REVISION SESSION ON MANAGEMENT p8

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Question: Identify the cost whose curve is U shape.
Options:
(a) Total cost

(b) Average cost
(c) Marginal cost
(d) None of the above
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Correct Option/Answer: (c) Marginal cost
Explanation: The marginal cost is shaped as inverted U. This is so because when the firm
increases its output then total cost and variable cost begins to increase at a diminishing
rate. When the variable cost and total cost reaches its minimum point then the marginal
cost begins to fall.
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Question:
Assertion (A): The relationship between the organization and its members is
contractual in nature.
Reason (R): Organization is an identifiable aggregation of human beings because it
is not only a number of persons gathered at random but it is the organization of
persons who are interrelated.
Codes:
(a) (A) and (R) are true and (R) is the correct explanation of (A)
(b) (A) and (R) are true but (R) is not the correct explanation of (A)
(c) (A) is false, but (R) is true
(d) (A) is true, but (R) is false
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Correct Option/Answer: (b) (A) and (R) are true but (R) is not the correct
explanation of (A)
Explanation: In an organization, the relationship between the organization and its

members is contractual in nature and organization is an identifiable aggregation of
human beings. Both the statements are correct but reason defines the
characteristic of an organization.
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Question: Organization-people inter influence can be seen through______.
Options
(a) Fusion process

(b) Inducement contribution process
(c) Interpersonal behaviour process
(d) Both (a) and (b)
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Correct Option/Answer: (d) Both (a) and (b)
Explanation: According to organization-people inter influence concept, people and

organization interact in such a way that they both influence each other. There are
two process through which influence can be observed namely fusion process and
inducement contribution process.
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Question:
Assertion (A): The shape or construction of the organization can be determined
through the span of management.
Reason (R): The number of subordinates that can be efficiently managed by the
superior is determined under the span of management.
Codes:
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Correct Option/Answer: (a) (A) and (R) are true and (R) is the correct explanation
of (A)
Explanation: Span of management means the number of subordinates that will be

reporting to the superior. It has two implications that are it determines the
complexity of an individual manager’s job and also determines the configuration
of the organization.
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Question: Which of the following is termed as machine theory?
Options:
(a) Classical theory
(b) Modern theory
(c) Human relational approach
(d) Neo classical theory
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Correct Option/Answer: (a) Classical theory
Explanation: According to classical theory of organization, more importance is

given to input-output mediator and minimal importance to facilitating factors of
external environment. In other words, this theory states that humans are different
aspect of an organization as it is a machine. This theory is also known as machine
theory, structural theory, or physiological theory.
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Question: Who is the developer of the fusion process theory of organization?
Options:
(a) Bernard
(b) Herbert Siamon
(c) E.W. Bakke
(d) Arnest Del
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Correct Option/Answer: (c) E.W. Bakke
Explanation: The fusion process theory of organization was developed by E.W

Bakke that is why it is also known as Bakke’s fusion theory of organization. This
theory is based on the importance of combining of individual’s goal with the
organization’s goals.
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Question: Following are the modern theory of organization behaviour EXCEPT:
Options:
1. Fusion process theory

2. Comparative theory
3. Biological theory
4. Contingency theory
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Correct Option/Answer: (d) Contingency theory
Explanation: Modern theory of organization behaviour is based on an integration

of vital aspects of classical theory along with the social and behavioural sciences.
These theories are probabilistic in nature. Modern theory may include fusion
process theory, comparative theory, and biological theory. Contingency theory is
the leadership theory rather than organization behaviour theory.
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Question: Assertion (A): Personality can be defined as the set of some stable traits
which includes one’s feeling, thoughts, and behaviour that remains consistent
over the period of time.
Reason (R): The unique aspects of an individual behaviour are termed as
personality.
Codes:
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Correct Option/Answer: (b) (A) and (R) are true but (R) is not the correct
explanation of (A)
Explanation: Everyone has some stable traits that define their feelings, thoughts
and behaviour which remains unchanged throughout the time is regarded as
personality. Everyone’s personality is different and everyone possesses some
unique traits.
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Question: Which of the following is NOT the physical determinant of
personality?
Options:
(a) Height
(b) Beauty
(c) Brain
(d) Health status
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Correct Option/Answer: (c) Brain
Explanation: Personality refers to the set of some consistent characteristics that

includes one’s feeling, thoughts and behaviour that remains stable over the period
of time. The physical determinants of personality may include:
1. Height
2. Colour
3. Beauty
4. Health status
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Question:
Assertion (A): Attitude refers to the constant propensity to feel and behave in
specific way towards an object.
Reason (R): There is only one component that comprises the attitude namely
emotional attitude.
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Correct Option/Answer: (d) (A) is true, but (R) is false
Explanation: Attitude refers to the constant propensity to feel and behave in

specific way towards an object. Attitude of a person may vary according to the
object. There are three component that comprises the attitude namely emotional
attitude, cognitive component, and behavioural component.
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Question: Following are the theories of attitude formation EXCEPT:
Options:
(a) Social judgement theory

(b) Cognitive consistency theory
(c) Functional theory
(d) Situational theory
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Correct Option/Answer: (d) Situational theory
Explanation: Attitude refers to the feeling and thoughts about people, things, and
situations. There are various attitude formation theories namely cognitive
consistency theory, functional theory of attitude formation and social judgement
theory. Situational theory is a leadership theory rather than attitude formation
theory.
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Question:
Assertion (A): The approach that lays emphasis on the industrial peace through
collective bargaining, strong trade union, and without help of outside assistance is
regarded as Giri approach.
Reason (R): This approach was given by Laffel who suggested focusing on mutual
settlement of disputes.
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Explanation: The Giri approach was given by V.V. Giri who was a labour minister
first and then became president of India. This approach lays emphasis on the
industrial peace through collective bargaining, strong trade union, and without
help of outside assistance.
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Question: Identify the non-quantitative technique used for job
evaluation.
Options:
(a) Point system

(b) Ranking method
(c) Both (a) and (b)
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Correct Option/Answer: (c) Both (a) and (b)
Explanation: Job evaluation is the process through which jobs are classified as per
their position in the hierarchy. This is done by measuring the relative worth of the
job in relation with others. Non quantitative methods used in job evaluation may
include point system, grading method, ranking method, etc.
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Question:
Assertion (A): Trade unionism is regarded as an extension of democracy from
political scenario to the industrial scenario as per Webb’s theory of industrial
democracy.
Reason (R): This theory is also known as non-revolutionary theory of Webb.
Codes:
(a) (A) and (R) are true
(b) (A) and (R) are false
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Correct Option/Answer: (a) (A) and (R) are true
Explanation: Trade unionism is regarded as an extension of democracy from

political scenario to the industrial scenario as per Webb’s theory of industrial
democracy. This theory is also known as non-revolutionary theory of Webb.
Collective bargaining is given importance that may strengthen the labours as per
Webb.
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Question: Which of the following are the objectives of the trade
union?
Options:
(a) Safeguarding organizational health

(b) Labour welfare
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Explanation: Trade union has various objectives such as fair wages and salaries,
proper working conditions, better employee and employer relations, personnel
policies, negotiating machinery, labour welfare, safeguarding organizational
health, to maintain discipline, etc.
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Question:
Assertion (A): Traditional approach of performance evaluation is a highly
systematic approach that considers the measurement of employee traits along
with their contribution.
Reason (R): The employees as per this approach are rated in similar manner using
the similar approach which allows comparison of personnel rating separately.
Codes:
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of (A)
Explanation: Traditional approach of performance evaluation is a highly systematic

approach that considers the measurement of employee traits along with their
contribution. The employees as per this approach are rated in similar manner
using the similar approach which allows comparison of personnel rating
separately.
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Question: BARS stands for __________.
Options:
(a) Behavioural Average Rating Scale

