1. The following is the demand function: Q = 100 – 5P
What will be the point price elasticity of demand at price ` 10?
(1) 2.00
(2) 1.00
(3) 0.85
(4) 0.50
Answer: (2)
2. 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
Answer: (3)
3. Match the items of List – I with the items of List
– II and select the code of correct matching:
List – I List – II
a. Sales Revenue i. Williamson’s Model
Maximization
b. Maximization of a firm’s
growth rate ii. Cyert-March Hypothesis
c. Maximization of Managerial Utility function iii. Baumol’s Theory
d. Satisfying behaviour iv. Marri’s Theory
model
Codes:
abcd
(1) iii iv i ii
(2) i ii iv iii
(3) ii iii i iv
(4) iv iii ii i
Answer: (1)
2. The firm aims at maximising its total sales revenue in the long run subject to a profit constraint.
(2) Both the statements are incorrect.
(3) Statement – I is correct while Statement – II is incorrect.
(4) Statement – I is incorrect while Statement – II is correct.
Answer: (4)
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 defence
(4) The process of reacting
Answer: (3)
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 firm generally does not have full information about the environment.
Codes:
(1) Both (A) and (R) are correct.
(2) Both (A) and (R) are incorrect.
(3) (A) is correct while (R) is incorrect.
(4) (A) is incorrect while (R) is correct. Answer: (1)
5. Statement – I: The accept-reject approach is adopt- ed 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.
(1) Both the statements are correct.
has a filtering mechanism or perceptual wall pre- venting the sensory data from being processed.]
Assertion (A): The physiological needs are essential for living but they are determined by social environ- ment.
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:
(1) Assertion (A) and Reasoning (R), both are cor- rect, but (R) is not right explanation of (A).
(2) Assertion (A) and Reasoning (R), both are cor- rect, and (R) is correct explanation of (A).
(3) Assertion (A) is correct, whereas Reasoning (R) is incorrect.
(4) Reasoning (R) is correct, whereas Assertion (A) is incorrect.
Answer: (2)
8. The basic emphasis of _________ theory of organ- isational design is on flat structure, decentraliza- tion and provision of informal organisation.
(1) Neo-classical theory
(2) Modern theory of systems approach (3) Matrix organisation theory
(4) Classical theory
Answer: (1)
9. The result variables as the component of mathe- matical model for measuring system’s effective- ness and efficiency in management science include _____
(1) Measures of performance
(2) Measures of effectiveness
(3) Payoffs and outcomes
(4) All the above
Answer: (4)
10. 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:
(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 incorrect.
(4) Both (A) and (R) are incorrect.
Answer: (1)
11. Most job descriptions contain sections that cover –
(1) Responsibilities and duties
(2) Job summary
(3) Working conditions
(4) All of the above
Answer: (4)
12. Match the items of List – I with the items of List – II. The items relate to evaluation and follow-up of training process.
List – I List – II
a. Results i. Document the learner’s immedi- ate response to the training.
b. Learning ii. Note supervisor’s reactions to learner’s performance follow- ing completion of the training.
c. Reaction iii. Use feedback devices or pre and post tests to measure what learners have actually gained.
d. Behaviour iv. Determine the level of improve- ment in job performance
Codes: abcd
(1) iii ii i iv
2) iv iii i ii
3) i ii iii iv
4) iv i iii ii
Answer: (2)
13. Which one of the following processes allows top management to diagnose the management styles of supervisors, identify potential, employee prob- lems, and take corrective action with individual supervisors as necessary?
(1) MBO
(2) Strategic performance appraisal
(3) Organization Development
(4) Upward feedback
Answer: (4)
14. Statement – I: In competency or in 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: Broadbanding results into increase in salary grades and ranges from 3 or 5 to 10 or more.
Codes:
(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.
Answer: (1)
15. Which one of the following is not a labour 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
Answer: (1)
16. Match the items of List – I with the items of List – II:
List – I 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 pres- ent value of anticipated net cash flows with the initial out- lay.
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 differ-ence 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
Answer: (4)
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 instalment will be _______.
(1) ` 3,633
(2) ` 3,951
(3) ` 3,333
(4) ` 4,233
Answer: (2)
18. Match the items of List – I with the items of List – II:
List – I
a. M.M. Hypothesis without taxes i. The cost of debt and cost of equity are assumed to be independent tothe capital structure.
b. Net operating income approach ii. In the absence of taxes a firm’s market value and the cost of capital
c. M.M. Hypothesis under corporate taxes iii. The cost of equity is
assumed to increase lin-
early with leverage.
d. Net income approach iv. The value of the firm will increase with debt due to
the deductibility of interest charges for tax computations and the value of the levered
firm will be 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
Answer: (1)
19. Explicit Resale Price Valuation method pre-sup- poses 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:
(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.
Answer: (3)
20. 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
Answer: (2)
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)
Answer: (2)
22. Which one of the following is a potential draw- back 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 spe- cific meaning for consumers.
(4) Different product features can appeal to con- sumers with different buying motives.
Answer: (1)
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 posi- tion
(2) changing its target market
(3) moving its brand into a less competitive position
(4) adversely positioning its product
Answer: (1)
24. Which one of the following explains “the knowl- edge and courtesy of employees and their ability to convey trust and confidence”?
(1) Empathy
(2) Responsiveness
(3) Reliability
(4) Assurance
Answer: (4)
25. Match the items of List – I with the items of List – II:
List – I
a. Rich- media ads
b. Pop-ups
c. Interstitials
List – II
i. Online ads that appear
between screen
changes on a website, espe- cially while a new screen is loading.
ii. Display ads that use eye- catching techniques such as float, fly and snapback.
iii. Ads that users can block through the use of applica- tions developed by web browser providers.
