A

19705 120 MINUTES

1. ‘Separation of Planning and Doing’ is one of the features of
A) Administrative Management
B) Scientific Management
C) Modern Management
D) Bureaucracy

2. Among the following who is not a follower of Scientific Management Thought

A) Elton Mayo B) Carl George Berth
C) Henry Gantt D) Lillian Gillbreth

3. The first person to identify the six major qualities of manager is

A) Max Weber B) Oliver Sheldon
C) Henry Fayol D) F.W. Taylor

4. Relay Assembly Test Room Experiments aimed to

A) Find out the effect of illumination on productivity of workers
B) Find out the effect of changes in working hours and working conditions on
productivity
C) Find out the workers attitudes and sentiments
D) Find out social aspect of work organisation

5. In MBO, “KRA” denotes:

A) Knowledge, Remuneration and Attitude towards objectives
B) Key Reward Agents
C) Key Result Areas
D) Keeping Restricted Aims

6. Psychoanalytical theory of personality is based on

A) Freudian Concept of unconscious nature of mind
B) Ericson’s different stages
C) Developmental Milestones
D) Intelligence Quotient

7. Which one of the following is not a theory of learning

A) Expectancy Theory
B) Social Learning Theory
C) Classical Conditioning Theory
D) Operant Conditioning Theory

8. Job enrichment is associated with

A) Horizontal loading to increase workforce flexibility
B) Increase the number of tasks associated with a particular job
C) Deliberate upgrading of responsibility and challenges at work
D) None of the above

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9. Hamel and Prahalad are exponents of:
A) Strategic competence B) Threshold competence
C) Competitive Advantage D) Core Competence

10. A Conglomerate means

A) Takes up related activities within a broader industry situation
B) Concentric diversification strategy
C) Takes up activities which are unrelated to core business
D) Stability strategy

11. The Balanced Scorecard Approach was developed by

A) R.B. Robinson B) Kaplan and Norton
C) G. Johnson D) K. Scholes

12. Six Sigma Approach is meant for

A) Measuring Efficiency Summative
B) Tool for Analysis and Continuous Improvement of Corporate Performance
C) A quantitative tool in management
D) None of the above

13. Statement 1: Critical Success Factors helps in analyzing suitability of a strategy

Statement 2: CSF are underlying core competencies in specific activities

A) Statement 1 is true and 2 is false

B) Statement 2 is true and 1 is false
C) Both statements are true
D) Both statements are false

14. The factors that creates threats and opportunities to Business organization is
A) Suppliers and Customers B) Internal Environment
C) Macro Environment D) Micro Enviornment

15. Globalisation is the term commonly used to describe the process of removal of
restriction on
A) Foreign Trade B) Investment
C) Both A and B D) None of the above

16. Statement 1 : Macro environmental forces are external and uncontrollable

Statement II: Macro environment consists of suppliers, customers and creditors

A) Both statements are true

B) Both statements are false
C) Statement 1 is true and statement 2 is false
D) Statement 1 is false and statement 2 is true

17. World bank classifies India as

A) Upper-Middle Income Economy
B) Lower-Middle Income Economy
C) High Income Economy
D) Low Income Economy

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18. Arrange the following sectors from highest to lowest, based on contribution to Indian GDP
A) Agriculture, Manufacturing, Services
B) Manufacturing, Agriculture, Services
C) Agriculture, Services, Manufacturing
D) Services, Manufacturing, Agriculture

19. Statement 1: National Income is the money value of final goods and services
Statement2: Net National Product = GNP-Depreciation

A) Both statements are true

B) Both statements are false
C) Statement 1 is true and 2 is false
D) Statement 1 is false and 2 is true

20. Match the following:

List-I List -II
1. Third Five Year plan a) 1951-56
2. Seventh Five Year Plan b) 2002-07
3. Tenth Five Year Plan c) 1961-66
d) 1985-90

