MCQ Mba First Year

Prof.
Rohan Dahivale
MBA First Year: Important MCQs

(All Subjects)
Rajgad Institute of
Management Research &
Development
INDEX
SN Code Subject Name
1 101 Accounting for Business
Decisions
2 102 Economic Analysis for
Business Decisions
3 103 Legal Aspects of Business
4 104 Business Research Methods
5 105 Organizational Behavior
6 106 Basics of Marketing
Prof. Rohan Dahivale

101 Accounting for Business Decisions
1. Which of the following jobs check accounting in ledgers and financial

statements?
 Financial
 Audit
 Management
 Budget Analysis
2. The process of accounting is needed to

I. take a holiday
II. assist in decision making
III. invest in start up of a business
IV. track money spent
 I, II and III
 I, II and IV
 I, III and IV
 II, III and IV
3. Which of the following describes the practical framework of bookkeeping?
 Classifying, recording and summarizing

 Reporting, analyzing and interpreting
 Classifying, analyzing and interpreting
 Recording, summarizing and reporting
4. Which of the following principles assumes that a business will continue for a
long time?
 Historical cost
 Periodicity
 Objectivity
 Going concern

5. Which of the following users assesses the attractiveness of investing in a
business?
 Tax authorities
 Financial analysts
 Bank
 Employees
6. Accountants use generally Accepted Accounting Principles (GAAP) to make

the financial information communicated
I. Relevant
II. Reliable
III. Comparable
IV Profitable
 I, II and III
 I, II and IV
 I, III and IV
 II, III and IV
7. One of the detailed rules used to record business transaction is
 Objectivity
 Accruals
 Double entry book keeping
 Going Concern
8. The diagram below refers to item 8.

Numbers 4 and 8 in the diagram represents
(A) Prepare a cheque and extract a Trial balance
(B) Extract a trial balance and prepare final reports
(C) Prepare final reports and prepare a cheque
(D) Extract a trial balance and prepare a voucher

9. Which of the following highlights the correct order of the stages in the
accounting cycle?
 Journalizing, final accounts, posting to the ledger and trial balance

 Journalizing, posting to the ledger, trial balance and final accounts
 Posting to the ledger, trial balance, final accounts and journalizing
 Posting to the ledger, journalizing, final accounts and trial balance
10. Dividends are paid by

I. Sole trading businesses
II. Partnership companies
III. Limited Liability companies
IV. Co-operatives
 I and II
 I and III
 II and III
 III and IV
11. Which of the following companies has to pay corporation tax?
 Co-operative society
 Limited liability Company
 Partnership Company
 Sole trading company
12. Which of the following companies has unlimited liability?
 Sole trading company

 Co-operative society
 Limited liability Company
 Partnership Company
13. The Trading and Profit and Loss account is also called
 Balance Sheet
 Cash Flow Statement
 Income Statement
 Trial Balance

14. The elements of the accounting equation are
I. Assets
II. Liabilities
III. Trial Balance
IV. Capital
 I, II and III
 I, II and IV
 I, III and IV
 II, III and IV
15. Which of the following are assets?

I. Cash and cash at bank
II. Land and fixtures
III. Loans and creditors
IV. Mortgage loans and debtors
 I and II
 I and III
 I and IV
 II and III
16. Which of the following concepts use the rules ‘every transaction affects two
or more ledger accounts?
 Going concern
 Double entry book-keeping
 Money measurement
 Periodicity
17. The purchase of a motor car on credit from Toy Automotive Company for use
in a firm should be recorded as
 Dr. Maintenance of vehicle expense, Cr. Toy Automotive Company

 Dr. Purchases, Cr. Toy Automotive Company
 Dr. Motor vehicle, Cr. Toy Automotive Company
 Dr. Motor vehicle, Cr. Cash

18. Item 5 refers to the following information
Cash Capital Rs.40 000 Drawings Rs.10 000
Sales 15 000 Purchases 20 000
Balance c/d ???
Which of the following figures represents the balance c/d for the above account?
 Rs.10 000
 Rs.25 000
 Rs.30 000
 Rs.55 000
19. Which of the following financial statements reflects the overall financial
position of the business?
 Statement of cash flows

 Income Statement
 Balance Sheet
 Statement of owner’s equity
20. Expense is recorded in the accounting records when:
 Cash is paid
 The purchase order is placed with the supplier
 Purchases are made
 None of these
21. Double entry book-keeping was fathered by:
 F.W.Taylor
 Henry Fayol
 Lucas Pacioli.
 Peter Druker

22. The portion of a corporation’s earnings that are reinvested in the corporation
rather than returned to stockholders is called:
 Dividend
 Stockholders Equity
 Liabilities
 Retained Income
23. The balance sheet equation is best represented by:
 Assets = Liabilities +Owners Equity

 Assets = Capital
 Liabilities = Assets + Owners Equity
 Capital = Assets + Liabilities
24. The accounting information specially prepared to aid managers is called …

Management Accounting Information.
 Cost Accounting
 Management Accounting
 Financial Accounting
 Human Resource Accounting
25. Cost Accounting ….. provides data both for financial accounting and
management accounting.
 Cost Accounting
26. Journal is called as book of ……….. entry.
 Secondary Entry
 Prime Entry
 Ledger
 Accounting

27. Historical costs are used in …Financial Accounting.
 Cost Accounting
28. GAAP stands for ……..
 General Accounting and Audit Principles

 Generally Accepted Audit Policies
 Generally Accrued Accounting Principles
 Generally Accepted Accounting Principles

29. IFRS stands for …..
 International Financial Reporting Standards

 Indian Financial Reporting Standards
 International Financial Restructuring Standards
 International Fund Reporting Standards
30. Match the following

a. Personal Accounts is Debited 1. For Expenses
b. Real Accounts is Debited 2. When a person is Receiver
c. Nominal Accounts is Debited 3. When a person is Giver
d. Personal Accounts is Credited 4. When there is a Gain
e. Real Accounts is Credited 5. For what is Received
f. Nominal Accounts is Credited 6. When something is going out
 a-1,b-2,c-3,d-4,e-5,f-6
 a-2,b-6,c-4,d-1,e-5,f-3
 a-2,b-5,c-1,d-3,e-6,f-4
 a-3,b-2,c-6,d-4,e-5,f-1

31. Accounting Equation is based upon ……………….. Concept.
 Dual Aspect Concept

 Materiality Concept
 Prudence Concept
 Full Disclosure Concept

32. Drawings are deducted from
 Sales
 Purchases
 Capital
 Assets
33. Which of the following is not an external user of accounting information
 Banker
 Taxation authorities
 Manager
 Shareholders
34. A company has spent Rs. 2000 on painting the factory building. It should be
treated as
 Capital expenditure
 Revenue expenditure
 Deferred revenue expenditure
 Accrued expenditure
35.Which of the following is an accounting equation
 Capital = Asset + Liability

 Capital = Liability - Assets
 Asset = Liability – Capital
 Asset = Liability + Capital

36. A company is guided by ?
 Companies Act 1931


37. Who is owners of company……..
 Share holders
 Promoter
 Director
 Partner
38. Q.5 Interest on capital will be paid to the partners , if provided for in the
organization , but only from---
 Reserves
 Profits
 Goodwill
 Accumulated profit.
39. Q.6 Book keeping is concerned with ---
 Recording of financial transactions

 Classification of financial transactions
 Summarization of financial transactions
 Both a) & b)
40. Accounting is concerned with
 Monetary Transactions
 Non-Monetary Transactions
 Monetary and Non-Monetary Transactions
 Illegal Transactions

41. Which of the following is fundamental Accounting Assumption?
 Going Concern
 Materiality
 Prudence
 Business Entity
42. Accounting Standards are—
 Basis for selection of accounting policy

 Set of broad accounting policies to be followed by an entity
 Basis for establishing and managing an entity
 Basis for non business activities
43. Consider the following Trial Balance-

Purchases Rs.30000
Purchase Return Rs.5000
Sales Rs.40000
Sales Return Rs.5000
The amount of profit will be—
 Rs.10000
 Rs.5000
 Rs.7500
 Rs. 8000
44. Unexpired Insurance given in the Trial Balance is recorded in
 Trading account
 Profit and loss account
 Balance Sheet
 Profit and loss appropriation account

45. The capital of all the partners should always be in the ----- ratio
 Profit sharing
 Time devoted
 Equal
 None
46. Financial accounting provides financial information to all of the following

external users except:
 Government Agencies
 Investors
 Manager
 Supplier
47. Liabilities are which of the following?
 Resources
 Obligations
 Future benefits
 Expenses
48. If Assets = Rs. 1 99,500 and Owner's equity = Rs. 99,500 then Liabilities = ?
 Rs. 298,000
 Rs. 100,000
 Rs. 99,500
 Rs. 115000
49. In case of Partnership business, liabilities of partners are:
 limited
 unlimited
 limited to the business capital
 limited to debt

50. Double entry book-keeping was fathered by:
 F.W.Taylor
 Luca Pacioli
 Henry Fayol
 Peter Drucker
51. Management Accounting provide services to management performing----
 All management functions

 Controlling function
 Interpret the financial data
 Planning
52. During life time of an entity, accountant produce financial statement at

particular points in time in accordance with which principle.
 Matching
 Periodicity
 Conservatism
 Accrual
53. Which of the following is not a conventions of financial accounting?
 Consistency
 Materiality
 Full disclosure
 Conservatism
54. Cost accounting is different from financial accounting in respect of:
 Inventory valuation
 Ascertainment of cost
 Recording of cost
 Reporting of cost

55. Planning & forecasting is the function of…
 Financial accounting
 Book-keeping
 Cost accounting
 Management accounting
56. Management accounting and cost accounting are ----
 Supplementary to each other

 Complementary to each other
 Independent to each other
 Opposite to each other
57. The technique and process of ascertaining the cost is termed as
 Costing
 Cost Accounting
 Cost Accountancy
58. A company has spent Rs. 2000 on painting the factory building. It should be
treated as
 Capital expenditure
 Revenue expenditure
 Deferred revenue expenditure
 Revenue Income
59. Debit may signify
 Increase asset account

 Decrease in asset account
 Increase in a liability account
 Increase in capital account

61. Which of the following is not an example of fixed asset.
 Plant & Machinery

 Land & Building
 Royalty
 Patent
62. Which of the Following are examples of Personal accounts ---
 Machinery
 Wages
 Debtors
 Depreciation
63. Which of the following is not financial statement
 Profit and loss account

 Profit and loss appropriation account
 Balance sheet
 Trial Balance
64. Trial balance ….
 Reflects the true financial position of the firm

 Is accepted by the court as documentary evidence
 Is prepared annually or half yearly
 List of debit and credit balances.
65. Which of the following best describes the meaning of ‘Purchases’?
 Items sold
 Order given
 Machinery purchased
 Goods paid for

66. An Accounts has sides called -------------
 Journal and Ledger

 Assets And Liabilities
 Revenue and Expenditure
 Debit and Credit
67. One of the criticisms of accounting information has been:
 the information is always incorrect.

 accountants never follow rules and regulations.
 inflation is not normally reflected within the financial statements.
 companies should report the future instead of the past.
68. Share capital is:
 the way in which capital is divided at the end of each year.

 the way in which partners decide to divide profits and losses.
 another name for London's stock exchange.
 the way in which the ownership of a limited company is divided.
69. Which of the following is not a component of a complete set of financial

statements?
 A statement of changes in equity

 A management commentary
 A set of notes
 A statement of cash flows
70. Items of financial information are material if:
 They are insignificant

 They could not influence the economic decisions made by the users of financial
statements
 They could influence the economic decisions made by the users of
financial statements
 They are aggregated with other items

71. Management accounting is said to meet:
 The external accounting needs of the organisation.

 The internal accounting needs of the organisation.
 The regulatory requirements of the organisation.
 The needs of laws that govern company financial reporting
72. Cost accounting differs from financial accounting in that financial accounting:
 Is mostly concerned with external financial reporting.

 Is mostly concerned with individual departments of the company.
 Provides the additional information required for special reports to
management.
 Puts more emphasis on future operations.
73. Cost Accounting is
 Accounting of product or service cost

 Monetary transactions of business
 Non Monetary Transactions of business
 For external users
74. Accounting is a ------------
 Language of Individual
 Language of Business
 Language of Science
 Language of Arts
75. Techniques of Cost Accounting Includes:
 Trial Balance
 Job Costing
 Marginal Costing
 Balance sheet

76. Historical Cost are used in which accounting?
 Cost Accounting
 Responsibility Accounting
 Tax Accounting
77. Which of the following is not a major function of Management Accounting
 Human Resource Management

 Cost Accounting
 Budgeting
 Internal Auditing
78. Gross Profit is
 Sales less Purchases

 Excess of sales over cost of goods sold
 Net profit less expenses of the period
 Cost of goods sold + opening stock
 Rs. 30300
79. The Balance sheet of company should be presented in accordance with ---
 Part I of Schedule V of companies act

 Part II of Schedule IV of companies act
 Part I of Schedule VI of companies act
 Part II of Schedule VI of companies act
80. What is the full form of SEBI
 Share exchange board of India

 Security exchange board of India
 Security encashment board of India
 Share earned board of India.

81. Interest on drawing is ____________ for the business.
 Expenditure
 Expense
 Gain
 No profit no loss
82. What is the other name of partnership deed?
 Articles of Partnership
 Partnership firm
 Partnership Report
 Partnership Data
83.Which of the following is a major accounting contribution to the

managerial decision-making process in evaluating possible courses of action?
 Determine who is responsible for the decision.

 Prepare internal reports that review the actual impact of a decision made.
 Calculate how much should be invested for each potential project.
 Select possible actions that management should consider.
84.What does cost accounting measure, record, and report?
 Product costs
 Future costs
 Manufacturing processes
 Managerial accounting decisions
85.Which one of the following is a major purpose of cost accounting?
 To provide gross profit rates to managers

 To allocate overhead costs to jobs
 To classify all costs as direct or indirect
 To measure, record, and report product costs
86. Which of the following statement is true?
 Managerial accounting information generally pertains to an entity as a

whole and is very detailed.
 Managerial accounting applies only to manufacturing companies.
 Management accounting is based on historical data.
 Management accounting is useful to external users.

