13 Full Mock Test of Management

DIWAKAR EDUCATION HUB
MOCK TEST OF
MANAGEMENT (CODE-
17)
AS PER NEW UPDATED SYLLABUS
DIWAKAR EDUCATION HUB
5/23/2019
AS PER NEW UPDATED SYLLABUS

5. Which one of the following practices is
not sought to be regulated under the
MOCK – 1 Consumer Protection Act, 1986?
(A) Sales of defective goods
1. When making purchase decisions the (B) Supply of services having some
main consideration involved in deficiency
organizational buying is (C) Misleading advertisements
(A) Product quality (D) Goods supplied free of charge
(B) Price
(C) Service Answ er - (D)
(D) All the above
6. In marketing research, primary data
Answ er - (D)
can be collected through
(A) Observational Method
2. Which of the variables is not used by (B) Survey Method
marketers for demographic (C) Experimental Method
segmentation? (D) All of the above
(A) Age
(B) Income Answ er - (D)
(C) Gender
(D) Poverty 7. Holistic marketing does not include
(A) Internal Marketing
Answ er - (D)
(B) Integrated Marketing
(C) Performance Marketing
3. An appropriate pricing strategy for a (D) Financial Marketing
new product to be introduced in the
market will be Answ er - (D)
(A) Average/Marginal cost-plus pricing
(B) Skimming/Penetrating pricing 8. Which of the following is not a
(C) Product-line pricing distinctive characteristic of services?
(D) Differential pricing (A) Transparency
(B) Intangibility
Answ er - (B)
(C) Inseparability
(D) Perishability
4. Multi-stage approach to product
pricing in a firm involves considerations Answ er - (D)
for setting the price as follows:
i. Selection of firm’s objective 9. To remain dominant, a market leader
ii. Composition of marketing-mix looks for
iii. Selection of target market (A) Ways to expand total market
iv. Selection of pricing policy and demand
strategy (B) Attempting to protect its current
share
Indicate correct sequence:
(C) Increasing its market share
(A) iv → ii → i → iii (D) all of the above
(B) iii → i → ii → iv
(C) ii → iv → iii → i
Answ er - (D)
(D) i → iii → ii → iv
Answ er - (B)
10. Consider the names of
organisations/persons listed in List – I
and their role/functions given in List – II:
WEBSITE- https://diwakareducation.institute.org.in/ CONTACT - 7310762592

List – I Answ er - (D)
List – II 13. The minimum subscription rate

a. Bureau of Indian Standards (BIS) i. for members of trade unions of rural
Measurement of Service quality
workers shall not be less than
b. Zeithmal, Parasuraman and Berry
ii. Measurement of quality of
(A) Rs. 12 per annum
Educational service
(B) Rs. 3 per annum
c. ISO
(C) Rs. 1 per annum
iii. Standardisation and quality control of
manufactured goods (D) No such provision
d. National Assessment and
Accreditation Council
iv. Quality marking and Certification of Answ er - (C)
standards
14. A union may claim recognition
Indicate the correct matching: for an industry in a local area, if it
abcd has membership of
(A) i ii iii iv
(B) ii iii iv i
(C) iv ii iii i (A) 10% of the workers in that industry.
(D) iii i iv ii (B) 15% of the workers in that area.
(C) 25% of the workers of that industry
Answ er - (D) in that area.
(D) 30% of the workers in similar
industry.
11. Creation of a political fund by
trade unions under the Trade Union Answ er - (C)
Act is
(A) Compulsory 15. A person is qualified to be

(B) Optional chosen as a member of the
(C) by donation from political parties executive or any other office bearer
(D) No such provision in the Act of the registered trade union if he
attained the age of
Answ er - (B)
(A) Fifteen years
(B) Eighteen years
12. What will be the minimum (C) Twenty one years
number of workers required for (D) Twenty five years
organizing a trade union for
registration according to the latest Answ er - (B)
amendment under the Trade
Unions’ Act, 1926? 16. The registered trade union can
collect political fund from its
(A) 7 workers members as a
(B) 10 %
(C) 100 (A) General fund
(D) 10% or 100 or 7 (B) Cannot collect political fund

(C) Separate fund from the interested (A) The trade union can raise its fund
members by such type of investments.
(D) Only from political parties (B) The trade union can raise its funds
by such investments with the
permission of appropriate government.
Answ er - (C) (C) The trade union can raise its fund
by such investments with the consent
17. Not more than 50% of members of its general body.
of the office bears of Trade union (D) The trade union cannot do so as it
can be outsiders, as per provisions is an attempt towards profit making.
of legislations.
Answ er - (D)
(A) Industrial Dispute Act
(B) Trade Union Act 20. The basic principle underlying
(C) Mines Act the enactment of the Trade Unions
(D) ESI Act Act is:
(A) To protect interests of workers

Answ er - (B) against disregard of human elements
in industries.
18. Trade union means any (B) To regulate the relationship of
combination formed primarily for workers and their organization by
the purpose of regulating the regulating the balance of power.
relations between (C) To provide strength to workers to
settle the industrial disputes.
(A) Workmen and employers (D) To provide security to workers
permanently against the occupational hazards.
(B) Workmen and workmen
permanently Ans- C
(C) Workmen and employers,
workmen and workmen, employers 21. Liability- side of the balance-sheet
and employers temporary or comprises:
permanent
(D) Workmen and employers, (a) Capital and reserve
workmen and workmen, employers (b) Long-term liabilities
and employers permanently (c) Current liabilities
(d) All of the above
Answ er - (C) Answ er - (d)
19.The Trade Unions Act empowers

a trade union to create a General 22. Balance Sheet of a firm indicates
Fund for its administration and which of the following?
maintenance. A trade union
purchased shares in the Unit Trust (a) Profit or Loss over a period.
of India to enhance its General Fund (b) Financial position of the unit over a
Account. Which of the following is period.
not correct as per law? (c) Financial position of the unit as on a
particular date.

(d) Position of assets and liabilities over (c) Acceptance
a period of time. (d) Charging
Answ er - (c) Answ er - (c)
28. When money is withdrawn from

23. Economic life of an enterprise is the bank, the bank will ------- the
split into the periodic interval as per - account of customer
------ concept
(a) Credit
(a) Matching (b) Debit and Credit
(b) Money measurement (c) Debit
(c) Periodicity (d) None of the above
(d) Accrual
24. Provision is provided for doubtful 29. An entry with more than one debit
debts is based on the principle of or credit is known as
(a) Going concern (a) Compound entry

(b) Objectivity (b) Singly entry
(c) Materiality (c) Multiple entry
(d) Conservation (d) Double entry
Answ er - (d) Answ er - (a)
25. Prepaid salary has 30. Loss leads to
(a) Debit balance (a) reduction in income

(b) Negative balance (b) Reduction in capital
(c) Credit balance (c) Reduction in profit
(d) None of the above (d) Increase in capital
Answ er - (a) Answ er - (b)
26. X draws a bill on Y. X endorsed 31. Which of these activities are not
the bill to Z. Who is the Payee included in the scope of human resource
management?
(a) X
(b) Y (A) Job analysis and design
(c) Z (B) Motivation and communication
(d) None of the above (C) Safety and health
(D) Organizational structure and design
Answ er - (c) ANS- D
27. A promissory note does not

require 32. Which of these is a HR Model?
(a) Noting (A) The Guest Model

(b) Discontinuing (B) Open - System Theory

(C) Mc Gregor's theory X and theory Y 37. Which of the following is a type of
(D) None of the above nontraditional worker?
ANS- A
a. contingent workers
b. part-time workers
c. people working in alternative work
33. Which of the following tasks related arrangements
to recruiting and hiring is not typically d. people with multiple jobs
handled by HR staff?
Select the answer from the codes given
(A) specify necessary job qualifications below
(B) develop pool of qualified applicants
(C) conduct initial screening interviews (A) a, b & c
(D) administer tests e. explain benefits (B) a, b & d
packages (C) b, c & d
ANS- A (D) a, b, c & d
ANS - D
34. The expertise of human resource

departments became indispensable with 38. What is the role of a Human Capital
the _____. Manager?
(A) introduction of employment laws A. Unlearn old skills and acquire new
(B) passing of equal employment laws skills
(C) increase of women in the workforce B. He or she seeks to fine-tune HR
(D) both (A) and (B) policies and practices to fir the culture
ANS-D C. It is the responsibility of a centralised
or a decentralised department.
35. _____ refers to the tendency of firms (A) Both A & C

to extend their sales, ownership, and/or (B) A, B and C
manufacturing to new markets abroad. (C) Both A & B
(D) B & C
(A) Expansion ANS- C
(B) Market development
(C) Globalization
(D) Export growth 39. Which of these is the purpose of
ANS- C recruitment?
(A) Make sure that there is match

36. Most people who are classified as between cost and benefit
nontraditional workers are _____. (B) Help increase the success rate of the
selection process by reducing the
(A) contingent workers number of visibly underqualified or over
(B) independent contractors qualified job applicants.
(C) job sharing (C) Help the firm create more culturally
(D) working multiple jobs diverse work - force
ANS- B (D) None of the above
ANS- B

(b) Objectivity
40. The poor quality of selection will (c) Materiality
mean extra cost on _______ and (d) Conservation
supervision.
Answ er - (d)
(A) Training
(B) Recruitment 45. Prepaid salary has
(C) Work quality
(D) None of the above (a) Debit balance
ANS- A (b) Negative balance
(c) Credit balance
41. Liability- side of the balance-sheet (d) None of the above
comprises:
Answ er - (a)
(a) Capital and reserve
(b) Long-term liabilities 46. X draws a bill on Y. X endorsed
(c) Current liabilities the bill to Z. Who is the Payee
(d) All of the above
(a) X
Answ er - (d)
(b) Y
(c) Z
(d) None of the above
42. Balance Sheet of a firm indicates
which of the following? Answ er - (c)
(a) Profit or Loss over a period. 47. A promissory note does not
(b) Financial position of the unit over a require
period.
(c) Financial position of the unit as on a (a) Noting
particular date. (b) Discontinuing
(d) Position of assets and liabilities over (c) Acceptance
a period of time. (d) Charging
48. When money is withdrawn from

43. Economic life of an enterprise is the bank, the bank will ------- the
split into the periodic interval as per - account of customer
------ concept
(a) Credit
(a) Matching (b) Debit and Credit
(b) Money measurement (c) Debit
(c) Periodicity (d) None of the above
(d) Accrual
44. Provision is provided for doubtful 49. An entry with more than one debit
debts is based on the principle of or credit is known as
(a) Going concern (a) Compound entry

(b) Singly entry support.
(c) Multiple entry
(d) Double entry (C) Frequency of such transactions.
(D) None of the above.
Answ er - (a)
Answ er - (D)
50. Loss leads to
(a) reduction in income 54. The acronym SWIFT stands for

(b) Reduction in capital
(c) Reduction in profit
(d) Increase in capital (A) Safety Width In Financial
Transactions.
Answ er - (b) (B) Society for Worldwide International
Financial Telecommunication.
(C) Society for Worldwide Interbank
51. Maintaining a foreign currency
account is helpful to Financial Telecommunication.
(D) Swift Worldwide Information for
(A) Avoid transaction cost. Financial Transaction.
(B) Avoid exchange risk.
Answ er - (C)
(C) Avoid both transaction cost and
exchange risk.
(D) Avoid exchange risk and domestic 55. Indirect rate in foreign exchange
currency depreciation means
Answ er - (C) (A) The rate quoted with the units of

home currency kept fixed.
52. India’s foreign exchange rate (B) The rate quoted with units of foreign
system is? currency kept fixed.
(C) The rate quoted in terms of a third
(A) Free float currency. D. None of the above.
(B) Managed float (D) None of the above
(C) Fixed .
Answ er - (A)
(D) Fixed target of band
Answ er - (B) 56. The maxim 'buy low; sell high' is

applicable for
53. Hedging transaction is indicated
by (A) Quotation of Pound-Sterling.
(B) Indirect rates.
(A) Transactions in odd amounts (C) Direct rates.
(B) Presentation of documentary (D) USDOLLARS.

Answ er - (C)
Answ er - (C)
57. India is facing continuous deficit
in its balance of payments. In the 60. If PPP holds
foreign exchange market rupee is
expected to (A) The nominal exchange rate will not
change.
(A) Depreciate. (B) The real exchange rate will not
(B) Appreciate. change.
(C) Show no specific tendency. (C) Both real and nominal exchange
(D) Depreciate against currencies of the rates will not change.
countries with positive balance of (D) Both real and nominal exchange will
payment and appreciate against move together
countries with negative balance of
payment. Answ er - (B)
Answ er - (A) 61. ……………………provides

information for income determination.
58. The effect of speculation on
exchange rate is (A) Financial accounting
(B) cost accounting
(A) It causes violent fluctuations in (C) management accounting
exchange rate. (D) none of these
(B) It aggravates the market trends.
(C) Either or both of A and B.
(D) Neither A nor B.
62. ……………….helps in ascertaining
Answ er - (C) costs beforehand.
59. The demand for domestic (A) Financial accounting

currency in the foreign exchange (B) cost accounting
market is indicated by the following (C) management accounting
transactions in balance of payment (D) none of these
(A) Export of goods and services

(B) Import of goods and services.
(C) Export of goods and services and 63. The scope of cost accounting
capital inflows. include…………..,……………
(D) Import of goods and services and and……………
capital outflows.

Answ er - (B)
(A) Cost ascertainment, cost
presentation, cost control
67. ………………is the oldest branch
(B) tax planning, tax accounting,
of accounting.
financial accounting
(C) presentation of accounting
(A) Financial accounting
information, creation of policy, day-
(B) cost accounting
to day operation
(C) management accounting
(D) none of the above
(D) none of these
Answ er - (A)
Answ er - (A)
64. Cost accounting disclose

68. ……………..includes financial and
…………….
cost accounting, tax planning and
tax accounting.
(A) The Financial position
(B) profit/loss of a product, job or service
(C) effect and impact of cost on
(B) cost accounting
business
(D) none of these
(D) none of these
Answ er - (B)
Answ er - (C)
65. ………..is a post mortem of past

69. In automobile,
costs.
…………………costing is used

(A) Process
(B) cost accounting
(B) batch
(C) both a & b
(C) job
(D) none of these
(D) multiple
Answ er - (A)
Answ er - (D)
66. ………………….aids in price

70. Service costing is used in
fixation.
industries producing………………

(A) Products
(B) cost accounting
(B) service
(C) both a & b
(D) none of these
(D) none of these

Answ er - (B) 74. Which of the following is a main
method of issue of stocks?
71. The goal of financial management
is to (A) Vendor placing
(B) Public issue through Prospectus
(C) Private placements
(A) Maximise the wealth of Preference
(D) None of the above
Shareholders
(B) Maximise the wealth of Debenture
Answ er - (B)
holders
(C) Maximise the wealth of Equity
75. The Capital Asset Pricing Model
shareholders
(CAPM) establishes the relationship
(D) All of the above
between
Answ er - (C)
(A) Risk and EPS
(B) Risk and value of the firm
72. The Internal Rate of Return (IRR) (C) Risk and the required rate of return
is determined where (D) None of the above
(A) The Net Present Value is positive Answ er - (C)

(B) The Net Present Value is negative
(C) The Net Present Value is zero 76. With reference to Working Capital
(D) None of the above Management, the term ‘float’ relates
to
Answ er - (C)
(A) Inventory Management

73. The Tax shield would result in (B) Receivables Management
(C) Marketable Securities
i. increase in tax liability (D) Cash Management
ii. Increase in EPS
iii. Decrease in EPS Answ er - (D)
iv. Decrease in tax liability

77. Working capital refers to the
Codes: capital mobilised for meeting
(A) (ii) and (iv)
(A) Long-term financial needs of the
(B) (i) and (iii)
company
(C) (i) and (iv)
(B) To meet day-to-day financial
(D) (iii) and (iv)
obligations of the company
Answ er - (A)
(C) To meet the future financial
requirements of the company

(D) None of the above 81. What is the median of the following set
of scores?
18, 6, 12, 10, 14 ?
Answ er - (B) a. 10
b. 14
c. 18
78. The factors affecting to P/E
d. 12
multiple are ANS D
(A) Dividend pay-out ratio and required 82. Approximately what percentage of
scores fall within one standard deviation of
return the mean in a normal distribution?
(B) Required return and expected a. 34%
growth rate b. 95%
c. 99%
(C) Dividend pay-out ratio and expected d. 68%
growth rate ANS- D
(D) Dividend pay-out ratio, required
83. The denominator (bottom) of the z-
return and expected growth rate score formula is
a. The standard deviation
Answ er - (D) b. The difference between a score and the
mean
c. The range
79. Balance of Payment is d. The mean
ANS A
(A) Balance of trade + Net earnings on
84. Let's suppose we are predicting score on a
invisibles training posttest from number of years
(B) Foreign exchange inflow – Foreign of education and the score on an aptitude test
exchange outflow given before training. Here is the
regression
(C) Balance of current account + equation Y = 25 + .5X1 +10X2,
Balance of capital account + Statistical where X1 = years of education and X2 =
discrepancy aptitude test score.
What is the
(D) Export of goods – Import of goods predicted score for someone with 10 years of
education and a aptitude test score of 5?
Answ er - (C) a. 25
b. 50
c. 35
80. The discount rate that makes NPV d. 80
equal to zero is known as ANS - D
85. The standard deviation is:

(A) Benefit–Cost ratio a. The square root of the variance
(B) Internal Rate of Return b. A measure of variability
(C) Discounted Pay-back period c. An approximate indicator of how
numbers vary from the mean
(D) Profitability Index d. All of the above
ANS D
Answ er - (B)
86. Hypothesis testing and estimation are
both types of descriptive statistics.

a. True d. Positive skew and negative skew
b. False ANS-C
ANS B
93. Why are variance and standard
87. A set of data organized in a deviation the most popular measures of
participants(rows)-by-variables(columns) variability?
format is known as a “data set.” a. They are the most stable and are
a. True foundations for more advanced statistical
b. False analysis
ANS- A b. They are the most simple to calculate
with large data sets
88. A graph that uses vertical bars to c. They provide nominally scaled data
represent data is called a ____. d. None of the above
a. Line graph ANS- A
b. Bar graph 94. ____________ is the set of
c. Scatterplot procedures used to explain or predict the
d. Vertical graph values of a dependent variable based on
ANS- B the values of one or more independent
variables.
89. The goal of ___________ is to focus a. Regression analysis
on summarizing and explaining a specific b. Regression coefficient
set of data. c. Regression equation
a. Inferential statistics d. Regression line
b. Descriptive statistics ANS - A
c. None of the above
d. All of the above 95. The ______ is the value you calculate
ANS- B when you want the arithmetic average.
a. Mean
90. The most frequently occurring number b. Median
in a set of values is called the ____. c. Mode
a. Mean d. All of the above
b. Median ANS- A
c. Mode
d. Range 96. Decrease in cash reserve ratio might
ANS- C lead to
1. Increase in credit creation
91. As a general rule, the _______ is the 2. Decrease in M3
best measure of central tendency because 3. Increase in M3/ M0
it is more precise. 4. Increase in interest rate
a. Mean (a) 1, 2, 3
b. Median (b) 2, 3, 4
c. Mode (c) 1, 3
d. Range
(d) 1, 2, 4
ANS-A
Answ er - (c)
92. Focusing on describing or explaining
data versus going beyond immediate data
and making inferences is the difference 97. Consider the following statements:
between _______. 1. The proposed AIIB is different from
a. Central tendency and common BRICS bank
tendency 2. Contingency Reserve Arrangement
b. Mutually exclusive and mutually between BRICS nations is to forestall
exhaustive properties short term Balance of payment
c. Descriptive and inferential pressures

3. Only BRICS nations can be part of (b) The sugar which is imported by the
New Development bank Government and allotted to Public
4. The former chairman of HDFC is Distribution System at a cost lower than
appointed as president of New that incurred by the Government
Development (c) The portion of sugar production that
Bank the Government takes away from sugar
(a) 1, 2 correct mills at lower than market rates for
(b) 1, 2, 4 correct supplying to the Public Distribution
(c) 1, 3, 4 correct System
(d) All the above (d) The portion of sugar production that
the State Governments supply to the
Answ er - (a) Union Government at less than market
rates
98. Consider the following statements:
1. Amber box subsidies include those Answ er - (c)
that impact on market prices
2. As of now there is no limit on Blue
Box subsidies
3. Only product patent can be issued for MOCK TEST - 2
pharmaceuticals in India
4. GI can be granted to a single person
(a) 1, 2, 3 correct
(b) 2, 3, 4 correct
(c) 1, 3, 4 correct
(d) All the above 1. GDP at factor cost is
The Right Choice of Achievers. P a g e |
10 (A) P (Q) + P (S)
Answ er - (a)
(B) GDP- IT- S
99. Consider the following statements:
1. Ponzi scheme has become very (C) GDP + DT +S
famous recently due to its healthy
returns and ethical investments (D) GDP- DT + S
2. IDRs are issued by Non-Indian
companies to Indian Investors Answer: (B)
3. Shariah Index was introduced by BSE
to attract Shariah funds from Arab
countries
4. India has power exchanges for 2. Which one is not the main objective of
electricity market. fiscal policy of India?
(a) 1, 2, 3 correct
(b) 2, 3, 4 correct (A) To increase liquidity in the economy.
(c) 1, 3, 4 correct
(d) All the above (B) To promote price stability
(C) To minimize the inequalities of income

and wealth
100. What is Levy-Sugar?
(a) The portion of sugar production of (D) To promote employment
the country meant for export opportunities.

Answer: (A)
5. Environmental degradation does not

consist of
3. Which one is not an element of internal
environment? (A) Land degradation and soil erosion
(A) Marketing capability (B) Problem of overgrazing and ecological

degradation
(B) Operational capability
(C) Floods
(C) Money and Capital market
(D) Personnel capability
Answer: (D)
Answer: (C)
6. Which one of the following concepts is

4. Out of the following, which four used as fund in the preparation of Funds
benefits are available to hosts countries Flow Statement?
from MNC’s?
(A) Current Assets
i. Transfer of technology
(B) Working Capital
ii. Learning of business mannerism
(C) Cash
iii. Strategic information sharing
(D) All Financial Resources
iv. Creation of jobs
Answer: (D)
v. Entertainment
vi. Better utilisation of resources

7. Window dressing is prohibited due to
vii. Enhancing social contacts.
(A) Conservation Convention
viii. Improved competition in local
economy (B) Convention of Disclosure
(A) i, iii, v, vii (C) Convention of Materiality
(B) ii, iv, vi, viii (D) Arrear of book accounts www.netugc.c om
(C) i, iv, vi, viii Answer: (B)
(D) iii, vi, vii, viii
Answer: (C)

8. Assertion (A): Ratio analysis is one the i. Secured creditors
tools employed to know the financial
health of a concern. ii. Unsecured creditors
Reason (R): Ratio analysis is not the only iii. Partners who have granted loans
technique available to take investment
decision. iv. Partners who have contributed over and
above profit sharing ratio
Codes:
Arrange them in correct sequence in the
(A) Both (A) and (R) are true and (R) is event of the dissolution of a firm.
the correct explanation of (A).
(A) ii, i, iii, iv
(B) Both (A) and (R) are true, but (R) is
incorrect explanation of (A). (B) i, ii, iii, iv
(C) (A) is true, but (R) is false (C) i, ii, iv, iii
(D) (A) is false, but (R) is true. (D) ii, i, iv, iii
Answer: (A) Answer: (B)
11. Which kind of economics explains the

phenomenon of cause and effect
9. Which of the following relate to relationship?
measures of non-financial performance of
a concern? (A) Normative
i. Customer satisfaction (B) Positive
ii. Business process improvement (C) Micro
iii. Learning organisation (D) Macro
Choose the right combination. Answer: (B)
(A) i, iii, ii, iv
(B) ii, iv, iii 12. Assertion (A): Marginal cost and
differential cost do not convey the same
(C) iv, i, iii meaning in all the circumstances.
(D) i, ii, iv Reason (R): Differential cost increases or

decreases due to change in fixed cost.
Answer: (D)
Codes:
(A) (A) is true but (R) is false

10. Consider the following parties:

(B) (A) is false but (R) is true
(C) (A) and (R) are correct and (R) is 15. Match List-I with List-II and select the
correct explanation of (A). correct answer.
(D) Both (A) and (R) are correct, but (R) is List-I List-II
not the correct explanation of (A).
1. Administered price a. Landed
Answer: (C) cost of imports
2. Parity pricing b.
Liberalized economy
13. Consider the following:
3. Competitive price c. Public
i. Pricing objectives enterprises
ii. Pricing methods 4. Discriminating price d. Fixed by

Government
iii. Pricing strategies
Codes:
iv. Pricing decisions
abcd
Arrange them in correct sequences:
(A) 1 2 3 4
(A) i, iii, ii, iv
(B) 2 3 4 1
(B) i, iv, iii, ii
(C) 3 4 2 1
(C) ii, i, iv, iii
(D) 4 2 1 3
(D) iv, ii, iii, i
Answer: (B)
Answer: (B)
16. Sample design involves the following:

14. A commodity is used for multiple
purposes, and then the demand for it is i. Sampling unit
known as
ii. Size of samples
(A) Joint Demand
iii.Type of universe
(B) Composite Demand
iv. Sampling procedure
(C) Direct Demand
Which one of the following sequences is
(D) Autonomous Demand correct?
Answer: (B) (A) i, ii, iii, iv, v

(B) iii, iv, i, ii, iv (D) None of the above
(C) iii, i, iv, ii, v Answer: (A)
(D) iii, v, i, iv, ii
Answer: (C) 20. Which of the following software has

application in both Mathematics and
Statistics?
17. Which one of the following is not a (A) SPSS

measure of dispersion?
(B) SAS
(A) Quartile
(C) R
(B) Range
(C) Mean Deviation
Answer: (D)
(D) Standard Deviation
21. Match the following:
Answer: (A)
a. The Practise of Management
1. Henry Fayol
18. If bxy = 0.25 and byx = 0.64, b. Philosophy of

correlation coefficient is www.ne tugc. com Management 2. F.W. Taylor
(A) 0.16 c. Scientific

Management 3. Oliver
(B) 0.40 Sheldon
(C) 0.89 d. General and Industrial Administration

4. Peter F. Drucker
(D) 0.30
Codes:
Answer: (B)
abcd
(A) 1 2 3 4
19. Struge’s rule is used to find out
directly (B) 4 3 2 1
(A) Number of classes in a continuous (C) 4 3 1 2

distribution
(D) 3 4 2 1
(B) Size of class limits
Answer: (B)
(C) Direction of the classification

(A) i, ii, iii, and iv
22. Assertion (A): All decisions taken (B) ii, iii, iv and v
through mental process are rational.
(C) i, iii, iv, and v
Reason (R): Decision making is a mental
process. (D) i, ii, iii and v
(A) (R) is correct, but (A) is not correct Answer: (A)
(B) (A) is correct, but (R) is not correct
(C) Both (A) and (R) are correct 25. Appointment of independent Directors
is the part of Corporate Governance as per
(D) Both (A) and (R) are not correct the
Answer: (A) (A) SEBI
(B) Indian Companies Act
23. Who among the following developed (C) Government of India

the technique of Management by
Exception? (D) RBI
(A) Joseph L. Massie Answer: (A)
(B) Lester R. Bittel
(C) L.F. Urwick 26. A method for achieving maximum

market response from limited marketing
(D) Peter F. Drucker resources by reorganising differences in
the response characteristics of various
Answer: (B) parts of the market is known as
(A) Market targeting
24. Which among the following are parts (B) Market positioning
of job description?
(C) Market segmentation
i. duties performed
(D) Market strategy
ii. Job summary
Answer: (C)
iii. Job identification
iv. Supervision given

27. Who plays their significant role in
v. Delegation of authority distribution of goods when they do not sell
to ultimate users or consumers?

(A) Retailer (A) Aggressive advertising
(B) Wholeseller (B) Ethics in advertising
(C) Mediator (C) Mass level of advertising
(D) Commission agent (D) Sales promotion
Answer: (B) Answer: (B)
28. In Marketing Mix, which four P’s are 31. Arrange the following steps involved
covered? in capital budgeting in order of their
occurrence:
(A) Product, Price, Place, promotion
i. Project selection
(B) Product, Price, Power, Promotion
ii. Project appraisal
(C) Product, Price, Penetration, Promotion
iii. Follow up
(D) Product, Price, Positioning, Promotion
iv. Project execution
Answer: (A)
(A) ii, iii, i, v, iv
(B) iii, ii, i, v, iv

29. Which research includes all types of
researches into human motives when it (C) i, iii, ii, v, iv
refers to qualitative research designed to
uncover the consumer’s sub consciousness (D) i, ii, iii, v, iv
or hidden motivations?
Answer: (B)
(A) Motivational Research
(B) Marketing Research

32. Which method does not consider the
(C) Managerial Research time value of money?
(D) Price Research (A) Net Present Value
Answer: (A) (B) Internal Rate of Return
(C) Average Rate of Return
30. False and misleading claims and (D) Profitability

vulgarity in advertisements do not match
with Answer: (C)

d.
Factoring
33. Which formula is used measure the 4. Arbitrage
degree of Operating leverage?
Codes:
(A) EBIT/sales
abcd
(B) C/EBIT
(A) 4 3 1 2
(C) EBIT/EBT
(B) 3 4 1 2
(D) EBIT/C
(C) 3 2 1 4
Answer: (B)
(D) 4 2 3 1
Answer: (A)
34. Which one is more appropriate for cost
of retained earnings?
(A) Weighted Average Cost of Capital 36. During which plan was the National
Apprenticeship Training Scheme
(B) Opportunity cost to the firm introduced?
(C) Expected rate of return by the investor (A) 1st Five Year Plan
(D) None of the above (B) 2nd Five Year Plan
Answer: (B) (C) 4th Five Year Plan
(D) Annual Plans
35. Match the following with the most Answer: (B)

suitable options.
List-
I 37. Match the following:
List-II
List-I
a. Modigliani-miller approach 1. List-
Commercial paper II
b. Net Operating income a. An ordinary person does not want to

approach 2. Working capital work on his own 1. Hierarchy Theory
c. Short term money market b. An individual is willing to work on his

instrument 3. Capital structure own 2. Hygiene Theory

c. Motivational Factors 39. Which among the following is not a
3. X- voluntary method for prevention and
Theory settlement of disputes?
d. Esteem (A) Collective Bargaining

Needs
4. Y-Theory (B) Standing orders
Codes: (C) Joint Consultation
abcd (D) Works Committee
(A) 1 2 3 4 Answer: (D)
(B) 3 4 1 2
(C) 1 4 2 3 40. Statement-I: It is no better to pay

employees for little than to pay too much.
(D) 3 4 2 1
Statement-II: Competent employees will
Answer: (D) remain competent forever.
(A) Statement I is true, but II is false.
38. Arrange the following staffing (B) Statement II is true, but I is false.
procedures in the correct sequences:
(C) Both Statements I and II are true.
i. Determining sources of Personnel supply
(D) Both Statements I and II are false.
ii. Preparing personal specifications.
Answer: (A)
iii. Selection of personnel.
iv. Determining personnel characteristics

(A) ii, i, iv, iii
a. Credit Control 1. MCA
(B) i, ii, iii, iv
b. Corporate Control 2. SEBI
(C) ii, i, iii, iv
c. IPO Control 3. IRDA
(D) ii, iii, i, iv
d. ULIP Control 4. RBI
Answer: (A)
Codes:
abcd
(A) 4 2 3 1

(B) 4 1 2 3 (D) Ministry of Corporate Affairs
(C) 2 3 4 1 Answer: (B)
(D) 4 1 3 2
Answer: (D) 45. The success of E-banking depends

upon: www.netug c.co m
i. Multi-layer Security System

42. Which one among the following has
not started Commercial Banking? ii. Risk and Surveillance Management
(A) SIDBI iii. Updated Flawless Softwares
(B) IDBI iv. Stringent Legal Frame-work
(C) ICICI (A) i and ii
(D) UTI (B) i,ii, and iii
Answer: (A) (C) ii, iii, and iv
(D) i, ii, iii and iv
43. What is OTP in credit card Answer: (B)

transactions?
(A) Odd Transaction Password

46. International liquidity comprises which
(B) Owner’s Trading Password\ four of the following?
(C) One Time Password i. Gold held by Central Banks.
(D) One Time Pin code ii. Gold held by families.
Answer: (C) iii. Forex Reserve held by Commercial

Banks.
iv. Mineral wealth.

44. The powers of Controller of Capital
Issues of India is now shifted to v. SDRs.
(A) Ministry of Finance vi. Borrowing facilities.
(B) SEBI vii. NRIs FDRs
(C) AMFI viii. Credit facilities available under

SWAP.

(A) i, ii, iii, iv (A) WTO Funds
(B) ii, iii, iv, viii (B) World Bank Group
(C) i,iii, v, viii (C) Export Credit
(D) iii, iv, vii, viii (D) Foreign Direct Investment
Answer: (C) Answer: (A)
47. Which among the following are 49. Which one is called Bretton-Wood
important bodies of WTO? Twins?
i. Dispute Settlement Body. (A) IBRD and IDA
ii. NAFTA (B) IMF and IFC
iii. Trade Policy Review Body. (C) IMF and IBRD
iv. ASEAN (D) IDA and IFC
v. Council for Trade in Goods Answer: (C)
vi. IBRD
vii. Council for Trade related aspects of 50. UNCTAD stands for
Intellectual Property Rights.
(A) United Nations Committee on Tariff
viii. GATT and Development.
An appropriate combination is (B) United Nations Conference on Trade

and Deficit.
(A) i, ii, iii, iv
(C) United Nations Conference on Trade
(B) ii, iii, iv, v and Development.
(C) i, iii, v, vii (D) Union of Nations Cause for Trade and
Development.
(D) iv, v, vi, viii
Answer: (C)
Answer: (C)
51. Which of the following denote the

structural changes in Indian economy?
48. Which one is not the source of
External Finance? (A) Primary sector contribution has gone
down.

(B) Service sector contribution has gone (iii) Success Rate of Marriages
up.
(iv) Standard of Living
(C) Secondary sector has not changed
much. (v) Crime Rate
(D) All of the above (vi) Corruption Level
Answer: (D) (vii) Economic Entitlement
(viii) Foreign Visits
52. Broad Money has to be sensitized Codes :

through:
(A) (i), (ii), (vi) and (viii)
(A) CRR
(B) (i), (ii), (iv) and (vii)
(B) SLR
(C) (ii), (iii), (vi) and (vii)
(C) Repo Rate
(D) (iii), (v), (vii) and (viii)
Answer: (B)
Answer: (D)
55. Public Enterprise is defined as

53. Which one is not an element of legal
environment? (A) An organisation run by joint efforts of
Centre and State Governments.
(A) Act of Parliamentarians in Lok Sabha
(B) An organisation which caters to the
(B) Indian Contract Act, 1872 needs relating to public utilities.
(C) Indian Partnership Act, 1932 (C) An organisation in which capital is

invested by public.
(D) Negotiable instruments Act, 1881
(D) An organisation owned and managed
Answer: (A) by public authorities for definite set of
public purposes.
Answer: (D)
54. Out of the following, which are four
dimensions of Human Development
Index?
56. Match List-I with List-II and select the
(i) Life Expectancy correct answer:
(ii) Literacy Level

List – I List – (D) (i), (ii) and (iii)
II
Answer: (B)
(i) Measurement of income (a)
Accrues to the equity of owners
(ii) Recognition of expense (b) 58. Conversion cost is the sum of

Recognition of revenue
(A) Indirect wages and factory overhead
(iii) Basis of realization (c)
Matching revenue with expenses (B) Direct wages, direct expenses and
factory overhead
(iv) Identification of revenue (d)
Accounting period (C) Direct material cost and indirect wages
Codes : (D) Prime cost and selling & distribution

overhead
(i) (ii) (iii) (iv)
Answer: (B)
(A) (a) (b) (c) (d)
(B) (b) (a) (c) (d)

59. (A) Assertion: Premium received on
(C) (c) (d) (a) (b) issue of shares is credited to share
premium account but not to Profit and
(D) (c) (d) (b) (a) Loss account. www.netugc.c om
Answer: (D) (R) Reasoning: Since share premium is not

a trading profit, it is not distributed to
shareholders.
57. Consider the following items: (A) Both (A) and (R) are true but (R) is not
correct explanation to (A).
(i) Debentures
(B) (A) is false but (R) is correct.
(ii) Prepaid rent
(C) Both (A) and (R) are true and (R) is
(iii) Interest accrued correct explanation of (A).
(iv) Bank overdraft (D) (A) is correct but (R) is false.
Which of them are current liabilities? Answer: (C)
(A) (i), (ii), (iii) and (iv)
(B) (iv) 60. Consider the following:
(C) (ii), (iii) and (iv) (i) Basic defensive and interval ratio

(ii) Current ratio (D) only (i)
(iii) Superquick ratio Answer: (B)
(iv) Quick ratio Arrange these ratios in

sequence to reflect the liquidity in
descending order. 63. Assertion (A): Total utility will be
maximum when marginal utility to price of
(A) (ii), (iv), (iii) and (i) respective products are equal.
(B) (i), (ii), (iv) and (iii) Reason (R): Deviation from this situation
leads to reduction in maximum utility.
(C) (iv), (ii), (iii) and (i)
(A) (A) and (R) are not correct.
(D) (iii), (iv), (i) and (ii)
(B) (A) is correct but (R) is not correct.
Answer: (A)
(C) (A) and (R) are correct.
61. Normally Demand curve slopes
(D) (A) is incorrect, (R) is correct.
(A) Upward
Answer: (C)
(B) Downward
(C) Horizontal
64. Match List-I with List-II and select the
(D) Vertical correct answer.
Answer: (B) List – I List –

II
(i) Survival (a)

62. Which of the following refers to Economic Objective
Perfect Competition?
(ii) R.O.I (b)
(i) There are restrictions on buyers and Natural Urge
sellers
(iii) Growth (c)
(ii) There are no restrictions on movement Business Purpose
of goods
(iv) Innovation (d)
(iii) There are no restrictions on factors of Primary Objective
production Correct one is
Codes :
(A) only (i) and (ii)
(a) (b) (c) (d)
(B) only (ii) and (iii)
(A) (ii) (iii) (iv) (i)
(C) only (i) and (iii)

(B) (ii) (i) (iii) (iv)
(C) (i) (ii) (iii) (iv) 67. Classification of respondents only on

the basis of gender is an application of
(D) (iv) (iii) (ii) (i)
(A) Ordinal scale
Answer: (A)
(B) Nominal scale
www.netugc.c om
(C) Interval scale

65. Consider the oligopoly models:
(D) Ratio scale
(i) Sweezy’s kinked demand curve model
Answer: (B)
(ii) Newman and Morgenstern Game
Theory model
(iii) Cournal’s duopoly model 68. Karl Pearson’s co-efficient of

correlation between two variables is
(iv) Baumal’s sales maximization model
Arrange them in correct sequence as per (A) the product of their standard deviations
order of evolution.
(B) the square root of the product of their
Codes : regression co-efficients
(A) (iv), (iii), (ii), (i) (C) the co-variance between the variables
(B) (ii), (i), (iii), (iv) (D) None of the above
(C) (iii), (i), (ii), (iv) Answer: (B)
(D) (i), (iii), (ii), (iv)
Answer: (C) 69. Statistical software packages for

research in social sciences include
(A) SPSS
66. Which of the following is not a
restricted random sampling technique? (B) STATA
(A) Stratified sampling (C) MiniTab
(B) Simple random sampling (D) All of the above
(C) Systematic sampling Answer: (D)
(D) Multistage sampling
Answer: (B)

70. F-test is used to test the significance of (i) Selecting the best course of action
the differences between/among
(ii) Establishing the sequence of activities
(A) Two sample mean
(iii) Establishment of objectives
(B) More than two samples mean
(iv) Evaluating alternative courses
(C) Variance of two samples
(v) Determining alternative courses
(D) (B) and (C)
(A) (i), (ii), (iii), (iv) and (v)
Answer: (D)
(B) (iii), (v), (iv), (ii) and (i)
71. Match the following
(C) (v), (iv), (iii), (ii) and (i)
List-I
List-II (D) (iii), (v), (iv), (i) and (ii)
(i) The Practice of Answer: (D)

Management (a) Henry Fayol
(ii) Philosophy of Management

(b) F.W. Taylor 73. Assertion (A) : One can be sure about
future course of actions by making good
(iii) Scientific plans.
Management (c) Oliver
Sheldon Reasoning (R) : Planning brings certainty
in future course of actions of an
(iv) General and Industrial organisation.
Administration (d) Peter F Drucker
(A) (R) is correct but (A) is not correct.
Codes :
(i) (ii) (iii) (iv)
(C) Both (A) and (R) are correct.
(A) (a) (b) (c) (d)
(D) Both (A) and (R) are not correct.
(B) (d) (c) (b) (a)
Answer: (A)
(C) (d) (c) (a) (b)
(D) (c) (d) (b) (a)

74. According to Kieth Devis, which one
Answer: (B) is not a barrier of communication?
(A) Physical Barriers
72. Identify the correct sequence of steps (B) Technological Barriers

involved in planning:

(C) Personal Barriers (B) Operating marketing
(D) Linguistic Barriers (C) Green marketing
Answer: (B) (D) All of the above
Answer: (C)
75. While establishing relation between

Maslow’s and Herzberg’s theories, which
Needs of Hierachy Theory will fall under 78. All the activities involved in selling
the Hygiene Factors? goods or services directly to final
consumers for personal non-business uses
(A) Self actualisation, esteem and social are done by
needs
(A) Wholesalers
(B) Esteem, social and safety needs
(B) Retailers
(C) Social, safety and physiological needs
(C) Mediators
(D) Only social needs
(D) Commission Agents
Answer: (C)
Answer: (B)
76. Howard-Sueth model of consumer

behaviour is popularly known as 79. To manage a business well is to
manage its future and to manage the future
(A) Machine Model is to manage information is termed as
(B) Human Model (A) Management information system
(C) Marketing Model (B) Marketing information system
(D) Purchase Model (C) Future information system
Answer: (A) (D) General information system
Answer: (A)
77. To generate and facilitate any

exchange intended to satisfy human needs
or wants such that the satisfaction of these 80. DAGMAR approach in marketing is
wants occur with minimal detrimental used to measure
impact on the natural environment is
known as (A) Public relations
(A) Aggressive marketing (B) Advertising results

(C) Selling volume (D) None of the above
(D) Consumer satisfaction Answer: (B)
Answer: (D)
84. Cost of capital from all the sources of

funds is called
81. Which one is not an important
objective of Financial Management? (A) Specific cost
(A) Profit Maximisation (B) Composite cost
(B) Wealth Maximisation (C) Implicit cost
(C) Value Maximisation (D) Simple Average cost
(D) Maximisation of social benefits Answer: (A)
Answer: (D)
85. Match the following with most suitable

option:
82. Which one refers to cash inflow under
payback period method? (a) Modigiliani- Miller Approach
(i) Commercial papers
(A) Cash flow before depreciation and
taxes (b) Net Operating Income
Approach (ii) Working Capital
(B) Cash flow after depreciation and taxes Management
(C) Cash flow after depreciation but before (c) Short term Money Market
taxes Instrument (iii) Capital Structure
(D) Cash flow before depreciation and (d) Factoring

after taxes (iv)
Arbitrage
Answer: (B)
Codes :
(a) (b) (c) (d)

83. The concept of present value is based
on the : (A) (iv) (iii) (i) (ii)
(A) Principle of compounding (B) (iii) (iv) (i) (ii)
(B) Principle of discounting (C) (iii) (ii) (i) (iv)
(C) (A) and (B) (D) (iii) (ii) (iv) (i)

Answer: (B)
88. Which of the following are covered

under the scope of Human Resource
86. Which four are the factors influencing Management?
the Human Resource Management of an
organisation? (i) Forecasting Human Resource Needs
(i) Size of workforce (ii) Replacement Planning
(ii) Employee Expectations (iii) Human Resource Dynamics
(iii) Composition of workforce (iv) Human Resource Development

Planning
(iv) Political influence
(v) Human Resource Audit
(v) Changes in technology
(A) (i), (iii), (v)
(B) (i), (ii), (iii), (iv)
(B) (i),(ii), (iii) and (v)
(C) (iii), (v)
(C) (i), (ii), (iv) and (v)
(D) (i), (ii), (iii), (iv), (v)
(D) (i), (iii), (iv) and (v)
Answer: (D)
Answer: (C)
89. On which of the following, at the

87. Assertion (A): One can not be sure initial stage, the Indian IT companies
about the quality of appraisal on the basis relying more for getting good IT
of length of service. professionals?
Reasoning (R): Initial appraisal and (A) Job Portals

promotional appraisal are done separately
and differently since the length of service (B) Placement Agencies
is different.
(C) Campus Placement
(A) (R) is correct but (A) is not correct.
Answer: (C)
(C) (A) and (R) both are correct.
(D) (A) and (R) both are not correct.

90. Statement (i): Labour always get a
Answer: (D) major share of productivity gains.

Statement (ii): Partial stoppage of work by (A) (iv), (iii), (ii), (i), (v)
workers amounts to strike.
(B) (v), (iv), (iii), (ii), (i)
(A) Statement (i) is true but (ii) is false.
(C) (i), (ii), (iii), (v), (iv)
(B) Statement (ii) is true but (i) is false.
(D) (i), (v), (ii), (iv), (iii)
(C) Both statements are true.
Answer: (A)
(D) Both statements are false.
Answer: (B)
93. In India, the Commercial Banks are
given license of operation by
91. Imperial Bank was established on (A) The Government of India

January 27, 1921 on the advise of
(B) The Ministry of Finance
(A) J. M. Keynes
(C) Reserve Bank of India
(B) Lord Illingworth
(D) Banking Companies Regulation Act,
(C) King George V 1949
(D) Winston Churchill Answer: (C)
Answer: (A)
94. The provisions of General Reserve in

Banking Companies are made keeping in
92. Read the following events: view the provisions of
(i) Allowing convertibility of rupee at the (A) Indian Companies Act, 1956
market rate in the current account
(B) Banking Companies Act, 1949
(ii) Nationalisation of general insurance
business (C) SEBI Act, 1992
(iii) Establishment of IDBI (D) Statutory Auditor www.netugc.co m
(iv) Nationalisation of life insurance Answer: (B)

business
(v) Capital adequacy norms for

commercial banks 95. Which among the following is not true
with regard to merchant banker?
Arrange the events in the ascending order
of their occurrence: (i) It can accept deposits.

(ii) It can advance loans. 98. EPCG denotes
(iii) It can do other banking activities. (A) Export Potential and Credit Guarantee
(iv) It can be manager to a public issue. (B) Earning Promotion and Credit
Guarantee
(A) (i), (ii) and (iii)
(C) Export Promotion and Credit
(B) (ii), (iii) and (iv) Guarantee
(C) (i), (iii) and (iv) (D) Export Potential and Credit Goods
(D) (ii) and (iv) Answer: (C)
Answer: (A)
99. Which one of the following matches

correspond to the Member and Observer
96. Balance of Payments can be made countries of the SAARC?
favourable if
(i) India, Pakistan, Bangladesh, Bhutan,
(A) Exports are increased Nepal, Sri Lanka, Afghanistan, Maldive
(B) Imports are increased (ii) Iran, China, Japan, USA, South Korea,
European Union
(C) Devaluation of money
(iii) Pakistan, Nepal, India, Bangladesh,
(D) (A) and (C) Iran
Answer: (D) (iv) UK, USA, North Korea, South Africa
(A) (iii) and (iv)
97. Which one is not an objective of IMF? (B) (ii) and (iv)
(A) To promote international monetary co- (C) (i) and (ii)

operation
(D) (ii) and (iii)
(B) To ensure balanced international trade
Answer: (C)
(C) To finance productive efforts
according to peace-time requirement
(D) To ensure exchange rate stability 100. Which one is not an international
organisation?
Answer: (C)
(A) SAARC
(B) ASEM

(C) ASEAN (a) (b) (c) (d)
(D) CBDT (A) (iv) (i) (ii) (iii)

Ans- d
(B) (iii) (iv) (i) (ii)
(C) (i) (ii) (iii) (iv)

MOCK TEST - 3
(D) (iv) (iii) (ii) (i)
Answer: (B)
1. Output segments of Artificial Intelligence
programming contain(s)
a) Printed language and synthesized speech
b) Manipulation of physical object
c) Locomotion 3. Kyoto Protocol pertains to
d) All of the mentioned
(A) Capital formulation
Answer: (d)
(B) Globalisation
(C) Environmental protection

2. Match the items of List – I with the
items of List – II: (D) Unemployment reduction
List – I Answer: (C) www.netugc. com
List – II
(a) National Manufacturing 4. Uruguay Round pertains to

Competitiveness Council
(NMCC) (i) Industrial (A) WTO
Licensing Policy
(B) IMF
(b) National Investment Fund
(NIP) (C) GATT
(ii) Eleventh Five
(D) World Bank
Year Plan
Answer: (C)
(c) The Industries (Development and
Regulation) Act (IDRA), 1951 (iii)
The Competition Act, 2002
5. Which of the following are outside the
(d) Increase in scope of the Consumer Protection Act,
Employment 1986?
(iv) Public Sector
Undertakings (A) Newspaper industry
Codes:

(B) Services provided under contract of SHRDLU
personal service b) SIMD
c) BACON
d) STUDENT
(C) Banking industry
Answer: (a)
(D) Both (A) and (B)
Answer: (B)
9. If there is mutual indebtedness between
the transferor company and the transferee
company in business combination, which
6. Which of the following is ‘true’
of the following is correct?
regarding the Prudence Principle of
Accounting?
(A) No adjustment is required in the books
of the transferor company.
(A) Taking care of the future losses
(B) Adjustment is required in the books of
(B) Taking care of the future profits
the transferor company.
(C) Taking care of bad debts
(C) No adjustment is required in the books
of the transferee company.
(D) Taking care of inventory and
depreciation
Answer: (A)
Answer: (A)
7. Which of the following is a non-

10. Improvement of profit-volume ratio
operating expense?
can be done by
(A) Salary of Managing Director
(A) Increasing selling price
(B) Depreciation
(B) Altering sales mixture
(C) Advertisement expenditure
(C) Reducing variable cost
(D) Interest on loan
Answer: (D)
Answer: (D)
11. Business Economics is a subject which

8
(A) Studies economic relationships
An Artificial Intelligence system
(B) Studies economic activities at the
developed by Terry A. Winograd to permit
aggregate level
an interactive dialogue about a domain he
called blocks-world.

