Test Paper

: III

Test Subject

: MANAGEMENT

Test Subject Code :

Test Booklet Serial No. : _______________________

OMR Sheet No. : _________________________________

K-1013

Roll No.
(Figures as per admission card)

Name & Signature of Invigilator/s

Signature: ____________________________________

Signature : ___________________________________

Name

Name

: ____________________________________

Time : 2 Hours 30 Minutes

Paper
: III
Subject : MANAGEMENT

Number of Pages in this Booklet : 24

1.
2.
3.

4.

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K-1013

Maximum Marks : 150

Number of Questions in this Booklet : 75

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8.

: ___________________________________

Instructions for the Candidates

1. Write your roll number in the space provided on the top of this page.
2. This paper consists of seventy five multiple-choice type of questions.
3. At the commencement of examination, the question booklet will
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Booklet will be replaced nor any extra time will be given.
4. Each item has four alternative responses marked (A), (B), (C)
and (D). You have to darken the oval as indicated below on the
correct response against each item.
Example :

where (C) is the correct response.

5. Your responses to the question of Paper III are to be indicated

in the OMR Sheet kept inside the Booklet. If you mark at any
place other than in the ovals in OMR Answer Sheet, it will not be
evaluated.
6. Read the instructions given in OMR carefully.
7. Rough Work is to be done in the end of this booklet.
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9. You have to return the test OMR Answer Sheet to the invigilators
at the end of the examination compulsorily and must NOT
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10. You can take away question booklet and carbon copy of
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11. Use only Blue/Black Ball point pen.
12. Use of any calculator or log table etc., is prohibited.
13. There is no negative marks for incorrect answers.

.../P.T.O.

*K1013*

Total Number of Pages : 24

O
III
W : D P
(75) G u WWw ,
Gv (2) APW . G W PvxX EP.
1.

2.

3.

O PW
?
(A)

, A ,
v, Zq, Q
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(B)

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AQ

(C)

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(D)

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OW

4.

P A
(A) BR P
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(C) AW BR v
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(D) Ai P AW
W

5.

P P v EXW Q
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(B) P JPRo
(C) P P JPRo
(D) P P JPRo

6.

a c P P W W D
W|P|W
(A) E XW hn , P W
bc
(B) PW A E
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P
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S P| ?
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ac

(B)

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(C)

P O

(D)

Pw

"QW' EW BRW vW
A W X
ESW
(A)

EW

(B)

P v P

(C)

P WW

(D)

aO

Paper III

K-1013

*K1013*

Total Number of Pages : 24

MANAGEMENT
Paper III
Note :

This paper contains seventy-five (75) objective type questions. Each question
carries two (2) marks. All questions are compulsory.
4. Recruitment is

1. Which are the functions of human

resource management ?
(A) Procurement,

(A) Evolving
procedure

development,

compensation,

integration,

maintenance and separation

(B) Planning, directing, controlling and

proper

selection

(B) Getting
enough
candidates to apply

potential

(C) Conducting proper tests to select

people

reviewing human resource

(D) Inviting candidates to apply

(C) Assessment, deployment and

management

5. A union meant to protect the interest and

rights of the non-manual employees is
called

(D) Training, moving, storming to

leaving

(A) White Collar Union

2. Which one of the following is not one of

(B) Blue Collar Union

the main reasons cited for stress at work ?

(A) Pay increase

(C) Red Collar Union

(B) Increased workload

(D) Brown Collar Union

(C) Change at work

6. High performance work practices are

characterized by

(D) Staff cut

(A) Improving knowledge, skills and

abilities of employees

3. The factors that influence the selection

of individuals career choices are usually

(B) Allowing managers to lead in their

own best style

referred to as
(A) Career anchoring
(C) Career goals

(C) Allowing employees to loaf on the

job as long as they can produce
average daily production levels

(D) Mentoring

(D) Decreasing employees motivation

(B) Career path

K-1013

Paper III

*K1013*
7.

