Handbook of Multiple Choice Questions For MBA, Volume 1

Handbook of
Multiple Choice Questions

for MBA
VOLUME-I
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CONTENTS
1 Principles & Practices of Management 1

2 Managerial Economics 53
3 Accounting & Financial Analysis 79
4 Organisational Behaviour 109
5 Business Statistics 129
6 Marketing Management 163
7 Computer Applications 181
8 Business Communication 219
Case Studies
1. Principles of Management 237

2. Organisational Behaviour 244
3. Marketing Management 257
"This page is Intentionally Left Blank"
Chapter 1
Principles & Practices of
Management
(Unit-I)
Q.l: Which one of the following approaches is adopted in
studying management?
(a) Profession
(b) Art
(c) Science
(d) Process
Q.2: Which one of the following statements is true?
(a) Management is above administration
(b) Administration is above management
(c) Management and administration are same
(d) Management and administration are two different
disciplines
Q.3: Management is Science & .......... .
(a) Pure science
(b) Applied science
(c) Art
(d) Artificial science
Q.4: Management as a profession does fall in ............. .
(a) Established profession
(b) Marginal profession
(c) Semi profession
(d) Emerging profession
Q.5: A management theory fails because ...
(a) It lacks universal applicability
(b) Management is an art
(c) Management is Science
1
Handbook of Multiple Choice Questions for MBA
(d) People are illiterate

Q.6: Which is the most descriptive characteristics ofa manager?
(a) Decisive
(b) Amiable
(c) Agreeable
(d) Kindly
Q.7: What is the nature of management process?
(a) Time-bound
(b) Continuous
(c) Disjointed
(d) Procedural
Q.8: Top management functions takes care of
(a) Overall organisation
(b) Specific problems
(c) Routine problems
(d) General problems
Q.9: Which role does not constitute management roles as
proposed by Henry Mintzberg?
(a) Interpersonal role
(b) Informational role
(c) Decisional role
(d) Training role
Q.I0: A supervisor's job is difficult because ...
(a) He is link between management and operatives
(b) He has to handle technical problems
(c) He has to deal with only uneducated workers
(d) He is not well recognized in the organisation
Q.ll: Which combinations of skills set is required for top
management in ascending order?
(a) Technical, human, conceptual
(b) Conceptual, human, technical
(c) Technical, conceptual, human
(d) Human, conceptual, technical
Q.12: The scientific management theory was given by ....
(a) Frederick Taylor
(b) Henry Fayol
2
Principles & Practices of Management
(c) Elton Mayo

(d) Peter Drucker
Q.13: Bureaucracy is considered most efficient system because ....
(a) It insists on rules
(b) It prescribes informal relationships
(c) It emphasises on human elements
(d) It provides more freedom
Q.14: Which approach has emerged from the findings of
Hawthorne Experiments?
(a) Human behaviour approach
(b) Systems approach
(c) Human relations approach
(d) Decision theory approach
Q.15: One of the major contributions of Herbert A Simon is in
the area of
(a) Decision making
(b) Interpersonal behaviour
(c) Managerial hierarchy
(d) Contingency approach
Q.16: Management as a system emphasises on......
(a) Close system perspective
(b) Open system perspective
(c) Social system
(d) None of these
Q.17: Which terms is not associated with social responsibility?
(a) Social commitment
(b) Social concern
(c) Social programme
(d) Social structure
Q.18: Organisations should feel concerned with social
responsibility because they ..........
(a) are the part of society
(b) can make huge profit
(c) can be more efficient
(d) can compete in better way
3
Q.19: Which one of the following is not directly concerned with

making Social Responsibility operational in an organisation?
(a) Commitment of top management
(b) Formulating 5 R policy
(c) Institutionalisation of 5 R
(d) Changing organisation structure
Q.20: Which statement is not true?
(a) Human values are the core of ethical behaviour
(b) Values are learned and inculcated
(c) Values are formed by interaction with various social
groups
(d) Values are not relevant in performing management
functions
Q.21: Corporate governance does not include ........ .
(a) Constitutional of board of directors
(b) Disclosure of information
(c) Management practices
(d) Technological changes in the organisation
(Unit-l)
Ans.l: Profession
Ans.2: Administration is above management
Ans.3: Art
Ans.4: Emerging profession
Ans.5: It lacks universal applicability
Ans.6: Decisive
Ans.7: Continuous
Ans.8: Overall organisation
Ans.9: Training role
Ans.l0: He is link between management and operatives
Ans.ll: Technical, human, conceptual
Ans.12: Frederick Taylor
Ans.13: It insists on rules
Ans.14: Human relations approach
Ans.15: Decision making
4
Principles & Practices 0/ Management
Ans.16: Open system perspective

Ans.17: Social structure
Ans.18: are the part of society
Ans.19: Changing organisation structure
Ans.20: Human values are the core of ethical behaviour
Ans.21: Technological changes in the organisation
. 5

(Unit-2)
Q.l: A technique that encourages group members to generate
as many novel ideas as possible on a given topic ........... .
(a) Brain storming
(b) Delphi technique
(c) Synetics
(d) Nominal technique
Q.2: It is a graphic decision making tool typically used to evaluate
decisions, containing a series of steps ............... .
(a) Decision tree
(b) Decision step
(c) Decision set
(d) None
Q.3: The formal and legitimate right of a manager to make
decisions, issue orders and allocate resources to achieve
goals is ......... .
(a) Authority
(b) Power
(c) Delegation
(d) None
Q.4: The process by which a manager assigns a portion of his
total work load to others is ............... .
(a) Delegation
(b) Directing
(c) Distribution
(d) All of the above
Q.5: A graphic representation of organisational structure is .......... .
(a) Organisational chart
(b) Organisational Development
(c) Organisational change
(d) Organisational culture
Q.6: The line of authority in an organisation that runs in order
6
of rank from top is .......... .

(a) Hierarchy
(b) Circular
(c) Vertical charts
(d) Horizontal charts
Q.7: The breakdown of a complex task into components so that
individuals are responsible for a limited set of activities
instead of the task, as a whole .............. .
(a) Division of work
(b) Doubling of work
(c) Responsibility decreasing
Q.8: The process of grouping related work activities into
manageable units is .................... .
(a) Departmentation
(b) Centralisation
(c) Direction giving
(d) Division of units
Q.9: The process of dividing large organisation into smaller,
flexible administrative units .............. .
(a) Departmentation
(b) Differentiation
(c) Functional division
(d) None
Q.I0: The degree of differences among the units of an
organisation is known as
(a) Departmentation
(b) Differentiation
(c) Both (a) & (b)
(d) None
Q.ll: Positions in an organisation concerned with its major
workflow are known as
(a) Line functions
(b) Staff functions
(c) Functional structure
7
(d) Divisional structure

Q.12: Grouping positions into units according to the similarity
of products or markets ................. .
(a) Divisional structure
(b) Functional structure
(c) Staffing
(d) None
Q.13: The process of achieving unity of effort among various
subsystems in the accomplishment of an organisation's
task. ..... .
(a) Integration
(b) Integrity
(c) Territory division
(d) None
Q.14: A management structure characterised by an overall
narrow span of management and a relatively large number
of heirarchiallevels ................... .
(a) Tall structure
(b) Flat structure
(c) Both (a) & (b)
(d) None
Q.15: A management structure characterized by an overall broad
span of control and relatively few hierarchial levels
is .............. .
(a) Tall structure
(b) Flat structure
(c) Narrow structure
Q.16: Autonoous groups of employees who are collectively
responsible for their output... ......... .
(a) Work teams
(b) Profit centre
(c) Virtual teams
(d) None
Q.17: Empowerment... ............... .
8
(a) Delegation of power to subordinates

(b) Delegation of authority to subordinates
(c) Both (a) & (b)
(d) None
Q.18: A process through which specific goals are set
collaboratively for the organisation as a whole and every
unit and individual within it is called as .................. .
(a) MBO
(b) HRP
(c) HRIS
(d) MDP
Q.19: Strategic planning aims at ............... .
(a) Achieving competitive advantage
(b) Focusing on old products
(c) Setting new brand capacity
(d) None
Q.20: This planning defines the broad directins in which the
organisation wants to grow in future is ............. .
(a) Long range planning
(b) Short range
(c) Standing planning
(d) Single use
Q.21: It is a statement of the reason for being in business .......... .
(a) Vision
(b) Mission
(c) Objective
(d) Value
Q.22: The conditions and forces within an organisation is .............. .
(a) Internal enviornment
(b) External environment
(c) Both
(d) None
Q.23: The general environment that affects all business
firms ......... .
(a) Macro environment
(b) Micro environment
9
(c) Both
(d) None
Q.24: An analysis intended to match the firm's strengths and
weaknesses with the opportunities and threats posed by
the environment.. .................. .
(a) SWOT analysis
(b) BCG Mtrix
(c) STOW
(d) None
Q.25: The set of values that helps an organisation's members
understand what it stands for, how it does things is .............. .
(a) Culture
(b) Climate
(c) Cofactor
(d) None
Q.26: The experience knowledge, capabilities, skills and
judgement of the employees ....................... .
(a) Human Resources
(b) Human Relation
(c) Human Behaviour
(d) Human Tendency
Q.27: The gathering and analysis of information about relevant
environment trends is ............... .
(a) Environmental study
(b) Environmental skipping
(c) Environmental scanning
(d) None
Q.28: A choice from available alternative is ................. .
(a) Decision
(b) Choice
(c) Pervasiveness
(d) None
Q.29: It is the process by which individuals select a course of
action among several alternatives to produce a desired
result....... .
10
(a) Decision making

(b) Decisions
(c) Alternative
(d) None
Q.30: A decision that is fairly structured or recurs with some
frequency is ..................... .
(a) Problem solving
(b) Programmed decision
(c) Non-programmed decision
(d) None
Q.31: A decision made in response to a situation that is unique,
poorly defined and largely unstructured is ............... .
(a) Programmed decision
(b) Non-programmed decisions
(c) Subprogrammed decision
(d) None
Q.32: It refers to a broad set of activities that involves findings
and implementing a course of action to correct an
unsatisfactory situation ................ .
(a) Problem creating
(b) Problem solving
(c) Problem
(d) Problem solution
Q.33: The future outcomes associated with each alternative is
subject to ............ .
(a) Risk
(b) Harm
(c) Danger
(d) None
Q.34: The formal procedure for obtaining the consensus of a
number of experts through the use of series of
questionnaires ....... .
(a) Dephi technique
(b) Brain storming
(c) Brain technique
11
(d) Nominal group technique

Q.35: A type of work activity that can be identified and
distinguished from other work is ......... .
(a) Administration
(b) Division
(c) Function
(d) Policy
Q.36: Two or more persons engaged in a systematic effort to
produce goods or services .................. .
(a) Organisation
(b) Managers
(c) College
(d) None
Q.37: It is the process of deciding in advance what is to be done,
when and where it is to be done, how it is to be done and by
whom .............. .
(a) Planning
(b) Organising
(c) Staffing
(d) Coordination
Q.38: It is the process of creating a structure of relationships to
enable employee to carry out management's plan and meet
its goals ....
(a) Organising
(b) Planning
(c) Staffing
(d) None
Q.39: It deals with the steps a manager to get subordinates and
others to carry out plans ....
(a) Directing
(b) Planning
(c) Organising
(d) Staffing
Q.40: Influencing others to act toward the attainment of a goal
is ........
12
(a) Leadership
(b) Motivation
(c) (a) & (b) both
(d) None
Q.41: Any influence that brings out, directs or maintains goal
directed behaviour .......
(a) Motivation
(b) Reinforce
(c) Leading
(d) None
Q.42: The management function concerned with monitoring
employees' activities, keeping the organization on track
towards its goal and making corrections as required is ......... .
(a) Controlling
(b) Leading
(c) Planning
(d) None
Q.43: It tries to solve problems by diagnosing them within a
framework of inputs, transformation processes, outputs and
feedback is .....
(a) System Approach
(b) Hawhorne Studies
(c) Human Relations Approach
(d) None
Q.44: It argues that appropriate managetial action depends on
the particular parameters of the situations is .....
(a) Contingency Theory
(b) Hawthorne
(c) Behaviouristic Theory
(d) Human Relations
Q.45: The voluntary effort of individuals to work together and
to help each other is ............ ..
(a) Cooperation
(b) Consciencetouness
(c) Coorelation
13
(d) Both (a) & (b)

Q.46: The process of identifying problems and opportunities and
then resolving them .....
(a) Decision making
(b) Delegation
(c) Deliberating
(d) None
Q.47: The managed effort of an organization to develop new
products or services or new uses for exsting products or
services .......
(a) Innovation
(b) Morale
(c) Planning
(d) Futuristic
Q.48: An organisation in which everyone is identifying and
solving problems, enabling the organisation to continuously
experiment, improve and increae its capability is ............ .
(a) Learning organisation
(b) OP
(c) Organisation Change
(d) None
Q.49: A written record to what the organisatin intends to do,
within a time frame ..........
(a) Formal Plan
(b) Informal Plan
(c) Single Use Plan
(d) Standing Plan
Q.50: The organisation merely reacts to events as and when they
arise ........
(a) Proactive
(b) Reactive
(c) Corporate Plan
(d) Contingency Plan
Q.51: It is a planning tool used to predict future enviornmental
happening that will influence the operations of an
14
organisation ....
(a) Forecasting
(b) Objective
(c) Mission
(d) Rules
Q.52: Premises are ........... .
(a) Assumptions about present
(b) Assumptions about future
(c) Assumptions about past
Q.53: End point of a management programme ............ ..
(a) Goal
(b) Vision
(c) Value
(d) Objective
Q.54: A widely descriptive image of what a company wants to
be or wants to be known for .......... .
(a) Vision
(b) Value
(c) Goal
(d) Objective
Q.55: Pervasiveness of planning indicates that... ...
(a) Planning extends throughout the organisation
(b) Planning is a top management function
(c) Planning is the first element of management process
(d) Planning is future-oriented activity
Q.56: One major element of planning process is .........
(a) developing leadership qualities
(b) selecting right personnel
(c) perception of opportunities
(d) designing organisation structure
Q.57: Strategic planning focuses on ............ ..
(a) future course of action
(b) long-term perspective
(c) short-term perspective
15
(d) single-use plans

Q.58: Tactical planning is also known as ............ .
(a) strategic planning
(b) operational planning
(c) reactive planning
(d) proactive planning
Q.59: Which element is not a barrier to effective planning?
(a) Rapid environmental changes
(b) Inadequate appreciation of planning
(c) Organisational inflexibility
(d) Social Responsibility
Q.60: Feature of a good plan ............ .
(a) Consistency
(b) Highly ambitious targets
(c) Formulated by all persons
(d) Rigid targets
Q.61: Which is not a programmed decision?
(a) Promotion decision
(b) demotion decision
(c) Launching a new product
(d) Setting sales quota
Q.62: Which is not relevant for problem identification in decision
making?
(a) Research and analysis
(b) Diagnosis
(c) Gap analysis
(d) Experimentation
Q.63: Important in effective decision making is ....... .
(a) Application of limiting factor
(b) Hard decision
(c) Pleasing decision
(d) Implied decision
Q.64: Which is a quantitative technique of decision making?
(a) Brainstorming
(b) Decision tree
16
(c) Delphi teclmique

(d) Consensus mapping
Q.65: The concept of bounded rationality associated with ...... .
(a) Administrative man
(b) Economic man
(c) Social man
(d) Organisation man
Q.66: Which technique is used for improving group decision
making?
(a) Brainstorming
(b) Decision tree
(c) Game theory
(d) Queuing theory
Q.67: The term organisation is used except the following way ......
(a) as entity
(b) as process
(c) as group of people
(d) as production process
Q.68: Organising process does not involve one of the following
elements:
(a) Appraisal of a subordinate
(b) Delegation of authority
(c) Fixing responsibility
(d) Departmentation
Q.69: Classical organisation theory treats a business organisation
as a .....
(a) closed system
(b) open system
(c) suprasystem
(d) teclmical system
Q.70: Neoclassical organisation theory emphasises on one of the
following features of an organisational design.
(a) Flat structure
(b) Tall structure
(c) Unity of command
17
Handbook of Multiple Choice Questions fOT MBA
(d) Narrow span of management

Q.71: Which factor is not important in organisational design?
(a) Environment
(b) Strategy
(c) Informal relationships
(d) Technology
Q.72: Formal organisation differ from informal organisation in
respect to ...... .
(a) Structuring
(b) Production process
(c) Financial procedure
(d) Marketing procedure
Q.73: Which is not an organisational design approach?
(a) Result approach
(b) Process approach
(c) Authentic approach
(d) Decision approach
Q.74: Which departmentation is based on functions ...... .
(a) Marketing
(b) North territory
(c) Department named A
(d) Department named Z
Q.75: Narrow span of management results
(a) Flat structure
(b) Tall structure
(c) Inorganic structure
(d) Organic structure
Q.76: Which factor does not influence span of management?
(a) Technology
(b) Nature of subordinates
(c) Communication
(d) Conflict
Q.77: Line organisation structure is not known as ........... .
(a) Scaler
(b) Military
18
(c) Vertical
(d) Virtual
Q.78: Strategic business units are created in .....
(a) Divisional structure
(b) Functional structure
(c) Project structure
(d) Matrix structure
Q.79: Matrix structure is created in combination with......... .
(a) Functional and divisional
(b) Functional and project
(c) Functional and line
(d) Divisional and line
Q.80: Self-directed team is also known as ........ .
(a) empowered team
(b) problem-solving team
(c) cross functional team
(d) virtual team
Q.8I: One of the main reason of committees is that they result
into
(a) fast decision
(b) slow decision
(c) participative decision
(d) meaningless decision
Q.82: Which of the following is not a basic feature of virtual
oganisation?
(a) Technology
(b) Opportunism
(c) Excellence
(d) Border

(Unit-2)
Ans.I: Brain storming
Ans.2: Decision tree
Ans.3: Authority
Ans.4: Delegation
19
Ans.5: Organisational chart

Ans.6: Hierarchy
Ans.7: Division of work
Ans.8: Deparhnentation
Ans.9: Deparhnentation
Ans.l0: Differentiation
Ans.ll: Line functions
Ans.12: Divisional structure
Ans.13: Integration
Ans.14: Tall structure
Ans.15: Flat structure
Ans.16: Work teams
Ans.17: Both (a) & (b)
Ans.18: MBO
Ans.19: Achieving competitive advantage
Ans.20: Long range planning
Ans.21: Mission
Ans.22: Internal environment
Ans.23: Macro environment
Ans.24: SWOT analysis
Ans.25: Culture
Ans.26: Human Resources
Ans.27: Environmental scanning
Ans.28: Decision
Ans.30: Programmed decision
Ans.31: Non-programmed decision
Ans.32: Problem solving
Ans.33: Risk
Ans.34: Dephi technique
Ans.35: Function
Ans.36: Organisation
Ans.37: Planning
Ans.38: Organising
Ans.39: Directing
Ans.40: Leadership
Ans.41: Motivation
20
Ans.42: Controlling
Ans.43: System Approach
Ans.44: Contingency Theory
Ans.45: Cooperation
Ans.47: Innovation
Ans.48: Learning organisation
Ans.49: Formal Plan
Ans.50: Reactive
Ans.5l: Forecasting
Ans.52: Assumptions about future
Ans.53: Objective
Ans.54: Vision
Ans.55: Planning extends throughout the organisation
Ans.56: Perception of opportunities
Ans.57: Long-term perspective
Ans.58: Reactive planning
Ans.59: Social Responsibility
Ans.60: Consistency
Ans.61: Launching a new product
Ans.62: Experimentation
Ans.63: Application of limiting factor
Ans.64: Decision tree
Ans.65: Administrative man
Ans.66: Brainstroming
Ans.67: As production process
Ans.68: Appraisal of a subordinate
Ans.69: Closed system
Ans.70: Flat structure
Ans.71: Informal relationships
Ans.72: Structuring
Ans.73: Authentic approach
Ans.74: ,Marketing
Ans.75: Tall structure
Ans.76: Technology
Ans.77: Virtual
21
Ans.79: Functional and project

Ans.80: Empowered team
Ans.81: Participative decision
Ans.82: Border
22

(Unit-3)
Q.l: Staffing function is performed by .......... ..
(a) Only top management
(b) Only middle managers
(c) Only personnel managers
(d) Every manager
Q.2: Human resource planning is also known as .......
(a) organisational planning
(b) manpower planning
(c) job planning
(d) manpower inventory
planning
Q.3: Which information is not included in skills inventory?
(a) Employee's personal data
(b) Salary and job history
(c) Employee's potentials
(d) Organisation's training schedule
Q.4: Which element is not a part of job analYSis?
(a) Defining uses of job analysis
(b) Information collection for job analysis
(c) Information processing for job analysis
(d) Determining relative worth of the job
Q.5: A job description does not provides information about.. ......
(a) Job title
(b) Job contents
(c) Job responsibilities
(d) Job enrichment
Q.6: Communicatin between two or more people is known as
(a) Interpersonal
(b) Extrapersonal
(c) Intrapersonal
(d) Organisational
Q.7: The process by which managers ensure that they have the
23
right number and kinds of people in the right places, and at

the right time .......................... .
(a) HRP
(b) HRM
(c) HRD
(d) HRIS
Q.8: ............................... .function is related to employment of
personnel of all types - managerial as well as operative in
the organization.
(a) Planning
(b) Organizing
(c) Staffing
(d) Appraisal
Q.9: In staffing function, which one of the following group of
managers are involved
(a) Top Management
(b) Middle Management
(c) Personnel Managers
(d) All Managers
Q.I0: Manpower planning is also known as
(a) Human Resource Planning
(b) Organisational Planning
(c) Job Planning
(d) Manpower Inventory
Planning
Q.ll: Total human resources are classified as managerial and
non-managerial, skills inventory, these information is
maintained by
(a) HRIS
(b) Inventory Management
(c) Manpower Doing
(d) None
Q.12: Which one of these is not part of management inventory
(a) Personal Data
(b) Promotion Potentials
24
(c) Total Budgets managed

(d) Salary and job history
Q.13: Which gap is the difference between manpower required
at a particular time and the personnel being available at
that particular time
(a) Manpower Gap
(b) Demand Gap
(c) Supply Gap
Q.14: Determination of the tasks which comprise the job and the
skills, abilities and responsibilities required of the worker
is called ...... .
(a) Job Analysis
(b) Job Description
(c) Job Evaluation
(d) Job Relation
Q.15: A written statement showing job title, tasks, duties and
responsibilities involved in a job is ............... .
(a) Job Description
(b) Job Specification
(c) Job Analysis
(d) Job Evaluation
Q.16: ............................. .is a statement of the minimum acceptable
human qualities necessary to perform a job properly.
(a) Job Description
(b) Job Specification
(c) Both (a) & (b)
(d) None
Q.17: Which of these are not a part of job specification............. .
(a) Age, Sex
(b) Height, Weight
(c) Job Title, Job Code
(d) Emotional Stability
Q.18: Which combination of activities in sequential order is
correct. ....... .
25
Handbook 0/ Multiple Choice Questions for MBA
(a) Recruitment, Selection, Job Analysis, Induction

(b) Induction, Orientation, Job Analysis, Selection
(c) Placement, Selection, Job Analysis, Recruitment
(d) Job Analysis, Recruitment, Selection, Induction.
Q.19: Recruitment is a process of
(a) Searching prospective employee
(b) Stimulating and encouraging them
(c) Apply for job in an organization
(d) All of the above.
Q.20: The ultimate objectives of both recruitment and selection
are to-
(a) acquire suitable suppliers
(b) reject employees
(c) Retrenchment of employees
(d) acquire suitable candidates
Q.21: Which one of the following is not an importance of
direction?
(a) Direction initiatives action
(b) Direction integrate employee efforts
(c) Direction attempts to get maximum
(d) Direction provides instability
Q.22: Which principle is related to purpose of directing?
(a) Unity of command
(b) Managerial communication
(c) Maximum individual contribution
(d) Principle of leadership
Q.23: Which factor is not an important consideration in order
giving?
(a) General or specific
(b) Written or oral
(c) Formal and informal
(d) Wide or narrow
Q.24: Which one of the following is not a behavioural model
according to Kieth Davis?
(a) Autocratic
26
(b) Custodial
(c) Supportive
(d) Ancient
Q.25: Which one of the following is not alternative model of
management?
(a) Traditonal Model
(b) Human Relations Model
(c) Human Resource Model
(d) Collegial Model
Q.26: Vroom has presented an alternative theory which is based
on ....... ..
(a) Maslow's need hierarchy
(b) Vroom's expectancy theory
(c) Motivation-hygiene
(d) Equity theory
Q.27: According to Maslow's need hierarchy theory, five needs
sequentially are
(a) Physiological, security, social, esteem, self actualisation
(b) Safety, social, esteem, physiological, self actualisation
(c) Self actualisation, safety, esteem, social, physiological
(d) Physiological, safety, esteem, social, self actualisation
Q.28: Which one of the following is a motivating factor according
to Herzberg's motivation hyegine theory?
(a) Job security
(b) Company policy
(c) Work itself
(d) Interpersonal relations
Q.29: Achievement need can be developed has been proposed
by .....
(a) A.H. Maslow
(b) Clayton Alderfer
(c) David McClelland
(d) Frederick Herzberg
Q.30: Vroom's theory is based on ............ .
(a) Instrumentality
(b) Motivation process
27
(c) Parity
(d) Carrot and stick
Q.31: According to Porter and Lawler motivation model which
one of the following element is not associated?
(a) Effort
(b) Performance
(c) Reward
(d) Equity
Q.32: Carrot and stick approach of motivation associated with.....
(a) Reward-punishment
(b) Equity-inequity
(c) Equility-inequility
(d) Motivation-hygiene
Q.33: Which one of the following management function has not
been emphasised by MeGrergor's theories X and Y?
(a) Planning
(b) Organising
(c) Directing
(d) Appraising
Q.34: Which is a financial incentive?
(a) Stock option
(b) Promotion
(c) Status
(d) Participation
Q.35: In co-partnership as an instrument of financial incentives
involves ............. .
(a) allotting shares to employees
(b) distributing a part of profit to employees
(c) providing retirement benefits to employees
(d) enriching the job of employees
Q.36: Which is used for motivation?
(a) Job simplification
(b) Job rotation
(c) Job enlargement
(d) Job enrichment
28
Principles & Practices 0/ Management
Q.37: Which is not an element of empowerment?

(a) Delegatin of authority
(b) Goal setting
(c) Self management
(d) Control mechanism
Q.38: Which factor is used for improving quality of work life?
(a) Flexible work schedule
(b) Tall organisation structure
(c) Tight work schedule
(d) Financial incentives
Q.39: Which variable does not affect job satisfaction?
(a) Working conditions
(b) Su pervision
(c) Work group
(d) Retirement benefits
Q.40: Which is not an indicator of status of morale?
(a) Employee absenteeism
(b) Employee turnover
(c) Job satisfaction
(d) Promotion
Q.41: Which are not causes of resistence to control.
(a) Curb on freedom
(b) Curb on creativity & innovation
(c) Rigid control standards
(d) Curb on undesirable
behaviour
Q.42: Earning per share indicate?
(a) Profitability on total investment
(b) Profitability on equity capital
(c) Profitability on fixed assets
(d) Profitability on current assets
Q.43: Management audit is an evaluation of .............. .
(a) Qualities of managers
(b) Management as a whole
(c) Valuation of managers
29
(d) Valuation of physical

assets
Q.44: An organisation social performance is measured by ...... .
(a) social responsibility
(b) social concern
(c) social audit
(d) social system
Q.45: Human resource accounting is associated with which
aspect of the organisation ...
(a) Valuation of human assets
(b) Valuation of goodwill
(c) Valuation of equity shares
(d) Valuation of management practices
Q.46: Which one of the following is not a method for measuring
human assets?
(a) Standard cost
(b) Historical cost
(c) Replacement cost
(d) Fixed cost
Q.47: A statement of minimum acceptable qualities required in
a job incumbent for the effective performance of the job is
called ........... .
(a) Job analysis
(b) Job description
(c) Job specification
(d) None of the above
Q.48: The difference between manpower required at a particular
time and the personnel being available at that particular
time is known as ......... .
(a) Resource Gap
(b) Manpower Gap
(c) Manpower Inventory
Q.49: Assessment of actual job performance by an employee in
the light of what is expected of him, is known as .......... .
30
(a) Performance appraisal

(b) Power planning
(c) Manpower planning
(d) both (a) & (b)
Q.50: Staffing requires .................................. approach
(a) Open system
(b) Close system
(c) Sometime open sometime
close
Q.51: Legal provision related to staffing are ............................... that
affect staffing process.
(a) Internal factors
(b) External factors
(c) Both (a) & (b)
Q.52: The process of differentiating between applicants in order
to identify (and hire) those with a greater likelihood of
success in a job, is known as ........ .
(a) Recruitment
(b) Selection
(c) Deputation
(d) Induction
Q.53: .................................. .is used for measuring human
performance characteristics related to the possible
development of proficiency on specific jobs.
(a) Aptitude
(b) Intelligence test
(c) Achievement test
(d) Personality test
Q.54: A technique by which a new employee is rehabili ta ted into
the changed surroundings, and introduction of employee
to the organisation is called ...
(a) Placement
(b) Induction
31
(c) Deputation
(d) None of the above.
Q.55: The process concerned with imparting and developing
specific skills for a particular purpose is terme as ...... .
(a) Training
(b) Development
(c) Demonstration
Q.56: liTo lern by doing itself" is the basic theme of...
(a) On the job training
(b) Job instruction training
(c) Apprenticeship
(d) Vertibule training
Q.57: The movement of a manager from one job to another job
on a planned basis is known as ...
(a) Simulation training
(b) Job rotation
(c) Role playing
(d) Apprenticeship
Q.58: Organisation development is a .......................... programme.
(a) Long range
(b) Shortrange
(c) Medium range

(Unit-3)
Ans.l: Every manager
Ans.2: Manpower planning
Ans.3: Organisation's training schedule
Ans.4: Determining relative worth of the job
Ans.5: Job enrichment
Ans.6: Interpersonal
Ans.7: HRP
Ans.8: Staffing
Ans.9: All Managers
32
Ans.I0: Human Resource Planning

Ans.ll: HRIS
Ans.12: Salary and job history
Ans.13: Manpower Gap
Ans.14: Job Analysis
Ans.15: Job Description
Ans.16: Job Specification
Ans.17: Job Title, Job Code
Ans.18: Job Analysis, Recruitment, Selection, Induction
Ans.19: All of the above
Ans.20: Acquiring suitable candidates
Ans.2I: Direction provides instability
Ans.22: Maximum individual contribution
Ans.23: Wide or narrow
Ans.24: Ancient
Ans.25: Collegial Model
Ans.26: Vroom's expectancy theory
Ans.27: Physiological, security social, esteem, self actualisation
Ans.28: Work itself
Ans.29: David McClelland
Ans.30: Motivation process
Ans.3I: Equity
Ans.32: Reward - punishment
Ans.33: Organising
Ans.34: Stock option
Ans.35: Allotting shares to employees
Ans.36: Job enrichment
Ans.37: Control mechanism
Ans.38: Flexible work schedule
Ans.39: Retirement benefits
Ans.40: Employee turnover
Ans.4I: Curb on undesirable behaviour
Ans.42: Profitability on equity capital
Ans.43: Management as a whole
Ans.44: Social audit
Ans.45: Valuation of human assets
Ans.46: Fixed cost
33
Ans.47: Job specification

Ans.48: Manpower Gap
Ans.4~: Performance appraisal
Ans.50: Opening system
Ans.51: External factors
Ans.52: Selection
Ans.53: Aptitude
Ans.54: Induction
Ans.55: Training
Ans.56: On the job training
Ans.57: Job rotation
Ans.58: Long range
34

(Unit-4)
Q.l: Key aspects of management process means
(a) Balancing effectiveness & efficiency
(b) Insensitive to organisational objectives
(c) Being cold and arrogant
(d) Both
(b) & (c)
Q.2: It involves imparting the necessary knowledge and skills
required for the performance of a particular job
(a) Selection
(b) Training
(c) Motivation
(d) Staffing
Q.3: Managers who are responsible for the overall direction and
operations of an organisation
(a) Top Managers
(b) Middle Managers
(c) Lower level
(d) Supervisor
Q.4: Grouping positions into units according to the similarity of
products or markets is
(a) Structure
(b) Departmentation
(c) Divisional structure
(d) Section
Q.5: The process of achieving unity of effort among various
subsystems in the accomplishment of an organisation's task
(a) Integrity
(b) Territorial Differentiation
(c) Exploitation
(d) Degration
Q.6: It is the right to take action, utilise organisational resources
and exact obedience frm subordinates
35
(a) Authority
(b) Legitimacy
(c) Power
(d) Status
Q.7: The process by which a manager assigns a portion of his
total work load to others
(a) Delegation
(b) Delivering
(c) Delaying
(d) None
Q.8: ................................... is the process of systematically retaining
power and authority in the hands of higher-level managers
(a) Centralization
(b) Decentralization
(c) Delegation
(d) Centre Orient
Q.9: Functional organisation is an organisation where-
(a) Chief executive does work alone
(b) Only supervisor and their workers exist together
(c) Line authority, staff & functional authority exist
(d) None
Q.I0: .................... .is the process of guiding, inspiring, supervising
and commanding subordinates towards the goal
accomplishment.
(a) Supervision
(b) Delegation
(c) Directing
(d) Motivating
Q.ll: The ability to work with and through other people and to
work effectively as a group member-
(a) Human skills
(b) Conceptual skill
(c) Technical
(d) Personal skill
Q.12: The cognitive ability to see the organisation sa a whole
36
and the relationship among its parts is known as -

(a) Conceptual skills
(b) Technical skill
(c) Human skill
(d) Personal skill
Q.13: The understanding of, and proficiency in, the performance
of specific tasks is
(a) Conceptual skill
(b) Technical skill
(c) Human skill
(d) Personal skill
Q.14: The process through which passing of information,
understanding from one person to another, usually with
the intent to motivate or influence behaviour ......... .
(a) Communication
(b) Coordination
(c) (a) & (b) both
(d) None
Q.15: The process through which ideas or concepts are converted
into a form that can be transmitted to others ...
(a) Encoding
(b) Decoding
(c) Explanation
(d) None
Q.16: The process through which information received through
communication is converted back into ideas or concepts is ..
(a) Encoding
(b) Decoding
(c) Communicatin
(d) None
Q.17: When communication takes place between people on the
same level of the hierarchy is
(a) Lateral communication
(b) Upward communication
(c) Downward communication
(d) Vertical communication
37
Q.18: Untrue part of grapevine is called as

(a) Rumour
(b) Gossip
(c) Lie
(d) None
Q.19: Communication that takes place through facial
expressions, body position, eye contact and other physical
gestures is
(a) Communication through oral skills
(b) Verbal communication
(c) Non-verbal communication
(d) None
Q.20: The ability to identify with the feelings and thoughts of
another person
(a) Empathy
(b) Adaptibility
(c) Suitability
(d) Empowerment
Q.21: In ERG Model, ERG stands for
(a) Expectancy, Relational, Grooming
(b) Expectancy, Relatedness, Growth
(c) Expectancy, Relatedness, Growth of man
(d) Existence, Relatedness, Growth
Q.22: Planned change does include one of the following
elements.
(a) Technology
(b) Structure
(c) People
(d) Environment
Q.23: Change actions cover all except one of the following in a
change programme ....
(a) Changing
(b) Humiliating
(c) Unfreezing
(d) Refreezing
38
Q.24: Expression of human response to change is ........ .