(C) Deals with the tools of economics used 13. Assertion (A): The demand curve has
for decision making in business negative slope showing inverse
relationship between price and the quantity
(D) Studies optimum allocation of limited demanded.
resources
Reason (R): This applies only to Giffen
Answer: (C) goods.
Codes:
12. Match List – I with List – II and select (A) Both (A) and (R) are true.
the correct code for the answer:
(B) (A) is true, but (R) is false.
List – I
(C) (A) is false, but (R) is true.
List – II
(D) Both (A) and (R) are false.
(a) Cross elasticity is
zero (i) Price = Answer: (B)
AVC
(b) Shut-down
point (ii) 14. The consumer is said to be in
Two commodities are independent equilibrium when he plans his expenditure
on x, y and z commodities in such a way
(c) Slutsky that he ultimately attains:
theorem
(iii) Transformation line (A) MUx = MUy = Mz
(d) Production Possibility (B) MUx / Px = MUy / Py= MUz / Pz

Curve (iv) Substitution
effect (C) MUx / Px = MUy / Py = MUz / Pz =
MUm
Codes:
(D) MUx / Px < MUy / Py < MUz / Pz <
(a) (b) (c) (d) MUm
(A) (ii) (iv) (i) (iii) Answer: (C)
(B) (iii) (ii) (iv) (i)
(C) (i) (iii) (ii) (iv) 15. Match the items in List – I with those
in List – II and select the correct code for
(D) (ii) (i) (iv) (iii) the answer:
Answer: (D) List – I
List – II www.netugc.co m

(a) Monopoly (c) Thomas
(i) Baye’s
Price Taker (iii) Correlation Coefficient
(b) Monopolistic (d) Karl Gauss

competition (ii) (iv)
Homogeneous product’s price maker Index Numbers
(c) Perfect Codes:

competition
(iii) Heterogeneous product (a) (b) (c) (d)
(d) Oligopoly (A) (iv) (iii) (ii) (i)

(iv)
Price Rigidity (B) (iv) (iii) (i) (ii)
Codes: (C) (iv) (ii) (iii) (i)
(a) (b) (c) (d) (D) (iv) (ii) (i) (iii)
(A) (ii) (iii) (i) (iv) Answer: (B)
(B) (i) (ii) (iv) (iii)
(C) (iii) (iv) (ii) (i) 17. The law of statistics, which says
‘Moderately large number of items chosen
(D) (iv) (i) (iii) (ii) at random from a large group possess the
characteristics of the large group’, is
Answer: (A) referred to as:
(A) The Central Limit Theorem
16. Match the following items in List – I (B) The Law of Statistical Regularity
with most suitable options in List – II:
(C) The Law of Inertia of Large Numbers
List – I
List – II
Answer: (B)
(a) Fisher
(i) Inverse probability

18. A distribution, where the value of
(b) Karl Pearson arithmetic mean is maximum as compared
(ii) to median and mode, is
Normal Distribution
(A) Normal distribution
(B) Positively-skewed distribution

(C) Negatively-skewed distribution (b) Element of a communication
event (ii) Development of
(D) None of these ‘will’ to work
Answer: (B) (c) Objective of organisational

communication (iii) Thinking
(d) Goals of organisational

19. The most appropriate average to be communication (iv) Purpose
used to compute the average rate of growth
in population is Codes:
(A) Arithmetic mean (a) (b) (c) (d)
(B) Median (A) (i) (ii) (iii) (iv)
(C) Geometric mean (B) (iii) (iv) (ii) (i)
(D) Harmonic mean (C) (ii) (iii) (i) (iv)
Answer: (C) (D) (iv) (iii) (ii) (i)
Answer: (B)
20. “The life expectancy of people in

Kerala is more than that of Tamil Nadu.”
This statement is an example of 22. According to the Boston Consulting
Group, a business which has a high growth
(A) Descriptive Hypothesis rate but a weak market share is referred to
as a
(B) Causal Hypothesis
(A) Cash Cow
(C) Correlational Hypothesis
(B) Dog
(C) Question Mark
Answer: (C)
(D) Star
items of List – II and choose the correct Answer: (C)
answer:
List – I
23. ‘No ideas are ever criticized’ and ‘the
List – II more radical the ideas are the better’ – are
the rules of which decision making
(a) Intrapersonal process?
communication (i)
Information sharing (A) Programmed decision-making

(B) Non-programmed decision making (C) Customer satisfaction
(C) Brainstorming www.n etu gc.co m (D) Socially-responsible marketing
(D) Group discussion Answer: (C)
Answer: (C)
27. Which of the legislations listed below

do not form part of the marketing
24. According to McClelland’s Needs environment of India?
Theory, which of the following is not a
motivating need? (A) The Drugs and Cosmetics Act, 1940
(A) Need for Power (B) The Prevention of Food and

Adulteration Act, 1954
(B) Need for Security
(C) The Monopolies and Restrictive Trade
(C) Need for Achievement Practices Act, 1969
(D) Need for Affiliation (D) Both (B) and (C)
Answer: (B) Answer: (D)
25. In the managerial grid, developed by 28. The set of all actual and potential
Blake and Mouton, a manager who has buyers of a product is known as
high consideration for production but little
concern for people is known as (A) Customer group
(A) 1.1 Management (B) Industry
(B) 1.9 Management (C) Market
(C) 9.1 Management (D) None of the above
(D) 5.5 Management Answer: (C)
Answer: (C)
29. In the model of consumer behaviour

given by Philip Kotler, what constitutes
26. Which of the following is not the the marketing stimuli?
major component of holistic marketing?
(A) Marketing environment
(A) Relationship marketing
(B) Four P’s of marketing
(B) Integrated marketing

(C) Consumer needs and wants (D) Fixed Assets Coverage Ratio
(D) None of the above Answer: (B)
Answer: (B)
33. Which one of the following is the most

popular method for estimating the cost of
30. The factor that exerts the broadest and equity?
deepest influence on consumer behaviour
is (A) Capital asset pricing model
(A) Culture (B) Dividend yield method
(B) Sub-culture (C) Gordon’s dividend discount model
(C) Social class (D) Earnings yield method
(D) Income Answer: (A)
Answer: (A)
34. Which one of the following is not the

internal factor affecting the weighted
31. Which one of the following is not average cost of capital of a firm?
among the assumptions of the Modigliani-
Miller model? (A) Investment policy of the firm
(A) Perfect capital market (B) Capital structure of the firm
(B) Equivalent risk classes (C) Dividend policy followed
(C) Unity for dividend payout ratio (D) Market risk premium for the firm
(D) Absence of taxes Answer: (D)
Answer: (C)
35. Most common approach for analysing

the capital structure of a firm is
32. The most suitable coverage ratio for
deciding the debt capacity of a firm is (A) Ratio Analysis
(A) Interest Coverage Ratio (B) Cash Flow Analysis
(B) Cash Flow Coverage Ratio (C) Comparative Analysis
(C) Debt Service Coverage Ratio (D) Leverage Analysis

Answer: (C) (A) (i), (ii), (iii), (iv)
(B) (i), (iii), (v)
36. Who propounded “Theory Z”? (C) (ii), (iii), (iv)
(A) William Ouchi (D) (i), (ii), (iii), (iv), (v)
(B) Peter F. Drucker Answer: (B)
(C) Joseph H. Jurau
(D) Douglas McGregor 39. The idea that a manager tends to be

promoted to the level of his incompetence
Answer: (A) is referred to as
(A) The advancement principle
37. Another name for MATRIX (B) The Parkinson’s law

organisation is
(C) The Peter principle
(A) Flexible organisation
(D) The job design principle
(B) Geographic organisation
Answer: (C)
(C) Project organisation

40. Assertion (A): The emphasis in
Answer: (C) industrial psychology has shifted from the
studies of the isolated individual and the
physical environment to the consideration
of motivation and morale.
38. Which of the following are methods of
on-the-job training? Reason (R): A motivated employee with a
high morale will always give high
(i) Coaching productivity.
(ii) Vestibule training Codes:
(iii) Demonstration (A) Both (A) and (R) are correct, and (R)
is the right explanation of (A).
(iv) Role-playing
(B) (A) is correct, but (R) is not correct.
(v) Apprenticeship training
(C) Both (A) and (R) are incorrect.
Select the right answer from the following
codes: (D) Both (A) and (R) are correct, but (R) is
not the right explanation of (A).

Answer: (B) (ii) Providing remittance facilities
(iii) Underwriting of securities
41. Match the following items of List – I (iv) Advancing clean credit
and List – II in terms of functions of
commercial banks: (v) Allowing overdrafts on current account
List – I (vi) Purchase and sale of securities
List – II Codes:
(a) Letter of (A) (i), (ii), (iii) and (iv)

reference
(i) Advancing loans (B) (iii), (iv), (v) and (vi)
(b) Sale of gold (C) (i), (ii), (iii) and (vi)

coins
(ii) Receiving deposits (D) (ii), (iii), (v) and (vi)
(c) Recurring Answer: (C)

Account
(iii) Non-banking function
(d) Overdrafts 43. Call money rate is applicable for a very

short period to
(iv) Agency function
(A) Inter bank advances
Codes:
(B) Bank to Reserve Bank advances
(a) (b) (c) (d)
(C) Reserve Bank to Bank advances
(A) (i) (ii) (iii) (iv)
(D) Commercial Banks to Industrial Banks
(B) (iv) (iii) (ii) (i) advances
(C) (iv) (ii) (iii) (i) Answer: (A)
(D) (i) (iii) (ii) (iv)
Answer: (B) 44. Match the following List – I with List

– II:
List – I (Name of
42. Which of the following are included Securities) List – II (Type
under representation functions of a bank? of Securities)
(i) Payment of cheques and bills

(a) Bonds of Land Development Answer: (D)
Banks (i) Semi-Government
Securities
(b) Treasury 46. Match the following List – I with List

Bills (ii) First – II and select the correct answer:
Order Securities
List – I
(c) Shares of a Public Ltd.
Co. (iii) Personal Securities List – II
Codes: (a) Comparative Cost Theory of

International Trade (i) Gottfried
(a) (b) (c) Haberler
(A) (i) (ii) (iii) (b) International Trade Theory of

Opportunity Cost (ii) J.S. Mill
(B) (ii) (i) (iii)
(c) Factor Endowment Theory of
(C) (iii) (ii) (i) International Trade (iii) David
Ricardo
(D) (i) (iii) (ii)
(d) Doctrine of Reciprocal
Answer: (A) Demand (iv)
Hecksher-Ohlin
Codes:
45. Reserve Bank of India controls the
activities of some of the following banks (a) (b) (c) (d)
in India:
(A) (iii) (ii) (iv) (i)
(i) Commercial Banks
(B) (i) (iii) (ii) (iv)
(ii) Cooperative Banks
(C) (iii) (i) (iv) (ii)
(iii) Foreign Banks
(D) (ii) (i) (iv) (iii)
(iv) Rural Banks
Answer: (C)
Codes:

47. Identify the one, from the following,
(B) (i), (iii) and (iv) which is not a type of disequilibrium in the
balance of payments of a country:
(C) (ii), (iii) and (iv)
(A) Cyclical disequilibrium
(D) (i), (ii), (iii) and (iv)
(B) Secular disequilibrium

(C) Structural disequilibrium (A) Ethnocentric firm
(D) Sectoral disequilibrium (B) Polycentric firm
Answer: (D) (C) Geocentric firm
48. The participants who take advantage of Answer: (C)

different exchange rates in different
markets are
(A) Speculators
51. Direct supervision over depositories
(B) Arbitrageurs and mutual funds is undertaken by
(C) Hedgers (A) NBFCs
(D) Investors (B) RBI
Answer: (B) (C) SEBI
49. Assertion (A): The liability of the Answer: (C)

option buyer is limited in the currency
options market.
Reason (R): Option buyer need not 52. In the call/notice money market, which
exercise the option if the exchange rate is of the following participants is allowed to
not favourable for him. trade?
Codes: (A) All Banks, Primary Dealers and

Mutual Funds
(A) (R) is correct and (A) is wrong.
(B) All Corporates
(B) (A) is correct and (R) is wrong.
(C) Only Commercial Banks
(C) Both (A) and (R) are correct.
(D) Both (A) and (R) are wrong.
Answer: (C)
Answer: (C)
53. Match the items of List-I with the

50. An MNC that maintains a balance items of List-II and select the correct
between the home market and host market answer:
oriented policies is

List – I Answer: (C)
List – II
(i) Private ownership and Free Enterprise. 55. Who is Chairman of 15th Finance
(a) Commission?
Secondary Market
(A) Dr. C. Rangarajan
(ii) Government ownership and Central
Authority. (b) (B) Mr. Vimal Jalan
Capitalism
(C) Dr. Vijay C. Kelkar
(iii) The market for the sale and purchase
of previously issued securities. (c) (D) Nand kishore singh
Primary Market
Answer: (d)
(iv) The market for new long term capital.
(d)
Socialism
56. Insurance expenses paid to bring an
Codes: equipment from the place of purchase to
the place of installation is a type of
(i) (ii) (iii) (iv)
(A) Revenue expenditure
(A) (b) (d) (a) (c)
(B) Capital expenditure
(B) (a) (b) (c) (d)
(C) Deferred revenue expenditure
(C) (b) (d) (c) (a)
(D) Operating expense
(D) (a) (c) (b) (d)
Answer: (B)
Answer: (A)
57. Is there any relationship between

54. The apex consumer court in India is specification limits and control limits of x and
referred to as R charts?
a) Yes, Specification limits = Control limits
b) Yes, Control limits=Specification limits/2
(A) The Consumer Education and c) No
Research Centre. d) Yes, Control limits*0.5 = Specification
limits
(B) The Consumer Unity and Trust
Society. Answer: (C)
(C) National Consumer Disputes Redressal Explanation: There is no certain relationship

Commission. defined; between the control limits of x and
R charts and the specification limits of any
(D) None of the above quality characteristic.

Answer: (C) www.netugc. com
58. In a reconstruction scheme, the 61. Assertion (A): Want-satisfying power

reduction of capital may take the form of of a commodity is called its utility.
(A) Reducing the liability of the Reason (R): Utility may not have the
shareholders in respect of any unpaid characteristic of morality.
amount on the shares held by them.
Codes:
(B) Paying-off any paid-up share capital
which is in excess of its requirement. (A) Both (A) and (R) are correct.
(C) Cancelling any paid-up share capital (B) (A) is correct, but (R) is not correct.
which is lost or unrepresented by available
assets. (C) Both (A) and (R) are not correct.
(D) All of the above. (D) (R) is correct, but (A) is not correct.
Answer: (D) Answer: (A)
59. While determining the normal rate of 62. Match the items of List-I with those in
return for the valuation of shares in Market List-II and select the correct code for the
Value Method, which of the following answer:
should be taken into consideration?
List – I List –
(A) The degree of risk involved. II
(B) The current rate of interest on gilt- (a) Contraction of Demand (i)
edged securities. Non-Price change effect
(C) Weighted average cost of capital. (b) Decrease in Demand (ii)

Demand curve remains the same
(D) All of the above.
(c) Increase in Demand (iii)
Answer: (D) Price change effect
(d) Expansion of Demand (iv)

Shifts the Demand curve
60. Master budget is a
Codes:
(A) Functional Budget
(a) (b) (c) (d)
(B) Operating Budget
(A) (iii) (i) (iv) (ii)
(C) Summary Budget
(B) (iv) (iii) (ii) (i)
(D) Financial Budget

(C) (i) (ii) (iii) (iv) Codes:
(D) (ii) (iv) (i) (iii) (a) (b) (c) (d)
Answer: (A) (A) (ii) (iii) (iv) (i)
(B) (iii) (iv) (i) (ii)
63. Assertion (A): As the proportion of (C) (iv) (i) (ii) (iii)
one variable factor in a combination with
fixed factor is increased, after a point the (D) (i) (ii) (iii) (iv)
marginal product of the factor will
diminish. Answer: (C)
Reason (R): Beyond the level of optimum

combination of inputs leads to this.
65. Price, Marginal Revenue and Elasticity
Codes: are related to each other. When e = 1, then:
(A) (R) is appropriate reason of (A). (A) MR > 0
(B) (R) is not appropriate reason of (A). (B) MR < 0
(C) (A) and (R) are not related with each (C) MR = 0
other.
(D) MR = 1
(D) (A) is independent of (R).
Answer: (C)
Answer: (A)
66. Consider the following statistical tests:

items of List-II and select the correct (i) ‘F’ test
answer.
(ii) ‘t’ test
List – I List – II
(iii) ‘z’ test
(a) Indifference Curve (i) Slopes
downward to the right (iv) ‘Chi-square’ test
(b) Demand Curve (ii) Which of these are parametric tests?

P=AR=MR=d
(A) (i), (ii) and (iv)
(c) Perfect Competition (iii)
Oligopoly (B) (i), (iii) and (iv)
(d) Price Leadership (iv) Convex (C) (i), (ii) and (iii)
to the origin

(D) (ii), (iii) and (iv) (A) (d) (c) (a) (b)
Answer: (C) (B) (c) (d) (b) (a)
(C) (c) (b) (d) (a)
67. The difference between sample statistic (D) (d) (b) (c) (a)
and its corresponding population
parameter is Answer: (B)
(A) Sampling error
(B) Measurement error 69. Kendall’s co-efficient of concordance

is used to
(C) Coverage error
(A) Test the difference among two or more
(D) Non-response error sets of data.
Answer: (A) (B) Test the relationship between

variables. www.n etu gc.co m
(C) Test the variations in the given data.

68. Match the items in List-I with items in
List-II. (D) Test the randomness of samples.
List – I Answer: (B)
List – II
(i) Level of significance 70. Which of the following softwares are

used for data processing?
(a) Sample mean is equal to
population mean (i) EXCEL
(ii) Standard deviation of sampling (ii) ACCESS

distribution (b)
Parameters (iii) SPSS
(iii) Numerical value that describes the (iv) STAR

characteristic cs of the population (c)
Type-I error (v) PASW
(iv) Normally distributed population Codes:

(d)
Standard error (A) (i), (ii), (iii) and (v)
Codes: (B) (ii), (iii), (iv) and (v)
(i) (ii) (iii) (iv) (C) (iii) and (iv)

(D) (i), (iii) and (iv) Explanation – this theory is given by
David McClelland
Answer: (A)

items of List-II and select the correct 73. Assertion (A): When span of control is
answer. wide co-ordination and control becomes
difficult.
Reason (R): In a narrow span, levels of
(i) Grapevine (a) Taskgroup authority reduce.
(ii) Formal group (b) Field force Codes:

theory
(A) Both (A) and (R) are true and (R) is
(iii) Informal group (c) Gossip the correct explanation of (A).
(iv) Kurt Lewin (d) National group (B) Both (A) and (R) are true, but (R) is
not a correct explanation of (A).
Codes:
(C) (A) is true, but (R) is false.
(i) (ii) (iii) (iv)
(D) (A) is false, but (R) is true.
(A) (c) (a) (d) (b)
Answer: (C)
(B) (d) (c) (b) (a)
(C) (a) (b) (c) (d)

74. The general pattern of behaviour,
(D) (b) (a) (d) (c) shared belief and values that members
have in common is known as
Answer: (A)
(A) Organisation climate
(B) Organisation culture

72. Who has suggested that achievement
motivation among individuals and nations (C) Organisation effectiveness
can be developed through training
courses? (D) Organisation matrix
(A) MeClelland Answer: (B)
(B) Alderfer
(C) Maslow 75. Which of the following is not a

principle of management according to
(D) None of these Henri Fayol?
Answer: (No option is correct) (A) Subordination of individual interest

over the organisational interest

(B) Esprit de corps. (B) Shopping goods
(C) Unity of Managers (C) Speciality goods
(D) Unity of Direction (D) Unsought goods
Answer: (C) Answer: (D)
76. Which of the following concepts is 79. Match the items of List-I with those of
based on development, design and List-II and select the correct answer from
implementation of marketing programmes, the codes given below:
processes and activities that recognise their
breadth and interdependence? List – I
List –
(A) Product concept II
(B) Sales concept (a) Everitt M. Rogers

(i) Service Quality
(C) Societal marketing concept Model
(D) Holistic marketing concept (b) J.D. Power

(ii) Three
Answer: (D) types of marketing for services
(c) Parasuraman, Zeithaml and Berry

(iii) Quality rating of automobiles
77. The concept of marketing-mix,
consisting of the 4 P’s of marketing, was (d) Gronroos
developed by (iv)
Diffusion of innovation
(A) E. Jerome McCarthy
Codes:
(B) Peter F. Drucker
(a) (b) (c) (d)
(C) Philip Kotler
(A) (iii) (ii) (i) (iv)
(D) William J. Stonton
(B) (i) (ii) (iii) (iv)
Answer: (A)
(C) (ii) (i) (iv) (iii) www. netu gc.co m
(D) (iv) (iii) (i) (ii)

78. The selling concept is most likely to be
used by firms which sell Answer: (D)
(A) Convenience goods

80. Consumer attitudes and beliefs about (A) Long term Capital Funds
diet, health and nutrition are influenced by
(B) Government Assistance
(A) Economic environment
(C) Internal Financing
(B) Cultural environment
(D) Short term loans from Banks
(C) Social environment
Answer: (A)
(D) Natural environment
Answer: (B)
84. The appropriate ratio for indicating
liquidity crisis is
81. Positive NPV in project appraised by a (A) Operating ratio

firm may not occur an account of
(B) Sales turnover ratio
(A) Economics of scale
(C) Current ratio
(B) Market reach
(D) Acid test ratio
(C) Product differentiation
Answer: (D)
(D) Intangible benefits
Answer: (D)
85. Who proposed a model to apply
economic order quantity concept of
inventory management to determine the
82. In case the projects are divisible under optimum cash holding in a firm?
capital rationing an appropriate project
appraisal method is (A) Keith V. Smith
(A) Net Present Value Method (B) Miller and Orr
(B) Profitability Index Method (C) William J. Baumol
(C) Internal Rate of Return Method (D) J.M. Keynes
(D) Payback Period Method Answer: (C)
Answer: (B)
86. Which of the following is not included

in the model of the systems approach to
83. Permanent working capital is generally Human Resource Management?
financed through
(A) Human Resource Planning

(B) Recruitment and Selection (A) Statement (i) is true, but (ii) is false.
(C) Performance appraisal (B) Statement (ii) is true, but (i) is false.
(D) Departmentation (C) Both statements are true.
Answer: (D) (D) Both statements are false.
Answer: (C)
87. It is generally easy to measure the

performance of the
90. Out of the following, which are the
(A) Industrial Relations Manger schemes of Social Security?
(B) Research and Development Manager (i) Provident Fund Scheme
(C) Sales person (ii) Health Insurance Scheme
(D) All of the above (iii) Job Guarantee Scheme
Answer: (C) (iv) Maternity Benefit Scheme
(v) Merit Promotion Scheme
88. Which one of the following is not a (vi) Compulsory and Voluntary Social
monetary incentive to sales people? Insurance Scheme
(A) Bonus (vii) Child Insurance Scheme
(B) Staff meeting Codes:
(C) Travelling allowance (A) (i), (ii), (iv) and (vi)
(D) Both (B) and (C) (B) (ii), (i), (v) and (vii)
Answer: (D) (C) (iii), (v), (iv) and (vi)
(D) (iv), (vii), (iii) and (ii)
89. Statement (i): Sound industrial Answer: (A)

relations are essential to achieve
individual, team goals and organizational
goals.
91. RBI ensures that banks operate within
Statement (ii): Congenial labour the set norms by conducting ______
management relations create an inspections and _______ monitoring.
atmosphere of harmony and low rate of
absenteeism. (A) On site, off site

(B) Off site, on site (B) Paying Banker
(C) On site, field (C) Advising Banker
(D) Field, on site (D) Confirming Banker
Answer: (A) Answer: (A)
92. Under Section 37 of the Banking 95. When a customer, by a letter has
(Regulation) Act, a moratorium order can advised the bank not to honour/pay a
be issued by the High Court for a particular cheque, such letter is called
maximum total period of ______
(A) One month (A) Cancellation letter
(B) Six months (B) Garnishee letter
(C) One year (C) Mandate
(D) One and a half year (D) None of the above
93. Bonds or debentures issued by 96. Flow of foreign loans and investments
Securitization company should bear affect
interest not less than
(A) Trade balance
(A) Bank Rate
(B) Current Account balance
(B) Prime Lending Rate
(C) Capital Account balance
(C) 1.5% over the Bank Rate
(D) 1.5% over the Saving Rate
Answer: (C)
Answer: (C)
97. Concessions mainly multinational in

94. Section 131 of the Negotiable character come under the principle of
Instruments Act extends protection to the
_______ (A) Non-discrimination
(A) Collecting Banker (B) Reciprocity

(C) Market Access Answer: (B)
(D) Fair Competition

MOCK -4
Answer: (B)
1. Government regulation of business is
basically intended to
98. From the following identify the one (A) Make sure all business units have the
which is not a commercial counter trade? opportunity to be successful.
(A) Classical barter (B) Warn consumers against unfair

business practices
(B) Counter purchase
(C) Make sure business firms are socially
(C) Pre-compensation responsible.
(D) Buy-back agreement (D) Protect the public from the negative
consequences of business behaviour.
Answer: (D)
Answer: (D)
99. If the spot price is higher than the

strike price in a call option, it is referred to 2. What is not the advantage of SEZ?
as
(A) Improvement of infrastructure in the
(A) At-the-money hinterland.
(B) In-the-money (B) Diversion of large tracts of farm land.
(C) Out-of-the-money (C) Attracting foreign investment.
(D) Premium (D) All of the above.
100. Identity the item which does not 3. Which type of the complaints are not to
include under Current Account transaction. be entertained by Consumer Forums under
the Consumer Protection Act, 1986?
(A) Services
(A) A defective product purchased 1½
(B) Non-monetary movement of gold years back.
(C) Unilateral transfer (B) Misleading advertisement in a

newspaper.
(D) Investment income

(C) Services provided free of cost. I II III IV
(D) Tie in sales. (A) (c) (d) (a) (b)
Answer: (C) (B) (a) (b) (c) (d)
(C) (c) (b) (a) (d)
4. Which of the following is a WTO (D) (a) (d) (c) (b)

procedure to promote globalisation?
Answer: (A)
(A) Promotion of free trade.
(B) Reduction of budgetary subsidies.

6. When a partnership is dissolved and the
(C) Reduction in shipping costs. following claims need to be met out piece-
meal of the cash released, which is the
(D) Promotion of foreign portfolio correct sequence in which these claims
investment. have to be met?
Answer: (A) (a) Any partner’s loan
(b) Capital and Current account balances
5. Match the following regarding (c) Expenses of dissolution

disinvestment in India:
(d) Outsider’s claim (both payable and
List – I accrued)
List – II Codes:
(a) Disinvestment Policy by the (A) (c), (d), (a), (b)

Chandrashekhar
Government I. 1999 (B) (b), (c), (a), (d)
(b) Rangarajan Committee on (C) (a), (b), (d), (c)

disinvestment in public sector
enterprises II. 1996 (D) (a), (b), (c), (d)
(c) Strategic and nonstrategic classification Answer: (A)

of public enterprises for disinvestment III.
1991-92
(d) Formation of Disinvestment 7. In practice, accountants consider

Commission revenue from sales if a transaction meets
IV. 1993 the following condition(s):
Codes:

(A) The seller has passed the legal or 10. Which of the following is not
economic ownership of the goods to the applicable to responsibility accounting?
buyer.
(A) Accounting Centre
(B) The seller and the buyer have agreed
on the price of the goods. (B) Cost Centre
(C) The buyer has paid the price of the (C) Investment Centre
goods or it is certain that he will pay the
price. (D) Profit Centre
(D) All of the above. Answer: (A)
Answer: (D) 11. Which one of the following is not the

basic assumption of Cardinal Utility
analysis?
8. The main difference between marginal (A) Rationality of Consumer.

costing and absorption costing lies in the
treatment of (B) Utility cardinally measurable.
(A) Direct cost (C) Diminishing marginal utility of

money.
(B) Fixed overhead
(D) Hypothesis of independent utilities.
(C) Variable overhead
Answer: (C)
(D) Semi-variable overhead www.n etu gc.co m
Answer: (C)
12. Which one of the following is not a
property of indifference curve?
9. Which of the following items is not an (A) Negatively sloping.

appropriation of profit for a limited
company? (B) Convex to the point of origin.
(A) Corporate tax payable (C) Indifference curves necessarily have to

be parallel.
(B) Ordinary dividend payable
(D) Two indifference curves do not
(C) Debenture interest payable intersect each other.
(D) Preference dividend payable Answer: (C)
Answer: (C)
13. Find the correct matching between

items of List-I and the items of List-II.

List – I (C) Marginal productivity of the variable
List – input becomes zero and average
II productivity is positive.
(a) Increase in (D) Marginal productivity of the variable

demand (i) Leftward input is negative but average productivity
movement along the demand curve. is positive.
(b) Contraction of Answer: (C)

demand (ii) Rightward
shift of the demand curve.
(c) Cross 15. Total Revenue (TR) function and the

demand (iii) Total Cost (TC) function of a perfectly
Demand of more than one commodity to competitive market firm are as follows:
satisfy one specific want.
TR = 480 Q – 8 Q2
(d) Joint
demand (iv) TC = 400 + 8 Q2
Demand of one commodity with changes
in the prices of another related commodity The profit maximizing output would be:
Codes: (A) 60
(i) (ii) (iii) (iv) (B) 15
(A) (b) (a) (d) (c) (C) 50
(B) (a) (b) (c) (d) (D) None of the above
(C) (b) (a) (c) (d) Answer: (B)
(D) (a) (b) (d) (c)
Answer: (A) 16. From a population with mean of 220

and standard deviation of 30, a sample of
36 was drawn at random. Calculate the
standard error of the sampling distribution
14. According to the Law of Variable and choose the correct answer from the
Proportions, the second stage of following options.
production ends when
(A) 7.3
(A) Marginal productivity of the variable
input becomes maximum. (B) 6.2
(B) Both marginal productivity and (C) 6.0

average productivity of the variable input
are equal. (D) 5.0

Answer: (D) (C) 33.3
(D) 36.2
17. A committee of six people is to be Answer: (A)

formed from a group of seven men and
four women. What is the probability that
the committee will have exactly two
women? 19. For a hypothesis test, alpha (α) is 0.05
and beta (β) is 0.10. The power of this test
(A) 0.456 is
www .net ugc.c om
(B) 0.803 (A) 0.95
(C) 0.962 (B) 0.90
(D) None of the above (C) 0.80
Answer: (D) (D) 0.15
Answer: (B)
18. From the following Anova table,

calculate the ‘F’ value and select the
correct answer from the options given 20. Which one(s) of the following
below: statements is (are) correct with respect to
Decision Support System (DSS)?
ANOVA
Table (i) It (DSS) is used by middle level
management.
Sources of Variation Sum
of Squares Degrees of (ii) DSS applies to mostly structured
Freedom problems.
Between (iii) DSS relies on mathematical models

columns 100 for analysis.
3
(iv) DSS is largely heuristics based.
Between
rows 24 Codes:
16
(A) (i) and (ii) are correct.
Total
124 (B) (i) and (iii) are correct.
19
(C) (i), (ii) and (iii) are correct.
(A) 22.2
(D) All the four are correct.
(B) 31.5

Answer: (C) (A) Problems are unique and novel.
21. Given below are two statements, one (B) There are no pre-established policies
labelled as Assertion (A), and the other or procedures to rely on.
labelled as Reason (R). Select the correct
answer using the code given below: (C) The conditions for non-programmed
decisions are highly certain.
Assertion (A): Strategies necessarily need
to be changed over time to suit (D) These are the responsibility of top-
environmental changes. management.
Reason (R): To remain competitive, Answer: (C)

organisations develop those strategies that
create value for customers.
Codes: 24. Which of the following is an ethical

behaviour of a manager?
(A) (A) is correct, but (R) is incorrect.
(A) Trading stocks on the basis of inside
(B) Both (A) and (R) are correct. information.
(C) (A) is incorrect, but (R) is correct. (B) Padding expense accounts.
(D) Both (A) and (R) are incorrect. (C) Not divulging trade secrets to
competitors.
Answer: (B)
(D) Being severely critical of competitors.
Answer: (C)
22. Which of the following is not true
about proactive planning?
(A) Way of thinking about managing the 25. Which of the following is suggested by
future risks. Blake and Mouton as the best leadership
behaviour?
(B) Anticipating future contingencies.
(A) Low concern for people but high
(C) Reacting to external events. concern for production.
(D) Getting ready with alternative routes (B) Low concern for both people and
for unforeseen situations. production.
Answer: (C) (C) High concern for both people and

production.
(D) High concern for people and low

23. Which of the following is not a concern for production.
characteristic of non-programmed
decisions? Answer: (C)

29. The most important retail marketing
decision a retailer has to make is to
26. Which segmentation approach is the
most compatible with the spirit of the (A) Select the product assortment.
marketing concept?
(B) Identify its target market.
(A) Benefit sought
(C) Choose the desired service level.
(B) Income
(D) Develop an effective store atmosphere.
(C) Social class
Answer: (B)
(D) Family size
Answer: (A)
30. Which element of the promotion mix
do wholesalers primarily use?
27. Which of the stages of new product (A) Advertising

development process can be skipped?
(B) Personal selling
(A) Business analysis
(C) Public relations
(B) Idea screening
(D) Trade show
(C) Product testing
Answer: (B)
(D) Test marketing
Answer: (D)
31. Out of the following alternative
methods of project evaluation and
selection used in capital budgeting, which
28. The price-setting method which most one of the combinations in the code
closely corresponds to the concept of corresponds to discounted cash flow
product positioning is methods?
(A) Cost-plus pricing (i) Internal Rate of Return
(B) Going-rate pricing (ii) Pay Back Period
(C) Perceived value pricing (iii) Profitability Index
(D) Psychological pricing (iv) Net Present Value
Answer: (C) Codes:
(A) (i), (ii), (iii)

(B) (i), (iii), (iv)
(C) (ii), (iii), (iv) 34. Match the items of List-I with the
items of List-II.
(D) (i), (ii), (iii), (iv)
List – I
Answer: (B)
List – II
(i) Financial Breakeven- point

32. When the expected level of EBIT (a) Rate of discount at which NPV
exceeds the indifferent point for two is zero.
alternative financial plans, (Equity
financing and Debt-financing), then (ii) Cost-Volume-Profit
Analysis (b) Cost of
(A) The use of debt financing would be capital remains the same for different
advantageous to increase EPS. degrees of financial leverage.
(B) The use of equity financing would be (iii) Internal Rate of

advantageous to maximize EPS. Return (c)
Analysis to study relationship among fixed
(C) The use of debt-financing would costs, variable costs, sales volume and
reduce EPS. profits.
(D) The use of equity financing would (iv) Net Operating Income
keep the EPS constant. Approach (d) The minimum
level of EBIT needed to satisfy all fixed
Answer: (A) financial charges.
Codes:
33. Which one of the following is not the (a) (b) (c) (d)
assumption of the Modigliani-Miller
Irrelevance Theory of Dividend Policy? (A) (iii) (iv) (ii) (i)
(A) No personal or corporate income (B) (i) (ii) (iii) (iv)

taxes.
(C) (iv) (iii) (i) (ii)
(B) Dividend policy has its effect on firm’s
cost of equity. (D) (i) (ii) (iv) (iii)
(C) Capital investment policy is Answer: (A)

independent of its dividend policy.
(D) Stock floatation or transaction cost

does not exist. 35. Assertion (A): The focus of working
capital management revolves around
Answer: (B) managing the operating cycle of the
working capital.

Reason (R): It is because the concept is 3. 360-Degree Appraisal c
useful to ascertain the requirements of cash Standardised quantitative rating.
to meet the operating expenses of a going
concern. 4. Graphic Rating d
Comparing ratings to one another.
Codes:
The correct pairing is
(A) Both (A) and (R) are true, but (R) is
not the explanation of working capital 1234
management.
(A) b d a c
(B) Both (A) and (R) are false.
(B) a b c d
(C) (A) is true, but (R) is false.
(C) c d a b
(D) (A) is false, but (R) is true.
(D) d a b c
Answer: (A)
Answer: (A)
36. Which of the following terms includes

the task, duties and responsibilities of a 38. In which method of performance
particular job? appraisal, the evaluator keeps a written
record of significant events and how
(A) Job Evaluation difficult employees behaved during such
events?
(B) Job Enrichment
(A) Field Review Method
(C) Job Analysis
(B) BARS Method
(D) Job Enlargement
(C) Critical Incidents Method
Answer: (C)
(D) Assessment Centre Method
Answer: (C)
37. Match the following lists and indicate
the correct pairing:
List – I List – 39. In connection with HRD, what is

II incorrect?
1. Simple Ranking a (A) It is a reactive function.

Evaluation by Superiors, Peers and
Subordinates. (B) It develops total organisation.
2. Paired Comparison b (C) It focuses on autonomous work

Order of rating from best to worst. groups.

(D) It is an integrated system. (C) Micro-Finance
Answer: (D) (D) Co-Operative Development Fund
Answer: (B)
40. In which method of training, job

conditions are duplicated with equipments
and machines which are identical with 43. Which one of the following is a recent
those used at the work place? E-Banking initiative in Commercial Banks
in India?
(A) On the job training
(A) RTGS
(B) Apprenticeship training
(B) NEFT
(C) Vestibule training
(C) NECS
(D) Internship training
(D) NET Banking
Answer: (C)
Answer: (C)
41. Which one of the following techniques

is used by the Commercial Banks in India 44. Which of the following fee-based
to measure the risk arising from trading services are provided by IDBI?
activity?
(i) Credit syndication
(A) Network Analysis
(ii) Corporate trustee services
(B) Sensitivity Analysis
(iii) Custodial services
(C) Value at risk methodology
(iv) Foreign services
(D) E.V.A.
Identify the correct code:
Answer: (C)
Codes:
(A) (i), (ii) and (iv)

42. Which of the following schemes
introduced by NABARD is intended to (B) (i) and (ii)
provide credit to farmers?
(C) (ii), (iii) and (iv)
(A) Rural Infrastructure
(D) (iii) and (iv)
Development Fund
Answer: (A)
(B) Kisan Credit Card

(i) Initiation
45. SIDBI provides financial assistance in (ii) Preliminary screening

the following forms:
(iii) Rejection of unsubstantiated
(i) Bills financing information www. netu gc.co m
(ii) Project financing (iv) Provisional findings
(iii) Re-finance assistance (v) Final findings and measures
(iv) Resource support to institutions (vi) Permitting the exporting country to

modify the practices
Which of the following sequence is
correct? Codes:
(A) (i), (iii), (iv) and (ii) (A) (i), (ii), (iii), (iv), (vi), (v)
(B) (ii), (iv), (i) and (iii) (B) (i), (ii), (iv), (iii), (vi), (v)
(C) (iii), (i), (iv) and (ii) (C) (ii), (iv), (iii), (i), (vi), (v)
(D) (iv), (i), (iii) and (ii) (D) (ii), (iii), (i), (vi), (iv), (v)
46. BOP problems in India cannot be 48. A situation where any advantage given
attributed only to by one member of the WTO to another
member is extended to all WTO members
(A) Large trade deficit is referred to as
(B) Increase in invisible surplus (A) Trade Diversion
(C) Sensitive behaviour of foreign (B) Inter Regional Principle

creditors, including NRI foreign-currency
depositors. (C) Most Favoured Nation
(D) The declining role of concessional (D) Least Traded Nation

external finance.
Answer: (C)
Answer: (B)
49. The collapse of which of the following

47. Arrange the stages in anti-dumping systems is related to the Triffin Paradox?
investigation process in right sequence.
(A) Gold Standard

(B) Exchange rate mechanism (in 1992) 52. If two commodities are
complementary, then a rise in the price of
(C) Bretton Woods one commodity will induce
(D) None of the above (A) A rise in the price of the other
commodity
Answer: (C)
(B) An upward shift of demand curve
(C) No shift in demand for the other

50. Which of the following is/are the commodity
assumptions of the Law of One Price?
(D) A backward shift in demand for the
(i) Restriction on the movement of goods other commodity
between countries.
Answer: (D)
(ii) No transportation costs.
(iii) No tariffs
53. What is the characteristic of a purely
(A) Both (i) and (ii) competitive market?
(B) Only (i) (A) Large number of buyers and sellers
(C) Both (ii) and (iii) (B) A few sellers
(D) (i), (ii) and (iii) (C) A few buyers
Answer: (C) (D) Abnormal profit
Answer: (A)
51. The term Opportunity Cost refers to
(A) Variable Cost

54. Willingness to pay minus actual
(B) Short-run cost payment is called
(C) The cost forgone in favour of (A) Consumer’s surplus

production of another product
(B) Producer’s surplus
(D) Cost related to an optimum level of
production (C) Utility cost
Answer: (C) (D) Supplier’s surplus
Answer: (A)

55. Match List – I with List – II and select 57. Which of the following is an example
the correct answer using the codes given of an external threat?
below the lists:
(A) Decreased competition
(B) New Trade Regulations
a. Cost Function 1. Kinky
Demand Curve (C) Global Sales Potential
b. Supply Function 2. Isoquants (D) Economies of Scale
c. Production Function 3. Answer: (B)

Engineering Method
d. Oligopoly 4. Factor
Prices 58. Expectancy Theory of Motivation was
propounded by
Codes:
(A) Porter and Lawler
abcd
(B) McGregor
(A) 3 4 2 1
(C) Vroom
(B) 4 3 1 2
(D) J. Stacy Adams
(C) 3 2 1 4
Answer: (C)
(D) 1 2 3 4
Answer: (A)
step in planning?
56. When analysing your business and its (A) Establishing objectives
environment, it is useful to carefully
inspect (B) Developing premises
(A) Threats (C) Determining alternative courses
(B) Opportunities (D) Identifying needs of employees
(C) Strengths and weaknesses Answer: (D)
Answer: (D) 60. Planning is looking ahead and control

is
(A) Scanning environment

(B) Looking back (B) Subjective
(C) Setting targets (C) Both of (A) & (B)
(D) Defining objectives (D) None of these
Answer: (B) Answer: (C)
61. Human Resource Management (HRM)

is a part of the broad Human Resource
Development (HRD) System, as this focus 64. Job Evaluation criterion comes from
to
(A) Job manual
(A) Selection, Induction, Training and
Development (B) Job description
(B) Operational and Organisational (C) Job specification

Options
(D) Job duration
(C) (A) and (B) above
Answer: (C)
Answer: (C)
65. Exit Policy primarily emphasises in the
broad sense, for policy makers as
62. Performance Appraisal is a double (A) Removing employees

edged tool to
(B) Down sizing
(A) Create space for the employee to
organisationally survive. (C) Retiring people and rehabilitating them
(B) Offering challenges for promotion. (D) Bringing new blood to the Corporate
(C) Accompanying the course of Answer: (C)

Demotion.

66. The goal of financial management is
Answer: (D) towww.netugc.co m
(A) Maximise the wealth of Preference

Shareholders
63. Wage determination is mostly done
through tools which are (B) Maximise the wealth of Debenture
holders
(A) Objective

(C) Maximise the wealth of Equity 69. Which of the following is a main
shareholders method of issue of stocks?
(D) All of the above (A) Vendor placing
Answer: (C) (B) Public issue through Prospectus
(C) Private placements
67. The Internal Rate of Return (IRR) is (D) None of the above
determined where
Answer: (B)
(A) The Net Present Value is positive
(B) The Net Present Value is negative

70. The Capital Asset Pricing Model
(C) The Net Present Value is zero (CAPM) establishes the relationship
between
(A) Risk and EPS
Answer: (C)
(B) Risk and value of the firm
(C) Risk and the required rate of return

68. The Tax shield would result in
i. increase in tax liability
Answer: (C)
ii. Increase in EPS
71. ‘Marketing is a human activity directed
iii. Decrease in EPS at satisfying needs and wants through
Exchange process’; is the statement of
iv. Decrease in tax liability
(A) Cundiff ad still
Codes:
(B) Kenneth Andrews
(A) (ii) and (iv)
(C) Philip Kotler
(B) (i) and (iii)
(D) Kishwar S. Kan
(C) (i) and (iv)
Answer: (C)
(D) (iii) and (iv)
Answer: (A)
72. Promotion mix includes
(A) Advertising, publicity, personal selling

and sales promotion

(B) Physical attributes, brand, package and (A) Production Research
product life cycle
(B) Advertising Research
(C) Brand name, product benefits, delivery
and credit (C) Marketing Research
(D) Transportation, material handling, (D) None of the above

packaging and customer service
Answer: (C)
Answer: (A)
76. Which one of the following is not the

73. Which of the following is not the stage function of Production Management?
of product life cycle?
(A) Production, Planning and Control
(A) Introduction
(B) Procurement of Raw Materials
(B) Growth
(C) Market Intelligence and Survey
(C) Market segmentation
(D) Plant Location and Layout
(D) Decline
Answer: (C)
Answer: (C)
27. Time study refers to

74. Which is the basic form of Innovation?
(A) Developing a standard time to do a
(A) Introduction of novel production particular task
process
(B) Improving work methods
(B) Improvement and development of
existing process (C) Value analysis
(C) Improvement and development of (D) Value engineering

existing firm
Answer: (A) www.net ugc.c om
Answer: (D)
78. Acceptance Quality level is
(A) Maximum number of defectives that

75. The scientific system of collecting and the consumers will accept
analysis of data pertaining to market is
known as (B) Fraction defective(s) that the consumer
considers acceptable

(C) Fraction defective(s) that the producer probability that he will win least one
considers acceptable price?
(D) Maximum number of defectives that (A) 0.55

the producer will allow
(B) 0.50
Answer: (B)
(C) 0.44
(D) 0.56
79. In a transportation problem involving
10 origins and 5 destinations, the number Answer: (C)
of constraints representing origin capacity
and destination requirements is equal to
(A) 50 82. The standard error of the mean of a

random sample of size two or more.
(B) 49
(A) Always exceeds the population
(C) 15 standard deviation.
(D) 14 (B) Either exceeds or equals the population

standard deviation.
Answer: (C)
(C) is always lower than the population
standard deviation
80. The critical path of a network is (D) is always equal to the population
standard deviation.
(A) For which earliest start time and latest
start time are same Answer: (C)
(B) The shortest time path through a

network
83. A store manager is trying to explore
(C) For which earliest finish time and the relationship between percentage fat
latest finish time are same content (Y) and price (X) of various dairy
products. He finds that the coefficient of
(D) The longest time path through a determination is 0.4624 and the estimated
network regression line is Y = 0.5 – 0.02 X. The
coefficient of correlation would be
Answer: (B)
(A) 0.68
(B) – 0.68
81. If a person buys one ticket of a State
lottery, then the probability that he wins a (C) – 0.02
price is 0.11. If a person buys one ticket
each month for five months, what is the (D) 0.4624

Answer: (B) (D) Company’s Mission
Answer: (D)
84. Which of the following statement on

testing of hypothesis is always true?
87. Name the factors taken into
(A) When the null hypothesis is rejected at consideration in Internal Analysis
5%, it is always rejected at 1% level of
significance. (A) Firm Resources
(B) When the null hypothesis is rejected at (B) Objective, plans and policies of the
1%, it is also rejected at 5% level of firm
significance.
(C) The type of business involved
(C) When the null hypothesis is not
rejected at 1%, it is rejected at 5% level of (D) All of the above
significance.
Answer: (D)
(D) No definite assertion can be made.
Answer: (B)
88. Diversification is to a new business
area that has no obvious connection with
any of the company’s existing areas refer
85. Which of the following devices would to
be considered a typical sequential access
medium? (A) Forward integration
(A) Magnetic Hard Disk (B) Backward integration
(B) Magnetic Floppy Disk (C) Conglomerate diversification
(C) Magnetic Tape (D) Concentric diversification
(D) CD ROM Answer: (D)
Answer: (C)
89. Which business unit generates

substantial cash surplus due to low
86. What describes the market, product industry growth rate and high profit share?
and technological areas of business?
(A) Dog
(A) BCG Matrix
(B) Cash cow
(B) GE Nine Cell Matrix
(C) Question mark
(C) 7’s framework

(D) Star Answer: (D)
Answer: (B)
93. The book ‘Innovation and

Entrepreneurship’ is written by
90. Who plays an important role in the
success of products and services and in (A) Harold Koontz
increasing the marketing share of the firm
in business? (B) Blake and Mouton
(A) Functional level Managers (C) Peter F. Drucker
(B) Corporate level Managers (D) None of the above
(C) Business level Managers Answer: (C)
Answer: (D) 94. State Financial Corporation Act

encourages in
(A) Establishing Industrial Estates

91. Entrepreneurship as a theory of
business was propounded by (B) Establishing small and medium size
industries
(A) Douglas McGregor
(C) Establishing Agricultural Farms
(B) Thomas A. Coleman
(C) Joseph A. Schumpeter
Answer: (B)
(D) Adam Smith
Answer: (C)
95. Name the Author of Equity Theory of
Motivation.
92. Policies related to Revival of Sick (A) Blake & Mouton

Units are framed by
(B) Strube & Garcia
(A) IIFT
(C) Stancy Adams
(B) CSIR
(D) Albert Bandura
(C) SEBI
Answer: (C)
(D) MSME

96. Anything dealing with Ethics in (A) Protecting the interest of shareholders
Business is
(B) Protecting the interest of employees
(A) Good, bad or both, to the business
gains (C) Fudging of Accounts
(B) Not related to religion (D) Paying Taxes to the Government
(C) Not to focus obligation Answer: (C)
(D) Killing all types of Unfair Trade

Practices
100. Corporate Social Responsibility
Answer: (A) (CSR) is looked as the organised network
of making long economic and social
relationship of the corporate with the
society. But a business of which type, as
97. Ethics provide mentioned below, cannot afford for it, at
the first instance?
(A) Consumer Autonomy
(A) Large Business
(B) CSR
(B) Medium Business
(C) Justice
(C) Small Business
(D) A Business Start-up
Answer: (D)
Answer: (D)
98. Company seeking ethical standard MOCK TEST 05

must purport to
1. Which of the following is not one of the
(A) Good Employee Relation important objectives of Financial
Management?
(B) Better Production Portfolio
(A) Profit maximisation
(C) Economy of Scale
(B) Wealth maximisation
(D) Public Disclosure and Publishing
(C) Value maximisation
Answer: (D)
(D) Social responsibility
Answer: (D)
99. Which of the following is not the act of
Corporate Governance? www. netu gc.co m

2. For ‘make or buy decision’, which cost (A) Industrial Policy
is to be considered?
(B) Investment Limit
(A) Marginal cost
(C) Business Opportunities
(B) Total cost
(D) None of these
(C) Fixed cost
Answer: (B)
Answer: (A)
6. Selection is the process in which
candidates for employment are divided
into two classes – those who are to be
3. Which is the method applied for offered employment and those who are
measuring GNP? not.” This is stated by
(A) Income method (A) Dale Yoder
(B) Expenditure method (B) Milton M. Mandell
(C) Value Added method (C) R.D. Agarwal
(D) All of the above (D) Edwin Flippo
4. Which of the following project appraisal 7. Who defines advertising as “any paid
method is not based on time value of form of non-personal presentation and
money? promotion of ideas, goods and services by
an identified sponsor?
(A) Payback method
(A) Philip Kotler
(B) Net present value method
(B) C.K. Prahlad
(C) Internal rate of return method
(C) Chartered Institute of Marketing
(D) Discounted payback method
(D) American Marketing Association
Answer: (A)
Answer: (D)
5. Micro, Small and Medium Enterprises

Development Act, 2006 is related to 8. The exchange rate between the
currencies of two countries will be equal to

the ratio of the price indices in these (A) 1940
countries is explained by
(B) 1942
(A) Inflation adjustment
(C) 1948
(B) Purchase power parity
(D) 1952
(C) Interest rate parity
Answer: (C)
(D) Transaction exposure
Answer: (B)
12. The evaluation of Business activities
and behaviour as right or wrong is called
9. The ultimate mission or purpose is to (A) Corporate Governance

relate human resources to future enterprise
needs, so as to maximize the future return (B) Business Ethics
on investment in human resources. It is
referred as (C) Social Responsibility
(A) Demand and Supply (D) None of the above
(B) Forecasting Answer: (B)
(C) Human Resource Planning
(D) Human Resource Development 13. A market structure which consists of

one buyer and one seller is referred as
Answer: (C)
(A) Monopsony
(B) Bilateral monopoly

10. Other things being equal an increase in
income leads to a decrease in demand for (C) Monopoly
(A) Superior Goods (D) Duopoly
(B) Inferior Goods Answer: (B)
(C) Both (A) and (B)
(D) None of the above 14. At which stage of new product

development process, the launching of
Answer: (B) New Product will take place?
11. “Hind Mazdoor Sabha” established in (A) Business Analysis

which year? www.n etug c.co m
(B) Commercialization

(C) Test Marketing (D) Intrapreneur
(D) Marketing Strategy Development Answer: (D)
Answer: (B)
18. Which of the following provides

direction, serves as standards for
15. The cost of equity can be measured as evaluating performance and motivates
members of the organization?
(A) Rate of interest (1 – t).
(A) Mission
(B) Rate of dividend (1– t).
(B) Values
(C) Rate of dividend × (Face value – Issue
Price)/n (C) Objectives
(D) D1/P0 + g (D) Goals
Answer: (D) Answer: (C)
16. If the regression coefficient B in Y = A 19. The four systems of Management in

+ B X is equal to zero, then the regression terms of Leadership styles are related to
line will
(A) Blake and Mouton
(A) Pass through the origin
(B) Philip Kotler
(B) Be parallel to the x-axis
(C) Peter F. Drucker
(C) Be parallel to the y-axis
(D) Rensis Likert
(D) Neither intersects x-axis nor y-axis
Answer: (D)
Answer: (B)
Answer: (B)
17. An entrepreneurial person employed
by a corporation and encouraged to be 21. In production control, scheduling
innovative and creative is referred to as includes
(A) Competitor (A) Deciding about the time when the

production will reach various departments.
(B) Supplier
(B) Estimating the time to be consumed in
(C) Entrepreneur these departments.

