MANAGEMENT
PAPER – III
Note : This paper contains seventy five (75) objective type questions of two (2) marks each. All questions are compulsory.
1. From the following two statements of Assertion (A) and Reasoning (R), indicate the correct code :
Assertion (A) : The quantity of a product demanded invariably changes inversely to changes in its price.
Reason (R) : The price effect is the net result of the positive substitution effect and negative income effect.
Codes :
(1) (A) and (R) both are correct.
(2) (A) is incorrect but (R) is correct.
(3) (A) is correct but (R) is incorrect.
(4) (A) and (R) both are incorrect.
2. Match the items of the List – I with that of the List – II and suggest the correct code from the following :
3. Which one of the following combinations may not render the investment multiplier inapplicable ?
(1) Net imports, undistributed profits and taxation.
(2) Excess stocks of consumption goods, debt cancellation and savings.
(3) Price inflation, public investment programmes and strong liquidity preference.
(4) Closed economy, unemployment in the economy, constant marginal propensity to consume.
4. Match the items of the List – I with that of the List – II and suggest the correct code from the following :
5. Match the following and indicate the code of correct matching :
6. Boss offers an employee a promotion which has huge increase in salary along with a new title. It also requires employee to work ten hours more per week along with shifting to a remote place. It is an example of which one of the following ?
(1) Approach conflict
(2) Approach – Approach conflict
(3) Approach – Avoidance conflict
(4) Avoidance – Avoidance conflict
7. Which one of the following is not an example of semantic barrier ?
(1) Poorly chosen words and phrases
(2) Faulty translation
(3) Use of symbols that have various meanings
(4) Guarding against certain type of information
8. Assertion (A) : Equity theory of work motivation is based on social exchange process, in which individuals make contributions (inputs) and expect certain rewards (outcomes).
Reason (R) : Individuals decide whether or not a particular exchange is satisfactory by comparing their inputs and outcomes with those of others and try to rectify inequality.
Codes :
(1) (A) is correct but (R) is not correct.
(2) (A) is not correct but (R) is correct.
(3) Both (A) and (R) are correct and (R) is right explanation of (A).
(4) Both (A) and (R) are correct but (R) is not the right explanation of (A).
9. Which one of the following methods of performance appraisal involves ranking employees from best to worst in a particular trait ?
(1) Graphic Rating Scale method
(2) Forced Distribution method
(3) Paired Comparison method
(4) Alternation Ranking method
10. Which one of the following is not a basic feature of ‘Scanlon Plan’ ?
(1) Philosophy of competition
(2) Identity
(3) Competence
(4) Involvement system
11. A union of electricians working in different industries is called by which one of the following ?
(1) Craft Union
(2) Industrial Union
(3) General Union
(4) National Union
12. Which one of the following is not correct about voluntary retirement scheme in public enterprises ?
(1) It was designed to help enterprises rationalise their surplus manpower.
(2) Salary for the purpose of VRS consists of basic pay only.
(3) Benefits are in addition to money that has accrued to provident fund.
(4) Benefit is tax-free severance payment.
13. In case Mutual Funds invest in the securities whose price variations suggest the general price movement, it is called
(1) Hedge Fund
(2) Index Fund
(3) Growth Fund
(4) Balanced Fund
14. Indicate the correct code of the combinations of the following methods commonly used for capital budgeting
a. Payback Period
b. Profitability Index
c. Utility theory
d. Internal rate of return
Codes :
(1) a, b and c
(2) b, c and d
(3) a, b and d
(4) a, c and d
15. Match the items of List – I with those of List – II and indicate the correct code from the following :
16. NPV and IRR methods of investment evaluation may give divergent accept-reject decisions on account of which of the following ?
a. Varying initial investment
b. Divergent cash flows from the investment projects
c. Disparity in the lives of the investment projects
Indicate the correct code of their combinations
Codes :
(1) a and b only
(2) b and c only
(3) a and c only
(4) a, b and c all
17. Match the items of List – I with the items of List – II and select the code of correct matching :
18. Match the items of List – I with the items of List – II and select the code of correct matching :
19. “The manufacturer threatens to withdraw a resource or terminate a relationship if intermediaries fail to cooperate”, refers to which one of the following channel power ?
