- EBIT-EPS analysis is done to determine
(a) Leverage
(b) Liquidity
(c) Profitability
(d) Financial stability - Increase in financial leverage
(a) Decrease probability of technical insolvency
(b) Increase probability of technical insolvency
(c) Increase liquidity
(d) No impact on solvency - Degree of combined leverage may be obtained as
(a) DOL/DFL
(b) DOL/DFL
(c) DOL/DFL
(d) DOL/DFL - The concept of optimum firm is propounded by
(a) EAG Robinson
(b) Sargenet Florance
(c) Pigou
(d) Alfred Marshal - A congregation or body of persons assembled at a particular time and place for economic purpose is known as
(a) Firm
(b) Plant
(c) Industry
(d) Church - Lamp unit of HMT Ltd, Lamps division of Philips, Lamps plant of Bengal lamps together can be called as
(a) Electrical Industry
(b) Multiplant unit
(c) A firm
(d) Multi plant public sector unit - When the marginal cost curve intersects with marginal revenue curve form down side, the firm is said to be in:
(a) Equilibrium position
(b) Optimum position
(c) Representative position
(d) Break even position - The concept of “ Representative firm” is propounded by
(a) Alfred Weber
(b) EAG Robinson
(c) Alfred Marshal
(d) Sargeant Florance - Concept of joint sector was introduced by the
(a) S.C. Dutt committee
(b) Ranga Rajan Committee
(c) Narsinham Committee
(d) Gadgil committee - The extent of fall in sales after which the firm starts suffering any loss is indicated as
(a) Profit margin
(b) Margin of safety
(c) P/V margin
(d) Sales margin - Other things beings equal, the impact of a reduction in variable expenses would be
(a) Reduction in B – E sales
(b) Increase in B-E sales
(c) Reduction in fixed expenses
(d) Reduction in sales - Contribution /EBIT is a measure of
(a) Cost volume profit relationship
(b) Margin of safety
(c) BEP
(d) Degree of operating leverage - The rate of return foregone on an alternate investment proposal is referred to as the
(a) Implict cost of capital
(b) Explicit cost of capital
(c) Over all cost of capital
(d) Risk cost of capital - The cost of each source of capital is
(a) Specific cost
(b) Average cost
(c) Weighted cost
(d) Market cost - The impact of tax deductibility of debt cost is
(a) Cost of equity is reduced
(b) Cost of debt is increased
(c) Cost of retained earning is reduced
(d) Cost of debt is reduced - The cost of external equity would be different from share holders required rate of return
(a) If issue price is same as market price
(b) If issue price is at a premium equating it to market price
(c) If issue price is different from the market price
(d) If issue price is less than market price - In capital expenditure decisions for a new project the appropriate criteria for selection would be
(a) Simple average cost of capital
(b) Weighted average cost of capital
(c) Weighted average cost of incremental capital
(d) Historical cost of capital - Optimum size is one at which
(a) Cost and revenue are equal
(b) Earns normal profits
(c) Minimum average cost per unit is achieved with maximum efficiency
(d) Has fairly long life - The process of withdrawing one’s stakes either in full or part by the government is called
(a) Privatization
(b) Disinvestment
(c) Sales
(d) Lease - Representative firm is one which
(a) Has a fairly long life
(b) Has a fair success
(c) Has normal access to internal and external economics
(d) All the above - Exporter’s grievance cell was set up under
(a) EXIM policy 1987-92
(b) EXIM policy 1992-97
(c) EXIM policy 1997-2002
(d) EXIM policy 2002-07 - When the municipalities delegate the job of cleaning the streets to private agencies, it is called
(a) Operational strategy
(b) Outsourcing the activities
(c) Leasing
(d) Privatization - Which of the following can be used to compute working capital requirements?
(a) Patents
(b) Buildings
(c) Goodwill
(d) Raw materials - A plant is
(a) Owning and managing an establishment
(b) A congregation or body of persons assembled at a time or place for economic purpose
(c) Machinery
(d) Group of plants - Optimum size is not practically achievable because
(a) The determinant factors change
(b) Requires constant reconciliation of factors
(c) Impacts of factors are varying in nature
(d) All of above - Weight loosing materials results in
(a) Dispersal of industries
(b) Attracting plant to source
(c) Concentration of industries
(d) No impact on location - The father of administrative management is considered to be
(a) Sargenat florence
(b) Alfred waber
(c) Fredric taylor
(d) Hendry foyal - State industrial policy aims at
(a) Promotion of industries
(b) Control of Industries
(c) Regulation of industries
(d) All of the above - One of the identified distinction between managers and leaders is
(a) Develop- innovate
(b) Focus on structure- focus on people
(c) Imitates – Maintains
(d) Originates – Develops - Fiedler’s contingency model of leadership effectiveness does not deal with
(a) Member Relationship
(b) Traits
(c) Task structure
(d) Power position - Emerging transformational leaders follow
(a) Inspiration
(b) Management by exception
(c) Laissez- faire
(d) Management by objections - Among the following which is not a generally accepted trait of leadership
(a) Self- Discipline
(b) High education
(c) Integrity
(d) Intelligence - Which is not a quality of a good leader?
