June 2019 – UGCNET17

Space for Leaderboard

Jun’19 Management

Note : Use the Full Screen mode for the best exam experience.

1. There are 100 questions in the test.
2. Every question carries 2 marks.
3. No Negative Marking.

Time Limit : 2 hours

1 / 100

The system of collective bargaining as a method of settlement of industrial disputes has been adopted and provided under

1) The Industrial Disputes Act, 1947

2) The Industrial Employment (Standing Orders) Act, 1946

3) The Trade Unions Act, 1926

4) The Taft-Hartley Act, 1947

2 / 100

What is the payoff at maturity of a long call below the strike price?

1) Greater than zero

2) Zero

3) In the money

4) Out of money

3 / 100

India’s Trade Policy, 2015-20 stipulates to raise India’s share in world exports to—

1) 5.0 percent

2) 4.5 percent

3) 3.5 percent

4) 2.5 percent

4 / 100

Study the data given below and calculate the Diluted Earnings Per Share (EPS):

Net profit for the year ending 31-12-2017 after preference dividend and tax = ₹1,00,000
Number of equity shares as on 1-1-2017 = 50,000
Number of 12% convertible debentures of ₹100 each = 1,00,000
Each debenture is convertible into 10 equity shares.
Tax rate applicable to the company = 30%
Interest on debentures before tax = 12% of ₹100 × 1,00,000 = ₹12,00,000

What will be the Diluted Earnings Per Share (EPS)?

1) Rs.3.06

2) Rs.3.68

3) Rs.4.40

4) Rs.2.00

5 / 100

When prices are rising, the LIFO produces:

1) Lowest cost flow and lowest inventory

2) Highest cost flow and lowest inventory

3) Highest cost flow and highest inventory

4) Lowest cost flow and highest inventory

6 / 100

The process for enabling employees to better understand and develop their career skills and interests and to use these skills and interests most effectively both within the company and after they leave the firm, is known as

1) Career planning

2) Career management

3) Career counselling

4) Career development

7 / 100

Balassa Index is often used as a tool to measure the

1) National competitive advantage

2) Comparative cost advantage of nations

3) Product life cycle for different commodities

4) Relative trade performance of individual countries in particular commodities

8 / 100

For which of the following types of goods does the demand increase rapidly with the increase in consumer’s income but slows down with further increases in income?

1) Normal goods

2) Essential consumer goods

3) Luxury and prestige goods

4) Inferior goods

9 / 100

The DuPont approach breaks down the earnings power on the shareholders’ book value (RoE) as

1) Total Assets Turnover × Gross Profit Margin × Debt Ratio

2) Net Profit Margin × Total Assets Turnover × Equity Multiplier

3) Total Assets Turnover × Gross Profit Margin × Equity Multiplier

4) Total Assets Turnover × Net Profit Margin

10 / 100

Transacional Analysis Does Not Help in

1) Improved communication within the organisation

2) Better leadership

3) Higher Social Status

4) Problem Solving

11 / 100

1) (a)-(iv), (b)-(i), (c)-(iii), (d)-(ii)

2) (a)-(iii), (b)-(iv), (c)-(ii), (d)-(i)

3) (a)-(ii), (b)-(iii), (c)-(iv), (d)-(i)

4) (a)-(i), (b)-(ii), (c)-(iv), (d)-(iii)

12 / 100

In most of the cases, “cessation of work”, refusal to continue to work or refusal to accept employment is called a strike. Which of the following does NOT come under the form of strike?

1) Hunger strike

2) Work-to-rule

3) Sit-down strike

4) Gherao

13 / 100

Firm A Acquirs firm B. Market price of shares of B is Rs. 20 per share and EPS is Rs. 5. For an exchange ratio of 1.5:1, what was the P/E ratio used in acquiring firm B?

1) 6

2) 2.67

3) 5

4) 4

14 / 100

NITI Aayog, GOI, has launched a scheme to develop an ecosystem for women entrepreneurship in India. Identify the scheme out of the following:

1) Women Knowledge Center

2) Naari Shakti Aayog

3) Women Entrepreneurship Platform

4) Women Empowerment Agency

15 / 100

The term ‘The War for Talent’ was coined by:

1) T. V. Rao

2) McKinsey

3) Udai Pareek

4) D. Ulrich

16 / 100

For a situation where 100 misprints are distributed randomly throughout the 100 pages of a book, the probability that a page selected at random will contain at most one misprint will be

1) 0.728

2) 0.736

3) 0.724

4) 0.732

17 / 100

Which one of the following is NOT correct for National Income?

