- Liberalisation means
(a) Opening up of the economy to the world market
(b) Reducing the unwanted restriction on trade and industry
(c) Reducing the number of reserved industries to a few
(d) Welcoming more foreign direct investment into the economy - Statements :
I. Penetration pricing is most suitable for electronic goods.
II. The objective of skimming price policy is to penetrate the market with the lowest possible price.
(a) Both are correct
(b) I correct, II wrong
(c) I wrong, II correct
(d) Both are wrong - Which of the following is not an element of micro environment of business ?
(a) Trade policy
(b) Suppliers
(c) Competitors
(d) Public - Which of the following is not an instrument of monetary policy ?
(a) Statutory Liquidity Ratio
(b) Open Market Operations
(c) Levying Taxes
(d) Cash Reserve Ratio - Match the following legislations with the year of their enactment :
a. Foreign Exchange Management Act i. 1948 b. Factories Act ii. 1999 c. Monopolies and Restrictive Trade Practices Act iii. 1986 d. Consumer Protection Act iv. 1969 Codes :
a b c d
(a) ii i iii iv
(b) ii i iv iii
(c) iii iv ii i
(d) iii iv i ii - In which one of the following methods of charging depreciation shall the balance never be reduced to zero ?
(a) Fixed Installment Method
(b) Depreciation Fund Method
(c) Diminishing Balance Method
(d) Depletion Unit Method - Match List – I with List – II and select the correct answer using the following codes given below the lists :
List – I(Types of Accounts) List – II (Principles) a. Real Accounts 1. Debit the receiver and credit the giver b. Nominal 2. Debit what Accounts comes in credit what goes out c. Personal 3. Debit all Accounts expenses and credit all gains Codes :
a b c
(a) 3 2 1
(b) 1 3 2
(c) 2 3 1
(d) 1 2 3 - Garner Vs. Murray rule applies in case of
(a) Admission of a partner
(b) Dissolution of a firm
(c) Retirement of a partner
(d) Death of a partner - A company offered 5,000 shares for subscription. The company received applications for 6,000 shares. The shares were allotted on pro-rata basis. If X has applied for 180 shares how many shares would be allotted to him ?
(a) 180 shares
(b) 200 shares
(c) 150 shares
(d) 175 shares - Cost of goods sold is calculated as
(a) Cost of goods manufactured + Opening stock of finished goods – Closing stock of finished goods
(b) Cost of goods manufactured – Opening stock of finished goods –Closing stock of finished goods
(c) Cost of goods manufactured –Opening stock of finished goods +Closing stock of finished goods
(d) Cost of goods manufactured +Opening stock of finished goods +Closing stock of finished goods - Elasticity of demand for necessities is
(a) Infinite
(b) Equal to zero
(c) More than one
(d) Less than one - Price discrimination is possible and profitable when different markets have
(a) Different elasticity of demand
(b) Inelastic demand
(c) Same elasticity of demand
(d) Infinite elasticity of demand - A seller can sell additional quantity of his product without reducing the price in
(a) Monopoly market
(b) Oligopoly market
(c) Perfectly competitive market
(d) Monopolistic market - An example of derived demand is
(a) Milk
(b) Money
(c) Manufactured goods
(d) Fertilizers - When marginal utility is negative, total utility
(a) Increases
(b) Is negative
(c) Decreases
(d) Is zero - Chi-square test can be used only when
(a) All the items in the sample are independent
(b) All the items in the sample are dependent
(c) All the items are disbursed abnormally
(d) The sampling method is non-random - When skewness is zero,
(a) Mean is equal to median but not mode
(b) Mean is equal to median and mode
(c) Mean is equal to mode but not median
(d) Mean, median and mode will have different values - Match the items from List – 1 with the items in List – 2.
List – 1 List – 2 a. Chi-square test 1. Secondary data b. Annual reports 2. Information system c. Multivariate 3. Hypothesis testing d. Data processing 4. Factor analysis Codes :
a b c d
(a) 4 2 1 3
(b) 3 4 1 2
(c) 3 1 4 2
(d) 4 1 3 2 - Factor analysis is a
(a) Univariate statistical technique
(b) Bivariate statistical technique
(c) Multivariate statistical technique
(d) Simple statistical technique - When the population of the study is not properly defined
(a) It is a sampling error
(b) It is a non-sampling error
(c) It is not an error at all
(d) None of the above - The line of authority is clearly defined
(a) Principle of unity of command
(b) Principle of equity
(c) Principle of scalar chain
(d) Principle of authority and responsibility - Choosing a specific path of action of achieve desired results
(a) Policy
(b) Procedure
(c) Programme
(d) Strategy - Leadership style in which followers have ample of freedom in fixing targets
(a) Participative
(b) Democratic
(c) Consultative
(d) Free-rein - Arrange the following steps of planning in a proper sequence :
i. Developing premises
ii. Evaluating alternative courses
iii. Being aware of opportunities
iv. Selecting a course
v. Establishing objectives
(a) i iii iv ii v
(b) i iii ii v iv
(c) iii v i ii iv
(d) iii v i iv ii - Following is not a barrier of communication
(a) Unclarified assumptions
(b) Closed mind
(c) Open mind
(d) Loss by transmission - Which of the following is not the stage of product life cycle ?
(a) Introduction
(b) Growth
(c) Market segmentation
(d) Decline - Which of the following is an example of an external threat ?
