (I) is correct but Statement (II) is incorrect.
(2) Statement (II) is correct but Statement (I) is incorrect.
(3) Both the Statements (I) and (II) are correct.
(4) Both the Statements (I) and (II) are incorrect.
18. Assertion (A):- The function of entrepreneurs is to reform or revolutionize
the pattern of production by exploiting an invention or, more generally, an
untried technological possibility for producing a new commodity or producing
an old one in a new way.
205
Reasoning (R): - Lack of innovations will usually reduce the life span of a
product and/or service.
Code:
(1) Assertion (A) and Reasoning (R), both, are correct, and (R) is correct
explanation of (A).
(2) Assertion (A) and Reasoning (R), both, are correct, but (R) is not right
explanation of (A).
(3) Assertion (A) is correct, whereas Reasoning (R) is incorrect.
(4) Reasoning (R) is correct, whereas Assertion (A) is incorrect.
19. A business idea becomes a good business opportunity when it covers which
four of the following?
(a) Attractiveness (b) Foreign Collaborations
(c) Political Support (d) Timeliness
(e) Durability (f) Value addition to end user
Code:
(1) (a), (b), (d) and (e) (3) (a), (d), (e) and (f)
(2) (a), (b), (e) and (f) (4) (b), (c), (e) and (f)
20. Which of the following are correct for an entrepreneur?
(a) Is an independent person
(b) Makes his/her own decisions
(c) has the opportunity of realizing dreams
(d) Has good financial strength
(e) Has undergone a systematic business training
(f) Has immense job satisfaction
Code:
(1) (a), (b), (c) and (d)
(2) (a), (b), (c) and (e)
(3) (a), (b), (c) and (f)
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(4) (a), (b), (d) and (f)
June 2015
21. Who viewed entrepreneur as a non-fixed income earner with known costs
of production but uncertain income and therefore, operating at a risk?
(1) Adam Smith(2) Richard Contillon
(3) Jean-Baptiste Say (4) Francis Wolker
22. Which one of the following is not a major area of entrepreneurial
innovation as suggested by Joseph Schumpeter?
(1) Product innovation(3) Market innovation
(2) Process innovation (4) Structural innovation
23. Which one of the following types of entrepreneurs are not proactive in
nature and does not respond much to changes in the environment?
(1) Fabian entrepreneur (3) Drone entrepreneur
(2) Adoptive entrepreneur (4) Innovative entrepreneur
24. SFURTI (Scheme of fund for regeneration of traditional industries) is
implemented by:
(1) Union Ministry of Traditional Industries
(2) National Agricultural cooperative Marketing Federation
(3) Federation of Indian Chamber of Commerce and Industry
(4) Union Ministry of Micro, Small and Medium Enterprises
25. According to the Tiwari Committee report, which one of the following is
not an internal cause of industrial sickness in India?
(1) Lack of manpower planning (3) Excessive expenditure
(2) Lack of control systems (4) Excessive tax policies
Dec 2014
26. Who propounded entrepreneurship as a theory of business?
(A) Daniel Goleman
(B) Joseph A. Schumpeter
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(C) Thomas A. Coleman
(D) Warren Buffet
27. Who among the following is not the first generation entrepreneur?
(A) DhirubhaiAmbani
(B) Shiv Nadar
(C) K. Anji Reddy
(D) G.D. Birla
28. Which of the following is not a possible route to market entry for a small
business owner/entrepreneur?
(A) Franchise
(B) Corporate Venture
(C) Outright Purchase
(D) Buy-out
29. The number of items which can be exclusively manufactured in the small
scale sector are
(A) 20 items
(B) 35 items
(C) 50 items
(D) 62 items
30. Which of the following is an external reason for the sickness of a small
business?
(A) Choice of an idea
(B) Inadequate finance
(C) Volatile business environment
(D) Lack of vertical and horizontal integration
June 2014
31. A study conducted by the Entrepreneurship Development Institute of India,
Ahmedabad, revealed that the possession of competencies is
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necessary for superior performance of the entrepreneurs. The study was conducted
under the guidance of
(A) James T. McCrory
(B) David C. McClelland
(C) James J. Berna
(D) P.L. Tandon
32. is considered as a creative capital which performs economic
functions different from other investment vehicles, which primarily serve as the
expansion capital.
(A) Equity Capital
(B) Fixed Capital
(C) Venture Capital
(D) Share Capital
33. Which is the apex body in India for formulating the policy in respect of
entrepreneurship development?
(A) Reserve Bank of India
(B) Small Industrial Development Bank of India
(C) National Entrepreneurship Board
(D) Industrial Development Bank of India
34. means identifying and imitating the best in the world at specific
tasks.
(A) Quality circle
(B) Bench marking
(C) Strategy
(D) Outsourcing
35. Which of the following factors can be regarded as a symptom of industrial
sickness?
(A) Lowering the employee‘s morale
(B) Delay and default in the payment of dues
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(C) Continuous decrease in the price of its shares
Dec 2013
36.Who said – “An entrepreneur always searches for change, responds to it and
exploit it as an opportunity.”?
(A) James Burna
(B) McClelland
(C) Peter F. Drucker
(D) Robert C. Ronstadt
37. „Kakinada Experiment‟ on achievement motivation was conducted in
(A) Uttar Pradesh
(B) Jammu & Kashmir
(C) Andhra Pradesh
(D) Gujarat
38. The entrepreneurial process consists of the following steps:
i. Management of the resulting enterprise.
ii. Determination of the required resources.
iii. Identification and evaluation of the opportunity.
iv. Development of the business plan.
Indicate the correct sequence. Codes:
(A) iii iv i ii
(B) iv i iii ii
(C) iii iv ii I
(D) iv i ii iii
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39. Match the items given in List – I and List – II:
a. Market Research i. Sales promotion
b. Financial Plan ii. Form of business
c. Ownership iii. Budgeting
d. Marketing Plan iv. Exploring market
opportunity
Codes:
abcd
(A) i ii iii iv
(B) iv iii i ii
(C) iv iii ii I
(D) i ii iv iii
40. TePP stands for
(A) Technology for Promotion and Production
(B) Trade for Profitability and Productivity
(C) Technopreneur Promotion Programme
Sept 2013
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
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
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poverty through redesigning our institutions and policies.” This preamble refers
to
(A) Women Entrepreneurship
(B) Corporate Entrepreneurship
(C) Social Entrepreneurship
(Subject) (Technique)
a. Entrepreneurship 1. Innovation
b. Marketing 2. Promotion Mix
c. Inventory Management 3. Reorder Level
d. HR Planning 4. Appraisals
Codes:
abcd
(A) 1 3 2 4
(B) 1 2 3 4
(C) 4 3 2 1
(D) 4 2 3 1
tasks and functions.
(A) Quality circle
(B) Outsourcing
(C) Bench marking
(D) Continuous Improvement
(a) Action planning (i) New Actions are taken and old habits are
broken.
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(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)
June 2013
46. “An entrepreneur always searches for change, responds to it and exploits it
as an opportunity.” Who said it?
(A) F.W. Taylor
(C) J.R. Tulsian
(D) Max Weber
47. An industrial unit, according to RBI, is sick if
(A) Incurred cash loss in the previous 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.
48. Which is not the object of Entrepreneurship Development
Programmes?
(A) To create successful entrepreneur
(B) To remove doubts of entrepreneurs and to give solutions to the problems
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(C) To create awareness about Government schemes and programmes
a. Central Manufacturing Institute 1. Deals with paper industry
b. Central Pulp and Paper Research Institute 2. Deals with pollution
control in Indian Tannerics
c. Central leather Research Institute 3. Deals with Machine Tools
d. Electronic Service and Training Centre 4. Deals with training,
technical and consultancy services
Codes:
abcd
(A) 1 2 3 4
(B) 3 1 2 4
(C) 2 3 4 1
(D) 4 3 1 2
50. The customer joining the queue and leaving it afterwards is defined as
(A) Jockeying
(B) Balking
(C) Reneging
Dec 2012
51. Entrepreneurship as a theory of business was propounded by
(A) Douglas McGregor
(B) Thomas A. Coleman
(C) Joseph A. Schumpeter
(D) Adam Smith
52. Policies related to Revival of Sick Units are framed by
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(A) IIFT (B) CSIR
(C) SEBI (D) MSME
53. The book „Innovation and Entrepreneurship‟ is written by
(A) Harold Koontz
(B) Blake and Mouton
54. State Financial Corporation Act encourages in
(A) Establishing Industrial Estates
(B) Establishing small and medium size industries
(C) Establishing Agricultural Farms
55. Name the Author of Equity Theory of Motivation.
(A) Blake & Mouton
(B) Strube& Garcia
(C) Stancy Adams
(D) Albert Bandura
June 2012
56. Which one is not the characteristic feature of Entrepreneurship?
(A) Vision
(B) Risk Bearing
(C) Initiative and Drive
(D) Disloyalty
57. Which of the following organizations is meant for promoting small scale
industries at district level?
(A) SIDBI
(B) DIC
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(C) SFCs
(D) NABARD
58. The reason for sickness of small scale industry is
(A) Lack of capital
(B) Lack of market
(C) Severe competition
(D) All the above
59. The measure taken by Government to promote small scale industry.
(A) Provision of land
(B) Provision of marketing facilities
(C) Arrangement of credit and raw materials
(D) All the above
60. Small and medium enterprises are
(A) Labor intensive
(B) Capital intensive
(C) Market leader
(D) Industry price determiner
Dec 2011
61. Service Sector is also called
(A) Primary Sector
(B) Secondary Sector
(C) Tertiary Sector
62. The definition of Micro, Small and Medium Enterprises (MSMEs) in India
is based on
(A) Total Sales of the Unit
(B) Investment in machines and equipments
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(C) Market coverage
(D) Export capacity
63. Which one of the following agencies has the power to declare any industrial
unit as a potentially sick unit?
(A) BIFR (B) SIDBI
(C) IRCI (D) FICCI
64. The headquarters of the SIDBI is in
(A) Mumbai
(B) Lucknow
(C) New Delhi
(D) Hyderabad
65. In MSMED Act, 2006, the investment limit for Micro, Small and Medium
Enterprises have been prescribed as
(A) Rs10 lakhs, Rs5crores and Rs10crores
(B) Rs5 lakhs, Rs1 crore and Rs10 crores
(C) Rs5 lakhs, Rs1 crore and Rs5 crores
(D) Rs10 lakhs, Rs10 crores and Rs15 crores
June 2011
66. The MSMED Act, 2006 classified enterprises broadly into
(A) Two categories
(i) Manufacturing enterprises and
(ii) Service enterprises
(B) Three categories
(i) Micro enterprises
(ii) Small enterprises
(iii) Medium enterprises
(C) Four categories
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(iii) Tiny enterprises
(iv) Medium enterprises
(D) Four categories
(i) Tiny enterprises
(ii) Micro enterprises
(iii) Small business enterprises
67. Which sector is called as Primary Sector in India?
(A) Industrial sector
(B) Service sector
(C) External sector
(D) Agricultural sector
68. How many times the census of registered Micro, small and medium
Enterprises (MSMEs) have been made by Small Industries Development
Organization (SIDO)?
(A) 1
(B) 2
(C) 3
(D) 4
69. EDII is situated at
(A) New Delhi
(B) Ahmedabad
(C) Patna
(D) Kolkata
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70. Industrial Policy of which year contained for the very first time a special
thrust on measures for promoting and strengthening small tiny and village
enterprises
(A) 1956
(B) 1991
(C) 1948
(D) 1977
Dec 2010
73. Sick enterprise is referred to
(A) CII (B) RBI
(C) SIDBI (D) BIFR
74. Ethical values are derived from
(A) Corporate philosophy
(B) Organizational culture
(C) Corporate objectives
(D) The religious books
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75. Which of the following is not related to business ethics?
(A) Social responsibility of business
(B) Environmental ethics
(C) Ecological consciousness
(D) Profiteering
76. Which of the following is the cause of sickness of an enterprise?
(A) Lack of adequate capital
(B) Lack of demand for the products
(C) Lack of raw material
June 2010
(B) SBU strategy
(D) Global strategy
their
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(C) SWOT analysis
81. Which one of the following is not the social responsibility of business?
(A) Adopting village for development.
(B) Providing drinking water and medical facilities in remote villages.
(C) Construction of Temples.
(D) Opening in House R & D department.
82. What is the acronym for SIDBI?
(A) Short Investment Development Bank of India.
(B) Stock Investment Development Bank of India.
(C) Small Investment Development Bank of India.
(D) Small Industries Development Bank of India.
Dec 2009
83. Which of the following is an example of an external threat?
(A) New trade regulations (C) Economies of scale
(B) Global sales potential (D) Decreased competition
84. Which of the following has been entrusted with the responsibility of
developing and supporting small business?
(A) IDBI (C) NABARD
(B) RBI (D) SIDBI
85. “Innovation and entrepreneurship” is a book written by
(A) Philip Kotler (C) PradeepKhandwala
(B) C. K. Prahlad(D) Peter F. Drucker
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June 2009
86. What BIFR stands for?
(A) Bureau of Industrial Financial Reconstruction
(B) Board of Industrial Financial Reconstruction
(C) Bureau of Industrial Financial Re-engineering
(D) Board of Industrial Financial Re-engineering
87. Which one of the following is not the reason for sickness of industries?
(A) Inadequate working capital
(B) Huge Market
(C) Out dated Technology
(D) Changing tastes of consumers
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Unit X:- Business Ethics and Management System
Ethics and Management System Ethical Issues and Analysis in Management,
Value Based Organizations, Ethical Personal, Framework for Ethical Choices,
Pressure on Individual in Organizations, gender issues, Ecological
Consciousness, Environment Ethics: Social Responsibility of Business,
Corporate Governance and Ethics
Nov 2017
1. Statement I: - The science of ethics is a normative science
Statement II: - Normative Science judge the value of the facts in terms of an
idea: concerned with judgments of „what ought to be‟ but not with factual
judgments
Code:-
1. Statement I is correct but Statement II is incorrect
2. Statement II is correct but Statement I is incorrect
2. Match the items of List-I with those of List-II and choose the correct
combination:-
List-I List-II
a. Ethics are the principles of conduct governing
an individual or profession i. John Donaldson
b. Ethics is the discipline dealing with what is good
and bad, or right and wrong or with moral duty and
obligation ii. Keith Davis
c. Ethics are a set of rules that defines right and
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wrong conduct iii Shea
d. Business ethics, in short can be described
as the systematic study of moral (ethical) matters
pertaining to business, industry or related activities,
institutions, or practices and beliefs iv. R. Wayne Mondy
Code:-
a b c d
1. iii iv i ii
2. iii iv ii I
3. iv iii ii i
4. i ii iii iv
3. Assertion A: - Decisions in small matters largely tend to set a pattern for the
more important ones you may make as managers.
Reasoning R: - A multi-industry survey conducted in USA indicated that 40%

of the managers said that their superiors had at some time told them to do
certain things unethical
Code: -

2. A is correct whereas R is incorrect
3. A is incorrect whereas R is correct
4. A and R both are correct but R is not the correct explanation of A
4. Deontological theory of ethics is concerned with which of the following?
a. Duty ethics
b. Obligation ethics
c. Rule based ethics
d. Classical ethics
Code: -
1. a and b
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2. a and c
3. a and d
4. a, b, and c
5. Utilitarianism theory of ethics refers to which one the following?
1. Welfare
2. Duty
3. Obligation
4. Rules
Jan 2017
6. Statement – I: Ethical principles tend to be broader than legal
principles.
Statement – II: Laws and ethics are closely related.
Codes:
7. Assertion (A):The state shall endeavor to protect and improve the

environment and to safeguard the forest and wildlife of the country.
Reasoning (R): The Directive principles of state policy of the Indian

Constitution Command the State to ensure protection and improvement of
environment and to safeguard forest and wildlife.
Codes:-
1. (A) is correct but (R) is not correct.
2. (R) is correct but (A) is not correct.
3. Both (A) and (R) are correct and (R) is the right explanation of (A).
225
4. Both (A) and (R) are correct but (R) is not the right explanation of (A).
matching:
List – I (CSR Models) List – II (Emphasis)
a. Ethical Model i. corporate responsibilities limited to private

owners
b. Statist Modelii. Voluntary commitment by companies to public welfare
c. Liberal Model iii. State ownership and legal requirements determine

corporate responsibilities.
d. Stakeholder Model iv. Companies respond to the need of customers,

communities, etc
Codes:-
a b c d
1.ii iii i iv
2. ii i iii iv
3. ii i iv iii
4. i iii ii iv
9. Which one among the following is not correct about J. J. Irani Committee‟s
recommendations on Company Law (2005):
(1) 2/5th of the board of a listed company should comprise of independent

directors.
(2) Introduce the concept of One Person Company (OPC).
(3) Allow corporations to self-regulate their affairs.
(4) Disclose proper and accurate compilation of financial information of a

corporation.
10. A business should act ethically for which of the following reasons?
(a) To prevent harm to the general public
226
(b) To meet stake-holder expectations
(c) To protect their own employees
(d) To maximize profit of the business
Codes:
(1) (a), (b) and (c) only (3) (a), (c) and (d) only
(2) (b), (c) and (d) only (4) (a) and (d) only
July 2016
11. Statement – (I): Ethical decision making is a very tough prospect in this
„dog-eat-dog‟ world. All will have to fall in and play fair.
Statement – (II): In this age of liberalization and globalization, the old dirty
games and ethical conduct will no longer be accepted.
Codes:
(1) Statement (I) and (II) both are incorrect.
(2) Statement (I) and (II) both are correct.
(3) Statement (I) correct, (II) incorrect.
(4) Statement (I) incorrect, (II) correct.
12. The three basic principles of business ethics are shown by which one of the
following?
(1) Utilitarianism, social commitment and reputation
(2) Utilitarianism, societal reputation and justice
(3) Utilitarianism, principle of right and principle of justice.
(4) Principle of right, principle of justice and social commitment
13. Gandhian concept of social responsibility is denoted by which one of the

following?
(1) Social commitment concept
(2) Trusteeship concept

227
(3) Sustainable development concept
(4) Welfare concept
14. CII Committee on Corporate Governance with SEBI as the Custodian of

investors constituted on 7th May 1999 is known by which one of the following?
(1) Dr. J.J. Irani Committee
(2) Kumar Mangalam Birla Committee
(3) Narayan Murti Committee
(4) Working group on the Companies Act
15. Which one of the following denotes good choices of ethical decision
making?
(1) (i) take choice seriously
(ii) Good decisions are both ethical and effective
(iii) Discernment and discipline
(2) (i) ethical actions
(ii) Discernment and discipline
(iii) Stage of social welfare
(ii) Improve ethical decision
(4) (i) good decision are both ethical and effective
(ii) Take choice seriously
(iii) Ethical actions
Dec 2015
228
16. Assertion (A): Social audit has been defined as a commitment to systematic
assessment of and reporting in some meaningful, definable domain of the
company‟s activities that have social impacts.
Reasons (R): The Companies Act 2013 has accorded statutory recognition of
the social responsibility of a corporate entity and gives option to provide a
percentage of profit for the purpose as per discretion of the board.
Code:
(1) Both (A) and (R) are correct, and (R) is the right explanation of (A).
(3) (A) is correct but (R) is not correct.
(4) (R) is correct but (A) is not correct.
17. Which one of the following of „Immanuel Kant‟s‟ Principle, known as
categorical imperatives, is a guide to managerial action?
(1) The managers should be open to share his/her corporate secrets, individual
traits with external agencies.
(2) The managers be free and open to share his individual knowledge and
experience for community‘s gain.
(3) A person‘s action is ethical only if that person is willing for that same action
to be taken by everyone who is in a similar situation.
(4) A person always treats another human being simply as a means to an end.
18. Teleology in ethics supports which one of the following the most?
(1) It is duty-based ethics and measures whether an action is right or wrong.
(2) It measures whether the results of the actions are right or wrong.
(3) It focuses on purpose of each action and judges the consequences of an

action.
(4) It focuses on neutrality and fidelity of an action.
19. Assertion (A): Deontology is duty-based ethics. It is an approach to ethics

that addresses whether the motives behind certain action are right or wrong.
229
Reason (R):Deontology focuses on whether the results of the actions are right
or wrong.
Code:
20.Assertion (A) : Rules notified by the Ministry of Corporate Affairs (MCA)

Sec. 149 of the Companies Act mandates that a listed company having a paid up
share capital of Rs100 crore or more shall appoint at least one woman director
on its board.
Reasons (R):The corporate entities wanted to enhance gender equality and

woman empowerment in corporate governance and company administration.
Code:
(1) Both (A) and (R) are correct.
(2) (A) is correct and (R) is the right explanation of (A).
(3) (A) is correct but (R) is not the right explanation of (A).
(4) Both (A) and (R) are incorrect.
June 2015
21. Which of the following is/are the component(s) of Ethics by field of
interest?
(1) Descriptive ethics (3) Meta ethics
(2) Normative ethics (4) All of the above
22. What is the right sequence of four psychological sub-processes in ethical

action given by James Rest?
(1) Moral sensitivity, moral focus, moral judgment, moral character
230
(2) Moral focus, moral character, moral sensitivity, moral judgment
(3) Moral sensitivity, moral judgment, moral focus, moral character
(4) Moral character, moral focus, moral judgment, moral sensitivity
23. A new approach Learning Model” which is helpful to strengthen the

decision making process was developed by:
(1) Arthur Rich
(2) Bob Garratt
(3) Christian Wolff
(4) Lord Keynes
24. Assertion (A): Corporate behavior towards stakeholders is an

important concept in practice and a central part of corporate Governance.
Reason (R): It has to be ethical, legal and responsible behavior for organization,
stakeholders and society.
(1) Both (A) and (R) are true.
(2) Both (A) and (R) are false.
(3) (A) is false, but (R) is true.
(4) (A) is true, but (R) is not a correct explanation of (A).
25. CSR is important because:
(1) It influences all aspects of Company‘s operation
(2) It gives company‘s mission and strategy
(3) It increases the general affluence and societal expectation
Dec 2014
26. In view of competitive global economy, corporations are involved in cost
cutting, corporate restructuring, mergers and acquisitions and
231
downsizing. All these activities can be carried out successfully only if there is
proper
(A) Business Ethics
(B) Ethical Audit
(C) Corporate Social Responsibility
(D) Corporate Governance
27. Statement (A): Law and moral standards overlap to a certain extent.
Statement (B): Law represents a minimum set of standards for regulating

human behavior in society.
(A) (A) and (B) both are incorrect.
(B) (A) is correct but (B) is not the right explanation of (A).
(C) (A) is correct and (B) is the right explanation of (A).
(D) (A) is incorrect and (B) is a correct statement in isolation.
28. In order to check the growing unethical practices in the field of information
technology, the first cyber law passed in India is
(A) Information Technology Act
(B) Anti-hacking Law
(C) Cyber Law
(D) E-commerce Law
29. Match the items of two lists, indicating the correct code:
a. Transparency i. All stakeholder groups have the

opportunity to maintain or improve their well-being.
b. Equity ii. The State of being answerable for

decisions and activities to all stakeholders.
c. Sustainability iii. Information freely available and

directly accessible to interested parties.
232
d. Accountability iv. The effect which action taken in
the present has upon the options available in the future.
Codes:-
abcd
(A) iii i iv ii
(B) i ii iii iv
(C) ii iii i iv
(D) iii i ii iv
30. Which of the following is not a principle of CSR?
(A) Protecting Environment
(B) Avoiding price discrimination
(C) Promotional activities
(D) Adopting the labor policies
June 2014
31. Assertion (A): Ethical relativism means that there are universal standards
of human behavior.
Reasoning (R): Ethical behavior is primarily personal behavior conforming to

standards of morality.
(1) (A) is correct, and (R) is the right explanation of (A).
(2) (A) is incorrect, and (R) is a correct statement in isolation.
(3) (A) and (R) both are incorrect.
(4) (A) is correct, but (R) is not the right explanation of (A).
32. Clause 49 of SEBI Regulations was amended on
(A) 15 August, 2000
(B) 26 August, 2003
233
(C) 26 January, 2007
(D) 14 February, 2008
33. Fundamental legal obligations in taking corporate business decisions are

formulated on the basis of
(A) Judicial Principles
(B) Moral Principles
(C) Ethical Principles
(D) Legislative Principles
34. Corporate governance mechanism should ensure that corporate

executive make strategic decisions that serve the entire group of
(A) Environmentalists
(B) Government officials
(C) Suppliers
(D) Shareholders
35. Morality of an employee in a business organization depends upon
(A) Individual disposition
(B) Understanding of business activities
(C) Understanding of individual in a group
(D) Family setup of individual employee
Dec 2013
36. Indo-American Model of Corporate Governance sets top most priority to
(A) Business growth
(B) Customers
(C) Employees
234
(D) Shareholders
37. A good governance in corporate sector depends upon
(A) Strong political will
(B) Transparency and accountability
(C) Trade Union practices
(D) Social and political responses
38. Corporate leaders in India in private sector are tempted by a very high target
of and the concerned employee has to achieve the target for promotion and
stability.
(A) Money making
(B) Business growth
(C) Product development
(D) Profit
39. Corporate business ethics is norms and pattern that spring

from organizational view of good and bad, right and wrong.
(A) Social
(B) Behavioral
(C) Institutional
(D) Individual
40. Trade Union strike supporting a political cause and affecting

production activities is a problem related to
(A) Socio-economic phenomenon
(B) Ethical and technical phenomenon
(C) Ethical and economic phenomenon
(D) Socio-political phenomenon
235
Sept 2013
41. 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
42. 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.
List – I List - II
(a) Value (i) AhamBrahmasmi
(b) Unethical behavior (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)
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44. The obligation of an organization behave in a ethical way is known as
(A) Knowledge about ethics
(B) Social responsibility of business
(C) Organizational behavior
(D) Business without ethics
45. 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
work place.
(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)
June 2013
46. Which among the following is not correct with regards to Clause 49 of
SEBI Act?
(A) It came into effect from 31st December 2005.
(B) Clause 49 is related to the Listing Agreement to the Indian Stock Exchange.
(C) It desires 50 percent independent Directors.
47. Which of the following powers of Directors cannot be exercised without the
consent of shareholders in General Meeting?
237
(A) Power to make calls on shareholders
(B) Power to make loans
(C) Power to buy back its shares
(D) Power to borrow monies exceeding the aggregate of the paid-up capital of
the company and its free reserves.
48. The professional having high ranking and trained to uphold the highest
standard and effective operations, compliance and administration as corporate
governance, is known as
(A) Directors of Company
(B) Chairman of Company
(C) Company Secretary
(D) Shareholders
49. Governance is the system of values, policies and institutions by which a

society manages its economic, political and social affairs through interactions
within and among the state, civil society and private sector is defined by
(A) World Bank
(B) UNDP
(C) European Commission
50. Match the following with regards to environmental ethical issues:
a. Ozone Depletion 1. Lead poisoning
b. Environmental Health 2. Deforestation
c. Logging 3. Food controversies
d. Genetic Engineering 4. CFC
Codes:
abcd
238
(A) 4 2 1 3
(B) 4 1 2 3
(C) 4 3 2 1
(D) 4 3 1 2
Dec 2012
51. Anything dealing with Ethics in Business is
(A) Good, bad or both, to the business gains
(B) Not related to religion
(C) Not to focus obligation
(D) Killing all types of Unfair Trade Practices
52. Ethics provide
(A) Consumer Autonomy
(B) CSR
(C) Justice
53. Company seeking ethical standard must purport to
(A) Good Employee Relation
(B) Better Production Portfolio
(C) Economy of Scale
(D) Public Disclosure and Publishing
54. Which of the following is not the act of Corporate Governance?
(A) Protecting the interest of shareholders
(B) Protecting the interest of employees
(C) Fudging of Accounts
239
(D) Paying Taxes to the Government
55. Corporate Social Responsibility (CSR) is looked as the organized network

of making long economic and social relationship of the corporate with the
society. But a business of which type, as mentioned below, cannot afford for it,
at the first instance?
(A) Large Business
(B) Medium Business
(C) Small Business
(D) A Business Start-up
June 2012
56. Business propositions are to be selected by making an analysis that, how
much the local resources will be depleted in the commencement and the course
of Business. This is known as
(A) Sensitivity Analysis
(B) Common Property Resource use
(C) Environmental Impact Assessment
57. Whistle-Blowers are
(A) To be removed from the jobs
(B) To be promoted
(C) To be rewarded for the organizational enrichment
(D) To be protected since they intend to bring out truth
58. Funding through Micro finance to Small and Micro Enterprises is not
successful due to
(A) High rate of interest
(B) Out sourcing of method of providing Micro Finance
240
(C) (A) & (B)
59. “Work-Diversity” by nature, does not go against Ethics. But an executive

assistant while getting transferred from “stores” to “dispatch” section created
turmoil in the office. He is
(A) Most ethical in his deal
(B) Fully against work ethics
(C) He is workoholic
(D) A Rigid employer, hard nut to crack
60. Ethical Management is
(A) A Compromise
(B) A Compulsion
(C) A Judgment
(D) (A) and (B)
Dec 2011
61. The study of moral principles or values that determine whether actions are
right or wrong and outcomes are good or bad refers to following:
(A) Quality (B) Ethics
(C) Opinions (D) Controls
62. Match List – I with List – II:
(Terms relating to Ethics) (Conceptual description of terms relating to

Ethics)
I. Ethical Climate 1. Each society‟s view of ethics must be

considered legitimate and ethical
241
II. Ethical Relativism 2. There are basic moral principles that
transcend cultural and political boundaries
III. Ethical Universalism 3. People pick-up subtle hints and clues that tell
them what behavior is approved and what is forbidden.
IV. Ethical Convergence 4. There are growing pressures on international

business to follow the same rules in managing ethical behavior and social
responsibility
Codes:
I II III IV
(A) 3 1 2 4
(B) 1 3 2 4
(C) 1 4 3 2
(D) 4 1 2 3
63. An organization‟s moral obligation toward all of its stakeholders is referred

as following:
(A) Value in workplace
(B) Corporate social responsibility
(C) Ethical behavior
(D) Professionalism
64. is the manager‟s dilemma when he has to decide on the

commercial proposal submitted by his son.
(A) Favoritism
(B) Moral Dilemma
(C) Conflict of Interest
65. “Make use of paper bags instead of plastic bags.” It is related to
(A) Environmental Ethics

242
(B) Green Marketing
(C) Socially Responsible Marketing
(D) Social Marketing
June 2011
66. Members of organizations are increasingly finding themselves facing
situations in which they are required to define right and wrong conduct. It is
most aptly called as following
(A) Environmental issues of ethics
(B) Social responsibilities of business
(C) Corporate governance & ethics
(D) Ethical Dilemmas of business
67. Situations in which individuals are required to define right and wrong
conduct to be complied with are called as following
(A) Ethical climate
(B) Ethical dilemmas
(C) Code of Ethics
68. Arrange the following steps of a simple ethics programme
I. Walk the talk
II. Size up your company‟s current ethics
III. Train your people
IV. Solicit feedback from your employees
V. Create a code of conduct
Code:
(A) V, I, IV, II, III
243
(B) II, V, IV, III, I
(C) II, V, III, IV, I
(D) II, IV, III, II, I
69. Who is involved in „Shoplifting‟ from the following?
(A) Producer
(B) Seller
(C) Consumer & or a customer
70. Match List-I with List-II.
(Ethical Issue)(Stakeholder affected)
I. Unsafe working conditions 1. Customers
II. Product safety 2. Society
III. Environmental Pollution 3. Employees
IV. Following local laws 4. Host Country
Code:
I II III IV
(A) 2 4 3 1
(B) 3 1 2 4
(C) 1 3 4 2
(D) 3 2 1 4
Dec 2010
71. Value driven companies are
(A) Sure to be successful in the long run.
244
(B) Sure to be unsuccessful as they are not maximizing profits.
(C) Sure to become charitable institutions.
72. Which of the following is not a tool of corporate governance?
(A) Preparation of financial statements
(B) Appointment of independent directors.
(C) Compulsory audit of financial statements.
(D) Time bound promotion of employees.
73. Which of the following is not the social responsibility of the business?
(A) Promotion of Markets
(B) Promotion of Green Environment
(C) Promotion of Education
(D) Promotion of Public Health
74. The Business Code of Conduct provides guidance to managers and

employees
(A) When they encounter an ethical dilemma.
(B) For improving their technical skills.
(C) For pursuing their business goals.
June 2010
77. Identify from the options given below, which one is not a source of
business ethics?
(A) Religion
(B) Legal system
(C) Culture
245
(D) Political system
78. Where law fails,
(A) Ethics also fails
(B) Ethics can succeed
(C) Government can protect
79. Which one of the options is not an ethical issue for an organization?
(A) Save water
(B) Save energy
(C) Save money
(D) Respect woman
(A) Economies of scale
(B) Decreased competition
(C) New Trade Regulations
(D) Global sales potential
Dec 2009
83. Strategizing within value frame work is an approach of
(A) Management (C) Governance
(B) Administration (D) Stake holders
84. Social responsibility means that a business
(A)Functions efficiently without harming the society
(B)Abjures the profit motive

(C) Keeps pollution under check
246
(D) Pays its Taxes to Government
June 2009
85. Environmental Ethics refers to:
(A) Unfair Trade Practices (C) Product price
(B) Pollution (D) Quality of the product
86. Corporate governance includes management of:
(A) Employees (C) Society
(B) Organization (D) All of the above
247
SECTION 2
FULL PAPERS
WITH
ANSWERS
248
UGC NET PAPER II NOVEMBER 2017
1. Managerial economics is concerned with which combination of the
following?
(a) Investment Analysis and Decisions
(b) Production Behavior and Cost Analysis
(c) Input Reward Analysis and Decisions
(d) Economic Environment Analysis
Code:
(1) (a), (b) and (c)
(2) (b), (c) and (d)
(3) (a), (b) and (d)
(4) (a), (c) and (d)
2. When P0 and P1 and Q0 and Q1 denote before and after change in the price
and quantity respectively and in both the situations, total outlay remains the
same, which of the following formulae give the similar value of the arc price -
(a) Qo-Q1 X Po+ P1 ( b) Qo-Q1 X Po

Code:
(1) (b), (c) and (e)
(2) (a), (b) and (e)
(3) (a), (c) and (e)
(4) (b), (c) and (d)

249
3. In case the producer‟s equilibrium shifts to a higher isoquant due to decrease
in price of aninput, the curve combining the successive equilibrium positions is
known as:
4. Which one of the following statements is not correct?
(1) Marginal cost declines at a faster rate as compared to the average cost.
(2) Marginal cost rises at a faster rate as compared to the average cost.
(3) Marginal cost equals average cost where average cost is minimum.
(4) Average cost equals marginal cost where marginal cost is minimum.
5. Cost - Plus pricing is not suitable for:
6. Match the following and select the correct code of matching :

List - I List - II
(a) F.W. Taylor (i) Fair day‘s pay for fair day‘s work
(b) Henry L. Gantt (ii) Motion study
(c) Frank and Lillian Gilbreth (iii) Graphic scheduling for planning and
controlling of work
(d) Max Weber (iv) Bureaucratic organization
Code:
(a) (b) (c) (d)
(1) (i) (ii) (iii) (iv)
(2) (i) (iii) (ii) (iv)
(3) (iv) (iii) (ii) (i)
(4) (iv) (i) (ii) (iii)
250
7. The achievement of goals with the least amount of resources is:
(1) Effectiveness
(2) Efficiency
(3) Productivity
(4) Both (1) and (2)
8. Which one of the following is the fundamental rethinking and radical
redesign of business processes to achieve improvements in performance?
9. Match the following and select the code of correct matching:
List - I List - II
(a) Motivating through rewards (i) Charismatic leadership and
penalties
(b) Changing organization by creating (ii) Situational leadership and
(c) Influencing by dint of personality (iii) Transactional leadership and
charm
(d) Modifying style with respect to (iv) Transformational leadership readiness
of followers
Code:
(a) (b) (c) (d)
(1) (iii) (i) (ii) (iv)
(2) (iii) (iv) (i) (ii)
(3) (iii) (iv) (ii) (i)
(4) (iv) (iii) (ii) (i)
10. Which one of the following is not a „hygiene factor‟ of Herzberg‟s Two
Factor theory?
251
11. Assertion (A): Promotion is a move within the organization to a higher
position that has greater responsibilities and requires more advanced skills.
Reasoning (R): Promotion may not involve a raise in status but a hike in
salary is a must.
Code:
(1) (A) and (R) both are correct.
(4) (A) is incorrect whereas (R) is correct.
(a) Identification of leadership potential (i) Vocational Tests
(b) Finding most suitable area of working (ii) Aptitude Tests
(c) Discovering interest and potential (iii) Intelligence

Tests for acquiring skills
(d) Measuring capacity to think, learn (iv) Personality

Tests and draw relationships
Code:
(b) (b) (c) (d)
(1) (iv) (iii) (ii) (i)
(2) (i) (ii) (iii) (iv)
(3) (iv) (i) (ii) (iii)
(4) (i) (iii) (ii) (iv)
13. Which one of the following is a facility to file anonymous complaints?
252
14. Which of the following is/are not gain sharing plan(s)?
(a) Scanlon Plan
(b) Rucker Plan
(c) Employee Stock Option Plan
(d) Improshare Plan
Code:
(1) (c) only
(2) (d) only
(3) (c) and (d) both
(4) (b), (c) and (d)
15. In which one of the following methods of performance appraisal,

predetermined percentages of rates are placed in various performance
categories?
(1) Alternation Ranking Method
(2) Forced Distribution Method
(3) Paired Comparison Method
(4) Check - list Method
16. Indicate the correct code for the combination from the following regarding
the superiority of the wealth maximization over the profit maximization
objective of the financial management:
(a) It takes into account long term stability and survival of the firm.
(b) It takes care of all other objectives of the firm like exploring and expanding
markets, etc.
(c) It is based on the assumption of perfect competition in the market.
(d) It considers risk along with returns.
253
Code:
(1) (a), (b), (c) and (d)
(2) (b), (c) and (d)
(3) (a), (b) and (d)
(4) (a), (c) and (d)
17. The controller function of the financial management concerns with:
(1) Advertising the public issue of the firm
(2) Negotiating with banks for loans
(3) Analyzing variance between standard costs and actual costs
(4) Estimating the future cash flows from certain project
18. Capital Asset Pricing Model (CAPM) for risk measurement has been given
by:
(1) Sharpe and Lintner
(2) Lintner and Treynor
(3) Sharpe, Lintner and Treynor
(4) Lintner, Modigliani and Miller
19. Beta (β) is a measure of:
(1) Systematic Risk (3) Total Risk
(2) Unsystematic Risk (4) Business Risk
20. Capital budgeting is concerned with:
(1) Arranging cash resources for the project.
(2) Managing the working capital of the firm.
(3) Managing the fixed assets through repairs and renewals.
(4) Evaluating the returns and investment in projects.

254
21. Which one of the following is the demand state where “Consumers dislike
the product and may even pay to avoid it”?
(1) Unwholesome demand (3) Negative demand
(2) Declining demand (4) Latent demand
22. Evaluate the statements according to Brand Asset Valuator Model of Brand
Equity:
Code:
(3) Statement (I) is correct while Statement (II) is incorrect.
(4) Statement (I) is incorrect while Statement (II) is correct.
23. If a coaching institute provides some supporting study material along with
teaching, then which one of the following service mix category would it be?
(1) Hybrid offering
(2) Major Service with accompanying minor goods and services
(3) Tangible good with accompanying services
(4) Pure service
24. Statement (I): A low market - penetration index indicates substantial growth
the market -penetration index is already high.
255
Code:
25. Which one of the following is a system of partnerships and alliances that a
firm creates to source, augment, and deliver its offerings?
(1) Value network
(2) Omnichannel marketing
(3) Integrated marketing channel system
(4) Direct marketing channel
26. Statement (I): Time study is an area of study whose fundamental purpose is
to set time standards for work using different methods.

Code:
27. Which one of the following combinations of the characteristics of the

popular layouts is not matching?