Total Number of Pages : 24

EW O D PX
g AW P
?
(A) P A/A EW
W G

(B) v
PW /W|W EW
A PX ?
(C) P
v
P
P
(D) Zo
( ) E W
orPRW|X Ag
v
PWP W
BoW.
(A) EW (P), EXW
JPRo
(B) EXW Zo, JPRo
EX
(C) EW (P), EX
P
(D) EXW v, JPRo
EX

10.

D PXW J w G
P W E X
Y P X ?
(A) PP
(B) W|or W
(C) Jor W|or
(D) ac PP P W

11.

PXW PWP h
P|X ?
(A) P a PR
v WW
(B) A P E
WO BW
(C) W PRX R aoqPW
v
(D) P a
Rv

12.

P P A H ?
(A) A J B
(B) w PW
A P
vPW
(C) P
(D) |

13.

P AW W C ,
EW (P) PW
W JX C G
________ PX.
(A) P
(B) g
(C) K

8. ________

9.

P J G
(A) C EXW
EW WW J
a Q
(B) P W P
W v EW wPW
v J Q
(C) W
EW wPW P P

(D) P W P
W E W P R
wPW WY v J
QP aa

Paper III

(D)
4

L
K-1013

*K1013*

Total Number of Pages : 24

10. Employee involvement is part of all the

following management initiatives with
the exception of which one ?

7. Job analysis is concerned with which of

the following human resource planning
aspect ?
(A) Deciding how well someone is
performing his/her job

(A) Performance management

(B) What behaviours/qualities are

necessary to perform a job

(C) Total quality management

(B) Quality circles

(D) High performance work systems

(C) Hiring someone to do a job

(D) Estimating pay on job level in an
organisation

11. Which of the following is a feature of

industrial democracy ?

8. _________ are the three players in the

industrial relations system.

(A) Workplace consultation is extended

to non-wage issues

(A) Employer, Employee and Trade

Union

(B) There is transfer of ownership and

the means of production to workers

(B) Employers Organisation, Trade

Union and Employee

(C) Strike activity can only take place

following a secret ballot

(C) Employer,
Government

(D) Employee consultation is backed by

legislation

Employee

and

(D) Employers Federation, Trade

Union and Employee

12. What does discipline mean in the context

of the workplace ?

9. Collective bargaining is

(A) Enforcing compliance and order

(A) A process of consultation between

employees to decide their preferred
wages and conditions of
employment

(B) A system of rules signed to improve

and correct behaviour through
teaching or training
(C) Punishment

(B) A process of negotiation between

employers representatives and
employee representative to
determine the conditions of
employment

(D) Exercising control

13. In the absence of statutory requirements,
the employers may not provide even the
basic facilities to the employees. This is
the basic assumption of the

(C) When management imposes wages

and conditions of employment on
employees

(A) Religious theory

(D) A discussion between government

representatives and employers
representatives to decide upon fair
conditions of employment

K-1013

(B) Policing theory

(C) Appeasement theory
(D) Benevolence theory
5

Paper III

*K1013*
14.

Total Number of Pages : 24

EXW rp C
BPr hW ?

18.

(A)

(A) 1948

(B)

(B) 1976

(C)

(C) 1926

(D)

(D) 1961
19.
15.

16.

PXW WP
P|X ?

Ppr Q B
W Q A Q
P

(A)

hn

(A)

(B)

(B)

(C)

P~P W

(C)

WP

(D)

Q W|P|W

(D)

Zq P A A Zq
W X P X a c
v. D PR P|

20.

WP EW Pu B
S B P
(A)

Q~ wP

(A)

P A

(B)

P wP

(B)

JPRo

(C)

(C)

| wP

(D)

A wP

(D)

SvY O
21.

17.

w v W C B

EW PR |W
PW A Q
H PW ?

Ppr WW W
ac APW JX G
P P
(A)

Ppr P|

(A)

EW O

(B)

(B)

EW

E Ppr

(C)

(C)

EW O

Ppr SvP
WwP )

(D)

EW rW

(D)

Paper III

( Sv X

K-1013

*K1013*

Total Number of Pages : 24

14. In which year was the Employees State

18. The promotion criteria is always based on

Insurance Act enacted ?