1) Gross National Product (GNP) > Gross National Income (GNI)

2) Net Domestic Product (NDP) = NNP less Net Income from Abroad

3) Net National Product (NNP) = GNP less Depreciation

4) Gross Domestic Product (GDP) = GNP less Net Income from Abroad

18 / 100

According to the BCG matrix, for which one of the following positions of SBU the firm should decide to curtail losses by divesting?

1) Dog

2) Cash cow

3) Question mark

4) Star

19 / 100

MM Hypothesis for capital structure is based on which of the following assumptions?”

(a) Investors are rational and have homogeneous expectations
(b) Perfect capital market
(c) 100% retention of profits
(d) No taxes

Which of the following options is most appropriate?

1) (a), (b), (c), (d)

2) (a), (c), (d)

3) (a), (b), (d)

4) (b), (c), (d)

20 / 100

Respondents of a recent sample survey provided names of friends they thought would be likely users of a new product. These friends were contacted, completed a survey, and asked to supply names of other likely users. Which method of sampling has been used in this survey?

1) Quota

2) Judgemental

3) Expert

4) Snowball

21 / 100

Which among the following is a correct statement?

1) Intrapreneurship is the change initiative taken by a group of independent people.

2) Intrapreneur is an employee and entrepreneur is free and the leader of the operation.

3) Entrepreneurship is the change initiative taken within a going concern by the people working in the organisation.

4) Entrepreneur is an employee and intrapreneur is free and the leader of the operation.

22 / 100

Organisations encounter many different forces for change which may be external or internal. Which among the following does NOT come under the external forces of change?

1) Workforce diversity

2) Competition in the market

3) Technological advancement

4) Change in leadership

23 / 100

Which of the following invalidates informal persuasions to boycott China imported goods?

1) Most favoured nation principle

2) Plurilateral agreement

3) Protection through tariffication

4) National treatment rule

24 / 100

Feasibility analysis is the process of determining if a business idea is viable. It consists of four areas of feasibility analysis. Identify the correct combination.

1) Product/service feasibility; Industry/target market feasibility; Organizational feasibility; Human resource feasibility

2) Financial feasibility; Product/service feasibility; Industry/target market feasibility; Organizational feasibility

3) Industry/target market feasibility; Organizational feasibility; Financial feasibility; Leadership feasibility

4) Industry/target market feasibility; Organisational feasibility; Human resource feasibility; Leadership feasibility

25 / 100

1) (a)-(iv), (b)-(i), (c)-(ii), (d)-(iii)

2) (a)-(ii), (b)-(i), (c)-(iii), (d)-(iv)

3) (a)-(iii), (b)-(iv), (c)-(ii), (d)-(i)

4) (a)-(iii), (b)-(i), (c)-(iv), (d)-(ii)

26 / 100

Re-engineering, a radical redesign of business processes, is an essential and integral to which of the following strategies?

1) Growth strategy

2) Turnaround strategy

3) Diversification strategy

4) Expansion strategy

27 / 100

Entering a foreign market by developing foreign-based assembly or manufacturing facilities is known as

1) Direct investment

2) Exporting

3) Joint ownership

4) Licensing

28 / 100

Which of the following institutions is responsible for the execution of India’s import-export policies?

1) Chief Controller of Imports and Exports

2) Director General of Foreign Trade (DGFT)

3) Export Promotion Councils and Commodity Boards

4) Federation of Indian Export Organizations

29 / 100

Which of the following modules is NOT a part of a typical ERP system?

1) The Asset Management (AM) Module

2) The Corporate Management (CM) Module

3) The Project System (PS) Module

4) The Human Resource (HR) Module

30 / 100

Which of the following institutions is known as the ‘soft loan window’ of the World Bank?

1) International Monetary Fund

2) International Finance Corporation

3) International Development Agency

4) Asian Development Bank

31 / 100

Linux is the most well-known and widely used

1) System software

2) Open source operating system

3) Java platform

4) Communication software

32 / 100

Name the human resource demand (need) forecasting technique, which solicits estimates of personnel needs from a group of experts, usually managers. The HRP experts act as intermediaries, summarise the various responses and report the findings back to the experts. The experts are surveyed again after they receive this feedback. Summaries and surveys are repeated until the experts’ opinions begin to agree. The agreement reached is the forecast of the personnel needs.