(1) Referent power
(2) Coercive power
(3) Legitimate power
(4) Reward power
20. Assertion (A) : A company’s positioning and differentiation strategy must change over the product life cycle.
Reason (R) : A company’s product, market and competitors change over the product life cycle.
Codes :
(1) (A) is correct, but (R) is incorrect.
(2) (A) is incorrect but (R) is correct.
(3) Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(4) Both (A) and (R) are correct, and (R) is the right explanation of (A).
21. The following information is given :
Expected usage of 50,000 units in a period of 250 days
Cost of processing an order Rs. 20 per order
Carrying cost per unit Rs. 0.50 for the period lead time on an order : 5 days
Company wants to keep a reserve supply of two day’s usage.
How many units will be included in the reorder point ?
(1) 2000
(2) 1000
(3) 400
(4) 1400
22. Statement – I : A variable in the Linear Programming problem representing the unused quantity of an input resource is called surplus variable.
Statement – II : Values of the variables in the objective function of the dual of a primary problem denote shadow prices of the variables.
Codes :
(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.
23. The least amount of time an activity is expected to consume. Which one of the following relates to the above expression as per PERT language ?
(1) Expected time
(2) Most likely time
(3) Optimistic time
(4) Pessimistic time
24. Which one of the following is not covered while considering the types of costs involved in quality control ?
(1) Preventive costs
(2) Manufacturing costs
(3) Inspection costs
(4) Failure costs
25. Match the items of List – I with the items of List – II and indicate the code of correct matching :
26. When a researcher wants to select a representative sample to assess different parameters from a large sized finite heterogeneous population, which one of the following sampling techniques is the most appropriate ?
(1) Judgemental sampling
(2) Simple random sampling
(3) Stratified random sampling
(4) Quota sampling
27. Statement – I : The mean of the sampling distribution of mean is equal to the parameter value of the population mean.
Statement – II : Stratified sampling technique is unrestricted probability (random) sampling technique.
Codes :
(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.
28. You are given the following information about advertising expenditure and sales :
Correlation coefficient between advertising expenditure and sales = 0.80. What is the likely sales for advertising budget of Rs. 15 lakh ?
(1) 120 lakh
(2) 106 lakh
(3) 58 lakh
(4) 48 lakh
29. Assertion (A) : McDonald’s India Pvt. Ltd., the wholly-owned subsidiary of the US based fast-food giant McDonald’s Corporation, along with Coca-Cola, is developing a fruit based beverage, to be retailed exclusively at McDonald’s outlets.
Reason (R) : Organizations rightly try to diversify in order to spread their risks across several industries.
Codes :
(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.
30. Statement – I : Competitors analysis begins with identification of potential competitors.
Statement – II : An industry analysis gives information regarding probable sources of competition.
Codes :
(1) Statement – I is correct but II is incorrect.
(2) Statement – II is correct but I is incorrect.
(3) Both the Statements are correct.
(4) Both the Statements are incorrect.
31. Strategic management consists of which one of the following combinations :
(a) Environmental scanning
(b) Strategy for outplay
(c) Strategy formulation
(d) Strategy implementation
(e) Evaluation and control
Codes :
