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How to use this eBook


This eBook has 3 Sections.

Section 1: section-1 of this eBook contains Topic wise questions from previous
year papers grouped together

Topic wise total questions details is given below:

S.No Topic Total number of


questions in this eBook
1 Managerial Economics 94
2 Organizational Behavior 91
3 Human Resource Management 92
4 Financial Management 92
5 Marketing 99
6 Production Management 86
7 Advance Statistics and MIS 93
8 Corporate Strategy 88
9 Entrepreneurship and Small Business 87
10 Business Ethics and Management System 86
TOTAL = 908

The answers to the questions are given in red or green color. This section will
give you an idea about how questions come from each Topic. You can take
Print out as answers are marked ticked also.

Section 2: This section of eBook contains full length year wise questions with
answer. You can practice full length paper here. You can take Print out as
answers are marked ticked also.

Section 3: This section has full length papers without answers for your practice.
You can take print out and practice and check how much marks your score in
each paper.

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INDEX
SECTION 1:
Topic Page Number
Managerial Economics 10-33
Organizational Behavior 34- 55
Human Resource Management 56- 78
Financial Management 79- 104
Marketing 105- 128
Production Management 129- 149
Research Methodology ( Statistics ) 150- 174
Corporate Strategy 175- 200
Entrepreneurship and Small Business 201- 222
Business Ethics and Management System 223- 247

SECTION 2:
TOPIC PAGE NUMBER
SOLVED PAPER2 NOVEMBER 2017 249- 264
SOLVED PAPER2 JANUARY 2017 265- 279
SOLVED PAPER2 JULY 2016 280- 295
SOLVED PAPER2 DECEMBER 2015 296- 311
SOLVED PAPER2 JUNE 2015 312- 322
SOLVED PAPER2 DECEMBER 2014 323- 336
SOLVED PAPER2 JUNE 2014 337 – 350
SOLVED PAPER2 DECEMBER 2013 351- 363
SOLVED PAPER2 SEPTEMBER 2013 364- 379
SOLVED PAPER2 JUNE 2013 380– 395
SOLVED PAPER2 DECEMBER 2012 396- 406
SOLVED PAPER2 JUNE 2012 407- 418
SOLVED PAPER2 DECEMBER 2011 419– 432
SOLVED PAPER2 JUNE 2011 433- 446
SOLVED PAPER2 DECEMBER 2010 447- 458
SOLVED PAPER2 JUNE 2010 459- 470
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SOLVED PAPER2 DECEMBER 2009 471- 479
SOLVED PAPER2 JUNE 2009 480- 488

SECTION 3:
TOPIC PAGE NUMBER
UNSOLVED PAPER2 NOVEMBER 2017 489- 504
UNSOLVED PAPER2 JANUARY 2017 505- 519
UNSOLVED PAPER2 JULY 2016 520- 535
UNSOLVED PAPER2 DECEMBER 2015 536- 550
UNSOLVED PAPER2 JUNE 2015 551- 560
UNSOLVED PAPER2 DECEMBER 2014 561- 573
UNSOLVED PAPER2 JUNE 2014 574- 586
UNSOLVED PAPER2 DECEMBER 2013 587- 598
UNSOLVED PAPER2 SEPTEMBER 2013 599- 613
UNSOLVED PAPER2 JUNE 2013 614- 628
UNSOLVED PAPER2 DECEMBER 2012 629- 639
UNSOLVED PAPER2 JUNE 2012 640- 650
UNSOLVED PAPER2 DECEMBER 2011 651- 663
UNSOLVED PAPER2 JUNE 2011 664- 676
UNSOLVED PAPER2 DECEMBER 2010 677- 688
UNSOLVED PAPER2 JUNE 2010 689- 700
UNSOLVED PAPER2 DECEMBER 2009 701- 708
UNSOLVED PAPER2 JUNE 2009 709- 716

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SYLLABUS
UNIVERSITY GRANTS COMMISSION
NET BUREAU
CODE NO. 17
Subject: Management (including Business
Administration, Management /
Marketing/Industrial Relations and Personnel
Management etc.)
Unit 1:-Managerial Economics
Managerial Economics – Demand Analysis, Production Function, Cost
output relations, Market Structures, Pricing theories, Advertising, Macro
Economics, National Income Concepts, Infrastructure- Management and
Policy, Business Environment, Capital Budgeting
Unit 2:-Organizational Behavior
The Concept and Significance of Organizational Behavior- Skills and Roles
in an Organization- Classical, Neo classical and Modern Theories of
Organizational Structure, Organizational Structure, Organizational
Design, Understanding and Understanding and Managing Group Behavior,
Processes, Inter- personal and Group Dynamics, Communication,
Leadership, Managing Change, Managing Conflicts, Organizational
Development.
Unit 3:-Human Resource Management
Concepts and Perspectives in HRM- HRM in Changing Environment,
Human Resource Planning, Objectives, Process and Techniques, Job
Analysis- Job Description, Selecting Human Resources Induction, Training
and Development, Exit Policy and Implications, Performance Appraisal
and Evaluation, Potential Assessment, Job Evaluation, Wage
Determination, Industrial Relations and Trade Unions, Dispute Resolution
and Grievance Management, Labor Welfare and Social Security Measures.

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Unit 4:-Financial Management

Financial Management Nature and Scope, Valuation Concepts and


Valuation of Securities, Capital Budgeting Decisions, Risk Analysis,
Capital Structure and Cost of capital, Dividend Policy, Determinants, Long
term and Short-term Financing Instruments, Mergers and Acquisitions

Unit 5:-Marketing

Marketing Environment and Environment Scanning Marketing


Information Systems and Marketing Research, Understanding Consumer
and Industrial Markets, Demand Measurements and Forecasting, Market
Segmentation, Targeting and Positioning, Product Decisions, Product Mix,
Product life Cycle, New Product Development, Branding and Packaging,
Pricing Methods and Strategies, Promotion Decisions, Promotion Mix,
Advertising, Personal Selling, Channel Management, Vertical Marketing
Systems, Evaluation and Control of Marketing Effort, Marketing of
Services, Customer Relationship Management, Uses of Internet as a
Marketing Medium- Other Related Issues Like Branding, Market
Development, Advertising and Retailing on the Net, New Issues in
Marketing

Unit 6:- Production Management

Role and Scope of Production Management:- Facility Location: Layout


Planning and Analysis , Production Planning and Control, Production
Process Analysis, Demand Forecasting for Operations, Determinants of
Product Mix, Production Scheduling, Work Measurement, Time and
Motion Study, Statistical Quality Control, Role and Scope of Operations
Research, Linear Programming, Sensitivity Analysis, Duality,
Transportation Model, Inventory Control, Queuing Theory, Decision
Theory, Markov Analysis, PERT/CPM.

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Unit 7:-Advance Statistics and MIS

Probability Theory Probability Distribution- Binomial, Poisson, Normal


and Exponential, Correlation and Regression Analysis, Sampling Theory,
Sampling Distributions, Tests of Hypothesis, Large and Small Samples, t, z
, F, Chi- square Tests, Use of Computers in Managerial Applications,
Technology Issues and Data Processing in Organizations, Information
Systems, MIS and Decision- making, System Analysis and Decision, Trends
in Information Technology, Internet and Internet based Applications,
Design.

Unit 8:-Corporate Strategy

Concept of Corporate Strategy Components of Strategy Formulation,


Ansoff‘s Growth Vector, BCG Model, Porter‘s Generic Strategies,
Competitor Analysis, Strategic Dimensions and Group Mapping, Industry
Analysis, Strategies in Industry Evolution, Fragmentation, Maturity and
Decline, Competitive Strategy and Corporate Strategy , Trans
nationalization of Word Economy, Managing Cultural Diversity, Diversity
Global Entry Strategies, Globalization of Financial System and Services,
Managing International Business, Competitive Advantage of Nations, RTF
and WTO.

Unit IX:- Entrepreneurship and Small Business


Concepts- Types, Characteristics Motivation, Competencies and its
Development and Development to be shifted from 8th Chapter and
Entrepreneurship, Small Business- Concept Government Policy for
Promotion of Small and Tiny Enterprises , Process of Business
Opportunity Identification, Detailed Business Plan Preparation, Managing
Small Enterprises, Planning for Growth; Sickness in Small Enterprises,
Rehabilitation of Sick Enterprises, Intrapreneurship ( Organizational
Entrepreneurship)

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Unit 10:-Business Ethics and Management System

Ethics and Management System Ethical Issues and Analysis in


Management, Value Based Organizations, Ethical Personal, Framework
for Ethical Choices, Pressure on Individual in Organizations, gender issues,
Ecological Consciousness, Environment Ethics: Social Responsibility of
Business, Corporate Governance and Ethics

8
SECTION-1
TOPIC WISE
QUESTIONS
WITH
ANSWERS
SUBSCRIBE MY YOUTUBE CHANNEL FOR LATEST
UPDATES.
https://www.youtube.com/ch
annel/UCeej8Zas0XJ-
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9
Unit 1:-Managerial Economics
Managerial Economics – Demand Analysis, Production Function, Cost output
relations, Market Structures, Pricing theories, Advertising, Macro Economics,
National Income Concepts, Infrastructure- Management and Policy, Business
Environment, Capital Budgeting
Questions from previous papers:

NOV 2017
Managerial economics is concerned with which combination of the following?

Investment Analysis and Decisions

Production Behavior and Cost Analysis

Input Reward Analysis and Decisions

Economic Environment Analysis

Code:

(1) (a), (b) and (c)

(2) (b), (c) and (d)

(3) (a), (b) and (d)

(4) (a), (c) and (d)

When P0 and P1 and Q0 and Q1 denote before and after change in the price and
quantity respectively and in both the situations, total outlay remains the same,
which of the following formulae give the similar value of the arc price -
elasticity of demand?

(a) Qo-Q1 X Po+ P1 ( b) Qo-Q1 XPo

Po-P1 Qo+Q1 Po-P1 Q1

(c) Qo-Q1 X Po (d) Qo-Q1 X P1 (e) Qo-Q1 X P1

Po-P1 Qo Po-Q1 Q1 Po-P1 Qo

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Code:

(1) (b), (c) and (e)

(2) (a), (b) and (e)

(3) (a), (c) and (e)

(4) (b), (c) and (d)

In case the producer‟s equilibrium shifts to a higher isoquant due to decrease in


price of aninput, the curve combining the successive equilibrium positions is
known as:

(1) Product Possibility Curve (2) Price Factor Curve

(3) Expansion Path (4) Product Line

Which one of the following statements is not correct?

Marginal cost declines at a faster rate as compared to the average cost.

Marginal cost rises at a faster rate as compared to the average cost.

Marginal cost equals average cost where average cost is minimum.

Average cost equals marginal cost where marginal cost is minimum.

Cost - Plus pricing is not suitable for:

(1) Product Tailoring (2) Profit Maximizing

(3) Monopsony Pricing (4) Public Utility Pricing

JAN 2017
Indicate the correct code for the scope of managerial economics from the
following:

Demand Analysis

Production and Cost Analysis

Pricing and Investment Decisions

Factor pricing Decisions

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Economic Environmental Analysis

Codes:

(1) a, b, c, d (2) b, c, d, e

(3) a, b, c, e (4) a, c, d, e

Price elasticity of demand for a product is measured by

(1) Ed = ΔQ × ΔP (2) Ed = ΔQ ÷ ΔP

Q P Q P

(3) Ed = ΔP × Q (4) Ed = ΔP ÷ ΔQ

ΔQ P P Q

(Where Ed = elasticity of demand, Q = Quantity, P = Price and Δ = represents


change)

Which one of the following will be the appropriate pricing strategy for a new
product expecting an expanding market?

(1) Monopoly pricing (2) Skimming pricing

(3) Penetrating pricing (4) Differential pricing

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

List – I List – II

Loss Leader a. Locational price differentials

Unchanged Pricingb. Products with high initial demands

Basing Point pricing c. Product line pricing

Skimming Pricing d. Oligopoly pricing

Codes:

i ii iii iv

abcd

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c d a b

dbac

cabd

In case the firm makes varying investments on the different investment projects,
the appropriate project evaluation technique would be, which one of the
following?

Average annual rate of return technique

Payback period technique

Net present value technique

Profitability index technique

JULY 2016
The following is the demand function: Q = 100 – 5P
What will be the point price elasticity of demand at price Rs10?
(1) 2.00 (2) 1.00
(3) 0.85 (4) 0.50
The short-run cost function of a firm is as under: TC =
200 + 5Q + 2Q2
What will be the level of output at which AC and MC will be equal?
(1) 20 (2) 15
(3) 10 (4) 5
Match the items of List – I with the items of List – II and select the code of
correct matching:
List – I List – II
Sales Revenue Maximization i. Williamson‟s Model

Maximization of a firm‟s growth rate ii. Cyert-March Hypothesis


Maximization of Managerial Utility function iii. Baumol‟s Theory
Satisficing behavior model iv. Marri‟s Theory

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Codes:
abcd
iii iv i ii
i ii iv iii
ii iii i iv
iv iii ii i
Assertion (A) : The perceived risk of operating a domestic firm in international
environment is much higher.
Reason (R) : The international environment is more volatile and the domestic
firm generally does not have full information about the environment.
Codes:
Both (A) and (R) are correct.
Both (A) and (R) are incorrect.
(A) is correct while (R) is incorrect.
(A) is incorrect while (R) is correct.
Statement – I: The accept-reject approach is adopted generally when a firm has
a large amount of funds to invest in several projects at the same time.
Statement – II: Both the NPV and the IRR methods of investment appraisal
are based on discounted cash flow approach.
Both the statements are correct.
Both the statements are incorrect.
Statement – I is correct while Statement – II is incorrect.
Statement – I is incorrect while Statement – II is correct.

DEC 2015

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Which one of the following assumptions is not related to consumer behavior
based on the cardinal utility approach?
Rationality
Diminishing marginal utility of money
Utility cardinally measurable
Maximization of satisfaction with limited money income
17. Statement 1:- A rectangular hyperbola shaped demand curve has uniform
slopes on all its points.
Statement 2:- If the price elasticity is equal to utility, the marginal revenue
corresponds on all its points.
Code:-
Both the statements are correct.
Both the statements are incorrect.
Statement 1 is correct while Statement 2 is incorrect
Statement 1 is incorrect while Statement 2 is correct
18. Match the items of List I with the items of List II and find the correct combination:
-
List I List II
(Market Structure) (Nature of Industry prevalent)
Perfect Competition (i) Aluminum and passenger cars
Oligopoly (ii) Public Utilities like Telephone and Electricity
Monopoly (iii) Manufacturing: T.V. Sets, Refrigerators
Monopolistic Competition (iv) Farm Products: Grains
Code:-
1. (i) (ii) (iii) (iv)
2. (iv) (i) (ii) (iii)

(iii) (iv) (i) (ii)

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(ii) (iii) (iv) (i)
19. Statement 1:- In general, the NPV and IRR methods lead to the same acceptance or
rejection decision when a single project is involved.
Statement 2: - The inconsistency in ranking of competing projects as per the
NPV and IRR methods lies in the implicit assumptions with regard to different
rates of returns on reinvestment of intermediate cash flows.
Code:-
Both the statements are correct.
Both the statements are incorrect.
Statement 1 is correct while Statement 2 is incorrect
Statement 1 is incorrect while Statement 2 is correct
Which one of the following is not covered in macro-economic?
Performance of the entire economy
Price and output determination of a commodity
Factors and forces of economic fluctuations
Monetary and fiscal policies

JUNE 2015
If the demand for using the Noida express way is given by: Q=
40,000-2500P
Where Q is the number of users (vehicles) and P is the amount of toll collected
per unit who uses the express way. In light of this information which of the
following is true:
At P=Rs 6 and Q=14,000; demand is price inelastic.
At P=Rs7 and Q=16,500; demand is unitary elastic.
At P=Rs4 and Q=9,500, demand is price elastic.
All of the above

If a 100% scale-efficient plant has 92% technical efficiency and 88.5%


allocative-efficiency, then its overall efficiency will be:

16
(1) 88.5% (2) 90.25% (3) 93.0% (4) 81.42%
The market share data for an industry, comprising five companies, is given
below:
Company Market Share(%)
A 35
B 25
C 18
D 12
E 10
This industry‘s three-firmHerfindahl-Hirschman index shall be:
(1) 0.234 (2) 0.217 (3) 0.151 (4) 0.0175
For economy which consists of single automobile maker and that in year 2014,
30,000 vehicles are produced with an average price of ` 5 lakh. For this
economy what would be the increase in the nominal GDP for 2015 compared
with 2014 with the 4% greater automobile production and 8% inflation.
(1) 4.0% (2) 12.0% (3) 6.0% (4) 12.32%
Demand policies targeted to reduce the unemployment become
ineffective in presence of the following:
Vertical Phillips curve
Money illusion and ignorance among workers
Horizontal Phillips curve
None of the above

DEC 2014
In the market-oriented system, for the allocation of resources which one of the
following is the most appropriate conveyor of information?
(A) Finance Ministry (B) Central Bank
(C) Market Price (D) Advertisement Expenditure

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A company supplies 20 units of a particular product per month, at a price of Rs
10 per unit. If price elasticity of supply is 5, how many units would the
company supply at a price of Rs15?
(A) 50 (B) 70
(C) 40 (D) 5
Which characteristic is not likely to be a part of perfect competition?
(A) Absence of interdependence (B) Deadweight loss is non-existent
(C) Strong rivalry (D) Absence of advertisement
Match the items given in List – I and List – II by considering which of the
following are macroeconomic issues and which microeconomic ones are:
List – I List – II
The level of government revenue i. Microeconomic
The rate of inflation ii. Macroeconomic
The price of T.V. set
The amount saved last year by households
Codes: -
abcd
ii i iii
ii i ii i
i ii iiii
ii ii i ii
In the recent years, world economy has witnessed the influence of
unconventional monetary policy of the U.S.A. This policy stance is known as
(A) Bank rate (B) Taylor rule
(C) Reserve requirement (D) Quantitative easing

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JUNE 2014
In case the price (P), quantity (Q), and changes (Δ) are represented by
respective symbols given in the brackets, the price elasticity of demand (Ed) is
measured by
Ed = ΔQ / PΔ
Ed = (QΔ/Q) / (PΔ/P)
Ed = ΔP/ΔQ
Ed = (ΔP/P) / (ΔQ/Q)
Law of Diminishing Return applies when the gaps among the successive
„multiple-level of output‟ isoquants
(A) Decreases(B) remains constant
(C) Increases (D) remains irregular
In case the demand elasticity under imperfect competition is unity, the marginal
revenue will be
more than utility, but less than infinity.
Equal to unity.
less than unity, but more than zero.
Equal to zero.
Rise in general price level along with declining output in the economy is called
(A) Inflation (B) Deflation
(C) Stagflation (D) Demand-pull inflation
National income equilibrium is not at the level where
Aggregate investment equals aggregate savings
Aggregate expenditure equals aggregate income
Inflationary and deflationarygaps are absent
Aggregate consumption is constant

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DEC 2013
The Marshallian utility analysis is based on a less valid assumption of
Cardinal measurement of utility
Constant marginal utility of money
Diminishing marginal utility of goods
Additivity of the utility
An appropriate pricing strategy for a new product to be introduced in the market
will be
Average/Marginal cost-plus pricing
Skimming/Penetrating pricing
Product-line pricing
Differential pricing
Economic capacity of a plant represents the firm‟s capability for
Maximum physical output
Maximum marginal output
Break-even level of output and sale
Output that equates average and marginal costs
Multi-stage approach to product pricing in a firm involves
considerations for setting the price as follows:
Selection of firm‟s objective
Composition of marketing-mix
Selection of target market
Selection of pricing policy and strategy
Indicate correct sequence:
iv → ii → i → iii
iii → i → ii → iv

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ii → iv → iii → i
i → iii → ii → iv
Which one of the following practices is not sought to be regulated under the
Consumer Protection Act, 1986?
Sales of defective goods
Supply of services having some deficiency
Misleading advertisements
Goods supplied free of charge

SEPT 2013
The sum of the value of all final goods and services produced within a country
and net factor income from abroad is termed as
(A) GNP (B) Nominal GDP
(C) NNP (D) Real GDP
If a firm raises Rs1,00,000 by the issue of debentures at 10%, repayable after 10
years, the rate of return that equates the present value of cash inflows with the
present value of cash outflows is referred to as
(A) Explicit cost (B) Implicit cost
(C) Specific cost (D) Future cost
The major objective of economists to monopolies is
Lack of technological progress in such industries.
The dangerous impact on democratic government.
The inability in an industry where there is a single producer.
The tendency to restrict output and charge higher price.
Statement I: Demand for a commodity refers to quantity of the commodity
demanded at a certain price during any particular period of time.
Statement II: Contraction of demand is the result of increase in the price of the
goods concerned.
Both I & II are correct.

21
Both I and II are incorrect.
I is correct and II is incorrect.
II is correct and I is incorrect.
Match the items given in List-I with most suitable options given in List- II.
List – I List – II
Rate of discount which equates
the net present value to zero. (i) Payback period
(b)Ratio of present value of cash
inflows to the cash outflow. (ii) Internal Rate of Return
(c) Percentage of annual net income
earnedon average fundinvested in aproject.(iii) ProfitabilityIndex
(d)Investment divided by annual net cash
inflow. (iv) Average Rate of Return
Codes:
(a) (b) (c) (d)
(iii) (ii) (iv) (i)
(iii) (ii) (i) (iv)
(ii) (iii) (iv) (i)
(ii) (iii) (i) (iv)

JUNE 2013
The hypothesis that „consumption in one period would be a function of income
in that period and the returns on savings of the previous period‟ is given by
(A) Irving Fisher (B) Franco Modigliani
(C) Duesenberry (D) Robert Hall
From the following identify one which is not a property of Indifference curve?
Indifference curves are downward sloping.
Indifference curves are concave to the origin.
Indifference curves are convex to the origin.

22
Indifference curves do not intersect each other.
Which one of the following statements is true?
Business decisions cannot be taken without a sound knowledge of Macro
Economic Theories.
Knowledge of Economic Theory is misleading in making business
decisions.
With the help of Economic Theories, it is always possible to predict the future
accurately.
Every Economic Theory is based on realistic facts which are common to all
societies.
Arrange the following in the proper order for decision under capital budgeting.
Estimating the cost and benefits of proposals.
Deciding the investment objective.
Selecting the best investment proposal.
Applying the capital budgeting decision technique.
Codes:
(ii) (iv) (i) (iii)
(ii) (iv) (iii) (i)
(ii) (i) (iv) (iii)
(ii) (i) (iii) (iv)
Match the following items in List – A with the most appropriate options from
List – B:
List-A List-B
A lender buys securities to protect himself from
a fallinginterest rate1. Interestrate collar
A borrower buys securities to protect himself
from rising interest rate 2. Interest rate cap
A combination of interest rate cap and floor 3. Interest rate
corridor

23
A combination of two or more interest rate caps 4. Interest rate floor
Codes:
a bcd
(A) 2 4 3 1
(B) 4 2 1 3
(C) 4 2 3 1
(D) 3 2 1 4

DEC 2012
The term Opportunity Cost refers to
Variable Cost
Short-run cost
The cost forgone in favor of production of another product
Cost related to an optimum level of production
If two commodities are complementary, then a rise in the price of one
commodity will induce
A rise in the price of the other commodity
An upward shift of demand curve
No shift in demand for the other commodity
A backward shift in demand for the other commodity
What is the characteristic of a purely competitive market?
Large number of buyers and sellers
A few sellers
A few buyers
Abnormal profit
Willingness to pay minus actual payment is called
Consumer‘s surplus
Producer‘s surplus

24
Utility cost
Supplier‘s surplus
Match List – I with List – II and select the correct answer using the codes given
below the lists:
List – I List – II
Cost Function 1. Kinky Demand
Curve
Supply Function 2. Isoquants
Production Function 3. Engineering Method
Oligopoly 4. Factor Prices
Codes:
abcd
(A) 3 4 2 1
(B) 4 3 1 2
(C) 3 2 1 4
(D) 1 2 3 4

JUNE 2012
Cardinal measure of utility is required in
Utility Theory
Indifference Curve Analysis
Revealed Preference
Inferior Goods
A Right-ward shift in Demand Curve indicates
A decrease in supply
An increase in quantity supplied
An increase in supply over the previous year
Law of Variable Proportions

25
Which of the following is the conditionfor equilibrium for Monopolist?
MR = MC
MC = AR
MR = MC = Price
AC = AR
Giffen goods are those goods
For which demand increases as price decreases
Whichare in short supply
Which have high elasticity of demand?
Which gives rise to a Cob-Web situation.
Match List-I with List-II and select the correct answer using the codes given
below the lists.
List – IList – II
(Demand Estimation Method) (Steps involved)
Customer Interview Method 1. Consumers Interview
Market Experiment Method 2. Time series or Cross Section
Data
Regression Method 3. Market Stimulation
Demand Forecasts 4. Market Experiments‘ Survey
Codes:
(a) (b) (c) (d)
(A) 1 3 4 2
(B) 1 3 2 4
(C) 2 4 3 1
(D) 4 2 1 3

DEC 2011
Consider a demand curve which takes the form of a straight-line cutting both
axes. Elasticity at the mid-point of the line would be
26
(A) 0 (B) 1.0
(C) 1.5 (D) 2.0
Price taker firms
Advertise to increase the demand for their product
Do not advertise, because most advertising is wasteful.
Do not advertise because they can sell as much as they want at the current price.
Who advertise will get more profits than those who do not.
Note:- Answer for the question is not given by UGC
OPEC is an example of the type of producer‟s organization known as a
Marketing Board
Producer‘s Co-operative
Trust
Cartel
Match the following:
List – I List – II
Responsiveness of demand to change in price 1. Income elasticity of demand
Responsiveness of demand to change in tastes 2. Price elasticity of demand
Responsiveness of demand to change in income 3. Cross elasticity of demand
Responsiveness of demand to change
in price of related goods 4. Taste elasticity of demand
Codes:
I II III IV
(A) 1 2 3 4
(B) 4 3 1 2
(C) 3 4 2 1

27
(D) 2 4 1 3
Opportunity costs are also known as
Spill-over costs
Money costs
Alternative costs
Sunk costs

JUNE 2011
In the case of an inferior commodity, the income elasticity of demand is
(A) Positive (B) Unitary
(C) Negative (D) Infinity
The slope of the iso-cost line is determined by
Prices of the two factors
Productivity of the two factors
Degree of substitutability of the two factors
None of these
Which one of the following statements is correct or more nearly correct?
An increase in the price of commodity represents a fall in its value
Value has nothing to do with the price
If the price of a commodityfalls, its value relative toother goods does not
change
The price of a good is its value measured in terms of money
The important macro-economic aggregates are
Aggregate Consumption
Gross Domestic Capital Formation
Gross Domestic Savings and GNP
All of the above

28
Match the following
List – I List – II
For a given 10 per cent change in price,
demand changes by zero per cent 1. e > 1
For a given 10 per cent change in price,
Demandchanges by 5 percent2. e = 1
For a given 10 per cent change in price
demand changes by 10 percent3. e < 1
For a given 10 per cent change in price,
Demandchanges by 20 percent4. e = 0
Code:
I II III IV
(A) 3 1 2 4
(B) 4 3 2 1
(C) 1 2 3 4
(D) 2 3 1 4

DEC 2010
Under perfect competition in the long run
All firms earn normal profits
Few firms earn super normal profits
All firms are at break even
None of the above
National Income at market prices is equal to
Gross national product at market prices
Gross domestic product at market prices
Net national product at factor cost
None of the above
If there is a single buyer, it is called
Monopoly

29
Oligopoly
Monopsony
None of the above
Under which of the following method the time value of money is not
considered?
Net present value method
Internal rate of return method
Payback period method
All of the above
A firm is having increasing returns to scale means
It is having increasing costs.
It is having constant costs.
It is having decreasing costs.
None of the above
Production can be measured in terms of which of the following?
Total productivity
Marginal productivity
Average productivity
All of the above
Note:- Answer for the question is not given by UGC

JUNE 2010
During last five years per capita income of India is increasing, that means
National income growth of India is more than growth of population.
Growth in population is more than the growth in National income of India.
National income of India & population of India have grown at the uniform rate.
All of the above

30
In the short run firm considers the minimum of its average variable cost curve
as
Break-even point
Shutdown point
Economies of scope
None of the above
The positive cross elasticity of demand between two products means
Two products are substitutes
Two products are complementary
Two products are neither substitutes nor complementary
None of the above
A monopolist always operates in the
Inelastic segment of its demand curve
Elastic segment of its demand curve
Unitary elastic segment of its demand curve
None of the above
The price elasticity of demand for any product in the long run
Is more than it‘s short run value.
Is less than its short run value.
is same as its short run value.
None of the above.
Earnings foregone in the context of the best alternative is termed as
Past cost
Historical cost
Opportunity cost
Sunk cost
Note:- Answer for the question is not given by UGC

31
DEC 2009
The elasticity of demand indicates
The rate of response of demand to a change in price.
The rate of change of demand to a change in income.
The change in the tastes of consumers at different prices.
The rate of response of demand to a change in supply.
A rightward shift in supply curve indicates
A decrease in supply
An increase in quantity demanded
An increase in supply
Law of variable proportion
Which of the following is the condition of equilibrium for the monopolist?
MR = MC (C) AR = MC = Price
MC = AR (D) AC = AR
If the demand curve is a rectangular hyperbola, elasticity is
1(C) infinity
0 (D)less than one
If both supply and demand increase by the same proportion,
Quantity remains constant(C) Price increases
Price remains constant (D) Quantity increases
What leads to rationing and black marketing under perfect
competition?
Price support(C) Decrease in supply
Excess demand (D) Price control

JUNE 2009
Price elasticity of demand is best defined as:

32
The change in the tastes of consumers at different prices
The rate of response of demand to a change in supply
The rate of response of demand to a change in price
The rate of change of demand to a change in price
Giffen goods are those goods:
For which demand increases as price increases
Which are in short supply
Which have high income elasticity of demand
Which give rise to a decrease in demand
The situation where the market consists of only two buyers, then it is called:
(A) Monopsony (B) Duopsony
(C) Monopoly (D) Duopoly
In India, which method is used to measure National Income in service sector?
Expenditure method (C) Output method
Income method (D) Value added method
Short run cost curves are influenced by:
Principles of return to scale(C)Law of variable proportion
Economies of scale (D) Diseconomies of scale
The term opportunity cost refers to:
Variable cost
Short run cost
Cost of one product in terms of production of others forgone
Cost related to an optimum level of production

33
Unit 2:- Organizational Behavior
The Concept and Significance of Organizational Behavior- Skills and Roles in
an Organization- Classical, Neo classical and Modern Theories of
Organizational Structure, Organizational Structure, Organizational Design,
Understanding and Understanding and Managing Group Behavior, Processes,
Inter- personal and Group Dynamics, Communication, Leadership, Managing
Change, Managing Conflicts, Organizational Development.

Nov 2017
Match the following and select the correct code of matching:
List - I List - II
F.W. Taylor (i) Fair day‘s pay for fair day‘s work
Henry L. Gantt (ii) Motion study
Frank and Lillian Gilbreth (iii) Graphic scheduling for planning and controlling
of work
Max Weber (iv) Bureaucratic organization
Code:
(a) (b) (c) (d)
(i) (ii) (iii) (iv)
(2) (i) (iii) (ii) (iv)
(iv) (iii) (ii) (i)
(iv) (i) (ii) (iii)
The achievement of goals with the least amount of resources is:
(1) Effectiveness (2) Efficiency (3) Productivity (4) Both (1) and (2)
Which one of the following is the fundamental rethinking and radical redesign
of business processes to achieve improvements in performance?
(1) Reengineering (2) Reorganizing
(3) Revisiting (4) Rescheduling
Match the following and select the code of correct matching:
List - I List - II

34
Motivating through rewards (i) Charismatic leadership and
penalties
Changing organization by creating (ii) Situational leadership and
communicating a vision
Influencing by dint of personality (iii) Transactional leadership and
charm
Modifying style with respect to (iv) Transformational leadership readiness of
followers
Code:
(a) (b) (c) (d)
(iii) (i) (ii) (iv)
(2) (iii) (iv) (i) (ii)
(iii) (iv) (ii) (i)
(iv) (iii) (ii) (i)
Which one of the following is not a „hygiene factor‟ of Herzberg‟s Two Factor
theory?
(1) Interpersonal relations (2) Working conditions
(3) Responsibility (4) Job security

JAN 2017
According to Henry Fayol, which one of the following combinations of qualities
are required in a manager?
Physical, mental, experience, educational and conceptual
Technical, human, conceptual, mental and moral
Physical, mental, moral, educational, technical and experience
Mental, moral, conceptual, educational, technical and experience
Neo-classical organization theory emphasizes on which one of the following?
Flat structure of organization
Tall structure of organization

35
Coordination by hierarchy
Unity of command
According to Graicuna‟s formula of span of management, if a superior has
three
Subordinates, what number of cross-relationships would be?
(1) three (2) six
(3) nine (4) eighteen
In Reddin‟s „Tridimensional Grid‟, which one of the following is a less effective
style of leadership?
(1) Developer (2) Missionary
(3) Executive (4) Bureaucrat
Assertion (A): Attribution theory is based on relationship between personal
perception and interpersonal behavior.
Reasoning (R): Since most „whys‟ are not directly observable, people must
depend
upon cognitions, particularly perception.
Codes:
(A) is right but (R) is wrong.
(A) is wrong but (R) is right.
Both (A) and (R) are right but (R) does not explain (A).
Both (A) and (R) are right and (R) explains (A).

JULY 2016
Which process is used by a person (perceiver) to deal with conflicting
messages, and conflicting data?
(1) Halo effect (2) The process of checking
(3) Perceptual defense (4) The process of reacting
Assertion (A): The physiological needs are essential for living but they are
determined by social environment.

36
Reasoning (R): These needs may be motivators in backward countries but in a
developed country, these needs are supposed to be satisfied, hence, they may
not be considered motivators.
Codes:
Assertion (A) and Reasoning (R), both are correct, but (R) is not right
explanation of (A).
Assertion (A) and Reasoning (R), both are correct, and (R) is correct
explanation of (A).
Assertion (A) is correct, whereas Reasoning (R) is incorrect.
Reasoning (R) is correct, whereas Assertion (A) is incorrect.
The basic emphasis of theory of organizational design is on
flat structure, decentralization and provision of informal organization.
(1) Neo-classical theory (2) Modern theory of systems approach
(3) Matrix organization theory (4) Classical theory
The result variables as the component of mathematical model for measuring
system‟s effectiveness and efficiency in management science include
(1) Measures of performance (2) Measures of effectiveness
(3) Payoffs and outcomes (4) All the above
Assertion (A): Reinforcement plays a central role in the learning process.
Reason (R): Reinforcement strengthens the response preceding it and induces
repetitions of the response.
Codes:
Both (A) and (R) are correct.
(A) is correct and (R) is the right explanation of (A).
(A) is correct but (R) is incorrect.
Both (A) and (R) are incorrect.

37
DEC 2015
Match the below mentioned aspects with their main behavioral disciplines:
AspectsBehavioral discipline
Leadership and stress management (i) Psychology
Group conflict management (ii) Anthropology
Cross-cultural analysis (iii) Sociology and Psychology
Power(iv) Political science
Codes:
a bcd
iv i ii iii
ii iii I iv
i iv ii iii
iv ii iii i
Theoperantconditioningorlearningapproachtobehaviorisbasedon
.

Lawofreinforcement(3)Lawofreproduction
Law of effect (4) Law of expectations

The principles by which the process of perceptual organization works was first
identified by Max Wertheimer in the year .
(1) 1918 (2) 1933 (3) 1924 (4) 1923
The leadership theory of describes that effective group
performance depends on the proper match between the leaders style if interacting with
his subordinates and the degree to which the situation gives control and influence to the
leader.
Iowa State Leadership Studies‘; Ronald Lippitt and Ralph K. White
Managerial Grid‘; Blake and Mouton
Trait Theory‘; Stodgill and Barnard
Contingency Model‘; Fred Fiedler

38
When one individual or group wins at the expense of another individual or group, it is
termed as .
Zero-sum conflict (3) Line-staff conflict
Non-zero sum conflict (4) Formal-informal conflict
JUNE 2015
An individual‟s involvement with, satisfaction and enthusiasm for, the work he does, is
known as:
Employee engagement (3) Job satisfaction
Job involvement (4) Organizational commitment
Which of the following is not perceived as the basic element of motivation?
(1) Direction (2) Intensity (3) Performance (4) Persistence
A theory of motivation that is concerned with the beneficial effects of intrinsic
motivation and the harmful effects of extrinsic motivation is termed as:
Cognitive Evaluation Theory (3) Self-determination Theory
Self-efficiency Theory(4)Two-factor Theory
Match the items of List I with those of List II.
List I List II
Behavioral science Contribution
Anthropology (i) Attitude change
Psychology (ii) Attitude measurement
Social psychology (iii) Conflict
Sociology (iv) Organizational culture
Codes:
(a) (b) (c) (d)

(i) (ii) (iii) (iv)

(2) (iv) (ii) (i) (iii)

(iv) (ii) (iii) (i)

(ii) (iv) (iii) (i)

39
A relatively stable set of characteristics that influence an individual‟s behavior is known
as:
(1) Attitude (2) Learning (3) Perception (4) Personality
DEC 2014
Rita, a young enthusiastic manager has joined an organization as a project coordinator.
The project head counsels her to socialize less with non-management employees;
whereas the product head tells her to learn more about market issues. She should
socialize more with the non-management employees. Rita is confused, she is facing
(A) Inter-role conflict (B) Intra-role conflict
(C) Interdepartmental conflict (D) Hierarchical conflict
List – I consists of Motivation theories and List – II consists of the Motivation theorists.
You have to match them and indicate the correct match as per code:
List – I List – II
Two-factor theory i. David McClelland
ERG theory ii. Fredrick Herzberg
Theory X and Theory Y iii. Douglas McGregor
Need theory iv. Clayton Alderfer
Codes:
abcd
ii iv iii I
i ii iii iv
i iv ii iii
iv iii ii i
The conflict over content and goals of the work is called
(A) Functional conflict (B) Process conflict
(C) Relationship conflict (D) Task conflict
theory of motivation ignores the inner state of the individual and concentrates
solely on what happens when he or she takes some action.
(A) Equity (B) Expectancy
(C) Goal-setting (D) Reinforcement

40
In the “Big Five” personality factors widely accepted personality traits are mentioned.
The trait of being dependable, organized, conforming and persevering on tasks is called
(A) Extroversion (B) Conscientiousness
(C) Agreeableness (D) Emotional stability
JUNE 2014
Which of the following is a correct match?
McClelland – ERG Theory
Skinner – Reinforcement Theory
Vroom – Equity Theory
Locke – ExpectancyTheory
The study of gestures and body postures for their impact on communication is known as
(A) Kinesics (B) Proxemics
(C) Semantics(D) None of the above
According to Organizational Culture Inventory (OCI), an organization in which
members are encouraged to work together in ways that meet higher order human needs
is classified as having a culture.
(A) Constructive (B) motivational
(C) Passive (D) high achievement
A matrix structure of organization
Reinforces unity of command
is inexpensive
is easy to explain to the employees
Gives to some employees more than one boss
Organizational development (OD) is a planned change plus
Evaluation
Intervention
Ability for self-renewal

41
Reinforcement
DEC 2013
The leadership prototype
is useful primarily for selection and training of employees
uses LPC (Least Preferred Co-worker) as an important component
depicts the image of a model leader
emphasizes leadership development
Which is not a perceptual process stage?
Attention/selection
Interpretation
Follow-through
Retrieval
Which statement is correct?
Goals act as the set of constraints that an organization must satisfy.
Deterministic goals specify the end or direction towards which the organization applies
its efforts, and they can be fairly determined.
Goals may be categorized as deterministic and constraint goals.
All of the above.
According to Fiedler‟s Contingency Model of Leadership, which one of the
following is not a situational variable?
Leader-Member relations
Task structure
Position power
Maturity of followers
Which is not a centralized communication network system?
Wheel Network
Y-shaped Network
Circle Network

42
Chain Network
SEPT 2013
The process through which individuals attempt to determine the causes behind others‟
behavior is known as
Perception
Attitude
Attribution
Social identity theory
Which theory of human motivation focuses on personal perceptions of the performance
process?
Adam‘s Theory of Inequality
McClelland‘s Need Theory
Vroom‘s Expectancy Theory
Alderfer‘s ERG Theory
Annual Reports, Balance Sheets, Brochures and Advertisements in
organizational communication are the means to aim at
Influencing
Image building
Group building
Credibility building
Match the following:

Attitudes 1. Beliefs that individuals possess certain characteristics because of their


membership in certain groups.

Job Satisfaction 2. Negative attitude toward the members of specific groups, based
solely on the fact that they are members of those groups.

Prejudice 3. Positive or negative attitudes held by individuals toward their jobs.

Stereo types 4. Relatively stable clusters of feelings, beliefs and behavioral intentions
toward specific objects, people or institutions.

43
Codes:

a b c d

(A) 1 2 3 4

(B) 2 3 4 1

(C) 3 4 1 2
(D) 4 3 2 1

Match the following:

Delegating 1. A function of a situation wherein a leader is effective only when


the style used to influence and alter the situation is appropriate.

Situational Theory 2. Low nurturing and low regulating behavior.

Grid training 3. A function of a situation wherein a leader permits subordinates to


take part indecision makingand permit themaconsiderabledegreeofautonomy.

Participative Leadership 4. A multi-step process designed to cultivate concern for

people and concern for production.

Codes:

abcd

(A) 1 2 3 4

(B) 2 1 4 3

(C) 3 2 4 1

(D) 4 3 1 2

JUNE 2013

The form of learning in which people acquire new behaviors by systematically


observing the rewards and punishments given to others is known as

Operant conditioning

Positive reinforcement

Modeling

44
Law of effect

Diffusion of routine information takes place through

Downward Communication

Upward Communication

Horizontal Communication

External Communication

An integrated group of activities to bring about a change is known as

Organization development

Interventions

OCTAPACE

Collaborative culture

Match the following:

a. Motivation is a function of

fairness in social exchanges. 1. Expectancy Theory

b.People are motivated to behave

in ways that produce valued outcomes. 2. Alderfer‘sERGTheory

Determining specific levels of performance for workers to attain and then striving to
attain them. 3. Equity Theory

When people are frustrated by their


inability to meet needs at the next higher
level in the hierarchy, they regress to the
next lower category of needs and intensify
their desire to gratify these needs. 4. Goal-Setting Theory
Codes :

abcd

(A) 1 2 3 4

45
(B) 4 3 2 1

(C) 3 1 4 2

(D) 3 4 1 2

Match the following:

Self-efficacy 1. Determining specific levels of performance for workers to attain


them.

Goal setting 2. The belief that one‘s efforts will positively influence one‘s
performance.

Expectancy 3. People strive to maintain ratio of their own outcomes to

their own inputs that are equal to that of those with whom they compare themselves.

Equity Theory 4. One‘s belief about having the capacity to perform a task.

Codes :

abcd

(A) 1 2 3 4

(B) 4 1 2 3

(C) 3 4 1 2

(D) 2 3 4 1

DEC 2012

When analyzing your business and its environment, it is useful to carefully inspect

Threats

Opportunities

Strengths and weaknesses

All of the above

Which of the following is an example of an external threat?

Decreased competition

46
New Trade Regulations

Global Sales Potential

Economies of Scale

Expectancy Theory of Motivation was propounded by

Porter and Lawler

McGregor

Vroom

J. Stacy Adams

Which one of the following is not a step in planning?

Establishing objectives

Developing premises

Determining alternative courses

Identifying needs of employees

Planning is looking ahead and control is

Scanning environment

Looking back

Setting targets

Defining objectives

JUNE 2012
Who divided all activities of the organizations into six groups; Technical,
Commercial, Financial, Security, Accounting and Managerial?

Peter Drucker

D. E. McForland

Henry Fayol

George R. Terry

47
What are the elements that a Mission Statement of an Organization should include?

Self guidelines for Business Operations

Identifies the reasons for existence of a company and its responsibilities to the
stakeholders.

Identifies the firms‘ customers and their needs and matches them to the products and
services.

All of the above (A), (B) and (C).

Changes in population characteristics such as age, gender, race, marital status, income
and education are examples of change:
Demographic

Cultural

Geographic

Diversity

Which of the following is not included as Micro-Environmental Variables?

Prevailing economic and political conditions.

Emerging new technologies

Financial conditions and culture

None of the above

During his days at Midvale Steel Company F.W. Taylor saw that employees soldiering
– deliberately working at a pace slower than their capabilities. He identified that, worker
indulge in soldiering primarily for the following reasons:

Fear of losing jobs if they increase their output.

Faulty wage systems.

Out-dated methods of working

All of the above

48
DEC 2011
Employees with high self-esteem set

Higher goals for others

Higher goals for themselves and lower goals for others

Higher goals for themselves

None of the above

Need for achievement goes with

F.W. Taylor

Hertzberg

McGregor

McClelland

An organizational memory includes the following except

Information that employees possess

Knowledge embedded in the organization‘s systems and structures

Documents

Knowledge that is not documented

Note:- Answer for the question is not given by UGC

People should be held accountable for their own behavior, and if holding people
accountable for their own behavior entails capital punishment, then so be it. However,
no person should be held accountable for behavior of others over which he or she had
no control. Which of the following is the most logical conclusion of the argument
above?

People should not be held accountable for the behavior of other people.

People have control over their behavior.

People cannot control the behavior of other people.

Behavior that cannot be controlled should not be punished.

49
Note:- Answer for the question is not given by UGC

Nominal group technique is

A consensus planning tool, generally used by groups to discuss debate and decide on
issues of strength identification, problems and solutions.

A consensus planning tool to arrive at decisions on issues, for instance man-power


requirement, by involving group of experts through blind rounds of communication

A majority based decision making tool

None of the above

Note:- Answer for the question is not given by UGC

JUNE 2011

Long – lasting beliefs about what is important in a variety of situations, that guide
our decisions and actions are:

Values

Ethical dimensions

Priorities

Desires

Figure – Ground Theory explains the process of

(A) Cognition (B) Sensation

(C) Perception (D) Motivation

Successive re-enforcements resulting in desired behavior are

Mentoring

Motivation

Shaping

behavior-modification

Psychological contract is related to

Job – person fit

50
Role – person fit

Organization – person fit

None of the above

Equity is called as

Equality of all

Standard performance

Comparative sense of justice to self

None of the above

DEC 2010
Which of the following is anobjective of human resource management?

Productivity

Quality of work life

Organizational change

All the above

Note:- Answer for the question is not given by UGC

Motivation implies that theemployees in an organization

Exert more effort toaccomplish the desiredgoals of the organization.

Exert more effort toaccomplish the individualgoals.

Exert more effort toaccomplish the commongoals of employees.

Exert more effort toaccomplish the desiredgoals of the employer, employees and
theGovernment.

Communication can be

Oral

Written

Oral and Written

51
None of the above

Which of the following is notconsidered as a leadership style?

Task oriented leadershipstyle.

Society oriented leadershipstyle.

Employee orientedleadership style.

Autocratic leadership style

Which of the following method hasnot been given a statutory form in India?

Conciliation

Mediation

Voluntary Arbitration

Adjudication

June 2010
A situation where management isunable to provide employment dueto non-
availability of work iscalled

I. Lock out II. Lay off

III. Termination IV. Closure

Find the correct combinationaccording to the code.

(A) I & II (B) II & III

(C) I & III (D) II & IV

Which one of the settlementmethods is not relevant here fordisputes?

Collective Bargaining

Compulsory Adjudication

Voluntary Arbitration

Reference to Civil Court

Which of the following shows asituation of Trade Union rivalries in India?

Different Unions indifferent organizations.


52
More unions in the sameorganizationhavingaffiliation with differentpolitical parties
andrepresenting the same typeof workers.

More unions in the same organization all representing different types of workers.

None of the above.

Reduction of Labor Force is called

Termination

Retrenchment

Lay-off

Right sizing

DEC 2009
In Maslow‟s need hierarchy theory, which of the following is not high order needs?

(A) Safety (B) Social

(C) Esteem (D) Self-Actualization

Feeling arising out of inadequate definition of roles is known as

(A) Role ambiguity (B) Role conflict

(C) Role perception (D) Role expectation

A type of group discussion process in which members of the group are


encouraged to generate as many imaginative and creative ideas in a relatively
short period of time is known as

(A) Brain storming (B) Group working

(C) Simulation (D) Group effect

The amount of satisfaction an individual anticipates from a particular outcome is known


as

(A) Theory Y (B) Theory Z

(C) Valence (D) Stress

53
A personality characteristic indicating one‟s willingness to do whatever it takes to get
one‟s own way is known as
(A) Locus of control (B) Machiavellism

(C) Job characteristic model (D) Personality legitimacy

JUNE 2009
Which of the following is not one of the ego states of transactional analysis?

Child (C) Adult

Young (D) Parents

Where anchors are illustrations that help to define as superior, average or below
average, the behavior of the employee, the rating scale is known as:

Behavioral expectation scale (C) Forced choice description

Behavioral observation scale (D) Grading scale

In the decision tree model of vroom and yetton the style when the leader shares the
problem with subordinates as a group, obtains collective ideas, and then makes the
decision is identified as:

(A) AI (B) A I I (C) CI (D) CII

Leaders who provide individualized consideration and intellectual stimulation and


who possess charisma is known as:

Transactional Leaders (C) Situational Leaders

Transformational Leaders (D) Visionary Leaders

The drive to become what one is capable of becoming is:

Self-Awareness (C) Self-Efficiency

Self-Actualization (D) Self-Esteem

Which of the following is not one of the career anchors?

Managerial competence (C) Personal competence

Technical - functional competence (D) Security


54
Theory Z has been propounded by:

McGregor (C) Maslow

Ouchi (D) Skinner

Which of the following is not within the scope of Adjudication?

Conciliation (C) Industrial Tribunal

Labor Court (D) National Tribunal

55
Unit III:-Human Resource Management
Concepts and Perspectives in HRM- HRM in Changing Environment, Human Resource
Planning, Objectives, Process and Techniques, Job Analysis- Job Description, Selecting
Human Resources Induction, Training and Development, Exit Policy and Implications,
Performance Appraisal and Evaluation, Potential Assessment, Job Evaluation, Wage
Determination, Industrial Relations and Trade Unions, Dispute Resolution and
Grievance Management, Labor Welfare and Social Security Measures.

N0V 2017
Assertion (A): Promotion is a move within the organization to a higher position that
has greater responsibilities and requires more advanced skills.

Reasoning (R): Promotion may not involve a raise in status but a hike in salary is a must.
Code:

(A) and (R) both are correct.

(A) and (R) both are incorrect.

(A) is correct whereas (R) is incorrect.

(A) is incorrect whereas (R) is correct.

Match the following and select the code of correct matching:

List - I List – II

Identification of leadership potential (i) Vocational Tests

Finding most suitable area of working (ii) Aptitude Tests

Discovering interest and potential (iii) Intelligence Tests for


acquiring skills

Measuring capacity to think, learn (iv) Personality Tests and


draw relationships

Code:

(a) (b) (c) (d)

56
(iv) (iii) (ii) (i)

(i) (ii) (iii) (iv)

(3) (iv) (i) (ii) (iii)

(4) (i) (iii) (ii) (iv)

Which one of the following is a facility to file anonymous complaints?

(1) Juke Box (2) Wide Box (3) Gripe Box (4) Hard Box

Which of the following is/are not gain sharing plan(s)?

Scanlon Plan

Rucker Plan

Employee Stock Option Plan

Improshare Plan

Code :

(c) only

(d) only

(c) and (d) both

(4) (b), (c) and (d)

In which one of the following methods of performance appraisal, predetermined


percentages of rates are placed in various performance categories ?
Alternation Ranking Method

Forced Distribution Method

Paired Comparison Method

Check - list Method

JAN 2017
Arrange the following steps of training and development process in the right
sequence:

Need analysis
57
Validation

Evaluation

Implement the programme

Instructional design

(1) a, e, d, c, b (2) a, e, c, b, d

(3) a, e, b, d, c (4) a, b, e, c, d

Which one of the following is related to „Standard of Personnel?

(1) Job Specification (2) Job Description

(3) Job Design (4) Job Evaluation

If an employee desires to pay more than the minimum required contribution under
the Employees‟ Provident Fund and Miscellaneous Provisions Act, 1952, then

Employer shall also pay an amount equal to the total contribution of employee.

Employer shall pay only half of the additional contribution of employee.

Employer is under no obligation to pay the additional contribution.

The act is silent regarding this matter.

Under the Employees‟ State Insurance Act, 1948, sickness benefit can be paid for
which one of the following maximum periods?

45 days in two consecutive benefit periods.

66 days in two consecutive benefit periods.

91 days in two consecutive benefit periods.

180 days in two consecutive benefit periods.

Which one of the following laws is enacted by the Central Government and
enforced by the State Governments?

The Employees State Insurance Act, 1948

The Employees‘ Provident Fund and Miscellaneous Provisions Act, 1952

Factories Act, 1948

58
The Mines Act, 1952

JULY 2016
Most job descriptions contain sections that cover –

(1) Responsibilities and duties (2) Job summary

(3) Working conditions (4) All of the above

Match the items of List – I with the items of List – II. The items relate to
evaluation and follow-up of training process.

List – I List – II

Results i. Document the learner‟s immediate response to the training.

Learning ii. Note supervisor‟s reactions to learner‟s performance following


completion of the training.

Reaction iii. Use feedback devices or pre and post tests to measure what learners have
actually gained.

Behavior iv. Determine the level of improvement in job performance

Codes:

a b c d

iii ii i iv

iv iii i ii

i ii iii iv

iv i iii ii

Which one of the following processes allows top management to diagnose the
management styles of supervisors, identify potential, employee problems, and take
corrective action with individual supervisors as necessary?

MBO

Strategic performance appraisal

Organization Development

Upward feedback
59
Statement – I: In competency or skill-based pay, employees are paid for the range,
depth and types of skills and knowledge they are capable of using rather than for
the job they currently hold.

Statement – II: Broad banding results into increase in salary grades and ranges from
3 or 5 to 10 or more.

Codes:

Only Statement – I is correct.

Only Statement – II is correct.

Both Statements – I and II are correct.

Both Statements – I and II are incorrect.

Which one of the following is not a labor law related to wages?

The Workmen‘s Compensation Act, 1923

The Payment of Bonus Act, 1965

The Payment of Wages Act, 1936

The Minimum Wages Act, 1948

DEC 2015
Which one of the following statements is not true in the case of Human
Resource Management?

(1) It performs developmental function (2) Employees are motivated by salary

(3) It is proactive in nature (4) It consists of various sub-systems

Match the items given in the ListI and ListII and choose the correct option:

ListIListII

Personnel replacement chart (i) A chart prepared for each position in a company
to show possible replacement candidates and their qualifications
Job posting(ii) The ongoing process of systematically identifying, assessing and
developing organizational leadership to enhance performance

60
Succession planning (iii) Company records showing present
performance and promotability of inside candidates for the most important
positions
Position replacement card(iv)Publicizing an open job to employees and listing its
attributes, like qualifications, supervisor, working schedule, etc.

Codes:-

(a) (b) (c) (d)


(ii) (i) (iii) (iv)
(iii) (i) (iv) (ii)
(iv) (ii) (i) (iii)
(4) (iii) (iv) (i) (ii)

Which one of the following training methods is not a managerial „on-the-job training
method?

Coaching (3) Job Rotation

Action Learning (4) Management Games

to deal with employee indiscipline provides the offender every opportunity to


state his side of the case.

Punitive approach (3) Humanistic approach

HRD approach (4) Judicial approach

Which one of the following is a disadvantage of Critical Incident Method as a tool of


performance appraisal?

Difficult to rate or rank employees relative to one another

Time - consuming

Can cause disagreements among employees and may be unfair if all employees are, in
fact, excellent

Employee‘s appraisal results depend on employer‘s choice of cut-off points

Assertion (A): The more differentiated the HR environment, the more


uncertain it shall be:

Reason (R): Organizations are dependent in an environment where human


resources are not widely available.

61
(1) Both (A) and (R) are correct
(2) (A) is correct and (R) is the right explanation of (A)
(3) (A) is correct but (R) is not the right explanation of (A)
(4) Both (A) and (R) are incorrect

Which one of the following is a type of interview where a series of job-related questions
are asked that focus on how the candidate would behave in a given situation?

Behavioral interview (3) Situational interview

Job-related interview (4) Structured interview

Consider the following statements:

Sensitivity training was developed by Kurt Lewin

In-basket exercise is a simulated training method

Depth interview is also known as Directive Interview

Job evaluation is carried out for promoting job satisfaction Which

of the above statements are true?

Only (a) and (c)

(3) (a), (b) and (c)

Only (a) and (b)

(4) (b), (c) and (d)

Behaviorally Anchored Rating Scale (BARS) consists of the following steps:

Reallocate incidents

Develop performance dimensions

Generate critical incidents

Develop final statements

The correct chronological order of these steps is:

(1) (a), (b), (c), (d)(3) (c), (b), (a), (d)

(2) (b), (c), (a), (d) (4) (a), (c), (b), (d)

62
Consider the following elements:

(a) Actors (b) Inputs (c) Context (d) Output (e) Ideology

Which of these are not the elements of John Dunlop‟s Framework of Industrial
Relatives System?

(1) (a) and (b) (2) (a) and (e) (3) (b) and (d) (4) (a) and (d)

DEC 2014

Given below are four statements. Some of the statements are incorrect. You have to
choose the correct one.

A satisfied employee is a motivated employee.

Employees who are happy ―being around‖ are good contributors to the organization.

Motivated employees do not need engagement.

Customer loyalty has been found to be positively correlated with employee


engagement.

The author of the book „The World is Flat: A Brief History of the Twenty First Century‟
is

(A) Thomas L. Friedman (B) RaghuramRajan

(C) Michael Armstrong (D) VineetNayyar

ESOP stands for and was developed by

Employee Stock Ownership Plans; Wallace Forbes

Employee Stock Ownership Programs; Louis Kelso

Employee Stock Ownership Plans; Louis Kelso

Employee Share Ownership Programs; Louis Kelso

Match items given in List – I, with those in List – II:

List – I List – II

Predictive analytics to help anticipate


the result of HR strategy i. Job Specification

63
Statement of purpose, scope, duties,
task and responsibilities of job ii. Ernest J. McCormick

Position Analysis Questionnaire iii. Job Description

Statement of qualifications and qualities


required of an employee to be successful iv. Workforce Analytics
Indicate the correct code:
Codes:
abcd

iv iiiii i

i ii iii iv

i iv ii iii

ii iv i iii

Match the items of List – I and List – II:

List – I List – II

Procedural Rules i. An interim or final determination of any industrial dispute

Managerial Aspects ii. Terms and conditions of employment and control on


transfers, promotions etc

Substantial Rules iii. Mechanism of dealing with interpretation and


implementation of agreements

Award iv. Assignment of work and adjustment of workforce

Indicate the correct code:

Codes:
abcd

iv ii i iii

iii iv ii i

i ii iii iv

ii iii iv i

64
JUNE 2014

Match the following:


List – I List – II
(Concept)(Term)
An ongoing and formalized effort that
focuses on developing enriched and more
capable workersi. Directionphase
A career development activity in which
managers make decisions regarding
the advancement potential of subordinatesii. Careerdevelopment
A career development activity that focuses
on preparingpeople to fillexecutivepositionsiii. Promotabilityforecast
Determining the type of career that employees
want and the steps they must take to realize
their career goalsiv. Succession

Codes :
abcd
i ii iii iv
ii iii iv I
ii iii i iv
i iii ii iv

32.A formal explanation of the knowledge, skills, abilities, traits and other characteristics
necessary for effective job performance is known as

Job Description

Job Analysis

Job Specification

Job Enrichment

aims to reduce reliance on arbitrary methods of pay determination by introducing


an element of objectivity in the way jobs are compared.
(A) Performance appraisal (B) Job evaluation

(C) Job enrichment (D) Attrition

65
Match the following :

List – I List – II

The process of examining how work creates or


adds value to the ongoing processes in a business i. Job Enrichment
A fundamental rethinking and radical redesign of
business processes to achieve dramatic improvements in
cost, quality, service and speed ii. Job Design
The process of organising work into the tasks
required to perform a specific task iii. Work flow
analysis
The process of putting specialized tasks back together
so that one person is responsible for producing a whole
product or an entire service iv. Business process reengineering (BPR)
Codes :

abcd

i ii iii iv

ii i iv iii

iii iv i ii

iii iv ii I

The process of reorganizing a company‟s employees to improve their efficiency is


termed as

Right sizing

Down sizing

Retrenchment

Lay-offs

66
DEC 2013
Why is „procedural justice‟ important in the context of the management of
misconduct?

It reflects on the integrity of HR professionals.

It ensures that individuals have a sense that they have been treated fairly.

It reflects on the values and attitudes of top management.

It protects the interest of daily wage earners.

To be effective a points-based rating system requires:

Close management control

Comprehensive, reliable and consistent information

Objectivity in assessments

360° assessment

Too much of reliance on internal recruitment can result in

Reduced job performance

High labor turnover

Internal conflict

Poor group dynamics

The concept of stagnation in the context of HRM means:

Lack of appropriate selection criteria.

HR staff having very limited experience outside the HR functions.

Over-reliance on the internal labor market to fill new positions.

Lack of integration of recruitment and selection into the wider human resource
function.

Negotiations are an important aspect of the collective-bargaining process. What


do they ensure?

That conflict is contained within manageable boundaries.

67
That there is an agreement between all parties involved.

That conflict is always resolved.

It achieves a set of lasting agreements.

SEPT 2013
On-the-job training methods are not based on

Demonstration methods

Interactive methods

Vestibule Training methods

Apprentice training method

Minimum wage means

Wage sufficient to ensure the workman food, shelter, clothing, frugal comfort and
provision for evil days.

Wages paid in proportion to workman‘s work efficiency.

A wage sufficient to satisfy the workman‘s basic needs.

A sum of money paid under contract by an employer to a workman for services


rendered.

Which of the following statement is true?

Profit sharing is an agreement freely entered into by which the employees receive
share fixed in advance from the organization‘s profits.

An experiment in profit shares on a wide scale would therefore be definitely


undertaking a voyage of an unchartered sea.

Profit distribution under a profit sharing plan is used to fund employee retirement
plans.

All of the above.

Performance appraisal includes

Check reviews done by the supervisors.

Review his performance in relation to the objectives and other behaviors.


68
Promote employees for self-appraisal.

All of the above.

Match the following:

Human Resource Strategy 1. A goal-directed approach in which workers and


their supervisors set goals together for the upcoming appraisal period.

Compensation 2. Time during which employees can choose not to be at work.

Flexi time 3. A legally required benefit that provides medical


care, income continuation and rehabilitation expenses.

Management by Objectives 4. A firm‘s deliberate use of human resources to


help it to gain or maintain an edge against its competitors.

Codes:

abcd

(A) 1 2 3 4

(B) 4 32 1

(C) 2 3 4 1

(D) 3 4 1 2

JUNE 2013
Human resource planning system includes

Human resource supply forecast

Human resource inventory

Corporate plan

All of the above

Who among the following propounded the concept of collective bargaining?

Beatrice and Gompers

Beatrice and Emerson

Gompers and Emerson

69
Gautt and Gompers

Note:- Answer for the question is not given by UGC

What are the benefits of human resource planning?

Achieve economy in hiring new workers.

Match personnel activities and future organization objectives efficiently.

Improve the utilization of human resources.

All of the above

Human Resource Management includes

1. Employee Grievance 2. Organizational climate

3. Job incentives 4. Recruitment

5. Selection

Select the correct answer from the following:

(A) 1, 2, 3 and 4 (B) 1, 3, 4 and 5

(C) 1 and 5 (D) All of the above

Match the following:

Job Analysis 1. Determining worth of a job.

Job Evaluation 2. Examining how work adds value to the ongoing


process.

Job Design 3. Determining the pertinent facts about the job.

Work Flow Analysis 4. Organizing work into the tasks required to perform a
specific job.

Codes:

abcd

(A) 1 2 3 4

(B) 4 3 2 1

(C) 3 1 4 2
70
(D) 2 3 1 4

DEC 2012
Human Resource Management (HRM) is a part of the broad Human Resource
Development (HRD) System, as this focus to

Selection, Induction, Training and Development

Operational and Organizational

(A) and (B) above

None of the above

Performance Appraisal is a double edged tool to

Create space for the employee to organizationally survive.

Offering challenges for promotion.

Accompanying the course of Demotion.

All of the above.

Wage determination is mostly done through tools which are

(A) Objective (B) Subjective

(C) Both of (A) & (B) (D) None of these

Job Evaluation criterion comes from

(A) Job manual (B) Job description

(C) Job specification (D) Job duration

Exit Policy primarily emphasizes in the broad sense, for policy makers as

Removing employees

Down sizing

Retiring people and rehabilitating them

Bringing new blood to the Corporate

JUNE 2012

71
Among the best known trait approaches to personality measurement – column A gives
Traits and column B states the name of authority defining them. Match the correct
combination

Traits Author

20 + needs Murray

16 traits Eysenck

3 traits Cattell

5 traits Costa &Merree

57.“Third Party intervention” as “Conflict Resolution” is

often required

seldom required

required as a mandate, when conflict remains unresolved

not at all considered as an option

The policy of introducing “New Blood” is

Steriotypic

Bureacratic as well as redtapic

Innovative and challenging, making the corporate dynamic

Innovative, challenging, but often resisted

An “Assessment Centre” is

(A) A place (B) A technique

(C) Both (A) and (B) (D) None of the above

“Organizational learning” and “Learning organization” are

(A) Same (B) Different

(C) Reverse to each other (D) Complementary to each other

DEC 2011
72
Which pattern reflects a pure executive form of management?

(A) Functional (B) Line

(C) Line and Staff (D) Committee

“A place for everything, everything in its place” is

(A) American Management (B) 5s Practice

(C) Peter Principle (D) A Chinese Practice

„Appreciative Enquiry‟ is

(A) Psychological Theory (B) Training Method

(C) Business etiquette (D) HR Quality

Robert Keplan is associated with

(A) A Benchmark Practice (B) Balanced Score Card

(C) Kaizen (D) Quality of Life

Strategic Intent of an Organization should clearly spell out

Who we are

Where are we going in the long term

How will we measure the performance

All of the above

JUNE 2011
The distinction between „job enrichment‟ and „job enlargement‟ is

Semantics

‗Job enrichment‘ is vertical loading while ‗job enlargement‘ is horizontal loading

‗Job enrichment‘ is the outgrowth of Hertzberg‘s theory while ‗job enlargement‘ is of


Maslow‘s orientation.

‗Job enrichment‘ is more for the individual and the other is more of organization
making

In „delegation‟
73
Only authority is delegated not responsibility

Both authority and responsibility are delegated

Only responsibility is delegated, not authority

Neither responsibility, nor authority is delegated

Cross-functional groups that operate across space, time and organizational boundaries
with members who communicate mainly through information technologies are

Telecomputers

Virtual teams

Teleworkers

Telemarketers

Career resilience means

Ability to switch careers

Ability to remain with same competencies refining suitably for organizations

Lack of capacity to remain in career

None of the above

Lock out means

An antithesis of strike

Refusal to employ any person in employment

The temporary closing of a place of employment

Illegal strike

DEC 2010
Which of the following method has not been given a statutory form in India ?

Conciliation

Mediation

Voluntary Arbitration

74
Adjudication

What are the operative functions of HRM?

Organizing

Directing

Controlling

All of the above

Which one is not a performance appraisal method?

360° performance appraisal

Balanced score card

Rank method

Interview method

Selection of persons in an organization is the responsibility of

(A) Security Dept. (B) Personnel Dept.

(C) Trade Unions (D) Canteen Dept.

Labor Welfare facilities were incorporated in which legislation?

MRTP Act

Essential Commodities Act

Consumer Protection Act

Factories Act

JUNE 2010
The process of establishing the value of jobs in a job hierarchy is known as

(I) Job analysis (II) Job requirement

(III) Job evaluation (IV) Performance evaluation

Find the correct combination according to the code.


(A) I & II (B) II & III

75
(C) III & IV (D) I & IV

Which of the following is the meaning of Human Resource Planning?

Evaluation of job

Satisfaction of the employees on the job

Appraising the performance of employees

It is the process by which an organization ensures that it has the right number and
kind of people at the right place, at the right time.

Induction refers to

Giving training to the employees.

Giving incentive to the employees.

Introducing employees to the organization culture and situation.

Increasing the morale of the employees.

Which of the following is not a fringe benefit?

(A) Transport (B) Subsidized canteen facilities

(C) Free education to the children(D) Dearness Allowance

„X‟ and „Y‟ theory was prepared by

Herzberg

Maslow

Porter and Lawler

McGregor

DEC 2009
81.A personality characteristic indicating one‟s willingness to do whatever it takes to get
one‟s own way is known as

(A) Locus of control (B) Machiavellism

(C) Job characteristic model (D) Personality legitimacy

76
The process of studying and collecting information relating to a specific job is known
as
(A) Motion study (B) Job analysis

(C) Job specification (D) Job enrichment

The horizontal expansion of jobs is termed as

(A) Job enlargement (B) Job enrichment

(C) Job sharing (D) Job involvement

A bargaining which is based upon zero-sum game is known as

(A) Integrative bargaining (B) Principled bargaining

(C) Distributive bargaining (D) none of these

The final link in the communication process that puts the message back into the system
as a check against misunderstandings is described as

(A) Decoding (B) Feedback

(C) Feedback Loop (D) None of these

JUNE 2009
The drive to become what one is capable of becoming is:

Self-Awareness (C) Self-Efficiency

Self-Actualization (D) Self-Esteem

Which of the following is not one of the career anchor:

Managerial competence(C) Personal competence

Technical - functional competence (D) Security

Theory Z has been propounded by:

McGregor (C) Maslow

Ouchi (D) Skinner

Which of the following is not within the scope of Adjudication?

Conciliation (C) Industrial Tribunal


77
Labor Court (D) National Tribunal

Outplacement services are provided to employees who have been:

Dismissed (C) Retired

Rendered surplus (D) Given voluntary retirement

What notice period is required for going on strike/lockout in public utility


services?

(A)One week (C) Six weeks


(B)Three weeks (D) Nine weeks

Note:- Answer for the question is not given by UGC

Modifying methods of performing a job to reduce the levels of skill or skills


demanded is known as:

(A)Multi - tasking (C) Multi - skilling


(B)De - skilling (D) None of these

Note:- Answer for the question is not given by UGC

78
UNIT- IV:Financial Management
Financial Management Nature and Scope, Valuation Concepts and Valuation of
Securities, Capital Budgeting Decisions, Risk Analysis, Capital Structure and Cost of
capital, Dividend Policy, Determinants, Long term and Short-term Financing
Instruments, Mergers and Acquisitions

N0V 2017
Indicate the correct code for the combination from the following regarding the
superiority of the wealth maximization over the profit maximization objective of the
financial management:

It takes into account long term stability and survival of the firm.

It takes care of all other objectives of the firm like exploring and expanding
markets, etc.

It is based on the assumption of perfect competition in the market.

It considers risk along with returns.

Code:

(1) (a), (b), (c) and (d)

(2) (b), (c) and (d)

(3) (a), (b) and (d)

(4) (a), (c) and (d)

The controller function of the financial management concerns with:

Advertising the public issue of the firm

Negotiating with banks for loans

Analyzing variance between standard costs and actual costs

Estimating the future cash flows from certain project

Capital Asset Pricing Model (CAPM) for risk measurement has been given by:
79
Sharpe and Lintner

Lintner and Treynor

Sharpe, Lintner and Treynor

Lintner, Modigliani and Miller

Beta (b) is a measure of:

(1) Systematic Risk (2) Unsystematic Risk

(3) Total Risk (4) Business Risk

Capital budgeting is concerned with:

Arranging cash resources for the project.

Managing the working capital of the firm.

Managing the fixed assets through repairs and renewals.

Evaluating the returns and investment in projects.

JAN 2017
The cost of external equity can be most appropriately computed as per the

(1) Earnings price ratio (2) Dividend price ratio

(3) Dividend price plus growth ratio (4) Capital assets pricing model

For the following items in List – I and List – II, indicate the correct code after
matching them:
List – I List – II
Net income approach for capital structure a. Modigliani, M. and Miller
M.H.
Net operating income approach for capital structure b. Robert Bruner
Irrelevance of capital structure for the value of the firm. c. Ezra Soloman
FRICT analysis for capital structure d. David Durand
Codes:

i ii iii iv

80
abcd

d c a b

dcba

badc

Which one of the following is not a feature of „Preference Shares‟?

Prior claim on income / assets of the company over equity shareholders.

Redeemability after certain period.

Possessing voting rights on important issues of the company.

May possess the right to participate in surplus profits of the company.

The basic consideration for dividend pay-out for a company excludes which one of the
following?

Investment opportunities for the company

Expectations of the shareholders of the company

Legal and financial restrictions for the company

Stability of the dividend considerations

For the following two statements of Assertion (A) and Reasoning (R) indicate the
correct code:

Assertion (A): Shareholders Wealth Maximization (SWM) and not the profit
maximization is an appropriate and operationally feasible financial management goal.

Reasoning (R): There exists a principal-agent relationship between the shareholders and
the management of the company.

Codes:

(A) and (R) both are correct.

(A) is correct but (R) is incorrect.

(A) is incorrect but (R) is correct.

(A) and (R) both are incorrect.

81
JULY 2016
Match the items of List – I with the items of List – II:

List – I List – II
Net present value i. Number of years required to recover the original cash outlay
invested in a project.
Payback period ii. It is the rate of return which equates the present value of anticipated
net cash flows with the initial outlay.
Internal rate of return iii. It is found out by dividing the average after-tax profit by
the average investment.
Accounting rate of return iv. It is the difference between the present value of cash
inflows and present value of cash outflows.
Codes:

abcd

iv iii ii i

iii i iv ii

iii iv i ii

iv i ii iii

An employee borrowed a 3 year loan of ` 10,000 at 9% from his employer to buy


amotorcycle. If employer requires three equal end-of-year repayments, then the annual
installment will be .

(1) Rs3, 633(2) Rs3, 951

(3) Rs3, 333 (4) Rs4, 233

Match the items of List – I with the items of List – II:

List – I List – II

M.M. Hypothesiswithouttaxesi. The cost of debt and cost of equity are assumed tobe
independent to the capital structure.

82
Net operating incomeapproachii. In the absence of taxes a firm‘s market value andthe
cost of capital remain invariant to the capitalstructure changes.

M.M. Hypothesis undercorporatetaxesiii. The cost of equity is assumed to increase


linearlywith leverage.

Net income approach iv. The value of the firm will increase with debt due tothe
deductibility of interest charges for taxcomputations and the value of the levered firm
willbe higher than the unlevered firm.

Codes:

abcd

ii iii iv I

ii i iv iii

i ii iii iv

iii iv i ii

Explicit Resale Price Valuation method pre-supposes that an investor keeps the share
only for few years and eventually sells the shares. The value of the share, therefore,
depends upon which of the following?

(I): The stream of dividends expected during investor‟s ownership.

(II): The price expected to be realized whenever investor sells the share.

Codes:

(I) is true, but (II) is false.

(I) is false, but (II) is true.

Both (I) and (II) are true.

Both (I) and (II) are false.

It is an act of acquiring effective control by one company over assets or management of


another company without any combination of companies?

(1) Consolidation (2) Acquisition

(3) Merger (4) None of the above

DEC 2015
83
If raw materials are in store for 2 months, processing time 2½ months, finished goods
remain in store for 15 days, debtors are allowed 60 days‟ credit and credit received
from suppliers of raw material is one month, the operating cycle period is:

(1) 7 months (2) 6 months (3) 6½ months (4) 5 months

Which of the following is not general disclosure requirement under accounting


standard-14?

Name and nature of Business (3) Accounting method followed

Description and number of shares issued (4)Particulars of scheme sanctioned

Under the Modified Accelerated Cost Recovery System (MACRS) an asset in the “5
year property class” would typically be depreciated over how many years?

(1) 4 years (2) 5 years (3) 6 years (4) 7 years

According to the concept of financial signaling, management behavior results in new


debt issues being regarded as “ news” by investors.

(1) Non-Event (2) Bad (3) Risk Neutral(4) Good

The Exchange of interest and/or principal payment between two parties is called:

(1) Swap (2) In the money (3) Forward (4) Put option

JUNE 2015
State the price of the share for the year t, if the rate of growth of the firm is 10%, EPS
and DPS for the year t11, are ` 3 and ` 2 respectively and the investors‟ required rate of
return is 20%.

(1) Rs30 (2)Rs20 (3) Rs25 (4) Rs10

In which of the following appraisal criteria of capital budgeting, the use of varying
opportunity cost of capital as a discount factor is possible?

NPV (b) IRR (c) Pay-back Period (d) ARR

Only (a) is correct. (3) (b) and (d) both are correct.

(a) and (b) both are correct. (4) Only (c) is correct.

84
According to the CAPM model, the cost of equity is represented by:

Rm1 (Rm2Rf) bj (3) bj1(Rm2Rf)Rm

Rf1(Rm2Rf)bj (4) Rm1Rf1bj

Where R indicates market rate of return, R indicates risk free rate of return and b
indicates beta of stock j

Anticipated annual dividend divided by the market price of the stock is referred
as:

Dividend Pay-out (3) Return on Equity

Dividend yield (4) Regular dividend

If the existing shareholder does not exercise his/her right or does not sell the right
entitlement:

his/her wealth will remain unaffected

his/her wealth will increase

his/her wealth will decrease

his/her wealth may increase or decrease

DEC 2014
Consider the following two statements:

Statement I:Bond value would decline when the market rate of interest rises. Statement
II: There is a positive relationship between the value of a bond and the interest rate .
Select the correct code:

Codes:

Statement I and Statement II both are correct.

Statement I is correct, but Statement II is incorrect.

Statement II is correct, but Statement I is incorrect.

Statement I and Statement II both are incorrect.

85
Match the following techniques of capital budgeting given in List – I, with one of the
Characteristics given in List – II and select the correct code:
List – I
NPV
IRR
Profitability Index
Payback period List –
II
Under certain circumstances its reciprocal is a good approximation of the rate of return.
Shareholder‟s wealth maximization
Possibility of multiple outcomes in single calculation
Measure of projects‟ relative profitability
Codes:
a b c d
i ii iii iv
ii iii iv I
iii iv i ii
iv I ii iii
In the case of redeemable debentures issued at discount and to be redeemed at par,
approximate cost of debenture (before tax adjustment) will be equal to

Rate of interest

Amount of interest divided by issue price

Amount of interest divided by par value

Amount of interest+ [par value – issue price]


Tenure of debenture
-----------------------------------------------------------------
Par value+ issue price

86
While granting the term loan, if lending institution puts a condition to reduce the debt
equity ratio by issuing additional equity share-capital or preference share capital, it is
known as

asset-related restrictive covenant

Cash flow related restrictive covenant

Control related restrictive covenant

Liability related restrictive covenant

According to Lintner‟s model of corporate dividend behavior, the dividend for the
year„t‟ is dependent on:

earnings per share for the year t

Dividend per share for the year t-1

Adjustment rate

Target pay-out ratio

market price of share

Select the correct code:

I, II and III are correct.

II, III, IV and V are correct.

I, II, III and IV are correct.

I, II, IV and V are correct.

JUNE 2014
The value of a bond with a given maturity period is

Present value of maturity value of the bond

Present value of annual interest plus present value of maturity value

Total amount of interest plus the maturity value received

Maturity value received

87
The capital budgeting appraisal criterion that is most appropriate in the situation of
capital rationing will be
Payback period

Internal Rate of Return

Net present value

Profitability index

For computation of cost of equity, arrange the following measures in the ascending
order of accuracy:

Capital Asset Pricing Model

Dividend-Price Ratio

Earning-Price Ratio

Dividend-Price plus Growth Ratio

Codes:

(A) I ---> III ---> II ---> IV

(B) IV --->I --->III ---> II

(C) III ---> II ---> IV ---> I

(D) II ---> IV ---> I ---> III

Match the items given in the two lists:

List – I List – II

Debt securities without any explicit interest rate i. Floating Rate Bonds

Company issuing such bonds experiences less financial distress ii. Zero-coupon bonds

Coupon rate quoted as mark-up on the given rate iii. Income Bonds

Codes:

abc

i ii iii

88
i iii ii

ii iii I

iii i ii

Which one of the following types of working capital is financial through a portion of
long-term funds?

Gross working capital

Net working capital

Floating working capital

Regular working capital

DEC 2013
If the going rate of interest is above the coupon rate, the bond will sell :

At a Premium

At a Discount

At Par

None of the above

In case the sales or project‟s investment deviates from expected ones, it needs

Optimistic scenario analysis

Sensitivity analysis

Simulation analysis

Financial break-even analysis

„Trading on equity‟ refers to

Optimum capital structure

Appropriate capitalization

Capital gearing

Watered capital

89
Match the items of two lists, giving the correct code:

List – I List – II

Dividend Capitalization Model i. John Lintner

Dividend Relevance Model ii. James E. Walter

Dividend Irrelevance Model iii. Myron Gordon

Dividend Payout Model iv. Modigliani & Miller

Codes:

abcd

ii i iii iv

i iv ii iii

iii ii iv I

iv iii i ii

The excess payment by the new company to the amalgamating companies for the
appraised value of the assets and liabilities taken over is accounted as

Capital Reserve

Bonus Share Capital

Goodwill

Amount paid for the acquisition of the brand

SEPT 2013
In which case,

The acquirer puts pressure on the management of the target company by threatening to
make an open offer; the board capitulates straight away and agrees for settlement with
the acquirer for change of control.

Poison Put

Bear Hug

Poison Pill

90
None of the above

Which of the following method of incorporation of risk in the capital budgeting decision
framework is useful for situations in which decisions at one point of time also affect the
decisions of the firm at some later date?

Certainty Equivalent Approach

Probability Distribution Approach

Risk-adjusted Discount Rate Approach

Decision-tree Approach

In which of the approach, the market value of the firm depends upon the EBIT and the
overall cost of capital

Net Income Approach

Net Operating Income Approach

Modigliani-Miller Approach

None of the above

Which is the assumption of Modigliani and Miller approach to cost of capital?

The firms can be classified into homogeneous risk class.

The capital markets are assumed to be perfect.

All investors have the same expectations from a firm‘s net operating income which is
necessary to evaluate the value of a firm.

All of the above.

Match the following:

List – I List – II

(Functions of Finance) (Significance)

Financial Statements 1. Check on Financial Activities

Administration of Tax 2. Reduction of Tax Liability

Internal Audit 3. Allocation of Fund

Budgeting 4. Income Statement


91
Codes:

abcd

(A) 1 2 3 4

(B) 4 3 2 1

(C) 4 2 1 3

(D) 2 3 4 1

JUNE 2013
Which ratio explains that how much portion of earning is distributed in the form of
dividend?

Dividend – Debt Ratio

Equity – Debt Ratio

Pay-out Ratio

Earning – Yield Ratio

Modern approach to financial management is

The total fund requirement of the firm.

The asset to be acquired.

Payment of dividend to shareholders.

I only

II only

II & III only

I, II & III

Participating preference shares are those which participate in the

General meeting of the company

Voting

Profits over and above their fixed dividend

92
Management of the company

Which of the following is one of the critical assumptions of Walters‟ Model?

All financing is done through retained earnings; external sources of funds like debt or
new equity capital are not used.

The retention ratio, once decided upon, is constant. Thus, the growth rate, (g = br) is
also constant.

The capital markets are perfect and the investors behave rationally.

All of the above.

This consists of two lists of statements or terms and the candidate has to match an item
in one list with an item in the other:

List-IList-II

(Statement)(Terms)

Preventinghostile takeover1. Managementbuyout

Leveragedbuyout2. Green mail

Accounting formerger3. Pooling ofinterest

Financing formerger4. Cash offer

Codes:

abcd

(A) 1 2 3 4

(B) 2 1 4 3

(C) 2 1 3 4

(D) 3 4 21

DEC 2012
The goal of financial management is to

Maximize the wealth of Preference Shareholders

Maximize the wealth of Debenture holders

93
Maximize the wealth of Equity shareholders

All of the above

The Internal Rate of Return (IRR) is determined where

The Net Present Value is positive

The Net Present Value is negative

The Net Present Value is zero

None of the above

The Tax shield would result in

increase in tax liability

Increase in EPS

Decrease in EPS

Decrease in tax liability

Codes:

(ii) and (iv)

(i) and (iii)

(i) and (iv)

(iii) and (iv)

Which of the following is a main method of issue of stocks?

Vendor placing

Public issue through Prospectus

Private placements

None of the above

The Capital Asset Pricing Model (CAPM) establishes the relationship between

Risk and EPS

Risk and value of the firm

94
Risk and the required rate of return

None of the above

JUNE 2012
The value of the firm is maximized when the

Market price of equity share is maximum

Market price of equity share is minimum

Market value of debt is maximum

(D)None of the above

Which of the following is the main assumption of Waltar Valuation Model?

All financing is done through Retained earnings and external sources of funds.

With additional investment the firms business risk will change.

There is a change in the key variables such as EPS and DPS

None of the above

Which of the following is an important money market instrument?

Debentures

Commercial Paper

Public Deposits

None of the above

The method of payment in Mergers and Acquisitions may include

Cash

Loan stock

Ordinary shares

Convertible loan stock

(i) & (iii) only

(i) & (ii) only

95
(i), (ii), (iii) and (iv)

(ii) & (iv) only

Working capital refers to the capital mobilized for meeting

Long-term financial needs of the company

To meet day-to-day financial obligations of the company

To meet the future financial requirements of the company

(D)None of the above

DEC 2011
In an endeavor to maximize corporate value, a finance manager has to factor in the
following

Optimization Principle

Risk-return Principle

Marginal Principle

All the above

Note:- Answer for the question is not given by UGC

The term financial engineering is related to

Cost of production

Financial restructuring

Product planning

Capital issue

Note:- Answer for the question is not given by UGC

Value of the merged firm shall be

Less than the acquired firm

More than the acquirer

Greater than the target and the acquirer

96
None of the above

Note:- Answer for the question is not given by UGC

When borrowing is less than equity, the company is said to be

Trading on equity

Trading on thick equity

Trading on thin equity

None of these

Note:- Answer for the question is not given by UGC

Match the following:

List – IList – II

(Types of Debt) (Elements)

Secured debt 1. Mortgage on Assets

Unsecured debt 2. Non-mortgage on Assets

Convertible debt 3. Option

Redeemable debt 4. Payment

Codes:

I II III IV

(A) 1 3 2 4

(B) 2 1 3 4

(C) 3 1 4 2

(D) 1 2 3 4

Note:- Answer for the question is not given by UGC

JUNE 2011
Which is the task of a finance manager?

Investment decision

97
Dividend decision

Management of income

All of the above

Which method of capital budgeting focuses on liquidity of a project?

Net present value

Profitability index

Payback period

Internal rate of returns

Which statement is true about deep discount bonds?

These are in the form of low interest bonds

These bonds are sold at a discounted value and on maturity face value of the bond is
paid to the investors

There is no interest payout during lock-in period

None of the above

Financial leverage is

EBIT × 100

Sales

EBIT

EBT

Sales Fixed

Assets

Profit× Capital

Sales

Match the following

List–I (items / method) List – II (used / Application)

Rate of return method 1. Capital budgeting


98
Purchase consideration 2. Merger

Diminishing Balance Method 3. Depreciation

Fifo Method 4. Stock valuation

Code:

I II III IV

(A) 1 3 2 4

(B) 3 2 4 1

(C) 1 2 3 4

(D) 1 4 3 2

DEC 2010
Which one of the following represents number of years required to recover the initial
investment?

Accounting rate of return

Payback period

Internal rate of return

Net present value

Other things being equal, stocks which are highly liquid command

Higher dividend payout ratio

Lower dividend payout ratio

Higher P/E multiples

Lower P/E multiples

Weighted Average Cost of Capital may contain

Cost of Equity

Cost of Debt

Cost of goods purchased

99
Cost of initial investment

Find the correct combination according to the code:

I, II & III are correct.

II, III & IV are correct.

III & IV are correct.

I & II are correct

Long term sources of finance may contain

Retained earnings

Inter corporate deposits

Debentures

Preference share capital

Find the correct combination according to the code:

I, III & IV are correct

II, III & IV are correct

II & III are correct

II & IV are correct

When a firm proposes to acquire another firm, the merger proposal may be viewed as a

Working capital management proposal

Capital budgeting proposal

Financing decision

Dividend decision

JUNE 2010
Which of the following formula is used to calculate Pay Back Period when cash inflows
are constant?
Fixed Assets/Current Assets

100
Fixed Assets/Current Liabilities

Initial Investment cost/Annual cash inflows

None of the above

The P/E ratio approach to stock valuation is also known as

Earnings multiplier approach

Dividend discountingapproach

Required rate of return

None of the above

The capital structure theories which argue that capital structure is relevant to the value
of firm contain

Net Income Approach

Net Operating Income Approach

Traditional Approach

Modigliani and Miller Approach

Find the correct combination according to the code:

I & II are correct.

I & III are correct.

III & IV are correct.

II & IV are correct.

Short term financing instruments may contain

Commercial Paper

Public Deposits

Term Loans

Trade Credit

Find the correct combination according to the code.

I, II & III are correct.


101
II, III & IV are correct.

III & IV are correct.

I, II & IV are correct.

For calculating weighted average cost of capital, cost of each source of capital is
multiplied by proportion applicable to it. The proportions may be based on

Book values only

Target capital structure only

Market values only

All of the above

DEC 2009
Internal rate of return method applied for capital budgeting decision

Allows to take different discount factors.

Uses cost of capital as discount factor.

May give more than one IRR.

Distinguishes between the IRR for lending and borrowing decision.

Beta in the context of security analysis indicates

(A) Systematic risk (B) Unsystematic risk

(C) Total risk (D) All of the above

Assuming constant rate of growth of dividend, value of share will be equal to

P0 = D0 r –

P0 = D1 r –

P1 = D0 r +

102
P1 = D0

r+ g

Theoretically, with the issue of rights share the value of existing shares

(A) Will increase (B) will not change

(C) Will reduce (D) may increase or decrease

When the cash flow outcomes of succeeding period depends on what has happened
before, the probabilities of succeeding period are known as

(A) Joint probabilities (B) conditional probabilities

(C) Simple probabilities (D) decision tree

A high risk, high-yield often unsecured bond rated below investment grade is known as
(A) Income-bond (B) Subordinated debentures

(C) Junk bond (D) Serial bond

JUNE 2009
The computation of NPV is based on the assumption that:

Cash flows for each year remain constant

Net present value can never be less than zero

Intermediate cash flows are being reinvested at the discount factor

Discount factor should remain constant throughout the life of the project

For determination of cost of equity the formula used is:

Rate of interest (1 - t)

Rate of dividend (1 - t)

Rate of Dividend (Face value - Issue Price) / n

(D)D1 + g

Po

103
According to MM - Approach proposition - I, value of firm is:

Independent of capital structure

Dependent on capital structure

Dependent on tax-rate of the enterprise

Dependent on risk of the enterprise

A stable dividend policy indicates:

Stable earning/price ratio (C) Stable pay-out ratio

Stable price/earnings ratio (D) Stable earnings per share

The vertical merger represents merger of firms engaged in:

The same line of business

Different stages of production in an industry

Unrelated lines of business

All of the above

The degree of total leverage is equal to:

Percentage change in EPS/percentage change in sales

Percentage change in EBIT/percentage change in sales

Percentage change in EPS/percentage change in EBIT

Percentage change in sales/percentage change in EBIT

104
UNIT V- Marketing
Marketing Environment and Environment Scanning Marketing Information
Systems and Marketing Research, Understanding Consumer and Industrial
Markets, Demand Measurements and Forecasting, Market Segmentation,
Targeting and Positioning, Product Decisions, Product Mix, Product life Cycle,
New Product Development, Branding and Packaging, Pricing Methods and
Strategies, Promotion Decisions, Promotion Mix, Advertising, Personal Selling,
Channel Management, Vertical Marketing Systems, Evaluation and Control of
Marketing Effort, Marketing of Services, Customer Relationship Management,
Uses of Internet as a Marketing Medium- Other Related Issues Like Branding,
Market Development, Advertising and Retailing on the Net, New Issues in
Marketing

NOV 2017
Which one of the following is the demand state where “Consumers dislike the
product and may even pay to avoid it”?

(1) Unwholesome demand (2) Declining demand


(3) Negative demand (4) Latent demand
Evaluate the statements according to Brand Asset Valuator Model of Brand
Equity:
Statement (I): Knowledge measures the degree to which a brand is seen as different
from others as well as its pricing power.
Statement (II): Esteem measures perceptions of quality and loyalty or how well
the brand is regarded and respected.
Code:
Both the Statements are correct.
Both the Statements are incorrect.
Statement (I) is correct while Statement (II) is incorrect.
Statement (I) is incorrect while Statement (II) is correct.
If a coaching institute provides some supporting study material along with
teaching, then\ which one of the following service mix category would it be?
Hybrid offering

105
Major Service with accompanying minor goods and services
Tangible good with accompanying services
Pure service
Statement (I): A low market - penetration index indicates substantial growth
potential for all the firms.
Statement (II): Generally, price competition increases and margins fall when
the market - penetration index is already high.
Code:
Both the Statements are correct.
Both the Statements are incorrect.
Statement (I) is correct while Statement (II) is incorrect.
Statement (I) is incorrect while Statement (II) is correct.
Which one of the following is a system of partnerships and alliances that a firm
creates tosource, augment, and deliver its offerings?
Value network
Omni channel marketing
Integrated marketing channel system
Direct marketing channel

JAN 2017

Which one of the following components is not the part of broad marketing
environment?
Technological environment
Task environment
Demographic environment
Natural environment
The Coco Cola Company markets a wide range of different beverage products
including bottled water, soft-drinks, juices and sports drinks. Each product
appeals to a different segment. This is an example of which type of market
offering?
Differentiated marketing
Target marketing

106
Undifferentiated marketing
Intensified marketing
Temporarily reducing prices to increase short-run sales is an example of which
one of the following?
(1) Segmented pricing (2) Promotional pricing
(3) Dynamic pricing (4) Geographical pricing
Match the items of List – I with the items of List – II and indicate the code
of correct matching:
List – I List – II
Brand elements i. The marketer‘s vision of what the brand must be and do for
consumers.
Brand line ii. All products, original as well as line and category extensions,
sold under a particular brand name.
Brand personality iii. Those trademark able devices that serve to identify and
differentiate the brand.
Brand promise iv. The specific mix of human traits that may be attributed to a
particular brand.
Codes:
a bc d
iii ii iv I
i ii iii iv
iii i iv ii
iv iii ii i
Statement – I: In developing advertising programme marketing managers
must always start by identifying the target market and buyer motives.
Statement – II: A company may run multiple ad campaigns at the same
time, each emphasizing different aspects of its brand and service.
Only Statement – I is correct.
Only Statement – II is correct.
Both Statements – I and II are correct.
Both Statements – I and II are incorrect.

107
JULY 2016
Out of the following, identify the key constituents for performance marketing of
Holistic marketing dimensions:
Customers
Brand and Customer equity
Employees
Ethics
Environment
Sales revenue
Financial community
Codes:
(1) (a), (b), (c) and (d) (2) (b), (d), (e) and (f)
(3) (c), (e), (f) and (g) (4) (a), (c), (f) and (g)

Which one of the following is a potential drawback of multibranding?


The company‘s resources may be spread over too many brands.
Consumers may become confused about the image of the main brand.
An over-extended brand name might lose its specific meaning for
consumers.
Different product features can appeal to consumers with different buying
motives.
When a firm improves the quality and increases the price of a product in relation
to a competitor making a price reduction, the firm is
.
Moving its brand into a higher price-value position
Changing its target market
Moving its brand into a less competitive position
Adversely positioning its product
Which one of the following explains “the knowledge and courtesy of employees
and their ability to convey trust and confidence”?
(1) Empathy (2) Responsiveness
(3) Reliability (4) Assurance

108
Match the items of List – I with the items of List – II:
List – I List – II
Rich-media ads i. online ads that appear between screen
changes on a website, especially while a new screen is loading.
Pop-ups ii. Display ads that use eye-catching techniques such as float, fly, and
snapback.
Interstitials iii. Ads that users can block through the use of applications
developed by web browser providers.
Codes:
abc
i ii iii
ii i iii
ii iii i
iii i ii

DEC 2015

From the following set of information, which combination is correct to define


the process of perception in order to understand consumer behavior?
Selective Attention (c) Selective Retention
Selective Distortion (d) Selective Apprehension
Code:
Only (a) and (d) are correct (3) Only (b), (c) and (d) are correct
(2)Only (a), (b) and (d) are correct (4) Only (a), (b) and (c) are correct

When the company‟s Salesperson contacts the customer from time to time
with Suggestions about improved uses of the product or additional new
range of products, then it is called as:
Proactive Marketing (3) Reactive Marketing
Accountable Marketing(4) Relationship Marketing
A state of demand where major part of the market dislikes the product and may
even pay a price to avoid it, may be called as:
Declining Demand (3) Negative Demand
Overfull Demand (4) Distractive Demand

109
When the Companies pay less attention to its own costs or demands and bases
its price largely on competitors‟ prices, then it is known as:
Value pricing (3) Image pricing
Going rate pricing (4) Psychological pricing

from the given columns which of the combinations best describe the
concepts of product hierarchy?
Need family
Product family
Product class
Product line
The core need that underlines the existence of a product family
Group of items within a product line that share one of several possible forms
of the product
Group of products within the product family recognized as having a certain
functional coherence
All the product classes that can satisfy a core need with reasonable
effectiveness
Code:
Only (a) - (i), (b) - (iv) and (c) - (iii) are correct
Only (a) - (i), (b) - (iii) and (c) - (iv) are correct
Only (b) - (iv), (c) - (iii) and (d) - (ii) are correct
(a) - (i), (b) - (iii), (c) - (ii) and (d) - (iv) are correct

JUNE 2015

What are the four main components of holistic marketing?


Integrated Marketing, Internal Marketing, Product Positioning and
Performance Marketing
Integrated Marketing, Relationship Marketing, Social Marketing and
Performance Marketing
Relationship Marketing, Integrated Marketing, Internal Marketing and
Performance Marketing
Relationship Marketing, Integrated Marketing, Internal Marketing and
Social Marketing

110
Which of the following category of goods and services is most likely to
require an aggressive use of the selling concept?
Complementary Goods (3) Specialty Goods
Luxury Goods (4) Unsought Goods

The type of marketing that is the most recent to emerge is:


Person marketing (3) Services marketing
Product marketing (4) Social marketing

According to the theory, marketers can enhance demand for


a product by associating it with strong drives, using motivating cues and
providing positive re-enforcement.
Demand theory (3) Psychological theory
Learning theory (4) Two-factors theory

The most scientifically valid research is:


Experimental Research (3) Focus-Group Research
Observation Research (4) Survey Research

Which of the following statements is not correct?


Product Layout generally has continuous and Mass Production, mainly
assembly function.
Process Layout generally has Intermittent, Job-Shop, Batch Production, mainly
fabrication function.
Product Layout usually has general purpose equipments.
Process Layout is generally driven by fluctuating demand.

DEC 2014
Which of the following concepts holds that consumers prefer the
products which are easily available and are inexpensive?
(A) The product concept (B) The production concept
(C) The selling concept (D) The marketing concept
is the added value endowed to a product or service.
Brand equity (C) Brand loyalty
Brand image (D) Brand preference

111
Match the items/persons included in List – I with the items in List – II and
indicate the correct pairing through codes given below:
List – IList – II
CCI i. Consumer buying decision process
Cognitive dissonance ii. Marketing Myopia
Everett M. Rogers iii. Diffusion of Innovation
Theodore Levitt iv. iv. Predatory Pricing
Codes:-
a b c d
(A)iv iii ii i
iii iv ii i
i ii iv iii
iv i iii ii
The step after „concept testing‟ in the new product development process is
(A) Business analysis(B) Marketing strategy development
(C) Product development(D) Test marketing

When the total market expands, the usually gains the most.
Market challenger
Market leader
Market follower
(D)Market niche

June 2014
In the model of consumer adoption of new products developed by Everitt
M. Rogers, the first category of people to adopt a new product is called:-
Early Adopters
Initial Adopters
First users
Innovators

PepsiCo used to enter the Indian market in the early 1980s.


(A) Mega marketing (B) Meta marketing
(C) Micro marketing (D) Multistage marketing

112
Pricing decisions are most complex at which stage of the product life cycle?
(A) Decline stage (B) Growth
(C) Introduction (D) Maturity

Branding seeks
To differentiate the product
To charge differential price
To sell the product in different countries
To give attractive name to a product

The most widely used method of collecting the primary data is


(A) Experimental Research (B) Observation Research
(C) Statistical Research (D) Survey Research

Dec 2013

Which of the following is direct marketing?


Face to-face marketing
Catalogue marketing
Direct mailing
Test marketing

In marketing research, primary data can be collected through


Observational Method
Survey Method
Experimental Method
All of the above

Holistic marketing does not include


Internal Marketing
Integrated Marketing
Performance Marketing
Financial Marketing

Which of the following is not a distinctive characteristic of services?


(A) Transparency (B) Intangibility

113
(C) Inseparability (D) Perishability

To remain dominant, a market leader looks for


Ways to expand total market demand
Attempting to protect its current share
Increasing its market share
all of the above

Consider the names of organizations/persons listed in List – I and their


role/functions given in List – II:
List – I List – II
Bureau of Indian
Standards (BIS) i. Measurement of Service quality
Zeithmal, Parasuraman and Berry ii. Measurement of quality of Educational
service
ISO iii. Standardization and quality control of
Manufacturedgoods
National Assessment and accreditation Council iv. Quality marking and
Certification of standards
Indicate the correct matching:
Codes:
abcd
i ii iii iv
ii iii iv i
iv ii iii i
iii i iv ii

SEPT 2013
A deliberate and careful choice of organization, product, price
promotion, place strategies and policies best define the concept of
Marketing Mix
Product Mix
Market Penetration
Market Segmentation

114
Rational motives in buying process are explained as
Motives based on careful, logical reasoning and self-acceptance.
Motives based on sensual satisfaction, fear and entertainment.
Activity buyer adopts to satisfybuying needs.
All of the above.
Which of the following combination, according to hierarchy of effects model is
correct?
Awareness – Liking – Knowledge – Conviction – Preference – Purchase.
Awareness – Knowledge – Liking – Preference – Conviction – Purchase.
Awareness – Liking – Knowledge – Conviction – Purchase – Preference.
Awareness – Preference – Knowledge – Liking – Preference – Purchase.
This consists of two lists of statements or terms and the candidate has to match
an item in one list with an item in the other.
List – I List – II
(Statement) (Terms)
Brands which are evaluated for the purchase decision. 1. Consideration
set
Brands which are considered by the buyer for evaluation. 2. Evoked set
Brands which are disliked and avoided. 3. Inept set
Brands which the buyer is aware but is indifferent towards it. 4. Inert set
Codes:
I II III IV
(A) 2 3 1 4
(B) 1 2 3 4
(C) 2 1 3 4
(D) 2 1 4 3
48.“Marketing concept is the recognition on the part of management that all
business decisions at the firm must be made in the light of customer needs and
wants, hence that all marketing activities must be under one
115
supervision and that all activities of a firm must be coordinated at the top in the
light of market requirements.”
Who said it?
Lazo and Carton
Schwartz G
King RL
C.P. McNamara

JUNE 2013
What kind of pricing strategy a firm should normally follow for marketing
electronic goods?
Penetration pricing strategy
Skimming pricing strategy
Cost plus pricing strategy
All of the above
Note:- The answer for the question is not given by UGC
Which fact is true about on-line marketing?
A website which is user-friendly.
A website which is user-friendlyand regularly updated.
A website which is user-friendly regularly updated and make product‘s
graphical image available.
A website which is user-friendly, regularly updated, provides product‘s
graphical image and product‘s price is competitive.
Which of the following function involved under marketing
management‟s function?
Collection of market information
Marketing coordination
Marketing controlling
All the above

116
Codes:
(A) 1 & 2
(B) 2 & 3
3 only
4 only
Two statements are given below:
Statement – I: Product concept of marketing holds that consumers would favor
those products that are available and highly affordable.
Statement – II: Production concept of marketing holds that consumers would
not buy enough of the company‟s product unless the company undertakes
a substantial promotional effort.
Choose the correct option from the four options given below:
Statement I is correct and II is wrong.
Statement II is correct and I is wrong.
Both statements are correct.
Both statements are wrong.
Match the following:
List-I List-II
Differentiation 1. How familiar and intimate consumers are with the brand.
Esteem 2. The degree to which a brand is seen as different from
others.
Relevance 3. How well the brand is regarded and respected.
Knowledge 4. The breadth of a brand‘s appeal.
Codes:
abcd
(A) 1 2 3 4
(B) 2 3 4 1
(C) 3 4 1 2

117
(D) 4 3 2 1

DEC 2012
„Marketing is a human activity directed at satisfying needs and wants through
Exchange process‟; is the statement of
Cundiff ad Still
Kenneth Andrews
Philip Kotler
Kishwar S. Kan
Promotion mix includes
Advertising, publicity, personal selling and sales promotion
Physical attributes, brand, package and product life cycle
Brand name, product benefits, delivery and credit
Transportation, material handling, packaging and customer service
Which of the following is not the stage of product life cycle?
Introduction
Growth
Market segmentation
Decline
Which is the basic form of Innovation?
Introduction of novel production process
Improvement and development of existing process
Improvement and development of existing firm
All of the above
The scientific system of collecting and analysis of data pertaining to market is
known as
Production Research
Advertising Research

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Marketing Research
None of the above

JUNE 2012
Which of the following statement is true?
The essence of marketing is a transaction of an exchange.
Marketing–orientation is philosophy, which has to pervade the
organizationstructure
Marketing is also a managerial function involving analysis, planning and
control marketing activities in an organization
All of the above
A marketing plan is composed of three basic components, namely
1. Objectives 2. Policies
3. Program 4. Procedure
5. Hints 6. Decision
7. Command 8. Periodic
9. Diversity
1, 2 and 3 only
6, 7 and 8 only
5, 7 and 9 only
2, 3 and 9 only
Which of the following is not the stage of new product development?
Idea Generation
Business Analysis
Test Marketing
Market Segmentation

Marketing research does not normally

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Gather environmental information
Provide a continuous source of information
Relate to all aspects of marketing operations
Describe the current situation
Which of the following is not included in 7 P‟s of services marketing?
Physical evidence
People
Process
Marketing plan

DEC 2011
It is a set of procedures and sources used by managers to obtain everyday
information about developments in the marketing environment.
It is known as
Internal Records System
Marketing Intelligence System
Marketing Research System
Marketing Decision Support System
Match the List – I with List – II:
List – I List – II
(Stage of the product life cycle) (Marketing strategy applied in the
stage of the product life cycle)
Introduction Stage 1. Market Modification
Growth Stage 2. Rapid Skimming Strategy
Maturity Stage 3. Enter New Market Segments
Decline Stage 4. Continuation Strategy
Codes:
I II III IV
(A) 3 2 4 1
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(B) 2 3 1 4
(C) 2 3 4 1
(D) 4 2 1 3
It has been described as a cluster of complementary goods and services that are
closely related in the minds of consumers but are spread across a diverse set of
industries. It is known as
Market Place
Market Space
Meta-Market
Marketing Mix
Company‟s ability to provide individually differentiated product for each
consumer is called as
Digitalization
Disintermediation
Customerization
Connectivity
The qualitative value of an exposure through a given medium is related to
Reach
Frequency
Impact
All of the above
Note:- Answer for the question is not given by UGC

JUNE 2011
Arrange the following steps of a five-stage model of the consumer buying
process:
Evaluation of Alternatives
Need Arousal

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Information search
Purchase Decision
Post Purchase behavior
Code
IV, II, III, I, V
III, II, I, IV, V
I, II, IV, III, V
II, III, I, IV, V
It refers to the total number of items in the Product Mix. It is known as
following.
The width of product mix
The length of product mix
The depth of product mix
The consistency of product mix
Given below are two statements, one labeled as Assertion (A), and the other
labeled as Reason (R). State the correct answer from code given below.
Assertion (A): Pure-click companies can be search engines, Internet service providers,
commerce sites, transaction sites, content sites and enabler sites.
Reason (R): Pure-click companies are those companies that have launched a
website without any previous existence as a firm.
Code:
(A) is correct, but (R) is wrong.
Both (A) and (R) are correct.
(A) is wrong, but (R) is correct.
Both (A) and (R) are wrong.
Match List-I and List-II. List
– IList – II

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(Characteristics of Services) (Marketing Strategy applied
considering a characteristic of service)
Intangibility 1. Preparing a service blue
print showing each service and process in a flow chart.
Inseparability 2. Tangiblize the intangible
Variability 3. To train more service providers and build up
client confidence.
Perishability 4. Use differential pricing
Code:
I II III IV
(A) 2 1 3 4
(B) 2 3 1 4
(C) 1 3 2 4
(D) 2 1 4 3
A diverse collection of incentive tools designed to stimulate quicker buying of a
particular product or service by consumers or the trade is known as
Advertising
Personal selling
Publicity
Sales promotion

DEC 2010
Which of the following is not the element of promotion-mix?
Advertising
Place
Personal selling
Publicity
Which of the following is in correct order?

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Product, Place, Promotion and Price
Product, Promotion, Place and Price
Product, Price, Promotion and Place
Product, Price, Place and Promotion
Which of the demographic variables is not used by marketers for demographic
segmentation?
(A) Gender (B) Age
(C) Occupation (D) Poverty
At which stage of the new product development, the launching of new product
will take place
Business Analysis
Test Marketing
Commercialization
Marketing strategy Development
If a company uses its company name for its entire range of products offered,
then it is called
Private branding
Corporate branding
Product-line branding
Specific product branding
One-level channel of distribution consists of
Producer – consumer
Producer – dealer – consumer
Producer – dealer – retailer – consumer
Producer – dealer – wholesaler – retailer – consumer

JUNE 2010
Which of the following is not included in 7 P‟s of services marketing?
(A) Process (B) People
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(C) Pricing (D) Public relations
Which of the following is not a stage in the new product development?
Generation of ideas
Business analysis
Market segmentation
Test marketing
Industrial marketing involves
Business to Business
Business to Customer
Customer to Customer
Retailer to Consumer
The concept of Marketing Myopia is propounded by
Philip Kotler
C.K. Prahalada
Peter Drucker
Theodore Levitt
In which stage of product life cycle, the company takes decision whether to
maintain, harvest or drop the product?
(A) Introduction (B) Growth
(C) Maturity (D) Decline
Which of the following is the best technique to manage the existing products?
Ansoff Matrix
Balanced score card
BCG Matrix
Product life cycle analysis

125
DEC 2009
Who coined the term 4 Ps?
(A) Philip Kotler (B) Stanton
(C) Peter Drucker(D) McCarthy
In the buying decision process, what is the term used for a person who first
suggests buying the product?
(A) Consumer (B) Decider
(C) Initiator (D) Influencer
Which of the following is in order?
Product, place, price and promotion.
Price, product, promotion and place.
Promotion, place, product and price.
Product, price, place and promotion.
Which of the demographic variable is not used by marketers for demographic
segmentation?
(A) Income (B) Gender
(C) Family life cycle (D) Poverty
Which of the following indicates the distinction between Advertising and
Publicity?
Advertising is expensive, publicity is less expensive.
Advertising is through T.V., publicity is through print media.
Advertising is a paid form of communication;Publicity is not a paid form of
communication.
Advertising is through film stars, Publicity is through cricketers.
Which of the following order about product life cycle is correct?
Introduction, Maturity, growth and decline.
Introduction, growth, maturity and decline.
Introduction, decline, maturity and growth.

126
Growth, maturity, decline and introduction.
Companies that attack other firms including market leader in an attempt to build
market share are called
(A) Market followers (B) Market challengers
(C) Market penetrators (D) Market Nichers

JUNE 2009
Changes in the population characteristics such as age, gender, race, marital
status, income and education are the examples of:
Geographic characteristics (C) psychographic characteristic
Cultural characteristics (D) demographic characteristics
Which of the following is not constituent of promotion-mix:
Advertising (C) Direct marketing
Sales promotion (D) Publicity
Which of the following factors does not influence the pricing strategy of a firm?
Market (C) Cost
Competition (D) R&D
Who coined the term Marketing Myopia?
Peter Drucker (C) Philip Kotler
Stanton (D) Theodore Levitt
In the diffusion of innovation who are the people not willing to try out the
product?
(A) Innovators (B) Progressive people
(C) Early adopters (D) early majority
Which of the following is not a variable for segmenting the market?
(A) Sex (B) Age (C) Income (D) Sales
At which stage of new product development process, the launching of new
product will take place:

127
(A) Concept development (B) Marketing strategy development
(C) Test marketing (D) Commercialization

128
Unit VI:-Production Management
Role and Scope of Production Management:- Facility Location: Layout
Planning and Analysis , Production Planning and Control, Production Process
Analysis, Demand Forecasting for Operations, Determinants of Product Mix,
Production Scheduling, Work Measurement, Time and Motion Study, Statistical
Quality Control, Role and Scope of Operations Research, Linear Programming,
Sensitivity Analysis, Duality, Transportation Model, Inventory Control,
Queuing Theory, Decision Theory, Markov Analysis, PERT/CPM.

Nov 2017
Statement (I): Time study is an area of study whose fundamental purpose is to
set time standards for work using different methods.

Statement (II): Work measurement is a structured process of directly observing


and measuring (using a timing device) human work in order to establish the
time required for completion of the work by a qualified worker when working at
a defined level of performance.

Code:

Both the Statements are correct.

Both the Statements are incorrect.

Statement (I) is correct while Statement (II) is incorrect.

Statement (I) is incorrect while Statement (II) is correct.

Which one of the following combinations of the characteristics of the popular


layouts is not matching?

Factors Fixed Product Process Cellular


Layout Layout Layout Layout
(1) Material Fixed Path Variable Often high Variable
Travel Path Path path
(2) Process Ship Continuous Job or Small to
Building and small medium
Repetitive Batch batch
(3) Product Made to Standardized Diversified Diversified
order, low Product products products
volume using

129
common
operations
(4) Utilization Moderate Very high General High
of facilities Purpose
Ans. Option 1
In the context of distinguishing between forecasting and prediction, which one
of the following statements is false?
Forecasting is based on a theoretical model while prediction may be based on
intuition.
Forecasting reflects management‘s judgment after taking all available
information into account; while prediction involves the projection of the past
into the future.
Error analysis is possible in the case of forecasting while no error analysis is
done in the case of prediction.
No objectivity is found in the case of prediction.
An activity that consumes no time but shows precedence among activities is
known as:
(1) Slack activity (2) Successor activity
(3) Dummy activity (4) Critical activity
Which one of the following is not correct matching between level of facility
planning and type of activity?
Global level and site location and selection
Macro layout level and Site planning
Micro layout level and Cell design
Sub - Micro layout level and work station and Cell design

Jan 2017
Match the items of List – I with the items of List – II and select the code of
correct matching with regard to forecasting models for operations:
List – IList – II
(Model Type (name)) (Description)
Delphi technique i. Causal quantitative model

130
Economic modeling ii. Quantitative model (Naive)
Exponential Smoothing iii. Qualitative model
Codes:
a b c
i ii iii
iii i ii
iii ii i
ii iii i
In which one of the following situations, a product-oriented layout is
appropriate?
A medical clinic
An automated carwash
A work Centre for welding, heat treating and painting
A home plumbing repair business.
A graphic tool to trace the interaction of several workers with one machine is
termed as
(1) Gang process chart (2) Flow process chart
(3) Activity chart (4) Operation chart
Which one of the following is a technique of statistical quality control used for
product control?
(1) R-chart (2) Sampling plan
(3) np-chart (4) control-chart
The decision-criterion in which a decision-maker selects an alternative that
maximizes H (criterion of realism) = [a × (maximum in column)] + [(1
a) × (minimum in column)] is called
(1) Laplace criterion (2) Hurwicz criterion
(3) Wald‘s criterion (4) Bayesian criterion

131
July 2016
Statement – I: Operation research is the application of scientific methods to the
study of alternatives in a problem situation with a view to providing qualitative
basis for arriving at an optimum solution in terms of goal sought.
Statement – II: Operation research is a quantitative commonsense
embracing observation, experiment and reasoning.
Codes:
(I) is correct but (II) is incorrect.
Both (I) and (II) are correct.
Both (I) and (II) are incorrect.
(II) is correct but (I) is incorrect.
Match the items of List – I with List – II:
List – I List – II
PERT i. Strategies
CPM ii. Events
Game theory iii. Network
Codes:
abc
i ii iii
ii iii I
iii ii i
iii i ii
Statement – I: – X-chart, np-chart and R-chart are the techniques used for
product control under Statistical Quality Control.
Statement – II: Operating characteristic curve helps determine whether a
particular acceptance sampling plan meets both the product‟s and the
consumer‟s risk requirements.
Both the statements are correct.

132
Both the statements are incorrect.
Statement – I is correct while Statement – II is incorrect.
Statement – I is incorrect while Statement – II correct.
Statement – I: When there are a large number of decision variables (more than
three) and constraints, iterative mathematical procedures like simplex method
can be used for product-mix decisions.
Statement – II: Monte Carlo is an approach for simulating the probability distribution
by associating and then selecting random numbers.
Both the statements are correct.
Both the statements are incorrect.
Statement – I is correct while Statement – II is incorrect.
Statement – I is incorrect while Statement – II is correct.
In the context of work study, an element is rated as 120% and the actual
readings (in minutes) are as under: 0.05, 0.06, 0.05, 0.05, 0.05, 0.06, 0.06, 0.05,
0.06, 0.06, what is the normal time for the element?
(1) 0.055 minutes (2) 0.060 minutes
(3) 0.066 minutes (4) 0.052 minutes

Dec 2015
An input (such as variable cost per unit or fixed cost) for a model is an example
of a(n) ?
Stochastic variable (3) Algorithm
Decision variable (4) Parameter
Match the items of List I and List II and indicate the correct code: List I
List II
Operations Management Functions Activities
Capacity planning (i) Setting policy guidelines and
procedural details of making a watch
Quality Management (ii) the steering of the cars loaded in trucks
reaches the assembly line every morning and evening

133
Process Design (iii) Establishing rules and policies of which tablets are to be
accepted and others not to be
Location and Layout of (iv) A hospital can largely serve 500
patients at any time facilities
Code:
(a) (b) (c) (d)
(1) (iv) (iii) (i) (ii)
(2) (iv) (i) (iii) (ii)
(3) (ii) (iii) (i) (iv)
(4) (ii) (i) (iii) (iv)
Car enters the drive-through of a fast food restaurant to place an order, and then
it proceeds to pay for the food, and pick up the order. This is an example of:
(1) A multiphase system (2) a multichannel system
(3) Amultiguaue system (4) a multiphase and multichannel system
A manufacturer is considering five alternative locations for setting up its
factory. Using the information given in the table obtain a ranking and tell the
best location for setting the factory?
Table:
Factors Relativ Locatio Locatio Locatio Locatio Locatio
e n 1 n n n n
Weight 2 3 4 5
Availability 0.28 20 40 55 35 60
of
Infrastructur
e
Size of 0.18 30 30 80 60 40
Market
Industrial 0.15 80 30 50 60 50
Relation
Tax Benefits 0.09 80 20 20 20 10
Availability 0.09 70 70 50 50 45
of cheap
Labor
Nearness to 0.20 20 40 60 50 90

134
port
Code:
Location 2 (3) Location 4
Location 3 (4) Location 1 and Location 5
If the project completion time is normally distributed and the due date for the
project is greater than the expected completion time, then the probability that
the project will be finished by the due date is:
Undeterminable without more information
less than 0.50
Equal to 0.50
Greater than 0.50

June 2015
Which of the following statements is not correct?
Product Layout generally has continuous and Mass Production, mainly
assembly function.
Process Layout generally has Intermittent, Job-Shop, Batch Production, mainly
fabrication function.
Product Layout usually has general purpose equipment.
Process Layout is generally driven by fluctuating demand.
Six-SIGMA quality indicates:
2.4 defects per thousand (3) 3.4 defects per thousand
2.7 defects per thousand (4) 3.7 defects per thousand
A manufacturing firm has four work stations, A, B, C and D in series with
individual capacity of processing 450, 390, 360 and 400 units per day
respectively and the actual output of the firm is 306 units per day. The system
capacity and system efficiency of the firm shall respectively be:
(1) 400 and 100% (2) 450 and 120%
(3) 360 and 85% (4) 390 and 95%
In the simplex method of solving an LP Problem, the product-mix column of the
initial solution contains:

135
Artificial variables only (3) Slack and artificial variables only
Slack variables only (4) Real variables only
If the optimal solution of an LP Problem is degenerate then:
The problem has multiple optimal solutions
The solution is not feasible
The solution is useless to the manager
None of the above

Dec 2014
„Large output per unit of space‟ is an orientation of which type of plant layout?
(A) Product layout (B) Process layout
(C) Fixed-Position layout (D) Cellular layout
Which of the following steps is the first step in production scheduling?
(A) Sequencing (B) Loading
(C) Expediting (D) Classifying
A defense equipment manufacturing company uses bolts at a constant rate of
10000 kg per year. The bolt cost ` 80 per kg and the company estimates that it
costs ` 400 to place an order and the carrying cost of inventory is 10 percent per
year. How frequently should orders for bolts be placed?
(A) 5 (B) 10
(C) 15 (D) 20
The number of allocated cells in the optimal solution table of a transportation
problem having m origins and n destinations is
m+n–1
m + n –1 or more
m + n –1 or less
m+n

136
The co-efficient of artificial variable in a Maximization problem of LP is
M
–M
0
1

June 2014
If the EOQ for an item of inventory in a firm is 1000 units, the estimated
demand for the term next year gets doubled, what shall be the revised EOQ next
year, all other relevant costs remaining unchanged?
(A) 1000 (B) 1414
(C) 2000 (D) None of the above
From the following two statements, choose the correct answer:
Statement I: A person can have one utility curve for one situation and a quite
different one for the next situation.
Statement II: Business executive with a linear utility curve can effectively use
the expected monetary value as their decision criterion.
Codes:
Statement I is true, but II is false.
Statement I is false, but II is true.
Both the Statements I and II are true.
Both the statements I and II are false.
Which of the following is not included in the Five-p model of transformation
organization used in the Production and Operations
Management?
(A) People (B) Plant
(C) Production (D) Programmes
Demand forecasting through “Survey of Buyer‟s Intentions” is not suited for
which type of products?
(A) ‗Convenience goods‘ (B) Industrial products

137
(C) New products (D) Consumer durables
The names of certain reputed authors and their works are listed in the following
lists. Match the names and their works in the correct order:
List – I List – II
ElwoodS. i. A BehavioralBuffa and Theory of the RakeshK.FirmSarin
RichardM. ii. Introduction to Cyert and operations James EMarch
research
Martin K. iii.Production and Starr and Operations D.W. Miller
Management
J.M. Juran iv. Quality Control Handbook
Hillier and v. Inventory Leiberman Control: Theory and Practice
Codes:-
a b c d e
i ii iii iv v
ii iii iv v i
iii iv i ii v
iii i v iv ii

Dec 2013
Consider the names of organizations/persons listed in List – I and
their role/functions given in List – II:
List – I List – II
a. Bureau of i. Measurement of i. Measurement of
service quality
Indian Service quality Standards (BIS)
B.ZeithmalParasuramanand Berry ii. Measurement of quality of
educational service
ISO iii. Standardization and quality
control of manufactured goods
National Assessment and Accreditation Council iv. Quality marketing
and Certification of standards
138
Indicate the correct matching:-
Codes:-
a b c d
i ii iii iv
ii iii iv i
iv iiiii i
iii iv i ii
In Linear Programming, which one of the following cases is not a type of
sensitivity analysis?
(A) Model building (B) Objective-function ranging
(C) Pricing out (D) Right hand-side ranging
The upper control limit for an X chart, with n = 9, Mean = 26.7, R = 5.3 and d2
= 2.970, is
(A) 24.9 (B) 26.11 (C) 27.29 (D) 28.48
The additional cost of shortening an activity by one unit of time is
(A) Cost slope (B) Crash cost (C) Crash time (D) Least cost
Which method is least suited for forecasting the demand of a new product?
(A) Survey of Buyers‘ Intentions (B) Composite Opinions of Sales
Force
(C) Test Marketing(D) Time-Series Analysis

Sept 2013
Which one of the following is not a qualitative forecasting method?
Educated guess
Executive Committee Consensus
Delphi method
Linear regression method

139
Statement I: Mean (X) chart do not give the desired result about process
variability.
Statement II: Range (R) chart monitors process variability.
Statement I is correct, but Statement II is false.
Statement II is correct, but Statement I is false.
Both Statements I and II are correct.
Both Statements I and II are false.
Which one is not a part of control charts for attributes?
(A) P-chart (B) f-chart
(C) np-chart (D) c-chart
There are different phases in a Operations Research Project. They are
(i) Research phase (ii) Action phase (iii) Judgment phase
The correct sequence of these phases is
(A) (i), (ii), (iii)
(B) (iii), (i), (ii)
(ii), (iii), (i)
(iii), (ii), (i)
The Graphical method can be used to solve
A Linear Programming Problem (LPP) with all integer data.
A LPP with two decision variables.
Any LPP.
A transportation problem with two origins and two destinations.

June 2013
Work measurement refers to
The length of time it takes to complete a work task assigned to a specific job.
Improving work methods.

140
Arrangement of machines according to operations.
Planning the work and working for the plans.
Facility planning includes
Determination of production capacity
Determination of production facilities location
Determination of the layout
All the above
Match the following:
For fraction or proportion of defects 1. R-chart
For number of defects 2. C-chart
For number of defects for unit3. nP-Chart
For monitoring process variability 4. P-Chart
a b c d
(A) 1 2 3 4
(B) 4 3 2 1
(C) 2 1 4 3
(D) 3 4 1 2
Statement – I: One of the major causes of the industry for larger capacity is the
argument that large facilities facilitate greater economies of scale. But the major
concern for building big capacity is that funds will be tied up or scarcity of
funds.
Statement – II: A viable alternative to larger capacity production facilities is to
develop sub-contractor and supplier networks.
Both statements I & II are correct.
Both statements I & II are false.
Statement I is correct and II is false.
Statement II is correct and I is false.

Dec 2012

141
Which one of the following is not the function of Production
Management?
Production, Planning and Control
Procurement of Raw Materials
Market Intelligence and Survey
Plant Location and Layout
Time study refers to
Developing a standard time to do a particular task
Improving work methods
Value analysis
Value engineering
Acceptance Quality level is
Maximum number of defectives that the consumers will accept
Fraction defective(s) that the consumer considers acceptable
Fraction defective(s) that the producer considers acceptable
Maximum number of defectives that the producer will allow
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
The critical path of a network is
For which earliest start time and latest start time are same
The shortest time path through a network
For which earliest finish time and latest finish time are same
The longest time path through a network

June 2012
Which of the following is not the type of Plant Layout?
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Product Layout
Process Layout
Fixed Position Layout
Residential Layout
Which of the following factor is considered in the selection of a plant location?
Source of Raw-materials
Availability of water
Marketing facilities
All the above
Work measurement refers to
The length of time it takes to complete a work task assigned to a specific job
Improving work methods
Arrangement of machines according to sequence of operations
Planning the work and working the plans
The Graphical method can be used to solve
A linear programming problem with all integer data base.
A linear programming problem with two decision variables.
Any linear programming problem.
A transportation problem with two origins and two destinations.

Dec 2011
When work stations are arranged according to the progressive steps by which
the product is produced, it is called a
Functional layout
Process layout
Job shop layout
Product layout

143
If for a demand process suited to a = 0.1 we try to fit a forecasting procedure
with a = 0.3, the forecast will
Show large swings up and down
Follow the demand better, consequently reducing forecast errors
Show a pronounced behavior
None of the above

CRAFT considers exchanges of locations for those departments which


Have the same area
Have a common border
Either (A) or (B)
Have same costs per unit of distance
If the ordering costs are over-estimated by 50 percent and carrying costs are
under-estimated by 50 percent, the total annual cost will exceed the optimum
cost by
73.2 per cent
50 per cent
0 per cent
150 per cent
PERT/CPM network analysis can be used for
Project appraisal
Project implementation
Project monitoring and control
All of the above

June 2011
Which of the following departments is not directly affected by the facilities
location decision?

144
Production / operations
Marketing
Personnel
Finance
Ship building and construction of dams and bridges are typical examples of
Fixed position layout
Functional layout
Product layout
Project type layout
If unit item cost = Rs. 10, monthly carrying charge = 3 per cent, monthly
demand = 100 units and ordering cost = Rs. 20 per order, the EOQ is:
(A) 11.45
(B) 400
(C) 115.4
(D) 33.3
In managing a project, a network is better suited than Gantt chart because
It can be updated more easily
It clearly brings out the interdependencies between the different activities
Both (A) and (B)
None of the above
The aggregate production plan spans
Short time horizon
Intermediate time horizon
Long time horizon
None of the above

145
Dec 2010
The primary role of a production manager is
To meet the production target and delivery schedule
To produce goods/services of right quality
To produce goods/services by right quantity at the predetermined time
All of the above
Fixed Position Layout is used when
The operation requires heavy tools and equipment.
The operation requires only hand tools and simple equipment.
The continuity of production process is to be maintained.
None of the above
Critical Path Method (CPM) is concerned with estimation of
Optimistic time
Production lead time
Pessimistic time
None of the above

June 2010
Which of the following is not an element of production management?
(A) Plant (B) Profit
(C) Process (D) People
Production Management Tactical Planning decisions include
Establishing parameters for measuring operational efficiency and
productivity.
Establishing quality specifications and test details.
Determining starting and finishing time of each job in the work stations.
None of the above
Work study refers to
146
Analysis of work into smaller parts followed by re-arrangement of these parts to
give the same effectiveness at lesser cost.
Analytical investigation of the methods involved in the work.
Developing new methods to give work effectiveness.
All of the above
Economic lot size is known as
The lot size for which the total cost per time period is minimum.
The ordering cost and carrying cost are minimum.
The lot size that strikes a balance between ordering cost and carrying cost.
The quantity to be ordered each time is fixed.
Objective of Value Engineering is
Reduce cost without reducing the quality.
Increase value without increasing the cost.
Reduce cost by reducing the quality.
None of the above

Dec 2009
Tactical production planning decision includes
(A) Layout planning (B) Machine loading
(C) Production process (D) Plant location
Which of the following is not to be considered for plant location decision?
(A) Availability of labor (B) Availability of power
(C) Availability of raw material (D) Brand image

Moving average forecasting is used to


Establish the trend of the past
Forecast the current demand

147
Forecast market competition
Forecast Quasi demand
Work measurement is essential for
Labor utilization and efficiency
Determining the delivery dates
Introducing financial incentive schemes
All of the above
EOQ refers to the quantity for which
Fixed cost is equal to variable cost
Carrying cost is equal to ordering cost
Average cost is equal to marginal revenue
Total contribution minus cost of goods

June 2009
Strategic production planning decisions include:
Quality development(C) Manpower planning
Make or Buy decision (D)Layout planning
Which one of the following is not the type of Plant Layout?
Process Layout (C) Fixed position Layout
Product Layout (D) Selection Layout
Production control is concerned with:
Establishment of Quality Standard norms
Execution of production plan
Expediting the production process
Product Quality control
Critical Path Method network analyses is done with the objective of:
Determining the completion time for the project

148
Determining the product quality
Determining the production cost
Determining the pay-back period
Q systems of inventory control provides for:
Ordering the inventory when it normally equals to EOQ
Ordering the inventory depending on the stock level on hand
Optimization of inventory costs
None of the above
Note:- Answer for the question is not given by UGC

149
Unit VII:-Advance Statistics and MIS
Probability Theory Probability Distribution- Binomial, Poisson, Normal and
Exponential, Correlation and Regression Analysis, Sampling Theory, Sampling
Distributions, Tests of Hypothesis, Large and Small Samples, t, z , F, Chi-
square Tests, Use of Computers in Managerial Applications, Technology Issues
and Data Processing in Organizations, Information Systems, MIS and Decision-
making, System Analysis and Decision, Trends in Information Technology,
Internet and Internet based Applications, Design.

Nov 2017
Which one of the following statements is false?
Sample space refers to the collection of all favorable outcomes of an
experiment.
Collectively exhaustive events are those whose union is sample space.
All the outcomes of an experiment are known as sample space.
Two events are said to be independent if the happening of one does not affect
the probability of happening of the other.
Which one of the following is a false statement?
A binomial distribution involves infinite number of trials
The mean and the variance of a Poisson distribution are equal
The standard normal distribution has μ=0 and s=1
The standard deviation of an exponential distribution is equal to its mean
In the context of coefficient of correlation (r), match the items of List - I with
the items of List - II and select the code of correct matching:
List - I List – II
1- r²
√n i. Probable error of r

b. (0.6745)1- r²
√n ii. Coefficient of determination

r² iii. Standard error of r


Code:-

150
a b c
ii i iii
iii ii i
ii iii i
i ii iii
Which one of the following statements is true?
If one of the regression coefficients is greater than one, the other must also be
greater than one.
The product of the two regression coefficients is always more than one.
Correlation coefficient is the arithmetic mean of the two regression coefficients.
The signs of the two regression coefficients are always the same.
In the absence of which of the following, SPSS can be used as an alternate?
MS Word
MS Excel
MS Access
MS Datapro

Jan 2017
Which one of the following expressions relates to an event which represents the
occurrence of either A or B or both?
(1) A ∪ B (2) A ∩ B
(3) ⁻ ⁻ A ∩ –⁻ ⁻ B (4) (A ∩ –⁻ ⁻ B) ∪ (⁻ ⁻ A ∩ B)
A Bernoulli process has all but which one of the following properties?
Each trial has two possible outcomes.
The probability of a success on any trial remains fixed over time.
The probability of success on any trial is equal to the probability of
failure.
Trials are statistically independent.

151
Statement – I: The product of coefficient of correlation, standard deviation of
variable „X‟ and Standard deviation of variable „Y‟ gives the measure of
covariance between X and Y variables.
Statement – II: The product of coefficient of correlation between X and Y
variables and the ratio between standard deviation of X variable to standard
deviation of Y variable measures the slope of the regression line of X on Y
variable.
Codes:
Both the Statements are correct.
Both the Statements are incorrect.
Statement – I is correct while Statement – II is incorrect.
Statement – I is incorrect while Statement – II is correct.
Statement – I: Both the probable error and standard error of the coefficient of
correlation are different.
Statement – II: When a sampling distribution of mean is prepared by taking
small sized samples from a normally distributed population, the distribution
takes the shape of normal distribution.
Codes:
Both the Statements are correct.
Both the Statements are incorrect.
Statement – I is correct while Statement – II is incorrect.
Statement – I is incorrect while Statement – II is correct.
Which one of the following is not the major characteristic of internet?
(1) Open (2) Expensive
(3) Global (4) Untrusted

July 2016
Which of the following sentences are true?
The classical approach to probability theory requires that the total number of
possible outcomes be known or calculated and that each of the outcomes be
equally likely.

152
A marginal probability is also known as unconditional probability.
For three independent events, the joint probability of the three events, P(ABC)=
P(A) × P(B/A) × P(C/AB)
Two events are mutually exclusive, exhaustive and equally likely, the
probability of either event A or B or both occurring P(A or B) = P(A) + P(B)
Codes:
(i), (ii), (iii) and (iv) are true.
(iii) and (iv) are true.
(i), (ii) and (iv) are true.
(i) and (iii) are true.
Match the items of List – I with the items of List – II and indicate the code of
correct matching in connection with probability distributions:
List – I List – II
(Mean and Standard Deviations) (Probability Distribution)
np, √npq i. Normal Distribution

λ,√λ ii. Binomial Distribution

0, 1 iii. Poisson Distribution


Codes:-
a b c
i ii iii
iii i ii
iii ii i
i iii ii
A researcher wants to test the significance of the differences of the average
performance of more than two sample groups drawn from a normally
distributed population, which one of the following hypothesis- testing tests is
appropriate?
(1) Chi-square test (2) F-test
(3) z-test (4) t-test

153
Match the items of List – I with the items of List – II and indicate the code of
their correct matching with regard to correlation and regression analysis:
List – I List – II
γxyσy
σxi. Covariance between X and Y
b. Σ(X – –X) (Y – –Y)
n ⋅σx⋅σyii. Standard error of coefficient of correlation
c. Σ(X – –X) (Y – –Y)
n iii. Regression coefficient of Y on X
variable.
1 – γ2
√n iv. Karl Pearson‘s coefficient of correlation
Codes:-
a b c d
i ii iii iv
ii i iv iii
iii ii iv i
iii iv iii
Match the items of List – I with List – II:
List – I List – II
Stock files that are placed in warehouse as a record i. Daily report
Process of managing goods in most sensible way ii. Intranet
Management information system iii. Master file
Log-in allowed to only internal people iv. Stock control
Codes:-
abcd
iii iv iii
iv iii ii i

154
iii i iv ii
i ii iii iv

Dec 2015
Match the items of List – I with those of List – II and choose the correct code:
List – I
The probability of two events occurring together or in succession
The probability of occurring one event given that another event has occurred
The probability of occurring a single event
The probability revised in the light of additional information List –
II
Marginal probability
Posterior probability
Subjective probability
Joint probability
Conditional probability
Code:-
A b c d
iv v i iii
v iv ii iii
v iv iii i
iv v i ii
Consider the following statements relating to correlation and regression
analysis:
Statement I: Correlation is independent of change of scale, but not of origin
Statement II: Correlation denotes co-variability between the variables Statement
III: Regression is a relative measure of relationship between variables Statement
IV: Regression is independent of change of origin but not of scale

155
Choose the correct option:
Statements I, II and IV are correct
Statements II, III and IV are correct
Statements II and III are correct
Statements II and IV are correct
Which of the following is not a technology driver for an information system?
(1) Knowledge asset management (2) Enterprise applications
(3) Object technologies (4) Networks and internet
NegandhiEstafen‟ is recognized as a good model for the analysis of:
Organizational effectiveness
Management effectiveness
Organizational growth
Organization behavior
A self-contained internet program designed to be used in a specific environment
is:
(1) Active – X (3) Applet
(2) Application programme interface (4) Artificial intelligence

June 2015
If your score in an exam was 80, with a mean of 60, what would be the
standardized score for this exam if the standard deviation is 15?
(1) 1.33
(2) 1.25
(3) 1.52
(4) 1.72
Spurious relationship between two variables refers to:
(1) Very poor relationship between the variables.
(2) Statistically insignificant relationship between the variables.

156
(3) Relationship happens only due to third variable which is common to both
the variables.
(4) The relationship which is impossible to measure.
In a medical test, where the null hypothesis is: „The patient does not have the
disease‟ and the alternative hypothesis is: „ the patient has the disease‟.
Suppose a patient has a disease and needs treatment. In the hypothesis testing
process, which of the following errors is more serious than the others?
(1) Type - I error (3) Both Type - I and Type - II error
(2) Type - II error (4) r - error
Decision support system does not use:
(1) Analytical models
(2) Specialized databases
(3) File server
(4) Computer - based modeling process
Give the correct order of the stages in System Development.
(1) Testing---->Programming---->Systems----->Design---->Systems---->
Analysis---->Conversion---->Production and Maintenance
(2) Programming---->Testing---->Systems Analysis---->Systems Design ----
>Conversion ---->Maintenance
(3) Systems Analysis---->Systems Design---->Programming---->Testing ----
>Conversion---->Production and Maintenance
(4) Productionand Maintenance---->Testing---->Conversion-----
>Programming ---->Systems Design---->Systems Analysis

Dec 2014
If p = 0.6 for a particular Bernoulli process, the calculation ( 8! ) (0.6)5 (0.4)3
indicates 5!*3!
the probability of happening of
(A) 5 or more successes in eight trials
(B) 3 or more successes in eight trials

157
(C) Exactly 5 successes in eight trials
(D) Exactly 3 successes in eight trials
Chebyshev‟s theorem provides that at least 89% of the values will lie within
± 3 standard deviations from the mean for
(A) Bell-shaped distributions
(B) Positively-skewed distributions
(C) Negatively-skewed distributions
(D) All distributions
How many degrees of freedom should be used to apply chi-square test statistic
on a contingency table, having 5 rows and 4 columns?
(A) 20
(B) 12
(C) 7
(D) 9
The and its alternative provide the ability to serve dynamic
content to browsers.
(A) Common Gateway Interface
(B) Cryptography
(C) General Pocket Radio Service
(D) Cellular Digital Pocket Data
Which is the most suitable domain extension for an Indian NGO to do e
business?
(A) .gov
(B) .com
(C) .org
(D) .us

158
June 2014
What is the probability of a value, chosen from a population, is less than its
median?
(A) 1.0 (B) 0.75
(C) 0.50 (D) 0.25
If in a given Binomial distribution with „n‟ fixed and P < 0.5, then
(A) The Poisson distribution will provide a good approximation
(B) The Binomial distribution will be skewed to the left
(C) The Binomial distribution will be skewed to the right
(D) The Binomial distribution will be symmetric
What separates the physical aspects of data storage from the logical aspects of
data representation?
(A) Schema (B) Relationships
(C) Constraints (D) Data
The components of E-business model are
i. Web Server
ii. Web Master
iii. Internet
iv. Web Administrator
Codes:
(A) i, ii, iii & iv
(B) i, ii & iii
(C) i & iii only
(D) iii only
The simple probability of the occurrence of an event is called the
(A) Bayesian probability
(B) Conditional probability

159
(C) Joint probability
(D) Marginal probability

Dec 2013
In a hypothesis test, α = 0.05 and β = 0.10, the power of the test is
(A) 0.10 (B) 0.90
(C) 0.95 (D) 0.15
When performing a Chi-square hypothesis test, what happens when expected
frequencies in several cells are too small?
(A) Value of χ2 will be overestimated.
(B) The null hypothesis will be more likely to be rejected than it should be.
(C) The degrees of freedom are greatly reduced.
(D) (A) and (B), but not (C).
Under which situation, the method of „experimentation, modeling and
sensitivity analysis‟ is used to determine the information requirements of the
management?
(A) Total Uncertainty
(B) High Risk
(C) Low Risk
(D) Certainty
The technique(s) that can be used in data mining is/are:
(A) Non-linear Regression Methods
(B) Decision tree
(C) Neural networks
(D) All of the above
A Binomial distribution may be approximated by a Poisson
distribution, if:
i. „n‟ is large and „p‟ is large.
ii. „n‟ is small and „p‟ is large.

160
iii. „n‟ is small and „p‟ is small.
iv. „n‟ is large and „p‟ is small.
Codes:
(A) i, ii and iii
(B) ii only
(C) iii and iv only
(D) iv only

Sept 2013
A vendor can make a profit of Rs3,000 with a probability of 0.4 or make a loss
of Rs1,000 with a probability of 0.6. What is his expected profit?
(A) Rs600 (B) Rs800
(C) Rs1,000 (D) Rs500
If the sample size is less than 50, which non parametric test can be used to test
the independence of attributes?
(A) Chi-square test
(B) Fisher Irwin test
(C) Cochran Q test
(D) Kruskal Wallis test
Match the items given in List-I with most appropriate options given in List-II.
List – I List – II
(a) Centroid
Method (i) Multiple Regression
(b) Hierarchical Method (ii) Factor Analysis
(c) Relationship between a single metric dependent
and two or more independent variables (iii) MANOVA
(d) The main and interactive effects of categorical

161
variables on multiple dependent interval variables. (iv) Cluster Analysis
Codes:
(a) (b) (c) (d)
(A) (iv) (ii) (i) (iii)
(B) (ii) (iv) (i) (iii)
(C) (ii) (iv) (iii) (i)
(D) (iv) (iii) (i) (ii)
Identify the window not associated with SPSS.
(A) Editor
(B) Syntax
(C) Output
(D) Format Cells
Match the items given in Column-A with the items given in Column-B.
Column – A Column - B
(a) A process to upgrade the quality of the
data before it is moved into a data warehouse. (i) Pattern recognition
(b) A system that is used to run the business in real
time and is based on current data. (ii) Data Scrubbing
(c) A critical success factor in data mining of
large data store. (iii) Operational system
Codes:
(a) (b) (c)
(A) (ii) (iii) (i)
(B) (iii) (ii) (i)
(C) (i) (ii) (iii)
(D) (ii) (i) (iii)

162
June 2013
In a symmetrical distribution
(A) Mean, Median and Mode values are identical.
(B) Mean, Median and Standard Deviation are equal.
(C) Mean, Median and Correlation are equal.
(D) None of the above
From the following, identify the test which can be used both as parametric and
non-parametric?
(A) ‗t‘ test
(B) ‗F‘ test
(C) ‗Chi-square‘ test
(D) ‗Wilcoxon‘ test
Arrange the following in ascending order in the testing of hypothesis:
(i) Determining the level of significance
(ii) Deciding the Statistical Test and computation
(iii) Setting the hypothesis
(iv) Decision
Codes:
(A) (iii), (ii), (i) and (iv)
(B) (iii), (i), (ii) and (iv)
(C) (i), (iii), (ii) and (iv)
(D) (i), (iii), (iv) and (ii)
Y = a + bX refers to
(A) Y = independent variable, a = slope of the line, b = Y intercept and X =
dependent variable
(B) Y = dependent variable, a = slope of the line, b = Y intercept and X =
independent variable

163
(C) Y = independent variable, a = dependent variable, b = Y intercept and X =
slope of the line
(D) Y = dependent variable, a = Y intercept, b = slope of the line and X =
independent variable
Select the most appropriate option from Column B against the items in Column
A:
Column A Column B
a. Computer used to operate large
corporate systemsand databases1.Componentsofinformationsystem
b. Data flow diagram 2. RAID
c. Equipment, procedures and end user 3. Structured design
Codes:
abc
(A) 3 2 1
(B) 2 3 1
(C) 1 2 3
(D) 2 1 3

Dec 2012
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
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.

164
(C) Is always lower than the population standard deviation
(D) Is always equal to the population standard deviation.
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
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 at5% level of
significance.
(D) No definite assertion can be made.
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

June 2012
A Binomial distribution is characterized as β (16,0.5) i.e. sample size is 16 and
the probability of success is 0.5. The mean and variance of this distribution will
be respectively
(A) 8, 4

165
(B) 8, 8
(C) 4, 8
(D) 4, 4
Two variables are said to be perfectly negatively correlated if
(A) Covariance between them is positive
(B) Coefficient of correlation between them is –1
(C) Covariance between them is negative
(D) None of the above
Which type of sampling is appropriate when the population consists of well-
defined groups such that the elements within each group are homogeneous and
between each group they are heterogeneous?
(A) Cluster Sampling
(B) Simple Random Sampling
(C) Stratified Sampling
(D) Judgment Sampling
Which of the following is not a type of internet connection?
(A) ISDN
(B) Dial-up
(C) Leased-Line
(D) ISP
Match the following:
List – I List – II
(I) Poisson distribution has the property that 1. Its mean is greater than
Variance
(II) Normal distribution is a 2. Symmetric distribution
(III) Chi-square distribution is 3. Positively skewed
distribution
(IV) Binomial distribution has the property that 4. Its mean and variance
are equal.
166
Codes:
(I) (II) (III) (IV)
(A) 4 2 1 3
(B) 4 2 3 1
(C) 1 2 3 4
(D) 2 4 3 1

Dec 2011
If P (A) =2 , P(B) = 1 , P(A/B) = 1then the value of P(B/A) is 3
3 3
(A)1
2
(B)1
3
(C)1
4
(D)1
5
Note:- Answer for the question is not given by UGC
The level of significance is the probability of committing the
(A) Type I error
(B) Type II error
(C) Standard error
(D) Probable error
The two lines of regression are 3x + 2y = 26 and 6x + y = 31 then the mean of x
is
(A) 3 (B) 4
(C) 6 (D) 7

167
Note:- Answer for the question is not given by UGC
For which distribution(s) Mean and Median are equal?
(i) Binomial Distribution;
(ii) Poisson Distribution;
(iii) Exponential Distribution; or
(iv) Normal Distribution
Codes:
(A) (i)
(B) (ii)
(C) (i) & (iii)
(D) (ii) & (iv)
The type of transmission channel which can transmit data in one direction only
is known as
(A) Simplex
(B) Half Duplex
(C) Full Duplex
(D) Half Simplex

June 2011
The probability that a contractor will get a plumbing contract is 2/ 3 and that he
will get an electric contract is 4/ 9. If the probability of his getting at least one of
the two contracts is 4/5, then the probability that he will get both contracts is
(A) 10/45
(B) 8/27
(C) 14/45
(D) 26/45
If a random variable X follows Poisson distribution such that P(X = 1) = P(X =
2), then the mean of the distribution is

168
(A) 1 (B) 2
(C) 3 (D) 4
The value of R1.23 lies between
(A) –1 and +1
(B) –1 and 0.0
(C) 0.0 and +1
(D) – 0.5 and + 0.5
A source programme is
(A) a programme written in machine language
(B) a programme to be translated into machine language
(C) the machine language translation of a programme written in high-level
language
(D) none of the above
Processing data in groups collected over periods of time is known as
(A) Time - sharing
(B) Batch processing
(C) Real – time processing
(D) Multi – processing

Dec 2010
In a normal distribution, mean (m)± 3s (3 standard deviation) limitscontains
approximately
(A) 99.73% of the observations
(B) 99.27% of the observations
(C) 96% of the observations
(D) 95% of the observations
Firms choose a focus strategy to serve the needs of which of the following?
(A) Buyers group

169
(B) Different-segment of a product line
(C) Different geographical market
(D) All of the above
Note:- Answer for the question is not given by UGC
Which of the following is not the component of work study?
(A) Work measurement
(B) Case study
(C) Time study
(D) Motion study
Half percent of the letters mailed in a city have incorrect addresses. Out of 200
such letters mailed in a day, the probability of finding at most 3 incorrect
addresses is
(A) 3e / 8
(B) 8 / 3 e-1
(C) 1 / 6 e–1
(D) 5 / 2 e–1
If X is a random variable normally distributed with mean and variance, then the
mean deviation about mean is given by
(A) 1
√2π
(B) √2
π
(C) σ
√2π
(D) √2σ
The level of significance is the probability of committing
(A) type I error
(B) type II error

170
(C) standard error
(D) probable error
Which of the following tests is used to test a hypothesis about the mean of a
univariate normal distribution with unknown variance?
(A) Normal test
(B) Student‘s test
(C) Paired t-test
(D) Chi-square test
Mean and variance of Binomial Distribution are
(A) m and σ2 (B) m and nq
(C) m and np(D) np and npq
(Where the terms have usual statistical meaning)

June 2010
If the independent variates xi (i = 1, 2, …..n) are normally distributed about a
common mean,a, with a common variance, s2,their mean is also
normallydistributed about a, but with avariance
(A) nσ2
(B) σ2n
(C) (σ2)n
(D) σn/2
The weak law of large numbers is another version of
(A) Convergence in probability
(B) Random number generation
(C) Financial probability law
(D) Poisson probability law
The basic assumptions underlying the t-test for the difference of two
sample means are that the parent populations are and
population variances are

171
(A) of any shape; equal and known
(B) normal; equal and known
(C) normal; equal but unknown
(D) normal; unequal but known
LAN stands for
(A) Large Area Network
(B) Local Area Network
(C) Long Accurate Network
(D) Lay Access Network
If X is normally distributed with mean 30 and s.d. 5 and φ (x) denotes:- 1 ʃ e -
1/2 t² dt then P(26<X<40) and P (X > 45) given by:-
√2π
(a) Φ (.8) + φ (.2) and φ(3) -1/2
(b) Φ (2) - φ (.8) and 1/2-φ(3)
(c) Φ (2) - φ (.8) and 1/2 +φ(3)
(d) Φ (2) + φ (.8) and 1/2 φ(3)

Dec 2009
A company is producing steel rods. Assuming that the length of steel rods
follows normal distribution with mean 10 inches & variance equal to
0.04 sq. inches. The standard error of mean, when a random sample of 16 is
taken, will be

(A) 4/10 (B) 2/20

(C) 2/40 (D) None of these

Judgment sampling to select the sampling units from population is termed


as

(A) Probability sampling (B) Non-probability sampling

(C) Systematic sampling (D) none of these

Wide area network is

172
(A) Network of computers spread over a small geographical area.
(B) Network of computers spread over a large geographical area.
(C) Network of computers in a room.
(D) None of these.
Correlation coefficient between two variables X & Y is calculated as
0.63. If the measurements of X & Y are changed to U= X- 10 & V= Y+5 the
new value of correlation coefficient will be 5 10
(A) 0.063 (B) 0.315
(C) 0.63 (D) None of these
A person appears in an interview for a job in the two companies say X and Y.
The chances of selection in company X is 0.7 and chances of selection in Y is
0.6. The probability of his selection in either of the two companies will be
(A) 0.42 (B) 0.88
(C) 0.50 (D) None of these

June 2009
In case of Binomial distribution, the mean is:
(A) Always greater than variance
(B) Always equal to variance
(C) Always less than variance
(D) None of these
Car hire firm has two cars which it hires out daily. The demand for car is
distributed as Poisson with mean 2. If the value of e2250.1353, the number of
days out of 100 days on which neither of the car is used are:
(A) Approximately 14 (C) Approximately 32
(B) Approximately 22 (D) None of these
Note:- Answer for the question is not given by UGC
A committee of four has to be formed from among 3 Economists, 2 Managers, 4
Doctors and one Statistician. The Probability that all 4 professions are
represented on the committee will be:

173
(A) 14/35
(B) 10/35
(C) 4/35
(D) 24/35
Note:- Answer for the question is not given by UGC
Correlation Coefficient is equal to:
(A) Arithmetic mean of both regression coefficients
(B) Geometric mean of both regression coefficients
(C) Difference of two regression coefficients
(D) None of these
When Null hypothesis (Ho) is true and test rejects it, it is called:
(A) Type - I error (B) Type-II error
(C) Level of significance (D) none of these

174
Unit VIII:-Corporate Strategy
Concept of Corporate Strategy Components of Strategy Formulation, Ansoff‘s
Growth Vector, BCG Model, Porter‘s Generic Strategies, Competitor Analysis,
Strategic Dimensions and Group Mapping, Industry Analysis, Strategies in
Industry Evolution, Fragmentation, Maturity and Decline, Competitive Strategy
and Corporate Strategy , Trans nationalization of Word Economy, Managing
Cultural Diversity, Diversity Global Entry Strategies, Globalization of Financial
System and Services, Managing International Business, Competitive
Advantage of Nations, RTF and WTO.

Nov 2017
1. Match the items of List-I and List-II and select the code of correct
matching:-
List- I List-II
(a) Merger of Vodafone and Idea (i) Business Strategy
(b)Launch of Apple iPhone 7plus (ii) Operational Strategy
(c) Manufacturing Samsung mobile
Handsets in India (iii) Corporate Strategy
Code:
a b c
1. iii i ii
2. iii ii i
3. ii iii i
4. ii i iii
2. Which among the following are 5ps of strategy as identified by Mintzberg?
a. Plan
b. Problem
c. Pattern
d. Position
e. Ploy
f. Perspective

175
Code:-
1. a, b, c, d and e
2. a, b, d, e and f
3. b, c, d, e and f
4. a, c, d, e and f
3. Assertion (A): A firm‟s relative position within its industry determines
whether the firm‟s overall profitability is above or below the industry average.
Reasoning (R): The fundamental basis of average profitability in the long run is
sustainable competitive advantage
Code:-
1. A and R both are correct and R is the right explanation of A
2. A and R both are correct but R is not the right explanation of A
3. A is correct but R is incorrect
4. R is correct but A is incorrect
4. Statement I:- A “Star” is the market leader in a high-growth market; and it
has sufficient cash to support other businesses.
Statement II:- “Dogs” have weak market share in high-growth market.
Code:-
1. Statement I is correct but II is incorrect.
2. Statement is correct but I is incorrect.
3. Both the Statements I and II are correct
4. Both the Statements I and II are incorrect
5. Which among the following is not a generic strategy?
1. Unity Strategy
2. Cost Leadership Strategy
3. Differentiation Strategy
4. Niche Strategy

Jan 2017
6. Assertion (A): Private foreign capital lends to flow to the high profit areas
rather than to the priority sectors.

176
Reasoning (R): One of the important limitations to utilize the foreign capital is
the absorptive capacity of the recipient country.
Codes:
(1) (A) and (R) both are correct and (R) is the correct explanation of (A).
(2) (A) and (R) both are correct but (R) is not the correct explanation of (A).
(3) (A) is correct whereas (R) is incorrect.
(4) (R) is correct whereas (A) is incorrect.
7. Consider the following statements and identify the correct code of true
statements:
(a) When an organization‟s survival is threatened and it is not competing
effectively, retrenchment strategies are often needed.
(b) Turnaround strategy is used when an organization is performing well but
has not yet reached a critical stage.
(c) Divestment strategy involves selling the business or setting it up as a
separate corporation.
(d) Liquidation strategy involves closure of business which is no longer
profitable.
Codes:
(1) Only (a), (b) and (c) are correct.
(2) Only (b), (c) and (d) are correct.
(3) Only (a), (c) and (d) are correct.
(4) Only (a) and (d) are correct.
8. Statement – I: Most businesses start off as “Question Marks”, in that they
enter a high growth market in which there is already a market leader.
Statement – II: A “Star” is the market leader in a high-growth market, but it
does not necessarily provide much cash.
(1) Statement – I is correct but Statement – II is incorrect.
(2) Statement – II is correct but Statement – I is incorrect.
(3) Both the Statements are incorrect.
(4) Both the Statements are correct.
177
9. Match the items of List – I with List – II and identify the code of correct
matching:
List – I List – II
a. Consistent actions one time i. A perspective
b. It reflects the decision of the firm to offer
particular products or services in particular markets. ii. A ploy
c. A manoeuvre intended to outwit competitor iii. A position
d. A view of what the organization is to become iv. A pattern
Codes:
a b c d
(1) iv iii i ii
(2) iv i ii iii
(3) iv iii ii i
(4) iii iv ii i
10. Apple computers uses a differentiation competitive strategy that
emphasizes innovative product with creative design. This is an example of
(1) Functional strategy (2) Business strategy
(3) Operating strategy (4) Product strategy

July 2016
11. The highly competitive industries, particularly in the early stage of product
life cycle,follow which one of the following strategies?
(1) Functional area support strategy (2) Expansion strategy
(3) Diversification strategy (4) Downsizing strategy
12. When highly interrelated variables exist or when it is necessary to choose
from severalplausible alternatives, which one of the following should the
strategist integrate indecision making?
(1) Analysis of facts (2) Intuition
(3) Competitor‘s strategy (4) Global perspective

178
13. Assertion (A): In an industrial structure, the acquisition of an existing firm
in theindustry might be a better move than starting-up a new venture.
Reasoning (R): There is evidence that internal development might be preferable
toacquisition because of differences between cultures and shared valued.
Codes:
(1) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(2) Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(3) (A) is correct, but (R) is not correct.
(4) (R) is correct, but (A) is not correct.
14. Consider the following statements with reference to Porter‟s five forces
model of competitive analysis:
(a) As rivalry among competing firm intensifies, generally industry profits
decline or infew cases, industry becomes inherently unattractive.
(b) Whenever new firms are allowed to enter a particular industry, the intensity
ofcompetitiveness among firms becomes haphazard.
(c) Generally competitive pressures arising from the substitute products
decrease as therelative price of substitute products decline.
(d) Bargaining power of suppliers affects the intensity of competition.
Codes:
(1) Statements (a) and (b) are false, others are true.
(2) Statements (a) and (d) are true, others are false.
(3) Statements (b), (c) and (d) are true, but (a) is false.
(4) All the statements are true.
15. Match the items given in List – I with the items of List – II:
List – I List – II
a. Vision i. General statements of the company‟s intent.
b. Mission ii. Desired future position of the company
c. Goals iii. Operationalizing of mission

179
d. Objectives iv. Vivid idealized description of a desired outcome
Codes:
abcd
(1) iv i ii iii
(2) i ii iii iv
(3) ii iii i iv
(4) iii iv ii i

Dec 2015
16. A company manages multiple strategies for it‟s multiple markets and
multiple products through which one of the following?
(1) Strategic Planners(3) Strategic Windows
(2) Strategic Business Units (4) Strategic Technology
17. Match the items of List – I with List – II:
List – I List – II
(a) Technical Innovation Strategy (i) foreign producer gives a straight copy

(b) Product Adaptation Strategy(ii) Perceived and demonstrable superior


products
(c) Availability and Security Strategy(iii) Modifications to existing products

(d) Total Adaptation and Conformity Strategy(iv) Overcome transport risk by


countering perceived risks
Code:
abc d
1. iii ii i iv
2. ii iii iv I
3. i ii iii iv
4. ii iii i iv
18. Only diversified company with a balanced portfolio can use its strengths to
truly capitalize on its growth opportunities. Hence the balanced portfolio
contains:
(1) Stars whose high share and high growth assure the future
180
(2) Cash cows that supply funds for their future growth
(3) Question marks to be converted into stars with the added funds
(4) All of the above
19. Porter‟s Generic Strategies identified three basic categories of
strategies to include which one of the following combinations?
(1) High Cost Producer, differentiation and cost control
(2) Low Cost Producer, differentiation and focused Niche
(3) Specific strategic issues, vertical integration strategies and supply
strategy
(4) Managerial resources, profitability and focused Niche
20. The stages of corporate development provide a way for the strategic
manager to analyze:
(1) Personal objectives, entrepreneurial skill
(2) Managerial abilities, opportunity and threats
(3) Frequently encountered version, functional management
(4) Competitiveness, aggressiveness

June 2015
21. Which of the following statements is correct?
(1) Balanced score cards always report using the same time periods as the
financial accounting system.
(2) One fundamental idea of balanced score card is to increase the number of
performance indicators used to manage the business.
(3) Organizationssometimes use a ―traffic light‖ system on their balanced score
card to help them priorities their activities.
(4) The fundamental idea of balanced score cards is to create corporate strategy.
22. What metaphor is used to describe the competitive space where product are
not yet well defined, competitors are not well-organized and the market is
relatively unknown?
(1) Blue Lagoon
(2) Blue Ocean
181
(3) Red Sea
(4) Red Ocean
23. Michael E. Porter‟s five generic strategies are :
(1) Differentiation (Best Value). Differentiation (Low Cost), Cost Leadership
(Large), Cost Leadership (Small), Focus
(2) Focus (Large), Focus (Small), Cost Leadership (Small), Cost Leadership
(Large), Differentiation
(3) Cost Leadership (Low Cost), Cost Leadership (Best Value), Differentiation,
Focus (Low Cost), Focus (Best Value)
(4) Cost Leadership (Large), Cost Leadership (Small), Differentiation (Large),
Differentiation (Small), Focus
24. One of the strategic decisions relating to the value chain concerns vertical
integration. This would involve:
(1) Deciding to link all activities using Enterprise Resource Planning.
(2) Deciding whether the activity should be performed within the organization
or by a different firm.
(3) Deciding whether to locate operation in the home country or in a foreign
location.
(4) Deciding whether to share certain activities across different products and
markets.
25. “Pepsi Co launched a hostile takeover of Pepsi Bottling Group after its
$ 4.2 billion offer was rejected”. Which strategy was used in this case?
(1) Market Penetration(3) Horizontal Integration
(2) Backward Integration(4) Forward Integration

Dec 2014
26. At which level in the company should market-oriented strategic planning
begin?
(A) Corporate level
(B) SBU level

182
(C) Marketing Department‘s level
(D) Brand Manager‘s level
27. Which of the following statements is not true?
(A) A group of firms following the same strategy in a market is called a
‗strategic group‘.
(B) The members of strategic group are the key competitors.
(C) The type of competition among them is known as generic competition.
(D) The height of entry barriers differ for each group.
28. In India Proctor & Gamble (P & G) (Home products division) is following
the strategy of
(A) Cost leadership
(B) Differentiation
(C) Broad differentiation
(D) Focused differentiation
29. Today, mobile phones have many features such as camera, GPS,
Internet, music and videorecording. This is an example of
(A) Convertibility of Industries
(B) Combination of Industries
(C) Competition among Industries
(D) Convergence of Industries
30. An organization that is downsizing to reduce cost is implementing a
strategy of
(A) Growth
(B) Focus
(C) Renewal
(D) Stability

June 2014
31. Indicate the statement which is not correct:

183
i. Credit risk is loss on account ofdefault of repayment of loan.
ii. Liquidity risk is the risk onaccount of the mismatches ofcash inflow and
outflow in afirm.
iii. Basic risk is the risk in a firmowing to the differences in theindex to which
financial assetsand liabilities are tied up.
iv. Forward rate agreement is acontract where a borrower /lender locks the
interest rateand protects itself from the losson account of change in thefuture
interest rate.
Codes:
(A) i and ii
(B) ii and iii
(C) iii and iv
(D) None of the above
32. Which of the following facts are notcorrect in the context of India‟s
relations with the WTO?
i. India has been the foundermember of the GATT.
ii. India has agreed to abide by thearrangement on the intellectualproperty
rights.
iii. Under the trade-relatedinvestment measures, India hasalready notified its
stand.
iv. India has agreed to allow entrytoForeign Service providers.
v. The Indian government hasamended the Civil Procedure
Code for the benefit of Foreign Service providers.

Codes:
(A) i and ii (B) ii and iii
(C) iv only (D) v only
33. Intra-firm transfer of technology is found when
(A) the price of technology development is very low.

184
(B) it is difficult to protect the technology through patents.
(C) the price of technology is very high.
(D) the technology is developed in association with an allied firm
34. Match the theories of Foreign Direct Investment with their
contributors:
List – IList – II
(Theory) (Contributor)
a. Industrial Organization Theory i. Kemp &McDougall
b. Location Specific Theory ii. Hood and Young
c. Product Cycle Theory iii. Stephen Hymer
d. Two-Country Model iv. Raymond Vernon
Codes:
abcd
(A) i ii iii iv
(B) iv iii i ii
(C) iii ii iv i
(D) i ii iv iii
35. Assertion (A): The laws regarding patents and trademark are
ineffective in many countries.
Reasoning (R): There are cases when a government does not abide by the
rulings of theInternational Court of Justice.
(A) (A) and (R) both are correct, and (R) is the right explanation of (A).
(B) (A) and (R) both are correct, but (R) is not the right explanation of (A).
(C) (A) is correct, but (R) is not correct.
(D) (R) is correct, but (A) is not correct.

Dec 2013

185
36. Double taxation relief is normally provided by the country in which the
parent company has its legal residence. It is provided in the following modes:
i. Credit system without deferral
ii. Credit system with deferral
iii. Deduction of tax paid abroad as expenditure
iv. Investment credit
v. Tax subsidy
Identify the correct combination.
Codes:
(A) i, ii, iii and iv
(B) i, ii, iv and v
(C) ii, iii, iv and v
(D) i, ii, iii and v
37. The strategies of a global firm are affected by the following factors:
i. Different countries have different labor mixes.
ii. The legal, economic, social and cultural environment varies from one
country to another.
iii. Different countries have different time lines and geographical
boundaries.
iv. Political relationship between the home country and the host country.
Indicate the correct combination.
Codes:
(A) i, ii and iii
(B) ii, iii and iv
(C) i, ii and iv
(D) i and ii only
38. Match the items of List – I and List – II:

186
List – I List – II
a. UNCTAD I i. India
b. UNCTAD II ii. Brazil
c. UNCTAD X iii. Thailand
d. UNCTAD XI iv. Switzerland
Indicate the correct matching.
Codes:
abcd
(A) iv i iii ii
(B) iii i iv ii
(C) ii i iii iv
(D) iv i ii iii
39. In the context of International Business, whether an equal distribution of
income in the host country:
(A) Has nothing to do with the MNCs market segmentation strategy.
(B) Matters greatly to the MNCs market segmentation strategy.
(C) Has little impact on the MNCs market segmentation strategy.
(D) Has a significant impact on the MNCs market segmentation strategy if the
economy is atthe take-off stage.
40. Statement-I: Cost of retained earnings is included in the cost of equity in the
context of international business.
Statement-II: Interest rate swap and currency swap are used
interchangeably in international business.
(A) Statement I is true, but Statement II is false.
(B) Statement I is false, but Statement II is true.
(C) Both the statements I and II are true.
(D) Both the Statements I and II are false.

Sept 2013

187
41. In BCG Matrix which division represents the organization‟s best long- run
opportunities for growth and profitability?
(A) Question marks
(B) Stars
(C) Cash Cows
(D) Dogs
42. In a comprehensive strategy formulation framework which matrix reveals
the relative attractiveness of alternative strategies and thus provides objective
basis for selecting specific strategies.
(A) SPACE Matrix
(B) SWOT Matrix
(C) QSPM Matrix
(D) Competitive Profile Matrix (CPM)
43. Stage 2 of strategy formulation consists of
(A) EFE Matrix, the IFE Matrix and the Competitive Profile Matrix (CPM).
(B) SWOT Matrix, SPACE Matrix, BCG Matrix, the Internal- External (IE)
Matrix, and the Grand Strategy Matrix.
(C) Quantitative Strategic PlanningMatrix (QSPM).
(D) EFE Matrix, the IFE Matrix and Quantitative Strategic Planning Matrix
(QSPM).
39. Match the following:
Term Explanation
a. Strategy 1. Enduring statements of purpose
that distinguish one business from other simple firms.
b. Vision 2. Specific results that an organization
seeks to achieve.
c. Mission 3. What do we want to become?
d. Objectives 4. Means by which long term
objectives will be achieved.
Codes:
188
abcd
(A) 4 3 1 2
(B) 4 2 3 1
(C) 1 3 2 4
(D) 1 2 3 4
40. Match the following:
List – I List – II
(a) Italian Culture i. Importance on group loyalty and consensus
(b) American Culture ii. Employment as workers of those who are
agreeable, respectful and obedient rather than innovative, creative and
independent.
(c) Mexican Culture iii. Willing to do business with individuals
they do not know.
(d) JapaneseCultureiv. A culture wherein you do
notsoftenupexecutiveswithpraisebeforecriticize.
Codes:
(a) (b) (c) (d)
(A) i ii iii iv
(B) iv iii ii I
(C) ii iii iv i
(D) iii iv i ii

June 2013
41. In context of Industry Analysis which matrix allows strategists to
summarize and evaluate economic, social, cultural, demographic,
environmental, political, governmental, legal, technological and competitive
information?
(A) EFE Matrix
(B) CPM Matrix
(C) BCG Matrix

189
(D) IFE Matrix
42. Which among the following best describes the process of gaining
competitive advantage in a firm?
(A) Strengths → Weaknesses →Distinctive Competencies → Competitive
Advantage
(B) Weaknesses → Strengths →Distinctive Advantages →Competitive
Advantages
(C) Weaknesses → Strengths →Distinctive Competencies →Competitive
Advantages
(D) Distinctive Competencies →Weaknesses → Strengths →Competitive
Advantages
43. According to Porter, the nature of competitiveness in a given industry can
be viewed as a composite of the following five forces:
1. Rivalry among competing firms.
2. Potential entry of new competitors.
3. Potential development of substitute products.
4. Bargaining power of suppliers.
5. Bargaining power of consumers.
Identify the force which is central (most powerful) to remaining four:
(A) Potential development of substitute products.
(B) Potential entry of new competitors.
(C) Bargaining power of consumers.
(D) Rivalry among competing firms.
44. Match the following: Organizational Structure Advantage
a. Functional Structure 1. Clarity of project objectives
b. Divisional Structure 2. Smooth delegation of authority and
responsibility
c. Matrix Structure 3. Simple and unexpensive
d. Strategic Business Unit (SBU) 4. Ease of fixing accountability

190
Codes:
abcd
(A) 1 2 3 4
(B) 3 4 1 2
(C) 3 4 2 1
(D) 4 3 1 2
45. A sound business opportunity is theresult of appropriate interaction
between:
(A) Needs of the society
(B) Capabilities of an entrepreneur
(C) Resources available in the environment
(D) all of the above

Dec 2012
46. 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
47. 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
48. 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

191
(C) Conglomerate diversification
(D) Concentric diversification
49. 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
50. 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

June 2012
51. WTO comes into being in the year
(A) 1975
(B) 1985
(C) 1995
(D) 2001
52. Which of the following is not Porter‟s generic strategy?
(A) Focus
(B) Cost Leadership
(C) Differentiation
(D) Market segmentation
53. Globalization involves
(A) Free flow of technology from one country to another

192
(B) Free flow of investment from one country to the other
(C) Free flow of people from one country to the other
(D) All the above
54. Which is a short-term strategy for a firm?
(A) Corporate strategy
(B) Business strategy
(C) Company mission
(D) Functional strategy
55. Which is not a global entry strategy?
(A) Exporting
(B) Joint venture
(C) Merger and Acquisition
(D) Blue ocean strategy

Dec 2011
56. Eliminate – reduce – raise – create grid is germane to
(A) Competitive Strategy
(B) Blue Ocean Strategy
(C) Red Ocean Strategy
(D) None of the above
57. Match the following:
List – I List – II
I. Ansoff 1. Case competency
II. C.K. Prahlad 2. Management by Objectives
III. Peter F. Drucker 3. Cascade Approach
IV. Alfred Chandler 4. Structure follows Strategy
Codes:

193
I II III IV
(A) 1 3 2 4
(B) 2 3 1 4
(C) 3 1 2 4
(D) 4 2 3 1
58. Growth strategy requires that a firm should
(A) Realign its product market environment
(B) Acquire new firm
(C) Go for new product development
(D) Expand the market
59. Michael Porter‟s five forces model belongs to
(A) Planning School
(B) Positioning School
(C) Cognitive School
(D) Competitive Strategy School
60. The theory of business of an organization is embodied in
(A) Vision
(B) Mission Statement
(C) Objectives
(D) Policies

June 2011
61. “We must forget to learn and learn forgetting” is ascribed to
(A) Tom Peters
(B) Peter F. Drucker
(C) Abraham S. Maslow
(D) Garry Hamel

194
62. In highly competitive environment an organization to achieve sustained
success should be
(A) Better
(B) Bigger
(C) Resilient
(D) None of the above
63. Corporate governance is about
(A) Crafting the strategy
(B) Compliance with regulatory regime
(C) Satisfying the stakeholders
(D) Governing the company in the interest of government in power
64. Strategic planning is about
(A) Strategic thinking
(B) Strategic programming
(C) Tactical Planning
(D) Portfolio Planning
65. If two or more companies are merged and only one of them survives while
others loose their independent entity, it is referred to as
(A) Merger
(B) Absorption
(C) Amalgamation
(D) Combination

Dec 2010
66. Which of the following is the characteristic of a strategic business unit?
(A) It serves a homogenous set of markets.
(B) It serves a unique set of products.
(C) It owns responsibility for its own profitability.

195
(D) All of the above.
67. Which one of the following is not a generic strategy?
(A) Cost Leadership
(B) Product Differentiation
(C) Cost focus
(D) Group focus
68. A retrenchment strategy is designed to reduce
(A) Technical losses
(B) Financial losses
(C) The scale and scope of the business operation
(D) all of the above
69. World Trade Organization provides
(A) Rule based multilateral trading system.
(B) Equity and social justice to the people.
(C) Rule based regional trading system
(D) All of the above

June 2010
70. What enables the management to find out whether the strategic
management processes are appropriate, compatible and functioning in the
desirabledirection?
(A) Implementation control
(B) Special alert control
(C) Premise control
(D) Strategic control
71. Which one is not the part of Michael Porter‟s five forces model?
(A) Threat of substitutes
(B) Firm‘s core competence

196
(C) Rivalry among existing players
(D) Threat of new entrants
72. Which of the following strategy is regarded unfair?
(A) Collusion
(B) Strategic alliance
(C) Differentiation
(D) Turnaround strategy
73.Which of the following relationship strategies result into forming of a new
organization?
(A) Strategic alliance
(B) Partnership
(C) Joint venture
(D) None of the above
74. A growth strategy is designed to increase
(A) The scale and scope of the Business operations.
(B) The corporate image of the business.
(C) Corporate social responsibility of business.
(D) None of the above.
75. Cost leadership strategy is related to
(A) Functional strategy
(B) SBU strategy
(C) Corporate strategy
(D) Global strategy
76. Countries derive their competitive advantage in international trade through
their
(A) Comparative cost advantage
(B) Contribution to the World trade

197
(C) Natural endowments
(D) All of the above
77. Which analysis helps to understand the strength and weaknesses of a firm?
(A) Environment analysis
(B) Business analysis
(C) SWOT analysis
(D) None of the above

Dec 2009
78. Which of the following helps a manager to identify the opportunities and
threats in the competitive industry environment?
(A) Analysis of organizational structure.
(B) Analysis of competitive forces.
(C) Analysis of operations.
(D) Market Research
79. Essence of strategy at strategic Business Unit level is
(A) How to build core competency
(B) How to gain competitive advantage
(C) How to gain market share
(D) All of the above
80. Which one of the following is a primary activity in a value chain?
(A) Operations (B) Firm infrastructure
(C) Technology development (D) Procurement
81. Business unit which holds a large market share in a mature and slow
growing industry is called
(A) Star (B) Dog
(C) Question Mark (D) Cash cow

198
82. Which strategy requires a company to concentrate its efforts in one or more
narrow segments instead of broad based strategy?
(A) Cost leadership (B) Focus
(C) Differentiation (D) None of the above

June 2009
83. Which element identities the strategic factors that determine the future of a
firm?
(A) Environmental Scanning
(B) Strategy Formulation
(C) Strategy Implementation
(D) Strategy Evaluation and Control
84. Which strategy provides a means for achieving a company‟s annual
objectives?
(A) Marketing Strategy(C) Business Strategy
(B) Operating Strategy(D) Corporate Strategy
85. Which of the following is not a primary activity in a value chain?
(A) Human Resource Management (C) Operations
(B) Marketing and Sales (D) Outbound logistics
86. Which one of the following represents the best long run opportunity in a
firm‟s business portfolio?
(A) Star (C) Cash COW
(B) Question Mark (D) DOG
87. A firm tries to achieve the lowest cost of production and distribution so that
it can set its prices at a lower level than its competitors. Which generic strategy
it is following?
(A) Cost leadership (C) Focus
(B) Differentiation (D) All of the above
88. Which method of product portfolio analysis helps in deciding which
products are to be retained and which are not to be retained?

199
(A) Ansoff‘s Matrix (C) BCG Matrix
(B) Environment Matrix (D) All of the above

200
Unit IX:-Entrepreneurship and Small Business
Concepts- Types, Characteristics Motivation, Competencies and its
Development and Development to be shifted from 8th Chapter and
Entrepreneurship, Small Business- Concept Government Policy for Promotion
of Small and Tiny Enterprises , Process of Business Opportunity Identification,
Detailed Business Plan Preparation, Managing Small Enterprises, Planning for
Growth; Sickness in Small Enterprises, Rehabilitation of Sick Enterprises,
Intrapreneurship ( Organizational Entrepreneurship)

Nov 2017
1.Elements of entrepreneurial competencies, according to the theorist of the
subject, pertain to which one of the following?
1. Body of Knowledge set of skills, cluster of appropriate motives and traits
2. Ability to prepare viable project, executional skills and materlisation of group
goals
3. Ability to work in a group, enforce dynamics and motive employees
4. Assigning priorities to hierarchy of Maslow‘s monetary needs and non-
monetary needs
2. Under the new norms of Micro, Small and Medium Enterprises Development
(MSMED) Act 2006, the criteria of investment limit in plant and machinery for
MSME falls under which one of the following category?
1. Micro Rs25 lakh, small Rs5 crore, Medium Rs10 crore
2. Micro Rs20 lakh, small Rs2.5 crore, Medium Rs5 crore
3. Micro Rs20 lakh, small Rs6 crore, Medium Rs8 crore
4. Micro Rs25 lakh, small Rs10 crore, Medium Rs15 crore
3. Entrepreneurial Judo Strategy aims at which one of the following?
1. Filling holes left by others in the industry
2. Developing effectiveness in the industry
3. Mobilizing finance and effective use to reduce NPAs
4. Creating competitive environment in the environment of SMMEs.

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4. Preparation of a business plan as a pre-requisite to a promotion of a business
enterprise, relates to which one of the following?
1. There is no flaw in the business idea, the fashion, conviction and tenacity of
the entrepreneur.
2. Make arrangement for finance and prevent occurrence of NPAs by business
entity.
3. Ensure that business entity works at break-even level
4. Make plan to raise finance from market and alternative investment
opportunities
5. Federation of Associations of Small Industries of India (FASII)
promoted in 1959 is which one of the following type?
1. Government organization
2. Liaisoning organization
3. Small Scale Unit
4. SSI Board

Jan 2017
6. Match the items of List – I with the items of List – II and select the code of
correcting matching:
List – IList – II
a. Richard Cantilloni. Entrepreneur must accept the challenge and should be
willing hard to achieve something
b. Joseph A. Schumpeter ii. Entrepreneurs are all those persons who are
engaged in economic activity.
c. J.K. Golbraith iii. Entrepreneur is a person who introduces
innovation and change.
Codes:
a b c
1. iii ii i
2. i iii ii
3. ii iii I

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4. ii i iii
7. Total Quality Management, job redesigning, new techniques of doing things
and management by consensus are the examples of which one of the following?
(1) Opportunistic entrepreneurship
(2) Administrative entrepreneurship
(3) Incubative entrepreneurship
(4) Mass entrepreneurship
8. Under technology and quality upgradation support to help manufacturing
MSMEs buy energy efficient technologies for production, what percentage of
the actual expenditure is provided as financial support by the Government of
India?
(1) 75%
(2) 60%
(3) 50%
(4) 25%
9. Which one of the following is not a personal characteristic of an
entrepreneur?
(1) Innovative (3) Practical
(2) Hardworking (4) Submissive
10. Which one of the following is the most insignificant reason for sickness in
SSI sector?
(1) Power shortage (3) Management problems
(2) Lack of demand (4) Equipment problems

July 2016
11. Statement – I: VED analysis is meant for project maximization.
Statement – II: Network analysis is independent of planning process.
Codes:
(1) (I) is correct but (II) is incorrect.

203
(2) (II) is correct but (I) is incorrect.
(3) Both (I) and (II) are correct.
(4) Both (I) and (II) are incorrect.
12. Match the items of List – I with List – II:
List – I List – II
a. A promotion assistance for development of Khadi i. SRUTI
b. A scheme of fund for registration of traditional industries ii. ISEC
c. Interest subsidy eligibility for all institutions registered
under KVIC iii. MDA
Codes:-
a b c
1. iii i ii
2. iii ii i
3. i iii ii
4. i ii iii
13. Under the Sick Industrial Companies (Special Provisions) Act, 1985, the
public sector companies were covered from which year?
(1) February, 1994 (2) January, 1990
(3) December, 1991 (4) None of the above
14. Industrial Reconstruction Bank of India (IRBI) which was reconstituted
into a full-fledged all-purpose developmental financial institution with effect
from March 27, 1997 was renamed as .
(1) Small Industrial Development Bank of India
(2) Industrial Investment Bank of India Ltd.
(3) Industrial Finance Corporation of India
(4) Board of Industrial and Financial Reconstruction

204
15. Non-availability of required project planning capability is due to
.
(1) Poor general management
(2) Poor professional management
(3) Poor entrepreneurial management
(4) Poor marketing management

Dec 2015
16. Which of the following are included as external factors affecting industrial
sickness?
(a) Changes in fiscal and monetary policies
(b) Price and distribution
(c) Non-availability of inputs
(d) Industrial relations
(e) Capital market fluctuations
Code:
(1) (a), (b), (c) and (d) (3) Only (a), (b) and (c)
(2) (b), (c), (d) and (e) (4) (a), (b), (c), (d) and (e)
17. Statement (I): - “Motivation is a continuous, complex and dynamic
process”.
Statement (II):- “As compared to other industries, extra motivation is required
in service sector industries”.
(1) Statement (I) is correct but Statement (II) is incorrect.
(2) Statement (II) is correct but Statement (I) is incorrect.
(3) Both the Statements (I) and (II) are correct.
(4) Both the Statements (I) and (II) are incorrect.
18. Assertion (A):- The function of entrepreneurs is to reform or revolutionize
the pattern of production by exploiting an invention or, more generally, an
untried technological possibility for producing a new commodity or producing
an old one in a new way.

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Reasoning (R): - Lack of innovations will usually reduce the life span of a
product and/or service.
Code:
(1) Assertion (A) and Reasoning (R), both, are correct, and (R) is correct
explanation of (A).
(2) Assertion (A) and Reasoning (R), both, are correct, but (R) is not right
explanation of (A).
(3) Assertion (A) is correct, whereas Reasoning (R) is incorrect.
(4) Reasoning (R) is correct, whereas Assertion (A) is incorrect.
19. A business idea becomes a good business opportunity when it covers which
four of the following?
(a) Attractiveness (b) Foreign Collaborations
(c) Political Support (d) Timeliness
(e) Durability (f) Value addition to end user
Code:
(1) (a), (b), (d) and (e) (3) (a), (d), (e) and (f)
(2) (a), (b), (e) and (f) (4) (b), (c), (e) and (f)
20. Which of the following are correct for an entrepreneur?
(a) Is an independent person
(b) Makes his/her own decisions
(c) has the opportunity of realizing dreams
(d) Has good financial strength
(e) Has undergone a systematic business training
(f) Has immense job satisfaction
Code:
(1) (a), (b), (c) and (d)
(2) (a), (b), (c) and (e)
(3) (a), (b), (c) and (f)

206
(4) (a), (b), (d) and (f)

June 2015
21. Who viewed entrepreneur as a non-fixed income earner with known costs
of production but uncertain income and therefore, operating at a risk?
(1) Adam Smith(2) Richard Contillon
(3) Jean-Baptiste Say (4) Francis Wolker
22. Which one of the following is not a major area of entrepreneurial
innovation as suggested by Joseph Schumpeter?
(1) Product innovation(3) Market innovation
(2) Process innovation (4) Structural innovation
23. Which one of the following types of entrepreneurs are not proactive in
nature and does not respond much to changes in the environment?
(1) Fabian entrepreneur (3) Drone entrepreneur
(2) Adoptive entrepreneur (4) Innovative entrepreneur
24. SFURTI (Scheme of fund for regeneration of traditional industries) is
implemented by:
(1) Union Ministry of Traditional Industries
(2) National Agricultural cooperative Marketing Federation
(3) Federation of Indian Chamber of Commerce and Industry
(4) Union Ministry of Micro, Small and Medium Enterprises
25. According to the Tiwari Committee report, which one of the following is
not an internal cause of industrial sickness in India?
(1) Lack of manpower planning (3) Excessive expenditure
(2) Lack of control systems (4) Excessive tax policies

Dec 2014
26. Who propounded entrepreneurship as a theory of business?
(A) Daniel Goleman
(B) Joseph A. Schumpeter

207
(C) Thomas A. Coleman
(D) Warren Buffet
27. Who among the following is not the first generation entrepreneur?
(A) DhirubhaiAmbani
(B) Shiv Nadar
(C) K. Anji Reddy
(D) G.D. Birla
28. Which of the following is not a possible route to market entry for a small
business owner/entrepreneur?
(A) Franchise
(B) Corporate Venture
(C) Outright Purchase
(D) Buy-out
29. The number of items which can be exclusively manufactured in the small
scale sector are
(A) 20 items
(B) 35 items
(C) 50 items
(D) 62 items
30. Which of the following is an external reason for the sickness of a small
business?
(A) Choice of an idea
(B) Inadequate finance
(C) Volatile business environment
(D) Lack of vertical and horizontal integration

June 2014
31. A study conducted by the Entrepreneurship Development Institute of India,
Ahmedabad, revealed that the possession of competencies is

208
necessary for superior performance of the entrepreneurs. The study was conducted
under the guidance of
(A) James T. McCrory
(B) David C. McClelland
(C) James J. Berna
(D) P.L. Tandon
32. is considered as a creative capital which performs economic
functions different from other investment vehicles, which primarily serve as the
expansion capital.
(A) Equity Capital
(B) Fixed Capital
(C) Venture Capital
(D) Share Capital
33. Which is the apex body in India for formulating the policy in respect of
entrepreneurship development?
(A) Reserve Bank of India
(B) Small Industrial Development Bank of India
(C) National Entrepreneurship Board
(D) Industrial Development Bank of India
34. means identifying and imitating the best in the world at specific
tasks.
(A) Quality circle
(B) Bench marking
(C) Strategy
(D) Outsourcing
35. Which of the following factors can be regarded as a symptom of industrial
sickness?
(A) Lowering the employee‘s morale
(B) Delay and default in the payment of dues

209
(C) Continuous decrease in the price of its shares
(D) All of the above

Dec 2013
36.Who said – “An entrepreneur always searches for change, responds to it and
exploit it as an opportunity.”?
(A) James Burna
(B) McClelland
(C) Peter F. Drucker
(D) Robert C. Ronstadt
37. „Kakinada Experiment‟ on achievement motivation was conducted in
(A) Uttar Pradesh
(B) Jammu & Kashmir
(C) Andhra Pradesh
(D) Gujarat
38. The entrepreneurial process consists of the following steps:
i. Management of the resulting enterprise.
ii. Determination of the required resources.
iii. Identification and evaluation of the opportunity.
iv. Development of the business plan.
Indicate the correct sequence. Codes:
(A) iii iv i ii
(B) iv i iii ii
(C) iii iv ii I
(D) iv i ii iii

210
39. Match the items given in List – I and List – II:
List – I List – II
a. Market Research i. Sales promotion
b. Financial Plan ii. Form of business
c. Ownership iii. Budgeting
d. Marketing Plan iv. Exploring market
opportunity
Codes:
abcd
(A) i ii iii iv
(B) iv iii i ii
(C) iv iii ii I
(D) i ii iv iii
40. TePP stands for
(A) Technology for Promotion and Production
(B) Trade for Profitability and Productivity
(C) Technopreneur Promotion Programme
(D) None of the above

Sept 2013
41. An Entrepreneur who is dominated more by customs, religions, traditions
and past practices and he is not ready to take any risk is called as
(A) Drone Entrepreneur
(B) Adoptive Entrepreneur
(C) Fabian Entrepreneur
(D) Innovative Entrepreneur

42. “Poverty is an artificial creation. It does not belong to human civilization


and we can change that and can make people come out of
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poverty through redesigning our institutions and policies.” This preamble refers
to
(A) Women Entrepreneurship
(B) Corporate Entrepreneurship
(C) Social Entrepreneurship
(D) None of the above
43. Match the following:
List – I List – II
(Subject) (Technique)
a. Entrepreneurship 1. Innovation
b. Marketing 2. Promotion Mix
c. Inventory Management 3. Reorder Level
d. HR Planning 4. Appraisals
Codes:
abcd
(A) 1 3 2 4
(B) 1 2 3 4
(C) 4 3 2 1
(D) 4 2 3 1
44. means identifying and imitating the best in the world at specific
tasks and functions.
(A) Quality circle
(B) Outsourcing
(C) Bench marking
(D) Continuous Improvement
45. Match the following:
(a) Action planning (i) New Actions are taken and old habits are
broken.

212
(b) Accountability (ii) It is the periodic review of what has
already been executed.
(c) Working the plan (iii) It is the art of delegation to implement a
business plan.
(d) Reviewing the progress (iv) Making decisions relating to the order in
which the Business plan is implemented.
Codes:
(a) (b) (c) (d)
(A) (ii) (iii) (iv) (i)
(B) (iv) (iii) (i) (ii)
(C) (i) (iv) (iii) (ii)
(D) (iii) (iv) (ii) (i)

June 2013
46. “An entrepreneur always searches for change, responds to it and exploits it
as an opportunity.” Who said it?
(A) F.W. Taylor
(B) Peter F. Drucker
(C) J.R. Tulsian
(D) Max Weber
47. An industrial unit, according to RBI, is sick if
(A) Incurred cash loss in the previous year.
(B) Likely to incur loss in the following year.
(C) Current ratio is less than 1 : 1 with weak debt-equity ratio.
(D) all of the above.
48. Which is not the object of Entrepreneurship Development
Programmes?
(A) To create successful entrepreneur
(B) To remove doubts of entrepreneurs and to give solutions to the problems

213
(C) To create awareness about Government schemes and programmes
(D) None of the above
49. Match the following:
a. Central Manufacturing Institute 1. Deals with paper industry
b. Central Pulp and Paper Research Institute 2. Deals with pollution
control in Indian Tannerics
c. Central leather Research Institute 3. Deals with Machine Tools
d. Electronic Service and Training Centre 4. Deals with training,
technical and consultancy services
Codes:
abcd
(A) 1 2 3 4
(B) 3 1 2 4
(C) 2 3 4 1
(D) 4 3 1 2
50. The customer joining the queue and leaving it afterwards is defined as
(A) Jockeying
(B) Balking
(C) Reneging
(D) None of the above

Dec 2012
51. Entrepreneurship as a theory of business was propounded by
(A) Douglas McGregor
(B) Thomas A. Coleman
(C) Joseph A. Schumpeter
(D) Adam Smith
52. Policies related to Revival of Sick Units are framed by

214
(A) IIFT (B) CSIR
(C) SEBI (D) MSME
53. The book „Innovation and Entrepreneurship‟ is written by
(A) Harold Koontz
(B) Blake and Mouton
(C) Peter F. Drucker
(D) None of the above
54. 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
55. Name the Author of Equity Theory of Motivation.
(A) Blake & Mouton
(B) Strube& Garcia
(C) Stancy Adams
(D) Albert Bandura

June 2012
56. Which one is not the characteristic feature of Entrepreneurship?
(A) Vision
(B) Risk Bearing
(C) Initiative and Drive
(D) Disloyalty
57. Which of the following organizations is meant for promoting small scale
industries at district level?
(A) SIDBI
(B) DIC

215
(C) SFCs
(D) NABARD
58. The reason for sickness of small scale industry is
(A) Lack of capital
(B) Lack of market
(C) Severe competition
(D) All the above
59. The measure taken by Government to promote small scale industry.
(A) Provision of land
(B) Provision of marketing facilities
(C) Arrangement of credit and raw materials
(D) All the above
60. Small and medium enterprises are
(A) Labor intensive
(B) Capital intensive
(C) Market leader
(D) Industry price determiner

Dec 2011
61. Service Sector is also called
(A) Primary Sector
(B) Secondary Sector
(C) Tertiary Sector
(D) None of the above
62. The definition of Micro, Small and Medium Enterprises (MSMEs) in India
is based on
(A) Total Sales of the Unit
(B) Investment in machines and equipments

216
(C) Market coverage
(D) Export capacity
63. Which one of the following agencies has the power to declare any industrial
unit as a potentially sick unit?
(A) BIFR (B) SIDBI
(C) IRCI (D) FICCI
64. The headquarters of the SIDBI is in
(A) Mumbai
(B) Lucknow
(C) New Delhi
(D) Hyderabad
65. In MSMED Act, 2006, the investment limit for Micro, Small and Medium
Enterprises have been prescribed as
(A) Rs10 lakhs, Rs5crores and Rs10crores
(B) Rs5 lakhs, Rs1 crore and Rs10 crores
(C) Rs5 lakhs, Rs1 crore and Rs5 crores
(D) Rs10 lakhs, Rs10 crores and Rs15 crores

June 2011
66. The MSMED Act, 2006 classified enterprises broadly into
(A) Two categories
(i) Manufacturing enterprises and
(ii) Service enterprises
(B) Three categories
(i) Micro enterprises
(ii) Small enterprises
(iii) Medium enterprises
(C) Four categories

217
(i) Micro enterprises
(ii) Small enterprises
(iii) Tiny enterprises
(iv) Medium enterprises
(D) Four categories
(i) Tiny enterprises
(ii) Micro enterprises
(iii) Small business enterprises
(iv) Medium enterprises
67. Which sector is called as Primary Sector in India?
(A) Industrial sector
(B) Service sector
(C) External sector
(D) Agricultural sector
68. How many times the census of registered Micro, small and medium
Enterprises (MSMEs) have been made by Small Industries Development
Organization (SIDO)?
(A) 1
(B) 2
(C) 3
(D) 4
69. EDII is situated at
(A) New Delhi
(B) Ahmedabad
(C) Patna
(D) Kolkata

218
70. Industrial Policy of which year contained for the very first time a special
thrust on measures for promoting and strengthening small tiny and village
enterprises
(A) 1956
(B) 1991
(C) 1948
(D) 1977

Dec 2010
71. A retrenchment strategy is designed to reduce
(A) Technical losses
(B) Financial losses
(C) The scale and scope of the business operation
(D) all of the above
72. World Trade Organization provides
(A) Rule based multilateral trading system.
(B) Equity and social justice to the people.
(C) Rule based regional trading system
(D) All of the above
73. Sick enterprise is referred to
(A) CII (B) RBI
(C) SIDBI (D) BIFR
74. Ethical values are derived from
(A) Corporate philosophy
(B) Organizational culture
(C) Corporate objectives
(D) The religious books

219
75. Which of the following is not related to business ethics?
(A) Social responsibility of business
(B) Environmental ethics
(C) Ecological consciousness
(D) Profiteering
76. Which of the following is the cause of sickness of an enterprise?
(A) Lack of adequate capital
(B) Lack of demand for the products
(C) Lack of raw material
(D) All of the above

June 2010
77. A growth strategy is designed to increase
(A) The scale and scope of the Business operations.
(B) The corporate image of the business.
(C) Corporate social responsibility of business.
(D) None of the above.
78. Cost leadership strategy is related to
(A) Functional strategy
(B) SBU strategy
(C) Corporate strategy
(D) Global strategy
79. Countries derive their competitive advantage in international trade through
their
(A) Comparative cost advantage
(B) Contribution to the World trade
(C) Natural endowments
(D) All of the above

220
80. Which analysis helps to understand the strength and weaknesses of a firm?
(A) Environment analysis
(B) Business analysis
(C) SWOT analysis
(D) None of the above
81. Which one of the following is not the social responsibility of business?
(A) Adopting village for development.
(B) Providing drinking water and medical facilities in remote villages.
(C) Construction of Temples.
(D) Opening in House R & D department.
82. What is the acronym for SIDBI?
(A) Short Investment Development Bank of India.
(B) Stock Investment Development Bank of India.
(C) Small Investment Development Bank of India.
(D) Small Industries Development Bank of India.

Dec 2009
83. Which of the following is an example of an external threat?
(A) New trade regulations (C) Economies of scale
(B) Global sales potential (D) Decreased competition
84. Which of the following has been entrusted with the responsibility of
developing and supporting small business?
(A) IDBI (C) NABARD
(B) RBI (D) SIDBI
85. “Innovation and entrepreneurship” is a book written by
(A) Philip Kotler (C) PradeepKhandwala
(B) C. K. Prahlad(D) Peter F. Drucker

221
June 2009
86. What BIFR stands for?
(A) Bureau of Industrial Financial Reconstruction
(B) Board of Industrial Financial Reconstruction
(C) Bureau of Industrial Financial Re-engineering
(D) Board of Industrial Financial Re-engineering
87. Which one of the following is not the reason for sickness of industries?
(A) Inadequate working capital
(B) Huge Market
(C) Out dated Technology
(D) Changing tastes of consumers

222
Unit X:- Business Ethics and Management System
Ethics and Management System Ethical Issues and Analysis in Management,
Value Based Organizations, Ethical Personal, Framework for Ethical Choices,
Pressure on Individual in Organizations, gender issues, Ecological
Consciousness, Environment Ethics: Social Responsibility of Business,
Corporate Governance and Ethics

Nov 2017
1. Statement I: - The science of ethics is a normative science

Statement II: - Normative Science judge the value of the facts in terms of an
idea: concerned with judgments of „what ought to be‟ but not with factual
judgments

Code:-

1. Statement I is correct but Statement II is incorrect

2. Statement II is correct but Statement I is incorrect

3. Both the Statements I and II are incorrect

4. Both the Statements I and II are incorrect

2. Match the items of List-I with those of List-II and choose the correct
combination:-

List-I List-II

a. Ethics are the principles of conduct governing

an individual or profession i. John Donaldson

b. Ethics is the discipline dealing with what is good

and bad, or right and wrong or with moral duty and

obligation ii. Keith Davis

c. Ethics are a set of rules that defines right and

223
wrong conduct iii Shea

d. Business ethics, in short can be described

as the systematic study of moral (ethical) matters

pertaining to business, industry or related activities,

institutions, or practices and beliefs iv. R. Wayne Mondy

Code:-

a b c d

1. iii iv i ii
2. iii iv ii I
3. iv iii ii i
4. i ii iii iv
3. Assertion A: - Decisions in small matters largely tend to set a pattern for the
more important ones you may make as managers.

Reasoning R: - A multi-industry survey conducted in USA indicated that 40%


of the managers said that their superiors had at some time told them to do
certain things unethical

Code: -

1. A and R both are correct and R is the right explanation of A


2. A is correct whereas R is incorrect
3. A is incorrect whereas R is correct
4. A and R both are correct but R is not the correct explanation of A
4. Deontological theory of ethics is concerned with which of the following?

a. Duty ethics

b. Obligation ethics

c. Rule based ethics

d. Classical ethics

Code: -

1. a and b

224
2. a and c

3. a and d

4. a, b, and c

5. Utilitarianism theory of ethics refers to which one the following?

1. Welfare

2. Duty

3. Obligation

4. Rules

Jan 2017
6. Statement – I: Ethical principles tend to be broader than legal
principles.

Statement – II: Laws and ethics are closely related.

Codes:

(1) Statement – I is correct but Statement – II is incorrect.

(2) Statement – II is correct but Statement – I is incorrect.

(3) Both the Statements are correct.

(4) Both the Statements are incorrect.

7. Assertion (A):The state shall endeavor to protect and improve the


environment and to safeguard the forest and wildlife of the country.

Reasoning (R): The Directive principles of state policy of the Indian


Constitution Command the State to ensure protection and improvement of
environment and to safeguard forest and wildlife.

Codes:-

1. (A) is correct but (R) is not correct.

2. (R) is correct but (A) is not correct.

3. Both (A) and (R) are correct and (R) is the right explanation of (A).
225
4. Both (A) and (R) are correct but (R) is not the right explanation of (A).

8. Match the items of List – I with List – II and identify the code of correct
matching:

List – I (CSR Models) List – II (Emphasis)

a. Ethical Model i. corporate responsibilities limited to private


owners

b. Statist Modelii. Voluntary commitment by companies to public welfare

c. Liberal Model iii. State ownership and legal requirements determine


corporate responsibilities.

d. Stakeholder Model iv. Companies respond to the need of customers,


communities, etc

Codes:-

a b c d

1.ii iii i iv

2. ii i iii iv

3. ii i iv iii

4. i iii ii iv

9. Which one among the following is not correct about J. J. Irani Committee‟s
recommendations on Company Law (2005):

(1) 2/5th of the board of a listed company should comprise of independent


directors.

(2) Introduce the concept of One Person Company (OPC).

(3) Allow corporations to self-regulate their affairs.

(4) Disclose proper and accurate compilation of financial information of a


corporation.

10. A business should act ethically for which of the following reasons?

(a) To prevent harm to the general public

226
(b) To meet stake-holder expectations

(c) To protect their own employees

(d) To maximize profit of the business

Codes:

(1) (a), (b) and (c) only (3) (a), (c) and (d) only

(2) (b), (c) and (d) only (4) (a) and (d) only

July 2016
11. Statement – (I): Ethical decision making is a very tough prospect in this
„dog-eat-dog‟ world. All will have to fall in and play fair.

Statement – (II): In this age of liberalization and globalization, the old dirty
games and ethical conduct will no longer be accepted.
Codes:

(1) Statement (I) and (II) both are incorrect.

(2) Statement (I) and (II) both are correct.

(3) Statement (I) correct, (II) incorrect.

(4) Statement (I) incorrect, (II) correct.

12. The three basic principles of business ethics are shown by which one of the
following?

(1) Utilitarianism, social commitment and reputation

(2) Utilitarianism, societal reputation and justice

(3) Utilitarianism, principle of right and principle of justice.

(4) Principle of right, principle of justice and social commitment

13. Gandhian concept of social responsibility is denoted by which one of the


following?

(1) Social commitment concept

(2) Trusteeship concept


227
(3) Sustainable development concept

(4) Welfare concept

14. CII Committee on Corporate Governance with SEBI as the Custodian of


investors constituted on 7th May 1999 is known by which one of the following?

(1) Dr. J.J. Irani Committee

(2) Kumar Mangalam Birla Committee

(3) Narayan Murti Committee

(4) Working group on the Companies Act

15. Which one of the following denotes good choices of ethical decision
making?

(1) (i) take choice seriously

(ii) Good decisions are both ethical and effective

(iii) Discernment and discipline

(2) (i) ethical actions

(ii) Discernment and discipline

(iii) Stage of social welfare

(3) (i) take choice seriously

(ii) Improve ethical decision

(iii) Discernment and discipline

(4) (i) good decision are both ethical and effective

(ii) Take choice seriously

(iii) Ethical actions

Dec 2015

228
16. Assertion (A): Social audit has been defined as a commitment to systematic
assessment of and reporting in some meaningful, definable domain of the
company‟s activities that have social impacts.

Reasons (R): The Companies Act 2013 has accorded statutory recognition of
the social responsibility of a corporate entity and gives option to provide a
percentage of profit for the purpose as per discretion of the board.

Code:

(1) Both (A) and (R) are correct, and (R) is the right explanation of (A).
(2) Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(3) (A) is correct but (R) is not correct.
(4) (R) is correct but (A) is not correct.
17. Which one of the following of „Immanuel Kant‟s‟ Principle, known as
categorical imperatives, is a guide to managerial action?

(1) The managers should be open to share his/her corporate secrets, individual
traits with external agencies.

(2) The managers be free and open to share his individual knowledge and
experience for community‘s gain.

(3) A person‘s action is ethical only if that person is willing for that same action
to be taken by everyone who is in a similar situation.

(4) A person always treats another human being simply as a means to an end.

18. Teleology in ethics supports which one of the following the most?

(1) It is duty-based ethics and measures whether an action is right or wrong.

(2) It measures whether the results of the actions are right or wrong.

(3) It focuses on purpose of each action and judges the consequences of an


action.

(4) It focuses on neutrality and fidelity of an action.

19. Assertion (A): Deontology is duty-based ethics. It is an approach to ethics


that addresses whether the motives behind certain action are right or wrong.

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Reason (R):Deontology focuses on whether the results of the actions are right
or wrong.

Code:

(1) Both (A) and (R) are correct

(2) (A) is correct and (R) is the right explanation of (A)

(3) (A) is correct but (R) is not the right explanation of (A)

(4) Both (A) and (R) are incorrect

20.Assertion (A) : Rules notified by the Ministry of Corporate Affairs (MCA)


Sec. 149 of the Companies Act mandates that a listed company having a paid up
share capital of Rs100 crore or more shall appoint at least one woman director
on its board.

Reasons (R):The corporate entities wanted to enhance gender equality and


woman empowerment in corporate governance and company administration.

Code:

(1) Both (A) and (R) are correct.

(2) (A) is correct and (R) is the right explanation of (A).

(3) (A) is correct but (R) is not the right explanation of (A).

(4) Both (A) and (R) are incorrect.

June 2015
21. Which of the following is/are the component(s) of Ethics by field of
interest?

(1) Descriptive ethics (3) Meta ethics

(2) Normative ethics (4) All of the above

22. What is the right sequence of four psychological sub-processes in ethical


action given by James Rest?
(1) Moral sensitivity, moral focus, moral judgment, moral character

230
(2) Moral focus, moral character, moral sensitivity, moral judgment

(3) Moral sensitivity, moral judgment, moral focus, moral character

(4) Moral character, moral focus, moral judgment, moral sensitivity

23. A new approach Learning Model” which is helpful to strengthen the


decision making process was developed by:

(1) Arthur Rich

(2) Bob Garratt

(3) Christian Wolff

(4) Lord Keynes

24. Assertion (A): Corporate behavior towards stakeholders is an


important concept in practice and a central part of corporate Governance.

Reason (R): It has to be ethical, legal and responsible behavior for organization,
stakeholders and society.

(1) Both (A) and (R) are true.

(2) Both (A) and (R) are false.

(3) (A) is false, but (R) is true.

(4) (A) is true, but (R) is not a correct explanation of (A).

25. CSR is important because:

(1) It influences all aspects of Company‘s operation

(2) It gives company‘s mission and strategy

(3) It increases the general affluence and societal expectation

(4) All of the above

Dec 2014
26. In view of competitive global economy, corporations are involved in cost
cutting, corporate restructuring, mergers and acquisitions and

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downsizing. All these activities can be carried out successfully only if there is
proper

(A) Business Ethics

(B) Ethical Audit

(C) Corporate Social Responsibility

(D) Corporate Governance

27. Statement (A): Law and moral standards overlap to a certain extent.

Statement (B): Law represents a minimum set of standards for regulating


human behavior in society.

(A) (A) and (B) both are incorrect.

(B) (A) is correct but (B) is not the right explanation of (A).

(C) (A) is correct and (B) is the right explanation of (A).

(D) (A) is incorrect and (B) is a correct statement in isolation.

28. In order to check the growing unethical practices in the field of information
technology, the first cyber law passed in India is
(A) Information Technology Act

(B) Anti-hacking Law

(C) Cyber Law

(D) E-commerce Law

29. Match the items of two lists, indicating the correct code:

List – I List – II

a. Transparency i. All stakeholder groups have the


opportunity to maintain or improve their well-being.

b. Equity ii. The State of being answerable for


decisions and activities to all stakeholders.

c. Sustainability iii. Information freely available and


directly accessible to interested parties.
232
d. Accountability iv. The effect which action taken in
the present has upon the options available in the future.

Codes:-

abcd

(A) iii i iv ii

(B) i ii iii iv

(C) ii iii i iv

(D) iii i ii iv

30. Which of the following is not a principle of CSR?

(A) Protecting Environment

(B) Avoiding price discrimination

(C) Promotional activities

(D) Adopting the labor policies

June 2014
31. Assertion (A): Ethical relativism means that there are universal standards
of human behavior.

Reasoning (R): Ethical behavior is primarily personal behavior conforming to


standards of morality.

(1) (A) is correct, and (R) is the right explanation of (A).

(2) (A) is incorrect, and (R) is a correct statement in isolation.

(3) (A) and (R) both are incorrect.

(4) (A) is correct, but (R) is not the right explanation of (A).

32. Clause 49 of SEBI Regulations was amended on

(A) 15 August, 2000

(B) 26 August, 2003

233
(C) 26 January, 2007

(D) 14 February, 2008

33. Fundamental legal obligations in taking corporate business decisions are


formulated on the basis of

(A) Judicial Principles

(B) Moral Principles

(C) Ethical Principles

(D) Legislative Principles

34. Corporate governance mechanism should ensure that corporate


executive make strategic decisions that serve the entire group of

(A) Environmentalists

(B) Government officials

(C) Suppliers

(D) Shareholders

35. Morality of an employee in a business organization depends upon

(A) Individual disposition

(B) Understanding of business activities

(C) Understanding of individual in a group

(D) Family setup of individual employee

Dec 2013
36. Indo-American Model of Corporate Governance sets top most priority to

(A) Business growth

(B) Customers

(C) Employees

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(D) Shareholders

37. A good governance in corporate sector depends upon

(A) Strong political will

(B) Transparency and accountability

(C) Trade Union practices

(D) Social and political responses

38. Corporate leaders in India in private sector are tempted by a very high target
of and the concerned employee has to achieve the target for promotion and
stability.

(A) Money making

(B) Business growth

(C) Product development

(D) Profit

39. Corporate business ethics is norms and pattern that spring


from organizational view of good and bad, right and wrong.

(A) Social

(B) Behavioral

(C) Institutional

(D) Individual

40. Trade Union strike supporting a political cause and affecting


production activities is a problem related to

(A) Socio-economic phenomenon

(B) Ethical and technical phenomenon

(C) Ethical and economic phenomenon

(D) Socio-political phenomenon

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Sept 2013
41. Which of the following duties is not a general duty of directors of a
company?

(A) Duty of good faith

(B) Duty of care

(C) Duty to attend Board Meeting

(D) Duty not to delegate

42. The principles to be followed for corporate social responsibility are

(A) Involvement of stakeholders.

(B) Maintaining transparency in reporting.

(C) Independent verification of policies and outcome.

(D) All of the above.

43. Match the following:

List – I List - II

(a) Value (i) AhamBrahmasmi

(b) Unethical behavior (ii) Recycling Waste

(c) Indian ethos (iii) Bribery

(d) Environmental responsibility (iv) Trust worthiness

Codes:
(a) (b) (c) (d)

(A) (i) (iii) (ii) (iv)

(B) (iv) (iii) (i) (ii)

(C) (ii) (iii) (iv) (i)

(D) (i) (iii) (iv) (ii)

236
44. The obligation of an organization behave in a ethical way is known as

(A) Knowledge about ethics

(B) Social responsibility of business

(C) Organizational behavior

(D) Business without ethics

45. Identify the correct sequence of steps in a value identification process:

(i) Define the role of executive in leading the staff.

(ii) Learn about and discuss the power of shared values.

(iii) Obtain consensus that the leaders are committed to creating value based
work place.

(iv) Provide written material the executives can share with their reporting staff.

Codes:

(A) (i), (ii), (iii) and (iv)

(B) (iv), (ii), (iii) and (i)

(C) (ii), (iii), (i) and (iv)

(D) (ii), (iii), (iv) and (i)

June 2013
46. Which among the following is not correct with regards to Clause 49 of
SEBI Act?

(A) It came into effect from 31st December 2005.

(B) Clause 49 is related to the Listing Agreement to the Indian Stock Exchange.

(C) It desires 50 percent independent Directors.

(D) None of the above

47. Which of the following powers of Directors cannot be exercised without the
consent of shareholders in General Meeting?

237
(A) Power to make calls on shareholders

(B) Power to make loans

(C) Power to buy back its shares

(D) Power to borrow monies exceeding the aggregate of the paid-up capital of
the company and its free reserves.

48. The professional having high ranking and trained to uphold the highest
standard and effective operations, compliance and administration as corporate
governance, is known as

(A) Directors of Company

(B) Chairman of Company

(C) Company Secretary

(D) Shareholders

49. Governance is the system of values, policies and institutions by which a


society manages its economic, political and social affairs through interactions
within and among the state, civil society and private sector is defined by

(A) World Bank

(B) UNDP

(C) European Commission

(D) None of the above

50. Match the following with regards to environmental ethical issues:

a. Ozone Depletion 1. Lead poisoning

b. Environmental Health 2. Deforestation

c. Logging 3. Food controversies

d. Genetic Engineering 4. CFC

Codes:

abcd

238
(A) 4 2 1 3

(B) 4 1 2 3

(C) 4 3 2 1

(D) 4 3 1 2

Dec 2012
51. 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

52. Ethics provide

(A) Consumer Autonomy

(B) CSR

(C) Justice

(D) All of the above

53. Company seeking ethical standard must purport to

(A) Good Employee Relation

(B) Better Production Portfolio

(C) Economy of Scale

(D) Public Disclosure and Publishing

54. 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

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(D) Paying Taxes to the Government

55. 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

June 2012
56. Business propositions are to be selected by making an analysis that, how
much the local resources will be depleted in the commencement and the course
of Business. This is known as

(A) Sensitivity Analysis

(B) Common Property Resource use

(C) Environmental Impact Assessment

(D) None of the above

57. Whistle-Blowers are

(A) To be removed from the jobs

(B) To be promoted

(C) To be rewarded for the organizational enrichment

(D) To be protected since they intend to bring out truth

58. Funding through Micro finance to Small and Micro Enterprises is not
successful due to

(A) High rate of interest

(B) Out sourcing of method of providing Micro Finance

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(C) (A) & (B)

(D) None of the above

59. “Work-Diversity” by nature, does not go against Ethics. But an executive


assistant while getting transferred from “stores” to “dispatch” section created
turmoil in the office. He is

(A) Most ethical in his deal

(B) Fully against work ethics

(C) He is workoholic

(D) A Rigid employer, hard nut to crack

60. Ethical Management is

(A) A Compromise

(B) A Compulsion

(C) A Judgment

(D) (A) and (B)

Dec 2011
61. The study of moral principles or values that determine whether actions are
right or wrong and outcomes are good or bad refers to following:

(A) Quality (B) Ethics

(C) Opinions (D) Controls

62. Match List – I with List – II:

List – I List – II

(Terms relating to Ethics) (Conceptual description of terms relating to


Ethics)

I. Ethical Climate 1. Each society‟s view of ethics must be


considered legitimate and ethical

241
II. Ethical Relativism 2. There are basic moral principles that
transcend cultural and political boundaries

III. Ethical Universalism 3. People pick-up subtle hints and clues that tell
them what behavior is approved and what is forbidden.

IV. Ethical Convergence 4. There are growing pressures on international


business to follow the same rules in managing ethical behavior and social
responsibility

Codes:

I II III IV

(A) 3 1 2 4

(B) 1 3 2 4

(C) 1 4 3 2

(D) 4 1 2 3

63. An organization‟s moral obligation toward all of its stakeholders is referred


as following:

(A) Value in workplace

(B) Corporate social responsibility

(C) Ethical behavior

(D) Professionalism

64. is the manager‟s dilemma when he has to decide on the


commercial proposal submitted by his son.

(A) Favoritism

(B) Moral Dilemma

(C) Conflict of Interest

(D) None of the above

65. “Make use of paper bags instead of plastic bags.” It is related to

(A) Environmental Ethics


242
(B) Green Marketing

(C) Socially Responsible Marketing

(D) Social Marketing

June 2011
66. Members of organizations are increasingly finding themselves facing
situations in which they are required to define right and wrong conduct. It is
most aptly called as following

(A) Environmental issues of ethics

(B) Social responsibilities of business

(C) Corporate governance & ethics

(D) Ethical Dilemmas of business

67. Situations in which individuals are required to define right and wrong
conduct to be complied with are called as following

(A) Ethical climate

(B) Ethical dilemmas

(C) Code of Ethics

(D) None of the above

68. Arrange the following steps of a simple ethics programme

I. Walk the talk

II. Size up your company‟s current ethics

III. Train your people

IV. Solicit feedback from your employees

V. Create a code of conduct

Code:

(A) V, I, IV, II, III

243
(B) II, V, IV, III, I

(C) II, V, III, IV, I

(D) II, IV, III, II, I

69. Who is involved in „Shoplifting‟ from the following?

(A) Producer

(B) Seller

(C) Consumer & or a customer

(D) None of the above

70. Match List-I with List-II.

List – I List – II

(Ethical Issue)(Stakeholder affected)

I. Unsafe working conditions 1. Customers

II. Product safety 2. Society

III. Environmental Pollution 3. Employees

IV. Following local laws 4. Host Country

Code:

I II III IV

(A) 2 4 3 1

(B) 3 1 2 4

(C) 1 3 4 2

(D) 3 2 1 4

Dec 2010
71. Value driven companies are

(A) Sure to be successful in the long run.

244
(B) Sure to be unsuccessful as they are not maximizing profits.

(C) Sure to become charitable institutions.

(D) None of the above

72. Which of the following is not a tool of corporate governance?

(A) Preparation of financial statements

(B) Appointment of independent directors.

(C) Compulsory audit of financial statements.

(D) Time bound promotion of employees.

73. Which of the following is not the social responsibility of the business?

(A) Promotion of Markets

(B) Promotion of Green Environment

(C) Promotion of Education

(D) Promotion of Public Health

74. The Business Code of Conduct provides guidance to managers and


employees

(A) When they encounter an ethical dilemma.

(B) For improving their technical skills.

(C) For pursuing their business goals.

(D) All of the above

June 2010
77. Identify from the options given below, which one is not a source of
business ethics?

(A) Religion

(B) Legal system

(C) Culture

245
(D) Political system

78. Where law fails,

(A) Ethics also fails

(B) Ethics can succeed

(C) Government can protect

(D) None of the above

79. Which one of the options is not an ethical issue for an organization?

(A) Save water

(B) Save energy

(C) Save money

(D) Respect woman

80. Which of the following is an example of an external threat?

(A) Economies of scale

(B) Decreased competition

(C) New Trade Regulations

(D) Global sales potential

Dec 2009
83. Strategizing within value frame work is an approach of

(A) Management (C) Governance

(B) Administration (D) Stake holders

84. Social responsibility means that a business

(A)Functions efficiently without harming the society

(B)Abjures the profit motive


(C) Keeps pollution under check

246
(D) Pays its Taxes to Government

June 2009
85. Environmental Ethics refers to:

(A) Unfair Trade Practices (C) Product price

(B) Pollution (D) Quality of the product

86. Corporate governance includes management of:

(A) Employees (C) Society

(B) Organization (D) All of the above

247
SECTION 2
FULL PAPERS
WITH
ANSWERS

248
UGC NET PAPER II NOVEMBER 2017
1. Managerial economics is concerned with which combination of the
following?

(a) Investment Analysis and Decisions

(b) Production Behavior and Cost Analysis

(c) Input Reward Analysis and Decisions

(d) Economic Environment Analysis

Code:

(1) (a), (b) and (c)

(2) (b), (c) and (d)

(3) (a), (b) and (d)

(4) (a), (c) and (d)

2. When P0 and P1 and Q0 and Q1 denote before and after change in the price
and quantity respectively and in both the situations, total outlay remains the
same, which of the following formulae give the similar value of the arc price -
elasticity of demand?

(a) Qo-Q1 X Po+ P1 ( b) Qo-Q1 X Po

Po-P1 Qo+Q1 Po-P1 Q1

(c) Qo-Q1 X Po (d) Qo-Q1 X P1 (e) Qo-Q1 X P1

Po-P1 Qo Po-Q1 Q1 Po-P1 Qo


Code:

(1) (b), (c) and (e)

(2) (a), (b) and (e)

(3) (a), (c) and (e)

(4) (b), (c) and (d)


249
3. In case the producer‟s equilibrium shifts to a higher isoquant due to decrease
in price of aninput, the curve combining the successive equilibrium positions is
known as:

(1) Product Possibility Curve (2) Price Factor Curve

(3) Expansion Path (4) Product Line

4. Which one of the following statements is not correct?

(1) Marginal cost declines at a faster rate as compared to the average cost.

(2) Marginal cost rises at a faster rate as compared to the average cost.

(3) Marginal cost equals average cost where average cost is minimum.

(4) Average cost equals marginal cost where marginal cost is minimum.

5. Cost - Plus pricing is not suitable for:

(1) Product Tailoring (2) Profit Maximizing

(3) Monopsony Pricing (4) Public Utility Pricing

6. Match the following and select the correct code of matching :


List - I List - II
(a) F.W. Taylor (i) Fair day‘s pay for fair day‘s work
(b) Henry L. Gantt (ii) Motion study
(c) Frank and Lillian Gilbreth (iii) Graphic scheduling for planning and
controlling of work
(d) Max Weber (iv) Bureaucratic organization
Code:
(a) (b) (c) (d)
(1) (i) (ii) (iii) (iv)
(2) (i) (iii) (ii) (iv)
(3) (iv) (iii) (ii) (i)
(4) (iv) (i) (ii) (iii)

250
7. The achievement of goals with the least amount of resources is:
(1) Effectiveness
(2) Efficiency
(3) Productivity
(4) Both (1) and (2)
8. Which one of the following is the fundamental rethinking and radical
redesign of business processes to achieve improvements in performance?
(1) Reengineering (2) Reorganizing
(3) Revisiting (4) Rescheduling
9. Match the following and select the code of correct matching:
List - I List - II
(a) Motivating through rewards (i) Charismatic leadership and
penalties
(b) Changing organization by creating (ii) Situational leadership and
communicating a vision
(c) Influencing by dint of personality (iii) Transactional leadership and
charm
(d) Modifying style with respect to (iv) Transformational leadership readiness
of followers
Code:
(a) (b) (c) (d)
(1) (iii) (i) (ii) (iv)
(2) (iii) (iv) (i) (ii)
(3) (iii) (iv) (ii) (i)
(4) (iv) (iii) (ii) (i)
10. Which one of the following is not a „hygiene factor‟ of Herzberg‟s Two
Factor theory?
(1) Interpersonal relations (2) Working conditions
(3) Responsibility (4) Job security

251
11. Assertion (A): Promotion is a move within the organization to a higher
position that has greater responsibilities and requires more advanced skills.

Reasoning (R): Promotion may not involve a raise in status but a hike in
salary is a must.

Code:

(1) (A) and (R) both are correct.

(2) (A) and (R) both are incorrect.

(3) (A) is correct whereas (R) is incorrect.

(4) (A) is incorrect whereas (R) is correct.

12. Match the following and select the code of correct matching:

List - I List – II

(a) Identification of leadership potential (i) Vocational Tests

(b) Finding most suitable area of working (ii) Aptitude Tests

(c) Discovering interest and potential (iii) Intelligence


Tests for acquiring skills

(d) Measuring capacity to think, learn (iv) Personality


Tests and draw relationships

Code:

(b) (b) (c) (d)

(1) (iv) (iii) (ii) (i)

(2) (i) (ii) (iii) (iv)

(3) (iv) (i) (ii) (iii)

(4) (i) (iii) (ii) (iv)

13. Which one of the following is a facility to file anonymous complaints?

(1) Juke Box (2) Wide Box (3) Gripe Box (4) Hard Box

252
14. Which of the following is/are not gain sharing plan(s)?

(a) Scanlon Plan

(b) Rucker Plan

(c) Employee Stock Option Plan

(d) Improshare Plan

Code:

(1) (c) only

(2) (d) only

(3) (c) and (d) both

(4) (b), (c) and (d)

15. In which one of the following methods of performance appraisal,


predetermined percentages of rates are placed in various performance
categories?

(1) Alternation Ranking Method

(2) Forced Distribution Method

(3) Paired Comparison Method

(4) Check - list Method

16. Indicate the correct code for the combination from the following regarding
the superiority of the wealth maximization over the profit maximization
objective of the financial management:

(a) It takes into account long term stability and survival of the firm.

(b) It takes care of all other objectives of the firm like exploring and expanding
markets, etc.

(c) It is based on the assumption of perfect competition in the market.

(d) It considers risk along with returns.

253
Code:

(1) (a), (b), (c) and (d)

(2) (b), (c) and (d)

(3) (a), (b) and (d)

(4) (a), (c) and (d)

17. The controller function of the financial management concerns with:

(1) Advertising the public issue of the firm

(2) Negotiating with banks for loans

(3) Analyzing variance between standard costs and actual costs

(4) Estimating the future cash flows from certain project

18. Capital Asset Pricing Model (CAPM) for risk measurement has been given
by:

(1) Sharpe and Lintner

(2) Lintner and Treynor

(3) Sharpe, Lintner and Treynor

(4) Lintner, Modigliani and Miller

19. Beta (β) is a measure of:

(1) Systematic Risk (3) Total Risk

(2) Unsystematic Risk (4) Business Risk

20. Capital budgeting is concerned with:

(1) Arranging cash resources for the project.

(2) Managing the working capital of the firm.

(3) Managing the fixed assets through repairs and renewals.

(4) Evaluating the returns and investment in projects.


254
21. Which one of the following is the demand state where “Consumers dislike
the product and may even pay to avoid it”?

(1) Unwholesome demand (3) Negative demand

(2) Declining demand (4) Latent demand

22. Evaluate the statements according to Brand Asset Valuator Model of Brand
Equity:

Statement (I): Knowledge measures the degree to which a brand is seen as different
from others as well as its pricing power.

Statement (II): Esteem measures perceptions of quality and loyalty or how well
the brand is regarded and respected.

Code:

(1) Both the Statements are correct.

(2) Both the Statements are incorrect.

(3) Statement (I) is correct while Statement (II) is incorrect.

(4) Statement (I) is incorrect while Statement (II) is correct.

23. If a coaching institute provides some supporting study material along with
teaching, then which one of the following service mix category would it be?

(1) Hybrid offering

(2) Major Service with accompanying minor goods and services

(3) Tangible good with accompanying services

(4) Pure service

24. Statement (I): A low market - penetration index indicates substantial growth
potential for all the firms.

Statement (II): Generally, price competition increases and margins fall when
the market -penetration index is already high.

255
Code:

(1) Both the Statements are correct.

(2) Both the Statements are incorrect.

(3) Statement (I) is correct while Statement (II) is incorrect.

(4) Statement (I) is incorrect while Statement (II) is correct.

25. Which one of the following is a system of partnerships and alliances that a
firm creates to source, augment, and deliver its offerings?

(1) Value network

(2) Omnichannel marketing

(3) Integrated marketing channel system

(4) Direct marketing channel

26. Statement (I): Time study is an area of study whose fundamental purpose is
to set time standards for work using different methods.

Statement (II): Work measurement is a structured process of directly observing


and measuring (using a timing device) human work in order to establish the
time required for completion of the work by a qualified worker when working at
a defined level of performance.

Code:

(1) Both the Statements are correct.

(2) Both the Statements are incorrect.

(3) Statement (I) is correct while Statement (II) is incorrect.

(4) Statement (I) is incorrect while Statement (II) is correct.

27. Which one of the following combinations of the characteristics of the


popular layouts is not matching?

Factors Fixed Product Process Cellular


Layout Layout Layout Layout
(1) Material Fixed Path Variable Often high Variable
Travel Path Path path

256
(2) Process Ship Continuous Job or Small to
Building and small Batch medium
Repetitive batch
(3) Product Made to Standardized Diversified Diversified
order, low Product products products
volume using
common
operations
(4) Utilization Moderate Very high General High
of facilities Purpose

Answer is Option 1
28. In the context of distinguishing between forecasting and prediction, which
one of the following statements is false?
(1) Forecasting is based on a theoretical model while prediction may be based
on intuition.
(2) Forecasting reflects management‘s judgment after taking all available
information into account; while prediction involves the projection of the past
into the future.
(3) Error analysis is possible in the case of forecasting while no error analysis is
done in the case of prediction.
(4) No objectivity is found in the case of prediction.
29. An activity that consumes no time but shows precedence among activities
is known as:
(1) Slack activity (2) Successor activity
(3) Dummy activity (4) Critical activity
30. Which one of the following is not correct matching between level of facility
planning and type of activity?
(1) Global level and site location and selection
(2) Macro layout level and Site planning
(3) Micro layout level and Cell design
(4) Sub - Micro layout level and work station and Cell design

257
31. Which one of the following statements is false?
(1) Sample space refers to the collection of all favorable outcomes of an
experiment.
(2) Collectively exhaustive events are those whose union is sample space.
(3) All the outcomes of an experiment are known as sample space.
(4) Two events are said to be independent if the happening of one does not
affect the probability of happening of the other.
32. Which one of the following is a false statement?
(1) A binomial distribution involves infinite number of trials
(2) The mean and the variance of a Poisson distribution are equal
(3) The standard normal distribution has μ=0 and s=1
(4) The standard deviation of an exponential distribution is equal to its mean
33. In the context of coefficient of correlation (r), match the items of List - I
with the items of List - II and select the code of correct matching:
List - I List – II
a. 1- r²
√ni. Probable error of r

b. (0.6745) 1- r²
√nii. Coefficient of determination

c. r² iii. Standard error of r


Code:-
a b c
1. ii i iii
2. iii ii i
3. ii iii i
4. i ii iii
34. Which one of the following statements is true?
(1) If one of the regression coefficients is greater than one, the other must also
be greater than one.
(2) The product of the two regression coefficients is always more than one.
258
(3) Correlation coefficient is the arithmetic mean of the two regression
coefficients.
(4) The signs of the two regression coefficients are always the same.
35. In the absence of which of the following, SPSS can be used as an alternate?
(1) MS Word
(2) MS Excel
(3) MS Access
(4) MS Datapro
36. Match the items of List-I and List-II and select the code of correct
matching:-
List- I List-II
(d) Merger of Vodafone and Idea (i) Business Strategy
(e) Launch of Apple iPhone 7plus (ii) Operational Strategy
(f) Manufacturing Samsung mobile
Handsets in India (iii) Corporate Strategy
Code:
a b c
1. iii i ii
2. iii ii i
3. ii iii i
4. ii i iii
37. Which among the following are 5ps of strategy as identified by Mintzberg?
a. Plan
b. Problem
c. Pattern
d. Position
e. Ploy
f. Perspective

259
Code:-
1. a, b, c, d and e
2. a, b, d, e and f
3. b, c, d, e and f
4. a, c, d, e and f
38. Assertion (A): A firm‟s relative position within its industry determines
whether the firm‟s overall profitability is above or below the industry average.
Reasoning (R): The fundamental basis of average profitability in the long run is
sustainable competitive advantage
Code:-
1. A and R both are correct and R is the right explanation of A
2. A and R both are correct but R is not the right explanation of A
3. A is correct but R is incorrect
4. R is correct but A is incorrect
39. Statement I:- A “Star” is the market leader in a high-growth market; and it
has sufficient cash to support other businesses.
Statement II:- “Dogs” have weak market share in high-growth market.
Code:-
1. Statement I is correct but II is incorrect.
2. Statement is correct but I is incorrect.
3. Both the Statements I and II are correct
4. Both the Statements I and II are incorrect
40. Which among the following is not a generic strategy?
1. Unity Strategy
2. Cost Leadership Strategy
3. Differentiation Strategy
4. Niche Strategy

260
41. Elements of entrepreneurial competencies, according to the theorist of the
subject, pertain to which one of the following?
(1) Body of knowledge, set of skills, cluster of appropriate motives and traits
(2) Ability to prepare viable project, executional skills and materialization of
group goals
(3) Ability to work in a group, enforce group dynamics and motivate employees
(4) Assigning priorities to hierarchy of Maslow‘s monetary needs and non-
monetary needs
42. Under the new norms of Micro, Small and Medium Enterprises
Development (MSMED) Act 2006, the criteria of investment limit in plant and
machinery for MSME falls under which one of the following category?

(1) Micro Rs25 lakh, small Rs5 crore, Medium Rs10 crore

(2) Micro Rs20 lakh, small Rs2.5 crore, Medium Rs5 crore

(3) Micro Rs20 lakh, small Rs6 crore, Medium Rs8 crore

(4) Micro Rs25 lakh, small Rs10 crore, Medium Rs15 crore

43. Entrepreneurial Judo strategy aims at which one of the following?

(1) Filling holes left by others in the industry.

(2) Developing effectiveness in the industry.

(3) Mobilizing finance and effective use to reduce NPAs.

(4) Creating competitive environment in the environment of SMMEs.

44. Preparation of a business plan as a pre-requisite to a promotion of a


business enterprise, relates to which one of the following?

(1) There are no flaws in the business idea, the fashion, conviction and tenacity
of the entrepreneur.

(2) Make arrangement for finance and prevent occurrence of NPAs by business
entity.

(3) Ensure that business entity works at break-even level.

261
(4) Make plan to raise finance from market and alternative investment
opportunities

45. Federation of Associations of Small Industries of India (FASII) promoted


in 1959 is which one of the following type?

(1) Government organization

(2) Liaisoning organization

(3) Small Scale unit

(4) SSI Board

46. Statement (I): The science of ethics is a normative science.

Statement (II): Normative sciences judge the value of the facts in terms of an
idea; concerned with judgments of „what ought to be‟ but not with factual
judgments.

Code:

(1) Statement (I) is correct but Statement (II) is incorrect.

(2) Statement (II) is correct but Statement (I) is incorrect.

(3) Both the Statements (I) and (II) are incorrect.

(4) Both the Statements (I) and (II) are correct.

47.Match the items of List-I with those of List-II and choose the correct
combination:-

List-I List-II

a. Ethics are the principles of conduct governing

an individual or profession i. John Donaldson

b. Ethics is the discipline dealing with what is good

and bad, or right and wrong or with moral duty and

obligation ii. Keith Davis

c. Ethics are a set of rules that defines right and

262
wrong conduct iii Shea

d. Business ethics, in short can be described

as the systematic study of moral (ethical) matters

pertaining to business, industry or related activities,

institutions, or practices and beliefs iv. R. Wayne Mondy

Code:-

a b c d

1. iii iv i ii
2. iii iv ii i
3. iv iii ii i
4. i ii iii iv
48. Assertion A: - Decisions in small matters largely tend to set a pattern for the
more important ones you may make as managers.

