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Mock - 1
1.
The salient features of India’s Foreign Trade Policy are:
i. India to be made a significant participant in wo
rld trade by 2020
ii. Merchandize exports from India (MEIS) to promote specif
ic services for specific
Markets Foreign Trade Policy
iii. Focus on labour-intensive sectors.
iv. FTP 2015-20 introduces two new schemes, namely “Merchandi
se Exports from
India Scheme (MEIS)” and “Services Exports from India Scheme
(SEIS)”
Codes:
(1) All (i), (ii), (iii) and (iv)
(2) (i), (ii) and (iii) only
(3) (i), (iii) and (iv) only
(4) (ii), (iii) and (iv) only
2.
Which of the following statements are correct regarding
World Trade organisation?
1. The World Trade Organization (WTO) is the only glo
bal international organization
dealing with the rules of trade between nations.
2. Kazakhstan is the latest member to join WTO
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(1) 1 only
(2) 2 only
(3) Both
(4) None
3.
Match the following:
List – I List – I
I
a. Functional Organisation 1. F.W. Taylor
b. Transactional Analysis 2. McClelland
c. Managerial Grid 3. Eric Berne
d. Need Theory 4. Blake and Mo
uton
Codes:
abcd
(1) 1 3 4 2
(2) 1 2 3 4
(3) 4 3 2 1
(4) 2 1 4 3
4.
Under Alderfer’s ERG theory, the three core needs are
(1) Emotional, Relational, and Growth
(2) Emotional, Rational and Growth
(3) Existence, Reliability and Gain
(4) Existence, Relatedness and Growth
5.
India has signed bilateral Free Trade Agreements (F
TAs) with several Asian
economies but which one of following Asian country Indi
a never signed a bilateral
Free Trade Agreements (FTAs) with?
(1) Sri Lanka
(2) China
(3) Afghanistan
(4) Thailand
6.
Development of organizing and intervening skills in group
processes, usually takes
place in case of
(1) Sensitivity training

(2) Survey feedback
(3) Team building
(4) Process consultation
7.
Which of the following are the generic strategies suggeste
d by Porter that might
adopt to make their organizations more competitive?
I. Divestiture.
II. Focus.
III. Cost leadership.
IV. Differentiation.
(1) Only (II) above
(2) Both (I) and (II) above
(3) Both (III) and (IV) above
(4) (II), (III) and (IV) above
8.
A situation where any advantage given by one member of
the WTO to another
member must be extended to all WTO members.
(1). The intra-regional principle
(2). The most favoured nation principle
(3). The excessive invoicing principle
(4). The comparative advantage principle
9.
Which of the following deals with “what, why, when an
d how” tasks to be performed?
(1) Job Analysis
(2) Job Description
(3) Job Specification

(4) Job Enrichment
10.
Which of the following statements is false concerning V
room’s expectancy theory?
(1) It is based on self-interest where each employee seeks to m
aximize personal
satisfaction
(2) Managers’ must understand which rewards employees will p

ositively value
(3) The employee must see the connection between perform
ance and rewards
(4) The theory is concerned with reality, not perceptions
11.
Which of the following statements is/are true about execut
ive support systems?
I. They provide market intelligence, investment int
elligence and technology
intelligence.
II. They make greater use of analytical models and are le
ss interactive.
III. They support decision-making at the top level of
management.
(1) Only (I) above
(2) Only (II) above
(3) Only (III) above
(4) Both (I) and (III) above
12.
Match the items given in Column – I with most appropriat
e options given in Column
– II:
Column – I
Column – II
a. Conditions imposed by a Government in
i. Patents
respect of foreign investment
b. Information with commercial value
ii. Intellectual Prop
erty Right
c. Monopoly right granted by law
iii. TRIMs
Codes:
abc
(1) iii i ii
(2) iii ii i
(3) ii iii i
(4) ii i iii
13.
For an MBO (Management by objectives) system to work, t

he business unit’s
objectives must meet ___ criteria.
(1) 5
(2) 2
(3) 3
(4) 4
14.
Propensity of people to consume is an example of an ____v
ariable. .
(1) Political
(2) Economic
(3) Social
(4) Demographic
15.
The belief that businesses that help in solving
difficult social problems create
a desirable community and attract and keep skilled e
mployees is known as
which argument for social responsibility ?
(1) Ethical obligation
(2) Public image
(3) Better environment
(4) Possession of resources
16.
Aggressive involvement in a chronic, incessant struggle to
achieve more in less
time, even against opposition from others is the characte
ristic of people belong-
ing to.
(1) Type A personality
(2) Locus of control
(3) Type B personality
(4) None of above.
17.
What is the nature of management interaction in the
case of a mechanistic organi-
zation?
(1) Flat
(2) Horizontal

(3) Vertical
(4) Responsive.
18.
Which of the following are most important decisions that
managers make?
(1) Functional
(2) Programmed
(3) Non – programmed
(4) Tactical
19.
Ego strength and locus of control are _____ that influen
ce an individual’s ethical
behavior.
(1) Values,
(2) Beliefs
(3) Personality variables
(4) Structural variables.
20.
Motivation is a _____________ stale.
(1) Sociological
(2) Psychological
(3) Physiological
(4) Biological
21.
Employees must be given the tools and resources they need
to be creative. One
of the most valuable resources is:
(1) Time
(2) Money
(3) Rules & guidelines
(4) Providing Challenges
22.
_____is not an operative function of human resource man
agement.
(1) Employee Relations
(2) Compensation of emp
loyees
(3) Organizing
(4) Employment
23.

