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5. In case the firm makes varying investments on the different investment projects, the
appropriate project evaluation technique would be, which one of the following ?
(1) Average annual rate of return technique
(2) Pay back period technique
(3) Net present value technique
(4) Profitability index technique
6. According to Henry Fayol, which one of the following combinations of qualities are
required in a manager ?
(1) Physical, mental, experience, educational and conceptual
(2) Technical, human, conceptual, mental and moral
(3) Physical, mental, moral, educational, technical and experience
(4) Mental, moral, conceptual, educational, technical and experience
7. Neo-classical organisation theory emphasises on which one of the following ?
(1) Flat structure of organisation (2) Tall structure of organisation
(3) Coordination by hierarchy (4) Unity of command
8. According to Graicuna’s formula of span of management, if a superior has three
subordinates, what number of cross-relationships would be ?
(1) three (2) six
(3) nine (4) eighteen
9. In Reddin’s ‘Tridimensional Grid’, which one of the following is a less effective style of
leadership ?
(1) Developer (2) Missionary
(3) Executive (4) Bureaucrat
10. Assertion (A) : Attribution theory is based on relationship between personal perception
and interpersonal behaviour.
Reasoning (R) : Since most ‘whys’ are not directly observable, people must depend
upon cognitions, particularly perception.
Codes :
(1) (A) is right but (R) is wrong.
(2) (A) is wrong but (R) is right.
(3) Both (A) and (R) are right but (R) does not explain (A).
(4) Both (A) and (R) are right and (R) explains (A).
11. Arrange the following steps of training and development process in the right sequence :
a. Need analysis
b. Validation
c. Evaluation
d. Implement the programme
e. Instructional design
(1) a, e, d, c, b (2) a, e, c, b, d
(3) a, e, b, d, c (4) a, b, e, c, d
12. Which one of the following is related to ‘Standard of Personnel’ ?
(1) Job Specification (2) Job Description
(3) Job Design (4) Job Evaluation
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13. If an employee desires to pay more than the minimum required contribution under the
Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, then
(1) employer shall also pay an amount equal to the total contribution of employee.
(2) employer shall pay only half of the additional contribution of employee.
(3) employer is under no obligation to pay the additional contribution.
(4) the act is silent regarding this matter.
14. Under the Employees’ State Insurance Act, 1948, sickness benefit can be paid for which
one of the following maximum periods ?
(1) 45 days in two consecutive benefit periods.
(2) 66 days in two consecutive benefit periods.
(3) 91 days in two consecutive benefit periods.
(4) 180 days in two consecutive benefit periods.
15. Which one of the following laws is enacted by the Central Government and enforced by
the State Governments ?
(1) The Employees State Insurance Act, 1948
(2) The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952
(3) Factories Act, 1948
(4) The Mines Act, 1952
16. The cost of external equity can be most appropriately computed as per the
(1) Earnings price ratio (2) Dividend price ratio
(3) Dividend price plus growth ratio (4) Capital assets pricing model
18. Which one of the following is not a feature of ‘Preference Shares’ ?
(1) Prior claim on income / assets of the company over equity shareholders.
(2) Redeemability after certain period.
(3) Possessing voting rights on important issues of the company.
(4) May possess the right to participate in surplus profits of the company.
19. The basic consideration for dividend pay-out for a company excludes which one of the
following ?
(1) Investment opportunities for the company
(2) Expectations of the shareholders of the company
(3) Legal and financial restrictions for the company
(4) Stability of the dividend considerations
20. For the following two statements of Assertion (A) and Reasoning (R) indicate the correct code :
Assertion (A) : Shareholders Wealth Maximisation (SWM) and not the profit
maximisation is an appropriate and operationally feasible financial
management goal.
Reasoning (R) : There exists a principal-agent relationship between the shareholders and
the management of the company.
Codes :
(1) (A) and (R) both are correct.
(2) (A) is correct but (R) is incorrect.
(3) (A) is incorrect but (R) is correct.
(4) (A) and (R) both are incorrect.
21. Which one of the following components is not the part of broad marketing environment ?
(1) Technological environment
(2) Task environment
(3) Demographic environment
(4) Natural environment
22. The Coco Cola Company markets a wide range of different beverage products including
bottled water, soft-drinks, juices and sports drinks. Each product appeals to a different
segment. This is an example of which type of market offering ?
(1) Differentiated marketing
(2) Target marketing
(3) Undifferentiated marketing
(4) Intensified marketing
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23. Temporarily reducing prices to increase short-run sales is an example of which one of the
following ?