(a) New trade regulations
(b) Decreased competition
(c) Global sales potential
(d) Economies of scale - Which of the following is not a tool of sales promotion ?
(a) Sales contests
(b) Public relations
(c) Point of purchase display
(d) Free gifts - Which concept of marketing do places greater emphasis on techniques and
technology of production ?
(a) Production
(b) Product
(c) Selling
(d) Marketing - Fill in the blanks :
Statements Alternatives
a. Loyal customers 1. Less attention ______ products.
b. Loyal customers 2. Cheaper are______ sensitive.
c. Loyal customers 3. Less price pay ________ to competitors advertising.
d. Serving existing 4. Buy more customer is ____.
Codes :
a b c d
(a) 3 1 2 4
(b) 4 3 1 2
(c) 2 1 3 4
(d) 4 3 2 1 - In MM-model irrelevance of capital structure is based on
(a) Cost of equity and debt
(b) Arbitrage process
(c) Decreasing Ko
(d) Decreasing Kd - Current ratio shows the
(a) Long term financial position of company
(b) Financial soundness of business
(c) Capacity of paying dividends to shareholders
(d) Short term financial strength of business - Internal rate of return is
(a) The rate of return at which NPV is zero
(b) The rate at which NPV is zero
(c) The rate at which NPV is one
(d) The rate at which profitability is zero - A dividend payment made in the form of additional shares issued is known as
(a) Bonus Shares
(b) Ex-Dividend
(c) Cum-Dividend
(d) Stock Dividend - Which one of the following is irrelevant for measuring financial leverage ?
(a) Cost of debt
(b) Cost of equity
(c) Cost of goods sold
(d) Debt-equity ratio - In which order the following aspects of manpower planning operate in established organisations
i. Recruitment
ii. Job analysis
iii. Manpower inventory
iv. Manpower forecasting
(a) iii ii iv i
(b) ii iv iii i
(c) iv iii ii i
(d) iii ii i iv - Who among the following are not included as members of Wage Board ?
(a) Employer’s representatives
(b) Worker’s representatives
(c) Consumer’s representatives
(d) Wage experts and economists - 360° appraisal refers to the appraisal to be done by
(a) Superiors and subordinates
(b) Superiors, subordinates and customers
(c) Superiors, subordinates, customers and peers
(d) Appraisal committee - Which one of the following is not one of the forms of worker’s participation in management ?
(a) Joint management council
(b) Works committee
(c) Canteen committee
(d) Shop level council - Which one of the following is not a fringe benefit ?
(a) Transport
(b) Dearness allowance
(c) Free education to children
(d) Subsidized canteen facility - ‘Repo Rate’ refers to the rate at which
(a) RBI borrows short term money from the market
(b) Banks keep the money with RBI
(c) Bills are discounted by RBI
(d) Forex is purchased by RBI - In order to control credit
(a) CRR should be increased and bank rate should be decreased
(b) CRR should be decreased and bank rate should be decreased
(c) CRR should be increased and bank rate should be increased
(d) CRR should be decreased and bank rate should be increased - Retail Banking means
(a) Credit facilities extended to retail traders
(b) Providing personal banking services directly to the consumers
(c) Collection of large number of dividend warrants
(d) Providing services to the employees of large organisations - In order to control credit in the country, the RBI may
(a) Buy securities in the open market
(b) Sell securities in the open market
(c) Reduce CRR
(d) Reduce SLR - Non-performing assets of a bank refer to the
(a) Assets which are not backed by collateral
(b) Deposits not paid back to customers
(c) Lendings not recovered
(d) Interest and loans outstanding and over due for long time - Excise duty is to be levied on
(a) Import of goods
(b) Export of goods
(c) Production of goods
(d) Sale of goods - The importer cannot take delivery of goods unless he produces the
(a) Bill of sight
(b) Bill of lading
(c) Shipping bill
(d) Certificate of origin - Find the odd man out
(a) IMF
(b) IFC
(c) World Bank
(d) RBI - Foreign Exchange and Foreign Currencies in India are governed by
(a) SCRA Act
(b) Banking Regulation Act
(c) FEMA
(d) SEBI Act - Match the following :
List – I List – II a. WTO i. Provides loans to address short-term balance of payments problems b. RBI ii. Multilateral trade negotiating body c. IMF iii. Facilitating lending and borrowing for reconstruction and development d. IBRD iv. Central Bank of India Codes :
a b c d
(a) ii iv i iii
(b) iv iii ii i
(c) ii iii iv i
(d) i ii iii ivAnswer Key
1 (b) 2 (d) 3 (a) 4 (c) 5 (b) 6 (c) 7 (c) 8 (b) 9 (c) 10 (a) 11 (d) 12 (a) 13 (c) 14 (b) 15 (c) 16 (a) 17 (b) 18 (c) 19 (c) 20 (b) 21 (c) 22 (d) 23 (d) 24 (c) 25 (c) 26 (c) 27 (a) 28 (b) 29 (a) 30 (b) 31 (b) 32 (d) 33 (a) 34 (d) 35 (c) 36 (c) 37 (c) 38 (c) 39 (c) 40 (b) 41 (a) 42 (c) 43 (b) 44 (a) 45 (d) 46 (c) 47 (b) 48 (d) 49 (c) 50 (a)