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Management
Paper II
Time Allowed : 75 Minutes]

[Maximum Marks : 100

Note : This Paper contains Fifty (50) multiple choice questions, each question
carrying Two (2) marks. Attempt All questions.

1.

3.

The most appropriate measure of a

Which of the following economists is

credited with developing Modern

countrys economic growth is its :

Monetary Economics ?
(A) GDP
(A) Adam Smith
(B) NDP
(B) J.B. Say
(C) NNP

(C) Milton Friedman

(D) Per capita real income

2.

(D) Marshall

If the demand for a commodity

4.

Through which of the following

is ........................., the entire burden

policies, do authorities maintain

of Indirect Tax will fall on the

control over the supply of money for

the realization of general economic

consumer.

objectives ?
(A) Relatively inelastic
(A) Fiscal Policy
(B) Perfectly inelastic

(B) Exim Policy

(C) Perfectly elastic

(C) Trade Policy

(D) Relatively elastic

(D) Monetary Policy

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5.

6.

Capital gains tax is the example

7.

Organizational commitment is an

of :

example of :

(A) Proportional Tax

(A) Job satisfaction

(B) Indirect Tax

(B) Work attitude

(C) Regressive Tax

(C) Personality

(D) Direct Tax

(D) Perception

Assistant Manager, after observing

8.

the style of conducting a meeting of

Group dynamics is the systematic

study of :

Senior Manager on number of

(A) the forces operating outside the

occasions started conducting the

organisation

meeting in similar manner is an

(B) the forces operating within the
example of :
group
(A) Classical conditioning
(C) the forces operating between
(B) Social learning

management and union

(C) Insight learning

(D) the forces operating between

(D) Operant conditioning

suppliers and customer

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9.

Participative leadership :

11. Human Resource Management is

(A) dictates the terms

primarily concerned with :

(B) asks for and uses suggestions

(A) Sales

from subordinates
(C) gives

free-hand

(B) Dimension of People

to

the

(C) External Environment

subordinates

(D) Internal Environment

(D) supports subordinates

12. Human Resource Planning is the

10. Conflict is a :

process of :

(A) Natural disagreement arising

(A) Managing people at work

between two people

(B) Stimulating people to work

(B) Disliking for each other

effectively

(C) Lack of understanding of one

(C) Getting maximum out of

party

employee

(D) Lack of understanding of the

(D) Demand and supply forecasting

problem

of manpower
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15. Management

13. By-product of Job Analysis are :

Programmes are required :

(A) Job Enrichment and Job

(A) to increase production

Evaluation
(B) Job

Description

Development

and

(B) to increase effectiveness and

Job

personality of a manager

Specification

(C) to increase morale

(C) Job Rotation and Job Transfer
(D) to increase team work
(D) Job Satisfaction and Job
16. Green shoe option refers to :

Specification

(A) Options issued by a company

14. The training analysis is required
engaged in shoe business
to :
(B) Options issued by company
(A) Find out the training needs
engaged in green marketing
(B) Find out additional requirement
(C) Option of allocating shares in
of manpower

excess of shares included in

(C) Find out working problems

public issue
(D) Option of issuing debentures in

(D) Maintain industrial democracy

place of equity

at work
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17. Which of the following statement

19. Which of the following statement is

is true ?
(A) The

true ?
degree

of

operating

(A) Retained earnings do not have

leverage is a measure of

explicit cost, they carry implicit

financial risk

cost

(B) The degree of financial leverage

(B) Cost of debt is higher than cost

is a measure of business risk

of equity

(C) The EBIT level at which the

(C) Beta

EPS is the same for two

is

measure

of

unsystematic risk

alternative financial plans is

(D) The higher the corporate tax

known as the financial break-

rate, the higher is the cost of

even point

debt

(D) At financial break-even point,

20. Which of the following assumption

EPS is zero

is not true in respect of Gordons

18. While comparing risk involved in

Model ?

two capital budgeting projects with

(A) All investments are financed by

different initial outlays, the suitable

measure is :

either equity or retained

(A) Standard deviation

earnings

(B) Co-efficient of variation

(B) The firm has perpetual life

(C) Co-efficient of correlation

(C) Growth rate [g = br] is constant

(D) Beta

(D) br > ke
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21. Which of the following is not true

23. Which of the following is not a

for vertical marketing system ?

generic strategy as given by Michael

(A) Improves operating efficiency

Porter ?

(B) Each function is performed at

(A) Overall cost leadership

the most advantageous position

in the channel

(B) Focus

(C) Stresses the independence of

(C) Line Pruning

individual members
(D) Differentiation

(D) Is a tightly co-ordinated

distribution channel

24. When we practice ........................., we

22. Mr. X and Mr. Y both own woollen

arrange for a product to occupy

sweaters and are currently shopping

a clear, distinctive and desirable

for two more sweaters. They both

place relative to competing products

have earlier prices in mind when

in the minds of target consumers.

shopping for new ones. These prices

are termed as :

(A) Positioning

(A) Psychological prices

(B) Target segmenting
(B) Reference prices
(C) Re-positioning

(C) Price points

(D) Product distribution

(D) Skimmed prices

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25. An organization with a ........................