(a) Inner drive
(b) Mental maturity
(c) Emotional Balance
(d) Pushing followers - Training is to operatives as development is to
(a) Top and middle level managers
(b) Sales personnel
(c) Administrative personnel
(d) Workers - Emerging knowledge based organizations are characterized by
(a) Network of specialists
(b) Vertical division of labour
(c) Knowledge workers replacing operatives
(d) All of the above - The impact of information and technology on organization has resulted in
(a) Right sizing
(b) Paper less revolution
(c) Lesser interpersonal contacts
(d) All the above - Among the following which does not indicate a motivation process
(a) Psysiological or psychological imbalance
(b) Alleviation of need
(c) Want satisfaction
(d) Need restoration - Which is not a work motivation approach?
(a) X theory
(b) Content theory
(c) Process theory
(d) Cognitive theory - What does not represent a motivation process?
(a) Valence-expectance
(b) Job-satisfaction
(c) Performance-satisfaction
(d) Effort-reward-outcome - Which is not a formal group?
(a) Committee
(b) Teams
(c) Reference group
(d) Department - A factor not contributing to group effectiveness is
(a) Valency
(b) Proficiency
(c) Task interdependence
(d) Outcome interdependence - One of the following is a measure of efficiency identify
(a) No. of workers employed
(b) Raw material consumed
(c) Profitability
(d) Power consumed - According to one view, teams are said to differ from work group due to
(a) Focused leadership role
(b) Collective work products
(c) Working together
(d) Efficient meetings - One of the following is a diseconomy of multi-plant units, identify
(a) Economies of scale
(b) Bulk purchase
(c) Chain effect of wage revision of one unit
(d) Inter plant transfer of goods - The essential characteristic of planning is
(a) Link between objective and achivement
(b) Determination of objective
(c) Deciding organizational variables
(d) Deciding the tools to be used - Organising is
(a) Choosing among alternate courses of action
(b) Determining staff to man position
(c) Determining and grouping of activites
(d) Motivating people - When the location of two units is planned at one place, it is termed
(a) Locational coupling
(b) Split-Location
(c) Duopoly
(d) Joint venture - Control mechanism intends to verify
(a) Quantity and Quality
(b) Cost
(c) Time
(d) Cost,Time, Quality and Quantity - Which among the following is not an element of control process?
(a) Setting basis
(b) Correcting deviation
(c) Measuring actual
(d) Establishing relationship - To make planning effective it is incorporated with
(a) Accurate forecasting
(b) Planning premises
(c) Contingency planning
(d) Standard planning - Control may become ineffective if
(a) It is flexible
(b) It is uneconomical
(c) It is not understandable
(d) Deviations are expeditiously reported - Settlement methods of dispute may be
(a) Conciliation
(b) Arbitration
(c) Conciliation and arbitration
(d) Negotiation - Collective bargaining may be considered as a
(a) Dispute prevention mechanism
(b) Dispute elimination
(c) Dispute creating mechanism
(d) Dispute adjourning mechanism - The legal machinery for settlement of disputes is
(a) Labour courts
(b) Conciliations
(c) Arbitration
(d) Negoriations - When more number of agriculture workers are engaged than the number that more land can bear, interms of productivities, we say following is present?
(a) Under employment
(b) Full employment
(c) Disguised unemployment
(d) Structural unemployment - Decentralisation is beneficial in?