The point rating method is a quantitative technique & j
ob evaluation. What are the
advantages of this method?
i. The system is accurate & dependable
ii. It is a simple technique.
iii. It is a quits & inexpensive method.
iv. Wage differentials are likely to be systematic
And in accordance with the content of each job.
(1) Only i & ii
(2) Only i & iii
(3) Only ii & iii
(4) Only i & iv
24.
Law of diminishing return is not relevant when.
(1) All labors are equally efficient.
(2) The time period is short.
(3) All factors of input are increased by the same propor
tion.
(4) Capital is held constant.
25.
Which of the following methods does a firm resort to av
oid dividend payments?
(1) Share Splitting
(2) Right issue
(3) Bonus Shares
(4) Declaring bonus Shares
26.
Tight cost control is associated with which of the follo
wing strategies?
(1) Market segmentation strategy
(2) Market dominance strategy
(3) Cost leadership strategy
(4) Differentiation Strategy
27.
______ Provides a way for individual investors to sup
port socially responsible
com panies.
(1) NASDAQ
(2) Going green
(3) A band

(4) A socially responsible mutual stock bond
28.
Which of the following comes under the broad definition f
or factors of produc-
tion?
(1) Technology
(2) Innovation
(3) Capital
(4) Patent right
29.
Which of the following aggregate planning strategies
is a “capacity option”?
(1) Influencing demand by changing price.
(2) Counter -seasonal product mixing
(3) Influencing demand by extending lead times.
(4) Changing inventory levels.
30.
Over the past 25 years, all of these areas of legal
environment have influenced
HRM except:
(1) Equal employ ment opportunity legislation
(2) Employees pay and benefits
(3) Employee competition legislation
(4) Job security
31.
Which of following has a negative impact on the share
price?
(1) Unexpected dividend increase
(2) Unexpected dividend initiation
(3) Unexpected dividend decrease
(4) None of the above
32.
A _________________ consists of people, equipment, and
procedures to gather,
sort, analyze, evaluate, and distribute needed, timely
, and accurate information to
marketing decision makers.
(1) Management information system
(2) Marketing information system

(3) Financial information system
(4) Management intelligence plan
33.
The ___________ process is the process of evaluating e
ach market segment's
attractiveness and selecting one or more segments to ente
r.
(1) Market Positioning
(2) Market Targeting
(3) Market Differentiation
(4) Market Segmentation
34.
Which of the following is not a characteristic of a mon
ey market instrument?
(1) Liquidity
(2) Marketability
(3) Long maturity
(4) Liquidity premium
35.
Which tool of the promotional mix is defined as any pai
d form of non-personal
presentation and promotion of ideas, goods, or services by
an identified sponsor?
(1) Advertising
(2) Public relations
(3) Direct marketing
(4) Sales promotion
36.
_________________ is direct communications with careful
ly targeted individual
consumers to obtain an immediate response.
(1) Personal selling
(2) Public relations
(3) Direct marketing
(4) Sales promotion
37.
Two major factors are changing the face of today's c
ommunications. One of
these factors is the fact that:
(1) Costs of promotion are rising.

(2) Mass markets are fragmented and marketers are shifting aw
ay from mass
marketing.
(3) Global communications are not growing rapidly enough
(4) Managers have achieved more power and control.

38.
Which type of marketing system is used when a company is inv
olved in more than
one type of distribution arrangement?
(1) Independent vertical marketing system
(2) Partially integrated vertical marketing system
(3) Fully integrated vertical marketing system
(4) Dual vertical marketing system
39.
Which statement about product/trademark franchising is correct
?
(1) Franchised dealers sometimes agree to operate under supp
liers' names.
(2) Dealers operate under the strict control of suppliers.
(3) Suppliers determine store hours and location.
(4) Examples are restaurants and real estate establishments.
40.
By security in e-commerce we mean
(i) Protecting an organization's data resource from unauthor
ized access
(ii) Preventing disasters from happening
19
(iii) Authenticating messages received by an organization
(iv) Protecting messages sent on the internet from being read
and understood by
unauthorized persons/organizations
(1) i, ii
(2) ii, iii
(3) iii, iv
(4) i, iii, iv
41.
Which of the following is not an element of a service
firm's communication mix?
(1) Personal selling

(2) Sales promotion
(3) Positioning strategy
(4) Publicity and public relation
s
42.
Which of the following best describes the concept of th
e value chain?
(1) Adding financial value to an organization through th
e acquisition of other firms
(2) The step-wise increases in product prices as raw materi
als are turned into
goods/services
(3) The steps in manufacturing that add value to finis
hed products
(4) All steps in the transformation process that add va
lue even if they don't come
from manufacturing
43.
The parts of a network that represent the origins are
(1) The axes
(2) The flow
(3) The nodes
(4) The arrows
44.
Put into chronological order on the basis of developm
ent:
1. Law of demand
2: Law of indifference
3. Law of diminishing marginal utility
4. Revealed preference curve
5. Indifference curve
Codes:
(1) 1, 2, 3, 4, 5
(2) 1, 5, 3, 4, 2
(3) 1, 3, 2, 5, 4
(4) 1, 3, 4, 2, 5
45.
Match the following:
List-I
List-II

