UGC NTA NET Management December 2019: Solved Question Paper Q 67. Direct marketing is carried out in variety of ways. Some of the main forms of direct marketing are i) Mail order marketing ii) Telemarketing iii) Online marketing iv) Direct selling Which of the following option is correct? (A). i, ii and (8). i, ii, ifi and iv (C)ei, ii, iv (D). iand ANSWER.A EXPL. Direct marketing occurs when the “producer” connects with the end user. ‘The end user may be a consumer or a business. i only only. Direct marketing applies to product and servicé-oriented businesses, and to non-profit, organizations. In all situations, there is no’ intetmediary involved. Direct marketing describes this interactive communication with the end user. Organizations may use several way8'to leverage Gifect marketing as they communicate with and deliver products to their customers, Types of Direct Marketing The most common forms of direct marketing are: + Internet marketing + Face-to-face selling + Direct mail (Mail-order marketing) + Catalogues + Telemarketing + Direet-response advertising Kiosk marketing Let's look at these in more detail. Mail-order marketing is also called as direct-mail marketing. This is the method of merchandising in which the seller’s offer is made through mass mailing of a circular or catalogue or through an advertisement placed in a newspaper or magazine and in which the buyer places an order by mail. Delivery of the goods may be made by freight, express, or parcel post on a cash-on-delivery basis. Telemarketing www.eduexpertus.com 1| Page Call: 8923987373, Email: support@eduexpertus.comUGC NTA NET Management December 2019: Solved Question Paper ‘The process of contacting people on a qualified list to sell services over the phone has grown in popularity to the point that the average household receives 19 telemarketing calls each year. Successful telemarketing campaigns depend on a good calling list, an effective script and contact structure, and well-trained people that are compensated and rewarded for making calls that result in sales. ‘The telecommunications industry, for example, has used telemarketing extensively to attempt to increase their market share. Online marketing Direct Selling: Direct selling refers to selling products directly to the consumer in a non-retail environment. Don't confuse direct selling with direct) marketing. Direct selling is when individual sales people reach out to consumers directly, whereas direct marketing is when a company markets directly to the consumef: Q 68. As RBI guidelines (2008), an MSME is to have reached the Stage of incipient sickness if the following events are triggered (i) When there are cost overruns because of delay in commencement of commercial production by more than 6 months (ii) The enterprise incurs losses {oF 2'years Or GASH loss for one year (iii) The capacity utilization is less than 50% of the projected levels in terms of sales (iv) There is erosion in net worthdue'to accumulated cash losses to the extent of 50 percent of net worth during the previous accounting year Which one of the following is correct? (A). iand ii only (B). i, ii and iii only (C). ii and fii only (D). iti, iii and iv only ANSWER. B EXPL. According to RBI website GENERAL GUIDELINES FOR REHABILITATION OF SICK MSEs 1, Handholding stage or (Incipient sickness) ‘Timely and adequate assistance to MSEs and rehabilitation effort should begin on a proactive basis when early signs of sickness are detected. This stage would be termed as ‘handholding stage’ as defined below. This will ensure intervention by banks immediately after detecting early symptoms of sickness so that sickness can be arrested at an early stage. An account may be treated to have reached the ‘handholding stage’; if any of the following events are triggered: www.eduexpertus.com 2|Page Call: 8923987373, Email: support@eduexpertus.comUGC NTA NET Management December 2019: Solved Question Paper a. There is delay in commencement of commercial production by more than six months for reasons beyond the control of the promoters; b. The company incurs losses for two years or cash loss for one year, beyond the accepted timeframe; c. The capacity utilization is less than 50% of the projected level in terms of quantity or the sales are less than 50% of the projected level in terms of value during a year. 2. Sick stage A Micro or Small Enterprise (as defined in the MSMED Act 2006) may be said to have become Sick, if a. Any of the borrowal account of the enterprise remains NPA for three months or more OR b. There is erosion in the net worth due to accumulatedilosses to the extent of 50% of its net worth during the previous accounting year. 69, Theory of Comparative Advantage given by David Ricardo in 1817 (A) Two Commodity and One Factor theory. (B) Two Commodity and Two Factor.theory: (C) Two Country, Two Commodity and Two Factor theory (D) Two Country, Two Commodity and.One Factor theory ANSWER. D EXPL. Assumptions of Comparative Advantage Theory given by David Ricardo David Ricardo, an Englisheconomist, introduced the theory of comparative advantage in 1817. Ricardo reasoned that even if Country A had the absolute advantage in the production of both products, specialization and trade could still occur between two countries! Comparative advantage occurs when a country cannot produce a product more efficiently than the other country; however, it can produce that product better and more efficiently than it does other goods. Comparative advantage theory is two Country, two Commodity and one Factor theory. Labour is the only productive input as far as the value of the commodity is concerned. Value of a commodity is determined by the amount of labour embodied in it. Thus, the production cost is measured in terms of labour cost only. Let's look at a simplified hypothetical example to illustrate the subtle difference between these principles. Pratibha is a Supreme Court lawyer who charges Rs 5000 per hour for her legal services. It turns out that Pratibha can aiso type faster than the administrative assistants in her office, who are paid Rs.400 per hour. Even though Pratibha clearly has the absolute advantage in both skill sets, should she do both jobs? No. For every hour Pratibha decides to type instead of do legal work, she would be giving up Rs.4600 in income. Her productivity and income will be highest if she specializes in the higher-paid www.eduexpertus.com 3| Page Call: 8923987373, Email: supporti@eduexpertus.comUGC NTA NET Management December 2019: Solved Question Paper legal services and hires the most qualified administrative assistant, who can type fast, although a little slower than Pratibha. By having both Pratibha and her assistant concentrate on their respective tasks, their overall productivity as a team is higher. This is comparative advantage. A person or a country will specialize in doing what they do relatively better. In reality, the world economy is more complex and consists of more than two countries and products. Barriers to trade may exist, and goods must be transported, stored, and distributed. However, this simplistic example demonstrates the basis of the comparative advantage theory. Q70. Mateh List I with List IT List 1 (Theories of International Trade) (a) Theory of Absolute Advantage (b) Factor Proportion Theory (c) Country Similarity Theory (@) Product Life Cycle Theory List 11 (Propounder (s)) i, Raymond Vernon ii, Steffan Linder iii, Heckscher Ohlin iv. Adam Smith, Choose the correct option from the given below: (A). ai, bs (8). at bei, coi, di id-iv (Ciaiv, bili, c-iiyd-i (D).