1. Which pattern reflects a pure executive form of management?

(a) Functional (b) Line (c) Line and Staff (d) Committee Ans. (a) 2. Match the following: A. Increasing cost industry B. Decreasing cost industry C. Constant cost Codes: ABC (a) 1 2 3 (b) 3 2 1 (c) 2 3 1 (d) 2 1 3 Ans. (c) 3. The management of personnel is also called: (a) Staffing (b) Controlling (c) Co-coordinating (d) None of these Ans. (a) 1. Horizontal long run supply curve 2. Positively sloped long run supply curve 3. Negatively sloped long run supply curve industry

4. Assertion (A): High capital gearing leads to greater speculation. . Reason (R): Proportion of equity share capital in relation to the total capital comprising the other securities is small leading to capitalization being highly geared. Codes: (a) Both A and R are true and R is the correct explanation of A. (b) Both A and R are true but R is not a correct explanation of A. (c) A is true but R is false. (d) A is false but R is true. Ans. (d) 5. Techniques of managerial control are useful in: (a) Selection of plant location (b) Identifying appropriate strategy (c) Profit planning (d) Conducting shareho1ders meetings Ans. (c) 6. Opportunity costs are also known as: (a) Spillover costs (b) Money-costs (c) Alternative costs (d) External costs Ans. (d) 7. Assertion (A): The focus of scientific management was narrow. Reason (R): It concentrated on the work done at the lowest level. Codes:

(a) A and R are true and R is the correct explanation of A. (b) A and R are true but R is not the correct explanation of A. (c) A is true but R is false. (d) A is false but R is true. Ans. (a) 8. The Human Relations Theory does not lay emphasis on: A. Principles B. People C. Human motivations D. Informal group function Select the answer from answer from the codes given below: (a) A (b) A and B. (c) A, B and C (d) A, B, C and D Ans. (a) 9. What is consumer market? (a) Buyers (b) Sellers (b) Distributors (d) None of the above Ans. (a) 10. There will be only one regression line in case of two variables if:

(a) r = 0 (b) r = l (c) r = 0.5 (d) None of them Ans. (b) 11. Match the following: A. Various combinations of two commodities that a consumer can purchase B. Various combinations of two commodities that give consumer equal satisfaction C. A set of indifference curves D. Point of agency of a budget line and an indifference curve Codes: ABCD (a) 1 2 4 3 (b) 4 3 2 1 (c) 2 3 4 1 (d) 3 2 1 4 Ans. (d) 12. The area which lies under the demand curve for a given good measures: (a) Marginal utility (b) Total utility 3. Budget Line 4. Consumers equilibrium 2. Indifference curve 1. Indifference map

(c) Disutility (d) Marginal cost of production Ans. (b) 13. The prime cost may be considered as: (a) Variable cost (b) Direct cost (b) Sunk cost (d) Fixed cost Ans. (d) 14. The optimum is the one which is produced: (a) By the optimum firm (b) At the maximum average cost (c) At the minimum average cost (d) At zero marginal cost Ans. (c) 15. Product mix consist: (a) 2 P (b) 6 P (c) 4 P (d) None of these Ans. (c) 16. Greshams law is related to: (a) Consumption and Demand

(b) Supply and Demand (c) Circulation of Money (d) Deficit Financing Ans. (c) 17. SDR is the currency of IMF which is in the form of: (a) Paper currency (b) Gold (c) Silver and gold both (d) Book-keeping entry only Ans. (d) 18. Assertion (A): The investors in the capital market have been showing a decisive shift in favour of fixed income instruments. Reason (R): The debt instruments have active secondary market. Codes: (a) Both A and R are true and R is the correct explanation of A. (b) Both A and R are true but R is not a correct explanation of A. (c) A is true but R is false. (d A is false but R is true. Ans. (c) 19. The first stock exchange was set up in India in: (a) Calcutta (b) Bombay (c) Delhi (d) Madras

Ans. (b) 20. Under perfect competition, a firm will be in equilibrium when its AC is: (a) At a maximum (b) At a minimum (c) Covering only prime costs of production (d) Covering wages and salaries only Ans. (b) 21. The greatest weakness of the informal organizations: (a) Its utter instability (b) Its behaviour can be predicted (c) It does not change (d) All of the above Ans. (a) 22. Which of the following are devices to bring about co-ordination? A. Cabinet Committees B. Union Government C. Zonal Councils D. National Development Council (a) A and B only (b) B only (c) A, B, and D only (d) A, B, C, and D Ans. (d)