Select the correct option:

1) Ratio-trend Analysis

2) Venture Analysis

3) Regression Analysis

4) Delphi Technique

33 / 100

What is the market price per share (face value = Rs.100) as per Walter model if the profitability rate of the company is 16 percent, payout ratio is 80 percent and the cost of capital is 10 percent?

1) Rs. 182.90

2) Rs. 180.90

3) Rs. 169.20

4) Rs. 179.20

34 / 100

1) (a)-(iv), (b)-(ii), (c)-(i), (d)-(iii)

2) (a)-(ii), (b)-(iii), (c)-(i), (d)-(iv)

3) (a)-(iii), (b)-(i), (c)-(iv), (d)-(ii)

4) (a)-(iv), (b)-(ii), (c)-(iii), (d)-(i)

35 / 100

What is the one-month forward price of crude oil trading at $70 a barrel when annual interest rate is 6 percent and monthly storage cost amounts to $0.60?

1) $69.75

2) $70.95

3) $70.25

4) $69.05

36 / 100

If Mr. X pays a well-known fashion innovator such as Calvin Klein for the right to use its name on his apparel and accessories, then Mr. X is using which type of branding?

1) Licensed branding

2) Co-branding

3) Private branding

4) Manufacturer's branding

37 / 100

Which of the following statements is true?

1) In regression analysis, the dependent variable is treated as a fixed variable, while the independent variable is random.

2) The Spearman correlation coefficient is a measure of the association between two interval variables.

3) The Pearson correlation coefficient is designed to capture the extent of linear association between variables.

4) The Pearson correlation coefficient can range from +2.0 to -2.0.

38 / 100

Exponential distribution comprises which of the following characteristics?

(a) It is discrete distribution
(b) It is a family of distributions
(c) It is skewed to the left
(d) The x values range from zero to infinity

Which one of the following options is most appropriate?

1) (c) and (d)

2) (b) and (d)

3) (b), (c) and (d)

4) (a), (b), (c) and (d)

39 / 100

Which national institute has set up/established a ‘Centre for Research in Entrepreneurship Education and Development (CREED)’ with the objective to broaden the frontier of entrepreneurship research?

1) Delhi University

2) Institute of Rural Management, Anand

3) Entrepreneurship Development Institute of India

4) Indian Institute of Management, Ahmedabad

40 / 100

What refers to the stock of employee skills, knowledge and capabilities that may not show up in a balance sheet but have significant impact on a firm’s performance?

1) Human Resource Planning

2) Human Resource Management

3) Human Capital

4) Number of Employees

41 / 100

The credit of taking portfolio theory from abstraction to reality goes to

1) Jack Trepnor

2) Eugene Fama

3) Harry Markowitz

4) William Sharpe

42 / 100

Evaluate the statements according to Aaker model of defining brand identity/equity:

Statement I: A particularly important concept for building brand equity is brand identity that represents what the brand stands for and promises to customers.
Statement II: The core identity is most likely to change as the brand travels to new markets and products.

Which of the following options is correct?

1) Statement (I) is incorrect while Statement (II) is correct

2) Statement (I) is correct while Statement (II) is incorrect

3) Both the statements are correct

4) Both the statements are incorrect

43 / 100

Assertion “A”: Corporate governance is an important instrument of investor protection.
Reason “R”: Strong corporate governance is indispensable to resilient and vibrant capital markets.

Which one of the following options is correct?

1) Both A and R are correct and R is the right explanation of A

2) Both A and R are incorrect

3) A is correct but R is incorrect

4) Both A and R are correct but R is not the right explanation of A

44 / 100

The following statements relate to marketing

Statement I: “For any business enterprise there are two and only two basic functions: marketing and innovation. These two produce results; all the rest are costs.”

Statement II: “The product concept of marketing holds that business can be managed by maximization of production and the resultant lower unit cost and low price.”

Which of the following options is correct?

1) Statement I is correct, but II is incorrect

2) Both the statements I and II are correct

3) Both the statements I and II are incorrect

4) Statement II is correct, but I is incorrect

45 / 100

The technology advancements in the banking sector posed a challenge for the old players in the industry. The public sector banks lagged in modernization because of the traditional and bureaucratic banking norms that were in force. In the face of competition, public sector banks had to hire new talent and keep an open mind about evolving norms as per the market requirements.