‘a “iii, b- ANSWER. C EXPL, Theory of Absolute Advantage > Adam Smith In 1776, Adam Smith questioned the leading mercantile theory of the time in The Wealth of Nations. Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations. Recent versions have been edited by scholars and economists. Smith offered a new trade theory called absolute advantage, which focused on the ability of a country to produce a good more efficiently than another nation. Smith reasoned that trade between countries shouldn't be regulated or restricted by government policy or intervention. He stated that trade should flow naturally according to market forces. In , Civ, dei www.eduexpertus.com 4| Page Call: 8923987373, Email: support@eduexpertus.comUGC NTA NET Management December 2019: Solved Question Paper a hypothetical two-country world, if Country A could produce a good cheaper or faster (or both) than Country B, then Country A had the advantage and could focus on specializing on producing that good. Similarly, if Country B was better at producing another good, it could focus on specialization as well. By specialization, countries would generate efficiencies, because their labor force would become more skilled by doing the same tasks. Production would also become more efficient, because there would be an incentive to create faster and better production methods to increase the specialization. ‘Smith’s theory reasoned that with increased efficiencies, people in both countriés would benefit and trade should be encouraged. His theory stated that a nation’s “wealth shouldn't be judged by how much gold and silver it had but rather ‘by\the living standards of its people. Factor Proportion Theory > Heckscher Ohlin Eli Heckscher and Bertil Oblin, focused their attention on how a country could gain comparative advantage by producing products that utilized factors.that were in abundance in the country. Their theory is based on a country’s production factors— land, labor, and capital, which provide the funds forsinvestment in plants and equipment. They determined that the cost of any factor or resource was a function of supply and demand, Factors that were in great supply relative to demand would be cheaper; factors in great demand relative to supply wouldebe more expensive. Their theory, also called the factor proportions theory, stated that countries would produce and export goods that required resources or factors that were in great supply and, therefore, cheaper production factors. In contrast, countries would import goods that required resources that were in short supply, but higher, demand. Country Similarity Theory > Steffan Linder ‘Swedish economist Steffan Linder developed the country similarity theory in 1961, as. he tried to explain the concept of interindustry trade. Linder’s theory proposed that consumers in countries that are in the same or similar stage of development would have similar preferences. In‘this firm-based theory, Linder suggested that companies first produce for domestic consumption. When they explore exporting, the companies often find that markets that look similar to their domestic one, in terms of customer preferences, offer the most potential for success. Linder’s country similarity theory then states thatmost trade in manufactured goods will be between countries with similar per capita incomes, and interindustry trade will be common. This theory is often most useful in understanding trade in goods where brand names and product reputations are important factors in the buyers’ decision-making and purchasing processes. Product Life Cycle Theory > Raymond Vernon Raymond Vernon, a Harvard Business School professor, developed the product life cycle theory in the 1960s. ‘The theory, originating in the field of marketing, stated that a product life cycle has three distinct stages: (1) new product, (2) maturing product, and (3) standardized product. The theory assumed that production of the new product will occur completely in the home country of its innovation. In the 1960s this was a useful theory to explain the manufacturing success of the United States. US manufacturing was the globally dominant producer in many industries after World War Il. www.eduexpertus.com 5| Page Call: 8923987373, Email: support@eduexpertus.comUGC NTA NET Management December 2019: Solved Question Paper Q71. Why has the bureaucratic form of organization been fundamentally questioned? (A) Pressure of Globalization has rendered it unsuitable (B) Organizations are experiencing acute pressure to change and pursue innovation as a means of securing business growth (C) Organizations grown so large that it is almost impossible to create an éffective bureaucracy to manage them (D) Information Technology has made it redundant ANSWER. (B) EXPL. A bureaucratic organization is a form of management that has a pyramidal command structure. The bureaucratic organization is very organized with a high degree of formality in the way it operates. Organizational charts generally exist for every department, and decisions are made through an organized process. A strict command and control structure is present at all times. One major disadvantages of a bureaucratic structure is reduced productivity and innovation. The bureaucratic organizational structure may inhibit productivity, diminish innovation and decrease morale. The structure is inherently laden with rules and more policies and procedures can be added at any time, making workloads and roles more complicated. There is less freedom to act within a bureaucratic structure. Rules and laws abound, making people accountable and responsible to a governing body. Q 72. Marketing feasibility of any idea includes the following aspects: () Current and future‘demand estimates (ii) Market segmentation nd identification of target markets (iii) Competition analysis (iv) Marketesting Which of the following option are correct? (A),i), (i) and (ii) only ©) (i), (ii) ana Gv) only (C) (and (ii) only (D) Gi, (i), (ii) and (iv) ANSWER. A EXPL. A Feasibility Study is a first step in exploring a new business idea. It can be instrumental in flushing out a business idea, as well as determining if further investment into the idea is warranted. In short, it provides a framework by which a www.eduexpertus.com 6 | Page