a. Principle of Economics
1. Gunner Myrdal
b.Diamond Water. Paradox
2. J. K Galbraith
c. Value and Capital
3. Alfred Marshall
d. Asian Drama
4. J. R Hicks
e. Language of Economics
5. Adam Smith
Codes:
abcde
(1) 1 2 3 5 4
(2) 2 4 3 5 1
(3) 5 2 3 1 4
(4) 3 5 4 1 2
46.
Assertion (A):
According to Taylor, one best way of doing each task
leads to
increase in productivity in organization.
Reason (R) :
It was the management responsibility alone to find out
this one best
way.
Codes:
(1) A and R are true and R is the correct explanation of
A.
(2) A and R are true but R is not the correct explanatio
n of A.
(3) A is true but R is false.
(4) A is false but R is true
47.
The Scientific Management is based upon which of the follo
wing assumptions?
1. Application of the scientific methods to organization
al problems leads to effi-
ciency.
2. The good worker is one who accepts orders, but does n
ot initiate actions.

3. Worker is more important than the work.
4. Each worker is interested in maximizing his monetary rewa
rds.
Select the correct code:
(1) 1, 2 and 3
(2) 1, 2 and 4
(3) 2, 3 and 4
(4) 1, 2, 3 and 4
48.
Which of the following is an example of random sampling
techniques?
(1) Taking the name of every person in a telephone book
(2) Generating a list of numbers by picking numbers out of
a hat and matching
these numbers to names in the telephone book
(3) Taking every tenth or twentieth name from a list of e
verybody in the telephone
book
(4) None of these
49.
What does the following definition refer to?
'Achieving marketing objectives through the use of any e
lectronic communications
technology'
(1) Internet marketing
(2) E-commerce
(3) E-marketing
(4) E-business
50.
Which of the following statements concerning the operat
ions management deci-
sion is relevant to services?
(1) There are many objective quality standards.
(2) The customer is not involved in most of the process.
(3) The work force's technical skills are very important.
(4) Labor standards vary depending on customer requirement
s.
51.
A strategy is a(n)
(1) Plan for cost reduction

(2) Broad statement of purpose
(3) Simulation used to test various product line options
(4) Action plan to achieve the mission
52.
Which of the international operations strategies uses
import/export or licensing of
existing products?
(1) International strategy
(2) Global strategy
(3) Transnational strategy
(4) Multidomestic strategy
53.
Mergers and acquisitions in unrelated industries are ca
lled:
(1) Horizontal mergers
(2) Vertical mergers
(3) Conglomerate mergers
(4) Privatization
54.
At corporate level, diversification comes about when a
firm is involved in two or
more:
(1) Businesses
(2) Markets
(3) Segments
(4) Industries
55.
One of the quickest and cheapest ways to develop a glo
bal strategy is through
_____________.
(1) Exporting
(2) Wholly owned subsidiaries
(3) Strategic alliances
(4) Importing
56.
Entrepreneurship is a constant process that relies on:
(1) Creativity, innovation, and profit.
(2) The ability to w in over the consumer.
(3) Creativity, innovation, and application in the ma
rketplace.
(4) Intellectual property rights.
57.
The philosophy of zero defects is
(1) Unrealistic
(2) Prohibitively costly
(3) An ultimate goal; in practice, 1 to 2% defects is ac
ceptable
(4) Consistent with the commitment to continuous improvement
58.
Pareto charts are used to
(1) Identify inspection points in a process
(2) Organize errors, problems or defects
(3) Outline production schedules
(4) Show an assembly sequence
59.
Which of the following is the risk associated with the
retail banking?
(1) Strong recovery strategy
(2) Definite lending limits
(3) Effective credit process and proposals
(4) Inadequate risk pricing
60.
In which of the following phases, entrepreneurs being
sharing the ideas with a few
close friends in the organization?
(1) The solo phase.
(2) The network phase.
(3) The Bootleg phase.
(4) The formal team building phase.
61.
Which of the follow ing factor (s) does not help in crea
ting an entrepreneurial envi-
ronment in the organization?
(1) Self - selection.
(2) Group appraisal.
(3) No Handoffs.
(4) The Doer decides.
62.
All managers play the role of hiring, training, motivati

ng and disciplining employ-
ees. This role may be termed as:
(1) Figurehead role
(2) Leadership role
(3) Liaison role
(4) None of the above
63.
The capacity of human beings to change would be virtu
ally unrestricted in which of
the following situations?
(1) If internal factors alone determine human behavior.
(2) If external factors alone determine behavior.
(3) If both internal and external factors determine beh
avior.
(4) If neither internal non external factors determine b
ehavior.
64.
Which of the following is not a benefit accruing to an
organization because of its
grievance redressal procedure?
(1) It helps to maintain harmonious industrial relations.
(2) Previous knowledge and experience, captured in the gri
evance redressal sys-
tem helps the management when formulating major plans l
ike plant expansion on
installation of the latest technologies.
(3) It keeps a check on supervisors indulging in biased d
ecisions.
(4) Grievance redressal procedures insulate the top manageme
nt from the prob-
lems of the employees.
65.
Benefits of international trade are limited to
(1) Tangible goods.
(2) Intangible goods.
(3) All goods but not services.
(4) None of the above.
66.
The theory of purchasing power parity says that .
(1) The inflation rates in two countries are unrelated