(b) Better Applied Rating Scales
(c) Before Anchored Rating Scales
(d) Behaviourally Anchored Rating Scale
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Correct Option/Answer: (d) Behaviourally Anchored Rating Scale
Explanation: BARS is an acronym used for Behaviourally Anchored Rating Scale

which is a modern method of performance appraisal. The steps involved in this
method are as follows:
1. Generate critical incidents
2. Create performance dimensions
3. Reallocate incidents
4. Scale of incidents
5. Build final instrument
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Question:
Assertion (A): Job rotation is the way of training peoples to develop different
skills. In this one person is shifted from one job to another.
Reason (R): Job rotation is one of the off the job training method used to develop
more skills.
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Explanation: Job rotation is the way of training peoples to develop different skills.
In this one person is shifted from one job to another. This method is one of the
on-the-job training methods. This method is used for employees of general
management positions so that problems of others can be understand while
working at that place.
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Question: Identify the challenges faced by the recruiter.
Options:
(a) Human resource planning

(b) Uncertain environment
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Correct Option/Answer: (b) Uncertain environment
Explanation: The recruitment is the process of inviting applications for the jobs.
The recruiter faces many challenges while recruiting and selecting an employee.
The number of employees is to be forecasted efficiently on which recruitment is
based. Other challenges faced by recruiters include organization policies, recruiter
habits, uncertain environment, etc.
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Question:
Assertion (A): Econometric models can be used for human resource planning
which is based on the analysis of past statistical data.
Reason (R): This is an easiest way to forecast the human resource requirement
and generally suitable for small organizations.
Codes:
(a) (A) and (R) are true
(b) (A) and (R) are false
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Explanation: Econometric models can be used for human resource planning which
is based on the analysis of past statistical data. This is very complex model which
is usually used in large organization for the purpose of identifying the human
resource requirement.
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Question: Determine the correct statement/statements.
1. National federations and federations of union are two types of organization to
which trade union are affiliated.
2. Case studies method was first developed by Christopher Langdell.
3. Vestibule training method is an example of simulation training method.
4. The statement of job analysis is provided under job description.
Codes:
(a) Statement 1 and 2

(b) Statement 1, 2, and 3
(c) Statement 1, 3 and 4
(d) Statement 1, 2, 3 and 4
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Correct Option/Answer: (d) Statement 1, 2, 3 and 4
Explanation: There are two types of organizations to which trade unions are
affiliated namely National federation and federation of union. Case study method
is a type of training method which was first developed by Christopher Langdell.
Vestibule training method is an example of simulation training method. The
statement of job analysis is provided under the job description.
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Question: Who developed the Z-score model for predicting the bankruptcy and
measuring the financial health of an organization?
Options:
(a) Edmund Phelps

(b) Edward Altman
(c) Robert John
(d) William Sharpe
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Correct Option/Answer (b) Edward Altman
Explanation: The Z-score model is based on numerical measurement which helps

in predicting the chances that the organization will become bankrupt in next
coming years. This model was developed by Edward I. Altman in the year 1968.
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Question: Which of the following is NOT a principle of capital
structure?
Options:
(a) Risk principles

(b) Cost principles
(c) Control principles
(d) Return principles
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Correct Option/Answer: (d) Return principles
Explanation: Capital structure of every organization is different as they use

different sources for procuring funds. It is the mix of equity shares, preference
shares and debenture. The capital structure is based on various principles such as
cost principles, risk principles, control principles, flexibility principle and timing
principle.
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Question: __________ are the assets that can be converted into
cash within one year period.
Options:
(a) Intangible assets

(b) Tangible assets
(c) Current assets
(d) Fixed assets
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Correct Option/Answer: (c) Current assets
Explanation: Assets can be broadly classified as current assets and fixed assets.
The assets that can be converted into cash easily within a year are known as
current assets. The assets that need to be kept for five years or more before
liquidating are regarded as fixed assets.
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Question: Which of the following is the correct way to compute payback period
of the non-uniform cash flows?
Options:
(a) Use average cash flows

(b) Cumulative form is used
(c) Take first year cash flow as the base and consider the same for the whole life
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Correct Option/Answer: (b) Cumulative form is used
Explanation: Payback period method is the project evaluation method in which

the period till which the investment amount can be recoup is computed. For even
cash flows, payback period can be calculated as initial investment divided by the
annual cash flows. In uneven cash flows cumulative form is used.
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Question: Which of the following can be defined as the expected rate of return if
bonds are purchased at current price and held till maturity?
Options:
(a) Current yield

(b) Yield to maturity
(c) Coupon payment
(d) Capital gain
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Correct Option/Answer: (b) Yield to maturity
Explanation: Bonds are the debt instruments used by the borrowers to raise funds
from investors. Generally, bonds are issued by the government at the fixed
interest rate and maturity period. The yield that an investor earns for holding such
bonds till maturity is called as yield to maturity
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Question: Match the items in list 1 with the items in list 2 and select the code of
correct matching:
List 1 List 2
Options: (A) Debt instrument (i) Intangible asset
(B) Shareholder’s capital (ii) Agreement
(C) Goodwill (iii) Bonds
(D) Lease (iv) Equity shares
Codes:
A B C D
(a) iv iii ii i
(b) i ii iii iv
(c) ii i iv iii
(d) iii iv i ii
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Correct Option/Answer: (d) iii iv i ii
Explanation:
List 1 contains some accounting and financial terms whereas list 2

contains its type. For instance, bond is the type of debt instrument,
equity shares comprises the shareholder’s capital, goodwill is the
example of intangible asset and lease is a type of an agreement
between lessor and lessee.
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Question: Incremental _________ are evaluated in the proper
capital budgeting analysis.
Options:
(a) Profits
(b) Cash flows
(c) Sales
(d) Production
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Correct Option/Answer: (b) Cash flows
Explanation: In the capital budgeting process, the investment proposal is

evaluated based on the annual cash flows or incremental cash flows. The
investment proposal should be accepted if the cash flows are higher than the
initial cost after discounting the cash flows over the time period.
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Question: The process of retaining profit year after year and using
the amount in the business for more profit generation is called
_______.
Options:
(a) Securitization
(b) Investment
(c) Ploughing back of profit
(d) Trade credit
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Correct Option/Answer: (c) Ploughing back of profit
Explanation: The ploughing back of profit is the method used in financial

management in which the profits earned by the company are not disbursed
among the investors or shareholders in the form of dividend but this is used in the
company for reinvestment purposes.
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Question: In which of the following form liquidity ratios are
expressed?
Options:
(a) Percentage
(b) Rate or time
(c) Pure ratio form
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Correct Option/Answer: (c) Pure ratio form
Explanation: Liquidity ratios are used to analyze the ability of the company to pay
back the amount of investor which was borrowed by them. It includes the current
ratio, quick or acid test ratio, etc. These ratios are represented in the form of pure
ratio. For example, the ideal current ratio is 2:1.
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Question: Following are the factors that affect the payment of
dividend EXCEPT:
Options:
(a) Inflation
(b) Government’s economic policy
(c) Profitability
(d) Political issues
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Correct Option/Answer: (d) Political issues
Explanation: The organization shares the profit among their investors or

