1. The term Opportunity Cost refers to
(A)
Variable Cost (B)
Short-run cost
(C)
The cost forgone in favour of production of another product
(D)
Cost related to an optimum level of production
2. If two commodities are complementary, then a rise in the price
of one commodity will induce
(A)
A rise in the price of the other commodity
(B)
An upward shift of demand curve
(C)
No shift in demand for the other commodity
(D)
A backward shift in demand for the other commodity
3. What is the characteristic of a purely competitive market ?
(A)
Large number of buyers and sellers (B)
A few sellers
(C)
A few buyers (D)
Abnormal profit
4. Willingness to pay minus actual payment is called
(A)
Consumer’s surplus (B)
Producer’s surplus
(C)
Utility cost (D)
Supplier’s surplus
5. Match List – I with List – II and select the correct answer
using the codes given below the lists
List
– I List
– II
a.
Cost Function 1.
Kinky Demand Curve
b.
Supply Function 2.
Isoquants
c.
Production Function 3.
Engineering Method
d.
Oligopoly 4.
Factor Prices
Codes : a b
c d
(A) 3 4 2
1
(B) 4 3 1
2
(C) 3 2 1
4
(D) 1 2 3
4
6. When analysing your business and its environment, it is
useful to carefully inspect
(A)
Threats (B)
Opportunities
(C)
Strengths and weaknesses (D)
All of the above
7. Which of the following is an example of an external threat ?
(A)
Decreased competition (B)
New Trade Regulations
(C)
Global Sales Potential (D)
Economies of Scale
8. Expectancy Theory of Motivation was propounded by
(A)
Porter and Lawler (B)
McGregor
(C)
Vroom (D)
J. Stacy Adams
9. Which one of the following is not a step in planning ?
(A)
Establishing objectives (B)
Developing premises
(C)
Determining alternative courses (D)
Identifying needs of employees
10. Planning is looking ahead and control is
(A)
Scanning environment (B)
Looking back
(C)
Setting targets (D)
Defining objectives
11. Human Resource Management (HRM) is a part of the broad Human
Resource Development (HRD) System, as this focus to
(A)
Selection, Induction, Training and Development
(B)
Operational and Organisational Options
(C)
(A) and (B) above
(D)
None of the above
12. Performance Appraisal is a double edged tool to
(A)
Create space for the employee to organisationally survive.
(B)
Offering challenges for promotion.
(C)
Accompanying the course of Demotion.
(D)
All of the above.
13. Wage determination is mostly done through tools which are
(A)
Objective (B)
Subjective
(C)
Both of (A) & (B) (D)
None of these
14. Job Evaluation criterion comes from
(A)
Job manual (B)
Job description
(C)
Job specification (D)
Job duration
15. Exit Policy primarily emphasises in the broad sense, for
policy makers as
(A)
Removing employees (B)
Down sizing
(C)
Retiring people and Rehabilitating them
(D)
Bringing new blood to the Corporate
16. The goal of financial management is to
(A)
Maximise the wealth of Preference Shareholders
(B)
Maximise the wealth of Debentureholders
(C)
Maximise the wealth of Equity shareholders
(D)
All of the above
17. The Internal Rate of Return (IRR) is determined where
(A)
the Net Present Value is positive (B)
the Net Present Value is negative
(C)
the Net Present Value is zero (D)
None of the above
18. The Tax shield would result in
i.
increase in tax liability ii. increase in EPS
iii.
decrease in EPS iv. decrease in tax liability
Codes :
(A)
(ii) and (iv) (B) (i) and (iii) (C) (i) and (iv) (D) (iii) and (iv)
19. Which of the following is a main method of issue of stocks ?
(A)
Vendor placing (B)
Public issue through Prospectus
(C)
Private placements (D)
None of the above
20. The Capital Asset Pricing Model (CAPM) establishes the
relationship between
(A)
Risk and EPS (B)
Risk and value of the firm
(C)
Risk and the required rate of return (D)
None of the above
21. ‘Marketing is a human activity directed at satisfying needs
and wants through Exchange process’; is the statement of
(A)
Cundiff ad Still (B)
Kenneth Andrews
(C)
Philip Kotler (D)
Kishwar S. Kan
22. Promotion mix includes
(A)
Advertising, publicity, personal selling and sales promotion
(B)
Physical attributes, brand, package and product life cycle
(C)
Brand name, product benefits, delivery and credit
(D)
Transportation, material handling, packaging and customer service
23. Which of the following is not the stage of product life
cycle ?
(A)
Introduction (B) Growth
(C)
Market segmentation (D) Decline
24. Which is the basic form of Innovation ?
(A)
Introduction of novel production process
(B)
Improvement and development of existing process
(C)
Improvement and development of existing firm
(D)
All of the above
25. The scientific system of collecting and analysis of data
pertaining to market is known as
(A)
Production Research (B)
Advertising Research
(C)
Marketing Research (D)
None of the above
26. Which one of the following is not the function of Production
Management ?
(A)
Production, Planning and Control (B)
Procurement of Raw Materials
(C)
Market Intelligence and Survey (D)
Plant Location and Layout
27. Time study refers to
(A)
Developing a standard time to do a particular task
(B)
Improving work methods
(C)
Value analysis
(D)
Value engineering
28. Acceptance Quality level is
(A)
Maximum number of defectives that the consumers will accept
(B)
Fraction defective(s) that the consumer considers acceptable
(C)
Fraction defective(s) that the producer considers acceptable
(D)
Maximum number of defectives that the producer will allow
29. In a transportation problem involving 10 origins and 5
destinations, the number of constraints representing origin capacity and
destination requirements is equal to
(A)
50 (B)
49 (C) 15 (D) 14
30. The critical path of a network is
(A)
for which earliest start time and latest start time are same
(B)
the shortest time path through a network
(C)
for which earliest finish time and latest finish time are same
(D)
the longest time path through a network
31. If a person buys one ticket of a State lottery, then the
probability that he wins a price is 0.11. If a person buys one ticket each
month for five months, what is the probability that he will win least one price?