87. Goodwill is -------
 A Tangible Assets
 A Current Assets
 An Intangible Assets
 Fictitious Assets
88. Balance sheet is also known as ____
 Cash flow statement

 Fund flow statement
 Analysis statement
 Position statement
89. Accounting is generally understood as ___

1. Summarization of business transactions
2. Language of the business
3. Source of business information
4. Means of communication
 1 Only
 1 and 2 Only
 2 and 3 Only
 1,2,3,and 4
9.0 Accounting standards in India are issued by
 Central Govt.
 State Govt.
 ICAI
 RBI
91. Partnership act commences in :
 1st October 1932

 1st July 1932
 1st January 1932
 1st March 1932

102 Economic Analysis for Business Decisions
1. The fundamental economic problem faced by all societies is:

a. unemployment
b. inequality
c. poverty
d. scarcity
2. "Capitalism" refers to:

a. the use of markets
b. government ownership of capital goods
c. private ownership of capital goods
d. private ownership of homes & cars
3. There are three fundamental questions every society must answer. Which of
the following is/are one of these questions?
a. What goods and services are to be produced?
b. How are the goods and services to be produced?
c. Who will get the goods and services that are produced?
d. All of the above
5. The bowed shape of the production possibilities curve illustrates:

a. the law of increasing marginal cost
b. that production is inefficient
c. that production is unattainable
d. the demand is relatively inelastic

6. You have taken this quiz and received a grade of 3 out of a possible 10 points
(F). You are allowed to take a second version of this quiz. If you score 7 or more,
you can raise your score to a 7 (C). You will need to study for the second version.
In making a rational decision as to whether or not to retake the test, you should
a. always retake the quiz
b. consider only the marginal benefits from of retaking the quiz (four extra points)
c. consider only the marginal opportunity costs from taking the quiz (the time spent
studying and taking the quiz)
d. consider both the marginal benefits and the marginal opportunity costs of
retaking the quiz
7. The law of demand states that:
a. as the quantity demanded rises, the price rises
b. as the price rises, the quantity demanded rises
c. as the price rises, the quantity demanded falls
d. as supply rises, the demand rises
8. The price elasticity of demand is the:

a. percentage change in quantity demanded divided by the percentage change in
price
b. percentage change in price divided by the percentage change in quantity demanded
c. dollar change in quantity demanded divided by the dollar change in price
d. percentage change in quantity demanded divided by the percentage change in
quantity supplied
9. Community Colleges desired to increase revenues. They decided to raise fees
paid by students with Bachelors degrees to $50 per unit because they believed
this would result in greater revenues. But in reality, total revenues fell. Therefore,
the demand for Community College courses by people with Bachelors degrees
must have actually been:
a. relatively inelastic
b. unit elastic
c. relatively elastic
d. perfectly elastic

10. The demand for a product would be more inelastic:
a. the greater is the time under consideration
b. the greater is the number of substitutes available to buyers
c. the less expensive is the product in relation to incomes
d. all of the above
11. In the case of agriculture,

a. the demand has shifted to the right more than the supply has shifted to the right
b. the demand has shifted to the right less than the supply has shifted to the right
c. the demand has shifted to the left more than the supply has shifted to the left
d. the demand has shifted to the left less than the supply has shifted to the left
12. The agricultural price support program is an example of

a. a price ceiling
b. a price floor
c. equilibrium pricing
d. None of above
13. If there is a price floor, there will be
a. shortages
b. surpluses
c. equilibrium
d. None of above
14. If there is a price ceiling, there will be
a. shortages
b. surpluses
c. equilibrium
d. None of above

15. If there is a price ceiling, which of the following is NOT likely to occur?
a. rationing by first-come, first-served
b. black markets
c. gray markets
d. sellers providing goods for free that were formerly not free
16. The goal of a pure market economy is to best meet the desires of
a. consumers
b. companies
c. workers
d. the government
17. In a pure market economy, which of the following is a function of the price?
I. provide information to sellers and buyers
II. provide incentives to sellers and buyers
a. I only
b. II only
c. both I and II
d. neither I nor II
18. In a market system, sellers act in ____________ interest , but this leads to
behaviors in ____________ interest.
a. self; self
b. self; society’s
c. society’s; society’s
d. society’s; self

19. The law of diminishing (marginal) returns states that as more of a variable
factor is added to a certain amount of a fixed factor, beyond some point:
a. Total physical product begins to fall
b. The marginal physical product rises
c. The marginal physical product falls
d. The average physical product falls
20. Why is the law of diminishing marginal returns true?

a. specialization and division of labor
b. spreading the average fixed cost
c. limited capital
d. all factors being variable in the long-run
21. Which of the following is a characteristic of pure monopoly?

a. one seller of the product
b. low barriers to entry
c. close substitute products
d. perfect information
22. In pure monopoly, what is the relation between the price and the marginal
revenue?
a. the price is greater than the marginal revenue
b. the price is less than the marginal revenue
c. there is no relation
d. they are equal

23. In order to maximize profits, a monopoly company will produce that quantity
at which the:
a. marginal revenue equals average total cost
b. price equals marginal revenue
c. marginal revenue equals marginal cost
d. total revenue equals total cost
24. Compared to the case of perfect competition, a monopolist is more likely to:
a. charge a higher price
b. produce a lower quantity of the product
c. make a greater amount of economic profit
d. all of the above
25. Which of the following is necessary for a natural monopoly?
a. economies of scale
b. a high proportion of the total cost is the cost of capital goods
c. the market is very small
d. all of the above
26. Which of the following best defines price discrimination?

a. charging different prices on the basis of race
b. charging different prices for goods with different costs of production
c. charging different prices based on cost-of-service differences
d. selling a certain product of given quality and cost per unit at different prices to
different buyers
27. In order to practice price discrimination, which of the following is needed?

a. some degree of monopoly power
b. an ability to separate the market
c. an ability to prevent reselling
d. all of the above

28. In price discrimination, which section of the market is charged the higher
price?
a. the section with the richest people
b. the section with the oldest people
c. the section with the most inelastic demand
d. the section with the most elastic demand
29. Which of the following concepts represents the extra revenue a firm receives
from the services of an additional unit of a factor of production?
a. total revenue
b. marginal physical product
c. marginal revenus product
d. marginal revenue
30. The demand for labor is the same as the

a. marginal revenue product
b. marginal physical product
c. marginal cost
d. wage
31. The demand for labor slopes down and to the right because of
a. the law of demand
b. the iron law of wages
c. the law of diminishing marginal returns
d. economies of scale

32. Skills that embodied in a person are called
a. Human capital
b. Embodied skills
c. Physical capital
d. Experience skills
33. “Treating an individual as typical of a group” is the definition of

a. pure discrimination
b. statistical discrimination
c. human capital
d. specific skills
34. If a 1% fall in the price of a product causes the quantity demanded of the
product to increase by 2%, demand is
 Inelastic.
 Unit-elastic.
 Elastic.
 Perfectly elastic.
35. Compared to the lower-right portion, the upper-left portion of most demand
curves tend to be
 More inelastic.
 More elastic.
 Unit-elastic.
 Perfectly inelastic.
36. If a business increased the price of its product from $7 to $8 when the
elasticity of demand was inelastic, then
 Total revenues decreased.

 Total revenues increased.
 Total revenues remained unchanged.
 Total revenues were perfectly inelastic.

37. You are the sales manager for a pizza company and have been informed that
the price elasticity of demand for your most popular pizza is greater than 1. To
increase total revenues, you should
 Increase the price of the pizza.

 Decrease the price of the pizza.
 Hold pizza prices constant.
 Decrease demand for your pizza.
38. Assume Amanda Herman finds that her total spending on compact discs
remains the same after the price of compact discs falls, other things equal. Which
of the following is true about Amanda’s demand for compact discs with this price
change?
 It is unit-price-elastic.
 It is perfectly price-elastic.
 It is perfectly price-inelastic.
 It increased in response to the price change.
39. Which is characteristic of a product whose demand is elastic?
 The price elasticity coefficient is less than 1.

 Total revenue decreases if price decreases.
 Buyers are relatively insensitive to price changes.
 The percentage change in quantity is greater than the percentage of
change in price.
40. The demand for Nike basketball shoes is more price-elastic than the demand
for basketball shoes as a whole. This is best explained by the fact that
 Nike basketball shoes are a luxury good, not a necessity.

 Nike basketballs shoes are the best made and are widely advertised.
 There are more complements for Nike basketball shoes than for basketball shoes
as a whole.
 There are more substitutes for Nike basketball shoes than for basketball
shoes as a whole.

41. Which is characteristic of a good whose demand is inelastic?
 There are a large number of good substitutes for the good for consumers.
 The buyer spends a small percentage of total income on the good.
 The good s regarded by consumers as a luxury.
 The period of time for which demand is given is relatively long.
42. From a time perspective, the demand for most products is
 Less elastic in the short run and unit-elastic in the long run.
 Less elastic in the long run and unit-elastic in the short run.
 More elastic in the short run than in the long run.
 More elastic in the long run than in the short run.
43. If a 5% fall in the price of a commodity causes quantity supplied to decrease

by 8% supply is
 Elastic.
 Inelastic.
 Unit-elastic.
 Perfectly inelastic.
44. If supply is inelastic and demand decreases, the total revenue of sellers will
 Increase.
 Decrease.
 Decrease only if demand is elastic.
 Increase only if demand is inelastic.
45. The chief determinant of the price elastic of supply of a product is
 The number of good substitutes the product has.

 The length of time sellers has to adjust to a change in price.
 Whether the product a luxury or necessity.
 Whether the product is a durable or a nondurable good.

46. A study shows that the coefficient of the cross elasticity of Coke and Sprite is
negative. This information indicates that Coke and Sprite are
 Normal goods.
 Complementary goods.
 Substitute goods.
 Independent goods.
47. If a 5% increase in the price of one good results in a decrease of 2% in the

quantity demanded of another good, then it can be concluded that the two goods
are
 Complements.
 Substitutes.
 Independent.
 Normal.
48. Most goods can be classified as normal goods rather than inferior goods. The
definition of a normal good means that
 The percentage change in consumer income is greater that the percentage

change in price of a normal good.
 The percentage change in quantity demanded of the normal good Is greater than
the percentage change in consumer income.
 As consumer income increases, consumer purchases of a normal
goodincrease.
 The income elasticity of demand is negative.
49. In below question chicken and waffles are considered complimentary goods
in the region of Rosco. There is an outbreak of the avian flu which kills a majority
of the chicken in the region of Rosco.
50. What will happen to supply and demand for chicken and waffles in Rosco?
 Supply of chicken will increase and quantity of waffles will increase

 Supply of chicken will increase and quantity of waffles will decrease
 Supply of chicken will decrease and quantity of waffles will increase
 Supply of chicken will decrease and quantity of waffles will decrease

51. What will happen to the price of chicken?
 Increase, because the demand for waffles will increase

 Decrease, because chicken are cheaper during influenzas
 Increase, because demand stayed the same while supply decreased
 No change
52. What will happen to the quantity supplied of waffles?
 Increase, because waffles are a substitute for chicken

 Decrease, because the supplied of chicken has decreased as well
 Increase, because more workers can make waffles now that supply of chicken is
decreased
 No change
In below question Baby Bottle Pops and Nerds Ropes are considered substitute
goods. Along with sugar and spice, Wonka candy producers accidentally include
chemical X as an ingredient in all their candy, depleting the supply of Nerds
Ropes.
53. What will happen to the demand for Baby Bottle Pops?
 Decrease, because people will buy less candy after hearing about Wonka
 Increase, because Nerds Ropes become more expensive with limited
supply
 Increase, because people will want to increase sugar consumption
 No Change
54. What will happen to the price of Nerds Ropes and quantity demanded of Baby
Bottle Pops?
 Price of Nerds Ropes will increase and quantity of Baby Bottle Pops will
increase
 Price of Nerds Ropes will increase and quantity of Baby Bottle Pops will
decrease
 Price of Nerds Ropes will decrease and quantity of Baby Bottle Pops will
increase
 Price of Nerds Ropes will decrease and quantity of Baby Bottle Pops will
decrease

55. The country Beta is experiencing an increase in unemployment. If steak is a
normal good:
 Demand for steak will increase

 Quantity demanded of steak will increase
 Demand for steak will decrease
 Quantity demanded of steak will decrease
56. Orange juice and mango juice are close substitutes. According to cross-
elasticity, if the price of mango juice increases by 12%, then the price/quantity
demanded of orange juice must also increase/decrease:
 Price, increase
 Price, decrease
 Quantity demanded, increase
 Quantity demanded, decrease
57. A private high school increases student tuition. This will increase total
revenue if the price elasticity of demand for private education is:
 Inelastic
 Unit-elastic
 Elastic
 Cross-elastic
Use the graph at right to answer questions 18-20.

58. At Y, what would cause the QS to shift from Q3 to Q4?
 Demand decreases, D1 to D
 Demand increases, D to D1
 Supply decreases, S to S1
 Supply increases, S1 to S
59. At X, what would cause price to decrease from P4 to P2?
 Supply increases, S1 to S
 Supply decreases, S to S1
 Demand increases, D to D1
 Demand decreases, D1 to D

60. What price and quantity demanded would result from a decrease in demand
from D1 to D when starting at X?
 P1, Q3
 P4, Q2
 P3, Q1
 P2, Q4
Use the following diagram to answer questions below 2.
61. Why is the supply curve upward sloping?
 As price increases, so do costs

 As price increases, consumers demand less
 As the price increases, suppliers can earn higher levels of profit or justify
higher marginal costs to produce more
 As the price increases, producers supply more of the good.
62. Which is an explanation for the downward slope of the demand curve?
 Substitution effect
 Elasticity
 Profit maximization
 Diminishing marginal utility
63. The set of six determinants of supply does not include:
 Changes in technology
 Changes in the size of the population
 Changes in resource costs
 Changes in the number of suppliers
64. Costs of production of jelly beans increase simultaneously with a decrease in

the price of M&Ms, a close substitute. This will cause:
 A decrease in the demand of jelly beans

 A decrease in the price of jelly beans
 An increase in the supply of M&Ms
 An increase in the demand of M&Ms

65. Income rises, and initially the demand for sweatshirts increases. As income
continues to rise, however, the demand for sweatshirts decreases. This tells us
that a sweatshirt is:
 A normal good at all income levels

 An inferior good at all income levels
 An inferior good at low income levels and a normal good at high income levels
 A normal good at low income levels and an inferior good at high income
levels
66. Which of the following is NOT a determinant of a product’s demand?
 Taxes and subsidies

 Changes in consumer preferences
 Expected future prices by consumers
 Changes in prices of substitute products
67. Average income of the American population decreases by 10%. The market
would see an increase in the demand for products sold at:
 Jewelry stores
 Boutiques
 Department stores
 Thrift stores
68. The price floor is set at $___ and the price ceiling is set at $___:
 10, 25
 80, 120
 25, 10
 60, 140
69. The quantity demanded when the government sets the price floor is:
 60
 80
 120
 140

70. When the price ceiling is enforced there is a shortage/surplus of 40/80:
 Shortage, 40
 Shortage, 80
 Surplus, 40
 Surplus, 80
71. Which of the following is NOT an inferior good?
 Fur coats
 Used cars
 Secondhand clothing
 Generic products
72. An increase in the demand for designer handbags would most likely result
from a(n):
 Increase in the costs of designer handbags

 Increase in the costs of production of designer handbags
 Increase in unemployment
 Increase in average income
73. The price of red wine increases by 7% and the quantity demanded decreases
by 13%. The elasticity coefficient of red wine is:
 Less than one, so it is elastic

 Less than one, so it is inelastic
 Greater than one, so it is elastic
 Greater than one, so it is inelastic
74. Which of the following would cause the entire market demand curve for
peanut butter to shift left?
 An increase in the costs of peanuts

 An increase in the price of peanut butter
 A decrease in the price of nutella, a close substitute
 An decrease in the price of jelly, a strong complement

75. Roy’s company produces both ping pong balls and tennis balls. The price of
ping pong balls decreases relative to the price of tennis balls. What will happen to
the supply of both types of balls?
 Supply of tennis balls increases, supply of ping pong balls increases

 Supply of tennis balls increases, supply of ping pong balls decreases
 Supply of tennis balls decreases, supply of ping pong balls decreases
 Supply of tennis balls decreases, supply of ping pong balls increases
76. Which of the following causes a good to be more elastic?
 Greater percentage of income

 Fewer substitutes
 Greater necessity
 Fewer suppliers of the good
77. The price of cashmere scarves increases by 4% but total revenue remains the
same. Price elasticity of cashmere scarves is:
 Inelastic
 Unit-elastic
 Elastic
 Equal to zero
78. The quantity demanded of shoelaces increases from 100 to 145 as price
decreases from $7 to $5. Comparison of total revenue before and after the price
change proves that:
 Elasticity of demand is equal to zero

 Elasticity of demand is equal to one
 Elasticity of demand is greater than one
 Elasticity of demand is less than one
79. Adam Smith's invisible hand principle stresses
 That compassion is a powerful motivator that encourages individuals to engage

in productive economic activity.
 The tendency of the competitive market process to direct self-interested
individuals into activities that enhance the economic welfare of society.

 The potential of government regulation as a means of bringing the self interest of
individuals into harmony with the economic welfare of society.
 The tendency of self-interested individuals to pursue activities that benefit
themselves, but harm the overall economic welfare of society.
80. In a free market economy, consumption and investment decisions
 Are controlled largely by the government.

 Shape the future course of the national economy.
 Are necessarily controlled by big businesses.
 Require protection from foreign forces if individuals desire wealth accumulation.
81. Most microeconomic models assume that decision makers wish to
 Make themselves as well off as possible.

 Act selfishly.
 Not cooperate with others.
 None of the above.
82. Which of the following is an example of a normative statement?
 A higher price for a good causes people to want to buy less of that good.
 A lower price for a good causes people to want to buy more of that good.
 To make the good available to more people, a lower price should be set.
 If you consume this good, you will be better off.
83. According to the Law of Demand, the demand curve for a good will
 Shift leftward when the price of the good increases.