(a) Resistance
(b) Motivation
(c) Planning
(d) Organising
Q.25: Organisations resist to change because of...... .
(a) Sunk cost
(b) Enviornmental changes
(c) Political situation
(d) Legal constraints
Q.26: An external change agent is in the form of ............. .
(a) As an employee
(b) Consultants for change
(c) As a manager
(d) As a line person
Q.27: Charismatic leadership theory is also called as ............. .
(a) Great man theory
(b) Trait theory
(c) Behavioural theory
(d) Situational theory
Q.28: A manager centralizes decision making power in himself
is ....... .
(a) Participativeleadership
(b) Free Rein leadership
(c) Autocratic leadership
(d) Informalleadership
Q.29: Which is not a form, of autocratic leader?
(a) Strict
(b) Benevolent
(c) Incompetent
(d) Free rein
Q.30: Mostly widely known appraoches of leadership style is
the managerial grid which has been developed by .............. .
(a) Blake and Mouton
(b) W.J. Reddin
(c) Rensis Likert
39
(d) Elton Mayo

Q.31: Which of the following is an effective leadership style
according to tridimensional grid.
(a) Missionary
(b) Compromiser
(c) Autocrat
(d) Developer
Q.32: Which one of the following is not a contextual variable
according to Fiedler's contingency model.
(a) Leader-member relations
(b) Task structure
(c) Position power
(d) Planning system
Q.33: Which numbers do represent team approach in
management grid.
(a) 1,9
(b) 9,9
(c) 5,5
(d) 9,1
Q.34: Which is not an element of communication process?
(a) Encoding
(b) Channel
(c) Receiver
(d) Measurement
Q.35: Which one of the following is not a function of
communica tion?
(a) Information function
(b) Command & Instructive Function
(c) Integrative function
(d) Promoting employees
Q.36: Managers spend maximum time in which form of
communication?
(a) Oral communication
(b) Written communication
(c) Non-verbal communication
40
(d) Pictorial communication

Q.37: Grapevine is also ............ .
(a) Informal communication
(b) Formal communication
(c) Written communication
(d) Pictorial communication
Q.38: Upward communication flows ................... .
(a) From supervisor to subordinate
(b) From subordinate to superior
(c) From peer to peer
(d) From managers to workers
Q.39: Premature evaluation comes under which types of barriers.
(a) Semantic barriers
(b) Psychological barriers
(c) Organisational barriers
(d) Personal barriers
Q.40: Which one of the following statement is true?
(a) Planning is backward looking
(b) Control is forward looking
(c) Planning is just the reverse of control
(d) Planning and control are not related
Q.41: Which is not relevant for operational control?
(a) Feedforward control
(b) Feedback control
(c) Concurrent control
(d) Strategic control
Q.42: Management by exception has basic ingredients.
(a) Measurement
(b) all points
(c) middle points
(d) marginal points
Q.43: Which is not essential element of an effective control
system?
(a) Rigid
(b) Flexible
41
(c) Economical
(d) Simple
Q.44: Managementcontrolis the process of ensuring that ............ .
activities conform to planned activities.
(a) Actual
(b) Virtual
(c) Desired
(d) Al of these
Q.45: Control is needed to create ........................................... .
(a) Better quality
(b) Improvements
(c) Environmental changes
(d) None
Q.46: Designing of control systems provides accurate feedback
and identifies ................ .
(a) Problems
(b) Key performance areas
(c) Valuable time
(d) Factors of measurement
Q.47: ................................... are those aspects of a unit or
organisation that must function effectively if the entire unit
or organisation to succeed.
(a) Strategic control points
(b) Key performance or key result area
(c) Control systems
(d) None
Q.48: Critical points in a system at which monitoring or
information collecting should occur are called .................... .
(a) Control points
(b) Strategic points
(c) Monitoring points
(d) Strategic control points
Q.49: Monentary analysis of the flow of goods and services into
and out of the organisation is ....... .
(a) Financial statement
42
Principles & Practices o/Management
(b) Statement of flow

(c) Monetary statement
(d) None
Q.50: ......................... is the description of the organisation in terms
of its assets, liabilities and net worth.
(a) Balance sheet
(b) Financial statement
(c) Statement of assets and liabilities
(d) All of these
Q.51: Formal quantitative statement of resources allocated for
planned activities over given periods of time is known
as ................. .
(a) Balance sheet
(b) Control statement
(c) Income statement
(d) Budget
Q.52: In a ..................................., performance is measured by the
numerical difference between revenues (outputs) and
expenditure (inputs)
(a) Profit center
(b) Cost center
(c) Expense center (d Revenue center
Q.53: In........................................inputs are measured by the control
system in monetary terms, but outputs are not
(a) Cost center
(b) Profit center
(c) Revenue center
(d) None
Q.54: Organisational unit that not only measures the monetary
val ue ofinpu ts and outputs, but also compares outputs with
assets used in producing them is an .......................... .
(a) Revenue center
(b) Expense center
(c) Profit center
(d) Investment center
43
Q.55: The ................................. .indicate the goods and services the

organisation expects to consume in the budget period.
(a) Operating budget
(b) Budget
(c) Financial statement
(d) None of these
Q.56: Budget detailing the money expected to be spent during
the budget period and indicating its sources is known
as ................................. .
(a) Operating budget
(b) Financial budget
(c) Organisation budgets
(d) Financial statements
Q.57: Revenue budgets are budget for projected sales revenue
used to measure ...................... and ......................... .
(a) Cost, sales revenue
(b) Marketing, sales
effectiveness
(c) Cost, profit
(d) None
Q.58: .......................... .is a type of expense budget that is used for
departments in which output cannot be accurately
measured.
(a) Expense budget
(b) Engineered cost budget
(c) Discretionary cost budget
(d) Revenue budget
Q.59: Budget explaining where money was applied is
(a) Financial budget
(b) Operating budget
(c) Expense budget
(d) All of these
Q.60: A traditional external audit is a ........................ process
involving the independent appraisal of the organisation's
financial accounts and statements.
44
(a) Verification
(b) Appraisal
(c) Accuracy
(d) None of these
Q.61: The process of appraisal is ....................... .
(a) Budgeting
(b) Costing
(c) Auditing
(d) Maintaining
Q.62: Audit performed by the organisation to ensure that its
assets are properly safeguarded and its financial records
reliably kept is called ....
(a) Internal audit
(b) External audit
(c) Auditing
(d) Budgeting
Q.63: Any organisational or functional unit headed by a manager
who is responsible for the activities of that unit is called
a ....... .
(a) Profit center
(b) Cost center
(c) Control center
(d) Responsibility center
Q.64: ............................ are those which are possessed by various
individuals since their brith.
(a) Innate qualities
(b) Acquirable qualities
(c) Managerial qualities
(d) None of these
Q.65: Participative leadership is also known as .............. .
(a) Directive leadership
(b) Democrative leadership
(c) Monothetic leadership
(d) None of these
Q.66: A. ........................... determines what subordiantes need to
do to achieve objectives.
45
(a) Transactionalleader
(b) Tranformationalleader
(c) Both (a) & (b)
(d) None of these
Q.67: In ........................... .leadership style, a manager centralises
decision making power in himself.
(a) Autocratic
(b) Participative
(c) Free rein
(d) All of these
Q.68: The person who contacts other persons with the objective
f passing the message is called .......... .
(a) Sender
(b) Receiver
(c) Communicator
(d) All of them
Q.69: ........................... .is required to ensure that the receiver has
received the message and understood it in the same .sense
as the sender intended.
(a) Channel
(b) Feedback
(c) Decoding
(d) Receiver
Q.70: In ............................, the sender sends the message and the
receiver's response come back to the sender.
(a) One way communication
(b) Two-way communication
(c) Multi-way communication
(d) None of them
Q.71: The two way communication have problem of ................ .
(a) Cognitive dissonance
(b) Polarisation
(c) Both (a) & (b)
(d) None of them
Q.72: ........................... .is the flow of information between persons
of the same hierarchic level.
46
(a) Downward communicatin

(b) Horizontal communication
(c) Upward communication
(d) Both (a) & (b)
Q.73: ............................ are the prime barriers in interpersonal
communication.
(a) Organisational barriers
(b) Emotional factors
(c) Semantic
(d) None of these
Q.74: Control is .......... .
(a) Forward looking
(b) Executive process
(c) Continuous process
(d) All of these
Q.75: ........................... .is exercised during the operation of a
programme.
(a) Feed forward control
(b) Concurrent control
(c) Feedback control
(d) No control
Q.76: Management by exception is useful in ................ ..
(a) Quality control
(b) Break - even levels
(c) Economic order quantity
Q.77: ............................... refers to the study of gestures, facial
configurations, and other movements of body to
communicate message.
(a) Pictorial communication
(b) Verbal communication
(c) Non-verbal communicatin
(d) Oral communication
Q.78: In ............................, the communication moves in a circle.
(a) Wheel network
47
(b) Circular network

(c) Free flow network
(d) Invested network
Q.79: Control based on the measurement of the results of an
action is known as .............. .
(a) Control by exception
(b) Feed forward control
(c) Feedback control
(d) Concurrent control
Q.80: Social changes, political and legal changes, change in
market conditions are the .......................... .in organisation
change.
(a) External factors
(b) Internal factors
(c) Controllable factors
(d) None of above
Q.81: "Changing span of management" comes under the
category of.................... .
(a) Technology-related changtes
(b) Task-related changes
(c) Structure-related changes
(d) People related changes
Q.82: .Changes in methods of production like conversion of unit
production to man production is referred as .......... .
(a) Technology related change
(b) Task related change
(c) People related change
(d) None of these
Q.83: The process, in which a person carts aside his old behaviour
which might be inappropriate, irevelant or inadequate to
the changing demands of situation, is known as ............ .
(a) Unfreezing
(b) Changing
(c) Refreezing
(d) Feedback
48
Q.84: A grapevine information which is communicated without

any standard of evidence being presented, is called .............. .
(a) Multiple channel information
(b) Rumour
(c) Reliable information
(d) None of these
Q.85: Last step in the process of communication is .......... .
(a) Measurement of performance
(b) Establishment control standards
(c) Correction of deviations
(d) None of these
Q.86: Written communication has/have ........... .
(a) Lack of proof
(b) Lack of authenticity
(c) Lack of secrecy
(d) Both (a) & (b)

(Unit-4)
Ans.l: Balancing effectiveness & efficiency
Ans.2: Training
Ans.3: Top Managers
Ans.5: Integrity
Ans.6: Authority
Ans.7: Delegation
Ans.8: Centralization
Ans.9: Line authority, staff & functional authority exist
Ans.l0: Directing
Ans.ll: Human skills
Ans.12: Conceptual skills
Ans.13: Technical skill
Ans.14: Communication
Ans.15: Encoding
Ans.16: Decoding
Ans.17: Lateral communication
49
Ans.18: Rumour
Ans.19: Non-verbal communication
Ans.20: Empathy
Ans.21: Existence, Relatedness, Growth
Ans.22: Environment
Ans.23: Humiliating
Ans.24: Resistance
Ans.25: Sunk cost
Ans.26: Consultants for change
Ans.27: Great man theory
Ans.28: Autocratic leadership
Ans.29: Free rein
Ans.30: Blake and Mouton
Ans.31: Developer
Ans.32: Planning system
Ans.33: 9,9
Ans.34: Measurement
Ans.35: Promoting employeers
Ans.36: Oral communication
Ans.37: Informal communication
Ans.38: From subordinate to superior
Ans.39: Psychological barriers
Ans.40: Control is forward looking
Ans.41: Strategic control
Ans.42: Measurement
Ans.43: Rigid
Ans.44: Actual
Ans.45: Better quality
Ans.46: Key performance areas
Ans.47: Key performance or key result area
Ans.48: Strategic control points
Ans.49: Financial statement
Ans.50: Balance sheet
Ans.51: Budget
Ans.52: Profit center
Ans.53: Cost center
Ans.54: Investment center
50
Ans.55: Operating budget

Ans.56: Financial budget
Ans.57: Marketing, sales effectiveness
Ans.58: Discretionary cost budget
Ans.59: Expense budget
Ans.60: Verification
Ans.61: Auditing
Ans.62: Internal audit
Ans.63: Responsibility ~enter
Ans.64: Innate qualities
Ans.65: Democrative leadership
Ans.66: Transactional leader
Ans.67: Autocratic
Ans.68: Sender
Ans.69: Feedback
Ans.70: Two-way communication
Ans.72: Horizontal communication
Ans.73: Emotional factors
Ans.74: All of these
Ans.75: Concurrent control
Ans.77: Non-verbal communication
Ans.78: Circular network
Ans.79: Feedback control
Ans.80: External factors
Ans.81: Structure-related changes
Ans.82: Technology related change
Ans.83: Unfreezing
Ans.84: Rumour
Ans.85: Correction of deviations
Ans.86: Lack of secrecy
51
Chapter 2
Managerial Economics
(Unit-I)
Q.l: Managerial Economics is a ............SCience.
(a) . Normative
(b) Positive
(c) Pure
(d) Normal
Q.2: ................... .is the objectives of the firm.
(a) Profit Maximisation / Optimisation of resources
(b) Wealth Maximisation
(c) Cost Maximisation
(d) Price Maximisation
Q.3: Managerial Economics takes help of ............ and ............... to
take business decisions.
(a) Concepts of Economics
(b) Concepts of Econometrics
(c) Quantitative Techniques
(d) Qualitative Techniques
Q.4: A branch of economics which helps in taking business
decisions is known as ........................ .
(a) Managerial Economics
(b) Management Economics
(c) Managerial Behaviour
(d) Behaviour Economics
Q.5: Study of a unit of a system is known as .............. .
(a) Micro
(b) Macro
(c) Nano
(d) Mili
53
Handbook of Multiple Choice Questions tor MBA
Q.6: Study of whole system or aggregate is known as ......... .

(a) Macro
(b) Micro
(c) Nano
(d) Mili
Q.7: Collection of firms, producing same nature of product is
known as .............. ..
(a) Industry
(b) Company
(c) Congolomerate
(d) Corporation
Q.8: The principle of knowing the present value of future cash
inflow is known as ........................ .
(a) Discounting Principle
(b) Time Period Principle
(c) Incremental Principle
(d) Equimarginal Principle
Q.9: The rate which present value of future cash inflow is
calculated is .................... .
(a) Discount Rate
(b) Interest Rate
(c) Rate of Return
(d) Future Rate
Q.l0: Cost of opportunity forgone is known as ............ .
(a) Opportunity Cost
(b) Opposite Cost
(c) Alternative Cost
(d) Other Cost
Q.ll: Opportunity cost is not possible without.. ........ ..
(a) Sacrifice
(b) Willingness
(c) Ability
(d) Want
Q.12: There should be more than .......... option to have
opportunity cost.
54
(a) One
(b) Two
(c) Three
(d) Four
Q.13: Mathematical formula to calculate present value of future
cash inflow is ....................... ..
(a) PV=~
(1 + i)"
(b) PVJ1+i)"
CF
(c) N=~
(1 + i)1
(d) CF=~
(1 + i)"
Q.14: Time period principles classifies time into ........... and
............... .for taking business decisions.
(a) Long Run
(b) Short Run
(c) Variable run
(d) Total Run
Q.15: Period of............... .is known as short run.
(a) = 1
(b) > 1
(c) < 1
(d) > 2
Q.16: Period of............... .is known as long run.
(a) < 1
(b) > 1
(c) = 1
(d) < 2
Q.17: Minimum desired condition of a rational consumer is ....... .
(a) MU= P
(b) MU<P
55
(c) MU > P
(d) MU+P
Q.18: Most desired condition of a consumer is ........ .
(a) MU = P
(b) MU-P
(c) MU> P
(d) MU<P
Q.19: In equimarginal principle a rational consumer makes ..... .
to achieve maximum satisfaction. The commodities in the
combination have same .................. .
(a) Combinations
(b) Callections
(c) Marginal Utilities
(d) Material Utilities
Q.20: Incremental cost are defined as the .......... ..... in the cost
that result from a particular decision.
(a) Total Cost
(b) Average Cost
(c) Variable Cost
(d) Managerial Cost
(Unit-I)
Ans.l: Normative science
Ans.2: Profit maximisation / optimisation of resources
Ans.3: Concepts of economics and quantitative techniques
Ans.4: Managerial economics
Ans.5: Micro economics
Ans.6: Macro economics
Ans.7: Industry
Ans.8: Discounting principle
Ans.9: Discount rate
Ans.IO: Opportunity cost
Ans.ll: Sacrifice
Ans.12: One
Ans.13: PV=~
(1 + i)"
56
Ans.14: Short run and long run

Ans.15: Less than one year
Ans.16: More than one year
Ans.17: MU = P
Ans.18: MU > P
Ans.19: Combinations, marginal utilities
Ans.20: Total cost
57
Handbook of Multiple Choice Questions fOT MBA
(Unit-2)
Q.l: .......... and ........ are the two approaches of utility.
(a) Cardinal
(b) Marginal
(c) Variable
(d) Ordinal
Q.2: Utility is not possible without... ............... .
(a) Sacrifice
(b) Sa tisfies
(c) Suggests
(d) Summaries
Q.3: Utility depends upon..................... .
(a) Intensity
(b) Density
(c) Velocity
(d) Inverse
Q.4: Equation of demand function is ................ .
(a) Q = a - bp
(b) Q=a+bp
(c) Q = p - ab
(d) Q=-a+bp
Q.5: According to law of demand, there exist an ............. .
relationship between price and quantity demand.
(a) Inverse
(b) Diverse
(c) Curve
(d) Direct
Q.6: According to law of supply, there exist a .............. .
relationship between price and quantity supplied.
(a) Direct·
(b) Indirect
(c) Diverse
(d) Inverse
58
Q.7: In the study of demand analysis price is a .......variable while

quantity demanded a ............. variable.
(a) Independent
(b) Dependent
(c) Interdependent
(d) Multidepedent
Q.8: ...........,1ncome and ......... are the three types of demand.
(a) Price
(b) Value
(c) Money
(d) Cross
Q.9: Demand curve has a ...............slope.
(a) Negative
(b) Positive
(c) Direct
(d) Natural
Q.I0: Increase in demand curve takes place due to .......... not
because of................ .
(a) Other Factors
(b) One Factor
(c) Price
(d) Value
Q.ll: ............... goods are exception to law of demand.
(a) Giffen Goods
(b) Glitter Goods
(c) Given Goods
(d) Gradual Goods
Q.12: Slope of supply curve is .............. slopping.
(a) Positive
(b) Negative
(c) Parallel
(d) Position
Q.13: Elasticity of necessary goods is ............... .
(a) Relatively Inelastic
(b) Relatively Elastic
59
(c) Perfectly Elastic

(d) Perfectly Inelastic
Q.14: Elasticity of luxurious goods is ..................... .
(a) Relatively Elastic
(b) Relatively Inelastic
(c) Perfectly Elastic
(d) Perfectly Inelastic
Q.15: Income elasticity is ............. .for inferior goods.
(a) Negative
(b) Positive
(c) Near
(d) Not
Q.16: Cross elasticity is negative for ................ goods.
(a) Complimentary
(b) Substitutes
(c) Gross
(d) Income
Q.17: Cross elasticity is ............ for close substitutes.
(a) Positive
(b) Negative
(c) Parallel
(d) Position
Q.18: According to point method; price elasticity, e p = ..........
Lower Segment
(a) ep
Upper Segment
Middle Segment
(b) ep Upper Segment
Upper Segment
(c) ep
Lower Segment
Lower Segment
(d) ep Middle Segment
Q.19: Advertising elasticity measures the responsiveness
60
between ............. with respect to ............ .

(a) % change in sales
(b) % change in revenue
(c) % change in advertising expenditure
(d) % change in revenue expenditure
Q.20: Predicting future demand is known as .............. .
(a) Demand forecasting
(b) Demand futuring
(c) Demand estimating
(d) Demand ascertaing
Q.21: The four factors of production ............. , Labour, ..........,
Enterpreneur.
(a) Land
(b) Worker
(c) Capital
(d) Money
Q.22: Cobb Douglus production function is ........... .
(a) Q = KLa Cl-a
(b) Q = KV-a Ca
(c) Q = KL" Cl-a
(d) Q = C.Ka V-a
Q.23: In short run, if the output decreases with increase in the
level of input then this behaviour is indicating ........... .
(a) Law of diminishing returns
(b) Law of increasing returns
(c) Law of down returns
(d) Law of high returns
Q.24: Law representing the relationship betw·een input and
output in long run is called ..................... .
(a) Returns to scales
(b) Returns by scale
(c) Scale ofreturns
(d) Scale to returns
Q.25: Modern approach of short run stating relationship between
input and output is known as ................... .
61
(a) Law of variable proportions

(b) Law of variable production
(c) Law of varied proportion
(d) Law of varied production
Q.26: In short run few factors are ...... and few are ........ .
(a) Fixed
(b) Flexible
(c) Variable
(d) Varied
Q.27: In long run all the factors are .................... .
(a) Variable
(b) Varies
(c) Varied
(d) Variety
Q.28: Additional cost of per unit of productin is known as .......... .
(a) Marginal Cost
(b) Material Cost
(c) Managerial Cost
(d) Musical Cost
Q.29: Total product decreases as ......... becomes ........ .
(a) Marginal Product
(b) Managerial product
(c) Negative
(d) Positive
Q.30: Total product is ......... when marginal product... ....... .
(a) Maximum
(b) Minimum
(c) Zero
(d) Negative
Q.31: Law of variable proportion has three stages ................ ,
Diminishing returns, ..................... .
(a) Increasing returns
(b) Incremental returns
(c) Negative returns
(d) Decline returns
62
Q.32: Marginal cost cuts average cost at... ........... .

(a) Optimum point
(b) Maximum point
(c) Outside point
(d) Over point
Q.33: Marginal cost falls ......... than average cost and rises faster
than average cost.
(a) Faster
(b) Slowly
(c) Slower
(d) Medium
Q.34: ................ varies with the level of output.
(a) Variable Cost
(b) Marginal Cost
(c) Varied Cost
(d) Managerial Cost
Q.35: ............. remains unchanged with the level of output in short
run.
(a) Fixed Cost
(b) Variable Cost
(c) Direct Cost
(d) Indirect Cost
Q.36: In short run ........ cost curve remains parallel to x-axis.
(a) Fixed Cost
(b) Variable Cost
(c) Direct Cost
(d) Indirect Cost
Q.37: Total cost is the sum of......... and ............. .
(a) Fixed Cost
(b) Variable Cost
(c) Marginal Cost
(d) Direct Cost
Q.38: Shape of short run average cost curve is ........... .
(a) Deep U
(b) Flat U
63
(c) Deep V
(d) Flat V
Q.39: Long run cost curve is known as ............... .
(a) Planning Curve
(b) Flexible Curve
(c) Long Curve
(d) Flat Curve
Q.40: In short run average cost curve fall to the optimum point
due to ................ .
(a) Increasing returns
(b) Decreasing returns
(c) Incremental returns
(d) Investment returns
Q.41: In short run average cost curve rises beyond the optimum
point due to ............... .
(a) DecreaSing return
(b) Increasing return
(c) Incrementalreturn
(d) Decremental return
(Unit-2)
Ans.l: Cardinal, Ordinal
Ans.2: Sacifice
Ans.3: Intensity
Ans.4: Q=a-bp
Ans.5: Inverse
Ans.6: Direct
Ans.7: Independent, dependent
Ans.8: Price, Income, Cross
Ans.9: Negative
Ans.l0: Other factors, price
Ans.l1: Giffen Goods
Ans.12: Positive
64
Ans.13: Relatively inelastic

Ans.14: Relatively elastic
Ans.15: Negative
Ans.16: Complimentary goods
Ans.17: Positive
Lower Segment
Ans.18: ep=
Upper Segment
Ans.19: % change in sales, % change in advertising expenditure
Ans.20: Demand forecasting
Ans.21: Land, Labour, Capital, Entrepreneurs
Ans.22: Q=K. U.Cl_a
Ans.23: Law of diminishing returns
Ans.24: Returns too scale
Ans.25: Law of variable proportion
Ans.26: Fixed, variable
Ans.27: Variable
Ans.28: Marginal cost
Ans.29: Marginal Product, negative
Ans.30: Maximum, Zero
Ans.31: Increasing, Diminishing, Negative
Ans.32: Optimum point
Ans.33: Faster
Ans.34: Variable cost
Ans.35: Fixed cost
Ans.36: Fixed cost
Ans.37: Fixed cost, variable cost
Ans.38: Flat U
Ans.39: Planning Curve
Ans.40: Increasing returns
Ans.41: Decreasing returns
65
(Unit-3)
Q.l: ......... is a particular place where goods are sold and
purchased.
(a) Market
(b) Industry
(c) Firm
(d) Company
Q.2: Perfect competition is said to prevail where there is a large
number of ........ and ...... .
(a) Buyers
(b) Sellers
(c) Producers
(d) Competitors
Q.3: ............ products are produced and sold under perfect
competition.
(a) Homogenous
(b) Hetrogenous
(c) Same
(d) Equal
Q.4: The demand curve of perfectly competitive firms is ..... .
(a) Perfectly elastic
(b) Perfectly Inelastic
(c) Relatively Elastic
(d) Relatively Inelastic
Q.5: Price elasticity of demand for an individual firm is ....... .
(a) Parallel to x-axis
(b) Parallel to y-axis
(c) Perpenditure to x-axis
(d) Perpenditure to origin
Q.6: Under imperfect competition the product produced are ....... .
in nature.
(a) Hetrogeneous
(b) Homogeneous
(c) Same
66
(d) Equal
Q.7: Unique product without close substitute is the main feature
of ............ market.
(a) Monopoly
(b) Oligopoly
(c) Duopoly
(d) Perfect Competition
Q.8: The demand curve of monopoly market is ............ .
(a) Downward slopping
(b) Upward slopping
(c) Parallel to x-axis
(d) Parallel to y-axis
Q.9: Under perfect competition prices are determined by the ..... .
(a) Industry
(b) Firm
(c) Company
(d) Corporation
Q.I0: Under .......... competition average revenue is equal to
marginal revenue.
(a) Perfect competition
(b) Monopoly
(c) Monopolistic Competition
(d) Duopoly
Q.ll: TL = TR - TC is the ......... function of the firm.
(a) Profit
(b) Loss
(c) Revenue
(d) Income
Q.12: A firm under perfect competition can sell .......... amountof
output at the price determined by the ....... .
(a) Unlimited
(b) Industry
(c) Firm
(d) Price
Q.13: The firms survive in the market in the short run as long as
they cover their .......................... .
67
(a) Variable Cost

(b) Marginal Cost
(c) Fixed Cost
(d) Average Cost
Q.14: In the long run perfect competitions firm gets ........ profit.
(a) Normal
(b) Abnormal
(c) Super Normal
(d) General
Q.15: ........ are called price setters becau.Se they select their
oWn ........ and supply.
(a) Monopolist
(b) Oligopoly
(c) Income
(d) Price
Q.16: Under .......... market close substittue of the product do not
exist.
(a) Monopoly
(b) Duopoly
(c) Oligopoly
(d) Market
Q.17: A. ....... .is always guided by profit motives.
(a) Monopolist
(b) Monopolistic
(c) Monopoly
(d) Monotoly
Q.18: A .......... .firm may get .............. profit even in the long run.
(a) Monopoly
(b) Profit
(c) Perfect Competition
(d) Abnormal profit
Q.19: ............... Discrimination is one of the distinguishing features
of monopoly market.
(a) Price
(b) Value
(c) Income
68
(d) Money
Q.20: Under discriminating monopoly a market is divided into
sub markets with different... ..... .
(a) Product
(b) Price elasticities
(c) Cost
(d) Demand
Q.21: The condition of profit maximisation for a discriminating
monopolist is given by MR in 1st market = MR in 2nd market
(a) MC
(b) MP
(c) MU
(d) ME
Q.22: Under monopolistic market products are produced
by .......... producers.
(a) Different
(b) Equal
(c) Same
(d) During
Q.23: Since the products are differentiated so the firms engage
themselves in ............ in order to increae the demand.
(a) Non Price Competition
(b) Price Competition
(c) Only Competition
(d) Nil Competition
Q.24: Under ....... one firm sets the price and rest follow.
(a) Price Leadership
(b) Price Mangement
(c) Price Determination
(d) Price Ownership
Q.25: ....... are formed for maximising the industry profit.
(a) Cartels
(b) Cartoous
(c) Carets
(d) Creates
69
Q.26: There are two basic methods of sharing the market. ....... .
and ............ .
(a) Cartels
(b) Joint
(c) Together
(d) mergers
Q.27: The cigarette industry is an example of ........... market.
(a) Oligopoly
(b) Duopoly
(c) Cartel
(d) Price Interdependence
Q.28: In both the chamberlin and the kinked demand curve
model, the monopolists do not... ................ .
(a) Collude
(b) Climb
(c) Creep
(d) Create
Q.29: Each firm in an oliglopolistic market faces to demand
curves on the assumption that other ............ their price.
(a) Follow
(b) Find
(c) Figure
(d) Fault
Q.30: ......... demand curve is a special feature of oligopoly market.
(a) Kinked
(b) Kind
(c) Kite
(d) Know
Q.31: Kinked demand curve is formed by two demand curves
with different... .......... .
(a) Elasticity
(b) Electricity
(c) Effciency
(d) Inefficiency
Q.32: Kinked demand curve was given by .............. .
(a) Sweezy
70
(b) Sweety
(c) Supply
(d) Sample
Q.33: For a monopolist total revenue is maximum, when
marginal revenue is ............. .
(a) Zero
(b) Negative
(c) Positive
(d) One
Q.34: In oligopoly firms are mutually ................ ..
(a) Interdependent
(b) Independent
(c) Department
(d) Inrradependent
Q.35: Cost plus pricing is also known as mark-up pricing, full
costing, ......... and ........... .
(a) Marginal cost pricing
(b) Average cost pricing
(c) Cost plus pricing
(d) Total cost pricing
Q.36: Skimming price policy is adopted where ............ of new
product is not available.
(a) Perfect substitutes
(b) Positive substitutes
(c) Close substitutes
(d) Negative substitute
Q.37: ................ is adopted where close substitute of new products
are available.
(a) Independent srrategy
(b) Mixed srrategy
(c) Open srrategy
(d) Penerration srrategy
(Unit-3)
Ans.l: Market
Ans.2: Buyers & sellers
71
Ans.3: Homogeneous
Ans.4: Perfectly elastic
Ans.5: Parallel to x-axis
Ans.6: Hetrogeneous
Ans.7: Monopoly
Ans.8: Down-ward sloping
Ans.9: Industry
Ans.l0: Perfect competition
Ans.ll: Profit
Ans.12: Unlimited, output, industry
Ans.13: Variable cost
Ans.14: Normal
Ans.15: Monopolist, price
Ans.16: Monopoly
Ans.17: Monopolist
Ans.18: Monopoly, Super Normal Profit / Abnormal Profit
Ans.19: Price
Ans.20: Price Elasticities
Ans.21: MC
Ans.22: Different
Ans.23: Non price competition
Ans.24: Price leadership
Ans.25: Cartels
Ans.26: Cartels, mergers
Ans.27: Oligopoly
Ans.28: Collude
Ans.29: Follow
Ans.30: Kinked
Ans.31: Elasticity
Ans.32: Sweezy
Ans.33: Zero
Ans.34: Interdependent
Ans.35: Cost plus,average cost
Ans.36: Close substitute
Ans.37: Penetration
72
(Unit-4)
Q.l: National income is calculated by three methods namely........,
net income and ............ ..
(a) Value added
(b) Net Expenditure
(c) Net options
(d) Net Revenue
Q.2: Consumption function states the relationship between
....... and consumption.
(a) Income
(b) Profit
(c) Money
(d) Revenue
Q.3: Government expenditures are ............. and taxation is a
...... .from the economy.
(a) Injection
(b) Withdrawal
(c) Interjection
(d) Withheld
Q.4: The surplus income earned by an enterpreneur after
deducting the cost of production is ............... profit.
(a) Gross
(b) Net
(c) Total
(d) Average
Q.5: .............. profit is reward which enterpreneur gets for
undertaking risk.
(a) Gross
(b) Net
(c) Total
(d) Average
Q.6: Uncertainity theory of profit is propended by ............ .
(a) Prof Knight
73
(b) Prof. Night

(c) Prof. Kite
(d) Prof. Kate
Q.7: Prof. Knight segregated the risk in two parts namely ......... .
and ............. .
(a) Insurable risk
(b) uninsurable risk
(c) Assurable risk
(d) unassurable risk
Q.8: Accident, theft, fire, etc. are the .............. risks.
(a) Insurable
(b) Uninsurable
(c) Non-insurable
(d) Assurable
Q.9: Change in taste or fashion is ............ risks.
(a) Uninsurable
(b) Insurable
(c) Non-insurable
(d) Assurable
Q.I0: Innovation theory of profit is proponded by ............. .
(a) Schumpeter
(b) Skimpper
(c) Skimmer
(d) Steppen
Q.ll: Indian Economy is divided into three sectors ........., ............ ,
Tertiary.
(a) Primary
(b) Secondary
(c) Firstly
(d) Totally
Q.12: ....... is the official organisation established to calculate
National Income.
(a) CSO
(b) NGO
(c) CPU
(d) Gal
74
Q.13: NNP at factor cost is known as .............. .