shareholders in the form of dividend. The payment of dividend is affected by
various factors such as government’s economic policy, taxation policy, inflation,
availability of liquid resources, age of the company, etc.
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Question: Hedging is the _____ step process.
Options:
(a) two
(b) three
(c) single
(d) four
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Correct Option/Answer: (a) two
Explanation: Hedging is the process by which investors reduce their price risk by
taking position in two markets. They use derivative instruments for hedging
purposes. Hedging is the two-step process because the profit or loss in the cash
position due to changes in price level is countered by changes in the prices of
future contracts.
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Question: Match the items in list 1 with the items in list 2 and select the code of correct
matching:
List 1 List 2
Options: (a) Arbitrage (i) Buy and sell at the same time
(B) Options (ii) Call and put
(C) Merger (iii) Acquires target firm
(D) Securitization (iv) Debt
Codes:
A B C D
(a) iv iii ii i
(b) i ii iii iv
(c) ii i iv iii
(d) iii iv i ii
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Correct Option/Answer: (b) i ii iii iv
Explanation: List 1 contains various strategies whereas list two contains the terms
associated with these strategies. For instance, arbitrage is the strategy where
investors take advantage of price differences for similar items in two different
markets by buying and selling at the same time. There are two types of options
i.e. call and put options. In the merger, target firm is acquired. Securitization of
debt is done to reduce the risk.
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Question: If the NPV of the project A is positive and NPV of the
project B is negative then which project should be accepted or
rejected?
Options:
(a) Accept A, Reject B

(b) Reject A, Accept B
(c) Accept both A and B
(d) Reject both A and B
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Correct Option/Answer: (a) Accept A, Reject B
Explanation: Net present value is used to evaluate investment proposals. If the net
present value of the project is zero or greater than zero then the project is
acceptable. If the value of NPV is lower than zero then the proposal should be
rejected.
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Question:
Assertion (A): The amount of inventory that should be ordered at a time to reduce
the annual inventory cost is referred to as economic order quantity.
Reason (R): It can be determined by considering the ordering cost of inventory
and holding or carrying cost of inventory.
Codes:
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Correct Option/Answer: (a) (A) and (R) are true and (R) is the
correct explanation of (A)
Explanation: EOQ is the amount of inventory that should be ordered at a time to

reduce the annual inventory cost. It can be determined by considering the
ordering cost of inventory and holding or carrying the cost of inventory. The
expression for computing EOQ is as follows:
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Question: Which of the following is also known as the tax based
theory of capital structure?
Options:
(a) Static trade-off theory

(b) Agency cost theory
(c) Pecking order theory
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Correct Option/Answer: (a) Static trade-off theory
Explanation: Capital structure refers to the mixture of securities used by a

company. There are three conflicting theories of capital structure i.e. static trade-
off theory, agency cost theory of capital structure, and pecking order theory. Static
trade-off theory is also referred as tax-based theory.
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Question: Which of the following is NOT the factor that determines
the working capital requirement?
Options:
(a) Size of the firm

(b) Nature of the firm
(c) Organization’s design
(d) Credit policy
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Correct Option/Answer: (c) Organization’s design
Explanation: Working capital is the capital that is used for making day to day
payments such as raw material, wages, rent, etc. The factors that affect the
working capital requirement are the nature and size of the firm, credit policy,
seasonal variations, production policy, rate of stock turnover, etc.
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Question: A bond should be bought by the investor if _________.
Options:
(a) Intrinsic value is greater than market value

(b) Market value is greater than intrinsic value
(c) Intrinsic value is equal to market value
(d) Redemption value is equal to market value
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Correct Option/Answer: (a) Intrinsic value is greater than market
value
Explanation: A bond is purchased at the market value and investor will receive a
coupon payment which is fixed in nature. The intrinsic value is the present value
of expected future cash flow. If the intrinsic value is greater than the market value
then the investor should purchase the bond.
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Question: Which of the following is NOT traded on Indian stock
market?
Options:
(a) Call option

(b) Forward contract
(c) Futures
(d) Put option
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Correct Option/Answer: (b) Forward contract
Explanation: Indian stock market is regulated by Securities Exchange Board of

India. All the derivative instruments are traded on the stock exchange market in
India except forward contracts. Forward contracts are traded in an unorganized
market.
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Question: Which of the following is referred to as the process
where all the functions determine their need of cost and starts
with zero base?
Options:
(a) Activity based budgeting

(b) Incremental budgeting
(c) Zero based budgeting
(d) Value based budgeting
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Correct Option/Answer: (c) Zero based budgeting
Explanation: The process which begins without considering the past performance
and information and estimates the production quantity and prepares the budget
is referred to as zero based budgeting. These budgets are prepared by each
functional department according to their requirements.
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Question: Who invented the DuPont formula?
Options:
(a) Donaldson Brown

(b) Michell Brown
(c) Robert John
(d) V. DuPont
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Correct Option/Answer: (a) Donaldson Brown
Explanation: DuPont analysis is used to determine the components

of the firm which are contributing the return on equity. The DuPont
formula was invented by Donaldson Brown in the year 1912 who
was the salesman in DuPont Corporation.
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Question:
Assertion (A): Sales promotion is one of the promotional mix tool which uses
various tools to encourage the quicker or maximum purchase of specific product
and services by consumer.
Reason (R): Promotional tools may include coupons, cash refund offers, free trials,
warranties, gifts, discounts, etc.
Codes:
(b) (A) and (R) are true but ® is not the correct explanation of (A)
WATSAAP OR TELEGRAM
or VISHALLIVE
of (A)
Explanation: Sales promotion aims to enhance current sales by using various

promotional tools. The sales manager stimulate the quicker and greater purchase
of the product by the consumer by offering prizes, discounts, gifts, sample,
coupon,, cash refund offers, etc.
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or VISHALLIVE
Question: Which of the following is/are NOT on-line marketing barriers?
Options:
(a) Infrastructural barriers

(b) Security concerns
(c) Low awareness
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or VISHALLIVE
Correct Option/Answer: (d) None of the above
Explanation: Barriers are the hindrances due to which the success of online
marketing hinders. This is because of various reasons. Some of these may include
infrastructural barriers, security concerns, customers restrictions, lack of
availability of skills, funds and technology, etc.
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or VISHALLIVE
Question: Which of the following is also known as channel of distribution?
Options:
(a) Path distribution

(b) Trade channel
(c) Common channel
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or VISHALLIVE
Correct Option/Answer: (b) Trade channel
Explanation: Channel of distribution refers to the channel or medium through

which goods and service produced are delivered to the final customers. There are
various intermediaries involved to deliver the goods to the final consumer. It is
also known as a trade channel.
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or VISHALLIVE
Question: Faulty translations are a type of __________ barrier.
Options:
(a) Semantic barrier
(b) Personal barrier
(c) Psychological barrier
(d) Organizational barrier
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or VISHALLIVE
Correct Option/Answer: (a) Semantic
Explanation: Semantic barriers is one of the communication barriers.

