MANAGEMENT

PAPER—II

Note : This paper contains fifty (50) multiple-choice questions, each question carrying
two (2) marks. Attempt all of them.

1. When Average cost (AC) is at its minimum, then :

(A) Marginal cost is equal to Average cost
(B) Marginal cost is less than Average cost
(C) Marginal cost is more than Average cost
(D) None of the above

2. Output under price discrimination will :

(A) Generally be larger than under simple Monopoly
(B) Be indeterminate because, we can not know what prices can be charged
(C) Usually be the same as under perfect competition
(D) Be produced at higher average cost than under simple monopoly

3. The term opportunity cost refers to :

(A) cost related to an optimum level of production
(B) variable cost
(C) short - run cost
(D) cost of one product in terms of production of others forgone

4. When marginal propensity to consumption (MPC) is one, then multiplier value (K) is :
(A) zero (B) one
(C) infinity (D) none of the above

5. Monopolist can decide :

(A) price (B) quantity
(C) both (D) either price or quantity

6. Sometimes your behaviour results in a congruent response from other person. Such
behaviour is referred to as :
(A) perceptual defence (B) perceptual bias
(C) misperception (D) response evocation

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7. The change related phenomenon resisted by the organisations in order to maintain an
equilibrium, is known as :
(A) Conformity to norms (B) Insecurity and regression
(C) Homoeostasis (D) Self-distrust

8. The view that the conflict should be accepted and encouraged, corresponds to which
of the following views :
(A) Traditional view (B) Interactionist view
(C) Behavioural view (D) Both (A) and (C) above

9. A creativity technique based on “the fitting together of diverse elements” principle for
the generation of alternative solutions is referred to as :
(A) Synectics (B) Brain - Storming
(C) Nominal grouping (D) Creative Thinking

10. The concept of task oriented and people oriented leadership was developed by :
(A) John Berry (B) Maxwell
(C) Blake and Mouton (D) Hertzberg

11. A broad statement of the purpose, duties and responsibilities of a job or position, may
be referred to as :
(A) Job Analysis (B) Task Analysis
(C) Job Description (D) Job Specification

12. The term BARS stands for :

(A) Behavioural Abnormality Rating Scales
(B) Behavioural Abnormality Response Scales
(C) Behaviourally Anchored Response Scales
(D) Behaviourally Anchored Rating Scales

13. The art of judging, character of a person from appearance specially the face, based on
the assumption that face is an index of mind, is known as :
(A) Graphology (B) Physiognomy
(C) Phrenology (D) None of the above

14. The wage which has to be paid by an employer to his workers, irrespective of his
ability, is known as :
(A) Living wage (B) Fair wage
(C) Minimum wage (D) None of the above

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15. Which of the following machineries have been provided by The Industrial Disputes
Act for settlement of disputes between the employee and the employer ?
(A) Conciliation (B) Arbitration
(C) Adjudication (D) All of the above

16. Leaders who rely forever on the same internal advisers run the risk of being betrayed
due to :
(A) Lack of trust
(B) Improper distance from authority
(C) Closer leader-adviser relationship
(D) Lack of impartiality of the opinion

17. A Ltd. has beta (b) of 1.25. The risk free rate of return is 0.08 and Rm50.15. Share
price is Rs. 30. The expected return is :
(A) 10% (B) 8%
(C) 15% (D) 16.75%

18. In financial evaluation of a acquisition, the value of merger focusses on :

(A) corporate value (B) stakeholder value
(C) shareholder value (D) none of the above

19. Interest is paid on a deep discount bond :

(A) Monthly (B) Half yearly
(C) Annually (D) At the end of life of bond

20. Liberal credit policy may enhance the sales but will lead to :
(A) faster collection (B) higher turnover
(C) increase in bad debts (D) none of the above

21. The term marketing may be described as the performance of business activities that :
(A) gives profit to the organisation
(B) directs flow of goods from producer to consumer
(C) directs selling
(D) aims at satisfying the consumers

22. In “Marketing Myopia” the tendency of firms is to take a :

(A) broad view of the market (B) narrow view of the market
(C) narrow view of MIS (D) broad view of MIS

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23. Marketers can do on-line marketing by creating an electronic presence on :
(A) the internet, placing ads on-line
(B) participating in forums, newsgroups, web communities
(C) using webcasting and e-mail
(D) all of the above

24. Green marketing principles relates to :

(A) Agriculture marketing (B) Preservation of environment
(C) Social marketing environment (D) Organic product marketing

25. Which one of the following is not coming under principles of personal selling :
(A) Prospecting (B) Presentation and demonstration
(C) Promoting (D) Follow-up and maintenance

26. In L.P.P. a basic solution is called Degenerate if :

(A) None of the variables vanish
(B) All basic variables have infinite values
(C) L.P.P. has a finite no. of solution
(D) One or more of the basic variables vanish

27. In Queuing theory M/M/1/:/FIFO stands for :

(A) Multiple channel, Multiple criteria, single line, infinite population, first in first
out
(B) Multiple arrivals, Multiple channels, single distribution infinite population , first
in first out
(C) Multiple single channel, Poisson arrivals, exponential service, infinite queue length,
first in first out
(D) Poisson arrivals, exponential service, single channel, infinite queue length, first in
first out

28. In North -West corner rule for solving a transportation problem :

(A) the first assignment is made in the cell occupying the lower left - hand corner of
the transportation table
(B) the last assignment is made in the cell occupying the upper left hand corner of
the transportation table
(C) the last assignment is made in the cell occupying the lower right hand corner of
the transportation table
(D) the first assignment is made in the cell occupying the upper left - hand corner of
the transportation table

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29. The main advantage of the Delphi technique over other judgemental forecasting
technique is :
(A) The opinion of others are not allowed to influence individual experts
(B) It requires that a consensus be reached
(C) It is based on the majority decision
(D) For this less information is required

30. The Pessimistic Time Estimate is :

(A) Maximum possible time it could take to accomplish the job
(B) Minimum possible time it could take to accomplish the job
(C) The total time estimate of the critical path
(D) None of the above

31. If a random variable X follows Poisson distribution such that p(x51)5p(x52) then
the mean of the distribution is :
(A) 1 (B) 2
(C) 3 (D) 4

32. If r1250.86, r1350.65, r2350.72 then r12.3 is :

(A) 0.743 (B) 0.529
(C) 0.65 (D) 0.86

33. A and B are two events. The probability that at most one of A, B occurs is :
(A) 12P(A I B) (B) P(A')1P(B')1P(A' I B')

(C) P(A')1P(B')1P(A U B) (D) P(A I B')1P(A' I B)2P(A' I B')

34. X 12 and X 22 are independently distributed with n1 and n2 d.f. then ( X 12 /n1)/( X 22 /n2)
is distributed as :
(A) F - distribution (B) t - distribution
(C) normally distribution (D) X2 - distribution

35. For an estimator to be most efficient it must be :

(A) a sufficient estimator
(B) its sampling variance is less then any other consistent estimator
(C) its sampling variance is greater then any other consistent estimator
(D) both (A) and (B)

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36. A company is said to be multinational, if :
(A) Production and marketing are done in many countries
(B) Domestically produced items are sold globally
(C) Raw materials are procured from many countries
(D) Workers are hired globally

37. Ansoff’s growth vector refers to :

(A) Generic strategies (B) Product - market strategies
(C) Both of the above (D) None of the above

38. Five forces model was developed by :

(A) Alderfer (B) Maslow
(C) Porter (D) Elton Mayo

39. Global Depository Receipt is an instrument for :

(A) Foreign Direct Investment (B) Foreign Institutional Investment
(C) Public Bonds (D) None of the above

40. TRIP covers the aspects related to :

(A) Patents (B) Trade in services
(C) Globalization of business (D) Labour practices

41. Small scale Industry is defined in terms of :

(A) Volume of production
(B) Number of employees
(C) Amount of investment in plant and machinery
(D) Sales turnover

42. If each one of the partners of a firm pulls out of a business and decides to separate, it is
called :
(A) Dissolution of partnership (B) Dissolution of the firm
(C) Lockout of the firm (D) Bankruptcy of the firm

43. Overdraft is a short - term finance measure to :

(A) Pay taxes (B) Repay loan
(C) Purchase plant and equipment (D) meet working capital requirement

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44. Rural infrastructure development fund is provided by :
(A) NABARD (B) SIDBI
(C) ICICI (D) Nationalized Banks

45. Which of the following is a measure taken for revival of sick SSI :
(A) Margin money scheme (B) Reservation of items
(C) Export promotion (D) Tax holiday

46. “Ecology Paradigm” of management refers to :

(A) environmental management (B) Strategic choice framework
(C) Stockholders’ management (D) none of the above

47. Strategising within value framework is an approach of :

(A) Governance (B) Management
(C) Administration (D) None of the above

48. Economic value added is the measure of :

(A) Shareholders wealth (B) Strategy evaluation
(C) Stake holders (D) None of the above

49. Egalitarian behaviour refers to :

(A) natural behaviour (B) moral behaviour
(C) ethical behaviour wealth (D) social behaviour

50. Organisation value refers to :

(A) individual belief (B) Group belief
(C) Corporate believes and ethos (D) None of the above

-oOo-

D—1704 14
 MANAGEMENT
PAPER—II

Note : This paper contains fifty (50) multiple-choice questions, each question carrying
two (2) marks. Attempt all of them.

1. Demand curve under monopolistic competition is :

(A) Downward sloping and flat (B) Downward sloping and steep
(C) Parallel to ‘X’ axis (D) Parallel to ‘Y’ axis

2. If two commodities are complementary, then a rise in the price of one commodity will
induce :
(A) An upward shift of demand curve
(B) A rise in the price of the other commodity
(C) No shift in demand for the other commodity
(D) A backward shift in demand for the other commodity

3. If the demand curve is rectangular hyperbola the elasticity is :

(A) One (B) Zero (C) Infinity (D) Less than one

4. Which of the following is a flow variable ?

(A) Income (B) Product
(C) Capital Formation (D) Wealth

5. “Supply creates its won demand” is known as :

(A) Keynesian law (B) Says law (C) Veblen law (D) Giffin law

6. Functional type of organisation was first developed by :

(A) Pavlov (B) Taylor (C) Henry Fayol (D) Elton Mayo

7. ‘Gang-plank’ means :
(A) Quick Communication (B) Vertical Communication
(C) Horizontal Communication (D) None of the above

8. When the water allows one aspect of a person’s character or performance to influence
the enitre evaluation, the error will be :
(A) Constant error (B) Halo effect
(C) Central tendency (D) Similar to me

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9. Which of the following is not one of the ego-states of transactional analysis ?
(A) Child (B) Young (C) Adult (D) Parent

10. Vroom’s theory, motivation is expressed as :

(A) Valence 1 expectancy (B) Valence 2 expectancy
(C) Valence 3 expectancy (D) Valence 4 expectancy

11. _____________ is a predisposition to behave in a certain way and to take particular

point of view.
(A) Motivation (B) Behaviour (C) Perception (D) Attitude

12. The process of studying and collecting information relating to a specific job is known
as :
(A) Job specification (B) Job Analysis
(C) Motion Study (D) Job description

13. The systematic collection and feedback of performance data on an individual or group
derived from a number of stake holders in their performance is called :
(A) 1808 Appraisal (B) 3608 Apprasisal
(C) Confidential reports (D) None of these

14. Referring a dispute to an agreed third party for setlement or advice without the force
of litigation or resort to law is known as :
(A) Adjudication (B) Arbitration
(C) Conciliation (D) All of the above

15. Minimum wages are fixed by :

(A) Trade unions (B) Employees
(C) State Governments (D) Court of law

16. Under the factories Act 1948, safety officer is to be appointed in a factory where :
(A) 500 workers are working
(B) 1000 or more workers are working
(C) 3000 or more workers are working
(D) 5000 or more workers are working

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17. Match the following :
Trade Union Year of Establishment
I. INTUC i. 1920
II. AITUC ii. 1970
III. CITU iii. 1948
IV. BMS iv. 1954
(A) I - iv, II - iii, III - ii, IV - i
(B) I - i, II - ii, III - iii, IV - iv
(C) I - iv, II - i, III - iii, IV - ii
(D) I - iii, II - i, III - ii, IV - iv

18. Determining the value of a bond requires :

(i) an estimate of expected cash flows
(ii) an estimate of the required return
(iii) an estimate of the accounting rate of return
(iv) an estimate of the cost of capital
(A) (i) (B) ( i ) & ( ii ) (C) ( iii ) (D) ( iv )

19. Which is the most commonly used method for evaluation of larger projects ?
(A) Net Present Value (B) Pay Back Period
(C) Internal Rate of Return (D) Accounting Rate of Return

20. According to ‘dividend growth model’ approach the cost of equity is equal to :
(A) Cash dividends per share
(B) Cash dividends per share + bonus per share
(C) Dividend pay out ratio + expected growth rate in dividend
(D) Dividend yield + expected growth rate in dividends

21. The amount of dividend that can be legally distributed is governed by :

(A) Company law (B) Judicial pronouncement in leading cases
(C) Contractual restrictions (D) All above

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22. Pre-emptive right of equity shareholders means that they :
(A) Can vote to protect their rights
(B) Can maintain their proportional ownership by purchasing additional equity
shares issued by firm
(C) Can be elected as directors
(D) None of the above

23. Skimming Pricing is useful for :

(A) Luxury goods (B) Consumption goods
(C) Necessities. (D) Industrial goods

24. Distribution channel aims at moving products from producer to :

(A) Ultimate Consumer (B) Retailors
(C) Stockists (D) Brokers

25. In business situations, personal selling is :

(A) Inside Selling (B) Outside Selling
(C) Both of the above (D) None of the above

26. Mass communication tools available to marketers include :

(A) Advertising (B) Sales promotion
(C) Public relations (D) All the above

27. The financial results of marketing endeavours should be analysed in terms of :

(A) Sales volume (B) Market share
(C) Marketing costs (D) All the above

28. Stock variables are introduced in solving the problem :

(A) The Assignment Problem
(B) When the Constraints in the L.P.P are of greater than type
(C) When the Constraints in the L.P.P are of less than type
(D) For balancing a transportation problem

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29. A transportation problem will be a balanced problem :
(A) When the no. of rows is equal to no. of columns
(B) When total supply is equal to total demand
(C) When the problem has an optimum solution
(D) None of the above

30. PERT stands for :

(A) Product Estimation & Research Technique
(B) Project Evaluation and Review Technique
(C) Project Estimation and Review Technique
(D) None of the above

31. Which of the following is not an usual assumption of the single - channel queueing
model with Poisson Arrivals and exponential service times ?
(A) The queue discipline is last come, first served
(B) the mean arrival rate is less than the mean service rate
(C) The calling population is infinite
(D) All of the above

32. Production scheduling is done to achieve :

(A) Maximum utilisation of the plant and machinery
(B) Maximum utilisation of the work force
(C) Minimize inventories of raw materials and work in progress
(D) All of the above

33. Vogel’s Approximation method is used to :

(A) Study the Time and motion problem
(B) Solve the transportation problem
(C) Study the production scheduling problem
(D) Forecast demand

34. From the following which is more suitable for causal relationship involving 2 or more
variables :
(A) Correlation (B) Factor Analysis
(C) Regression Analysis (D) Time series Analysis

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35. The sum of two positive real members is 2 a. The probability that product of these
two numbers is not less than ( 3 4 ) times the greatest possible product is :

(A) 1 (B) 1 (C) 1 (D) 9

2 3 4 16

36. The level of singificance is the probability of committing the :

(A) Standard error (B) Type I error
(C) Probable error (D) Type II error

37. A measure characterizing a population is called a parameter and a similar measure

for a sample is called :
(A) Standard error (B) Non Parameter
(C) Sampling error (D) Statistic

38. In the case of normal distribution about 68% of data lies within :
(A) X + quartile deviation (B) X + 2 standard deviation
(C) X + mean deviation (D) X + standard deviation

39. In which of the following situations the Classical definition of probability cannot be
used :
(A) The total no. of outcomes is small
(B) The total no. of success is zero
(C) The total no. of outcomes is infinitely large
(D) The total no. of outcomes exceeds the total no. of success

40. Which one is not Porter’s generic strategy ?

(A) Growth Strategy (B) Cost Leadership Strategy
(C) Differentiation Strategy (D) Focus Strategy

41. Which is not a Primary activity in a Corporate value chain Analysis ?

(A) Services (B) Operations
(C) Technology development (D) Marketing and Sales

42. In growth - share matrix ‘Star’ indicates :

(A) High business qrowth - High market share
(B) High business growth - Low market share
(C) Low business growth - High market share
(D) Low business growth - Low market share

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43. Which of the following Act, regulates sick industries specially in India ?
(A) ID Act (B) SICA
(C) Companies ACT (D) None of these

44. Which of the following Board regulates sick enterprises in India ?

(A) SEBI (B) National Law Board
(C) BIFR (D) None of these

45. Enterpreneur is a person who :

(A) Initiates Business (B) Invests Capital
(C) Manages the business (D) All of the above

46. ‘Global Compact’ is an initiative of :

(A) UN (B) WTO (C) IMF (D) ILO

47. ‘Agenda 21’ relates to :

(A) Child Labour (B) Human Rights
(C) Environment protection (D) None of these

48. Which of the following convention of ILO provides for gender equity ?
(A) 87 (B) 98 (C) 100 (D) 105

49. Disclosure of information is a part of :

(A) Global Compact (B) Human Rights
(C) Social Clause (D) Corporate Governance

50. Corporate goverance revolves around :

(A) Stakeholders (B) Organisation
(C) Society (D) All of these

-oOo-

J—1705 14
 MANAGEMENT
PAPER—II

Note : This paper contains fifty (50) multiple-choice questions, each question carrying
two (2) marks. Attempt all of them.

1. In the law of variable proportions, phase “two” indicates :

(A) Increasing returns (B) Constant returns
(C) Diminishing returns (D) Negative returns

2. The demand curve facing the pure monopolist is :

(A) Positively sloped (B) Negatively sloped
(C) Horizontal (D) None of the above

3. Total consumer expenditure on a good falls as its price falls, this indicates that its price
elasticity is :
(A) One (B) Less than one
(C) More than one (D) None of the above

4. National income is :
(A) NDP at factor cost (B) NNP at factor cost
(C) NNP at market price (D) GNP at factor cost

5. “Supply creates its own demand” is known as :

(A) Keynesian law (B) Veblen law
(C) Say’s law (D) None of the above

6. An organisation that has developed capacity to adapt and change is described as :

(A) Virtual organisation (B) Learning organisation
(C) Developing organisation (D) Changing organisation

7. The personality theory that emphasises the unconscious determinants of behaviour is

known as :
(A) Cognitive theory (B) Psychodynamic theory
(C) Perpetual theory (D) Refreezing

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8. ‘Grapevine’ is the term used in relation to :
(A) Formal communication
(B) Informal communication
(C) Both formal and informal communication
(D) None of the above

9. Which theory of motivation places a premium on the effort - reward relationship ?

(A) Vroom’s (B) McClelland’s (C) Equity (D) Hersberg

10. __________ is the third person acting as a catalyst, who assests in the achievement of
the smooth introduction and implementation of change.
(A) change agent (B) change manager
(C) change supervisor (D) change player

11. A leader may use the following methods :

(a) Use criticism
(b) Encourage growth
(c) Set objectives
(d) Give orders and directions
Which of these methods are used by a democratic leader ?
(A) (a) and (b) (B) (c) and (d)
(C) (b) and (c) (D) (a), (b) and (d)

12. The provision of training and practice in an increased range of skills is known as :
(A) Job enrichment (B) Job enlargement
(C) Job evaluation (D) Job analysis

13. A level or standard in a scale against which performance can be evaluated in order to
structure similar process is described as :
(A) Standardisation (B) Bench - marking
(C) Structuring (D) Institutionalising

14. A wage period shall not exceed :

(A) Forty days (B) One week
(C) One month (D) Thirty - five days

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15. In a factory, where more than _________ women workers are ordinarily employed
creche facility has to be provided.
(A) 20 (B) 30 (C) 40 (D) 50

16. __________ is temporarily closing down the undertaking with the intention of forcing
workers to accept the demands of employer.
(A) Lay-off (B) Retrenchment
(C) Lock out (D) Termination

17. Match the following :

Trade Union Political Affiliation
(a) INTUC (i) Congress (I)
(b) AITUC (ii) CPI (M)
(c) CITU (iii) CPI
(d) BMS (iv) BJP
Code : (a) (b) (c) (d)
(A) (iv) (iii) (ii) (i)
(B) (i) (ii) (iii) (iv)
(C) (i) (iii) (ii) (iv)
(D) (i) (iv) (iii) (ii)

18. According to ‘dividend discount model’ the value of an equity share is equal to :
(A) Present value of dividends expected from equity ownership
(B) Present value of dividends expected from equity ownership plus present value of
sale price expected when equity share is sold
(C) Present value of dividends and bonus expected from equity ownership
(D) None of the above

19. NPV is the sum of :

(A) Present values of all the cash flows expected to occur over the life of a project
(B) Present values of the positive cash flows expected to occur over the life of a project
(C) Cummulative values of the positive cash flows expected to occur over the life of a
project.
(D) Total value of the positive and negative cash flows expected to occur over the life
of a project.

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20. Decision tree analysis is a useful tool for analysing :
(A) sequential decisions in the face of cost
(B) isolated decisions in the face of risk
(C) sequential decisions in the face of risk
(D) quick decisions in the face of returns

21. The division of a company into two separate independent companies is known as :
(A) Spin off (B) Dissolution (C) Liquidation (D) Split up

22. The nature of amalgamation as uniting of interests or acquisition is described in which

Accounting standard issued by ICAI.
(A) AS - 13 (B) AS - 14 (C) AS - 15 (D) AS - 16

23. Marketing concept emphasises on :

(A) Customer - oriented products (B) Value creation
(C) Sales orientation (D) Production orientation

24. Skimming pricing implies :

(A) Experimental pricing (B) Low pricing
(C) High pricing (D) None of the above

25. Impulse buying implies :

(A) Purchasing with little or no advance planning
(B) Purchasing involving all family members
(C) Purchasing involving all relatives
(D) None of the above

26. The first commandment in marketing is :

(A) know thy customer (B) know thy product
(C) know thy markets (D) know thy price

27. A brand is a means of :

(A) Naming the products
(B) Packaging of the products
(C) Contents of the products
(D) Identifying and differentiating the company’s products

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28. Consumers’ Risk is :
(A) the lowest allowable probability of accepting a bad lot
(B) the largest allowable probability of rejecting a good lot
(C) the largest allowable probability of accepting a bad lot
(D) none of the above

29. Surplus variables are introduced for solving :

(A) the transportation problem
(B) the L.P.P. problem with constraints are of less than type
(C) the CPM problems
(D) the L.P.P. problem with constraints are of greater than type

30. The decision making under risk is the process when :

(A) the probability distribution of the variable is known
(B) the objective function is not known
(C) how to take the decision is not known
(D) none of the above

31. The economic order quantity is that quantity for which :

(A) the fixed cost is equal to the variable cost
(B) the ordering cost is equal to the carrying cost
(C) the economic cost is less than economic value
(D) the value of the product is equal to the operating cost

32. In quencing theory the symbol M/M/1/FIFO/: stands for :

(A) Exponential arrival rate, poisson service rate, single channel, first in first out and
infinite queue length
(B) Poisson arrival, exponential service rate, single channel, first in first out and infinite
queue length
(C) Poisson arrival, poisson service rate, single server, first in first out and finite queue
length
(D) None of the above

33. The ABC analysis in inventory management is carried out on the basis of :
(A) 60/30/10 rule (B) 80/20 rule
(C) 50/30/20 rule (D) None of the above

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34. The Binomial distribution with parameters n and p approaches Poisson distribution if :
(A) n is large and p is small
(B) n is large and both p and q are not close to zero
(C) n is large and p is large
(D) n is small and p is small

35. The technique used to measure the degree of association between the two variables is
known as :
(A) Regression Analysis (B) Dispersion
(C) Skewness (D) Correlation Analysis

36. A and B play a game where each is asked to select a number from 1 to 25. If the two
numbers match, both of them win a prize. The probability that they will not win a
prize in a single trial is :
(A) 1/25 (B) 24/25 (C) 2/25 (D) None of the above

37. Analysis of Co-variance is used for :

(A) removing the effect of one or more unwanted factors in an analysis of variance
(B) increasing precision in randomised experiments
(C) studying regression in a multiple classification
(D) all of the above

38. The growing popularity of relational DBMS is due to :

(A) report writing (B) its menu drivenness
(C) better response time (D) query processing

39. Three numbers are selected at random without replacement from the set of the numbers
{1, 2, ......., N}. The conditional probability that the third numbers lies between the first
two numbers if the first number is known to be smaller than the second is :
(A) 1/6 (B) 1/3 (C) 1/2 (D) None of the above

40. Entry barriers for a company to enter an industry can occur due to :
(A) Economics of scale (B) Product differentiation
(C) Switching costs (D) All the above

41. Which is not a support activity in a corporate value chain analysis ?

(A) HRM (Human Resource Management)
(B) Services
(C) Technology development
(D) Procurement

D—1705 12
42. In growth share matrix ‘cash cow’ indicates :
(A) High business growth - High market share
(B) High business growth - Low market share
(C) Low business growth - High market share
(D) Low business growth - Low market share

43. Principles of enterpreneurship may be applied to :

(A) Government (B) Business (C) Society (D) All of the above

44. The criteria for small business is :

(A) Capital invested (B) Number of employees
(C) Number of managers (D) Type of business

45. Which of the following Bank has been entrusted with the responsibility of developing
and supporting small business :
(A) NABARD (B) SIDBI (C) IDBI (D) None of these

46. Which of the following standardisation certificate is related to the protection of

environment ?
(A) ISO 2000 (B) ISO 9000 (C) ISO 14000 (D) None of these

47. ‘Global Campact’ is related to :

(A) Human rights (B) Social responsibility
(C) Environment protection (D) Women rights

48. Social responsibility is a responsibility towards :

(A) Employees (B) Government (C) Society (D) All of these

49. Combination of character and behaviour is known as :

(A) Technological ethics (B) Ethico - moral ethics
(C) Value based ethics (D) None of these

50. The most appropriate goal of corporate social responsibility is centred around :
(A) Philanthropic activities (B) Voluntary activities
(C) Ethical based activities (D) Legalistic activities

-oOo-

D—1705 14
 MANAGEMENT
PAPER—II

Note : This paper contains fifty (50) multiple-choice questions, each question carrying
two (2) marks. Attempt all of them.

1. A firm produces output using labour and capital. If prices of both inputs double, then
the total minimum cost of producing any given level of output is :
(A) Necessarily doubled
(B) Necessarily less than doubled
(C) Necessarily more than doubled
(D) Doubled provided the firm has constant returns to scale technology

2. In the long run a firm under perfectly competitive market earns :

(A) Economic profit (B) Normal profit
(C) Super normal profit (D) Sub normal profit

3. National income at current prices is equal to :

(A) Gross National Product (GNP) at market prices
(B) Net National Product (NNP) at market prices
(C) Net national product at factor cost
(D) Gross domestic product at market prices

4. A monopolist always charges a price which is :

(A) Greater than marginal cost (B) Equal to marginal cost
(C) Equal to average cost (D) Equal to average variable cost

5. The Kinky demand curve hypothesis predicts :

(A) Stable costs for the firms (B) Sticky prices in the market
(C) More advertising by the firms (D) None of the above

6. Organizational behaviour was popularised by :

(A) F.W. Taylor (B) Keith Davis
(C) Elton Mayo (D) David Cock

J—1706 2
7. The Neo - classical theory of organizational structure was propounded by :
(A) Henry Fayol (B) Elton Mayo
(C) Peter Drucker (D) J.T. Dunlop

8. The conditioned - learning theory was propounded by :

(A) Thoradike (B) Pevlov
(C) Maslow (D) Luther Gullick

9. Two factor theory of Motivation was propounded by :

(A) Vroom (B) Maslow (C) Peterson (D) Herzberg

10. The Book “Human Behaviour at work” was written by :

(A) McGregor (B) Abraham Maslow
(C) Herzberg (D) Keith Davis

11. Human Resource Management is the management of :

(A) Man (B) Machine (C) Material (D) All the above

12. Human Resource Planning is the __________ step in the management function.
(A) Primary (B) Middle
(C) Final (D) None of the above

13. Giving general informations regarding organisation to the newly appointed personnel
is called :
(A) Training (B) Development (C) Induction (D) Promotion

14. Job evaluation is the evaluation of __________ .

(A) Work (B) Worker
(C) Working Conditions (D) All the above

15. Industrial relations consists of the relations between :

(A) Employer and employees (B) Union and Management
(C) State and Management (D) All the above

J—1706 4
16. The father of the Employees State Insurance Scheme in India is :
(A) B.P. Wadia (B) B.P. Adarkar
(C) V.V. Giri (D) N.M. Lokhande

17. Dividend is paid only out of :

(A) Capital profit (B) Current or Accumulated profit
(C) Reserves (D) Cash

18. Net operating income approach is very close to :

(A) Modigilliani - Miller approach (B) Net income approach
(C) Optimum capital structure (D) None of the above

19. Point out which one does not effect the working capital of a firm :
(A) Cash (B) Corporate Tax
(C) Current liabilities (D) None of the above

20. Share capital of a company may be reduced by :

(A) A special resolution
(B) An ordinary resolution
(C) By the Company Law board’s permission
(D) By the board of Director

21. Which of the following statement is correct ?

(A) ARR method makes the use of cash flow after tax
(B) Payback method considers cash flows only upto the payback period
(C) Lower the cost of capital, lower the chance of acceptance of the project
(D) Profitability index method does not make use of salvage value of the project

22. The Green Marketing concept refers to :

(A) Agricultural marketing (B) Environment friendly
(C) Agro - based industrial marketing (D) Euro - Agricultural marketing

J—1706 6
23. The Psychographical factors in Market Segmentation will include :
(A) Income and occupation (B) Sex and Age
(C) Hobbies and activities (D) Living standard and Income

24. In channels of distribution of Industrial products which level is popular ?

(A) Zero level and one level (B) One level and two level
(C) Two level only (D) Multi level

25. Product Management do not cover one of the following aspects :

(A) Product - line (B) Product - Mix
(C) Product - coordination (D) Product life cycle

26. What are the stages of a product life cycle ?

(A) growth, introduction, saturation, decline
(B) introduction, growth, maturity, decline
(C) introduction, maturity, growth, decline
(D) maturity, saturation, decline, introduction

27. Which one is the correct sequence of marketing - mix ?

(A) Product, place, price, promotion (B) Product, promotion, place, price
(C) Price, promotion, place, product (D) Product, price, place, promotion

28. Which one of the following is not the Type of Plant Layout ?
(A) Process Layout (B) Product Layout
(C) Fixed Layout (D) Selection Layout

29. Which factor need to be considered in the location of a plant ?

(A) Availability of power (B) Infrastructure facilities
(C) Marketing facilities (D) All of the above

30. The probability that exactly n customers are in the queueing system
M/M/1/FIFO/: under steady state is :
(A) Pn5(12r)n r (B) Pn5(12r). r
(C) Pn 5(12r) rn (D) Pn5(12r)n .rn
where r denotes traffic intensity

J—1706 8
31. In the EOQ model :
(A) Demand is known and occurs at a constant rate
(B) Shortages are allowed
(C) Inventory replenishment time is finite
(D) Both (B) and (C)

32. Duality Problem is related to :

(A) Markov analysis (B) Inventory problem
(C) Linear Programming problem (D) Queueing Problem

33. In crashing a CPM network, which of the following is true ?

(A) The first activity to be crashed is the highest expensive activity on the critical path
(B) The last activity to be crashed is the least expensive activity on the critical path
(C) When path with the lowest length cannot be reduced further
(D) None of the above

34. Half percent of the letters mailed in a city have incorrect address. Out of 200 such
letters mailed in a day, the probability of finding at most 3 incorrect addresses is :

8 1 5
(A) 3 e8 (B) e 1
(C) e 1
(D) e 1
3 6 2

35. The two lines of regression are 3x12y526 and 6x1y531 then the mean of x is :
(A) 3 (B) 4 (C) 7 (D) 9

36. Standard error of ‘r’ is given by :

r 2 2n 12r 2 12r 2
(A) (B) (C) (D) R2
100 n n

37. The power of a test of hypothesis is related to the probability of committing the :
(A) type I error (B) type II error
(C) standard error (D) probable error

J—1706 10
38. Which of the following cannot be done by e - mail ?
(A) Forward a received message to several people
(B) Send a message to many recipients
(C) Place a message on a corporate bulletin board
(D) Correspond with people worldwide

39. Growing popularity of relational DBMS due to :

(A) User friendliness (B) Report Writing
(C) Better Response time (D) Query Processing

40. Product / Market Expansion grid developed by :

(A) Chandler (B) Peter Drucker
(C) Michel E. Porter (D) Igor Ansoff

41. Which one of the following is not the generic strategy ?

(A) Cost leadership (B) Positioning
(C) Differentiation (D) Focus

42. Which ‘S’ is not included in the McKinsey’s 7 S Frame work ?

(A) Style (B) System (C) Staff (D) Selection

43. Five forces model is used for :

(A) competitor analysis (B) organisational analysis
(C) industry analysis (D) corporate analysis

44. Which of the following book is not written by Michel E. Porter ?

(A) Fortune at the bottom of the Pyramid
(B) Competitive strategy
(C) Competitive advantage
(D) Competitive advantages of nations

J—1706 12
45. “Innovation and Entrepreneurship” was a book written by :

(A) Philip Kotler (B) Henry Fayol

(C) C.K. Prahlad (D) Peter F. Drucker

46. Industrial sickness can be caused by :

(A) Lack of market demand (B) Product obsolescence

(C) Competition from big industries (D) All the above

47. Sick units are referred to :

(A) RBI (B) SIDBI (C) NIRD (D) BIFR

48. Value based organizations are :

(A) Those which are having high market share

(B) Those which are having high share price

(C) Those which declare high dividends

(D) Those which follow ethics and social responsibility

49. Environmental ethics refers to :

(A) Quality of the product (B) Price of the product

(C) Unfair trade practices (D) Pollution

50. Corporate governance deals with :

(A) Society (B) Employees

(C) Organization (D) All the above

-oOo-

J—1706 14
 MANAGEMENT
PAPER—II

Note : This paper contains fifty (50) multiple-choice questions, each question carrying
two (2) marks. Attempt all of them.

1. Price elasticity of demand for luxury goods will be :

(A) Relatively elastic (B) Relatively inelastic
(C) Infinitely elastic (D) Infinitely inelastic

2. In the short run, profit maximising firm produces additional units of production, as
long as :
(A) Elasticity of demand is infinite
(B) Total revenue is increasing
(C) Price covers at least average fixed cost
(D) Additional revenue per unit exceeds additional cost per unit

3. In the typical demand schedule, quantity demanded :

(A) varies directly with price (B) varies indirectly with price
(C) varies inversely with price (D) is independent of price

4. Shut down point is that point where price is :

(A) Less than variable cost (B) Equal to variable cost
(C) Equal to average cost (D) None of the above

5. Which is not an instrument of monitory policy ?

(A) Bank rate (B) Tax policy
(C) Reserve ratio (D) Buying/selling securities in open market

6. The assumption that conflict between the organisation (if limited to the economic context
only) leads to innovativeness and the new product development, technological
advancement and better services at low prices, refers to :
(A) Law of diminishing return (B) Cost reduction strategy
(C) Deflationary economy (D) Laissez-faire economy

7. Cognitive reorganisation and reinforcement takes place in which of the following stages
of adoption :
(A) Implementation (B) Proposal
(C) Deliberation (D) All of the above

D—1706 2
8. Those functions in an organisation, which are perceived to be directly contributing to
the organisation’s objectives, are known as :
(A) Staff function (B) Corporate function
(C) Integration function (D) Line function

9. The assumptions about human nature

(i) work is inherently distasteful to most people
(ii) most people would like to be directed, and
(iii) most people have little or no creativity
are propounded by :
(A) Hygiene Theory (B) Maslow’s Theory
(C) Theory X (D) Theory Y

10. Objectives of communication

(i) to seek compliance and ensure uniformity in action
(ii) to meet deadlines and production targets
(iii) to disseminate information to a larger number of people, and
(iv) save cost in terms of time and money refers to :
(A) One-way communication (B) Two-way communication
(C) Grapevine (D) Non-verbal communication

11. The process of establishing the value of jobs in a Job hierarchy, is known as :
(A) Job Analysis (B) Job Evaluation
(C) Job Requirement (D) Performance Evaluation

12. Standing Labour Conference (SLC) was constituted in line with the recommendations
of Royal Commission on Labour in the year :
(A) 1942 (B) 1944 (C) 1946 (D) 1948

13. The art of estimating a person’s character etc., from the handwriting, is known as :
(A) Physiognomy (B) Phrenology
(C) Numerology (D) Graphology

14. Which of the following are not significant causal factors for grievances ?
(A) Wages, working conditions and supervision
(B) Management policies, practices and maladjustment of employees
(C) Both (A) and (B) above
(D) None of the above

D—1706 4
15. The method of management development which purports to develop awareness and
sentiments to one’s own and others’ behavioural patterns, is known as :
(A) Structured Insight (B) The syndicate system
(C) Business games (D) Sensitivity training

16. In capital lease depreciation is claimed by :

(A) Lessor (B) Lessee
(C) Both (D) None of the above

17. Corporate control is maintained intact by issuing shares through :

(A) Public offer (B) Rights issue
(C) Book building (D) None of the above

18. Convertible bond is :

(A) Debt+Warrant (B) Debt+Cash
(C) Debt+Share (D) None of the above

19. In a merger bargain, the exchange ratio is determined on the basis of :

(A) Potential of merging company
(B) Issued capital of the two companies
(C) Market share
(D) Future value of company to the acquirer

20. Corporate-Governance deals with value creation for :

(A) Corporate (B) Shareholders
(C) Stakeholders (D) None of the above

21. State which one is not a function of marketing :

(A) Identification of customers needs and wants
(B) Product planning and development
(C) Guiding the funding agencies
(D) Communicating

22. “Marketing mayopia” is based upon :

(A) current product offerings (B) forecasting the future product offering
(C) dropping a product (D) adding a product

D—1706 6
23. Marketing information system is the system of information that flows to assist :
(A) Promotional programmes
(B) Sales personnels development
(C) Marketing planning and decision making
(D) Marketing-mix

24. SWOT analysis is analytical tool for having :

(A) Comperative advantage
(B) Competitive advantage
(C) Comprehension of current overall situation of a firm
(D) None of the above

25. Consumers are aware of damages caused by packaging, product process, so they
prefer :
(A) Social marketing concept (B) Green marketing concept
(C) Direct marketing concept (D) Organic marketing concept

26. A L.P.P. will have an unbounded solution if :

(A) The objective function is non linear
(B) If all the basic solutions vanish
(C) If for atleast one j, for which yij≤0, Zj−Cj is negative
(D) If for all j, for which yij≤0, Zj−Cj is positive

27. Just-in-time inventory system implies :

(A) EOQ in purchase orders
(B) Production lots in manufacturing process
(C) Time lag in new material procurement
(D) Production quantities ideally equal to delivery quantities

28. The Critical Path of a network is :

(A) for which earliest start time and latest start time are same
(B) the shortest time path through a network
(C) for which earliest finish time and latest finish time are same
(D) the longest time path through a network

D—1706 8
29. The necessary and sufficient condition for the existence of a feasible solution to the
transportation problem is :
(A) number of rows should be equal to the number of columns
m n
(B) the total destination requirement equals the total origin capacity, ∑ a i = ∑ b j
i =1 j =1

(C) the total destination requirement is not equal to the total origin capacity,
m n
∑ ai ≠ ∑ b j
i =1 j =1

(D) the total destination requirement is more than the total origin capacity,
m n
∑ ai > ∑ b j
i =1 j =1

30. AQL (Acceptable Quality Level) is :

(A) Quality level acceptable in the society
(B) Fraction defective (f) that the user considers acceptable
(C) Fraction defective (f) that the producer considers acceptable
(D) Quality level acceptable in the industry

31. The two lines of regression are 3x+2y=26 and 6x+y=31 then the mean of X is :
(A) 3 (B) 4 (C) 7 (D) 9

32. A speaks the truth in 70 percent cases and B in 80 percent cases. The probability that
they will contradict each other in describing a single event :
(A) 0.36 (B) 0.38 (C) 0.4 (D) .42

33. A maximum likelihood estimator is always :

(A) consistent (B) unbiased (C) efficient (D) none of these

1 2
1 ∞ −2 t
34. If X is normally distributed with mean 30 and s.d. 5, and Φ ( x ) denotes ∫e dt
2π 0
then P (26≤x≤40) and P (x#45) are given by :
1 1
(A) Φ (.8)+ Φ (2) and Φ (3)− (B) Φ (2)+ Φ (.8) and −Φ (3)
2 2

1 1
(C) Φ (2)− Φ (.8) and +Φ (3) (D) Φ (2)− Φ (.8) and −Φ (3)
2 2

D—1706 10
35. Growing popularity of DBMS is due to :
(A) User friendliness (B) Report writing
(C) Better response time (D) Query processing

36. Which of the following terms is not a part of the BCG model ?
(A) Star (B) Cash cow (C) Cat (D) Dog

37. The dimensions of Group Mapping are :

(A) Price versus Product-line breadth
(B) Price versus Volume of production
(C) Production capacity versus Cost of production
(D) Total demand versus Market share

38. Which of the following is not an element of the Porter’s Generic competitive strategy
model ?
(A) Cost leadership (B) Focus
(C) Product Differentiation (D) Leadership

39. Market entry strategies vary from country to country because of :

(A) Varied political environment (B) Varied cultural environment
(C) Varied economic conditions (D) All of the above

40. Policies of WTO are formulated by :

(A) Heads of the member countries (B) Trading Blocks
(C) Ministerial conference (D) None of the above

41. Which is not a socio-economic rationale for promoting SSI in India ?

(A) Employment generation
(B) Export promotion
(C) Offering competition to large-scale industry
(D) Labour intensive

42. Which of the following is not a part of incentives to SSI ?

(A) Subsidy to labour wages (B) Tax holidays
(C) Lower interest rate (D) Interest subsidy

43. The interest rate for ‘bridge finance’ is :

(A) lower than that of short-term loan
(B) equal to that of short-term loan
(C) higher than that of short-term loan
(D) nil

D—1706 12
44. Which of the following organisations provide institutional support to SSI ?
(A) Indian Institute of Foreign Trade (B) Tool Design Institute of SIDO
(C) Nationalized Banks (D) Ministry of Commerce

45. Technology Development and Modernization Fund is provided by :

(A) SIDBI (B) NABARD (C) KVIC (D) SIDO

46. “Ecology Paradigm” of management refers to :

(A) environmental management (B) stackholders’ management
(C) strategic choice framework (D) none of the above

47. Social responsibility is not :

(A) Legal behaviour (B) Legal compliances
(C) Ethical compulsion (D) All of the above

48. Economic value added is the measure of :

(A) strategy evaluation (B) shareholders’ wealth
(C) stakeholders’ wealth (D) none of the above

49. Egalitarian behaviour refers to :

(A) natural behaviour (B) moral behaviour
(C) social behaviour (D) ethical behaviour

50. The process through which people are baptized to accept the tradition and maintain
the homogeneity of ethos and behaviours is termed as :
(A) Induction (B) Orientation
(C) Acclimatisation (D) Socialization

-oOo-

D—1706 14
 MANAGEMENT
PAPER—II

Note : This paper contains fifty (50) multiple-choice questions, each question carrying
two (2) marks. Attempt all of them.

1. ISO cost line is also called as :

(A) Profit line (B) Budget line
(C) Production line (D) Return line

2. Quadratic cost function is written as :

(A) TC5a1bQ (B) TC5a1bQ1Q2
(C) TC5a1bQ1cQ (D) TC5a1b1c

3. Transfer Pricing is referred to as :

(A) Price charged to a customer
(B) Price charged to different firms
(C) Price charged under intrafirm transfer of product
(D) Interfirm transfer price

4. Margin of safety is :
(A) Above the Break even point (B) Below the Break even point
(C) Equals to Break even point (D) Not related to Break even point

5. Profit is maximised when :

(A) MC5MR (B) MC>MR (C) MC<MR (D) MR ≤ MC

6. What is the shape of short run average cost curve ?

(A) ‘L’ shape (B) ‘U’ shape (C) Horizontal (D) Vertical

7. OB is concerned with study of :

(A) individuals, groups and organisation system
(B) individuals, groups and their institutions
(C) organisation, its roles and performance, and behaviour
(D) organisation, its environment, its strategies and performance

J—1707 2
8. Instrumental values are :
(A) Hardworking, sincerity, rationality and self-discipline
(B) Free of conflict, quality, happiness and self-esteem
(C) Social recognition, contentment and harmony
(D) All the above

9. Emotional Intelligence includes :

(A) Self awareness, self management and self motivation
(B) Self awareness, self knowledge and self understanding
(C) Knowledge, belief, culture and perception
(D) All the above

10. Who propounded the Two - Factor Theory ?

(A) Frederick Herberg (B) Mc Gregor
(C) J. S. Mill (D) Adam Smith

11. Who developed the Two-Dimensional Managerial Grid ?

(A) Blake and Mouton (B) Howthorne
(C) McCarthy (D) W. A. Taylor

12. What is the most important attribute of an effective leader ?

(A) Behaviour (B) Character (C) Drive (D) Influence

13. Graphical representation of Manpower in the organisation is known as :

(A) Replacement chart (B) Placement chart
(C) Organisation structure (D) Manpower inventory

14. The process of retaining suitable successors is called :

(A) Alternative staffing (B) Succession planning
(C) Position replacement (D) Promotion

15. A systematic comparison done in order to determine the value of Job is called :
(A) Job upgradation (B) Job enrichment
(C) Job Evaluation (D) Job analysis

J—1707 4
16. A wilful disobedience of authority is called :
(A) Insubordination (B) Indiscipline
(C) Wilful disobedience (D) Misconduct

17. What is the operative function of HRM ?

(A) Organising (B) Directing
(C) Controlling (D) Integrating

18. Interviews conducted for knowing why an employee is leaving the organisation is called :
(A) Exit Interview (B) Separation interview
(C) Termination interview (D) Retrenchment interview

19. Under profit-maximisation goal, which of the following decisions does not fall under
the purview of financial management ?
(A) Investment Decision (B) Debt-Equity-mix Decision
(C) Dividend Decision (D) Capitalisation Decision

20. Which of the following is not a determinant of dividend policy of the firm ?
(A) The employee efficiency (B) The future financial needs
(C) The market rate of dividend (D) The future profit projection of the firm

21. While computing the average cost of capital of the firm, the cost of which of the following
sources of funds is considered almost equal to the cost of equity ?
(A) Preference capital (B) Retained earnings
(C) Public deposits (D) Loan from financial institutions

22. Which global company has been recently acquired by Tata Steel ?
(A) VSL (B) NUMUS (C) CORUS (D) BSL

23. The Irrelevance Theory of dividend is also known as :

(A) Guthman Theory (B) W. B. Theory
(C) M. M. Theory (D) Vanhorne Theory

J—1707 6
24. Capital budgeting is concerned with budgeting for :
(A) Capital income (B) Capital expenditure
(C) Capital gains (D) Revenue expenditure

25. Which of the following activates a consumer to accomplish his goal ?

(A) Motivation (B) Perception (C) Attitude (D) Behaviour

26. Who is associated with the statement that marketing is the process of creation and
delivery of standard of Living ?
(A) Mc Nair (B) Mazur
(C) Kotler (D) Peter Drucker

27. What is the basis for segmenting vitamin market ?

(A) Age (B) Place of distribution
(C) Gender (D) Income status

28. Which concept of marketing maintains that the company aggressively promotes and
pushes its products ?
(A) Marketing (B) Product (C) Production (D) Selling

29. Which of the following is the sole vehicle for creating and delivering customer value ?
(A) Marketing channel (B) Marketing communication
(C) Marketing mix (D) Marketing research

30. Who is associated with concept of marketing myopia ?

(A) Levitt (B) Drucker (C) Mc Cardhy (D) Kotler

31. The responsibility of production manager is to take decisions relating to :

(A) System Design (B) System operation
(C) Inventory control (D) Quality control

32. Product Mix includes :

(A) Product line (B) Product Depth
(C) Product Breadth (D) All the above

J—1707 8
33. The objective of inventory control is :
(A) to produce required quality of produce
(B) to produce required quantity of produce
(C) to minimise the cost
(D) all the above

34. Who introduced the concept of time and motion study ?

(A) Henry Fayol (B) Peter Drucker
(C) R Likert (D) F W Taylor

35. The pessimistic time estimate is :

(A) the maximum time to be taken in the accomplishment of goal ;
(B) the minimum time to be taken in the accomplishment of goal ;
(C) the total time estimate of the critical path
(D) none of the above

36. An unbiased coin is tossed thrice. If it is given that its first two tosses show head then
the probability that the third toss shows a tail is :
(A) 1/5 (B) 1/3 (C) 1/2 (D) 1/9

37. If a random variable X follows Poisson Distribution such that P(X51)5 P(X52) then
the mean of the distribution is :
(A) 1 (B) 2 (C) 3 (D) 4

38. The point of influxion of Normal curve are :

2
(A) m6s (B) m62s (C) m63s (D) m6 s
3

39. For an estimator to be most efficient it must be :

(A) a sufficient estimator
(B) its sampling variance is less than any other consistent estimator
(C) its sampling variance is greater than any other consistent estimator
(D) both (A) and (B)

J—1707 10
40. A source programme is :
(A) a programme written in machine language
(B) a programme to be translated into machine language
(C) the machine language translation of a programme written in high - level language
(D) none of the above

41. Which one of the following is the corporate Business portfolio analysis Technique ?
(A) Product Portfolio Analysis (B) Ansoff Matrix
(C) Environmental Analysis (D) BCG Matrix

42. Under which stage of the industry life cycle, entry barriers increase and threat of potential
competitors decrease :
(A) Beginning stage (B) Growing stage
(C) Mature stage (D) Declining stage

43. Which of the following is a short-term strategy for a firm ?

(A) Business strategy (B) Annual objectives
(C) Functional strategy (D) None of the above

44. Which of the following terms best explains the partnership between two or more firms
to carry out a specific project in a selected area of business ?
(A) Joint Venture (B) Merger and Acquisition
(C) Cartel (D) None of the above

45. Who is the author of the book “Innovation and Entrepreneurship” ?

(A) Philip Kotler (B) Michael E. Porter
(C) C. K. Prahalada (D) Peter Drucker

46. “SEZ” stands for :

(A) Small Entrepreneurship Zone
(B) Special Entrepreneurship Zone
(C) Sick Economic Zone
(D) Special Economic Zone

J—1707 12
47. Which one of the following is not the purpose of the promotion of small Business ?
(A) Generation of employment
(B) Balanced Regional Development
(C) Promotion of Communal Harmony
(D) Reduction in rural poverty

48. Social Responsibility of business refers to :

(A) Profit maximization of business
(B) Wealth maximization
(C) Concerns towards society and its needs
(D) Concerns towards shareholders’ interests

49. Value based organisations are :

(A) Profit - making units
(B) Wealth maximisation units
(C) Organisation that adds value to the products
(D) Organisation practising values

50. Which of the following practice is unethical ?

(A) Profitability (B) Profiteering
(C) Customer concerns (D) Sales promotion

-oOo-

J—1707 14
 MANAGEMENT
PAPER—II

Note : This paper contains fifty (50) multiple-choice questions, each question carrying
two (2) marks. Attempt all of them.

1. In demand forecasting important method used in trend projection is :

(A) Scientific method (B) Bax-Jenkin method
(C) Delphi method (D) Logistics method

2. The Cobb Dauglass Production function is often used as :

(A) w5AKa Lb (B) w5AKa L12a
(C) log w5a log K1log C (D) w5Aba2La

3. Skimming price for a new product is :

(A) Low initial price (B) Average price
(C) High initial price (D) Moderate price

4. Under monopoly market structure, the degree of freedom in pricing decision is :

(A) Very low (B) Quite good (C) Very high (D) Zero

5. Capital budgeting decisions are generally :

(A) Irreversible (B) Reversible
(C) Irrevocable (D) Revocable

6. Which one is not the pre-requisite of a perfect market ?

(A) Existence of large number of buyers and sellers in the market
(B) Free flow of market information among the players
(C) Free entry and free exit
(D) Intervention of the Government

7. The term emotion refers to :

(A) a broad range of feelings that a person experiences
(B) a broad and intense feeling that is directed at someone or something
(C) a broad range of feelings in the form of anger that a person experiences
(D) None of the above

D—1707 2
8. The term job satisfaction refers to :
(A) a collection of feelings that an individual has towards his/her job
(B) the degree to which an individual identifies himself/herself with job
(C) the degree to which an individual identifies himself/herself with the organisation
(D) none of the above

9. The following are the three components of creativity :

(A) Expertise, creativity skills and task motivation
(B) Expertise, innovation and rationality
(C) Expertise, rationality and relevance
(D) Expertise, novelty and performance

10. Two-factor theory was propounded by :

(A) Fredrick Herzberg (B) David Mc Clelland
(C) McCardhy (D) Philip Kotler

11. ‘Grape Wine’ is the term used in relation to :

(A) Formal Communication (B) Informal Communication
(C) Horizontal Communication (D) Vertical Communication

12. Mutual cooperation and networking is :

(A) Win-win strategy (B) Networking strategy
(C) Franchise strategy (D) Competitive strategy

13. A list of Jobs duties, Responsibilities, reporting relationships and working conditions is
called :
(A) Job enhancement (B) Job specification
(C) Job description (D) Job enlargement

14. The use of predesigned set of questions used in an interview process leads to :
(A) Behavioural interview (B) Situational interview
(C) Non-directional interview (D) Structured interview

D—1707 4
15. One of the following is a Training provided to enhance decision making skills :
(A) On the job training (B) Behavioural modelling
(C) Management games (D) Action learning

16. Dramatic reduction of manpower is called :

(A) Termination (B) Retrenchment
(C) Downsizing (D) Rightsizing

17. Monitoring employees through a preplanned series of position is called :

(A) Promotion (B) Succession planning
(C) Job reporting (D) Job rotation

18. A situation where management is unable to provide employment due to nonavailability

of work is called :
(A) Lock out (B) Lay off (C) Termination (D) Closure

19. The basic goal of financial management is :

(A) Maximising the profit
(B) Maximising shareholders’ wealth in the long run
(C) Maximising the rate of dividend
(D) Minimising the business risk

20. The principal value of a bond is called :

(A) Coupon rate (B) Par value
(C) Maturity value (D) Market value

21. Trade credit is a :

(A) Negotiated source of finance
(B) Hybrid source of finance
(C) Spontaneous source of finance
(D) Source of credit from the owners of the business

D—1707 6
22. IRR is the rate of interest :
(A) equal to the cost of capital of the proposal
(B) prevailing rate of interest in the market
(C) paid on the bonds by the firm
(D) that makes the NPV of capital proposal almost zero

23. Mutually exclusive investment proposals are those :

(A) Wherein the acceptance of one proposal leads to rejection of all other proposals
(B) That require special sources of financing
(C) That have unique features
(D) That reduce the total risk complexion of the firm

24. The technique used for classifying inventory according to the value of usage is called :
(A) XYZ Analysis (B) DCF Analysis
(C) ABC Analysis (D) DEF Analysis

25. When a consumer derives more satisfaction from a product/service than his expectation,
it is known as :
(A) Consumer satisfaction (B) Consumer delight
(C) Consumer dazzling (D) Consumer dissatisfaction

26. Classical conditioning is associated with :

(A) Repetition (B) Generalisation
(C) Discrimination (D) All

27. The process of selecting, organising and interpreting or attaching meaning to events
happening in the environment is called :
(A) Perception (B) Attitude (C) Personality (D) Learning

28. Under which concept of marketing customer remains focussed ?

(A) Marketing (B) Production (C) Product (D) Selling

29. Segmentation of consumers based on factors like climatic conditions and regions are
known as :
(A) Demographic segmentation (B) Cultural segmentation
(C) Geographic segmentation (D) Administrative segmentation

D—1707 8
30. Which city is more favourable for selling electric blankets ?
(A) Mumbai (B) Chennai (C) Shillong (D) Pune

31. Decision on plant layout and location are concerned with :

(A) System design (B) System operations
(C) System control (D) None of the above

32. Production system which enables for maximising the scale advantage is :
(A) Flow type (B) Intermittent type
(C) Batch type (D) None of the above

33. Which one of the following is the objective of production scheduling ?

(A) Where to start the operation
(B) When to start the operation
(C) How to start the operation
(D) When to start as well as stop the operation

34. SQC requires determination of :

(A) Quality tolerance limit
(B) Quantity measurement
(C) Production lead time
(D) Inventory carrying cost

35. AQL (Acceptable Quality Level) is :

(A) Maximum No. of defectives that the consumer will accept
(B) Fraction defective (f) that the user considers acceptable
(C) Fraction defective (f) that the producer considers acceptable
(D) Maximum No. of defectives that the producer will allow

36. Half percent of the letters mailed in a city have incorrect address. Out of 200 such
letters mailed in a day the probability of finding at most 3 incorrect addresses is :

e 8 1 1 1 5 1
(A) 3 (B) e (C) 6 (D) e
d 3 6 2

D—1707 10
37. If the independent variables xi (i51, 2, ..... n) are normally distributed about a common
mean, a, with a common variance s2, their mean is also normally distributed about a,
but with a variance.

(A) ns2 (B) σ2n (C) (s2)n (D) σn2

38. The two lines of regression are 3x12y526 and 6x1y531 then the mean of x is :
(A) 3 (B) 4 (C) 7 (D) 9

39. Chi-square distribution is :

(A) Continuous (B) Multimodal
(C) Symmetrical (D) None of the above

40. Mode of process in Decision support system is :

(A) Batch (B) Online
(C) Offline (D) Real Time

41. Which level of managers translate the corporate strategy into concrete objectives for
their individual business ?
(A) Corporate level (B) Multi-Business level
(C) Functional level (D) Business level

42. Which of the following books was not written by Michael E. Porter ?
(A) Competitive strategy (B) Competiting for the future
(C) Competitive advantage (D) Competitive advantages of nations

43. Which one is not the Michael E. Porter’s generic strategies ?

(A) Focus (B) Cost leadership
(C) Differentiation (D) Core competence

44. Which of the following provides directions, serves as standard for evaluating
performance and motivates members of the organisation ?
(A) Mission (B) Values (C) Objectives (D) Goals

D—1707 12
45. Sick enterprise is referred to :
(A) World Bank (B) SIDBI
(C) RBI (D) BIFR

46. Of the following, who is the most popular woman entrepreneur ?

(A) Sudha Murthy (B) Medha Patkar
(C) Kiran Mazumdar (D) Deepa Mehta

47. Which of the following is the cause of sickness of an enterprise ?

(A) Lack of adequate capital (B) Lack of demand for the products
(C) Lack of competition (D) All the above

48. Which one of the following is not the Social Responsibility of business ?
(A) Adopting villages for development
(B) Setting up educational institutes
(C) Opening research and development department
(D) Construction of temples

49. Which one of the following is not related to Business Ethics ?

(A) Environmental Ethics (B) Social Responsibility of business
(C) Profiteering (D) Ecological consciousness

50. Ethical values are derived from :

(A) Corporate objectives
(B) Organisational culture
(C) The Bible, the Kuran and the Geeta
(D) Corporate philosophy

-oOo-

D—1707 14
 MANAGEMENT
PAPER—II

Note : This paper contains fifty (50) multiple-choice questions, each question carrying
two (2) marks. Attempt all of them.

1. The demand curve of a monopolistically competitive firm is :

(A) Highly though not perfectly elastic
(B) Perfectly in - elastic
(C) Kinky demand curve
(D) Demand curve will be a straight line

2. A decision maker has to remember the proverb, “a bird in-hand is worth two in the
bush”, while he examines :
(A) Opportunity Cost Principle
(B) Discounting and Compounding Principle
(C) Marginal or Incremental Principle
(D) Equi-Marginal Principle

3. Market with one buyer and one seller is called :

(A) Monopsony (B) Bilateral monopoly
(C) Monopoly (D) Duopoly

4. Cardinal measure of utility is required in :

(A) Utility Theory (B) Indifference Curve Analysis
(C) Revealed Preference (D) Inferior Goods

5. In case of Giffen goods, price effect is :

(A) Negative (B) Zero
(C) Positive (D) 21

6. Which of the following theories state that “employees make comparison of their efforts
and rewards with those of others in similar work situation” ?
(A) Vroom’s Expectancy Theory (B) Adam’s Equity Theory
(C) Alderfer’s ERG Theory (D) Hertzberg’s Two Factor Theory

J—1708 2
7. Which of the following is a method of indicating the feeling of acceptance or rejection
among members of a group ?
(A) Mutuality (B) Simulation (C) T - group (D) Sociometry

8. Which of the following statements correctly describe ‘extinction’ ?

When a previously reinforced behaviour :
(A) is reinforced immediately (B) is reinforced for a short period
(C) is not reinforced for a long time (D) both (B) and (C) above

9. In which of the following processes a person rejects his own feelings about the other
person ?
(A) Self-analysis (B) Projection (C) Empathy (D) Denial

10. Which of the following methods avoid a win-lose attitude ?

(A) Integration (B) Domination
(C) Compromise (D) All of the above

11. In Transactional Analysis the “I am ok, you are not ok” life position is also referred to
as :
(A) Bossing (B) Avoidant (C) Diffident (D) Bohemian

12. The main objective of 3608 Appraisal is to bring :

(A) Subjectivity (B) Objectivity
(C) Uniformity of standards (D) None of these

13. At which level of PCMM the concept of competency management is brought into
workforce practices :
(A) One (B) Two (C) Three (D) Five

14. The total dedication of continuous improvement so that customers’ needs are met is
known as :
(A) Theory X (B) Theory Y
(C) Total Quality Management (D) Change Management

J—1708 4
15. The Employee Stock Ownership Plan (ESOP) was developed by :
(A) Michael Porter (B) Kaplan
(C) P. F. Drucker (D) Louis Kelso

16. When monotony in work is reduced by giving a wider variety of duties to employees,
this is known as :
(A) Job rotation (B) Job redesign
(C) Job enlargement (D) Job enrichment

17. The book “HR Champions” is authored by :

(A) Mintzberg (B) J. Pfeffer
(C) M. Porter (D) Dave Ulrich

18. The Central Trade Union CITU is associated with :

(A) Congress Party of India (B) Communist party of India Marxist
(C) Communist Party of India (D) Shiv Sena

19. One of the goals of financial management is :

(A) wealth maximisation (B) hostile take-over
(C) to raise funds from outsiders (D) none of the above

20. If bond sells at discount, the price is less than par value and :
(A) YTM 5 Coupon rate (B) YTM < Coupon rate
(C) YTM > Coupon rate (D) None of the above

21. The discount rate that equates the present value of the future net cashflows from an
investment project with the project’s initial cash outflow is known as :
(A) Average rate of return (B) Internal rate of return
(C) Cost of capital (D) Hurdle rate

22. As per pecking order theory of capital structure :

(A) Internal equity is preferred over external debt
(B) External debt is preferred over internal equity
(C) External equity is preferred over external debt
(D) None of the above

J—1708 6
23. A formal legal commitment to extend credit upto some maximum amount over a stated
period of time is known as a :
(A) line of credit (B) revolving credit agreement
(C) commitment charge (D) secured term loan

24. Economics realised in a merger where the performance of the combined firm exceeds
that of its previously separate parts is known as :
(A) Economics of scale (B) Synergy
(C) Horizontal integration (D) Leveraged buy-out

25. Macro Marketing environment refers to :

(A) Internal to the company
(B) Employees and shareholders of a company
(C) External to the company
(D) Stake holders

26. Environment scanning involves :

(A) Weather Forecasting
(B) Studying depression in a sea
(C) Identifying threats and opportunities
(D) Identifying strengths and weaknesses

27. Product mix refers to :

(A) The ingredients used for making a product
(B) Features of a product
(C) Marketing mix elements
(D) A group of products

28. Which of the following is not a stage in the new product development ?
(A) generation of ideas (B) screening
(C) market segmentation (D) commercialization

29. Industrial marketing involves :

(A) Business to Business (B) Customers to Customers
(C) Online marketing (D) Customers to Business

30. Which of the following is not included in 7 Ps of services marketing ?

(A) People (B) Products
(C) Physical Evidence (D) Public Relations

J—1708 8
31. Which one of the following is not the type of Plant Layout ?
(A) Process Layout (B) Product Layout
(C) Fixed Layout (D) Selection Layout

32. News Boy problem is related to :

(A) Queueing problem (B) Inventory problem
(C) Replacement problem (D) Linear programming problem

33. Mini Max method of decision making is done when :

(A) the problem is under risk
(B) the problem is under uncertainty
(C) the problem is of deterministic type
(D) the problem is under linear programming problem

34. Vogel’s Approximation method is used to :

(A) Study the Inventory Problem
(B) Solve the Game Theory Problem
(C) Solve the Transportation Problem
(D) Forecast demand

35. The economic order quantity q0 for a deterministic demand of D amount is given by :

q 5 2C 2 D
(A) q05(C11C2)/2 (B) 0
C1

q 5 2 C 1D q 5 2 (C 1 1C 2 ) D
(C) 0 (D) 0
C2 C2
(Where C1 is the ordering cast and C2 is the carrying cast per unit per unit of time)

36. If two dice are thrown, the probability that the sum of points is greater than 9 :
1 1 1 1
(A) (B) (C) (D)
2 3 6 4

37. If the independent variates xi (i51, 2.........n) are normally distributed about a common
mean, a, with a common variance, s2, their mean is also normally distributed about a,
but with a variance :
(A) ns2 (B) (s2)n (C) s2/n (D) s n /2

J—1708 10
38. The value of R 1.23 lies between :
(A) 21 and 11 (B) 21 and 0
(C) 0 and 1 (D) 0 and ∞

39. Chi-square distribution is :

(A) Continuous (B) Multimodel
(C) Symmetrical (D) None of them

40. E B C I D C is an :
(A) 64-bit code (B) 32-bit code
(C) 16-bit code (D) 8-bit code

41. Which one is not the part of Porter’s five force model ?
(A) Threat of new entrants (B) Firm’s core competancy
(C) Rivalry among existing players (D) Threat of substitutes

42. Which one of the following is Not a generic strategy ?

(A) Focussed Initiation (B) Focussed Differentiation
(C) Focussed Cost Leadership (D) Cost Leadership

43. Cost Leadership Strategy is related to :

(A) Corporate Strategy (B) “SBU” Strategy
(C) Functional Strategy (D) Global Strategy

44. Who is associated with the concept that competence is nothing but ‘resourcefulness’
meaning “identifying resources when there are no resources” ?
(A) Gopal C. Pati and Rabi K. Kanungo
(B) M. Maurice and F. Sellier
(C) Evans and Lorange
(D) A. Martin and G. Ross

45. Who has advanced the Motivational Analysis of Organisation :

(A) D. M. Pestonjee (B) T. V. Rao
(C) Udai Pareek (D) None of the above

J—1708 12
46. Which of the following is not a phase in Business plan preparation ?
(A) Setting business goals (B) Locating Resources
(C) Tracing Competitions (D) Developing the Labour Market

47. Arrange the following five steps of small business development in the order in which
they shall occur :
(i) Survival
(ii) Success
(iii) Existence
(iv) Resource Maturity
(v) Take-off
(A) (iii) (i) (ii) (v) (iv)
(B) (iii) (ii) (i) (iv) (v)
(C) (ii) (iii) (iv) (i) (v)
(D) (iii) (ii) (i) (v) (iv)

48. The three basic approaches to ethical behaviour namely utilitarian approach, individual
rights approach and justice approach are given by :
(A) M. Coker (B) S. Berkeley
(C) G. F. Cavanagh (D) J. Warner

49. Who had advanced the Stewardship Theory of Corporate Governance ?

(A) J. H. Davis et. al (B) D. R. Dalton et. al
(C) D. C. Hambrick et. al (D) None of the above

50. In the four classification of Social Responsibility of Business proposed by Archie Carroll,
which one of the following is not included ?
(A) Economic (B) Legal
(C) Ethical (D) Political

-oOo-

J—1708 14
 MANAGEMENT
PAPER—II

Note : This paper contains fifty (50) multiple-choice questions, each question carrying
two (2) marks. Attempt all of them.

1. The term opportunity cost refers to :

(A) Variable cost
(B) Short - run cost
(C) Cost of one product in terms of production of others sacrifised.
(D) Cost related to an optimum level of production.

2. Consumer’s Willingness to pay minus (2) actual payment is called :

(A) Producer’s surplus (B) Consumer’s surplus
(C) Supplier’s surplus (D) Utility cost

3. The pay - back period refers to :

(A) The number of years a project takes to recover its investment (original) cost.
(B) The number of instalments to make payment.
(C) The time - lag between investment and commissioning of the Project.
(D) The time required to attain break - even point.

4. In the case of Veblen goods, demand curve will slope :

(A) Upwards (B) Downwards
(C) Horizontal (D) Vertical

5. Monopolist can decide :

(A) Quantity (B) Price
(C) Either price or quantity (D) Both price and quantity

6. The conflict resulting into anxiety, tension frustration or hostility due to one’s emotional
involvement, may be termed as :
(A) Perceived Conflict (B) Manifest Conflict
(C) Felt Conflict (D) Conflict Aftermath

7. The obstruction in communication caused due to differences in individual’s interpretation

of words and symbols, is known as :
(A) Psychological Barrier (B) Social Barrier
(C) Organisational Barrier (D) Semantic Barrier

D—1708 2
8. The usual tendency with negative feedback is to find the reason to explain one’s own
behaviour. This tendency is termed as :
(A) Mutuality (B) Displacement
(C) Rationalisation (D) Projection

9. In which of the following inter - personal styles, people are critical of other’s behaviour,
develop rules and regulations and impose them on others :
(A) Rescuing style (B) Prescriptive style
(C) Normative style (D) Supportive style

10. Sometimes your behaviour results in a congruent response from other person, such
behaviour is referred to as :
(A) Perceptual defence (B) Perceptual bias
(C) Misperception (D) Response evocation

11. “Employees selected for the work should be as perfectly matched to the demand of the
job as possible.” Which of the following theories says this :
(A) Scientific Management Theory (B) Bureaucracy Theory
(C) Classical Theory (D) Traditional Theories

12. The process of studying and collecting information relating to a specific job is known
as :
(A) Job Analysis (B) Job Specification
(C) Job Description (D) Motion Study

13. The assumption that employees like work, are creative and can exercise self direction is
known as :
(A) Theory X (B) Theory Y
(C) Theory Z (D) None of these

14. The horizontal expansion of jobs is termed as :

(A) Job enrichment (B) Job enlargement
(C) Job sharing (D) Job involvement

15. The communication taking place among members of the same work group or among
members or work groups at the same level is described as :
(A) Downward Communication (B) Upward Communication
(C) Laterlal Communication (D) Parallel Communication

D—1708 4
16. An incentive plan, where improvements in group productivity determines the total
amount of money that is allocated, is described as :
(A) Profit sharing (B) Gain sharing
(C) Bonus sharing (D) None of these

17. Which of the following is related with “change in conditions of service” of a worker ?
(A) Section 9A of the ID Act (B) Section 9B of the ID Act
(C) Section 3 of the ID Act (D) Section 25 of the ID Act

18. The Central Trade Union AITUC is associated with :

(A) Bharatiya Janta Party
(B) Congress Party of India
(C) Communist Party of India (Marxist)
(D) Communist Party of India

19. The weighted average of possible returns, with weights being the probabilities of
occurrence is known as :
(A) Expected return (B) Average return
(C) Variability of returns (D) Variance of returns

20. The amount by which the face value of a bond exceeds its current price is known as :
(A) Bond premium (B) Bond discount
(C) Intrinsic value of bond (D) Future value of bond

21. The project whose acceptance precludes the acceptance of one or more alternative
projects is known as :
(A) Independent project (B) Dependent project
(C) Mutually exclusive project (D) Contingent project

22. As per CAPM cost of equity (Rj) is equal to :

– – –
(A) Rf1( R M2Rf ) Bj (B) R M1(Rf2R M ) Bj
– –
(C) Rj1( Rf2RM ) Bj (D) Bj1( R M2Rf ) Rj

23. Annual cash dividends divided by annual earnings or alternatively dividend per share
divided by earnings per share is known as :
(A) cost of equity (B) cash profit
(C) dividend - pay out ratio (D) retention ratio

D—1708 6
24. When merger is in the nature of consolidation, the accounting approach will be :
(A) Purchase method (B) Pooling of interest method
(C) Combination (D) None of the above

25. Which of the following is not element of Promotion - Mix ?

(A) Advertising (B) Sales promotion
(C) Personal selling (D) Direct marketing

26. Which of the Marketing - Mix order is correct ?

(A) price, product, place, promotion
(B) product, price, promotion, place
(C) product, price, place, promotion
(D) product, place, price, promotion

27. Which of the following coined the term 4 Ps ?

(A) Philip Kotler (B) Stanton
(C) Mc Carthy (D) Theodore Levitt

28. Which of the following PLC stages is in correct order ?

(A) introduction, adolescence, growth, decline
(B) introduction, growth, maturity, decline
(C) introduction, maturity, growth, decline
(D) introduction, growth, saturation, maturity

29. Who authored the book “positioning - the battle for the mind” ?
(A) Philip Kotler and Gary Arm Strong
(B) Theodore Levitt
(C) Peter F. Drucker
(D) AlRice and Jack Trout

30. How do you distinguish marketing and selling ?

(A) They are one and the same
(B) Marketing is a part of selling
(C) Selling is a part of marketing
(D) No relationship between selling and marketing

D—1708 8
31. In case of Product/Market, the cell showing New Product and Existing Market is referred
as :
(A) Market Penetration (B) Product Development
(C) Market Development (D) Diversification

32. Which factor need not to be considered in the location of a plant ?

(A) Management Institution (B) Availability of power
(C) Infrastructure facilities (D) Marketing facilities

33. A transportation problem will be said to be balanced if :

(A) No. of rows is equal to the no. of columns
(B) No. of warehouses is equal to the no. of factories
(C) Total supply is equal to the Total Demand
(D) Total Demand is equal to the Estimated Demand

34. In M/M/1/:/FIFO the probability that exactly n customers are in the queueing system
under steady state is :
(A) Pn5(12r)n rn (B) Pn5(12r) rn
(C) Pn5(11r)n rn (D) Pn5(11r) rn
(where r is traffic intensity )

35. PERT stands for :

(A) Project Evaluation and Renew Technique
(B) Project Evaluation and Review Technique
(C) Perfect Evaluation and Review Tactics
(D) Preferred Evaluation and Research Team

36. If a six faced dice is thrown, the probability that the number appearing on the upper
most face of the dice is an even number :
1 1 1 1
(A) (B) (C) (D)
6 3 2 4

8
37. Mean and standard deviation of a Binomial Distribution are 4 and respectively.
3
Then the values of the parameters n and p are :
2 1 1 2
(A) 4 and (B) 12 and (C) 4 and (D) 12 and
3 3 3 3

D—1708 10
38. Let the two regression lines be 5x26y19050 and 15x28y5130. Then the correlation
coefficient between x and y is :

2 1 8 5
(A) (B) (C) (D)
3 3 15 6

39. The level of significance is the probability of committing the :

(A) type I error (B) type II error
(C) standard error (D) probable error

40. The type of transmission channel which can transmit data in one direction only is
known as :
(A) Simplex (B) Half Duplex
(C) Full Duplex (D) Half Simplex

41. Which is not a generic strategy, as suggested by Micheal Porter ?

(A) Differentiation (B) Diversification
(C) Focus (D) Cost Leadership

42. Which one is not part of Ansoff’s Growth Matrix ?

(A) Focussed Development (B) Market Development
(C) Product Development (D) Diversification

43. As per “BCG” model “HOLD” strategy is used for :

(A) Dogs (B) Stars
(C) Question Marks (D) Cash Cows

44. The concept of ‘Core Competence’ is advanced by :

(A) Ghoshal and Nohria (B) Prahallad and Hammel
(C) Evans and Lorange (D) Friedman and Philips

45. Which of the following contribute to sickness of small enterprises ?

(A) Poor financial management
(B) Inadequate quality control
(C) Lack of competitive market strategy
(D) All of the above

D—1708 12
46. The name of Victor Vroom is associated with which theory of motivation ?
(A) Two factor theory (B) Equity theory
(C) Expectancy theory (D) Contingency theory

47. Which of the following is not a part of the process of business opportunity
identification ?
(A) Surveying the availability of required raw materials
(B) Identifying the flora and fauna
(C) Market survey
(D) Locating financial resources

48. The pre-conventional, conventional and principled levels of moral development

influencing business ethics is given by :
(A) J. Keogh (B) L. Kohlberg
(C) K. Kumar (D) I. Kant

49. In India the first report on Corporate Governance was given by :

(A) Narayana Murty Committee (B) Cadbury’s Committee
(C) Naresh Chandra Committee (D) Kumarmanglam Birla Committee

50. M. Friedman is associated with which philosophy of Social Responsibility of Business ?

(A) Profit Maximisation (B) Following legal provisions
(C) Adopting ethical practices (D) None of the above

-oOo-

D—1708 14
 MANAGEMENT
PAPER—II

Note : This paper contains fifty (50) multiple-choice questions, each question carrying
two (2) marks. Attempt all of them.