(a) National Income
(b) Gross Income
(c) Total Income
(d) Personal Income
Q.14: GDP is calculated at ............. and ............... .
(a) Factor Cost
(b) Market Price
(c) Total Cost
(d) Overall Cost
Q.15: Net is achieved from Gross after deduction of ........ from
gross.
(a) Depreciation
(b) Desposition
(c) Devaluation
(d) Demiation
Q.16: Per capita income = ............... .
National Income of a country
(a) Total Population of a country
Total Population of a country

(b) National Income of a country
National Source of a country

(c) Total Population of a country
Total Population of a country

(d) Net Production in a country
Q.17: ......... and ........ are the two types of Inflation.
(a) Cost push
(b) Demand pull
(c) Cost pull
(d) Demand push
Q.18: Extereme stage of Inflation is known as .............. .
(a) Hyper Inflation
75
(b) Higher Inflation

(c) Inner Inflation
(d) Upper Inflation
Q.19: Inflation is not harmful, till the stage of ....... .is not achieved.
(a) Full Employment
(b) Total Empoyment
(c) All Employment
(d) Plus Employment
Q.20: Inflation occurs due to ........ between demand
and ......... .
(a) Diequillibrium
(b) Supply
(c) Equillibrium
(d) Price
Q.21: Business cycle has four stages .......... ,.prosperity,
............ , depression
(a) Recovery
(b) Recession
(c) Rise
(d) Reverse
Q.22: Highest point of prosperity is known as ........... .
(a) Boom
(b) High
(c) Highest
(d) Rise
Q.23: Lowest point of depression is known as ............... .
(a) Trough
(b) Tight
(c) Through
(d) Thin
Q.24: Market handle risk by .............. .
(a) Risk spreading
(b) Risk adjustment
(c) Risk demiate
(d) Risk Calculate
76
Q.25: Major form of risk spredading is ............. .

(a) Insurance
(b) Assurance
(c) Non-insurance
(d) Unassurance
Q.26: Dynamic thoery of profit was given by ............. ..
(a) J.B. Clark
(b) T.B. Clark
(c) CT. Clark
(d) T.C Clark
(Unit-4)
Ans.l: Net product or value added, Net Expenditure
Ans.2: Income
Ans.3: Injection, withdrawal
Ans.4: Gross
Ans.5: Net
Ans.6: Prof. Knight
Ans.7: Insurable risk and uninsurable risk
Ans.8: Insurable risk
Ans.9: Uninsurable risk
Ans.l0: Schumpeter
Ans.ll: Primary, Secondary, Tertiary
Ans.12: Central Statistical Organisation (CSO)
Ans.13: National Income
Ans.14: Factor Cost, Market Price
Ans.15: Depreciation
National Income of a country
Ans.16: Total Population of a country
Ans.17: Cost push, Demand pull
Ans.18: Hyper Inflation
Ans.19: Full Emloyment
Ans.20: Disequillibrium, Supply
Ans.21: Recovery, Prosperity, Recession, Depression
Ans.22: Boom/ Peak
77
Ans.23: Trough
Ans.24: Risk spreading
Ans.25: Insurance
Ans.26: J.B. Clark
78
Chapter 3
Accounting & Financial Analysis
(Unit-I)
Q.l: The alternative to cash basis of accounting is
called .......... basis of accounting.
(a) Receipt
(b) Due
(c) Credit
(d) Accrual
Q.2: Total creditors account is ..........version of the creditor ledger.
(a) abridged
(b) summarized
(c) mirror
(d) related
Q.3: Recording of transaction and events as and when they occur
and classifying them into suitable account heading is the
subject matter of............ .
(a) Financial Accounting
(b) Cost Accounting
(c) Management Accounting
(d) Book Keeping
Q.4: Book Keeping is mainly concerned with the recording of
financial data relating to the ....... in significant and orderly
manner.
(a) Business
(b) Personall
(c) Company
(d) Monetary
Q.5: As per the dual aspect concept
(a) Assets = Liablities + Capital
79
(b) Assets = Liablities - Capital

(c) Assets + Liablities = Capital
(b) Assets+Capital = Liabilities
Q.6: Which of the following is correct
(a) Assets = Liabilities - Capital
(b) Assets = Capital- Liabilities
(c) Assets = Liabilities + Capital
(d) Assets = Enternal Equities
Q.7: The liabilities of a firm are Rs. 6000 and the capital of the
propreitor is Rs. 4000. The total assets are :-
(a) Rs.6000
(b) Rs.10000
(c) Rs.2000
(d) Rs.4000
Q.8: The assets are Rs. 10000 and liabilities Rs. 2000. His capital
would be-
(a) Rs. 10000
(b) Rs. 12000
(c) Rs.8000
(d) Rs.2000
Q.9: Revenue is generally recognized at the point of sale. Which
principle is applied.
(a) Consistency
(b) Marketing
(c) Realisation
(d) Cost principle
Q.l0: The assumption that a business enterprise will not be sold
or liquidated in the near future is known as ....... .
(a) Separate entity
(b) Going concern
(c) Periodic
(d) Conservatism
Q.ll: Companies must prepare financial statements at least
yearly due to the .............. concept.
(a) Business entity
(b) Going concern
80
(c) Periodic
(d) Accrual
Q.12: The ............. principal require that same accounting
methods should be used from one accounting period to the
next.
(a) Accounting period
(b) Consistency
(c) Conservatism
(d) Materiality
Q.13: Expenses not yet paid but belong to the some accounting
period are recorded due to ........ concept.
(a) Accrual
(b) Realisation
(c) Conservatism
(d) Money measurement
Q.14: There are two systems of accounting i.e. cash basis system
of accounting and .......... basis system of accounting.
(a) Double entry
(b) Accrual
(c) Dual aspect
(d) Single entry
Q.15: Classification of assets as current assets and fixed assets is
as per ........ concept.
(a) Money measurement
(b) Going concern
(c) Dual aspect
(d) Cost
Q.16: Appending notes to the financial statements is as per ...... .
convention.
(a) Materiality
(b) Disclosure
(c) Consistency
(d) Conservatism
Q.17: Accounting of a small calculator as an expense and not as
an asset is due to ........... convention.
81
(a) Disclosure
(b) Materiality
(c) Consistency
(d) Conservatism
Q.18: Following the written down method of depreciation on
particular asset year after year is because of
............... convention.
(a) Disclosure
(b) Consistency
(c) Conservatism
(d) Materiality
Q.19: Valuation of stock at lower of cost or market value is done
because of .............. convention.
(a) Disclosure
(b) Consistency
(c) Conservatism
(d) Materiality
Q.20: Making provision for doubtful debts is as per
....... convention.
(a) Disclosure
(b) Consistency
(c) Conservatism
(d) Materiality
Q.21: Contingent liability shown in balance sheet, arises due to
the accounting convention of ........
(a) Consistency
(b) Conservatism
(c) Disclosure
(d) Materiality
Q.22: Accounting principles are generally based on
(a) Practicability
(b) Subjectivity
(c) Convenience in recording
(d) Objectivity
Q.23: The system of recording transactions based on dual aspect
concept is called.
82
(a) Double account system

(b) Double entry system
(c) Single entry system
(d) Accrual basis of accunting
Q.24: According to money measurement conept the following
will be recorded in the books of accounts of the business
(a) Health of Director
(b) Quality of company goods
(c) Value of plant and machinery
(d) Utility of managers
Q.25: The convention of conservation, when applied to the
balance sheet, result in
(a) Understatement of assets
(b) Overstatement of assets
(c) Understatement of liability
(d) Overstatement of liability
Q.26: The basic function of accounting is to
(a) record all business transaction of monetary nature
(b) interpret the financial data
(c) assist the management in performing functions
effectively
(d) summarize the data
Q.27: Accounting record only transactions which are of
.......... characters
(a) Financial
(b) Personal
(c) Company
(d) Firm
Q.28: As per the Indian Accounting Standard, disclosure of
accounting policies is based on
(a) A5-I
(b) A5-2
(c) A5-3
(d) AS-4
Q.29: As per the Indian Accounting Standard, valuation of
inventories is provided in
83
(a) AS-I
(b) AS-2
(c) AS-4
(d) AS-5
Q.30: Cash Flow Statement is prepared as per the Indian
Accounting Standard
(a) AS-I
(b) AS-2
(c) AS-4
(d) AS-3
Q.31: Depreciation accounting is based on the Indian Accounting
Standard
(a) AS-4
(b) AS-5
(c) AS-6
(d) AS-7
Q.32: At present the accounting standards issued by Institute of
Chartered Accountants of India are
(a) 32
(b) 29
(c) 30
(d) 31
Q.33: Which of the following is not a source document...
(a) Cash memo
(b) Invoice & bill
(c) Pay-in Slip
(d) Cash book

(Unit-l)
Ans.l: Accrual
Ans.2: Summarised
Ans.3: Book Keeping
Ans.4: Business
Ans.5: Assets = Liabilities + Capital
Ans.6: Assets = Liabilities + Capital
84
Ans.7: Rs. 10000

Ans.8: Rs.8000
Ans.9: Realisation
Ans.l0: Going concern
Ans.ll: Periodicity
Ans.12: Consistency
Ans.13: Accrual
Ans.14: Accrual
Ans.15: Going concern
Ans.16: Disclosure
Ans.17: Materiality
Ans.18: Consistency
Ans.19: Conservatism
Ans. 21: Disclosure
Ans. 22: Practicability
Ans. 23: Double Entry System
Ans.24: Value of Plant & Machinery
Ans. 25: Understament of asset
Ans. 26: Record all business transaction of monetary nature
Ans.27: Financial
Ans. 28: AS-I
Ans. 29: AS-2
Ans. 30: AS-3
Ans. 31: AS-6
Ans.32: 32
Ans. 33: Cash book
85
Handbook of Multiple Choice Questions tor MBA

(Unit-2)
Q.l: A profit making business that has a separate legal entity
and in which ownership is divided into shares or stock is
known as:
(a) Sole proprietership
(b) Partnership
(c) Company
(d) Joint Hindu Business
Q.2: The properties owned by the business are called:
(a) Assets
(b) Liabilities
(c) Capital
(d) Accounting equation
Q.3: A debit means
(a) An increase in assets
(b) Decrease in Assets
(c) Increase in liability
(d) Increase in capital
Q.4: A debit balance in which of the following accounts would
indicate a likely error:
(a) Account receivables
(b) Cash
(c) Fees earned
(d) Miscellaneous expenses
Q.5: The golden rule for Personal Account is ........ .
(a) Debit the receiver and Credit the giver
(b) Debit the giver and Credit the receiver
(c) Debit what comes in and Credit what goes out
(d) Debit what goes out and Credit what comes in
Q.6: The golden rule for Real Account... ...... .
(b) Debit the expenses and Credit the incomes
(c) Debit comes in and Credit what goes out
86
(d) Debit goes out and Credit what comes in

Q.7: The golden rule for Nominal Account is ......
(b) Debit the expenses and Credit the incomes
(c) Debit comes in and Credit what goes out
(d) None of these
Q.8: Which of the following is correct:
(a) A = L - C
(b) A = C - L
(c) A = L + C
(d) A= Balance sheet equation
Q.9: X has liability of Rs. 25000. Assets of Rs. 40000. His capital
would be-
(a) Rs. 25000
(b) Rs.12000
(c) Rs.15000
(d) Rs.40000
Q.I0: Journal is the book of-
(a) Original entry
(b) Secondry entry
(c) All cash transactions
(d) All non-cash transactions
Q.ll: The process of recording a transaction in the journal is
called -
(a) Balancing
(b) Posting
(c) Recording
(d) Jounalizing
Q.12: Which of the following is a credit transaction
(a) Sold goods
(b) Sold goods for cash
(c) Sold goods to Ram
(d) Sold gooods to Ram for cash
Q.13: On purchase of a machine Rs. 100 paid to worker as wages
for installing the machine -
87
(a) Wage Ale be debited

(b) Installation charges be debited
(c) Machinery Ale be debited
(d) Cash AI c be debited
Q.14: Patent registered is a -
(a) Personal AI c
(b) Real Ale
(c) Nominal Ale
(d) Expenses Ale
Q.15: The following account has a credit balance -
(a) Carriage inward
(b) Carraige outward
(c) Return inward
(d) Return outward
Q.16: Into how many types the accounts can be classified ..... .
(a) 4
(b) 3
(c) 2
(d) 5
Q.17: An account is a summary of........ at one place relating to a
particular head.
(a) All transactions
(b) Some transactions
(c) Journal
(d) None
Q.18: L.F. stands for ........... .
(a) Left forward
(b) Ledger Folio
(c) Ledger Final
(d) Ledger Forward
Q.19: X sold the goods of Rs. 1000 at a trade discount of 10% and
further a cash discount of 5 % was provided. What amount
will be debited in Cash AI c .....
(a) Rs.I000
(b) Rs.900
(c) Rs.855
88
(d) Rs.950
Q.20: .............. is shown on debit side of trading account
(a) Gross profit bl d
(b) Closing stock
(c) Sales
(d) Opening stock
Q.21: If credit side is more than the debit side the balance is
shown as .......
(a) To balance cl d on credit side
(b) To balance cl d on debit side
(c) By balance cl d on credit side
(d) By balance cl d on debit side
Q.22: The tallied trial balance means that there are ...... .in the
books of accounts.
(a) no errors
(b) no frauds
(c) no casting errors
(d) no omission errors
Q.23: ........ is arrived at by deducting the direct cost of goods sold
from sales.
(a) Net loss
(b) Gross profit
(c) Net profit
(d) Cost of production
Q.24: Return ou tward book is used to record transactions related
to .........
(a) Goods returned to suppliers
(b) Goods returned from customers
(c) Goods returned to customers
(d) Goods returned from suppliers
Q.25: In a triple column cash book the column other than
discount and cash is used for recording ............ transactions
(a) Discount
(b) Payment
(c) Receipt
89
(d) Bank
Q.26: ........ records transactions of identitical nature.
(a) A journal
(b) An account
(c) A trial balance
(d) A financial statement
Q.27: Return inward book is called as .......... and records ..... .
(a) Purchase return books, goods sent back to suppliers
(b) Sales return book, goods returned by customers
(c) Sales returnm book, goods sent to customers
(d) Purchase return book, goods sent by suppliers.
Q.28: ....... occur if a transaction is not recorded whereas ......... .
occur when one error is set off against another error.
(a) Compensating error, errors of principle
(b) Error of principle, compensating error
(c) Compensating error, error of omission
(d) Error of omission, compensating error
Q.29: Identify the correct golden rules for journalisation
(a) Income and gains = debit
(b) Expenses and losses = debit
(c) Increase in equity and arrear in liability = credit
(d) Increase in assets and decrease in liability = credit
Q.30: As a rule, the closing balance in any account ends with
suffix ......... and the opening balance with suffix ......... .
(a) cjd,ajc
(b) cjd,bjd
(c) bjd, cjd
(d) bjd,ajc
Q.31: In ...... excess of debit over credit is known as ......... .
(a) Profit and loss account, net loss
(b) Profit and loss account, gross profit
(c) Trading account, gross profit
(d) Profit and loss account, net profit
Q.32: Accounting concepts includes those assumption upon
which the science of .......... .is based.
90
(a) Accounting
(b) Recording
(c) Book Keeping
(d) Double Entry System
Q.33: Outstanding rent will be recorded in ....... .
(a) Debit of Trading AI c
(b) Debit of Profit & Loss AI c
(c) Credit of Profit & Loss AI c
(d) Assets
Q.34: Provision for bad debts can be made due to ....... convention.
(a) Materiality
(b) Consistency
(c) Conservatism
(d) Accrual
Q.35: The ...... records all daily transaction of a business in the
order in which they occur.
(a) Journal
(b) Ledger
(c) Account
(d) Trial Balance
Q.36: Debit the receiver and credit the giver is the rule for
.......... account.
(a) Personal
(b) Real
(c) Nominal
(d) All of these
Q.37: The various debit and credit balances of the different
accounts are taken down in a statement which is known as
(a) Journal
(b) Final Account
(c) Trial Balance
(d) Ledger
Q.38: Closing stock balance given in the debit side of the trial
balance will be written in financial statement in .........
(a) Trading Account Debit Side
91
(b) Trading Account Credit Side

(c) Balance sheet
(d) Assets Side
Q.39: Return outward appearing in trial balance are deducted
from
(a) Sales
(b) Purchases
(c) Return Inwards
(d) Closing stock
Q.40: Salaries and wages appearing in trial balance are shown
in..... .
(a) Debit side of Trading AI c
(b) Debit side of Profit & Loss AI c
(c) Assets side of balance sheet
(d) Liability side of balance sheet
Q.41: Outstanding wages appearing in Trial Balance are shown
in ......
(a) Debit side of Profit & Loss AI c
(b) Debit side of Trading AI c
(c) Assets side of Balance sheet
(d) Liability side of Balance sheet
Q.42: Goodwill is a ....
(a) Current assets
(b) Fictitious asset
(c) Tangible asset
(d) Intangible asset
Q.43: Cash drawings are deducted from ...
(a) Sales
(b) Purchases
(c) Cash
(d) Capital
Q.44: Depreciation is related to
(a) Current assets
(b) Investment
(c) Fixed assets
92
(d) Fictitious assets

Q.45: In straight line method of charging depreciation, the
amount of depreciation........ ..
(a) Decreases
(b) Increases
(c) Remains Same
(d) None of these
Q.46: Discount on issue of debenture should be shown in
(a) Assets side of balance sheet
(b) Liability side of balance sheet
(c) Debit side of Profit & Loss AI c
(d) Credit side of Profit & Loss AI c
Q.47: Which of the following item is not taken into account while
computing current ratio
(a) Creditors
(b) Debtors
(c) furniture
(d) Bank overdraft

(Unit-2)
Ans.l: Company
Ans.2: Assets
Ans.3: An increase in assets
Ans.4: Fees earned
Ans.5: Debit the receiver and credit the giver
Ans.6: Debit what comes in and credit what goes out
Ans.7: Debit all expenses & credit all incomes
Ans.8: A=L+C
Ans.9: Rs.15000
Ans.l0: Original Entry
Ans.ll: Journalizing
Ans.12: Sold goods to Ram
Ans.13: Machinery AI c Debited
Ans.14: Real Alc
Ans.15: Return inward
93
Ans.16: 3
Ans. 17: All transactions
Ans. 18: Ledger Folio
Ans. 19: Rs. 855
Ans. 20: Opening Stock
Ans. 21: To balance cl d on debit side
Ans.22: No casting errors
Ans. 23: Gross profit
Ans. 24: Goods returned to suppliers
Ans. 25: Bank
Ans. 26: An account
Ans. 27: Sales return book, Goods returned by customer
Ans.28: Errors of omission, compensating errors
Ans.29: Expenses & losses = Debit
Ans.30: bid, cl d
Ans. 31: Profit & Loss AI c, Net Loss
Ans. 32: Accounting
Ans.33: Debit of P IL AI c
Ans.35: Journal
Ans. 36: Personal
Ans.37: Trial Balance
Ans. 38: Assets
Ans. 39: Purchases
Ans.40: Debit side of P IL AI c
Ans. 41: Liability side of Balance sheet
Ans. 42: Intangible asset
Ans. 43: Capital
Ans. 44: Fixed asset
Ans. 45: Remains same
Ans. 46: Asset side of balance sheet
Ans. 47: Furniture
94

(Unit-3)
Q.l: ...... .is a relationship between two or more variables
expressed in percentage.
(a) Proportion
(b) Rate
(c) Ratio
(d) Analyis
Q.2: Long-term solvency can be found through ...... .
(a) Liquidity Ratio
(b) Leverage Ratio
(c) Profitability Ratio
(d) Activity Ratio
Q.3: Acid test ratio is also known as
(a) Liquidity Ratio
(b) Quick Ratio
(c) Both (a) & (b)
(d) None of (a) & (b)
Q.4: Ratio analysis should not be taken as a substitute for ........ .
(a) Cash flow analysis
(b) Financial statement
(c) Sound judgment
(d) Fund flow analysis
Q.5: If current assets are Rs. 40000 and current liabilities are Rs.
20000 thus current ratio is
(a) 25: 1
(b) 2: 1
(c) 0.50: 1
(d) 1: 2
Q.6: Higher .......... ratio indicates .......... position.
(a) Current, sound short term solvency
(b) Gross profit, sound solvency
(c) Net profit, inadequate working capital
(d) Quick ratio, sound long term solvency.
95
Q.7: Debt equity ratio measures ...... of the business

(a) Profitability
(b) Activity
(c) Short term financial position
(d) Long term financial position
Q.8: Liquid assets = ...... .
(a) Current assets + Stock
(b) Current assets - Stock
(c) Current assets - (Stock + Prepaid Expenses)
Q.9: Cost of goods sold = ., ...... .
(a) Sales - Gross Profit
(b) Sales - Net Profit
(c) Sales proceeds
(d) Sales - Sales return
Q.I0: The standard norm for a current ratio is-
(a) 1: 1
(b) 1: 2
(c) 2: 1
(d) 3: 1
Q.ll: The standard norm for a liquid or acid test ratio is-
(a) 2: 3
(b) 2: 4
(c) 1: 1
(d) 3:1
Q.12: Amount from current assets is realized within ....... .
(a) One month
(b) One year
(c) Two years
(d) Not realized
Q.13: Financial statements are ...
(a) Estimates of facts
(b) Anticipated facts
(c) Recorded facts
(d) All the three (a), (b), (c)
96
Q.14: Retained earnings statement depicts ....

(a) Appropriation of Profit
(b) Estimate of Profits
(c) Estimates of cost
(d) Distribution of demand
Q.15: Comparison of the financial statements indicates the trends
of the ......... of the business.
(a) Profitability
(b) Performance
(c) Financial position
(d) All the above.
Q.16: Comparison of the financial statements of the current year
with the performance of previous year of the same firm
is ...... .
(a) Intra firm comparison
(b) Trend analysis
(c) Horizontal analysis
(d) All the above.
Q.17: Net profit will increase with ....
(a) Increase in operating expenses
(b) Increase in non-operating expenses
(c) Increase in operating income
(d) All the above
Q.18: Short term financial position will improve with
(a) Increase in current assets
(b) Increase in current liability
(c) Decrease in current assets
(d) Neither of the above.
Q.19: Ratios calculated from the past financial statement of the
same firm are known as ........ .
(a) Past Ratios
(b) Future Ratios
(c) Current Ratios
(d) All of these
Q.20: Ratios of the industry to which the firm belongs are known
as .......... ratio.
97
(a) Company
(b) Firm
(c) Industry
(d) All of these
Q.2l: .......... ratios show the proportion of a debt and equity in
financing the firm assets.
(a) Leverage
(b) Liquidity
(c) Activity
(d) None of these
Q.22: ........... ratios reflect the firm efficiency in utilising its assets.
(a) Activity
(b) Profitability
(c) Leverage
(d) Market Capitalisation
Q.23: A firm sales are Rs. 450000, cost of goods sold is Rs. 240000.
Find out gross profit ratio.
(a) 53.33%
(b) 47%
(c) 35.65%
(d) 46.67%
Q.24: Find out the gross profit from the following information:-
If gross sales is Rs. 100000, sales return is Rs. 10000 and cost
of goods sold is Rs. 60000.
(a) Rs. 40000
(b) Rs. 30000
(c) Rs. 20000
(d) Rs.60000
Q.25: From the information given in Question No. 24, the gross
profit ratio will be ..... .
(a) 33.33%
(b) 30%
(c) 34%
(d) 60%
Q.26: Share holders' funds means ........ .
98
(a) Share Capital

(b) General Reserve
(c) Profit & LossA/c
(d) All the three
Q.27: The term financial analysis means ..... .
(a) Analysis
(b) Interpretation
(c) Both (a) & (b)
(d) None
Q.28: In financial statement analysis, sales is taken as 100% in
case of ..... .
(a) Common size income statement
(b) Common size statement
(c) Trend analysis
(d) Ratio analysis
Q.29: In case of common size balanace sheet statement, the total
liabilities will be .....
(a) 50%
(b) 100%
(c) 10%
(d) 70%

(Unit-3)
Ans.1: Ratio
Ans.2: Leverage Ratio
Ans.3: Quick Ratio
Ans.4: Financial Statement
Ans.5: 2:1
Ans.6: Current, sound short term solvency
Ans.7: Long term financial position
Ans.8: Current asset - (stock + Prepaid Expenses)
Ans.9: Sales - Gross Profit
Ans.10: 2:1
Ans.ll: 1: 1
Ans. 12: One year
Ans. 13: Recorded facts
99
Ans.14: Appropriation of profit

Ans. 15: All the above
Ans. 16: All the above
Ans. 17: Increase in operating income
Ans. 18: Increase in current assets
Ans. 19: Past ratio
Ans. 20: Industry
Ans. 21: Leverage
Ans.22: Activity
Ans. 23: 46.67%
Ans.24: Rs.30000
Ans.25: 33.33%
Ans. 26: All the three
Ans. 27: Both (a) & (b)
Ans. 28: Common size income statement
Ans. 29: 100%
100

(Unit-4)
Q.l: ....... helps the management in planning for the repayment
of loans, credit arrangement etc.
(a) Funds flow statement
(b) Cash account
(c) Ratio analysis
(d) Cash flow statement
Q.2: Fund flow statement highlights the changes in the financial
conditions of a business enteprise between two ....... .
(a) Statements
(b) Balance sheet
(c) Profit and Loss Account
(d) Working capital statements
Q.3: The word fund means the difference between ..........and
(a) Fixex assets - Current liabilities

(b) Current assets - Current liabilitis
(c) Total assets - Total liabilities
(d) Fixed Assets - Current Liabilities
Q.4: Purchase of plant will .......... working capital.
(a) Increase
(b) Decrease
(c) No effect
(d) None of these
Q.5: Issue of share capital will mean ....... in working capital.
(a) Increase
(b) Use of fund
(c) Decrease
(d) No effect
Q.6: Goodwill is a ............ transaction.
(a) Current
(b) Non-Current
(c) Fluctuating
101
(d) None of these

Q.7: Cash from operation consists of-
(a) Operating net profit
(b) Decrease in current assets
(c) Increase in curent liabilities
(d) All the above.
Q.8: Provision for taxes and dividend paid account may be
prepared to find-
(a) Taxes and dividend
(b) Tax or dividend provided
(c) Both (a) & (b)
(d) Neither of the two.
Q.9. While calculating profit from operations .......will be added
to net profit.
(a) Depreciation
(b) Goodwill written off
(c) Loss on issue of debenture
(d) all the above.
Q.I0. Cash flow statement is required for the financial planning
of.........
(a) Short range
(b) Long range
(c) Medium range
(d) Very long range
Q.ll. Inflow of cash will take place due to ..........
(a) Issue of shares
(b) Decrease in capital
(c) Increase in the value of machinery
(d) Payment of taxes
Q.12. Depreciation on fixed assets is .......
(a) An application of funds
(b) Source of funds
(c) No flow of funds
(d) Funds from operation
Q.13. Loss on sale of machinery should be added to ......... for
calculating operating profit.
102
(a) Net Profit

(b) Gross Profit
(c) Working Capital
(d) Funds from Operations
Q.14. Redemption of debenture is ......... .
(a) Source of funds
(b) Application of funds
(c) Funds from operation
(d) None of these
Q.15. Decrease in working capital is a ......... of funds.
(a) Source
(b) Reduction
(c) Allocation
(d) Funds from operation
Q.16. Discount on issue of debenture is a .........expense.
(a) Operating
(b) Fixed
(c) Nominal
(d) None-operational
Q.17. Gross working capital means ....
(a) Fixed assets - current assets
(b) Total current assets
(c) Current assets - current liabilities
(d) Total current liabilities
Q.18. Cash flow statement is based on .......... basis of accounting.
(a) Cash
(b) Funds
(c) Accrual
(d) Dual aspect
Q.19. Cash flows resulting from the sale of fixed assets are
classified as cash flow from ......... .
(a) Operating activity
(b) Financing activing
(c) Investing activity
(d) All of these
103
Q.20. Cash flows are classified into ......... categories.