It is the distortion in the communication process due to different
meanings of words. The semantic barrier is also known as the
language barrier.
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or VISHALLIVE
Question: Which of the following models is based on information
theory?
Options:
(a) Shannon weaver model
(b) Porter’s model
(c) Action research model
(d) Berio Model
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or VISHALLIVE
Correct Option/Answer: (a) Shannon weaver model
Explanation: The Shannon weaver model is a communication model

that is based on information theory. This model states that there are
six concepts due to which the communication process gets affected.
These six concepts include sender, encoder, channel, noise, decoder,
and receiver.
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or VISHALLIVE
Question:
Assertion (A): A fully developed theory of organization is put
forward by scientific management.
Reason (R): This theory addressed itself to the trouble of the shop
floor.
Codes:
(a) (A) and (R) are true and (R) is the correct explanation of (A).
(b) (A) and (R) are true but (R) is not the correct explanation of (A).
(c) (A) is false, but (R) is true.
(d) (A) is true, but (R) is false.
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Correct Option/Answer: (c) (A) is false, but (R) is true.
Explanation: The scientific management theory is not a fully

developed theory, as its main concern is to perform the tasks which
are at the production floor or at the operative level.
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or VISHALLIVE
Question: Which of the following is Maddi’s model?
Options:
(a) Controlling model
(b) Communication model
(c) Personality model
(d) Psychology model
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or VISHALLIVE
Correct Option/Answer: (c) Personality model
Explanation: Maddi’s model is a personality model where it is

suggested to increase thinking rather than memorizing the things as
it is.
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or VISHALLIVE
Question:
Assertion (A): The terms manager and leader can be used in place of
each other.
Reason (R): Leadership is considered as a sub-class of management.
Codes:
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or VISHALLIVE
Correct Option/Answer: (d) (A) is true, but (R) is false.
Explanation: The terms manager and leader can be used in place of

each other. It means the manager always have leadership quality in
order to achieve the target of the company and manager is capable
to assign the work among its subordinates. That is why the manager
is also known as the leader of the company. Leadership is a part of
directing and directing is a type of management.
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or VISHALLIVE
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or VISHALLIVE
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or VISHALLIVE
Question: Which of the following models is developed for
personnel forecasting, which is based on selected key variables
which affect the overall human resource need of an organization?
Options:
(a) Econometric model
(b) Delphi technique
(c) Bureks-Smith model
(d) Simulation model
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or VISHALLIVE
Correct Option/Answer: (c) Bureks-Smith model
Explanation: The Bureks-Smith model is a mathematical model

which is based on selected key variables which affect the overall
human resource need of an organization. The expression for this
model is as follows:
1
 Lagg  G 
En  X
Y
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or VISHALLIVE
Question:
Assertion (A): In human resource planning, training is given to
improve the present skills of an employee.
Reason (R): Development is the process that is future-oriented.

Codes:
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or VISHALLIVE
Explanation: Training is given to lower-level employees whereas

development is given to upper management. The first sentence tells
about the training whereas the second sentence talks about the
development. Therefore, the second sentence is the correct
explanation of first sentence.
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or VISHALLIVE
Question: Match the items in list 1 with the items in list 2 and select
the code of correct matching: List 1 List 2
Options: (a)Selection (i) Test
(B) Job satisfaction (ii) Achievement
(C) Trade union (iii) Hind
Codes: Mazdoor Sabha
A B C D (D) Wages and salary (iv) Halsey plan
administration
(a) iv iii ii i
(b) i ii iii iv
(c) ii i iv iii
(d) iii iv i ii
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or VISHALLIVE
Correct Option/Answer: (b) i ii iii iv
List 1 List 2
(a) Selection (i) Test
(B) Job satisfaction (ii) Achievement
(C) Trade union (iii) Hind mazdoor sabha
(D) Wages and salary administration (iv) Halsey plan

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Question:
Assertion (A): The job profile is defined in the job description.
Reason (R): The requirement of human skills to do the job as

mentioned in the job profile is known as job specification.
Codes:
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or VISHALLIVE
Explanation: The job description defines what should be performed

whereas job specification defines the skills required to perform that
job. Therefore, both the sentences are correct and (R) is the correct
explanation of (A).
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or VISHALLIVE
Question: The Conventional Method of Human Relations Training
includes_______.
Options:
(a) Case study method
(b) Lectures
(c) Incident Method
(d) All of the above
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or VISHALLIVE
Correct Option/Answer: (d) All of the above
Explanation: The conventional method of human relations training

includes lectures, discussions, conference training, case study
method, incident method, and coaching method. On the other hand,
modern methods of human relation training include role-playing,
laboratory training, gaming, and sensitivity training.
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or VISHALLIVE
Question: Which of the following is NOT a theory of labour
movement?
Options:
(a) Socio-psychological theory

(b) Modern theory
(c) Industrial democracy
(d) Donovan approach
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or VISHALLIVE
Correct Option/Answer: (d) Donovan approach
Explanation: Donovan’s approach is the approach to

industrial relations using which industrial disputes and
conflicts can be resolved.
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or VISHALLIVE
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or VISHALLIVE
WATSAAP OR TELEGRAM
or VISHALLIVE
Question:
Assertion (A): For human resource management, performance
appraisal is a critical task.
Reason (R): The aim of performance appraisal is obtaining an
accurate picture of the past and future performance.
Codes:
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or VISHALLIVE
correct explanation of (A).
Explanation: Performance appraisal is a difficult task to be

performed for every employee in which their past performance is
evaluated and future performance is the judge.
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or VISHALLIVE
Question: __________ is a management approach for loss.
Options:
(a) TQM
(b) FSN
(c) ABC
(d) VED
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or VISHALLIVE
Correct Option/Answer: (a) TQM
Explanation: TQM is an abbreviation for total quality management

which is used by the management to control or minimize the losses.
The rest of the options are inventory management techniques such
as Fast, slow and non-moving inventory (FSN), ABC analysis, Value,
essential and desires items.
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or VISHALLIVE
Question: Determine the correct order of the capital budgeting process
1. Project selection
2. Project evaluation
3. Project execution
4. Project generation
Options:
(a) 4 2 1 3
(b) 3 1 2 4
(c) 2 3 4 1
(d) 1 4 3 2
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or VISHALLIVE
Correct Option/Answer: (a) 4 2 1 3
Explanation: In the capital budgeting process, the first step is project

generation, the second project is selected, the third project is
evaluation, the fourth project is executed and the last is follow up.
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or VISHALLIVE
Question: Which of the following is NOT a type of leverage?
Options:
(a) Capital leverage
(b) Operating leverage
(c) Financial leverage
(d) Combined leverage
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or VISHALLIVE
Correct Option/Answer: (a) Capital leverage
Explanation: There are three types of leverage i.e. operating

leverage, financial leverage and combined leverage. Operating
leverage is related to the investments of the organization. Financial
leverage is related to the debt and equity or capital structure of the
firm, and combined leverage is related to both the investments and
capital structure of the firm.
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or VISHALLIVE
Question: __________ is the principal amount of the bond at
which the coupon rate is applied.
Options:
(a) Par value

(b) Present value
(c) Coupon payment
(d) Discounted value
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or VISHALLIVE
Correct Option/Answer: (a) Par value
Explanation: Par value is also known as the face value of the bond or
future value at which bond investors will get coupon payments as
per the coupon rate.
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or VISHALLIVE
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or VISHALLIVE
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or VISHALLIVE
Question: __________ is the ratio of riskless cash flow to the risky
cash flow.
Options:
(a) Risk-adjusted discount rate
(b) Certainty equivalent coefficient
(c) The risky cash flow ratio
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or VISHALLIVE
Correct Option/Answer: (b) Certainty equivalent coefficient
Explanation: Certainty equivalent coefficient is a method of

accounting for risk where expected cash flows are reduced by a
certain amount. This can be computed by dividing risky cash flow
from riskless cash flow.
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or VISHALLIVE
Question: Which of the following involves the design,
development, and implementation of new financial instruments
and processes for solving finance problems?
Options:
(a) Financial analysis