Which of the following analysis/methods can help banks to identify jobs and duties of employees as well as what kinds of people to hire for different jobs?

1) Job Analysis

2) Work-load Analysis

3) Job evaluation

4) Work-force Analysis

46 / 100

Cash Flow Analysis is an important financial tool for the management. Its chief advantages are

(a) Helps in cash management
(b) Helps in external financial management
(c) Helps in internal financial management
(d) Discloses the movements of cash

Which of the following options is correct?

1) (a), (b), (c) and (d)

2) (a), (b) and (d) only

3) (a), (c) and (d) only

4) (a) and (d) only

47 / 100

Two friends are on WhatsApp discussing a holiday plan. Immediately, Uber pops up within WhatsApp to help book a ride and provide an estimate. This is known as

1) Direct mail marketing

2) Mail order marketing

3) Contextual digital marketing

4) Telemarketing

48 / 100

Which one of the following demand forecasting methods is NOT a survey method?

1) Delphi method

2) Complete enumeration method

3) Graphical method

4) End use method

49 / 100

Which of the following institutions prepares and publishes FDI confidence index annually?

1) UNCTAD

2) A. T. Kearney

3) WTO

4) MSCI

50 / 100

An airline offering special lounge for waiting is an example of which one of the following differentiators of the service offer?

1) Differentiation through the experience

2) Differentiation through brand image

3) Differentiation through special constituents

4) Differentiation through pricing

51 / 100

Which of the following statistical techniques should be used when you wish to examine the association between two nominal variables?

1) Pearson correlation coefficient

2) Chi-square contingency test

3) Simple correlation coefficient

4) Multiple regression analysis

52 / 100

AB Ltd. manufactures filing cabinets. For the current year, the company expects to sell 4,000 cabinets involving a loss of Rs. 2,00,000. Only 40 percent of the plant’s normal capacity is being utilised during the current year. The fixed costs for the year are Rs. 10,00,000 and fully variable costs are 60 percent of the sales value. What is the break-even point in terms of sales value?

1) Rs. 30,00,000

2) Rs. 25,00,000

3) Rs. 20,00,000

4) Rs. 16,66,667

53 / 100

International Fisher Effect suggests that a home currency will

1) Appreciate if the current home inflation rate exceeds the current foreign inflation rate

2) Depreciate if the current home interest rate exceeds the current foreign interest rate

3) Appreciate if the current home interest rate exceeds the current foreign interest rate

4) Depreciate if the current home inflation rate exceeds the current foreign inflation rate

54 / 100

John Dunning argued that FDI is attracted because of the unique advantage of

1) Market imperfection

2) Product life cycle advantages

3) Ownership, location, and internalisation

4) Firms seeking to establish a dominant market presence

55 / 100

The correlation coefficient is the _______________ of two regression coefficients,

1) Median

2) Harmonic mean

3) Arithmetic mean

4) Geometric mean

56 / 100

A specific category of information system serving middle managers by providing reports on the organization’s current performance is called

1) DSS

2) TPS

3) MIS

4) ESS

57 / 100

If risk-free return is 8 percent and the expected return on a market portfolio is 12 percent, the required return on a stock is 15 percent. What is stock beta?

1) 1.25

2) 1.75

3) 2.75

4) 0.75

58 / 100

Data scrubbing is:

1) A process to load the data in the data warehouse and to create necessary indices.

2) A process to upgrade the quality of data after it is moved into a data warehouse.

3) A process to upgrade the quality of data before it is moved into a data warehouse.

4) A process to reject data from the data warehouse and to create the necessary indexes.

59 / 100

1) (a) – (iv); (b) – (iii); (c) – (i); (d) – (ii)

2) (a) – (ii); (b) – (iii); (c) – (i); (d) – (iv)

3) (a) – (iv); (b) – (i); (c) – (ii); (d) – (iii)

4) (a) – (i); (b) – (iv); (c) – (ii); (d) – (iii)

60 / 100

A company’s share is currently selling for ₹50 and is expecting a dividend of ₹3 per share after one year, which is expected to grow at 8% indefinitely. What is the equity capitalisation rate?

1) 9 percent

2) 24 percent

3) 14 percent

4) 17 percent

61 / 100

According to which of the following approaches of decision making, a manager picks up a course of action that is satisfactory or good enough under the circumstances?

