✅ Correct Answer: Both A and R are true and R is the correct explanation of A

✅ Explanation:

Let’s re-examine both statements carefully:

• Assertion (A):
  “A stereotyped and male-centered vision discourages some women from participating in business activities that could have a consequence on people who interact with women at the community level.”
  ✔️ This is true — cultural stereotypes and patriarchal norms often limit women’s participation in entrepreneurship.

• Reason (R):
  “Attributions of the society and the different socialisation processes relating to men and women may create obstacles for women due to unequal distribution of assets and services.”
  ✔️ This is also true — gender-based socialization and systemic inequality (e.g., limited access to finance, education) are fundamental reasons why such stereotypes persist.

• Link between A and R:
  The reason (R) explains why a male-centered vision (Assertion A) exists and persists — because women have historically been socialized differently and denied equal resources. Therefore, R directly supports and explains A.

✅ Final Answer: Both A and R are true and R is the correct explanation of A.

✅ Correct Answer: c and d

✅ Explanation:
According to Mintzberg’s organisational types, each type relies on a different coordination mechanism:

❌ a. Entrepreneurial organisations primarily focus on skills standardisation – Incorrect: They rely on direct supervision, not skills.
❌ b. Professional organisations primarily focus on output standardisation – Incorrect: They rely on skills standardisation (e.g., doctors, lawyers).
✅ c. Innovative organisations primarily focus on mutual adjustment – Correct: Also known as adhocracies, they thrive on collaboration and flexibility.
✅ d. Missionary organisations primarily focus on norms standardisation – Correct: They are guided by shared beliefs and values.
❌ e. Innovative organisations do not focus on mutual adjustment – Incorrect: This contradicts the key trait of innovative (adhocratic) structures.

✅ Final Answer: c and d.

The correct answer is: a – iii, b – i, c – ii, d – iv

Explanation:

1. a – iii (Implicit Cost):

   • Implicit cost refers to the imputed value of inputs owned and used by the firm. These are the opportunity costs of using resources that the firm already owns (such as the owner’s time or capital) rather than renting or buying them from outside.

2. b – i (Marginal Cost):

   • Marginal cost is the change in the total cost per unit change in output. It reflects how much the cost increases when the production of an additional unit of output is made.

3. c – ii (Incremental Cost):

   • Incremental cost is the total increase in costs resulting from the implementation of a particular managerial decision. It refers to the additional costs incurred when a company undertakes a new project or decision.

4. d – iv (Sunk Cost):

   • Sunk cost refers to costs that are not affected by managerial decisions. These costs have already been incurred and cannot be recovered, regardless of future actions or decisions.

Thus, the correct matching is:

• a – iii: Implicit cost refers to the imputed value of resources owned and used by the firm.
• b – i: Marginal cost refers to the change in total cost per unit change in output.
• c – ii: Incremental cost refers to the increase in costs due to a specific managerial decision.
• d – iv: Sunk cost refers to costs that are not affected by future decisions.

Therefore, the correct answer is a – iii, b – i, c – ii, d – iv.

✅ Correct Answer: Realisation Concept

✅ Explanation: The Realisation Concept in accounting states that profits are recognized when the title to goods passes to the customer, not necessarily when the payment is made. This concept focuses on the idea that revenue is considered earned when the goods or services are delivered or the ownership is transferred, and not when cash is received. It aligns with the accrual basis of accounting, where revenue is recognized at the point of sale or delivery, even if the customer hasn’t yet paid.

❌ Why the other options are incorrect:

• Matching Concept: This concept requires that expenses be matched with the revenues they generate in the same accounting period. It focuses on ensuring that costs are recorded in the same period as the revenues they help to generate, not on the timing of revenue recognition itself.

• Prudence Concept: The Prudence Concept (or conservatism) dictates that accountants should be cautious when making judgments under uncertainty. It ensures that revenues are not overstated and expenses are not understated. It doesn’t directly deal with the timing of revenue recognition.