(1) Segmented pricing (2) Promotional pricing
(3) Dynamic pricing (4) Geographical pricing
25. Statement – I : In developing advertising programme marketing managers must always
start by identifying the target market and buyer motives.
Statement – II : A company may run multiple ad campaigns at the same time, each
emphasizing different aspects of its brand and service.
(1) Only Statement – I is correct.
(2) Only Statement – II is correct.
(3) Both Statements – I and II are correct.
(4) Both Statements – I and II are incorrect.
27. In which one of the following situations, a product-oriented layout is appropriate ?
(1) A medical clinic
(2) An automated carwash
(3) A work centre for welding, heat treating and painting
(4) A home plumbing repair business.
28. A graphic tool to trace the interaction of several workers with one machine is termed as
(1) Gang process chart (2) Flow process chart
(3) Activity chart (4) Operation chart
29. Which one of the following is a technique of statistical quality control used for product
control ?
(1) R-chart (2) Sampling plan
(3) np-chart (4) control-chart
30. The decision-criterion in which a decision-maker selects an alternative that maximizes H
(criterion of realism) = [a × (maximum in column)] + [(1 – a) × (minimum in column)] is
called
(1) Laplace criterion (2) Hurwicz criterion
(3) Wald’s criterion (4) Bayesian criterion
31. Which one of the following expressions relates to an event which represents the
occurrence of either A or B or both ?
(1) A ∪ B (2) A ∩ B
(3) A– ∩ B (4) (A – ∩ B) – ∪ (A– ∩ B)
32. A Bernoulli process has all but which one of the following properties ?
(1) Each trial has two possible outcomes.
(2) The probability of a success on any trial remains fixed over time.
(3) The probability of success on any trial is equal to the probability of failure.
(4) Trials are statistically independent.
33. Statement – I : The product of coefficient of correlation, standard deviation of variable
‘X’ and Standard deviation of variable ‘Y’ gives the measure of
covariance between X and Y variables.
Statement – II : The product of coefficient of correlation between X and Y variables and
the ratio between standard deviation of X variable to standard deviation
of Y variable measures the slope of the regression line of X on Y
variable.
Codes :
(1) Both the Statements are correct.
(2) Both the Statements are incorrect.
(3) Statement – I is correct while Statement – II is incorrect.
(4) Statement – I is incorrect while Statement – II is correct.
34. Statement – I : Both the probable error and standard error of the coefficient of
correlation are different.
Statement – II : When a sampling distribution of mean is prepared by taking small sized
Managements from a normally distributed population, the distribution takes
the shape of normal distribution.
Codes :
(1) Both the Statements are correct.
(2) Both the Statements are incorrect.
(3) Statement – I is correct while Statement – II is incorrect.
(4) Statement – I is incorrect while Statement – II is correct
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35. Which one of the following is not the major characteristics of internet ?
(1) Open (2) Expensive
(3) Global (4) Untrusted
37. Consider the following statements and identify the correct code of true statements :
(a) When an organization’s survival is threatened and it is not competing effectively,
retrenchment strategies are often needed.
(b) Turnaround strategy is used when an organization is performing well but has not yet
reached a critical stage.
(c) Divestment strategy involves selling the business or setting it up as a separate
corporation.
(d) Liquidation strategy involves closure of business which is no longer profitable.
Codes :
(1) Only (a), (b) and (c) are correct.
(2) Only (b), (c) and (d) are correct.
(3) Only (a), (c) and (d) are correct.
(4) Only (a) and (d) are correct.
38. Statement – I : Most businesses start off as “Question Marks”, in that they enter a highgrowth market in which there is already a market leader.
Statement – II : A “Star” is the market leader in a high-growth market, but it does not
necessarily provide much cash.
(1) Statement – I is correct but Statement – II is incorrect.
(2) Statement – II is correct but Statement – I is incorrect.
(3) Both the Statements are incorrect.
(4) Both the Statements are correct.
42. Total Quality Management, job redesigning, new techniques of doing things and
management by consensus are the examples of which one of the following ?
(1) Opportunistic entrepreneurship
(2) Administrative entrepreneurship
(3) Incubative entrepreneurship
(4) Mass entrepreneurship
43. Under technology and quality upgradation support to help manufacturing MSMEs buy
energy efficient technologies for production, what percentage of the actual expenditure is
provided as financial support by the Government of India ?
(1) 75% (2) 60%
(3) 50% (4) 25%
44. Which one of the following is not a personal characteristic of an entrepreneur ?
(1) Innovative (2) Hardworking
(3) Practical (4) Submissive
45. Which one of the following is the most insignificant reason for sickness in SSI sector ?
(1) Power shortage (2) Lack of demand
(3) Management problems (4) Equipment problems
46. Statement – I : Ethical principles tend to be broader than legal principles.
Statement – II : Laws and ethics are closely related.