 Shift rightward when the price of the good increases.
 Slope downward.
 Slope upward.
84. Holding all other factors constant, consumers demand more of a good the
 Higher its price.

 Lower its price.
 Steeper the downward slope of the demand curve.
 Steeper the upward slope of the demand curve.

85. As the price of good increases, the change in the quantity demanded can be
shown by
 Shifting the demand curve leftward.

 Shifting the demand curve rightward.
 Moving down along the same demand curve.
 Moving up along the same demand curve.
86. If the price of automobiles were to increase substantially, the demand curve
for gasoline would most likely
 Shift leftward.
 Shift rightward.
 Become flatter.
 Become steeper.
87. If the price of automobiles were to decrease substantially, the demand curve
for automobiles would most likely
 Shift leftward.
 Remain unchanged.
 Become steeper.
88. If the price of automobiles were to decrease substantially, the demand curve
for public transportation would most likely
 Shift leftward.
 Remain unchanged while quantity demanded would change.
89. An increase in the demand curve for orange juice would be illustrated as a
 Leftward shift of the demand curve.

 Rightward shift of the demand curve.
 Movement up along the demand curve.
 Movement down along the demand curve.

90. If government regulations prohibit the production of a particular good, the
demand curve for that good will most likely
 Shift leftward.
 Disappear.
91. To determine the total demand for all consumers, sum the quantity each
consumer demands
 At a given price.
 At all prices and then sum this amount across all consumers.
 Both a and b will generate the same total demand.
 None of the above
92. Suppose the demand curve for a good shifts rightward, causing the
equilibrium price to increase. This increase in the price of the good results in
 A rightward shift of the supply curve.

 An increase in quantity supplied.
 A leftward shift of the supply curve.
 A leftward movement along the supply curve.
93. Equilibrium is defined as a situation in which
 Neither buyers nor sellers want to change their behavior.

 No government regulations exist.
 Demand curves are perfectly horizontal.
 Suppliers will supply any amount that buyers wish to buy.
94. If price is initially above the equilibrium level,
 The supply curve will shift rightward.

 The supply curve will shift leftward.
 Excess supply exists.
 All firms can sell as much as they want.

95. A competitive equilibrium is described by
 A price only.
 A quantity only.
 The excess supply minus the excess demand.
 A price and a quantity.
96. In the labor market, if the government imposes a minimum wage that is below
the equilibrium wage, then
 Workers who wish to work at the minimum wage will have a difficult time finding
jobs.
 Firms will hire fewer workers than without the minimum wage law.
 Some workers may lose their jobs as a result.
 Nothing will happen to the wage rate or employment.
97. The change in price that results from a leftward shift of the supply curve will
be greater if
 The demand curve is relatively steep than if the demand curve is relatively
flat.
 The demand curve is relatively flat than if the demand curve is relatively steep.
 The demand curve is horizontal than if the demand curve is vertical.
 The demand curve is horizontal than if the demand curve is downward sloping.
98. The change in price that results from a rightward shift in demand will be
greater if
 The supply curve is horizontal than if the supply curve is upward sloping.
 The supply curve is relatively steep than if the supply curve is relatively
flat.
 The supply curve is upward sloping than if the supply curve is vertical.
 The supply curve is horizontal than if the supply curve is vertical.
99. If the demand curve for a good is horizontal and the price is positive, then a
leftward shift of the supply curve results in
 A price of zero.
 An increase in price.
 A decrease in price.
 No change in price.

100. A vertical demand curve results in
 No change in quantity when the supply curve shifts.

 No change in price when the supply curve shifts.
 No change in the supply curve being possible.
 No change in quantity when the demand curve shifts.
101. A vertical demand curve for a particular good implies that consumers are
 Sensitive to changes in the price of that good.

 Not sensitive to changes in the price of that good.
 Irrational.
 Not interested in that good.
102. The percentage change in the quantity demanded in response to a

percentage change in the price is known as the
 Slope of the demand curve.

 Excess demand.
 Price elasticity of demand.
 All of the above.
103. If the price elasticity of demand for a good is less than one in absolute terms,
we say consumers of this good
 Are not very sensitive to price.

 Are not very sensitive to the quantity they demand.
 Are very sensitive to price.
 Are elastic.
104. The fundamental economic problem faced by all societies is:
 Unemployment
 Inequality
 Poverty
 Scarcity

103 Legal Aspects of Business
1. Not following the rules laid by the law is ____________
 An excuse
 Not an excuse
 Punishment
 Offence
2. ____________ means offer + acceptance
 Arrangement
 Contract
 Agreement
 Validity
3. Contract means agreement + ________________.
 Promise
 Consensus
 Enforceability by law
 Persona
4. The two contracting parties must agree as regards the subject-matter of the
contract at the same time &in the same sense is called as __________.
 Persona
 Consensus-ad-idem
 Reciprocal promise
 Accepted proposal
5. There is ____________ essential element of contract.
 3
 5
 9
 10

6. Technical term of void contract is _________.
 Voidable contract
 Void-ab-initio
 personam
 Void agreement
7. Third party does not acquire any rights in case of ____________.
 Void agreement
 Executed contract
 Executor contract
8. _______ is one the object of which is unlawful.
 Void contract.
 Wager.
 An illegal agreement.
 Voidable contract.
10. A proposal, when accepted becomes a ________.
 Promise
 Contract
 Offer
 Consensus
11. The law relating to contracts is contained in the Indian contract act,
_____________.
 1870
 1871
 1872
 1873

12. The term ________ is defined as a legal tie which imposes upon a definite
person or persons the necessity of doing or abstaining from doing a definite act
or acts.
 Agreement
 champerty
 Obligation
 Promise
13. According to validity, contract can be classified into ________ types.
 4
 5
 6
 3
14. According to formation, contract can be classified into ________ types.
 1
 2
 3
 4
15. According to performance, contract can be classified into ________ types.
 1
 2
 3
 4
16. According to Execution, Contract can be classified into _________ types.
 1
 2
 3
 4

17. If the terms of a contract are expressly agreed upon between the parties at the
time of formation of the contract, it is called as __________.
 Express contract
 Executory contract
 Implied contract
 Express offer
18. A permits a coolie to put his luggage to a carriage. The contract comes into
existence as soon as the coolie puts the luggage. So A has only to fulfill his part.
This is an example for __________.
 Unilateral contract
 Bilateral contract
 Implied contract
 Executed contract
19. The obligation of both the parties to the contract are pending at the time of
formation of the contract is called as ____________.
 Wagering contract
 Bilateral contract
 Illegal contract
 Unenforceable contract
20. A contracts to pay Rs. 10,000 if Bs house is burnt. This is a ________.
 Wagering contract
 Contingency contract
 Executory contract
 Quasi contract
21. An advantage or benefit, moving from one party to the other is called as
________.
 Lawful consideration
 Lawful object
 Free consent
 Illegal consideration.

22. A agrees with B to put life into B’s dead wife, the agreement is void as it is
_________.
 Impossible to perform.
 Low capacity of the parties.
 Illegal.
 Fraud.
23. Performance of contract can be classified into ________ types.
 1.
 2.
 3.
 4.
24. Attempted performance can be otherwise called as __________.
 Tender.
 Estimation.
 Quotation.
 Discharge.
25. ____________ means passing over rights and liabilities from one person to
another person.
 Devolution.
 Endorsement.
 Passing the buck.
 Escapism.
26. Promises which form the consideration or part of the consideration for each
other, are called __________.
 Reciprocal promise.
 Reciprocal offer.
 Reciprocal performance.
 Consideration

27. Transfer of contractual rights & liabilities to a third party is called as
__________.
 Devolution.
 Assignment.
 Endorsement.
 Alternative course of action.
28. Termination contractual relations between the parties to a contract is called

as ________ .
 Performance of contract.
 Discharge of contract.
 Winding up of contract.
29. Discharge of performance can be broadly classified into _________

categories.
 4.
 5.
 6.
 3.
30. Substitution of a new contract for the original contract is called as ______.
 Novation.
 Rescission.
 Alteration.
 Remission.
31. ___________ means intentional relinquishment of a right under the contract.
 Waiver.
 Wager.
 Alteration.
 Rescission.

32. Impossibility of performance can be classified into ______ categories
 1.
 2.
 3.
 4.
33. If any parties to the contract refuses or fails to perform his part of the contract
or by his act makes it impossible to perform his obligation under the contract is
called as _________
 Breach of contract.
 Void contract.
 Tender.
 Novation.
34. ___________ occurs when the party declares his intention of not performing
the contract in prior.
 Anticipatory breach of contract.

 Actual breach of contract.
 Discharge of contract.
 Remission.
35. There are _________ ways for actual breach of contract
 1.
 2.
 3.
 4.
36. The technical term Quantum Meruit denotes ____________
 Performance of a contract.
 Quantity involved in contract.
 Suit for specific performance.
 As much as earned.

37. When a contract has been broken, the injured party can recover from the
other party such damages as naturally& directly arose in the course of things
from the breach is called as ____________
 Ordinary damages.
 Special damages.
 Vindictive damages.
 Nominal damages.
38. ___________ means a right not to perform obligation
 Rescission.
 Novation.
 Quantum merit.
 Punishment.
39. Damages which may reasonably be supposed to have been in the

contemplation of both parties as he probable result of the breach of a contract is
known as ________
 Vindictive damages.
40. Damages in the nature of punishment is called as __________
 Exemplary damages.
 Novation.
41. The court order to restrain a person not to do a particular activity is called as
________
 Quantum meruit.
 Specific performance.
 Injuction.
 Novation.

42. The aggrieved party in breach of contract has not suffered any loss by reason
of the breach of contract,
The damages recoverable by him is ________
 Payment of interest.
43. A person should not be allowed to enrich himself unjustly at the expense of
another is the principle of ____________
 Contingent contract.
 Wagering contract.
 Quasi contract.
 Void contract.
44. Law of quasi-contract is also known as ________
 Law of returns.
 Law of restitution.
 Law of repudiation.
 Law of contract.
45. Section 68 to 72 of the Indian contract act deals with ________
 1.
 3.
 5.
 7.
46. Technical term exaequo-et-bono denotes _________
 Plantiff
 Enrichment
 As much as earned
 Justice & fairness

47. Coercion involved the usage of _________
 Fraud
 Misrepresentation
 Undue influence
 All the above
48. Responsibility of finder of goods under contract is __________
 Indemnifier
 bailee
 Owner
 Dispatcher
49. Mr. A, a tradesman, leaves goods at Mr. Bs house by mistake Mr. B treats the
goods as his own. He is bound to pay for them to Mr. A. This is an example for
obligation to pay for ________
 Non-gratuitous act
 Gratuitous act
 Coercion
 Quantum merit
50. A contract which rises on the basis of coercion is called as _________
 Void contract
 Illegal contract
 Lawful contract
51. Contingent contract is a _____________.
 Void
 Voidable
 Valid
 Illegal

52. A quasi- contract ________________.
 Is a contract.
 Is an agreement.
 Has only a legal obligation
 Contingent contract
53. When an agreement is discovered to be void, any person who have received
any advantage under such agreement ______________.
 Is bound to restore it
 Is not bound to return it
 May retain it
 No need to return
54. A minor has been supplied necessaries on credit_____________.
 He is not liable.
 He is personally liable.
 His estate is liable.
 He is only personally liable.
55. A person who finds goods belonging to another and takes them into his
custody, is subject to the same responsibility as a ________________.
 Bailee
 True owner
 Thief
 Agent
56. A finder of lost goods is a________________.
 Bailer
 Bailee
 True owner
 Thief

57. Quantum merit means____________.
 A non-gratuitous promise
 An implied promise
 As much as is earned
 As much is paid
58. The court may grant rescission was the contract is _____________.
 Voidable at the option of plaintiff

 Void
 Unenforceable
 Illegal
59. If specific performance may be ordered by the court when__________.
 The contract is voidable.

 Damages are an adequate remedy.
 Damages are not an adequate remedy.
 The contract is void.
60. Which Of The Following Best Describes As A Contract?
 An Agreement In Writing
 An Agreement Enforceable By Law.
 An Agreement Between Buyer And Seller
 An Agreement.
61. How Many Minimum Parties Are Required For An Contract?
 Four
 Three
 Two
 One

62. Which Relationship Plays Role As An Essential Of The Contract?
 Legal
 Illegal
 Familiar
 Business
63. When Both Parties Fulfil Their Respective Obligation It Is Called -----?
 Executed Contract
 Executory Contract
 Partly Contract
 Quasi Contract
64. Contract This Is Set Off At Option Of Any One Party Is ____?
 Void
 Voidable
 Ilegal
 Unlawful
65. Obligation Of Two Parties Is Required In Which Type Of Contract?
 Implied
 Unilateral
 Bilateral
 Expressed
66. Person Who Accepts The Proposal Is?
 Promisor
 Promisee
 Party To Contract
 Acceptor

67. The Price / Value Paid For The Contract Is Called As?
 Remuneration
 Consideration
 Duty
 Amount
68. Consideration Can Be?
 Past
 Present
 Future
 All Of The Above.
69. Contract Of Agency Is Exception To The Rule In Contract Of?
 Offer And Acceptance

 Consideration
 Agreement
 Void Contract
70. "Two Or More Parties Agree Upon Same Thing In Same Sense” Is Defined As
?
 Consent
 Free Consent
 Agreement
 Consideration
71. Which Is NOT The Condition For Consent To Be FREE?
 Fraud
 Mistake
 Minority
 Coercion

72. Promise That Form The Consideration Or Part Of Consideration For Each
Other Are Called?
 Mutual Promise
 Concurrent Promise
 Conditional Promise
 Reciprocal Promise
73. When Rights And Obligations Created In Contract Come To An END It Is?
 Set Off Of Contract

 Discharge Of Contract
 Cancellation Of Contract
 Assignment Of Contract
74. "As Much As Is Earned” Is Referred To ?
 Injunction
 Quantum Meruit
 Alteration
 Consideration
75. Order Of The Court Asking To Abstain From Doing Something Refers To?
 violability
 Justice For Contract
 Injuction
 Gratitious Act
76. Contract By Which One Parties Promises To Save To The Other From Loss
Caused To Him By The Conduct Of Promiser Himself Or By Conduct Of Any Other
Person Is Called As?
 Contract of guarantee
 Contract of indemnity
 Contract of agency
 Quasi contract

77. Following Guarantee Is When Given For Existing Debt or Obligation
 Retrospective
 Prospective
 Constructive
 Creative
78. Discharge Of Contract Of Surety From His Liability By
 Revocation
 Conduct
 Principal Debtor
 All Of These
79. When A Person Is Denied From Truth Or Statement To Be Made Is Agency

For?
 Estoppel
 Holding Out
 Necessity
 Tenancy
80. Which Agent Has Unlimited Power With Legal And Lawful Authority?
 Special
 General
 Universal
 Co Agent
81. Contract Where Agent Do Not Have Authority To Act On Behalf Of Principal
And If Exceeded Makes No Binding On Principal Relates?
 Ratification
 Tantamount
 Expressed Agency
 Infringement

82. Who Act As An Middleman Between Buyer And Seller?
 Factor
 Broker
 Auctioneer
 Sub Agent
83. Clearing Agent Is Appointed For?
 Clearing Of Goods
 Cleaning Of Goods
 Selling Of Goods
 Export or Import Of Goods
84. Renunciation Of Business Of Agent Leads Towards?
 Continuation Of Agency Contract

 Termination Of Agency Contract
 Holding Of Agency Contract
 Legal Action By Court
85. Recover The Damages Is Duty Of Principal Towards ?
 Himself
 Agent
 Third Party
 Importer Or Exporter
86. Stoppage In Transit Of Goods Can Be Done By Which Person
 Principal
 Agent
 Middleman
 Broker

87. Buyer Means
 Who Buys Or Agrees To Buy

 Exchanges The Goods
 Pays For The Contract
 Party To The Sale Of Goods
88. Transfer Of Property Or Ownership Is Required In?
 Contract Act
 Partnership Act
 Negotiable Instrument Act
 Sale Of Good Act
89. Situation Where Only Transfer Of Possession Takes Place And Not Of
Ownership
 Sale
 Hire Purchase
 Bailment
 Agreement To Sale
90. Stipulation To The Main Purpose Of Contract ?
 Condition
 Warranty
 Agency Contract
 Mortgage
91. Sale By Sample And Description Refers With
 Implied Condition
 Implied Warranty
 Expressed Condition
 Expressed Warranty

92. Nemo Dat Quo Dot No Habet Is Similar With ?
 Transfer Of Title And Ownership

 Transfer Of Goods
 Transfer Of Custody Of Goods
 Transfer Of Possession
93. Caveat Emptor Is?
 Let The Agent Beware

 Let The Principal Beware
 Let The Buyer Beware
 Let The Seller Beware
94. What Is Right Give By Either Buyer Or Seller To Hold And Use With
Possession of Goods?
 Doctrine Of Estoppels
 Hindrances In Contract
 Quiet Possession
 Disclosed Possession
95. Which Delivery Is Related When Holder Inform To buyer to Take Possession
Of Goods from a particular person or a particular location?
 Actual
 Symbolic
 Constructive
 Designed
96. Seller Is Said To Be Unpaid When ?
 Whole Or Part Is Remained To Be Paid

 Part Is Remained To Be Paid
 Goods Are Not Delivered
 Value Of Contract Is Not Decided.