• Materiality Concept: The Materiality Concept allows accountants to disregard certain small or insignificant transactions if the impact on financial statements is minimal. It focuses on whether a financial item is large enough to impact decision-making, rather than on the timing of recognizing revenue.

✅ Final Answer: Realisation Concept.

✅ Correct Answer: a – iv, b – iii, c – i, d – ii

📘 Explanation:

Matching List I (Organisational Appraisal Techniques) with List II (Proposers):

a. Balanced Scorecard → iv. Robert S. Kaplan and David P. Norton

• A strategic tool that helps align business activities to the vision and strategy of the organization.

b. Economic Value-Added (EVA) Analysis → iii. Stern Stewart & Company

• A financial performance measure developed by this firm to assess true economic profit.

c. VRIO Framework → i. Barney

• A resource-based view model developed by Jay Barney, analyzing Value, Rarity, Imitability, and Organization.

d. Business Intelligence → ii. Howard J. Dresner

• Coined by Howard Dresner (Gartner analyst) to describe data-driven decision-making tools and systems.

✅ Final Answer: a – iv, b – iii, c – i, d – ii

Correct Answer: The consistency of a measure taken at two different points of time

Details:

Correct Answer:

✅ “The identical observation of a single individual’s scores.”

• Internal reliability ensures that the different items within the same test consistently measure the same concept.

• If an individual’s responses to similar test items are consistent, the test has high internal reliability.

❌ “The increase and decrease in scores measured over time produce a variance of less than 50%”

• This describes changes in test scores over time, which is related to test-retest reliability, not internal reliability.

❌ “The consistency of a measure taken at two different points of time”

• This is the definition of test-retest reliability, which checks whether a test produces consistent results over time.

❌ “The property of a distribution to achieve a mean of 0 and variance of 1”

• This describes standardization (z-score transformation) in statistics, not reliability.

✅ Correct Answer: a – iii, b – iv, c – ii, d – i

📘 Explanation:

• a. Grouping of products → iii. Aggregate Planning
  👉 Aggregate planning focuses on grouping products for effective capacity and resource planning.

• b. Allocation of job tasks → iv. Assignment Model
  👉 The Assignment model is used to assign tasks/jobs to resources (like machines or workers) efficiently.

• c. Evaluating facility location → ii. Transportation Model
  👉 The Transportation model helps evaluate and optimize logistics and facility locations.

• d. Demand forecasting → i. Delphi Method
  👉 The Delphi Method is a structured forecasting technique using expert opinion over multiple rounds.

✅ Final Answer: a – iii, b – iv, c – ii, d – i

The correct answer is a, c, and e. Here’s why:

Explanation:

• a. An organisational charter of core values and principles:

  • A vision statement often reflects the core values and principles of the organization. These are foundational beliefs that guide the behavior of the company and shape its future direction. Therefore, a vision should include these core values.

• c. The source of priorities, plans, and goals:

  • The vision provides the broad direction and purpose that shapes the organization’s priorities, plans, and goals. It serves as the basis for setting these priorities by helping guide decision-making in the future. The vision is essential for defining where the organization aims to go, and the goals are a means to achieve that future.

• e. A determination and publication of what makes an organisation unique:

  • The vision should reflect the organization’s uniqueness—what sets it apart from others in its industry or market. It helps in articulating the distinct values and aspirations that the company wants to be known for in the future.

Why the Other Options Are Incorrect:

• b. A strategy or plan and a view from the top:

  • The vision is more abstract and long-term. It’s not about specific strategies or plans, which are usually derived from the mission and more concrete actions. A vision provides broad guidance, not specific plans or strategies.

• d. A pusher into the future:

  • While a vision does guide and inspire, it is not explicitly termed as “a pusher into the future.” It’s more about defining the desired future state rather than pushing or forcing change.

Conclusion:

The correct answer is a, c, and e, because a vision statement should reflect the organization’s core values, shape its priorities, and define what makes it unique.

✅ Correct Answer: a, c and e only

📘 Explanation:
A retrenchment strategy is adopted by companies when they face difficulties or decline. The strategy involves reducing the scale or scope of operations in order to improve financial performance or survive in a tough environment. The reasons for pursuing a retrenchment strategy typically include:

• Better opportunities in the environment are perceived elsewhere (a) – Companies may focus on core competencies and exit underperforming areas.