(2) The exchange rate reflects the inflation rate dif
ference between two countries
in the opposite direction
(3) The inflation rate is greater than the interest rate
(4) The interest rate is greater than the inflation rate
67.
Which of the international operations strategies invo
lves low cost reductions and
low local responsiveness?
(1) International strategy
(2) Global strategy
(3) Transnational strategy
(4) Multidomestic strategy
68.
Which of the following is not a characteristic of a per
son with high need for achieve-
ment?
(1) Does not like to shoulder responsibility.
(2) Likes to take risks.
(3) Tends to be innovative.
(4) Shows tolerance to ambiguity.
69.
Which of the following is not a part of the process of
organizational development?
(1) Data gathering.
(2) Organizational diagnosis.
(3) Action interventions.
(4) Feedback.
70.
Which of the follow ing is not a difference between
Intrapreneurship and entrepre-
neurship?
(1) Intrapreneurship is often restorative whereas indiv
idual entrepreneurship is
development.
(2) In individual entrepreneurship, the "enemy" is the
make but in the case of
intrapreneurship, the corporate culture may be the pri
mary foe.

(3) Intrapreneur does not have the ownership of the new
venture created nor is
completely independent whereas an individual entrepre
neur is completely inde-
pendent and has complete ownership.
(4) The intrapreneur has no access to company's fund while i
ndividual entrepre-
neur, on the other hand has to use his personal wealt
h or scramble to obtain
funding.
71.
A computer based information system w hich increases th
e efficiency and produc-
tivity of managers and office through document and mes
sage processing is know
n as a/an _____.
(1) Decision support system (DSS).
(2) MIS
(3) Office automation system
(4) Transaction processing syst
em.
72.
The manufacturer of a wide range of consumer goods, fol
low a policy that allows
employees to approach managers at any time and discuss thei
r problems with
them. What type of policy is the company following?
(1) Open door policy
(2) Exit interviews
(3) Attitude questionnaire
(4) Participative decision - ma
king technique.
73.
If a person fails to get promoted due to his poor ratin
g in the annual performance
appraised, but attributes this to poor managerial assessment
of his capabilities,
he is considered to have focus of control.
(1) Internal
(2) External

(3) Agreeable
(4) Conscientious
74.
_________ refers to all the extrinsic rewards received
by the employee of an
organization during and after the course of the job, for
his/her contributions to the
organization.
(1) Bonus
(2) Compensation
(3) Fringe Benefits
(4) Incentives
75.
In the _____method of conflict resolution, both the pa
rties emerge as "Winners".
(1) Compromise
(2) Problem solving
(3) Mediation
(4) Accommodation
76.
Dumping is an example of:
(1) Monopolistic practice in international trade.
(2) Monopoly practice in international trade.
(3) Oligopoly practice in international trade.
(4) Perfect competition in international trade.
77.
When the required rate of return on a bond is greater t
han the coupon rate.
(1) The premium on the bond declines as maturity approach
es.
(2) The discount on the bond declines as matur ity appr
oaches.
(3) The value of the bond is greater than its per value
.
(D The greater is its price change in response to a give
n change in the required
rate of return.
78.
Which of the following statements regarding IRR is tru
e?

(1) A project can have only one IRR.
(2) If IRR is that the firm's cost of capital, the project
should be rejected.
(3) A project can have multiple IRRs depending on the c
ash flow streams.
(4) Both (2) & ( C) above.
79.
A simple correlation can be defined as the tendency of __
_____ .
(1) Independent variation
(2) Dependent variation
(3) Simultaneous variation
(4) Instantaneous variation.
80.
A / an is a computer based information system that suppor
ts the process of mana-
gerial decision making in situations that are not well
structured.
(1) MIS
(2) Decision – Support system
(3) Expert system
(4) Transaction support system
81.
Globalization of industries is occurring for all of these
reasons except.
(1) World wide trend towards similar consumption pattern.
(2) A emergence of global buyers & sellers.
(3) A world wide trend towards different consumption patt
erns.
(4) E - commerce and the instant transmission of money and in
formation across
continents.
82.
Entrepreneurship is a constant process that relies on:-
(i) Creativity, innovation and profit.
(ii) Intellectual property rights.
(iii) Creativity, innovation, and application in the marke
t place.
(iv) The ability to wise over the customers.
(1) Only (i)

(2) Only (ii)
(3) Only (iii) only (iv)
(4) None of above
83.
The ability to apply creative solutions to problems and
opportunities to enhance or
to enrich people’s lives is called.
(1) Entrepreneurship
(2) Innovation
(3) Creativity
(4) Creative thinking
84.
A way that organization can show their commitment to bein
g green is through adopt-
ing the ______
(1) ISO 9000 standards
(2) ISO 14001 Standards
(3) ISO 14000 standards
(4) ISO 26000 Standards
85.
Which of the following refers to a special telephone li
ne that enables employees
to bypass the proper channels for reporting their ethical d
ilemmas and problems?
(1) Ethics training
(2) Ethics Audit
(3) Ethics Hotline
(4) Ethics development
86.
Which of the following approaches is neither immoral nor
moral and simply ig-
nores ethical considerations?
(1) Moral management
(2) Amoral management
(3) Immoral Management
(4) Both (1) & (3)
87.
Which of the following is an argument against the inv
olvement of businesses in

social welfare activities?
(1) Balance of responsibility and power.
(2) Excessive costs.
(3) Favorable public image
(4) Protecting shareholders interests.
88.
In w hat way are Distribution Resource Planning (DRP) and
Material Require-
ments Planning (MRP) similar?
(1) Both employ similar logic and procedure.
(2) Both are employed in a manufacturing organization.
(3) Both w ork most efficiently with largest lot sizes.
(4) Both are employed by retail organization.
89.
Managers have to play several roles while performing th
eir duties. One of these
roles, called the interpersonal relationships involved.
The interpersonal roles of a
manager includes ________
(i) Liaison role
(ii) Leadership role
(iii) Figurehead role
(iv) Information role
(1) Only i, ii and iii
(2) Only i and ii
(3) Only i and iv
(4) Only ii and iii
90.
Interest free loans provided by companies to their emp
loyees, are an example of
______.
(1) Benefits
(2) Incentives
(3) Bonus
(4) Performance based rew ards.
91.
When a company enters a new product category for whic
h its current brand names
are not appropriate, it will likely follow which of th
e following brand strategies?

(1) Product extensions
(2) Line extensions
(3) Brand extensions
(4) New Brands
92.
The type of sales presentation approach that requires
good listening and problem
solving skills is the:
(1) Canned approach
(2) Formula approach
(3) Need - satisfaction approach
(4) Critical - thinking approach.
93.
The five forces that affect the level of competitio
n in an industry are:
(1) Threat of entrants; power of buyers; po
wer of suppliers; threat of substitutes;
competitive rivalry.
(2) Threat of buyers; power of entry; power of substitu
tes; threat of suppliers;
threat of recession.
(3) Threat of recession; power of buyers; power of suppli
ers; threat of manage-
ment failure; competitive rivalry.
(4) Threat of entry; power of buyers; power of suppliers;
threat of substitutes;
government action.
94.
Companies go international for a number of different r
easons. Which of the follow
ing is not a defensive reason for going international
?
(1) To protect domestic market.
(2) To explore new market.
(3) To acquire new technology
(4) To diversity geographically.
95.
The market value of the firm is result of
(1) Dividend decision

(2) Working capital decision.
(3) Capital budgeting decisions
(4) Trade of between risk and return.
96.
The starting point for preparing the master budget is
the.
(1) Inventory policy
(2) Sales Budget
(3) Production budget
(4) Budgeted balance sheet
97.
Which of the follow ing statement is/are true?
(1) For non - simple mixed investment all the appraisal cri
teria can be applied.
(2) N P V is not suitable for the non - simple mixed invest
ment.
(3) BCR and NBCR criteria are not suitable to evaluate no
n - simple mixed invest-
ment.
(4) IRR is not suitable for simple investment.
98.
Acc. to net operating Income Approach.
(1) The overall capitalization rate of the firm decrease
s as the degree of leverage
increases.
(2) The cost of debts increases with increase in degree of
leverage.
(3) The overall capitalization rate increases as the deg
ree to leverage increase.
(4) The market is assumed to capitalize the firm at a discoun
t rate that is indepen-
dent of the firm’s degree of leverage.
99.
A company issues one right share for every 4 shares held at
a subscription price of
Rs. 60 per share. The current market price of the share is
Rs. 80. Value of share is
(1) Rs. 4
(2) Rs. 5

(3) Rs. 15
(4) Rs. 26
100.
Which of the following appraisal technique helps in ach
ieving the objective of
shareholders wealth maximization?
(1) IRR
(2) Accounting Rate of Return
(3) NPV
(4) Both (1) and (2) above
Answers ---
MOCK -2
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
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
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 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 behaviour 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
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.
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.
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.
(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.
6. 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
7. Assertion (A) : The physiological needs are essential for living but they are
determined by social environment.

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 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).
(3) Assertion (A) is correct, whereas Reasoning (R) is incorrect.
(4) Reasoning (R) is correct, whereas Assertion (A) is incorrect.
8. The basic emphasis of _________ theory of organisational design is on flat
structure,
decentralization and provision of informal organisation.
(1) Neo-classical theory (2) Modern theory of systems approach
(3) Matrix organisation theory (4) Classical theory
9. 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
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.
11. Most job descriptions contain sections that cover –
(1) Responsibilities and duties (2) Job summary
(3) Working conditions (4) All of the above
12. Match the items of List – I with the items of List – II. The items relate to
evaluation and
follow-up of training process.
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.
d. Behaviour iv. Determine the level of improvement 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
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 : 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.
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
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
instalment will be _______.
(1) ` 3,633 (2) ` 3,951
(3) ` 3,333 (4) ` 4,233
a. M.M. Hypothesis
without taxes
i. The cost of debt and cost of equity are assumed to
be independent to the capital structure.
b. Net operating income
approach
ii. In the absence of taxes a firm’s market value and
the cost of capital remain invariant to the capital
structure changes.
c. M.M. Hypothesis under
corporate taxes
iii. The cost of equity is assumed to increase linearly
with leverage.
d. Net income approach iv. The value of the firm will increase with debt
the deductibility of interest charges for tax due

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
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 ?
(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.
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
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” ?
(1) Empathy (2) Responsiveness
(3) Reliability (4) Assurance
a. Rich-media
ads
i. Online ads that appear between screen changes on a
website, especially while a new screen is loading.
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.

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.
27. Match the items of List – I with 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
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.
(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.
Statement – II : Monte Carlo is an approach for simulating the probability
distribution
by associating and then selecting random numbers.

(4) Statement – I is incorrect while Statement – II is correct.
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
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 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
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.
32. Match the items of List – I with the items of List – II and indicate the code
of correct
matching in connection with probability distributions :
List – I
(Mean and standard
deviations)
List – II
(Probability distributions)
a. np, npq i. Normal distribution
b. λ, λ ii. Binomial distribution
c. 0, 1 iii.Poisson distribution
Codes :
abc
(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 ?
(1) Chi-square test (2) F-test
(3) z-test (4) t-test
34. 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 :
a.
γxy
σy
σx
i. Covariance between X and Y
b. Σ(X – –
X) (Y – –
Y)
n ⋅ σx ⋅ σy
ii. Standard error of coefficient of
correlation
c. Σ(X – –
X) (Y – –
Y)
n
iii. Regression coefficient of Y on
X variable.
d. 1 – γ2
n
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
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 :
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 ?
(1) Functional area support strategy (2) Expansion strategy
(3) Diversification strategy (4) Downsizing strategy
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
38. Assertion (A) : In an industrial structure, the acquisition of an existing firm
in the
industry might be a better 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 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.
39. 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 in
few cases, industry becomes inherently unattractive.
(b) Whenever new firms are allowed to enter a particular 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 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.
40. 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
d. Objectives 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
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.
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 :
abc
(1) iii i ii
(2) iii ii i
(3) i iii ii
(4) i ii iii
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
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
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
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 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.
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
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
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
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---
Q1) 2, Q2) 3, Q3) 1, Q4) 1, Q5) 4,

Q6) 3, Q7) 2, Q8) 1, Q9) 4, Q10) 1,
Q11) 4, Q12) 2, Q13) 4, Q14) 1, Q15) 1,
Q16) 4, Q17) 2, Q18) 1, Q19) 3, Q20) 2,
Q21) 2, Q22) 1, Q23) 1, Q24) 4, Q25) 3,
Q26) 2, Q27) 2, Q28) 4, Q29) 1, Q30) 3,
Q31) 3, Q32) 9, Q33) 2, Q34) 4, Q35) 1,
Q36) 2, Q37) 2, Q38) 2, Q39) 2, Q40) 1,
Q41) 4, Q42) 1, Q43) 3, Q44) 2, Q45) 3,
Q46) 2, Q47) 3, Q48) 2, Q49) 2, Q50) 1
PART-2 MOCK 2
47 to 100
47. Organizational Behaviour is a study of investigating the impact of:

a)Employees' behaviour in an organization b)Societal behaviour on an
organization c)Country's culture on an organization d)Country's economy on
an organization
48 ) Which of the following term is used to identify, "what the job holder
does"? "how it is done"? & "why it is done"? a) Job specification b) Job
evaluation c) Job description d) Job title
49) Which of the following term is used to identify the physical & mental skills,
required to perform by an individual within a particular position in an
organization? a) Job title b) Job specification c) Job description d) Job
evaluation
50)Jobs are compensated on the basis of: a) Job analysis b) Job specification
c) Job worth d) Job description
51.)______is the main source of innovations. a) Upgraded technology b)

Human mind c) Competitors' pressure
d) Research & Development

52.) Which of the following HR function is the basic element of recruitment? a)
Attract the job applicants for the particular post b) Select the best one among
all applicants c) Train the people as per organizational requirements d) Fire
the non-performing employees
53.) “A person is known by the company he/she keeps”; is well described by

which of the term? a) Prejudice b) Stereotype c) Introversion d) Extroversion
54.) Terms "Interpersonal skills" and "Human skills" are used for: a) Two
different skills b) Different managerial skills c) Operational skills d) Same
managerial skills 55.) Which of the following abilities are categorized as the
Technical skill of an individual? a) Judgment & creativity b) Analysis &
communication c) Knowledge & proficiency d) Innovation & advancement
Achievers Study Points

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56. Managers can motivate people to avoid performing dysfunctional

behaviors by using: I. Extinction II. Punishment III. Negative reinforcement a)
I, II, III b) I and III c) II and III d) I and II
57. Which of the following correctly describes a dealer market ? i) Dealers

match buyers with sellers ii) Dealers buy and sell for themselves at their own
risk iii) Dealers trading occur over the counter iv) Dealers transaction occur on
a trading floor (A) i and iv only (B) i and iii only (C) ii and iii only (D) i, ii and iii
only
58. Which of the following assumptions is/ are unique of Capital Asset Pricing
Model (CAPM) as compared to Arbitrage Pricing Theory (APT) ? i) A single
period time horizon ii) Absence of taxes iii) Investors are risk averse iv)
Perfect capital market and absence of transaction cost (A) i, ii and iii only
(B) i and ii only (C) ii and iii only (D) i, ii and iv only

59. Match the following : List-1 List-2 a) Covered 1) Long put + call sale
Short call b) Covered 2) Long call + put sale Short put c) Synthetic 3)
Short call + long futures Long futures d) Synthetic 4) Short put + short
futures Short futures Code : ab c d (A) 1 2 3 4 (B) 3 4 2 1 (C) 1 3 2 4 (D) 3 2
41
60. Match the following : List-1 List-2 a) Mutual fund 1) Stock Exchange b)
Public issue 2) Assets of capital Management Company c) Forward trading
3) Merchant banking d) Option pricing 4) Forex market Codes : A b c d (A)
2 3 1 4 (B) 2 3 4 1 (C) 3 2 4 1 (D) 3 2 1 4