256
Building and small Batch medium
Repetitive batch
volume using
common
operations
Answer is Option 1
28. In the context of distinguishing between forecasting and prediction, which
one of the following statements is false?
(1) Forecasting is based on a theoretical model while prediction may be based
on intuition.
(2) Forecasting reflects management‘s judgment after taking all available
into the future.
(3) Error analysis is possible in the case of forecasting while no error analysis is
(4) No objectivity is found in the case of prediction.
29. An activity that consumes no time but shows precedence among activities
is known as:
30. Which one of the following is not correct matching between level of facility
(1) Global level and site location and selection
(2) Macro layout level and Site planning
(3) Micro layout level and Cell design
(4) Sub - Micro layout level and work station and Cell design
257
31. Which one of the following statements is false?
(1) Sample space refers to the collection of all favorable outcomes of an
experiment.
(2) Collectively exhaustive events are those whose union is sample space.
(3) All the outcomes of an experiment are known as sample space.
(4) Two events are said to be independent if the happening of one does not
affect the probability of happening of the other.
32. Which one of the following is a false statement?
(1) A binomial distribution involves infinite number of trials
(2) The mean and the variance of a Poisson distribution are equal
(3) The standard normal distribution has μ=0 and s=1
(4) The standard deviation of an exponential distribution is equal to its mean
33. In the context of coefficient of correlation (r), match the items of List - I
with the items of List - II and select the code of correct matching:
a. 1- r²
√ni. Probable error of r
b. (0.6745) 1- r²
√nii. Coefficient of determination
c. r² iii. Standard error of r

Code:-
a b c
1. ii i iii
2. iii ii i
3. ii iii i
4. i ii iii
34. Which one of the following statements is true?
(1) If one of the regression coefficients is greater than one, the other must also
be greater than one.
(2) The product of the two regression coefficients is always more than one.
258
(3) Correlation coefficient is the arithmetic mean of the two regression
coefficients.
(4) The signs of the two regression coefficients are always the same.
35. In the absence of which of the following, SPSS can be used as an alternate?
(1) MS Word
(2) MS Excel
(3) MS Access
(4) MS Datapro
matching:-
List- I List-II
(d) Merger of Vodafone and Idea (i) Business Strategy
(e) Launch of Apple iPhone 7plus (ii) Operational Strategy
(f) Manufacturing Samsung mobile
Code:
a b c
1. iii i ii
2. iii ii i
3. ii iii i
4. ii i iii
a. Plan
b. Problem
c. Pattern
d. Position
e. Ploy
f. Perspective
259
Code:-
1. a, b, c, d and e
2. a, b, d, e and f
3. b, c, d, e and f
4. a, c, d, e and f
Code:-
Code:-
1. Unity Strategy
4. Niche Strategy
260
41. Elements of entrepreneurial competencies, according to the theorist of the
(1) Body of knowledge, set of skills, cluster of appropriate motives and traits
(2) Ability to prepare viable project, executional skills and materialization of
group goals
(3) Ability to work in a group, enforce group dynamics and motivate employees
(4) Assigning priorities to hierarchy of Maslow‘s monetary needs and non-
monetary needs
42. Under the new norms of Micro, Small and Medium Enterprises
Development (MSMED) Act 2006, the criteria of investment limit in plant and
machinery for MSME falls under which one of the following category?
(1) Micro Rs25 lakh, small Rs5 crore, Medium Rs10 crore
(2) Micro Rs20 lakh, small Rs2.5 crore, Medium Rs5 crore
43. Entrepreneurial Judo strategy aims at which one of the following?
(1) Filling holes left by others in the industry.
(2) Developing effectiveness in the industry.
(3) Mobilizing finance and effective use to reduce NPAs.
(4) Creating competitive environment in the environment of SMMEs.
44. Preparation of a business plan as a pre-requisite to a promotion of a

business enterprise, relates to which one of the following?
(1) There are no flaws in the business idea, the fashion, conviction and tenacity
of the entrepreneur.
(2) Make arrangement for finance and prevent occurrence of NPAs by business
entity.
(3) Ensure that business entity works at break-even level.
261
(4) Make plan to raise finance from market and alternative investment
opportunities
45. Federation of Associations of Small Industries of India (FASII) promoted

in 1959 is which one of the following type?
(1) Government organization
(2) Liaisoning organization
(3) Small Scale unit
(4) SSI Board
46. Statement (I): The science of ethics is a normative science.
Statement (II): Normative sciences judge the value of the facts in terms of an
idea; concerned with judgments of „what ought to be‟ but not with factual
judgments.
Code:
47.Match the items of List-I with those of List-II and choose the correct
combination:-
List-I List-II
262
Code:-
a b c d
1. iii iv i ii
2. iii iv ii i
3. iv iii ii i
4. i ii iii iv

Code: -

a. Duty ethics
d. Classical ethics
Code: -
1. a and b
263
2. a and c
3. a and d
4. a, b, and c
1. Welfare
2. Duty
3. Obligation
4. Rules
264
UGC NET PAPER II JANUARY 2017
1. Indicate the correct code for the scope of managerial economics from the
following:
a. Demand Analysis
b. Production and Cost Analysis
c. Pricing and Investment Decisions
d. Factor pricing Decisions
e. Economic Environmental Analysis
Codes:
(1) a, b, c, d (2) b, c, d, e
(3) a, b, c, e (4) a, c, d, e
2. Price elasticity of demand for a product is measured by
(1) Ed = ΔQ × ΔP(2) Ed = ΔQ ÷ ΔP
Q P Q P
(3) Ed = ΔP × Q (4) Ed = ΔP ÷ ΔQ
ΔQ P P Q

change)
3. Which one of the following will be the appropriate pricing strategy for a new
4. Match the items of the List – I with those of the List – II and suggest the
correct code from the following:
265
i. Loss Leader a. Locational price differentials
ii. Unchanged Pricingb. Products with high initial demands
iii. Basing Point pricing c. Product line pricing
iv. Skimming Pricing d. Oligopoly pricing
Codes:
i ii iii iv
(1) a b c d
(2) c d a b
(3) d b a c
(4) c a b d
5. In case the firm makes varying investments on the different investment

projects, the appropriate project evaluation technique would be, which one of
the following?
(1) Average annual rate of return technique
(2) Payback period technique
(3) Net present value technique
(4) Profitability index technique
6. According to Henry Fayol, which one of the following combinations of

qualities are required in a manager?
(1) Physical, mental, experience, educational and conceptual
(2) Technical, human, conceptual, mental and moral
(3) Physical, mental, moral, educational, technical and experience
(4) Mental, moral, conceptual, educational, technical and experience
7. Neo-classical organization theory emphasizes on which one of the

following?
(1) Flat structure of organization
266
(2) Tall structure of organization
(3) Coordination by hierarchy
(4) Unity of command
8. According to Graicuna‟s formula of span of management, if a superior has

threesubordinates, what number of cross-relationships would be?
(1) Three
(2) Six
(3) Nine
(4) Eighteen
9. In Reddin‟s „Tridimensional Grid‟, which one of the following is a less

effective style of leadership?
10. Assertion (A): Attribution theory is based on relationship between

personal perception and interpersonal behavior.
depend upon cognitions, particularly perception.
Codes:
(1) (A) is right but (R) is wrong.
(2) (A) is wrong but (R) is right.
(3) Both (A) and (R) are right but (R) does not explain (A).
(4) Both (A) and (R) are right and (R) explains (A).
11. Arrange the following steps of training and development process in the right
sequence:
a. Need analysis
b. Validation
267
c. Evaluation
d. Implement the programme
e. Instructional design
(1) a, e, d, c, b (2) a, e, c, b, d
(3) a, e, b, d, c (4) a, b, e, c, d
12. Which one of the following is related to „Standard of Personnel‟?
13. If an employee desires to pay more than the minimum required contribution
under the Employees‟ Provident Fund and Miscellaneous Provisions Act,
1952, then
(1) Employer shall also pay an amount equal to the total contribution of
employee.
(2) Employer shall pay only half of the additional contribution of employee.
(3) Employer is under no obligation to pay the additional contribution.
(4) The act is silent regarding this matter.
14. Under the Employees‟ State Insurance Act, 1948, sickness benefit can be
paid for which one of the following maximum periods?
(1) 45 days in two consecutive benefit periods.
15. Which one of the following laws is enacted by the Central Government and
(1) The Employees State Insurance Act, 1948
(2) The Employees‘ Provident Fund and Miscellaneous Provisions Act, 1952
268
(3) Factories Act, 1948
(4) The Mines Act, 1952
16. The cost of external equity can be most appropriately computed as per the
(1) Earnings price ratio
(2) Dividend price ratio
(3) Dividend price plus growth ratio
(4) Capital assets pricing model
17. For the following items in List – I and List – II, indicate the correct code
after matching them:
i. Net income approach for capital structure a. Modigliani, M. and Miller

M.H.
ii. Net operating income approach for capital structure b. Robert

Bruner
iii. Irrelevance of capital structure for the value of the firm. c. Ezra
Soloman
iv. FRICT analysis for capital structure d. David Durand
Codes:
i ii iii iv
(1) a b c d
(2) d c a b
(3) d c b a
(4) b a d c
18. Which one of the following is not a feature of „Preference Shares‟?
(1) Prior claim on income / assets of the company over equity shareholders.
269
(2) Redeemability after certain period.
(3) Possessing voting rights on important issues of the company.
(4) May possess the right to participate in surplus profits of the company.
19. The basic consideration for dividend pay-out for a company excludes which
(1) Investment opportunities for the company
(2) Expectations of the shareholders of the company
(3) Legal and financial restrictions for the company
(4) Stability of the dividend considerations
20. For the following two statements of Assertion (A) and Reasoning (R)
indicate the correct code:
Maximization is an appropriate and operationally feasible financial management
goal.
Reasoning (R): There exists a principal-agent relationship between the shareholders

and the management of the company.
Codes:
(2) (A) is correct but (R) is incorrect.
(3) (A) is incorrect but (R) is correct.
21. Which one of the following components is not the part of broad marketing
environment?
(1) Technological environment
(2) Task environment
(3) Demographic environment
(4) Natural environment
270
22. The Coco Cola Company markets a wide range of different beverage
products including bottled water, soft-drinks, juices and sports drinks. Each
product appeals to a different segment. This is an example of which type of
market offering?
(1) Differentiated marketing
(2) Target marketing
(3) Undifferentiated marketing
(4) Intensified marketing
23. Temporarily reducing prices to increase short-run sales is an example of
which one of the following?
24. Match the items of List – I with the items of List – II and indicate the code
of correctmatching:
a. Brand elements i. The marketer‘s vision of what the brand must be and
do for consumers.
b. Brand line ii. All products, original as well as line and

category extensions, sold under a particular brand name.
c. Brand personality iii. Those trademark able devices that serve to
identify and differentiate the brand.
d. Brand promise iv. The specific mix of human traits that may be
attributed to a particular brand.
Codes:
abcd
(1) iii ii iv i
(2) i ii iii iv
(3) iii i iv ii
(4) iv iii ii i
271
25. Statement – I: In developing advertising programme marketing managers
Statement – II: A company may run multiple ad campaigns at the same time,
each emphasizing different aspects of its brand and service.
(1) Only Statement – I is correct.
(2) Only Statement – II is correct.
(3) Both Statements – I and II are correct.
(4) Both Statements – I and II are incorrect.
a. Delphi technique i. Causal quantitative

model
b. Economic modeling ii. Quantitative model

(Naive)
c. Exponential Smoothing iii. Qualitative model
Codes:
abc
(1) i ii iii
(2) iii i ii
(3) iii ii i
(4) ii iii i
272
27. In which one of the following situations, a product-oriented layout is
appropriate?
(1) A medical clinic
(2) An automated carwash
(3) A work Centre for welding, heat treating and painting
(4) A home plumbing repair business.
28. A graphic tool to trace the interaction of several workers with one machine
is termed as
29. Which one of the following is a technique of statistical quality control used
for product control?
30. The decision-criterion in which a decision-maker selects an alternative that
31. Which one of the following expressions relates to an event which
represents the occurrence of either A or B or both?
(1) A ∪ B
(2) A ∩ B
(3) ––
A∩B
(4) (A ∩ ⁻ B) ∪ (⁻ A ∩ B)
32. A Bernoulli process has all but which one of the following properties?
(1) Each trial has two possible outcomes.
(2) The probability of a success on any trial remains fixed over time.
273
(3) The probability of success on any trial is equal to the
Probability of failure.
(4) Trials are statistically independent.
33. Statement – I: The product of coefficient of correlation, standard deviation
of variable „X‟ and Standard deviation of variable „Y‟ gives the measure of
Statement – II : The product of coefficient of correlation between X and Y
variable.
Codes:
(3) Statement – I is correct while Statement – II is incorrect.
(4) Statement – I is incorrect while Statement – II is correct.
34. Statement – I: Both the probable error and standard error of the coefficient
of correlation are different.
Codes:
35. Which one of the following is not the major characteristic of internet?
274
Codes:
statements:
(a) When an organization‘s survival is threatened and it is not competing
(b) Turnaround strategy is used when an organization is performing well but has
not yet reached a critical stage.
profitable.
Codes:
enter a high growth market in which there is already a market leader. Statement
– II: A “Star” is the market leader in a high-growth market, but it does not
necessarily provide much cash.
275
matching:
Codes:
abcd
(1) iv iii i ii
(2) iv i ii iii
(3) iv iii ii i
(4) iii iv ii i
40. Apple computers use a differentiation competitive strategy that
(1) Functional strategy(2) Business strategy
a. Richard Cantilloni. Entrepreneur must accept the challenge
and should be willing hard to achieve something
b. Joseph A. Schumpeter ii. Entrepreneurs are all those persons who
are engaged in economic activity.
276
c. J.K. Golbraithiii. Entrepreneur is a person who introduces
Codes:
abc
(1) iii i ii
(2) i iii ii
(3) ii iii i
(4) ii i iii
India ?
(1) 75% (2) 60%
(3) 50% (4) 25%
entrepreneur?
(1) Innovative (2) Hardworking
(3) Practical (4) Submissive
SSI sector?
(1) Power shortage (2) Lack of demand
(3) Management problems (4) Equipment problems
277
46. Statement – I: Ethical principles tend to be broader than legal principles.
Codes:
47. Assertion (A): The state shall endeavor to protect and improve the
environment and to safeguard the forest and wildlife of the country. Reasoning
(R): The Directive principles of state policy of the Indian Constitution
Command the State to ensure protection and improvement of environment and
to safeguard forest and wildlife.
Codes:
(3) Both (A) and (R) are correct and (R) is the right explanation of (A).
(4) Both (A) and (R) are correct but (R) is not the right explanation of (A).
matching:
(CSR Models) (Emphasis)
a. Ethical Model i. corporate responsibilities limited to private owners.
b. Statist Model ii. Voluntary commitment by companies topublic welfare
communities, etc
Codes:
278
abcd
(1) ii iii i iv
(2) ii i iii iv
(3) ii i iv iii
(4) i iii ii iv
recommendations on Company Law (2005) :
directors.
corporation.
Codes:
(1) (a), (b) and (c) only
(2) (b), (c) and (d) only
(3) (a), (c) and (d) only
(4) (a) and (d) only
279
UGC NET PAPER II JULY 2016
1. The following is the demand function: Q = 100 – 5P
(1) 2.00 (2) 1.00
(3) 0.85 (4) 0.50
2. The short-run cost function of a firm is as under:
TC = 200 + 5Q + 2Q2
(1) 20 (2) 15
(3) 10 (4) 5
correct matching:
a. Sales Revenue Maximization i. Williamson‟s Model
b. Maximization of a firm‟s growth rate ii. Cyert-March Hypothesis

c. Maximization of Managerial Utility function iii. Baumol‟s Theory
d. Satisficing behavior model iv. Marri‟s Theory
Codes:
abcd
(1) iii iv i ii
(2) i ii iv iii
(3) ii iii i iv
(4) iv iii ii i
4. Assertion (A): The perceived risk of operating a domestic firm in
international environment is much higher.
Reason (R): The international environment is more volatile and the domestic
280
Codes:
(3) (A) is correct while (R) is incorrect.
(4) (A) is incorrect while (R) is correct.
5. Statement – I: The accept-reject approach is adopted generally when a firm
has a large amount of funds to invest in several projects at the same time.
(1) Both the statements are correct.
(2) Both the statements are incorrect.
6. Which process is used by a person (perceiver) to deal with conflicting
7. Assertion (A): The physiological needs are essential for living but they are
Codes:
(1) Assertion (A) and Reasoning (R), both are correct, but (R) is not right
explanation of (A).
(2) Assertion (A) and Reasoning (R), both are correct, and (R) is correct
explanation of (A).
281
8. The basic emphasis of theory of organizational design is on flat
structure, decentralization and provision of informal organization.
9. The result variables as the component of mathematical model for measuring
10. Assertion (A): Reinforcement plays a central role in the learning process.
Codes:
11. Most job descriptions contain sections that cover –
12. Match the items of List – I with the items of List – II. The items relate to
a. Results i. Document the learner‟s immediate response to the training.
b. Learning ii. Note supervisor‟s reactions to learner‟s performance

following completion of the training.
c. Reaction iii. Use feedback devices or pre and post tests to measure what
learners have actually gained.
282
d. Behavior iv. Determine the level of improvement in job performance
Codes:
a b c d
(1) iii ii i iv
(2) iv iii i ii
(3) i ii iii iv
(4) iv i iii ii
13. Which one of the following processes allows top management to diagnose
the management styles of supervisors, identify potential, employee problems,
and take corrective action with individual supervisors as necessary?
(1) MBO
(2) Strategic performance appraisal
(3) Organization Development
(4) Upward feedback
14. Statement – I: In competency or skill-based pay, employees are paid for the
range, depth and types of skills and knowledge they are capable of using rather
than for the job they currently hold.
Statement – II: Broad banding results into increase in salary grades and
ranges from 3 or 5 to 10 or more.
Codes:
15. Which one of the following is not a labor law related to wages?
(1) The Workmen‘s Compensation Act, 1923
283
(2) The Payment of Bonus Act, 1965
(3) The Payment of Wages Act, 1936
(4) The Minimum Wages Act, 1948
16.Match the items of List – I with the items of List – II:
a. Net present value i. Number of years required to recover the original cash
outlay invested in a project.
b. Payback period ii. It is the rate of return which equates the present value of
anticipated net cash flows with the initial outlay.
c. Internal rate of return iii. It is found out by dividing the average after-tax
profit by the average investment.
d. Accounting rate of return iv. It is the difference between the present value of
cash inflows and present value of cash outflows.
Codes:
abcd
(1) iv iii ii i
(2) iii i iv ii
(3) iii iv i ii
(4) iv i ii iii
17. An employee borrowed a 3 year loan of ` 10,000 at 9% from his employer

to buy a motorcycle. If employer requires three equal end-of-year repayments,
then the annual installment will be .
(1) Rs3, 633(2) Rs3, 951
(3) Rs3, 333 (4) Rs4, 233
18. Match the items of List – I with the items of List – II:
a. M.M. Hypothesiswithouttaxesi. The cost of debt and cost of equity are

assumed tobe independent to the capital structure.
284
b. Net operating incomeapproachii. In the absence of taxes a firm‘s market
value andthe cost of capital remain invariant to the capitalstructure changes.
c. M.M. Hypothesis undercorporatetaxesiii. The cost of equity is assumed to

increase linearlywith leverage.
d. Net income approach iv. The value of the firm will increase with debt due
tothe deductibility of interest charges for taxcomputations and the value of the
levered firm willbe higher than the unlevered firm.
Codes:
abcd
(1) ii iii iv i
(2) ii i iv iii
(3) i ii iii iv
(4) iii iv i ii
19.Explicit Resale Price Valuation method pre-supposes that an investor keeps

the share only for few years and eventually sells the shares. The value of the
share, therefore, depends upon which of the following?
Codes:
(1) (I) is true, but (II) is false.
(2) (I) is false, but (II) is true.
(3) Both (I) and (II) are true.
(4) Both (I) and (II) are false.
20. It is an act of acquiring effective control by one company over assets or

management of another company without any combination of companies?
285
21.Out of the following, identify the key constituents for performance
marketing of Holistic marketing dimensions:
(a) Customers
(b) Brand and Customer equity
(c) Employees
(d) Ethics
(e) Environment
(f) Sales revenue
(g) Financial community
Codes:
(1) (a), (b), (c) and (d) (2) (b), (d), (e) and (f)
(3) (c), (e), (f) and (g) (4) (a), (c), (f) and (g)
22. Which one of the following is a potential drawback of multibranding?
(1) The company‘s resources may be spread over too many brands.
(2) Consumers may become confused about the image of the main brand.
(3) An over-extended brand name might lose its specific meaning for
consumers.
(4) Different product features can appeal to consumers with different buying
motives.
23. When a firm improves the quality and increases the price of a product in
relation to a competitor making a price reduction, the firm is
.
(1) Moving its brand into a higher price-value position
(2) Changing its target market
(3) Moving its brand into a less competitive position
(4) Adversely positioning its product
24. Which one of the following explains “the knowledge and courtesy of
employees and their ability to convey trust and confidence”?
286
a. Rich-media ads i. online ads that appear between screen
b. Pop-ups ii. Display ads that use eye-catching techniques
such as float, fly, and snapback.
c. Interstitials iii. Ads that users can block through the use of
applications developed by web browser providers.
Codes:
abc
(1) i ii iii
(2) ii i iii
(3) ii iii i
(4) iii i ii
26. Statement – I: Operation research is the application of scientific methods to

the study of alternatives in a problem situation with a view to providing
qualitative basis for arriving at an optimum solution in terms of goal sought.
Codes:
a. PERT i. Strategies
b. CPM ii. Events
c. Game theory iii. Network
287
Codes:
a b c
(1) i ii iii
(2) ii iii i
(3) iii ii i
(4) iii i ii
28. Statement – I: – X-chart, np-chart and R-chart are the techniques used for
(4) Statement – I is incorrect while Statement – II correct.
29. Statement – I: When there are a large number of decision variables (more
than three) and constraints, iterative mathematical procedures like simplex
method can be used for product-mix decisions.
30. In the context of work study, an element is rated as 120% and the actual
288
31. Which of the following sentences are true?
(i) The classical approach to probability theory requires that the total number of
equally likely.
(ii) A marginal probability is also known as unconditional probability.
(iii) For three independent events, the joint probability of the three events,
P(ABC)= P(A) × P(B/A) × P(C/AB)
(iv) Two events are mutually exclusive, exhaustive and equally likely, the
Codes:
(1) (i), (ii), (iii) and (iv) are true.
(2) (iii) and (iv) are true.
(3) (i), (ii) and (iv) are true.
(4) (i) and (iii) are true.
of correct matching in connection with probability distributions:
d. np, √npq i. Normal Distribution
e. λ,√λ ii. Binomial Distribution
f. 0, 1 iii. Poisson Distribution

Codes:-
a b c
1. i ii iii
2. iii i ii
3. iii ii i
4. i iii ii
33. A researcher wants to test the significance of the differences of the average
performance of more than two sample groups drawn from a
289
normally distributed population, which one of the following hypothesis- testing
tests is appropriate?
of their correct matching with regard to correlation and regression analysis:
a. γxyσy
b. Σ(X – –X) (Y – –Y)
c. Σ(X – –X) (Y – –Y)
variable.
d. 1 – γ2
Codes:-
a b c d
1. i ii iii iv
2. ii i iv iii
3. iii ii iv i
4. iii iv i ii
a. Stock files that are placed in warehouse as a record i. Daily report
b. Process of managing goods in most sensible way ii. Intranet
c. Management information system iii. Master file
d. Log-in allowed to only internal people iv. Stock control
Codes:-
290
abcd
(1) iii iv i ii
(2) iv iii ii i
(3) iii i iv ii
(4) i ii iii iv
36.The highly competitive industries, particularly in the early stage of product
life cycle, follow which one of the following strategies?
from several plausible alternatives, which one of the following should the
strategist integrate in decision making?
in the industry might be a better move than starting-up a new venture.
to acquisition because of differences between cultures and shared valued.
Codes:
decline or in few cases, industry becomes inherently unattractive.
291
of competitiveness among firms becomes haphazard.
decrease as the relative price of substitute products decline.
Codes:
Codes:
abcd
(1) iv i ii iii
(2) i ii iii iv
(3) ii iii i iv
(4) iii iv ii i

Codes:
292
under KVIC iii. MDA
Codes:-
a b c
1. iii i ii
2. iii ii i
3. i iii ii
4. i ii iii
.
293
Codes:
following?

following?
(4) Welfare concept
294
making?
295
UGC NET PAPER II DECEMBER 2015
1. Which one of the following assumptions is not related to consumer behavior
1. Rationality
2. Diminishing marginal utility of money
3. Utility cardinally measurable
4. Maximization of satisfaction with limited money income
Code:-
1. Both the statements are correct.
2. Both the statements are incorrect.
3. Statement 1 is correct while Statement 2 is incorrect
4. Statement 1 is incorrect while Statement 2 is correct
3. Match the items of List I with the items of List II and find the correct combination: -
List I List II
(a) Perfect Competition (i) Aluminum and passenger cars
(b) Oligopoly (ii) Public Utilities like Telephone and
Electricity
(c) Monopoly (iii) manufacturing: T.V. Sets, Refrigerators
(d) Monopolistic Competition (iv) Farm Products: Grains
Code:-
1. (i) (ii) (iii) (iv)
2. (iv) (i) (ii) (iii)
296
3. (iii) (iv) (i) (ii)
4. (ii) (iii) (iv) (i)
Code:-
5. Which one of the following is not covered in macro-economic?
(1) Performance of the entire economy
(2) Price and output determination of a commodity
(3) Factors and forces of economic fluctuations
(4) Monetary and fiscal policies
6. Match the below mentioned aspects with their main behavioral
disciplines:
(a) Leadership and stress management (i) Psychology
(b) Group conflict management (ii) Anthropology
(c) Cross-cultural analysis (iii) Sociology and Psychology
(d) Power (iv) Political science
Codes:
a bcd
1. iv i ii iii
2. ii iii i iv
3. i iv ii iii
297
4. iv ii iii i
7.
_.
298
(1) Lawofreinforcement(3)Lawofreproduction
(2) Law of effect (4) Law of expectations
8. The principles by which the process of perceptual organization works was

first identified by Max Wertheimer in the year .
(1) 1918 (2) 1933 (3) 1924 (4) 1923
9. The leadership theory of describes that effective
group performance depends on the proper match between the leaders‟ style
if interacting with his subordinates and the degree to which the situation gives
control and influence to the leader.
(1) Iowa State Leadership Studies‘; Ronald Lippitt and Ralph K. White
(2) Managerial Grid‘; Blake and Mouton
(3) Trait Theory‘; Stodgill and Barnard
(4) Contingency Model‘; Fred Fiedler
10. When one individual or group wins at the expense of another individual or
group, it is termed as .
(1) Zero-sum conflict (3) Line-staff conflict
(2) Non-zero sum conflict (4) Formal-informal conflict
11. Which one of the following statements is not true in the case of Human
(3) It is proactive in nature (4) It consists of various sub-

systems
12. Match the items given in the ListI and ListII and choose the correct
option:-
ListIListII
a. Personnel replacement chart (i) A chart prepared for each position

in a company to show possible replacement candidates and their
qualifications
b. Job posting (ii) The ongoing process of
systematically identifying, assessing and developing organizational
leadership to enhance performance
299
c. Succession planning (iii) Company records showing
present performance and promotability of inside candidates for the
most important positions
d. Position replacement card(iv)Publicizing an open job to employees and
listing its attributes, like qualifications, supervisor, working schedule, etc.
Codes:-
(a)(b) (c) (d)
a. (ii) (i) (iii) (iv)

b. (iii) (i) (iv) (ii)
c. (iv) (ii) (i) (iii)
d. (iii) (iv) (i) (ii)
13. Which one of the following training methods is not a managerial „on- the-
job training method?
(1) Coaching (3) Job Rotation
(2) Action Learning (4) Management Games
14. to deal with employee indiscipline provides the offender

every opportunity to state his side of the case.
(1) Punitive approach (3) Humanistic approach
(2) HRD approach (4) Judicial approach
15. Which one of the following is a disadvantage of Critical Incident

Method as a tool of performance appraisal?
(1) Difficult to rate or rank employees relative to one another
(2) Time - consuming
(3) Can cause disagreements among employees and may be unfair if all
employees are, in fact, excellent
(4) Employee‘s appraisal results depend on employer‘s choice of cut-off points
16.If raw materials are in store for 2 months, processing time 2½ months,
finished goods remain in store for 15 days, debtors are allowed 60 days‟
300
credit and credit received from suppliers of raw material is one month, the operating
cycle period is:
17. Which of the following is not general disclosure requirement under

accounting standard-14?
(1) Name and nature of Business
(2) Description and number of shares issued
(3) Accounting method followed
(4)Particulars of scheme sanctioned
18. Under the Modified Accelerated Cost Recovery System (MACRS) an asset
in the “5 year property class” would typically be depreciated over how many
years?
19. According to the concept of financial signaling, management behavior

results in new debt issues being regarded as “ news” by
investors.
20. The Exchange of interest and/or principal payment between two parties is
called:
21. From the following set of information, which combination is correct to

define the process of perception in order to understand consumer behavior?
(a) Selective Attention (c) Selective Retention
(b) Selective Distortion (d) Selective Apprehension
Code:
(1) Only (a) and (d) are correct (3) Only (b), (c) and (d) are correct
(2)Only (a), (b) and (d) are correct (4) only (a), (b) and (c) are correct
301
22. When the company‟s Salesperson contacts the customer from time to time
with Suggestions about improved uses of the product or additional new
range of products, then it is called as:
(1) Proactive Marketing (3) Reactive Marketing
(2) Accountable Marketing(4) Relationship Marketing
23. A state of demand where major part of the market dislikes the product and
may even pay a price to avoid it, may be called as:
(1) Declining Demand (3) Negative Demand
(2) Overfull Demand (4) Distractive Demand
24. When the Companies pay less attention to its own costs or demands and
bases its price largely on competitors‟ prices, then it is known as:
(1) Value pricing (3) Image pricing
(2) Going rate pricing (4) Psychological pricing
25. from the given columns which of the combinations best describe the
concepts of product hierarchy?
(a) Need family
(b) Product family
(c) Product class
(d) Product line
(i) The core need that underlines the existence of a product family
(ii) Group of items within a product line that share one of several possible
forms of the product
(iii) Group of products within the product family recognized as having a
certain functional coherence
(iv) All the product classes that can satisfy a core need with reasonable
effectiveness
Code:
(1) Only (a) - (i), (b) - (iv) and (c) - (iii) are correct
(2) Only (a) - (i), (b) - (iii) and (c) - (iv) are correct
(3) Only (b) - (iv), (c) - (iii) and (d) - (ii) are correct
(4) (a) - (i), (b) - (iii), (c) - (ii) and (d) - (iv) are correct
26. An input (such as variable cost per unit or fixed cost) for a model is an
example of a(n) ?
(1) Stochastic variable (3) Algorithm
302
(2) Decision variable (4) Parameter
27. Match the items of List I and List II and indicate the correct code: List
I List II
(a) Capacity planning (i) Setting policy guidelines and
procedural details of making a watch
(b) Quality Management (ii) the steering of the cars loaded in trucks
reaches the assembly line every morning and evening
(c) Process Design (iii) Establishing rules and policies of which tablets
are to be accepted and others not to be
(d) Location and Layout of (iv) A hospital can largely serve 500
patients at any time facilities
Code:
(a) (b) (c) (d)
(1) (iv) (iii) (i) (ii)
(2) (iv) (i) (iii) (ii)
(3) (ii) (iii) (i) (iv)
(4) (ii) (i) (iii) (iv)
28. Car enters the drive-through of a fast food restaurant to place an order, and
then it proceeds to pay for the food, and pick up the order. This is an example
of:
29. A manufacturer is considering five alternative locations for setting up its
factory. Using the information given in the table obtain a ranking and tell the
best location for setting the factory?
Table:
Factors Relativ Locatio Locatio Locatio Locatio Locatio
e n 1 n n n n
Weight 2 3 4 5
Availability 0.28 20 40 55 35 60
303
of
Infrastructur
e
Size of 0.18 30 30 80 60 40
Market
Industrial 0.15 80 30 50 60 50
Relation
Tax Benefits 0.09 80 20 20 20 10
Availability 0.09 70 70 50 50 45
of cheap
Labor
Nearness to 0.20 20 40 60 50 90
port
Code:
(1) Location 2 (3) Location 4
(2) Location 3 (4) Location 1 and Location 5
30. If the project completion time is normally distributed and the due date for
the project is greater than the expected completion time, then the probability
that the project will be finished by the due date is:
(1) Undeterminable without more information
(2) less than 0.50
(3) Equal to 0.50
(4) Greater than 0.50
31.Match the items of List – I with those of List – II and choose the correct
code:
List – I
(a) The probability of two events occurring together or in succession
(b) The probability of occurring one event given that another event has
occurred
(c) The probability of occurring a single event
(d) The probability revised in the light of additional information
List – II
304
i. Marginal probability
ii.Posterior probability
iii. Subjective probability
iv. Joint probability
v. Conditional probability
Code:-
A b c d
1. iv v i iii
2. v iv ii iii
3. v iv iii i
4. iv v i ii
32. Consider the following statements relating to correlation and regression
analysis:
Statement I: Correlation is independent of change of scale, but not of origin
Statement II: Correlation denotes co-variability between the variables
Statement III: Regression is a relative measure of relationship between variables
Statement IV: Regression is independent of change of origin but not of scale
(1) Statements I, II and IV are correct
(2) Statements II, III and IV are correct
(3) Statements II and III are correct
(4) Statements II and IV are correct
33. Which of the following is not a technology driver for an information
system?
34. NegandhiEstafen‟ is recognized as a good model for the analysis of:
(1) Organizational effectiveness
305
(2) Management effectiveness
(3) Organizational growth
(4) Organization behavior
35. A self-contained internet program designed to be used in a specific
environment is:
36.A company manages multiple strategies for it‟s multiple markets and multiple
products through which one of the following?
(1) Strategic Planners (3) Strategic Windows
(b) Product Adaptation Strategy(ii) Perceived and demonstrable superior

products

Code:
a b c d
1. iii ii i iv
2. ii iii iv i
3. i ii iii iv
4. ii iii i iv
38. Only diversified company with a balanced portfolio can use its strengths to
truly capitalize on its growth opportunities. Hence the balanced portfolio
contains:
306
39. Porter‟s Generic Strategies identified three basic categories of strategies
to include which one of the following combinations?
(3) Specific strategic issues, vertical integration strategies and supply
strategy
40. The stages of corporate development provide a way for the strategic
manager to analyze:
sickness?
Code:
42. Statement (I): - “Motivation is a continuous, complex and dynamic
process”.
Statement (II):- “As compared to other industries, extra motivation is required
in service sector industries”.
307
43. Assertion (A):- The function of entrepreneurs is to reform or revolutionize
the pattern of production by exploiting an invention or, more generally, an
untried technological possibility for producing a new commodity or producing
an old one in a new way.
Reasoning (R): - Lack of innovations will usually reduce the life span of a
product and/or service.
Code:
(1) Assertion (A) and Reasoning (R), both, are correct, and (R) is correct
explanation of (A).
(2) Assertion (A) and Reasoning (R), both, are correct, but (R) is not right
explanation of (A).
44. A business idea becomes a good business opportunity when it covers which
four of the following?
Code:
(1) (a), (b), (d) and (e) (3) (a), (d), (e) and (f)
(2) (a), (b), (e) and (f) (4) (b), (c), (e) and (f)
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Code:
(1) (a), (b), (c) and (d)
(2) (a), (b), (c) and (e)
(3) (a), (b), (c) and (f)
(4) (a), (b), (d) and (f)
assessment of and reporting in some meaningful, definable domain of the
company‟s activities that have social impacts.
Reasons (R): The Companies Act 2013 has accorded statutory recognition of
the social responsibility of a corporate entity and gives option to provide a
percentage of profit for the purpose as per discretion of the board.
Code:
(1) Both (A) and (R) are correct, and (R) is the right explanation of (A).

(1) The managers should be open to share his/her corporate secrets, individual
traits with external agencies.
(2) The managers be free and open to share his individual knowledge and
experience for community‘s gain.
(3) A person‘s action is ethical only if that person is willing for that same action
to be taken by everyone who is in a similar situation.
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(3) It focuses on purpose of each action and judges the consequences of an

action.
49. Assertion (A): Deontology is duty-based ethics. It is an approach to ethics

that addresses whether the motives behind certain action are right or wrong.
Reason (R):Deontology focuses on whether the results of the actions are right
or wrong.
Code:
50. Assertion (A) : Rules notified by the Ministry of Corporate Affairs (MCA)
Sec. 149 of the Companies Act mandates that a listed company having a paid up
share capital of Rs100 crore or more shall appoint at least one woman director
on its board.
Reasons (R):The corporate entities wanted to enhance gender equality and

woman empowerment in corporate governance and company administration.
Code:
310
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UGC NET PAPER II JUNE 2015
1. If the demand for using the Noida express way is given by:
Q= 40,000-2500P
Where Q is the number of users (vehicles) and P is the amount of toll collected
per unit who uses the express way. In light of this information which of the
following is true:
(1) At P=Rs 6 and Q=14,000; demand is price inelastic.
(2) At P=Rs7 and Q=16,500; demand is unitary elastic.
(3) At P=Rs4 and Q=9,500, demand is price elastic.
2. If a 100% scale-efficient plant has 92% technical efficiency and 88.5%
allocative-efficiency, then its overall efficiency will be:
(1) 88.5% (2) 90.25% (3) 93.0% (4) 81.42%
3. The market share data for an industry, comprising five companies, is given
below:
A 35
B 25
C 18
D 12
E 10
This industry‘s three-firm Herfindahl-Hirschman index shall be:
(1) 0.234 (2) 0.217 (3) 0.151 (4) 0.0175
4. For economy which consists of single automobile maker and that in year
2014, 30,000 vehicles are produced with an average price of ` 5 lakh. For this
economy what would be the increase in the nominal GDP for 2015 compared
with 2014 with the 4% greater automobile production and 8% inflation.
(1) 4.0% (2) 12.0% (3) 6.0% (4) 12.32%
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5. Demand policies targeted to reduce the unemployment become
ineffective in presence of the following:
(1) Vertical Phillips curve
(2) Money illusion and ignorance among workers
(3) Horizontal Phillips curve
(4) None of the above
6. An individual‟s involvement with, satisfaction and enthusiasm for, the

work he does, is known as:
(1) Employee engagement (3) Job satisfaction
(2) Job involvement (4) Organizational commitment
7. Which of the following is not perceived as the basic element of motivation?
8. A theory of motivation that is concerned with the beneficial effects of
intrinsic motivation and the harmful effects of extrinsic motivation is termed as:
(1) Cognitive Evaluation Theory (3) Self-determination Theory
(2) Self-efficiency Theory (4) Two-factor Theory
9. Match the items of List I with those of List II.
List I List II
(a) Anthropology (i) Attitude change
(b) Psychology (ii) Attitude measurement
(c) Social psychology (iii) Conflict
(d) Sociology (iv) Organizational culture
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Codes:
(a) (b) (c) (d)
(1) (i) (ii) (iii) (iv

(2) (iv) (ii) (i) (iii)
(3) (iv) (ii) (iii) (i)
(4) (ii) (iv) (iii) (i)
10. A relatively stable set of characteristics that influence an individual‟s

behavior is known as:
11. Assertion (A): The more differentiated the HR environment, the more

12. Which one of the following is a type of interview where a series of job-
related questions are asked that focus on how the candidate would behave in a
given situation?
(1) Behavioral interview (3) Situational interview
(2) Job-related interview (4) Structured interview
13. Consider the following statements:
(a) Sensitivity training was developed by Kurt Lewin
(b) In-basket exercise is a simulated training method
(c) Depth interview is also known as Directive Interview
(d) Job evaluation is carried out for promoting job satisfaction
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Which of the above statements are true?
(1) Only (a) and (c) (3) (a), (b) and (c)
(2) Only (a) and (b) (4) (b), (c) and (d)
14. Behaviorally Anchored Rating Scale (BARS) consists of the following

steps:
(a) Reallocate incidents
(b) Develop performance dimensions
(c) Generate critical incidents
(d) Develop final statements
(1) (a), (b), (c), (d) (3) (c), (b), (a), (d)
(2) (b), (c), (a), (d) (4) (a), (c), (b), (d)
15. Consider the following elements:
Which of these are not the elements of John Dunlop‟s Framework ofIndustrial
Relatives System?
16. State the price of the share for the year t, if the rate of growth of the firm is
10%, EPS and DPS for the year t11, are ` 3 and ` 2 respectively and the
investors‟ required rate of return is 20%.
(1) Rs30 (2) Rs20 (3) Rs25 (4) Rs10
17. In which of the following appraisal criteria of capital budgeting, the use of
varying opportunity cost of capital as a discount factor is possible?
(a) NPV (b) IRR (c) Pay-back Period (d) ARR
(1) Only (a) is correct. (3) (b) and (d) both are correct.
(2) (a) and (b) both are correct. (4) Only (c) is correct.
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18. According to the CAPM model, the cost of equity is represented by:
(1) Rm1 (Rm2Rf) bj (3) bj1(Rm2Rf)Rm
(2) Rf1(Rm2Rf)bj (4) Rm1Rf1bj
Where R indicates market rate of return, R indicates risk free rate of return and
b indicates beta of stock j
19. Anticipated annual dividend divided by the market price of the stock is
referred as:
(1) Dividend Pay-out (3) Return on Equity
(2) Dividend yield (4) Regular dividend
20. If the existing shareholder does not exercise his/her right or does not sell
the right entitlement:
(1) his/her wealth will remain unaffected
(2) his/her wealth will increase
(3) his/her wealth will decrease
(4) his/her wealth may increase or decrease
21. What are the four main components of holistic marketing?