• The environment is seen so threatening that internal strengths are insufficient to meet the challenge (c) – When external threats are significant, retrenchment allows firms to protect resources and avoid further losses.

• The firm is not doing well or perceives itself as doing poorly (e) – Retrenchment helps to address weaknesses and stabilize the company.

❌ Why the other options are incorrect:

• b. Its main strategic decisions focus on the conscious use of reversal grand strategies: This refers to a more specific reversal or turnaround strategy, which is different from retrenchment.

• d. It’s easier and comfortable to pursue retrenchment strategy: Retrenchment is typically a last-resort strategy and not necessarily an easy or comfortable choice.

✅ Final Answer: a, c and e only

✅ Correct Answer: Medium enterprise in manufacturing sector with an investment in plant and machinery of Rs 15 crores

✅ Explanation:
Udyog Aadhar registration (now replaced by Udyam Registration) is available only to businesses that fall within the defined limits for Micro, Small, and Medium Enterprises. The investment ceiling for medium enterprises in the manufacturing sector is Rs 10 crores.

An enterprise investing Rs 15 crores in plant and machinery exceeds this limit and is therefore not eligible for registration under the MSME framework.

❌ Why the other options are incorrect:

• Micro enterprise with Rs 20 lakhs investment: Fits within the limit for micro enterprises (up to Rs 25 lakhs for manufacturing).

• Small enterprise with Rs 3.5 crores investment: Within the small enterprise limit (up to Rs 5 crores for manufacturing).

• Small service enterprise with Rs 1.50 crores investment: Falls well within the small enterprise limit for services (up to Rs 2 crores).

✅ Final Answer: Medium enterprise in manufacturing sector with an investment in plant and machinery of Rs 15 crores

✅ Correct Answer: Actual production was less than the normal level of output

✅ Explanation: An unfavorable overhead volume variance occurs when the actual production level is less than the standard or normal production level. Since fixed overhead costs are allocated based on the expected level of output, when actual production falls short, the fixed overhead is under-applied. This means that the company is unable to absorb all of the fixed overhead, resulting in an unfavorable variance. In essence, fewer units are produced than expected, and the fixed overhead is spread over fewer units, increasing the cost per unit.

❌ Why the other options are incorrect:

• Total fixed overhead has exceeded the standard budgeted amount: This would be related to an overhead expenditure variance, not a volume variance. It reflects that actual overhead costs exceeded the budget, not the volume of production.

• Variable overhead per unit has exceeded the standard budgeted amount: This refers to a variable overhead cost variance (specifically a rate variance), not a volume variance. It is concerned with the rate or price of overhead, not the volume of production.

• Actual production was more than the normal level of output: This would result in a favorable overhead volume variance. More units produced than planned would absorb fixed overhead more efficiently, making the variance favorable.

✅ Final Answer: Actual production was less than the normal level of output.

✅ Correct Answer: Imported stress

✅ Explanation:
The standard categories of stress include:

• Acute stress – short-term stress that arises from specific events or situations.

• Chronic stress – long-term, ongoing stress resulting from persistent issues.

• Eustress – positive stress that can motivate and enhance performance.

Imported stress is not a recognized or standard category in psychological or organizational stress theories. It appears to be a distractor with no formal basis in stress research.

✅ Final Answer: Imported stress

✅ Correct Answer: Informal Micro Enterprises

✅ Explanation:
The Udyam Assist Platform (UAP), developed by SIDBI (Small Industries Development Bank of India), is aimed at informal micro enterprises. These are small, often unregistered businesses that operate outside the formal economic structure. The platform helps them transition into the formal sector by facilitating their registration under the Udyam Registration system. Once registered, these enterprises can access formal credit, government schemes, and other benefits that were previously unavailable to them due to their informal status.

❌ Why the other options are incorrect:

• Small Enterprises: Already eligible for Udyam Registration through standard procedures; UAP specifically targets those who are unregistered and informal.