A) 1-c, 2-d, 3-b B) 1-a, 2-c, 3-d C) 1-a, 2-d, 3-b D) 1-d, 2-b, 3-c

21. What are three key components of WTO?

A) A Senete, A Judiciary and A Directorate
B) An Executive apparatus, A Legislative Apparatus, An Enforcement Apparatus
C) Board of Governers, Assembly of Member Countries, A Steering Committee
D) A Trade Commission, A dispute settlement body and Council of Ministers

22. If a German manufacturer of household appliances wants to take advantage of cheap

labour in India, which of the following actions will not serve the purpose?
A) Build a manufacturing subsidiary in India, and employ Indian workers
B) Build a plant in India and send all German workers there
C) License an Indian firm to produce its products under its own label
D) Contract an Indian firm to do some of the processing for the manufacturer

23. Which of the following are regarded as the main aims of World Trade Organisation (WTO)?
a) To eliminate discrimination in World Trade
b) To provide financial assistance to member countries with debt
c) To reduce tariff barriers
d) To help and give preferences to small economies

A) a and c B) a and b C) c and b D) c and d

24. The National Highway projects contracted out by NHAI under PPP mode is an
example of
A) LOT B) BOOT C) BOT D) DBFO

25. GUI means

A) Graphical Useful Image B) Graphical User Interchange
C) Graphical User Interface D) None of these

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26. Data about data is normally termed as
A) Directory B) Meta data C) Data Bank D) None of these

27. Distinction between an expenditure whose benefits lasts over a long period and another
expenditure whose benefits lasts for a short period say within one year is made under
which of the following concepts?
A) Accounting Period B) Money Measurement Concept
C) Going Concern Concept D) Separate Entity Concept

28. Anticipate no profit but provide for all losses is based on

A) Materiality Principle B) Matching Principle
C) Conservatism Principle D) Disclosure Principle

29. The global key professional accounting body is

A) Institute of Chartered Accountants of India
B) International Accounting Standards Committee
C) International Accounting Standards Board
D) Financial Accounting Standards Board

30. Statement 1: A trial balance agreement indicates arithmetical accuracy in accounting

Statement 2: Agreement in trial balance is due to the recording of both debit and credit
aspect of each and every transactions

A) Statement 1 is true and 2 is false

B) Statement 1 is false and 2 is true
C) Both are false
D) Both are true

31. Assuming no returns outwards or carriage inwards, Cost of Goods Sold is

A) Opening Stock plus Purchases Plus Closing Stock
B) Purchases less Closing Stock Less Opening Stock
C) Sales minus Gross Profit
D) None of these

32. If Gross Profit is Rs.6500, Carriage outwards Rs.200; Carriage inwards Rs.300; Rent
Received Rs.500 and Other Expenses Rs. 3000. Find Net Proft
A) Rs.2500/- B) Rs.3800/- C) Rs.4100/- D) Rs.3300/-

33. Statement 1 : A Balance Sheet is a statement of Financial Performance of a Business

Statement 2 : A Balance sheet shows the Financial Position of a firm

A) Statements 1 and 2 are true

B) Statement 1 is true and 2 is false
C) Statement 1 is false and 2 is true
D) Both are false
34. Under the diminishing balance method, depreciation is calculated on
A) Original Value B) Market Value
C) Written down value D) Scrap Value

35. Amortisation applies to

A) Fixed Assets B) Current Assets
C) Intangible Assets D) Wasting Assets
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36. The Principle of Separate Legal Entity for a Company is called the Principle of
A) Existence B) Corporate Veil
C) Prudence D) Materiality

37. When shares are issued to promoters for the services rendered by them it is debited to
A) Share Capital Account
B) Goodwill Account
C) Preliminary Expenses Account
D) None of these

38. Pre acquisition profit in subsidiary company is considered as

A) Capital Profit B) Revenue Profit
C) Goodwill D) All of these

39. Which of the following Statements are True

Statement 1: Financial statements are only interim reports
Statement 2: Financial Statements are also known as annual Records

A) Statement 1 and 2 are true

B) Statement 1 is true and 2 is false
C) Statement 1 is false and 2 is true
D) Both are false

40. Statistical Inference is

A) Inductive inference B) Deductive inference
C) Objective inference D) Subjective inference