23. TQMS major emphasis is on: (a) Product Quality (b) Company Profitability (c) Customer Delight (d) Employees Training Ans. (a) 24. The theory which deals with the comparative statistics and positive equilibrium is called: (a) Macro Economics (b) Modern Economics (c) Micro Economics (d) None of the above Ans. (b) 25. An informal organization is: A. Not written and manualised B. Not portrayed in organizational charts C. A set of work relationship that grow out of the mutual interactions of persons working together over a period of time D. Customary, not enacted Select the correct answer from the codes given below: (a) A only (b) A and B only (c) A, B and C only (d A, B, C and D Ans. (d)

26. When the greater the elasticity of supply the change in the new equilibrium price will: (a) Be higher (b) Be higher than previous price (c) Be lower (d) Be lower than previous price Ans. (c) 27. In the short run, the monopolist: (a) Incurs a loss (b) Breaks down (c) Makes a profit (d) Any of the above Ans. (d) 28. Match the following: A. Responsiveness of demand to change in price B. Responsiveness of demand to change in tastes 1. Income elasticity of demand 2. Price elasticity of demand

C. Responsiveness of demand to change in income 3. Cross elasticity of demand D. Responsiveness of demand to change in price of related goods Codes: ABCD (a) 1 2 3 4 (b) 4 3 1 2 (c) 3 4 2 1 4. Taste elasticity of demand

(d) 2 4 1 3 Ans. (d) 29. A stable equilibrium position is one in which: (a) There are never any departures from the equilibrium position (b) There are only two forces influencing equilibrium (c) Any departure from the equilibrium position calls into play forces which end to restore that position (d) There are endless oscillations Ans. (c) 30. We can separate the income effect from the substitution effect of the price fall of reducing the consumers: (a) Money income sufficiently to keep his real income constant (b) Money income to make his real income higher (c) Money income to make his real income lower (d) None of these Ans. (a) 31. The Law of Diminishing Returns is applied to all fields of production was stated by (a) Walras (b) A. C. Pigou (c) Alfred Marshall (d) David Ricardo Ans. (a) 32. Assertion (A): A manager dealing with trained subordinates can afford to operate on a wide span.

Reason (R): Trained subordinates carry on their functions without very frequent reference to the superior. Codes: (a.) A and R are true and R explains A. (b) A and R are true but R does not explain A. (c) A is true but R is false. (d) A is false but R is true. Ans. (a) 33. Pocus on social environment is related to the: (a) Human Relations (b) Unity of direction (c) Unity of command (d) None of the above Ans. (a) 34. Which of the following are associated with the Scientific Management Movement? 1. Functional-Foremanship 2. Centralization 3. Time and motion study 4. Unity of command Select the correct answer from the codes given below: (a) l and 3 (b) 2 and 4 (c) l, 2 and 3 (d) 2, 3, and 4

Ans. (a) 35. Commercial banks are now permitted to I undertake to the business of: (a) Equipment leasing (b) Mutual funds (c) Factoring (d) All of these Ans. (d) 36. Marketing research data is gathered by: (a) Observation (b) In-depth interviews (c) Controlled experiment (d) All of the above Ans. (d) 37. Who authored book Policy and Management? (a) Gladden (b) Weber (c) Dimock (d) Appleby Ans. (d) 38. If the agreement is silent, an arbitration reference is to appoint: (a) Sole arbitrator (b) Two or more arbitrators (c) Both (a) and (b)

(d) None of the above Ans. (a) 39. Structure variable is synonymous with:: (a) Task (b) Relations (c) Styles (d) Attitude Ans. (a) 40. The Banking Regulation Act, 1949, does not at all apply to: (a) State Bank of India and its subsidiaries (b) Nationalized Banks (c) Foreign Banks having their offices in India (d) Primary agricultural credit societies and co-operative and mortgagee banks Ans. (d) 41. Which of the following is most likely to cause an immediate increase in the stage of the working population? (a) A rise in the average size of families (b) An increase in the birth rate (c) A fall in the death rate of the over 60 years old (d) More favourable tax treatment of the earnings, married women Ans. (d) 42. You are the manager of a firm. Which of the following activities do you initiate first? (a) Planning

(b) Organizing (c) Staffing (d) Directing Ans. (a) 43. The Industrial Finance Corporation, of India came into existence in (a) July, 1948 (b) August, 1968 (c) September, 1951 (d) None of these Ans. (a) 44. A court has power to: (a) Modify the award of an arbitrator with his consent (b) Modify the award subject to the consent of the parties (c) Nullify the arbitration agreement (d) None of these Ans. (d) 45. The three objectives of scientific management are: 1. Standardization of working conditions 2. Standardization of work methods 3. Planning of large daily tasks 4. Maximization of employment Select the correct code from the following: (a) l, 2 and 4