1. Price elasticity of demand is best defined as :

(A) The change in the tastes of consumers at different prices
(B) The rate of response of demand to a change in supply
(C) The rate of response of demand to a change in price
(D) The rate of change of demand to a change in price

2. Giffen goods are those goods :

(A) For which demand increases as price increases
(B) Which are in short supply
(C) Which have high income elasticity of demand
(D) Which give rise to a decrease in demand

3. The situation where the market consists of only two buyers, then it is called :
(A) Monopsony
(B) Duopsony
(C) Monopoly
(D) Duopoly

4. In India, which method is used to measure National Income in service sector ?

(A) Expenditure method (B) Income method
(C) Out put method (D) Value added method

5. Short run cost curves are influenced by :

(A) Principles of return to scale (B) Economies of scale
(C) Law of variable proportion (D) Diseconomies of scale

6. The term opportunity cost refers to :

(A) Variable cost
(B) Short run cost
(C) Cost of one product in terms of production of others forgone
(D) Cost related to an optimum level of production

J—1709 2
7. Which of the following is not one of the ego states of transactional analysis :
(A) Child (B) Young
(C) Adult (D) Parents

8. Where anchors are illustrations that help to define as superior, average or below average,
the behaviour of the employee, the rating scale is known as :
(A) Behavioural expectation scale (B) Behavioural observation scale
(C) Forced choice description (D) Grading scale

9. In the decision tree model of vroom and yetton the style when the leader shares the
problem with subordinates as a group, obtains collective ideas, and then makes the
decision is identified as :
(A) AI (B) AII (C) CI (D) CII

10. Leaders who provide individualised consideration and intellectual stimulation and who
possess charisma is known as :
(A) Transactional Leaders (B) Transformational Leaders
(C) Situational Leaders (D) Visionary Leaders

11. The drive to become what one is capable of becoming is :

(A) Self-Awareness (B) Self-Actualisation
(C) Self-Efficiency (D) Self-Esteem

12. Which of the following is not one of the career anchors :

(A) Managerial competence (B) Technical - functional competence
(C) Personal competence (D) Security

13. Theory “ Z ” has been propounded by :

(A) Mc Gregor (B) Ouchi
(C) Maslow (D) Skinner

14. Which of the following is not within the scope of “Adjudication” ?

(A) Conciliation (B) Labour Court
(C) Industrial Tribunal (D) National Tribunal

J—1709 4
15. Outplacement services are provided to employees who have been :
(A) Dismissed (B) Rendered surplus
(C) Retired (D) Given voluntary retirement

16. What notice period is required for going on strike/lockout in public utility services ?
(A) One week (B) Three weeks
(C) Six weeks (D) Nine weeks

17. Modifying methods of performing a job to reduce the levels of skill or skills demanded
is known as :
(A) Multi - tasking (B) De - skilling
(C) Multi - skilling (D) None of these

18. The computation of NPV is based on the assumption that :

(A) cashflows for each year remains constant
(B) net present value can never be less than zero
(C) intermediate cash flows are being reinvested at the discount factor
(D) discount factor should remain constant throughout the life of the project

19. For determination of cost of equity the formula used is :

(A) Rate of interest (1 — t)
(B) Rate of dividend (1 — t)
(C) Rate of Dividend (Face value — Issue Price)/n
D1
(D) 1g
P0

20. According to MM - Approach proposition - I, value of firm is :

(A) independent of capital structure
(B) dependent on capital structure
(C) dependent on tax-rate of the enterprise
(D) dependent on risk of the enterprise

21. A stable dividend policy indicates :

(A) Stable earning/price ratio (B) Stable price/earning ratio
(C) Stable pay-out ratio (D) Stable earning per share

22. The vertical merger represents merger of firms engaged in :

(A) The same line of business
(B) Different stages of production in an industry
(C) Unrelated lines of business
(D) All of the above

J—1709 6
23. The degree of total leverage is equal to :
(A) percentage change in EPS/percentage change in sales
(B) percentage change in EBIT/percentage change in sales
(C) percentage change in EPS/percentage change in EBIT
(D) percentage change in sales/percentage change in EBIT

24. Changes in the population characteristics such as age, gender, race, marital status,
income and education are the examples of :
(A) geographic characteristics (B) cultural characteristics
(C) psychographic characteristic (D) demographic characteristics

25. Which of the following is not constituent of promotion-mix :

(A) Advertising (B) Sales promotion
(C) Direct marketing (D) Publicity

26. Which of the following factors does not influence the pricing strategy of a firm ?
(A) Market (B) Competition
(C) Cost (D) R&D

27. Who coined the term “Marketing Myopia” ?

(A) Peter Drucker (B) Stanton
(C) Philip Kotler (D) Theodore Levitt

28. In the diffusion of innovation who are the people not willing to try out the product :
(A) Innovators
(B) Progressive people
(C) Early adopters
(D) early majority

29. Which of the following is not a variable for segmenting the market ?
(A) Sex (B) Age (C) Income (D) Sales

30. At which stage of new product development process, the launching of new product
will take place :
(A) Concept development
(B) Marketing strategy development
(C) Test marketing
(D) Commercialization

J—1709 8
31. Strategic production planning decisions include :
(A) Quality development (B) Make or Buy decision
(C) Manpower planning (D) Layout planning

32. Which one of the following is not the type of Plant Layout ?
(A) Process Layout (B) Product Layout
(C) Fixed position Layout (D) Selection Layout

33. Production control is concerned with :

(A) Establishment of Quality Standard norms
(B) Execution of production plan
(C) Expediting the production process
(D) Product Quality control

34. Critical Path Method network analyses is done with the objective of :
(A) determining the completion time for the project
(B) determining the product quality
(C) determining the production cost
(D) determining the pay-back period

35. ‘Q’ systems of inventory control provides for :

(A) Ordering the inventory when it normally equals to EOQ
(B) Ordering the inventory depending on the stock level on hand
(C) Optimization of inventory costs
(D) None of the above

36. In case of Binomial distribution, the mean is :

(A) Always greater than variance
(B) Always equal to variance
(C) Always less than variance
(D) None of these

J—1709 10
37. Car hire firm has two cars which it hires out daily. The demand for car is distributed as
Poission with mean 2. If the value of e2250.1353, the number of days out of 100 days
on which neither of the car is used are :
(A) Approximately 14 (B) Approximately 22
(C) Approximately 32 (D) None of these

38. A committee of four has to be formed from among 3 Economists, 2 Managers, 4 Doctors
and one Statistician. The Probability that all 4 professions are represented on the
committee will be :
(A) 14/35 (B) 10/35 (C) 4/35 (D) 24/35

39. Correlation Coefficient is equal to :

(A) Arithmetic mean of both regression coefficients
(B) Geometric mean of both regression coefficients
(C) Difference of two regression coefficients
(D) None of these

40. When Null hypothesis (Ho) is true and test rejects it, it is called :
(A) Type - I error (B) Type-II error
(C) Level of significance (D) None of these

41. Which element identities the strategic factors that determine the future of a firm ?
(A) Environmental Scanning
(B) Strategy Formulation
(C) Strategy Implementation
(D) Strategy Evaluation and Control

42. Which strategy provides a means for achieving a company’s annual objectives ?
(A) Marketing Strategy (B) Operating Strategy
(C) Business Strategy (D) Corporate Strategy

43. Which of the following is not a primary activity in a value chain ?

(A) Human Resource Management (B) Marketing and Sales
(C) Operations (D) Outbound logistics

44. Which one of the following represents the best long run opportunity in a firm’s business
portfolio ?
(A) Star (B) Question Mark
(C) Cash COW (D) DOG

J—1709 12
45. A firm tries to achieve the lowest cost of production and distribution so that it can set
its prices at a lower level than its competitors. Which generic strategy it is following ?
(A) Cost leadership (B) Differentiation
(C) Focus (D) All of the above

46. Which method of product portfolio analysis helps in deciding which products are to be
retained and which are not to be retained ?
(A) Ansoff’s Matrix (B) Environment Matrix
(C) BCG Matrix (D) All of the above

47. What BIFR stands for :

(A) Bureau of Industrial Financial Reconstruction
(B) Board of Industrial Financial Reconstruction
(C) Bureau of Industrial Financial Re-engineering
(D) Board of Industrial Financial Re-engineering

48. Which one of the following is not the reason for sickness of industries ?
(A) Inadequate working capital
(B) Huge Market
(C) Out dated Technology
(D) Changing tastes of consumers

49. Environmental Ethics refers to :

(A) Unfair Trade Practices (B) Pollution
(C) Product price (D) Quality of the product

50. Corporate governance includes management of :

(A) Employees (B) Organisation
(C) Society (D) All of the above

-oOo-

J—1709 14
 MANAGEMENT
Paper – II

Note : This paper contains fifty (50) Objective type questions, each question carrying
two (2) marks. Attempt all of them.

1. The elasticity of demand indicates

(A) The rate of response of demand to a change in price.
(B) The rate of change of demand to a change in income.
(C) The change in the tastes of consumers at different prices.
(D) The rate of response of demand to a change in supply.

2. A rightward shift in supply curve indicates

(A) A decrease in supply
(B) An increase in quantity demanded
(C) An increase in supply
(D) Law of variable proportion

3. Which of the following is the condition of equilibrium for the monopolist ?

(A) MR = MC (B) MC = AR
(C) AR = MC = Price (D) AC = AR

4. If the demand curve is a rectangular hyperbola, elasticity is

(A) 1 (B) 0
(C) infinity (D) less than one

5. If both supply and demand increase by the same proportion,

(A) Quantity remains constant (B) Price remains constant
(C) Price increases (D) Quantity increases

6. What leads to rationing and black marketing under perfect competition ?

(A) Price support (B) Excess demand
(C) Decrease in supply (D) Price control

7. In Maslow’s need hierarchy theory, which of the following is not high order needs ?
(A) Safety (B) Social
(C) Esteem (D) Self-Actualisation
Paper-II 2 D-1709
8. Feeling arising out of inadequate definition of roles is known as
(A) Role ambiguity (B) Role conflict
(C) Role perception (D) Role expectation

9. A type of group discussion process in which members of the group are encouraged to
generate as many imaginative and creative ideas in a relatively short period of time is
known as
(A) Brain storming (B) Group working
(C) Simulation (D) Group effect

10. The amount of satisfaction an individual anticipates from a particular outcome is known
as
(A) Theory Y (B) Theory Z
(C) Valence (D) Stress

11. A personality characteristic indicating one’s willingness to do whatever it takes to get

one’s own way is known as
(A) Locus of control (B) Machiavellism
(C) Job characteristic model (D) Personality legitimacy

12. The process of studying and collecting information relating to a specific job is known as
(A) Motion study (B) Job analysis
(C) Job specification (D) Job enrichment

13. The horizontal expansion of jobs is termed as

(A) Job enlargement (B) Job enrichment
(C) Job sharing (D) Job involvement

14. A bargaining which is based upon zero-sum game is known as

(A) Integrative bargaining (B) Principled bargaining
(C) Distributive bargaining (D) None of these

15. The final link in the communication process that puts the message back into the system
as a check against misunderstandings is described as
(A) Decoding (B) Feedback
(C) Feedback Loop (D) None of these

Paper-II 4 D-1709
16. In the ‘Managerial grid’ 9, 1 style is termed as
(A) Team Management (B) Country Club Management
(C) Authority Obedience (D) Improvised Management

17. Which of the following is not one of the 5s of housekeeping ?

(A) Sort (B) Systemize
(C) Specialize (D) Shine

18. Internal rate of return method applied for capital budgeting decision
(A) allows to take different discount factors.
(B) uses cost of capital as discount factor.
(C) may give more than one IRR.
(D) distinguishes between the IRR for lending and borrowing decision.

19. Beta in the context of security analysis indicates

(A) Systematic risk (B) Unsystematic risk
(C) Total risk (D) All of the above

20. Assuming constant rate of growth of dividend, value of share will be equal to
D0 D1
(A) P0 = r – g (B) P0 = r – g

D0 D0
(C) P1 = (D) P1 = +g
r+g r

21. Theoretically, with the issue of rights share the value of existing shares
(A) will increase (B) will not change
(C) will reduce (D) may increase or decrease

22. When the cash flow outcomes of succeeding period depends on what has happened
before, the probabilities of succeeding period are known as
(A) joint probabilities (B) conditional probabilities
(C) simple probabilities (D) decision tree

23. A high risk, high-yield often unsecured bond rated below investment grade is known as
(A) Income-bond (B) Subordinated debentures
(C) Junk bond (D) Serial bond
Paper-II 6 D-1709
24. Who coined the term 4 Ps ?
(A) Philip Kotler (B) Stanton
(C) Peter Drucker (D) Mc Carthy

25. In the buying decision process, what is the term used for a person who first suggests
buying the product ?
(A) Consumer (B) Decider
(C) Initiator (D) Influencer

26. Which of the following is in order ?

(A) Product, place, price and promotion.
(B) Price, product, promotion and place.
(C) Promotion, place, product and price.
(D) Product, price, place and promotion.

27. Which of the demographic variable is not used by marketers for demographic
segmentation ?
(A) Income (B) Gender
(C) Family life cycle (D) Poverty

28. Which of the following indicates the distinction between Advertising and Publicity ?
(A) Advertising is expensive, publicity is less expensive.
(B) Advertising is through T.V., publicity is through print media.
(C) Advertising is a paid form of communication, Publicity is not a paid form of
communication.
(D) Advertising is through film stars, Publicity is through cricketers.

29. Which of the following order about product life cycle is correct ?
(A) Introduction, Maturity, growth and decline.
(B) Introduction, growth, maturity and decline.
(C) Introduction, decline, maturity and growth.
(D) Growth, maturity, decline and introduction.

30. Companies that attack other firms including market leader in an attempt to build market
share are called
(A) Market followers (B) Market challengers
(C) Market penetrators (D) Market Nichers

Paper-II 8 D-1709
31. Tactical production planning decision includes
(A) Layout planning (B) Machine loading
(C) Production process (D) Plant location

32. Which of the following is not to be considered for plant location decision ?
(A) Availability of labour (B) Availability of power
(C) Availability of raw material (D) Brand image

33. Moving average forecasting is used to

(A) establish the trend of the past
(B) forecast the current demand
(C) forecast market competition
(D) forecast Quasi demand

34. Work measurement is essential for

(A) Labour utilization and efficiency
(B) Determining the delivery dates
(C) Introducing Financial incentive schemes
(D) All of the above

35. E O Q refers to the quantity for which

(A) fixed cost is equal to variable cost
(B) carrying cost is equal to ordering cost
(C) average cost is equal to marginal revenue
(D) total contribution minus cost of goods

36. A company is producing steel rods. Assuming that the length of steel rods follows
normal distribution with mean 10 inches & variance equal to 0.04 sq. inches. The
standard error of mean, when a random sample of 16 is taken, will be
(A) 4/10 (B) 2/20
(C) 2/40 (D) None of these

37. Judgement sampling to select the sampling units from population is termed as
(A) Probability sampling (B) Non-probability sampling
(C) Systematic sampling (D) None of these

Paper-II 10 D-1709
38. Wide area network is
(A) Network of computers spread over a small geographical area.
(B) Network of computers spread over a large geographical area.
(C) Network of computers in a room.
(D) None of these.

39. Correlation coefficient between two variables X & Y is calculated as 0.63. If the
X – 10 Y+5
measurements of X & Y are changed to U = 5 & V = 10 the new value of
correlation coefficient will be
(A) 0.063 (B) 0.315
(C) 0.63 (D) None of these

40. A person appears in an interview for a job in the two companies say X and Y. The
chances of selection in company X is 0.7 and chances of selection in Y is 0.6. The
probability of his selection in either of the two companies will be
(A) 0.42 (B) 0.88
(C) 0.50 (D) None of these

41. Which of the following helps a manager to identify the opportunities and threats in the
competitive industry environment ?
(A) Analysis of organisational structure.
(B) Analysis of competitive forces.
(C) Analysis of operations.
(D) Market Research

42. Essence of strategy at strategic Business Unit level is

(A) How to build core competency
(B) How to gain competitive advantage
(C) How to gain market share
(D) All of the above

43. Which one of the following is a primary activity in a value chain ?

(A) Operations (B) Firm infrastructure
(C) Technology development (D) Procurement

Paper-II 12 D-1709
44. Business unit which holds a large market share in a mature and slow growing industry
is called
(A) Star (B) Dog
(C) Question Mark (D) Cash cow

45. Which strategy requires a company to concentrate its efforts in one or more narrow
segments instead of broad based strategy ?
(A) Cost leadership (B) Focus
(C) Differentiation (D) None of the above

46. Which of the following is an example of an external threat ?

(A) New trade regulations (B) Global sales potential
(C) Economies of scale (D) Decreased competition

47. Which of the following has been entrusted with the responsibility of developing and
supporting small business ?
(A) IDBI (B) RBI
(C) NABARD (D) SIDBI

48. “Innovation and entrepreneurship” is a book written by

(A) Philip Kotler (B) C. K. Prahlad
(C) Pradeep Khandwala (D) Peter F. Drucker

49. Strategising within value frame work is an approach of

(A) Management (B) Administration
(C) Governance (D) Stake holders

50. Social responsibility means that a business

(A) Functions efficiently without harming the society
(B) Abjures the profit motive
(C) Keeps pollution under check
(D) Pays its Taxes to Government
________
Paper-II 14 D-1709
 MANAGEMENT
Paper – II
Note : This paper contains fifty (50) objective type questions, each question carrying two
(2) marks. Attempt all the questions.
1. During last five years per capita 6. Earnings foregone in the context of
income of India is increasing, that the best alternative is termed as
means (A) Past cost
(A) National income growth of (B) Historical cost
India is more than growth of
population. (C) Opportunity cost
(B) Growth in population is (D) Sunk cost
more than the growth in
National income of India. 7. A situation where management is
(C) National income of India & unable to provide employment due
population of India have to non-availability of work is
grown at the uniform rate.
(D) All of the above called
I. Lock out II. Lay off
2. In the short run firm considers the
minimum of its average variable III. Termination IV. Closure
cost curve as Find the correct combination
(A) Break-even point according to the code.
(B) Shutdown point (A) I & II (B) II & III
(C) Economies of scope (C) I & III (D) II & IV
(D) None of the above
3. The positive cross elasticity of 8. Which one of the settlement
demand between two products methods is not relevant here for
means disputes ?
(A) two products are substitutes
(B) two products are (A) Collective Bargaining
complementary (B) Compulsory Adjudication
(C) two products are neither (C) Voluntary Arbitration
substitutes nor (D) Reference to Civil Court
complementary
(D) none of the above
9. Which of the following shows a
4. A monopolist always operates in the situation of Trade Union rivalries
(A) Inelastic segment of its in India ?
demand curve
(B) Elastic segment of its (A) Different Unions in
demand curve different organisations.
(C) Unitary elastic segment of (B) More unions in the same
its demand curve organisation having
(D) None of the above affiliation with different
5. The price elasticity of demand for political parties and
any product in the long run representing the same type
(A) is more than it’s short run of workers.
value. (C) More unions in the same
(B) is less than its short run value.
(C) is same as its short run organisation all representing
value. different types of workers.
(D) None of the above. (D) None of the above.
Paper-II 2 J-1710
10. Reduction of Labour Force is 15. ‘X’ and ‘Y’ theory was prepared by
called (A) Herzbeg
(A) Termination (B) Maslow
(B) Retrenchment (C) Porter and Lawler
(C) Lay-off (D) McGregor
(D) Right sizing 16. Which of the following formula is
used to calculate Pay Back Period
11. The process of establishing the when cash inflows are constant ?
value of jobs in a job hierarchy is (A) Fixed Assets/Current Assets
known as (B) Fixed Assets/Current
(I) Job analysis Liabilities
(II) Job requirement (C) Initial Investment
(III) Job evaluation cost/Annual cash inflows
(IV) Performance evaluation (D) None of the above
Find the correct combination
according to the code. 17. The P/E ratio approach to stock
valuation is also known as
(A) I & II (B) II & III
(A) Earnings multiplier
(C) III & IV (D) I & IV approach
12. Which of the following is the (B) Dividend discounting
meaning of Human Resource approach
Planning ? (C) Required rate of return
(D) None of the above
(A) Evaluation of job
(B) Satisfaction of the 18. The capital structure theories
employees on the job which argue that capital structure is
(C) Appraising the performance relevant to the value of firm
of employees contain
(D) It is the process by which an I. Net Income Approach
organisation ensures that it II. Net Operating Income
has the right number and Approach
kind of people at the right III. Traditional Approach
place, at the right time. IV. Modigliani and Miller
Approach
13. Induction refers to Find the correct combination
(A) Giving training to the according to the code :
employees. (A) I & II are correct.
(B) Giving incentive to the (B) I & III are correct.
employees. (C) III & IV are correct.
(C) Introducing employees to (D) II & IV are correct.
the organisation culture and 19. Short term financing instruments
situation. may contain
(D) Increasing the morale of the I. Commercial Paper
employees. II. Public Deposits
III. Term Loans
14. Which of the following is not a IV. Trade Credit
fringe benefit ? Find the correct combination
(A) Transport according to the code.
(B) Subsidised canteen facilities (A) I, II & III are correct.
(C) Free education to the (B) II, III & IV are correct.
children (C) III & IV are correct.
(D) Dearness Allowance (D) I, II & IV are correct.

Paper-II 4 J-1710
20. For calculating weighted average
cost of capital, cost of each source
of capital is multiplied by
proportion applicable to it. The
proportions may be based on
(A) Book values only
(B) Target capital structure only
(C) Market values only
(D) All of the above
21. Which of the following is not
included in 7 P’s of services
marketing ?
(A) Process (B) People
(C) Pricing (D) Public relations
22. Which of the following is not a
stage in the new product
development ?
(A) Generation of ideas
(B) Business analysis
(C) Market segmentation
(D) Test marketing
23. Industrial marketing involves
(A) Business to Business
(B) Business to Customer
(C) Customer to Customer
(D) Retailer to Consumer
24. The concept of Marketing Myopia
is propounded by
(A) Philip Kotler
(B) C.K. Prahalada
(C) Peter Drucker
(D) Theodore Levitt
25. In which stage of product life
cycle, the company takes decision
whether to maintain, harvest or
drop the product ?
(A) Introduction (B) Growth
(C) Maturity (D) Decline
Paper-II
26. Which of the following is the best
technique to manage the existing
products ?
(A) Ansoff Matrix
(B) Balanced score card
(C) BCG Matrix
(D) Product life cycle analysis
27. Which of the following is not an
element of production management ?
(A) Plant (B) Profit
(C) Process (D) People
28. Production Management Tactical
Planning decisions include
(A) Establishing parameters for
measuring operational
efficiency and productivity.
(B) Establishing quality
specifications and test
details.
(C) Determining starting and
finishing time of each job in
the work stations.
(D) None of the above
29. Work study refers to
(A) Analysis of work into
smaller parts followed by
re-arrangement of these
parts to give the same
effectiveness at lesser cost.
(B) Analytical investigation of
the methods involved in the
work.
(C) Developing new methods to
give work effectiveness.
(D) All of the above
30. Economic lot size is known as
(A) the lot size for which the
total cost per time period is
minimum.
(B) the ordering cost and
carrying cost are minimum.
(C) the lot size that strikes a
balance between ordering
cost and carrying cost.
(D) the quantity to be ordered
each time is fixed.
6 J-1710
31. Objective of Value Engineering is 36. If X is normally distributed with
(A) Reduce cost without mean 30 and s.d. 5 and Φ(x)
reducing the quality. denotes
(B) Increase value without x
increasing the cost. 1 . –1 2
(C) Reduce cost by reducing the e 2 t dt then P(26 ≤ X ≤
quality. 2π .
o
(D) None of the above 40) and P (X ≥ 45) are given by
32. If the independent variates xi 1
(A) Φ(.8) + Φ(.2) and Φ(3) –
2
(i = 1, 2, …..n) are normally
distributed about a common mean, 1
(B) Φ(2) – Φ(.8) and – Φ(3)
a, with a common variance, σ2, 2
their mean is also normally 1
(C) Φ(2) – Φ(.8) and + Φ(3)
distributed about a, but with a 2
variance 1
(D) Φ(.8) + Φ(2) and – Φ(3)
(A) nσ2 2
σ2
(B)
n 37. What enables the management to
(C) (σ2)n find out whether the strategic
σn management process are
(D)
2 appropriate, compatible and
functioning in the desirable
33. The weak law of large numbers is direction ?
another version of
(A) Implementation control
(A) convergence in probability
(B) random number generation (B) Special alert control
(C) financial probability law (C) Premise control
(D) poisson probability law (D) Strategic control
34. The basic assumptions underlying
the t-test for the difference of two 38. Which one is not the part of Michael
sample means are that the parent Porter’s five forces model ?
populations are ___________ and (A) Threat of substitutes
population variances are (B) Firm’s core competence
___________ (C) Rivalry among existing
(A) of any shape; equal and players
known
(D) Threat of new entrants
(B) normal; equal and known
(C) normal; equal but unknown
(D) normal; unequal but known 39. Which of the following strategy is
regarded unfair ?
35. LAN stands for (A) Collusion
(A) Large Area Network
(B) Strategic alliance
(B) Local Area Network
(C) Long Accurate Network (C) Differentiation
(D) Lay Access Network (D) Turn around strategy

Paper-II 8 J-1710
40. Which of the following 46. What is the acronym for SIDBI ?
relationship strategies result into (A) Short Investment
forming of a new organisation ? Development Bank of India.
(A) Strategic alliance
(B) Partnership (B) Stock Investment
(C) Joint venture Development Bank of India.
(D) None of the above (C) Small Investment
41. A growth strategy is designed to Development Bank of India.
increase (D) Small Industries
(A) the scale and scope of the Development Bank of India.
Business operations.
(B) the corporate image of the
business. 47. Identify from the options given
(C) corporate social below, which one is not a source of
responsibility of business. business ethics ?
(D) none of the above.
(A) Religion
42. Cost leadership strategy is related
to (B) Legal system
(A) Functional strategy (C) Culture
(B) SBU strategy (D) Political system
(C) Corporate strategy
(D) Global strategy
43. Countries derive their competitive 48. Where law fails,
advantage in international trade (A) Ethics also fails
through their
(A) Comparative cost advantage (B) Ethics can succeed
(B) Contribution to the World (C) Government can protect
trade
(D) None of the above
(C) Natural endowments
(D) All of the above
44. Which analysis helps to understand 49. Which one of the options is not an
the strength and weaknesses of a ethical issue for an organisation ?
firm ? (A) Save water
(A) Environment analysis
(B) Business analysis (B) Save energy
(C) SWOT analysis (C) Save money
(D) None of the above
(D) Respect woman
45. Which one of the following is not the
social responsibility of business ?
(A) Adopting village for 50. Which of the following is an
development. example of an external threat ?
(B) Providing drinking water (A) Economies of scale
and medical facilities in
remote villages. (B) Decreased competition
(C) Construction of Temples. (C) New Trade Regulations
(D) Opening in House R & D
department. (D) Global sales potential

Paper-II 10 J-1710
 MANAGEMENT
Paper – II
Note : This paper contains fifty (50) objective type questions, each question carrying two
(2) marks. Attempt all the questions.
1. Under perfect competition in the
long run
(A) All firms earn normal
profits
(B) Few firms earn super
normal profits
(C) All firms are at break even
(D) None of the above
2. National Income at market prices is
equal to
(A) Gross national product at
market prices
(B) Gross domestic product at
market prices
(C) Net national product at
factor cost
(D) None of the above
3. If there is a single buyer, it is
called
(A) Monopoly
(B) Oligopoly
(C) Monopsony
(D) None of the above
4. Under which of the following
method the time value of money is
not considered ?
(A) Net present value method
(B) Internal rate of return
method
(C) Pay back period method
(D) All of the above
5. A firm is having increasing returns
to scale means
(A) It is having increasing costs.
(B) It is having constant costs.
(C) It is having decreasing costs.
(D) None of the above
Paper-II
6. Production can be measured in
terms of which of the following ?
(A) Total productivity
(B) Marginal productivity
(C) Average productivity
(D) All of the above
7. Which of the following is an
objective of human resource
management ?
(A) Productivity
(B) Quality of work life
(C) Organisational change
(D) All the above
8. Motivation implies that the
employees in an organisation
(A) Exert more effort to
accomplish the desired
goals of the organisation.
(B) Exert more effort to
accomplish the individual
goals.
(C) Exert more effort to
accomplish the common
goals of employees.
(D) Exert more effort to
accomplish the desired
goals of the employer,
employees and the
Government.
9. Communication can be
(A) Oral
(B) Written
(C) Oral and Written
(D) None of the above
2 D-17-10
10. Which of the following is not 15. Labour Welfare facilities were
considered as a leadership style ? incorporated in which legislation ?
(A) Task oriented leadership (A) MRTP Act
style. (B) Essential Commodities Act
(B) Society oriented leadership (C) Consumer Protection Act
style. (D) Factories Act
(C) Employee oriented 16. Job analysis involves
leadership style. (A) Job description and job
(D) Autocratic leadership style specification
(B) Job order and job
description
11. Which of the following method has
(C) Job specification and job
not been given a statutory form in
order
India ?
(D) Job satisfaction and job
(A) Conciliation description
(B) Mediation
17. Which one of the following
(C) Voluntary Arbitration represents number of years
(D) Adjudication required to recover the initial
investment ?
(A) Accounting rate of return
12. What are the operative functions of
HRM ? (B) Pay back period
(C) Internal rate of return
(A) Organising (D) Net present value
(B) Directing
(C) Controlling 18. Other things being equal, stocks
which are highly liquid command
(D) All of the above (A) Higher dividend payout
ratio
13. Which one is not a performance (B) Lower dividend payout ratio
appraisal method ? (C) Higher P/E multiples
(A) 360° performance appraisal (D) Lower P/E multiples

(B) Balanced score card 19. Weighted Average Cost of Capital

(C) Rank method may contain
(D) Interview method I. Cost of Equity
II. Cost of Debt
III. Cost of goods purchased
14. Selection of persons in an IV. Cost of initial investment
organisation is the responsibility of Find the correct combination
(A) Security Dept. according to the code :
(B) Personnel Dept. (A) I, II & III are correct.
(B) II, III & IV are correct.
(C) Trade Unions
(C) III & IV are correct.
(D) Canteen Dept. (D) I & II are correct
Paper-II 4 D-17-10
20. Long term sources of finance may
contain
I. Retained earnings
II. Inter corporate deposits
III. Debentures
IV. Preference share capital
Find the correct combination
according to the code :
(A) I, III & IV are correct
(B) II, III & IV are correct
(C) II & III are correct
(D) II & IV are correct
21. When a firm proposes to acquire
another firm, the merger proposal
may be viewed as a
(A) Working capital
management proposal
(B) Capital budgeting proposal
(C) Financing decision
(D) Dividend decision
22. Which of the following is not the
element of promotion-mix ?
(A) Advertising
(B) Place
(C) Personal selling
(D) Publicity
23. Which of the following is in
correct order ?
(A) Product, Place, Promotion
and Price
(B) Product, Promotion, Place
and Price
(C) Product, Price, Promotion
and Place
(D) Product, Price, Place and
Promotion
24. Which of the demographic
variables is not used by marketers
for demographic segmentation ?
(A) Gender (B) Age
(C) Occupation (D) Poverty
Paper-II
25. At which stage of the new product
development, the launching of new
product will take place
(A) Business Analysis
(B) Test Marketing
(C) Commercialization
(D) Marketing strategy
Development
26. If a company uses its company
name for its entire range of
products offered, then it is called
(A) Private branding
(B) Corporate branding
(C) Product-line branding
(D) Specific product branding
27. One-level channel of distribution
consists of
(A) Producer – consumer
(B) Producer – dealer – consumer
(C) Producer – dealer – retailer
– consumer
(D) Producer – dealer – wholesaler
– retailer – consumer
28. The primary role of a production
manager is
(A) To meet the production
target and delivery schedule
(B) To produce goods/services
of right quality
(C) To produce goods/services
by right quantity at the
predetermined time
(D) All of the above
29. Fixed Position Layout is used
when
(A) the operation requires heavy
tools and equipments.
(B) the operation requires only
hand tools and simple
equipments.
(C) the continuity of production
process is to be maintained.
(D) none of the above
6 D-17-10
30. Critical Path Method (CPM) is 35. If X is a random variable normally
concerned with estimation of distributed with mean u and
(A) Optimistic time variance σ2, then the mean
(B) Production lead time deviation about mean is given by
(C) Pessimistic time 1 2
(A) (B)
(D) None of the above 2π π
σ
(C) (D) 2σ
31. In a normal distribution, mean (m) 2π
± 3σ (3 standard deviation) limits
contains approximately 36. The level of significance is the
(A) 99.73% of the observations probability of committing
(B) 99.27% of the observations (A) type I error
(C) 96% of the observations (B) type II error
(D) 95% of the observations (C) standard error
(D) probable error

32. Firms choose a focus strategy to

37. Which of the following tests is
serve the needs of which of the
used to test a hypothesis about the
following ?
mean of a univariate normal
(A) Buyers group distribution with unknown variance ?
(B) Different-segment of a (A) Normal test
product line (B) Student’s test
(C) Different geographical (C) Paired t-test
market (D) Chi-square test
(D) All of the above
38. Mean and variance of Binomial
33. Which of the following is not the Distribution are
component of work study ? (A) m and σ2 (B) m and nq
(A) Work measurement (C) m and np (D) np and npq
(B) Case study (Where the terms have usual
(C) Time study statistical meaning)
(D) Motion study
39. Which of the following is the
characteristic of a strategic
34. Half percent of the letters mailed in
business unit ?
a city have incorrect addresses. Out
of 200 such letters mailed in a day, (A) It serves a homogenous set
the probability of finding at most 3 of markets.
incorrect addresses is (B) It serves a unique set of
products.
3e 8 –1
(A) (B) e (C) It owns responsibility for its
8 3
own profitability.
1 –1 5 –1
(C) e (D) e (D) All of the above.
6 2
Paper-II 8 D-17-10
40. Which one of the following is not a 46. Which of the following is the cause
generic strategy ? of sickness of an enterprise ?
(A) Cost Leadership (A) Lack of adequate capital
(B) Product Differentiation (B) Lack of demand for the
products
(C) Cost focus
(C) Lack of raw material
(D) Group focus (D) All of the above

41. A retrenchment strategy is 47. Value driven companies are

designed to reduce (A) sure to be successful in the
(A) technical losses long run.
(B) sure to be unsuccessful as
(B) financial losses
they are not maximising
(C) the scale and scope of the profits.
business operation (C) sure to become charitable
(D) all of the above institutions.
(D) none of the above
42. World Trade Organisation provides
(A) Rule based multilateral 48. Which of the following is not a
trading system. tool of corporate governance ?
(A) Preparation of financial
(B) Equity and social justice to
statements
the people.
(B) Appointment of
(C) Rule based regional trading independent directors.
system (C) Compulsory audit of
(D) All of the above financial statements.
(D) Time bound promotion of
43. Sick enterprise is referred to employees.
(A) CII (B) RBI
49. Which of the following is not the
(C) SIDBI (D) BIFR social responsibility of the business ?
(A) Promotion of Markets
44. Ethical values are derived from (B) Promotion of Green
(A) Corporate philosophy Environment
(B) Organisational culture (C) Promotion of Education
(D) Promotion of Public Health
(C) Corporate objectives
(D) The religious books 50. The Business Code of Conduct
provides guidance to managers and
45. Which of the following is not employees
related to business ethics ? (A) when they encounter an
(A) Social responsibility of ethical dilemma.
business (B) for improving their
(B) Environmental ethics technical skills.
(C) for pursuing their business
(C) Ecological consciousness goals.
(D) Profiteering (D) All of the above
Paper-II 10 D-17-10
 MANAGEMENT
Paper – II
Note : This paper contains fifty (50) objective type questions, each question carrying two
(2) marks. Attempt all the questions.

1. In the case of an inferior commodity, 5. Match the following

the income elasticity of demand is List – I List – II
(A) Positive (B) Unitary I. For a given 10 per 1. e > 1
(C) Negative (D) Infinity cent change in
price, demand
2. The slope of the iso-cost line is changes by zero per
determined by cent
(A) Prices of the two factors II. For a given 10 per 2. e = 1
cent change in
(B) Productivity of the two price, demand
factors
changes by 5 per
(C) Degree of substitutability of cent
the two factors
III. For a given 10 per 3. e < 1
(D) None of these cent change in
price demand
3. Which one of the following changes by 10 per
statements is correct or more cent
nearly correct ? IV. For a given 10 per 4. e = 0
(A) An increase in the price of cent change in
commodity represents a fall price, demand
in its value changes by 20 per
(B) Value has nothing to do cent
with the price Code :
(C) If the price of a commodity I II III IV
falls, its value relative to (A) 3 1 2 4
other goods does not change
(B) 4 3 2 1
(D) The price of a good is its
(C) 1 2 3 4
value measured in terms of
money (D) 2 3 1 4

4. The important macro-economic 6. Long – lasting beliefs about what

aggregates are is important in a variety of
(A) Aggregate Consumption situations, that guide our decisions
and actions are :
(B) Gross Domestic Capital
Formation (A) values
(C) Gross Domestic Savings (B) ethical dimensions
and GNP (C) priorities
(D) All of the above (D) desires
Paper-II 2 J-17-11
7. Figure – Ground Theory explains 12. In ‘delegation’
the process of (A) Only authority is delegated
(A) Cognition (B) Sensation not responsibility
(C) Perception (D) Motivation (B) Both authority and
responsibility are delegated
8. Successive re-inforcements
(C) Only responsibility is
resulting in desired behaviour are
delegated, not authority
(A) mentoring
(B) motivation (D) Neither responsibility, nor
(C) shaping authority is delegated
(D) behaviour-modification
13. Cross-functional groups that
9. Psychological contract is related to operate across space, time and
(A) job – person fit organisational boundaries with
(B) role – person fit members who communicate
(C) organisation – person fit mainly through information
(D) none of the above technologies are
(A) telecomputers
10. Equity is called as (B) virtual teams
(A) equality of all (C) teleworkers
(B) standard performance (D) telemarketers
(C) comparative sense of justice
to self
(D) none of the above 14. Career resilience means
(A) Ability to switch careers
11. The distinction between ‘job (B) Ability to remain with same
enrichment’ and ‘job enlargement’ competencies refining
is suitably for organizations
(A) semantics (C) Lack of capacity to remain
(B) ‘job enrichment’ is vertical in career
loading while ‘job
enlargement’ is horizontal (D) None of the above
loading
(C) ‘job enrichment’ is the 15. Lock out means
outgrowth of Hertzberg’s
theory while ‘job (A) An antithesis of strike
enlargement’ is of (B) Refusal to employ any
Maslow’s orientation. person in employment
(D) ‘job enrichment’ is more for (C) the temporary closing of a
the individual and the other place of employment
is more of organisation
making (D) Illegal strike

Paper-II 4 J-17-11
16. Which is the task of a finance 20. Match the following
manager ? List–I (items / List – II (used
(A) Investment decision method) / Application)
(B) Dividend decision I. Rate of 1. Capital
(C) Management of income return budgeting

(D) All of the above method

II. Purchase 2. Merger
consideration
17. Which method of capital budgeting
III. Diminishing 3. Depreciation
focuses on liquidity of a project ?
Balance
(A) Net present value
Method
(B) Profitability index
IV. Fifo 4. Stock
(C) Payback period Method valuation
(D) Internal rate of returns Code :
I II III IV
18. Which statement is true about deep (A) 1 3 2 4
discount bonds ?
(B) 3 2 4 1
(A) These are in the form of low
(C) 1 2 3 4
interest bonds
(D) 1 4 3 2
(B) These bonds are sold at a
discounted value and on
maturity face value of the 21. Arrange the following steps of a
bond is paid to the investors five-stage model of the consumer
(C) There is no interest payout buying process :
during lock-in period I. Evaluation of Alternatives
(D) None of the above II. Need Arousal
III. Information search
19. Financial leverage is IV. Purchase Decision
EBIT V. Post Purchase behaviour
(A) Sales × 100
EBIT Code
(B)
EBT (A) IV, II, III, I, V
Sales (B) III, II, I, IV, V
(C)
Fixed Assets
Profit (C) I, II, IV, III, V
(D) × Capital
Sales (D) II, III, I, IV, V
Paper-II 6 J-17-11
22. It refers to the total number of 24. Match List-I and List-II.
List – I List – II
items in the Product Mix. It is (Characteristics (Marketing
known as following. of Services) Strategy applied
considering a
(A) The width of product mix characteristic of
service)
(B) The length of product mix
I. Intangibility 1. Preparing a
(C) The depth of product mix service blue
print showing
(D) The consistency of product each service
mix and process in
a flow chart.
II. Inseparability 2. Tangiblize the
23. Given below are two statements, intangible
III. Variability 3. To train more
one labelled as Assertion (A), and
service
the other labelled as Reason (R). providers and
State the correct answer from code build up client
given below. confidence.
IV. Perishability 4. Use differential
Assertion (A) : Pure-click pricing
companies can be search Code :
I II III IV
engines, Internet service
(A) 2 1 3 4
providers, commerce sites, (B) 2 3 1 4
transaction sites, content (C) 1 3 2 4
sites and enabler sites. (D) 2 1 4 3
Reason (R) : Pure-click
25. A diverse collection of incentive
companies are those tools designed to stimulate quicker
companies that have buying of a particular product or
launched a website without service by consumers or the trade
is known as
any previous existence as a
(A) Advertising
firm. (B) Personal selling
Code : (C) Publicity
(D) Sales promotion
(A) (A) is correct, but (R) is
wrong. 26. Which of the following
departments is not directly affected
(B) Both (A) and (R) are correct. by the facilities location decision ?
(C) (A) is wrong, but (R) is (A) Production / operations
(B) Marketing
correct.
(C) Personnel
(D) Both (A) and (R) are wrong. (D) Finance

Paper-II 8 J-17-11
27. Ship building and construction of 31. The probability that a contractor
dams and bridges are typical 2
will get a plumbing contract is 3
examples of
and that he will get an electric
(A) Fixed position layout 4
contract is 9 . If the probability of
(B) Functional layout
his getting at least one of the two
(C) Product layout 4
contracts is 5 , then the probability
(D) Project type layout
that he will get both contracts is
(A) 10/45
28. If unit item cost = Rs. 10, monthly
carrying charge = 3 per cent, (B) 8/27
monthly demand = 100 units and (C) 14/45
ordering cost = Rs. 20 per order, (D) 26/45
the EOQ is :
(A) 11.45 32. If a random variable X follows
(B) 400 Poisson distribution such that
P(X = 1) = P(X = 2), then the mean
(C) 115.4 of the distribution is
(D) 33.3 (A) 1 (B) 2
(C) 3 (D) 4
29. In managing a project, a network is
better suited than Gantt chart 33. The value of R1.23 lies between
because
(A) –1 and +1
(A) It can be updated more (B) –1 and 0.0
easily
(C) 0.0 and +1
(B) It clearly brings out the (D) – 0.5 and + 0.5
interdependencies between
the different activities
34. A source programme is
(C) Both (A) and (B)
(A) a programme written in
(D) None of the above machine language
(B) a programme to be
30. The aggregate production plan translated into machine
spans language
(A) Short time horizon (C) the machine language
translation of a programme
(B) Intermediate time horizon written in high-level
(C) Long time horizon language
(D) None of the above (D) none of the above
Paper-II 10 J-17-11
35. Processing data in groups collected 40. If two or more companies are
over periods of time is known as merged and only one of them
(A) Time - sharing survives while others loose their
independent entity, it is referred to
(B) Batch processing as
(C) Real – time processing (A) Merger
(D) Multi – processing (B) Absorption
(C) Amalgamation
36. “We must forget to learn and learn (D) Combination
forgetting” is ascribed to
(A) Tom Peters 41. The MSMED Act, 2006 classified
(B) Peter F. Drucker enterprises broadly into
(C) Abraham S. Maslow (A) Two categories
(D) Garry Hamel (i) Manufacturing
enterprises and
(ii) Service enterprises
37. In highly competitive environment
an organization to achieve (B) Three categories
sustained success should be (i) Micro enterprises
(A) Better (ii) Small enterprises
(B) Bigger (iii) Medium enterprises
(C) Four categories
(C) Resilient
(i) Micro enterprises
(D) None of the above
(ii) Small enterprises
(iii) Tiny enterprises
38. Corporate governance is about
(iv) Medium enterprises
(A) Crafting the strategy
(D) Four categories
(B) Compliance with regulatory
(i) Tiny enterprises
regime
(ii) Micro enterprises
(C) Satisfying the stakeholders
(iii) Small business
(D) governing the company in enterprises
the interest of government
(iv) Medium enterprises
in power

42. Which sector is called as Primary

39. Strategic planning is about Sector in India ?
(A) Strategic thinking (A) Industrial sector
(B) Strategic programming (B) Service sector
(C) Tactical Planning (C) External sector
(D) Portfolio Planning (D) Agricultural sector
Paper-II 12 J-17-11
43. How many times the census of 47. Situations in which individuals are
registered Micro, small and required to define right and wrong
medium Enterprises (MSMEs) conduct to be complied with are
have been made by Small called as following
Industries Development (A) Ethical climate
Organisation (SIDO) ? (B) Ethical dilemmas
(A) 1 (C) Code of Ethics
(D) None of the above
(B) 2
(C) 3 48. Arrange the following steps of a
simple ethics programme
(D) 4
I. Walk the talk
II. Size up your company’s
44. EDII is situated at current ethics
(A) New Delhi III. Train your people
IV. Solicit feedback from your
(B) Ahmedabad
employees
(C) Patna V. Create a code of conduct
(D) Kolkata Code :
(A) V, I, IV, II, III
45. Industrial Policy of which year (B) II, V, IV, III, I
(C) II, V, III, IV, I
contained for the very first time a
(D) II, IV, III, II, I
special thrust on measures for
promoting and strengthening small 49. Who is involved in ‘Shoplifting’
tiny and village enterprises from the following ?
(A) 1956 (A) Producer
(B) 1991 (B) Seller
(C) Consumer & or a customer
(C) 1948 (D) None of the above
(D) 1977
50. Match List-I with List-II.

46. Members of organizations are List – I List – II

(Ethical Issue) (Stakeholder
increasingly finding themselves affected)
facing situations in which they are I. Unsafe working 1. Customers
required to define right and wrong conditions
conduct. It is most aptly called as II. Product safety 2. Society
following III. Environmental 3. Employees
(A) Environmental issues of Pollution
ethics IV. Following local 4. Host
(B) Social responsibilities of laws Country
business Code :
I II III IV
(C) Corporate governance & (A) 2 4 3 1
ethics (B) 3 1 2 4
(D) Ethical Dilemmas of (C) 1 3 4 2
business (D) 3 2 1 4

Paper-II 14 J-17-11
 MANAGEMENT
Paper – II
Note : This paper contains fifty (50) objective type questions, each question carrying two
(2) marks. Attempt all the questions.

1. Consider a demand curve which 4. Match the following :

takes the form of a straight-line List – I List – II
cutting both axes. Elasticity at the
I. Responsiveness 1. Income
mid-point of the line would be
of demand to elasticity
(A) 0 change in price of demand
(B) 1.0 II. Responsiveness 2. Price
(C) 1.5 of demand to elasticity
change in tastes of demand
(D) 2.0
III. Responsiveness 3. Cross
of demand to elasticity
change in of demand
2. Price taker firms
income
(A) Advertise to increase the
IV. Responsiveness 4. Taste
demand for their product
of demand to elasticity
(B) Do not advertise, because most change in price of demand
advertising is wasteful. of related goods
(C) Do not advertise because they Codes :
can sell as much as they want I II III IV
at the current price.
(A) 1 2 3 4
(D) Who advertise will get more
profits than those who do not. (B) 4 3 1 2
(C) 3 4 2 1
(D) 2 4 1 3
3. OPEC is an example of the type
of producer’s organisation known
as a 5. Opportunity costs are also known as
(A) Marketing Board (A) Spill-over costs
(B) Producer’s Co-operative (B) Money costs
(C) Trust (C) Alternative costs
(D) Cartel (D) Sunk costs
Paper-II 2 D-17-11
6. Employees with high self-esteem set 10. Nominal group technique is
(A) higher goals for others (A) a consensus planning tool,
(B) higher goals for themselves generally used by groups to
and lower goals for others discuss, debate and decide on
(C) higher goals for themselves issues of strength-
(D) None of the above identification, problems and
solutions.
7. Need for achievement goes with (B) a consensus planning tool to
(A) F.W. Taylor arrive at decisions on issues,
(B) Hertzberg for instance man-power
requirement, by involving
(C) McGregor group of experts through blind
(D) McClelland rounds of communication
(C) a majority based decision
8. An organizational memory includes making tool
the following except
(A) Information that employees (D) None of the above
possess
(B) Knowledge embedded in the
organisation’s systems and 11. Which pattern reflects a pure
structures executive form of management ?
(C) Documents (A) Functional
(D) Knowledge that is not
documented (B) Line
(C) Line and Staff
9. People should be held accountable (D) Committee
for their own behaviour, and if
holding people accountable for their
own behaviour entails capital
punishment, then so be it. However, 12. “A place for everything, everything
no person should be held in its place” is
accountable for behaviour of others
over which he or she had no control. (A) American Management
Which of the following is the most (B) 5s Practice
logical conclusion of the argument
above ? (C) Peter Principle
(A) People should not be held (D) A Chinese Practice
accountable for the behaviour
of other people.
(B) People have control over their 13. ‘Appreciative Enquiry’ is
behaviour.
(C) People cannot control the (A) Psychological Theory
behaviour of other people. (B) Training Method
(D) Behaviour that cannot be
controlled should not be (C) Business etiquette
punished. (D) HR Quality
Paper-II 4 D-17-11
14. Robert Keplan is associated with 19. When borrowing is less than equity,
(A) A Benchmark Practice the company is said to be

(B) Balanced Score Card (A) Trading on equity

(C) Kaizen (B) Trading on thick equity

(D) Quality of Life (C) Trading on thin equity
(D) None of these
15. Strategic Intent of an Organization
should clearly spell out 20. Match the following :
(A) Who we are
List – I List – II
(B) Where are we going in the
(Types of Debt) (Elements)
long term
(C) How will we measure the I. Secured 1. Mortgage on
performance debt Assets
(D) All of the above II. Unsecured 2. Non-mortgage
debt on Assets

16. In an endeavour to maximize III. Convertible 3. Option

corporate value, a finance manager debt
has to factor in the following IV. Redeemable 4. Payment
(A) Optimization Principle debt
(B) Risk-return Principle Codes :
(C) Marginal Principle I II III IV
(D) All the above (A) 1 3 2 4
(B) 2 1 3 4
17. The term financial engineering is (C) 3 1 4 2
related to
(D) 1 2 3 4
(A) Cost of production
(B) Financial restructuring
21. It is a set of procedures and sources
(C) Product planning
used by managers to obtain
(D) Capital issue everyday information about
developments in the marketing
18. Value of the merged firm shall be environment. It is known as
(A) Less than the acquired firm (A) Internal Records System
(B) More than the acquirer (B) Marketing Intelligence System
(C) Greater than the target and the (C) Marketing Research System
acquirer (D) Marketing Decision Support
(D) None of the above System
Paper-II 6 D-17-11
22. Match the List – I with List – II : 24. Company’s ability to provide
individually differentiated product
List – I List – II for each consumer is called as
(Stage of the (Marketing (A) Digitalization
product life strategy applied
(B) Disintermediation
cycle) in the stage of
the product life (C) Customerization
cycle) (D) Connectivity
I. Introduction 1. Market
Stage Modification
25. The qualitative value of an exposure
II. Growth 2. Rapid through a given medium is related to
Stage Skimming (A) Reach
Strategy
(B) Frequency
III. Maturity 3. Enter New
(C) Impact
Stage Market
Segments (D) All of the above

IV. Decline 4. Continuation

Stage Strategy 26. When work stations are arranged
Codes : according to the progressive steps by
which the product is produced, it is
I II III IV called a
(A) 3 2 4 1 (A) Functional layout
(B) 2 3 1 4 (B) Process layout

(C) 2 3 4 1 (C) Job shop layout

(D) Product layout
(D) 4 2 1 3

27. If for a demand process suited to

23. It has been described as a cluster of a = 0.1 we try to fit a forecasting
complementary goods and services procedure with a = 0.3, the forecast
that are closely related in the minds will
of consumers but are spread across a
diverse set of industries. It is known (A) Show large swings up and
as down
(B) Follow the demand better,
(A) Market Place
consequently reducing forecast
(B) Market Space errors
(C) Meta-Market (C) Show a pronounced behaviour
(D) Marketing Mix (D) None of the above

Paper-II 8 D-17-11
28. CRAFT considers exchanges of 32. The level of significance is the
locations for those departments probability of committing the
which (A) Type I error
(A) have the same area (B) Type II error
(B) have a common border (C) Standard error
(D) Probable error
(C) either (A) or (B)
(D) have same costs per unit of
distance 33. The two lines of regression are
3x + 2y = 26 and 6x + y = 31 then
the mean of x is
29. If the ordering costs are (A) 3 (B) 4
over-estimated by 50 percent and (C) 6 (D) 7
carrying costs are under-estimated
by 50 percent, the total annual cost
will exceed the optimum cost by 34. For which distribution(s) Mean and
Median are equal ?
(A) 73.2 per cent
(i) Binomial Distribution;
(B) 50 per cent
(ii) Poisson Distribution;
(C) 0 per cent (iii) Exponential Distribution; or
(D) 150 per cent (iv) Normal Distribution
Codes :
30. PERT/CPM network analysis can be (A) (i)
used for (B) (ii)
(A) Project appraisal (C) (i) & (iii)
(B) Project implementation (D) (ii) & (iv)

(C) Project monitoring and control

35. The type of transmission channel
(D) All of the above which can transmit data in one
direction only is known as
2 1 1 (A) Simplex
31. If P(A) = 3 , P(B) = 2 , P(A/B) = 3 , (B) Half Duplex
then the value of P(B/A) is (C) Full Duplex
1 (D) Half Simplex
(A)
2
1 36. Eliminate – reduce – raise – create
(B) grid is germane to
3
(A) Competitive Strategy
1
(C) 4 (B) Blue Ocean Strategy
1 (C) Red Ocean Strategy
(D) 5 (D) None of the above
Paper-II 10 D-17-11
37. Match the following : 41. Service Sector is also called
List – I List – II (A) Primary Sector
I. Ansoff 1. Case (B) Secondary Sector
competency (C) Tertiary Sector
II. C.K. Prahlad 2. Management (D) None of the above
by Objectives
III. Peter F. 3. Cascade 42. The definition of Micro, Small and
Drucker Approach Medium Enterprises (MSMEs) in
IV. Alfred 4. Structure India is based on
Chandler follows (A) Total Sales of the Unit
Strategy (B) Investment in machines and
Codes : equipments
I II III IV (C) Market coverage
(A) 1 3 2 4 (D) Export capacity
(B) 2 3 1 4
(C) 3 1 2 4 43. Which one of the following agencies
has the power to declare any
(D) 4 2 3 1
industrial unit as a potentially sick
unit ?
38. Growth strategy requires that a firm (A) BIFR (B) SIDBI
should (C) IRCI (D) FICCI
(A) realign its product market
environment 44. The headquarters of the SIDBI is in
(B) acquire new firm (A) Mumbai
(C) go for new product (B) Lucknow
development
(C) New Delhi
(D) expand the market
(D) Hyderabad

39. Michael Porter’s five forces model

belongs to 45. In MSMED Act, 2006, the
(A) Planning School investment limit for Micro, Small
and Medium Enterprises have been
(B) Positioning School
prescribed as
(C) Cognitive School
(D) Competitive Strategy School (A) 10 lakhs, 5 crores and 10
crores
40. The theory of business of an (B) 5 lakhs, 1 crore and 10
organization is embodied in crores
(A) Vision (C) 5 lakhs, 1 crore and 5
(B) Mission Statement crores
(C) Objectives (D) 10 lakhs, 10 crores and
(D) Policies 15 crores

Paper-II 12 D-17-11
46. The study of moral principles or 48. An organization’s moral obligation
values that determine whether
actions are right or wrong and toward all of its stakeholders is
outcomes are good or bad refers to referred as following :
following :
(A) Quality (B) Ethics
(C) Opinions (D) Controls (A) Value in workplace

47. Match List – I with List – II : (B) Corporate social responsibility

List – I List – II
(Terms (Conceptual (C) Ethical behaviour
relating to description of
Ethics) terms relating to
Ethics) (D) Professionalism
I. Ethical 1. Each society’s
Climate view of ethics
must be
considered
legitimate and 49. ________is the manager’s dilemma
ethical when he has to decide on the
II. Ethical 2. There are basic
Relativism moral principles commercial proposal submitted by
that transcend his son.
cultural and
political
boundaries (A) Favouritism
III. Ethical 3. People pick-up
Universalism subtle hints and (B) Moral Dilemma
clues that tell
them what
(C) Conflict of Interest
behaviour is
approved and
what is (D) None of the above
forbidden.
IV. Ethical 4. There are grow-
Convergence ing pressures on
international 50. “Make use of paper bags instead of
business to plastic bags.” It is related to
follow the same
rules in managing
ethical behaviour (A) Environmental Ethics
and social
responsibility (B) Green Marketing
Codes :
I II III IV (C) Socially Responsible
(A) 3 1 2 4
(B) 1 3 2 4 Marketing
(C) 1 4 3 2
(D) 4 1 2 3 (D) Social Marketing

Paper-II 14 D-17-11
 MANAGEMENT
Paper – II
Note : This paper contains fifty (50) objective type questions, each question carrying two (2)
marks. Attempt all the questions.

1. Cardinal measure of utility is required 5. Match List-I with List-II and select the
in correct answer using the codes given
below the lists.
(A) Utility Theory
List – I List – II
(B) Indifference Curve Analysis
(Demand (Steps involved)
(C) Revealed Preference Estimation
(D) Inferior Goods Method)
(a) Customer 1. Consumers
Interview Interview
2. A Right-ward shift in Demand Curve Method
indicates
(b) Market 2. Time series
(A) A decrease in supply Experiment or Cross
Method Section Data
(B) An increase in quantity supplied
(C) An increase in supply over the (c) Regression 3. Market
previous year Method Stimulation
(D) Law of Variable Proportions (d) Demand 4. Market
Forecasts Experiments’
Survey
3. Which of the following is the condition Codes :
for equilibrium for Monopolist ?
(a) (b) (c) (d)
(A) MR = MC
(A) 1 3 4 2
(B) MC = AR
(B) 1 3 2 4
(C) MR = MC = Price
(C) 2 4 3 1
(D) AC = AR
(D) 4 2 1 3

4. Giffen goods are those goods 6. Who divided all activities of the
(A) for which demand increases as organisations into six groups ;
price decreases Technical, Commercial, Financial,
Security, Accounting and Managerial ?
(B) which are in short supply
(A) Peter Drucker
(C) which have high elasticity of
demand (B) D. E. Mc Forland
(D) which gives rise to a Cob-Web (C) Henry Fayol
situation. (D) George R. Terry
Paper-II 2 J-17-12
7. What are the elements that a Mission 10. During his days at Midvale Steel
Statement of an Organisation should Company F.W. Taylor saw that
include ? employees soldiering – deliberately
(A) Self guidelines for Business working at a pace slower than their
Operations capabilities. He identified that, worker
(B) Identifies the reasons for indulge in soldiering primarily for the
existence of a company and its following reasons :
responsibilities to the stake-
(A) Fear of losing jobs if they
holders.
increase their output.
(C) Identifies the firms’ customers (B) Faulty wage systems.
and their needs and matches
them to the products and (C) Out-dated methods of working
services. (D) All of the above
(D) All of the above (A), (B) and
(C). 11. Among the best known trait
approaches to personality measurement
8. Changes in population characteristics – column A gives Traits and column B
such as age, gender, race, marital states the name of authority defining
status, income and education are them. Match the correct combination
examples of change : Traits Author
(A) Demographic (A) 20 + needs Murray
(B) Cultural (B) 16 traits Eysenck
(C) Geographic (C) 3 traits Cattell
(D) Diversity (D) 5 traits Costa & Merree

9. Which of the following is not included 12. “Third Party intervention” as “Conflict
as Micro-Environmental Variables ? Resolution” is
(A) Prevailing economic and (A) often required
political conditions.
(B) seldom required
(B) Emerging new technologies
(C) required as a mandate, when
(C) Financial conditions and culture
conflict remains unresolved
(D) None of the above
(D) not at all considered as an option

Paper-II 4 J-17-12
13. The policy of introducing “New 17. Which of the following is the main
Blood” is assumption of Waltar Valuation Model ?
(A) All financing is done through
(A) Steriotypic
Retained earnings and external
(B) Bureacratic as well as redtapic sources of funds.

(C) Innovative and challenging, (B) With additional investment the

making the corporate dynamic
(D) Innovative, challenging,
often resisted
firms business risk will change.
(C) There is a change in the key
but variables such as EPS and DPS
(D) None of the above

14. An “Assessment Centre” is 18. Which of the following is an important

money market instrument ?
(A) A place (A) Debentures
(B) A technique (B) Commercial Paper
(C) Both (A) and (B) (C) Public Deposits
(D) None of the above
(D) None of the above

19. The method of payment in Mergers

15. “Organizational learning” and and Acquisitions may include
“Learning organization” are (i) Cash
(A) Same (ii) Loan stock
(iii) Ordinary shares
(B) Different
(iv) Convertible loan stock
(C) Reverse to each other (A) (i) & (iii) only
(D) Complementary to each other (B) (i) & (ii) only
(C) (i), (ii), (iii) and (iv)
(D) (ii) & (iv) only
16. The value of the firm is maximized
when the
20. Working capital refers to the capital
(A) Market price of equity share is mobilised for meeting
maximum (A) Long-term financial needs of the
(B) Market price of equity share is company
minimum (B) To meet day-to-day financial
obligations of the company
(C) Market value of debt is
(C) To meet the future financial
maximum requirements of the company
(D) None of the above (D) None of the above

Paper-II 6 J-17-12
21. Which of the following statement is 24. Marketing research does not normally
true ?
(A) Gather environmental information
(A) The essence of marketing is a
(B) Provide a continuous source of
transaction of an exchange.
information
(B) Marketing–orientation is
(C) Relate to all aspects of
philosophy, which has to
marketing operations
pervade the organisation
structure (D) Describe the current situation
(C) Marketing is also a managerial
function involving analysis,
25. Which of the following is not included
planning and control marketing
in 7 P’s of services marketing ?
activities in an organisation
(A) Physical evidence
(D) All of the above
(B) People

22. A marketing plan is composed of three (C) Process

basic components, namely (D) Marketing plan
1. Objectives 2. Policies
3. Program 4. Procedure
26. Which of the following is not the type
5. Hints 6. Decision of Plant Layout ?
7. Command 8. Periodic (A) Product Layout
9. Diversity
(B) Process Layout
(A) 1, 2 and 3 only
(C) Fixed Position Layout
(B) 6, 7 and 8 only
(D) Residential Layout
(C) 5, 7 and 9 only
(D) 2, 3 and 9 only
27. Which of the following factor is
considered in the selection of a plant
23. Which of the following is not the stage
location ?
of new product development ?
(A) Idea Generation (A) Source of Raw-materials

(B) Business Analysis (B) Availability of water

(C) Test Marketing (C) Marketing facilities

(D) Market Segmentation (D) All the above
Paper-II 8 J-17-12
28. Work measurement refers to 32. Two variables are said to be perfectly
(A) the length of time it takes to negatively correlated if
complete a work task assigned to
a specific job (A) Covariance between them is
(B) improving work methods positive
(C) arrangement of machines
according to sequence of (B) Coefficient of correlation
operations between them is –1
(D) planning the work and working
the plans (C) Covariance between them is
negative
29. The Graphical method can be used to
(D) None of the above
solve
(A) A linear programming problem
with all integer data base.
(B) A linear programming problem 33. Which type of sampling is appropriate
with two decision variables. when the population consists of well
(C) Any linear programming defined groups such that the elements
problem. within each group are homogeneous
(D) A transportation problem with and between each group they are
two origins and two destinations.
heterogeneous ?

30. If two dice are thrown, the probability (A) Cluster Sampling
that the sum of their points is greater
than 10 is (B) Simple Random Sampling
(A) 1/9
(C) Stratified Sampling
(B) 1/12
(C) 1/3 (D) Judgement Sampling
(D) 1/18

31. A Binomial distribution is 34. Which of the following is not a type of

characterized as β (16,0.5) i.e. sample internet connection ?
size is 16 and the probability of
success is 0.5. The mean and variance (A) ISDN
of this distribution will be respectively
(A) 8, 4 (B) Dial-up
(B) 8, 8
(C) Leased-Line
(C) 4, 8
(D) 4, 4 (D) ISP

Paper-II 10 J-17-12
35. Match the following : 38. Globalization involves
List – I List – II (A) Free flow of technology from
(I) Poisson 1. Its mean is one country to another
distribution has greater
the property that than (B) Free flow of investment from
Variance one country to the other
(II) Normal 2. Symmetric (C) Free flow of people from one
distribution is a distribution country to the other
(III) Chi-square 3. Positively
distribution is (D) All the above
skewed
distribution
(IV) Binomial 4. Its mean 39. Which is a short-term strategy for a
distribution has and firm ?
the property that variance
(A) Corporate strategy
are equal.
Codes : (B) Business strategy

(I) (II) (III) (IV) (C) Company mission

(A) 4 2 1 3 (D) Functional strategy
(B) 4 2 3 1
(C) 1 2 3 4
40. Which is not a global entry strategy ?
(D) 2 4 3 1
(A) Exporting

36. WTO come into being in the year (B) Joint venture

(A) 1975 (C) Merger and Acquisition

(B) 1985 (D) Blue ocean strategy
(C) 1995
(D) 2001
41. Which one is not the characteristic
feature of Entrepreneurship ?
37. Which of the following is not Porter’s
generic strategy ? (A) Vision
(A) Focus (B) Risk Bearing
(B) Cost Leadership
(C) Initiative and Drive
(C) Differentiation
(D) Disloyalty
(D) Market segmentation

Paper-II 12 J-17-12
42. Which of the following organisations 47. Whistle-Blowers are
is meant for promoting small scale
industries at district level ? (A) to be removed from the jobs
(A) SIDBI (B) to be promoted
(B) DIC (C) to be rewarded for the
(C) SFCs organisational enrichment
(D) NABARD (D) to be protected since they intend
to bring out truth
43. The reason for sickness of small scale
industry is
(A) Lack of capital 48. Funding through Micro finance to
Small and Micro Enterprises is not
(B) Lack of market
successful due to
(C) Severe competition
(A) High rate of interest
(D) All the above
(B) Out sourcing of method of
providing Micro Finance
44. The measure taken by Government to
promote small scale industry. (C) (A) & (B)
(A) Provision of land
(D) None of the above
(B) Provision of marketing facilities
(C) Arrangement of credit and raw
materials 49. “Work-Diversity” by nature, does not
(D) All the above go against Ethics. But an executive
assistant while getting transferred from
“stores” to “despatch” section created
45. Small and medium enterprises are turmoil in the office. He is
(A) Labour intensive
(A) Most ethical in his deal
(B) Capital intensive
(C) Market leader (B) Fully against work ethics
(D) Industry price determiner (C) He is workoholic
(D) A Rigid employer, hard nut to
46. Business propositions are to be crack
selected by making an analysis that,
how much the local resources will be
depleted in the commencement and the 50. Ethical Management is
course of Business. This is known as
(A) Sensitivity Analysis (A) A Compromise
(B) Common Property Resource use (B) A Compulsion
(C) Environmental Impact Assessment (C) A Judgement
(D) None of the above
(D) (A) and (B)

Paper-II 14 J-17-12
 MANAGEMENT
Paper – II
Note : This paper contains fifty (50) objective type questions, each question carrying two (2)
marks. Attempt all the questions.

1. The term Opportunity Cost refers to 5. Match List – I with List – II and
select the correct answer using the
(A) Variable Cost
codes given below the lists :
(B) Short-run cost List – I List – II
(C) The cost forgone in favour of a. Cost Function 1. Kinky
production of another product Demand
(D) Cost related to an optimum Curve
level of production b. Supply 2. Isoquants
Function
c. Production 3. Engineering
2. If two commodities are Function Method
complementary, then a rise in the d. Oligopoly 4. Factor Prices
price of one commodity will induce
Codes :
(A) A rise in the price of the other a b c d
commodity
(A) 3 4 2 1
(B) An upward shift of demand (B) 4 3 1 2
curve (C) 3 2 1 4
(C) No shift in demand for the (D) 1 2 3 4
other commodity
(D) A backward shift in demand 6. When analysing your business and its
for the other commodity environment, it is useful to carefully
inspect
(A) Threats
3. What is the characteristic of a purely (B) Opportunities
competitive market ? (C) Strengths and weaknesses
(A) Large number of buyers and (D) All of the above
sellers
7. Which of the following is an example
(B) A few sellers
of an external threat ?
(C) A few buyers (A) Decreased competition
(D) Abnormal profit (B) New Trade Regulations
(C) Global Sales Potential
(D) Economies of Scale
4. Willingness to pay minus actual
payment is called 8. Expectancy Theory of Motivation
(A) Consumer’s surplus was propounded by
(A) Porter and Lawler
(B) Producer’s surplus (B) McGregor
(C) Utility cost (C) Vroom
(D) Supplier’s surplus (D) J. Stacy Adams
Paper-II 2 D-17-12
9. Which one of the following is not a
step in planning ?
(A) Establishing objectives
(B) Developing premises
(C) Determining alternative courses
(D) Identifying needs of employees
10. Planning is looking ahead and
control is
(A) Scanning environment
(B) Looking back
(C) Setting targets
(D) Defining objectives
11. Human Resource Management
(HRM) is a part of the broad Human
Resource Development (HRD)
System, as this focus to
(A) Selection, Induction, Training
and Development
(B) Operational and Organisational
Options
(C) (A) and (B) above
(D) None of the above
12. Performance Appraisal is a double
edged tool to
(A) Create space for the employee
to organisationally survive.
‘ (B) Offering challenges
promotion.
(C) Accompanying the course of
Demotion.
(D) All of the above.
13. Wage determination is mostly done
through tools which are
(A) Objective
(B) Subjective
(C) Both of (A) & (B)
(D) None of these
14. Job Evaluation criterion comes from
(A) Job manual
(B) Job description
(C) Job specification
(D) Job duration
Paper-II
15. Exit Policy primarily emphasises in
the broad sense, for policy makers as
(A) Removing employees
(B) Down sizing
(C) Retiring people and
Rehabilitating them
(D) Bringing new blood to the
Corporate
16. The goal of financial management is to
(A) Maximise the wealth of
Preference Shareholders
(B) Maximise the wealth of
Debentureholders
(C) Maximise the wealth of Equity
shareholders
(D) All of the above
17. The Internal Rate of Return (IRR) is
determined where
(A) the Net Present Value is
positive
(B) the Net Present Value is
negative
(C) the Net Present Value is zero
(D) None of the above
18. The Tax shield would result in
for i. increase in tax liability
ii. increase in EPS
iii. decrease in EPS
iv. decrease in tax liability
Codes :
(A) (ii) and (iv)
(B) (i) and (iii)
(C) (i) and (iv)
(D) (iii) and (iv)
19. Which of the following is a main
method of issue of stocks ?
(A) Vendor placing
(B) Public issue through
Prospectus
(C) Private placements
(D) None of the above
4 D-17-12
20. The Capital Asset Pricing Model 25. The scientific system of collecting
(CAPM) establishes the relationship and analysis of data pertaining to
between market is known as
(A) Risk and EPS (A) Production Research
(B) Risk and value of the firm (B) Advertising Research
(C) Risk and the required rate of (C) Marketing Research
return
(D) None of the above
(D) None of the above

21. ‘Marketing is a human activity 26. Which one of the following is not the
directed at satisfying needs and function of Production Management ?
wants through Exchange process’; is (A) Production, Planning and
the statement of Control
(A) Cundiff ad Still (B) Procurement of Raw Materials
(B) Kenneth Andrews (C) Market Intelligence and Survey
(C) Philip Kotler (D) Plant Location and Layout
(D) Kishwar S. Kan
27. Time study refers to
22. Promotion mix includes
(A) Advertising, publicity, personal (A) Developing a standard time to
selling and sales promotion do a particular task
(B) Physical attributes, brand, (B) Improving work methods
package and product life cycle (C) Value analysis
(C) Brand name, product benefits, (D) Value engineering
delivery and credit
(D) Transportation, material 28. Acceptance Quality level is
handling, packaging and
(A) Maximum number of
customer service
defectives that the consumers
will accept
23. Which of the following is not the
stage of product life cycle ? (B) Fraction defective(s) that the
consumer considers acceptable
(A) Introduction
(B) Growth (C) Fraction defective(s) that the
(C) Market segmentation producer considers acceptable
(D) Decline (D) Maximum number of
defectives that the producer
will allow
24. Which is the basic form of
Innovation ?
(A) Introduction of novel 29. In a transportation problem involving
production process 10 origins and 5 destinations, the
(B) Improvement and development number of constraints representing
of existing process origin capacity and destination
(C) Improvement and development requirements is equal to
of existing firm (A) 50 (B) 49
(D) All of the above (C) 15 (D) 14
Paper-II 6 D-17-12
30. The critical path of a network is
(A) for which earliest start time and
latest start time are same
(B) the shortest time path through a
network
(C) for which earliest finish time
and latest finish time are same
(D) the longest time path through a
network
31. If a person buys one ticket of a State
lottery, then the probability that he
wins a price is 0.11. If a person buys
one ticket each month for five
months, what is the probability that
he will win least one price ?
(A) 0.55
(B) 0.50
(C) 0.44
(D) 0.56
32. The standard error of the mean of a
random sample of size two or more.
(A) Always exceeds the population
standard deviation.
(B) Either exceeds or equals the
population standard deviation.
(C) Is always lower than the
population standard deviation
(D) Is always equal to the
population standard deviation.
33. A store manager is trying to explore
the relationship between percentage
fat content (Y) and price (X) of
various dairy products. He finds that
the coefficient of determination is
0.4624 and the estimated regression
line is Y = 0.5 – 0.02 X. The
coefficient of correlation would be
(A) 0.68
(B) – 0.68
(C) – 0.02
(D) 0.4624
Paper-II
34. Which of the following statement on
testing of hypothesis is always true ?
(A) When the null hypothesis is
rejected at 5%, it is always
rejected at 1% level of
significance.
(B) When the null hypothesis is
rejected at 1%, it is also
rejected at 5% level of
significance.
(C) When the null hypothesis is not
rejected at 1%, it is rejected at
5% level of significance.
(D) No definite assertion can be
made.
35. Which of the following devices
would be considered a typical
sequential access medium ?
(A) Magnetic Hard Disk
(B) Magnetic Floppy Disk
(C) Magnetic Tape
(D) CD ROM
36. What describes the market, product
and technological areas of business ?
(A) BCG Matrix
(B) GE Nine Cell Matrix
(C) 7’s framework
(D) Company’s Mission
37. Name the factors taken into
consideration in Internal Analysis
(A) Firm Resources
(B) Objective, plans and policies of
the firm
(C) The type of business involved
(D) All of the above
38. Diversification is to a new business
area that has no obvious connection
with any of the company’s existing
areas refer to
(A) Forward integration
(B) Backward integration
(C) Conglomerate diversification
(D) Concentric diversification
8 D-17-12
39. Which business unit generates 46. Anything dealing with Ethics in
substantial cash surplus due to low Business is
industry growth rate and high profit (A) good, bad or both, to the
share ? business gains
(A) Dog
(B) not related to religion
(B) Cash cow
(C) Question mark (C) not to focus obligation
(D) Star (D) killing all types of Unfair
Trade Practices
40. Who plays an important role in the
success of products and services and 47. Ethics provide
in increasing the marketing share of
the firm in business ? (A) Consumer Autonomy
(A) Functional level Managers (B) CSR
(B) Corporate level Managers (C) Justice
(C) Business level Managers (D) All of the above
(D) All of the above
41. Entrepreneurship as a theory of 48. Company seeking ethical standard
business was propounded by must purport to
(A) Douglas McGregor (A) Good Employee Relation
(B) Thomas A. Coleman (B) Better Production Portfolio
(C) Joseph A. Schumpeter (C) Economy of Scale
(D) Adam Smith (D) Public Disclosure and
42. Policies related to Revival of Sick Publishing
Units are framed by
(A) IIFT (B) CSIR 49. Which of the following is not the act
(C) SEBI (D) MSME of Corporate Governance ?
(A) Protecting the interest of
43. The book ‘Innovation and shareholders
Entrepreneurship’ is written by
(A) Harold Koontz (B) Protecting the interest of
(B) Blake and Mouton employees
(C) Peter F. Drucker (C) Fudging of Accounts
(D) None of the above (D) Paying Taxes to the
Government
44. State Financial Corporation Act
encourages in
(A) Establishing Industrial Estates 50. Corporate Social Responsibility
(B) Establishing small and medium (CSR) is looked as the organised
size industries network of making long economic
(C) Establishing Agricultural and social relationship of the
Farms corporate with the society. But a
(D) All of the above business of which type, as mentioned
below, cannot afford for it, at the first
45. Name the Author of Equity Theory instance ?
of Motivation. (A) Large Business
(A) Blake & Mouton
(B) Strube & Garcia (B) Medium Business
(C) Stancy Adams (C) Small Business
(D) Albert Bandura (D) A Business Start-up
Paper-II 10 D-17-12
 MANAGEMENT
Paper – II
Note : This paper contains fifty (50) objective type questions, each question carrying two (2)
marks. All questions are compulsory.
1. The hypothesis that ‘consumption in 4. Arrange the following in the proper
one period would be a function of order for decision under capital
income in that period and the returns budgeting.
on savings of the previous period’ is (i) Estimating the cost and
given by benefits of proposals.
(ii) Deciding the investment
(A) Irving Fisher objective.
(B) Franco Modigliani (iii) Selecting the best investment
(C) Duesenberry proposal.
(iv) Applying the capital budgeting
(D) Robert Hall
decision technique.
Codes :
2. From the following identify one (A) (ii) (iv) (i) (iii)
which is not a property of (B) (ii) (iv) (iii) (i)
Indifference curve ? (C) (ii) (i) (iv) (iii)
(D) (ii) (i) (iii) (iv)
(A) Indifference curves are
downward sloping. 5. Match the following items in
(B) Indifference curves are concave List – A with the most appropriate
to the origin. options from List – B :
List-A List-B
(C) Indifference curves are convex a. A lender buys 1. Interest
to the origin. securities to rate collar
(D) Indifference curves do not protect himself
intersect each other. from a falling
interest rate
b. A borrower buys 2. Interest
3. Which one of the following securities to rate cap
statements is true ? protect himself
(A) Business decisions cannot be from rising
taken without a sound interest rate
knowledge of Macro Economic c. A combination 3. Interest
Theories. of interest rate rate
(B) Knowledge of Economic cap and floor corridor
Theory is misleading in making d. A combination 4. Interest
business decisions. of two or more rate floor
interest rate caps
(C) With the help of Economic Codes :
Theories, it is always possible a b c d
to predict the future accurately. (A) 2 4 3 1
(D) Every Economic Theory is (B) 4 2 1 3
based on realistic facts which (C) 4 2 3 1
are common to all societies. (D) 3 2 1 4
Paper-II 2 J-17-13
6. The form of learning in which people 10. Match the following :
acquire new behaviours by systematically a. Self- 1. Determining
observing the rewards and punishments efficacy specific levels
given to others is known as of performance
(A) Operant conditioning for workers to
(B) Positive reinforcement attain them.
(C) Modelling b. Goal 2. The belief that
(D) Law of effect setting one’s efforts
7. Diffusion of routine information will positively
takes place through influence one’s
(A) Downward Communication performance.
(B) Upward Communication c. Expectancy 3. People strive to
(C) Horizontal Communication maintain ratio
(D) External Communication of their own
outcomes to
8. An integrated group of activities to their own inputs
bring about a change is known as that are equal to
(A) Organisation development that of those
(B) Interventions with whom they
(C) OCTAPACE compare
(D) Collaborative culture themselves.
9. Match the following : d. Equity 4. One’s belief
a. Motivation is a 1. Expectancy Theory about having
function of Theory the capacity to
fairness in social perform a task.
exchanges. Codes :
b. People are 2. Alderfer’s a b c d
motivated to ERG (A) 1 2 3 4
behave in ways Theory (B) 4 1 2 3
that produce (C) 3 4 1 2
valued outcomes. (D) 2 3 4 1
c. Determining 3. Equity
specific levels of Theory 11. Human resource planning system
performance for includes
workers to attain (A) Human resource supply forecast
and then striving (B) Human resource inventory
to attain them. (C) Corporate plan
d. When people are 4. Goal- (D) All of the above
frustrated by their Setting 12. Who among the following propounded
inability to meet Theory the concept of collective bargaining ?
needs at the next (A) Beatrice and Gompers
higher level in the (B) Beatrice and Emerson
hierarchy, they (C) Gompers and Emerson
regress to the next (D) Gautt and Gompers
lower category of 13. What are the benefits of human
needs and resource planning ?
intensify their (A) Achieve economy in hiring
desire to gratify new workers.
these needs. (B) Match personnel activities and
Codes : future organization objectives
a b c d
(A) 1 2 3 4 efficiently.
(B) 4 3 2 1 (C) Improve the utilization of
(C) 3 1 4 2 human resources.
(D) 3 4 1 2 (D) All of the above
Paper-II 4 J-17-13
14. Human Resource Management 18. Participating preference shares are
includes those which participate in the
1. Employee Grievance (A) general meeting of the company
2. Organizational climate (B) voting
3. Job incentives (C) profits over and above their
4. Recruitment fixed dividend
5. Selection
Select the correct answer from the (D) management of the company
following : 19. Which of the following is one of the
(A) 1, 2, 3 and 4 critical assumptions of Walters’
(B) 1, 3, 4 and 5 Model ?
(C) 1 and 5 (A) All financing is done through
(D) All of the above retained earnings; external
15. Match the following : sources of funds like debt or
a. Job 1. Determining new equity capital are not used.
Analysis worth of a job. (B) The retention ratio, once
b. Job 2. Examining how decided upon, is constant.
Evaluation work adds value Thus, the growth rate, (g = br)
to the ongoing is also constant.
process. (C) The capital markets are perfect
c. Job Design 3. Determining the and the investors behave
pertinent facts rationally.
about the job. (D) All of the above.
d. Work Flow 4. Organizing
Analysis work into the 20. This consists of two lists of
tasks required to statements or terms and the candidate
perform a has to match an item in one list with
specific job. an item in the other :
Codes : List-I List-II
a b c d (Statement) (Terms)
(A) 1 2 3 4 a. Preventing 1. Management
(B) 4 3 2 1 hostile takeover buyout
(C) 3 1 4 2 b. Leveraged 2. Green mail
(D) 2 3 1 4 buyout
16. Which ratio explains that how much c. Accounting for 3. Pooling of
portion of earning is distributed in merger interest
the form of dividend ? d. Financing for 4. Cash offer
(A) Dividend – Debt Ratio merger
(B) Equity – Debt Ratio Codes :
(C) Pay-out Ratio a b c d
(D) Earning – Yield Ratio (A) 1 2 3 4
17. Modern approach to financial (B) 2 1 4 3
management is (C) 2 1 3 4
I. The total fund requirement of (D) 3 4 2 1
the firm. 21. What kind of pricing strategy a firm
II. The asset to be acquired. should normally follow for marketing
III. Payment of dividend to electronic goods ?
shareholders.
(A) I only (A) Penetration pricing strategy
(B) II only (B) Skimming pricing strategy
(C) II & III only (C) Cost plus pricing strategy
(D) I, II & III (D) All of the above
Paper-II 6 J-17-13
22. Which fact is true about on-line 25. Match the following :
marketing ? List-I List-II
(A) A website which is user-
friendly. a. Differentiation 1. How familiar
(B) A website which is user- and intimate
friendly and regularly updated. consumers
(C) A website which is user- are with the
friendly, regularly updated and brand.
make product’s graphical b. Esteem 2. The degree
image available. to which a
(D) A website which is user- brand is seen
friendly, regularly updated, as different
provides product’s graphical from others.
image and product’s price is
competitive. c. Relevance 3. How well the
brand is
23. Which of the following function regarded and
involved under marketing respected.
management’s function ?
1. Collection of market d. Knowledge 4. The breadth
information of a brand’s
2. Marketing coordination appeal.
3. Marketing controlling Codes :
4. All the above a b c d
Codes :
(A) 1 & 2 (A) 1 2 3 4
(B) 2 & 3 (B) 2 3 4 1
(C) 3 only (C) 3 4 1 2
(D) 4 only
(D) 4 3 2 1
24. Two statements are given below :
Statement – I : Product concept of 26. Work measurement refers to
marketing holds that consumers (A) the length of time it takes to
would favour those products complete a work task assigned
that are available and highly to a specific job.
affordable.
Statement – II : Production concept (B) improving work methods.
of marketing holds that (C) arrangement of machines
consumers would not buy according to operations.
enough of the company’s
(D) planning the work and working
product unless the company
for the plans.
undertakes a substantial
promotional effort. 27. Facility planing includes
Choose the correct option from the
four options given below : (A) Determination of production
(A) Statement I is correct and II is capacity
wrong. (B) Determination of production
(B) Statement II is correct and I is facilities location
wrong.
(C) Determination of the layout
(C) Both statements are correct.
(D) Both statements are wrong. (D) All the above
Paper-II 8 J-17-13
28. Match the following : 32. Arrange the following in ascending
a. For fraction or 1. R-chart order in the testing of hypothesis :
proportion of (i) Determining the level of
defects significance
b. For number of 2. C-chart (ii) Deciding the Statistical Test
defects and computation
c. For number of 3. nP-Chart (iii) Setting the hypothesis
defects for unit (iv) Decision
d. For monitoring 4. P-Chart Codes :
process (A) (iii), (ii), (i) and (iv)
variability (B) (iii), (i), (ii) and (iv)
Codes : (C) (i), (iii), (ii) and (iv)
a b c d (D) (i), (iii), (iv) and (ii)
(A) 1 2 3 4 33. Y = a + bX refers to
(B) 4 3 2 1 (A) Y = independent variable, a = slope
(C) 2 1 4 3 of the line, b = Y intercept and
(D) 3 4 1 2 X = dependent variable
29. Statement – I : One of the major (B) Y = dependent variable, a = slope
causes of the industry for larger of the line, b = Y intercept and
capacity is the argument that X = independent variable
large facilities facilitate greater (C) Y = independent variable,
economies of scale. But the a = dependent variable, b = Y
major concern for building big intercept and X = slope of the line
capacity is that funds will be (D) Y = dependent variable, a = Y
tied up or scarcity of funds. intercept, b = slope of the line
Statement – II : A viable alternative and X = independent variable
to larger capacity production 34. Select the most appropriate option
facilities is to develop sub-
contractor and supplier from Column B against the items in
networks. Column A :
(A) Both statements I & II are Column A Column B
correct. a. Computer used to 1.Components
(B) Both statements I & II are operate large of
false. corporate systems information
(C) Statement I is correct and II is and databases system
false. b. Data flow diagram 2. RAID
(D) Statement II is correct and I is c. Equipment, proce- 3. Structured
false. dures and end user design
Codes :
30. In a symmetrical distribution a b c
(A) Mean, Median and Mode (A) 3 2 1
values are identical. (B) 2 3 1
(B) Mean, Median and Standard (C) 1 2 3
Deviation are equal. (D) 2 1 3
(C) Mean, Median and Correlation
are equal. 35. According to Michael Porter, a strategy
(D) None of the above aims at producing products and
services considered unique industry
31. From the following, identify the test wide and directed at consumers who
which can be used both as parametric are relatively price-insensitive is
and non-parametric ? known as
(A) ‘t’ test (A) Cost Leadership – Best Value
(B) ‘F’ test (B) Differentiation
(C) ‘Chi-square’ test (C) Focus – Low Cost
(D) ‘Wil-coxon’ test (D) Focus – Best Value
Paper-II 10 J-17-13
36. In context of Industry Analysis 39. Match the following :
which matrix allows strategists to Organizational Advantage
summarise and evaluate economic, Structure
social, cultural, demographic, a. Functional 1. Clarity of project
environmental, political, Structure objectives
governmental, legal, technological b. Divisional 2. Smooth
and competitive information ? Structure delegation of
(A) EFE Matrix authority and
(B) CPM Matrix responsibility
(C) BCG Matrix c. Matrix 3. Simple and
(D) IFE Matrix Structure unexpensive
d. Strategic 4. Ease of fixing
37. Which among the following best Business accountability
Unit (SBU)
describes the process of gaining
Codes :
(A) Strengths o Weaknesses o
competitive advantage in a firm ?
a b c d
Distinctive Competencies o
(A) 1 2 3 4
(B) 3 4 1 2
(B) Weaknesses o Strengths o
Competitive Advantage
(C) 3 4 2 1
Distinctive Advantages o
(D) 4 3 1 2

(C) Weaknesses o Strengths o

Competitive Advantages
Distinctive Competencies o
(D) Distinctive Competencies o
Competitive Advantages
Weaknesses o Strengths o
Competitive Advantages
38. According to Porter, the nature of
competitiveness in a given industry
can be viewed as a composite of the
following five forces :
1. Rivalry among competing firms.
2. Potential entry of new
competitors.
3. Potential development of
substitute products.
4. Bargaining power of suppliers.
5. Bargaining power of consumers.
Identify the force which is central
(most powerful) to remaining four :
(A) Potential development of
substitute products.
(B) Potential entry of new
competitors.
(C) Bargaining power of consumers.
(D) Rivalry among competing firms.
Paper-II
40. A sound business opportunity is the
result of appropriate interaction
between :
(A) needs of the society
(B) capabilities of an entrepreneur
(C) resources available in the
environment
(D) all of the above
41. “An entrepreneur always searches for
change, responds to it and exploit it
as an opportunity.” Who said it ?
(A) F.W. Taylor
(B) Peter F. Drucker
(C) J.R. Tulsian
(D) Max Weber
42. An industrial unit, according to RBI,
is sick if
(A) incurred cash loss in the
previous year.
(B) likely to incur loss in the
following year.
(C) current ratio is less than 1 : 1
with weak debt-equity ratio.
(D) all of the above.
12 J-17-13
43. Which is not the object of 47. Which of the following powers of
Entrepreneurship Development Directors cannot be exercised
Programmes ? without the consent of shareholders
(A) To create successful entrepreneur in General Meeting ?
(B) To remove doubts of (A) Power to make calls on
entrepreneurs and to give shareholders
solutions to the problems (B) Power to make loans
(C) To create awareness about (C) Power to buy back its shares
Government schemes and (D) Power to borrow monies
programmes exceeding the aggregate of the
(D) None of the above paid-up capital of the company
44. Match the following : and its free reserves.
a. Central 1. Deals with
Manufacturing paper industry 48. The professional having high ranking
Institute and trained to uphold the highest
b. Central Pulp 2. Deals with standard and effective operations,
and Paper pollution compliance and administration as
Research control in corporate governance, is known as
Institute Indian (A) Directors of Company
Tannerics (B) Chairman of Company
c. Central leather 3. Deals with (C) Company Secretary
Research Machine Tools (D) Shareholders
Institute
d. Electronic 4. Deals with 49. Governance is the system of values,
Service and training, policies and institutions by which a
Training Centre technical and society manages its economic,
consultancy political and social affairs through
services interactions within and among the
Codes : state, civil society and private sector
a b c d is defined by
(A) 1 2 3 4 (A) World Bank
(B) 3 1 2 4 (B) UNDP
(C) 2 3 4 1 (C) European Commission
(D) 4 3 1 2 (D) None of the above
45. The customer joining the queue and 50. Match the following with regards to
leaving it afterwards is defined as environmental ethical issues :
(A) Jockeying
a. Ozone 1. Lead poisoning
(B) Balking
(C) Reneging Depletion
(D) None of the above b. Environmental 2. Deforestation
Health
46. Which among the following is not c. Logging 3. Food
correct with regards to Clause 49 of controversies
SEBI Act ? d. Genetic 4. CFC
(A) It came into effect from 31st
Engineering
December 2005.
(B) Clause 49 is related to the Codes :
Listing Agreement to the a b c d
Indian Stock Exchange. (A) 4 2 1 3
(C) It desires 50 percent (B) 4 1 2 3
independent Directors. (C) 4 3 2 1
(D) None of the above (D) 4 3 1 2

Paper-II 14 J-17-13
 MANAGEMENT
Paper – II
Note : This paper contains fifty (50) objective type questions of two (2) marks each. All
questions are compulsory.
1. The Marshallian utility analysis is
based on a less valid assumption of
(A) cardinal measurement of utility
(B) constant marginal utility of
money
(C) diminishing marginal utility
of goods
(D) additivity of the utility
2. An appropriate pricing strategy for
a new product to be introduced in
the market will be
(A) Average/Marginal cost-plus
pricing
(B) Skimming/Penetrating pricing
(C) Product-line pricing
(D) Differential pricing
3. Economic capacity of a plant
represents the firm’s capability for
(A) Maximum physical output
(B) Maximum marginal output
(C) Break-even level of output
and sale
(D) Output that equates average
and marginal costs
4. Multi-stage approach to product
pricing in a firm involves
considerations for setting the price
as follows :
i. Selection of firm’s objective
ii. Composition of marketing-mix
iii. Selection of target market
iv. Selection of pricing policy and
strategy
(A) iv o ii o i o iii
Indicate correct sequence :
(B) iii o i o ii o iv
(C) ii o iv o iii o i
(D) i o iii o ii o iv
5. Which one of the following
practices is not sought to be
regulated under the Consumer
Protection Act, 1986 ?
(A) Sales of defective goods
(B) Supply of services having
some deficiency
(C) Misleading advertisements
(D) Goods supplied free of
charge
Paper-II
6. The leadership prototype
(A) is useful primarily for
selection and training of
employees
(B) uses LPC (Least Preferred
Co-worker) as an important
component
(C) depicts the image of a model
leader
(D) emphasizes leadership
development
7. Which is not a perceptual process
stage ?
(A) Attention/selection
(B) Interpretation
(C) Follow-through
(D) Retrieval
8. Which statement is correct ?
(A) Goals act as the set of
constraints that an
organisation must satisfy.
(B) Deterministic goals specify
the end or direction towards
which the organisation
applies its efforts, and they
can be fairly determined.
(C) Goals may be categorised as
deterministic and constraint
goals.
(D) All of the above.
9. According to Fiedler’s
Contingency Model of Leadership,
which one of the following is not a
situational variable ?
(A) Leader-Member relations
(B) Task structure
(C) Position power
(D) Maturity of followers
10. Which is not a centralised
communication network system ?
(A) Wheel Network
(B) Y-shaped Network
(C) Circle Network
(D) Chain Network
2 D-17-13
11. Why is ‘procedural justice’ 16. If the going rate of interest is above
important in the context of the the coupon rate, the bond will sell :
management of misconduct ? (A) At a Premium
(A) It reflects on the integrity of (B) At a Discount
HR professionals.
(B) It ensures that individuals (C) At Par
have a sense that they have (D) None of the above
been treated fairly. 17. In case the sales or project’s
(C) It reflects on the values and investment deviates from expected
attitudes of top management. ones, it needs
(D) It protects the interest of (A) Optimistic scenario analysis
daily wage earners.
(B) Sensitivity analysis
12. To be effective a points-based- (C) Simulation analysis
rating system requires : (D) Financial break-even analysis
(A) Close management control 18. ‘Trading on equity’ refers to
(B) Comprehensive, reliable and (A) Optimum capital structure
consistent information
(C) Objectivity in assessments (B) Appropriate capitalisation
(D) 360q assessment (C) Capital gearing
(D) Watered capital
13. Too much of reliance on internal 19. Match the items of two lists, giving
recruitment can result in the correct code :
(A) Reduced job performance
(B) High labour turnover List – I List – II
(C) Internal conflict a. Dividend i. John
(D) Poor group dynamics Capitalisation Lintner
Model
14. The concept of stagnation in the b. Dividend ii. James E.
context of HRM means : Relevance Walter
(A) Lack of appropriate selection Model
criteria. c. Dividend iii. Myron
(B) HR staff having very limited Irrelevance Gordon
experience outside the HR Model
function.
(C) Over-reliance on the internal d. Dividend Pay- iv. Modigliani
labour market to fill new out Model & Miller
positions. Codes :
(D) Lack of integration of a b c d
recruitment and selection into (A) ii i iii iv
the wider human resource (B) i iv ii iii
function. (C) iii ii iv i
(D) iv iii i ii
15. Negotiations are an important
aspect of the collective-bargaining 20. The excess payment by the new
process. What do they ensure ? company to the amalgamating
(A) That conflict is contained companies for the appraised value
within manageable of the assets and liabilities taken
boundaries. over is accounted as
(B) That there is an agreement
between all parties involved. (A) Capital Reserve
(C) That conflict is always (B) Bonus Share Capital
resolved. (C) Goodwill
(D) It achieves a set of lasting (D) Amount paid for the
agreements. acquisition of the brand
Paper-II 4 D-17-13
21. Which of the following is direct 27. In Linear Programming, which one
marketing ? of the following cases is not a type
(A) Face to-face marketing of sensitivity analysis ?
(B) Catalogue marketing (A) Model building
(C) Direct mailing
(D) Test marketing (B) Objective-function ranging
(C) Pricing out
22. In marketing research, primary data (D) Right hand-side ranging
can be collected through
(A) Observational Method –
(B) Survey Method 28. The upper control limit for an X
(C) Experimental Method chart, with n = 9, = 26.7,
(D) All of the above __
23. Holistic marketing does not include R = 5.3 and d2 = 2.970, is
(A) Internal Marketing (A) 24.9 (B) 26.11
(B) Integrated Marketing (C) 27.29 (D) 28.48
(C) Performance Marketing
(D) Financial Marketing 29. The additional cost of shortening an
24. Which of the following is not a activity by one unit of time is
distinctive characteristics of services ? (A) Cost slope (B) Crash cost
(A) Transparency (B) Intangibility (C) Crash time (D) Least cost
(C) Inseparability (D) Perishability 30. Which method is least suited for
25. To remain dominant, a market forecasting the demand of a new
leader looks for product ?
(A) ways to expand total market (A) Survey of Buyers’ Intentions
demand (B) Composite Opinions of Sales
(B) attempting to protect its
current share Force
(C) increasing its market share (C) Test Marketing
(D) all of the above (D) Time-Series Analysis
In a hypothesis test, D= 0.05 and
E = 0.10, the power of the test is
26. Consider the names of 31.
organisations/persons listed in
List – I and their role/functions (A) 0.10 (B) 0.90
given in List – II : (C) 0.95 (D) 0.15
List – I List – II
a. Bureau of i. Measurement of 32. When performing a Chi-square
Indian Service quality hypothesis test, what happens when
Standards expected frequencies in several
(A) Value of F2 will be
(BIS) cells are too small ?
b. Zeithmal, ii. Measurement of
Parasuraman quality of overestimated.
and Berry Educational service
c. ISO iii. Standardisation and (B) The null hypothesis will be
quality control of more likely to be rejected
manufactured than it should be.
goods (C) The degrees of freedom are
d. National iv. Quality marking greatly reduced.
Assessment and Certification (D) (A) and (B), but not (C).
and of standards
Accreditation 33. Under which situation, the method
Council of ‘experimentation, modelling and
Indicate the correct matching : sensitivity analysis’ is used to
Codes : determine the information
a b c d requirements of the management ?
(A) i ii iii iv (A) Total Uncertainty
(B) ii iii iv i (B) High Risk
(C) iv ii iii i (C) Low Risk
(D) iii i iv ii (D) Certainty
Paper-II 6 D-17-13
34. The technique(s) that can be used 38. Match the items of List – I and
in data mining is/are : List – II :
(A) Non-linear Regression Methods List – I List – II
(B) Decision tree
(C) Neural networks a. UNCTAD I i. India
(D) All of the above b. UNCTAD II ii. Brazil
c. UNCTAD X iii. Thailand
35. A Binomial distribution may be
approximated by a Poisson d. UNCTAD XI iv. Switzerland
distribution, if : Indicate the correct matching.
i. ‘n’ is large and ‘p’ is large. Codes :
ii. ‘n’ is small and ‘p’ is large. a b c d
iii. ‘n’ is small and ‘p’ is small. (A) iv i iii ii
iv. ‘n’ is large and ‘p’ is small. (B) iii i iv ii
Codes :
(A) i, ii and iii (C) ii i iii iv
(B) ii only (D) iv i ii iii
(C) iii and iv only
(D) iv only 39. In the context of International
36. Double taxation relief is normally Business, whether an equal
provided by the country in which distribution of income in the host
the parent company has its legal country :
residence. It is provided in the (A) Has nothing to do with the
following modes : MNCs market segmentation
i. Credit system without deferral
ii. Credit system with deferral strategy.
iii. Deduction of tax paid abroad (B) Matters greatly to the MNCs
as expenditure market segmentation strategy.
iv. Investment credit (C) Has little impact on the
v. Tax subsidy MNCs market segmentation
Identify the correct combination. strategy.
Codes :
(A) i, ii, iii and iv (D) Has a significant impact on the
(B) i, ii, iv and v MNCs market segmentation
(C) ii, iii, iv and v strategy if the economy is at
(D) i, ii, iii and v the take-off stage.
37. The strategies of a global firm are
affected by the following factors : 40. Statement-I : Cost of retained
i. Different countries have earnings is included in the
different labour mixes. cost of equity in the context
ii. The legal, economic, social and of international business.
cultural environment varies Statement-II : Interest rate swap
from one country to another. and currency swap are used
iii. Different countries have interchangeably in
different time lines and international business.
geographical boundaries.
iv. Political relationship between (A) Statement I is true, but
the home country and the Statement II is false.
host country. (B) Statement I is false, but
Indicate the correct combination. Statement II is true.
Codes : (C) Both the statements I and II
(A) i, ii and iii are true.
(B) ii, iii and iv
(C) i, ii and iv (D) Both the Statements I and II
(D) i and ii only are false.
Paper-II 8 D-17-13
41. Who said – “An entrepreneur 45. TePP stands for
always searches for change, (A) Technology for Promotion
responds to it and exploit it as an and Production
opportunity.” ? (B) Trade for Profitability and
(A) James Burna Productivity
(B) McClelland (C) Technopreneur Promotion
(C) Peter F. Drucker Programme
(D) Robert C. Ronstadt (D) None of the above
46. Indo-American Model of Corporate
42. ‘Kakinada Experiment’ on Governance sets top most priority
achievement motivation was to
conducted in (A) Business growth
(A) Uttar Pradesh (B) Customers
(B) Jammu & Kashmir (C) Employees
(C) Andhra Pradesh (D) Shareholders
(D) Gujarat
47. A good governance in corporate
43. The entrepreneurial process sector depends upon
consists of the following steps : (A) Strong political will
i. Management of the resulting (B) Transparency and
enterprise. accountability
ii. Determination of the required (C) Trade Union practices
resources. (D) Social and political responses
iii. Identification and evaluation 48. Corporate leaders in India in
of the opportunity. private sector are tempted by a very
iv. Development of the business high target of ________ and the
plan. concerned employee have to
Indicate the correct sequence. achieve the target for promotion
Codes : and stability.
(A) iii iv i ii (A) Money making
(B) iv i iii ii (B) Business growth
(C) iii iv ii i (C) Product development
(D) iv i ii iii (D) Profit
49. Corporate business ethics is
44. Match the items given in List – I ________ norms and pattern that
and List – II : spring from organizational view of
List – I List – II good and bad, right and wrong.
a. Market i. Sales (A) Social
Research promotion (B) Behavioural
b. Financial ii. Form of (C) Institutional
Plan business (D) Individual
c. Ownership iii. Budgeting
50. Trade Union strike supporting a
d. Marketing iv. Exploring political cause and affecting
Plan market production activities is a problem
opportunity related to
Codes : (A) Socio-economic phenomenon
a b c d (B) Ethical and technical
(A) i ii iii iv phenomenon
(B) iv iii i ii (C) Ethical and economic
(C) iv iii ii i phenomenon
(D) i ii iv iii (D) Socio-political phenomenon

Paper-II 10 D-17-13
 MANAGEMENT
Paper – II
Note : This paper contains fifty (50) objective type questions, each question carrying two (2)
marks each. Attempt all the questions.
1. In case the price (P), quantity (Q), 6. Which of the following is a correct
and changes (∆) are represented by match ?
respective symbols given in the (A) McClelland – ERG Theory
brackets, the price elasticity of (B) Skinner – Reinforcement
demand (Ed) is measured by Theory
(A) Ed = ∆Q/∆P (C) Vroom – Equity Theory
(B) Ed = (∆Q/Q)/(∆P/P) (D) Locke – Expectancy
(C) Ed = ∆P/∆Q Theory
(D) Ed = (∆P/P)/(∆Q/Q)
7. The study of gestures and body
2. Law of Diminishing Return applies postures for their impact on
when the gaps among the successive communication is known as
‘multiple-level of output’ isoquants (A) Kinesics
(A) decreases (B) Proxemics
(B) remains constant (C) Semantics
(C) increases (D) None of the above
(D) remains irregular
8. According to Organisational Culture
3. In case the demand elasticity under Inventory (OCI), an organisation in
imperfect competition is unity, the which members are encouraged to
marginal revenue will be work together in ways that meet
(A) more than utility, but less than
higher order human needs is
infinity. classified as having a _________
(B) equal to unity. culture.
(C) less than unity, but more than zero. (A) constructive
(D) equal to zero. (B) motivational
4. Rise in general price level alongwith (C) passive
declining output in the economy is called (D) high achievement
(A) Inflation
(B) Deflation 9. A matrix structure of organisation
(C) Stagflation (A) reinforces unity of command
(D) Demand-pull inflation (B) is inexpensive
(C) is easy to explain to the
5. National income equilibrium is not at employees
the level where (D) gives to some employees more
(A) aggregate investment equals than one boss
aggregate savings
(B) aggregate expenditure equals 10. Organisational development (OD) is
aggregate income a planned change plus
(C) inflationary and deflationary (A) Evaluation
gaps are absent (B) Intervention
(D) aggregate consumption is (C) Ability for self-renewal
constant (D) Reinforcement
Paper-II 2 J-17-14
11. Match the following : 13. _________ aims to reduce reliance
List – I List – II on arbitrary methods of pay
determination by introducing an
(Concept) (Term)
element of objectivity in the way jobs
a. An ongoing and i. Direction are compared.
formalised effort phase
(A) Performance appraisal
that focuses on
developing (B) Job evaluation
enriched and more (C) Job enrichment
capable workers (D) Attrition
b. A career ii. Career
development development 14. Match the following :
activity in which List – I List – II
managers make a. The process of i. Job
decisions regarding examining how Enrichment
the advancement work creates or
potential of adds value to the
subordinates ongoing processes
in a business
c. A career iii. Promot-
development ability b. A fundamental ii. Job Design
rethinking and
activity that focuses forecast
radical redesign of
on preparing business processes
people to fill to achieve dramatic
executive positions improvements in
d. Determining the iv. Succession cost, quality,
type of career that planning service and speed
employees want c. The process of iii. Work flow
and the steps they organising work analysis
must take to realise into the tasks
their career goals required to
perform a specific
Codes :
task
a b c d
d. The process of iv. Business
(A) i ii iii iv putting specialised process
(B) ii iii iv i tasks back together reengineering
(C) ii iii i iv so that one person (BPR)
(D) i iii ii iv is responsible for
producing a whole
product or an
12. A formal explanation of the entire service
knowledge, skills, abilities, traits and
Codes :
other characteristics necessary for
effective job performance is known as a b c d
(A) Job Description (A) i ii iii iv
(B) Job Analysis (B) ii i iv iii
(C) Job Specification (C) iii iv i ii
(D) Job Enrichment (D) iii iv ii i
Paper-II 4 J-17-14
15. The process of reorganising a 19. Match the items given in the two lists :
company’s employees to improve List – I List – II
their efficiency is termed as
a. Debt securities i. Floating Rate
(A) Right sizing without any Bonds
(B) Down sizing explicit
(C) Retrenchment interest rate
(D) Lay-offs b. Company ii. Zero-coupon
issuing such bonds
16. The value of a bond with a given bonds
maturity period is experiences
(A) Present value of maturity value less financial
of the bond distress
(B) Present value of annual interest c. Coupon rate iii. Income
plus present value of maturity quoted as Bonds
value mark-up on the
(C) Total amount of interest plus given rate
the maturity value received Codes :
(D) Maturity value received a b c
(A) i ii iii
17. The capital budgeting appraisal
(B) i iii ii
criterion that is most appropriate in
the situation of capital rationing will (C) ii iii i
be (D) iii i ii
(A) Payback period
(B) Internal Rate of Return 20. Which one of the following types of
(C) Net present value working capital is financial through a
(D) Profitability index portion of long-term funds ?
(A) Gross working capital
18. For computation of cost of equity, (B) Net working capital
arrange the following measures in the (C) Floating working capital
ascending order of accuracy :
(D) Regular working capital
I. Capital Asset Pricing Model
II. Dividend-Price Ratio 21. In the model of consumer adoption of
III. Earning-Price Ratio new products developed by Everitt
IV. Dividend-Price Plus Growth M. Rogers, the first category of
Ratio people to adopt a new product is
Codes : called
(A) I → III → II → IV (A) Early adopters
(B) IV → I → III → II (B) Initial adopters
(C) III → II → IV → I (C) First users
(D) II → IV → I → III (D) Innovators
Paper-II 6 J-17-14
22. Pepsico used ________ to enter the 27. From the following two statements,
Indian market in the early 1980s. choose the correct answer :
(A) Mega marketing Statement I : A person can have
(B) Meta marketing one utility curve for
(C) Micro marketing one situation and a
quite different one
(D) Multistage marketing
for the next situation.
23. Pricing decisions are most complex Statement II : Business executive
at which stage of the product life with a linear utility
cycle ? curve can effectively
use the expected
(A) Decline stage
monetary value as
(B) Growth their decision
(C) Introduction criterion.
(D) Maturity Codes :
(A) Statement I is true, but II is
24. Branding seeks false.
(A) to differentiate the product (B) Statement I is false, but II is
(B) to charge differential price true.
(C) to sell the product in different (C) Both the Statements I and II are
countries true.
(D) to give attractive name to a (D) Both the statements I and II are
product false.

25. The most widely used method of
collecting the primary data is
(A) Experimental Research
(B) Observation Research
(C) Statistical Research
(D) Survey Research
26. If the EOQ for an item of inventory
in a firm is 1000 units, the estimated
demand for the term next year gets
doubled, what shall be the revised
EOQ next year, all other relevant
costs remaining unchanged ?
(A) 1000
(B) 1414
(C) 2000
(D) None of the above
Paper-II
28. Which of the following is not
included in the Five-p model of
transformation organisation used in
the Production and Operations
Management ?
(A) People
(B) Plant
(C) Production
(D) Programmes
29. Demand forecasting through “Survey
of Buyer’s Intentions” is not suited
for which type of products ?
(A) ‘Convenience goods’
(B) Industrial products
(C) New products
(D) Consumer durables
8 J-17-14
30. The names of certain reputed authors 34. The components of E-business model
and their works are listed in the are
following lists. Match the names and i. Web Server
their works in the correct order :
List – I List – II ii. Web Master
a. Elwood S. i. A Behavioural iii. Internet
Buffa and Theory of the iv. Web Administrator
Rakesh K. Firm Codes :
Sarin (A) i, ii, iii & iv
b. Richard M. ii. Introduction to
(B) i, ii & iii
Cyert and operations
James E March research (C) i & iii only
c. Martin K. iii. Production and (D) iii only
Starr and Operations
D.W. Miller Management 35. The simple probability of the
d. J.M. Juran iv. Quality Control occurrence of an event is called the
Handbook (A) Bayesian probability
e. Hillier and v. Inventory (B) Conditional probability
Leiberman Control : Theory
and Practice (C) Joint probability
Codes : (D) Marginal probability
a b c d e
(A) i ii iii iv v 36. Indicate the statement which is not
(B) ii iii iv v i correct :
(C) iii iv i ii v i. Credit risk is loss on account of
(D) iii i v iv ii default of repayment of loan.
ii. Liquidity risk is the risk on
31. What is the probability of a value,
chosen from a population, is less than account of the mismatches of
its median ? cash inflow and outflow in a
(A) 1.0 (B) 0.75 firm.
(C) 0.50 (D) 0.25 iii. Basic risk is the risk in a firm
owing to the differences in the
32. If in a given Binomial distribution index to which financial assets
with ‘n’ fixed and P < 0.5, then
and liabilities are tied up.
(A) The Poisson distribution will
provide a good approximation iv. Forward rate agreement is a
(B) The Binomial distribution will contract where a borrower /
be skewed to the left lender locks the interest rate
(C) The Binomial distribution will and protects itself from the loss
be skewed to the right on account of change in the
(D) The Binomial distribution will future interest rate.
be symmetric
Codes :
33. What separates the physical aspects (A) i and ii
of data storage from the logical (B) ii and iii
aspects of data representation ?
(C) iii and iv
(A) Schema (B) Relationships
(C) Constraints (D) Data (D) None of the above
Paper-II 10 J-17-14
37. Which of the following facts are not 40. Assertion (A) : The laws regarding
correct in the context of India’s patents and trademark are
relations with the WTO ? ineffective in many countries.
i. India has been the founder
member of the GATT. Reasoning (R) : There are cases
ii. India has agreed to abide by the when a government does not
arrangement on the intellectual abide by the rulings of the
property rights. International Court of Justice.
iii. Under the trade-related
investment measures, India has (A) (A) and (R) both are correct,
already notified its stand. and (R) is the right explanation
iv. India has agreed to allow entry of (A).
to foreign service providers.
(B) (A) and (R) both are correct,
v. The Indian government has
amended the Civil Procedure but (R) is not the right
Code for the benefit of foreign explanation of (A).
service providers. (C) (A) is correct, but (R) is not
Codes : correct.
(A) i and ii (B) ii and iii
(C) iv only (D) v only (D) (R) is correct, but (A) is not
correct.
38. Intra-firm transfer of technology is
found when
(A) the price of technology 41. A study conducted by the
development is very low. Entrepreneurship Development
(B) it is difficult to protect the Institute of India, Ahmedabad,
technology through patents. revealed that the possession of
(C) the price of technology is very high.
competencies is necessary for
(D) the technology is developed in
association with an allied firm superior performance of the
entrepreneurs. The study was
39. Match the theories of Foreign Direct
conducted under the guidance of
Investment with their contributors :
List – I List – II (A) James T. McCrory
(Theory) (Contributor) (B) David C. McClelland
a. Industrial i. Kemp & (C) James J. Berna
Organization McDougall
Theory (D) P.L. Tandon
b. Location ii. Hood and
Specific Theory Young 42. ________ is considered as a creative
c. Product Cycle iii. Stephen capital which performs economic
Theory Hymer functions different from other
d. Two-Country iv. Raymond
investment vehicles, which primarily
Model Vernon
Codes : serve as the expansion capital.
a b c d (A) Equity Capital
(A) i ii iii iv
(B) iv iii i ii (B) Fixed Capital
(C) iii ii iv i (C) Venture Capital
(D) i ii iv iii
(D) Share Capital
Paper-II 12 J-17-14
43. Which is the apex body in India for 47. Clause 49 of SEBI Regulations was
formulating the policy in respect of amended on
entrepreneurship development ?
(A) Reserve Bank of India (A) 15 August, 2000
(B) Small Industrial Development (B) 26 August, 2003
Bank of India
(C) 26 January, 2007
(C) National Entrepreneurship
Board (D) 14 February, 2008
(D) Industrial Development Bank
of India
48. Fundamental legal obligations in
44. _________ means identifying and taking corporate business decisions
imitating the best in the world at are formulated on the basis of
specific tasks.
(A) Judicial Principles
(A) Quality circle
(B) Bench marking (B) Moral Principles
(C) Strategy (C) Ethical Principles
(D) Outsourcing
(D) Legislative Principles
45. Which of the following factors can
be regarded as a symptom of 49. Corporate governance mechanism
industrial sickness ?
should ensure that corporate
(A) Lowering the employee’s
morale executive make strategic decisions
(B) Delay and default in the that serve the entire group of
payment of dues (A) Environmentalists
(C) Continuous decrease in the
price of its shares (B) Government officials
(D) All of the above (C) Suppliers
(D) Shareholders
46. Assertion (A) : Ethical relativism
means that there are universal
standards of human behaviour. 50. Morality of an employee in a
Reasoning (R) : Ethical behaviour business organisation depends upon
is primarily personal behaviour
conforming to standards of (A) Individual disposition
morality. (B) Understanding of business
(A) (A) is correct, and (R) is the
right explanation of (A). activities
(B) (A) is incorrect, and (R) is a (C) Understanding of individual in
correct statement in isolation. a group
(C) (A) and (R) both are incorrect.
(D) Family setup of individual
(D) (A) is correct, but (R) is not the
right explanation of (A). employee

Paper-II 14 J-17-14
 MANAGEMENT
Paper – II
Note : This paper contains fifty (50) objective type questions of two (2) marks each. All
questions are compulsory.

1. In the market-oriented system, for the allocation of resources which one of the following
is the most appropriate conveyor of information ?
(A) Finance Ministry (B) Central Bank
(C) Market Price (D) Advertisement Expenditure

2. A company supplies 20 units of a particular product per month, at a price of 10 per unit.
If price elasticity of supply is 5, how many units would the company supply at a price of
15 ?
(A) 50 (B) 70
(C) 40 (D) 5

3. Which characteristic is not likely to be a part of perfect competition ?

(A) Absence of interdepence (B) Deadweight loss is non-existent
(C) Strong rivalry (D) Absence of advertisement

4. Match the items given in List – I and List – II by considering which of the following are
macroeconomic issues and which are microeconomic ones :
List – I List – II
a. The level of government revenue i. Microeconomic
b. The rate of inflation ii. Macroeconomic
c. The price of T.V. set
d. The amount saved last year by households
Codes :
a b c d
(A) ii i i ii
(B) ii i ii i
(C) i ii ii ii
(D) ii ii i ii

5. In the recent years, world economy has witnessed the influence of unconventional
monetary policy of the U.S.A. This policy stance is known as
(A) Bank rate (B) Taylor rule
(C) Reserve requirement (D) Quantitative easing
Paper-II 2 D-17-14
6. Rita, a young enthusiastic manager has joined an organization as a project co-ordinator.
The project head counsels her to socialize less with non-management employees; whereas
the product head tells her to learn more about market issues. She should socialize more
with the non-management employees. Rita is confused, she is facing
(A) Inter-role conflict (B) Intra-role conflict
(C) Interdepartmental conflict (D) Hierarchical conflict

7. List – I consists of Motivation theories and List – II consists of the Motivation theorists.
You have to match them and indicate the correct match as per code :
List – I List – II
a. Two-factor theory i. David McClelland
b. ERG theory ii. Fredrick Herzberg
c. Theory X and Theory Y iii. Douglas McGregor
d. Need theory iv. Clayton Alderfer
Codes :
a b c d
(A) ii iv iii i
(B) i ii iii iv
(C) i iv ii iii
(D) iv iii ii i

8. The conflict over content and goals of the work is called

(A) Functional conflict (B) Process conflict
(C) Relationship conflict (D) Task conflict

9. _________ theory of motivation ignores the inner state of the individual and concentrates
solely on what happens when he or she takes some action.
(A) Equity (B) Expectancy
(C) Goal-setting (D) Reinforcement

10. In the “Big Five” personality factors widely accepted personality traits are mentioned. The
trait of being dependable, organized, conforming and persevering on tasks is called
(A) Extroversion (B) Conscientiousness
(C) Agreeableness (D) Emotional stability
Paper-II 4 D-17-14
11. Given below are four statements. Some of the statements are incorrect. You have to
choose the correct one.
(A) A satisfied employee is a motivated employee.
(B) Employees who are happy “being around” are good contributors to the organization.
(C) Motivated employees do not need engagement.
(D) Customer loyalty has been found to be positively correlated with employee
engagement.

12. The author of the book ‘The World is Flat : A Brief History of the Twenty First Century’ is
(A) Thomas L. Friedman (B) Raghuram Rajan
(C) Michael Armstrong (D) Vineet Nayyar

13. ESOP stands for __________ and was developed by __________

(A) Employee Stock Ownership Plans; Wallace Forbes
(B) Employee Stock Ownership Programs; Louis Kelso
(C) Employee Stock Ownership Plans; Louis Kelso
(D) Employee Share Ownership Programs; Louis Kelso

14. Match items given in List – I, with those in List – II :

List – I List – II
a. Predictive analytics to help i. Job Specification
anticipate the result of HR
strategy
b. Statement of purpose, scope, ii. Ernest J. McCormick
duties, task and
responsibilities of job
c. Position Analysis iii. Job Description
Questionnaire
d. Statement of qualifications and iv. Workforce Analytics
qualities required of an
employee to be successful
Indicate the correct code :
Codes :
a b c d
(A) iv iii ii i
(B) i ii iii iv
(C) i iv ii iii
(D) ii iv i iii
Paper-II 6 D-17-14
15. Match the items of List – I and List – II :
List – I List – II
a. Procedural Rules i. An interim or final determination of
any industrial dispute
b. Managerial Aspects ii. Terms and conditions of
employment and control on
transfers, promotions etc
c. Substantial Rules iii. Mechanism of dealing with
interpretation and implementation of
agreements
d. Award iv. Assignment of work and adjustment
of workforce
Indicate the correct code :
Codes :
a b c d
(A) iv ii i iii
(B) iii iv ii i
(C) i ii iii iv
(D) ii iii iv i

16. Consider the following two statements :

Statement I : Bond value would decline when the market rate of interest rises.
Statement II : There is a positive relationship between the value of a bond and the
interest rate .
Select the correct code :
Codes :
(A) Statement I and Statement II both are correct.
(B) Statement I is correct, but Statement II is incorrect.
(C) Statement II is correct, but Statement I is incorrect.
(D) Statement I and Statement II both are incorrect.

17. Match the following techniques of capital budgeting given in List – I, with one of the
Characteristics given in List – II and select the correct code :
List – I List – II
a. NPV i. Under certain circumstances its reciprocal is
a good approximation of the rate of return.
b. IRR ii. Shareholder’s wealth maximisation
c. Profitability iii. Possibility of multiple outcomes in single
Index calculation
d. Payback period iv. Measure of projects’ relative profitability
Codes :
a b c d
(A) i ii iii iv
(B) ii iii iv i
(C) iii iv i ii
(D) iv i ii iii
Paper-II 8 D-17-14
18. In the case of redeemable debentures issued at discount and to be redeemed at par,
approximate cost of debenture (before tax adjustment) will be equal to
(A) rate of interest
(B) amount of interest divided by issue price
(C) amount of interest divided by par value
[par value – issue price]
amount of interest + tenure of debenture
(D) (par value + issue price)
2

19. While granting the term loan, if lending institution puts a condition to reduce the debt-
equity ratio by issuing additional equity share-capital or preference share capital, it is
known as
(A) asset-related restrictive covenant
(B) cash flow related restrictive covenant
(C) control related restrictive covenant
(D) liability related restrictive covenant

20. According to Lintner’s model of corporate dividend behaviour, the dividend for the year
‘t’ is dependent on :
I. earnings per share for the year t
II. dividend per share for the year t-1
III. adjustment rate
IV. target pay-out ratio
V. market price of share
Select the correct code :
(A) I, II and III are correct.
(B) II, III, IV and V are correct.
(C) I, II, III and IV are correct.
(D) I, II, IV and V are correct.
Paper-II 10 D-17-14
21. Which of the following concepts holds that consumers prefer the products which are
easily available and are inexpensive ?
(A) The product concept
(B) The production concept
(C) The selling concept
(D) The marketing concept

22. ________ is the added value endowed to a product or service.

(A) Brand equity (B) Brand image
(C) Brand loyalty (D) Brand preference

23. Match the items/persons included in List – I with the items in List – II and indicate the
correct pairing through codes given below :
List – I List – II
a. CCI i. Consumer buying decision process
b. Cognitive dissonance ii. ‘Marketing Myopia’
c. Everett M. Rogers iii. Diffusion of Innovation
d. Theodore Levitt iv. Predatory pricing
Codes :
a b c d
(A) iv iii ii i
(B) iii iv ii i
(C) i ii iv iii
(D) iv i iii ii

24. The step after ‘concept testing’ in the new product development process is
(A) Business analysis
(B) Marketing strategy development
(C) Product development
(D) Test marketing

25. When the total market expands, the _________ usually gains the most.
(A) Market challenger
(B) Market leader
(C) Market follower
(D) Market nicher
Paper-II 12 D-17-14
26. ‘Large output per unit of space’ is an orientation of which type of plant layout ?
(A) Product layout
(B) Process layout
(C) Fixed-Position layout
(D) Cellular layout

27. Which of the following steps is the first step in production scheduling ?
(A) Sequencing
(B) Loading
(C) Expediting
(D) Classifying

28. A defence equipment manufacturing company uses bolts at a constant rate of 10000 kg per
year. The bolt cost 80 per kg and the company estimates that it costs 400 to place an
order and the carrying cost of inventory is 10 percent per year. How frequently should
orders for bolts be placed ?
(A) 5
(B) 10
(C) 15
(D) 20

29. The number of allocated cells in the optimal solution table of a transportation problem
having m origins and n destinations is
(A) m + n – 1
(B) m + n –1 or more
(C) m + n –1 or less
(D) m + n

30. The co-efficient of artificial variable in a Maximization problem of LP is

(A) M
(B) –M
(C) 0
(D) 1
Paper-II 14 D-17-14
 8!
31. If p = 0.6 for a particular Bernouli process, the calculation (0.6)5 (0.4)3 indicates
5! × 3!
the probability of happening of
(A) 5 or more successes in eight trials
(B) 3 or more successes in eight trials
(C) Exactly 5 successes in eight trials
(D) Exactly 3 successes in eight trials

32. Chebyshev’s theorem provides that at least 89% of the values will lie within ± 3 standard
deviations from the mean for
(A) Bell-shaped distributions
(B) Positively-skewed distributions
(C) Negatively-skewed distributions
(D) All distributions

33. How many degrees of freedom should be used to apply chi-square test statistic on a
contingency table, having 5 rows and 4 columns ?
(A) 20
(B) 12
(C) 7
(D) 9

34. The ________ and its alternative provides the ability to serve dynamic content to browsers.
(A) Common Gateway Interface
(B) Cryptography
(C) General Pocket Radio Service
(D) Cellular Digital Pocket Data

35. Which is the most suitable domain extension for an Indian NGO to do e-business ?
(A) .gov
(B) .com
(C) .org
(D) .us
Paper-II 16 D-17-14
36. At which level in the company should market-oriented strategic planning begin ?
(A) Corporate level
(B) SBU level
(C) Marketing Department’s level
(D) Brand Manager’s level

37. Which of the following statements is not true ?

(A) A group of firms following the same strategy in a market is called a ‘strategic-
group’.
(B) The members of strategic group are the key competitors.
(C) The type of competition among them is known as generic competition.
(D) The height of entry barriers differ for each group.

38. In India Proctor & Gamble (P & G) (Home products division) is following the strategy of
(A) Cost leadership
(B) Differentiation
(C) Broad differentiation
(D) Focussed differentiation

39. Today, mobile phones have many features such as camera, GPS, Internet, music and video
recording. This is an example of
(A) Convertibility of Industries
(B) Combination of Industries
(C) Competition among Industries
(D) Convergence of Industries

40. An organisation that is downsizing to reduce cost is implementing a strategy of

(A) Growth
(B) Focus
(C) Renewal
(D) Stability
Paper-II 18 D-17-14
41. Who propounded entrepreneurship as a theory of business ?
(A) Daniel Goleman
(B) Joseph A. Schumpeter
(C) Thomas A. Coleman
(D) Warren Buffet

42. Who among the following is not the first generation entrepreneur ?
(A) Dhirubhai Ambani
(B) Shiv Nadar
(C) K. Anji Reddy
(D) G.D. Birla

43. Which of the following is not a possible route to market entry for a small business
owner/entrepreneur ?
(A) Franchise
(B) Corporate Venture
(C) Outright Purchase
(D) Buy-out

44. The number of items which can be exclusively manufactured in the small scale sector are
(A) 20 items
(B) 35 items
(C) 50 items
(D) 62 items

45. Which of the following is an external reason for the sickness of a small business ?
(A) Choice of an idea
(B) Inadequate finance
(C) Volatile business environment
(D) Lack of vertical and horizontal integration

46. In view of competitive global economy, corporations are involved in cost cutting,
corporate restructuring, mergers and acquisitions and downsizing. All these activities can
be carried out successfully only if there is proper
(A) Business Ethics
(B) Ethical Audit
(C) Corporate Social Responsibility
(D) Corporate Governance
Paper-II 20 D-17-14
47. Statement (A) : Law and moral standards overlap to a certain extent.
Statement (B) : Law represents a minimum set of standards for regulating human
behaviour in society.
(A) (A) and (B) both are incorrect.
(B) (A) is correct but (B) is not the right explanation of (A).
(C) (A) is correct and (B) is the right explanation of (A).
(D) (A) is incorrect and (B) is a correct statement in isolation.

48. In order to check the growing unethical practices in the field of information technology,
the first cyber law passed in India is
(A) Information Technology Act
(B) Anti-hacking Law
(C) Cyber Law
(D) E-commerce Law

49. Match the items of two lists, indicating the correct code :
List – I List – II
a. Transparency i. All stakeholder groups have the
opportunity to maintain or improve
their well being.
b. Equity ii. The State of being answerable for
decisions and activities to all
stakeholders.
c. Sustainability iii. Information freely available and
directly accessible to interested
parties.
d. Accountability iv. The effect which action taken in the
present has upon the options
available in the future.
Codes :
a b c d
(A) iii i iv ii
(B) i ii iii iv
(C) ii iii i iv
(D) iii i ii iv

50. Which of the following is not a principle of CSR ?

(A) Protecting Environment
(B) Avoiding price discrimination
(C) Promotional activities
(D) Adopting the labour policies
_____________
Paper-II 22 D-17-14
 MANAGEMENT
PAPER - II

Note : This paper contains fifty (50) objective type questions of two (2) marks each. All questions
are compulsory.

1. If the demand for using the Noida express way is given by :

Q540,00022500P

Where Q is the number of users (vehicles) and P is the amount of toll collected per unit who
uses the express way. In light of this information which of the following is true :

(1) At P5` 6 and Q514,000 ; demand is price inelastic.

(2) At P5` 7 and Q516,500 ; demand is unitary elastic.

(3) At P5` 4 and Q59,500, demand is price elastic.

(4) All of the above

2. If a 100% scale-efficient plant has 92% technical efficiency and 88.5% allocative-efficiency,
then its overall efficiency will be :

(1) 88.5% (2) 90.25% (3) 93.0% (4) 81.42%

3. The market share data for an industry, comprising five companies, is given below :

Company Market Share(%)

A 35

B 25

C 18

D 12

E 10

This industry’s three-firms Herfindahl-Hirschman index shall be :

(1) 0.234 (2) 0.217 (3) 0.151 (4) 0.0175

J-1715 !J-1715-PAPER-II! 2 Paper-II

4. For an economy which consist of single automobile maker and that in year 2014, 30,000
vehicles are produced with an average price of ` 5 lakh. For this economy what would be
the increase in the nominal GDP for 2015 compared with 2014 with the 4% greater automobile
production and 8% inflation.

(1) 4.0% (2) 12.0% (3) 6.0% (4) 12.32%

5. Demand policies targeted to reduce the unemployment become ineffective in presence of the
following :

(1) Vertical phillips curve (2) Money illusion and ignorance among workers

(3) Horizontal phillips curve (4) None of the above

6. An individual’s involvement with, satisfaction and enthusiasm for, the work he does, is known
as :

(1) Employee engagement (2) Job involvement

(3) Job satisfaction (4) Organisational commitment

7. Which of the following is not perceived as the basic element of motivation ?

(1) Direction (2) Intensity (3) Performance (4) Persistence

8. A theory of motivation that is concerned with the beneficial effects of intrinsic motivation
and the harmful effects of extrinsic motivation, is termed as :

(1) Cognitive Evaluation Theory (2) Self-efficiency Theory

(3) Self-determination Theory (4) Two-factor Theory

J-1715 !J-1715-PAPER-II! 4 Paper-II

9. Match the items of List I with those of List II.

List I List II

Behavioural science Contribution

(a) Anthropology (i) Attitude change

(b) Psychology (ii) Attitude measurement

(c) Social psychology (iii) Conflict

(d) Sociology (iv) Organisational culture

Codes :

(a) (b) (c) (d)

(1) (i) (ii) (iii) (iv)

(2) (iv) (ii) (i) (iii)

(3) (iv) (ii) (iii) (i)

(4) (ii) (iv) (iii) (i)

10. A relatively stable set of characteristics that influence an individual’s behaviour is known
as :

(1) Attitude (2) Learning (3) Perception (4) Personality

11. Assertion (A) : The more differentiated the HR environment, the more uncertain it shall be :

Reason (R) : Organisations are dependent in an environment where human resources are
not widely available.

(1) Both (A) and (R) are correct

(2) (A) is correct and (R) is the right explanation of (A)

(3) (A) is correct but (R) is not the right explanation of (A)

(4) Both (A) and (R) are incorrect

J-1715 !J-1715-PAPER-II! 6 Paper-II

12. Which one of the following is a type of interview where a series of job-related questions are
asked that focus on how the candidate would behave in a given situation ?
(1) Behavioural interview (2) Job-related interview
(3) Situational interview (4) Structured interview

13. Consider the following statements :

(a) Sensitivity training was developed by Kurt Lewin
(b) In-basket excercise is a simulated training method
(c) Depth interview is also known as Directive Interview
(d) Job evaluation is carried out for promoting job satisfaction
Which of the above statements are true ?
(1) Only (a) and (c) (2) Only (a) and (b)
(3) (a), (b) and (c) (4) (b), (c) and (d)

14. Behaviourally Anchored Rating Scale (BARS) consists of the following steps :
(a) Reallocate incidents
(b) Develop performance dimensions
(c) Generate critical incidents
(d) Develop final statements
The correct chronological order of these steps is :
(1) (a), (b), (c), (d) (2) (b), (c), (a), (d)
(3) (c), (b), (a), (d) (4) (a), (c), (b), (d)

15. Consider the following elements :

(a) Actors
(b) Inputs
(c) Context
(d) Output
(e) Ideology
Which of these are not the elements of John T.Dunlop’s Framework of Industrial Relatives
System ?
(1) (a) and (b) (2) (a) and (e) (3) (b) and (d) (4) (a) and (d)

J-1715 !J-1715-PAPER-II! 8 Paper-II

16. State the price of the share for the year t, if the rate of growth of the firm is 10%, EPS and
DPS for the year t11, are ` 3 and ` 2 respectively and the investors’ required rate of return is
20%.

(1) ` 30 (2) ` 20 (3) ` 25 (4) ` 10

17. In which of the following appraisal criteria of capital budgeting, the use of varying
opportunity cost of capital as a discount factor is possible ?

(a) NPV (b) IRR (c) Pay-back Period (d) ARR

(1) Only (a) is correct. (2) (a) and (b) both are correct.

(3) (b) and (d) both are correct. (4) Only (c) is correct.

18. According to the CAPM model, the cost of equity is represented by :

(1) Rm1(Rm2Rf)bj (2) Rf1(Rm2Rf)bj

(3) bj1(Rm2Rf)Rm (4) Rm1Rf1bj

Where Rm indicates market rate of return, Rf indicates risk free rate of return and bj indicates
beta of stock j

19. Anticipated annual dividend divided by the market price of the stock is referred as :

(1) Dividend Pay-out (2) Dividend yield

(3) Return on Equity (4) Regular dividend

20. If the existing shareholder does not exercise his/her right or does not sell the right
entitlement :

(1) his/her wealth will remain unaffected

(2) his/her wealth will increase

(3) his/her wealth will decrease

(4) his/her wealth may increase or decrease

J-1715 !J-1715-PAPER-II! 10 Paper-II

21. What are the four main components of holistic marketing ?

(1) Integrated Marketing, Internal Marketing, Product Positioning and Performance

Marketing

(2) Integrated Marketing, Relationship Marketing, Social Marketing and Performance

Marketing

(3) Relationship Marketing, Integrated Marketing, Internal Marketing and Performance

Marketing

(4) Relationship Marketing, Integrated Marketing, Internal Marketing and Social Marketing

22. Which of the following category of goods and services is most likely to require an aggressive
use of the selling concept ?

(1) Complementary Goods (2) Luxury Goods

(3) Speciality Goods (4) Unsought Goods

23. The type of marketing that is the most recent to emerge is :

(1) Person marketing (2) Product marketing

(3) Services marketing (4) Social marketing

24. According to the __________ theory, marketers can enhance demand for a product by
associating it with strong drives, using motivating cues and providing positive
re-enforcement.

(1) Demand theory (2) Learning theory

(3) Psychological theory (4) Two-factors theory

25. The most scientifically valid research is :

(1) Experimental Research (2) Observation Research

(3) Focus-Group Research (4) Survey Research

J-1715 !J-1715-PAPER-II! 12 Paper-II

26. Which of the following statements is not correct ?

(1) Product Layout generally has continuous and Mass Production, mainly assembly
function.

(2) Process Layout generally has Intermittent, Job-Shop, Batch Production, mainly
fabrication function.

(3) Product Layout usually has general purpose equipments.

(4) Process Layout is generally driven by fluctuating demand.

27. Six-SIGMA quality indicates :

(1) 2.4 defects per thousand (2) 2.7 defects per thousand

(3) 3.4 defects per thousand (4) 3.7 defects per thousand

28. A manufacturing firm has four work stations, A, B, C and D in series with individual capacity
of processing 450, 390, 360 and 400 units per day respectively and the actual output of the
firm is 306 units per day. The system capacity and system efficiency of the firm shall
respectively be :

(1) 400 and 100% (2) 450 and 120% (3) 360 and 85% (4) 390 and 95%

29. In the simplex method of solving an LP Problem, the product-mix column of the initial
solution contains :

(1) Artificial variables only (2) Slack variables only

(3) Slack and artificial variables only (4) Real variables only

30. If the optimal solution of an LP Problem is degenerate then :

(1) The problem has multiple optimal solutions

(2) The solution is not feasible

(3) The solution is useless to the manager

(4) None of the above

J-1715 !J-1715-PAPER-II! 14 Paper-II

31. If your score in an exam was 80, with a mean of 60, what would be the standardised score
for this exam if the standard deviation is 15 ?

(1) 1.33 (2) 1.25 (3) 1.52 (4) 1.72

32. Spurious relationship between two variables refer to :

(1) Very poor relationship between the variables.

(2) Statistically insignificant relationship between the variables.

(3) Relationship happens only due to third variable which is common to both the
variables.

(4) The relationship which is impossible to measure.

33. In a medical test, where the null hypothesis is : ‘The patient does not have the disease’ and
the alternative hypothesis is : ‘ The patient has the disease’. Suppose a patient has a disease
and needs treatment. In the hypothesis testing process, which of the following errors is more
serious than the others.

(1) Type - I error (2) Type - II error

(3) Both Type - I and Type - II error (4) r - error

34. Decision support system does not use :

(1) Analytical models (2) Specialized databases

(3) File server (4) Computer - based modelling process

35. Give the correct order of the stages in ‘System Development’.

(1) Testing ® Programming ® Systems Design ® Systems Analysis ® Conversion ®

Production and Maintenance

(2) Programming ® Testing ® Systems Analysis ® Systems Design ® Conversion ®

Maintenance

(3) Systems Analysis ® Systems Design ® Programming ® Testing ® Conversion ®

Production and Maintenance

(4) Production and Maintenance ® Testing ® Conversion ® Programming ® Systems

Design ® Systems Analysis

J-1715 !J-1715-PAPER-II! 16 Paper-II

36. Which of the following statements is correct ?
(1) Balanced score cards always report using the same time periods as the financial
accounting system.
(2) One fundamental idea of balanced score card is to increase the number of performance
indicators used to manage the business.
(3) Organisations some times use a “traffic light” system on their balanced score card to
help them prioritise their activities.
(4) The fundamental idea of balanced score cards is to create corporate strategy.

37. What metaphor is used to describe the competitive space where product are not yet well
defined, competitors are not well-organised and the market is relatively unknown ?
(1) Blue Lagoon (2) Blue Ocean (3) Red Sea (4) Red Ocean

38. Michael E. Porter’s five generic strategies are :

(1) Differentiation (Best Value). Differentiation (Low Cost), Cost Leadership (Large), Cost
Leadership (Small), Focus
(2) Focus (Large), Focus (Small), Cost Leadership (Small), Cost Leadership (Large),
Differentiation
(3) Cost Leadership (Low Cost), Cost Leadership (Best Value), Differentiation,
Focus (Low Cost), Focus (Best Value)
(4) Cost Leadership (Large), Cost Leadership (Small), Differentiation (Large),
Differentiation (Small), Focus

39. One of the strategic decisions relating to the value chain concerns vertical integration. This
would involve :
(1) Deciding to link all activities using Enterprise Resource Planning.
(2) Deciding whether the activity should be performed within the organisation or by a
different firm.
(3) Deciding whether to locate operation in the home country or in a foreign location.
(4) Deciding whether to share certain activities across different products and markets.

40. “Pepsi Co launched a hostile take over of Pepsi Bottling Group after its $ 4.2 billion offer was
rejected”. Which strategy was used in this case ?
(1) Market Penetration (2) Backward Integration
(3) Horizontal Integration (4) Forward Integration

J-1715 !J-1715-PAPER-II! 18 Paper-II

41. Who viewed entrepreneur as a non-fixed income earner with known costs of production but
uncertain income and therefore, operating at a risk ?

(1) Adam Smith (2) Richard Contillon

(3) Jean-Baptiste Say (4) Francis Wolker

42. Which one of the following is not a major area of entrepreneurial innovation as suggested by
Joseph Schumpeter ?

(1) Product innovation (2) Process innovation

(3) Market innovation (4) Structural innovation

43. Which one of the following types of entrepreneurs are not proactive in nature and does not
respond much to changes in the environment ?

(1) Fabian entrepreneur (2) Adoptive entrepreneur

(3) Drone entrepreneur (4) Innovative entrepreneur

44. SFURTI (Scheme of fund for regeneration of traditional industries) is implemented by :

(1) Union Ministry of Traditional Industries

(2) National Agricultural cooperative Marketing Federation

(3) Federation of Indian Chamber of Commerce and Industry

(4) Union Ministry of Micro, Small and Medium Enterprises

45. According to the Tiwari Committee report, which one of the following is not an internal
cause of industrial sickness in India ?

(1) Lack of manpower planning (2) Lack of control systems

(3) Excessive expenditure (4) Excessive tax policies

46. Which of the following is/are the component(s) of Ethics by field of interest ?

(1) Descriptive ethics (2) Normative ethics

(3) Meta ethics (4) All of the above

J-1715 !J-1715-PAPER-II! 20 Paper-II

47. What is the right sequence of four psychological sub-processes in ethical action given by
James Rest ?

(1) Moral sensitivity, moral focus, moral judgment, moral character

(2) Moral focus, moral character, moral sensitivity, moral judgement

(3) Moral sensitivity, moral judgement, moral focus, moral character

(4) Moral character, moral focus, moral judgement, moral sensitivity

48. A new approach “Learning Model” which is helpful to strengthen the decision making process
was developed by :

(1) Arthur Rich (2) Bob Garratt (3) Christian Wolff (4) Lord Keynes

49. Assertion (A) : Corporate behaviour towards stakeholders is an important concept in

practice and a central part of corporate Governance.

Reason (R) : It has to be ethical, legal and responsible behaviour for organisation,
stakeholders and society.

(1) Both (A) and (R) are true.

(2) Both (A) and (R) are false.

(3) (A) is false, but (R) is true.

(4) (A) is true, but (R) is not a correct explanation of (A).

50. CSR is important because :

(1) It influences all aspects of Company’s operation

(2) It gives company’s mission and strategy

(3) It increases the general affluence and societal expectation

(4) All of the above

-o0o-

J-1715 !J-1715-PAPER-II! 22 Paper-II

 MANAGEMENT
PAPER - II

Note : This paper contains fifty (50) objective type questions of two (2) marks each. All questions
are compulsory.

1. Which one of the following assumptions is not related to consumer behaviour based on the
cardinal utility approach ?
(1) Rationality
(2) Diminishing marginal utility of money
(3) Utility cardinally measurable
(4) Maximization of satisfaction with limited money income

2. Statement – I : A rectangular hyperbola shaped demand curve has uniform slopes on all
its points.
Statement – II : If the price elasticity is equal to unity, the marginal revenue corresponds to
zero.
Code :
(1) Both the statements are correct
(2) Both the statements are incorrect
(3) Statement – I is correct while Statement – II is incorrect
(4) Statement – I is incorrect while Statement – II is correct

3. Match the items of List – I with the items of List – II and find the correct combination :
List – I List – II
(Market Structure) (Nature of industry where prevalent)
(a) Perfect competition (i) Aluminium and passenger cars
(b) Oligopoly (ii) Public utilities like Telephones and Electricity
(c) Monopoly (iii) Manufacturing : T.V. Sets, Refrigerators
(d) Monopolistic competition (iv) Farm Products : Grains
Code :
(a) (b) (c) (d)
(1) (i) (ii) (iii) (iv)
(2) (iv) (i) (ii) (iii)
(3) (iii) (iv) (i) (ii)
(4) (ii) (iii) (iv) (i)

4. Statement – I : In general, the NPV and IRR methods lead to the same acceptance or
rejection decision when a single project is involved.
Statement – II : The inconsistency in ranking of competing projects as per the NPV and IRR
methods lies in the implicit assumptions with regard to different rates of
returns on re-investment of intermediate cash flows.
Code :
(1) Both statements are correct
(2) Both statements are incorrect
(3) Statement – I is correct while Statement – II is incorrect
(4) Statement – I is incorrect while Statement – II is correct

D-1715 !D-1715-PAPER-II! 2 Paper-II

5. Which one of the following is not covered in macro-economics ?
(1) Performance of the entire economy
(2) Price and output determination of a commodity
(3) Factors and forces of economic fluctuations
(4) Monetary and fiscal policies

6. Match the below mentioned aspects with their main behavioural disciplines :
Aspects Behavioural discipline
(a) Leadership and stress management (i) Psychology
(b) Group conflict management (ii) Anthropology
(c) Cross-cultural analysis (iii) Sociology and Psychology
(d) Power (iv) Political science
Code :
(a) (b) (c) (d)
(1) (iv) (i) (ii) (iii)
(2) (ii) (iii) (i) (iv)
(3) (i) (iv) (ii) (iii)
(4) (iv) (ii) (iii) (i)

7. The operant conditioning or learning approach to behaviour is based on __________.

(1) Law of reinforcement (2) Law of effect
(3) Law of reproduction (4) Law of expectations

8. The principles by which the process of perceptual organization works was first identified by
Max Wertheimer in the year __________.
(1) 1918 (2) 1933 (3) 1924 (4) 1923

9. The __________ leadership theory of __________ describes that effective group performance
depends on the proper match between the leader’s style if interacting with his subordinates
and the degree to which the situation gives control and influence to the leader.
(1) ‘Iowa State Leadership Studies’; Ronald Lippitt and Ralph K. White
(2) ‘Managerial Grid’; Blake and Mouton
(3) ‘Trait Theory’; Stodgill and Barnard
(4) ‘Contingency Model’; Fred Fiedler

D-1715 !D-1715-PAPER-II! 4 Paper-II

10. When one individual or group wins at the expense of another individual or group, it is
termed as __________.
(1) Zero-sum conflict (2) Non-zero sum conflict
(3) Line-staff conflict (4) Formal-informal conflict

11. Which one of the following statements is not true in the case of Human Resource
Management ?
(1) It performs developmental function
(2) Employees are motivated by salary
(3) It is proactive in nature
(4) It consists of various sub-systems

12. Match the items given in the List – I and List – II and choose the correct option :
List – I List – II
(a) Personnel replacement chart (i) A chart prepared for each position in a
company to show possible replacement
candidates and their qualifications
(b) Job posting (ii) The ongoing process of systematically
identifying, assessing and developing
organizational leadership to enhance
performance
(c) Succession planning (iii) Company records showing present
performance and promotability of inside
candidates for the most important positions
(d) Position replacement card (iv) Publicizing an open job to employees and listing
its attributes, like qualifications, supervisor,
working schedule, etc.
Code :
(a) (b) (c) (d)
(1) (ii) (i) (iii) (iv)
(2) (iii) (i) (iv) (ii)
(3) (iv) (ii) (i) (iii)
(4) (iii) (iv) (ii) (i)

13. Which one of the following training methods is not a managerial ‘on-the-job training
method‘ ?
(1) Coaching (2) Action Learning
(3) Job Rotation (4) Management Games

14. __________ to deal with employee indiscipline provides the offender every opportunity to
state his side of the case.
(1) Punitive approach (2) HRD approach
(3) Humanistic approach (4) Judicial approach

D-1715 !D-1715-PAPER-II! 6 Paper-II

15. Which one of the following is a disadvantage of Critical Incident Method as a tool of
performance appraisal ?
(1) Difficult to rate or rank employees relative to one another
(2) Time - consuming
(3) Can cause disagreements among employees and may be unfair if all employees are, in
fact, excellent
(4) Employee’s appraisal results depend on employer’s choice of cut-off points

16. If raw materials are in store for 2 months, processing time 2½ months, finished goods remain
in store for 15 days, debtors are allowed 60 days’ credit and credit received from suppliers of
raw material is one month, the operating cycle period is :
(1) 7 months (2) 6 months (3) 6½ months (4) 5 months

17. Which of the following is not general disclosure requirement under Accounting
standard-14 ?
(1) Name and nature of Business (2) Description and number of shares issued
(3) Accounting method followed (4) Particulars of scheme sanctioned

18. Under the Modified Accelerated Cost Recovery System (MACRS) an asset in the “5 year
property class” would typically be depreciated over how many years ?
(1) 4 years (2) 5 years (3) 6 years (4) 7 years

19. According to the concept of financial signalling, management behaviour results in new debt
issues being regarded as “__________ news” by investors.
(1) Non-Event (2) Bad (3) Risk Neutral (4) Good

20. The Exchange of interest and/or principal payment between two parties are called :
(1) Swap (2) In the money (3) Forward (4) Put option

21. From the following set of information, which combination is correct to define the process of
perception in order to understand consumer behaviour ?
(a) Selective Attention (b) Selective Distortion
(c) Selective Retention (d) Selective Apprehension
Code :
(1) Only (a) and (d) are correct (2) Only (a), (b) and (d) are correct
(3) Only (b), (c) and (d) are correct (4) Only (a), (b) and (c) are correct

D-1715 !D-1715-PAPER-II! 8 Paper-II

22. When the company’s Salesperson contacts the customer from time to time with Suggestions
about improved uses of the product or additional new range of products, then it is
called as :
(1) Proactive Marketing (2) Accountable Marketing
(3) Reactive Marketing (4) Relationship Marketing

23. A state of demand where major part of the market dislikes the product and may even pay a
price to avoid it, may be called as :
(1) Declining Demand (2) Overfull Demand
(3) Negative Demand (4) Distractive Demand

24. When the Companies pay less attention to its own costs or demands and bases its price
largely on competitors’ prices, then it is known as :
(1) Value Pricing (2) Going rate pricing
(3) Image pricing (4) Psychological pricing

25. From the given columns which of the combinations best describe the concepts of product
hierarchy ?
(a) Need family (i) The core need that underlines the existence of a product
family
(b) Product family (ii) Group of items within a product line that share one of
several possible forms of the product
(c) Product class (iii) Group of products within the product family recognized
as having a certain functional coherence
(d) Product line (iv) All the product classes that can satisfy a core need with
reasonable effectiveness
Code :
(1) Only (a) - (i), (b) - (iv) and (c) - (iii) are correct
(2) Only (a) - (i), (b) - (iii) and (c) - (iv) are correct
(3) Only (b) - (iv), (c) - (iii) and (d) - (ii) are correct
(4) (a) - (i), (b) - (iii), (c) - (ii) and (d) - (iv) are correct

26. An input (such as variable cost per unit or fixed cost) for a model is an example of a(n) ?
(1) Stochastic variable (2) Decision variable
(3) Algorithm (4) Parameter

D-1715 !D-1715-PAPER-II! 10 Paper-II

27. Match the items of List – I and List – II and indicate the correct code :
List – I List – II
Operations Management Activities
Functions
(a) Capacity planning (i) Setting policy guidelines and procedural details of
making a watch
(b) Quality Management (ii) The steering of the cars loaded in trucks reaches the
assembly line every morning and evening
(c) Process Design (iii) Establishing rules and policies of which tablets are
to be accepted and others not to be
(d) Location and Layout of (iv) A hospital can largely serve 500 patients at any time
facilities
Code :
(a) (b) (c) (d)
(1) (iv) (iii) (i) (ii)
(2) (iv) (i) (iii) (ii)
(3) (ii) (iii) (i) (iv)
(4) (ii) (i) (iii) (iv)

28. Car enters the drive-through of a fast food restaurant to place an order, and then it proceeds
to pay for the food, and pick up the order. This is an example of :
(1) a multiphase system (2) a multichannel system
(3) a multiguaue system (4) a multiphase and multichannel system

29. A manufacturer is considering five alternative locations for setting up its factory. Using the
information given in the table obtain a ranking and tell the best location for setting the
factory ?
Table :

Relative Location Location Location Location Location

Factors
Weight 1 2 3 4 5
Availability of
0.28 20 40 55 35 60
Infrastructure
Size of Market 0.18 30 30 80 60 40

Industrial Relation
0.15 80 30 50 60 50
Climate

Tax Benefits 0.09 80 20 20 20 10

Availability of
0.09 70 70 50 50 45
cheep labour
Nearness to port 0.20 20 40 60 50 90
Code :
(1) Location 2 (2) Location 3
(3) Location 4 (4) Location 1 and Location 5

D-1715 !D-1715-PAPER-II! 12 Paper-II

30. If the project completion time is normally distributed and the due date for the project is
greater than the expected completion time, then the probability that the project will be finished
by the due date is :
(1) undeterminable without more information
(2) less than 0.50
(3) equal to 0.50
(4) greater than 0.50

31. Match the items of List – I with those of List – II and choose the correct code :
List – I List – II
(a) The probability of two events occurring (i) Marginal probability
together or in succession
(b) The probability of occurring one event (ii) Posterior probability
given that another event has occurred
(c) The probability of occurring a single event (iii) Subjective probability
(d) The probability revised in the light of (iv) Joint probability
additional informations
(v) Conditional probability
Code :
(a) (b) (c) (d)
(1) (iv) (v) (i) (iii)
(2) (v) (iv) (ii) (iii)
(3) (v) (iv) (iii) (i)
(4) (iv) (v) (i) (ii)

32. Consider the following statements relating to correlation and regression analysis :
Statement I : Correlation is independent of change of scale, but not of origin
Statement II : Correlation denotes co-variability between the variables
Statement III : Regression is a relative measure of relationship between variables
Statement IV : Regression is independent of change of origin but not of scale
Choose the correct option :
(1) Statements I, II and IV are correct
(2) Statements II, III and IV are correct
(3) Statements II and III are correct
(4) Statements II and IV are correct

33. Which of the following is not a technology driver for an information system ?
(1) Knowledge asset management (2) Enterprise applications
(3) Object technologies (4) Networks and internet

34. ‘Negandhi Estafen’ is recognised as a good model for the analysis of :

(1) Organisational effectiveness (2) Management effectiveness
(3) Organisational growth (4) Organisation behaviour

D-1715 !D-1715-PAPER-II! 14 Paper-II

35. A self contained internet program designed to be used in a specific environment is :
(1) Active – X (2) Application programme interface
(3) Applet (4) Artificial intelligence

36. A company manages multiple strategies for it’s multiple markets and multiple products
through which one of the following ?
(1) Strategic Planners (2) Strategic Business Units
(3) Strategic Windows (4) Strategic Technology

37. Match the items of List – I with List – II :

List – I List – II
(a) Technical Innovation Strategy (i) Foreign producer gives a straight copy
(b) Product Adaptation Strategy (ii) Perceived and demonstrable superior
products
(c) Availability and Security Strategy (iii) Modifications to existing products
(d) Total Adaptation and Conformity (iv) Overcome transport risk by countering
Strategy perceived risks
Code :
(a) (b) (c) (d)
(1) (iii) (ii) (i) (iv)
(2) (ii) (iii) (iv) (i)
(3) (i) (ii) (iii) (iv)
(4) (ii) (iii) (i) (iv)

38. Only diversified company with a balanced portfolio can use its strengths to truly capitalise
on its growth opportunities. Hence the balanced portfolio contains :
(1) Stars whose high share and high growth assure the future
(2) Cash cows that supply funds for their future growth
(3) Question marks to be converted into stars with the added funds
(4) All of the above

39. Porter’s Generic Strategies identified three basic catagories of strategies to include which one
of the following combinations ?
(1) High Cost Producer, differentiation and cost control
(2) Low Cost Producer, differentiation and focused Niche
(3) Specific strategic issues, vertical integration strategies and supply strategy
(4) Managerial resources, profitability and focused Niche

D-1715 !D-1715-PAPER-II! 16 Paper-II

40. The stages of corporate development provide a way for the strategic manager to analyse :
(1) Personal objectives, entrepreneurial skill
(2) Managerial abilities, opportunity and threats
(3) Frequently encountered version, functional management
(4) Competitiveness, aggresiveness

41. Which of the following are included as external factors affecting industrial sickness ?
(a) Changes in fiscal and monetary policies
(b) Price and distribution
(c) Non-availability of inputs
(d) Industrial relations
(e) Capital market fluctuations
Code :
(1) (a), (b), (c) and (d) (2) (b), (c), (d) and (e)
(3) Only (a), (b) and (c) (4) (a), (b), (c), (d) and (e)

42. Statement (I) “Motivation is a continuous, complex and dynamic process”.

Statement (II) “As compared to other industries, extra motivation is required in service
sector industries”.
(1) Statement (I) is correct but Statement (II) is incorrect.
(2) Statement (II) is correct but Statement (I) is incorrect.
(3) Both, Statement (I) and (II) are correct.
(4) Both, Statement (I) and (II) are incorrect.

43. Assertion (A) : The function of entrepreneurs is to reform or revolutionise the pattern of
production by exploiting an invention or, more generally, an untried
technological possibility for producing a new commodity or producing an
old one in a new way.
Reasoning (R) : Lack of innovations will usually reduce the life span of a product and/or
service.
Code :
(1) Assertion (A) and Reasoning (R), both, are correct, and (R) is correct explanation
of (A).
(2) Assertion (A) and Reasoning (R), both, are correct, but (R) is not right explanation
of (A).
(3) Assertion (A) is correct, whereas Reasoning (R) is incorrect.
(4) Reasoning (R) is correct, whereas Assertion (A) is incorrect.

D-1715 !D-1715-PAPER-II! 18 Paper-II

44. A business idea becomes a good business opportunity when it covers which four of the
following ?
(a) Attractiveness (b) Foreign Collaborations
(c) Political Support (d) Timeliness
(e) Durability (f) Value addition to end user
Code :
(1) (a), (b), (d) and (e) (2) (a), (b), (e) and (f)
(3) (a), (d), (e) and (f) (4) (b), (c), (e) and (f)

45. Which of the following are correct for an entrepreneur ?

(a) is an independent person
(b) makes his/her own decisions
(c) has the opportunity of realising dreams
(d) has good financial strength
(e) has undergone a systematic business training
(f) has immense job satisfaction
Code :
(1) (a), (b), (c) and (d) (2) (a), (b), (c) and (e)
(3) (a), (b), (c) and (f) (4) (a), (b), (d) and (f)

46. Assertion (A) : Social audit has been defined as a commitment to systematic assessment of
and reporting in some meaningful, definable domain of the company’s
activities that have social impacts.
Reasons (R) : The Companies Act 2013 has accorded statutory recognition of the social
responsibility of a corporate entity and gives option to provide a percentage
of profit for the purpose as per discretion of the board.
Code :
(1) Both (A) and (R)are correct, and (R) is the right explanation of (A).
(2) Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(3) (A) is correct but (R) is not correct.
(4) (R) is correct but (A) is not correct.

D-1715 !D-1715-PAPER-II! 20 Paper-II

47. Which one of the following of ‘Immanuel Kant’s’ Principle, known as categorical imperatives,
is a guide to managerial action ?
(1) The managers should be open to share his/her corporate secrets, individual traits with
external agencies.
(2) The managers be free and open to share his individual knowledge and experience for
community’s gain.
(3) A person’s action is ethical only if that person is willing for that same action to be taken
by everyone who is in a similar situation.
(4) A person always treats another human being simply as a means to an end.

48. Teleology in ethics supports which one of the following the most ?
(1) It is duty-based ethics and measures whether an action is right or wrong.
(2) It measures whether the results of the actions are right or wrong.
(3) It focuses on purpose of each action and judges the consequences of an action.
(4) It focuses on neutrality and fidelity of an action.

49. Assertion (A) : Deontology is duty-based ethics. It is an approach to ethics that addresses
whether the motives behind certain action are right or wrong.
Reason (R) : Deontology focuses on whether the results of the actions are right or wrong.
Code :
(1) Both (A) and (R) are correct
(2) (A) is correct and (R) is the right explanation of (A)
(3) (A) is correct but (R) is not the right explanation of (A)
(4) Both (A) and (R) are incorrect

50. Assertion (A) : Rules notified by the Ministry of Corporate Affairs (MCA) Sec. 149 of the
Companies Act mandates that a listed company having a paid up share
capital of ` 100 crore or more shall appoint at least one woman director on
its board.
Reasons (R) : The corporate entities wanted to enhance gender equality and woman
empowerment in corporate governance and company administration.
Code :
(1) Both (A) and (R) are correct.
(2) (A) is correct and (R) is the right explanation of (A).
(3) (A) is correct but (R) is not the right explanation of (A).
(4) Both (A) and (R) are incorrect.

-oOo-

D-1715 !D-1715-PAPER-II! 22 Paper-II

 MANAGEMENT
Paper – II
Note : This paper contains fifty (50) objective type questions of two (2) marks each. All
questions are compulsory.

1. The following is the demand function :

Q = 100 – 5P
What will be the point price elasticity of demand at price ` 10 ?
(1) 2.00 (2) 1.00
(3) 0.85 (4) 0.50

2. The short-run cost function of a firm is as under :

TC = 200 + 5Q + 2Q2
What will be the level of output at which AC and MC will be equal ?
(1) 20 (2) 15
(3) 10 (4) 5

3. Match the items of List – I with the items of List – II and select the code of correct
matching :
List – I List – II
a. Sales Revenue Maximization i. Williamson’s Model
b. Maximization of a firm’s growth rate ii. Cyert-March Hypothesis
c. Maximization of Managerial Utility function iii. Baumol’s Theory
d. Satisficing behaviour model iv. Marri’s Theory
Codes :
a b c d
(1) iii iv i ii
(2) i ii iv iii
(3) ii iii i iv
(4) iv iii ii i

4. Assertion (A) : The perceived risk of operating a domestic firm in international

environment is much higher.
Reason (R) : The international environment is more volatile and the domestic firm
generally does not have full information about the environment.
Codes :
(1) Both (A) and (R) are correct.
(2) Both (A) and (R) are incorrect.
(3) (A) is correct while (R) is incorrect.
(4) (A) is incorrect while (R) is correct.

Paper-II 2 J-17-16
5. Statement – I : The accept-reject approach is adopted generally when a firm has a
large amount of funds to invest in several projects at the same time.
Statement – II : Both the NPV and the IRR methods of investment appraisal are based
on discounted cash flow approach.
(1) Both the statements are correct.
(2) Both the statements are incorrect.
(3) Statement – I is correct while Statement – II is incorrect.
(4) Statement – I is incorrect while Statement – II is correct.

6. Which process is used by a person (perceiver) to deal with conflicting messages, and
conflicting data ?
(1) Halo effect (2) The process of checking
(3) Perceptual defence (4) The process of reacting

7. Assertion (A) : The physiological needs are essential for living but they are
determined by social environment.
Reasoning (R) : These needs may be motivators in backward countries but in a
developed country, these needs are supposed to be satisfied, hence,
they may not be considered motivators.
Codes :
(1) Assertion (A) and Reasoning (R), both are correct, but (R) is not right explanation of (A).
(2) Assertion (A) and Reasoning (R), both are correct, and (R) is correct explanation of
(A).
(3) Assertion (A) is correct, whereas Reasoning (R) is incorrect.
(4) Reasoning (R) is correct, whereas Assertion (A) is incorrect.

8. The basic emphasis of _________ theory of organisational design is on flat structure,

decentralization and provision of informal organisation.
(1) Neo-classical theory (2) Modern theory of systems approach
(3) Matrix organisation theory (4) Classical theory

9. The result variables as the component of mathematical model for measuring system’s
effectiveness and efficiency in management science include _____
(1) Measures of performance (2) Measures of effectiveness
(3) Payoffs and outcomes (4) All the above

10. Assertion (A) : Reinforcement plays a central role in the learning process.
Reason (R) : Reinforcement strengthens the response preceding it and induces
repetitions of the response.
Codes :
(1) Both (A) and (R) are correct.
(2) (A) is correct and (R) is the right explanation of (A).
(3) (A) is correct but (R) is incorrect.
(4) Both (A) and (R) are incorrect.

11. Most job descriptions contain sections that cover –

(1) Responsibilities and duties (2) Job summary
(3) Working conditions (4) All of the above
Paper-II 4 J-17-16
12. Match the items of List – I with the items of List – II. The items relate to evaluation and
follow-up of training process.
List – I List – II
a. Results i. Document the learner’s immediate response to the training.
b. Learning ii. Note supervisor’s reactions to learner’s performance
following completion of the training.
c. Reaction iii. Use feedback devices or pre and post tests to measure what
learners have actually gained.
d. Behaviour iv. Determine the level of improvement in job performance
Codes :
a b c d
(1) iii ii i iv
(2) iv iii i ii
(3) i ii iii iv
(4) iv i iii ii

13. Which one of the following processes allows top management to diagnose the
management styles of supervisors, identify potential, employee problems, and take
corrective action with individual supervisors as necessary ?
(1) MBO
(2) Strategic performance appraisal
(3) Organization Development
(4) Upward feedback

14. Statement – I : In competency or skill-based pay, employees are paid for the range,
depth and types of skills and knowledge they are capable of using
rather than for the job they currently hold.
Statement – II : Broadbanding results into increase in salary grades and ranges from 3
or 5 to 10 or more.
Codes :
(1) Only Statement – I is correct.
(2) Only Statement – II is correct.
(3) Both Statements – I and II are correct.
(4) Both Statements – I and II are incorrect.

15. Which one of the following is not a labour law related to wages ?
(1) The Workmen’s Compensation Act, 1923
(2) The Payment of Bonus Act, 1965
(3) The Payment of Wages Act, 1936
(4) The Minimum Wages Act, 1948
Paper-II 6 J-17-16
16. Match the items of List – I with the items of List – II :
List – I List – II
a. Net present value i. Number of years required to recover the original cash
outlay invested in a project.
b. Payback period ii. It is the rate of return which equates the present value
of anticipated net cash flows with the initial outlay.
c. Internal rate of iii. It is found out by dividing the average after-tax profit
return by the average investment.
d. Accounting rate of iv. It is the difference between the present value of cash
return inflows and present value of cash outflows.
Codes :
a b c d
(1) iv iii ii i
(2) iii i iv ii
(3) iii iv i ii
(4) iv i ii iii

17. An employee borrowed a 3 year loan of ` 10,000 at 9% from his employer to buy a
motorcycle. If employer requires three equal end-of-year repayments, then the annual
instalment will be _______.
(1) ` 3,633 (2) ` 3,951
(3) ` 3,333 (4) ` 4,233

18. Match the items of List – I with the items of List – II :

List – I List – II
a. M.M. Hypothesis i. The cost of debt and cost of equity are assumed to
without taxes be independent to the capital structure.
b. Net operating income ii. In the absence of taxes a firm’s market value and
approach the cost of capital remain invariant to the capital
structure changes.
c. M.M. Hypothesis under iii. The cost of equity is assumed to increase linearly
corporate taxes with leverage.
d. Net income approach iv. The value of the firm will increase with debt due to
the deductibility of interest charges for tax
computations and the value of the levered firm will
be higher than the unlevered firm.
Codes :
a b c d
(1) ii iii iv i
(2) ii i iv iii
(3) i ii iii iv
(4) iii iv i ii
Paper-II 8 J-17-16
19. Explicit Resale Price Valuation method pre-supposes that an investor keeps the share only
for few years and eventually sells the shares. The value of the share, therefore, depends
upon which of the following ?
(I) : The stream of dividends expected during investor’s ownership.
(II) : The price expected to be realized whenever investor sells the share.
Codes :
(1) (I) is true, but (II) is false.
(2) (I) is false, but (II) is true.
(3) Both (I) and (II) are true.
(4) Both (I) and (II) are false.

20. It is an act of acquiring effective control by one company over assets or management of
another company without any combination of companies ?
(1) Consolidation (2) Acquisition
(3) Merger (4) None of the above

21. Out of the following, identify the key constituents for performance marketing of Holistic
marketing dimensions :
(a) Customers
(b) Brand and Customer equity
(c) Employees
(d) Ethics
(e) Environment
(f) Sales revenue
(g) Financial community
Codes :
(1) (a), (b), (c) and (d) (2) (b), (d), (e) and (f)
(3) (c), (e), (f) and (g) (4) (a), (c), (f) and (g)

22. Which one of the following is a potential drawback of multibranding ?

(1) The company’s resources may be spread over too many brands.
(2) Consumers may become confused about the image of the main brand.
(3) An over-extended brand name might lose its specific meaning for consumers.
(4) Different product features can appeal to consumers with different buying motives.

23. When a firm improves the quality and increases the price of a product in relation to a
competitor making a price reduction, the firm is ___________.
(1) moving its brand into a higher price-value position
(2) changing its target market
(3) moving its brand into a less competitive position
(4) adversely positioning its product

24. Which one of the following explains “the knowledge and courtesy of employees and their
ability to convey trust and confidence” ?
(1) Empathy (2) Responsiveness
(3) Reliability (4) Assurance

Paper-II 10 J-17-16
25. Match the items of List – I with the items of List – II :
List – I List – II
a. Rich-media i. Online ads that appear between screen changes on a
ads website, especially while a new screen is loading.
b. Pop-ups ii. Display ads that use eye-catching techniques such as
float, fly, and snapback.
c. Interstitials iii. Ads that users can block through the use of applications
developed by web browser providers.
Codes :
a b c
(1) i ii iii
(2) ii i iii
(3) ii iii i
(4) iii i ii
26. Statement – I : Operation research is the application of scientific methods to the study
of alternatives in a problem situation with a view to providing
qualitative basis for arriving at an optimum solution in terms of goal
sought.
Statement – II : Operation research is a quantitative commonsense embracing
observation, experiment and reasoning.
Codes :
(1) (I) is correct but (II) is incorrect.
(2) Both (I) and (II) are correct.
(3) Both (I) and (II) are incorrect.
(4) (II) is correct but (I) is incorrect.
27. Match the items of List – I with List – II :
List – I List – II
a. PERT i. Strategies
b. CPM ii. Events
c. Game theory iii. Network
Codes :
a b c
(1) i ii iii
(2) ii iii i
(3) iii ii i
(4) iii i ii
–
28. Statement – I : X-chart, np-chart and R-chart are the techniques used for product
control under Statistical Quality Control.
Statement – II : Operating characteristic curve helps determine whether a particular
acceptance sampling plan meets both the product’s and the consumer’s
risk requirements.
(1) Both the statements are correct.
(2) Both the statements are incorrect.
(3) Statement – I is correct while Statement – II is incorrect.
(4) Statement – I is incorrect while Statement – II correct.
Paper-II 12 J-17-16
29. Statement – I : When there are a large number of decision variables (more than three)
and constraints, iterative mathematical procedures like simplex
method can be used for product-mix decisions.
Statement – II : Monte Carlo is an approach for simulating the probability distribution
by associating and then selecting random numbers.
(1) Both the statements are correct.
(2) Both the statements are incorrect.
(3) Statement – I is correct while Statement – II is incorrect.
(4) Statement – I is incorrect while Statement – II is correct.
30. In the context of work study, an element is rated as 120% and the actual readings (in
minutes) are as under :
0.05, 0.06, 0.05, 0.05, 0.05
0.06, 0.06, 0.05, 0.06, 0.06
What is the normal time for the element ?
(1) 0.055 minutes (2) 0.060 minutes
(3) 0.066 minutes (4) 0.052 minutes
31. Which of the following sentences are true ?
(i) The classical approach to probability theory requires that the total number of
possible outcomes be known or calculated and that each of the outcomes be equally
likely.
(ii) A marginal probability is also known as unconditional probability.

P(ABC) = P(A) u P(B/A) u P(C/AB)

(iii) For three independent events, the joint probability of the three events,

(iv) Two events are mutually exclusive, exhaustive and equally likely, the probability of
either event A or B or both occurring P(A or B) = P(A) + P(B)
Codes :
(1) (i), (ii), (iii) and (iv) are true.
(2) (iii) and (iv) are true.
(3) (i), (ii) and (iv) are true.
(4) (i) and (iii) are true.
32. Match the items of List – I with the items of List – II and indicate the code of correct
matching in connection with probability distributions :

List – I List – II
(Mean and standard (Probability distributions)
deviations)
a. np, npq i. Normal distribution
b. O O ii. Binomial distribution
c. 0, 1 iii. Poisson distribution
Codes :
a b c
(1) i ii iii
(2) iii i ii
(3) iii ii i
(4) i iii ii
Paper-II 14 J-17-16
33. A researcher wants to test the significance of the differences of the average performance
of more than two sample groups drawn from a normally distributed population, which one
of the following hypothesis-testing tests is appropriate ?
(1) Chi-square test (2) F-test
(3) z-test (4) t-test

34. Match the items of List – I with the items of List – II and indicate the code of their correct
matching with regard to correlation and regression analysis :
List – I List – II
Vy
Jxy
a. i. Covariance between X and Y
Vx

6(X – X) (Y – Y)
b. – – ii. Standard error of coefficient of
n ˜ Vx ˜ Vy correlation

6(X – X) (Y – Y)
c. – – iii. Regression coefficient of Y on
n X variable.

d. 1 – J2 iv. Karl Pearson’s coefficient of

n correlation
Codes
a b c d
(1) i ii iii iv
(2) ii i iv iii
(3) iii ii iv i
(4) iii iv i ii

35. Match the items of List – I with List – II :

List – I List – II
a. Stock files that are placed in warehouse as a record i. Daily report
b. Process of managing goods in most sensible way ii. Intranet
c. Management information system iii. Master file
d. Log-in allowed to only internal people iv. Stock control
Codes :
a b c d
(1) iii iv i ii
(2) iv iii ii i
(3) iii i iv ii
(4) i ii iii iv
Paper-II 16 J-17-16
36. The highly competitive industries, particularly in the early stage of product life cycle,
follow which one of the following strategies ?
(1) Functional area support strategy (2) Expansion strategy
(3) Diversification strategy (4) Downsizing strategy

37. When highly interrelated variables exist or when it is necessary to choose from several
plausible alternatives, which one of the following should the strategist integrate in
decision making ?
(1) Analysis of facts (2) Intuition
(3) Competitor’s strategy (4) Global perspective

38. Assertion (A) : In an industrial structure, the acquisition of an existing firm in the
industry might be a better move than starting-up a new venture.
Reasoning (R) : There is evidence that internal development might be preferable to
acquisition because of differences between culture and shared valued.
Codes :
(1) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(2) Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(3) (A) is correct, but (R) is not correct.
(4) (R) is correct, but (A) is not correct.
39. Consider the following statements with reference to Porter’s five forces model of
competitive analysis :
(a) As rivalry among competing firm intensifies, generally industry profits decline or in
few cases, industry becomes inherently unattractive.
(b) Whenever new firms are allowed to enter a particular industry, the intensity of
competitiveness among firms becomes haphazard.
(c) Generally competitive pressures arising from the substitute products decrease as the
relative price of substitute products decline.
(d) Bargaining power of suppliers affects the intensity of competition.
Codes :
(1) Statements (a) and (b) are false, others are true.
(2) Statements (a) and (d) are true, others are false.
(3) Statements (b), (c) and (d) are true, but (a) is false.
(4) All the statements are true.
40. Match the items given in List – I with the items of List – II :
List – I List – II
a. Vision i. General statements of the company’s intent.
b. Mission ii. Desired future position of the company
c. Goals iii. Operationalizing of mission
d. Objectives iv. Vivid idealised description of a desired outcome
Codes :
a b c d
(1) iv i ii iii
(2) i ii iii iv
(3) ii iii i iv
(4) iii iv ii i
Paper-II 18 J-17-16
41. Statement – I : VED analysis is meant for project maximization.
Statement – II : Network analysis is independent of planning process.
Codes :
(1) (I) is correct but (II) is incorrect.
(2) (II) is correct but (I) is incorrect.
(3) Both (I) and (II) are correct.
(4) Both (I) and (II) are incorrect.

42. Match the items of List – I with List – II :

List – I List – II
a. A promotion assistance for i. SRUTI
development of Khadi
b. A scheme of fund for registration of ii. ISEC
traditional industries
c. Interest subsidy eligibility for all iii. MDA
institutions registered under KVIC
Codes :
a b c
(1) iii i ii
(2) iii ii i
(3) i iii ii
(4) i ii iii

43. Under the Sick Industrial Companies (Special Provisions) Act, 1985, the public sector
companies were covered from which year ?
(1) February, 1994 (2) January, 1990
(3) December, 1991 (4) None of the above

44. Industrial Reconstruction Bank of India (IRBI) which was reconstituted into a full fledged
all purpose developmental financial institution with effect from March 27, 1997 was
renamed as _______.
(1) Small Industrial Development Bank of India
(2) Industrial Investment Bank of India Ltd.
(3) Industrial Finance Corporation of India
(4) Board of Industrial and Financial Reconstruction

45. Non-availability of required project planning capability is due to _______.

(1) Poor general management
(2) Poor professional management
(3) Poor entrepreneurial management
(4) Poor marketing management
Paper-II 20 J-17-16
46. Statement – (I) : Ethical decision making is a very tough prospect in this ‘dog-eat-dog’
world. All will have to fall in and play fair.
Statement – (II) : In this age of liberalisation and globalisation, the old dirty games and
ethical conduct will no longer be accepted.
Codes :
(1) Statement (I) and (II) both are incorrect.
(2) Statement (I) and (II) both are correct.
(3) Statement (I) correct, (II) incorrect.
(4) Statement (I) incorrect, (II) correct.

47. The three basic principles of business ethics are shown by which one of the following ?
(1) Utilitarianism, social commitment and reputation
(2) Utilitarianism, societal reputation and justice
(3) Utilitarianism, principle of right and principle of justice.
(4) Principle of right, principle of justice and social commitment

48. Gandhian concept of social responsibility is denoted by which one of the following ?
(1) Social commitment concept
(2) Trusteeship concept
(3) Sustainable development concept
(4) Welfare concept

49. CII Committee on Corporate Governance with SEBI as the Custodian of investors
constituted on 7th May 1999 is known by which one of the following ?
(1) Dr. J.J. Irani Committee
(2) Kumar Mangalam Birla Committee
(3) Narayan Murti Committee
(4) Working group on the Companies Act

50. Which one of the following denotes good choices of ethical decision making ?
(1) (i) take choice seriously
(ii) good decisions are both ethical and effective
(iii) discernment and discipline
(2) (i) ethical actions
(ii) discernment and discipline
(iii) stage of social welfare
(3) (i) take choice seriously
(ii) improve ethical decision
(iii) discernment and discipline
(4) (i) good decision are both ethical and effective
(ii) take choice seriously
(iii) ethical actions
_____________
Paper-II 22 J-17-16
 MANAGEMENT
PAPER – II

Note : This paper contains fifty (50) objective type questions of two (2) marks each. All
questions are compulsory.

1. The following is the demand schedule :

Price Quantity demanded
( ) (Units)
10 80
8 100
5 160
What will be the value of arc elasticity of demand between prices 10 and 5 ?
(1) 0.50 (2) 0.20
(3) 1.00 (4) 1.35

2. The following is the total cost function of a firm :

TC = 10 + 6Q – 0.9 Q2 + 0.05 Q3
What will be the critical value of output when AC is the minimum ?
(1) 9 (2) 10
(3) 6 (4) None of the above

3. Match the items of List – I with the items of List – II and select the code of correct
matching :
List – I List – II
(i) Normal profit at the output level where (a) Oligopoly market
MC = MR = AR = AC
(ii) Normal profit at the output level when (b) Perfect competition market
(MC = MR) is less than (AC = AR)
(iii) Price and output levels once determined (c) Monopoly market
tend to remain stable even if there is
considerable change in cost of production
Codes :
(a) (b) (c)
(1) (i) (ii) (iii)
(2) (iii) (ii) (i)
(3) (ii) (iii) (i)
(4) (iii) (i) (ii)
Paper-II 2 J-17-16
4. Match the items of List – I with the items of List – II and indicate the code of their correct
matching with regard to methods of measuring national income :
List – I List – II
(i) When the entire national economy is considered (a) Expenditure method
as an aggregate of producing units
(ii) When national economy is considered as (b) Net product method
combination of factor owners and users
(iii) When national economy is viewed as a (c) Factor income method
collection of spending units
Codes :
(a) (b) (c)
(1) (i) (ii) (iii)
(2) (iii) (i) (ii)
(3) (ii) (iii) (i)
(4) (iii) (ii) (i)

5. Statement – I : Business environment for a firm is a multi-layered structure.

Statement – II : Types of business environment risk cover only natural risk and legal risk.
(1) Both the Statements I and II are correct.
(2) Both the Statements I and II are incorrect.
(3) Statement I is correct while Statement II is incorrect.
(4) Statement I is incorrect while Statement II is correct.

6. Match the items of List – I with the items of List – II and find the correct combination :
List – I List – II
(Perception Process) (Elements)
(a) Stimuli (i) Grouping
(b) Organizing (ii) Stereotyping
(c) Interpreting (iii) Internal & External
(d) Reacting (iv) Impression formation
Codes :
(a) (b) (c) (d)
(1) (iv) (ii) (i) (iii)
(2) (iii) (i) (ii) (iv)
(3) (ii) (iii) (iv) (i)
(4) (iii) (iv) (ii) (i)

7. Which of the following is not a theory of organization ?

(1) Balance theory by Herbert Simon
(2) Fusion process theory by Wight Bakke
(3) Role theory and group theory by Rensis Likert
(4) Kurt Lewin’s field theory
Paper-II 4 J-17-16
8. The three different types of interdependence among groups was primarily suggested by
whom ?
(1) Likert (2) Kurt Lewin
(3) Thompson (4) Gordon Lippit

9. As per the Vroom’s theory of motivation, what is the term coined for the extent of
attraction of a result/outcome to the recipient of the award ?
(1) Expectancy (2) Instrumentality
(3) Valence (4) Force

10. Which of the following is the concept of organizational development which stresses
effective use of the existing methods used by employees ?
(1) Process consultation (2) Sensitivity training
(3) Job enrichment (4) Team building

11. Which of the following is included in a functional job analysis ?

(1) the mathematical ability required to perform the task
(2) the extent to which reasoning and judgment are required to perform the task
(3) the extent to which specific instructions are necessary to perform the task
(4) all of the above

12. Match the items of List – I with the items of List – II.
List – I List – II
(a) Job instruction (i) A systematic method for teaching job skills involving
training presenting questions or facts, allowing the person to
respond, and giving the learner immediate feedback on
the accuracy of his answers.
(b) Vestibule (ii) Listing of each job’s basic tasks, along with key points in
training order to provide step-by-step training.
(c) Programmed (iii) Training employees on special off the job equipment, as
learning in air-plane pilot training, whereby training costs and
hazards can be reduced.
Codes :
(a) (b) (c)
(1) (i) (ii) (iii)
(2) (i) (iii) (ii)
(3) (ii) (iii) (i)
(4) (iii) (ii) (i)
Paper-II 6 J-17-16
13. In which one of the following performance appraisal method predetermind percentages of
ratees are placed in performance categories ?
(1) Forced distribution method (2) Paired comparison method
(3) Alternation ranking method (4) MBO

14. Out of the following, choose the non-traditional pay focus combination ?
(a) Encourage involvement
(b) Create order
(c) Highlight organizational needs
(d) Reward positive results
(e) Reinforce the hierarchy
(f) Direct behaviour
Codes :
(1) (a), (b), (c) and (d) (2) (a), (b), (d) and (e)
(3) (a), (c) and (d) (4) (b), (e) and (f)

15. Which of the following is a function of labour relations ?

(1) To provide constructive criticism of the management
(2) To increase the productivity of the workers through reducing the labour turnover
and frequent absenteeism
(3) To secure and improve living standards and economic status of workers
(4) All of the above

16. Match the items given in List – I with the items of List – II.
List – I List – II
(a) Lien (i) The borrower is provided with working capital finance against
the security of movable property, generally inventories.
(b) Mortgage (ii) It is the transfer of a legal or equitable interest in a specific
immovable property for the payment of a debt.
(c) Hypothecation (iii) It means right of the lender to retain property belonging to
the borrower until he repays credit.
(d) Pledge (iv) The borrower is required to transfer the physical possession
of the property offered as a security to obtain credit.
Codes :
(a) (b) (c) (d)
(1) (iv) (iii) (ii) (i)
(2) (iii) (ii) (i) (iv)
(3) (iv) (ii) (i) (iii)
(4) (i) (ii) (iii) (iv)
Paper-II 8 J-17-16
17. Which one of the following values refers to the net difference between the realizable value
of all assets and the sum total of external liabilities ?
(1) Capitalized value (2) Going concern value
(3) Book value (4) Liquidating value

18. The coefficient of variation is a useful measure of risk when a financial manager is
comparing the projects which have ?
(1) Same standard deviations but different expected values.
(2) Different standard deviations but same expected values.
(3) Different standard deviations and different expected values.
(4) All of the above

19. A plastic manufacturing company issues 10% irredeemable preference shares. The face
value is 100 , but the issue price is 95. The cost of preference share is
(1) 9.5% (2) 10%
(3) 10.53% (4) 19.5%

20. A project requires an outley of 52,000U It is expected to generate cash inflow as

follows :
Year 1 – 12,000
Year 2 – 15,000
Year 3 – 16,000
Year 4 – 18,000
Year 5 – 9,000
The pay-back period of the project is :
(1) 4 years (2) 3 years and 5 months
(3) 3 years and 6 months (4) 5 years

21. Out of the following, identify the key constituents for relationship marketing of holistic
marketing dimensions :
(a) Senior management
(b) Environment
(c) Customers
(d) Employees
(e) Partners
(f) Financial community
(g) Channels
Codes :
(1) (a), (b), (c) and (e) (2) (c), (d), (e) and (f)
(3) (d), (e), (f) and (g) (4) (a), (c), (d) and (f)
Paper-II 10 J-17-16
22. Six levels of the product hierarchy are given below. Select the code of their correct
sequence.
(a) Product class
(b) Need family
(c) Item
(d) Product family
(e) Product type
(f) Product line
Codes :
(1) (d), (b), (e), (a), (c) and (f) (2) (a), (d), (b), (c), (f) and (e)
(3) (b), (d), (a), (f), (e) and (c) (4) (b), (d), (f), (a), (e) and (c)

23. Match the items of List – I with the items of List – II and choose the correct codes :
List – I List – II
(a) Point-of- (i) Attribute or benefit associations that are not necessarily unique
purchase to the brand but may in fact be shared with other brands.
(b) Point- of (ii) The location where a purchase is made, typically thought of in
parity terms of a retail setting.
(c) Points-of- (iii) Attributes or benefits that consumers strongly associate with a
difference brand, positively evaluate, and believe they could not find to
the same extent with a competitive brand.
Codes :
(a) (b) (c)
(1) (ii) (iii) (i)
(2) (ii) (i) (iii)
(3) (i) (ii) (iii)
(4) (iii) (ii) (i)

24. Which one of the following is “the ability to perform the promised service dependably and
accurately determinant of service quality” ?
(1) Assurance (2) Empathy
(3) Reliability (4) Responsiveness

25. When companies work with each other online and offline to promote each other, they are
creating _____.
(1) Contextual advertisements (2) Alliance and affiliate programmes
(3) Content sponsorships (4) Search related advertisements

Paper-II 12 J-17-16
26. Assertion (A) : Operation research is the application of the method of science to decision
making in management of men, money, machines and materials.
Reason (R) : Operations research is the prediction and comparison of value, effectiveness
and cost of a set of proposed alternative courses of action involving man, machine
and system”.
Codes :
(1) Both (A) and (R) are correct.
(2) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(3) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(4) (A) is correct, but (R) is incorrect.

27. Identify the correct statements from the following with regard to operation research :
(i) It is based on quantitative techniques and mathematical models.
(ii) Operation research is another name of optimization.
(iii) It looks at the problem with a holistic approach.
Codes :
(1) (i) and (ii) are correct statements (2) (ii) and (iii) are correct statements
(3) (i) and (iii) are correct statements (4) (i), (ii) and (iii) are correct statements

28. Which of the following are true statements regarding statistical quality control ?
(i) the measure of the performance of an acceptance sampling plan is the OC curve.
(ii) Statistical process control is one of the tools of TQM.
(iii) Multiple sampling permits more than two samples to reach a decision regarding the
quality of the lot.
(iv) The X – chart and R – chart are constructed to resolve assignable variations in a
process.
Code :
(1) (i), (ii), (iii) and (iv) (2) (ii), (iii) and (iv)
(3) (i), (iii) and (iv) (4) (i) and (iv)

29. Statement – I : The moving averages method and the exponential smoothing method of
demand forecasting for operations are related.
Statement – II : Economic order quantity (EOQ) is based on the trade off between the
carrying and order costs to decide optimal order quantity.
(1) Both the statements are correct.
(2) Both the statements are incorrect.
(3) Statement I is correct while statement II is incorrect.
(4) Statement I is incorrect while statement II is correct.

30. If the total allowances (personal time, fatigue and unavoidable minor delay) are agreed
upon as 16% and if the normal time of an element is 0.210 minutes, what is the standard
time for the good industirla engineer ?
(1) 0.370 minutes (2) 0.336 minutes
(3) 0.250 minutes (4) 0.150 minutes
Paper-II 14 J-17-16
31. Match the items of List-I with the items of List-II and indicate the code of correct
matching with regard to fundamentals of probability.
List – I List – II
(a) P(A) + P(B) (i) P(A or B) when events are not mutually exclusive
(b) P(A) + P(B) – P(AB) (ii) P(AB) when events are independent
(c) P(A) × P(B) (iii) P(AB) when one event is independent while the other
is dependent
(d) P(A) × P(B/A) (iv) P(A or B) when events are mutually exclusive,
exhaustive and equally likely.
Codes :
(a) (b) (c) (d)
(1) (i) (ii) (iii) (iv)
(2) (iv) (iii) (i) (ii)
(3) (ii) (iii) (iv) (i)
(4) (iv) (ii) (iii) (i)

32. When size of a sample is 25, standard deviaiton of the population is not known and a
researcher wants to test the significance of the difference between two sample groups
performance, which one of the following hypothesis testing tests is appropriate ?
(1) Chi-square test (2) F-test
(3) Z-test (4) t-test

33. The standard deviation of the binomial distribution is

(1) np (2) npq
(3) np (4) npq

34. The two regression lines obtained in a correlation analysis of 60 observations are :
5x = 6y + 24 (x on y)
1000y = 768x – 3708 (y on x)
What is the value of coefficient of correlation between variables x and y ?
(1) 0.92 (2) 0.96
(3) 0.90 (4) 0.46

35. Use of computer mode for a special purpose is classified as :

(1) Computer interface (2) Computer application
(3) Control application (4) Peripheral application

36. The strategy making hierarchy consisting of corporate strategy – line of business strategy
– functional area support strategy – operational level strategy was propounded by whom
of the following ?
(1) George Albert Smith (2) C. Roland Christensen
(3) Edmund P. Learned (4) Thompson and Strickland

37. The enduring statements of purpose that distinguish one business from other similar firms
are commonly called as _____.
(1) Vision statement (2) Objective statement
(3) Strategy (4) Mission statement
Paper-II 16 J-17-16
38. Network techniques like PERT and CPM are the examples of _____.
(1) Strategy (2) Programmes
(3) Policies (4) Objectives

39. Match the items given in List – I with the items of List – II :
List – I List – II
(a) Competitive advantage (i) Creating an effective organizational
structure
(b) Strategy formulation (ii) Reviewing current strategies
(c) Strategy implementation (iii) Comparing to rival firms
(d) Strategy evaluation (iv) Determining internal strengths and
weaknesses
Codes :
(a) (b) (c) (d)
(1) (ii) (iv) (i) (iii)
(2) (i) (iii) (ii) (iv)
(3) (iii) (iv) (i) (ii)
(4) (iv) (ii) (i) (iii)

40. The ‘Industrial Organization’ (I/O) approach to competitive advantage by Porter

advocates which of the following ?
(1) Industry in which a firm chooses to compete has a weaker influence on firm’s
performance.
(2) External factors of industry are more important than internal factors in a firm.
(3) The internal functional decisions managers make in marketing, finance and like
have a stronger influence on firm’s performance than industry in which a firm
choose to compete.
(4) Analyzing external forces and industry variables cannot act as a basis of getting and
keeping competitive advantage.

41. Match the items of List – I with List – II.

List – I List – II
(a) Forward integration (i) Diversify in other areas
(b) Backward integration (ii) Current product serve as inputs
(c) Conglomeration (iii) Combination of two or more businesses
(d) Merger (iv) Production of raw material
Codes :
(a) (b) (c) (d)
(1) (iv) (iii) (i) (ii)
(2) (i) (ii) (iv) (iii)
(3) (iv) (ii) (i) (iii)
(4) (ii) (iv) (i) (iii)

Paper-II 18 J-17-16
42. Assertion (A) : The rural people who work in the rural handicraft industry are mainly
women and those from the weaker sections of the society.
Reason (R) : The main objective of Khadi and village industries commission (KVIC) is to
promote women and weaker section of the society.
Codes :
(1) (A) is correct but (R) is not correct.
(2) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(3) Both (A) and (R) are correct but (R) is not the correct explanation of (A).
(4) Both (A) and (R) are incorrect.

43. The major cause of industrial sickness, as identified by ‘Tiwari Committee’ in it’s report
submitted in 1984, was _____.
(1) Deficiencies in management (2) Infrastructural factors
(3) Labour trouble (4) Technical factors

44. The income tax act which was amended in 1977 by addition of section 72 A, provided
grant of tax benefit to healthy units for which of the following reasons ?
(1) Taking over of other healthy units for making economy stronger.
(2) Keeping themselves healthy during initial stages of their establishment.
(3) Providing loans and other financial assistance to sick units in industry.
(4) Taking over of sick units by amalgamation with a view of reviving them.

45. Match the items of List – I with those of List – II.

List – I
(Entrepreneurship Theory)
(a) Social change
(b) Status withdrawal
theory
(c) Achievement theory
(d) Innovation theory
Codes :
(a) (b) (c) (d)
(1) (iii) (i) (ii) (iv)
(2) (iii) (iv) (ii) (i)
(3) (i) (ii) (iii) (iv)
(4) (iv) (ii) (iii) (i)
List – II
(Attributes)
(i) The introduction of a new product which
consumers are not yet familiar.
(ii) Individuals with high need achievement will not
be motivated by monetary incentives but that
monetary rewards will constitute a symbol of
achievement for them.
(iii) Driving entrepreneurial energies are generated by
the adoption of exogenously supplied religious
beliefs.
(iv) A class which lost its previous prestige or a
minority group tends to show aggressive
entrepreneurial drive.

Paper-II 20 J-17-16
46. Statement – I : Corporate values seen to ensue a consistency of conduct across the entire
organisation.
Statement – II : Business ethics can provide the general guidelines within which
management can operate.
Codes :
(1) I and II both are incorrect (2) I and II both are correct
(3) I is correct II is incorrect (4) I is incorrect II is correct

47. Which one of the following denotes six characteristics of ethical code of conduct for
manager ?
(1) Integrity, Impartiality, Responsiveness to public interest, Economic, Honesty,
Transparency.
(2) Integrity, Impartiality, Responsiveness to public interest, Accountability, Honesty,
Transperancy.
(3) Integrity, Impartiality, Responsiveness to public interest, Civil society,
Accountability, Transparency.
(4) Integrity, Impartiality, Responsiveness to public interest, Accountability, Fairness,
Transparency.

48. Three levels of corporate social responsibility of business are denoted by which one of the
following ?
(1) natural environment, market economy, voluntary action
(2) ethical values, work culture, participation
(3) market force, mandated action, voluntary actions
(4) healthy competition, good corporate business, voluntary action

49. Who has defined following concept of corporate governance ?

“Corporate governance is defined as holding the balance between economic and social
goals and between individual common goals. The governance framework is there to
encourage the efficient use of resources and equally to require accountability for the
stewardship of those resources”.
(1) K. Keasay (2) Cadbury committee
(3) J.J. Irani Committee (4) Ronald R. Sims

50. Which among the following is not associated with social responsibility of business
enterprise ?
(1) Caux Round Table
(2) Transparency International
(3) Global reporting initiative
(4) Organization for economic cooperation and development
___________

Paper-II 22 J-17-16
 MANAGEMENT
Paper – II
Note : This paper contains fifty (50) objective type questions of two (2) marks each. All
questions are compulsory.

1. Indicate the correct code for the scope of managerial economics from the following :
a. Demand Analysis
b. Production and Cost Analysis
c. Pricing and Investment Decisions
d. Factor pricing Decisions
e. Economic Environmental Analysis
Codes :
(1) a, b, c, d (2) b, c, d, e
(3) a, b, c, e (4) a, c, d, e

2. Price elasticity of demand for a product is measured by

'Q 'P 'Q 'P
(1) Ed = Q u P (2) Ed = Q y P
'P Q 'P 'Q
u Ed = P y Q
'Q P
(3) Ed = (4)

(Where Ed = elasticity of demand, Q = Quantity, P = Price and ' = represents change)

3. Which one of the following will be the appropriate pricing strategy for a new product
expecting an expanding market ?
(1) Monopoly pricing (2) Skimming pricing
(3) Penetrating pricing (4) Differential pricing

4. Match the items of the List – I with those of the List – II and suggest the correct code from
the following :
List – I List – II
i. Loss Leader a. Locational price differentials
ii. Unchanged Pricing b. Products with high initial demands
iii. Basing Point Pricing c. Product line pricing
iv. Skimming Pricing d. Oligopoly pricing
Codes :
i ii iii iv
(1) a b c d
(2) c d a b
(3) d b a c
(4) c a b d
Paper-II 2 JA-017-17
5. In case the firm makes varying investments on the different investment projects, the
appropriate project evaluation technique would be, which one of the following ?
(1) Average annual rate of return technique
(2) Pay back period technique
(3) Net present value technique
(4) Profitability index technique

6. According to Henry Fayol, which one of the following combinations of qualities are
required in a manager ?
(1) Physical, mental, experience, educational and conceptual
(2) Technical, human, conceptual, mental and moral
(3) Physical, mental, moral, educational, technical and experience
(4) Mental, moral, conceptual, educational, technical and experience

7. Neo-classical organisation theory emphasises on which one of the following ?

(1) Flat structure of organisation (2) Tall structure of organisation
(3) Coordination by hierarchy (4) Unity of command

8. According to Graicuna’s formula of span of management, if a superior has three

subordinates, what number of cross-relationships would be ?
(1) three (2) six
(3) nine (4) eighteen

9. In Reddin’s ‘Tridimensional Grid’, which one of the following is a less effective style of
leadership ?
(1) Developer (2) Missionary
(3) Executive (4) Bureaucrat

10. Assertion (A) : Attribution theory is based on relationship between personal perception
and interpersonal behaviour.
Reasoning (R): Since most ‘whys’ are not directly observable, people must depend
upon cognitions, particularly perception.
Codes :
(1) (A) is right but (R) is wrong.
(2) (A) is wrong but (R) is right.
(3) Both (A) and (R) are right but (R) does not explain (A).
(4) Both (A) and (R) are right and (R) explains (A).
Paper-II 4 JA-017-17
11. Arrange the following steps of training and development process in the right sequence :
a. Need analysis
b. Validation
c. Evaluation
d. Implement the programme
e. Instructional design
(1) a, e, d, c, b (2) a, e, c, b, d
(3) a, e, b, d, c (4) a, b, e, c, d
12. Which one of the following is related to ‘Standard of Personnel’ ?
(1) Job Specification (2) Job Description
(3) Job Design (4) Job Evaluation

13. If an employee desires to pay more than the minimum required contribution under the
Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, then
(1) employer shall also pay an amount equal to the total contribution of employee.
(2) employer shall pay only half of the additional contribution of employee.
(3) employer is under no obligation to pay the additional contribution.
(4) the act is silent regarding this matter.

14. Under the Employees’ State Insurance Act, 1948, sickness benefit can be paid for which
one of the following maximum periods ?
(1) 45 days in two consecutive benefit periods.
(2) 66 days in two consecutive benefit periods.
(3) 91 days in two consecutive benefit periods.
(4) 180 days in two consecutive benefit periods.

15. Which one of the following laws is enacted by the Central Government and enforced by
the State Governments ?
(1) The Employees State Insurance Act, 1948
(2) The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952
(3) Factories Act, 1948
(4) The Mines Act, 1952

16. The cost of external equity can be most appropriately computed as per the
(1) Earnings price ratio (2) Dividend price ratio
(3) Dividend price plus growth ratio (4) Capital assets pricing model
Paper-II 6 JA-017-17
17. For the following items in List – I and List – II, indicate the correct code after matching them :
List – I List – II
i. Net income approach for capital a. Modigliani, M. and Miller M.H.
structure
ii. Net operating income approach for b. Robert Bruner
capital structure
iii. Irrelevance of capital structure for the c. Ezra Soloman
value of the firm.
iv. FRICT analysis for capital structure d. David Durand
Codes :
i ii iii iv
(1) a b c d
(2) d c a b
(3) d c b a
(4) b a d c

18. Which one of the following is not a feature of ‘Preference Shares’ ?

(1) Prior claim on income / assets of the company over equity shareholders.
(2) Redeemability after certain period.
(3) Possessing voting rights on important issues of the company.
(4) May possess the right to participate in surplus profits of the company.

19. The basic consideration for dividend pay-out for a company excludes which one of the
following ?
(1) Investment opportunities for the company
(2) Expectations of the shareholders of the company
(3) Legal and financial restrictions for the company
(4) Stability of the dividend considerations

20. For the following two statements of Assertion (A) and Reasoning (R) indicate the correct code :
Assertion (A) : Shareholders Wealth Maximisation (SWM) and not the profit
maximisation is an appropriate and operationally feasible financial
management goal.
Reasoning (R) : There exists a principal-agent relationship between the shareholders and
the management of the company.
Codes :
(1) (A) and (R) both are correct.
(2) (A) is correct but (R) is incorrect.
(3) (A) is incorrect but (R) is correct.
(4) (A) and (R) both are incorrect.
Paper-II 8 JA-017-17
21. Which one of the following components is not the part of broad marketing environment ?
(1) Technological environment
(2) Task environment
(3) Demographic environment
(4) Natural environment

22. The Coco Cola Company markets a wide range of different beverage products including
bottled water, soft-drinks, juices and sports drinks. Each product appeals to a different
segment. This is an example of which type of market offering ?
(1) Differentiated marketing
(2) Target marketing
(3) Undifferentiated marketing
(4) Intensified marketing

23. Temporarily reducing prices to increase short-run sales is an example of which one of the
following ?
(1) Segmented pricing (2) Promotional pricing
(3) Dynamic pricing (4) Geographical pricing
24. Match the items of List – I with the items of List – II and indicate the code of correct
matching :
List – I List – II
a. Brand elements i. The marketer’s vision of what the brand must
be and do for consumers.
b. Brand line ii. All products, original as well as line and
category extensions, sold under a particular
brand name.
c. Brand personality iii. Those trademarkable devices that serve to
identify and differentiate the brand.
d. Brand promise iv. The specific mix of human traits that may be
attributed to a particular brand.
Codes :
a b c d
(1) iii ii iv i
(2) i ii iii iv
(3) iii i iv ii
(4) iv iii ii i

Paper-II 10 JA-017-17
25. Statement – I : In developing advertising programme marketing managers must always
start by identifying the target market and buyer motives.
Statement – II : A company may run multiple ad campaigns at the same time, each
emphasizing different aspects of its brand and service.
(1) Only Statement – I is correct.
(2) Only Statement – II is correct.
(3) Both Statements – I and II are correct.
(4) Both Statements – I and II are incorrect.

26. Match the items of List – I with the items of List – II and select the code of correct
matching with regard to forecasting models for operations :
List – I List – II
(Model Type (name)) (Description)
a. Delphi technique i. Causal quantitative model
b. Economic modeling ii. Quantitative model (Naive)
c. Exponential Smoothing iii. Qualitative model
Codes :
a b c
(1) i ii iii
(2) iii i ii
(3) iii ii i
(4) ii iii i

27. In which one of the following situations, a product-oriented layout is appropriate ?

(1) A medical clinic
(2) An automated carwash
(3) A work centre for welding, heat treating and painting
(4) A home plumbing repair business.

28. A graphic tool to trace the interaction of several workers with one machine is termed as
(1) Gang process chart (2) Flow process chart
(3) Activity chart (4) Operation chart

29. Which one of the following is a technique of statistical quality control used for product
control ?
(1) R-chart (2) Sampling plan
(3) np-chart (4) control-chart
Paper-II 12 JA-017-17
 (criterion of realism) = [a u (maximum in column)] + [(1 – a) u (minimum in column)] is
30. The decision-criterion in which a decision-maker selects an alternative that maximizes H

called
(1) Laplace criterion (2) Hurwicz criterion
(3) Wald’s criterion (4) Bayesian criterion

31. Which one of the following expressions relates to an event which represents the
occurrence of either A or B or both ?
(1) A ‰ B (2) A ˆ B

(3) A ˆ B (4) (A ˆ B) ‰ (A ˆ B)
– – – –

32. A Bernoulli process has all but which one of the following properties ?
(1) Each trial has two possible outcomes.
(2) The probability of a success on any trial remains fixed over time.
(3) The probability of success on any trial is equal to the probability of failure.
(4) Trials are statistically independent.

33. Statement – I : The product of coefficient of correlation, standard deviation of variable

‘X’ and Standard deviation of variable ‘Y’ gives the measure of
covariance between X and Y variables.
Statement – II : The product of coefficient of correlation between X and Y variables and
the ratio between standard deviation of X variable to standard deviation
of Y variable measures the slope of the regression line of X on Y
variable.
Codes :
(1) Both the Statements are correct.
(2) Both the Statements are incorrect.
(3) Statement – I is correct while Statement – II is incorrect.
(4) Statement – I is incorrect while Statement – II is correct.

34. Statement – I : Both the probable error and standard error of the coefficient of
correlation are different.
Statement – II : When a sampling distribution of mean is prepared by taking small sized
samples from a normally distributed population, the distribution takes
the shape of normal distribution.
Codes :
(1) Both the Statements are correct.
(2) Both the Statements are incorrect.
(3) Statement – I is correct while Statement – II is incorrect.
(4) Statement – I is incorrect while Statement – II is correct.
Paper-II 14 JA-017-17
35. Which one of the following is not the major characteristics of internet ?
(1) Open (2) Expensive
(3) Global (4) Untrusted

36. Assertion (A) : Private foreign capital lends to flow to the high profit areas rather than
to the priority sectors.
Reasoning (R) : One of the important limitations to utilize the foreign capital is the
absorptive capacity of the recipient country.
Codes :
(1) (A) and (R) both are correct and (R) is the correct explanation of (A).
(2) (A) and (R) both are correct but (R) is not the correct explanation of (A).
(3) (A) is correct whereas (R) is incorrect.
(4) (R) is correct whereas (A) is incorrect.

37. Consider the following statements and identify the correct code of true statements :
(a) When an organization’s survival is threatened and it is not competing effectively,
retrenchment strategies are often needed.
(b) Turnaround strategy is used when an organization is performing well but has not yet
reached a critical stage.
(c) Divestment strategy involves selling the business or setting it up as a separate
corporation.
(d) Liquidation strategy involves closure of business which is no longer profitable.
Codes :
(1) Only (a), (b) and (c) are correct.
(2) Only (b), (c) and (d) are correct.
(3) Only (a), (c) and (d) are correct.
(4) Only (a) and (d) are correct.

38. Statement – I : Most businesses start off as “Question Marks”, in that they enter a high-
growth market in which there is already a market leader.
Statement – II : A “Star” is the market leader in a high-growth market, but it does not
necessarily provide much cash.
(1) Statement – I is correct but Statement – II is incorrect.
(2) Statement – II is correct but Statement – I is incorrect.
(3) Both the Statements are incorrect.
(4) Both the Statements are correct.
Paper-II 16 JA-017-17
39. Match the items of List – I with List – II and identify the code of correct matching :
List – I List – II
a. Consistent actions one time i. A perspective
b. It reflects the decision of the firm to offer ii. A ploy
particular products or services in
particular markets.
c. A manoeuvre intended to outwit iii. A position
competitor
d. A view of what the organization is to iv. A pattern
become
Codes :
a b c d
(1) iv iii i ii
(2) iv i ii iii
(3) iv iii ii i
(4) iii iv ii i

40. Apple computers uses a differentiation competitive strategy that emphasizes innovative
product with creative design. This is an example of
(1) Functional strategy (2) Business strategy
(3) Operating strategy (4) Product strategy

41. Match the items of List – I with the items of List – II and select the code of correcting
matching :
List – I List – II
a. Richard Cantillon i. Entrepreneur must accept the challenge
and should be willing hard to achieve
something
b. Joseph A. Schumpeter ii. Entrepreneurs are all those persons who
are engaged in economic activity.
c. J.K. Golbraith iii. Entrepreneur is a person who introduces
innovation and change.
Codes :
a b c
(1) iii i ii
(2) i iii ii
(3) ii iii i
(4) ii i iii
Paper-II 18 JA-017-17
42. Total Quality Management, job redesigning, new techniques of doing things and
management by consensus are the examples of which one of the following ?
(1) Opportunistic entrepreneurship
(2) Administrative entrepreneurship
(3) Incubative entrepreneurship
(4) Mass entrepreneurship

43. Under technology and quality upgradation support to help manufacturing MSMEs buy
energy efficient technologies for production, what percentage of the actual expenditure is
provided as financial support by the Government of India ?
(1) 75% (2) 60%
(3) 50% (4) 25%

44. Which one of the following is not a personal characteristic of an entrepreneur ?

(1) Innovative (2) Hardworking
(3) Practical (4) Submissive

45. Which one of the following is the most insignificant reason for sickness in SSI sector ?
(1) Power shortage (2) Lack of demand
(3) Management problems (4) Equipment problems

46. Statement – I : Ethical principles tend to be broader than legal principles.

Statement – II : Laws and ethics are closely related.
Codes :
(1) Statement – I is correct but Statement – II is incorrect.
(2) Statement – II is correct but Statement – I is incorrect.
(3) Both the Statements are correct.
(4) Both the Statements are incorrect.

47. Assertion (A) : The state shall endeavour to protect and improve the environment and
to safeguard the forest and wildlife of the country.
Reasoning (R) : The Directive principles of state policy of the Indian Constitution
Command the State to ensure protection and improvement of
environment and to safeguard forest and wildlife.
Codes :
(1) (A) is correct but (R) is not correct.
(2) (R) is correct but (A) is not correct.
(3) Both (A) and (R) are correct and (R) is the right explanation of (A).
(4) Both (A) and (R) are correct but (R) is not the right explanation of (A).
Paper-II 20 JA-017-17
48. Match the items of List – I with List – II and identify the code of correct matching :
List – I List – II
(CSR Models) (Emphasis)
a. Ethical Model i. Corporate responsibilities limited to
private owners.
b. Statist Model ii. Voluntary commitment by companies to
public welfare
c. Liberal Model iii. State ownership and legal requirements
determine corporate responsibilities.
d. Stakeholder Model iv. Companies respond to the need of
customers, communities, etc
Codes :
a b c d
(1) ii iii i iv
(2) ii i iii iv
(3) ii i iv iii
(4) i iii ii iv

49. Which one among the following is not correct about J. J. Irani Committee’s
recommendations on Company Law (2005) :
(1) 2/5th of the board of a listed company should comprise of independent directors.
(2) Introduce the concept of One Person Company (OPC).
(3) Allow corporations to self-regulate their affairs.
(4) Disclose proper and accurate compilation of financial information of a corporation.

50. A business should act ethically for which of the following reasons ?
(a) To prevent harm to the general public
(b) To meet stake-holder expectations
(c) To protect their own employees
(d) To maximize profit of the business
Codes :
(1) (a), (b) and (c) only (2) (b), (c) and (d) only
(3) (a), (c) and (d) only (4) (a) and (d) only
___________

Paper-II 22 JA-017-17
 MANAGEMENT
PAPER - II

Note : This paper contains fifty (50) objective type questions of two (2) marks each. All questions
are compulsory.
1. Managerial economics is concerned with which combination of the following ?
(a) Investment Analysis and Decisions
(b) Production Behaviour and Cost Analysis
(c) Input Reward Analysis and Decisions
(d) Economic Environment Analysis
Code :
(1) (a), (b) and (c) (2) (b), (c) and (d)
(3) (a), (b) and (d) (4) (a), (c) and (d)

2. When P0 and P1 and Q0 and Q1 denote before and after change in the price and quantity
respectively and in both the situations, total outlay remains the same, which of the following
formulae give the similar value of the arc price - elasticity of demand ?

Q 0−Q 1 P0+P1 Q 0−Q 1 P0

(a) × (b) ×
P0−P1 Q 0+Q 1 P0−P1 Q 1

Q 0−Q 1 P0 Q 0−Q 1 P1 Q 0−Q 1 P1

(c) × (d) × (e) ×
P0−P1 Q 0 P0−P1 Q 1 P0−P1 Q 0

Code :
(1) (b), (c) and (e)
(2) (a), (b) and (e)
(3) (a), (c) and (e)
(4) (b), (c) and (d)

3. In case the producer’s equilibrium shifts to a higher isoquant due to decrease in price of an
input, the curve combining the successive equilibrium positions is known as :
(1) Product Possibility Curve (2) Price Factor Curve
(3) Expansion Path (4) Product Line

N-01717 !N-01717-PAPER-II! 2 Paper-II

4. Which one of the following statements is not correct ?
(1) Marginal cost declines at a faster rate as compared to the average cost.
(2) Marginal cost rises at a faster rate as compared to the average cost.
(3) Marginal cost equals average cost where average cost is minimum.
(4) Average cost equals marginal cost where marginal cost is minimum.

5. Cost - Plus pricing is not suitable for :

(1) Product Tailoring (2) Profit Maximising
(3) Monopsony Pricing (4) Public Utility Pricing

6. Match the following and select the correct code of matching :

List - I List - II
(a) F.W. Taylor (i) Fair day’s pay for fair day’s work
(b) Henry L. Gantt (ii) Motion study
(c) Frank and Lillian Gilbreth (iii) Graphic scheduling for planning and controlling of
work
(d) Max Weber (iv) Bureaucratic organisation
Code :
(a) (b) (c) (d)
(1) (i) (ii) (iii) (iv)
(2) (i) (iii) (ii) (iv)
(3) (iv) (iii) (ii) (i)
(4) (iv) (i) (ii) (iii)

7. The achievement of goals with the least amount of resources is :

(1) Effectiveness (2) Efficiency (3) Productivity (4) Both (1) and (2)

8. Which one of the following is the fundamental rethinking and radical redesign of business
processes to achieve improvements in performance ?
(1) Reengineering (2) Reorganising
(3) Revisiting (4) Rescheduling

N-01717 !N-01717-PAPER-II! 4 Paper-II

9. Match the following and select the code of correct matching :
List - I List - II
(a) Motivating through rewards (i) Charismatic leadership

and penalties
(b) Changing organisation by creating (ii) Situational leadership
and communicating a vision

(c) Influencing by dint of personality (iii) Transactional leadership

and charm
(d) Modifying style with respect to (iv) Transformational leadership

readiness of followers
Code :
(a) (b) (c) (d)

(1) (iii) (i) (ii) (iv)

(2) (iii) (iv) (i) (ii)
(3) (iii) (iv) (ii) (i)

(4) (iv) (iii) (ii) (i)

10. Which one of the following is not a ‘hygiene factor’ of Herzberg’s Two Factor theory ?

(1) Interpersonal relations (2) Working conditions

(3) Responsibility (4) Job security

11. Assertion (A) : Promotion is a move within the organisation to a higher position that has
greater responsibilities and requires more advanced skills.
Reasoning (R) : Promotion may not involve a raise in status but a hike in salary is a must.
Code :

(1) (A) and (R) both are correct.

(2) (A) and (R) both are incorrect.
(3) (A) is correct whereas (R) is incorrect.

(4) (A) is incorrect whereas (R) is correct.

N-01717 !N-01717-PAPER-II! 6 Paper-II

12. Match the following and select the code of correct matching :

List - I List - II

(a) Identification of leadership potential (i) Vocational Tests

(b) Finding most suitable area of working (ii) Aptitude Tests

(c) Discovering interest and potential (iii) Intelligence Tests

for acquiring skills

(d) Measuring capacity to think, learn (iv) Personality Tests

and draw relationships

Code :

(a) (b) (c) (d)

(1) (iv) (iii) (ii) (i)

(2) (i) (ii) (iii) (iv)

(3) (iv) (i) (ii) (iii)

(4) (i) (iii) (ii) (iv)

13. Which one of the following is a facility to file anonymous complaints ?

(1) Juke Box (2) Wide Box (3) Gripe Box (4) Hard Box

14. Which of the following is/are not gainsharing plan(s) ?

(a) Scanlon Plan

(b) Rucker Plan

(c) Employee Stock Option Plan

(d) Improshare Plan

Code :

(1) (c) only

(2) (d) only

(3) (c) and (d) both

(4) (b), (c) and (d)

N-01717 !N-01717-PAPER-II! 8 Paper-II

15. In which one of the following methods of performance appraisal, predetermined percentages
of rates are placed in various performance categories ?
(1) Alternation Ranking Method
(2) Forced Distribution Method
(3) Paired Comparison Method
(4) Check - list Method

16. Indicate the correct code for the combination from the following regarding the superiority of
the wealth maximisation over the profit maximisation objective of the financial management :
(a) It takes into account long term stability and survival of the firm.
(b) It takes care of all other objectives of the firm like exploring and expanding markets, etc.
(c) It is based on the assumption of perfect competition in the market.
(d) It considers risk alongwith returns.
Code :
(1) (a), (b), (c) and (d)
(2) (b), (c) and (d)
(3) (a), (b) and (d)
(4) (a), (c) and (d)

17. The controller function of the financial management concerns with :

(1) advertising the public issue of the firm
(2) negotiating with banks for loans
(3) analysing variance between standard costs and actual costs
(4) estimating the future cash flows from certain project

18. Capital Asset Pricing Model (CAPM) for risk measurement has been given by :
(1) Sharpe and Lintner
(2) Lintner and Treynor
(3) Sharpe, Lintner and Treynor
(4) Lintner, Modigliani and Miller

N-01717 !N-01717-PAPER-II! 10 Paper-II

19. Beta (β) is a measure of :
(1) Systematic Risk (2) Unsystematic Risk
(3) Total Risk (4) Business Risk

20. Capital budgeting is concerned with :

(1) Arranging cash resources for the project.
(2) Managing the working capital of the firm.
(3) Managing the fixed assets through repairs and renewals.
(4) Evaluating the returns and investment in projects.

21. Which one of the following is the demand state where “Consumers dislike the product and
may even pay to avoid it” ?
(1) Unwholesome demand (2) Declining demand
(3) Negative demand (4) Latent demand

22. Evaluate the statements according to Brand Asset Valuator Model of Brand Equity :
Statement (I) : Knowledge measures the degree to which a brand is seen as different from
others as well as its pricing power.
Statement (II) : Esteem measures perceptions of quality and loyalty or how well the brand
is regarded and respected.
Code :
(1) Both the Statements are correct.
(2) Both the Statements are incorrect.
(3) Statement (I) is correct while Statement (II) is incorrect.
(4) Statement (I) is incorrect while Statement (II) is correct.

23. If a coaching institute provides some supporting study material along with teaching, then
which one of the following service mix category would it be ?
(1) Hybrid offering
(2) Major service with accompanying minor goods and services
(3) Tangible good with accompanying services
(4) Pure service

N-01717 !N-01717-PAPER-II! 12 Paper-II

24. Statement (I) : A low market - penetration index indicates substantial growth potential for
all the firms.

Statement (II) : Generally, price competition increases and margins fall when the market -
penetration index is already high.

Code :

(1) Both the Statements are correct.

(2) Both the Statements are incorrect.

(3) Statement (I) is correct while Statement (II) is incorrect.

(4) Statement (I) is incorrect while Statement (II) is correct.

25. Which one of the following is a system of partnerships and alliances that a firm creates to
source, augment, and deliver its offerings ?

(1) Value network

(2) Omnichannel marketing

(3) Integrated marketing channel system

(4) Direct marketing channel

26. Statement (I) : Time study is an area of study whose fundamental purpose is to set time
standards for work using different methods.

Statement (II) : Work measurement is a structured process of directly observing and

measuring (using a timing device) human work in order to establish the
time required for completion of the work by a qualified worker when
working at a defined level of performance.

Code :

(1) Both the Statements are correct.

(2) Both the Statements are incorrect .

(3) Statement (I) is correct while Statement (II) is incorrect.

(4) Statement (I) is incorrect while Statement (II) is correct.

N-01717 !N-01717-PAPER-II! 14 Paper-II

27. Which one of the following combinations of the characteristics of the popular layouts is not
matching ?

Fixed Product Process Cellular

Factors
layout layout layout layout
Material Often high
(1) Fixed path Variable path Variable path
Travel path
Ship Continuous Job or small Small to
(2) Process
building and repetitive batch medium batch
Diversified
Made to products
Standardized Diversified
(3) Product order, low using
product products
volume common
operations
Utilization of General
(4) Moderate Very high High
Facilities purpose

28. In the context of distinguishing between forecasting and prediction, which one of the following
statements is false ?
(1) Forecasting is based on a theoretical model while prediction may be based on intuition.
(2) Forecasting reflects management’s judgement after taking all available information into
account; while prediction involves the projection of the past into the future.
(3) Error analysis is possible in the case of forecasting while no error analysis is done in the
case of prediction.
(4) No objectivity is found in the case of prediction.

29. An activity that consumes no time but shows precedence among activities is known as :
(1) Slack activity
(2) Successor activity
(3) Dummy activity
(4) Critical activity

30. Which one of the following is not correct matching between level of facility planning and
type of activity ?
(1) Global level and site location and selection
(2) Macro layout level and Site planning
(3) Micro layout level and Cell design
(4) Sub - Micro layout level and work station and Cell design

N-01717 !N-01717-PAPER-II! 16 Paper-II

31. Which one of the following statements is false ?
(1) Sample space refers to the collection of all favourable outcomes of an experiment.
(2) Collectively exhaustive events are those whose union is sample space.
(3) All the outcomes of an experiment are known as sample space.
(4) Two events are said to be independent if the happening of one does not affect the
probability of happening of the other.

32. Which one of the following is a false statement?

(1) A binomial distribution involves infinite number of trials
(2) The mean and the variance of a Poisson distribution are equal
(3) The standard normal distribution has µ=0 and σ=1
(4) The standard deviation of an exponential distribution is equal to its mean

33. In the context of coefficient of correlation (r), match the items of List - I with the items of
List - II and select the code of correct matching :

List - I List - II

1−r 2
(a) (i) Probable error of r
n

 1−r 2 
(b) (0.6745)   (ii) Coefficient of determination
 n
 

(c) r2 (iii) Standard error of r

Code :
(a) (b) (c)
(1) (ii) (i) (iii)
(2) (iii) (ii) (i)
(3) (ii) (iii) (i)
(4) (i) (ii) (iii)

N-01717 !N-01717-PAPER-II! 18 Paper-II

34. Which one of the following statements is true ?
(1) If one of the regression coefficients is greater than one, the other must also be greater
than one.
(2) The product of the two regression coefficients is always more than one.
(3) Correlation coefficient is the arithmetic mean of the two regression coefficients.
(4) The signs of the two regression coefficients are always the same.

35. In the absence of which of the following, SPSS can be used as an alternate ?
(1) MS Word (2) MS Excel (3) MS Access (4) MS Datapro

36. Match the items of List - I with List - II and select the code of correct matching :
List - I List - II
(a) Merger of Vodafone and Idea (i) Business Strategy
(b) Launch of Apple iphone 7 plus (ii) Operational Strategy
(c) Manufacturing Samsung mobile handsets in India (iii) Corporate Strategy
Code :
(a) (b) (c)
(1) (iii) (i) (ii)
(2) (iii) (ii) (i)
(3) (ii) (iii) (i)
(4) (ii) (i) (iii)

37. Which among the following are 5 Ps of strategy as identified by Mintzberg ?

(a) Plan
(b) Problem
(c) Pattern
(d) Position
(e) Ploy
(f) Perspective
Code :
(1) (a), (b), (c), (d) and (e)
(2) (a), (b), (d), (e) and (f)
(3) (b), (c), (d), (e) and (f)
(4) (a), (c), (d), (e) and (f)

N-01717 !N-01717-PAPER-II! 20 Paper-II

38. Assertion (A) : A firm’s relative position within its industry determines whether the firm’s
overall profitability is above or below the industry average.

Reasoning (R) : The fundamental basis of average profitability in the long run is sustainable
competitive advantage.

Code :

(1) (A) and (R) both are correct and (R) is the right explanation of (A).

(2) (A) and (R) both are correct but (R) is not the right explanation of (A).

(3) (A) is correct but (R) is incorrect.

(4) (R) is correct but (A) is incorrect.

39. Statement (I) : A “Star” is the market leader in a high-growth market ; and it has sufficient
cash to support other businesses.

Statement (II) : “Dogs” have weak market share in high - growth market.

Code :

(1) Statement (I) is correct but (II) is incorrect.

(2) Statement (II) is correct but (I) is incorrect.

(3) Both the Statements (I) and (II) are correct.

(4) Both the Statements (I) and (II) are incorrect.

40. Which among the following is not a generic strategy ?

(1) Unity Strategy

(2) Cost Leadership Strategy

(3) Differentiation Strategy

(4) Niche Strategy

N-01717 !N-01717-PAPER-II! 22 Paper-II

41. Elements of entrepreneurial competencies, according to the theorist of the subject, pertain to
which one of the following ?

(1) Body of knowledge, set of skills, cluster of appropriate motives and traits

(2) Ability to prepare viable project, executional skills and materialisation of group goals

(3) Ability to work in a group, enforce group dynamics and motivate employees

(4) Assigning priorities to hierarchy of Maslow’s monetary needs and non-monetary needs

42. Under the new norms of Micro, Small and Medium Enterprises Development (MSMED) Act
2006, the criteria of investment limit in plant and machinery for MSME falls under which
one of the following category ?

(1) Micro ` 25 lakh, small ` 5 crore, Medium ` 10 crore

(2) Micro ` 20 lakh, small ` 2.5 crore, Medium ` 5 crore

(3) Micro ` 20 lakh, small ` 6 crore, Medium ` 8 crore

(4) Micro ` 25 lakh, small ` 10 crore, Medium ` 15 crore

43. Entrepreneurial Judo strategy aims at which one of the following ?

(1) Filling holes left by others in the industry.

(2) Developing effectiveness in the industry.

(3) Mobilising finance and effective use to reduce NPAs.

(4) Creating competitive environment in the environment of SMMEs.

N-01717 !N-01717-PAPER-II! 24 Paper-II

44. Preparation of a business plan as a pre-requisite to a promotion of a business enterprise,
relates to which one of the following ?

(1) There is no flaws in the business idea, the fashion, conviction and tenacity of the
entrepreneur.

(2) Make arrangement for finance and prevent occurrence of NPAs by business entity.

(3) Ensure that business entity works at break even level.

(4) Make plan to raise finance from market and alternative investment opportunities.

45. Federation of Associations of Small Industries of India (FASII) promoted in 1959 is which
one of the following type ?

(1) Government organisation

(2) Liaisoning organisation

(3) Small Scale unit

(4) SSI Board

46. Statement (I) : The science of ethics is a normative science.

Statement (II) : Normative sciences judge the value of the facts in terms of an idea ;
concerned with judgements of ‘what ought to be’ but not with factual
judgements.

Code :

(1) Statement (I) is correct but Statement (II) is incorrect.

(2) Statement (II) is correct but Statement (I) is incorrect.

(3) Both the Statements (I) and (II) are incorrect.

(4) Both the Statements (I) and (II) are correct.

N-01717 !N-01717-PAPER-II! 26 Paper-II

47. Match the items of List (I) with those of List (II) ; and choose the correct combination :
List - I List - II
(a) Ethics are the principles of conduct (i) John Donaldson
governing an individual or profession.
(b) Ethics is the discipline dealing with what (ii) Keith Davis
is good and bad, or right and wrong, or
with moral duty and obligation.
(c) Ethics are a set of rules that defines right (iii) Shea
and wrong conduct.
(d) Business ethics, in short can be described (iv) R. Wayne Mondy
as the systematic study of moral (ethical)
matters pertaining to business, industry or
related activities, institutions, or practices
and beliefs.
Code :
(a) (b) (c) (d)
(1) (iii) (iv) (i) (ii)
(2) (iii) (iv) (ii) (i)
(3) (iv) (iii) (ii) (i)
(4) (i) (ii) (iii) (iv)

48. Assertion (A) : Decisions in small matters largely tend to set a pattern for the more important
ones you may make as managers.
Reasoning (R) : A multi - industry survey conducted in the USA indicated that 40% of the
managers said that their superiors had at some time told them to do certain
things unethical.
Code :
(1) (A) and (R) both are correct and (R) is the right explanation of (A).
(2) (A) is correct whereas (R) is incorrect.
(3) (A) is incorrect whereas (R) is correct.
(4) (A) and (R) both are correct but (R) is not the correct explanation of (A).

N-01717 !N-01717-PAPER-II! 28 Paper-II

49. Deontological theory of ethics is concerned with which of the following ?
(a) Duty ethics
(b) Obligation ethics
(c) Rule based ethics
(d) Classical ethics
Code :
(1) (a) and (b)
(2) (a) and (c)
(3) (a) and (d)
(4) (a), (b) and (c)

50. Utilitarianism theory of ethics refers to which one of the following ?

(1) Welfare
(2) Duty
(3) Obligation
(4) Rules

-oOo-

N-01717 !N-01717-PAPER-II! 30 Paper-II

 MANAGEMENT
Paper – II
Note : This paper contains fifty (50) objective type questions, each question carrying two (2)
marks. All questions are compulsory.
1. The sum of the value of all final 4. Statement I : Demand for a
goods and services produced within a commodity refers to quantity of
country and net factor income from the commodity demanded at a
certain price during any
abroad is termed as particular period of time.
(A) GNP Statement II : Contraction of
demand is the result of increase
(B) Nominal GDP
in the price of the goods
(C) NNP concerned.
(A) Both I & II are correct.
(D) Real GDP
(B) Both I and II are incorrect.
(C) I is correct and II is incorrect.
2. If a firm raises ` 1,00,000 by the (D) II is correct and I is incorrect.
issue of debentures at 10%, repayable 5. Match the items given in List-I with
after 10 years, the rate of return that most suitable options given in List-II.
equates the present value of cash List – I List – II
inflows with the present value of (a) Rate of discount (i) Pay back
cash outflows is referred to as which equates period
the net present
(A) Explicit cost value to zero.
(B) Implicit cost (b) Ratio of present (ii) Internal
value of cash Rate of
(C) Specific cost inflows to the Return
(D) Future cost cash outflow.
(c) Percentage of (iii) Profitability
annual net Index
3. The major objective of economists to income earned
on average fund
monopolies is
invested in a
(A) lack of technological progress project.
in such industries. (d) Investment (iv) Average
divided by Rate of
(B) the dangerous impact on annual net cash Return
democratic government. inflow.
(C) the inability in an industry Codes :
where there is a single (a) (b) (c) (d)
(A) (iii) (ii) (iv) (i)
producer.
(B) (iii) (ii) (i) (iv)
(D) the tendency to restrict output (C) (ii) (iii) (iv) (i)
and charge higher price. (D) (ii) (iii) (i) (iv)
Paper-II 2 S-17-13
6. The process through which 9. Match the following :
individuals attempt to determine the a. Attitudes 1. Beliefs that
causes behind others’ behaviour is individuals
known as possess certain
characteristics
(A) Perception because of their
membership in
(B) Attitude certain groups.
(C) Attribution b. Job 2. Negative attitude
Satisfaction toward the
(D) Social identity theory members of
specific groups,
based solely on
the fact that they
7. Which theory of human motivation
are members of
focuses on personal perceptions of
those groups.
the performance process ?
c. Prejudice 3. Positive or
(A) Adam’s Theory of Inequality negative
attitudes held by
(B) McClelland’s Need Theory individuals
toward their
(C) Vroom’s Expectancy Theory jobs.

(D) Alderfer’s ERG Theory d. Stereo 4. Relatively stable

types clusters of
feelings, beliefs
and behavioural
8. Annual Reports, Balance Sheets, intentions toward
Brochures and Advertisements in specific objects,
organisational communication are the people or
means to aim at institutions.
Codes :
(A) Influencing
a b c d
(B) Image building (A) 1 2 3 4
(B) 2 3 4 1
(C) Group building
(C) 3 4 1 2
(D) Credibility building (D) 4 3 2 1

Paper-II 4 S-17-13
10. Match the following : 11. On-the-job training methods are not
a. Delegating 1. A function of a based on
situation wherein (A) Demonstration methods
a leader is (B) Interactive methods
effective only (C) Vestibule Training methods
when the style
(D) Apprentice training method
used to influence
and alter the
situation is 12. Minimum wage means
appropriate. (A) Wage sufficient to ensure the
b. Situational 2. Low nurturing workman food, shelter,
theory and low clothing, frugal comfort and
regulating provision for evil days.
behaviour. (B) Wages paid in proportion to
c. Grid 3. A function of a workman’s work efficiency.
training situation wherein (C) A wage sufficient to satisfy the
a leader permits workman’s basic needs.
subordinates to (D) A sum of money paid under
take part in contract by an employer to a
decision making workman for services rendered.
and permit them
a considerable 13. Which of the following statement is
degree of true ?
autonomy.
(A) Profit sharing is an agreement
d. Participative 4. A multi step freely entered into by which the
Leadership process designed employees receive share fixed
to cultivate in advance from the
concern for organization’s profits.
people and
(B) An experiment in profit shares
concern for
on a wide scale would therefore
production.
be definitely undertaking a
Codes : voyage of an unchartered sea.
a b c d
(C) Profit distribution under a
(A) 1 2 3 4 profit sharing plan are used to
(B) 2 1 4 3 fund employee retirement
(C) 3 2 4 1 plans.
(D) 4 3 1 2 (D) All of the above.
Paper-II 6 S-17-13
14. Performance appraisal includes 16. In which case,
(A) Check reviews done by the The acquirer puts pressure on the
supervisors. management of the target company
(B) review his performance in
by threatening to make an open offer,
relation to the objectives and
other behaviours. the board capitulates straight away
(C) Promote employees for self and agrees for settlement with the
appraisal. acquirer for change of control.
(D) All of the above.
(A) Poison Put
15. Match the following : (B) Bear Hug
a. Human 1. A goal-directed (C) Poison Pill
Resource approach in
Strategy which workers (D) None of the above
and their
supervisors set
goals together 17. Which of the following method of
for the up- incorporation of risk in the capital
coming appraisal budgeting decision framework is
period.
useful for situations in which
b. Compensation 2. Time during
which employees decisions at one point of time also
can choose not to affect the decisions of the firm at
be at work. some later date ?
c. Flexitime 3. A legally
required benefit (A) Certainty Equivalent Approach
that provides (B) Probability Distribution
medical care, Approach
income
continuation and (C) Risk-adjusted Discount Rate
rehabilitation Approach
expenses.
(D) Decision-tree Approach
d. Management 4. A firm’s
by Objectives deliberate use of
human resources
to help it to gain 18. In which of the approach, the market
or maintain an value of the firm depends upon the
edge against its EBIT and the overall cost of capital
competitors.
Codes : (A) Net Income Approach
a b c d (B) Net Operating Income
(A) 1 2 3 4 Approach
(B) 4 3 2 1
(C) Modigliani-Miller Approach
(C) 2 3 4 1
(D) 3 4 1 2 (D) None of the above
Paper-II 8 S-17-13
19. Which is the assumption of 21. A deliberate and careful choice of
Modigliani and Miller approach to organisation, product, price
cost of capital ? promotion, place strategies and
(A) The firms can be classified into policies best define the concept of
homogeneous risk class. (A) Marketing Mix
(B) The capital markets are (B) Product Mix
assumed to be perfect. (C) Market Penetration

(C) All investors have the same (D) Market Segmentation

expectations from a firm’s net
operating income which is 22. Rational motives in buying process
necessary to evaluate the value are explained as
of a firm. (A) Motives based on careful,
logical reasoning and self
(D) All of the above.
acceptance.
(B) Motives based on sensual
20. Match the following : satisfaction, fear and
List – I List – II entertainment.
(Functions of (Significance) (C) Activity buyer adopts to satisfy
Finance) buying needs.

a. Financial 1. Check on (D) All of the above.

Statements Financial
Activities 23. Which of the following combination,
according to hierarchy of effects
b. Administration 2. Reduction of
model is correct ?
of Tax Tax Liability
(A) Awareness – Liking –
c. Internal Audit 3. Allocation of
Knowledge – Conviction –
Fund
Preference – Purchase.
d. Budgeting 4. Income (B) Awareness – Knowledge –
Statement Liking – Preference –
Codes : Conviction – Purchase.
a b c d (C) Awareness – Liking –
Knowledge – Conviction –
(A) 1 2 3 4
Purchase – Preference.
(B) 4 3 2 1
(D) Awareness – Preference –
(C) 4 2 1 3 Knowledge – Liking –
(D) 2 3 4 1 Preference – Purchase.
Paper-II 10 S-17-13
24. This consists of two lists of 25. “Marketing concept is the
statements or terms and the candidate recognition on the part of
has to match an item in one list with management that all business
decisions at the firm must be made in
an item in the other.
the light of customer needs and
List – I List – II wants, hence that all marketing
activities must be under one
(Statement) (Terms)
supervision and that all activities of a
I. Brands which 1. Consideration firm must be coordinated at the top in
are evaluated set the light of market requirements.”
Who said it ?
for the
(A) Lazo and Carton
purchase
(B) Schwartz G
decision.
(C) King RL
II. Brands which 2. Evoked set (D) C.P. Mc Namara
are considered
by the buyer 26. Which one of the following is not a
for evaluation. qualitative forecasting method ?
(A) Educated guess
III. Brands which 3. Inept set (B) Executive Committee
are disliked Consensus
and avoided. (C) Delphi method
(D) Linear regression method
IV. Brands which 4. Inert set
the buyer is
– chart do not
aware but is 27. Statement I : Mean (X)
give the desired result about
indifferent
process variability.
towards it.
Statement II : Range (R) chart
Codes : monitors process variability.
(A) Statement I is correct, but
I II III IV
Statement II is false.
(A) 2 3 1 4 (B) Statement II is correct, but
Statement I is false.
(B) 1 2 3 4 (C) Both Statements I and II are
(C) 2 1 3 4 correct.
(D) Both Statements I and II are
(D) 2 1 4 3 false.
Paper-II 12 S-17-13
28. Which one is not a part of control 32. If the sample size is less than 50,
charts for attributes ? which non parametric test can be
(A) P-chart (B) V-chart used to test the independence of
(C) np-chart (D) c-chart attributes ?
(A) Chi-square test
(B) Fisher Irwin test
29. There are different phases in a
(C) Cochran Q test
Operations Research Project. They
(D) Kruskal Wallis test
are
(i) Research phase 33. Match the items given in List-I with
(ii) Action phase most appropriate options given in
(iii) Judgement phase List-II.
The correct sequence of these phases List – I List – II
is (a) Centroid (i) Multiple
(A) (i), (ii), (iii) (B) (iii), (i), (ii) Method Regression
(b) Hierarchical (ii) Factor
(C) (ii), (iii), (i) (D) (iii), (ii), (i)
Method Analysis
(c) Relationship (iii) MANOVA
30. The Graphical method can be used to between a single
solve metric dependent
(A) A Linear Programming and two or more
Problem (LPP) with all integer independent
data. variables
(B) A LPP with two decision (d) The main and (iv) Cluster
variables. interactive Analysis
(C) Any LPP. effects of
(D) A transportation problem with categorical
two origins and two variables on
destinations. multiple
dependent
interval
31. A vendor can make a profit of
variables.
` 3,000 with a probability of 0.4 or
Codes :
make a loss of ` 1,000 with a
(a) (b) (c) (d)
probability of 0.6. What is his
(A) (iv) (ii) (i) (iii)
expected profit ?
(B) (ii) (iv) (i) (iii)
(A) ` 600 (B) ` 800
(C) (ii) (iv) (iii) (i)
(C) ` 1,000 (D) ` 500 (D) (iv) (iii) (i) (ii)
Paper-II 14 S-17-13
34. Identify the window not associated 36. In BCG Matrix which division
with SPSS. represents the organisation’s best
(A) Editor long-run opportunities for growth
and profitability ?
(B) Syntax
(A) Question marks
(C) Output
(B) Stars
(D) Format Cells
(C) Cash Cows
(D) Dogs
35. Match the items given in Column-A
with the items given in Column-B.
37. In a comprehensive strategy
Column – A Column - B formulation framework which matrix
(a) A process to (i) Pattern reveals the relative attractiveness of
upgrade the recognition alternative strategies and thus
provides objective basis for selecting
quality of the
specific strategies.
data before it is
(A) SPACE Matrix
moved into a
(B) SWOT Matrix
data warehouse.
(C) QSPM Matrix
(b) A system that is (ii) Data
(D) Competitive Profile Matrix
used to run the Scrubbing
(CPM)
business in real
time and is
38. Stage 2 of strategy formulation
based on current
consists of
data.
(A) EFE Matrix, the IFE Matrix
(c) A critical (iii) Operational and the Competitive Profile
success factor in system Matrix (CPM).
data mining of (B) SWOT Matrix, SPACE Matrix,
large data store. BCG Matrix, the Internal-
Codes : External (IE) Matrix, and the
Grand Strategy Matrix.
(a) (b) (c)
(C) Quantitative Strategic Planning
(A) (ii) (iii) (i)
Matrix (QSPM).
(B) (iii) (ii) (i)
(D) EFE Matrix, the IFE Matrix
(C) (i) (ii) (iii) and Quantitative Strategic
(D) (ii) (i) (iii) Planning Matrix (QSPM).

Paper-II 16 S-17-13
39. Match the following : 40. Match the following :

Term Explanation List – I List – II

(a) Italian i. Importance on

a. Strategy 1. Enduring
Culture group loyalty
statements of
and consensus
purpose that
(b) American ii. Employment as
distinguish one
Culture workers of those
business from
who are
other simple agreeable,
firms. respectful and
obedient rather
b. Vision 2. Specific results
than innovative,
that an
creative and
organization independent.
seeks to achieve.
(c) Mexican iii. Willing to do
c. Mission 3. What do we want Culture business with

to become ? individuals they

do not know.
d. Objectives 4. Means by which
(d) Japanese iv. A culture where
long term
Culture in you do not
objectives will be soften up
achieved. executives with
praise before
Codes :
criticize.
a b c d Codes :

(A) 4 3 1 2 (a) (b) (c) (d)

(B) 4 2 3 1 (A) i ii iii iv

(B) iv iii ii i
(C) 1 3 2 4
(C) ii iii iv i
(D) 1 2 3 4
(D) iii iv i ii
Paper-II 18 S-17-13
41. An Entrepreneur who is dominated 44. _______ means identifying and
more by customs, religions, traditions imitating the best in the world at
and past practices and he is not ready specific tasks and functions.
to take any risk is called as (A) Quality circle
(A) Drone Entrepreneur
(B) Outsourcing
(B) Adoptive Entrepreneur
(C) Bench marking
(C) Fabian Entrepreneur
(D) Innovative Entrepreneur (D) Continuous Improvement

42. “Poverty is an artificial creation. It 45. Match the following :

does not belong to human civilization
(a) Action (i) New Actions are
and we can change that and can make
people come out of poverty through planning taken and old
redesigning our institutions and habits are broken.
policies.” This preamble refers to (b) Accounta- (ii) It is the periodic
(A) Women Entrepreneurship bility review of what
(B) Corporate Entrepreneurship has already been
(C) Social Entrepreneurship executed.
(D) None of the above
(c) Working (iii) It is the art of
the plan delegation to
43. Match the following :
implement a
List – I List – II
business plan.
(Subject) (Technique)
(d) Reviewing (iv) Making decisions
a. Entrepre- 1. Innovation
neurship the relating to the
b. Marketing 2. Promotion Mix progress order in which the
c. Inventory 3. Reorder Level Business plan is
Management implemented.
d. HR Planning 4. Appraisals Codes :
Codes : (a) (b) (c) (d)
a b c d
(A) (ii) (iii) (iv) (i)
(A) 1 3 2 4
(B) 1 2 3 4 (B) (iv) (iii) (i) (ii)

(C) 4 3 2 1 (C) (i) (iv) (iii) (ii)

(D) 4 2 3 1 (D) (iii) (iv) (ii) (i)
Paper-II 20 S-17-13
46. Which of the following duties is not 49. The obligation of an organisation
a general duty of directors of a behave in a ethical way is known as
company ?
(A) Duty of good faith (A) Knowledge about ethics

(B) Duty of care (B) Social responsibility of business

(C) Duty to attend Board Meeting
(C) Organisational behaviour
(D) Duty not to delegate
(D) Business without ethics

47. The principles to be followed for

corporate social responsibility are
50. Identify the correct sequence of steps
(A) involvement of stakeholders.
in a value identification process :
(B) maintaining transparency in
reporting. (i) Define the role of executive in
(C) independent verification of leading the staff.
policies and outcome.
(ii) Learn about and discuss the
(D) All of the above.
power of shared values.

48. Match the following : (iii) Obtain consensus that the

List – I List - II leaders are committed to
(a) Value (i) Aham creating value based work
Brahmasmi
place.
(b) Unethical (ii) Recycling
behaviour Waste (iv) Provide written material the
(c) Indian ethos (iii)Bribery executives can share with their
(d) Environmental (iv) Trust reporting staff.
responsibility worthiness
Codes :
Codes :
(a) (b) (c) (d) (A) (i), (ii), (iii) and (iv)

(A) (i) (iii) (ii) (iv) (B) (iv), (ii), (iii) and (i)
(B) (iv) (iii) (i) (ii)
(C) (ii), (iii), (i) and (iv)
(C) (ii) (iii) (iv) (i)
(D) (i) (iii) (iv) (ii) (D) (ii), (iii), (iv) and (i)

Paper-II 22 S-17-13
 MANAGEMENT
Paper – III
Note : This paper contains seventy fifty (75) objective type questions of two (2) marks each.
All questions are compulsory.
1. Hawthorne Experiment is related to the 7. Which among the following is not
(A) Systems theory concerned with the PERT evolution ?
(B) Classical theory
(C) Human relations theory (A) Polaris Project
(D) Scientific management theory (B) Lockhead Aircraft Corporation
2. Cost incurred in the past and is not (C) Both (A) and (B)
affected by a current decision is (D) None of the above
referred to as :
(A) Sunk cost 8. Before a company decides to target a
(B) Marginal cost particular market segment, which
(C) Incremental cost important factors are to be examined
(D) Replacement cost
against organization’s objectives and
3. The principle of organisation that no resources ?
employee should report to more than (A) Market size
one superior is called
(A) Scalar principle (B) Growth rate
(B) Span of control (C) Structural attractiveness
(C) Unity of command
(D) Unity of direction (D) All of the above

4. ‘Rege Committee’ is related to 9. Balance of Payment is

(A) Working conditions in Indian
Industry
(B) Social security in Indian Industry
(C) Individual differences in Indian
Industry
(D) None of the above
5. The factors affecting to P/E multiple are
(A) Dividend pay-out ratio and
required return
(B) Required return and expected
growth rate
(C) Dividend pay-out ratio and
expected growth rate
(D) Dividend pay-out ratio, required
return and expected growth rate
6. Which of the following is not one of
the benefits of E-Commerce ?
(A) E-Commerce offers greater
flexibility in meeting consumer
needs.
(B) E-Commerce can help to reduce
cost.
(C) E-Commerce increases potential
market share.
(D) E-Commerce increases the net
cost per contact.
Paper-III
(A) Balance of trade + Net earnings
on invisibles
(B) Foreign exchange inflow –
Foreign exchange outflow
(C) Balance of current account +
Balance of capital account +
Statistical discrepancy
(D) Export of goods – Import of goods
10. Factors contributing to unethical
behaviour are
(A) Poor leadership
(B) Poor internal communication
(C) Lack of management support
(D) All of the above
11. Which of the following is not included
in the five forces of competition ?
(A) Bargaining power of suppliers
(B) Bargaining power of consumers
(C) Threat of substitutes
(D) Strategic planning
2 J-17-12
12. Match the following : 16. Which type of promotion has been
List-I List-II described by W. R. Spriegel ?
Financial Institution Year of (i) Departmental Promotion
Establishment (ii) Inter-departmental Promotion
(i) Industrial I. 1955 (iii) Inter-plant Promotion
Development (iv) Inter-company Promotion
Bank of India (A) (i), (ii), (iii)
(IDBI) (B) (ii), (iii), (iv)
(ii) Small Industries II. 1964 (C) (i), (ii), (iv)
Development (D) (i), (iii), (iv)
Bank of India
(SIDBI) 17. Market risk is also known as
(iii) Natural Small III. 1948 (A) Systematic risk or diversifiable
Industries risk
Corporation
(B) Unsystematic risk or
(NSIC) diversifiable risk
(iv) Industrial Finance IV. 1989
(C) Systematic risk or non-
Corporation of
diversifiable risk
India (IFCI)
(D) Unsystematic risk or non-
Codes :
diversifiable risk
(i) (ii) (iii) (iv)
(A) I IV III II
18. The discount rate that makes NPV
(B) II IV I III equal to zero is known as
(C) III I II IV (A) Benefit–Cost ratio
(D) III II I IV (B) Internal Rate of Return
13. The practice of selling two or more (C) Discounted Pay-back period
separate products together for a single (D) Profitability Index
price is :
(A) Bundling 19. Match the following :
(B) Dumping List-I List-II
(C) Both (A) and (B) (i) Poisson I. Mean is
(D) None of the above distribution greater than
variance
14. Which is the oldest and simplest form
of organisation ? (ii) Normal II. Mean &
distribution Variance are
(A) Functional organisation
same
(B) Committee organisation
(iii) Chi-Square III. Symmetric
(C) Line organisation
distribution
(D) Line and staff organisation
(iv) Binomial IV. Positively
15. While considering promotion of an distribution skewed
employee, the following is the most Codes :
important consideration : (i) (ii) (iii) (iv)
(A) Seniority (A) II I III IV
(B) Competence (B) IV I III II
(C) Loyalty (C) II III IV I
(D) Only (A) and (B) (D) IV II I III
Paper-III 4 J-17-12
20. A critical activity is defined as one 26. Transactional Analysis (TA) is related
whose to
(A) Total float is zero. (A) Learning (B) Attitudes
(C) Perception (D) Personality
(B) Free float is zero.
(C) Duration is the longest. 27. Which among the following is odd one ?
(D) Duration is the smallest. (A) BMS (B) FICCI
(C) AITUC (D) INTUC
21. In the buying decision process, what is 28. Which of the following strategies
the term used for a person who first requires a company to concentrate its
suggests buying the product or service ? efforts in one or more narrow segments
(A) Influencer (B) Initiator instead of a broad based strategy ?
(C) Decider (D) Buyer (A) Cost-Leadership strategy
(B) Differentiation strategy
(C) Focus strategy
22. Strategies formulated to convert a sick (D) None of the above
unit to healthy is referred to :
(A) Turnaround 29. In case where the investment can be
made in stages and is dependent on the
(B) Expansion future outcomes, the capital budgeting
(C) Diversification technique that can be adopted will be
(D) Stabilisation (A) Simulation technique
(B) Hiller model
(C) Decision-tree analysis
23. Which one is an international credit (D) Scenario analysis
rating agency ?
(A) Mc Kinsey 30. Statement (i) : In an organization we
pay for jobs, we do not pay for
(B) B C G men.
(C) Standard and poor Statement (ii) : The compensation
(D) I M F must be as per the Job assigned.
(A) Statement (i) is correct but (ii) is
false.
24. Ethical challenges may arise on (B) Statement (ii) is correct but (i) is
account of false.
(A) Failure of personal character, (C) Both statement (i) and (ii) are
conflict of personal value & correct.
organisational goals and conflict (D) Both statement (i) and (ii) are
false.
of organisational goals and social
values 31. If the regression coefficient of the
(B) Hazardous but popular products independent variable in a simple
(C) Both (A) and (B) regression equation is negative, then
(D) None of the above which of the following statement is
correct ?
(A) The coefficient of correlation
25. Supply curve slopes backward towards between the variables is zero.
left, when : (B) The coefficient of correlation
(A) More quantity is supplied at between the variables is the
higher prices. positive square root of the
(B) Less quantity is supplied at coefficient of determination.
higher prices. (C) The coefficient of correlation
between the variables is the
(C) Same quantity is supplied at negative square root of the
higher prices coefficient of determination.
(D) None of the above (D) None of the above.
Paper-III 6 J-17-12
32. Selling the products only through a 39. Need-Hierarchy Theory was
single wholesaler or retailer is called propounded by
(A) Extensive distribution strategy (A) Peter F. Drucker
(B) Selective distribution strategy (B) Abraham Maslow
(C) Exclusive distribution strategy (C) Mc – Fraland
(D) Mass merchandise strategy (D) Elton Mayo
33. Marketing myopia concept was 40. Additional revenue generated by
developed by selling an additional unit is
(A) Philip Kotler (A) Incremental revenue
(B) Peter Drucker (B) Marginal revenue
(C) C. K. Prahlada (C) Total revenue
(D) Theodore Levitt (D) Average revenue
34. Emerging market economies are : 41. What is the term used if a market is
(A) A part of developed countries divided into distinct groups of buyers
(B) Newly industrializing countries who might require separate products or
(C) A part of developing countries marketing mixes ?
(D) A part of third world countries (A) Market Targetting
(B) Market Positioning
35. What describes the market, product (C) Market Segmentation
and technological area of business ?
(A) Company’s mission (D) Market Co-ordination
(B) Company’s vision 42. Bath tub curve is encountered in
(C) Strategic plan (A) Process control
(D) None of the above (B) Acceptance sampling
36. Activities taken up on part time or (C) Both (A) and (B)
casual basis to raise income is : (D) Maintenance management
(A) Self employment
(B) Income generation 43. Cost advantage is referred as
(C) Entrepreneurship (A) A firm achieving a lower
(D) None of the above cumulative cost of performing
value activities than its
37. “The optimal pay-out ratio for growth competitors
firm is nil and declining firm is 100%” (B) Firm trying to outsource all relative
is established by products from one company to gain
(A) Gordon model economies of scale
(B) Walter model (C) Firm trying to restrict the cost
(C) Both (A) and (B) control measure relative to its
(D) None of the above nearer competitor
(D) None of the above
38. Match the following :
List-I List-II 44. If a hypothesis is tested at a significant
(i) Z – Theory (a) Hergberg level of 5%, then it means that
(ii) Y – Theory (b) Maslow (A) There is 5% probability that the
(iii) Hierarchy Needs (c) Mc Gregor null hypothesis will be rejected
Theory though it is true.
(iv) Hygiene Theory (d) Urwick (B) There is 5% probability that the
Codes : null hypothesis will be false.
(a) (b) (c) (d) (C) There is 5% probability that the
(A) (iv) (i) (iii) (ii) null hypothesis will be true.
(B) (iii) (ii) (iv) (i) (D) There is 95% probability that the
(C) (iv) (iii) (ii) (i) alternative hypothesis will be
(D) (iii) (iv) (i) (ii) false.
Paper-III 8 J-17-12
45. The time that elapses between the 50. The term “Grapevine Communication”
purchase of raw materials and the is related to
collection of cash for sales is referred as (A) Formal Communication
(B) Informal Communication
(A) Production cycle (C) Written Communication
(B) Operating cycle (D) Vertical Communication
(C) Cash cycle
51. Taylor differential piece rate system is
(D) Organisation cycle related to
46. One of the following is not included in (A) Time wage system
(B) Piece wage system
job descriptions : (C) Incentive wage system
(A) Job title (D) None of the above
(B) Location
(C) Penal actions 52. Financial risk arises from
(A) R & D and operations stages of
(D) Duties value chain
(B) GNP growth rate and
47. In which type of market situation competitive environment
competitors offer same type of (C) Volatility of interest rates,
products and services for the same currency rates, commodities
prices and stock prices
price with no differentiation ? (D) Changes in laws and regulations
(A) Monopolistic competition
(B) Monopoly 53. A company using high price and high
(C) Oligopoly promotion policy is adopting the
following strategy :
(D) Perfect competition (A) Slow skimming
(B) Rapid Penetration
48. Sick enterprise is referred to which of (C) Slow Penetration
the following bodies for rehabilitation ? (D) Rapid Skimming
(A) Small Industries Development 54. Which one of the following is the
Bank of India (SIDBI) functions of personnel management ?
(B) Small Industries Development (A) Planning, Organising, Staffing,
Organisation (SIDO) Directing and Controlling
(C) Board for Industrial and (B) Planning, Organising,
Financial Restructure (BIFR) Coordinating, Budgeting and
Controlling
(D) National Small Industries (C) Procurement, Development,
Corporation (NSIC) Compensation, Integration and
Maintenance
49. Match the following : (D) Perception, Development,
(i) Wealth of Nations I. Robert Learning, Organisation and
Giffen Behaviour
(ii) Income and II. Paul M. 55. Match the following :
Substitution effect Sweezy (i) Net present I. Inflow after
(iii) Kinked Demand III. Cobb- value method interest and tax
(ii) Average rate II. Discounted
Curve Douglas of return cash flow
(iv) Production function IV. Adam (iii) Internal rate III. Traditional
Smith of return method
Codes : (iv) Pay back IV. Decision based
(i) (ii) (iii) (iv) method on cut-off rate
Codes :
(A) IV II I III (i) (ii) (iii) (iv)
(B) IV I III II (A) IV I II III
(C) IV II III I (B) IV III II I
(C) II I IV III
(D) IV I II III (D) I III IV II
Paper-III 10 J-17-12
56. The number of product
company carries is called
(A) Product range
(B) Product mix depth
(C) Product mix width
(D) Product line length
lines a 61. Which of the following is not a market
oriented pricing technique ?
(A) Penetration pricing
(B) going rate pricing
(C) perceived value pricing
(D) Early-cash recovery pricing

57. Entrepreneurial failures can be attributed 62. Which one of the following facilitates
to : E-Commerce ?
(A) Low quality raw materials (A) Public relations
(B) Labour problems (B) Direct marketing
(C) High overhead costs (C) Personal selling
(D) All of the above (D) Product quality
63. Sensitivity analysis may be used in
58. What are the economic goals that guide
(A) Linear programming
the strategic direction of every viable
(B) Transportation programming
business organization ?
(C) PERT
(A) Goal, profit and public image
(D) CPM
(B) Public image, growth and profit
(C) Survival, growth and profitability
64. Sensitivity training method is a part of
(D) Growth, profitability and public
image (A) On-the-job training method
(B) Off-the-job training method
59. Match the following : (C) Vestibule training method
(i) Sensitivity (a) Leadership (D) None of the above
training
(ii) Hygiene (b) Organisational 65. A machine on the average produces
factors Development 5% defective items. What are the mean
(iii) Number of (c) Motivation and variance in a set of 32 items ?
subordinates (A) 16, 8
(iv) Likert’s (d) Span of (B) 16, 4
management management (C) 4, 16
system (D) None of the above
Codes :
(i) (ii) (iii) (iv) 66. Distribution strategy of a company will
(A) (b) (c) (d) (a) be influenced by
(B) (a) (c) (d) (b) (A) Nature of product
(C) (d) (c) (a) (b) (B) Target segment of consumers
(D) (a) (b) (c) (d) (C) Pricing policy
(D) All of the above
60. If the intrinsic value of the share is
greater than market value, such shares 67. Which of the following is an example
are : for unsystematic risk ?
(A) Under valued (A) Interest rate risk
(B) Over valued (B) Exchange rate risk
(C) Neutral (C) International risk
(D) None of the above (D) Operating risk
Paper-III 12 J-17-12
68. Match the following : 72. Which of the following is to be
List – A List – B considered by an investor while
(i) Job (a) Grading jobs exercising the option ?
Analysis according to (A) Exercise price
scale of pay (B) Spot price
(ii) Job (b) A statement of
(C) Exercise price and spot price
Description human qualities
to fill the job (D) None of the above
(iii) Job (c) A process of
Specification obtaining job 73. Match the following :
facts
List – A List – B
(iv) Job (d) A statement of
Classification duties and (i) Indian Trade Union (a) 1923
responsibilities Act
of a job (ii) Industrial Dispute (b) 1926
Codes : Act
(i) (ii) (iii) (iv) (iii) The Workmen’s (c) 1948
(A) (c) (d) (b) (a) Compensation Act
(B) (c) (d) (a) (b) (iv) The Employees’ State (d) 1947
(C) (a) (b) (c) (d) Insurance Act
(D) (b) (c) (d) (a) Codes :
(i) (ii) (iii) (iv)
69. A positioning strategy should include
(A) (b) (d) (a) (c)
the following strategies except
(A) Product strategy (B) (b) (c) (d) (a)
(B) Personnel strategy (C) (b) (d) (c) (a)
(C) Promotion strategy (D) (a) (c) (b) (d)
(D) Advertising strategy
74. Who creates and implements strategic
70. Which among the following will suit change in an organization ?
the best as location for a chemical
plant ? (A) Directors
(A) Desert Area (B) Consultants
(B) Coastal Area (C) H. R. Managers
(C) Plains (D) Strategist
(D) Hill Area
75. Which of the variables is not used by
71. When making purchase decisions the marketers for demographic
main consideration involved in segmentation ?
organizational buying is
(A) Age
(A) Product quality
(B) Price (B) Income
(C) Service (C) Gender
(D) All the above (D) Poverty

Paper-III 14 J-17-12
 MANAGEMENT
PAPER – III
Note : This paper contains seventy five (75) objective type questions of two (2) marks each.
All questions are compulsory.
1. Which of the following is not one of
the important objectives of Financial
Management ?
(A) Profit maximisation
(B) Wealth maximisation
(C) Value maximisation
(D) Social responsibility
2. For ‘make or buy decision’, which
cost is to be considered ?
(A) Marginal cost
(B) Total cost
(C) Fixed cost
(D) None of the above
3. Which is the method applied for
measuring GNP ?
(A) Income method
(B) Expenditure method
(C) Value Added method
(D) All of the above
4. Which of the following project
appraisal method is not based on time
value of money ?
(A) Payback method
(B) Net present value method
(C) Internal rate of return method
(D) Discounted payback method
5. Micro, Small and Medium Enterprises
Development Act, 2006 is related to
(A) Industrial Policy
(B) Investment Limit
(C) Business Opportunities
(D) None of these
Paper-III
6. Selection is the process in which
candidates for employment are divided
into two classes – those who are to be
offered employment and those who are
not.” This is stated by
(A) Dale Yoder
(B) Milton M. Mandell
(C) R.D. Agarwal
(D) Edwin Flippo
7. Who defines advertising as “any paid
form of non-personal presentation and
promotion of ideas, goods and services
by an identified sponsor ?
(A) Philip Kotler
(B) C.K. Prahlad
(C) Chartered Institute of Marketing
(D) American Marketing Association
8. The exchange rate between the
currencies of two countries will be
equal to the ratio of the price indices in
these countries is explained by
(A) Inflation adjustment
(B) Purchase power parity
(C) Interest rate parity
(D) Transaction exposure
9. The ultimate mission or purpose is to
relate human resources to future
enterprise needs, so as to maximize the
future return on investment in human
resources. It is referred as
(A) Demand and Supply
(B) Forecasting
(C) Human Resource Planning
(D) Human Resource Development
10. Other things being equal an increase in
income leads to a decrease in demand for
(A) Superior Goods
(B) Inferior Goods
(C) Both (A) and (B)
(D) None of the above
2 D-17-12
11. “Hind Mazdoor Sabha” established in 17. An entrepreneurial person employed
which year ? by a corporation and encouraged to be
(A) 1940 innovative and creative is referred to as
(B) 1942 (A) Competitor (B) Supplier
(C) 1948 (C) Entrepreneur (D) Intrapreneur
(D) 1952
18. Which of the following provides
direction, serves as standards for
12. The evaluation of Business activities
evaluating performance and motivates
and behaviour as right or wrong is
members of the organization ?
called
(A) Mission (B) Values
(A) Corporate Governance
(C) Objectives (D) Goals
(B) Business Ethics
(C) Social Responsibility 19. The four systems of Management in
(D) None of the above terms of Leadership styles are related to
(A) Blake and Mouton
13. A market structure which consists of (B) Philip Kotler
one buyer and one seller is referred as (C) Peter F. Drucker
(A) Monopsony (D) Rensis Likert
In investment decision, E is associated
(B) Bilateral monopoly
(C) Monopoly 20.
(D) Duopoly with
(A) Return
(B) Risk
14. At which stage of new product
(C) Return and Risk
development process, the launching of
(D) None of the above
New Product will take place ?
(A) Business Analysis 21. In production control, scheduling
(B) Commercialization includes
(C) Test Marketing (A) Deciding about the time when
(D) Marketing Strategy Development the production will reach various
departments.
15. The cost of equity can be measured as (B) Estimating the time to be
(A) Rate of interest (1 – t). consumed in these departments.
(B) Rate of dividend (1– t). (C) How much time will be taken in
(C) Rate of dividend × transferring production from one
(Face value – Issue Price) department to another.
n (D) All of the above.
D1
(D) P + g 22. Making profit by taking advantage of
0 different prices prevailing in different
markets is referred as
16. If the regression coefficient B in (A) Hedging (B) Speculation
Y = A + B X is equal to zero, then the (C) Arbitrage (D) Gambling
regression line will
23. Gegabyte refers to
(A) pass through the origin
(A) 1024 Bytes
(B) be parallel to the x-axis
(B) 1024 Kilobytes
(C) be parallel to the y-axis
(C) 1024 Megabytes
(D) Neither intersect x-axis nor y-axis
(D) 102400 Bytes
Paper-III 4 D-17-12
24. Environmental issues can be managed by 30. Statistical Quality Control requires
(A) Investing in environment friendly determination of
process or products. (A) Quality tolerance limit
(B) Managing environmental (B) Quantity measurement
regulations. (C) Production lead time
(C) Investing in environmental (D) Inventory carrying cost
performance improvement.
(D) All of the above. 31. With reference to Working Capital
Management, the term ‘float’ relates to
25. A formal document of what the (A) Inventory Management
entrepreneur intends to do to sell (B) Receivables Management
enough of the firm’s product or service (C) Cash Management
to make a satisfactory profit is called (D) Marketable Securities
(A) Long range plan
(B) Strategic plan 32. Which communication component is
(C) Business plan not a paid form of communication ?
(D) None of the above (A) Advertising
(B) Sales promotion
26. Among the following financial (C) Personal selling
derivatives, which involves the least (D) Publicity
risk for the holder ?
(A) Forward (B) Option 33. The Government of India established
(C) Futures (D) Swap the Small Industries Development
Organisation (SIDO) in the year :
27. Which level of Managers translate the (A) 1951 (B) 1972
corporate strategy into concrete (C) 1954 (D) 1982
objectives for their individual
business ? 34. Match the following :
(A) Business level List – I List – II
(B) Corporate level a. Functional 1. F.W. Taylor
(C) Multi-Business level Organisation
(D) Functional level b. Transactional 2. Mc Clelland
Analysis
28. The number of subordinates a superior c. Managerial 3. Eric Berne
can effectively handle is called Grid
(A) Organising people d. Need Theory 4. Blake and Mouton
(B) Span of control Codes :
(C) Direction a b c d
(D) Coordination (A) 1 3 4 2
29. Selection of specific media in which (B) 1 2 3 4
advertisements will be run and when (C) 4 3 2 1
they will be run to reach the target (D) 2 1 4 3
market is called
(A) Advertising 35. Which of the following is not a
(B) Public Relations Trading block ?
(C) Media Planning (A) NAFTA (B) ASEAN
(D) Publicity (C) SAARC (D) IMF
Paper-III 6 D-17-12
36. Takeover generally involves 39. Who is father of Administrative
(A) the acquisition of part of an Management Theory ?
undertaking to enable the (A) Max Weber
acquirer to increase the market (B) Frank Gilbraith
share of the product concerned. (C) Henry Fayol
(B) the acquisition of certain block of (D) Henry Gantt
equity capital of a company
which enables the acquirer to 40. The process of determining the tasks
exercise control over the affairs that make-up a job and the skills,
of the company. abilities and responsibilities needed to
(C) taking over the responsibility to perform the job is called
have trade agreement for finished (A) Job Analysis
product. (B) Job Description
(D) taking over certain long-term (C) Job Enrichment
liabilities of another group (D) All of the above
company to help it financially.
41. GATT stands for
37. Which of the following is not a (A) General Accord on Tariff and
function of distribution agency ? Trade
(A) Transportation (B) Generous Agreement on Trade
(B) Servicing and Tariff
(C) Inventorying (C) General Agreement on Tariff and
(D) Manufacturing Trade
38. Cars are parked in a very big parking (D) Generalist Agreement on Trade
lot. A researcher is required to estimate and Tariff
the proportion of cars that are red or 42. People who take the risks necessary to
the proportion of cars that are from a organize, manage and receive the
Japanese manufacturer. Which of the financial profits and non-monetary
following statement is not correct ? rewards are called
(A) A convenience sample of cars (A) Suppliers
parked near the gate may give a (B) Employees
biased estimate of the proportion (C) Competitors
of cars which are from a (D) Entrepreneurs
Japanese Manufacturer.
43. A Marketing database is built as an aid to
(B) Different investigators may get
(A) Market research
different estimates for the
(B) Product-mix expansion
proportion of cars that are red.
(C) Reducing cost of production
(C) The sample proportion of cars (D) Price hike
that are red is an unbiased
estimate of the population 44. The model that applies to Economic
proportion if the sampling Order Quantity for Inventory
method is simple random. Management, was proposed to be
(D) A sample of 100 cars in a applied to Cash Management by
convenience sample is always (A) Miller and Orr
better than a sample of 20 cars (B) William J. Baumol
from a proper random sampling (C) William Sharpe
method. (D) David Durand

Paper-III 8 D-17-12
45. If a hypothesis is statistically significant, 50. Which Business unit generates substantial
then it is concluded that cash surpluses due to low industrial
(A) the observed result is probably growth rate and high market share ?
not due to chance. (A) Dog
(B) the observed result is probably a (B) Cash Cow
chance result. (C) Question Mark
(C) the observed result cannot
(D) Star
possibly be due to chance.
(D) the null hypothesis of no
relationship is probably true. 51. In which stage of New product
development process, the product and
marketing programs are tested in
46. In which stage of product life cycle,
realistic market settings ?
the company takes decision whether to
maintain, harvest or drop the product ? (A) Concept Development and
(A) Introduction Testing
(B) Growth (B) Idea Screening
(C) Maturity (C) Test Marketing
(D) Decline (D) Commercialization

47. Recruitment is concerned with 52. The problem of industrial discipline

(A) Selecting the right candidate was debated by the Indian Labour
(B) Developing a pool of job Conference (ILC) held in India in
candidates (A) 1948
(C) Getting applications (B) 1952
(D) None of the above (C) 1957
(D) 1960
48. In production management,
dispatching includes :
53. The Branding strategy which uses a
(A) Giving work to machines and different brand name for each product
places. is known as
(B) Providing materials, tools, etc. to
(A) Overall Family Branding
works.
(C) Issuing appropriate orders for (B) Line Family Branding
production process. (C) Individual Branding
(D) All of the above. (D) Brand Extension

49. Which of the following is the internal 54. The two factor theory was propounded
sources of recruitment ? by
(A) Advertisement (A) Frederick Herzberg
(B) Selection (B) A.H. Maslow
(C) Both (A) and (B) (C) Mc Gregor
(D) None of the above
(D) Elton Mayo
Paper-III 10 D-17-12
55. Match the following 58. Benefits provided for temporary and
a. Percentage change in 1. Perfect permanent disability disfigurement,
quantity demanded to compe- medical expenses and medical
percentage change in tition rehabilitation is referred to as
price. (A) Fringe benefits
b. Percentage change in 2. Market (B) Financial incentives
demand to percentage demand (C) Workers’ compensation
change in the price of (D) None of the above
some other 59. Today’s organizations are working on
commodity. the principle of
c. Homogeneous 3. Price (A) Production-orientation
products elasticity (B) Product-orientation
d. Relationship between 4. Cross (C) Selling-orientation
quantity of the elasticity (D) consumer-orientation
product demanded 60. Identify the correct sequence of control
and factors that
(A) Feedback o Evaluation o
cycle :
affect the quantity.
Codes : Adjustment o Action.
a b c d (B) Action o Evaluation o
Feedback o Adjustment.
o o
(A) 3 4 1 2

Evaluation o Adjustment.
(B) 4 3 1 2 (C) Action Feedback

(D) Adjustment o Action o

(C) 3 2 1 4

Feedback o Evaluation.
(D) 4 2 1 3

61. Negotiation of labour contract by

56. F.W. Taylor has done the following
Union and Management is referred to
studies for improving the production
as
process :
(A) Industrial Relations
(A) Time Study, Fatigue Study and (B) Trade Union
Fatal Study. (C) Consumerism
(B) Time Study, Motion Study and (D) Collective Bargaining
Fatal Study. 62. Goods used by an organization in
(C) Time Study, Motion Study and producing other goods is called
Fatigue Study. (A) Consumer goods
(D) Time Study, Motivation Study (B) Industrial goods
and Fatigue Study. (C) Speciality goods
(D) None of the above
57. Which one is not the overseas market 63. The outside third party who is brought
entry strategy followed by into settle a dispute, and he or she has
Multinational Corporations ? the authority to make a decision is
(A) Franchise called
(A) Government
(B) Collaborations
(B) An Arbitrator
(C) Joint venture (C) Union
(D) Strategic planning (D) Legal Expert
Paper-III 12 D-17-12
64. Marketing information system gathers 69. Which one of the following is not a
information from internal sources like basic element in the Strategic
marketing intelligence and marketing Management ?
research to help the manager in (A) Environmental scanning
(A) Assessing the information needs. (B) Strategy formulation
(B) Developing the needed (C) Strategy implementation
information. (D) Functional strategy
(C) Distributing the information. 70. A written statement of the human
(D) All of the above. qualification, education and experience
needed to perform a job is referred to
65. In which year WTO came into being ? as
(A) 1980 (A) Job enrichment
(B) 2000 (B) Job specification
(C) 2006 (C) Job design
(D) 1995 (D) Job description
71. Changes in the population
66. One-level channel consists of characteristics such as age, gender,
(A) Producer-consumer marital status, income and education
(B) Producer-dealer-consumer are the examples of
(C) Producer-dealer-retailer- (A) Demographic characteristics
consumer (B) Cultural characteristics
(D) Producer-dealer-wholesaler- (C) Geographic characteristics
retailer-consumer (D) None of the above
72. ESI Act applies to
67. Batch production is appropriately
(A) Railways and Mines Industries
applicable to
(B) Seasonal Factory Workers
(A) Medicine production (C) Cement Industries
(B) Sugar production (D) None of the above
(C) Petroleum products
(D) Agriculture produce 73. Porter and Lawler model is related to
(A) Perception (B) Attitudes
(C) Motivation (D) Leadership
68. Match the following :
a. Harry Markowitz 1. Dividend 74. Which of the following is the best
Theory technique to manage the existing
b. David Durand 2. CAPM products ?
c. Dow 3. Capital (A) Ansoff matrix
structure (B) BCG matrix
d. M.J. Gordon 4. Technical (C) Mc Kinsey 7s Framework
Analysis (D) Five forces of competition
Code : 75. One of the acceptable methods for
a b c d obtaining feedback of training is called
(A) 4 3 2 1 (A) Structured Interview
(B) 2 3 4 1 (B) Performance After Training
(C) 2 1 3 4 (C) Improvement After Training
(D) 3 2 4 1 (D) Employee Turnover Rate
Paper-III 14 D-17-12
 MANAGEMENT
PAPER – III
Note : This paper contains seventy five (75) objective type questions of two (2) marks each. All
questions are compulsory.
1. From the following identify one 5. Match the items given in Column A
which is not a collusive oligopoly with the suitable items given in
model Column B :
(A) Cartels Column A Column B
(B) Edgeworth Model a. Maximisation of i. Equilibrium
society’s welfare
(C) Price Leadership even when
(D) Market Share Model individuals behave
selfishly to further
2. The rate at which the consumer can their own
trade one good for another is termed economic status.
as marginal rate of substitution in b. State of balance ii. Non-Satiation
(A) exchange from which there
(B) consumption is no tendency to
(C) production change.
(D) the distribution c. Best possible state iii. The invisible
within a given set hand
3. If demand equation is given by of constraints.
D = 1000 – P and the supply equation d. A situation iv. Optimisation
is given by S = 100 + 4P, price will wherein a
customer always
be prefer more of
(A) 160 goods to less of
(B) 180 goods.
(C) 170 Codes :
(D) 200 a b c d
(A) iv i iii ii
4. Arrange the following steps, (B) ii i iv iii
involved in the estimation of a (C) iii i iv ii
demand function using econometric (D) iv i ii iii
analysis, in the proper order
(i) Collection of data 6. Which one is not the technique of
(ii) Estimating the parameters of personality measurement ?
the model (A) Projective Technique
(B) Word Association Technique
(iii) Mathematical specification of
(C) Raven’s Progressive Matrices
the relationship among the
(D) Sentence Completion Technique
variables
(iv) Using the estimates to arrive at 7. Drive is explained by
the estimates of variables. (A) any strong stimulus that impels
(v) Identification of variables action.
Codes : (B) any object, event exiting in the
(A) (v), (i), (iii), (iv), (ii) environment.
(B) (i), (ii), (iii), (iv), (v) (C) anything that increases the
repetition of behaviour.
(C) (i), (ii), (iv), (iii), (v)
(D) none of the above
(D) (v), (i), (iii), (ii), (iv)
Paper-III 2 J-17-13
8. Consider the following phases of 10. Match the theories given in
Organisational Development (OD) : Column – I with the explanations in
a. Entry into the organisation Column – II :
b. Development of internal Column – I Column – II
resources a. Super ego 1. Individual
c. Problem identification moves from a
d. Specific intervention state of passivity
e. Building a collaborative culture as a child to
Rearrange the above stages in an state of activity
as an adult.
(A) a o c o b o d o e
orderly sequence :
b. Closure 2. Social values
(B) a o b o c o d o e
and personal
(C) c o b o a o e o d
norms that serve

(D) a o c o d o e o b
as an ethical
constraint on
behaviour.
9. Match the following : c. Immaturity – 3. Perception of a
Explanation Term Maturity person about
a. The beliefs or 1. Attitude Theory how others are
ideas one has perceiving his
about an object qualities.
or situation d. Looking 4. People when
b. The feelings or 2. Cognitive glass-self faced with
emotions one component incomplete
has about an information tend
object or to fill gaps
situation themselves.
c. Psychological 3. Affective Codes :
discomfort component a b c d
experienced (A) 1 2 3 4
when attitudes (B) 1 2 4 3
and behaviour (C) 2 1 3 4
are inconsistent (D) 2 4 1 3
d. How one intends 4. Behavioural
to act or behave component 11. What is the procedure in which an
toward someone employer and a group of employees
or something agree to the conditions of work ?
e. Learned 5. Cognitive (A) Dispute settlement
predisposition dissonance (B) Collective bargaining
toward a given (C) Industrial democracy
object (D) None of the above
Codes : 12. Factor comparison method is used as
a b c d e a technique of
(A) 1 2 3 4 5 (A) Job Analysis
(B) 2 3 5 4 1 (B) Job Evaluation
(C) 3 2 4 5 1 (C) Job Design
(D) 5 3 4 2 1 (D) None of the above
Paper-III 4 J-17-13
13. Succession planning can best be 17. Match the following :
explained by a. Attrition 1. Separation that
(A) Activity in which managers occurs when an
make decisions regarding the employer
advancement potential of
subordinates. decides to
(B) Activity that focuses on preparing terminate its
people to fill executive positions. relationship with
(C) A chart showing the possible an employee due
directions and career opportunities to economic
available in an organization. necessity.
(D) None of the above b. Down sizing 2. A company’s
14. Employees join union when they strategy of
(A) are dissatisfied with certain separation of
aspects of their jobs. employees to
(B) feel that they lack influence reduce the scale
with management to make the (size) and scope
needed change. of its business in
(C) feel unionization as a solution order to improve
to their problems. the company’s
(D) all the above
financial
15. Identify the correct sequence of the performance.
steps of grievance procedure required c. Involuntary 3. The process of
to be followed for the grievance handling separation reorganizing a
1. Departmental Manager
2. Immediate Supervisor company’s
3. Arbitration employees to
4. Trade Union’s intervention improve their
(A) 1, 2, 3 & 4 (B) 2, 3, 1 & 4 efficiency.
(C) 2, 1, 4 & 3 (D) 2, 4, 1 & 3 d. Right sizing 4. An employment
16. Match the following : policy designed
a. Job 1. A company to reduce the
posting maintained record company’s
system of employee’s workforce by
abilities, skills, not refilling job
knowledge and vacancies that
education. are created by
b. Career 2. A chart showing the turnover.
path possible direction Codes :
and opportunities a b c d
available to an
employee in the (A) 1 2 3 4
organization. (B) 4 2 1 3
c. Skills 3. A collection of career (C) 3 2 4 1
inventory development (D) 2 1 3 4
materials.
d. Career 4. A system in which 18. Which one of the following is the
Resource an organization advantage of team-based pay for
Centre announces job performance plans ?
openings. (A) Financial incentives can shape
Codes : a person’s goals.
a b c d
(A) 1 2 3 4 (B) Can help the firm to attain
(B) 2 3 4 1 individual equity.
(C) 4 2 1 3 (C) Fit an individualistic culture.
(D) 3 4 1 2 (D) Aids performance measurement.
Paper-III 6 J-17-13
19. Which one of the following is not 25. Margin of Safety ratio can be
Human Resource requirement calculated as
estimation method ?
u 100
Actual Sales – Breakeven Sales
(A) Regression Analysis (A) Actual Sales
(B) Ratio Analysis
u 100
(C) Top-down Approach Actual Sales – Break-even Sales
(B) Break even Sales
(D) All of the above
u 100
Break even Sales – Actual Sales
20. Which of the following form for (C) Actual Sales

improving workers participation in
management was included in the
recommendations of the Justice
Rajinder Sachar Committee report ?
(A) Works Committee
(B) Joint Management Council
(C) Workers’ representation in the
Board of Directors and
allotment of equity to workers
(D) Unit Council
21. JK Ltd. has earned 8% return on total
assets of ` 50,00,000 and has a Net
Profit Ratio of 5%. Find out the sales
of the firm.
(A) ` 4,00,000 (B) ` 2,80,000
(C) ` 80,00,000 (D) ` 83,33,333
22. Net Present Value Method and
Internal Rate of Return Method of
capital budgeting techniques may give
conflicting accept-reject decision due to
1. Disparity in initial investment
2. Disparity in timing of cash flow
3. Disparity in the life of the project
(A) 1 only
(B) 2 only
(C) 1 and 2 only
(D) 1, 2 and 3
23. Beta B of risk-free investment is
(A) – 1
(B) 0
(C) 1
(D) None of these
24. A firm’s inventory planning period is
one year. Its inventory requirement
for this period is 400 units. Assume
that its acquisition costs are ` 50 per
order. The carrying costs are
expected to be ` 1 per unit per year
for an item. What is EOQ ?
(A) 800 units
(B) 200 units
(C) 100 units
(D) None of the above
Paper-III
u 100
Break even Sales – Actual Sales
(D) Break even Sales
26. This cost arises out of the failure of
the customers to meet their
obligations when payment on credit
sales becomes due after the expiry of
the credit period.
(A) Default Cost
(B) Delinquency Cost
(C) Capital Cost
(D) Collection Cost
27. The following data are available from
the annual report of a company :
Current Assets ` 4,80,000; Current
Liabilities ` 3,00,000; Average total
assets ` 20,00,000; Operating income
` 2,40,000; Average total equity
` 8,00,000; Net income ` 80,000.
Which of the following statement is
correct ?
(A) Return on equity exceeds the
return on assets.
(B) Working capital is ` 12,00,000.
(C) Current Ratio is 0.625 to 1.
(D) None of the above.
28. The annual credit sales of a firm is
` 12,80,000 and the debtors amount
to ` 1,60,000. The debtors turnover
and average collection period are
_____.
(A) 4 & 90 days
(B) 8 & 45 days
(C) 6 & 60 days
(D) 8 & 60 days
8 J-17-13
29. The formula used for valuation of 32. In multi level channel arrangement
equity shares with assumption of Jobber stands in between ________.
normal growth in dividend is (A) manufacturer and wholesaler
D0 D1 (B) wholesaler and retailer
(A) Ke – g (B) Ke – g (C) retailer and consumer
(D) none of these
E0 E1
(C) Ke – g (D) Ke – g
33. A company following a strategy of
advertising the product for a period
30. Match the following : followed by a period with no
List – I List – II advertising is called
(Statement) (Term) (A) Concentration
I. A combination of two 1. Strap (B) Flighting
puts and one call with (C) Pulsing
the same exercise (D) Continuity
price and expiration
date. 34. Franchise organisation is an example
of ______ vertical marketing system.
II. A combination of one 2. Strip
(A) Corporate
put and two calls with (B) Administered
the same exercise (C) Contractual
price and expiration (D) Co-operative
date.
III. A portfolio of put 3. Strangle 35. Three statements are given below :
and call with the same Statement – I : Introducing an
expiration date but existing product in
with different exercise the new market is
price. called market
IV. A position where the 4. Naked development.
option writer does not option Statement – II : Introducing a new
hold a share in his product in the
portfolio that has a existing market is
counter balancing called
effect. diversification.
Codes : Statement – III : Introducing an
existing product in
I II III IV
the existing market
(A) 2 1 3 4
is called market
(B) 1 2 3 4 penetration.
(C) 2 1 4 3 Choose the correct option about the
(D) 1 3 2 4 statements from among the options
given below :
31. “Motivational research is a form of (A) Statements I & II are only
market research that attempts to correct.
discover the deeper reasons why (B) Statements I & III are only
people buy.” Who said it ? correct.
(A) Manson and Rath (C) Statements II & III are only
(B) Stanton correct.
(C) Still and Scweff (D) Statements I, II & III are
(D) Philip Kotler correct.
Paper-III 10 J-17-13
36. Two statements are given below 39. Match Item – I with Item – II :
relating to sales promotion : Item – I Item – II
Statement – I : Sweep Stakes calls
(Type of (Prime
for consumers to
submit an entry to Control) Responsibility)
be examined by a I. Annual 1. Line and Staff
panel of judges Plan Management or
who will select the Control Marketing
best entry. Controller
Statement – II : A contest asks II. Profitability 2. Top/Middle
consumers to Control Management
submit their names III. Efficiency 3. Marketing
in a drawing.
Control Controller
Choose the most appropriate answer
from among the options given IV. Strategic 4. Top
relating to the statements : Control Management/
(A) Statement – I is correct and II Marketing
is wrong. Auditor
(B) Statement – II is correct and I Codes :
is wrong. I II III IV
(C) Both statements are wrong.
(A) 2 3 1 4
(D) Both statements are correct.
(B) 1 3 2 4
37. Arrange the following steps in the (C) 2 1 4 3
perceptional process in the sequential (D) 2 3 4 1
order :
1. Interpretation 40. Which of the following statement is
2. Memory
true ?
3. Exposure
4. Attention (A) A brand name is a part of brand
(A) 4, 3, 1, 2 (B) 3, 2, 1, 4 which can be vocalised.
(C) 3, 4, 1, 2 (D) 4, 3, 2, 1 (B) A brand is usually composed of
a name and mark of a product.
38. Match the following : (C) Brand means a name, term and
List – I List – II symbol or a mix thereof used to
(Motivational (Elements) identify the product of a firm
Models) and to distinguish.
1. Economic a. Attractive
(D) All of the above
Model Design
2. Learning Model b. Inspiration
3. Psychoanalytic c. Sex 41. The term inventory includes
Model (A) the stock of raw materials only.
4. Organisational d. Cost of (B) the stock of finished goods
Model Product only.
Codes :
1 2 3 4 (C) the stock of raw materials and
(A) a b c d goods required for production
(B) b c d a in a factory or finished goods
(C) c d a b for sales.
(D) b d c a (D) none of the above.
Paper-III 12 J-17-13
42. Statement – I : Operations research 45. Match the following :
seeks to replace List – I List – II
intuitive decision a. Any physically i. Network
making for large identifiable part
complex problems of a project
with an approach b. The terminal ii. Event
that identifies the point of an
optimal or best activity
alternative through c. The longest iii. Activity
analysis. chain in the
Statement – II : Operations Managers Network
have adopted the d. Logically and iv. Critical path
approaches and
techniques of sequentially
operations research connected
to improve their arrows and
decision-making. nodes
(A) Both statements I & II are true. Codes :
(B) Both statements I & II are a b c d
false. (A) i ii iii iv
(C) Statement I is true but (B) iii ii iv i
statement II is false. (C) ii iv i iii
(D) Statement II is true but (D) iv i ii iii
statement I is false.
46. For nominal data, the only measure
43. ________ is used for analysing of central tendency, that can be
capacity planning decisions. applied is
(A) Break-even Analysis (A) Arithmetic mean
(B) Present-value Analysis (B) Harmonic mean
(C) Simulation and Waiting Line (C) Median
Analysis (D) Mode
(D) All the above
47. Tukey Kramer Test is applied when
44. Match the following : (A) there is significant difference
List – I List – II between means of two groups.
a. To co-ordinate work i. EOQ (B) there is significant difference
centre schedules by between means of three groups.
showing the progress (C) there is no significant
of each job
b. The goal of continuous ii. Queue difference between means of
improvement in every length two groups.
phase of (D) there is no significant
manufacturing difference between the means
c. Optimal quantity iii. Gantt of three groups.
asked to supply that Chart
minimises total annual 48. The steps taken to solve a problem
stocking costs are given below. Arrange them in the
d. End product or service iv. Kaizen correct order :
of a conversion system (i) Analyse (ii) Test
e. The number of arrivals v. Output (iii) Implement (iv) Evaluate
waiting to be serviced (v) Document (vi) Design
Codes : (vii) Develop
a b c d e Codes :
(A) iii iv i v ii (A) (i), (vi), (vii), (ii), (v), (iii), (iv)
(B) i ii iii iv v (B) (i), (ii), (iii), (iv), (v), (vi), (vii)
(C) v iv ii iii i (C) (i), (vi), (iii), (ii), (iv), (v), (vii)
(D) ii iii iv i v (D) (i), (vi), (vii), (iii), (ii), (iv), (v)
Paper-III 14 J-17-13
49. Arrange the steps given below in the 52. Match the following :
proper order in the process of
selection of samples : Table – I Table – II
(i) Determining sample size a. Horizontal i. New product
(ii) Specifying sampling method diversification in new market
(iii) Selecting samples b. Vertical ii. New product,
(iv) Defining the population
(v) Developing sample frame diversification current market
Codes : c. Concentric iii. Movefirms
(A) (iv), (i), (v), (ii), (iii) diversification suppliers or
(B) (iv), (v), (ii), (i), (iii) customers
(C) (iv), (v), (i), (ii), (iii) business
(D) (iv), (i), (v), (iii), (ii)
50. Match the following : d. Conglomerate iv. New product
Column – A Column – B diversification closely related
a. Device that i. Modem to current
connects two product in
dissimilar new market
communication Codes :
networks.
b. Device that ii. Repeater a b c d
connects two (A) i ii iii iv
similar networks.
c. Device used to iii. Bridge (B) iii iv ii i
boost the strength (C) ii iii i iv
of a signal. (D) ii iii iv i
d. Device for iv. Gateway
performing signal
transformation 53. Goals-driven planning is best
between terminal explained by
devices and
communication (A) planning to overcome critical
circuits. issues that thwart attempts to
Codes : be more customer-focused.
a b c d (B) hard to come up with good
(A) iii iv ii i indicators and gather reliable
(B) iv iii ii i
(C) ii iii iv i base line data.
(D) iv iii i ii (C) carefully managed to focus on
51. In reference Part-A and Part-B, solutions.
which statement is correct ? (D) none of the above.
Part ‘A’ : Strategy is the action
plan for achieving
organisational objectives. 54. Which organisational structure is
Part ‘B’ : It is the bridge between considered most complex ?
the present and desired
future. (A) Functional structure
Statement : (B) Divisional structure
(A) Both Part ‘A’ and ‘B’ are correct. (C) Strategic Business Unit (SBU)
(B) Both Part ‘A’ and ‘B’ are structure
incorrect.
(C) Part ‘A’ is only correct. (D) Matrix structure
(D) Part ‘B’ is only correct.
Paper-III 16 J-17-13
55. Statement – I :A nation’s 58. The main activities of SISI (Small
competiveness Industries Services Institutes) are
depends on the (A) Assistance/Consultancy to
capacity of its prospective Entrepreneurs
industry to innovate (B) Assistance/Consultancy to
and upgrade. exiting units
Statement – II : Companies gain (C) (A) and (B)
advantage against
(D) Assistance/Consultancy and
the world’s best
incentives to existing units
competitors
because of 59. Five steps of small business
pressure and development shall occur in the order of
challenge.
(A) Resource Maturity – Existence
(A) Both statements I and II are
correct. – Success – Survival – Takeoff
(B) Both statements I and II are (B) Success – Existence – Survival
incorrect. – Takeoff – Resource Maturity
(C) Statement I is correct, but (C) Existence – Survival – Success
statement II is incorrect. – Takeoff – Resource Maturity
(D) Statement I is incorrect, but (D) Existence – Success – Survival
statement II is correct. – Resource Maturity – Takeoff

56. Brain storming is a group creativity 60. Which is not a socio-economic

exercise designed to come up with rationale for promoting SSI in India ?
_______. (A) Export Promotion
(A) number of solutions to a single (B) Employment Generation
problem (C) Offering competition to large
(B) two solutions to a single scale industry
problem (D) Labour intensive
(C) three solutions to two problems
(D) many solutions to many 61. A set of processes, customs, policies,
problems laws and institutions, that affects the
way in which a corporation is
57. Four core themes of innovation are directed, administered or controlled
(A) recognising the opportunity, in order to facilitate the interest of
finding the resources, stake-holders is known as
developing the venture and (A) Corporate Social Responsibility
creating value. (B) Corporate Governance
(B) finding the resources, (C) Corporate Sustainability
developing the venture, (D) Environmental Ethics
recognizing the opportunity
and creating value. 62. “We must maintain in good order the
(C) developing the venture, property, we are privileged to use,
creating value, recognising the protecting the environment and
opportunity and finding the
natural resources” is known as
resources.
(A) Protecting business environment
(D) creating the value, recognising
the opportunity, developing the (B) Social responsibility of business
venture and finding the (C) Maintaining good property
resources. (D) Protect natural resources
Paper-III 18 J-17-13
63. Assertion (A) : The Securities and 66. The member countries of WTO have
Exchange Board moved to “Product Patent Regime”
under
of India has made (A) TRIMs (B) TRIPs
Listing Agreement (C) SAPTA (D) BOP
tough to ensure
good corporate 67. Which of the following is not an
governance among element of logistics system ?
(A) Nature of product
the companies (B) Availability of infrastructure
listed on Indian (C) Quality of product
Stock Exchange. (D) Government policies
Reasoning (R) : In the absence of
Clause 49, the 68. €/$ exchange rate goes from
€ 1 = $0.93 to €1 = $0.99. This
listed companies indicates
may ignore the (A) Dollar appreciation of 6.45%
interest of (B) Dollar depreciation of 6.45%
stakeholders. (C) Dollar appreciation of 6.06%
(D) Dollar depreciation of 6.06%
(A) (A) and (R) both are correct 69. Statement I : Fixed exchange
and (R) is right explanation of rate system is
(A). disadvantageous.
(B) (A) is correct, but (R) is not the Statement II : The government
correct explanation of (A). can alter the
exchange rates.
(C) (R) is correct, but (A) is not the (A) Statement I is correct, but
right assertion. statement II is incorrect.
(D) Both (A) and (R) are incorrect. (B) Statement I is incorrect, but
statement II is correct.
64. A system of control is implemented (C) Statement I and statement II
both are correct.
to assist in aligning the incentives of (D) Statement I and statement II
managers with those of shareholder both are incorrect.
is known as
(A) Corporate Governance 70. Which of these is not a form of pre-
(B) Government Control shipment finance ?
(A) Advance against export bills
(C) Director of Company sent on collection.
(D) Shareholders (B) Advances against incentives
receivable from Government.
65. Which of the following combination (C) Packing credit.
is suitably attributed to the statement (D) Pre-shipment credit in foreign
currency.
that stakeholders should expect fair
return on their investment ? 71. Under which of the following
(i) Optimization of Profit exchange rate systems, exchange
(ii) Social Responsibility of Business rates are either held constant or
(iii) Competition Theory of Business allowed to fluctuate only within very
(iv) Walter’s Theory narrow boundaries ?
(A) Fixed exchange rate system.
(A) (i), (ii) and (iii) (B) Freely floating exchange rate
(B) (ii), (iii) and (iv) system.
(C) Only (i) and (ii) (C) Managed float exchange rate
(D) Only (iii) and (iv) system.
(D) Pegged exchange rate system.
Paper-III 20 J-17-13
72. The degree to which, a firm’s present 75. Match the following :
value of future cash flows can be List – I List – II
influenced by exchange rate
(Statements) (Terms)
fluctuations is referred to as
(A) Economic exposure I. Countries which i. Customs
follow a unified Union
(B) Transaction exposure
informal tariff
(C) Translation exposure
but different
(D) Accounting exposure
external tariff.
II. Countries which ii. Common
73. Bid/ask spread of a foreign currency
follow a unified market
can be computed by which of the
internal and
following formulae ?
external tariff
Bid Rate – Ask Rate
(A) Ask Rate system.
Ask Rate – Bid Rate III. Countries which iii. Free trade
(B) Ask Rate follow a unified area
internal and
Bid Rate – Ask Rate
(C) Bid Rate external tariff
and allows free
Ask Rate – Bid Rate
(D) movement of
Bid Rate
factors of
74. Match the items given in Column – I production.
with most appropriate options given IV. Countries which iv. Economic
in Column – II : follow a unified union
Column – I Column – II internal and
a. Conditions i. Patents external tariff
imposed by a and allows free
Government in movement of
respect of factors of
foreign production plus
investment
having common
b. Information ii. Intellectual economic and
with Property
monitoring
commercial Right
policy and
value
common
c. Monopoly right iii. TRIMs
granted by law currency.
Codes : Codes :
a b c I II III IV
(A) iii i ii (A) iii i iv ii
(B) iii ii i (B) iii ii iv i
(C) ii iii i (C) iii ii i iv
(D) ii i iii (D) iii i ii iv

Paper-III 22 J-17-13
 MANAGEMENT
Paper – III
Note : This paper contains seventy five (75) objective type questions of two (2) marks each. All
questions are compulsory.

1. The elasticity of demand is greater 4. Match the following :

than unity, when List – I List – II
(A) Percentage change in demand (a) The (i) Market in
is equal to the percentage producers equilibrium
change in price.
will offer
(B) Percentage change in demand
more of a
is more than the percentage
change in price. product at a
(C) Percentage change in demand higher price.
is less than the percentage (b) The quantum (ii) Law of
change in price. that producers supply
(D) There is change in price. want to sell is
equal to the
2. GDP includes which of the quantum that
following measures ?
consumers
(A) The size of a population that
want to buy.
must share a given output
within one year. (c) The (iii) Co-efficient
(B) The negative externalities of sensitivity of of price
the production process of a consumers to elasticity of
nation within one year. price changes. demand.
(C) The total monetary value of all
(d) Percentage (iv) Price
final goods and services
change in elasticity of
produced within a nation
within one year. quantity demand
(D) The total monetary value of demanded to
goods and services including percentage
barter transactions within a change in
nation in one year. price.
Codes :
3. If the equation y = 5 + 0.6x was
graphed, the (a) (b) (c) (d)
(A) Slope would be – 5 (A) (ii) (i) (iii) (iv)
(B) Vertical intercept would be (B) (iv) (i) (ii) (iii)
+ 0.6
(C) Slope would be + 5 (C) (ii) (iv) (iii) (i)
(D) Slope would be + 0.6 (D) (ii) (i) (iv) (iii)
Paper-III 2 S-17-13
5. Statement I : The slope of an 9. Match the following :
indifference curve is the OD Interventions Proposed by
Marginal Rate of Substitution Grouping Term
in the consumption (MRSc), a. OD Cube 1. French and Bell
which is increasing. b. Consul cube 2. Freneh and Bell
Statement II : The slope of the c. Intervention 3. Blake and
budget line is ratio of the prices families Mouton
of two goods and is the d. Four 4. Schmuck and
Marginal Rate of Substitution quadrants Miles
in exchange (MRSe)
(A) Statement I and II are correct. Codes :
(B) Statement I is correct, but II is a b c d
incorrect. (A) 4 3 2 1
(C) Statements I and II are (B) 3 4 2 1
incorrect. (C) 2 1 3 4
(D) Statement I is not correct, but II (D) 1 2 4 3
is correct. 10. Match the following :
6. Forming a fixed opinion or attitude a. Stability 1. Number of
towards a single person or object is subordinates
termed as that report to
(A) Perceptual defense one supervisor.
(B) Stereo typing b. Strategy 2. The whole is
(C) The Halo effect greater than the
(D) The perceptual set sum of its parts.
c. Synergy 3. Plans for the
7. Which of the following best
allocation of
describes the theory X ?
firm’s scarce
(A) People are committed to their
resources to
responsibilities.
reach identified
(B) Motivation is a result of
goals in time.
rational behaviour towards
d. Span of 4. Employees
attaining goals.
control should not be
(C) The perceived relationship
moved
between a given level of efforts
frequently from
and an expected performance.
one job to
(D) None of the above.
another
8. Hawthorne experiments were Codes :
conduced at a b c d
(A) Hawthorne Electric Company (A) 4 3 2 1
(B) Western Electric Company (B) 3 4 1 2
(C) General Electric Company (C) 2 3 4 1
(D) Eastern Electric Company (D) 1 2 3 4
Paper-III 4 S-17-13
11. Role of Human Resource Manager is 15. An employee can be laid off when
(A) Advisory the organization has
(B) Mediator Role (A) Acquired labour more than the
(C) Representative Role required.
(D) All of the above (B) Purchased raw material more
than the immediate required.
12. Which statement is true ?
(C) Breakdown of machinery.
(A) Job analysis is a group of
positions, that are similar as to (D) All of the above.
kind and level of work.
(B) A promotion is the
16. Match the following :
advancement of an employee to
a better job better in terms of List – I List – II
greater responsibilities, more
(Items of HRM) (Features)
prestige or status, greater skill
and especially, increase rate of a. Human 1. Forecast man
pay or salary. Resource power needs
(C) A promotion is the vertical Planning based strategies
transfer of an employee. of the trend.
(D) All of the above b. Selection 2. Use the criteria
and measures
13. Job is defined as developed to
(A) Set of activities performed in match
the organization. individual skills
(B) Set of activities similar as to in the job
kind of work. requirements.
(C) Set of position similar as to
c. Advancement 3. Promotion.
nature and kind of work.
(D) None of these. d. Industrial 4. Amicable and
relations harmonious
14. The benefit of paraphrasing in working in the
Employee Appraisal is that it organization.
(A) Suggests interest and active Codes :
listening.
a b c d
(B) Clarify and convey to the rater
that you are listening actively. (A) 1 2 3 4
(C) Shows that you are trying to (B) 1 4 3 2
understand the emotional
(C) 3 1 4 2
aspect of the work place.
(D) All of the above. (D) 4 1 3 2

Paper-III 6 S-17-13
17. Which one of the following is a 20. Match the following :
disadvantage of having expatriate a. Balancing 1. The perceived
employees to staff international Equity fairness of the
subsidiaries ? pay structure
(A) Brings cultural similarities with within a firm.
parent company. b. Internal 2. The perceived
(B) Gives employees a Equity fairness in pay
multinational orientation. relative to what
(C) Attempts to establish a foreign other employers
culture to the company. are paying for
(D) Provides broader global the same type
perspective. of labour.
c. Individual 3. The perceived
18. Whistle Blowing is the situation Equity fairness in
wherein an employee establishment
(A) Causes indiscipline in the of internal and
organization. external pay
(B) Discloses other employees’ equity.
illegal immoral or illegitimate d. External 4. The perceived
activities. Equity fairness of
(C) Discloses the employer’s individual pay
illegal immoral or illegitimate decisions.
activities. Codes :
(D) All of the above. a b c d
(A) 3 4 2 1
19. Distributive bargaining may be (B) 1 2 3 4
explained as (C) 2 4 1 3
(A) Bargaining wherein both (D) 4 1 3 2
parties are willing to negotiate
over wages, hours and 21. Which of the below features is not
conditions of employment. wealth maximization objective of
(B) Bargaining that focuses on Financial Management ?
convincing the other party that (A) Considers both quantity and
the cost of disagreeing with the quality dimensions of benefits.
proposed terms would be very (B) Based on the concept of cash
high. flows generated by the decision
(C) Bargaining that focuses on rather than accounting profit.
convincing the other party that (C) Decision should be oriented to
the benefits of agreeing with the maximization of profits.
the proposed terms would be (D) Focus is on the value to the
very high. owners or suppliers of equity
(D) None of the above. capital.
Paper-III 8 S-17-13
22. Financial Break even Level of EBIT 27. Vertical merger represents merger of
is one at which firms
(A) EPS is one (A) engaged in the same line of
(B) EPS is infinite business.
(C) EPS is zero (B) at different stages of
(D) EPS is negative production in an industry.
(C) engaged in unrelated line of
activities.
23. Which of the following is not
considered by Miller-Orr Model ? (D) All of the above.
(A) Variability in cash requirement
28. A high debtors turnover ratio
(B) Cost of transaction
indicates
(C) Holding cash
(A) low amount tied upon debtors
(D) Total annual requirement of (B) increase in sales turnover
cash (C) efficient conversion of debtors
into cash
24. If the minimum stock level and (D) (A) & (C)
average stock level of material A are
4000 and 9000 units respectively, 29. Match the following :
what is the Reorder quantity ? List – I List – II
(A) 8000 units (B) 10,000 units (Statement) (Term)
(C) 11,000 units (D) 9,000 units I. Independent 1. Fiat
floating exchange money
25. According to Lintner Model, factors rate.
affecting dividend of current year are II. Exchange rate 2. Clean
(A) DPS of previous year, EPS, depending entirely float
target pay-out ratio and on market forces.
adjustment rate. III. Floating exchange 3. Managed
(B) EBIT, interest rate and rate regime where float
retention ratio. the monetary
(C) P/E ratio, retention ratio and authorities interfere
pay-out ratio. in the foreign
(D) E/P ratio, pay-out ratio and rate exchange market
of interest on it. for stabilizing
exchange rate.
IV. Non convertible 4. Free
26. Given the sales volume, which of the
paper currency. float
following would lead to an increase
Codes :
in contribution margin ?
I II III IV
(A) Variable cost remains same.
(A) 2 4 3 1
(B) Variable cost per unit decreases.
(B) 4 3 1 2
(C) Variable cost per unit increases. (C) 1 3 4 2
(D) Fixed cost increase. (D) 2 1 3 4
Paper-III 10 S-17-13
30. Projected cash flows change with 33. Delphi method of estimating future
changes in projected demand, price, demand for a product or service is
cost of production, cost of capital, etc. associated with
All these changes are accommodated (A) Past sales analysis
in a random manner by (B) Expert opinion method

(A) Sensitivity Analysis (C) Market test method

(D) Composite of sales force
(B) Simulation Technique
opinion
(C) Decision - Tree

(D) None of the above 34. A method for deriving the utility
values that consumers attach to
varying levels of a product attribute
31. When a firm has diversified in is called
unrelated products, it is called (A) product analysis
(B) conjunctive analysis
(A) Scramble diversification
(C) conjoint analysis
(B) Related diversification (D) market price analysis
(C) Product mix

(D) Product line simplification
32. Which of the following condition is
true about determinants and strengths
of positioning strategy ?
(A) There should be competition
warranting positioning.
(B) The market segment to be
served should be sizeable and
profitable.
(C) The market segment should be
able to effectively receive
communication messages
transmitted by the company.
(D) All of these.
Paper-III
35. Two statements are given below :
Statement I : Opinion leaders who
provide product related
information to the buyer and
assist him or her in buying is
called market mover.
Statement II : Opinion leaders who
understand the buyer’s personal
needs and use situations and
aid the buyer is called purchase
pal.
Choose the correct option about the
statements from the options given
below :
(A) Statement I alone is correct.
(B) Statement II alone is correct.
(C) Both statements are wrong.
(D) Both statements are correct.
12 S-17-13
36. Two statements are given below 38. Match the following :
relating to the consumer brand
List – I List – II
selection model.
Statement I : As per disjunctive
(Statements) (Terms)
decision rule consumers set a
minimum acceptable cut off
level for each attribute and a. Attacking the 1. Flank attack
choose the first alternative that weak spots of
meets the minimum standard
for all selected attributes. the competitor
Statement II : As per lexicographic
decision rule consumers choose b. Avoiding the 2. Frontal
the best brand on the basis of
main attack
its perceived most important
attribute. competitor and
Choose the correct option about the
attacking easier
statements from the options given
below : ones.
(A) Statement I alone is correct.
(B) Statement II alone is correct. c. Attacking the 3. Encirclement
(C) Both statements are correct. leader on several attack
(D) Both statements are wrong.
areas.

37. Arrange the following stages in the d. Attacking the 4. By Pass

industrial buying process in the
sequential order : leader on its attack
1. General need description
strong area.
2. Supplier search
3. Problem recognition Codes :
4. Performance review
5. Order route specification a b c d
6. Product specification
(A) 1 4 3 2
7. Proposal solicitation
8. Supplier selection
(B) 1 3 2 4
(A) 3-1-2-6-7-8-5-4
(B) 3-2-1-7-6-5-8-4 (C) 2 3 1 4
(C) 3-1-6-2-7-5-8-4
(D) 3-1-6-2-7-8-5-4 (D) 3 1 2 4

Paper-III 14 S-17-13
39. Match the following : 40. Which one of the three basic
List – I List – II approaches used customarily
explaining the Marketing System ?
(Statements) (Terms)
(A) Commodity, institutions and
a. A market 1. Pure functional approach.
situation in monopoly (B) Commodity, functional risks,
which many management approach.
competitors
(C) Product, service mix,
offering
functional and institutional
undifferentiated
approach.
products or
(D) None of the above.
services.
b. A market 2. Oligopoly 41. Statement I : One of the key factors
situation in impacting on Production
which many Managers is that the country’s
competitors borders no longer provide
offering protection from foreign imports
differentiated due to globalization.
products or
Statement II : To succeed in global
services.
competition, Production
c. A market 3. Mono- Management of Companies
situation in polistic must make a commitment to
which a small competition innovate products and services
number of large with high quality at low prices.
firms offering (A) Both the statements are
differentiated incorrect.
and standardized (B) Statement I is correct, but II is
products or incorrect.
services.
(C) Statement I is incorrect, but II
d. A market 4. Pure is correct.
situation in competition (D) Both statements are correct.
which only one
firm provides a 42. Positioning the production system
certain products means
or services.
(A) Selecting the type of product
Codes : design.
a b c d (B) Selecting the type of
(A) 4 3 1 2 production processing system.
(C) Selecting the type of finished
(B) 4 2 3 1
good inventory policy for each
(C) 4 3 2 1 product group.
(D) 3 4 2 1 (D) All of the above.
Paper-III 16 S-17-13
43. Which one is not a part of control 46. Variable which has a strong
charts for variables ? contingent effect on the independent-
–
(C) V-chart
(A) X-chart (B) R-chart dependent variable relationship is
(D) C-chart referred to as
44. Match the following :
(A) Extraneous variable
List – I List – II
a. Decision- (i) When the (B) Intervening variable
making under outcomes are
(C) Moderating variable
conditions of known but the
certainty. probabilities of (D) None of the above
outcomes are
not known.
b. Decision- (ii) When elements 47. Coefficient of determination (R2)
making under of decision indicates
conditions of problem are
risk. clear and also (A) percentage of variation in the
the outcomes dependent variable that can be
of different explained by independent
alternatives are
variable.
known.
c. Decision- (iii) When (B) Percentage of variation in the
making under outcomes dependent variable that cannot
conditions of probabilities
be explained by independent
uncertainty. are known.
Codes : variable.
a b c (C) percentage variation in the
(A) (i) (ii) (iii)
independent variable that can
(B) (ii) (iii) (i)
(C) (iii) (ii) (i) be explained by dependent
(D) (i) (iii) (ii) variable.
45. Edwards Deming, one of the Quality (D) Percentage variation in the
Gurus, introduced a concept of cycle
independent variable that
for continuous improvement of
quality. The cycle consists of cannot be explained by the
(i) Act (ii) Plan dependent variable.
(iii) Do (iv) Check

If D = 0.05 and E = 0.10, the power

The correct order of this cycle of
activities is 48.
(A) (i), (iii), (iv), (ii) of that hypothesis test is
(B) (ii), (iv), (iii), (i)
(C) (ii), (iii), (iv), (i) (A) 0.15 (B) 0.90
(D) (i), (ii), (iii), (iv) (C) 0.85 (D) 0.95
Paper-III 18 S-17-13
49. Match the following : 50. From the statements given below,
List – A List – B choose the correct answer.
(a) Connects a very (i) Topo- Statement I : One of the important
large number of logy aspects of IT enabled services
devices and
is value addition.
spans across a
dispersed Statement II : ERP and CRM are
geographical examples for IT enabled
location covering services.
many cities. Codes :
(b) Encrypted (ii) Ethernet
(A) Statements I and II are correct.
communication
tunnels with (B) Statement I is correct, but II is
access control incorrect.
and user (C) Statements I and II are
authentication incorrect.
(c) Physical or (iii) Wide
(D) Statement I is incorrect, but II
geometric Area
is correct.
arrangement of Network
the network
influenced by the 51. Statement 1 : The IE Matrix is
physical
similar to the BCG Matrix in that
connections of
both tools involve plotting
links and nodes.
organisation divisions in a schematic
(d) Local area (iv) Virtual
diagram.
network Private
technology that Network Statement 2 : The BCG Matrix
sends requires more information about the
communication divisions than the IE matrix.
through radio
(A) Statements 1 and 2 both are
frequency
correct.
signals.
Codes : (B) Statements 1 and 2 both are
incorrect.
(a) (b) (c) (d)
(A) (iii) (i) (iv) (ii) (C) Statement 1 is correct, but
(B) (iv) (iii) (i) (ii) statement 2 is incorrect.
(C) (iii) (iv) (ii) (i) (D) Statement 1 is incorrect, but
(D) (iii) (iv) (i) (ii) statement 2 is correct.
Paper-III 20 S-17-13
52. Match the following : 53. Statement 1 : SWOT involves
a. Individual 1. Interpretations specifying the objectives of the
within that third parties business venture or project and
(Psycho- make regarding identifying the internal and
logical) contractual external factors that are
favourable and unfavourable to
terms.
achieve that objective.
b. Group 2. Broad beliefs
Statement 2 : Setting the objectives
within and obligations
should be done after the SWOT
(Normative) associated with
analysis has been performed.
society’s
(A) Both the statements are correct.
culture.
(B) Statement 1 is correct, but
c. Individual 3. Beliefs that
statement 2 is incorrect.
outside individuals
(C) Statement 1 is incorrect, but
(implied) hold, regarding
statement 2 is correct.
promises made,
(D) Both the statements are
accepted and
incorrect.
relied on
between and
another 54. The three disciplines of WTO
themselves. agreements are

d. Group 4. The shared (A) International trade in goods,

international transactions in
outside psychological
services and protection of
(Social) contract that
intellectual property rights.
emerges when
(B) International trade in goods,
members of a
international transaction in
social
services and protection of
group/organiza-
interest of MNCs.
tion/work unit
(C) International trade in goods,
hold.
international transaction in
Codes : services and protection of
a b c d interest of P.S. units.
(A) 1 2 3 4 (D) International trade in goods,
(B) 3 4 1 2 international transaction in
services and protection of
(C) 2 3 4 1
interest of Domestic
(D) 4 3 2 1 Government.
Paper-III 22 S-17-13
55. Substitute question marks with
appropriate terms :
Products Existing New
Markets Products Products
Existing 1–? 2–?
Market
New Market 3–? 4–?
Options :
(A) 1- Market development
2- Market penetration
3- Product development
4- Diversification
(B) 1-Market penetration
2-Product development
3-Market development
4-Diversification
(C) 1-Market development
2-Diversification
3-Market penetration
4-Product development
(D) 1-Market penetration
2-Product development
3-Diversification
4-Market development
56. Arrange the Entrepreneurial
motivation factors on the basis of
proper sequences.
(A) Need for achievement, Locus
of control, vision, desire for
independence, passion and
drive.
(B) Locus of control, vision, desire
for independence, passion,
drive and need for
achievement.
(C) Vision, desire for
independence, passion, drive,
locus of control and need for
achievement.
(D) Desire for independence, need
for achievement, locus of
control, vision, passion and
drive.
Paper-III
57. The main function of venture
capitalist is to
(A) Provide funds to the steps
necessary to establish the
commercial viability of a new
product, process or service.
(B) Provide funds at all stages of
marketing of new product,
process or service.
(C) Provide funds at all stages of
production of a new product,
process or a service.
(D) Provide funds at all stages of
Research of a new product,
process or a service.
58. An industrial unit, according to RBI,
is sick if
(A) incurred cash loss in the
previous accounting year.
(B) likely to incur loss in the
following year.
(C) current ratio is less than 1 : 1
with weak debt: equity ratio.
(D) All of the above.
59. SIDBI has been entrusted with the
responsibility of
(A) Providing financial assistance
to all sectors.
(B) Developing medium and large
scale industry.
(C) Providing incentives to
medium scale industry.
(D) Developing and supporting
small business.
24 S-17-13
60. Match the following : 62. Lawrence Kohlberg, in his six stage
List – I List – II model of cognitive development,
(Innovation) (Refers to) explains :
(a) Paradigm (i) Changes in the (A) Why people make different
innovation things which decisions in similar ethical
are situations ?
organization (B) How people make decisions
offers. based on the stage of cognitive
(b) Position (ii) Changes in the moral development ?
innovation ways in which (C) Both of the above.
they are created
and delivered. (D) None of the above.
(c) Product (iii) Changes in the
innovation context in 63. The Board of Directors can appoint
which the (i) Additional Director
products/
services are (ii) Causal Director
introduced. (iii) Alternative Director
(d) Process (iv) Changes in the (iv) Nominee Director
innovation underlying (A) (i), (ii) and (iii)
mental models
(B) (ii), (iii) and (iv)
which frame
what the (C) (iii), (iv) and (i)
organization (D) (iv), (i) and (ii)
does.
Codes :
64. Assertion (A) : The poor compliance
(a) (b) (c) (d)
to environmental regulations is
(A) (iv) (iii) (i) (ii) attributed to tax enforcement
(B) (i) (ii) (iii) (iv) despite regulatory framework.
(C) (iii) (iv) (ii) (i)
Reasoning (R) : The Government is
(D) (ii) (i) (iv) (iii) not capable of enforcing full
compliance.
61. A Business Organization deals with (A) (A) is correct and (R) is the
product/service and has relationship right explanation of (A).
with stackholder which is being
considered a part of ‘management (B) (A) and (R) both are correct,
discipline’ is known as but (R) is not the right
explanation of (A).
(A) Maximisation of Wealth
(B) Business Ethics (C) (A) is correct, but (R) is not
correct.
(C) Relationship Management
(D) Optimisation of Profits (D) Both (A) and (R) are incorrect.

Paper-III 26 S-17-13
65. Match the following : 66. The degree to which the value of
List – I List – II future cash transactions can be
(a) Work (i) includes taking affected by exchange rate
ethics care of issues fluctuations is referred to as
like air and (A) Economic exposure
water (B) Transaction exposure
pollution, toxic
(C) Translation exposure
waste disposal
etc. (D) None of the above
(b) Values (ii) is an
organisation’s 67. Forward Premium or Discount can be
obligation to computed by which of the following
benefit society formulae ?

u
in ways that Spot rate – Forward rate
transcend the (A) Spot rate
prime business
360
objectives of
Future point in time
maximizing
u
profit. Spot rate – Forward rate
(B) Forward rate
(c) Environ- (iii) is a
mental characteristic 360
respons- attitude of a Future point in time

u
bility of a group towards Forward rate – Spot rate
(C) Forward rate
business what
constitutes the 360
morality of Future point in time

u
work. Forward rate – Spot rate
(d) Corporate (iv) determine the (D) Spot rate
Social overall
360
Responsi- personality of Future point in time
bility an individual
and the
organization 68. Which of the following is not a
that he is product technology transfer ?
working for. (A) Collaboration in R and D.
Codes : (B) Transfer of product designs and
(a) (b) (c) (d) technical specifications.
(A) (i) (ii) (iii) (iv) (C) Feed back on product
(B) (iv) (iii) (ii) (i) performance.
(C) (iii) (iv) (i) (ii) (D) Provision of machinery and
(D) (ii) (i) (iv) (iii) equipment to suppliers.
Paper-III 28 S-17-13
69. Stops involved in settling disputes 71. The main function(s) of WTO is/are :
under WTO is given below. Arrange (A) To handle trade disputes
them in correct order . constructively.
(i) Panel set up and appointment (B) To help promote peace among
of panelists. business community.
(C) To provide rules that make life
(ii) Final Report to WTO members.
easier for all people involved in
(iii) Final Report to partners. Foreign trade.
(iv) Consultations, mediations, etc. (D) All of the above.
(v) Adoption of Report by Dispute
Settlement Body. 72. Which of the following transactions
reflect economic exposure but not
Codes :
transaction exposure ?
(A) (i), (iv), (ii), (iii), (v) (A) A firm’s imports/exports
(B) (iv), (i), (ii), (iii), (v) denominated in local currency.
(B) A firm’s imports/exports
(C) (iv), (i), (iii), (ii), (v)
denominated in foreign
(D) (i), (ii), (iii), (v), (iv) currency.
(C) Interest received from foreign
70. From the statements given below, investments.
choose the correct answer : (D) Interest owed on foreign funds
borrowed.
Statement I : To become a global
corporation, a firm passes
73. Which of the following is the rate at
through different stages, viz,
which a banker is willing to buy
capturing markets abroad,
foreign currency ?
establishing joint
(A) Ask rate (B) Offer rate
venture/subsidiaries abroad,
developing into MNCs and (C) Bid rate (D) Spread rate
moving towards global mode
of operation. 74. Euro dollars are
(A) Currency (B) Deposits
Statement II : Government support
(C) Bonds (D) Equity
is not a pre-requisite for the
successful globalization of the
business. 75. When an Indian exporter avails post-
shipment credit in foreign currency,
(A) Statement I is correct and II is what is taken as the bench mark for
wrong. the interest rate ?
(B) Statements I and II are correct. (A) Bench mark lending rate
(C) Statements I and II are wrong. (B) MIBOR
(C) LIBOR
(D) Statement I is wrong, but II is
correct. (D) Indian Bank rate

Paper-III 30 S-17-13
 MANAGEMENT
Paper – III
Note : This paper contains seventy five (75) objective type questions of two (2) marks each.
All questions are compulsory.
1. Match the items of List – I with those 3. Cost-plus pricing is not suitable for
of List – II and give the correct code (A) Monopoly Pricing
from the following :
(B) Product Tailoring
List – I List – II
a. Sales i. John (C) Refusal Pricing
Maximisation Williamson (D) Monopsony Pricing
Model
b. Managerial ii. R.M. Cyert and
4. Indicate the correct code matching
Discretion J.G. March
the items of List – I with those in
Model
List – II as follows :
c. Integrative iii. William J.
Model Baumol List – I List – II
d. Behavioural iv. Oliver a. Resorting i. Cost reduction
Model Williamson to New through output
Codes : Technology expansion
a b c d b. Excess ii. Constant cost
(A) ii iii iv i Capacity of despite output
(B) iii iv i ii the Plant expansion
(C) i ii iii iv
c. Employees’ iii. Internal
(D) iv i ii iii
Training Economies
2. Match the items of the following two Centres
lists and give the correct code for the d. Reserve iv. External
following : Capacity of Economies
List – I List – II the Plant
a. Scale of i. Indifference Codes :
Preferences Curves
b. Inadequate ii. Ordinal a b c d
Explanation of Utility (A) i iii ii iv
Giffen Goods (B) iii i iv ii
c. Curves always iii. Demand (C) iv ii i iii
slope Curves
(D) ii iv iii i
negatively
d. Inseparation of iv. Marshallian
Income and Utility 5. In a mixed economy, the central
Substitution Analysis problems are solved through which of
effects following ?
Codes : (A) Price mechanism
a b c d
(B) Regulated market mechanism
(A) ii i iii iv
(B) i iii iv ii (C) Market mechanism and
(C) ii iv i iii economic planning
(D) iii ii iv i (D) Economic planning and control
Paper-III 2 D-17-13
6. Indicate the correct code matching 10. The Ringlemann effect describes
the items in List – I with those in (A) the tendency of groups to make
List – II as follows : risky decisions
List – I List – II
a. Excess of i. Stability of (B) social loafing
aggregate National (C) social facilitation
investment over Income (D) the satisfaction of members’
aggregate savings, social needs
at full
employment level
b. Equality of ii. Recession- 11. The term “workforce diversity”
aggregate income ary gap refers to differences in race, age,
and savings gender, ethnicity, and _______
c. Comparatively iii. Multiplier among people at work.
greater decrease in effect
income following (A) social status
a decrease in (B) personal wealth
investment (C) able-bodiedness
d. Aggregate iv. Inflationary (D) political preference
expenditure being gap
less than national
income at full 12. Match the following and indicate the
employment level correct code :
Codes : List – I List – II
a b c d
(A) ii iv i iii a. A form of learning i. Stimulus
(B) iv i iii ii through association
(C) iii ii iv i that involves the
(D) i iii ii iv manipulation of
stimuli to influence
7. The study of gestures and body
postures for their impact on behaviour
communication is known as : b. The process of ii. Reinforce-
(A) Kinesics controlling ment
(B) Proximics behaviour by
(C) Semantics manipulating its
(D) Informal channels consequences
8. Which of the following deals with c. Something that iii. Operant
“what, why, when and how” tasks to incites action condition-
be performed ? ing
(A) Job Analysis
(B) Job Description d. The administration iv. Classical
(C) Job Specification of a consequence as condition-
(D) Job Enrichment a result of ing
behaviour
9. According to Henry Mintberg,
managers perform three roles. Codes :
Indicate the one role which is not a b c d
among them. (A) i ii iii iv
(A) Decisional (B) iv iii ii i
(B) Informational
(C) Interpersonal (C) iii iv i ii
(D) Supervisory (D) iv iii i ii
Paper-III 4 D-17-13
13. Which of the following techniques 18. In which of the following methods
permits the complainant to remain grievances are ascertained at the time
anonymous ? of employees quitting the
(A) The exit interview organisation ?
(B) The gripe-box system (A) The exit interview method
(C) The opinion survey
(B) The gripe-box system
(D) None of the above
(C) The open-door policy
14. Which of the following Acts has a (D) Opinion surveys
direct relevance for grievance
handling practices ?
(A) The Industrial Employment 19. Redressal of employees’ grievances
(Standing Order) Act, 1946 covers
(B) The Industrial Disputes Act, (A) positive attitude towards
1947 employees’ grievances and
(C) The Factories Act, 1948 readiness to help
(D) All of the above (B) expediting machinery for
resolving employees’
15. That the authority rests solely with grievances
the management with no right to (C) equitable salary system for all
anyone to challenge is the basis of
the (D) both (A) and (B)
(A) Pluralist Approach
(B) Systems Approach 20. Which of the following are most
(C) Unitary Approach closely interconnected ?
(D) Social Action Approach
(A) Leadership and organisation
structure
16. Which of the following is not a
welfare provision under the Factories (B) Leadership and motivation
Act, 1948 ? (C) Leadership and planning
(A) Canteen
(D) Leadership and performance
(B) Crèches
appraisal
(C) First Aid
(D) Drinking water
21. _______ is defined as disputes
17. A person who has ultimate control between parties submitted and
over the affairs of the factory under decided by a neutral third party.
the Factories Act, 1948 is called (A) Collective Bargaining
(A) Occupier
(B) Affirmation Action
(B) Manager
(C) Arbitration
(C) Chairman
(D) Managing Director (D) Negotiation
Paper-III 6 D-17-13
22. The appropriate method to derive the 24. Match the correct option for each of
growth rate according to Dividend- the following approaches of Capital
Growth Model for equity valuation is structure theories :
(A) Growth rate of sales over a a. The Net i. The market value
period of time Income of the firm is not
(B) Plough-back ratio multiplied Approach affected by
with return-on-equity changes in the
(C) Plough-back ratio multiplied capital structure
with net profit margin b. The Net ii. Declining
(D) Growth rate of fixed assets Operating weighted-average
over a period of time Income cost of capital
Approach
23. Match the items given in List – I and c. The iii. The firms prefer to
List – II and indicate the correct Modigliani rely on internal
code : & Miller accruals followed
List – I List – II Proposi- by debt finance
a. The technique i. Hillier tion – I and external
used in examining Model finance
the effect of d. The iv. The value of the
change in one Pecking firm depends on
variable at a time Order the earnings and
b. The process of ii. Sensitivity Theory risk of its assets
developing the Analysis rather than the way
frequency the assets have
distribution of Net been financed
Present Value
Codes :
c. The technique iii. Decision
used in examining tree a b c d
the chances of Net (A) i iii ii iv
Present Value (B) iv ii iii i
being greater than (C) ii i iv iii
zero (D) iii iv i ii
d. The technique iv. Simulation
used when 25. Under the Walter Model, if the rate
investment at a of return is greater than the cost of
future date is to be capital :
decided based on (A) Price per share does not vary
the probable with the increase or decrease in
outcome of dividend pay-out ratio.
previous (B) Price per share increases as the
investment dividend pay-out ratio
Codes : increases.
a b c d
(C) Price per share increases as the
(A) i ii iv iii
dividend pay-out ratio
(B) ii iv i iii
decreases.
(C) iii iv i ii
(D) iv i ii iii (D) None of the above.

Paper-III 8 D-17-13
26. Which one of the following is not the 30. Match the following and indicate the
major objectives of International correct code :
Monetary Fund ?
(A) Promoting co-operation among a. Mergers resulting i. Conglo-
countries on international into economies merate
monetary issues. achieved primarily Merger
(B) Giving loans to countries for by eliminating the
the purpose of economic duplicate facilities
development.
(C) Promoting stability in the b. Mergers resulting ii. Horizontal
exchange rates. into expansion of Merger
(D) Promoting free mobility of company’s
capital across countries. business towards
27. Match the correct combination for ultimate consumer
Assertion and Reason as argued by or source of raw
Shapiro and Titman : material
Assertion (A) : Management c. Mergers in iii. Vertical
decisions to insure or hedge
asset appear at best neutral unrelated line of Merger
mutation. business
Reason (R) : The price of systematic Codes :
risk is identical for all the parti- a b c
cipants in the financial market. (A) i ii iii
(A) Assertion (A) is correct, but
Reason (R) is incorrect. (B) ii iii i
(B) Assertion (A) is incorrect, but (C) iii i ii
Reason (R) is correct. (D) iii ii i
(C) Both the Assertion (A) and the
Reason (R) are incorrect. 31. Consider the following statements :
(D) Both the Assertion (A) and the 1. Usually people from the same
Reason (R) are correct. culture, social class and
28. Conservative policy of working occupation have the same life
capital refers to style.
i. Situation with high investment in 2. The consumer buying decision
current assets
ii. Situation which stimulates sales will involve the same stages
iii. Situation with frequent regardless of whether the goods
production stoppages involved are low or high
Codes : involvement.
(A) iii is correct. 3. “Salesmen are born, not made.”
(B) ii is correct.
(C) i is correct. 4. The ultimate goal of a
(D) i and ii are correct. customer-oriented organisation
is to maximise its customer’s
29. DUPONT analysis refers to
satisfaction.
(A) Earning Per Share = (Net Profit
Indicate the correct answer through
/ Number of Equity Shares)
the codes.
(B) Return on Assets =
Codes :
Net Profit Margin
(A) All the statements are true.
Total Assets Turnover Ratio
(B) Statements 1 and 2 are false,
(C) Total Assets Turnover Ratio = others are true.
Sales (C) Statement 3 is true, others are
Average Total Assets false.
(D) None of the above (D) All are false.
Paper-III 10 D-17-13
32. Cognitive dissonance is associated 36. Relationship marketing aims at
with which stage of the consumer building mutually satisfying long-
buying decision process ? term relations with
(A) Need recognition (A) Customers
(B) Employees
(B) Information search
(C) Marketing partners
(C) Evaluation of alternative (D) All of the above
(D) None of the above
37. In the social-cultural arena,
33. Consider the following statements : marketers may not understand
i. Brand equity is a function of (A) People’s views
brand awareness and brand (B) Organisation’s views
preference. (C) Society’s views
ii. Product lines tend to shorten (D) Government’s views
over time. 38. A manufacturer of industrial goods
iii. The Standards of Weights and would use ______ sales force
Measures (Packaged structure.
Commodities) Rules, 1977 (A) Territorial (B) Matrix
provide for the labelling rules (C) Product (D) Market
relating to packaged
commodities. 39. Which of the following is/are a
type(s) of direct marketing ?
iv. AIDA Model is relevant to (A) Direct-Response Advertising
advertising as well as physical (B) Personal Selling
distribution. (C) Telemarketing
Indicate the correct answer. (D) All of the above
Codes :
(A) All the above statements are 40. In inventory control, which one of
false. the following factors does not affect
the ROL (Re-Order-Level) ?
(B) Only iii is true. (A) Average Daily Usage
(C) i, iii and iv are true. (B) Lead Time
(D) Only i is true. (C) Safety Stock
(D) Holding Costs
34. A marketer developing a brand name 41. The number of allocated cells in the
that is easy to pronounce would optimal solution of a transportation
conduct : problem having m rows and n
(A) An association test columns is :
(B) A memory test (A) m + n – 1
(B) m + n – 1 or less
(C) A preference test (C) m + n + 1
(D) A recall test (D) None of the above
42. In a railway yard, goods trains arrive
35. Before performing the business at a rate of 30 trains per day. Assume
analysis for developing a new that the inter-arrival time follows an
product, a company should be exponential distribution and the
engaged in service distribution is also an
(A) Idea screening exponential with an average of 36
(B) Product development minutes. The probability that the size
of the queue exceeds 10 is
(C) Marketing strategy development (A) 0.944 (B) 0.750
(D) Product positioning (C) 0.250 (D) 0.056
Paper-III 12 D-17-13
43. If in the optimal solution of a linear 47. Read the following statements and
programming problem, a non-basic indicate the correct code from given
variable has zero value in the Cj – Zj below :
row, the problem Statement I : A subjective
(A) has no feasible solution probability may be nothing
(B) has multiple optimal solutions more than an educated guess.
(C) is unbounded Statement II : One reason that
(D) (A) and (B), but not (C) decision-makers at high levels
44. The best model to compute the often use subjective probabilities
probability that a machine is that they are concerned with
functioning well in one period will unique situations.
continue to function or will break Codes :
down in the next period is
(A) Delphi Model (A) Statement I is correct, but
(B) Decision-tree Model Statement II is wrong.
(C) Multiplicative Model (B) Statement I is wrong, but
(D) Markov-Process Model Statement II is correct.
– (C) Both Statements I and II are
45. Statement – I : X and R charts use
correct.
the sample standard deviation
(D) Both Statements I and II are
to measure process variability.
wrong.
Statement – II : The lower control
limit on an R chart is always 48. Which of the following is a step in
– performing analysis of variance ?
R – (1 – 3d3/d2). i. Determine an estimate of
Codes : population variance from
(A) Both Statements I and II are within samples.
correct. ii. Determine an estimate of
(B) Statement I is correct, but II is population variance from
wrong. among the sample means.
(C) Statement I is wrong, but II is iii. Determine the difference
correct. between expected and observed
(D) Both Statements I and II are frequency for each class.
wrong. Codes :
46. Assuming ‘X’ as the ‘quantity of (A) i and ii only.
rainfall’ and ‘Y’ as the ‘agricultural (B) i and iii only.
yield’, which of the following will (C) ii and iii only.
express the regression equation of Y (D) i, ii and iii
on X ? 49. From the following, identify the
__ VX __ decision-support systems :
VY
(A) (X – X) = r (Y – Y ) i. Status inquiry system

VY
ii. Data analysis system
__ __
VX
iii. Accounting system
(B) (X – X) = r (Y – Y )
iv. Information system
__ VY __ Codes :
VX
(C) (Y – Y) = r (X – X ) (A) i, ii and iii
VX
__ __ (B) ii, iii and iv

VY
(D) (Y – Y) = r (X – X ) (C) only iii
(D) i, ii, iii and iv
Paper-III 14 D-17-13
50. Which of the following are the 53. The managerial process of
components of data warehouses ? developing and maintaining a viable
i. Metadata fit between an organisation’s
objectives, skills, and resources, and
ii. Integration Programs its market opportunities is called
iii. Summarised data (A) Establishing strategic business
iv. Archives units
Codes : (B) Market-oriented strategic
planning
(A) i, ii and iii only
(C) Market research
(B) i, iii and iv only (D) Portfolio analysis
(C) ii, iii and iv only
(D) i, ii, iii and iv 54. Low cost, product differentiation,
and focused market are the examples
of
51. Arrange the following stages (A) Corporate strategy
involved in DBMS in proper
(B) Business strategy
sequence :
(C) Functional strategy
i. Creating (D) Behavioural strategy
ii. Defining
iii. Data structuring 55. The word “Tactic” is the most likely
iv. Updating to be associated with
(A) Corporate strategy
v. Interrogating
(B) Business strategy
Codes : (C) Operational strategy
(A) i, iii, ii, iv and v (D) Behavioural strategy
(B) ii, i, iii, v and iv
(C) iii, ii, v, iv and i 56. A marketing effectiveness review is
(D) ii, iii, i, iv and v part of _______ control.
(A) Annual Plan
(B) Profitability
52. For years Converse had a major share (C) Proficiency
in the athletic shoe market. Then, in (D) Strategic
the 1980’s, Nike and Reebok
re-invented the athletic shoe industry,
and Converse changed nothing. Now 57. When a cigarette manufacturing
Converse is a minor brand in a company drastically cuts price of a
growth industry. According to the popular brand of its cigarettes, to
BCG matrix, Converse is an example increase its share in the competitive
of market, it is implementing a ______
strategy.
(A) Cash Cow (A) Integrative growth
(B) Dog (B) Market development
(C) Question mark (C) Market penetration
(D) Star (D) Product development
Paper-III 16 D-17-13
58. An entrepreneur who is neither 61. Small Industries Development
willing to introduce new changes nor Organisation (SIDO) has been set up
to adopt new methods is known as : to
(A) Adoptive Entrepreneur (A) promote, aid and foster the
growth of small-scale
(B) Fabian Entrepreneur industries in the country.
(C) Innovative Entrepreneur (B) formulate, coordinate and
monitor the policies and
(D) Drone Entrepreneur programmes for promotion and
development of small scale
industries.
59. UNIDO preparatory meeting on the (C) provide consultancy and
“Role of Women in Industrialisation training to small entrepreneurs
in Developing Countries” held in – both existing and prospective.
(D) provide integrated
February 1978. Identified constraints,
administrative framework at
which hinder women from the district level for promotion
participating in industrial activities. of small-scale industries in
The meeting was held at rural areas.
(A) Vienna 62. Match the items in the two lists :
List – I List – II
(B) New Delhi (Part of Social (Features)
(C) Geneva Responsibility)
a. Responsibility i. Stock
(D) Mexico City towards owners
b. Responsibility ii. Quality product
towards
60. Which of the following statements is employees
false ? c. Responsibility iii. Safety of their
(A) Venture capital is outside towards depositors investment
d. Responsibility iv. Job security
equity that comes from towards customers
professionally managed pools v. Interest
of investor money. Codes :
a b c d
(B) Term Loan from bank is
(A) i iii ii v
needed to pay dividends to (B) iii iv v ii
shareholders on time. (C) i iii v ii
(C) Permanent working capital is (D) iii iv ii i
the amount a firm needs to
63. First industrial estate in India was
produce goods and services at established by SSIB in 1955 at
the lowest point of demand. (A) Okhla in Delhi
(D) Temporary working capital is (B) Ghaziabad in Uttar Pradesh
(C) Rajkot in Gujarat
the amount which a firm may (D) Sannat Nagar in Jammu &
need to meet seasonal demand. Kashmir
Paper-III 18 D-17-13
64. The Companies Bill, 2012 has been 67. According to which committee
passed by Parliament in August, should an organization submit
2013. What is not true about this Bill ? regular social reports ?
1. It does not provide for (A) Sachchar Committee
corporate social responsibility. (B) Kumarmangalam Birla Report
2. It provides for measures to curb (C) Both of above
corporate frauds. (D) None of above
3. It does not include the concept
of corporate fraud.
4. It emphasises on self reputation 68. The method of collecting money for
and stringent penalties on Corporate Social Responsibility
professionals. (CSR) by raising prices or following
Codes : many other unethical ways is often
(A) All of the above are true. described as :
(B) While items 1 and 2 are true, (A) Reverse effect
the rest are not. (B) Reverse Robinhood effect
(C) While items 2 and 4 are true, (C) Boomerang
the rest are not. (D) Roosevelt effect
(D) All of the above are false.
65. A high ranking organizational 69. When the values and priorities of the
official (e.g. general counsellor or parent organization guides the
vice president) who is expected to strategic decision making of all its
provide strategies for ensuring ethical international operations, it is known
conduct throughout the organization as
is known as (A) Polycentric Orientation
(A) Ethics Manager (B) Regiocentric Orientation
(B) Ethics Officer (C) Ethnocentric Orientation
(C) Ethics Controller (D) Geocentric Orientation
(D) Ethics Counsellor
66. Indicate the correct code for the 70. Indicate the correct code for the
following statements about Assertion following two statements of
(A) and Reason (R) : Assertion and Reason :
Assertion (A) : All ethical theories Assertion (A) : GDP increases a
are not equally applicable currency’s value.
every time in all types of Reason (R) : Since there is likely to
ethical dilemma resolution.
be greater demand for
Reason (R) : The ethical resolution
should be based as far as country’s currency.
possible on a cognitive ethical Codes :
principle with justification. (A) (A) and (R) both are correct,
Codes : but (R) is not the appropriate
(A) (A) is correct, (R) is incorrect. explanation of (A).
(B) (R) is correct, (A) is incorrect. (B) (A) and (R) both are correct
(C) Both the statements (A) and and (R) is the right explanation
(R) are correct. of (A).
(D) Both the statements (A) and (C) (A) is correct, but (R) is not
(R) are incorrect. correct.
(D) Both (A) and (R) are not
correct.
Paper-III 20 D-17-13
71. The salient features of India’s 74. Indicate correct code for the
Foreign Trade Policy are : following statements of Assertion
i. Reducing the interest burden (A) and Reasoning (R) :
and extension of the interest Assertion (A) : The Global
subvention scheme. Managers must develop
ii. Rationalizing defence-related systems and policies that
imports. address floor price, ceiling
iii. Focus on labour-intensive price and optimum price.
sectors. Reasoning (R) : The Global
iv. Extension of zero-duty EPCG Managers must be in line with
scheme. global opportunities and
Codes : constraints.
(A) All (i), (ii), (iii) and (iv) Codes :
(B) (i), (ii) and (iii) only (A) (A) is correct, but (R) is not the
(C) (i), (iii) and (iv) only right explanation of (A).
(D) (ii), (iii) and (iv) only (B) (A) and (R) both are correct,
but (R) is not the right
72. Arrange the following steps of explanation of (A).
Dispute Settlement Mechanism under (C) (A) and (R) both are correct,
the WTO in the systematic order : and (R) is the right explanation
i. Panel Proceedings of (A).
ii. Appellate Body (D) (A) and (R) both are incorrect.
iii. Consultations
iv. Compliance Panel 75. Match the following in the context of
v. Arbitration Panel International Market Entry and
Codes : indicate the correct code :
(A) iii i ii iv v List – I List – II
(B) v iv iii ii i a. Assembly i. Exports
(C) iv ii iii v i b. Acquisition ii. Indirect
(D) i ii iii iv v Exports
c. Export iii. Contractual
73. Which of the following schemes is House Entry
not a part of India’s Foreign Trade d. Commission iv. Direct
Policy 2009-14 ? Agent Investment
(A) DFIA (Duty-Free Import Codes :
Authorization)
a b c d
(B) TFITES (Tax-Free IT Export
Scheme) (A) iii iv i ii
(C) VKGUY (Vishesh Krishi and (B) iv iii ii i
Gram Udyog Yojana) (C) i ii iii iv
(D) FMS (Focus-Market Scheme) (D) iv ii iii i
Paper-III 22 D-17-13
 MANAGEMENT
Paper – III
Note : This paper contains seventy five (75) objective type questions of two (2) marks each.
All questions are compulsory.
1. In case a decrease in price of a 4. Indicate the correct code matching
commodity results in an increase in the items in List – I with those in
its demand on a negatively sloping List – II as follows :
demand curve, it is called List – I List – II
(A) An increase in demand a. Competitive i. Variations in
(B) An increase in quantity parity in advertising
demanded advertising
b. Promotional ii. Advertising
(C) Law of demand
elasticity of scheduling
(D) Any of the above product
c. Optimal iii. Advertising
2. Production function is not based on promotion expenditure
the assumption of the mix
(A) Substitutability of inputs d. Pulsing iv. Marginal
(B) Complementarity of inputs advertising equivalence of
(C) Marketability of products advertising
(D) Specificity of inputs media outlay
Codes :
a b c d
3. Match the items of the following two
lists and indicate the correct code : (A) ii iii i iv
(B) iii i iv ii
List – I List – II
(C) i iv ii iii
a. Trade i. Oligopoly
(D) iv ii iii i
channel pricing
discounts
5. Macroeconomics basically concerns
b. Tie-up sales ii. Locational
with which of following in an
price
economy ?
differentials
(A) Industry, Trade and Commerce
c. Price being iii. Differential
(B) Agriculture, Industry & Trade
non- pricing
responsive to (C) Employment, Inflation &
changes in Growth
demand costs (D) Population, Income and
Economic Planning
d. Basing-point iv. Product-line
pricing pricing
6. The competition commission of India
Codes :
has no rule in regulating which of the
a b c d following ?
(A) iv ii iii i (A) Restrictive Trade Agreements
(B) iii iv i ii (B) Abuse of Market Power
(C) ii i iv iii (C) Unfair Trade Practices
(D) i iii ii iv (D) Mergers and Acquisitions
Paper-III 2 J-17-14
7. The ability to understand, 11. As per Rorsach value survey, which
communicate with, motivate and of the following is not an
support other people, both individually
and in groups, defines which of the instrumental value ?
following management skills ? (A) Ambitious
(A) Hard Skills
(B) Soft Skills (B) Imagination
(C) Conceptual Skills
(D) Political Skills (C) Wise
8. As __________, managers receive a (D) Capable
wide variety of information and serve as
the nerve centres of internal and external
information of the organization. 12. When we judge someone on the basis
(A) Leaders
(B) Monitors of our perception of the group to
(C) Distribution handlers which he or she belongs, we are
(D) Resource allocators using the shortcut, called ________
9. Which one is the correct combination ?
(A) Theory of – Bernara (A) Selective Perceptive
Conditioning (B) Halo effect
(B) Operant – B.F. Skinner
Conditioning (C) Contrast effect
Theory (D) Stereotyping
(C) Stimulus – Hoodman
Response
Theory
(D) Theory of – Marshall 13. Performance = f (m, a, e). In this
Associates expression ‘e’ stands for
10. Match the following : (A) Efficiency
List – I List – II
a. Evaluative i. Attitudes (B) Effectiveness
statements or
judgements (C) Environment
concerning (D) Entrepreneurship
objects, people or
events
b. The opinion or ii. Cognitive 14. Selecting a representative sample of
belief segment of Component
an attitude jobs, preparing job descriptions for
c. The emotional or iii. Affective them, comparing them on the basis of
feeling segment Component the information in the job
of an attitude
d. An intention to iv. Behavioural descriptions and placing them in
behave in a component order of their perceived importance
certain way represents which of the following job
towards someone
or something evaluation methods ?
Codes : (A) Job grading method
a b c d
(A) i ii iii iv (B) Job ranking method
(B) iv iii ii i
(C) Points rating method
(C) iv ii iii i
(D) i iii ii iv (D) Guide chart method
Paper-III 4 J-17-14
15. Match the following : 18. The space for every worker
List – I List – II employed on the factory under the
a. A pay plan in i. Elitest pay Factories Act, 1948 should be atleast
which most system (A) 9.9 cubic metre
employees are (B) 10.2 cubic metre
part of the same (C) 13.2 cubic metre
compensation (D) 14.2 cubic metre
system.
b. A pay plan in ii. Skill based 19. Which of the following combinations
which different pay is correct ?
compensation (A) The practice – Job
systems are of replacing Hierarchy
established for narrowly
employees or defined job
groups at descriptions
different with broader
organizational categories of
levels. related jobs
c. A pay system in iii. Egalitarian (B) A firm’s – Pay Grades
which employees pay system decision to
are paid on the pay above,
basis of the jobs below or at the
they can do. market rate for
d. The perceived iv. Internal its jobs
fairness of the pay equity (C) Groups of jobs – Pay Policy
structure within a that are paid
firm. within the
Codes : same pay
a b c d range
(A) i ii iii iv (D) A job that is – Key job
similar or
(B) iii i ii iv
comparable in
(C) i iii ii iv
content across
(D) iii ii i iv firms
16. ________ of an employee is the
20. A technique for resolving conflict in
process of evaluating the employee which the parties agree to have a
performance of the job in terms of neutral third party hear the dispute
the requirements of the job. and make a decision is called
(A) Merit rating (A) Negotiation
(B) Job Evaluation (B) Arbitration
(C) Job Analysis (C) Smoothing
(D) Performance Appraisal (D) Collective Bargaining
17. HRM is regarded as old wine in a 21. Identify the major actor(s) of
new bottle. This idea was formulated industrial relation, from the
by following :
(A) Armstrong (A) Employees
(B) Guest (B) Unions
(C) Storey (C) Government
(D) Peter Drucker (D) All of the above
Paper-III 6 J-17-14
22. The yield to maturity of a bond is the 24. Match the following theories with
interest rate reference to the capital structure
(A) that makes the total cash flows theories :
receivable from owning the List – I List – II
bond equal to the price of the a. Traditional i. Highly profitable
bond. Approach companies
(B) that makes the present value of generally use little
cash flows receivable from debt.
owning the bond equal to the b. Trade-off ii. Optimal capital
price of the bond. Theory structure exists
(C) that makes cash flows c. Packing- iii. Optimal debt-
receivable from the bond till order theory equity ratio of
the first call equal to the face profitable firm
value of the bond. that has stable,
(D) none of the above tangible assets
would be higher
23. Match the correct options for the than the optimal
following capital budgeting appraisal debt-equity ratio
criteria : of unprofitable
List – I List – II firm.
a. The criterion i. Internal Rate Codes :
based on the cash of Return a b c
flows of a limited
(A) i ii iii
period.
(B) ii iii i
b. The criterion ii. Pay-back
based on profit Method (C) iii i ii
over life of the (D) i iii ii
project. 25. Lintner Model shows that the current
c. The criterion that iii. Accounting dividend depends
considers cash Rate of (A) partly on current earnings and
flows over the life Return partly on the previous year’s
of project which dividend.
considered the (B) partly on market rate of return
time value of and partly on the expected rate
money. of return.
d. The criterion that iv. Net Present (C) partly on current earnings and
derives the Value partly on the expected rate of
outcomes in terms return.
of the rate of
(D) partly on previous year’s
return considering
dividend and partly on the
the cash flows
market rate of return.
over the life of
project with the 26. “The difference between the forward
time value of rate and the spot rate is just enough
money. to offset the difference between the
Codes : interest rate in the two currencies.”
a b c d This concept is known as
(A) i ii iii iv (A) Purchasing power parity
(B) ii iii iv i (B) Fisher effect
(C) iii iv i ii (C) Interest rate parity
(D) iv iii ii i (D) International Fisher effect
Paper-III 8 J-17-14
27. Match the following terms : 30. Match the following expressions :
List – I List – II List – I List – II
a. Forward i. An agreement a. Venture i. Emphasises on
contract between two parties capital Corporate
to exchange one set governance
of cash flows for b. Private ii. Issue of securities
another equity to a select group
b. Futures ii. A standardized of persons not
contract contract exceeding 49
c. Swap iii. The seller of an c. Private iii. Emphasises on
instrument grants placement Management
the buyer the right, capability
but not the Codes :
obligation, to buy a b c
or sell some asset at (A) i ii iii
a pre-determined (B) ii iii i
price during the (C) iii i ii
specified period (D) i iii ii
d. Options iv. A tailor made
contract 31. The fundamental determinant of a
Codes : person’s wants and behaviour is
(A) Perception
a b c d
(B) Personality
(A) i iii ii iv (C) Culture
(B) ii iv iii i (D) Social Group
(C) iii i iv ii
(D) iv ii i iii 32. Consider the following statements :
(1) Exclusive dealing amounts to a
28. An analysis of percentage financial restrictive agreement under the
statement where all the Balance Competition Act, 2002.
Sheet items are divided by the total (2) The rate of growth in the
assets and all the income statement service sector in India is
items are divided by net sales or highest among all the other
revenue is known as sectors of economy.
(A) Index Analysis (3) Predatory pricing is not
regulated under any law.
(B) Trend Analysis
(4) A company using sales force
(C) Ration Analysis promotion and trade promotion
(D) Common size Analysis is using “Pull” strategy.
Indicate the correct answer out of the
29. A company collecting cash from following :
customers within two days and (A) While statements (1) and (2)
paying to suppliers in 35 days, will are true, (3) and (4) are not.
have (B) While statements (1) and (3)
(A) Negative operating cycle are true, rest are not.
(B) Negative cash cycle (C) While statement (2) is true,
(C) Both (A) and (B) others are not.
(D) None of (A) or (B) (D) All the statements are true.
Paper-III 10 J-17-14
33. Personal influence is most important 38. Which of the following determinants
at the _____ stage of the consumer of service quality is the most
adoption process. important ?
(A) Adoption (B) Awareness (A) Empathy
(C) Evaluation (D) Trial (B) Reliability
(C) Responsiveness
34. The price setting method most (D) Tangibility
closely corresponding of the concept
of product positioning is 39. While developing customer loyalty
(A) Cost-plus pricing programmes, database is often not
(B) Psychological pricing helpful in
(C) Going-rate pricing (A) Identifying prospective
(D) Perceived-value pricing customers
(B) Deepening customer loyalty
35. Use of mail, telephone and other (C) Avoiding serious customer
non-personal contact tools to mistakes
communicate with, or solicit a (D) Creating consumer associations
response from, specific customers 40. The problem caused by a redundant
and prospects is called constraint is that
(A) Advertising (A) the problem shall have no
(B) Direct Marketing feasible solution.
(C) Sales Promotion (B) the problem shall have a
(D) Public Relations bounded solution.
36. _________ marketing describes the (C) the redundant constraint can
employees’ skills in serving the never be satisfied.
clients. (D) none of the above.
(A) External 41. The upper control limit for an
(B) Interactive R-chart is
(C) Internal –
(D) Relationship (A) R D3
37. Match the two sets of concepts : –
(B) R D4
List – I List – II
–
i. Evaluation of a. Perception (C) R (1 + 3d3 / (d2 n ))
Alternatives – –
ii. Post-purchase b. Cognitive (D) X + A2 R
behaviour Dissonance
42. A company uses rivets at a rate of
iii. Selective c. Life style
15,000 kg per year, rivets costing 6
distortion
per kg. If the cost of placing an order
iv. Psychographic d. Expectancy-
segmentation value model is 60 and the carrying cost of the
inventory is 30 percent per annum,
Codes :
a b c d the Economic Order Quality will be
(A) i ii iii iv (A) 1000 × 2 kg
(B) ii iii iv i (B) 1000 kg
(C) iii ii iv i (C) 100 10 kg
(D) iv iii ii i (D) 200 5 kg
Paper-III 12 J-17-14
43. The arrival rate of customers at a 46. If a = 4 and b = 2 for a particular
service window of a cinema hall estimating line with one independent
follows a probability distribution variable, and the value of the
with a mean rate of 45 per hour. If independent variable is 2, what will
the service rate of the clerk follows be the value of the dependent
Poisson distribution, with a mean of
variable ?
60 per hours, what is the probability
of having no customer in the system ? (A) –1
(A) 0.75 (B) 0.60 (B) 0
(C) 0.25 (D) 0.45 (C) 8
(D) 10
44. From which of the following can
retailers immediately determine, how 47. For estimating an equation to be a
many packets they should stock each
perfect estimator of the dependent
day to maximize the profit ?
variable, which of the following is
(i) Expected profit from each
true ?
stocking action
(ii) Expected loss from each (i) The standard error of the
stocking action. estimate is zero.
(iii) Conditional-profit table (ii) All the data points are on the
Codes : regression line.
(A) (i), (ii) and (iii) (iii) The co-efficient of determination
(B) (i) and (ii) is (–1).
(C) (ii) and (iii) Codes :
(D) (i) and (iii) (A) (i) and (ii) only
(B) (ii) and (iii) only
45. (i) In PERT, it is assumed that the (C) (i) and (iii) only
activity times follow the beta
(D) (i), (ii) and (iii)
distribution.
(ii) In CPM, two time and cost
estimates are made for each 48. The ‘F’ ratio contains :
activity, which are called the (i) Two estimates of the
optimistic and pessimistic population variance
estimates. (ii) Two estimates of the
(iii) Time is the only variable used population mean
in PERT.
(iii) One estimate of the population
(iv) While in PERT the emphasis is mean and one estimate of the
on event, in CPM the emphasis
population variance
is on activity.
(A) All of the above are true. Codes :
(B) While (i) and (ii) are false, (iii) (A) (i), (ii) and (iii)
and (iv) are true. (B) (i) and (ii)
(C) Only (i), (iii) and (iv) are true. (C) (i) only
(D) All the above are false. (D) (iii) only
Paper-III 14 J-17-14
49. From the following statements, 51. Match the items given in List – I with
identify the correct answer : the most suitable items in List – II :
Statement I : The chi-square and List – I List – II
‘t’ distributions are always a. Wireless i. Ring
symmetrical distributions. networking
Statement II : If we have large b. Network ii. Infrared
enough sample sizes, the devices
assumption that “the samples c. Network iii. Network
are drawn from a normal models Repeater
population” can be discarded d. Network iv. TCP/IP
with ANOVA testing. Topology 4 layered
protocol
Codes :
Codes :
(A) Both the Statements I and II are
a b c d
correct.
(A) ii i iii iv
(B) Statement I is correct, but
(B) iv ii iii i
Statement II is wrong.
(C) ii iii iv i
(C) Statement II is correct, but
Statement I is wrong. (D) iii iv i ii
(D) Both the Statements I and II are
wrong. 52. Which one is not the item to be
necessarily included in the report on
Corporate Governance in the Annual
50. Arrange the following steps involved
Report of listed companies ?
in the ‘information system
(A) Board of Directors
development cycle’ in the ascending
(B) Audit Committee
order :
(C) Shareholders’ Committee
(i) Installation of the system
(D) All of the above
(ii) Operations of the system
(iii) Definition and objectives of the
53. According to the BCG matrix, and
system
given your knowledge of the
(iv) Review and evaluation technological environment, a
(v) Development of the system business unit that manufactures
Codes : typewriters would be an example of a
(A) (i), (iii), (v), (iv), (ii) (A) Cash cow
(B) (iii), (i), (v), (ii), (iv) (B) Dog
(C) (v), (i), (iii), (iv), (ii) (C) Question mark
(D) (iii), (v), (i), (ii), (iv) (D) Star
Paper-III 16 J-17-14
54. Assertion (A) : Vertical integration 57. The first step in the development of a
is considered as a growth business mission is
strategy because the firms
(A) a SWOT analysis
operations are expanded
beyond primary business. (B) Goal formulation
Reasoning (R) : Vertical integration is (C) Marketing Research
the mixed empirical result to
(D) Strategy Formulation
ascertain whether the strategy
helps or hinders the performances.
Codes : 58. At which level in the company
(A) Both (A) and (R) are correct, should market oriented strategic
and (R) is the right explanation planning begin ?
of (A).
(B) Both (A) and (R) are correct, (A) Corporate level
but (R) is not the right (B) Functional level
explanation of (A).
(C) Marketing department level
(C) (A) is correct, but (R) is not
correct. (D) Strategic business limit
(D) (R) is correct, but (A) is not
correct.
59. Which of the following technique
55. In the context of strategic stimulates people to greater creativity
management, a stakeholder can be by meeting with others and
defined as : participating in organised group
(A) An individual or a group have
experiences ?
financial interest in the
organisation. (A) Brain writing
(B) An external individual or a (B) Gordon method
group that is able to impose
constraints on the organisation. (C) Brain storming session
(C) An internal group or individual (D) Big-dream approach
that is able to influence
strategic direction of the 60. Match the following :
organisation.
(D) An individual or group with an List – I List – II
interest in the organizations (Types of (Features)
activities and who seeks to Qualities)
influence them.
a. Physical i. Sharp memory
56. What are the stages 2, 3 and 4 of the
active strategic process ? b. Ethical ii. Coordinator
(A) Generate process, select c. Social iii. Personality
strategy, implement strategy d. Mental iv. Character
(B) Strategy selection, strategy
implementation, strategy Codes :
control a b c d
(C) Deliberate strategy, emergent
strategy, realized strategy (A) ii i iii iv
(D) Appraisal of strength and (B) iii iv ii i
weaknesses, choice of strategic
direction, strategic (C) ii i iv iii
implementation (D) iii iv i ii
Paper-III 18 J-17-14
61. Which of the following Bill was 65. Which one of them was not a
introduced in the Lok Sabha in 1985, Corporate Fraud ?
with the objective to make a special
provision to secure timely detection (A) Satyam Case
of sick and potentially sick
companies and for setting up a board (B) Abdul Karim Telgi case
of experts for speedy determination (C) Saradha Chit Fund
of the preventive ameliorative and
remedial measures ? (D) Ketan Parikh
(A) The Industrial Reconstruction
Bank of India Bill
(B) NABARD Bill 66. The first social audit in India to
(C) The Sick Industrial Companies evaluate role and success of company
(special provisions) Bill towards moral responsibility of
(D) None of the above
employees conducted by
62. Indicate the person who is considered (A) Birla Group (BALCO)
as pioneer in the herbal beauty care
in India and has achieved (B) Wipro
unprecedented international acclaim (C) Infosys
for her application of Ayurveda (the
ancient Indian ‘Science of Life’ (D) TISCO
based on herbal remedies) in
cosmetology and trichology :
(A) Sumati Morarji 67. SEBI asked entire group “A”
(B) Shahnaz Hussain companies to submit a corporate
(C) Yamutai Kirloskar
(D) Neena Malhotra governance report in addition to their
annual reports from the date :
63. Which of the following items is not
included in project cost estimation of (A) April 1, 2001
a new business ? (B) April 1, 2000
(A) Preference Dividend
(B) Margin money for working (C) January 13, 2006
capital (D) April 1, 2008
(C) Anticipated initial losses
(D) Pre-operative expenses

64. Which of the following is the main
function of State Financial Corporations ?
(A) Provide short-term finance to
large-sized industrial units
(B) Provide long-term finance to
small and medium sized
industrial units.
(C) Undertake variety of
promotional activities, like
preparation of feasibility
reports, conducting industrial
potential surveys, etc.
(D) Develop industrial estates for
providing land to a building
Entrepreneurs.
Paper-III
68. The practice of willingly hiding
relevant information by being
secretive and deceitful known as
_________, occur when organization
punishes individual who is open and
honest and rewards the one who has
unethical behaviour.
(A) ‘Window Dressing’
(B) ‘Counter Norms’
(C) ‘Stone-walling’
(D) None of the above
20 J-17-14
69. Corporate Governance Committee 73. Statement I : ‘Free trade’ leads to
appointed on May 7, 1999 was specialisation and thereby to
headed by increased output.
Statement II : Import restrictions
(A) Aditya Birla are both long term and short
(B) Kumar Mangalam Birla term measures of balances of
payment adjustments.
(C) Rajendar Sachar
Codes :
(D) J.S. Mehta (A) Statement I is true, but II is
false.
(B) Statement II is true, but I is
70. The term ‘Corporate Governance’ false.
comes closest to (C) Both the statements I and II are
(A) Corporate Management false.
(D) Both the statements I and II are
(B) Corporate Administration
true.
(C) Corporate Planning
(D) Corporate System 74. In terms of the increasing
competitions, among the MNCs, rank
the followings in the ascending order :
71. The highest amount of FDI in India (i) Mobile Technology
comes from (ii) Business Intelligence
(iii) Cloud Computing
(A) Japan (iv) Social Media
(B) U.S.A. (A) (i), (ii), (iii) and (iv)
(C) Indonesia (B) (iv), (iii), (ii) and (i)
(C) (iv), (i), (ii) and (iii)
(D) Mauritius (D) (i), (ii), (iv) and (iii)

75. Statement I : ‘Trade creation’

72. ‘Free trade’ means
and ‘Trade Diversion’ both,
(i) Opening different sectors for have welfare implications.
the FDI in flow Statement II : Regional partners
(ii) greater competition which, in should be competitive, and not
complementary, for the
turn, enhances efficiency
purpose of the most efficient
(iii) Development of new industries use of economic resources
(iv) Incentives for Imports and within a Customs Union.
Codes :
Exports
(A) Statement I is true, but
Codes : statement II is false.
(A) All (i), (ii), (iii) and (iv) (B) Statement II is true, but
statement I is false.
(B) Both (i) and (ii) (C) Both the statements I and II are
(C) Only (ii) true.
(D) Only (i) (D) Both the statements I and II are
false.

Paper-III 22 J-17-14
 MANAGEMENT
PAPER – III
Note : This paper contains seventy five (75) objective type questions of two (2) marks each. All
questions are compulsory.

1. A decrease in supply will have the greatest effect on price, when the product’s demand is
(A) Elastic (B) Inelastic
(C) Perfectly elastic (D) Unitary elastic

2. For a production firm, the pecuniary economies arise from which one of the following
sources ?
(A) Large scale production
(B) Purchasing and market economies
(C) Indivisibility of factor inputs
(D) Learning economies of workers and managers

3. Your firm is selling 1,000 units at a price of 10 per unit. The firm’s total explicit cost is
8,000. The firm’s implicit cost is 1,000 and the opportunity cost of your time in
managing the firm is 1,000. In the above situation, which one of the following is true ?
(A) Accounting profit is 0.
(B) Economic profit is less than the accounting profit
(C) Marginal cost is 1,000
(D) Economic profit is 1,000

4. Which one of the following is the correct expression for the Fisher equation, where
n = the annual nominal interest rate
r = the annual real interest rate
P = the expected annual inflation rate
(A) (1 + n) = (1 + r) (1 + P) (B) (1 + r) = (1 + P) (1 + n)
(C) (1 + P) = (1 + n) (1 + r) (D) (1 – r)2 = (1 + P) (1 + n)

5. Which of the following best describes the financial crisis of 2008 ?

(A) Liberal availability of mortgages
(B) Poor standard of lending to buy houses.
(C) An increase in asymmetric information, severe adverse selection and moral hazards
in financial markets.
(D) All of the above.
Paper-III 2 D-17-14
6. In _________ grapevine, a person transmits the information to a few selected people and
some of them pass it on to select others.
(A) Cluster (B) Gossip
(C) Probability (D) ‘Single-strand chain’

7. Match the items of List – I with those of List – II :

List – I List – II
i. The extent to which other people a. Consensus
behave in the same manner as the
person being judged
ii. The extent to which the person being b. Consistency
judged acts the same way at other
times.
iii. The extent to which a person behaves c. Distinctiveness
in the same manner in any other
context
iv. The tendency to think about d. Rebound effect
something when we try intentionally
not to think about it
Codes :
i ii iii iv
(A) a b c d
(B) d c b a
(C) d a c b
(D) d b c a

8. Match the items of List – I with those of List – II :

List – I List – II
a. The tendency to draw a general impression about an i. Golem effect
individual on the basis of a single characteristic.
b. A belief that all members of specific groups share ii. Halo effect
similar traits and are prone to behave the same way.
c. A form of self-fulfilling prophecy in which believing iii. Pygmalion effect
something can make it come true.
d. An instance of self-fulfilling prophecy in which iv. Stereotype
people holding low expectations of another tend to
lower that individual’s performance.
Codes :
a b c d
(A) i ii iii iv
(B) ii i iii iv
(C) ii i iv iii
(D) ii iv iii i
Paper-III 4 D-17-14
9. Which stage of the conflict process entails ‘Perceived conflict’ and ‘Felt conflict’ ?
(A) Cognition and personalisation (B) Intensions
(C) Behaviour (D) Outcomes

10. Sensitivity training, an important OD technique, is also known as

(A) Core group training
(B) T-groups
(C) X-group training
(D) Y-group trainings

11. Indicate the correct statement / statements from among the ones given below :
(i) The burden of proof of misconduct lies on the defendant.
(ii) The chargesheeted worker is entitled to examine the evidence of management.
(iii) For a grave misconduct, an employee can be punished twice.
(iv) The chargesheeted worker has a right to present such witnesses one whom he/she
has faith.
Codes :
(A) (i) and (iii) are correct (B) (i) and (iv) are correct
(C) (ii) and (iii) are correct (D) (ii) and (iv) are correct

12. Which of the following is not an effective source of recruitment for a middle-level
managerial position ?
(A) Company website (B) In-campus interview
(C) ‘Head hunters’ (D) Newspapers

13. Which of the following is not a responsibility of the mentor ?

(A) Enabling promotion
(B) Enabling skill development
(C) Building confidence
(D) Being a role model for the Mentee

14. Which of the following is not an individual method of performance appraisal ?

(A) 360-degree appraisal
(B) Management By Objective (MBO)
(C) Behaviourally Anchored Rating Scale (BARS)
(D) Checklist method
Paper-III 6 D-17-14
15. Choose the correct statements :
(a) Job-evaluation is used to determine compensation
(b) Job-induction is not a type of training
(c) Job-enrichment is referred to as vertical job loading
(d) Job-enlargement is referred to as vertical job loading
(A) (a) and (d) are true. (B) (b) and (d) are true.
(C) (c) and (a) are true. (D) (c) and (d) are true.

16. Which of the following is an example of ‘Meta-Competency’ ?

(A) Empowering the employees
(B) Managing work performance
(C) Leading others
(D) Fostering Diversity

17. The Constitution of India provides for Worker’s Participation in Management under
which article ?
(A) Article 38 (B) Article 43
(C) Article 39 (D) Article 47

18. Which of the following is a career path pursued by employees who seek variety and
independence and may not be designed by the organization ?
(A) Expert career path (B) Network career path
(C) Transitory career path (D) Spiral career path

19. Match the industry/profession with the pay plan most appropriate for it :
List – I List – II
a. Process-Basel Manufacturing i. Skill-based pay
b. Automobile ii. Fixed pay
c. University Teaching iii. Individual-based pay
d. Software Development iv. Job-based pay
Codes :
a b c d
(A) iii iv ii i
(B) ii i iv iii
(C) iv iii ii i
(D) i ii iii iv

Paper-III 8 D-17-14
20. An act that provides for certain benefits to employees in case of sickness, maternity and
employment injury is
(A) The Employer Liability Act, 1938
(B) The Employees’ Compensation Act, 1923
(C) The Payment of Wages Act, 1948
(D) The Employees’ State Insurance Act, 1948

21. Strikes conducted by workers or employees without the authority and consent of unions is
called
(A) Picketing (B) Economic strike
(C) Wildcat strikes (D) General strikes

22. Consider the following statements regarding bonds and examine which is/are correct
statement/s.
Statement I : Current yield of bond is equal to annual interest divided by prevalent
value of bond.
Statement II : Zero-coupon bonds are issued at premium and redeemed at par.
Statement III : The present value of the bond is the total of the discounted value of
annual interest payments and the discounted value of maturity value.
Select the correct code :
(A) Only Statement I is correct. (B) Statements I and II are correct.
(C) Statements I and III are correct. (D) Statement II and III are correct.

23. The problem of conflict in ranking between NPV and IRR, arising on account of
difference in the pattern of cash flows with reference to time can be resolved by
(A) Modified NPV only (B) Modified IRR only
(C) (A) and (B) both (D) Decision tree

24. Assertion (A) : According to the traditional view of capital structure a firm has an
optimal capital structure that occurs when WACC is minimum.
Reason (R) : This approach clearly implies that WACC decreases only within the
reasonable limit of financial leverage (D/E) and reaching to the
minimum level, it starts increasing with financial leverage (D/E).
Select the correct code :
(A) (A) and (R) both are correct.
(B) (A) is correct but (R) is incorrect.
(C) (R) is correct but (A) is incorrect.
(D) (A) and (R) both are incorrect.
Paper-III 10 D-17-14
25. Match the types of factoring given in List – I with its characteristics given in List – II :
List – I List – II
i. Full-service non-recourse a. Clients are not informed about the
factoring factoring arrangement
ii. Full-service resource factoring b. Bad-debt protection to client
iii. Bulk factoring c. No bad-debt protection to client
iv. Non-notification factoring d. Client continues to administer
credit and to operate sales ledger
Codes :
i ii iii iv
(A) a b c d
(B) b c d a
(C) c d a b
(D) d a b c

26. In order to escape a hostile take-over, the management of a company makes an offer to a
friendly company for acquisition. This defensive technique is known as
(A) Crown jewels (B) White knight
(C) Green mail (D) Golden parachutes

27. The variance of rates of return of assets or securities using historical returns can be
derived as
n n
1 – 1 –
(A) n – 1 . (Rt – R)2 (B) n – 1 . (Rt – R)
t=1 t=1
n
–
. (Rt – R)2
n
t=1 1 –
(C) (D) . (Rt2 – R2)
n–1 n–1
t=1
where R indicates the rate of return of respective year (t), out of total period of holding (n)
–
and R is the average rate of return.

28. Consider the following statements regarding the assumptions of Capital Asset Pricing
Model :
I. All investors have the same expectations about expected returns and risks of
securities.
II. Lending and borrowing rates of all investors are different.
III. Investors expect highest returns for highest level of risk.
IV. Share prices reflect all available information.
V. Individual investors are not able to affect the prices of securities.
Select the correct code :
(A) I and II only (B) I, II and III only
(C) I, III and V only (D) I, IV and V only
Paper-III 12 D-17-14
29. The firm’s average rate of return is 15%, its cost of capital is 10% and earnings per share
is 10. If the pay-out ratio is 40%, 60% and 90%, the value of share according to
Gordon’s model will be
(A) 105, 100 and 90, respectively
(B) 130, 120 and 105, respectively
(C) 400, 150 and 105.88, respectively
(D) 440, 160 and 120, respectively

30. When a firm uses more short-term financing, than that required to finance, the temporary
or variable current assets, the firm is said to follow :
(A) a conservative approach of financing
(B) an aggressive approach of financing
(C) a matching approach of financing
(D) a moderate approach of financing

31. When the total of both the sides of balance sheet is converted to 100 and each item is
shown as percentage of the total, and this exercise is carried out for more than two years,
this analysis is known as
(A) Index Analysis (B) Trend Analysis
(C) Du Pont Analysis (D) Common-size Analysis

32. If the company has acquired three months’ option to buy 3000 barrels of oil, at an exercise
price of $ 50 and if the premium is $ 0.60 per barrel and it at the time of option expiry oil
price is $ 52 per barrel, the net pay-off to the company will be
(A) $ 1800 (B) $ 4200
(C) $ 6000 (D) $ 7800

33. Consider the following statements :

1. The ultimate level of market segmentation leads to “one-to-one” marketing.
2. Any attempt to target marketing to children or minorities is discriminatory and
unethical.
3. The internet as a medium of adverting has high selectivity and cost.
4. A ‘Push’ strategy is better suited for directing the marketing effort towards final
consumers.
Indicate the correct answer :
(A) Statements 1 and 4 are true and others are not.
(B) Statements 1 and 2 are true and others are not.
(C) Statement 1 is true and other are not.
(D) All Statements are false.
Paper-III 14 D-17-14
34. Producers of convenience goods typically prefer
(A) Exclusive distribution (B) Intensive distribution
(C) Selective distribution (D) Intermittent distribution

35. A market penetration pricing strategy is suitable when

(A) lower price encourages actual competition.
(B) the demand of the product is inelastic.
(C) the production and distribution costs fall with increasing production.
(D) a high price discourages competitors from entering the market.

36. Which one of the following is not included in the distribution logistics ?
(A) Order processing (B) Inventory
(C) Warehousing (D) Wholesaler

37. According to the ‘two-step flow’ concept, messages should be targeted to

(A) opinion leaders (B) the mass audience
(C) the upper class (D) unsegmented audience

38. 1. The last stage in the personal-selling process is ‘closing the sale’.
2. In India, companies spend much less on post-testing than on pre-testing of
advertising.
3. Market targeting is currently the most popular marketing approves.
4. According to RL Stevensen, everybody lives by selling something.
The true statements are
(A) All of the above (B) None of the above
(C) Only 2 and 3 (D) only 2, 3 and 4

39. The attempt to build and/or maintain a good “corporate image” is referred to as
(A) Advertising (B) Public Relations
(C) Personal selling (D) Sales promotion

40. The most significant advantage in the use of newspaper as an advertising medium is
(A) Audience selectivity (B) Flexibility
(C) High attention (D) National market coverage
Paper-III 16 D-17-14
41. The promotional tool which is useful during the decline stage of product life cycle is
(A) Advertising (B) Personal selling
(C) Public relation (D) Sales promotion

42. The most important factor in selecting advertising media is

(A) Media cost
(B) Media preference of target audience
(C) Nature of the product
(D) Type of message

43. The most common form of organizing the marketing department is based on
(A) Customer (B) Functions
(C) Geography (D) Product

44. The time elapsed between two successive outputs from a process that is continuously
operating in a given period of time is known as
(A) Throughput Time
(B) Cycle time
(C) Lead time
(D) Bottle neck removal time

45. The collective set of tools and techniques used to develop a quality assurance system
when business processes show variations, is known as
(A) Quality Assurance Process
(B) Quality Management System
(C) Statistical Quality Control
(D) Statistical Process Control

46. A firm’s demand for an item of raw material this year was 1000 units. The price of the
item will be double the next year. All other information, will remain unchanged. What
will be new EOQ ?
(A) 500 units (B) 707 units
(C) 2000 units (D) None of the above
Paper-III 18 D-17-14
47. Consider the following statements :
1. A redundant constraint in an LP problem results in an infeasible solution.
2. A degenerate solution is totally meaningless to a manager.
3. The EOQ model of inventory management can be applied for determining the
optimal production lot size.
4. LP technique can not be used for finding the scope for increasing the price, without
disturbing the optimal product mix.
Codes :
(A) Only statements 1 and 3 are true.
(B) Only statement 3 is true.
(C) Only statements 1 and 2 are true.
(D) None of the statements is true.

48. Consider the following statements :

1. A transport problem is said to be a balanced problem if the number of origins and
destination is equal.
2. Dual theory of simplex method of LP can be used to solve a game theory problem.
3. CPM is often referred to as time-cost trade-off.
4. Time is not the only variable in PERT.
5. In a single-channel queuing models, if µ = λ, infinite queue will build up.
Indicate the correct code :
(A) Statements 2, 3 and 4 are true, other are not.
(B) Statements 2, 3 and 5 are true, other are not.
(C) Statements 1, 2 and 3 are true, other are not.
(D) All the statements are false.

49. If, on an average, ‘A’ completes 40 tasks with a standard deviation of 5, ‘B’ completes
160 tasks with a standard deviation of 15 and ‘C’ completes 120 tasks with a standard
deviation of 8, their order when arranged on the basis of consistency is
(A) C, A and B (B) A, B and C
(C) C, B and A (D) B, A and C

50. Which of the following is correct to compute the value of coefficient of determination
under simple regression model ?
– –
a Σy + b Σxy – n y2 a Σy + b Σxy + n y2
(A) r2 = (B) r2 =
Σ y2 – n y–2 Σ y2 + n y–2
– –
a Σy – b Σxy – n y2 a Σy – b Σxy + n y2
(C) r2 = (D) r2 =
Σ y2 – n y–2 Σ y2 + n y–2
Paper-III 20 D-17-14
51. Which of the following is not a characteristic of normal probability distribution ?
(A) The curve has a single peak.
(B) The mean, median and mode lie at the centre of the normal curve.
(C) The two tails of the normal probability distribution never touch the horizontal axis.
(D) It is a distribution of discrete random variable.

52. Which of the following Online Analytical Processing (OLAP) functions refers to the
process to choose the dimensions of analysis to suit the analyst’s viewpoints ?
(A) Clustering (B) Drilling
(C) Scattering (D) Slicing and Dicing

53. Which of the following is not a Microprocessor ?

(A) 8080 (B) 68020
(C) Pentium Core Duo 8600 (D) 2020

54. The Grand stragtegy matrix is a powerful tool for formulating alternative strategies. In this
model, all strategies are grouped into four quadrants. The dimensions of this matrix are
(A) Market growth and market share of the firm
(B) Market growth and life cycle of the firm
(C) Market growth and competitive position of the firm
(D) Market growth and industry forecast

55. Which of the following activities is not involved in ‘Vertical Disintegration’ ?

(i) Segregation of value-chain activities
(ii) Re-organisation of value-chain activities
(iii) Outsourcing
Codes :
(A) (i) and (ii) (B) (i) and (iii)
(C) (ii) and (iii) (D) All the three

56. Which among the following corporate governance theories make pessimistic assumptions
about the self servicing motives of company executives ?
(A) Agency theory
(B) Stack-holder theory
(C) Stewardship theory
(D) Resource Dependence theory
Paper-III 22 D-17-14
57. “Mature Industries tend to go out of own country and into low-cost assembly locations.”
Which of the following theory/model explain this ?
(A) Adam Smith’s theory of absolute advantage
(B) Porter’s diamond model
(C) Raymond Vermon’s international product lifecycle theory
(D) Heckscher-Ohlin theory of international trade

58. Which of the following is not a subsidiary body of General council of WTO ?
(A) Council for trade in goods
(B) Council for trade-related aspects of intellectual property rights
(C) Council for trade in services
(D) Council for settlement of disputes

59. Which of the following is not a misconception about entrepreneurship ?

(A) ‘Successful entrepreneurship needs only a great idea.’
(B) ‘Entrepreneurship is an easy task.’
(C) ‘Entrepreneurship is found only in small business.’
(D) ‘Entrepreneurial ventures and small business are two different things.’

60. Pichot suggested three roles for the intrapreneur in promoting innovation.
Indicate the correct answer.
(A) Inventor, innovator and sponsor
(B) Inventor, product champion and sponsor
(C) Team builder, information source and advocate
(D) Mould breaker, change agent and sponsor

61. In which type of entrepreneurship formal structural ties are loosened and champions are
given the freedom to pursue opportunities both for the organization and through market ?
(A) Administrative (B) Acquisitive
(C) Opportunistic (D) Incubative

62. The small scale sector is the __________ largest employer of human resources in the
country.
(A) Single (B) Second
(C) Third (D) Fourth
Paper-III 24 D-17-14
63. Which of the following is not a promotional measure undertaken by the central
government to promote small enterprises ?
(A) Supply of machinery on hire-purchase terms
(B) Technical consultancy and financial assistance
(C) Land available at cheaper rates for setting up a unit
(D) Assistance for domestic marketing as well as export

64. At which stage of ethical consciousness, there is a shift in focus from ‘business’ to ‘ethics’ ?
(A) Corporate social responsibility
(B) Long-term profit maximisation
(C) Stakeholders concept
(D) Short term profit maximisation

65. Statement I : Corporate values seek to ensure a consistency of conduct across the
entire organisation.
Statement II : Corporate values directly relate to organisation’s risk management
strategies and support reputation and credibility.
Codes :
(A) (I) and (II) both are incorrect.
(B) (I) and (II) both are correct.
(C) (I) is incorrect and (II) is a correct statement in isolation.
(D) (I) is correct, but (II) is not the right explanation of (I).

66. Which of the following is related to the recycling of waste and paper undertaken by an
organization ?
(A) Corporate policy towards sustainability
(B) Corporate governance of an organisation
(C) Social responsibility of an organisation
(D) Corporate values of an organisation

67. The financial institutions have a major say in which of the following corporate governance
model ?
(A) Japanese model (B) Anglo-American model
(C) German model (D) Indian model

68. The four types of social responsibility include :

(A) Legal, Philanthropic, Economic and Ethical
(B) Ethical, Moral, Social and Economic
(C) Philanthropic, Justice, Economic and Ethical
(D) Legal, Moral, Ethical and Economic
Paper-III 26 D-17-14
69. From the following statements relating to WTO agreements, choose the statements that
are correct :
Statement I : Diversity in technical regulations and industrial standards among
countries leads to the introduction of TBT (Technical Barriers to trade)
Agreements.
Statement II : The aim of WTO agreements on customs valuation is to ensure a fair,
uniform and neutral system for the valuation of goods for customs
purposes.
Statement III : The agreement on Trade Related Investment Measures (TRIMs) applies
only to measures that affect trade in goods.
Codes :
(A) Statements I and II only are correct.
(B) Only statement I is correct.
(C) Only statements II and III are correct.
(D) All the statements are correct.

70. If the spot rate of US dollar is 60 and one mouth forward rate is 62, the forward rate
premium (p) will be
(A) 40% (B) (–)40%
(C) 33% (D) (–)33%

71. For which of the following sectors, the FDI cap/equity is 100% ?
i. Mining including exploration and mining of diamonds.
ii. Defence production
iii. Drugs and pharmaceuticals
iv. Insurance
v. Banking
vi. Power (except atomic energy)
Codes :
(A) i, iii, iv and vi (B) i, iii, iv and v
(C) i, ii and vi (D) i, iii and vi

72. As per the Foreign Trade (Development and Regulation) Act, 1992, who advises the
Central Government in the formulation of Export and Import Policy ?
(A) Chief controller of Imports and Exports
(B) Director General of Foreign Trade
(C) Director General of Commercial Intelligence
(D) Chief Controller of Foreign Trade
Paper-III 28 D-17-14
73. According to Eclectic theory of Foreign Direct Investment (FDI), the motivation behind
FDI is/are
(A) Capital and labour adequacy
(B) Raw material and labour adequacy
(C) Ownership, location and internalisation
(D) Labour, capital market and internalisation

74. The following statements are related to patents. Using code indicate the statements that are
not correct :
Statement I : Patent is aimed to encourage economic and technological development.
Statement II : Patent can be protected only for a limited period.
Statement III : The law of patent is international in its operation.
Statement IV : When the patent right expire, the technology becomes public property.
Codes :
(A) Statements II, III and IV are not correct.
(B) Statements II and IV are not correct.
(C) Statement III is not correct.
(D) Statement IV is not correct.

75. Which of the following statements are not correct in relation to pre-shipment credit in
foreign currency ?
Statement I : It is a foreign currency loan available, both, to the importers and
exporters.
Statement II : It is self liquidating in nature and can be liquidated by purchasing/
discounting of bills.
Statement III : Refinance from RBI is available to banks against pre-shipment credit in
foreign currency.
Statement IV : The interest rare shall not exceed 1.75% above six months, LIBOR for
the initial period of one month.
Codes :
(A) Statements I, II and III are not correct.
(B) Statements I, III and IV are not correct.
(C) Statement II and IV are not correct
(D) Statement II and III are not correct.
____________

Paper-III 30 D-17-14
 MANAGEMENT
PAPER - III

Note : This paper contains seventy five (75) objective type questions of two (2) marks each.
All questions are compulsory.

1. The demand function for commodity X, is QD5300220P; where P is the price in rupees per
unit and QD is the quantity demanded in units per period. Which of the following is the
price level at which total revenue of a firm facing this demand function is maximised ?

(1) 8.0 (2) 7.5 (3) 10.5 (4) 12.5

2. Match the production functions List - I with the return to scale List - II.

List - I List - II

(Production function) (Return to scale)

(a) Q510 K0.5L0.4E0.15M0.1 (i) increasing

(b) Q512 K0.5L0.5 (ii) constant

(c) Q5100 K115 L (iii) decreasing

(d) Q540 K0.3L0.5

Indicate the correct answer :

(a) (b) (c) (d)

(1) (ii) (ii) (i) (i)

(2) (i) (i) (ii) (ii)

(3) (ii) (i) (i) (iii)

(4) (i) (ii) (ii) (iii)

3. It costs a firm ` 90 per unit to produce product A, and ` 60 per unit to produce B individually.
If the firm can produce both products together at ` 160 per unit of product A and B, this
exhibits signs of :

(1) economies of scope (2) diseconomies of scale

(3) diseconomies of scope (4) economies of scale

J-1715 !J-1715-PAPER-III! 2 Paper-III

4. In the context of Prisoner’s dilemma, which one of the following is correct ?

(1) rational choices can lead to bad outcomes

(2) rational choices can lead to good outcomes

(3) co-operation can lead to sub - optimal results

(4) none of the above

5. Find the most appropriate sequence of life-cycle of price for a product, from the initial stage
to the mature stage.

(1) Target price®penetration price®value - based price®limit price®niche price

(2) Penetration price®limit price®value - based price®target price®niche price

(3) Penetration price®target price®limit price®value - based price®niche price

(4) Penetration price®niche price®target price®limit price®value - based price

6. A public works project is proposed that has total present - worth benefits of ` 75 million and
total present-worth cost of ` 55 million. In deliberating this proposal, some members of the
Municipal Board have suggested that the project has a total present-worth disbenefits of ` 15
million; other members feel that ` 15 million should be treated as a cost. What will be the
benefit cost ratio and net benefits value while considering the disbenefits as a cost ?

(1) 1.70 and ` 10 million (2) 1.57 and ` 5 million

(3) 1.60 and ` 6 million (4) 1.07 and ` 5 million

7. The ability to integrate new ideas with the existing processes and to innovate on the job is a
crucial __________ for today’s managers.

(1) Conceptual skill (2) Human skill

(3) Soft skill (4) Technical skill

8. An individual’s involvement in work primarily indicates his/her :

(1) Attitude (2) Behaviour (3) Motivation (4) Perception

J-1715 !J-1715-PAPER-III! 4 Paper-III

9. As per Lewin’s Three - Step Change Model, changing to overcome the pressures of both
individual resistance and group conformity is termed as :
(1) Movement (2) Refreezing (3) Restraining (4) Unfreezing

10. Out of the following, identify the four major functions which communication serves within
a group or organisation :
(a) Control
(b) Co-ordination
(c) Emotional expression
(d) Information
(e) Motivation
(f) Organisation
Codes :
(1) (a), (b), (d) and (f) (2) (b), (d), (e) and (f)
(3) (a), (b), (d) and (e) (4) (a), (c), (d) and (e)

11. The conflict process usually has __________.

(1) Three stages (2) Four stages (3) Five stages (4) Seven stages

12. The __________ proposes that the effective group performance depends on the proper match
between the leader’s style and the degree to which the situation gives the leader control.
(1) Behavioural approach
(2) Fiedler contingency model
(3) Leader - member exchange theory
(4) Trait Approach

13. __________ is a process of system wide change, designed to make an organisation more
adaptive.
(1) Change Management
(2) Refreezing
(3) Business Process Reengineering
(4) Organisation Development

J-1715 !J-1715-PAPER-III! 6 Paper-III

14. __________ is a profile of job holders department-wise and offers a snapshot of who will
replace if there is a job opening.

(1) Career plan (2) Replacement chart

(3) Promotion graph (4) Selection plan

15. Following steps are undertaken for developing a workforce score card.

(a) Identify critical and carefully defined outcome measures.

(b) Translate the measures into specific actions and outcomes.

(c) Identify high and low performing employees.

(d) Develop and communicate detailed description of what is expected.

(e) Develop supporting HRM and measurement systems.

What is the correct chronological order of these steps ?

(1) (a), (b), (c), (d) (2) (a), (b), (d), (c) (3) (a), (b), (d), (e) (4) (a), (c), (d), (e)

16. Which of the following statements are not correct ?

(a) Pay of an employee includes actual money that employee receives in exchange of his
work.

(b) Job evaluation provides a basis for measuring individual performance.

(c) Human Relations Theory respects formal institutionalisation.

(d) Minimum wages are not guaranteed under incentive plan.

(e) Job enrichment amounts to expanding vertical and horizontal dimensions of a job.

(1) (a) and (d) (2) (c) and (d) (3) (d) and (e) (4) (a) and (e)

17. Under which method of performance appraisal many evaluators join together to judge
employee’s performance in several situations with the use of a variety of criteria ?