41. Type I error is the probability of

A) Accepting a true null hypothesis
B) Rejecting a true null hypothesis
C) Rejecting a false null hypothesis
D) Accepting a false null hypothesis

42. Match the following

List –I List-II
1. Exploratory Research a) to portray accurately the characteristics of an entity
2. Diagnostic Research b) to assess the frequency with which something happens
3. Descriptive Research c) to gain familiarity with a phenomenon

A) 1-b;2-c;3-a B) 1-c;2-b;3-a C) 1-a;2-c; 3-b D) 1-c; 2-a;3-b

43. Which of the following sequences of steps in research is scientific

A) Establishing relationship- hypothesis-problem identification-Analysis and
interpretation
B) Hypothesis-Objectives-Problem definition-Collection of Data-Analysis of data
C) Define the problem- Redefine the problem-Hypothesis formulation- Collection,
Organisation and Evaluation- Drawing Inferences- Testing Hypothesis
D) Define problem- Identify the causal relationships- Analysis of data-
Hypothesis formulation and testing

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44. Any numerical value calculated from the sample is called
A) Error B) Parameter C) Coefficient D) Statistic

45. The sampling technique under which the researcher ask the research participant to
suggest another potential research participant is
A) Cluster sampling B) Snowball Sampling
C) Quota Sampling D) Judgment sampling

46. Principle of Replication in experimental research states to

A) Measure and eliminate the effect of extraneous variables
B) Random assignment to control extraneous variables
C) Conduct experiment repeatedly to ensure the reliability
D) None of these

47. Which of the following statements about the hypothesis testing is true
Statement 1 : If the p-value is greater than the significance level we fail to reject null
hypothesis
Statement 2 : The significance level equals (1- probability of Type I error)

A) Both statements are true

B) Both statements are false
C) Statement 1 is true and 2 is false
D) Statement 1 is false and 2 is true

48. Match the following

List- I List-II
1. Judgement Sampling a) Projective Techniques
2. Parameter b) Non-probability sampling
3. TAT c) Population

A) 1-a; 2-c;3-b B) 1-b; 2-c;3-a C) 1-c;2-a;3-b D) 1-a;2-b;3-c

49. The outcomes are equally likely in

A) Relative frequency Approach to probability
B) Subjective Approach to probability
C) Axiomatic Approach to probability
D) Classical Approach to probability

50. Which among the following is an alternate hypothesis for left tailed test?
A) µ = µ0 B) µ < µ0 C) µ >µ0 D) µ ≠ µ0

51. The likelihood of two events happening together

A) Conditional Probability B) Marginal Probability
C) Joint Probability D) Prior Probability

52. In transportation problem, optimal solution can be verified by using

A) Least Cost Method B) North West Corner Rule
C) VAM D) MODI method

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53. A dummy activity
A) The performance of which requires no time, nor any resources
B) An activity that begins after an event has taken place
C) An activity which is performed along with another activity at the same time
D) None of these

54. Statement 1: The sum total of variances of critical activity time gives the variance of
the overall project completion time
Statement 2: The completion of project using PERT method follows normal
distribution
A) Statement 1 is true and 2 is false
B) Statement 2 is true and 1 is false
C) Both are true
D) Both are false

55. The objective of wealth maximization considers

A) Amount of returns expected
B) Timing of anticipated returns
C) Risk associated with uncertainty of returns
D) All of the above

56. CAPM measures

A) Systematic Risk B) Unsystematic Risk
C) Both A & B D) None of these

57. Business Risk can be measured using

A) Financial leverage B) Operating Leverage
C) Both A & B D) None of the above

58. EBIT is
A) Sales-Variable Cost B) Fixed Cost +Profit
C) Contribution – Fixed Cost D) All of the above

59. In Mutually exclusive projects one project is acceptance instead of other because of
A) High positive NPV B) Negative NPV
C) Both NPVs are equal D) All of the above

60. EBIT-EPS analysis is used for

A) Evaluating the effects of business risks on EPS
B) Determining the impact of change in sales on EBIT
C) Analysing EPS results for alternate financing plans at varying EBIT levels
D) Indifference in sales and profit

61. Statement 1: The bird in hand theory argues that investors prefer dividends because
dividends are taxed more favourably than capital gains
Statement 2 : Stock repurchases increases the number of outstanding shares
A) Both statements are false
B) Both statements are true
C) Statement 1 is true and 2 is false
D) Statement 2 is true and 1 is false

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62. Match the following
List-I List - II
1. Walters Model a) Capital structure
2. Internal rate of Return b) Dividend Theory
3. Net Operating Income Approach c) Capital Budgeting

A) 1-b; 2-c; 3-a B) 1-c: 2-a; 3-b C) 1-a;2-c;3-b D) 1-b;2-a;3-c

63. An increase in the number of stock in the portfolio, the systematic risk will
A) Increase at a decreasing rate
B) Increase at an increasing rate
C) Decrease at an increasing rate
D) Remain constant

64. Which of the following statements are true?

I. The beta of a stock is primarily determined by its correlation with the market
II. Securities that fall above the SML are undervalued
III. Securities that fall below the SML are undervalued

A) I &III only B) I & II only C) II & III only D) All are true

65. Which of the following is in consistent with Hedging approach to financing working
capital?
A) Financing short term needs with long term funds
B) Financing long term needs with short term funds
C) Financing short term needs with short term funds
D) Financing seasonal needs with long term funds

66. Danger Level = Normal Consumption X --------

A) Reorder Period
B) Maximum Reorder Period
C) Maximum Reorder Period in emergency
D) Minimum Reorder Period

67. The cost of electricity of a factory is treated as

A) Fixed Cost B) Variable Cost
C) Step Cost D) Semi variable Cost

68. Operating Costing is suitable for

A) Job order business B) Contractors
C) Manufacturing industries D) Service Industries

69. Marginal costing is preferred to absorption costing because it

A) Complies with the accrual or matching concept
B) Enables the use of opportunity cost approach
C) Complies with the International Accounting Standards
D) None of the above

70. Flow of goods and services from gathering materials until delivery of products is
known as
A) Supply Chain Analysis B) Flow Chart Analysis
C) Resource Chain Analysis D) Acquisition Analysis

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71. Preparation of Comparative Balance sheets for two years is
A) Short-term Analysis B) Long-term Analysis
C) Vertical Analysis D) Horizontal Analysis

72. Which of the following statements are true?

Statement 1:Reliability of financial analysis depends on reliability of financial data
Statement 2: Trend ratios are used in static analysis

A) Statement 1 is true and 2 is false

B) Statement 1 is false and 2 is true
C) Both statements are true
D) Both are false

73. Which of the following are sources of funds?

A) Issue of shares for the purchase of fixed assets
B) Issue of bonus shares
C) Conversion of debentures into shares
D) None of the above

74. Capital Gearing is one of the

A) Liquidity Ratio B) Activity Ratio
C) Leverage Ratio D) Profitability Ratio

75. When the current ratio is 4:1 and the amount of current liabilities is Rs.12000/-, what
is the amount of working capital
A) ` 48000/- B) ` 36000/- C) ` 30000/- D) ` 60000/-
76. Decrease in Bank Overdraft leads to
A) Inflow of cash
B) Outflow of cash
C) No Changes in cash position
D) None of these

77. Depreciation is included in the cost in

A) Payback Period B) ARR method
C) Profitability Index D) All of the above

78. Which of the following statements are true

1. Payback period is popularly known as pay off method
2. The Profitability Index is also known as Benefit Cost Ratio
3. Capital rationing and capital budgeting mean the same thing
4. The Net Present Value method is also known as Time adjusted method

A) 1&2 B) 2&3 C) 1,2 & 4 D) 1,2,3 & 4

79. Unity of command implies

A) A subordinate should receive order from all the superiors
B) Individuals must sacrifice in the larger interest
C) Be accountable to one and only one superior
D) None of these

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80. Line organization is also called
A) Military organization B) Functional organization
C) Line & staff organization D) Project organization

81. State which of the following statements are true or false:

I. Supervision refers to the direct and immediate guidance and control of
subordinates in the performance of their work
II. Supervision is guiding and directing and efforts of employees and other
resources to accomplish stated work outputs

A) I and II are true B) I is true and II is false

C) I is false and II is true D) I and II are false

82. Edward Tolman is associated with

A) Behaviour Approach B) Cognitive approach
C) Social cognitive approach D) Behavioural cognitive frame work

83. If a company pursue an ambitious aspiration and concentrate its full resources and
actions on achieving this aspiration it is called
A) Strategic intent B) Strategic control
C) Strategic surveillance D) None of the above

84. Which factor is not a component of Mc Kinsey’s seven‘s’ frame work

A) Super ordinate goal B) Skills
C) Staff D) Surveillance

85. State whether the following statements are true or false

I. GE matrix is called multifactor matrix.
II. It is developed by Boston Consulting Group

A) I and II are true B) I and II are false

C) I is false and II is true D) II is false and I is true

86. State whether the following statements are true or false

I. “Technological environment is highly volatile” because technological
environment is subjected to rapid changes.
II. As a result of technological change new technologies may emerge and old
technologies may become obsolete.
A) I and II are true B) I and II are false
C) I is false and II is true D II is false and I is true

87. Indicate whether the statements are correct or incorrect.

Statement I: Indian economy is a dualistic economy
Statement II: Indian economy is a mixed economy

A) Statement I is correct, but statement II is incorrect

B) Statement I is incorrect, but statement II is correct
C) Both statements I and II are correct
D) Both statements I and II are incorrect

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88. The diversion of equilibrium due to change in demand and supply in market results in
unemployment. Such an unemployment is termed as:
A) Disguised Unemployment B) Cyclical Unemployment
C) Open Unemployment D) Frictional Unemployment

89. State whether the following statements are true or false

I. Privatisation is the transfer of ownership of an enterprise from public sector to
private sector.
II. Privatisation is possible by divestiture.

A) I and II are true B) I and II are false

C) I is false and II is true D) II is false and I is true

90. Which among the following can be adopted for privatisation?

A) Divestiture B) Denationalisation
C) Contracting and franchising D) All the above

91. In 1993 Government of India set up a committee on disinvestment of public sector

enterprises. Who was the chairman of this committee?
A) Balwant Rai Mehta B) Ashok Mehta
C) L.M Singhvi D) C. Rangarajan

92. State whether the following statements are true or false

I. Liberalisation helps to seek foreign equity participation and foreign technology
II. Liberalisation protect domestic small scale industries
III. Domestic firms have to face increased competition

A) I & II are true III is false B) I & III are true II is false
C) I & II are false III is true D) II & III are true I is false

93. The major drawbacks of traditional file processing system include:

A) Data duplication B) Data inconsistency
C) Lack of data integration D) All of the above

94. In single entry system, the capital in the beginning of the accounting year is
ascertained by preparing:
A) Opening Statement of Affairs
B) Cash Account
C) Total Creditors Account
D) Cash and Bank Accounts

95. If the rate of gross profit is 25% of sales and the cost of goods sold is Rs.10,000, the
gross profit amount will be:
A) Rs. 2,500 B) Rs. 2,000 C) Rs.1,333 D) Rs.3,333

96. State whether the following statements are true or false

I. Net Profit according to Net Worth method is equal to : Capital at the end +
Drawings + Fresh capital introduced – Capital at the beginning of the period
II. The amount of credit sales is determined by preparing a Total Creditors
Account
A) I and II are true B) I is true and II is false
C) I is false and II is true D) I and II are false

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97. The amount of share premium received by the company is shown in the company’s
Balance Sheet under the heading:
A) Capital Reserve B) Reserves and Surplus
C) Contingent Reserve D) Share Surplus

98. Two companies A Ltd. and B Ltd. go into liquidation to form a new company AB Ltd.
This is a case of:
A) External reconstruction B) Internal Reconstruction
C) Absorption D) Amalgamation

99. State whether the following statements are true or false

I Liabilities not taken over by the new company are not transferred to the
realization account.
II A new company need not be formed in case of amalgamation.

A) I and II are true B) I is true and II is false

C) I is false and II is true D) I and II are false

100. State whether the following statements are true or false

I. In descriptive research, the researcher has no control over the variables.
II There is no need to set up a hypotheses in an empirical research.