(C) How much time will be taken in (C) Investing in environmental
transferring production from one performance improvement.
department to another.
Answer: (D)
Answer: (D)
25. A formal document of what the

22. Making profit by taking advantage of entrepreneur intends to do to sell enough
different prices prevailing in different of the firm’s product or service to make a
markets is referred as satisfactory profit is called
(A) Hedging (A) Long range plan
(B) Speculation (B) Strategic plan
(C) Arbitrage (C) Business plan
(D) Gambling (D) None of the above
Answer: (C) Answer: (C)
23. Gegabyte refers to 26. Among the following financial

derivatives, which involves the least risk
(A) 1024 Bytes for the holder?
(B) 1024 Kilobytes (A) Forward
(C) 1024 Megabytes (B) Option
(D) 102400 Bytes (C) Futures
Answer: (C) (D) Swap
Answer: (B)
24. Environmental issues can be managed

by
27. Which level of Managers translate
(A) Investing in environment friendly thecorporate strategy into concrete
process or products. objectives for their individual business?
(B) Managing environmental regulations. (A) Business level
(B) Corporate level

(C) Multi-Business level (D) Inventory carrying cost
(D) Functional level Answer: (A)
Answer: (A)
31. With reference to Working Capital

Management, the term ‘float’ relates to
28. The number of subordinates a superior
can effectively handle is called (A) Inventory Management
(A) Organising people (B) Receivables Management
(B) Span of control (C) Cash Management
(C) Direction (D) Marketable Securities
(D) Coordination Answer: (C)
Answer: (B)
32. Which communication component is

not a paid form of communication?
29. Selection of specific media in which
advertisements will be run and when they (A) Advertising
will be run to reach the target market is
called (B) Sales promotion
(A) Advertising (C) Personal selling
(B) Public Relations (D) Publicity
(C) Media Planning Answer: (D)
(D) Publicity
Answer: (C) 33. The Government of India established

the Small Industries Development
Organisation (SIDO) in the year:
30. Statistical Quality Control requires (A) 1951

determination of
(B) 1972
(A) Quality tolerance limit
(C) 1954
(B) Quantity measurement
(D) 1982
(C) Production leads time
Answer: (C)

36. Takeover generally involves
34. Match the following: (A) The acquisition of part of an

undertaking to enable the acquirer to
List – I List – II increase the market share of the product
concerned.
a. Functional Organisation 1. F.W.
Taylor (B) Theacquisition of certain block of
equity capital of a company which enables
b. Transactional Analysis 2. the acquirer to exercise control over the
McClelland affairs of the company.
c. Managerial Grid 3. Eric (C) Taking over the responsibility to have

Berne trade agreement for finished product.
d. Need Theory 4. Blake and (D) Taking over certain long-term

Mouton liabilities of another group company to
help it financially.
Codes:
Answer: (B)
abcd
(A) 1 3 4 2
(B) 1 2 3 4 function of distribution agency?
(C) 4 3 2 1 (A) Transportation
(D) 2 1 4 3 (B) Servicing
Answer: (A) (C) Inventorying
(D) Manufacturing
35. Which of the following is not a Answer: (D)

Trading block?
(A) NAFTA
38. Cars are parked in a very big parking
(B) ASEAN lot. A researcher is required to estimate the
proportion of cars that are red or the
(C) SAARC proportion of cars that are from a Japanese
manufacturer. Which of the following
(D) IMF statement is not correct?
Answer: (D) (A) A convenience sample of cars parked

near the gate may give a biased estimate of
the proportion of cars which are from a
Japanese Manufacturer.

(B) Different investigators may get 41. GATT stands for
different estimates for the proportion of
cars that are red. (A) General Accord on Tariff and Trade
(C) The sample proportion of cars that are (B) Generous Agreement on Trade and
red is an unbiased estimate of the Tariff
population proportion if the sampling
method is simple random. (C) General Agreement on Tariff and
Trade
(D) A sample of 100 cars in a convenience
sample is always better than a sample of (D) Generalist Agreement on Trade and
20 cars from a proper random sampling Tariff
method.
Answer: (C)
Answer: (D)
42. People who take the risks necessary to

39. Who is father of Administrative organize manage and receive the financial
Management Theory? profits and non-monetary rewards are
called
(A) Max Weber
(A) Suppliers
(B) Frank Gilbraith
(B) Employees
(C) Henry Fayol
(C) Competitors
(D) Henry Gantt
(D) Entrepreneurs
Answer: (C)
Answer: (D)
40. The process of determining the tasks

that make-up a job and the skills, abilities 43. A Marketing database is built as an aid
and responsibilities needed to perform the to
job is called
(A) Market research
(A) Job Analysis
(B) Product-mix expansion
(B) Job Description
(C) Reducing cost of production
(C) Job Enrichment
(D) Price hike
Answer: (A)
Answer: (A)

44. The model that applies to Economic
Order Quantity for Inventory
Management, was proposed to be applied 47. Recruitment is concerned with
to Cash Management by
(A) Selecting the right candidate
(A) Miller and Orr
(B) Developing a pool of job candidates
(B) William J. Baumol
(C) Getting applications
(C) William Sharpe
(D) David Durand
Answer: (B)
Answer: (B)
48. In production management,

45. If a hypothesis is statistically dispatching includes:
significant, then it is concluded that
(A) Giving work to machines and places.
(A) The observed result is probably not
due to chance. (B) Providing materials, tools, etc. to
works.
(B) The observed result is probably a
chance result. (C) Issuing appropriate orders for
production process.
(C) The observed result cannotpossibly be
due to chance. (D) All of the above.
(D) The null hypothesis of no relationship Answer: (D)

is probably true.
Answer: (A)
49. Which of the following is the internal
sources of recruitment?
46. In which stage of product life cycle, (A) Advertisement

the company takes decision whether to
maintain, harvest or drop the product? (B) Selection
(A) Introduction (C) Both (A) and (B)
(B) Growth (D) None of the above
(C) Maturity Answer: (D)
(D) Decline
Answer: (D)

50. Which Business unit generates 53. The Branding strategy which uses a
substantial cash surpluses due to low different brand name for each product is
industrial growth rate and high market known as www. net ugc.co m
share?
(A) Overall Family Branding
(A) Dog
(B) Line Family Branding
(B) Cash Cow
(C) Individual Branding
(C) Question Mark
(D) Brand Extension
(D) Star
Answer: (C)
Answer: (B)
54. The two factor theory was propounded

51. In which stage of new product by
development process, the product and
marketing programs are tested in realistic (A) Frederick Herzberg
market settings?
(B) A.H. Maslow
(A) Concept Development and Testing
(C) McGregor
(B) Idea Screening
(D) Elton Mayo
(C) Test Marketing
Answer: (A)
(D) Commercialization
Answer: (C)
55. Match the following
a. Percentage change in quantity demanded

52. The problem of industrial discipline to percentage change in price.
was debated by the Indian Labour
Conference (ILC) held in India in b. Percentage change in demand to
percentage change in the price of some
(A) 1948 other commodity.
(B) 1952 c. Homogeneous products
(C) 1957 d. Relationship between quantity of the

product demanded and factors that affect
(D) 1960 the quantity.
Answer: (C)
1. Perfect competition

2. Market demand (C) Joint venture
3. Price elasticity (D) Strategic planning
4. Cross elasticity Answer: (D)
Codes:
abcd 58. Benefits provided for temporary and

permanent disability disfigurement,
(A) 3 4 1 2 medical expenses and medical
rehabilitation is referred to as
(B) 4 3 1 2
(A) Fringe benefits
(C) 3 2 1 4
(B) Financial incentives
(D) 4 2 1 3
(C) Workers’ compensation
Answer: (A)
Answer: (C)
56. F.W. Taylor has done the following
studies for improving the production
process:
59. Today’s organizations are working on
(A) Time Study, Fatigue Study and Fatal the principle of
Study.
(A) Production-orientation
(B) Time Study, Motion Study and Fatal
Study. (B) Product-orientation
(C) Time Study, Motion Study and Fatigue (C) Selling-orientation

Study.
(D) consumer-orientation
(D) Time Study, Motivation Study and
Fatigue Study. Answer: (D)
Answer: (C)
60. Identify the correct sequence of control

cycle:
57. Which one is not the overseas market
entry strategy followed by Multinational (A) Feedback -> Evaluation -> Adjustment
Corporations? -> Action.
(A) Franchise (B) Action -> Evaluation -> Feedback ->

Adjustment.
(B) Collaborations

(C) Action -> Feedback -> Evaluation -> (D) Legal Expert
Adjustment.
Answer: (B)
(D) Adjustment -> Action -> Feedback ->
Evaluation.
Answer: (C) 64. Marketing information system gathers

information from internal sources like
marketing intelligence and marketing
research to help the manager in
61. Negotiation of labour contract by
Union and Management is referred to as (A) Assessing the information needs.
(A) Industrial Relations (B) Developing the needed information.
(B) Trade Union (C) Distributing the information.
(C) Consumerism (D) All of the above.
(D) Collective Bargaining Answer: (D)
Answer: (D)
65. In which year WTO came into being?
62. Goods used by an organization in (A) 1980

producing other goods is called
(B) 2000
(A) Consumer goods
(C) 2006
(B) Industrial goods
(D) 1995
(C) Speciality goods
Answer: (D)
Answer: (B)
66. One-level channel consists of
(A) Producer-consumer
63. The outside third party who is brought
into settle a dispute, and he or she has the (B) Producer-dealer-consumer
authority to make a decision is called
(C) Producer-dealer-retailerconsumer
(A) Government
(D) Producer-dealer-wholesaler retailer-
(B) An Arbitrator consumer
(C) Union Answer: (B)

(A) Environmental scanning
67. Batch production is appropriately (B) Strategy formulation

applicable to
(C) Strategy implementation
(A) Medicine production
(D) Functional strategy
(B) Sugar production
Answer: (D)
(C) Petroleum products
(D) Agriculture produce

70. A written statement of the human
Answer: (A) qualification, education and experience
needed to perform a job is referred to as
(A) Job enrichment

(B) Job specification
a. Harry Markowitz 1. Dividend
Theory (C) Job design
b. David Durand 2. CAPM (D) Job description
c. Dow 3. Capital Answer: (C)

structure
d. M.J. Gordon 4. Technical

Analysis 71. Changes in the population
characteristics such as age, gender, marital
Codes: status, income and education are the
examples of
abcd
(A) Demographic characteristics
(A) 4 3 2 1
(B) Cultural characteristics
(B) 2 3 4 1
(C) Geographic characteristics
(C) 2 1 3 4
(D) 3 2 4 1
Answer: (A)
Answer: (B)
72. ESI Act applies to

basic element in the Strategic (A) Railways and Mines Industries
Management?

(B) Seasonal Factory Workers Answer: (A)
(C) Cement Industries

76. In accounting, profit prior to
(D) None of the above incorporation is treated as
Answer: (B) (A) Revenue Reserve
(B) Secret Reserve
73. Porter and Lawler model is related to (C) Capital Reserve
(A) Perception (D) General Reserve
(B) Attitudes Answer: (C)
(C) Motivation
(D) Leadership 77. Receipts and Payments Account is

prepared by
Answer: (C) www.netugc. com
(A) Manufacturing concerns
(B) Non-Trading concerns

74. Which of the following is the best
technique to manage the existing products? (C) Trading concerns
(A) Ansoff matrix (D) Companies registered under

Companies Act, 1956
(B) BCG matrix
Answer: (B)
(C) Mc Kinsey 7s Framework
(D) Five forces of competition

78. Owners equity stands for
Answer: (A)
(A) Fixed Assets minus Fixed Liabilities.
(B) Fixed Assets minus Current Liabilities.

75. One of the acceptable methods for
obtaining feedback of training is called (C) Current Assets minus Fixed Liabilities.
(A) Structured Interview (D) Total Assets minus Total outside

Liabilities.
(B) Performance after Training
Answer: (D)
(C) Improvement after Training
(D) Employee Turnover Rate

79. When the Debt Turnover Ratio is 4, (D) Sales – Variable Cost + Fixed cost
what is the average collection period?
Answer: (B)
(A) 5 months
(B) 4 months
82. The funds available with a company
(C) 3 months after paying all claims including tax and
dividend is called
(D) 2 months
(A) Net Profit
Answer: (C)
(B) Net Operating Profit
(C) Capital Profit

80. Which of the following will result into
sources of funds? (D) Retained Earnings
(i) Increase in current assets Answer: (D)
(ii) Decrease in current assets
(iii) Increase in current liabilities 83. Assertion (A): Accounting information

refers to only events which are concerned
(iv) Decrease in current liabilities with business firm.
Codes: Reason (R): Accounting information is

presented in financial statements.
(A) (i) and (iv)
Codes: www.netug c.co m
(B) (ii) and (iii)

(A) (A) is correct, but (R) is wrong.
(C) (i) and (iii)
(B) Both (A) and (R) are correct.
(D) (ii) and (iv)
(C) (A) is wrong, but (R) is correct.
Answer: (B)
Answer: (B)
81. In marginal costing, contribution is
equal to
(A) Sales – Fixed cost 84. When average cost is declining
(B) Sales – Variable cost (A) Marginal cost must be declining.
(C) Sales – Profit (B) Marginal cost must be above average

cost.

(C) Marginal cost must be below average I. Activity ratios show where the company
cost. is going.
(D) Marginal cost must be rising. II. Balance Sheet ratios show how the
company stand.
Answer: (C)
Codes:
(A) I is correct, but II is wrong.

85. ABC Ltd. has declared 40% dividend.
Which one of the following does it mean? (B) Both I and II are correct.
(A) The company has declared 40% of net (C) I is wrong, but II is correct.
profit as dividend.
(D) Both I and II are wrong.
(B) The company has declared 40% of
profits after tax as dividend. Answer: (B)
(C) The company will provide dividend

40% on issued capital.
88. Income and Expenditure Account of
(D) The company will provide dividend non-profit organisation is a
40% on paid-up capital.
(A) Real Account
Answer: (D)
(B) Nominal Account
86. The main objective of Accounting
Standards is (C) Personal Account
(A) To prepare the accounting reports (D) Representative Personal Account

which is easily understood by common
man. Answer: (B)
(B) To comply with the legal formalities.
(C) To harmonise the diversified 89. Which of the following statements are
accounting practices. correct?
(D) To comply with the requirements of I. Inventory includes raw materials,

the International Accounting Standards finished goods and work – in – progress.
(IAS).
II. Inventory is a part of the working
Answer: (C) capital.
III. Inventory includes goods likely to be

purchased.
87. Given below are two statements:
Codes:

(A) I, II and III (D) 1, 2, 3, 4, 5
(B) II and III Answer: (D)
(C) I and III
(D) I and II 92. What is customer value?
Answer: (D) (A) Ratio between the customer’s

perceived benefits and the resources used
to obtain these benefits.
90. If the current ratio is 2: 1 and working (B) Excess of satisfaction over
capital is Rs. 60,000, what is the value of expectation.
the Current Assets?
(C) Post purchase dissonance
(A) Rs. 60,000
(B) Rs. 1, 00,000
Answer: (A)
(C) Rs. 1, 20,000
(D) Rs. 1, 80,000

93. Match the items of List – I with items
Answer: (C) of List – II.
List – I
91. Which of the following steps of List – II

purchase decision process is in sequence?
a. The silent mental repetition of
1. Problem recognition information.
1. Encoding
2. Search for alternatives
b. The process by which we select a word
3. Evaluation of alternatives or visual image to represent a perceived
object. 2. Rehearsal
4. Purchase action
c. Where information is kept temporarily
5. Post purchase action before further processing. 3.
Working Memory
Codes:
d. The stage of real memory in which
(A) 1, 3, 2, 4, 5 information is processed and held for just a
brief period.
(B) 1, 2, 4, 3, 5
4. Store house
(C) 2, 1, 3, 5, 4
Codes:

abcd 95. Assertion (A): High customer
expectations lead to dissatisfaction as
(A) 2 1 4 3 product performance never matches them.
(B) 1 2 3 4 Reason (R): Product performance is

always customer specific.
(C) 3 2 1 4
Codes:
(D) 4 3 2 1
(A) Both (A) and (R) are correct.
Answer: (A)
(B) Both (A) and (R) are incorrect.
(C) (A) is correct, but (R) is incorrect.

94. Fill in the blanks:
(D) (R) is correct, but (A) is incorrect.
Statements
Answer: (B)
Alternatives
96. Under which concept of marketing do
a. Loyal customers’ ____ products. you find greater emphasis on techniques
1. Less attention and technology of production?
b. Loyal customers are ____ sensitive. (A) Product

2. Cheaper
(B) Selling
c. Loyal customers pay ____ to
competitor’s advertising. 3. Less price (C) Marketing
d. Serving existing customer is ____ (D) None

4. Buy more
Answer: (D)
Codes:
abcd
97. Which is used for short-term sales
(A) 3 1 2 4 achievement?
(B) 4 3 1 2 (A) Personal selling
(C) 2 1 3 4 (B) Advertising
(D) 4 3 2 1 (C) Sales Promotion
Answer: (B) (D) Public Relations
Answer: (C)

98. Public distribution system relates to (A) Utility Theory
(A) Marketing system (B) Indifference Curve Analysis
(B) Retailing system (C) Revealed Preference
(C) Industrial system (D) Inferior Goods
(D) Selling system Answer: (A)
Answer: (B)
2. A Right-ward shift in Demand Curve

indicates
99. Who do buy more, complain less,
spread positive word of mouth, ensure a (A) A decrease in supply
large customer base and repeat business?
(B) An increase in quantity supplied
(A) Satisfied customers
(C) An increase in supply over the
(B) Delighted customers previous year
(C) Industrial customers (D) Law of Variable Proportions
(D) None of the above Answer: (C)
Answer: (B)
3. Which of the following is the condition

for equilibrium for Monopolist?
100. There are impulses which persuade a
customer to buy certain products without (A) MR = MC
evaluating the positive and negative value
of the same. (B) MC = AR
(A) Emotional motives (C) MR = MC = Price
(B) Blind motives (D) AC = AR
(C) Egoistic motives Answer: (A)
(D) All the above
Answer: (D) 4. Giffen goods are those goods
(A) For which demand increases as price

MOCK -6 decreases
1. Cardinal measure of utility is requiredin (B) Which is in short supply?

(C) Which have high elasticity of demand? Commercial, Financial, Security,
Accounting and Managerial?
(D) Which gives rise to a Cob-Web
situation? (A) Peter Drucker
Answer: (A) (B) D. E. McForland
(C) Henry Fayol
5. Match List-I with List-II and select the (D) George R. Terry
correct answer using the codes given
below the lists. Answer: (C)
List – I List –
II
7. What are the elements that a Mission
(Demand Estimation Method) Statement of an Organisation should
(Steps involved) include?
(a) Customer Interview Method 1. (A) Self guidelines for Business

Consumers Interview Operations
(b) Market Experiment Method 2. (B) Identifies the reasons for existence of a
Time series or Cross Section Data company and its responsibilities to the
stakeholders.
(c) Regression Method 3.
Market Stimulation (C) Identifies the firms’ customers and
their needs and matches them to the
(d) Demand Forecasts 4. products and services.
Market Experiments’ Survey
(D) All of the above (A), (B) and (C).
Codes:
Answer: (B)
(a) (b) (c) (d)
(A) 1 3 4 2
8. Changes in population characteristics
(B) 1 3 2 4 such as age, gender, race, marital status,
income and education are examples of
(C) 2 4 3 1 change:
(D) 4 2 1 3 (A) Demographic
Answer: (B) (B) Cultural
(C) Geographic
6. Who divided all activities of the (D) Diversity

organisations into six groups; Technical,

Answer: (A) (C) 3 traits Cattell
(D) 5 traits Costa & Merree
9. Which of the following is not included Answer: (A)

as Micro-Environmental Variables?
(A) Prevailing economic and political

conditions. 12. “Third Party intervention” as “Conflict
Resolution” is www.ne tugc .com
(B) Emerging new technologies

(A) Often required
(C) Financial conditions and culture
(B) Seldom required
(C) Required as a mandate, when conflict
Answer: (D) remains unresolved
(D) Not at all considered as an option
10. During his days at Midvale Steel Answer: (C)

Company F.W. Taylor saw that employees
soldiering – deliberately working at a pace
slower than their capabilities. He identified
that, worker indulge in soldiering 13. The policy of introducing “New
primarily for the following reasons: Blood” is
(A) Fear of losing jobs if they increase (A) Stereotypic

their output.
(B) Bureaucratic as well as redtapic
(B) Faulty wage systems.
(C) Innovative and challenging, making
(C) Out-dated methods of working the corporate dynamic
(D) All of the above (D) Innovative, challenging, but often

resisted
Answer: (D)
Answer: (D)
11. Among the best known trait
approaches to personality measurement –
column A gives Traits and column B states
the name of authority defining them. 14. An “Assessment Centre” is
Match the correct combination
(A) A place
Traits Author
(B) A technique
(A) 20 + needs Murray
(C) Both (A) and (B)
(B) 16 traits Eysenck

(D) None of the above (D) None of the above
Answer: (B) Answer: (A)
15. “Organizational learning” and 18. Which of the following is an important

“Learning organization” are money market instrument?
(A) Same (A) Debentures
(B) Different (B) Commercial Paper
(C) Reverse to each other (C) Public Deposits
(D) Complementary to each other (D) None of the above
Answer: (A) Answer: (B)
16. The value of the firm is maximized 19. The method of payment in Mergers
when the and Acquisitions may include
(A) Market price of equity share is (i) Cash

maximum
(ii) Loan stock
(B) Market price of equity share is
minimum (iii) Ordinary shares
(C) Market value of debt is maximum (iv) Convertible loan stock
(D) None of the above (A) (i) & (iii) only
Answer: (A) (B) (i) & (ii) only
(C) (i), (ii), (iii) and (iv)
17. Which of the following is the main (D) (ii) & (iv) only
assumption of Waltar Valuation Model?
Answer: (C)
(A) All financing is done through Retained
earnings and external sources of funds.
(B) With additional investment the firm’s 20. Working capital refers to the capital
business risk will change. mobilised for meeting
(C) There is a change in the key variables (A) Long-term financial needs of the
such as EPS and DPS company

(B) To meet day-to-day financial 9. Diversity
obligations of the company
(A) 1, 2 and 3 only
(C) To meet the future financial
requirements of the company (B) 6, 7 and 8 only
(D) None of the above (C) 5, 7 and 9 only
Answer: (B) (D) 2, 3 and 9 only
21. Which of the following statement is Answer: (A)

true?
(A) The essence of marketing is a

transaction of an exchange. 23. Which of the following is not the stage
of new product development?
(B) Marketing–orientation is philosophy,
which has to pervade the organization (A) Idea Generation
structure
(B) Business Analysis
(C) Marketing is also a managerial
function involving analysis, planning and (C) Test Marketing
control marketing activities in an
organisation (D) Market Segmentation
(D) All of the above Answer: (D)
Answer: (D)
24. Marketing research does not normally
22. A marketing plan is composed of three (A) Gather environmental information

basic components, namely
(B) Provide a continuous source of
1. Objectives information
2. Policies (C) Relate to all aspects of marketing

operations
3. Program
(D) Describe the current situation
4. Procedure
Answer: (B)
5. Hints
6. Decision
25. Which of the following is not included
7. Command in 7 P’s of services marketing?
8. Periodic (A) Physical evidence

(B) People (C) Arrangement of machines according to
sequence of operations
(C) Process
(D) Planning the work and working the
(D) Marketing plan plans
26. Which of the following is not the type 29. The Graphical method can be used to
of Plant Layout? solve
(A) Product Layout (A) A linear programming problemwith all

integer data base.
(B) Process Layout
(B) A linear programming problem with
(C) Fixed Position Layout two decision variables.
(D) Residential Layout (C) Any linear programming problem.
Answer: (D) (D) A transportation problem with two

origins and two destinations.
Answer: (B)
27. Which of the following factor is
considered in the selection of a plant
location?
30. If two dice are thrown, the probability
(A) Source of Raw-materials that the sum of their points is greater than
10 iswww.n etug c.co m
(B) Availability of water

(A) 1/9
(C) Marketing facilities
(B) 1/12
(D) All the above
(C) 1/3
Answer: (D)
(D) 1/18
Answer: (B)
28. Work measurement refers to
(A) The length of time it takes to complete

a work task assigned to a specific job 31. A Binomial distribution is
characterized as  (16, 0.5) i.e. sample size
(B) Improving work methods is 16 and the probability of success is 0.5.
The mean and variance of this distribution
will be respectively

(A) 8, 4 (A) ISDN
(B) 8, 8 (B) Dial-up
(C) 4, 8 (C) Leased-Line
(D) 4, 4 (D) ISP
Answer: (A) Answer: (D)
32. Two variables are said to be perfectly 35. Match the following:
negatively correlated if
List – I
(A) Covariance between them is positive
List – II
(B) Coefficient of correlation between
them is –1 (I) Poissondistribution hasthe property
that 1. Its mean
(C) Covariance between them is negative isgreaterthanVariance
(D) None of the above (II) Normal distribution is a

2. Symmetric distribution
Answer: (B)
(III) Chi-square distribution is
3. Positively skewed
distribution
33. Which type of sampling is appropriate
when the population consists of well- (IV) Binomial distribution has the property
defined groups such that the elements that 4. Its mean and variance are
within each group are homogeneous and equal.
between each group they are
heterogeneous? Codes:
(A) Cluster Sampling (I) (II) (III) (IV)
(B) Simple Random Sampling (A) 4 2 1 3
(C) Stratified Sampling (B) 4 2 3 1
(D) Judgement Sampling (C) 1 2 3 4
Answer: (C) (D) 2 4 3 1
Answer: (B)
34. Which of the following is not a type of

internet connection?

36. WTO comes into being in the year (A) Corporate strategy
(A) 1975 (B) Business strategy
(B) 1985 (C) Company mission
(C) 1995 (D) Functional strategy
(D) 2001 Answer: (D)
Answer: (C)
40. Which is not a global entry strategy?
37. Which of the following is not Porter’s (A) Exporting

generic strategy?
(B) Joint venture
(A) Focus
(C) Merger and Acquisition
(B) Cost Leadership
(D) Blue ocean strategy
(C) Differentiation
Answer: (D)
(D) Market segmentation
Answer: (D)
41. Which one is not the characteristic
feature of Entrepreneurship?
38. Globalization involves (A) Vision
(A) Free flow of technology from one (B) Risk Bearing

country to another
(C) Initiative and Drive
(B) Free flow of investment from one
country to the other (D) Disloyalty
(C) Free flow of people from one country Answer: (D)

to the other
(D) All the above

42. Which of the following organizations
Answer: (D) is meant for promoting small scale
industries at district level?
(A) SIDBI
39. Which is a short-term strategy for a
firm? (B) DIC

(C) SFCs Answer: (D)
(D) NABARD
Answer: (B) 46. Business propositions are to be

selected by making an analysis that, how
much the local resources will be depleted
in the commencement and the course of
43. The reason for sickness of small scale Business. This is known as
industry is
(A) Sensitivity Analysis
(A) Lack of capital
(B) Common Property Resource use
(B) Lack of market
(C) Environmental Impact Assessment
(C) Severe competition
(D) All the above
Answer: (A)
Answer: (D)
47. Whistle-Blowers are

44. The measure taken by Government to
promote small scale industry. (A) To be removed from the jobs
(A) Provision of land (B) To be promoted
(B) Provision of marketing facilities (C) To be rewarded for the organisational

enrichment
(C) Arrangement of credit and raw
materials (D) To be protected since they intend to
bring out truth
(D) All the above
Answer: (D)
Answer: (D)
48. Funding through Micro finance to

45. Small and medium enterprises are Small and Micro Enterprises is not
successful due to
(A) Labour intensive
(A) High rate of interest
(B) Capital intensive
(B) Out sourcing of method of providing
(C) Market leader Micro Finance
(D) Industry price determiner (C) (A) & (B)

Answer: (C) 52. Find an incorrect statement.
(A) Consumer attitude can be summarized

as evaluation of an object.
49. “Work-Diversity” by nature, does not
go against Ethics. But an executive (B) Attitudes are learned.
assistant while getting transferred from
“stores” to “dispatch” section created (C) Attitudes are synonymous with
turmoil in the office. He is www .net ugc.c om behaviour.
(A) Most ethical in his deal (D) Attitudes have motivational qualities.
(B) Fully against work ethics Answer: (C)
(C) He is workoholic
(D) A Rigid employer, hard nut to crack 53. Who is considered Father of Scientific
Management?
Answer: (B)
(A) Peter Drucker
(B) F.W. Taylor

50. Ethical Management is
(C) Victor Vroom
(A) A Compromise
(D) Henry Fayol
(B) A Compulsion
Answer: (B)
(C) A Judgement
(D) (A) and (B)

54. Who did give the concept of hierarchy
Answer: (A of needs?
(A) Fredrick Herzberg

51. Which subject is relevant to the study
of consumer behaviour? (B) Victor Vroom
(A) Economics (C) Douglas Mcgregor
(B) Psychology (D) A.H. Maslow
(C) Sociology Answer: (D)
(D) All the above www. net ugc.co m
Answer: (D)

55 Assertion (A): Management is a
continuous process.
58. Who is not associated with HRM?
Reason (R): Managers first plan, then
organise and finally perform the function (A) Michael J Jucius
of controlling.
(B) Dale Yodar
Codes:
(C) Edvoin B. Flippo
(A) Both (A) and (R) are correct and (R) is
correct explanation of (A). (D) K.K. Devit
(B) Both (A) and (R) are correct, but (R) is Answer: (D)

59. Merit rating is not known as
(D) (A) is incorrect, but (R) is correct.
(A) Efficiency Rating
Answer: (A)
(B) Service Rating
(C) Job Rating

56. Induction of employees relates to
(D) Experience Rating
(A) Organisational awareness
Answer: (C)
(B) Training programme
(C) Introduction
(D) Assignment of duties items of List – II.
Answer: (C) List – I List –

II
a. FEMA 1.
57. ‘Kinked’ demand curve is related with 1986
(A) Monopoly b. Indian Factories Act 2.

1999
(B) Discriminating monopoly
c. Industrial Dispute Act 3.
(C) Oligopoly 1948
(D) Perfect competition d. Consumer Protection Act 4.

1947
Answer: (C)
Codes:

abcd
(A) 4 2 3 1 63. In perfect competition, the demand

curve of a firm is
(B) 3 1 2 4
(A) Vertical
(C) 2 3 4 1
(B) Horizontal
(D) 1 4 3 2
(C) Positively sloped
Answer: (C)
(D) Negatively sloped
Answer: (B)
61 IF price of any commodity decreases by
20% and the demand for that commodity
increases by 40%, then elasticity of
demand would be 64. Which one is not non-financial
incentive?
(A) Perfectly elastic
(A) Additional bonus on minimum
(B) Perfectly inelastic wasteful expenditure.
(C) Unit elastic (B) Permanent job.
(D) Highly elastic (C) Participatory decision making.
Answer: (D) (D) Recognition of individuality.
Answer: (A)
62. Which of the following statements is

true?
65. HRM does not include
(A) In case of inferior goods, the income
effect is negative, although the substitution (A) Job evaluation
effect is positive.
(B) Performance appraisal
(B) In inferior goods, the income and
substitution effects are positive. (C) Sales promotion
(C) In inferior goods, the income and (D) Job enrichment

substitution effects are negative.
Answer: (C)
(D) In case of inferior goods, the income
effect is positive although the substitution
effect is negative.
66. The term (1-B) is called
Answer: (A)

(A) Level of the test capital budgeting decision as per NPV and
IRR?
(B) Power of the test
(A) Independent Investment Project
(C) Size of the test
(B) No Capital Budget Constraints
(C) No time disparity
Answer: (B)
Answer: (D)
67. Sampling distribution of mean is very

close to the standard normal distribution 70. Match the following:
when
List – I List –
(A) Population is normally distributed. II
(B) Population is not normally distributed, a. Trade policy 1.

but sample size is large. Economic conditions
(C) Both (A) and (B). b. Trade flows 2.

Economic policies
(D) Neither (A) nor (B).
c. Price trends
Answer: (C) 3. Global
linkages
d. Internal sectoral linkages 4.

68. If the value of co-efficient of Structure and Nature of Economy
determination is 0.64, what is the value of
coefficient of correlation? Codes:
(A) 0.40 abcd
(B) 0.80 (A) 3 1 2 4
(C) 0.08 (B) 2 3 1 4
(D) 0.04 (C) 1 2 3 4
Answer: (B) (D) 1 2 4 3
Answer: (B)

source of conflict in project ranking in

71. Which one of the following is not a (C) Women Entrepreneurs
benefit of privatisation?
(A) Encourage entrepreneurship.
Answer: (A)
(B) Concentration of economic power.
(C) Better management of enterprise.

75. Which one of the following is not an
(D) Freedom from bureaucracy. element of internal environment?
Answer: (B) (A) Mission/Objectives
72. ‘BOLT’ system in the Indian Securities (B) Human Resources

market is related to
(C) Customers
(A) National Stock Exchange
(D) Shareholders’ values
(B) Bombay Stock Exchange
Answer: (C)
(C) Over the Counter Exchange of India
(D) Multi Commodity Stock Exchange

76. The presence of fixed costs in the total
Answer: (B) cost structure of a firm results into
(A) Financial leverage
73. Which one of the following is not a (B) Operating leverage

money market instrument?
(C) Super leverage
(A) Commercial paper
(B) Participatory certificates
Answer: (B)
(C) Warrants
(D) Treasury Bills

77. “The cost of capital declines when the
Answer: (C) degree of financial leverage increases.”
Who advocated it?
(A) Net operating income approach

74. Which one is related with micro
financing? (B) Net income approach
(A) SHG (C) Modigliani-Miller approach
(B) Anganwadi workers (D) Traditional approach

Answer: (B) (D) 2 1 3 4
Answer: (C)
78. A view that the dividend policy of a

firm has a bearing on share valuation
advocated by James E. Walter is based on 80. Assertion (A): Operating style of the
which one of the following assumptions? international business can be spread to the
entire globe.
(A) Retained earnings is only source of
financing. Reason (R): The style is limited to the
internal economy only.
(B) Cost of capital does not remain
constant. Codes:
(C) Return on investment fluctuates. (A) Both (A) and (R) are true.
(D) All the above. (B) (A) is true, but (R) is false.
Answer: (A) (C) (A) is false, but (R) is true.
(D) Both (A) and (R) are false.
79. Match the following: Answer: (B)
a. Matching approach 1. Dividend 81. The Comparative Cost Advantage

Policy Theory was given by
b. Structural ratios 2. Inventory (A) David Ricardo

Management
(B) Adam Smith
c. Ordering quantity 3. Financing
Working Capital (C) Raymond Vernon
d. Bonus shares 4. Capital (D) Michael E. Porter

Structure
Answer: (A)
Codes:
abcd
82. The companies globalise their
(A) 1 2 3 4 operations through different means:
(B) 3 4 1 2 (A) Exporting directly
(C) 3 4 2 1 (B) Licensing/Franchising

(C) Joint ventures Answer: (B)
(D) All the above
Answer: (D) 86. SDRs are popularly known as
(A) Currency Notes
83. The components of W.T.O. are (B) Paper Gold
(A) Ministerial Conference (C) Silver Coin
(B) Disputes Settlement Body (D) Gold Coin
(C) Director General Answer: (B)
(D) All the above
Answer: (D) 87. Which one is not international

institution?
(A) IMF
84. India is not associated with
(B) IDA
(A) SAARC www.ne tugc. com
(C) IBRD
(B) NAFTA
(D) TRAI
(C) BRICS
Answer: (D)
Answer: (B)
88. Assertion (A): Indent may be open or
closed. Open indent does not specify the
price and other details of the goods. The
85. Which one of the following is true closed indent specifies the brand, price,
statement? number, packing, shipping mode,
insurance, etc.
(A) A balance of trade deals with export
and import of invisible items only. Reason (R): This is required as a part of
export procedures.
(B) A balance of payment deals with both
visible and invisible items. Codes:
(C) The current account is not a (A) Both (A) and (R) are correct.
component of balance of payment.
(B) Both (A) and (R) are not correct.
(D) All the above.

(C) (A) is true, but (R) is false. Codes:
(D) (R) is true, but (A) is false. abcd
Answer: (C) (A) 4 2 3 1
(B) 3 1 2 4
89. Which one of the statements is not (C) 1 3 2 4

true?
(D) 2 1 3 4
(A) Institutional infrastructure facilitates
market intelligence. Answer: (B)
(B) STC is the chief canalizing agent for

export and import of agricultural products.
91. Assertion (A): Use of paper money is
(C) IIPO organizes trade fairs and replaced by plastic money. The future will
exhibitions. see the electronic money clearance through
satellite networking.
(D) Letter of credit does not indicate that
the bank will pay the value of imports to Reason (R): RBI is encouraging e-
the exporter. banking.
Answer: (D) Codes:
(A) (A) is false, but (R) is true.
90. Match the items of List – I with items (B) (A) is true, but (R) is false.
of List – II.
(C) Both (A) and (R) are false.
List – I
List – (D) Both (A) and (R) are true.
II
Answer: (D)
a. Selective credit control
1. Consumer Credit
Regulation
92. Which one is not Finance Company?
b. Encourage credit for desirable use
2. Cash Reserve Ratio (A) Hire-Purchase Finance Company
c. Quantitative credit (B) IRDA

control 3. Variation in
Margin (C) Mutual Benefit Finance Companies
d. Bank Rate (D) Loan Companies

4. Re-
discounting Rate Answer: (B)

(vi) Using subsidies for well-defined
economic objectives.
93. The Securities and Exchange Board of
India was not entrusted with the function Codes:
of
(A) Investor Protection.
(B) (ii), (iii), (iv) and (v)
(B) Ensuring Fair practices by companies.
(C) (i), (iii), (iv) and (vi)
(C) Promotion of efficient services by
brokers. (D) (i), (ii), (iv) and (vi)
(D) Improving the earnings of equity Answer: (D)

holders.
Answer: (D)
96. Which of the following is not regulated
by The Competition Act, 2002?
94. Which one is a not Non-Marketable (A) Abuse of dominant position

security?
(B) Anti-competitive agreements
(A) Corporate Securities
(C) Medical negligence
(B) Bank Deposits
(D) Predatory pricing
(C) Deposits with Companies
Answer: (C)
(D) Post Office Certificates and Deposits
Answer: (A)
97. The freedom of private enterprise is the
95. The present regime of subsidies can be greatest in the free market economy. This
improved by focussing on is characterized by which of the following
assumptions?
(i) Reducing the overall scale of subsidies.
(i) The factors of production (labour, land,
(ii) Making subsidies as transparent as capital) are privately owned and
possible. production occurs at the initiative of the
private enterprise.
(iii) Giving a specific amount to the
Member of Parliament for subsidies. (ii) Income is received in monetary form
by the sale of services of the factors of
(iv) Setting clear limits on duration of any production and from the profits of the
new subsidy scheme. private enterprise.
(v) Eliminating system of periodic review (iii) Members of the free market economy
of subsidies have freedom of choice in so far as

consumption, occupation, savings and (C) (ii), (iv) and (v)
investments are concerned.
(D) (ii), (iii), (iv) and (v)
(iv) The free market economy is not
planned, controlled or regulated by the Answer: (C)
government.
(v) The free market economy is prone to

corrupt practices. 99. The rationale of expanding role of the
public sector stems mainly from which of
Codes: the following factors?
(A) (i), (ii) and (iii) (i) The failure of the private sector in
certain crucial areas
(B) (i), (ii), (iii) and (iv)
(ii) The exploitation of the society by the
(C) (i), (ii), (iii), (iv) and (v) private sector www.netugc.com
(D) (ii), (iii), (iv) and (v) (iii) The revenue need of the Central
Government
Answer: (B)
(iv) The demand of economic justice
(v) The need for accelerating the pace of

98. The important responsibilities of a economic growth
business to the customers are
Codes:
(i) To ensure family welfare of the
customers. (A) (i), (ii), (iii) and (iv)
(ii) To understand customer needs and to (B) (ii), (iii), (iv) and (v)
take the necessary measures to satisfy
these needs. (C) (i), (iii), (iv) and (v)
(iii) To ensure health condition of the (D) (i), (ii), (iv) and (v)
customers.
Answer: (D)
(iv) To ensure that the product supplied
has no adverse effect on the customer.
(v) To provide an opportunity for being 100. Which of the following factors may
heard and to redress genuine grievances. lead to a sick industrial unit?
Codes: (i) Shortage of funds and faulty financial

management
(A) (i), (ii), (iii), (iv) and (v)
(ii) Investment by the FIIs in Indian
(B) (i), (ii), (iii) and (iv) industries

(iii) Unauthorized FDI in Indian industries (D) iii ii i iv
(iv) Lack of experience on the part of Answer: (C)

promoters
(v) Technological factors including

obsolete or improper technology 2. Which of the following is the major
element of planning process?
Codes:
(A) Developing leadership abilities
(B) Selecting right people
(C) Perception of opportunities
(C) (i), (iv) and (v)
(D) Motivating people
(D) (i), (ii) and (iii)
Answer: (C)
Answer: (C)
MOCK -6
3. Which principle of management is
violated by matrix organisation structure?
1. Match the following: (A) Division of Labour
Thinker (B) Unity of Direction

Management Principle
(C) Unity of Command
a. F.W. Taylor i. Authority
and Responsibility (D) None of the above
b. Henri Fayol ii. Hierarchy Answer: (C)
c. Weber iii.
Separation of planning from doing
4. Which of the following involves careful
d. Elton Mayo iv. analysis of inputs and corrective actions
Human Relations Approach before operation is completed?
Codes: (A) Feed forward control
abcd (B) Concurrent control
(A) iii i iv ii (C) Feedback control
(B) iii iv i ii (D) All the above
(C) iii i ii iv Answer: (A)

(A) Job description and job enlargement
5. Which of the following is not a semantic (B) Job enlargement and job enrichment
barrier of communication?
(C) Job description and job specification
(A) Faulty translation
(B) Ambiguous words
Answer: (C)
(C) Specialist’s language
(D) Inattention
9. A test which measure, what it is
Answer: (D) intended to measure is
(A) Reliable test www.netugc.c om
6. People should be regarded as assets (B) Standardised test

rather than variable costs was emphasised
in (C) Objective test
(A) Personnel Management (D) Valid test
(B) Human Resource Management Answer: (D)
(C) Personnel Administration
(D) Public Administration 10. An enquiry that is conducted afresh

because of the objections raised by alleged
Answer: (B) employee is called
(A) Domestic enquiry
7. The classical theorists favoured (B) De-novo enquiry

organisation based on
(C) Ex-parte enquiry
(A) Civilian model
(B) Strategic model
Answer: (B)
(C) Military model
11. The concept of HRD scorecard was
(D) None of the above introduced in India by
Answer: (C) (A) UdaiPareek
(B) Rao and Pareek
8. Job analysis includes: (C) T.V. Rao

(D) ArunHonappa (C) Kouru Ishi Kawa
Answer: (C) (D) Phillip Crosby
Answer: (C)
12. Performance appraisal by all the

following parties is called
3600 performance appraisal: 15. Match the following:
(A) Supervisors and Peers Books and Concepts

Authors
(B) Subordinates and Employees
themselves a. Games People Play i.
Eric Bernie
(C) Users of Service and Consultants
b. I am OK you are OK ii.
(D) All the above Kurt Lewin
Answer: (D) c. Johari Window iii.

Thomas A. Harris
d. Force Field Analysis iv.

13. The following is the right process of Joseph Lufth & Harry Inghams
training:
Codes:
(A) Instructional design, validation, need
analysis, implementation and evaluation abcd
(B) Need analysis, instructional design, (A) ii i iv iii

validation, implementation and evaluation
(B) i iii iv ii
(C) Need analysis, validation, instructional
design, implementation and evaluation (C) iv ii iii i
(D) Instructional design, need analysis, (D) iii i ii iv

implementation, validation and evaluation
Answer: (B)
Answer: (B)
16. Which of the following decreases

14. Fish bone analysis as a tool of quality group cohesiveness?
circle was advanced by
(A) Agreement on group goals
(A) Edward Deming
(B) Frequency of interaction
(B) Joseph Juran
(C) Large group size

(D) All the above Answer: (A)
Answer: (C)

traditional method of organisational
17. Managers subscribing to ______ development?
assumptions attempt to structure, control
and closely supervise their employees. (A) Survey feedback
(A) Theory ‘X’ (B) Sensitivity training
(B) Theory ‘Y’ (C) Process consultation
(C) Both Theory ‘X’ and Theory ‘Y’ (D) Managerial grid
(D) Neither Theory ‘X’ nor Theory ‘Y’ Answer: (C)
Answer: (A) 21. Characteristics of Industrial Relations

do not include:
(A) Industrial Relations are outcome of

18. According to Fiedler’s Contingency employment relationship in an industrial
Model of Leadership, which one of the enterprise.
following is a situational variable?
(B) Industrial Relations promote the skills
(A) Leader – Member relationship and methods of adjustment and co-
operation with each other.
(B) Organisational System
(C) Industrial Relations create complex
(C) Degree of task structure rules and regulations to maintain cordial
relations.
(D) Leader’s position power
(D) Industrial Relations system creates an
Answer: (B) environment of distrust and conflict.
Answer: (D)
19. The right sequence of steps in Kurt

Lewin’s change procedure is
22. Who are not the Actors of Industrial
(A) Unfreezing – Moving – Freezing Relations?
(B) Moving – Unfreezing – Freezing (A) Workers and their organisations
(C) Unfreezing – Freezing – Moving (B) Employers and their organisations
(D) Freezing – Moving – Unfreezing (C) Community and cultural associations

(D) Government and the role of the State (A) i ii iii iv
Answer: (C) www.netugc. com (B) iv i iii ii
(C) iii i ii iv
23. Which of the following is machinery (D) ii iv i ii

for settlement of industrial disputes?
Answer: (A)
(A) Indian Labour Conference
(B) Joint Management Council

25. Which of the following trends in the
(C) Industrial Tribunal employment relations in the new economic
era is not correct?
(D) Standing Labour Committees
(A) Declining stability and security
Answer: (C)
(B) Declining labour intensity
(C) No shift from contract of service to

24. Match List – I with List – II: contract of service
List – I (D) Declining mutual commitment
List – II Answer: (C)
a. Joint Management Council consisting of

representatives of workers and
management was considered by the Indian 26. A Trade Union means “An association
Labour Conference (ILC) in its 15th of workers in one or more professions
Session in the year i. 1958 carried on mainly for the purpose of
protecting and advancing the members’
b. Works Committees were set-up under economic interest in connection with their
the Industrial Disputes Act in the year ii. daily work”.
1947
Identify the author:
c. ILO established in the year
(A) Sidney and Beatrice Webb
iii. 1919
(B) J. Cunnison
d. First National Commission on Labour
submitted its report in the year (C) G.D.H. Cole
iv. 1969
(D) Clyde E. Dankert
Codes:
Answer: (A)
abcd

27. A union may claim recognition for an
industry in a local area, if it has
membership of 30. Match the following trade unions
according to the year of formation:
(A) 10% of the workers in that industry.
(B) 15% of the workers in that area.
a. AITUC i. 1947
(C) 25% of the workers of that industry in
that area. b. CITU ii. 1948
(D) 30% of the workers in similar c. INTUC iii. 1920

industry.
d. HMS iv. 1970
Answer: (C)
Codes:
abcd
28. Who among the following advocated
the Trusteeship Theory of Trade Union? (A) iii iv i ii
(A) N.M. Lokhande (B) ii iii iv i
(B) B.P. Wadia (C) iii i ii iv
(C) G.L. Nanda (D) i ii iii iv
(D) M.K. Gandhi Answer: (A)
Answer: (D)
31. ‘Employment Injury’ means personal

injury to an employee caused by accident
29. Inter and intra-union rivalry in Trade or occupational disease arising out of and
Unions is reduced by in the course of employment being an
insurable employment if the accident
(A) The provisions of the Industrial occurs or occupational disease is
Disputes Act 1947 contracted only within territorial limits of
India and not outside India.
(B) By voluntary tripartite code of inter-
union rivalry – 1957 The above statement is
(C) By bipartite mutual agreement at the (A) Correct.

industry level
(B) Incorrect.
(D) Above all
(C) true only in case of occupational
Answer: (B) injury.

(D) true only in case of accident. (B) The Maternity Benefit Act and the
Employees State Insurance Act can be
Answer: (B) applicable at a time.
(C) The Workmen’s Compensation Act

and the Employees State Insurance Act can
32. Under ESI Act, 1948 a member of the be applicable at a time.
Corporation, Standing Committee or the
Medical Council shall cease to be a (D) If the Workmen’s Compensation Act
member of the body if he fails to attend and the Maternity Benefit Act are
applicable, the Employees State Insurance
(A) Two consecutive meetings Act is not applicable.
(B) Three meetings intermittently Answer: (D)
(C) Three consecutive meetings
(D) Four consecutive meetings 35. What is the content of the Schedule I
of the ESI Act, 1948?
Answer: (C)
(A) List of injuries deemed to result in
permanent total disablement.
33. Under Workmen’s Compensation Act, (B) List of injuries deemed to result in
1923 permanent partial disablement.
(A) Individual manager subordinate to an (C) List of occupational diseases.

employer cannot act as managing agent.
(B) Managing agent includes an individual
manager subordinate to an employer. Answer: (D)
(C) Only employer can act as managing

agent.
36. A person is qualified to be chosen as a
(D) The appropriate government shall member of the executive or any other
appoint managing agent. office bearer of the registered trade union
if he attained the age of
Answer: (D)
(A) Fifteen years
(B) Eighteen years

34. The Workmen’s Compensation Act,
1923, the Maternity Benefit Act, 1965 and (C) Twenty one years
the Employees State Insurance Act, 1948
(D) Twenty five years
(A) Together can be applicable.
Answer: (B)

workman nor any union of workman is a
party to the dispute.
37. The registered trade union can collect
political fund from its members as a (A) Grievance of an individual workman.
(A) General fund (B) Discharge of an individual workman.
(B) Cannot collect political fund (C) Dismissal of an individual workman.
(C) Separate fund from the interested (D) Discharge, dismissal, retrenchment or
members otherwise termination of services of an
individual workman.
(D) Only from political parties
Answer: (D)
Answer: (C)
40. The ceiling on wage or salary for

38. ‘Award’ under Industrial Disputes Act, calculation of Bonus under the
1947 is
Payment of Bonus Act 1965 is
(a) Not interim determination of labour
court (A) Rs. 2,500
(b) Not arbitration award under Section (B) Rs. 3,500

10A
(C) Rs. 4,500
(c) Not final determination of labour court
(D) Rs. 6,500
(d) Not final determination of arbitration
award under section 10A Answer: (B)
(A) All statements are true.
(B) (a) and (d) are true. 41. “A desirable state of existence
comprehending physical, mental, moral
(C) (b) is true. and emotional health or well-being” is the
theme of which concept of Labour
(D) All statements are wrong. Welfare?
Answer: (D) (A) Social Concept
(B) Total Concept
39. The dispute of individual workman is (C) Relative Concept

deemed to be industrial dispute if the
dispute or difference is connected with or (D) Positive Concept
arising out of the following where no other
Answer: (B)

Answer: (A)
42. Assertion (A): Labour Welfare is

relative to time and space.
Reason (R): It shall be universal and
perpetual. List –
I
(A) Assertion and Reason are right. List – II
(B) Assertion is wrong and Reason is (Theme)

right.
(Theory)
(C) Both Assertion and Reason are wrong.
a. The labour welfare philosophy is meant
(D) Assertion is right but its explanation for guarding the interests of labour against
given in Reason is wrong. the exploitation of employers.
i.
Answer: (D) Trusteeship Theory
b. The labour welfare philosophy exposes

the cause of empathic considerations by
43. Minimum conditions of welfare is the employer of employee well-being
explained by ii. Placating
Theory
(A) Dr.Aykroid’s formula
c. The employer has to set out a portion of
(B) Subsistence Theory the profits for the benefit of the employees
(C) Both (A) and (B) iii.