• Medium Enterprises: Similarly, medium enterprises typically operate within the formal sector and don’t need the assistive features provided by UAP.

• Export Oriented Enterprises: While they may benefit from Udyam Registration, the UAP is not specifically designed for them; its primary goal is to formalize informal micro enterprises.

✅ Final Answer: Informal Micro Enterprises

✅ Correct Answer: a. Interpersonal relations, e. Salary

Explanation:

According to Herzberg’s Two-Factor Theory, there are two types of factors that influence job satisfaction and motivation:

1. Motivational factors (Satisfiers): These factors are related to the nature of the work itself and can lead to higher motivation and job satisfaction when present. Examples include:

   • Work itself (b)

   • Achievement (d)

   • Advancement (c)

2. Hygiene factors (Dissatisfiers): These factors are related to the environment or conditions in which the work is performed. Their absence can lead to dissatisfaction, but their presence does not necessarily lead to higher motivation or satisfaction. Examples include:

   • Interpersonal relations (a)

   • Salary (e)

✅ Final Answer: a. Interpersonal relations, e. Salary

✅ Correct Answer: a, b, d only

✅ Explanation:
These three factors—hollow talk, debilitating fear, and mindless reliance—are key obstacles that prevent managers from effectively implementing strategies and ensuring long-term sustainability:

• a. Hollow talk: Refers to empty communication or unfulfilled commitments, which damages credibility and erodes trust in leadership. When managers talk about change but don’t act, implementation suffers.

• b. Debilitating fear: Fear of failure, conflict, or making mistakes can paralyze decision-making. Managers who operate under fear often avoid taking necessary risks or making bold changes required for sustainability.

• d. Mindless reliance: This means blindly depending on established methods or tools without adapting to new circumstances. Such rigidity prevents innovation and hinders long-term success.

❌ Why the other options are incorrect:

• c. Complex measurement systems: While they may be a challenge, they don’t directly prevent implementation. With the right training and tools, these systems can be simplified or managed effectively.

• e. Constructive internal competition: This refers to healthy competition within an organization, which can boost performance and motivation. It typically enhances implementation and sustainability rather than obstructing them.

✅ Final Answer: a, b, d only.

The correct answer is Organizational effectiveness.

Explanation:

• Organizational effectiveness: This is a measure of how well an organization achieves its goals and objectives. It refers to the extent to which the organization is successful in fulfilling its mission, meeting its goals, and satisfying its stakeholders. It evaluates the appropriateness of the goals and how well these goals are being met.

• Organizational transparency: This refers to the openness of the organization in sharing information with its stakeholders. It is important for trust and accountability but does not directly measure how well goals are being achieved.

• Organizational citizenship: This concept refers to the voluntary behaviors and actions of employees that are beneficial to the organization but are not part of their formal job requirements. It’s about employees going beyond basic job expectations.

• Organizational efficiency: This refers to how well the organization uses its resources (like time, money, and labor) to achieve its goals. Efficiency is about doing things in the best possible way, with the least waste, but it does not necessarily measure how well the goals are being met or the appropriateness of the goals.

Conclusion:

Organizational effectiveness measures how well an organization is achieving its goals, making it the correct answer.

Correct Answer: b and d only

Details:

Key Differences:

1. Mean (μ vs. x):
   • In population variance, the mean is denoted as μ.
   • In sample variance, the population mean $\mu$ is replaced by the sample mean x.
2. Denominator (N vs. n−1):
   • Population variance uses the population size N in the denominator.
   • Sample variance uses n−1 (degrees of freedom) in the denominator to correct bias.

Evaluating the Options:

• Option a: Incorrect. μ ± 3σ is a population range, and x + (9*σ*σ) is not a standard replacement.
• Option b: Correct. The population mean μ is replaced by the sample mean x in sample variance.
• Option c: Incorrect. μ*u is not replaced by (μ*μ) / ((n−1)α)​.
• Option d: Correct. N (population size) is replaced by n−1 in the denominator for sample variance.
• Option e: Incorrect. The replacement involves n−1, not n−1−α.

