MANAGEMENT
Paper – II
Note : This paper contains fifty (50) objective type questions, each question carrying two (2) marks each. Attempt all the questions.
1. In case the price (P), quantity (Q), and changes (D) are represented by respective symbols given in the brackets, the price elasticity of demand (Ed) is measured by
(A) Ed = DQ/DP
(B) Ed = (DQ/Q)/(DP/P)
(C) Ed = DP/DQ
(D) Ed = (DP/P)/(DQ/Q)
2. 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
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 alongwith declining output in the economy is called
(A) Inflation
(B) Deflation
(C) Stagflation
(D) Demand-pull inflation
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 deflationary gaps are absent
(D) aggregate consumption is constant
6. Which of the following is a correct match ?
(A) McClelland – ERG Theory
(B) Skinner – Reinforcement Theory
(C) Vroom – Equity Theory
(D) Locke – Expectancy Theory
7. 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
8. According to Organisational Culture Inventory (OCI), an organisation 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
9. A matrix structure of organisation
(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. Organisational development (OD) is a planned change plus
(A) Evaluation
(B) Intervention
(C) Ability for self-renewal
(D) Reinforcement
11. Match the following :
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
14. Match the following :
15. The process of reorganising 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
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 :
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.
(A) Mega marketing
(B) Meta marketing
(C) Micro marketing
(D) Multistage marketing
23. Pricing decisions are most complex at which stage of the product life cycle ?
(A) Decline stage
(B) Growth
(C) Introduction
(D) Maturity
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
(A) Experimental Research
(B) Observation Research
(C) Statistical Research
(D) Survey Research
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
(D) None of the above
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 the expected monetary value as their decision criterion.
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 organisation 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 :
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
(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
33. What separates the physical aspects of data storage from the logical aspects of data representation ?
(A) Schema
(B) Relationships
(C) Constraints
(D) Data
34. 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
35. The simple probability of the occurrence of an event is called the
(A) Bayesian probability
(B) Conditional probability
(C) Joint probability
(D) Marginal probability
36. Indicate the statement which is not correct :
i. Credit risk is loss on account of default of repayment of loan.
ii. Liquidity risk is the risk on account of the mismatches of cash inflow and outflow in a firm.
iii. Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up.
iv. Forward rate agreement is a contract where a borrower / lender locks the interest rate and protects itself from the loss on account of change in the future interest rate.
Codes :
(A) i and ii
(B) ii and iii
(C) iii and iv
(D) None of the above
37. Which of the following facts are not correct 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 Code for the benefit of foreign service providers.
Codes :
(A) i and ii
(B) ii and iii
(C) iv only
(D) v only
38. Intra-firm transfer of technology is found when
(A) the price of technology development is very low.
(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
39. Match the theories of Foreign Direct Investment with their contributors :
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 the International 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.
41. A study conducted by the Entrepreneurship Development Institute of India, Ahmedabad, revealed that the possession of competencies is 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
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
43. 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
44. _________ means identifying and imitating the best in the world at specific tasks.
(A) Quality circle
(B) Bench marking
(C) Strategy
(D) Outsourcing
45. 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
(C) Continuous decrease in the price of its shares
(D) All of the above
46. Assertion (A) : Ethical relativism means that there are universal standards of human behaviour.
Reasoning (R) : Ethical behaviour is primarily personal behaviour conforming to standards of morality.
(A) (A) is correct, and (R) is the right explanation of (A).
(B) (A) is incorrect, and (R) is a correct statement in isolation.
(C) (A) and (R) both are incorrect.
(D) (A) is correct, but (R) is not the right explanation of (A).
47. Clause 49 of SEBI Regulations was amended on
(A) 15 August, 2000
(B) 26 August, 2003
(C) 26 January, 2007
(D) 14 February, 2008
48. 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
49. 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
50. Morality of an employee in a business organisation depends upon
(A) Individual disposition
(B) Understanding of business activities
(C) Understanding of individual in a group
(D) Family setup of individual employee
Latest Govt Job & Exam Updates: