Sikkim Public Service C om m ission

W ritten E xam ination for the post of C ooperative Inspector and C ooperative A uditor

P A P E R - II B U S IN E S S M A N A G E M E N T
,........T---''im-e-All--o-w-e-d ....•.
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IN S T R U C T IO N S T O C A N D ID A T E S
Read the instructions carefully before answering the questions: -
1. IM M E D IA T E L Y A F T E R T H E C O M M E N C E M E N T O F T H E E X A M IN A T IO N , Y O U S H O U L D
C H E C K T H A T T H IS B O O K L E T D O E S N O T H A V E A N Y U N P R IN T E D , TORN OR
M IS S IN G P A G E S O R IT E M S . IF S O , G E T IT R E P L A C E D B Y A C O M P L E T E T ~ S T
BOOKLET.
2. U se only B lack B all P oint P en to fill the O M R S heet.
3. P lease note that it is the candidate's responsibility to fill in the R oll N um ber carefully
w ithout any om ission or discrepancy at the appropriate places in the O M R A N S W E R
S H E E T as w ell as on S E P A R A T E A N S W E R B O O K L E T for C onventional T ype
Q uestions. A ny om ission/ discrepancy w ill render the A nsw er S heet liable for rejection.
4. D o not w rite anything else on the O M R A nsw er S heet except the required inform ation.
5. T his T est B ooklet is divided into three sections - S ection A (100 m arks), S ection B
(50 m arks) and S ection C (50 m arks).
6. S ection A is M C Q w hich has to be answ ered in the O M R S heet provided to th
candidate. S ection B and S ection C are conventional questions w hich have to be
answ ered in the A nsw er S heet. A ll S ections are C om pulsory.
7. B efore you proceed to m ark in the O M R A nsw er S heet, you have to fill in som e -
particulars as per given instructions. .
8. A fter you have com pleted filling it\ ail yt> ur responses on the O M R A nsw er S heet and
the exam ination has concluded, you should hand over the O M R A nsw er S heet sand the
A nsw er B ooklets to the Invigilator only. Y ou are perm itted to take w ith you the T est
B ooklet.
9. M arking S chem e
T IIE R E W IL B E N E G A T IV E M A R K IN G F O R W R O N G A N S W E R S M A R K E D B Y A
C A N D ID A T E IN 1H E O B E C T V ET Y P E Q U E S T IO N S
(i) T here are four alternatives for the answ er to every question. F or each question for
w hich a w rong answ er has been given by the candidate, one-third of the m arks
assigned to the question w ill be deducted as penalty.
(ii) H a candidate gives m ore than one answ er, it w ill be treated as a w rong answ er
even if one of the given answ ers happens to be correct and there w ill be sam e
penalty as above to the question.
(iii) If a question is left blank. i.e., no answ er is given by the candidate; there w ill be no
penalty for that question.
D O N O T O PE N T H IS T E ST B O O K L E T U N T IL Y O U A R E A SK E D T O D O SO

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 S E C T IO N - A

( M u ltip le C h o ic e Q u e s tio n s )

C h o o s e th e c o r r e c t a n s w e r fo r th e fo llo w in g . E a c h q u e s tio n c a r r ie s 2 m a r k s . (S O x 2 = 1 0 0 )

1. T h e s tr u c tu r e in w h ic h th e r e is s e p a r a tio n o f o w n e r s h ip and m anagem ent

is c a lle d -

A. s o le p r o p r ie to r s h ip
B. P a r tn e r s h ip
C. Com pany

D. A ll b u s in e s s o r g a n iz a tio n s

2. W h a t is th e lim it o f m e m b e r s in c a s e o f a P r iv a te C o m p a n y ?

A. 200
B. 70
C. 100
D. 250

3. C o m m u n ic a tio n is th e o f b u s in e s s .

A. B ackbone

B. L ife lin e

C. N e r v o u s s y s te m

D. B o th A a n d B

4. S u p p ly C h a in M a n a g e m e n t is t~ e m a n a g e m e n t o f w h ic h o f th e fo llo w in g ?

A. R a w M a te r ia ls
B. F lo w o fg o o d s a n d s e r v ic e s '
C. F u lfillm e n t o f o rd e r
D. S a tis fa c tio n o f c u s to m e r