(a) Utilization of personal leadership
(b) Uniformity in action
(c) Facilitating growth and deversification
(d) Avoiding duplication of efforts - A private limited company
(a) Allows free transfers of shares
(b) Prohibits the transfer of shares
(c) Restricts the transfer of shares, through conditions
(d) Leaves it to the discreation of directors to permit transfer or not - On which of the following counts decentralization differs from delegation
(a) Dispersal of not only authority but also other facilities
(b) Systematic delegation to enjoy autonomy
(c) Concentration
(d) Shifting of premises - Congenial organization climate is said to exist when there is
(a) Sell restraint and control
(b) Co-ordinated approach
(c) Mutual trust and help
(d) All of the above - Systems approach of organizations emphasizes
(a) Vertical relationship
(b) Lateral relationship
(c) Horizontal relationship
(d) Synergy - Contingency approach of organization theory suggests that organization design be
(a) Typical
(b) Common
(c) Tailor made
(d) Firm - Organisation chart is expected to disclose
(a) Formal relationship
(b) Informal relationship
(c) Channels of formal authority
(d) Relative authority - Organisational conflict leads to
(a) Creativity and innovation
(b) Group cohesion
(c) Tension
(d) Teamwork - Span of supervision deals with the problems of
(a) Horizontal dimension
(b) Vertical dimension
(c) Lateral dimension
(d) All the above - Span of management is determined by
(a) Capacity of supervisor
(b) Capacity of subordinates
(c) Degree of decentralisation
(d) All of the above - Authority involves
(a) Subordinate – Subordinate relationship
(b) Superior – Subordinate relationship
(c) Superior – Superior relationship
(d) All the above - Power does not deal with
(a) Informal command
(b) Sense of obligation
(c) Identification with the manager
(d) Perceived dependence on a manager - One of the following Act intended for controlling large industrial houses is repealed now. Identify?
(a) SEBI Act
(b) Sick Industrial Companies Act
(c) Consumer Protection Act
(d) MRTP Act 1969 - Delegation of authority is
(a) A factor in a process of organizing
(b) A base for decentralisation
(c) Power to carry out responsibilities
(d) All the above - Which is not a principal of delegation
(a) Parity of authority and responsibility
(b) Delegation of responsibility
(c) Maintenance of authority levels
(d) Formal relationship among authority levels - Effective delegation takes place through
(a) ‘Not- invented- here policy
(b) Tight Control
(c) Love of authority
(d) Lack of delegation - Line authority is characterized by
(a) Only downward authority
(b) Only upward authority
(c) Only lateral authority
(d) Only advisory - Staff authority is characterized by
(a) Scalar principal
(b) Direct line
(c) Advisory
(d) Functional - One of the following is a propulsive industry form which industrialization spreads, identify
(a) Bakery unit
(b) Beed making unit
(c) HMT Ltd.
(d) Rice Mill - Functional authority exists when
(a) Line superior empowers staff the authority to act
(b) Staff adviser transmits and recommends line manager
(c) Staff are empowered to issue orders
(d) All the above - Line- Staff conflict can be resolved not by
(a) Proper use of staff
(b) Complete staff work only
(c) Effective communication among line and staff
(d) Proper coordination among line and staff - A sugar manufacturing unit takes up the production of chocolats also: this is called
(a) Vertical business
(b) Diversification of business
(c) Horizontal business
(d) Conglomeration business - T-Group training is an example of
(a) Brain storming
(b) Sensitivity training
(c) Role playing
(d) Management games - Inductive method is used in explaining location theory by
(a) Alfred Weber
(b) Peroux
(c) Sargent Florance
(d) Alfred Marshall - According to industrial policy statement 1991 a small scale unit is one
(a) Which employs more 20 employees
(b) Where capital investment is less than Rs. 5 lakhs
(c) Where capital investments is less than 3 crores
(d) Which is linked to another big unit - Principal barriers to effective appraisal are
(a) Halo effect
(b) Raters bias
(c) Central tendency
(d) All of above - The relationship between morale and productivity may be described, as having
(a) Absolute relation
(b) Some positive correlation
(c) Some negative correlation
(d) Directly proportional - Which of the following is a private sector multiplant unit?
(a) HAL
(b) HMT
(c) Reliance petrochemicals Ltd.
(d) BHEL - Morale is more associated with
(a) Emotional aspects of individual on the job
(b) Emotional aspects of groups on the job
(c) Rational aspects of individual aspects
(d) Jobenrichmants participation - Semantic barriers in communication arises due to
(a) Badly expressed message
(b) Premature evaluation
(c) Poor retention
(d) No expression - Grapevine is an example of
(a) Formal communication
(b) Informal communiaction
(c) Written communication
(d) Pictorial communication - Stock turnover ratio is a
(a) Liquidity ratio
(b) Profitability ratio
(c) Solvency ratio
(d) Performance ratio - Net worth of business means
(a) Equity capital
(b) Total assets
(c) Total assets minus total outsiders liabilities
(d) fixed assets minus current assets - The flow of fund is said to have taken place when
(a) Cash paid to creditors
(b) Cash received from debtors
(c) Machinery is purchased for cash
(d) When a bill is discounted - Contribution means
(a) Sales less fixed cost
(b) Fixed cost less profit
(c) Fixed cost plus profit
(d) Variable cost plus profit - “ A budget designed to furnished budgeted costs for any level of activity actually attained” is called
(a) Cash budget
(b) Flexible budget
(c) Master budget
(d) Production budget - Liquid liabilities include
(a) Creditors only
(b) Creditors and deptors
(c) Creditors and unpaid expenses
(d) Bills payable and bills receivables - Which of the following item is not an operating expense?