(a) 2
(b) 3
(c) 4
(d) 1
Q.21. Cash comprises of cash in hand and ......... deposits with
banks.
(a) Fixed
(b) Demand
(c) Saving
(d) Term
Q.22. Cash payment to suppliers for goods and services are
classified as cash flows from .......... activities
(a) Outflow
(b) Inflow
(c) Operating
(d) Financing
Q.23. Decrease in creditors is a ....... of cash.
(a) Outflow
(b) Operation
(c) Inflow
(d) Source
Q.24. Income from investment is a cash flow from ....... activity.
(a) Operating
(b) Investing
(c) Financing
(d) None
Q.25. Repayment of long-term borrowings is a cash flow from
......... activity
(a) Operating
(b) Investing
(c) Financing
(d) All of these
Q.26. State which of the following is a non-current liability -
(a) Mortgage Loan
104
(b) Bank Overdraft

(c) Outstanding Salary
(d) Short Term Loan
Q.27. Which of the following will result into application of
funds ...
(a) Sale of Plant
(b) Payment to Creditors
(c) Issue of Share Capital
(d) Payment of Dividend
Q.28. Amount of depreciation written off in the current year will
be recorded in .........
(a) Funds Flow Statements
(b) Working Capital Statements
(c) Profit & Loss AdjustmentA/c
(d) None
Q.29. During the year an old machinery costing Rs. 10000,
depreciation provided for Rs. 6000 was disposed for Rs.
3000. The Profit/Loss on sale of machinery was ........
(a) Rs. 1000 Profit
(b) Rs. 1000 Loss
(c) Rs. 7000 Loss
(d) Rs. 6000 Loss
Q.30. Goodwill in 2006 was Rs. 100000 and in 2007 it was Rs.
70000. What will be the amount that will be recorded in the
Profit & Loss Adjustment A/ c.........
(a) Rs. 100000
(b) Rs. 70000
(c) Rs.30000
(d) None
Q.31. The opening balance of machinery was Rs. 60000 while
the closing balance was Rs. 50000 and machinery purchased
during the year was Rs. 10000. What is the amount of
depreciation...
(a) Rs.I0000
(b) Rs. 30000
105
(c) Rs. 20000

(d) Nil
Q.32. The opening balance of provision of taxation was Rs. 30000
while the closing balance was Rs. 35000. The provision made
during the year was Rs. 20000. The amount of tax paid
during the year was ...... .
(a) Rs. 20000
(b) Rs. 30000
(c) Rs.35000
(d) Rs.25000

(Unit-4)
Ans.l: Cash flow statement
Ans.2: Balance sheet
Ans.3: Current assets - Current liabilities
Ans.4: Decrease
Ans.5: Increase
Ans.6: Non-current
Ans.7: Operating net profit
Ans.9: All the above
Ans. 10: Short range
Ans. 11: Issue of shares
Ans. 12: No flow of funds
Ans. 13: Net profit
Ans. 14: Application of fund
Ans. 15: Source
Ans.16: Non-operational
Ans.17: Total current assets
Ans. 18: Cash
Ans.19: Investing activity
Ans.20: 3
Ans. 21: Demand
Ans. 22: Operating
Ans. 23: Outflow
Ans. 24: Financing
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Ans. 25: Financing

Ans. 26: Mortgage loan
Ans. 27: Payment of dividend
Ans. 28: Profit & Loss Adjustment AI c
Ans.29: Rs. 1000 loss
Ans. 30: Rs. 30000
Ans. 31: Rs. 20000
Ans. 32: Rs. 20000
107
Chapter 4
Organisational Behaviour
(Unit-I)
Q.l: Organisational Behaviour is concerned with ....... , predicting,
controlling human is organisations.
(a) Deleting
(b) Avoiding
(c) Understanding
(d) Reading
Q.2: The four variables in Organisational Behaviour are people,
structure, technology & ........
(a) Perception
(b) Environment
(c) Leadership
(d) Challenges
Q.3: The three levels of analysiS done in Organisational
Behaviour are individual, group and .......... .
(a) Organisational
(b) Team
(c) Status
(d) Role
Q.4: The basis of Autocratic Model is .................... .
(a) Money
(b) Activity
(c) Power
(d) Needs
Q.5: The basis of Custodial Model is .................... ..
(a) People
(b) Leader
(c) Economic Resources
(d) Motivation
109
Q.6: The managerial orientation in supportive model is support

towards ....... .
(a) Power
(b) Employees
(c) Leader
(d) Organisation
Q.7: In autocratic model, employees need are met through ...... .
(a) Subsistence
(b) Motivation
(c) Status
(d) Facilities
Q.8: Employee needs in custodial model are met through........ .
(a) Affiliation
(b) Actualisation
(c) Status
(d) Security
Q.9: In supportive model, employees need are met through. ........ .
(a) Food
(b) Status & ReCOgnition
(c) Money
(d) Security
Q.I0: Employee needs in collegial model are met through......... .
(a) Self Actualisation
(b) Salary
(c) Working Conditions
(d) Training
Q.ll: The concept of personality in Organisational Behaviour
has been contributed by........ .
(a) Anthropology
(b) Psychology
(c) Economics
(d) Political Science
Q.12: In autocratic model the performance result is ........ .
(a) Passive cooperation
(b) Non-cooperation
110
(c) Conflict
(d) Active cooperation
Q.13: The managerial orientation in autocratic model is ....... .
(a) Partnership
(b) Obedience
(c) Disobedience
(d) Conflict
Q.14: The managerial orientation in custodial model is .......... .
(a) Money
(b) Status
(c) Security
(d) Self-Esteem
Q.15: The managerial orientation in collegial model is ......... .
(a) Leadership
(b) Motivation
(c) Teamwork
Q.16: When the goal of an individual merges with that of the
organisation it is known as .............. .
(a) Subordinate Goal
(b) Main Goal
(c) Futuristic Goal
(d) Superordinate Goal
Q.17: The behavioristic framework of Organisational Behaviour
was given by ..................... .
(a) B.F. Skinner
(b) Maslow
(c) Pavlov & John B. Watson
(d) Alderfer
Q.18: The act of knowning an item ofinforrnation is known as ...... .
(a) Learning
(b) Cognition
(c) Perception
(d) Attitude
Q.19: Sociology has contributed the concept of ......... to O.B.
111
(a) Individual Behaviour

(b) Personality
(c) Group Behaviour
(d) Learning
Q.20: The concept that organisations are a whole consisting of
several sub parts is known as ................... .
(a) Systems Approach
(b) Situational Approach
(c) Contingency Approach
(d) Behaviouralistic Framework
(Unit-I)
Ans.l: Understanding
Ans.2: Environment.
Ans.3: Organisational level
Ans.4: Power
Ans.5: Economic Resources
Ans.6: Employees
Ans.7: Subsistence
Ans.8: Security .
Ans.9: Status & Recognition
Ans.l0: Self Actualisation
Ans.ll: Psychology
Ans.12: Passive Cooperation
Ans.13: Obedience
Ans.14: Money
Ans.15: Teamwork
Ans.16: Superordinate Goal
Ans.17: Pavlov & John B. Watson
Ans.18: Cognition
Ans.19: Group Behaviour
Ans.20: Systems Approach
112
(Unit-2)
Q.l: Perception is a ...................... process.
(a) Simple
(b) Real
(c) Cognitive
(d) Virtual
Q.2: The three determinants of perception are characteristics of
perceiver, target & ............. .
(a) Situation
(b) Time
(c) Attitude
(d) Behaviour
Q.3: When the perceiver perceives a person on the basis of the
characteristics of the group to which he belongs it is known
as .................. .
(a) Halo Effect
(b) Recency Effect
(c) Stereotyping
(d) Contrast Effect
Q.4: When the person is perceived on the basis of one trait it is
known as ................. .
(a) Halo Effect
(b) Recency Effect
(c) Stereotyping
(d) Contrast Effect
Q.5: The type of self that denotes the way a person would like to
be is known as ................ self.
(a) Basic Self
(b) Social Self
(c) Ideal Self
Q.6: A person's positive or negative orientation towards an
object, person, idea is known as ........... .
(a) Perception
113
(b) Personality
(c) Learning
(d) Attitude
Q.7: Learning is a ................change in a person's behaviour.
(a) Permanent
(b) Temporary
(c) Actual
(d) Real
Q.8: The learning theory which emphasises stimulus - response
relationship is known as .................. .
(a) Operant ConditiOning
(b) Social Learning
(c) Classical Conditioning
(d) Reinforcement
Q.9: ............. is the blind desire which seeks instant gratification
according to Freud's theory.
(a) Id
(b) Ego
(c) Superego
Q.I0: When the introduction of a negative consequence decreases
the likelihood of the occurrence of a behaviour, it is known
as ..........
(a) Positive Reinforcement
(b) Negative Reinforcement
(c) Punishment
(d) Extinction
Q.l1: A person's perception about the source of his fate is known
as ................... .
(a) Extraversion
(b) Locus of Control
(c) Self Esteem
(d) Risk Taking
Q.12: The degree to which a person likes or dislikes himself is
known as ............ .
(a) Emotional Stability
114
(b) Self Monitoring

(c) Openness to experience
(d) Self Esteem
Q.13: The extent to which a person can understand the cues of
the situation and change his behaviour accordingly is known
as ............. .
(a) Self MOnitoring
(b) Self Esteem
(c) Self Actualisation
Q.14: The extent to which a person can go in order to achieve his
objectives is known as .................. .
(a) Conscientiousness
(b) Machiavellianism
(c) Extraversion
(d) Risk Taking
Q.15: The determinants of personality are ...... , environment and
situation.
(a) Heredity
(b) Target
(c) Perception
(d) Attitude
Q.16: .............. signifies rationality in Freudian theory.
(a) Id
(b) Ego
(c) Superego
Q.17: ........... proposed the Operant Conditioning Theory.
(a) Pavlov
(b) B.F. Skinner
(c) Maslow
(d) Herzberg
Q.18: When perceptions about a person are formed on the basis
of the background against which it is perceived, it is known
as ...... :
(a) Halo Effect
115
(b) Recency Effect

(c) Contrast Effect
(d) Projection Bias
Q.l9: Reinforcing every occurrence of desirable behaviour is
known as ............... reinforcement.
(a) Continuous
(b) Intermittent
(c) Variable
(d) Fixed
Q.20: ............... defines one's comfort level in relationship with
others.
(a) Risk Taking
(b) Intuition
(c) Extraversion
(d) Judging
(Unit-2)
Ans.l: Cognitive
Ans.2: Situation
Ans.3: Stereotyping
Ans.4: Halo Effect
Ans.5: Ideal
Ans.6: Attitude
Ans.7: Permanent
Ans.8: Classical Conditioning
Ans.9: Id
Ans.lO: Punishment
Ans.ll: Locus of Control
Ans.l2: Self-Esteem
Ans.l3: Self Monitoring
Ans.l4: Machiavellianism
Ans.l5: Heredity
Ans.16: Ego
Ans.l7: B.F. Skinner
Ans.l8: Contrast Effect
Ans.l9: Continuous
Ans.20: Extraversion
116
(Unit-3)
Q.l: Movere is the Latin word for ...... .
(a) Music
(b) Machiavellianism
(c) Methods
(d) Motive
Q.2: Which of the following need has been proposed by Me
Clleland?
(a) Need for Achievement
(b) Need or Affiliation
(c) Need for Power
Q.3: Maslow's need Hierarchy theory consists of physiological
need, security need, social need, ............... and self
actualisation need.
(a) Achievement
(b) Growth
(c) Self EsteemNeed
(d) Patience
Q.4: Out of the following, whosetheory is based on Maslow's
need hierarchy theory.
(a) Adams
(b) Alderfer
(c) Porter & Lawler
(d) Vroom
Q.5: In ERG theory, R stands for .............. ..
(a) Reaction
(b) Relatedness
(c) Reinforcement
(d) Response
Q.6: ........ is the strength of an individual's preference for an
outcome.
(a) Valence
117
(b) Instrumentalty
(c) Expectancy
(d) Probabiliity
Q.7: Expectancy is subjective........... of getting an outcome.
(a) Method
(b) Duration
(c) Probability
(d) Significance
Q.8: Hygiene factors are factors which may prevent....... .
(a) Quality
(b) Dissatisfaction
(c) Subsistence
(d) Motivation
Q.9: Leadership is the process of excercising ...... .
(a) Threats
(b) Authority
(c) Influence
(d) Power
Q.I0: The managerial grid was proposed by ....... .
(a) Alderfer
(b) Fiedler
(c) Herzberg
(d) Mounton & Blake
Q.ll: High regulating and low nurturing leader behaviour is
called .......... style of leadership.
(a) Motivational
(b) Directive
(c) Democratic
(d) Creative
Q.12: ......... has proposed the contingency theory of leadership.
(a) Vroom
(b) Fiedler
(c) Adams
(d) Holland
Q.13: Needs that are satisfied externally i.e. physiological and
safety needs are known as ...............needs.
118
(a) External
(b) Internal'
(c) Lower Order
(d) Higher Order
Q.14: Needs that are satisfied internally i.e. social, ......... and self
actualization needs known as higher order needs.
(a) Physiological
(b) Safety
(c) Self Esteem
Q.15: The desire for friendly and close interpersonal relationships
are needs for ...................... .
(a) Affiliation
(b) Achievement
(c) Growth
(d) Esteem
Q.16: The leadership style in which leader takes decisions after
consultation with subordinates is known as .........style.
(a) Autocratic
(b) Democratic
(c) Laissez Faire
Q.17: Which of the following is not a stage of group
development?
(a) Forming
(b) Occuring
(c) Storming
(d) Performing
Q.18: The ability to influence a group towards the achievement
of goals is known as ...................... .
(a) Cohesiveness
(b) Teamwork
(c) Synergy
(d) Leadership
Q.19: In a ............... there is a 9 x 9 matrix outlining 81 different
leadership styles.
119
(a) Managerial Grid

(b) System
(c) Leadership Continuum
(d) Leadership Style
Q.20: Path goal theory of leadership was developed by ...... .
(a) Fiedler
(b) Paul Hersey
(c) Robert Huse
(d) Ken Blanchard
Q.21: In the managerial grid 9, 9 point is known as .......... .
(a) Task Leadership
(b) lni tia tor
(c) Autocratic Leadership
(d) Team Leadership
Q.22: In Vroom's theory of motivaion, V stands for ......... ,
(a) Vroom
(b) Ventilation
(c) Valence
(d) Verifiable
Q.23: Theory X & Y was proposed by ........... .
(a) Adams
(b) Alderfer
(c) Douglas Me Gregor
(d) Skinner
Q.24: Need for Achivement, Affiliation and Power have been
proposed by ................... .
(a) Me Clleland
(b) Alderfer
(c) Maslow
(d) Herzberg
Q.25: A leadership style in which the leader concentrates all
authority in his hands is known as .............. style.
(a) Autocratic
(b) Democratic
(c) Laissez-Faire
120
Q.26: The concept that whole is greater than the sum of its parts
is known as ............... .
(a) Synergy
(b) Social Loafing
(c) Cohensiveness
(d) Role Conflict
Q.27: A group which arises spontaneously out of interactions
among individuals is known as ................ ..
(a) Formal Group
(b) Informal Group
(c) Task Group
(d) Command Group
Q.28: The extent to which group members are attracted to each
other and want to retain group membership is known as .......
(a) Social Loafing
(b) Group Norms
(c) Cohesiveness
(d) Compatibility
Q.29: The acceptable standards of behaviour in a group are
known as .............. .
(a) Standards
(b) Rules
(c) Policies
(d) Norms
Q.30: Social needs are responsible for the formation of.. ........
(a) Teams
(b) Creativity
(c) Groups
(d) Innovation
(Unit-3)
Ans.l: Motive
Ans.3: Self-Esteem Need
Ans.4: Alderfer
121
Ans.5: Relatedness
Ans.6: Valence
Ans.7: Probability
Ans.8: Dissatisfaction
Ans.9: Influence
Ans.l0: Mounton & Blake
Ans.ll: Directive
Ans.12: Fiedler
Ans.13: Lower Order
Ans.14: Self Esteem
Ans.15: Affiliation
Ans.16: Democratic
Ans.17: Occuring
Ans.18: Leadership
Ans.19: Managerial Grid
Ans.20: Robert Huse
Ans.21: Team Leadership
Ans.22: Valence
Ans.23: Douglas Mc Gregor
Ans.24: Mc Clleland
Ans.25: Autocratic
Ans.26: Synergy
Ans.27: Informal Group
Ans.28: Cohesiveness
Ans.29: Norms
Ans.30: Groups
122
(Unit-4)
Q.l: ............. .is a process in which one party perceives that
another party has negatively affected something it cares
about.
(a) Power
(b) Conflict
(c) Authority
(d) Negotiation
Q.2: .......... conflict refers to tensions that occur between
individuals at different levels.
(a) Vertical
(b) Horizontal
(c) Lateral
(d) Diagonal
Q.3: ........conflict refers to tension between employees or groups
at the same hierarchial level.
(a) Classical
(b) Horizontal
(c) Vertical
(d) Latest
Q.4: According to the ........... view, all conflict is harmful and
should be avoided.
(a) Classical
(b) Horizontal
(c) Human Relations
(d) Latest
Q.5: The conflict which support the goals of the group to improve
its performance are known as .................... .
(a) Functional Conflict
(b) Dysfunctional Conflict
(c) Vertical Conflict
(d) Horizontal Conflict
Q.6: Conflict that hinders group performance is called ..........
123
(a) Functional Conflict

(b) Dysfunctional Conflict
(c) Vertical Conflict
(d) Horizontal Conflict
Q.7: Three different levels of conflict are interpersonal,
intra personal and ....... .
(a) Organisational
(b) Personal
(c) Individual
(d) Group
Q.8: According to the Conflict Resolution Model, the five
resolution style include ............. , ..............., compromising,
collaborating, accommodation.
(a) Resolving
(b) Coalitions
(c) Competing
(d) Bargaining
Q.9: When role expectations are inadequately defined or
substantially unknown it is known as ........... .
(a) Role Clarity
(b) Role Perception
(c) Role Conflict
(d) Role Ambiguity
Q.I0: Formation of coalitions is a ......... tactic.
(a) Conflict
(b) Change
(c) Culture
(d) Power
Q.ll: ............... .is any discontent or dissatisfaction whether
expressed or not, whether valid or not, arising out of
anything connected with the company.
(a) Conflict
(b) Politics
(c) Grievance
(d) Change
Q.12: Wage hike promised but not implemented 1S a ......... .
124
(a) Factual Grievance

(b) Legal Grievance
(c) Disguised Grievance
(d) Illegal Grievance
Q.13: .............. arises because of wrong perception of employees.
(a) Real Greivance
(b) Imaginary Grievance
(c) Compensatory Grievance
(d) Virtual Grievance
Q.14: .............. arises when employees may have dissatisfaction
for reasons unknown to them.
(a) Unknown Grievance
(b) Virtual Grievance
(c) Disguised Grievance
(d) Imaginary Grievance
Q.15: The final step in a grievance procedure in which the
grievance is referred to ............. ..
(a) HR Manager
(b) Departmental Head
(c) Trade Union
(d) Arbitrator
Q.16: ....... a device through which grievances are settled.
(a) Grievance Procedure
(b) Consultation
(c) Participation
(d) Exchange
Q.17: The grievances of employee can be identified by
........ interview.
(a) Open ended
(b) Closed ended
(c) Exit
(d) Stress
Q.18: .......... policy implies that employees are invited to discuss
their problems freely and frankly at any time.
(a) Open door
(b) Closed door
125
(c) Employee
(d) Settlement
Q.19: ........ box system aims to collect information about
grievances from the employees.
(a) Company
(b) Mutual
(c) Employees
(d) Gripe
Q.20: .............. is a condition arising from the interaction of people
and their jobs and characterized by changes within people
that force them to deviate from their normal functioning.
(a) Stress
(b) Power
(c) Authority
(d) Role
Q.21: Any movement from status quo is known as ..........
(a) Conflict
(b) Negotiation
(c) Change
(d) Participation
Q.22: Manipulation is one of the ways of overcoming ........ to
change.
(a) Affects
(b) Resistance
(c) Advantages
(d) Compulsions
Q.23: ........ is the process by which employees learn the culture
of an organisation.
(a) Socialisation
(b) Learning
(c) Culture
(d) Change
Q.24: Culture can both be an asset and a .......... .
(a) Problem
(b) Liability
(c) Merit
126
(d) Demerit
Q.25: Knowledge Acqusition is the first step in ............. .
(a) Knowledgement Management
(b) Knowledge Power
(c) Knowledge Role
(d) Knowledge Importance
(Unit-4)
Ans.l: Conflict
Ans.2: Vertical
Ans.3: Horizontal
Ans.4: Classical
Ans.5: Functional Conflict
Ans.6: Dysfunctional Conflict
Ans.7: Interpersonal, Intrapersonal and Organisational
Conflict
Ans.8: Competing
Ans.9: Role Ambiguity
Ans.l0: Power
Ans.ll: Grievance
Ans.12: Factual Grievance
Ans.13: Imaginary Grievance
Ans.14: Disguised Grievance
Ans.15: Arbitrator
Ans.16: Grievance Procedure
Ans.17: Exit
Ans.18: Open door
Ans.19: Gripe
Ans.20: Stress
Ans.21: Change
Ans.22: Resistance
Ans.23: Socialization
Ans.24: Liability
Ans.25: Knowledge Management
127
Chapter 5
Business Statistics
(Unit-l)
Q.l: Statistics refers either to ........................ Information or to
a method of dealing with ....................... information.
(a) Qualitative, Quantitative
(b) Quantitative, Qualitative
(c) Qualitative, Qualitative
(d) None of them
Q.2: Mode is a value that have the highest ............... .
(a) Frequency
(b) Range
(c) Dispersion
(d) Skewness
Q.3: Geometric mean is an ......................... average.
(a) Positional Average
(b) Mathematical Average
(c) Both (a) & (b)
(d) None of them
Q.4: Sum of deviations of all the items is zero from ................ .
(a) Mean
(b) Median
(c) Mode
(d) Geometric Mean
Q.5: Graphs are the tools used for .................. of data.
(a) Classifica tion
(b) Tabulation
(c) Analysis
(d) None of them
Q.6: A table is a systematic arrangement of statistical data in
............. and .................. .
129
(a) Rows, columns

(b) Frequency, class
(c) Data, frequency
(d) None of them
Q.7: The number of observations corresponding to a particular
class is known as the ........................... of that class.
(a) Class interval
(b) Mid Value
(c) Frequency
(d) Range
Q.8: Statistics deals with ............ .
(a) Aggregate of facts
(b) Numerically expressed phenomenon
(c) Data suitable for comparison
(d) All of these
Q.9: Data related with ....... is not statistics.
(a) ~ational income
(b) GD.P. of a country
(c) A single figure of sale
(d) Inflation in India
Q.I0: Statistics stands for methods used in .......... .
(a) Collection of data
(b) Analysis of data
(c) Both (a) & (b)
(d) None of these
Q.ll: A sample enquiry is a study of.. .......... .
(a) Representative units of universe
(b) Whole universe
(c) Stratum of universe
(d) None of these
Q.12: ......... can be located graphically.
(a) Mean
(b) Median
(c) Mode
130
Business Statistics
Q.13: Mode (Z) = ........ .

(a) 3 median - 2 mean
(b) 2 median - 3 mean
(c) 2 mean - 3 media
(d) 3 mean - 2 median
Q.14: Mean of 50 items was 80. Later on it was discovered that
two items were wrongly taken as 23 and 24 in place of 32
and 42 respectively. What will be the correct mean?
(a) 79.28
(b) 82.24
(c) 80.54
(d) 81.54
Q.15: The price of a commodity increased by 5% in year of 2001,
8% in the year of 2002 and 77% in the year of 2003. The
average increase from 2001 to 2003 is ................... .
(a) 25% (Approx)
(b) 26% (Approx)
(c) 27% (Approx)
(d) 28% (Approx)
Q.16: The geometric mean of a series is the .................. of the
product of n items.
(a) nih root
(b) n+l lh root
(c) n/2 th root
Q.17: In a bimodal series, the value of median is 25 and the value
of mode is 27, calculate the value of mean?
(a) 22
(b) 26
(c) 24
(d) 28
Q.18: In a class of 60 students, there are 10 failed students with
average marks of 17. If the total marks of all the students
are 1800, find out the average marks of those students who
have passed.
131
(a) 32.6
(b) 31.5
(c) 33.4
Q.19: The harmonic mean of the following series will be
5, 10, 15, 20, 25
(a) 10.45
(b) 10.95
(c) 11.25
Q.20: Find the combined mean height of 35 male workers and
25 female workers if their respective individual heights are
170 and 162 em respectively.
(a) 164.67 em
(b) 165.67 em
(c) 166.67 em
Q.21: .................... indicate the degree or extent to which the
various items of a series deviate from the central value.
(a) Dispersion
(b) Central tendency
(c) Moment
(d) Skewness
Q.22: .................. is a measure of dispersion which is
calculated 'purely on the basis of the two extreme values of
a series.
(a) Standard deviation
(b) Mean deviation
(c) Range
(d) Coefficient of variation
Q.23: In case of inter quartile range, the first ....... and last
.............. Observations of the series are completely ignored
in its calculation.
(a) 25% & 50%
(b) 25% & 25%
132
Business Statistics
(c) 50% & 25%

(d) 25% & 10%
Q.24: Sum of the dispersions from the ............... is minimum.
(a) Mean
(b) Median
(c) Mode
(d) S.D.
Q.2S: In any type of frequency distribution, 0' is always ......... .
the o.
(a) Greater than
(b) Less than
(c) Equal to the
(d) None of these
Q.26: Sum of the squared deviations is the least when measured
from
(a) Mean
(b) Median
(c) Mode
Q.27: Two quartile includes the .......................... ..
(a) First 50% items
(b) Last 50% items
(c) Middle 50% items
Q.28: The measure of dispersion that is most affected by the
extreme values is
(a) Standard Deviation
(b) Mean Deviation
(c) Inter Quartile range
(d) Range
Q.29: Quartile Deviation is ........ of the standard deviation.
(a) 2/3
(b) 3/4
(c) 4/5
(d) 5/6
133
Q.30: In the case of an open ended series, the most suitable

measure of dispersion is
(a) Standard deviation
(b) Quartile Deviation
(c) Mean deviation
(d) Range
Q.31: When C.V. is 50, and cr is 10, then the value of Mean will
be
(a) 10
(b) 15
(c) 20
(d) 25
Q.32: If Q} = 25 and Q 3 = 35, then the co-efficient of Quartile
Deviation is ............ .
(a) 0.19
(b) 0.16
(c) 0.11
(d) 0.24
Q.33: If the mean of 100 items is 50 and standard deviation is 10
then the coefficient of Variation is ............ .
(a) 10%
(b) 20%
(c) 25%
(d) 40%
Q.34: If 25% items are of a series are less than 20 and 25% of the
items are more than 50, the coefficient of Q.D. is ............... .
(a) 35.2%
(b) 42.8%
(c) 37.6%
(d) 39.3%
Q.35: Value of Mean deviation is least when deviations are taken
from ............ ..
(a) Mean
(b) Median
(c) Mode
134
Business Statistics
(d) None of them

Q.36: The Square of Standard deviation is equal to ......... .
(a) Variance
(b) Coefficient of variation
(c) Moment
(d) Quartile deviation
Q.37: Standard Error of standard Deviation =
(a) 0.6745 cr
(b) 1.6745 cr
(c) 6.475 cr
(d) O.06745cr
Q.38: Standard deviation is calculated by using which of the
following measure of central tendency.
(a) Arithematic mean
(b) Median
(c) Mode
(d) None of these
Q.39: Standard Deviation was introduced by .......... in 1893.
(a) Croxton & Cowdan
(b) Carl Pearson
(c) Bowley
(d) Kelly
Q.40: The standard Deviation can be defined as the .......... of the
arithmetic average of the squares of the deviation measured
from mean.
(a) nth root
(b) Cube root
(c) Square root
(d) None of these
Q.41: According to Prof. Karl Pearson the result of his coefficient
of Skewness lies between ...................................... .
(a) - 2 to - 2
(b) -3to+3
(c) -1 to + 1
(d) -ltoO
135
Q.42: If both, lower and upper quartile of a distribution are at

equal distance from median, the distribution will be
(a) Symmetrical
(b) Asseymetrical
(c) Both (a) & (b)
(d) None of them
Q.43: Mean, Median and Mode are identical in a ...................... .
(a) Assymetrical distribution
(b) Symmetrical distribution
(c) Probability distribution
(d) None of them
Q.44: If the value of mean is less than the value of mode, the
skewness is ......... .
(a) Negative
(b) Positive
(c) Fractional
(d) None of these
Q.45: ill is used as a measure of ................................ .
(a) Kurtosis
(b) Moment
(c) Skewness
(d) Dispersion
Q.46: If the value of ~ is zero, it means that distribution has ...... .
(a) Skewness
(b) No skewness
(c) Kurtosis
(d) None of these
Q.47: .......... is a measure which tells us about the shape of a
frequency distribution.
(a) Moment
(b) Kurtosis
(c) Mode
(d) Median
Q.48: The two halves of a ............. frequency distribution would
overlap each other.
136
Business Statistics
(a) Symmetrical
(b) Arymmetrical
(c) Both (a) & (b)
(d) None of these
Q.49: A series is said to have positively skewed if
(a) Mean>Median>Mode
(b) Mode>Median>Mean
(c) Mean<Median>Mode
(d) None of these
Q.50: The distribution will be Bell-shaped if
(a) Coefficient of Skewness = 0
(b) Coefficient of Skewness = -1
(c) Coefficient of Skewness = +1
(d) Coefficient of Skewness = 0.5
Q.51: The curve will be a normal curve or Mesokurtic, if
(a) P2> 3
(b) P2 < 3
(c) P2 =3
(d) None of these
Q.52: In a symmetrical Distribution, the first moment about the
mean are always eq llal to
(a) 0 (Zero)
(b) 1
(c) 3
(d) None of these
Q.53: In a symmetrical distribution, all odd moments are equal
to
(a) 0 (Zero)
(b) 1
(c) 2
(d) 3
Business Statistics
(Unit-I)
Ans.l: Quantitative, Qualitative
Ans.2: Frequency or Occurrence
137
Ans.3: Mathematical
Ans.4: Mean
Ans.5: Analysis
Ans.6: Rows & Columns
Ans.7: Frequency
Ans.S: All of these
Ans.9: A single figure of sale
Ans.l0: Both (a) & (b)
Ans.ll: Representative units of universe
Ans.13: 3 median - 2 mean
Ans.14: 80.54
Ans.15: 26% (Appromx.)
Ans.16: nth root
Ans.17: 24
Ans.18: 32.6
Ans.19: 10.95
Ans.20: 166.67cm
Ans.21: Dispersion
Ans.22: Range
Ans.23: 25% &25%
Ans.24: Median
Ans.25: Greater than
Ans.26: Mean
Ans.27: Middle 50% items
Ans.28: Range
Ans.29: 2/3
Ans.30: Quartile deviation
Ans.31: 20
Ans.32: 0.16
Ans.33: 20%
Ans.34: 42.8%
Ans.35: Median
Ans.36: Variance
Ans.37: 0.6745 cr
Ans.38: Arithmetic mean
Ans.39: Carl Pearson
138
Business Statistics
Ans.40: Square root

Ans.41: -3 to +3
Ans.42: Symmetrical
Ans.43: Symmetrical Distribution
Ans.44: Negative
Ans.45: Skewness
Ans.46: No Skewness
Ans.47: Kurtosis
Ans.4S: Symmetrical
Ans.49: Mean> Median> Mode
Ans.50: Coefficient of Skewness = 0
Ans.51: 13 2 =3
Ans.52: 0
Ans.53: A
139
Business Statistics
(Unit-2)
Q.1: The value of coefficient of correlation lies between ........... .
(a) 0 to +1
(b) 0 to-1
(c) -1 to + 1
(d) -2to+2
Q.2: When r =1, Correlation is .................... .
(a) Perfectly negative
(b) Perfectly positive
(c) Low degree positive
(d) Low degree negative
Q.3: Coefficient of correlation is significant when r is more than
........ times the probable error.
(a) 4
(b) 5
(c) 6
(d) 7
Q.4: The Carl Pearson's coefficient of correlation is the root over
of the two ............ ..
(a) Regression coefficient
(b) Quartiles
(c) Percentiles
(d) None of these
Q.5: Co-variation implies that the Two variables vary in the
.............. direction.
(a) Same
(b) Opposite
(c) Both in opposite
Q.6: If the variables of both the series are decreasing, 'r' will
be .......
(a) Negative
(b) Positive
140
Business Statistics
(c) Both (a) or (b)

(d) None of these
Q.7: In rank corelationmethod, r = -1 indicates complete......... .in
the order of ranks.
(a) Disagreement
(b) Agreement
(c) Both (a) & (b)
(d) None of these
Q.8: If the r between two variables is Zero, it means two variables
are ...... .
(a) Independent
(b) Dependent
(c) Both (a) & (b)
(d) None of these
Q.9: Graphic representation of correlation is possible
through ....... .
(a) Bar diagram
(b) Scatter diagram
(c) Pictogram
(d) None of them
Q.I0: Coefficient of correlation is .......... of the change of origin
and change of scale.
(a) Independent
(b) Dependent
(c) Both (a) & (b)
(d) None of these
Q.ll: Correlation between qualitative data can be measured
through .............. method.
(a) Carl Pearson's coefficient
(b) Spearman's rank
(c) Both (a) & (b)
(d) None of these
Q.12: The correlation coefficient ...................... .
(a) Has no limits
(b) Varies between -1 to + 1
(c) Can be more than 1
141
(d) Can be less than-1