(1) Integrated Marketing, Internal Marketing, Product Positioning and
(2) Integrated Marketing, Relationship Marketing, Social Marketing and
(3) Relationship Marketing, Integrated Marketing, Internal Marketing and
Social Marketing
22. Which of the following category of goods and services is most likely to
require an aggressive use of the selling concept?
(1) Complementary Goods (3) Specialty Goods
(2) Luxury Goods (4) Unsought Goods
23. The type of marketing that is the most recent to emerge is:
(1) Person marketing (3) Services marketing
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(2) Product marketing (4) Social marketing
24. According to the theory, marketers can enhance demand
for a product by associating it with strong drives, using motivating cues and
providing positive re-enforcement.
(1) Demand theory (3) Psychological theory
(2) Learning theory (4) Two-factors theory
25. The most scientifically valid research is:

(1) Experimental Research (3) Focus-Group Research
(2) Observation Research (4) Survey Research
26. Which of the following statements is not correct?
(1) Product Layout generally has continuous and Mass Production, mainly
assembly function.
(2) Process Layout generally has Intermittent, Job-Shop, Batch Production,
mainly fabrication function.
(3) Product Layout usually has general purpose equipments.
(4) Process Layout is generally driven by fluctuating demand.
27. Six-SIGMA quality indicates:

(1) 2.4 defects per thousand (3) 3.4 defects per thousand
28. A manufacturing firm has four work stations, A, B, C and D in series with
individual capacity of processing 450, 390, 360 and 400 units per day
respectively and the actual output of the firm is 306 units per day. The system
capacity and system efficiency of the firm shall respectively be:
(1) 400 and 100% (2) 450 and 120%
(3) 360 and 85% (4) 390 and 95%
29. In the simplex method of solving an LP Problem, the product-mix column
of the initial solution contains:
(1) Artificial variables only (3) Slack and artificial variables only
(2) Slack variables only (4) Real variables only
30. If the optimal solution of an LP Problem is degenerate then:
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(1) The problem has multiple optimal solutions
(2) The solution is not feasible
(3) The solution is useless to the manager
31. If your score in an exam was 80, with a mean of 60, what would be the
(1) 1.33
(2) 1.25
(3) 1.52
(4) 1.72
32. Spurious relationship between two variables refers to:
(3) Relationship happens only due to third variable which is common to both
the variables.
33. In a medical test, where the null hypothesis is: „The patient does not have
the disease‟ and the alternative hypothesis is: „ the patient has the disease‟.
Suppose a patient has a disease and needs treatment. In the hypothesis testing
process, which of the following errors is more serious than the others?
(2) Type - II error (4)r - error
34. Decision support system does not use:
(3) File server
35. Give the correct order of the stages in System Development.
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(1) Testing---->Programming---->Systems----->Design---->Systems---->
Analysis---->Conversion---->Production and Maintenance
(4) ProductionandMaintenance---->Testing---->Conversion-----
>Programming ---->Systems Design---->Systems Analysis
(1) Balanced score cards always report using the same time periods as the
financial accounting system.
(3) Organizations sometimes use a ―traffic light‖ system on their balanced score
card to help them priorities their activities.
37. What metaphor is used to describe the competitive space where product are
not yet well defined, competitors are not well-organized and the market is
relatively unknown?
(1) Blue Lagoon
(2) Blue Ocean
(3) Red Sea
(4) Red Ocean
(1) Differentiation (Best Value). Differentiation (Low Cost), Cost Leadership
(Large), Cost Leadership (Small), Focus
(2) Focus (Large), Focus (Small), Cost Leadership (Small), Cost Leadership
(Large), Differentiation
(3) Cost Leadership (Low Cost), Cost Leadership (Best Value),
Differentiation, Focus (Low Cost), Focus (Best Value)
(4) Cost Leadership (Large), Cost Leadership (Small), Differentiation
(Large), Differentiation (Small), Focus
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(2) Deciding whether the activity should be performed within the organization
or by a different firm.
(3) Deciding whether to locate operation in the home country or in a foreign
location.
(4) Deciding whether to share certain activities across different products and
markets.
40. “Pepsi Co launched a hostile takeover of Pepsi Bottling Group after its
$ 4.2 billion offer was rejected”. Which strategy was used in this case?
(1) Market Penetration (3) Horizontal Integration
(2) Backward Integration (4) Forward Integration
41. Who viewed entrepreneur as a non-fixed income earner with known costs
of production but uncertain income and therefore, operating at a risk?
(1) Adam Smith(2) Richard Contillon
42. Which one of the following is not a major area of entrepreneurial
innovation as suggested by Joseph Schumpeter?
43. Which one of the following types of entrepreneurs are not proactive in
nature and does not respond much to changes in the environment?
44. SFURTI (Scheme of fund for regeneration of traditional industries) is
implemented by:
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45. According to the Tiwari Committee report, which one of the following is
not an internal cause of industrial sickness in India?
46. Which of the following is/are the component(s) of Ethics by field of
interest?
47. What is the right sequence of four psychological sub-processes in ethical

action given by James Rest?
48. A new approach Learning Model” which is helpful to strengthen the

decision making process was developed by:
(1) Arthur Rich
(2) Bob Garratt
(3) Christian Wolff
(4) Lord Keynes
49. Assertion (A): Corporate behavior towards stakeholders is an

important concept in practice and a central part of corporate Governance.
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322
1. In the market-oriented system, for the allocation of resources which one of
the following is the most appropriate conveyor of information?
2. A company supplies 20 units of a particular product per month, at a price of
Rs 10 per unit. If price elasticity of supply is 5, how many units would the
company supply at a price of Rs15?
(A) 50 (B) 70
(C) 40 (D) 5
3. Which characteristic is not likely to be a part of perfect competition?
4. Match the items given in List – I and List – II by considering which of the
following are macroeconomic issues and which microeconomic ones are:
a. The level of government revenue i. Microeconomic
b. The rate of inflation ii. Macroeconomic
c. The price of T.V. set
d. The amount saved last year by households
Codes: -
abcd
(A) ii i iii
(B) ii i ii i
(C) i ii iiii
(D) ii ii i ii
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5. In the recent years, world economy has witnessed the influence of
6. Rita, a young enthusiastic manager has joined an organization as a project
coordinator. The project head counsels her to socialize less with non-
management employees; whereas the product head tells her to learn more about
market issues. She should socialize more with the non- management employees.
Rita is confused, she is facing
7. List – I consists of Motivation theories and List – II consists of the
Motivation theorists. You have to match them and indicate the correct match as
per code:
a. Two-factor theory i. David McClelland
b. ERG theory ii. Fredrick Herzberg
c. Theory X and Theory Y iii. Douglas McGregor
d. Need theory iv. Clayton Alderfer
Codes:
abcd
(A) ii iv iii i
(B) i ii iii iv
(C) i iv ii iii
(D) iv iii ii i
8. The conflict over content and goals of the work is called
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9. theory of motivation ignores the inner state of the individual and
concentrates solely on what happens when he or she takes some action.
10. In the “Big Five” personality factors widely accepted personality traits are
mentioned. The trait of being dependable, organized, conforming and
persevering on tasks is called
11. Given below are four statements. Some of the statements are incorrect. You
have to choose the correct one.
(A) A satisfied employee is a motivated employee.
(B) Employees who are happy ―being around‖ are good contributors to the
organization.
(C) Motivated employees do not need engagement.
(D) Customer loyalty has been found to be positively correlated with employee
engagement.
12. The author of the book „The World is Flat: A Brief History of the Twenty
First Century‟ is
13. ESOP stands for and was developed by
(A) Employee Stock Ownership Plans; Wallace Forbes
(B) Employee Stock Ownership Programs; Louis Kelso
(C) Employee Stock Ownership Plans; Louis Kelso
(D) Employee Share Ownership Programs; Louis Kelso
14. Match items given in List – I, with those in List – II:
a. Predictive analytics to help
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anticipate the result of HR
strategy i. Job Specification
b. Statement of purpose, scope,
duties, task and
responsibilities of job ii. Ernest J. McCormick
c. Position Analysis
Questionnaire iii. Job Description
d. Statement of qualifications and
qualities required of an
employee to be successful iv. Workforce Analytics
Codes:
abcd
(A) iv iii ii i
(B) i ii iii iv
(C) i iv ii iii
(D) ii iv i iii
a. Procedural Rules i. An interim or final determination of
any industrial dispute
b. Managerial Aspects ii. Terms and conditions of
employment and control on
c. Substantial Rules iii. Mechanism of dealing with
interpretation and implementation of
agreements
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d. Award iv. Assignment of work and adjustment of
workforce
Codes:
abcd
(A) iv ii i iii
(B) iii iv ii i
(C) i ii iii iv
(D) ii iii iv i
16. Consider the following two statements:
Statement I:Bond value would decline when the market rate of interest rises.
Statement II: There is a positive relationship between the value of a bond and
the interest rate. Select the correct code:
Codes:
(A) Statement I and Statement II both are correct.
(B) Statement I is correct, but Statement II is incorrect.
(C) Statement II is correct, but Statement I is incorrect.
(D) Statement I and Statement II both are incorrect.
17. Match the following techniques of capital budgeting given in List – I, with
one of the Characteristics given in List – II and select the correct code:
List – I
a. NPV
b. IRR
c. Profitability Index
d. Payback period
List – II
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i. Under certain circumstances its reciprocal is a good approximation of the rate
of return.
ii. Shareholder‟s wealth maximization
iii. Possibility of multiple outcomes in single calculation
iv. Measure of projects‟ relative profitability
Codes:
a b c d
(A) i ii iii iv
(B) ii iii iv i
(C) iii iv i ii
(D) iv I ii iii
18. In the case of redeemable debentures issued at discount and to be redeemed
at par, approximate cost of debenture (before tax adjustment) will be equal to
(A) Rate of interest
(B) Amount of interest divided by issue price
(C) Amount of interest divided by par value
(D) Amount of interest+ [par value – issue price]

Tenure of debenture
-----------------------------------------------------------------
19. While granting the term loan, if lending institution puts a condition to
reduce the debt equity ratio by issuing additional equity share-capital or
preference share capital, it is known as
(A) asset-related restrictive covenant
(B) Cash flow related restrictive covenant
(C) Control related restrictive covenant
328
(D) Liability related restrictive covenant
20. According to Lintner‟s model of corporate dividend behavior, the

dividend for the year„t‟ is dependent on:
I. earnings per share for the year t
II. Dividend per share for the year t-1
III. Adjustment rate
IV. Target pay-out ratio
V. market price of share
(A) I, II and III are correct.
(B) II, III, IV and V are correct.
(C) I, II, III and IV are correct.
(D) I, II, IV and V are correct.
21. Which of the following concepts holds that consumers prefer the
products which are easily available and are inexpensive?
22. is the added value endowed to a product or service.
(A) Brand equity (C) Brand loyalty
(B) Brand image (D) Brand preference
23. Match the items/persons included in List – I with the items in List – II and
indicate the correct pairing through codes given below:
a. CCI i. Consumer buying decision process
b. Cognitive dissonance ii. Marketing Myopia
c. Everett M. Rogers iii. Diffusion of Innovation
d. Theodore Levitt iv. iv. Predatory Pricing
329
Codes:-
a b c d
(A) iv iii ii i
(B) iii iv ii i
(C) i ii iv iii
(D) i iii ii
24. The step after „concept testing‟ in the new product development process is
(A) Business analysis(B) Marketing strategy development
25. When the total market expands, the usually gains the most.
(A) Market challenger
(B) Market leader
(C) Market follower
(D)Market niche
26. „Large output per unit of space‟ is an orientation of which type of plant
layout?
(A) Product layout
(B) Process layout
(C) Fixed-Position layout
(D) Cellular layout
27. Which of the following steps is the first step in production scheduling?
(A) Sequencing
(B) Loading
(C) Expediting
(D) Classifying
28. A defence equipment manufacturing company uses bolts at a constant rate

of 10000 kg per year. The bolt cost ` 80 per kg and the company estimates that it
costs Rs400 to place an order and the carrying cost of inventory is 10 percent
per year. How frequently should orders for bolts be placed?
(A) 5
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(B) 10
(C) 15
(D) 20
29. The number of allocated cells in the optimal solution table of a

transportation problem having m origins and n destinations is
(A) m + n – 1
(B) m + n –1 or more
(C) m + n –1 or less
(D) m + n
30. The co-efficient of artificial variable in a Maximization problem of LP is

(A) M
(B) –M
(C) 0
(D) 1
31. If p = 0.6 for a particular Bernoulli process, the calculation ( 8! ) (0.6)5

(0.4)3 indicates 5!*3!
32. Chebyshev‟s theorem provides that at least 89% of the values will lie
within ± 3 standard deviations from the mean for
33. How many degrees of freedom should be used to apply chi-square test
statistic on a contingency table, having 5 rows and 4 columns?
331
(A) 20
(B) 12
(C) 7
(D) 9
34. The and its alternative provide the ability to serve dynamic
content to browsers.
(B) Cryptography
35. Which is the most suitable domain extension for an Indian NGO to do e
business?
(A) .gov
(B) .com
(C) .org
(D) .us
36. At which level in the company should market-oriented strategic planning
begin?
(A) Corporate level
(B) SBU level
(A) A group of firms following the same strategy in a market is called a
‗strategic group‘.
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38. In India Proctor & Gamble (P & G) (Home products division) is following
the strategy of
(A) Cost leadership
(B) Differentiation
39. Today, mobile phones have many features such as camera, GPS,
Internet, music and videorecording. This is an example of
40. An organization that is downsizing to reduce cost is implementing a
strategy of
(A) Growth
(B) Focus
(C) Renewal
(D) Stability
(A) Daniel Goleman
(D) Warren Buffet
(A) DhirubhaiAmbani
(B) Shiv Nadar
(C) K. Anji Reddy
(D) G.D. Birla
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43. Which of the following is not a possible route to market entry for a small
business owner/entrepreneur?
(A) Franchise
(D) Buy-out
44. The number of items which can be exclusively manufactured in the small
scale sector are
(A) 20 items
(B) 35 items
(C) 50 items
(D) 62 items
45. Which of the following is an external reason for the sickness of a small
business?
46. In view of competitive global economy, corporations are involved in cost
cutting, corporate restructuring, mergers and acquisitions and downsizing. All
these activities can be carried out successfully only if there is proper
(A) Business Ethics
(B) Ethical Audit
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Statement (B): Law represents a minimum set of standards for regulating

human behavior in society.
(C) Cyber Law
(D) E-commerce Law
a. Transparency i. All stakeholder groups have the

opportunity to maintain or improve their well-being.

c. Sustainability iii. Information freely available and

directly accessible to interested parties.
d. Accountability iv. The effect which action taken in

the present has upon the options available in the future.
Codes:-
abcd
(A) iii i iv ii
(B) i ii iii iv
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(C) ii iii i iv
(D) iii i ii iv
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1. In case the price (P), quantity (Q), and changes (Δ) are represented by
respective symbols given in the brackets, the price elasticity of demand (Ed) is
measured by
(A) Ed = ΔQ / PΔ
(B) Ed = (QΔ/Q) / (PΔ/P)
(C) Ed = ΔP/ΔQ
(D) Ed = (ΔP/P) / (ΔQ/Q)
2. Law of Diminishing Return applies when the gaps among the successive
(C) Increases (D) remains irregular
3. In case the demand elasticity under imperfect competition is unity, the
marginal revenue will be
(A) more than utility, but less than infinity.
(B) Equal to unity.
(C) less than unity, but more than zero.
(D) Equal to zero.
4. Rise in general price level along with declining output in the economy is
called
5. National income equilibrium is not at the level where
(A) Aggregate investment equals aggregate savings
(B) Aggregate expenditure equals aggregate income
(C) Inflationary and deflationarygaps are absent
(D) Aggregate consumption is constant
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6. Which of the following is a correct match?
(A) McClelland – ERG Theory
(B) Skinner – Reinforcement Theory
(C) Vroom – Equity Theory
(D) Locke – ExpectancyTheory
7. The study of gestures and body postures for their impact on
communication is known as
8. According to Organizational Culture Inventory (OCI), an organization in
which members are encouraged to work together in ways that meet higher order
human needs is classified as having a culture.
9. A matrix structure of organization
(A) Reinforces unity of command
(B) is inexpensive
(C) is easy to explain to the employees
(D) Gives to some employees more than one boss
10. Organizational development (OD) is a planned change plus
(A) Evaluation
(B) Intervention
(C) Ability for self-renewal
(D) Reinforcement
(Concept) (Term)
a. An ongoing and formalized effort that focuses on
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developing enriched and more capable workers i. Direction phase
b. A career development activity in which
the advancementpotentialofsubordinatesii. Careerdevelopment
c. A career development activity that focuses
on preparing people to fill executive positions iii.
Promotabilityforecast
d. Determining the type of career that
employees want and the steps they must take to realise
their career goals iv. Succession planning
Codes:
abcd
(A) i ii iii iv
(B) ii iii iv i
(C) ii iii i iv
(D) i iii ii iv
12. A formal explanation of the knowledge, skills, abilities, traits and other
characteristics necessary for effective job performance is known as
(A) Job Description
(B) Job Analysis
(C) Job Specification
(D) Job Enrichment
13. aims to reduce reliance on arbitrary methods of pay
determination by introducing an element of objectivity in the way jobs are compared.
(A) Performance appraisal
(B) Job evaluation
(C) Job enrichment
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(D) Attrition
a. The process of examining how
work creates or adds value to the
ongoing processesin a business i. Job Enrichment
b. A fundamental rethinking and
radical redesign of business processes
to achieve dramatic improvements in
c. The process of organising work
into the tasks required to perform a specific
task iii. Work flow analysis
d. The process of putting specialized
tasks back together so that one person is
responsible for producing a whole
product or an entire service iv. Business process reengineering
(BPR)
Codes:
abcd
(A) i ii iii iv
(B) ii i iv iii
(C) iii iv i ii
(D) iii iv ii i
15. The process of reorganizing a company‟s employees to improve their
efficiency is termed as
(A) Right sizing
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(B) Down sizing
(C) Retrenchment
(D) Lay-offs
16. The value of a bond with a given maturity period is
(A) Present value of maturity value of the bond
(B) Present value of annual interest plus present value of maturity value
(C) Total amount of interest plus the maturity value received
(D) Maturity value received
17. The capital budgeting appraisal criterion that is most appropriate in the
situation of capital rationing will be
(A) Payback period
(B) Internal Rate of Return
(C) Net present value
(D) Profitability index
18. For computation of cost of equity, arrange the following measures in the
ascending order of accuracy:
I. Capital Asset Pricing Model
II. Dividend-Price Ratio
III. Earning-Price Ratio
IV. Dividend-Price plus Growth Ratio
Codes:
(A) I ---> III ---> II ---> IV
(B) IV --->I --->III ---> II
(C) III ---> II ---> IV ---> I
(D) II ---> IV ---> I ---> III
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19. Match the items given in the two lists:
a. Debt securities without any explicit interest rate i. Floating Rate Bonds
b. Company issuing such bonds experiences less financial distress ii. Zero-
coupon bonds
c. Coupon rate quoted as mark-up on the given rate iii. Income Bonds
Codes:
abc
(A) i ii iii
(B) i iii ii
(C) ii iii i
(D) iii Iii
20. Which one of the following types of working capital is financial through a
portion of long-term funds?
(A) Gross working capital
(B) Net working capital
(C) Floating working capital
(D) Regular working capital
21. In the model of consumer adoption of new products developed by

Everitt M. Rogers, the first category of people to adopt a new product is
called:-
(A) Early Adopters
(B) Initial Adopters
(C) First users
(D) Innovators
22. PepsiCo used to enter the Indian market in the early 1980s.
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23. Pricing decisions are most complex at which stage of the product life
cycle?
24. Branding seeks

(A) To differentiate the product
(B) To charge differential price
(C) To sell the product in different countries
(D) To give attractive name to a product
25. The most widely used method of collecting the primary data is
26. If the EOQ for an item of inventory in a firm is 1000 units, the estimated
demand for the term next year gets doubled, what shall be the revised EOQ
next year, all other relevant costs remaining unchanged ? (A) 1000
(B) 1414
(C) 2000
27. From the following two statements, choose the correct answer:
Statement I : A person can have one utility curve for one situation and a
quite different one for the next situation.
Statement II : Business executive with a linear utility curve can effectively use
Codes:
(A) Statement I is true, but II is false.
(B) Statement I is false, but II is true.
(C) Both the Statements I and II are true.
(D) Both the statements I and II are false.
343
28. Which of the following is not included in the Five-p model of
transformation organization used in the Production and Operations
Management?
(A) People
(B) Plant
(C) Production
(D) Programmes
29. Demand forecasting through “Survey of Buyer‟s Intentions” is not

suited for which type of products?
(A) ‗Convenience goods‘
(B) Industrial products
(C) New products
(D) Consumer durables
30. The names of certain reputed authors and their works are listed in the
following lists. Match the names and their works in the correct order:
a. Elwood S. Buffa and Rakesh K. Sarin i. A Behavioral Theory of the Firm
b. Richard M. Cyert and James E March ii. Introduction to operations

research
c. Martin K. Starr and D.W. Miller iii. Production and Operations

Management
d. J.M. Juran iv. Quality Control Handbook
e. Hillier and Leiberman v. Inventory Control: Theory and

Practice
Codes:
abcde
(A) i ii iii iv v
(B) ii iii iv v i
(C) iii iv i ii v
(D) iii i v iv ii
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31. What is the probability of a value, chosen from a population, is less than its
median?
(A) 1.0 (B) 0.75
(C) 0.50 (D) 0.25
32. If in a given Binomial distribution with „n‟ fixed and P < 0.5, then
33. What separates the physical aspects of data storage from the logical aspects
of data representation?
34. The components of E-business model are
i. Web Server
ii. Web Master
iii. Internet
Codes:
(A) i, ii, iii & iv
(B) i, ii & iii
(C) i & iii only
(D) iii only
35. The simple probability of the occurrence of an event is called the
345

ii. Liquidity risk is the risk onaccount of the mismatches ofcash inflow and
outflow in afirm.
iii. Basic risk is the risk in a firmowing to the differences in theindex to which
financial assetsand liabilities are tied up.
iv. Forward rate agreement is acontract where a borrower /lender locks the
interest rateand protects itself from the losson account of change in thefuture
interest rate.
Codes:
(A) i and ii
(B) ii and iii
(C) iii and iv
37. Which of the following facts are notcorrect in the context of India‟s
relations with the WTO?
i. India has been the founder member of the GATT.
ii. India has agreed to abide by the arrangement on the intellectual property
rights.
iii. Under the trade-related investment measures, India has already notified its
stand.
iv. India has agreed to allow entry to Foreign Service providers.
v. The Indian government has amended the Civil Procedure
Codes:
346
39. Match the theories of Foreign Direct Investment with their
contributors:
Codes:
abcd
(A) i ii iii iv
(B) iv iii i ii
(C) iii ii iv i
(D) i ii iv iii
40. Assertion (A): The laws regarding patents and trademark are
ineffective in many countries.
Reasoning (R): There are cases when a government does not abide by the
rulings of theInternational Court of Justice.
347
Ahmedabad, revealed that the possession of competencies is necessary for
superior performance of the entrepreneurs. The study was conducted under the
guidance of
(C) James J. Berna
(D) P.L. Tandon
42. is considered as a creative capital which performs economic
functions different from other investment vehicles, which primarily serve as the
expansion capital.
(A) Equity Capital
(B) Fixed Capital
(C) Venture Capital
(D) Share Capital
tasks.
(A) Quality circle
(B) Bench marking
(C) Strategy
(D) Outsourcing
sickness?
348
46. Assertion (A): Ethical relativism means that there are universal standards
of human behavior.
Reasoning (R): Ethical behavior is primarily personal behavior conforming to

standards of morality.
(A) 15 August, 2000
(B) 26 August, 2003

49. Corporate governance mechanism should ensure that corporate

executive make strategic decisions that serve the entire group of
349
(C) Suppliers
(D) Shareholders
350
1. The Marshallian utility analysis is based on a less valid assumption of
(A) Cardinal measurement of utility

(B) Constant marginal utility of money
(C) Diminishing marginal utility of goods
(D) Additivity of the utility
2. An appropriate pricing strategy for a new product to be introduced in the
market will be
(A) Average/Marginal cost-plus pricing
(B) Skimming/Penetrating pricing
(C) Product-line pricing
(D) Differential pricing
3. Economic capacity of a plant represents the firm‟s capability for
(A) Maximum physical output
(B) Maximum marginal output
(C) Break-even level of output and sale
(D) Output that equates average and marginal costs
4. Multi-stage approach to product pricing in a firm involves
considerations for setting the price as follows:
i. Selection of firm‟s objective
ii. Composition of marketing-mix
iii. Selection of target market
iv. Selection of pricing policy and strategy
(A) iv → ii → i → iii
(B) iii → i → ii → iv
(C) ii → iv → iii → i
351
(D) i → iii → ii → iv
5. Which one of the following practices is not sought to be regulated under the
(A) Sales of defective goods
(B) Supply of services having some deficiency
(C) Misleading advertisements
(D) Goods supplied free of charge
6. The leadership prototype
(A) is useful primarily for selection and training of employees
(B) uses LPC (Least Preferred Co-worker) as an important component
(C) depicts the image of a model leader
(D) emphasizes leadership development
7. Which is not a perceptual process stage?
(A) Attention/selection
(B) Interpretation
(C) Follow-through
(D) Retrieval
8. Which statement is correct?
(A) Goals act as the set of constraints that an organization must satisfy.
(B) Deterministic goals specify the end or direction towards which the
organization applies its efforts, and they can be fairly determined.
(C) Goals may be categorized as deterministic and constraint goals.
9. According to Fiedler‟s Contingency Model of Leadership, which one of the
following is not a situational variable?
(A) Leader-Member relations
(B) Task structure
(C) Position power
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(D) Maturity of followers
10. Which is not a centralized communication network system?
(A) Wheel Network
(B) Y-shaped Network
(C) Circle Network
(D) Chain Network
11. Why is „procedural justice‟ important in the context of the management of
misconduct?
(A) It reflects on the integrity of HR professionals.
(B) It ensures that individuals have a sense that they have been treated fairly.
(C) It reflects on the values and attitudes of top management.
(D) It protects the interest of daily wage earners.
12. To be effective a points-based rating system requires:
(A) Close management control
(B) Comprehensive, reliable and consistent information
(C) Objectivity in assessments
(D) 360° assessment
13. Too much of reliance on internal recruitment can result in
(A) Reduced job performance
(B) High labor turnover
(C) Internal conflict
(D) Poor group dynamics
14. The concept of stagnation in the context of HRM means:
(A) Lack of appropriate selection criteria.
(B) HR staff having very limited experience outside the HR functions.
353
(C) Over-reliance on the internal labor market to fill new positions.
(D) Lack of integration of recruitment and selection into the wider human
resource function.
15. Negotiations are an important aspect of the collective-bargaining

process. What do they ensure?
(A) That conflict is contained within manageable boundaries.
(B) That there is an agreement between all parties involved.
(C) That conflict is always resolved.
(D) It achieves a set of lasting agreements.
16. If the going rate of interest is above the coupon rate, the bond will sell :
(A) At a Premium
(B) At a Discount
(C) At Par
17. In case the sales or project‟s investment deviates from expected ones, it
needs
(A) Optimistic scenario analysis
(B) Sensitivity analysis
(C) Simulation analysis
(D) Financial break-even analysis
18. „Trading on equity‟ refers to
(A) Optimum capital structure
(B) Appropriate capitalization
(C) Capital gearing
(D) Watered capital
354
19. Match the items of two lists, giving the correct code:
a. Dividend Capitalization Model i. John Lintner
b. Dividend Relevance Model ii. James E. Walter
c. Dividend Irrelevance Model iii. Myron Gordon
d. Dividend Payout Model iv. Modigliani & Miller
Codes:
a b c d
(A) ii i iii iv
(B) i iv ii iii
(C) iii ii iv i
(D) iv iii i ii
20. The excess payment by the new company to the amalgamating companies
for the appraised value of the assets and liabilities taken over is accounted as
(A) Capital Reserve
(B) Bonus Share Capital
(C) Goodwill
(D) Amount paid for the acquisition of the brand
21. Which of the following is direct marketing?

(A) Face to-face marketing
(B) Catalogue marketing
(C) Direct mailing
(D) Test marketing
22. In marketing research, primary data can be collected through

(A) Observational Method
(B) Survey Method
355
(C) Experimental Method
23. Holistic marketing does not include

(A) Internal Marketing
(B) Integrated Marketing
(C) Performance Marketing
(D) Financial Marketing
24. Which of the following is not a distinctive characteristic of services?

25. To remain dominant, a market leader looks for

(A) Ways to expand total market demand
(B) Attempting to protect its current share
(C) Increasing its market share
26. Consider the names of organizations/persons listed in List – I and their

a. Bureau ofService quality Standards (BIS) i. Measurement of service
qualityIndian
B.ZeithmalParasuraman and Berry ii. Measurement of quality of
educational service
c. ISO iii. Standardization and quality
control of manufactured goods
d. National Assessment and Accreditation Council iv. Quality marketing
and Certification of standards
Codes:-
a b c d
(A) i ii iii iv
356
(B) ii iii iv i
(C) iv ii iii i
(D) iii iv i ii
27. In Linear Programming, which one of the following cases is not a type of
sensitivity analysis?
28. The upper control limit for an X chart, with n = 9, Mean = 26.7, R = 5.3 and
d2 = 2.970, is
(A) 24.9 (B) 26.11 (C) 27.29 (D) 28.48
29. The additional cost of shortening an activity by one unit of time is
30. Which method is least suited for forecasting the demand of a new product?
(A) Survey of Buyers‘ Intentions (B) Composite Opinions of Sales
Force
31. In a hypothesis test, α = 0.05 and β = 0.10, the power of the test is
(A) 0.10 (B) 0.90
(C) 0.95 (D) 0.15
32. When performing a Chi-square hypothesis test, what happens when
expected frequencies in several cells are too small?
357
33. Under which situation, the method of „experimentation, modeling and
sensitivity analysis‟ is used to determine the information requirements of the
management?
(B) High Risk
(C) Low Risk
(D) Certainty
34. The technique(s) that can be used in data mining is/are:
(B) Decision tree
(C) Neural networks
35. A Binomial distribution may be approximated by a Poisson
distribution, if:
Codes:
(A) i, ii and iii
(B) ii only
(C) iii and iv only
(D) iv only
36. Double taxation relief is normally provided by the country in which the
parent company has its legal residence. It is provided in the following modes:
358
v. Tax subsidy
Codes:
(B) i, ii, iv and v
ii. The legal, economic, social and cultural environment varies from one
country to another.
iii. Different countries have different time lines and geographical
boundaries.
Codes:
(A) i, ii and iii
(B) ii, iii and iv
(C) i, ii and iv
(D) i and ii only
359
Codes:
abcd
(A) iv i iii ii
(B) iii i iv ii
(C) ii i iii iv
(D) iv i ii iii
39. In the context of International Business, whether an equal distribution of
income in the host country:
(D) Has a significant impact on the MNCs market segmentation strategy if the
economy is at the take-off stage.
40. Statement-I: Cost of retained earnings is included in the cost of equity in the
context of international business.
Statement-II: Interest rate swap and currency swap are used
interchangeably in international business.
41. Who said – “An entrepreneur always searches for change, responds to it and
exploit it as an opportunity.”?
(A) James Burna
(B) McClelland
360
(A) Uttar Pradesh
(B) Jammu & Kashmir
(C) Andhra Pradesh
(D) Gujarat
(A) iii iv i ii
(B) iv i iii ii
(C) iii iv ii i
(D) iv i ii iii
d. Marketing Plan iv. Exploring market
opportunity
Codes:
abcd
(A) i ii iii iv
(B) iv iii i ii
361
(C) iv iii ii i
(D) i ii iv iii
45. TePP stands for
(A) Business growth
(B) Customers
(C) Employees
(D) Shareholders
47 . Good governance in corporate sector depends upon
48. Corporate leaders in India in private sector are tempted by a very high target
of and the concerned employee has to achieve the target for promotion and
stability.
(A) Money making
(B) Business growth
(D) Profit
362
49. Corporate business ethics is norms and pattern that spring
from organizational view of good and bad, right and wrong.
(A) Social
(B) Behavioral
(C) Institutional
(D) Individual
50. Trade Union strike supporting a political cause and affecting

production activities is a problem related to
363
UGC NET PAPER II SEPTEMBER 2013
1. The sum of the value of all final goods and services produced within a
country and net factor income from abroad is termed as
2. If a firm raises Rs1,00,000 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
3. 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.
4. Statement I: Demand for a commodity refers to quantity of the commodity
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.
5. Match the items given in List-I with most suitable options given in List- II.
(a) Rate of discount which equates
(b)Ratio of present value of cash
364
(c) Percentage of annual net income
earned on average fund invested in a project. (iii) Profitability
Index
(d) Investment divided by annual net cash
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)
6. The process through which individuals attempt to determine the causes
behind others‟ behavior is known as
(A) Perception
(B) Attitude
(C) Attribution
(D) Social identity theory
7. 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
8. Annual Reports, Balance Sheets, Brochures and Advertisements in
(A) Influencing
(B) Image building
(C) Group building
(D) Credibility building
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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

behavioral 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
a. Delegating 1. A function of a situation wherein a leader is effective

only when the style used to influence and alter the situation is appropriate.
b. Situational Theory 2. Low nurturing and low regulating behavior.
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 forpeople and concern for production.
Codes:
abcd
(A) 1 2 3 4
366
(B) 2 1 4 3
(C) 3 2 4 1
(D) 4 3 1 2
11. On-the-job training methods are not based on
(A) Demonstration methods
(B) Interactive methods
(C) Vestibule Training methods
(D) Apprentice training method
12. 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.
13. 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

(C) Profit distribution under a profit sharing plan is used to fund employee
retirement plans.
14. Performance appraisal includes
(A) Check reviews done by the supervisors.
(B) Review his performance in relation to the objectives and other behaviors.
367
(C) Promote employees for self-appraisal.
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. Flexi time 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:
abcd
(A) 1 2 3 4
(B) 4 3 2 1
(C) 2 3 4 1
(D) 3 4 1 2
16. 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
368
17. 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
18. 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
19. 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.
a. Financial Statements 1. Check on Financial Activities
b. Administration of Tax 2. Reduction of Tax Liability
c. Internal Audit 3. Allocation of Fund
369
d. Budgeting 4. Income Statement
Codes:
abcd
(A) 1 2 3 4
(B) 4 3 2 1
(C) 4 2 1 3
(D) 2 3 4 1
21. A deliberate and careful choice of organization, product, price

promotion, place strategies and policies best define the concept of
(A) Marketing Mix
(B) Product Mix
(C) Market Penetration
(D) Market Segmentation
22. 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 satisfybuying needs.
23. 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.
24. 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.
370
(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
25.“Marketing concept is the recognition on the part of management that all
business decisions at the firm must be made in the light of customer needs and
wants, hence that all marketing activities must be under one supervision and
that all activities of a firm must be coordinated at the top in the light of market
requirements.”
Who said it?
(A) Lazo and Carton
(B) Schwartz G
(C) King RL
(D) C.P. McNamara
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
27. Statement I: Mean (X) chart do not give the desired result about process
variability.
371
(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.
28. Which one is not a part of control charts for attributes?
29. There are different phases in a Operations Research Project. They are
(A) (i), (ii), (iii)
(B) (iii), (i), (ii)
(C) (ii), (iii), (i)
(D) (iii), (ii), (i)
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.
31. A vendor can make a profit of Rs3,000 with a probability of 0.4 or make a
loss of Rs1,000 with a probability of 0.6. What is his expected profit?
(A) Rs600 (B) Rs800
(C) Rs1,000 (D) Rs500
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
372
(C) Cochran Q test
33. Match the items given in List-I with most appropriate options given in List-
II.
(a) Centroid
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)
34. Identify the window not associated with SPSS.
(A) Editor
(B) Syntax
(C) Output
(D) Format Cells
35. Match the items given in Column-A with the items given in Column-B.
373
Codes:
(a) (b) (c)
(A) (ii) (iii) (i)
(B) (iii) (ii) (i)
(C) (i) (ii) (iii)
(D) (ii) (i) (iii)
36. In BCG Matrix which division represents the organization‟s best long- run
(A) Question marks
(B) Stars
(C) Cash Cows
(D) Dogs
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
(B) SWOT Matrix, SPACE Matrix, BCG Matrix, the Internal- External (IE)
Matrix, and the Grand Strategy Matrix.
374
(C) Quantitative Strategic Planning Matrix (QSPM).
(D) EFE Matrix, the IFE Matrix and Quantitative Strategic Planning Matrix
(QSPM).
Term Explanation
a. Strategy 1. Enduring statements of purpose
that distinguish one business from other simple firms.
seeks to achieve.
d. Objectives 4. Means by which long term
objectives will be achieved.
Codes:
abcd
(A) 4 3 1 2
(B) 4 2 3 1
(C) 1 3 2 4
(D) 1 2 3 4
(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.
Codes:
(a) (b) (c) (d)
375
(A) i ii iii iv
(B) iv iii ii i
(C) ii iii iv i
(D) iii iv i ii
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
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
Codes:
abcd
(A) 1 3 2 4
376
(B) 1 2 3 4
(C) 4 3 2 1
(D) 4 2 3 1
tasks and functions.
(A) Quality circle
(B) Outsourcing
(C) Bench marking
(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)
46. Which of the following duties is not a general duty of directors of a
company?
(B) Duty of care

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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)
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(iii) Obtain consensus that the leaders are committed to creating value based
work place.
Codes:
379
1. 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
2. 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.
3.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.
4. 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)
380
(B) (ii) (iv) (iii) (i)
(C) (ii) (i) (iv) (iii)
(D) (ii) (i) (iii) (iv)
5. 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 himself
from a fallinginterest rate1. Interestrate collar
b. A borrower buys securities to protect himself
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 bcd
(A) 2 4 3 1
(B) 4 2 1 3
(C) 4 2 3 1
(D) 3 2 1 4
6. The form of learning in which people acquire new behaviors by
systematically observing the rewards and punishments given to others is
known as
(A) Operant conditioning
(B) Positive reinforcement
(C) Modeling
(D) Law of effect
7. Diffusion of routine information takes place through
(A) Downward Communication
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(B) Upward Communication
(C) Horizontal Communication
(D) External Communication
8. An integrated group of activities to bring about a change is known as
(A) Organization development
(B) Interventions
(C) OCTAPACE
(D) Collaborative culture
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

Codes :
abcd
(A) 1 2 3 4
(B) 4 3 2 1
(C) 3 1 4 2
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(D) 3 4 1 2
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:
abcd
(A) 1 2 3 4
(B) 4 1 2 3
(C) 3 4 1 2
(D) 2 3 4 1
11. Human resource planning system includes
(A) Human resource supply forecast
(B) Human resource inventory
(C) Corporate plan
12. Who among the following propounded the concept of collective

bargaining?
(A) Beatrice and Gompers
(B) Beatrice and Emerson
(C) Gompers and Emerson

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(D) Gautt and Gompers
13. 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.
14. Human Resource Management includes
5. Selection
(A) 1, 2, 3 and 4 (B) 1, 3, 4 and 5
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:
abcd
(A) 1 2 3 4
(B) 4 3 2 1
384
(C) 3 1 4 2
(D) 2 3 1 4
16. 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
17. 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
18. 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
19. 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.
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(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.
20. 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:
abcd
(A) 1 2 3 4
(B) 2 1 4 3
(C) 2 1 3 4
(D) 3 4 2 1
21. What kind of pricing strategy a firm should normally follow for marketing
electronic goods?
(A) Penetration pricing strategy
(B) Skimming pricing strategy
(C) Cost plus pricing strategy
Note:- The answer for the question is not given by UGC
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22. 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.
23. 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
24. Two statements are given below:
Statement – I: Product concept of marketing holds that consumers would favor
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.
(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.
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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:
abcd
(A) 1 2 3 4
(B) 2 3 4 1
(C) 3 4 1 2
(D) 4 3 2 1
26. Work measurement refers to
(A) The length of time it takes to complete a work task assigned to a specific
job.
(B) Improving work methods.
(C) Arrangement of machines according to operations.
(D) Planning the work and working for the plans.
27. Facility planning includes
(A) Determination of production capacity
(B) Determination of production facilities location
(C) Determination of the layout
(D) All the above
a. For fraction or proportion of defects 1. R-chart
b. For number of defects 2. C-chart
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c. For number of defects for unit 3. nP-Chart
d. For monitoring process variability 4. P-Chart
a b c d
(A) 1 2 3 4
(B) 4 3 2 1
(C) 2 1 4 3
(D) 3 4 1 2
29. Statement – I: One of the major causes of the industry for larger capacity is
the argument that large facilities facilitate greater economies of scale. But the
major concern for building big capacity is that funds will be tied up or scarcity
of funds.
(A) Both statements I & II are correct.
(B) Both statements I & II are false.
(C) Statement I is correct and II is false.
(D) Statement II is correct and I is false.
30. In a symmetrical distribution
31. From the following, identify the test which can be used both as parametric
and non-parametric?
(A) ‗t‘ test
(B) ‗F‘ test
32. Arrange the following in ascending order in the testing of hypothesis:
389
(iv) Decision
Codes:
33. Y = a + bX refers to
(A) Y = independent variable, a = slope of the line, b = Y intercept and X =
dependent variable
(B) Y = dependent variable, a = slope of the line, b = Y intercept and X =
(C) Y = independent variable, a = dependent variable, b = Y intercept and X =
slope of the line
(D) Y = dependent variable, a = Y intercept, b = slope of the line and X =
34. Select the most appropriate option from Column B against the items in
Column A:
Column A Column B
Codes:
abc
(A) 3 2 1
(B) 2 3 1
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(C) 1 2 3
(D) 2 1 3
35. According to Michael Porter, a strategy aims at producing products and
services considered unique industry wide and directed at consumers who are
relatively price-insensitive is known as
(A) Cost Leadership – Best Value
(B) Differentiation
(C) Focus – Low Cost
(D) Focus – Best Value
36. In context of Industry Analysis which matrix allows strategists to
summarize and evaluate economic, social, cultural, demographic,
environmental, political, governmental, legal, technological and competitive
information?
(A) EFE Matrix
(B) CPM Matrix
(C) BCG Matrix
(D) IFE Matrix
37. Which among the following best describes the process of gaining
competitive advantage in a firm?
(A) Strengths → Weaknesses →Distinctive Competencies → Competitive
Advantage
(B) Weaknesses → Strengths →Distinctive Advantages →Competitive
Advantages
(C) Weaknesses → Strengths →Distinctive Competencies →Competitive
Advantages
(D) Distinctive Competencies →Weaknesses → Strengths →Competitive
Advantages
38. According to Porter, the nature of competitiveness in a given industry can
be viewed as a composite of the following five forces:
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b. Divisional Structure 2. Smooth delegation of authority and
responsibility
Codes:
abcd
(A) 1 2 3 4
(B) 3 4 1 2
(C) 3 4 2 1
(D) 4 3 1 2
40. A sound business opportunity is theresult of appropriate interaction
between:
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41. “An entrepreneur always searches for change, responds to it and exploit it
as an opportunity.” Who said it?
(A) F.W. Taylor
(C) J.R. Tulsian
(D) Max Weber
43. Which is not the object of Entrepreneurship Development
Programmes?
b. Central Pulp and Paper Research Institute 2. Deals with pollution
control in Indian Tannerics
d. Electronic Service and Training Centre 4. Deals with training,
technical and consultancy services
Codes:
abcd
(A) 1 2 3 4
(B) 3 1 2 4
393
(C) 2 3 4 1
(D) 4 3 1 2
(A) Jockeying
(B) Balking
(C) Reneging
46. Which among the following is not correct with regards to Clause 49 of
SEBI Act?
(D) Power to borrow monies exceeding the aggregate of the paid-up capital of
the company and its free reserves.
48. The professional having high ranking and trained to uphold the highest
standard and effective operations, compliance and administration as corporate
governance, is known as
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(D) Shareholders
49. Governance is the system of values, policies and institutions by which a

society manages its economic, political and social affairs through interactions
within and among the state, civil society and private sector is defined by
(A) World Bank
(B) UNDP
Codes:
abcd
(A) 4 2 1 3
(B) 4 1 2 3
(C) 4 3 2 1
(D) 4 3 1 2
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1. The term Opportunity Cost refers to
(A) Variable Cost
(B) Short-run cost
(C) The cost forgone in favor of production of another product
(D) Cost related to an optimum level of production
2. If two commodities are complementary, then a rise in the price of one
commodity will induce
(A) A rise in the price of the other commodity
(B) An upward shift of demand curve
(C) No shift in demand for the other commodity
(D) A backward shift in demand for the other commodity
3. What is the characteristic of a purely competitive market?
(A) Large number of buyers and sellers
(B) A few sellers
(C) A few buyers
(D) Abnormal profit
4. Willingness to pay minus actual payment is called
(A) Consumer‘s surplus
(B) Producer‘s surplus
(C) Utility cost
(D) Supplier‘s surplus
5. Match List – I with List – II and select the correct answer using the codes
given below the lists:
a. Cost Function 1. Kinky Demand
Curve
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b. Supply Function 2. Isoquants
c. Production Function 3. Engineering Method
d. Oligopoly 4. Factor Prices
Codes:
abcd
(A) 3 4 2 1
(B) 4 3 1 2
(C) 3 2 1 4
(D) 1 2 3 4
6. When analyzing your business and its environment, it is useful to
carefully inspect
(A) Threats
(B) Opportunities
(C) Strengths and weaknesses
(A) Decreased competition
(B) New Trade Regulations
(C) Global Sales Potential
(D) Economies of Scale
8. Expectancy Theory of Motivation was propounded by
(A) Porter and Lawler
(B) McGregor
(C) Vroom
(D) J. Stacy Adams
9. Which one of the following is not a step in planning?