(a) Salary
(b) Depreciation
(c) Income tax
(d) Lease rental - The ability of a company to meet its short-terms obligations is known as
(a) Liquidity
(b) Solvency
(c) Profitability
(d) Trading on equity - Marginal cost means
(a) Additional cost
(b) Fixed cost
(c) Opportunity cost
(d) Sunk cost - Working capital is the excess of
(a) Fixed assets over fixed liabilities
(b) Fixed assets over current assets
(c) Current assets over current liabilities
(d) Current assets over fixed liabilities - NPV and Profitability index methods give different results when
(a) Investment differ
(b) Investment are same
(c) Period differs
(d) Profitability differs - Cost of retained earnings is calculated by taking
(a) Opportunity cost
(b) Explicit cost
(c) Specific cost
(d) Implicit cost - In the context of share buy back option the method of calculating cost of equity is
(a) Dividend approach
(b) Dividend plus growth approach
(c) Earnings approach
(d) None of the above - Pay back method is applicable in case of
(a) Shortage of funds
(b) Excess fund
(c) Threat of new technology
(d) Fund diversion - 66Percent of the sick units become sick due to one of the following causes as per the RBI study group (Tiwari committee) Report
(a) Marketing problems
(b) MIs management
(c) Power problems
(d) Workers strikes - Trade unions are______of workers to promote and protect the interest of workers through collective action. ( Tick the correct choice which can will the above blank)
(a) Voluntary organizations
(b) Government organizations
(c) Industrial organizations
(d) Compulsory organizations - Defect of the trade union movement in India is
(a) Loyal to workers
(b) Full time paid officer
(c) Poor finances
(d) Multi unions and inter union rivalry - Trade union movement gets strengthened through
(a) Money investment
(b) Reducing the numbers
(c) Eliminating political interference
(d) Employers - The main cause of industrial disputes in India is
(a) Discrimination of workers.
(b) Indiscipline
(c) Wages and allowances
(d) Retrenchment - Lock out is declared by
(a) Workers
(b) Law
(c) Government
(d) Employers - Wage representing a standard of living for maintenance of health and decency is known as
(a) Fair wage
(b) Living wage
(c) Real wage
(d) Minimum wage - Main objectives of national wage policy is not
(a) To ensure minimum wage
(b) To prevent exploitation of labour
(c) To provide tax benefits
(d) To Reduce wage differentials - Social security scheme is not present in one of the following
(a) Provident funds
(b) Conciliations
(c) Pension scheme
(d) Gratuity scheme - Unity, ability to negotiate, collective action, strength of information are the features of
(a) Collective bargaining
(b) Worker’s participation in management
(c) Strike
(d) Lobbying - National rural employment guarantee program is started in the year
(a) 1980
(b) 2004
(c) 1991
(d) 1996 - Employment generation is not possible through
(a) Economic infrastructure
(b) Expansion of social infrastructure
(c) Urbanization and dis investment
(d) Financial year - Employment guarantee as NREGP Refers to
(a) Payment of Rs. 6,000 per family per year
(b) Work Allocation
(c) Unemployment allowance
(d) Full employment - The appropriate government has been empowered to appoint U/S 4 of the Industrial Disputes Act, 1947, a/an
(a) Inspector
(b) Conciliation officer
(c) Health officer
(d) Health inspector - The appropriate government may constitute a court for enquiring into matter appearing to be connecting with or relevant to an industrial dispute, it is called
(a) Health Inspector
(b) Negoriator
(c) court of inquiry
(d) Commissioner - The duty of works committee is
(a) To endeavour to compose any material difference of opinion
(b) To Allocate work
(c) To give Wages
(d) To allocate bonus - When a worker absent himself without any information when he is scheduled to be present it is termed as
(a) Turnover
(b) Absenteism
(c) Lay out
(d) Labour mobility - Causes for absenteeism in Indian does not include
(a) Working conditions
(b) High wages
(c) Seasonal factors
(d) Festivals - Workers participation in management becomes more successful when
(a) Workers do not have unions
(b) Wherever the collective bargaining is weak
(c) Pressure groups and negotiations are active
(d) Workers and management trust each other and share complete information - Balanced regional development does not seek to encourage