97. Cancellation Of Contract Of Sale Before Due Date Is?
 Suit For Price

 Suit For Conjunction
 Out Of Court Settlement
 Repudiation Of Contract
98. Public Bid And Offer For Sale Is Called Is?
 Auction
 Hire
 Delivery Of Goods
 Out Bid
99. In Auction Sale Which Party Has A Reserved Rite
 Buyer
 Auctioneer
 Auctioneer
 Seller
100. Injunction Is What Form Form For The Contract?
 Set Aside Of Contract

 Breach Of Contract
 Violation Of Contract
 Agreement To Sell
101. Which Contract States About The Happening Or Non Happening Of An

Particular Event?
 Wagering Contract
 Contingent Contract
 Agency Contract
 Sale Of Goods Contract

102. Who Haves the Right Of Subrogation?
 Principal Debtor
 Creditor
 Co Surety
 Agent
103. Indemnity Contract Means?
 Save From Loss Caused By Promisr Or Any Other Person

 Save From Loss Caused By Promisor Only
 Save From Loss Caused By Third Party
 Save From Loss Caused By Promiser, Promiser Or Third Party
104. Preserve The Right And Liability Of Finder Of Goods Is Constituent Of?
 Right of Resale
 Agreement to Sale
 Quasi Contract
 Contract Of Guarantee
105. In Agency Contract The Relationship Between Parties Are?
 Expressed
 Implied
 Expressed And Implied
 Not Necessary
106. Define "Delivery Of Goods "?
 Transfer Of Possession Of Goods From One Person To Another

 Legally Transfer Of Possession Of Goods From One Person To Another
 Compulsorily Transfer Of Possession Of Goods From One Person To Another
 Voluntary Transfer Of Possession Of Goods From One Person To Another

107. Withhold the Delivery Is Right Given To?
 Principal and Agent

 Unpaid Seller
 Guarantor
 Surety
108. Sale Of Goods Act Is Passed In The Year?
 1930
 1931
 1932
 1933
109. An Agreement Enforceable By Law Is Called As?
 Agreement To Sell
 Contract
 Offer
 Acceptance

104 Business Research Methods
1. In the research process, the management question has the following critical
activity in sequence.
 Origin, selection, statement, exploration and refinement

 Origin, statement, selection, exploration and refinement
 Origin, exploration, selection, refinement, and statement
 Origin, exploration, refinement, selection and statement
2. The chapter that details the way in which the research was conducted is the
_________________________ chapter
 Introduction
 Literature review
 Research methodology
 Data analysis
 Conclusion and recommendations
3. Business research has an inherent value to the extent that it helps

management make better decisions. Interesting information about consumers,
employees, or competitors might be pleasant to have, but its value is limited if the
information cannot be applied to a critical decision.
 True
 False
4. The researcher should never report flaws in procedural design and estimate
their effect on the findings
 True
 False
5. Adequate analysis of the data is the least difficult phase of research for the
novice.
 True
 False

6. The validity and reliability of the data should be checked occasionally
 True
 False
7. Researchers are tempted to rely too heavily on data collected in a prior study
and use it in the interpretation of a new study
 True
 False
8. What is a good research? The following are correct except
 Purpose clearly defined

 Research process detailed
 Research design thoroughly planned
 Findings presented ambiguously
9. Greater confidence in the research is warranted if the researcher is

experienced, has a good reputation in research, and is a person of integrity
 True
 False
10. A complete disclosure of methods and procedures used in the research study
is required. Such openness to scrutiny has a positive effect on the quality of
research. However, competitive advantage often mitigates against methodology
disclosure in business research.
 True
 False
11. Research is any organized inquiry carried out to provide information for
solving problems.
 True
 False

12. In deduction, the conclusion must necessarily follow from the reasons given.
In inductive argument there is no such strength of relationship between reasons
and conclusions.
 True
 False
13. “Conclusions must necessarily follow from the premises.” Identify the type of
arguments that follows the above condition.
 Induction
 Combination of Induction and Deduction
 Deduction
 Variables
14. Eminent scientists who claim there is no such thing as the scientific method,
or if exists, it is not reveled by what they write, caution researchers about using
template like approaches
 True
 False
15. One of the terms given below is defined as “a bundle of meanings or

characteristics associated with certain events, objects, conditions, situations,
and the like
 Construct
 Definition
 Concept
 Variable
16. This is an idea or image specifically invented for a given research and/or
theory building purpose
 Concept
 Construct
 Definition
 Variables

17. The following are the synonyms for independent variable except
 Stimulus
 Manipulated
 Consequence
 Presumed Cause
18. The following are the synonyms for dependent variable except
 Presumed effect
 Measured Outcome
 Response
 Predicted from…
19. In the research process, a management dilemma triggers the need for a
decision.
 True
 False
20. Every research proposal, regardless of length should include two basic
sections. They are:
 Research question and research methodology

 Research proposal and bibliography
 Research method and schedule
 Research question and bibliography
21. The purpose of the research proposal is:
 To generate monetary sources for the organization

 To present management question to be researched and its importance
 To discuss the research efforts of others who have worked on related
management question.
 Choice a) is incorrect

23. Non response error occurs when you cannot locate the person or could not
encourage the respondent to participate in answering.
 True
 False
24. Secondary data can almost always be obtained more quickly and at a lower
cost than __________data.
 Tertiary
 Collective
 Research
 Primary
25. The purpose of __________________ research is to help in the process of

developing a clear and precise statement of the research problem rather than in
providing a definitive answer.
 Marketing
 Causal
 Exploratory
 Descriptive
27. the quality of a research to produce almost identical results in successive

repeated trials reflects its:
 reliability
 validity
 accuracy
28. A systematic, controlled, empirical, and critical investigation of natural

phenomena guided by theory and hypothesis is called _____________
 Applied Research
 Basic Research
 Scientific Research
 None Of The Above

29. __________________ is the determination of the plan for conducting the
research and as such it involves the specification of approaches and
procedures..
 Strategy
 Research Design
 Hypothesis
 Deductive
30. If the researcher is concerned with finding out who, what where, when, or
how much, then the study is __________.
 Exploratory
 Descriptive
 Empirical
 Causal
 Casual
31. If the study is carried out once and represent a snapshot of one point in time,
then the study is ___________
 Time related study

 Longitudinal study
 Cross sectional study
 Case studies
32. If the study is repeated over an extended period, then the study is called as
___________

 Descriptive study
 Time series analysis/study
33. When we try to explain the relationships among variables, the study is called
 Exploratory study
 Causal study

34. Some major descriptors of research design are the following except
 Descriptive and causal

 Cross sectional vs longitudinal
 Exploratory vs formalized
 Observational vs interrogation/communication
 Honorary vs beneficial
35. A research design is the strategy for a study and the plan by which the
strategy is to be carried out
 True
 False
36. We test causal hypothesis by seeking to do three things. Those are the
following except:
 Measure the co-variation among variables

 Ignoring the relationships of one variable with the other
 Determine the time order relationships among variables
 Ensure that other factors do not confound the exploratory relationships
37. The procedure by which we assign numbers to opinions, attitudes, and other
concepts is called ________________
 Scaling
 Measurement
 Sampling
 Data Collection
38. ____________________ presents a problem, discusses related research

efforts, outlines the data needed for solving the data and shows the design used
to gather and analyze the data.
 Research Question
 Research Proposal
 Research Design
 Research Methodology

39. “Number of cars in a parking lot”, “Number of students in a class” are
examples of :
 Dichotomous variable.
 Discrete variable.
 Continuous variable.
41. Exploratory research design includes:
 Secondary Data Analysis.

 The who, what, when, where, and how of a topic.
 Reciprocal Relationship.
 Asymmetrical Relationship.
42. A set of systematically interrelated concepts, definitions and propositions

that are advanced to explain and predict phenomena is called
 Research
 Model
 Theory
43. The process by which the sample is constructed to include all elements from
each of the segments is called:
 Systematic sampling
 Cluster sampling
 Double sampling
 Stratified random sampling
44. Which of these is not a characteristic of a good research?
 Purpose clearly defined

 Limitations frankly revealed
 Research design thoroughly planned
 Findings presented ambiguously.

46. ________ is a bundle of meanings or characteristics associated with certain
events, objects.
 Concept
 Construct
 Variables
 Moderating variables
47. Which of these is not a exploratory research design.
 Secondary data analysis

 Experience survey
 Focus group
 Reporting
49. In _________ , each sample has equal and known chance of selection.
 Simple random sampling

 Cluster sampling
 Stratified sampling
 Snowball sampling
50. Data that is created, recorded or generated by an entity other than the
researcher's organisation is collectively called
 Primary data
 Secondary data
 Internal data
 External data
51. Total survey error can be broadly divided into random sampling error and
 Non-random sampling error

 Schematic error
 Systematic error
 Administrative error

52. A statistical fluctuation that occurs because of change variation in the
elements selected for the sample is called
 Random sampling error

 Systematic error
 Administrative error
 Error of judgment
53. When the results of a sample show a persistent tendency to deviate in one
direction from the true value of the population parameter, it is a case of
 Interviewer bias
 Respondent bias
 Sample bias
54. A bias that occurs when respondents tend to answer questions with a certain
slant that consciously or uncounsciously misrepresents the truth is called
 Respondent bias
 Non response bias
 Response bias
 Non response bias
55. The category of response bias that results because some individuals tend to
agree with all questions or to concur with a particular position is called
 Auspices bias
 Social desirability bias
 Extremity bias
 Acquiescence bias
56. Sue Smith, president of the local APICS chapter, had difficulty getting
members to assist in running the organization. She felt it was because of lack of
commitment to APICS. Her vice-president believed it was due to having too many
meetings. The organization’s secretary thought it was because there were
several other professional organizations to which the members also belonged. If
Sue wants to do research to determine the real reason why members are not
active in the organization, she should begin by:

 Determining the optimum number of meetings
 Evaluating the advantages APICS offers over other similar organizations
 Defining the problem
 Developing the marketing research plan that she would employ
 Holding focus groups with members of similar organizations to determine
whether the problems APICS is facing are universal or local
57. After working for a plumbing contractor for several years, Ken Crowe finally
established his own plumbing shop. Unfortunately, Crowe's first six months have
been disappointing. Crowe decided to conduct a marketing research study to
gather preliminary data to shed light on the nature of the problem and suggest
some new ideas. He needs to conduct _____ research.
 Exploratory
 Causal
 Secondary
 Descriptive
 Observational
58. The manufacturer of Brother sewing machines wants to know the effect
rebates have on sales. It plans on dividing its retailers into three regions. One
group will offer consumers who buy a Brother sewing machine a $25 cash
rebate. One will offer buyers of the machine $50 worth of “free” machine
accessory parts. A third region will offer buyers a $40 store credit. The results of
this market research will provide Brother with _____________ data.
 Observational
 Survey
 Secondary
 Experimental
 Descriptive
59. Respondents are asked to rate an attitude object on a number of multiple-

point rating scales bounded at each end by one of two bipolar adjectives or
phrases. This type of question is called:
 Dichotomous
 A semantic differential
 Multiple choice
 Rating scale
 A likert scale

60. If the guests at Bayside Resort were asked to rate their night’s sleep on a
scale with the following ratings: excellent, very good, good, fair, poor, the resort
would be using a(n) _____ to gather primary data.
 Semantic differential
 Importance scale
 Rating scale
 Dichotomous question
 Likert scale
61. The question, “What is your opinion on the safety of American highways?” is
an example of a _____ question.
 Completely unstructured
 Thematic
 Dichotomous
 Rating
62. The contact method that minimizes interviewer bias is:
 Mail
 Telephone
 Intercept interview
 Focus group
 Personal interview
63. If time is of the essence for a research project, the preferred contact method
is:
 Mail
 Telephone
 Focus group

64. The best contact method to use to quickly determine how many people saw
the commercial for the new Volkswagen Beetle that ran last night during the
television show Friends would be:
 Mail
 Internet
 Telephone
 Focus group
65. If flexibility is the most important criterion for a research project, the preferred
contact method is:
 Telephone
 Focus group
 Mail
66. Personal interviewing takes two forms. They are:
 Arranged interview and intercept interview

 Depth interview and simple interview
 Online interview and offline interview
 Focus-group interview and individual interview
 Adaptive interview and static interview
67. Research is an expensive, sophisticated process that is often beyond the

reach of small businesses with their limited budgets.
 True
 False
68. Primary data are generally available more quickly and at a lower cost than
secondary data.
 True
 False

69. A producer of herb mixes that wants to explore adding new products should
use close-ended questions in interviews with a sampling of its current
customers.
 True
 False
70. Students surveyed were asked the following question: "I would support a
company that provides my school with scholarships. "
Strongly Agree
Agree
Neither Agree Nor Disagree
Disagree
Strongly Disagree
This survey used a(n):
 Thematic apperception test
 Importance scale
 Open-ended question
 Likert scale
71. A variable that is not influenced by or not dependent on other variables in

experiments is called
 Independent variable
 Dependent variable
 Experimental variable
72. Personal interviewing of a certain percentage of individuals who pass by

certain points in a shopping center is also known as
 On-site interviewing
 Focus group interviewing
 In-home interviewing
 Intercept interviews

73. A researcher wants to study the characteristics of people who are heavy
users of film (purchase more than 12 rolls per year). This group is referred to as
the:
 Sample
 Census
 Population
74. Kellogg seeks to determine consumer believability towards it's products'

health claims. The most appropriate technique for this purpose is
 Observation
 Survey
 Experimentation
 Simulation
75. Which data collection techniques cannot study attitudes?
 Observation
 Mail survey
 Multidimensional scaling
76. Which type of sampling uses whoever seems to be available
 Stratified sampling
 Area sampling
 Quota sampling
 Convenience sampling
77. _______________ sampling is especially useful when you are trying to reach
population that are inaccessible or hard to find.
 Convenience sampling
 Quota sampling
 Snowball sampling
 All of the above

79. reactions of customers to current products, customer preferences, and a
record of past purchases can most often be obtained from
 profit and loss statement

 inventory records
 salespeople call reports
 customer billings
81. Which of these statements about data collection is correct
 a firm should approach data collection as an ongoing activity

 a firm needs a computer to successfully implement collection and retrieval of
information
 research projects should always include sampling
 a firm should not spend on research
82. The quality of a research to produce almost identical results in successive

repeated trials reflects it's
 Reliability
 Validity
 Accuracy
83. An easy reference about the sources of the data through which the research
has been compiled is provided by the
 Footnotes
 Executive summary
 Introduction
 Bibliography
84. What should a market researcher do once he or she has defined the problem
and the research objectives?
 Collect the information

 Budget for information collection
 Develop the research plan
 Sample the population
 Develop a survey instrument

87. The group on which the researcher wants to generalize the results of his
study is called the
 sampling frame
 study population
 theoretical population
 sample
88. One of the best survey methods that can be used for all research situations is
the e-mail questionnaire surveys
 True
 False
89. A critical review of the information, pertaining to the research study, already
available in various sources is called
 Research review
 Research design
 Data review
90. When planning your literature search you need to:
 Have clearly defined research questions and objectives

 Define the parameters of your search
 Generate key words and search terms
 All the above
91. The first step in the research process is the:
 Development of the research plan

 Survey of stakeholders to determine if problems exist
 Collection of the available sources for needed information
 Definition of the problem and research objectives

93. A base document for research purposes, providing the questions and
structure for an interview or self-completion and providing space for respondents
answers is more popularly known as a
 questionnaire
 scaling
 tests
 none of the above
94. Rosco Publishing Company sells books to college students on test-taking

skills, motivation, relationship management, and ways to deal with stress. Its
wants to use a probability sampling method that will ensure the percentage of
freshmen, sophomores, juniors, seniors, and graduate students in the sample
reflect the percentage on the college campus. What is the best sampling method
for the publisher to use?
 simple random sample

 stratified random sample
 quota sample
 judgment sample
95. The basic idea of sampling is that by _______________ some of the elements
in a population, we may draw conclusions about the entire population.
 clustering
 selecting
 commenting
 tabulating
96. The inclusion of open-ended questions on many questionnaire means that a

significant amount of ________________ data is also collected.
 secondary
 quantitative
 qualitative
 primary

97. Dividing population into subpopulations (strata) and using simple random on
each strata is called _____________________ sampling.
 stratified
 systematic
 cluster
 judgement
98. in depth interviews are exactly as the name suggests and use an interview
schedule rather than a formal questionnaire as the basic __________ collection
instrument
 data
 number
 information
99. an appropriate adage might be, "a problem well defined is a problem half
solved.," an orderly definition of the research problem gives a sense of
____________ to the investigation
 direction
 seriousness
100. The effective use of information requires a thorough understanding of the

___________ of information available and how the information is gathered
 Mode
 Plan
 Types
101. A significant proportion of the marketing research approaches is based on

_________ constructs from the social sciences and systems thinking
 practical
 effective
 theoretical

102. The key objective of any training activity is to ensure that the data collection
instrument will be administered by all interviewers in a uniform and ____________
manner
 fashionable
 smart
 consistent
 inconsistent
103. The conversion of the raw data into information means that the data needs to
be ___________ and coded so that it can be transferred onto a computer or other
data storage media
 edited
 audited
 amalgamated
 converted
104. The major disadvantage with in depth interviews is that because of their time
consuming nature it is usually only possible to carry out a relatively small
number of such interviews and as such the results are likely to be highly
____________
 subjective
 objective
 questionable
 objectionable
105. A population is the total collection of elements about which we wish to make
some __________
 Census
 Inferences
 Demographic

106. Students surveyed were asked the following questions: "which cereals have
you seen advertised within the last three months?" The survey used a(n):
 semantic differential
 thematic apperception test
 importance scale
 open ended question
 likert scale
107. Which is not an element of a good sample
 precision
 accuracy
 representation
 large sample
108. It is not advisable to include a covering letter along with the questionnaire.
 true
 false
109. Until recently Canadian condo developers operated under the philosophy,
“Build it and they will buy.” Then, Stan Kates launched the Preferred Home
Buyer Alliance. He is in the process of creating a database of new homebuyers
and prospective homebuyers in Ontario who provide his organization with
information about what they want and don’t want in their homes. A builder can
contract with Kates and find out, for example, if homebuyers with small children
prefer track lighting or two sinks in the master bedroom. The database also has
information on homebuyer’s favorite restaurants and hobbies. One way Kates
collects this data is through a gathering of six to ten new and prospective
homebuyers who are invited to talk about their ideal home. Kates uses _____
research.
 Focus-group
 Experiential
 Observational
 Causal
 Behavioral

111. Once obtained there is no need to evaluate the relevance of the literature to
your research question and objectives
 true
 false
112. Usually, syndicated data services can provide consumer panel data at a
much lower cost that if a company carried on it's own panel operations
 true
 false
113. Which of the following types of causal research projects would a company
that publishes custom cookbooks used for fundraisers by churches, colleges,
and civic groups choose?
 A study to determine the types of fundraising most commonly use by church

groups
 A survey of previous customers to see if they are interested in a new edition
 A study determining if more people buy the custom cookbook when the
cover has a picture relating to the group selling it, rather than if it has just a
generic cover.
 A study to determine the price range for an average sized cookbook
 An industrial study of what similar publishing companies are doing to better serve
their customers
114. Which of the following is an example of primary data that would be used by
the Ashton - Drake Galleries to determine the popularity of it's precious moments
doll series?
 Input from a focus group that was put together specifically to discuss their
perception of the popularity of the doll series
 An article about the precious moments doll in a recent issue of Crafts magazine
 Sales records for collectible dolls gathered by the industry's trade council
 A survey that noted that dolls are the most often collected item by women
between the ages of 40 and 60
 Data from the sales records kept by the exclusive dealers of the precious
moments dolls

115. How would delta, a manufacturer of acrylic paints used in arts and crafts,
use observational research to gather primary data?
 By surveying current users to find out the ways the paint could be removed
 By watching how members of a class learn to paint mailboxes using the
paint
 By asking users of other brands of paint to list the most important attributes for
acrylic paint
117. Which is typically the most expensive step of marketing research process
 problem definition
 developing the research plan
 information collection
 information analysis
 questionnaire design
118. Which step in the marketing research process is generally considered to be

the most prone to error?
 Problem definition
 Sample framing
 Questionnaire design
 Data collection
 Data analysis
119. Inspite of the rapid growth of research, many companies still fail to use it
sufficiently or correctly. Which of the following describes a reason for this failure
 a narrow conception of marketing research

 unevencaliber of researchers
 poor framing of problems
 personality and presentational differences
 all of the above

120. A semantic differential scale takes a form such as "united airline food
service is __________ excellent ________very good _________good _______fair
_______poor"
 true
 false
121. Data collection that focuses on providing an accurate description of the

variables in a situation forms the basis of which type of study
 exploratory study
 descriptive study
 causal study
122. A condition that exists when an instruments measures what it is supposed to

measure is called
 validity
 accuracy
 reliability
123. A “real world” environment in which experiments take place is also referred
to as
 field settings
 field trips
 field
 field research
 accuracy
125. A sampling method in which the final choice of respondent is left to the
interviewers who base their choices on one or more variables such as age,
nationality, education etc is called
 area sampling
 stratified sampling
 random sampling
 quota sampling

127. Imagine your college is in the process of measuring student satisfaction with
the college’s cafeteria. The college is concerned about the objectivity of the
research process. Which of the following strategies best illustrates objectivity.
 Developing the survey instrument on the basis of the researcher’s

preconceptions of the cafeteria
 Asking students in a personal survey “why do you like the cafeteria?”
and reminding students that the cafeteria food is healthier than the offerings of
the nearby fast food restaurants
 Mailing the questionnaire to a random sample of all students
 Using a personal survey directed to students who purchased a meal card
132. Random sampling error is the difference between the sample _________and
the results of a complete survey of the total population using exactly the same
procedures
 population
 observation
 result
 sample
133. Both stratified and quota sampling have the ______________ objective, the
approaches should not be confused
 different
 objection
 same
 deterrent
134. In the absence of more information to determine a sample size on the basis
of sound statistical principles, at every point the researcher must attempt to
____________- sources of error
 maximize
 minimize
 reject
 accept

135. The depth or in-depth interview is an unstructured __________ in which the
interviewee is encouraged to talk extensively
 interview
 interviewer
 man
 woman
140. While designing a questionnaire, it is best to use only one type of question
so that the respondents find it simple to answer
 true
 false
141. There is no need to give a reference for a journal when there is no obvious
author for the journal
 true
 false
142. What are the qualities of a good hypothesis
 adequate for the purpose

 testable
 better than its rivals
143. What are the two types of arguments
 deduction and induction

 exploratory and deductive
 dejection and injection

144. A ___________________ is conducted to detect weaknesses in research
instrument’s design
 Pilot study
 Questionnaire
 Interview
 Sampling
145. in research ethics, confidentiality should be guaranteed if the researcher

cannot promise anonymity
 true
 false
146. Which of the following is NOT one of the ways to increase response rate for
a questionnaire?
 Attractive cover letter

 Proper timing
 Large number of questions
 remuneration
147. In general the larger the sample, the smaller the
 Sampling proportion
 Population size
 Size of the strata
 Sampling error`
148. reliability is mostly a matter of ______________, while validity is mostly

about _____________
 consistency, accuracy
 accuracy, consistency
 similarity, dissimilarity
 similarity, consistency

150. Text paragraphs, semi tabular form, tables and graphics are used in
____________________
 Introduction
 Presenting statistics
 Appendix
151. Research should be _________________
 accessible
 transparent
 transferable
153. ------------ are Questions the researcher, must answer to satisfactory arrive at
a conclusion about the research question.
 Investigate questions
 Research question
 Measurement question
 Fine-tuning the research question
154. ---------------- Is the degree to which bias is absent from the sample.
 Precision
 Accuracy
 Census
 Presentation
155. The process of searching bibliographic databases includes the

following EXCEPT
 Saving the valuable results of your research

 Selecting a database appropriate to your topic
 retrieve articles not available in the database
 assigning each element within sampling frame
 supplementing your sources with internet sources

156. Sampling _______________ is the list of elements from which the sample is
actually drawn
 File
 Record
 Listing
 Frame
157. Which of the following is the right way of writing a bibliography
 Kotler, P (2000) “Marketing Management” : Prentice Hall International

 Marketing Management (2000) “Kotler, P: Prentice Hall International
 Philip Kotler (2000) “Marketing Management” : Prentice Hall International
 Marketing Management by Philip Kotler : Prentice Hall International (2000)
158. The appendix at the end of the dissertation normally includes a blank sample
questionnaire, tables of raw data and any other useful information not provided in
the main body of the research
 True
 False
159. Identify the dissertation chapter which involves drawing together the main
points revealed in the research, summing them up and stating the implications of
findings.
 Introduction
 Data analysis and findings
 Conclusion and recommendations
160. Through_______researchers develop concepts more clearly, establish

priorities, develop operational definitions, and improve the final research design
 Data collection
 Exploration
 Description
 Definition

161. Exploratory investigation of management question adapts the following
approaches except
 Films, photographs, and videotape

 In-depth interviewing
 Document analysis
 Street ethnography
 Survey method
166. Business research is a systematic inquiry that provides information to guide

business decisions. This includes the following except:
 Reporting
 Descriptive
 Explanatory
 Predictive studies
168. When we mean that reason is a primary source of knowledge, the style of
thinking is named as
 Empiricism
 Rationalism
 Idealism
 Extentialism

105 Organizational Behavior
1. “------------ are social inventions for accomplishing goals through group efforts”
a. Management c. Leadership
b. Organization d. Behavior
2. A study of human behavior in organizational settings is

a. Individual behavior c. Organizational behavior
b. Group behavior d. None of these
3. Scientific Management approach is developed

by
a. Elton Mayo c. F.W. Taylor
b. Henry Fayol d. A. Maslow
4. Who proposed “ bureaucratic structure” is suitable for all organization

b. Henry Fayol d. Max Weber
5.“Hawthrone experiment” which was a real beginning of applied research in OB

was conducted by
7. Process or administrative theory of organization is being given by


8.Today’s organization
are
a. Open system c. Open as well as closed
b. Closed system d. None of these
9.Organization Behavior
is
a. An interdisciplinary approach c. Total system approach
b. A humanistic approach d. All of these
10.Organization Behavior is not a

/an
a. A separate field of study c. Normative science
b. Applied science d. Pessimistic approach
11.“Cognitive theory” of learning was given by

a. Skinner c. Tolman
b. Pavlov d. Piajet
12.--------------is a relatively permanent change in behavior that occurs as a result

of experience
a.Behavior modification c.Motivation
b.Learning d.Skills
13. which of the following is / are included as structure of human mind

a.Id c.Super ego
b.Ego d.All the above

14.----------- is largely childish, irrational, never satisfied, demanding and
destructive of others
a.Ego c.Negative ego
b.Super ego d.Id
15.------------represent noblest thoughts, ideals

etc.
b.Super ego d.Id
16.----------- is reality and practical oriented part of

thinking
b.Super ego d.Id
17. Thematic Apperception Test (TAT) is designed to understand
a.Perception of individual c.Learning of individual

b.Personality of individual d.None of these
18.---------------- is “the reactions of individuals to new or threatening factors in

their work environments”
a.Attitude c.Dissonance
b.Stress d.Disappointment
19.Which of the following is/are not job related source of stress

a.Role ambiguity c.Ethical dilemmas
b.Role overload d.Career concerns

20.Which of the following is/are not organizational factors causing stress
a. Task demand c. Role conflict
b.Role demand d.Satisfaction
21.A technique to bring changes in the entire organization, rather man focusing
attention on individuals to bring changes easily.
a.Organizational development c.Organizational culture

b.Organizational change d.Organizational conflicts
22. Which of the following is/are OD intervention

techniques
a.Sensitivity training c.Quality of work life
b.MBO d.All the above
23. Which of the following is NOT an important issue relating to goal-setting

theory?
a.Goal specificity c.Feedback

b.Equity among workers d.Defining the goal
24.Behavior, power, and conflict are central areas of study for _____________.
a. sociologist b. Anthropologists
c. Social psychologists d. Operations analysts
25.When a bank robber points a gun at a bank employee, his base of power is:
a. Coercive b. Punitive
c. Positional d. Authoritative

26. What do we call it when we judge someone on the basis of our perception?
a. Stereotyping b. Categorizing
c. Halo effect d. Prototyping
27.Sobha is an honest and straightforward person. She believes her employees

are all similarly honest and straightforward, ignoring signs that they may be
manipulating her.
What perceptual shortcut is Sobha most likely using?
a. Contrast effect b. Halo effect
c. Stereotyping d. Projection
27.Raju believes that men perform better in oral presentations than women. What
shortcut has been used in this case?
a.The halo effect c.Projection

b.The contrast effect d.Stereotyping
28.What sort of goals does Management By Objectives (MBO) emphasize?

a. Tangible, verifiable and measurable c. Challenging, emotional and
constructive
b. Achievable, controllable and profitable d. Hierarchical, attainable and effective
29.Which of the following theory is proposed by Clayton Alderfer?

a. Theory X and Theory Y b. Hierarchy of Needs
c. ERG Theory d. Theory

30.Concept of MBO was introduced
by:
a.Peter. F.Drucker c.Henry Fayol
b.Mary Parker d.Philip Kotler
31. Mr. Sunil’s one-day salary was deducted because of his uninformed leave, as
he was already warned about this behavior. It is an example of which method of
shaping behaviors?
a.Reinforcementc. punishment b. Positive Reinforcement
c. Organizational citizenship behavior d. Expectations about alternative jobopportunities
32.Which of the following is not a trait dimension in Big 5 personality trait?

a.Extroversion c.Ego
b.Agreeableness d.Culture
33. In which stage of the conflict process does conflict become visible?
a. Illumination c. Behavior
b. Intentions d. Cognition
34.Which dimension of Big 5 personality traits represents artistically sensitive,

refined etc.
a. Culture c. Conscientiousness
b. Emotional stability d. Extroversion
35.____________ refers to the network of personal and social relations that is

developed
spontaneously between people associated with each other.
a. Formal organization c. Business organization
b. Informal organization d. Government organization

36.The cognitive process through which an individual selects, organizes but
misinterprets
environmental stimuli is known
as_________
a. Perception c. Selective Perception
b. Projection d. Mis-Perception
37.The more consistent behavior, the more the observer is inclined to ___.
a. Attribute it to interpretation c. Attribute it to consensus
b. Attribute it to internal causes d. Attribute it to external causes
38.Which of the following is one of the relationships proposed in expectancy

theory?
a. Reward-satisfaction relationship c. Rewards-personal goals relationship
b. Satisfaction-performance relationship d. Effort-satisfaction relationship
39.In Maslow’s hierarchy needs which of the following pair of needs is ranked as”
lower order needs”?
a. Physiological and safety needs c. Self actualization and safety needs
b. Physiological and social need d. Social and esteem needs
40.Maslow grouped the five needs into two categories

a. Higher-order needs and Lower-order needs. c. Self needs and others needs
b. Supreme needs and local needs d. Luxurious needs and comfort needs
41.If everyone who is faced with a similar situation responds in the same way,
attribution theory
states that the behavior shows
_____.
a. Consensus c. Reliability
b. Similarity d. Consistency