Reasoning R: - A multi-industry survey conducted in USA indicated that 40%


of the managers said that their superiors had at some time told them to do
certain things unethical

Code: -

1. A and R both are correct and R is the right explanation of A


2. A is correct whereas R is incorrect
3. A is incorrect whereas R is correct
4. A and R both are correct but R is not the correct explanation of A
49. Deontological theory of ethics is concerned with which of the following?

a. Duty ethics

b. Obligation ethics

c. Rule based ethics

d. Classical ethics

Code: -

1. a and b

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2. a and c

3. a and d

4. a, b, and c

50. Utilitarianism theory of ethics refers to which one the following?

1. Welfare

2. Duty

3. Obligation

4. Rules

264
UGC NET PAPER II JANUARY 2017
1. Indicate the correct code for the scope of managerial economics from the
following:

a. Demand Analysis

b. Production and Cost Analysis

c. Pricing and Investment Decisions

d. Factor pricing Decisions

e. Economic Environmental Analysis

Codes:

(1) a, b, c, d (2) b, c, d, e

(3) a, b, c, e (4) a, c, d, e

2. Price elasticity of demand for a product is measured by

(1) Ed = ΔQ × ΔP(2) Ed = ΔQ ÷ ΔP

Q P Q P

(3) Ed = ΔP × Q (4) Ed = ΔP ÷ ΔQ

ΔQ P P Q

(Where Ed = elasticity of demand, Q = Quantity, P = Price and Δ = represents


change)

3. Which one of the following will be the appropriate pricing strategy for a new
product expecting an expanding market?

(1) Monopoly pricing (2) Skimming pricing

(3) Penetrating pricing (4) Differential pricing

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

List – I List – II
265
i. Loss Leader a. Locational price differentials

ii. Unchanged Pricingb. Products with high initial demands

iii. Basing Point pricing c. Product line pricing

iv. Skimming Pricing d. Oligopoly pricing

Codes:

i ii iii iv

(1) a b c d

(2) c d a b

(3) d b a c

(4) c a b d

5. In case the firm makes varying investments on the different investment


projects, the appropriate project evaluation technique would be, which one of
the following?

(1) Average annual rate of return technique

(2) Payback period technique

(3) Net present value technique

(4) Profitability index technique

6. According to Henry Fayol, which one of the following combinations of


qualities are required in a manager?

(1) Physical, mental, experience, educational and conceptual

(2) Technical, human, conceptual, mental and moral

(3) Physical, mental, moral, educational, technical and experience

(4) Mental, moral, conceptual, educational, technical and experience

7. Neo-classical organization theory emphasizes on which one of the


following?

(1) Flat structure of organization

266
(2) Tall structure of organization

(3) Coordination by hierarchy

(4) Unity of command

8. According to Graicuna‟s formula of span of management, if a superior has


threesubordinates, what number of cross-relationships would be?

(1) Three

(2) Six

(3) Nine

(4) Eighteen

9. In Reddin‟s „Tridimensional Grid‟, which one of the following is a less


effective style of leadership?

(1) Developer (2) Missionary

(3) Executive (4) Bureaucrat

10. Assertion (A): Attribution theory is based on relationship between


personal perception and interpersonal behavior.

Reasoning (R): Since most „whys‟ are not directly observable, people must
depend upon cognitions, particularly perception.

Codes:

(1) (A) is right but (R) is wrong.

(2) (A) is wrong but (R) is right.

(3) Both (A) and (R) are right but (R) does not explain (A).

(4) Both (A) and (R) are right and (R) explains (A).

11. Arrange the following steps of training and development process in the right
sequence:

a. Need analysis

b. Validation

267
c. Evaluation

d. Implement the programme

e. Instructional design

(1) a, e, d, c, b (2) a, e, c, b, d

(3) a, e, b, d, c (4) a, b, e, c, d

12. Which one of the following is related to „Standard of Personnel‟?

(1) Job Specification (2) Job Description

(3) Job Design (4) Job Evaluation

13. If an employee desires to pay more than the minimum required contribution
under the Employees‟ Provident Fund and Miscellaneous Provisions Act,
1952, then

(1) Employer shall also pay an amount equal to the total contribution of
employee.

(2) Employer shall pay only half of the additional contribution of employee.

(3) Employer is under no obligation to pay the additional contribution.

(4) The act is silent regarding this matter.

14. Under the Employees‟ State Insurance Act, 1948, sickness benefit can be
paid for which one of the following maximum periods?

(1) 45 days in two consecutive benefit periods.

(2) 66 days in two consecutive benefit periods.

(3) 91 days in two consecutive benefit periods.

(4) 180 days in two consecutive benefit periods.

15. Which one of the following laws is enacted by the Central Government and
enforced by the State Governments?

(1) The Employees State Insurance Act, 1948

(2) The Employees‘ Provident Fund and Miscellaneous Provisions Act, 1952

268
(3) Factories Act, 1948

(4) The Mines Act, 1952

16. The cost of external equity can be most appropriately computed as per the

(1) Earnings price ratio

(2) Dividend price ratio

(3) Dividend price plus growth ratio

(4) Capital assets pricing model

17. For the following items in List – I and List – II, indicate the correct code
after matching them:

List – I List – II

i. Net income approach for capital structure a. Modigliani, M. and Miller


M.H.

ii. Net operating income approach for capital structure b. Robert


Bruner

iii. Irrelevance of capital structure for the value of the firm. c. Ezra
Soloman

iv. FRICT analysis for capital structure d. David Durand

Codes:

i ii iii iv

(1) a b c d

(2) d c a b

(3) d c b a

(4) b a d c

18. Which one of the following is not a feature of „Preference Shares‟?

(1) Prior claim on income / assets of the company over equity shareholders.

269
(2) Redeemability after certain period.

(3) Possessing voting rights on important issues of the company.

(4) May possess the right to participate in surplus profits of the company.

19. The basic consideration for dividend pay-out for a company excludes which
one of the following?

(1) Investment opportunities for the company

(2) Expectations of the shareholders of the company

(3) Legal and financial restrictions for the company

(4) Stability of the dividend considerations

20. For the following two statements of Assertion (A) and Reasoning (R)
indicate the correct code:

Assertion (A): Shareholders Wealth Maximization (SWM) and not the profit
Maximization is an appropriate and operationally feasible financial management
goal.

Reasoning (R): There exists a principal-agent relationship between the shareholders


and the management of the company.

Codes:

(1) (A) and (R) both are correct.

(2) (A) is correct but (R) is incorrect.

(3) (A) is incorrect but (R) is correct.

(4) (A) and (R) both are incorrect.

21. Which one of the following components is not the part of broad marketing
environment?
(1) Technological environment
(2) Task environment
(3) Demographic environment
(4) Natural environment

270
22. The Coco Cola Company markets a wide range of different beverage
products including bottled water, soft-drinks, juices and sports drinks. Each
product appeals to a different segment. This is an example of which type of
market offering?
(1) Differentiated marketing
(2) Target marketing
(3) Undifferentiated marketing
(4) Intensified marketing
23. Temporarily reducing prices to increase short-run sales is an example of
which one of the following?
(1) Segmented pricing (2) Promotional pricing
(3) Dynamic pricing (4) Geographical pricing
24. Match the items of List – I with the items of List – II and indicate the code
of correctmatching:

List – I List – II
a. Brand elements i. The marketer‘s vision of what the brand must be and
do for consumers.

b. Brand line ii. All products, original as well as line and


category extensions, sold under a particular brand name.
c. Brand personality iii. Those trademark able devices that serve to
identify and differentiate the brand.
d. Brand promise iv. The specific mix of human traits that may be
attributed to a particular brand.
Codes:
abcd
(1) iii ii iv i
(2) i ii iii iv
(3) iii i iv ii
(4) iv iii ii i

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25. Statement – I: In developing advertising programme marketing managers
must always start by identifying the target market and buyer motives.

Statement – II: A company may run multiple ad campaigns at the same time,
each emphasizing different aspects of its brand and service.

(1) Only Statement – I is correct.

(2) Only Statement – II is correct.

(3) Both Statements – I and II are correct.

(4) Both Statements – I and II are incorrect.

26. Match the items of List – I with the items of List – II and select the code of
correct matching with regard to forecasting models for operations:

List – IList – II

(Model Type (name)) (Description)

a. Delphi technique i. Causal quantitative


model

b. Economic modeling ii. Quantitative model


(Naive)

c. Exponential Smoothing iii. Qualitative model

Codes:

abc

(1) i ii iii

(2) iii i ii

(3) iii ii i

(4) ii iii i

272
27. In which one of the following situations, a product-oriented layout is
appropriate?
(1) A medical clinic
(2) An automated carwash
(3) A work Centre for welding, heat treating and painting
(4) A home plumbing repair business.
28. A graphic tool to trace the interaction of several workers with one machine
is termed as
(1) Gang process chart (2) Flow process chart
(3) Activity chart (4) Operation chart
29. Which one of the following is a technique of statistical quality control used
for product control?
(1) R-chart (2) Sampling plan
(3) np-chart (4) control-chart
30. The decision-criterion in which a decision-maker selects an alternative that
maximizes H (criterion of realism) = [a × (maximum in column)] + [(1
a) × (minimum in column)] is called
(1) Laplace criterion (2) Hurwicz criterion
(3) Wald‘s criterion (4) Bayesian criterion
31. Which one of the following expressions relates to an event which
represents the occurrence of either A or B or both?
(1) A ∪ B
(2) A ∩ B
(3) ––
A∩B

(4) (A ∩ ⁻ B) ∪ (⁻ A ∩ B)

32. A Bernoulli process has all but which one of the following properties?
(1) Each trial has two possible outcomes.
(2) The probability of a success on any trial remains fixed over time.

273
(3) The probability of success on any trial is equal to the
Probability of failure.
(4) Trials are statistically independent.
33. Statement – I: The product of coefficient of correlation, standard deviation
of variable „X‟ and Standard deviation of variable „Y‟ gives the measure of
covariance between X and Y variables.
Statement – II : The product of coefficient of correlation between X and Y
variables and the ratio between standard deviation of X variable to standard
deviation of Y variable measures the slope of the regression line of X on Y
variable.
Codes:
(1) Both the Statements are correct.
(2) Both the Statements are incorrect.
(3) Statement – I is correct while Statement – II is incorrect.
(4) Statement – I is incorrect while Statement – II is correct.
34. Statement – I: Both the probable error and standard error of the coefficient
of correlation are different.
Statement – II: When a sampling distribution of mean is prepared by taking
small sized samples from a normally distributed population, the distribution
takes the shape of normal distribution.
Codes:
(1) Both the Statements are correct.
(2) Both the Statements are incorrect.
(3) Statement – I is correct while Statement – II is incorrect.
(4) Statement – I is incorrect while Statement – II is correct.
35. Which one of the following is not the major characteristic of internet?
(1) Open (2) Expensive
(3) Global (4) Untrusted

274
36. Assertion (A): Private foreign capital lends to flow to the high profit areas
rather than to the priority sectors.
Reasoning (R): One of the important limitations to utilize the foreign capital is
the absorptive capacity of the recipient country.
Codes:
(1) (A) and (R) both are correct and (R) is the correct explanation of (A).
(2) (A) and (R) both are correct but (R) is not the correct explanation of (A).
(3) (A) is correct whereas (R) is incorrect.
(4) (R) is correct whereas (A) is incorrect.
37. Consider the following statements and identify the correct code of true
statements:
(a) When an organization‘s survival is threatened and it is not competing
effectively, retrenchment strategies are often needed.
(b) Turnaround strategy is used when an organization is performing well but has
not yet reached a critical stage.
(c) Divestment strategy involves selling the business or setting it up as a
separate corporation.
(d) Liquidation strategy involves closure of business which is no longer
profitable.
Codes:
(1) Only (a), (b) and (c) are correct.
(2) Only (b), (c) and (d) are correct.
(3) Only (a), (c) and (d) are correct.
(4) Only (a) and (d) are correct.

38. Statement – I: Most businesses start off as “Question Marks”, in that they
enter a high growth market in which there is already a market leader. Statement
– II: A “Star” is the market leader in a high-growth market, but it does not
necessarily provide much cash.

(1) Statement – I is correct but Statement – II is incorrect.

275
(2) Statement – II is correct but Statement – I is incorrect.
(3) Both the Statements are incorrect.
(4) Both the Statements are correct.
39. Match the items of List – I with List – II and identify the code of correct
matching:
List – I List – II
a. Consistent actions one time i. A perspective
b. It reflects the decision of the firm to offer
particular products or services in particular markets. ii. A ploy
c. A manoeuvre intended to outwit competitor iii. A position
d. A view of what the organization is to become iv. A pattern
Codes:
abcd
(1) iv iii i ii
(2) iv i ii iii
(3) iv iii ii i
(4) iii iv ii i
40. Apple computers use a differentiation competitive strategy that
emphasizes innovative product with creative design. This is an example of
(1) Functional strategy(2) Business strategy
(3) Operating strategy (4) Product strategy
41. Match the items of List – I with the items of List – II and select the code of
correcting matching:
List – I List – II
a. Richard Cantilloni. Entrepreneur must accept the challenge
and should be willing hard to achieve something
b. Joseph A. Schumpeter ii. Entrepreneurs are all those persons who
are engaged in economic activity.

276
c. J.K. Golbraithiii. Entrepreneur is a person who introduces
innovation and change.
Codes:
abc
(1) iii i ii
(2) i iii ii
(3) ii iii i
(4) ii i iii
42. Total Quality Management, job redesigning, new techniques of doing things
and management by consensus are the examples of which one of the following?
(1) Opportunistic entrepreneurship
(2) Administrative entrepreneurship
(3) Incubative entrepreneurship
(4) Mass entrepreneurship
43. Under technology and quality upgradation support to help manufacturing
MSMEs buy energy efficient technologies for production, what percentage of
the actual expenditure is provided as financial support by the Government of
India ?
(1) 75% (2) 60%
(3) 50% (4) 25%
44. Which one of the following is not a personal characteristic of an
entrepreneur?
(1) Innovative (2) Hardworking
(3) Practical (4) Submissive
45. Which one of the following is the most insignificant reason for sickness in
SSI sector?
(1) Power shortage (2) Lack of demand
(3) Management problems (4) Equipment problems

277
46. Statement – I: Ethical principles tend to be broader than legal principles.
Statement – II: Laws and ethics are closely related.
Codes:
(1) Statement – I is correct but Statement – II is incorrect.
(2) Statement – II is correct but Statement – I is incorrect.
(3) Both the Statements are correct.
(4) Both the Statements are incorrect.
47. Assertion (A): The state shall endeavor to protect and improve the
environment and to safeguard the forest and wildlife of the country. Reasoning
(R): The Directive principles of state policy of the Indian Constitution
Command the State to ensure protection and improvement of environment and
to safeguard forest and wildlife.
Codes:
(1) (A) is correct but (R) is not correct.
(2) (R) is correct but (A) is not correct.
(3) Both (A) and (R) are correct and (R) is the right explanation of (A).
(4) Both (A) and (R) are correct but (R) is not the right explanation of (A).
48. Match the items of List – I with List – II and identify the code of correct
matching:
List – IList – II
(CSR Models) (Emphasis)
a. Ethical Model i. corporate responsibilities limited to private owners.
b. Statist Model ii. Voluntary commitment by companies topublic welfare
c. Liberal Model iii. State ownership and legal requirements determine
corporate responsibilities.
d. Stakeholder Model iv. Companies respond to the need of customers,
communities, etc
Codes:

278
abcd
(1) ii iii i iv
(2) ii i iii iv
(3) ii i iv iii
(4) i iii ii iv
49. Which one among the following is not correct about J. J. Irani Committee‟s
recommendations on Company Law (2005) :
(1) 2/5th of the board of a listed company should comprise of independent
directors.
(2) Introduce the concept of One Person Company (OPC).
(3) Allow corporations to self-regulate their affairs.
(4) Disclose proper and accurate compilation of financial information of a
corporation.
50. A business should act ethically for which of the following reasons?
(a) To prevent harm to the general public
(b) To meet stake-holder expectations
(c) To protect their own employees
(d) To maximize profit of the business
Codes:
(1) (a), (b) and (c) only
(2) (b), (c) and (d) only
(3) (a), (c) and (d) only
(4) (a) and (d) only

279
UGC NET PAPER II JULY 2016
1. The following is the demand function: Q = 100 – 5P
What will be the point price elasticity of demand at price Rs10?
(1) 2.00 (2) 1.00
(3) 0.85 (4) 0.50
2. The short-run cost function of a firm is as under:
TC = 200 + 5Q + 2Q2
What will be the level of output at which AC and MC will be equal?
(1) 20 (2) 15
(3) 10 (4) 5
3. Match the items of List – I with the items of List – II and select the code of
correct matching:
List – I List – II
a. Sales Revenue Maximization i. Williamson‟s Model

b. Maximization of a firm‟s growth rate ii. Cyert-March Hypothesis


c. Maximization of Managerial Utility function iii. Baumol‟s Theory
d. Satisficing behavior model iv. Marri‟s Theory
Codes:
abcd
(1) iii iv i ii
(2) i ii iv iii
(3) ii iii i iv
(4) iv iii ii i
4. Assertion (A): The perceived risk of operating a domestic firm in
international environment is much higher.
Reason (R): The international environment is more volatile and the domestic
firm generally does not have full information about the environment.

280
Codes:
(1) Both (A) and (R) are correct.
(2) Both (A) and (R) are incorrect.
(3) (A) is correct while (R) is incorrect.
(4) (A) is incorrect while (R) is correct.
5. Statement – I: The accept-reject approach is adopted generally when a firm
has a large amount of funds to invest in several projects at the same time.
Statement – II: Both the NPV and the IRR methods of investment appraisal
are based on discounted cash flow approach.
(1) Both the statements are correct.
(2) Both the statements are incorrect.
(3) Statement – I is correct while Statement – II is incorrect.
(4) Statement – I is incorrect while Statement – II is correct.
6. Which process is used by a person (perceiver) to deal with conflicting
messages, and conflicting data?
(1) Halo effect (2) The process of checking
(3) Perceptual defense (4) The process of reacting
7. Assertion (A): The physiological needs are essential for living but they are
determined by social environment.
Reasoning (R): These needs may be motivators in backward countries but in a
developed country, these needs are supposed to be satisfied, hence, they may
not be considered motivators.
Codes:
(1) Assertion (A) and Reasoning (R), both are correct, but (R) is not right
explanation of (A).
(2) Assertion (A) and Reasoning (R), both are correct, and (R) is correct
explanation of (A).
(3) Assertion (A) is correct, whereas Reasoning (R) is incorrect.
(4) Reasoning (R) is correct, whereas Assertion (A) is incorrect.

281
8. The basic emphasis of theory of organizational design is on flat
structure, decentralization and provision of informal organization.
(1) Neo-classical theory (2) Modern theory of systems approach
(3) Matrix organization theory (4) Classical theory
9. The result variables as the component of mathematical model for measuring
system‟s effectiveness and efficiency in management science include
(1) Measures of performance (2) Measures of effectiveness
(3) Payoffs and outcomes (4) All the above
10. Assertion (A): Reinforcement plays a central role in the learning process.
Reason (R): Reinforcement strengthens the response preceding it and induces
repetitions of the response.
Codes:
(1) Both (A) and (R) are correct.
(2) (A) is correct and (R) is the right explanation of (A).
(3) (A) is correct but (R) is incorrect.
(4) Both (A) and (R) are incorrect.
11. Most job descriptions contain sections that cover –
(1) Responsibilities and duties (2) Job summary

(3) Working conditions (4) All of the above

12. Match the items of List – I with the items of List – II. The items relate to
evaluation and follow-up of training process.

List – I List – II

a. Results i. Document the learner‟s immediate response to the training.

b. Learning ii. Note supervisor‟s reactions to learner‟s performance


following completion of the training.

c. Reaction iii. Use feedback devices or pre and post tests to measure what
learners have actually gained.

282
d. Behavior iv. Determine the level of improvement in job performance

Codes:

a b c d

(1) iii ii i iv

(2) iv iii i ii

(3) i ii iii iv

(4) iv i iii ii

13. Which one of the following processes allows top management to diagnose
the management styles of supervisors, identify potential, employee problems,
and take corrective action with individual supervisors as necessary?

(1) MBO

(2) Strategic performance appraisal

(3) Organization Development

(4) Upward feedback

14. Statement – I: In competency or skill-based pay, employees are paid for the
range, depth and types of skills and knowledge they are capable of using rather
than for the job they currently hold.

Statement – II: Broad banding results into increase in salary grades and
ranges from 3 or 5 to 10 or more.
Codes:

(1) Only Statement – I is correct.

(2) Only Statement – II is correct.

(3) Both Statements – I and II are correct.

(4) Both Statements – I and II are incorrect.

15. Which one of the following is not a labor law related to wages?

(1) The Workmen‘s Compensation Act, 1923

283
(2) The Payment of Bonus Act, 1965

(3) The Payment of Wages Act, 1936

(4) The Minimum Wages Act, 1948

16.Match the items of List – I with the items of List – II:

List – I List – II
a. Net present value i. Number of years required to recover the original cash
outlay invested in a project.
b. Payback period ii. It is the rate of return which equates the present value of
anticipated net cash flows with the initial outlay.
c. Internal rate of return iii. It is found out by dividing the average after-tax
profit by the average investment.
d. Accounting rate of return iv. It is the difference between the present value of
cash inflows and present value of cash outflows.
Codes:

abcd

(1) iv iii ii i

(2) iii i iv ii

(3) iii iv i ii

(4) iv i ii iii

17. An employee borrowed a 3 year loan of ` 10,000 at 9% from his employer


to buy a motorcycle. If employer requires three equal end-of-year repayments,
then the annual installment will be .

(1) Rs3, 633(2) Rs3, 951

(3) Rs3, 333 (4) Rs4, 233

18. Match the items of List – I with the items of List – II:

List – I List – II

a. M.M. Hypothesiswithouttaxesi. The cost of debt and cost of equity are


assumed tobe independent to the capital structure.
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b. Net operating incomeapproachii. In the absence of taxes a firm‘s market
value andthe cost of capital remain invariant to the capitalstructure changes.

c. M.M. Hypothesis undercorporatetaxesiii. The cost of equity is assumed to


increase linearlywith leverage.

d. Net income approach iv. The value of the firm will increase with debt due
tothe deductibility of interest charges for taxcomputations and the value of the
levered firm willbe higher than the unlevered firm.

Codes:

abcd

(1) ii iii iv i

(2) ii i iv iii

(3) i ii iii iv

(4) iii iv i ii

19.Explicit Resale Price Valuation method pre-supposes that an investor keeps


the share only for few years and eventually sells the shares. The value of the
share, therefore, depends upon which of the following?

(I): The stream of dividends expected during investor‟s ownership.

(II): The price expected to be realized whenever investor sells the share.

Codes:

(1) (I) is true, but (II) is false.

(2) (I) is false, but (II) is true.

(3) Both (I) and (II) are true.

(4) Both (I) and (II) are false.

20. It is an act of acquiring effective control by one company over assets or


management of another company without any combination of companies?

(1) Consolidation (2) Acquisition

(3) Merger (4) None of the above

285
21.Out of the following, identify the key constituents for performance
marketing of Holistic marketing dimensions:
(a) Customers
(b) Brand and Customer equity
(c) Employees
(d) Ethics
(e) Environment
(f) Sales revenue
(g) Financial community
Codes:
(1) (a), (b), (c) and (d) (2) (b), (d), (e) and (f)
(3) (c), (e), (f) and (g) (4) (a), (c), (f) and (g)

22. Which one of the following is a potential drawback of multibranding?

(1) The company‘s resources may be spread over too many brands.
(2) Consumers may become confused about the image of the main brand.
(3) An over-extended brand name might lose its specific meaning for
consumers.
(4) Different product features can appeal to consumers with different buying
motives.
23. When a firm improves the quality and increases the price of a product in
relation to a competitor making a price reduction, the firm is
.
(1) Moving its brand into a higher price-value position
(2) Changing its target market
(3) Moving its brand into a less competitive position
(4) Adversely positioning its product
24. Which one of the following explains “the knowledge and courtesy of
employees and their ability to convey trust and confidence”?
(1) Empathy (2) Responsiveness
(3) Reliability (4) Assurance
25. Match the items of List – I with the items of List – II:
286
List – I List – II
a. Rich-media ads i. online ads that appear between screen
changes on a website, especially while a new screen is loading.
b. Pop-ups ii. Display ads that use eye-catching techniques
such as float, fly, and snapback.
c. Interstitials iii. Ads that users can block through the use of
applications developed by web browser providers.
Codes:
abc
(1) i ii iii
(2) ii i iii
(3) ii iii i
(4) iii i ii

26. Statement – I: Operation research is the application of scientific methods to


the study of alternatives in a problem situation with a view to providing
qualitative basis for arriving at an optimum solution in terms of goal sought.
Statement – II: Operation research is a quantitative commonsense
embracing observation, experiment and reasoning.
Codes:
(1) (I) is correct but (II) is incorrect.
(2) Both (I) and (II) are correct.
(3) Both (I) and (II) are incorrect.
(4) (II) is correct but (I) is incorrect.
27. Match the items of List – I with List – II:
List – I List – II
a. PERT i. Strategies
b. CPM ii. Events
c. Game theory iii. Network

287
Codes:
a b c
(1) i ii iii
(2) ii iii i
(3) iii ii i
(4) iii i ii
28. Statement – I: – X-chart, np-chart and R-chart are the techniques used for
product control under Statistical Quality Control.
Statement – II: Operating characteristic curve helps determine whether a
particular acceptance sampling plan meets both the product‟s and the
consumer‟s risk requirements.
(1) Both the statements are correct.
(2) Both the statements are incorrect.
(3) Statement – I is correct while Statement – II is incorrect.
(4) Statement – I is incorrect while Statement – II correct.
29. Statement – I: When there are a large number of decision variables (more
than three) and constraints, iterative mathematical procedures like simplex
method can be used for product-mix decisions.
Statement – II: Monte Carlo is an approach for simulating the probability distribution
by associating and then selecting random numbers.
(1) Both the statements are correct.
(2) Both the statements are incorrect.
(3) Statement – I is correct while Statement – II is incorrect.
(4) Statement – I is incorrect while Statement – II is correct.
30. In the context of work study, an element is rated as 120% and the actual
readings (in minutes) are as under: 0.05, 0.06, 0.05, 0.05, 0.05, 0.06, 0.06, 0.05,
0.06, 0.06, what is the normal time for the element?
(1) 0.055 minutes (2) 0.060 minutes
(3) 0.066 minutes (4) 0.052 minutes

288
31. Which of the following sentences are true?
(i) The classical approach to probability theory requires that the total number of
possible outcomes be known or calculated and that each of the outcomes be
equally likely.
(ii) A marginal probability is also known as unconditional probability.
(iii) For three independent events, the joint probability of the three events,
P(ABC)= P(A) × P(B/A) × P(C/AB)
(iv) Two events are mutually exclusive, exhaustive and equally likely, the
probability of either event A or B or both occurring P(A or B) = P(A) + P(B)
Codes:
(1) (i), (ii), (iii) and (iv) are true.
(2) (iii) and (iv) are true.
(3) (i), (ii) and (iv) are true.
(4) (i) and (iii) are true.
32. Match the items of List – I with the items of List – II and indicate the code
of correct matching in connection with probability distributions:
List – I List – II
(Mean and Standard Deviations) (Probability Distribution)
d. np, √npq i. Normal Distribution

e. λ,√λ ii. Binomial Distribution

f. 0, 1 iii. Poisson Distribution


Codes:-
a b c
1. i ii iii
2. iii i ii
3. iii ii i
4. i iii ii
33. A researcher wants to test the significance of the differences of the average
performance of more than two sample groups drawn from a

289
normally distributed population, which one of the following hypothesis- testing
tests is appropriate?
(1) Chi-square test (2) F-test
(3) z-test (4) t-test
34. Match the items of List – I with the items of List – II and indicate the code
of their correct matching with regard to correlation and regression analysis:
List – I List – II
a. γxyσy
σxi. Covariance between X and Y
b. Σ(X – –X) (Y – –Y)
n ⋅σx⋅σyii. Standard error of coefficient of correlation
c. Σ(X – –X) (Y – –Y)
n iii. Regression coefficient of Y on X
variable.
d. 1 – γ2
√n iv. Karl Pearson‘s coefficient of correlation
Codes:-
a b c d
1. i ii iii iv
2. ii i iv iii
3. iii ii iv i
4. iii iv i ii
35. Match the items of List – I with List – II:
List – I List – II
a. Stock files that are placed in warehouse as a record i. Daily report
b. Process of managing goods in most sensible way ii. Intranet
c. Management information system iii. Master file
d. Log-in allowed to only internal people iv. Stock control
Codes:-

290
abcd
(1) iii iv i ii
(2) iv iii ii i
(3) iii i iv ii
(4) i ii iii iv
36.The highly competitive industries, particularly in the early stage of product
life cycle, follow which one of the following strategies?
(1) Functional area support strategy (2) Expansion strategy
(3) Diversification strategy (4) Downsizing strategy
37. When highly interrelated variables exist or when it is necessary to choose
from several plausible alternatives, which one of the following should the
strategist integrate in decision making?
(1) Analysis of facts (2) Intuition
(3) Competitor‘s strategy (4) Global perspective
38. Assertion (A): In an industrial structure, the acquisition of an existing firm
in the industry might be a better move than starting-up a new venture.
Reasoning (R): There is evidence that internal development might be preferable
to acquisition because of differences between cultures and shared valued.
Codes:
(1) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(2) Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(3) (A) is correct, but (R) is not correct.
(4) (R) is correct, but (A) is not correct.
39. Consider the following statements with reference to Porter‟s five forces
model of competitive analysis:
(a) As rivalry among competing firm intensifies, generally industry profits
decline or in few cases, industry becomes inherently unattractive.

291
(b) Whenever new firms are allowed to enter a particular industry, the intensity
of competitiveness among firms becomes haphazard.
(c) Generally competitive pressures arising from the substitute products
decrease as the relative price of substitute products decline.
(d) Bargaining power of suppliers affects the intensity of competition.
Codes:
(1) Statements (a) and (b) are false, others are true.
(2) Statements (a) and (d) are true, others are false.
(3) Statements (b), (c) and (d) are true, but (a) is false.
(4) All the statements are true.
40. Match the items given in List – I with the items of List – II:
List – I List – II
a. Vision i. General statements of the company‟s intent.
b. Mission ii. Desired future position of the company
c. Goals iii. Operationalizing of mission
d. Objectives iv. Vivid idealized description of a desired outcome
Codes:
abcd
(1) iv i ii iii
(2) i ii iii iv
(3) ii iii i iv
(4) iii iv ii i

41. Statement – I: VED analysis is meant for project maximization.


Statement – II: Network analysis is independent of planning process.
Codes:
(1) (I) is correct but (II) is incorrect.

292
(2) (II) is correct but (I) is incorrect.
(3) Both (I) and (II) are correct.
(4) Both (I) and (II) are incorrect.
42. Match the items of List – I with List – II:
List – I List – II
a. A promotion assistance for development of Khadi i. SRUTI
b. A scheme of fund for registration of traditional industries ii. ISEC
c. Interest subsidy eligibility for all institutions registered
under KVIC iii. MDA
Codes:-
a b c
1. iii i ii
2. iii ii i
3. i iii ii
4. i ii iii
43. Under the Sick Industrial Companies (Special Provisions) Act, 1985, the
public sector companies were covered from which year?
(1) February, 1994 (2) January, 1990
(3) December, 1991 (4) None of the above
44. Industrial Reconstruction Bank of India (IRBI) which was reconstituted
into a full-fledged all-purpose developmental financial institution with effect
from March 27, 1997 was renamed as .
(1) Small Industrial Development Bank of India
(2) Industrial Investment Bank of India Ltd.
(3) Industrial Finance Corporation of India
(4) Board of Industrial and Financial Reconstruction
45. Non-availability of required project planning capability is due to
.

293
(1) Poor general management
(2) Poor professional management
(3) Poor entrepreneurial management
(4) Poor marketing management
46. Statement – (I): Ethical decision making is a very tough prospect in this
„dog-eat-dog‟ world. All will have to fall in and play fair.

Statement – (II): In this age of liberalization and globalization, the old dirty
games and ethical conduct will no longer be accepted.

Codes:

(1) Statement (I) and (II) both are incorrect.

(2) Statement (I) and (II) both are correct.

(3) Statement (I) correct, (II) incorrect.

(4) Statement (I) incorrect, (II) correct.

47. The three basic principles of business ethics are shown by which one of the
following?

(1) Utilitarianism, social commitment and reputation

(2) Utilitarianism, societal reputation and justice

(3) Utilitarianism, principle of right and principle of justice.

(4) Principle of right, principle of justice and social commitment

48. Gandhian concept of social responsibility is denoted by which one of the


following?

(1) Social commitment concept

(2) Trusteeship concept

(3) Sustainable development concept

(4) Welfare concept

294
49. CII Committee on Corporate Governance with SEBI as the Custodian of
investors constituted on 7th May 1999 is known by which one of the following?

(1) Dr. J.J. Irani Committee

(2) Kumar Mangalam Birla Committee

(3) Narayan Murti Committee

(4) Working group on the Companies Act

50. Which one of the following denotes good choices of ethical decision
making?

(1) (i) take choice seriously

(ii) Good decisions are both ethical and effective

(iii) Discernment and discipline

(2) (i) ethical actions

(ii) Discernment and discipline

(iii) Stage of social welfare

(3) (i) take choice seriously

(ii) Improve ethical decision

(iii) Discernment and discipline

(4) (i) good decision are both ethical and effective

(ii) Take choice seriously

(iii) Ethical actions

295
UGC NET PAPER II DECEMBER 2015
1. Which one of the following assumptions is not related to consumer behavior
based on the cardinal utility approach?
1. Rationality
2. Diminishing marginal utility of money
3. Utility cardinally measurable
4. Maximization of satisfaction with limited money income
2. Statement 1:- A rectangular hyperbola shaped demand curve has uniform
slopes on all its points.
Statement 2:- If the price elasticity is equal to utility, the marginal revenue
corresponds on all its points.
Code:-
1. Both the statements are correct.
2. Both the statements are incorrect.
3. Statement 1 is correct while Statement 2 is incorrect
4. Statement 1 is incorrect while Statement 2 is correct
3. Match the items of List I with the items of List II and find the correct combination: -
List I List II
(Market Structure) (Nature of Industry prevalent)
(a) Perfect Competition (i) Aluminum and passenger cars
(b) Oligopoly (ii) Public Utilities like Telephone and
Electricity
(c) Monopoly (iii) manufacturing: T.V. Sets, Refrigerators
(d) Monopolistic Competition (iv) Farm Products: Grains
Code:-
1. (i) (ii) (iii) (iv)
2. (iv) (i) (ii) (iii)

296
3. (iii) (iv) (i) (ii)
4. (ii) (iii) (iv) (i)
4. Statement 1:- In general, the NPV and IRR methods lead to the same acceptance or
rejection decision when a single project is involved.
Statement 2: - The inconsistency in ranking of competing projects as per the
NPV and IRR methods lies in the implicit assumptions with regard to different
rates of returns on reinvestment of intermediate cash flows.
Code:-
1. Both the statements are correct.
2. Both the statements are incorrect.
3. Statement 1 is correct while Statement 2 is incorrect
4. Statement 1 is incorrect while Statement 2 is correct
5. Which one of the following is not covered in macro-economic?
(1) Performance of the entire economy
(2) Price and output determination of a commodity
(3) Factors and forces of economic fluctuations
(4) Monetary and fiscal policies
6. Match the below mentioned aspects with their main behavioral
disciplines:
AspectsBehavioral discipline
(a) Leadership and stress management (i) Psychology
(b) Group conflict management (ii) Anthropology
(c) Cross-cultural analysis (iii) Sociology and Psychology
(d) Power (iv) Political science
Codes:
a bcd
1. iv i ii iii
2. ii iii i iv
3. i iv ii iii

297
4. iv ii iii i
7.
Theoperantconditioningorlearningapproachtobehaviorisbasedon
_.

298
(1) Lawofreinforcement(3)Lawofreproduction
(2) Law of effect (4) Law of expectations

8. The principles by which the process of perceptual organization works was


first identified by Max Wertheimer in the year .
(1) 1918 (2) 1933 (3) 1924 (4) 1923
9. The leadership theory of describes that effective
group performance depends on the proper match between the leaders‟ style
if interacting with his subordinates and the degree to which the situation gives
control and influence to the leader.
(1) Iowa State Leadership Studies‘; Ronald Lippitt and Ralph K. White
(2) Managerial Grid‘; Blake and Mouton
(3) Trait Theory‘; Stodgill and Barnard
(4) Contingency Model‘; Fred Fiedler
10. When one individual or group wins at the expense of another individual or
group, it is termed as .
(1) Zero-sum conflict (3) Line-staff conflict
(2) Non-zero sum conflict (4) Formal-informal conflict
11. Which one of the following statements is not true in the case of Human
Resource Management?

(1) It performs developmental function (2) Employees are motivated by salary

(3) It is proactive in nature (4) It consists of various sub-


systems

12. Match the items given in the ListI and ListII and choose the correct
option:-

ListIListII

a. Personnel replacement chart (i) A chart prepared for each position


in a company to show possible replacement candidates and their
qualifications
b. Job posting (ii) The ongoing process of
systematically identifying, assessing and developing organizational
leadership to enhance performance
299
c. Succession planning (iii) Company records showing
present performance and promotability of inside candidates for the
most important positions
d. Position replacement card(iv)Publicizing an open job to employees and
listing its attributes, like qualifications, supervisor, working schedule, etc.

Codes:-

(a)(b) (c) (d)

a. (ii) (i) (iii) (iv)


b. (iii) (i) (iv) (ii)
c. (iv) (ii) (i) (iii)
d. (iii) (iv) (i) (ii)

13. Which one of the following training methods is not a managerial „on- the-
job training method?
(1) Coaching (3) Job Rotation

(2) Action Learning (4) Management Games

14. to deal with employee indiscipline provides the offender


every opportunity to state his side of the case.

(1) Punitive approach (3) Humanistic approach

(2) HRD approach (4) Judicial approach

15. Which one of the following is a disadvantage of Critical Incident


Method as a tool of performance appraisal?

(1) Difficult to rate or rank employees relative to one another

(2) Time - consuming

(3) Can cause disagreements among employees and may be unfair if all
employees are, in fact, excellent

(4) Employee‘s appraisal results depend on employer‘s choice of cut-off points

16.If raw materials are in store for 2 months, processing time 2½ months,
finished goods remain in store for 15 days, debtors are allowed 60 days‟

300
credit and credit received from suppliers of raw material is one month, the operating
cycle period is:

(1) 7 months (2) 6 months (3) 6½ months (4) 5 months

17. Which of the following is not general disclosure requirement under


accounting standard-14?

(1) Name and nature of Business

(2) Description and number of shares issued

(3) Accounting method followed

(4)Particulars of scheme sanctioned

18. Under the Modified Accelerated Cost Recovery System (MACRS) an asset
in the “5 year property class” would typically be depreciated over how many
years?

(1) 4 years (2) 5 years (3) 6 years (4) 7 years

19. According to the concept of financial signaling, management behavior


results in new debt issues being regarded as “ news” by
investors.

(1) Non-Event (2) Bad (3) Risk Neutral(4) Good

20. The Exchange of interest and/or principal payment between two parties is
called:

(1) Swap (2) In the money (3) Forward (4) Put option

21. From the following set of information, which combination is correct to


define the process of perception in order to understand consumer behavior?
(a) Selective Attention (c) Selective Retention
(b) Selective Distortion (d) Selective Apprehension
Code:
(1) Only (a) and (d) are correct (3) Only (b), (c) and (d) are correct
(2)Only (a), (b) and (d) are correct (4) only (a), (b) and (c) are correct

301
22. When the company‟s Salesperson contacts the customer from time to time
with Suggestions about improved uses of the product or additional new
range of products, then it is called as:
(1) Proactive Marketing (3) Reactive Marketing
(2) Accountable Marketing(4) Relationship Marketing

23. A state of demand where major part of the market dislikes the product and
may even pay a price to avoid it, may be called as:
(1) Declining Demand (3) Negative Demand
(2) Overfull Demand (4) Distractive Demand

24. When the Companies pay less attention to its own costs or demands and
bases its price largely on competitors‟ prices, then it is known as:
(1) Value pricing (3) Image pricing
(2) Going rate pricing (4) Psychological pricing

25. from the given columns which of the combinations best describe the
concepts of product hierarchy?
(a) Need family
(b) Product family
(c) Product class
(d) Product line
(i) The core need that underlines the existence of a product family
(ii) Group of items within a product line that share one of several possible
forms of the product
(iii) Group of products within the product family recognized as having a
certain functional coherence
(iv) All the product classes that can satisfy a core need with reasonable
effectiveness
Code:
(1) Only (a) - (i), (b) - (iv) and (c) - (iii) are correct
(2) Only (a) - (i), (b) - (iii) and (c) - (iv) are correct
(3) Only (b) - (iv), (c) - (iii) and (d) - (ii) are correct
(4) (a) - (i), (b) - (iii), (c) - (ii) and (d) - (iv) are correct

26. An input (such as variable cost per unit or fixed cost) for a model is an
example of a(n) ?
(1) Stochastic variable (3) Algorithm
302
(2) Decision variable (4) Parameter
27. Match the items of List I and List II and indicate the correct code: List
I List II
Operations Management Functions Activities
(a) Capacity planning (i) Setting policy guidelines and
procedural details of making a watch
(b) Quality Management (ii) the steering of the cars loaded in trucks
reaches the assembly line every morning and evening
(c) Process Design (iii) Establishing rules and policies of which tablets
are to be accepted and others not to be
(d) Location and Layout of (iv) A hospital can largely serve 500
patients at any time facilities
Code:
(a) (b) (c) (d)
(1) (iv) (iii) (i) (ii)
(2) (iv) (i) (iii) (ii)
(3) (ii) (iii) (i) (iv)
(4) (ii) (i) (iii) (iv)
28. Car enters the drive-through of a fast food restaurant to place an order, and
then it proceeds to pay for the food, and pick up the order. This is an example
of:
(1) A multiphase system (2) a multichannel system
(3) Amultiguaue system (4) a multiphase and multichannel system
29. A manufacturer is considering five alternative locations for setting up its
factory. Using the information given in the table obtain a ranking and tell the
best location for setting the factory?
Table:
Factors Relativ Locatio Locatio Locatio Locatio Locatio
e n 1 n n n n
Weight 2 3 4 5
Availability 0.28 20 40 55 35 60

303
of
Infrastructur
e
Size of 0.18 30 30 80 60 40
Market
Industrial 0.15 80 30 50 60 50
Relation
Tax Benefits 0.09 80 20 20 20 10
Availability 0.09 70 70 50 50 45
of cheap
Labor
Nearness to 0.20 20 40 60 50 90
port

Code:
(1) Location 2 (3) Location 4
(2) Location 3 (4) Location 1 and Location 5
30. If the project completion time is normally distributed and the due date for
the project is greater than the expected completion time, then the probability
that the project will be finished by the due date is:
(1) Undeterminable without more information
(2) less than 0.50
(3) Equal to 0.50
(4) Greater than 0.50
31.Match the items of List – I with those of List – II and choose the correct
code:
List – I
(a) The probability of two events occurring together or in succession
(b) The probability of occurring one event given that another event has
occurred
(c) The probability of occurring a single event
(d) The probability revised in the light of additional information
List – II

304
i. Marginal probability
ii.Posterior probability
iii. Subjective probability
iv. Joint probability
v. Conditional probability
Code:-
A b c d
1. iv v i iii
2. v iv ii iii
3. v iv iii i
4. iv v i ii
32. Consider the following statements relating to correlation and regression
analysis:
Statement I: Correlation is independent of change of scale, but not of origin
Statement II: Correlation denotes co-variability between the variables
Statement III: Regression is a relative measure of relationship between variables
Statement IV: Regression is independent of change of origin but not of scale
Choose the correct option:
(1) Statements I, II and IV are correct
(2) Statements II, III and IV are correct
(3) Statements II and III are correct
(4) Statements II and IV are correct
33. Which of the following is not a technology driver for an information
system?
(1) Knowledge asset management (2) Enterprise applications
(3) Object technologies (4) Networks and internet
34. NegandhiEstafen‟ is recognized as a good model for the analysis of:
(1) Organizational effectiveness

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(2) Management effectiveness
(3) Organizational growth
(4) Organization behavior
35. A self-contained internet program designed to be used in a specific
environment is:
(1) Active – X (3) Applet
(2) Application programme interface (4) Artificial intelligence
36.A company manages multiple strategies for it‟s multiple markets and multiple
products through which one of the following?
(1) Strategic Planners (3) Strategic Windows
(2) Strategic Business Units (4) Strategic Technology
37. Match the items of List – I with List – II:
List – I List – II
(a) Technical Innovation Strategy (i) foreign producer gives a straight copy

(b) Product Adaptation Strategy(ii) Perceived and demonstrable superior


products
(c) Availability and Security Strategy(iii) Modifications to existing products

(d) Total Adaptation and Conformity Strategy(iv) Overcome transport risk by


countering perceived risks
Code:
a b c d
1. iii ii i iv
2. ii iii iv i
3. i ii iii iv
4. ii iii i iv
38. Only diversified company with a balanced portfolio can use its strengths to
truly capitalize on its growth opportunities. Hence the balanced portfolio
contains:
(1) Stars whose high share and high growth assure the future
(2) Cash cows that supply funds for their future growth

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(3) Question marks to be converted into stars with the added funds
(4) All of the above
39. Porter‟s Generic Strategies identified three basic categories of strategies
to include which one of the following combinations?
(1) High Cost Producer, differentiation and cost control
(2) Low Cost Producer, differentiation and focused Niche
(3) Specific strategic issues, vertical integration strategies and supply
strategy
(4) Managerial resources, profitability and focused Niche
40. The stages of corporate development provide a way for the strategic
manager to analyze:
(1) Personal objectives, entrepreneurial skill
(2) Managerial abilities, opportunity and threats
(3) Frequently encountered version, functional management
(4) Competitiveness, aggressiveness
41. Which of the following are included as external factors affecting industrial
sickness?
(a) Changes in fiscal and monetary policies
(b) Price and distribution
(c) Non-availability of inputs
(d) Industrial relations
(e) Capital market fluctuations
Code:
(1) (a), (b), (c) and (d) (3) Only (a), (b) and (c)
(2) (b), (c), (d) and (e) (4) (a), (b), (c), (d) and (e)
42. Statement (I): - “Motivation is a continuous, complex and dynamic
process”.
Statement (II):- “As compared to other industries, extra motivation is required
in service sector industries”.

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(1) Statement (I) is correct but Statement (II) is incorrect.
(2) Statement (II) is correct but Statement (I) is incorrect.
(3) Both the Statements (I) and (II) are correct.
(4) Both the Statements (I) and (II) are incorrect.
43. Assertion (A):- The function of entrepreneurs is to reform or revolutionize
the pattern of production by exploiting an invention or, more generally, an
untried technological possibility for producing a new commodity or producing
an old one in a new way.
Reasoning (R): - Lack of innovations will usually reduce the life span of a
product and/or service.
Code:
(1) Assertion (A) and Reasoning (R), both, are correct, and (R) is correct
explanation of (A).
(2) Assertion (A) and Reasoning (R), both, are correct, but (R) is not right
explanation of (A).
(3) Assertion (A) is correct, whereas Reasoning (R) is incorrect.
(4) Reasoning (R) is correct, whereas Assertion (A) is incorrect.
44. A business idea becomes a good business opportunity when it covers which
four of the following?
(a) Attractiveness (b) Foreign Collaborations
(c) Political Support (d) Timeliness
(e) Durability (f) Value addition to end user
Code:
(1) (a), (b), (d) and (e) (3) (a), (d), (e) and (f)
(2) (a), (b), (e) and (f) (4) (b), (c), (e) and (f)
45. Which of the following are correct for an entrepreneur?
(a) Is an independent person
(b) Makes his/her own decisions
(c) has the opportunity of realizing dreams

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(d) Has good financial strength
(e) Has undergone a systematic business training
(f) Has immense job satisfaction
Code:
(1) (a), (b), (c) and (d)
(2) (a), (b), (c) and (e)
(3) (a), (b), (c) and (f)
(4) (a), (b), (d) and (f)
46. Assertion (A): Social audit has been defined as a commitment to systematic
assessment of and reporting in some meaningful, definable domain of the
company‟s activities that have social impacts.

Reasons (R): The Companies Act 2013 has accorded statutory recognition of
the social responsibility of a corporate entity and gives option to provide a
percentage of profit for the purpose as per discretion of the board.

Code:

(1) Both (A) and (R) are correct, and (R) is the right explanation of (A).

(2) Both (A) and (R) are correct, but (R) is not the right explanation of (A).

(3) (A) is correct but (R) is not correct.

(4) (R) is correct but (A) is not correct.


47. Which one of the following of „Immanuel Kant‟s‟ Principle, known as
categorical imperatives, is a guide to managerial action?

(1) The managers should be open to share his/her corporate secrets, individual
traits with external agencies.

(2) The managers be free and open to share his individual knowledge and
experience for community‘s gain.

(3) A person‘s action is ethical only if that person is willing for that same action
to be taken by everyone who is in a similar situation.

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(4) A person always treats another human being simply as a means to an end.

48. Teleology in ethics supports which one of the following the most?

(1) It is duty-based ethics and measures whether an action is right or wrong.

(2) It measures whether the results of the actions are right or wrong.

(3) It focuses on purpose of each action and judges the consequences of an


action.

(4) It focuses on neutrality and fidelity of an action.

49. Assertion (A): Deontology is duty-based ethics. It is an approach to ethics


that addresses whether the motives behind certain action are right or wrong.

Reason (R):Deontology focuses on whether the results of the actions are right
or wrong.

Code:

(1) Both (A) and (R) are correct

(2) (A) is correct and (R) is the right explanation of (A)

(3) (A) is correct but (R) is not the right explanation of (A)

(4) Both (A) and (R) are incorrect

50. Assertion (A) : Rules notified by the Ministry of Corporate Affairs (MCA)
Sec. 149 of the Companies Act mandates that a listed company having a paid up
share capital of Rs100 crore or more shall appoint at least one woman director
on its board.

Reasons (R):The corporate entities wanted to enhance gender equality and


woman empowerment in corporate governance and company administration.

Code:

(1) Both (A) and (R) are correct.

(2) (A) is correct and (R) is the right explanation of (A).

(3) (A) is correct but (R) is not the right explanation of (A).

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(4) Both (A) and (R) are incorrect.

311
UGC NET PAPER II JUNE 2015
1. If the demand for using the Noida express way is given by:
Q= 40,000-2500P
Where Q is the number of users (vehicles) and P is the amount of toll collected
per unit who uses the express way. In light of this information which of the
following is true:
(1) At P=Rs 6 and Q=14,000; demand is price inelastic.
(2) At P=Rs7 and Q=16,500; demand is unitary elastic.
(3) At P=Rs4 and Q=9,500, demand is price elastic.
(4) All of the above
2. If a 100% scale-efficient plant has 92% technical efficiency and 88.5%
allocative-efficiency, then its overall efficiency will be:
(1) 88.5% (2) 90.25% (3) 93.0% (4) 81.42%
3. The market share data for an industry, comprising five companies, is given
below:
Company Market Share(%)
A 35
B 25
C 18
D 12
E 10
This industry‘s three-firm Herfindahl-Hirschman index shall be:
(1) 0.234 (2) 0.217 (3) 0.151 (4) 0.0175
4. For economy which consists of single automobile maker and that in year
2014, 30,000 vehicles are produced with an average price of ` 5 lakh. For this
economy what would be the increase in the nominal GDP for 2015 compared
with 2014 with the 4% greater automobile production and 8% inflation.
(1) 4.0% (2) 12.0% (3) 6.0% (4) 12.32%

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5. Demand policies targeted to reduce the unemployment become
ineffective in presence of the following:
(1) Vertical Phillips curve
(2) Money illusion and ignorance among workers
(3) Horizontal Phillips curve

(4) None of the above

6. An individual‟s involvement with, satisfaction and enthusiasm for, the


work he does, is known as:
(1) Employee engagement (3) Job satisfaction
(2) Job involvement (4) Organizational commitment
7. Which of the following is not perceived as the basic element of motivation?
(1) Direction (2) Intensity (3) Performance (4) Persistence
8. A theory of motivation that is concerned with the beneficial effects of
intrinsic motivation and the harmful effects of extrinsic motivation is termed as:
(1) Cognitive Evaluation Theory (3) Self-determination Theory
(2) Self-efficiency Theory (4) Two-factor Theory
9. Match the items of List I with those of List II.
List I List II
Behavioral science Contribution
(a) Anthropology (i) Attitude change
(b) Psychology (ii) Attitude measurement
(c) Social psychology (iii) Conflict
(d) Sociology (iv) Organizational culture

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Codes:
(a) (b) (c) (d)

(1) (i) (ii) (iii) (iv


(2) (iv) (ii) (i) (iii)
(3) (iv) (ii) (iii) (i)
(4) (ii) (iv) (iii) (i)

10. A relatively stable set of characteristics that influence an individual‟s


behavior is known as:
(1) Attitude (2) Learning (3) Perception (4) Personality

11. Assertion (A): The more differentiated the HR environment, the more
uncertain it shall be:

Reason (R): Organizations are dependent in an environment where human


resources are not widely available.

(1) Both (A) and (R) are correct

(2) (A) is correct and (R) is the right explanation of (A)

(3) (A) is correct but (R) is not the right explanation of (A)

(4) Both (A) and (R) are incorrect

12. Which one of the following is a type of interview where a series of job-
related questions are asked that focus on how the candidate would behave in a
given situation?

(1) Behavioral interview (3) Situational interview

(2) Job-related interview (4) Structured interview

13. Consider the following statements:

(a) Sensitivity training was developed by Kurt Lewin

(b) In-basket exercise is a simulated training method

(c) Depth interview is also known as Directive Interview

(d) Job evaluation is carried out for promoting job satisfaction

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Which of the above statements are true?

(1) Only (a) and (c) (3) (a), (b) and (c)

(2) Only (a) and (b) (4) (b), (c) and (d)

14. Behaviorally Anchored Rating Scale (BARS) consists of the following


steps:

(a) Reallocate incidents

(b) Develop performance dimensions

(c) Generate critical incidents

(d) Develop final statements

The correct chronological order of these steps is:

(1) (a), (b), (c), (d) (3) (c), (b), (a), (d)

(2) (b), (c), (a), (d) (4) (a), (c), (b), (d)

15. Consider the following elements:

(a) Actors (b) Inputs (c) Context (d) Output (e) Ideology

Which of these are not the elements of John Dunlop‟s Framework ofIndustrial
Relatives System?

(1) (a) and (b) (2) (a) and (e) (3) (b) and (d) (4) (a) and (d)

16. State the price of the share for the year t, if the rate of growth of the firm is
10%, EPS and DPS for the year t11, are ` 3 and ` 2 respectively and the
investors‟ required rate of return is 20%.

(1) Rs30 (2) Rs20 (3) Rs25 (4) Rs10

17. In which of the following appraisal criteria of capital budgeting, the use of
varying opportunity cost of capital as a discount factor is possible?

(a) NPV (b) IRR (c) Pay-back Period (d) ARR

(1) Only (a) is correct. (3) (b) and (d) both are correct.

(2) (a) and (b) both are correct. (4) Only (c) is correct.

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18. According to the CAPM model, the cost of equity is represented by:

(1) Rm1 (Rm2Rf) bj (3) bj1(Rm2Rf)Rm

(2) Rf1(Rm2Rf)bj (4) Rm1Rf1bj

Where R indicates market rate of return, R indicates risk free rate of return and
b indicates beta of stock j

19. Anticipated annual dividend divided by the market price of the stock is
referred as:

(1) Dividend Pay-out (3) Return on Equity

(2) Dividend yield (4) Regular dividend

20. If the existing shareholder does not exercise his/her right or does not sell
the right entitlement:

(1) his/her wealth will remain unaffected

(2) his/her wealth will increase

(3) his/her wealth will decrease

(4) his/her wealth may increase or decrease

21. What are the four main components of holistic marketing?


(1) Integrated Marketing, Internal Marketing, Product Positioning and
Performance Marketing
(2) Integrated Marketing, Relationship Marketing, Social Marketing and
Performance Marketing
(3) Relationship Marketing, Integrated Marketing, Internal Marketing and
Performance Marketing
(4) Relationship Marketing, Integrated Marketing, Internal Marketing and
Social Marketing

22. Which of the following category of goods and services is most likely to
require an aggressive use of the selling concept?
(1) Complementary Goods (3) Specialty Goods
(2) Luxury Goods (4) Unsought Goods
23. The type of marketing that is the most recent to emerge is:
(1) Person marketing (3) Services marketing

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(2) Product marketing (4) Social marketing
24. According to the theory, marketers can enhance demand
for a product by associating it with strong drives, using motivating cues and
providing positive re-enforcement.
(1) Demand theory (3) Psychological theory
(2) Learning theory (4) Two-factors theory

25. The most scientifically valid research is:


(1) Experimental Research (3) Focus-Group Research
(2) Observation Research (4) Survey Research

26. Which of the following statements is not correct?

(1) Product Layout generally has continuous and Mass Production, mainly
assembly function.
(2) Process Layout generally has Intermittent, Job-Shop, Batch Production,
mainly fabrication function.
(3) Product Layout usually has general purpose equipments.
(4) Process Layout is generally driven by fluctuating demand.

27. Six-SIGMA quality indicates:


(1) 2.4 defects per thousand (3) 3.4 defects per thousand
(2) 2.7 defects per thousand (4) 3.7 defects per thousand
28. A manufacturing firm has four work stations, A, B, C and D in series with
individual capacity of processing 450, 390, 360 and 400 units per day
respectively and the actual output of the firm is 306 units per day. The system
capacity and system efficiency of the firm shall respectively be:
(1) 400 and 100% (2) 450 and 120%
(3) 360 and 85% (4) 390 and 95%
29. In the simplex method of solving an LP Problem, the product-mix column
of the initial solution contains:
(1) Artificial variables only (3) Slack and artificial variables only
(2) Slack variables only (4) Real variables only
30. If the optimal solution of an LP Problem is degenerate then:

317
(1) The problem has multiple optimal solutions
(2) The solution is not feasible
(3) The solution is useless to the manager
(4) None of the above
31. If your score in an exam was 80, with a mean of 60, what would be the
standardized score for this exam if the standard deviation is 15?
(1) 1.33
(2) 1.25
(3) 1.52
(4) 1.72
32. Spurious relationship between two variables refers to:
(1) Very poor relationship between the variables.
(2) Statistically insignificant relationship between the variables.
(3) Relationship happens only due to third variable which is common to both
the variables.
(4) The relationship which is impossible to measure.
33. In a medical test, where the null hypothesis is: „The patient does not have
the disease‟ and the alternative hypothesis is: „ the patient has the disease‟.
Suppose a patient has a disease and needs treatment. In the hypothesis testing
process, which of the following errors is more serious than the others?
(1) Type - I error (3) Both Type - I and Type - II error
(2) Type - II error (4)r - error
34. Decision support system does not use:
(1) Analytical models
(2) Specialized databases
(3) File server
(4) Computer - based modeling process
35. Give the correct order of the stages in System Development.

318
(1) Testing---->Programming---->Systems----->Design---->Systems---->
Analysis---->Conversion---->Production and Maintenance
(2) Programming---->Testing---->Systems Analysis---->Systems Design ----
>Conversion ---->Maintenance
(3) Systems Analysis---->Systems Design---->Programming---->Testing ----
>Conversion---->Production and Maintenance
(4) ProductionandMaintenance---->Testing---->Conversion-----
>Programming ---->Systems Design---->Systems Analysis
36. Which of the following statements is correct?
(1) Balanced score cards always report using the same time periods as the
financial accounting system.
(2) One fundamental idea of balanced score card is to increase the number of
performance indicators used to manage the business.
(3) Organizations sometimes use a ―traffic light‖ system on their balanced score
card to help them priorities their activities.
(4) The fundamental idea of balanced score cards is to create corporate strategy.
37. What metaphor is used to describe the competitive space where product are
not yet well defined, competitors are not well-organized and the market is
relatively unknown?
(1) Blue Lagoon
(2) Blue Ocean
(3) Red Sea
(4) Red Ocean
38. Michael E. Porter‟s five generic strategies are :
(1) Differentiation (Best Value). Differentiation (Low Cost), Cost Leadership
(Large), Cost Leadership (Small), Focus
(2) Focus (Large), Focus (Small), Cost Leadership (Small), Cost Leadership
(Large), Differentiation
(3) Cost Leadership (Low Cost), Cost Leadership (Best Value),
Differentiation, Focus (Low Cost), Focus (Best Value)
(4) Cost Leadership (Large), Cost Leadership (Small), Differentiation
(Large), Differentiation (Small), Focus
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39. One of the strategic decisions relating to the value chain concerns vertical
integration. This would involve:
(1) Deciding to link all activities using Enterprise Resource Planning.
(2) Deciding whether the activity should be performed within the organization
or by a different firm.
(3) Deciding whether to locate operation in the home country or in a foreign
location.
(4) Deciding whether to share certain activities across different products and
markets.
40. “Pepsi Co launched a hostile takeover of Pepsi Bottling Group after its
$ 4.2 billion offer was rejected”. Which strategy was used in this case?
(1) Market Penetration (3) Horizontal Integration
(2) Backward Integration (4) Forward Integration
41. Who viewed entrepreneur as a non-fixed income earner with known costs
of production but uncertain income and therefore, operating at a risk?
(1) Adam Smith(2) Richard Contillon
(3) Jean-Baptiste Say (4) Francis Wolker
42. Which one of the following is not a major area of entrepreneurial
innovation as suggested by Joseph Schumpeter?
(1) Product innovation(3) Market innovation
(2) Process innovation (4) Structural innovation
43. Which one of the following types of entrepreneurs are not proactive in
nature and does not respond much to changes in the environment?
(1) Fabian entrepreneur (3) Drone entrepreneur
(2) Adoptive entrepreneur (4) Innovative entrepreneur
44. SFURTI (Scheme of fund for regeneration of traditional industries) is
implemented by:
(1) Union Ministry of Traditional Industries
(2) National Agricultural cooperative Marketing Federation

320
(3) Federation of Indian Chamber of Commerce and Industry
(4) Union Ministry of Micro, Small and Medium Enterprises
45. According to the Tiwari Committee report, which one of the following is
not an internal cause of industrial sickness in India?
(1) Lack of manpower planning (3) Excessive expenditure
(2) Lack of control systems (4) Excessive tax policies
46. Which of the following is/are the component(s) of Ethics by field of
interest?

(1) Descriptive ethics (3) Meta ethics

(2) Normative ethics (4) All of the above

47. What is the right sequence of four psychological sub-processes in ethical


action given by James Rest?

(1) Moral sensitivity, moral focus, moral judgment, moral character

(2) Moral focus, moral character, moral sensitivity, moral judgment

(3) Moral sensitivity, moral judgment, moral focus, moral character

(4) Moral character, moral focus, moral judgment, moral sensitivity

48. A new approach Learning Model” which is helpful to strengthen the


decision making process was developed by:

(1) Arthur Rich

(2) Bob Garratt

(3) Christian Wolff

(4) Lord Keynes

49. Assertion (A): Corporate behavior towards stakeholders is an


important concept in practice and a central part of corporate Governance.

Reason (R): It has to be ethical, legal and responsible behavior for organization,
stakeholders and society.
(1) Both (A) and (R) are true.

321
(2) Both (A) and (R) are false.

(3) (A) is false, but (R) is true.

(4) (A) is true, but (R) is not a correct explanation of (A).

50. CSR is important because:

(1) It influences all aspects of Company‘s operation

(2) It gives company‘s mission and strategy

(3) It increases the general affluence and societal expectation

(4) All of the above

322
UGC NET PAPER II DECEMBER 2014
1. In the market-oriented system, for the allocation of resources which one of
the following is the most appropriate conveyor of information?
(A) Finance Ministry (B) Central Bank
(C) Market Price (D) Advertisement Expenditure
2. A company supplies 20 units of a particular product per month, at a price of
Rs 10 per unit. If price elasticity of supply is 5, how many units would the
company supply at a price of Rs15?
(A) 50 (B) 70
(C) 40 (D) 5
3. Which characteristic is not likely to be a part of perfect competition?
(A) Absence of interdependence (B) Deadweight loss is non-existent
(C) Strong rivalry (D) Absence of advertisement
4. Match the items given in List – I and List – II by considering which of the
following are macroeconomic issues and which microeconomic ones are:
List – I List – II
a. The level of government revenue i. Microeconomic
b. The rate of inflation ii. Macroeconomic
c. The price of T.V. set
d. The amount saved last year by households
Codes: -
abcd
(A) ii i iii
(B) ii i ii i
(C) i ii iiii
(D) ii ii i ii

323
5. In the recent years, world economy has witnessed the influence of
unconventional monetary policy of the U.S.A. This policy stance is known as
(A) Bank rate (B) Taylor rule
(C) Reserve requirement (D) Quantitative easing
6. Rita, a young enthusiastic manager has joined an organization as a project
coordinator. The project head counsels her to socialize less with non-
management employees; whereas the product head tells her to learn more about
market issues. She should socialize more with the non- management employees.
Rita is confused, she is facing
(A) Inter-role conflict (B) Intra-role conflict
(C) Interdepartmental conflict (D) Hierarchical conflict
7. List – I consists of Motivation theories and List – II consists of the
Motivation theorists. You have to match them and indicate the correct match as
per code:
List – I List – II
a. Two-factor theory i. David McClelland
b. ERG theory ii. Fredrick Herzberg
c. Theory X and Theory Y iii. Douglas McGregor
d. Need theory iv. Clayton Alderfer
Codes:
abcd
(A) ii iv iii i
(B) i ii iii iv
(C) i iv ii iii
(D) iv iii ii i
8. The conflict over content and goals of the work is called
(A) Functional conflict (B) Process conflict
(C) Relationship conflict (D) Task conflict

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9. theory of motivation ignores the inner state of the individual and
concentrates solely on what happens when he or she takes some action.
(A) Equity (B) Expectancy
(C) Goal-setting (D) Reinforcement
10. In the “Big Five” personality factors widely accepted personality traits are
mentioned. The trait of being dependable, organized, conforming and
persevering on tasks is called
(A) Extroversion (B) Conscientiousness
(C) Agreeableness (D) Emotional stability
11. Given below are four statements. Some of the statements are incorrect. You
have to choose the correct one.
(A) A satisfied employee is a motivated employee.
(B) Employees who are happy ―being around‖ are good contributors to the
organization.
(C) Motivated employees do not need engagement.
(D) Customer loyalty has been found to be positively correlated with employee
engagement.
12. The author of the book „The World is Flat: A Brief History of the Twenty
First Century‟ is
(A) Thomas L. Friedman (B) RaghuramRajan
(C) Michael Armstrong (D) VineetNayyar
13. ESOP stands for and was developed by
(A) Employee Stock Ownership Plans; Wallace Forbes
(B) Employee Stock Ownership Programs; Louis Kelso
(C) Employee Stock Ownership Plans; Louis Kelso
(D) Employee Share Ownership Programs; Louis Kelso
14. Match items given in List – I, with those in List – II:
List – I List – II
a. Predictive analytics to help

325
anticipate the result of HR
strategy i. Job Specification
b. Statement of purpose, scope,
duties, task and
responsibilities of job ii. Ernest J. McCormick
c. Position Analysis
Questionnaire iii. Job Description
d. Statement of qualifications and
qualities required of an
employee to be successful iv. Workforce Analytics
Indicate the correct code:
Codes:
abcd
(A) iv iii ii i
(B) i ii iii iv
(C) i iv ii iii
(D) ii iv i iii
15. Match the items of List – I and List – II:
List – I List – II
a. Procedural Rules i. An interim or final determination of
any industrial dispute
b. Managerial Aspects ii. Terms and conditions of
employment and control on
transfers, promotions etc
c. Substantial Rules iii. Mechanism of dealing with
interpretation and implementation of
agreements
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d. Award iv. Assignment of work and adjustment of
workforce
Indicate the correct code:
Codes:
abcd
(A) iv ii i iii
(B) iii iv ii i
(C) i ii iii iv
(D) ii iii iv i
16. Consider the following two statements:

Statement I:Bond value would decline when the market rate of interest rises.
Statement II: There is a positive relationship between the value of a bond and
the interest rate. Select the correct code:

Codes:

(A) Statement I and Statement II both are correct.

(B) Statement I is correct, but Statement II is incorrect.

(C) Statement II is correct, but Statement I is incorrect.

(D) Statement I and Statement II both are incorrect.

17. Match the following techniques of capital budgeting given in List – I, with
one of the Characteristics given in List – II and select the correct code:
List – I
a. NPV
b. IRR
c. Profitability Index
d. Payback period
List – II

327
i. Under certain circumstances its reciprocal is a good approximation of the rate
of return.
ii. Shareholder‟s wealth maximization
iii. Possibility of multiple outcomes in single calculation
iv. Measure of projects‟ relative profitability
Codes:
a b c d
(A) i ii iii iv
(B) ii iii iv i
(C) iii iv i ii
(D) iv I ii iii
18. In the case of redeemable debentures issued at discount and to be redeemed
at par, approximate cost of debenture (before tax adjustment) will be equal to

(A) Rate of interest

(B) Amount of interest divided by issue price

(C) Amount of interest divided by par value

(D) Amount of interest+ [par value – issue price]


Tenure of debenture
-----------------------------------------------------------------
Par value+ issue price

19. While granting the term loan, if lending institution puts a condition to
reduce the debt equity ratio by issuing additional equity share-capital or
preference share capital, it is known as

(A) asset-related restrictive covenant

(B) Cash flow related restrictive covenant

(C) Control related restrictive covenant

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(D) Liability related restrictive covenant

20. According to Lintner‟s model of corporate dividend behavior, the


dividend for the year„t‟ is dependent on:

I. earnings per share for the year t

II. Dividend per share for the year t-1

III. Adjustment rate

IV. Target pay-out ratio

V. market price of share

Select the correct code:

(A) I, II and III are correct.

(B) II, III, IV and V are correct.

(C) I, II, III and IV are correct.

(D) I, II, IV and V are correct.

21. Which of the following concepts holds that consumers prefer the
products which are easily available and are inexpensive?
(A) The product concept (B) The production concept
(C) The selling concept (D) The marketing concept
22. is the added value endowed to a product or service.
(A) Brand equity (C) Brand loyalty
(B) Brand image (D) Brand preference

23. Match the items/persons included in List – I with the items in List – II and
indicate the correct pairing through codes given below:
List – IList – II
a. CCI i. Consumer buying decision process
b. Cognitive dissonance ii. Marketing Myopia
c. Everett M. Rogers iii. Diffusion of Innovation
d. Theodore Levitt iv. iv. Predatory Pricing

329
Codes:-
a b c d
(A) iv iii ii i
(B) iii iv ii i
(C) i ii iv iii
(D) i iii ii

24. The step after „concept testing‟ in the new product development process is
(A) Business analysis(B) Marketing strategy development
(C) Product development(D) Test marketing

25. When the total market expands, the usually gains the most.
(A) Market challenger
(B) Market leader
(C) Market follower
(D)Market niche

26. „Large output per unit of space‟ is an orientation of which type of plant
layout?
(A) Product layout
(B) Process layout
(C) Fixed-Position layout
(D) Cellular layout

27. Which of the following steps is the first step in production scheduling?
(A) Sequencing
(B) Loading
(C) Expediting
(D) Classifying

28. A defence equipment manufacturing company uses bolts at a constant rate


of 10000 kg per year. The bolt cost ` 80 per kg and the company estimates that it
costs Rs400 to place an order and the carrying cost of inventory is 10 percent
per year. How frequently should orders for bolts be placed?
(A) 5

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(B) 10
(C) 15
(D) 20

29. The number of allocated cells in the optimal solution table of a


transportation problem having m origins and n destinations is
(A) m + n – 1
(B) m + n –1 or more
(C) m + n –1 or less
(D) m + n

30. The co-efficient of artificial variable in a Maximization problem of LP is


(A) M
(B) –M
(C) 0
(D) 1

31. If p = 0.6 for a particular Bernoulli process, the calculation ( 8! ) (0.6)5


(0.4)3 indicates 5!*3!
the probability of happening of
(A) 5 or more successes in eight trials
(B) 3 or more successes in eight trials
(C) Exactly 5 successes in eight trials
(D) Exactly 3 successes in eight trials
32. Chebyshev‟s theorem provides that at least 89% of the values will lie
within ± 3 standard deviations from the mean for
(A) Bell-shaped distributions
(B) Positively-skewed distributions
(C) Negatively-skewed distributions
(D) All distributions
33. How many degrees of freedom should be used to apply chi-square test
statistic on a contingency table, having 5 rows and 4 columns?

331
(A) 20
(B) 12
(C) 7
(D) 9
34. The and its alternative provide the ability to serve dynamic
content to browsers.
(A) Common Gateway Interface
(B) Cryptography
(C) General Pocket Radio Service
(D) Cellular Digital Pocket Data
35. Which is the most suitable domain extension for an Indian NGO to do e
business?
(A) .gov
(B) .com
(C) .org
(D) .us
36. At which level in the company should market-oriented strategic planning
begin?
(A) Corporate level
(B) SBU level
(C) Marketing Department‘s level
(D) Brand Manager‘s level
37. Which of the following statements is not true?
(A) A group of firms following the same strategy in a market is called a
‗strategic group‘.
(B) The members of strategic group are the key competitors.
(C) The type of competition among them is known as generic competition.
(D) The height of entry barriers differ for each group.

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38. In India Proctor & Gamble (P & G) (Home products division) is following
the strategy of
(A) Cost leadership
(B) Differentiation
(C) Broad differentiation
(D) Focused differentiation
39. Today, mobile phones have many features such as camera, GPS,
Internet, music and videorecording. This is an example of
(A) Convertibility of Industries
(B) Combination of Industries
(C) Competition among Industries
(D) Convergence of Industries
40. An organization that is downsizing to reduce cost is implementing a
strategy of
(A) Growth
(B) Focus
(C) Renewal
(D) Stability
41. Who propounded entrepreneurship as a theory of business?
(A) Daniel Goleman
(B) Joseph A. Schumpeter
(C) Thomas A. Coleman
(D) Warren Buffet
42. Who among the following is not the first generation entrepreneur?
(A) DhirubhaiAmbani
(B) Shiv Nadar
(C) K. Anji Reddy
(D) G.D. Birla

333
43. Which of the following is not a possible route to market entry for a small
business owner/entrepreneur?
(A) Franchise
(B) Corporate Venture
(C) Outright Purchase
(D) Buy-out
44. The number of items which can be exclusively manufactured in the small
scale sector are
(A) 20 items
(B) 35 items
(C) 50 items
(D) 62 items
45. Which of the following is an external reason for the sickness of a small
business?
(A) Choice of an idea
(B) Inadequate finance
(C) Volatile business environment
(D) Lack of vertical and horizontal integration
46. In view of competitive global economy, corporations are involved in cost
cutting, corporate restructuring, mergers and acquisitions and downsizing. All
these activities can be carried out successfully only if there is proper

(A) Business Ethics

(B) Ethical Audit

(C) Corporate Social Responsibility

(D) Corporate Governance

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47. Statement (A): Law and moral standards overlap to a certain extent.

Statement (B): Law represents a minimum set of standards for regulating


human behavior in society.

(A) (A) and (B) both are incorrect.

(B) (A) is correct but (B) is not the right explanation of (A).

(C) (A) is correct and (B) is the right explanation of (A).

(D) (A) is incorrect and (B) is a correct statement in isolation.

48. In order to check the growing unethical practices in the field of information
technology, the first cyber law passed in India is

(A) Information Technology Act

(B) Anti-hacking Law

(C) Cyber Law

(D) E-commerce Law

49. Match the items of two lists, indicating the correct code:

List – I List – II

a. Transparency i. All stakeholder groups have the


opportunity to maintain or improve their well-being.

b. Equity ii. The State of being answerable for


decisions and activities to all stakeholders.

c. Sustainability iii. Information freely available and


directly accessible to interested parties.

d. Accountability iv. The effect which action taken in


the present has upon the options available in the future.