61. The term tariff, as used in international trade refers to (A) A Government
payment to encourage exports (B) A tax on imports (C) The price of goods
when they leave the producing country (D) A limit on the quantity of a good
that can be imported into a country
62. Which organization of the World Bank group deals with matters related to
the development of the poorest countries in the world ? (A) The International
Bank for Reconstruction and Development (B) The International Development
Association (C) The International Finance Corporation (D) The Multilateral
Investment Agency
63. Morale is best defined by (A) Job satisfaction (B) Lack of conflicts (C) We
feeling (D) Harmony with colleagues 64. Which of the following is permanent
in nature ? (A) Motivation (B) Attitude (C) Interest (D) Aptitude
65. People who are high on achievement motivation are (A) Highly intelligent
(B) Day dreamers (C) Visionaries (D) Realistic

66. Psychoanalysis approach to understanding human behaviour is based on
(A) Dream analysis (B) State consciousness (C) Heredity (D) Socio-cultural
factors
67. The nature of authority of a production supervisor is (A) Line (B) Staff (C)
Both line and staff (D) None of the above
68. Career plateau means (A) Employees are happy (B) Employees are
unhappy (C) Employees are unable to move up (D) Employees have become
redundant
69. Job design is concerned with (A) Clustering of tasks (B) Determination of
authority of responsibility (C) Assignment of worker to a job (D) Determining
the wages for a job
10

70. Conflicts in organizations can be eliminated forever by (A) Suppression

(B) Peaceful resolution (C) Providing higher wages (D) None of the above
71. No tax adjustment is necessary for the computation of the costs of (A)
Debt (B) Equity only (C) Preferred stock only (D) Both preferred and equity
capital
72. Which one of the following is an example of mass marketing ? (A) Rolex
(B) Ferravi (C) Coca-Cola (D) Loui-Vutlon
73. The cause and effect diagram is also called (A) Pareto chart (B) Fish bone
chart (C) X chart (D) Concentration diagram
74. Poisson distribution is used to calculate the probability of a (A) A normal

distribution (B) A binomial distribution (C) A rare event (D) None of the above

75. An economist estimated that the cost function of a single product firm is
c( θ ) = 50 + 25 θ + 30 θ + 5 θ Based on this information, the average total

cost of producing 12 units at output is (A) 1001 (B) 1000 (C) 1097 (D) 1096
76. Industry concentration or nature of market structure is determined by

using the following (A) Asset size (B) Sales volume (C) Herfindahl index (D)
Profitability
77. Nash equilibrium represents a condition where (A) All players in the game
are winners (B) All players in the game are loosers (C) No player can improve
his pay-off unilaterally (D) One player can improve his pay-off unilaterally 78.
Group dynamics is concerned with the study of (A) Conflicts (B) Individual
behaviour (C) How individual behaves in a group (D) How groups behave
23
11

79. Assertion (A) : Jensen index is actually the difference between the
expected rate of return on the portfolio and what is expected return of the
portfolio if it were positioned on the security market line. Reasoning (R) : A
positive Jensen index indicates good performance and a position above the
security market line. (A) Both (A) and (R) are individually true and (R) is the
correct explanation of (A) (B) Both (A) and (R) are individually true but (R) is
not the correct explanation of (A) (C) (A) is true but (R) is false (D) (A) is false
but (R) is true
80. In a world with Corporate taxes but no possibility of financial distress, the
value of the firm is maximized when (A) Firm uses no debt in capital structure
(B) Firm uses no equity in its capital structure (C) Firm uses a debt equity rate
of 1.0 (D) Corporate tax rate approaches 100%

81. In calculating the proportional amount of equity financing employed by a
firm, we should use (A) The common stock equity account on the firms
balance sheet (B) The sum of common stock and preferred stock of the
balance sheet (C) The book value of the firm (D) The current market price per
share of common stock times the number of shares outstanding
82. Which of the following illustrates the use of a hedging approach to

financing assets ? (A) Temporary current assets financed with long term
liabilities (B) Permanent working capital financed with long term liabilities (C)
Short term assets financed with equity (D) All assets financed with a mixture
of 50% equity and 50% long term debt
83. Which of the following would be consistent with an aggressive approach to

financing working capital ? (A) Financing short term needs with short term
funds (B) Financing permanent inventory build up with long term debt (C)
Financing seasonal need with short term funds (D) Financing some long-term
needs with short-term funds
84. Assertion (A) : ROI is the index to study management efficiency.

Reasoning (R) : Earning power in relation to total investment is measured by
ROI. (A) Both (A) and (R) are individually true and (R) is the correct
explanation of (A) (B) Both (A) and (R) are individually true but (R) is not the
correct explanation of (A) (C) (A) is true but (R) is false (D) (A) is false but (R)
is true
12

85. Assertion (A) : High capital gearing leads to greater speculation.

Reasoning (R) : Proportion of equity share capital in return to sum of the other
security of small capitalization being highly geared. (A) Both (A) and (R) are
individually true and (R) is the correct explanation of (A) (B) Both (A) and (R)

are individually true but (R) is not the correct explanation of (A) (C) (A) is true
but (R) is false (D) (A) is false but (R) is true
86. In the long run, profit maximizing firm will choose to exit a market when (A)
Fixed cost exceed sunk costs (B) Average fixed cost is rising (C) Revenue
from production is less than total costs (D) Marginal cost exceeds marginal
revenue at the current level of production
87. Demand is a function of i. Income ii. Price iii. Advertising iv. Consumers
Codes : (A) i and ii (B) ii and iii (C) iii and iv (D) ii and iv
88. Assertion (A) : Giffen goods are goods for which demand increases as
price of related goods increases.
Reasoning (R): Goods for which demand increases as income increases. (A)
(A) and (R) are correct (B) (A) and (R) are not correct (C) Only (A) is correct
(D) Only (R) is correct
89. Arrange the following steps involved incapital budgeting prices in the order
in which they appear. i. Calculating Net Present Value (NPV) ii. Projecting
Cash Flows iii. Comparison of NPV and IRR iv. Calculating Internal Rate of
Return (IRR) Codes : (A) iii i iv ii (B) ii i iv iii (C) i ii iii iv (D) ii iii iv i
90. Match the following : List – I List – II a. Veblen 1. Macro-Economics