Policing Theory
d. Labour Welfare is provided for
Answer: (C) pacifying the agitating working class
iv.
Philanthropic Theory
principle of Labour Welfare? Codes:
(A) The Principle of Uniformity abcd
(B) The Principle of Co-ordination and (A) ii iv iii i

Integration
(B) iii iv i ii
(C) The principle of Association
(C) iii i ii iv
(D) The Principle of Timeliness
(D) iv ii iii i

Answer: (B)
48. Assertion (A): Industrial Labour in

India has been migratory.
46. “Labour is not a commodity” – is the
assertion made by Reason (R): Driving force in migration
comes almost entirely from one end of the
(A) The Declaration of Philadelphia channel, that is the village end.
adopted by 26th session of ILO
(A) Both (A) and (R) are wrong.
(B) The Magna Carta
(B) (A) is wrong and (R) is right.
(C) The Constitution of India
(C) (A) is right and (R) also is right.
(D) The International Labour Conference
(D) (A) is right and (R) is wrong.
Answer: (A)
Answer: (C)

49. Match the following: www. netu gc.co m
Concept Propagators
Theory of wages
a. Industrial Democracy i. Karl Marx Propagators
b. Industrial Citizenship ii. Robert a. Wage Fund Theory

Owen i. John Bates Clark
c. Class Conflict iii. Peter F. b. Marginal Productivity Theory ii.

Drucker John Davidson
d. Welfare Movement iv. Sydney c. Bargaining Theory iii.

&Beatrize Webbs John Stuart Mill
Codes: d. Investment Theory iv.

Gilelman
abcd
Codes:
(A) iii i ii iv
abcd
(B) iv iii i ii
(A) ii iv i iii
(C) ii i iv iii
(B) iii i ii iv
(D) ii iv i iii
(C) iv ii iii i
Answer: (B)
(D) i iii ii iv

Answer: (B) 53. Economic capacity of a plant
represents the firm’s capability for
(A) Maximum physical output

50. The “Marginal Discounted Product of
Labour” as a modified version of Marginal (B) Maximum marginal output
Productivity Theory was advanced by
(C) Break-even level of output and sale
(A) Taussig
(D) Output that equates average and
(B) Kalecki marginal costs
(C) Ricardo Answer: (D)
(D) Adam Smith
Answer: (A) 54. Multi-stage approach to product

pricing in a firm involves considerations
for setting the price as follows:
51. The Marshallian utility analysis is i. Selection of firm’s objective

based on a less valid assumption of
ii. Composition of marketing-mix
(A) Cardinal measurement of utility
iii. Selection of target market
(B) Constant marginal utility of money
iv. Selection of pricing policy and strategy
(C) Diminishing marginal utility of goods
(D) Additivity of the utility
(A) iv → ii → i → iii
Answer: (B)
52. An appropriate pricing strategy for a
new product to be introduced in the market (D) i → iii → ii → iv
will be
Answer: (B)
(B) Skimming/Penetrating pricing

55. Which one of the following practices is
(C) Product-line pricing not sought to be regulated under the
Consumer Protection Act, 1986? www.net ugc.c om
(D) Differential pricing

(A) Sales of defective goods
Answer: (B)

(B) Supply of services having some applies its efforts, and they can be fairly
deficiency determined.
(C) Misleading advertisements (C) Goals may be categorised as

deterministic and constraint goals.
(D) Goods supplied free of charge
Answer: (D)
Answer: (D)
56. The leadership prototype

59. According to Fiedler’s Contingency
(A) is useful primarily for selection and Model of Leadership, which one of the
training of employees following is not situational variable?
(B) Uses LPC (Least Preferred Co-worker) (A) Leader-Member relations

as an important component
(B) Task structure
(C) Depicts the image of a model leader
(C) Position power
(D) Emphasizes leadership development
(D) Maturity of followers
Answer: (C)
Answer: (D)
57. Which is not a perceptual process

stage? 60. Which is not a centralized
communication network system?
(A) Attention/selection
(A) Wheel Network
(B) Interpretation
(B) Y-shaped Network
(C) Follow-through
(C) Circle Network
(D) Retrieval
(D) Chain Network
Answer: (A)
Answer: (C)
61. Why is ‘procedural justice’ important

58. Which statement is correct? in the context of the management of
misconduct?
(A) Goals act as the set of constraints that
an organisation must satisfy. (A) It reflects on the integrity of HR
professionals.
(B) Deterministic goals specify the end or
direction towards which the organization

(B) It ensures that individuals have a sense (B) HR staff having very limited
that they have been treated fairly. experience outside the HR functions.
(C) It reflects on the values and attitudes of (C) Over-reliance on the internal labour
top management. market to fill new positions.
(D) It protects the interest of daily wage (D) Lack of integration of recruitment and
earners. selection into the wider human resource
function.
Answer: (B)
Answer: (B)
62. To be effective a points-based rating

system requires: 65. Negotiations are an important aspect of
the collective-bargaining process. What do
(A) Close management control they ensure? www. net ugc.co m
(B) Comprehensive, reliable and consistent (A) That conflict is contained within
information manageable boundaries.
(C) Objectivity in assessments (B) That there is an agreement between all

parties involved.
(D) 360° assessment
(C) That conflict is always resolved.
Answer: (B)
(D) It achieves a set of lasting agreements.
Answer: (A)
63. Too much of reliance on internal
recruitment can result in
(A) Reduced job performance 66. If the going rate of interest is above the
coupon rate, the bond will sell:
(B) High labour turnover
(A) At a Premium
(C) Internal conflict
(B) At a Discount
(D) Poor group dynamics
(C) At Par
Answer: (A)
Answer: (B)
64. The concept of stagnation in the
context of HRM means:
(A) Lack of appropriate selection criteria.

67. In case the sales or project’s abcd
investment deviates from expected ones, it
needs (A) ii i iii iv
(A) Optimistic scenario analysis (B) i iv ii iii
(B) Sensitivity analysis (C) iii ii iv i
(C) Simulation analysis (D) iv iii i ii
(D) Financial break-even analysis Answer: (C)
Answer: (B)
70. The excess payment by the new

company to the amalgamating companies
68. ‘Trading on equity’ refers to for the appraised value of the assets and
liabilities taken over is accounted as
(A) Optimum capital structure
(A) Capital Reserve
(B) Appropriate capitalisation
(B) Bonus Share Capital
(C) Capital gearing
(C) Goodwill
(D) Watered capital
(D) Amount paid for the acquisition of the
Answer: (C) brand
Answer: (C)
69. Match the items of two lists, giving the 71. Which of the following is direct
correct code: marketing?
List – I List – (A) Face to-face marketing

II
(B) Catalogue marketing
a. Dividend Capitalisation Model i.
John Lintner (C) Direct mailing
b. Dividend Relevance Model ii. (D) Test marketing

James E. Walter
Answer: (A)
c. Dividend Irrelevance Model iii.
Myron Gordon
d. Dividend Payout Model iv. 72. In marketing research, primary data

Modigliani & Miller can be collected through
Codes: (A) Observational Method

(B) Survey Method Answer: (D)
(C) Experimental Method
(D) All of the above 76. Consider the names of

organisations/persons listed in List – I and
Answer: (D) their role/functions given in List – II:
List – I
73. Holistic marketing does not include List – II
(A) Internal Marketing a. Bureau of Indian Standards

(BIS) i. Measurement of
(B) Integrated Marketing Service quality
(C) Performance Marketing b. Zeithmal, Parasuraman and Berry

ii. Measurement of quality
(D) Financial Marketing of Educational service
Answer: (D) c. ISO
iii. Standardisation and quality control

of manufactured goods
distinctive characteristic of services? d. National Assessment and Accreditation
Council iv. Quality marking and
(A) Transparency Certification of standards
(B) Intangibility Indicate the correct matching:
(C) Inseparability Codes:
(D) Perishability abcd
Answer: (D) (A) i ii iii iv
(B) ii iii iv i
75. To remain dominant, a market leader (C) iv ii iii i

looks for
(D) iii i iv ii
(A) Ways to expand total market demand
Answer: (D)
(B) Attempting to protect its current share
(C) Increasing its market share
(D) all of the above

77. In Linear Programming, which one of (A) Survey of Buyers’ Intentions
the following cases is not a type of
sensitivity analysis? (B) Composite Opinions of Sales Force
(A) Model building (C) Test Marketing
(B) Objective-function ranging (D) Time-Series Analysis
(C) Pricing out Answer: (D)
(D) Right hand-side ranging www. netu gc.co m
Answer: (A) 81. In a hypothesis test, α = 0.05 and β =

0.10, the power of the test is
(A) 0.10
78. The upper control limit for an X chart,
with n = 9, = 26.7, R = 5.3 and d2 = 2.970, (B) 0.90
is
(C) 0.95
(A) 24.9
(D) 0.15
(B) 26.11
Answer: (B)
(C) 27.29
(D) 28.48
82. When performing a Chi-square
Answer: (D) hypothesis test, what happens when
expected frequencies in several cells are
too small?
79. The additional cost of shortening an (A) Value of χ2 will be overestimated.

activity by one unit of time is
(B) The null hypothesis will be more likely
(A) Cost slope to be rejected than it should be.
(B) Crash cost (C) The degrees of freedom are greatly

reduced.
(C) Crash time
(D) (A) and (B), but not (C).
(D) Least cost
Answer: (D)
Answer: (A)
83. Under which situation, the method of

80. Which method is least suited for ‘experimentation, modeling and sensitivity
forecasting the demand of a new product? analysis’ is used to determine the

information requirements of the (D) iv only
management?
Answer: (D)
(A) Total Uncertainty
(B) High Risk

86. Double taxation relief is normally
(C) Low Risk provided by the country in which the
parent company has its legal residence. It
(D) Certainty is provided in the following modes:
Answer: (A) i. Credit system without deferral
ii. Credit system with deferral
84. The technique(s) that can be used in iii. Deduction of tax paid abroad as
data mining is/are: expenditure
(A) Non-linear Regression Methods iv. Investment credit
(B) Decision tree v. Tax subsidy
(C) Neural networks Identify the correct combination.
(D) All of the above Codes:
Answer: (D) (A) i, ii, iii and iv
(B) i, ii, iv and v
85. A Binomial distribution may be (C) ii, iii, iv and v

approximated by a Poisson distribution, if:
(D) i, ii, iii and v
i. ‘n’ is large and ‘p’ is large.
Answer: (A)
ii. ‘n’ is small and ‘p’ is large.
iii. ‘n’ is small and ‘p’ is small.

87. The strategies of a global firm are
iv. ‘n’ is large and ‘p’ is small. affected by the following factors:
Codes: i. Different countries have different labour

mixes.
(A) i, ii and iii
ii. The legal, economic, social and cultural
(B) ii only environment varies from one country to
another.
(C) iii and iv only

iii. Different countries have different time Answer: (A)
lines and geographical boundaries.
iv. Political relationship between the home

country and the host country. 89. In the context of International
Business, whether an equal distribution of
Indicate the correct combination. income in the host country:
Codes: (A) Has nothing to do with the MNCs

market segmentation strategy.
(A) i, ii and iii
(B) Matters greatly to the MNCs market
(B) ii, iii and iv segmentation strategy.
(C) i, ii and iv (C) Has little impact on the MNCs market

segmentation strategy.
(D) i and ii only
(D) Has a significant impact on the MNCs
Answer: (C) market segmentation strategy if the
economy is at the take-off stage.
Answer: (A)
88. Match the items of List – I and List –
II:
List – I List – II 90. Statement-I: Cost of retained earnings

is included in the cost of equity in the
a. UNCTAD I i. India context of international business.
b. UNCTAD II ii. Brazil Statement-II: Interest rate swap and

currency swap are used interchangeably in
c. UNCTAD X iii. Thailand international business.
d. UNCTAD XI iv. Switzerland (A) Statement I is true, but Statement II is

false.
Indicate the correct matching.
(B) Statement I is false, but Statement II is
Codes: true.
abcd (C) Both the statements I and II are true.
(A) iv i iii ii (D) Both the Statements I and II are false.
(B) iii i iv ii Answer: (D)
(C) ii i iii iv
(D) iv i ii iii

91. Who said – “An entrepreneur always (B) iv i iii ii
searches for change, responds to it and
exploit it as an opportunity.”? (C) iii iv ii i
(A) James Burna (D) iv i ii iii
(B) McClelland Answer: (C)
(D) Robert C. Ronstadt 94. Match the items given in List – I and
List – II:
Answer: (C)
a. Market Research i. Sales

92. ‘Kakinada Experiment’ on promotion
achievement motivation was conducted in
b. Financial Plan ii. Form of
(A) Uttar Pradesh business
(B) Jammu & Kashmir c. Ownership iii.

Budgeting
(C) Andhra Pradesh
d. Marketing Plan iv. Exploring
(D) Gujarat market opportunity
Answer: (C) Codes:
abcd
93. The entrepreneurial process consists of (A) i ii iii iv

the following steps:
(B) iv iii i ii
i. Management of the resulting enterprise.
(C) iv iii ii i
ii. Determination of the required resources.
(D) i ii iv iii
iii. Identification and evaluation of the
opportunity. Answer: (C)
iv. Development of the business plan.
Indicate the correct sequence. 95. TePP stands for
Codes: (A) Technology for Promotion and

Production
(A) iii iv i ii
(B) Trade for Profitability and Productivity

(C) Technopreneur Promotion Programme (D) Profit
(D) None of the above Answer: (D)
Answer: (C)
99. Corporate business ethics is ________

norms and pattern that spring from
96. Indo-American Model of Corporate organizational view of good and bad, right
Governance sets top most priority to and wrong. www.netu gc.co m
(A) Business growth (A) Social
(B) Customers (B) Behavioural
(C) Employees (C) Institutional
(D) Shareholders (D) Individual
Answer: (D) Answer: (B)
97. A good governance in corporate sector 100. Trade Union strike supporting a
depends upon political cause and affecting production
activities is a problem related to
(A) Strong political will
(A) Socio-economic phenomenon
(B) Transparency and accountability
(B) Ethical and technical phenomenon
(C) Trade Union practices
(C) Ethical and economic phenomenon
(D) Social and political responses
(D) Socio-political phenomenon
Answer: (B)
Answer: (C)
98. Corporate leaders in India in private

sector are tempted by a very high target of MOCK TEST -07
________ and the concerned employees
1. The following is the demand function :
have to achieve the target for promotion
and stability. Q = 100 – 5P
(A) Money making What will be the point price elasticity of

demand at price ` 10 ?
(B) Business growth
(1) 2.00 (2) 1.00
(C) Product development
(3) 0.85 (4) 0.50

2. The short-run cost function of a firm is as Reasoning (R) : These needs may be
under : motivators in backward countries but in
TC = 200 + 5Q + 2Q2 a
What will be the level of output at which AC developed country, these needs are supposed
and MC will be equal ? to be satisfied, hence,
(1) 20 (2) 15 they may not be considered motivators.
(3) 10 (4) 5 Codes :
3. Match the items of List – I with the items of (1) Assertion (A) and Reasoning (R), both are
List – II and select the code of correct, but (R) is not right
correct explanation of (A).
matching : (2) Assertion (A) and Reasoning (R), both are

correct, and (R) is correct
WEBSITE –
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(A).
CONTACT/WHAT APP - 7310762592 EMAIL
–diwakareducationhub.co.in@gmail.com (3) Assertion (A) is correct, whereas
Reasoning (R) is incorrect.
(4) Reasoning (R) is correct, whereas
a. Sales Revenue Maximization i. Williamson’s Assertion (A) is incorrect.
Model
8. The basic emphasis of _________ theory of
b. Maximization of a firm’s growth rate ii. organisational design is on flat
Cyert-March Hypothesis
structure,
c. Maximization of Managerial Utility function
iii. Baumol’s Theory decentralization and provision of informal
organisation.
d. Satisficing behaviour model iv. Marri’s
Theory (1) Neo-classical theory (2) Modern theory of
systems approach
Codes :
(3) Matrix organisation theory (4) Classical
abcd theory
(1) iii iv i ii 9. The result variables as the component of

mathematical model for
(2) i ii iv
measuring system’s
WEBSITE –
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JOIN FACEBOOK GROUP - CLICK ON IT science include _____
CONTACT/WHAT APP - 7310762592 EMAIL (1) Measures of performance (2) Measures of

–diwakareducationhub.co.in@gmail.com effectiveness

(3) Payoffs and outcomes (4) All the above c. Reaction iii. Use feedback devices or pre
and post tests to measure what
10. Assertion (A) : Reinforcement plays a
central role in the learning process. learners have actually gained.
Reason (R) : Reinforcement strengthens the d. Behaviour iv. Determine the level of
response preceding it and improvement in job performance
induces Codes :
repetitions of the response. abcd
Codes : (1) iii ii i iv
(1) Both (A) and (R) are correct. (2) iv iii i ii
(2) (A) is correct and (R) is the right (3) i ii iii iv

explanation of (A).
(4) iv i iii ii
(3) (A) is correct but (R) is incorrect.
13. Which one of the following processes
(4) Both (A) and (R) are incorrect. allows top management to diagnose
11. Most job descriptions contain sections that the

cover –
management styles of supervisors, identify
(1) Responsibilities and duties (2) Job potential, employee problems, and
summary
take
(3) Working conditions (4) All of the above
corrective action with individual supervisors as
12. Match the items of List – I with the items of necessary ?
List – II. The items relate to
(1) MBO
evaluation and
(2) Strategic performance appraisal
follow-up of training process.
(3) Organization Development
(4) Upward feedback
a. Results i. Document the learner’s immediate
response to the training. 14. Statement – I : In competency or skill-
based pay, employees are paid for
b. Learning ii. Note supervisor’s reactions to
learner’s performance the range,
WEBSITE – depth and types of skills and knowledge they

WWW.DIWAKAREDUCATIONHUB.COM are capable of using
rather than for the job they currently hold.
–diwakareducationhub.co.in@gmail.com
Statement – II : Broadbanding results into
increase in salary grades and
following completion of the training.
ranges from 3

or 5 to 10 or more. d. Accounting rate of
Codes : return
(1) Only Statement – I is correct. iv. It is the difference between the present
value of cash
(2) Only Statement – II is correct.
inflows and present value of cash outflows.
(3) Both Statements – I and II are correct.
Codes :
(4) Both Statements – I and II are incorrect.
abcd
15. Which one of the following is not a labour
law related to wages ? (1) iv iii ii i
(1) The Workmen’s Compensation Act, 1923 (2) iii i iv ii
(2) The Payment of Bonus Act, 1965 (3) iii iv i ii
(3) The Payment of Wages Act, 1936 (4) iv i ii iii
(4) The Minimum Wages Act, 1948 17. An employee borrowed a 3 year loan of `
10,000 at 9% from his employer
16. Match the items of List – I with the items of
List – II : to buy a
List – I List – II motorcycle. If employer requires three equal

end-of-year repayments, then the
a. Net present value i. Number of years
required to recover the original cash annual
outlay invested in a project. instalment will be _______.
WEBSITE – (1) ` 3,633 (2) ` 3,951

WWW.DIWAKAREDUCATIONHUB.COM
JOIN FACEBOOK GROUP - CLICK ON IT (3) ` 3,333 (4) ` 4,233
CONTACT/WHAT APP - 7310762592 EMAIL 18. Match the items of List – I with the items of
–diwakareducationhub.co.in@gmail.com List – II :
b. Payback period ii. It is the rate of return List – I List – II

which equates the present value
a. M.M. Hypothesis
of anticipated net cash flows with the initial
outlay.
without taxes
c. Internal rate of i. The cost of debt and cost of equity are

assumed to
return
be independent to the capital structure.
iii. It is found out by dividing the average after-
tax profit
b. Net operating income
by the average investment. approach

ii. In the absence of taxes a firm’s market upon which of the following ?
value and
(I) : The stream of dividends expected during
the cost of capital remain invariant to the investor’s ownership.
capital
(II) : The price expected to be realized
structure changes. whenever investor sells the share.
c. M.M. Hypothesis under Codes :
corporate taxes (1) (I) is true, but (II) is false.
iii. The cost of equity is assumed to increase (2) (I) is false, but (II) is true.
linearly
(3) Both (I) and (II) are true.
with leverage.
(4) Both (I) and (II) are false.
d. Net income approach iv. The value of the
firm will increase with debt 20. It is an act of acquiring effective control by
one company over assets or
the deductibility of interest charges for tax due
management of
WEBSITE –
WWW.DIWAKAREDUCATIONHUB.COM another company without any combination of
JOIN FACEBOOK GROUP - CLICK ON IT companies ?
CONTACT/WHAT APP - 7310762592 EMAIL (1) Consolidation (2) Acquisition

(3) Merger (4) None of the above
computations and the value of the levered firm
will 21. Out of the following, identify the key
constituents for performance
be higher than the unlevered firm.
marketing of Holistic
Codes :
marketing dimensions :
abcd
(a) Customers
(1) ii iii iv i
(b) Brand and Customer equity
(2) ii i iv iii
(c) Employees
(3) i ii iii iv
(d) Ethics
(4) iii iv i ii
(e) Environment
19. Explicit Resale Price Valuation method
pre-supposes that an investor (f) Sales revenue
keeps the share only (g) Financial community
for few years and eventually sells the shares.

Codes :
The value of the share,
(1) (a), (b), (c) and (d) (2) (b), (d), (e) and (f)
therefore, depends

(3) (c), (e), (f) and (g) (4) (a), (c), (f) and (g) (3) Reliability (4) Assurance
WEBSITE – 25. Match the items of List – I with the items of

WWW.DIWAKAREDUCATIONHUB.COM List – II :
–diwakareducationhub.co.in@gmail.com a. Rich-media
22. Which one of the following is a potential ads

drawback of multibranding ?
i. Online ads that appear between screen
(1) The company’s resources may be spread changes on a
over too many brands.
website, especially while a new screen is
(2) Consumers may become confused about loading.
the image of the main brand.
b. Pop-ups ii. Display ads that use eye-
(3) An over-extended brand name might lose catching techniques such as
its specific meaning for
float, fly, and snapback.
consumers.
c. Interstitials iii. Ads that users can block
(4) Different product features can appeal to through the use of applications
consumers with different buying
developed by web browser providers.
motives.
Codes :
23. When a firm improves the quality and
increases the price of a product in
abc
relation to a
(1) i ii iii
competitor making a price reduction, the firm is

(2) ii i iii
___________.
(3) ii iii i
(1) moving its brand into a higher price-value
position
(4) iii i ii
(2) changing its target market
26. Statement – I : Operation research is the
application of scientific methods
(3) moving its brand into a less competitive
position
to the study
(4) adversely positioning its product
of alternatives in a problem situation with a
view to providing
24. Which one of the following explains “the
knowledge and courtesy of
qualitative basis for arriving at an optimum
solution in terms of goal
employees and their
sought.
ability to convey trust and confidence” ?
WEBSITE –
(1) Empathy (2) Responsiveness WWW.DIWAKAREDUCATIONHUB.COM

CONTACT/WHAT APP - 7310762592 EMAIL acceptance sampling plan meets both the
–diwakareducationhub.co.in@gmail.com product’s and the consumer’s
Statement – II : Operation research is a risk requirements.

quantitative commonsense
(1) Both the statements are correct.
embracing
(2) Both the statements are incorrect.
observation, experiment and reasoning.
(3) Statement – I is correct while Statement –
Codes : II is incorrect.
(1) (I) is correct but (II) is incorrect. (4) Statement – I is incorrect while Statement –
II correct.
(2) Both (I) and (II) are correct.
29. Statement – I : When there are a large
(3) Both (I) and (II) are incorrect. number of decision variables (more
(4) (II) is correct but (I) is incorrect. than three)
27. Match the items of List – I with List – II : and constraints, iterative mathematical
procedures like simplex
method can be used for product-mix decisions.
a. PERT i. Strategies
Statement – II : Monte Carlo is an approach for
simulating the probability
b. CPM ii. Events
c. Game theory iii. Network distribution
by associating and then selecting random

Codes :
numbers.
abc
(1) Both the statements are correct.
(1) i ii iii
(2) Both the statements are incorrect.
(2) ii iii i
(3) Statement – I is correct while Statement –
II is incorrect.
(3) iii ii i
WEBSITE –
(4) iii i ii WWW.DIWAKAREDUCATIONHUB.COM
28. Statement – I : –
X-chart, np-chart and R-chart are the –diwakareducationhub.co.in@gmail.com
techniques used for product
(4) Statement – I is incorrect while Statement –
control under Statistical Quality Control. II is correct.
Statement – II : Operating characteristic curve 30. In the context of work study, an element is
helps determine whether a rated as 120% and the actual
particular readings (in

minutes) are as under : of correct
0.05, 0.06, 0.05, 0.05, 0.05 matching in connection with probability

distributions :
0.06, 0.06, 0.05, 0.06, 0.06
List – I
What is the normal time for the element ?
(Mean and standard
(1) 0.055 minutes (2) 0.060 minutes
deviations)
(3) 0.066 minutes (4) 0.052 minutes
List – II
31. Which of the following sentences are true ?
(Probability distributions)
(i) The classical approach to probability theory
requires that the total number a. np, npq i. Normal distribution
of b. λ, λ ii. Binomial distribution
possible outcomes be known or calculated and c. 0, 1 iii.Poisson distribution

that each of the outcomes be
Codes :
equally
abc
likely.
(1) i ii iii
(ii) A marginal probability is also known as
unconditional probability. WEBSITE –
(iii) For three independent events, the joint JOIN FACEBOOK GROUP - CLICK ON IT
probability of the three events,
P(ABC) = P(A) × P(B/A) × P(C/AB) –diwakareducationhub.co.in@gmail.com
(iv) Two events are mutually exclusive, (2) iii i ii

exhaustive and equally likely, the
(3) iii ii i
probability of
(4) i iii ii
either event A or B or both occurring P(A or B)
= P(A) + P(B) 33. A researcher wants to test the significance
of the differences of the
Codes :
average performance
(1) (i), (ii), (iii) and (iv) are true.
of more than two sample groups drawn from a
(2) (iii) and (iv) are true. normally distributed population,
(3) (i), (ii) and (iv) are true. which one
(4) (i) and (iii) are true. of the following hypothesis-testing tests is
appropriate ?
32. Match the items of List – I with the items of
List – II and indicate the code (1) Chi-square test (2) F-test

(3) z-test (4) t-test Codes
34. Match the items of List – I with the items of abcd

List – II and indicate the code
(1) i ii iii iv
of their correct
(2) ii i iv iii
matching with regard to correlation and
regression analysis : (3) iii ii iv i
List – I List – II WEBSITE –

a. JOIN FACEBOOK GROUP - CLICK ON IT
γxy CONTACT/WHAT APP - 7310762592 EMAIL

σy
(4) iii iv i ii
σx
35. Match the items of List – I with List – II :
i. Covariance between X and Y
b. Σ(X – –
a. Stock files that are placed in warehouse as
X) (Y – – a record i. Daily report
Y) b. Process of managing goods in most

sensible way ii. Intranet
n ⋅ σx ⋅ σy
c. Management information system iii. Master
file
ii. Standard error of coefficient of
d. Log-in allowed to only internal people iv.

correlation
Stock control
c. Σ(X – –
Codes :
X) (Y – –
abcd
Y)
(1) iii iv i ii
n
(2) iv iii ii i
iii. Regression coefficient of Y on
(3) iii i iv ii
X variable.
(4) i ii iii iv
d. 1 – γ2
36. The highly competitive industries,
particularly in the early stage of product
n
life cycle,
iv. Karl Pearson’s coefficient of
follow which one of the following strategies ?
correlation

(1) Functional area support strategy (2) competitive analysis :
Expansion strategy
WEBSITE –
(3) Diversification strategy (4) Downsizing WWW.DIWAKAREDUCATIONHUB.COM
strategy JOIN FACEBOOK GROUP - CLICK ON IT
37. When highly interrelated variables exist or CONTACT/WHAT APP - 7310762592 EMAIL
when it is necessary to choose –diwakareducationhub.co.in@gmail.com
from several (a) As rivalry among competing firm intensifies,

generally industry profits
plausible alternatives, which one of the
following should the strategist decline or in
integrate in few cases, industry becomes inherently

unattractive.
decision making ?
(b) Whenever new firms are allowed to enter a
(1) Analysis of facts (2) Intuition particular industry, the
(3) Competitor’s strategy (4) Global intensity of

perspective
competitiveness among firms becomes
38. Assertion (A) : In an industrial structure, haphazard.
the acquisition of an existing firm
(c) Generally competitive pressures arising
in the from the substitute products
industry might be a better move than starting- decrease as the

up a new venture.
relative price of substitute products decline.
Reasoning (R) : There is evidence that internal
development might be (d) Bargaining power of suppliers affects the
intensity of competition.
preferable to
Codes :
acquisition because of differences between
culture and shared valued. (1) Statements (a) and (b) are false, others are
true.
Codes :
(2) Statements (a) and (d) are true, others are
(1) Both (A) and (R) are correct and (R) is the false.
correct explanation of (A).
(3) Statements (b), (c) and (d) are true, but (a)
(2) Both (A) and (R) are correct, but (R) is not is false.
the right explanation of (A).
(4) All the statements are true.
(3) (A) is correct, but (R) is not correct.
40. Match the items given in List – I with the
(4) (R) is correct, but (A) is not correct. items of List – II :
39. Consider the following statements with List – I List – II

reference to Porter’s five forces
a. Vision i. General statements of the
model of company’s intent.

b. Mission ii. Desired future position of the traditional industries
company
ii. ISEC
c. Goals iii. Operationalizing of mission
c. Interest subsidy eligibility for all
d. Objectives iv. Vivid idealised description of a
desired outcome institutions registered under KVIC
Codes : iii. MDA
abcd Codes :
(1) iv i ii iii abc
(2) i ii iii iv (1) iii i ii
(3) ii iii i iv (2) iii ii i
(4) iii iv ii i (3) i iii ii
41. Statement – I : VED analysis is meant for (4) i ii iii

project maximization.
43. Under the Sick Industrial Companies
Statement – II : Network analysis is (Special Provisions) Act, 1985, the
independent of planning process.
public sector
Codes :
companies were covered from which year ?
(1) (I) is correct but (II) is incorrect.
(1) February, 1994 (2) January, 1990
(2) (II) is correct but (I) is incorrect.
(3) December, 1991 (4) None of the above
(3) Both (I) and (II) are correct.
44. Industrial Reconstruction Bank of India
(4) Both (I) and (II) are incorrect. (IRBI) which was reconstituted into
42. Match the items of List – I with List – II : a full fledged
List – I List – II all purpose developmental financial institution

with effect from March 27, 1997
a. A promotion assistance for
was
development of Khadi
renamed as _______.
i. SRUTI
(1) Small Industrial Development Bank of India
WEBSITE –
WWW.DIWAKAREDUCATIONHUB.COM (2) Industrial Investment Bank of India Ltd.
(3) Industrial Finance Corporation of India
–diwakareducationhub.co.in@gmail.com (4) Board of Industrial and Financial
Reconstruction
b. A scheme of fund for registration of

45. Non-availability of required project (4) Principle of right, principle of justice and
planning capability is due to _______. social commitment
(1) Poor general management 48. Gandhian concept of social responsibility is

denoted by which one of the
(2) Poor professional management
following ?
(3) Poor entrepreneurial management
(1) Social commitment concept
(4) Poor marketing management
(2) Trusteeship concept
46. Statement – (I) : Ethical decision making is
a very tough prospect in this (3) Sustainable development concept
‘dog-eat-dog’ (4) Welfare concept
world. All will have to fall in and play fair. 49. CII Committee on Corporate Governance
with SEBI as the Custodian of
Statement – (II) : In this age of liberalisation
and globalisation, the old dirty investors
games and constituted on 7th May 1999 is known by

which one of the following ?
ethical conduct will no longer be accepted.
(1) Dr. J.J. Irani Committee
Codes :
(2) Kumar Mangalam Birla Committee
(1) Statement (I) and (II) both are incorrect.
(3) Narayan Murti Committee
WEBSITE –
WWW.DIWAKAREDUCATIONHUB.COM (4) Working group on the Companies Act
50. Which one of the following denotes good
CONTACT/WHAT APP - 7310762592 EMAIL choices of ethical decision
making ?
(2) Statement (I) and (II) both are correct.
(1) (i) take choice seriously
(3) Statement (I) correct, (II) incorrect.
(ii) good decisions are both ethical and
(4) Statement (I) incorrect, (II) correct. effective
47. The three basic principles of business (iii) discernment and discipline
ethics are shown by which one of
(2) (i) ethical actions
the following ?
(ii) discernment and discipline
(1) Utilitarianism, social commitment and
reputation (iii) stage of social welfare
(2) Utilitarianism, societal reputation and (3) (i) take choice seriously
justice
(ii) improve ethical decision
(3) Utilitarianism, principle of right and principle
of justice. (iii) discernment and discipline

(4) (i) good decision are both ethical and 2. An appropriate pricing strategy for a
effective new product to be introduced in the market
will be
(ii) take choice seriously
(iii) ethical actions

ANSWER--- (B) Skimming/Penetrating pricing
Q1) 2, Q2) 3, Q3) 1, Q4) 1, Q5) 4, (C) Product-line pricing
WEBSITE – (D) Differential pricing

Answer: (B)
Q6) 3, Q7) 2, Q8) 1, Q9) 4, Q10) 1, 3. Economic capacity of a plant represents

the firm’s capability for
Q11) 4, Q12) 2, Q13) 4, Q14) 1, Q15) 1,
(A) Maximum physical output
Q16) 4, Q17) 2, Q18) 1, Q19) 3, Q20) 2,
(B) Maximum marginal output
Q21) 2, Q22) 1, Q23) 1, Q24) 4, Q25) 3,
Q26) 2, Q27) 2, Q28) 4, Q29) 1, Q30) 3,

Q31) 3, Q32) 9, Q33) 2, Q34) 4, Q35) 1, (D) Output that equates average and
marginal costs
Q36) 2, Q37) 2, Q38) 2, Q39) 2, Q40) 1,
Answer: (D)
Q41) 4, Q42) 1, Q43) 3, Q44) 2, Q45) 3,
Q46) 2, Q47) 3, Q48) 2, Q49) 2, Q50) 1

4. Multi-stage approach to product pricing
PART -2 OF MOCK -6
in a firm involves considerations for
setting the price as follows:
1. The Marshallian utility analysis is based
on a less valid assumption of
i. Selection of firm’s objective
Answer: (B)

(C) ii → iv → iii → i (D) Retrieval
(D) i → iii → ii → iv Answer: (A)
Answer: (B)
8. Which statement is correct?
5. Which one of the following practices is (A) Goals act as the set of constraints that
not sought to be regulated under the an organisation must satisfy.
Consumer Protection Act, 1986? www.net ugc.c om
(B) Deterministic goals specify the end or

(A) Sales of defective goods direction towards which the organization
applies its efforts, and they can be fairly
(B) Supply of services having some determined.
deficiency
(C) Goals may be categorised as
(C) Misleading advertisements deterministic and constraint goals.
(D) Goods supplied free of charge (D) All of the above.
Answer: (D) Answer: (D)
6. The leadership prototype 9. According to Fiedler’s Contingency

Model of Leadership, which one of the
(A) is useful primarily for selection and following is not situational variable?
training of employees
(A) Leader-Member relations
(B) Uses LPC (Least Preferred Co-worker)
as an important component (B) Task structure
(C) Depicts the image of a model leader (C) Position power
(D) Emphasizes leadership development (D) Maturity of followers
7. Which is not a perceptual process stage? 10. Which is not a centralized

communication network system?
(A) Wheel Network
(B) Interpretation
(C) Follow-through
(C) Circle Network

(D) Chain Network (D) Poor group dynamics

in the context of the management of
misconduct? 14. The concept of stagnation in the
context of HRM means:
(A) It reflects on the integrity of HR
professionals. (A) Lack of appropriate selection criteria.
(B) It ensures that individuals have a sense (B) HR staff having very limited
that they have been treated fairly. experience outside the HR functions.
(C) It reflects on the values and attitudes of (C) Over-reliance on the internal labour
top management. market to fill new positions.
(D) It protects the interest of daily wage (D) Lack of integration of recruitment and
earners. selection into the wider human resource
function.
Answer: (B)
Answer: (B)
12. To be effective a points-based rating

system requires: 15. Negotiations are an important aspect of
(A) Close management control they ensure? www. net ugc.co m
(B) Comprehensive, reliable and consistent (A) That conflict is contained within
information manageable boundaries.
(C) Objectivity in assessments (B) That there is an agreement between all

parties involved.
(C) That conflict is always resolved.
Answer: (B)
Answer: (A)
13. Too much of reliance on internal
(A) Reduced job performance 16. If the going rate of interest is above the
(A) At a Premium
(B) At a Discount

(C) At Par c. Dividend Irrelevance Model iii.
Myron Gordon
d. Dividend Payout Model iv.
Answer: (B) Modigliani & Miller
Codes:
17. In case the sales or project’s abcd

investment deviates from expected ones, it
needs (A) ii i iii iv
(A) Optimistic scenario analysis (B) i iv ii iii
(B) Sensitivity analysis (C) iii ii iv i
(C) Simulation analysis (D) iv iii i ii
(D) Financial break-even analysis Answer: (C)
Answer: (B)
20. The excess payment by the new

18. ‘Trading on equity’ refers to for the appraised value of the assets and
(A) Optimum capital structure
(A) Capital Reserve
(B) Appropriate capitalisation
(C) Capital gearing
(C) Goodwill
(D) Watered capital
(D) Amount paid for the acquisition of the
Answer: (C) brand
Answer: (C)
19. Match the items of two lists, giving the 21. Which of the following is direct
correct code: marketing?
List – I List – (A) Face to-face marketing

II
(B) Catalogue marketing
John Lintner (C) Direct mailing
b. Dividend Relevance Model ii. (D) Test marketing

James E. Walter

Answer: (A) 25. To remain dominant, a market leader
looks for

can be collected through (B) Attempting to protect its current share
(A) Observational Method (C) Increasing its market share
(B) Survey Method (D) all of the above
(C) Experimental Method Answer: (D)
Answer: (D) 26. Consider the names of

their role/functions given in List – II:
23. Holistic marketing does not include List – I
(A) Internal Marketing List – II
(B) Integrated Marketing a. Bureau of Indian Standards

(C) Performance Marketing Service quality
(D) Financial Marketing b. Zeithmal, Parasuraman and Berry

Answer: (D) of Educational service
c. ISO
24. Which of the following is not a iii. Standardisation and quality control
distinctive characteristic of services? of manufactured goods
(A) Transparency d. National Assessment and Accreditation

Council iv. Quality marking and
(B) Intangibility Certification of standards
(C) Inseparability Indicate the correct matching:
(D) Perishability Codes:
Answer: (D) abcd
(A) i ii iii iv
(B) ii iii iv i

(C) iv ii iii i (D) Least cost
(D) iii i iv ii Answer: (A)
Answer: (D)
30. Which method is least suited for

forecasting the demand of a new product?
27. In Linear Programming, which one of
the following cases is not a type of (A) Survey of Buyers’ Intentions
sensitivity analysis?
(B) Composite Opinions of Sales Force
(A) Model building
(C) Test Marketing
(B) Objective-function ranging
(D) Time-Series Analysis
(C) Pricing out
Answer: (D)
(D) Right hand-side ranging www. netu gc.co m
Answer: (A)
31. In a hypothesis test, α = 0.05 and β =
28. The upper control limit for an X chart, (A) 0.10

with n = 9, = 26.7, R = 5.3 and d2 = 2.970,
is (B) 0.90
(A) 24.9 (C) 0.95
(B) 26.11 (D) 0.15
(C) 27.29 Answer: (B)
(D) 28.48
Answer: (D) 32. When performing a Chi-square

hypothesis test, what happens when
expected frequencies in several cells are
too small?
29. The additional cost of shortening an
activity by one unit of time is (A) Value of χ2 will be overestimated.
(A) Cost slope (B) The null hypothesis will be more likely
to be rejected than it should be.
(B) Crash cost
(C) The degrees of freedom are greatly
(C) Crash time reduced.

(D) (A) and (B), but not (C). Codes:
Answer: (D) (A) i, ii and iii
(B) ii only
33. Under which situation, the method of (C) iii and iv only
‘experimentation, modeling and sensitivity
analysis’ is used to determine the (D) iv only
information requirements of the
management? Answer: (D)
(B) High Risk 36. Double taxation relief is normally

provided by the country in which the
(C) Low Risk parent company has its legal residence. It
is provided in the following modes:
(D) Certainty
i. Credit system without deferral
Answer: (A)
ii. Credit system with deferral
iii. Deduction of tax paid abroad as

34. The technique(s) that can be used in expenditure
data mining is/are:
iv. Investment credit
(A) Non-linear Regression Methods
v. Tax subsidy
(B) Decision tree
Identify the correct combination.
(C) Neural networks
Codes:
(A) i, ii, iii and iv
Answer: (D)
(B) i, ii, iv and v
(C) ii, iii, iv and v

35. A Binomial distribution may be
approximated by a Poisson distribution, if: (D) i, ii, iii and v
i. ‘n’ is large and ‘p’ is large. Answer: (A)
ii. ‘n’ is small and ‘p’ is large.
iii. ‘n’ is small and ‘p’ is small. 37. The strategies of a global firm are
affected by the following factors:
iv. ‘n’ is large and ‘p’ is small.

i. Different countries have different labour (B) iii i iv ii
mixes.
(C) ii i iii iv
ii. The legal, economic, social and cultural
environment varies from one country to (D) iv i ii iii
another.
Answer: (A)
iii. Different countries have different time
iv. Political relationship between the home 39. In the context of International
country and the host country. Business, whether an equal distribution of
income in the host country:
Indicate the correct combination.
(A) Has nothing to do with the MNCs
Codes: market segmentation strategy.
(A) i, ii and iii (B) Matters greatly to the MNCs market

(B) ii, iii and iv
(C) Has little impact on the MNCs market
(C) i, ii and iv segmentation strategy.
(D) i and ii only (D) Has a significant impact on the MNCs

market segmentation strategy if the
Answer: (C) economy is at the take-off stage.
Answer: (A)

II:
40. Statement-I: Cost of retained earnings
List – I List – II is included in the cost of equity in the
context of international business.
a. UNCTAD I i. India
Statement-II: Interest rate swap and
b. UNCTAD II ii. Brazil currency swap are used interchangeably in
international business.
c. UNCTAD X iii. Thailand
(A) Statement I is true, but Statement II is
d. UNCTAD XI iv. Switzerland false.
Indicate the correct matching. (B) Statement I is false, but Statement II is

true.
Codes:
(C) Both the statements I and II are true.
abcd
(D) Both the Statements I and II are false.
(A) iv i iii ii

Answer: (D) Codes:
(A) iii iv i ii
41. Who said – “An entrepreneur always (B) iv i iii ii

searches for change, responds to it and
exploit it as an opportunity.”? (C) iii iv ii i
(A) James Burna (D) iv i ii iii
(B) McClelland Answer: (C)
(D) Robert C. Ronstadt 44. Match the items given in List – I and
List – II:
Answer: (C)
a. Market Research i. Sales

42. ‘Kakinada Experiment’ on promotion
achievement motivation was conducted in
(A) Uttar Pradesh business
(B) Jammu & Kashmir c. Ownership iii.

Budgeting
(C) Andhra Pradesh
d. Marketing Plan iv. Exploring
(D) Gujarat market opportunity
Answer: (C) Codes:
abcd
43. The entrepreneurial process consists of (A) i ii iii iv

the following steps:
(B) iv iii i ii
i. Management of the resulting enterprise.
(C) iv iii ii i
ii. Determination of the required resources.
(D) i ii iv iii
opportunity. Answer: (C)
Indicate the correct sequence. 45. TePP stands for

(A) Technology for Promotion and (A) Money making
Production
(B) Business growth
(B) Trade for Profitability and Productivity
(C) Product development
(C) Technopreneur Promotion Programme
(D) Profit
Answer: (D)
Answer: (C)

46. Indo-American Model of Corporate norms and pattern that spring from
Governance sets top most priority to organizational view of good and bad, right
and wrong. www.netu gc.co m
(A) Business growth

(A) Social
(B) Customers
(B) Behavioural
(C) Employees
(C) Institutional
(D) Shareholders
(D) Individual
Answer: (D)
Answer: (B)
47. A good governance in corporate sector

depends upon 50. Trade Union strike supporting a
political cause and affecting production
(A) Strong political will activities is a problem related to
(B) Transparency and accountability (A) Socio-economic phenomenon
(C) Trade Union practices (B) Ethical and technical phenomenon
(D) Social and political responses (C) Ethical and economic phenomenon
Answer: (B) (D) Socio-political phenomenon
Answer: (C)
48. Corporate leaders in India in private MOCK -7

sector are tempted by a very high target of
________ and the concerned employees 1. The present regime of subsidies can be
have to achieve the target for promotion improved by focussing on
and stability.
(i) Reducing the overall scale of subsidies.

(ii) Making subsidies as transparent as (i) The factors of production (labour, land,
possible. capital) are privately owned and
production occurs at the initiative of the
(iii) Giving a specific amount to the private enterprise.
Member of Parliament for subsidies.
(ii) Income is received in monetary form
(iv) Setting clear limits on duration of any by the sale of services of the factors of
new subsidy scheme. production and from the profits of the
private enterprise.
(v) Eliminating system of periodic review
of subsidies (iii) Members of the free market economy
have freedom of choice in so far as
(vi) Using subsidies for well-defined consumption, occupation, savings and
economic objectives. investments are concerned.
Codes: (iv) The free market economy is not

planned, controlled or regulated by the
(A) (i), (ii), (iii) and (iv) government.
(B) (ii), (iii), (iv) and (v) (v) The free market economy is prone to
corrupt practices.
(C) (i), (iii), (iv) and (vi)
Codes:
(D) (i), (ii), (iv) and (vi)
Answer: (D)
(C) (i), (ii), (iii), (iv) and (v)

2. Which of the following is not regulated
by The Competition Act, 2002? (D) (ii), (iii), (iv) and (v)
(A) Abuse of dominant position Answer: (B)
(B) Anti-competitive agreements
(C) Medical negligence 4. The important responsibilities of a

business to the customers are
(D) Predatory pricing
(i) To ensure family welfare of the
Answer: (C) customers.
(ii) To understand customer needs and to

take the necessary measures to satisfy
3. The freedom of private enterprise is the these needs.
greatest in the free market economy. This
is characterized by which of the following (iii) To ensure health condition of the
assumptions? customers.

(iv) To ensure that the product supplied
has no adverse effect on the customer.
6. Which of the following factors may lead
(v) To provide an opportunity for being to a sick industrial unit?
heard and to redress genuine grievances.
(i) Shortage of funds and faulty financial
Codes: management
(A) (i), (ii), (iii), (iv) and (v) (ii) Investment by the FIIs in Indian
industries
(iii) Unauthorized FDI in Indian industries
(C) (ii), (iv) and (v)
(iv) Lack of experience on the part of
(D) (ii), (iii), (iv) and (v) promoters
Answer: (C) (v) Technological factors including

obsolete or improper technology
Codes:
5. The rationale of expanding role of the
public sector stems mainly from which of (A) (i), (ii), (iii) and (iv)
the following factors?
(i) The failure of the private sector in
certain crucial areas (C) (i), (iv) and (v)
(ii) The exploitation of the society by the (D) (i), (ii) and (iii)
private sector www.netugc.com
Answer: (C)
(iii) The revenue need of the Central
Government
(iv) The demand of economic justice 7. Indicate what is not correct in respect of
the Consumer Protection Act, 1986.
(v) The need for accelerating the pace of
economic growth (A) No complaint can be entertained in
respect of a product purchased more than 2
Codes: years back.
(A) (i), (ii), (iii) and (iv) (B) A complaint against medical
negligence can be filed by legal heir or
(B) (ii), (iii), (iv) and (v) representative of the deceased.
(C) (i), (iii), (iv) and (v) (C) A complaint involving a claim of Rs.
15 lakhs is to be filed before the State
(D) (i), (ii), (iv) and (v) Commission.
Answer: (D) (D) Both (A) and (C)

11. Which of the following ratios are taken

into consideration by a banker before
8. If bonus shares are issued out of pre- sanctioning the loan?
acquisition profit, it will have
(A) Proprietory Ratio
(A) Direct effect on the Consolidated
Balance Sheet (B) Stock-Turnover Ratio
(B) No effect on the Consolidated Balance (C) Debt-Equity Ratio

Sheet
(C) No effect on Net Profit
Answer: (C)
Answer: (B)
12. Match the items of the following two
lists:
9. The present value of the future List – I

contributions of employees is one of the
methods of List – II
(A) HR Accounting (i) Zero-base

Budgeting (a)
(B) Inflation Accounting Internal Reconstruction
(C) Social Accounting (ii) Goodwill or Capital

Reserve (b) Earnings
(D) Responsibility Accounting Per Share
Answer: (A) (iii) Reduction of

Capital (c)
Control of Expenditure
10. A standard which can be attained under (iv) Basic &

the most favourable working conditions is Diluted (d)
called Business Combination
(A) Attainable Standard Codes:
(B) Basic Standard (i) (ii) (iii) (iv)
(C) Current Standard (A) (c) (d) (b) (a)
(D) Ideal Standard (B) (d) (c) (a) (b)

(C) (d) (a) (c) (b) (B) Only (A) is correct.
(D) (c) (d) (a) (b) (C) Only (R) is correct.
Answer: (D) (D) Both (A) and (R) are wrong.
Answer: (A)
13. Assertion (A): Dividend paid out of

pre-acquisition profit by the subsidiary
company to the holding company is 15. Match the items of List – I with the
deducted from the cost of investment. items of List – II and select the correct
code for the answer:
Reason (R): Dividend paid out of pre-
acquisition profit by the subsidiary List – I
company should be treated as a return of
capital to the holding company. List – II
Which one of the following is correct? (a) Multiple plants

(i)
(A) Both (A) and (R) are correct. MRPT = MC = MRPX = MRPPY
(B) (A) is correct, but (R) is wrong. (b) Cost-plus

pricing (ii)
(C) (A) is wrong, but (R) is correct. MRT = MC = MR1 = MR2
(D) Both (A) and (R) are wrong. (c) Multiple

markets
Answer: (A) (iii) MR = MCT = MCA = MCB
(d) Multiple products

(iv) P = (1 +
14. Given below are two statements, one m) ATC
labelled as Assertion (A) and the other
labelled as Reason (R): Codes:
Assertion (A): Increasing the value of (a) (b) (c) (d)

closing inventory increases profit.
(A) (iv) (ii) (i) (iii)
Reason (R): Increasing the value of closing
inventory reduces cost of goods sold. (B) (i) (iii) (iv) (ii)
In the context of above two statements, (C) (ii) (i) (iii) (iv)
which of the following is correct?
(D) (iii) (iv) (ii) (i)
Codes:
Answer: (D)

16. A measure of the responsiveness of 19. What kinds of actions can be taken to
quantity demanded to changes in the price put the rivals at a disadvantageous position
of a related good is known as under oligopoly market?
(A) Cross Elasticity of Demand (A) Commitments
(B) Substitution Elasticity of Demand (B) Threats
(C) Complementary Elasticity of Demand (C) Promises
(D) Price Elasticity of Demand (D) All the above
17. If the total cost is Rs. 260 and the total 20. There is no exceptions to the law of
variable cost is Rs. 60, what will be total demand in the case of
fixed cost if output is (a) 100 units and (b)
200 units? (A) Giffen goods
(A) Rs. 200 and Rs. 200 (B) Normal goods
(B) Rs. 100 and Rs. 200 (C) Articles of conspicuous consumption
(C) Rs. 260 and Rs. 100 (D) Ignorance of the buyer
(D) Rs. 160 and Rs. 100 Answer: (B)
Answer: (A) 21. What is the degree of elasticity of

demand in case the demand is represented
by a straight line parallel to the x-axis?
18. Optimal input combination to (A) e > 1

minimize the cost for a given output will
be at the point where: (B) e = 0
(A) Isocost is tangent to Isoquant (C) e = ∝
(B) MRTS between inputs is equal (D) e < 1
(C) Any movement from optimum point Answer: (C)

will lead to low level of output
(D) All the above conditions are fulfilled.