5. If a tr ia l b a la n c e to ta ls d o n o t a g r e e , th e d iffe r e n c e m u s t b e e n te r e d in -

A. P r o fit a n d L o s s A c c o u n t
B. N o m in a l A c c o u n t
C. C a p ita l A c c o u n t

D. S uspense A ccount

6. A h o r iz o n ta l b a r c h a r t th a t s h o w s p r o je c t ta s k s a g a in s t a c a le n d a r is c a lle d :

A. M ile s to n e
B. G oal
C. G a n tt C h a r t
D. P E R TC h a rt

2
 7. T h e c a p ita l th a t is c o n s u m e d by an econom y o r a fir m in th e p r o d u c tio n p r o c e s s is k n o w n as:

A. C a p ita l L o s s
B. P r o d u c tio n C ost
C. D e a d - w e ig h t Loss

D. D e p r e c ia tio n

8. D e m a n d is a fu n c tio n o f:

A. P r ic e
B. F ir m
C. P ro d u c t

D. C ost

9. M a n a g e r ia l E c o n o m ic s is -

A. D e a lin g o n ly w ith m ic r o a s p e c ts
B. O n ly a n o r m a tiv e s c ie n c e
C. D e a lin g w ith p r a c tic a l a s p e c ts
D. A ll o f th e a b o v e

10. T h e m a x im u m v a lu e o f c o r r e la tio n Is -

A. 2
B. 1.5
C. 1
D. 0

11. T h e b a s ic a s s u m p tio n s o f la w o f d e m a n d in c lu d e -

A. P r ic e s o f o th e r g o o d s s h o u ld c h a n g e .
B. T h e r e s h o u ld b e s u b s titu te fo r th e c o m m o d ity .
C. T h e c o m m o d ity s h o u ld n o t c o n fe r a n y d is tin c tio n
D. T h e d e m a n d fo r th e c o m m o d ity s h o u ld n o t b e c o n tin u o u s

12. L ib e r a liz a tio n m eans:

-1 A. P o lic y o f p la n n e d d is in v e s tm e n t
\ B. In te g r a tio n a m o n g e c o n o m ie s
C. E n d o f lic e n s e & r e d u c tio n o f g o v e rn m e n t c o n tr o l
D. N o n e o f th e s e

13. G lo b a liz a tio n d o e s n o t in v o lv e :

A. R e d u c tio n o f b a r r ie r
B. F r e e flo w o f g o o d s & s e r v ic e s
C. G lo b a l m e c h a n is m fo r s e ttle m e n t o f e c o n o m ic d is p u te s
D. F r e e flo w o f c a p ita l

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 14. T h e m is s io n o f t h e is t o e d u c a t e , a d v a n c e a n d p r o m o t e t h e s p e c ia l e v e n t s o f

in d u s t r y a n d it s n e t w o r k o f p r o f e s s io n a ls . a lo n g w it h r e la t e d in d u s t r ie s .
..-
. .

A. CVB
B. IS E S
C. IF E A

D. CMS

15. G e n e r a l a n d I n d u s t r ia l M a n a g e m e n t w a s w r it t e n by-

A. H a r o ld K o o n t z

B. L o u is A lla n
C. T e rry

D. H e n ri F a y o l

16. W h o is t h e f a t h e r o f M o d e r n M a r k e t in g ?

A. P e te r D ru c k e r

B. P h ilip K o t le r
C. L e s te r W u n d e rm a n

D. A b ra h a m M a s lo w

17. T h e te rm m a r k e t in g r e f e r s t o -

A. A d v e r t is in g , S a le s P r o m o t io n , P u b lic it y a n d P u b lic R e la t e d A c t iv it ie s
B. I d e a s , D e v e lo p m e n t s , C o n c e p ts a n d Im p ro v e m e n ts
C. S a le s P la n n in g , S t r a t e g y a n d I m p le m e n t a t io n

D. A P h ilo s o p h y t h a t s t r e s s e s c u s t o m e r v a lu e a n d s a t is f a c t io n

18. I n f in a n c e , t h e r e f e r e h c e t o t h e m a r k e t w h e r e n e w s e c u r it ie s a r e b o u g h t a n d s o ld f o r t h e f ir s t
t im e is _