Call: 8923987373, Email: support(@eduexpertus.comUGC NTA NET Management December 2019: Solved Question Paper “go” or “no-go” decision can be reached. Additionally, a well-rounded feasibility study can serve as a solid foundation for a full-fledged business plan. Outline for comprehensive feasibility study /analysis: 1) Product Feasibility a) Product Desirability b) Product Demand * Current Demand * Future Demand 2) Market Feasibility a) Industry Attractiveness b) Segmenting Market ¢) Target Market Identification 4) Competition Analysis 3) Organisational Feasibility 4) Financial Feasibility As far as market testing is concern, it is performed once we have developed the final product. Q 73. Homogenous subsets in the sampling are called (A). Clusters (B). Sample (C). Samples Sizes (D). Strata ANSWER. D EXPL. Sampling is the statistical process of selecting a subset (called a “sample”) of a ‘population of interest for purposes of making observations and statistical inferences about that population. Probability Sampling Probability sampling is a technique in which every unit in the population has a chance (non-zero probability) of being selected in the sample, and this chance can be accurately determined. ‘Types of Probability Sampling www.eduexpertus.com 7|Page Call: 8923987373, Email: support@eduexpertus.comUGC NTA NET Management December 2019: Solved Question Paper Simple random sampling. In this technique, all possible subsets of a population (more accurately, of a sampling frame) are given an equal probability of being selected. Systematic sampling. In this technique, the sampling frame is ordered according to some criteria and elements are selected at regular intervals through that ordered list. In Stratified sampling, the sampling frame is divided into homogeneous and non- overlapping subgroups (called “strata”), and a simple random sample is drawn within each subgroup. Cluster sampling. If you have a population dispersed over a wide geographic region, it may not be feasible to conduct a simple random sampling of the entire population.In such case, it may be reasonable to divide the population into “clusters” (usually along geographic boundaries), randomly sample a few clusters, and measure fall units within that cluster. Q 74. The situation of simultaneous satisfaction of row minima and column minima rule is termed (A) Unboundedness (B) Infeasibility (C) Degeneracy (D) Post-optimality analysis ANSWER. C EXPL. In transportation problems\while Solving for initial solution with Vogel's approximation method, a condition of simultaneous satisfaction of row minima and column minima is termed as degeneracy. Q. 75. The combined leverage (i) Is the summation of the degree of operating leverage and the financial leverage? (ii) Meastires total risk of the firm (iii Is the difference between the degree of operating leverage and financial leverage {iv]It indicates the/effect that changes in sales will have on earning per share Choose the correct option (A). @) and fii) (B). (ii)jand (ii) (C). (ii) and (iv) (D). (iii) and (iv) ANSWER.C EXPL. When the company uses both financial and operating leverage to magnification of any change in sales into a larger relative change in earning per www.eduexpertus.com 8| Page Call: 8923987373, Email: supporti@eduexpertus.comUGC NTA NET Management December 2019: Solved Question Paper share, Combined leverage is also called as composite leverage or total leverage. It measures total risk of the firm. Combined leverage expresses the relationship between the revenue in the account of sales and the taxable income. Combined leverage can be calculated with the help of the following formulas: CL= OL FL The percentage change in a firm’s earning per share (EPS) results from one percéAit change in sales. This is also equal to the firm’s degree of operating leverage (DOL) times its degree of financial leverage (DFL) at a particular level of sales. Degree of contributed coverage = Q76. Match the following approaches of moral reasoning with their propounders Moral Reasoning (a) Consequentialism Approach (b) Deontological Approach (c) Natural law theory (@) Theological Approach Propounder(s) (i) Thomas Hobbes, Ayow Rand (ii) Aristotle (iii) Ronald White liv) W.D. Ross, John Rawls Choose the correet option from the following. (A) a-i, Driv, c-iii, dit (B) ai, b-iti)c-i,d-iv (C) abi, b-iy, ci, d-iii (Dj a- i, b-ii, c-iv, d-iti EXPL. Consequentialism Approach > Thomas Hobbes, Ayow Rand According to Hobbes values are assessed purely in accordance with the consequences of actions. If an action produces a desirable result in a given situation then the act is “good”. They are essentially instrumental and nonmoral in character. Deontological Approach > W.D. Ross, John Rawls www.eduexpertus.com 9| Page Call: 8923987373, Email: supporti@eduexpertus.comUGC NTA NET Management December 2019: Solved Question Paper Sir William David Ross KBE FBA (15 April 1877 - 5 May 1971), known as David Ross but usually cited as W. D. Ross, was a Scottish philosopher who is known for his work in ethics. His best-known work is The Right and the Good (1930), and he is perhaps best known for developing a pluralist, deontological form of intuitionist ethics in response to G. E. Moore's consequentialist form of intuitionism. Ross also critically edited and translated a number of Aristotle's works, in addition to writing on Greek philosophy. John Rawls is a deontologist as well. His book, A Theory of Justice establishes thata system of wealth redistribution ought to be created such that it abides by a spetific set of moral rules. Another way of looking at deontology is that it is opposed teleological'theories such as consequentialism. In this sense Deontology is concerned with finding the right actions that one should perform to produce the 'good’, while teleology is concerned with isolating the meaning of the 'good' and then stating that a right action is one which will produce said good. Thus, as well as formulating his categorial imperative Kant also states that one is acting morally when one performs one’s duty to fullil the categorical imperative Natural law theory > Ronald White Natural law theory is a legal theory that recognizes law and morality as deeply connected, if not one and the same. Morality relates to what is right and wrong and what is good and bad. Natural law theorists believe that human laws are defined by morality, and not by an authority figure, like a king or a government. Therefore, we humans are guided by our human nature to figure out what the laws are, and to act in conformity with those laws. ‘Theological Approach > Aristotle When Aristotle speaks/of theologiké)he’means not the study of a single God, but the study of gods and divine things in general. He never uses the phrase “the unmoved mover” to pick out just one being (or even to pick out the many movers of the heavenly spheres), and that phrase Would not express the essence