(b) Financial engineering
(c) Financial development
(d) Financial management
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or VISHALLIVE
Correct Option/Answer: (b) Financial engineering
Explanation: Financial engineering is the process that involves

designing, development and implementation of innovative
instruments and processes to solve financial problems
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or VISHALLIVE
Question: In which of the following methods, the present value of
cash outflow is equal to the present value of cash inflow?
Options:
(a) Net present value method

(b) Internal rate of return method
(c) Average return method
(d) Payback period method
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or VISHALLIVE
Correct Option/Answer: (b) Internal rate of return method
Explanation: The internal rate of return method is the method used

by investors while making an investment decision. The internal rate
of return is the expected rate which an investor expects from the
investment made.
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or VISHALLIVE
Question:
Assertion (A): There exists a limited liability of the shareholders in a private
company.
Reason (R): In a private limited company, the number of shareholders is limited to
fifty.
Codes:
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or VISHALLIVE
Correct Option/Answer:(d) (A) is true, but (R) is false.
Explanation: The shareholders possess limited liability (limited to the

amount) in a private company. The company may possess a limited
number of shareholders. There may be a maximum 200
shareholders in a private limited company.
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or VISHALLIVE
Question: __________ is also known as debt capital.
Options:
(a) Ownership securities

(b) Creditorship securities
(c) Factorships
(d) Debenture ship
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or VISHALLIVE
Correct Option/Answer: (b) Creditorship securities
Explanation: Creditorship securities include debentures and bonds.

The creditorship securities are also known as debt capital.
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or VISHALLIVE
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or VISHALLIVE
Correct Option/Answer: (c) b
Explanation: The given formula is Gordon’s formula that is used to

calculate the market value of shares. In this formula, b represents
the retention ratio or percentage of retained earnings.
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or VISHALLIVE
Question: CAPM model is an extension of __________ theory.
Options:
(a) Markowitz portfolio theory
(b) Arbitrage pricing theory
(c) Optimal portfolio theory
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or VISHALLIVE
Correct Option/Answer: (a) Markowitz portfolio theory
Explanation: W. Sharpe, John, Linther and Jan Mossin developed

capital asset pricing model which is an extension of Markowitz
portfolio theory. This theory reflects the relationship between the
risk and return of securities portfolio in capital market.
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or VISHALLIVE
Question: Each portfolio is subjected to some variability that
cannot be eliminated. Determine the risk which is undiversifiable.
Options:
(a) Market risk

(b) Systematic risk
(c) Unsystematic risk
(d) Both (a) and (b)
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or VISHALLIVE
Correct Option/Answer: (d) Both (a) and (b)
Explanation: The unsystematic risk is the risk associated only with

the securities in a portfolio. Therefore, this risk can be minimized by
creating an appropriate portfolio. The market risk or systematic risk
is the risk imposed on every industry equally due to various external
factors such as a change in government policies. Thus, this risk is
undiversifiable
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or VISHALLIVE
Question: Who developed the Arbitrage Pricing Theory?
Options:
(a) Stephen Ross

(b) John Linter
(c) Jan Mossin
(d) William Sharpe
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or VISHALLIVE
Correct Option/Answer: (a) Stephen Ross
Explanation: The Arbitrage Pricing Theory was developed by Stephen

Ross to address the deficiency in the Capital asset pricing model. He
gave this model in the mid-1970s. The other authors together
developed the CAPM model.
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or VISHALLIVE
Question: Which of the following models is also known as Gordon’s
share valuation model?
(a) Constant growth model

(b) Multiple growth models
(c) One year holding period
(d) Multiple years holding periods
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or VISHALLIVE
Correct Option/Answer: (a) Constant growth model
Explanation: The model is based on the assumption that the

dividend will increase at similar rates into the indefinite future. It
also assumes that the discount rate is greater than the dividend
growth rate.
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or VISHALLIVE
Question: The motives of holding cash includes_______.
Options:
(a) Transaction motive

(b) Precautionary motive
(c) Speculative motive
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or VISHALLIVE
Explanation: Cash is required for three purposes i.e. transactions

motive such as for buying raw material, precautionary motive such
as cash for meeting requirements due to change in demand, and
supply or speculative motive which means that cash is required to
gain returns due to the prices fluctuations in the market.
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or VISHALLIVE
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or VISHALLIVE
Market Value  Book Value
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REFERRALCODE:
2 @7007993387
or VISHALLIVE
Question: Match the items in list 1 with the items in list 2 and
select the code of correct matching:
List 1 List 2
Options: (a) Economic (i) The value provided in

Value the balance sheet
Codes: (B) Fair Value (ii) Net Assets is the
A B C D difference
between the assets and
(a) iv iii ii i depreciation
(C) Intrinsic
(b) i ii iii iv Value (iii)
(c) ii i iv iii
(D) Book (iv) Present Value
(d) iii iv i ii Value
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or VISHALLIVE
Correct Option/Answer: (a) iv iii ii i
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or VISHALLIVE
Question: Which of the following theories is also known as
information asymmetry theory?
Options:
(a) Pecking order theory

(b) Agency cost theory
(c) Static trade-off theory
(d) MM theory
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or VISHALLIVE
Correct Option/Answer: (a) Pecking order theory
Explanation: The Myers proposed pecking order theory which says

that the firms prefer to make a new investment, firstly with retained
earnings, then with debt and lastly with equity. This theory is also
known as information asymmetry theory.
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or VISHALLIVE
Question: The Bird-in-the-Hand theory is a _______.
Options:
(a) capital structure theory
(b) dividend theory
(c) trade theory
(d) investment theory
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or VISHALLIVE
Correct Option/Answer: (b) Dividend theory
Explanation: The Bird-In-The-Hand theory is a dividend theory which

states that shareholders prefer to receive dividends rather than
believing in future gains.
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or VISHALLIVE
Question: Hedging means _______.
Options:
(a) inspecting
(b) speculating
(c) reducing risk
(d) reducing cost
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or VISHALLIVE
Correct Option/Answer: (c) Reducing risk
Explanation: Hedging is a process which helps in reducing risk. The

investors take positions in two different markets to reduce the risk.
This is also known as two-step process.
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or VISHALLIVE
Question: Identify the factors on which the legal environment
depends.
Options:
(a) Ecology
(b) Tax rates
(c) Sectoral protection
(d) Consumption expenditure
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or VISHALLIVE
Correct Option/Answer: (c) Sectoral protection
Explanation: Every business has to understand legal provisions to

operate under legal environment. The legal environment depends
on corporate affairs, employee and consumer protection, sectoral
protection, and corporate and societal protection.
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or VISHALLIVE
Question: Which of the following is the part of the product which
provides the information about the product?
Options:
(a) Name or Brand
(b) Trademark
(c) Label
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or VISHALLIVE
Correct Option/Answer: (c) Label
Explanation: Label provides the information about the product to

their users. Information is mentioned on the packet of the product
and it can also be provided through a tag attached to that product.
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or VISHALLIVE
Question: Who has explained the effectiveness of the tight-loose
strategy?
Options:
(a) Tousely and Clark
(b) Peter and Waterman
(c) Clark and Peter
(d) Stanton and Peter
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or VISHALLIVE
Correct Option/Answer: (b) Peter and Waterman
Explanation: The effectiveness of tight-loose strategy was

highlighted by Peter and Waterman. According to this approach, the
strategies should be strictly conveyed whereas the management
must be loosely directed so that it should give discretion in such a
way that objectives can be achieved.
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or VISHALLIVE
Question: Identify the characteristics of a good package.
Options:
(a) The product contents should be protected.

