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UGC NET Dec 2013 Management paper III solved

1. Match the items of List – I with those of List – II and give the correct code from the
following :
List – I

List – II

a. Sales Maximisation Model
b. Managerial Discretion Model
c. Integrative Model
d. Behavioural Model

i. John Williamson
ii. R.M. Cyert and J.G. March
iii. William J. Baumol
iv. Oliver Williamson

Codes :
a
(A) ii
(B) iii
(C) i
(D) iv

b
iii
iv
ii
i

c
iv
i
iii
ii

d
i
ii
iv
iii

Answer B
2. Match the items of the following two lists and give the correct code for the following :
List – I
a. Scale of Preferences
b. Inadequate Explanation of Giffen Goods
c. Curves always slope negatively
d. Inseparation of Income and Substitution effects
Codes :
a
(A) ii
(B) i
(C) ii
(D) iii

b c d
i iii iv
iii iv ii
iv i iii
ii iv i

Answer C
3. Cost-plus pricing is not suitable for

List – II
i. Indifference Curves
ii. Ordinal Utility
iii. Demand Curves
iv. Marshallian Utility Analysis

(A) Monopoly Pricing
(B) Product Tailoring
(C) Refusal Pricing
(D) Monopsony Pricing
Answer A
4. Indicate the correct code matching the items of List – I with those in List – II as follows :
List – I

List – II

a. Resorting to New Technology
expansion
b. Excess Capacity of the Plant
expansion
c. Employees’ Training Centres
d. Reserve Capacity of the Plant

i. Cost reduction through output
ii. Constant cost despite output
iii. Internal Economies
iv. External Economies

Codes :
a
b
c
(A) i iii ii
(B) iii i
iv
(C) iv ii i
(D) ii iv iii

d
iv
ii
iii
i

Answer B
5. In a mixed economy, the central problems are solved through which of following ?
(A) Price mechanism
(B) Regulated market mechanism
(C) Market mechanism and economic planning
(D) Economic planning and control
Answer C
6. Indicate the correct code matching the items in List – I with those in List – II as follows :
List – I
a. Excess of aggregate investment over
aggregate savings, at full employment level
b. Equality of aggregate income
and savings
c. Comparatively greater decrease in

List – II
i. Stability of National Income
ii. Recessionary gap
iii. Multiplier effect

why. Indicate the one role which is not among them. Inflationary gap Codes : a b c (A) ii iv i (B) iv i iii (C) iii ii iv (D) i iii ii d iii ii i iv Answer B 7. Aggregate expenditure being less than national income at full employment level iv. The Ringlemann effect describes (A) the tendency of groups to make risky decisions . The study of gestures and body postures for their impact on communication is known as : (A) Kinesics (B) Proximics (C) Semantics (D) Informal channels Answer A 8.income following a decrease in investment d. when and how” tasks to be performed ? (A) Job Analysis (B) Job Description (C) Job Specification (D) Job Enrichment Answer B 9. (A) Decisional (B) Informational (C) Interpersonal (D) Supervisory Answer D 10. Which of the following deals with “what. managers perform three roles. According to Henry Mintberg.

A form of learning through association that involves the manipulation of stimuli to influence behaviour b. and _______ among people at work. Operant conditioning iv. Classical conditioning Codes : a (A) i (B) iv (C) iii (D) iv b c ii iii iii ii iv i iii i d iv i ii ii Answer D 13.(B) social loafing (C) social facilitation (D) the satisfaction of members’ social needs Answer B 11. The process of controlling behaviour by manipulating its consequences c. Match the following and indicate the correct code : List – I List – II a. Which of the following techniques permits the complainant to remain anonymous ? (A) The exit interview (B) The gripe-box system (C) The opinion survey . Something that incites action d. gender. The term “workforce diversity” refers to differences in race. age. (A) social status (B) personal wealth (C) able-bodiedness (D) political preference Answer C 12. The administration of a consequence as a result of behaviour i. Reinforcement iii. Stimulus ii. ethnicity.

1947 (C) The Factories Act.(D) None of the above Answer B 14. That the authority rests solely with the management with no right to anyone to challenge is the basis of the (A) Pluralist Approach (B) Systems Approach (C) Unitary Approach (D) Social Action Approach Answer C 16. 1948 ? (A) Canteen (B) Crèches (C) First Aid (D) Drinking water Answer D like to know in detail? click here 17. 1946 (B) The Industrial Disputes Act. In which of the following methods grievances are ascertained at the time of employees quitting the organisation ? . A person who has ultimate control over the affairs of the factory under the Factories Act. Which of the following is not a welfare provision under the Factories Act. Which of the following Acts has a direct relevance for grievance handling practices ? (A) The Industrial Employment (Standing Order) Act. 1948 is called (A) Occupier (B) Manager (C) Chairman (D) Managing Director Answer A 18. 1948 (D) All of the above Answer D 15.