397
(A) Establishing objectives
(B) Developing premises
(C) Determining alternative courses
(D) Identifying needs of employees
10. Planning is looking ahead and control is
(A) Scanning environment
(B) Looking back
(C) Setting targets
(D) Defining objectives
11. Human Resource Management (HRM) is a part of the broad Human

Resource Development (HRD) System, as this focus to
(A) Selection, Induction, Training and Development
(B) Operational and Organizational
(C) (A) and (B) above
12. Performance Appraisal is a double edged tool to
(A) Create space for the employee to organizationally survive.
(B) Offering challenges for promotion.
(C) Accompanying the course of Demotion.
13. Wage determination is mostly done through tools which are
14. Job Evaluation criterion comes from
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15. Exit Policy primarily emphasizes in the broad sense, for policy makers as
(A) Removing employees
(B) Down sizing
(C) Retiring people and rehabilitating them
(D) Bringing new blood to the Corporate
16. The goal of financial management is to
(A) Maximize the wealth of Preference Shareholders
(B) Maximize the wealth of Debenture holders
(C) Maximize the wealth of Equity shareholders
17. The Internal Rate of Return (IRR) is determined where
(A) The Net Present Value is positive
(B) The Net Present Value is negative
(C) The Net Present Value is zero
18. The Tax shield would result in
i. increase in tax liability
ii. Increase in EPS
iii. Decrease in EPS
iv. Decrease in tax liability
Codes:
(A) (ii) and (iv)
(B) (i) and (iii)
399
(C) (i) and (iv)
(D) (iii) and (iv)
19. Which of the following is a main method of issue of stocks?
(A) Vendor placing
(B) Public issue through Prospectus
(C) Private placements
20. The Capital Asset Pricing Model (CAPM) establishes the relationship
between
(A) Risk and EPS
(B) Risk and value of the firm
(C) Risk and the required rate of return
21. „Marketing is a human activity directed at satisfying needs and wants

through Exchange process‟; is the statement of
(A) Cundiffad Still
(B) Kenneth Andrews
(C) Philip Kotler
(D) Kishwar S. Kan
22. Promotion mix includes
(A) Advertising, publicity, personal selling and sales promotion
(B) Physical attributes, brand, package and product life cycle
(C) Brand name, product benefits, delivery and credit
(D) Transportation, material handling, packaging and customer service
23. Which of the following is not the stage of product life cycle?
(A) Introduction
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(B) Growth
(C) Market segmentation
(D) Decline
24. Which is the basic form of Innovation?
(A) Introduction of novel production process
(B) Improvement and development of existing process
(C) Improvement and development of existing firm
25. The scientific system of collecting and analysis of data pertaining to market
is known as
(A) Production Research
(B) Advertising Research
(C) Marketing Research
26. Which one of the following is not the function of Production
Management?
(A) Production, Planning and Control
(B) Procurement of Raw Materials
(C) Market Intelligence and Survey
(D) Plant Location and Layout
27. Time study refers to
(A) Developing a standard time to do a particular task
(B) Improving work methods
(C) Value analysis
(D) Value engineering
28. Acceptance Quality level is
(A) Maximum number of defectives that the consumers will accept
401
(B) Fraction defective(s) that the consumer considers acceptable
(C) Fraction defective(s) that the producer considers acceptable
(D) Maximum number of defectives that the producer will allow
29. In a transportation problem involving 10 origins and 5 destinations, the
number of constraints representing origin capacity and destination requirements
is equal to
(A) 50 (B) 49
(C) 15 (D) 14
30. The critical path of a network is
(A) For which earliest start time and latest start time are same
(B) The shortest time path through a network
(C) For which earliest finish time and latest finish time are same
(D) The longest time path through a network
31. If a person buys one ticket of a State lottery, then the probability that he
wins a price is 0.11. If a person buys one ticket each month for five months,
what is the probability that he will win least one price?
(A) 0.55
(B) 0.50
(C) 0.44
(D) 0.56
32. The standard error of the mean of a random sample of size two or more.
33. A store manager is trying to explore the relationship between percentage
fat content (Y) and price (X) of various dairy products. He finds that the
coefficient of determination is 0.4624 and the estimated regression line is Y =
0.5 – 0.02 X. The coefficient of correlation would be
402
(A) 0.68
(B) – 0.68
(C) – 0.02
(D) 0.4624
34. Which of the following statement on testing of hypothesis is always true?
(A) When the null hypothesis is rejected at 5%, it is always rejected at 1% level
of significance.
significance.
significance.
35. Which of the following devices would be considered a typical sequential
access medium?
(C) Magnetic Tape
(D) CD ROM
(A) BCG Matrix
(C) 7‘s framework
(A) Firm Resources
403
38. Diversification is to a new business area that has no obvious connection
with any of the company‟s existing areas refer to
39. Which business unit generates substantial cash surplus due to low industry
growth rate and high profit share?
(A) Dog
(B) Cash cow
(C) Question mark
(D) Star
(D) Adam Smith
(A) IIFT (B) CSIR
(C) SEBI (D) MSME
404
(A) Harold Koontz
(A) Blake & Mouton
(B) Strube& Garcia
(C) Stancy Adams
(D) Albert Bandura
47. Ethics provide
(B) CSR
(C) Justice
405
50. Corporate Social Responsibility (CSR) is looked as the organized network

of making long economic and social relationship of the corporate with the
society. But a business of which type, as mentioned below, cannot afford for it,
at the first instance?
(A) Large Business
(B) Medium Business
(C) Small Business
406
1. Cardinal measure of utility is required in
(A) Utility Theory
(B) Indifference Curve Analysis
(C) Revealed Preference
(D) Inferior Goods
2. A Right-ward shift in Demand Curve indicates
(A) A decrease in supply
(B) An increase in quantity supplied
(C) An increase in supply over the previous year
(D) Law of Variable Proportions
3. Which of the following is the condition for equilibrium for Monopolist?
(A) MR = MC
(B) MC = AR
(C) MR = MC = Price
(D) AC = AR
4. Giffen goods are those goods
(A) For which demand increases as price decreases
(B) Which are in short supply
(C) Which have high elasticity of demand?
(D) Which gives rise to a Cob-Web situation.
5. Match List-I with List-II and select the correct answer using the codes given
below the lists.
(a) Customer Interview Method 1. Consumers Interview
407
(b) Market Experiment Method 2. Time series or Cross Section
Data
(c) Regression Method 3. Market Stimulation
(d) Demand Forecasts 4. Market Experiments‘ Survey
Codes:
(a) (b) (c) (d)
(A) 1 3 4 2
(B) 1 3 2 4
(C) 2 4 3 1
(D) 4 2 1 3
6. Who divided all activities of the organizations into six groups; Technical,
(A) Peter Drucker
(B) D. E. McForland
(C) Henry Fayol
(D) George R. Terry
7. What are the elements that a Mission Statement of an Organization

should include?
(A) Self guidelines for Business Operations
(B) Identifies the reasons for existence of a company and its responsibilities to
the stakeholders.
(C) Identifies the firms‘ customers and their needs and matches them to the
products and services.
(D) All of the above (A), (B) and (C).
8. Changes in population characteristics such as age, gender, race, marital

status, income and education are examples of change:
(A) Demographic
408
(B) Cultural
(C) Geographic
(D) Diversity
9. Which of the following is not included as Micro-Environmental

Variables?
(A) Prevailing economic and political conditions.
(B) Emerging new technologies
(C) Financial conditions and culture
10. During his days at Midvale Steel Company F.W. Taylor saw that
employees soldiering – deliberately working at a pace slower than their
capabilities. He identified that, worker indulge in soldiering primarily for the
following reasons:
(A) Fear of losing jobs if they increase their output.
(B) Faulty wage systems.
(C) Out-dated methods of working
11. Among the best known trait approaches to personality measurement –

column A gives Traits and column B states the name of authority defining
them. Match the correct combination
Traits Author
(A) 20 + needs Murray
(B) 16 traits Eysenck
(C) 3 traits Cattell
(D) 5 traits Costa &Merree
(A) Often required

409
(B) Seldom required
(C) Required as a mandate, when conflict remains unresolved
(D) Not at all considered as an option
13. The policy of introducing “New Blood” is
(A) Steriotypic
(B) Bureacratic as well as redtapic
(C) Innovative and challenging, making the corporate dynamic
(D) Innovative, challenging, but often resisted
14. An “Assessment Centre” is
15. “Organizational learning” and “Learning organization” are
16. The value of the firm is maximized when the
(A) Market price of equity share is maximum
(B) Market price of equity share is minimum
(C) Market value of debt is maximum
17. Which of the following is the main assumption of Waltar Valuation Model?
(A) All financing is done through Retained earnings and external sources of
funds.
(B) With additional investment the firms business risk will change.
(C) There is a change in the key variables such as EPS and DPS
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18. Which of the following is an important money market instrument?
(A) Debentures
(B) Commercial Paper
(C) Public Deposits
19. The method of payment in Mergers and Acquisitions may include
(i) Cash
(ii) Loan stock
(iii) Ordinary shares
(iv) Convertible loan stock
(A) (i) & (iii) only
(B) (i) & (ii) only
(C) (i), (ii), (iii) and (iv)
(D) (ii) & (iv) only
20. Working capital refers to the capital mobilized for meeting
(A) Long-term financial needs of the company
(B) To meet day-to-day financial obligations of the company
(C) To meet the future financial requirements of the company
(A) The essence of marketing is a transaction of an exchange.

(B) Marketing–orientation is philosophy, which has to pervade the
organizationstructure
(C) Marketing is also a managerial function involving analysis, planning and
control marketing activities in an organization
411
22. A marketing plan is composed of three basic components, namely
9. Diversity
(A) 1, 2 and 3 only
(B) 6, 7 and 8 only
(C) 5, 7 and 9 only
(D) 2, 3 and 9 only
23. Which of the following is not the stage of new product development?
(A) Idea Generation
(B) Business Analysis
(C) Test Marketing
24. Marketing research does not normally
(A) Gather environmental information
(B) Provide a continuous source of information
(C) Relate to all aspects of marketing operations
(D) Describe the current situation
25. Which of the following is not included in 7 P‟s of services marketing?
(A) Physical evidence
(B) People
(C) Process
(D) Marketing plan
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26. Which of the following is not the type of Plant Layout?
(A) Product Layout
(B) Process Layout
(C) Fixed Position Layout
(D) Residential Layout
27. Which of the following factor is considered in the selection of a plant
location?
(A) Source of Raw-materials
(B) Availability of water
(C) Marketing facilities
(D) All the above
(A) The length of time it takes to complete a work task assigned to a specific
job
(C) Arrangement of machines according to sequence of operations
(D) Planning the work and working the plans
(A) A linear programming problem with all integer data base.
(B) A linear programming problem with two decision variables.
(C) Any linear programming problem.
30. If two dice are thrown, the probability that the sum of their points is greater
than 10 is
(A) 1/9
(B) 1/12
(C) 1/3
(D) 1/18
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31. A Binomial distribution is characterized as β (16,0.5) i.e. sample size is 16
and the probability of success is 0.5. The mean and variance of this distribution
will be respectively
(A) 8, 4
(B) 8, 8
(C) 4, 8
(D) 4, 4
32. Two variables are said to be perfectly negatively correlated if
33. Which type of sampling is appropriate when the population consists of well-
defined groups such that the elements within each group are homogeneous and
between each group they are heterogeneous?
34. Which of the following is not a type of internet connection?
(A) ISDN
(B) Dial-up
(C) Leased-Line
(D) ISP
(I) Poisson distribution has the property that 1. Its mean is greater than
Variance
414
(III) Chi-square distribution is 3. Positively skewed
distribution
(IV) Binomial distribution has the property that 4. Its mean and variance
are equal.
Codes:
(I) (II) (III) (IV)
(A) 4 2 1 3
(B) 4 2 3 1
(C) 1 2 3 4
(D) 2 4 3 1
(A) 1975
(B) 1985
(C) 1995
(D) 2001
(A) Focus
(B) Cost Leadership
(C) Differentiation
(D) All the above
415
(C) Company mission
(A) Exporting
(B) Joint venture
(A) Vision
(B) Risk Bearing
(D) Disloyalty
42. Which of the following organizations is meant for promoting small scale
industries at district level?
(A) SIDBI
(B) DIC
(C) SFCs
(D) NABARD
(A) Lack of capital
(B) Lack of market
(D) All the above
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(D) All the above
(A) Labor intensive
(C) Market leader
46. Business propositions are to be selected by making an analysis that, how

much the local resources will be depleted in the commencement and the course
of Business. This is known as
(B) To be promoted
48. Funding through Micro finance to Small and Micro Enterprises is not
successful due to
(C) (A) & (B)
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49. “Work-Diversity” by nature, does not go against Ethics. But an executive
assistant while getting transferred from “stores” to “dispatch” section created
turmoil in the office. He is
(A) A Compromise
(B) A Compulsion
(C) A Judgment
(D) (A) and (B)
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1. Consider a demand curve which takes the form of a straight-line cutting both
axes. Elasticity at the mid-point of the line would be
(A) 0
(B) 1.0
(C) 1.5
(D) 2.0
2. Price taker firms
(A) Advertise to increase the demand for their product
(B) Do not advertise, because most advertising is wasteful.
(C) Do not advertise because they can sell as much as they want at the current
price.
(D) Who advertise will get more profits than those who do not.
3. OPEC is an example of the type of producer‟s organization known as a
(A) Marketing Board
(B) Producer‘s Co-operative
(C) Trust
(D) Cartel
I. Responsiveness of demand to change in price 1. Income

elasticity of demand
II. Responsiveness of demand to change in tastes 2. Price elasticity of

demand
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III. Responsiveness of demand to change in income 3. Cross elasticity of
demand
IV. Responsiveness of demand to change in price
of related goods 4. Taste elasticity of

demand
Codes:
I II III IV
(A) 1 2 3 4
(B) 4 3 1 2
(C) 3 4 2 1
(D) 2 4 1 3
5. Opportunity costs are also known as
(A) Spill-over costs
(B) Money costs
(C) Alternative costs
(D) Sunk costs
6. Employees with high self-esteem set
(A) Higher goals for others
(B) Higher goals for themselves and lower goals for others
(C) Higher goals for themselves
7. Need for achievement goes with
(A) F.W. Taylor
(B) Hertzberg
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(C) McGregor
(D) McClelland
8. An organizational memory includes the following except
(A) Information that employees possess
(B) Knowledge embedded in the organization‘s systems and structures
(C) Documents
(D) Knowledge that is not documented
9. People should be held accountable for their own behavior, and if holding
people accountable for their own behavior entails capital punishment, then so be
it. However, no person should be held accountable for behavior of others over
which he or she had no control.
Which of the following is the most logical conclusion of the argument above?
(A) People should not be held accountable for the behavior of other people.
(B) People have control over their behavior.
(C) People cannot control the behavior of other people.
(D) Behavior that cannot be controlled should not be punished.
10. Nominal group technique is
(A) a consensus planning tool, generally used by groups to discuss, debate and
decide on issues of strength identification, problems and solutions.
(B) a consensus planning tool to arrive at decisions on issues, for instance man-
power requirement, by involving group of experts through blind rounds of
communication
(C) a majority based decision making tool
11. Which pattern reflects a pure executive form of management?
421
(A) Functional
(B) Line
(C) Line and Staff
(D) Committee
12. “A place for everything, everything in its place” is
(A) American Management
(B) 5s Practice
(C) Peter Principle
(D) A Chinese Practice
13. „Appreciative Enquiry‟ is
(A) Psychological Theory
(B) Training Method
(C) Business etiquette
(D) HR Quality
14. Robert Keplan is associated with
(A) A Benchmark Practice
(B) Balanced Score Card
(C) Kaizen
(D) Quality of Life
15. Strategic Intent of an Organization should clearly spell out
(A) Who we are
(B) Where are we going in the long term
(C) How will we measure the performance

422
16. In an endeavor to maximize corporate value, a finance manager has to factor
in the following
(A) Optimization Principle
(B) Risk-return Principle
(C) Marginal Principle
(D) All the above
17. The term financial engineering is related to
(A) Cost of production
(B) Financial restructuring
(C) Product planning
(D) Capital issue
18. Value of the merged firm shall be
(A) Less than the acquired firm
(B) More than the acquirer
(C) Greater than the target and the acquirer
19. When borrowing is less than equity, the company is said to be
(A) Trading on equity
(B) Trading on thick equity
(C) Trading on thin equity
(D) None of these
I. Secured debt 1. Mortgage on Assets
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II. Unsecured debt 2. Non-mortgage on Assets
III. Convertible debt 3. Option
IV. Redeemable debt 4. Payment
Codes:
I II III IV
(A) 1 3 2 4
(B) 2 1 3 4
(C) 3 1 4 2
(D) 1 2 3 4
21. It is a set of procedures and sources used by managers to obtain everyday

information about developments in the marketing environment.
It is known as
(A) Internal Records System
(B) Marketing Intelligence System
(C) Marketing Research System
(D) Marketing Decision Support System
22. Match the List – I with List – II:
(Stage of the product life cycle) (Marketing strategy applied

in the stage of the product life cycle)
I. Introduction Stage 1. Market Modification
II. Growth Stage 2. Rapid Skimming Strategy
III. Maturity Stage 3. Enter New Market Segments
IV. Decline Stage 4. Continuation Strategy
Codes:
424
I II III IV
(A) 3 2 4 1
(B) 2 3 1 4
(C) 2 3 4 1
(D) 4 2 1 3
23. It has been described as a cluster of complementary goods and services that
are closely related in the minds of consumers but are spread across a diverse set
of industries. It is known as
(A) Market Place
(B) Market Space
(C) Meta-Market
(D) Marketing Mix
24. Company‟s ability to provide individually differentiated product for each

consumer is called as
(A) Digitalization
(B) Disintermediation
(C) Customerization
(D) Connectivity
25. The qualitative value of an exposure through a given medium is related to
(A) Reach
(B) Frequency
(C) Impact
26. When work stations are arranged according to the progressive steps by
which the product is produced, it is called a
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(A) Functional layout
(B) Process layout
(C) Job shop layout
(D) Product layout
27. If for a demand process suited to a = 0.1 we try to fit a forecasting

procedure with a = 0.3, the forecast will
(A) Show large swings up and down
(B) Follow the demand better, consequently reducing forecast errors
(C) Show a pronounced behavior
28. CRAFT considers exchanges of locations for those departments which
(A) Have the same area
(B) Have a common border
(C) Either (A) or (B)
(D) Have same costs per unit of distance
29. If the ordering costs are over-estimated by 50 percent and carrying costs are
under-estimated by 50 percent, the total annual cost will exceed the optimum
cost by
(A) 73.2 per cent
(B) 50 per cent
(C) 0 per cent
(D) 150 per cent
30. PERT/CPM network analysis can be used for
(A) Project appraisal
(B) Project implementation
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(C) Project monitoring and control
31. If P (A) =2/3, P (B) =1/2, P (A/B) =1/3, then the value of P(B/A) is
(A) 1/2
(B) 1/3
(C) 1/4
(D) 1/5
32. The level of significance is the probability of committing the
(A) Type I error
(B) Type II error
(C) Standard error
(D) Probable error
33. The two lines of regression are 3x + 2y = 26 and 6x + y = 31 then the mean
of x is
(A) 3 (B) 4
(C) 6 (D) 7
34. For which distribution(s) Mean and Median are equal?
Codes:
(A) (i)
(B) (ii)
(C) (i) & (iii)
427
(D) (ii) & (iv)
35. The type of transmission channel which can transmit data in one direction
only is known as
(A) Simplex
(B) Half Duplex
(C) Full Duplex
(D) Half Simplex
II. C.K. Prahlad 2. Management by

Objectives
IV. Alfred Chandler 4. Structure follows

Strategy
Codes:
I II III IV
(A) 1 3 2 4
(B) 2 3 1 4
(C) 3 1 2 4
428
(D) 4 2 3 1
(A) Planning School
(A) Vision
(C) Objectives
(D) Policies
(A) Primary Sector
(C) Tertiary Sector
42. The definition of Micro, Small and Medium Enterprises (MSMEs) in India
is based on
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(C) Market coverage
(D) Export capacity
43. Which one of the following agencies has the power to declare any industrial
unit as a potentially sick unit?
(A) BIFR (B) SIDBI
(C) IRCI (D) FICCI
(A) Mumbai
(B) Lucknow
(C) New Delhi
(D) Hyderabad
(A) Rs10 lakhs, Rs5 crores and Rs10 crores
46. The study of moral principles or values that determine whether actions are
right or wrong and outcomes are good or bad refers to following:

Ethics)
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I. Ethical Climate 1. Each society‟s view of ethics must be
considered legitimate and ethical
II. Ethical Relativism 2. There are basic moral principles that

transcend cultural and political boundaries
III. Ethical Universalism 3. People pick-up subtle hints and clues that
tell them what behavior is approved and what is forbidden.
IV. Ethical Convergence 4. There are growing pressures on international

business to follow the same rules in managing ethical behavior and social
responsibility
Codes:
I II III IV
(A) 3 1 2 4
(B) 1 3 2 4
(C) 1 4 3 2
(D) 4 1 2 3
48. An organization‟s moral obligation toward all of its stakeholders is referred

as following:
(D) Professionalism
49. is the manager‟s dilemma when he has to decide on the

commercial proposal submitted by his son.
(A) Favouritism
(B) Moral Dilemma
431
(B) Green Marketing
432
1. In the case of an inferior commodity, the income elasticity of demand is
2. The slope of the iso-cost line is determined by
(A) Prices of the two factors
(B) Productivity of the two factors
(C) Degree of substitutability of the two factors
(D) None of these
3. Which one of the following statements is correct or more nearly correct?
(A) An increase in the price of commodity represents a fall in its value
(B) Value has nothing to do with the price
(C) If the price of a commodity falls, its value relative to other goods does not
change
(D) The price of a good is its value measured in terms of money
4. The important macro-economic aggregates are
(A) Aggregate Consumption
(B) Gross Domestic Capital Formation
(C) Gross Domestic Savings and GNP
5. Match the following
I. For a given 10 per cent change in price,
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II. For a given 10 per cent change in price,
Demand changes by 5 per cent 2. e = 1
III. For a given 10 per cent change in price demand
changes by 10 per cent 3. e < 1
IV. For a given 10 per cent change in
price, demand changes by 20 per cent 4. e = 0
Code:
I II III IV
(A) 3 1 2 4
(B) 4 3 2 1
(C) 1 2 3 4
(D) 2 3 1 4
6. Long – lasting beliefs about what is important in a variety of situations, that

guide our decisions and actions are:
(A) Values
(B) Ethical dimensions
(C) Priorities
(D) Desires
7. Figure – Ground Theory explains the process of
8. Successive re-inforcements resulting in desired behavior are
(A) Mentoring
(B) Motivation
(C) Shaping
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(D) behavior-modification
9. Psychological contract is related to
(A) Job – person fit
(B) Role – person fit
(C) Organization – person fit
10. Equity is called as
(A) Equality of all
(B) Standard performance
(C) Comparative sense of justice to self
11. The distinction between „job enrichment‟ and „job enlargement‟ is
(A) Semantics
(B) ‗Job enrichment‘ is vertical loading while ‗job enlargement‘ is horizontal

loading
(C) ‗Job enrichment‘ is the outgrowth of Hertzberg‘s theory while ‗job

enlargement‘ is of Maslow‘s orientation.
(D) ‗Job enrichment‘ is more for the individual and the other is more of
organization making
12. In „delegation‟
(A) Only authority is delegated not responsibility
(B) Both authority and responsibility are delegated
(C) Only responsibility is delegated, not authority
(D) Neither responsibility, nor authority is delegated
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13. Cross-functional groups that operate across space, time and organizational
boundaries with members who communicate mainly through information
technologies are
(A) Telecomputers
(B) Virtual teams
(C) Teleworkers
(D) Telemarketers
14. Career resilience means
(A) Ability to switch careers
(B) Ability to remain with same competencies refining suitably for

organizations
(C) Lack of capacity to remain in career
15. Lock out means
(A) An antithesis of strike
(B) Refusal to employ any person in employment
(C) the temporary closing of a place of employment
(D) Illegal strike
16. Which is the task of a finance manager?
(A) Investment decision
(B) Dividend decision
(C) Management of income
17. Which method of capital budgeting focuses on liquidity of a project?
(A) Net present value
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(B) Profitability index
(C) Payback period
(D) Internal rate of returns
18. Which statement is true about deep discount bonds?
(A) These are in the form of low interest bonds
(B) These bonds are sold at a discounted value and on maturity face value of the
bond is paid to the investors
(C) There is no interest payout during lock-in period
19. Financial leverage is
(A) EBIT × 100
Sales
(B) EBIT
EBT
(C) Sales
Fixed Assets
(D) Profit × Capital
Sales
I. Rate of return method 1. Capital budgeting
II. Purchase consideration 2. Merger
III. Diminishing Balance Method 3. Depreciation
IV. Fifo Method 4. Stock valuation
Code:
437
I II III IV
(A) 1 3 2 4
(B) 3 2 4 1
(C) 1 2 3 4
(D) 1 4 3 2
21. Arrange the following steps of a five-stage model of the consumer buying
process:
I. Evaluation of Alternatives
II. Need Arousal
III. Information search
IV. Purchase Decision
V. Post Purchase behavior
Code
(A) IV, II, III, I, V
(B) III, II, I, IV, V
(C) I, II, IV, III, V
(D) II, III, I, IV, V
22. It refers to the total number of items in the Product Mix. It is known as
following.
(A) The width of product mix
(B) The length of product mix
(C) The depth of product mix
(D) The consistency of product mix
23. Given below are two statements, one labeled as Assertion (A), and the other
labeled as Reason (R). State the correct answer from code given below.
438
Reason (R) : Pure-click companies are those companies that have launched a
Code:
(A) (A) is correct, but (R) is wrong.
(B) Both (A) and (R) are correct.
(C) (A) is wrong, but (R) is correct.
(D) Both (A) and (R) are wrong.
24. Match List-I and List-II.
(Characteristics of Services) (Marketing Strategy applied

considering a characteristic of service)
I. Intangibility 1. Preparing a service blue print showing

each service and process in a flow chart.
II. Inseparability 2. Tangiblize the intangible
III. Variability 3. To train more service providers and

build up client confidence.
IV. Perishability 4. Use differential pricing
Code:
I II III IV
(A) 2 1 3 4
(B) 2 3 1 4
(C) 1 3 2 4
(D) 2 1 4 3
439
25. A diverse collection of incentive tools designed to stimulate quicker buying
of a particular product or service by consumers or the trade is known as
(A) Advertising
(B) Personal selling
(C) Publicity
(D) Sales promotion
26. Which of the following departments is not directly affected by the facilities
location decision?
(A) Production / operations
(B) Marketing
(C) Personnel
(D) Finance
27. Ship building and construction of dams and bridges are typical examples of
(A) Fixed position layout
(B) Functional layout
(C) Product layout
(D) Project type layout
28. If unit item cost = Rs10, monthly carrying charge = 3 per cent, monthly
demand = 100 units and ordering cost = Rs20 per order, the EOQ is:
(A) 11.45
(B) 400
(C) 115.4
(D) 33.3
29. In managing a project, a network is better suited than Gantt chart because
440
(A) It can be updated more easily
(B) It clearly brings out the interdependencies between the different activities
(C) Both (A) and (B)
30. The aggregate production plan spans
(A) Short time horizon
(B) Intermediate time horizon
(C) Long time horizon
31. The probability that a contractor will get a plumbing contract is 2/3 and that
he will get an electric contract is 4/9. If the probability of his getting at least one
of the two contracts is 4/5, then the probability that he will get both contracts is
(A) 10/45
(B) 8/27
(C) 14/45
(D) 26/45
32. If a random variable X follows Poisson distribution such that P(X = 1) =

P(X = 2), then the mean of the distribution is
(A) 1 (B) 2
(C) 3 (D) 4
33. The value of R1.23 lies between
(A) –1 and +1
(B) –1 and 0.0
(C) 0.0 and +1
(D) – 0.5 and + 0.5
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34. A source programme is
(C) the machine language translation of a programme written in high-level

language
35. Processing data in groups collected over periods of time is known as
(A) Time - sharing
(A) Tom Peters
(D) Garry Hamel
37. In highly competitive environment an organization to achieve sustained

success should be
(A) Better
(B) Bigger
(C) Resilient
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40. If two or more companies are merged and only one of them survives while
others loose their independent entity, it is referred to as
(A) Merger
(B) Absorption
(C) Amalgamation
(D) Combination
(A) Two categories
(C) Four categories
443
(D) Four categories
(B) Service sector
(C) External sector
43. How many times the census of registered Micro, small and medium
Enterprises (MSMEs) have been made by Small Industries Development
Organization (SIDO)?
(A) 1
(B) 2
(C) 3
(D) 4
(A) New Delhi
(B) Ahmedabad
(C) Patna
(D) Kolkata
45. Industrial Policy of which year contained for the very first time a special
thrust on measures for promoting and strengthening small tiny and village
enterprises
444
(A) 1956
(B) 1991
(C) 1948
(D) 1977
46. Members of organizations are increasingly finding themselves facing

situations in which they are required to define right and wrong conduct. It is
most aptly called as following
47. Situations in which individuals are required to define right and wrong
conduct to be complied with are called as following
(A) Ethical climate
(C) Code of Ethics
I. Walk the talk
II. Size up your company‘s current ethics
Code:
445
(A) Producer
(B) Seller
(Ethical Issue) (Stakeholder affected)
Code:
I II III IV
(A) 2 4 3 1
(B) 3 1 2 4
(C) 1 3 4 2
(D) 3 2 1 4
446
1. Under perfect competition in the long run
(A) All firms earn normal profits
(B) Few firms earn super normal profits
(C) All firms are at break even
2. National Income at market prices is equal to
(A) Gross national product at market prices
(B) Gross domestic product at market prices
(C) Net national product at factor cost
3. If there is a single buyer, it is called
(A) Monopoly
(B) Oligopoly
(C) Monopsony
4. Under which of the following method the time value of money is not
considered?
(A) Net present value method
(B) Internal rate of return method
(C) Payback period method
5. A firm is having increasing returns to scale means
447
(A) It is having increasing costs.
(B) It is having constant costs.
(C) It is having decreasing costs.
6. Production can be measured in terms of which of the following?
(A) Total productivity
(B) Marginal productivity
(C) Average productivity
7. Which of the following is an objective of human resource management?
(A) Productivity
(B) Quality of work life
(C) Organizational change
(D) All the above
8. Motivation implies that the employees in an organization
(A) Exert more effort to accomplish the desired goals of the organization.
(B) Exert more effort to accomplish the individual goals.
(C) Exert more effort to accomplish the common goals of employees.
(D) Exert more effort to accomplish the desired goals of the employer,
employees and the Government.
9. Communication can be
(A) Oral
(B) Written
(C) Oral and Written

448
10. Which of the following is not considered as a leadership style?
(A) Task oriented leadership style.
(B) Society oriented leadership style.
(C) Employee oriented leadership style.
(D) Autocratic leadership style
11. Which of the following method has not been given a statutory form in
India?
(A) Conciliation
(B) Mediation
(C) Voluntary Arbitration
(D) Adjudication
12. What are the operative functions of HRM?
(A) Organizing
(B) Directing
(C) Controlling
13. Which one is not a performance appraisal method?
(A) 360° performance appraisal
(B) Balanced score card
(C) Rank method
(D) Interview method
14. Selection of persons in an organization is the responsibility of
(A) Security Dept.

449
(B) Personnel Dept.
(C) Trade Unions
(D) Canteen Dept.
15. Labor Welfare facilities were incorporated in which legislation?
(A) MRTP Act
(B) Essential Commodities Act
(C) Consumer Protection Act
(D) Factories Act
16. Job analysis involves
(A) Job description and job specification
(B) Job order and job description
(C) Job specification and job order
(D) Job satisfaction and job description
17. Which one of the following represents number of years required to recover
the initial investment?
(A) Accounting rate of return
(B) Payback period
(C) Internal rate of return
(D) Net present value
18. Other things being equal, stocks which are highly liquid command
(A) Higher dividend payout ratio
(B) Lower dividend payout ratio
(C) Higher P/E multiples
(D) Lower P/E multiples

450
19. Weighted Average Cost of Capital may contain
I. Cost of Equity
II. Cost of Debt
III. Cost of goods purchased
IV. Cost of initial investment
(A) I, II & III are correct.
(B) II, III & IV are correct.
(C) III & IV are correct.
(D) I & II are correct
20. Long term sources of finance may contain
I. Retained earnings
II. Inter corporate deposits
III. Debentures
IV. Preference share capital
(A) I, III & IV are correct
(B) II, III & IV are correct
(C) II & III are correct
(D) II & IV are correct
21. When a firm proposes to acquire another firm, the merger proposal may be
viewed as a
(A) Working capital management proposal
(B) Capital budgeting proposal

451
(C) Financing decision
(D) Dividend decision
22. Which of the following is not the element of promotion-mix?
(A) Advertising
(B) Place
(C) Personal selling
(D) Publicity
23. Which of the following is in correct order?
(A) Product, Place, Promotion and Price
(B) Product, Promotion, Place and Price
(C) Product, Price, Promotion and Place
(D) Product, Price, Place and Promotion
24. Which of the demographic variables is not used by marketers for

demographic segmentation?
(A) Gender (B) Age
25. At which stage of the new product development, the launching of new
product will take place
(A) Business Analysis
(B) Test Marketing
(C) Commercialization
(D) Marketing strategy Development
26. If a company uses its company name for its entire range of products offered,
then it is called
(A) Private branding

452
(B) Corporate branding
(C) Product-line branding
(D) Specific product branding
27. One-level channel of distribution consists of
(A) Producer – consumer
(B) Producer – dealer – consumer
(C) Producer – dealer – retailer – consumer
(D) Producer – dealer – wholesaler – retailer – consumer
28. The primary role of a production manager is
(A) To meet the production target and delivery schedule
(B) To produce goods/services of right quality
(C) To produce goods/services by right quantity at the predetermined time
29. Fixed Position Layout is used when
(A) The operation requires heavy tools and equipments.
(B) The operation requires only hand tools and simple equipments.
(C) The continuity of production process is to be maintained.
30. Critical Path Method (CPM) is concerned with estimation of
(A) Optimistic time
(B) Production lead time
(C) Pessimistic time
453
31. In a normal distribution, mean (m) ± 3s (3 standard deviation) limits
contains approximately
32. Firms choose a focus strategy to serve the needs of which of the following?
(A) Buyers group
33. Which of the following is not the component of work study?
(B) Case study
(C) Time study
(D) Motion study
34. Half percent of the letters mailed in a city have incorrect addresses. Out of
200 such letters mailed in a day, the probability of finding at most 3 incorrect
addresses is
(A) 3e/8
(B) 8/3 e–1
(C) 1/ 6 e–1
(D) 5/ 2 e–1
454
35. If X is a random variable normally distributed with mean u and variance
σ2, then the mean deviation about mean is given by
(A) 1/√2π
(B) √2/π
(C) σ / 2π
(D) √2σ
36. The level of significance is the probability of committing
(A) Type I error
(B) Type II error
(C) Standard error
(D) Probable error
37. Which of the following tests is used to test a hypothesis about the mean of a
(A) Normal test
(C) Paired t-test
(D) Chi-square test
38. Mean and variance of Binomial Distribution are
(C) m and np(D) np and npq
455
(A) Cost Leadership
(C) Cost focus
(D) Group focus
(A) CII (B) RBI
(C) SIDBI (D) BIFR
456
(D) Profiteering
457
50. The Business Code of Conduct provides guidance to managers and

employees
458
1. During last five years per capita income of India is increasing, that means
(A) National income growth of India is more than growth of population.
(B) Growth in population is more than the growth in National income of India.
(C) National income of India & population of India have grown at the uniform
rate.
2. In the short run firm considers the minimum of its average variable cost
curve as
(A) Break-even point
(B) Shutdown point
(C) Economies of scope
3. The positive cross elasticity of demand between two products means
(A) Two products are substitutes
(B) Two products are complementary
(C) Two products are neither substitutes nor complementary
4. A monopolist always operates in the
(A) Inelastic segment of its demand curve
(B) Elastic segment of its demand curve
(C) Unitary elastic segment of its demand curve
459
5. The price elasticity of demand for any product in the long run
(A) Is more than its short run value.
(B) Is less than its short run value.
(C) is same as its short run value.
6. Earnings foregone in the context of the best alternative is termed as
(A) Past cost
(B) Historical cost
(C) Opportunity cost
(D) Sunk cost
7. A situation where management is unable to provide employment due to non-

availability of work is called
I. Lock out
II. Lay off
III. Termination
IV. Closure
8. Which one of the settlement methods is not relevant here for disputes?
(A) Collective Bargaining
(B) Compulsory Adjudication
(D) Reference to Civil Court

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9. Which of the following shows a situation of Trade Union rivalries in India?
(A) Different Unions in different organizations.
(B) More unions in the same organization having affiliation with different
political parties and representing the same type of workers.
(C) More unions in the same organization all representing different types of
workers.
10. Reduction of Labor Force is called
(A) Termination
(B) Retrenchment
(C) Lay-off
(D) Right sizing
11. The process of establishing the value of jobs in a job hierarchy is known as
(I) Job analysis
(II) Job requirement
(III) Job evaluation
(IV) Performance evaluation
12. Which of the following is the meaning of Human Resource Planning?
(A) Evaluation of job
(B) Satisfaction of the employees on the job
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(C) Appraising the performance of employees
(D) It is the process by which an organization ensures that it has the right
number and kind of people at the right place, at the right time.
13. Induction refers to
(A) Giving training to the employees.
(B) Giving incentive to the employees.
(C) Introducing employees to the organization culture and situation.
(D) Increasing the morale of the employees.
14. Which of the following is not a fringe benefit?
(A) Transport
(B) Subsidized canteen facilities
(C) Free education to the children
(D) Dearness Allowance
15. „X‟ and „Y‟ theory was prepared by
(A) Herzberg
(B) Maslow
(C) Porter and Lawler
(D) McGregor
16. Which of the following formula is used to calculate Pay Back Period when
cash inflows are constant?
(A) Fixed Assets/Current Assets
(B) Fixed Assets/Current Liabilities
(C) Initial Investment cost/Annual cash inflows
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17. The P/E ratio approach to stock valuation is also known as
(A) Earnings multiplier approach
(B) Dividend discounting approach
(C) Required rate of return
18. The capital structure theories which argue that capital structure is relevant
to the value of firm contain
I. Net Income Approach
II. Net Operating Income Approach
III. Traditional Approach
IV. Modigliani and Miller Approach
(A) I & II are correct.
(B) I & III are correct.
(D) II & IV are correct.
19. Short term financing instruments may contain
I. Commercial Paper
II. Public Deposits
III. Term Loans
IV. Trade Credit