22. If a chi-square test is to be performed
Answer: (D) on a contingency table with 3 rows and 4
columns, how many degrees of freedom
should be used?

(A) 6 (D) 1.22
(B) 12 Answer: (C)
(C) 8
(D) 9 25. The regression equation of profits (X)

on sales (Y) of a firm is given as:
Answer: (A)
3Y – 5X + 110 = 0. If the sales of the firm
is Rs. 44,000, the profit will be
23. Assertion (A): If regression coefficient (A) Rs. 23,370

of X on Y is greater than one, regression
coefficient of Y on X must be less than (B) Rs. 26,422
one.
(C) Rs. 24,422
Reason (R): The geometric mean between
two regression coefficients is the co- (D) Rs. 21,370
efficient of correlation.
Answer: (B)
On the basis of the above, choose the
appropriate answer:
(A) (A) and (R) are correct. 26. Cricketer ‘A’ scores on an average 40
runs with a standard deviation of 5. Scores
(B) (A) is correct, but (R) is not correct. of players ‘B’ and ‘C’, on an average, are
75 and 90 with standard deviations 10 and
(C) (A) is not correct, but (R) is correct. 18 respectively. Arrange the players in the
descending order of consistency:
(D) Both (A) and (R) are not correct.
(A) A, B and C
Answer: (A)
(B) C, B and A
(C) B, A and C
24. If the sum of squares of deviations
within samples is 140 with 12 degrees of (D) C, A and B
freedom and the sum of squares of
deviations between samples is 190 with 2 Answer: (A)
degrees of freedom, the test statistic will
be
(A) 81.4 27. Among the following, choose the most

suitable ‘test’ that can be applied to
(B) 12.28 examine the influence of one factor on
different groups:
(C) 8.14
(A) ‘t’ test

(B) ‘F’ test
(C) ‘Chi-square’ test 30. According to Vroom’s Expectancy

Theory of Motivation,
(A) Force = valence divided by expectancy
Answer: (B)
(B) Force = valence × expectancy
(C) Force = strength of an individual

28. A machine produced 20 defective preference for an outcome
articles in a batch of 400. After
overhauling, it produced 10% defectives in (D) Valence = probability that a particular
a batch of 300. Which test of hypothesis action shall lead to a desired outcome
can be applied to the above situation to
examine whether the machine has Answer: (B)
improved?
(A) Test of significance of a sample

proportion (two-tail test) 31. In the managerial grid, the managers
who have little or no concern for
(B) Test of significance of a sample production but are concerned only for
proportion (one-tail test) people are known as what type of
managers?
(C) Test of significance of difference
between two sample proportion (two-tail (A) 1.1 Management
test)
(B) 5.5 Management
(D) Test of significance of difference
between two sample proportion (one-tail (C) 9.1 Management
test)
(D) 1.9 Management
Answer: (D)
Answer: (D)
29. Strategies and policies

32. According to the Boston Consulting
(A) are not closely related group, a business, which has a strong
market share in a low growth industry is
(B) give direction referred to as a
(C) are the framework for performance (A) Dog

appraisal
(B) Cash Cow
(D) both (A) and (B)
(C) Star
Answer: (B)
(D) Question mark

Answer: (B) Codes:
(A) (i), (ii), (iii), (iv)
33. Which of the following are major (B) (ii), (iii), (iv), (i)
principles of leading?
(C) (iii), (iv), (i), (ii)
(i) Principle of motivation
(D) (ii), (iv), (i), (iii)
(ii) Principle of continuous development
Answer: (B)
(iii) Principle of harmony of objectives
(iv) Principle of open competition

35. Consider the following:
(v) Principle of communication clarity
(i) Planning is today’s action for
Select the correct answer from the codes tomorrow’s decision.
given below:
(ii) Planning is forward looking while
Codes: controlling is looking back.
(A) (i), (ii), (iii), (v) (iii) Motivation is about getting voluntary
willingness of subordinates for action.
(B) (i), (ii), (iii), (iv), (v)
(iv) Line and staff organisation is the
(C) (i), (iii), (iv), (v) oldest form of organisation.
(D) (i), (iii), (v) Select the correct statements from the
codes given below:
Answer: (D)
Codes:
(A) (ii) and (iii) are correct.

34. The following are the steps of
management control process: (B) (i), (ii) and (iv) are correct.
(i) Taking corrective action from standards (C) (i), (iii) and (iv) are correct
(ii) Establishing standards (D) All are correct.
(iii) Measuring actual performance Answer: (A)
(iv) Comparing performance against

standard
36. Which is not one of the stages in the
Select the correct sequence of these steps consumer buying-decision process?
from the codes given below:
(A) Purchase decision

(B) Post-purchase behaviour (C) The Standards of Weights and
Measures Act, 1976
(C) Problem recognition
(D) The Essential Commodities Act, 1955
(D) Cultural factors
Answer: (C)
Answer: (D)
40. In modern marketing, which of the

37. At which stage of product-life-cycle following functions of a distribution
are the pricing decisions most complex? middleman is gaining maximum
importance?
(A) Decline
(A) Making persuasive communication
(B) Growth
(B) Price negotiation
(C) Introduction
(C) Keeping adequate inventory
(D) Maturity
(D) Gathering market information
Answer: (D)
Answer: (D)
38. Which one is not an element of market

logistics? 41. Which method of setting the
advertising budget of a company is
(A) Inventory considered to be the most scientific?
(B) Order-processing (A) All-you-can-afford method
(C) Warehousing (B) Percentage of sales method
(D) Supply chain management (C) Competitive-parity method
Answer: (D) (D) Objectives and tasks method
Answer: (D)
39. Under which legislation, the

manufacturers and distributors are required
to declare Maximum Retail Price (MRP) 42. Match the items of List – I with those
on packaged commodities? of List – II and indicate the correct
combination from the codes given below:
(A) The Bureau of Indian Standards Act,
1986 List – I
(B) The Consumer Protection Act, 1986 List – II

(i) AIDA The direct costs of such financial distress
Model may be
(a) Consumer behaviour
(A) 1 and 4
(ii) Hierarchy of effects
model (b) Marketing (B) 2 and 3
communication www.n etu gc.co m
(C) 1 and 2
(iii) Howard and Sheth
model (c) (D) 3 and 4
Consumer buying-decision process
Answer: (C)
(iv) Information
search (d)
Advertising effectiveness
44. Mutually exclusive projects can be
Codes: more accurately ranked as per
(i) (ii) (iii) (iv) (A) Internal rate of return method
(A) (a) (b) (c) (d) (B) Net Present Value Method
(B) (b) (c) (d) (a) (C) Modified Internal Rate of Returns
Method
(C) (b) (d) (a) (c)
(D) Accounting or Average Rate of Return
(D) (d) (a) (c) (b) Method
Answer: (C) Answer: (B)
43. Inability of the firm to meet its 45. Which one of the following does not
obligations results in financial distress constitute a Standalone Risk Analysis?
which may lead to bankruptcy resulting
into the following: (A) Simulation Analysis
1. Distress sale of assets at lower price. (B) Break-even Analysis
2. Legal and administrative costs for (C) Corporate Risk Analysis

bankruptcy.
(D) Scenario Analysis
3. Dilution of stakeholders’ commitment
to the firm. Answer: (C)
4. Stretching of payments to suppliers and

creditors.
46. Financial leverage in a firm is
positively affected by

(A) Intensity of tangible assets (D) (A) is correct, but (R) is wrong.
(B) Operating leverage Answer: (A)
(C) Profitability
(D) Tax Rate www.netugc .com 49. Dividend irrelevance hypothesis is

implied in the
Answer: (A)
(A) Traditional Model
(B) Walter Model

47. Which combination of the following
two statements (A) and (R) is correct? (C) Gordon Model
Assertion (A): The IRR of a project is the (D) M.M. Model

discount rate which reduces its NPV to
zero. Answer: (D)
Reason (R): A project is worth accepting if

the IRR exceeds the cost of capital.
50. Which one of the following does not
Codes: serve the main objective of performance
appraisal?
(A) (A) is right, but (R) is wrong.
(A) Developmental uses
(B) Both (A) and (R) are correct.
(B) Administrative uses
(C) (A) is wrong, but (R) is correct.
(C) Ethical and moral values
(D) Organisational objectives
Answer: (B)
Answer: (C)
48. Assertion (A): A company should pay

minimum dividend to its shareholders. 51. Statement (I): Job evaluation is a
technique of assessing the worth of each
Reason (R): Dividends are heavily taxed job in comparison with others throughout
than capital gains. an organization.
Codes: Statement (II): Job evaluation and job

rating are one and the same for employees’
(A) Both (A) and (R) are correct. appraisal purposes.
(B) Both (A) and (R) are incorrect. Codes:
(C) (A) is not correct, but (R) is correct.

(A) Statement (I) is correct, but Statement (i) (ii) (iii) (iv)
(II) is incorrect.
(A) (a) (b) (c) (d)
(B) Statement (II) is correct, but Statement
(I) is incorrect. (B) (d) (c) (b) (a)
(C) Both the Statements (I) and (II) are (C) (c) (d) (b) (a)
correct.
(D) (b) (a) (d) (c)
(D) Both the Statements (I) and (II) are
incorrect. Answer: (D)
Answer: (A)
53. Assertion (A): Merit rating of an

employee is the process of evaluating the
52. Match the items of List – I with the employees performance on the job in terms
items of List – II and select the correct of the requirements of the job.
answer:
Reason (R): Employees’ merit rating is a
List – I technique for fair and systematic
evaluation of an employee’s capacities and
List – II abilities and performance on the specific
job.
(i) Job Rotation
(a) Involves Codes:
conscious efforts, to organise tasks, duties
and responsibilities into a unit of work to (A) Both (A) and (R) are correct, and (R)
achieve certain objectives. is the right explanation of (A).
(ii) Job Design (B) Both (A) and (R) are correct, but (R) is
(b) not the right explanation of (A).
Involves movement of employees from job
to job (C) Both (A) and (R) are incorrect.
(iii) Job (D) (R) is correct, but (A) is incorrect.

Evaluation
(c) Seeks to improve both task efficiency Answer: (B)
and human satisfaction and more
opportunity for individual growth
(iv) Job 54. The major provisions for employees’

Enrichment health and safety are contained in
(d) The formal process by which the
relative worth of various jobs in the (A) The Industrial Disputes Act, 1947
organisation is determined for pay
purpose. (B) The Factories Act, 1948
Codes:

(C) The Industrial Employment (Standing List – I
Orders) Act, 1946
List – II
(D) The Employees’ Compensation Act,
1923 (i) Abraham
Maslow (a)
Answer: (B) Achievement Motivation Theory
(ii) Herzberg
(b)
55. Indicate your choice through the codes ERG Theory
given below:
(iii) Alderfer
1. A club is an industry under the (c)
Industrial Disputes Act, 1947 Two Factor Theory
2. Factory as defined under the Factories (iv) McClelland

Act, 1948 includes a mine. (d)
Need Hierarchy Theory
3. For purpose of the payment of bonus to
employees, the gross profits earned by a Codes:
bank is to be calculated in the manner
specified in Schedule – I of the Payment of (i) (ii) (iii) (iv)
the Bonus Act, 1965.
(A) (a) (b) (c) (d)
4. Various labour laws do not apply to
public sector undertakings. (B) (d) (c) (b) (a)
Codes: (C) (c) (b) (a) (d)
(A) While 1 and 2 are correct, others are (D) (d) (c) (a) (b)
not.
Answer: (B)
(B) All the statements are correct.
(C) Only 1 is correct, others are incorrect.

57. Assertion (A): The Central Bank of the
(D) Only 1 is incorrect, all others are country is responsible to maintain stability
correct. of the monetary standard which involves
currency circulation
Answer: (A)
Reason (R): The Central Bank is the only
authorized entity to do so.
56. Match the items of List – I with the Codes:

items of List – II and select the correct
answer: (A) (A) and (R) both are correct.
(B) (A) and (R) both are incorrect.

(C) (A) is correct, but (R) is incorrect. (A) Industrial Finance Corporation of
India
(B) Ministry of Finance
Answer: (C)
(C) Reserve Bank of India
(D) National Bank for Agriculture and

58. Identify the quantitative credit control Rural Development
methods among the following:
Answer: (D)
(i) Bank Rate
(ii) Credit Rationing

60. PIN in banking transaction is known as
(iii) Open Market Operations
(A) Postal Index Number
(iv) Variable Reserve Ratio
(B) Permanent Identification Number
(v) Selective Credit Control
(C) Personal Identification Number
(vi) Liquidity Ratio
(D) Public Interlocking Numeric
Codes:
Answer: (C)

61. Reserve Bank of India was
(C) (i), (ii), (v) and (vi) nationalized on
(D) (i), (iii), (iv) and (vi) (A) January 26, 1948
Answer: (D) (B) January 01, 1949
(C) January 26, 1950
59. The following activities are mainly (D) January 01, 1956
related to which organization?
Answer: (B)
(i) Micro Finance
(ii) Rural Finance

62. When a banking company is placed
(iii) Self Help Groups under moratorium under Section 45 of the
Banking (Regulation) Act, 1949, the RBI
(iv) Cooperative Banks Finance must prepare a scheme of
(A) VRS for staff

(B) Capital Buy-Back 64. The main features of TRIMS are:
(C) Reconstruction of the company or (i) All restrictions on foreign capital are
amalgamation with any other bank imposed.
(D) IPO of the bank (ii) No restriction is imposed on any area

of investment.
Answer: (C)
(iii) Restrictions on repatriation of
dividend is eliminated.
63. Match the following items of List – I (iv) Imports of raw material is allowed
with List – II: freely.
List – I (v) No limit on the extent of foreign

investment.
List – II
Indicate the correct combination
(i) SWIFT
(A) (i), (ii), (iii) and (v)
(a) 1996
(ii) NEFT
(C) (iii), (iv) and (v)
(b) 1988
(D) (iv) and (v)
(iii) BASEL I
Accord (c) Answer: (B)
1973
(iv) BASEL II
Accord 65. Assertion (A): TRIPS requires an
(d) 2004 understanding about the scope of the new
patent regime.
Codes:
Reason (R): Patent protection will be
(i) (ii) (iii) (iv) extended to micro organisms, non-
biological and micro-biological processes
(A) (a) (b) (c) (d) and plant varieties.
(B) (b) (c) (a) (d) Codes:
(C) (d) (c) (b) (a) (A) (A) and (R) are not related with each
other.
(D) (c) (a) (d) (b)
(B) (R) is related with (A).
Answer: (B)
(C) (A) is independent of (R).

(D) While (R) is related with TRIMS, (A) (C) Both (A) and (R) are not correct.
is related with TRIPS.
(D) (A) is correct, but (R) is not correct.
Answer: (A)
Answer: (B)
66. Possible impact of WTO on various

aspects of the Indian economy: 68. Match the items of List – I and items
of List – II and select the correct answer:
(i) Quantitative restriction will be allowed.
List – I
(ii) Second hand cars will be imported.
List – II
(iii) There will be dumping of Chinese
goods. (i) Free Trade
Area (a)
(iv) Increase in population. MERCOSUR
(v) Child labour exploitation (ii) Customs

Union (b)
(vi) Unemployment will increase European Union
Which combination is appropriate? (iii) OEEC
(A) (i), (ii), (iii) (c) EFTA
(B) (iii), (iv), (v) (iv) Common

Market (d)
(C) (ii), (iii) & (vi) Marshall Plan
(D) (iv), (v) & (vi) Codes:
Answer: (C) (i) (ii) (iii) (iv)
(A) (a) (b) (c) (d)
67. Assertion (A): Economic integration (B) (b) (d) (a) (c)
abolishes cross-national economic
discrimination. (C) (c) (a) (d) (b)
Reason (R): Geographical proximity is an (D) (d) (c) (b) (a)

important reason for economic integration.
Answer: (C)
Codes:
(A) (R) does explain (A).

69. Assertion (A): A futures contract
(B) Both (A) and (R) are correct. specifies in advance the exchange rate to

be used, but it is not as flexible as a Answer: (C)
forward contract.
Reason (R): A futures contract is for

specific currency amount and a specific (B) Rs. 7,50,000
maturity date.
(C) Rs. 6,80,000
Codes:
(D) Rs. 41,600
(A) (R) is a correct explanation of (A).
Answer: (D)
(B) (R) is not a correct explanation of (A).
(C) (A) and (R) are not related with each

other. 71._______________ are based on such
things as geographic areas, religions,
(D) (R) is irrelevant for (A).
nationalities, ethnic groups, and age.
Answer: (A) A) Multilingual needs
B) Cultures
70. Out of the following, which are the C) Subcultures

important objectives of IMF?
D) Product adaptation requirements
(i) To promote exchange rate stability
Ans: C
(ii) To create standby reserves
Q.72.Marketing managers should adapt the
marketing mix to ___________________ and
(iii) To print International currency notes
constantly monitor value changes and
(iv) To establish a multilateral system of differences in both domestic and global
payments.
markets.
(v) To maintain orderly exchange rate
stability A) Sales strategies
B) Marketing concepts
(vi) To create employment
C) Cultural values
Codes:
D) Brand images
(A) (ii), (iv), (v), (vi)
Ans: C
(B) (iii), (v), (vi)
Q.73._____________ has become
(C) (i), (ii), (iv), (v) increasingly important for developing a
marketing
(D) (i), (ii), (v), (vi) strategy in recent years.

A) Change in consumers’ attitudes Q.76.Many sub cultural barriers are
decreasing because of mass communication,
B) Inflation of the dollar mass transit,
C) The concept and the brand and ________________
D) Age groups, such as the teen market, baby A) The rising unemployment situation
boomers, and the mature market
B) An influence of political power
Ans: D
C) The use of new technology
Q.74.Which of the following is an example of a
social influence on consumer behavior? D) A decline in the influence of religious values
A) The fashion editor of Seventeen magazines Ans: C

writes that any teen who wants to be
Q.77.Different social classes tend to have
well-dressed for the first day of school must different attitudinal configurations and _______
wear a shirt that shows her that
bellybutton influence the behavior of individual members.
B) The manufacturer of a line of aromatherapy A) Personalities

candles markets them at very
B) Values
exclusive stores
C) Finances
C) When Arne went to the store to buy a new
dress for Easter, she decided not to buy D) Decision makers
anything because of the crowded conditions of

the store
D) Billie purchased a pair of Honey brand

clogs instead of the Birkenstocks she wanted
because the Birkenstocks were too expensive
Ans: A
Q.75.Which of the following is the most

valuable piece of information for determining
Q.77. Which of the following would be the best
the social class of your best friend's parents?
illustration of a subculture?
A) The number of years schooling that they A) a religion

had
B) a group of close friends
B) Their ethnic backgrounds
C) your university
C) Their combined annual income
D) a fraternity or sorority
D) Their occupations
Ans: A
Ans: D

Q.78. The relatively homogeneous and Which of the following personal characteristics
enduring divisions in a society, which are is likely to have had the most influence on
hierarchically
Gary's preferences during his high school
ordered and whose members share similar days?
values, interests, and behavior constitute
A) education
________.
B) age
A) a culture
C) income
B) a subculture
D) gender
C) a social class
Ans: B
D) a family
Q.82. Marriage, childbirth, and divorce
Ans: A constitute the ________ that shape the
consumption
Q.79. A person's ________ consist(s) of all the
groups that have a direct (face-to-face) or pattern of individuals.
indirect influence on his/her attitudes or A) psychological life cycle

behavior.
B) product life cycle
A) subculture
C) social status
B) family
D) critical life events
C) social class
Ans: D
D) refere
Q.83. Identify an economic circumstance that
Q.80. The family in a buyers life consisting of can greatly affect any product or brand choice.
parents and siblings is the ________.
A) retirement
A) family of procreation
B) values
B) family of influence
C) lifestyle
C) family of efficiency
D) borrowing power
D) family of orientation
Ans: D
Ans: D
Q.84. ________ refers to a set of
Q.81. Purchasing family when Gary was a high distinguishing human psychological traits that
school student, he enjoyed rock music and lead to
regularly purchased hip clothing sported by his relatively consistent and enduring responses
favorite rock band. However, five years to environmental stimuli.
later, when Gary became an accountant, his A) Image

preference shifted toward formal clothing.
B) Personality

C) Psychological transformation A) esteem
D) Lifestyle B) self-actualization
Ans: B C) social
Q.85.Consumers often choose and use brands D) safety

that have a brand personality consistent with
ANS: B
how they see themselves, also known as the
________ Q.87.As Rita scans the yellow pages section
of her phone book looking for a florist, she
A) actual self-concept sees
B) ideal self-concept several other products and services

advertised. Though interesting on first glance,
C) others' self-concept she
D) prohibitive self-concept quickly returns to her primary task of finding a

florist. The items that distracted her from
ANS: A
her initial search were most likely stored in
which of the following types of memory?
Q.86.________ portrays the "whole person"
interacting with his or her environment.
A) Short-term memory
A) Attitude
B) Long-term memory
B) Personality
C) Middle memory
C) Lifestyle
D) Subconscious memory
D) Self-concept
Ans: A
ANS: C
Q.89.All those factors particular to a time and
Q.87.Marketers who target consumers on the place that do not follow from knowledge of the
basis of their ________ believe that they can
stable attributes of the consumer and the
influence purchase behavior by appealing to stimulus and that have an effect on current
people's inner selves.
behavior are known as _____.
A) core values
A) situational influence
B) sophistication
B) motivators
C) money constrain
C) consumption triggers
D) social class
D) consumption influencers
ANS: A
Ans: A
Q.86.At the top of Maslow's hierarchy of needs
(shown as a pyramid in the text) are Q.90.Which of the following also includes a
situation-specific component?
________ needs.

A) personality D) Self-actualization needs
B) self-concept Ans: C
C) involvement Q.95.Understanding of consumer needs and

then develops a marketing mix to satisfy these
D) demographics
needs.
Ans: C
A) The marketing concept
Q.92.Which of the following is a situation in
which consumer behavior occurs? B) The strategic plan
A) communications situation C) The product influences
B) purchase situation D) The price influences
C) usage situation Ans: A
D) All of the above Q.96.________________ is one of the most

basic influences on an individual’s needs,
Ans: D wants,
Q.93.Which of the following is NOT a situation and behavior.

in which consumer behavior occurs?
A) Brand
A) communications situation
B) Culture
B) purchase situation
C) Product
C) usage situation
D) Price
D) all of the above are situations in which
consumer behavior occurs Ans: B
Ans: D Q.97.In terms of consumer behavior; culture,

social class, and reference group influences
Q.94.The headline for the Rockport shoes ad
reads, “I'm comfortable being the greatest that have been related to purchase and
_______________.
ever was or will be. Be comfortable.
Uncompromised. Start with your feet.” The ad A) Economic situations
shows a picture of Muhammad Ali, world B) Situational influences

famous boxer. In terms of Maslow's hierarchy,
C) Consumption decisions
this ad was designed to appeal to the
consumer's _______________. D) Physiological influences
A) Psychological needs Ans: C
B) Need for esteem Q.98.___________ develop on the basis of

wealth, skills and power.
C) Safety needs
A) Economical classes

B) Purchasing communities (B) Producing or manufacturing a ‘new
article’ in an existing industrial
C) Competitors undertaking.
D) Social classes
(C) Establishing a new undertaking.
Ans: D
Q.99._____________ (is) are transmitted
through three basic organizations: the family, Answer: (D)
religious organizations, and educational

institutions; and in today’s society,
2. Match the items of List-I with the items
educational institutions are playing an
increasingly greater role in this regard.
of List-II and select the correct answer.
A) Consumer feedback List – I
B) Marketing information systems List – II
C) Market share estimates (i) Political and Legal Environment

(a) Important for
D) Cultural values industries directly depending on imports or
exports.
Ans: D
(ii) Demographic Environment
Q.100.In large nations, the population is bound
to lose a lot of its homogeneity, and thus (b) Close relationship
with the economic system and economic
_________________ arise. policy.
A) Multilingual needs (iii) Economic Environment

(c) Related to
B) Cultures natural resources.
C) Subcultures
(iv) Geographical and Ecological
Environment (d) Occupational and
spatial mobilities of population having
Ans: C implications for business.
MOCK -8 Codes:
1. Under the provisions of the Industries (i) (ii) (iii) (iv)

(Development and Regulation) Act, 1951,
a licence is necessary for (A) (b) (d) (c) (a)
(A) Changing the location of an existing (B) (b) (d) (a) (c)
industrial undertaking.
(C) (a) (b) (c) (d)
(D) (a) (b) (d) (c)

Answer: (B) (ii) National Securities Depository Limited
(b) Facilitation of equal access to
investors across the country.
3. Match the items of List-I with the items (iii) Securities and Exchange Board of
of List-II and select the correct answer: India (c) To foster the
development of an active secondary
List – I List – II market for Government Securities.
(i) SLR (a) Working in the field of (iv)

consumer protection. SecuritiesTradingCorporationofIndia
(d) Abolition ofCapital issuescontrol
(ii) SIDBI (b) Credit control. and retaining the sale authority for new
capital issues.
(iii) CUTS (c) Industrial policy.
Codes:
(iv) ILPIC (d) Facilitating Small Scale
Industries. (i) (ii) (iii) (iv)
Codes: (A) (b) (a) (d) (c)
(i) (ii) (iii) (iv) (B) (a) (b) (c) (d)
(A) (a) (c) (d) (b) (C) (a) (b) (d) (c)
(B) (b) (d) (a) (c) (D) (d) (c) (b) (a)
(C) (a) (b) (c) (d) Answer: (A)
(D) (a) (c) (b) (d)
Answer: (B) 5. The United Nations Conference on

Trade and Development (UNCTAD) was
set up in
4. Match the following: (A) 1944
List – I (B) 1954
List – II (C) 1960
(i) National Stock Exchange (D) 1964

(a) Marks the
beginning of the process of Answer: (D)
dematerialisation of shares of the
participating companies.

6. Indicate the ground on which a (B) Return on sales
complaint under the Consumer Protection
Act, 1986, shall be invalid. (C) EVA
(A) A product having short weight. (D) All of the above
(B) A service provided free of cost. Answer: (D)
(C) A misleading advertisement given in

newspaper.
9. Social Balance Sheet shows
(A) Social costs
Answer: (B)
(B) Social revenues
(C) Value of employees of the organisation

7. Out of the following, which are the four
components of food security? (D) All of the above
(i) Food availability Answer: (C)
(ii) Food market
(iii) Food accessibility 10. Which of the following comes under

efficiency ratios?
(iv) Food utilization
(A) Average collection period
(v) Food credit
(B) Inventory turnover ratio
Codes:
(C) Fixed assets turnover ratio
(A) (iii), (iv) and (v)
(B) (i), (iii) and (iv)
Answer: (D)
(C) (i), (ii) and (iii)
(D) (i), (ii) and (iv) lists:
Answer: (B) List – I
List – II
8. Performance evaluation of a (i) Statement of changes in Working

responsibility centre can be done by Capital (a) Cash Flow Statement
(A) ROI

(ii) Deferred Tax (B) (b) (a) (d) (c)
(b)
Fixed Assets (C) (c) (d) (a) (b)
(iii) Three activities (D) (c) (d) (b) (a)

(c) Funds
Flow Statement Answer: (A)
(iv) Impairment Loss

(d) Balance
Sheet 13. Given below are two statements, one
Codes: labelled as Reason (R).
(i) (ii) (iii) (iv) Assertion (A): Only the relevant costs
should be taken into consideration for
(A) (a) (b) (c) (d) decisionmaking.
(B) (c) (d) (b) (a) Reason (R): All variable costs are relevant
costs and all fixed costs are irrelevant
(C) (c) (d) (a) (b) costs.
(D) (d) (c) (a) (b) In the above statements, which one
alternative of the following is correct?
Answer: (C)
Codes:

lists and indicate the correct answer: (B) Only (A) is correct, but (R) is wrong.
List – I List – II (C) Only (R) is correct, but (A) is wrong.
(i) Earning ability of firm (a) Basis of (D) Both (A) and (R) are wrong.
Accounting
Answer: (B)
(ii) Conservatism (b) P/V ratio
(iii) Cash profit (c) Cash

flow statement 14. Given below are two statements, one
(iv) Cash and Accrual (d) Prudence labelled as Reason (R):
Codes: Assertion (A): Variance analysis is

undertaken for planning and control of
(i) (ii) (iii) (iv) costs.
(A) (b) (d) (c) (a)

Reason (R): Future costs are taken into (a) Economic profit (i) Total
consideration in budgeting and standard Revenue Explicit cost
costing.
(b) Accounting profit (ii) Buyers
In the above statements, which one and Sellers exchanging
alternative of the following is correct?
(c) Collusion/ Cartel (iii) Total
Codes: Revenue – Total cost
(A) Both (A) and (R) are correct and (R) is (d) Market (iv)
the Reason for (A). Oligopoly
(B) Both (A) and (R) are correct and (R) is Codes:
not the Reason for (A).
(a) (b) (c) (d)
(C) (A) is correct, but (R) is wrong. www.net ugc.co m
(A) (iii) (i) (iv) (ii)

(D) (A) is wrong, but (R) is correct.
(B) (i) (ii) (iii) (iv)
Answer: (B)
(C) (iv) (iii) (ii) (i)
(D) (ii) (iv) (i) (iii)

15. Assertion (A): Mark-up pricing is a
method of determining price. Answer: (A)
Reason (R): P = ATC + (m × ATC) is the

expression for that.
17. Which one is not the item of economic
Codes: cost to the business?
(A) (A) is correct but (R) is not correct. (A) Owner supplied resources.
(B) Both (A) and (R) are correct. (B) Market supplied resources.
(C) Both (A) and (R) are not correct. (C) Implicit costs.
(D) (R) is correct, but (A) is not correct. (D) Non-monetary opportunity costs of
using owner supplied resources.
Answer: (B)
Answer: (B)

items of List-II and select the correct 18. Demand must have the elements
answer.
(A) Desire
(B) Want

(C) Quantity, Price and Time (C) Price-Marginal cost
(D) All of the above (D) None of the above
21. Match the items of List-I and items of

List-II and select the correct answer.
19. Match the items of List-I and items of
List-II and select the correct code for the List – I List –
answer. II
List – I List – (a) Perfect competition (i)

II Different prices for the same product
(a) Utilitarian Approach (i) (b) Monopolistic competition (ii)

Marginal Rate of Substitution Dominant strategy
(b) Ordinal Approach (ii) (c) Oligopoly (iii)

Budget line & Indifference Curve Product differentiation
(c) Price- Consumption Curve (iii) (d) Discriminating Monopoly (iv)

U=f (x, y) Identical product
(d) Consumer Equilibrium (iv) Codes:

MRSxy = MRSyx
(a) (b) (c) (d)
Codes:
(A) (iv) (iii) (ii) (i)
(a) (b) (c) (d)
(B) (i) (ii) (iii) (iv)
(A) (i) (iv) (iii) (ii)
(C) (ii) (iv) (i) (iii)
(B) (ii) (iii) (iv) (i)
(D) (iii) (i) (iv) (ii)
(C) (iii) (i) (ii) (iv)
Answer: (A)
(D) (iv) (ii) (i) (iii)
Answer: (C)
22. If there are 8 possible classes under
consideration for goodness of-fit, the
number of degrees of freedom will be
20. The Learner Index measures
(A) 8
(A) Market power
(B) 7
(B) Price
(C) 6

(D) Cannot be determined from the given 25. Which of the following tests can be
information. based on the normal distribution?
Answer: (D) (A) Difference between independent

means
(B) Difference between dependant means

23. Identify from the following, the test
statistic for which the value of numerator (C) Difference between proportions
should always be greater than that of
denominator. (D) All of the above
(A) ‘Chi-square’ Answer: (D)
(B) ‘F’ value
(C) ‘Z’ value 26. From the following, identify one

situation where ‘F’ test cannot be used?
(D) ‘t’ value
(A) To compare more than two
Answer: (B) populations means.
(B) To test the hypothesis about a single

population variance.
24. Which of the following tests can be
applied to ordinal scale data? (C) To test the hypothesis about two-
population variance.
(i) Chi-square test
(D) To study about randomized block
(ii) ‘Z’ test design.
(iii) Kruskal-Wallis test Answer: (B)
(iv) Wilcoxon Mann-Whitney test
Codes: 27. Which statistical test should be applied

to test the effectiveness of ‘special
(A) (i), (ii) and (iii) coaching’ on the marks scored by the
students?
(B) (ii), (iv) and (iii)
(A) Paired‘t’ test
(C) (i), (iii) and (iv)
(B) ‘Chi-square’ test
(D) (i), (ii) and (iv)
(C) ‘Z’ test
Answer: (C)
(D) ‘F’ test
Answer: (A)

28. In a linear equation, y = a + bx, ‘a’ 31. A leader who identifies what
refers to subordinates need to do to achieve
objectives, clarify organizational roles and
(A) Slope tasks, set up an organization structure,
reward performance and provide for the
(B) Y-intercept social needs of their followers, is
(C) Dependant variable (A) A transformational leader
(D) Independent variable (B) A participative leader
Answer: (B) (C) A transactional leader
(D) An autocratic leader
29. Which among the following is the Answer: (C)

most popular approach for accomplishing
the results?
(A) Management by exception 32. Which of the following is not an

assumption of theory X?
(B) Reward system
(A) An average human being has an
(C) Management by objectives inherent dislike of work and will avoid it if
he can.
(D) Mentor system
(B) An average human being prefers to be
Answer: (C) directed, seeks to avoid responsibility, has
relatively little ambition, and wants
security above all.
30. The managerial function of organizing (C) An average human being learns under
involves proper conditions, not only to accept
responsibility but also to seek it.
www.netugc.co m
(A) Reviewing and adjusting plan in the

light of changing conditions. (D) Most people must be coerced,
controlled, directed and threatened with
(B) Establishing programme for the punishment to get them put forth adequate
accomplishment of objectives. effort.
(C) Creating structure of functions and Answer: (C)

duties to be performed.
(D) Getting things done through others.

33. If a network of interpersonal
Answer: (C) relationship that arise when people
associate with each other is an informal

organization, then find out which of the (B) Aldorfer
following is not an informal organization?
(C) Herzburg
(A) The “machine shop” group
(D) Vroom
(B) Customers’ group
Answer: (B)
(C) The “sixth floor” group
(D) The “Friday evening bowling” gang

36. Which segmentation approach is the
Answer: (B) most compatible with the spirit of the
marketing concept?
(A) Benefit sought

34. Which of the following are sources of
ethics? (B) Income
(i) Religion (C) Social class
(ii) Legal system (D) Family size
(iii) Economic system Answer: (A)
(iv) Culture
(v) Family system 37. The description of a product’s quality,

features, style, brand name and packaging
Select the correct answer from the codes identifiers the
given below:
(A) Actual product
(A) (i), (ii), (iii), (v)
(B) Augmented product
(B) (i), (ii), (iv)
(C) Core product
(C) (i), (iv), (v)
(D) Tangible product
(D) (i), (ii), (iii), (iv), (v)
Answer: (A)
Answer: (C)
38. Consider the following statements and

35. Which of the following has refined find out the correct alternative from the
Maslow’s theory of motivation by codes given below:
proposing a hierarchy of three needs?
(i) A firm’s marketing information system
(A) MeClelland is a component of its marketing research
system.

(ii) The most common forms of marketing (ii) Salesmen are born, not made.
researches conducted in most of the firms
are the measurement of market potential (iii) Physical distribution is an area where
and the analysis of market share. high cost-savings is possible.
(iii) Survey research is seldom used for Codes:

studying consumer perception and
attitudes. (A) (i) and (iii) are correct.
(iv) The concept of cognitive dissonance is (B) (i) and (ii) are correct.
relevant to study consumer’s post-purchase
behaviour. (C) (ii) and (iii) are correct.
Codes: (D) All are correct.
(A) All the statements are true. Answer: (A)
(B) All the statements are false.
(C) (i) is false and the rest are true. 41. Which form of retail outlet has the
highest operating costs?
(D) (ii) and (iv) are true and the rest are
false. (A) Super market
Answer: (D) (B) Consumer co-operative store
(C) Department store
39. In India, which pricing practice is not (D) Retail chain store
permissible?
Answer: (C)
(A) Penetrating pricing
(B) Skimming pricing

42. Consider the following statements and
(C) Predatory pricing indicate the correct alternative from the
codes given below:
(i) The product management system often
Answer: (C) turns out to be costly.
(ii) When customers belong to different

user groups with distinct buying
40. Consider the following statements and preferences and practices, a market
find out the correct alternative from the management organization is not suitable.
codes given below:
(iii) Advertising department has the closest
(i) A good salesman is one who can sell interface with the finance department of
refrigerator to an Eskimo. the company.

Codes: Answer: (A)
(A) (i) and (ii) are correct.
(B) (ii) and (iii) are correct. 44. Venture capital financing at starting
stage is generally not done through
(C) Only (i) is correct.
(A) Debt instruments
(D) All are correct.
(B) Deep discount bonds
Answer: (C)
(C) Equity shares
(D) Conditional loans

43. Match the statements in List-I with
dividend models in List-II as follows: Answer: (B)
List –
I
List – II 45. Match the statements in List-I with the
types of lease in the List-II as follows:
I Dividend Capitalisation Approach.
1. List – I
Traditional Model
List – II
II Dividend Policy has a bearing on the
share valuation. 2. I Lessor transfer all risks and rewards of an
Gardon Model asset to the lessee. 1.
Indirect lease
III Stock Market places more weight on
dividends than on retain earnings. 3. II Lessor transfers the assets to the lessee
Walter Model but bears the cost of maintenance 2.
Operating lease
IV Dividend pay-out is irrelevant to the
value of the firm. 4. III The owner of the asset sells it to the
Modigliani and Miller Model lessor who in turn leases it back to the
owner (now lessee)
Codes:
3. Finance lease
I II III IV
IV Lessor owns/ acquires the assets that
(A) 2 3 1 4 are leased to a given lessee.
4. Direct lease
(B) 1 2 4 3
Codes:
(C) 4 1 3 2
I II III IV
(D) 3 4 2 1
(A) 2 3 4 1

(B) 1 4 2 3 (B) Merger
(C) 3 2 1 4 (C) Equity Carve-out
(D) 4 1 3 2 (D) Disinvestment
46. Full details for the issue of ADRs by a 49. What combination of the following
company must be furnished within 30 days factors influences the working capital
from the date of its closure to requirement?
(A) Securities and Exchange Commission I Market Conditions

(SEC)
II Production Policy
(B) Reserve Bank of India (RBI)
III Firm’s goodwill
(C) Securities and Exchange Board of
India (SEBI) IV Supply conditions
(D) Company Law Board (CLB) Codes:
Answer: (B) (A) I, II and III
(B) II, III and IV
47. The degree to which the returns of the (C) I, III and IV
two securities change together, is reflected
by (D) I, II and IV
(A) Correlation Answer: (D)
(B) Leverage
(C) Covariance 50. Which of the followings are the

modern methods of performance
(D) Beta appraisal?
Answer: (C) (i). 360 degree performance appraisal.
(ii). Graphic rating scale.
48. The transfer by a company of one or (iii). Management by Objectives (MBO).

more of its business divisions to another
newly set up company is called (iv). Forced distribution method.
(A) Demerger

(v). Behaviourally Anchored Rating Scales Select the correct combination.
(BARS).
Select the correct answer from the codes
given below: (B) (i), (ii), (iii) and (v)
(A) (i), (ii), (iii) (C) (i), (ii), (iv), and (v)
(B) (ii), (iv), (v) (D) (i), (iii), (iv) and (v)
(C) (i), (iii), (v) Answer: (A)
(D) (iv), (ii), (i)
Answer: (C) 53. HRM is viewed as a management

process, consisting of four functional
activities:
51. Which of the following principle (i) Acquisition

serves as a warning to organisations not to
take the selection and promotion process (ii) Motivation
lightly?
(iii) Development
(A) Promotion Principle
(iv) Resolution of industrial disputes
(B) Drucker Principle
(v) Maintenance
(C) Validity Principle
Select the correct combination.
(D) Peter Principle
Answer: (D)
(B) (i), (ii), (iii) and (v)
(C) (i), (ii), (iv) and (v)

52. According to D. Katz morale has four
dimensions: (D) (i), (iii), (iv) and (v)
(i) Jobs satisfaction Answer: (B)
(ii) Satisfaction with wages and

promotional opportunities.
54. O C TA PA C stands for
(iii) Identification with company.
(A) Order, Co-ordination, Trust,
(iv) Pride in the work group. Authority, Personality and Cooperation.
(v) Top Management Support.

(B) Openness, Confrontation, Trust, (B) Statement of account for a specific
Authenticity, Pro-action and period.
Collaboration.
(C) Transfer of funds from one account to
(C) Organisation, Conflict, Team, another account.
Authority, People and Collaboration.
(D) Balance enquiry.
(D) Oneness, Compromise, Tress pass,
Authority, Protection and Combination. Answer: (A)
Answer: (B)
58. Which among the following is not a

category of Non-Performing Assets?
55. Technique of ‘Transaction Analysis’
was developed by (A) Substandard Assets
(A) Elton Mayo (B) Doubtful Debts
(B) Peter Drucker (C) Loss Assets
(C) Eric Berne (D) Devaluated Assets
(D) Adam Smith Answer: (D)
Answer: (C)
59. When a loan will be NPA?
56. Which one of the following methods is (A) Interest and/or loan instalments
not a demand forecasting method of overdue for more than 90 days.
Human Resource Planning?
(B) Account is out of order for more than
(A) Managerial judgement 90 days in case of overdraft/cash credit.
(B) Managerial grid (C) Bill remains overdue for more than 90
days.
(C) Work study techniques
(D) Statistical techniques
Answer: (D)
Answer: (B)
60. Assertion (A): “The problem of rural

57. Transaction of Internet Banking credit is not primarily one of rural credit, it
excludes may be said to be one of rural minded
credit.”
(A) Withdrawal of cash anywhere in India.

Reason (R): The Indian economy has yet
to come out of rural mentality.
62. Assertion (A): The Indian economy
Codes: could survive in the recent global recession
due to its strong banking system.
Reason (R): The Indian economy contains
(B) Both (A) and (R) are incorrect. a large amount of black money.
(C) (A) is correct, but (R) is incorrect. Codes:
(D) (R) is correct, but (A) is incorrect. (A) Both (A) and (R) are correct and (R) is
the explanation of (A).
Answer: (C)
(B) Both (A) and (R) are correct, but (R) is
not the correct explanation of (A).
61. Match the items of List-I with the (C) (R) is correct, but (A) is not the
items of List-II and select the correct appropriate assertion of (R).
answer:
(D) Both (A) and (R) are incorrect.
Answer: (B)
(i) Debit card (a) Several
storage
(ii) Credit card (b) Online 63. Assertion (A): Most of the
recovery of amount development banks in India have setup
private commercial banks after the
(iii) Electronic purse (c) Image introduction of capital adequacy norms.
processing use
Reason (R): Development banks in India
(iv) Cheque function (d) have not adhered to their basic objectives.
Revolving credit
Codes:
Codes:
(A) (A) and (R) both are correct, and (R) is
(i) (ii) (iii) (iv) correct explanation of (A).
(A) (c) (a) (d) (b) (B) (A) and (R) both are correct, but (R) is
(B) (a) (b) (d) (c)
(C) (d) (c) (a) (b)
(D) (d) (c) (b) (a)
Answer: (C)
Answer: (B)

64. Match the following items of List-I (v) New-global competitors.
with List-II:
(vi) End of the ‘cold war’ in 1990s.
List – I
Codes:
List – II
(A) (vi), (v), (iv) and (iii)
(a) Bretton woods conference
(i) (B) (vi), (iii), (ii) and (i)
1947
(C) (vi), (v), (ii) and (i)
(b) General Agreement on Trade and
Tariffs (ii) 1964 (D) (iv), (iii), (ii) and (i)
(c) ACCRA conference Answer: (C)
(iii) 1944
(d) United Nations Conference on Trade 66. Statement (I): Green Box subsidies
and Development (iv) 2008 include amount spent on Government
services such as research, disease control,
Codes: infrastructure and food security.
(i) (ii) (iii) (iv) Statement (II): Blue Box subsidies are
certain direct payments made to farmers,
(A) (b) (d) (a) (c) to limit production, and are certain
government assistance programmes to
(B) (b) (d) (c) (a) encourage agriculture and rural
development.
(C) (b) (c) (d) (a)
Codes:
(D) (c) (a) (b) (d) www.netugc.co m
(A) Statement (I) is correct, but (II) is not

Answer: (A) correct.
(B) Statement (II) is correct, but (I) is not

correct.
65. The forces that lend momentum to the
process of globalization have been (C) Both statements (I) and (II) are correct.
identified by Michael Porter include the
following: (D) Both statements (I) and (II) are
incorrect.
(i) Fluid global capital market.
Answer: (C)
(ii) Technological restructuring.
(iii) Decreasing religious command.

67. Assertion (A): The major economic
(iv) Ethnic decontrol. powers have succeeded in creating a new

international regime where the profits and Answer: (A)
the dominance of their transnational
corporations will be the decisive
consideration.
69. Which among the following is not
Reason (R): This regime will legitimise rightly explained?
the process of progressive erosion of the
sovereign economic space of the third- (i) M1 = Currency with the public +
world countries. demand deposits of the public.
(A) Both (A) and (R) are correct, and (R) (ii) M2 = M1 + Post Office Savings
is the right explanation of (A). Deposits.
(B) Both (A) and (R) are correct, but (R) is (iii) M3 = M1 + Time Deposits of the
not the right explanation of (A). public with Banks.
(C) Both (A) and (R) are incorrect. (iv) M4 = M3 + Total Post Office Deposits.
(D) (R) is correct, but (A) is not correct. (v) M1 = Narrow money
Answer: (B) (vi) M3 = Broad money
(A) Only (v) and (vi)
68. Assertion (A): The ‘Balance of (B) Only (i) and (iii)
Payments’ presents a classified record of
all receipts on account of goods exported, (C) Only (vi)
services rendered and capital received by
‘residents’ and payments made by them on (D) None of the above
account of goods imported and services
received from capital transferred to ‘non- Answer: (D)
residents’ or ‘foreigners”.
Reason (R): The ‘Balance of Payments’ of

a country is a systematic record of all 70. Which of the followings are not effects
economic transactions between the of dumping on importing country?
‘residents’ of a country and the rest of the
world. (i) Domestic industry might be affected
adversely by a decline in sales and profits.
(A) Both (A) and (R) are correct and (R) is
the right explanation of (A). (ii) If dumping is continued for a longer
period, survival of the domestic industry
(B) Both (A) and (R) are correct, but (R) is may be threatened.
(iii) Dumping may create BOP problems
(C) (R) is correct, but (A) is not correct. for the country.
(D) Both (A) and (R) are incorrect. (iv) It finds market for its surplus
production.

Codes: D) Analyze the market and select the best at
the lowest prices
Ans: B
(B) (ii), (iii) and (iv) Q.74.What is the middle class concerned
about?
(C) (iii) and (iv)
A) European travel and club memberships for
(D) Only (iv) tennis, golf, and swimming
Answer: (D) B) Prestigious schooling facility for their

children
C) Fashion and buying what experts in the

media recommend
71.__________ is the single factor that best
indicates social class. D) Buying only “value for money” products
A) Time Ans: C
B) Money Q.75.____________ is the definition of

reference groups.
C) Occupation
A) Groups that an individual looks to when
D) Fashion forming attitudes and opinions
Ans: C B) Groups of people who have been referred

to by someone they know
Q.72.14% of the population that is
differentiated mainly by having high incomes is C) Groups of office colleagues
classified as ______________ D) Chat groups on the internet
A) The working class Ans: A
B) The middle class Q.76.__________ are factors that have been

shown to affect consumer behavior.
C) Upper Americans
A) Brand name, quality, newness, and
D) Lower middle class complexity
Ans: C B) Advertising, marketing, product, and price
Q.73.In terms of consumption decisions, C) Outlets, strategies, concept, and brand

middle class consumers prefer to _________ name
A) Buy at a market that sells at a whole sale D) Quality, advertising, product positioning,
rates and strategy
B) Buy what is popular Ans: A
C) Buy only the brands which sell at affordable Q.77.The reason that higher prices may not
prices affect consumer buying is _______________.