(A) The exit interview method (B) The gripe-box system (C) The open-door policy (D) Opinion surveys Answer A 19. The appropriate method to derive the growth rate according to Dividend. Which of the following are most closely interconnected ? (A) Leadership and organisation structure (B) Leadership and motivation (C) Leadership and planning (D) Leadership and performance appraisal Answer B 21.Growth Model for equity valuation is (A) Growth rate of sales over a period of time (B) Plough-back ratio multiplied with return-on-equity (C) Plough-back ratio multiplied with net profit margin (D) Growth rate of fixed assets over a period of time Answer B . (A) Collective Bargaining (B) Affirmation Action (C) Arbitration (D) Negotiation Answer C 22. _______ is defined as disputes between parties submitted and decided by a neutral third party. Redressal of employees’ grievances covers (A) positive attitude towards employees’ grievances and readiness to help (B) expediting machinery for resolving employees’ grievances (C) equitable salary system for all (D) both (A) and (B) Answer D 20.

The Modigliani & Miller Proposition – I d. The Pecking Order Theory Codes : a (A) i b iii c ii d iv i. The Net Income Approach b. The process of developing the frequency distribution of Net Present Value c. The value of the firm depends on the earnings and risk of its assets rather than the way the assets have been financed . Match the correct option for each of the following approaches of Capital structure theories : a. The market value of the firm is not affected by changes in the capital structure ii. Simulation Codes : a b (A) i ii (B) ii iv (C) iii iv (D) iv i c d iv iii i iii i ii ii iii Answer B 24. The technique used in examining the chances of Net Present Value being greater than zero d. The firms prefer to rely on internal accruals followed by debt finance and external finance iv. The technique used in examining the effect of change in one variable at a time b. The Net Operating Income Approach c. The technique used when investment at a future date is to be decided based on the probable outcome of previous investment List – II i. Decision tree iv. Match the items given in List – I and List – II and indicate the correct code : List – I a.23. Sensitivity Analysis iii. Hillier Model ii. Declining weighted-average cost of capital iii.

but Reason (R) is correct. Answer D 28. (B) Price per share increases as the dividend pay-out ratio increases. (B) Giving loans to countries for the purpose of economic development.(B) iv ii iii (C) ii i iv (D) iii iv i i iii ii Answer C 25. Reason (R) : The price of systematic risk is identical for all the participants in the financial market. Match the correct combination for Assertion and Reason as argued by Shapiro and Titman : Assertion (A) : Management decisions to insure or hedge asset appear at best neutral mutation. (A) Assertion (A) is correct. Situation with high investment in current assets ii. (C) Promoting stability in the exchange rates. (D) Promoting free mobility of capital across countries. (D) Both the Assertion (A) and the Reason (R) are correct. Situation with frequent production stoppages Codes : . Situation which stimulates sales iii. Which one of the following is not the major objectives of International Monetary Fund ? (A) Promoting co-operation among countries on international monetary issues. Answer B 27. (B) Assertion (A) is incorrect. but Reason (R) is incorrect. (C) Both the Assertion (A) and the Reason (R) are incorrect. (C) Price per share increases as the dividend pay-out ratio decreases. Under the Walter Model. (D) None of the above. if the rate of return is greater than the cost of capital : (A) Price per share does not vary with the increase or decrease in dividend pay-out ratio. Answer C 26. Conservative policy of working capital refers to i.

Conglomerate Merger ii. 2.” 4. (C) i is correct.(A) iii is correct. Match the following and indicate the correct code : a. 3. The consumer buying decision will involve the same stages regardless of whether the goods involved are low or high involvement. (B) ii is correct. Vertical Merger Codes : a (A) i (B) ii (C) iii (D) iii b ii iii i ii c iii i ii i Answer B 31. Mergers resulting into economies achieved primarily by eliminating the duplicate facilities b. The ultimate goal of a customer-oriented organisation is to maximise its customer’s satisfaction. (D) i and ii are correct. Consider the following statements : 1. Usually people from the same culture. “Salesmen are born. social class and occupation have the same life style. Answer D 29. . Horizontal Merger iii. DUPONT analysis refers to (A) Earning Per Share = (Net Profit / Number of Equity Shares) (B) Return on Assets = Net Profit Margin Total Assets Turnover Ratio (C) Total Assets Turnover Ratio = Sales Average Total Assets (D) None of the above Answer D 30. not made. Mergers resulting into expansion of company’s business towards ultimate consumer or source of raw material c. Mergers in unrelated line of business i.