(b) Convenient to handle
(c) It should be economical
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or VISHALLIVE
Explanation: Good package must fulfil following characteristics:

1. It should be able to attract customers.
2. Convenient to handle
3. Must protect the product contents
4. It should be economical
5. Uniqueness
6. Must be eco-friendly
7. Should occupy less space
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or VISHALLIVE
Question: Idea generation is the first stage in _______.
Options:
(a) Product development

(b) Research methodology
(c)Test marketing
(d) Branding
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or VISHALLIVE
Correct Option/Answer: (a) Product development
Explanation: Development of new product is to produce a new product within the

company to meet the recently identified demand of the customer. The process of
product development begins with the idea generation about new products.
Commercialization is the last step in the product development process.
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or VISHALLIVE
Question: Identify the factors affecting light industries.
Options:
(a) Availability of skilled workers

(b) Labour pool
(c)Government regulations
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or VISHALLIVE
Explanation:The facilities can be classified as heavy manufacturing, light

industries, warehouses and distribution centres and retail and service. The light
industries are perceived to be smaller than heavy manufacturing and get affected
by various factors such as labour pool, availability of skilled workers, government
regulations. Environmental issues are considered less important in these types of
industries.
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or VISHALLIVE
Question: Management effectiveness can be analysed through_______.
Options:
(a) Fei-Ranis model

(b) Negandhi Estafen model
(c) Kaldor’s model
(d) Rostow’s model
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or VISHALLIVE
Correct Option/Answer: (b) Negandhi Estafen model
Explanation: Negandhi Estafen model was developed by Negandhi and B.D.

Estafen. The Negandhi and Estafen model is perceived as one of the good model
for management effectiveness analysis purposes. The other models are growth
models used for different purposes.
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or VISHALLIVE
Question: Assertion (A): Least costly facilities are generally required in the
operations of retail and service type of facilities.
Reason (R):Retail facilities may include the facilities that prepare stereos.
Options:
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or VISHALLIVE
Explanation:Retail and service is the type of production facilities which usually

requires least cost in its operations. Retail facilities may include groceries,
departmental stores whereas service facilities may include restaurants, banks,
clinics, etc.
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or VISHALLIVE
Question: SPT is an abbreviation used for ________.
Options:
(a) Starting Process Time

(b) Shortest Processing Time
(c) Starting Production Time
(d) Shortest Production Total
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or VISHALLIVE
Correct Option/Answer: (b) Shortest Processing Time
Explanation: SPT is an abbreviation used for Shortest Processing time in

production management. The shortest processing time is the estimated time
which is computed by adding the time either in minutes or hours required to
complete each job in the production process.
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or VISHALLIVE
matching:
List 1 List 2
Options: (A)Monte Carlo method (i) Allocation model
(B) Linear programmes (ii)Derivation of solution
(C) VED analysis (iii)Time values
(D) Synthesis method (iv) Inventory management
Codes:
A B C D
(a) iv iii ii i
(b) i ii iii iv
(c) ii i iv iii
(d) iii iv i ii
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or VISHALLIVE
Correct Option/Answer: (c) ii i iv iii
Explanation:
Monte Carlo method is used for derivation of the solution. Linear programming is
the technique used for resources allocation. VED is an abbreviation for Vital
essential and desirable which is the inventory management technique. Synthesis
method is the work measurement technique which determines the time values by
dividing the job into parts.
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or VISHALLIVE
Question: Who developed the linear decision rule?
Options:
(a) Mr. Coblas

(b) Mr. Iringham
(c) Mr. Holt
(d) Mr. Girham
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or VISHALLIVE
Correct Option/Answer: (c) Mr. Holt
Explanation: Linear decision rule is the mathematical approach which is used in

the production planning process. This rule was developed by Holt in 1960. This
was developed with the purpose to meet the demand of the customer by
reducing the cost of production.
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or VISHALLIVE
Question: In which of the following FNSD techniques is used?
Options:
(a) Transportation model

(b)Inventory management
(c) Quality management
(d) Markov analysis
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or VISHALLIVE
Correct Option/Answer: (b) Inventory management
Explanation: FNSD is an acronym used for Fast moving, Normal moving, slow
moving and Dead items. This is one of the inventory management techniques
under which inventory is classified into these four categories and number of items
are managed accordingly.
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or VISHALLIVE
Question:Which of the following is included in operations research?
Options:
(a) Systems approach

(b) Optimal solution
(c) Scientific method
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or VISHALLIVE
Explanation: Operations research by using quantitative techniques like linear

programming, duality, etc searches the solution for various business problems to
reach optimum solutions. It may include system approach, optimal solution and
scientific methods.
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or VISHALLIVE
Question: Identify the method that is concerned with searching for a better way
of doing work.
Options:
(a) Cost study

(b) Method study
(c) Quality circle
(d) Revenue study
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or VISHALLIVE
Correct Option/Answer: (b) Method study
Explanation: Method study is concerned with the better working as it

systematically records and critically examines the way of doing work to enhance
or improve it.The purpose of method study is to build a more economical method
of work and simplify the work.
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or VISHALLIVE
Question: Which of the following newsvendor models is related to?
Options:
(a) Inventory management

(b) Receivables management
(c) Cash management
(d) Production planning
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or VISHALLIVE
Correct Option/Answer: (a) Inventory management
Explanation: Newsvendor model is also known as newsboy problem or

newsvendor problem. This model is related to inventory management. This model
was developed due to the problems faced by the new paper vendor who were
finding difficulty in estimating the number of copies required.
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or VISHALLIVE
Question:What does a positive correlation mean?
Options:
(a)The two variables will move in opposite directions.

(b)The two variables will move in similar directions.
(c)The two variables have positive values irrespective of directions.
(d)The two variables will have no definite relation
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Correct Option/Answer: (b) The two variables will move in similar directions.
Explanation: The correlation between the two variables may be positive, negative
and no correlation. Positive correlation refers that the two variables will deviate in
a similar direction whereas negative correlation refers that the variables will
deviate in opposite directions and no-correlation refers that the movement of one
variable is irrespective of the other.
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or VISHALLIVE
Question: Identify the utility of chi-squared test.
Options:
(a) To test the association of attributes

(b)To test the significance of difference
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or VISHALLIVE
Explanation: Chi-squared test is the test of significance which was

developed by karl pearson in 1900. The test is considered as one of
the important test among hypothesis testing techniques. This test is
used to test the association of characteristics and attributes and to
test the goodness of fit.
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or VISHALLIVE
Question: Which of the following are the tools used for primary
data collection?
Options:
(a) Telephone
(b) Questionnaire
(c) Observation
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or VISHALLIVE
Explanation: Data collection is the process through which relevant information to

the topic is collected from various sources such as primary sources and secondary
sources. Data collected through primary sources is the first hand data which was
not used previously. It can be gathered by using tools such as telephone,
questionnaire, observation, etc.
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or VISHALLIVE
Question:Identify the rule of a good sample.
Options:
(a) Homogeneous
(b) Adequacy
(c) Truly representative
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or VISHALLIVE
Explanation: Sample refers to the part of population which is selected for specific
study. The good sample is based on various rules. Some of the rules may include
true representation of the population, adequacy or sufficiency, homogeneous,
elementary units selected to be independent.
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or VISHALLIVE
Question: Identify the fastest way of collecting data.
Options:
(a)Telephone
(b) Online
(c) Interview
(d) Questionnaire
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or VISHALLIVE
Correct Option/Answer: (b) Online
Explanation: Data collected through online mode is faster as compared to the data
gathered through other modes such as telephone, online, interview,
questionnaire, etc. This is because the data collected through online mode will
usually takes one to seven days whereas data collected through personal mode
takes more than two weeks.
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or VISHALLIVE
Question: Benchmarks are set by the organization _________.
Options:
(a) to direct employees