Codes :
(1) Statement – I is correct but Statement – II is incorrect.
(2) Statement – II is correct but Statement – I is incorrect.
(3) Both the Statements are correct.
(4) Both the Statements are incorrect.
47. Assertion (A) : The state shall endeavour to protect and improve the environment and
to safeguard the forest and wildlife of the country.
Reasoning (R) : The Directive principles of state policy of the Indian Constitution
Command the State to ensure protection and improvement of
environment and to safeguard forest and wildlife.
Codes :
(1) (A) is correct but (R) is not correct.
(2) (R) is correct but (A) is not correct.
(3) Both (A) and (R) are correct and (R) is the right explanation of (A).
(4) Both (A) and (R) are correct but (R) is not the right explanation of (A).
49. Which one among the following is not correct about J. J. Irani Committee’s
recommendations on Company Law (2005) :
(1) 2/5th of the board of a listed company should comprise of independent directors.
(2) Introduce the concept of One Person Company (OPC).
(3) Allow corporations to self-regulate their affairs.
(4) Disclose proper and accurate compilation of financial information of a corporation.
50. A business should act ethically for which of the following reasons ?
(a) To prevent harm to the general public
(b) To meet stake-holder expectations
(c) To protect their own employees
(d) To maximize profit of the business
Codes :
(1) (a), (b) and (c) only (2) (b), (c) and (d) only
(3) (a), (c) and (d) only (4) (a) and (d) only
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1. From the following two statements of Assertion (A) and Reasoning (R), indicate the
correct code :
Assertion (A) : The quantity of a product demanded invariably changes inversely to
changes in its price.
Reason (R) : The price effect is the net result of the positive substitution effect and
negative income effect.
Codes :
(1) (A) and (R) both are correct.
(2) (A) is incorrect but (R) is correct.
(3) (A) is correct but (R) is incorrect.
(4) (A) and (R) both are incorrect.
3. Which one of the following combinations may not render the investment multiplier
inapplicable ?
(1) Net imports, undistributed profits and taxation.
(2) Excess stocks of consumption goods, debt cancellation and savings.
(3) Price inflation, public investment programmes and strong liquidity preference.
(4) Closed economy, unemployment in the economy, constant marginal propensity to
consume.
9. Which one of the following methods of performance appraisal involves ranking
employees from best to worst in a particular trait ?
(1) Graphic Rating Scale method (2) Forced Distribution method
(3) Paired Comparison method (4) Alternation Ranking method
10. Which one of the following is not a basic feature of ‘Scanlon Plan’ ?
(1) Philosophy of competition (2) Identity
(3) Competence (4) Involvement system
11. A union of electricians working in different industries is called by which one of the
following ?
(1) Craft Union (2) Industrial Union
(3) General Union (4) National Union
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12. Which one of the following is not correct about voluntary retirement scheme in public
enterprises ?
(1) It was designed to help enterprises rationalise their surplus manpower.
(2) Salary for the purpose of VRS consists of basic pay only.
(3) Benefits are in addition to money that has accrued to provident fund.
(4) Benefit is tax-free severance payment.
13. In case Mutual Funds invest in the securities whose price variations suggest the general
price movement, it is called
(1) Hedge Fund (2) Index Fund
(3) Growth Fund (4) Balanced Fund
14. Indicate the correct code of the combinations of the following methods commonly used
for capital budgeting
a. Payback Period
b. Profitability Index
c. Utility theory
d. Internal rate of return
Codes :
(1) a, b and c (2) b, c and d
(3) a, b and d (4) a, c and d
20. Assertion (A) : A company’s positioning and differentiation strategy must change over
the product life cycle.
Reason (R) : A company’s product, market and competitors change over the product
life cycle.
Codes :
(1) (A) is correct, but (R) is incorrect.
(2) (A) is incorrect but (R) is correct.
(3) Both (A) and (R) are correct, but (R) is not the right explanation of (A).
(4) Both (A) and (R) are correct, and (R) is the right explanation of (A).
21. The following information is given :
Expected usage of 50,000 units in a period of 250 days
Cost of processing an order ` 20 per order
Carrying cost per unit ` 0.50 for the period lead time on an order : 5 days
Company wants to keep a reserve supply of two day’s usage.
How many units will be included in the reorder point ?
(1) 2000 (2) 1000
(3) 400 (4) 1400
22. Statement – I : A variable in the Linear Programming problem representing the unused
quantity of an input resource is called surplus variable.