Q.13: When only two variable are studied, it is a situation of
(a) Simple Correlation
(b) Multiple Correlation
(c) Partial Correlation
(d) Curvilinear Correlation
Q.14: If the amount of change in one variable does not bear a
constant ratio to the amount of change in the other variable,
correlation will be
(a) Linear
(b) Curvilinear
(c) Multiple
(d) Partial
Q.15: If all the points of a scatter diagram gives rise to a straight
line going upward from left to right, there is ................ .
(a) No Correlation
(b) Simple Positive Correlation
(c) Perfect Positive Correlation
(d) Perfect Negative Correlation
Q.16: Man tends to marry women who are slightly younger than
themselves. Suppose that every man married a woman who
was exactly 0.5 year younger than themselves. Which of the
following statement will be true for the correlation between
the age of men and women?
(a) Correlation = -0.5
(b) Correlation = 0.5
(c) Correlation = 1
(d) Correlation = -1
Q.17: If the correlation between body weight and high income
were high and positive, we could conclude that
(a) High income causes people to eat more food
(b) Low income causes people to eat less food
(c) High income people tend to be heavier than low income
people, on an average
(d) High income people tend to spend more of their income
on food.
142
Business Statistics
Q.18: The square root of two regression coefficients gives the

value of...................... .
(a) Correlation coefficient
(b) First moment
(c) Upper quartile
(d) Lower quartile
Q.19: If one of the two regression coefficients is more than 1, the
other one can not be .............. .
(a) Less than 1
(b) More than 1
(c) Equal to 0.5
Q.20: The correlation coefficient will be negative if both the
regression coefficients are ..................... .
(a) Positive
(b) Negative
(c) Either positive or negative
(d) None of these
Q.21: If one regression coefficient is positive, then the other
would be .................... .
(a) Negative
(b) Positive
(c) Not sure about sign
Q.22: In the case of no correlation (i.e. r = 0), the two regression
lines are .............................. to each other.
(a) Perpendicular
(b) Parrellal
(c) In opposite direction
(d) Coincide
Q.23: If the two regression lines are very closed to each other,
there will be a ................ of correlation.
(a) High degree
(b) Low degree
(c) Perfect positive
(d) Perfect negative
143
Q.24: If there is a perfect correlation (i.e. r= 1), between the two

variables, ............................. Regression line can be
drawn.
(a) Only one
(b) Two
(c) Sometimes one sometimes two
Q.25: If the two regression lines coincide each other, there is ......... .
correlation between the two variables.
(a) Perfect positive
(b) Low degree positive
(c) No correlation
(d) None of these
Q.26: Two regression coefficient are ........ of change of origin but
not of scale.
(a) Independent
(b) Dependent
(c) Sometimes dependent
(d) None of these
Q.27: The regression study which confines itself to a study of
only two variables is called ........ .
(a) Simple regression
(b) Multiple regression
(c) Both (a) & (b)
(d) None of these
Q.28: If the standard error of estimate is ............. , there is no
variation about the regression line and correlation is perfect.
(a) +1
(b) -1
(c) 0
(d) None of these
Q.29: Regression equations are algebraic expressions of......... .
(a) Regression lines
(b) Regression coefficient
(c) Both (a) & (b)
(d) None of these
144
Business Statistics
Q.30: The two regression lines cut each other at the point of ....... .
(a) Average of X
(b) Average of Y
(c) Median of X and Y
(d) Average of X and Y
Q.31: The ........................... of the two regression coefficients
gives the correlation coefficient.
(a) Geometric mean
(b) Harmonic Mean
(c) Arithmetic Mean
(d) Median
Q.32: There will be only one regression line in case of two
variables if
(a) r = 0
(b) r = 1
(c) r = -1
(d) r=lor-l
Q.33: The regression coefficients of X on Y and Y on X are -0.4
and -0.9 respectively, then the correlation coefficient will
be .......... .
(a) 0.6
(b) -0.6
(c) -0.4
(d) -0.9
Q.34: The regression coefficient of Y on X is denoted by the
symbol ................ .
(a) b xy
(b) b yX
(c) rxy
(d) r xy
Q.35: If the data relating to the two variables are plotted on a
graph paper and it gives rise to a straight line, it will be
called
(a) Linear regression Analysis
(b) Curvilinear regression Analysis
(c) Partial regression Analysis
145
Handbook of Multiple Choice ~tions for MBA

Q.36: A straight line called the line of the best fit is obtained by
(a) Method of least squares

(b) Moving averages method
(c) Weighted moving average method
(d) None of these
~-
Q.37: Y = T + 5 + C + I, represents the ..................... model of
the time series.
(a) Additive Model
(b) Multiplication Mopel
(c) Both (a) & (b)
(d) None of the above \
Q.38: A secular trend is said to be .................. , when the data
relating to a time series plotted on a graph paper gives rise
to a straight line.
(a) Linear
(b) Non-linear
(c) Can't be sure
(d) None of these
Q.39: If GD.P. growth rate of a country is constant, the time series
data will show .............. trend.
(a) Linear
(b) Non-linear
(c) Can't be sure
(d) None of them
Q.40: In a time series the repetitive recurrent pattern of change
which occurs within a year or shorter time period is called
(a) Seasonal variations

(b) Cyclical variations
(c) Secular trend
(d) None of these
Q.41: ........... is the basic tendency of a time series to grow or
decline over a period of time.
(a) Long term trend
146
Business Statistics
(b) Secular trend

(c) Both (a) & (b)
(d) None of these
Q.42: When the data of a time series plotted on a graph paper,
gives rise to a curve, it is showing ............. .
(a) Linear trend
(b) Non-linear trend
(c) Can't be sure
Q.43: The product life cycle for a product is an example of ..... .
(a) Irregular variations
(b) Seasonal variations
(c) Cyclical variations
Q.44: The increase in temperature from winter to summer is
example of......... .
(a) Cyclical variations
(b) Seasonal variations
(c) Secular trend
(d) None of these
Q.45: The increase in the price of crude petroleum oil due to
Iraq-America war is an example of.......... .
(a) Seasonal variations
(b) Irregular variations
(c) Cyclical variations
(d) Secular trend
Q.46: Yc = a + bx +cx2 is the parabola of ...... .
(a) First degree
(b) Secnd degree
(c) Third degree
Q.47: Trend refers to a long term tendency to
(a) Increase
(b) Decrease
(c) Either increase or Decrease
(d) None of these
147
Q.48: Under the multiplicative model of a time series

(a) Y = T + S +C - I
(b) Y=TxSxC+I
(c) Y = T x S x C x I
(d) Y=(T+S+C)xl
Q.49: Cyclical fluctuations are caused by
(a) Strikes
(b) Earthquakes
(c) Revolutions
Q.50: If the trend is linear, It means that
(a) GN.P. Growth rate is constant
(b) GN.P. Growth rate is variable
(c) G.N.P. Growth rate is positive
Q.51: A ................. means a year to which the data of any other
year is compared to know the percentage of increase or
decrease in change.
(a) Base year
(b) Current year
(c) Past year
(d) None of these
Q.52: ....................... is considered as the best average to be
used in the construction of an index no.
(a) Geometric mean
(b) Harmonic mean
(c) Arithmatic mean
(d) None of these
Q.53: ................................ measures the change in a price
level of the current period on the basis of the price of a base
period.
(a) Price Index Number
(b) Cost of Living Index No.
(c) Value Index Number
(d) None of these
148
Business Statistics
Q.S4: If the index number for a number of years are computed

serially on the basis of a fixed base year's data, it is an
example of ................................... .
(a) Chain base index number
(b) Fixed base index no.
(c) Industrial Index number
Q.SS: ................................. is a type of retail price index
which is constructed to measure the effect of changes in the
price of a set of goods and services on the purchasing power
of a particular community of people during a given period.
(a) Value Index Number
(b) Volume Index Number
(c) Cost of living Index Number
(d) None of these
Q.56: Quantity index numbers represents ............... changes
from one period to another period.
(a) Value
(b) Quantity
(c) Price
(d) None of these
Q.S7: Under ......... method, the base year's price remain fixed
for all the years of calculation.
(a) Chain base
(b) Fixed base
(c) Moving base
(d) None of these
Q.5S: Paasche's method of calculating index numbers satisfies ..... .
(a) Time reversal test
(b) Factor reversal test
(c) Circular test
(d) None of the above test
Q.S9: Fisher's ideal index satisfies ........... .
(a) Factor reversal test
(b) Time reversal test
(c) Both (a) & (b)
149
Q.60: Circular test is fulfilled by ............ .

(a) Fisher's Index Number
(b) Laspeyres, Index No.
(c) Paarche's Index Number
Q.61: ......... are constructed to measure the change in the level of
quantities produced or distributed during a period with
reference to some base period.
(a) Consumer Price Index Numbers
(b) Cost of Living Index Numbers
(c) Industrial Production Index
(d) None of the ab6ve
Q.62: The process of converting the two or more series of index
numbers of different base into a continuous series of index
numbers of a common base is called
(a) Base Shifting
(b) Splicing
(c) Deflating
(d) None of these
Q.63: The fisher's ideal index number is .......................... of
the index formula of Laspeyre's and Paasche's formula.
(a) Arithmetic Mean
(b) Harmonic Mean
(c) Ge8metric Mean
(d) None of these
Q.64: The equation of Time Reversal test is
(a) POl x P 10 = 1
(b) POl x P 12 X P 20 = 1
(c) POl X QOl = VOl
(d) None of these
Business Statistics
(Unit-2)
Ans.1: -1 to +1
Ans.2: Perfectly Positive
Ans.3: 6
150
Business Statistics
Ans.4: Regression Coefficients

Ans.5: Same
Ans.6: Positive
Ans.7: Disagreement
Ans.8: Independent
Ans.9: Scatter diagram
Ans.lO: Independent
Ans.11: Spearman's rank
Ans.l2: Varies between -1 to +1
Ans.l3: Simple correlation
Ans.l4: Curvilinear
Ans.l5: Perfect positive correlation
Ans.l6: Correlation = 1
Ans.l7: High income people tend to be heavier than low income
people, on an average
Ans.l8: Correlation Coefficient
Ans.l9: More than 1
Ans.20: Negative
Ans.2l: Positive
Ans.22: Perpendicular
Ans.23: High Degree
Ans.24: Only One
Ans.25: Perfect positive
Ans.26: Independent
Ans.27: Simple regression
Ans.28: 0
Ans.29: Regression lines
Ans.30: Average of X and Y
Ans.3l: Geometric mean
Ans.32: r = +1 or-l
Ans.33: - 0.6
Ans.34: by,
Ans.35: Linear Regression Analysis
Ans.36: Method of Least squares
Ans.37: Additive model
Ans.38: Linear of straight line trend
Ans.39: Linear
151
Ans.40: Seasonal Variations

Ans.42: Non-linear trend
Ans.43: Cyclical variations
Ans.44: Cyclical variation
Ans.45: Irregular variations
Ans.46: Second degree
Ans.47: Either increase or decrease
Ans.48: Y=T*C*S*I
Ans.49: N one of these
Ans.50: G.D.P. growth rate is constant
Ans.51: Base year
Ans.52: Geometric Mean
Ans.53: Price Index Number
Ans.54: Fixed Base Index Number
Ans.55: Cost of Living Index No.
Ans.56: Quantity
Ans.57: Fixed base
Ans.58: None of the abvoe test
Ans.60: None of the above
Ans.61: Industrial Production Index
Ans.62: Splicing
Ans.63: Geometric mean
Ans.64: POJ x P10 = 1
152
Business Statistics
Business Statistics
(Unit-3)
Q.l: The outcome of an random experiment is called ............... .
(a) An event
(b) Trial
(c) Permutation
(d) Combination
Q.2: Two events are said to be .......................... if the
happening of anyone of them prevents the happening of
all other events in a single experiment.
(a) Equally likely
(b) Mutually exclusive
(c) Dependent event
(d) All of these
Q.3: If we throw a unbiased dice, then coming up of 1, 2,3,4,5, or
6 will be ....................... events.
(a) Dependent event
(b) Exhaustive event
(c) Equally likely
(d) None of these
Q.4: The number of exhaustive cases in the throw of two coins
simultaneously would be ......... .
(a) 2
(b) 4
(c) 6
(d) None of these
Q.5: In Poisson distribution, the probability of the success of an
event (p) is ................ and that of failure(q) is ............. .
and numbers of trials should be ................ .
(a) Very small, very high, very large
(b) Very large, very high, very small
(c) Finite, very low, very large
(d) Infinite, very low, small
Q.6: In a binomial distribution, value of both p and q are less
than ....... But not equal to ........ .
153
(a) 0,1
(b) 1,0
(c) 2,1
(d) 1,0.5
Q.7: The normal distribution is an approximation to the
(a) Binominal distribution

(b) Poisson distribution
(c) Both (a) & (b)
(d) None of these
Q.8: Probabilities can be expressed in the form of.. ....... .
(a) Ratios
(b) Fractions
(c) Both (a) & (b)
Q.9: Number of exhaustive cases will be ........ , when two fair dices
are thrown Simultaneously.
(a) 6
(b) 12
(c) 36
(d) 24
Q.I0: The number of permutations of n dissimilar things taken
all at a time in............... .
(a) n 2
(b) n 3
(c) n!
(d) n
Q.ll: In a binomial distribution, in each trial there are only two
possible outcomes of the event which are ........... .
(a) Mutually exclusive
(b) Dependent
(c) Independent
Q.12: In a binomial distribution, all the trials are ......... of each
other.
(a) Dependent
154
Business Statistics
(b) Independent
(c) Exhaustive
Q.13: Mean (Il) and Standard Deviation (6) are the only two
parameters of the .......... ..
(a) Normal distribution
(b) Binomial distribution
(c) Poisson distribution
(d) None of these
Q.14: Tossing of a coin can be described by ........... .
(a) Binomial distribution
(b) Normal distribution
(c) Poisson distribution
Q.15: Normal distribution has ....... .
(a) Negative skewness
(b) Positive skewness
(c) No skewness
(d) None of them
Q.16: Fourth moment (Il.) of normal curve is ........ .
(a) 0-2
(b) 0
(c) 30-2
(d) 0-
Q.17: A Normal distribution is ............ .
(a) Uni-model
(b) Bi-model
(c) Multi model
(d) Any of them
Q.18: Which of the following can not be the probability of an
event.
(a) 0.0000002
(b) 0
(c) 0.9999999999
(d) 1.0000001
155
Q.19: What will be the probability that a score is an even number

when a fair die is thrown?
(a) 1/2
(b) 1/3
(c) 1/4
(d) 1/6
Q.20: The probability of a vowel being selected from a book of
English as "U" will be
(a) 1/26
(b) 5/26
(c) 1/5
(d) 1
Q.21: Two cubes each having 1,2,3,4,5 and 6 on six different faces
are rolled simultaneously. Find the probability that the sum
of upturned numbers will be equal to 12.
(a) 1/18
(b) 1/36
(c) 1/6
(d) 1/12
Q.22: In the case of mutually exclusive events
(a) P(A or B)= P(a) + P(b)
(b) P(A or B)= P(a) + P(b) + P(AUB)
(c) P(A or B)= P(a)- P(b)
(d) None of these
Q.23: For an event A and it's complement A
P(a) + p(A) = .............. .
(a) 0
(b) 1
(c) -1
(d) 0.5
Q.24: In binomial Distribution, Standard Deviation =
(a) np
(b) npq
(c) "npq
(d) n 2p
156
Business Statistics
Q.25: The rnean of a binornial distribution is 10 and standard

deviation is 2, the value of' q', will be
(a) 0.2
(b) 0.4
(c) 0.6
(d) 0.8
Q.26: The fourth rnornent (14) of Poisson Distribution is
(a) rn(rn+1)
(b) 3rn2+rn
(c) rn
(d) rn2
Q.27: The rnain pararneter of the Poisson distribution is rnean
(rn) = ........ .
(a) np
(b) npq
(c) npq2
(d) n2pq
Q.28: The norrnal curve is .................... .
(a) U shaped
(b) Bell Shaped
(c) T shaped,
(d) None of these
Q.29: In binornial distribution, )l ± 30" covers ...... of the total
area.
(a) 99.73%
(b) 95.54%
(c) 68.168%
(d) None of these
Business Statistics
(Unit-3)
Ans.l: An Event
Ans.2: Mutually Exclusive
Ans.3: Equally Likely
Ans.4: Four (4)
Ans.5: Very Small, Very High, Very Large
157
Ans.6: 1 & 0 (Zero)

Ans.7: Binomial Distribution
Ans.9: 36
Ans.l0: n!
Ans.ll: Mutually exclusive
Ans.12: Independent
Ans.13: Normal distribution
Ans.14: Binomial distribution
Ans.1S: No skewness
Ans.16: 30-2
Ans.17: Uni-model
Ans.18: 1.0000001
Ans.19: 1/2
Ans.20: 1/5
Ans.2l: 1/36
Ans.22: P(A or B)= P(a)+ P(b)
Ans.23: 1
Ans.24: npq
Ans.2S: 0.4
Ans.26: 3m2+m
Ans.27: np
Ans.28: Bell shaped
Ans.29: 95.54%
158
Business Statistics
Business Statistics
(Unit-4)
Q.l: The difference between the sample value and the population
value is called .............. .
(a) Sampling plan
(b) Sampling error
(c) Standard error
(d) None of these
Q.2: The technique of sampling in which each and every item of
universe has the same probability of being included in
sample is called ............................ .
(a) Simple Random Sampling
(b) Area Sampling
(c) Quota Sampling
(d) Stratified Sampling
Q.3: The technique and method by which population parameters
are estimated from sample studies, is known as .............. .
(a) Estimation error
(b) Estimation theory
(c) Sampling error
(d) None of theory
Q.4: Standard deviation of the sampling distribution would be
called the ........................ .
(a) Standard error
(b) Sampling error
(c) Sampling plan
(d) None of these
Q.5: If we reject a correct or true hypothesis, it means it is
.............. error.
(a) Type-I
(b) Type-II
(c) Type-III
(d) None of these
Q.6: If a hypothesis is rejected, it means that alternate hypothesis
is ....................... .
159
Handbook 01 Multiple Choice Questions lOT MBA
(a) Also rejected

(b) Accepted
(c) May be rejected
(d) None of these
Q.7: The level of confidence with which a particular hypothesis
is accepted or rejected, is known as the ....................... .
(a) Level of significance
(b) Level of error
(c) Level of estimate error
(d) Level of standard error
Q.8: Chi-Square (X2) is a ............................... Test.
(a) Parametric test
(b) Non-parametric test
(c) Central tendency test
(d) Variance test
Q.9: The Chi-Square (X2 ) distribution has only one parameter and
it is ......................... .
(a) Standard error
(b) Confidence level
(c) Degree of freedom
(d) None of these
Q.l0: F-Testis also known as ..................................... .
(a) Variance ratio test
(b) Standard error test
(c) Confidence level test
(d) None of these
Q.ll: The 't' distribution has a .................. frequency curve
which is ............................. .
(a) Bell shaped, Assymetrical
(b) Bell shaped, symmetrical
(c) U shaped, symmetrical
(d) U shaped assymetrical
Q.12: A hypothesis is a ........... statement about a population.
(a) Qualitative
(b) Quantitative
(c) Both (a) & (b)
160
Business Statistics
(d) None of them

Q.13: The mean of 't' distribution is .......... .
(a) Zero (0)
(b) 1
(c) -1
(d) 2
Q.14: Method of complete enumeration of all the items of the
universe is known as
(a) Census method/Inquiry
(b) Sample Method
(c) Both A &: B
(d) None of these
Q.15: A sample obtained from a list of persons in a telephone
directory would be ................... sample
(a) Random
(b) Convenience
(c) Area
(d) None Of these
Q.16: Type II error is denoted by the symbol
(a) ex
(b) P
(c) y
(d) None of these
Q.17: If a null hypothesis is that Ho : 11 = 50 Kg, then the alternate
hypothesis may be
(a) Ho: 11 = 50 Kg,
(b) Ho: 11 > 50 Kg,
(c) Ho: 11 < 50 Kg
(d) Any of them
Q.18: In the above given question, the appropriate test (Keeping
in mind the null and alternate hypothesis) will
be ..................... .
(a) One-tailed
(b) Two-tailed
(c) Both A & B
(d) None of these
161
Q.19: In a 3x4 table, the degree of freedom (in X2, test), will be
(a) 4
(b) 6
(c) 12
(d) None of these
Q.20: A test statistic is a statistic computed from ........... .
(a) Sample
(b) Universe
(c) Both A & B
(d) None of these
Business Statistics
(Unit-4)
Ans.l: Sampling Error
Ans.2: Simple Random Sampling
Ans.3: Estimation Theory
Ans.4: Standard Error
Ans.5: Type-I
Ans.6: Accepted
Ans.7: Level of Significance
Ans.8: Non-Parametric
Ans.9: Degree of Freedom
Ans.l0: Variance Ratio Test
Ans.ll: Bell-Shaped, Symmetrical
Ans.12: Quantitative
Ans.13: Zero (0)
Ans.14: Census method/Inquiry
Ans.15: Convenience
Ans.16: 13
Ans.17: Any of them
Ans.18: Two-tailed
Ans.19: 6
Ans.20: Sample
162
Chapter 6
Marketing Management
(Unit-1)
Q.l: Which of the following statements is correct?
(a) Marketing is the term used to refer only to the sales
function within a firm.
(b) Marketing managers usually don't get involved in
production or distribution decisions.
(c) Marketing is an activity that considers only the needs
of the organization, not the needs of society as a whole.
(d) Marketing is the process of planning and executing the
conception, pricing, promotion, and distribution of
ideas, goods, services, organizations, and events to
create and maintain relationships that will satisfy
individual and organizational objectives.
Q.2: I want to eat PIZZA, it is my ........
(a) Need
(b) Want
(c) Both
(d) Both
Q.3: Which of the following is not part of an organization's
macro- environment?
(a) Political environment
(b) Economic environment
(c) Social environment
(d) Internal environment
Q.4: In a market where demand from customers is strong, but
the organization faces acute shortages of staff, which
element of its marketing environment is likely to be most
important in corporate planning?
163
(a) Internal environment

(b) Regulatory environment
(c) Macro-economic environment
(d) Micro-economic environment
Q.5: Which of the following is not part of an organization's
intermediate-environment?
(a) Channel intermediaries
(b) Customers
(c) Statute legislation
(d) Suppliers
Q.6: Companies are prefering to sell C.F.L., it is a ......... .
(a) Selling concept
(b) Marketing concept
(c) Societal marketing cncept
(d) None
Q.7: Which of the following is not true of changes in a firm's
technological environment?
(a) New technology allows for new ways of
communicating with a firm's customers
(b) New technology always leads to benefits for firms
(c) New technology can allow new goods and. services to
be developed
(d) New technology can allow new distribution
opportunities
Q.8: Local community groups, road safety campaigning
organizations and government agencies are necessarily
_ _ _ _ _ _ _ a car manufacturer.
(a) pressure groups on
(b) regulators of
(c) intermediaries for
(d) shareholders of
Q.9: Within themicro-environment, a channel of distribution can
best be described as:
(a) all of the retailers in a country who stock a particular
type of product.
(b) all of those people and organizations involved in the
164
process of transferring a product from the producer to

the consumer.
(c) a route plan for a company's fleet of delivery trucks,
designed to minimise the cost per delivery.
(d) a route plan for a company's fleet of delivery trucks,
designed to maximise the speed of delivery.
Q.I0: SLEPT is widely used by marketers in analysing their
marketing environment. It is an acronym for:
(a) Systems, Leadership, Empowerment, People and
Tactics
(b) Strategy, Leadership, Environment, Planning and
Tactics
(c) Social, Legislation, Economic, Political and Technology
(d) Socio, Legal, Economic, Political and Technology
Q.ll: A commercial company that explicitly takes into
consideration the social consequences of its actions is most
likely to be:
(a) putting the needs of consumers before the company's
need for profit.
(b) acting philanthropically to their customers.
(c) seeking to combine social benefits with business
profitability.
(d) acting like a public sector organization.
Q.12: Which of the following is not a benefit for conducting
environmental analysis?
(a) Increase organization's exposure to politically unstable
markets
(b) Aid to decision making
(c) Choice of market and marketing mix
(d) Prioritize and manage risk factors
Q.13: Which of the following is not normally perceived as a
component of culture?
(a) Language
(b) Values
(c) Technology
(d) Motivation
165
Q.14: Engineers works as Marketing Managers in........ .

(a) Barter concept
(b) Production concept
(c) Marketing concept
(d) None
Q.15: Product include ..... .
(a) Properties
(b) Services
(c) Idea
Q.16: Cost + Profit = Sale Price is the pricing technique followed
by-
(a) Seller
(b) Marketer
(c) Both
(d) None
Q.17: Sale Price - Cost = Profitis the pricing technique followed
by-
(a) Seller
(b) Marketer
(c) Both
(d) None
(Unit-I)
Ans.l: Marketing is the process of planning and executing the
conception, pricing, promotion, and distribution of
ideas, goods, services, organizations, and events to
create and maintain relationships that will satisfy
individual and organizational objectives.
Ans.2: Want
Ans.5: Statute legislation
Ans.6: Societal marketing concept
Ans.7: New technology always leads to benefits for firms
Ans.8: Pressure groups on
166
Ans.9: All of those people and organizations involved in the

process of transferring a product from the producer to
the consumer.
Ans.I0: Socio, Legal, Economic, Political and Technology
Ans.ll: Seeking to combine social benefits with business
profitability
Ans.12: Choice of market and marketing mix
Ans.13: Technology
Ans.14: Production concept
Ans.IS: All of the above
Ans.16: Seller
Ans.17: Marketer
167
(Unit-2)
Q.l: Which of the following levels of Maslow's Hierarchy of
Needs is most likely to be associated with consumers'
purchase of items of ostentatious consumption, such as a
brand of champagne which is widely advertised for its
exclusiveness?
(a) Social esteem
(b) Love
(c) Security
(d) Physiological
Q.2: The ultimate level of segmentation leads to ........ ..
(a) Niche Marketing
(b) Local Marketing
(c) Individual Marketing
(d) None
Q.3: A number of levels of sociological influence on the buying
process can be identified. Which of the following is not
generally accepted as a sociological source of influence?
(a) Marketing influences
(b) Family influences
(c) Peer group influences
(d) Cultural influences
Q.4: Anti cancerous drugs are the example of...... .
(a) Individual Marketing
(b) Niche Marketng
(c) Local Marketging
(d) All
Q.5: Trucks & Buses are ..... .
(a) Consumer goods
(b) Industrial goods
(c) Unsught goods
(d) None
Q.6: ...... .is the act of designing the company's offering and image
168
to occupy a distinctive place in the mind of the target market.

(a) Targeting
(b) Segmentation
(c) Positioning
(d) All
Q.7: AIDAS model of Consumer Buying Behaviour was first
proposed by ....... .
(a) E.K. Strong
(b) P. Kolter
(c) G. Armstrong
(d) None
Q.8: In AIDAS model of Consumer Buying Behaviour D stands
for ....... .
(a) Demonstration
(b) Desire
(c) Decision
(d) Demand
Q.9: Which one is the correct serial of the adoption process ........ .
(a) Awareness - InterestjInformation- Evaluation - Trial
- Adoption
(b) Awareness - Interest/Information - Evaluation -
Adoption- Trial
(c) Awareness - Interest/Information- Adoption - Trial-
Evaluation
(d) None
Q.I0: ...... .is a person whose views or advice influences the
decision ..... .
(a) Decider
(b) User
(c) Buyer
(d) Influencer
Q.ll: Behaviour variables of segmentation may include:
(a) patterns of consumption
(b) brand loyalty.
(c) context for usage
(d) all of the above.
169
Q.12: Demographics, broadly defined, is the study of:

(a) population characteristics
(b) age and sex
(c) buyer behaviour
(d) attitudes and lifestyles
Q.13: Which of the following is not generally accepted as being
part of the extended marketing mix for services?
(a) Product
(b) Price
(c) Process
(d) Practice
Q.14: In the extended 3Ps for services marketing mix, the _ __
of a service may be a set of procedures, systems, mechanisms
and/ or a flow of activities that make up the entire service
product.
(a) people
(b) process
(c) performance
(d) physical evidence
Q.15: All of the following are considered to be drawbacks of local
marketing EXCEPT:
(a) it can drive up manufacturing and marketing costs by
reducing economies of scale.
(b) it can create logistical problems when the company
tries to meet varied requirements.
(c) it can attract unwanted competition.
(d) it can dilute the brand's overall image.
Q.16: All of the following would be ways to segment within the
category of psychographic segmentation EXCEPT:
(a) social class
(b) occupation
(c) lifestyle
(d) personality.
Q.17: describes changes in an individual's
behavior arising from experience.
(a) Modeling
170
(b) Motivation
(c) Perception
(d) Learning
Q.18: consists of dividing a market into
distinct groups of buyers on the basis of needs,
characteristics, or behavior who might require separate
products or marketing mixes.
(a) Product differentiation
(b) Market segmentation
(c) Market targeting
(d) Market positioning
(Unit-2)
Ans.l: Social esteem
Ans.2: Individual Marketing
Ans.3: Marketing influences
Ans.4: Niche Marketing
Ans.5: Industrial goods
Ans.6: Positioning
Ans.7: E.K. Strong
Ans.8: Desire
Ans.9: Awareness - Interest/Information - Evaluation - Trial
- Adoption
Ans.l0: Influencer
Ans.l1: All of the above
Ans.12: Popular characteristics
Ans.13: Practice
Ans.14: Process
Ans.15: it can create logistical problems when the company
tries to meet varied requirements.
Ans.16: Occupation
Ans.17: Learning
Ans.18: Market segmentation
171
(Unit-3)
Q.l: The product is the bundle of............... that a customer buys.
(a) Conveniences
(b) Features
(c) Preference
(d) Satisfaction
Q.2: The additional features that a firm adds up to its product
along with the aesthetics that it provides to give the product
a distinctive appeal differentiates a ........ product from the
......... product.
(a) Core, Formal
(b) Informal, Formal
(c) Informal, Core
(d) Core, Aesthetic
Q.3: The number or products carried by a firm at a given point
of time is called its ............... .
(a) Product Mix
(b) Prod uct line
(c) Product category
(d) Product strength
Q.4: ............. refers to a group of products clubbed together by
virtue of satisfying a particular class of needs, having
common physical or technical features and being distributed
through the same channel of distribution.
(a) Product Mix
(b) Product line
(c) Product Category
(d) Product Strength
Q.5: HLL's decision oflaunching products like Wheel & Sunlight
is example of.................... .
(a) Stretching the product backward
(b) Stretching the product downward
(c) Stretching the product laterally
(d) Enhancing the product mix
172
Q.6: The new product development process is a ....... stage process

starting with idea generation.
(a) Eight
(b) Five
(c) Seven
(d) Ten
State True or False:

Q.7: The product life cycle reflects sales and profits ofa product
over a period of time.
Q.8: In Product Life Cycle (PLC) maturity phase is high
investment phase.
Q.9: Profit maximization is similar to sales maximization.
Q.l0: Rapid skimming involves high price and low promotion
strategy.
Q.ll: Introduction phase in PLC is characterized by high
operational cost due to inefficiencies in production, time
management, unwillinges in trade, demand of high margins
and advertising.
Q.12: Product positioning is the act of commwlica ting company's
offer so that it occupies a distinct place in the mind of
customer.
Q.13: The newness of any product may be perceived when the
product has been offered a lower price.
Q.14: Brand equity refers to the assets and liabilities linked to
the brand, its name and symbol which help in adding to
and deleting from the values associated witrh that brand.
Q.15: Fad and fashion show
(a) Sharp growth - sharp decline
(b) Gradual growth - sharp decline
(c) Gradual growth followed by a gradual decline
(d) Gradual growth but never any decline
Q.16: Rapid penetration comprises of
(a) Low price and high promotion for the product.
(b) Profit maximisation and increasing market share as the
173
main objective
(c) Market is highly competitive
(d) All of them.
Q.17: Factors contributing to the brand equity of a product are -
customer loyalty, brand awareness, proprietary assets,
brand associations and perceived quality of the product.
How much do you agree to this statement
(a) CompletIeyagree
(b) Partially agree
(c) Not at all agree
(d) No comments
Q.18: Brand equity results in
(a) Value maximisation
(b) Product maximisation
(c) Profit maximisation
(d) None of them
Q.19: Product abandonment involves
(a) Discontinuing one specific product from the product
line.
(b) Discontinuing the entire product line
(c) Both of them
(d) None of them
Q.20: Breadth in product line- refers to
(a) Number of products marketed by a firm
(b) Number of product lines marketed by a firm
(c) Number of product items and nominations marketed
by a firm
d) All of them
(Unit-3)
Ans.I: Satisfaction
Ans.2: Core, formal
Ans.3: Product Mix
Ans.4: Product Line
Ans.5: Stretching the product line downward
Ans.6: seven
174
Ans.7: True
Ans.8: False
Ans.9: False
Ans.I0: False
Ans.ll: True
Ans.12: True
Ans.13: False
Ans.14: True
Ans.IS: Sharp growth - sharp decline
Ans.16: Low price and high promotion for the product
Ans.17: Completely agree
Ans.18: Profit maximisation
Ans.19: Discontinuing the entire product line
Ans.20: Number of product lines marketed by a firm
175
(Unit-4)
Q.l: Prices are kept very high in ............... pricing policy.
(a) Skimming
(b) Penetration
(c) Both of them
(d) None of them
Q.2: Prices are kept very low in order to capture the market in.......
pricing policy.
(a) Skimming
(b) Penetration
(c) Both of them
(d) None of them
Q.3: Price of a shirt is Rs. 999, is an example of .......... ..
pricing policy.
(a) Rapid Penetration
(b) Psychological
(c) Cost plus
(d) Skimming
Q.4: ............. sells the product to the final consumers for their
personal or household use.
(a) Distributor
(b) Manufacturer
(c) Retailer
(d) Wholeseller
Q.5: Speciality stores, super markets are the example of .........
(a) Retailing
(b) Wholeselling
(c) C & F
(d) COBO
Q.6: ........ .includes all the activities involved in selling goods or
services to those who bring for resale or business use.
(a) Trading
(b) Retaling
176
(c) Ou tsourcing
(d) Wholeselling
Q.7: Coal, farming products are .................. products.
(a) Consumer
(b) Industrial
(c) Institutional
(d) FMCG
Q.8: Sale is a ............ activity.
(a) Promotional
(b) Pricing
(c) Selling
(d) Distribution
Q.9: Paid form of publicity is ................. .
(a) Promotion
(b) Publicity
(c) Advertising
(d) POP
Q.I0: Press Relations, Lobbying are the activities of...... .
(a) Advertising
(b) Public Relations
(c) Publicity
(d) Media Planning
Q.l1: ................ involves the use of the telephones & Call Centres
to attract prospects.
(a) e-Marketing
(b) Telemarketing
(c) Promotion
(d) Direct Marketing
Q.12: The use of tax & e-mail to conduct transaction, ATMs and
Smart Cards, Internet & Online Services are the examples ..... .
(a) e-Marketing
(b) Direct Marketing
(c) Telemarketing
(d) e-Communication
Q.13: Marketer try to build long terrm relationship with
customers in ............. .
177
(a) CRM
(b) PRM
(c) e-CRM
(d) All of them
Q.14: Marketer try to build long term relationship with its
channel partner in............. ..
(a) CRM
(b) PRM
(c) e-CRM
(d) All of them
Q.15: ................ are tangible /intangible in nature.
(a) Tangible
(b) Intangible
(c) Invisible
(d) None of them
Q.16: Service, production and consumption is a simultaneous
process. (True / False).
Q.17: Storage of Services is ........ .
(a) Possible
(b) Impossible
(c) Dependant on goods/service
(d) None of them
Q.18: Maximum employment is given by ........ .
(a) Manufacturing
(b) Service
(c) IT enabled servces
(d) Consumer Goods
Q.19: There are ............. in service marketing.
(a) 4 Ps
(b) 5 Ps
(c) 6 Ps
(d) 7 Ps
Q.20: Which is not the expanded service marketing mix.
(a) Product
(b) Process
(c) People
178
(d) Physical Evidence