(A) merit

(A) 1948

(B) seniority

(B) 1976

(C) merit and seniority

(C) 1926

(D) recommendations

(D) 1961
19. The person from whom the marketer

15. Which of the following is non cognitive

expects response, attention etc is called

traits ?

(A) consumer

(A) knowledge

(B) prospect

(B) motivation

(C) customer

(C) academic achievements

(D) buyer

(D) personality traits

20. When consumers begin to buy the

16. Unionised workers have traditionally

product less frequently is called

received higher wages than their non-

(A) Declining demand

unionised counterparts. This phenomenon is

(A) The representation gap

(B) Overfull demand

(B) Union wage premium

(C) Full demand

(C) The shock effect

(D) Irregular demand

(D) The sword of justice effect

21. After identifying market segments the

marketer then decides which gives the

17. A systematic procedure for determining

greatest opportunity is called

the relative worth of job is

(A) job analysis

(A) market positioning

(B) job evaluation

(B) target market

(C) job description

(C) market segmentation

(D) job specification

(D) value proposition

K-1013

Paper III

*K1013*
22.

23.

24.

25.

Total Number of Pages : 24

EP
ZP W
o
rP
P H P
W ?
(A)

(B)

PqW vvW

(C)

(D)

~ P A w
(A)

o vP

(B)

P r

(C)

v p

(D)

PR

| ( ) P v
P P
T C vW W
H PW ?
(A)

PqW qP

(B)

PqW |

(C)

PqW r

(D)

Ppr

QW, W vp
W EP P
v H PW ?
(A)

WP vp

(B)

WP vp W~WP

(C)

WP vp EW|

(D)

vp

Paper III

26.

""PqW '' G
Ppr
O P X C
Aw ?
(A) v p
(B) o vP
(C) P r
(D) v

27.

AaP A r E WY
P v Q H
PW ?
(A) J v
(B) W
(C) Ppr P
(D) WP

28.

W r | E
W|P|PR P|W C H
PW ?
(A) Po i aP
(B) $v Q
(C) W
(D) iP ~P|

29.

, Po W, W, B C
AW Ppr WWX
Ww H P ?
(A) vWP Wp
(B) iWP Wp
(C) vPW Wp
(D)

i Wp
K-1013

*K1013*

Total Number of Pages : 24

26. Marketing Myopia is a marketing

22. To build mutually satisfying long term

management concept developed by

relationships to earn and retain business

is called

(A) Theodor Levitt

(A) relationship marketing

(B) Peter Drucker

(B) marketing dashboards

(C) Michel Porter

(C) performance marketing

(D) Lisa Sanders

(D) holistic marketing

27. A person who offers informal advice or

information about a specific product is

23. The value chain concept has developed by

called

(A) Peter Drucker

(A) opinion leader

(B) Michel Porter

(B) reference group

(C) Theodor Lasitt

(C) market leader

(D) Mc Carthy

(D) loyal customer

24. A set of measures to quantity, compare

28. The specific mix of human traits that can

and interpret the marketing performance

be attributed to a particular product is

are called

called

(A) marketing matrix

(A) Family life cycle

(B) marketing mix

(B) Brand personality

(C) marketing myopia

(C) Reference group

(D) green marketing

(D) Social stratification

25. The extraction of useful information about

29. The division of market into groups on the

individuals, trends and segments from

basis of factors like age, family size,

the mass data is called

gender, income etc is called

(A) Customer database

(A) Demographic segmentation

(B) Customer data mining

(B) Geographic segmentation

(C) Customer data warehouse

(C) Behavioural segmentation

(D) Business database

(D) Life style segmentation

K-1013

Paper III

*K1013*
30.

31.

32.

33.

Total Number of Pages : 24

PWPW , Pw
P W P v P W H
P ?
(A) Ppr
(B) Ppr AO
(C) A PW
(D) Pp a

34.

$w W Y W P WX H
vP G WY
rP H PW ?
(A) $v W
(B) $v (W)
(C) $v hn
(D) $v PP

35.

Q E P P W Y
E P Pv LaP PW
H PW ?
(A) TW
(B) $v b|
(C) gq
(D) $wW

36.