of the beings it applies to. To see what sort of religious interest there might be in such a being, and how the words “god” and “divine” enter into Aristotle's philosophy, it is best to start with what he says about gods and divine things in moral and political contexts. Guided by his criticisms of Plato on the soul's self-motion, Aristotle sets out, in Physics VIII, to give a revised version of Plato's Cosmo theological argument in Laws X. www.eduexpertus.com 10 | Page Call: 8923987373, Email: supporti@eduexpertus.comUGC NTA NET Management December 2019: Solved Question Paper Q 77. Given below are two statements labelled as Assertion (A) and Read the statements and answer the question that follows: Assertion (A): The basic thrust of strategic decision making in the process of strategic management is to make a choice regarding the courses of action to adopt, which is the primary task of the senior management Reasons (R): This is so because the basic concern in strategic management is\to/seeke answers to questions. What is our business? What will it be? And what should it be? Which of the following options is correct? (A) Both the statements (A) and (R) are correct and (R) is the rightexplanation of (A) (B) Both the statements (A) and (R) are correct but (R) is not thejrightexplanation of (A) (C] Statement (A) is correct but statement (R) is incorrect (D) Both statements (A) and (R) are incorrect ANSWER.A EXPL. The basic thrust of strategic decision-making, invthe progress of strategic management, is to make a choice regarding thé courses of action to adopt. Thus, most aspects of strategy formulation rest on strategic decision-making. The fundamental strategic decision relates to the choice of a mission.In other words, the basic concern in strategic management is to seekxanswers to questions such as: 1) What is our business? 2) What will it be? 3) What should it be? With regard to objeCtive-setting, the senior management is faced with alternatives regarding the different yardsticks to measure performance. Finally, at the level of choosing a strategy, the senior management exercises a choice from among a number of strategic alternatives in order to adopt one specific course of action which would make the company achieve its objectives and realise its mission, Q78. There 7 elements personal selling which are in certain at the time of making sales to customers by salesperson. The correct sequence is (A)Prospecting, approach, pre-approach, presentations, overcoming objections, follow -up and closing (B). Pre approach, approach, prospecting, presentation, overcoming objections follow up and closing (C). Prospecting, pre approach, approach, presentation, overcoming objections, closing, follow up (D}. Approach, prospecting, pre approach, overcoming objections, presentation, closing and www.eduexpertus.com 11 | Page Call: 8923987373, Email: supporti@eduexpertus.comUGC NTA NET Management December 2019: Solved Question Paper follow up ANSWER.C Personal selling is when salespersons use a process to engage customers and take a sales order that may not otherwise have been made. Personal selling is when a company uses salespersons to build a relationship and engage customers to determine their needs and attain a sales order that may not othenwise have been placed. ‘The personal selling process is a seven-step approach: Prospecting and Evaluating Pre-approach Approach Presentation Meeting Objections Closing the Sale Follow-up. Q.79. Identify the combination of properties of point estimates the options given below: (i) Efficiency (ii) Consistency (iil) Adequacy (iv) Unbiasedness Choose correct option: (A). §, ii and iii (8). i, iii and iv (C). i, iti and iv (0). i, ii andy ANSWER. D EXPL. Point estimators are functions that are used to find an approximate value of a popillation parameter from random samples of the population. They use the sample data of a population to calculate a point estimate or a statistic that serves as the best estimate ofan unknown parameter of a population. Relative Efficiency - We would like to have an estimator with smaller bias and smaller variance: if one can find several unbiased estimators, we want to use an estimator with smaller variance. Consistency tells us how close the point estimator stays to the value of the parameter as it increases in size. The point estimator requires a large sample size for it to be more consistent and accurate. You can also check if a point estimator is consistent by looking at its corresponding expected value and variance. For the point estimator to be consistent, the expected value should move towards the true value of the parameter. www.eduexpertus.com 12 | Page Call: 8923987373, Email: support@eduexpertus.comUGC NTA NET Management December 2019: Solved Question Paper Most efficient or unbiased : The most efficient point estimator is the one with the smallest variance of all the unbiased and consistent estimators. The variance measures the level of dispersion from the estimate, and the smallest variance should vary the least from one sample to the other. Generally, the efficiency of the estimator depends on the distribution of the population. For example, in a normal distribution, the mean is considered more efficient than the median, but the same does not apply in asymmetrical distributions. Q80. In Queuing Theory, statistical pattern by which customers arrive over;a period of time Follows (A) Binomial distribution (B) Normal distribution (C) Poisson distribution (D) Long, normal distribution ANSWER. C EXPL. Queuing theory deals with problems that involve waiting (or queuing). It is quite common that instances of queue occur every day.in our daily life. Examples of queues or long waiting lines might be + Waiting for service in banksiand atreservation Counters. + Waiting for a train or a.bus. * Waiting for checking out at the Supermarket * Waiting at the telephone booth or’a barber's saloon. ‘The Arrival Pattern in Queuing Theory: The arrival pattern describes how a customer may become a part of the queuing system. The arrival time for any customer is unpredictablesTherefore, the arrival time and the number of customers arriving at any specified/time intervals are usually random variables. A Poisson distribution of arrivals correspond to arrivals at random. In Poisson distribution, successive customers, arrive after intervals which independently are and exponentially distributed. ‘The Poisson distribution is important, as it is a suitable mathematical ‘model of many practical queuing systems as described by the parameter “the average arrivalrrate’ Q81.The strategic issues to which a retailing firm has to respond are: (i) Location decisions (ii) Brand building decisions (iii) Merchandise mix decisions (iv) Target market selection www.eduexpertus.com 13 | Page Call: 8923987373, Email: supporti@eduexpertus.comUGC NTA NET Management December 2019: Solved Question Paper Which of the following