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(D) I, II & IV are correct.
20. For calculating weighted average cost of capital, cost of each source of
capital is multiplied by proportion applicable to it. The proportions may be
based on
(A) Book values only
(B) Target capital structure only
(C) Market values only
22. Which of the following is not a stage in the new product development?
(A) Generation of ideas
(D) Test marketing
23. Industrial marketing involves
(A) Business to Business
(B) Business to Customer
(C) Customer to Customer
(D) Retailer to Consumer
24. The concept of Marketing Myopia is propounded by
(A) Philip Kotler
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(B) C.K. Prahalada
(C) Peter Drucker
(D) Theodore Levitt
25. In which stage of product life cycle, the company takes decision whether to
26. Which of the following is the best technique to manage the existing
products?
(A) Ansoff Matrix
(C) BCG Matrix
(D) Product life cycle analysis
27. Which of the following is not an element of production management?
28. Production Management Tactical Planning decisions include
(A) Establishing parameters for measuring operational efficiency and

productivity.
(B) Establishing quality specifications and test details.
(C) Determining starting and finishing time of each job in the work stations.
29. Work study refers to
(A) Analysis of work into smaller parts followed by re-arrangement of these

parts to give the same effectiveness at lesser cost.
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(B) Analytical investigation of the methods involved in the work.
(C) Developing new methods to give work effectiveness.
30. Economic lot size is known as
(A) The lot size for which the total cost per time period is minimum.
(B) The ordering cost and carrying cost are minimum.
(C) The lot size that strikes a balance between ordering cost and carrying cost.
(D) The quantity to be ordered each time is fixed.
31. Objective of Value Engineering is
(A) Reduce cost without reducing the quality.
(B) Increase value without increasing the cost.
(C) Reduce cost by reducing the quality.
32. If the independent variates x I (i = 1, 2, …..n) are normally distributed about

a common mean, a, with a common variance, σ2, their mean is also normally
distributed about a, but with a variance
(A) nσ2
(B) σ2n
(C) (σ2)n
(D) σn/2
33. The weak law of large numbers is another version of
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34. The basic assumptions underlying the t-test for the difference of two
sample means are that the parent populations are and
population variances are
(A) Of any shape; equal and known
(B) Normal; equal and known
(C) Normal; equal but unknown
(D) Normal; unequal but known
35. LAN stands for
36. If X is normally distributed with mean 30 and s.d. 5 and φ (x) denotes: - 1 ʃ
e -1/2 t² dt then P (26<X<40) and P (X > 45) given by:- √2π
(a) Φ (.8) + φ (.2) and φ(3) -1/2
(b) Φ (2) - φ (.8) and 1/2 -φ(3)
(c) Φ (2) - φ (.8) and 1/2 +φ(3)
(d) Φ (2) + φ (.8) and 1/2 φ(3)
37. What enables the management to find out whether the strategic
management process are appropriate, compatible and functioning in the
desirable direction?
(C) Premise control
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(A) Collusion
(C) Differentiation
40. Which of the following relationship strategies result into forming of a new
organization?
(B) Partnership
(C) Joint venture

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(B) SBU strategy
(D) Global strategy

their
(C) SWOT analysis
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47. Identify from the options given below, which one is not a source of
business ethics?
(A) Religion
(B) Legal system
(C) Culture
(A) Save water
(B) Save energy
(C) Save money
(D) Respect woman
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1. The elasticity of demand indicates
(A) The rate of response of demand to a change in price.
(B) The rate of change of demand to a change in income.
(C) The change in the tastes of consumers at different prices.
(D) The rate of response of demand to a change in supply.
2. A rightward shift in supply curve indicates
(B) An increase in quantity demanded
(C) An increase in supply
(D) Law of variable proportion
3. Which of the following is the condition of equilibrium for the

monopolist?
(A) MR = MC (C) AR = MC = Price
(B) MC = AR (D) AC = AR
4. If the demand curve is a rectangular hyperbola, elasticity is
(A) 1 (C) infinity
(B) 0 (D) less than one
5. If both supply and demand increase by the same proportion,
(A) Quantity remains constant (C) Price increases
(B) Price remains constant (D) Quantity increases
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6. What leads to rationing and black marketing under perfect competition?
(A) Price support (C) Decrease in supply
(B) Excess demand (D) Price control
7. In Maslow‟s need hierarchy theory, which of the following is not high order
needs?
(A) Safety (C) Esteem
(B) Social (D) Self-Actualization
8. Feeling arising out of inadequate definition of roles is known as
(A) Role ambiguity (C) Role perception
(B) Role conflict (D) Role expectation
9. A type of group discussion process in which members of the group are

encouraged to generate as many imaginative and creative ideas in a relatively
short period of time is known as
(A) Brain storming (C) Simulation
(B) Group working (D) Group effect
10. The amount of satisfaction an individual anticipates from a particular

outcome is known as
(A) Theory Y (C) Valence
(B) Theory Z (D) Stress
11. A personality characteristic indicating one‟s willingness to do whatever it

takes to get one‟s own way is known as
(A) Locus of control (C) Job characteristic model
(B) Machiavellism (D) Personality legitimacy
12. The process of studying and collecting information relating to a specific job
is known as
(A) Motion study (C) Job specification
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(B) Job analysis (D) Job enrichment
13. The horizontal expansion of jobs is termed as
(A) Job enlargement (C) Job sharing
(B) Job enrichment (D) Job involvement
14. A bargaining which is based upon zero-sum game is known as
(A) Integrative bargaining (C) Distributive bargaining
(B) Principled bargaining (D) None of these
15. The final link in the communication process that puts the message back into
the system as a check against misunderstandings is described as
(A) Decoding (C) Feedback Loop
(B) Feedback (D) None of these
16. In the „Managerial grid‟ 9, 1 style is termed as
(A) Team Management (C) Authority Obedience
(B) Country Club Management (D) Improvised Management
17. Which of the following is not one of the 5s of housekeeping?
(A) Sort (C) Specialize
(B) Systemize (D) Shine
18. Internal rate of return method applied for capital budgeting decision
(A) Allows to take different discount factors.
(B) Uses cost of capital as discount factor.
(C) May give more than one IRR.
(D) Distinguishes between the IRR for lending and borrowing decision.
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19. Beta in the context of security analysis indicates
(A) Systematic risk (C) Total risk
(B) Unsystematic risk (D) All of the above
20. Assuming constant rate of growth of dividend, value of share will be equal
to
(A) Po = Do/r – g (C) P1 = Do/r + g
(B) P0 = D1/r – g (D) P1 = D0 + g
21. Theoretically, with the issue of rights share the value of existing shares
(A) Will increase (C) will reduce
(B) Will not change (D) May increase or decrease
22. When the cash flow outcomes of succeeding period depends on what has
happened before, the probabilities of succeeding period are known as
(A) Joint probabilities (C) simple probabilities
(B) Conditional probabilities (D) decision tree
23. A high risk, high-yield often unsecured bond rated below investment grade
is known as
(A) Income-bond (C) Junk bond
(B) Subordinated debentures (D) Serial bond
24. Who coined the term 4 Ps?
(A) Philip Kotler (C) Peter Drucker
(B) Stanton (D) McCarthy
25. In the buying decision process, what is the term used for a person who first
suggests buying the product?
(A) Consumer (C) Initiator
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(B) Decider (D) Influencer
26. Which of the following is in order?
(A) Product, place, price and promotion.
(B) Price, product, promotion and place.
(C) Promotion, place, product and price.
(D) Product, price, place and promotion.
27. Which of the demographic variable is not used by marketers for

demographic segmentation?
(A) Income (C) Family life cycle
(B) Gender (D) Poverty
28. Which of the following indicates the distinction between Advertising and
Publicity?
(A) Advertising is expensive, publicity is less expensive.
(B) Advertising is through T.V., publicity is through print media.
(C) Advertising is a paid form of communication; Publicity is not a paid form of

communication.
(D) Advertising is through film stars, Publicity is through cricketers.
29. Which of the following order about product life cycle is correct?
(A) Introduction, Maturity, growth and decline.
(B) Introduction, growth, maturity and decline.
(C) Introduction, decline, maturity and growth.
(D) Growth, maturity, decline and introduction.
30. Companies that attack other firms including market leader in an attempt to
build market share are called
(A) Market followers (C) Market penetrators
(B) Market challengers (D) Market Nichers
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31. Tactical production planning decision includes
(A) Layout planning (C) Production process
(B) Machine loading (D) Plant location
32. Which of the following is not to be considered for plant location decision?
(A) Availability of labor (C) Availability of raw material
(B) Availability of power (D) Brand image
33. Moving average forecasting is used to
(A) Establish the trend of the past
(B) Forecast the current demand
(C) Forecast market competition
(D) Forecast Quasi demand
34. Work measurement is essential for
(A) Labor utilization and efficiency
(B) Determining the delivery dates
(C) Introducing financial incentive schemes
35. E O Q refers to the quantity for which
(A) Fixed cost is equal to variable cost
(B) Carrying cost is equal to ordering cost
(C) Average cost is equal to marginal revenue
(D) Total contribution minus cost of goods
36. A company is producing steel rods. Assuming that the length of steel rods
follows normal distribution with mean 10 inches & variance equal to
0.04 sq. inches. The standard error of mean, when a random sample of 16 is
taken, will be
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(A) 4/10 (C) 2/40
(B) 2/20 (D) None of these
37. Judgment sampling to select the sampling units from population is termed
as
(A) Probability sampling (C) Systematic sampling
(B) Non-probability sampling (D) None of these
38. Wide area network is
(D) None of these.
39. Correlation coefficient between two variables X & Y is calculated as

0.63. If the measurements of X & Y are changed to U = X – 10 & V = Y + 5 the
new value of correlation coefficient will be
(A) 0.063 (C) 0.63
(B) 0.315 (D) None of these
40. A person appears in an interview for a job in the two companies say X and
Y. The chances of selection in company X is 0.7 and chances of selection in Y
is 0.6. The probability of his selection in either of the two companies will be
(A) 0.42 (C) 0.50
41. Which of the following helps a manager to identify the opportunities and
threats in the competitive industry environment?
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(D) Market Research
(A) Operations (C) Technology development
(B) Firm infrastructure (D) Procurement
44. Business unit which holds a large market share in a mature and slow
growing industry is called
(A) Star (C) Question Mark
(B) Dog (D) Cash cow
45. Which strategy requires a company to concentrate its efforts in one or more
narrow segments instead of broad based strategy?
(A) Cost leadership (C) Differentiation
(B) Focus (D) None of the above
47. Which of the following has been entrusted with the responsibility of
developing and supporting small business?
(A) IDBI (C) NABARD
(B) RBI (D) SIDBI
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(B) C. K. Prahlad(D) Peter F. Drucker
(A) Functions efficiently without harming the society
(B) Abjures the profit motive
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1. Price elasticity of demand is best defined as:
(A) The change in the tastes of consumers at different prices
(B) The rate of response of demand to a change in supply
(C) The rate of response of demand to a change in price
(D) The rate of change of demand to a change in price
2. Giffen goods are those goods:
(A) For which demand increases as price increases
(C) Which have high income elasticity of demand
(D) Which give rise to a decrease in demand
3. The situation where the market consists of only two buyers, then it is called:
(A) Monopsony
(B) Duopsony
(C) Monopoly
(D) Duopoly
4. In India, which method is used to measure National Income in service

sector?
(A) Expenditure method (C) Output method
(B) Income method (D) Value added method
5. Short run cost curves are influenced by:
(A) Principles of return to scale (C) Law of variable proportion
(B) Economies of scale (D) Diseconomies of scale
6. The term opportunity cost refers to:
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(A) Variable cost
(B) Short run cost
(C) Cost of one product in terms of production of others forgone
7. Which of the following is not one of the ego states of transactional analysis?
(A) Child (C) Adult
(B) Young (D) Parents
8. Where anchors are illustrations that help to define as superior, average or

below average, the behavior of the employee, the rating scale is known as:
(A) Behavioral expectation scale (C) Forced choice description
(B) Behavioral observation scale (D) Grading scale
9. In the decision tree model of vroom and yetton the style when the leader
shares the problem with subordinates as a group, obtains collective ideas, and
then makes the decision is identified as:
(A) A I (B) A I I (C) C I (D) C I I
10. Leaders who provide individualized consideration and intellectual

stimulation and who possess charisma is known as:
(A) Transactional Leaders (C) Situational Leaders
(B) Transformational Leaders (D) Visionary Leaders
11. The drive to become what one is capable of becoming is:
(A) Self-Awareness (C) Self-Efficiency
(B) Self-Actualization (D) Self-Esteem
12. Which of the following is not one of the career anchors?
(A) Managerial competence (C) Personal competence
(B) Technical - functional competence (D) Security
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13. Theory “Z” has been propounded by:
(A) McGregor (C) Maslow
(B) Ouchi (D) Skinner
14. Which of the following is not within the scope of “Adjudication”?
(A) Conciliation (C) Industrial Tribunal
(B) Labor Court (D) National Tribunal
15. Outplacement services are provided to employees who have been:
(A) Dismissed (C) Retired
(B) Rendered surplus (D) Given voluntary retirement
16. What notice period is required for going on strike/lockout in public utility
services?
(A) One week (C) Six weeks
(B) Three weeks (D) Nine weeks
17. Modifying methods of performing a job to reduce the levels of skill or

skills demanded is known as:
(A) Multi - tasking (C) Multi - skilling
(B) De - skilling (D) None of these
18. The computation of NPV is based on the assumption that:
(A) Cash flows for each year remain constant
(B) Net present value can never be less than zero
(C) Intermediate cash flows are being reinvested at the discount factor
(D) Discount factor should remain constant throughout the life of the project
19. For determination of cost of equity the formula used is:
(A) Rate of interest (1 — t)
(B) Rate of dividend (1 — t)
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(C) Rate of Dividend (Face value — Issue Price)/n
(D) D1 + g
Po
20. According to MM - Approach proposition - I, value of firm is:
(A) Independent of capital structure
(B) Dependent on capital structure
(C) Dependent on tax-rate of the enterprise
(D) Dependent on risk of the enterprise
21. A stable dividend policy indicates:
(A) Stable earning/price ratio (C) Stable pay-out ratio
(B) Stable price/earnings ratio (D) Stable earnings per share
22. The vertical merger represents merger of firms engaged in:
(A) The same line of business
(B) Different stages of production in an industry
(C) Unrelated lines of business
23. The degree of total leverage is equal to:
(A) Percentage change in EPS/percentage change in sales
(B) Percentage change in EBIT/percentage change in sales
(C) Percentage change in EPS/percentage change in EBIT
(D) Percentage change in sales/percentage change in EBIT
24. Changes in the population characteristics such as age, gender, race, marital
status, income and education are the examples of:
(A) Geographic characteristics (C) Psychographic characteristic
(B) Cultural characteristics (D) demographic characteristics
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25. Which of the following is not constituent of promotion-mix?
(A) Advertising (C) Direct marketing
(B) Sales promotion (D) Publicity
26. Which of the following factors does not influence the pricing strategy of a
firm?
(A) Market (C) Cost
(B) Competition (D) R & D
27. Who coined the term “Marketing Myopia”?
(A) Peter Drucker (C) Philip Kotler
(B) Stanton (D) Theodore Levitt
28. In the diffusion of innovation who are the people not willing to try out the
product?
(A) Innovators
(B) Progressive people
(C) Early adopters
(D) Early majority
29. Which of the following is not a variable for segmenting the market?
30. At which stage of new product development process, the launching of new
product will take place:
(A) Concept development
(B) Marketing strategy development
(C) Test marketing
(D) Commercialization
31. Strategic production planning decisions include:
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(A) Quality development (C) Manpower planning
(B) Make or Buy decision (D) Layout planning
32. Which one of the following is not the type of Plant Layout?
(A) Process Layout (C) Fixed position Layout
(B) Product Layout (D) Selection Layout
33. Production control is concerned with:
(A) Establishment of Quality Standard norms
(B) Execution of production plan
(C) Expediting the production process
(D) Product Quality control
34. Critical Path Method network analyses is done with the objective of:
(A) Determining the completion time for the project
(B) Determining the product quality
(C) Determining the production cost
(D) Determining the pay-back period
35. „Q‟ systems of inventory control provides for:
(A) Ordering the inventory when it normally equals to EOQ
(B) Ordering the inventory depending on the stock level on hand
(C) Optimization of inventory costs
36. In case of Binomial distribution, the mean is:
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(D) None of these
37. Car hire firm has two cars which it hires out daily. The demand for car is
distributed as Poisson with mean 2. If the value of e2250.1353, the number of
days out of 100 days on which neither of the car is used are:
(B)Approximately 22 (D) None of these
38. A committee of four has to be formed from among 3 Economists, 2

Managers, 4 Doctors and one Statistician. The Probability that all 4 professions
are represented on the committee will be:
(A) 14/35 (B) 10/35 (C) 4/35 (D) 24/35
39. Correlation Coefficient is equal to:
(D) None of these
40. When Null hypothesis (Ho) is true and test rejects it, it is called:
(C) Level of significance (D) None of these
41. Which element identities the strategic factors that determine the future of a
firm?
42. Which strategy provides a means for achieving a company‟s annual

objectives?
(A) Marketing Strategy (C) Business Strategy

486
(B) Operating Strategy (D) Corporate Strategy
44. Which one of the following represents the best long run opportunity in a
firm‟s business portfolio?
45. A firm tries to achieve the lowest cost of production and distribution so that
it can set its prices at a lower level than its competitors. Which generic strategy
it is following?
46. Which method of product portfolio analysis helps in deciding which

products are to be retained and which are not to be retained?
(B) Huge Market
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SECTION 3
FULL PAPERS
UNSOLVED
FOR PRACTICE
489
UGC NET PAPER II NOVEMBER 2017
1. Managerial economics is concerned with which combination of the
following?
(a) Investment Analysis and Decisions
(b) Production Behavior and Cost Analysis
(c) Input Reward Analysis and Decisions
(d) Economic Environment Analysis
Code:
(1) (a), (b) and (c)
(2) (b), (c) and (d)
(3) (a), (b) and (d)
(4) (a), (c) and (d)
2. When P0 and P1 and Q0 and Q1 denote before and after change in the price
and quantity respectively and in both the situations, total outlay remains the
same, which of the following formulae give the similar value of the arc price -
(a) Qo-Q1 X Po+ P1 ( b) Qo-Q1 X Po

Code:
(1) (b), (c) and (e)
(2) (a), (b) and (e)
(3) (a), (c) and (e)
(4) (b), (c) and (d)

490
3. In case the producer‟s equilibrium shifts to a higher isoquant due to decrease
in price of aninput, the curve combining the successive equilibrium positions is
known as:
4. Which one of the following statements is not correct?
(1) Marginal cost declines at a faster rate as compared to the average cost.
(2) Marginal cost rises at a faster rate as compared to the average cost.
(3) Marginal cost equals average cost where average cost is minimum.
(4) Average cost equals marginal cost where marginal cost is minimum.
5. Cost - Plus pricing is not suitable for:
6. Match the following and select the correct code of matching :

List - I List - II
(a) F.W. Taylor (i) Fair day‘s pay for fair day‘s work
(b) Henry L. Gantt (ii) Motion study
(c) Frank and Lillian Gilbreth (iii) Graphic scheduling for planning and
controlling of work
(d) Max Weber (iv) Bureaucratic organization
Code:
(a) (b) (c) (d)
(1) (i) (ii) (iii) (iv)
(2) (i) (iii) (ii) (iv)
(3) (iv) (iii) (ii) (i)
(4) (iv) (i) (ii) (iii)
7. The achievement of goals with the least amount of resources is:
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(1) Effectiveness (2) Efficiency (3) Productivity (4) Both (1) and (2)
8. Which one of the following is the fundamental rethinking and radical
redesign of business processes to achieve improvements in performance?
List - I List - II
(a) Motivating through rewards (i) Charismatic leadership and
penalties
(b) Changing organization by creating (ii) Situational leadership and
(c) Influencing by dint of personality (iii) Transactional leadership and
charm
(d) Modifying style with respect to (iv) Transformational leadership readiness
of followers
Code:
(a) (b) (c) (d)
(1) (iii) (i) (ii) (iv)
(2) (iii) (iv) (i) (ii)
(3) (iii) (iv) (ii) (i)
(4) (iv) (iii) (ii) (i)
10. Which one of the following is not a „hygiene factor‟ of Herzberg‟s Two
Factor theory?
11. Assertion (A): Promotion is a move within the organization to a higher
position that has greater responsibilities and requires more advanced skills.
492
Reasoning (R): Promotion may not involve a raise in status but a hike in salary
is a must.
Code:
(4) (A) is incorrect whereas (R) is correct.
(a) Identification of leadership potential (i) Vocational Tests
(b) Finding most suitable area of working (ii) Aptitude Tests
(c) Discovering interest and potential (iii) Intelligence

Tests for acquiring skills
(d) Measuring capacity to think, learn (iv) Personality

Tests and draw relationships
Code:
(c) (b) (c) (d)
(1) (iv) (iii) (ii) (i)
(2) (i) (ii) (iii) (iv)
(3) (iv) (i) (ii) (iii)
(4) (i) (iii) (ii) (iv)
13. Which one of the following is a facility to file anonymous complaints?
14. Which of the following is/are not gain sharing plan(s)?
(a) Scanlon Plan
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(b) Rucker Plan
(c) Employee Stock Option Plan
(d) Improshare Plan
Code:
(1) (c) only
(2) (d) only
(3) (c) and (d) both
(4) (b), (c) and (d)
15. In which one of the following methods of performance appraisal,

predetermined percentages of rates are placed in various performance
categories?
(1) Alternation Ranking Method
(2) Forced Distribution Method
(3) Paired Comparison Method
(4) Check - list Method
16. Indicate the correct code for the combination from the following regarding
the superiority of the wealth maximization over the profit maximization
objective of the financial management:
(a) It takes into account long term stability and survival of the firm.
(b) It takes care of all other objectives of the firm like exploring and expanding
markets, etc.
(c) It is based on the assumption of perfect competition in the market.
(d) It considers risk along with returns.
Code:
(1) (a), (b), (c) and (d)
(2) (b), (c) and (d)
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(3) (a), (b) and (d)
(4) (a), (c) and (d)
17. The controller function of the financial management concerns with:
(1) Advertising the public issue of the firm
(2) Negotiating with banks for loans
(3) Analyzing variance between standard costs and actual costs
(4) Estimating the future cash flows from certain project
18. Capital Asset Pricing Model (CAPM) for risk measurement has been given
by:
(1) Sharpe and Lintner
(2) Lintner and Treynor
(3) Sharpe, Lintner and Treynor
(4) Lintner, Modigliani and Miller
19. Beta (β) is a measure of:
(1) Systematic Risk (3) Total Risk
(2) Unsystematic Risk (4) Business Risk
20. Capital budgeting is concerned with:
(1) Arranging cash resources for the project.
(2) Managing the working capital of the firm.
(3) Managing the fixed assets through repairs and renewals.
(4) Evaluating the returns and investment in projects.
21. Which one of the following is the demand state where “Consumers dislike
the product and may even pay to avoid it”?
(1) Unwholesome demand (3) Negative demand
495
(2) Declining demand (4) Latent demand
22. Evaluate the statements according to Brand Asset Valuator Model of Brand
Equity:
Code:
23. If a coaching institute provides some supporting study material along with
teaching, then which one of the following service mix category would it be?
(1) Hybrid offering
(2) Major Service with accompanying minor goods and services
(3) Tangible good with accompanying services
(4) Pure service
24. Statement (I): A low market - penetration index indicates substantial growth
the market -penetration index is already high.
Code:
496
25. Which one of the following is a system of partnerships and alliances that a
firm creates to source, augment, and deliver its offerings?
(1) Value network
(2) Omnichannel marketing
(3) Integrated marketing channel system
(4) Direct marketing channel
26. Statement (I): Time study is an area of study whose fundamental purpose is
to set time standards for work using different methods.

Code:
27. Which one of the following combinations of the characteristics of the

popular layouts is not matching?

Building and small medium
Repetitive Batch batch
volume using
common
497
operations
28. In the context of distinguishing between forecasting and prediction, which

one of the following statements is false?
(1) Forecasting is based on a theoretical model while prediction may be based
on intuition.
(2) Forecasting reflects management‘s judgment after taking all available
into the future.
(3) Error analysis is possible in the case of forecasting while no error analysis is
(4) No objectivity is found in the case of prediction.
29. An activity that consumes no time but shows precedence among activities
is known as:
30. Which one of the following is not correct matching between level of facility
(1) Global level and site location and selection
(2) Macro layout level and Site planning
(3) Micro layout level and Cell design
(4) Sub - Micro layout level and work station and Cell design
31. Which one of the following statements is false?
(1) Sample space refers to the collection of all favorable outcomes of an
experiment.
(2) Collectively exhaustive events are those whose union is sample space.
(3) All the outcomes of an experiment are known as sample space.
(4) Two events are said to be independent if the happening of one does not
affect the probability of happening of the other.
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32. Which one of the following is a false statement?
(1) A binomial distribution involves infinite number of trials
(2) The mean and the variance of a Poisson distribution are equal
(3) The standard normal distribution has μ=0 and s=1
(4) The standard deviation of an exponential distribution is equal to its mean
33. In the context of coefficient of correlation (r), match the items of List - I
with the items of List - II and select the code of correct matching:
a. 1- r²
√n i. Probable error of r
b. (0.6745) 1- r²
√n ii. Coefficient of determination
c. r² iii. Standard error of r

Code:-
a b c
1. ii i iii
2. iii ii i
3. ii iii i
4. i ii iii
34. Which one of the following statements is true?
(1) If one of the regression coefficients is greater than one, the other must also
be greater than one.
(2) The product of the two regression coefficients is always more than one.
(3) Correlation coefficient is the arithmetic mean of the two regression
coefficients.
(4) The signs of the two regression coefficients are always the same.
35. In the absence of which of the following, SPSS can be used as an alternate?
(1) MS Word
(2) MS Excel
499
(3) MS Access
(4) MS Datapro
matching:-
List- I List-II
a. Merger of Vodafone and Idea (i) Business Strategy
b. Launch of Apple iPhone 7plus (ii) Operational Strategy
c. Manufacturing Samsung mobile
Code:
a b c
1. iii i ii
2. iii ii i
3. ii iii i
4. ii i iii
a. Plan
b. Problem
c. Pattern
d. Position
e. Ploy
f. Perspective
Code:-
1. a, b, c, d and e
2. a, b, d, e and f
3. b, c, d, e and f
4. a, c, d, e and f
500
Code:-
Code:-
1. Unity Strategy
4. Niche Strategy
41. Elements of entrepreneurial competencies, according to the theorist of the
(1) Body of knowledge, set of skills, cluster of appropriate motives and traits
(2) Ability to prepare viable project, executional skills and materialization of
group goals
(3) Ability to work in a group, enforce group dynamics and motivate employees
(4) Assigning priorities to hierarchy of Maslow‘s monetary needs and non-
monetary needs
42. Under the new norms of Micro, Small and Medium Enterprises
Development (MSMED) Act 2006, the criteria of investment limit in plant and
machinery for MSME falls under which one of the following category?
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(2) Micro Rs20 lakh, small Rs2.5 crore, Medium Rs5 crore
43. Entrepreneurial Judo strategy aims at which one of the following?
(1) Filling holes left by others in the industry.
(2) Developing effectiveness in the industry.
(3) Mobilizing finance and effective use to reduce NPAs.
(4) Creating competitive environment in the environment of SMMEs.
44. Preparation of a business plan as a pre-requisite to a promotion of a

business enterprise, relates to which one of the following?
(1) There are no flaws in the business idea, the fashion, conviction and tenacity
of the entrepreneur.
(2)Make arrangement for finance and prevent occurrence of NPAs by business

entity.
(3) Ensure that business entity works at break-even level.
(4) Make plan to raise finance from market and alternative investment
opportunities
45. Federation of Associations of Small Industries of India (FASII) promoted

in 1959 is which one of the following type?
(1) Government organization
(2) Liaisoning organization
(3) Small Scale unit
(4) SSI Board
502
46. Statement (I): The science of ethics is a normative science.
Statement (II): Normative sciences judge the value of the facts in terms of an
idea; concerned with judgments of „what ought to be‟ but not with factual
judgments.
Code:
47.Match the items of List-I with those of List-II and choose the correct
combination:-
List-I List-II
503
Code:-
a b c d
1. iii iv i ii
2. iii iv ii i
3. iv iii ii i
4. i ii iii iv

Code: -

a. Duty ethics
d. Classical ethics
Code: -
1. a and b
2. a and c
3. a and d
4. a, b, and c
1. Welfare
2. Duty
3. Obligation
4. Rules
504
UGC NET PAPER II JANUARY 2017
1. Indicate the correct code for the scope of managerial economics from the
following:
a. Demand Analysis
b. Production and Cost Analysis
c. Pricing and Investment Decisions
d. Factor pricing Decisions
e. Economic Environmental Analysis
Codes:
(1) a, b, c, d (2) b, c, d, e
(3) a, b, c, e (4) a, c, d, e
2. Price elasticity of demand for a product is measured by
(1) Ed = ΔQ × ΔP (2) Ed = ΔQ ÷ ΔP
Q P Q P
(3) Ed = ΔP × Q (4) Ed = ΔP ÷ ΔQ
ΔQ P P Q

change)
3. Which one of the following will be the appropriate pricing strategy for a new
4. Match the items of the List – I with those of the List – II and suggest the
correct code from the following:
i. Loss Leader a. Locational price differentials

505
ii. Unchanged Pricingb. Products with high initial demands
iii. Basing Point pricing c. Product line pricing
iv. Skimming Pricing d. Oligopoly pricing
Codes:
i ii iii iv
(1) a b c d
(2) c d a b
(3) d b a c
(4) c a b d
5. In case the firm makes varying investments on the different investment

projects, the appropriate project evaluation technique would be, which one of
the following?
(1) Average annual rate of return technique
(2) Payback period technique
(3) Net present value technique
(4) Profitability index technique
6. According to Henry Fayol, which one of the following combinations of

qualities are required in a manager?
(1) Physical, mental, experience, educational and conceptual
(2) Technical, human, conceptual, mental and moral
(3) Physical, mental, moral, educational, technical and experience
(4) Mental, moral, conceptual, educational, technical and experience
7. Neo-classical organization theory emphasizes on which one of the

following?
(1) Flat structure of organization
(2) Tall structure of organization
506
(3) Coordination by hierarchy
(4) Unity of command
8. According to Graicuna‟s formula of span of management, if a superior has

threesubordinates, what number of cross-relationships would be?
(1) Three
(2) Six
(3) Nine
(4) Eighteen
9. In Reddin‟s „Tridimensional Grid‟, which one of the following is a less

effective style of leadership?
10. Assertion (A): Attribution theory is based on relationship between

personal perception and interpersonal behavior.
depend upon cognitions, particularly perception.
Codes:
(1) (A) is right but (R) is wrong.
(2) (A) is wrong but (R) is right.
(3) Both (A) and (R) are right but (R) does not explain (A).
(4) Both (A) and (R) are right and (R) explains (A).
11. Arrange the following steps of training and development process in the right
sequence:
a. Need analysis
b. Validation
c. Evaluation
507
d. Implement the programme
e. Instructional design
(1) a, e, d, c, b (2) a, e, c, b, d
(3) a, e, b, d, c (4) a, b, e, c, d
12. Which one of the following is related to „Standard of Personnel‟?
13. If an employee desires to pay more than the minimum required contribution
under the Employees‟ Provident Fund and Miscellaneous Provisions Act,
1952, then
(1) Employer shall also pay an amount equal to the total contribution of
employee.
(2) Employer shall pay only half of the additional contribution of employee.
(3) Employer is under no obligation to pay the additional contribution.
(4) The act is silent regarding this matter.
14. Under the Employees‟ State Insurance Act, 1948, sickness benefit can be
paid for which one of the following maximum periods?
15. Which one of the following laws is enacted by the Central Government and
(1) The Employees State Insurance Act, 1948
(2) The Employees‘ Provident Fund and Miscellaneous Provisions Act, 1952
(3) Factories Act, 1948
508
(4) The Mines Act, 1952
16. The cost of external equity can be most appropriately computed as per the
(1) Earnings price ratio
(2) Dividend price ratio
(3) Dividend price plus growth ratio
(4) Capital assets pricing model
17. For the following items in List – I and List – II, indicate the correct code
after matching them:
i. Net income approach for capital structure a. Modigliani, M. and Miller

M.H.
ii. Net operating income approach for capital structure b. Robert

Bruner
iii. Irrelevance of capital structure for the value of the firm. c. Ezra
Soloman
iv. FRICT analysis for capital structure d. David Durand
Codes:
i ii iii iv
(1) a b c d
(2) d c a b
(3) d c b a
(4) b a d c
18. Which one of the following is not a feature of „Preference Shares‟?
(1) Prior claim on income / assets of the company over equity shareholders.
(2) Redeemability after certain period.
509
(3) Possessing voting rights on important issues of the company.
(4) May possess the right to participate in surplus profits of the company.
19. The basic consideration for dividend pay-out for a company excludes which
(1) Investment opportunities for the company
(2) Expectations of the shareholders of the company
(3) Legal and financial restrictions for the company
(4) Stability of the dividend considerations
20. For the following two statements of Assertion (A) and Reasoning (R)
indicate the correct code:
Maximization is an appropriate and operationally feasible financial management
goal.
Reasoning (R): There exists a principal-agent relationship between the shareholders

and the management of the company.
Codes:
(3) (A) is incorrect but (R) is correct.
21. Which one of the following components is not the part of broad marketing
environment?
(1) Technological environment
(2) Task environment
(3) Demographic environment
(4) Natural environment
22. The Coco Cola Company markets a wide range of different beverage
products including bottled water, soft-drinks, juices and sports drinks.
510
Each product appeals to a different segment. This is an example of which type
of market offering?
(1) Differentiated marketing
(2) Target marketing
(3) Undifferentiated marketing
(4) Intensified marketing
23. Temporarily reducing prices to increase short-run sales is an example of
which one of the following?
of correctmatching:
b. Brand elements i. The marketer‘s vision of what the brand must
be and do for consumers.
b. Brand line ii. All products, original as well as line and
category extensions, sold under a particular
brand name.
c. Brand personality iii. Those trademark able devices that serve to
identify and differentiate the brand.
d. Brand promise iv. The specific mix of human traits that may be
attributed to a particular brand.
Codes:
abcd
(1) iii ii iv i
(2) i ii iii iv
(3) iii i iv ii
(4) iv iii ii i
511
25. Statement – I: In developing advertising programme marketing managers
Statement – II: A company may run multiple ad campaigns at the same time,
each emphasizing different aspects of its brand and service.
a. Delphi technique i. Causal quantitative

model
b. Economic modeling ii. Quantitative model

(Naive)
c. Exponential Smoothing iii. Qualitative model
Codes:
abc
(1) i ii iii
(2) iii i ii
(3) iii ii i
(4) ii iii i
512
27. In which one of the following situations, a product-oriented layout is
appropriate?
(1) A medical clinic
(2) An automated carwash
(3) A work Centre for welding, heat treating and painting
(4) A home plumbing repair business.
28. A graphic tool to trace the interaction of several workers with one machine
is termed as
29. Which one of the following is a technique of statistical quality control used
for product control?
30. The decision-criterion in which a decision-maker selects an alternative that
31. Which one of the following expressions relates to an event which
represents the occurrence of either A or B or both?
(1) A ∪ B
(2) A ∩ B
(3) ––
A∩B
(4) (A ∩ ⁻ B) ∪ (⁻ A ∩ B)
32. A Bernoulli process has all but which one of the following properties?
(1) Each trial has two possible outcomes.
(2) The probability of a success on any trial remains fixed over time.
513
(3) The probability of success on any trial is equal to the probability of failure.
(4) Trials are statistically independent.
33. Statement – I: The product of coefficient of correlation, standard deviation
of variable „X‟ and Standard deviation of variable „Y‟ gives the measure of
Statement – II : The product of coefficient of correlation between X and Y
variable.
Codes:
34. Statement – I: Both the probable error and standard error of the coefficient
of correlation are different.
Codes:
35. Which one of the following is not the major characteristic of internet?
514
Codes:
statements:
(a) When an organization‘s survival is threatened and it is not competing
(b) Turnaround strategy is used when an organization is performing well but has
not yet reached a critical stage.
profitable.
Codes:
enter a high growth market in which there is already a market leader. Statement
– II: A “Star” is the market leader in a high-growth market, but it does not
necessarily provide much cash.

515
matching:
Codes:
abcd
(1) iv iii i ii
(2) iv i ii iii
(3) iv iii ii i
(4) iii iv ii i
40. Apple computers use a differentiation competitive strategy that
(1) Functional strategy (2) Business strategy
a. Richard Cantilloni. Entrepreneur must accept the challenge
and should be willing hard to achieve something
b. Joseph A. Schumpeter ii. Entrepreneurs are all those persons who
are engaged in economic activity.
c. J.K. Golbraithiii. Entrepreneur is a person who introduces
Codes:
516
abc
(1) iii i ii
(2) i iii ii
(3) ii iii i
(4) ii i iii
India ?
(1) 75% (2) 60%
(3) 50% (4) 25%
entrepreneur?
(1) Innovative (2) Hardworking
(3) Practical (4) Submissive
SSI sector?
(1) Power shortage (2) Lack of demand
(3) Management problems (4) Equipment problems
46. Statement – I: Ethical principles tend to be broader than legal principles.
517
Codes:
47. Assertion (A): The state shall endeavor to protect and improve the
environment and to safeguard the forest and wildlife of the country. Reasoning
(R): The Directive principles of state policy of the Indian Constitution
Command the State to ensure protection and improvement of environment and
to safeguard forest and wildlife.
Codes:
(3) Both (A) and (R) are correct and (R) is the right explanation of (A).
(4) Both (A) and (R) are correct but (R) is not the right explanation of (A).
matching:
(CSR Models) (Emphasis)
a. Ethical Model i. corporate responsibilities limited to private owners.
b. Statist Model ii. Voluntary commitment by companies topublic welfare
communities, etc
Codes:
abcd
(1) ii iii i iv
518
(2) ii i iii iv
(3) ii i iv iii
(4) i iii ii iv
recommendations on Company Law (2005) :
directors.
corporation.
Codes:
(1) (a), (b) and (c) only
(2) (b), (c) and (d) only
(3) (a), (c) and (d) only
(4) (a) and (d) only
519
UGC NET PAPER II JULY 2016
1. The following is the demand function: Q = 100 – 5P
(1) 2.00 (2) 1.00
(3) 0.85 (4) 0.50
2. The short-run cost function of a firm is as under:
TC = 200 + 5Q + 2Q2
(1) 20 (2) 15
(3) 10 (4) 5
correct matching:
a. Sales Revenue Maximization i. Williamson‟s Model
b. Maximization of a firm‟s growth rate ii. Cyert-March Hypothesis

c. Maximization of Managerial Utility function iii. Baumol‟s Theory
d. Satisficing behavior model iv. Marri‟s Theory
Codes:
abcd
(1) iii iv i ii
(2) i ii iv iii
(3) ii iii i iv
(4) iv iii ii i
4. Assertion (A): The perceived risk of operating a domestic firm in

international environment is much higher.
520
Reason (R): The international environment is more volatile and the domestic
Codes:
(3) (A) is correct while (R) is incorrect.
(4) (A) is incorrect while (R) is correct.
5. Statement – I: The accept-reject approach is adopted generally when a firm
has a large amount of funds to invest in several projects at the same time.
6. Which process is used by a person (perceiver) to deal with conflicting
7. Assertion (A): The physiological needs are essential for living but they are
Codes:
(1) Assertion (A) and Reasoning (R), both are correct, but (R) is not right
explanation of (A).
(2) Assertion (A) and Reasoning (R), both are correct, and (R) is correct
explanation of(A).
521
8. The basic emphasis of theory of organizational design is on flat
structure, decentralization and provision of informal organization.
9. The result variables as the component of mathematical model for measuring
10. Assertion (A): Reinforcement plays a central role in the learning process.
Codes:
11. Most job descriptions contain sections that cover –
12. Match the items of List – I with the items of List – II. The items relate to
a. Results i. Document the learner‟s immediate response to the training.
b. Learning ii. Note supervisor‟s reactions to learner‟s performance

following completion of the training.
522
c. Reaction iii. Use feedback devices or pre and post tests to measure what
learners have actually gained.
d. Behavior iv. Determine the level of improvement in job performance
Codes:
a b c d
(1) iii ii i iv
(2) iv iii i ii
(3) i ii iii iv
(4) iv i iii ii
13. Which one of the following processes allows top management to diagnose
the management styles of supervisors, identify potential, employee problems,
and take corrective action with individual supervisors as necessary?
(1) MBO
(2) Strategic performance appraisal
(3) Organization Development
(4) Upward feedback
14. Statement – I: In competency or skill-based pay, employees are paid for the
range, depth and types of skills and knowledge they are capable of using rather
than for the job they currently hold.
Statement – II: Broad banding results into increase in salary grades and
ranges from 3 or 5 to 10 or more.
Codes:
523
15. Which one of the following is not a labor law related to wages?
(1) The Workmen‘s Compensation Act, 1923
(2) The Payment of Bonus Act, 1965
(3) The Payment of Wages Act, 1936
(4) The Minimum Wages Act, 1948
16.Match the items of List – I with the items of List – II:
a. Net present value i. Number of years required to recover the original cash
outlay invested in a project.
b. Payback period ii. It is the rate of return which equates the present value of
anticipated net cash flows with the initial outlay.
c. Internal rate of return iii. It is found out by dividing the average after-tax
profit by the average investment.
d. Accounting rate of return iv. It is the difference between the present value of
cash inflows and present value of cash outflows.
Codes:
abcd
(1) iv iii ii i
(2) iii i iv ii
(3) iii iv i ii
(4) iv i ii iii
17. An employee borrowed a 3 year loan of ` 10,000 at 9% from his employer

to buy a motorcycle. If employer requires three equal end-of-year repayments,
then the annual installment will be .
(1) Rs3, 633 (2) Rs3, 951
(3) Rs3, 333 (4) Rs4, 233
524
a. M.M. Hypothesiswithouttaxesi. The cost of debt and cost of equity are

assumed tobe independent to the capital structure.
b. Net operating incomeapproachii. In the absence of taxes a firm‘s market

value andthe cost of capital remain invariant to the capitalstructure changes.
c. M.M. Hypothesis undercorporatetaxesiii. The cost of equity is assumed to

increase linearlywith leverage.
d. Net income approach iv. The value of the firm will increase with debt due
tothe deductibility of interest charges for taxcomputations and the value of the
levered firm willbe higher than the unlevered firm.
Codes:
abcd
(1) ii iii iv i
(2) ii i iv iii
(3) i ii iii iv
(4) iii iv i ii
19.Explicit Resale Price Valuation method pre-supposes that an investor keeps

the share only for few years and eventually sells the shares. The value of the
share, therefore, depends upon which of the following?
Codes:
(1) (I) is true, but (II) is false.
(2) (I) is false, but (II) is true.
(3) Both (I) and (II) are true.
(4) Both (I) and (II) are false.
525
20. It is an act of acquiring effective control by one company over assets or
management of another company without any combination of companies?
21.Out of the following, identify the key constituents for performance

marketing of Holistic marketing dimensions:
(a) Customers
(b) Brand and Customer equity
(c) Employees
(d) Ethics
(e) Environment
(f) Sales revenue
(g) Financial community
Codes:
(1) (a), (b), (c) and (d) (2) (b), (d), (e) and (f)
(3) (c), (e), (f) and (g) (4) (a), (c), (f) and (g)
22. Which one of the following is a potential drawback of multibranding?