1) The Cooperative Social Systems Approach

2) The Behavioural Approach

3) The 'Garbage Can' Approach

4) The Bounded Rationality Approach

62 / 100

Which one amongst the following is NOT social security legislation?

1) Payment of Wages Act, 1936

2) Payment of Gratuity Act, 1972

3) Employees' State Insurance Act, 1948

4) Employees' Compensation Act, 1923

63 / 100

The money spent for repairs of a motor car used by the business is a

1) Contingent Expenditure

2) Deferred Revenue Expenditure

3) Capital Expenditure

4) Revenue Expenditure

64 / 100

Four distinctive service characteristics greatly affect the design of the marketing program for services. The appropriate combination is:

1) Intangibility, inseparability, variability, and perishability

2) Variability, perishability, intangibility, and touchability

3) Intangibility, inseparability, variability, and touchability

4) Inseparability, variability, perishability, and touchability

65 / 100

The ethical decision ‘Same Job, Same Wage’ is used under which criterion?

1) Utilitarianism

2) Justice

3) Culture

4) Rights

66 / 100

1) (a)-(i); (b)-(ii); (c)-(iv); (d)-(iii)

2) (a)-(iv); (b)-(i); (c)-(ii); (d)-(iii)

3) (a)-(ii); (b)-(i); (c)-(iv); (d)-(iii)

4) (a)-(ii); (b)-(i); (c)-(iii); (d)-(iv)

67 / 100

The ratio between customer’s perceived benefits and the resources they use to obtain those benefits is known as

1) Customer loyalty

2) Customer value

3) Customer satisfaction

4) Customer retention

68 / 100

1) (a)-(iii); (b)-(iv); (c)-(i); (d)-(ii)

2) (a)-(ii); (b)-(iv); (c)-(i); (d)-(iii)

3) (a)-(ii); (b)-(iv); (c)-(i); (d)-(iii)

4) (a)-(i); (b)-(ii); (c)-(iv); (d)-(iii)

69 / 100

The mistake of paying more attention to the specific products of a company offers than to the benefits and experience produced by these products is known as

1) Marketing phobia

2) Marketing myopia

3) Marketing trivia

4) Marketing inertia

70 / 100

Depreciation charged on fixed assets in the Funds Flow Statement is/are

(a) Source of funds
(b) An application of funds
(c) Sources of funds in limited sense
(d) Added back to the operating profit to find out funds from operations

Which one of the following options is correct?

1) (b) only

2) (a) and (d) only

3) (d) only

4) (c) and (d) only

71 / 100

In which Amendment of the Constitution, the Government of India made a pioneering attempt to provide for ‘workers’ participation in management in industry’, by suitable legislation in the Directive Principles of State Policy?

1) The Constitution (41 Amendment Act), 1975

2) The Constitution (42 Amendment Act), 1976

3) The Constitution (46 Amendment Act), 1977

4) The Constitution (40 Amendment Act), 1972

72 / 100

Singapore Airlines offers personalized service at the airport, excellent service in flight, a menu of the customer’s choice, personal TV, etc. It is an example of:

1) Justified brand

2) Functional brand

3) Image brand

4) Experience brand

73 / 100

Which of the following were two major criteria for the first official definition of small-scale industry coined in the year 1950?

1) The annual turnover and the annual profit

2) The strength of the workforce and the annual turnover

3) The size of gross investment in fixed assets and the strength of the workforce

4) The size of gross investment in fixed assets and the annual turnover

74 / 100

Name the theory/concept/thought concerned with designing and shaping jobs to fit the physical abilities and characteristics of individuals so that they can perform their jobs effectively.

1) Economics

2) Physiology

3) Ergonomics

4) Psychology

75 / 100

The scheme, which has been launched by the MSME Ministry to access the capabilities and credit worthiness of the micro and small enterprises (MSEs), is called:

1) Zero defect zero effect certification

2) Performance and economic rating scheme

3) Performance and credit rating scheme

4) Technology upgradation scheme

76 / 100

1) (a)-(iv), (b)-(iii), (c)-(i), (d)-(ii)

2) (a)-(ii), (b)-(iii), (c)-(iv), (d)-(i)

3) (a)-(i), (b)-(iii), (c)-(ii), (d)-(iv)

4) (a)-(iii), (b)-(ii), (c)-(iv), (d)-(i)

77 / 100

1) (a)-(ii); (b)-(i); (c)-(iv); (d)-(iii)

2) (a)-(iv); (b)-(i); (c)-(ii); (d)-(iii)

3) (a)-(ii); (b)-(iv); (c)-(i); (d)-(iii)

4) (a)-(iv); (b)-(i); (c)-(iii); (d)-(ii)

78 / 100

Which out of the following is the principal financial institution for the promotion, financing and development of industries in the small scale sector and to coordinate the functions of other institutions engaged in similar activities?