A) Most consumers prefer brand names which B) A subculture influence
have higher prices
C) A secondary reference group
B) 70% of the total population looks for quality
services and is willing to pay higher prices D) Cultural values
C) Consumers believe that higher prices Ans: A

indicate higher quality or prestige
Q.81.As the mother of the groom, Ann was
D) Most consumers feel that the price is willing to wear the subdued-colored, tailored
actually affordable suit
Ans: C that the bride had selected for the wedding

until the sales clerk showed Ann a red offthe-
Q.78. ___________ are the groups that shoulder cocktail dress. Because the sales
individuals look to when forming attitudes and clerk kept telling Ann how great the
opinions. dress looked and because the price of the

dress was substantially lower than the suit Ann
A) Reference groups
bought the dress to wear to the wedding.
B) Teenage groups Assuming Ann really likes her son's fiancée
C) Religious groups and does not want to do anything to damage

her relationship with him or his bride,
D) Adult groups
Ann's decision to buy the red dress was a
result of ________________ influences.
Ans: A
A) Economic
Q.79.Secondary reference groups include
________________.
B) Marketing
A) Family and close friends
C) Reference group
B) Sports groups
D) Cultural
C) Ethnic and religious groups
Ans: B
D) Fraternal organizations and professional
associations Q.82.Sales of 40 to 75 percent off on
merchandise at Kmart stores that were being
closed
Ans: D
Q.80.When preparing Thanksgiving dinner last led many consumers who had not shopped at
year, Marissa worried that her parents would Kmart stores in a long time return to look
hate the fact that she served bought pumpkin for bargains. ____________ influences led to
pies rather than making her own. these bargain-hunters revisiting
Kmart stores.
In terms of social influences on her behavior,
Marissa was most concerned
A) Antecedent
with_________________.
B) Economic
A) A primary reference group

C) Infrastructural Q.86.Terence doesn't really like grapefruit but
when all of his friends ordered grapefruit
D) Marketing
martinis, he felt that to be part of the gang he
Ans: D needed to buy one for himself. Which
Q.83.Marketing strategies are often designed situational influence explains Terence's

to influence _______________ and lead to purchase of a grapefruit martini?
profitable exchanges. A) Its marketing mix
A) Consumer decision making B) Task features
B) Sales strategies C) Current conditions
C) Advertising strategies D) Social features
D) Export strategies Ans: D
Ans: A Q.87.The price of products and services often

influence whether _______________, and, if
Q.84.__________ refers to the information a
consumer has stored in their memory about so, which competitive offering is selected.
a product or service. A) Consumers will purchase them at all
A) Cognitive dissonance B) Consumers see a need to buy
B) Product knowledge C) Consumers will decide to buy immediately
C) Product research D) People would recommend the product
D) Marketing research Ans: A
Ans: B Q.88.________ can influence the consumers’

thoughts about products.
Q.85.One of the key tasks of marketers is
____________ and to create consumer A) Marketing and popularity
perceptions that the product is worth B) Advertising, sales promotions, salespeople,

purchasing. and publicity
A) To make products easily visible and C) Sales promotion, popularity, and marketing
available
D) Billboards
B) To promote sales of products
Ans: B
C) To differentiate their products from those of 89. A sustained or sustainable competitive
competitors advantage requires that:
a. the value creating strategy be in a
formulation stage.
D) To do marketing surveys
b. competitors be simultaneously implementing
the strategy.
Ans: C c. other companies not be able to duplicate the
strategy.

d. average returns be earned by the company. 94. In contrast to the industrial organization
Answer: c. other companies not be able to model, in a resource-based model, which of
duplicate the strategy. the following factors would be considered
a key to organizational success?
90. Investors in a company judge the
a. unique market niche.
adequacy of the returns on their
b. weak competition.
investment in relation to: c. economies of scale.
a. the returns on other investments of similar d. loyal employees.
risk.. Answer: d. loyal employees.
b. the stock market's overall performance.
c. the initial size of the investment. 95. The resource-based model of the firm
d. the prime interest rate. argues that:
Answer: a. the returns on other investments of a. all resources have the potential to be the
similar risk.. basis of sustained competitive
advantage.
91. The strategic management process is: b. resources are not a source of potential
a. a set of activities that is guaranteed to competitive advantage.
prevent organizational failure. c. the key to competitive success is the
b. a process concerned with a firm's structure of the industry in which the firm
resources, capabilities, and competencies, but competes.
not the conditions in its external environment. d. resources that are valuable, rare, costly to
c. a set of activities that to date have not been imitate, and non-substitutable form the basis of
used successfully in the not-for-profit sector. a firm's core competencies.
d. a dynamic process involving the full set of Answer: d. resources that are valuable, rare,
commitments, decisions, and actions related to costly to imitate, and non-substitutable form
the firm. the basis of a firm's core competencies.
Answer: d. a dynamic process involving the full
set of commitments, decisions, and actions 96. The I/O model and the resource-based
related to the firm. view of the firm suggest conditions that
firms should study in order to:
92. Which of the following is NOT an a. compete in domestic but not international
assumption of the Industrial Organization,
markets.
or I/O, model?
b. examine strategic outputs achieved mainly
a. Organizational decision makers are rational in the last 5-year period.
and committed to acting in the firm's best c. engage in different sets of competitive
interests. dynamics.
b. Resources to implement strategies are not d. develop the most effective strategy.
highly mobile across firms. Answer: d. develop the most effective strategy.
c. The external environment is assumed to
impose pressures and constraints that 97. Strategic mission:
determine the strategies that result in superior a. is a statement of a firm's unique purpose
performance. and scope of operations.
d. Firms in given industries, or given industry b. is an internally-focused affirmation of the
segments, are assumed to control similar organization's societal and ethical goals.
strategically relevant resources. c. does not limit the firm by specifying the
Answer: d. Firms in given industries, or given industry in which the firm intends to compete.
industry segments, are assumed to control d. is developed by a firm before the firm
similar strategically relevant resources. develops its strategic intent.
Answer: a. is a statement of a firm's unique
93. Which of the following is NOT an purpose and scope of operations.
assumption of the resource-based model?
a. Each firm is a unique collection of resources 98. The interests of an organization's
and capabilities. stakeholders often conflict, and the
b. All firms possess the same strategically organization must prioritize its
relevant resources. stakeholders because it cannot satisfy
c. Resources are not highly mobile across them all. The ________ is the most critical
firms. criterion in prioritizing stakeholders.
d. Firms acquire different resources and a. power of each stakeholder
capabilities over time. b. urgency of satisfying each stakeholder
Answer: b. All firms possess the same c. importance of each stakeholder to the firm
strategically relevant resources.

d. influence of each stakeholder Answer: d. a group of firms producing products
Answer: a. power of each stakeholder that are close substitutes.
104. Which of the following is NOT an entry
barrier to an industry?
a. expected competitor retaliation
99. The __________ environment is composed b. economies of scale
of elements in the broader society that can c. customer product loyalty
influence an industry and the firms within it. d. bargaining power of suppliers
a. general Answer: d. bargaining power of suppliers
b. competitor 105. Switching costs refer to the:
c. sociocultural a. cost to a producer to exchange equipment
d. industry in a facility when new technologies emerge.
Answer: a. general b. cost of changing the firm's strategic group.
100. The environmental segments that c. one-time costs suppliers incur when selling
comprise the general environment typically to a different customer.
will NOT include: d. one-time costs customers incur when
a. demographic factors. buying from a different supplier
b. sociocultural factors. Answer: d. one-time costs customers incur
c. substitute products or services. when buying from a different supplier
d. technological factors. 106. Suppliers are powerful when:
Answer: c. substitute products or services. a. satisfactory substitutes are available.
101. Which of the following is an b. they sell a commodity product.
opportunity for an entrepreneur who c. they offer a credible threat of forward
wishes to open a business doing integration.
therapeutic massage in his small d. they are in a highly fragmented industry.
community? Answer: c. they offer a credible threat of
a. the average age of the population in his forward integration.
community is high 107. Buyers are powerful when:
b. the level of unemployment in his community a. there is not a threat of backward integration.
is high b. they are not a significant purchaser of the
c. a chiropractor and two independent physical supplier's output.
therapists located in his community c. there are no switching costs.
d. the average income level of the population d. the buyers' industry is fragmented.
in his community is low Answer: c. there are no switching costs.
Answer: c. a chiropractor and two independent
physical therapists located in his community 108. Upper limits on the prices a firm can
charge are impacted by:
102. The economic environment refers to: a. expected retaliation from competitors.
a. the nature and direction of the economy in b. the cost of substitute products.
which a firm competes or may compete. c. variable costs of production.
b. the economic outlook of the world provided d. customers' high switching costs
by the World Bank. Answer: b. the cost of substitute products.
c. an analysis of how the environmental
movement and world economy interact.
MOCK TEST -9
d. an analysis of how new environmental
regulations will affect our economy.
Answer: a. the nature and direction of the 1. The first macro-environmental force that
economy in which a firm competes or may a business firm generally monitors is
compete.
103. An industry is defined as: (A) Economic environment
a. a group of firms producing the same item.
b. firms producing items that sell through the (B) Demographic environment
same distribution channels.
c. firms that have the same seven digit
standard industrial code. (C) Technological environment
d. a group of firms producing products that are
close substitutes. (D) International, Political environment

Answer: (B) (C) Right to a physical environment that
will protect and enhance quality of life.
(D) Right to seek redressal of legitimate

2. Which of the following statements is complaints.
true?
Answer: (C)
(A) The highest growth rate in India is in
the Manufacturing Sector.
(B) Agricultural Sector has the highest 5. A consumer can file a complaint under
share in the GDP in India. the Consumer Protection Act, 1986, on
any of the following grounds except:
(C) The biggest source of Central
Government’s revenue is Central Excise. (A) Sale of defective goods
(D) None of the above. (B) Provision of deficient service
Answer: (C) (C) Charging very high price
(D) Unfair trade practice
3. Which of the following statements is Answer: (C)

true?
(A) The Competition Commission of India

is headed by a person having Judicial 6. Financial statements provide a true and
background. (B) The definition of the term fair view if
‘goods’ as given in the Competition Act,
2002, is the same as given in the Sale of (A) It is free from any material error and
Goods Act, 1930. bias.
(C) Both (A) and (B) are true. (B) It is prepared using the appropriate
accounting policy and applicable
(D) None of the above is true. accounting standards.
Answer: (D) (C) It is prescribed in the format

prescribed by the regulator or, in the
absence of a prescribed format, it is
prepared in a manner that facilitates
4. Which one of the following is not analyses of the financial position and the
included in the Consumer Rights as per the performance of the reporting enterprise.
Consumer Protection Act, 1986?
(D) It conforms to all of the above (A), (B)
(A) Right to be protected against and (C).
marketing of hazardous goods and
services. Answer: (D)
(B) Right to be heard.

7. Which of the formula is used to (B) Labour-mix variance
calculate Absolute Liquid Ratio is?
(C) Labour-yield variance
(A) Current Assets, Loans & Advances-
Inventories (D) All of the above
Current Liabilities & Provisions-Bank Answer: (D)

Overdraft
(B) Current Assets, Loans & Advances

10. An investment centre is a
Current Liabilities & Provisions responsibility centre where the manager
has control over
(C) Absolute Liquid Assets
(A) Costs
Current Liabilities
(B) Costs and profits
(D) Absolute Liquid Assets
(C) Costs, profits and product quality
Quick Liabilities
(D) Costs, profits and assets
Answer: (C)
Answer: (C)
11. According to H.A. Simon, if a firm

8. A company sells its product at Rs. 15 fails to achieve its target initially, it results
per unit. In a period if it produces and sells in
8,000 units, it incurs a loss of Rs. 5 per
unit. If the volume is raised to 20,000 units (A) Search behaviour
it earns a profit of Rs. 4.
(B) Sense of helplessness
Variable cost per unit will be
(C) Appropriate revision of aspiration
(A) Rs. 9 per unit level.
(B) Rs. 4.5 per unit (D) Sacking of its managerial team
(C) Rs. 5 per unit Answer: (A)
(D) Rs. 6 per unit
Answer: (C) 12. When the demand curve is relatively

highly elastic, the marginal revenue is
(A) Zero
9. Which of the following is a sub variance
of labour efficiency variance? (B) Unity
(A) Idle time variance (C) Positive

(D) Negative (D) The loss of the reward in the next best
use of that resource.
Answer: (C)
Answer: (D)
13. In which one of the following market

situations the practice of price rigidity is 16. Find chi-square value for the
found? following:
(A) Perfectly competitive market Event Expected

Observed
(B) Monopolistic competitive market
X 60
(C) Oligopoly market 52
(D) Discriminating monopoly market Y 40

48
Answer: (C)
Choose the correct answer from the
following options:
14. During short-run, the optimum level of (A) 2.67

output corresponds to that level of output
where (B) 2.77
(A) MC is the minimum (C) 3.33
(B) AVC is the minimum (D) 4.33
(C) AC is the minimum Answer: (A)
(D) AFC stops declining
Answer: (C) 17. A time series is a set of data collected

at
(A) Random intervals

15. The opportunity cost is a term which
describeswww. netu gc.co m (B) Regular intervals
(A) A bargain price for a factor of (C) Convenient intervals

production.
(B) Production cost related at the optimum
level of production. Answer: (B)
(C) Average variable cost.

18. Given the following data calculate the (i) Data Storage
regression coefficient of X on Y. Pearson’s
correlation coefficient = + 0.8. Regression (ii) Data Validation
coefficient of Y on X = 0.8
(iii) Data Capture
Choose the correct answer from the
following: (iv) Report Generation
(A) 0.32 (v) Data Manipulation
(B) 0.64 (A) (i), (ii), (iii), (iv), (v)
(C) 0.80 (B) (ii), (i), (iii), (iv), (v)
(D) 0.82 (C) (iii), (i), (ii), (iv), (v)
Answer: (C) (D) (iii), (ii), (i), (v), (iv)
Answer: (D)
19. Which kind of test from the following 21. Which of the following steps are
options is the right test to use when the essential in the staffing process?
hypotheses for testing are stated as:
1. Hiring the right kind of people.
H0: Population mean is equal to the sample
mean. 2. Firing the non-performing employees.
H1: Population mean is not equal to the 3. Developing skills of the employees
sample mean. through training.
(A) One-tailed test 4. Collective bargaining.
(B) Two-tailed test 5. Maintaining the employees by creating

favourable conditions of work.
(C) Either one tailed or two tailed test
Codes:
(A) 1, 3 and 5
Answer: (B)
(B) 1, 2 and 3
(C) 3, 4 and 5
20. The steps in data processing are given
below: (D) 2, 3 and 4
Choose the correct sequence of steps in Answer: (A)

data processing from the following
options:

22. F.W Taylor 3. Discussing
1. Viewed man as an adjunct of man. 4. Norming
2. Completely neglected the psychological 5. Warning

aspects.
6. Performing
3. Emphasized only a limited number of
the psychological variables. Codes:
4. Under-estimated the meaning of human (A) 1, 2, 3 and 5

motivation.
(B) 2, 3, 4 and 6
Select the correct answer from the
following: (C) 3, 4, 5 and 6
(A) 1, 2 and 3 (D) 1, 2, 4 and 6
(B) 3, 2 and 4 Answer: (D)
(C) 1, 2, 3 and 4
(D) 1 and 4 25. Match the following:
Answer: (C) List – I
List – II
23. The authoritarian leadership style goes (a) To check the quality of
with work. 1. Speed boss
(A) Theory X (b) To see that work is completed in

time. 2. Inspection
(B) Theory Y
(c) To check absenteeism of
(C) Theory Z workers. 3. Instruction clerk
(D) None of these (d) To issue instruction regarding method

of work 4. Shop discipline www.ne tugc.c om
Answer: (A)
Codes:
(a) (b) (c) (d)

24. Select the four stages of group
development from the following: (A) 3 2 1 4
1. Forming (B) 2 1 4 3
2. Storming (C) 2 1 3 4

(D) 4 3 1 2
Answer: (B) 29. Which promotional tool is most cost

effective when a product is in the decline
stage of its product life cycle?
26. A company plans to create the largest (A) Advertising

possible total sales volume. It should use
(B) Personal selling
(A) Concentrated marketing
(C) Public relations
(B) Differentiated marketing
(D) Sales promotion
(C) Homogeneous marketing
Answer: (D)
(D) Undifferentiated marketing
Answer: (B)
30. Match the items of List-I with those of
List-II.
27. The third stage in the consumer buying List – I List –

decision process is II
(A) Evaluation of alternatives (a) Product support service (i)

Information Technology Act 2000
(B) Information search
(b) Interviewers’ bias (ii)
(C) Purchase decision Information Search
(D) None of the above (c) On-line advertising (iii)

Marketing Research
Answer: (A)
(d) Personal sources (iv)
User’s Manual Indicate the correct
matching.
28. Manufacturers of convenience goods
typically seek ______ distribution. (a) (b) (c) (d)
(A) Exclusive (A) (iv) (iii) (ii) (i)
(B) Intensive (B) (iv) (iii) (i) (ii)
(C) Restrictive (C) (i) (ii) (iii) (iv)
(D) Selective (D) (ii) (iii) (iv) (i)

Answer: (B)

items of List-II.
32. Which one of the following expression
List – I represents a correct matching?
List – II (A) A decrease in the proportional claim

on earnings and assets of a share of
(a) A theory of capital structure in which common stock due to the issuance of
the weighted average cost of capital and additional shares: Dilution.
the total value of the firm remains constant
as financial leverage is (B) Anticipated annual dividend divided
changed. I. Capital Asset by the total book value of the
Pricing Model firm: Dividend Yield.
(b) The value of the geared company will (C) When a shareholder receives lesser
always be greater than an ungeared number of new shares in exchange for a
company with similar business risk but given number of old shares: Stock split.
only by the amount of debt associated tax
savings of the geared (D) The costs associated with issuing
company. securities, such as underwriting, legal,
II. listing and printing fees: Transaction
Traditional Approach Costs.
(c) Capital structure that minimizes the Answer: (A)

firm’s cost of capital and thereby
maximizes the value of the firm.
III. Net Operating 33. When the internal rate of return of a

Income Approach project is more than the hurdle rate, the
Net Present Value would be:
(d) Share price is independent of the
degree of financial (A) Zero
leverage. IV. Modigliani-
Miller Theory and Corporate Taxation (B) Positive
Codes: (C) Negative
(I) (II) (III) (IV) (D) Uncertain
(A) (c) (d) (b) (a) Answer: (B)
(B) (d) (c) (a) (b)
(C) (a) (b) (c) (d) 34. Statement I: The presence of fixed
operating costs in the operating cost
(D) (b) (a) (d) (c) structure of a firm regardless of the

volume denotes the presence of financial 36. The Equal Remuneration Act, 1976 is
leverage. primarily applicable to workers working
on
Statement II: Super leverage is the result
of the multiplicative combination of the (A) Monthly wage basis
degree of operating leverage and financial
leverage. (B) Annual wage basis
Codes: (C) Daily wage basis
(A) Both statements are true. (D) Contractual wage basis
(B) Both statements are false. Answer: (B)
(C) Statement I is true, but Statement II is

false.
37. In comparing Maslow’s and
(D) Statement I is false, but Statement II is Hertzberg’s Theories of Motivation, which
true. motivators of Hertzberg are similar to the
need specified by Maslow?
Answer: (D)
(A) Affiliation needs
(B) Physiological needs

35. Which one of the following
expressions has incorrect matching? (C) Security needs
(A) A method of financing where each (D) Self-actualisation needs

asset would be offset with a financing
instrument of the same approximate Answer: (D)
maturity: Hedging Approach.
(B) A method of financing where all long

term funds are used to finance the current 38. The managerial function of staffing is
assets: Aggressive Approach. most closely related to
(C) The amount of current assets required (A) Controlling

to meet a firm’s long term minimum
needs: Permanent working capital. (B) Leading
(D) Trade credit and other payables that (C) Marketing

arise in the firm’s day to day
operations: Spontaneous Financing. (D) Organising

39. The ‘staffing function’ does not (B) (a), (c), (b), (e) and (d)
include:
(C) (b), (d), (c), (a) and (e)
(A) Performance appraisal
(D) (c), (d), (b), (e) and (a)
(B) Placement
Answer: (B)
(C) Selection
(D) Span of control

Answer: (D) correct method of calculating profitability
ratio in banking sector?
(A) Burden ratio = Man power expenses

40. On-the-job training does not include ratio + other establishment expenditure
ratio – non interest income ratio.
(A) Job rotation
(B) Profitability ratio = Spread ratio –
(B) Planned progression burden ratio
(C) Sensitivity training (C) Spread ratio = Interest earned ratio +

Interest paid ratio
(D) Temporary promotion
(D) Interest earned ratio = Interest
Answer: (C) earned/volume of business
Answer: (C)
41. Generally the following are the

important items appearing on the assets
side of the Balance Sheet of a Commercial 43. Capital adequacy norm is expressed as
Bank. a percentage of
(a) Cash in hand (A) Standard Assets
(b) Bills discounted (B) Risk adjusted Assets
(c) Money at call and short notice (C) Sub-standard Assets
(d) Loans and advances (D) Investments
(e) Investments Answer: (B)
Which of the following sequence is correct

in the order of liquidity?
44. The major sources of funds for IFCI
(A) (a), (b), (d), (c) and (e) Ltd. (during the year 2011-12) are given
below:

(i) Reserves and Surpluses (a) ‘Zero-sum’
game
(ii) Borrowings in Rupees (i) Factor proportion theory
(iii) Share Capital (b) Labour-Capital

relationship
(iv) Borrowings in Foreign Currency (ii) Mercantilism theory
Which of the following sequence is (c) Relative efficiencies of the producing

correct? countries (iii) Theory of
‘Absolute advantage’
(A) (i), (iii), (iv) and (ii)
(d) ‘Positive-sum’
(B) (iii), (i), (ii) and (iv) game
(iv) Theory of Comparative advantage
(C) (ii), (i), (iii) and (iv)
Codes:
(D) (iv), (ii), (i) and (iii)
(a) (b) (c) (d)
Answer: (C)
(A) (iii) (iv) (i) (ii)
(B) (ii) (iii) (iv) (i)

45. The Bonds and Debentures issued by
State Financial Corporations are (C) (ii) (i) (iv) (iii)
guaranteed by
(D) (iv) (i) (ii) (iii)
(A) Reserve Bank of India
Answer: (C)
(B) IDBI
(C) Central Government

47. The following are the stages in
(D) State Government international business entry process.
Arrange them in correct sequence.
Answer: (D)
(i) Direct experience
(ii) In-depth scrutiny

46. Items given are related to international
trade theories. Match the items in List-A (iii) Country identification
with most suitable options in List-B.
(iv) Preliminary screening
List – A
(v) Final selection
List – B
Codes:
(A) (iv), (iii), (i), (ii), (v)

(B) (iii), (iv), (i), (ii), (v) (C) If the absolute PPP does not hold
good, then the relative PPP also will not
(C) (iii), (iv), (ii), (v), (i) hold good.
(D) (iii), (iv), (v), (ii), (i) (D) If the absolute PPP holds good, then
the relative PPP may or may not hold
Answer: (C) good.
Answer: (A)
48. Which of the following intellectual

properties were covered under Uruguay
Round Agreement on TRIPS? 50. A company is planning to enter a
foreign market. Which of the following
(i) Copy rights entry strategies will give it the maximum
control?
(ii) Trade marks
(A) Direct export
(iii) Industrial designs
(B) Direct investment
(iv) Undisclosed information, including
trade secrets (C) Financing
Codes: (D) Licensing www. netu gc.co m
(A) (i) and (ii) only Answer: (B)
(B) (i), (ii) and (iii)
(C) (ii), (iii) and (iv) 51. The opportunity cost approach in
Human Resources Accounting was
(D) (i), (ii), (iii) and (iv) introduced by
Answer: (D) (A) Hckimian and Jones
(B) Rensis Likert
49. Which of the following statements is (C) Eric. G. Flamholtz

true?
(D) William C. Pyle
(A) If the absolute Purchasing Power
Parity (PPP) holds good, then the relative Answer: (A)
PPP also holds good.
(B) If the relative PPP holds good, then the

absolute PPP also holds good. 52. The GDRs and ADRs can be listed on
(A) Luxemburg Stock Exchange (LSE)

(B) New York Stock Exchange (NYSE)
(C) Over the Counter Exchange of India 54. Which of the following is responsible
(OTCEI) for investigating cases referred to it and
deciding whether a proposed merger is in
(D) Any of the Overseas Stock Exchanges the ‘public interest’?
Answer: (D) (A) Director General of Fair Trading

(DGFT).
(B) Secretary of State for Trade and

53. Match the following: Industry.
List – I (C) Competition Commission of India

(CCI).
List – II
(D) Prime Minister Office.
(Name of the credit rating
agency) Answer: (C)
(Ownership)
(a) CRISIL
1. IFCI
List – I
(b) ICRA
List – II
2. ICICI
(a) A popular windows accounting
(c) CARE package providing general ledger,
accounts receivables, invoicing, accounts
3. Duff & Phelps Corpn. payable, inventory and sales analysis
capabilities. 1. Sage Accounting
(d) Duff and Phelps Credit Rating of India Software
Ltd. 4. IDBI
(b) A good, entry level accounting
Codes: package.
2. M.Y.O.B.
abcd
(c) Simplest, yet most powerful software
(A) 1 2 3 4 to handle financial accounting, inventory,
sales and purchase orders, invoicing and
(B) 2 1 4 3 more.
3. Best Books
(C) 1 2 4 3
(d) A complete range of accounting
(D) 2 4 1 3 software providing an integrated solution
at the heart of one’s business.
Answer: (D)

4. Tally
58. Pricing decisions are most complex at
Codes: which stage of the product life cycle?
abcd (A) Decline stage
(A) 4 3 2 1 (B) Introductory stage
(B) 1 2 4 3 (C) Growth stage
(C) 2 4 1 3 (D) Maturity stage
(D) 2 3 4 1 Answer: (D)
Answer: (D)
59. Industrial buyers are likely to be most

responsive to ______ appeal.
56. In order to be useful, market segments
must have each of the following (A) Emotional
characteristics except:
(B) Moral
(A) Accessibility
(C) Rational
(B) Adaptability
(D) Cognitive
(C) Measurability
Answer: (C)
(D) Substantiality
Answer: (A)
60. Indicate the true statement:
(A) Advertisement’s sales effect is easier

57. Mass media has the maximum impact to measure than its communication effect.
at which stage of consumer adoption
process. (B) As a tool of promotion, public
relations can be more cost-effective than
(A) Adoption advertising.
(B) Awareness (C) A successful salesperson is one who

can sell refrigerator to an Eskimo.
(C) Evaluation
(D) All the above are true.
(D) Trial
Answer: (B)
Answer: (B)

61. Who observed in 54 of the cases
studied that high morale related to high
productivity in 11 of the cases high morale 64. The career development cycle
was associated with low productivity and includes:
in 35% of the cases there was no
relationship between morale and (A) Introductory stage → Growth stage →
productivity? Saturation stage → Decline stage.
(A) Michael J. Jucious (B) Primary stage → Secondary stage →

Stage of self-actualisation.
(B) Richard E Walton
(C) Pioneering stage → Growth stage →
(C) Frederick Herzberg Maturity stage → Decline stage.
(D) None of the above (D) Exploratory stage → Establishment

stage → Maintenance stage → Stage of
Answer: (C) Decline.
Answer: (D)
62. Who developed the goal-setting theory

of motivation?
65. It is a mental condition or attitudes of
(A) Frederick Herzberg individuals and groups which determine
their willingness to cooperate.
(B) Edwin Locke
(A) Job satisfaction
(C) Richard Hackman
(B) Motivation
(C) Job Advancement
Answer: (B)
(D) Morale
Answer: (D)
63. Which of the following concepts,
involves setting objectives and comparing
performance against those objectives?
66. Which of the following most
(A) Performance Appraisal appropriately describes the meaning of the
term ‘option forward’?
(B) Merit Rating
(A) Forward contract entered into along
(C) Management by Objectives with buying a call option.
(D) Formulation of objectives and policies (B) Forward contract entered into for
buying or selling at a future date.
Answer: (C)

(C) Forward contract entered into for (B) Quota
buying or selling over a period of time.
(C) Sales tax
(D) Forward contract entered into with
writing a put option. (D) Tariff
67. ‘Dual adaptation strategy’, in the 70. Exchange Rate System where the
context of international product decisions, Central Bank intervenes to smoothen out
means: the exchange rate fluctuations is termed as
(A) Modification of product and packaging (A) Free float

it to meet local requirements.
(B) Clean float
(B) Changing product and price to meet
local requirements. (C) Managed float
(C) Modification of product and the (D) Fixed rate system

marketing communication to suit the
foreign markets. Answer: (C)
Answer: (C) Question # 71

Which of the following refers to a narrative
description of the work to be
accomplished?
68. The main promoter of international
trade liberalisation The statement of work (SOW)
The project specifications
(A) GATT - WTO The milestone schedule
The work breakdown structure (WBS)
(B) NAFTA
As the name indicates, the statement
(C) CEPTA of work (SOW) is a narrative
description of the work to be
(D) CISA accomplished. It includes the
objectives of the project, a brief
Answer: (A) description of the work, the funding
constraint if one exists, and the
specifications and schedule.
Question # 72
69. The most common trade barrier faced Which of the following statements is
by a multinational company is the TRUE for Work breakdown Structure
(WBS)?
(A) Embargo

Project Manager must structure work Technical Skills, Ability, Human Skills
into small elements that are and Design Skill
manageable Ability, Motivation to manage and
Project Manager must structure work Opportunity
into small elements that are Motivation to manage, Opportunity and
independent Conceptual Skill
Project Manager must structure work Ability, Capacity and Supervision
into small elements that are
measurable
All of the given options Question # 77
Which of the following statements
gives the Technical definition of
Project Planning?
Question # 73
Working out of sub-components in
Scope of a project is the ……………
some degree of detail
total of all of a project’s products and
To cover area of government
their requirements or features
legislation & regulation related to “use
Sum
of resources”
Product
“Planned use of any /all resources”-
Sum and product
Succession of five year plans
None of the above
Structured sequence of events leading
Question # 74 to desired set of objectives
Which of the following life cycle
phases includes brainstorming and The term planning implies the working
common sense at planning stage? out of sub-components in some
degree of elaborate detail. Broader-
Conceptualization
brush enunciations of objectives may
Feasibility
qualify as metaphorical roadmaps.
Preliminary planning
Planning literally just means the
Detail planning
creation of a plan; it can be as simple
As the name suggests, the conceptualization as making a list. It has acquired a
phase includes brainstorming and common technical meaning, however, to cover
sense and involves two critical factors:
1. Identify and define the problem, and the area
2. Identify and define potential solutions of government legislation and regulatio
ns related to the use of resources
75.Quality assurance is:
Question # 78
Detection based
Which of the following require input
Inspection based
from a large number of functional units
Prevention based
and usually control vast resources?
People based
From the early 1950s to the late 1960s, quality Individual projects
control evolved into quality assurance, with its Staff projects
emphasis on problem avoidance rather than
problem detection Special projects
Matrix or Aggregate projects
Matrix or Aggregate projects: These require
Question # 76 input from a large number of functional units
The three general preconditions for and usually control vast resources. Each of
achieving lasting success as a project these categories of projects can require
manager are: different responsibilities, job descriptions,
policies, and procedures.

Quality Assurance
Question # 79 Quality Management
Which of the following is the Inspection
responsibility of proposed project Total Quality Management
manager?
This comprises of the following “five level
Project Plan & strategy model”:
Description of Project Organization 1. Inspection
2. Quality Control
Development of organizational Chart 3. Quality Assurance
All of the given options 4. Quality Management
5. Total Quality Management
Question # 80
Which of the following is the discount 84.Fredrick Taylor- Father of Scientific
rate that equates the present values of Management was a _______________
the two sets of flows? Mechanical Engineer
Discounted Cash Flow Chemical Engineer
Pay Back Period Technical Engineer
Discounted Cash Flow Electrical Engineer
Internal Rate of Return
Question # 85
Fitness to cost can be obtained by:
Internal Rate of Return (IRR):
If we have a set of expected cash inflows and Determining the customer’s needs
cash outflows, the internal rate of return is the Building of customer needed products
discount rate that equates the present values Obtaining high quality and low cost
of the two sets of flows.
products
81.Which of the following items involves the Developing quality management
quantitative aspects of planning?
Question # 86
Budget development All of the following are relevant factors
Project administration of competitive bids EXCEPT:
Leadership styles
Conflict management Schedule
Financial Stability
Financing Offer
Question # 82 Ease of minor changes adopted
The main purpose of a
_______________ is to function as a Question # 87
blueprint for the group’s business The emphasis is changed from product
operations. to process at ______________ stage.
Business Plan Inspection
Scope statement Quality control
Feasibility Study Quality management
Work Breakdown Structure Quality assurance
The business plan provides the “blueprint” for
project implementation. Question # 88
Quality is defined by_____________.
Question # 83
___________ is the lowest level of Customer
quality development. Proposal manager
Higher management
Quality management

D) The amount of people who bought the
Mature organizations today readily product
admit that they cannot accurately
Ans: A
define quality. The reason for this is
because quality is defined by the Q.92.If the purchase is for a high-involvement
customer. The Kodak definition of product, consumers are likely to develop a
quality is those products and services high
that are perceived to meet or exceed
the needs and expectations of the degree of ________________ so that they can
customer at a cost that represents be confident that the item they purchase
outstanding value
is just right for them.
.89Marketing communications play a critical
role in informing consumers about A) Brand loyalty
_____________ including where they can be B) Society

purchased and in creating favorable
C) Product knowledge
images and perceptions.
D) References
A) Buying their products
Ans: C
B) Price reductions
Q.93.Many people waited weeks in the line for
C) Products and services tickets to the latest Star Wars movies so they
D) The advantage over competition could be in the movie's first seating. Most
people don't plan their movie ticket
Ans: C
purchases more than a week in advance
would prefer not to see a movie in a really
Q.90.Marketers can create brand equity
______________.
crowded theater. Which situational influence
explains why different people place
A) By selling them in prestigious outlets
such importance on being the first to see a
B) By overpricing the product
movie?
C) Preparing comparative information about A) Its marketing mix

competitive brands
B) Task features
D) By making the products available in all
locations
C) Physical features
Ans: A
D) Social features
Q.91.Product involvement refers to
____________ or personal relevance of an Ans: B
item.
Q.94.Because Carter was tired, he decided to
A) A consumer’s perception of the importance go in the restaurant and order a cool drink a
B) The need of the product big piece of chocolate pie. Which situational
influence most likely caused Carter's
C) The price the product

behavior? traditionally been the main purchasing agent
for the family.
A) Task features
A) wife
B) Social features
B) husband
C) Current conditions
C) teenage children
D) Physical features
D) grandparent
Ans: C
Ans: A
Q.95.What is the least pressing in Maslow's
Hierarchy of Needs?
A) Self actualization MOCK TEST -10
B) safety needs 1. The Marshallian utility analysis is based

on a less valid assumption of
C) physiological needs
D) social needs
Q.96.Consumer purchases are influenced

strongly by cultural, social, personal, and:
A) psychographic characteristics.
B) psychological characteristics.
Answer: (B)
C) cpsychometric characteristics.
D) supply and demand characteristics.
Ans: B
2. An appropriate pricing strategy for a
new product to be introduced in the market
Q.97.A ________________ is a group of will be
people with shared value systems based on
common life experiences and situations.
(B) Skimming/Penetrating pricing
A) culture
(C) Product-line pricing
B) subculture
C) lifestyle composite
(D) Differential pricing
D) social class Answer: (B)
Ans: A
Q.98.Even though buying roles in the family 3. Economic capacity of a plant represents
change constantly, the ___________ has the firm’s capability for

(A) Maximum physical output (D) Goods supplied free of charge
(B) Maximum marginal output Answer: (D)
(D) Output that equates average and 6. The leadership prototype

marginal costs
(A) is useful primarily for selection and
Answer: (D) training of employees
(B) Uses LPC (Least Preferred Co-worker)

as an important component
4. Multi-stage approach to product pricing
in a firm involves considerations for (C) Depicts the image of a model leader
setting the price as follows:
(D) Emphasizes leadership development
i. Selection of firm’s objective
Answer: (C)

7. Which is not a perceptual process stage?
(B) Interpretation
(C) Follow-through
(D) Retrieval
Answer: (A)
(D) i → iii → ii → iv
Answer: (B)
8. Which statement is correct?
(A) Goals act as the set of constraints that

5. Which one of the following practices is an organisation must satisfy.
not sought to be regulated under the
Consumer Protection Act, 1986? www.net ugc.c om (B) Deterministic goals specify the end or
direction towards which the organization
(A) Sales of defective goods applies its efforts, and they can be fairly
determined.
(B) Supply of services having some
deficiency (C) Goals may be categorised as
deterministic and constraint goals.
(C) Misleading advertisements

(D) All of the above. (D) It protects the interest of daily wage
earners.
Answer: (D)
Answer: (B)
9. According to Fiedler’s Contingency

Model of Leadership, which one of the 12. To be effective a points-based rating
following is not situational variable? system requires:
(A) Leader-Member relations (A) Close management control
(B) Task structure (B) Comprehensive, reliable and consistent

information
(C) Position power
(C) Objectivity in assessments
(D) Maturity of followers
Answer: (D)
Answer: (B)
10. Which is not a centralized

communication network system? 13. Too much of reliance on internal
(A) Wheel Network
(A) Reduced job performance
(C) Circle Network
(D) Chain Network
(D) Poor group dynamics
Answer: (C)
Answer: (A)
in the context of the management of
misconduct?
14. The concept of stagnation in the
(A) It reflects on the integrity of HR context of HRM means:
professionals.
(A) Lack of appropriate selection criteria.
(B) It ensures that individuals have a sense
that they have been treated fairly. (B) HR staff having very limited
experience outside the HR functions.
(C) It reflects on the values and attitudes of
top management. (C) Over-reliance on the internal labour
market to fill new positions.

(D) Lack of integration of recruitment and (C) Simulation analysis
selection into the wider human resource
function. (D) Financial break-even analysis
15. Negotiations are an important aspect of 18. ‘Trading on equity’ refers to

they ensure? www. net ugc.co m (A) Optimum capital structure
(A) That conflict is contained within (B) Appropriate capitalisation

manageable boundaries.
(C) Capital gearing
(B) That there is an agreement between all
parties involved. (D) Watered capital
(C) That conflict is always resolved. Answer: (C)
Answer: (A) 19. Match the items of two lists, giving the
correct code:
List – I List –
16. If the going rate of interest is above the II
(A) At a Premium John Lintner
(B) At a Discount b. Dividend Relevance Model ii.

James E. Walter
(C) At Par
c. Dividend Irrelevance Model iii.
(D) None of the above Myron Gordon
Answer: (B) d. Dividend Payout Model iv.

Modigliani & Miller
Codes:
17. In case the sales or project’s
investment deviates from expected ones, it abcd
needs
(A) ii i iii iv
(A) Optimistic scenario analysis
(B) i iv ii iii
(B) Sensitivity analysis
(C) iii ii iv i

(D) iv iii i ii
Answer: (C) 23. Holistic marketing does not include
(A) Internal Marketing
20. The excess payment by the new (B) Integrated Marketing

for the appraised value of the assets and (C) Performance Marketing
(D) Financial Marketing
(A) Capital Reserve
Answer: (D)
(C) Goodwill
(D) Amount paid for the acquisition of the distinctive characteristic of services?
brand
(A) Transparency
Answer: (C)
(B) Intangibility
21. Which of the following is direct
marketing? (C) Inseparability
(A) Face to-face marketing (D) Perishability
(B) Catalogue marketing Answer: (D)
(C) Direct mailing
(D) Test marketing 25. To remain dominant, a market leader

looks for
Answer: (A)
(B) Attempting to protect its current share

can be collected through (C) Increasing its market share
(A) Observational Method (D) all of the above
(B) Survey Method Answer: (D)
(C) Experimental Method
(D) All of the above 26. Consider the names of

Answer: (D) their role/functions given in List – II:

List – I (D) Right hand-side ranging www. netu gc.co m
List – II Answer: (A)
a. Bureau of Indian Standards

Service quality 28. The upper control limit for an X chart,
with n = 9, = 26.7, R = 5.3 and d2 = 2.970,
b. Zeithmal, Parasuraman and Berry is
of Educational service (A) 24.9
c. ISO (B) 26.11
iii. Standardisation and quality control (C) 27.29

of manufactured goods
(D) 28.48
d. National Assessment and Accreditation
Council iv. Quality marking and Answer: (D)
Certification of standards
Indicate the correct matching:

29. The additional cost of shortening an
Codes: activity by one unit of time is
abcd (A) Cost slope
(A) i ii iii iv (B) Crash cost
(B) ii iii iv i (C) Crash time
(C) iv ii iii i (D) Least cost
(D) iii i iv ii Answer: (A)
Answer: (D)
30. Which method is least suited for

forecasting the demand of a new product?
27. In Linear Programming, which one of
the following cases is not a type of (A) Survey of Buyers’ Intentions
sensitivity analysis?
(B) Composite Opinions of Sales Force
(A) Model building
(C) Test Marketing
(B) Objective-function ranging
(D) Time-Series Analysis
(C) Pricing out
Answer: (D)

Answer: (A)
31. In a hypothesis test, α = 0.05 and β =

34. The technique(s) that can be used in
(A) 0.10 data mining is/are:
(B) 0.90 (A) Non-linear Regression Methods
(C) 0.95 (B) Decision tree
(D) 0.15 (C) Neural networks
Answer: (B) (D) All of the above
Answer: (D)
32. When performing a Chi-square

hypothesis test, what happens when
expected frequencies in several cells are 35. A Binomial distribution may be
too small? approximated by a Poisson distribution, if:
(A) Value of χ2 will be overestimated. i. ‘n’ is large and ‘p’ is large.
(B) The null hypothesis will be more likely ii. ‘n’ is small and ‘p’ is large.
to be rejected than it should be.
iii. ‘n’ is small and ‘p’ is small.
(C) The degrees of freedom are greatly
reduced. iv. ‘n’ is large and ‘p’ is small.
(D) (A) and (B), but not (C). Codes:
Answer: (D) (A) i, ii and iii
(B) ii only
33. Under which situation, the method of (C) iii and iv only
‘experimentation, modeling and sensitivity
analysis’ is used to determine the (D) iv only
information requirements of the
management? Answer: (D)
(B) High Risk 36. Double taxation relief is normally

provided by the country in which the
(C) Low Risk parent company has its legal residence. It
is provided in the following modes:
(D) Certainty

i. Credit system without deferral (B) ii, iii and iv
ii. Credit system with deferral (C) i, ii and iv
iii. Deduction of tax paid abroad as (D) i and ii only

expenditure
Answer: (C)
iv. Investment credit
v. Tax subsidy
Identify the correct combination. II:
Codes: List – I List – II
(A) i, ii, iii and iv a. UNCTAD I i. India
(B) i, ii, iv and v b. UNCTAD II ii. Brazil
(C) ii, iii, iv and v c. UNCTAD X iii. Thailand
(D) i, ii, iii and v d. UNCTAD XI iv. Switzerland
Answer: (A) Indicate the correct matching.
Codes:
37. The strategies of a global firm are abcd

affected by the following factors:
(A) iv i iii ii
i. Different countries have different labour
mixes. (B) iii i iv ii
ii. The legal, economic, social and cultural (C) ii i iii iv

environment varies from one country to
another. (D) iv i ii iii
iii. Different countries have different time Answer: (A)

iv. Political relationship between the home

country and the host country. 39. In the context of International
Business, whether an equal distribution of
Indicate the correct combination. income in the host country:
Codes: (A) Has nothing to do with the MNCs

market segmentation strategy.
(A) i, ii and iii

(B) Matters greatly to the MNCs market
42. ‘Kakinada Experiment’ on
(C) Has little impact on the MNCs market achievement motivation was conducted in
(A) Uttar Pradesh
(D) Has a significant impact on the MNCs
market segmentation strategy if the (B) Jammu & Kashmir
economy is at the take-off stage.
(C) Andhra Pradesh
Answer: (A)
(D) Gujarat
Answer: (C)
40. Statement-I: Cost of retained earnings
is included in the cost of equity in the
context of international business.
43. The entrepreneurial process consists of
Statement-II: Interest rate swap and the following steps:
currency swap are used interchangeably in
international business. i. Management of the resulting enterprise.
(A) Statement I is true, but Statement II is ii. Determination of the required resources.
false.
(B) Statement I is false, but Statement II is opportunity.
true.
(C) Both the statements I and II are true.
Indicate the correct sequence.
(D) Both the Statements I and II are false.
Codes:
Answer: (D)
(A) iii iv i ii
(B) iv i iii ii
41. Who said – “An entrepreneur always
searches for change, responds to it and (C) iii iv ii i
exploit it as an opportunity.”?
(D) iv i ii iii
(A) James Burna
Answer: (C)
(B) McClelland

44. Match the items given in List – I and
(D) Robert C. Ronstadt List – II:
Answer: (C) List – I List – II

a. Market Research i. Sales (C) Employees
promotion
(D) Shareholders
business Answer: (D)
c. Ownership iii.
Budgeting
47. A good governance in corporate sector
d. Marketing Plan iv. Exploring depends upon
market opportunity
(A) Strong political will
Codes:
(B) Transparency and accountability
abcd
(C) Trade Union practices
(A) i ii iii iv
(D) Social and political responses
(B) iv iii i ii
Answer: (B)
(C) iv iii ii i
(D) i ii iv iii
48. Corporate leaders in India in private
Answer: (C) sector are tempted by a very high target of
________ and the concerned employees
have to achieve the target for promotion
and stability.
45. TePP stands for
(A) Money making
(A) Technology for Promotion and
Production (B) Business growth
(B) Trade for Profitability and Productivity (C) Product development
(C) Technopreneur Promotion Programme (D) Profit
Answer: (C)

norms and pattern that spring from
46. Indo-American Model of Corporate organizational view of good and bad, right
Governance sets top most priority to and wrong. www.netu gc.co m
(A) Business growth (A) Social
(B) Customers (B) Behavioural

(C) Institutional (C) Indifference curves are convex to the
origin.
(D) Individual
(D) Indifference curves do not intersect
Answer: (B) each other.
Answer: (B)
50. Trade Union strike supporting a

political cause and affecting production
activities is a problem related to 53. Which one of the following statements
is true?
(A) Socio-economic phenomenon
(A) Business decisions cannot be taken
(B) Ethical and technical phenomenon without a sound knowledge of Macro
Economic Theories.
(C) Ethical and economic phenomenon
(B) Knowledge of Economic Theory is
(D) Socio-political phenomenon misleading in making business decisions.
Answer: (C) (C) With the help of Economic Theories, it

is always possible to predict the future
51. The hypothesis that ‘consumption in accurately.
one period would be a function of income
in that period and the returns on savings of (D) Every Economic Theory is based on
the previous period’ is given by realistic facts which are common to all
societies.
(A) Irving Fisher
Answer: (A)
(B) Franco Modigliani
(C) Duesenberry
54. Arrange the following in the proper
(D) Robert Hall order for decision under capital budgeting.
Answer: (B) (i) Estimating the cost and benefits of

proposals.
(ii) Deciding the investment objective.

52. From the following identify one which
is not a property of Indifference curve? (iii) Selecting the best investment
proposal.
(A) Indifference curves are downward
sloping. (iv) Applying the capital budgeting
decision technique.
(B) Indifference curves are concave to the
origin. Codes:
(A) (ii) (iv) (i) (iii)

(B) (ii) (iv) (iii) (i) 56. The form of learning in which people
acquire new behaviours by systematically
(C) (ii) (i) (iv) (iii) observing the rewards and punishments
given to others is known as
(D) (ii) (i) (iii) (iv)
(A) Operant conditioning
Answer: (C)
(B) Positive reinforcement
(C) Modelling
55. Match the following items in List – A
with the most appropriate options from (D) Law of effect
List – B:
Answer: (A)
List-A
List-B
57. Diffusion of routine information takes
a. A lender buys securities to protect him place through
from a falling interest rate 1.
Interest rate collar www.ne tugc. com
(A) Downward Communication
b. A borrower buys securities to protect (B) Upward Communication

himself from rising interest rate 2.
Interest rate cap (C) Horizontal Communication
c. A combination of interest rate cap and (D) External Communication

floor 3.
Interest rate corridor Answer: (A)
d. A combination of two or more interest

rate caps 4. Interest
rate floor 58. An integrated group of activities to
bring about a change is known as
Codes:
(A) Organisation development
abcd
(B) Interventions
(A) 2 4 3 1
(C) OCTAPACE
(B) 4 2 1 3
(D) Collaborative culture
(C) 4 2 3 1
Answer: (A)
(D) 3 2 1 4
Answer: (B)

a. Motivation is a function of fairness in those with whom they compare
social exchanges. 1. themselves.
Expectancy Theory
d. Equity Theory 4. One’s belief
b. People are motivated to behave in ways about having the capacity to perform a
that produce valued outcomes. 2. task.
Alderfer’s ERG Theory
Codes:
c. Determining specific levels of
performance for workers to attain and then abcd
striving to attain them.
3. Equity Theory (A) 1 2 3 4
d. When people are frustrated by their (B) 4 1 2 3

inability to meet needs at the next higher
level in the hierarchy, they regress to the (C) 3 4 1 2
next lower category of needs and intensify
their desire to gratify these needs. (D) 2 3 4 1
4. Goal- Setting Theory
Answer: (B)
Codes:
61. Human resource planning system
abcd includes
(A) 1 2 3 4 (A) Human resource supply forecast
(B) 4 3 2 1 (B) Human resource inventory
(C) 3 1 4 2 (C) Corporate plan
(D) 3 4 1 2 (D) All of the above
60. Match the following: 62. Who among the following propounded
the concept of collective bargaining?
a. Self-efficacy 1. Determining
specific levels of performance for workers (A) Beatrice and Gompers
to attain them.
(B) Beatrice and Emerson
b. Goal setting 2. The belief that
one’s efforts will positively influence (C) Gompers and Emerson
one’s performance.
(D) Gautt and Gompers
c. Expectancy 3. People strive to
maintain ratio of their own outcomes to Answer: (Wrong question)
their own inputs that are equal to that of

a. Job Analysis 1.
Determining worth of a job.
63. What are the benefits of human
resource planning? b. Job Evaluation 2.
Examining how work adds value to the
(A) Achieve economy in hiring new ongoing process.
workers.
c. Job Design 3.
(B) Match personnel activities and future Determining the pertinent facts about the
organization objectives efficiently. job.
(C) Improve the utilization of human d. Work Flow Analysis 4.

resources. Organizing work into the tasks required to
perform a specific job.
Codes:
Answer: (D)
abcd
(A) 1 2 3 4
64. Human Resource Management
includes (B) 4 3 2 1
1. Employee Grievance (C) 3 1 4 2
2. Organizational climate (D) 2 3 1 4
3. Job incentives Answer: (C)
4. Recruitment www.netu gc.co m
5. Selection 66. Which ratio explains that how much

portion of earning is distributed in the
Select the correct answer from the form of dividend?
following:
(A) Dividend – Debt Ratio
(A) 1, 2, 3 and 4
(B) Equity – Debt Ratio
(B) 1, 3, 4 and 5
(C) Pay-out Ratio
(C) 1 and 5
(D) Earning – Yield Ratio
Answer: (C)
Answer: (B)
67. Modern approach to financial

65. Match the following: management is

I. The total fund requirement of the firm. Answer: (A)
II. The asset to be acquired.
III. Payment of dividend to shareholders. 70. This consists of two lists of statements
or terms and the candidate has to match an
(A) I only item in one list with an item in the other:
(B) II only List-I List-

II
(C) II & III only
(Statement)
(D) I, II & III (Terms)
Answer: (D) a. Preventing hostile takeover 1.

Management buyout
b. Leveraged buyout 2.
68. Participating preference shares are Green mail
those which participate in the
c. Accounting for merger 3.
(A) General meeting of the company Pooling of interest
(B) Voting d. Financing for merger 4.

Cash offer
(C) Profits over and above their fixed
dividend Codes:
(D) Management of the company abcd
Answer: (C) (A) 1 2 3 4
(B) 2 1 4 3
69. Which of the following is one of the (C) 2 1 3 4

critical assumptions of Walters’ Model?
(D) 3 4 2 1
(A) All financing is done through retained
earnings; external sources of funds like Answer: (C)
debt or new equity capital are not used.
71. What kind of pricing strategy a firm
(B) The retention ratio, once decided upon, should normally follow for marketing
is constant. Thus, the growth rate, (g = br) electronic goods?
is also constant.
(A) Penetration pricing strategy
(C) The capital markets are perfect and the
investors behave rationally. (B) Skimming pricing strategy
(D) All of the above. (C) Cost plus pricing strategy

(D) All of the above Answer: (D)
Answer: (Wrong question)
74. Two statements are given below:
72. Which fact is true about on-line Statement – I: Product concept of

marketing? marketing holds that consumers would
favour those products that are available
(A) A website which is user-friendly. and highly affordable.
(B) A website which is user-friendly and Statement – II: Production concept of

regularly updated. marketing holds that consumers would not
buy enough of the company’s product
(C) A website which is user-friendly unless the company undertakes a
regularly updated and make product’s substantial promotional effort.
graphical image available.
Choose the correct option from the four
(D) A website which is user-friendly, options given below:
regularly updated, provides product’s
graphical image and product’s price is (A) Statement I is correct and II is wrong.
competitive.
(B) Statement II is correct and I is wrong.
Answer: (D)
(C) Both statements are correct.
(D) Both statements are wrong.

73. Which of the following function
involved under marketing management’s Answer: (D)
function?
1. Collection of market information

2. Marketing coordination
List-I List-II
3. Marketing controlling
a. Differentiation 1. How familiar and
4. All the above intimate consumers are with the brand.
Codes: b. Esteem 2. The degree to

which a brand is seen as different from
(A) 1 & 2 others.
(B) 2 & 3 c. Relevance 3. How well the

brand is regarded and respected.
(C) 3 only
d. Knowledge 4. The
(D) 4 only breadth of a brand’s appeal.

