- The company which invests, produces, markets and operates across the world is called
(a) Global Company
(b) Multinational Company
(c) International Company
(d) Transnational Company - The key drivers of globalisation are
(a) Govt. action, privatisation, cost and competition
(b) Cost advantages, economic cycles,Govt. action and competition
(c) Market convergence, exchange rates, cost advantages and socio- demographic factors
(d) Govt. policies, cost, market and competition - Statements :
(i) Threat of entrant is the possibility of a potential competitor entering a different market.
(ii) Threat of substitute is high if the substitute product provides a higher perceived value or benefit.
(a) is correct (ii) is incorrect
(b) is correct (i) is incorrect
(c) Both are correct
(d) Both are incorrect - Match the following :
Name of the Member Trading Block Countries
(a)NAFTA (i) Australia, New Zealand
(b)AMU (ii) US, Canada,Mexico
(c)ANZCERT (iii) SAARCcountries
(d)SAPTA (iv) Algeria, Libya,Mauritania
Codes :
(a) (b) (c) (d)
(a) (i) (ii) (iii) (iv)
(b) (ii) (iv) (i) (iii)
(c) (iii) (iv) (ii) (i)
(d) (iii) (ii) (i) (iv) - Factors preventing a potential competitor entering the market are
(a)Income of consumers
(b)High capital costs
(c)Product differentiation
(d)Govt. policy
Codes :
(a) (d) and (b)
(b) (c) and (d)
(c) (b) and (c)
(d) (a) and (d) - Which one of the following should be considered as revenue expenditure ?
(a) Rs. 1,000/- paid for erection of a new plant
(b) Cost of Rs. 10,000 incurred in increasing the sitting accommodation of a hotel
(c) Damages paid on account of breach of a contract to supply certain goods
(d) Repairs to second hand machinery purchased - A and B are sharing profits in the ratio of 3 : 2. They admit a new partner C with 1/5 share in profits of the firm. The new profit sharing ratio between the partners will be
(a) 12 : 8 : 5
(b) 8 : 12 : 5
(c) 2 : 2 : 1
(d) 3 : 2 : 1 - Which one of the following statements is incorrect ?
(a)Share premium received on issue of shares can be utilized for writing off the preliminary expenses of the company
(b)Capital redemption reserve is available only for issuing fully paid bonus shares
(c)Discount on issue of shares is shown as a reduction from capital account in the balance sheet
(d)Right shares issued to the existing equity shareholders is calledcpre-emptive right - Match List – I with List – II :
List – I List II (a)Financial Leverage 1) Efficiency (b)Quick ratio 2) Profitability (c)Stock turnover ratio 3) Risk (d)Margin on sales 4) Liquidity Codes : a) b) c) d)
(a) 3 4 1 2
(b) 4 3 1 2
(c) 4 3 2 1
(d) 3 4 2 1 - Which of the following affect the break even point ?
(1) Number of units sold
(2) Variable cost per unit
(3) Total fixed cost
(4) Margin of safety
(a) 1, 3 and 4
(b) 1, 2 and 3
(c) 2, 3 and 4
(d) 1 and 3 - The demand curve of a monopolist is
(a) Parallel to X-axis
(b) Parallel to Y-axis
(c) Slopes downwards from left to right
(a) Rises upward from left to right - If the point elasticity of demand is equal to one, the marginal revenue will be equal to
(a) Average Revenue
(b) Zero
(c) Positive
(d) Negative - Assertion (A) : If the two factors of production are complements, the marginal rate of technical substitution between them does not diminish.
Reasoning (R) : If the two factors of production are complements, it implies that they are used in fixed proportions.
Codes :
(a) Both (A) and (R) are correct
(b) is correct and (R) is incorrect
(c) Both (A) and (R) are incorrect
(d) is incorrect and (R) is correct - Match the following :
List – I List – II (a)Giffin paradox (i) Status symbol commodity (b)Conspicuous consumption (ii) Expansion pathcurve (c)Production function (iii) Isoquant (d)Optimum factor (iv) Law of demand combination Codes :
(a) (b) (c) (d)
(a) (iv) (i) (ii) (iii)
(b) (i) (iii) (iv) (ii)
(c) (iv) (iii) (ii) (i)
(d) (iii) (ii) (i) (iv) - Which of the following is (are) correct ?