Codes:-

abcd

(A) iii i iv ii

(B) i ii iii iv
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(C) ii iii i iv

(D) iii i ii iv

50. Which of the following is not a principle of CSR?

(A) Protecting Environment

(B) Avoiding price discrimination

(C) Promotional activities

(D) Adopting the labor policies

336
UGC NET PAPER II JUNE 2014
1. In case the price (P), quantity (Q), and changes (Δ) are represented by
respective symbols given in the brackets, the price elasticity of demand (Ed) is
measured by
(A) Ed = ΔQ / PΔ
(B) Ed = (QΔ/Q) / (PΔ/P)
(C) Ed = ΔP/ΔQ
(D) Ed = (ΔP/P) / (ΔQ/Q)
2. Law of Diminishing Return applies when the gaps among the successive
„multiple-level of output‟ isoquants
(A) Decreases(B) remains constant
(C) Increases (D) remains irregular
3. In case the demand elasticity under imperfect competition is unity, the
marginal revenue will be
(A) more than utility, but less than infinity.
(B) Equal to unity.
(C) less than unity, but more than zero.
(D) Equal to zero.
4. Rise in general price level along with declining output in the economy is
called
(A) Inflation (B) Deflation
(C) Stagflation (D) Demand-pull inflation
5. National income equilibrium is not at the level where
(A) Aggregate investment equals aggregate savings
(B) Aggregate expenditure equals aggregate income
(C) Inflationary and deflationarygaps are absent
(D) Aggregate consumption is constant

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6. Which of the following is a correct match?
(A) McClelland – ERG Theory
(B) Skinner – Reinforcement Theory
(C) Vroom – Equity Theory
(D) Locke – ExpectancyTheory
7. The study of gestures and body postures for their impact on
communication is known as
(A) Kinesics (B) Proxemics
(C) Semantics(D) None of the above
8. According to Organizational Culture Inventory (OCI), an organization in
which members are encouraged to work together in ways that meet higher order
human needs is classified as having a culture.
(A) Constructive (B) motivational
(C) Passive (D) high achievement
9. A matrix structure of organization
(A) Reinforces unity of command
(B) is inexpensive
(C) is easy to explain to the employees
(D) Gives to some employees more than one boss
10. Organizational development (OD) is a planned change plus
(A) Evaluation
(B) Intervention
(C) Ability for self-renewal
(D) Reinforcement
11. Match the following:
List – IList – II
(Concept) (Term)
a. An ongoing and formalized effort that focuses on

338
developing enriched and more capable workers i. Direction phase
b. A career development activity in which
managers make decisions regarding
the advancementpotentialofsubordinatesii. Careerdevelopment
c. A career development activity that focuses
on preparing people to fill executive positions iii.
Promotabilityforecast
d. Determining the type of career that
employees want and the steps they must take to realise
their career goals iv. Succession planning
Codes:
abcd
(A) i ii iii iv
(B) ii iii iv i
(C) ii iii i iv
(D) i iii ii iv
12. A formal explanation of the knowledge, skills, abilities, traits and other
characteristics necessary for effective job performance is known as
(A) Job Description
(B) Job Analysis
(C) Job Specification
(D) Job Enrichment
13. aims to reduce reliance on arbitrary methods of pay
determination by introducing an element of objectivity in the way jobs are compared.
(A) Performance appraisal
(B) Job evaluation
(C) Job enrichment

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(D) Attrition
14. Match the following:
List – I List – II
a. The process of examining how
work creates or adds value to the
ongoing processesin a business i. Job Enrichment
b. A fundamental rethinking and
radical redesign of business processes
to achieve dramatic improvements in
cost, quality, service and speed ii. Job Design
c. The process of organising work
into the tasks required to perform a specific
task iii. Work flow analysis
d. The process of putting specialized
tasks back together so that one person is
responsible for producing a whole
product or an entire service iv. Business process reengineering
(BPR)
Codes:
abcd
(A) i ii iii iv
(B) ii i iv iii
(C) iii iv i ii
(D) iii iv ii i
15. The process of reorganizing a company‟s employees to improve their
efficiency is termed as
(A) Right sizing

340
(B) Down sizing
(C) Retrenchment
(D) Lay-offs
16. The value of a bond with a given maturity period is

(A) Present value of maturity value of the bond

(B) Present value of annual interest plus present value of maturity value

(C) Total amount of interest plus the maturity value received

(D) Maturity value received

17. The capital budgeting appraisal criterion that is most appropriate in the
situation of capital rationing will be

(A) Payback period

(B) Internal Rate of Return

(C) Net present value

(D) Profitability index

18. For computation of cost of equity, arrange the following measures in the
ascending order of accuracy:

I. Capital Asset Pricing Model

II. Dividend-Price Ratio

III. Earning-Price Ratio

IV. Dividend-Price plus Growth Ratio

Codes:

(A) I ---> III ---> II ---> IV

(B) IV --->I --->III ---> II

(C) III ---> II ---> IV ---> I

(D) II ---> IV ---> I ---> III

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19. Match the items given in the two lists:

List – I List – II

a. Debt securities without any explicit interest rate i. Floating Rate Bonds

b. Company issuing such bonds experiences less financial distress ii. Zero-
coupon bonds

c. Coupon rate quoted as mark-up on the given rate iii. Income Bonds

Codes:

abc

(A) i ii iii

(B) i iii ii

(C) ii iii i

(D) iii Iii

20. Which one of the following types of working capital is financial through a
portion of long-term funds?

(A) Gross working capital

(B) Net working capital

(C) Floating working capital

(D) Regular working capital

21. In the model of consumer adoption of new products developed by


Everitt M. Rogers, the first category of people to adopt a new product is
called:-
(A) Early Adopters
(B) Initial Adopters
(C) First users
(D) Innovators

22. PepsiCo used to enter the Indian market in the early 1980s.
(A) Mega marketing (B) Meta marketing
(C) Micro marketing (D) Multistage marketing
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23. Pricing decisions are most complex at which stage of the product life
cycle?
(A) Decline stage (B) Growth
(C) Introduction (D) Maturity

24. Branding seeks


(A) To differentiate the product
(B) To charge differential price
(C) To sell the product in different countries
(D) To give attractive name to a product

25. The most widely used method of collecting the primary data is
(A) Experimental Research (B) Observation Research
(C) Statistical Research (D) Survey Research

26. If the EOQ for an item of inventory in a firm is 1000 units, the estimated
demand for the term next year gets doubled, what shall be the revised EOQ
next year, all other relevant costs remaining unchanged ? (A) 1000
(B) 1414
(C) 2000
(D) None of the above

27. From the following two statements, choose the correct answer:
Statement I : A person can have one utility curve for one situation and a
quite different one for the next situation.
Statement II : Business executive with a linear utility curve can effectively use
the expected monetary value as their decision criterion.
Codes:
(A) Statement I is true, but II is false.
(B) Statement I is false, but II is true.
(C) Both the Statements I and II are true.
(D) Both the statements I and II are false.

343
28. Which of the following is not included in the Five-p model of
transformation organization used in the Production and Operations
Management?
(A) People
(B) Plant
(C) Production
(D) Programmes

29. Demand forecasting through “Survey of Buyer‟s Intentions” is not


suited for which type of products?
(A) ‗Convenience goods‘
(B) Industrial products
(C) New products
(D) Consumer durables

30. The names of certain reputed authors and their works are listed in the
following lists. Match the names and their works in the correct order:
List – I List – II
a. Elwood S. Buffa and Rakesh K. Sarin i. A Behavioral Theory of the Firm

b. Richard M. Cyert and James E March ii. Introduction to operations


research

c. Martin K. Starr and D.W. Miller iii. Production and Operations


Management

d. J.M. Juran iv. Quality Control Handbook

e. Hillier and Leiberman v. Inventory Control: Theory and


Practice
Codes:
abcde
(A) i ii iii iv v
(B) ii iii iv v i
(C) iii iv i ii v
(D) iii i v iv ii

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31. What is the probability of a value, chosen from a population, is less than its
median?
(A) 1.0 (B) 0.75
(C) 0.50 (D) 0.25
32. If in a given Binomial distribution with „n‟ fixed and P < 0.5, then
(A) The Poisson distribution will provide a good approximation
(B) The Binomial distribution will be skewed to the left
(C) The Binomial distribution will be skewed to the right
(D) The Binomial distribution will be symmetric
33. What separates the physical aspects of data storage from the logical aspects
of data representation?
(A) Schema (B) Relationships
(C) Constraints (D) Data
34. The components of E-business model are
i. Web Server
ii. Web Master
iii. Internet
iv. Web Administrator
Codes:
(A) i, ii, iii & iv
(B) i, ii & iii
(C) i & iii only
(D) iii only
35. The simple probability of the occurrence of an event is called the
(A) Bayesian probability
(B) Conditional probability
(C) Joint probability

345
(D) Marginal probability

36. Indicate the statement which is not correct:


i. Credit risk is loss on account ofdefault of repayment of loan.
ii. Liquidity risk is the risk onaccount of the mismatches ofcash inflow and
outflow in afirm.
iii. Basic risk is the risk in a firmowing to the differences in theindex to which
financial assetsand liabilities are tied up.
iv. Forward rate agreement is acontract where a borrower /lender locks the
interest rateand protects itself from the losson account of change in thefuture
interest rate.
Codes:
(A) i and ii
(B) ii and iii
(C) iii and iv
(D) None of the above
37. Which of the following facts are notcorrect in the context of India‟s
relations with the WTO?
i. India has been the founder member of the GATT.
ii. India has agreed to abide by the arrangement on the intellectual property
rights.
iii. Under the trade-related investment measures, India has already notified its
stand.
iv. India has agreed to allow entry to Foreign Service providers.
v. The Indian government has amended the Civil Procedure
Code for the benefit of Foreign Service providers.
Codes:
(A) i and ii (B) ii and iii
(C) iv only (D) v only

346
38. Intra-firm transfer of technology is found when
(A) the price of technology development is very low.
(B) it is difficult to protect the technology through patents.
(C) the price of technology is very high.
(D) the technology is developed in association with an allied firm
39. Match the theories of Foreign Direct Investment with their
contributors:
List – IList – II
(Theory) (Contributor)
a. Industrial Organization Theory i. Kemp &McDougall
b. Location Specific Theory ii. Hood and Young
c. Product Cycle Theory iii. Stephen Hymer
d. Two-Country Model iv. Raymond Vernon
Codes:
abcd
(A) i ii iii iv
(B) iv iii i ii
(C) iii ii iv i
(D) i ii iv iii
40. Assertion (A): The laws regarding patents and trademark are
ineffective in many countries.
Reasoning (R): There are cases when a government does not abide by the
rulings of theInternational Court of Justice.
(A) (A) and (R) both are correct, and (R) is the right explanation of (A).
(B) (A) and (R) both are correct, but (R) is not the right explanation of (A).
(C) (A) is correct, but (R) is not correct.
(D) (R) is correct, but (A) is not correct.

347
41. A study conducted by the Entrepreneurship Development Institute of India,
Ahmedabad, revealed that the possession of competencies is necessary for
superior performance of the entrepreneurs. The study was conducted under the
guidance of
(A) James T. McCrory
(B) David C. McClelland
(C) James J. Berna
(D) P.L. Tandon
42. is considered as a creative capital which performs economic
functions different from other investment vehicles, which primarily serve as the
expansion capital.
(A) Equity Capital
(B) Fixed Capital
(C) Venture Capital
(D) Share Capital
43. Which is the apex body in India for formulating the policy in respect of
entrepreneurship development?
(A) Reserve Bank of India
(B) Small Industrial Development Bank of India
(C) National Entrepreneurship Board
(D) Industrial Development Bank of India
44. means identifying and imitating the best in the world at specific
tasks.
(A) Quality circle
(B) Bench marking
(C) Strategy
(D) Outsourcing
45. Which of the following factors can be regarded as a symptom of industrial
sickness?
(A) Lowering the employee‘s morale
348
(B) Delay and default in the payment of dues
(C) Continuous decrease in the price of its shares
(D) All of the above
46. Assertion (A): Ethical relativism means that there are universal standards
of human behavior.

Reasoning (R): Ethical behavior is primarily personal behavior conforming to


standards of morality.

(1) (A) is correct, and (R) is the right explanation of (A).

(2) (A) is incorrect, and (R) is a correct statement in isolation.

(3) (A) and (R) both are incorrect.

(4) (A) is correct, but (R) is not the right explanation of (A).

47. Clause 49 of SEBI Regulations was amended on

(A) 15 August, 2000

(B) 26 August, 2003

(C) 26 January, 2007

(D) 14 February, 2008

48. Fundamental legal obligations in taking corporate business decisions are


formulated on the basis of

(A) Judicial Principles

(B) Moral Principles

(C) Ethical Principles

(D) Legislative Principles

49. Corporate governance mechanism should ensure that corporate


executive make strategic decisions that serve the entire group of

(A) Environmentalists

(B) Government officials

349
(C) Suppliers

(D) Shareholders

50. Morality of an employee in a business organization depends upon

(A) Individual disposition

(B) Understanding of business activities

(C) Understanding of individual in a group

(D) Family setup of individual employee

350
UGC NET PAPER II DECEMBER 2013
1. The Marshallian utility analysis is based on a less valid assumption of

(A) Cardinal measurement of utility


(B) Constant marginal utility of money
(C) Diminishing marginal utility of goods
(D) Additivity of the utility
2. An appropriate pricing strategy for a new product to be introduced in the
market will be
(A) Average/Marginal cost-plus pricing
(B) Skimming/Penetrating pricing
(C) Product-line pricing
(D) Differential pricing
3. Economic capacity of a plant represents the firm‟s capability for
(A) Maximum physical output
(B) Maximum marginal output
(C) Break-even level of output and sale
(D) Output that equates average and marginal costs
4. Multi-stage approach to product pricing in a firm involves
considerations for setting the price as follows:
i. Selection of firm‟s objective
ii. Composition of marketing-mix
iii. Selection of target market
iv. Selection of pricing policy and strategy
Indicate correct sequence:
(A) iv → ii → i → iii
(B) iii → i → ii → iv
(C) ii → iv → iii → i

351
(D) i → iii → ii → iv
5. Which one of the following practices is not sought to be regulated under the
Consumer Protection Act, 1986?
(A) Sales of defective goods
(B) Supply of services having some deficiency
(C) Misleading advertisements
(D) Goods supplied free of charge
6. The leadership prototype
(A) is useful primarily for selection and training of employees
(B) uses LPC (Least Preferred Co-worker) as an important component
(C) depicts the image of a model leader
(D) emphasizes leadership development
7. Which is not a perceptual process stage?
(A) Attention/selection
(B) Interpretation
(C) Follow-through
(D) Retrieval
8. Which statement is correct?
(A) Goals act as the set of constraints that an organization must satisfy.
(B) Deterministic goals specify the end or direction towards which the
organization applies its efforts, and they can be fairly determined.
(C) Goals may be categorized as deterministic and constraint goals.
(D) All of the above.
9. According to Fiedler‟s Contingency Model of Leadership, which one of the
following is not a situational variable?
(A) Leader-Member relations
(B) Task structure
(C) Position power

352
(D) Maturity of followers
10. Which is not a centralized communication network system?
(A) Wheel Network
(B) Y-shaped Network
(C) Circle Network
(D) Chain Network
11. Why is „procedural justice‟ important in the context of the management of
misconduct?

(A) It reflects on the integrity of HR professionals.

(B) It ensures that individuals have a sense that they have been treated fairly.

(C) It reflects on the values and attitudes of top management.

(D) It protects the interest of daily wage earners.

12. To be effective a points-based rating system requires:

(A) Close management control

(B) Comprehensive, reliable and consistent information

(C) Objectivity in assessments

(D) 360° assessment

13. Too much of reliance on internal recruitment can result in

(A) Reduced job performance

(B) High labor turnover

(C) Internal conflict

(D) Poor group dynamics

14. The concept of stagnation in the context of HRM means:

(A) Lack of appropriate selection criteria.

(B) HR staff having very limited experience outside the HR functions.

353
(C) Over-reliance on the internal labor market to fill new positions.

(D) Lack of integration of recruitment and selection into the wider human
resource function.

15. Negotiations are an important aspect of the collective-bargaining


process. What do they ensure?

(A) That conflict is contained within manageable boundaries.

(B) That there is an agreement between all parties involved.

(C) That conflict is always resolved.

(D) It achieves a set of lasting agreements.

16. If the going rate of interest is above the coupon rate, the bond will sell :

(A) At a Premium

(B) At a Discount

(C) At Par

(D) None of the above

17. In case the sales or project‟s investment deviates from expected ones, it
needs

(A) Optimistic scenario analysis

(B) Sensitivity analysis

(C) Simulation analysis

(D) Financial break-even analysis

18. „Trading on equity‟ refers to

(A) Optimum capital structure

(B) Appropriate capitalization

(C) Capital gearing

(D) Watered capital

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19. Match the items of two lists, giving the correct code:

List – I List – II

a. Dividend Capitalization Model i. John Lintner

b. Dividend Relevance Model ii. James E. Walter

c. Dividend Irrelevance Model iii. Myron Gordon

d. Dividend Payout Model iv. Modigliani & Miller

Codes:

a b c d

(A) ii i iii iv

(B) i iv ii iii

(C) iii ii iv i

(D) iv iii i ii

20. The excess payment by the new company to the amalgamating companies
for the appraised value of the assets and liabilities taken over is accounted as

(A) Capital Reserve

(B) Bonus Share Capital

(C) Goodwill

(D) Amount paid for the acquisition of the brand

21. Which of the following is direct marketing?


(A) Face to-face marketing
(B) Catalogue marketing
(C) Direct mailing
(D) Test marketing

22. In marketing research, primary data can be collected through


(A) Observational Method
(B) Survey Method

355
(C) Experimental Method
(D) All of the above

23. Holistic marketing does not include


(A) Internal Marketing
(B) Integrated Marketing
(C) Performance Marketing
(D) Financial Marketing

24. Which of the following is not a distinctive characteristic of services?


(A) Transparency (B) Intangibility
(C) Inseparability (D) Perishability

25. To remain dominant, a market leader looks for


(A) Ways to expand total market demand
(B) Attempting to protect its current share
(C) Increasing its market share
(D) all of the above

26. Consider the names of organizations/persons listed in List – I and their


role/functions given in List – II:
List – I List – II
a. Bureau ofService quality Standards (BIS) i. Measurement of service
qualityIndian
B.ZeithmalParasuraman and Berry ii. Measurement of quality of
educational service
c. ISO iii. Standardization and quality
control of manufactured goods
d. National Assessment and Accreditation Council iv. Quality marketing
and Certification of standards
Indicate the correct matching:-
Codes:-
a b c d
(A) i ii iii iv

356
(B) ii iii iv i
(C) iv ii iii i
(D) iii iv i ii
27. In Linear Programming, which one of the following cases is not a type of
sensitivity analysis?
(A) Model building (B) Objective-function ranging
(C) Pricing out (D) Right hand-side ranging
28. The upper control limit for an X chart, with n = 9, Mean = 26.7, R = 5.3 and
d2 = 2.970, is
(A) 24.9 (B) 26.11 (C) 27.29 (D) 28.48
29. The additional cost of shortening an activity by one unit of time is
(A) Cost slope (B) Crash cost (C) Crash time (D) Least cost
30. Which method is least suited for forecasting the demand of a new product?
(A) Survey of Buyers‘ Intentions (B) Composite Opinions of Sales
Force
(C) Test Marketing(D) Time-Series Analysis
31. In a hypothesis test, α = 0.05 and β = 0.10, the power of the test is
(A) 0.10 (B) 0.90
(C) 0.95 (D) 0.15
32. When performing a Chi-square hypothesis test, what happens when
expected frequencies in several cells are too small?
(A) Value of χ2 will be overestimated.
(B) The null hypothesis will be more likely to be rejected than it should be.
(C) The degrees of freedom are greatly reduced.
(D) (A) and (B), but not (C).

357
33. Under which situation, the method of „experimentation, modeling and
sensitivity analysis‟ is used to determine the information requirements of the
management?
(A) Total Uncertainty
(B) High Risk
(C) Low Risk
(D) Certainty
34. The technique(s) that can be used in data mining is/are:
(A) Non-linear Regression Methods
(B) Decision tree
(C) Neural networks
(D) All of the above
35. A Binomial distribution may be approximated by a Poisson
distribution, if:
i. „n‟ is large and „p‟ is large.
ii. „n‟ is small and „p‟ is large.
iii. „n‟ is small and „p‟ is small.
iv. „n‟ is large and „p‟ is small.
Codes:
(A) i, ii and iii
(B) ii only
(C) iii and iv only
(D) iv only
36. Double taxation relief is normally provided by the country in which the
parent company has its legal residence. It is provided in the following modes:
i. Credit system without deferral
ii. Credit system with deferral
iii. Deduction of tax paid abroad as expenditure

358
iv. Investment credit
v. Tax subsidy
Identify the correct combination.
Codes:
(A) i, ii, iii and iv
(B) i, ii, iv and v
(C) ii, iii, iv and v
(D) i, ii, iii and v
37. The strategies of a global firm are affected by the following factors:
i. Different countries have different labor mixes.
ii. The legal, economic, social and cultural environment varies from one
country to another.
iii. Different countries have different time lines and geographical
boundaries.
iv. Political relationship between the home country and the host country.
Indicate the correct combination.
Codes:
(A) i, ii and iii
(B) ii, iii and iv
(C) i, ii and iv
(D) i and ii only
38. Match the items of List – I and List – II:
List – I List – II
a. UNCTAD I i. India
b. UNCTAD II ii. Brazil
c. UNCTAD X iii. Thailand
d. UNCTAD XI iv. Switzerland

359
Indicate the correct matching.
Codes:
abcd
(A) iv i iii ii
(B) iii i iv ii
(C) ii i iii iv
(D) iv i ii iii
39. In the context of International Business, whether an equal distribution of
income in the host country:
(A) Has nothing to do with the MNCs market segmentation strategy.
(B) Matters greatly to the MNCs market segmentation strategy.
(C) Has little impact on the MNCs market segmentation strategy.
(D) Has a significant impact on the MNCs market segmentation strategy if the
economy is at the take-off stage.
40. Statement-I: Cost of retained earnings is included in the cost of equity in the
context of international business.
Statement-II: Interest rate swap and currency swap are used
interchangeably in international business.
(A) Statement I is true, but Statement II is false.
(B) Statement I is false, but Statement II is true.
(C) Both the statements I and II are true.

(D) Both the Statements I and II are false.

41. Who said – “An entrepreneur always searches for change, responds to it and
exploit it as an opportunity.”?
(A) James Burna
(B) McClelland
(C) Peter F. Drucker
(D) Robert C. Ronstadt

360
42. „Kakinada Experiment‟ on achievement motivation was conducted in
(A) Uttar Pradesh
(B) Jammu & Kashmir
(C) Andhra Pradesh
(D) Gujarat
43. The entrepreneurial process consists of the following steps:
i. Management of the resulting enterprise.
ii. Determination of the required resources.
iii. Identification and evaluation of the opportunity.
iv. Development of the business plan.
Indicate the correct sequence. Codes:
(A) iii iv i ii
(B) iv i iii ii
(C) iii iv ii i
(D) iv i ii iii
44. Match the items given in List – I and List – II:
List – I List – II
a. Market Research i. Sales promotion
b. Financial Plan ii. Form of business
c. Ownership iii. Budgeting
d. Marketing Plan iv. Exploring market
opportunity
Codes:
abcd
(A) i ii iii iv
(B) iv iii i ii

361
(C) iv iii ii i
(D) i ii iv iii
45. TePP stands for
(A) Technology for Promotion and Production
(B) Trade for Profitability and Productivity
(C) Technopreneur Promotion Programme
(D) None of the above
46. Indo-American Model of Corporate Governance sets top most priority to
(A) Business growth

(B) Customers

(C) Employees

(D) Shareholders

47 . Good governance in corporate sector depends upon

(A) Strong political will

(B) Transparency and accountability

(C) Trade Union practices

(D) Social and political responses

48. Corporate leaders in India in private sector are tempted by a very high target
of and the concerned employee has to achieve the target for promotion and
stability.

(A) Money making

(B) Business growth

(C) Product development

(D) Profit

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49. Corporate business ethics is norms and pattern that spring
from organizational view of good and bad, right and wrong.

(A) Social

(B) Behavioral

(C) Institutional

(D) Individual

50. Trade Union strike supporting a political cause and affecting


production activities is a problem related to

(A) Socio-economic phenomenon

(B) Ethical and technical phenomenon

(C) Ethical and economic phenomenon

(D) Socio-political phenomenon

363
UGC NET PAPER II SEPTEMBER 2013
1. The sum of the value of all final goods and services produced within a
country and net factor income from abroad is termed as
(A) GNP (B) Nominal GDP
(C) NNP (D) Real GDP
2. If a firm raises Rs1,00,000 by the issue of debentures at 10%, repayable after
10 years, the rate of return that equates the present value of cash inflows with
the present value of cash outflows is referred to as
(A) Explicit cost (B) Implicit cost
(C) Specific cost (D) Future cost
3. The major objective of economists to monopolies is
(A) Lack of technological progress in such industries.
(B) The dangerous impact on democratic government.
(C) The inability in an industry where there is a single producer.
(D) The tendency to restrict output and charge higher price.
4. Statement I: Demand for a commodity refers to quantity of the commodity
demanded at a certain price during any particular period of time.
Statement II: Contraction of demand is the result of increase in the price of the
goods concerned.
(A) Both I & II are correct.
(B) Both I and II are incorrect.
(C) I is correct and II is incorrect.
(D) II is correct and I is incorrect.
5. Match the items given in List-I with most suitable options given in List- II.
List – I List – II
(a) Rate of discount which equates
the net present value to zero. (i) Payback period
(b)Ratio of present value of cash

364
inflows to the cash outflow. (ii) Internal Rate of Return
(c) Percentage of annual net income
earned on average fund invested in a project. (iii) Profitability
Index
(d) Investment divided by annual net cash
inflow. (iv) Average Rate of Return
Codes:
(a) (b) (c) (d)
(A) (iii) (ii) (iv) (i)
(B) (iii) (ii) (i) (iv)
(C) (ii) (iii) (iv) (i)
(D) (ii) (iii) (i) (iv)
6. The process through which individuals attempt to determine the causes
behind others‟ behavior is known as
(A) Perception
(B) Attitude
(C) Attribution
(D) Social identity theory
7. Which theory of human motivation focuses on personal perceptions of the
performance process?
(A) Adam‘s Theory of Inequality
(B) McClelland‘s Need Theory
(C) Vroom‘s Expectancy Theory
(D) Alderfer‘s ERG Theory
8. Annual Reports, Balance Sheets, Brochures and Advertisements in
organizational communication are the means to aim at
(A) Influencing
(B) Image building
(C) Group building
(D) Credibility building
365
9. Match the following:

a. Attitudes 1. Beliefs that individuals possess certain characteristics


because of their membership in certain groups.

b. Job Satisfaction 2. Negative attitude toward the members of specific


groups, based solely on the fact that they are members of those groups.

c. Prejudice 3. Positive or negative attitudes held by individuals toward


their jobs.

d. Stereo types 4. Relatively stable clusters of feelings, beliefs and


behavioral intentions toward specific objects, people or institutions.
Codes:

a b c d

(A) 1 2 3 4

(B) 2 3 4 1

(C) 3 4 1 2
(D) 4 3 2 1

10. Match the following:

a. Delegating 1. A function of a situation wherein a leader is effective


only when the style used to influence and alter the situation is appropriate.

b. Situational Theory 2. Low nurturing and low regulating behavior.

c. Grid training 3. A function of a situation wherein a leader permits


subordinates to take part in decision making and permit them a considerable
degree of autonomy.

d. Participative Leadership 4. A multi-step process designed to cultivate


concern forpeople and concern for production.

Codes:

abcd

(A) 1 2 3 4

366
(B) 2 1 4 3

(C) 3 2 4 1

(D) 4 3 1 2

11. On-the-job training methods are not based on

(A) Demonstration methods

(B) Interactive methods

(C) Vestibule Training methods

(D) Apprentice training method

12. Minimum wage means

(A) Wage sufficient to ensure the workman food, shelter, clothing, frugal
comfort and provision for evil days.

(B) Wages paid in proportion to workman‘s work efficiency.

(C) A wage sufficient to satisfy the workman‘s basic needs.

(D) A sum of money paid under contract by an employer to a workman for


services rendered.

13. Which of the following statement is true?

(A) Profit sharing is an agreement freely entered into by which the employees
receive share fixed in advance from the organization‘s profits.

(B) An experiment in profit shares on a wide scale would therefore be definitely


undertaking a voyage of an unchartered sea.

(C) Profit distribution under a profit sharing plan is used to fund employee
retirement plans.

(D) All of the above.

14. Performance appraisal includes

(A) Check reviews done by the supervisors.

(B) Review his performance in relation to the objectives and other behaviors.

367
(C) Promote employees for self-appraisal.

(D) All of the above.

15. Match the following:

a. Human Resource Strategy 1. A goal-directed approach in which


workers and their supervisors set goals together for the upcoming appraisal
period.

b. Compensation 2. Time during which employees can


choose not to be at work.

c. Flexi time 3. A legally required benefit that


provides medical care, income continuation and rehabilitation expenses.

d. Management by Objectives 4. A firm‟s deliberate use of human


resources to help it to gain or maintain an edge against its competitors.

Codes:

abcd

(A) 1 2 3 4

(B) 4 3 2 1

(C) 2 3 4 1

(D) 3 4 1 2
16. In which case,

The acquirer puts pressure on the management of the target company by


threatening to make an open offer; the board capitulates straight away and
agrees for settlement with the acquirer for change of control.

(A) Poison Put

(B) Bear Hug

(C) Poison Pill

(D) None of the above

368
17. Which of the following method of incorporation of risk in the capital
budgeting decision framework is useful for situations in which decisions at one
point of time also affect the decisions of the firm at some later date?

(A) Certainty Equivalent Approach

(B) Probability Distribution Approach

(C) Risk-adjusted Discount Rate Approach

(D) Decision-tree Approach

18. In which of the approach, the market value of the firm depends upon the
EBIT and the overall cost of capital

(A) Net Income Approach

(B) Net Operating Income Approach

(C) Modigliani-Miller Approach

(D) None of the above

19. Which is the assumption of Modigliani and Miller approach to cost of


capital?

(A) The firms can be classified into homogeneous risk class.

(B) The capital markets are assumed to be perfect.

(C) All investors have the same expectations from a firm‘s net operating income
which is necessary to evaluate the value of a firm.

(D) All of the above.

20. Match the following:

List – I List – II

(Functions of Finance) (Significance)

a. Financial Statements 1. Check on Financial Activities

b. Administration of Tax 2. Reduction of Tax Liability

c. Internal Audit 3. Allocation of Fund

369
d. Budgeting 4. Income Statement

Codes:

abcd

(A) 1 2 3 4

(B) 4 3 2 1

(C) 4 2 1 3

(D) 2 3 4 1

21. A deliberate and careful choice of organization, product, price


promotion, place strategies and policies best define the concept of
(A) Marketing Mix
(B) Product Mix
(C) Market Penetration
(D) Market Segmentation
22. Rational motives in buying process are explained as
(A) Motives based on careful, logical reasoning and self-acceptance.
(B) Motives based on sensual satisfaction, fear and entertainment.
(C) Activity buyer adopts to satisfybuying needs.
(D) All of the above.
23. Which of the following combination, according to hierarchy of effects
model is correct?
(A) Awareness – Liking – Knowledge – Conviction – Preference – Purchase.
(B) Awareness – Knowledge – Liking – Preference – Conviction – Purchase.
(C) Awareness – Liking – Knowledge – Conviction – Purchase – Preference.
(D) Awareness – Preference – Knowledge – Liking – Preference – Purchase.
24. This consists of two lists of statements or terms and the candidate has to
match an item in one list with an item in the other.
List – I List – II

370
(Statement) (Terms)
I. Brands which are evaluated for the purchase decision. 1. Consideration
set
II. Brands which are considered by the buyer for evaluation. 2. Evoked set
III. Brands which are disliked and avoided. 3. Inept set
IV. Brands which the buyer is aware but is indifferent towards it. 4. Inert set
Codes:
I II III IV
(A) 2 3 1 4
(B) 1 2 3 4
(C) 2 1 3 4
(D) 2 1 4 3
25.“Marketing concept is the recognition on the part of management that all
business decisions at the firm must be made in the light of customer needs and
wants, hence that all marketing activities must be under one supervision and
that all activities of a firm must be coordinated at the top in the light of market
requirements.”
Who said it?
(A) Lazo and Carton
(B) Schwartz G
(C) King RL
(D) C.P. McNamara
26. Which one of the following is not a qualitative forecasting method?
(A) Educated guess
(B) Executive Committee Consensus
(C) Delphi method
(D) Linear regression method
27. Statement I: Mean (X) chart do not give the desired result about process
variability.

371
Statement II: Range (R) chart monitors process variability.
(A) Statement I is correct, but Statement II is false.
(B) Statement II is correct, but Statement I is false.
(C) Both Statements I and II are correct.
(D) Both Statements I and II are false.
28. Which one is not a part of control charts for attributes?
(A) P-chart (B) f-chart
(C) np-chart (D) c-chart
29. There are different phases in a Operations Research Project. They are
(i) Research phase (ii) Action phase (iii) Judgment phase
The correct sequence of these phases is
(A) (i), (ii), (iii)
(B) (iii), (i), (ii)
(C) (ii), (iii), (i)
(D) (iii), (ii), (i)
30. The Graphical method can be used to solve
(A) A Linear Programming Problem (LPP) with all integer data.
(B) A LPP with two decision variables.
(C) Any LPP.
(D) A transportation problem with two origins and two destinations.
31. A vendor can make a profit of Rs3,000 with a probability of 0.4 or make a
loss of Rs1,000 with a probability of 0.6. What is his expected profit?
(A) Rs600 (B) Rs800
(C) Rs1,000 (D) Rs500
32. If the sample size is less than 50, which non parametric test can be used to
test the independence of attributes?
(A) Chi-square test

372
(B) Fisher Irwin test
(C) Cochran Q test
(D) Kruskal Wallis test
33. Match the items given in List-I with most appropriate options given in List-
II.
List – I List – II
(a) Centroid
Method (i) Multiple Regression
(b) Hierarchical Method (ii) Factor Analysis
(c) Relationship between a single metric dependent
and two or more independent variables (iii) MANOVA
(d) The main and interactive effects of categorical
variables on multiple dependent interval variables. (iv) Cluster Analysis
Codes:
(a) (b) (c) (d)
(A) (iv) (ii) (i) (iii)
(B) (ii) (iv) (i) (iii)
(C) (ii) (iv) (iii) (i)
(D) (iv) (iii) (i) (ii)
34. Identify the window not associated with SPSS.
(A) Editor
(B) Syntax
(C) Output
(D) Format Cells
35. Match the items given in Column-A with the items given in Column-B.
Column – A Column - B
(a) A process to upgrade the quality of the

373
data before it is moved into a data warehouse. (i) Pattern recognition
(b) A system that is used to run the business in real
time and is based on current data. (ii) Data Scrubbing
(c) A critical success factor in data mining of
large data store. (iii) Operational system
Codes:
(a) (b) (c)
(A) (ii) (iii) (i)
(B) (iii) (ii) (i)
(C) (i) (ii) (iii)
(D) (ii) (i) (iii)
36. In BCG Matrix which division represents the organization‟s best long- run
opportunities for growth and profitability?
(A) Question marks
(B) Stars
(C) Cash Cows
(D) Dogs
37. In a comprehensive strategy formulation framework which matrix reveals
the relative attractiveness of alternative strategies and thus provides objective
basis for selecting specific strategies.
(A) SPACE Matrix
(B) SWOT Matrix
(C) QSPM Matrix
(D) Competitive Profile Matrix (CPM)
38. Stage 2 of strategy formulation consists of
(A) EFE Matrix, the IFE Matrix and the Competitive Profile Matrix (CPM).
(B) SWOT Matrix, SPACE Matrix, BCG Matrix, the Internal- External (IE)
Matrix, and the Grand Strategy Matrix.

374
(C) Quantitative Strategic Planning Matrix (QSPM).
(D) EFE Matrix, the IFE Matrix and Quantitative Strategic Planning Matrix
(QSPM).
39. Match the following:
Term Explanation
a. Strategy 1. Enduring statements of purpose
that distinguish one business from other simple firms.
b. Vision 2. Specific results that an organization
seeks to achieve.
c. Mission 3. What do we want to become?
d. Objectives 4. Means by which long term
objectives will be achieved.
Codes:
abcd
(A) 4 3 1 2
(B) 4 2 3 1
(C) 1 3 2 4
(D) 1 2 3 4
40. Match the following:
List – I List – II
(a) Italian Culture i. Importance on group loyalty and consensus
(b) American Culture ii. Employment as workers of those who are
agreeable, respectful and obedient rather than innovative, creative and
independent.
(c) Mexican Culture iii. Willing to do business with individuals
they do not know.
(d) JapaneseCultureiv. A culture wherein you do
notsoftenupexecutiveswithpraisebeforecriticize.
Codes:
(a) (b) (c) (d)
375
(A) i ii iii iv
(B) iv iii ii i
(C) ii iii iv i
(D) iii iv i ii
41. An Entrepreneur who is dominated more by customs, religions, traditions
and past practices and he is not ready to take any risk is called as
(A) Drone Entrepreneur
(B) Adoptive Entrepreneur
(C) Fabian Entrepreneur
(D) Innovative Entrepreneur
42. “Poverty is an artificial creation. It does not belong to human civilization
and we can change that and can make people come out of poverty through
redesigning our institutions and policies.” This preamble refers to
(A) Women Entrepreneurship
(B) Corporate Entrepreneurship
(C) Social Entrepreneurship
(D) None of the above
43. Match the following:
List – I List – II
(Subject) (Technique)
a. Entrepreneurship 1. Innovation
b. Marketing 2. Promotion Mix
c. Inventory Management 3. Reorder Level
d. HR Planning 4. Appraisals
Codes:
abcd
(A) 1 3 2 4

376
(B) 1 2 3 4
(C) 4 3 2 1
(D) 4 2 3 1
44. means identifying and imitating the best in the world at specific
tasks and functions.
(A) Quality circle
(B) Outsourcing
(C) Bench marking
(D) Continuous Improvement
45. Match the following:
(a) Action planning (i) New Actions are taken and old habits are
broken.
(b) Accountability (ii) It is the periodic review of what has
already been executed.
(c) Working the plan (iii) It is the art of delegation to implement a
business plan.
(d) Reviewing the progress (iv) Making decisions relating to the order in
which the Business plan is implemented.
Codes:
(a) (b) (c) (d)
(A) (ii) (iii) (iv) (i)
(B) (iv) (iii) (i) (ii)
(C) (i) (iv) (iii) (ii)
(D) (iii) (iv) (ii) (i)
46. Which of the following duties is not a general duty of directors of a
company?

(A) Duty of good faith

(B) Duty of care

(C) Duty to attend Board Meeting


377
(D) Duty not to delegate

47. The principles to be followed for corporate social responsibility are

(A) Involvement of stakeholders.

(B) Maintaining transparency in reporting.

(C) Independent verification of policies and outcome.

(D) All of the above.

48. Match the following:

List – I List - II

(a) Value (i) AhamBrahmasmi

(b) Unethical behavior (ii) Recycling Waste

(c) Indian ethos (iii) Bribery

(d) Environmental responsibility (iv) Trust worthiness

Codes:

(a) (b) (c) (d)

(A) (i) (iii) (ii) (iv)

(B) (iv) (iii) (i) (ii)

(C) (ii) (iii) (iv) (i)

(D) (i) (iii) (iv) (ii)

49. The obligation of an organization behave in a ethical way is known as

(A) Knowledge about ethics

(B) Social responsibility of business

(C) Organizational behavior

(D) Business without ethics

50. Identify the correct sequence of steps in a value identification process:

378
(i) Define the role of executive in leading the staff.

(ii) Learn about and discuss the power of shared values.

(iii) Obtain consensus that the leaders are committed to creating value based
work place.

(iv) Provide written material the executives can share with their reporting staff.

Codes:

(A) (i), (ii), (iii) and (iv)

(B) (iv), (ii), (iii) and (i)

(C) (ii), (iii), (i) and (iv)

(D) (ii), (iii), (iv) and (i)

379
UGC NET PAPER II JUNE 2013
1. The hypothesis that „consumption in one period would be a function of
income in that period and the returns on savings of the previous period‟ is given
by
(A) Irving Fisher (B) Franco Modigliani
(C) Duesenberry (D) Robert Hall
2. From the following identify one which is not a property of Indifference
curve?
(A) Indifference curves are downward sloping.
(B) Indifference curves are concave to the origin.
(C) Indifference curves are convex to the origin.
(D) Indifference curves do not intersect each other.
3.Which one of the following statements is true?
(A) Business decisions cannot be taken without a sound knowledge of Macro
Economic Theories.
(B) Knowledge of Economic Theory is misleading in making business
decisions.
(C) With the help of Economic Theories, it is always possible to predict the
future accurately.
(D) Every Economic Theory is based on realistic facts which are common to all
societies.
4. Arrange the following in the proper order for decision under capital
budgeting.
(i) Estimating the cost and benefits of proposals.
(ii) Deciding the investment objective.
(iii) Selecting the best investment proposal.
(iv) Applying the capital budgeting decision technique.
Codes:
(A) (ii) (iv) (i) (iii)

380
(B) (ii) (iv) (iii) (i)
(C) (ii) (i) (iv) (iii)
(D) (ii) (i) (iii) (iv)
5. Match the following items in List – A with the most appropriate options from
List – B:
List-A List-B
a. A lender buys securities to protect himself
from a fallinginterest rate1. Interestrate collar
b. A borrower buys securities to protect himself
from rising interest rate 2. Interest rate cap
c. A combination of interest rate cap and floor 3. Interest rate
corridor
d. A combination of two or more interest rate caps 4. Interest rate floor
Codes:
a bcd
(A) 2 4 3 1
(B) 4 2 1 3
(C) 4 2 3 1
(D) 3 2 1 4
6. The form of learning in which people acquire new behaviors by
systematically observing the rewards and punishments given to others is
known as

(A) Operant conditioning

(B) Positive reinforcement

(C) Modeling

(D) Law of effect

7. Diffusion of routine information takes place through

(A) Downward Communication

381
(B) Upward Communication

(C) Horizontal Communication

(D) External Communication

8. An integrated group of activities to bring about a change is known as

(A) Organization development

(B) Interventions

(C) OCTAPACE

(D) Collaborative culture

9. Match the following:

a. Motivation is a function of

fairness in social exchanges. 1. Expectancy Theory

b.People are motivated to behave

in ways that produce valued outcomes. 2. Alderfer‘sERGTheory

c. Determining specific levels of performance for workers to attain and then


striving to attain them. 3. Equity Theory

d. When people are frustrated by their


inability to meet needs at the next higher
level in the hierarchy, they regress to the
next lower category of needs and intensify
their desire to gratify these needs. 4. Goal-Setting Theory
Codes :

abcd

(A) 1 2 3 4

(B) 4 3 2 1

(C) 3 1 4 2

382
(D) 3 4 1 2

10. Match the following:

a. Self-efficacy 1. Determining specific levels of performance for workers to


attain them.

b. Goal setting 2. The belief that one‘s efforts will positively influence one‘s
performance.

c. Expectancy 3. People strive to maintain ratio of their own outcomes to

their own inputs that are equal to that of those with whom they compare
themselves.

d. Equity Theory 4. One‘s belief about having the capacity to perform a task.

Codes:

abcd

(A) 1 2 3 4

(B) 4 1 2 3

(C) 3 4 1 2

(D) 2 3 4 1

11. Human resource planning system includes

(A) Human resource supply forecast

(B) Human resource inventory

(C) Corporate plan

(D) All of the above

12. Who among the following propounded the concept of collective


bargaining?
(A) Beatrice and Gompers

(B) Beatrice and Emerson

(C) Gompers and Emerson


383
(D) Gautt and Gompers

Note:- Answer for the question is not given by UGC

13. What are the benefits of human resource planning?

(A) Achieve economy in hiring new workers.

(B) Match personnel activities and future organization objectives efficiently.

(C) Improve the utilization of human resources.

(D) All of the above

14. Human Resource Management includes

1. Employee Grievance 2. Organizational climate

3. Job incentives 4. Recruitment

5. Selection

Select the correct answer from the following:

(A) 1, 2, 3 and 4 (B) 1, 3, 4 and 5

(C) 1 and 5 (D) All of the above

15. Match the following:

a. Job Analysis 1. Determining worth of a job.

b. Job Evaluation 2. Examining how work adds value to the


ongoing process.

c. Job Design 3. Determining the pertinent facts about the job.

d. Work Flow Analysis 4. Organizing work into the tasks required to


perform a specific job.
Codes:

abcd

(A) 1 2 3 4

(B) 4 3 2 1

384
(C) 3 1 4 2

(D) 2 3 1 4

16. Which ratio explains that how much portion of earning is distributed in the
form of dividend?

(A) Dividend – Debt Ratio

(B) Equity – Debt Ratio

(C) Pay-out Ratio

(D) Earning – Yield Ratio

17. Modern approach to financial management is

I. The total fund requirement of the firm.

II. The asset to be acquired.

III. Payment of dividend to shareholders.

(A) I only

(B) II only

(C) II & III only

(D) I, II & III

18. Participating preference shares are those which participate in the

(A) General meeting of the company

(B) Voting

(C) Profits over and above their fixed dividend

(D) Management of the company

19. Which of the following is one of the critical assumptions of Walters‟


Model?

(A) All financing is done through retained earnings; external sources of funds
like debt or new equity capital are not used.

385
(B) The retention ratio, once decided upon, is constant. Thus, the growth rate, (g
= br) is also constant.

(C) The capital markets are perfect and the investors behave rationally.

(D) All of the above.

20. This consists of two lists of statements or terms and the candidate has to
match an item in one list with an item in the other:

List-I List-II

(Statement) (Terms)

a. Preventing hostile takeover 1. Management buyout

b. Leveraged buyout 2. Green mail

c. Accounting for merger 3. Pooling of interest

d. Financing for merger 4. Cash offer

Codes:

abcd

(A) 1 2 3 4

(B) 2 1 4 3

(C) 2 1 3 4

(D) 3 4 2 1

21. What kind of pricing strategy a firm should normally follow for marketing
electronic goods?
(A) Penetration pricing strategy
(B) Skimming pricing strategy
(C) Cost plus pricing strategy
(D) All of the above
Note:- The answer for the question is not given by UGC

386
22. Which fact is true about on-line marketing?
(A) A website which is user-friendly.
(B) A website which is user-friendly and regularly updated.
(C) A website which is user-friendly regularly updated and make product‘s
graphical image available.
(D) A website which is user-friendly, regularly updated, provides product‘s
graphical image and product‘s price is competitive.
23. Which of the following function involved under marketing
management‟s function?
1. Collection of market information
2. Marketing coordination
3. Marketing controlling
4. All the above
Codes:
(A) 1 & 2
(B) 2 & 3
(C) 3 only
(D) 4 only
24. Two statements are given below:
Statement – I: Product concept of marketing holds that consumers would favor
those products that are available and highly affordable.
Statement – II: Production concept of marketing holds that consumers would
not buy enough of the company‟s product unless the company undertakes
a substantial promotional effort.
Choose the correct option from the four options given below:
(A) Statement I is correct and II is wrong.
(B) Statement II is correct and I is wrong.
(C) Both statements are correct.
(D) Both statements are wrong.

387
25. Match the following:
List-I List-II
a. Differentiation 1. How familiar and intimate consumers are with the brand.
b. Esteem 2. The degree to which a brand is seen as different from
others.
c. Relevance 3. How well the brand is regarded and respected.
d. Knowledge 4. The breadth of a brand‘s appeal.
Codes:
abcd
(A) 1 2 3 4
(B) 2 3 4 1
(C) 3 4 1 2
(D) 4 3 2 1
26. Work measurement refers to
(A) The length of time it takes to complete a work task assigned to a specific
job.
(B) Improving work methods.
(C) Arrangement of machines according to operations.
(D) Planning the work and working for the plans.
27. Facility planning includes
(A) Determination of production capacity
(B) Determination of production facilities location
(C) Determination of the layout
(D) All the above
28. Match the following:
a. For fraction or proportion of defects 1. R-chart
b. For number of defects 2. C-chart

388
c. For number of defects for unit 3. nP-Chart
d. For monitoring process variability 4. P-Chart
a b c d
(A) 1 2 3 4
(B) 4 3 2 1
(C) 2 1 4 3
(D) 3 4 1 2
29. Statement – I: One of the major causes of the industry for larger capacity is
the argument that large facilities facilitate greater economies of scale. But the
major concern for building big capacity is that funds will be tied up or scarcity
of funds.
Statement – II: A viable alternative to larger capacity production facilities is to
develop sub-contractor and supplier networks.
(A) Both statements I & II are correct.
(B) Both statements I & II are false.
(C) Statement I is correct and II is false.
(D) Statement II is correct and I is false.
30. In a symmetrical distribution
(A) Mean, Median and Mode values are identical.
(B) Mean, Median and Standard Deviation are equal.
(C) Mean, Median and Correlation are equal.
(D) None of the above
31. From the following, identify the test which can be used both as parametric
and non-parametric?
(A) ‗t‘ test
(B) ‗F‘ test
(C) ‗Chi-square‘ test
(D) ‗Wilcoxon‘ test
32. Arrange the following in ascending order in the testing of hypothesis:
389
(i) Determining the level of significance
(ii) Deciding the Statistical Test and computation
(iii) Setting the hypothesis
(iv) Decision
Codes:
(A) (iii), (ii), (i) and (iv)
(B) (iii), (i), (ii) and (iv)
(C) (i), (iii), (ii) and (iv)
(D) (i), (iii), (iv) and (ii)
33. Y = a + bX refers to
(A) Y = independent variable, a = slope of the line, b = Y intercept and X =
dependent variable
(B) Y = dependent variable, a = slope of the line, b = Y intercept and X =
independent variable
(C) Y = independent variable, a = dependent variable, b = Y intercept and X =
slope of the line
(D) Y = dependent variable, a = Y intercept, b = slope of the line and X =
independent variable
34. Select the most appropriate option from Column B against the items in
Column A:
Column A Column B
a. Computer used to operate large
corporate systemsand databases1.Componentsofinformationsystem
b. Data flow diagram 2. RAID
c. Equipment, procedures and end user 3. Structured design
Codes:
abc
(A) 3 2 1
(B) 2 3 1
390
(C) 1 2 3
(D) 2 1 3
35. According to Michael Porter, a strategy aims at producing products and
services considered unique industry wide and directed at consumers who are
relatively price-insensitive is known as
(A) Cost Leadership – Best Value
(B) Differentiation
(C) Focus – Low Cost
(D) Focus – Best Value
36. In context of Industry Analysis which matrix allows strategists to
summarize and evaluate economic, social, cultural, demographic,
environmental, political, governmental, legal, technological and competitive
information?
(A) EFE Matrix
(B) CPM Matrix
(C) BCG Matrix
(D) IFE Matrix
37. Which among the following best describes the process of gaining
competitive advantage in a firm?
(A) Strengths → Weaknesses →Distinctive Competencies → Competitive
Advantage
(B) Weaknesses → Strengths →Distinctive Advantages →Competitive
Advantages
(C) Weaknesses → Strengths →Distinctive Competencies →Competitive
Advantages
(D) Distinctive Competencies →Weaknesses → Strengths →Competitive
Advantages
38. According to Porter, the nature of competitiveness in a given industry can
be viewed as a composite of the following five forces:
1. Rivalry among competing firms.
2. Potential entry of new competitors.

391
3. Potential development of substitute products.
4. Bargaining power of suppliers.
5. Bargaining power of consumers.
Identify the force which is central (most powerful) to remaining four:
(A) Potential development of substitute products.
(B) Potential entry of new competitors.
(C) Bargaining power of consumers.
(D) Rivalry among competing firms.
39. Match the following: Organizational Structure Advantage
a. Functional Structure 1. Clarity of project objectives
b. Divisional Structure 2. Smooth delegation of authority and
responsibility
c. Matrix Structure 3. Simple and unexpensive
d. Strategic Business Unit (SBU) 4. Ease of fixing accountability
Codes:
abcd
(A) 1 2 3 4
(B) 3 4 1 2
(C) 3 4 2 1
(D) 4 3 1 2
40. A sound business opportunity is theresult of appropriate interaction
between:
(A) Needs of the society
(B) Capabilities of an entrepreneur
(C) Resources available in the environment
(D) all of the above

392
41. “An entrepreneur always searches for change, responds to it and exploit it
as an opportunity.” Who said it?
(A) F.W. Taylor
(B) Peter F. Drucker
(C) J.R. Tulsian
(D) Max Weber
42. An industrial unit, according to RBI, is sick if
(A) Incurred cash loss in the previous year.
(B) Likely to incur loss in the following year.
(C) Current ratio is less than 1 : 1 with weak debt-equity ratio.
(D) all of the above.
43. Which is not the object of Entrepreneurship Development
Programmes?
(A) To create successful entrepreneur
(B) To remove doubts of entrepreneurs and to give solutions to the problems
(C) To create awareness about Government schemes and programmes
(D) None of the above
44. Match the following:
a. Central Manufacturing Institute 1. Deals with paper industry
b. Central Pulp and Paper Research Institute 2. Deals with pollution
control in Indian Tannerics
c. Central leather Research Institute 3. Deals with Machine Tools
d. Electronic Service and Training Centre 4. Deals with training,
technical and consultancy services
Codes:
abcd
(A) 1 2 3 4
(B) 3 1 2 4

393
(C) 2 3 4 1
(D) 4 3 1 2
45. The customer joining the queue and leaving it afterwards is defined as
(A) Jockeying
(B) Balking
(C) Reneging

(D) None of the above

46. Which among the following is not correct with regards to Clause 49 of
SEBI Act?

(A) It came into effect from 31st December 2005.

(B) Clause 49 is related to the Listing Agreement to the Indian Stock Exchange.

(C) It desires 50 percent independent Directors.

(D) None of the above

47. Which of the following powers of Directors cannot be exercised without the
consent of shareholders in General Meeting?

(A) Power to make calls on shareholders

(B) Power to make loans

(C) Power to buy back its shares

(D) Power to borrow monies exceeding the aggregate of the paid-up capital of
the company and its free reserves.

48. The professional having high ranking and trained to uphold the highest
standard and effective operations, compliance and administration as corporate
governance, is known as

(A) Directors of Company

(B) Chairman of Company

(C) Company Secretary

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(D) Shareholders

49. Governance is the system of values, policies and institutions by which a


society manages its economic, political and social affairs through interactions
within and among the state, civil society and private sector is defined by

(A) World Bank

(B) UNDP

(C) European Commission

(D) None of the above

50. Match the following with regards to environmental ethical issues:

a. Ozone Depletion 1. Lead poisoning

b. Environmental Health 2. Deforestation

c. Logging 3. Food controversies

d. Genetic Engineering 4. CFC

Codes:

abcd

(A) 4 2 1 3

(B) 4 1 2 3

(C) 4 3 2 1

(D) 4 3 1 2

395
UGC NET PAPER II DECEMBER 2012
1. The term Opportunity Cost refers to
(A) Variable Cost
(B) Short-run cost
(C) The cost forgone in favor 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

396
b. Supply Function 2. Isoquants
c. Production Function 3. Engineering Method
d. Oligopoly 4. Factor Prices
Codes:
abcd
(A) 3 4 2 1
(B) 4 3 1 2
(C) 3 2 1 4
(D) 1 2 3 4
6. When analyzing 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?


397
(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 Organizational

(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 organizationally 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

398
(C) Job specification (D) Job duration

15. Exit Policy primarily emphasizes 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) Maximize the wealth of Preference Shareholders

(B) Maximize the wealth of Debenture holders

(C) Maximize 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)

399
(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) Cundiffad 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

400
(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

401
(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

402
(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 at5% 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

403
(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

404
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

405
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

406
UGC NET PAPER II JUNE 2012
1. Cardinal measure of utility is required in
(A) Utility Theory
(B) Indifference Curve Analysis
(C) Revealed Preference
(D) Inferior Goods
2. A Right-ward shift in Demand Curve indicates
(A) A decrease in supply
(B) An increase in quantity supplied
(C) An increase in supply over the previous year
(D) Law of Variable Proportions
3. Which of the following is the condition for equilibrium for Monopolist?
(A) MR = MC
(B) MC = AR
(C) MR = MC = Price
(D) AC = AR
4. Giffen goods are those goods
(A) For which demand increases as price decreases
(B) Which are in short supply
(C) Which have high elasticity of demand?
(D) Which gives rise to a Cob-Web situation.
5. Match List-I with List-II and select the correct answer using the codes given
below the lists.
List – IList – II
(Demand Estimation Method) (Steps involved)
(a) Customer Interview Method 1. Consumers Interview

407
(b) Market Experiment Method 2. Time series or Cross Section
Data
(c) Regression Method 3. Market Stimulation
(d) Demand Forecasts 4. Market Experiments‘ Survey
Codes:
(a) (b) (c) (d)
(A) 1 3 4 2
(B) 1 3 2 4
(C) 2 4 3 1
(D) 4 2 1 3
6. Who divided all activities of the organizations into six groups; Technical,
Commercial, Financial, Security, Accounting and Managerial?

(A) Peter Drucker

(B) D. E. McForland

(C) Henry Fayol

(D) George R. Terry

7. What are the elements that a Mission Statement of an Organization


should include?

(A) Self guidelines for Business Operations

(B) Identifies the reasons for existence of a company and its responsibilities to
the stakeholders.

(C) Identifies the firms‘ customers and their needs and matches them to the
products and services.

(D) All of the above (A), (B) and (C).

8. Changes in population characteristics such as age, gender, race, marital


status, income and education are examples of change:

(A) Demographic

408
(B) Cultural

(C) Geographic

(D) Diversity

9. Which of the following is not included as Micro-Environmental


Variables?

(A) Prevailing economic and political conditions.

(B) Emerging new technologies

(C) Financial conditions and culture

(D) None of the above

10. During his days at Midvale Steel Company F.W. Taylor saw that
employees soldiering – deliberately working at a pace slower than their
capabilities. He identified that, worker indulge in soldiering primarily for the
following reasons:

(A) Fear of losing jobs if they increase their output.

(B) Faulty wage systems.

(C) Out-dated methods of working

(D) All of the above

11. Among the best known trait approaches to personality measurement –


column A gives Traits and column B states the name of authority defining
them. Match the correct combination

Traits Author

(A) 20 + needs Murray

(B) 16 traits Eysenck

(C) 3 traits Cattell

(D) 5 traits Costa &Merree

12.“Third Party intervention” as “Conflict Resolution” is

(A) Often required


409
(B) Seldom required

(C) Required as a mandate, when conflict remains unresolved

(D) Not at all considered as an option

13. The policy of introducing “New Blood” is

(A) Steriotypic

(B) Bureacratic as well as redtapic

(C) Innovative and challenging, making the corporate dynamic

(D) Innovative, challenging, but often resisted

14. An “Assessment Centre” is

(A) A place (B) A technique

(C) Both (A) and (B) (D) None of the above

15. “Organizational learning” and “Learning organization” are

(A) Same (B) Different

(C) Reverse to each other (D) Complementary to each other

16. The value of the firm is maximized when the

(A) Market price of equity share is maximum

(B) Market price of equity share is minimum

(C) Market value of debt is maximum

(D)None of the above

17. Which of the following is the main assumption of Waltar Valuation Model?

(A) All financing is done through Retained earnings and external sources of
funds.

(B) With additional investment the firms business risk will change.

(C) There is a change in the key variables such as EPS and DPS

410
(D) None of the above

18. Which of the following is an important money market instrument?

(A) Debentures

(B) Commercial Paper

(C) Public Deposits

(D) None of the above

19. The method of payment in Mergers and Acquisitions may include

(i) Cash

(ii) Loan stock

(iii) Ordinary shares

(iv) Convertible loan stock

(A) (i) & (iii) only

(B) (i) & (ii) only

(C) (i), (ii), (iii) and (iv)

(D) (ii) & (iv) only

20. Working capital refers to the capital mobilized for meeting

(A) Long-term financial needs of the company

(B) To meet day-to-day financial obligations of the company

(C) To meet the future financial requirements of the company

(D)None of the above

21. Which of the following statement is true?

(A) The essence of marketing is a transaction of an exchange.


(B) Marketing–orientation is philosophy, which has to pervade the
organizationstructure
(C) Marketing is also a managerial function involving analysis, planning and
control marketing activities in an organization
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(D) All of the above
22. A marketing plan is composed of three basic components, namely
1. Objectives 2. Policies
3. Program 4. Procedure
5. Hints 6. Decision
7. Command 8. Periodic
9. Diversity
(A) 1, 2 and 3 only
(B) 6, 7 and 8 only
(C) 5, 7 and 9 only
(D) 2, 3 and 9 only
23. Which of the following is not the stage of new product development?
(A) Idea Generation
(B) Business Analysis
(C) Test Marketing
(D) Market Segmentation
24. Marketing research does not normally
(A) Gather environmental information
(B) Provide a continuous source of information
(C) Relate to all aspects of marketing operations
(D) Describe the current situation
25. Which of the following is not included in 7 P‟s of services marketing?
(A) Physical evidence
(B) People
(C) Process
(D) Marketing plan

412
26. Which of the following is not the type of Plant Layout?
(A) Product Layout
(B) Process Layout
(C) Fixed Position Layout
(D) Residential Layout
27. Which of the following factor is considered in the selection of a plant
location?
(A) Source of Raw-materials
(B) Availability of water
(C) Marketing facilities
(D) All the above
28. Work measurement refers to
(A) The length of time it takes to complete a work task assigned to a specific
job
(B) Improving work methods
(C) Arrangement of machines according to sequence of operations
(D) Planning the work and working the plans
29. The Graphical method can be used to solve
(A) A linear programming problem with all integer data base.
(B) A linear programming problem with two decision variables.
(C) Any linear programming problem.
(D) A transportation problem with two origins and two destinations.
30. If two dice are thrown, the probability that the sum of their points is greater
than 10 is
(A) 1/9
(B) 1/12
(C) 1/3
(D) 1/18

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31. A Binomial distribution is characterized as β (16,0.5) i.e. sample size is 16
and the probability of success is 0.5. The mean and variance of this distribution
will be respectively
(A) 8, 4
(B) 8, 8
(C) 4, 8
(D) 4, 4
32. Two variables are said to be perfectly negatively correlated if
(A) Covariance between them is positive
(B) Coefficient of correlation between them is –1
(C) Covariance between them is negative
(D) None of the above
33. Which type of sampling is appropriate when the population consists of well-
defined groups such that the elements within each group are homogeneous and
between each group they are heterogeneous?
(A) Cluster Sampling
(B) Simple Random Sampling
(C) Stratified Sampling
(D) Judgment Sampling
34. Which of the following is not a type of internet connection?
(A) ISDN
(B) Dial-up
(C) Leased-Line
(D) ISP
35. Match the following:
List – I List – II
(I) Poisson distribution has the property that 1. Its mean is greater than
Variance
(II) Normal distribution is a 2. Symmetric distribution
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(III) Chi-square distribution is 3. Positively skewed
distribution
(IV) Binomial distribution has the property that 4. Its mean and variance
are equal.
Codes:
(I) (II) (III) (IV)
(A) 4 2 1 3
(B) 4 2 3 1
(C) 1 2 3 4
(D) 2 4 3 1
36. WTO comes into being in the year
(A) 1975
(B) 1985
(C) 1995
(D) 2001
37. Which of the following is not Porter‟s generic strategy?
(A) Focus
(B) Cost Leadership
(C) Differentiation
(D) Market segmentation
38. Globalization involves
(A) Free flow of technology from one country to another
(B) Free flow of investment from one country to the other
(C) Free flow of people from one country to the other
(D) All the above
39. Which is a short-term strategy for a firm?
(A) Corporate strategy

415
(B) Business strategy
(C) Company mission
(D) Functional strategy
40. Which is not a global entry strategy?
(A) Exporting
(B) Joint venture
(C) Merger and Acquisition
(D) Blue ocean strategy
41. Which one is not the characteristic feature of Entrepreneurship?
(A) Vision
(B) Risk Bearing
(C) Initiative and Drive
(D) Disloyalty
42. Which of the following organizations is meant for promoting small scale
industries at district level?
(A) SIDBI
(B) DIC
(C) SFCs
(D) NABARD
43. The reason for sickness of small scale industry is
(A) Lack of capital
(B) Lack of market
(C) Severe competition
(D) All the above
44. The measure taken by Government to promote small scale industry.
(A) Provision of land
(B) Provision of marketing facilities

416
(C) Arrangement of credit and raw materials
(D) All the above
45. Small and medium enterprises are
(A) Labor intensive
(B) Capital intensive
(C) Market leader
(D) Industry price determiner

46. Business propositions are to be selected by making an analysis that, how


much the local resources will be depleted in the commencement and the course
of Business. This is known as

(A) Sensitivity Analysis

(B) Common Property Resource use

(C) Environmental Impact Assessment

(D) None of the above

47. Whistle-Blowers are

(A) To be removed from the jobs

(B) To be promoted

(C) To be rewarded for the organizational enrichment

(D) To be protected since they intend to bring out truth

48. Funding through Micro finance to Small and Micro Enterprises is not
successful due to

(A) High rate of interest

(B) Out sourcing of method of providing Micro Finance

(C) (A) & (B)

(D) None of the above

417
49. “Work-Diversity” by nature, does not go against Ethics. But an executive
assistant while getting transferred from “stores” to “dispatch” section created
turmoil in the office. He is

(A) Most ethical in his deal

(B) Fully against work ethics

(C) He is workoholic

(D) A Rigid employer, hard nut to crack

50. Ethical Management is

(A) A Compromise

(B) A Compulsion

(C) A Judgment

(D) (A) and (B)

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UGC NET PAPER II DECEMBER 2011
1. Consider a demand curve which takes the form of a straight-line cutting both
axes. Elasticity at the mid-point of the line would be

(A) 0

(B) 1.0

(C) 1.5

(D) 2.0

2. Price taker firms

(A) Advertise to increase the demand for their product

(B) Do not advertise, because most advertising is wasteful.

(C) Do not advertise because they can sell as much as they want at the current
price.

(D) Who advertise will get more profits than those who do not.

3. OPEC is an example of the type of producer‟s organization known as a

(A) Marketing Board

(B) Producer‘s Co-operative

(C) Trust

(D) Cartel

4. Match the following:

List – I List – II

I. Responsiveness of demand to change in price 1. Income


elasticity of demand

II. Responsiveness of demand to change in tastes 2. Price elasticity of


demand

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III. Responsiveness of demand to change in income 3. Cross elasticity of
demand

IV. Responsiveness of demand to change in price

of related goods 4. Taste elasticity of


demand

Codes:

I II III IV

(A) 1 2 3 4

(B) 4 3 1 2

(C) 3 4 2 1

(D) 2 4 1 3

5. Opportunity costs are also known as

(A) Spill-over costs

(B) Money costs

(C) Alternative costs

(D) Sunk costs

6. Employees with high self-esteem set

(A) Higher goals for others

(B) Higher goals for themselves and lower goals for others

(C) Higher goals for themselves

(D) None of the above

7. Need for achievement goes with

(A) F.W. Taylor

(B) Hertzberg

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(C) McGregor

(D) McClelland

8. An organizational memory includes the following except

(A) Information that employees possess

(B) Knowledge embedded in the organization‘s systems and structures

(C) Documents

(D) Knowledge that is not documented

9. People should be held accountable for their own behavior, and if holding
people accountable for their own behavior entails capital punishment, then so be
it. However, no person should be held accountable for behavior of others over
which he or she had no control.

Which of the following is the most logical conclusion of the argument above?

(A) People should not be held accountable for the behavior of other people.

(B) People have control over their behavior.

(C) People cannot control the behavior of other people.

(D) Behavior that cannot be controlled should not be punished.

10. Nominal group technique is

(A) a consensus planning tool, generally used by groups to discuss, debate and
decide on issues of strength identification, problems and solutions.

(B) a consensus planning tool to arrive at decisions on issues, for instance man-
power requirement, by involving group of experts through blind rounds of
communication

(C) a majority based decision making tool

(D) None of the above

11. Which pattern reflects a pure executive form of management?

421
(A) Functional

(B) Line

(C) Line and Staff

(D) Committee

12. “A place for everything, everything in its place” is

(A) American Management

(B) 5s Practice

(C) Peter Principle

(D) A Chinese Practice

13. „Appreciative Enquiry‟ is

(A) Psychological Theory

(B) Training Method

(C) Business etiquette

(D) HR Quality

14. Robert Keplan is associated with

(A) A Benchmark Practice

(B) Balanced Score Card

(C) Kaizen

(D) Quality of Life

15. Strategic Intent of an Organization should clearly spell out

(A) Who we are

(B) Where are we going in the long term

(C) How will we measure the performance

(D) All of the above


422
16. In an endeavor to maximize corporate value, a finance manager has to factor
in the following

(A) Optimization Principle

(B) Risk-return Principle

(C) Marginal Principle

(D) All the above

17. The term financial engineering is related to

(A) Cost of production

(B) Financial restructuring

(C) Product planning

(D) Capital issue

18. Value of the merged firm shall be

(A) Less than the acquired firm

(B) More than the acquirer

(C) Greater than the target and the acquirer

(D) None of the above

19. When borrowing is less than equity, the company is said to be

(A) Trading on equity

(B) Trading on thick equity

(C) Trading on thin equity

(D) None of these

20. Match the following:

List – I List – II

(Types of Debt) (Elements)

I. Secured debt 1. Mortgage on Assets

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II. Unsecured debt 2. Non-mortgage on Assets

III. Convertible debt 3. Option

IV. Redeemable debt 4. Payment

Codes:

I II III IV

(A) 1 3 2 4

(B) 2 1 3 4

(C) 3 1 4 2

(D) 1 2 3 4

21. It is a set of procedures and sources used by managers to obtain everyday


information about developments in the marketing environment.
It is known as

(A) Internal Records System

(B) Marketing Intelligence System

(C) Marketing Research System

(D) Marketing Decision Support System

22. Match the List – I with List – II:

List – I List – II

(Stage of the product life cycle) (Marketing strategy applied


in the stage of the product life cycle)

I. Introduction Stage 1. Market Modification

II. Growth Stage 2. Rapid Skimming Strategy

III. Maturity Stage 3. Enter New Market Segments

IV. Decline Stage 4. Continuation Strategy

Codes:

424
I II III IV

(A) 3 2 4 1

(B) 2 3 1 4

(C) 2 3 4 1

(D) 4 2 1 3

23. It has been described as a cluster of complementary goods and services that
are closely related in the minds of consumers but are spread across a diverse set
of industries. It is known as

(A) Market Place

(B) Market Space

(C) Meta-Market

(D) Marketing Mix

24. Company‟s ability to provide individually differentiated product for each


consumer is called as

(A) Digitalization

(B) Disintermediation

(C) Customerization

(D) Connectivity

25. The qualitative value of an exposure through a given medium is related to

(A) Reach

(B) Frequency

(C) Impact

(D) All of the above

26. When work stations are arranged according to the progressive steps by
which the product is produced, it is called a

425
(A) Functional layout

(B) Process layout

(C) Job shop layout

(D) Product layout

27. If for a demand process suited to a = 0.1 we try to fit a forecasting


procedure with a = 0.3, the forecast will

(A) Show large swings up and down

(B) Follow the demand better, consequently reducing forecast errors

(C) Show a pronounced behavior

(D) None of the above

28. CRAFT considers exchanges of locations for those departments which

(A) Have the same area

(B) Have a common border

(C) Either (A) or (B)

(D) Have same costs per unit of distance

29. If the ordering costs are over-estimated by 50 percent and carrying costs are
under-estimated by 50 percent, the total annual cost will exceed the optimum
cost by

(A) 73.2 per cent

(B) 50 per cent

(C) 0 per cent

(D) 150 per cent

30. PERT/CPM network analysis can be used for

(A) Project appraisal

(B) Project implementation

426
(C) Project monitoring and control

(D) All of the above

31. If P (A) =2/3, P (B) =1/2, P (A/B) =1/3, then the value of P(B/A) is

(A) 1/2

(B) 1/3

(C) 1/4

(D) 1/5

32. The level of significance is the probability of committing the

(A) Type I error

(B) Type II error

(C) Standard error

(D) Probable error

33. The two lines of regression are 3x + 2y = 26 and 6x + y = 31 then the mean
of x is

(A) 3 (B) 4

(C) 6 (D) 7

34. For which distribution(s) Mean and Median are equal?

(i) Binomial Distribution;

(ii) Poisson Distribution;

(iii) Exponential Distribution; or

(iv) Normal Distribution

Codes:

(A) (i)

(B) (ii)

(C) (i) & (iii)

427
(D) (ii) & (iv)

35. The type of transmission channel which can transmit data in one direction
only is known as

(A) Simplex

(B) Half Duplex

(C) Full Duplex

(D) Half Simplex

36. Eliminate – reduce – raise – create grid is germane to

(A) Competitive Strategy

(B) Blue Ocean Strategy

(C) Red Ocean Strategy

(D) None of the above

37. Match the following:

List – I List – II

I. Ansoff 1. Case competency

II. C.K. Prahlad 2. Management by


Objectives

III. Peter F. Drucker 3. Cascade Approach

IV. Alfred Chandler 4. Structure follows


Strategy
Codes:

I II III IV

(A) 1 3 2 4

(B) 2 3 1 4

(C) 3 1 2 4

428
(D) 4 2 3 1

38. Growth strategy requires that a firm should

(A) Realign its product market environment

(B) Acquire new firm

(C) Go for new product development

(D) Expand the market

39. Michael Porter‟s five forces model belongs to

(A) Planning School

(B) Positioning School

(C) Cognitive School

(D) Competitive Strategy School

40. The theory of business of an organization is embodied in

(A) Vision

(B) Mission Statement

(C) Objectives

(D) Policies

41. Service Sector is also called

(A) Primary Sector

(B) Secondary Sector

(C) Tertiary Sector

(D) None of the above

42. The definition of Micro, Small and Medium Enterprises (MSMEs) in India
is based on

(A) Total Sales of the Unit

(B) Investment in machines and equipments

429
(C) Market coverage

(D) Export capacity

43. Which one of the following agencies has the power to declare any industrial
unit as a potentially sick unit?

(A) BIFR (B) SIDBI

(C) IRCI (D) FICCI

44. The headquarters of the SIDBI is in

(A) Mumbai

(B) Lucknow

(C) New Delhi

(D) Hyderabad

45. In MSMED Act, 2006, the investment limit for Micro, Small and Medium
Enterprises have been prescribed as

(A) Rs10 lakhs, Rs5 crores and Rs10 crores

(B) Rs5 lakhs, Rs1 crore and Rs10 crores

(C) Rs5 lakhs, Rs1 crore and Rs5 crores

(D) Rs10 lakhs, Rs10 crores and Rs15 crores

46. The study of moral principles or values that determine whether actions are
right or wrong and outcomes are good or bad refers to following:

(A) Quality (B) Ethics

(C) Opinions (D) Controls

47. Match List – I with List – II:

List – IList – II

(Terms relating to Ethics) (Conceptual description of terms relating to


Ethics)

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I. Ethical Climate 1. Each society‟s view of ethics must be
considered legitimate and ethical

II. Ethical Relativism 2. There are basic moral principles that


transcend cultural and political boundaries

III. Ethical Universalism 3. People pick-up subtle hints and clues that
tell them what behavior is approved and what is forbidden.

IV. Ethical Convergence 4. There are growing pressures on international


business to follow the same rules in managing ethical behavior and social
responsibility

Codes:

I II III IV

(A) 3 1 2 4

(B) 1 3 2 4

(C) 1 4 3 2

(D) 4 1 2 3

48. An organization‟s moral obligation toward all of its stakeholders is referred


as following:
(A) Value in workplace

(B) Corporate social responsibility

(C) Ethical behavior

(D) Professionalism

49. is the manager‟s dilemma when he has to decide on the


commercial proposal submitted by his son.

(A) Favouritism

(B) Moral Dilemma

(C) Conflict of Interest

(D) None of the above

431
50. “Make use of paper bags instead of plastic bags.” It is related to

(A) Environmental Ethics

(B) Green Marketing

(C) Socially Responsible Marketing

(D) Social Marketing

432
UGC NET PAPER II JUNE 2011
1. In the case of an inferior commodity, the income elasticity of demand is

(A) Positive (B) Unitary

(C) Negative (D) Infinity

2. The slope of the iso-cost line is determined by

(A) Prices of the two factors

(B) Productivity of the two factors

(C) Degree of substitutability of the two factors

(D) None of these

3. Which one of the following statements is correct or more nearly correct?

(A) An increase in the price of commodity represents a fall in its value

(B) Value has nothing to do with the price

(C) If the price of a commodity falls, its value relative to other goods does not
change

(D) The price of a good is its value measured in terms of money

4. The important macro-economic aggregates are

(A) Aggregate Consumption

(B) Gross Domestic Capital Formation

(C) Gross Domestic Savings and GNP

(D) All of the above

5. Match the following

List – I List – II

I. For a given 10 per cent change in price,

demand changes by zero per cent 1. e > 1

433
II. For a given 10 per cent change in price,

Demand changes by 5 per cent 2. e = 1

III. For a given 10 per cent change in price demand

changes by 10 per cent 3. e < 1

IV. For a given 10 per cent change in

price, demand changes by 20 per cent 4. e = 0

Code:

I II III IV

(A) 3 1 2 4

(B) 4 3 2 1

(C) 1 2 3 4

(D) 2 3 1 4

6. Long – lasting beliefs about what is important in a variety of situations, that


guide our decisions and actions are:
(A) Values

(B) Ethical dimensions

(C) Priorities

(D) Desires

7. Figure – Ground Theory explains the process of

(A) Cognition (B) Sensation

(C) Perception (D) Motivation

8. Successive re-inforcements resulting in desired behavior are

(A) Mentoring

(B) Motivation

(C) Shaping

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(D) behavior-modification

9. Psychological contract is related to

(A) Job – person fit

(B) Role – person fit

(C) Organization – person fit

(D) None of the above

10. Equity is called as

(A) Equality of all

(B) Standard performance

(C) Comparative sense of justice to self

(D) None of the above

11. The distinction between „job enrichment‟ and „job enlargement‟ is

(A) Semantics

(B) ‗Job enrichment‘ is vertical loading while ‗job enlargement‘ is horizontal


loading

(C) ‗Job enrichment‘ is the outgrowth of Hertzberg‘s theory while ‗job


enlargement‘ is of Maslow‘s orientation.

(D) ‗Job enrichment‘ is more for the individual and the other is more of
organization making

12. In „delegation‟

(A) Only authority is delegated not responsibility

(B) Both authority and responsibility are delegated

(C) Only responsibility is delegated, not authority

(D) Neither responsibility, nor authority is delegated

435
13. Cross-functional groups that operate across space, time and organizational
boundaries with members who communicate mainly through information
technologies are

(A) Telecomputers

(B) Virtual teams

(C) Teleworkers

(D) Telemarketers

14. Career resilience means

(A) Ability to switch careers

(B) Ability to remain with same competencies refining suitably for


organizations

(C) Lack of capacity to remain in career

(D) None of the above

15. Lock out means

(A) An antithesis of strike

(B) Refusal to employ any person in employment

(C) the temporary closing of a place of employment

(D) Illegal strike

16. Which is the task of a finance manager?

(A) Investment decision

(B) Dividend decision

(C) Management of income

(D) All of the above

17. Which method of capital budgeting focuses on liquidity of a project?

(A) Net present value

436
(B) Profitability index

(C) Payback period

(D) Internal rate of returns

18. Which statement is true about deep discount bonds?

(A) These are in the form of low interest bonds

(B) These bonds are sold at a discounted value and on maturity face value of the
bond is paid to the investors

(C) There is no interest payout during lock-in period

(D) None of the above

19. Financial leverage is

(A) EBIT × 100

Sales

(B) EBIT

EBT

(C) Sales

Fixed Assets

(D) Profit × Capital

Sales

20. Match the following

List–I (items / method) List – II (used / Application)

I. Rate of return method 1. Capital budgeting

II. Purchase consideration 2. Merger

III. Diminishing Balance Method 3. Depreciation

IV. Fifo Method 4. Stock valuation

Code:

437
I II III IV

(A) 1 3 2 4

(B) 3 2 4 1

(C) 1 2 3 4

(D) 1 4 3 2

21. Arrange the following steps of a five-stage model of the consumer buying
process:

I. Evaluation of Alternatives

II. Need Arousal

III. Information search

IV. Purchase Decision

V. Post Purchase behavior

Code

(A) IV, II, III, I, V

(B) III, II, I, IV, V

(C) I, II, IV, III, V

(D) II, III, I, IV, V

22. It refers to the total number of items in the Product Mix. It is known as
following.

(A) The width of product mix

(B) The length of product mix

(C) The depth of product mix

(D) The consistency of product mix

23. Given below are two statements, one labeled as Assertion (A), and the other
labeled as Reason (R). State the correct answer from code given below.