(b)to evaluate performance
(c)to communicate
(d)to motivate
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or VISHALLIVE
Correct Option/Answer: (b) to evaluate performance
Explanation: Benchmarking is the process through which performance can be

compared and evaluated. The firm may evaluate the performance on the basis of
set standards and can also compare its performance with the similar company’s or
competitor’s performance.
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or VISHALLIVE
Question:The coefficient of determination lies ________.
Options:
(a) between 1 and 2

(b) between 0 and 1
(c) between 0 and 2
(d) between 1 and -1
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or VISHALLIVE
Correct Option/Answer:(b) between 0 and 1
Explanation: The coefficient of determination is used to identify the variability in

one factor that can be the result of the variability in another factor which is
related to that factor. The coefficient of determination is denoted by R2 or R-
squared whose value lies within 1 and 0.
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or VISHALLIVE
Question: Identify the type of plant layout.
(a) Product layout

(b) Process layout
(c) Stationary layout
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or VISHALLIVE
Explanation: The arrangement of physical facilities such as

machinery, equipment, furniture and other necessities required for
production is referred to as plant layout. There are mainly three
types of plant layout namely, product layout, process layout and
stationary layout.
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or VISHALLIVE
Question: On which of the following project scheduling can be
applied?
Options:
(a) Dam constructions

(b) Ship building
(c) Railway coach building
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or VISHALLIVE
Explanation:Scheduling is the process of planning or arranging the activities to

take place in the estimated time. Scheduling can be done for various time
constraint projects. Some of the examples are dam constructions, ship building
projects, railway coach building, etc.
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or VISHALLIVE
Question: Identify the type of operation management process.
Options:
(a) Transaction process

(b) Transformation process
(c) Translation process
(d) Transparent process
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or VISHALLIVE
Correct Option/Answer: (b) Transformation process
Explanation: Operations management refers to the process of conversion of raw

material and labours into the product or services in an efficient manner as
maximum as possible so that desired objectives of an organization can be
achieved. Therefore, it is the transformation process.
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or VISHALLIVE
Question: Who introduced the 100 percent export-oriented unit?
Options:
(a) World trade organization

(b) External affair ministers
(c) Government of India
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or VISHALLIVE
Correct Option/Answer: (c) Government of India
Explanation:The scheme of 100 percent export-oriented unit was commenced by

the government of India in 1980. The purpose of this scheme was to use it as the
measure to set up growth of our exports in order to fill the trade gap.
WATSAAP OR TELEGRAM
or VISHALLIVE
Question: Which of the following are the advantages of free international trade?
Options:
(a) Production efficiencies

(b) Increased production
(c) Economic growth
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or VISHALLIVE
Explanation: free international trade refers to the trade which occurs across the
countries without any barriers. It is advantageous as it may enhance the
production efficiencies, technological advancement, increased production,
economic growth, foreign exchange gains, etc.
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or VISHALLIVE
Question: Identify the functions of foreign exchange markets
Options:
(a) Credit function

(b) Transfer function
(c) Hedging function
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or VISHALLIVE
Explanation: Foreign exchange market is the place where it is facilitated that the
conversion of one currency into another can take place. The functions of foreign
exchange market may include transfer function, credit function and hedging
function.
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or VISHALLIVE
matching:
List 1 List 2
Options: (A)Question marks (i) Low market share and low market growth
(B)Stars (ii) High market share and low market growth
(C) Cash cows (iii) High market share and high market growth
(D) Dogs (iv) Low market share and high market growth
Codes:
A B C D
(a) iv iii ii i
(b) ii iv i iii
(c) iii i iv ii
(d) i ii iii iv
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or VISHALLIVE
Correct Option/Answer: (a) iv iii ii i
Explanation: The BCG matrix is the product portfolio matrix used in business
strategy which is as follows
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or VISHALLIVE
Question: Organization structure may include________.
Options:
(a) Divisional structure

(b) matrix structure
(c) functional structure
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or VISHALLIVE
Explanation: Organization structure defines the direction of organizational

activities in which they take place to achieve organizational goals. The
organizational structure may include simple structure, matrix structure, divisional
structure, functional structure and strategic business unit strategies.
WATSAAP OR TELEGRAM
or VISHALLIVE
Answer the questions from 86 to 90 on the basis of following case study:
IDA is an acronym used for International Financial Corporation which was
established by the World Bank in20thJuly 1956. The headquarters of IFC is located
in Washington DC, USA. This is the international financial institution which offers
various investment assistance and loan facilities to the less developed countries.
International Financial Corporation organization encourages development of
private sectors. There are currently 184 members’ countries present. The main
objectives of the organization are as follows:
1. It provides loans to the private sector.
2. It coordinates the capital and management.
3. It encourages capitalist countries to invest in developing countries.
The President of the World Bank also serves as the IFC’s president. The vice-
president of the IFC in present is Philippe Le Houérou.
WATSAAP OR TELEGRAM
or VISHALLIVE
Question: Which of the following is NOT the sister organization of the World
Bank?
1. IDA
2. IFC
3. MIGA
4. HDFC
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or VISHALLIVE
Correct Option/Answer: (d) HDFC
Explanation: The World Bank comprises five organizations namely, International

financial corporation, international Development association, International Bank
for reconstruction and development, Multilateral Investment guarantee agency
and international Centre for Settlement of Investment disputes.
WATSAAP OR TELEGRAM
or VISHALLIVE
Question: When International Financial Corporation was established?
Options:
(a) June 20, 1956

(b) July 20, 1960
(c) July 20, 1956
(d) June 20, 1960
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or VISHALLIVE
Correct Option/Answer: (c) July 20, 1956
Explanation: International Financial Corporation was established on

July 20th, in the year 1956. IFC is the sister organization of the World
Bank.
WATSAAP OR TELEGRAM
or VISHALLIVE
Question: Identify the objective of IFC.
Options:
(a) To provide financial assistance to the private sector.

(b) To promote investment in the private sector.
(c) To encourage capitalist countries to invest in less developed countries.
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or VISHALLIVE
Explanation: International financial corporation is the international financial

institution that provides financial support to the developing nations and
encourages capitalist countries to invest in the private sector of less developed
countries.
WATSAAP OR TELEGRAM
or VISHALLIVE
Question: Where IFC is headquartered?
1. Washington D.C., USA

2. New York, USA
3. Geneva, Switzerland
4. Paraguay
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or VISHALLIVE
Correct Option/Answer: (a) Washington D.C., USA
Explanation: As International Financial corporation is one of the institutions of

world bank and world bank is headquartered in Washington D.C. USA, so as the
International Financial corporation.
WATSAAP OR TELEGRAM
or VISHALLIVE
Question: Who is the vice president of IFC?
Options:
(a) Lars Thunell