(b) l, 2 and 3 (c) 2, 3 and 4 (d) 1, 3 and 4 Ans. (c) 46. Scientific management addressed itself to the problems of: (a) Bottom part of organization (b) Top management (c) Middle tier of management (d) All of the above Ans. (d) 47. Which of the following is not a typically used procedure to reduce the total number of employees? (a) Lay off (b) Terminations (c) Downturns (d) Early retirement in inducements Ans. (d) 48. You require capital for purchase of fixed assets. What is this capital called : (a) Floating capital (b) Reserve capital (c) Circulating capital (d) Fixed capital Ans. (a) 49. Who is the final authority for deciding the design, form and material of bank notes?

(a) Central Government (b) Reserve Bank of India (c) Indian Banks Association (d) Note Issuing Authority of India Ans. (c) 50. Who is author of The Function of the Executive? (a) Chester Bernard (b) Cart Rogers (c) A. H. Maslow (d) E. Mayo Ans. (a) 1. Data collection terminals gather data for use by the: (a) Inventory subsystem (b) Cost subsystem (c) Production subsystem (d) All of the above Ans. (d) 2. Average inventory level is educed by: (a) Decreasing the vender lead time (b) Increasing the usage rate (c) Decreasing the order quantity (d) Lowering the reorder point Ans. (c) 3. Below are given four different theories: (1) Trait approach (ii) Attitude criterion (iii) Behaviour approach (iv) Situational approach These are identified with: (a) Administrative behaviour (b) Organizational behaviour (c) Leadership index

(d) Administrative approaches Ans. (c) 4. The manager of inventory would most likely be found in the: (a) Finance function (b) Marketing function (c) Manufacturing function (d) Information system function Ans. (c) 5. Focus on Social Environment is related to: (a) Unity of Command (b) Human Relations (c) Unity of Direction (d) Delegation Ans. (b) 6. Section 16 of the Banking Regulation Act, 1949 prohibits a person: (a) To be appointed as director of banking company if he is an undischarged insolvent. (b) To be appointed as director of banking company if he is not of sound financial position. (c) To be appointed as director of more than one banking company. (d) None of these Ans. (c) 7. The funds management subsystem attempts to: (a) Increase cash input (b) Decrease cash output (c) Balance cash inflow with outflow (d) All of the above Ans. (c) 8. The democratic leadership style goes with: (a) Theory X (b) Theory Y (c) Theory Z (d) None of the above Ans. (b) 9. This type of information overlay indicates the key people who can accomplish something because they know the ropes. (a) The decision overlay (b) The power overlay (c) The communication overlay (d) The functional overlay Ans. (b)

10. Delegation of authority results in: (a) Avoiding responsibility (b) Centralization of powers at top level (c) Costliness of decision (d) Enabling the managers to distribute their work load Ans. (d) 11. Taylorism: 1. Viewed man as an adjunct of man. 2. Underestimated the meaning of human motivation. 3. Emphasized only a limited number of physiological variables. 4. Completely neglected the psychological aspects. Select the correct code from the following: (a) (l)+(2) (b) (1)+(2)+(3) (c) (l)+(3)+(4) (d) All of the above Ans. (d) 12. Which of the following markets is associated with short term funds? (a) Money market (b) Capital market (c) Stock market (d) Chamber of commerce Ans. (c) 13. In India, the system of decimal coinage introduced on: (a) 15th August 1947 (b) 26th January 1950 (c) 1st April 1957 (d) None of these Ans. (a) 14. The most structured marketing problems are likely to be those dealing with: (a) Product (b) Promotion (c) Place (d) Price Ans. (b) 15. Economic analysis in the content of equity stock valuation is concerned with: (a) Study of fiscal policies (b) Study of monsoons (c) Study of economic policies of the government (d) All of the above Ans. (d)

16. One who does too much work is called (a) A squealer (b) A rate buster (b) A chiseller (d) None of the above Ans. (b) 17. Companies are required to hold a meeting every year. What is the meeting called? (a) Extra ordinary meeting (b) Statutory meeting (c) Committee meeting . (d) Annual general meeting Ans. (a) 18. The management of a company is vested in the hands of: (a) Shareholders (b) Directors (c) Board of directors elected by shareholders (d) Creditors Ans. (c) 19. A popular technique for forecasting is: (a) Correlation analysis (b) Regression analysis (c) Linear programming (d) Month Carlo Ans. (b) 20. Which of the following is not a component of the new issue market? (a) Stock exchange (b) Unit Trust of India (c) Financial Institution like IFC, IDBI (d) LIC Ans. (d) 21. Bank deposits are money when they are: (a) Lying with Bank (b) In circulation (c) Kept with government (d) Kept with R.B.I. Ans. (b) 22. Money is: (a) Consumer goods (b) Capital goods (c) Producer goods