✅Correct answer: Operating activities, investing activities and financing activities

✅ Explanation:

Ind AS 3 did exist in earlier drafts of the Indian Accounting Standards framework and was titled “Cash Flow Statements”.

However, it was withdrawn and replaced by Ind AS 7, which now governs the preparation and presentation of cash flow statements in India.

The guidance it offered is now fully covered under Ind AS 7 – Statement of Cash Flows. The Cash Flow Statement classifies cash flows into three major categories:

1. Operating Activities – cash flows from the core business operations (e.g., cash receipts from customers, cash paid to suppliers and employees).

2. Investing Activities – cash flows from the acquisition and disposal of long-term assets and investments (e.g., purchase/sale of property, plant, equipment).

3. Financing Activities – cash flows that result in changes in the size and composition of equity capital and borrowings (e.g., issuing shares, repaying loans).

This classification helps users of financial statements understand how the company generates and uses cash.

❌ Why the other options are incorrect:

• Cash receipts, cash disbursements and non-cash activities – This is not the classification used in Ind AS 7; also, non-cash activities are disclosed separately, not included in the cash flow statement.

• Direct cash flows and indirect cash flows – These refer to methods of preparing the operating activities section, not categories of cash flows.

• Operating activities, investing activities and collection activities – “Collection activities” is not a valid category in cash flow statements.

✅ Final Answer: Operating activities, investing activities and financing activities.

✅ Correct Answer: Marketing-related concentric diversification

📘 Explanation:
Marketing-related concentric diversification occurs when a company expands into new products or businesses that are related in terms of customer base, distribution channels, or marketing efforts, but not necessarily in technology or production processes.

In this case:

• The company is in the sewing machine business.

• It diversifies into kitchenware and household appliances.

• These products are sold through the same retail channels to similar family/household consumers.

This indicates that the marketing aspects (target market and distribution) are shared, while the technology behind the products is different.

❌ Why the other options are incorrect:

• Technology-related concentric diversification: There’s no indication that the sewing machine tech is used in kitchenware/appliances.

• Marketing and technology-related concentric diversification: The tech link is missing.

• Unrelated diversification: There’s a clear marketing connection, so it’s not unrelated.

✅ Final Answer: Marketing-related concentric diversification

✅ Correct Answer: Opportunity, Leadership

✅ Explanation:

Entrepreneurs are generally opportunity-obsessed, meaning they are constantly seeking and evaluating new opportunities to create value, solve problems, and meet market needs. At the same time, they are leadership-balanced, indicating they possess the leadership skills necessary to mobilize resources, inspire teams, and execute their vision effectively.

This combination ensures that while they are driven by the pursuit of innovation or market gaps, they also maintain the organizational and interpersonal balance required to lead ventures successfully.

❌ Why the other options are incorrect:

• Innovation, Risk: While entrepreneurs are innovative and willing to take risks, these traits don’t capture the dual focus of obsession and balance as accurately.

• Creativity, Innovations: Creativity is crucial, but “innovation” alone doesn’t represent the balancing factor of leadership.

• Profit, Creativity: Profit is an outcome, not typically what entrepreneurs are “obsessed” with from the outset; also, creativity does not equate to balance.

✅ Final Answer: Opportunity, Leadership

✅ Correct Answer: A is correct but R is not correct

✅ Explanation:

Assertion (A): Correct.
IFRS (International Financial Reporting Standards) and GAAP (Generally Accepted Accounting Principles, especially US GAAP) are indeed two major accounting frameworks. They represent different accounting philosophies and have historically been seen as competing systems for international acceptance, particularly as globalization of financial markets increased the need for standardized reporting.

Reason (R): Not Correct.
Indian Accounting Standards (Ind AS) are converged only with IFRS, not with GAAP. India chose to align its accounting standards with IFRS, making necessary adjustments for local economic and legal conditions (these are called carve-outs and carve-ins). GAAP, on the other hand, particularly US GAAP, is not the basis for Ind AS convergence.