P p r
a c
W
X Pw
Ppr ~W Ei B
E P H ?
(A) RW
(B) P$ Wv
(C) Wv
(D)

Paper III

37.

EP X A WPW o
v H PW ?
(A)

or a

(B)

(C)

E Ppr a

(D)

S P a

c R W OW
P R W v
H PW ?
(A)

E P Ww

(B)

Gv W Ww

(C)

E wW W

(D)

RW

$vW
P H WW ?
(A)

OP

(B)

vP AW

(C)

WvOW AW

(D)

WOW AW

"" h or acW
v ac PWY'' D PW
BR w.
(A) NOI
(B) NI
(C) MM

a Wv

(D)
10

P
K-1013

*K1013*

Total Number of Pages : 24

30. The firms that occupy second, third and

34. If the manufacturer selling directly to the

lower ranks in an industry are called

final customer, it is called

(A) Market challengers

(A) zero level channel

(B) Market followers

(B) service sector channel

(C) Runner up firms

(C) industrial marketing channel

(D) Market micher

(D) reverse-flow channel

31. The marketers vision of what the brand

35. The method of pricing in which charging

must be and do for consumers are called

a fixed fee plus a variable usage fee is

called

(A) Brand equity

(B) Brand promise

(A) By product pricing

(C) Brand knowledge

(B) Two part pricing

(D) Brand performance

(C) Product bundling pricing

(D) Price skimming

32. The formal statements of expected

product

performances

by

the

36. Consumers who show no loyalty to any

manufacturer are called

brand is known as

(A) Warranties

(A) Switchers

(B) Brand image

(B) Hard core loyals

(C) Co-branding

(C) Split loyals

(D) Ingredient branding

(D) Shifting loyals

33. When the market is highly price sensitive

37. The cost of capital declines when the

and a low price stimulates market growth

degree of financial leverage increases.

the best pricing strategy is

Select the approach related to the above

(A) Price skimming

(A) NOI Approach

(B) Penetration pricing

(B) NI Approach

(C) Reference pricing

(C) MM Approach

(D) Going-rate pricing

(D) Traditional Approach

K-1013

11

Paper III

*K1013*
38.

39.

40.

41.

Total Number of Pages : 24

PXW DX Jor
QR Pw |P b ?
(A) CP WW
(B) CP WW
(C) CP B W W

(D) CP W

42.

|P O
D P X W P RX
?
(A) xW ac XY
(B) q ac XY
(C) Jor ac XY
(D) | EP PXY

43.

(B)

JW P

(C)

JW

(D)

BRW

wP (r) v
ac (k) P wW P
A .
(B) r < k
(C) r = k
(D) r

44.

v W ________ ac
_____ S, Pwv,
o v Q v
A | wP
w wP P
v PX.
(A) Pu , Pu
(B) Wu , Wu
(C) Wu , Pu

Paper III

(A)

(A) r > k

"P C & ' vX |

| D P X W P R
X ?
(A)
(B) + c ac
(C) c ac
(D) c ac + r

(D)

D PX A v Z
PW W
PW
v
?

B v a c H
PW ?
(A)

wx

(B)

(C)

(D)

45. ABCO

D PX
B W W X
WwW ?

Pu , Wu
12

(A)

(B)

(C)

(D)

T
K-1013

*K1013*

Total Number of Pages : 24

38. Which one refers to cash flow under Net

42. Which of the following derivative is used

Present Value Method ?

to trade a stream of cashflows over a

period of time ?

(A) Before depreciation and taxes

(B) After depreciation and taxes

(A) Swaps

(C) After depreciation but before taxes

(B) Forward Contracts

(D) Depreciation and after taxes

(C) Future Contracts

(D) Options

39. Baumols model of cash management

attempts to

43. Which is the model of a declining firm

(A) Minimise the holding cost

when the rate of return on investment (r)

(B) Minimise the transaction cost

and cost of capital (k) are compared ?