(d) Neither of them Ans. (d) 23. Papers on the Science of Administration is written by: (a) L. Urwick (b) Gullick (c) Both combined (d) M. P. Follett Ans. (c) 24. Find the correct answer regarding classical theory of organizations? (i) It throws focus on human beings as such (ii) It throws focus not on human beings as such but on the role (iii) It is normally the dominant set of work relationship. (iv) All of the above (a) (i) and (ii) only (b) (ii) and (iii) only (c) (i) and (iii) only (d) (iv) only Ans. (b) 25. Full delegation is called: (a) Alter-ego (b) Shelter-ego (c) Ego (d) None of the above Ans. (d) 26. The Modern Theory is also called the: (a) System Analysis of Organizations (b) Human Relations Theory (b) Mechanistic Theory (d) Structural Theory Ans. (a) 27. Sales invoicing is a: (a) Pre-sales activity (b) Job of finance department (c) Post-sales activity (d) All of the above. Ans. (a) 28. Managerial decision-making refers to: (a) Programmed decisions (b) Unprogrammed decisions (c) Information system

(d) Operation system Ans. (b) 29. Which of the following statement is true? (a) Authority can not be delegated, but responsibility can be delegated (b) Both authority and responsibility can be delegated (c) Authority ca only be delegated (d) Responsibility can only be delegated Ans. (a) 30. Dynamic factors in trade theory refer to change in: (a) Factor endowments (b) Technology (c) Tastes (d) All of the above Ans. (d) 31. The classical theory of organizations manifest following certain features which are: (i) Impersonality (ii) Division of work (iii) Hierarchy (iv) Efficiency (a) (i) and (ii) only (b) (iii) and (iv) only (c) (i), iii and (iv) only (d) (i), (ii), (iii) and (iv) Ans. (d) 32. The line agency should not have: (a) Operating unit (b) Major substantial purpose (c) Advisory and co-coordinating functions (d) Independent staff Ans. (b) 33. The difference between the line and staff units is: (a) Marginal (b) Qualitative (c) Quantitative (d) None of the above Ans. (b) 34. Oral communication in Organisations are: (a) Formal communication (b) Information communication (c) Discretionary communication

(d) All of the above Ans. (b) 35. Structure variable is synonymous with: (a) Task (b) Relation (c) Style (d) Attitude Ans. (a) 36. Effective supervision is an activity of: (a) Organization function (b) Staffing function (c) Direction function (d) Control function Ans. (c) 37. Accent of human relation theory is: (a) Action-Oriented (b) Hierarchy-Oriented (c) Organization-Oriented (d) None of the above Ans. (a) 38. Marketing research does not normally: (a) Gather environmental information (b) Provide a continuous source of information (c) Relate to all aspects of. marketing operations (d) Describe the current situation Ans. (b) 39. A periodic report can be used to: (a) Identify the problem (b) Evaluate solution (c) Identify solution (d) Select solution Ans. (a) 40. Corporate modeling software can be used for: (a) Cash planning (b) Operational budding (c) Capital budgeting (d) All of the above Ans. (d)

41. The overall goal of Scientific Management is: (a) Maximization of productivity (b) Maximization of employment (c) Higher industrial efficiency (d) Greater profit to producers Ans. (c) 42. Statutory meeting is needed for: (a) All companies (b) For a private company (c) For a public company only (d) For a statutory company only Ans. (c) 43. Central Monetary Authority of the country is: (a) Union Finance Ministry (b) Reserve Bank of India (c) Planning Commission (d) Central Bank of Direct Taxes Ans. (b) 44. How many nationalized banks are there in our country? (a) Nineteen (b) Twenty two (c) Fourteen (d) None of these Ans. (a) 45. It is only implies the transfer of function and not of authority. The reference is to: (a) Decentralization (b) Co-ordination (c) Delegation (d) None of the above Ans. (c) 46. The transfer of functions as well as authority is known as: (a) Delegation (b) Devolution (c) Decentralization (d) Promotion Ans. (c) 47. Two-factor theory is related to: (a) Leadership (b) Motivation (c) Communication

(d) None of the above Ans. (b) 48. The ERG Theory is related to: (a) Hertzberg (b) Maslow (c) Adam (d) Alderfer Ans. (d) 49. For McGregor, leadership condition that provides for security is/are: (a) Knowledge (b) Consistent discipline (c) Atmosphere of approval (d) All of the above Ans. (d)