438
Assertion (A): Pure-click companies can be search engines, Internet service providers,
commerce sites, transaction sites, content sites and enabler sites.

Reason (R) : Pure-click companies are those companies that have launched a
website without any previous existence as a firm.

Code:

(A) (A) is correct, but (R) is wrong.

(B) Both (A) and (R) are correct.

(C) (A) is wrong, but (R) is correct.

(D) Both (A) and (R) are wrong.

24. Match List-I and List-II.

List – I List – II

(Characteristics of Services) (Marketing Strategy applied


considering a characteristic of service)

I. Intangibility 1. Preparing a service blue print showing


each service and process in a flow chart.

II. Inseparability 2. Tangiblize the intangible

III. Variability 3. To train more service providers and


build up client confidence.

IV. Perishability 4. Use differential pricing

Code:

I II III IV

(A) 2 1 3 4

(B) 2 3 1 4

(C) 1 3 2 4

(D) 2 1 4 3

439
25. A diverse collection of incentive tools designed to stimulate quicker buying
of a particular product or service by consumers or the trade is known as

(A) Advertising

(B) Personal selling

(C) Publicity

(D) Sales promotion

26. Which of the following departments is not directly affected by the facilities
location decision?

(A) Production / operations

(B) Marketing

(C) Personnel

(D) Finance

27. Ship building and construction of dams and bridges are typical examples of

(A) Fixed position layout

(B) Functional layout

(C) Product layout

(D) Project type layout

28. If unit item cost = Rs10, monthly carrying charge = 3 per cent, monthly
demand = 100 units and ordering cost = Rs20 per order, the EOQ is:

(A) 11.45

(B) 400

(C) 115.4

(D) 33.3

29. In managing a project, a network is better suited than Gantt chart because

440
(A) It can be updated more easily

(B) It clearly brings out the interdependencies between the different activities

(C) Both (A) and (B)

(D) None of the above

30. The aggregate production plan spans

(A) Short time horizon

(B) Intermediate time horizon

(C) Long time horizon

(D) None of the above

31. The probability that a contractor will get a plumbing contract is 2/3 and that
he will get an electric contract is 4/9. If the probability of his getting at least one
of the two contracts is 4/5, then the probability that he will get both contracts is

(A) 10/45

(B) 8/27

(C) 14/45

(D) 26/45

32. If a random variable X follows Poisson distribution such that P(X = 1) =


P(X = 2), then the mean of the distribution is

(A) 1 (B) 2

(C) 3 (D) 4

33. The value of R1.23 lies between

(A) –1 and +1

(B) –1 and 0.0

(C) 0.0 and +1

(D) – 0.5 and + 0.5

441
34. A source programme is

(A) a programme written in machine language

(B) a programme to be translated into machine language

(C) the machine language translation of a programme written in high-level


language

(D) none of the above

35. Processing data in groups collected over periods of time is known as

(A) Time - sharing

(B) Batch processing

(C) Real – time processing

(D) Multi – processing

36. “We must forget to learn and learn forgetting” is ascribed to

(A) Tom Peters

(B) Peter F. Drucker

(C) Abraham S. Maslow

(D) Garry Hamel

37. In highly competitive environment an organization to achieve sustained


success should be

(A) Better

(B) Bigger

(C) Resilient

(D) None of the above

38. Corporate governance is about

(A) Crafting the strategy

(B) Compliance with regulatory regime

442
(C) Satisfying the stakeholders

(D) Governing the company in the interest of government in power

39. Strategic planning is about

(A) Strategic thinking

(B) Strategic programming

(C) Tactical Planning

(D) Portfolio Planning

40. If two or more companies are merged and only one of them survives while
others loose their independent entity, it is referred to as

(A) Merger

(B) Absorption

(C) Amalgamation

(D) Combination

41. The MSMED Act, 2006 classified enterprises broadly into

(A) Two categories

(i) Manufacturing enterprises and

(ii) Service enterprises

(B) Three categories

(i) Micro enterprises

(ii) Small enterprises

(iii) Medium enterprises

(C) Four categories

(i) Micro enterprises

(ii) Small enterprises

(iii) Tiny enterprises

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(iv) Medium enterprises

(D) Four categories

(i) Tiny enterprises

(ii) Micro enterprises

(iii) Small business enterprises

(iv) Medium enterprises

42. Which sector is called as Primary Sector in India?

(A) Industrial sector

(B) Service sector

(C) External sector

(D) Agricultural sector

43. How many times the census of registered Micro, small and medium
Enterprises (MSMEs) have been made by Small Industries Development
Organization (SIDO)?

(A) 1

(B) 2

(C) 3

(D) 4

44. EDII is situated at

(A) New Delhi

(B) Ahmedabad

(C) Patna

(D) Kolkata

45. Industrial Policy of which year contained for the very first time a special
thrust on measures for promoting and strengthening small tiny and village
enterprises

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(A) 1956

(B) 1991

(C) 1948

(D) 1977

46. Members of organizations are increasingly finding themselves facing


situations in which they are required to define right and wrong conduct. It is
most aptly called as following

(A) Environmental issues of ethics

(B) Social responsibilities of business

(C) Corporate governance & ethics

(D) Ethical Dilemmas of business

47. Situations in which individuals are required to define right and wrong
conduct to be complied with are called as following

(A) Ethical climate

(B) Ethical dilemmas

(C) Code of Ethics

(D) None of the above

48. Arrange the following steps of a simple ethics programme

I. Walk the talk

II. Size up your company‘s current ethics

III. Train your people

IV. Solicit feedback from your employees

V. Create a code of conduct

Code:

(A) V, I, IV, II, III

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(B) II, V, IV, III, I

(C) II, V, III, IV, I

(D) II, IV, III, II, I

49. Who is involved in „Shoplifting‟ from the following?

(A) Producer

(B) Seller

(C) Consumer & or a customer

(D) None of the above

50. Match List-I with List-II.

List – IList – II

(Ethical Issue) (Stakeholder affected)

I. Unsafe working conditions 1. Customers

II. Product safety 2. Society

III. Environmental Pollution 3. Employees

IV. Following local laws 4. Host Country

Code:

I II III IV

(A) 2 4 3 1

(B) 3 1 2 4

(C) 1 3 4 2

(D) 3 2 1 4

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UGC NET PAPER II DECEMBER 2010
1. Under perfect competition in the long run

(A) All firms earn normal profits

(B) Few firms earn super normal profits

(C) All firms are at break even

(D) None of the above

2. National Income at market prices is equal to

(A) Gross national product at market prices

(B) Gross domestic product at market prices

(C) Net national product at factor cost

(D) None of the above

3. If there is a single buyer, it is called

(A) Monopoly

(B) Oligopoly

(C) Monopsony

(D) None of the above

4. Under which of the following method the time value of money is not
considered?

(A) Net present value method

(B) Internal rate of return method

(C) Payback period method

(D) All of the above

5. A firm is having increasing returns to scale means

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(A) It is having increasing costs.

(B) It is having constant costs.

(C) It is having decreasing costs.

(D) None of the above

6. Production can be measured in terms of which of the following?

(A) Total productivity

(B) Marginal productivity

(C) Average productivity

(D) All of the above

7. Which of the following is an objective of human resource management?

(A) Productivity

(B) Quality of work life

(C) Organizational change

(D) All the above

8. Motivation implies that the employees in an organization

(A) Exert more effort to accomplish the desired goals of the organization.

(B) Exert more effort to accomplish the individual goals.

(C) Exert more effort to accomplish the common goals of employees.

(D) Exert more effort to accomplish the desired goals of the employer,
employees and the Government.

9. Communication can be

(A) Oral

(B) Written

(C) Oral and Written


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(D) None of the above

10. Which of the following is not considered as a leadership style?

(A) Task oriented leadership style.

(B) Society oriented leadership style.

(C) Employee oriented leadership style.

(D) Autocratic leadership style

11. Which of the following method has not been given a statutory form in
India?

(A) Conciliation

(B) Mediation

(C) Voluntary Arbitration

(D) Adjudication

12. What are the operative functions of HRM?

(A) Organizing

(B) Directing

(C) Controlling

(D) All of the above

13. Which one is not a performance appraisal method?

(A) 360° performance appraisal

(B) Balanced score card

(C) Rank method

(D) Interview method

14. Selection of persons in an organization is the responsibility of

(A) Security Dept.


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(B) Personnel Dept.

(C) Trade Unions

(D) Canteen Dept.

15. Labor Welfare facilities were incorporated in which legislation?

(A) MRTP Act

(B) Essential Commodities Act

(C) Consumer Protection Act

(D) Factories Act

16. Job analysis involves

(A) Job description and job specification

(B) Job order and job description

(C) Job specification and job order

(D) Job satisfaction and job description

17. Which one of the following represents number of years required to recover
the initial investment?

(A) Accounting rate of return

(B) Payback period

(C) Internal rate of return

(D) Net present value

18. Other things being equal, stocks which are highly liquid command

(A) Higher dividend payout ratio

(B) Lower dividend payout ratio

(C) Higher P/E multiples

(D) Lower P/E multiples


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19. Weighted Average Cost of Capital may contain

I. Cost of Equity

II. Cost of Debt

III. Cost of goods purchased

IV. Cost of initial investment

Find the correct combination according to the code:

(A) I, II & III are correct.

(B) II, III & IV are correct.

(C) III & IV are correct.

(D) I & II are correct

20. Long term sources of finance may contain

I. Retained earnings

II. Inter corporate deposits

III. Debentures

IV. Preference share capital

Find the correct combination according to the code:

(A) I, III & IV are correct

(B) II, III & IV are correct

(C) II & III are correct

(D) II & IV are correct

21. When a firm proposes to acquire another firm, the merger proposal may be
viewed as a

(A) Working capital management proposal

(B) Capital budgeting proposal


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(C) Financing decision

(D) Dividend decision

22. Which of the following is not the element of promotion-mix?

(A) Advertising

(B) Place

(C) Personal selling

(D) Publicity

23. Which of the following is in correct order?

(A) Product, Place, Promotion and Price

(B) Product, Promotion, Place and Price

(C) Product, Price, Promotion and Place

(D) Product, Price, Place and Promotion

24. Which of the demographic variables is not used by marketers for


demographic segmentation?

(A) Gender (B) Age

(C) Occupation (D) Poverty

25. At which stage of the new product development, the launching of new
product will take place

(A) Business Analysis

(B) Test Marketing

(C) Commercialization

(D) Marketing strategy Development

26. If a company uses its company name for its entire range of products offered,
then it is called

(A) Private branding


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(B) Corporate branding

(C) Product-line branding

(D) Specific product branding

27. One-level channel of distribution consists of

(A) Producer – consumer

(B) Producer – dealer – consumer

(C) Producer – dealer – retailer – consumer

(D) Producer – dealer – wholesaler – retailer – consumer

28. The primary role of a production manager is

(A) To meet the production target and delivery schedule

(B) To produce goods/services of right quality

(C) To produce goods/services by right quantity at the predetermined time

(D) All of the above

29. Fixed Position Layout is used when

(A) The operation requires heavy tools and equipments.

(B) The operation requires only hand tools and simple equipments.

(C) The continuity of production process is to be maintained.

(D) None of the above

30. Critical Path Method (CPM) is concerned with estimation of

(A) Optimistic time

(B) Production lead time

(C) Pessimistic time

(D) None of the above

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31. In a normal distribution, mean (m) ± 3s (3 standard deviation) limits
contains approximately

(A) 99.73% of the observations

(B) 99.27% of the observations

(C) 96% of the observations

(D) 95% of the observations

32. Firms choose a focus strategy to serve the needs of which of the following?

(A) Buyers group

(B) Different-segment of a product line

(C) Different geographical market

(D) All of the above

33. Which of the following is not the component of work study?

(A) Work measurement

(B) Case study

(C) Time study

(D) Motion study

34. Half percent of the letters mailed in a city have incorrect addresses. Out of
200 such letters mailed in a day, the probability of finding at most 3 incorrect
addresses is

(A) 3e/8

(B) 8/3 e–1

(C) 1/ 6 e–1

(D) 5/ 2 e–1

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35. If X is a random variable normally distributed with mean u and variance
σ2, then the mean deviation about mean is given by

(A) 1/√2π

(B) √2/π

(C) σ / 2π

(D) √2σ

36. The level of significance is the probability of committing

(A) Type I error

(B) Type II error

(C) Standard error

(D) Probable error

37. Which of the following tests is used to test a hypothesis about the mean of a
univariate normal distribution with unknown variance?

(A) Normal test

(B) Student‘s test

(C) Paired t-test

(D) Chi-square test

38. Mean and variance of Binomial Distribution are

(A) m and σ2 (B) m and nq

(C) m and np(D) np and npq

(Where the terms have usual statistical meaning)

39. Which of the following is the characteristic of a strategic business unit?

(A) It serves a homogenous set of markets.

(B) It serves a unique set of products.

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(C) It owns responsibility for its own profitability.

(D) All of the above.

40. Which one of the following is not a generic strategy?

(A) Cost Leadership

(B) Product Differentiation

(C) Cost focus

(D) Group focus

41. A retrenchment strategy is designed to reduce

(A) Technical losses

(B) Financial losses

(C) The scale and scope of the business operation

(D) all of the above

42. World Trade Organization provides

(A) Rule based multilateral trading system.

(B) Equity and social justice to the people.

(C) Rule based regional trading system

(D) All of the above

43. Sick enterprise is referred to

(A) CII (B) RBI

(C) SIDBI (D) BIFR

44. Ethical values are derived from

(A) Corporate philosophy

(B) Organizational culture

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(C) Corporate objectives

(D) The religious books

45. Which of the following is not related to business ethics?

(A) Social responsibility of business

(B) Environmental ethics

(C) Ecological consciousness

(D) Profiteering

46. Which of the following is the cause of sickness of an enterprise?

(A) Lack of adequate capital

(B) Lack of demand for the products

(C) Lack of raw material

(D) All of the above

47. Value driven companies are

(A) Sure to be successful in the long run.

(B) Sure to be unsuccessful as they are not maximizing profits.

(C) Sure to become charitable institutions.

(D) None of the above

48. Which of the following is not a tool of corporate governance?

(A) Preparation of financial statements

(B) Appointment of independent directors.

(C) Compulsory audit of financial statements.

(D) Time bound promotion of employees.

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49. Which of the following is not the social responsibility of the business?

(A) Promotion of Markets

(B) Promotion of Green Environment

(C) Promotion of Education

(D) Promotion of Public Health

50. The Business Code of Conduct provides guidance to managers and


employees

(A) When they encounter an ethical dilemma.

(B) For improving their technical skills.

(C) For pursuing their business goals.

(D) All of the above

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UGC NET PAPER II JUNE 2010
1. During last five years per capita income of India is increasing, that means

(A) National income growth of India is more than growth of population.

(B) Growth in population is more than the growth in National income of India.

(C) National income of India & population of India have grown at the uniform
rate.

(D) All of the above

2. In the short run firm considers the minimum of its average variable cost
curve as

(A) Break-even point

(B) Shutdown point

(C) Economies of scope

(D) None of the above

3. The positive cross elasticity of demand between two products means

(A) Two products are substitutes

(B) Two products are complementary

(C) Two products are neither substitutes nor complementary

(D) None of the above

4. A monopolist always operates in the

(A) Inelastic segment of its demand curve

(B) Elastic segment of its demand curve

(C) Unitary elastic segment of its demand curve

(D) None of the above

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5. The price elasticity of demand for any product in the long run

(A) Is more than its short run value.

(B) Is less than its short run value.

(C) is same as its short run value.

(D) None of the above.

6. Earnings foregone in the context of the best alternative is termed as

(A) Past cost

(B) Historical cost

(C) Opportunity cost

(D) Sunk cost

7. A situation where management is unable to provide employment due to non-


availability of work is called

I. Lock out

II. Lay off

III. Termination

IV. Closure

Find the correct combination according to the code.

(A) I & II (B) II & III

(C) I & III (D) II & IV

8. Which one of the settlement methods is not relevant here for disputes?

(A) Collective Bargaining

(B) Compulsory Adjudication

(C) Voluntary Arbitration

(D) Reference to Civil Court


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9. Which of the following shows a situation of Trade Union rivalries in India?

(A) Different Unions in different organizations.

(B) More unions in the same organization having affiliation with different
political parties and representing the same type of workers.

(C) More unions in the same organization all representing different types of
workers.

(D) None of the above

10. Reduction of Labor Force is called

(A) Termination

(B) Retrenchment

(C) Lay-off

(D) Right sizing

11. The process of establishing the value of jobs in a job hierarchy is known as

(I) Job analysis

(II) Job requirement

(III) Job evaluation

(IV) Performance evaluation

Find the correct combination according to the code.

(A) I & II (B) II & III

(C) III & IV (D) I & IV

12. Which of the following is the meaning of Human Resource Planning?

(A) Evaluation of job

(B) Satisfaction of the employees on the job

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(C) Appraising the performance of employees

(D) It is the process by which an organization ensures that it has the right
number and kind of people at the right place, at the right time.

13. Induction refers to

(A) Giving training to the employees.

(B) Giving incentive to the employees.

(C) Introducing employees to the organization culture and situation.

(D) Increasing the morale of the employees.

14. Which of the following is not a fringe benefit?

(A) Transport

(B) Subsidized canteen facilities

(C) Free education to the children

(D) Dearness Allowance

15. „X‟ and „Y‟ theory was prepared by

(A) Herzberg

(B) Maslow

(C) Porter and Lawler

(D) McGregor

16. Which of the following formula is used to calculate Pay Back Period when
cash inflows are constant?

(A) Fixed Assets/Current Assets

(B) Fixed Assets/Current Liabilities

(C) Initial Investment cost/Annual cash inflows

(D) None of the above

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17. The P/E ratio approach to stock valuation is also known as

(A) Earnings multiplier approach

(B) Dividend discounting approach

(C) Required rate of return

(D) None of the above

18. The capital structure theories which argue that capital structure is relevant
to the value of firm contain

I. Net Income Approach

II. Net Operating Income Approach

III. Traditional Approach

IV. Modigliani and Miller Approach

Find the correct combination according to the code:

(A) I & II are correct.

(B) I & III are correct.

(C) III & IV are correct.

(D) II & IV are correct.

19. Short term financing instruments may contain

I. Commercial Paper

II. Public Deposits

III. Term Loans

IV. Trade Credit

Find the correct combination according to the code.

(A) I, II & III are correct.

(B) II, III & IV are correct.


463
(C) III & IV are correct.

(D) I, II & IV are correct.

20. For calculating weighted average cost of capital, cost of each source of
capital is multiplied by proportion applicable to it. The proportions may be
based on

(A) Book values only

(B) Target capital structure only

(C) Market values only

(D) All of the above

21. Which of the following is not included in 7 P‟s of services marketing?

(A) Process (B) People

(C) Pricing (D) Public relations

22. Which of the following is not a stage in the new product development?

(A) Generation of ideas

(B) Business analysis

(C) Market segmentation

(D) Test marketing

23. Industrial marketing involves

(A) Business to Business

(B) Business to Customer

(C) Customer to Customer

(D) Retailer to Consumer

24. The concept of Marketing Myopia is propounded by

(A) Philip Kotler

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(B) C.K. Prahalada

(C) Peter Drucker

(D) Theodore Levitt

25. In which stage of product life cycle, the company takes decision whether to
maintain, harvest or drop the product?

(A) Introduction (B) Growth

(C) Maturity (D) Decline

26. Which of the following is the best technique to manage the existing
products?

(A) Ansoff Matrix

(B) Balanced score card

(C) BCG Matrix

(D) Product life cycle analysis

27. Which of the following is not an element of production management?

(A) Plant (B) Profit

(C) Process (D) People

28. Production Management Tactical Planning decisions include

(A) Establishing parameters for measuring operational efficiency and


productivity.

(B) Establishing quality specifications and test details.

(C) Determining starting and finishing time of each job in the work stations.

(D) None of the above

29. Work study refers to

(A) Analysis of work into smaller parts followed by re-arrangement of these


parts to give the same effectiveness at lesser cost.

465
(B) Analytical investigation of the methods involved in the work.

(C) Developing new methods to give work effectiveness.

(D) All of the above

30. Economic lot size is known as

(A) The lot size for which the total cost per time period is minimum.

(B) The ordering cost and carrying cost are minimum.

(C) The lot size that strikes a balance between ordering cost and carrying cost.

(D) The quantity to be ordered each time is fixed.

31. Objective of Value Engineering is

(A) Reduce cost without reducing the quality.

(B) Increase value without increasing the cost.

(C) Reduce cost by reducing the quality.

(D) None of the above

32. If the independent variates x I (i = 1, 2, …..n) are normally distributed about


a common mean, a, with a common variance, σ2, their mean is also normally
distributed about a, but with a variance

(A) nσ2
(B) σ2n
(C) (σ2)n
(D) σn/2

33. The weak law of large numbers is another version of

(A) Convergence in probability

(B) Random number generation

(C) Financial probability law

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(D) Poisson probability law

34. The basic assumptions underlying the t-test for the difference of two
sample means are that the parent populations are and
population variances are

(A) Of any shape; equal and known

(B) Normal; equal and known

(C) Normal; equal but unknown

(D) Normal; unequal but known

35. LAN stands for

(A) Large Area Network

(B) Local Area Network

(C) Long Accurate Network

(D) Lay Access Network

36. If X is normally distributed with mean 30 and s.d. 5 and φ (x) denotes: - 1 ʃ
e -1/2 t² dt then P (26<X<40) and P (X > 45) given by:- √2π

(a) Φ (.8) + φ (.2) and φ(3) -1/2

(b) Φ (2) - φ (.8) and 1/2 -φ(3)

(c) Φ (2) - φ (.8) and 1/2 +φ(3)

(d) Φ (2) + φ (.8) and 1/2 φ(3)

37. What enables the management to find out whether the strategic
management process are appropriate, compatible and functioning in the
desirable direction?

(A) Implementation control

(B) Special alert control

(C) Premise control

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(D) Strategic control

38. Which one is not the part of Michael Porter‟s five forces model?

(A) Threat of substitutes

(B) Firm‘s core competence

(C) Rivalry among existing players

(D) Threat of new entrants

39. Which of the following strategy is regarded unfair?

(A) Collusion

(B) Strategic alliance

(C) Differentiation

(D) Turnaround strategy

40. Which of the following relationship strategies result into forming of a new
organization?

(A) Strategic alliance

(B) Partnership

(C) Joint venture

(D) None of the above

41. A growth strategy is designed to increase

(A) The scale and scope of the Business operations.

(B) The corporate image of the business.

(C) Corporate social responsibility of business.

(D) None of the above.

42. Cost leadership strategy is related to

(A) Functional strategy


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(B) SBU strategy

(C) Corporate strategy

(D) Global strategy

43. Countries derive their competitive advantage in international trade through


their

(A) Comparative cost advantage

(B) Contribution to the World trade

(C) Natural endowments

(D) All of the above

44. Which analysis helps to understand the strength and weaknesses of a firm?

(A) Environment analysis

(B) Business analysis

(C) SWOT analysis

(D) None of the above

45. Which one of the following is not the social responsibility of business?

(A) Adopting village for development.

(B) Providing drinking water and medical facilities in remote villages.

(C) Construction of Temples.

(D) Opening in House R & D department.

46. What is the acronym for SIDBI?

(A) Short Investment Development Bank of India.

(B) Stock Investment Development Bank of India.

(C) Small Investment Development Bank of India.

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(D) Small Industries Development Bank of India.

47. Identify from the options given below, which one is not a source of
business ethics?

(A) Religion

(B) Legal system

(C) Culture

(D) Political system

48. Where law fails,

(A) Ethics also fails

(B) Ethics can succeed

(C) Government can protect

(D) None of the above

49. Which one of the options is not an ethical issue for an organization?

(A) Save water

(B) Save energy

(C) Save money

(D) Respect woman

50. Which of the following is an example of an external threat?

(A) Economies of scale

(B) Decreased competition

(C) New Trade Regulations

(D) Global sales potential

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UGC NET PAPER II DECEMBER 2009
1. The elasticity of demand indicates

(A) The rate of response of demand to a change in price.

(B) The rate of change of demand to a change in income.

(C) The change in the tastes of consumers at different prices.

(D) The rate of response of demand to a change in supply.

2. A rightward shift in supply curve indicates

(A) A decrease in supply

(B) An increase in quantity demanded

(C) An increase in supply

(D) Law of variable proportion

3. Which of the following is the condition of equilibrium for the


monopolist?

(A) MR = MC (C) AR = MC = Price

(B) MC = AR (D) AC = AR

4. If the demand curve is a rectangular hyperbola, elasticity is

(A) 1 (C) infinity

(B) 0 (D) less than one

5. If both supply and demand increase by the same proportion,

(A) Quantity remains constant (C) Price increases

(B) Price remains constant (D) Quantity increases

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6. What leads to rationing and black marketing under perfect competition?

(A) Price support (C) Decrease in supply

(B) Excess demand (D) Price control

7. In Maslow‟s need hierarchy theory, which of the following is not high order
needs?

(A) Safety (C) Esteem

(B) Social (D) Self-Actualization

8. Feeling arising out of inadequate definition of roles is known as

(A) Role ambiguity (C) Role perception

(B) Role conflict (D) Role expectation

9. A type of group discussion process in which members of the group are


encouraged to generate as many imaginative and creative ideas in a relatively
short period of time is known as

(A) Brain storming (C) Simulation

(B) Group working (D) Group effect

10. The amount of satisfaction an individual anticipates from a particular


outcome is known as

(A) Theory Y (C) Valence

(B) Theory Z (D) Stress

11. A personality characteristic indicating one‟s willingness to do whatever it


takes to get one‟s own way is known as

(A) Locus of control (C) Job characteristic model

(B) Machiavellism (D) Personality legitimacy

12. The process of studying and collecting information relating to a specific job
is known as

(A) Motion study (C) Job specification

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(B) Job analysis (D) Job enrichment

13. The horizontal expansion of jobs is termed as

(A) Job enlargement (C) Job sharing

(B) Job enrichment (D) Job involvement

14. A bargaining which is based upon zero-sum game is known as

(A) Integrative bargaining (C) Distributive bargaining

(B) Principled bargaining (D) None of these

15. The final link in the communication process that puts the message back into
the system as a check against misunderstandings is described as

(A) Decoding (C) Feedback Loop

(B) Feedback (D) None of these

16. In the „Managerial grid‟ 9, 1 style is termed as

(A) Team Management (C) Authority Obedience

(B) Country Club Management (D) Improvised Management

17. Which of the following is not one of the 5s of housekeeping?

(A) Sort (C) Specialize

(B) Systemize (D) Shine

18. Internal rate of return method applied for capital budgeting decision

(A) Allows to take different discount factors.

(B) Uses cost of capital as discount factor.

(C) May give more than one IRR.

(D) Distinguishes between the IRR for lending and borrowing decision.

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19. Beta in the context of security analysis indicates

(A) Systematic risk (C) Total risk

(B) Unsystematic risk (D) All of the above

20. Assuming constant rate of growth of dividend, value of share will be equal
to

(A) Po = Do/r – g (C) P1 = Do/r + g

(B) P0 = D1/r – g (D) P1 = D0 + g

21. Theoretically, with the issue of rights share the value of existing shares

(A) Will increase (C) will reduce

(B) Will not change (D) May increase or decrease

22. When the cash flow outcomes of succeeding period depends on what has
happened before, the probabilities of succeeding period are known as

(A) Joint probabilities (C) simple probabilities

(B) Conditional probabilities (D) decision tree

23. A high risk, high-yield often unsecured bond rated below investment grade
is known as

(A) Income-bond (C) Junk bond

(B) Subordinated debentures (D) Serial bond

24. Who coined the term 4 Ps?

(A) Philip Kotler (C) Peter Drucker

(B) Stanton (D) McCarthy

25. In the buying decision process, what is the term used for a person who first
suggests buying the product?

(A) Consumer (C) Initiator

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(B) Decider (D) Influencer

26. Which of the following is in order?

(A) Product, place, price and promotion.

(B) Price, product, promotion and place.

(C) Promotion, place, product and price.

(D) Product, price, place and promotion.

27. Which of the demographic variable is not used by marketers for


demographic segmentation?

(A) Income (C) Family life cycle

(B) Gender (D) Poverty

28. Which of the following indicates the distinction between Advertising and
Publicity?

(A) Advertising is expensive, publicity is less expensive.

(B) Advertising is through T.V., publicity is through print media.

(C) Advertising is a paid form of communication; Publicity is not a paid form of


communication.

(D) Advertising is through film stars, Publicity is through cricketers.

29. Which of the following order about product life cycle is correct?

(A) Introduction, Maturity, growth and decline.

(B) Introduction, growth, maturity and decline.

(C) Introduction, decline, maturity and growth.

(D) Growth, maturity, decline and introduction.

30. Companies that attack other firms including market leader in an attempt to
build market share are called

(A) Market followers (C) Market penetrators

(B) Market challengers (D) Market Nichers

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31. Tactical production planning decision includes

(A) Layout planning (C) Production process

(B) Machine loading (D) Plant location

32. Which of the following is not to be considered for plant location decision?

(A) Availability of labor (C) Availability of raw material

(B) Availability of power (D) Brand image

33. Moving average forecasting is used to

(A) Establish the trend of the past

(B) Forecast the current demand

(C) Forecast market competition

(D) Forecast Quasi demand

34. Work measurement is essential for

(A) Labor utilization and efficiency

(B) Determining the delivery dates

(C) Introducing financial incentive schemes

(D) All of the above

35. E O Q refers to the quantity for which

(A) Fixed cost is equal to variable cost

(B) Carrying cost is equal to ordering cost

(C) Average cost is equal to marginal revenue

(D) Total contribution minus cost of goods

36. A company is producing steel rods. Assuming that the length of steel rods
follows normal distribution with mean 10 inches & variance equal to
0.04 sq. inches. The standard error of mean, when a random sample of 16 is
taken, will be

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(A) 4/10 (C) 2/40

(B) 2/20 (D) None of these

37. Judgment sampling to select the sampling units from population is termed
as

(A) Probability sampling (C) Systematic sampling

(B) Non-probability sampling (D) None of these

38. Wide area network is

(A) Network of computers spread over a small geographical area.

(B) Network of computers spread over a large geographical area.

(C) Network of computers in a room.

(D) None of these.

39. Correlation coefficient between two variables X & Y is calculated as


0.63. If the measurements of X & Y are changed to U = X – 10 & V = Y + 5 the
new value of correlation coefficient will be

(A) 0.063 (C) 0.63

(B) 0.315 (D) None of these

40. A person appears in an interview for a job in the two companies say X and
Y. The chances of selection in company X is 0.7 and chances of selection in Y
is 0.6. The probability of his selection in either of the two companies will be

(A) 0.42 (C) 0.50

(B) 0.88 (D) None of these

41. Which of the following helps a manager to identify the opportunities and
threats in the competitive industry environment?

(A) Analysis of organizational structure.

(B) Analysis of competitive forces.

(C) Analysis of operations.

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(D) Market Research

42. Essence of strategy at strategic Business Unit level is

(A) How to build core competency

(B) How to gain competitive advantage

(C) How to gain market share

(D) All of the above

43. Which one of the following is a primary activity in a value chain?

(A) Operations (C) Technology development

(B) Firm infrastructure (D) Procurement

44. Business unit which holds a large market share in a mature and slow
growing industry is called
(A) Star (C) Question Mark

(B) Dog (D) Cash cow

45. Which strategy requires a company to concentrate its efforts in one or more
narrow segments instead of broad based strategy?

(A) Cost leadership (C) Differentiation

(B) Focus (D) None of the above

46. Which of the following is an example of an external threat?

(A) New trade regulations (C) Economies of scale

(B) Global sales potential (D) Decreased competition

47. Which of the following has been entrusted with the responsibility of
developing and supporting small business?

(A) IDBI (C) NABARD

(B) RBI (D) SIDBI

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48. “Innovation and entrepreneurship” is a book written by

(A) Philip Kotler (C) PradeepKhandwala

(B) C. K. Prahlad(D) Peter F. Drucker

49. Strategizing within value frame work is an approach of

(A) Management (C) Governance

(B) Administration (D) Stake holders

50. Social responsibility means that a business

(A) Functions efficiently without harming the society

(B) Abjures the profit motive

(C) Keeps pollution under check

(D) Pays its Taxes to Government

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UGC NET PAPER II JUNE 2009
1. Price elasticity of demand is best defined as:

(A) The change in the tastes of consumers at different prices

(B) The rate of response of demand to a change in supply

(C) The rate of response of demand to a change in price

(D) The rate of change of demand to a change in price

2. Giffen goods are those goods:

(A) For which demand increases as price increases

(B) Which are in short supply

(C) Which have high income elasticity of demand

(D) Which give rise to a decrease in demand

3. The situation where the market consists of only two buyers, then it is called:

(A) Monopsony

(B) Duopsony

(C) Monopoly

(D) Duopoly

4. In India, which method is used to measure National Income in service


sector?

(A) Expenditure method (C) Output method

(B) Income method (D) Value added method

5. Short run cost curves are influenced by:

(A) Principles of return to scale (C) Law of variable proportion

(B) Economies of scale (D) Diseconomies of scale

6. The term opportunity cost refers to:

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(A) Variable cost

(B) Short run cost

(C) Cost of one product in terms of production of others forgone

(D) Cost related to an optimum level of production

7. Which of the following is not one of the ego states of transactional analysis?

(A) Child (C) Adult

(B) Young (D) Parents

8. Where anchors are illustrations that help to define as superior, average or


below average, the behavior of the employee, the rating scale is known as:

(A) Behavioral expectation scale (C) Forced choice description

(B) Behavioral observation scale (D) Grading scale

9. In the decision tree model of vroom and yetton the style when the leader
shares the problem with subordinates as a group, obtains collective ideas, and
then makes the decision is identified as:

(A) A I (B) A I I (C) C I (D) C I I

10. Leaders who provide individualized consideration and intellectual


stimulation and who possess charisma is known as:

(A) Transactional Leaders (C) Situational Leaders

(B) Transformational Leaders (D) Visionary Leaders

11. The drive to become what one is capable of becoming is:

(A) Self-Awareness (C) Self-Efficiency

(B) Self-Actualization (D) Self-Esteem

12. Which of the following is not one of the career anchors?

(A) Managerial competence (C) Personal competence

(B) Technical - functional competence (D) Security

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13. Theory “Z” has been propounded by:

(A) McGregor (C) Maslow

(B) Ouchi (D) Skinner

14. Which of the following is not within the scope of “Adjudication”?

(A) Conciliation (C) Industrial Tribunal

(B) Labor Court (D) National Tribunal

15. Outplacement services are provided to employees who have been:

(A) Dismissed (C) Retired

(B) Rendered surplus (D) Given voluntary retirement

16. What notice period is required for going on strike/lockout in public utility
services?
(A) One week (C) Six weeks

(B) Three weeks (D) Nine weeks

17. Modifying methods of performing a job to reduce the levels of skill or


skills demanded is known as:

(A) Multi - tasking (C) Multi - skilling

(B) De - skilling (D) None of these

18. The computation of NPV is based on the assumption that:

(A) Cash flows for each year remain constant

(B) Net present value can never be less than zero

(C) Intermediate cash flows are being reinvested at the discount factor

(D) Discount factor should remain constant throughout the life of the project

19. For determination of cost of equity the formula used is:

(A) Rate of interest (1 — t)

(B) Rate of dividend (1 — t)

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(C) Rate of Dividend (Face value — Issue Price)/n

(D) D1 + g

Po

20. According to MM - Approach proposition - I, value of firm is:

(A) Independent of capital structure

(B) Dependent on capital structure

(C) Dependent on tax-rate of the enterprise

(D) Dependent on risk of the enterprise

21. A stable dividend policy indicates:

(A) Stable earning/price ratio (C) Stable pay-out ratio

(B) Stable price/earnings ratio (D) Stable earnings per share

22. The vertical merger represents merger of firms engaged in:

(A) The same line of business

(B) Different stages of production in an industry

(C) Unrelated lines of business

(D) All of the above

23. The degree of total leverage is equal to:

(A) Percentage change in EPS/percentage change in sales

(B) Percentage change in EBIT/percentage change in sales

(C) Percentage change in EPS/percentage change in EBIT

(D) Percentage change in sales/percentage change in EBIT

24. Changes in the population characteristics such as age, gender, race, marital
status, income and education are the examples of:

(A) Geographic characteristics (C) Psychographic characteristic

(B) Cultural characteristics (D) demographic characteristics

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25. Which of the following is not constituent of promotion-mix?

(A) Advertising (C) Direct marketing

(B) Sales promotion (D) Publicity

26. Which of the following factors does not influence the pricing strategy of a
firm?

(A) Market (C) Cost

(B) Competition (D) R & D

27. Who coined the term “Marketing Myopia”?

(A) Peter Drucker (C) Philip Kotler

(B) Stanton (D) Theodore Levitt

28. In the diffusion of innovation who are the people not willing to try out the
product?

(A) Innovators

(B) Progressive people

(C) Early adopters

(D) Early majority

29. Which of the following is not a variable for segmenting the market?

(A) Sex (B) Age (C) Income (D) Sales

30. At which stage of new product development process, the launching of new
product will take place:
(A) Concept development

(B) Marketing strategy development

(C) Test marketing

(D) Commercialization

31. Strategic production planning decisions include:

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(A) Quality development (C) Manpower planning

(B) Make or Buy decision (D) Layout planning

32. Which one of the following is not the type of Plant Layout?

(A) Process Layout (C) Fixed position Layout

(B) Product Layout (D) Selection Layout

33. Production control is concerned with:

(A) Establishment of Quality Standard norms

(B) Execution of production plan

(C) Expediting the production process

(D) Product Quality control

34. Critical Path Method network analyses is done with the objective of:

(A) Determining the completion time for the project

(B) Determining the product quality

(C) Determining the production cost

(D) Determining the pay-back period

35. „Q‟ systems of inventory control provides for:

(A) Ordering the inventory when it normally equals to EOQ

(B) Ordering the inventory depending on the stock level on hand

(C) Optimization of inventory costs

(D) None of the above

36. In case of Binomial distribution, the mean is:

(A) Always greater than variance

(B) Always equal to variance

(C) Always less than variance

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(D) None of these

37. Car hire firm has two cars which it hires out daily. The demand for car is
distributed as Poisson with mean 2. If the value of e2250.1353, the number of
days out of 100 days on which neither of the car is used are:

(A) Approximately 14 (C) Approximately 32

(B)Approximately 22 (D) None of these

38. A committee of four has to be formed from among 3 Economists, 2


Managers, 4 Doctors and one Statistician. The Probability that all 4 professions
are represented on the committee will be:

(A) 14/35 (B) 10/35 (C) 4/35 (D) 24/35

39. Correlation Coefficient is equal to:

(A) Arithmetic mean of both regression coefficients

(B) Geometric mean of both regression coefficients

(C) Difference of two regression coefficients

(D) None of these

40. When Null hypothesis (Ho) is true and test rejects it, it is called:

(A) Type - I error (B) Type-II error

(C) Level of significance (D) None of these

41. Which element identities the strategic factors that determine the future of a
firm?

(A) Environmental Scanning

(B) Strategy Formulation

(C) Strategy Implementation

(D) Strategy Evaluation and Control

42. Which strategy provides a means for achieving a company‟s annual


objectives?

(A) Marketing Strategy (C) Business Strategy


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(B) Operating Strategy (D) Corporate Strategy

43. Which of the following is not a primary activity in a value chain?

(A) Human Resource Management (C) Operations

(B) Marketing and Sales (D) Outbound logistics

44. Which one of the following represents the best long run opportunity in a
firm‟s business portfolio?

(A) Star (C) Cash COW

(B) Question Mark (D) DOG

45. A firm tries to achieve the lowest cost of production and distribution so that
it can set its prices at a lower level than its competitors. Which generic strategy
it is following?

(A) Cost leadership (C) Focus

(B) Differentiation (D) All of the above

46. Which method of product portfolio analysis helps in deciding which


products are to be retained and which are not to be retained?

(A) Ansoff‘s Matrix (C) BCG Matrix

(B) Environment Matrix (D) All of the above

47. What BIFR stands for?

(A) Bureau of Industrial Financial Reconstruction

(B) Board of Industrial Financial Reconstruction

(C) Bureau of Industrial Financial Re-engineering

(D) Board of Industrial Financial Re-engineering

48. Which one of the following is not the reason for sickness of industries?

(A) Inadequate working capital

(B) Huge Market

(C) Out dated Technology

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(D) Changing tastes of consumers

49. Environmental Ethics refers to:

(A) Unfair Trade Practices (C) Product price

(B) Pollution (D) Quality of the product

50. Corporate governance includes management of:

(A) Employees (C) Society

(B) Organization (D) All of the above

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SECTION 3
FULL PAPERS
UNSOLVED
FOR PRACTICE

489
UGC NET PAPER II NOVEMBER 2017
1. Managerial economics is concerned with which combination of the
following?

(a) Investment Analysis and Decisions

(b) Production Behavior and Cost Analysis

(c) Input Reward Analysis and Decisions

(d) Economic Environment Analysis

Code:

(1) (a), (b) and (c)

(2) (b), (c) and (d)

(3) (a), (b) and (d)

(4) (a), (c) and (d)

2. When P0 and P1 and Q0 and Q1 denote before and after change in the price
and quantity respectively and in both the situations, total outlay remains the
same, which of the following formulae give the similar value of the arc price -
elasticity of demand?

(a) Qo-Q1 X Po+ P1 ( b) Qo-Q1 X Po

Po-P1 Qo+Q1 Po-P1 Q1

(c) Qo-Q1 X Po (d) Qo-Q1 X P1 (e) Qo-Q1 X P1

Po-P1 Qo Po-Q1 Q1 Po-P1 Qo


Code:

(1) (b), (c) and (e)

(2) (a), (b) and (e)

(3) (a), (c) and (e)

(4) (b), (c) and (d)


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3. In case the producer‟s equilibrium shifts to a higher isoquant due to decrease
in price of aninput, the curve combining the successive equilibrium positions is
known as:

(1) Product Possibility Curve (2) Price Factor Curve

(3) Expansion Path (4) Product Line

4. Which one of the following statements is not correct?

(1) Marginal cost declines at a faster rate as compared to the average cost.

(2) Marginal cost rises at a faster rate as compared to the average cost.

(3) Marginal cost equals average cost where average cost is minimum.

(4) Average cost equals marginal cost where marginal cost is minimum.

5. Cost - Plus pricing is not suitable for:

(1) Product Tailoring (2) Profit Maximizing

(3) Monopsony Pricing (4) Public Utility Pricing

6. Match the following and select the correct code of matching :


List - I List - II
(a) F.W. Taylor (i) Fair day‘s pay for fair day‘s work
(b) Henry L. Gantt (ii) Motion study
(c) Frank and Lillian Gilbreth (iii) Graphic scheduling for planning and
controlling of work
(d) Max Weber (iv) Bureaucratic organization
Code:
(a) (b) (c) (d)
(1) (i) (ii) (iii) (iv)
(2) (i) (iii) (ii) (iv)
(3) (iv) (iii) (ii) (i)
(4) (iv) (i) (ii) (iii)
7. The achievement of goals with the least amount of resources is:
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(1) Effectiveness (2) Efficiency (3) Productivity (4) Both (1) and (2)
8. Which one of the following is the fundamental rethinking and radical
redesign of business processes to achieve improvements in performance?
(1) Reengineering (2) Reorganizing
(3) Revisiting (4) Rescheduling
9. Match the following and select the code of correct matching:
List - I List - II
(a) Motivating through rewards (i) Charismatic leadership and
penalties
(b) Changing organization by creating (ii) Situational leadership and
communicating a vision
(c) Influencing by dint of personality (iii) Transactional leadership and
charm
(d) Modifying style with respect to (iv) Transformational leadership readiness
of followers

Code:
(a) (b) (c) (d)
(1) (iii) (i) (ii) (iv)
(2) (iii) (iv) (i) (ii)
(3) (iii) (iv) (ii) (i)
(4) (iv) (iii) (ii) (i)
10. Which one of the following is not a „hygiene factor‟ of Herzberg‟s Two
Factor theory?
(1) Interpersonal relations (2) Working conditions
(3) Responsibility (4) Job security
11. Assertion (A): Promotion is a move within the organization to a higher
position that has greater responsibilities and requires more advanced skills.

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Reasoning (R): Promotion may not involve a raise in status but a hike in salary
is a must.

Code:

(1) (A) and (R) both are correct.

(2) (A) and (R) both are incorrect.

(3) (A) is correct whereas (R) is incorrect.

(4) (A) is incorrect whereas (R) is correct.

12. Match the following and select the code of correct matching:

List - I List – II

(a) Identification of leadership potential (i) Vocational Tests

(b) Finding most suitable area of working (ii) Aptitude Tests

(c) Discovering interest and potential (iii) Intelligence


Tests for acquiring skills

(d) Measuring capacity to think, learn (iv) Personality


Tests and draw relationships

Code:

(c) (b) (c) (d)

(1) (iv) (iii) (ii) (i)

(2) (i) (ii) (iii) (iv)

(3) (iv) (i) (ii) (iii)

(4) (i) (iii) (ii) (iv)

13. Which one of the following is a facility to file anonymous complaints?

(1) Juke Box (2) Wide Box (3) Gripe Box (4) Hard Box

14. Which of the following is/are not gain sharing plan(s)?

(a) Scanlon Plan

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(b) Rucker Plan

(c) Employee Stock Option Plan

(d) Improshare Plan

Code:

(1) (c) only

(2) (d) only

(3) (c) and (d) both

(4) (b), (c) and (d)

15. In which one of the following methods of performance appraisal,


predetermined percentages of rates are placed in various performance
categories?

(1) Alternation Ranking Method

(2) Forced Distribution Method

(3) Paired Comparison Method

(4) Check - list Method

16. Indicate the correct code for the combination from the following regarding
the superiority of the wealth maximization over the profit maximization
objective of the financial management:

(a) It takes into account long term stability and survival of the firm.

(b) It takes care of all other objectives of the firm like exploring and expanding
markets, etc.

(c) It is based on the assumption of perfect competition in the market.

(d) It considers risk along with returns.

Code:

(1) (a), (b), (c) and (d)

(2) (b), (c) and (d)

494
(3) (a), (b) and (d)

(4) (a), (c) and (d)

17. The controller function of the financial management concerns with:

(1) Advertising the public issue of the firm

(2) Negotiating with banks for loans

(3) Analyzing variance between standard costs and actual costs

(4) Estimating the future cash flows from certain project

18. Capital Asset Pricing Model (CAPM) for risk measurement has been given
by:

(1) Sharpe and Lintner

(2) Lintner and Treynor

(3) Sharpe, Lintner and Treynor

(4) Lintner, Modigliani and Miller

19. Beta (β) is a measure of:

(1) Systematic Risk (3) Total Risk

(2) Unsystematic Risk (4) Business Risk

20. Capital budgeting is concerned with:

(1) Arranging cash resources for the project.

(2) Managing the working capital of the firm.

(3) Managing the fixed assets through repairs and renewals.

(4) Evaluating the returns and investment in projects.

21. Which one of the following is the demand state where “Consumers dislike
the product and may even pay to avoid it”?

(1) Unwholesome demand (3) Negative demand

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(2) Declining demand (4) Latent demand

22. Evaluate the statements according to Brand Asset Valuator Model of Brand
Equity:

Statement (I): Knowledge measures the degree to which a brand is seen as different
from others as well as its pricing power.

Statement (II): Esteem measures perceptions of quality and loyalty or how well
the brand is regarded and respected.

Code:

(1) Both the Statements are correct.

(2) Both the Statements are incorrect.

(3) Statement (I) is correct while Statement (II) is incorrect.

(4) Statement (I) is incorrect while Statement (II) is correct.

23. If a coaching institute provides some supporting study material along with
teaching, then which one of the following service mix category would it be?

(1) Hybrid offering

(2) Major Service with accompanying minor goods and services

(3) Tangible good with accompanying services

(4) Pure service

24. Statement (I): A low market - penetration index indicates substantial growth
potential for all the firms.

Statement (II): Generally, price competition increases and margins fall when
the market -penetration index is already high.

Code:

(1) Both the Statements are correct.

(2) Both the Statements are incorrect.

(3) Statement (I) is correct while Statement (II) is incorrect.

496
(4) Statement (I) is incorrect while Statement (II) is correct.

25. Which one of the following is a system of partnerships and alliances that a
firm creates to source, augment, and deliver its offerings?

(1) Value network

(2) Omnichannel marketing

(3) Integrated marketing channel system

(4) Direct marketing channel

26. Statement (I): Time study is an area of study whose fundamental purpose is
to set time standards for work using different methods.

Statement (II): Work measurement is a structured process of directly observing


and measuring (using a timing device) human work in order to establish the
time required for completion of the work by a qualified worker when working at
a defined level of performance.

Code:

(1) Both the Statements are correct.

(2) Both the Statements are incorrect.

(3) Statement (I) is correct while Statement (II) is incorrect.

(4) Statement (I) is incorrect while Statement (II) is correct.

27. Which one of the following combinations of the characteristics of the


popular layouts is not matching?

Factors Fixed Product Process Cellular


Layout Layout Layout Layout
(1) Material Fixed Path Variable Often high Variable
Travel Path Path path
(2) Process Ship Continuous Job or Small to
Building and small medium
Repetitive Batch batch
(3) Product Made to Standardized Diversified Diversified
order, low Product products products
volume using
common

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operations
(4) Utilization Moderate Very high General High
of facilities Purpose

28. In the context of distinguishing between forecasting and prediction, which


one of the following statements is false?
(1) Forecasting is based on a theoretical model while prediction may be based
on intuition.
(2) Forecasting reflects management‘s judgment after taking all available
information into account; while prediction involves the projection of the past
into the future.
(3) Error analysis is possible in the case of forecasting while no error analysis is
done in the case of prediction.
(4) No objectivity is found in the case of prediction.
29. An activity that consumes no time but shows precedence among activities
is known as:
(1) Slack activity (2) Successor activity
(3) Dummy activity (4) Critical activity
30. Which one of the following is not correct matching between level of facility
planning and type of activity?
(1) Global level and site location and selection
(2) Macro layout level and Site planning
(3) Micro layout level and Cell design
(4) Sub - Micro layout level and work station and Cell design
31. Which one of the following statements is false?
(1) Sample space refers to the collection of all favorable outcomes of an
experiment.
(2) Collectively exhaustive events are those whose union is sample space.
(3) All the outcomes of an experiment are known as sample space.
(4) Two events are said to be independent if the happening of one does not
affect the probability of happening of the other.

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32. Which one of the following is a false statement?
(1) A binomial distribution involves infinite number of trials
(2) The mean and the variance of a Poisson distribution are equal
(3) The standard normal distribution has μ=0 and s=1
(4) The standard deviation of an exponential distribution is equal to its mean
33. In the context of coefficient of correlation (r), match the items of List - I
with the items of List - II and select the code of correct matching:
List - I List – II
a. 1- r²
√n i. Probable error of r

b. (0.6745) 1- r²
√n ii. Coefficient of determination

c. r² iii. Standard error of r


Code:-
a b c
1. ii i iii
2. iii ii i
3. ii iii i
4. i ii iii
34. Which one of the following statements is true?
(1) If one of the regression coefficients is greater than one, the other must also
be greater than one.
(2) The product of the two regression coefficients is always more than one.
(3) Correlation coefficient is the arithmetic mean of the two regression
coefficients.
(4) The signs of the two regression coefficients are always the same.
35. In the absence of which of the following, SPSS can be used as an alternate?
(1) MS Word
(2) MS Excel

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(3) MS Access
(4) MS Datapro
36. Match the items of List-I and List-II and select the code of correct
matching:-
List- I List-II
a. Merger of Vodafone and Idea (i) Business Strategy
b. Launch of Apple iPhone 7plus (ii) Operational Strategy
c. Manufacturing Samsung mobile
Handsets in India (iii) Corporate Strategy
Code:
a b c
1. iii i ii
2. iii ii i
3. ii iii i
4. ii i iii
37. Which among the following are 5ps of strategy as identified by Mintzberg?
a. Plan
b. Problem
c. Pattern
d. Position
e. Ploy
f. Perspective
Code:-
1. a, b, c, d and e
2. a, b, d, e and f
3. b, c, d, e and f
4. a, c, d, e and f
38. Assertion (A): A firm‟s relative position within its industry determines
whether the firm‟s overall profitability is above or below the industry average.

500
Reasoning (R): The fundamental basis of average profitability in the long run is
sustainable competitive advantage
Code:-
1. A and R both are correct and R is the right explanation of A
2. A and R both are correct but R is not the right explanation of A
3. A is correct but R is incorrect
4. R is correct but A is incorrect
39. Statement I:- A “Star” is the market leader in a high-growth market; and it
has sufficient cash to support other businesses.
Statement II:- “Dogs” have weak market share in high-growth market.
Code:-
1. Statement I is correct but II is incorrect.
2. Statement is correct but I is incorrect.
3. Both the Statements I and II are correct
4. Both the Statements I and II are incorrect
40. Which among the following is not a generic strategy?
1. Unity Strategy
2. Cost Leadership Strategy
3. Differentiation Strategy
4. Niche Strategy
41. Elements of entrepreneurial competencies, according to the theorist of the
subject, pertain to which one of the following?
(1) Body of knowledge, set of skills, cluster of appropriate motives and traits
(2) Ability to prepare viable project, executional skills and materialization of
group goals
(3) Ability to work in a group, enforce group dynamics and motivate employees
(4) Assigning priorities to hierarchy of Maslow‘s monetary needs and non-
monetary needs
42. Under the new norms of Micro, Small and Medium Enterprises
Development (MSMED) Act 2006, the criteria of investment limit in plant and
machinery for MSME falls under which one of the following category?

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(1) Micro Rs25 lakh, small Rs5 crore, Medium Rs10 crore

(2) Micro Rs20 lakh, small Rs2.5 crore, Medium Rs5 crore

(3) Micro Rs20 lakh, small Rs6 crore, Medium Rs8 crore

(4) Micro Rs25 lakh, small Rs10 crore, Medium Rs15 crore

43. Entrepreneurial Judo strategy aims at which one of the following?

(1) Filling holes left by others in the industry.

(2) Developing effectiveness in the industry.

(3) Mobilizing finance and effective use to reduce NPAs.

(4) Creating competitive environment in the environment of SMMEs.

44. Preparation of a business plan as a pre-requisite to a promotion of a


business enterprise, relates to which one of the following?

(1) There are no flaws in the business idea, the fashion, conviction and tenacity
of the entrepreneur.

(2)Make arrangement for finance and prevent occurrence of NPAs by business


entity.

(3) Ensure that business entity works at break-even level.

(4) Make plan to raise finance from market and alternative investment
opportunities

45. Federation of Associations of Small Industries of India (FASII) promoted


in 1959 is which one of the following type?

(1) Government organization

(2) Liaisoning organization

(3) Small Scale unit

(4) SSI Board

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46. Statement (I): The science of ethics is a normative science.

Statement (II): Normative sciences judge the value of the facts in terms of an
idea; concerned with judgments of „what ought to be‟ but not with factual
judgments.

Code:

(1) Statement (I) is correct but Statement (II) is incorrect.

(2) Statement (II) is correct but Statement (I) is incorrect.

(3) Both the Statements (I) and (II) are incorrect.

(4) Both the Statements (I) and (II) are correct.

47.Match the items of List-I with those of List-II and choose the correct
combination:-

List-I List-II

a. Ethics are the principles of conduct governing

an individual or profession i. John Donaldson

b. Ethics is the discipline dealing with what is good

and bad, or right and wrong or with moral duty and

obligation ii. Keith Davis

c. Ethics are a set of rules that defines right and

wrong conduct iii Shea

d. Business ethics, in short can be described

as the systematic study of moral (ethical) matters

pertaining to business, industry or related activities,

institutions, or practices and beliefs iv. R. Wayne Mondy

503
Code:-

a b c d

1. iii iv i ii
2. iii iv ii i
3. iv iii ii i
4. i ii iii iv
48. Assertion A: - Decisions in small matters largely tend to set a pattern for the
more important ones you may make as managers.

Reasoning R: - A multi-industry survey conducted in USA indicated that 40%


of the managers said that their superiors had at some time told them to do
certain things unethical

Code: -

1. A and R both are correct and R is the right explanation of A


2. A is correct whereas R is incorrect
3. A is incorrect whereas R is correct
4. A and R both are correct but R is not the correct explanation of A
49. Deontological theory of ethics is concerned with which of the following?

a. Duty ethics
b. Obligation ethics
c. Rule based ethics
d. Classical ethics
Code: -
1. a and b
2. a and c
3. a and d
4. a, b, and c
50. Utilitarianism theory of ethics refers to which one the following?

1. Welfare

2. Duty

3. Obligation

4. Rules

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UGC NET PAPER II JANUARY 2017
1. Indicate the correct code for the scope of managerial economics from the
following:

a. Demand Analysis

b. Production and Cost Analysis

c. Pricing and Investment Decisions

d. Factor pricing Decisions

e. Economic Environmental Analysis

Codes:

(1) a, b, c, d (2) b, c, d, e

(3) a, b, c, e (4) a, c, d, e

2. Price elasticity of demand for a product is measured by

(1) Ed = ΔQ × ΔP (2) Ed = ΔQ ÷ ΔP

Q P Q P

(3) Ed = ΔP × Q (4) Ed = ΔP ÷ ΔQ

ΔQ P P Q

(Where Ed = elasticity of demand, Q = Quantity, P = Price and Δ = represents


change)

3. Which one of the following will be the appropriate pricing strategy for a new
product expecting an expanding market?

(1) Monopoly pricing (2) Skimming pricing

(3) Penetrating pricing (4) Differential pricing

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

List – I List – II

i. Loss Leader a. Locational price differentials


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ii. Unchanged Pricingb. Products with high initial demands

iii. Basing Point pricing c. Product line pricing

iv. Skimming Pricing d. Oligopoly pricing

Codes:

i ii iii iv

(1) a b c d

(2) c d a b

(3) d b a c

(4) c a b d

5. In case the firm makes varying investments on the different investment


projects, the appropriate project evaluation technique would be, which one of
the following?

(1) Average annual rate of return technique

(2) Payback period technique

(3) Net present value technique

(4) Profitability index technique

6. According to Henry Fayol, which one of the following combinations of


qualities are required in a manager?

(1) Physical, mental, experience, educational and conceptual

(2) Technical, human, conceptual, mental and moral

(3) Physical, mental, moral, educational, technical and experience

(4) Mental, moral, conceptual, educational, technical and experience

7. Neo-classical organization theory emphasizes on which one of the


following?

(1) Flat structure of organization

(2) Tall structure of organization

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(3) Coordination by hierarchy

(4) Unity of command

8. According to Graicuna‟s formula of span of management, if a superior has


threesubordinates, what number of cross-relationships would be?

(1) Three

(2) Six

(3) Nine

(4) Eighteen

9. In Reddin‟s „Tridimensional Grid‟, which one of the following is a less


effective style of leadership?

(1) Developer (2) Missionary

(3) Executive (4) Bureaucrat

10. Assertion (A): Attribution theory is based on relationship between


personal perception and interpersonal behavior.

Reasoning (R): Since most „whys‟ are not directly observable, people must
depend upon cognitions, particularly perception.

Codes:

(1) (A) is right but (R) is wrong.

(2) (A) is wrong but (R) is right.

(3) Both (A) and (R) are right but (R) does not explain (A).

(4) Both (A) and (R) are right and (R) explains (A).

11. Arrange the following steps of training and development process in the right
sequence:

a. Need analysis

b. Validation

c. Evaluation

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d. Implement the programme

e. Instructional design

(1) a, e, d, c, b (2) a, e, c, b, d

(3) a, e, b, d, c (4) a, b, e, c, d

12. Which one of the following is related to „Standard of Personnel‟?

(1) Job Specification (2) Job Description

(3) Job Design (4) Job Evaluation

13. If an employee desires to pay more than the minimum required contribution
under the Employees‟ Provident Fund and Miscellaneous Provisions Act,
1952, then

(1) Employer shall also pay an amount equal to the total contribution of
employee.

(2) Employer shall pay only half of the additional contribution of employee.

(3) Employer is under no obligation to pay the additional contribution.

(4) The act is silent regarding this matter.

14. Under the Employees‟ State Insurance Act, 1948, sickness benefit can be
paid for which one of the following maximum periods?

(1) 45 days in two consecutive benefit periods.

(2) 66 days in two consecutive benefit periods.

(3) 91 days in two consecutive benefit periods.

(4) 180 days in two consecutive benefit periods.

15. Which one of the following laws is enacted by the Central Government and
enforced by the State Governments?

(1) The Employees State Insurance Act, 1948

(2) The Employees‘ Provident Fund and Miscellaneous Provisions Act, 1952

(3) Factories Act, 1948

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(4) The Mines Act, 1952

16. The cost of external equity can be most appropriately computed as per the

(1) Earnings price ratio

(2) Dividend price ratio

(3) Dividend price plus growth ratio

(4) Capital assets pricing model

17. For the following items in List – I and List – II, indicate the correct code
after matching them:

List – I List – II

i. Net income approach for capital structure a. Modigliani, M. and Miller


M.H.

ii. Net operating income approach for capital structure b. Robert


Bruner

iii. Irrelevance of capital structure for the value of the firm. c. Ezra
Soloman

iv. FRICT analysis for capital structure d. David Durand

Codes:

i ii iii iv

(1) a b c d

(2) d c a b

(3) d c b a

(4) b a d c

18. Which one of the following is not a feature of „Preference Shares‟?

(1) Prior claim on income / assets of the company over equity shareholders.

(2) Redeemability after certain period.

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(3) Possessing voting rights on important issues of the company.

(4) May possess the right to participate in surplus profits of the company.

19. The basic consideration for dividend pay-out for a company excludes which
one of the following?

(1) Investment opportunities for the company

(2) Expectations of the shareholders of the company

(3) Legal and financial restrictions for the company

(4) Stability of the dividend considerations

20. For the following two statements of Assertion (A) and Reasoning (R)
indicate the correct code:

Assertion (A): Shareholders Wealth Maximization (SWM) and not the profit
Maximization is an appropriate and operationally feasible financial management
goal.

Reasoning (R): There exists a principal-agent relationship between the shareholders


and the management of the company.

Codes:

(1) (A) and (R) both are correct.

(2) (A) is correct but (R) is incorrect.

(3) (A) is incorrect but (R) is correct.

(4) (A) and (R) both are incorrect.

21. Which one of the following components is not the part of broad marketing
environment?
(1) Technological environment
(2) Task environment
(3) Demographic environment
(4) Natural environment
22. The Coco Cola Company markets a wide range of different beverage
products including bottled water, soft-drinks, juices and sports drinks.

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Each product appeals to a different segment. This is an example of which type
of market offering?
(1) Differentiated marketing
(2) Target marketing
(3) Undifferentiated marketing
(4) Intensified marketing
23. Temporarily reducing prices to increase short-run sales is an example of
which one of the following?
(1) Segmented pricing (2) Promotional pricing
(3) Dynamic pricing (4) Geographical pricing
24. Match the items of List – I with the items of List – II and indicate the code
of correctmatching:

List – I List – II
b. Brand elements i. The marketer‘s vision of what the brand must
be and do for consumers.
b. Brand line ii. All products, original as well as line and
category extensions, sold under a particular
brand name.
c. Brand personality iii. Those trademark able devices that serve to
identify and differentiate the brand.
d. Brand promise iv. The specific mix of human traits that may be
attributed to a particular brand.
Codes:
abcd
(1) iii ii iv i
(2) i ii iii iv
(3) iii i iv ii
(4) iv iii ii i

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25. Statement – I: In developing advertising programme marketing managers
must always start by identifying the target market and buyer motives.

Statement – II: A company may run multiple ad campaigns at the same time,
each emphasizing different aspects of its brand and service.

(1) Only Statement – I is correct.

(2) Only Statement – II is correct.

(3) Both Statements – I and II are correct.

(4) Both Statements – I and II are incorrect.

26. Match the items of List – I with the items of List – II and select the code of
correct matching with regard to forecasting models for operations:

List – IList – II

(Model Type (name)) (Description)

a. Delphi technique i. Causal quantitative


model

b. Economic modeling ii. Quantitative model


(Naive)

c. Exponential Smoothing iii. Qualitative model

Codes:

abc

(1) i ii iii

(2) iii i ii

(3) iii ii i

(4) ii iii i

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27. In which one of the following situations, a product-oriented layout is
appropriate?
(1) A medical clinic
(2) An automated carwash
(3) A work Centre for welding, heat treating and painting
(4) A home plumbing repair business.
28. A graphic tool to trace the interaction of several workers with one machine
is termed as
(1) Gang process chart (2) Flow process chart
(3) Activity chart (4) Operation chart
29. Which one of the following is a technique of statistical quality control used
for product control?
(1) R-chart (2) Sampling plan
(3) np-chart (4) control-chart
30. The decision-criterion in which a decision-maker selects an alternative that
maximizes H (criterion of realism) = [a × (maximum in column)] + [(1
a) × (minimum in column)] is called
(1) Laplace criterion (2) Hurwicz criterion
(3) Wald‘s criterion (4) Bayesian criterion
31. Which one of the following expressions relates to an event which
represents the occurrence of either A or B or both?
(1) A ∪ B
(2) A ∩ B
(3) ––
A∩B

(4) (A ∩ ⁻ B) ∪ (⁻ A ∩ B)

32. A Bernoulli process has all but which one of the following properties?
(1) Each trial has two possible outcomes.
(2) The probability of a success on any trial remains fixed over time.

513
(3) The probability of success on any trial is equal to the probability of failure.
(4) Trials are statistically independent.
33. Statement – I: The product of coefficient of correlation, standard deviation
of variable „X‟ and Standard deviation of variable „Y‟ gives the measure of
covariance between X and Y variables.
Statement – II : The product of coefficient of correlation between X and Y
variables and the ratio between standard deviation of X variable to standard
deviation of Y variable measures the slope of the regression line of X on Y
variable.
Codes:
(1) Both the Statements are correct.
(2) Both the Statements are incorrect.
(3) Statement – I is correct while Statement – II is incorrect.
(4) Statement – I is incorrect while Statement – II is correct.
34. Statement – I: Both the probable error and standard error of the coefficient
of correlation are different.
Statement – II: When a sampling distribution of mean is prepared by taking
small sized samples from a normally distributed population, the distribution
takes the shape of normal distribution.
Codes:
(1) Both the Statements are correct.
(2) Both the Statements are incorrect.
(3) Statement – I is correct while Statement – II is incorrect.
(4) Statement – I is incorrect while Statement – II is correct.
35. Which one of the following is not the major characteristic of internet?
(1) Open (2) Expensive
(3) Global (4) Untrusted
36. Assertion (A): Private foreign capital lends to flow to the high profit areas
rather than to the priority sectors.

514
Reasoning (R): One of the important limitations to utilize the foreign capital is
the absorptive capacity of the recipient country.
Codes:
(1) (A) and (R) both are correct and (R) is the correct explanation of (A).
(2) (A) and (R) both are correct but (R) is not the correct explanation of (A).
(3) (A) is correct whereas (R) is incorrect.
(4) (R) is correct whereas (A) is incorrect.
37. Consider the following statements and identify the correct code of true
statements:
(a) When an organization‘s survival is threatened and it is not competing
effectively, retrenchment strategies are often needed.
(b) Turnaround strategy is used when an organization is performing well but has
not yet reached a critical stage.
(c) Divestment strategy involves selling the business or setting it up as a
separate corporation.
(d) Liquidation strategy involves closure of business which is no longer
profitable.
Codes:
(1) Only (a), (b) and (c) are correct.
(2) Only (b), (c) and (d) are correct.
(3) Only (a), (c) and (d) are correct.
(4) Only (a) and (d) are correct.

38. Statement – I: Most businesses start off as “Question Marks”, in that they
enter a high growth market in which there is already a market leader. Statement
– II: A “Star” is the market leader in a high-growth market, but it does not
necessarily provide much cash.

(1) Statement – I is correct but Statement – II is incorrect.


(2) Statement – II is correct but Statement – I is incorrect.
(3) Both the Statements are incorrect.

515
(4) Both the Statements are correct.
39. Match the items of List – I with List – II and identify the code of correct
matching:
List – I List – II
a. Consistent actions one time i. A perspective
b. It reflects the decision of the firm to offer
particular products or services in particular markets. ii. A ploy
c. A manoeuvre intended to outwit competitor iii. A position
d. A view of what the organization is to become iv. A pattern
Codes:
abcd
(1) iv iii i ii
(2) iv i ii iii
(3) iv iii ii i
(4) iii iv ii i
40. Apple computers use a differentiation competitive strategy that
emphasizes innovative product with creative design. This is an example of
(1) Functional strategy (2) Business strategy
(3) Operating strategy (4) Product strategy
41. Match the items of List – I with the items of List – II and select the code of
correcting matching:
List – I List – II
a. Richard Cantilloni. Entrepreneur must accept the challenge
and should be willing hard to achieve something
b. Joseph A. Schumpeter ii. Entrepreneurs are all those persons who
are engaged in economic activity.
c. J.K. Golbraithiii. Entrepreneur is a person who introduces
innovation and change.
Codes:

516
abc
(1) iii i ii
(2) i iii ii
(3) ii iii i
(4) ii i iii
42. Total Quality Management, job redesigning, new techniques of doing things
and management by consensus are the examples of which one of the following?
(1) Opportunistic entrepreneurship
(2) Administrative entrepreneurship
(3) Incubative entrepreneurship
(4) Mass entrepreneurship
43. Under technology and quality upgradation support to help manufacturing
MSMEs buy energy efficient technologies for production, what percentage of
the actual expenditure is provided as financial support by the Government of
India ?
(1) 75% (2) 60%
(3) 50% (4) 25%
44. Which one of the following is not a personal characteristic of an
entrepreneur?
(1) Innovative (2) Hardworking
(3) Practical (4) Submissive

45. Which one of the following is the most insignificant reason for sickness in
SSI sector?
(1) Power shortage (2) Lack of demand
(3) Management problems (4) Equipment problems
46. Statement – I: Ethical principles tend to be broader than legal principles.

517
Statement – II: Laws and ethics are closely related.
Codes:
(1) Statement – I is correct but Statement – II is incorrect.
(2) Statement – II is correct but Statement – I is incorrect.
(3) Both the Statements are correct.
(4) Both the Statements are incorrect.
47. Assertion (A): The state shall endeavor to protect and improve the
environment and to safeguard the forest and wildlife of the country. Reasoning
(R): The Directive principles of state policy of the Indian Constitution
Command the State to ensure protection and improvement of environment and
to safeguard forest and wildlife.
Codes:
(1) (A) is correct but (R) is not correct.
(2) (R) is correct but (A) is not correct.
(3) Both (A) and (R) are correct and (R) is the right explanation of (A).
(4) Both (A) and (R) are correct but (R) is not the right explanation of (A).
48. Match the items of List – I with List – II and identify the code of correct
matching:
List – IList – II
(CSR Models) (Emphasis)
a. Ethical Model i. corporate responsibilities limited to private owners.
b. Statist Model ii. Voluntary commitment by companies topublic welfare
c. Liberal Model iii. State ownership and legal requirements determine
corporate responsibilities.
d. Stakeholder Model iv. Companies respond to the need of customers,
communities, etc
Codes:
abcd
(1) ii iii i iv

518
(2) ii i iii iv
(3) ii i iv iii
(4) i iii ii iv
49. Which one among the following is not correct about J. J. Irani Committee‟s
recommendations on Company Law (2005) :
(1) 2/5th of the board of a listed company should comprise of independent
directors.
(2) Introduce the concept of One Person Company (OPC).
(3) Allow corporations to self-regulate their affairs.
(4) Disclose proper and accurate compilation of financial information of a
corporation.
50. A business should act ethically for which of the following reasons?
(a) To prevent harm to the general public
(b) To meet stake-holder expectations
(c) To protect their own employees
(d) To maximize profit of the business
Codes:
(1) (a), (b) and (c) only
(2) (b), (c) and (d) only
(3) (a), (c) and (d) only
(4) (a) and (d) only

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UGC NET PAPER II JULY 2016
1. The following is the demand function: Q = 100 – 5P
What will be the point price elasticity of demand at price Rs10?
(1) 2.00 (2) 1.00
(3) 0.85 (4) 0.50
2. The short-run cost function of a firm is as under:
TC = 200 + 5Q + 2Q2
What will be the level of output at which AC and MC will be equal?
(1) 20 (2) 15
(3) 10 (4) 5
3. Match the items of List – I with the items of List – II and select the code of
correct matching:
List – I List – II
a. Sales Revenue Maximization i. Williamson‟s Model

b. Maximization of a firm‟s growth rate ii. Cyert-March Hypothesis


c. Maximization of Managerial Utility function iii. Baumol‟s Theory
d. Satisficing behavior model iv. Marri‟s Theory
Codes:
abcd
(1) iii iv i ii
(2) i ii iv iii
(3) ii iii i iv
(4) iv iii ii i

4. Assertion (A): The perceived risk of operating a domestic firm in


international environment is much higher.

520
Reason (R): The international environment is more volatile and the domestic
firm generally does not have full information about the environment.
Codes:
(1) Both (A) and (R) are correct.
(2) Both (A) and (R) are incorrect.
(3) (A) is correct while (R) is incorrect.
(4) (A) is incorrect while (R) is correct.
5. Statement – I: The accept-reject approach is adopted generally when a firm
has a large amount of funds to invest in several projects at the same time.
Statement – II: Both the NPV and the IRR methods of investment appraisal
are based on discounted cash flow approach.
(1) Both the statements are correct.
(2) Both the statements are incorrect.
(3) Statement – I is correct while Statement – II is incorrect.
(4) Statement – I is incorrect while Statement – II is correct.
6. Which process is used by a person (perceiver) to deal with conflicting
messages, and conflicting data?
(1) Halo effect (2) The process of checking
(3) Perceptual defense (4) The process of reacting
7. Assertion (A): The physiological needs are essential for living but they are
determined by social environment.
Reasoning (R): These needs may be motivators in backward countries but in a
developed country, these needs are supposed to be satisfied, hence, they may
not be considered motivators.
Codes:
(1) Assertion (A) and Reasoning (R), both are correct, but (R) is not right
explanation of (A).
(2) Assertion (A) and Reasoning (R), both are correct, and (R) is correct
explanation of(A).

521
(3) Assertion (A) is correct, whereas Reasoning (R) is incorrect.
(4) Reasoning (R) is correct, whereas Assertion (A) is incorrect.
8. The basic emphasis of theory of organizational design is on flat
structure, decentralization and provision of informal organization.
(1) Neo-classical theory (2) Modern theory of systems approach
(3) Matrix organization theory (4) Classical theory
9. The result variables as the component of mathematical model for measuring
system‟s effectiveness and efficiency in management science include
(1) Measures of performance (2) Measures of effectiveness
(3) Payoffs and outcomes (4) All the above
10. Assertion (A): Reinforcement plays a central role in the learning process.
Reason (R): Reinforcement strengthens the response preceding it and induces
repetitions of the response.
Codes:
(1) Both (A) and (R) are correct.
(2) (A) is correct and (R) is the right explanation of (A).
(3) (A) is correct but (R) is incorrect.
(4) Both (A) and (R) are incorrect.
11. Most job descriptions contain sections that cover –

(1) Responsibilities and duties (2) Job summary

(3) Working conditions (4) All of the above

12. Match the items of List – I with the items of List – II. The items relate to
evaluation and follow-up of training process.

List – I List – II

a. Results i. Document the learner‟s immediate response to the training.

b. Learning ii. Note supervisor‟s reactions to learner‟s performance


following completion of the training.

522
c. Reaction iii. Use feedback devices or pre and post tests to measure what
learners have actually gained.

d. Behavior iv. Determine the level of improvement in job performance

Codes:

a b c d

(1) iii ii i iv

(2) iv iii i ii

(3) i ii iii iv

(4) iv i iii ii

13. Which one of the following processes allows top management to diagnose
the management styles of supervisors, identify potential, employee problems,
and take corrective action with individual supervisors as necessary?

(1) MBO

(2) Strategic performance appraisal

(3) Organization Development

(4) Upward feedback

14. Statement – I: In competency or skill-based pay, employees are paid for the
range, depth and types of skills and knowledge they are capable of using rather
than for the job they currently hold.

Statement – II: Broad banding results into increase in salary grades and
ranges from 3 or 5 to 10 or more.

Codes:

(1) Only Statement – I is correct.

(2) Only Statement – II is correct.

(3) Both Statements – I and II are correct.

(4) Both Statements – I and II are incorrect.

523
15. Which one of the following is not a labor law related to wages?

(1) The Workmen‘s Compensation Act, 1923

(2) The Payment of Bonus Act, 1965

(3) The Payment of Wages Act, 1936

(4) The Minimum Wages Act, 1948

16.Match the items of List – I with the items of List – II:

List – I List – II
a. Net present value i. Number of years required to recover the original cash
outlay invested in a project.
b. Payback period ii. It is the rate of return which equates the present value of
anticipated net cash flows with the initial outlay.
c. Internal rate of return iii. It is found out by dividing the average after-tax
profit by the average investment.
d. Accounting rate of return iv. It is the difference between the present value of
cash inflows and present value of cash outflows.
Codes:

abcd

(1) iv iii ii i

(2) iii i iv ii

(3) iii iv i ii

(4) iv i ii iii

17. An employee borrowed a 3 year loan of ` 10,000 at 9% from his employer


to buy a motorcycle. If employer requires three equal end-of-year repayments,
then the annual installment will be .

(1) Rs3, 633 (2) Rs3, 951

(3) Rs3, 333 (4) Rs4, 233

18. Match the items of List – I with the items of List – II:

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List – I List – II

a. M.M. Hypothesiswithouttaxesi. The cost of debt and cost of equity are


assumed tobe independent to the capital structure.

b. Net operating incomeapproachii. In the absence of taxes a firm‘s market


value andthe cost of capital remain invariant to the capitalstructure changes.

c. M.M. Hypothesis undercorporatetaxesiii. The cost of equity is assumed to


increase linearlywith leverage.

d. Net income approach iv. The value of the firm will increase with debt due
tothe deductibility of interest charges for taxcomputations and the value of the
levered firm willbe higher than the unlevered firm.

Codes:

abcd

(1) ii iii iv i

(2) ii i iv iii

(3) i ii iii iv

(4) iii iv i ii

19.Explicit Resale Price Valuation method pre-supposes that an investor keeps


the share only for few years and eventually sells the shares. The value of the
share, therefore, depends upon which of the following?

(I): The stream of dividends expected during investor‟s ownership.

(II): The price expected to be realized whenever investor sells the share.

Codes:

(1) (I) is true, but (II) is false.

(2) (I) is false, but (II) is true.

(3) Both (I) and (II) are true.

(4) Both (I) and (II) are false.