option is correct? (A). i, ii and iii only (B). i and iii only (C).4, i, ii and iv (0). i, iii and iv ANSWER. D EXPL. EXPLANATION. Retailing involves selling of goods and services to the ultimate consumers\for their personal consumption. Strategic issues which a retailing firm has to necessarily respond to, include: 1) Location Decisions 2) Target Market Selection Decisions 3) Business Model Decisions 4) Merchandise Mix Decisions 5) Positioning the Retail Store Q82.Customer Life Time Value (CLY) in the first year is (A) CLV = mx (<5) (B) CLV=m+(25) (C) CLV=m-( (0) CLv= m« (45) ANSWER. A EXPL. Customer Lifetime Value (CLV) represents the total amount of money a customer is expected to spend in your business, or on your products, during their lifetime. Formula for calculating the same is: = CLV =) m——; x (1+djt m: revenue per period TF; retention rate per period d: discount rate (cost of capital) T; time horizon For the first-year t = 1, therefore putting t = 1 in the above equation, Therefore, www.eduexpertus.com 14 | Page Call: 8923987373, Email yertus.comUGC NTA NET Management December 2019: Solved Question Paper CLV = m x ( Q83.The difference between the point estimate and the true value of. population parameter being estimated is known as (i) Sampling error (i) Estimation error (iii) Probable error (iv) Standard error Choose the correct option the options given below: (A). (i) and (iii) only (8). (ii) and (iv) only (©). (i) and (ii) only (D). (i) and (iii) only. ANSWER. C EXPL. Sample statistics or statistics are Observable because we calculate them from the data (or sample) we collect. We use the "statistics" calculated from the sample to estimate the value of interest in the\population, We call these sample stat 8 "point estimates" and this value of interest in the population, a population parameter. An example, would be to use the sample mean as a point estimate of the population mean, here the population mean is the population parameter we are interested in finding out about In other words. 4 point estimate is a sample statistic obtained from the observed sample, and is used as our best guess of the unobserved population parameter. Sampling error is the error caused by observing a sample instead of the whole population. The Sampling error is the difference between a sample statistic used to estimatea population parameter and the actual but unknown value of the parameter. In/Other words. sampling error is the difference between the point estimate and population parameter. Estimation error is the difference between actual parameter and estimated parameter. It is similar to sampling error. In statistics, probable error defines the half-range of an interval about a central point for the distribution, such that half of the values from the distribution will lie within the interval and half outside. It has nothing to do with point estimate and the true value of population parameter. Standard error: The standard error is a statistical term that measures the accuracy with which a sample distribution represents a population by using standard deviation. www.eduexpertus.com 15 | Page Call: 8923987373, Email: support@eduexpertus.comUGC NTA NET Management December 2019: Solved Question Paper Q 84. Match List I with List 11 List I (Strategy) (a) Merger (b) Acquisition (c) Takeover (a) Hostile bid List II (Example) i, HUI-TOMCO ii, Kelvinator Whirlpool iii, DiamleiThrysler.AG iv. L & T Technology-Mind Tree Choose the correct option from the given below: (A). a- i, bei, coli, d-iv (B). a- iii, b- (CQ). @ ii, bi (D). a-iii, b-i, c-ii, div ANSWER. C EXPL. Merger > Kelvinator Whirlpool Acquisition > 1 & T Technology-Mind Tree Takeover > _ HUI-ROMCO Hostile bid > Diamlei@htysler.AG A mergers a corporate strategy of combining different companies into a single company inorder to enhance the financial and operational strengths of both organizations. It is the voluntary:fusion of two companies on broadly equal terms into a new legal entity, Whirlpool Washing Machines Ltd. (WWML) was merged into Kelvinator of India and thé name of the latter was changed to Whirlpool of India. An aquisition is defined as a corporate transaction where one company purchases a portion or all of another company’s shares or assets. Acquisitions are typically made in order to take control of, and build on, the target company’s strengths and capture synergies. On June 2019, L&T gained a controlling stake in Mindtree, with a share of 60 per cent. , civ, dei ci, dil A takeover is a special form of acquisition that occurs when a company takes control of another company without the acquired firm’s agreement. Takeovers that occur without permission are commonly called hostile takeovers. Acquisitions, also referred to as www.eduexpertus.com 16 | Page Call: 8923987373, Email: suy (@eduexpertus.comUGC NTA NET Management December 2019: Solved Question Paper friendly takeovers, occur when the acquiring company has the permission of the target company’s board of directors to purchase and take over the company. In 1993, Tata Oil Mill Company (TOMCO) was acquired by HUL (then Hindustan Lever) A hostile bid is a specific type of takeover bid that bidders present directly to the target firm's shareholders because the management is not in favor of the deal. Bidders generally present their hostile bids through a tender offer. In this scenario, the acquiring company offers to purchase the common shares of the target at a substantial premium. Daimler-Benz was renamed DaimlerChrysler AG upon acquiring the American automobile manufacturer Chrysler Corporation in 1998. Q85. When managers commit errors of over optimism in evaluating merger opportunities due to excessive pride or animal spirit is termed as (A) Managerialism (B) Information Signalling (C) Hubris Hypothesis (D) Sitting on gold mine ANSWER.C EXPL. Hubris is the characteristic of excessive confidence or arrogance, which leads a person to believe that he or she may do no wrong. Managerial hubris is the unrealistic belief held by managers in bidding firms that they can manage the assets of a target firm more efficiently than the target firm's current management. Managerial hubris is one reason a manager may choose to invest in a merger that on average generates no profits. The hubris theory claims that the management of acquiring firms over rates their ability to evaluate potential acquisition targets. As a result, bidders pay too much for their targets. Managerialism is the philosophy or practice of conducting the affairs of an organized group (a businéss.or a nation) by planning and directions by professional managers. It is a belief in or reliance on the use of professional managers in administering or planning an activity. Information signalling is conveying intelligence through a firm's actions. A firm's dividend policy, for example, provides signals to investors concerning the value of the firm's stock.