(1) (a), (b), (c) and (d) only
(2) (b), (c), (d) and (e) only
(3) (a), (c), (d) and (e) only
(4) (b), (c) and (d) only
32. Michael Porter’s Five Forces Model includes which one of the following combinations ?
(a) Threat of new potential entrants
(b) Threat of substitute product / service
(c) Bargaining power of suppliers
(d) Bargaining power of buyers
(e) Rivalry among current competitors
(f) Rivalry among prospective competitors
Codes :
(1) (a), (c), (d), (e) and (f)
(2) (a), (b), (d), (e) and (f)
(3) (a), (b), (c), (e) and (f)
(4) (a), (b), (c), (d) and (e)
33. Which one of the following is not a common motivation of an entrepreneur ?
(1) Desire to maintain the status quo
(2) Search for more rewarding work
(3) Search for personal and professional growth
(4) Desire for independence
34. The SFURTI programme of the government is to boost production in which one of the following industries ?
(1) Auto-components industry
(2) Industries using renewable energy
(3) Khadi and village industry
(4) Construction industry
35. Match the items of List – I with the items of List – II and identify the correct code of combination :
36. Statement – I : Entrepreneurs recognize opportunities where others see chaos or confusion.
Statement – II : Entrepreneurs bring aggressive capital for the existing business in traditional market place.
Codes :
(1) Statement – I is correct but II is not correct.
(2) Statement – II is correct but I is not correct.
(3) Both the Statements are correct.
(4) Both the Statements are incorrect.
37. Social responsibility of business while appropriating natural resources by a corporate entity has been recommended in which one of the following ?
(1) Montreal Protocol of 1987
(2) Millennium Development Goals 2008
(3) Sustainable Development Goals 2015 in Global Sustainability Report
(4) UNDP Human Development Report
38. Disclosure of corporate governance practice and its compliance has been stipulated in which one of the following ?
(1) Directors’ Responsibility Statement under Section 134 of the Companies Act 2013.
(2) Auditor’s Report
(3) C.A.G. Report
(4) Report of the SEBI and MCA 21
39. Kumar Mangalam Birla Committee Report, Ramesh Chandra Committee Report, Cadbury Committee Report primarily focus on which one of the following ?
(1) ethical issues in business practice and marketing practice
(2) health programme of the employees in an organisation
(3) issues relating to corporate governance practice
(4) gender issues in management and equality for all
40. ‘The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.
This may be attributed rightly to which one of the following ?
(1) ethical responsibility of business
(2) corporate social responsibility
(3) commitment towards employee welfare
(4) compliance with the provisions of the Plantation Workers Act.
41. Arrange the steps of diagnostic model of human resource management in the correct sequence from the first to the last. Select the code of correct sequence :
a. Evaluate
b. Prescribe
c. Diagnose
d. Implement
Codes :
(1) c, b, a, d
(2) c, b, d, a
(3) a, c, d, b
(4) a, c, b, d
42. Which one of the following is a training technique in which trainees act out parts in a realistic management situation ?
(1) Action learning
(2) Role playing
(3) Behaviour modelling
(4) Case study
43. Match the following and indicate the code of correct matching :
44. The agreement arrived at during the course of conciliation proceeding in industrial disputes is known as
(1) Settlement
(2) Award
(3) Reward
(4) Accord and sanction
45. Results of a period that may occur at the initial career entry when the new employee’s high job expectations confront the reality of a boring, unchallenging job. This may rightly be attributed to which one of the following ?
(1) Reality Shock
(2) Mentoring Shock
(3) Mental upcharge
(4) Career upset
46. The two dominant aspects of industrial relations scene in the modern industrial society are covered in which one of the following ?
(1) Conflict and conciliation
(2) Cooperation and conciliation
(3) Conflict and cooperation
(4) Cooperation and codetermination
47. The decision of the adjudication authority and arbitrator in disputes is termed as
(1) Settlement
(2) Award
(3) Reward
(4) Accord and approval
48. In case of a domestic enquiry, which one of the following is not correct about enquiry officer ?
(1) He has to follow the principles of natural justice.
(2) He can recommend punishment alongwith the report of findings.
(3) He is generally an officer of the establishment but in some cases enquiry is also held by some outside agency.
(4) He can take final decision about punishment and issue an order inflicting punishment.