(a) Location of industry
(b) Concentration of industry
(c) Dispersal of industries
(d) Industrial in Backward areas - One of the following cannot be discussed in workers participation in management
(a) Wages and bonus for workers
(b) Working conditions
(c) Productivity improvement
(d) Computerization of work - One of the following cannot be a cause of unemployment in India in a given environment
(a) High population
(b) Lack of required skills
(c) Frictional unemployment
(d) Agricultural productivity - “Union of workers of belonging to the same occupation is
(a) Craft union
(b) General union
(c) Industrial union
(d) Independent union - Training is necessary for
(a) New employees only
(b) Existing employees only
(c) New and existing employees
(d) Employers only - The relative worth or money value of a job is determined by
(a) Job Analysis
(b) Manpower Planing
(c) Job Evaluation
(d) Job enrichment - A sound relationship between the employee and his job is established by a sound
(a) Man power planning
(b) Recruitment process
(c) Training
(d) Development - Scientific method study is also known through
(a) Motion study
(b) Work simplification
(c) Emotional study
(d) Psychological study - Time study is other wise known as
(a) ABC analysis
(b) Work measurement
(c) Overtime
(d) Work simplification - Efficient management of incentives may results in
(a) Less profit margin
(b) More profit margin
(c) No effect in profit
(d) No profit margin - Process layout is otherwise called
(a) Product layout
(b) Functional layout
(c) Line layout
(d) Factor layout - Financial decision involve
(a) Investments, financing and dividend decisions
(b) Investments, financing and sales decisions
(c) Financing, dividend and cash decisions
(d) Sales, cash and investment decision - Cost of capital comprises
(a) Market risk
(b) Financial risks
(c) Business risks
(d) Financial and business risks - A high BEP would indicate a
(a) High financial leverage
(b) Low financial leverage
(c) High operating leverage
(d) Low operating leverage - Over capitalization is indicated by
(a) High proprietary ratio
(b) Low proprietary ratio
(c) High Debt to equity ratio
(d) Trading on equity - The cost of capital of the firm is
(a) Minimum rate of return
(b) Maximum rate of return
(c) Normal rate of return
(d) No rate of return - Which one of the following is connected with cash management?
(a) EOQ
(b) NET float
(c) Idle time
(d) Trade discount - Trading on equity is a situation where ROI is
(a) More than cost of debt
(b) Less than cost of debt
(c) Equals cost of debt
(d) Nothing to do with debt - EBIT level at which EPS remain the same irrespective of the debt-Equity mix is termed as
(a) Break even point
(b) Critical point
(c) Point of indifference
(d) Optimum point - Arbitrage process is the operational justification for
(a) Relevance model
(b) Irrelevance model
(c) Traditional model
(d) Operational model - The term ‘funds’ as used in funds flow statement is
(a) Current assets
(b) Cash
(c) Working capital
(d) Current liabilities - Which of following is the source of fund?
(a) Purchase of machinery
(b) Profit earned
(c) Issue of share capital
(d) Loan raised - Depreciation of machinery is
(a) Source of fund
(b) Application of fund
(c) Both a and b
(d) None of the above - Period costs are other known as
(a) Variable costs
(b) Fixed costs
(c) Semi-variable cost
(d) Marginal costs - Contribution margin is also known as
(a) Gross profit
(b) Net income
(c) Marginal income
(d) Average profit - The basis difference between Absorption costing and marginal costing can be traced by looking into
(a) Sales
(b) Fixed cost
(c) Variable cost
(d) Marginal cost - The first step in preparing a Budget is
(a) Cost estimation
(b) Sales forecast
(c) Production forecast
(d) Working capital - In the long term financial analysis the stress is on
(a) Working capital
(b) Earning potential
(c) Stability of earning potential of the concern
(d) Liquidity position of the firm - Discounted cash flow is a Technique of
(a) Cash flow analysis
(b) Cash management
(c) Capital Budgeting
(d) Cost of capital - Statistical Quality Control is a part of
(a) Materials management
(b) Production management
(c) Marketing management
(d) Personnel management - Which one of the following is correct?
(a) Location precedes layout
(b) Layout precedes location
(c) Both are concurrent
(d) Both conflicting each other