(1) The company‘s resources may be spread over too many brands.
(2) Consumers may become confused about the image of the main brand.
(3) An over-extended brand name might lose its specific meaning for
consumers.
(4) Different product features can appeal to consumers with different buying
motives.
23. When a firm improves the quality and increases the price of a product in
relation to a competitor making a price reduction, the firm is
.
(1) Moving its brand into a higher price-value position
(2) Changing its target market
(3) Moving its brand into a less competitive position
(4) Adversely positioning its product
526
24. Which one of the following explains “the knowledge and courtesy of
employees and their ability to convey trust and confidence”?
a. Rich-media ads i. online ads that appear between screen
b. Pop-ups ii. Display ads that use eye-catching techniques
such as float, fly, and snapback.
c. Interstitials iii. Ads that users can block through the use of
applications developed by web browser providers.
Codes:
abc
(1) i ii iii
(2) ii i iii
(3) ii iii i
(4) iii i ii
26. Statement – I: Operation research is the application of scientific methods to
the study of alternatives in a problem situation with a view to providing
qualitative basis for arriving at an optimum solution in terms of goal sought.
Codes:
527
a. PERT i. Strategies
b. CPM ii. Events
c. Game theory iii. Network
Codes:
a b c
(1) i ii iii
(2) ii iii i
(3) iii ii i
(4) iii i ii
28. Statement – I: – X-chart, np-chart and R-chart are the techniques used for
(4) Statement – I is incorrect while Statement – II correct.
29. Statement – I: When there are a large number of decision variables (more
than three) and constraints, iterative mathematical procedures like simplex
method can be used for product-mix decisions.
528
30. In the context of work study, an element is rated as 120% and the actual
31. Which of the following sentences are true?
(i) The classical approach to probability theory requires that the total number of
equally likely.
(ii) A marginal probability is also known as unconditional probability.
(iii) For three independent events, the joint probability of the three events,
P(ABC)= P(A) × P(B/A) × P(C/AB)
(iv) Two events are mutually exclusive, exhaustive and equally likely, the
Codes:
(1) (i), (ii), (iii) and (iv) are true.
(2) (iii) and (iv) are true.
(3) (i), (ii) and (iv) are true.
(4) (i) and (iii) are true.
of correct matching in connection with probability distributions:
g. np, √npq i. Normal Distribution
h. λ,√λ ii. Binomial Distribution
i. 0, 1 iii. Poisson Distribution

Codes:-
a b c
529
1. i ii iii
2. iii i ii
3. iii ii i
4. i iii ii
33. A researcher wants to test the significance of the differences of the average
performance of more than two sample groups drawn from a normally
distributed population, which one of the following hypothesis- testing tests is
appropriate?
of their correct matching with regard to correlation and regression analysis:
b. γxyσy
b. Σ(X – –X) (Y – –Y)
c. Σ(X – –X) (Y – –Y)
variable.
d. 1 – γ2
Codes:-
a b c d
1. i ii iii iv
2. ii i iv iii
3. iii ii iv i
4. iii iv i ii
a. Stock files that are placed in warehouse as a record i. Daily report
530
b. Process of managing goods in most sensible way ii. Intranet
c. Management information system iii. Master file
d. Log-in allowed to only internal people iv. Stock control
Codes:-
abcd
(1) iii iv i ii
(2) iv iii ii i
(3) iii i iv ii
(4) i ii iii iv
36.The highly competitive industries, particularly in the early stage of product
life cycle, follow which one of the following strategies?
from several plausible alternatives, which one of the following should the
strategist integrate in decision making?
in the industry might be a better move than starting-up a new venture.
to acquisition because of differences between cultures and shared valued.
Codes:
531
decline or in few cases, industry becomes inherently unattractive.
of competitiveness among firms becomes haphazard.
decrease as the relative price of substitute products decline.
Codes:
Codes:
abcd
(1) iv i ii iii
(2) i ii iii iv
(3) ii iii i iv
(4) iii iv ii i
532
Codes:
under KVIC iii. MDA
Codes:-
a b c
1. iii i ii
2. iii ii i
3. i iii ii
4. i ii iii
533
.
Codes:
following?

following?
(4) Welfare concept
534
making?
535
1. Which one of the following assumptions is not related to consumer behavior
1. Rationality
2. Diminishing marginal utility of money
3. Utility cardinally measurable
4. Maximization of satisfaction with limited money income
Code:-
3. Match the items of List I with the items of List II and find the correct combination: -
List I List II
(a) Perfect Competition (i) Aluminum and passenger cars
(b) Oligopoly (ii) Public Utilities like Telephone and
Electricity
(c) Monopoly (iii) manufacturing: T.V. Sets, Refrigerators
(d) Monopolistic Competition (iv) Farm Products: Grains
Code:-
1. (i) (ii) (iii) (iv)
2. (iv) (i) (ii) (iii)
536
3. (iii) (iv) (i) (ii)
4. (ii) (iii) (iv) (i)
Code:-
5. Which one of the following is not covered in macro-economic?
(1) Performance of the entire economy
(2) Price and output determination of a commodity
(3) Factors and forces of economic fluctuations
(4) Monetary and fiscal policies
6. Match the below mentioned aspects with their main behavioral
disciplines:
(a) Leadership and stress management (i) Psychology
(b) Group conflict management (ii) Anthropology
(c) Cross-cultural analysis (iii) Sociology and Psychology
(d) Power (iv) Political science
Codes:
a bcd
5. iv i ii iii
6. ii iii I iv
7. i iv ii iii
537
8. iv ii iii i
7.
_.
538
(1) Lawofreinforcement(3)Lawofreproduction
(2) Law of effect (4) Law of expectations
8. The principles by which the process of perceptual organization works was first
identified by Max Wertheimer in the year .
(1) 1918 (2) 1933 (3) 1924 (4) 1923
9. The leadership theory of describes that effective group
performance depends on the proper match between the leaders‟ style if interacting with
his subordinates and the degree to which the situation gives control and influence to the
leader.
(1) Iowa State Leadership Studies‘; Ronald Lippitt and Ralph K. White
(2) Managerial Grid‘; Blake and Mouton
(3) Trait Theory‘; Stodgill and Barnard
(4) Contingency Model‘; Fred Fiedler
10. When one individual or group wins at the expense of another individual or group, it
is termed as .
(1) Zero-sum conflict (3) Line-staff conflict
(2) Non-zero sum conflict (4) Formal-informal conflict
11. Which one of the following statements is not true in the case of Human
(3) It is proactive in nature (4) It consists of various sub-systems
12. Match the items given in the ListI and ListII and choose the correct option:-
ListIListII
e. Personnel replacement chart (i) A chart prepared for each position in a

company to show possible replacement candidates and their qualifications
f. Job posting (ii) The ongoing process of systematically
identifying, assessing and developing organizational leadership to enhance
performance
g. Succession planning (iii) Company records showing
present performance and promotability of inside candidates for the most
important positions
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h. Position replacement card(iv)Publicizing an open job to employees and listing its
attributes, like qualifications, supervisor, working schedule, etc.
Codes:-
(a)(b) (c) (d)
e. (ii) (i) (iii) (iv)

f. (iii) (i) (iv) (ii)
g. (iv) (ii) (i) (iii)
h. (iii) (iv) (i) (ii)
13. Which one of the following training methods is not a managerial „on-the-job
training method?
(1) Coaching (3) Job Rotation
(2) Action Learning (4) Management Games
14. to deal with employee indiscipline provides the offender every

opportunity to state his side of the case.
(1) Punitive approach (3) Humanistic approach
(2) HRD approach (4) Judicial approach
15. Which one of the following is a disadvantage of Critical Incident Method as a tool
of performance appraisal?
(1) Difficult to rate or rank employees relative to one another
(2) Time - consuming
(3) Can cause disagreements among employees and may be unfair if all employees are,
in fact, excellent
(4) Employee‘s appraisal results depend on employer‘s choice of cut-off points
16.If raw materials are in store for 2 months, processing time 2½ months, finished goods
remain in store for 15 days, debtors are allowed 60 days‟ credit and credit received
from suppliers of raw material is one month, the operating cycle period is:
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17. Which of the following is not general disclosure requirement under accounting
standard-14?
(1) Name and nature of Business (3) Accounting method followed
(2) Description and number of shares issued (4)Particulars of scheme sanctioned
18. Under the Modified Accelerated Cost Recovery System (MACRS) an asset in the
“5 year property class” would typically be depreciated over how many years?
19. According to the concept of financial signaling, management behavior results in

new debt issues being regarded as “ news” by investors.
20. The Exchange of interest and/or principal payment between two parties is called:
21. From the following set of information, which combination is correct to define the
process of perception in order to understand consumer behavior?
(a) Selective Attention (c) Selective Retention
(b) Selective Distortion (d) Selective Apprehension
Code:
(1) Only (a) and (d) are correct (3) Only (b), (c) and (d) are correct
(2)Only (a), (b) and (d) are correct (4)Only (a), (b) and (c) are correct
22. When the company‟s Salesperson contacts the customer from time to time with
Suggestions about improved uses of the product or additional new range of products,
then it is called as:
(1) Proactive Marketing (3) Reactive Marketing
(2) Accountable Marketing(4) Relationship Marketing
23. A state of demand where major part of the market dislikes the product and may
even pay a price to avoid it, may be called as:
(1) Declining Demand (3) Negative Demand
(2) Overfull Demand (4) Distractive Demand
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24. When the Companies pay less attention to its own costs or demands and bases its
price largely on competitors‟ prices, then it is known as:
(1) Value pricing (3) Image pricing
(2) Going rate pricing (4) Psychological pricing
25. from the given columns which of the combinations best describe the concepts of
product hierarchy?
(a) Need family
(b) Product family
(c) Product class
(d) Product line
(i) The core need that underlines the existence of a product family
(ii) Group of items within a product line that share one of several possible forms of the
product
(iii) Group of products within the product family recognized as having a certain
functional coherence
(iv) All the product classes that can satisfy a core need with reasonable
effectiveness
Code:
(1) Only (a) - (i), (b) - (iv) and (c) - (iii) are correct
(2) Only (a) - (i), (b) - (iii) and (c) - (iv) are correct
(3) Only (b) - (iv), (c) - (iii) and (d) - (ii) are correct
(4) (a) - (i), (b) - (iii), (c) - (ii) and (d) - (iv) are correct
26. An input (such as variable cost per unit or fixed cost) for a model is an example of
a(n) ?
(1) Stochastic variable (3) Algorithm
(2) Decision variable (4) Parameter
27. Match the items of List I and List II and indicate the correct code: List
I List II
(a) Capacity planning (i) Setting policy guidelines and procedural details
of making a watch
(b) Quality Management (ii) the steering of the cars loaded in trucks reaches the
assembly line every morning and evening
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(c) Process Design (iii) Establishing rules and policies of which tablets are to be
accepted and others not to be
(d) Location and Layout of (iv) A hospital can largely serve 500 patients at
any time facilities
Code:
(a) (b) (c) (d)
(1) (iv) (iii) (i) (ii)
(2) (iv) (i) (iii) (ii)
(3) (ii) (iii) (i) (iv)
(4) (ii) (i) (iii) (iv)
28. Car enters the drive-through of a fast food restaurant to place an order, and then it
proceeds to pay for the food, and pick up the order. This is an example of:
29. A manufacturer is considering five alternative locations for setting up its factory.
Using the information given in the table obtain a ranking and tell the best location for
setting the factory?
Table:
Factors Relative Location Location Location Location Location
Weight 1 2 3 4 5
Availability 0.28 20 40 55 35 60
of
Infrastructure
Size of 0.18 30 30 80 60 40
Market
Industrial 0.15 80 30 50 60 50
Relation
Tax Benefits 0.09 80 20 20 20 10
Availability 0.09 70 70 50 50 45
of cheap
Labor
Nearness to 0.20 20 40 60 50 90
port
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Code:
(1) Location 2 (3) Location 4
(2) Location 3 (4) Location 1 and Location 5
30. If the project completion time is normally distributed and the due date for the
project is greater than the expected completion time, then the probability that the project
will be finished by the due date is:
(1) Undeterminable without more information
(2) less than 0.50
(3) Equal to 0.50
(4) Greater than 0.50
31.Match the items of List – I with those of List – II and choose the correct code:
List – I
(a) The probability of two events occurring together or in succession
(b) The probability of occurring one event given that another event has occurred
(c) The probability of occurring a single event
(d) The probability revised in the light of additional information
List – II
j. Marginal probability
ii. Posterior probability
iii. Subjective probability
iv. Joint probability
v. Conditional probability
Code:-
A b c d
1. iv v i iii
5. v iv ii iii
6. v iv iii i
7. iv v i ii
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32. Consider the following statements relating to correlation and regression analysis:
Statement I: Correlation is independent of change of scale, but not of origin Statement II:
Correlation denotes co-variability between the variables
Statement III: Regression is a relative measure of relationship between variables
Statement IV: Regression is independent of change of origin but not of scale
(1) Statements I, II and IV are correct
(2) Statements II, III and IV are correct
(3) Statements II and III are correct
(4) Statements II and IV are correct
33. Which of the following is not a technology driver for an information system?
34. NegandhiEstafen‟ is recognized as a good model for the analysis of:
(1) Organizational effectiveness
(2) Management effectiveness
(3) Organizational growth
(4) Organization behavior
35. A self-contained internet program designed to be used in a specific
environment is:
36.A company manages multiple strategies for it‟s multiple markets and multiple
products through which one of the following?
(1) Strategic Planners (3) Strategic Windows
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(b) Product Adaptation Strategy(ii) Perceived and demonstrable superior products

Code:
a b c d
1. iii ii i iv
2. ii iii iv i
3. i ii iii iv
4. ii iii i iv
38. Only diversified company with a balanced portfolio can use its strengths to truly
capitalize on its growth opportunities. Hence the balanced portfolio contains:
39. Porter‟s Generic Strategies identified three basic categories of strategies to
include which one of the following combinations?
(3) Specific strategic issues, vertical integration strategies and supply strategy
40. The stages of corporate development provide a way for the strategic manager to
analyze:
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sickness?
Code:
42. Statement (I): - “Motivation is a continuous, complex and dynamic process”.
Statement (II):- “As compared to other industries, extra motivation is required in service
sector industries”.
43. Assertion (A):- The function of entrepreneurs is to reform or revolutionize the
pattern of production by exploiting an invention or, more generally, an untried
technological possibility for producing a new commodity or producing an old one in a
new way.
Reasoning (R): - Lack of innovations will usually reduce the life span of a product and/or
service.
Code:
(1) Assertion (A) and Reasoning (R), both, are correct, and (R) is correct explanation of
(A).
(2) Assertion (A) and Reasoning (R), both, are correct, but (R) is not right explanation
of (A).
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44. A business idea becomes a good business opportunity when it covers which four of
the following?
Code:
(1) (a), (b), (d) and (e) (3) (a), (d), (e) and (f)
(2) (a), (b), (e) and (f) (4) (b), (c), (e) and (f)
Code:
1. (a), (b), (c) and (d)
2. (a), (b), (c) and (e)
3. (a), (b), (c) and (f)
4. (a), (b), (d) and (f)
assessment of and reporting in some meaningful, definable domain of the company‟s
activities that have social impacts.
Reasons (R): The Companies Act 2013 has accorded statutory recognition of the social
responsibility of a corporate entity and gives option to provide a percentage of profit for
the purpose as per discretion of the board.
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Code:
1. Both (A) and (R) are correct, and (R) is the right explanation of (A).
2. Both (A) and (R) are correct, but (R) is not the right explanation of (A).
3. (A) is correct but (R) is not correct.
4. (R) is correct but (A) is not correct.

(1) The managers should be open to share his/her corporate secrets, individual traits
with external agencies.
(2) The managers be free and open to share his individual knowledge and experience for
community‘s gain.
(3) A person‘s action is ethical only if that person is willing for that same action to be
taken by everyone who is in a similar situation.
(3) It focuses on purpose of each action and judges the consequences of an action.
49. Assertion (A): Deontology is duty-based ethics. It is an approach to ethics that

addresses whether the motives behind certain action are right or wrong.
Reason (R):Deontology focuses on whether the results of the actions are right or wrong.
Code:
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50. Assertion (A) : Rules notified by the Ministry of Corporate Affairs (MCA) Sec. 149
of the Companies Act mandates that a listed company having a paid up share capital of
Rs100 crore or more shall appoint at least one woman director on its board.
Reasons (R):The corporate entities wanted to enhance gender equality and woman
empowerment in corporate governance and company administration.
Code:
550
1. If the demand for using the Noida express way is given by:
Q= 40,000-2500P
Where Q is the number of users (vehicles) and P is the amount of toll collected per unit
who uses the express way. In light of this information which of the following is true:
(1) At P=Rs 6 and Q=14,000; demand is price inelastic.
(2) At P=Rs7 and Q=16,500; demand is unitary elastic.
(3) At P=Rs4 and Q=9,500, demand is price elastic.
2. If a 100% scale-efficient plant has 92% technical efficiency and 88.5% allocative-
efficiency, then its overall efficiency will be:
(1) 88.5% (2) 90.25% (3) 93.0% (4) 81.42%
3. The market share data for an industry, comprising five companies, is given below:
A 35
B 25
C 18
D 12
E 10
This industry‘s three-firm Herfindahl-Hirschman index shall be:
(1) 0.234 (2) 0.217 (3) 0.151 (4) 0.0175
4. For economy which consists of single automobile maker and that in year 2014,
30,000 vehicles are produced with an average price of ` 5 lakh. For this economy what
would be the increase in the nominal GDP for 2015 compared with 2014 with the 4%
greater automobile production and 8% inflation.
(1) 4.0% (2) 12.0% (3) 6.0% (4) 12.32%
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5. Demand policies targeted to reduce the unemployment become ineffective in
presence of the following:
(1) Vertical Phillips curve
(2) Money illusion and ignorance among workers
(3) Horizontal Phillips curve
6. An individual‟s involvement with, satisfaction and enthusiasm for, the work he

does, is known as:
(1) Employee engagement (3)Job satisfaction
(2) Job involvement (4) Organizational commitment
7. Which of the following is not perceived as the basic element of motivation?
8. A theory of motivation that is concerned with the beneficial effects of intrinsic
motivation and the harmful effects of extrinsic motivation is termed as:
(1) Cognitive Evaluation Theory (3) Self-determination Theory
(2) Self-efficiency Theory (4) Two-factor Theory
9. Match the items of List I with those of List II.
List I List II
(b) Anthropology (i) Attitude change
(b) Psychology (ii) Attitude measurement
(c) Social psychology (iii) Conflict
(d) Sociology (iv) Organizational culture
Codes:
(a) (b) (c) (d)
(1) (i) (ii) (iii) (iv

(2) (iv) (ii) (i) (iii)
(3) (iv) (ii) (iii) (i)
(4) (ii) (iv) (iii) (i)
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10. A relatively stable set of characteristics that influence an individual‟s behavior is
known as:
11. Assertion (A): The more differentiated the HR environment, the more

12. Which one of the following is a type of interview where a series of job-related
questions are asked that focus on how the candidate would behave in a given situation?
(1) Behavioral interview (3) Situational interview
(2) Job-related interview (4) Structured interview
13. Consider the following statements:
(a) Sensitivity training was developed by Kurt Lewin
(b) In-basket exercise is a simulated training method
(c) Depth interview is also known as Directive Interview
(d) Job evaluation is carried out for promoting job satisfaction
Which of the above statements are true?
(1) Only (a) and (c) (3) (a), (b) and (c)
(2) Only (a) and (b) (4) (b), (c) and (d)
14. Behaviorally Anchored Rating Scale (BARS) consists of the following steps:
(a) Reallocate incidents
(b) Develop performance dimensions
(c) Generate critical incidents
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(d) Develop final statements
(1) (a), (b), (c), (d) (3) (c), (b), (a), (d)
(2) (b), (c), (a), (d) (4) (a), (c), (b), (d)
15. Consider the following elements:
Which of these are not the elements of John Dunlop‟s Framework of Industrial
Relatives System?
16. State the price of the share for the year t, if the rate of growth of the firm is 10%,
EPS and DPS for the year t11, are ` 3 and ` 2 respectively and the investors‟ required
rate of return is 20%.
(1) Rs30 (2) Rs20 (3) Rs25 (4) Rs10
17. In which of the following appraisal criteria of capital budgeting, the use of
varying opportunity cost of capital as a discount factor is possible?
(a) NPV (b) IRR (c) Pay-back Period (d) ARR
(1) Only (a) is correct. (3) (b) and (d) both are correct.
(2) (a) and (b) both are correct. (4) Only (c) is correct.
18. According to the CAPM model, the cost of equity is represented by:
(1) Rm1 (Rm2Rf) bj (3) bj1(Rm2Rf)Rm
(2) Rf1(Rm2Rf)bj (4) Rm1Rf1bj
Where R indicates market rate of return, R indicates risk free rate of return and b
indicates beta of stock j
19. Anticipated annual dividend divided by the market price of the stock is
referred as:
(1) Dividend Pay-out (3) Return on Equity
(2) Dividend yield (4) Regular dividend
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20. If the existing shareholder does not exercise his/her right or does not sell the
right entitlement:
(1) his/her wealth will remain unaffected
(2) his/her wealth will increase
(3) his/her wealth will decrease
(4) his/her wealth may increase or decrease
21. What are the four main components of holistic marketing?

(1) Integrated Marketing, Internal Marketing, Product Positioning and Performance
Marketing
(2) Integrated Marketing, Relationship Marketing, Social Marketing and Performance
Marketing
(4) Relationship Marketing, Integrated Marketing, Internal Marketing and Social
Marketing
22. Which of the following category of goods and services is most likely to require an
aggressive use of the selling concept?
(1) Complementary Goods (3) Specialty Goods
(2) Luxury Goods (4) Unsought Goods
23. The type of marketing that is the most recent to emerge is:
(1) Person marketing (3) Services marketing
(2) Product marketing (4) Social marketing
24. According to the theory, marketers can enhance demand for a

product by associating it with strong drives, using motivating cues and providing
positive re-enforcement.
(1) Demand theory (3) Psychological theory
(2) Learning theory (4) Two-factors theory
25. The most scientifically valid research is:

(1) Experimental Research (3) Focus-Group Research
(2) Observation Research (4) Survey Research
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26. Which of the following statements is not correct?
(1) Product Layout generally has continuous and Mass Production, mainly assembly
function.
(2) Process Layout generally has Intermittent, Job-Shop, Batch Production, mainly
(3) Product Layout usually has general purpose equipments.
(4) Process Layout is generally driven by fluctuating demand.
27. Six-SIGMA quality indicates:

28. A manufacturing firm has four work stations, A, B, C and D in series with
individual capacity of processing 450, 390, 360 and 400 units per day respectively and
the actual output of the firm is 306 units per day. The system capacity and system
efficiency of the firm shall respectively be:
(1) 400 and 100% (2) 450 and 120%
(3) 360 and 85% (4) 390 and 95%
29. In the simplex method of solving an LP Problem, the product-mix column of the
initial solution contains:
(1) Artificial variables only (3) Slack and artificial variables only
(2) Slack variables only (4) Real variables only
30. If the optimal solution of an LP Problem is degenerate then:
(1) The problem has multiple optimal solutions
(2) The solution is not feasible
(3) The solution is useless to the manager
31. If your score in an exam was 80, with a mean of 60, what would be the
(1) 1.33
(2) 1.25
(3) 1.52
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(4) 1.72
32. Spurious relationship between two variables refers to:
(3) Relationship happens only due to third variable which is common to both the
variables.
33. In a medical test, where the null hypothesis is: „The patient does not have the
disease‟ and the alternative hypothesis is: „ the patient has the disease‟. Suppose apatient
has a disease and needs treatment. In the hypothesis testing process, which of the
following errors is more serious than the others?
(2) Type - II error (4) r - error
34. Decision support system does not use:
(3) File server
35. Give the correct order of the stages in System Development.
(1) Testing---->Programming---->Systems----->Design---->Systems----> Analysis----
(4) Productionand Maintenance---->Testing---->Conversion----->Programming ----
>Systems Design---->Systems Analysis
(1) Balanced score cards always report using the same time periods as the financial
accounting system.
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(3) Organizations sometimes use a ―traffic light‖ system on their balanced score card to
help them priorities their activities.
37. What metaphor is used to describe the competitive space where product are not yet
well defined, competitors are not well-organized and the market is relatively unknown?
(1) Blue Lagoon
(2) Blue Ocean
(3) Red Sea
(4) Red Ocean
(1) Differentiation (Best Value). Differentiation (Low Cost), Cost Leadership (Large),
Cost Leadership (Small), Focus
(2) Focus (Large), Focus (Small), Cost Leadership (Small), Cost Leadership (Large),
Differentiation
(3) Cost Leadership (Low Cost), Cost Leadership (Best Value), Differentiation, Focus
(Low Cost), Focus (Best Value)
(4) Cost Leadership (Large), Cost Leadership (Small), Differentiation (Large),
Differentiation (Small), Focus
(2) Deciding whether the activity should be performed within the organization or by a
different firm.
(3) Deciding whether to locate operation in the home country or in a foreign location.
(4) Deciding whether to share certain activities across different products and markets.
40. “Pepsi Co launched a hostile takeover of Pepsi Bottling Group after its $ 4.2 billion
offer was rejected”. Which strategy was used in this case?
(1) Market Penetration (3) Horizontal Integration
(2) Backward Integration (4) Forward Integration
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41. Who viewed entrepreneur as a non-fixed income earner with known costs of
production but uncertain income and therefore, operating at a risk?
(1) Adam Smith (2) Richard Contillon
42. Which one of the following is not a major area of entrepreneurial innovation as
suggested by Joseph Schumpeter?
43. Which one of the following types of entrepreneurs are not proactive in nature and
does not respond much to changes in the environment?
44. SFURTI (Scheme of fund for regeneration of traditional industries) is implemented
by:
45. According to the Tiwari Committee report, which one of the following is not an
internal cause of industrial sickness in India?
46. Which of the following is/are the component(s) of Ethics by field of interest?
47. What is the right sequence of four psychological sub-processes in ethical action
given by James Rest?
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48. A new approach Learning Model” which is helpful to strengthen the decision
making process was developed by:
(1) Arthur Rich
(2) Bob Garratt
(3) Christian Wolff
(4) Lord Keynes
49. Assertion (A): Corporate behavior towards stakeholders is an important concept in

practice and a central part of corporate Governance.
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1. In the market-oriented system, for the allocation of resources which one of the
following is the most appropriate conveyor of information?
2. A company supplies 20 units of a particular product per month, at a price of Rs 10
per unit. If price elasticity of supply is 5, how many units would the company supply at
a price of Rs15?
(A) 50 (B) 70
(C) 40 (D) 5
3. Which characteristic is not likely to be a part of perfect competition?
4. Match the items given in List – I and List – II by considering which of the following
are macroeconomic issues and which microeconomic ones are:
a. The level of government revenue i. Microeconomic
b. The rate of inflation ii. Macroeconomic
c. The price of T.V. set
d. The amount saved last year by households
Codes: -
abcd
(A) ii i iii
(B) ii i ii i
(C) i ii iiii
(D) ii iii ii
5. In the recent years, world economy has witnessed the influence of
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6. Rita, a young enthusiastic manager has joined an organization as a project
coordinator. The project head counsels her to socialize less with non-management
employees; whereas the product head tells her to learn more about market issues. She
should socialize more with the non-management employees. Rita is confused, she is
facing
7. List – I consists of Motivation theories and List – II consists of the Motivation
theorists. You have to match them and indicate the correct match as per code:
a. Two-factor theory i. David McClelland
b. ERG theory ii. Fredrick Herzberg
c. Theory X and Theory Y iii. Douglas McGregor
d. Need theory iv. Clayton Alderfer
Codes:
abcd
(A) ii iv iii i
(B) i ii iii iv
(C) i iv ii iii
(D) iv iii ii i
8. The conflict over content and goals of the work is called
9. theory of motivation ignores the inner state of the individual and
concentrates solely on what happens when he or she takes some action.
10. In the “Big Five” personality factors widely accepted personality traits are
mentioned. The trait of being dependable, organized, conforming and persevering on
tasks is called
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11. Given below are four statements. Some of the statements are incorrect. You have to
choose the correct one.
(A) A satisfied employee is a motivated employee.
(B) Employees who are happy ―being around‖ are good contributors to the organization.
(C) Motivated employees do not need engagement.
(D) Customer loyalty has been found to be positively correlated with employee
engagement.
12. The author of the book „The World is Flat: A Brief History of the Twenty First
Century‟ is
13. ESOP stands for and was developed by
(A) Employee Stock Ownership Plans; Wallace Forbes
(B) Employee Stock Ownership Programs; Louis Kelso
(C) Employee Stock Ownership Plans; Louis Kelso
(D) Employee Share Ownership Programs; Louis Kelso
14. Match items given in List – I, with those in List – II:
a. Predictive analytics to help
anticipate the result of HR
strategy i. Job Specification
b. Statement of purpose, scope,
duties, task and
responsibilities of job ii. Ernest J. McCormick
c. Position Analysis
Questionnaire iii. Job Description
d. Statement of qualifications and
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qualities required of an
employee to be successful iv. Workforce Analytics
Codes :
abcd
(A) iv iii ii i
(B) i ii iii iv
(C) i iv ii iii
(D) ii iv i iii
a. Procedural Rules i. An interim or final determination of
any industrial dispute
b. Managerial Aspects ii. Terms and conditions of
employment and control on
c. Substantial Rules iii. Mechanism of dealing with
interpretation and implementation of
agreements
d. Award iv. Assignment of work and adjustment of
workforce
Codes:
abcd
(A) iv ii i iii
(B) iii iv ii i
(C) i ii iii iv
(D) ii iii iv i
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16. Consider the following two statements:
Statement I:Bond value would decline when the market rate of interest rises. Statement
II: There is a positive relationship between the value of a bond and the interest rate .
Codes:
(A) Statement I and Statement II both are correct.
(B) Statement I is correct, but Statement II is incorrect.
(C) Statement II is correct, but Statement I is incorrect.
(D) Statement I and Statement II both are incorrect.
17. Match the following techniques of capital budgeting given in List – I, with one of
the Characteristics given in List – II and select the correct code:
List – I
a. NPV
b. IRR
c. Profitability Index
d. Payback period
List – II
i. Under certain circumstances its reciprocal is a good approximation of the rate of
return.
ii. Shareholder‟s wealth maximization
iii. Possibility of multiple outcomes in single calculation
iv. Measure of projects‟ relative profitability
Codes:
a b c d
(A) i ii iii iv
(B) ii iii iv i
(C) iii iv i ii
(D) iv I ii iii
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18. In the case of redeemable debentures issued at discount and to be redeemed at par,
approximate cost of debenture (before tax adjustment) will be equal to
(A) Rate of interest
(B) Amount of interest divided by issue price
(C) Amount of interest divided by par value
(D) Amount of interest+ [par value – issue price]

Tenure of debenture
-----------------------------------------------------------------
19. While granting the term loan, if lending institution puts a condition to reduce the
debt equity ratio by issuing additional equity share-capital or preference share capital, it
is known as
(A) asset-related restrictive covenant
(B) Cash flow related restrictive covenant
(C) Control related restrictive covenant
(D) Liability related restrictive covenant
20. According to Lintner‟s model of corporate dividend behavior, the dividend for the
year„t‟ is dependent on:
I. earnings per share for the year t
II. Dividend per share for the year t-1
III. Adjustment rate
IV. Target pay-out ratio
V. market price of share
(A) I, II and III are correct.
(B) II, III, IV and V are correct.
(C) I, II, III and IV are correct.

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(D) I, II, IV and V are correct.
21. Which of the following concepts holds that consumers prefer the products
which are easily available and are inexpensive?
22. is the added value endowed to a product or service.
(A) Brand equity (C) Brand loyalty
(B) Brand image (D) Brand preference
23. Match the items/persons included in List – I with the items in List – II and indicate
the correct pairing through codes given below:
a. CCI i. Consumer buying decision process
b. Cognitive dissonance ii. Marketing Myopia
c. Everett M. Rogers iii. Diffusion of Innovation
d. Theodore Levitt iv. iv. Predatory Pricing
Codes:-
a b c d
(D) iv iii ii i
(E) iii iv ii i
(F) i ii iv iii
(G) iv i iii ii
24. The step after „concept testing‟ in the new product development process is
(A) Business analysis (B) Marketing strategy development
25. When the total market expands, the usually gains the most.
(A) Market challenger
(B) Market leader
(C) Market follower
(D)Market niche
26. „Large output per unit of space‟ is an orientation of which type of plant layout?
(A) Product layout
(B) Process layout
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(C) Fixed-Position layout
(D) Cellular layout
27. Which of the following steps is the first step in production scheduling?
(A) Sequencing
(B) Loading
(C) Expediting
(D) Classifying
28. A defence equipment manufacturing company uses bolts at a constant rate of 10000
kg per year. The bolt cost ` 80 per kg and the company estimates that it costs Rs400 to
place an order and the carrying cost of inventory is 10 percent per year. How frequently
should orders for bolts be placed?
(A) 5
(B) 10
(C) 15
(D) 20
29. The number of allocated cells in the optimal solution table of a transportation
problem having m origins and n destinations is
(A) m + n – 1
(B) m + n –1 or more
(C) m + n –1 or less
(D) m + n
30. The co-efficient of artificial variable in a Maximization problem of LP is

(A) M
(B) –M
(C) 0
(D) 1
31. If p = 0.6 for a particular Bernoulli process, the calculation ( 8! ) (0.6)5 (0.4)3
indicates 5!*3!
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32. Chebyshev‟s theorem provides that at least 89% of the values will lie within ± 3
standard deviations from the mean for
33. How many degrees of freedom should be used to apply chi-square test statistic on a
contingency table, having 5 rows and 4 columns?
(A) 20
(B) 12
(C) 7
(D) 9
34. The and its alternative provide the ability to serve dynamic content to
browsers.
(B) Cryptography
35. Which is the most suitable domain extension for an Indian NGO to do e business?
(A) .gov
(B) .com
(C) .org
(D) .us
36. At which level in the company should market-oriented strategic planning begin?
(A) Corporate level
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(B) SBU level
(A) A group of firms following the same strategy in a market is called a ‗strategic
group‘.
38. In India Proctor & Gamble (P & G) (Home products division) is following the
strategy of
(A) Cost leadership
(B) Differentiation
39. Today, mobile phones have many features such as camera, GPS, Internet, music
and videorecording. This is an example of
40. An organization that is downsizing to reduce cost is implementing a strategy of
(A) Growth
(B) Focus
(C) Renewal
(D) Stability
(A) Daniel Goleman
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(D) Warren Buffet
(A) DhirubhaiAmbani
(B) Shiv Nadar
(C) K. Anji Reddy
(D) G.D. Birla
43. Which of the following is not a possible route to market entry for a small business
owner/entrepreneur?
(A) Franchise
(D) Buy-out
44. The number of items which can be exclusively manufactured in the small scale
sector are
(A) 20 items
(B) 35 items
(C) 50 items
(D) 62 items
45. Which of the following is an external reason for the sickness of a small business?
46. In view of competitive global economy, corporations are involved in cost cutting,
corporate restructuring, mergers and acquisitions and downsizing. All these activities
can be carried out successfully only if there is proper
(A) Business Ethics
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(B) Ethical Audit
Statement (B): Law represents a minimum set of standards for regulating human behavior
in society.
(C) Cyber Law
(D) E-commerce Law
a. Transparency i. All stakeholder groups have the opportunity to

maintain or improve their well-being.

c. Sustainability iii. Information freely available and directly

accessible to interested parties.
d. Accountability iv. The effect which action taken in the

present has upon the options available in the future.
Codes:-
572
abcd
(A) iii i iv ii
(B) i ii iii iv
(C) ii iii i iv
(D) iii i ii iv
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1. In case the price (P), quantity (Q), and changes (Δ) are represented by respective
symbols given in the brackets, the price elasticity of demand (Ed) is measured by
(A) Ed = ΔQ / PΔ
(B) Ed = (QΔ/Q) / (PΔ/P)
(C) Ed = ΔP/ΔQ
(D) Ed = (ΔP/P) / (ΔQ/Q)
2. Law of Diminishing Return applies when the gaps among the successive
(C) Increases(D) remains irregular
3. In case the demand elasticity under imperfect competition is unity, the marginal
revenue will be
(A) more than utility, but less than infinity.
(B) Equal to unity.
(C) less than unity, but more than zero.
(D) Equal to zero.
4. Rise in general price level along with declining output in the economy is called
5. National income equilibrium is not at the level where
(A) Aggregate investment equals aggregate savings
(B) Aggregate expenditure equals aggregate income
(C) Inflationary and deflationarygaps are absent
(D) Aggregate consumption is constant
6. Which of the following is a correct match?
(A) McClelland – ERG Theory
(B) Skinner – Reinforcement Theory
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(C) Vroom – Equity Theory
(D) Locke – ExpectancyTheory
7. The study of gestures and body postures for their impact on communication is known
as
8. According to Organizational Culture Inventory (OCI), an organization in which
members are encouraged to work together in ways that meet higher order human needs
is classified as having a culture.
9. A matrix structure of organization
(A) Reinforces unity of command
(B) is inexpensive
(C) is easy to explain to the employees
(D) Gives to some employees more than one boss
10. Organizational development (OD) is a planned change plus
(A) Evaluation
(B) Intervention
(C) Ability for self-renewal
(D) Reinforcement
(Concept) (Term)
a. An ongoing and formalized effort that focuses on
developing enriched and more capable workers i. Direction phase
b. A career development activity in which
the advancementpotentialofsubordinatesii. Careerdevelopment
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c. A career development activity that focuses
on preparing people to fill executive positions iii. Promotabilityforecast
d. Determining the type of career that
employees want and the steps they must take to realise
their career goals iv. Succession planning
Codes:
abcd
(A) i ii iii iv
(B) ii iii iv i
(C) ii iii i iv
(D) i iii ii iv
12. A formal explanation of the knowledge, skills, abilities, traits and other
characteristics necessary for effective job performance is known as
(A) Job Description
(B) Job Analysis
(C) Job Specification
(D) Job Enrichment
13. aims to reduce reliance on arbitrary methods of pay determination by
introducing an element of objectivity in the way jobs are compared.
(A) Performance appraisal
(B) Job evaluation
(C) Job enrichment
(D) Attrition
a. The process of examining how
work creates or adds value to the
ongoing processes in a business i. Job Enrichment
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b. A fundamental rethinking and
radical redesign of business processes
to achieve dramatic improvements in
c. The process of organising work
into the tasks required to perform a specific
task iii. Work flow analysis
d. The process of putting specialized
tasks back together so that one person is
responsible for producing a whole
product or an entire service iv. Business process reengineering (BPR)
Codes:
abcd
(A) i ii iii iv
(B) ii i iv iii
(C) iii iv i ii
(D) iii iv ii i
15. The process of reorganizing a company‟s employees to improve their efficiency is
termed as
(A) Right sizing
(B) Down sizing
(C) Retrenchment
(D) Lay-offs
16. The value of a bond with a given maturity period is
(A) Present value of maturity value of the bond
(B) Present value of annual interest plus present value of maturity value
(C) Total amount of interest plus the maturity value received
(D) Maturity value received

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17. The capital budgeting appraisal criterion that is most appropriate in the situation of
capital rationing will be
(A) Payback period
(B) Internal Rate of Return
(C) Net present value
(D) Profitability index
18. For computation of cost of equity, arrange the following measures in the ascending
order of accuracy:
I. Capital Asset Pricing Model
II. Dividend-Price Ratio
III. Earning-Price Ratio
IV. Dividend-Price plus Growth Ratio
Codes:
(A) I ---> III ---> II ---> IV
(B) IV --->I --->III ---> II
(C) III ---> II ---> IV ---> I
(D) II ---> IV ---> I ---> III
19. Match the items given in the two lists:
a. Debt securities without any explicit interest rate i. Floating Rate Bonds
b. Company issuing such bonds experiences less financial distress ii. Zero-coupon
bonds
c. Coupon rate quoted as mark-up on the given rate iii. Income Bonds
Codes:
abc
(A) i ii iii
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(B) i iii ii
(C) ii iii i
(D) iii i ii
20. Which one of the following types of working capital is financial through a portion
of long-term funds?
(A) Gross working capital
(B) Net working capital
(C) Floating working capital
(D) Regular working capital
21. In the model of consumer adoption of new products developed by Everitt M.