1) Industrial Finance Corporation of India Limited

2) Infrastructure Development Finance Company Limited

3) Industrial Development Bank of India

4) Small Industries Development Bank of India

79 / 100

The income or gain expected from the second best use of resources lost due to the best use of the scarce resources is known as

1) Opportunity cost

2) Marginality principle

3) Incremental principle

4) Equi-marginal principle

80 / 100

The following statements relate to organizational culture:

Statement I: Culture is the cumulative preference of some states of life and some organized ways of dealing with basic concerns by members of a society.

Statement II: There are various ways of making employees aware about the organization’s culture. These include stories, language, rituals, organizational structure and physical layout and rules and policies.

Which of the following options is correct?

1) Both the statements I and II are incorrect

2) Both the statements I and II are correct

3) Statement II is correct, but I is incorrect

4) Statement I is correct, but II is incorrect

81 / 100

A large firm operating over a wide geographical area can speed up its collection by

1) Playing the float

2) Discretionary payment

3) Centralised collection

4) Concentration banking

82 / 100

Today’s new generation knowledge workers and professionals competing for career advancement and ready to work longer hours and work almost seven days a week is called

1) Willing slaves

2) Bonded labour

3) Hard working employees

4) Forced workers

83 / 100

The cooperative bank came into existence with the enactment of the Co-operative Credit Societies Act, 1912. Which among the following does not come under the structure of cooperative bank?

1) State Co-operative Bank

2) Primary Agricultural Credit Societies

3) Regional Rural Bank

4) Land Development Bank

84 / 100

Fine speciality store falls into

1) High-mark up, lower volume group

2) High-mark up, higher volume group

3) Low-mark up, higher volume group

4) Low-mark up, lower volume group

85 / 100

Read the following regarding PERT and CPM:

(a) PERT is probabilistic in nature and CPM is deterministic in nature.
(b) PERT is most suitable for new as well as old projects but CPM is of great value for projects that are repetitive.
(c) PERT focuses primarily on time element and attaches lesser significance to the cost. On the contrary, the CPM puts strong emphasis on cost.
(d) PERT is activity-oriented and CPM is event-oriented.

Which one of the following options is most appropriate?

1) (a), (b), (c) and (d)

2) (a) and (d)

3) (a), (c) and (d)

4) (a), (b) and (c)

86 / 100

Which one of the following is NOT an integral part of credit policy of a business firm?

1) Collection policy

2) Credit terms

3) Credit rating

4) Credit standards

87 / 100

A firm’s competitive advantage over its competitor is best described by the

1) Superiority of the corporate strategy over its business strategy

2) Difference between buyers' willingness to pay (WTP) and suppliers' willingness to sell (WTS) is greater than the competitor's difference between the WTP and WTS

3) Winner businesses win more than the loser's lose

4) Combined valuation of businesses more than the individual sum of businesses

88 / 100

The following statements relate to Mudra Yojana:

Statement I: Mudra is an NBFC supporting development scheme of the micro enterprise sector in the country. It provides refinance support to Bank/MFIs for lending to micro units having loan requirements up to Rs. 20 lakh.

Statement II: Mudra has created different products/schemes for refinancing loans. These interventions have been named Shishu, Kishore, and Tarun and TarunPlus to signify the state of growth/development and funding needs of the beneficiary micro unit/entrepreneur.

Which of the following options is correct?

1) Both the statements I and II are incorrect

2) Statement II is correct, but I is incorrect

3) Statement I is correct, but II is incorrect

4) Both the statements I and II are correct

89 / 100

Indicate the correct answer for the combination from the following regarding the conditions for the applicability of a binomial distribution:

(a) There are 𝑛 independent trials
(b) Each trial has only two possible outcomes
(c) The probabilities of two outcomes do not remain constant
(d) The trials are independent

Which of the following options is correct?