\Information signalling hints as to a company's financial state and/or goals given through its actions. For example, a new issue of bonds may be an indication of plans for future expansion of operations and may affect the stock price. Sit on a gold mine: To possess or have access to something that will yield a very large amount of money, especially when that thing has yet to be profited from fully. Q 86. Match the terms with the statement given below: List 1 {a) Human behaviour results from a continuous and multidirectional interaction between the www.eduexpertus.com 17 | Page Call: 8923987373, Email: support@eduexpertus.comUGC NTA NET Management December 2019: Solved Question Paper person and the situation (b) People are central to the organization and they must be developed to their potential (c) Manager's efficiency depends on optimum utilization of resources (d)The belief that there is no one best option available for an organization List 2 (i) Internationalism (ii) Productivity Approach (iii] Contingency Approach (ivJHR Approach Select the correct option: (A) a- i, beiv, c-ii, d-iii (B) a4, bei, c-ii, d-iv (3) ai, b-ii, e-ii, d-iv EXPL. The interactional approach considers both psychological traits and situational influences on behaviour. The two aspects mix and can alter behaviour. The psychological traits and environmental influences interact and mix in unique ways to sculpt the behaviour. Interactional psychology emphasizes continuous, multidirectional interaction between person and situation characteristics. This perspective suggests that, organizational behaviour researchers should focus more attention on person factors that might be expected to mediate the effects of situation factors, and vice versa. Productivity means the numerical value of the ratio of output to input. Higher the value of this ratio, greater is the efficiency and effectiveness of the management. The traditional concept of productivity was concerned with economic inputs and output. It focused on optimum use of resources. But nowadays human and social inputs and outputs are equally important. Productivity, a significant part of organisational behaviour decisions, is recognized and discussed extensively. These decisions relate to human, social and economic issues. For example, if better organisational behaviour can reduce worker's turnover or the number of absentees, a human output or benefit occurs. Contingency Approach is based on the concept that there is ‘no one best way’ in management. For every situation there is a set of circumstances, which determine how a Situation is to be dealt with. This approach is sometimes also called the ‘Situational Approach’. As given by the name, it is all about dealing with a situation by focus on it alone and not comparing with any other. It states that every situation is unique and not one situation is the same as another; and each situation should be dealt with differently. Human resource approach is the strategic approach to the effective management of people in a company or organization such that they help their business gain a competitive advantage. It is designed to maximize employee performance in service of an employer's strategic objectives. Human resource management is primarily concerned www.eduexpertus.com 18 | Page Call: 8923987373, Email: supportiieduexpertus.comUGC NTA NET Management December 2019: Solved Question Paper with the management of people within organizations, focusing on policies and systems. HR departments are responsible for overseeing employee-benefits design, employee recruitment, training and development, performance appraisal, and reward management, such as managing pay and benefit systems. Q87. The major factor that allowed Portfolio Theory to develop into Capital Market Theory is (A) Risk free asset (B) Homogenous expectations (C) Infinite divisibility of assets (D) Absence Of taxes and transaction Costs ANSWER.A EXPL. The major factor that allowed portfolio theory/to develop/into capital market theory is the concept of a risk-free asset. Such an asset;would have zero variance and zero correlation with all other risky assets and would’provide the risk-free rate of return (RFR) The capital market theory is a major extenSion Of the portfolio theory of Markowitz. Portfolio theory is a description of how rational investors should build efficient portfolios by taking minimum risk. Capital market theory-tells how-assets should be priced in the capital markets if, indeed, everyone behaved in the way portfolio theory suggests. This assumption of a risk-free asseP allows us to derive a generalized theory of capital asset pricing under conditions of uncertainty from the portfolio theory. Q88.Which of the following methods of capital budgeting is best suited for leveraged projects? (A) Net presefitivalue (B) Intemnal rate of return (C),Accountting rate of return (0) Profitability index ANSWER.A EXPL. Net Present Value Method is the best capital budgeting method for leveraged projects. NPV gives importance to the time value of money. It determines how much cash will flow in as a result of the investment, and compares that against the cash that will flow out in order to make the investment. Merits of NPV method 1. It recognizes the time value of money. 2. It considers the total benefits arising out of the proposal. www.eduexpertus.com 19 | Page Call: 8923987373, Email: support@eduexpertus.comUGC NTA NET Management December 2019: Solved Question Paper 3. It is the best method for the selection of mutually exclusive projects. 4. It helps to achieve the maximization of shareholders’ wealth. Q89. Whistle blowing is normally unjustified in case of the followin; (i) Ulterior motive, Breach of trust (ii) To protect public interest (iii) Insufficient evidence (iv) To inspire other employees Choose the correct option (A) (i) and (ii) (B) (i) and (ii) (©) (ii) and (ii) {D) (i) and (iv) ANSWER. B EXPL. Whistleblowing is the act of disclosing information from a public or private organization in order to reveal cases of corruption that are of immediate or potential danger to the public. The conditions in which whistle blowing is morally justified are: 1. A product or policy that,will commit Serious and considerable harm to the publi 2. When the employee identifies a’ serious threat of harm to the consumers, employees, other stakeholder, state and things against his or her moral concern. 3. Immediate Supervisor does not act, should exhaust the internal procedures and chain of command to the board of directors. No action is taken in spite of best efforts of the employees to remedy the situation of unethical actions. 4.