✅ Final Answer: A is correct but R is not correct

✅ Correct Answer: b and c only

✅ Explanation:

Rural entrepreneurs face a unique set of challenges that stem largely from limited infrastructure, lack of exposure, and insufficient support systems. Among the options given, the most direct and pressing problems are:

• b. Inability to market their products and services
  Marketing is a major hurdle in rural areas due to poor connectivity, lack of branding skills, limited access to digital platforms, and low customer reach. This restricts the ability of rural entrepreneurs to grow and scale their businesses.

• c. Lack of comprehensive training on required skills
  Many rural entrepreneurs lack formal education or training in areas like finance, marketing, technology, and operations. Without skill development programs or entrepreneurial training, their ability to run a successful venture is limited.

❌ Why the Other Options Are Incorrect:

• a. Rate of interest charged by commercial banks is too high
  While interest rates can be an issue, many rural entrepreneurs struggle more with access to credit than with the interest rates themselves. Microfinance institutions and government schemes often provide concessional rates.

• d. Inability to handle cultural issues
  This is not a widespread or commonly cited problem. Most rural entrepreneurs are well-integrated within their local cultures and communities.

• e. Difficulty in opening bank accounts due to lack of documents
  Government initiatives like Jan Dhan Yojana and Aadhaar-linked services have significantly reduced this problem by simplifying documentation requirements.

✅ Final Answer: b and c only

✅ Correct answer: Okun’s law.

✅ Explanation:
Okun’s law describes the relationship between unemployment and economic growth. Specifically, it states that for every 1% increase in the unemployment rate, a country’s GDP will be roughly an additional 2% lower than its potential GDP. Thus, it directly connects extra unemployment to a larger loss in national output.

❌ Why the other options are incorrect:

• Sacrifice ratio: Refers to the cost of reducing inflation, not unemployment — it measures how much output must be sacrificed to reduce inflation by 1%.

• Phillips curve: Shows the inverse relationship between inflation and unemployment, not the relation between unemployment and GDP loss.

• Misery index: Is the sum of inflation and unemployment rates, used to indicate the economic well-being of a country, not directly related to GDP loss.

✅ Final Answer: Okun’s law.

✅ Correct Answer: a – i, b – iii, c – iv, d – ii

✅ Explanation:

Here’s the correct matching between emphases of Organizational Behavior (OB) and their related disciplines:

✅ Final Answer: a – i, b – iii, c – iv, d – ii

✅ Correct Answer: Let it go

📘 Explanation:

The 5 Core Principles of Kaizen are:

1. Know Your Customer – Focus on delivering value and quality to customers.

2. Go to Gemba – Observe and understand work processes directly at the source.

3. Let It Flow – Improve efficiency by streamlining processes and reducing waste.

4. Empower People – Encourage employees to contribute ideas and take ownership of improvements.

5. Be Transparent – Use data, visualization, and clear communication to track progress and ensure accountability.

✅ Final Answer: Let it go

Explanation:

• Snob effect occurs when consumers desire to own a product that is exclusive or rare, and they reduce their demand for it as more people consume it. This effect is driven by the desire to maintain uniqueness and exclusivity.

• Bandwagon effect is the opposite of the Snob effect. It happens when consumers increase their demand for a product as more people consume it, often because they want to be part of the group or trend.

• Veblen effect refers to a situation where higher prices increase the demand for a good because the good itself is seen as a status symbol.

• Substitution effect describes how a change in the price of a good can affect the demand for a substitute good. If the price of one product rises, consumers may switch to a cheaper alternative.

Therefore, the correct answer to your question is the Snob effect.

✅ Correct Answer:

• a. System approach → i. Emphasizes that decisions and actions taken in one organizational area will affect others and vice-versa

• b. Contingency approach → iv. Emphasizes that organizations are different and face different situations that require different ways of managing

• c. Quantitative approach → ii. Emphasizes on application of statistics, optimization models and computer simulations to management activities

• d. Weber’s ideal bureaucracy → iii. Emphasizes on career orientation, impersonality, authority hierarchy, division of labor, formal selection etc.