49. Match the items of List – I with the items of List – II and select the code of correct matching :
50. Select the correct sequence of steps in setting a pricing policy :
(a) Determining Demand
(b) Analyzing competitors’ Costs, Prices and Offers
(c) Selecting the Final Price
(d) Selecting the Pricing Objective
(e) Estimating costs
(f) Selecting a pricing method
Codes :
(1) (d), (a), (e), (b), (f) and (c)
(2) (a), (e), (b), (d), (f) and (c)
(3) (a), (b), (e), (d), (f) and (c)
(4) (a), (b), (c), (d), (e) and (f)
51. Which one of the following is a digital communications technique that involves improving visibility and monitoring sentiment within social networks and blogs ?
(1) Email marketing
(2) Display advertising
(3) E-PR
(4) Search engine optimization
52. Which one of the following is the report of the company’s strengths and weaknesses relative to various competitors ?
(1) Competitor value analysis
(2) Customer value analysis
(3) Customer profitability analysis
(4) Customer perceived value
53. A company prices a 2 litre bottle of its mineral water at Rs. 30 but 60 ml of the same water in a moisturizer spray for Rs. 75. This is an example of which one of the following pricing practices ?
(1) Product-Form pricing
(2) Customer-segment pricing
(3) Image pricing
(4) Location pricing
54. Assertion (A) : Companies must manage service quality by understanding the effects of each service encounter.
Reason (R) : Customer’s expectations play a critical role in their service experiences and evaluations.
Select the correct codes :
Codes :
(1) Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(2) Both (A) and (R) are correct and (R) is the right explanation of (A).
(3) (A) is correct but (R) is incorrect.
(4) (R) is correct but (A) is incorrect.
55. Statement – I : Direct marketing is a non-interactive marketing system.
Statement – II : Direct marketing uses one or more media to effect a measurable response or transaction at any location.
Select the correct code :
Codes :
(1) Both the Statements are correct.
(2) Both the Statements are incorrect.
(3) Only Statement – I is correct.
(4) Only Statement – II is correct.
56. Which one of the following refers to “two or more unrelated companies put together resources or programmes to exploit an emerging market opportunity” ?
(1) Holistic marketing
(2) Horizontal marketing system
(3) Hub and spoke system
(4) Co-branding
57. Credit sales of a firm in a certain year amounted to Rs. 12,00,000 and the sundry debtors outstanding at the beginning and the end of the year amounted to Rs. 1,20,000 and Rs. 80,000 respectively. Indicate the correct code for the debtors turnover ratio and the average collection period from the following :
(1) 10 and 1.2 months
(2) 12 and 1 month
(3) 15 and 0.8 month
(4) 6 and 2 months
58. Inventory control system concerns with which combination of the following :
a. ABC Inventory system
b. JIT system
c. Re-ordering system
d. Outsourcing system
Codes :
(1) a, b and c
(2) b, c and d
(3) a, b and d
(4) a, c and d
59. The credit policy of a firm is not decided for which combination of the following ?
a. Maximisation of sales
b. Minimisation of bad debt losses
c. Maximisation of shareholder’s wealth
d. Minimisation of adverse effect on the volume of sales
Codes :
(1) a, b and c
(2) b, c and d
(3) a, c and d
(4) a, b and d
60. Match the items of List – I with those in List – II and indicate the correct code for the following :
61. Indicate the correct code for the liquidity ratios from the following :
a. Current Ratio b. Acid Test/Quick Ratio
c. Total Assets Turnover Ratio d. Defensive-Interval Ratio
Codes :
(1) a, b and c
(2) b, c and d
(3) a, b and d
(4) a, c and d
62. Non-payment by solvent debtor till due date involves which one type of cost from the following ?
(1) Default cost
(2) Delinquency cost
(3) Capital cost
(4) Extra collection cost
63. Banks normally provide working capital finance in forms of which combination of the following ?
a. Term loans
b. Discounting of bills
c. Overdrafts
d. Cash credits
Codes :
(1) a, b and c
(2) b, c and d
(3) a, b and d
(4) a, c and d
64. In case a product’s selling price (per unit) is Rs. 20, the variable cost (per unit) is Rs. 14, fixed factory overheads, (per year) is Rs. 5,40,000 and fixed selling overheads is Rs. 2,52,000, the break-even in terms of sales volume and the number of units to be sold to earn a profit of Rs. 60,000 will be which one of the following ?