“The employee must have documented evidence that is convincing to a reasonable level so that the facts can be proved to the outside public and to the test of the law. 5),Valid reasons to believe that revealing the wrongdoing to the public will result in the changes in the organisation are necessary to remedy the situation. The chance of succeeding must be equal to the risk and danger the employee takes to blow the whistle Clearly, when there are insufficient evidence and ulterior motives it is not justified www.eduexpertus.com, 20 | Page Call: 8923987373, Email: eupport@eduexpertus.comUGC NTA NET Management December 2019: Solved Question Paper Q90. Human Resource (HR) procedures for an important element of consistency in which managerial perspective? (A). Direction (B) Strategy (C). Decision Making (D). Recruitment ANSWER.C EXPL. The existence of formal, bureaucratic procedures for dealing with HRM matters can be advantageous for managers. Using procedures can help \\to legitimate management decisions by demonstrating that they have been reached in amapparently fair manner. The decision to reject an employee's complaint about his/her treatment at work is more likely to be accepted if it has been arrived at according tothe rules and regulations extant in the organization. Procedures provide for consistency in managerial decision-making. Start Passage Comprehension Kruger Corporation has recently implemented a standard cost system. The management has obtained the following information for variance analysis: (a) Standard cost information: Direct materials Quantity allowed perinit Direct labour rate Hours allowed perunit Fixed overhead budget Normal level of production Fixed overhead application rate Variable overhead applicable rate Total overhead applicable rate Actual cost information: Cost of material purchased and consumed Quantity of material purchased and consumed Cost of direct labour Hours of direct labour Cost of variable overhead www.eduexpertus.com Rs. 5 kg. 100 kg per unit Rs. 20 per hour 2 hours per unit Rs. 12,000 per month 1200 units: Rs. 10 per unit Rs. 2 per unit Rs. 12 per unit Rs. 4,68,000 Rs. 1,04,000 kg Rs. 46,480 2240 Hrs. Rs. 2,352 21| Page Call: 8923987373, Email: support@eduexpertus.comUGC NTA NET Management December 2019: Solved Question Paper Cost of fixed overhead Rs. 12,850 Volume of production 1000 units Q91. What is the direct materials price variance, given an actual price of Rs 4.50 per kg? (A) Rs. 20.600 unfavourable (B) Rs. 52.600 favourable {C) Rs. 48.600 favourable (D) Rs. 52.000 unfavourable ANSWER. D EXPL. To compute the direct materials price variance, take thedifference between the standard price (SP) and the actual price (AP), and then multiply that result by the actual quantity (AQ): Direct materials price variance = (SP - AP) x AQ Direct materials price variance = (4-4.5) x 104000 = -Rs 52,000 Q.92. What is the labour efficiency variance? (A) Rs. 4,800 unfavourable (B) Rs. 4,200 favourable (©) Rs. 4,800 favourable (D) Rs. 1,200 unfavourable ANSWER.A EXPL, The labour efficiency variance measures the ability to utilize labour in accordance with expectations. The variance is useful for spotlighting those areas in the production process that are using more labour hours than anticipated. The formula for the labour efficiency variance is: Labour efficiency variance = (Actual hours - Standard hours) x Standard rate = (2240 - 21000) x 20 = 240 x 20 = 4800 As actual is greater than standard therefore labour efficiency variance is unfavourable. Q93. What is the overhead volume variance? (A) Rs. 4.600 favourable www.eduexpertus.com 22 | Page Call: 8923987373, Email: support@eduexpertus.comUGC NTA NET Management December 2019: Solved Question Paper (B) Rs. 2,200 unfavourable (C) Rs. 4,000 unfavourable (D) Rs. 2,000 unfavourable ANSWER. D EXPL. Fixed Overhead Volume Variance = Applied Fixed Overhead ~ Budgeted Fixed Overhead Applied Fixed overhead = Standard Fixed Overhead Rate x Actual volume of produiction Budgeted Fixed Overheads (Fixed overhead budget) ‘Budgeted Units (Normal level of production) Standard Fixed Overhead Rate = om = Rs 10 per unit Actual volume of production = 1000 units ‘Therefore, Applied Fixed overhead = 10 x 1000 = Rs 10000 Budgeted Fixed Overhead = Rs 12000 Fixed Overhead Volume Variance = Rs 10000 - Rs 12000= -R¢ 2000 Standard Fixed Overhead Rate = Q94. Obtain the overhead spending variance, (A) Rs, 29,202 unfavourable (B) Rs. 1,202 unfavourable (C) Rs. 1,200 favourable (D) Rs. 15,202 favourable ANSWER. B EXPL. Actual Overheads (Fixed + Variable) = 12580 + 2352 = Rs 15202 Standard overheads (Fixed Variable) = Rs 12000 + 1000*2 = Rs 14000 Overhead spending variance = Standard overheads ~ Actual overheads = Rs14000- Rs 15202 = Rs 1202 (Unfavourable 1202) Q95. What is the material quantity variance? (A) Rs. 26.000 favourable (B) Rs)20.000 unfavourable (C) Rs. 28,000 favourable (D) Rs. 29.000 unfavourable ANSWER.B EXPL. Material Quantity Variance = (SQ -AQ) * SP = (100*1000 - 104000)* 5 = -20,000 Where, SQ = Standard Quantity www-eduexpertus.com 23 | Page Call: 8923987373, Email: support@eduexpertus.comUGC NTA NET Management December 2019: Solved Question Paper AQ = Actual Quantity SP = Selling Price End Passage Start Passage Comprehension: Read the passage and attempt the questions that follow: Dinesh, a young executive, joined Softech Co. three months back. Coming. with™ brilliant academic record. The key role to revamp the company’s finance and management procedures for which he was recognized by the management. But now his performance has come down with mistakes found in mostof his actions. Several things transpired against him. His only son turned spastic and) he was overlooked for promotion against a new comer. This witnessed him becoming less popular among staff. Adding to that, a mild flirtation with a female employee was blown out of proportion. Dinesh has become emotionally and professionally depressed with morale down and seemed losing self-confidence badly. Q96. As HR Manager, which counselling mode would.you choose for Dinesh? {A) Developmental mode (B) Disciplinary mode (©) Open ended mode (D) Unbiased mode ANSWER.A EXPL. Developmental counselling. and therapy (DCT) is a counselling approach developed by Allen Ivey for understanding and helping people. It is based in theories of individual uniqueness,/human growth and development, family and environmental systems, wellness) multicultural awareness, counselling and therapy, and change. Here the most appropriate counselling mode appears to be Developmental mode. (When we are not awarélabout the exact definition of the option, merely be going through the option and applying common sense would lead to right result). Q97. As HR Manager which life positions in Transactional Analysis would youexpects Dinesh to have? (A) 'm Ok. You are Ok (B) I'm Ok. You are Ok (C) P'm not Ok, You are not Ok (D) I'm not Ok. You are Ok ANSWER. A www.eduexpertus.com 24 | Page Call: 8923987373, Email: support@eduexpertus.comUGC NTA NET Management December 2019: Solved Question Paper When people interact in organisations, there is a social transaction in which one person responds to another. ERIC BERNE is usually credited with starting the transactional movement