42.Your boss never gives you the benefit of the doubt. When you were late back
from lunch, he
assumed that you had simply taken too much time. He never considered that the
elevators were out and you had to walk up 10 flights of stairs. Your boss is guilty
of _____.
a. Self-serving bias c. Fundamental attribution error

b. Selective perception d. Inconsistency
43.Mr.Sajeev rated Mr. Rajiv high in his job evaluation because both belong to
same area and
graduated from the same University. It is an example of:
a. Central Tendency c. Similar-to-me effect
b. Halo effect d. Misperception
44.All the following are dimensions of Intellectual ability EXCEPT:

a. Inductive reasoning c. Deductive reasoning
b. Dynamic strength d. Number aptitude
45.What sort of actions is most likely to be attributed to external causes?

a.Actions that have high distinctiveness, high consensus and high consistency
b.Actions that have high distinctiveness, high consensus and low consistency
c.Actions that have high distinctiveness, low consensus and low consistency
d.Actions that have low distinctiveness, low consistency and high consensus
46.A threatened strike action by a labour union to force the management to

accept their demands is an example of which of the following power?
a.Referent power c.Reward power
b.legitimate power d.Coercive power

47. Job appraisal is the part of_____________
a. Sociology c. Psychology
b.Anthropology d. Political science
48.What term is used for the extent to which an individual displays different
behaviors in different situations?
a.continuity c.flexibility
b.integrity d.distinctiveness
49.What does consensus refer to in attribution theory?

a.There is general agreement about a perception.
b.Different people respond the same way in the same situation.
c.There is general agreement about how people desire to respond to the same
situation.
d.Different people perceive a situation similarly.
50.If everyone who is faced with a similar situation responds in the same way,
attribution theory states that the behavior shows.
a.consensus c .reliability
b.similarity d.consistency
51. Which of the following is not one of the four primary management functions?
a.Controlling c.Staffing
b.Planning d.organizing

52. Determining how tasks are to be grouped is part of which management
function?
a.Planning c .Controlling
b.Leading d.organizing
53. As a manager, one of James’s duties is to present awards to outstanding

employees within his department. Which Mintzberg managerial role is James
acting in when he does this?
a.leadership role c.monitor role
b.liaison role d.figurehead role
54.Which one of the following would not be considered a human skill in Katz’s
structure?
a.Decision making. c.resolving conflicts
b.Communicating d.working as part of a team
55. According to Katz, when managers have the mental ability to analyze and
diagnose complex
situations, they possess
skills.
a.Technical c.problem-solving
b.Leadership d.conceptual
56. According to Fred Luthans and his associates, which of the following is
considered a part of
traditional
management?
a.Disciplining c.exchanging routine information

b.decision making d.acquiring resources

57. Which of Luthans’ managerial activities involves socializing, politicking, and
interacting with
outsiders?
a.traditional management c.human resource management

b.communicating d.networking
58.An OB study would be least likely to be used to focus on which of the
following problems?
a.an increase in absenteeism at a certain company
b.a fall in productivity in one shift of a manufacturing plant
c.a decrease in sales due to growing foreign competition
d.an increase in theft by employees at a retail store
59.If a person responds the same way over time, attribution theory states that the
behavior shows.
a.Distinctiveness c.Consistency
b.Consensus d.continuity
60. Mr.Balu is late for work each day by about ten minutes. How would attribution
theory describe
this
behavior?
a.It shows consensus. c.It shows reliability.

b.It shows similarity. d.It shows consistency
61.Which of the following is a reason that the study of organizational behavior is
useful?
a.Human behavior does not vary a great deal between individuals and situations.
b.Human behavior is not random.
c.Human behavior is not consistent.
d.Human behavior is rarely predictable.

62.Which behavioral science discipline is most focused on understanding
individual behavior?
a.Sociology c.Psychology
b.social psychology d.anthropology
63. blends concepts from psychology and

sociology.
a.Corporate strategy c.Political science.
b.Anthropology d.Social psychology
64. The subject of organizational culture has been most influenced by which
behavioral science
discipline?
a.Anthropology c.social psychology

b.Psychology d.political science
65. Which of the following OB topics is not central to managing employees’ fears
about terrorism?
a.Emotion c.Communication
b.Motivation d.work design
66. According to management guru Tom Peters, almost all quality improvement
comes from of
design, manufacturing, layout, processes, and
procedures.
a.Modification c.Integration
b.Stratification d.simplification

67. Today’s managers understand that the success of any effort at improving
quality and productivity
must
include.
a.process reengineering c.customer service improvements

b.quality management programs d.employees
68. Most valuable asset in an organization

is
a.Land and building c.Human being
b.Cash and bank balances d.technology
69. What term is used to describe voluntary and involuntary permanent

withdrawal from an
organization?
a.Absenteeism c.Downsizing
b.Turnover d.truancy
70. ______ is discretionary behavior that is not part of an employee’s formal job
requirement, but
that promotes the effective functioning of the
organization.
a.Productivity c.Organizational citizenship
b.Motivation d.Organizational behavior
71. Individual-level independent variables include all of the following except.

a.Leadership c.Perception
b.Learning d.motivation

72. What do we call the view that we can learn both through observation and
direct experience?
a.situational learning theory c.social learning theory
b.classical learning d.the Pavlov principle
73.Most of the learning that takes place in the Class room

is
a.Classical conditioning c.Cognitive learning
b.Operant conditioning d.Social learning
74.…………..are those factors that exists in the environment as perceived by the

individual
a.Physiological drive c.Cue stimuli
b.Psychological drive d.Reinforcement
75.…………..is the process of screening out information that we are

uncomfortable with or that
contradict to our
beliefs
a.Perceptual context c.Halo effect
b.Selective perception d.Stereotyping
76. The extent to which individuals consistently regard themselves as capable,

worthy, successful etc. is
a.Self esteem c.Tolerance for ambiguity
b.Authoritarianism d.Workhollism
77.A learned pre-disposition to respond in a consistently favorable or
unfavorable manner with respect to given
object
a.Perception c.Behavior
b.Attitude d.personality

78.“They are the worst firm I have ever dealt with” is ………components of
attitude.
a.Affective component c.Intentional component
b.Cognitive component d.None of these
79.” Person-Job fit” means

a.Persons physical fitness match with the job
b.Persons skills match with the job
c.Persons contributions match with the incentives offered by the organization
d.Persons education match with the job
80. Which of the following is not an attribute of psychological individual

difference?
a.Motivation c.Personality
b.Learning d.Complexion
81. Which of the following is not an attribute of physiological individual

difference?
a.Appearance c.Attitude
b.Complexion d.Body shape
82.…………is a person’s belief about his chances of successfully accomplishing

a specific task
a.Self esteem c.Self efficacy
b.Job satisfaction d.Self appraisal
83.Select the correct hierarchical order of qualities of an individual

a.Ability-Skills- Aptitude- Competency c. Skills- Aptitude- Competency- Ability
b.Aptitude-Ability- Skills- Competency d. Competency-Ability-Skills- Aptitude

84.As per Stimulus-Response Model, input for behavior process is
a.Drive c.Stimuli
b.Organism d.Response
85.S-O- B-A Model combines the S-R Model

and
a.Stimuli c.Human being
b.Response d.drive
86.An enduring attribute of a person that appears constantly in a variety of

situation is
a.behavior c.attitude
b.trait d.culture

106 Basics of Marketing
1. The process of selecting the segments to serve by offering product is referred
as
 Market segmentation
 Targeting
 Marketing
 Both a and b
2. Firm's performance can be better measured by
 Current sales
 Customer equity
 Market share
 Both a and b
3. The suitable example of 'The Selling Concept' is
 Insurance or blood donations

 Lenovo
 Southwest Airlines
 Bottled water industry
4. The 'outside in' perspective is another name of
 The selling concept

 The product concept
 The marketing concept
 The production concept
5. Considering individual customers, the purchasing portion of each buyer is

called
 Share of customer
 Customer equity
 Customer lifetime value
 None of above

6. Value proposition consists of
 Differentiation
 Segmentation & targeting
 Positioning
 Both a and c
7. The possible objectives of advertising includes
 persuasive advertising
 reminder advertising
 reminder advertising
 all of above
8. To create profits, the company must
 Create loyal customers

 Increase market share of market
 capture lifetime vale of customer
 All of above
9. The most crucial and first step in marketing process is
 Designing a marketing strategy

 Create customer delight
 Understanding customer needs and wants
 Capturing value from customers
10. Major environmental forces are
 Suppliers & consumers

 Company & competitors
 Marketing intermediaries

11. Marketing myopia is to pay attention to
 Product offered by company

 Benefits produced by products
 Experiences associated with products
 None of above
12. Classification of customers is of
 2 types
 3 types
 4 types
 5 types
13. Market offering can be combination of
 product & services

 Information
 Places
 All of above
14. The customer driven marketing strategy is another name of
 The selling concept

 The marketing concept
 The product concept
 The societal marketing concept
15. Market consists of
 Potential buyers
 Actual buyers
 Both a and b
16. The kind of strategy which is used by the company to achieve advertising
objectives is classified as

 advertising strategy
 advertising objective
 advertising messages
 advertising budget
17. According to management guru Peter Drucker, marketing aims to sell
 Necessary
 Unnecessary
 Not already available
 None of above
18. Market offerings are offered to
 Create a need or want

 Satisfy a need or want
 Both a and b
 None of above
19. Marketing can be defined as
 Creating value for customers

 Building strong relationships
 Capturing value from customers
 All of above
20. Promotion aims are
 to present information to consumers as well as others

 to increase demand
 to differentiate a product
 all of the options
21. A good can be categorized as tangible or
 raw materials
 commodities
 intangible
 services

22. The step which is not related to product life cycle is
 growth stage
 cash cow stage
 maturity stage
 introduction stage
23. Good at a place which is easy for customers to access is
 product
 price
 promotion
 distribution
24. Intermediaries that buy and resell goods are
 merchants
 sellers
 a&b
 none of these
25. Putting the right good in the right place, at the accurate price, at the right
 market
 customer
 price
 time
26. Allocation of goods takes place by ways of
 place
 promotion
 channels
 All of the options

27. The short run or long run method by which a company settle on the price and
output rank that returns the maximum profit is
 product enhancement
 short run pricing
 profit
 profit maximization
28. Four P's was initially expressed by
 E J McCarthy
 Kotler
 Rob Gray
 Mishkin
29. Something widely offered in the open market is
 commodity
 product
 raw materials
 a&b
30. In retailing, goods known as
 merchandise
 manufacturing
 a&b
 raw materials
31. 4 P's are sometime called as the
 product life cycle

 parallel pricing
 price discrimination
 marketing mix

32. Informal statement about the good by average individuals, contented
consumers or people particularly engaged to build word of mouth force is
 product
 advertising
 word-of-mouth promotion
 all of the options
33. The quantity of money that a firm receives from its usual buy and sell
activities is
 revenue
 cost
 price
 a&b
34. one of the five features of the promotional mix is
 promotion
 sales promotion
 place
 product
35. A thing that persuade what a customer demands is
 product
 price
 place
 promotion
36. _____ is the development of original products, product improvements,

product modifications, and new brands through the firm’s own R&D efforts.
 Idea generation
 Concept testing
 Test marketing
 New product development

37. What is the first stage of the consumer decision process?
 Information search
 Problem recognition
 Alternative evaluation
 Purchase
 Post purchase behavior
38. Blake doesn't much care about cars but is engaging in a substantial amount
of information search about cars since he is about to buy a new car. In terms of
involvement, Blake is _____.
 High in product involvement; low in purchase involvement

 High in value-expressive involvement; low in product involvement
 High in product involvement; high in purchase involvement
 Low in product involvement; low in purchase involvement
 Low in product involvement; high in purchase involvement
40. Very high levels of purchase involvement tend to produce _____.
 Extended decision making

 Nominal decision making
 Affective decision making
 Limited decision making
41. Emma noticed that she was almost out of gas, so she pulled into the nearest
gas station and filled up her tank. Emma's decision on which gas to purchase is
characterized by _____.
 A high level of cognitive processing

 A low level of purchase involvement
 A high level of affective processing

42. Which type of consumer decision making only includes the stages of problem
recognition, limited internal information search, purchase, and limited post
purchase behavior?

 Normal decision making
 Simple decision making
43. Which type of consumer decision making does NOT include alternative
evaluation?
 Routine decision making

44. Which type of consumer decision making includes only a limited internal
information search and no external search for information?

45. Which type of consumer decision making includes the evaluation of only a
few attributes, simple decision rules, and few alternatives?


46. Which type of consumer decision making involves the evaluation of many
attributes and alternatives and employs complex decision rules?

47. Which type of decision making process in effect involves no decision per se?

 Automatic decision making
 Default decision making
48. Nominal decision making is sometimes referred to as _____.
 Habitual decision making

 Automatic decision making
 Default decision making
49. A completely nominal decision does not even include consideration of _____.
 Information
 The “do not purchase” alternative
 Purchase evaluation
50. Nominal decisions can be broken into which two distinct categories?
 Brand loyal decisions and repeat purchase decisions

 Primary decisions and secondary decisions
 High involvement decisions and low involvement decisions
 Expensive decisions and inexpensive decisions
 First purchase decisions and repeat purchase decisions

51. Which type of nominal decision is characterized by a fairly high degree of
product involvement but a low degree of purchase involvement?
 Routine decision
 Inexpensive decision
 Primary decision
 Brand loyal decision
 Low visibility decision
52. Brad was out of soft drinks in his dorm room, so he went to the store and
purchased Coke. This is the brand he always buys, and he would not even
consider purchasing another brand. Which type of nominal decision does this
illustrate?
 Repeat purchase decision
 Primary decision
 Brand loyal decision
 Low visibility decision
53. Which type of nominal decision is characterized by a consumer believing that

all brands within a given product category are about the same and not attaching
much importance to the product category or purchase?
 Secondary decision
 Inconsequential decision
 Indifferent decision
54. Rita is doing her family's grocery shopping and purchases ice cream. She's
purchased Blue Bell ice cream before and purchases it again. She's not
committed to this brand; it's just that she and her family like it. Which type of
nominal decision is this?
 Inconsequential decision
 Indifferent decision
 Automatic decision
 Secondary decision

55. Which type of decision making involves internal and external search, few
alternatives, simple decision rules on a few attributes, and little post purchase
evaluation?

 Partial decision making
56. Which type of decision making covers the middle ground between nominal
and extended decision making?