1) (b), (c) and (d)

2) (a), (b) and (d)

3) (a), (c) and (d)

4) (a), (b) and (c)

90 / 100

Which out of the following is NOT true about consumer satisfaction?

1) Consumer satisfaction is a post-consumption phenomenon

2) Consumer satisfaction results from a cognitive appraisal

3) Consumer satisfaction is a mild, positive emotional state resulting from a favourable appraisal of a consumption outcome

4) Consumer satisfaction is not different from consumer loyalty. Both are the same concepts

91 / 100

Which of the following approaches was added by Quinn to the Mintzberg’s modes of strategic decision making?

1) Planning approach

2) Logical incrementalism approach

3) Adaptive approach

4) Entrepreneurial approach

92 / 100

As a newly appointed marketing manager of a firm, you have been asked to determine if a special Point-of-Purchase (POP) display causes the purchase of the product on display. What type of research design will be needed?

1) Experimental

2) Normative

3) Descriptive

4) Exploratory

93 / 100

1) (a)-(iv); (b)-(ii); (c)-(iii); (d)-(i)

2) (a)-(i); (b)-(iv); (c)-(iii); (d)-(ii)

3) (a)-(ii); (b)-(i); (c)-(iv); (d)-(iii)

4) (a)-(ii); (b)-(iii); (c)-(i); (d)-(iv)

94 / 100

Statement I: All ideas are opportunities.
Statement II: An opportunity is an idea that has the qualities of being attractive, durable, and timely.

Which of the following options is correct?

1) Statement I is incorrect while Statement II is correct

2) Both the statements are correct

3) Both the statements are incorrect

4) Statement I is correct while Statement II is incorrect

95 / 100

Following are two statements with regard to product life cycle (PLC):

Statement I: Product sales pass through distinct stages of PLC, each posing different challenges, opportunities and problems to the seller.
Statement II: A company’s positioning and differentiation strategy must change as its product, market and competitors change over the product life cycle.

Which of the following options is correct?

1) Statement II is correct, but I is incorrect

2) Both the statements I and II are correct

3) Statement I is correct, but II is incorrect

4) Both the statements I and II are incorrect

96 / 100

The Industrial Disputes Act, 1947 has provided a machinery for settlement of industrial disputes. Which amongst the following machinery has NOT been provided under the Act?

1) National Tribunal

2) Works Committee

3) Voluntary Arbitration

4) Collective Bargaining

97 / 100

Which are the asset-related covenants adopted by financial institutions while granting a loan?

(a) Maintenance of working capital position in terms of a minimum current ratio
(b) Prohibition on disposal of promoters’ shareholding
(c) Restriction on creation of further charge on asset
(d) Ban on sale of fixed assets without the lender’s consonance

Which one of the following options is most appropriate?

1) (a), (b)

2) (a), (d)

3) (b), (c), (d)

4) (a), (c), (d)

✅ Correct Answer: (a), (c), (d)

✅ Explanation:

When financial institutions grant loans to businesses, they often impose asset-related covenants to protect their investment and ensure the borrower remains financially stable. These covenants typically focus on the management of assets, liabilities, and the use of collateral.

Here’s a breakdown of the correct covenants in the options:

1. (a) Maintenance of working capital position in terms of a minimum current ratio

✅ Explanation:
This covenant ensures that the borrower maintains a healthy working capital (current assets over current liabilities), which indicates the company’s ability to meet short-term obligations. Financial institutions often require a minimum current ratio to reduce the risk of insolvency.

2. (c) Restriction on creation of further charge on asset

✅ Explanation:
This covenant prevents the borrower from pledging additional assets as collateral to other lenders without the lender’s approval. This protects the lender by ensuring the borrower does not over-encumber the assets pledged against the loan, potentially jeopardizing their ability to repay.

3. (d) Ban on sale of fixed assets without the lender’s consonance

✅ Explanation:
This covenant ensures that the borrower cannot sell, transfer, or dispose of important fixed assets (such as land, machinery, or buildings) without the lender’s approval. It prevents the borrower from weakening the collateral base available to the lender.

❌ Why the other options are incorrect:

(b) Prohibition on disposal of promoters’ shareholding
❌ Explanation:
While this may be a common covenant related to equity ownership (especially for controlling interests), it is not an asset-related covenant. This would more likely be considered a shareholding covenant rather than an asset covenant, since it focuses on the ownership structure rather than physical or financial assets.