(b)Philippe Le Houérou.
(c) World Bank’s president
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or VISHALLIVE
Correct Option/Answer: (b) Philippe Le Houérou.
Explanation: The head of the IFC is the World Bank’s president. Currently, the vice
president of the IFC is Philippe Le Houérou.
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or VISHALLIVE
Question: Entrepreneurship is different from _________.
Options:
(a) Innovation
(b) New business ideas
(c) Management
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or VISHALLIVE
Correct Option/Answer: (c) Management
Explanation: Entrepreneurship is the process of initiating a new business with a

new business idea or innovation. Entrepreneurship is different from management
as entrepreneurship is a discontinuous phenomenon whereas management is the
ongoing process of organization’s functions.
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or VISHALLIVE
Question: Technical analysis is used for _________ predictions.
Options:
(a) long-term
(b) medium-term
(c) short-term
(d) both short-term and long-term
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or VISHALLIVE
Correct Option/Answer: (c) short-term
Explanation: Technical analysis is the process where price movement in the

financial market can be predicted based on the historic price or previous data.
This analysis helps investors to make investment decisions which are usually
short-term.
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or VISHALLIVE
Question: Identify the basic issues about which entrepreneurs are
concerned.
Options:
(a) Benefits, sales and costs

(b)Customers, risk and environment
(c) Risk, sales and costs
(d) Environment, sales and costs
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or VISHALLIVE
Correct Option/Answer: (a) Benefits, sales and costs
Explanation: Entrepreneurs are the innovators who take high risk with the
expectation of gaining high returns. Basic concerns of an entrepreneur may
include benefits or revenues earned, sales, and costs of producing goods and
services.
WATSAAP OR TELEGRAM
or VISHALLIVE
Question: Which of the following is/are regarded as an MSME
scheme?
Options:
(a) Credit linked capital subsidy (CLCS)

(b) Assistance to Training Institutions (ATI)
(c) Coir Vikas Yojana
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or VISHALLIVE
Explanation: Under Micro, Small and Medium enterprise (MSME), following

schemes are included to promote them such as Credit linked capital subsidy
(CLCS), Assistance to Training Institutions (ATI), Coir Vikas Yojana, etc.
WATSAAP OR TELEGRAM
or VISHALLIVE
Question:
Assertion (A):The business plan can be used by an entrepreneur for proper
allocation of resources, for handling unexpected problems if arises and to make
effective decisions.
Reason (R):Business plan is the draft which reflects the vision of an entrepreneur.
Codes:
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or VISHALLIVE
of (A)
Explanation: Business plan is the draft which is prepared by an entrepreneur so

that all the actions can be taken effectively without any delay. It reflects the
entrepreneur’s vision. It can be used by an entrepreneur for proper allocation of
resources, for handling unexpected problems if arises and to make effective
decisions.
WATSAAP OR TELEGRAM
or VISHALLIVE
Question: Identify the measure that can be taken to revive sickness of SSI.
Options:
(a) Reservation of items
(b) Lay emphasis on export promotion
(c) Improve money margin scheme
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or VISHALLIVE
Correct Option/Answer: (b) Lay emphasis on export promotion
Explanation: The industry is said to be sick if its accumulated financial losses in

any of the financial years exceed the entire net worth of the industry. The sickness
of small scale industry can be revived if it is encouraged to promote their export.
WATSAAP OR TELEGRAM
or VISHALLIVE
Question: The following are the external forces that affect the
company EXCEPT:
Options:
(a) Sociological forces
(b) Political forces
(c) Competitive forces
(d) Economic forces
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or VISHALLIVE
Correct Option/Answer: (c) Competitive forces
Explanation: Business environment is the surrounding of an environment where it

operates and get influenced by. The forces that influence the business can be
categorized as external forces and internal forces. Internal forces may include
suppliers, competitive forces, etc. The rest of the options given are external
forces.
WATSAAP OR TELEGRAM
or VISHALLIVE
Question: What could be the reasons behind preparing the business plan?
Options:
(a) To assist management in setting goals

(b) To make appropriate decisions
(c) To communicate vision and mission of the company
WATSAAP OR TELEGRAM
or VISHALLIVE
Explanation: Entrepreneur prepares the business plan due to various reasons such
as to attract investors and employees, to convince that the new start-up is worth,
to procure funds from financing institutions, to assist management in setting goals
and guides in long range planning, etc.
WATSAAP OR TELEGRAM
or VISHALLIVE
Question: Mention the issues which are addressed by corporate
governance.
Options:
(a) Ethical issues

(b) Efficiency issues
(c) Accountability issues
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or VISHALLIVE
Explanation: In corporate governance, ethical issues deal with fraudulent

problems, efficiency issues are related with the performance of management and
accountability issues arise due to shareholder’s need about transparency of
management in business operations.
WATSAAP OR TELEGRAM
or VISHALLIVE
Question: The term technical analysis was first introduced by
_________.
Options:
(a) Warren Buffet

(b) Nick Jones
(c) Charles Dow
(d) S. Michell
WATSAAP OR TELEGRAM
or VISHALLIVE
Correct Option/Answer: (c) Charles Dow
Explanation: Technical analysis and fundamental analysis are the methods used
for determining the price movement in future so that appropriate decisions can
be taken now. The term technical analysis was first introduced by Charles Dow in
late 1800.
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or VISHALLIVE
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100 % JRF FOR SURE JUNE 2021

REVISION SESSION ON MANAGEMENT

TARGET- JRF MAY 2021

(a) Total cost

Explanation: In an organization, the relationship between the organization and its

(a) Fusion process

Explanation: According to organization-people inter influence concept, people and

Explanation: Span of management means the number of subordinates that will be

Explanation: According to classical theory of organization, more importance is

Explanation: The fusion process theory of organization was developed by E.W

1. Fusion process theory

Correct Option/Answer: (d) Contingency theory

Explanation: Modern theory of organization behaviour is based on an integration

Explanation: Personality refers to the set of some consistent characteristics that

Explanation: Attitude refers to the constant propensity to feel and behave in

(a) Social judgement theory

(a) Point system

Explanation: Trade unionism is regarded as an extension of democracy from

(a) Safeguarding organizational health

Explanation: Traditional approach of performance evaluation is a highly systematic

(a) Behavioural Average Rating Scale

Explanation: BARS is an acronym used for Behaviourally Anchored Rating Scale

Correct Option/Answer: (d) (A) is true, but (R) is false

(a) Human resource planning

(a) Statement 1 and 2

(a) Edmund Phelps

Explanation: The Z-score model is based on numerical measurement which helps

(a) Risk principles

Explanation: Capital structure of every organization is different as they use

(a) Intangible assets

(a) Use average cash flows

Explanation: Payback period method is the project evaluation method in which

(a) Current yield

List 1 contains some accounting and financial terms whereas list 2

Explanation: In the capital budgeting process, the investment proposal is

Explanation: The ploughing back of profit is the method used in financial

Explanation: The organization shares the profit among their investors or

(a) Accept A, Reject B

Explanation: EOQ is the amount of inventory that should be ordered at a time to

(a) Static trade-off theory

Explanation: Capital structure refers to the mixture of securities used by a

(a) Size of the firm

(a) Intrinsic value is greater than market value

(a) Call option

Explanation: Indian stock market is regulated by Securities Exchange Board of

(a) Activity based budgeting

(a) Donaldson Brown

Explanation: DuPont analysis is used to determine the components

Explanation: Sales promotion aims to enhance current sales by using various

(a) Infrastructural barriers

(a) Path distribution

Explanation: Channel of distribution refers to the channel or medium through

Explanation: Semantic barriers is one of the communication barriers.

Explanation: The Shannon weaver model is a communication model

Explanation: The scientific management theory is not a fully

Explanation: Maddi’s model is a personality model where it is

Explanation: The terms manager and leader can be used in place of

Explanation: The Bureks-Smith model is a mathematical model

Reason (R): Development is the process that is future-oriented.

Explanation: Training is given to lower-level employees whereas

(D) Wages and salary administration (iv) Halsey plan

Reason (R): The requirement of human skills to do the job as

Explanation: The job description defines what should be performed