Indicate the correct answer through the codes. ii. Codes : (A) All the above statements are false. Codes : (A) All the statements are true. Answer B 34. Brand equity is a function of brand awareness and brand preference. 1977 provide for the labelling rules relating to packaged commodities. (C) Statement 3 is true. Answer D 32. Cognitive dissonance is associated with which stage of the consumer buying decision process ? (A) Need recognition (B) Information search (C) Evaluation of alternative (D) None of the above Answer D 33. iii and iv are true. Consider the following statements : i. (B) Only iii is true. others are true. iii. Indicate the correct answer. A marketer developing a brand name that is easy to pronounce would conduct : (A) An association test (B) A memory test (C) A preference test (D) A recall test . (D) All are false. AIDA Model is relevant to advertising as well as physical distribution. Product lines tend to shorten over time. others are false. (C) i. iv. (D) Only i is true. The Standards of Weights and Measures (Packaged Commodities) Rules. (B) Statements 1 and 2 are false.

(A) Territorial (B) Matrix (C) Product (D) Market Answer D 39. Which of the following is/are a type(s) of direct marketing ? (A) Direct-Response Advertising (B) Personal Selling (C) Telemarketing . A manufacturer of industrial goods would use ______ sales force structure. a company should be engaged in (A) Idea screening (B) Product development (C) Marketing strategy development (D) Product positioning Answer C 36. In the social-cultural arena. Relationship marketing aims at building mutually satisfying longterm relations with (A) Customers (B) Employees (C) Marketing partners (D) All of the above Answer D 37.Answer D 35. Before performing the business analysis for developing a new product. marketers may not understand (A) People’s views (B) Organisation’s views (C) Society’s views (D) Government’s views Answer D 38.

Assume that the inter-arrival time follows an exponential distribution and the service distribution is also an exponential with an average of 36 minutes.(D) All of the above Answer D 40. The number of allocated cells in the optimal solution of a transportation problem having m rows and n columns is : (A) m + n – 1 (B) m + n – 1 or less (C) m + n + 1 (D) None of the above Answer A 42. In inventory control. The probability that the size of the queue exceeds 10 is (A) 0. a non-basic variable has zero value in the Cj – Zj row. If in the optimal solution of a linear programming problem. In a railway yard. but not (C) Answer B . the problem (A) has no feasible solution (B) has multiple optimal solutions (C) is unbounded (D) (A) and (B). goods trains arrive at a rate of 30 trains per day. which one of the following factors does not affect the ROL (ReOrder-Level) ? (A) Average Daily Usage (B) Lead Time (C) Safety Stock (D) Holding Costs Answer D 41.750 (C) 0.250 (D) 0.944 (B) 0.056 Answer D 43.

Statement II : One reason that decision-makers at high levels often use subjective probabilities is that they are concerned with unique situations. which of the following will express the regression equation of Y on X ? __ __ (A) (X – X) = r (σX/σY) (Y – Y) __ __ (B) (X –X) = r (σY/σX) (Y –Y) __ __ (C) (Y –Y) = r (σY/σX) (X –X) __ __ (D) (Y –Y) = r (σX/σY) (X –X) Answer C 47. but II is correct. Answer D 46. Read the following statements and indicate the correct code from given below : Statement I : A subjective probability may be nothing more than an educated guess. Assuming ‘X’ as the ‘quantity of rainfall’ and ‘Y’ as the ‘agricultural yield’. (C) Statement I is wrong. but II is wrong. Statement – II : The lower control limit on an R chart is always –R – (1 – 3d3/d2). (D) Both Statements I and II are wrong. but Statement II is wrong. (B) Statement I is correct. Statement – I : –X and R charts use the sample standard deviation to measure process variability. .44. The best model to compute the probability that a machine functioning well in one period will continue to function or will break down in the next period is (A) Delphi Model (B) Decision-tree Model (C) Multiplicative Model (D) Markov-Process Model Answer B&D 45. Codes : (A) Statement I is correct. Codes : (A) Both Statements I and II are correct.