A. M oney M a rk e t
B. C a p it a l M a r k e t
C. P r im a r y M a r k e t

D. S e c o n d a ry M a rk e t

19. W h a t d o e s A T P s t a n d f o r in S u p p ly C h a in M a n a g e m e n t ?

A. A c q u ir e T r a c k & P e rfo rm

B. A v a ila b le t o P r o m is e
C. A c t iv e T r a n s p o r t P ro to c o l
D. A c c e s s t o P o in t

, ...••... 20. P r o c e s s c o s t in g is s u it a b le f o r -

A. H o s p it a ls
B. O il R e f in in g F ir m s
C. T ra n s p o rt F ir m s

D. B r ic k L a y in g F ir m s

4
21.RQPONMLKJIHGFEDCBA
I n d iv id u a l r e s p o n d e n t s , f o c u s g r o u p s a n d p a n e ls o f r e s p o n d e n t s a r e c a t e g o r iz e d as-

A. P r im a r y D a t a S o u r c e s
B. S e c o n d a ry D a ta S o u rc e s
C. I t e m iz e d D a ta S o u rc e s

D. P o in t e d D a t a S o u r c e s

22. T h e in f o r m a t io n s y s te m u s e d in t h e d a ily r u n n in g o f t h e b u s in e s s is -

A. TPS

B. OPS
C. OAS

D. GPS

23. W h a t is b u y - s id e e -c o m m e rc e ?

A. T h e u s e o f e le c t r o n ic c o m m u n ic a t io n s f o r a ll b u s in e s s p r o c e s s e s
B. A n y e le c t r o n ic a lly m e d ia t e d c o m m u n ic a t io n b e tw e e n a n o r g a n iz a t io n a n d it s

s t a k e h o ld e r s J

C. A n o r g a n iz a t io n u s in g e le c t r o n ic m e d ia t o s e ll d ir e c t ly t o it s c u s t o m e r s

D. A n o r g a n iz a t io n u s in g e le c t r o n ic m e d ia t o p u r c h a s e f r o m it s s u p p lie r s

24. A m in o r c a n b e alan __ .

A. S u re ty

B. Agent

C. P a rtn e r

D. N o n e o f th e s e

25. p r o v id e s in f o r m a t io n o n t h e h u m a n a t t r ib u t e s in t e r m s o f e d u c a t io n , s k ills ,

a p t it u d e s a n d e x p e r ie n c e n e c e s s a ry to p e rfo rm a jo b e f f e c t iv e ly .

A. J o b D e s c r ip t io n

B. J o b S p e c if ic a t io n

C. J o b A n a ly s is

D. J o b E v a lu a t io n

26. O r g a n iz a t io n s tru c tu re p r im a r ily re fe rs to _

A. H o w a c t iv it ie s a r e c o o r d in a t e d & c o n t r o lle d

B. H o w r e s o u r c e s a r e a llo c a t e d

C. T h e lo c a t io n o f d e p a rtm e n t a n d o f f ic e s p a c e

D. T h e p o lic y s t a t e m . e n t s d e v e lo p e d b y t h e f ir m

5
 27. T h e .p u r p o s e o f m a n a g e m e n t a c c o u n tin g is to _

A. H e lp b a n k s m a k e d e c is io n s
B. P a s t o r ie n ta tio n
C. H e lp in v e s to r s m a k e d e c is io n
D. H e lp m a n a g e r s m a k e d e c is io n

.. " -: 28. The concept of m anagem ent b y o b je c tiv e s w a s g iv e n b y ,

'.:'

A. P e te r F . D r u c k e r

B. L u th e r G u lic k
C. R e n s is L ik e r t
:0. B la k e a n d M o u to n

29. A m a n a g e r m a y d e le g a te a n y o f th e ,fo llo w in g e x c e p t, ,

A. A u th o r ity
~ ''''.

B. W o r k lo a d
C. R e s p o n s ib ility
D. N o n e o f th e a b o v e

30. W o r k e r 's fa c ilita tio n c e n te r s s h a ll b e s e t u p b y th e fa c ilita tin g a g e n c y u n d e r th e -