Codes: abc
(1) i ii iii
(2) ii i ii
(3) ii iii i
(4) iii i ii
Answer: (3)
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 qualita- tive 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:
(1) (I) is correct but (II) is incorrect.
(2) Both (I) and (II) are correct.
(3) Both (I) and (II) are incorrect.
(4) (II) is correct but (I) is incorrect. Answer: (2)
27. Match the items of List – I with List – II:
List – I List – II
a. PERT i. Strategies
b. CPM ii. Events
c. Game theory iii. Network
Codes:
abc
(1) i ii iii
(2) ii iii i
(3) iii ii i
(4) iii i ii
Answer: (2)
28. 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.
(1) Both the statements are correct.
(2) Both the statements are incorrect.
(3) Statement – I is correct while Statement – II is incorrect.
(4) Statement – I is incorrect while Statement – II correct.
Answer: (4)
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.
Statement. II: Monte Carlo is an approach for sim- ulating the probability distribution by associating and then selecting random numbers.
(1) Both the statements are correct. (2) Both the statements are incorrect.
(3) Statement. I is correct while Statement. II is incorrect.
(4) Statement. I is incorrect while Statement . II is correct.
Answer: (1)
30. 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
(3) 0.066 minutes
(4) 0.052 minutes
Answer: (3)
31. Which of the following sentences are true?
(i) 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.
(ii) A marginal probability is also known as uncondi- tional probability.
(iii) For three independent events, the joint probabil- ity 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 probability of either event A or B or both occurring P(A or B) = P(A) + P(B)
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.
Answer: (3)
32. Match the items of List. I with the items of List. II and indicate the code of correct matching in con- nection with probability distributions:
List. I (Mean List. II
and standard (Probability dis- tributions)
i. Normal distribution a. np
ii. Binomial distribution b. npq
iii. Poisson distribution c. 0,1
deviations)
Codes: abc
(1) i ii iii
(2) iii i ii
(3) iii ii i
(4) i iii ii
Answer: (*)
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?
(1) Chi-square test
(2) F-test
(3) z-test
(4) t-test
Answer: (2)
34. Match the items of List – I with the items of List – II and indicate the code of their correct match- ing with regard to correlation and regression analysis:
List – I
a. y xy x i. Co-variance between X and Y
b. (X–X–)(Y–Y–) n . x . y ii.Standard
error of coefficient of corre-lation
c. (X–X–)(Y–Y–) n iii.Regression coefficient of Y on X variable.
d. 1 –2 iv. Karl Pearson’s coefficient of correlation
Codes
abcd
(1) i ii iii iv
(2) ii i iv iii
(3) iii ii iv i
(4) iii iv i ii
Answer: (4)
35. Match the items of List – I with List – II:
List – I NList – 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 iii. Master file
system
d. Log-in allowed to only iv. Stock control
internal people
Codes: abcd
(1) iii iv i ii
(2) iv iii ii i
(3) iii i iv ii
(4) i ii iii iv
Answer: (1)
36. 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
Answer: (2)
37. When highly interrelated variables exist or when it is necessary to choose from several plausible alternatives, which one of the following should the strategist integrate in decision making?
(1) Analysis of facts
(2) Intuition
(3) Competitor’s strategy
(4) Global perspective
Answer: (2)
38. Assertion (A): In an industrial structure, the acquisi- tion of an existing firm in the industry might be a bet- ter move than starting-up a new venture.
Reasoning (R): There is evidence that internal development might be preferable to acquisition because of differences between culture and shared value.
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. Answer: (2)
39. Consider the following statements with reference to Porter’s five forces model of competitive analy- sis:
(a) As rivalry among competing firm intensifies, generally industry profits decline or in few cases, industry becomes inherently unattractive.
(b) Whenever new firms are allowed to enter a par- ticular industry, the intensity of competitiveness among firms becomes haphazard.
(c) Generally competitive pressures arising from the substitute products decrease as the relative price of substitute products decline.
(d) Bargaining power of suppliers affects the intensi- ty 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.
Answer: (2)
40. Match the items given in List – I with the items of List – II:
List – I
a. Vision
b. Mission
c. Goals
d. Objectives
List – II
i. General statements of the company’s intent.
ii. Desired future position of the company
iii. Operationalizing of mission
iv. Vivid idealised 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
Answer: (1)
41. 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.
(2) (II) is correct but (I) is incorrect.
(3) Both (I) and (II) are correct.
(4) Both (I) and (II) are incorrect.
Answer: (4)
42. Match the items of List – I with List – II: List – I List – II
a. A promotion assistance for development of Khadi i. SRUTI
b. A scheme of fund for ii. ISEC
registration of traditional industries
c. Interest subsidy eligibility for all institutions registered under KVIC iii. MDA
Codes: abc
(1) iii i ii
(2) iii ii i
(3) i iii ii
(4) i ii iii
Answer: (1)
43. 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
Answer: (3)
44. 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
Answer: (2)
45. 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
Answer: (3)
46. 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 liberalisation and globalisation, the old dirty games and ethical con- duct 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. Answer: (2)
47. 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
Answer: (3)
48. Gandhian concept of social responsibility is denoted by which one of the following?
(1) Social commitment concept
(2) Trusteeship concept
(3) Sustainable development concept
(4) Welfare concept
Answer: (2)
49. 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
Answer: (2)
50. 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
(3) (i) take choice seriously
(ii) improve ethical decision
(iii) discernment and discipline
(4) (i) good decision are both ethical and effective
(ii) take choice seriously
(iii) ethical actions
Answer: (1)
0 Comments