(C) Minimise the total cost

(A) r > k

(D) Minimise the cash balance

(B) r < k
(C) r = k

40. The amount of contribution in Break-

(D) r

even- sales equals to

(A) Profit

44. The cost of preference capital is known as

(B) Profit + Fixed Cost

(A) Interest

(C) Fixed Cost

(B) Dividend

(D) Fixed Cost + Loss

(C) Premium
41. The process of buying, holding and

(D) Rebate

selling securities at a ______ cost and

______ time and that too in any amount

45. ABC analysis divides inventory on three

enables the investors to attain a balanced

categories based on

portfolio.

(A) Quantity

(A) Minimum, Minimum

(B) Volume

(B) Maximum, Maximum

(C) Value

(C) Maximum, Minimum

(D) Number

(D) Minimum, Maximum

K-1013

13

Paper III

*K1013*
46.

47.

48.

49.

Total Number of Pages : 24

Gv A a c TX W
w E
vW
vW A H P
W ?
(A)

(B)

(C)

Zq

(D)

50.

gr&C&p r D PX
X ?
(A) PW
(B)
(C) W

(D) |W

51.

BvP PW A
P W P v
Z Pw v
W Pp Bv
?
(A) Hh
(B) gQ
(C) W (wP)
(D)

52.

J TX
v W W
A vP| PR
PW G D PX
qr BRw.
(A) AP vP|
(B) vP|
(C) APP vP|
(D) Wu vP|

53.

W v wP BRW ,
W W P W A
G WX PW
H PW ?
(A) B
(B) b aa
(C) R pq

|P |W PWP
PW
(A)

wP, |P

(B)

wP, |P o

(C)

|P, W

(D)

wP, W o

w D PX WY
v J QX ?
(A)

(B)

PP W

(C)

P (orW) BW

(D)

g BW

D PXW QW AW
v wPW AP BR
W.
(A)

aPW

(B)

(C)

vPo W

(D)

Paper III

(D)
14

vj
K-1013

*K1013*

Total Number of Pages : 24

50. Just-in-time system is a method to control

46. When two or more firms dealing in same

products join together to strengthen the

(A) Receivables

business is known as

(B) Inventory

(A) Horizontal Merger

(C) Cash

(B) Vertical Merger

(D) Payables

(C) Conglomerate Merger

51. Select that theory of corporate

governance, the main focus of which is
to develop rules and incentives to
minimise the conflict of interests between
owners and managers

(D) Circular Merger

47. The broad areas of financial decisions
are
(A) Investment,

Financing

and

(A) Agency theory

Dividend

(B) Political theory

(B) Investment, Financing and Sales

(C) Stakeholder theory

(C) Financing, dividend and Cash

(D) Stewardship theory

(D) Investment, Cash and Sales

52. Which is the type of capitalisation where
the earning capacity of the firm is not
justifiable with the amount of capital ?

48. Depletion is the process of writing off the

value of
(A) Fixed Assets

(A) Over capitalisation

(B) Fictitious Assets

(B) Fair capitalisation

(C) Intangible Assets

(C) Optimum capitalisation

(D) Maximum Capitalisation

(D) Waste Assets

53. A tool that enables to summarise the

overall exposure of portfolios of options,
with various exercise prices and maturity
periods, is called

49. Select that option of instrument of

collection which need not go through
clearing
(A) Cheques

(A) Option Premium

(B) Refund Warrants

(B) Implied Volatility

(C) Documentary bills

(C) Risk Neutrality

(D) Dividend Warrants

(D) Hedge Ratio

K-1013

15

Paper III

*K1013*
54.

55.

56.

57.

Total Number of Pages : 24

Jor A & XW
vP =
(A)

(B)

(C)

(D)

M|

D PX A or

Wv P b ?
(A)

(B)

(C)

(D)

Wp o

Ppr vP| A
(A)

W T S

(B)

W T P

(C)

W T Ppr

(D)

W T Pu

P
vv Pv
D PX P
?
(A)

EP

(B)

P EP

(C)

W EP

(D)

EP

Paper III

58.

D PX
J W WX ?
(A) W v () Q
(B) W W
(C) PW PWP
(D) W AW
A g BW

59.