(i)Exceptional demand curve slopes upward
(ii)Exceptional demand curve slopes downward
(iii)Generally demand curve slopes upward
(iv)Generally demand curve remains vertical
Codes :
(a) and (ii)
(b) Only (i)
(c) Only (iv)
(d) (ii), (iii) and (iv) - For a particular hypothesis test,α= 0.05 andβ= 0.10. The power of such a test is
(a) 0.15
(b) 0.90
(c) 0.85
(d) 0.95 - When the Null Hypothesis is H0:μ = 42, the alternative hypothesis can be
(a) H1 : μ > 42
(b) H1 : μ <42
(c) H1 : μ < 42
(d) H1 : μ ≠ 42 - Decision maker makes decisions at the appropriate significance level by determining the cost of
(i) Performing the test
(ii) Type-I error
(iii) Type-II error
Codes :
(a) and (ii)
(b) and (iii)
(c) and (iii)
(d) (i), (ii) and (iii) - Assertion (A) : The numerical value of coefficient of correlation explains total variation in dependent variable.
Reasoning (R) : The numerical value of coefficient of determination explains that fraction of total variation that is explained.
Codes :
(a) Both (A) and (R) are correct
(b) is correct and (R) is incorrect
(c) is incorrect and (R) is correct
(d) (D) Both (A) and (R) are incorrect - Match the following :
List – A List – B (Sum of Squares) (Degrees of Freedom) (a) SSC (i) (n – 1) (b) SSR (ii) (c – 1) (c) SSE (iii) (r – 1) (d) SST (iv) (c – 1) (r – 1) Codes :
(a) (b) (c) (d)
(a) (i) (ii) (iii) (iv)
(b) (iv) (iii) (ii) (i)
(c) (ii) (i) (iii) (iv)
(d) (ii) (iii) (iv) (i) - “An ideal organisation to be bureaucracy, whole activities and objectives were rationally thought and whose divisions of labour were explicitly spelled out”. Who considered the above statement ?
(a) Chester I. Bernard
(b) Max Weber
(c) Henry Fayol
(d) Henry L. Gantt - The key elements of organisational behaviour are
(a) Motivation, direction and leadership
(b) Group of people who work interdependently
(c) People and their behaviour
(d) People, structure and technology - Arrange the following motivating needs in the order of ascendance as identified by Maslow.
(a) Esteem needs
(b) Safety needs
(c) Physiological needs
(d) Social needs
(a) Self actualisation needs
Codes :
(a) (i), (ii), (iv), (v) and (iii)
(b) (ii), (i), (iii), (v) and (iv)
(c) (iii), (ii), (iv), (i) and (v)
(d) (v), (iii), (iv), (ii) and (i) - Statements :
(i) Robert Owen is known as the father of modern personnel management.
(ii) Prof. Mayo conducted time and motion studies at Hawthorne works of Western Electric Company.
Codes :
(a) Both are true
(b) Both are false
(c) (i) is true, (II) is false
(d) (i) is false, (II) is true - Match the following :
List – I List – II (a) Habit 1) Organisational level (b) Cohesion 2) Individual level (c) Power and 3) Group level conflict Codes :
i ii iii
(a) 1 3 2
(b) 3 2 1
(c) 2 3 1
(d) 2 1 3 - “Marketing is gardening”. This is implied in
(a) The product concept
(b) The selling concept
(c) The marketing concept
(d) The holistic marketing concept - Product – Market Expansion grid was proposed by
(a) P. F. Drucker
(b) Michael Porter
(c) Ansoff
(d) Theodore Levitt - Which of the following is (are) responsible for strategic planning gap ?