525
20. It is an act of acquiring effective control by one company over assets or
management of another company without any combination of companies?

(1) Consolidation (2) Acquisition

(3) Merger (4) None of the above

21.Out of the following, identify the key constituents for performance


marketing of Holistic marketing dimensions:
(a) Customers
(b) Brand and Customer equity
(c) Employees
(d) Ethics
(e) Environment
(f) Sales revenue
(g) Financial community
Codes:
(1) (a), (b), (c) and (d) (2) (b), (d), (e) and (f)
(3) (c), (e), (f) and (g) (4) (a), (c), (f) and (g)

22. Which one of the following is a potential drawback of multibranding?


(1) The company‘s resources may be spread over too many brands.
(2) Consumers may become confused about the image of the main brand.
(3) An over-extended brand name might lose its specific meaning for
consumers.
(4) Different product features can appeal to consumers with different buying
motives.
23. When a firm improves the quality and increases the price of a product in
relation to a competitor making a price reduction, the firm is
.
(1) Moving its brand into a higher price-value position
(2) Changing its target market
(3) Moving its brand into a less competitive position
(4) Adversely positioning its product

526
24. Which one of the following explains “the knowledge and courtesy of
employees and their ability to convey trust and confidence”?
(1) Empathy (2) Responsiveness
(3) Reliability (4) Assurance
25. Match the items of List – I with the items of List – II:
List – I List – II
a. Rich-media ads i. online ads that appear between screen
changes on a website, especially while a new screen is loading.
b. Pop-ups ii. Display ads that use eye-catching techniques
such as float, fly, and snapback.
c. Interstitials iii. Ads that users can block through the use of
applications developed by web browser providers.
Codes:
abc
(1) i ii iii
(2) ii i iii
(3) ii iii i
(4) iii i ii
26. Statement – I: Operation research is the application of scientific methods to
the study of alternatives in a problem situation with a view to providing
qualitative basis for arriving at an optimum solution in terms of goal sought.
Statement – II: Operation research is a quantitative commonsense
embracing observation, experiment and reasoning.
Codes:
(1) (I) is correct but (II) is incorrect.
(2) Both (I) and (II) are correct.
(3) Both (I) and (II) are incorrect.
(4) (II) is correct but (I) is incorrect.
27. Match the items of List – I with List – II:
List – I List – II

527
a. PERT i. Strategies
b. CPM ii. Events
c. Game theory iii. Network
Codes:
a b c
(1) i ii iii
(2) ii iii i
(3) iii ii i
(4) iii i ii
28. Statement – I: – X-chart, np-chart and R-chart are the techniques used for
product control under Statistical Quality Control.
Statement – II: Operating characteristic curve helps determine whether a
particular acceptance sampling plan meets both the product‟s and the
consumer‟s risk requirements.
(1) Both the statements are correct.
(2) Both the statements are incorrect.
(3) Statement – I is correct while Statement – II is incorrect.
(4) Statement – I is incorrect while Statement – II correct.
29. Statement – I: When there are a large number of decision variables (more
than three) and constraints, iterative mathematical procedures like simplex
method can be used for product-mix decisions.
Statement – II: Monte Carlo is an approach for simulating the probability distribution
by associating and then selecting random numbers.
(1) Both the statements are correct.
(2) Both the statements are incorrect.
(3) Statement – I is correct while Statement – II is incorrect.
(4) Statement – I is incorrect while Statement – II is correct.

528
30. In the context of work study, an element is rated as 120% and the actual
readings (in minutes) are as under: 0.05, 0.06, 0.05, 0.05, 0.05, 0.06, 0.06, 0.05,
0.06, 0.06, what is the normal time for the element?
(1) 0.055 minutes (2) 0.060 minutes
(3) 0.066 minutes (4) 0.052 minutes
31. Which of the following sentences are true?
(i) The classical approach to probability theory requires that the total number of
possible outcomes be known or calculated and that each of the outcomes be
equally likely.
(ii) A marginal probability is also known as unconditional probability.
(iii) For three independent events, the joint probability of the three events,
P(ABC)= P(A) × P(B/A) × P(C/AB)
(iv) Two events are mutually exclusive, exhaustive and equally likely, the
probability of either event A or B or both occurring P(A or B) = P(A) + P(B)
Codes:
(1) (i), (ii), (iii) and (iv) are true.
(2) (iii) and (iv) are true.
(3) (i), (ii) and (iv) are true.
(4) (i) and (iii) are true.
32. Match the items of List – I with the items of List – II and indicate the code
of correct matching in connection with probability distributions:
List – I List – II
(Mean and Standard Deviations) (Probability Distribution)
g. np, √npq i. Normal Distribution

h. λ,√λ ii. Binomial Distribution

i. 0, 1 iii. Poisson Distribution


Codes:-
a b c

529
1. i ii iii
2. iii i ii
3. iii ii i
4. i iii ii
33. A researcher wants to test the significance of the differences of the average
performance of more than two sample groups drawn from a normally
distributed population, which one of the following hypothesis- testing tests is
appropriate?
(1) Chi-square test (2) F-test
(3) z-test (4) t-test
34. Match the items of List – I with the items of List – II and indicate the code
of their correct matching with regard to correlation and regression analysis:
List – I List – II
b. γxyσy
σxi. Covariance between X and Y
b. Σ(X – –X) (Y – –Y)
n ⋅σx⋅σyii. Standard error of coefficient of correlation
c. Σ(X – –X) (Y – –Y)
n iii. Regression coefficient of Y on X
variable.
d. 1 – γ2
√n iv. Karl Pearson‘s coefficient of correlation
Codes:-
a b c d
1. i ii iii iv
2. ii i iv iii
3. iii ii iv i
4. iii iv i ii
35. Match the items of List – I with List – II:
List – I List – II
a. Stock files that are placed in warehouse as a record i. Daily report

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b. Process of managing goods in most sensible way ii. Intranet
c. Management information system iii. Master file
d. Log-in allowed to only internal people iv. Stock control
Codes:-
abcd
(1) iii iv i ii
(2) iv iii ii i
(3) iii i iv ii
(4) i ii iii iv
36.The highly competitive industries, particularly in the early stage of product
life cycle, follow which one of the following strategies?
(1) Functional area support strategy (2) Expansion strategy
(3) Diversification strategy (4) Downsizing strategy
37. When highly interrelated variables exist or when it is necessary to choose
from several plausible alternatives, which one of the following should the
strategist integrate in decision making?
(1) Analysis of facts (2) Intuition
(3) Competitor‘s strategy (4) Global perspective
38. Assertion (A): In an industrial structure, the acquisition of an existing firm
in the industry might be a better move than starting-up a new venture.
Reasoning (R): There is evidence that internal development might be preferable
to acquisition because of differences between cultures and shared valued.
Codes:
(1) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(2) Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(3) (A) is correct, but (R) is not correct.
(4) (R) is correct, but (A) is not correct.

531
39. Consider the following statements with reference to Porter‟s five forces
model of competitive analysis:
(a) As rivalry among competing firm intensifies, generally industry profits
decline or in few cases, industry becomes inherently unattractive.
(b) Whenever new firms are allowed to enter a particular industry, the intensity
of competitiveness among firms becomes haphazard.
(c) Generally competitive pressures arising from the substitute products
decrease as the relative price of substitute products decline.
(d) Bargaining power of suppliers affects the intensity of competition.
Codes:
(1) Statements (a) and (b) are false, others are true.
(2) Statements (a) and (d) are true, others are false.
(3) Statements (b), (c) and (d) are true, but (a) is false.
(4) All the statements are true.
40. Match the items given in List – I with the items of List – II:
List – I List – II
a. Vision i. General statements of the company‟s intent.
b. Mission ii. Desired future position of the company
c. Goals iii. Operationalizing of mission
d. Objectives iv. Vivid idealized description of a desired outcome
Codes:
abcd
(1) iv i ii iii
(2) i ii iii iv
(3) ii iii i iv
(4) iii iv ii i
41. Statement – I: VED analysis is meant for project maximization.
Statement – II: Network analysis is independent of planning process.

532
Codes:
(1) (I) is correct but (II) is incorrect.
(2) (II) is correct but (I) is incorrect.
(3) Both (I) and (II) are correct.
(4) Both (I) and (II) are incorrect.
42. Match the items of List – I with List – II:
List – I List – II
a. A promotion assistance for development of Khadi i. SRUTI
b. A scheme of fund for registration of traditional industries ii. ISEC
c. Interest subsidy eligibility for all institutions registered
under KVIC iii. MDA
Codes:-
a b c
1. iii i ii
2. iii ii i
3. i iii ii
4. i ii iii
43. Under the Sick Industrial Companies (Special Provisions) Act, 1985, the
public sector companies were covered from which year?
(1) February, 1994 (2) January, 1990
(3) December, 1991 (4) None of the above
44. Industrial Reconstruction Bank of India (IRBI) which was reconstituted
into a full-fledged all-purpose developmental financial institution with effect
from March 27, 1997 was renamed as .
(1) Small Industrial Development Bank of India
(2) Industrial Investment Bank of India Ltd.
(3) Industrial Finance Corporation of India
(4) Board of Industrial and Financial Reconstruction

533
45. Non-availability of required project planning capability is due to
.
(1) Poor general management
(2) Poor professional management
(3) Poor entrepreneurial management
(4) Poor marketing management
46. Statement – (I): Ethical decision making is a very tough prospect in this
„dog-eat-dog‟ world. All will have to fall in and play fair.

Statement – (II): In this age of liberalization and globalization, the old dirty
games and ethical conduct will no longer be accepted.
Codes:

(1) Statement (I) and (II) both are incorrect.

(2) Statement (I) and (II) both are correct.

(3) Statement (I) correct, (II) incorrect.

(4) Statement (I) incorrect, (II) correct.

47. The three basic principles of business ethics are shown by which one of the
following?

(1) Utilitarianism, social commitment and reputation

(2) Utilitarianism, societal reputation and justice

(3) Utilitarianism, principle of right and principle of justice.

(4) Principle of right, principle of justice and social commitment

48. Gandhian concept of social responsibility is denoted by which one of the


following?

(1) Social commitment concept

(2) Trusteeship concept

(3) Sustainable development concept

(4) Welfare concept

534
49. CII Committee on Corporate Governance with SEBI as the Custodian of
investors constituted on 7th May 1999 is known by which one of the following?

(1) Dr. J.J. Irani Committee

(2) Kumar Mangalam Birla Committee

(3) Narayan Murti Committee

(4) Working group on the Companies Act

50. Which one of the following denotes good choices of ethical decision
making?

(1) (i) take choice seriously

(ii) Good decisions are both ethical and effective

(iii) Discernment and discipline

(2) (i) ethical actions

(ii) Discernment and discipline

(iii) Stage of social welfare

(3) (i) take choice seriously

(ii) Improve ethical decision

(iii) Discernment and discipline

(4) (i) good decision are both ethical and effective

(ii) Take choice seriously

(iii) Ethical actions

535
UGC NET PAPER II DECEMBER 2015
1. Which one of the following assumptions is not related to consumer behavior
based on the cardinal utility approach?
1. Rationality
2. Diminishing marginal utility of money
3. Utility cardinally measurable
4. Maximization of satisfaction with limited money income
2. Statement 1:- A rectangular hyperbola shaped demand curve has uniform
slopes on all its points.
Statement 2:- If the price elasticity is equal to utility, the marginal revenue
corresponds on all its points.
Code:-
1. Both the statements are correct.
2. Both the statements are incorrect.
3. Statement 1 is correct while Statement 2 is incorrect
4. Statement 1 is incorrect while Statement 2 is correct
3. Match the items of List I with the items of List II and find the correct combination: -
List I List II
(Market Structure) (Nature of Industry prevalent)
(a) Perfect Competition (i) Aluminum and passenger cars
(b) Oligopoly (ii) Public Utilities like Telephone and
Electricity
(c) Monopoly (iii) manufacturing: T.V. Sets, Refrigerators
(d) Monopolistic Competition (iv) Farm Products: Grains
Code:-
1. (i) (ii) (iii) (iv)
2. (iv) (i) (ii) (iii)

536
3. (iii) (iv) (i) (ii)
4. (ii) (iii) (iv) (i)
4. Statement 1:- In general, the NPV and IRR methods lead to the same acceptance or
rejection decision when a single project is involved.
Statement 2: - The inconsistency in ranking of competing projects as per the
NPV and IRR methods lies in the implicit assumptions with regard to different
rates of returns on reinvestment of intermediate cash flows.
Code:-
1. Both the statements are correct.
2. Both the statements are incorrect.
3. Statement 1 is correct while Statement 2 is incorrect
4. Statement 1 is incorrect while Statement 2 is correct
5. Which one of the following is not covered in macro-economic?
(1) Performance of the entire economy
(2) Price and output determination of a commodity
(3) Factors and forces of economic fluctuations
(4) Monetary and fiscal policies
6. Match the below mentioned aspects with their main behavioral
disciplines:
AspectsBehavioral discipline
(a) Leadership and stress management (i) Psychology
(b) Group conflict management (ii) Anthropology
(c) Cross-cultural analysis (iii) Sociology and Psychology
(d) Power (iv) Political science
Codes:
a bcd
5. iv i ii iii
6. ii iii I iv
7. i iv ii iii

537
8. iv ii iii i
7.
Theoperantconditioningorlearningapproachtobehaviorisbasedon
_.

538
(1) Lawofreinforcement(3)Lawofreproduction
(2) Law of effect (4) Law of expectations

8. The principles by which the process of perceptual organization works was first
identified by Max Wertheimer in the year .
(1) 1918 (2) 1933 (3) 1924 (4) 1923
9. The leadership theory of describes that effective group
performance depends on the proper match between the leaders‟ style if interacting with
his subordinates and the degree to which the situation gives control and influence to the
leader.
(1) Iowa State Leadership Studies‘; Ronald Lippitt and Ralph K. White
(2) Managerial Grid‘; Blake and Mouton
(3) Trait Theory‘; Stodgill and Barnard
(4) Contingency Model‘; Fred Fiedler
10. When one individual or group wins at the expense of another individual or group, it
is termed as .
(1) Zero-sum conflict (3) Line-staff conflict
(2) Non-zero sum conflict (4) Formal-informal conflict
11. Which one of the following statements is not true in the case of Human
Resource Management?
(1) It performs developmental function (2) Employees are motivated by salary

(3) It is proactive in nature (4) It consists of various sub-systems

12. Match the items given in the ListI and ListII and choose the correct option:-

ListIListII

e. Personnel replacement chart (i) A chart prepared for each position in a


company to show possible replacement candidates and their qualifications
f. Job posting (ii) The ongoing process of systematically
identifying, assessing and developing organizational leadership to enhance
performance
g. Succession planning (iii) Company records showing
present performance and promotability of inside candidates for the most
important positions

539
h. Position replacement card(iv)Publicizing an open job to employees and listing its
attributes, like qualifications, supervisor, working schedule, etc.

Codes:-

(a)(b) (c) (d)

e. (ii) (i) (iii) (iv)


f. (iii) (i) (iv) (ii)
g. (iv) (ii) (i) (iii)
h. (iii) (iv) (i) (ii)

13. Which one of the following training methods is not a managerial „on-the-job
training method?

(1) Coaching (3) Job Rotation

(2) Action Learning (4) Management Games

14. to deal with employee indiscipline provides the offender every


opportunity to state his side of the case.

(1) Punitive approach (3) Humanistic approach

(2) HRD approach (4) Judicial approach

15. Which one of the following is a disadvantage of Critical Incident Method as a tool
of performance appraisal?

(1) Difficult to rate or rank employees relative to one another

(2) Time - consuming

(3) Can cause disagreements among employees and may be unfair if all employees are,
in fact, excellent

(4) Employee‘s appraisal results depend on employer‘s choice of cut-off points

16.If raw materials are in store for 2 months, processing time 2½ months, finished goods
remain in store for 15 days, debtors are allowed 60 days‟ credit and credit received
from suppliers of raw material is one month, the operating cycle period is:

(1) 7 months (2) 6 months (3) 6½ months (4) 5 months

540
17. Which of the following is not general disclosure requirement under accounting
standard-14?

(1) Name and nature of Business (3) Accounting method followed

(2) Description and number of shares issued (4)Particulars of scheme sanctioned

18. Under the Modified Accelerated Cost Recovery System (MACRS) an asset in the
“5 year property class” would typically be depreciated over how many years?

(1) 4 years (2) 5 years (3) 6 years (4) 7 years

19. According to the concept of financial signaling, management behavior results in


new debt issues being regarded as “ news” by investors.

(1) Non-Event (2) Bad (3) Risk Neutral(4) Good

20. The Exchange of interest and/or principal payment between two parties is called:
(1) Swap (2) In the money (3) Forward (4) Put option

21. From the following set of information, which combination is correct to define the
process of perception in order to understand consumer behavior?
(a) Selective Attention (c) Selective Retention
(b) Selective Distortion (d) Selective Apprehension
Code:
(1) Only (a) and (d) are correct (3) Only (b), (c) and (d) are correct
(2)Only (a), (b) and (d) are correct (4)Only (a), (b) and (c) are correct

22. When the company‟s Salesperson contacts the customer from time to time with
Suggestions about improved uses of the product or additional new range of products,
then it is called as:
(1) Proactive Marketing (3) Reactive Marketing
(2) Accountable Marketing(4) Relationship Marketing
23. A state of demand where major part of the market dislikes the product and may
even pay a price to avoid it, may be called as:
(1) Declining Demand (3) Negative Demand
(2) Overfull Demand (4) Distractive Demand

541
24. When the Companies pay less attention to its own costs or demands and bases its
price largely on competitors‟ prices, then it is known as:
(1) Value pricing (3) Image pricing
(2) Going rate pricing (4) Psychological pricing

25. from the given columns which of the combinations best describe the concepts of
product hierarchy?
(a) Need family
(b) Product family
(c) Product class
(d) Product line
(i) The core need that underlines the existence of a product family
(ii) Group of items within a product line that share one of several possible forms of the
product
(iii) Group of products within the product family recognized as having a certain
functional coherence
(iv) All the product classes that can satisfy a core need with reasonable
effectiveness
Code:
(1) Only (a) - (i), (b) - (iv) and (c) - (iii) are correct
(2) Only (a) - (i), (b) - (iii) and (c) - (iv) are correct
(3) Only (b) - (iv), (c) - (iii) and (d) - (ii) are correct
(4) (a) - (i), (b) - (iii), (c) - (ii) and (d) - (iv) are correct

26. An input (such as variable cost per unit or fixed cost) for a model is an example of
a(n) ?
(1) Stochastic variable (3) Algorithm
(2) Decision variable (4) Parameter
27. Match the items of List I and List II and indicate the correct code: List
I List II
Operations Management Functions Activities
(a) Capacity planning (i) Setting policy guidelines and procedural details
of making a watch
(b) Quality Management (ii) the steering of the cars loaded in trucks reaches the
assembly line every morning and evening

542
(c) Process Design (iii) Establishing rules and policies of which tablets are to be
accepted and others not to be
(d) Location and Layout of (iv) A hospital can largely serve 500 patients at
any time facilities
Code:
(a) (b) (c) (d)
(1) (iv) (iii) (i) (ii)
(2) (iv) (i) (iii) (ii)
(3) (ii) (iii) (i) (iv)
(4) (ii) (i) (iii) (iv)
28. Car enters the drive-through of a fast food restaurant to place an order, and then it
proceeds to pay for the food, and pick up the order. This is an example of:
(1) A multiphase system (2) a multichannel system
(3) Amultiguaue system (4) a multiphase and multichannel system
29. A manufacturer is considering five alternative locations for setting up its factory.
Using the information given in the table obtain a ranking and tell the best location for
setting the factory?
Table:
Factors Relative Location Location Location Location Location
Weight 1 2 3 4 5
Availability 0.28 20 40 55 35 60
of
Infrastructure
Size of 0.18 30 30 80 60 40
Market
Industrial 0.15 80 30 50 60 50
Relation
Tax Benefits 0.09 80 20 20 20 10
Availability 0.09 70 70 50 50 45
of cheap
Labor
Nearness to 0.20 20 40 60 50 90
port

543
Code:
(1) Location 2 (3) Location 4
(2) Location 3 (4) Location 1 and Location 5
30. If the project completion time is normally distributed and the due date for the
project is greater than the expected completion time, then the probability that the project
will be finished by the due date is:
(1) Undeterminable without more information
(2) less than 0.50
(3) Equal to 0.50
(4) Greater than 0.50
31.Match the items of List – I with those of List – II and choose the correct code:
List – I
(a) The probability of two events occurring together or in succession
(b) The probability of occurring one event given that another event has occurred
(c) The probability of occurring a single event
(d) The probability revised in the light of additional information
List – II
j. Marginal probability
ii. Posterior probability
iii. Subjective probability
iv. Joint probability
v. Conditional probability
Code:-
A b c d
1. iv v i iii
5. v iv ii iii
6. v iv iii i
7. iv v i ii

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32. Consider the following statements relating to correlation and regression analysis:
Statement I: Correlation is independent of change of scale, but not of origin Statement II:
Correlation denotes co-variability between the variables
Statement III: Regression is a relative measure of relationship between variables
Statement IV: Regression is independent of change of origin but not of scale
Choose the correct option:
(1) Statements I, II and IV are correct
(2) Statements II, III and IV are correct
(3) Statements II and III are correct
(4) Statements II and IV are correct
33. Which of the following is not a technology driver for an information system?
(1) Knowledge asset management (2) Enterprise applications
(3) Object technologies (4) Networks and internet
34. NegandhiEstafen‟ is recognized as a good model for the analysis of:
(1) Organizational effectiveness
(2) Management effectiveness
(3) Organizational growth
(4) Organization behavior
35. A self-contained internet program designed to be used in a specific
environment is:
(1) Active – X (3) Applet
(2) Application programme interface (4) Artificial intelligence
36.A company manages multiple strategies for it‟s multiple markets and multiple
products through which one of the following?
(1) Strategic Planners (3) Strategic Windows
(2) Strategic Business Units (4) Strategic Technology

545
37. Match the items of List – I with List – II:
List – I List – II
(a) Technical Innovation Strategy (i) foreign producer gives a straight copy

(b) Product Adaptation Strategy(ii) Perceived and demonstrable superior products

(c) Availability and Security Strategy(iii) Modifications to existing products

(d) Total Adaptation and Conformity Strategy(iv) Overcome transport risk by


countering perceived risks
Code:
a b c d
1. iii ii i iv
2. ii iii iv i
3. i ii iii iv
4. ii iii i iv
38. Only diversified company with a balanced portfolio can use its strengths to truly
capitalize on its growth opportunities. Hence the balanced portfolio contains:
(1) Stars whose high share and high growth assure the future
(2) Cash cows that supply funds for their future growth
(3) Question marks to be converted into stars with the added funds
(4) All of the above
39. Porter‟s Generic Strategies identified three basic categories of strategies to
include which one of the following combinations?
(1) High Cost Producer, differentiation and cost control
(2) Low Cost Producer, differentiation and focused Niche
(3) Specific strategic issues, vertical integration strategies and supply strategy
(4) Managerial resources, profitability and focused Niche
40. The stages of corporate development provide a way for the strategic manager to
analyze:
(1) Personal objectives, entrepreneurial skill
(2) Managerial abilities, opportunity and threats

546
(3) Frequently encountered version, functional management
(4) Competitiveness, aggressiveness
41. Which of the following are included as external factors affecting industrial
sickness?
(a) Changes in fiscal and monetary policies
(b) Price and distribution
(c) Non-availability of inputs
(d) Industrial relations
(e) Capital market fluctuations
Code:
(1) (a), (b), (c) and (d) (3) Only (a), (b) and (c)
(2) (b), (c), (d) and (e) (4) (a), (b), (c), (d) and (e)
42. Statement (I): - “Motivation is a continuous, complex and dynamic process”.
Statement (II):- “As compared to other industries, extra motivation is required in service
sector industries”.
(1) Statement (I) is correct but Statement (II) is incorrect.
(2) Statement (II) is correct but Statement (I) is incorrect.
(3) Both the Statements (I) and (II) are correct.
(4) Both the Statements (I) and (II) are incorrect.
43. Assertion (A):- The function of entrepreneurs is to reform or revolutionize the
pattern of production by exploiting an invention or, more generally, an untried
technological possibility for producing a new commodity or producing an old one in a
new way.
Reasoning (R): - Lack of innovations will usually reduce the life span of a product and/or
service.
Code:
(1) Assertion (A) and Reasoning (R), both, are correct, and (R) is correct explanation of
(A).
(2) Assertion (A) and Reasoning (R), both, are correct, but (R) is not right explanation
of (A).
(3) Assertion (A) is correct, whereas Reasoning (R) is incorrect.
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(4) Reasoning (R) is correct, whereas Assertion (A) is incorrect.
44. A business idea becomes a good business opportunity when it covers which four of
the following?
(a) Attractiveness (b) Foreign Collaborations
(c) Political Support (d) Timeliness
(e) Durability (f) Value addition to end user
Code:
(1) (a), (b), (d) and (e) (3) (a), (d), (e) and (f)
(2) (a), (b), (e) and (f) (4) (b), (c), (e) and (f)
45. Which of the following are correct for an entrepreneur?
(a) Is an independent person
(b) Makes his/her own decisions
(c) has the opportunity of realizing dreams
(d) Has good financial strength
(e) Has undergone a systematic business training
(f) Has immense job satisfaction
Code:
1. (a), (b), (c) and (d)
2. (a), (b), (c) and (e)
3. (a), (b), (c) and (f)
4. (a), (b), (d) and (f)
46. Assertion (A): Social audit has been defined as a commitment to systematic
assessment of and reporting in some meaningful, definable domain of the company‟s
activities that have social impacts.

Reasons (R): The Companies Act 2013 has accorded statutory recognition of the social
responsibility of a corporate entity and gives option to provide a percentage of profit for
the purpose as per discretion of the board.

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Code:

1. Both (A) and (R) are correct, and (R) is the right explanation of (A).
2. Both (A) and (R) are correct, but (R) is not the right explanation of (A).
3. (A) is correct but (R) is not correct.
4. (R) is correct but (A) is not correct.

47. Which one of the following of „Immanuel Kant‟s‟ Principle, known as


categorical imperatives, is a guide to managerial action?

(1) The managers should be open to share his/her corporate secrets, individual traits
with external agencies.

(2) The managers be free and open to share his individual knowledge and experience for
community‘s gain.

(3) A person‘s action is ethical only if that person is willing for that same action to be
taken by everyone who is in a similar situation.

(4) A person always treats another human being simply as a means to an end.

48. Teleology in ethics supports which one of the following the most?

(1) It is duty-based ethics and measures whether an action is right or wrong.

(2) It measures whether the results of the actions are right or wrong.

(3) It focuses on purpose of each action and judges the consequences of an action.

(4) It focuses on neutrality and fidelity of an action.

49. Assertion (A): Deontology is duty-based ethics. It is an approach to ethics that


addresses whether the motives behind certain action are right or wrong.

Reason (R):Deontology focuses on whether the results of the actions are right or wrong.

Code:

(1) Both (A) and (R) are correct

(2) (A) is correct and (R) is the right explanation of (A)

(3) (A) is correct but (R) is not the right explanation of (A)

(4) Both (A) and (R) are incorrect

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50. Assertion (A) : Rules notified by the Ministry of Corporate Affairs (MCA) Sec. 149
of the Companies Act mandates that a listed company having a paid up share capital of
Rs100 crore or more shall appoint at least one woman director on its board.

Reasons (R):The corporate entities wanted to enhance gender equality and woman
empowerment in corporate governance and company administration.

Code:

(1) Both (A) and (R) are correct.

(2) (A) is correct and (R) is the right explanation of (A).

(3) (A) is correct but (R) is not the right explanation of (A).

(4) Both (A) and (R) are incorrect.

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UGC NET PAPER II JUNE 2015
1. If the demand for using the Noida express way is given by:
Q= 40,000-2500P
Where Q is the number of users (vehicles) and P is the amount of toll collected per unit
who uses the express way. In light of this information which of the following is true:
(1) At P=Rs 6 and Q=14,000; demand is price inelastic.
(2) At P=Rs7 and Q=16,500; demand is unitary elastic.
(3) At P=Rs4 and Q=9,500, demand is price elastic.
(4) All of the above
2. If a 100% scale-efficient plant has 92% technical efficiency and 88.5% allocative-
efficiency, then its overall efficiency will be:
(1) 88.5% (2) 90.25% (3) 93.0% (4) 81.42%
3. The market share data for an industry, comprising five companies, is given below:
Company Market Share(%)
A 35
B 25
C 18
D 12
E 10
This industry‘s three-firm Herfindahl-Hirschman index shall be:
(1) 0.234 (2) 0.217 (3) 0.151 (4) 0.0175
4. For economy which consists of single automobile maker and that in year 2014,
30,000 vehicles are produced with an average price of ` 5 lakh. For this economy what
would be the increase in the nominal GDP for 2015 compared with 2014 with the 4%
greater automobile production and 8% inflation.
(1) 4.0% (2) 12.0% (3) 6.0% (4) 12.32%

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5. Demand policies targeted to reduce the unemployment become ineffective in
presence of the following:
(1) Vertical Phillips curve
(2) Money illusion and ignorance among workers
(3) Horizontal Phillips curve

(4) None of the above

6. An individual‟s involvement with, satisfaction and enthusiasm for, the work he


does, is known as:
(1) Employee engagement (3)Job satisfaction
(2) Job involvement (4) Organizational commitment
7. Which of the following is not perceived as the basic element of motivation?
(1) Direction (2) Intensity (3) Performance (4) Persistence
8. A theory of motivation that is concerned with the beneficial effects of intrinsic
motivation and the harmful effects of extrinsic motivation is termed as:
(1) Cognitive Evaluation Theory (3) Self-determination Theory
(2) Self-efficiency Theory (4) Two-factor Theory
9. Match the items of List I with those of List II.
List I List II
Behavioral science Contribution
(b) Anthropology (i) Attitude change
(b) Psychology (ii) Attitude measurement
(c) Social psychology (iii) Conflict
(d) Sociology (iv) Organizational culture
Codes:
(a) (b) (c) (d)

(1) (i) (ii) (iii) (iv


(2) (iv) (ii) (i) (iii)
(3) (iv) (ii) (iii) (i)
(4) (ii) (iv) (iii) (i)

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10. A relatively stable set of characteristics that influence an individual‟s behavior is
known as:
(1) Attitude (2) Learning (3) Perception (4) Personality

11. Assertion (A): The more differentiated the HR environment, the more
uncertain it shall be:

Reason (R): Organizations are dependent in an environment where human


resources are not widely available.

(1) Both (A) and (R) are correct

(2) (A) is correct and (R) is the right explanation of (A)

(3) (A) is correct but (R) is not the right explanation of (A)

(4) Both (A) and (R) are incorrect

12. Which one of the following is a type of interview where a series of job-related
questions are asked that focus on how the candidate would behave in a given situation?

(1) Behavioral interview (3) Situational interview

(2) Job-related interview (4) Structured interview

13. Consider the following statements:

(a) Sensitivity training was developed by Kurt Lewin

(b) In-basket exercise is a simulated training method

(c) Depth interview is also known as Directive Interview

(d) Job evaluation is carried out for promoting job satisfaction

Which of the above statements are true?

(1) Only (a) and (c) (3) (a), (b) and (c)

(2) Only (a) and (b) (4) (b), (c) and (d)

14. Behaviorally Anchored Rating Scale (BARS) consists of the following steps:

(a) Reallocate incidents

(b) Develop performance dimensions

(c) Generate critical incidents

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(d) Develop final statements

The correct chronological order of these steps is:

(1) (a), (b), (c), (d) (3) (c), (b), (a), (d)

(2) (b), (c), (a), (d) (4) (a), (c), (b), (d)

15. Consider the following elements:

(a) Actors (b) Inputs (c) Context (d) Output (e) Ideology

Which of these are not the elements of John Dunlop‟s Framework of Industrial
Relatives System?

(1) (a) and (b) (2) (a) and (e) (3) (b) and (d) (4) (a) and (d)

16. State the price of the share for the year t, if the rate of growth of the firm is 10%,
EPS and DPS for the year t11, are ` 3 and ` 2 respectively and the investors‟ required
rate of return is 20%.

(1) Rs30 (2) Rs20 (3) Rs25 (4) Rs10

17. In which of the following appraisal criteria of capital budgeting, the use of
varying opportunity cost of capital as a discount factor is possible?

(a) NPV (b) IRR (c) Pay-back Period (d) ARR

(1) Only (a) is correct. (3) (b) and (d) both are correct.

(2) (a) and (b) both are correct. (4) Only (c) is correct.

18. According to the CAPM model, the cost of equity is represented by:

(1) Rm1 (Rm2Rf) bj (3) bj1(Rm2Rf)Rm

(2) Rf1(Rm2Rf)bj (4) Rm1Rf1bj

Where R indicates market rate of return, R indicates risk free rate of return and b
indicates beta of stock j

19. Anticipated annual dividend divided by the market price of the stock is
referred as:

(1) Dividend Pay-out (3) Return on Equity

(2) Dividend yield (4) Regular dividend

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20. If the existing shareholder does not exercise his/her right or does not sell the
right entitlement:
(1) his/her wealth will remain unaffected

(2) his/her wealth will increase

(3) his/her wealth will decrease

(4) his/her wealth may increase or decrease

21. What are the four main components of holistic marketing?


(1) Integrated Marketing, Internal Marketing, Product Positioning and Performance
Marketing
(2) Integrated Marketing, Relationship Marketing, Social Marketing and Performance
Marketing
(3) Relationship Marketing, Integrated Marketing, Internal Marketing and
Performance Marketing
(4) Relationship Marketing, Integrated Marketing, Internal Marketing and Social
Marketing

22. Which of the following category of goods and services is most likely to require an
aggressive use of the selling concept?
(1) Complementary Goods (3) Specialty Goods
(2) Luxury Goods (4) Unsought Goods

23. The type of marketing that is the most recent to emerge is:
(1) Person marketing (3) Services marketing
(2) Product marketing (4) Social marketing

24. According to the theory, marketers can enhance demand for a


product by associating it with strong drives, using motivating cues and providing
positive re-enforcement.
(1) Demand theory (3) Psychological theory
(2) Learning theory (4) Two-factors theory

25. The most scientifically valid research is:


(1) Experimental Research (3) Focus-Group Research
(2) Observation Research (4) Survey Research

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26. Which of the following statements is not correct?

(1) Product Layout generally has continuous and Mass Production, mainly assembly
function.
(2) Process Layout generally has Intermittent, Job-Shop, Batch Production, mainly
fabrication function.
(3) Product Layout usually has general purpose equipments.
(4) Process Layout is generally driven by fluctuating demand.

27. Six-SIGMA quality indicates:


(1) 2.4 defects per thousand (3) 3.4 defects per thousand
(2) 2.7 defects per thousand (4) 3.7 defects per thousand
28. A manufacturing firm has four work stations, A, B, C and D in series with
individual capacity of processing 450, 390, 360 and 400 units per day respectively and
the actual output of the firm is 306 units per day. The system capacity and system
efficiency of the firm shall respectively be:
(1) 400 and 100% (2) 450 and 120%
(3) 360 and 85% (4) 390 and 95%
29. In the simplex method of solving an LP Problem, the product-mix column of the
initial solution contains:
(1) Artificial variables only (3) Slack and artificial variables only
(2) Slack variables only (4) Real variables only
30. If the optimal solution of an LP Problem is degenerate then:
(1) The problem has multiple optimal solutions
(2) The solution is not feasible
(3) The solution is useless to the manager
(4) None of the above
31. If your score in an exam was 80, with a mean of 60, what would be the
standardized score for this exam if the standard deviation is 15?
(1) 1.33
(2) 1.25
(3) 1.52

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(4) 1.72
32. Spurious relationship between two variables refers to:
(1) Very poor relationship between the variables.
(2) Statistically insignificant relationship between the variables.
(3) Relationship happens only due to third variable which is common to both the
variables.
(4) The relationship which is impossible to measure.
33. In a medical test, where the null hypothesis is: „The patient does not have the
disease‟ and the alternative hypothesis is: „ the patient has the disease‟. Suppose apatient
has a disease and needs treatment. In the hypothesis testing process, which of the
following errors is more serious than the others?
(1) Type - I error (3) Both Type - I and Type - II error
(2) Type - II error (4) r - error
34. Decision support system does not use:
(1) Analytical models
(2) Specialized databases
(3) File server
(4) Computer - based modeling process
35. Give the correct order of the stages in System Development.
(1) Testing---->Programming---->Systems----->Design---->Systems----> Analysis----
>Conversion---->Production and Maintenance
(2) Programming---->Testing---->Systems Analysis---->Systems Design ----
>Conversion ---->Maintenance
(3) Systems Analysis---->Systems Design---->Programming---->Testing ----
>Conversion---->Production and Maintenance
(4) Productionand Maintenance---->Testing---->Conversion----->Programming ----
>Systems Design---->Systems Analysis
36. Which of the following statements is correct?
(1) Balanced score cards always report using the same time periods as the financial
accounting system.

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(2) One fundamental idea of balanced score card is to increase the number of
performance indicators used to manage the business.
(3) Organizations sometimes use a ―traffic light‖ system on their balanced score card to
help them priorities their activities.
(4) The fundamental idea of balanced score cards is to create corporate strategy.
37. What metaphor is used to describe the competitive space where product are not yet
well defined, competitors are not well-organized and the market is relatively unknown?
(1) Blue Lagoon
(2) Blue Ocean
(3) Red Sea
(4) Red Ocean
38. Michael E. Porter‟s five generic strategies are :
(1) Differentiation (Best Value). Differentiation (Low Cost), Cost Leadership (Large),
Cost Leadership (Small), Focus
(2) Focus (Large), Focus (Small), Cost Leadership (Small), Cost Leadership (Large),
Differentiation
(3) Cost Leadership (Low Cost), Cost Leadership (Best Value), Differentiation, Focus
(Low Cost), Focus (Best Value)
(4) Cost Leadership (Large), Cost Leadership (Small), Differentiation (Large),
Differentiation (Small), Focus
39. One of the strategic decisions relating to the value chain concerns vertical
integration. This would involve:
(1) Deciding to link all activities using Enterprise Resource Planning.
(2) Deciding whether the activity should be performed within the organization or by a
different firm.
(3) Deciding whether to locate operation in the home country or in a foreign location.
(4) Deciding whether to share certain activities across different products and markets.
40. “Pepsi Co launched a hostile takeover of Pepsi Bottling Group after its $ 4.2 billion
offer was rejected”. Which strategy was used in this case?
(1) Market Penetration (3) Horizontal Integration
(2) Backward Integration (4) Forward Integration

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41. Who viewed entrepreneur as a non-fixed income earner with known costs of
production but uncertain income and therefore, operating at a risk?
(1) Adam Smith (2) Richard Contillon
(3) Jean-Baptiste Say (4) Francis Wolker
42. Which one of the following is not a major area of entrepreneurial innovation as
suggested by Joseph Schumpeter?
(2) Product innovation(3) Market innovation
(2) Process innovation (4) Structural innovation
43. Which one of the following types of entrepreneurs are not proactive in nature and
does not respond much to changes in the environment?
(1) Fabian entrepreneur (3) Drone entrepreneur
(2) Adoptive entrepreneur (4) Innovative entrepreneur
44. SFURTI (Scheme of fund for regeneration of traditional industries) is implemented
by:
(1) Union Ministry of Traditional Industries
(2) National Agricultural cooperative Marketing Federation
(3) Federation of Indian Chamber of Commerce and Industry
(4) Union Ministry of Micro, Small and Medium Enterprises
45. According to the Tiwari Committee report, which one of the following is not an
internal cause of industrial sickness in India?
(1) Lack of manpower planning (3) Excessive expenditure
(2) Lack of control systems (4) Excessive tax policies
46. Which of the following is/are the component(s) of Ethics by field of interest?

(1) Descriptive ethics (3) Meta ethics

(2) Normative ethics (4) All of the above

47. What is the right sequence of four psychological sub-processes in ethical action
given by James Rest?

(1) Moral sensitivity, moral focus, moral judgment, moral character

(2) Moral focus, moral character, moral sensitivity, moral judgment

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(3) Moral sensitivity, moral judgment, moral focus, moral character

(4) Moral character, moral focus, moral judgment, moral sensitivity

48. A new approach Learning Model” which is helpful to strengthen the decision
making process was developed by:

(1) Arthur Rich

(2) Bob Garratt

(3) Christian Wolff

(4) Lord Keynes

49. Assertion (A): Corporate behavior towards stakeholders is an important concept in


practice and a central part of corporate Governance.

Reason (R): It has to be ethical, legal and responsible behavior for organization,
stakeholders and society.

(1) Both (A) and (R) are true.

(2) Both (A) and (R) are false.

(3) (A) is false, but (R) is true.

(4) (A) is true, but (R) is not a correct explanation of (A).

50. CSR is important because:

(1) It influences all aspects of Company‘s operation

(2) It gives company‘s mission and strategy

(3) It increases the general affluence and societal expectation

(4) All of the above

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UGC NET PAPER II DECEMBER 2014
1. In the market-oriented system, for the allocation of resources which one of the
following is the most appropriate conveyor of information?
(A) Finance Ministry (B) Central Bank
(C) Market Price (D) Advertisement Expenditure
2. A company supplies 20 units of a particular product per month, at a price of Rs 10
per unit. If price elasticity of supply is 5, how many units would the company supply at
a price of Rs15?
(A) 50 (B) 70
(C) 40 (D) 5
3. Which characteristic is not likely to be a part of perfect competition?
(A) Absence of interdependence (B) Deadweight loss is non-existent
(C) Strong rivalry (D) Absence of advertisement
4. Match the items given in List – I and List – II by considering which of the following
are macroeconomic issues and which microeconomic ones are:
List – I List – II
a. The level of government revenue i. Microeconomic
b. The rate of inflation ii. Macroeconomic
c. The price of T.V. set
d. The amount saved last year by households
Codes: -
abcd
(A) ii i iii
(B) ii i ii i
(C) i ii iiii
(D) ii iii ii
5. In the recent years, world economy has witnessed the influence of
unconventional monetary policy of the U.S.A. This policy stance is known as
(A) Bank rate (B) Taylor rule

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(C) Reserve requirement (D) Quantitative easing
6. Rita, a young enthusiastic manager has joined an organization as a project
coordinator. The project head counsels her to socialize less with non-management
employees; whereas the product head tells her to learn more about market issues. She
should socialize more with the non-management employees. Rita is confused, she is
facing
(A) Inter-role conflict (B) Intra-role conflict
(C) Interdepartmental conflict (D) Hierarchical conflict
7. List – I consists of Motivation theories and List – II consists of the Motivation
theorists. You have to match them and indicate the correct match as per code:
List – I List – II
a. Two-factor theory i. David McClelland
b. ERG theory ii. Fredrick Herzberg
c. Theory X and Theory Y iii. Douglas McGregor
d. Need theory iv. Clayton Alderfer
Codes:
abcd
(A) ii iv iii i
(B) i ii iii iv
(C) i iv ii iii
(D) iv iii ii i
8. The conflict over content and goals of the work is called
(A) Functional conflict (B) Process conflict
(C) Relationship conflict (D) Task conflict
9. theory of motivation ignores the inner state of the individual and
concentrates solely on what happens when he or she takes some action.
(A) Equity (B) Expectancy
(C) Goal-setting (D) Reinforcement
10. In the “Big Five” personality factors widely accepted personality traits are
mentioned. The trait of being dependable, organized, conforming and persevering on
tasks is called
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(A) Extroversion (B) Conscientiousness
(C) Agreeableness (D) Emotional stability
11. Given below are four statements. Some of the statements are incorrect. You have to
choose the correct one.
(A) A satisfied employee is a motivated employee.
(B) Employees who are happy ―being around‖ are good contributors to the organization.
(C) Motivated employees do not need engagement.
(D) Customer loyalty has been found to be positively correlated with employee
engagement.
12. The author of the book „The World is Flat: A Brief History of the Twenty First
Century‟ is
(A) Thomas L. Friedman (B) RaghuramRajan
(C) Michael Armstrong (D) VineetNayyar
13. ESOP stands for and was developed by
(A) Employee Stock Ownership Plans; Wallace Forbes
(B) Employee Stock Ownership Programs; Louis Kelso
(C) Employee Stock Ownership Plans; Louis Kelso
(D) Employee Share Ownership Programs; Louis Kelso
14. Match items given in List – I, with those in List – II:
List – I List – II
a. Predictive analytics to help
anticipate the result of HR
strategy i. Job Specification
b. Statement of purpose, scope,
duties, task and
responsibilities of job ii. Ernest J. McCormick
c. Position Analysis
Questionnaire iii. Job Description
d. Statement of qualifications and
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qualities required of an
employee to be successful iv. Workforce Analytics
Indicate the correct code:
Codes :
abcd
(A) iv iii ii i
(B) i ii iii iv
(C) i iv ii iii
(D) ii iv i iii
15. Match the items of List – I and List – II:
List – I List – II
a. Procedural Rules i. An interim or final determination of
any industrial dispute
b. Managerial Aspects ii. Terms and conditions of
employment and control on
transfers, promotions etc
c. Substantial Rules iii. Mechanism of dealing with
interpretation and implementation of
agreements
d. Award iv. Assignment of work and adjustment of
workforce
Indicate the correct code:
Codes:
abcd
(A) iv ii i iii
(B) iii iv ii i
(C) i ii iii iv
(D) ii iii iv i
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16. Consider the following two statements:

Statement I:Bond value would decline when the market rate of interest rises. Statement
II: There is a positive relationship between the value of a bond and the interest rate .
Select the correct code:

Codes:

(A) Statement I and Statement II both are correct.

(B) Statement I is correct, but Statement II is incorrect.

(C) Statement II is correct, but Statement I is incorrect.

(D) Statement I and Statement II both are incorrect.

17. Match the following techniques of capital budgeting given in List – I, with one of
the Characteristics given in List – II and select the correct code:
List – I
a. NPV
b. IRR
c. Profitability Index
d. Payback period
List – II
i. Under certain circumstances its reciprocal is a good approximation of the rate of
return.
ii. Shareholder‟s wealth maximization
iii. Possibility of multiple outcomes in single calculation
iv. Measure of projects‟ relative profitability
Codes:
a b c d
(A) i ii iii iv
(B) ii iii iv i
(C) iii iv i ii
(D) iv I ii iii

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18. In the case of redeemable debentures issued at discount and to be redeemed at par,
approximate cost of debenture (before tax adjustment) will be equal to
(A) Rate of interest

(B) Amount of interest divided by issue price

(C) Amount of interest divided by par value

(D) Amount of interest+ [par value – issue price]


Tenure of debenture
-----------------------------------------------------------------
Par value+ issue price

19. While granting the term loan, if lending institution puts a condition to reduce the
debt equity ratio by issuing additional equity share-capital or preference share capital, it
is known as

(A) asset-related restrictive covenant

(B) Cash flow related restrictive covenant

(C) Control related restrictive covenant

(D) Liability related restrictive covenant

20. According to Lintner‟s model of corporate dividend behavior, the dividend for the
year„t‟ is dependent on:

I. earnings per share for the year t

II. Dividend per share for the year t-1

III. Adjustment rate

IV. Target pay-out ratio

V. market price of share

Select the correct code:

(A) I, II and III are correct.

(B) II, III, IV and V are correct.

(C) I, II, III and IV are correct.


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(D) I, II, IV and V are correct.

21. Which of the following concepts holds that consumers prefer the products
which are easily available and are inexpensive?
(A) The product concept (B) The production concept
(C) The selling concept (D) The marketing concept
22. is the added value endowed to a product or service.
(A) Brand equity (C) Brand loyalty
(B) Brand image (D) Brand preference

23. Match the items/persons included in List – I with the items in List – II and indicate
the correct pairing through codes given below:
List – IList – II
a. CCI i. Consumer buying decision process
b. Cognitive dissonance ii. Marketing Myopia
c. Everett M. Rogers iii. Diffusion of Innovation
d. Theodore Levitt iv. iv. Predatory Pricing
Codes:-
a b c d
(D) iv iii ii i
(E) iii iv ii i
(F) i ii iv iii
(G) iv i iii ii

24. The step after „concept testing‟ in the new product development process is
(A) Business analysis (B) Marketing strategy development
(C) Product development(D) Test marketing

25. When the total market expands, the usually gains the most.
(A) Market challenger
(B) Market leader
(C) Market follower
(D)Market niche

26. „Large output per unit of space‟ is an orientation of which type of plant layout?
(A) Product layout
(B) Process layout

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(C) Fixed-Position layout
(D) Cellular layout

27. Which of the following steps is the first step in production scheduling?
(A) Sequencing
(B) Loading
(C) Expediting
(D) Classifying

28. A defence equipment manufacturing company uses bolts at a constant rate of 10000
kg per year. The bolt cost ` 80 per kg and the company estimates that it costs Rs400 to
place an order and the carrying cost of inventory is 10 percent per year. How frequently
should orders for bolts be placed?
(A) 5
(B) 10
(C) 15
(D) 20

29. The number of allocated cells in the optimal solution table of a transportation
problem having m origins and n destinations is
(A) m + n – 1
(B) m + n –1 or more
(C) m + n –1 or less
(D) m + n

30. The co-efficient of artificial variable in a Maximization problem of LP is


(A) M
(B) –M
(C) 0
(D) 1

31. If p = 0.6 for a particular Bernoulli process, the calculation ( 8! ) (0.6)5 (0.4)3
indicates 5!*3!
the probability of happening of
(A) 5 or more successes in eight trials
(B) 3 or more successes in eight trials

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(C) Exactly 5 successes in eight trials
(D) Exactly 3 successes in eight trials
32. Chebyshev‟s theorem provides that at least 89% of the values will lie within ± 3
standard deviations from the mean for
(A) Bell-shaped distributions
(B) Positively-skewed distributions
(C) Negatively-skewed distributions
(D) All distributions
33. How many degrees of freedom should be used to apply chi-square test statistic on a
contingency table, having 5 rows and 4 columns?
(A) 20
(B) 12
(C) 7
(D) 9
34. The and its alternative provide the ability to serve dynamic content to
browsers.
(A) Common Gateway Interface
(B) Cryptography
(C) General Pocket Radio Service
(D) Cellular Digital Pocket Data
35. Which is the most suitable domain extension for an Indian NGO to do e business?
(A) .gov
(B) .com
(C) .org
(D) .us
36. At which level in the company should market-oriented strategic planning begin?
(A) Corporate level

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(B) SBU level
(C) Marketing Department‘s level
(D) Brand Manager‘s level
37. Which of the following statements is not true?
(A) A group of firms following the same strategy in a market is called a ‗strategic
group‘.
(B) The members of strategic group are the key competitors.
(C) The type of competition among them is known as generic competition.
(D) The height of entry barriers differ for each group.
38. In India Proctor & Gamble (P & G) (Home products division) is following the
strategy of
(A) Cost leadership
(B) Differentiation
(C) Broad differentiation
(D) Focused differentiation
39. Today, mobile phones have many features such as camera, GPS, Internet, music
and videorecording. This is an example of
(A) Convertibility of Industries
(B) Combination of Industries
(C) Competition among Industries
(D) Convergence of Industries
40. An organization that is downsizing to reduce cost is implementing a strategy of
(A) Growth
(B) Focus
(C) Renewal
(D) Stability
41. Who propounded entrepreneurship as a theory of business?
(A) Daniel Goleman
(B) Joseph A. Schumpeter
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(C) Thomas A. Coleman
(D) Warren Buffet
42. Who among the following is not the first generation entrepreneur?
(A) DhirubhaiAmbani
(B) Shiv Nadar
(C) K. Anji Reddy
(D) G.D. Birla
43. Which of the following is not a possible route to market entry for a small business
owner/entrepreneur?
(A) Franchise
(B) Corporate Venture
(C) Outright Purchase
(D) Buy-out
44. The number of items which can be exclusively manufactured in the small scale
sector are
(A) 20 items
(B) 35 items
(C) 50 items
(D) 62 items
45. Which of the following is an external reason for the sickness of a small business?
(A) Choice of an idea
(B) Inadequate finance
(C) Volatile business environment
(D) Lack of vertical and horizontal integration
46. In view of competitive global economy, corporations are involved in cost cutting,
corporate restructuring, mergers and acquisitions and downsizing. All these activities
can be carried out successfully only if there is proper

(A) Business Ethics

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(B) Ethical Audit

(C) Corporate Social Responsibility

(D) Corporate Governance

47. Statement (A): Law and moral standards overlap to a certain extent.

Statement (B): Law represents a minimum set of standards for regulating human behavior
in society.

(A) (A) and (B) both are incorrect.

(B) (A) is correct but (B) is not the right explanation of (A).

(C) (A) is correct and (B) is the right explanation of (A).

(D) (A) is incorrect and (B) is a correct statement in isolation.

48. In order to check the growing unethical practices in the field of information
technology, the first cyber law passed in India is

(A) Information Technology Act

(B) Anti-hacking Law

(C) Cyber Law

(D) E-commerce Law

49. Match the items of two lists, indicating the correct code:

List – I List – II

a. Transparency i. All stakeholder groups have the opportunity to


maintain or improve their well-being.

b. Equity ii. The State of being answerable for


decisions and activities to all stakeholders.

c. Sustainability iii. Information freely available and directly


accessible to interested parties.

d. Accountability iv. The effect which action taken in the


present has upon the options available in the future.

Codes:-

572
abcd

(A) iii i iv ii

(B) i ii iii iv

(C) ii iii i iv

(D) iii i ii iv

50. Which of the following is not a principle of CSR?

(A) Protecting Environment

(B) Avoiding price discrimination

(C) Promotional activities

(D) Adopting the labor policies

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UGC NET PAPER II JUNE 2014
1. In case the price (P), quantity (Q), and changes (Δ) are represented by respective
symbols given in the brackets, the price elasticity of demand (Ed) is measured by
(A) Ed = ΔQ / PΔ
(B) Ed = (QΔ/Q) / (PΔ/P)
(C) Ed = ΔP/ΔQ
(D) Ed = (ΔP/P) / (ΔQ/Q)
2. Law of Diminishing Return applies when the gaps among the successive
„multiple-level of output‟ isoquants
(A) Decreases(B) remains constant
(C) Increases(D) remains irregular
3. In case the demand elasticity under imperfect competition is unity, the marginal
revenue will be
(A) more than utility, but less than infinity.
(B) Equal to unity.
(C) less than unity, but more than zero.
(D) Equal to zero.
4. Rise in general price level along with declining output in the economy is called
(A) Inflation (B) Deflation
(C) Stagflation (D) Demand-pull inflation
5. National income equilibrium is not at the level where
(A) Aggregate investment equals aggregate savings
(B) Aggregate expenditure equals aggregate income
(C) Inflationary and deflationarygaps are absent
(D) Aggregate consumption is constant
6. Which of the following is a correct match?
(A) McClelland – ERG Theory
(B) Skinner – Reinforcement Theory

574
(C) Vroom – Equity Theory
(D) Locke – ExpectancyTheory
7. The study of gestures and body postures for their impact on communication is known
as
(A) Kinesics (B) Proxemics
(C) Semantics(D) None of the above
8. According to Organizational Culture Inventory (OCI), an organization in which
members are encouraged to work together in ways that meet higher order human needs
is classified as having a culture.
(A) Constructive (B) motivational
(C) Passive (D) high achievement
9. A matrix structure of organization
(A) Reinforces unity of command
(B) is inexpensive
(C) is easy to explain to the employees
(D) Gives to some employees more than one boss
10. Organizational development (OD) is a planned change plus
(A) Evaluation
(B) Intervention
(C) Ability for self-renewal
(D) Reinforcement
11. Match the following:
List – IList – II
(Concept) (Term)
a. An ongoing and formalized effort that focuses on
developing enriched and more capable workers i. Direction phase
b. A career development activity in which
managers make decisions regarding
the advancementpotentialofsubordinatesii. Careerdevelopment
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c. A career development activity that focuses
on preparing people to fill executive positions iii. Promotabilityforecast
d. Determining the type of career that
employees want and the steps they must take to realise
their career goals iv. Succession planning
Codes:
abcd
(A) i ii iii iv
(B) ii iii iv i
(C) ii iii i iv
(D) i iii ii iv
12. A formal explanation of the knowledge, skills, abilities, traits and other
characteristics necessary for effective job performance is known as
(A) Job Description
(B) Job Analysis
(C) Job Specification
(D) Job Enrichment
13. aims to reduce reliance on arbitrary methods of pay determination by
introducing an element of objectivity in the way jobs are compared.
(A) Performance appraisal
(B) Job evaluation
(C) Job enrichment
(D) Attrition
14. Match the following:
List – I List – II
a. The process of examining how
work creates or adds value to the
ongoing processes in a business i. Job Enrichment

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b. A fundamental rethinking and
radical redesign of business processes
to achieve dramatic improvements in
cost, quality, service and speed ii. Job Design
c. The process of organising work
into the tasks required to perform a specific
task iii. Work flow analysis
d. The process of putting specialized
tasks back together so that one person is
responsible for producing a whole
product or an entire service iv. Business process reengineering (BPR)
Codes:
abcd
(A) i ii iii iv
(B) ii i iv iii
(C) iii iv i ii
(D) iii iv ii i
15. The process of reorganizing a company‟s employees to improve their efficiency is
termed as
(A) Right sizing
(B) Down sizing
(C) Retrenchment
(D) Lay-offs
16. The value of a bond with a given maturity period is

(A) Present value of maturity value of the bond

(B) Present value of annual interest plus present value of maturity value

(C) Total amount of interest plus the maturity value received

(D) Maturity value received


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17. The capital budgeting appraisal criterion that is most appropriate in the situation of
capital rationing will be
(A) Payback period

(B) Internal Rate of Return

(C) Net present value

(D) Profitability index

18. For computation of cost of equity, arrange the following measures in the ascending
order of accuracy:

I. Capital Asset Pricing Model

II. Dividend-Price Ratio

III. Earning-Price Ratio

IV. Dividend-Price plus Growth Ratio

Codes:

(A) I ---> III ---> II ---> IV

(B) IV --->I --->III ---> II

(C) III ---> II ---> IV ---> I

(D) II ---> IV ---> I ---> III

19. Match the items given in the two lists:

List – I List – II

a. Debt securities without any explicit interest rate i. Floating Rate Bonds

b. Company issuing such bonds experiences less financial distress ii. Zero-coupon
bonds

c. Coupon rate quoted as mark-up on the given rate iii. Income Bonds

Codes:

abc

(A) i ii iii

578
(B) i iii ii

(C) ii iii i

(D) iii i ii

20. Which one of the following types of working capital is financial through a portion
of long-term funds?

(A) Gross working capital

(B) Net working capital

(C) Floating working capital

(D) Regular working capital

21. In the model of consumer adoption of new products developed by Everitt M.


Rogers, the first category of people to adopt a new product is called:-
(A) Early Adopters
(B) Initial Adopters
(C) First users
(D) Innovators

22. PepsiCo used to enter the Indian market in the early 1980s.
(A) Mega marketing (B) Meta marketing
(C) Micro marketing (D) Multistage marketing

23. Pricing decisions are most complex at which stage of the product life cycle?
(A) Decline stage (B) Growth
(C) Introduction (D) Maturity

24. Branding seeks


(A) To differentiate the product
(B) To charge differential price
(C) To sell the product in different countries
(D) To give attractive name to a product

25. The most widely used method of collecting the primary data is
(A) Experimental Research (B) Observation Research
(C) Statistical Research (D) Survey Research

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26. If the EOQ for an item of inventory in a firm is 1000 units, the estimated demand
for the term next year gets doubled, what shall be the revised EOQ next year, all
other relevant costs remaining unchanged ?
(A) 1000
(B) 1414
(C) 2000
(D) None of the above

27. From the following two statements, choose the correct answer:
Statement I : A person can have one utility curve for one situation and a quite
different one for the next situation.
Statement II : Business executive with a linear utility curve can effectively use
the expected monetary value as their decision criterion.
Codes:
(A) Statement I is true, but II is false.
(B) Statement I is false, but II is true.
(C) Both the Statements I and II are true.
(D) Both the statements I and II are false.

28. Which of the following is not included in the Five-p model of transformation
organization used in the Production and Operations Management?
(A) People
(B) Plant
(C) Production
(D) Programmes

29. Demand forecasting through “Survey of Buyer‟s Intentions” is not suited for
which type of products?
(A) ‗Convenience goods‘
(B) Industrial products
(C) New products
(D) Consumer durables

30. The names of certain reputed authors and their works are listed in the following
lists. Match the names and their works in the correct order:

580
List – I List – II
a. Elwood S. Buffa and Rakesh K. Sarin i. A Behavioral Theory of the Firm

b. Richard M. Cyert and James E March ii. Introduction to operations research

c. Martin K. Starr and D.W. Miller iii. Production and Operations Management

d. J.M. Juran iv. Quality Control Handbook

e. Hillier and Leiberman v. Inventory Control: Theory and Practice


Codes:
abcde
(A) i ii iii iv v
(B) ii iii iv v i
(C) iii iv i ii v
(D) iii i v iv ii
31. What is the probability of a value, chosen from a population, is less than its
median?
(A) 1.0 (B) 0.75
(C) 0.50 (D) 0.25
32. If in a given Binomial distribution with „n‟ fixed and P < 0.5, then
(A) The Poisson distribution will provide a good approximation
(B) The Binomial distribution will be skewed to the left
(C) The Binomial distribution will be skewed to the right
(D) The Binomial distribution will be symmetric
33. What separates the physical aspects of data storage from the logical aspects of data
representation?
(A) Schema (B) Relationships
(C) Constraints (D) Data
34. The components of E-business model are
i. Web Server
ii. Web Master
iii. Internet
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iv. Web Administrator
Codes:
(A) i, ii, iii & iv
(B) i, ii & iii
(C) i & iii only
(D) iii only
35. The simple probability of the occurrence of an event is called the
(A) Bayesian probability
(B) Conditional probability
(C) Joint probability

(D) Marginal probability

36. Indicate the statement which is not correct:


i. Credit risk is loss on account ofdefault of repayment of loan.
ii. Liquidity risk is the risk onaccount of the mismatches ofcash inflow and outflow in
afirm.
iii. Basic risk is the risk in a firmowing to the differences in theindex to which financial
assetsand liabilities are tied up.
iv. Forward rate agreement is acontract where a borrower /lender locks the interest
rateand protects itself from the losson account of change in thefuture interest rate.
Codes:
(A) i and ii
(B) ii and iii
(C) iii and iv
(D) None of the above
37. Which of the following facts are notcorrect in the context of India‟s relations with
the WTO?
i. India has been the founder member of the GATT.
ii. India has agreed to abide by the arrangement on the intellectual property rights.

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iii. Under the trade-related investment measures, India has already notified its stand.
iv. India has agreed to allow entry to Foreign Service providers.
v. The Indian government has amended the Civil Procedure
Code for the benefit of Foreign Service providers.
Codes:
(A) i and ii (B) ii and iii
(C) iv only (D) v only
38. Intra-firm transfer of technology is found when
(A) the price of technology development is very low.
(B) it is difficult to protect the technology through patents.
(C) the price of technology is very high.
(D) the technology is developed in association with an allied firm
39. Match the theories of Foreign Direct Investment with their contributors:
List – IList – II
(Theory) (Contributor)
a. Industrial Organization Theory i. Kemp &McDougall
b. Location Specific Theory ii. Hood and Young
c. Product Cycle Theory iii. Stephen Hymer
d. Two-Country Model iv. Raymond Vernon
Codes:
abcd
(A) i ii iii iv
(B) iv iii i ii
(C) iii ii iv i
(D) i ii iv iii
40. Assertion (A): The laws regarding patents and trademark are ineffective in many
countries.

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Reasoning (R): There are cases when a government does not abide by the rulings of
theInternational Court of Justice.
(A) (A) and (R) both are correct, and (R) is the right explanation of (A).
(B) (A) and (R) both are correct, but (R) is not the right explanation of (A).
(C) (A) is correct, but (R) is not correct.
(D) (R) is correct, but (A) is not correct.
41. A study conducted by the Entrepreneurship Development Institute of India,
Ahmedabad, revealed that the possession of competencies is necessary for superior
performance of the entrepreneurs. The study was conducted under the guidance of
(A) James T. McCrory
(B) David C. McClelland
(C) James J. Berna
(D) P.L. Tandon
42. is considered as a creative capital which performs economic functions
different from other investment vehicles, which primarily serve as the expansion capital.
(A) Equity Capital
(B) Fixed Capital
(C) Venture Capital
(D) Share Capital
43. Which is the apex body in India for formulating the policy in respect of
entrepreneurship development?
(A) Reserve Bank of India
(B) Small Industrial Development Bank of India
(C) National Entrepreneurship Board
(D) Industrial Development Bank of India
44. means identifying and imitating the best in the world at specific tasks.
(A) Quality circle
(B) Bench marking

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(C) Strategy
(D) Outsourcing
45. Which of the following factors can be regarded as a symptom of industrial
sickness?
(A) Lowering the employee‘s morale
(B) Delay and default in the payment of dues
(C) Continuous decrease in the price of its shares
(D) All of the above
46. Assertion (A): Ethical relativism means that there are universal standards of human
behavior.

Reasoning (R): Ethical behavior is primarily personal behavior conforming to standards


of morality.

(1) (A) is correct, and (R) is the right explanation of (A).

(2) (A) is incorrect, and (R) is a correct statement in isolation.

(3) (A) and (R) both are incorrect.

(4) (A) is correct, but (R) is not the right explanation of (A).

47. Clause 49 of SEBI Regulations was amended on

(A) 15 August, 2000

(B) 26 August, 2003

(C) 26 January, 2007

(D) 14 February, 2008

48. Fundamental legal obligations in taking corporate business decisions are


formulated on the basis of

(A) Judicial Principles

(B) Moral Principles

(C) Ethical Principles

(D) Legislative Principles

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49. Corporate governance mechanism should ensure that corporate executive make
strategic decisions that serve the entire group of
(A) Environmentalists

(B) Government officials

(C) Suppliers

(D) Shareholders

50. Morality of an employee in a business organization depends upon

(A) Individual disposition

(B) Understanding of business activities

(C) Understanding of individual in a group

(D) Family setup of individual employee

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UGC NET PAPER II DECEMBER 2013
1. The Marshallian utility analysis is based on a less valid assumption of
(A) Cardinal measurement of utility
(B) Constant marginal utility of money
(C) Diminishing marginal utility of goods
(D) Additivity of the utility
2. An appropriate pricing strategy for a new product to be introduced in the market will
be
(A) Average/Marginal cost-plus pricing
(B) Skimming/Penetrating pricing
(C) Product-line pricing
(D) Differential pricing
3. Economic capacity of a plant represents the firm‟s capability for
(A) Maximum physical output
(B) Maximum marginal output
(C) Break-even level of output and sale
(D) Output that equates average and marginal costs
4. Multi-stage approach to product pricing in a firm involves considerations for setting
the price as follows:
i. Selection of firm‟s objective
ii. Composition of marketing-mix
iii. Selection of target market
iv. Selection of pricing policy and strategy
Indicate correct sequence:
(A) iv → ii → i → iii
(B) iii → i → ii → iv
(C) ii → iv → iii → i
(D) i → iii → ii → iv
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5. Which one of the following practices is not sought to be regulated under the
Consumer Protection Act, 1986?
(A) Sales of defective goods
(B) Supply of services having some deficiency
(C) Misleading advertisements
(D) Goods supplied free of charge
6. The leadership prototype
(A) is useful primarily for selection and training of employees
(B) uses LPC (Least Preferred Co-worker) as an important component
(C) depicts the image of a model leader
(D) emphasizes leadership development
7. Which is not a perceptual process stage?
(A) Attention/selection
(B) Interpretation
(C) Follow-through
(D) Retrieval
8. Which statement is correct?
(A) Goals act as the set of constraints that an organization must satisfy.
(B) Deterministic goals specify the end or direction towards which the organization
applies its efforts, and they can be fairly determined.
(C) Goals may be categorized as deterministic and constraint goals.
(D) All of the above.
9. According to Fiedler‟s Contingency Model of Leadership, which one of the following
is not a situational variable?
(A) Leader-Member relations
(B) Task structure
(C) Position power
(D) Maturity of followers

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10. Which is not a centralized communication network system?
(A) Wheel Network
(B) Y-shaped Network
(C) Circle Network
(D) Chain Network
11. Why is „procedural justice‟ important in the context of the management of
misconduct?

(A) It reflects on the integrity of HR professionals.

(B) It ensures that individuals have a sense that they have been treated fairly.

(C) It reflects on the values and attitudes of top management.

(D) It protects the interest of daily wage earners.

12. To be effective a points-based rating system requires:

(A) Close management control

(B) Comprehensive, reliable and consistent information

(C) Objectivity in assessments

(D) 360° assessment

13. Too much of reliance on internal recruitment can result in

(A) Reduced job performance

(B) High labor turnover

(C) Internal conflict

(D) Poor group dynamics

14. The concept of stagnation in the context of HRM means:

(A) Lack of appropriate selection criteria.

(B) HR staff having very limited experience outside the HR functions.

(C) Over-reliance on the internal labor market to fill new positions.

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(D) Lack of integration of recruitment and selection into the wider human resource
function.

15. Negotiations are an important aspect of the collective-bargaining process.


What do they ensure?
(A) That conflict is contained within manageable boundaries.

(B) That there is an agreement between all parties involved.

(C) That conflict is always resolved.

(D) It achieves a set of lasting agreements.

16. If the going rate of interest is above the coupon rate, the bond will sell :

(A) At a Premium

(B) At a Discount

(C) At Par

(D) None of the above

17. In case the sales or project‟s investment deviates from expected ones, it needs

(A) Optimistic scenario analysis

(B) Sensitivity analysis

(C) Simulation analysis

(D) Financial break-even analysis

18. „Trading on equity‟ refers to

(A) Optimum capital structure

(B) Appropriate capitalization

(C) Capital gearing

(D) Watered capital

19. Match the items of two lists, giving the correct code:

List – I List – II

a. Dividend Capitalization Model i. John Lintner


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b. Dividend Relevance Model ii. James E. Walter

c. Dividend Irrelevance Model iii. Myron Gordon

d. Dividend Payout Model iv. Modigliani & Miller

Codes:

abc d

(A) ii i iii iv

(B) i iv ii iii

(C) iii ii iv i

(D) iv iii i ii

20. The excess payment by the new company to the amalgamating companies for the
appraised value of the assets and liabilities taken over is accounted as

(A) Capital Reserve

(B) Bonus Share Capital

(C) Goodwill

(D) Amount paid for the acquisition of the brand

21. Which of the following is direct marketing?


(A) Face to-face marketing
(B) Catalogue marketing
(C) Direct mailing
(D) Test marketing

22. In marketing research, primary data can be collected through


(A) Observational Method
(B) Survey Method
(C) Experimental Method
(D) All of the above

23. Holistic marketing does not include


(A) Internal Marketing
(B) Integrated Marketing

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(C) Performance Marketing
(D) Financial Marketing

24. Which of the following is not a distinctive characteristic of services?


(A) Transparency (B) Intangibility
(C) Inseparability (D) Perishability

25. To remain dominant, a market leader looks for


(A) Ways to expand total market demand
(B) Attempting to protect its current share
(C) Increasing its market share
(D) all of the above
26. Consider the names of organizations/persons listed in List – I and their
role/functions given in List – II:
List – I List – II
a. Bureau ofService quality Standards (BIS) i. Measurement of service
qualityIndian
B.ZeithmalParasuraman and Berry ii. Measurement of quality of educational
service
c. ISO iii. Standardization and quality control of
manufactured goods
d. National Assessment and Accreditation Council iv. Quality marketing and
Certification of standards
Indicate the correct matching:-
Codes:-
a b c d
(A) i ii iii iv
(B) ii iii iv i
(C) iv ii iii i
(D) iii iv i ii
27. In Linear Programming, which one of the following cases is not a type of sensitivity
analysis?
(A) Model building (B) Objective-function ranging

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(C) Pricing out (D) Right hand-side ranging
28. The upper control limit for an X chart, with n = 9, Mean = 26.7, R = 5.3 and d2
= 2.970, is
(A) 24.9 (B) 26.11 (C) 27.29 (D) 28.48
29. The additional cost of shortening an activity by one unit of time is
(A) Cost slope (B) Crash cost (C) Crash time (D) Least cost
30. Which method is least suited for forecasting the demand of a new product?
(A) Survey of Buyers‘ Intentions (B) Composite Opinions of Sales Force
(C) Test Marketing(D) Time-Series Analysis
31. In a hypothesis test, α = 0.05 and β = 0.10, the power of the test is
(A) 0.10 (B) 0.90
(C) 0.95 (D) 0.15
32. When performing a Chi-square hypothesis test, what happens when expected
frequencies in several cells are too small?
(A) Value of χ2 will be overestimated.
(B) The null hypothesis will be more likely to be rejected than it should be.
(C) The degrees of freedom are greatly reduced.
(D) (A) and (B), but not (C).
33. Under which situation, the method of „experimentation, modeling and sensitivity
analysis‟ is used to determine the information requirements of the management?
(A) Total Uncertainty
(B) High Risk
(C) Low Risk
(D) Certainty
34. The technique(s) that can be used in data mining is/are:
(A) Non-linear Regression Methods
(B) Decision tree

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(C) Neural networks
(D) All of the above
35. A Binomial distribution may be approximated by a Poisson distribution, if:
i. „n‟ is large and „p‟ is large.
ii. „n‟ is small and „p‟ is large.
iii. „n‟ is small and „p‟ is small.
iv. „n‟ is large and „p‟ is small.
Codes:
(A) i, ii and iii
(B) ii only
(C) iii and iv only
(D) iv only
36. Double taxation relief is normally provided by the country in which the parent
company has its legal residence. It is provided in the following modes:
i. Credit system without deferral
ii. Credit system with deferral
iii. Deduction of tax paid abroad as expenditure
iv. Investment credit
v. Tax subsidy
Identify the correct combination.
Codes:
(A) i, ii, iii and iv
(B) i, ii, iv and v
(C) ii, iii, iv and v
(D) i, ii, iii and v
37. The strategies of a global firm are affected by the following factors:
i. Different countries have different labor mixes.

594
ii. The legal, economic, social and cultural environment varies from one country to
another.
iii. Different countries have different time lines and geographical boundaries.
iv. Political relationship between the home country and the host country.
Indicate the correct combination.
Codes:
(A) i, ii and iii
(B) ii, iii and iv
(C) i, ii and iv
(D) i and ii only
38. Match the items of List – I and List – II:
List – I List – II
a. UNCTAD I i. India
b. UNCTAD II ii. Brazil
c. UNCTAD X iii. Thailand
d. UNCTAD XI iv. Switzerland
Indicate the correct matching.
Codes:
abcd
(A) iv i iii ii
(B) iii i iv ii
(C) ii i iii iv
(D) iv i ii iii
39. In the context of International Business, whether an equal distribution of income in
the host country:
(A) Has nothing to do with the MNCs market segmentation strategy.
(B) Matters greatly to the MNCs market segmentation strategy.
(C) Has little impact on the MNCs market segmentation strategy.

595
(D) Has a significant impact on the MNCs market segmentation strategy if the economy
is at the take-off stage.
40. Statement-I: Cost of retained earnings is included in the cost of equity in the context
of international business.
Statement-II: Interest rate swap and currency swap are used interchangeably in
international business.
(A) Statement I is true, but Statement II is false.
(B) Statement I is false, but Statement II is true.
(C) Both the statements I and II are true.

(D) Both the Statements I and II are false.

41. Who said – “An entrepreneur always searches for change, responds to it and exploit
it as an opportunity.”?
(A) James Burna
(B) McClelland
(C) Peter F. Drucker
(D) Robert C. Ronstadt
42. „Kakinada Experiment‟ on achievement motivation was conducted in
(A) Uttar Pradesh
(B) Jammu & Kashmir
(C) Andhra Pradesh
(D) Gujarat
43. The entrepreneurial process consists of the following steps:
i. Management of the resulting enterprise.
ii. Determination of the required resources.
iii. Identification and evaluation of the opportunity.
iv. Development of the business plan.
Indicate the correct sequence. Codes:
(A) iii iv i ii

596
(B) iv i iii ii
(C) iii iv ii i
(D) iv i ii iii
44. Match the items given in List – I and List – II:
List – I List – II
a. Market Research i. Sales promotion
b. Financial Plan ii. Form of business
c. Ownership iii. Budgeting
d. Marketing Plan iv. Exploring market opportunity
Codes:
abcd
(A) i ii iii iv
(B) iv iii i ii
(C) iv iii ii i
(D) i ii iv iii
45 . TePP stands for
(A) Technology for Promotion and Production
(B) Trade for Profitability and Productivity
(C) Technopreneur Promotion Programme
(D) None of the above
46. Indo-American Model of Corporate Governance sets top most priority to

(A) Business growth

(B) Customers

(C) Employees

(D) Shareholders

47 . Good governance in corporate sector depends upon

(A) Strong political will


597
(B) Transparency and accountability

(C) Trade Union practices

(D) Social and political responses

48. Corporate leaders in India in private sector are tempted by a very high target of
and the concerned employee has to achieve the target for promotion and stability.

(A) Money making

(B) Business growth

(C) Product development

(D) Profit

49. Corporate business ethics is norms and pattern that spring from
organizational view of good and bad, right and wrong.

(A) Social

(B) Behavioral

(C) Institutional

(D) Individual

50. Trade Union strike supporting a political cause and affecting production activities
is a problem related to

(A) Socio-economic phenomenon

(B) Ethical and technical phenomenon

(C) Ethical and economic phenomenon

(D) Socio-political phenomenon

598
UGC NET PAPER II SEPTEMBER 2013
1. The sum of the value of all final goods and services produced within a country and
net factor income from abroad is termed as
(A) GNP (B) Nominal GDP
(C) NNP (D) Real GDP
2. If a firm raises Rs1,00,000 by the issue of debentures at 10%, repayable after 10
years, the rate of return that equates the present value of cash inflows with the present
value of cash outflows is referred to as
(A) Explicit cost(B) Implicit cost
(C) Specific cost (D) Future cost
3. The major objective of economists to monopolies is
(A) Lack of technological progress in such industries.
(B) The dangerous impact on democratic government.
(C) The inability in an industry where there is a single producer.
(D) The tendency to restrict output and charge higher price.
4. Statement I: Demand for a commodity refers to quantity of the commodity
demanded at a certain price during any particular period of time.
Statement II: Contraction of demand is the result of increase in the price of the goods
concerned.
(A) Both I & II are correct.
(B) Both I and II are incorrect.
(C) I is correct and II is incorrect.
(D) II is correct and I is incorrect.
5. Match the items given in List-I with most suitable options given in List-II.
List – I List – II
(e) Rate of discount which equates
the net present value to zero. (i) Payback period
(f) Ratio of present value of cash
inflows to the cash outflow. (ii) Internal Rate of Return
(g) Percentage of annual net income
earned on average fund invested in a project. (iii) Profitability Index
599
(h) Investment divided by annual net cash
inflow. (iv) Average Rate of Return
Codes:
(a) (b) (c) (d)
(A) (iii) (ii) (iv) (i)
(B) (iii) (ii) (i) (iv)
(C) (ii) (iii) (iv) (i)
(D) (ii) (iii) (i) (iv)
6. The process through which individuals attempt to determine the causes behind others‟
behavior is known as
(A) Perception
(B) Attitude
(C) Attribution
(D) Social identity theory
7. Which theory of human motivation focuses on personal perceptions of the
performance process?
(A) Adam‘s Theory of Inequality
(B) McClelland‘s Need Theory
(C) Vroom‘s Expectancy Theory
(D) Alderfer‘s ERG Theory
8. Annual Reports, Balance Sheets, Brochures and Advertisements in
organizational communication are the means to aim at
(A) Influencing
(B) Image building
(C) Group building
(D) Credibility building

600
9. Match the following:

a. Attitudes 1. Beliefs that individuals possess certain characteristics


because of their membership in certain groups.

b. Job Satisfaction 2. Negative attitude toward the members of specific


groups, based solely on the fact that they are members of those groups.

c. Prejudice 3. Positive or negative attitudes held by individuals toward


their jobs.

d. Stereo types 4. Relatively stable clusters of feelings, beliefs and


behavioral intentions toward specific objects, people or institutions.