Statement – II : Values of the variables in the objective function of the dual of a primary
problem denote shadow prices of the variables.
Codes :
(1) Both the Statements are correct.
(2) Both the statements are incorrect.
(3) Statement – I is correct while Statement – II is incorrect.
(4) Statement – I is incorrect while Statement – II is correct.
23. The least amount of time an activity is expected to consume. Which one of the following
relates to the above expression as per PERT language ?
(1) Expected time (2) Most likely time
(3) Optimistic time (4) Pessimistic time
24. Which one of the following is not covered while considering the types of costs involved in
quality control ?
(1) Preventive costs (2) Manufacturing costs
(3) Inspection costs (4) Failure costs
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32. Michael Porter’s Five Forces Model includes which one of the following combinations ?
(a) Threat of new potential entrants
(b) Threat of substitute product / service
(c) Bargaining power of suppliers
(d) Bargaining power of buyers
(e) Rivalry among current competitors
(f) Rivalry among prospective competitors
Codes :
(1) (a), (c), (d), (e) and (f) (2) (a), (b), (d), (e) and (f)
(3) (a), (b), (c), (e) and (f) (4) (a), (b), (c), (d) and (e)
33. Which one of the following is not a common motivation of an entrepreneur ?
(1) Desire to maintain the status quo
(2) Search for more rewarding work
(3) Search for personal and professional growth
(4) Desire for independence
34. The SFURTI programme of the government is to boost production in which one of the
following industries ?
(1) Auto-components industry (2) Industries using renewable energy
(3) Khadi and village industry (4) Construction industry
37. Social responsibility of business while appropriating natural resources by a corporate
entity has been recommended in which one of the following ?
(1) Montreal Protocol of 1987
(2) Millennium Development Goals 2008
(3) Sustainable Development Goals 2015 in Global Sustainability Report
(4) UNDP Human Development Report
38. Disclosure of corporate governance practice and its compliance has been stipulated in
which one of the following ?
(1) Directors’ Responsibility Statement under Section 134 of the Companies Act 2013.
(2) Auditor’s Report
(3) C.A.G. Report
(4) Report of the SEBI and MCA 21
39. Kumar Mangalam Birla Committee Report, Ramesh Chandra Committee Report, Cadbury
Committee Report primarily focus on which one of the following ?
(1) ethical issues in business practice and marketing practice
(2) health programme of the employees in an organisation
(3) issues relating to corporate governance practice
(4) gender issues in management and equality for all
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40. ‘The continuing commitment by business to behave ethically and contribute to economic
development while improving the quality of life of the workforce and their families as
well as of the local community and society at large.
This may be attributed rightly to which one of the following ?
(1) ethical responsibility of business
(2) corporate social responsibility
(3) commitment towards employee welfare
(4) compliance with the provisions of the Plantation Workers Act.
41. Arrange the steps of diagnostic model of human resource management in the correct
sequence from the first to the last. Select the code of correct sequence :
a. Evaluate
b. Prescribe
c. Diagnose
d. Implement
Codes :
(1) c, b, a, d (2) c, b, d, a
(3) a, c, d, b (4) a, c, b, d
42. Which one of the following is a training technique in which trainees act out parts in a
realistic management situation ?
(1) Action learning (2) Role playing
(3) Behaviour modelling (4) Case study
44. The agreement arrived at during the course of conciliation proceeding in industrial
disputes is known as
(1) Settlement (2) Award
(3) Reward (4) Accord and sanction
45. Results of a period that may occur at the initial career entry when the new employee’s
high job expectations confront the reality of a boring, unchallenging job.
This may rightly be attributed to which one of the following ?
(1) Reality Shock (2) Mentoring Shock(3) Mental upcharge (4) Career upset
46. The two dominant aspects of industrial relations scene in the modern industrial society are
covered in which one of the following ?
(1) Conflict and conciliation (2) Cooperation and conciliation
(3) Conflict and cooperation (4) Cooperation and codetermination
47. The decision of the adjudication authority and arbitrator in disputes is termed as
(1) Settlement (2) Award
(3) Reward (4) Accord and approval
48. In case of a domestic enquiry, which one of the following is not correct about enquiry
officer ?
(1) He has to follow the principles of natural justice.
(2) He can recommend punishment alongwith the report of findings.
(3) He is generally an officer of the establishment but in some cases enquiry is also held
by some outside agency.
(4) He can take final decision about punishment and issue an order inflicting
punishment.