Rogers, the first category of people to adopt a new product is called:-
(A) Early Adopters
(B) Initial Adopters
(C) First users
(D) Innovators
22. PepsiCo used to enter the Indian market in the early 1980s.
23. Pricing decisions are most complex at which stage of the product life cycle?
24. Branding seeks

(A) To differentiate the product
(B) To charge differential price
(C) To sell the product in different countries
(D) To give attractive name to a product
25. The most widely used method of collecting the primary data is
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26. If the EOQ for an item of inventory in a firm is 1000 units, the estimated demand
for the term next year gets doubled, what shall be the revised EOQ next year, all
other relevant costs remaining unchanged ?
(A) 1000
(B) 1414
(C) 2000
27. From the following two statements, choose the correct answer:
Statement I : A person can have one utility curve for one situation and a quite
different one for the next situation.
Statement II : Business executive with a linear utility curve can effectively use
Codes:
(A) Statement I is true, but II is false.
(B) Statement I is false, but II is true.
(C) Both the Statements I and II are true.
(D) Both the statements I and II are false.
28. Which of the following is not included in the Five-p model of transformation
organization used in the Production and Operations Management?
(A) People
(B) Plant
(C) Production
(D) Programmes
29. Demand forecasting through “Survey of Buyer‟s Intentions” is not suited for
which type of products?
(A) ‗Convenience goods‘
(B) Industrial products
(C) New products
(D) Consumer durables
30. The names of certain reputed authors and their works are listed in the following
lists. Match the names and their works in the correct order:
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a. Elwood S. Buffa and Rakesh K. Sarin i. A Behavioral Theory of the Firm
b. Richard M. Cyert and James E March ii. Introduction to operations research
c. Martin K. Starr and D.W. Miller iii. Production and Operations Management
d. J.M. Juran iv. Quality Control Handbook
e. Hillier and Leiberman v. Inventory Control: Theory and Practice

Codes:
abcde
(A) i ii iii iv v
(B) ii iii iv v i
(C) iii iv i ii v
(D) iii i v iv ii
31. What is the probability of a value, chosen from a population, is less than its
median?
(A) 1.0 (B) 0.75
(C) 0.50 (D) 0.25
32. If in a given Binomial distribution with „n‟ fixed and P < 0.5, then
33. What separates the physical aspects of data storage from the logical aspects of data
representation?
34. The components of E-business model are
i. Web Server
ii. Web Master
iii. Internet
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Codes:
(A) i, ii, iii & iv
(B) i, ii & iii
(C) i & iii only
(D) iii only
35. The simple probability of the occurrence of an event is called the

ii. Liquidity risk is the risk onaccount of the mismatches ofcash inflow and outflow in
afirm.
iii. Basic risk is the risk in a firmowing to the differences in theindex to which financial
assetsand liabilities are tied up.
iv. Forward rate agreement is acontract where a borrower /lender locks the interest
rateand protects itself from the losson account of change in thefuture interest rate.
Codes:
(A) i and ii
(B) ii and iii
(C) iii and iv
37. Which of the following facts are notcorrect in the context of India‟s relations with
the WTO?
i. India has been the founder member of the GATT.
ii. India has agreed to abide by the arrangement on the intellectual property rights.
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iii. Under the trade-related investment measures, India has already notified its stand.
iv. India has agreed to allow entry to Foreign Service providers.
v. The Indian government has amended the Civil Procedure
Codes:
39. Match the theories of Foreign Direct Investment with their contributors:
Codes:
abcd
(A) i ii iii iv
(B) iv iii i ii
(C) iii ii iv i
(D) i ii iv iii
40. Assertion (A): The laws regarding patents and trademark are ineffective in many
countries.
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Reasoning (R): There are cases when a government does not abide by the rulings of
theInternational Court of Justice.
Ahmedabad, revealed that the possession of competencies is necessary for superior
performance of the entrepreneurs. The study was conducted under the guidance of
(C) James J. Berna
(D) P.L. Tandon
42. is considered as a creative capital which performs economic functions
different from other investment vehicles, which primarily serve as the expansion capital.
(A) Equity Capital
(B) Fixed Capital
(C) Venture Capital
(D) Share Capital
44. means identifying and imitating the best in the world at specific tasks.
(A) Quality circle
(B) Bench marking
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(C) Strategy
(D) Outsourcing
sickness?
46. Assertion (A): Ethical relativism means that there are universal standards of human
behavior.
Reasoning (R): Ethical behavior is primarily personal behavior conforming to standards

of morality.
(A) 15 August, 2000
(B) 26 August, 2003

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49. Corporate governance mechanism should ensure that corporate executive make
strategic decisions that serve the entire group of
(C) Suppliers
(D) Shareholders
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1. The Marshallian utility analysis is based on a less valid assumption of
(A) Cardinal measurement of utility
(B) Constant marginal utility of money
(C) Diminishing marginal utility of goods
(D) Additivity of the utility
2. An appropriate pricing strategy for a new product to be introduced in the market will
be
(A) Average/Marginal cost-plus pricing
(B) Skimming/Penetrating pricing
(C) Product-line pricing
(D) Differential pricing
3. Economic capacity of a plant represents the firm‟s capability for
(A) Maximum physical output
(B) Maximum marginal output
(C) Break-even level of output and sale
(D) Output that equates average and marginal costs
4. Multi-stage approach to product pricing in a firm involves considerations for setting
the price as follows:
i. Selection of firm‟s objective
ii. Composition of marketing-mix
iii. Selection of target market
iv. Selection of pricing policy and strategy
(A) iv → ii → i → iii
(B) iii → i → ii → iv
(C) ii → iv → iii → i
(D) i → iii → ii → iv
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5. Which one of the following practices is not sought to be regulated under the
(A) Sales of defective goods
(B) Supply of services having some deficiency
(C) Misleading advertisements
(D) Goods supplied free of charge
6. The leadership prototype
(A) is useful primarily for selection and training of employees
(B) uses LPC (Least Preferred Co-worker) as an important component
(C) depicts the image of a model leader
(D) emphasizes leadership development
7. Which is not a perceptual process stage?
(A) Attention/selection
(B) Interpretation
(C) Follow-through
(D) Retrieval
8. Which statement is correct?
(A) Goals act as the set of constraints that an organization must satisfy.
(B) Deterministic goals specify the end or direction towards which the organization
applies its efforts, and they can be fairly determined.
(C) Goals may be categorized as deterministic and constraint goals.
9. According to Fiedler‟s Contingency Model of Leadership, which one of the following
is not a situational variable?
(A) Leader-Member relations
(B) Task structure
(C) Position power
(D) Maturity of followers
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10. Which is not a centralized communication network system?
(A) Wheel Network
(B) Y-shaped Network
(C) Circle Network
(D) Chain Network
11. Why is „procedural justice‟ important in the context of the management of
misconduct?
(A) It reflects on the integrity of HR professionals.
(B) It ensures that individuals have a sense that they have been treated fairly.
(C) It reflects on the values and attitudes of top management.
(D) It protects the interest of daily wage earners.
12. To be effective a points-based rating system requires:
(A) Close management control
(B) Comprehensive, reliable and consistent information
(C) Objectivity in assessments
(D) 360° assessment
13. Too much of reliance on internal recruitment can result in
(A) Reduced job performance
(B) High labor turnover
(C) Internal conflict
(D) Poor group dynamics
14. The concept of stagnation in the context of HRM means:
(A) Lack of appropriate selection criteria.
(B) HR staff having very limited experience outside the HR functions.
(C) Over-reliance on the internal labor market to fill new positions.
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(D) Lack of integration of recruitment and selection into the wider human resource
function.
15. Negotiations are an important aspect of the collective-bargaining process.

What do they ensure?
(A) That conflict is contained within manageable boundaries.
(B) That there is an agreement between all parties involved.
(C) That conflict is always resolved.
(D) It achieves a set of lasting agreements.
16. If the going rate of interest is above the coupon rate, the bond will sell :
(A) At a Premium
(B) At a Discount
(C) At Par
17. In case the sales or project‟s investment deviates from expected ones, it needs
(A) Optimistic scenario analysis
(B) Sensitivity analysis
(C) Simulation analysis
(D) Financial break-even analysis
18. „Trading on equity‟ refers to
(A) Optimum capital structure
(B) Appropriate capitalization
(C) Capital gearing
(D) Watered capital
19. Match the items of two lists, giving the correct code:
a. Dividend Capitalization Model i. John Lintner

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b. Dividend Relevance Model ii. James E. Walter
c. Dividend Irrelevance Model iii. Myron Gordon
d. Dividend Payout Model iv. Modigliani & Miller
Codes:
abc d
(A) ii i iii iv
(B) i iv ii iii
(C) iii ii iv i
(D) iv iii i ii
20. The excess payment by the new company to the amalgamating companies for the
appraised value of the assets and liabilities taken over is accounted as
(A) Capital Reserve
(B) Bonus Share Capital
(C) Goodwill
(D) Amount paid for the acquisition of the brand
21. Which of the following is direct marketing?

(A) Face to-face marketing
(B) Catalogue marketing
(C) Direct mailing
(D) Test marketing
22. In marketing research, primary data can be collected through

(A) Observational Method
(B) Survey Method
(C) Experimental Method
23. Holistic marketing does not include

(A) Internal Marketing
(B) Integrated Marketing
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(C) Performance Marketing
(D) Financial Marketing
24. Which of the following is not a distinctive characteristic of services?

25. To remain dominant, a market leader looks for

(A) Ways to expand total market demand
(B) Attempting to protect its current share
(C) Increasing its market share
26. Consider the names of organizations/persons listed in List – I and their
a. Bureau ofService quality Standards (BIS) i. Measurement of service
qualityIndian
B.ZeithmalParasuraman and Berry ii. Measurement of quality of educational
service
c. ISO iii. Standardization and quality control of
manufactured goods
d. National Assessment and Accreditation Council iv. Quality marketing and
Certification of standards
Codes:-
a b c d
(A) i ii iii iv
(B) ii iii iv i
(C) iv ii iii i
(D) iii iv i ii
27. In Linear Programming, which one of the following cases is not a type of sensitivity
analysis?
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28. The upper control limit for an X chart, with n = 9, Mean = 26.7, R = 5.3 and d2
= 2.970, is
(A) 24.9 (B) 26.11 (C) 27.29 (D) 28.48
29. The additional cost of shortening an activity by one unit of time is
30. Which method is least suited for forecasting the demand of a new product?
(A) Survey of Buyers‘ Intentions (B) Composite Opinions of Sales Force
31. In a hypothesis test, α = 0.05 and β = 0.10, the power of the test is
(A) 0.10 (B) 0.90
(C) 0.95 (D) 0.15
32. When performing a Chi-square hypothesis test, what happens when expected
frequencies in several cells are too small?
33. Under which situation, the method of „experimentation, modeling and sensitivity
analysis‟ is used to determine the information requirements of the management?
(B) High Risk
(C) Low Risk
(D) Certainty
34. The technique(s) that can be used in data mining is/are:
(B) Decision tree
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(C) Neural networks
35. A Binomial distribution may be approximated by a Poisson distribution, if:
Codes:
(A) i, ii and iii
(B) ii only
(C) iii and iv only
(D) iv only
36. Double taxation relief is normally provided by the country in which the parent
company has its legal residence. It is provided in the following modes:
v. Tax subsidy
Codes:
(B) i, ii, iv and v
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ii. The legal, economic, social and cultural environment varies from one country to
another.
iii. Different countries have different time lines and geographical boundaries.
Codes:
(A) i, ii and iii
(B) ii, iii and iv
(C) i, ii and iv
(D) i and ii only
Codes:
abcd
(A) iv i iii ii
(B) iii i iv ii
(C) ii i iii iv
(D) iv i ii iii
39. In the context of International Business, whether an equal distribution of income in
the host country:
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(D) Has a significant impact on the MNCs market segmentation strategy if the economy
is at the take-off stage.
40. Statement-I: Cost of retained earnings is included in the cost of equity in the context
of international business.
Statement-II: Interest rate swap and currency swap are used interchangeably in
international business.
41. Who said – “An entrepreneur always searches for change, responds to it and exploit
it as an opportunity.”?
(A) James Burna
(B) McClelland
(A) Uttar Pradesh
(B) Jammu & Kashmir
(C) Andhra Pradesh
(D) Gujarat
(A) iii iv i ii
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(B) iv i iii ii
(C) iii iv ii i
(D) iv i ii iii
d. Marketing Plan iv. Exploring market opportunity
Codes:
abcd
(A) i ii iii iv
(B) iv iii i ii
(C) iv iii ii i
(D) i ii iv iii
45 . TePP stands for
(A) Business growth
(B) Customers
(C) Employees
(D) Shareholders
47 . Good governance in corporate sector depends upon

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48. Corporate leaders in India in private sector are tempted by a very high target of
and the concerned employee has to achieve the target for promotion and stability.
(A) Money making
(B) Business growth
(D) Profit
49. Corporate business ethics is norms and pattern that spring from
organizational view of good and bad, right and wrong.
(A) Social
(B) Behavioral
(C) Institutional
(D) Individual
50. Trade Union strike supporting a political cause and affecting production activities
is a problem related to
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UGC NET PAPER II SEPTEMBER 2013
1. The sum of the value of all final goods and services produced within a country and
net factor income from abroad is termed as
2. If a firm raises Rs1,00,000 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
3. 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.
4. Statement I: Demand for a commodity refers to quantity of the commodity
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.
5. Match the items given in List-I with most suitable options given in List-II.
(e) Rate of discount which equates
(f) Ratio of present value of cash
(g) Percentage of annual net income
earned on average fund invested in a project. (iii) Profitability Index
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(h) Investment divided by annual net cash
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)
6. The process through which individuals attempt to determine the causes behind others‟
behavior is known as
(A) Perception
(B) Attitude
(C) Attribution
(D) Social identity theory
7. 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
8. Annual Reports, Balance Sheets, Brochures and Advertisements in
(A) Influencing
(B) Image building
(C) Group building
(D) Credibility building
600
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

behavioral 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
a. Delegating 1. A function of a situation wherein a leader is effective only when

the style used to influence and alter the situation is appropriate.
b. Situational Theory 2. Low nurturing and low regulating behavior.
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

forpeople and concern for production.
Codes:
abcd
(A) 1 2 3 4
(B) 2 1 4 3
601
(C) 3 2 4 1
(D) 4 3 1 2
11. On-the-job training methods are not based on
(A) Demonstration methods
(B) Interactive methods
(C) Vestibule Training methods
(D) Apprentice training method
12. 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.
(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

(C) Profit distribution under a profit sharing plan is used to fund employee retirement
plans.
14. Performance appraisal includes
(A) Check reviews done by the supervisors.
(B) Review his performance in relation to the objectives and other behaviors.
(C) Promote employees for self-appraisal.
602
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. Flexi time 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:
abcd
(A) 1 2 3 4
(B) 4 32 1
(C) 2 3 4 1
(D) 3 4 1 2
16. 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
17. 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
603
(C) Risk-adjusted Discount Rate Approach
(D) Decision-tree Approach
18. 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
19. 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.
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:
abcd
(A) 1 2 3 4
(B) 4 3 2 1
(C) 4 2 1 3
604
(D) 2 3 4 1
21. A deliberate and careful choice of organization, product, price promotion,

place strategies and policies best define the concept of
(A) Marketing Mix
(B) Product Mix
(C) Market Penetration
22. 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 satisfybuying needs.
23. 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.
24. 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.
(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
605
(B) 1 2 3 4
(C) 2 1 3 4
(D) 2 1 4 3
25.“Marketing concept is the recognition on the part of management that all business
decisions at the firm must be made in the light of customer needs and wants, hence that
all marketing activities must be under one supervision and that all activities of a firm
must be coordinated at the top in the light of market requirements.”
Who said it?
(A) Lazo and Carton
(B) Schwartz G
(C) King RL
(D) C.P. McNamara
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
27. Statement I: Mean (X) chart do not give the desired result about 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.
28. Which one is not a part of control charts for attributes?
606
29. There are different phases in a Operations Research Project. They are
(A) (i), (ii), (iii)
(B) (iii), (i), (ii)
(C) (ii), (iii), (i)
(D) (iii), (ii), (i)
(A) A Linear Programming Problem (LPP) with all integer data.
(B) A LPP with two decision variables.
(C) Any LPP.
31. A vendor can make a profit of Rs3,000 with a probability of 0.4 or make a loss of
Rs1,000 with a probability of 0.6. What is his expected profit?
(A) Rs600 (B) Rs800
(C) Rs1,000 (D) Rs500
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
(C) Cochran Q test
33. Match the items given in List-I with most appropriate options given in List-II.
(a) Centroid
607
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)
34. Identify the window not associated with SPSS.
(A) Editor
(B) Syntax
(C) Output
(D) Format Cells
35. Match the items given in Column-A with the items given in Column-B.
Codes:
(a) (b) (c)
(A) (ii) (iii) (i)
(B) (iii) (ii) (i)
(C) (i) (ii) (iii)
(D) (ii) (i) (iii)
608
36. In BCG Matrix which division represents the organization‟s best long-run
(A) Question marks
(B) Stars
(C) Cash Cows
(D) Dogs
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
(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).
Term Explanation
a. Strategy 1. Enduring statements of purpose that
distinguish one business from other simple firms.
seeks to achieve.
d. Objectives 4. Means by which long term objectives will
be achieved.
Codes:
abcd
609
(A) 4 3 1 2
(B) 4 2 3 1
(C) 1 3 2 4
(D) 1 2 3 4
(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.
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
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
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
610
Codes:
abcd
(A) 1 3 2 4
(B) 1 2 3 4
(C) 4 3 2 1
(D) 4 2 3 1
44. means identifying and imitating the best in the world at specific tasks and
functions.
(A) Quality circle
(B) Outsourcing
(C) Bench marking
(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.
611
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)
46. Which of the following duties is not a general duty of directors of a company?
(B) Duty of care
Codes:
(a) (b) (c) (d)
(A) (i) (iii) (ii) (iv)
(B) (iv) (iii) (i) (ii)

612
(C) (ii) (iii) (iv) (i)
(D) (i) (iii) (iv) (ii)
(iii) Obtain consensus that the leaders are committed to creating value based work
place.
Codes:
613
1. 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
2. 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.
3.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.
4. 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)
614
5. Match the following items in List – A with the most appropriate options from List –
B:
List-A List-B
d. A lender buys securities to protect himself
from a fallinginterest rate1. Interestrate collar
b. A borrower buys securities to protect himself
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 bcd
(A) 2 4 3 1
(B) 4 2 1 3
(C) 4 2 3 1
(D) 3 2 1 4
6. The form of learning in which people acquire new behaviors 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
7. Diffusion of routine information takes place through
(A) Downward Communication
(B) Upward Communication
(C) Horizontal Communication
(D) External Communication
8. An integrated group of activities to bring about a change is known as
(A) Organization development

615
(B) Interventions
(C) OCTAPACE
(D) Collaborative culture
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

Codes :
abcd
(A) 1 2 3 4
(B) 4 3 2 1
(C) 3 1 4 2
(D) 3 4 1 2
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

616
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 :
abcd
(A) 1 2 3 4
(B) 4 1 2 3
(C) 3 4 1 2
(D) 2 3 4 1
11. Human resource planning system includes
(A) Human resource supply forecast
(B) Human resource inventory
(C) Corporate plan
12. Who among the following propounded the concept of collective bargaining?
(A) Beatrice and Gompers
(B) Beatrice and Emerson
(C) Gompers and Emerson
(D) Gautt and Gompers
13. 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.
617
14. Human Resource Management includes
5. Selection
(A) 1, 2, 3 and 4 (B) 1, 3, 4 and 5
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:
abcd
(A) 1 2 3 4
(B) 4 3 2 1
(C) 3 1 4 2
(D) 2 3 1 4
16. 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
618
17. 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
18. 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
19. 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.
20. 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
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c. Accounting for merger 3. Pooling of interest
d. Financing for merger 4. Cash offer
Codes:
abcd
(A) 1 2 3 4
(B) 2 1 4 3
(C) 2 1 3 4
(D) 3 4 2 1
21. What kind of pricing strategy a firm should normally follow for marketing
electronic goods?
(A) Penetration pricing strategy
(B) Skimming pricing strategy
(C) Cost plus pricing strategy
22. 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.
23. 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
620
Codes:
(A) 1 & 2
(B) 2 & 3
(C) 3 only
(D) 4 only
24. Two statements are given below:
Statement – I: Product concept of marketing holds that consumers would favor 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.
(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.
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:
abcd
(A) 1 2 3 4
(B) 2 3 4 1
(C) 3 4 1 2
(D) 4 3 2 1
621
(A) The length of time it takes to complete a work task assigned to a specific job.
(B) Improving work methods.
(C) Arrangement of machines according to operations.
(D) Planning the work and working for the plans.
27. Facility planning includes
(A) Determination of production capacity
(B) Determination of production facilities location
(C) Determination of the layout
(D) All the above
a. For fraction or proportion of defects 1. R-chart
b. For number of defects 2. C-chart
c. For number of defects for unit 3. nP-Chart
d. For monitoring process variability 4. P-Chart
a b c d
(A) 1 2 3 4
(B) 4 3 2 1
(C) 2 1 4 3
(D) 3 4 1 2
29. Statement – I: One of the major causes of the industry for larger capacity is the
argument that large facilities facilitate greater economies of scale. But the major
concern for building big capacity is that funds will be tied up or scarcity of funds.
(A) Both statements I & II are correct.
(B) Both statements I & II are false.
(C) Statement I is correct and II is false.
(D) Statement II is correct and I is false.
622
30. In a symmetrical distribution
31. From the following, identify the test which can be used both as parametric and non-
parametric?
(A) ‗t‘ test
(B) ‗F‘ test
32. Arrange the following in ascending order in the testing of hypothesis:
(iv) Decision
Codes:
33. Y = a + bX refers to
(A) Y = independent variable, a = slope of the line, b = Y intercept and X = dependent
variable
(B) Y = dependent variable, a = slope of the line, b = Y intercept and X = independent
variable
(C) Y = independent variable, a = dependent variable, b = Y intercept and X = slope of
the line
623
(D) Y = dependent variable, a = Y intercept, b = slope of the line and X = independent
variable
34. Select the most appropriate option from Column B against the items in Column A:
Column A Column B
Codes:
abc
(A) 3 2 1
(B) 2 3 1
(C) 1 2 3
(D) 2 1 3
35. According to Michael Porter, a strategy aims at producing products and services
considered unique industry wide and directed at consumers who are relatively price-
insensitive is known as
(A) Cost Leadership – Best Value
(B) Differentiation
(C) Focus – Low Cost
(D) Focus – Best Value
36. In context of Industry Analysis which matrix allows strategists to summarize and
evaluate economic, social, cultural, demographic, environmental, political,
governmental, legal, technological and competitive information?
(A) EFE Matrix
(B) CPM Matrix
(C) BCG Matrix
(D) IFE Matrix
624
37. Which among the following best describes the process of gaining competitive
advantage in a firm?
(A) Strengths → Weaknesses →Distinctive Competencies → Competitive Advantage
(B) Weaknesses → Strengths →Distinctive Advantages →Competitive Advantages
(C) Weaknesses → Strengths →Distinctive Competencies →Competitive Advantages
(D) Distinctive Competencies →Weaknesses → Strengths →Competitive Advantages
38. According to Porter, the nature of competitiveness in a given industry can be
viewed as a composite of the following five forces:
b. Divisional Structure 2. Smooth delegation of authority and responsibility
Codes:
abcd
(A) 1 2 3 4
(B) 3 4 1 2
(C) 3 4 2 1
625
(D) 4 3 1 2
40. A sound business opportunity is theresult of appropriate interaction between:
41. “An entrepreneur always searches for change, responds to it and exploit it as an
opportunity.” Who said it?
(A) F.W. Taylor
(C) J.R. Tulsian
(D) Max Weber
43. Which is not the object of Entrepreneurship Development Programmes?
b. Central Pulp and Paper Research Institute 2. Deals with pollution control in
Indian Tannerics
d. Electronic Service and Training Centre 4. Deals with training, technical and
consultancy services
626
Codes:
abcd
(A) 1 2 3 4
(B) 3 1 2 4
(C) 2 3 4 1
(D) 4 3 1 2
(A) Jockeying
(B) Balking
(C) Reneging
46. Which among the following is not correct with regards to Clause 49 of SEBI Act?
(D) Power to borrow monies exceeding the aggregate of the paid-up capital of the
company and its free reserves.
48. The professional having high ranking and trained to uphold the highest standard
and effective operations, compliance and administration as corporate governance, is
known as
627
(D) Shareholders
49. Governance is the system of values, policies and institutions by which a society
manages its economic, political and social affairs through interactions within and
among the state, civil society and private sector is defined by
(A) World Bank
(B) UNDP
Codes:
abcd
(A) 4 2 1 3
(B) 4 1 2 3
(C) 4 3 2 1
(D) 4 3 1 2
628
1. The term Opportunity Cost refers to
(A) Variable Cost
(B) Short-run cost
(C) The cost forgone in favor of production of another product
2. If two commodities are complementary, then a rise in the price of one commodity
will induce
(A) A rise in the price of the other commodity
(B) An upward shift of demand curve
(C) No shift in demand for the other commodity
(D) A backward shift in demand for the other commodity
3. What is the characteristic of a purely competitive market?
(A) Large number of buyers and sellers
(B) A few sellers
(C) A few buyers
(D) Abnormal profit
4. Willingness to pay minus actual payment is called
(A) Consumer‘s surplus
(B) Producer‘s surplus
(C) Utility cost
(D) Supplier‘s surplus
5. Match List – I with List – II and select the correct answer using the codes given
below the lists:
a. Cost Function 1. Kinky Demand Curve
b. Supply Function 2. Isoquants
c. Production Function 3. Engineering Method
629
d. Oligopoly 4. Factor Prices
Codes:
abcd
(A) 3 4 2 1
(B) 4 3 1 2
(C) 3 2 1 4
(D) 1 2 3 4
6. When analyzing your business and its environment, it is useful to carefully
inspect
(A) Threats
(B) Opportunities
(C) Strengths and weaknesses
(A) Decreased competition
(B) New Trade Regulations
(C) Global Sales Potential
(D) Economies of Scale
8. Expectancy Theory of Motivation was propounded by
(A) Porter and Lawler
(B) McGregor
(C) Vroom
(D) J. Stacy Adams
9. Which one of the following is not a step in planning?
(A) Establishing objectives
(B) Developing premises
630
(C) Determining alternative courses
(D) Identifying needs of employees
10. Planning is looking ahead and control is
(A) Scanning environment
(B) Looking back
(C) Setting targets
(D) Defining objectives
11. Human Resource Management (HRM) is a part of the broad Human Resource
Development (HRD) System, as this focus to
(A) Selection, Induction, Training and Development
(B) Operational and Organizational
(C) (A) and (B) above
12. Performance Appraisal is a double edged tool to
(A) Create space for the employee to organizationally survive.
(B) Offering challenges for promotion.
(C) Accompanying the course of Demotion.
13. Wage determination is mostly done through tools which are
14. Job Evaluation criterion comes from
15. Exit Policy primarily emphasizes in the broad sense, for policy makers as
(A) Removing employees

631
(B) Down sizing
(C) Retiring people and rehabilitating them
(D) Bringing new blood to the Corporate
16. The goal of financial management is to
(A) Maximize the wealth of Preference Shareholders
(B) Maximize the wealth of Debenture holders
(C) Maximize the wealth of Equity shareholders
17. The Internal Rate of Return (IRR) is determined where
(A) The Net Present Value is positive
(B) The Net Present Value is negative
(C) The Net Present Value is zero
18. The Tax shield would result in
i. increase in tax liability
ii. Increase in EPS
iii. Decrease in EPS
iv. Decrease in tax liability
Codes:
(A) (ii) and (iv)
(B) (i) and (iii)
(C) (i) and (iv)
(D) (iii) and (iv)
19. Which of the following is a main method of issue of stocks?
(A) Vendor placing
632
(B) Public issue through Prospectus
(C) Private placements
20. The Capital Asset Pricing Model (CAPM) establishes the relationship between
(A) Risk and EPS
(B) Risk and value of the firm
(C) Risk and the required rate of return
21. „Marketing is a human activity directed at satisfying needs and wants through
Exchange process‟; is the statement of
(A) Cundiffad Still
(B) Kenneth Andrews
(C) Philip Kotler
(D) Kishwar S. Kan
22. Promotion mix includes
(A) Advertising, publicity, personal selling and sales promotion
(B) Physical attributes, brand, package and product life cycle
(C) Brand name, product benefits, delivery and credit
(D) Transportation, material handling, packaging and customer service
23. Which of the following is not the stage of product life cycle?
(A) Introduction
(B) Growth
(D) Decline
24. Which is the basic form of Innovation?
(A) Introduction of novel production process
(B) Improvement and development of existing process
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(C) Improvement and development of existing firm
25. The scientific system of collecting and analysis of data pertaining to market is
known as
(A) Production Research
(B) Advertising Research
(C) Marketing Research
26. Which one of the following is not the function of Production Management?
(A) Production, Planning and Control
(B) Procurement of Raw Materials
(C) Market Intelligence and Survey
(D) Plant Location and Layout
27. Time study refers to
(A) Developing a standard time to do a particular task
(C) Value analysis
(D) Value engineering
28. Acceptance Quality level is
(A) Maximum number of defectives that the consumers will accept
(B) Fraction defective(s) that the consumer considers acceptable
(C) Fraction defective(s) that theproducer considers acceptable
(D) Maximum number of defectives that the producer will allow
29. In a transportation problem involving 10 origins and 5 destinations, the number of
constraints representing origin capacity and destination requirements is equal to
(A) 50 (B) 49
(C) 15 (D) 14
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30. The critical path of a network is
(A) For which earliest start time and latest start time are same
(B) The shortest time path through a network
(C) For which earliest finish time and latest finish time are same
(D) The longest time path through a network
31. If a person buys one ticket of a State lottery, then the probability that he wins a price
is 0.11. If a person buys one ticket each month for five months, what is the probability
that he will win least one price?
(A) 0.55
(B) 0.50
(C) 0.44
(D) 0.56
32. The standard error of the mean of a random sample of size two or more.
33. A store manager is trying to explore the relationship between percentage fat content
(Y) and price (X) of various dairy products. He finds that the coefficient of
determination is 0.4624 and the estimated regression line is Y = 0.5 – 0.02 X. The
coefficient of correlation would be
(A) 0.68
(B) – 0.68
(C) – 0.02
(D) 0.4624
34. Which of the following statement on testing of hypothesis is always true?
(A) When the null hypothesis is rejected at 5%, it is always rejected at 1% level of
significance.
significance.
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significance.
35. Which of the following devices would be considered a typical sequential access
medium?
(C) Magnetic Tape
(D) CD ROM
(A) BCG Matrix
(C) 7‘s framework
(A) Firm Resources
38. Diversification is to a new business area that has no obvious connection with any of
the company‟s existing areas refer to
39. Which business unit generates substantial cash surplus due to low industry growth
rate and high profit share?
(A) Dog
(B) Cash cow
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(C) Question mark
(D) Star
(D) Adam Smith
(A) IIFT (B) CSIR
(C) SEBI (D) MSME
(A) Harold Koontz
(A) Blake & Mouton
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(B) Strube& Garcia
(C) Stancy Adams
(D) Albert Bandura
47. Ethics provide
(B) CSR
(C) Justice
50. Corporate Social Responsibility (CSR) is looked as the organized network of

making long economic and social relationship of the corporate with the society. But a
business of which type, as mentioned below, cannot afford for it, at the first instance?
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(A) Large Business
(B) Medium Business
(C) Small Business
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1. Cardinal measure of utility is required in
(A) Utility Theory
(B) Indifference Curve Analysis
(C) Revealed Preference
(D) Inferior Goods
2. A Right-ward shift in Demand Curve indicates
(B) An increase in quantity supplied
(C) An increase in supply over the previous year
(D) Law of Variable Proportions
3. Which of the following is the condition for equilibrium for Monopolist?
(A) MR = MC
(B) MC = AR
(C) MR = MC = Price
(D) AC = AR
4. Giffen goods are those goods
(A) For which demand increases as price decreases
(C) Which have high elasticity of demand?
(D) Which gives rise to a Cob-Web situation.
5. Match List-I with List-II and select the correct answer using the codes given below
the lists.
(a) Customer Interview Method 1. Consumers Interview
(b) Market Experiment Method 2. Time series or Cross Section Data
(c) Regression Method 3. Market Stimulation
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(d) Demand Forecasts 4. Market Experiments‘ Survey
Codes:
(a) (b) (c) (d)
(A) 1 3 4 2
(B) 1 3 2 4
(C) 2 4 3 1
(D) 4 2 1 3
6. Who divided all activities of the organizations into six groups; Technical,
(A) Peter Drucker
(B) D. E. McForland
(C) Henry Fayol
(D) George R. Terry
7. What are the elements that a Mission Statement of an Organization should

include?
(A) Self guidelines for Business Operations
(B) Identifies the reasons for existence of a company and its responsibilities to the
stakeholders.
(C) Identifies the firms‘ customers and their needs and matches them to the products
and services.
(D) All of the above (A), (B) and (C).
8. Changes in population characteristics such as age, gender, race, marital status,

income and education are examples of change:
(A) Demographic
(B) Cultural
(C) Geographic
(D) Diversity
9. Which of the following is not included as Micro-Environmental Variables?

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(A) Prevailing economic and political conditions.
(B) Emerging new technologies
(C) Financial conditions and culture
10. During his days at Midvale Steel Company F.W. Taylor saw that employees
soldiering – deliberately working at a pace slower than their capabilities. He identified
that, worker indulge in soldiering primarily for the following reasons:
(A) Fear of losing jobs if they increase their output.
(B) Faulty wage systems.
(C) Out-dated methods of working
11. Among the best known trait approaches to personality measurement – column A
gives Traits and column B states the name of authority defining them. Match the correct
combination
Traits Author
(A) 20 + needs Murray
(B) 16 traits Eysenck
(C) 3 traits Cattell
(D) 5 traits Costa &Merree
(A) often required
(B) seldom required
(C) required as a mandate, when conflict remains unresolved
(D) not at all considered as an option
13. The policy of introducing “New Blood” is
(A) Steriotypic
(B) Bureacratic as well as redtapic

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(C) Innovative and challenging, making the corporate dynamic
(D) Innovative, challenging, but often resisted
14. An “Assessment Centre” is
15. “Organizational learning” and “Learning organization” are
16. The value of the firm is maximized when the
(A) Market price of equity share is maximum
(B) Market price of equity share is minimum
(C) Market value of debt is maximum
17. Which of the following is the main assumption of Waltar Valuation Model?
(A) All financing is done through Retained earnings and external sources of funds.
(B) With additional investment the firms business risk will change.
(C) There is a change in the key variables such as EPS and DPS
18. Which of the following is an important money market instrument?
(A) Debentures
(B) Commercial Paper
(C) Public Deposits
19. The method of payment in Mergers and Acquisitions may include
(i) Cash
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(ii) Loan stock
(iii) Ordinary shares
(iv) Convertible loan stock
(A) (i) & (iii) only
(B) (i) & (ii) only
(C) (i), (ii), (iii) and (iv)
(D) (ii) & (iv) only
20. Working capital refers to the capital mobilized for meeting
(A) Long-term financial needs of the company
(B) To meet day-to-day financial obligations of the company
(C) To meet the future financial requirements of the company

(A) The essence of marketing is a transaction of an exchange.
(B) Marketing–orientation is philosophy, which has to pervade the organizationstructure
(C) Marketing is also a managerial function involving analysis, planning and control
marketing activities in an organization
22. A marketing plan is composed of three basic components, namely
9. Diversity
(A) 1, 2 and 3 only
(B) 6, 7 and 8 only
(C) 5, 7 and 9 only
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(D) 2, 3 and 9 only
23. Which of the following is not the stage of new product development?
(A) Idea Generation
(B) Business Analysis
(C) Test Marketing
24. Marketing research does not normally
(A) Gather environmental information
(B) Provide a continuous source of information
(C) Relate to all aspects of marketing operations
(D) Describe the current situation
(A) Physical evidence
(B) People
(C) Process
(D) Marketing plan
26. Which of the following is not the type of Plant Layout?
(A) Product Layout
(B) Process Layout
(C) Fixed Position Layout

(D) Residential Layout
27. Which of the following factor is considered in the selection of a plant location?
(A) Source of Raw-materials
(B) Availability of water
(C) Marketing facilities
(D) All the above
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(A) The length of time it takes tocomplete a work task assigned toa specific job
(C) Arrangement of machines according to sequence of operations
(D) Planning the work and working the plans
(A) A linear programming problem with all integer data base.
(B) A linear programming problem with two decision variables.
(C) Any linear programming problem.
30. If two dice are thrown, the probability that the sum of their points is greater than 10
is
(A) 1/9
(B) 1/12
(C) 1/3
(D) 1/18
31. A Binomial distribution is characterized as β (16,0.5) i.e. sample size is 16 and the
probability of success is 0.5. The mean and variance of this distribution will be
respectively
(A) 8, 4
(B) 8, 8
(C) 4, 8
(D) 4, 4
32. Two variables are said to be perfectly negatively correlated if
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33. Which type of sampling is appropriate when the population consists of well-
defined groups such that the elements within each group are homogeneous and between
each group they are heterogeneous?
34. Which of the following is not a type of internet connection?
(A) ISDN
(B) Dial-up
(C) Leased-Line
(D) ISP
(I) Poisson distribution has the property that 1. Its mean is greater than Variance
(III) Chi-square distribution is 3. Positively skewed distribution
(IV) Binomial distribution has the property that 4. Its mean and variance are
equal.
Codes:
(I) (II) (III) (IV)
(A) 4 2 1 3
(B) 4 2 3 1
(C) 1 2 3 4
(D) 2 4 3 1
(A) 1975
(B) 1985
(C) 1995
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(D) 2001
(A) Focus
(B) Cost Leadership
(C) Differentiation
(D) All the above
(C) Company mission
(A) Exporting
(B) Joint venture
(A) Vision
(B) Risk Bearing
(D) Disloyalty
42. Which of the following organizations is meant for promoting small scale industries
at district level?
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(A) SIDBI
(B) DIC
(C) SFCs
(D) NABARD
(A) Lack of capital
(B) Lack of market
(D) All the above
(D) All the above
(A) Labor intensive
(C) Market leader
46. Business propositions are to be selected by making an analysis that, how much the
local resources will be depleted in the commencement and the course of Business. This
is known as
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(B) To be promoted
48. Funding through Micro finance to Small and Micro Enterprises is not successful
due to
(C) (A) & (B)
49. “Work-Diversity” by nature, does not go against Ethics. But an executive assistant
while getting transferred from “stores” to “dispatch” section created turmoil in the
office. He is
(A) A Compromise
(B) A Compulsion
(C) A Judgment
(D) (A) and (B)
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1. Consider a demand curve which takes the form of a straight-line cutting both axes.
Elasticity at the mid-point of the line would be
(A) 0
(B) 1.0
(C) 1.5
(D) 2.0
2. Price taker firms
(A) Advertise to increase the demand for their product
(B) Do not advertise, because most advertising is wasteful.
(C) Do not advertise because they can sell as much as they want at the current price.
(D) Who advertise will get more profits than those who do not.
3. OPEC is an example of the type of producer‟s organization known as a
(A) Marketing Board
(B) Producer‘s Co-operative
(C) Trust
(D) Cartel
I. Responsiveness of demand to change in price 1. Income elasticity of

demand
II. Responsiveness of demand to change in tastes 2. Price elasticity of demand
III. Responsiveness of demand to change in income 3. Cross elasticity of demand
IV. Responsiveness of demand to change in price
of related goods 4. Taste elasticity of demand