(C) ii and iii only. but Statement II is correct. Which of the following is a step in performing analysis of variance ? i. iii and iv (C) only iii (D) i. Status inquiry system ii. Accounting system iv. Determine an estimate of population variance from among the sample means. (C) Both Statements I and II are correct. iii and iv Answer D 50. Determine the difference between expected and observed frequency for each class. (D) i. Metadata ii. Codes : (A) i and ii only. identify the decision-support systems : i. Answer C 48. (B) i and iii only. ii and iii (B) ii. Information system Codes : (A) i. ii and iii Answer A 49. Determine an estimate of population variance from within samples. (D) Both Statements I and II are wrong. Summarised data iv. Integration Programs iii. Which of the following are the components of data warehouses ? i. ii.(B) Statement I is wrong. Archives Codes : . iii. Data analysis system iii. From the following. ii.

iii and iv only (D) i. Nike and Reebok re-invented the athletic shoe industry. According to the BCG matrix. in the 1980’s. Defining iii. Interrogating Codes : (A) i. ii and iii only (B) i. iii. ii. Updating v. Converse is an example of (A) Cash Cow (B) Dog (C) Question mark (D) Star Answer C 53. i. v and iv (C) iii. and resources. Now Converse is a minor brand in a growth industry. The managerial process of developing and maintaining a viable fit between an organisation’s objectives. Data structuring iv. ii. iv and v (B) ii. i. Arrange the following stages involved in DBMS in proper sequence : i.(A) i. iii and iv Answer D 51. and its market opportunities is called (A) Establishing strategic business units (B) Market-oriented strategic planning (C) Market research (D) Portfolio analysis Answer B . iv and v Answer C 52. and Converse changed nothing. Creating ii. ii. Then. For years Converse had a major share in the athletic shoe market. iv and i (D) ii. v. iii and iv only (C) ii. skills. iii. iii.

54. When a cigarette manufacturing company drastically cuts price of a popular brand of its cigarettes. An entrepreneur who is neither willing to introduce new changes nor to adopt new methods is known as : (A) Adoptive Entrepreneur (B) Fabian Entrepreneur (C) Innovative Entrepreneur (D) Drone Entrepreneur . it is implementing a ______ strategy. Low cost. to increase its share in the competitive market. The word “Tactic” is the most likely to be associated with (A) Corporate strategy (B) Business strategy (C) Operational strategy (D) Behavioural strategy Answer C 56. and focused market are the examples of (A) Corporate strategy (B) Business strategy (C) Functional strategy (D) Behavioural strategy Answer B 55. A marketing effectiveness review is part of _______ control. (A) Annual Plan (B) Profitability (C) Proficiency (D) Strategic Answer D 57. (A) Integrative growth (B) Market development (C) Market penetration (D) Product development Answer C 58. product differentiation.

(B) Term Loan from bank is needed to pay dividends to shareholders on time. aid and foster the growth of small-scale industries in the country. which hinder women from participating in industrial activities. (C) provide consultancy and training to small entrepreneurs – both existing and prospective. Answer B 62. Responsibility towards employees c. Job security . Stock ii. (C) Permanent working capital is the amount a firm needs to produce goods and services at the lowest point of demand. Match the items in the two lists : List – I (Part of Social Responsibility) a. coordinate and monitor the policies and programmes for promotion and development of small scale industries. Safety of their investment iv. Quality product iii. (D) provide integrated administrative framework at the district level for promotion of small-scale industries in rural areas.Answer D 59. Small Industries Development Organisation (SIDO) has been set up to (A) promote. UNIDO preparatory meeting on the “Role of Women in Industrialisation in Developing Countries” held in February 1978. Responsibility towards owners b. Answer B 61. Responsibility towards customers List – II (Features) i. (B) formulate. Which of the following statements is false ? (A) Venture capital is outside equity that comes from professionally managed pools of investor money. The meeting was held at (A) Vienna (B) New Delhi (C) Geneva (D) Mexico City Answer A 60. Responsibility towards depositors d. (D) Temporary working capital is the amount which a firm may need to meet seasonal demand. Identified constraints.