(i) Intensive growth
(ii) Integrative growth
(iii) Diversification growth
Codes :
(a) (i) and (ii)
(b) (i) and (iii)
(c) (ii) and (iii)
(d) (i), (ii) and (iii) - Assertion (A) : Market development strategy enables the company to gain more market share.
Reasoning (R) : Diversification strategy leads to an increase in market share.
Codes :
(a) Both (A) and (R) are correct
(b) is correct and (R) is incorrect
(c) is incorrect and (R) is correct
(d) Both (A) and (R) are incorrect - Match the following :
List – I List – II (a) Width of product-mix (i) Number of variants in the product line (b) Depth of product-mix (ii) Closely related product lines (c) Length of product-mix (iii) No. of items in the product mix (d) Consistency of product-mix (iv) Number of product lines Codes :
(a) (b) (c) (d)
(a) (i) (ii) (iii) (iv)
(b) (iv) (iii) (ii) (i)
(c) (iv) (iii) (i) (ii)
(d) (iii) (iv) (ii) (i) - According to Walter model, if ‘r’ is the internal rate of return, ‘g’ is the growth rate and ‘k’ is the cost of capital under which of the following conditions the optimal payout ratio is 100% ?
(a) r = ke
(b) r < ke(c) r > ke
(d) g > ke - Which of the following is not a ‘value driver’ that affects the value of a firm according to Alcar model ?
(a) Operating profit margin
(b) Cost of capital
(c) Book value of the firm
(d) Income Tax Rate - Since companies in some industries have high fixed costs, but have stable and predictable revenues, which of the following statement would be true about these companies ?
(a) The degree of operating leverage is relatively low
(b) Their bond issues would tend to have a speculative rating
(c) Their overall business risk is relatively low
(d) They are unable to take on much additional financial risk - X Co. has target ROE of 14%. The financial leverage of the company is 0.5. The corporate rate tax applicable to the company is 30%. If the average cost of debt is 9.5%, the ROI that the company should earn to achieve the target ROE is
(a) 16.5%
(b) 18.25%
(c) 19.35%
(d) 20.20% - Match List – I with List – II :
List – I List II (a) Operating Income S tock 1) Cost of goods sold to average (b) Capital employed 2) Profits before depreciation, interest and tax (c) Inventory turnover 3) Net fixed assets investment and networking Capital (d) Gross cash flow 4) Total funds invested Profits before interest and taxes Codes :
(a) (b) (c) (d)
(a) 2 1 4 5
(b) 1 3 4 2
(c) 2 1 3 4
(d) 5 3 1 2 - The individual who recognised the link between pay and performance for the first time
(a) Elton Mayo
(b) F. W. Taylor
(c) Herzberg
(d) Kohn - contains data about each employee’s skills, abilities and work experience etc.
(a) Bio-data
(b) Personnel record
(c) Skills inventory
(d) Appraisal form - Statements :
(I) An arbitrator is an outside third party who is brought into settle a dispute and he or she has the authority to make a decision.
(II) Man power planning is needed in order to identify an organisations need to have optimum workforce.
Codes :
(a) Both are correct
(b) Both are incorrect
(c) (i) is correct, (II) is incorrect
(d) (ii) is correct, (I) is incorrect - Match the following :
(I) Personality (i) Ability to do the job (II) Aptitude (ii) Stable pattern of behaviour (III) Skills inventory (iii) Measuring the performance (IV) Performance appraisal (iv) Capacity to acquire skill Codes :
(a) (b) (c) (d)
(a) (i) (ii) (iv) (iii)
(b) (ii) (iv) (i) (iii)
(c) (iv) (i) (iii) (ii)
(d) (iv) (ii) (iii) (i) - Which of the following statements are true ?
(i) The term salary is commonly used for those employees whose pay is calculated according to the number of hours worked.
(ii) The word dynamics is derived from a Greek word which means power.
(iii) Time scale for performance appraisal is usually one year.
(iv) Human relations theory focuses on informal organisation.