Final Answer: (a), (c), (d)

98 / 100

If actual production of units is lower than the budgeted level of production, which of the following costs would be lower than the budgeted costs?

1) Total variable cost

2) Variable cost per unit

3) None of the above

4) Total fixed cost

99 / 100

Which one of the following is true for a monopoly firm that operates at the level of output where MR = MC?

1) If AR = AC, there is abnormal profit for the firm

2) If AR > AC, the firm earns only normal profit

3) If AR > AC, there is abnormal profit for the firm

4) If AR < AC, the firm earns only normal profit

100 / 100

Which one of the following involves selling at a loss to gain access to a market and perhaps to drive competition?

1) Sporadic dumping

2) Reverse dumping

3) Persistent dumping

4) Predatory dumping

Your score is

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Why the other options are incorrect:

✅ (a) Investors are rational and have homogeneous expectations

✅ (b) Perfect capital market

❌ (c) 100% retention of profits

✅ (d) No taxes

✅ Correct Answer: Snowball Sampling

Explanation:

Why the Other Methods Are Incorrect:

Conclusion: The method used in this survey is snowball sampling.

✅ Correct Answer: The Corporate Management (CM) Module

Explanation:

Why is the Corporate Management (CM) Module not typically part of an ERP?

Conclusion: The “Corporate Management (CM) Module” is NOT typically part of a standard ERP system.

✅ Explanation of Each Bias:

🧩 (a) Anchoring Bias → (iv)

🔁 (b) Escalation of Commitment → (ii)

🔍 (c) Confirmation Bias → (i)

🕰️ (d) Hindsight Bias → (iii)

✅ Final Answer: (a)-(iv), (b)-(ii), (c)-(i), (d)-(iii).

✅ Correct Answer: The Pearson correlation coefficient is designed to capture the extent of linear association between variables.

📘 Explanation of Each Option:

✅ True Statement:

❌ Incorrect Statements:

✅ Final Answer:

✅ Correct Answer: (b), (d)

Explanation:

✅ (b) It is a family of distributions

❌ (a) It is a discrete distribution

❌ (c) It is skewed to the left

✅ (d) The x values range from zero to infinity

Conclusion: The correct options are (b) and (d).

❌ Why the other options are incorrect:

✅ Explanation:

✔ Analysis of Each Statement:

✅ Correct Answer: Graphical Method

Explanation:

1. Delphi Method

2. End Use Method

3. Graphical Method

4. Complete Enumeration Method

Conclusion: The correct answer is the Graphical Method, as it is not based on surveys.

✅ Correct Answer: Chi-square contingency test

📘 Explanation:

❌ Why the other options are incorrect:

✅ Final Answer: Chi-square contingency test

✅ Correct Answer: Geometric mean

📘 Explanation:

❌ Why Other Options Are Incorrect:

✅ Final Answer: Geometric mean

✅ Explanation:

❌ Why other options are incorrect:

Key Functions of SIDBI:

✅ Explanation:

✅ Conclusion:

✅ Final Answer: Both Statement I and Statement II are correct.

(a) State Co-operative Bank (SCB):

(b) Land Development Bank (LDB):

(c) Primary Agricultural Credit Societies (PACS):

(d) Regional Rural Bank (RRB):

✅ Correct Answer: (a), (b), and (c)

Explanation:

✅ (a) PERT is probabilistic in nature and CPM is deterministic in nature.

✅ (b) PERT is most suitable for new as well as old projects but CPM is of great value for projects that are repetitive.

✅ (c) PERT focuses primarily on time element and attaches lesser significance to the cost. On the contrary, the CPM puts strong emphasis on cost.

❌ (d) PERT is activity-oriented and CPM is event-oriented.

✅ Therefore, the correct statements are: (a), (b), and (c).

✅ Explanation:

📘 Statement I:

📘 Statement II:

📝 Final Answer: Both the statements I and II are correct

✅ Correct Answer: (a), (b), and (d)

Explanation: Conditions for the Applicability of a Binomial Distribution:

✅ Correct Answer: Experimental

Explanation:

Why the Other Options Are Incorrect:

✅ Explanation:

✅ Final Answer: (a)-(ii); (b)-(i); (c)-(iv); (d)-(iii)

1. (a) Maintenance of working capital position in terms of a minimum current ratio

2. (c) Restriction on creation of further charge on asset