27. Shadow prices of economic resources

orientation assumes that the

are given by :

customers will resist purchasing

(A) Optimal solution of Dual
products not deemed essential.
(B) Optimal solution of Primal
(A) Production concept
(C) Intermediate solution of Dual
(B) Marketing concept
(D) Intermediate

solution

of

(C) Societal concept

Primal
(D) Sales concept
28. Degeneracy in Linear Programming
26. Infeasibility in graphical solution
Simplex Solution is indicated by :
to Linear Programming Problem is
(A) Tie in the smallest positive ratio

caused by :
(A) Wrong objective function

(B) Tie in the largest Cj-Zj value

(B) Conflicting constraints

(C) No. of occupied cells is less than

m + n 1

(C) Absence of alternatives

(D) No. of occupied cells is more

(D) Absence of non-negativity

than m + n 1

constraints
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31. In order to find independence of

29. Markov Analysis is not applicable

two variables which are attributes,

to :
the following test is most appropriate
(A) Brand Switching

test :
(A) t test

(B) Brand Positioning

(B) Z test
(C) Maintenance Management
(C) F test
(D) Accounts Receivables

(D) Chi-square test

30. In a decision tree model, when the

32. In cluster sampling, the clusters are

so formed as :

result of taking a decision is

(A) The units in the cluster are as

uncertain, then the result is

homogeneous as possible
represented by :
(B) The units in the cluster are as
(A) A line

heterogeneous as possible
(C) The clusters are heterogeneous

(B) A triangle

among themselves
(C) A square
(D) Some stratification factor may
(D) A circle

be chosen
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33. If the value of r(Karl Pearsons

36. The mechanism whereby the

Correlation Coefficient) is = 0.1

organization seeks to earn a profit

then :
by selling its goods is known as :
(A) Only byx must be ve
(A) Competitive advantage

(B) Only bxy must be ve

(C) Both byx and bxy must be ve

(B) Distinctive advantage

(D) Both byx and bxy must be +ve

(C) Business model

34. If

P(A)

0.6,

P(B)

0.3,
(D) Competitive competence

P(A B) = 0.2, then P(A/B) is :

37. Diversification mainly allows a firm

(A) 0.1

to :

(B) 0.333
(C) 0.50

(A) Concentrate

(D) 0.6607

on

single

business

35. Which of the following is not an

(B) Create excess resources

alternative hypothesis ?
(C) Use

its

resources

more

(A) H1 : m m0
effectively

(B) H1 : m > m0

(D) Send its directors on foreign

(C) H1 : m < m0

tours

(D) H1 : m = m0
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40. Global Entry Strategies are not

38. Divestment strategy is pursued

based on :

when :

(A) Capacity of the shipping-line

(A) The industry is flourishing
normally used by a company
(B) Many takeovers have already
(B) Import Policy of the foreign
taken place

country

(C) The industry is in decline stage

(C) Costs

of

manufacturing

products abroad

(D) R&D is not adequate

(D) Requirement of companys

39. Differentiated business firms are

products in foreign markets

vulnerable to :
41. The person who introduced the term
(A) Diversification by rivals
entrepreneur was :
(B) Regulatory changes

(A) Peter Drucker

(C) High costs of R&D

(B) J.S. Mill

(D) Low-cost competitors offering

(C) Richard Cantillon

(D) Schumpeter

similar products
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44. In case of SSIs, who said that small

42. Which is the key factor that

is beautiful ?
an entrepreneur should focus on,
in

ensuring

survival

of

(A) E.F. Schumacher

his

(B) Peter Drucker

enterprises ?

(C) Mahatma Gandhi

(D) Azim Premji

(A) Profits

45. The transformation of an idea into

(B) Cash flow

useful application is termed as :

(C) Margin

(A) Creativity
(B) Invention

(D) Market Share

(C) Innovation
43. The idea that, Extra-ordinary

(D) Syndication
46. Why should business be socially

individuals are the source of

responsible ?

entrepreneurial emergence, is put-

(A) To
forth by :

protect

customers

requirement
(B) To increase reputation of the

(A) McClelland

company
(B) Schumpeter

(C) To protect and serve public

interest

(C) Weber

(D) To
(D) Drucker

go

for

organisational

development
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47. Which of the practice will not

49. Dependability, predictability and

create an ethical culture in an

faith are the three elements that
organization ?
constitute :
(A) Visible role models from an
(A) Values

organization
(B) Clearly communicating ethical

(B) Moral principles

expectations
(C) Trust
(C) Provide ethical training
(D) Justice
(D) Punishing whistle blowers
50. Corporate governance is the key :

48. In which corporate governance

model do financial institutions have

(A) To the integrity of corporations

major say ?
(B) To increase profit
(A) American Model
(C) To motivate employees
(B) German Model
(D) To implement government

(C) Japanese Model

policies

(D) Indian Model

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ROUGH WORK

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ROUGH WORK

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