Q.21: Standardization is difficult in case of ......... .
(a) Good
(b) Services
(c) Ideas
(d) All of them
(Unit-4)
Ans.l: Skimming
Ans.2: Penetration
Ans.3: Psychological
Ans.4: Retailer
Ans.5: Retailing
Ans.6: Wholeselling
Ans.7: Industrial
Ans.8: Promotional
Ans.9: Advertising
Ans.l0: Public Relations
Ans.ll: Tele-marketing
Ans.12: e-marketing
Ans.13: CRM
Ans.14: P.R.M.
Ans.15: Intangible
Ans.16: True
Ans.17: Service is not possible
Ans.18: Service sector
Ans.19: 7Ps
Ans.20: Product
Ans.21: Services
179
Chapter 7
Computer Applications
(Unit-I)
Q.l: The basic operations performed by a computer are ........ .
(a) Arithmetic operation
(b) Logical operation
(c) Storage and retrieval
Q.2: Word length of a personal computer is ....... .
(a) 4 bits
(b) 8 bits
(c) 16 bits
(d) 64 bits
Q.3: Size of the primary memory of a Personal Computer ranges
between ..... .
(a) 2 KB to 8 KB
(b) 64 KB & 256 KB
(c) 256 KB & 640 KB
(d) None of these
Q.4: Programmes stored in ROM are called ..... .
(a) Hardware
(b) Firmware
(c) Software
(d) None of these
Q.5: The unit KIPS is used to measure the speed of........ .
(a) Processor
(b) Disk drive
(c) Printer
(d) Tape drive
Q.6: Which device is used as a standard pointing device in a
GUI environment.
181
Handbook 01 Multiple Choice Questions lor MBA
(a) Keyboard
(b) Joystick
(c) Mouse
(d) Track ball
Q.7: Which of the following is not an output device ...... .
(a) Scanner
(b) Printer
(c) Flat screen
(d) Touch screen
Q.8: Which of the following device have a limitations that we
can only give information to it but cannot erase or modify
it.
(a) Floppy disk
(b) Hard disk
(c) Tape drive
(d) CDROM
Q.9: Which technology is used in Compact Disk.
(a) Mechanical
(b) Electrical
(c) Electromagnetic
(d) Laser
Q.I0: Which of the following storage device can store maximum
amount of data?
(a) Floppy Disk
(b) Hard Disk
(c) Compact Disk
(d) Magnetic Optic Disk
Q.ll: Primary Memory stores ........ .
(a) Data alone
(b) Programme alone
(c) Result alone
(d) All of these
Q.12: The brain of the computer is ....... .
(a) Monitor
(b) Motherboard
(c) CPU
182
(d) Printer
Q.13: RAM stands for ........ .
(a) Really Access Memory
(b) Real Access Memory
(c) Random Available Memory
(d) Random Access Memory
Q.14: Instructions that tell the computer what to do and how to
do ....
(a) Hardware
(b) Software
(c) Processor
(d) Data Flow
Q.15: The main chip in the computer is ..... .
(a) ROM
(b) CPU
(c) NET
(d) RAM
Q.16: An example of input device is ........ .
(a) Speaker
(b) Mouse
(c) Printer
(d) Monitor
Q.17: The ............ of a computer system is the place where the
actual execution of the instruction takes place.
(a) LU
(b) ALU
(c) Memory
(d) None of these
Q.18: The third generation was based on............ technology
(a) DC
(b) AC
(c) IC
(d) None of these
Q.19: VLSI stands for ......... .
(a) Very local small integration
(b) Very large scale integration
183
(c) Very large storage integration

(d) None of these
Q.20: Characteristics of computers ...... .
(a) Speed
(b) Accuracy
(c) Diligence
(d) All of these
Q.21: The process of entering data and instructions into the
computer system ........
(a) Inserting
(b) Inputting
(c) Processing
(d) Storing
Q.22: Binary digit is often reffered to by the comon
abbreviation......
(a) Byte
(b) Bit
(c) Bits
(d) None of these
Q.23: The binary number system is exactly like the decimal
system except that the bae is ....... instead of 10.
(a) 2
(b) 4
(c) 8
(d) 16
Q.24: A compiler........
(a) is a computer programme
(b) translates a high level language into machine language
(c) is a part of software
(d) None of these
Q.25: ........... .in computer talk is a step in technology.
(a) Creation
(b) Manufacturing
(c) Generation
(d) None of these
184
Q.26: A storage unit of a computer system is ranked according

to the ........ .
(a) Access time
(b) Storage capacity
(c) Cost per bit of storage
(d) subs tractive
Q.27: The storage capacity is defined in terms of ....... .
(a) Bytes
(b) Bit
(c) Bits
(d) None of these
Q.28: To speed up the rate of information transfer, the computer
uses a number of special memory unit called ....... .
(a) Chip
(b) Register
(c) Trangitor
(d) None of these
Q.29: ............... holds the address of the active memory location
(a) MAR
(b) MBR
(c) PC
(d) LU
Q.30: Data is coded on paper tape in the form of punched hole
combination in ...... .
(a) Punch Paper Tape
(b) Punch Card
(c) Card Reader
(d) None of these
Q.31: Floppy disk are typically in inches ......... .
(a) 3
(b) 5.25
(c) 8
(d) All of these
Q.32: The ........ .is plugged in between the CPU and the main
memory.
185
(a) Primary Memory

(b) Cache Memory
(c) Secondary Memory
(d) Register
Q.33: ......... printers print each character as a patter of dots.
(a) Ink-Jet
(b) Laser
(c) Dot-Matrix
(d) None of these
Q.34: .......... .is basically input device that are capable of
recognising marks or characters.
(a) Keyboard
(b) Light Pen
(c) Scanner
(d) None of these
Q.35: These scanners are capableof recognising a prespecified
type of mark made by pencil or pen.
(a) OMR
(b) MOR
(c) CMR
(d) None of these
Q.36: Data coded in the form of light and dark lines or bars are
known as ........ .
(a) Bar Codes
(b) Bar Line
(c) Line Codes
(d) None of these
Q.37: A ...... .is an output device used to produce hard copies of
graphs and designs.
(a) Printer
(b) Plotter
(c) Scanner
(d) None of these
Q.38: Sequence of instructions written ina language that can be
understood by a computer is called a ........ .
186
(a) Progrannnne
(b) Software
(c) Instruction
(d) None of these
Q.39: Connputer software is nornnally classified into two broad
categories - Application software and ......... .
(a) Systenn software
(b) Progrannnne software
(c) Connputer software
(d) None of these
Q.40: .......... translates the instructions of a high level language
into nnachine language.
(a) Translator
(b) Connpiler
(c) Interpreter
(d) None of these
Q.41: A progrannnne written by a progrannnner in a high level
language is called ....... .
(a) Object progrannnne
(b) Source progrannnne
(c) Connpile progrannnne
(d) None of these
Q.42: A connpiler cannot diagnose ........... errors.
(a) Logical
(b) Syntax
(c) LOgical & Syntax
(d) None of these
Q.43: The interface between user and hardware of connputer is
called........ .
(a) Interpreter
(b) Operating systenn
(c) GUI
(d) None of these
Q.44: The total volunne of work perfornned by the systenn over a
given period of tinne is called ...... .
187
(a) Throughput
(b) Turnaround time
(c) Efficiency
(d) None of these
Q.45: ................ is also known as serial, sequential, off line or
stacked job processing.
(a) Batch processing
(b) Serial processing
(c) Both (a) & (b)
(d) None of these
Q.46: ...... .is the name given to the interleaved execution of two
or more different and independent programmes by the same
computer.
(a) Multiprogramming
(b) Multiprocessing
(c) Batch processing
(d) None of these
Q.47: The operation of transferring programmes from the main
memory to the disk storage and back is known as ....... .
(a) Swapping
(b) Transferring
(c) Both (a) & (b)
(d) None of these
Q.48: SPOOLING stands for ....
(a) Simultaneous Peripheral Output On Line
(b) Simultaneous Peripheral Output Off Line
(c) Single Peripheral Output On Line
(d) Single Peripheral Output Off Line
Q.49: The term ......... is used to describe inter connected computer
configuration or computers with two or more independent
CPUs that have the ability to simultaneously execute.
(a) Multiprogramming
(b) Multiprocessing
(c) Batch processing
(d) None of these
188
Q.50: Swapping process sometimes known as ...... ..

(a) Roll-in Roll-out
(b) Come-in Come-out
(c) Swap-in Swap-out
(d) None of these
(Unit-l)
Ans.l: All of these
Ans.2: 8 bits
Ans.3: 64 KB &256 KB
Ans.4: Software
Ans.5: Processor
Ans.6: Mouse
Ans.7: Touch screen
Ans.8: CDROM
Ans.9: Laser
Ans.l0: Hard Disk
Ans.ll: All of these
Ans.12: CPU
Ans.13: Random Access Memory
Ans.14: Software
Ans.15: CPU
Ans.16: Mouse
Ans.17: ALU
Ans.18: IC
Ans.19: Very Large Scale Integration
Ans.21: Inputting
Ans.22: Bit
Ans.23: 2
Ans.24: Translates a high level language into machine language
Ans.25: Generation
Ans.27: Bit
Ans.28: Register
Ans.29: MAR
189
Ans.30: Punch Paper Tape

Ans.32: Cache memory
Ans.33: Dot-Matrix
Ans.34: Scanner
Ans.35: OMR
Ans.36: Bar Codes
Ans.37: Plotter
Ans.38: Programme
Ans.39: System software
Ans.40: Compiler
Ans.41: Source programme
Ans.42: Logical
Ans.43: Operating system
Ans.44: Throughput
Ans.45: Batch processing
Ans.46: Multiprocessing
Ans.47: Swapping
Ans.48: Simultaneous Peripheral Output On Line
Ans.49: Multiprocessing
Ans.50: Roll-in roll-out
190
(Unit-2)
Q.l: Which extention is given to Word document by default?
(a) .EXT
(b) .COM
(c) .DOC
(d) None
Q.2: Mark the most appropriate option statement... ....
(a) Mail Merge can be used to print the form letters
(b) Mail Merge can be used to print the form letters and
mailing labels
(c) Mail Merge can be used to print envelopes
(d) All of the above.
Q.3: What term is used for the word processing programmes
that show you directly on the PC screen the appearance of
your final document as you might expect on the paper ..... .
(a) Search & Replace
(b) Pagination
(c) Soft Copy
(d) WYSIWYG
Q.4: Creating form letters using Mail Merge involves ........ .
(a) Creating the main document
(b) Creating the main documents & data source
(c) Inserting merge fields in the main document and
merging the main document with data source
(d) Both (b) & (c)
Q.5: Which of the following gives the status of your document
like page numbers, number of pages.
(a) Status bar
(b) Standard toolbar
(c) Formatting toolbar
(d) None of these
Q.6: Alignment buttons are available on the ...... toolbar.
191
(a) Status bar

(b) Standard toolbar
(c) Formatting toolbar
(d) None of these
Q.7: Header is ............. .
(a) Any text printed at the top of every page.
(b) Any graphics printed at teh top of every page.
(c) Any text or graphics printed at the top of a particular
page.
(d) Any text or graphics printed at the top of every page.
Q.8: ......... case converts first character of first word of selected
sentence to capital.
(a) Sentence
(b) Lower
(c) Toggle
(d) Title
Q.9: Which of the following is not an option of Edit Menu?
(a) Cut
(b) Copy
(c) Paste
(d) Page Setup
Q.I0: Which of the following will you opt for saving a file.
(a) Save button on standard toolbar
(b) Save option from File Menu
(c) Pressing Ctrl + S
(d) Any of the above
Q.ll: A spreadsheet is made up of... .....
(a) Columns
(b) rows
(c) and their intersections (cells)
(d) Above all
Q.12: In each cell there may be the following types of data ........
(a) Text only
(b) Number data only
(c) Above all
192
(d) Formulas only

Q.13: The BAR chart is usually used to display ......
(a) A change over a time period
(b) A change over a width of cell
(c) A change over a formula
(d) None
Q.:14 Count function is used to ...... .
(a) To count all entries except blank entries
(b) Only numbers
(c) Only text
(d) Only blank
Q.15: IF function checks
(a) The logical condition and rtum a value
(b) Does not check logical condition
(c) The logical condition but does not return any value
(d) None
Q.16: Fill down function is used to ..... .
(a) Fullfill the need of same formula
(b) Fullfill the need of different formula
(c) Bolth
(d) None
Q.17: The advantage of using a spread sheet is ........ .
(a) Calculations can be done automatically
(b) Changing data automatically updates calculations
(c) More flexibility
Q.18: The intersectin of a row and column is called ........ .
(a) Data
(b) a field
(c) a cell
(d) an equation
Q.19: When you are typing an equation into a cell the first thing
that must be entered is ......... .
(a) The first all referrenced
(b) Parenthesis
193
(c) Quotation marks

(d) an equal sign
Q.20: Labels are used in a spreadsheet to ......... .
(a) Tell the computer what we are doing
(b) Help us identify the information of cell
(c) Do the calculations
(d) Set up the equations
Q.21: The cell labelled F5 refers to ......... .
(a) Row F Column 5
(b) Column F Row 5
(c) Functions available in cells
(d) Function key F4
Q.22: There are 3 types of data found in a spreadsheet......... .
(a) data, words, numbers
(b) equations, data, numbers
(c) words, numbers, labels
(d) numbers, formulas, labels
Q.23: A constant is another name of this type of data ...... .
(a) Number
(b) Equation
(c) Formula
(d) Description
Q.24: Cell Address A4 in a formula means it is a ...... .
(a) Mixed cell reference
(b) Absolute cell reference
(c) Relative cell reference
(d) None of above
Q.25: Cell Address $A $4 in a formula means it is a ......... .
(d) Above all
Q.26: Cell Address $ A4 in a formula means it is a ........ .
194

(d) Above all
Q.27: Cell Address A$4 in a formula means it is a ....... .
(d) Above all
Q.28: Computer based record keeping system is known as ....... .
(a) CRKS
(b) DBMS
(c) DMS
(d) All of these
Q.29: Duplication of data is known as ..... .
(a) Data redundancy
(b) Data repentance
(c) Data inconsistency
(d) None of these
Q.30: Multiple copies of same data that mismatch, are known
as ..... .
(a) Data redundancy
(b) Data repentance
(c) Data inconsistency
(d) None
Q.31: A storage container storing data pertaining to simple
object, subject or purpose is known as ..... .
(a) Table
(b) Query
(c) Report
(d) Form
Q.32: A field that uniquely identifies records in the table is ...... .
(a) Primary key
(b) Candidate key
(c) Unique key
(d) Special key
Q.33: A statement that gives you filtered data according to your
195
conditions and specifications is called ...... .

(a) Table
(b) Query
(c) Report
(d) Form
Q.34: An interface is user-defined layout that lets users view,
enter or change data in tables ........ .
(a) Table
(b) Query
(c) Report
(d) Form
Q.35: A formal presentable printed document that lists data in
formatted way is known as ........ .
(a) Table
(b) Query
(c) Report
(d) Form
Q.36: The collection of fields which represent a complete unit of
information is called as ...
(a) Field
(b) Record
(c) Table
(d) None of these
Q.37: The ...... operator lets you define criteria for which records
must meet one condition or another, but not necessarily
both ...... .
(a) And
(b) Not
(c) Or
(d) None
Q.38: Which one of the following is used as wild cards?
(a) *
(b) ?
(c) $
(d) Both (a) & (b)
196
~omputer Applications
Q.39: ............ query delets a group of records from one or more

tables.
(a) Delete query
(b) Update query
(c) Append query
(d) Make table query
Q.40: A ............ .is a formal, presentable, printed document that
lists data in a formatted manner.
(a) Form
(b) Query
(c) Table
(d) Report
Q.41: The value of primary key ......... .
(a) Cannot be null
(b) Can be null
(c) Can be duplicate
(d) None of these
Q.42: Which of the following is not an Access Operator?
(a) Arithmetic
(b) Logical
(c) Relational
(d) Comparison
Q.43: The following is/ are type of relationship in Access.
(a) One to one
(b) One to many
(c) Both of above
(d) None of above
Q.44: Which of the following is not an action query?
(a) Delete
(b) Update
(c) Append
(d) Select
Q.45: OLE means ........ ..
(a) Object Linking and Embedding
(b) Object Line Erasing
197
(c) Object Linking Expert

(d) Object Linking and Extension
Q.46: Which file format can be added to a Power Point Show?
(a) .jpg
(b) .giv
(c) .wav
(d) All of above
Q.47: In MS Power Point two kind of sound effects files that can
be added to the presentation are ........ .
(a) .wav files and .mid files
(b) .wav files and .gif files
(c) .wav files and .jpg files
(d) .jpg files and .gif files
Q.48: Material consisting of text and number is best presented
as ...
(a) A table slide
(b) A bullet slide
(c) A title slide
(d) Above all
Q.49: What is a motion path?
(a) A type of animation entrance effect
(b) A method of advancing slides
(c) A method of moving items on a slide
(d) Above all
Q.50: What is the slide-title master pair?
(a) The title area and text area of a specific slide
(b) A slide master and title master merged into a single
slide
(c) A slide master and title master for a specific design
template
(d) Above all
Q.51: To exit the Power Point... ...... .
(a) Click the application minimize button
(b) Click the document close button
(c) Double click the application control menu icon
(d) Double click the document control menu icon
198
Q.52: To select one hyperlink after another during a slide

presentation, what do you press?
(a) Tabl
(b) Ctrl+k
(c) Ctrl+h
(d) Above all
Q.53: Database is an....... .
(a) Integrated collection of related files
(b) Isolated collection of related data
(c) Integrated collection of non-related files
(d) None
Q.54: In Hierarchical Data Model the restriction is that.. .....
(a) A child can have only one parent
(b) Parent can have only one child
(c) A child can not have only one parent
(d) None
Q.55: Network Data Model represents ......
(a) One to many relationship
(b) Many to one relationship
(c) Many to many relationship
(d) None
Q.56: The relational model was proposed by Dr. Ted Codd
in .........
(a) 1960
(b) 1970
(c) 1975
(d) 1972
Q.57: A row in a relation is also called as .......
(a) Attribute
(b) Entity
(c) Tuple
(d) Domain
Q.58: The select operation is represented by the character (a
Greek letter) ..........
(a) ~
(b) (j
199
(c) y
(d) E
Q.59: The project operation is represented by the character ........ .
(a) L
(b) cr
(c) 7t
(d) E
Q.60: Natural join operation is represented by the character ......... .
(a) cr
(b) L
(c) A
(d) None
Q.61: In the first normal form there should be ........ .
(a) Only one value at every intersection of a tuple and a
column of the relation.
(b) Many value at every intersection ofa tuple and a
column of the relation.
(c) No value at every intersection of a tuple and a column
of the relation
(d) All of above
Q.62: The DBMS uses a DOL compiler to compile the various
data definitions in the form of a ......... .
(a) Attribute
(b) Data Dictionry
(c) Entity
(d) Language
Q.63: Data Dictionary is also called as ..... .
(a) Meta Data
(b) Keys
(c) Entity
(d) Attributes
(Unit-2)
Ans.l: .DOC
200
Ans.3: WYSIWYG
Ans.4: Both (b) & (c)
Ans.5: Status bar
Ans.6: Formatting toolbar
Ans.7: Any text or graphics printed at the top of every page
Ans.8: Sentence
Ans.9: Page Setup
Ans.10: Any of the above
Ans.ll: Above all
Ans.12: Above all
Ans.13: a change over a time period
Ans.14: To count all entries except blank entries
Ans.15: The logical condition and return a value
Ans.16: Fulfill the need of same formula
Ans.18: A cell
Ans.19: An equal sign
Ans.20: Help us identify the information of cell
Ans.2l: Column F Row 5
Ans.22: Data, words, numbers
Ans.23: Number
Ans.24: Relative cell reference
Ans.25: Absolute cell reference
Ans.26: Mixed cell reference
Ans.27: Mixed cell reference
Ans.28: DBMS
Ans.29: Data Redundancy
Ans.30: Data inconsistency
Ans.3l: Table
Ans.32: Primry key
Ans.33: Query
Ans.34: Query
Ans.35: Report
Ans.36: Record
Ans.37: Or
Ans.39: Delete query
201
Ans.40: Report
Ans.41: Cannot be a null
Ans.42: Arithmetic
Ans.43: Both of above
Ans.44: Select
Ans.45: Object Linking and Embedding
Ans.46: All of above
Ans.47: .way filesa nd .mid files
Ans.48: A table slide .
Ans.49: A method of moving items on a slide
Ans.50: A slide master and title master for a specific design
template.
Ans.51: Double click the applications control menu icon
Ans.52: Tab
Ans.53: Integrated collection of related files
Ans.54: A child can have only one parent
Ans.55: Many to many relationship
Ans.56: 1970
Ans57: Tuple
Ans58: (J
Ans.59: 1t
Ans.60: None
Ans.61: Only one value at every intersection of a tuple and a
column of the relation
Ans.62: Data dictionary
Ans.63: Meta Data
202
(Unit-3)
Q.l: Computer network allows users to share and transfer
information using ...... .
(a) Cables or modem
(b) Cables or switches
(c) Buses
(d) None
Q.2: ARPA stands for ......... .
(a) Aeronautics Research Project Agency
(b) Advance Reserach Projects Agency
(c) Advance Research Planning Application
(d) None of these
Q.3: Who had designed ARPANET ........ .
(a) CRPA
(b) ARPA
(c) IBM
(d) CORBA
Q.4: PAN is a kind of Network. ....... .
(a) Yes
(b) No
(c) Both
(d) Not confirmed
Q.5: PAN is stand for ........ .
(a) People Area Network
(b) Planet Area Network
(c) Personal Area Network
(d) None of these
Q.6: Wireless LAN technology uses ..... .
(a) Radio waves or infrared signals
(b) X-Rays
(c) Altrasonic waves
(d) None of these
Q.7: Repeaterr is used to ...... .
203
(a) Receives a signal and retransmit it at a higher power

level.
(b) Send a signal and retransmit it at higher power level.
(c) Both
(d) None
Q.8: Network Topology is study of..... .
(a) Arrangement or mapping of the elements of a network
(b) Transmission of data packets
(c) Lining of computer
(d) None of these
Q.9: LAN Network Topology is technically a part of...... .
(a) Physical Theory
(b) Graph Theory
(c) Set Theory
(d) None
Q.I0: Point-to-pointtopology is the basic model oL ..... .
(a) Graph Theory
(b) Cacaphony
(c) Conventional Telephony
(d) None of these
Q.ll: A special kind of mesh, limiting the number of hops
between two nodes is a ..... .
(a) Eathernet
(b) Hypercube
(c) Forks
(d) None
Q.12: A multidimensional ring has a ....... .
(a) Hierarchy
(b) Bus Topology
(c) Toroidal Topology
(d) None
Q.13: A STAR ring network eonsists of two or more star
topologies connected using a ......... .
(a) MultistationAccess Unit (MAU) as a centralized hub.
(b) MAC as a centralized hub
204
(c) Grid network as a centralized hub

(d) None
Q.14: CSMA stands for
(a) Carrier Sense Motherboard Access
(b) Carrier Sense Multiple Access
(c) Carrier Sense Multiple Application
(d) None
Q.15: A true bus Network is ......... .
(a) Passive
(b) Active
(c) (a) & (b) both
(d) None
Q.16: In bus Topology if there is a problem with the cable...... .
(a) The entire network goes down
(b) The entire network will not be affected
(c) Only the same wire will be affected
(d) None of these
Q.17: Which cable is best for larger network. .....
(a) Thin coax and 10 BaseT both
(b) Thin Coax backbone
(c) 10 BaseT
(d) None
Q.18: Which cable is best for small network. .....
(a) Thin Coax and 10 BaseT both
(b) 10 BaseT
(c) Thin Coax
(d) None
Q.19: Network adapter card is also known as ...... .
(a) NIC
(b) MAC
(c) Hub
(d) None
Q.20: Hub is a device used to ...... .
(a) Gather groups of PCs together at a central location
(b) Gather information at a central location
(c) Both (a) & (b)
205
(d) None
Q.21: Which device allows all of the faster connections to remain
at the higher speed.
(a) Modem
(b) Switching hub
(c) NIC
(d) None
Q.22: The purpoe of TELNET is to provide ....... .
(a) A fairly general, bi-directional, eight-bit byte oriented
communication faCility
(b) The request to the server
(c) Access to the clients
(d) None
Q.23: A TELNET is a ...... .
(a) HTIP
(b) File Transfer Protocol
(c) Transmission Control Protocol (TCP)
(d) None
Q.24: A TELNET connection through the Network is
intrinsically........ .
(a) Half duelex
(b) Full-duplex
(c) Both
(d) None
Q.25: Since many systems take some processing action at the
end of each input line, so the transmission should be trigered
at. ........ .
(a) Beginning of the line
(b) At the end of the line
(c) At mid of the line
(d) None
Q.26: The various devices in a network are connected through a
(a) Network Interface CArd (NIC)

(b) Buses
(c) FTP
206
(d) Software
Q.27: Programmes and data files can be stored in a central
location on a ......
(a) Computer
(b) Server
(c) Intranet
(d) LAN
Q.28: Which makes up a computer network ......
(a) Hardware
(b) Software
(c) Both (a) & (b)
(d) None
Q.29: A ssytem that is used to backup and archive files onthe
network .....
(a) File Server
(b) Database Server
(c) Archive Server
(d) Print Server
Q.30: A Server which stores and retrieves files .......
(a) Archive Server
(b) Print Server
(c) File Server
(d) Database Server
Q.31: A system that schedules print jobs sent by users on the
network....
(a) Database Server
(b) Print Server
(c) Archive Server
(d) None
Q.32: A server that handles user database requests and
responses .........
(a) Archive Server
(b) Print Server
(c) File Server
(d) Database Server
207
Q.33: Workgroups and Domains are two prevalent modes of

grouping networked computers in......... .
(a) Window XP
(b) Windows 98
(c) Window NT
(d) None
Q.34: In the domain model one of the computers on the network
is configured as the central server that runs Windows NT
server and is called ......... .
(a) Primary Domain Controller (PDC)
(b) Secondary Domain Controller (SDC)
(c) Backup Domain Controller (BDC)
(d) None
Q.35: Plug-in-Play feature allows ....... .
(a) Automatic detection and configuration of any new
hardware installed on the machine
(b) Automatic detection and configuration of any software
of system
(c) Detection of the performance of the system
(d) Above all
Q.36: Shared permissions are the only way to secure resources
ina .....
(a) NTFS file system
(b) FAT file system
(c) (a) & (b) both
(d) None
Q.37: NTFS permission can be assigned only on a partition that
has been formatted using the ..... .
(a) FAT file system
(b) NTFS file system
(c) Both
(d) None
Q.38: A Web Brower is a software application that provides ....... .
(a) A graphical view of the Internet
(b) Command line view of the Internet
(c) Only text view of the Internet
208
(d) None
Q.39: The Address bar indicates the location of the Web page
currently displayed in thecontent window. This location is
known as ..... .
(a) ERP
(b) URL
(c) ARPA
(d) FrP
Q.40: Internet mail server is a server that stores all your mails
sent via a ........ .
(a) e-mail address
(b) FTP
(c) TCP/ip
(d) Website
Q.41: A company that provides access to the Internet is known
as .....
(a) ISP
(b) A~P
(c) lAP
(d) None
Q.42: Internet Access Provider (lAP) provides access to the
tnternet by providing dial-up access through......... .
(a) Modem and PPP connection or other devices like cable
modems or wireless connection
(b) Only PPP connections
(c) Only Modems
(d) None
Q.43: VPN stands for ......... .
(a) Vast Private Network
(b) Virtual Private Network
(c) Very Pure Network
(d) None
Q.44: In the dial-up networking, to connect to the Internet which
protocol is needed ...... .
(a) SMTP
(b) FrP
209
(c) TCP/ip
(d) None
Q.45: Which programme provides a way to look at, read and
even hear all the information on the World Wide Web ...... .
(a) TCP/IP
(b) URL
(c) Browser
(d) Web Server
Q.46: The first Web browser with a graphical user interface was
(a) Internet exploler

(b) Mosaic
(c) Netscape
(d) None
Q.47: A protocol is ....... .
(a) A set of computers used in a network
(b) A set of rules computers use to talk to each other
(c) A set of networks
(d) None
Q.48: The range of frequencies that a medium can pass is
called ..... .
(a) Frequencyspectrum
(b) Bandwidth
(c) Composite signal
(d) None
Q.49: Sine Wave is the most fundamental form of a ..... .
(a) Peak Samplitude
(b) Digital signals
(c) Periodic analog signal
(d) None
Q.50: When a signal, simple or composite, travels through a
medium, it losses some of its energy its known as ......... .
(a) Harmonization
(b) Attenuation
(c) Distortion
(d) Noise
210
Q.5l: Modem stands for ........ .