(1) Graphic Rating Scales (2) Critical Incident

(3) Assessment Centre (4) MBO

J-1715 !J-1715-PAPER-III! 8 Paper-III

18. According to ‘The Hot Stove Rule’ propounded by Douglas Mcgregor, a sound disciplinary
system in an organisation does not includes :

(1) Advance warning (2) Immediacy of action

(3) Immediacy in retrenchment (4) Impersonal

19. What is not required for termination of employees under the Industrial Disputes Act,
1947 ?

(1) Seek prior approval of the appropriate Government

(2) Seek prior consent of the employees

(3) Hold consultation with employees

(4) Pay compensation to employees

20. Which one of the following is not a form of Government intervention in industrial relations ?

(1) Assurance of decent working conditions

(2) Provision of income security

(3) Facilitating social dialogue

(4) Protection of child labour

J-1715 !J-1715-PAPER-III! 10 Paper-III

21. With respect to collective bargaining match the items in List - I with those in List - II, using
the codes at the end of the items.
List - I List - II
(a) Win - Lose (i) Winning is everything
(b) Lose - Win (ii) Nothing for nothing
(c) Lose - Lose (iii) Everything for everything
(d) Win - Win (iv) Relationship is paramount
Codes :
(a) (b) (c) (d)
(1) (ii) (i) (iii) (iv)
(2) (i) (iv) (ii) (iii)
(3) (i) (ii) (iii) (iv)
(4) (iv) (iii) (ii) (i)

22. ‘A fair day’s wage for a day’s work’ is the motto of ___________ conceptualisation concerning
Trade Union movement.
(1) Karl Marxian notion of class conflict
(2) Socialist pattern of society
(3) American capitalist system
(4) Gandhian concept of Trusteeship

23. In case where a company is likely to have the supernormal growth for a limited finite period
and the normal growth thereafter, the value of the share can be computed as :
n D 0 (1 1 g s )t
(a) P0 5 ∑ (1 1 k e )t
t5 1

a D n (1 1 g N )t 2 n
(b) P0 5 ∑ (1 1 k e )t
t5 n1 1

Dn 1 1
(c) P0 5
k e2g N

Dn 1 1  1 
P0 5
(d) k e2g N ( 1 1 k )n 

 e 
Where gs5supernormal growth rate,
n5number of years for supernormal growth rate
gN5normal growth rate, P05price of share at time 0,
t5year, D5Dividend, ke5cost of equity
Select the correct code :
(1) Only (a) (2) Sum total of (a) and (b)
(3) Sum total of (b) and (c) (4) Sum total of (c) and (d)

J-1715 !J-1715-PAPER-III! 12 Paper-III

24. Select the correct statement/s from the following :
Statement I : The slope of the NPV profile reflects how sensitive the project is to discount
rate changes.
Statement II : To find total NPV of more than one projects, their NPV cannot be added.
Statement III : The certainty equivalent coefficient applies adjustments to both, the
cash flows (in the numerator) and the discount factor (in the denominator).
Statement IV : The risk - adjusted discount factor applies adjustment for risk only to the
discount factor (denominator).
Codes :
(1) Only statement I is correct
(2) Statements II and III are correct
(3) Statements III and IV are correct
(4) Statements IV and I are correct

25. EBIT - EPS indifference point is the level of :

(1) EBIT that produces the same level of EPS for two alternative capital structures.
(2) EBIT that maximises EPS
(3) EPS that optimises EBIT
(4) Capital structure that does not affect Kd

26. Let the face value of commercial paper be denoted by F.V., net amount realised from the
commercial paper be NAR, maturity period of commercial paper be MP. The effective
pre - tax cost of commercial paper shall be :

(F.V. 2 NAR) 1
(1) F.V.2NAR (2) 3
NAR MP

(F.V. 2 NAR) (F.V. 2 NAR) 360

(3) 3 360 (4) 3
NAR NAR MP

27. When the target company uses the tactic of divestiture, to defend itself from a hostile takeover,
it is said to sell the :
(1) Crown jewels (2) Green mail
(3) Golden parachutes (4) White knight

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28. The average spread between the cost of goods sold and the sales revenue is indicated by :

(1) Operating Expense ratio (2) Gross Profit ratio

(3) Net Profit ratio (4) Return on Equity

29. If the rate of return on investment opportunity is likely to be 15 percent, the opportunity cost
of capital is 10 percent, the earnings per share is ` 10 and if the pay-out ratio is 40 percent,
the price of share according to Walter Model will be :

(1) ` 40 (2) ` 130 (3) ` 148 (4) ` 400

30. If the total cash requirement of a company is ` 2 crore next year, the opportunity cost of
funds is 15 percent per annum and the cost of conversion from securities to cash per transaction
is ` 150, the optimum cash balance as per Baumol’s Model will be :

(1) ` 2 lakhs (2) ` 4 lakhs (3) ` 20 lakhs (4) ` 40 lakhs

31. An Indian company is importing machine at a price of $ 5,00,000, payable after six months.
The current exchange rate is ` 63 per US $. The forward contract for six months is available
@ ` 64 per US $. If the rate turns out to be ` 64.25 per US $, the net gain to the importer in
case he has entered into contract will be :

(1) $ 1,25,000 (2) $ 2,50,000 (3) $ 5,00,000 (4) $ 6,25,000

32. If rF and rD are the interest rates of a foreign country and domestic country, respectively, and
if SF/D and fF/D are spot exchange rate and forward exchange rate between the countries F
and D, the interest rate parity is indicated by :

( 1 1 rD ) fF/D ( 1 1 rF ) S F/D
(1) 5 (2) 5
( 1 1 rF ) S F/D ( 1 1 rD ) fF/D

( 1 1 rF ) fF/D
(3) 5 (4) None of the above
( 1 1 rD ) S F/D

J-1715 !J-1715-PAPER-III! 16 Paper-III

33. Consider the following statements :
(a) Brand equity is essentially the same as brand valuation.
(b) Market segmentation and product differentiation are alternative marketing strategies.
(c) Durable goods normally require less personal selling, after sales service and seller
guarantees, than the non-durable goods.
(d) Price discrimination in all forms is illegal in India.
Indicate the correct statements :
(1) (a) and (b) (2) (b) and (d) (3) Only (d) (4) None

34. A consumer consults the company websites to gather information about various models of a
car. Which type of source of information is he using ?
(1) Commercial (2) Experimental (3) Personal (4) Public

35. Consider the following statements :

(a) All marketing strategy is built on segmentation, targeting and positioning.
(b) A brand mantra must communicate both what a brand is and what it is not.
(c) Goal incompatibility is one of the major causes of conflict among distribution channel
members.
(d) Physical goods, services and stores can have a brand name, but ideas and people cannot.
Which of these statements are true ?
(1) All of them (2) (a) and (b) (3) (b) and (c) (4) (a), (b) and (c)

36. The practice of selling below cost, with an intention to destroying the competitor is referred
to as :
(1) Loss - leader pricing (2) Predatory pricing
(3) Price discrimination (4) Penetration pricing

37. After determining its pricing objectives, what is the next logical step a company should take
in setting its pricing policy ?
(1) Analyse its competitor’s cost, price and offer
(2) Determine the demand of the product
(3) Estimate the cost of the product
(4) Select the pricing method

J-1715 !J-1715-PAPER-III! 18 Paper-III

38. Marketers have traditionally classified products on the basis of three characteristics :
__________ , tangibility and use.

(1) availability (2) affordability (3) durability (4) necessity

39. Which one of the following can be legally protected ?

(1) Brand name (2) Trade Mark (3) Brand mark (4) Package

40. Which one of the following marketing practices is outside the purview of the Competition
Commission ?

(1) Exclusive dealing (2) Misleading advertising

(3) Predatory pricing (4) None of the above

41. The major advantage of the direct mail marketing is :

(1) High target - market selectivity (2) Low cost of transaction

(3) Privacy of the buyer (4) Speedy delivery

42. In this attack strategy, the marketer must back it with a stronger attack to beat the opponent.
Identify the strategy.

(1) Encirclement (2) Flank

(3) Frontal (4) Guerrilla

43. A ‘defective raw material’ causing major variation in quality characteristics is called :

(1) Chance cause of variation (2) Assignable cause of variation

(3) Acceptable cause of variation (4) Tolerable cause of variation

J-1715 !J-1715-PAPER-III! 20 Paper-III

44. Which of the following is the correct order for sequential design ?

(1) Product concept ® performance specifications ® Design specifications ®

Manufacturing specifications

(2) Manufacturing specifications ® Product concept ® Design specifications®

Performance specifications

(3) Product concept ® Design specifications ® Performance specifications ®

Manufacturing specifications

(4) Design specifications ® Performance specifications ® Product concept ®

Manufacturing specifications

45. Which of the following statements is not true in the context of demand forecasting ?

(1) The time frame indicates, how far into the future the demand is forecasted.

(2) A trend is gradual, long-term upward or downward movement of demand.

(3) A trend is intermittent, short term upward or downward movement of demand.

(4) Random variations are movements in demand that do not follow a definite pattern.

46. Consider the following statements :

(a) In the Game theory, the saddle point is the largest value in its row and the smallest in
its column.

(b) The classical EOQ model is very sensitive to changes in the variables.

(c) In LP problem, an optimal solution does not necessarily use all the limited resources.

(d) In PERT, it is assumed that the distribution of completion time for a project is normal
distribution.

Indicate the true answers.

(1) Statements (c) and (d) (2) Statements (a), (c) and (d)

(3) Statements (a), (b) and (d) (4) All are true

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47. Consider the following statements :

(a) When there is no saddle point in a competitive game, the players adopt mixed strategies.

(b) The EOQ model of inventory control can also be applied to the production process,
with appropriate modifications.

(c) If the price of an item of inventory increases, the EOQ will also increase proportionately.

(d) In an LP problem, an equation is more restrictive than an unequality.

Indicate the correct statements.

(1) All of the above (2) (a), (b) and (d)

(3) (a) and (b) (4) None of the statements is true

48. Consider the following statements :

(a) In the single - channel queuing model, if m5l, the queue length would be infinite.

(b) In the simplex solution procedure for an LP problem, the shadow prices of the resources
are identified with the variables which are included in the optimal solution.

(c) In the case of gradual receipt of the ordered quantity, the EOQ will be larger than the
EOQ in the case of instantaneous receipt.

(d) Time is the only variable in PERT

Indicate the correct answer.

(1) Statements (a) and (b) are true, others are not

(2) Statements (b) and (c) are true, others are not

(3) Statements (a), (c) and (d) are true, but (b) is false

(4) All the statements are true

49. A Random variable X has the following probability distribution :

X : 22 0 2

Probability : 0.25 0.50 0.25

The mean and variance of X shall be :

(1) 0.50 and 1 (2) 0 and 1 (3) 0.50 and 2 (4) 0 and 2

J-1715 !J-1715-PAPER-III! 24 Paper-III

50. Match the following, considering the state of conclusion for each of the situation at a50.05.
List - I List - II
(a) H0 : P12P250, Ha : P12P2 < 0; P50.0233 (i) reject H0
(b) H0 : P12P250, Ha : P12P2 > 0; P50.0672 (ii) accept H0
(c) H0 : P12P250, Ha : P12P2 ¹ 0; P50.0322 (iii) no decision
(d) H0 : P15P2 , Ha : P1¹P2 ; P50.0233
Codes :
(a) (b) (c) (d)
(1) (ii) (i) (i) (ii)
(2) (i) (iii) (i) (i)
(3) (ii) (iii) (ii) (i)
(4) (i) (ii) (ii) (i)

51. Which of the following is possible in a chi - square goodness - of - fit test ?
(1) The chi - square statistic is 0.
(2) The observed counts are not whole number.
(3) The probabilities specified in the null hypothesis sum to less than one.
(4) The degree of freedom are larger than the number of categories.

52. Match the following IT terminologies and functions supported by them.

List - I List - II
(a) Four - part numeric address (i) DNS
indicating a unique computer
location on the internet.
(b) A hierarchical system of servers (ii) Gopher
maintaining databases enabling
the conversion of domain names
of their IP address.
(c) Tool for retrieving and (iii) IP
transferring files from a
remote computer.
(d) A tool that enables the user (iv) FTP
to locate information stored on
Internet Servers through a series
of easy-to-use hierarchical menus.
Codes :
(a) (b) (c) (d)
(1) (i) (iii) (ii) (iv)
(2) (ii) (i) (iv) (iii)
(3) (iii) (iv) (i) (ii)
(4) (iii) (i) (iv) (ii)

J-1715 !J-1715-PAPER-III! 26 Paper-III

53. The language used to develop interactive 3D modelling on World Wide Web is called as :

(1) XML (2) JAVA (3) HTML (4) VRML

54. Software that stores credit card and other information to facilitate payment for goods on the
web :

(1) Electronic Cash (2) Digital Wallet

(3) Smart Card (4) Electronic Cheque

55. Pan Amsat developed a joint venture with Jsat Corporation to develop and send into orbit a
small satellite. Which type of alliance the above statement represents ?

(1) Diversifying Alliance (2) Franchising

(3) Synergistic Alliance (4) None of the above

56. Which of the following alternatives represents the Five - Forces Model of Competition
developed by Michael Porter ?

(1) Suppliers, buyers, competitive rivalry among firms in industry, product substitutes and
potential entrants.

(2) Employees, buyers, competitive rivalry among firms in industry, product substitutes
and potential entrants.

(3) Suppliers, buyers, employees, product substitutes and potential entrants.

(4) Buyers, employees, suppliers, product substitutes and potential entrants.

57. Who among the following has given the statement : “transition from single function focus to
a multi function focus is essential for successful strategic management”?

(1) Robert Grant (2) J.B. Barney (3) Igor Ansoff (4) Edgar Schein

58. __________ signals a strategic inflection point necessitating a radical strategic shift.

(1) Ambidexterity (2) Strategic Dissonance

(3) Stretch Targets (4) Organizational Adaptation

J-1715 !J-1715-PAPER-III! 28 Paper-III

59. Grand Strategy Matrix refers to __________.

(1) development of analysis for the strengths, weaknesses, opportunities and threats of
organisation

(2) development of strategic position and action evaluation

(3) development of strategy for plotting organization division in a schematic diagram

(4) development of a popular tool for formulating alternative strategies

60. Which one of the following is not an entrepreneurial competency ?

(1) Tolerance of ambiguity and uncertainty

(2) Motivation to excel

(3) External locus of control

(4) Self-efficacy

61. As per the RBI guidelines (November 2012), a MSE would be considered sick if any of the
borrowal account of the enterprise remains non-performing assets (NPA) for :

(1) Three months (2) Six months (3) Nine months (4) Twelve months

62. Which one of the following idea generation methods focusses on developing new ideas when
the individuals are unaware of the problem ?

(1) Gordon method (2) Checklist method

(3) Creative problem solving (4) Brain - storming

63. Which one of the following is not a part of the industry analysis for a business plan ?

(1) Analysis of competitors

(2) Market segmentation

(3) Distribution of the products/services

(4) Industry and market forecasts

J-1715 !J-1715-PAPER-III! 30 Paper-III

64. Which one of the following is an apex organisation under the union ministry of MSME engaged
in Training, Consultancy, Research and Publication to promote entrepreneurship ?

(1) NIESBUD (2) NIMSME (3) IIE (4) MGIRI

65. Which one of the following is true in case of an Intrapreneur ?

(1) He is a job provider

(2) He is independent in his operations

(3) He assumes risk and uncertainty

(4) He does not raise funds required for the enterprise

66. Which one of the following is not a principle of corporate Governance ?

(1) Transparency (2) Accountability (3) Feasibility (4) Responsibility

67. Match the items given in the List - I and List - II and suggest the correct code :

List - I List - II

(a) Ethics (i) Right code of behaviour for a group or profession

(b) Morality (ii) Prescribes right conduct for everyone

(c) Moral standard (iii) Needs some inclination to follow morality

(d) Meta Moral Standard (iv) Practical and pragmatic

Codes :

(a) (b) (c) (d)

(1) (i) (ii) (iii) (iv)

(2) (iii) (i) (ii) (iv)

(3) (ii) (i) (iv) (iii)

(4) (i) (ii) (iv) (iii)

J-1715 !J-1715-PAPER-III! 32 Paper-III

68. An approach to managing, where managers are guided by organisations shared values in
their management practices, is called :
(1) Greening of management (2) Value-based management
(3) Socially responsible management (4) Social impact management

69. The Gaia hypothesis was propounded in 1999 by :

(1) James Lovelock (2) Friedman
(3) Lord Keynes (4) Jean - Jacques Rousseau

70. Assertion (A) : When a corporation acts ethically and socially responsible in its business
decisions and strategic planning, then the corporation will be more
sustainable.
Reason (R) : Socially responsible corporate behaviour is increasingly seen as essential to
long-term survival of companies.
(1) Both (A) and (R) are true and (R) is the correct explanation
(2) Both (A) and (R) are true but (R) is not the correct explanation
(3) (A) is true, but (R) is false
(4) (A) is false, but (R) is true

71. Match the items given in List - I and List - II.

List - I List - II
(a) Beggar thy Neighbour (i) Having low factor of interdependence
Trade Policy
(b) Mercantilism Theory (ii) Having an advantage of earning a return on
knowledge assets
(c) Multi-Domestic Strategy (iii) Alleviating some domestic economic problem by
exporting to foreign countries
(d) Turnkey Project (iv) Propagates encouragement of exports and
discouraging imports
Codes :
(a) (b) (c) (d)
(1) (iii) (i) (ii) (iv)
(2) (iii) (ii) (i) (iv)
(3) (iii) (iv) (i) (ii)
(4) (iii) (i) (iv) (ii)

J-1715 !J-1715-PAPER-III! 34 Paper-III

72. The Most Favoured Nation status doesn’t necessarily refer to :

(1) Non-discriminatory treatment

(2) Same and equal economic treatment

(3) Same tariff rates applicable

(4) Uniform civil code

73. Which of the following organizations play an active role to prevent the contagion situation
of crisis, such as the Greek Sovereign debt crisis ?

(1) IMF (2) World Bank (3) WTO (4) UNCTAD

74. The whole channel concept for International Marketing is represented as :

(1) Seller → Seller’s Channels Channels Final

International → within foreign → between → Buyers
Marketing nations nations
Headquarters

(2) Seller → Seller’s Channels Channels Final

International → between → within → Buyers
Marketing nations foreign
Headquarters nations

(3) Seller → Channels Seller’s Channels Final

between → International → within → Buyers
foreign nations Marketing foreign
Headquarters nations

(4) Seller → Channels Channels Seller’s Final

between → within foreign → International → Buyers
foreign nations nations Marketing
Headquarters

J-1715 !J-1715-PAPER-III! 36 Paper-III

75. As a part of the WTO Guidelines, the Agreement on Agriculture (AOA) does not include :
(1) Direct payments to farmers are permitted.
(2) Indirect assistance and support to farmers including R and D support by Government
are not permitted.
(3) Domestic policies which directly affect production and trade have to be cut back.
(4) Least developed countries do not need to make any cuts.

-o0o-

J-1715 !J-1715-PAPER-III! 38 Paper-III

 MANAGEMENT
PAPER - III

Note : This paper contains seventy five (75) objective type questions of two (2) marks each.
All questions are compulsory.

1. The theory of sales (revenue) maximization subject to some predetermined amount of profit
was advanced by __________.
(1) K.W. Rothschild (2) Herbert Simon
(3) O.E. Williamson (4) William J. Baumol

2. Suppose the demand function for a commodity is given as :

Q550025P
Where ‘Q’ denotes quantity of demand and ‘P’ denotes price of the commodity. The point
price elasticity of demand at price ` 20 will be __________.
(1) 20.50 (2) 20.25 (3) 20.20 (4) 25

3. Suppose the demand and total cost functions for a monopoly firm are as follows :
Q510020.2P
P550025Q
TC550120 Q1Q2
What will be the profit maximization output ?
(1) 20 (2) 10 (3) 50 (4) 40

4. Statement (I) : The elasticity of factor substitution is formally defined as the percentage
change in the capital-labour ratio divided by the percentage change in the
marginal rate of technical substitution.
Statement (II) : Q55K0.5 L0.3 is a production function where Q5 output, K5units of capital
and L5 units of labour. This production function shows the application of
increasing returns to scale.
Codes :
(1) Both statements are correct.
(2) Both statements are incorrect.
(3) Statement (I) is correct while statement (II) is incorrect.
(4) Statement (I) is incorrect while statement (II) is correct.

5. Which one of the following is not an investment appraisal technique to incorporate risk and
uncertainty ?
(1) The Pay-off Matrix method
(2) Certainty - Equivalent approach
(3) Marginal Efficiency of Capital approach
(4) The Decision - Tree method

D-1715 !D-1715-PAPER-III! 2 Paper-III

6. Which one of the following is not the component of economic environment of business ?
(1) Income and its Distribution (2) Values and Ethics
(3) Business Cycles (4) Interest Rates

7. Assertion (A) : Taylor stressed on revival of interest in human resources at work by focussing
on increased production by rationalizing everything.
Reason (R) : He assumed that “workers want to earn maximum for minimum work”.
Codes :
(1) (A) is incorrect (R) is correct.
(2) (A) is correct and (R) is the right explanation of (A).
(3) (A) is correct but (R) is not the right explanation of (A).
(4) Both (A) and (R) are incorrect.

8. Give the correct order of stages in goal setting theory.

(1) Goal acceptance ® Goal definition ® Efforts ® Performance ® Reward ® Satisfaction.
(2) Goal definition ® Goal acceptance ® Efforts ® Performance ® Reward ® Satisfaction.
(3) Goal acceptance ® Goal definition ® Performance ® Efforts ® Rewards ® Satisfaction.
(4) Goal definition ® Goal acceptance ® Efforts ® Satisfaction ® Performance ® Rewards.

9. Consider the following statements :

(a) The sensation - thinking personalities are very emotional and focussed towards past.
(b) The intuition - thinking personalities are very futuristic, imaginative and creative.
(c) The sensation - feeling personalities are very unkeen observers, non-methodical and
problem - creators.
(d) The intuition - feeling personalities are very people-oriented, possessing personal charm
and enthusiasm.
In light of Myers - Briggs Type Indicator Personality Test, which of the above statements are
true ?
Codes :
(1) Only (b) and (d) (2) Only (a) and (c)
(3) Only (a), (b) and (d) (4) Only (b), (c) and (d)

10. The theory of andragogy is related to the theory of __________.

(1) Adult learning (2) Child learning
(3) Social learning (4) Teacher learning

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11. Match the items in List – I and List – II :
List – I List – II
(Individual Behaviour Models) (Contributory)
(a) Theory X and Y model (i) Freud
(b) Economic model (ii) F.W. Taylor
(c) Behavioural model (iii) Douglas Mc Gregor
(d) Rational model (iv) Chris Argyris
Codes :
(a) (b) (c) (d)
(1) (ii) (iv) (iii) (i)
(2) (iii) (i) (ii) (iv)
(3) (i) (iii) (iv) (ii)
(4) (iii) (ii) (iv) (i)

12. Assertion (A) : The organizational structure should follow the organizational strategy.
Reason (R) : Structures are for achieving objectives and objectives are derived from
organization’s overall strategy.
Codes :
(1) Both (A) and (R) are correct.
(2) (A) is correct and (R) is the right explanation of (A).
(3) (A) is correct but (R) is not the right explanation of (A).
(4) Both (A) and (R) are incorrect.

13. Consider the following statements with reference to “employee referral” as a recruiting option
by a company :
(a) Referrals tend to generate lower yield ratio (hires/applicants).
(b) Current employees usually provide accurate information about the job applicants they
are referring.
(c) Relying on referrals might be discriminatory.
(d) The new employees join with a more realistic picture of what the company is like.
Indicate the correct option :
(1) Statements (a) and (b) are true, others are false.
(2) Statements (b) and (c) are true, others are false.
(3) Statements (b), (c) and (d) are true, but (a) is false.
(4) All the statements are true.

D-1715 !D-1715-PAPER-III! 6 Paper-III

14. Match the items given in List – I with the items of List – II :
List – I List – II
(a) Programmed learning (i) A development technique in which teams of
managers compete by making computerized
decisions regarding realistic but simulated situations.
(b) Case study (ii) Any attempt to improve current or future
management performance by imparting knowledge,
changing attitudes or increasing skills.
(c) Management Game (iii) A development method in which the manager is
presented with a written description of an
organizational problem to diagnose and solve.
(d) Management development (iv) A systematic method for teaching job skills, involving
presentation questions or facts, allowing the person
to respond and giving the learner immediate
feedback on the accuracy of his answers.
Codes :
(a) (b) (c) (d)
(1) (iv) (i) (ii) (iii)
(2) (iv) (iii) (i) (ii)
(3) (i) (ii) (iii) (iv)
(4) (ii) (iii) (iv) (i)

15. According to the __________ of industrial relations, it is the prerogative of the management
to make decisions regarding how an enterprise is to be run and how the employees are to be
dealt with.
(1) Radical perspective (2) Trusteeship approach
(3) Unitary perspective (4) Pluralistic perspective

16. __________ provides for health care and cash benefits in cases of sickness, maternity and
employment injury.
(1) The Maternity Benefit Act, 1961
(2) The Workmen’s Compensation Act, 1923
(3) The Employee’s State Insurance Act, 1948
(4) The Payment of Gratuity Act, 1972

17. Which one of the following is not a mandatory bargaining item of collective bargaining ?
(1) Scope of the bargaining unit (2) Holidays
(3) Pensions (4) Profit-sharing plans

D-1715 !D-1715-PAPER-III! 8 Paper-III

18. Match the items of List – I with the items of List – II and choose the correct option.
List – I List – II
(a) Stanford - Binet Test (i) Finger/hand dexterity
(b) Minnesota Rate of Manipulation Test (ii) Personality
(c) Myers - Briggs Test (iii) Memory
Codes :
(a) (b) (c)
(1) (ii) (i) (iii)
(2) (iii) (i) (ii)
(3) (i) (ii) (iii)
(4) (i) (iii) (ii)

19. Which of the following simulated task(s) is/are usually included in Management Assessment
Centers ?
(a) In-basket exercises
(b) Leaderless group discussion
(c) Management games
(1) (a) (2) (a) and (b) (3) (b) and (c) (4) (a), (b) and (c)

20. Match the items given in List – I with the items of List – II :
List – I List – II
(a) Career management (i) The lifelong series of activities that contribute to a person’s
career exploration, establishment, success, and fulfilment.
(b) Career development (ii) The deliberate process through which someone becomes
aware of personal skills, interests, knowledge, motivations
and other characteristics and establishes action plans to
attain specific goals.
(c) Career planning (iii) The process for enabling employees to better understand
and develop their career skills and interests and to use
these skills and interests more effectively
Codes :
(a) (b) (c)
(1) (iii) (ii) (i)
(2) (iii) (i) (ii)
(3) (i) (ii) (iii)
(4) (ii) (i) (iii)

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21. Which of the following can be the ground for employee dismissal ?
(a) Unsatisfactory performance
(b) Misconduct
(c) Lack of qualifications
(1) Only (b) (2) (a) and (b) (3) (b) and (c) (4) (a), (b) and (c)

22. Assertion (A) : With most of the allowances, etc. linked to wages and the courts ruling ‘no
work no wage’ principle, workers are not usually prepared to lose earnings
due to strikes.
Reason (R) : It is usually difficult to go on a legal strike due to restrictions on strikes in
the form of notice and prohibition during the pendency of conciliation,
adjudication, etc.
Codes :
(1) Both (A) and (R) are correct and (R) is the right explanation of (A).
(2) Both (A) and (R) are correct but (R) is not the right explanation of (A).
(3) (A) is correct, but (R) is not correct.
(4) (R) is correct, but (A) is not correct.

23. If risk free rate of return is 5%, market return is 10% and the cost of equity is 13%, the value
of beta (b) is :
(1) 1.2 (2) 1.5 (3) 1.6 (4) 1.8

24. The company has been buying an item in lots of 2,400 units which is six months’ supply, the
cost per unit is ` 12, order cost is ` 8 per order and the carrying cost is 25%. The Economic
Order Quantity is :
(1) 392 (2) 39 (3) 160 (4) 200

25. A company issues 11% debentures of ` 100 each for an amount aggregating ` 2,00,000 at
10% premium, redeemable at par after 5 years. The company tax rate is 40%. The cost of
debt is :
(1) 4.38% (2) 11% (3) 5.5% (4) 10%

26. Determine the market price of a share using Gordon’s model of Dividend, if total investment
in asset is ` 10,00,000 number of shares is 50,000 with a total earning of ` 2,00,000. The cost
of capital is 16% and payout ratio is 40%.
(1) ` 45 (2) ` 60 (3) ` 40 (4) ` 38

D-1715 !D-1715-PAPER-III! 12 Paper-III

27. A company wishes to raise ` 30,00,000 through a right offering. It has 2,40,000 shares
outstanding, which have been most recently trading between ` 106 and ` 116 per share. On
the advice of the SBI caps, the company has set the subscription price for the rights at ` 100
per share. What will be the theoretical value of a right if the current market price is ` 109
with rights and the subscription price is ` 100 ?
(1) ` 1.125 (2) ` 1.375 (3) ` 1.000 (4) ` 1.750

28. The public sale of common stock in a subsidiary in which the parent company usually retains
majority control is called :
(1) A pure play (2) A spin - off
(3) A partial sell - off (4) An equity carve - out

29. The __________ is especially well suited to offer hedging protection against transaction risk
exposure.
(1) Forward Market (2) Spot Market
(3) Transactions Market (4) Inflation Rate Market

30. Match the following :

List – I List – II
(Items / Methods) (Used /Application)
(a) Purchase Consideration (i) Marketing
(b) Written Down Value Method (ii) Store Recording
(c) LIFO method (iii) Depreciation
(d) Rate of Return Method (iv) Capital Budgeting
(v) Merger
Codes :
(a) (b) (c) (d)
(1) (iv) (iii) (v) (i)
(2) (i) (iii) (iv) (v)
(3) (i) (v) (ii) (iii)
(4) (v) (iii) (ii) (iv)

31. Time value of an option is :

(1) Price of the option 2 Intrinsic value of option
(2) Intrinsic value of option 2 Price of the option
(3) Current market price 2 Exercise price
(4) Exercise price 2 Current market price

32. According to the CAPM, overpriced securities have :

(1) Zero Betas (2) Negative Betas (3) Zero Alphas (4) Negative Alphas

D-1715 !D-1715-PAPER-III! 14 Paper-III

33. Match the items of List – I with those of List – II :
List – I List – II
(a) Customer-segment pricing (i) Pricing products differently but not proportionately
to their costs
(b) Product-form pricing (ii) Pricing products differently even though the cost of
offering at that arena is the same
(c) Location pricing (iii) Pricing differently even though the products are same
(d) Time pricing (iv) Pricing differently for the different seasons
Codes :
(a) (b) (c) (d)
(1) (iv) (iii) (i) (ii)
(2) (iii) (i) (ii) (iv)
(3) (ii) (i) (iv) (iii)
(4) (i) (iv) (iii) (ii)

34. Which of the following is not primarily a responsibility of producers for their channel
members ?
(1) Establishing price policies
(2) Condition of sales
(3) Distributors’ territorial rights
(4) Establishing distribution efficiencies

35. An aspect of personality which is responsible for dealing with reality; functions in conscious,
preconscious and unconscious mind and where the reality principle weighs the costs and
benefits of an action before deciding to act upon or abandon impulse is called :
(1) Id (2) Ego (3) Superego (4) Innerself

36. Which of the following is not a parameter for Servqual Model given by Parasuraman etc. ?
(1) Tangibles (2) Reliability (3) Empathy (4) Insurance

37. Which of the following is not a deciding factor for Advertising Budget out of the given
options ?
(1) Competitive Parity (2) A fixed percentage of turnover
(3) Affordability (4) Competitor’s Advertising Policy

D-1715 !D-1715-PAPER-III! 16 Paper-III

38. Match the items of List – I with those of List – II :
List – I List – II
(a) Standards Gap (i) Difference between what is, in fact, delivered and what
customers perceive they have received
(b) Knowledge Gap (ii) Difference between what a service provider’s
communication efforts promise and what a customer
thinks, was promised by these communications
(c) Perception Gap (iii) Difference between what service providers believe
customers expect and customer’s actual needs and
expectations
(d) Interpretation Gap (iv) Difference between management’s perception of customer
expectations and the quality standards established for
service delivery
Codes :
(a) (b) (c) (d)
(1) (iv) (iii) (i) (ii)
(2) (ii) (iv) (iii) (i)
(3) (iii) (iv) (i) (ii)
(4) (i) (ii) (iv) (iii)

39. Match the items of List – I with those of List – II :

List – I List – II
(Stages of PLC) (Critical factors)
(a) Introduction (i) Cost efficiency
(b) Growth (ii) Marketing effectiveness
(c) Maturity (iii) Advertising and Distribution
(d) Obsolescence (iv) Product Development and Design
Codes :
(a) (b) (c) (d)
(1) (iv) (iii) (ii) (i)
(2) (i) (ii) (iii) (iv)
(3) (iii) (ii) (i) (iv)
(4) (ii) (iv) (i) (iii)

D-1715 !D-1715-PAPER-III! 18 Paper-III

40. Match the items of List – I with those of List – II :
List – I List – II
(a) Customer Penetration (i) Purchases from the company by its customers
expressed as a percentage of their total purchases
from all suppliers of the same products.
(b) Customer Loyalty (ii) The average price charged by the company expressed
as a percentage of the average price charged by all
companies.
(c) Customer Selectivity (iii) Percentage of all customers who buy from the
company.
(d) Price Selectivity (iv) Size of the average customer purchase from the
company expressed as a percentage of the size of
the average customer purchase from an average
company.
Codes :
(a) (b) (c) (d)
(1) (ii) (iv) (iii) (i)
(2) (i) (iii) (iv) (ii)
(3) (iii) (i) (iv) (ii)
(4) (iv) (ii) (i) (iii)

41. Match the items of List – I with those of List – II :

List – I List – II
(Pattern of PLC) (Product category)
(a) Growth - Slump - Maturity Pattern (i) Pharmaceutical products
(b) Cycle - Recycle Pattern (ii) Nylon for parachutes, hosiery, carpeting
etc.
(c) Scalloped Pattern (iii) Small kitchen appliances
Codes :
(a) (b) (c)
(1) (i) (ii) (iii)
(2) (iii) (ii) (i)
(3) (iii) (i) (ii)
(4) (i) (iii) (ii)

42. The principles of Deferment, Autonomy of object, use of Common place, Involvement/
detachment and use of metaphor are used for __________ idea generation technique.
(1) Attribute listing (2) Brainstorming
(3) Synectics (4) None of the above

D-1715 !D-1715-PAPER-III! 20 Paper-III

43. In solving a facility location problem in which there are two possible locations being
considered, the transportation algorithm may be used. In doing this :
(1) Two rows (sources) would be added to the existing rows and the enlarged problem
would be solved.
(2) Costs of zero would be used for each of the new facility.
(3) Two separate transportation problems will be solved.
(4) The MODI method must be used to evaluate the empty cells.

44. Five jobs are to be scheduled in two machines in a production unit. All the five jobs undergo
processing in both the machines (shop floor). The table given below provides information on
the processing time in both the machines :
Table :

Processing time
Job No.
Machine 1 Machine 2
1 4 7
2 6 3
3 2 3
4 7 7
5 8 6

Identify the best sequence using Johnson’s rule.

(1) Job 3 Job 1 Job 4 Job 5 Job 2

(2) Job 3 Job 5 Job 4 Job 1 Job 2

(3) Job 5 Job 3 Job 1 Job 2 Job 4

(4) Job 5 Job 1 Job 2 Job 3 Job 4

45. Marginal analysis should be used instead of a payoff table to determine how many units of a
perishable product to store :
(1) if the number of states of nature is very low
(2) if the number of alternatives is very low
(3) if the number of alternatives is very high
(4) if the marginal profit is greater than the marginal loss

D-1715 !D-1715-PAPER-III! 22 Paper-III

46. Design professionals brainstorm various options and raise several questions while doing value
engineering, which of the following questions shall be included for brainstorming :
(a) Can we eliminate certain features ?
(b) Are there certain features of design that cost more than they worth ?
(c) Can we reduce the cost by eliminating the production cycles ?
(d) Can we eliminate some parts and replace them with more universal parts ?
(1) Only (a) and (b) (2) Only (b) and (d)
(3) (a), (b) and (d) (4) (a), (b) and (c)

47. Match the items of List – I with those of List – II :

List – I List – II

(a) X Chart (i) Sampling risks measurement

(b) C Chart (ii) Potential capability measurement
(c) O C Curve (iii) Variable measurement
(d) 6 s Chart (iv) Attribute measurement
Codes :
(a) (b) (c) (d)
(1) (iii) (i) (iv) (ii)
(2) (iii) (iv) (i) (ii)
(3) (iv) (iii) (i) (ii)
(4) (iv) (ii) (iii) (i)

48. In a production shift of 8 hours duration, the observed time per unit is 5 minutes and Rating
factor is 120%. The standard production per shift will be :
(1) 60 units (2) 50 units (3) 40 units (4) 30 units

49. In hypothesis testing ‘P’ value ranges between :

(1) Zero and Infinity (2) Minus infinity and Plus infinity
(3) Zero and One (4) 21 and 11

50. When the population size ‘N’ is very large relative to the sample size ‘n’, the finite population
multiplier takes on value close to :
(1) 0.5 (2) 0.1 (3) 1.0 (4) 0.05

D-1715 !D-1715-PAPER-III! 24 Paper-III

51. Statements given below are related to analysis of variance. Identify the statement/s that are
true :
Statement (I) : The shape of ‘F’ distribution depends on the number of degrees of freedom
in both the numerator and the denominator of the ‘F’ ratio.
Statement (II) : In analysis of variance, sample sizes should be equal.
Statement (III) : Analysis of variance may be used to test whether the means of more than
two populations are equal.
Codes :
(1) Statements (I), (II) and (III) are true (2) Statements (I) and (II) are true
(3) Statements (I) and (III) are true (4) Only statement (III) is true

52. From the following statements choose the correct statement/s :

Statement (I) : A statistic is a characteristic of a population.
Statement (II) : The standard error of mean is the standard deviation of the sampling
distribution.
Statement (III) : The standard error of mean decreases in direct proportion to sample size.
Codes :
(1) Only (I) and (II) is true (2) Only (II) and (III) are true
(3) Only (II) is true (4) Only (III) is true

53. Which among the following are the examples of key less interfaces ?
(1) Mouse, OCR, pen and voice recognition
(2) Keyboard, OCR, pen and voice recognition
(3) Bar coding, OCR, pen and voice recognition
(4) None of the above

54. Which of the following are the inputs of marketing information system ?
(a) Marketing research data
(b) Marketing intelligence data
(c) External environment data
(d) Strategic plan
Choose the correct option :
(1) Only (a) and (b) (2) Only (a), (b) and (c)
(3) Only (a), (c) and (d) (4) (a), (b), (c) and (d)

D-1715 !D-1715-PAPER-III! 26 Paper-III

55. The Uruguay round provided ‘Sunset’ clause to control :

(1) Customs valuation (2) Dumping

(3) Technical barriers to trade (4) Dispute settlement

56. In order to promote domestic capital goods manufacturing industry, Specific Export Obligation
under EPCG scheme, in case capital goods are procured from indigenous manufacturers,
has been reduced from 90% to __________.

(1) 50% (2) 60% (3) 75% (4) 80%

57. International banking dealing with non-residents only and not in the currency of the country
where they are located is called __________.

(1) Non-resident Banking (2) Offshore Banking

(3) Euro Currency Banking (4) London Discount House

58. Exporter’s ‘Export risk insurance’ is covered by __________.

(1) Insurance Companies (2) Export Credit Guarantee Corporation

(3) Reserve Bank of India (4) Export Development Authorities

59. In which sector FDI was not prohibited under the government route as well as automatic
route till February 10, 2015 ?

(1) Atomic energy (2) Lottery business

(3) Housing and real estate (4) Single brand retail trade

60. Member Countries of NAFTA are __________.

(1) Brazil, USA and Canada (2) Canada, USA and Mexico

(3) USA, Argentina and Canada (4) Panama, USA and Canada

D-1715 !D-1715-PAPER-III! 28 Paper-III

61. Presently in India, rupee convertability in foreign exchange is __________.
(1) Restricted (2) Partial
(3) Full (4) None of the above

62. A country can improve its balance of payment through contribution both to current account
and capital account by way of __________.
(1) Export promotion (2) Foreign Direct Investment
(3) Import of Capital (4) Export of Capital

63. “__________ is a statement showing a Country’s Commercial Transaction with the rest of
the world . It shows inflow and outflow of foreign exchange. It is divided into current and
capital accounts. The former records the transaction in goods and services.”
(1) Foreign Direct Investment (2) Balance of Payment
(3) Movement of Foreign Exchange (4) International Commitments

64. The activity of making profit through buying a Currency cheap in one market and selling it
dear in the other market at a particular point of time is known as __________.
(1) Forward currency (2) Currency arbitrage
(3) Speculation of currency (4) Depreciated currency

65. Match the items of List – I with List – II with regards to the causes of sickness in small scale
industry.
List – I List – II
(a) Internal causes of sickness (i) Own financing by banks
(b) External problems (ii) Red tapism
(c) Sickness because of government policies (iii) Faulty project selection
Codes :
(a) (b) (c)
(1) (i) (ii) (iii)
(2) (i) (iii) (ii)
(3) (ii) (i) (iii)
(4) (iii) (i) (ii)

D-1715 !D-1715-PAPER-III! 30 Paper-III

66. Assertion (I) : A sick industry is one which is not healthy in terms of its financial
management.

Assertion (II) : A unit which has incurred cash losses for one year and it is likely to continue
to incur cash loss for current year as well as for following year is considered
to be a sick unit.

(1) Assertion (I) only is correct.

(2) Assertion (II) only is correct.

(3) Assertion (I) and (II) both are incorrect.

(4) Assertion (I) and (II) both are correct.

67. Which of the following is/are eligible to get the benefit under the scheme of “Rehabilitation
of Sick Enterprises” by the Government of India ?

(1) Micro sick unit (2) Small sick unit

(3) Medium sick unit (4) All of the above

68. Match the items of List – I with List – II with regards to phases of entrepreneurial process :

List – I List – II

(a) Identify and evaluate the opportunity (i) Executive summary

(b) Develop business plan (ii) Develop access to needed resources

(c) Determine the required resources (iii) Implement control system

(d) Manage the enterprise (iv) Assess the competitive environment

Codes :

(a) (b) (c) (d)

(1) (iv) (ii) (iii) (i)

(2) (iv) (i) (ii) (iii)

(3) (i) (iii) (ii) (iv)

(4) (iv) (iii) (i) (ii)

D-1715 !D-1715-PAPER-III! 32 Paper-III

69. Which among the following is not a scheme by the MSME ?

(1) Assistance to Training Institutions (ATI)

(2) Credit Linked Capital Subsidy (CLCS)

(3) Credit Linked Assets Subsidy (CLAS)

(4) ISO 9000/ISO 14001 Certification Reimbursement

70. The enforcement mechanisms followed in respect of implementation of corporate governance

practices are indicated below. Choose any one of the mechanism which is not included in
corporate governance practice.

(1) Clause 49 of the Listing Agreement

(2) Directors responsibility statement, appointment of independent directors, audit

committee and internal check

(3) Corporate governance compliance certificate, audit committee report, appointment of

woman director

(4) Formulation of mission statement, appointment of a whistleblower, contents of red

herring prospectus

71. There is a provision in the Companies Act, 2013 regarding related party transactions to
ensure ethical standards in managerial decisions. From the following options identify who is
not a related party as per the Companies Act, 2013.

(1) A person on whose advice, directions or instructions (except given in professional

capacity) a director or manager is accustomed to act.

(2) A private company in which a director or manager is a director or holds along with his
relatives less than 2% of its paid up share capital.

(3) A firm in which a director, manager or his relative is a partner.

(4) A holding/subsidiary or associate company, subsidiary’s subsidiary and such person

as would be prescribed.

D-1715 !D-1715-PAPER-III! 34 Paper-III

72. Ethics deals with ideals, it is regarded as a normative science. Choose any one from the
following options which is not a part of ethics as a normative science.

(1) It tells what a human conduct ought to be.

(2) It determines norms, ideals, standards or values.

(3) It passes judgements of value stating whether a particular conduct is in conformity

with the moral ideal or the ideal of goodness.

(4) It passes judgements regarding facts and events as they are and state the laws governing
them.

73. Value formulation is a combination of several factors indicated below. Which one of them is
the appropriate option ?

(1) Biological source, medical source, legal mandate, organisational mission and vision

(2) Legal source, moral source, spiritual source, philanthropic source

(3) Organisational culture, command from higher authorities, judicial pronouncements

(4) Genetic source, environmental source (culture, education, religious faith), influence of
superiors, multimedia source

74. In the sphere of ethics in decision making, for determining morally correct action, there are
specific stages providing rationale for moral action. Choose any one appropriate option
from the following.

(1) Actions that avoid punishment, actions that serve one’s needs, actions that gain approval
from others, actions that abide laws and authority, social contracts and actions
supported by universal principles.

(2) Actions that impose punishment, actions that are not followed by feedback response,
actions beyond moral approbation, approved by judicial pronouncement, supported
by universal principles.

(3) Actions that are morally right, legally enforceable, is used on external believes that
events are controlled by destiny, fate or luck, not supported by social contracts, supported
by universal principles.

(4) Actions that are morally wrong but supported by hierarchy and organisational goal of
profit maximisation, individual judgement about ethicality of the decision is ignored.

D-1715 !D-1715-PAPER-III! 36 Paper-III

75. Assertion (A) : According to David Fritzsche, business ethics is the process of evaluating
decisions, either pre or post, with respect to the moral standards of society’s
culture.

Reason (R) : Managers need not evaluate the moral dimensions of a decision before
making it, because they are to carry out the order of the higher authority to
maximise commercial gain for the entity.

Codes :

(1) Both (A) and (R) are correct.

(2) (A) is correct and (R) is the right explanation of (A).

(3) (A) is correct but (R) is not the right explanation of (A).

(4) Both (A) and (R) are incorrect.

-oOo-

D-1715 !D-1715-PAPER-III! 38 Paper-III

 MANAGEMENT
PAPER – III
Note : This paper contains seventy five (75) objective type questions of two (2) marks each. All
questions are compulsory.
1. Which of the following are the assumptions related to the theory of consumer behaviour as
per the Cardinal utility approach ?
(i) Consumer is rational.
(ii) No limit on money income.
(iii) Utility cardinally measurable.
(iv) Diminishing marginal utility of money.
(v) Diminishing marginal utility of commodities.
(vi) Maximization of satisfaction.
(vii) For calculating total utility, individual utilities of commodities are to be multiplied.
Codes :
(1) (i), (ii), (iii) and (iv) (2) (iv), (v), (vi) and (vii)
(3) (i), (iii), (v) and (vi) (4) (iii), (iv), (vi) and (vii)

2. Which one of the following is not the property of Cobb-Douglas Production Function ?
(1) The multiplicative form of the power function can be changed into its log-linear
form.
(2) Power functions are not homogeneous because the sum of the exponents is not equal
to degree 1.
(3) The parameters in the function a and b represent the elasticity coefficient of output
for inputs (capital and labour) respectively.
(4) Constants a and b in the function represent share of inputs capital and labour in total
output.
3. Statement – I : Costs which do not take the form of cash outlays, nor do they appear in
the accounting system are known as opportunity costs.
Statement – II : Costs in the form of depreciation allowances and unpaid interest on the
owner’s own funds are known as sunk costs.
(1) Both the statements are correct.
(2) Both the statements are incorrect.
(3) Statement – I is correct while Statement – II is incorrect.
(4) Statement – I is incorrect while Statement – II is correct.
4. Which one of the following is incorrect combination with regard to the types of market
structures ?
No. of firms and degree of product
Market Structure Control over price
differentiation
(1) Perfect competition Large number of firms with None
homogeneous products
(2) Monopolistic Many firms with real or perceived Some
Competition product differentiation
(3) Oligopoly Little or no product differentiation Some
and many firms
(4) Monopoly Single firm with close substitute Some
Paper-III 2 J-17-16
5. Which one of the following is not studied in Macro-Economics ?
(1) General Theory of Employment, Interest and Money.
(2) Market structure and Pricing decisions.
(3) Foreign Trade.
(4) Theories of economic growth.

6. Statement I : Although culture plays a significant role in personality development, a

linear relationship cannot be established between culture and personality.
Statement II : The existence of several sub-systems within the same culture cannot
influence the personality.
(1) Statement II is correct, but Statement I is incorrect.
(2) Statement I is correct, but Statement II is incorrect.
(3) Both, Statement I and II are correct.
(4) Both, Statement I and II are incorrect.

7. Match the items of List – I with the items of List – II and find the correct combination :
List – I List – II
(Thinker) (Popularly known for)
(a) F.W. Taylor (i) Generated interest in people at work place.
(b) F.J. Roethlisberger (ii) Emphasized on human needs of employees.
(c) Robert Owen (iii) Human problems were considered as main
element of human relations.
(d) Elton Mayo (iv) Considered organization as a social system.
Codes :
(a) (b) (c) (d)
(1) (ii) (iv) (iii) (i)
(2) (i) (iv) (ii) (iii)
(3) (i) (iii) (iv) (ii)
(4) (iv) (i) (ii) (iii)

8. The group formation theory explaining affiliation based on spatial proximity is called ___
(1) Homan’s theory (2) Propinquity theory
(3) Balance theory (4) Exchange theory

9. Assertion (A) : Intra-individual conflict is perhaps the most difficult type of conflict to
analyse, since it is internal to the person.
Reasoning (R) : Conflict arises within an individual whenever his drives and motives are
blocked and/or he is confronted with competing roles and goals and he is unable to
take decisions.
Codes :
(1) Assertion (A) and Reasoning (R), both are correct, and Reasoning (R) is correct
explanation of Assertion (A).
(2) Assertion (A) and Reasoning (R), both are correct but Reasoning (R) is not right
explanation of Assertion (A).
(3) Assertion (A) is correct, whereas Reasoning (R) is incorrect.
(4) Reasoning (R) is correct, whereas Assertion (A) is incorrect.
Paper-III 4 J-17-16
10. Match the items of List – I with List – II related to communication models :
List – I List – II
(a) Lasswell Model (i) Communication process based on
information theory.
(b) Shannon-Weaves Model (ii) Different shapes of process depending upon
situation.
(c) Gerbner’s Model (iii) Dynamic interactive process.
(d) Berlo Model (iv) Communication is a persuasive model.
Codes :
(a) (b) (c) (d)
(1) (i) (ii) (iv) (iii)
(2) (ii) (iii) (i) (iv)
(3) (iii) (iv) (ii) (i)
(4) (iv) (i) (ii) (iii)

11. Match the items of List – I with the items of List – II and select the correct code.
List – I List – II
(a) Planning (i) Getting others to get the job done.
(b) Organizing (ii) Setting standards such as sales Quotas,
quality standards, etc.
(c) Leading (iii) Establishing goals and standards.
(d) Controlling (iv) Giving each subordinate a specific task.
Codes :
(a) (b) (c) (d)
(1) (ii) (i) (iv) (iii)
(2) (i) (ii) (iv) (iii)
(3) (iii) (i) (iv) (ii)
(4) (iii) (iv) (i) (ii)

12. Which one of the following media will be the most suitable when a company wants to
limit recruiting to a specific area ?
(1) Radio and Television (2) Magazines
(3) Newspapers (4) Internet

13. Select the correct sequence of the job evolution process.

(a) Select benchmark jobs. (b) Evaluate select benchmark jobs.
(c) Analyse benchmark jobs. (d) Select the most appropriate method.
(e) Prepare a project plan. (f) Communicate with employees.
(g) Articulate the objectives.
Codes :
(1) (g), (a), (c), (b), (d), (f) and (e)
(2) (g), (d), (e), (f), (a), (c) and (b)
(3) (e), (g), (f), (a), (d), (c) and (b)
(4) (d), (e), (f), (g), (a), (c) and (b)
Paper-III 6 J-17-16
14. Consider the following statements :
Statement – I : Grievance is like a ‘headache’ as it a symptom rather than a disease.
Statement–II : The employee should be told of his line of appeal by
employer/management, if he does not get satisfaction from his immediate superior.
Statement – III : Grievance Redressal Mechanism does not believe in the concept –
“Justice delayed is justice denied” as it gives more weightage on proper settlement.
Codes :
(1) All the above statements are correct.
(2) Statements I and II are correct; III is incorrect.
(3) Statements I and III are correct; II is incorrect.
(4) Statements II and III are correct; I is incorrect.

15. Assertion (A) : The domestic enquiry, as a part of disciplinary action, is a quasi judicial
process where the onus of proving the charges lies with the accuser.
Reasoning (R) : If the charges are not proved, then the employee is exonerated.
Codes :
(1) (A) is correct, but (R) is incorrect.
(2) (A) is incorrect, but (R) is correct.
(3) Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(4) Both (A) and (R) are correct, and (R) is the right explanation of (A).

16. Frequently, maximization of profits is regarded as the proper objective of the firm, but it is
not as inclusive a goal as that of maximizing shareholder wealth because
(1) total profits are not as important as earnings per share.
(2) earnings per share are more important than total profits.
(3) maximization of earnings per share is not a fully appropriate objective because it
does not specify the duration of expected returns.
(4) maximization of earnings per share is not a fully appropriate objective because it
does not specify the timing of expected returns.

17. Match the items of List – I with the items of List – II.
List – I List – II
(a) IRR (i) Process of analyzing potential fixed asset

(ii) (Proportion of equity) u (cost of equity) +

investment.

(Proportion of debt) u (cost of debts).

(b) NPV is equal to zero.

(c) Cost of capital (iii) Project is acceptable.

(d) Capital budgeting (iv) NPV = Zero.
Codes :
(a) (b) (c) (d)
(1) (iii) (ii) (iv) (i)
(2) (iv) (iii) (ii) (i)
(3) (iv) (i) (ii) (iii)
(4) (i) (ii) (iii) (iv)
Paper-III 8 J-17-16
18. Which one is a false statement ?
(1) Pure risks are risks that offer only the prospect of loss.
(2) Speculative risks are situations that offer the chance of a gain but might result in a loss.
(3) Liability risks are associated with product, and not with service, or with employee
actions.
(4) Environmental risks include risks associated with polluting the environment.
19. Which one is a correct statement ?
(1) When the required rate of return is more than the stated coupon rate, the value of the
bond will be less than its face value.
(2) A bond is said to be selling at a premium when the required rate of return is less
than stated coupon rate.
(3) The value of the bond will equal to its face value when the required rate of return
equals the stated coupon rate.
(4) If interest rates rise so that the required rate of return increases, then the bond will
increase in value.
20. Which one of the following statements is not correct ?
(1) The return from holding a security is simply the change in market price, plus any
cash payments received from the company, divided by the beginning price.
(2) A key factor in the valuation of any financial instrument is an implied positive
relationship between risk and expected return.
(3) The risk that cannot be avoided by diversification of the securities one holds, is
called unavoidable risk.
(4) The slope of the security market line tells the degree to which investors are not risk
averse.
21. Marketers should be aware of laws, government agencies, and pressure groups that
influence or limit various organizations and individuals in a given society. This is most
accurately described as which one of the following environment ?
(1) Political (2) Legal-technological
(3) Cultural (4) Social
22. Which one of the following is a consumer-goods market testing method in which
consumers who initially try the product at no cost are reoffered it, or a competitors’
product at slightly reduced price ?
(1) Simulated Test Marketing (2) Controlled Test Marketing
(3) Test Markets (4) Sales-Wave Research
23. Which of the following statements are correct ?
Statement-I : Customer Relationship Management (CRM), describes the Company’s
optimization of the value of its customer base.
Statement-II : Customer Value Management(CVM) focuses on the analysis of individual
data on prospects and customers to develop marketing strategies to acquire and
retain customers and drive customer behaviour.
Statement-III : CRM is the process of carefully managing detailed information about
individual customers and all customer “touch points” to maximize loyalty.
Codes :
(1) I and II (2) I and III
(3) II and III (4) III
Paper-III 10 J-17-16
24. Consider the following statements related to different stages of PLC and choose the
correct code :
(a) Introduction – A period of slow sales growth and low profit.
(b) Introduction – A period of slow sales growth and non-existent profit.
(c) Growth – A period of rapid market acceptance and substantial profit
improvement.
(d) Growth – A period of rapid market acceptance and slow profit
improvement.
(e) Decline – Sales show a downward drift and profits stabilize.
(f) Decline – Sales show a downward drift and profits erode.
Codes :
(1) (a), (c) and (f) (2) (b), (c) and (f)
(3) (a), (d) and (f) (4) (b), (d) and (e)
25. Match the items of List – I with the items of List – II and select the correct code.
List – I List – II
(a) Coupons (i) Using one brand to advertise another non-competing brand.
(b) Tie-in Promotions (ii) Offers to consumers of savings off the regular price of a
product.
(c) Cross Promotions (iii) Certificates entitling the bearer to a stated saving on the
purchase of a specific product.
(d) Price Packs (iv) Two or more brands or companies team up on coupons,
refunds, and contests to increase pulling power.
Codes :
(a) (b) (c) (d)
(1) (iii) (iv) (ii) (i)
(2) (i) (iii) (iv) (ii)
(3) (iii) (iv) (i) (ii)
(4) (iv) (ii) (i) (iii)
26. Which of the following jobs/decisions of production/operations management are related to
short time horizon ?
(i) Product design (ii) Product variations
(iii) Production scheduling (iv) Design of jobs
(v) Breakdown maintenance (vi) Available materials allocation and handling
Codes :
(1) (i), (iii) and (iv) (2) (i), (ii) and (iv)
(3) (iii), (v) and (vi) (4) (ii), (v) and (vi)
27. Match the items of List – I with the items of List – II regarding Operations Research
Models and their bases of Categorization and indicate the code of their correct matching.
List – I List – II
(Type of Model) (Basis of Categorization)
(a) Analogue Model (i) Nature of environment
(b) Descriptive Model (ii) Method of getting the solution
(c) Deterministic Model (iii) Structure
(d) Simulation Model (iv) Utility
Codes :
(a) (b) (c) (d)
(1) (i) (ii) (iii) (iv)
(2) (iii) (iv) (i) (ii)
(3) (ii) (iv) (i) (iii)
(4) (iv) (i) (iii) (ii)
Paper-III 12 J-17-16
28. Which one of the following criteria is not used for decision-making under uncertainty ?
(1) Maximin (2) Maximax
(3) Minimax (4) Minimize expected loss

and service rate are demoted by O and P respectively ?

29. Which one of the following is used to know the average queue length when the arrival rate

O O2
P–O P (P – O)
(1) (2)
O
P–O P
1
(3) (4)

–
30. X and R-charts are for which of the following ?
(1) Charts for variables (2) Charts for number of defects
(3) Charts for attributes (4) None of the above
31. Match the items of List – I with the items of List – II regarding sampling theory and
indicate the code of their correct matching.
List – I List – II
(i) Law of Statistical Regularity (a) Non-sampling errors
(ii) Law of Inertia of Large Numbers (b) Sampling technique
(iii) Quota sampling (c) Theoretical basis of sampling
(iv) Response errors
(v) Non-response errors
Codes :
(a) (b) (c)
(1) (i), (ii) (iii) (iv), (v)
(2) (iv), (v) (i), (ii) (iii)
(3) (iv), (v) (iii) (i), (ii)
(4) (iii) (iv), (v) (i), (ii)

P P
1 1
32. Statement – I : Exponential probability distribution has the mean = and variance = 2.
Statement – II : The mean, median and mode do not coincide in the normal distribution.
Statement – III : The binomial distribution is symmetrical for any value of p (probability
of success).
Codes :
(1) All the three statements are true.
(2) All the three statements are false.
(3) Statement – I is true while Statements – II & III are false.
(4) Statement – III is true while Statements I & II are false.
33. Which one of the following statements is correct ?
(1) When both the variables X and Y are measured on an interval or ratio scale, Karl

VP
Pearson’s coefficient of correlation is most appropriate.

(2) The probable error of coefficient of correlation is .

n
(3) If the sign of two regression coefficients (Y on X) and (X on Y) is negative, the sign
of correlation coefficient is positive.
(4) If one of the regression coefficients is greater than one, the other regression
coefficient must also be greater than one.
Paper-III 14 J-17-16
34. When a researcher wants to test whether two samples can be regarded as drawn from the
normal populations having same variance by using variance ratio, which one of the
following tests of hypothesis is appropriate ?
(1) Z-test (2) t-test
(3) Chi-square test (4) F-test
35. Which one of the following matrix graphically portrays differences among divisions in
terms of relative market share position and industry growth rate ?
(1) SPACE Matrix (2) BCG Matrix
(3) SWOT Matrix (4) IE Matrix
36. Consider the following statements :
(a) The stage of industry’s development (life cycle) cannot influence the nature of
competitive rivalry.
(b) As the industry starts to mature in terms of life cycle, rules are rejected, consumer
expectations about quality and performance are blurred and industry standards are
put for modification.
(c) A major feature of maturing industries is the tendency for competition based on
product pricing becoming similar.
(d) In declining industries, only the most efficient firms can earn reasonable profits.
In the light of Industry Life Cycle, which of the above statements are true ?
Codes :
(1) Only (c) and (d) (2) Only (a), (c) and (d)
(3) Only (b) and (c) (4) Only (b), (c) and (d)
37. According to Michael Porter’s Generic strategies, the three different basis of gaining
competitive advantage by an organization are which of the following ?
(1) Integration, diversification and acquisitions.
(2) Growing, building and sustaining.
(3) Cost leadership, differentiation and focus.
(4) Positioning, capturing and changing.
38. Match the items given in List – I with the items of List – II.
List – I List – II
(a) Objectives (i) Reveal priorities
(b) Strategies (ii) Retreats
(c) Policies (iii) Potential actions
(d) Periodical conduct of strategic- (iv) Mainly address repetitive/recurring situations
management meeting
Codes :
(a) (b) (c) (d)
(1) (i) (iii) (iv) (ii)
(2) (iii) (ii) (i) (iv)
(3) (iv) (i) (iii) (ii)
(4) (ii) (iv) (i) (iii)
39. The forum which reviews the trade policies of all WTO member countries is which one of
the following ?
(1) DSB (2) TPRB
(3) TRIPS (4) General Council
Paper-III 16 J-17-16
40. A working group set up by Reserve Bank of India on “Flow of Credit of SSI Sector”
submitted its report in May 2004. One of the major recommendation was that the
definition of the small and medium enterprises sector be based on its turnover. The
working group was headed by
(1) Shri Abid Hussain (2) Shri P.R. Nayak
(3) Shri S.L. Kapur (4) Dr. A.S. Ganguli

41. Assertion (A) : Small-scale and Cottage industries ensure a more equitable distribution of
the national income.
Reasoning (R) : The ownership of Small-Scale Industries is more widespread than
ownership of large-scale industries and they possess much larger employment potential.
Codes :
(1) (A) is correct, but (R) is incorrect.
(2) (A) is incorrect, but (R) is correct.
(3) Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(4) Both (A) and (R) are correct, and (R) is the right explanation of (A).
42. Match the items of List – I with those of List – II.
List – I List – II
(Projects) (Classification)
(a) Magnitude Oriented (i) Classify projects on the basis of capital
intensive and/or labour intensive projects.
(b) Non-quantifiable (ii) Classify projects on the basis of availability
of demand for goods and services, raw
materials, skills and/or other inputs.
(c) Causation Oriented (iii) Level of investment is generally used as a
deciding criteria for project classification.
(d) Factor Intensity Oriented (iv) Projects with social endowments like health,
education, social welfare etc.
Codes :
(a) (b) (c) (d)
(1) (i) (ii) (iii) (iv)
(2) (ii) (iii) (iv) (i)
(3) (iv) (iii) (ii) (i)
(4) (iii) (iv) (ii) (i)
43. Consider the following statements :
Statement I : An Intrapreneur is not sensitive to corporate hierarchy.
Statement II : Risk and return trade-off is the main-basis for entrepreneurial behaviour.
Statement III : Entrepreneurs seek autonomy and freedom in their decision-making
process.
Statement IV : Intrapreneurs are expected to sell their ideas to their own organizations at
first.
Codes :
(1) Only Statement I is true, others are false.
(2) Only Statement I is false, others are true.
(3) Statements I and IV are true, Statements II and III are false.
(4) Statements II and III are true, Statements I and IV are false.

Paper-III 18 J-17-16
44. Match the items of List – I with List – II with regard to models of Corporate Social
Responsibility.
List – I List – II
(Proponent) (Emphasis and Models)
(a) Mahatma Gandhi (i) Voluntary commitment by companies to
public welfare. (Ethical Model)
(b) Jawaharlal Nehru (ii) State ownership and legal requirements
determine corporate responsibilities. (Statist
Model)
(c) Milton Friedmen (iii) Corporate responsibilities limited private
owners. (Liberal Model)
(d) Edward Freeman (iv) Companies respond to the needs of
stakeholders. (Stakeholder Model)
Codes :
(a) (b) (c) (d)
(1) (iii) (ii) (iv) (i)
(2) (ii) (iii) (i) (iv)
(3) (iv) (i) (ii) (iii)
(4) (i) (ii) (iii) (iv)

45. Which among the following are Kohlberg’s three basic levels of ethical principles ?
(a) Social Responsibility (b) Moral Development
(c) Organisational Ethics (d) Organisational Formal Structure
(e) Moral Values (f) Work ethos
Codes :
(1) (a), (b) & (c) (2) (d), (e) & (f)
(3) (b), (d) & (f) (4) (a), (c) & (e)

46. Assertion (A) : In a widely reported instance in Wipro Technologies, a very senior
executive who had put in long years of service in the company and had contributed
significantly to its growth had to be dismissed because he claimed in his travel
expenses more than his dues.
Reasoning (R) : Most companies in advanced countries and some even in developing
countries have developed their own codes of conduct which provide some ethical
standards for their employees.
Codes :
(1) (A) is correct, but (R) is incorrect.
(2) Both (A) & (R) are correct and (R) is the right explanation of (A).
(3) Both (A) & (R) are correct, but (R) is not the right explanation of (A).
(4) Both (A) and (R) are incorrect.
47. As per Indian Companies Act, 2013, a qualified Indian Company is required to contribute
at least 2% of its net average profit towards Corporate Social Responsibility. In which of
the following situations the company is required to follow the provisions ?
(1) Company’s net worth is ` 100 crore or more.
(2) Company’s net worth is ` 500 crore or more.
(3) Company’s net worth is ` 1,000 crore or more.
(4) Company’s net worth is ` 2,000 crore or more.
Paper-III 20 J-17-16
48. Statement I : Employee orientation provides new employees with basic background
information they need to perform their jobs satisfactorily.
Statement II : Orientation is actually part of the employer’s new employee socialization
process.
Codes :
(1) Statement I is correct. (2) Statement II is correct.
(3) Both Statements are correct. (4) Both Statements are incorrect.

49. When an employee is transferred to another country and is assigned a salary based on the
base salary for that position in the country where he will work, the employer has used a
_____ salary plan.
(1) host based (2) home based
(3) transfer (4) cost-of living

50. Select the correct sequence of steps followed in the development of an induction
programme.
(a) Identify the audience.
(b) Define the new employee notification process.
(c) Seek feedback.
(d) Identify the objectives of the induction programme.
(e) Design the induction programme content and mode of delivery.
Codes :
(1) (b), (d),(a), (e) and (c) (2) (a), (b), (d), (e) and (c)
(3) (e), (a), (b), (d) and (c) (4) (a), (b), (c), (d) and (e)

51. Assertion (A) : Every company should have a grievance redressal mechanism.
Reasoning (R) : Grievance is a feeling that should be expressed mandatorily, arising out
of anything connected to company that employee thinks is inequitable or unfair.
Codes :
(1) (A) and (R) both are correct and (R) is the right explanation of (A).
(2) (A) and (R) both are correct, but (R) is not the right explanation of (A).
(3) (A) is correct and (R) is incorrect.
(4) (A) is incorrect and (R) is correct.

52. Assertion (A) : Integrative Bargaining is a type of win-loose strategy.

Reasoning (R) : In integrative bargaining, productivity aspects are considered in mutual-
problem solving to increase gains.
Codes :
(1) (A) is correct, but (R) is incorrect.
(2) (A) is incorrect, but (R) is correct.
(3) (A) is correct and (R) is right explanation of (A).
(4) (A) is correct, but (R) is not the right explanation of (A).

Paper-III 22 J-17-16
53. Match the List – I with List – II relating to approaches to Industrial Relations.
List – I List – II
(a) Systems approach (i) Peaceful co-existence of capital and labour.
(b) V.V. Giri approach (ii) Developed by John. T. Dunlop.
(c) Gandhian approach (iii) Preference to voluntary arbitration.
(d) Socio-ethical approach (iv) Assuming moral responsibility of
understanding each other.
Codes :
(a) (b) (c) (d)
(1) (ii) (iii) (i) (iv)
(2) (iii) (ii) (iv) (i)
(3) (i) (ii) (iv) (iii)
(4) (iv) (i) (iii) (ii)

54. Consider the following statements :

Statement I : Union grievance procedures can differ from firm to firm.
Statement II : Peaceful picketing during a strike of workers is lawful.
Statement III : The National Labour Relations Board (NLRB) is an agency created by the
Wagner Act to investigate about the minimum wages in all business units.
Codes :
(1) Only statements I and II are correct.
(2) Only statement I is correct.
(3) Only statement II is correct.
(4) Only statement III is correct.

55. Assertion (A) : General business conditions can greatly modify the number and type of
middlemen available.
Reasoning (R) : Technological advances have made a significant effect on increase in
online purchase and vending machines.
Codes :
(1) (A) is incorrect and (R) is correct.
(2) (A) and (R) both are incorrect.
(3) (A) and (R) both are correct and (R) is the right explanation of (A).
(4) (A) and (R) both are correct, but (R) is not the right explanation of (A).

56. Which of the following describe the four set of variables determining buyer behaviour as
per Howard Sheth Theory ?
(1) Physical input variable, external variable, exogenous variable, output variable.
(2) Personality attitudes, perception of consumer, learning variable of consumer, brand
variable.
(3) Social input variable, purchasing attitudinal behaviour, selection behaviour, Brand
effect variable.
(4) Stimulus input variable, internal behaviour of buyer, exogenous variables, response
output variables.
Paper-III 24 J-17-16
57. Which of the following is the consumer behaviour model which conceives the person
(consumer) as a system with outputs (behaviour) in response to inputs ?
(1) The Thorndike’s Theory
(2) The Engel Kollet Blackwell Theory
(3) Buying Theory by Drucker
(4) Comprehensive Theory of consumer behaviour
58. The Facebook, popularly used for online marketing, was founded in which year and by
whom ?
(1) 2004, Peter Corbett (2) 2005, Peter Corbett
(3) 2004, Mark Zuckerberg (4) 2005, Mark Zuckerberg
59. Which of the following is a form of online word of mouth that encourages consumers to
pass along company developed products and services or any other information online ?
(1) Viral Marketing (2) Microsites
(3) Interstitials (4) Contextual placements
60. Consider the following statements relating to online marketing :
Statement I : Online communities and forums come in only one shape and size.
Statement II : In paid search, marketers bid in a continuous auction on search terms that
serve as a proxy for the consumer’s product or consumption interest.
Statement III : Marketers must recognize that only some consumers want to engage with
some brands.
Codes :
(1) Only statements I and II are correct.
(2) Only statements II and III are correct.
(3) Only statements I and III are correct.
(4) All the statements are correct.
61. Which one of the following is informal workplace, sometimes garage, where
intrapreneurial teams work to develop new products ?
(1) Garage teams (2) Venture teams
(3) Skunk works (4) Communities of practice
62. Match the items of List – I with the items of List – II.
List – I List – II
(a) A moderate approach to (i) Continually recurring short-term liabilities.
current asset financing.
(b) Short-term credit. (ii) Some permanent current assets and even
some fixed assets, are financed with short-
term debt.
(c) Accrued liabilities. (iii) Involves matching the maturities of assets
and liabilities.
(d) Aggressive approach to (iv) Any liability originally scheduled for
current assets financing. payment within one year.
Codes :
(a) (b) (c) (d)
(1) (iv) (ii) (iii) (i)
(2) (iii) (iv) (i) (ii)
(3) (ii) (iii) (i) (iv)
(4) (i) (iii) (ii) (iv)
Paper-III 26 J-17-16
63. Debt management ratios do not include
(1) Times-interest-earned ratio (2) EBITDA coverage ratio
(3) Debt ratio (4) Price/Cash flow ratio

64. The current market price of a company’s share is ` 90 and the expected dividend per share
next year is ` 4.50. If the dividends are expected to grow at a constant rate of 8%, the
share holder’s required rate of return is
(1) 8.88% (2) 13%
(3) 5% (4) 4.5%

65. A project costs ` 3,000 now is expected to generate year-end cash inflows of ` 500,
` 1,000, ` 1,000 and ` 1,100 in years first through four. The discounting factor for these 4
years at project’s opportunity cost of 10% is 0.91, 0.83, 0.75 and 0.68 respectively. The
Net present Value of project is.
(1) + ` 310 (2) – ` 310
(3) – ` 217 (4) + ` 600

66. Which one is false statement ?

(1) Net operating working capital is the difference between the current assets necessary
to operate the business and those current liabilities on which no interest is charged
(generally accounts payable and accruals).
(2) Operating assets are current assets and fixed assets necessary to operate the
business.
(3) Economic value added is the difference between after-tax operating profit and the
total cost of capital, including the cost of equity capital.
(4) Economic value added does not differ from accounting profit.

67. Which statement is false ?

(1) Capital Asset pricing Model (CAPM) is based on the proposition that any stock’s
required rate of return is equal the risk-free rate of return plus a risk premium that
reflects only the risk remaining after diversification.
(2) The relevant riskiness of an individual stock is its contribution to the riskiness of a
well-diversified portfolio.
(3) A stock’s relevant risk is greater than its stand-alone risk.
(4) Different stocks will affect the portfolio differently, so different securities have
different degrees of relevant risk.

68. From the following particulars, determine funds from operations :

`
Salaries & Wages expenses 7,000
Profit on sale of land 25,000
Loss on sale of building 13,000
Net loss as per P & L a/c. 3,200
Depreciation on machinery 16,000
Amortization of goodwill 8,000
Stationery expenses 5,000
(1) ` 77,200 (2) ` 8,800
(3) ` 3,200 (4) ` 25,000
Paper-III 28 J-17-16
69. The stand point of Exchange rates which seeks to define the relationship between
currencies based on relative inflation, is called ________
(1) Fixed Rate (2) Floating Rate
(3) Purchasing Power (4) Interest Rate

70. Changing Global Marketing Communication for each local market is called _______.
(1) International Marketing (2) Communication Linkage
(3) Communication Adaption (4) International Deal

71. In a market economy, when consumers influence the allocation of resources through their
demand for products, it is popularly called as what ?
(1) Cultural dynamics (2) Customer psychology
(3) Consumer sovereignty (4) Principle of maximization

72. How to enter in the Global Market ? Arrange serially.

A – Deciding wether to go abroad.
B – Deciding on the marketing organization.
C – Deciding how to enter the market.
D – Deciding on Marketing programme.
E – Deciding in which market to enter.
Codes :
(1) A, D, C, E, B (2) A, B, C, D, E
(3) A, E, C, D, B (4) B, D, C, E, A

73. When the two countries are having the gold standard, their currency units are either made
of gold specified purity and weight or freely convertible into gold of given purity at fixed
rate, this theory known as ________.
(1) Purchasing power parity (2) Mint parity theory
(3) Balance of payment theory (4) Stable Foreign Exchange Rate

74. Which among the following is associated with high-income economic and Human
Development Index (HDI) ?
(1) TRID (2) TRIM
(3) GATT (4) OECD

75. In commodity market, the foreign exchange rate is determined as per _______.
(1) Equilibrium Rate of Foreign Exchange
(2) Comparative Price of Foreign Currency
(3) Demand and Supply of Foreign Currency
(4) SDR
___________
Paper-III 30 J-17-16
 MANAGEMENT
PAPER – III
Note : This paper contains seventy five (75) objective type questions of two (2) marks each. All
questions are compulsory.

1. Which of the following are not the assumptions related to the theory of consumer
behaviour as per the cardinal utility approach ?
(i) Rational consumer
(ii) Unlimited money income
(iii) Utility cardinally measurable
(iv) Diminishing marginal utility of money
(v) Constant marginal utility of commodities
(vi) Maximization of satisfaction
(vii) Utility is additive
Code :
(1) (i), (iii), (v) and (vii) (2) (ii), (iv) and (v)
(3) (i), (iii), (iv) and (vii) (4) (vi) and (vii)

2. Which one of the following properties is not the property of isoquants in terms of inputs
and output ?
(1) Negative slope
(2) Concave to the origin
(3) Non-intersecting and non-tangential
(4) Upper isoquants represent higher level of output

3. Match the items of List – I with the items of List – II and indicate the code of their correct
matching :
List – I List – II
(i) Costs which do not take the form of cash outlays, nor do (a) Sunk costs
they appear in the accounting system
(ii) Costs which are made once and for all, and cannot be (b) Opportunity
altered, increased or decreased by varying the rate of cost
output, nor can they be recovered.
(iii) Expected returns from the second best use of the resources (c) Book costs
that are foregone due to the scarcity of resources.
(iv) Costs in the form of depreciation allowances and unpaid (d) Imputed costs
interest on the owner’s own funds
Codes :
(a) (b) (c) (d)
(1) (iv) (iii) (ii) (i)
(2) (i) (ii) (iii) (iv)
(3) (ii) (iv) (i) (iii)
(4) (ii) (iii) (iv) (i)
Paper-III 2 J-17-16
4. Which one of the following market structures has many firms with real or perceived
product differentiation and some control over price of their products ?
(1) Perfect competition (2) Monopolistic competition
(3) Oligopoly (4) Monopoly

5. Which one of the following is not covered in the study of macro economics ?
(1) Price and output determination of a commodity
(2) Inter-relationships among aggregate consumption, savings and investment
(3) Business cycles
(4) Factors and forces of economic fluctuations

6. An open system of organisational structure becomes an efficient and effective system

when it covers which four of the following ?
(a) Law of equifinality
(b) Negative entropy
(c) Self-regulating
(d) Self correction through feedback
(e) Hierarchical communication only
(f) Dynamic equilibrium
Code :
(1) (a), (b), (d) and (f) (2) (b), (c), (d) and (e)
(3) (a), (c), (d) and (f) (4) (c), (d), (e) and (f)

7. Consider the following statements :

Statement – I : Role efficacy contributes to work motivation.
Statement – II : Norms of recognition of competence cannot promote a climate of work
motivation.
Statement – III : Opportunities to influence decisions does not increase work motivation.
Statement – IV : Work motivation is always directly proportionate to the challenge the job
provides ot the individual.
Choose the correct option :
(1) Statements I and II are correct
(2) Statements I, II and IV are correct
(3) All statements are correct
(4) Statements II, III and IV are incorrect

Paper-III 4 J-17-16
8. Match the List – I with those of List – II and choose the correct code :
List – I List – II
(Thinker) (Conceptual model for human behaviour)
(a) Kierkegaard and Nietzsche (i) Behaviouristic model
(b) Sigmund Freud (ii) Eclectic model
(c) Pavlov & Watson (iii) Existentialistic model
(d) Douglas McGregor (iv) Psychoanalytic model
Codes :
(a) (b) (c) (d)
(1) (iii) (iv) (i) (ii)
(2) (i) (iii) (ii) (iv)
(3) (iv) (ii) (iii) (i)
(4) (ii) (i) (iv) (iii)

9. Which of the following is the fundamental assumption about human behaviour ?

(1) Caused behaviour (2) Goal oriented behaviour
(3) Motivated behaviour (4) All of the above

10. Assertion (A) : The interest in human relations at work has become very popular in
modern days.
Reason (R) : Social pressures brought increasing pressures for an improved human
climate in organizations.
Codes :
(1) Assertion (A) and Reasoning (R) both are correct and (R) is correct explanation of (A).
(2) Assertion (A) and Reasoning (R) both are correct, but (R) is not right explanation of (A).
(3) Assertion (A) is correct, whereas Reasoning (R) is incorrect.
(4) Reasoning (R) is correct, whereas Assertion (A) is incorrect.