A p G
PRX v ?
(A) B W
(B) E g P R X P P v
|P
(C) E PW
(D) J P R B wP
PW

60.

P P ~P wW
W C W
QR X ~WW,
Agn C H P ?
(A) a
(B) (O)
(C) W
(D) a O

61.

BW PWPW
A w H P
W ?
(A) a
(B) B P
(C) PWP a
(D)

16

A ~W
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Total Number of Pages : 24

58. A significant portion of actual world trade

pattern results from

54. Total Value Assets Outsiders Liabilities =

(A) Shareholders Fund
(B) Surplus Value Fund

(A) Different factor endowments

between countries

(C) Creditors Fund

(B) Different sizes of the countries

(D) Sinking Fund

(C) The industrial

governments

of

(D) The different tastes and preferences

of people in different countries

55. Which one of the following countries has

no internationally accepted currency

59. The team tariff, as used in international

trade, refers to

symbol ?
(A) India

(A) A tax on imports

(B) Japan

(B) A government payment

encourage exports

(C) China

to

(C) The price of goods when they leave

the producing country

(D) Great Britain

(D) A limit on the quantity of a goods

that can be imported into a country

56. Market Capitalisation means

(A) No. of Outstanding Shares Face

60. When free trade areas are setup, the

member countries trade with each other
grows faster than their trade with other
countries, this is due to what economists
call

Value Per Share

(B) No. of Outstanding Shares Book
Value Per Share
(C) No. of Outstanding Shares Market

(A) Trade creation

Value Per Share

(B) Trade diversion

(D) No. of Outstanding Shares Nominal

(C) Trade channelling

Value Per Share

(D) Trade creation and trade diversion

61. A policy of developing local industries
that can compete with imports is referred
to as

57. David Ricardos theory in favour of free

trade uses the idea of
(A) Mutual Advantage

(A) Export promotion

(B) Comparative Advantage

(B) Import substitution

(C) Absolute Advantage

(C) Industrial promotion

(D) Multilateral Advantage

(D) Unbalanced growth

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17

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62.

63.

Total Number of Pages : 24

A W B wPv
PW P P
PO v A
| v ?
(A) P
(B) pW
(C) VER JW
(D) P W|or |

66.

(C)
(D)

65.

67.

P BP E
W
WTO J W
A
JvPW PO
, BP y
PW W
WTO P aPqr O
W BP P W

68.

D PXW B |P PRqr
P| ?
(A) B WX
WY
S
(B) B WX
WY
X
(C) PwW
(D)

Paper III

PWY

(B)

o SX

(D)

64. WTO Gv SPW ?

(B)

(A)

(C) U.S. v PWY

vX P WO P WW
g ?
(A) vW P
(B) vW P Hhp
(C) vW P vW P
Hhp
(D) vX Pr
(A)

o

gW
~W D PX A
| O ?

PtW
18

hW P P p r W
X B P P
Zo P|W
P W X D P X W C P R
X W.
(A)

P
W
AW
OW Q

(B)

Pu |, ac W|or, WP
r EWWX wP
A v

(C)

EW Pw i aP Pu
A E Pw P

(D)

WP QPX W~

P P W v S
?
(A)

P ac o v

(B)

P W b c
C PW P W
vXPw

(C)

P ac WP

(D)

E P P
P P b.
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62. A protectionist measure whereby

members of a regional trading bloc agree
to impose an identical rate of protection
on all goods imported from a nonmember countries
(A) Common quota arrangements
(B) Common external tariffs
(C) VER agreements
(D) Technological Standards Control

66. Which of the following might affect the cost

of the trip to Japan by a resident of Britain ?
(A) The depreciation of the Euro
(B) The time at which the British
resident purchases Yen
(C) The depreciation of the U.S. dollar
(D) The depreciation of Yen
67. A modern supply chain should enable the
organisation to successfully compete in
todays global market environment due
to a number of reasons apart from which
of the following ?