50. Select the correct sequence of steps in setting a pricing policy :
(a) Determining Demand
(b) Analyzing competitors’ Costs, Prices and Offers
(c) Selecting the Final Price
(d) Selecting the Pricing Objective
(e) Estimating costs
(f) Selecting a pricing method
Codes :
(1) (d), (a), (e), (b), (f) and (c)
(2) (a), (e), (b), (d), (f) and (c)
(3) (a), (b), (e), (d), (f) and (c)
(4) (a), (b), (c), (d), (e) and (f)
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51. Which one of the following is a digital communications technique that involves improving
visibility and monitoring sentiment within social networks and blogs ?
(1) Email marketing (2) Display advertising
(3) E-PR (4) Search engine optimization
52. Which one of the following is the report of the company’s strengths and weaknesses
relative to various competitors ?
(1) Competitor value analysis
(2) Customer value analysis
(3) Customer profitability analysis
(4) Customer perceived value
53. A company prices a 2 litre bottle of its mineral water at ` 30 but 60 ml of the same water
in a moisturizer spray for ` 75. This is an example of which one of the following pricing
practices ?
(1) Product-Form pricing (2) Customer-segment pricing
(3) Image pricing (4) Location pricing
56. Which one of the following refers to “two or more unrelated companies put together
resources or programmes to exploit an emerging market opportunity” ?
(1) Holistic marketing (2) Horizontal marketing system
(3) Hub and spoke system (4) Co-branding
57. Credit sales of a firm in a certain year amounted to ` 12,00,000 and the sundry debtors
outstanding at the beginning and the end of the year amounted to ` 1,20,000 and ` 80,000
respectively. Indicate the correct code for the debtors turnover ratio and the average
collection period from the following :
(1) 10 and 1.2 months (2) 12 and 1 month
(3) 15 and 0.8 month (4) 6 and 2 months
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61. Indicate the correct code for the liquidity ratios from the following :
a. Current Ratio b. Acid Test/Quick Ratio
c. Total Assets Turnover Ratio d. Defensive-Interval Ratio
Codes :
(1) a, b and c (2) b, c and d
(3) a, b and d (4) a, c and d
62. Non-payment by solvent debtor till due date involves which one type of cost from the following ?
(1) Default cost (2) Delinquency cost
(3) Capital cost (4) Extra collection cost
63. Banks normally provide working capital finance in forms of which combination of the
following ?
a. Term loans b. Discounting of bills
c. Overdrafts d. Cash credits
Codes :
(1) a, b and c (2) b, c and d
(3) a, b and d (4) a, c and d
64. In case a product’s selling price (per unit) is ` 20, the variable cost (per unit) is ` 14, fixed
factory overheads, (per year) is ` 5,40,000 and fixed selling overheads is ` 2,52,000, the
break-even in terms of sales volume and the number of units to be sold to earn a profit of
` 60,000 will be which one of the following ?
Break-even Volume of Sales and Units to be sold for the desired profits
(1) ` 24,60,000 and 1,36,000 units
(2) ` 25,40,000 and 1,40,000 units
(3) ` 26,40,000 and 1,42,000 units
(4) ` 28,60,000 and 1,48,000 units
65. Anti dumping duty is levied on which one of the following :
(1) The goods exported from home country to encourage more export to a sovereign.
(2) The goods imported into the home country for the purpose of re-export to another
sovereign.
(3) The dumped imports which is causing damage to the domestic industry in the
importing country.
(4) The dumped imports which are meant for re-entry into a sovereign for further trade.
67. Challenges before international business such as base erosion and profit shifting (BEPs),
tax avoidance and shifting between a holding company and a subsidiary located in two
different tax sovereigns may be resolved by which one of the following ?
(1) Mandate of Viena convention
(2) Montreal protocol
(3) Technology transfer transactions, cyber space
(4) Kyoto protocol
68. An efficient dispute settlement mechanism under WTO was brought in by which one of
the following :
(1) The Uruguay Round Agreement
(2) Doha Round
(3) UNDP Human Development Report 2000
(4) The Uruguay and Geneva Round of Negotiation
69. The undernoted items may be categorized into which one of the following ?
Export quota, exchange control, profit remittance restrictions, subsidies, government
procurement
(1) Tariffs (2) Unrestricted tariffs
(3) Non-tariff barriers (4) Hybrid of tariff and no-tariff barriers
70. The undernoted items are categorized into which one of the following international
product decisions for global business ?
Straight extension, product adaptation, communication extension, communication
adaptation, product extension, dual adaptation and innovation
(1) Product diversification
(2) Product market segmentation
(3) Product communication strategies
(4) Market segmentation and product promotion
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