11. Match the items of List – I with the items of List – II.
List – I List – II
(a) Line function (i) Administering various benefit programmes
(b) Co-ordinative (ii) Directing the activities of the people in his own
function department
(c) Staff function (iii) Ensuring that approved and adopted HR objectives,
policies and procedures are being consistently carried out
Codes :
(a) (b) (c)
(1) (i) (ii) (iii)
(2) (iii) (ii) (i)
(3) (ii) (iii) (i)
(4) (i) (iii) (ii)
Paper-III 6 J-17-16
12. A graphical method used to help identify the relationship between a measure of business
activity and staffing levels of an organization is known as :
(1) Managerial judgment (2) Trend analysis
(3) Ratio analysis (4) Scatter plot

13. Match the job evaluation method given in List – I with its characteristics given in List – II.
List – I List – II
(a) Ranking (i) Scored separately to produce overall points score for the job.
(b) Job (ii) Whole job comparisons made to place them in order of
classification importance.
(c) Factor (iii) Job grades are defined and jobs are slotted into grades by
comparison comparing the whole job description with the grade definition.
(d) Points (iv) Panel members individually compare each job in turn with all
method the others being evaluated. Points are awarded according to
whether the job is more, less or equally demanding than each
of the jobs with which it is being compared.
Codes :
(a) (b) (c) (d)
(1) (iii) (ii) (iv) (i)
(2) (i) (ii) (iii) (iv)
(3) (ii) (iii) (iv) (i)
(4) (ii) (iv) (iii) (i)

14. Assertion (A) : The stage or level at which grievance settlement takes place, is an index
of the climate or spirit that prevails in the organisation.
Reason (R) : The lower the level of settlement, the quicker the redressal of a grievance.
Codes :
(1) (A) is correct, but (R) is incorrect.
(2) (A) is incorrect, but (R) is correct.
(3) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(4) Both (A) and (R) are correct and (R) is the correct explanation of (A).

15. Extra-mural welfare activities include all those welfare activities or services or amenities,
which are undertaken :
(1) To give extra benefits to employees
(2) As surprise bonus announced to employees
(3) Outside the factories
(4) Inside the factories
Paper-III 8 J-17-16
16. Which one is not correct ?
(1) The NPV and IRR methods make the same accept/reject decisions for independent
projects.
(2) The payback period is defined as the number of years required to recover a projects’
cost.
(3) The discounted payback method discounts cash flows at the rate of interest.
(4) The NPV method assumes that cash flows will be reinvested at the firm’s cost of
capital.

17. Match the items of List – I with the items of List – II.
List – I List – II
(a) Optimum (i) strikes a balance between current dividends and
dividend policy future growth so as to maximise the stock price.
(b) Stock split (ii) a dividend paid in additional shares.
(c) Stock dividend (iii) increases the number of shares outstanding.
(d) Tax preference (iv) investors prefer to have companies retain
theory earnings.
Codes :
(a) (b) (c) (d)
(1) (i) (iv) (iii) (ii)
(2) (ii) (iv) (iii) (i)
(3) (i) (iii) (ii) (iv)
(4) (i) (ii) (iv) (iii)

18. Match the items of List – I with the items of List – II.
List – I List – II
(a) Merger (i) designed to make a company less
vulnerable to a takeover.
(b) Vertical merger (ii) a merger of companies in totally
different industries.
(c) Conglomerate (iii) the combination of two firms to form
merger a single firm.
(d) Defensive merger (iv) a merger between a firm and one of
its suppliers or customers.
Codes :
(a) (b) (c) (d)
(1) (iii) (ii) (i) (iv)
(2) (iv) (ii) (i) (iii)
(3) (iii) (iv) (ii) (i)
(4) (i) (ii) (iv) (iii)
Paper-III 10 J-17-16
19. Match items of List – I with the items of List – II.
List – I List – II
(a) Working capital (i) used to hold down inventory costs
(b) Cash conversion cycle (ii) the practice of purchasing components
(c) Just-in-time system (iii) current assets
(d) Outsourcing (iv) inventory conversion period + receivables
collection period – payables deferral period
Codes :
(a) (b) (c) (d)
(1) (iii) (i) (ii) (iv)
(2) (iii) (iv) (i) (ii)
(3) (iv) (i) (iii) (ii)
(4) (iii) (i) (iv) (ii)

20. Match the items of List – I with the items of List – II.
List – I List – II
(a) Euro Dollar (i) a bond sold by a foreign borrower but denominated in
the currency of the country in which it is sold.
(b) Foreign Bond (ii) a bond sold in a country other than the one in whose
currency the bond is denominated.
(c) Euro Bond (iii) the situation when the spot rate is greater than the
forward rate.
(d) Premium on (iv) a US dollar deposited in a bank outside the United States.
Forward Rate
Codes :
(a) (b) (c) (d)
(1) (iv) (i) (ii) (iii)
(2) (ii) (i) (iii) (iv)
(3) (iv) (ii) (iii) (i)
(4) (iii) (i) (ii) (iv)

21. Consider the following statements and indicate the correct answer :
Statement I : The holistic marketing concept is based on the development, design, and
implementation of marketing programmes, processes, and activities that recognize
their breadth and interdependencies.
Statement II : Holistic maketing acknowledges that everything matters in marketing –
and that a broad, integrated perspective is often necessary.
(1) Only Statement I is correct.
(2) Only Statement II is correct.
(3) Both Statements I and II are correct.
(4) Both Statements I and II are incorrect.
Paper-III 12 J-17-16
22. Consider the following statements related to different stages of PLC and choose the
correct code :
(a) Introduction – A period of slow growth and low profit
(b) Growth – A period of rapid market acceptance and slow profit improvement
(c) Growth – A period of rapid market acceptance and substantial profit
improvement
(d) Maturity – Sales growth and profits stabilize
(e) Maturity – Slow down in sales growth and profits stabilize
(f) Decline – Sales show a downward drift and profits erode
Code :
(1) (a), (c), (e) and (f) (2) (c), (e) and (f)
(3) (a), (b), (d) and (f) (4) (b), (e) and (f)

23. Which one of the following is a consumer goods market testing method in which the
company chooses a few representative cities and puts on a full marketing communications
campaign, and the sales force tries to sell the trade on carrying the product and giving it
good shelf exposure ?
(1) Test markets (2) Simulated test marketing
(3) Sales-wave research (4) Controlled test marketing

24. Match the items of List – I with items of List – II and select the correct code.
List – I List – II
(a) Cash refund (i) Certificates entitling the bearer to a stated saving on the
offers purchase of a specific product.
(b) Premiums (ii) Explicit or implicit promises by sellers that the product will
perform as specified or that the seller will fix it or refund
the customer’s money during a specified period.
(c) Product (iii) Merchandize offered at a relatively low cost or free as an
warranties incentive to purchase a particular product.
(d) Coupons (iv) Provide a price reduction after purchase rather than at the
retail shop.
Codes :
(a) (b) (c) (d)
(1) (i) (ii) (iii) (iv)
(2) (iii) (iv) (ii) (i)
(3) (iv) (i) (ii) (iii)
(4) (iv) (iii) (ii) (i)

25. _______ is the process of carefully managing detailed information about individual
customers and all customer “touch points” to maximize loyalty.
(1) Personalizing marketing (2) Customer empowerment
(3) Customer value management (4) Customer relationship management
Paper-III 14 J-17-16
26. Match the items of List – I with the items of List – II relating to jobs of production and
operations management and their time horizons and indicate the code of their correct
matching :
List – I List – II
(Jobs) (Time horizon)
(i) Safety and maintenance systems (a) Long time horizon
(ii) Scheduling of manpower (b) Intermediate time horizon
(iii) Purchasing policy (c) Short time horizon
Codes :
(a) (b) (c)
(1) (i) (ii) (iii)
(2) (ii) (i) (iii)
(3) (ii) (iii) (i)
(4) (i) (iii) (ii)

27. Which one of the following operations research models is categorized on the basis of the
utility of the model ?
(1) Simulation models (2) Predictive models
(3) Analogue models (4) Deterministic models

28. Which one of the following criteria of decision-making under the state of uncertainty is
based on the opportunity loss decision approach ?
(1) Maximin or Minimax (2) Laplace criterion
(3) Hurwicz criterion (4) Criterion of regret

29. Which of the following is used to know the average number of customers in the Queue
system when arrival rate is denoted by γ and service rate by µ ?
λ 1
(1) (2)
µ µ–λ
λ λ
(3) (4)
µ (µ – λ) µ–λ

30. The product control is achieved through what ?

(1) Control charts (2) Acceptance sampling plans
(3) Both (1) and (2) (4) None of the above

31. Which one of the following is a condition when sampling distribution of mean is not
normal ?
(1) Population distribution is normal and sample size is more than 30.
(2) Population distribution is not normal and sample size is small (< 30).
(3) Population distribution is not normal but sample size is large (> 30).
(4) Population distribution is normal and sample size is less than 30.
Paper-III 16 J-17-16
32. Statement – I : Exponential probability distribution is closely related with Poisson
distribution.
Statement – II : Mean, median and mode of the normal distribution are equal.
Statement – III : The standard deviation of the binomial distribution is np when n
denotes number of observations and p the probability of success.
Codes :
(1) Statements – II and III are true while Statement – I is false.
(2) Statements – I and III are true while Statement – II is false.
(3) Statements – I and II are true while Statement – III is false.
(4) All the three statements are true.

33. Which one of the following requires additional information to calculate coefficient of
correlation between two variables when the data are collected on ratio scale ?
(1) Square root of the coefficient of determination.
(2) Geometric mean of the two regression coefficients relating to two variables x and y.
(3) Covariance divided by the product of standard deviations of variables x and y.
(4) Reciprocal of the product of the standard deviations of two variables.

34. Which of the following statements are true ?

(i) The probability of making I-type error (alpha) in hypothesis testing is referred to as
the level of significance.
(ii) When the calculated value of x2 is more than the table value of x2 at given degrees
of freedom and level of significance, the null hypothesis is accepted.
(iii) Standard deviation of sampling distribution of mean is called standard error.
(iv) For one tailed test, the critical value of Z at 5% level of significance is 1.96.
Codes :
(1) (i), (iii) and (iv) (2) (ii) and (iv)
(3) (i) and (iii) (4) (ii) and (iii)

35. The industry, in which competitive advantage in one country is strongly influenced by
position in other country, is known as :
(1) Multi-domestic industry (2) Parallel industry
(3) Global industry (4) None of the above

36. Assertion (A) : BCG matrix and IE matrix both are called “portfolio matrices”.
Reason (R) : They involve plotting organisation divisions in a schematic diagram.
Codes :
(1) Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(2) Both (A) and (R) are correct and (R) is the right explanation of (A).
(3) (A) is correct, but (R) is not correct.
(4) (A) is not correct, but (R) is correct.
Paper-III 18 J-17-16
37. Match List – I and List – II relating to WTO :
List – I List – II
(Agreements) (Signing dates)
(a) SAFTA (i) 9th October, 2003
(b) FTA (with EHS) (ii) 13th August, 2009
(c) CECA (iii) 1st January, 2004
(d) GSTP (iv) 13th April, 1988
Codes :
(a) (b) (c) (d)
(1) (i) (iii) (iv) (ii)
(2) (iii) (i) (ii) (iv)
(3) (iv) (i) (ii) (iii)
(4) (ii) (iv) (iii) (i)

38. Consider the following statements with reference to “strategic management” of a

corporate :
(a) External opportunities are creating similar type of consumer across the world.
(b) The process of conducting research and gathering and assimilating external
information is sometimes called as environmental scanning.
(c) Lobbying is one activity that some organizations utilize to influence external
opportunities and threats.
(d) Relative deficiency or superiority is not a part of analysis of corporate strategy.
Indicate the correct option :
(1) Statements (b) and (c) are true, others are false.
(2) Statements (a) and (c) are true, others are false.
(3) Statements (c) and (d) are true, others are false.
(4) Statements (a) and (d) are true, others are false.

39. Consider the following statements :

Statement – I : When a company embarks on a global standardization strategy in today’s
world, it locates its manufacturing and other value chain activities.
Statement – II : Global standardization strategy need not find a structure that lowers the
bureaucratic costs of resource transfers.
Statement – III : The global product-group structure is weak in rsponsiveness to
customers.
Code :
(1) Statement II is correct, others are incorrect.
(2) Statement I & III are correct, II is incorrect.
(3) Statement I is correct, others are incorrect.
(4) Statement III is correct, others are incorrect.
Paper-III 20 J-17-16
40. Consider the following statements :
Statement – I : The entrepreneur has to be a mere manager. He (or she) may not be an
innovator and promoter as well.
Statement – II : An entrepreneur always searches for change, responds to it and exploits
it as an opportunity.
Statement – III : The government should not try to push the entrepreneurship beyond the
boundaries of a business unit.
Code :
(1) Statement I is only true, others are false.
(2) Statement II is only true, others are false.
(3) Statement II & III are true, statement I is false.
(4) All the statements are true.

41. Assertion (A) : Business opportunity is an attractive project which motivates the
entrepreneur to accept the project for making investment decision.
Reason (R) : A business possibility may take the shape of business opportunity only when
it improves social endowments.
Codes :
(1) (A) is correct, but (R) is incorrect.
(2) (A) is incorrect, but (R) is correct.
(3) Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(4) Both (A) and (R) are correct and (R) is the right explanation of (A).

42. Match List – I with List – II.

List – I List – II
(a) Intensive expansion (i) Results in a new company
(b) Vertical Integration (ii) Market penetration
(c) Merger (iii) Creation of facilities for manufacturing
(d) Conglomeration (iv) Diversification activity of product/market
extension
Codes :
(a) (b) (c) (d)
(1) (i) (iv) (iii) (ii)
(2) (iii) (i) (ii) (iv)
(3) (iv) (ii) (i) (iii)
(4) (ii) (iii) (i) (iv)
Paper-III 22 J-17-16
43. Match List – I with List – II.
List – I List – II
(Schemes for SSI) (Basic function)
(a) National Equity Fund (i) Working capital loans and long term loans
for fixed capital at one point.
(b) Small Industries Development (ii) Updated technology support to export
Fund oriented units.
(c) Technology development and (iii) Equity type support to SSI.
modernisation fund
(d) Single window scheme (iv) Refinance assistance to SSI.
Codes :
(a) (b) (c) (d)
(1) (iii) (iv) (ii) (i)
(2) (ii) (i) (iv) (iii)
(3) (i) (ii) (iv) (iii)
(4) (iv) (iii) (i) (ii)

44. What among the following is meant to assess the performance of a business in the field of
social responsibility ?
(1) Social accounting (2) Social responsibility accounting
(3) Social audit (4) Social accounting index

45. Combination I : The Classical Economical Model (CSR) – It is believed that an invisible
hand promoted public welfare.
Combination II : The Socio-economic Model (CSR) – Business is seen as on sub-system
among many in a highly interdependent society.
Codes :
(1) I is correct but II is incorrect.
(2) II is correct but I is incorrect.
(3) Both I and II are correct.
(4) Both I and II are incorrect.

46. Some of the driving forces behind the evolution of corporate social responsibility are :
(a) Concerns and expectations from citizens, public authorities, and investors.
(b) Decisions made by individuals and institutions influenced by the criteria of foreign
trade.
(c) Concerns about the impact of economic activities on the production houses.
(d) Increased transparency of business activities because of the development in
information technology.
Code :
(1) (a) and (b) (2) (a) and (c)
(3) (a) and (d) (4) (b) and (c)

Paper-III 24 J-17-16
47. As per the Indian Companies Act, 2013 a qualified Indian company is required to
contribute at least 2% of its average net profit towards corporate social responsibilities
activities. In which of the following situations the company is required to follow the
provisions ?
(1) Turnover of the company is 100 crore or more.
(2) Turnover of the company is 500 crore or more.
(3) Turnover of the company is 1,000 crore or more.
(4) Turnover of the company is 2,000 crore or more.

48. When an employee is transferred to an international location and his salary reflects his
home country’s salary with allowances added for cost-of-living differences, the employer
has used a _____ salary plan.
(1) Cost-of-living (2) host based
(3) home based (4) transfer

49. Assertion (A) : Distributive bargaining is also termed as ‘zero sum’ game.
Reason (R) : It results in one party’s gain with loss of other party.
Codes :
(1) (A) is correct, but (R) is incorrect.
(2) (A) is incorrect, but (R) is correct.
(3) Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(4) Both (A) and (R) are correct and (R) is the right explanation of (A).

50. Match the List – I with List – II relating to the forms of industrial disputes.
List – I List – II
(a) Primary strikes (i) Sympathetic strike
(b) Secondary strike (ii) Dissuading those who go to work during strike
(c) Gherao (iii) Wildcat strike
(d) Picketing (iv) Involves criminal conspiracy
Codes :
(a) (b) (c) (d)
(1) (ii) (i) (iii) (iv)
(2) (iii) (i) (iv) (ii)
(3) (iv) (iii) (ii) (i)
(4) (iv) (iii) (i) (ii)
Paper-III 26 J-17-16
51. Choose the correct code :
Statement – I : Decide on the nature and amounts of incentives to be paid to subordinates
is a department supervisor’s (line) activity.
Statement – II : Conducting job evaluation procedures aimed at determining relative
worth of each job in the organization is a HR Specialists’ (staff) activity.
Code :
(1) Both I and II are correct.
(2) Both I and II are incorrect.
(3) Only I is correct.
(4) Only II is correct.

52. Match List – I and List – II relating to approaches to labour welfare :

List – I List – II
(a) The police theory (i) Employees becoming more
organised & conscious.
(b) The philanthropic theory (ii) Affection to mankind/workers
(c) The placating theory (iii) Compulsions imposed on
employees
(d) The functional theory (iv) Also called efficiency theory
Codes :
(a) (b) (c) (d)
(1) (i) (ii) (iv) (iii)
(2) (ii) (iv) (i) (iii)
(3) (iii) (ii) (i) (iv)
(4) (iv) (iii) (ii) (i)

53. From the following statements, select the correct answer :

Statement – I : Establishing the day-to-day climate of mutual respect and trust needed to
maintain healthy labour management relations is HR specialists’ (staff) activity.
Statement – II : Diagnosing underlying causes of labour discontent with an eye toward
anticipating the sorts of morale and other problems that may lead to unionization
efforts is a department supervisors’ (line) activity.
Code :
(1) Only statement I is correct.
(2) Only statement II is correct.
(3) Both statements I and II are correct.
(4) Both statements I and II are wrong.

54. The appointment of Labour Welfare Officer in Indian Industry was recommended
primarily by which of the following ?
(1) The Contract Labour (Regulations and Abolition) Act, 1970.
(2) The Industrial Disputes Act, 1947.
(3) The Royal Commission on Labour, 1931.
(4) Shri. V.V. Giri Committee.
Paper-III 28 J-17-16
55. Consider the following statements and indicate the correct answer :
Statement – I : Companies that adopt value pricing win loyal customers by charging
reasonable price for a high-quality offering.
Statement – II : Value pricing is a matter of re-engineering the company’s operations to
become a low-cost producer without sacrificing quality.
Codes :
(1) Only statement I is correct.
(2) Only statement II is correct.
(3) Both statements I and II are correct.
(4) Both statements I and II are wrong.

56. Which one of the following is true for value marketing ?

(1) The strategy of offering consumers lesser quality at a low price.
(2) The strategy of offering consumers reasonable quality at a fair price.
(3) The strategy of offering consumers high quality at a low price.
(4) The strategy of offering consumers luxury quality at a high price.

57. Match the items of List – I with the items of List – II and select the correct code :
List – I List – II
(a) Visualization (i) Give people an incomplete or ambiguous stimulus
and ask them to complete or explain it.
(b) Word association (ii) It requires people to create a collage from magazine
test photos or drawings to depict their perceptions.
(c) Item substitution (iii) To identify the range of possible brand associations,
ask people what words come to mind when they
hear the brand’s name.
Codes :
(a) (b) (c)
(1) (ii) (iii) (i)
(2) (i) (ii) (iii)
(3) (iii) (ii) (i)
(4) (ii) (i) (iii)

58. _____ aims to stimulate repeat purchase of products and services.

(1) Reinforcement advertising (2) Informative advertising
(3) Persuasive advertising (4) Reminder advertising
Paper-III 30 J-17-16
59. Match the items of List – I with the items of List – II.
List – I List – II
(a) Market testing (i) Will this product meet our profit goal ?
(b) Business analysis (ii) Have we got a technically and
commercially sound product ?
(c) Product development (iii) Have product sales met expectations ?
(d) Commercialization (iv) Are product sales meeting expectations ?
Codes :
(a) (b) (c) (d)
(1) (iii) (i) (iv) (ii)
(2) (i) (ii) (iii) (iv)
(3) (iii) (i) (ii) (iv)
(4) (i) (iii) (iv) (ii)

60. Which of the following factors are considered when setting the advertising budget ?
(a) Stage of the product life cycle
(b) Market share and consumer base
(c) Competition and clutter
(d) Advertising frequency
(e) Product substitutability
Code :
(1) (a), (b), (c), (d) and (e) (2) (a), (b) and (c)
(3) (a), (b), (c) and (d) (4) (b), (c), (d) and (e)

61. Match the items of List – I with the items of List – II and select the correct code :
List – I List – II
(a) Penetrated market (i) The part of the qualified available market the
company decides to pursue.
(b) Target market (ii) The set of consumers with a sufficient level of
interest in a market offer.
(c) Available market (iii) The set of consumers who are buying the
company’s product.
(d) Potential market (iv) The set of consumers who have interest,
income, and access to a particular offer.
Codes :
(a) (b) (c) (d)
(1) (ii) (i) (iv) (iii)
(2) (i) (ii) (iii) (iv)
(3) (iv) (ii) (iii) (i)
(4) (iii) (i) (iv) (ii)
Paper-III 32 J-17-16
62. Match the items of List – I with the items of List – II.
List – I List – II
(a) Financial leverage (i) the extent to which fixed costs are used.
(b) Operating leverage (ii) Modigliani and Miller.
(c) Trade-off theory of (iii) the riskiness inherent in the firm’s
capital structure operations if it uses no debt.
(d) Business risk (iv) the extent of use of fixed income
securities in firm’s capital structure.
Codes :
(a) (b) (c) (d)
(1) (ii) (iv) (i) (iii)
(2) (iv) (ii) (iii) (i)
(3) (iv) (iii) (ii) (i)
(4) (iv) (i) (ii) (iii)

63. Which one is a true statement ?

(1) A merger in which the firms involved will be operated as a single unit and from
which no operating economies are expected is financial merger.
(2) A merger in which operations of the firms involved are integrated in hope of
achieving synergistic benefits is called operating merger.
(3) Goodwill refers to the excess paid for a firm above the appraised value of the
physical assets purchased.
(4) A joint venture is a corporate alliance in which two or more companies combine all
their resources to achieve a specific objective.

64. Which one of the following statements is true ?

(1) Market risk premium is the additional return over the risk-free rate needed to
compensate investors for assuming an average amount of risk.
(2) A firm cannot influence its market risk, hence its beta, through changes in the
composition of its assets and also through its use of debt.
(3) Market risk premium is the additional return over the risk-free rate needed to
compensate investors for assuming greater than average amount of risk.
(4) An asset’s risk consists of market risk which can be eliminated by diversification.

65. A company has a total investment of 5,00,000 in assets, and 50,000 outstanding shares
at 10 per share (par value). It earns a rate of 15% on its investment, and has a policy of
retaining 50% of the earnings. If the appropriate discount rate of the firm is 10%,
determine the price of its share using Gordon’s model.
(1) 15 (2) 30
(3) 10 (4) 50

66. A project will cost 40,000. Its stream of earnings before depreciation and taxes during
first year through five years is expected to be 10,000, 12,000, 14,000, 17,000 and
19,000. Assume a 50% tax rate and depreciation on straight line method. The average
rate of return of the project is :
(1) 36% (2) 40%
(3) 55.56% (4) 16%
Paper-III 34 J-17-16
67. Match the items of List – I with List – II.
List – I List – II
(a) Credit limit (i) Criteria which a firm follows in selecting
customers for the purpose of credit extension.
(b) Cash discount (ii) Specifies duration of credit and terms of payment
by customers.
(c) Credit standards (iii) Maximum amount of credit which the firm will
extend at a point of time.
(d) Credit terms (iv) Given for receiving payments before than the
normal credit period.
Codes :
(a) (b) (c) (d)
(1) (iii) (i) (iv) (ii)
(2) (ii) (iv) (iii) (i)
(3) (iii) (iv) (i) (ii)
(4) (ii) (iv) (i) (iii)
68. Which one of the following statements is false ?
(1) Derivatives are securities whose values are determined by the market price of some
other assets.
(2) Derivatives include options, whose values depend on the price of some underlying asset.
(3) A natural hedge is a transaction between two counter parties where both parties’
risks are reduced.
(4) The Black-Scholes Option Pricing Model (OPM) can be used to estimate the value
of a put option.
69. The buying and selling of commodity, in case of foreign currency, that has both element
of risks and chance of great profit is called
(1) Arbitrage (2) Gambling
(3) Speculation (4) Negotiation

70. The segment of foreign exchange market which comprises of banks and financial
institutions is called as
(1) FERA (2) Exchange Traded Market
(3) OTC market (4) Spot market

71. Consider the following statements :

Statement – I : GATT was formed to decide quotas and increase tariffs.
Statement – II : RTAs replaced GATT in 1995.
Statement – III : Any sort of discrimination was prohibited as fundamental principle in
GATT.
Code :
(1) Statement I and III are correct and II is incorrect.
(2) Only statement III is correct.
(3) Only statement I is correct.
(4) All above statements are correct.
Paper-III 36 J-17-16
72. Under which of the following system
expansion in government expenditure
income ?
(1) Fixed exchange rate system
(3) Balance of payment equilibrium
of perfect capital, mobility increase in exports or
or a tax cut, does not affect equilibrium level of
(2) Flexible exchange rate system
(4) Changes in money supply

73. Assertion (A) : Companies face different competitive situations depending on the
products, strategies and countries where they operate.
Reason (R) : A company’s competitive strategy influences how and where it can operate.
Codes :
(1) (A) is correct and (R) is incorrect.
(2) (A) is incorrect and (R) is correct.
(3) Both are correct and (R) is the right explanation of (A).
(4) Both are correct, but (R) is not right explanation of (A).

74. Match List – I with List – II relating to legal system in the world.
List – I List – II
(a) Common law system (i) Codified legal system
(b) Civil law system (ii) Based on wisdom of daily experience
(c) Theocratic law system (iii) Based on traditional and case judgement
(d) Customary law system (iv) Based on religious precepts
Codes :
(a) (b) (c) (d)
(1) (iii) (i) (iv) (ii)
(2) (i) (iii) (ii) (iv)
(3) (iv) (iii) (i) (ii)
(4) (i) (iv) (ii) (iii)

75. Consider the following statements :

Statement – I : Stakeholder cannot influence how and whether companies operate
through FDI.
Statement – II : The effort to create favourable political relations has led many countries
to replace obstacals to FDI with incentives for FDI.
Statement – III : The effect of a multinational enterprise activities may be simultaneously
positive for one national objectives and negative for another.
Codes :
(1) Only statements I & III are correct.
(2) Only statement I is correct.
(3) Only statement III is correct.
(4) All statements are correct.
ZZZZZZZZZZZZ

Paper-III 38 J-17-16
 MANAGEMENT
PAPER – III
Note : This paper contains seventy five (75) objective type questions of two (2) marks each. All
questions are compulsory.

1. From the following two statements of Assertion (A) and Reasoning (R), indicate the
correct code :
Assertion (A) : The quantity of a product demanded invariably changes inversely to
changes in its price.
Reason (R) : The price effect is the net result of the positive substitution effect and
negative income effect.
Codes :
(1) (A) and (R) both are correct.
(2) (A) is incorrect but (R) is correct.
(3) (A) is correct but (R) is incorrect.
(4) (A) and (R) both are incorrect.

2. Match the items of the List – I with that of the List – II and suggest the correct code from
the following :
List – I List – II
i. Cost function a. Kinked demand
ii. Supply function b. Isoquants
iii. Production function c. Engineering method
iv. Oligopoly d. Factor prices
Codes :
i ii iii iv
(1) c d a b
(2) b a c d
(3) a b d c
(4) d c b a

3. Which one of the following combinations may not render the investment multiplier
inapplicable ?
(1) Net imports, undistributed profits and taxation.
(2) Excess stocks of consumption goods, debt cancellation and savings.
(3) Price inflation, public investment programmes and strong liquidity preference.
(4) Closed economy, unemployment in the economy, constant marginal propensity to
consume.
Paper-III 2 JA-017-17
4. Match the items of the List – I with that of the List – II and suggest the correct code from
the following :
List – I List – II
i. Competitive Parity a. Variations in Advertising
ii. Promotional Elasticity of Market b. Level advertising
iii. Optimal promotional mix c. Advertising expenditure decision
iv. Contra-cycle advertising d. Marginal equivalency of media outlay
Codes :
i ii iii iv
(1) b c a d
(2) a b c d
(3) b a d c
(4) d a b c

5. Match the following and indicate the code of correct matching :

List – I List – II
a. Classical conditioning i. Response-Stimulus learning
b. Operant conditioning ii. Stimulus-Response learning
c. Cognitive theory iii. Stimulus-Stimulus learning
d. Social learning iv. Modelling process
Codes :
a b c d
(1) ii iii iv i
(2) ii i iii iv
(3) i ii iii iv
(4) iv iii ii i

6. Boss offers an employee a promotion which has huge increase in salary along with a new
title. It also requires employee to work ten hours more per week along with shifting to a
remote place. It is an example of which one of the following ?
(1) Approach conflict
(2) Approach – Approach conflict
(3) Approach – Avoidance conflict
(4) Avoidance – Avoidance conflict

7. Which one of the following is not an example of semantic barrier ?

(1) Poorly chosen words and phrases
(2) Faulty translation
(3) Use of symbols that have various meanings
(4) Guarding against certain type of information
Paper-III 4 JA-017-17
8. Assertion (A) : Equity theory of work motivation is based on social exchange process,
in which individuals make contributions (inputs) and expect certain
rewards (outcomes).
Reason (R) : Individuals decide whether or not a particular exchange is satisfactory
by comparing their inputs and outcomes with those of others and try to
rectify inequality.
Codes :
(1) (A) is correct but (R) is not correct.
(2) (A) is not correct but (R) is correct.
(3) Both (A) and (R) are correct and (R) is right explanation of (A).
(4) Both (A) and (R) are correct but (R) is not the right explanation of (A).

9. Which one of the following methods of performance appraisal involves ranking

employees from best to worst in a particular trait ?
(1) Graphic Rating Scale method (2) Forced Distribution method
(3) Paired Comparison method (4) Alternation Ranking method

10. Which one of the following is not a basic feature of ‘Scanlon Plan’ ?
(1) Philosophy of competition (2) Identity
(3) Competence (4) Involvement system

11. A union of electricians working in different industries is called by which one of the
following ?
(1) Craft Union (2) Industrial Union
(3) General Union (4) National Union

12. Which one of the following is not correct about voluntary retirement scheme in public
enterprises ?
(1) It was designed to help enterprises rationalise their surplus manpower.
(2) Salary for the purpose of VRS consists of basic pay only.
(3) Benefits are in addition to money that has accrued to provident fund.
(4) Benefit is tax-free severance payment.

13. In case Mutual Funds invest in the securities whose price variations suggest the general
price movement, it is called
(1) Hedge Fund (2) Index Fund
(3) Growth Fund (4) Balanced Fund

14. Indicate the correct code of the combinations of the following methods commonly used
for capital budgeting
a. Payback Period
b. Profitability Index
c. Utility theory
d. Internal rate of return
Codes :
(1) a, b and c (2) b, c and d
(3) a, b and d (4) a, c and d
Paper-III 6 JA-017-17
15. Match the items of List – I with those of List – II and indicate the correct code from the
following :
List – I List – II
i. Sale of existing firm to the management a. Reverse synergy
ii. Financing acquisition with substantial b. Management buyout
secured borrowings
iii. Firms demerged worth more to other c. Reverse capital budgeting
firms
iv. Cash inflows on demerger at present at d. Leveraged buyout
the sacrifice in form of cash out-flow on
transfer of division/asset
Codes :
i ii iii iv
(1) a b c d
(2) c a b d
(3) b d a c
(4) b a d c

16. NPV and IRR methods of investment evaluation may give divergent accept-reject
decisions on account of which of the following ?
a. Varying initial investment
b. Divergent cash flows from the investment projects
c. Disparity in the lives of the investment projects
Indicate the correct code of their combinations
Codes :
(1) a and b only (2) b and c only
(3) a and c only (4) a, b and c all

17. Match the items of List – I with the items of List – II and select the code of correct
matching :
List – I List – II
a. Latent demand i. More consumers would like to buy the
product than can be satisfied.
b. Full demand ii. Consumers may be attracted to products that
have undesirable social consequences.
c. Overfull demand iii. Consumers may share a strong need that
cannot be satisfied by an existing product.
d. Unwholesome demand iv. Consumers are adequately buying all
products put into the market place.
Codes :
a b c d
(1) iii i iv ii
(2) iii iv i ii
(3) iv iii i ii
(4) i ii iii iv
Paper-III 8 JA-017-17
18. Match the items of List – I with the items of List – II and select the code of correct
matching :
List – I List – II
(Medium of Mass (Limitations)
Communication)
a. Outdoor i. Relative high cost; increasing consumer
resistance
b. Yellow pages ii. Over production could lead to runaway costs
c. Brochures iii. High competition; long ad purchase lead time;
creative limitations
d. Telephone iv. Limited audience selectivity; creative limitations
Codes :
a b c d
(1) iv iii ii i
(2) i ii iii iv
(3) iii ii iv i
(4) iv ii i iii

19. “The manufacturer threatens to withdraw a resource or terminate a relationship if

intermediaries fail to cooperate”, refers to which one of the following channel power ?
(1) Referent power (2) Coercive power
(3) Legitimate power (4) Reward power

20. Assertion (A) : A company’s positioning and differentiation strategy must change over
the product life cycle.
Reason (R) : A company’s product, market and competitors change over the product
life cycle.
Codes :
(1) (A) is correct, but (R) is incorrect.
(2) (A) is incorrect but (R) is correct.
(3) Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(4) Both (A) and (R) are correct, and (R) is the right explanation of (A).

21. The following information is given :

Expected usage of 50,000 units in a period of 250 days
Cost of processing an order ` 20 per order
Carrying cost per unit ` 0.50 for the period lead time on an order : 5 days
Company wants to keep a reserve supply of two day’s usage.
How many units will be included in the reorder point ?
(1) 2000 (2) 1000
(3) 400 (4) 1400
Paper-III 10 JA-017-17
22. Statement – I : A variable in the Linear Programming problem representing the unused
quantity of an input resource is called surplus variable.
Statement – II : Values of the variables in the objective function of the dual of a primary
problem denote shadow prices of the variables.
Codes :
(1) Both the Statements are correct.
(2) Both the statements are incorrect.
(3) Statement – I is correct while Statement – II is incorrect.
(4) Statement – I is incorrect while Statement – II is correct.

23. The least amount of time an activity is expected to consume. Which one of the following
relates to the above expression as per PERT language ?
(1) Expected time (2) Most likely time
(3) Optimistic time (4) Pessimistic time

24. Which one of the following is not covered while considering the types of costs involved in
quality control ?
(1) Preventive costs (2) Manufacturing costs
(3) Inspection costs (4) Failure costs

25. Match the items of List – I with the items of List – II and indicate the code of correct
matching :
List – I List – II
a. The parameters of the distribution are i. Normal distribution
n and p
b. The mean and the variance of the ii. Exponential distribution
distribution are identical
c. The mean and the standard deviation iii. Binomial distribution
of the distribution determines central
location and spread respectively.
d. The graph of the probability density iv. Poisson distribution
function of the distribution slopes
downward to the right from its
maximum mean value
Codes :
a b c d
(1) iii iv i ii
(2) i ii iii iv
(3) iv iii i ii
(4) iii i iv ii

26. When a researcher wants to select a representative sample to assess different parameters
from a large sized finite heterogeneous population, which one of the following sampling
techniques is the most appropriate ?
(1) Judgemental sampling (2) Simple random sampling
(3) Stratified random sampling (4) Quota sampling
Paper-III 12 JA-017-17
27. Statement – I : The mean of the sampling distribution of mean is equal to the parameter
value of the population mean.
Statement – II : Stratified sampling technique is unrestricted probability (random)
sampling technique.
Codes :
(1) Both the Statements are correct.
(2) Both the Statements are incorrect.
(3) Statement – I is correct while Statement – II is incorrect.
(4) Statement – I is incorrect while Statement – II is correct.

28. You are given the following information about advertising expenditure and sales :
(` in lakh)
Advertisement (X) Sales (Y)
Arithmetic mean 10 90
Standard Deviation 3 12
Correlation coefficient between advertising expenditure and sales = 0.80. What is the
likely sales for advertising budget of ` 15 lakh ?
(1) 120 lakh (2) 106 lakh
(3) 58 lakh (4) 48 lakh

29. Assertion (A) : McDonald’s India Pvt. Ltd., the wholly-owned subsidiary of the US
based fast-food giant McDonald’s Corporation, along with Coca-Cola,
is developing a fruit based beverage, to be retailed exclusively at
McDonald’s outlets.
Reason (R) : Organizations rightly try to diversify in order to spread their risks across
several industries.
Codes :
(1) (A) and (R) both are correct and (R) is the right explanation of (A).
(2) (A) and (R) both are correct but (R) is not the right explanation of (A).
(3) (A) is correct but (R) is incorrect.
(4) (R) is correct but (A) is incorrect.

30. Statement – I : Competitors analysis begins with identification of potential competitors.

Statement – II : An industry analysis gives information regarding probable sources of
competition.
Codes :
(1) Statement – I is correct but II is incorrect.
(2) Statement – II is correct but I is incorrect.
(3) Both the Statements are correct.
(4) Both the Statements are incorrect.

31. Strategic management consists of which one of the following combinations :

(a) Environmental scanning
(c) Strategy formulation
(e) Evaluation and control
Codes :
(1) (a), (b), (c) and (d) only
(3) (a), (c), (d) and (e) only
Paper-III
(b) Strategy for outplay
(d) Strategy implementation
(2) (b), (c), (d) and (e) only
(4) (b), (c) and (d) only
14 JA-017-17
32. Michael Porter’s Five Forces Model includes which one of the following combinations ?
(a) Threat of new potential entrants
(b) Threat of substitute product / service
(c) Bargaining power of suppliers
(d) Bargaining power of buyers
(e) Rivalry among current competitors
(f) Rivalry among prospective competitors
Codes :
(1) (a), (c), (d), (e) and (f) (2) (a), (b), (d), (e) and (f)
(3) (a), (b), (c), (e) and (f) (4) (a), (b), (c), (d) and (e)

33. Which one of the following is not a common motivation of an entrepreneur ?

(1) Desire to maintain the status quo
(2) Search for more rewarding work
(3) Search for personal and professional growth
(4) Desire for independence

34. The SFURTI programme of the government is to boost production in which one of the
following industries ?
(1) Auto-components industry (2) Industries using renewable energy
(3) Khadi and village industry (4) Construction industry

35. Match the items of List – I with the items of List – II and identify the correct code of
combination :
List – I List – II
a. Entrepreneurship and Dynamic Capitalism i. A.D. Chandler Jr.
b. The Affluent Society ii. J.K. Galbraith
c. Theory of Economic Development iii. Joseph Schumpeter
d. The Dynamics of Industrial Capitalism iv. B.A. Kirchhoff
Codes :
a b c d
(1) i iii ii iv
(2) i ii iii iv
(3) iv iii ii i
(4) iv ii iii i

36. Statement – I : Entrepreneurs recognize opportunities where others see chaos or

confusion.
Statement – II : Entrepreneurs bring aggressive capital for the existing business in
traditional market place.
Codes :
(1) Statement – I is correct but II is not correct.
(2) Statement – II is correct but I is not correct.
(3) Both the Statements are correct.
(4) Both the Statements are incorrect.
Paper-III 16 JA-017-17
37. Social responsibility of business while appropriating natural resources by a corporate
entity has been recommended in which one of the following ?
(1) Montreal Protocol of 1987
(2) Millennium Development Goals 2008
(3) Sustainable Development Goals 2015 in Global Sustainability Report
(4) UNDP Human Development Report

38. Disclosure of corporate governance practice and its compliance has been stipulated in
which one of the following ?
(1) Directors’ Responsibility Statement under Section 134 of the Companies Act 2013.
(2) Auditor’s Report
(3) C.A.G. Report
(4) Report of the SEBI and MCA 21

39. Kumar Mangalam Birla Committee Report, Ramesh Chandra Committee Report, Cadbury
Committee Report primarily focus on which one of the following ?
(1) ethical issues in business practice and marketing practice
(2) health programme of the employees in an organisation
(3) issues relating to corporate governance practice
(4) gender issues in management and equality for all

40. ‘The continuing commitment by business to behave ethically and contribute to economic
development while improving the quality of life of the workforce and their families as
well as of the local community and society at large.
This may be attributed rightly to which one of the following ?
(1) ethical responsibility of business
(2) corporate social responsibility
(3) commitment towards employee welfare
(4) compliance with the provisions of the Plantation Workers Act.

41. Arrange the steps of diagnostic model of human resource management in the correct
sequence from the first to the last. Select the code of correct sequence :
a. Evaluate
b. Prescribe
c. Diagnose
d. Implement
Codes :
(1) c, b, a, d (2) c, b, d, a
(3) a, c, d, b (4) a, c, b, d

42. Which one of the following is a training technique in which trainees act out parts in a
realistic management situation ?
(1) Action learning (2) Role playing
(3) Behaviour modelling (4) Case study
Paper-III 18 JA-017-17
43. Match the following and indicate the code of correct matching :
List – I List – II
a. INTUC i. Bhartiya Janta Party
b. AITUC ii. Communist Party of India
c. BMS iii. Indian National Congress
d. CITU iv. Communist Party of India (Marxist)
Codes :
a b c d
(1) iii ii i iv
(2) iii i ii iv
(3) iii iv ii i
(4) iii iv i ii

44. The agreement arrived at during the course of conciliation proceeding in industrial
disputes is known as
(1) Settlement (2) Award
(3) Reward (4) Accord and sanction

45. Results of a period that may occur at the initial career entry when the new employee’s
high job expectations confront the reality of a boring, unchallenging job.
This may rightly be attributed to which one of the following ?
(1) Reality Shock (2) Mentoring Shock
(3) Mental upcharge (4) Career upset

46. The two dominant aspects of industrial relations scene in the modern industrial society are
covered in which one of the following ?
(1) Conflict and conciliation (2) Cooperation and conciliation
(3) Conflict and cooperation (4) Cooperation and codetermination

47. The decision of the adjudication authority and arbitrator in disputes is termed as
(1) Settlement (2) Award
(3) Reward (4) Accord and approval

48. In case of a domestic enquiry, which one of the following is not correct about enquiry
officer ?
(1) He has to follow the principles of natural justice.
(2) He can recommend punishment alongwith the report of findings.
(3) He is generally an officer of the establishment but in some cases enquiry is also held
by some outside agency.
(4) He can take final decision about punishment and issue an order inflicting
punishment.
Paper-III 20 JA-017-17
49. Match the items of List – I with the items of List – II and select the code of correct
matching :
List – I List – II
a. Core benefit i. Bed, bathroom, towel, desk and closet
b. Basic product ii. Clean bed sheet
c. Expected product iii. Rest and sleep
Codes :
a b c
(1) i ii iii
(2) iii ii i
(3) iii i ii
(4) ii i iii

50. Select the correct sequence of steps in setting a pricing policy :

(a) Determining Demand
(b) Analyzing competitors’ Costs, Prices and Offers
(c) Selecting the Final Price
(d) Selecting the Pricing Objective
(e) Estimating costs
(f) Selecting a pricing method
Codes :
(1) (d), (a), (e), (b), (f) and (c)
(2) (a), (e), (b), (d), (f) and (c)
(3) (a), (b), (e), (d), (f) and (c)
(4) (a), (b), (c), (d), (e) and (f)

51. Which one of the following is a digital communications technique that involves improving
visibility and monitoring sentiment within social networks and blogs ?
(1) Email marketing (2) Display advertising
(3) E-PR (4) Search engine optimization

52. Which one of the following is the report of the company’s strengths and weaknesses
relative to various competitors ?
(1) Competitor value analysis
(2) Customer value analysis
(3) Customer profitability analysis
(4) Customer perceived value

53. A company prices a 2 litre bottle of its mineral water at ` 30 but 60 ml of the same water
in a moisturizer spray for ` 75. This is an example of which one of the following pricing
practices ?
(1) Product-Form pricing (2) Customer-segment pricing
(3) Image pricing (4) Location pricing
Paper-III 22 JA-017-17
54. Assertion (A) : Companies must manage service quality by understanding the effects of
each service encounter.
Reason (R) : Customer’s expectations play a critical role in their service experiences
and evaluations.
Select the correct codes :
Codes :
(1) Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(2) Both (A) and (R) are correct and (R) is the right explanation of (A).
(3) (A) is correct but (R) is incorrect.
(4) (R) is correct but (A) is incorrect.

55. Statement – I : Direct marketing is a non-interactive marketing system.

Statement – II : Direct marketing uses one or more media to effect a measurable
response or transaction at any location.
Select the correct code :
Codes :
(1) Both the Statements are correct.
(2) Both the Statements are incorrect.
(3) Only Statement – I is correct.
(4) Only Statement – II is correct.

56. Which one of the following refers to “two or more unrelated companies put together
resources or programmes to exploit an emerging market opportunity” ?
(1) Holistic marketing (2) Horizontal marketing system
(3) Hub and spoke system (4) Co-branding

57. Credit sales of a firm in a certain year amounted to ` 12,00,000 and the sundry debtors
outstanding at the beginning and the end of the year amounted to ` 1,20,000 and ` 80,000
respectively. Indicate the correct code for the debtors turnover ratio and the average
collection period from the following :
(1) 10 and 1.2 months (2) 12 and 1 month
(3) 15 and 0.8 month (4) 6 and 2 months

58. Inventory control system concerns with which combination of the following :
a. ABC Inventory system
b. JIT system
c. Re-ordering system
d. Outsourcing system
Codes :
(1) a, b and c (2) b, c and d
(3) a, b and d (4) a, c and d
Paper-III 24 JA-017-17
59. The credit policy of a firm is not decided for which combination of the following ?
a. Maximisation of sales
b. Minimisation of bad debt losses
c. Maximisation of shareholder’s wealth
d. Minimisation of adverse effect on the volume of sales
Codes :
(1) a, b and c (2) b, c and d
(3) a, c and d (4) a, b and d
60. Match the items of List – I with those in List – II and indicate the correct code for the following :
List – I List – II
i. Concentration Banking a. William J. Baumol
ii. Optimum cash balance under certainty b. Cash collection technique
iii. Playing the float c. Miller M.H. and Orr D
iv. Optimum cash balance under uncertainty d. Cash disbursement technique
Codes :
i ii iii iv
(1) a c b d
(2) b a d c
(3) c d a b
(4) d b c a
61. Indicate the correct code for the liquidity ratios from the following :
a. Current Ratio b. Acid Test/Quick Ratio
c. Total Assets Turnover Ratio d. Defensive-Interval Ratio
Codes :
(1) a, b and c (2) b, c and d
(3) a, b and d (4) a, c and d
62. Non-payment by solvent debtor till due date involves which one type of cost from the following ?
(1) Default cost (2) Delinquency cost
(3) Capital cost (4) Extra collection cost
63. Banks normally provide working capital finance in forms of which combination of the
following ?
a. Term loans b. Discounting of bills
c. Overdrafts d. Cash credits
Codes :
(1) a, b and c (2) b, c and d
(3) a, b and d (4) a, c and d
64. In case a product’s selling price (per unit) is ` 20, the variable cost (per unit) is ` 14, fixed
factory overheads, (per year) is ` 5,40,000 and fixed selling overheads is ` 2,52,000, the
break-even in terms of sales volume and the number of units to be sold to earn a profit of
` 60,000 will be which one of the following ?
Break-even Volume of Sales and Units to be sold for the desired profits
(1) ` 24,60,000 and 1,36,000 units
(2) ` 25,40,000 and 1,40,000 units
(3) ` 26,40,000 and 1,42,000 units
(4) ` 28,60,000 and 1,48,000 units
Paper-III 26 JA-017-17
65. Anti dumping duty is levied on which one of the following :
(1) The goods exported from home country to encourage more export to a sovereign.
(2) The goods imported into the home country for the purpose of re-export to another
sovereign.
(3) The dumped imports which is causing damage to the domestic industry in the
importing country.
(4) The dumped imports which are meant for re-entry into a sovereign for further trade.

66. Assertion (A) : Export Processing Zones (EPZs) were set up as an enclave separated
from the Domestic Tariff Area (DTA) and converted into SEZs.
Reason (R) : The Export Oriented Units (EOUs) scheme is complimentary to the
EPZ and is introduced to enable exporters enjoy liberal package of
incentives.
Codes :
(1) (A) is correct but (R) is incorrect.
(2) (A) is incorrect but (R) is correct.
(3) Both (A) and (R) are correct but (R) is not the right explanation of (A).
(4) Both (A) and (R) are correct and (R) is the right explanation of (A).

67. Challenges before international business such as base erosion and profit shifting (BEPs),
tax avoidance and shifting between a holding company and a subsidiary located in two
different tax sovereigns may be resolved by which one of the following ?
(1) Mandate of Viena convention
(2) Montreal protocol
(3) Technology transfer transactions, cyber space
(4) Kyoto protocol

68. An efficient dispute settlement mechanism under WTO was brought in by which one of
the following :
(1) The Uruguay Round Agreement
(2) Doha Round
(3) UNDP Human Development Report 2000
(4) The Uruguay and Geneva Round of Negotiation

69. The undernoted items may be categorized into which one of the following ?
Export quota, exchange control, profit remittance restrictions, subsidies, government
procurement
(1) Tariffs (2) Unrestricted tariffs
(3) Non-tariff barriers (4) Hybrid of tariff and no-tariff barriers

70. The undernoted items are categorized into which one of the following international
product decisions for global business ?
Straight extension, product adaptation, communication extension, communication
adaptation, product extension, dual adaptation and innovation
(1) Product diversification
(2) Product market segmentation
(3) Product communication strategies
(4) Market segmentation and product promotion
Paper-III 28 JA-017-17
71. Match the items given in List – I with the items of List – II and indicate the code of
correct matching :
List – I List – II
a. CIP i. Carriage
b. CPT ii. Insurance and carriage
c. DAF iii. Freight, cost, insurance
d. CIF iv. Frontier
Codes :
a b c d
(1) ii i iv iii
(2) i ii iii iv
(3) iii ii iv i
(4) iv iii ii i

72. To comply with the requirement of TRIPS agreement and to protect products of Indian
origin, which one of the following was enacted ?
(1) WTO Compliance Act 1999
(2) Geographical Indication of Goods (Registration and Protection) Act 1999
(3) The Patents Act
(4) The Copyright Act

73. Which one of the following transactions can be carried on without any restriction or
regulation of the RBI under the FEMA ?
(1) Transfer or issue of any foreign security by a person resident in India.
(2) Transfer or issue of any security by a person resident outside India.
(3) Drawal of foreign exchange for payments due on account of amortization of loans or
for depreciation of direct investment.
(4) Export, import or holding of currency notes.

74. In international marketing, market selection process is generally done by considering

which one of the following ?
(1) Farm related factors, market related factors, central banking measures related factors
(2) Farm related factors, market related factors.
(3) Market related factors, non-farm related factors, government related factors.
(4) Farm related factors, capital market related factors, and central banking measures
related factors.

75. The exit of Great Britain from the European Union (EU) in June 2016 by a referendum has
been announced as invalid by the London High Court on which one of the following reasons ?
(1) Referendum has got no legal sanction
(2) Exit was not as per the British law.
(3) Exit was not as per the EU law.
(4) The Brexit cannot be legal under Article 50 without approval of the British Parliament.
___________
Paper-III 30 JA-017-17
 MANAGEMENT
PAPER - III

Note : This paper contains seventy five (75) objective type questions of two (2) marks each.
All questions are compulsory.

1. Match the items of the List - I with those of the List - II and indicate the correct code :

List - I List - II

(a) Positive income elasticity (i) Substitute goods

(b) Negative income elasticity (ii) Complementary goods

(c) Positive cross elasticity (iii) Inferior goods

(d) Negative cross elasticity (iv) Superior goods

Code :

(a) (b) (c) (d)

(1) (ii) (i) (iv) (iii)

(2) (i) (ii) (iii) (iv)

(3) (iv) (iii) (i) (ii)

(4) (i) (iv) (ii) (iii)

2. For the following two statements of Assertion (A) and Reasoning (R), indicate the correct
code :

Assertion (A) : Ridge Lines in isoquat map set the limits for the positive productivities of
the respective inputs used in the production process.

Reasoning (R) : Isoquants will slope positively if the use of an input is increased beyond the
limit set by the ridge lines.

Code :

(1) Both (A) and (R) are correct and (R) is correct explanation of (A)

(2) Both (A) and (R) are correct but (R) is not correct explanation of (A)

(3) (A) is correct but (R) is not correct

(4) (A) is not correct but (R) is correct

N-01717 !N-01717-PAPER-III! 2 Paper-III

3. For perfect competition, indicate the correct code for essential conditions from the
following :
(a) Large number of buyers and sellers
(b) Perfect knowledge of the market
(c) Homogeneous product for sale
(d) Absence of transportation cost
(e) Freedom of entry and exit of buyers and sellers from the market
(f) Rational Behaviour of buyers and sellers
Code :
(1) (a), (b), (c), (d) and (f)
(2) (b), (c), (d), (e) and (f)
(3) (a), (b), (c), (d), (e) and (f)
(4) (a), (c), (d), (e) and (f)

4. Match the items of the List - I with those of List - II and suggest the correct code from the
following :
List - I List - II
(a) GDP (i) National income
(b) GDP at factor cost (ii) NDP plus Net flow of income from abroad
(c) NNP at factor cost (iii) Money value of final goods and services produced
(d) NNP (iv) Total gross value added by all enterprises in the economy
Code :
(a) (b) (c) (d)
(1) (i) (iii) (ii) (iv)
(2) (iii) (iv) (i) (ii)
(3) (iv) (iii) (ii) (i)
(4) (ii) (i) (iv) (iii)

5. When an individual is motivated to approach two or more positive but mutually exclusive
goals, he is facing which one type of the following conflicts ?
(1) Approach - Approach Conflict (2) Approach - Avoidance Conflict
(3) Avoidance - Avoidance Conflict (4) Person -Role Conflict

N-01717 !N-01717-PAPER-III! 4 Paper-III

6. ‘Contact Hypothesis’ is based on the belief that :
(1) the more we interact with someone, the less prejudiced or perceptually biased we will
be against that person
(2) familiarity breeds contempt
(3) contact among group members leads to conflict
(4) mutual discussion leads to reframing of problems

7. According to Vroom’s theory of motivation, which one of the following is correct ?

(1) Valence = Force × Expectancy (2) Expectancy = Force × Valence
(3) Valence= Motivation × Force (4) Force = Valence × Expectancy

8. The process by which sensory information is actively organised and interpreted by brain, is
called :
(1) Attitude (2) Learning (3) Perception (4) Training

9. An interview, in which the applicant is interviewed sequentially by several persons and each
rates the applicant on a standard form, is called :
(1) Unstructured Sequential Interview
(2) Structured Sequential Interview
(3) Job - related Interview
(4) Mass Interview

10. Which of the following are tripartite bodies ?

(a) Indian Labour Conference
(b) Standing Labour Committee
(c) State Level Advisory Boards
Code :
(1) Both (a) and (b)
(2) Both (a) and (c)
(3) Both (b) and (c)
(4) (a), (b) and (c)

N-01717 !N-01717-PAPER-III! 6 Paper-III

11. Which one of the following theories of labour welfare believes that workers are becoming
more and more aware of their rights and welfare measures can appease them ?
(1) Philanthropic theory
(2) Placating theory
(3) Public Relations theory
(4) Functional theory

12. Which one of the following is not a characteristic of the ‘Hot - Stove Rule’ of disciplinary
action ?
(1) Discipline is directed against the act and not against anybody else.
(2) Rules and regulations fore-warn regarding consequences of indiscipline.
(3) Consistency of disciplinary action is certain.
(4) Discipline is personal.

13. Which combination of the following statements about the net present value method of the
investment project appraisal is correct ?
(a) It considers all the cash flows from the project
(b) It gives more weightage to distant flows than near-term flows
(c) It considers the time value of money
Code :
(1) (a) and (b) only
(2) (b) and (c) only
(3) (a) and (c) only
(4) (a), (b) and (c) all

14. Capital structure of a business unit consists of :

(1) Equity and preference share capital
(2) Equity, long-term debt and short-term loan
(3) Equity capital and debt capital
(4) Equity, preference and debt capital

N-01717 !N-01717-PAPER-III! 8 Paper-III

 I
15. In the formula k d = used for computation of the cost of debt capital, B0 denotes as which
B0
one of the following ?
(1) Net cash inflow at the time of issue
(2) Market price of debenture
(3) Face value of debenture
(4) Probable net cash inflow to debenture holder on sale of the debenture in near future

16. In computation of the weighted average cost of capital, weights are assigned as per :
(1) Proportion of fixed and current assets
(2) Proportion of different sources of finance
(3) Proportion of long-term and short term debts
(4) Proportion of the various components of equity in the business

17. “The customer wants an inexpensive car”. This is an example of which one of the following
type of needs ?
(1) Stated needs
(2) Real needs
(3) Unstated needs
(4) Secret needs

18. Assertion (A) : Marketers are increasingly asked to justify their investments in financial
and profitability terms and rarely in terms of building the brand and
customer base.
Reasoning (R) : Organizations recognize that little of their market value comes from intangible
assets.
Code :
(1) Both (A) and (R) are correct.
(2) Both (A) and (R) are incorrect.
(3) (A) is correct and (R) is the right explanation of (A).
(4) (A) is correct but (R) is not the right explanation of (A).

N-01717 !N-01717-PAPER-III! 10 Paper-III

19. Which one of the following is a false statement ?
(1) The most attractive market segment is one in which entry barriers are low and exit
barriers are high.
(2) A market segment is unattractive when there are actual or potential substitutes for the
product.
(3) A market segment is unattractive if buyers possess strong or growing bargaining power.
(4) A segment is unattractive if the company’s suppliers are concentrated or organized.

20. Match the items of List - I with that of List - II and suggest the correct code :
List - I List - II
(Pricing Strategies) (Explanations)
(a) Customary pricing (i) Ending a price with 99 paise
(b) Skimming (ii) pricing a product based on perceived expectations
of customers
(c) Penetration pricing (iii) Setting a high price which gradually reduces as
competitors enter the market
(d) Psychological pricing (iv) Offering at a low price for a new product during its
initial offering
Code :
(a) (b) (c) (d)
(1) (i) (iii) (iv) (ii)
(2) (ii) (iii) (iv) (i)
(3) (iv) (ii) (iii) (i)
(4) (i) (ii) (iii) (iv)

21. Which one of the following OR Models is appropriate for project planning and scheduling
operations ?
(1) Games Models (2) Inventory Models
(3) Network Models (4) Queuing Models

22. While obtaining the optimal solution to the linear programming problem, by using graphical
method, which one of the following is contradictory to the essential requirements ?
(1) Collection of all feasible solutions entails the use of a convex set
(2) There are infinite number of basic feasible solutions within the solution space
(3) In the convex set of the feasible solutions, atleast one of the extreme points gives an
optimal solution
(4) The value of the objective function will be the same for all convex combinations of the
extreme points if such points are more than one in the feasible solution space

N-01717 !N-01717-PAPER-III! 12 Paper-III

23. For calculating Economic Order Quantity (EOQ), you are given the following formula :

2 DCO
EOQ =
Ch
When Let D=Demand
R=Rate of replenishment
L=Lead time
Cp=Unit purchase price
Ch=Unit holding cost
Co=Unit ordering cost
Cs=Shortage cost
Q=Quantity to be ordered
This inventory model is suitable for which one of the following situations ?
(1) Economic Order Quantity Model with uniform demand
(2) Economic Order Quantity Model with variable demand
(3) Economic Order Quantity Model when shortages are permitted
(4) Economic Order Quantity Model with gradual replenishment

24. While using Markov Analysis, which one of the following assumptions is incompatible ?
(1) The system has an infinite set of possible outcomes
(2) Transition probabilities are constant over a given length of time
(3) The condition of the system in any given period depends on preceding period condition
(4) Changes in the system may occur only once during each period

25. Statement - I : A hypothesis test for comparing the variances of two independent populations
with the help of variances of two small samples is known as chi-square test.
Statement - II : To test the hypothesis that the population standard deviation has a specific
value on the basis of the values of sample standard deviation of small sized
sample, F-test is relevant.
Code :
(1) Both the statements are correct
(2) Both the statements are incorrect
(3) Statement - I is correct while Statement - II is incorrect
(4) Statement - I is incorrect while Statement - II is correct

N-01717 !N-01717-PAPER-III! 14 Paper-III

26. Statement - I : A sampling distribution of mean, prepared on the basis of small sized samples
from a population which is not normally distributed, is not normally
distributed.

Statement - II : To test the significance of the difference between means of two small sized
samples when the parameter values of the standard deviations are given,
Z-test can be applied.

Code :

(1) Both the statements are correct

(2) Both the statements are incorrect

(3) Statement - I is correct while Statement - II is incorrect

(4) Statement - I is incorrect while Statement - II is correct

27. Which one of the following is restricted non-probability based sampling method ?

(1) Stratified sampling

(2) Quota sampling

(3) Cluster sampling

(4) Systematic sampling

28. Statement - I : When a null hypothesis is true but as per the hypothesis- testing, it is rejected;
it is known as Type II error in hypothesis-testing.

Statement - II : For testing the significance of the differences among the performance of
more than two sample groups when the data are non-parametric,
Kruskal-Wallis (H) test is appropriate.

Code :

(1) Both the statements are correct

(2) Both the statements are incorrect

(3) Statement - I is correct while Statement - II is incorrect

(4) Statement - I is incorrect while Statement - II is correct

N-01717 !N-01717-PAPER-III! 16 Paper-III

29. Match the items of List - I with those of List - II and choose the correct code :
List - I List - II
(a) Greenfield Investments (i) Unique product or services sold in domestic market
targeting international markets through its customers
(b) Turnkey Projects (ii) Typical North-American-process for rapid market
expansion
(c) Piggy Backing (iii) It is the most costly investments and holds the highest
risk
(d) Franchising (iv) A project where the facility is built from the ground
and turned over to the client ready to go
Code :
(a) (b) (c) (d)
(1) (iii) (iv) (i) (ii)
(2) (iii) (iv) (ii) (i)
(3) (iii) (ii) (i) (iv)
(4) (iv) (iii) (ii) (i)

30. Which of the following statements is not correct about strategic management ?
(1) It involves formulation and implementations of minor goals
(2) It involves initiatives taken by the top management
(3) It is based on consideration of resources
(4) It includes assessment of internal and external environment of organization

31. Which one among the following is not a correct statement ?

(1) ANZ Grindlays merged with American Express Bank to emerge competatively
(2) Apple computers uses differentiation competitive strategy to emphasize innovative
product
(3) Operating strategies are implemented at departmental level
(4) Corporate strategy describes a company’s overall direction towards growth by managing
business and product line

32. Statement - I : Trade Policy Review Body is a forum for the entire membership to review
the trade policies of all WTO members.
Statement - II : The WTO administers the “Trade Review Mechanism”.
Code :
(1) Statement I is correct but II is incorrect
(2) Statement II is correct but I is incorrect
(3) Both the statements I and II are correct
(4) Both the statements I and II are incorrect

N-01717 !N-01717-PAPER-III! 18 Paper-III

33. In order to make special allocation of fiscal resources to MSMEs, which one of the following
proposals was introduced in the budget of 2015-16 ?
(1) Micro Units Development Refinance Agency (MUDRA) Bank.
(2) MSME Bank
(3) Swachchha Bharat Abhiyan Vikas Kosh
(4) Self-Employment and Talent Utilisation (SETU) Bank

34. The support for Entrepreneurial and Managerial Development of Small and Medium
Enterprises (incubator) scheme of the National Manufacturing Competitiveness Programme
(NMCP) aims to which one of the following ?
(1) To provide Startup financial support to new ventures.
(2) To provide financial support to existing MSMEs.
(3) To provide supporting and nourishing business based new ideas in knowledge
institutions.
(4) To build awareness on intellectual property rights for the MSMEs

35. The relationship between subsidy and incentive can appropriately be brought out by which
one of the following propositions ?
(1) Incentives are concessions, bounties offered to borrow money to set up a production
activity, while subsidy is a non cash concession given to translate idea into productive
action
(2) Incentives and subsidies are cash disbursement only to the intrapreneur
(3) Incentives and subsidies are non-cash motivating factor to promote a new enterprise
(4) Incentives are financial as well as non financial stimuli encouraging to undertake
productive activities ; while subsidy pertains to a single lumpsum payment given by
the government to an entrepreneur for compensating him for the excess cost over
administered price of a product or service

36. Industrial parks fall under which one of the following categories ?
(1) General industrial clusters
(2) Specialised industrial clusters
(3) Conglomeration of heterogenous group of enterprises under one umbrella
(4) Integrated comprehensive business centres

N-01717 !N-01717-PAPER-III! 20 Paper-III

37. Which one among the following countries does not favour gender equality ?
(1) Sweden (2) USA (3) Denmark (4) Saudi Arabia

38. Assertion (A) : Bad corporate governance can cast doubt on a company’s reliability.
Reasoning (R) : Companies that do not cooperate sufficiently with auditors can publish
non-compliant financial results.
Code :
(1) Both (A) and (R) are correct and (R) is the right explanation of (A).
(2) Both (A) and (R) are correct but (R) is not the right explanation of (A).
(3) (A) is correct but (R) is incorrect.
(4) (R) is correct but (A) is incorrect.

39. Which one among the following is not a part of Corporate Social Initiatives ?
(1) Socially-responsible business practices
(2) Corporate social marketing
(3) Cause-related marketing
(4) Corporate ambience building

40. Which among the following are also called Corporate Social Responsibility ?
(a) Corporate Conscience
(b) Corporate Citizenship
(c) Responsible Business
Code :
(1) (a) and (b)
(2) (a), (b) and (c)
(3) (a) and (c)
(4) (b) and (c)

41. Which one of the following consists of both vertical sequence of jobs and a series of horizontal
opportunities ?
(1) Network Career Path (2) Cafeteria Career Path
(3) Transitory Career Path (4) Spiral Career Path

N-01717 !N-01717-PAPER-III! 22 Paper-III

42. Arrange the following steps of disciplinary actions in correct sequence.
(a) Complaint (b) Issue of charge sheet
(c) Preliminary fact finding (d) Consideration of explanation
(e) Suspension pending enquiry (f) Holding of enquiry
(g) Order of punishment (h) Appeal
Code :
(1) (a), (c), (b), (d), (e), (f), (g), (h)
(2) (a), (b), (c), (d), (e), (f), (g), (h)
(3) (a), (e), (b), (c), (d), (f), (g), (h)
(4) (a), (d), (b), (c), (e), (f), (g), (h)

43. Who among the following is known for application of Psychology to industry and
management ?
(1) Thomas Peters (2) Chester Barnard
(3) Mary Parker Follett (4) Hugo Munsterberg

44. The Right to strike is a __________.

(1) Fundamental right
(2) Legal right
(3) Right under directive principles of state policy
(4) Social right of employee

45. Which one of the following is not an unfair labour practice ?

(1) Use of force to prevent a worker from attending work
(2) Staging demonstration at residence of managerial staff members
(3) Damaging property of employer
(4) Going on unauthorised leave

46. Who was the founder of Madras Labour Union ?

(1) N.M. Joshi (2) N.M . Lokhande
(3) B.P. Wadia (4) V.V. Giri

N-01717 !N-01717-PAPER-III! 24 Paper-III

47. Who said that wages always tend to be equivalent to subsistence level ?
(1) Keynes (2) Ricardo (3) Walker (4) Pigou

48. ‘Kanban’ refers to which one of the following ?

(1) Employing sufficient manpower
(2) An ideal state in which production quantities are equal to delivery quantities
(3) Promotion of right people
(4) Both (1) and (3)

49. Which one of the following represents a system where by an employer regularly deducts a
portion of employee’s wage to pay subscription fee of trade union ?
(1) Checkout (2) Checkin (3) Settlement (4) Checkoff

50. According to Five-Stage Model of the Consumer Buying Process, which one of the following
sequence is followed ?
(1) Purchase Decision → Problem Recognition → Information Search → Post Purchase
Behaviour → Evaluation of Alternatives
(2) Evaluation of Alternatives → Purchase Decision → Information Search → Post Purchase
Behaviour → Problem Recognition
(3) Information Search → Evaluation of Alternatives → Purchase Decision → Problem
Recognition → Post Purchase Behaviour
(4) Problem Recognition → Information Search → Evaluation of Alternatives → Purchase
Decision → Post Purchase Behaviour

51. Match the items of List - I with the items of List - II and select the correct code of matching :
List - I List - II
(E - Commerce Companies) (Product Categories)
(a) Voylla Retail (i) Kids and baby products
(b) Limeroad (ii) Imitation Jewellery
(c) First cry.com (iii) Furniture and home decor
(d) Pepperfry (iv) Fashion and life style
Code :
(a) (b) (c) (d)
(1) (i) (iii) (ii) (iv)
(2) (iii) (iv) (i) (ii)
(3) (ii) (iv) (i) (iii)
(4) (ii) (i) (iv) (iii)

N-01717 !N-01717-PAPER-III! 26 Paper-III

52. Which one of the following refers to the use of online and offline promotion techniques to
increase the audience of a site ?
(1) Search-engine optimization
(2) Traffic building campaign
(3) Search-engine marketing
(4) Quality score

53. Match the items of List - I with the items of List - II and select the correct code of matching :
List - I List - II
(Type of store Retailers) (Formats)
(a) Speciality store (i) Broad selection of high-mark up, fast moving, brand-
name goods sold by a list
(b) Drug store (ii) Narrow product line
(c) Super store (iii) Prescription and pharmacies
(d) Catalogue showroom (iv) Huge selling space
Code :
(a) (b) (c) (d)
(1) (iv) (iii) (i) (ii)
(2) (ii) (i) (iv) (iii)
(3) (iii) (ii) (iv) (i)
(4) (ii) (iii) (iv) (i)

54. On which one of the following, the corporate advertising concentrates ?

(1) Brand Personality (2) Product Personality
(3) Organizational Personality (4) Recruitment

55. Which one of the following represents Polycentric orientation of the management ?
(1) Each host country is unique
(2) Home country is superior
(3) Sees similarities and differences in markets and countries
(4) Sees similarities and differences in a world region

N-01717 !N-01717-PAPER-III! 28 Paper-III

56. Which one of the following refers to “attributes or benefits that consumers strongly associate
with a brand, positively evaluate, and believe they could not find to the same extent with a
competitive brand” ?
(1) Points-of-attributes (2) Points-of-difference
(3) Points-of-parity (4) Points-of-purchase

57. Match the items of List - I with the items of List - II and select the correct code of
matching :
List - I List - II
(Advertising Agencies) (Clients)
(a) Ogilvy and Mather Ltd (i) HDFC
(b) JWT Hindustan Thompson Associates (ii) Coca-Cola
(c) Mudra Communications (iii) Vodafone
(d) McCann- Erikson India Ltd (iv) Nestle
Code :
(a) (b) (c) (d)
(1) (ii) (i) (iii) (iv)
(2) (iii) (i) (ii) (iv)
(3) (iv) (iii) (i) (ii)
(4) (iii) (iv) (i) (ii)

58. For the following two statements indicate the correct code :
Statement - I : Advertising is any paid form of personal presentation and promotion of
ideas, goods, or services by an identified sponsor.
Statement - II : Sales promotion consists of most long-term incentive tools, designed to
stimulate greater purchase of particular products or services by consumers
or the trade.
Code :
(1) Both the statements are correct
(2) Both the statements are incorrect
(3) Statement I is correct but statement II is incorrect
(4) Statement II is correct but Statement I is incorrect

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59. Vertical merger is the merger of two firms which are involved in which one of the following
forms ?
(1) Similar line of business
(2) Different stages of distribution and production in same business activity
(3) Different and unrelated business activities
(4) Partly similar line of business and partly in different unrelated business activities

60. The cost arising out of the failure of the customers to meet their obligations when payment
on credit sales become due after the expiry of the credit period, may be attributed to which
one of the following ?
(1) Collection Cost (2) Default Cost
(3) Delinquency Cost (4) Attrition Costs

61. In derivative contract, settlement by offset, denotes which one of the following ?
(1) Settlement of a maturing futures contract by cash payment in order to offset the mutual
obligation on the contract
(2) Closing out a futures contract before maturity with an offsetting trade
(3) Terminating a futures contract by executing a new contract by way of payment of
cash in a mutually agreed proportion
(4) A fresh contract is entered into by discarding the earlier contract outside the exchange

62. Purchasing power parity theory signifies which one of the following ?
(1) Ability to exchange one currency for another at a given conversion rate and in terms of
the usability of a currency for foreign transactions
(2) Which states that exchange rates between currencies are in equilibrium when their
purchasing power is the same in each of the two countries
(3) When one party of an economic transaction has equal degree of information in currency
market about it and shared equally to arrive at uniform foreign exchange selection
decision
(4) No one party can significantly influence foreign exchange rate in the market and all
will be guided by asymmetric information

63. When a direct quote of the home currency or any other currency is not available in the forex
market, it is computed with the help of exchange quotes of other pairs of currencies, is referred
to by which one of the following ?
(1) Cross rate (2) Arbitrage rate (3) Transaction rate (4) Translation rate

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64. In a derivative transaction, the term margin denotes to which one of the following ?
(1) Cash or collateral provided by a customer to a broker to protect the broker from loss on
a contract
(2) Cash or collateral provided by a broker to a customer to protect the customer from loss
on contract
(3) A broker’s request for more collateral to bring a customer’s margin requirement to a
premium margin level
(4) A customer’s request for more collateral to bring a broker’s margin requirement to a
minimum standard level

65. In the area of corporate risk management, systematic risk fulfils which one of the following
conditions ?
(1) Systematic risk is unavoidable; this is the contribution of an individual asset to the risk
of market portfolio.
(2) Systematic risk is avoidable by an investor, and it can be eliminated by diversification.
(3) The level of systematic risk in an asset cannot be measured by the beta coefficient.
(4) The expected return-beta relationship is referred to as Systematic Market Line (SML).

66. The difference between a forward trade and a derivative may be attributed to which one of
the following ?
(1) The position of owning a good that one plans to sell in the future, the position of
expecting to purchase the good in the future
(2) The parties agree to trade at a specified time in the future, at a price set now; a derivative
involves only payments of money, with no delivery of any commodity or assets
(3) The parties agree to trade at a future time, at a price to be decided in future ; a derivative
involves payments at a future specified time along with physical delivery of any
commodity or asset
(4) The parties agree to trade and the amounts to be paid or received will not depend on
the value at that time

67. Multilateral Investment Guarantee Agency (MIGA), an affiliate of World Bank, aims to address
which one of the following ?
(1) To promote comparative advantage among the trading nations to foster international
trade
(2) To promote a platform for dispute settlement mechanism in world trade guarantee
(3) To encourage foreign direct investment in developing countries by protecting investors
from non-commercial risk
(4) To promote international trade in goods and intelligence services

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68. Under foreign exchange risk measurement, economic risk emerges out of which of the
following ?
(a) Riskiness of company’s foreign exchange positions resulting from its business activities.
(b) The holding period or length of time over which the foreign exchange position is planned
to be held.
(c) A change in the present value of the future after tax cash flows due to changes in
exchange rates.
(d) The unit of currency to be used for the denomination of the value of currency.
Code :
(1) (a) only (2) Both (a) and (b) (3) (c) only (4) (d) only

69. Regional trading block agreement among USA, Canada and Mexico is formed and named
by which one of the following ?
(1) North American Free Trade Region
(2) North American Free Trade Agreement
(3) North and Central American Free Trade Agreement
(4) North American Free and Tariff Trade Agreement

70. If a bank in India, SBI, has an account with citibank, Newyork, and another Indian Bank,
Allahabad Bank, wants to refer to that account while corresponding with citibank, Newyork,
the Allahabad Bank would refer to which one of the following accounts ?
(1) Loro account (2) Mirror account
(3) Vostro account (4) Mix of Nostro and Vostro account

71. Treaties of Rome (1957) was responsible for creation of which one of the following ?
(1) European Economic Community (EEC)
(2) General Agreement on Tariffs and Trade (GATT)
(3) WTO
(4) General Agreement on Trade in Services (GATS)

72. Agreement on Trade Related Investment Measures (TRIMS) under WTO regime aims to
address which one of the following measures ?
(1) Protection of investment in creation of Intellectual Property Rights (IPRs)
(2) No member shall apply any measures in violation of the national treatment principles
of GATT and discriminate against foreigners or foreign products
(3) It does not prohibit investment measures that place a restriction on quantities and
measures requiring a certain percentage of local procurement
(4) It encourages measures which limit imports or set targets for exports and trade balancing
requirements

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73. In international marketing, export documentation framework engulfs which one of the
following ?
(1) Export census documents compiled by the department of commerce
(2) Shipper’s Export Declarations (SEDs)
(3) Foreign commercial service including websites of individual countries
(4) All of the above

74. In dispute resolution mechanism of the WTO regime, the collapse of the Doha Round talks at
Cancun in September 2003 has been attributed to which one of the following ?
(1) Subsidies in agriculture and agricultural domestic support policies of developed nations
(2) Measures on protecting intellectual property rights of innovators
(3) Agreement on Textiles and Clothing (ATC) under Multi-Fibre Arrangement
(4) Trade in the shape of individuals travelling to foreign countries to supply services

75. In international financial environment for settlement of debts there is a practice known as
netting practice. The netting practice pertains to which one of the following ?
(1) A practice by which subsidiaries of affiliates within the TNC network settle
inter-subsidiary debts for the net amount owed during the post-transaction period.
(2) A practice involving the sale of export accounts receivable to a third party within the
TNC network.
(3) A practice of purchasing an account receivable where the credit term exceeds the
permissible limit within the TNC network.
(4) Where the difference between international transaction of gross capital account
receivables and payables are settled against current account receivables and payables.

-o0o-

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