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Codes:
I II III IV
(A) 1 2 3 4
(B) 4 3 1 2
(C) 3 4 2 1
(D) 2 4 1 3
5. Opportunity costs are also known as
(A) Spill-over costs
(B) Money costs
(C) Alternative costs
(D) Sunk costs
6. Employees with high self-esteem set
(A) Higher goals for others
(B) Higher goals for themselves and lower goals for others
(C) Higher goals for themselves
7. Need for achievement goes with
(A) F.W. Taylor
(B) Hertzberg
(C) McGregor
(D) McClelland
8. An organizational memory includes the following except
(A) Information that employees possess
(B) Knowledge embedded in the organization‘s systems and structures
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(C) Documents
(D) Knowledge that is not documented
9. People should be held accountable for their own behavior, and if holding people
accountable for their own behavior entails capital punishment, then so be it. However,
no person should be held accountable for behavior of others over which he or she had
no control.
Which of the following is the most logical conclusion of the argument above?
(A) People should not be held accountable for the behavior of other people.
(B) People have control over their behavior.
(C) People cannot control the behavior of other people.
(D) Behavior that cannot be controlled should not be punished.
10. Nominal group technique is
(A) a consensus planning tool, generally used by groups to discuss, debate and decide
on issues of strength identification, problems and solutions.
(B) a consensus planning tool to arrive at decisions on issues, for instance man-power
requirement, by involving group of experts through blind rounds of communication
(C) a majority based decision making tool
11. Which pattern reflects a pure executive form of management?
(A) Functional
(B) Line
(C) Line and Staff
(D) Committee
12. “A place for everything, everything in its place” is
(A) American Management
(B) 5s Practice
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(C) Peter Principle
(D) A Chinese Practice
13. „Appreciative Enquiry‟ is
(A) Psychological Theory
(B) Training Method
(C) Business etiquette
(D) HR Quality
14. Robert Keplan is associated with
(A) A Benchmark Practice
(B) Balanced Score Card
(C) Kaizen
(D) Quality of Life
15. Strategic Intent of an Organization should clearly spell out
(A) Who we are
(B) Where are we going in the long term
(C) How will we measure the performance
16. In an endeavor to maximize corporate value, a finance manager has to factor in the
following
(A) Optimization Principle
(B) Risk-return Principle
(C) Marginal Principle
(D) All the above
17. The term financial engineering is related to
(A) Cost of production
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(B) Financial restructuring
(C) Product planning
(D) Capital issue
18. Value of the merged firm shall be
(A) Less than the acquired firm
(B) More than the acquirer
(C) Greater than the target and the acquirer
19. When borrowing is less than equity, the company is said to be
(A) Trading on equity
(B) Trading on thick equity
(C) Trading on thin equity
(D) None of these
I. Secured debt 1. Mortgage on Assets
II. Unsecured debt 2. Non-mortgage on Assets
III. Convertible debt 3. Option
IV. Redeemable debt 4. Payment
Codes:
I II III IV
(A) 1 3 2 4
(B) 2 1 3 4
(C) 3 1 4 2
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(D) 1 2 3 4
21. It is a set of procedures and sources used by managers to obtain everyday

information about developments in the marketing environment. It is known as
(A) Internal Records System
(B) Marketing Intelligence System
(C) Marketing Research System
(D) Marketing Decision Support System
22. Match the List – I with List – II:
(Stage of the product life cycle) (Marketing strategy applied in the

stage of the product life cycle)
I. Introduction Stage 1. Market Modification
II. Growth Stage 2. Rapid Skimming Strategy
III. Maturity Stage 3. Enter New Market Segments
IV. Decline Stage 4. Continuation Strategy
Codes:
I II III IV
(A) 3 2 4 1
(B) 2 3 1 4
(C) 2 3 4 1
(D) 4 2 1 3
23. It has been described as a cluster of complementary goods and services that are
closely related in the minds of consumers but are spread across a diverse set of
industries. It is known as
(A) Market Place
(B) Market Space
(C) Meta-Market
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(D) Marketing Mix
24. Company‟s ability to provide individually differentiated product for each consumer
is called as
(A) Digitalization
(B) Disintermediation
(C) Customerization
(D) Connectivity
25. The qualitative value of an exposure through a given medium is related to
(A) Reach
(B) Frequency
(C) Impact
26. When work stations are arranged according to the progressive steps by which the
product is produced, it is called a
(A) Functional layout
(B) Process layout
(C) Job shop layout
(D) Product layout
27. If for a demand process suited to a = 0.1 we try to fit a forecasting procedure with a
= 0.3, the forecast will
(A) Show large swings up and down
(B) Follow the demand better, consequently reducing forecast errors
(C) Show a pronounced behavior
28. CRAFT considers exchanges of locations for those departments which
(A) Have the same area
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(B) Have a common border
(C) Either (A) or (B)
(D) Have same costs per unit of distance
29. If the ordering costs are over-estimated by 50 percent and carrying costs are under-
estimated by 50 percent, the total annual cost will exceed the optimum cost by
(A) 73.2 per cent
(B) 50 per cent
(C) 0 per cent
(D) 150 per cent
30. PERT/CPM network analysis can be used for
(A) Project appraisal
(B) Project implementation
(C) Project monitoring and control
31. If P (A) =2/3, P (B) =1/2, P (A/B) =1/3, then the value of P(B/A) is
(A) 1/2
(B) 1/3
(C) 1/4
(D) 1/5
32. The level of significance is the probability of committing the
(A) Type I error
(B) Type II error
(C) Standard error
(D) Probable error
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33. The two lines of regression are 3x + 2y = 26 and 6x + y = 31 then the mean of x is
(A) 3 (B) 4
(C) 6 (D) 7
34. For which distribution(s) Mean and Median are equal?
Codes:
(A) (i)
(B) (ii)
(C) (i) & (iii)
(D) (ii) & (iv)
35. The type of transmission channel which can transmit data in one direction only is
known as
(A) Simplex
(B) Half Duplex
(C) Full Duplex
(D) Half Simplex
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II. C.K. Prahlad 2. Management by Objectives
IV. Alfred Chandler 4. Structure follows Strategy
Codes:
I II III IV
(A) 1 3 2 4
(B) 2 3 1 4
(C) 3 1 2 4
(D) 4 2 3 1
(A) Planning School
(A) Vision
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(C) Objectives
(D) Policies
(A) Primary Sector
(C) Tertiary Sector
42. The definition of Micro, Small and Medium Enterprises (MSMEs) in India is based
on
(C) Market coverage
(D) Export capacity
43. Which one of the following agencies has the power to declare any industrial unit as
a potentially sick unit?
(A) BIFR (B) SIDBI
(C) IRCI (D) FICCI
(A) Mumbai
(B) Lucknow
(C) New Delhi
(D) Hyderabad
(A) Rs10 lakhs, Rs5 crores and Rs10 crores
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46. The study of moral principles or values that determine whether actions are right or
wrong and outcomes are good or bad refers to following:

Ethics)
I. Ethical Climate 1. Each society‟s view of ethics must be considered

legitimate and ethical
II. Ethical Relativism 2. There are basic moral principles that transcend
cultural and political boundaries
III. Ethical Universalism 3. People pick-up subtle hints and clues that tell them
what behavior is approved and what is forbidden.
IV. Ethical Convergence 4. There are growing pressures on international business to

follow the same rules in managing ethical behavior and social responsibility
Codes:
I II III IV
(A) 3 1 2 4
(B) 1 3 2 4
(C) 1 4 3 2
(D) 4 1 2 3
48. An organization‟s moral obligation toward all of its stakeholders is referred as

following:
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(D) Professionalism
49. is the manager‟s dilemma when he has to decide on the commercial

proposal submitted by his son.
(A) Favouritism
(B) Moral Dilemma
(B) Green Marketing
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1. In the case of an inferior commodity, the income elasticity of demand is
2. The slope of the iso-cost line is determined by
(A) Prices of the two factors
(B) Productivity of the two factors
(C) Degree of substitutability of the two factors
(D) None of these
3. Which one of the following statements is correct or more nearly correct?
(A) An increase in the price of commodity represents a fall in its value
(B) Value has nothing to do with the price
(C) If the price of a commodity falls, its value relative to other goods does not change
(D) The price of a good is its value measured in terms of money
4. The important macro-economic aggregates are
(A) Aggregate Consumption
(B) Gross Domestic Capital Formation
(C) Gross Domestic Savings and GNP
I. For a given 10 per cent change in price,
II. For a given 10 per cent change in price,
Demand changes by 5 per cent 2. e = 1

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III. For a given 10 per cent change in price demand
changes by 10 per cent 3. e < 1
IV. For a given 10 per cent change in
price, demand changes by 20 per cent 4. e = 0
Code:
I II III IV
(A) 3 1 2 4
(B) 4 3 2 1
(C) 1 2 3 4
(D) 2 3 1 4
6. Long – lasting beliefs about what is important in a variety of situations, that guide
our decisions and actions are:
(A) Values
(B) Ethical dimensions
(C) Priorities
(D) Desires
7. Figure – Ground Theory explains the process of
8. Successive re-inforcements resulting in desired behavior are
(A) Mentoring
(B) Motivation
(C) Shaping
(D) behavior-modification
9. Psychological contract is related to
(A) Job – person fit

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(B) Role – person fit
(C) Organization – person fit
10. Equity is called as
(A) Equality of all
(B) Standard performance
(C) Comparative sense of justice to self
11. The distinction between „job enrichment‟ and „job enlargement‟ is
(A) Semantics
(B) ‗Job enrichment‘ is vertical loading while ‗job enlargement‘ is horizontal loading
(C) ‗Job enrichment‘ is the outgrowth of Hertzberg‘s theory while ‗job enlargement‘ is
of Maslow‘s orientation.
(D) ‗Job enrichment‘ is more for the individual and the other is more of organization
making
12. In „delegation‟
(A) Only authority is delegated not responsibility
(B) Both authority and responsibility are delegated
(C) Only responsibility is delegated, not authority
(D) Neither responsibility, nor authority is delegated
13. Cross-functional groups that operate across space, time and organizational
boundaries with members who communicate mainly through information technologies
are
(A) Telecomputers
(B) Virtual teams
(C) Teleworkers
(D) Telemarketers
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14. Career resilience means
(A) Ability to switch careers
(B) Ability to remain with same competencies refining suitably for organizations
(C) Lack of capacity to remain in career
15. Lock out means
(A) An antithesis of strike
(B) Refusal to employ any person in employment
(C) the temporary closing of a place of employment
(D) Illegal strike
16. Which is the task of a finance manager?
(A) Investment decision
(B) Dividend decision
(C) Management of income
17. Which method of capital budgeting focuses on liquidity of a project?
(A) Net present value
(B) Profitability index
(C) Payback period
(D) Internal rate of returns
18. Which statement is true about deep discount bonds?
(A) These are in the form of low interest bonds
(B) These bonds are sold at a discounted value and on maturity face value of the bond is
paid to the investors
(C) There is no interest payout during lock-in period

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19. Financial leverage is
(A) EBIT × 100
Sales
(B) EBIT
EBT
(C) Sales
Fixed Assets
(D) Profit × Capital
Sales
I. Rate of return method 1. Capital budgeting
II. Purchase consideration 2. Merger
III. Diminishing Balance Method 3. Depreciation
IV. Fifo Method 4. Stock valuation
Code:
I II III IV
(A) 1 3 2 4
(B) 3 2 4 1
(C) 1 2 3 4
(D) 1 4 3 2
21. Arrange the following steps of a five-stage model of the consumer buying process:
I. Evaluation of Alternatives
II. Need Arousal
III. Information search
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IV. Purchase Decision
V. Post Purchase behavior
Code
(A) IV, II, III, I, V
(B) III, II, I, IV, V
(C) I, II, IV, III, V
(D) II, III, I, IV, V
22. It refers to the total number of items in the Product Mix. It is known as following.
(A) The width of product mix
(B) The length of product mix
(C) The depth of product mix
(D) The consistency of product mix
23. Given below are two statements, one labeled as Assertion (A), and the other labeled
as Reason (R). State the correct answer from code given below.
Reason (R) : Pure-click companies are those companies that have launched a
Code:
(A) (A) is correct, but (R) is wrong.
(B) Both (A) and (R) are correct.
(C) (A) is wrong, but (R) is correct.
(D) Both (A) and (R) are wrong.
24. Match List-I and List-II.
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(Characteristics of Services) (Marketing Strategy applied considering a
characteristic of service)
I. Intangibility 1. Preparing a service blue print showing each

service and process in a flow chart.
II. Inseparability 2. Tangiblize the intangible
III. Variability 3. To train more service providers and build up

client confidence.
IV. Perishability 4. Use differential pricing
Code:
I II III IV
(A) 2 1 3 4
(B) 2 3 1 4
(C) 1 3 2 4
(D) 2 1 4 3
25. A diverse collection of incentive tools designed to stimulate quicker buying of a

particular product or service by consumers or the trade is known as
(A) Advertising
(B) Personal selling
(C) Publicity
(D) Sales promotion
26. Which of the following departments is not directly affected by the facilities location
decision?
(A) Production / operations
(B) Marketing
(C) Personnel
(D) Finance
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27. Ship building and construction of dams and bridges are typical examples of
(A) Fixed position layout
(B) Functional layout
(C) Product layout
(D) Project type layout
28. If unit item cost = Rs10, monthly carrying charge = 3 per cent, monthly demand =
100 units and ordering cost = Rs20 per order, the EOQ is:
(A) 11.45
(B) 400
(C) 115.4
(D) 33.3
29. In managing a project, a network is better suited than Gantt chart because
(A) It can be updated more easily
(B) It clearly brings out the interdependencies between the different activities
(C) Both (A) and (B)
30. The aggregate production plan spans
(A) Short time horizon
(B) Intermediate time horizon
(C) Long time horizon
31. The probability that a contractor will get a plumbing contract is 2/3 and that he will
get an electric contract is 4/9. If the probability of his getting at least one of the two
contracts is 4/5, then the probability that he will get both contracts is
(A) 10/45
(B) 8/27
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(C) 14/45
(D) 26/45
32. If a random variable X follows Poisson distribution such that P(X = 1) = P(X = 2),
then the mean of the distribution is
(A) 1 (B) 2
(C) 3 (D) 4
33. The value of R1.23 lies between
(A) –1 and +1
(B) –1 and 0.0
(C) 0.0 and +1
(D) – 0.5 and + 0.5
34. A source programme is
(C) the machine language translation of a programme written in high-level language
35. Processing data in groups collected over periods of time is known as
(A) Time - sharing
(A) Tom Peters
(D) Garry Hamel

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37. In highly competitive environment an organization to achieve sustained success
should be
(A) Better
(B) Bigger
(C) Resilient
40. If two or more companies are merged and only one of them survives while others
loose their independent entity, it is referred to as
(A) Merger
(B) Absorption
(C) Amalgamation
(D) Combination
(A) Two categories

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(C) Four categories
(D) Four categories
(B) Service sector
(C) External sector
43. How many times the census of registered Micro, small and medium Enterprises
(MSMEs) have been made by Small Industries Development Organization (SIDO)?
(A) 1
(B) 2
(C) 3
(D) 4
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(A) New Delhi
(B) Ahmedabad
(C) Patna
(D) Kolkata
45. Industrial Policy of which year contained for the very first time a special thrust on
measures for promoting and strengthening small tiny and village enterprises
(A) 1956
(B) 1991
(C) 1948
(D) 1977
46. Members of organizations are increasingly finding themselves facing situations in

which they are required to define right and wrong conduct. It is most aptly called as
following
47. Situations in which individuals are required to define right and wrong conduct to be
complied with are called as following
(A) Ethical climate
(C) Code of Ethics
I. Walk the talk
II. Size up your company‘s current ethics

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Code:
(A) Producer
(B) Seller
(Ethical Issue) (Stakeholder affected)
Code:
I II III IV
(A) 2 4 3 1
(B) 3 1 2 4
(C) 1 3 4 2
(D) 3 2 1 4
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1. Under perfect competition in the long run
(A) All firms earn normal profits
(B) Few firms earn super normal profits
(C) All firms are at break even
2. National Income at market prices is equal to
(A) Gross national product at market prices
(B) Gross domestic product at market prices
(C) Net national product at factor cost
3. If there is a single buyer, it is called
(A) Monopoly
(B) Oligopoly
(C) Monopsony
4. Under which of the following method the time value of money is not considered?
(A) Net present value method
(B) Internal rate of return method
(C) Payback period method
5. A firm is having increasing returns to scale means
(A) It is having increasing costs.
(B) It is having constant costs.

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(C) It is having decreasing costs.
6. Production can be measured in terms of which of the following?
(A) Total productivity
(B) Marginal productivity
(C) Average productivity
7. Which of the following is an objective of human resource management?
(A) Productivity
(B) Quality of work life
(C) Organizational change
(D) All the above
8. Motivation implies that the employees in an organization
(A) Exert more effort to accomplish the desired goals of the organization.
(B) Exert more effort to accomplish the individual goals.
(C) Exert more effort to accomplish the common goals of employees.
(D) Exert more effort to accomplish the desired goals of the employer, employees and
the Government.
9. Communication can be
(A) Oral
(B) Written
(C) Oral and Written
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10. Which of the following is not considered as a leadership style?
(A) Task oriented leadership style.
(B) Society oriented leadership style.
(C) Employee oriented leadership style.
(D) Autocratic leadership style
11. Which of the following method has not been given a statutory form in India?
(A) Conciliation
(B) Mediation
(D) Adjudication
12. What are the operative functions of HRM?
(A) Organizing
(B) Directing
(C) Controlling
13. Which one is not a performance appraisal method?
(A) 360° performance appraisal
(C) Rank method
(D) Interview method
14. Selection of persons in an organization is the responsibility of
(A) Security Dept.
(B) Personnel Dept.
(C) Trade Unions

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(D) Canteen Dept.
15. Labor Welfare facilities were incorporated in which legislation?
(A) MRTP Act
(B) Essential Commodities Act
(C) Consumer Protection Act
(D) Factories Act
16. Job analysis involves
(A) Job description and job specification
(B) Job order and job description
(C) Job specification and job order
(D) Job satisfaction and job description
17. Which one of the following represents number of years required to recover the
initial investment?
(A) Accounting rate of return
(B) Payback period
(C) Internal rate of return
(D) Net present value
18. Other things being equal, stocks which are highly liquid command
(A) Higher dividend payout ratio
(B) Lower dividend payout ratio
(C) Higher P/E multiples
(D) Lower P/E multiples
19. Weighted Average Cost of Capital may contain
I. Cost of Equity
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II. Cost of Debt
III. Cost of goods purchased
IV. Cost of initial investment
(D) I & II are correct
20. Long term sources of finance may contain
I. Retained earnings
II. Inter corporate deposits
III. Debentures
IV. Preference share capital
(A) I, III & IV are correct
(B) II, III & IV are correct
(C) II & III are correct
(D) II & IV are correct
21. When a firm proposes to acquire another firm, the merger proposal may be viewed
as a
(A) Working capital management proposal
(B) Capital budgeting proposal
(C) Financing decision
(D) Dividend decision
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22. Which of the following is not the element of promotion-mix?
(A) Advertising
(B) Place
(C) Personal selling
(D) Publicity
23. Which of the following is in correct order?
(A) Product, Place, Promotion and Price
(B) Product, Promotion, Place and Price
(C) Product, Price, Promotion and Place
(D) Product, Price, Place and Promotion
24. Which of the demographic variables is not used by marketers for demographic
segmentation?
(A) Gender (B) Age
25. At which stage of the new product development, the launching of new product will
take place
(A) Business Analysis
(B) Test Marketing
(C) Commercialization
(D) Marketing strategy Development
26. If a company uses its company name for its entire range of products offered, then it
is called
(A) Private branding
(B) Corporate branding
(C) Product-line branding
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(D) Specific product branding
27. One-level channel of distribution consists of
(A) Producer – consumer
(B) Producer – dealer – consumer
(C) Producer – dealer – retailer – consumer
(D) Producer – dealer – wholesaler – retailer – consumer
28. The primary role of a production manager is
(A) To meet the production target and delivery schedule
(B) To produce goods/services of right quality
(C) To produce goods/services by right quantity at the predetermined time
29. Fixed Position Layout is used when
(A) The operation requires heavy tools and equipments.
(B) The operation requires only hand tools and simple equipments.
(C) The continuity of production process is to be maintained.
30. Critical Path Method (CPM) is concerned with estimation of
(A) Optimistic time
(B) Production lead time
(C) Pessimistic time
31. In a normal distribution, mean (m) ± 3s (3 standard deviation) limits contains

approximately
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32. Firms choose a focus strategy to serve the needs of which of the following?
(A) Buyers group
33. Which of the following is not the component of work study?
(B) Case study
(C) Time study
(D) Motion study
34. Half percent of the letters mailed in a city have incorrect addresses. Out of 200 such
letters mailed in a day, the probability of finding at most 3 incorrect addresses is
(A) 3e/8
(B) 8/3 e–1
(C) 1/ 6 e–1
(D) 5/ 2 e–1
35. If X is a random variable normally distributed with mean u and variance σ2, then
the mean deviation about mean is given by
(A) 1/√2π
(B) √2/π
(C) σ / 2π
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(D) √2σ
36. The level of significance is the probability of committing
(A) Type I error
(B) Type II error
(C) Standard error
(D) Probable error
37. Which of the following tests is used to test a hypothesis about the mean of a
(A) Normal test
(C) Paired t-test
(D) Chi-square test
38. Mean and variance of Binomial Distribution are
(C) m and np (D) np and npq
(A) Cost Leadership
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(C) Cost focus
(D) Group focus
(A) CII (B) RBI
(C) SIDBI (D) BIFR

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(D) Profiteering
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50. The Business Code of Conduct provides guidance to managers and employees
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1. During last five years per capita income of India is increasing, that means
(A) National income growth of India is more than growth of population.
(B) Growth in population is more than the growth in National income of India.
(C) National income of India & population of India have grown at the uniform rate.
2. In the short run firm considers the minimum of its average variable cost curve as
(A) Break-even point
(B) Shutdown point
(C) Economies of scope
3. The positive cross elasticity of demand between two products means
(A) Two products are substitutes
(B) Two products are complementary
(C) Two products are neither substitutes nor complementary
4. A monopolist always operates in the
(A) Inelastic segment of its demand curve
(B) Elastic segment of its demand curve
(C) Unitary elastic segment of its demand curve
5. The price elasticity of demand for any product in the long run
(A) Is more than its short run value.
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(B) Is less than its short run value.
(C) is same as its short run value.
6. Earnings foregone in the context of the best alternative is termed as
(A) Past cost
(B) Historical cost
(C) Opportunity cost
(D) Sunk cost
7. A situation where management is unable to provide employment due to non-

availability of work is called
I. Lock out
II. Lay off
III. Termination
IV. Closure
8. Which one of the settlement methods is not relevant here for disputes ?
(A) Collective Bargaining
(B) Compulsory Adjudication
(D) Reference to Civil Court
9. Which of the following shows a situation of Trade Union rivalries in India?
(A) Different Unions in different organizations.
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(B) More unions in the same organization having affiliation with different political
parties and representing the same type of workers.
(C) More unions in the same organization all representing different types of workers.
10. Reduction of Labor Force is called
(A) Termination
(B) Retrenchment
(C) Lay-off
(D) Right sizing
11. The process of establishing the value of jobs in a job hierarchy is known as
(I) Job analysis
(II) Job requirement
(III) Job evaluation
(IV) Performance evaluation
12. Which of the following is the meaning of Human Resource Planning?
(A) Evaluation of job
(B) Satisfaction of the employees on the job
(C) Appraising the performance of employees
(D) It is the process by which an organization ensures that it has the right number and
kind of people at the right place, at the right time.
13. Induction refers to
(A) Giving training to the employees.

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(B) Giving incentive to the employees.
(C) Introducing employees to the organization culture and situation.
(D) Increasing the morale of the employees.
14. Which of the following is not a fringe benefit?
(A) Transport
(B) Subsidized canteen facilities
(C) Free education to the children
(D) Dearness Allowance
15. „X‟ and „Y‟ theory was prepared by
(A) Herzberg
(B) Maslow
(C) Porter and Lawler
(D) McGregor
16. Which of the following formula is used to calculate Pay Back Period when cash
inflows are constant?
(A) Fixed Assets/Current Assets
(B) Fixed Assets/Current Liabilities
(C) Initial Investment cost/Annual cash inflows
17. The P/E ratio approach to stock valuation is also known as
(A) Earnings multiplier approach
(B) Dividend discounting approach
(C) Required rate of return
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18. The capital structure theories which argue that capital structure is relevant to the
value of firm contain
I. Net Income Approach
II. Net Operating Income Approach
III. Traditional Approach
IV. Modigliani and Miller Approach
(A) I & II are correct.
(B) I & III are correct.
(D) II & IV are correct.
19. Short term financing instruments may contain
I. Commercial Paper
II. Public Deposits
III. Term Loans
IV. Trade Credit
(D) I, II & IV are correct.
20. For calculating weighted average cost of capital, cost of each source of capital is
multiplied by proportion applicable to it. The proportions may be based on
(A) Book values only
(B) Target capital structure only

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(C) Market values only
22. Which of the following is not a stage in the new product development?
(A) Generation of ideas
(D) Test marketing
23. Industrial marketing involves
(A) Business to Business
(B) Business to Customer
(C) Customer to Customer
(D) Retailer to Consumer
24. The concept of Marketing Myopia is propounded by
(A) Philip Kotler
(B) C.K. Prahalada
(C) Peter Drucker
(D) Theodore Levitt
25. In which stage of product life cycle, the company takes decision whether to
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26. Which of the following is the best technique to manage the existing products?
(A) Ansoff Matrix
(C) BCG Matrix
(D) Product life cycle analysis
27. Which of the following is not an element of production management?
28. Production Management Tactical Planning decisions include
(A) Establishing parameters for measuring operational efficiency and productivity.
(B) Establishing quality specifications and test details.
(C) Determining starting and finishing time of each job in the work stations.
29. Work study refers to
(A) Analysis of work into smaller parts followed by re-arrangement of these parts to
give the same effectiveness at lesser cost.
(B) Analytical investigation of the methods involved in the work.
(C) Developing new methods to give work effectiveness.
30. Economic lot size is known as
(A) The lot size for which the total cost per time period is minimum.
(B) The ordering cost and carrying cost are minimum.
(C) The lot size that strikes a balance between ordering cost and carrying cost.
(D) The quantity to be ordered each time is fixed.
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31. Objective of Value Engineering is
(A) Reduce cost without reducing the quality.
(B) Increase value without increasing the cost.
(C) Reduce cost by reducing the quality.
32. If the independent variates x I (i = 1, 2, …..n) are normally distributed about a

common mean, a, with a common variance, σ2, their mean is also normally distributed
about a, but with a variance
(A) nσ2
(B) σ2n
(C) (σ2)n
(D) σn/2
33. The weak law of large numbers is another version of
34. The basic assumptions underlying the t-test for the difference of two sample means
are that the parent populations are and population variances
are
(A) Of any shape; equal and known
(B) Normal; equal and known
(C) Normal; equal but unknown
(D) Normal; unequal but known
35. LAN stands for
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36. If X is normally distributed with mean 30 and s.d. 5 and φ (x) denotes: - 1 ʃ e - 1/2 t²
dt then P (26<X<40) and P (X > 45) given by:- √2π
(a) Φ (.8) + φ (.2) and φ(3) -1/2
(b) Φ (2) - φ (.8) and 1/2 -φ(3)
(c) Φ (2) - φ (.8) and 1/2 +φ(3)
(d) Φ (2) + φ (.8) and 1/2 φ(3)
37. What enables the management to find out whether the strategic management
process are appropriate, compatible and functioning in the desirable direction?
(C) Premise control
(A) Collusion
(C) Differentiation

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40. Which of the following relationship strategies result into forming of a new
organization?
(B) Partnership
(C) Joint venture
(B) SBU strategy
(D) Global strategy
43. Countries derive their competitive advantage in international trade through their
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(C) SWOT analysis
47. Identify from the options given below, which one is not a source of business ethics?
(A) Religion
(B) Legal system
(C) Culture
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(A) Save water
(B) Save energy
(C) Save money
(D) Respect woman
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1. The elasticity of demand indicates
(A) The rate of response of demand to a change in price.
(B) The rate of change of demand to a change in income.
(C) The change in the tastes of consumers at different prices.
(D) The rate of response of demand to a change in supply.
2. A rightward shift in supply curve indicates
(B) An increase in quantity demanded
(C) An increase in supply
(D) Law of variable proportion
3. Which of the following is the condition of equilibrium for the monopolist?
(A) MR = MC (C) AR = MC = Price
(B) MC = AR (D) AC = AR
4. If the demand curve is a rectangular hyperbola, elasticity is
(A) 1 (C) infinity
(B) 0 (D) less than one
5. If both supply and demand increase by the same proportion,
(A) Quantity remains constant (C) Price increases
(B) Price remains constant (D) Quantity increases
6. What leads to rationing and black marketing under perfect competition?
(A) Price support (C) Decrease in supply
(B) Excess demand (D) Price control

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7. In Maslow‟s need hierarchy theory, which of the following is not high order
needs?
(A) Safety (C) Esteem
(B) Social (D) Self-Actualization
8. Feeling arising out of inadequate definition of roles is known as
(A) Role ambiguity (C) Role perception
(B) Role conflict (D) Role expectation
9. A type of group discussion process in which members of the group are encouraged
to generate as many imaginative and creative ideas in a relatively short period of time is
known as
(A) Brain storming (C) Simulation
(B) Group working (D) Group effect
10. The amount of satisfaction an individual anticipates from a particular outcome is

known as
(A) Theory Y (C) Valence
(B) Theory Z (D) Stress
11. A personality characteristic indicating one‟s willingness to do whatever it takes to

get one‟s own way is known as
(A) Locus of control (C) Job characteristic model
(B) Machiavellism (D) Personality legitimacy
12. The process of studying and collecting information relating to a specific job is
known as
(A) Motion study (C) Job specification
(B) Job analysis (D) Job enrichment
13. The horizontal expansion of jobs is termed as
(A) Job enlargement (C) Job sharing
(B) Job enrichment (D) Job involvement

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14. A bargaining which is based upon zero-sum game is known as
(A) Integrative bargaining (C) Distributive bargaining
(B) Principled bargaining (D) None of these
15. The final link in the communication process that puts the message back into the
system as a check against misunderstandings is described as
(A) Decoding (C) Feedback Loop
(B) Feedback (D) None of these
16. In the „Managerial grid‟ 9, 1 style is termed as
(A) Team Management (C) Authority Obedience
(B) Country Club Management (D) Improvised Management
17. Which of the following is not one of the 5s of housekeeping?
(A) Sort (C) Specialize
(B) Systemize (D) Shine
18. Internal rate of return method applied for capital budgeting decision
(A) Allows to take different discount factors.
(B) Uses cost of capital as discount factor.
(C) May give more than one IRR.
(D) Distinguishes between the IRR for lending and borrowing decision.
19. Beta in the context of security analysis indicates
(A) Systematic risk (C) Total risk
(B) Unsystematic risk (D) All of the above
20. Assuming constant rate of growth of dividend, value of share will be equal to
(A) Po = Do/r – g (C) P1 = Do/r + g
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(B) P0 = D1/r – g (D) P1 = D0 + g
21. Theoretically, with the issue of rights share the value of existing shares
(A) Will increase (C) will reduce
(B) Will not change (D) May increase or decrease
22. When the cash flow outcomes of succeeding period depends on what has happened
before, the probabilities of succeeding period are known as
(A) Joint probabilities (C) simple probabilities
(B) Conditional probabilities (D) decision tree
23. A high risk, high-yield often unsecured bond rated below investment grade is
known as
(A) Income-bond (C) Junk bond
(B) Subordinated debentures (D) Serial bond
24. Who coined the term 4 Ps?
(A) Philip Kotler (C) Peter Drucker
(B) Stanton (D) McCarthy
25. In the buying decision process, what is the term used for a person who first suggests
buying the product?
(A) Consumer (C) Initiator
(B) Decider (D) Influencer
26. Which of the following is in order?
(A) Product, place, price and promotion.
(B) Price, product, promotion and place.
(C) Promotion, place, product and price.
(D) Product, price, place and promotion.
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27. Which of the demographic variable is not used by marketers for demographic
segmentation?
(A) Income (C) Family life cycle
(B) Gender (D) Poverty
28. Which of the following indicates the distinction between Advertising and
Publicity?
(A) Advertising is expensive, publicity is less expensive.
(B) Advertising is through T.V., publicity is through print media.
(C) Advertising is a paid form of communication; Publicity is not a paid form of

communication.
(D) Advertising is through film stars, Publicity is through cricketers.
29. Which of the following order about product life cycle is correct?
(A) Introduction, Maturity, growth and decline.
(B) Introduction, growth, maturity and decline.
(C) Introduction, decline, maturity and growth.
(D) Growth, maturity, decline and introduction.
30. Companies that attack other firms including market leader in an attempt to build
market share are called
(A) Market followers (C) Market penetrators
(B) Market challengers (D) Market Nichers
31. Tactical production planning decision includes
(A) Layout planning (C) Production process
(B) Machine loading (D) Plant location
32. Which of the following is not to be considered for plant location decision?
(A) Availability of labor (C) Availability of raw material
(B) Availability of power (D) Brand image
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33. Moving average forecasting is used to
(A) Establish the trend of the past
(B) Forecast the current demand
(C) Forecast market competition
(D) Forecast Quasi demand
34. Work measurement is essential for
(A) Labor utilization and efficiency
(B) Determining the delivery dates
(C) Introducing financial incentive schemes
35. E O Q refers to the quantity for which
(A) Fixed cost is equal to variable cost
(B) Carrying cost is equal to ordering cost
(C) Average cost is equal to marginal revenue
(D) Total contribution minus cost of goods
36. A company is producing steel rods. Assuming that the length of steel rods follows
normal distribution with mean 10 inches & variance equal to 0.04 sq. inches. The
standard error of mean, when a random sample of 16 is taken, will be
(A) 4/10 (C) 2/40
(B) 2/20 (D) None of these
37. Judgment sampling to select the sampling units from population is termed as
(A) Probability sampling (C) Systematic sampling
(B) Non-probability sampling (D) None of these
38. Wide area network is

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(D) None of these.
39. Correlation coefficient between two variables X & Y is calculated as 0.63. If the
measurements of X & Y are changed to U = X – 10 & V = Y + 5 the new value of
correlation coefficient will be
(A) 0.063 (C) 0.63
40. A person appears in an interview for a job in the two companies say X and Y. The
chances of selection in company X is 0.7 and chances of selection in Y is 0.6.
The probability of his selection in either of the two companies will be
(A) 0.42 (C) 0.50
41. Which of the following helps a manager to identify the opportunities and threats in
the competitive industry environment?
(D) Market Research
(A) Operations (C) Technology development
(B) Firm infrastructure (D) Procurement
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44. Business unit which holds a large market share in a mature and slow growing
industry is called
(A) Star (C) Question Mark
(B) Dog (D) Cash cow
45. Which strategy requires a company to concentrate its efforts in one or more narrow
segments instead of broad based strategy?
(A) Cost leadership (C) Differentiation
(B) Focus (D) None of the above
47. Which of the following has been entrusted with the responsibility of developing and
supporting small business?
(A) IDBI (C) NABARD
(B) RBI (D) SIDBI
(B) C. K. Prahlad (D) Peter F. Drucker
(A) Functions efficiently without harming the society
(B) Abjures the profit motive
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1. Price elasticity of demand is best defined as:
(A) The change in the tastes of consumers at different prices
(B) The rate of response of demand to a change in supply
(C) The rate of response of demand to a change in price
(D) The rate of change of demand to a change in price
2. Giffen goods are those goods:
(A) For which demand increases as price increases
(C) Which have high income elasticity of demand
(D) Which give rise to a decrease in demand
3. The situation where the market consists of only two buyers, then it is called: (A)
Monopsony
(B) Duopsony
(C) Monopoly
(D) Duopoly
4. In India, which method is used to measure National Income in service sector?
(A) Expenditure method (C) Output method
(B) Income method (D) Value added method
5. Short run cost curves are influenced by:
(A) Principles of return to scale (C) Law of variable proportion
(B) Economies of scale (D) Diseconomies of scale
6. The term opportunity cost refers to:
(A) Variable cost
(B) Short run cost
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(C) Cost of one product in terms of production of others forgone
7. Which of the following is not one of the ego states of transactional analysis?
(A) Child (C) Adult
(B) Young (D) Parents
8. Where anchors are illustrations that help to define as superior, average or below
average, the behavior of the employee, the rating scale is known as:
(A) Behavioral expectation scale (C) Forced choice description
(B) Behavioral observation scale (D) Grading scale
9. In the decision tree model of vroom and yetton the style when the leader shares the
problem with subordinates as a group, obtains collective ideas, and then makes the
decision is identified as:
(A) A I (B) A I I (C) C I (D) C I I
10. Leaders who provide individualized consideration and intellectual stimulation and
who possess charisma is known as:
(A) Transactional Leaders (C) Situational Leaders
(B) Transformational Leaders (D) Visionary Leaders
11. The drive to become what one is capable of becoming is:
(A) Self-Awareness (C) Self-Efficiency
(B) Self-Actualization (D) Self-Esteem
12. Which of the following is not one of the career anchors?
(A) Managerial competence (C) Personal competence
(B) Technical - functional competence (D) Security
13. Theory “Z” has been propounded by:
(A) McGregor (C) Maslow
(B) Ouchi (D) Skinner
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14. Which of the following is not within the scope of “Adjudication”?
(A) Conciliation (C) Industrial Tribunal
(B) Labor Court (D) National Tribunal
15. Outplacement services are provided to employees who have been:
(A) Dismissed (C) Retired
(B) Rendered surplus (D) Given voluntary retirement
16. What notice period is required for going on strike/lockout in public utility services?
(A) One week (C) Six weeks
(B) Three weeks (D) Nine weeks
17. Modifying methods of performing a job to reduce the levels of skill or skills
demanded is known as:
(A) Multi - tasking (C) Multi - skilling
(B) De - skilling (D) None of these
18. The computation of NPV is based on the assumption that:
(A) Cash flows for each year remain constant
(B) Net present value can never be less than zero
(C) Intermediate cash flows are being reinvested at the discount factor
(D) Discount factor should remain constant throughout the life of the project
19. For determination of cost of equity the formula used is:
(A) Rate of interest (1 — t)
(B) Rate of dividend (1 — t)
(C) Rate of Dividend (Face value — Issue Price)/n
(D) D1 + g
Po
711
20. According to MM - Approach proposition - I, value of firm is:
(A) Independent of capital structure
(B) Dependent on capital structure
(C) Dependent on tax-rate of the enterprise
(D) Dependent on risk of the enterprise
21. A stable dividend policy indicates:
(A) Stable earning/price ratio (C) Stable pay-out ratio
(B) Stable price/earnings ratio (D) Stable earnings per share
22. The vertical merger represents merger of firms engaged in:
(A) The same line of business
(B) Different stages of production in an industry
(C) Unrelated lines of business
23. The degree of total leverage is equal to:
(A) Percentage change in EPS/percentage change in sales
(B) Percentage change in EBIT/percentage change in sales
(C) Percentage change in EPS/percentage change in EBIT
(D) Percentage change in sales/percentage change in EBIT
24. Changes in the population characteristics such as age, gender, race, marital status,
income and education are the examples of:
(A) Geographic characteristics (C) Psychographic characteristic
(B) Cultural characteristics (D) demographic characteristics
25. Which of the following is not constituent of promotion-mix?
(A) Advertising (C) Direct marketing
(B) Sales promotion (D) Publicity
712
26. Which of the following factors does not influence the pricing strategy of a firm?
(A) Market (C) Cost
(B) Competition (D) R & D
27. Who coined the term “Marketing Myopia”?
(A) Peter Drucker (C) Philip Kotler
(B) Stanton (D) Theodore Levitt
28. In the diffusion of innovation who are the people not willing to try out the product?
(A) Innovators
(B) Progressive people
(C) Early adopters
(D) Early majority
29. Which of the following is not a variable for segmenting the market?
30. At which stage of new product development process, the launching of new product
will take place:
(A) Concept development
(B) Marketing strategy development
(C) Test marketing
(D) Commercialization
31. Strategic production planning decisions include:
(A) Quality development (C) Manpower planning
(B) Make or Buy decision (D) Layout planning
32. Which one of the following is not the type of Plant Layout?
(A) Process Layout (C) Fixed position Layout
(B) Product Layout (D) Selection Layout
713
33. Production control is concerned with:
(A) Establishment of Quality Standard norms
(B) Execution of production plan
(C) Expediting the production process
(D) Product Quality control
34. Critical Path Method network analyses is done with the objective of:
(A) Determining the completion time for the project
(B) Determining the product quality
(C) Determining the production cost
(D) Determining the pay-back period
35. „Q‟ systems of inventory control provides for:
(A) Ordering the inventory when it normally equals to EOQ
(B) Ordering the inventory depending on the stock level on hand
(C) Optimization of inventory costs
36. In case of Binomial distribution, the mean is:
(D) None of these
37. Car hire firm has two cars which it hires out daily. The demand for car is distributed
as Poisson with mean 2. If the value of e2250.1353, the number of days out of 100 days
on which neither of the car is used are:
(B)Approximately 22 (D) None of these
714
38. A committee of four has to be formed from among 3 Economists, 2 Managers, 4
Doctors and one Statistician. The Probability that all 4 professions are represented on
the committee will be:
(A) 14/35 (B) 10/35 (C) 4/35 (D) 24/35
39. Correlation Coefficient is equal to:
(D) None of these
40. When Null hypothesis (Ho) is true and test rejects it, it is called:
(C) Level of significance (D) None of these
41. Which element identities the strategic factors that determine the future of a firm?
42. Which strategy provides a means for achieving a company‟s annual objectives?
(A) Marketing Strategy (C) Business Strategy
(B) Operating Strategy (D) Corporate Strategy
44. Which one of the following represents the best long run opportunity in a firm‟s
business portfolio?
715
45. A firm tries to achieve the lowest cost of production and distribution so that it can
set its prices at a lower level than its competitors. Which generic strategy it is
following?
46. Which method of product portfolio analysis helps in deciding which products are to
be retained and which are not to be retained?
(B) Huge Market
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How to use this eBook

Topic wise total questions details is given below:

S.No Topic Total number of

Financial Management Nature and Scope, Valuation Concepts and

Marketing Environment and Environment Scanning Marketing

Unit 6:- Production Management

Role and Scope of Production Management:- Facility Location: Layout

Probability Theory Probability Distribution- Binomial, Poisson, Normal

Unit 8:-Corporate Strategy

Concept of Corporate Strategy Components of Strategy Formulation,

Unit IX:- Entrepreneurship and Small Business

Ethics and Management System Ethical Issues and Analysis in

Investment Analysis and Decisions

Production Behavior and Cost Analysis

Input Reward Analysis and Decisions

Economic Environment Analysis

(1) (a), (b) and (c)

(2) (b), (c) and (d)

(3) (a), (b) and (d)

(4) (a), (c) and (d)

(a) Qo-Q1 X Po+ P1 ( b) Qo-Q1 XPo

Po-P1 Qo+Q1 Po-P1 Q1

(c) Qo-Q1 X Po (d) Qo-Q1 X P1 (e) Qo-Q1 X P1

Po-P1 Qo Po-Q1 Q1 Po-P1 Qo

(1) (b), (c) and (e)

(2) (a), (b) and (e)

(3) (a), (c) and (e)

(4) (b), (c) and (d)

In case the producer‟s equilibrium shifts to a higher isoquant due to decrease in

(1) Product Possibility Curve (2) Price Factor Curve

(3) Expansion Path (4) Product Line

Which one of the following statements is not correct?

Marginal cost declines at a faster rate as compared to the average cost.

Marginal cost rises at a faster rate as compared to the average cost.

Marginal cost equals average cost where average cost is minimum.

Average cost equals marginal cost where marginal cost is minimum.

Cost - Plus pricing is not suitable for:

(1) Product Tailoring (2) Profit Maximizing

(3) Monopsony Pricing (4) Public Utility Pricing

Production and Cost Analysis

Pricing and Investment Decisions

Factor pricing Decisions

Price elasticity of demand for a product is measured by

(Where Ed = elasticity of demand, Q = Quantity, P = Price and Δ = represents

(1) Monopoly pricing (2) Skimming pricing

(3) Penetrating pricing (4) Differential pricing

Loss Leader a. Locational price differentials

Unchanged Pricingb. Products with high initial demands

Basing Point pricing c. Product line pricing

Skimming Pricing d. Oligopoly pricing

Average annual rate of return technique

Payback period technique

Net present value technique

Profitability index technique

Maximization of a firm‟s growth rate ii. Cyert-March Hypothesis

(iii) (iv) (i) (ii)

If a 100% scale-efficient plant has 92% technical efficiency and 88.5%

(i) (ii) (iii) (iv)

(2) (iv) (ii) (i) (iii)

(iv) (ii) (iii) (i)

(ii) (iv) (iii) (i)

Attitudes 1. Beliefs that individuals possess certain characteristics because of their

Prejudice 3. Positive or negative attitudes held by individuals toward their jobs.