 Partial decision making
 Mid-range decision making
 Modified decision making
 Internal decision making
MCQs Part 2
1. Good marketing is no accident, but a result of careful planning and ________.
 Execution
 Selling
 Strategies
 Research
2. Marketing management is ________.
 Managing the marketing process

 Monitoring the profitability of the company’s products and services
 The art and science of choosing target markets and getting, keeping, and
growing customers
 Through creating, delivering, and communicating superior customer value
 Developing marketing strategies to move the company forward

3. Chimney Sweeps employs people to clean fireplaces and chimneys in homes
and apartments. The firm is primarily the marketer of which one of the following?
 An image
 A service
 A good
 An idea
4. Marketers often use the term ________ to cover various groupings of

customers.
 People
 Buying power
 Demographic segment
 Market
5. The ________ concept holds that consumers and businesses, if left alone, will
ordinarily not Buy enough of the organization’s products.
 Production
 Selling
 Marketing
 Holistic marketing
6. Which of the following would be the best illustration of a subculture?
 A religion.
 A group of close friends.
 Your university.
 Your occupation.
7. The buying process starts when the buyer recognizes a _________.
 Product
 An advertisement for the product
 A salesperson from a previous visit
 Problem or need

8. If actual performance exceeds the expected performance of the product, Then
customer is
___________________
 Satisfied
 Dissatisfied
 Delighted
 Neutral
9. Bread and milk are which kind of products?
 Specialty Products
 Convenience products
 Shopping products
 Unsought products
10. Parents buy toys for their children act as _______________ in the buying
process.
 Decider
 Buyer
 Maintainer
11. If a firm is practicing ____________________, the firm is training and

effectively motivating its customer-contact employees and all of the supporting
service people to work as a team to provide customer satisfaction.
 Double-up marketing
 Interactive marketing
 Service marketing
 Internal marketing
12. A cluster of complementary goods and services across diverse set of

industries is called as
_____________
 Market place
 Meta market
 Market space
 Resource Market

13. Adding new features to a product is advocated by which of the approaches?
 Product Approach
 Production Approach
 Marketing Approach
 Selling Approach
14. One of the key tasks of marketers is ____________ and to create consumer
perceptions that the product is worth purchasing.
 To make products easily visible and available

 To promote sales of products
 To differentiate their products from those of competitors
 To do marketing surveys
15. What is the last stage of the consumer decision process?
 Alternative evaluation
 Purchase
16. ________ markets are made up of members of the distribution chain.
 Consumer
 Business-to-business (industrial)
 Channel
 Institutional
17. Which of the following is considered a “key player” in the marketing industry?
 Marketer
 Suppliers or vendors
 Distributors or retailers

18. Marketing Mix is the most visible part of the marketing strategy of an
organization.
 True
 False
19. Businesses spend most of their advertising rupees on business-to-business

markets.
 True
 False
20. A transaction in which the organization is making an initial purchase of an

item to be used to perform a new job refers to which of the following purchases?
 Straight re buy purchase

 Delayed purchase
 New-task purchase
 Modified re buy purchase
21.________ markets include a wide variety of profit and nonprofit organizations,

such as hospitals, government agencies, and schools, which provide goods and
services for the benefit of society.
 Consumer
 Business-to-business (Industrial)
 Reseller
 Institutional
22. Which of the following is NOT considered a type of reseller?
 Wholesaler
 Retailer
 Manufacturer
 Distributor

23. The promotion “P” of marketing is also known as ________.
 Product Differentiation
 Distribution
 Cost
 Marketing Communication
24. When a company distributes its products through a channel structure that
includes one or more resellers, this is known as ________.
 Indirect marketing
 Direct marketing
 Multi-level marketing
 Integrated marketing
25. In marketing theory, every contribution from the supply chain adds ________
to the product.
 Value
 Costs
 Convenience
 Ingredients
26. Institutional markets consist of people who buy products and services for
personal use.
 True
 False
27. Listing alternatives that will solve the problem at hand and determining the
characteristics of each occurs during which stage of the final consumer’s
decision process?
 Purchase
 Evaluation of alternatives
 Post purchase

28. The act of trading a desired product or service to receive something of value
in return is known as which key concept in marketing?
 Product
 Exchange
 Production
 Customer
29. The most basic level of a product is called the:
 Core product.
 Central product.
 Fundamental product.
 Augmented product.
30. Anything that can be offered to a market for attention, acquisition, use, or
consumption that might satisfy a want or need is called a(n):
 Idea.
 Demand.
 Product.
 Service.
31. In ________ consumers may share a strong need that cannot be satisfied by
an existing product.
 Negative demand
 Latent demand
 Declining demand
 Irregular demand
32. Marketing is both an “art” and a “science” there is constant tension between
the formulated side of marketing and the ________ side.
 Creative
 Selling
 Management
 behavior

33. Mr. Lopez buys goods and services for use in the production of products that
are sold and supplied to others. Mr. Lopez is involved in ________.
 Consumer buying behavior

 Post-purchase dissonance
 Retail buyer behavior
 Business buyer behavior
34. The four unique elements to services include:
 Independence, intangibility, inventory, and inception

 Independence, increase, inventory, and intangibility
 Intangibility, inconsistency, inseparability, and inventory
 Intangibility, independence, inseparability, and inventory
35. Convenience products usually have intensive distribution because sales of

these products tend to have a direct relationship to availability.
 True
 False
36. The ________ holds that the organization’s task is to determine the needs,
wants, and interests of target markets and to deliver the desired satisfactions
more effectively and efficiently than competitors in a way that preserves or
enhances the consumer’s and the society’s wellbeing.
 Customer-centered business
 Focused business model
 Societal marketing concept
 Ethically responsible marketing
37. A change in an individual's behavior prompted by information and experience

refers to which one of the following concept?
 Learning
 Role selection
 Perception
 Motivation

38. Holistic marketers achieve profitable growth by expanding customer share,
________, and capturing customer lifetime value.
 Undermining competitive competencies

 Building customer loyalty
 Milking the market for product desires
 Renewing a customer base
39. ________ pricing is the approach of setting a low initial price in order to
attract a large number of buyers quickly and win a large market share.
 Market-skimming
 Value-based
 Market-penetration
 Leader
40. While buying milk which kind of behavior is displayed by a person?
 Extensive problem solving behavior

 Reutilized buying behavior
 Variety seeking behavior
41.________ markets include a wide variety of profit and nonprofit organizations,

such as hospitals, government agencies, and schools, which provide goods and
services for the benefit of
 Society.
 Consumer
 Business-to-business (Industrial)
 Reseller
 Institutional
42. Which of the following is NOT considered a type of reseller?
 Wholesaler
 Retailer
 Manufacturer
 Distributor

43. The promotion “P” of marketing is also known as ________.
 Distribution
 Cost
 Marketing Communication
44. When a company distributes its products through a channel structure that
includes one or More resellers, this is known as ________.
 Indirect marketing
 Direct marketing
 Multi-level marketing
 Integrated marketing
45. In marketing theory, every contribution from the supply chain adds ________
to the product.
 Value
 Costs
 Convenience
 Ingredients
46. Institutional markets consist of people who buy products and services for
personal use.
 True
 False
47. Listing alternatives that will solve the problem at hand and determining the
characteristics of each occurs during which stage of the final consumer’s
decision process?
 Purchase
 Evaluation of alternatives
 Post purchase

48. The act of trading a desired product or service to receive something of value
in return is known as which key concept in marketing?
 Product
 Exchange
 Production
 Customer
49. The most basic level of a product is called the:
 Core product.
 Central product.
 Fundamental product.
 Augmented product.
50. Anything that can be offered to a market for attention, acquisition, use, or
consumption that might satisfy a want or need is called a(n):
 Idea.
 Demand.
 Product.
 Service.
51. In ________ consumers may share a strong need that cannot be satisfied by
an existing product.
 Negative demand
 Latent demand
 Declining demand
 Irregular demand
52. Marketing is both an “art” and a “science” there is constant tension between
the formulated side of marketing and the ________ side.
 Creative
 Selling
 Management
 behavior

53. Mr. Lopez buys goods and services for use in the production of products that
are sold and supplied to others. Mr. Lopez is involved in ________.
 Consumer buying behavior

 Post-purchase dissonance
 Retail buyer behavior
 Business buyer behavior
54. The four unique elements to services include:
 Independence, intangibility, inventory, and inception

 Independence, increase, inventory, and intangibility
 Intangibility, inconsistency, inseparability, and inventory
 Intangibility, independence, inseparability, and inventory
55. Convenience products usually have intensive distribution because sales of

these products tend to have a direct relationship to availability.
 True
 False
56. The ________ holds that the organization’s task is to determine the needs,
wants, and interests of target markets and to deliver the desired satisfactions
more effectively and efficiently than competitors in a way that preserves or
enhances the consumer’s and the society’s wellbeing.
 Customer-centered business
 Focused business model
 Societal marketing concept
 Ethically responsible marketing
57. A change in an individual's behavior prompted by information and experience

refers to which one of the following concept?
 Learning
 Role selection
 Perception
 Motivation

58. Holistic marketers achieve profitable growth by expanding customer share,
________, and capturing customer lifetime value.
 Undermining competitive competencies

 Building customer loyalty
 Milking the market for product desires
 Renewing a customer base
59. ________ pricing is the approach of setting a low initial price in order to
attract a large number of buyers quickly and win a large market share.
 Market-skimming
 Value-based
 Market-penetration
 Leader
60. While buying milk which kind of behavior is displayed by a person?
 Extensive problem solving behavior

 Reutilized buying behavior
 Variety seeking behavior
61. Whether to sell via intermediaries or directly to consumers, how many outlets
to sell through, and whether to control or cooperate with other channel members
are examples of decisions marketers must make about
 Promotion
 Price
 Distribution
 Product
62. The extended Ps of service marketing mix is:
 People, Product, Place

 Price Physical Evidence, Promotion
 Physical Environment, Process, People
 Product, Process, Physical Environment

63. A social and managerial process by which individuals and organizations
obtain what they need and want through value creation refers to which one of the
following concepts?
 Selling
 Advertising
 Barter
 Marketing
64. What is the basic property of a service which makes it different from a
product?
 Shape
 Size
 Very expensive
 Intangibility
65. Which one of the following phrases reflects the marketing concept?
 The supplier is a king in the market

 Marketing should be viewed as hunting not gardening
 This is what I make, won’t you please buy it?
 This is what I want, won’t you please make it?
66. The task of any business is to deliver ________ at a profit.
 Customer needs
 Customer value
 Products and services
 Improved quality
67. The solution to price competition is to develop a differentiated:
 Product, price, and promotion.

 Offer, delivery, and image.
 Package and label.
 International Web site.

68.Red Cross blood donations are considered to be specialty products and,
therefore, have a specialty offer to the consumer.
 True
 False
69. You purchase cleaning supplies for your custodial help regularly. It is
showing which Buying situation?
 Modified re buy
 Straight re buy
 Modified straight re buy
 Consumer buy
70. Internal marketing is marketing by a service firm to train and effectively

motivate its customer-contact employees and all the supporting service people to
work as a team to provide customer satisfaction.
 True
 False
71. Customer’s evaluation of the difference between all the benefits and all the
costs of a marketing offer relative to those of competing offers refers to which of
the following options?
 Customer perceived value

 Marketing myopia
 Customer relationship management
 Customer satisfaction
72. Buying goods and services for further processing or for use in the production
process refers to which of the following markets?
 Consumer markets
 Government markets
 Business markets
 International markets

73. The packaging concept states what the package should be or do for the
product.
 True
 False
74. Marketing managers should adapt the marketing mix to ___________________

and constantly monitor value changes and differences in both domestic and
global markets.
 Sales strategies
 Marketing concepts
 Cultural values
 Brand images
75. Resellers may actually take ownership of the product and participate in the
marketing, including the advertising.
 True
 False
76. The materials and ingredients used in producing the product are obtained
from other companies who are referred to as distributors.
 True
 False
77. The ________ refers to the various companies that are involved in moving a
product from its manufacturer into the hands of its buyer.
 Distribution chain
 Network chain
 Supply chain
 Promotion network
78. ________ is the study of how individuals, groups, and organizations select,
buy, use, and dispose of goods, services, ideas, or experiences to satisfy their
needs and wants.
 Target marketing
 Psychographic segmentation
 Consumer behavior

79. A person’s ________ consist(s) of all the groups that have a direct (face-to-
face) or indirect influence on his/her attitudes or behavior.
 Culture
 Subculture
 Psychographics
 Reference groups
 Demographics
80. Product choice is greatly affected by economic circumstances. All of the

following would be among those circumstances EXCEPT ________.
 Spendable income
 Savings and assets
 Debts
 Occupation
 Borrowing power
81. ________ is a set of distinguishing human psychological traits that lead to

relatively consistent and enduring responses to environmental stimuli.
 Image
 Personality
 Beliefs
 Heredity
 Culture
82. ________ portrays the “whole person” interacting with his or her environment.
 Attitude
 Reference group
 Lifestyle
 Culture
 Subculture

83. A ________ when it is aroused to a sufficient level of intensity.
 Need becomes a motive

 Motive becomes a need
 Desire becomes a reality
 Unfulfilled demand becomes a crisis
 Personal demand exceeds the ability to rationally reject
84. The five-stage model of the consumer buying process includes all of the
following stages EXCEPT ________.
 Social interaction
 Purchase decision
85. If performance meets consumer expectations, the consumer is ________.
 Delighted
 Satisfied
 Disappointed
 Surprised.
86. The primary purpose of marketing activities is to facilitate and encourage

exchange transactions with potential customers.
 True
 False
87. Merchant wholesalers sell goods and services directly to final consumers for
their personal, no business use.
 True
 False

88. A service can be defined as “any activity or benefit that one party can offer
another that is essentially intangible and that does not result in the ownership of
anything.”
 True
 False
89. The intangible nature of many services can create unique challenges for
marketers.
 True
 False
90. Auction sites, such as eBay, QXL are examples of Consumer-to-Consumer

(C2C) channels.
 True
 False
91. Product planners need to think about products and services on three levels.
Each level adds more customer value. Which one of the following is the most
basic level that addresses the question, “What is the buyer really buying?”
 Actual product
 Augmented product
 Core benefit
 Co-branding
92. The mental act, condition or habit of placing trust or confidence in another
shows which of the following options?
 Motive
 Belief
 Behavior
 Attitude

93. How do consumers respond to various marketing efforts the company might
use? What is a starting point of a buyer’s behavior?
 Belief
 Subculture
 Post purchase feeling
 Stimulus-response Model
94. Which one of the following factor relates to family that influences consumer
behavior?
 Cultural
 Social
 Personal
 Business
95. Unique psychological characteristics that lead to relatively consistent and

lasting responses to one’s own environment refers to which one of the following?
 Belief
 Culture
 Personality
 Self-awareness
96. Which one of the following statements by a company chairman BEST reflects
the marketing concept?
 We have organized our business to satisfy the customer needs

 We believe that marketing department must organize to sell what we produce
 We try to produce only high quality, technically efficient products
 We try to encourage company growth in the market
97. Which one of the following is a key to build lasting relationships with
consumers?
 Price of the product

 Need recognition
 Quality of product

98. The factors such as the buyer’s age, life-cycle stage, occupation, economic
situation, lifestyle, personality and self-concept that influences buyer’s decisions
refers to which one of the following characteristic?
 Personal characteristics
 Psychological characteristics
 Behavioral characteristics
 Demographical characteristics
99. Companies selling mass consumer goods and services such as soft drinks,
cosmetics, air travel, and athletic shoes and equipment spend a great deal of time
trying to establish a superior brand image in markets called ________.
 Global markets
 Non-profit and governmental markets
 Service markets
100. Four competing philosophies strongly influence the role of marketing and
marketing activities within an organization. Which if the following is not a
component of market orientation?
 Customer orientation.
 Profitability orientation.
 Marketing orientation.
 Competitor orientation.
101. The ________ is practiced most aggressively with unsought goods, goods
that buyers normally do not think of buying, such as insurance, encyclopaedias,
and funeral plots.
 Marketing concept
 Selling concept
 Production concept
 Product concept
 Holistic marketing concept

102. The ________ concept holds that consumers will favor those products that
offer the most quality, performance, or innovative features.
 Product
 Marketing
 Production
 Selling
 Holistic marketing
103. ________ marketing has the aim of building mutually satisfying long-term
relations with key parties such as customers, suppliers, distributors, and other
marketing partners in order to earn and retain their business.
 Holistic
 Demand-based
 Direct
 Relationship
 Synthetic
104. One traditional depiction of marketing activities is in terms of the marketing

mix or four Ps. The four Ps are characterized as being ________.
 Product, positioning, place, and price

 Product, production, price, and place
 Promotion, place, positioning, and price
 Place, promotion, production, and positioning
 Product, price, promotion, and place
105. David Packard of Hewlett-Packard once said, “Marketing is far too important
to leave to ________.”
 The advertising boys

 Uninformed managers
 Novices
 The CEO
 The marketing department

106. The traditional view of marketing is that the firm makes something and then
________ it.
 Markets
 Sells
 Distributes
 Prices
 Services
107. __________ is the single factor that best indicates social class.
 Time
 Money
 Occupation
 Fashion
108. Marketing strategies are often designed to influence _______________ and

lead to profitable exchanges.
 Consumer decision making

 Sales strategies
 Advertising strategies
 Export strategies
109. __________ refers to the information a consumer has stored in their memory
about a
 Product or service.
 Cognitive dissonance
 Product knowledge
 Product research
 Marketing research
110. When consumers are seeking low-involvement products, they are unlikely to
engage in extensive search, so _________________ is important.
 Order processing
 Order booking
 Ready availability
 Information about warranty

111. ___________________ constitutes moderate consumer behavior, but still
involves time and effort searching for and comparing alternatives.