(A)
0.55 (B) 0.50 (C) 0.44 (D) 0.56
32. The standard error of the mean of a random sample of size
two or more.
(A)
Always exceeds the population standard deviation.
(B)
Either exceeds or equals the population standard deviation.
(C)
Is always lower than the population standard deviation
(D)
Is always equal to the population standard deviation.
33. A store manager is trying to explore the relationship
between percentage fat content (Y) and price (X) of various dairy products. He
finds that the coefficient of determination is 0.4624 and the estimated
regression line is Y = 0.5 – 0.02 X. The coefficient of correlation would be
(A)
0.68 (B) – 0.68 (C) – 0.02 (D) 0.4624
34. Which of the following statement on testing of hypothesis is
always true ?
(A)
When the null hypothesis is rejected at 5%, it is always rejected at 1% level
of significance.
(B)
When the null hypothesis is rejected at 1%, it is also rejected at 5% level of significance.
(C)
When the null hypothesis is not rejected at 1%, it is rejected at 5% level of
significance.
(D)
No definite assertion can be made.
35. Which of the following devices would be considered a typical
sequential access medium ?
(A)
Magnetic Hard Disk (B)
Magnetic Floppy Disk
(C)
Magnetic Tape (D)
CD ROM
36. What describes the market, product and technological areas
of business ?
(A)
BCG Matrix (B)
GE Nine Cell Matrix
(C)
7’s framework (D)
Company’s Mission
37. Name the factors taken into consideration in Internal
Analysis
(A)
Firm Resources (B)
Objective, plans and policies of the firm
(C)
The type of business involved (D) All
of the above
38. Diversification is to a new business area that has no
obvious connection with any of the company’s existing areas refer to
(A)
Forward integration (B)
Backward integration
(C)
Conglomerate diversification (D)
Concentric diversification
39. Which business unit generates substantial cash surplus due
to low industry growth rate and high profit share ?
(A)
Dog (B)
Cash cow
(C)
Question mark (D)
Star
40. Who plays an important role in the success of products and
services and in increasing the marketing share of the firm in business ?
(A)
Functional level Managers (B)
Corporate level Managers
(C)
Business level Managers (D)
All of the above
41. Entrepreneurship as a theory of business was propounded by
(A)
Douglas McGregor (B)
Thomas A. Coleman
(C)
Joseph A. Schumpeter (D)
Adam Smith
42. Policies related to Revival of Sick Units are framed by
(A)
IIFT (B) CSIR (C) SEBI (D) MSME
43. The book ‘Innovation and Entrepreneurship’ is written by
(A)
Harold Koontz (B)
Blake and Mouton
(C)
Peter F. Drucker (D)
None of the above
44. State Financial Corporation Act encourages in
(A)
Establishing Industrial Estates (B)
Establishing small and medium size industries
(C)
Establishing Agricultural Farms (D) All
of the above
45. Name the Author of Equity Theory of Motivation.
(A)
Blake & Mouton (B)
Strube & Garcia
(C)
Stancy Adams (D)
Albert Bandura
46. Anything dealing with Ethics in Business is
(A)
good, bad or both, to the business gains
(B)
not related to religion
(C)
not to focus obligation
(D)
killing all types of Unfair Trade Practices
47. Ethics provide
(A)
Consumer Autonomy (B)
CSR
(C)
Justice (D)
All of the above
48. Company seeking ethical standard must purport to
(A)
Good Employee Relation (B)
Better Production Portfolio
(C)
Economy of Scale (D)
Public Disclosure and Publishing
49. Which of the following is not the act of Corporate
Governance ?
(A)
Protecting the interest of shareholders
(B)
Protecting the interest of employees
(C)
Fudging of Accounts
(D)
Paying Taxes to the Government
50. Corporate Social Responsibility (CSR) is looked as the organized
network of making long economic and social relationship of the corporate with
the society. But a business of which type, as mentioned below, cannot afford
for it, at the first instance ?
(A)
Large Business (B)
Medium Business
(C)
Small Business (D)
A Business Start-up
ANSWER KEY PAPER - II 2012 - DEC
1
|
C
|
11
|
C
|
21
|
C
|
31
|
C
|
41
|
C
|
||||
2
|
D
|
12
|
D
|
22
|
A
|
32
|
C
|
42
|
X
|
||||
3
|
A
|
13
|
C
|
23
|
C
|
33
|
B
|
43
|
C
|
||||
4
|
A
|
14
|
C
|
24
|
D
|
34
|
B
|
44
|
B
|
||||
5
|
A
|
15
|
C
|
25
|
C
|
35
|
C
|
45
|
C
|
||||
6
|
D
|
16
|
C
|
26
|
C
|
36
|
D
|
46
|
A
|
||||
7
|
B
|
17
|
C
|
27
|
A
|
37
|
D
|
47
|
D
|
||||
8
|
C
|
18
|
A
|
28
|
B
|
38
|
C
|
48
|
D
|
||||
9
|
D
|
19
|
B
|
29
|
C
|
39
|
B
|
49
|
C
|
||||
10
|
B
|
20
|
C
|
30
|
D
|
40
|
D
|
50
|
D
|