First industrial estate in India was established by SSIB in 1955 at (A) Okhla in Delhi (B) Ghaziabad in Uttar Pradesh (C) Rajkot in Gujarat (D) Sannat Nagar in Jammu & Kashmir Answer C 64. (B) While items 1 and 2 are true. 2. It emphasises on self reputation and stringent penalties on professionals. The Companies Bill. general counsellor or vice president) who is expected to provide strategies for ensuring ethical conduct throughout the organization is known as (A) Ethics Manager (B) Ethics Officer (C) Ethics Controller (D) Ethics Counsellor . What is not true about this Bill ? 1.v. It provides for measures to curb corporate frauds.g. the rest are not. Answer C 65. the rest are not. Codes : (A) All of the above are true. 2013. 4. It does not provide for corporate social responsibility. Interest Codes : a b (A) i iii (B) iii iv (C) i iii (D) iii iv c ii v v ii d v ii ii i Answer B 63. 2012 has been passed by Parliament in August. A high ranking organizational official (e. (C) While items 2 and 4 are true. It does not include the concept of corporate fraud. (D) All of the above are false. 3.

Answer B 66. Reason (R) : The ethical resolution should be based as far as possible on a cognitive ethical principle with justification. (R) is incorrect. According to which committee should an organization submit regular social reports ? (A) Sachchar Committee (B) Kumarmangalam Birla Report (C) Both of above (D) None of above Answer A 68. (A) is incorrect. The method of collecting money for Corporate Social Responsibility (CSR) by raising prices or following many other unethical ways is often described as : (A) Reverse effect (B) Reverse Robinhood effect (C) Boomerang (D) Roosevelt effect Answer B 69. it is known as (A) Polycentric Orientation (B) Regiocentric Orientation (C) Ethnocentric Orientation (D) Geocentric Orientation . (D) Both the statements (A) and (R) are incorrect. Indicate the correct code for the following statements about Assertion (A) and Reason (R) : Assertion (A) : All ethical theories are not equally applicable every time in all types of ethical dilemma resolution. Codes : (A) (A) is correct. (C) Both the statements (A) and (R) are correct. When the values and priorities of the parent organization guides the strategic decision making of all its international operations. (B) (R) is correct. Answer C 67.

Codes : (A) (A) and (R) both are correct. Arbitration Panel Codes : (A) iii i ii iv v (B) v iv iii ii i . Answer D 71. (iii) and (iv) only Answer C 72. (iii) and (iv) only (D) (ii). Indicate the correct code for the following two statements of Assertion and Reason : Assertion (A) : GDP increases a currency’s value. Arrange the following steps of Dispute Settlement Mechanism under the WTO in the systematic order : i. Consultations iv. The salient features of India’s Foreign Trade Policy are : i. (B) (A) and (R) both are correct and (R) is the right explanation of (A). iv. (ii). (D) Both (A) and (R) are not correct. Panel Proceedings ii. but (R) is not the appropriate explanation of (A). Rationalizing defence-related imports. but (R) is not correct. (ii) and (iii) only (C) (i). (iii) and (iv) (B) (i). Reason (R) : Since there is likely to be greater demand for country’s currency. Focus on labour-intensive sectors. Compliance Panel v. Reducing the interest burden and extension of the interest subvention scheme. ii. (C) (A) is correct. Appellate Body iii. iii. Codes : (A) All (i).Answer C 70. Extension of zero-duty EPCG scheme.

(C) iv ii iii v i (D) i ii iii iv v Answer A 73. Which of the following schemes is not a part of India’s Foreign Trade Policy 2009-14 ? (A) DFIA (Duty-Free Import Authorization) (B) TFITES (Tax-Free IT Export Scheme) (C) VKGUY (Vishesh Krishi and Gram Udyog Yojana) (D) FMS (Focus-Market Scheme) Answer B 74. Direct Investment . (D) (A) and (R) both are incorrect. but (R) is not the right explanation of (A). Reasoning (R) : The Global Managers must be in line with global opportunities and constraints. Export House d. Exports ii. Match the following in the context of International Market Entry and indicate the correct code : List – I a. Acquisition c. ceiling price and optimum price. Answer C 75. and (R) is the right explanation of (A). Contractual Entry iv. but (R) is not the right explanation of (A). (B) (A) and (R) both are correct. Indirect Exports iii. Indicate correct code for the following statements of Assertion (A) and Reasoning (R) : Assertion (A) : The Global Managers must develop systems and policies that address floor price. (C) (A) and (R) both are correct. Codes : (A) (A) is correct. Assembly b. Commission Agent Codes : a b (A) ii iv (B) iv iii (C) i ii (D) iv ii c i ii iii iii d ii i iv i List – II i.

Answer A .