65. Anti dumping duty is levied on which one of the following :
(1) The goods exported from home country to encourage more export to a sovereign.
(2) The goods imported into the home country for the purpose of re-export to another sovereign.
(3) The dumped imports which is causing damage to the domestic industry in the importing country.
(4) The dumped imports which are meant for re-entry into a sovereign for further trade.
66. Assertion (A) : Export Processing Zones (EPZs) were set up as an enclave separated from the Domestic Tariff Area (DTA) and converted into SEZs.
Reason (R) : The Export Oriented Units (EOUs) scheme is complimentary to the EPZ and is introduced to enable exporters enjoy liberal package of incentives.
Codes :
(1) (A) is correct but (R) is incorrect.
(2) (A) is incorrect but (R) is correct.
(3) Both (A) and (R) are correct but (R) is not the right explanation of (A).
(4) Both (A) and (R) are correct and (R) is the right explanation of (A).
67. Challenges before international business such as base erosion and profit shifting (BEPs), tax avoidance and shifting between a holding company and a subsidiary located in two different tax sovereigns may be resolved by which one of the following ?
(1) Mandate of Viena convention
(2) Montreal protocol
(3) Technology transfer transactions, cyber space
(4) Kyoto protocol
68. An efficient dispute settlement mechanism under WTO was brought in by which one of the following :
(1) The Uruguay Round Agreement
(2) Doha Round
(3) UNDP Human Development Report 2000
(4) The Uruguay and Geneva Round of Negotiation
69. The undernoted items may be categorized into which one of the following ?
Export quota, exchange control, profit remittance restrictions, subsidies, government procurement
(1) Tariffs
(2) Unrestricted tariffs
(3) Non-tariff barriers
(4) Hybrid of tariff and no-tariff barriers
70. The undernoted items are categorized into which one of the following international product decisions for global business ?
Straight extension, product adaptation, communication extension, communication adaptation, product extension, dual adaptation and innovation
(1) Product diversification
(2) Product market segmentation
(3) Product communication strategies
(4) Market segmentation and product promotion
71. Match the items given in List – I with the items of List – II and indicate the code of correct matching :
72. To comply with the requirement of TRIPS agreement and to protect products of Indian origin, which one of the following was enacted ?
(1) WTO Compliance Act 1999
(2) Geographical Indication of Goods (Registration and Protection) Act 1999
(3) The Patents Act
(4) The Copyright Act
73. Which one of the following transactions can be carried on without any restriction or regulation of the RBI under the FEMA ?
(1) Transfer or issue of any foreign security by a person resident in India.
(2) Transfer or issue of any security by a person resident outside India.
(3) Drawal of foreign exchange for payments due on account of amortization of loans or for depreciation of direct investment.
(4) Export, import or holding of currency notes.
74. In international marketing, market selection process is generally done by considering which one of the following ?
(1) Farm related factors, market related factors, central banking measures related factors
(2) Farm related factors, market related factors.
(3) Market related factors, non-farm related factors, government related factors.
(4) Farm related factors, capital market related factors, and central banking measures related factors.
75. The exit of Great Britain from the European Union (EU) in June 2016 by a referendum has been announced as invalid by the London High Court on which one of the following reasons ?
(1) Referendum has got no legal sanction
(2) Exit was not as per the British law.
(3) Exit was not as per the EU law.
(4) The Brexit cannot be legal under Article 50 without approval of the British Parliament.
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