A. P a y m e n t o f B o n u s A c t, 1 9 6 5
B. E q u a l R e m u n e r a tio n A c t, 1 9 7 6
C. F a c to r ie s A c t, 1 9 4 8
D. T h e U n o r g a n iz e d S e c to r W o r k e r s S o c ia l S e c u r ity A c t, 2 0 0 5

31. 1 :h .em o s t im p o r ta n t in fo r m a tio n a m e e tin g p la n n e r c a n d e te r m in e p r io r to a n e v e n t is :

A. P a s t e v e n ts h e ld b y th e g r o u p
B. E x p e c te d a tte n d a n c e
C. The budget
D. G r o u p d e m o g r a p h ic s ,.

32. W h ic h fr o m th e fo llo w in g is N O T a n in ta n g ib le e le m e n t?

A. U tility
B. P u b lic b e n e fit
C. B r a n d r e c o g n itio n
D. G o o d w ill

33. T h e a m o u n t o f c a p ita l m e n tio n e d in M O A is -

, ...•,
A. A u th o r iz e d C a p ita l
B. Is s u e d C a p ita l
C. R e s e r v e C a p ita l
D. S u b s c r ib e d C a p ita l

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34. P r o je c t io n s a n d r e s p o n s e s t o q u e r ie s a r e in f o r m a t io n o u tp u t c h a r a c t e r is t ic s a s s o c ia t e d

w it h ?

A. D e c is io n S u p p o r t S y s t e m ( D S S )

B. M anagem ent I n f o r m a t io n S y s te m (M IS )
C. E x e c u t iv e S u p p o r t S y s t e m ( E 'S S )

D. T r a n s a c t io n P r o c e s s in g S y s t e m ( T P S )

35. W h ic h o f t h e f o llo w in g s h a re s a re re tu rn e d t h e ir c a p it a l a f t e r s o m e s p e c if ie d t im e ?

A. R e d e e m a b le P r e f e r e n c e S h a r e s

B. I r r e d e e m a b le P re fe re n c e S h a re s

C. C u m u la t iv e P re fe re n c e S h a re s

D. P a r t ic ip a t in g P re fe re n c e S h a re s

36. W h ic h o n e o f t h e f o llo w in g is n o t r e la t e d t o B u s in e s s E t h ic s ?

A. E n v ir o n m e n t a l E t h ic s

B. S o c ia l R e s p o n s ib ilit y o f B u s in e s s

C. P r o f it e e r in g

D. E c o lo g ic a l C o n s c io u s n e s s

37. H o w is p r o f it p r io r t o in c o r p o r a t io n tre a te d as?

A. R e v e n u e R e s e rv e

B. S e c re t R e s e rv e

C. C a p it a l R e s e r v e

D. G e n e ra l R e s e rv e

38. The essence of m anagem ent is -

A. P la n n in g

B. O r g a n iz a t io n

C. C o n t r o llin g

D. C o o r d in a t in g

39. S ic k e n t e r p r is e is r e f e r r e d to -

A. W o r ld Bank
B. S ID B I
C. RBI

D. B IF R

7
40.UTSRQPONMLKJIHGFEDCBA
''T h e e n t r e p r e n e u r is m o r e th a n a m a n a g e r. H e /s h e is a n in n o v a t o r a n d p ro m o te r a s w e ll. "

W h o s a id t h is ?

A. G e o r g e G lid e r

B. F o rre s t H . F ra n tz
C. J o s e p h A . S c h u m p e te r

D. P e te rF .D ru c k e r

41. I n w h ic h y e a r w a s th e R e s e r v e B a n k o f I n d ia e s t a b lis h e d ?

A. 1947
B. 1949
C. 1935
D. 1953

42. T h e p o r t io n o f s h a r e c a p it a l w h ic h c a n b e c a lle d u p o n ly o n t h e w in d in g up of a com pany is