(a) Molecular / Demolecuar
(b) Modulator/Demodulator
(c) Both
(d) None
Q.52: FIP (File Transfer Protocol) uses the services of..... .
(a) IP
(b) TCP
(c) FAT
(d) NTFS
Q.53: FIP uses two well-known TCP ports ......... .
(a) Port 16 & Port 15
(b) Port 21 and Port 20
(c) Port 10 & Port 9
(d) Port 14 and Port 12
Q.54: FIP uses TCP Port - Port 21 for ........ .
(a) The data connection
(b) Network connection
(c) The control connection
(d) Both (a) & (b)
Q.55: FIP uses TCP Port - Port 20 for ....... .
(a) The control connection
(b) Network connection
(c) The data connection
(d) Both (a) & (b)
Q.56: Gateway used to ....... .
(a) Connect two seperate networks of different protocols
(b) Connect two connected networks of different protocols
(c) Connect two separate networks of some protocols
(d) Above all
(Unit-3)
Ans.l: Cables or modem
Ans.2: Advance Research Projects Agency
Ans.3: ARPA
211
Ans.4: Yes
Ans.5: Personal Area Network
Ans.6: Radio waves or infrared signals
Ans.7: Receive a signal and retransmit it at a higher power
level
Ans.8: Arrangement or mapping of the elements of a network
Ans.9: Graph Theory
Ans.l0: Conventional Telephony
Ans.ll: Hypercube
Ans.12: Toroidal Topology
Ans.13: Multistation Access Unit (MOU) as a centralized hub
Ans.14: Carrier Sense Multiple Access
Ans.15: Passive
Ans.16: The entire network goes down
Ans.17: Thin Coax backbone
Ans.18: 10 BaseT
Ans.19: NIC
Ans.20: Gather groups of PCs together at a central location
Ans.21: Switching hub
Ans.22: A fairly general, bi-directinoal, eight-bit byte oriented
communication facility
Ans.23: Transmission Control Protocol (TCP)
Ans.24: Full-duplex
Ans.25: At the end of the line
Ans.26: Network Interface Card (NIq
Ans.27: Server
Ans.29: Archive Server
Ans.30: File Server
Ans.31: Print Server
Ans.32: Database Server
Ans.33: Window NT
Ans.34: Primary Domain Controller (PDq
Ans.35: Automatic detection and configuration of any new
hardware installed on the machine
Ans.36: FAT file system
Ans.37: NTFS file system
212
Ans.38: A graphical view of the Internet

Ans.39: URL
Ans.40: Website
Ans.41: ISP
Ans.42: Modem and PPP connection or other devices like cable
modems or wireless connection
Ans.43: Virtual Private Network
Ans.44: TCPlIP
Ans.45: Browser
Ans.46: Mosaic
Ans.47: A set of rules computers use to talk to each other
Ans.48: Bandwidth
Ans.49: Periodic analog signal
Ans.50: Attenuation
Ans.51: ModulatorI demodulator
Ans.52: TCP
Ans.53: Port 21 and Port 20
Ans.54: The control connection
Ans.55: The data connection
Ans.56: Connect two seperate networks of different protocols
213
(Unit-4)
Q.l: Commerce conducted via an electronic medium is called ...... .
(a) P-commerce
(b) e-commerce
(c) c-commerce
(d) None
Q.2: E-Commerce is also known as ........ .
(a) e-business, e-tailing an I-commerce
(b) e-market, e-purchasing and J-commerce
(c) e-business, I-tailing and d-commerce
(d) None
Q.3: E-commerce is a new form of corporate operations known
as ..... .
(a) Original Company
(b) Virtual Company
(c) Market
(d) None
Q.4: All e-commerce applications follow the ....... .
(a) Network layer model
(b) Client-server model
(c) RDBMS model
(d) None
Q.5: Multimedia Superhighway is known as ....... .
(a) e-way
(b) I-way
(c) Electronic way
(d) None
Q.6: e-commerce has sectors that are ......... .
(a) B2B, C2C, B2C, etc.
(b) D2B, C2D, B2D
(c) C2B, C2D, B2B
(d) None
Q.7: Sites that proce&s transactions for consumers normally
214
handled in person, by phone or mail are .......

(a) Business men
(b) Product launcher
(c) Company
(d) Transaction Brokers
Q.8: e-tailer sell products online, service providers offer
services ....
(a) Via telephone
(b) Via market
(c) Online
(d) None
Q.9: Model to create digital electronic environment for buyers
and sellers to meet, agree on a price, and transact is ......
(a) e bay's auction business Model
(b) e-commerce
(c) c-commerce
(d) None
Q.IO: Sites, that create a digital online environment where people
with similar interests can transact, communicate with like-
minded people, receive interest-related information, are ......
(a) e-distributors
(b) Community providers
(c) Service provider
(d) None
Q.ll: Companies that supply products and services directly to
individual businesses are .........
(a) Product manufacturers
(b) e-distributors
(c) Matchmaker
(d) None
Q.12: Companies that make money by linking other businesses
and taking a cut of any business that occurs via a transaction
or usage fee are called .........
(a) Infomediary
(b) Matchmaker
(c) e-distributor
215
(d) Above all

Q.13: M-Commerce is short form of......... .
(a) Multiple commerce
(b) Meta commerce
(c) Mobile commerce
(d) None
Q.14: The nature of the players in an industry and their relative
bargaining power is known as ......
(a) Industry structure
(b) Virtual company
(c) e-distributors
(d) Matchmaker
Q.15: A firm value chain is the set of.. .........
(a) Activities a firm engages in to create final products
from raw inuts
(b) Activities a company to manufacture raw material
(c) Both (a) & (b)
(d) None
Q.16: B2B Hub is also known as ..........
(a) e-distributor
(b) Marketplace/Exchange
(c) Service provider
(d) None
Q.17: IP - Telephony is a general term for the technologies that
use the ..........
(a) VOIP (Voice Over Internet Protocol)
(b) I-way
(c) FTP
(d) TCP/IP
Q.18: Which ensures that information transmissins are
encrypted ...... .
(a) DSL
(b) SSL
(c) ADCL
(d) None
216
Q.19: Programme that enables work to be done remotely ..... .

(a) Telnet
(b) SSL
(c) HTTP
(d) Ping
Q.20: Which thing lets you track the route a message takes from
a client to a remote computer......... .
(a) SMTP
(b) Tracert
(c) FTP
(d) None
Q.21: Which utility programme that allows users to verify a
connection between client and server ..... .
(a) TCP/IP
(b) HTTP
(c) Ping
(d) None
Q.22: What is Kerberos?
(a) It is a popular third party authentication protocol
(b) It is connection technology
(c) Both (a) & (b)
(d) None
Q.23: What is transparency?
(a) It implies that users should be unaware that they are
accessingmultiple systems
(b) It implies that users should be aware that they are
accessing single systems
(c) Both (a) & (b)
(d) None
Q.24: A hypermedia system is made of........ .
(a) Nodes & Links
(b) Buses
(c) Routers
(d) None
Q.25: I-way is ........ .
(a) Information Superhighway
217
(b) Internet highway

(c) Both (a) & (b)
(d) None .
(Vnit-4)
Ans.l: e-commerce
Ans.2: e-business, e-tailing and I-commerce
Ans.3: Virtual company
Ans.4: Client-Server Model
Ans.5: I-way
Ans.6: B2B, C2C, B2C, etc.
Ans.7: Transaction brokers
Ans.8: Online
Ans.9: e bay's auction business model
Ans.l0: Community providers
Ans.ll: e-distributors
Ans.12: Matchmaker
Ans.13: Mobile commerce
Ans.14: Industry structure ,
Ans.15: Activities a firm engages in to create final products
from raw inputs
Ans.16: Marketplace/ exchange
Ans.17: VOIP (Voice Over internet Protocol)
Ans.18: SSL
Ans.19: Telnet
Ans.20: Tracert
Ans.21: Ping
Ans.22: It is a popular third party authentication protocol
Ans.23: It implies that users should be unaware that they are
accessing multiple systems
Ans.24: Nodes & Links
Ans.25: Information Superhighway
218
Chapter 8
Business Communication
(Unit-l)
Q.l: Talking to oneself is .................... .
(a) Interpersonal
(b) Intrapersonal
(c) Oneself talking
(d) Entrepersonal
Q.2: When more than two people communicate it is called ...... .
(a) Interpersonal
(b) Mass
(c) Group
Q.3: Sender gives information, receiver sends a feedback this
feature is called ................. .
(a) Two way process
(b) Circular flow
(c) Understanding
(d) Goal oriented
Q.4: Encoding is converting......... to ........... .
(a) Symbols to mental image
(b) Mental image to words
(c) Words to symbols
(d) Mental image to symbols
Q.5: Communication comes from the Latin word ............. .
(a) Communicus
(b) Communicate
(c) None of the above
(d) Communicare
Q.6: Message is only complete when it is ........ .
(a) Spoken
219
(b) Shared
(c) Understood
Q.7: When there is one sender and infinite receiver it is called ........
communication.
(a) Group
(b) Mass
(c) Downward
(d) Upward
Q.8: Goal oriented means that communication always has some
(a) Purpose
(b) Desire
(d) Both (a) & (b)
Q.9: Loud music in marriage is what kind of barrier ............ .
(a) Language barrier
(b) Noise barrier
(c) Music barrier
(d) Poor listening
Q.I0: If a speaker comes unprepared for a lecture, what barrier
will take place?
(a) Understanding barrier
(b) Lack of planning barrier
(c) Poor communication barrier
(d) Lack of preparing barrier
Q.ll: If I am not able to explain a meaning of a sentence properly
to my class which barrier takes place?
(a) Semantic barrier
(b) Lack of planning barrier
(c) Poor communication barrier
(d) Lack of preparing barrier
Q.12: ...... communication is more rapid than formal
communication
(a) Rumour
(b) Gossip
220
(c) Informal communication

Q.13: What are the various types of formal communication?
(a) Upward & downward
(b) Upward, downward, vertical
(c) Vertical & lateral
Q.14: Whenever we make the use of words it is ........... .
(a) Non-verbal
(b) Oral
(c) Aural
(d) Verbal
Q.15: The path or channel through which informal
communication flows is called .................... .
(a) Grapevine
(b) Verbal Non-verbal
(c) Downward & Lateral
(d) Upward
Q.16: The untrue part of informal communication is called ......... .
(a) Gossip
(b) Rumour
(c) Grapevine
Q.17: ........ .is more reliable than informal communication.
(a) Upward
(b) Downward
(c) Lateral
Q.18: When a boss gives us a command it is a form of
......... communication.
(a) Downward
(b) Upward
(c) Lateral
(d) Horizontal
Q.19: Meaning of clarity is .......... .
(a) Clean
221
(b) Clear
(c) Brief
Q.20: If you say thank you, sorry, etc. then you are following
which of the 7Cs of communication..... .
(a) Concise
(b) Compliment
(c) Correct
(Unit-l)
Ans.l: Intrapersonal
Ans.2: Group
Ans.3: Circular flow
Ans.4: Mental image to symbols
Ans.5: Communicare
Ans.6: Understood
Ans.7: Mass
Ans.8: Purpose
Ans.9: Noise barrier
Ans.l0: Lack of planning barrier
Ans.ll: Semantic barrier
Ans.12: Informal communication
Ans.14: Verbal
Ans.15: Grapevine
Ans.16: Rumour
Ans.18: Downward
Ans.19: Clear
222
(Unit-2)
Q.l: When words are spoken it is called ......... communication.
(a) Oral
(b) Aural
(c) Written
(d) Speaking
Q.2: Two sides of effective communication are ....... & ........
(a) Listening & Presentation
(b) Reading & Writing
(d) Both of the above
Q.3: For records you should do ....... communication.
(a) Aural
(b) Oral
(c) Mail
Q.4: The opposite of the word concrete in communication is ......
(a) Solid
(b) Abstract
(c) Both (a) & (b)
Q.5: Horns are examples of ........... communication.
(a) Written
(b) Oral
(c) Verbal
(d) Aural
Q.6: The four C's of writing are .................. .
(a) Correct, concise, clarity, courtesy
(b) Concise, correct, completeness, clarity
(d) Correct, concise, complete, courtesy
Q.7: Stars & Moon are example of ....... communication.
(a) Oral
223
(b) Aural
(c) Visual
Q.8: Which of the follOwing word is concrete -
(a) Beautiful
(b) Small amount
(c) Intelligent
(d) Indica cars
Q.9: You should use ......... words in your CV.
(a) Simple
(b) Difficult
(c) Technical
(d) Common
Q.I0: Your sentence should be on an average upto ........ words.
(a) 20
(b) 21
(c) 22
(d) 25
Q.ll: Eye contact shows your ......... & ........ to the listener.
(a) Confidence & Interest
(b) Interest & Intelligence
(d) Confidence & Maturity
Q.12: The main idea for a paragraph are expressed in a
.......... sentence.
(a) Topic
(b) First
(c) Main
(d) Opening
Q.13: Appearance & layout are the ...... part of letter.
(a) Verbal
(b) Non-verbal
(c) Both (a) & (b)
Q.14: .......... communication is very effective.
224
(a) Visual
(b) Oral
(c) Aural
Q.15: Bells are examples of ....... comrnunication.
(a) Oral
(b) Non-verbal
(c) Aural
Q.16: Baby crying is an example of.......... communication.
(a) Oral
(b) Non-verbal
(c) Aural
Q.17: Which of the following is not a part of e-mail.
(a) CC
(b) Bee
(c) Attachment
Q.18: ........ communicationcan be ......... at receivers convenience.
(a) Listening & Presentation
(b) Written & read
(d) Both of the above
Q.19: ....... communication can be circulated.
(a) Written
(b) Informal
(c) Minutes
(d) Recorded
Q.20: ............... communication can be recheked.
(a) Written
(b) Informal
(c) Minutes
(d) Recorded
225
(Unit-2)
Ans.l: Oral communication.
Ans.2: Listening, presentation
Ans.3: None of above
Ans.4: Absract
Ans.5: Aural
Ans.6: Correct, concise, clarity, courtesy
Ans.7: Visual
Ans.8: Indica cars
Ans.9: Simple
Ans.l0: 20
Ans.ll: Confidence & Interest
Ans.12: Topic
Ans.13: Non-verbal
Ans.14: Oral
Ans.15: Aural
Ans.16: Aural
Ans.18: Written & read
Ans.19: Written
Ans.20: Written
226
(Unit-3)
Q.l: Memo has come from the Latin word ............... .
(a) Memorare
(b) Memorandum
(c) Memro
(d) Memodum
Q.2: Memo is written to persons within ........... .
(a) Office
(b) Organisation
(c) Department
Q.3: The name of the person for whom memo is written, is
written on the ........ of the page.
(a) Left side bottom
(b) Left side top
(c) Top
(d) Bottom
Q.4: Memo can be addressed to .......... individuals at a time.
(a) 1
(b) 2
(c) 3
(d) Many
Q.5: The analytical report is also called ...... report.
(a) Recommendatory
(b) Special
(c) Analysis
(d) External
Q.6: ............. .is given in letter to identify and find the copy of
letter easily in future.
(a) Subject
(b) Heading
(c) Salutation
(d) Reference number
227
Q.7: Date is on which a letter is .............. .

(a) Despatched
(b) Stamped
(c) Received
(d) Signed
Q.8: CC can be marked in emails and ..........
(a) Letter
(b) Circular
(c) Notice
Q.9: ........ .is added before the name of the receiver.
(a) Ms.
(b) Prefix
(c) Mr.
(d) Both (a) & (c)
Q.I0: The address of the receiver in a letter is called ......... address.
(a) Inside
(b) Receiver
(c) Subject
(d) Title
Q.ll: The word report is derived from the Latin word .......
(a) Reportare
(b) Reportaire
(c) Reportere
(d) Repordum
Q.12: A report is usually a piece of ...... writing based on ......
containing organized information on a particular topic.
(a) Logical, organized
(b) Factual, evidence
(c) Coherent, complete
(d) Correct, complete
Q.13: Precision gives .......... & ........... to your report.
(a) Logic & unity
(b) Conciseness & gravity
(c) Unity & coherence
228
Q.14: Reports which are prepared weekly, monthly etc. are

called ......... reports.
(a) Special
(b) Routine
(c) Annual
Q.15: Another name for abstract in element of report is .......
(a) Summary
(b) Synposis
(c) Bibiliography
(d) Introduction
Q.16: ......... orientation says it is necessary to keep in mind the
person (s) who is (are) going to read it.
(a) Reader
(b) Simplicity
(c) Writer
(d) Effective
Q.17: What types of case studies are there ...... & ......
(a) Thereotical & Factual
(b) Discussion & Debatable
(c) Oral & Written
Q.18: A case is a written account of ...... or ....... managerial
problems, delemmas, & situaitons calling for ............ .
(a) Simulated, real, solution
(b) Real, simulaed, solution
(c) Solution, real, simulated
Q.19: Synposis is ....... to ....... percent of your report.
(a) 5 to 10
(b) 3 to4
(c) StoB
(d) 2 to S
Q.20: Report is the only ......... product of the professional.
(a) Intangible
(b) Tangible
229
(c) Accurate
Q.21: Report reveals .........in thinking.
(a) Gap
(b) Maturity
(c) Expertise
(Unit-3)
Ans.l: Memorare
Ans.2: All of above
Ans.3: Lef side Bottom
Ans.4: Many
Ans.5: Recommendatory
Ans.6: Reference number
Ans.7: Despatched
Ans.8: Letter
Ans.9: Prefix
Ans.l0: Inside
Ans.11: Reportare
Ans.12: Factual, evidence
Ans.13: Unity & coherence
Ans.14: Routine
Ans.15: Synposis
Ans.16: Reader
Ans.17: Thereotical & Factual
Ans.18: Real, simulaed, solution
Ans.19: 2 to 5
Ans.20: Tangible
Ans.21: Gap
230
(Unit-4)
Q.l: Visual aids signal .......... from one part of the presentation
to the next.
(a) Transfer
(b) Transition
(c) Cut
(d) Copy
Q.2: Visual aids help ....... , ...... without depending on notes.
(a) Learn, Speech
(b) Learn, Ideas
(c) Present, Ideas
Q.3: The 3 major elements of presentation are ............... .
(a) Presenter, audience, specific content
(b) Visual aids, content, speech
(c) Power Point Present, speech, presenter
Q.4: More the number of audience more .......... will be your
presentation and lesser the numbere more ....... will be your
presentation.
(a) Formal & longer
(b) Shorter & concise
(c) Louder & slower
(d) Formal & informal
Q.5: Spoken words are epheral as soon as they come out of the
mouth they ......... .into air.
(a) Disappear
(b) Evaporate
(c) Fly
Q.6: ........ colours should be used in presentation.
(a) Bright
(b) Pastel
231
(c) Dull
(d) Professional
Q.7: .......... .is the most popular and effective method of
presentation.
(a) Manuscript
(b) Extemporaneous
(c) Impromptu
(d) Memorization
Q.8: In ........... there is no chance of tampering with the facts and
figures.
(a) Manuscript
(b) Extemporaneous
(c) Impromptu
(d) Memorization
Q.9: Having something to say is not enough you should also
know ........... to say it in presentation.
(a) When
(b) Where
(c) Whom
(d) How
Q.I0: People trust their .......... .less than their .......
(a) Ear, mouth
(b) Hands, ear
(c) Ears, eyes
Q.ll: ......... .from removing the aid before the audience has an
opportunity to observe it.
(a) Refrain
(b) Stop
(c) Quick
Q.12: Do not add multiple colours or exciting backdrops to your
slides in.......
(a) Power Point Presentation
(b) Flip charts
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(c) Blackboard
(d) Overhead Transparency
Q.13: Be familiar with the basic operations of .........., ....... which
you would use for your presentation.
(a) Electronic device
(b) Overhead Transparency
(c) Power Point
(d) Flip chart
Q.14: If at a formal dinner you are suddenly invitedto deliver a
vote of thanks it is ........ kind of presentation.
(a) Manuscript
(b) Extemporaneous
(c) Impromptu
(d) Memorization
Q.15: When presentation are read out it is called ............ ..
(a) Manuscript
(b) Extemporaneous
(c) Impromptu
(d) Memorization
Q.16: Speaker gets nervous if he forgets word, sentence or a
paragraph in .......... presentation.
(a) Manuscript
(b) Extern poraneous
(c) Impromptu
(d) Memorization
Q.17: Your personal appearance is a part of.. ........
(a) Paralangauge
(b) Kinesics
(c) Proxemics
(d) Chronemics
Q.18: Movement by hands, arms, and shoulders are called ..........
(a) Kinesics
(b) Proxemics
(c) Gestures
(d) Finecsics
233
Q.19: The study of body's physical movements is called ...... .

(a) Paralangauge
(b) Kinesics
(c) Proxemics
(d) Chronemics
Q.20: When the presentation is based on memory of an
individual it is called ...... .
(a) Paralangauge
(b) Memorization
(c) Impromptu
(d) Chronemics
(Unit-4)
Ans.l: Transition
Ans.2: Present, Ideas
Ans.3: Presenter, audience, specific content
Ans.4: Formal & informal
Ans.5: Evaporate
Ans.6: Bright
Ans.7: Extemporaneous
Ans.8: Manuscript
Ans.9: How
Ans.l0: Ears, eyes
Ans.ll: Refrain
Ans.12: Overhead Transparency
Ans.13: Electronic device
Ans.14: Impromptu
Ans.15: Manuscript
Ans.16: Memorization
Ans.17: Kinesics
Ans.18: Gestures
Ans.19: Kinesics
Ans.20: Memorization
234
Case Studies
Analysing Case Studies

The teachers of management have a variety of methods available
to them to teach students and clarify concepts in the classroom.
These include lecture, case study, group discussion, role play,
business games, projects case study, etc. The teacher has to choose
the best method depending on the topic at hand.
A case is a written account of real or simulated managerial
problems, dilemmas, and situations calling for solution. Analysis
of cases is an exercise in critical understanding of concepts and
cases of problems and events.
Guidelines on Case Analysis for Students:
Proper case analysis requires you to follow these steps.
First Step:
First of all you should study the case thoroughly, start with
quickly reading the case and understanding the general draft of
it. Then re-read the whole material slowly taking note of all
important issues, facts, points and ideas.
Second Step:
After what you have known about the case, the most important
thing is your ability to identify the main problem and discover
relationships between the problem and the factors responsible
for it.
Your critical insight should help you distinguish between the
problem and the symptoms of the problem. For example frequent
strikes in a company can be viewed as a problem. But, if you are
study carefully you will realize that they are actually symptoms
of something being wrong in the organisation, maybe its work
culture system of promotion and rewarders. Hence your work
is to identify the real problem as distinguished from its symptom.
235
Third Step:
Write down the problem or problems which you have identified
in the case in your own words.
Fourth Step:
Identify the causes of the problem. State relevant facts from the
case supporting the causes. Here you should remember that the
facts are not your opinion. If you make any assumption in order
to find the cause of the problem then state them clearly.
Fifth Step:
After identifying the problems and its causes the next and the
most important step is to suggest answers or suggestions to the
problem or questions raised in the case.
Sixth Step:
Evaluate each solution in terms of its relevance to the objective
and decision to be taken. After evaluating the solutions
recommend that solution which according to you is the best.
Seventh Step:
If required in the analysis or if asked in the cases also work out a
plan of implementation of the solution.
Advantages of Case Method:
The case study method helps to improve the reasoning power of
students. It stimulates the mind to think creatively and prepares
students to find solutions. The method is found to be very
effective in enabling the students of management to cultivate a
vital management skill - the ability to grasp and comprehend
the issues involved in a business situation and to analyse it
precisely and methodologically to bring out a feasible solution
from a large range of alternatives. Classroom discussion of case
studies renders the students with an exposure to distinctive
situations from which general and specialized managerial
techniques can be mastered.
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Case Studies
Principles of Management
Case-l
Ceylon Fertilizer isa urea manufacturing unit having a capacity
of 500 tonnes per day. The total work force of the plant is around
2,000. Being a self-contained plant, it has its own workshop in
order to take care of regular maintenance work. The workshop
functions in two shifts a day, under a shift incharge for each shift
who is in the cadre of AEE. The workers have been grouped into
two groups, i.e., Relay' A' and 'B'. The shift routine changes once
a week, Sunday being the weekly holiday. Besides the two shifts,
there are a group of people under a Senior AEE attending in
general shift hours.
The Relay' A', consisting of 18 workers is placed under the charge
ofShri Muthu who is a graduate in mechanical engineering. After
undergoing training for a period of six months in various
divisions in fertilizers, he had acquired a thorough knowledge
of works to be undertaken by the Workshop. After being a Relay
Su pervisor for 3 years, he has been recently promoted to the post
of AEE, who is the shift incharge. When he joined the workshop,
he found that the tasks were done with the application of thumb-
rules and higher officers had to be satisfied with such a quality
of work.
Shri Muthu, on witnessing this, started to instruct his workers in
various theoretical aspects of welding, machining etc., which he
had studied in his college. They all highly appreciated the skill
and techniques he had taught. The workers now learnt to do
things in a better way. Thus, he gained the confidence of workers.
As he was able to finish his work in time and in a better way
than Relay 'B', more work orders were allotted to his group. A
few workers in this group started to grumble and one of the
Foremen came and told Mr. Muthu that the" other relay workers
do not wantto strain much and they are murmuring over getting
more work." Muthu, however, convinced the Foreman that extra
work should be taken as a credit and recognition, and they should
237
do their best. After this had happened some workers even tried
to get transferred to the other Relay.
One morning, Muthu was making arrangements for the work to
be taken and was giving instructions to his foreman. Turner, Kali
came and told him, "Sir, father of Fitter Sami expired last night
and we all want to go and attend the funeral" and added "it is
customary for the men in the workshop to attend such funerals
and the shift-incharge has to arrange a lorry or any conveyance
for the people to go to Sami's house, which is nearly eight km.
from the Plant." Since Muthu joined the company, this was the
first such instance occurring and as he had to finish some urgent
work orders. He told the worker Kali,"You all need not to go to
the funeral. I can, however, permit a few of you as representatives
of Relay A' to go and offer condolences to Sami's family."
I
Further, he regretted that he would not make any arrangements

for conveyance. This statement created a turbulence among the
workers and a group of workers stopped the work and started
demanding that they be allowed to attend the funeral or else
they wanted to stop work in the coming shifts. The Foreman
hurried up to AEE, Mr. Muthu to explain the turbulent situation
on the shop-floor.
On hearing this, Muthu told his Foreman, "I have given you an
alter!lative and I have already told the urgency of work and I
am going to allocate the work as per planning schedule. If the
work is not done, I may have to take action against you." Then
the group of workers started discussing among themselves as to
what to do next. A Turner came forth and said, "You are not
considerate enough on human matters and if you are still
adamant we may prefer half-a-day wages cut as we must go and
attend the funeral. Anyhow you have to make arrangements for
our conveyance." Muthu at this instance noted that a small group,
who were usually complaining about the workload and were
murmuring, were keenly interested in the affair. He decided to
face the situation as a matter of prestige. He issued the gate pass
to whoever wished to go, still emphasizing that he would not
arrange any conveyance. Nearly 25 per cent of the workers
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Case Studies
remained and the other collected money from all for the funeral
and went off.
On that day, Muthu could finish only a part of the work as
planned and he had to explain what had happened in his Relay,
to his boss.
When he came the next morning, it was rumoured that only a
few of the workers attended the funeral and the others had gone
to the cinema theatre near the village. Muthu got irritated by the
workers' behaviour and started writing memos to those who had
received the gate pass the previous day. Some workers got
annoyed by this action of Muthu and they approached the union
to intervene. The news had spread to other divisions and there
was an air of protest at all places in the Fertilizer Plant.
Ql: What is your view of the action taken by Mr. Muthu?
Q2: What are the weaknesses and strong points, as you consider,
of Mr. Muthu as a Manager?
Q3: How would you have tackled the situation, if you were Mr.
Muthu?
(Source: IGNOU Question Paper, 2005)
Case-2
Imperial Chemical Industries is an international firm. It consists
of 11 divisions doing business in speciality chemicals,
pharmaceuticals, agricultural chemicals and fertilizers, paints,
explosives, oil, fibres, petrochemicals and plastics. It is a British
firm with a large market presence in this country and Europe
and smaller markets in many other countries.
The 1980 world recession hit ICI hard. Earnings in 1979 had been
Rs. 595 million, but in 1980 ICI lost Rs. 27 million. In 1982, the
company earned only Rs. 196 million. This drastic decline in
earnings was the result of several factors: a poor world economy,
an inflated rupee, the fall of commodity chemical prices and a
rise in operating expenses all took their toll. However, an
unfocused response to these outside factors also contributed to
the problems. By 1982, some of these factors started changing:
239
The rupee was weakening and the world economic picture was
brightening. However, many of the underlying problems within
ICI were still present and had to be taken care of by ICI's new
chairman.
The new chairman wanted to examine the current structure and
functioning of the board of directors first. He had three
alternatives before him in structuring the management of ICI:
(a) maintain the status quo,
(b) become a holding company, and
(c) make the company more than the sum of its parts through
a restructuring of responsibilities.
Each alternative offered advantages and disadvantaged, but one
had to be chosen.
At the time, the company was structured, each board member
was responsible for a separate division. Each board member
planned for the future of his division and tried to persuade other
members to support it. Each member had a vested interest in
seeing his or her division receive substantial funds, larger
budgetary allocations and the chance to pursue a goal that may
or may not be consistent with the goals of other divisions of the
organisation as a whole. Each member mapped out a strategy
for his or her own division, and no one coordinated the plans.
Not surprisingly, conflicting goals were fixed, and self-interest
dominated.
One option for change was to become a holding company,
whereby the board would give a minimum amount of guidance
to each division. Each division would then be expected to
contribute a certain amount of profit to the corporation, each
would be independently responsible for meeting its profit goal.
In large part, the holding company option negated the necessity
of an active board of directors.
The final option was to make the board responsible for the overall
direction and performance of the company instead of each
director managing one division. The board was to set company
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Case Studies
goals and coordinate divisional goals with it. Day-to-day

responsibility was to rest with the president of each division,
bu t the process and decisions were subject to be reviewed by the
board.
Ql: What factors do you feel are important in deciding the
structure of the Board of Directors?
Q2: What structure is best suited to the organisation? Why?
Q3: What process should be followed to have a smooth change
in structure if the chairman decides to go for a change?
Case-3
Mr. Anand occupies No.2 position in the Corporate Planning
Department of multi-product compa.ny having a turnover of
more than Rs. 900 crores and operating in a high technology (hi-
tech) industry. For the last five years, Anand had been associated
with strategic planning of the company and recently he has been
deputed to a task force to reorganise the company to cope up
with the changing technology and environment.
At the last meeting of the Board of Directors of the company, the
members expressed their concern about the falling competitive
position of the company in the industry. The main reason cited
by the Chief Executive was the outdated organisation structure
which has not undergone any change for the last 10 years though
the size, technology and environment of the company have
changed tremendously. It was on the advice of the Chief
Executive that the Board of Directors decided to set up a task
force for the company's reorganisation.
At the first meeting of the task force, Anand, who is an expert in
planning, convinced the other members to adopt the following
procedure:
(i) Determine exactly what type of structure the company has
at present.
(ii) Determine the type of environment the company faces now
241
and the weaknesses of the present structure.

(iii) Forecast the environmental changes in the future and the
type of technology to be used by the company.
(iv) Design the organisation structure to meet the future
challenges.
It was discovered that the company is currently structured along
classical lines and the company is operating in a highly dynamic
environment. The environment in future is likely to be more
uncertain because of fast changes in technology and requirements
of customers and competition by MNCs. The task force came to
the conclusion that the structural design must be responsible to
change and if this is not done, the company's survival in the
market would be made more difficult..
Ql: How far do you agree with the procedure adopted by the
task force?
Q2: Explain how the system and contingency approaches can
contribute to the analysis of this case.
Q3: What type of organisation design should the task force
recommended? Explain its broad features.
Case-4
Raju and Kirti have been friends since their school days. After
completion of their college education, Raju (son of a businessman)
joined his father's business CDB firm and Kirti completed his
CA and joined a well known accounting firm KPL Associates.
Being good in his job, Kirti slowly established a name for himself
in the business circles.
Meanwhile, under Raju, CDB firm started growing and went on
to become a large organisation. CDB firm was looking for
competent accountants to fill up two vacancies. Tina (another
competent Chartered Accountant) and Kirti were short-listed and
finally hired by the CDB firm. Like a lot of successful
professionals, both Kirti and Tina were confident about
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Case Studies
themselves and also about giving their best to the organisation.