for psychotherapy in the 1950s In the words of Eric Berne, “The unit of social intercourse is called a transaction. If two or more people encounter each other in a social aggregation, sooner or later one of them will speak or give some other indication of acknowledging the presence of the other. This is called the transactional stimulus. Another person will then say or do something:which is in some way related to this stimulus and that is called the transactional response,” Life Positions ‘There are four life positions described by TA - these are: ’'m OK—You’re OK I’m OK—You’re not OK I'm not OK—You’re OK I'm not OK—You’re not OK I'm OK—You're OK position is considered the optimal, healthy position and is generally game-free. People occupying this position will hold the belief that all people are innately worthy and valuable. That people are OKjis a’Statement which describes their being or essence rather than their behaviour This position is characterized by an attitude openness and of honesty and trust. People occupying this position will be collaborative and accepting of themselves and others. As HR manager I would like Dinesh to be in this position. I’m OK—You’re not OK is occupied by those who project their difficulties onto others, they may be blaming and critical, ‘Transactional games that reinforce this position involve a self-styled superior (the “’m OK’) who projects anger, disgust, or disdain onto a designated inferior, or scapegoat (the “You're not OK"). This position requires that there be someone to be worse than’ in order to maintain the sense of self as ok. The I'm not OK—You're OK position is depressive, it is characterized by feeling powerless and lacking in comparison with others. People occupying this position may discount their own needs in favour of others and may experience themselves as victims. ‘Transactional games supporting this position include ‘Kick me” and “Martyr’—games that support the power of others and deny one’s own. Pm not OK—You're not OK is a position of hopelessness, futility and frustration. Fromthis position life seems uninteresting and hopeless. This may result in self- destructive or violent behaviour. Q98)Which type of promotion policy would you recommend to Softech Ci (i) Career ladder (ii) Merit Based (iii) Accretion of duties (iv) Competitive and non-competitive Choose the correct option from the following www.eduexpertus.com 25 | Page Call: 8923987373, Email: supporti@eduexpertus.comUGC NTA NET Management December 2019: Solved Question Paper (A) (i) and (ii) (B) (ii) and (ii) (C) (iii) and (iv) (D) (i) and (iii) ANSWER. B EXPL. Any organization follows following promotion policy: Organizations develop a policy depending on the basis on which promotions are to be made. Every organization need to specify clearly its promotion policy based 6n its corporate policy. The policy should contain clear cut norms and criteria for promoting an employee. The policy should be fair and impartial and should be applied uniformly to all employees without giving scope for nepotism, favouritism etc. 1. Merit: Denotes an individual employee's skill, knowledge, ability, efficiency and aptitude as measured from educational, training and past émployment record. It helps employees to acquire new skill, knowledge. However, lack of reliability in determining merit criteria objectively is the main obstacle to its becoming the sole basis for promotion. 2. Seniority: Seniority is based on the length of service of an employee in an organization.4 It is relatively easy to measure the-length of service and judge the seniority. It minimizes the scope for grievances and Conflicts regarding promotion. At the same time, it results in employee turnover and it kills the zeal and interest to develop among young people. 3. Seniority-cum-Merit: Theré)ig a) need to strike a balance between merit and seniority. Hence a combination of both seniority and merit can be considered the basis for promotion satisfying the management for organizational effectiveness and employees and trade unions for respecting the length of service. Q.99. The HR Manager should impart which of the following skills to Dinesh? (A) Technical skills (B) Peoples skills {C) Communication skills (D) Negotiating skills ANSWER. B EXPL.) No one can doubt the technical skills, communication skills and negotiating skills of the Dinesh as he has a brilliant academic record and has played key role in revamping the company’s finance and management procedures. People skills also are known as soft skills, interpersonal skills, social skills, emotional intelligence and interpersonal Intelligence. As we can see from the passage that Dinesh is somehow lacking in his social skills as he is exactly not aware www.eduexpertus.com 26 | Page Call: 8923987373, Email: support@eduexpertus.comUGC NTA NET Management December 2019: Solved Question Paper of his behaviour in the organisation (as he was involved in a mild flirtation with a female employee). Therefore, He might be lacking in people's skills. Q100. Which management approach should the HR Manager deploy for Dinesh here? (K) (A) HR Approach (B) Contingency Approach (C) Systems Approach (D) Interactionalism Approach ANSWER.D EXPL. Some of the approaches to management are: - 1, Human Resource Approach: Human resource approachis concerned with growth and development of peoples towards higher level of competency, creativity and fulfilment. It is also known as supportive approach. Thé"Manager’s role changes from control of employees to active support of their growth and/performance. 2. Productivity Approach: Productivity is numerical value/of the ratio of output to input of an organization's effectiveness. It also reveals managers efficiency in optimizing resource utilization. 3.Interactionism Approach: This approach focusés’on social interaction in specific situations. It attempts to explainhow’ people select)interpret & change in various situation. Interactionism is micro-sociological and believes that meaning is produced through the interactions of individuals. This approach would be most suitable for Dinesh as through interaction with Dinesh HR manager would be in better position to understand what is the cause of real cause of the trouble faced by Dinesh. 4. Contingency Approach: This approach is based on the principle that methods or work which work effectively in one situation may completely fail in another situation. Results differ because situation differ. Hence manager's task is to identify which method will in particular time best contribute to the attainment of organization’s goal. 5. System’ Approach? This approach views the organization as a united purposeful system composed of interrelated parts. It compels the manager to take a holistic view of the subject that interprets of the whole person whole organization & whole system. End Passage www.eduexpertus.com 27 | Page Call: 8923987373, Email: support@eduexpertus.com