know n as-
A. C a lle d u p C a p it a l

B. P a id u p C a p it a l
C. A u t h o r iz e d C a p it a l

D. R e s e r v e C a p it a l

43. W ho is t h e p re s e n t G o v e rn o r o f R B I?

A. S h a k t ik a n t a Das

B. U r jit P a t e l
C. R a g h u r a m R a ja n

D. B im a l J a la n

44. W h ic h o n e o u t o f t h e f o llo w in g is n o t a n I n v e n t o r y v a lu a t io n m e th o d ?

A. F IF O

B. UFO
C. W e ig h t e d A v e ra g e

D. EOQ

45. T h e c o u n try 'w it h h ig h e s t G S T r a t e I n t h e w o r ld is -

A. USA

B. I n d ia

C. C h in a

D. F ra n c e

46. W h o is k n o w n a s " T h e F a t h e r o f S c ie n t if ic M a n a g e m e n t"?

A. H a r o ld K o o n t z

B. H e n ry F a y o l
C. F . W . T a y lo r

D. M ax W eber

8
47. A c c o r d in g to B a la n c e S h e e t e q u a tio n concept.jhe c a p ita l w ill b e -

A. C a p ita l = L ia b ilitie s - A s s e ts
B. C a p ita l = H x e d A s s e ts - C u r r e n t A s s e ts
C. C a p ita l = A s s e ts - L ia b ilitie s '
D. C a p ita l = A s s e ts + L ia b ilitie s

48. W h o w a s a p p o in te d a s C h a ir m a n o f 1 S th F in a n c e C o m m is s io n ( 2 0 2 1 - 2 0 2 5 ) in N o v e m b e r , 2017?

A. A .N . K h u s r o
B. C . R a n g a r a ja n
C. N .K .S in g h

D. Subba Rao

49. Under th e p r ic e is d e te r m in e d b y th e in te r a c tio n o f to ta l dem and a n d to ta l s u p p ly

in th e m a r k e t.

A. P e r fe c t C o m p e titio n
B. M o n o p o ly
C. Im p e r fe c t C o m p e titio n
D. A ll o f th e a b o v e

so. A c c o r d in g to C o m p a n ie s A c t, M in im u m S u b s c r ip tio n h a s b e e n fix e d a t. o f th e is s u e d

a m o u n t.

A. 25%
B. 50%
C. 90%

D. 100%

9
 S E C T IO N - B

Attempt any 5 (five) from Questions 51 to 58. Each question carries 10 marks. (5x10=50)

51. D e fin e M a n a g e m e n t a n d d is c u s s th e im p o r ta n t p r in c ip le s o f M a n a g e m e n t.

52. D is tin g u is h b e tw e e n P r iv a te a n d P u b lic C o m p a n y .

53. itA c o n tr a c t w ith o u t c o n s id e r a tio n is v o id ." C o m m e n t o n th e s ta te m e n t a n d g iv e its e x c e p tio n s .

54. W h a t a r e th e b a r r ie r s o f B u s in e s s C o m m u n ic a tio n ?

55. D is c u s s th e v a r io u s p r in c ip le s o f M a r k e tin g .

56. D e s c r ib e th e v a r io u s fa c to r s a ffe c tin g Dem and.

57. E x p la in in d e ta il th e M a s lo w 's th e o r y o f M o tiv a tio n .

58. D is c u s s th e m a in p r in c ip le s o f B u s in e s s E th ic s .

10
 SECTION-C

Answer any 2 (two) from Questions S9 to 62. Each question carries 2S marks. (2x2S=SO)GFEDCBA

59. W h a t is C o n t r a c t ? " A ll c o n t r a c t s a re agreements b u t a ll a g r e e m e n t s a re n o t c o n tra c ts ."

C o m m e n t w it h s u it a b le a rg u m e n ts .

60. D e f in e B u s in e s s F in a n c e . D is c u s s in d e t a il t h e d if f e r e n t s o u r c e s o f b u s in e s s f in a n c e .

61. W h a t d o y o u m e a n b y T r a in in g & D e v e lo p m e n t ? D is c u s s t h e v a r io u s m e t h o d s a n d t e c h n iq u e s of

t r a in in g & d e v e lo p m e n t ?

62. W h a t is E n t r e p r e n e u r s h ip ? D is c u s s t h e v a r io u s p r o b le m s a n d b a r r ie r s o f E n t r e p r e n e u r s h ip .

****************************************

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