After some time, to keep pace with the organisation's growth,
CDB went on to bring about new team structure changes. One
day the General Manager (HRD), Shirish had an opportunity to
meet Raju and during the course of reviewing the structural
changes said "Sir, both Kirti and Tina have similar backgrounds,
they are both talented and good and seem to enjoy working with
us and yet have reacted in different ways to our new team
structure."
When asked to explain, the General Manager (HRD), Shirish said
"Last week, a new approach was created for the AD Audit
because it was felt that we didn't have much experience with
that type of audit. Tina has responded very well to the changed
procedures, but Kirti seems not to be very happy about them. In
a short time, he's gone from being one of the most pleasant
employees to being very difficult to get along with. At times
some of the subtle ways of managing people surprise me. We
have employees facing the same set of circumstances and yet
get such very different reactions from them. I simply don't
understand, why these differences exist in behaviour among such
employees. What should I do?"
Ql: If you were Raju, what advice will you give to Shirish?
Q2: Can you suggest ways to avoid such occurrences in future?
243
Case-l
One afternoon in June 1972, Seth, the industrial engineer of ABC
Company, was called to the office of his immediate supervisor
Kapil, the production manager. Kapil said, "Seth, I want to
discuss a situation in the production department. A lot of people
feel that Joshi is not the right man for the Assistant
Superintendent's position. The President and others have
decided that I have got to fire Joshi or at least move him out of
production. Everyone wants to fire Joshi, but I won't do it to
him. I was talking with Bhal this morning, and we decided that
you might be able to make use of Joshi in your department."
Seth was surprised by both the information, and the proposal.
Kapil concluded his comments with, "Seth I am asking you to
take Joshi. You can say 'No'. But then he gets fired. I have told
Joshi this. Also, Joshi knows that if he goes with you he will take
a pay cut. However, I think you can make use of him both to
your own and his satisfaction. You are, anyway, carrying outan
in-process quality controt and you might be able to make good
use ofJoshi in view of his long technical experience of production
work. Think it over, and let me know by tomorrow."
Seth thought over the matter.
ABC Company had been a successful enterprise until March 1972
at which time it suffered a sharp decline of profits: sales had
fallen oft and production costs had risen. The President adopted
three measures which he hoped would improve the condition.
First, by creating an Industrial Engineering department for
establishing work standards on all production operations, to
determine which manufacturing costs were out of line and where
remedial action should be taken. Seth, 28 years old, who had
been with the company for two years in the Purchasing
Department, was selected. Seth had B.E. and M.B.A. degrees to
his credit. What he lacked in his business experience he made
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Case Studies
up by his eagerness to learn. He was ambitious and liked by his

associates. He wanted a transfer from Purchasing to Production
for better opportunities for advancement.
Secondly, he consulted a Management Consultation firm to make
a study of the Production Department. They pointed out that
the chain of command was to long from Production Manager
through Plant Superintendent through Assistant Superintendent
to Foremen. They recommended the elimination of the position
of Assistant Superintendent.
Thirdly, he engaged an Industrial Psychologist to appraise all
the Supervisory Personnel.
Joshi had been with the Company for 20 years since its founding,
and during this period had worked on every production
operation, and his last 11 years had been in supervisory capacity.
His manners were rough and aggressive, and he had little formal
education. The Industrial Psychologist's report about Joshi
contained the following points:
(i) Evaluation for the position of Assistant Superintendent Not
good enough.
(ii) Capacity for good human relations in supervision: Will have
friction frequently.
(iii) Need for development counselling: Counselling greatly
needed.
(iv) General evaluation: Joshi had a good ability profile. He
suffers from a sense of inferiority. He does not like the
responsibility of making decisions. His supervision is that
of Autocratic type. Though he has the ability, as far as his
personality make-up is concerned, he is out of place in the
present position.
Ql: What is the core problem in the case? Explain.
Q2: Explain Joshi' s behaviour and work experience vis-a-vis the
psychologist's report.
Q3: How do you see Kapil's suggestion to Seth? Give reasons.
245
Q4: What are Seth's considerations in taking a decision? What

should he do? Explain.
Case-2
Giridhar had come a long way from when he joined RP.
Communications (having a turnover of Rs. 20 lakhs) as a trainee
artist in 1995 and today he had come to occupy the position of
Creative Head at RP. Communications (with a turnover of Rs.
15 crores). As a young trainee (in 1995), Giri (as Giridhar is
addressed by his colleagues) had been an amicable personalty,
he had always displayed keenness to gain knowledge - learn
more, many visible traits of creativity - in the sense try to make
"unique" / different from others presentations, willing to share
information and so on. It was typically these qualities of Giri
which made him approachable to others and appreciated by one
and all, and also saw him rising in the organisation structure.
Nicky Tanwar, the Creative Director at RP. Communications,
who had known Giri right from the time he had joined RP.
Communications as trainee, was surprised at recalling the
contents of the just concluded meeting with the members of the
creative team at RP. Communications. Meena (a recent recruit
at RP.) had said "Madam, Giri sir scares the hell out of us by
refusing to listen to our point of view." Raj, an executive at RP.
Communications had revealed "Madam, Giri withholds
important information from us, and creates conflict when he has
to interact with other teams at R.P."
Mohan, a senior creative manager at R.P. had said thatGiri seems
to have changed, he seems to prefer to adopt a forcing style, like
a controller, and expects all the assignments to be completed
before time, and doesn't entertain any questions / or queries from
any of the creative team members. Nicky found it hard to believe
that a likeable person such as Giri could cause conflict.
Nicky had promised the creative team to look into the matter
and have a talk with Giri. After an informal chat with Giri, Nicky
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Case Studies
felt that one of the causes of Giri's behaviour could be Role

Ambiguity. This she had concluded from one statement made
by Girl "You know Nicky, my team is good, however, they expect
me to behave as I was before. I am trying my best to convince
them that in my new role I am expected to perform even better
than before."
Nicky decided to seek the help of the CEO of Learn and Grow
Leadership Centre (LSLG), a training firm, who regularly holds
workshops meant for helping professionals and executives of
firms to diagnose their own behaviour patterns as well on how
to manage stress that could cause various levels of conflicts for
the individual as well as the organisation.
Ql: What do you think is the major cause of the problem in the
above case?
Q2: Do you agree with Nicky that Role Ambiguity may have
caused a change in Giri's behaviour? Why?
Q3: Can you suggest ways in which firms such as R.P.
Communications can avoid such occurrences in future?
Case-3
Jagannath (Jaggu fpr his friends) is an overambitious young man.
For him ends jus~fy means.
With a diploma in engineering Jaggu joined, in 1977, a Bangalore
based company as Technical Assistant. He got himself enrolled
as a student in an evening college and obtained his degree in
engineering in 1982. Recognizing his improved qualification,
Jaggu was promoted as Engineer-Sales in 1984.
Jaggu excelled himself in the new role and became the blue-eyed
boy of the management. Promotions came to him in quick
succession. He was made Manager-Sales in 1986 and Senior
Manager-Marketing in 1988.
Jaggu did not forget his academic pursuits. After being promoted
as Engineer-Sales, he joined the M.B.A. (part-time) programme.
247
After completing his M.B.A., Jaggu became a Ph.D. Scholar and

obtained his Doctorate in 1989.
Functioning as Senior Manager-Marketing, Jaggu eyed on things
beyond his jurisdiction. He started complaining against Suresh,
Section Head and Prahalad the Unit Chief (both production) to
Ravi, the Executive-Vice President. The complaints included
delay in executing orders, poor quality, customer rejections, etc.
Most of the complaints were concocted.
Ravi was convinced and requested Jaggu to head the production
section so that things could be straightened up there. Jaggu
became the Section Head and Suresh was shifted to sales.
Jaggu started spreading his wings. He prevailed upon Ravi and
got sales and quality under his control, in addition to production.
Suresh, an equal in status, was now subordinated to Jaggu.
Success had gone to Jaggu's head. He had everything going in
his favour - position, power, money, and qualification. He
divided workers and used them as pawns. He ignored Prahalad
and established direct link with Ravi. Unable to bear the
humiliation, Prahalad quit the company. Jaggu was promoted
as General Manager. He became a meg~lomaniac.
Things had to end at some point. It happened in Jaggu's life too.
There were complaints against him. He had inducted his brother-
in-law, Ganesh, as an engineer. Ganesh was by nature corrupt,
he stole copper worth Rs. 5lakh and was suspended. Jaggu tried
to defend Ganesh but failed in his effort. Corruption charges were
also levelled against Jaggu who was reported to have made nearly
Rs. 20 lakh for himself.
On the new year day of 1993, Jaggu was reverted back to his old
position - sales. Suresh was promoted and was asked to head
production. Roles got reversed. Suresh became boss to Jaggu.
Unable to swallow the insult, Jaggu put in his papers.
Back home, Jaggu started own consultancy claiming himself as
an authority in quality management. He poached on his previous
company and picked up two best brains in quality.
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Case Studies
From 1977 to 1993, Jaggu's career graph had a steep rise and a
sudden fall. Whether there would be another hump in the curve
is a big question?
Ql: What is the core issue in the case? Discuss.
Q2: How do you see the rise and fall of Jaggu vis-a-vis prevailing
power dynamics and overall organisational policies of the
company? Support your answer with logic.
Q3: What would you do if you were
(i) Suresh
(ii) Prahalad, and
(iii) Ravi?
Q4: What would be your action if you were the Managing
Director of the company?
Case-4
TransAct Insurance Corporation (TIC) provides automobile
insurance throughout the south-eastern United States. Last year
a new president was brought in by TIC's Board of Directors to
improve the company's competitiveness and customer service.
After pending several month assessing the situation, the new
president introduced a strategic plan to improve TIC's
competitive position He also replaced three vice presidents. Ram
Kumar was hired as vice president of claims, TIC's largest
division with 1,500 employees, 50 claims center managers, and 5
regional directors.
Ram Kumar immediately met with all claims managers and
directors, and visited employees at TIC's 50 claims centers. As
an outsider, this was a formidable task, but his strong
interpersonal skills and uncanny ability to remember names and
ideas helped him through the process. Through these visits and
discussions, Ram Kumar discovered that the claims division had
been managed in a relatively authoritarian, top-down manner.
He could also see that morale was extremely low and employee-
management relations were guarded. High workloads and
249
isolations (claims adjusters work in tiny cubicles) were two other

common complaints. Several managers acknowledged that the
high turnover among claims adjusters was partly due to these
conditions.
Following discussions with TIC's president, Ram Kumar decided
to make morale and supervisory leadership his top priority. He
initiated a divisional newsletter with a tear-off feedback form
for employees to register their comments. He announced an open-
door policy in which any claims division employee could speak
to him directly and confidentially without going first to the
immediate supervisor. Ram Kumar also fought organisational
barriers to initiate a flextime programme so that employees could
design work schedules around their needs. This programme later
became a model for other areas of TIC.
One of Ram Kumar's most pronounced symbols of change was
the 'Claims Management Credo" outlining the philosophy that
every claims manager would follow. At his first meeting with
the complete claims management team, Ram Kumar presented
a list of what he thought were important philosophies and actions
of effective managers. The management group was asked to select
and prioritize items from this list. They were told that the
resulting list would be the division's management philosophy
and all managers would be held accountable for abiding by its
principles. Most claims managers were uneasy about this process,
but they also understood that the organisation was under
competitive pressure and that Ram Kumar was using this exercise
to demonstrate his leadership.
The claims managers developed a list of 10 items, such as
encouraging teamwork, fostering a trusting work environment,
setting clear and reasonable goals, and so on. The list was
circulated to senior management in the organisation for their
comment and approval and sent back to all claims managers for
their endorsement. Once this was done, a copy of the final
document was sent to every claims division employee. Jim also
announced plans to follow up with an annual survey to evaluate
each claims manager's performance. This worried the managers
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Case Studies
but most of them believed that the credo exercise was a result of
Ram Kumar's initial enthusiasm and that he would be too busy
to introduce a survey after settling into the job.
One year after the credo had been distributed, Ram Kumar
announced that the first annual survey would be conducted. All
claims employees were to complete the survey and return it
confidentially to the human resources department where the
survey results would be compiled for each claims center
manager. The survey asked the extent to which the manager had
lived up to each of the 10 items in the credo. Each form also
provided space for comments.
Claims center managers were surprised that the survey Ram
Kumar had promised a year ago would be conducted, but they
were even more worried about Ram's statement that the results
would be shared with employees. What "results" would
employees see? Who would distribute these results? What
happens if a manager gets poor ratings from his or her
subordinates? "We'll work out the details later," said Ram in
response to these questions. "Even if the survey results aren't
great, the information will give us a good baseline for next year's
survey."
The claims division survey had a high response rate. In some
centers, every employee completed and returned a form. Each
report showed the claims center manager's average score for each
of the 10 items and how many employees rated the manager at
each level of the five point scale. The reports also inel uded every
comment made by the employees at that center ..
No one was prepared for the results of the first survey. Most
managers received moderate or poor ratings on the 10 items.
Very few managers averaged above 3.0 (out of a five-point scale)
on more than a couple of items. This suggested that, at best,
employees were ambivalent about whether their claims center
manager had abided by the 10 management philosophy items.
The comments were even more devastating than the ratings.
Comments ranged from mildly disappointed to extremely critical
251
of their claims manager. Employees also described their long-

standing frustration with TIC, high workloads, and isolated
working conditions. Several people bluntly stated that they were
skeptical about the changes that Ram had promised. "We've
heard the promises before, but now we've lost faith," wrote one
claims adjuster.
The survey results were sent to each claims manager, the regional
director, and employees at the claims center. Ram Kumar
instructed managers to discuss the survey data and comments
with their regional manager and directly with employees. The
claims center managers, who hocked to learn that the reports
included individual comments. Some managers went to their
regional director, complaining that revealing the personal
comments would ruin their careers. Many directors sympathized,
but the results were already available to employees.
When Ram heard about these concerns, he agreed that the results
were lower than expected and that the comments should not
have been shown to employees. After discussing the situation
with the regional directors, he decided that the discussion
meetings between claims managers and their employees should
proceed as planned. To delay or withdraw the reports would
undermine the credibility and trust that Ram was trying to
develop with employees. However, the regional director in that
area attended the meeting in each claims center to minimize
direct conflict between the claims center manager and employees.
Although many of these meetings went smoothly, a few created
harsh feelings between managers and their employees. The
source of some comments was easily identified by their content,
and this created a few delicate moments in several sessions. A
few month after these meetings, two claims center managers quit
and three others asked for transfers back to non-management
positions in TIC. Meanwhile, Ram wondered how to manage
this process more effectively, particularly since employees
expected another survey the following year.
252
Case Studies
Ql: Identify the forces pushing for change and the forces
restraining the change effort in this case.
Q2: Was Ram Kumar successful at bringing about change? Why
or why not?
Q3: What should Ram Kumar do now?
Case-S
Tushar had been hearing the rumour doing the rounds since the
past ten days. However, as per his nature, he had ignored it and
concentrated on doing his job even better. But today, Tushar had
seen his name along with other names recommended and
officially told to start attending the three month's computer
course to gain knowledge on the usage of computers to textile
industry.
Tushar, after completing a polytechnic (diploma) in Textile
engineering had joined the J.P. Mills as a junior assistant in the
design development department, some twenty years go. At the
time of joining, the textile industry was booming. J.P. Mills was
also doing well in terms of volume and profitability during the
boom period. However, with the opening of the economy and
the entry of many multinational readymade brands, a visible
change was seen in the customers' buying behaviour. The past
seven to eight years has seen a shift in the customers' mindset
towards purchase of ready-to-use wear. This was unlike the
earlier trend, when people preferred to purchase a well-known
textile company's cloth material (in this market J.P. Mills was
doing very well and had almost 27% market share), and get their
clothes stitched by any well-known tailor. So as to keep in pace
with the new market requirement, the J.P. Mills Owner and
Managing Director, Nitin Kapasi, decided to enter into a tie-up
with an MNC, Sandy Wear Store, which wanted to enter into a
joint venture with J.P. Mill to get a manufacturing base in India.
It was in this connection that the rumours started circulating
about the new management planning to remove the existing
employees of J.P. Mills by introducing programmes for them
253
under the guise of upgrading their knowledge in computers.

When the rumours started initially, many executives and
employees had put in their papers. But many others, like Tushar,
continued to put in their hours, but one could always sense their
uneasiness. Hence, seeing his name on the notice board, made
T ushar uneasy and he was expecting the worst, when he received
a call from Nancy, the P.A. to the Personnel Manager, Viresh,
asking him to meet the latter after the lunch break.
Tushar, when he met Viresh, was pleasantly surprised to hear
that in the new organisational set-up, he would be required to
do a lot of the work on the computer (packages). This would
eventually result in a lot of cost saving for the company, because
the available new computer packages in the market will help in
reducing the time (spent) between receipt of order, selection of
the various designs (optimised selection can be done with the
help of the new software packages) and execution of the orders
in time. Viresh ended the talk by saying that the new
management expected all this responsibility to be entrusted to
Tushar and hence his name had been put up on the list of those
required to attend various computer courses.
Ql: What factors had caused resistance in changing among J.P.
Mills employees?
Q2: Do you agree with the strategy adopted by Viresh in
communicating about the changes to Tushar?
Q3: Could you suggest any other way of handling the above
situation? Why?
Case-6
NP Software Technologies was an MNC, HQ in New York, keen
to develop a design centre in India. So in 1998, when the Indian
Centre at Bangalore got ready, the company sent its recruiting
agency to select a Sr. Manager (in charge of Software and
Hardware groups), required to directly report to the Country
Manager, (to be based in Bangalore). The recruiting agency
forwarded the name of Mukesh, 32 years of age, a
254
Case Studies
B. Tech. (lIT, Mumbai) with 10 years of industrial experience

(including handling of a few foreignassignrnents) to suit the post
of a senior manager. The core team from NP were impressed by
Mukesh's performance atthe interview and offered him the job.
Mukesh joined NP in June 1999. In the first 6 months after joining
NP, Mukesh showed interest and was actively involved in
recruiting many engineers (either freshers or with a few years of
relevant experience) to join NP's Hardware and Software
divisions. After some time, i.e., from early 2000 onwards
Mukesh's behaviour started changing and this was visible in the
type of decisions taken by him. To quote a few instances:
The new recruits were invited for a pep talk immediately after
the orientation programme. During this meeting Mukesh did
most of the talking and did not encourage the new entrants to
open up and mingle with each other.
• Very often Mukesh was heard voicing aloud on finding it
difficult to set clear-cut directions and delegate properly to
his subordinates.
• When top management took strategic decisions to re-
organise divisions, adopt new production technologies and
reduce its workforce, Mukesh found it difficult to implement
the needed adapta tions. Very often he was seen getting into
verbal fights with the Country Manager, and not able to
convince his subordinates about the new transformations
and changes suggested by the top management.
• At times, his subordinates found it more apt to approach
the Country Manager's chamber and seek clarity with
regards to their work.
• Mukesh was called by his superior and told to modify his
behaviour in view of the company's and his own interest.
But Mukesh took the talk from the Country Manager in his
own stride and very lightly. Ultimately one fine day,
Mukesh was asked to resign and leave NP Software
Technologies.
255
Ql: Do you think it was wrong on the part of Mukesh to have

joined NP Software Technologies? Why?
Q2: What suggestions can you make to Mukesh to help him to
modify his behaviour?
256
Case Studies
Case-l
Proctor & Gamble and HLL are highly competitive companies
in the shampoo market. Both the companies have brands for
various segments. It may be worthwhile to mention the HLL
has created and nurtured Sunsilk and Clinic brands for more
than two decades in the Indian market. P & G's Pantene, HLL's
Organics and Colgate Palmolive's Optima got into the market at
almost the same period of time. Pantene and Optima were priced
around Rs. 72 for 180 ml. (some months after the launch) while
Organics was priced at around Rs. 65.15 for 180 ml. The three
brands were also available in sachets. They were positioned with
"haircare / nourishing" propositions.
Q: Comment on the pricing approach of the three brands
mentioned above.
ACC is a well-known brand in the category of cements. It has a
large distribution network of around7000 stockists and 120 C &
F agents. IN 1995, the company's market share declined to 15%
from the earlier 30%. About three years back the brand opened
its first company owned retail outlet called" ACC Ki Duniya"
(World of ACC). The outlet reassures the customer about the
genuine material, and encourages interaction. This type of outlet
is also likely to enhance the company's image.
Q: Comment on the pros and cons of an outlet of this kind.
Would such outlets alone enhance sales? Explain.
Case-2
Water purification (households) market in India is slowly
b~coming competitive with the introduction of Aquaguard in a
big way. Zero-B is another brand which has been in the market
for the last few years. It also offers portable models (tumblers).
New brands are also entering the market. Aquapen, a pocket
sized water purifier was launched in 1997 at a cost of Rs. 594.
257
The product works on a 6V battery and has a LED indicator which

flashes every five seconds to indicate the product is operational.
The purification process lasts for about 50 seconds. A battery
lasts for about 5000 glasses. The company planned to retail the
product at around 50,000 outlets and had planned an advertising
budget of Rs. 5 crores.
Taking into account, the other brands in this market, formulate
a detailed marketing plan for Aquapen addressing the following
issues:
Ql: Specify the target segment you would select for Aquapen.
Q2: What will be its positioning?
Q3: Identify the media strategy to reach out to the target
segments.
Q4: Comment on the distribution strategy.
Case-3
Office Needs, is a small chain of distributors of good-quality office
furniture, carpets, safes and filing cabinets. Within each category,
the com pany offers a wide variety of products with a great many
variations of each product being offered. For instance, the
company currently offers around 42 different designs of chairs
and 23 varieties of office desks. The company keeps in touch
with advances made in the office furniture field worldwide and
introduces those products which are in keeping with the needs
of the market in terms of design, workmanship, value for money
and technical specifications.
Office Needs trades only in quality furniture which is sturdly
constructed. Differences between its products and cheaper, lower
quality ones are well known to those who have several years of
experience in the busines.
An important feature, the company feels, is the availability of a
complete list of components of the furniture system. This enables
the customer to add bits and pieces of matching designs and
colour in the future. Such components are available for sale
258
Case Studies
separately. Systems are maintained in stock by the company for

a number of years, and spare parts,for chairs and other furniture
are always available.
The trade is currently witnessing a downtrend due to recession
and players from local unorganized sector. Office Needs has also
experienced the same over the last two years. In addition, it had
to trim the profit margins. Last year, it barely broke even and
this year it is heading for a small loss for the first time in the
company's ten year history.
Ql: Explain the term Product item, Product line and Product
mix in the context of the above situation.
Q2: Advise the company in relation to its Product mix decisions
and its effects on the company's image.
Q3: What strategy would you recommend to counter
competition from the unorganised sector?
Case-4
Sir Richard Branson's Virgin Atlantic has launched a Frequent
Flyer scheme for pets. The airline's animal customers are
increasing. In 2003-04, it carried 687 pets bu t this year pet business
almost doubled to 1250 animals. Depending on size, it costs
around, 400 per pet to travel in the hold for a round trip to New
York. The animals are reportedly better treated than humans on
most budget carriers. Virgin offiers an array of corporate goodies.
Dogs get an exclusive Virgin doggy T-shirt and sparkling doggy
tag. Cats are given a toy mouse called Red and ferrets receive a
limited edition of flying jackets. Under the frequent flyer scheme,
animals will receive a "passport" which records one paw print
per flight. After five flights the pets get even better gifts, such as
hand-made bowl or non-slip mat. They can even donate 1000
miles to their owner, butof course they cannot redeem the points
for flying solo. The pets whose owners travel premium class
would get free pedicure, their fur will be blow-dried and receive
clothes from Gucci, Burberry and Prada.
259
Ql: Who are the Target Audiences for such a sales promotion
and what implicit or explicit benefits does it offer?
Q2: Do you think that such a scheme will give sales volumes to
Virgin Atlantic?
Q3: If you have to handle this task, what communication
strategy would you recommend to Sir Richard Branson?
Case-5
BPL has launched the digital camera VPC-G200EX at Rs. 39,000.
It does not require conventional films as it can store images in
its memory. A niche segment of PC users, journalists, multimedia
agencies, architects, doctors and professionals are the primary
segments for the product. The benefits of the product include
viewing pictures on a built-in LCD screen, and the voice memo
(6 seconds) that could be added to every picture. Web page
designers could have pictures on the Internet through their
personal computers. These images could also be retouched or
modifed using appropriate software. Photo albums can be
created on floppies. The product may compete with scanners
which could scan conventional photographs into a computer.
BPL has positioned the product as ' future of photography'. The
product is available in 25 showrooms of BPL. Phillips, a
competing brand, has also launched digital cameras.
Ql: Who, in your view, would be the most appropriate target
consumers for the product and why?
Q2: Outline suitable promotion and positioning strategies for
the prduct.
Case-6
Until recently the female investor market was largely ignored
and was not targeted as an important market opportunity.
Consumer analysis of the female investor market uncovered a
variety of differenes with respect to needs, demographics,
lifestyles, income, and awareness and knoweldge of investment
260
Case Studies
alternatives. Other differences, such as media habits, pointed out

the fact that there is tremendous diversity among this group of
investors. A quantitative analysis of this information uncovered
the existence of three market segments, each unique in terms of
needs for financial services, demographics, consumer lifestyle,
awareness and knowledge of financial services, and media habits.
Each of these female investor segments represent a unique market
opportunity. To design an effective marketing strategy for any
or all of these segments, it is first necessary to understand the
unique aspects of each female investor segment.
The Career Women:
This segment of the female investor market is the smallest butis
growing rapidly. These investors are younger (30 to 40 years
old), college educated, and actively pursuing a career. Their
incomes are high relative to incomes of other working women
and growing as they progress in their careers. This group includes
single and married females, but the majority did not have
children living in their households.
While their demographics are unique, equally important
differences exist in their needs for financial services. Women in
this segment have higher incomes and pay considerable taxes
because they are single, or, if married, have two sources of
income. As a result their needs focus on ways to increase their
financial holdings without incurring additional tax obligations.
Also, because they do not need currnet income, they have a
greater need for long-term capital appreciation rather than
current interest or dividend income.
The Single Parent:
This segment is the second largest in size and also growing. These
female investors are middle aged (35 to 45 years old), unmarried,
but have children living at home. Their single-parent status could
be the result of divorce or death of a spouse. Because these events
tend to happen more often at mddle age, this particular female
investor is often thrust into managing money without much
261
experience. Current income is generally under pressure and

money affairs have to be carefully budgeted.
For this segment, security is first. With parental responsibility
and limited income, they want to make sure their money will be
there in the future. As a result, they prefer investments that offer
secure growth. This investment will be a source of income later
in life and/ or used for their children's education. In either case
these consumers do not want to risk their futures.
The Old Investor:
This segment is the largest of the female market for financial
services. These female investors are older (55 and up) and
typically single. Unlke the "Single Parent," these female investors
do not have children at horne and often have more discretionary
income. Also, many of these investors have considerable
knowledge and experience with the many financial alternatives
that exist.
A need for current income makes this segment of female investors
different from the other two segments. In many instances, these
women support themselves from interest and dividends on their
investments. Because investments are often their sole sources of
income, they seek safety and minimum risk in the investment
they hold. Thus, their ideal investment portfolio would include
a variety of secure investments that yield good current income.
While many differences exist among the many female investors,
these three female investor segments capture important
differences in basic needs, demographics, an lifestyle as
summarize in Figure A. Base on these differences, individualized
marketing strategies could be developed for each segment. The
degree to which such strategies will succeed will depend on how
well each strategy satisfied the specific nees of each segment in
terms of both product offerings and market communications.
262
Case Studies
Figure-A
Summary of Female Investor Segmentation
Segment Basic Needs Experience Key Demographics

Career Tax avoidance, Limited to Educated working
women long term growth average at career, between
25 and 40
Single Security, future None to Unmarried with
parent income limited children, between
35 an 55
Older Current income, Limited to Typically single,
investor security extensive 55 and older
Ql: How well have the needs of the respective segments been
understood in the above study?
Q2: Based on the lifestyle and demographics of the above
segments, what kind of marketing strategy would you
suggest for the product design and promotion for an
investment and financial services company?
Q3: Which, in your view, is the most attractive market segment
out of three for the above company and why?
Case-7
Navin Mehta, a fresh chemical engineer, developed a new
detergent during his M. Tech. course. Upon passing out, he
invested a small capital to start manufacturing and seIling the
detergent under the brand name 'Nippo'. Corning from a middle-
class family himself, Mehta decided to price his detergent much
lower than the other detergents available in the market at that
time. His pricing strategy paid rich dividends and Nippo became
an instant success. Using his newly acquired financial strength,
Navin developed a premium quality bathing soap with a unique
colour and perfume combination. Although, the cost price of this
soap was itself high, Navin again priced it substantially lower to
263
be a comparable product in the market by maintaining a low

profit margin.
Ql: Suggest an appropriate marketing plan to Navin Mehta.
Q2: Do you feel Navin committed a pricing mistake in the case
of the bathing soap? Give reasons for your answer.
(Source: All India Management Association Examination Question Paper,
June 1998)
Case-8
Mr. Dinesh Kapoor recently retired from the armed forces. A
fine athlete and physical fitness enthusiast, Mr. Kapoor has been
leading a vigorous and active life.
Mr. Kapoor has been planning to start a business of his own after
his retirement for a long time. He had always felt concerned about
the low standards of physical fitness and poor quality of food of
one average Indian. During his participation in sport meets
abroad, he siad that the foreigners were well organized in this
field. Mr. Kapoor feels that running a gymnasium and a health
resort would offer a good business opportunity, besides fulfilling
an important need of the society at large. He has seen pictures of
ultra-modern gymnasiums and read about complete resort
facilities which exist abroad.
Mr. Kapoor is planning to establish similar facilities in a large
city in India. He is ready to settle anywhere and start this activity
in a place which offers a high potential of business success. He
would initially cater to the needs of company executives and
businessmen. He would later extend the scope of this venture to
include housewives and working women too. He is optimistic
that with the hectice lifestyle of present day business people and
the growing consciousness about good health, he would be able
to attract a substantial clientele. He is, however, aware of the
heavy financial investment required for this project and would
like to be careful before taking any long-term decision in this
regard. He would like to estimate the possible demand for this
type of service and an indication of the financial returns that he
can expect.
264
Case Studies
Q: Suggest a step-by-step procedure to estimate the market

demand for this type of activity and also people's attitude
towards the idea.
(Source: Marketing Management Question Papers, Pune University)
Case-9
Super Flask Ltd. company manufactures flasks and thermo-ware
products which are commonly used its customers for keeping
hot products warm and cold products cool for a reasonable perod
of time. The manufacturing plant is located 40 km from Pune
city. The present turnover of the company is Rs. 40 crore. The
average market growth rate is estimated to be 20 per cent for
thermo-ware and 10 per cent for flasks. The market potential of
the country was estimated in the following proportions:
North Zone 25 per cent
West Zone 25 per cent
South Zone 35 per cent
East Zone 15 per cent
In flask range the company was manufacturing the following
range of products:
Half litre tin flasks 10 models

Half litre plastic flasks 12 models
One litre tin flasks 9 models
One litre plastic flasks 10 models
Tea pots of different sizes 6 models
Jugs of differrent sizes 6 models
Airpots 2 models
Total 55 models
In thermo-ware range, the company manufacturers the following
range of products:
265
, Water bottles of differnt sizes 10 models

Casseroles of defferent sizes 9 models
Tiffin carriers of different sizes 6 models
Water coolers of different sizes 10 models
Total 35 models
The company was making its products available all over the
country. The company had its distributors in 500 important towns
having a population of more than 2.51akh each. The distrbutors
in turn were responsible for the local availability of goods with
varous types of retailers, e.g. crockery shops, utensil shops, etc.
Distributors were getting a margin of 15 per cent, whereas
retailers were getting a margin of 20 per cent on the sale prices.
All the distributors were contacting with the head office located
atPune.
The products were supplied in corrugated boxes, either by rail
or by road transport. For the distant places of southern, eastern
and northern parts of India, goods usesd to take 1 month to reach
with a lot of transit breakages. This is because goods are
dispatched in small lots and not in full truck loads because of
small requirements of individual distributors. For promoting the
products, the media used was the national daily newspapers and
radio with a limited budget of 1 per cent of the total sales value.
All the sales promotion activities are centralized. The sale force
of 30 consists of sales officers for the zone and the sales
representatives for the states.
With the substantial increase in the growth rate of the market,
many new entrants entered the market with better product range,
competitive prices, better distribution and promotional back-up.
Hence, the company started loosing its market share. The
managing director asked the marketing manager to look into
the present situation and formulate a competitive strategy for
retaining the company's market share and leadership.
266
Case Studies
Q: What promotional mix do you recommend for the

company?
267

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1 Principles & Practices of Management 1

1. Principles of Management 237

(d) People are illiterate

(c) Elton Mayo

Q.19: Which one of the following is not directly concerned with

Ans.16: Open system perspective

Principles & Practices of Management

of rank from top is .......... .

(d) Divisional structure

(a) Delegation of power to subordinates

(a) Decision making

(d) Nominal group technique

(d) Both (a) & (b)

(d) single-use plans

(c) Delphi teclmique

(d) Narrow span of management

Principles & Practices of Management

Ans.5: Organisational chart

Ans.79: Functional and project

Principles & Practices of Management

right number and kinds of people in the right places, and at

(c) Total Budgets managed

(a) Recruitment, Selection, Job Analysis, Induction

Q.37: Which is not an element of empowerment?

(d) Valuation of physical

(a) Performance appraisal

Principles & Practices of Management

Ans.I0: Human Resource Planning

Ans.47: Job specification

Principles & Practices of Management

and the relationship among its parts is known as -

Q.18: Untrue part of grapevine is called as

Q.24: Expression of human response to change is ........ .

(d) Elton Mayo

(d) Pictorial communication

(b) Statement of flow

Q.55: The ................................. .indicate the goods and services the

(a) Downward communicatin

(b) Circular network

Q.84: A grapevine information which is communicated without

Principles & Practices of Management

Ans.55: Operating budget

Q.6: Study of whole system or aggregate is known as ......... .

Ans.14: Short run and long run

Q.7: In the study of demand analysis price is a .......variable while

(c) Perfectly Elastic

Q.19: Advertising elasticity measures the responsiveness

between ............. with respect to ............ .

(a) Law of variable proportions

Q.32: Marginal cost cuts average cost at... ........... .

Ans.13: Relatively inelastic

(a) Variable Cost

(b) Prof. Night

Q.13: NNP at factor cost is known as .............. .

Total Population of a country

National Source of a country

Total Population of a country

(b) Higher Inflation