Codes: a. For fraction or proportion of defects
1. R-chart
abcd
b. For number of defects
(A) 1 2 3 4 2. C-chart
(B) 2 3 4 1 c. For number of defects for unit

3. nP-Chart
(C) 3 4 1 2
d. For monitoring process
(D) 4 3 2 1 variability 4. P-Chart
Answer: (B) Codes:
abcd
76. Work measurement refers to (A) 1 2 3 4
(A) The length of time it takes to complete (B) 4 3 2 1

a work task assigned to a specific job.
(C) 2 1 4 3
(B) Improving work methods. www.netug c.co m
(D) 3 4 1 2
(C) Arrangement of machines according to
operations. Answer: (B)
(D) Planning the work and working for the

plans.
79. Statement – I: One of the major causes
Answer: (A) of the industry for larger capacity is the
argument that large facilities facilitate
greater economies of scale. But the major
concern for building big capacity is that
77. Facility planning includes funds will be tied up or scarcity of funds.
(A) Determination of production capacity Statement – II: A viable alternative to

larger capacity production facilities is to
(B) Determination of production facilities develop subcontractor and supplier
location networks.
(C) Determination of the layout (A) Both statements I & II are correct.
(D) All the above (B) Both statements I & II are false.
Answer: (D) (C) Statement I is correct and II is false.
(D) Statement II is correct and I is false.
78. Match the following: Answer: (A)

(A) (iii), (ii), (i) and (iv)
80. In a symmetrical distribution (B) (iii), (i), (ii) and (iv)
(A) Mean, Median and Mode values are (C) (i), (iii), (ii) and (iv)
identical.
(D) (i), (iii), (iv) and (ii)
(B) Mean, Median and Standard Deviation
are equal. Answer: (B)
(C) Mean, Median and Correlation are

equal.
83. Y = a + bX refers to
(A) Y = independent variable, a = slope of
Answer: (A) the line, b = Y intercept and X =
dependent variable
(B) Y = dependent variable, a = slope of

81. From the following, identify the test the line, b = Y intercept and X =
which can be used both as parametric and independent variable
non-parametric?
(C) Y = independent variable, a =
(A) ‘t’ test dependent variable, b = Y intercept and X
= slope of the line
(B) ‘F’ test
(D) Y = dependent variable, a = Y
(C) ‘Chi-square’ test intercept, b = slope of the line and X =
independent variable
(D) ‘Wil-coxon’ test
Answer: (D)
Answer: (C)
84. Select the most appropriate option

82. Arrange the following in ascending from Column B against the items in
order in the testing of hypothesis: Column A:
(i) Determining the level of significance Column A
(ii) Deciding the Statistical Test and Column B

computation
a. Computer used to operate large
(iii) Setting the hypothesis corporate systems and databases
1.Components of information system
(iv) Decision
b. Data flow diagram
Codes:
2. RAID

c. Equipment, procedures and end user (C) BCG Matrix
3. Structured
design (D) IFE Matrix
Codes: Answer: (A)
abc
(A) 3 2 1 87. Which among the following best

describes the process of gaining
(B) 2 3 1 competitive advantage in a firm?
(C) 1 2 3 (A) Strengths → Weaknesses →

Distinctive Competencies → Competitive
(D) 2 1 3 Advantage
Answer: (B) (B) Weaknesses → Strengths →

Distinctive Advantages → Competitive
Advantages
85. According to Michael Porter, a strategy (C) Weaknesses → Strengths →

aims at producing products and services Distinctive Competencies → Competitive
considered unique industry wide and Advantages
directed at consumers who are relatively
price-insensitive is known as (D) Distinctive Competencies →
Weaknesses → Strengths → Competitive
(A) Cost Leadership – Best Value Advantages
(B) Differentiation Answer: (A)
(C) Focus – Low Cost
(D) Focus – Best Value 88. According to Porter, the nature of

competitiveness in a given industry can be
Answer: (B) viewed as a composite of the following
five forces:
1. Rivalry among competing firms.

86. In context of Industry Analysis which
matrix allows strategists to summarise and 2. Potential entry of new competitors.
evaluate economic, social, cultural,
demographic, environmental, political, 3. Potential development of substitute
governmental, legal, technological and products.
competitive information?
4. Bargaining power of suppliers.
(A) EFE Matrix
5. Bargaining power of consumers.
(B) CPM Matrix

Identify the force which is central (most 90. A sound business opportunity is the
powerful) to remaining four: result of appropriate interaction between:
(A) Potential development of substitute (A) Needs of the society

products.
(B) Capabilities of an entrepreneur
(B) Potential entry of new competitors.
(C) Resources available in the
(C) Bargaining power of consumers. environment
(D) Rivalry among competing firms. (D) all of the above
Answer: (D) Answer: (D)
89. Match the following: 91. “An entrepreneur always searches for
change, responds to it and exploits it as an
Organizational Structure opportunity.” Who said it?
Advantage
(A) F.W. Taylor
a. Functional Structure 1.
Clarity of project objectives (B) Peter F. Drucker
b. Divisional Structure 2. (C) J.R. Tulsian

Smooth delegation of authority and
responsibility (D) Max Weber
c. Matrix Structure 3. Answer: (B)

Simple and unexpensive
d. Strategic Business Unit (SBU) 4.

Ease of fixing accountability 92. An industrial unit, according to RBI, is
sick if
Codes:
(A) Incurred cash loss in the previous year.
abcd
(B) Likely to incur loss in the following
(A) 1 2 3 4 year.
(B) 3 4 1 2 (C) Current ratio is less than 1: 1 with

weak debt-equity ratio.
(C) 3 4 2 1
(D) all of the above.
(D) 4 3 1 2
Answer: (D)
Answer: (B)

93. Which is not the object of
Entrepreneurship Development
Programmes? 95. The customer joining the queue and
leaving it afterwards is defined as
(A) To create successful entrepreneur
(A) Jockeying
(B) To remove doubts of entrepreneurs and
to give solutions to the problems (B) Balking
(C) To create awareness about (C) Reneging

Government schemes and programmes
Answer: (C)
Answer: (A)
96. Which among the following is not

94. Match the following: correct with regards to Clause 49 of SEBI
Act?
a. Central Manufacturing Institute
1. Deals with paper (A) It came into effect from 31stDecember
industry 2005.
b. Central Pulp and Paper Research (B) Clause 49 is related to the Listing
Institute 2. Deals with Agreement to the Indian Stock Exchange.
pollution control in Indian Tannerics
(C) It desires 50 percent in dependent
c. Central leather Research Directors.
Institute 3. Deals with
Machine Tools (D) None of the above
d. Electronic Service and Training Answer: (D)

Centre 4. Deals with training,
technical and consultancy services
Codes: 97. Which of the following powers of

Directors cannot be exercised without the
abcd consent of shareholders in General
Meeting?
(A) 1 2 3 4
(A) Power to make calls on shareholders
(B) 3 1 2 4
(B) Power to make loans
(C) 2 3 4 1
(C) Power to buy back its shares
(D) 4 3 1 2
Answer: (B)

(D) Power to borrow monies exceeding the a. Ozone Depletion 1. Lead
aggregate of the paid-up capital of the poisoning
company and its free reserves.
b. Environmental Health 2.
Answer: (D) Deforestation
c. Logging 3. Food
controversies
98. The professional having high ranking
and trained to uphold the highest standard d. Genetic Engineering 4. CFC
and effective operations, compliance and
administration as corporate governance, is Codes:
known as www. net ugc.co m
abcd
(A) Directors of Company
(A) 4 2 1 3
(B) Chairman of Company
(B) 4 1 2 3
(C) Company Secretary
(C) 4 3 2 1
(D) Shareholders
(D) 4 3 1 2
Answer: (C)
Answer: (B)
99. Governance is the system of values,

policies and institutions by which a society MOCK -11
manages its economic, political and social
affairs through interactions within and 1. Match the items of List – I with those of
among the state, civil society and private List – II and give the correct code from the
sector is defined by following:
(A) World Bank List – I

List –
(B) UNDP II
(C) European Commission a. Sales Maximisation Model

i. John Williamson
b. Managerial Discretion
Answer: (B) Model ii. R.M. Cyert and J.G.
March
c. Integrative Model
100. Match the following with regards to iii. William J.
environmental ethical issues: Baumol

d. Behavioural Model (C) ii iv i iii
iv. Oliver
Williamson (D) iii ii iv i
Codes: Answer: (C)
abcd
(A) ii iii iv i 3. Cost-plus pricing is not suitable for
(B) iii iv i ii (A) Monopoly Pricing
(C) i ii iii iv (B) Product Tailoring
(D) iv i ii iii (C) Refusal Pricing
Answer: (B) (D) Monopsony Pricing
Answer: (A) www.net ugc.c om

lists and give the correct code for the
following: 4. Indicate the correct code matching the
items of List – I with those in List – II as
List – I follows:
List – II List – I List –

II
a. Scale of Preferences
i. a. Resorting to New Technology i.
Indifference Curves Cost reduction through output expansion
b. Inadequate Explanation of Giffen Goods b. Excess Capacity of the Plant ii.

ii. Ordinal Utility Constant cost despite output expansion
c. Curves always slope negatively c. Employees’ Training Centres iii.

iii. Demand Curves Internal Economies
d. Inseparation of Income and Substitution d. Reserve Capacity of the Plant iv.

affects iv. Marshallian Utility Analysis External Economies
Codes: Codes:
abcd abcd
(A) ii i iii iv (A) i iii ii iv
(B) i iii iv ii (B) iii i iv ii

(C) iv ii i iii d. Aggregate expenditure being less than
national income at full employment level
(D) ii iv iii i iv. Inflationary gap
Answer: (B) Codes:
abcd
5. In a mixed economy, the central (A) ii iv i iii

problems are solved through which of
following? (B) iv i iii ii
(A) Price mechanism (C) iii ii iv i
(B) Regulated market mechanism (D) i iii ii iv
(C) Market mechanism and economic Answer: (B)

planning
(D) Economic planning and control

7. The study of gestures and body postures
Answer: (C) for their impact on communication is
known as:
(A) Kinesics
6. Indicate the correct code matching the
items in List – I with those in List – II as (B) Proximics
follows:
(C) Semantics
List – I
(D) Informal channels
List
– II Answer: (A)
a. Excess of aggregate investment over

aggregate savings, at full employment
level i. Stability of National Income 8. Which of the following deals with
“what, why, when and how” tasks to be
b. Equality of aggregate income and performed?
savings
(A) Job Analysis
ii. Recessionary gap
(B) Job Description
c. Comparatively greater decrease in
income following a decrease in investment (C) Job Specification
iii. Multiplier effect
(D) Job Enrichment
Answer: (B)

12. Match the following and indicate the
correct code:
9. According to Henry Mintberg, managers
perform three roles. Indicate the one role List – I
which is not among them.
(A) Decisional List – II
(B) Informational a. A form of learning through association

that involves the manipulation of stimuli to
(C) Interpersonal influence behaviour i. Stimulus
(D) Supervisory b. The process of controlling behaviour by

manipulating its consequences
Answer: (D) ii.
Reinforcement
c. Something that incites action

10. The Ringlemann effect describes
iii.
(A) The tendency of groups to make risky Operant conditioning
decisions
d. The administration of a consequence as
(B) Social loafing a result of
behaviour
(C) Social facilitation iv. Classical conditioning
(D) The satisfaction of members’ social Codes:

needs
abcd
Answer: (B)
(A) i ii iii iv
11. The term “workforce diversity” refers
to differences in race, age, gender, (B) iv iii ii i
ethnicity, and _______ among people at
work. (C) iii iv i ii
(A) Social status (D) iv iii i ii
(B) Personal wealth Answer: (D)
(C) Able-bodiedness
(D) Political preference 13. Which of the following techniques

permits the complainant to remain
Answer: (C) anonymous?
(A) The exit interview

(B) The gripe-box system (C) First Aid
(C) The opinion survey (D) Drinking water
Answer: (B)
17. A person who has ultimate control

over the affairs of the factory under the
14. Which of the following Acts has a Factories Act, 1948 is called
direct relevance for grievance handling
practices?www.n etug c.co m (A) Occupier
(A) The Industrial Employment (Standing (B) Manager

Order) Act, 1946
(C) Chairman
(B) The Industrial Disputes Act, 1947
(D) Managing Director
(C) The Factories Act, 1948
Answer: (A)
Answer: (D)
18. In which of the following methods
grievances are ascertained at the time of
employees quitting the organisation?
15. That the authority rests solely with the
management with no right to anyone to (A) The exit interview method
challenge is the basis of the
(B) The gripe-box system
(A) Pluralist Approach
(C) The open-door policy
(B) Systems Approach
(D) Opinion surveys
(C) Unitary Approach
Answer: (A)
(D) Social Action Approach
Answer: (C)
19. Redressal of employees’ grievances
covers
16. Which of the following is not a welfare (A) Positive attitude towards employees’
provision under the Factories Act, 1948? grievances and readiness to help
(A) Canteen (B) Expediting machinery for resolving

employees’ grievances
(B) Crèches

(C) Equitable salary system for all (D) Growth rate of fixed assets over a
period of time
(D) Both (A) and (B)
Answer: (B)
Answer: (D)
23. Match the items given in List – I and

20. Which of the following are most List – II and indicate the correct code:
closely interconnected?
List – I
(A) Leadership and organization structure
(B) Leadership and motivation List – II
(C) Leadership and planning a. The technique used in examining the

effect of change in one variable at a time
(D) Leadership and performance appraisal i. Hillier Model
Answer: (B) b. The process of developing the frequency

distribution of Net Present Value
21. _______ is defined as disputes ii. Sensitivity Analysis
between parties submitted and decided by
a neutral third party. c. The technique used in examining the
chances of Net Present Value being greater
(A) Collective Bargaining than zero iii. Decision tree
(B) Affirmation Action d. The technique used when investment at

a future date is to be decided based on the
(C) Arbitration probable outcome of previous investment
(D) Negotiation iv. Simulation
Answer: (C) Codes:
abcd
22. The appropriate method to derive the (A) i ii iv iii

growth rate according to Dividend-
Growth Model for equity valuation is (B) ii iv i iii
(A) Growth rate of sales over a period of (C) iii iv i ii

time
(D) iv i ii iii
(B) Plough-back ratio multiplied with
return-on-equity Answer: (B)
(C) Plough-back ratio multiplied with net

profit margin

24. Match the correct option for each ofthe (C) Price per share increases as the
following approaches of Capital structure dividend pay-out ratio decreases.
theories:
a. The Net Income Approach
i. The market value of the Answer: (C)
firm is not affected by changes in the
capital structure
b. The Net Operating Income Approach 26. Which one of the following is not the
ii. Declining weighted-average cost of major objective of International Monetary
capital Fund?
c. The Modigliani & Miller Proposition – I (A) Promoting co-operation among

iii. The firms prefer to rely on internal countries on international monetary issues.
accruals followed by debt finance and
external finance (B) Giving loans to countries for the
purpose of economic development.
d. The Pecking Order Theory
iv. The value of the (C) Promoting stability in the exchange
firm depends on the earnings and risk of rates.
its assets rather than the way the assets
have been financed (D) Promoting free mobility of capital
across countries.
Codes:
Answer: (B)
abcd
(A) i iii ii iv
27. Match the correct combination for
(B) iv ii iii i Assertion and Reason as argued by
Shapiro and Titman:
(C) ii i iv iii
Assertion (A): Management decisions to
(D) iii iv i ii insure or hedge asset appear at best neutral
mutation.
Answer: (C)
Reason (R): The price of systematic risk is
identical for all the participants in the
financial market.
25. Under the Walter Model, if the rate of
return is greater than the cost of capital: (A) Assertion (A) is correct, but Reason
(R) is incorrect.
(A) Price per share does not vary with the
increase or decrease in dividend pay-out (B) Assertion (A) is incorrect, but Reason
ratio. (R) is correct.
(B) Price per share increases as the (C) Both the Assertion (A) and the Reason
dividend pay-out ratio increases. (R) are incorrect.

(D) Both the Assertion (A) and the Reason 30. Match the following and indicate the
(R) are correct. correct code:
Answer: (D) a. Mergers resulting into economies

achieved primarily by eliminating the
duplicate facilities i. Conglomerate
Merger
28. Conservative policy of working capital
refers to b. Mergers resulting into expansion of
company’s business towards ultimate
i. Situation with high investment in current consumer or source of raw material
assets
ii.
ii. Situation which stimulates sales Horizontal Merger
iii. Situation with frequent production c. Mergers in unrelated line of business

stoppages
iii. Vertical Merger
Codes:
Codes:
(A) iii is correct.
abc
(B) ii is correct.
(A) i ii iii
(C) i is correct.
(B) ii iii i
(D) i and ii are correct.
(C) iii i ii
Answer: (D)
(D) iii ii i
Answer: (B)
29. DUPONT analysis refers to
(A) Earning Per Share = (Net Profit /

Number of Equity Shares) 31. Consider the following statements:
(B) Return on Assets = (Net Profit Margin) 1. Usually people from the same culture,
/ (Total Assets Turnover Ratio) social class and occupation have the same
life style.
(C) Total Assets Turnover Ratio = (Sales
Average) / (Total Assets) 2. The consumer buying decision will
involve the same stages regardless of
(D) None of the above whether the goods involved are low or
high involvement.
Answer: (B)
3. “Salesmen are born, not made.”

4. The ultimate goal of a customer- iv. AIDA Model is relevant to advertising
oriented organization is to maximize its as well as physical distribution.
customer’s satisfaction.
Indicate the correct answer.
Indicate the correct answer through the
codes. Codes:
Codes: (A) All the above statements are false.
(A) All the statements are true. (B) Only iii is true.
(B) Statements 1 and 2 are false, others are (C) i, iii and iv are true.
true.
(D) Only i is true.
(C) Statement 3 is true, others are false.
Answer: (B)
(D) All are false.
Answer: (D)
34. A marketer developing a brand name
that is easy to pronounce would conduct:
32. Cognitive dissonance is associated (A) An association test

with which stage of the consumer buying
decision process? (B) A memory test
(A) Need recognition (C) A preference test
(B) Information search (D) A recall test
(C) Evaluation of alternative Answer: (D)
Answer: (D) 35. Before performing the business

analysis for developing a new product, a
company should beengaged in
33. Consider the following statements: (A) Idea screening
i. Brand equity is a function of brand (B) Product development

awareness and brand preference.
(C) Marketing strategy development
ii. Product lines tend to shorten over time.
(D) Product positioning
iii. The Standards of Weights and
Measures (Packaged Commodities) Rules, Answer: (C)
1977 provide for the labelling rules
relating to packaged commodities.

36. Relationship marketing aims at (A) Direct-Response Advertising
building mutually satisfying long term
relations with (B) Personal Selling
(A) Customers (C) Telemarketing
(B) Employees (D) All of the above
(C) Marketing partners Answer: (D)
Answer: (D) 40. In inventory control, which one of the

following factors does not affect the ROL
(Re-Order-Level)?
37. In the social-cultural arena, marketers (A) Average Daily Usage

may not understand
(B) Lead Time
(A) People’s views
(C) Safety Stock
(B) Organisation’s views
(D) Holding Costs
(C) Society’s views
Answer: (D)
(D) Government’s views
Answer: (D)
41. The number of allocated cells in the
optimal solution of a transportation
problem having m rows and n columns is:
38. A manufacturer of industrial goods
would use ______ sales force structure. (A) m + n – 1
(A) Territorial (B) m + n – 1 or less
(B) Matrix (C) m + n + 1
(C) Product (D) None of the above
(D) Market Answer: (B)
Answer: (D)
42. In a railway yard, goods trains arrive at

a rate of 30 trains per day. Assume that the
39. Which of the following is/are a type(s) inter-arrival time follows an exponential
of direct marketing? distribution and the service distribution is
also an exponential with an average of 36

minutes. The probability that the size of 45. Statement – I: X and R charts use the
the queue exceeds 10 is www.n etu gc.co m sample standard deviation to measure
process variability.
(A) 0.944
Statement – II: The lower control limit on
(B) 0.750 an R chart is always R – (1 – 3d3/d2).
(C) 0.250 Codes:
(D) 0.056 (A) Both Statements I and II are correct.
Answer: (D) (B) Statement I is correct, but II is wrong.
(C) Statement I is wrong, but II is correct.
43. If in the optimal solution of a linear (D) Both Statements I and II arewrong.
programming problem, a non-basic
variable has zero value in the Cj – Zj row, Answer: (D)
the problem
(A) Has no feasible solution

Answer: (c)
(B) Has multiple optimal solutions
(C) is unbounded
47. Read the following statements and
(D) (A) and (B), but not (C) indicate the correct code from given
below:
Answer: (B)
Statement I: A subjective probability may
be nothing more than an educated guess.
44. The best model to compute the Statement II: One reason that decision-
probability that a machine functioning well makers at high levels often use subjective
in one period will continue to function or probabilities is that they are concerned
will break down in the next period is with unique situations.
(A) Delphi Model Codes:
(B) Decision-tree Model (A) Statement I is correct, but Statement II

is wrong.
(C) Multiplicative Model
(B) Statement I is wrong, but Statement II
(D) Markov-Process Model is correct.
Answer: (D) (C) Both Statements I and II are correct.
(D) Both Statements I and II are wrong.

Answer: (C) (D) i, ii, iii and iv
Answer: (D)
48. Which of the following is a step in

performing analysis of variance?
50. Which of the following are the
i. Determine an estimate of population components of data warehouses?
variance from within samples.
i. Metadata
ii. Determine an estimate of population
variance from among the sample means. ii. Integration Programs
iii. Determine the difference between iii. Summarised data

expected and observed frequency for each
class. iv. Archives
Codes: Codes:
(A) i and ii only. (A) i, ii and iii only
(B) i and iii only. (B) i, iii and iv only
(C) ii and iii only. (C) ii, iii and iv only
(D) i, ii and iii (D) i, ii, iii and iv
49. From the following, identify the 51. Arrange the following stages involved
decision-support systems: in DBMS in proper sequence:
i. Status inquiry system i. Creating
ii. Data analysis system ii. Defining
iii. Accounting system iii. Data structuring
iv. Information system iv. Updating
Codes: v. Interrogating
(A) i, ii and iii Codes:
(B) ii, iii and iv (A) i, iii, ii, iv and v
(C) only iii (B) ii, i, iii, v and iv

(C) iii, ii, v, iv and i (A) Corporate strategy
(D) ii, iii, i, iv and v (B) Business strategy
Answer: (C) (C) Functional strategy
(D) Behavioural strategy
52. For years Converse had a major share Answer: (B)

in the athletic shoe market. Then, in the
1980’s, Nike and Reebok re-invented the
athletic shoe industry, and Converse
changed nothing. Now Converse is a 55. The word “Tactic” is the most likely to
minor brand in a growth industry. be associated with
According to the BCG matrix, Converse is
an exampleof (A) Corporate strategy
(A) Cash Cow (B) Business strategy
(B) Dog (C) Operational strategy
(C) Question mark (D) Behavioural strategy
(D) Star Answer: (C)
Answer: (C)
56. A marketing effectiveness review is

part of _______ control.
53. The managerial process of developing
and maintaining a viable fit between an (A) Annual Plan
organization’s objectives, skills, and
resources, and its market opportunities is (B) Profitability
called
(C) Proficiency
(A) Establishing strategic business units
(D) Strategic
(B) Market-oriented strategic planning
Answer: (D)
(C) Market research
(D) Portfolio analysis

57. When a cigarette manufacturing
Answer: (B) company drastically cuts price of a popular
brand of its cigarettes, to increase its share
in the competitive market, it is
implementing a ______strategy.
54. Low cost, product differentiation, and
focused market are the examples of (A) Integrative growth

(B) Market development (A) Venture capital is outside equity that
comes from professionally managed pools
(C) Market penetration of investor money.
(D) Product development (B) Term Loan from bank is needed to pay
dividends toshareholders on time.
Answer: (C)
(C) Permanent working capital is the
amount a firm needs to produce goods and
services at the lowest point of demand.
58. An entrepreneur who is neither willing
to introduce new changes nor to adopt new (D) Temporary working capital is the
methods is known as: amount which a firm may need to meet
seasonal demand.
(A) Adoptive Entrepreneur
Answer: (B)
(B) Fabian Entrepreneur
(C) Innovative Entrepreneur

61. Small Industries Development
(D) Drone Entrepreneur Organisation (SIDO) has been set up to
Answer: (D) (A) Promote, aid and foster the growth of

small-scale industries in the country.
(B) Formulate, coordinate and monitor the

59. UNIDO preparatory meeting on the policies and programmes for promotion
“Role of Women in Industrialisation in and development of small scale industries.
Developing Countries” held in February
1978. Identified constraints, which hinder (C) Provide consultancy and training to
women from participating in industrial small entrepreneurs – both existing and
activities. prospective.
The meeting was held at (D) Provide integrated administrative

framework at the district level for
(A) Vienna promotion of small-scale industries in rural
areas.
(B) New Delhi
Answer: (B)
(C) Geneva
(D) Mexico City

62. Match the items in the two lists:
Answer: (A)
List –
I
List – II
60. Which of the following statements is
false?

(Part of Social Responsibility) 64. The Companies Bill, 2012 has been
(Features) passed by Parliament in August, 2013.
What is not true about this Bill?
a. Responsibility towards owners
i. Stock 1. It does not provide for corporate social
responsibility.
b. Responsibility towards employees’
ii. Quality product 2. It provides for measures to curb
corporate frauds.
c. Responsibility towards depositors’
iii. Safety of their investment 3. It does not include the concept of
corporate fraud.
d. Responsibility towards customers
iv. Job security 4. It emphasises on self-reputation and
stringent penalties on professionals.
v. Interest
Codes:
Codes:
(A) All of the above are true.
abcd
(B) While items 1 and 2 are true, the rest
(A) i iii ii v are not.
(B) iii iv v ii (C) While items 2 and 4 are true, the rest
are not.
(C) i iii v ii
(D) All of the above are false.
(D) iii iv ii i
Answer: (C)
Answer: (B)
65. A high ranking organizational official

63. First industrial estate in India was (e.g. general counsellor or vice president)
established by SSIB in 1955 at who is expected to provide strategies for
ensuring ethical conduct throughout the
(A) Okhla in Delhi organization is known as
(B) Ghaziabad in Uttar Pradesh (A) Ethics Manager
(C) Rajkot in Gujarat (B) Ethics Officer
(D) Sannat Nagar in Jammu &Kashmir (C) Ethics Controller
Answer: (C) (D) Ethics Counsellor
Answer: (B)

66. Indicate the correct code for the (A) Reverse effect
following statements about Assertion (A)
And Reason (R): (B) Reverse Robinhood effect
Assertion (A): All ethical theories are not (C) Boomerang

equally applicable every time in all types
of ethical dilemma resolution. (D) Roosevelt effect
Reason (R): The ethical resolution should Answer: (B)

be based as far as possible on a cognitive
ethical principle with justification.
Codes: 69. When the values and priorities of the

parent organization guides the strategic
(A) (A) is correct, (R) is incorrect. decision making of all its international
operations, it is known as
(B) (R) is correct, (A) is incorrect.
(A) Polycentric Orientation
(C) Both the statements (A) and (R) are
correct. (B) Regiocentric Orientation
(D) Both the statements (A) and (R) are (C) Ethnocentric Orientation
incorrect.
(D) Geocentric Orientation
Answer: (C)
Answer: (C)
67. According to which committee should

an organization submit regular social 70. Indicate the correct code for the
reports? following two statements of Assertion and
Reason:
(A) Sachchar Committee
Assertion (A): GDP increases a currency’s
(B) Kumarmangalam Birla Report value.
(C) Both of above Reason (R): Since there is likely to be

greater demand for country’s currency.
(D) None of above
Codes:
Answer: (A)
(A) (A) and (R) both are correct, but (R) is
not the appropriate explanation of (A).
68. The method of collecting money for (B) (A) and (R) both are correct and (R) is
Corporate Social Responsibility (CSR) by the right explanation of (A).
raising prices or following many other
unethical ways is often described as: (C) (A) is correct, but (R) is not correct.

(D) Both (A) and (R) are not correct. (A) iii i ii iv v
Answer: (A) (B) v iv iii ii i
(C) iv ii iii v i
71. The salient features of India’s Foreign (D) i ii iii iv v

Trade Policy are:
Answer: (A)
i. Reducing the interest burden and
extension of the interest subvention
scheme.
73. Which of the following schemes is not
ii. Rationalizing defence-related imports. a part of India’s Foreign Trade Policy
2009-14?
iii. Focus on labour-intensive sectors.
(A) DFIA (Duty-Free Import
iv. Extension of zero-duty EPCG scheme. Authorization)
Codes: (B) TFITES (Tax-Free IT Export Scheme)
(A) All (i), (ii), (iii) and (iv) (C) VKGUY (Vishesh Krishi and Gram
Udyog Yojana)
(B) (i), (ii) and (iii) only
(D) FMS (Focus-Market Scheme)
(C) (i), (iii) and (iv) only
Answer: (B)
(D) (ii), (iii) and (iv) only
Answer: (C)
74. Indicate correct code for the following
statements of Assertion (A) and Reasoning
(R):
72. Arrange the following steps of Dispute
Settlement Mechanism under the WTO in Assertion (A): The Global Managers must
the systematic order: develop systems and policies that address
floor price, ceiling price and optimum
i. Panel Proceedings price.
ii. Appellate Body Reasoning (R): The Global Managers must

be in line with global opportunities and
iii. Consultations constraints.
iv. Compliance Panel Codes:
v. Arbitration Panel (A) (A) is correct, but (R) is not the right
explanation of (A).
Codes:

(B) (A) and (R) both are correct, but (R) is B) personality
C) emotion
(C) (A) and (R) both are correct, and (R) is
D) perception
the right explanation of (A).
Ans: A
(D) (A) and (R) both are incorrect.
Q.77.Which of the following reflects the
Answer: (C) relatively stable behavioral tendencies that
individuals display across a variety of

situations?
75. Match the following in the context of
A) motivation
International Market Entry and indicate the
correct code: B) personality
List – I List – II C) emotion
a. Assembly i. Exports www.netugc.co m

D) perception
b. Acquisition ii. Indirect Ans: A

Exports
Q.78.A major reason for the changing
traditional purchasing roles for families is that:
c. Export House iii.
Contractual Entry A) the economic conditions are forcing more
teens to work.
d. Commission Agent iv. Direct
Investment B) more women than ever hold jobs outside
the home.
Codes:
C) children are spending more time on the
Web.
abcd
D) men and women now shop together or
(A) iii iv i ii “shop until you drop” for entertainment
(B) iv iii ii i purposes.
(C) i ii iii iv Ans: B
(D) iv ii iii i Q.79.The stages through which families might

pass as they mature over time is a
Answer: (B) A) description of what is called the:
Q.76.The energizing force that activates

B) adoption process.
behavior and provides purpose and direction
to that
C) lifestyle cycle.
behavior is known as _____.
D) Values and Lifestyle (VALS) topology.
A) motivation
Ans: D

Q.80.______________ is(are) a person’s B) need
unique psychological characteristics that lead
to C) drive
relatively consistent and lasting responses to D) cue

his or her own environment.
Ans: D
A) Psychographics
Q.69.According to Maslow’s Hierarchy of
B) Personality Needs, the lowest order of needs are called:
C) Demographics A) self-actualization needs.
D) Lifestyle B) social needs.
Ans: B C) safety needs.
Q.81.The basic premise of the D) physiological needs.

_____________ is that people’s possessions
contribute to and Ans: A
reflect their identities; that is, “we are what we Q.70.According to Maslow’s Hierarchy of
have.”
Needs, the highest order of needs are called:
A) lifestyle concept
A) self-actualization needs.
B) self-concept
B) social needs.
C) personality concept C) safety needs.
D) cognitive concept
D) physiological needs.
Ans: B Ans: A
Q.82.A _____________ is a need that is Q.71._______________ describes changes in

sufficiently pressing to direct the person to an individual’s behavior arising from
seek
experience.
satisfaction of the need.
A) modeling
A) motive
B) motivation
B) want
C) perception
C) demand
D) learning
D) requirement
Ans: D
Ans: A
Q.72.Which construct represents an
Q.83.A good synonym for motive is a(n)
unobservable inner force that stimulates and
_____________.
compels a behavioral response and provides
A) omen specific direction to that response?

A) motive B) physiological
B) personality C) safety
C) emotion D) belongingness
D) perception Ans: A
Ans: A Q.76.In Maslow's hierarchy of needs, food,

water, sleep, and to an extent, sex, are
Q.73.Kelly is hungry, and this inner force is
making him search for the type of food he considered _____ motives.
wants
A) safety
to eat. He decides that an Arby's roast beef
sandwich will satisfy his hunger. This B) self-actualization
inner force that is compelling him to search for C) physiological

food is known as a(n) _____.
D) belongingness
A) motive
Ans: C
B) personality trait
Q.77.Smoke detectors, preventive medicines,
C) emotion insurance, retirement investments, seat belts,
D) perception burglar alarms, and sunscreen are all

examples of products to satisfy consumers'
Ans: A
_____ needs.
Q.74.Maslow's hierarchy of needs is based on
which premise? A) safety
A) All humans acquire a similar set of motives B) self-actualization

through genetic endowment and social
C) physiological
interaction.
D) belongingness
B) Some motives are more basic or critical
than others. Ans: A
C) The more basic motives must be satisfied Q.78.Which need in Maslow's hierarchy
to a minimum level before other reflects a desire for love, friendship, affiliation,
motives are activated.

and group acceptance?
D) all of the above A) safety
Ans: D B) self-actualization
Q.75.Maslow's hierarchy of needs includes all

C) physiological
EXCEPT which of the following?
D) belongingness
A) cognition

Ans: D Ans: A
Q.79.Which of Maslow's needs reflects Q.83.____________ is individuals and

individuals' desires for status, superiority, households who buy goods and services for
selfrespect, and prestige?
personal consumption.
A) safety
A) The target market
B) self-actualization
B) A market segment
C) physiological
C) The consumer market
D) esteem
D) The ethnographic market
Ans: D
Ans: C
Q.80.Which of Maslow's needs involves the
desire for self-fulfillment, to become all that Q.84.___________ develop on the basis of
one is wealth, skills and power.
capable of becoming? A) Economical classes
A) safety B) Purchasing communities
B) self-actualization C) Competitors
C) physiological D) Social classes
D) belongingness Ans: D
Ans: B Q.85.In large nations, the population is bound

to lose a lot of its homogeneity, and thus
Q.81.Primary reference groups include
________________ _________________ arise.
A) college students A) Multilingual needs
B) office colleague B) Cultures
C) family and close friends C) Subcultures
D) sports groups D) Product adaptation requirements
Ans: C Ans: C
Q.82._________________ refers to the buying Q.86.________are based on such things as

behavior of final consumers. geographic areas, religions, nationalities,
ethnic
A) Consumer buyer behavior
groups, and age.
B) Target market buying
A) Multilingual needs
C) Market segment business
B) Cultures
D) Business buying behavior

C) Subcultures A) Groups that an individual looks to when
forming attitudes and opinions
B) Groups of people who have been referred
Ans: C to by someone they know
Q.87._____________ has become C) Groups of office colleagues

increasingly important for developing a
marketing D) Chat groups on the internet
strategy in recent years. Ans: A
A) Change in consumers’ attitudes Q.91.___________ are the groups that

individuals look to when forming attitudes and
B) Inflation of the dollar
opinions.
C) The concept and the brand
A) Reference groups
D) Age groups, such as the teen market, baby
boomers, and the mature market B) Teenage groups
Ans: D C) Religious groups
Q.88.Which of the following is the most D) Adult groups

valuable piece of information for determining
the Ans: A
social class of your best friend's parents? Q.92.__________ are factors that have been
shown to affect consumer behavior.
A) The number of years schooling that they
had A) Brand name, quality, newness, and
complexity
B) Their ethnic backgrounds
B) Advertising, marketing, product, and price
C) Their combined annual income
C) Outlets, strategies, concept, and brand
D) Their occupations name
Ans: D D) Quality, advertising, product positioning,

and strategy
Q.89.__________ is the single factor that best
indicates social class. Ans: A
A) Time Q.93.__________ is the single factor that best

indicates social class.
B) Money
A) Time
C) Occupation
B) Money
D) Fashion
C) Occupation
Ans: C
D) Fashion
Q.90.____________ is the definition of
reference groups. Ans: C

Q.94._______________ are based on such C) Reference Group
things as geographic areas, religions,
D) Personality
nationalities, ethnic groups, and age.
Ans. D
Q.98.________________ is one of the most
B) Cultures basic influences on an individual’s needs,
wants,
C) Subcultures
and behavior.
A) Brand
Ans: C
B) Culture
Q.95.In large nations, the population is bound
to lose a lot of its homogeneity, and thus C) Product
_________________ arise. D) Price
A) Multilingual needs Ans: B
B) Cultures Q.99.In large nations, the population is bound

to lose a lot of its homogeneity, and thus
C) Subcultures
_________________ arise.
D) Product adaptation requirements Ans: C
Q.96._____________ (is) are transmitted
through three basic organizations: the family, B) Cultures
religious organizations, and educational C) Subcultures

institutions; and in today’s society,
educational institutions are playing an
increasingly greater role in this regard. Ans: C
A) Consumer feedback Q.100. Marketing managers should adapt the

marketing mix to ___________________ and
B) Marketing information systems
constantly monitor value changes and
C) Market share estimates differences in both domestic and global
D) Cultural values markets.
Ans: D A) Sales strategies
Q.97.Which of the following is NOT part of B) Marketing concepts

group influence?
C) Cultural values
A) Social Class
D) Brand images
B) Social Group
Ans: C

MOCK -12 (D) Slope would be + 0.6
1. The elasticity of demand is greater than Answer: (D)

unity, when
(A) Percentage change in demand is equal

to the percentage change in price. 4. Match the following:
(B) Percentage change in demand is more List – I

than the percentage change in price.
List – II
(C) Percentage change in demand is less
than the percentage change in price. (a) The producers will offer more of a
product at a higher price. (i)
(D) There is change in price. Market in equilibrium
Answer: (B) (b) The quantum that producers want to

sell is equal to the quantum that consumers
want to buy.
2. GDP includes which of the following (ii) Law of supply

measures?
(c) The sensitivity of consumers to price
(A) The size of a population that must changes. (iii) Co-
share a given output within one year. efficient of price elasticity of demand.
(B) The negative externalities of the (d) Percentage change in quantity

production process of a nation within one demanded to percentage change in price.
year. (iv) Price elasticity of demand
(C) The total monetary value of all final Codes:

goods and services produced within a
nation within one year. (a) (b) (c) (d)
(D) The total monetary value of goods and (A) (ii) (i) (iii) (iv)
services including barter transactions
within a nation in one year. (B) (iv) (i) (ii) (iii)
Answer: (C) (C) (ii) (iv) (iii) (i)
(D) (ii) (i) (iv) (iii)
3. If the equation y = 5 + 0.6x was Answer: (A)

graphed, the
(A) Slope would be – 5

5. Statement I: The slope of an
(B) Vertical intercept would be + 0.6 indifference curve is the Marginal Rate of
(C) Slope would be + 5

Substitution in the consumption (MRSc), (C) The perceived relationship between a
which is increasing. given level of efforts and an expected
performance.
Statement II: The slope of the budget line
is ratio of the prices of two goods and is (D) None of the above.
the Marginal Rate of Substitution in
exchange (MRSe) Answer: (D)
(A) Statement I and II are correct.
(B) Statement I is correct, but II is 8. Hawthorne experiments were conducted

incorrect. at
(C) Statements I and II are incorrect. (A) Hawthorne Electric Company
(D) Statement I is not correct, but II is (B) Western Electric Company

correct.
(C) General Electric Company
Answer: (D)
(D) Eastern Electric Company
Answer: (B)
6. Forming a fixed opinion or attitude
towards a single person or object is termed
as
(A) Perceptual defense
OD Interventions Grouping Term
(B) Stereo typing Proposed by
(C) The Halo effect a. OD Cube 1.

French and Bell
(D) The perceptual set
b. Consul cube 2.
Answer: (C) Freneh and Bell
c. Intervention families 3.
Blake and Mouton
7. Which of the following best describes
the theory X? d. Four quadrants 4.
Schmuck and Miles
(A) People are committed to their
responsibilities. Codes:
(B) Motivation is a result of rational abcd

behaviour towards attaining goals.
(A) 4 3 2 1
(B) 3 4 2 1

(C) 2 1 3 4
(D) 1 2 4 3 12. Which statement is true?
Answer: (A) (A) Job analysis is a group of positions

that are similar as to kind and level of
work.
10. Match the following: (B) A promotion is the advancement of an

employee to a better job better in terms of
a. Stability 1. Number of greater responsibilities, more prestige or
subordinates that report to one supervisor. status, greater skill and especially, increase
rate of pay or salary.
b. Strategy 2. The whole is
greater than the sum of its parts. (C) A promotion is the vertical transfer of
an employee.
c. Synergy 3. Plans for the
allocation of firm’s scarce resources to (D) All of the above
reach identified goals in time.
Answer: (B)
d. Span of control 4. Employees should
not be moved frequently from one job to
another
13. Job is defined as
Codes:
(A) Set of activities performed in the
abcd organization.
(A) 4 3 2 1 (B) Set of activities similar as to kind of

work.
(B) 3 4 1 2
(C) Set of position similar as to nature and
(C) 2 3 4 1 kind of work.
(D) 1 2 3 4 (D) None of these.
Answer: (A) Answer: (C)
11. Role of Human Resource Manager is
(A) Advisory 14. The benefit of paraphrasing in

Employee Appraisal is that it
(B) Mediator Role
(A) Suggests interest and active listening.
(C) Representative Role
(B) Clarify and convey to the rater that you
(D) All of the above are listening actively.
Answer: (D)

(C) Shows that you are trying to d. Industrial relations 4.
understand the emotional aspect of the Amicable and harmonious working in the
work place. organization.
(D) All of the above. Codes:
Answer: (B) abcd
(A) 1 2 3 4
15. An employee can be laid off when the (B) 1 4 3 2

organization has
(C) 3 1 4 2
(A) Acquired labour more than the
required. (D) 4 1 3 2
(B) Purchased raw material more than the Answer: (A)

immediate required.
(C) Breakdown of machinery.

17. Which one of the following is a
(D) All of the above. disadvantage of having expatriate
employees to staff international
Answer: (C) subsidiaries?
(A) Brings cultural similarities with parent

company.
(B) Gives employees a multinational
List – I List – orientation.
II
(C) Attempts to establish a foreign culture
(Items of HRM) to the company.
(Features)
(D) Provides broader global perspective.
a. Human Resource Planning 1.
Forecast man power needs based strategies Answer: (C)
of the trend.
b. Selection 2.
Use the criteria and measures developed to 18. Whistle Blowing is the situation
match individual skills in the job wherein an employee
requirements.
(A) Causes indiscipline in the
c. Advancement 3. organization.
Promotion.
(B) Discloses other employees’ illegal
immoral or illegitimate activities.

(C) Discloses the employer’s illegal Codes:
immoral or illegitimate activities.
abcd
(A) 3 4 2 1
Answer: (C)
(B) 1 2 3 4
(C) 2 4 1 3
19. Distributive bargaining may be
explained as (D) 4 1 3 2
(A) Bargaining wherein both parties are Answer: (D)

willing to negotiate over wages, hours and
conditions of employment. 21. Which of the below features is not
wealth maximization objective of
(B) Bargaining that focuses on convincing Financial Management? www.n etugc .com
the other party that the cost of disagreeing

with the proposed terms would be very (A) Considers both quantity and quality
high. dimensions of benefits.
(C) Bargaining that focuses on convincing (B) Based on the concept of cash flows
the other party that the benefits of agreeing generated by the decision rather than
with the proposed terms would be very accounting profit.
high.
(C) Decision should be oriented to the
(D) None of the above. maximization of profits.
Answer: (B) (D) Focus is on the value to the owners or

suppliers of equity capital.
Answer: (C)
a. Balancing Equity 1. The perceived

fairness of the pay structure within a firm. 22. Financial Break-even Level of EBIT is
one at which
b. Internal Equity 2. The perceived
fairness in pay relative to what other (A) EPS is one
employers are paying for the same type of
labour. (B) EPS is infinite
c. Individual Equity 3. The perceived (C) EPS is zero

fairness in establishment of internal and
external pay equity. (D) EPS is negative
d. External Equity 4. The perceived Answer: (C)

fairness of individual pay decisions.

23. Which of the following is not 26. Given the sales volume, which of the
considered by Miller-Orr Model? following would lead to an increase in
contribution margin?
(A) Variability in cash requirement
(A) Variable cost remains same.
(B) Cost of transaction
(B) Variable cost per unit decreases.
(C) Holding cash
(C) Variable cost per unit increases.
(D) Total annual requirement of cash
(D) Fixed cost increase.
Answer: (B)
Answer: (B)
24. If the minimum stock level and

average stock level of material A are 4000 27. Vertical merger represents merger of
and 9000 units respectively, what is the firms
Reorder quantity?
(A) Engaged in the same line of business.
(A) 8000 units
(B) At different stages of production in an
(B) 10,000 units industry.
(C) 11,000 units (C) Engaged in unrelated line of activities.
(D) 9,000 units (D) All of the above.
Answer: (D) Answer: (B)
25. According to Lintner Model, factors 28. A high debtor’s turnover ratio indicates
affecting dividend of current year are
(A) Low amount tied upon debtors
(A) DPS of previous year, EPS, target pay-
out ratio and adjustment rate. (B) Increase in sales turnover
(B) EBIT, interest rate and retention ratio. (C) Efficient conversion of debtors into
cash
(C) P/E ratio, retention ratio and pay-out
ratio. (D) (A) & (C)
(D) E/P ratio, pay-out ratio and rate of Answer: (D)

interest on it.
Answer: (A)

List – I (C) Decision - Tree
List – II (D) None of the above
(Statement) Answer: (B)
(Term)
I. Independent floating exchange rate. 31. When a firm has diversified in

1. Fiat money unrelated products, it is called
II. Exchange rate depending entirely on (A) Scramble diversification

market forces. 2. Clean float
(B) Related diversification
III. Floating exchange rate regime where
the monetary authorities interfere in the (C) Product mix
foreign exchange market for stabilizing
exchange rate. 3. Managed (D) Product line simplification
float
Answer: (A)
IV. Non-convertible paper currency.
4. Free float
Codes: 32. Which of the following condition is

true about determinants and strengths of
I II III IV positioning strategy?
(A) 2 4 3 1 (A) There should be competition

warranting positioning.
(B) 4 3 1 2
(B) The market segment to be served
(C) 1 3 4 2 should be sizeable and profitable.
(D) 2 1 3 4 (C) The market segment should be able to

effectively receive communication
Answer: (A) messages transmitted by the company.
(D) All of these.
30. Projected cash flows change with Answer: (D)

changes in projected demand, price, cost of
production, cost of capital, etc. All these
changes are accommodated in a random
manner by 33. Delphi method of estimating future
demand for a product or service is
(A) Sensitivity Analysis associated with
(B) Simulation Technique (A) Past sales analysis

(B) Expert opinion method Answer: (D)
(C) Market test method
(D) Composite of sales force opinion 36. Two statements are given below
relating to the consumer brand selection
Answer: (B) model.
Statement I: As per disjunctive decision

rule consumers set a minimum acceptable
34. A method for deriving the utility cut off level for each attribute and choose
values that consumers attach to varying the first alternative that meets the
levels of a product attribute is called minimum standard for all selected
attributes.
(A) Product analysis
Statement II: As per lexicographic
(B) Conjunctive analysis decision rule consumers choose the best
brand on the basis of its perceived most
(C) Conjoint analysis important attribute.
(D) Market price analysis Choose the correct option about the
statements from the options given below:
Answer: (C)
(A) Statement I alone is correct.
(B) Statement II alone is correct.

35. Two statements are given below:
(C) Both statements are correct.
Statement I: Opinion leaders who provide
product related information to the buyer (D) Both statements are wrong.
and assist him or her in buying is called
market mover. Answer: (B)
Statement II: Opinion leaders who

understand the buyer’s personal needs and
use situations and aid the buyer is called 37. Arrange the following stages in the
purchase pal. industrial buying process in the sequential
order:
Choose the correct option about the
statements from the options given below: 1. General need description
(A) Statement I alone is correct. 2. Supplier search
(B) Statement II alone is correct. 3. Problem recognition
(C) Both statements are wrong. 4. Performance review
(D) Both statements are correct. 5. Order route specification

6. Product specification (B) 1 3 2 4
7. Proposal solicitation (C) 2 3 1 4
8. Supplier selection (D) 3 1 2 4
(A) 3-1-2-6-7-8-5-4 Answer: (A)
(B) 3-2-1-7-6-5-8-4
(C) 3-1-6-2-7-5-8-4 39. Match the following:
(D) 3-1-6-2-7-8-5-4 List – I
Answer: (D)
List – II
(Statements)
List – I (Terms)
List – II a. A market situation in which many

competitors offering undifferentiated
(Statements) products or services. 1.
Pure monopoly
(Terms)
b. A market situation in which many
a. Attacking the weak spots of the competitors offering differentiated
competitor 1. Flank products or services. 2.
attack Oligopoly
b. Avoiding the main competitor and c. A market situation in which a small

attacking easier ones. 2. Frontal number of large firms offering
attack differentiated and standardized products or
services.
c. Attacking the leader on several areas.
3. 3.
Encirclement attack Monopolistic competition
d. Attacking the leader on its strong area. d. A market situation in which only one
4. By Pass attack firm provides a certain products or
services. 4.
Codes: Pure competition
abcd Codes:
(A) 1 4 3 2 abcd

(A) 4 3 1 2 (C) Statement I is incorrect, but II is
correct.
(B) 4 2 3 1
(D) Both statements are correct.
(C) 4 3 2 1
Answer: (D)
(D) 3 4 2 1
Answer: (C)
42. Positioning the production system
means
40. Which one of the three basic (A) Selecting the type of product design.
approaches used customarily explaining
the Marketing System? (B) Selecting the type of production
processing system.
(A) Commodity, institutions and
functional approach. (C) Selecting the type of finished goods
inventory policy for each product group.
(B) Commodity, functional risks,
management approach. (D) All of the above.
(C) Product, service mix, functional and Answer: (D)

institutional approach.

43. Which one is not a part of control
Answer: (B) charts for variables?
(A) X-chart
41. Statement I: One of the key factors (B) R-chart

impacting on Production Managers is that
the country’s borders no longer provide (C) σ-chart
protection from foreign imports due to
globalization. (D) C-chart
Statement II: To succeed in global Answer: (D)

competition, Production Management of
Companies must make a commitment to
innovate products and services with high
quality at low prices. 44. Match the following:
(A) Both the statements are incorrect. List – I
(B) Statement I is correct, but II is List – II

incorrect.
a. Decision-making under conditions of
certainty. (i) When the outcomes

are known but the probabilities of (C) (ii), (iii), (iv), (i)
outcomes are not known.
(D) (i), (ii), (iii), (iv)
b. Decision-making under conditions of
risk. (ii) When elements of Answer: (C)
decision problem are clear and also the
outcomes of different alternatives are
known.
46. Variable which has a strong contingent
c. Decision-making under conditions of effect on the independent dependent
uncertainty. (iii) When outcomes variable relationship is referred to as
probabilities are known.
(A) Extraneous variable
Codes:
(B) Intervening variable
(a) (b) (c)
(C) Moderating variable
(A) (i) (ii) (iii)
(B) (ii) (iii) (i)
Answer: (C)
(C) (iii) (ii) (i)
(D) (i) (iii) (ii)

47. Coefficient of determination (R2)
Answer: (B) indicates www.ne tugc .com
(A) Percentage of variation in the

dependent variable that can be explained
45. Edwards Deming, one of the Quality by independent variable.
Gurus, introduced a concept of cycle for
continuous improvement of quality. The (B) Percentage of variation in the
cycle consists of dependent variable that cannot be
explained by independent variable.
(i) Act
(C) Percentage variation in the
(ii) Plan independent variable that can be explained
by dependent variable.
(iii) Do
(D) Percentage variation in the
(iv) Check independent variable that cannot be
explained by the dependent variable.
The correct order of this cycle of activities
is Answer: (A)
(A) (i), (iii), (iv), (ii)
(B) (ii), (iv), (iii), (i) 48. If α = 0.05 and β = 0.10, the power of
that hypothesis test is

(A) 0.15 (D) (iii) (iv) (i) (ii)
(B) 0.90 Answer: (D)
(C) 0.85
(D) 0.95 50. From the statements given below,

choose the correct answer.
Answer: (B)
Statement I: One of the important aspects
of IT enabled services is value addition.
49. Match the following: Statement II: ERP and CRM are examples
for IT enabled services.
List – A
Codes:
List – B (A) Statements I and II are correct.
(a) Connects a very large number of (B) Statement I is correct, but II is

devices and spans across a dispersed incorrect.
geographical location covering many
cities. (i) Topology (C) Statements I and II are incorrect.
(b) Encrypted communication tunnels with (D) Statement I is incorrect, but II is

access control and user authentication correct.
(ii) Ethernet Answer: (A)
(c) Physical or geometric arrangement of

the network influenced by the physical
connections of links and nodes. 51. Statement 1: The IE Matrix is similar
(iii) Wide Area Network to the BCG Matrix in that both tools
involve plotting organisation divisions in a
(d) Local area network technology that schematic diagram.
sends communication through radio
frequency signals. Statement 2: The BCG Matrix requires
(iv) Virtual Private more information about the divisions than
Network the IE matrix.
Codes: (A) Statements 1 and 2 both are correct.
(a) (b) (c) (d) (B) Statements 1 and 2 both are incorrect.
(A) (iii) (i) (iv) (ii) (C) Statement 1 is correct, but statement 2
is incorrect.
(B) (iv) (iii) (i) (ii)
(D) Statement 1 is incorrect, but statement
(C) (iii) (iv) (ii) (i) 2 is correct.