A) I and II are true B) I is true and II is false

C) I is false and II is true D) I and II are false

101. Critical path of the PERT chart is

A) Path which takes the longest time to complete the project
B) The shortest path
C) Path which takes the shortest time to complete the project
D) None of the above

102. At a restaurant, a social worker gathers the following data. Of those visiting the
restaurant, 60% are male, 40% are alcoholics and 25% are male alcoholics. What is the
probability that a random male visitor to the restaurant is an alcoholic?
A) 6/25 B) 2/5 C) 5/12 D) 2/3

103. Operational Research Models include:

A) Iconic Model B) Analogue Model
C) Mathematical Model D) All of the Above

104. Match the following:-

List-I List-II
(a) Sequencing Model 1. PERT
(b) Mathematical Model 2. Matrix
(c) Inventory Model 3. Convex
(d) Allocation Model 4. EOQ

(a) (b) (c) (d)

A) 1 2 4 3
B) 4 1 3 2
C) 3 1 4 2
D) 3 1 2 4
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105. Assumptions of Karl Pearson’s co-efficient of correlation includes:
A) Normality B) Cause and effect relationship
C) Linear nature D) All of these

106. Indicate whether the statements are correct or incorrect.

Statement I: Investment decision relates to the selection of assets in which funds will
be invested by a firm
Statement II: Financing decision relates to the choice of the proportion of debt and
debt sources of financing

A) Statement I is correct, but statement II is incorrect

B) Statement I is incorrect, but statement II is correct
C) Both statement I and II are correct
D) Both statement I and II are incorrect.

107. Future value interest factor takes

A) Compounding rate B) Discounting rate
C) Inflation rate D) Deflation rate

108. Financial leverage measures

A) Sensitivity of EBIT with respect of percent change with respect to output
B) Percent variation in the level of production
C) Sensitivity of EPS with respect to percent change in level of EBIT
D) No change with EBIT and EPS

109. Treasury bills are traded in

A) Money market B) Capital market
C) Government market D) Regulated market

110. The dividend payout ratio is equal to

A) The dividend yield plus the capital gains yield
B) Dividend per share divided by earnings per share
C) Dividend per share divided by par value per share
D) Dividend per share divided by current price per share

111. Modigliani Miller argues that the dividend decisions are

A) Irrelevant as the value of the firm is based on the earnings power of its assets
B) Is relevant as the value of the firm is not based just on the earnings power of its
assets
C) Is irrelevant as dividend represent cash leaving the firm to shareholders which
owns the firm anyway
D) Is relevant as cash outflow always influences other firms decisions

112. What are the factors which make debentures attractive to investors?
A) They enjoy a high order of priority in the event of liquidation
B) Stable rate of return
C) Low risk
D) All of the above

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113. According to NOI approach, with increase in debt/equity ratio the financial risk of
equity shareholders
A) Decreases B) Increases
C) No change D) Depends on degree of leverage

114. Conversion cost is the sum of:

A) Direct material and direct labour
B) Indirect material and indirect labour
C) Direct labour and factory overhead
D) Only indirect expenses

115. Fixed cost per unit decreases when:

A) the volume of output or activity is increased
B) the volume of output or activity is decreased
C) variable cost increase
D) variable cost decreases

116. The concept of Value Engineering was born out of necessity almost …
A) just before World War I B) immediately after World War I
C) just before World War II D) immediately after World War II

117. Assuming the current ratio is 2, in which of the following case will have no change in
the ratio.
A) payment of long term loan
B) purchase of fixed assets
C) cash collected from debtors
D) issue of new shares

118. Increase in an asset due to purchase of asset is:

A) Source of fund B) Application of fund
C) Funds from Operation D) None of these

119. Excess of sales revenue over variable cost is known as:

A) Gross profit B) Net profit
C) Contribution D) Fixed cost

120. A method of product costing which assigns fixed overheads to work-in-progress and
finished goods inventories is:
A) marginal costing B) absorption costing
C) variable costing D) none of these

______________________

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