Codes :
(a) (i) and (ii) are correct, (iii) and (iv) are incorrect
(b) (i) and (ii) are incorrect, (iii) and (iv) are correct
(c) (ii) and (iv) are correct, (i) and (iii) are incorrect
(d) (i), (ii) and (iii) are correct, (iv) is incorrect - The concept of Mutual Funds was started with Unit Schemes of Unit Trust of India in in
(a) 1974, India
(b) 1982, Canada
(c) 1964, Chicago
(d) 1964, India - Ad hoc Treasury Bills are issued in favour of only.
(a) Commercial Banks
(b) Scheduled Banks
(c) Reserve Bank of India
(d) Regional Rural Banks - Which of the following liabilities are taken into account for acid test ratio ?
(a) Outstanding expenses
(b) Bills payable
(c) Bank overdraft
(d) Trade creditors
(a) Redeemable debentures
Codes :
(a) (i), (ii), (iii) and (iv)
(b) and (ii) only
(c) (i), (iii) and (iv)
(d) All of the above - Statements :
(i) The debit card will free you from carrying cash or a cheque book.
(ii) Debit cards are readily accepted than cheques.
Codes :
(a) Both are incorrect
(b) Both are correct
(c) (I) is correct and (II) is incorrect
(d) (I) is incorrect and (II) is correct - Match the following :
List – I List II Bank Merged with (a) New Bank of India 1) Punjab National Bank (b) Bank of Madura 2) HDFC Bank (c) Times Bank 3) Oriental Bank (d) Global Trust Bank 4) ICICI Bank Codes :
(a) (b) (c) (d)
(a) 2 3 1 4
(b) 1 4 2 3
(c) 3 1 4 2
(d) 4 1 3 2 - Which of the following is an account that shows the transactional relationship between countries ?
(a) Capital account
(b) Balance of payments accounts
(c) Operational account
(d) Current account - In which of the following levels of economic integration, do the member countries have common currency, fiscal and monetary policies ?
(a) Free Trade Area
(b) Customs Union
(c) Economic Union
(d) European Union - Which of the following statements is/are true regarding in foreign exchange market ?
(i)A higher spread indicates higher trade in the currency.
(ii)A very low spread is an indication of high liquidity in the markets for the currency.
(iii)Bid is the price at which the dealer will sell the currency and ask is the price at which the dealer buys the currency.
Codes :
(a) Only (I) above
(b) Only (II) above
(c) Only (III) above
(d) Both (I) and (III) above - Which of the following covers agreement on Trade Related Aspects of Intellectual Property Rights (TRIPs) ?
(i)Enforceable rights in trade
(ii)Logical method of claiming property
(iii)Intellectual property
Codes :
(a) Only (III) above
(b) Both (II) and (III) above
(c) Only (I) above
(d) Both (I) and (III) above - Match List – I with List – II :
List – I List II (a)EOUs, SEZs, EHTPs, STPs 1) Trade Deficit (b)BOP 2) International Economic Institutions (c)IMF, IFC, ADB 3) Export Houses (d)Leading 4) Advance Payment of Foreign Borrowings (e) Foreign Borrowings in Advance Codes:
(a) (b) (c) (d)
(a) 3 1 2 5
(b) 3 1 2 4
(c) 2 1 3 4
(d) 2 1 3 5Answer Key
1 (d) 2 (d) 3 (b) 4 (b) 5 (c) 6 (c) 7 (a) 8 (c) 9 (a) 10 (b) 11 (c) 12 (b) 13 (a) 14 (a) 15 (b) 16 (b) 17 (d) 18 (c) 19 (c) 20 (d) 21 (b) 22 (d) 23 (c) 24 (c) 25 (c) 26 (c) 27 (c) 28 (d) 29 (a) 30 (c) 31 (b) 32 (c) 33 (c) 34 (a) 35 (d) 36 (b) 37 (c) 38 (a) 39 (b) 40 (b) 41 (d) 42 (c) 43 (a) 44 (b) 45 (b) 46 (b) 47 (c) 48 (b) 49 (a) 50 (b)