63. Who is responsible for issuing bill

of lading ?
(A) Shipping Company
(B) Shipping Company Agent
(C) Shipping Company and Shipping
Company Agent
(D) Captain of the ship

(A) Predictable but inevitable changes

in supply chain relationships
(B) The increasing demand for low
volume, high quality, customer and
specific products

64. What are the two main functions of the WTO ?

(A) The promotion of free trade and
economic liberalism
(B) The administration of the WTO
agreements and the international
trade disputes
(C) The promotion of world peace,
economic stability and financial
co-operation
(D) The administration of the WTOs
institutional framework and the
promotions
of
economic
co-operation amongst its members

(C) Products have very short life cycles

and very short development and
production lead times
(D) Customers want to be treated as
individuals
68. The main difference between direct and
indirect export is that
(A) Indirect exporting results in more
sales

65. Which of the following characterise the

early stage of a financial crisis ?
(A) Excessive euphoria about the future
price of certain assets
(B) Excessive pessimism about future
asset prices
(C) Falling house prices

(B) Companies engaged in indirect

exporting get more support from the
foreign governments
(C) Indirect exporting takes longer
(D) Direct exporting implies that the
manufacturer performs the export
task

(D) Stagnating share prices

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69.

Total Number of Pages : 24

PX PW P X ?

72.

B BW
EW
(A) J Q P

(B) P R X Q W P
AW
(C) P gW PWPWW
E W
(D) P gW PWPWW
W hW

73.

Co Q D PX
Ppr A
b ?
(A) v WW W
P
(B) P p r C
ZoWW
(C) W SW JX
vW Q|
(D) P W

D PXW v wPW
P|W ?
(A) W
Pp
r
q
(B) P a c XW P W
AP
(C) WP A Pw v
(D) X JW B

74.

W P|
(A) | Ppr
(B) Ppr ac
(C)

pW PW
JPR X
?
(A) Q J
(B) Zo
(C) P W oP
(D) E AP R J

75.

A BP S |
v ?

P A : g XW BW
Jor rPR 10,000 . WX
9,000 .W
, B
CIF 9,000 . .
P B : WO Aw
a 1,000
v P
2,000 PWX
2,000 . .
(A) P P A X
(B) P P B X
(C) Gv P X
(D) Gv PW X
70.

71.

(D)

(A) OAU

(B) OPEC

(C) UAE

(D) COMECON

____________________________

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20

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69. Which of the following statements is true ?

72. Import substitution policies make use of

Statement A : Insurer pays Rs. 9,000 for

total loss of a case of textiles during transit
insured for Rs. 10,000 but having a CIF
value of Rs. 9,000 only.

(A) Tariffs that discourage goods from

entering a country
(B) Quotas applied to goods that are
shipped abroad
(C) Production subsidies granted to
industries with comparative
advantages

Statement B : Insurer pays Rs. 2,000 in

respect of a Cargo insurance claim of
Rs. 2,000 under a marine Cargo policy
subject to a franchise of Rs. 1,000.

(D) Tax breaks granted to industries

with comparative advantages

(A) Only Statement A

73. Which of the following is not usually

considered to be a reason for undertaking
foreign direct investment ?

(B) Only Statement B

(C) Both the Statements
(D) Neither of the Statements

(A) Strong competition from abroad in

the home market

70. One of the following does not represent

a general market risk in the
internationalisation process
(A) Lack of tax incentives
organisations that export

(B) The need to ensure supplies of raw

materials and components
(C) Diversification to reduce earnings
volatility

for

(D) The need to initiate licensing

agreements

(B) Competition
from
other
organisations in foreign markets

74. General agreement on trade and tariffs

was replaced by the

(C) Complexity of shipping services to

overseas buyers

(A) Multilateral trade agreement

(B) World Trade Organisation

(D) Language and cultural differences

(C) Cross regional trade group

(D) North American
agreement

71. _______ is the fundamental reason for

exporting.
(A) Making money

free

trade

75. The most prominent cartel in international

economy

(B) Increasing market share

(C) Diversification

(A) OAU

(B) OPEC

(D) Greed

(C) UAE

(D) COMECON

____________________________

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b PRX
Space for Rough Work

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22

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b PRX
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b PRX
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24

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