Answer: (C) Statement 2: Setting the objectives should
be done after the SWOT analysis has been
performed.
52. Match the following: (A) Both the statements are correct.
a. Individual within (Psychological) 1. (B) Statement 1 is correct, but statement 2

Interpretations that third parties make is incorrect.
regarding contractual terms.
(C) Statement 1 is incorrect, but statement
b. Group within (Normative) 2. 2 is correct.
Broad beliefs and obligations associated
with society’s culture. (D) Both the statements are incorrect.
c. Individual outside (implied) 3. Answer: (A)

Beliefs that individuals hold, regarding
promises made, accepted and relied on
between and another themselves.
54. The three disciplines of WTO
d. Group outside (Social) 4. agreements are
The shared psychological contract that
emerges when members of a social (A) International trade in goods,
group/organization/ work unit hold. international transactions in services and
protection of intellectual property rights.
Codes:
(B) International trade in goods,
abcd international transaction in services and
protection of interest of MNCs.
(A) 1 2 3 4
(C) International trade in goods,
(B) 3 4 1 2 international transaction in services and
protection of interest of P.S. units.
(C) 2 3 4 1
(D) International trade in goods,
(D) 4 3 2 1 international transaction in services and
protection of interest of Domestic
Answer: (B) Government.
Answer: (A)
53. Statement 1: SWOT involves

specifying the objectives of the business
venture or project and identifying the 55. Substitute question marks with
internal and external factors that are appropriate terms:
favourable and unfavourable to achieve
that objective. Products Existing
Products New Products

56. Arrange the Entrepreneurial motivation
factors on the basis of proper sequences.
Markets
(A) Need for achievement, Locus of
Existing Market 1–? control, vision, desire for independence,
2–? passion and drive.
New Market 3–? (B) Locus of control, vision, desire for

4–? independence, passion, drives and need for
achievement.
Options:
(C) Vision, desire for independence,
(A) 1- Market development passion, drive, locus of control and need
for achievement.
2- Market penetration
(D) Desire for independence, need for
3- Product development achievement, and locus of control, vision,
passion and drive.
4- Diversification
Answer: (A)
(B) 1-Market penetration
2-Product development
57. The main function of venture capitalist
3-Market development is to
4-Diversification (A) Provide funds to the steps necessary to

establish the commercial viability of a new
(C) 1-Market development product, process or service.
2-Diversification (B) Provide funds at all stages of

marketing of new product, process or
3-Market penetration service.
4-Product development (C) Provide funds at all stages of

production of a new product, process or a
(D) 1-Market penetration service.
2-Product development (D) Provide funds at all stages of Research

of a new product, process or a service.
3-Diversification
Answer: (A)
4-Market development
Answer: (B)
58. An industrial unit, according to RBI, is
sick if

(A) Incurred cash loss in the previous (c) Product innovation (iii) Changes
accounting year. in the context in which the products/
services are introduced.
(B) Likely to incur loss in the following
year. (d) Process innovation (iv) Changes
in the underlying mental models which
(C) Current ratio is less than 1: 1 with frame what the organization does.
weak debt: equity ratio.
Codes:
(a) (b) (c) (d)
Answer: (D)
(A) (iv) (iii) (i) (ii)
(B) (i) (ii) (iii) (iv)

59. SIDBI has been entrusted with the
responsibility of (C) (iii) (iv) (ii) (i)
(A) Providing financial assistance to all (D) (ii) (i) (iv) (iii)
sectors.
Answer: (A)
(B) Developing medium and large scale
industry.
(C) Providing incentives to medium scale 61. A Business Organization deals with
industry. product/service and has relationship with
stakeholder which is being considered a
(D) Developing and supporting small part of ‘management discipline’ is known
business. as
Answer: (D) (A) Maximisation of Wealth
(B) Business Ethics
60. Match the following: (C) Relationship Management
List – I List – II (D) Optimisation of Profits
(Innovation) (Refers to) Answer: (B)
(a) Paradigm innovation (i) Changes

in the things which are organization offers.
62. Lawrence Kohlberg, in his six stage
(b) Position innovation (ii) Changes model of cognitive development, explains:
in the ways in which they are created and
delivered. (A) Why people make different decisions
in similar ethical situations?

(B) How people make decisions based on (D) Both (A) and (R) are incorrect.
the stage of cognitive moral development?
Answer: (D)
(C) Both of the above.

Answer: (B)
List – I
List – II
63. The Board of Directors can appoint
(a) Work ethics
(i) Additional Director (i)
includes taking care of issues like air and
(ii) Causal Director water pollution, toxic waste disposal etc.
(iii) Alternative Director (b) Values
(iv) Nominee Director (ii) is an organisation’s obligation to

benefit society in ways that transcend the
(A) (i), (ii) and (iii) prime business objectives of maximizing
profit.
(B) (ii), (iii) and (iv)
(c) Environmental responsibility of a
(C) (iii), (iv) and (i) business (iii) is a characteristic
attitude of a group towards what
(D) (iv), (i) and (ii) constitutes the morality of work.
Answer: (A) (d) Corporate Social Responsibility

(iv) determine the overall
personality of an individual and the
organization that he is working for.
64. Assertion (A): The poor compliance to
environmental regulations is attributed to Codes:
tax enforcement despite regulatory
framework. (a) (b) (c) (d)
Reasoning (R): The Government is not (A) (i) (ii) (iii) (iv)
capable of enforcing full compliance.
(B) (iv) (iii) (ii) (i)
(A) (A) is correct and (R) is the right
explanation of (A). (C) (iii) (iv) (i) (ii)
(B) (A) and (R) both are correct, but (R) is (D) (ii) (i) (iv) (iii)
Answer: (C)
(C) (A) is correct, but (R) is not correct.

66. The degree to which the value of future Answer: (D)
cash transactions can be affected by
exchange rate fluctuations is referred to as
(A) Economic exposure 69. Stops involved in settling disputes

under WTO is given below. Arrange them
(B) Transaction exposure in correct order.
(C) Translation exposure (i) Panel set up and appointment of

panelists.
(ii) Final Report to WTO members.
Answer: (B)
(iii) Final Report to partners.
(iv) Consultations, mediations, etc.

67. Forward Premium or Discount can be
computed by which of the following (v) Adoption of Report by Dispute
formulae? Settlement Body.
(A) (Spot rate – Forward rate) / Spot rate × Codes:

360 / Future point in time
(A) (i), (iv), (ii), (iii), (v)
(B) (Spot rate – Forward rate) / forward
rate × 360 / Future point in time (B) (iv), (i), (ii), (iii), (v)
(C) (Forward rate – Spot rate) / Forward (C) (iv), (i), (iii), (ii), (v)
rate × 360 / Future point in time
(D) (i), (ii), (iii), (v), (iv)
(D) (Forward rate – Spot rate) / Spot rate ×
360 / Future point in time Answer: (C)
Answer: (B)
70. From the statements given below,

choose the correct answer:
68. Which of the following is not a product
technology transfer? Statement I: To become a global
corporation, a firm passes through
(A) Collaboration in R and D. different stages, via, capturing markets
abroad, establishing joint
(B) Transfer of product designs and venture/subsidiaries abroad, developing
technical specifications. into MNCs and moving towards global
mode of operation.
(C) Feedback on product performance.
Statement II: Government support is not a
(D) Provision of machinery and equipment pre-requisite for the successful
to suppliers. globalization of the business.

(A) Statement I is correct and II is wrong. 73. Which of the following is the rate at
which a banker is willing to buy foreign
(B) Statements I and II are correct. currency?
(C) Statements I and II are wrong. (A) Ask rate
(D) Statement I is wrong, but II is correct. (B) Offer rate
Answer: (A) (C) Bid rate
(D) Spread rate
71. The main function(s) of WTO is/are: Answer: (C)
(A) To handle trade disputes

constructively.
74. Euro dollars are
(B) To help promote peace among
business community. (A) Currency
(C) To provide rules that make life easier (B) Deposits

for all people involved in foreign trade.
(C) Bonds
(D) Equity
Answer: (D) www.netugc.c om
Answer: (B)
72. Which of the following transactions

reflect economic exposure but not 75. When an Indian exporter avails post
transaction exposure? shipment credit in foreign currency, what
is taken as the bench mark for the interest
(A) A firm’s imports/exports denominated rate?
in local currency.
(A) Bench mark lending rate
(B) A firm’s imports/exports denominated
in foreign currency. (B) MIBOR
(C) Interest received from foreign (C) LIBOR

investments.
(D) Indian Bank rate
(D) Interest owed on foreign funds
borrowed. Answer: (C)
76.Because leading is one of the four basic
Answer: (A) managerial functions, _____ leaders.
A) all managers are
B) all managers should be
C) some managers are
D) some managers should be
Answer: B

77.Early Leadership trait research looked to B) democratic
find characteristics that might ___ C) Benelovent
A) distinguish ordinary leaders from great D) Autocratic
leaders Answer: C
B) define charisma
85.Which leadership style tends to
C) identify the physical traits of leaders
D) differentiate leaders from non leaders centralize authority and make unilateral
Answer: D decisions?
A) cultural style
78.Leaders are___. B) autocratic style
A) Individual people, while leadership is a C) democratic style
process. D) laissez-faire
B) the first step in the leadership process Answer: B
C) individual people who study the leadership
process 86.Jared's boss encourages employees to
D) the final step in the leadership process participate in the decision-making process
but does not give them complete freedom
Answer: A
to do as they like. She has this of
79.If a trait theory of leadership were true, leadership style.
then all leaders would possess _______. A) monarchial
A) Charisma B) autocratic
B) the same traits C) laissez-faire
C) Different traits D) democratic
D) Seven traits Answer: D
Answer: B
87.Monica's boss allows her to make any
80.The most successful early trait theories decision she thinks is important on the
focused on_____. spot without consulting anyone. Monica's
A) traits of famous leaders boss has this kind of leadership style.
B) traits of followers A) laissez-faire
C) traits associated with leadership B) autocratic style
D) traits with distinguish leaders from C) democratic style
nonleaders D) hands on style
Answer: C Answer: A
81.Trait theory helps explain why ____. 88.The Iowa studies indicated that this was
A) Some people are leaders the most successful leadership style.
B) Some people are not leaders A) autocratic
C) Successful leaders are effective B) laissez-faire
D) Leadership involves extraversion C) comination of autocratic and laissez-faire
Answer: C D) democratic
Answer: D
82.Behavioral theories of leadership
focused on_____. 89.A democratic consultative leader
A) who effective leaders A) seeks input and shares the final decision
B) what characteristics effective leaders had B) makes the final decision without input
C) how to identify effective leaders C) seeks input but makes the final decision by
D) what effective leaders did oneself
Answer: D D) shares the final decision without input
Answer: C
83.The promise of behavioral theories of
leadership held that this would be possible. 90.A democratic participate leader ____.
A) picking a leader out of the crowd A) seeks input and shares the final decision
B) being able to train a person to be a leader B) shares the final decision without input
C) explaining why successful leaders are so C) makes the final decision without input
successful D) seeks input but makes the final decision by
D) Eliminating ineffective leaders oneself
Answer: B Answer: A
84.The University of Iowa studies 91.Tannenbaum and Schmidt's continuum
discussed all of the following leadership studies suggested that managers should
styles except move toward_____leadership styles.
A) laissez-faire A) manager-centered

B) task centered grid?
C) employee centered A) impoverished management
D) quality centered B) Task management
Answer: C C) Middle of the road management
D) country club management
92.In the Ohio State studies, _______refers
Answer: B
to how strict a leader's standards are.
A) independent dimensions
B) comprehensive dimensions MOCK TEST - 13
C) initiating structure
D) consideration . The sum of the value of all final goods
Answer: C and services produced within a country
93.In the Ohio State studies, ____refers to and net factor income from abroad is
how much mutual trust exists between termed as
employees and leaders
A) consideration of limitations (A) GNP
B) consideration
C) initiating structure
D) initiating ideas (B) Nominal GDP
Answer: B
94.A high-high leader in the Ohio State (C) NNP
studies achieved the highest ratings with
respect to (D) Real GDP
A) both employee performance and
satisfaction
B) employee performance only
Answers: (A)
C) employee satisfaction only
D) employee performance for routine tasks
only
Answer: A 2. If a firm raises Rs. 1, 00,000 by the
95.The Ohio State studies indicated that issue of debentures at 10%, repayable after
leaders who were high in consideration 10 years, the rate of return that equates the
performed present value of cash inflows with the
A) best in all situations
B) best when employee tasks were routine
present value of cash outflows is referred
C) worst when employee tasks were routine to as
D) best when employee tasks were nonroutine
Answer: B (A) Explicit cost
96.According to the University of Michigan
studies, leaders who were ____were (B) Implicit cost
associated with higher group productivity
and higher job satisfaction. (C) Specific cost
A) Employee oriented
B) Initiating structure
C) Considerate (D) Future cost
D) Production oriented
Answer: A Answers: (A)
97.On the managerial grid, a leader who is
high in both concern for people and
concern for production would rate
A)1,1
B) 9,1
3. The major objective of economists to
C) 5,5 monopolies is
D) 9,9
Answer: D (A) Lack of technological progress in such
98.Which description best characterizes a industries.
9,1 leadership style on the managerial

(B) The dangerous impact on democratic (c) Percentage of annual net income earned
government. on average fund invested in a project. (iii)
Profitability Index
(C) The inability in an industry where
there is a single producer. (d) Investment divided by annual net cash
inflow. (iv)
(D) The tendency to restrict output and Average Rate of Return
charge higher price.
Codes:
Answers: (D)
(a) (b) (c) (d)
(A) (iii) (ii) (iv) (i)

4. Statement I: Demand for a commodity
refers to quantity of the commodity (B) (iii) (ii) (i) (iv)
demanded at a certain price during any
particular period of time. (C) (ii) (iii) (iv) (i)
Statement II: Contraction of demand is the (D) (ii) (iii) (i) (iv)
result of increase in the price of the goods
concerned. Answers: (C)
(A) Both I & II are correct.
(B) Both I and II are incorrect. 6. The process through which individuals
attempt to determine the causes behind
(C) I is correct and II is incorrect. others’ behaviour is known as
(D) II is correct and I is incorrect. (A) Perception
Answers: (A) (B) Attitude
(C) Attribution
5. Match the items given in List-I with (D) Social identity theory
most suitable options given in List-II.
Answers: (C)
List – I
List – II
7. Which theory of human motivation
(a) Rate of discount which equates the net focuses on personal perceptions of the
present value to zero. (i) performance process? www. netu gc.co m
Payback period
(A) Adam’s Theory of Inequality
(b) Ratio of present value of cash inflows
to the cash outflow. (B) McClelland’s Need Theory
(ii) Internal Rate of Return
(C) Vroom’s Expectancy Theory

(D) Alderfer’s ERG Theory (B) 2 3 4 1
Answers: (C) (C) 3 4 1 2
(D) 4 3 2 1
8. Annual Reports, Balance Sheets, Answers: (D)

Brochures and Advertisements in
organisational communication are the
means to aim at
(A) Influencing
a. Delegating 1. A
(B) Image building function of a situation wherein a leader is
effective only when the styles used to
(C) Group building influence and alter the situation is
appropriate.
(D) Credibility building
b. Situational theory 2. Low
Answers: (B) nurturing and low regulating behaviour.
c. Grid training 3. A
function of a situation wherein a leader
9. Match the following: permits subordinates to take part in
decision making and permit them a
a. Attitudes 1. Beliefs that considerable degree of autonomy.
individuals possess certain characteristics
because of their membership in certain d. Participative Leadership 4. A multi-
groups. step process designed to cultivate concern
for people and concern for production.
b. Job Satisfaction 2. Negative attitude
toward the members of specific groups, Codes:
based solely on the fact that they are
members of those groups. abcd
c. Prejudice 3. Positive or (A) 1 2 3 4

negative attitudes held by individuals
toward their jobs. (B) 2 1 4 3
d. Stereo types 4. Relatively stable (C) 3 2 4 1

clusters of feelings, beliefs and
behavioural intentions toward specific (D) 4 3 1 2
objects, people or institutions.
Answers: (C)
Codes:
11. On-the-job training methods are not
abcd based on
(A) 1 2 3 4 (A) Demonstration methods

(B) Interactive methods Answers: (D)
(C) Vestibule Training methods
(D) Apprentice training method 14. Performance appraisal includes
Answers: (B) (A) Check reviews done by the

supervisors.
(B) Review his performance in relation to

12. Minimum wage means the objectives and other behaviours.
(A) Wage sufficient to ensure the (C) Promote employees for self-appraisal.
workman food, shelter, clothing, frugal
comfort and provision for evil days. (D) All of the above.
(B) Wages paid in proportion to Answers: (D)

workman’s work efficiency.
(C) A wage sufficient to satisfy the

workman’s basic needs. 15. Match the following:
(D) A sum of money paid under contract a. Human Resource Strategy 1. A

by an employer to a workman for services goal-directed approach in which workers
rendered. and their supervisors set goals together for
the upcoming appraisal period.
Answers: (C)
b. Compensation 2.
Time during which employees can choose
not to be at work.
13. Which of the following statement is
true? c. Flexitime 3. A
legally required benefit that provides
(A) Profit sharing is an agreement freely medical care, income continuation and
entered into by which the employees
receive share fixed in advance from the rehabilitation expenses.
organization’s profits.
d. Management by Objectives 4. A
(B) An experiment in profit shares on a firm’s deliberate use of human resources to
wide scale would therefore be definitely help it to gain or maintain an edge against
undertaking a voyage of an unchartered its competitors.
sea.
Codes:
(C) Profit distribution under a profit
sharing plan are used to fund employee abcd
retirement plans.
(A) 1 2 3 4
(B) 4 3 2 1

(C) 2 3 4 1 (A) Net Income Approach
(D) 3 4 1 2 (B) Net Operating Income Approach
Answers: (B) (C) Modigliani-Miller Approach
16. In which case, the acquirer puts Answers: (B)

pressure on the management of the target
company by threatening to make an open
offer; the board capitulates straight away
and agrees for settlement with the acquirer 19. Which is the assumption of Modigliani
for change of control. and Miller approach to cost of capital?
(A) Poison Put (A) The firms can be classified into

homogeneous risk class.
(B) Bear Hug
(B) The capital markets are assumed to be
(C) Poison Pill perfect.
(D) None of the above (C) All investors have the same
expectations from a firm’s net operating
Answers: (B) income which is necessary to evaluate the
value of a firm.

17. Which of the following method of
incorporation of risk in the capital Answers: (D) www.netug c.co m
budgeting decision framework is useful for

situations in which decisions at one point
of time also affect the decisions of the firm
at some later date? 20. Match the following:
(A) Certainty Equivalent Approach List – I List – II
(B) Probability Distribution Approach (Functions of Finance)

(Significance)
(C) Risk-adjusted Discount Rate Approach
a. Financial Statements 1. Check on
(D) Decision-tree Approach Financial Activities
Answers: (D) b. Administration of Tax 2. Reduction

of Tax Liability
c. Internal Audit 3. Allocation

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

d. Budgeting 4. Income
Statement
23. Which of the following combination,
Codes: according to hierarchy of effects model is
correct?
abcd
(A) Awareness – Liking – Knowledge –
(A) 1 2 3 4 Conviction – Preference – Purchase.
(B) 4 3 2 1 (B) Awareness – Knowledge – Liking –

Preference – Conviction – Purchase.
(C) 4 2 1 3
(C) Awareness – Liking – Knowledge –
(D) 2 3 4 1 Conviction – Purchase – Preference.
Answers: (C) (D) Awareness – Preference – Knowledge

– Liking – Preference – Purchase.
21. A deliberate and careful choice of
organisation, product, price promotion, Answers: (B)
place strategies and policies best define the
concept of
(A) Marketing Mix 24. This consists of two lists of statements

or terms and the candidate has to match an
(B) Product Mix item in one list with an item in the other.
(C) Market Penetration List – I
(D) Market Segmentation List – II
Answers: (A) (Statement)
(Terms)
22. Rational motives in buying process are I. Brands which are evaluated for the
explained as purchase decision. 1.
Consideration set
(A) Motives based on careful, logical
reasoning and self-acceptance. II. Brands which are considered by the
buyer for evaluation. 2. Evoked set
(B) Motives based on sensual satisfaction,
fear and entertainment. III. Brands which are disliked and
avoided. 3. Inept
(C) Activity buyer adopts to satisfy buying set
needs.
IV. Brands which the buyer is aware but is
(D) All of the above. indifferent towards it. 4. Inert set
Answers: (A) Codes:

I II III IV
(A) 2 3 1 4 27. Statement I: Mean (–X) chart do not

give the desired result about process
(B) 1 2 3 4 variability.
(C) 2 1 3 4 Statement II: Range (R) chart monitors

process variability.
(D) 2 1 4 3
(A) Statement I is correct, but Statement II
Answers: (B) is false.
(B) Statement II is correct, but Statement I

is false.
25. “Marketing concept is the recognition
on the part of management that all (C) Both Statements I and II are correct.
business decisions at the firm must be
made in the light of customer needs and (D) Both Statements I and II are false.
wants, hence that all marketing activities
must be under one supervision and that all Answers: (C)
activities of a firm must be coordinated at
the top in the light of market
requirements.” Who said it?
28. Which one is not a part of control
(A) Lazo and Carton charts for attributes?
(B) Schwartz G (A) P-chart
(C) King RL (B) σ-chart
(D) C.P. Mc Namara (C) np-chart
Answers: (Wrong question) (D) c-chart
Answers: (B)

qualitative forecasting method?
29. There are different phases in a
(A) Educated guess Operations Research Project. They are
(B) Executive Committee Consensus (i) Research phase
(C) Delphi method (ii) Action phase
(D) Linear regression method (iii) Judgement phase
Answers: (D) The correct sequence of these phases is

(A) (i), (ii), (iii) (A) Chi-square test
(B) (iii), (i), (ii) (B) Fisher Irwin test
(C) (ii), (iii), (i) (C) Cochran Q test
(D) (iii), (ii), (i) (D) Kruskal Wallis test
Answers: (B) www.netu gc.co m Answers: (B)
30. The Graphical method can be used to 33. Match the items given in List-I with
solve most appropriate options given in List-II.
(A) A Linear Programming Problem (LPP) List – I

with all integer data.
List – II
(B) A LPP with two decision variables.
(a) Centroid Method
(C) Any LPP.
(i) Multiple Regression
(D) A transportation problem with two
origins and two destinations. (b) Hierarchical Method
Answers: (B) (ii) Factor Analysis
(c) Relationship between a single metric

dependent and two or more independent
31. A vendor can make a profit of Rs. variables (iii)
3,000 with a probability of 0.4 or make a MANOVA
loss of Rs. 1,000 with a probability of 0.6.
What is his expected profit? (d) The main and interactive effects of
categorical variables on multiple
(A) Rs. 600 dependent interval variables. (iv)
Cluster Analysis
(B) Rs. 800
Codes:
(C) Rs. 1,000
(a) (b) (c) (d)
(D) Rs. 500
(A) (iv) (ii) (i) (iii)
Answers: (A)
(B) (ii) (iv) (i) (iii)
(C) (ii) (iv) (iii) (i)

32. If the sample size is less than 50,
which non parametric test can be used to (D) (iv) (iii) (i) (ii)
test the independence of attributes?

Answers: (B) (C) (i) (ii) (iii)
(D) (ii) (i) (iii)
34. Identify the window not associated Answers: (A)

with SPSS.
(A) Editor
36. In BCG Matrix which division
(B) Syntax represents the organisation’s best long-run
opportunities for growth and profitability?
(C) Output
(A) Question marks
(D) Format Cells
(B) Stars
Answers: (D)
(C) Cash Cows
(D) Dogs
35. Match the items given in Column-A
with the items given in Column-B. Answers: (B)
Column –
A
37. In a comprehensive strategy
Column - B formulation framework which matrix
reveals the relative attractiveness of
(a) A process to upgrade the quality of the alternative strategies and thus provides
data before it is moved into a data objective basis for selecting specific
warehouse. strategies.
(i) Pattern recognition
(A) SPACE Matrix
(b) A system that is used to run the
business in real time and is based on (B) SWOT Matrix
current data. (ii)
Data Scrubbing (C) QSPM Matrix
(c) A critical success factor in data mining (D) Competitive Profile Matrix (CPM)
of large data store.
Answers: (C)
(iii) Operational system
Codes:
38. Stage 2 of strategy formulation
(a) (b) (c) consists of
(A) (ii) (iii) (i) (A) EFE Matrix, the IFE Matrix and the
Competitive Profile Matrix (CPM).
(B) (iii) (ii) (i)

(B) SWOT Matrix, SPACE Matrix, BCG List – I List –
Matrix, the Internal- External (IE) Matrix, II
and the Grand Strategy Matrix.
(a) Italian Culture i.
(C) Quantitative Strategic Planning Matrix Importance on group loyalty and
(QSPM). consensus
(D) EFE Matrix, the IFE Matrix and (b) American Culture ii.
Quantitative Strategic Planning Matrix Employment as workers of those who are
(QSPM). agreeable, respectful and obedient rather
than innovative, creative and independent.
Answers: (B)
(c) Mexican Culture iii. Willing
to do business with individuals they do not
know.
(d) Japanese Culture iv. A culture
Term Explanation where in you do not soften up executives
with praise before criticize.
a. Strategy 1. Enduring statements of
purpose that distinguish one business from Codes:
other simple firms.
abcd
b. Vision 2. Specific results that an
organization seeks to achieve. (A) i ii iii iv
c. Mission 3. What do we want to (B) iv iii ii i

become?
(C) ii iii iv i
d. Objectives 4. Means by which long
term objectives will be achieved. (D) iii iv i ii
Codes: Answers: (B)
abcd
(A) 4 3 1 2 41. An Entrepreneur who is dominated

more by customs, religions, traditions and
(B) 4 2 3 1 past practices and he is not ready to take
any risk is called as
(C) 1 3 2 4
(A) Drone Entrepreneur
(D) 1 2 3 4
(B) Adoptive Entrepreneur
Answers: (A)
(C) Fabian Entrepreneur
(D) Innovative Entrepreneur


Answers: (C) (D) 4 2 3 1
Answers: (B)
42. “Poverty is an artificial creation. It

does not belong to human civilization and
we can change that and can make people 44. _______ means identifying and
come out of poverty through redesigning imitating the best in the world at specific
our institutions and policies.” This tasks and functions.
preamble refers to
(A) Quality circle
(A) Women Entrepreneurship
(B) Outsourcing
(B) Corporate Entrepreneurship
(C) Bench marking
(C) Social Entrepreneurship
(D) Continuous Improvement
Answers: (C)
Answers: (C)

(a) Action planning (i) New
List – I List – II Actions are taken and old habits are
broken.
(Subject) (Technique)
(b) Accountability (ii) It is the
a. Entrepreneurship 1. periodic review of what has already been
Innovation executed.
b. Marketing 2. (c) Working the plan (iii) It is the

Promotion Mix art of delegation to implement a business
plan.
c. Inventory Management 3. Reorder
Level (d) Reviewing the progress (iv) Making
decisions relating to the order in which the
d. HR Planning 4. Appraisals Business plan is implemented.
Codes: www.netug c.co m Codes:
abcd (a) (b) (c) (d)
(A) 1 3 2 4 (A) (ii) (iii) (iv) (i)
(B) 1 2 3 4 (B) (iv) (iii) (i) (ii)
(C) 4 3 2 1 (C) (i) (iv) (iii) (ii)

(D) (iii) (iv) (ii) (i) (c) Indian ethos
(iii)Bribery
Answers: (B)
(d) Environmental responsibility (iv)
Trust worthiness
46. Which of the following duties is not a Codes:

general duty of directors of a company?
(a) (b) (c) (d)
(A) Duty of good faith
(A) (i) (iii) (ii) (iv)
(B) Duty of care
(B) (iv) (iii) (i) (ii)
(C) Duty to attend Board Meeting
(C) (ii) (iii) (iv) (i)
(D) Duty not to delegate
(D) (i) (iii) (iv) (ii)
Answers: (C)
Answers: (B)
47. The principles to be followed for

corporate social responsibility are 49. The obligation of an organization
behave in a ethical way is known as
(A) involvement of stakeholders.
(A) Knowledge about ethics
(B) maintaining transparency in reporting.
(B) Social responsibility of business
(C) independent verification of policies
and outcome. (C) Organisational behaviour
(D) All of the above. (D) Business without ethics
Answers: (D) Answers: (B)
48. Match the following: 50. Identify the correct sequence of steps
in a value identification process:
List – I List -
II (i) Define the role of executive in leading
the staff.
(a) Value (i)
Aham Brahmasmi (ii) Learn about and discuss the power of
shared values.
(b) Unethical behaviour (ii)
Recycling Waste (iii) Obtain consensus that the leaders are
committed to creating value based
workplace.

(iv) Provide written material the D. Avoiding channel conflict
executives can share with their reporting Answer:d
staff. 54.The advantages of a brick-and-click
strategy include
Codes: A. Being able to attract bargain-hunting
shoppers by selling the company's
merchandise online at lower prices than in
(A) (i), (ii), (iii) and (iv) traditional retail stores
B. Being able to offer a much wider product
(B) (iv), (ii), (iii) and (i) line than is stocked at brick-and-mortar stores
C. Low incremental investments to establish a
Web site, the ability to access a wider
(C) (ii), (iii), (i) and (iv) customer base and the ability to use existing
distribution centers and/or company store
(D) (ii), (iii), (iv) and (i) locations for picking orders from on-hand
inventories and making deliveries
Answer:c
Answers: (C)
55.Two big appeals of a brick-and-click
strategy are
51.One of the biggest Internet-related A. Lower advertising costs and enhanced
strategic issues facing many businesses is ability to charge lower prices than rivals
A. Whether to have a company Web site B. Economically expanding a company's
B. Whether and how to incorporate use of geographic reach and giving existing and
Internet technology applications in performing potential customers another choice of how to
various internal value chain activities communicate with the company, shop for
C. How best to try to offset the company's company products, make purchases or resolve
competitive disadvantage vis-à-vis rivals that customer service problems
already sell direct to buyers at their Web site C. Low incremental investments to establish a
D. Whether to form a strategic alliance with a Web site and the ability of customers to use
pure dot-com enterprise existing company store locations to view and
E. What role the company's Web site should inspect items prior to purchase
play in the company's competitive strategy Answer:b
Answer:e 56.A company that elects to use the
52.Which of the following is not one of the Internet as its exclusive channel for
options that companies have for using the accessing buyers must address such
Internet as a distribution channel to access strategic issues as
buyers? A. Whether it will have a broad or narrow
A. Establishing a company Web site so as to product offering
have an Internet presence B. How it will deliver unique value to buyers
B. Operating a Web site that provides existing C. How it will draw traffic to its Web site and
and potential customers with extensive product then convert page views into revenues
information but that relies on click-throughs to D. Whether it will perform order fulfillment
distribution channel partners to handle orders activities internally or outsource them
and sales transactions E. All of the above
C. Using online sales at the company's Web Answer:e
site as a relatively minor distribution channel
Assuming a company elects to use the Internet
for achieving incremental sales
as its exclusive channel for accessing buyers,
Answer:a then which of the following is not one of the
53.One very important advantage of a strategic issues that it will need to address?
product-information-only Web site strategy A. Whether to pursue a competitive advantage
is based on low-costs, differentiation or more
A. Lower advertising costs and lower customer value for the money
service costs B. How to deliver unique value to buyers
B. Avoiding the extra costs associated with C. How to draw traffic to its Web site and then
operating Web site e-stores convert page views into revenues
C. Added ability to interest potential buyers in D. Whether to employ a forward integration
purchasing the company's products

strategy B. Technological change is rapid and following
Answer:d rivals find it easy to leapfrog the pioneer with
next-generation products of their own
57.Being first to initiate a particular move can C. The pioneer's skills, know-how and
have a high payoff when products are easily copied or even bested by
A. Pioneering helps build up a firm's image late movers
and reputation with buyers D. All of these
B. First-time buyers remain strongly loyal to Answer:d
pioneering firms in making repeat purchases
C. Moving first can result in a cost advantage 61.In which of the following cases are first-
over rivals mover disadvantages not likely to arise?
D. Moving first can constitute a preemptive A. When the costs of pioneering are much
strike, making imitation extra hard or unlikely higher than being a follower and only
E. All of these negligible buyer loyalty or cost savings accrue
Answer:e to the pioneer
B. When new infrastructure is needed before
58.In which of the following instances is being market demand can surge
a first-mover not particularly advantageous? C. When the pioneer's skills, know-how and
A. When a pioneer is using a low-cost provider products are easily copied or even bested by
strategy late movers
B. When buyers are not loyal to pioneering Answer:b
firms in making repeat purchases
C. When a pioneer is pursuing product 62.The task of crafting corporate strategy
innovation for a diversified company encompasses
Answer:b A. Picking the new industries to enter and
deciding on the means of entry
Because when to make a strategic move can B. Initiating actions to boost the combined
be just as important as what move to make, a performance of the businesses the firm has
company's best option with respect to timing is entered
A. To be the first mover C. Pursuing opportunities to leverage cross-
B. To be a fast follower business value chain relationships and
C. To be a late mover (because it is cheaper strategic fits into competitive advantage
and easier to imitate the successful moves of D. Establishing investment priorities and
the leaders and moving late allows a company steering corporate resources into the most
to avoid the mistakes and costs associated attractive business units
with trying to be a pioneer—first-mover E. All of these
disadvantages usually overwhelm first-mover Answer:e
advantages)
D. To be the last-mover—playing catch-up is 63.Which one of the following is not one of
usually fairly easily and nearly always much the elements of crafting corporate strategy
cheaper than any other option for a diversified company?
E. To carefully weigh the first-mover A. Picking new industries to enter and deciding
advantages against the first-mover on the means of entry
disadvantages and act accordingly B. Choosing the appropriate value chain for
Answer:e each business the company has entered
C. Pursuing opportunities to leverage cross-
59.When the race among rivals for industry business value chain relationships and
leadership is a marathon rather than a
strategic fits into competitive advantage
sprint,
Answer:b
A. It is best to be a fast follower rather than a
first mover or a slow mover Diversification merits strong consideration
B. Fast followers find it easy to leapfrog the whenever a single-business company
pioneer with even better next-generation A. Has integrated backward and forward as far
products of their own as it can
C. A slow mover may not be unduly penalized B. Is faced with diminishing market
and first-mover advantages can be fleeting opportunities and stagnating sales in its
Answer:c principal business
C. Has achieved industry leadership in its main
60.First-mover disadvantages arise when line of business
A. The costs of pioneering are much higher Answer:b
than being a follower and only negligible buyer
loyalty or cost savings accrue to the pioneer

64.Diversification ought to be considered when test and the better-off test
A. A company's profits are being squeezed Answer:d
and it needs to increase its net profit margins
and return on investment 69.o test whether a particular
diversification move has good prospects
B. A company lacks sustainable competitive
for creating added shareholder value,
advantage in its present business
C. A company begins to encounter diminishing corporate strategists should use
growth prospects in its mainstay business A. The profit test, the competitive strength test,
Answer:c the industry attractiveness test and the capital
gains test
65.Diversification becomes a relevant strategic B. The better-off test, the competitive
option in all but which one of the following advantage test, the profit expectations test and
situations? the shareholder value test
A. When a company spots opportunities to C. The barrier to entry test, the competitive
expand into industries whose technologies and advantage test, the growth test and the stock
products complement its present business price effect test
B. When a company is only earning a low D. The strategic fit test, the industry
profit margin in its principal business attractiveness test, the growth test, the
C. When a company has a powerful and well- dividend effect test and the capital gains test
known brand name that can be transferred to E. The attractiveness test, the cost of entry
the products of other businesses and thereby test and the better-off test
used as a lever for driving up the sales and Answer:e
profits of such businesses
70.The attractiveness test for evaluating
Answer:b
whether diversification into a particular
66.Diversifying into new businesses is industry is likely to build shareholder value
justifiable only if it involves determining whether
A. Results in increased profit margins and A. Conditions in the target industry are
bigger total profits sufficiently attractive to permit earning
B. Builds shareholder value consistently good profits and returns on
C. Helps acompany escape the rigors of investment
competition in its present business B. The potential diversification move will boost
Answer:b the company's competitive advantage in its
existing business
67.To create value for shareholders via C. Shareholders will viewed the contemplated
diversification, a company must diversification move as attractive
A. Get into new businesses that are profitable Answer:a
B. Diversify into industries that are growing
rapidly 71.The cost-of-entry test for evaluating
C. Spread its business risk across various whether diversification into a particular
industries by only acquiring firms that are industry is likely to build shareholder value
strong competitors in their respective involves
industries A. Determining whether a newly entered
D. Diversify into businesses that can perform business presents opportunities to cost-
better under a single corporate umbrella than efficiently transfer competitively valuable skills
they could perform operating as independent, or technology from one business to another
stand-alone businesses B. Determining whether the cost to enter the
Answer:d target industry will strain the company's credit
rating
68.The three tests for judging whether a C. Considering whether a company's costs to
particular diversification move can create
enter the target industry are low enough to
value for shareholders are
preserve attractive profitability or so high that
A. The attractiveness test, the profitability test the potentials for good profitability and return
and the shareholder value test on investment are eroded
B. The strategic fit test, the competitive Answer:c
advantage test and the return on investment
test 72.The better-off test for evaluating
C. The resource fit test, the profitability test whether a particular diversification move is
and the shareholder value test likely to generate added value for
D. The attractiveness test, the cost-of-entry shareholders involves
A. Assessing whether the diversification move

will make the company better off because it activities that have to be performed in the
will produce a greater number of core target business/industry
competencies B. Acquiring a company already operating in
B. Assessing whether the diversification move the target industry, creating a new subsidiary
will make the company better off by improving internally to compete in the target industry or
its balance sheet strength and credit rating forming a joint venture with another company
C. Assessing whether the diversification move to enter the target industry
will make the company better off by spreading C. Integrating forward or backward into the
shareholder risks across a greater number of target industry
businesses and industries Answer:b
D. Evaluating whether the diversification move
will produce a 1 + 1 =3 outcome such that the 77.Which one of the following is not a
company's different businesses perform better factor that makes it appealing to diversify
together than apart and the whole ends up into a new industry by forming an internal
being greater than the sum of the parts start-up subsidiary to enter and compete in
the target industry?
Answer:d
A. When internal entry is cheaper than entry
73.Acquisition of an existing business is an via acquisition
attractive strategy option for entering a B. When a company possesses the skills and
promising new industry because it resources to overcome entry barriers and
A. Is an effective way to hurdle entry barriers, there is ample time to launch the business and
is usually quicker than trying to launch a compete effectively
brand-new start-up operation and allows the C. When adding new production capacity will
acquirer to move directly to the task of building not adversely impact the supply demand
a strong position in the target industry balance in the industry by creating oversupply
B. Is less expensive than launching a new conditions
start-up operation, thus passing the cost-of- D. When the industry is growing rapidly and
entry test the target industry is comprised of several
C. Is a less risky way of passing the relatively large and well-established firms
attractiveness test Answer:d
Answer:a
78.Diversifying into a new industry by
74.Internal start-up of a new business forming a new internal subsidiary to enter
subsidiary can be a more attractive means of and compete in the target industry is
entering a desirable new business than is attractive when
acquiring an existing firm already in the A. All of the potential acquisition candidates
targeted industry when are losing money
A. The costs associated with internal startup B. It is impractical to outsource most of the
are less than the costs of buying an existing value chain activities that have to be
company and the company has ample time performed in the target business/industry
and adequate resources to launch the new C. There is ample time to launch the new
internal start-up business from the ground up business from the ground up and entry barriers
B. There is a small pool of desirable can be hurdled at acceptable cost
acquisition candidates Answer:c
C. The target industry is growing rapidly and
79.A joint venture is an attractive way for a
no good joint venture partners are available
company to enter a new industry when
Answer:a
A. A firm is missing some essential skills or
75.The most popular strategy for entering new capabilities or resources and needs a partner
businesses and accomplishing diversification to supply the missing expertise and
is competencies or fill the resource gaps
A. Forming a joint venture with another B. It needs access to economies of scope and
company to enter the target industry good financial fits in order to be cost-
B. Internal startup competitive
C. Acquisition of an existing business already C. It is uneconomical for the firm to achieve
in the chosen industry economies of scope on its own initiative
Answer:c Answer:a
76.A company can best accomplish 80.A joint venture is an attractive way for a
diversification into new industries by company to enter a new industry when
A. Outsourcing most of the value chain A. The pool of attractive acquisition candidates

in the target industry is relatively small the production of tennis rackets
B. It needs better access to economies of C. A PC producer deciding to diversify into
scope in order to be cost-competitive producing and marketing its own brands of
C. The industry is growing slowly and adding MP3 players and LCD TVs
too much capacity too soon could create Answer:c
oversupply conditions
D. The firm has no prior experience with 85.A big advantage of related diversification is
diversification and the industry is on the verge that
of explosive growth A. It offers ways for a firm to realize 1 + 1 = 3
E. The opportunity is too risky or complex for a benefits because the value chains of the
company to pursue alone, a company lacks different businesses present competitively
some important resources or competencies valuable cross-business relationships
and needs a partner to supply them and/or a B. It is less capital intensive and usually more
company needs a local partner in order to profitable than unrelated diversification
enter a desirable business in a foreign country C. It involves diversifying into industries having
Answer:e the same kinds of key success factors
Answer:a
81.The essential requirement for different
businesses to be "related" is that 86.Which of the following is not one of the
A. Their value chains possess competitively appeals of related diversification?
valuable cross-business relationships A. It can offer opportunities for transferring
B. The products of the different businesses are expertise, technology and other capabilities
bought by much the same types of buyers from one business to another
C. The products of the different businesses are B. It can offer opportunities for reducing costs
sold in the same types of retail stores and for leveraging use of a competitively
Answer:a powerful brand name
C. Related diversification is particularly well-
82.Businesses are said to be "related" suited for the use of offensive strategies and
when capturing valuable financial fits
A. They have several key suppliers and Answer:c
several key customers in common
B. Their value chains have the same number 87.Which of the following is an important
of primary activities appeal of a related diversification strategy?
C. Their products are both sold through A. Related diversification is an effective way of
retailers capturing valuable financial fit benefits
D. Their value chains possess competitively B. Related diversification offers more
valuable cross-business relationships that competitive advantage potential than does
present opportunities to transfer resources unrelated diversification
from one business to another, combine similar C. Related diversification offers significant
activities and reduce costs, share use of a opportunities to strongly differentiate a
well-known brand name and/or create mutually company's product offerings from those of
useful resource strengths and capabilities rivals
Answer:d Answer:c
83.Which of the following is the best example 88.A company pursuing a related
of related diversification? diversification strategy would likely
A. An airline firm acquiring a rent-a-car address the issue of what additional
industries/businesses to diversify into by
company
B. A greeting card manufacturer deciding to A. Locating businesses with well-known brand
open a chain of stores to retail its lines of names and large market shares
greeting cards B. Identifying industries with the least
C. A manufacturer of ready-to-eat cereals competitive intensity
acquiring a producer of cake mixes and baking C. Identifying an attractive industry whose
products value chain has good strategic fit with one or
Answer:c more of the firm's present businesses
Answer:c
84.Which of the following is the best example
of related diversification? 89.One strategic fit-based approach to
A. A beer brewer acquiring a maker of related diversification would be to
aluminum cans A. Diversify into new industries that present
B. A manufacturer of canoes diversifying into opportunities to transfer competitively valuable
expertise, technological know-how or other

skills/capabilities from one sister business to in multiple businesses
another B. Arise only from strategic fit relationships in
B. Diversify into those industries where the the production portions of the value chains of
same kinds of driving forces and competitive sister businesses
forces prevail, thus allowing use of much the C. Are more associated with unrelated
same competitive strategy in all of the diversification than related diversification
business a company is in Answer:a
C. Acquire rival firms that have broader
product lines so as to give the company 94.Economies of scope
access to a wider range of buyer groups A. Stem from the cost-saving efficiencies of
Answer:a operating over a wider geographic area
B. Have to do with the cost-saving efficiencies
90.The best place to look for cross- of distributing a firm's product through many
business strategic fits is different distribution channels simultaneously
A. In R&D and technology activities C. Stem from cost-saving strategic fits along
B. In supply chain activities the value chains of related businesses
C. In sales and marketing activities Answer:c
D. In production and distribution activities
E. Anywhere along the respective value chains 95.Which of the following best illustrates
an economy of scope?
of related businesses—no one place is best
Answer:e A. Being able to eliminate or reduce costs by
combining related value-chain activities of
91.Cross-business strategic fits can be different businesses into a single operation
found B. Being able to eliminate or reduce costs by
A. In unrelated as well as related businesses performing all of the value chain activities of
and in the markets of foreign countries as well related sister businesses at the same location
as in domestic markets C. Being able to eliminate or reduce costs by
B. Only in businesses whose extending the firm's scope of operations over a
products/services satisfy the same general wider geographic area
types of buyer needs and preferences Answer:c
C. Mainly in either technology related activities
96.What makes related diversification an
or sales and marketing activities
attractive strategy is
D. Chiefly in the R&D portions of the value
chains of unrelated businesses A. The ability to broaden the company's
E. Anywhere along the respective value chains product line
of related businesses B. The opportunity to convert cross-business
Answer:e strategic fits into competitive advantages over
business rivals whose operations don't offer
92.Which of the following statements about comparable strategic fit benefits
cross-business strategic fit in a diversified C. The potential for improving the stability of
enterprise is not accurate? the company's financial performance
A. Strategic fit between two businesses exists Answer:b
when the management know-how
accumulated in one business is transferable to 97) A diversified company that leverages
the other the strategic fits of its related businesses
B. Strategic fit exists when two businesses into competitive advantage
present opportunities to economize on A. Has a distinctive competence in its related
marketing, selling and distribution costs businesses
C. Competitively valuable cross-business B. Has a clear path to achieving 1 + 1 = 3
strategic fits are what enable related gains in shareholder value
diversification to produce a 1 + 1 = 3 C. Has a clear path to global market
performance outcome leadership in the industries where it has
D. Strategic fit is primarily a byproduct of related businesses
unrelated diversification and exists when the Answer:b
value chain activities of unrelated businesses 98.A strategy of diversifying into unrelated
possess economies of scope and good businesses
financial fit A. Is aimed at achieving good financial fit
Answer:d (whereas related diversification aims at good
93.Economies of scope strategic fit)
A. Are cost reductions that flow from operating B. Is the best way for a company to pass the
attractiveness test in choosing which types of

businesses/industries to enter businesses could achieve if they were
C. Discounts the value and importance of independent
strategic fit benefits and instead focuses on C. There is a strong chance that the combined
building and managing a group of businesses competitive advantages of the various
capable of delivering good financial businesses will produce a 1 + 1 = 3
performance irrespective of the industries performance outcome as opposed to just a 1 +
these businesses are in 1 = 2 performance outcome
Answer:c Answer:b
99.Different businesses are said to be 102.In diversified companies with unrelated
"unrelated" when businesses, the strategic attention of top
A. They are in different industries executives tends to be focused on
B. The products of the different businesses are A. Screening acquisition candidates and
not bought by the same types of buyers or sold evaluating the pros and cons or keeping or
in the same types of retail stores divesting existing businesses
C. The products of the different businesses B. Identifying acquisition candidates that can
satisfy different buyer needs pass the better-off test
D. The businesses have different supply C. Identifying opportunities to achieve greater
chains and different types of suppliers economies of scope
E. There is an absence of competitively Answer:a
valuable strategic fits between their respective
value chains 103.Which of the following is not likely to
command much strategic attention from
Answer:e
the top executives of companies pursuing
100.The basic premise of unrelated an unrelated diversification strategy?
diversification is that A. Acquiring new businesses with attractive
A. The least risky way to diversify is to seek profit prospects
out businesses that are leaders in their B. Whether existing businesses should be
respective industry retained or divested based on their ability to
B. The best companies to acquire are those meet corporate targets for profit and returns on
that offer the greatest economies of scope investment
rather than the greatest economies of scale C. Looking for new businesses that present
C. The best way to build shareholder value is good opportunities for achieving economies of
to acquire businesses with strong cross- scope
business financial fit Answer:c
D. Any company that can be acquired on good
104.Which of the following merits top
financial terms and that has satisfactory
priority attention by top executives of
growth and earnings potential represents a
companies pursuing an unrelated
good acquisition and a good business
opportunity diversification strategy?
Answer:d A. Acquiring new businesses that utilize much
the same technology as existing businesses
101.Which of the following is the best B. Whether to keep or divest businesses
example of unrelated diversification? whose competitive strategies do not match the
A. A chain of radio stations acquiring TV overall competitive strategy of the corporation
stations C. Looking for new businesses having
B. An electrical equipment manufacturer attractive distribution-related and customer-
acquiring an athletic footwear company related strategic fits with existing businesses
C. A producer of canned soups acquiring a D. Identifying acquisition candidates that are
maker of breakfast cereals financially distressed, can be acquired at a
Answer:b bargain price and whose operations can, in
management's opinion, be turned around with
In companies pursuing a strategy of the aid of the parent company's financial
unrelated diversification, resources and managerial know-how
A. The main basis for competitive advantage Answer:d
and improved shareholder value is increased
ability to achieve economies of scope 105.With an unrelated diversification
B. Each business is on its own in trying to build strategy, the types of companies that make
a competitive edge and the consolidated particularly attractive acquisition targets
performance of the businesses is likely to be are
no better than the sum of what the individual A. Financially distressed companies with good

turnaround potential, undervalued companies
that can be acquired at a bargain price and
companies that have bright growth prospects
but are short on investment capital
B. Companies offering the biggest potential to
reduce labor costs
C. Cash cow businesses with excellent
financial fit
Answer:a
106.A key issue in companies pursuing an
unrelated diversification strategy is
A. How wide a net to cast in building a portfolio
of unrelated businesses
B. Whether to keep or divest businesses
whose technological approaches do not match
the overall technology and R&D strategy of the
corporation
C. How quickly to divest businesses whose
competitive strategies do not closely match the
competitive strategies of sister businesses
Answer:a
107.One of the chief advantages of an
unrelated diversification strategy is that it
A. Expands a firm's competitive advantage
opportunities to include a wider array of
businesses
B. Spreads the stockholders' risks across a
group of truly diverse businesses
C. Increases strategic fit opportunities and the
potential for a 1 + 1 =3 outcome on the bottom
line
Answer:b

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DIWAKAR EDUCATION HUB

AS PER NEW UPDATED SYLLABUS

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Answ er - (c) Answ er - (c)

(a) Going concern (a) Compound entry

Answ er - (d) Answ er - (a)

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Answ er - (a) Answ er - (b)

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(a) Noting (A) The Guest Model

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34. The expertise of human resource

35. _____ refers to the tendency of firms (A) Both A & C

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Answ er - (c) Answ er - (c)

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Answ er - (c) Answ er - (c)

(a) Going concern (a) Compound entry

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(D) iii, vi, vii, viii

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Answer: (A) Answer: (B)

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