goods b. Total cost 2. Isoquants c. Fixed cost 3. Snob appeal d. G. D. P.
4. Production function Codes : A b c d (A) 4 2 1 3 (B) 3 4 2 1 (C) 3 2 1 4 (D)
2314
13

91. The most significant management skills are (A) Technical, Human and
Conceptual (B) Technical, Behavioral and Conceptual (C) Human, Conceptual
and Systematic (D) Technical, Human and Cognitive

92. Perception involves I. Selecting information II. Interpreting information III.
Organizing information IV. Disseminating information Option : (A) I III II (B) I IV
III (C) I II IV (D) II III IV
93. Assertion (A) : Employee satisfaction leads to high performance.

Reasoning (R) : Financial incentives lead to high employee satisfaction. (A)
Both (A) and (R) are true (B) Both (A) and (R) are false (C) (A) is true and (R)
is false (D) (R) is true and (A) is false
94. Identify the sequence through which ‘Active Listeners’ constantly cycle
through i. Interpreting ii. Sensing iii. Responding iv. Evaluating Codes : (A) ii iii
iv i
(B) ii iv i iii (C) i ii iii iv (D) iv ii iii i
95. Match the following : List – I List – II a. Joseph Luft and 1. Hawthorne
Harry Ingram experiment b. A. H. Maslow 2. Transactional analysis c.
Eric Berne 3. Johari Window d. Elton Mayo 4. Need Hierarchy theory
Codes : A b c d (A) 1 2 3 4 (B) 2 3 4 1 (C) 3 4 2 1 (D) 4 1 3 2
96. Select the Human Resource Managers function from the following (A)
Administrative function (B) Auditing function (C) Operative function (D) Public
relations function
97. Responsibilities of a HR Manager are : I. Identifying right person for right

job II. Orienting, Training and Compensating him III. Impressing the employee
job performance Codes : (A) I only (B) II only
14

(C) All of the above (D) I and III only.

98. Assertion (A) : Companies are increasingly becoming competitive.
Reasoning (R) :Globalization, technological advances and deregulation are
forcing them to become competitive. (A) (A) is true and (R) is false (B) (A) and
(R) are true (C) (A) is false and (R) is true (D) (A) and (R) are false
99. The basic objective of Financial Management is (A) Maximization of profits

(B) Ensuring financial discipline in the organization (C) Maximization of assets
value and sales (D) Maximization of share holders Wealth
100. Which of the following are leverage ratio’s ? i. Liquidity ratio ii. Debt
equity ratio iii. Return on capital employed ratio iv. Interest coverage ratio
Codes : (A) i, ii are true (B) i, iii are true (C) ii, iii are true (D) ii, iv are true
ANSWER 47 TO 100 (PART 2)
61 B 81 D
62 B 82 B 63 C 83 D
64 D 84 A
65 D 85 D
66 B 86 D
47 A 67 A 87 A
48 C 68 C 88 C
49 C 69 A 89 B
50 A 70 D 90 B
51 B 71 C 91 A
52 A 72 C 92 A

53 C 73 B 93 C
54 D 74 C 94 B
55 C 75 D 95 C
56 D 76 D 96 C
57 C 77 C 97 C
58 B 78 D 98 B
59 B 79 A 99 D
60 B 80 B 100 D
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ONLINE BATCH FOR MANAGEMENT,

COMMERCE AND PAPER-1 FOR JUNE/JULY

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(3) Job Specification

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(4) Managers have achieved more power and control.

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1. The following is the demand function :

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19. Explicit Resale Price Valuation method pre-supposes that an investor

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41. Statement – I : VED analysis is meant for project maximization.

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Q1) 2, Q2) 3, Q3) 1, Q4) 1, Q5) 4,

Q11) 4, Q12) 2, Q13) 4, Q14) 1, Q15) 1,

Q16) 4, Q17) 2, Q18) 1, Q19) 3, Q20) 2,

Q21) 2, Q22) 1, Q23) 1, Q24) 4, Q25) 3,

Q26) 2, Q27) 2, Q28) 4, Q29) 1, Q30) 3,

Q31) 3, Q32) 9, Q33) 2, Q34) 4, Q35) 1,

Q36) 2, Q37) 2, Q38) 2, Q39) 2, Q40) 1,

Q41) 4, Q42) 1, Q43) 3, Q44) 2, Q45) 3,

Q46) 2, Q47) 3, Q48) 2, Q49) 2, Q50) 1

47. Organizational Behaviour is a study of investigating the impact of:

51.)______is the main source of innovations. a) Upgraded technology b)

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53.) “A person is known by the company he/she keeps”; is well described by

Achievers Study Points

56. Managers can motivate people to avoid performing dysfunctional

57. Which of the following correctly describes a dealer market ? i) Dealers

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Achievers Study Points

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Achievers Study Points

70. Conflicts in organizations can be eliminated forever by (A) Suppression