 Need recognition
 Post purchase evaluation
112. Experimental sources of information for consumers refer to ____________.
 Advertising, marketing, selling, and profit making

 Handling, examining, and trying the product while shopping
 Buying after a demonstration
 Buying the product directly from a manufacturer
113. Which of the following is NOT one of the four philosophies of marketing?
 Production orientation
 Societal marketing orientation
 Sales orientation
 Promotion orientation
114. Of the four competing philosophies, the Furniture Industry is an example of

what kind of orientation:
 Sales Orientation
 Societal Marketing Orientation
 Marketing Orientation
 Production Orientation
115. Marketing is defined by the American Marketing Association as the activity,

set of institutions, and processes for ______, ________, ________, and
__________ offerings that have value for customers, clients, partners, and society
at large.
 Making, Arranging, Maintaining and Selling

 Creating, Communicating, Delivering, and Exchanging
 Creating, Advertising, Selling, and Transferring
 Performing, Displaying, Offering, and Exchanging

116. The focus of marketing today is _______.
 Value and Satisfaction

 Quality and Long Term Relationships
 All of the Above
 None of the Above
117. Which of the following firms emphasizes on product’s benefits to the

customers rather product attributes?
 Product oriented
 Market oriented
 Sales oriented
 Production oriented
118. Products that are usually purchased due to adversity and high promotional
back up rather than desire are called:
 Sought goods
 Unique goods
 Unsought goods
 Preferred goods
119. Which product is MOST likely to be purchased through routine decision

making?
 Television set
 Soft drink
 Shirt
 Car
120. Luxury products, such as Rolex watches, are also known as:
 Shopping product
 Convenience product
 Emergency product
 Specialty product

121. Which of the following is NOT included as a basic idea in the definition of
marketing concepts?
 Total company effort

 Profit
 Productivity
122. Which of the following is the most recent stage of marketing evolution?
 Marketing department era

 Production era
 Sales era
 Marketing company era
123. Which of the following is NOT included as a basic idea in the definition of
marketing concepts?
 Total company effort

 Profit
 Productivity
124._______________________ is defined as the difference between the benefits a

customer sees from a market offering and the costs of obtaining those benefits.
 Customer value
 Satisfaction scale
 Profit margin
 Competitive benefit
125. Which of the following is NOT included in the marketing management

process used by the marketing manager to achieve its objectives?
 Planning marketing activities

 Raising funds to finance the marketing projects
 Controlling marketing plans
 Directing implementation of the marketing plans

126. A channel of distribution is any series of firms (or individuals) who
participate in the flow of products to final user or customer.
 True
 False.
127. ____________ is defined as communication with large numbers of customers

at the same time.
 Personal selling
 Sales promotion
 Mass selling
128. The marketing concept applies to production firms, but not to service
industries.
 True
 False
129. In a ___________________orientation, the role of marketing research is to

determine customer needs and how well the company is satisfying them.
 Marketing
 Production
 Both of the above
130. The marketing concept means that an organization aims the majority of its
efforts at Satisfying customers, at a profit.
 True
 False

131. When a manager focuses on making whatever products are easy to produce,
and then trying to sell them, that manager has a ___________________
orientation.
 Marketing
 Production
 Sales
 Profit
132. Which of the following is NOT consistent with a manager having a marketing
orientation?
 Inventory levels are set with customer requirements and costs in mind
 Customer relationship focuses on customer satisfaction before and after sale,
leading to a
 Profitable long-run relationship
 Focus of advertising is on product features and how products are made
 Packaging is designed for customer convenience and as a selling tool
133. Often, the best way to improve customer value, and beat the competition, is
to be first to satisfy a need that others have not even considered.
 True
 False
134. It is more costly to retain current customers by satisfying their needs, than
to get new customers by taking them away from a competitor.
 True
 False
135. In addition to businesses, the marketing concept is also applicable to

_____________.
 Government agencies
 Religious groups
 Fine arts organizations

136. The controllable variables a company puts together to satisfy a target group
is called the ____________________.
 Marketing strategy
 Marketing mix
 Strategic planning
137. In order for exchange to occur:
 A complex societal system must be involved.

 Organized marketing activities must also occur.
 A profit-oriented organization must be involved.
 Each party must have something of value to the other party.
138. Four competing philosophies strongly influence the role of marketing and
marketing activities within an organization. Which if the following is not a
component of market orientation?
 Customer orientation.
 Profitability orientation.
 Marketing orientation.
 Competitor orientation.
139. A market orientation recognizes that:
 Price is the most important variable for customers.

 Market intelligence relating to current and future customer needs is
important.
 Selling and marketing are essentially the same thing.
 Sales depend predominantly on an aggressive sales force.
140. When customer expectations regarding product quality, service quality, and
value-based price are met or exceeded, _____ is created.
 Planning excellence
 A quality rift
 A value line

141. A critical marketing perspective is the process of determining:
 The value of a product, person, or idea.

 How places compete with each other.
 The worth and impact of marketing activities.
 Which type of promotional strategy works best.
142. The way in which the product is delivered to meet the customers' needs
refers to:
 New product concepts and improvements.

 Selling.
 Advertising and promotion activities.
 Place or distribution activities.
143. The term 'marketing mix' describes:
 A composite analysis of all environmental factors inside and outside the firm.
 A series of business decisions that aid in selling a product.
 The relationship between a firm's marketing strengths and its business
weaknesses.
 A blending of strategic elements to satisfy specific target markets.
144. Newsletters, catalogues, and invitations to organisation-sponsored events

are most closely
 Associated with the marketing mix activity of:

 Pricing
 Distribution
 Product development
 Promotion
145. Which of the following is not an element of the marketing mix?
 Distribution.
 Product.
 Target market.
 Pricing.

146. In relationship marketing firms focus on __________ relationships with
__________.
 Short-term; customers and suppliers

 Long-term; customers and suppliers
 Short-term; customers
 Long-term; customers
147. A further 3Ps are incorporated into the marketing mix:
 Physical evidence, process and price.

 Process people and promotion.
 Physical evidence, people and production.
 Physical evidence, process and people.
148. A marketing philosophy summarized by the phrase 'a stronger focus on

social and ethical concerns in marketing' is characteristic of the _________
period.
 Production
 Sales
 Marketing
 Societal marketing
149. Which of the following statements is correct?
 Marketing is the term used to refer only to the sales function within a firm.
 Marketing managers don't usually get involved in production or distribution
decisions.
 Marketing is an activity that considers only the needs of the organization; not the
needs of society as a whole.
 Marketing is the activity, set of institutions, and processes for creating,
communicating delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large.

150. The term marketing refers to:
 New product concepts and improvements.

 Advertising and promotion activities.
 A philosophy that stresses customer value and satisfaction.
 Planning sales campaigns.
151. Which of the following involves designing and manufacturing the container
or wrapper for a product?
 Labelling
 Packaging
 Branding
 Product line
152. The basic role of promotion is _____.
 Information
 Manipulation
 Communication
 Interpretation
153. If the aim of the promotion to introduce a new consumer product is to

achieve high awareness levels, the firm will most likely make heavy use of
_______ in the promotional mix.
 Advertising
 Sales promotion
 Publicity
154. A consumer contest is an example of _____.
 Sales promotion
 Advertising
 Indirect selling

155. Advertising appropriations are largest for which type of product?
 Industrial products
 Convenience goods
 High-priced products
 Specialty goods
156. A television advertisement showing the safety features of the Volvo 240 DL
would be best classified as which of the following?
 Product advertising
 Pioneer advertising
 Defensive advertising
 Societal marketing
157. Need becomes ________ when they are directed towards a specific object.
 Actual need
 Want
 Satisfaction
 Demand
158. Which of the following BEST describes the consumer’s preference for
products that are widely available to them?
 Selling concept
 Product concept
159. Buying and selling of mass consumer goods and services comes under
which of the following markets?
 Global markets
 Government markets

160. Which one of the following BEST describes the human need?
 Food
 French-fries
 Burger
 Pizza
161. Which of the following firms emphasis on product’s benefits to the

customers rather than on
 Product attributes.
 Product oriented
 Market oriented
 Sales oriented
 Production oriented
162. All of the following are the examples of unsought goods EXCEPT:
 Course books
 Encyclopaedia
 Funeral plots
 Insurance policy
 Unsought Goods
163. While considering the place for a product which of the following is important
for customer.
 Communication
 Convenience
 Cost
 Solution
164. Market –oriented firms focus on:
 Retailers
 Distributors
 Customers
 Wholesalers

165. Price is the only element in the marketing mix that produces:
 Fixed cost
 Expense
 Variable cost
 Revenue
166. Identify the products that the customer usually buys frequently and with a
minimum of comparison and buying effort.
 Specialty
 Convenience
 Unsought
 Augmented
167. Which of the following is NOT included in product decisions?
 Styling
 Brand name
 Warehousing
 Packaging
168. Which of the following takes place at retailer’s end?
 Promotion
 Placing
 Pricing
 Exchange
169. Aggressive selling is a characteristic of which of the following concept of

marketing?
 Select correct option:

 Selling concept
 Product concept

170. Which of the following is a name, term, sign, symbol, design, or a
combination of these, that identifies that maker or seller of a product or service?
 Label
 Co-brand
 Brand
 Product
171. The consumer’s estimate of the product’s overall capacity to satisfy his or
her needs is called:
 Product Cost
 Product Value
 Product need
 Product Satisfaction
172. According to the text, a product is
 Everything the customer receives in an exchange.

 The physical object the customer receives in an exchange.
 The service that is rendered to a customer.
 The idea that the customer receives in an exchange.
173. An example of a convenience consumer product is stereo equipment.
 Petrol.
 A motorcycle.
 A bicycle.
 Athletic shoes.
174. Which one of the following is NOT an industrial product?
 Oil to be refined into fuel for homes

 Transistors used as components for portable radios
 Paper, pens, and glue used in bank branch offices
 Computer software to help people complete personal tax forms

175. Sai Nath called several airlines to compare rates and chose a flight on British
Midland as it had a better reputation for service and competitive prices. The
airline ticket is an example of which type of product?
 Convenience
 Shopping
 Specialty
 Unsought
176. Products that are relatively inexpensive and are purchased frequently with
minimal effort can be classified as ___________ products.
 Shopping
 Convenience
 Industrial
 Specialty
 Unsought
177. Large tools and machines used in a production process for a considerable
length of time are classified as
 Major equipment.
 Accessory equipment.
 Component parts.
 Raw materials.
 Consumable supplies.
178. Items that are purchased routinely, do not become part of the final physical
product, and are treated like expense items rather than capital goods are called
 Raw materials.
 Major equipment.
 Accessory equipment.
 Process materials.

179. Products that are used directly in the production of a final product but are
not easily identifiable are categorised as
 Accessory products.
 Consumable supplies.
 Assembly components.
 Process materials.
180. Industrial products are
 Purchased for personal consumption.

 Frequently purchased for both their functional aspects and their psychological
rewards.
 Traditionally classified according to their characteristics and intended
uses.
 Not purchased by non-business organisations.
181. A company designs the product with little or no input from customers, the
company is practicing which of the following concept?
 Product concept
 Selling concept
182. Which of the following 4Ps of marketing mix involves decisions regarding
channels coverage, assortments, locations, inventories or transports?
 Product
 Price
 Place
 Promotion
183. Which of the following is NOT a part of marketing communication mix?
 Telemarketing
 Public relations
 Sales promotion
 Advertising

184. A dissonance-reducing buying behavior is designed to probe consumers’
hidden, subconscious motivations.
 True
 False
185. Consumer buying behavior refers to the buying behavior of businesses.
 True
 False
186. A fundamental part of the distribution function is to get the product:
 To the right place at the right time

 Launched into new markets
 To intermediaries
 To market to avoid channel conflict
187. The _____ identifies the product or brand.
 Container
 Label
 Advertisement
 Warranty
188. A(n) _____ product exceeds customer expectations.
 Strategic
 Superior
 Augmented
 Anticipated

189. Which of the following are products and services bought by final consumers
for personal consumption? These include convenience products, shopping
products, specialty products, and unsought products.
 Material and parts

 Consumer products
 Industrial products
 Capital items
190. The skimming, penetration, bargaining and bundling are decided in the
______________ of the Marketing Mix strategy.
 Price Decisions
 Place Decisions
 Product Decisions
 Promotion Decisions
191. Low Consumer involvement in purchase and little significant brand

difference comes in which types of buying behaviors.
 Complex buying behavior

 Dissonance-reducing buying behavior
 Habitual buying behaviors
 Variety-seeking buying behaviors
192. Distribution of product to get it in the marks refers to which of the following
activities?
 Selling Activities
 Advertising activities
 Promotion Activities
 Place or distribution activities
193. How many stages are involved in the consumer buying / adoption process?
 Six
 Seven
 Three
 Five

194. Which one of the following factor relates to family that influences consumer
behavior?
 Cultural
 Social
 Personal
 Business
195. “Buy it now” refers to which one of the following options?
 Advertising
 Sales promotion
 Publicity
196. At least how many parties should be included in “Exchange”?
 Two
 Three
 Four
 Five
197. The buyer decision process consists of five stages. Which of the following is
NOT one of these stages?
 Evaluation of Alternatives
 Variety-seeking buying behavior
198. You are planning to install a steel manufacturing plant in your city. For that
purpose you want to have a supplier who supplies you the steel in raw form for
manufacturing. Here supplier supplies you which of the following form of
industrial product?
 Material and parts

 Capital items
 Supplies and services
 None of the given options

199. “How are you telling consumers in your target group about your product”
This question belongs to which marketing concept?
 Product
 Price
 Place
 Promotion
200. A transaction in which the organization is making an initial purchase of an

item to be used to perform a new job refers to which of the following purchases?
 Straight re buy purchase

 Delayed purchase
 New-task purchase
 Modified re buy purchase

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Prof.

MBA First Year: Important MCQs

Prof. Rohan Dahivale

1. Which of the following jobs check accounting in ledgers and financial

2. The process of accounting is needed to

3. Which of the following describes the practical framework of bookkeeping?

 Classifying, recording and summarizing

Prof. Rohan Dahivale

6. Accountants use generally Accepted Accounting Principles (GAAP) to make

7. One of the detailed rules used to record business transaction is

8. The diagram below refers to item 8.

Prof. Rohan Dahivale

 Journalizing, final accounts, posting to the ledger and trial balance

10. Dividends are paid by

11. Which of the following companies has to pay corporation tax?

12. Which of the following companies has unlimited liability?

 Sole trading company

Prof. Rohan Dahivale

15. Which of the following are assets?

 Dr. Maintenance of vehicle expense, Cr. Toy Automotive Company

Prof. Rohan Dahivale

 Statement of cash flows

20. Expense is recorded in the accounting records when:

21. Double entry book-keeping was fathered by:

Prof. Rohan Dahivale

23. The balance sheet equation is best represented by:

 Assets = Liabilities +Owners Equity

24. The accounting information specially prepared to aid managers is called …

26. Journal is called as book of ……….. entry.

Prof. Rohan Dahivale

28. GAAP stands for ……..

 General Accounting and Audit Principles

29. IFRS stands for …..

 International Financial Reporting Standards

30. Match the following

Prof. Rohan Dahivale

 Dual Aspect Concept

32. Drawings are deducted from

33. Which of the following is not an external user of accounting information

35.Which of the following is an accounting equation

 Capital = Asset + Liability

Prof. Rohan Dahivale

 Companies Act 1931

37. Who is owners of company……..

39. Q.6 Book keeping is concerned with ---

 Recording of financial transactions

40. Accounting is concerned with

Prof. Rohan Dahivale

42. Accounting Standards are—

 Basis for selection of accounting policy

43. Consider the following Trial Balance-

44. Unexpired Insurance given in the Trial Balance is recorded in

Prof. Rohan Dahivale

46. Financial accounting provides financial information to all of the following

47. Liabilities are which of the following?

49. In case of Partnership business, liabilities of partners are:

Prof. Rohan Dahivale

51. Management Accounting provide services to management performing----

 All management functions

52. During life time of an entity, accountant produce financial statement at

53. Which of the following is not a conventions of financial accounting?

54. Cost accounting is different from financial accounting in respect of:

Prof. Rohan Dahivale