Codes:

a b c d

(A) 1 2 3 4

(B) 2 3 4 1

(C) 3 4 1 2
(D) 4 3 2 1

10. Match the following:

a. Delegating 1. A function of a situation wherein a leader is effective only when


the style used to influence and alter the situation is appropriate.

b. Situational Theory 2. Low nurturing and low regulating behavior.

c. Grid training 3. A function of a situation wherein a leader permits


subordinates to take part in decision making and permit them a considerable degree of
autonomy.

d. Participative Leadership 4. A multi-step process designed to cultivate concern


forpeople and concern for production.

Codes:

abcd

(A) 1 2 3 4

(B) 2 1 4 3

601
(C) 3 2 4 1

(D) 4 3 1 2

11. On-the-job training methods are not based on

(A) Demonstration methods

(B) Interactive methods

(C) Vestibule Training methods

(D) Apprentice training method

12. Minimum wage means

(A) Wage sufficient to ensure the workman food, shelter, clothing, frugal comfort and
provision for evil days.

(B) Wages paid in proportion to workman‘s work efficiency.

(C) A wage sufficient to satisfy the workman‘s basic needs.

(D) A sum of money paid under contract by an employer to a workman for services
rendered.

13. Which of the following statement is true?

(A) Profit sharing is an agreement freely entered into by which the employees receive
share fixed in advance from the organization‘s profits.

(B) An experiment in profit shares on a wide scale would therefore be definitely


undertaking a voyage of an unchartered sea.

(C) Profit distribution under a profit sharing plan is used to fund employee retirement
plans.

(D) All of the above.

14. Performance appraisal includes

(A) Check reviews done by the supervisors.

(B) Review his performance in relation to the objectives and other behaviors.

(C) Promote employees for self-appraisal.

(D) All of the above.

602
15. Match the following:

a. Human Resource Strategy 1. A goal-directed approach in which workers


and their supervisors set goals together for the upcoming appraisal period.

b. Compensation 2. Time during which employees can choose


not to be at work.

c. Flexi time 3. A legally required benefit that provides


medical care, income continuation and rehabilitation expenses.

d. Management by Objectives 4. A firm‟s deliberate use of human resources to


help it to gain or maintain an edge against its competitors.

Codes:

abcd

(A) 1 2 3 4

(B) 4 32 1

(C) 2 3 4 1

(D) 3 4 1 2
16. In which case,

The acquirer puts pressure on the management of the target company by threatening to
make an open offer; the board capitulates straight away and agrees for settlement with
the acquirer for change of control.

(A) Poison Put

(B) Bear Hug

(C) Poison Pill

(D) None of the above

17. Which of the following method of incorporation of risk in the capital budgeting
decision framework is useful for situations in which decisions at one point of time also
affect the decisions of the firm at some later date?

(A) Certainty Equivalent Approach

(B) Probability Distribution Approach

603
(C) Risk-adjusted Discount Rate Approach

(D) Decision-tree Approach

18. In which of the approach, the market value of the firm depends upon the EBIT and
the overall cost of capital

(A) Net Income Approach

(B) Net Operating Income Approach

(C) Modigliani-Miller Approach

(D) None of the above

19. Which is the assumption of Modigliani and Miller approach to cost of capital?

(A) The firms can be classified into homogeneous risk class.

(B) The capital markets are assumed to be perfect.

(C) All investors have the same expectations from a firm‘s net operating income which
is necessary to evaluate the value of a firm.

(D) All of the above.

20. Match the following:

List – I List – II

(Functions of Finance) (Significance)

a. Financial Statements 1. Check on Financial Activities

b. Administration of Tax 2. Reduction of Tax Liability

c. Internal Audit 3. Allocation of Fund

d. Budgeting 4. Income Statement

Codes:

abcd

(A) 1 2 3 4

(B) 4 3 2 1

(C) 4 2 1 3
604
(D) 2 3 4 1

21. A deliberate and careful choice of organization, product, price promotion,


place strategies and policies best define the concept of
(A) Marketing Mix
(B) Product Mix
(C) Market Penetration
(D) Market Segmentation
22. Rational motives in buying process are explained as
(A) Motives based on careful, logical reasoning and self-acceptance.
(B) Motives based on sensual satisfaction, fear and entertainment.
(C) Activity buyer adopts to satisfybuying needs.
(D) All of the above.
23. Which of the following combination, according to hierarchy of effects model is
correct?
(A) Awareness – Liking – Knowledge – Conviction – Preference – Purchase.
(B) Awareness – Knowledge – Liking – Preference – Conviction – Purchase.
(C) Awareness – Liking – Knowledge – Conviction – Purchase – Preference.
(D) Awareness – Preference – Knowledge – Liking – Preference – Purchase.
24. This consists of two lists of statements or terms and the candidate has to match an
item in one list with an item in the other.
List – I List – II
(Statement) (Terms)
I. Brands which are evaluated for the purchase decision. 1. Consideration set
II. Brands which are considered by the buyer for evaluation. 2. Evoked set
III. Brands which are disliked and avoided. 3. Inept set
IV. Brands which the buyer is aware but is indifferent towards it. 4. Inert set
Codes:
I II III IV
(A) 2 3 1 4
605
(B) 1 2 3 4
(C) 2 1 3 4
(D) 2 1 4 3
25.“Marketing concept is the recognition on the part of management that all business
decisions at the firm must be made in the light of customer needs and wants, hence that
all marketing activities must be under one supervision and that all activities of a firm
must be coordinated at the top in the light of market requirements.”
Who said it?
(A) Lazo and Carton
(B) Schwartz G
(C) King RL
(D) C.P. McNamara
26. Which one of the following is not a qualitative forecasting method?
(A) Educated guess
(B) Executive Committee Consensus
(C) Delphi method
(D) Linear regression method
27. Statement I: Mean (X) chart do not give the desired result about process variability.
Statement II: Range (R) chart monitors process variability.
(A) Statement I is correct, but Statement II is false.
(B) Statement II is correct, but Statement I is false.
(C) Both Statements I and II are correct.
(D) Both Statements I and II are false.
28. Which one is not a part of control charts for attributes?
(A) P-chart (B) f-chart
(C) np-chart (D) c-chart

606
29. There are different phases in a Operations Research Project. They are
(i) Research phase (ii) Action phase (iii) Judgment phase
The correct sequence of these phases is
(A) (i), (ii), (iii)
(B) (iii), (i), (ii)
(C) (ii), (iii), (i)
(D) (iii), (ii), (i)
30. The Graphical method can be used to solve
(A) A Linear Programming Problem (LPP) with all integer data.
(B) A LPP with two decision variables.
(C) Any LPP.
(D) A transportation problem with two origins and two destinations.
31. A vendor can make a profit of Rs3,000 with a probability of 0.4 or make a loss of
Rs1,000 with a probability of 0.6. What is his expected profit?
(A) Rs600 (B) Rs800
(C) Rs1,000 (D) Rs500
32. If the sample size is less than 50, which non parametric test can be used to test the
independence of attributes?
(A) Chi-square test
(B) Fisher Irwin test
(C) Cochran Q test
(D) Kruskal Wallis test
33. Match the items given in List-I with most appropriate options given in List-II.
List – I List – II
(a) Centroid
Method (i) Multiple Regression
(b) Hierarchical Method (ii) Factor Analysis
(c) Relationship between a single metric dependent

607
and two or more independent variables (iii) MANOVA
(d) The main and interactive effects of categorical
variables on multiple dependent interval variables. (iv) Cluster Analysis
Codes:
(a) (b) (c) (d)
(A) (iv) (ii) (i) (iii)
(B) (ii) (iv) (i) (iii)
(C) (ii) (iv) (iii) (i)
(D) (iv) (iii) (i) (ii)
34. Identify the window not associated with SPSS.
(A) Editor
(B) Syntax
(C) Output
(D) Format Cells
35. Match the items given in Column-A with the items given in Column-B.
Column – A Column - B
(a) A process to upgrade the quality of the
data before it is moved into a data warehouse. (i) Pattern recognition
(b) A system that is used to run the business in real
time and is based on current data. (ii) Data Scrubbing
(c) A critical success factor in data mining of
large data store. (iii) Operational system
Codes:
(a) (b) (c)
(A) (ii) (iii) (i)
(B) (iii) (ii) (i)
(C) (i) (ii) (iii)
(D) (ii) (i) (iii)
608
36. In BCG Matrix which division represents the organization‟s best long-run
opportunities for growth and profitability?
(A) Question marks
(B) Stars
(C) Cash Cows
(D) Dogs
37. In a comprehensive strategy formulation framework which matrix reveals the
relative attractiveness of alternative strategies and thus provides objective basis for
selecting specific strategies.
(A) SPACE Matrix
(B) SWOT Matrix
(C) QSPM Matrix
(D) Competitive Profile Matrix (CPM)
38. Stage 2 of strategy formulation consists of
(A) EFE Matrix, the IFE Matrix and the Competitive Profile Matrix (CPM).
(B) SWOT Matrix, SPACE Matrix, BCG Matrix, the Internal- External (IE) Matrix, and
the Grand Strategy Matrix.
(C) Quantitative Strategic Planning Matrix (QSPM).
(D) EFE Matrix, the IFE Matrix and Quantitative Strategic Planning Matrix (QSPM).
39. Match the following:
Term Explanation
a. Strategy 1. Enduring statements of purpose that
distinguish one business from other simple firms.
b. Vision 2. Specific results that an organization
seeks to achieve.
c. Mission 3. What do we want to become?
d. Objectives 4. Means by which long term objectives will
be achieved.
Codes:
abcd

609
(A) 4 3 1 2
(B) 4 2 3 1
(C) 1 3 2 4
(D) 1 2 3 4
40. Match the following:
List – I List – II
(a) Italian Culture i. Importance on group loyalty and consensus
(b) American Culture ii. Employment as workers of those who are agreeable,
respectful and obedient rather than innovative, creative and independent.
(c) Mexican Culture iii. Willing to do business with individuals they do
not know.
(d) JapaneseCultureiv. A culture wherein you do
notsoftenupexecutiveswithpraisebeforecriticize.
Codes:
(a) (b) (c) (d)
(A) i ii iii iv
(B) iv iii ii i
(C) ii iii iv i
(D) iii iv i ii
41. An Entrepreneur who is dominated more by customs, religions, traditions and past
practices and he is not ready to take any risk is called as
(A) Drone Entrepreneur
(B) Adoptive Entrepreneur
(C) Fabian Entrepreneur
(D) Innovative Entrepreneur
42. “Poverty is an artificial creation. It does not belong to human civilization and we
can change that and can make people come out of poverty through redesigning our
institutions and policies.” This preamble refers to
(A) Women Entrepreneurship
(B) Corporate Entrepreneurship
610
(C) Social Entrepreneurship
(D) None of the above
43. Match the following:
List – I List – II
(Subject) (Technique)
a. Entrepreneurship 1. Innovation
b. Marketing 2. Promotion Mix
c. Inventory Management 3. Reorder Level
d. HR Planning 4. Appraisals
Codes:
abcd
(A) 1 3 2 4
(B) 1 2 3 4
(C) 4 3 2 1
(D) 4 2 3 1
44. means identifying and imitating the best in the world at specific tasks and
functions.
(A) Quality circle
(B) Outsourcing
(C) Bench marking
(D) Continuous Improvement
45. Match the following:
(a) Action planning (i) New Actions are taken and old habits are broken.
(b) Accountability (ii) It is the periodic review of what has already been
executed.
(c) Working the plan (iii) It is the art of delegation to implement a business
plan.
(d) Reviewing the progress (iv) Making decisions relating to the order in which
the Business plan is implemented.

611
Codes:
(a) (b) (c) (d)
(A) (ii) (iii) (iv) (i)
(B) (iv) (iii) (i) (ii)
(C) (i) (iv) (iii) (ii)
(D) (iii) (iv) (ii) (i)
46. Which of the following duties is not a general duty of directors of a company?

(A) Duty of good faith

(B) Duty of care

(C) Duty to attend Board Meeting

(D) Duty not to delegate

47. The principles to be followed for corporate social responsibility are

(A) Involvement of stakeholders.

(B) Maintaining transparency in reporting.

(C) Independent verification of policies and outcome.

(D) All of the above.

48. Match the following:

List – I List - II

(a) Value (i) AhamBrahmasmi

(b) Unethical behavior (ii) Recycling Waste

(c) Indian ethos (iii) Bribery

(d) Environmental responsibility (iv) Trust worthiness

Codes:

(a) (b) (c) (d)

(A) (i) (iii) (ii) (iv)

(B) (iv) (iii) (i) (ii)


612
(C) (ii) (iii) (iv) (i)

(D) (i) (iii) (iv) (ii)

49. The obligation of an organization behave in a ethical way is known as

(A) Knowledge about ethics

(B) Social responsibility of business

(C) Organizational behavior

(D) Business without ethics

50. Identify the correct sequence of steps in a value identification process:

(i) Define the role of executive in leading the staff.

(ii) Learn about and discuss the power of shared values.

(iii) Obtain consensus that the leaders are committed to creating value based work
place.

(iv) Provide written material the executives can share with their reporting staff.

Codes:

(A) (i), (ii), (iii) and (iv)

(B) (iv), (ii), (iii) and (i)

(C) (ii), (iii), (i) and (iv)

(D) (ii), (iii), (iv) and (i)

613
UGC NET PAPER II JUNE 2013
1. The hypothesis that „consumption in one period would be a function of income in
that period and the returns on savings of the previous period‟ is given by
(A) Irving Fisher (B) Franco Modigliani
(C) Duesenberry (D) Robert Hall
2. From the following identify one which is not a property of Indifference curve?
(A) Indifference curves are downward sloping.
(B) Indifference curves are concave to the origin.
(C) Indifference curves are convex to the origin.
(D) Indifference curves do not intersect each other.
3.Which one of the following statements is true?
(A) Business decisions cannot be taken without a sound knowledge of Macro Economic
Theories.
(B) Knowledge of Economic Theory is misleading in making business decisions.
(C) With the help of Economic Theories, it is always possible to predict the future
accurately.
(D) Every Economic Theory is based on realistic facts which are common to all
societies.
4. Arrange the following in the proper order for decision under capital budgeting.
(i) Estimating the cost and benefits of proposals.
(ii) Deciding the investment objective.
(iii) Selecting the best investment proposal.
(iv) Applying the capital budgeting decision technique.
Codes:
(A) (ii) (iv) (i) (iii)
(B) (ii) (iv) (iii) (i)
(C) (ii) (i) (iv) (iii)
(D) (ii) (i) (iii) (iv)

614
5. Match the following items in List – A with the most appropriate options from List –
B:
List-A List-B
d. A lender buys securities to protect himself
from a fallinginterest rate1. Interestrate collar
b. A borrower buys securities to protect himself
from rising interest rate 2. Interest rate cap
c. A combination of interest rate cap and floor 3. Interest rate corridor
d. A combination of two or more interest rate caps 4. Interest rate floor
Codes:
a bcd
(A) 2 4 3 1
(B) 4 2 1 3
(C) 4 2 3 1
(D) 3 2 1 4
6. The form of learning in which people acquire new behaviors by systematically
observing the rewards and punishments given to others is known as

(A) Operant conditioning

(B) Positive reinforcement

(C) Modelling

(D) Law of effect

7. Diffusion of routine information takes place through

(A) Downward Communication

(B) Upward Communication

(C) Horizontal Communication

(D) External Communication

8. An integrated group of activities to bring about a change is known as

(A) Organization development


615
(B) Interventions

(C) OCTAPACE

(D) Collaborative culture

9. Match the following:

a. Motivation is a function of

fairness in social exchanges. 1. Expectancy Theory

b.People are motivated to behave

in ways that produce valued outcomes. 2. Alderfer‘sERGTheory

c. Determining specific levels of performance for workers to attain and then striving to
attain them. 3. Equity Theory

d. When people are frustrated by their


inability to meet needs at the next higher
level in the hierarchy, they regress to the
next lower category of needs and intensify
their desire to gratify these needs. 4. Goal-Setting Theory
Codes :

abcd

(A) 1 2 3 4

(B) 4 3 2 1

(C) 3 1 4 2

(D) 3 4 1 2

10. Match the following:

a. Self-efficacy 1. Determining specific levels of performance for workers to attain


them.

b. Goal setting 2. The belief that one‘s efforts will positively influence one‘s
performance.

c. Expectancy 3. People strive to maintain ratio of their own outcomes to


616
their own inputs that are equal to that of those with whom they compare themselves.

d. Equity Theory 4. One‘s belief about having the capacity to perform a task.

Codes :

abcd

(A) 1 2 3 4

(B) 4 1 2 3

(C) 3 4 1 2

(D) 2 3 4 1

11. Human resource planning system includes

(A) Human resource supply forecast

(B) Human resource inventory

(C) Corporate plan

(D) All of the above

12. Who among the following propounded the concept of collective bargaining?

(A) Beatrice and Gompers

(B) Beatrice and Emerson

(C) Gompers and Emerson

(D) Gautt and Gompers

13. What are the benefits of human resource planning?

(A) Achieve economy in hiring new workers.

(B) Match personnel activities and future organization objectives efficiently.

(C) Improve the utilization of human resources.

(D) All of the above

617
14. Human Resource Management includes

1. Employee Grievance 2. Organizational climate

3. Job incentives 4. Recruitment

5. Selection

Select the correct answer from the following:

(A) 1, 2, 3 and 4 (B) 1, 3, 4 and 5

(C) 1 and 5 (D) All of the above

15. Match the following:

a. Job Analysis 1. Determining worth of a job.

b. Job Evaluation 2. Examining how work adds value to the ongoing


process.

c. Job Design 3. Determining the pertinent facts about the job.

d. Work Flow Analysis 4. Organizing work into the tasks required to perform a
specific job.

Codes:

abcd

(A) 1 2 3 4

(B) 4 3 2 1

(C) 3 1 4 2

(D) 2 3 1 4

16. Which ratio explains that how much portion of earning is distributed in the form of
dividend?

(A) Dividend – Debt Ratio

(B) Equity – Debt Ratio

(C) Pay-out Ratio

(D) Earning – Yield Ratio

618
17. Modern approach to financial management is

I. The total fund requirement of the firm.

II. The asset to be acquired.

III. Payment of dividend to shareholders.

(A) I only

(B) II only

(C) II & III only

(D) I, II & III

18. Participating preference shares are those which participate in the

(A) General meeting of the company

(B) Voting

(C) Profits over and above their fixed dividend

(D) Management of the company

19. Which of the following is one of the critical assumptions of Walters‟ Model?

(A) All financing is done through retained earnings; external sources of funds like debt
or new equity capital are not used.

(B) The retention ratio, once decided upon, is constant. Thus, the growth rate, (g = br) is
also constant.

(C) The capital markets are perfect and the investors behave rationally.

(D) All of the above.

20. This consists of two lists of statements or terms and the candidate has to match an
item in one list with an item in the other:

List-I List-II

(Statement) (Terms)

a. Preventing hostile takeover 1. Management buyout

b. Leveraged buyout 2. Green mail

619
c. Accounting for merger 3. Pooling of interest

d. Financing for merger 4. Cash offer

Codes:

abcd

(A) 1 2 3 4

(B) 2 1 4 3

(C) 2 1 3 4

(D) 3 4 2 1

21. What kind of pricing strategy a firm should normally follow for marketing
electronic goods?
(A) Penetration pricing strategy
(B) Skimming pricing strategy
(C) Cost plus pricing strategy
(D) All of the above
22. Which fact is true about on-line marketing?
(A) A website which is user-friendly.
(B) A website which is user-friendly and regularly updated.
(C) A website which is user-friendly regularly updated and make product‘s graphical
image available.
(D) A website which is user-friendly, regularly updated, provides product‘s graphical
image and product‘s price is competitive.
23. Which of the following function involved under marketing management‟s
function?
1. Collection of market information
2. Marketing coordination
3. Marketing controlling
4. All the above

620
Codes:
(A) 1 & 2
(B) 2 & 3
(C) 3 only
(D) 4 only
24. Two statements are given below:
Statement – I: Product concept of marketing holds that consumers would favor those
products that are available and highly affordable.
Statement – II: Production concept of marketing holds that consumers would not buy
enough of the company‟s product unless the company undertakes a substantial
promotional effort.
Choose the correct option from the four options given below:
(A) Statement I is correct and II is wrong.
(B) Statement II is correct and I is wrong.
(C) Both statements are correct.
(D) Both statements are wrong.
25. Match the following:
List-I List-II
a. Differentiation 1. How familiar and intimate consumers are with the brand.
b. Esteem 2. The degree to which a brand is seen as different from others.
c. Relevance 3. How well the brand is regarded and respected.
d. Knowledge 4. The breadth of a brand‘s appeal.
Codes:
abcd
(A) 1 2 3 4
(B) 2 3 4 1
(C) 3 4 1 2
(D) 4 3 2 1

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26. Work measurement refers to
(A) The length of time it takes to complete a work task assigned to a specific job.
(B) Improving work methods.
(C) Arrangement of machines according to operations.
(D) Planning the work and working for the plans.
27. Facility planning includes
(A) Determination of production capacity
(B) Determination of production facilities location
(C) Determination of the layout
(D) All the above
28. Match the following:
a. For fraction or proportion of defects 1. R-chart
b. For number of defects 2. C-chart
c. For number of defects for unit 3. nP-Chart
d. For monitoring process variability 4. P-Chart
a b c d
(A) 1 2 3 4
(B) 4 3 2 1
(C) 2 1 4 3
(D) 3 4 1 2
29. Statement – I: One of the major causes of the industry for larger capacity is the
argument that large facilities facilitate greater economies of scale. But the major
concern for building big capacity is that funds will be tied up or scarcity of funds.
Statement – II: A viable alternative to larger capacity production facilities is to
develop sub-contractor and supplier networks.
(A) Both statements I & II are correct.
(B) Both statements I & II are false.
(C) Statement I is correct and II is false.
(D) Statement II is correct and I is false.
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30. In a symmetrical distribution
(A) Mean, Median and Mode values are identical.
(B) Mean, Median and Standard Deviation are equal.
(C) Mean, Median and Correlation are equal.
(D) None of the above
31. From the following, identify the test which can be used both as parametric and non-
parametric?
(A) ‗t‘ test
(B) ‗F‘ test
(C) ‗Chi-square‘ test
(D) ‗Wilcoxon‘ test
32. Arrange the following in ascending order in the testing of hypothesis:
(i) Determining the level of significance
(ii) Deciding the Statistical Test and computation
(iii) Setting the hypothesis
(iv) Decision
Codes:
(A) (iii), (ii), (i) and (iv)
(B) (iii), (i), (ii) and (iv)
(C) (i), (iii), (ii) and (iv)
(D) (i), (iii), (iv) and (ii)
33. Y = a + bX refers to
(A) Y = independent variable, a = slope of the line, b = Y intercept and X = dependent
variable
(B) Y = dependent variable, a = slope of the line, b = Y intercept and X = independent
variable
(C) Y = independent variable, a = dependent variable, b = Y intercept and X = slope of
the line

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(D) Y = dependent variable, a = Y intercept, b = slope of the line and X = independent
variable
34. Select the most appropriate option from Column B against the items in Column A:
Column A Column B
a. Computer used to operate large
corporate systemsand databases1.Componentsofinformationsystem
b. Data flow diagram 2. RAID
c. Equipment, procedures and end user 3. Structured design
Codes:
abc
(A) 3 2 1
(B) 2 3 1
(C) 1 2 3
(D) 2 1 3
35. According to Michael Porter, a strategy aims at producing products and services
considered unique industry wide and directed at consumers who are relatively price-
insensitive is known as
(A) Cost Leadership – Best Value
(B) Differentiation
(C) Focus – Low Cost
(D) Focus – Best Value
36. In context of Industry Analysis which matrix allows strategists to summarize and
evaluate economic, social, cultural, demographic, environmental, political,
governmental, legal, technological and competitive information?
(A) EFE Matrix
(B) CPM Matrix
(C) BCG Matrix
(D) IFE Matrix

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37. Which among the following best describes the process of gaining competitive
advantage in a firm?
(A) Strengths → Weaknesses →Distinctive Competencies → Competitive Advantage
(B) Weaknesses → Strengths →Distinctive Advantages →Competitive Advantages
(C) Weaknesses → Strengths →Distinctive Competencies →Competitive Advantages
(D) Distinctive Competencies →Weaknesses → Strengths →Competitive Advantages
38. According to Porter, the nature of competitiveness in a given industry can be
viewed as a composite of the following five forces:
1. Rivalry among competing firms.
2. Potential entry of new competitors.
3. Potential development of substitute products.
4. Bargaining power of suppliers.
5. Bargaining power of consumers.
Identify the force which is central (most powerful) to remaining four:
(A) Potential development of substitute products.
(B) Potential entry of new competitors.
(C) Bargaining power of consumers.
(D) Rivalry among competing firms.
39. Match the following: Organizational Structure Advantage
a. Functional Structure 1. Clarity of project objectives
b. Divisional Structure 2. Smooth delegation of authority and responsibility
c. Matrix Structure 3. Simple and unexpensive
d. Strategic Business Unit (SBU) 4. Ease of fixing accountability
Codes:
abcd
(A) 1 2 3 4
(B) 3 4 1 2
(C) 3 4 2 1

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(D) 4 3 1 2
40. A sound business opportunity is theresult of appropriate interaction between:
(A) Needs of the society
(B) Capabilities of an entrepreneur
(C) Resources available in the environment
(D) all of the above
41. “An entrepreneur always searches for change, responds to it and exploit it as an
opportunity.” Who said it?
(A) F.W. Taylor
(B) Peter F. Drucker
(C) J.R. Tulsian
(D) Max Weber
42. An industrial unit, according to RBI, is sick if
(A) Incurred cash loss in the previous year.
(B) Likely to incur loss in the following year.
(C) Current ratio is less than 1 : 1 with weak debt-equity ratio.
(D) all of the above.
43. Which is not the object of Entrepreneurship Development Programmes?
(A) To create successful entrepreneur
(B) To remove doubts of entrepreneurs and to give solutions to the problems
(C) To create awareness about Government schemes and programmes
(D) None of the above
44. Match the following:
a. Central Manufacturing Institute 1. Deals with paper industry
b. Central Pulp and Paper Research Institute 2. Deals with pollution control in
Indian Tannerics
c. Central leather Research Institute 3. Deals with Machine Tools
d. Electronic Service and Training Centre 4. Deals with training, technical and
consultancy services
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Codes:
abcd
(A) 1 2 3 4
(B) 3 1 2 4
(C) 2 3 4 1
(D) 4 3 1 2
45. The customer joining the queue and leaving it afterwards is defined as
(A) Jockeying
(B) Balking
(C) Reneging

(D) None of the above

46. Which among the following is not correct with regards to Clause 49 of SEBI Act?

(A) It came into effect from 31st December 2005.

(B) Clause 49 is related to the Listing Agreement to the Indian Stock Exchange.

(C) It desires 50 percent independent Directors.

(D) None of the above

47. Which of the following powers of Directors cannot be exercised without the
consent of shareholders in General Meeting?

(A) Power to make calls on shareholders

(B) Power to make loans

(C) Power to buy back its shares

(D) Power to borrow monies exceeding the aggregate of the paid-up capital of the
company and its free reserves.

48. The professional having high ranking and trained to uphold the highest standard
and effective operations, compliance and administration as corporate governance, is
known as

(A) Directors of Company

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(B) Chairman of Company

(C) Company Secretary

(D) Shareholders

49. Governance is the system of values, policies and institutions by which a society
manages its economic, political and social affairs through interactions within and
among the state, civil society and private sector is defined by

(A) World Bank

(B) UNDP

(C) European Commission

(D) None of the above

50. Match the following with regards to environmental ethical issues:

a. Ozone Depletion 1. Lead poisoning

b. Environmental Health 2. Deforestation

c. Logging 3. Food controversies

d. Genetic Engineering 4. CFC

Codes:

abcd

(A) 4 2 1 3

(B) 4 1 2 3

(C) 4 3 2 1

(D) 4 3 1 2

628
UGC NET PAPER II DECEMBER 2012
1. The term Opportunity Cost refers to
(A) Variable Cost
(B) Short-run cost
(C) The cost forgone in favor 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
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d. Oligopoly 4. Factor Prices
Codes:
abcd
(A) 3 4 2 1
(B) 4 3 1 2
(C) 3 2 1 4
(D) 1 2 3 4
6. When analyzing 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

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(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 Organizational

(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 organizationally 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 emphasizes in the broad sense, for policy makers as

(A) Removing employees


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(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) Maximize the wealth of Preference Shareholders

(B) Maximize the wealth of Debenture holders

(C) Maximize 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

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(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) Cundiffad 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

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(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 theproducer 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

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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.

635
(C) When the null hypothesis is not rejected at 1%, it is rejected at5% 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
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(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
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(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?

638
(A) Large Business

(B) Medium Business

(C) Small Business

(D) A Business Start-up

639
UGC NET PAPER II JUNE 2012
1. Cardinal measure of utility is required in
(A) Utility Theory
(B) Indifference Curve Analysis
(C) Revealed Preference
(D) Inferior Goods
2. A Right-ward shift in Demand Curve indicates
(A) A decrease in supply
(B) An increase in quantity supplied
(C) An increase in supply over the previous year
(D) Law of Variable Proportions
3. Which of the following is the condition for equilibrium for Monopolist?
(A) MR = MC
(B) MC = AR
(C) MR = MC = Price
(D) AC = AR
4. Giffen goods are those goods
(A) For which demand increases as price decreases
(B) Which are in short supply
(C) Which have high elasticity of demand?
(D) Which gives rise to a Cob-Web situation.
5. Match List-I with List-II and select the correct answer using the codes given below
the lists.
List – IList – II
(Demand Estimation Method) (Steps involved)
(a) Customer Interview Method 1. Consumers Interview
(b) Market Experiment Method 2. Time series or Cross Section Data
(c) Regression Method 3. Market Stimulation
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(d) Demand Forecasts 4. Market Experiments‘ Survey
Codes:
(a) (b) (c) (d)
(A) 1 3 4 2
(B) 1 3 2 4
(C) 2 4 3 1
(D) 4 2 1 3
6. Who divided all activities of the organizations into six groups; Technical,
Commercial, Financial, Security, Accounting and Managerial?

(A) Peter Drucker

(B) D. E. McForland

(C) Henry Fayol

(D) George R. Terry

7. What are the elements that a Mission Statement of an Organization should


include?

(A) Self guidelines for Business Operations

(B) Identifies the reasons for existence of a company and its responsibilities to the
stakeholders.

(C) Identifies the firms‘ customers and their needs and matches them to the products
and services.

(D) All of the above (A), (B) and (C).

8. Changes in population characteristics such as age, gender, race, marital status,


income and education are examples of change:

(A) Demographic

(B) Cultural

(C) Geographic

(D) Diversity

9. Which of the following is not included as Micro-Environmental Variables?


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(A) Prevailing economic and political conditions.

(B) Emerging new technologies

(C) Financial conditions and culture

(D) None of the above

10. During his days at Midvale Steel Company F.W. Taylor saw that employees
soldiering – deliberately working at a pace slower than their capabilities. He identified
that, worker indulge in soldiering primarily for the following reasons:

(A) Fear of losing jobs if they increase their output.

(B) Faulty wage systems.

(C) Out-dated methods of working

(D) All of the above

11. Among the best known trait approaches to personality measurement – column A
gives Traits and column B states the name of authority defining them. Match the correct
combination

Traits Author

(A) 20 + needs Murray

(B) 16 traits Eysenck

(C) 3 traits Cattell

(D) 5 traits Costa &Merree

12.“Third Party intervention” as “Conflict Resolution” is

(A) often required

(B) seldom required

(C) required as a mandate, when conflict remains unresolved

(D) not at all considered as an option

13. The policy of introducing “New Blood” is

(A) Steriotypic

(B) Bureacratic as well as redtapic


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(C) Innovative and challenging, making the corporate dynamic

(D) Innovative, challenging, but often resisted

14. An “Assessment Centre” is

(A) A place (B) A technique

(C) Both (A) and (B) (D) None of the above

15. “Organizational learning” and “Learning organization” are

(A) Same (B) Different

(C) Reverse to each other (D) Complementary to each other

16. The value of the firm is maximized when the

(A) Market price of equity share is maximum

(B) Market price of equity share is minimum

(C) Market value of debt is maximum

(D)None of the above

17. Which of the following is the main assumption of Waltar Valuation Model?

(A) All financing is done through Retained earnings and external sources of funds.

(B) With additional investment the firms business risk will change.

(C) There is a change in the key variables such as EPS and DPS

(D) None of the above

18. Which of the following is an important money market instrument?

(A) Debentures

(B) Commercial Paper

(C) Public Deposits

(D) None of the above

19. The method of payment in Mergers and Acquisitions may include

(i) Cash

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(ii) Loan stock

(iii) Ordinary shares

(iv) Convertible loan stock

(A) (i) & (iii) only

(B) (i) & (ii) only

(C) (i), (ii), (iii) and (iv)

(D) (ii) & (iv) only

20. Working capital refers to the capital mobilized for meeting

(A) Long-term financial needs of the company

(B) To meet day-to-day financial obligations of the company

(C) To meet the future financial requirements of the company

(D)None of the above

21. Which of the following statement is true?


(A) The essence of marketing is a transaction of an exchange.
(B) Marketing–orientation is philosophy, which has to pervade the organizationstructure
(C) Marketing is also a managerial function involving analysis, planning and control
marketing activities in an organization
(D) All of the above
22. A marketing plan is composed of three basic components, namely
1. Objectives 2. Policies
3. Program 4. Procedure
5. Hints 6. Decision
7. Command 8. Periodic
9. Diversity
(A) 1, 2 and 3 only
(B) 6, 7 and 8 only
(C) 5, 7 and 9 only
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(D) 2, 3 and 9 only
23. Which of the following is not the stage of new product development?
(A) Idea Generation
(B) Business Analysis
(C) Test Marketing
(D) Market Segmentation
24. Marketing research does not normally
(A) Gather environmental information
(B) Provide a continuous source of information
(C) Relate to all aspects of marketing operations
(D) Describe the current situation
25. Which of the following is not included in 7 P‟s of services marketing?
(A) Physical evidence
(B) People
(C) Process
(D) Marketing plan
26. Which of the following is not the type of Plant Layout?
(A) Product Layout
(B) Process Layout

(C) Fixed Position Layout


(D) Residential Layout
27. Which of the following factor is considered in the selection of a plant location?
(A) Source of Raw-materials
(B) Availability of water
(C) Marketing facilities
(D) All the above
28. Work measurement refers to
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(A) The length of time it takes tocomplete a work task assigned toa specific job
(B) Improving work methods
(C) Arrangement of machines according to sequence of operations
(D) Planning the work and working the plans
29. The Graphical method can be used to solve
(A) A linear programming problem with all integer data base.
(B) A linear programming problem with two decision variables.
(C) Any linear programming problem.
(D) A transportation problem with two origins and two destinations.
30. If two dice are thrown, the probability that the sum of their points is greater than 10
is
(A) 1/9
(B) 1/12
(C) 1/3
(D) 1/18
31. A Binomial distribution is characterized as β (16,0.5) i.e. sample size is 16 and the
probability of success is 0.5. The mean and variance of this distribution will be
respectively
(A) 8, 4
(B) 8, 8

(C) 4, 8
(D) 4, 4
32. Two variables are said to be perfectly negatively correlated if
(A) Covariance between them is positive
(B) Coefficient of correlation between them is –1
(C) Covariance between them is negative
(D) None of the above

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33. Which type of sampling is appropriate when the population consists of well-
defined groups such that the elements within each group are homogeneous and between
each group they are heterogeneous?
(A) Cluster Sampling
(B) Simple Random Sampling
(C) Stratified Sampling
(D) Judgment Sampling
34. Which of the following is not a type of internet connection?
(A) ISDN
(B) Dial-up
(C) Leased-Line
(D) ISP
35. Match the following:
List – I List – II
(I) Poisson distribution has the property that 1. Its mean is greater than Variance
(II) Normal distribution is a 2. Symmetric distribution
(III) Chi-square distribution is 3. Positively skewed distribution
(IV) Binomial distribution has the property that 4. Its mean and variance are
equal.
Codes:
(I) (II) (III) (IV)
(A) 4 2 1 3
(B) 4 2 3 1
(C) 1 2 3 4
(D) 2 4 3 1
36. WTO comes into being in the year
(A) 1975
(B) 1985
(C) 1995
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(D) 2001
37. Which of the following is not Porter‟s generic strategy?
(A) Focus
(B) Cost Leadership
(C) Differentiation
(D) Market segmentation
38. Globalization involves
(A) Free flow of technology from one country to another
(B) Free flow of investment from one country to the other
(C) Free flow of people from one country to the other
(D) All the above
39. Which is a short-term strategy for a firm?
(A) Corporate strategy
(B) Business strategy
(C) Company mission
(D) Functional strategy
40. Which is not a global entry strategy?
(A) Exporting
(B) Joint venture
(C) Merger and Acquisition
(D) Blue ocean strategy
41. Which one is not the characteristic feature of Entrepreneurship?
(A) Vision
(B) Risk Bearing
(C) Initiative and Drive
(D) Disloyalty
42. Which of the following organizations is meant for promoting small scale industries
at district level?
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(A) SIDBI
(B) DIC
(C) SFCs
(D) NABARD
43. The reason for sickness of small scale industry is
(A) Lack of capital
(B) Lack of market
(C) Severe competition
(D) All the above
44. The measure taken by Government to promote small scale industry.
(A) Provision of land
(B) Provision of marketing facilities
(C) Arrangement of credit and raw materials
(D) All the above
45. Small and medium enterprises are
(A) Labor intensive
(B) Capital intensive
(C) Market leader
(D) Industry price determiner

46. Business propositions are to be selected by making an analysis that, how much the
local resources will be depleted in the commencement and the course of Business. This
is known as

(A) Sensitivity Analysis

(B) Common Property Resource use

(C) Environmental Impact Assessment

(D) None of the above

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47. Whistle-Blowers are

(A) To be removed from the jobs

(B) To be promoted

(C) To be rewarded for the organizational enrichment

(D) To be protected since they intend to bring out truth

48. Funding through Micro finance to Small and Micro Enterprises is not successful
due to

(A) High rate of interest

(B) Out sourcing of method of providing Micro Finance

(C) (A) & (B)

(D) None of the above

49. “Work-Diversity” by nature, does not go against Ethics. But an executive assistant
while getting transferred from “stores” to “dispatch” section created turmoil in the
office. He is

(A) Most ethical in his deal

(B) Fully against work ethics

(C) He is workoholic

(D) A Rigid employer, hard nut to crack

50. Ethical Management is

(A) A Compromise

(B) A Compulsion

(C) A Judgment

(D) (A) and (B)

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UGC NET PAPER II DECEMBER 2011
1. Consider a demand curve which takes the form of a straight-line cutting both axes.
Elasticity at the mid-point of the line would be

(A) 0

(B) 1.0

(C) 1.5

(D) 2.0

2. Price taker firms

(A) Advertise to increase the demand for their product

(B) Do not advertise, because most advertising is wasteful.

(C) Do not advertise because they can sell as much as they want at the current price.

(D) Who advertise will get more profits than those who do not.

3. OPEC is an example of the type of producer‟s organization known as a

(A) Marketing Board

(B) Producer‘s Co-operative

(C) Trust

(D) Cartel

4. Match the following:

List – I List – II

I. Responsiveness of demand to change in price 1. Income elasticity of


demand

II. Responsiveness of demand to change in tastes 2. Price elasticity of demand

III. Responsiveness of demand to change in income 3. Cross elasticity of demand

IV. Responsiveness of demand to change in price

of related goods 4. Taste elasticity of demand


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Codes:

I II III IV

(A) 1 2 3 4

(B) 4 3 1 2

(C) 3 4 2 1

(D) 2 4 1 3

5. Opportunity costs are also known as

(A) Spill-over costs

(B) Money costs

(C) Alternative costs

(D) Sunk costs

6. Employees with high self-esteem set

(A) Higher goals for others

(B) Higher goals for themselves and lower goals for others

(C) Higher goals for themselves

(D) None of the above

7. Need for achievement goes with

(A) F.W. Taylor

(B) Hertzberg

(C) McGregor

(D) McClelland

8. An organizational memory includes the following except

(A) Information that employees possess

(B) Knowledge embedded in the organization‘s systems and structures

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(C) Documents

(D) Knowledge that is not documented

9. People should be held accountable for their own behavior, and if holding people
accountable for their own behavior entails capital punishment, then so be it. However,
no person should be held accountable for behavior of others over which he or she had
no control.

Which of the following is the most logical conclusion of the argument above?

(A) People should not be held accountable for the behavior of other people.

(B) People have control over their behavior.

(C) People cannot control the behavior of other people.

(D) Behavior that cannot be controlled should not be punished.

10. Nominal group technique is

(A) a consensus planning tool, generally used by groups to discuss, debate and decide
on issues of strength identification, problems and solutions.

(B) a consensus planning tool to arrive at decisions on issues, for instance man-power
requirement, by involving group of experts through blind rounds of communication

(C) a majority based decision making tool

(D) None of the above

11. Which pattern reflects a pure executive form of management?

(A) Functional

(B) Line

(C) Line and Staff

(D) Committee

12. “A place for everything, everything in its place” is

(A) American Management

(B) 5s Practice

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(C) Peter Principle

(D) A Chinese Practice

13. „Appreciative Enquiry‟ is

(A) Psychological Theory

(B) Training Method

(C) Business etiquette

(D) HR Quality

14. Robert Keplan is associated with

(A) A Benchmark Practice

(B) Balanced Score Card

(C) Kaizen

(D) Quality of Life

15. Strategic Intent of an Organization should clearly spell out

(A) Who we are

(B) Where are we going in the long term

(C) How will we measure the performance

(D) All of the above

16. In an endeavor to maximize corporate value, a finance manager has to factor in the
following

(A) Optimization Principle

(B) Risk-return Principle

(C) Marginal Principle

(D) All the above

17. The term financial engineering is related to

(A) Cost of production

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(B) Financial restructuring

(C) Product planning

(D) Capital issue

18. Value of the merged firm shall be

(A) Less than the acquired firm

(B) More than the acquirer

(C) Greater than the target and the acquirer

(D) None of the above

19. When borrowing is less than equity, the company is said to be

(A) Trading on equity

(B) Trading on thick equity

(C) Trading on thin equity

(D) None of these

20. Match the following:

List – I List – II

(Types of Debt) (Elements)

I. Secured debt 1. Mortgage on Assets

II. Unsecured debt 2. Non-mortgage on Assets

III. Convertible debt 3. Option

IV. Redeemable debt 4. Payment

Codes:

I II III IV

(A) 1 3 2 4

(B) 2 1 3 4

(C) 3 1 4 2

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(D) 1 2 3 4

21. It is a set of procedures and sources used by managers to obtain everyday


information about developments in the marketing environment. It is known as

(A) Internal Records System

(B) Marketing Intelligence System

(C) Marketing Research System

(D) Marketing Decision Support System

22. Match the List – I with List – II:

List – I List – II

(Stage of the product life cycle) (Marketing strategy applied in the


stage of the product life cycle)

I. Introduction Stage 1. Market Modification

II. Growth Stage 2. Rapid Skimming Strategy

III. Maturity Stage 3. Enter New Market Segments

IV. Decline Stage 4. Continuation Strategy

Codes:

I II III IV

(A) 3 2 4 1

(B) 2 3 1 4

(C) 2 3 4 1

(D) 4 2 1 3

23. It has been described as a cluster of complementary goods and services that are
closely related in the minds of consumers but are spread across a diverse set of
industries. It is known as

(A) Market Place

(B) Market Space

(C) Meta-Market
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(D) Marketing Mix

24. Company‟s ability to provide individually differentiated product for each consumer
is called as

(A) Digitalization

(B) Disintermediation

(C) Customerization

(D) Connectivity

25. The qualitative value of an exposure through a given medium is related to

(A) Reach

(B) Frequency

(C) Impact

(D) All of the above

26. When work stations are arranged according to the progressive steps by which the
product is produced, it is called a

(A) Functional layout

(B) Process layout

(C) Job shop layout

(D) Product layout

27. If for a demand process suited to a = 0.1 we try to fit a forecasting procedure with a
= 0.3, the forecast will

(A) Show large swings up and down

(B) Follow the demand better, consequently reducing forecast errors

(C) Show a pronounced behavior

(D) None of the above

28. CRAFT considers exchanges of locations for those departments which

(A) Have the same area

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(B) Have a common border

(C) Either (A) or (B)

(D) Have same costs per unit of distance

29. If the ordering costs are over-estimated by 50 percent and carrying costs are under-
estimated by 50 percent, the total annual cost will exceed the optimum cost by

(A) 73.2 per cent

(B) 50 per cent

(C) 0 per cent

(D) 150 per cent

30. PERT/CPM network analysis can be used for

(A) Project appraisal

(B) Project implementation

(C) Project monitoring and control

(D) All of the above

31. If P (A) =2/3, P (B) =1/2, P (A/B) =1/3, then the value of P(B/A) is

(A) 1/2

(B) 1/3

(C) 1/4

(D) 1/5

32. The level of significance is the probability of committing the

(A) Type I error

(B) Type II error

(C) Standard error

(D) Probable error

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33. The two lines of regression are 3x + 2y = 26 and 6x + y = 31 then the mean of x is

(A) 3 (B) 4

(C) 6 (D) 7

34. For which distribution(s) Mean and Median are equal?

(i) Binomial Distribution;

(ii) Poisson Distribution;

(iii) Exponential Distribution; or

(iv) Normal Distribution

Codes:

(A) (i)

(B) (ii)

(C) (i) & (iii)

(D) (ii) & (iv)

35. The type of transmission channel which can transmit data in one direction only is
known as

(A) Simplex

(B) Half Duplex

(C) Full Duplex

(D) Half Simplex

36. Eliminate – reduce – raise – create grid is germane to

(A) Competitive Strategy

(B) Blue Ocean Strategy

(C) Red Ocean Strategy

(D) None of the above

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37. Match the following:

List – I List – II

I. Ansoff 1. Case competency

II. C.K. Prahlad 2. Management by Objectives

III. Peter F. Drucker 3. Cascade Approach

IV. Alfred Chandler 4. Structure follows Strategy

Codes:

I II III IV

(A) 1 3 2 4

(B) 2 3 1 4

(C) 3 1 2 4

(D) 4 2 3 1

38. Growth strategy requires that a firm should

(A) Realign its product market environment

(B) Acquire new firm

(C) Go for new product development

(D) Expand the market

39. Michael Porter‟s five forces model belongs to

(A) Planning School

(B) Positioning School

(C) Cognitive School

(D) Competitive Strategy School

40. The theory of business of an organization is embodied in

(A) Vision

(B) Mission Statement

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(C) Objectives

(D) Policies

41. Service Sector is also called

(A) Primary Sector

(B) Secondary Sector

(C) Tertiary Sector

(D) None of the above

42. The definition of Micro, Small and Medium Enterprises (MSMEs) in India is based
on

(A) Total Sales of the Unit

(B) Investment in machines and equipments

(C) Market coverage

(D) Export capacity

43. Which one of the following agencies has the power to declare any industrial unit as
a potentially sick unit?

(A) BIFR (B) SIDBI

(C) IRCI (D) FICCI

44. The headquarters of the SIDBI is in

(A) Mumbai

(B) Lucknow

(C) New Delhi

(D) Hyderabad

45. In MSMED Act, 2006, the investment limit for Micro, Small and Medium
Enterprises have been prescribed as
(A) Rs10 lakhs, Rs5 crores and Rs10 crores

(B) Rs5 lakhs, Rs1 crore and Rs10 crores

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(C) Rs5 lakhs, Rs1 crore and Rs5 crores

(D) Rs10 lakhs, Rs10 crores and Rs15 crores

46. The study of moral principles or values that determine whether actions are right or
wrong and outcomes are good or bad refers to following:

(A) Quality (B) Ethics

(C) Opinions (D) Controls

47. Match List – I with List – II:

List – IList – II

(Terms relating to Ethics) (Conceptual description of terms relating to


Ethics)

I. Ethical Climate 1. Each society‟s view of ethics must be considered


legitimate and ethical

II. Ethical Relativism 2. There are basic moral principles that transcend
cultural and political boundaries

III. Ethical Universalism 3. People pick-up subtle hints and clues that tell them
what behavior is approved and what is forbidden.

IV. Ethical Convergence 4. There are growing pressures on international business to


follow the same rules in managing ethical behavior and social responsibility

Codes:

I II III IV

(A) 3 1 2 4

(B) 1 3 2 4

(C) 1 4 3 2

(D) 4 1 2 3

48. An organization‟s moral obligation toward all of its stakeholders is referred as


following:

(A) Value in workplace

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(B) Corporate social responsibility

(C) Ethical behavior

(D) Professionalism

49. is the manager‟s dilemma when he has to decide on the commercial


proposal submitted by his son.

(A) Favouritism

(B) Moral Dilemma

(C) Conflict of Interest

(D) None of the above

50. “Make use of paper bags instead of plastic bags.” It is related to

(A) Environmental Ethics

(B) Green Marketing

(C) Socially Responsible Marketing

(D) Social Marketing

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UGC NET PAPER II JUNE 2011
1. In the case of an inferior commodity, the income elasticity of demand is

(A) Positive (B) Unitary

(C) Negative (D) Infinity

2. The slope of the iso-cost line is determined by

(A) Prices of the two factors

(B) Productivity of the two factors

(C) Degree of substitutability of the two factors

(D) None of these

3. Which one of the following statements is correct or more nearly correct?

(A) An increase in the price of commodity represents a fall in its value

(B) Value has nothing to do with the price

(C) If the price of a commodity falls, its value relative to other goods does not change

(D) The price of a good is its value measured in terms of money

4. The important macro-economic aggregates are

(A) Aggregate Consumption

(B) Gross Domestic Capital Formation

(C) Gross Domestic Savings and GNP

(D) All of the above

5. Match the following

List – I List – II

I. For a given 10 per cent change in price,

demand changes by zero per cent 1. e > 1

II. For a given 10 per cent change in price,

Demand changes by 5 per cent 2. e = 1


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III. For a given 10 per cent change in price demand

changes by 10 per cent 3. e < 1

IV. For a given 10 per cent change in

price, demand changes by 20 per cent 4. e = 0

Code:

I II III IV

(A) 3 1 2 4

(B) 4 3 2 1

(C) 1 2 3 4

(D) 2 3 1 4

6. Long – lasting beliefs about what is important in a variety of situations, that guide
our decisions and actions are:

(A) Values

(B) Ethical dimensions

(C) Priorities

(D) Desires

7. Figure – Ground Theory explains the process of

(A) Cognition (B) Sensation

(C) Perception (D) Motivation

8. Successive re-inforcements resulting in desired behavior are

(A) Mentoring

(B) Motivation

(C) Shaping

(D) behavior-modification

9. Psychological contract is related to

(A) Job – person fit


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(B) Role – person fit

(C) Organization – person fit

(D) None of the above

10. Equity is called as

(A) Equality of all

(B) Standard performance

(C) Comparative sense of justice to self

(D) None of the above

11. The distinction between „job enrichment‟ and „job enlargement‟ is

(A) Semantics

(B) ‗Job enrichment‘ is vertical loading while ‗job enlargement‘ is horizontal loading

(C) ‗Job enrichment‘ is the outgrowth of Hertzberg‘s theory while ‗job enlargement‘ is
of Maslow‘s orientation.

(D) ‗Job enrichment‘ is more for the individual and the other is more of organization
making

12. In „delegation‟

(A) Only authority is delegated not responsibility

(B) Both authority and responsibility are delegated

(C) Only responsibility is delegated, not authority

(D) Neither responsibility, nor authority is delegated

13. Cross-functional groups that operate across space, time and organizational
boundaries with members who communicate mainly through information technologies
are

(A) Telecomputers

(B) Virtual teams

(C) Teleworkers

(D) Telemarketers
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14. Career resilience means

(A) Ability to switch careers

(B) Ability to remain with same competencies refining suitably for organizations

(C) Lack of capacity to remain in career

(D) None of the above

15. Lock out means

(A) An antithesis of strike

(B) Refusal to employ any person in employment

(C) the temporary closing of a place of employment

(D) Illegal strike

16. Which is the task of a finance manager?

(A) Investment decision

(B) Dividend decision

(C) Management of income

(D) All of the above

17. Which method of capital budgeting focuses on liquidity of a project?

(A) Net present value

(B) Profitability index

(C) Payback period

(D) Internal rate of returns

18. Which statement is true about deep discount bonds?

(A) These are in the form of low interest bonds

(B) These bonds are sold at a discounted value and on maturity face value of the bond is
paid to the investors

(C) There is no interest payout during lock-in period

(D) None of the above


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19. Financial leverage is

(A) EBIT × 100

Sales

(B) EBIT

EBT

(C) Sales

Fixed Assets

(D) Profit × Capital

Sales

20. Match the following

List–I (items / method) List – II (used / Application)

I. Rate of return method 1. Capital budgeting

II. Purchase consideration 2. Merger

III. Diminishing Balance Method 3. Depreciation

IV. Fifo Method 4. Stock valuation

Code:

I II III IV

(A) 1 3 2 4

(B) 3 2 4 1

(C) 1 2 3 4

(D) 1 4 3 2

21. Arrange the following steps of a five-stage model of the consumer buying process:

I. Evaluation of Alternatives

II. Need Arousal

III. Information search

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IV. Purchase Decision

V. Post Purchase behavior

Code

(A) IV, II, III, I, V

(B) III, II, I, IV, V

(C) I, II, IV, III, V

(D) II, III, I, IV, V

22. It refers to the total number of items in the Product Mix. It is known as following.

(A) The width of product mix

(B) The length of product mix

(C) The depth of product mix

(D) The consistency of product mix

23. Given below are two statements, one labeled as Assertion (A), and the other labeled
as Reason (R). State the correct answer from code given below.

Assertion (A): Pure-click companies can be search engines, Internet service providers,
commerce sites, transaction sites, content sites and enabler sites.

Reason (R) : Pure-click companies are those companies that have launched a
website without any previous existence as a firm.

Code:

(A) (A) is correct, but (R) is wrong.

(B) Both (A) and (R) are correct.

(C) (A) is wrong, but (R) is correct.

(D) Both (A) and (R) are wrong.

24. Match List-I and List-II.

List – I List – II

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(Characteristics of Services) (Marketing Strategy applied considering a
characteristic of service)

I. Intangibility 1. Preparing a service blue print showing each


service and process in a flow chart.

II. Inseparability 2. Tangiblize the intangible

III. Variability 3. To train more service providers and build up


client confidence.

IV. Perishability 4. Use differential pricing

Code:

I II III IV

(A) 2 1 3 4

(B) 2 3 1 4

(C) 1 3 2 4

(D) 2 1 4 3

25. A diverse collection of incentive tools designed to stimulate quicker buying of a


particular product or service by consumers or the trade is known as

(A) Advertising

(B) Personal selling

(C) Publicity

(D) Sales promotion

26. Which of the following departments is not directly affected by the facilities location
decision?

(A) Production / operations

(B) Marketing

(C) Personnel

(D) Finance

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27. Ship building and construction of dams and bridges are typical examples of

(A) Fixed position layout

(B) Functional layout

(C) Product layout

(D) Project type layout

28. If unit item cost = Rs10, monthly carrying charge = 3 per cent, monthly demand =
100 units and ordering cost = Rs20 per order, the EOQ is:

(A) 11.45

(B) 400

(C) 115.4

(D) 33.3

29. In managing a project, a network is better suited than Gantt chart because

(A) It can be updated more easily

(B) It clearly brings out the interdependencies between the different activities

(C) Both (A) and (B)

(D) None of the above

30. The aggregate production plan spans

(A) Short time horizon

(B) Intermediate time horizon

(C) Long time horizon

(D) None of the above

31. The probability that a contractor will get a plumbing contract is 2/3 and that he will
get an electric contract is 4/9. If the probability of his getting at least one of the two
contracts is 4/5, then the probability that he will get both contracts is

(A) 10/45

(B) 8/27

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(C) 14/45

(D) 26/45

32. If a random variable X follows Poisson distribution such that P(X = 1) = P(X = 2),
then the mean of the distribution is

(A) 1 (B) 2

(C) 3 (D) 4

33. The value of R1.23 lies between

(A) –1 and +1

(B) –1 and 0.0

(C) 0.0 and +1

(D) – 0.5 and + 0.5

34. A source programme is

(A) a programme written in machine language

(B) a programme to be translated into machine language

(C) the machine language translation of a programme written in high-level language

(D) none of the above

35. Processing data in groups collected over periods of time is known as

(A) Time - sharing

(B) Batch processing

(C) Real – time processing

(D) Multi – processing

36. “We must forget to learn and learn forgetting” is ascribed to

(A) Tom Peters

(B) Peter F. Drucker

(C) Abraham S. Maslow

(D) Garry Hamel


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37. In highly competitive environment an organization to achieve sustained success
should be
(A) Better

(B) Bigger

(C) Resilient

(D) None of the above

38. Corporate governance is about

(A) Crafting the strategy

(B) Compliance with regulatory regime

(C) Satisfying the stakeholders

(D) Governing the company in the interest of government in power

39. Strategic planning is about

(A) Strategic thinking

(B) Strategic programming

(C) Tactical Planning

(D) Portfolio Planning

40. If two or more companies are merged and only one of them survives while others
loose their independent entity, it is referred to as

(A) Merger

(B) Absorption

(C) Amalgamation

(D) Combination

41. The MSMED Act, 2006 classified enterprises broadly into

(A) Two categories

(i) Manufacturing enterprises and

(ii) Service enterprises


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(B) Three categories

(i) Micro enterprises

(ii) Small enterprises

(iii) Medium enterprises

(C) Four categories

(i) Micro enterprises

(ii) Small enterprises

(iii) Tiny enterprises

(iv) Medium enterprises

(D) Four categories

(i) Tiny enterprises

(ii) Micro enterprises

(iii) Small business enterprises

(iv) Medium enterprises

42. Which sector is called as Primary Sector in India?

(A) Industrial sector

(B) Service sector

(C) External sector

(D) Agricultural sector

43. How many times the census of registered Micro, small and medium Enterprises
(MSMEs) have been made by Small Industries Development Organization (SIDO)?

(A) 1

(B) 2

(C) 3

(D) 4

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44. EDII is situated at

(A) New Delhi

(B) Ahmedabad

(C) Patna

(D) Kolkata

45. Industrial Policy of which year contained for the very first time a special thrust on
measures for promoting and strengthening small tiny and village enterprises

(A) 1956

(B) 1991

(C) 1948

(D) 1977

46. Members of organizations are increasingly finding themselves facing situations in


which they are required to define right and wrong conduct. It is most aptly called as
following

(A) Environmental issues of ethics

(B) Social responsibilities of business

(C) Corporate governance & ethics

(D) Ethical Dilemmas of business

47. Situations in which individuals are required to define right and wrong conduct to be
complied with are called as following

(A) Ethical climate

(B) Ethical dilemmas

(C) Code of Ethics

(D) None of the above

48. Arrange the following steps of a simple ethics programme

I. Walk the talk

II. Size up your company‘s current ethics


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III. Train your people

IV. Solicit feedback from your employees

V. Create a code of conduct


Code:
(A) V, I, IV, II, III

(B) II, V, IV, III, I

(C) II, V, III, IV, I

(D) II, IV, III, II, I

49. Who is involved in „Shoplifting‟ from the following?

(A) Producer

(B) Seller

(C) Consumer & or a customer

(D) None of the above

50. Match List-I with List-II.

List – IList – II

(Ethical Issue) (Stakeholder affected)

I. Unsafe working conditions 1. Customers

II. Product safety 2. Society

III. Environmental Pollution 3. Employees

IV. Following local laws 4. Host Country

Code:

I II III IV

(A) 2 4 3 1

(B) 3 1 2 4

(C) 1 3 4 2

(D) 3 2 1 4
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UGC NET PAPER II DECEMBER 2010
1. Under perfect competition in the long run

(A) All firms earn normal profits

(B) Few firms earn super normal profits

(C) All firms are at break even

(D) None of the above

2. National Income at market prices is equal to

(A) Gross national product at market prices

(B) Gross domestic product at market prices

(C) Net national product at factor cost

(D) None of the above

3. If there is a single buyer, it is called

(A) Monopoly

(B) Oligopoly

(C) Monopsony

(D) None of the above

4. Under which of the following method the time value of money is not considered?

(A) Net present value method

(B) Internal rate of return method

(C) Payback period method

(D) All of the above

5. A firm is having increasing returns to scale means

(A) It is having increasing costs.

(B) It is having constant costs.


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(C) It is having decreasing costs.

(D) None of the above

6. Production can be measured in terms of which of the following?

(A) Total productivity

(B) Marginal productivity

(C) Average productivity

(D) All of the above

7. Which of the following is an objective of human resource management?

(A) Productivity

(B) Quality of work life

(C) Organizational change

(D) All the above

8. Motivation implies that the employees in an organization

(A) Exert more effort to accomplish the desired goals of the organization.

(B) Exert more effort to accomplish the individual goals.

(C) Exert more effort to accomplish the common goals of employees.

(D) Exert more effort to accomplish the desired goals of the employer, employees and
the Government.

9. Communication can be

(A) Oral

(B) Written

(C) Oral and Written

(D) None of the above

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10. Which of the following is not considered as a leadership style?

(A) Task oriented leadership style.

(B) Society oriented leadership style.

(C) Employee oriented leadership style.

(D) Autocratic leadership style

11. Which of the following method has not been given a statutory form in India?

(A) Conciliation

(B) Mediation

(C) Voluntary Arbitration

(D) Adjudication

12. What are the operative functions of HRM?

(A) Organizing

(B) Directing

(C) Controlling

(D) All of the above

13. Which one is not a performance appraisal method?

(A) 360° performance appraisal

(B) Balanced score card

(C) Rank method

(D) Interview method

14. Selection of persons in an organization is the responsibility of

(A) Security Dept.

(B) Personnel Dept.

(C) Trade Unions


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(D) Canteen Dept.

15. Labor Welfare facilities were incorporated in which legislation?

(A) MRTP Act

(B) Essential Commodities Act

(C) Consumer Protection Act

(D) Factories Act

16. Job analysis involves

(A) Job description and job specification

(B) Job order and job description

(C) Job specification and job order

(D) Job satisfaction and job description

17. Which one of the following represents number of years required to recover the
initial investment?

(A) Accounting rate of return

(B) Payback period

(C) Internal rate of return

(D) Net present value

18. Other things being equal, stocks which are highly liquid command

(A) Higher dividend payout ratio

(B) Lower dividend payout ratio

(C) Higher P/E multiples

(D) Lower P/E multiples

19. Weighted Average Cost of Capital may contain

I. Cost of Equity

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II. Cost of Debt

III. Cost of goods purchased

IV. Cost of initial investment

Find the correct combination according to the code:

(A) I, II & III are correct.

(B) II, III & IV are correct.

(C) III & IV are correct.

(D) I & II are correct

20. Long term sources of finance may contain

I. Retained earnings

II. Inter corporate deposits

III. Debentures

IV. Preference share capital

Find the correct combination according to the code:

(A) I, III & IV are correct

(B) II, III & IV are correct

(C) II & III are correct

(D) II & IV are correct

21. When a firm proposes to acquire another firm, the merger proposal may be viewed
as a

(A) Working capital management proposal

(B) Capital budgeting proposal

(C) Financing decision

(D) Dividend decision

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22. Which of the following is not the element of promotion-mix?

(A) Advertising

(B) Place

(C) Personal selling

(D) Publicity

23. Which of the following is in correct order?

(A) Product, Place, Promotion and Price

(B) Product, Promotion, Place and Price

(C) Product, Price, Promotion and Place

(D) Product, Price, Place and Promotion

24. Which of the demographic variables is not used by marketers for demographic
segmentation?

(A) Gender (B) Age

(C) Occupation (D) Poverty

25. At which stage of the new product development, the launching of new product will
take place

(A) Business Analysis

(B) Test Marketing

(C) Commercialization

(D) Marketing strategy Development

26. If a company uses its company name for its entire range of products offered, then it
is called

(A) Private branding

(B) Corporate branding

(C) Product-line branding

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(D) Specific product branding

27. One-level channel of distribution consists of

(A) Producer – consumer

(B) Producer – dealer – consumer

(C) Producer – dealer – retailer – consumer

(D) Producer – dealer – wholesaler – retailer – consumer

28. The primary role of a production manager is

(A) To meet the production target and delivery schedule

(B) To produce goods/services of right quality

(C) To produce goods/services by right quantity at the predetermined time

(D) All of the above

29. Fixed Position Layout is used when

(A) The operation requires heavy tools and equipments.

(B) The operation requires only hand tools and simple equipments.

(C) The continuity of production process is to be maintained.

(D) None of the above

30. Critical Path Method (CPM) is concerned with estimation of

(A) Optimistic time

(B) Production lead time

(C) Pessimistic time

(D) None of the above

31. In a normal distribution, mean (m) ± 3s (3 standard deviation) limits contains


approximately

(A) 99.73% of the observations

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(B) 99.27% of the observations

(C) 96% of the observations

(D) 95% of the observations

32. Firms choose a focus strategy to serve the needs of which of the following?

(A) Buyers group

(B) Different-segment of a product line

(C) Different geographical market

(D) All of the above

33. Which of the following is not the component of work study?

(A) Work measurement

(B) Case study

(C) Time study

(D) Motion study

34. Half percent of the letters mailed in a city have incorrect addresses. Out of 200 such
letters mailed in a day, the probability of finding at most 3 incorrect addresses is

(A) 3e/8

(B) 8/3 e–1

(C) 1/ 6 e–1

(D) 5/ 2 e–1

35. If X is a random variable normally distributed with mean u and variance σ2, then
the mean deviation about mean is given by

(A) 1/√2π

(B) √2/π

(C) σ / 2π

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(D) √2σ

36. The level of significance is the probability of committing

(A) Type I error

(B) Type II error

(C) Standard error

(D) Probable error

37. Which of the following tests is used to test a hypothesis about the mean of a
univariate normal distribution with unknown variance?

(A) Normal test

(B) Student‘s test

(C) Paired t-test

(D) Chi-square test

38. Mean and variance of Binomial Distribution are

(A) m and σ2 (B) m and nq

(C) m and np (D) np and npq

(Where the terms have usual statistical meaning)

39. Which of the following is the characteristic of a strategic business unit?

(A) It serves a homogenous set of markets.

(B) It serves a unique set of products.

(C) It owns responsibility for its own profitability.

(D) All of the above.

40. Which one of the following is not a generic strategy?

(A) Cost Leadership

(B) Product Differentiation

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(C) Cost focus

(D) Group focus

41. A retrenchment strategy is designed to reduce

(A) Technical losses

(B) Financial losses

(C) The scale and scope of the business operation

(D) all of the above

42. World Trade Organization provides

(A) Rule based multilateral trading system.

(B) Equity and social justice to the people.

(C) Rule based regional trading system

(D) All of the above

43. Sick enterprise is referred to

(A) CII (B) RBI

(C) SIDBI (D) BIFR

44. Ethical values are derived from

(A) Corporate philosophy

(B) Organizational culture

(C) Corporate objectives

(D) The religious books

45. Which of the following is not related to business ethics?

(A) Social responsibility of business

(B) Environmental ethics

(C) Ecological consciousness


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(D) Profiteering

46. Which of the following is the cause of sickness of an enterprise?

(A) Lack of adequate capital

(B) Lack of demand for the products

(C) Lack of raw material

(D) All of the above

47. Value driven companies are

(A) Sure to be successful in the long run.

(B) Sure to be unsuccessful as they are not maximizing profits.

(C) Sure to become charitable institutions.

(D) None of the above

48. Which of the following is not a tool of corporate governance?

(A) Preparation of financial statements

(B) Appointment of independent directors.

(C) Compulsory audit of financial statements.

(D) Time bound promotion of employees.

49. Which of the following is not the social responsibility of the business?

(A) Promotion of Markets

(B) Promotion of Green Environment

(C) Promotion of Education

(D) Promotion of Public Health

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50. The Business Code of Conduct provides guidance to managers and employees

(A) When they encounter an ethical dilemma.

(B) For improving their technical skills.

(C) For pursuing their business goals.

(D) All of the above

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UGC NET PAPER II JUNE 2010
1. During last five years per capita income of India is increasing, that means

(A) National income growth of India is more than growth of population.

(B) Growth in population is more than the growth in National income of India.

(C) National income of India & population of India have grown at the uniform rate.

(D) All of the above

2. In the short run firm considers the minimum of its average variable cost curve as

(A) Break-even point

(B) Shutdown point

(C) Economies of scope

(D) None of the above

3. The positive cross elasticity of demand between two products means

(A) Two products are substitutes

(B) Two products are complementary

(C) Two products are neither substitutes nor complementary

(D) None of the above

4. A monopolist always operates in the

(A) Inelastic segment of its demand curve

(B) Elastic segment of its demand curve

(C) Unitary elastic segment of its demand curve

(D) None of the above

5. The price elasticity of demand for any product in the long run

(A) Is more than its short run value.

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(B) Is less than its short run value.

(C) is same as its short run value.

(D) None of the above.

6. Earnings foregone in the context of the best alternative is termed as

(A) Past cost

(B) Historical cost

(C) Opportunity cost

(D) Sunk cost

7. A situation where management is unable to provide employment due to non-


availability of work is called

I. Lock out

II. Lay off

III. Termination

IV. Closure

Find the correct combination according to the code.

(A) I & II (B) II & III

(C) I & III (D) II & IV

8. Which one of the settlement methods is not relevant here for disputes ?

(A) Collective Bargaining

(B) Compulsory Adjudication

(C) Voluntary Arbitration

(D) Reference to Civil Court

9. Which of the following shows a situation of Trade Union rivalries in India?

(A) Different Unions in different organizations.

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(B) More unions in the same organization having affiliation with different political
parties and representing the same type of workers.

(C) More unions in the same organization all representing different types of workers.

(D) None of the above

10. Reduction of Labor Force is called

(A) Termination

(B) Retrenchment

(C) Lay-off

(D) Right sizing

11. The process of establishing the value of jobs in a job hierarchy is known as

(I) Job analysis

(II) Job requirement

(III) Job evaluation

(IV) Performance evaluation

Find the correct combination according to the code.

(A) I & II (B) II & III

(C) III & IV (D) I & IV

12. Which of the following is the meaning of Human Resource Planning?

(A) Evaluation of job

(B) Satisfaction of the employees on the job

(C) Appraising the performance of employees

(D) It is the process by which an organization ensures that it has the right number and
kind of people at the right place, at the right time.

13. Induction refers to

(A) Giving training to the employees.


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(B) Giving incentive to the employees.

(C) Introducing employees to the organization culture and situation.

(D) Increasing the morale of the employees.

14. Which of the following is not a fringe benefit?

(A) Transport

(B) Subsidized canteen facilities

(C) Free education to the children

(D) Dearness Allowance

15. „X‟ and „Y‟ theory was prepared by

(A) Herzberg

(B) Maslow

(C) Porter and Lawler

(D) McGregor

16. Which of the following formula is used to calculate Pay Back Period when cash
inflows are constant?

(A) Fixed Assets/Current Assets

(B) Fixed Assets/Current Liabilities

(C) Initial Investment cost/Annual cash inflows

(D) None of the above

17. The P/E ratio approach to stock valuation is also known as

(A) Earnings multiplier approach

(B) Dividend discounting approach

(C) Required rate of return

(D) None of the above

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18. The capital structure theories which argue that capital structure is relevant to the
value of firm contain

I. Net Income Approach

II. Net Operating Income Approach

III. Traditional Approach

IV. Modigliani and Miller Approach

Find the correct combination according to the code:

(A) I & II are correct.

(B) I & III are correct.

(C) III & IV are correct.

(D) II & IV are correct.

19. Short term financing instruments may contain

I. Commercial Paper

II. Public Deposits

III. Term Loans

IV. Trade Credit

Find the correct combination according to the code.

(A) I, II & III are correct.

(B) II, III & IV are correct.

(C) III & IV are correct.

(D) I, II & IV are correct.

20. For calculating weighted average cost of capital, cost of each source of capital is
multiplied by proportion applicable to it. The proportions may be based on

(A) Book values only

(B) Target capital structure only


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(C) Market values only

(D) All of the above

21. Which of the following is not included in 7 P‟s of services marketing?

(A) Process (B) People

(C) Pricing (D) Public relations

22. Which of the following is not a stage in the new product development?

(A) Generation of ideas

(B) Business analysis

(C) Market segmentation

(D) Test marketing

23. Industrial marketing involves

(A) Business to Business

(B) Business to Customer

(C) Customer to Customer

(D) Retailer to Consumer

24. The concept of Marketing Myopia is propounded by

(A) Philip Kotler

(B) C.K. Prahalada

(C) Peter Drucker

(D) Theodore Levitt

25. In which stage of product life cycle, the company takes decision whether to
maintain, harvest or drop the product?

(A) Introduction (B) Growth

(C) Maturity (D) Decline

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26. Which of the following is the best technique to manage the existing products?

(A) Ansoff Matrix

(B) Balanced score card

(C) BCG Matrix

(D) Product life cycle analysis

27. Which of the following is not an element of production management?

(A) Plant (B) Profit

(C) Process (D) People

28. Production Management Tactical Planning decisions include

(A) Establishing parameters for measuring operational efficiency and productivity.

(B) Establishing quality specifications and test details.

(C) Determining starting and finishing time of each job in the work stations.

(D) None of the above

29. Work study refers to

(A) Analysis of work into smaller parts followed by re-arrangement of these parts to
give the same effectiveness at lesser cost.

(B) Analytical investigation of the methods involved in the work.

(C) Developing new methods to give work effectiveness.

(D) All of the above

30. Economic lot size is known as

(A) The lot size for which the total cost per time period is minimum.

(B) The ordering cost and carrying cost are minimum.

(C) The lot size that strikes a balance between ordering cost and carrying cost.

(D) The quantity to be ordered each time is fixed.

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31. Objective of Value Engineering is

(A) Reduce cost without reducing the quality.

(B) Increase value without increasing the cost.

(C) Reduce cost by reducing the quality.

(D) None of the above

32. If the independent variates x I (i = 1, 2, …..n) are normally distributed about a


common mean, a, with a common variance, σ2, their mean is also normally distributed
about a, but with a variance

(A) nσ2
(B) σ2n
(C) (σ2)n
(D) σn/2

33. The weak law of large numbers is another version of

(A) Convergence in probability

(B) Random number generation

(C) Financial probability law

(D) Poisson probability law

34. The basic assumptions underlying the t-test for the difference of two sample means
are that the parent populations are and population variances
are

(A) Of any shape; equal and known

(B) Normal; equal and known

(C) Normal; equal but unknown

(D) Normal; unequal but known

35. LAN stands for

(A) Large Area Network

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(B) Local Area Network

(C) Long Accurate Network

(D) Lay Access Network

36. If X is normally distributed with mean 30 and s.d. 5 and φ (x) denotes: - 1 ʃ e - 1/2 t²
dt then P (26<X<40) and P (X > 45) given by:- √2π

(a) Φ (.8) + φ (.2) and φ(3) -1/2

(b) Φ (2) - φ (.8) and 1/2 -φ(3)

(c) Φ (2) - φ (.8) and 1/2 +φ(3)

(d) Φ (2) + φ (.8) and 1/2 φ(3)

37. What enables the management to find out whether the strategic management
process are appropriate, compatible and functioning in the desirable direction?

(A) Implementation control

(B) Special alert control

(C) Premise control

(D) Strategic control

38. Which one is not the part of Michael Porter‟s five forces model?

(A) Threat of substitutes

(B) Firm‘s core competence

(C) Rivalry among existing players

(D) Threat of new entrants

39. Which of the following strategy is regarded unfair?

(A) Collusion

(B) Strategic alliance

(C) Differentiation

(D) Turnaround strategy


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40. Which of the following relationship strategies result into forming of a new
organization?

(A) Strategic alliance

(B) Partnership

(C) Joint venture

(D) None of the above

41. A growth strategy is designed to increase

(A) The scale and scope of the Business operations.

(B) The corporate image of the business.

(C) Corporate social responsibility of business.

(D) None of the above.

42. Cost leadership strategy is related to

(A) Functional strategy

(B) SBU strategy

(C) Corporate strategy

(D) Global strategy

43. Countries derive their competitive advantage in international trade through their

(A) Comparative cost advantage

(B) Contribution to the World trade

(C) Natural endowments

(D) All of the above

44. Which analysis helps to understand the strength and weaknesses of a firm?

(A) Environment analysis

(B) Business analysis

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(C) SWOT analysis

(D) None of the above

45. Which one of the following is not the social responsibility of business?

(A) Adopting village for development.

(B) Providing drinking water and medical facilities in remote villages.

(C) Construction of Temples.

(D) Opening in House R & D department.

46. What is the acronym for SIDBI?

(A) Short Investment Development Bank of India.

(B) Stock Investment Development Bank of India.

(C) Small Investment Development Bank of India.

(D) Small Industries Development Bank of India.

47. Identify from the options given below, which one is not a source of business ethics?

(A) Religion

(B) Legal system

(C) Culture

(D) Political system

48. Where law fails,

(A) Ethics also fails

(B) Ethics can succeed

(C) Government can protect

(D) None of the above

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49. Which one of the options is not an ethical issue for an organization?

(A) Save water

(B) Sav