✅ Explanation:

• System Approach (a → i): Views the organization as a system composed of interrelated parts. Changes in one part affect others.

• Contingency Approach (b → iv): Suggests that no single management style works for all situations; management must adapt based on context.

• Quantitative Approach (c → ii): Involves mathematical models and analytical methods to improve decision-making.

• Weber’s Ideal Bureaucracy (d → iii): Describes a structured, rule-based form of organization emphasizing efficiency and fairness through hierarchy and formal rules.

✅ Final Answer: a → i, b → iv, c → ii, d → iii

✅ Correct Answer: a, c and d only

📘 Explanation:

✅ a. To reduce the number of predictor components

• True – This is the primary goal of dimension reduction methods like PCA and Factor Analysis: to reduce complexity while retaining most of the information.

✅ c. To provide a framework for interpretability of the results

• True – Especially in methods like Factor Analysis, interpretability is a key goal. Even in PCA, loadings can sometimes provide insight into variable groupings or latent factors.

✅ d. To help ensure that these components are independent

• Partially True – Here’s the subtlety:

  • In PCA, the components are constructed to be orthogonal (uncorrelated).

  • In Independent Component Analysis (ICA), components are made statistically independent.

  • So while not all dimension reduction methods guarantee full independence, many strive for it, and uncorrelatedness is often a key target.

Thus, option (d) is considered correct in this context, assuming the goal includes uncorrelated or independent components, depending on the method.

❌ Why other options are incorrect:

❌ b. To help ensure that these components are dependent

• Incorrect — This goes against the aim of methods like PCA and ICA, which seek uncorrelated or independent components.

❌e. To increase the number of predictor components

• Incorrect — The goal is to reduce, not increase, the number of predictors.

✅ Final Answer: a, c and d only

The correct answer is P > ATC.

Explanation:

In a competitive market, firms will enter the market if they expect to make a profit. The condition for this is when the Price (P) is greater than the Average Total Cost (ATC).

• P > ATC: This means that the firm’s total revenue from selling the good is greater than its total cost of production, so the firm is making a profit. If firms see existing firms in the market making profits, new firms will be incentivized to enter the market to take advantage of these profits.

• P < ATC: This means the firm is making a loss, as the price it can sell the good for is less than its average total cost. In this case, new firms would not enter the market, and existing firms may exit the market.

• P = MC: This condition refers to allocative efficiency, where the price of the good is equal to the marginal cost of production. This condition doesn’t necessarily signal profitability or the decision to enter a market; it’s about efficient resource allocation.

• P = MR = MC: This condition describes the equilibrium point for a perfectly competitive firm where price equals marginal cost (P = MC) and marginal revenue equals marginal cost (MR = MC). This condition is typically associated with a firm that is in the long-run equilibrium, where the firm is making zero economic profit. At this point, firms are neither incentivized to enter nor exit the market because they are earning just enough to cover their costs.

Conclusion:

A new firm will enter the market when P > ATC, as this indicates that existing firms are making a profit, which attracts new entrants to the market.

✅ Correct Answer: Accepting an incorrect hypothesis

📘 Explanation:

✅ Final Answer: Accepting an incorrect hypothesis

✅ Correct Answer: Statement I is correct but Statement II is incorrect

✅ Explanation:
Statement I is correct because in today’s competitive business environment, ethics are increasingly viewed as essential for long-term success. Ethical businesses tend to build stronger brand reputations, retain loyal customers, attract top talent, and avoid legal troubles — all of which contribute to sustainability and success.

Statement II is incorrect because an ethical organization is primarily identified by how it treats its stakeholders — including employees, customers, investors, suppliers, and communities. Ethical excellence is not just about performance metrics or corporate image; it’s grounded in transparency, fairness, and responsibility in stakeholder relationships.

❌ Why the other options are incorrect:

• Both Statement I and Statement II are correct: This is incorrect because Statement II misrepresents the foundation of ethical recognition.

• Both Statement I and Statement II are incorrect: Statement I is valid, so this is incorrect.

• Statement I is incorrect but Statement II is correct: Statement I is actually correct and Statement II is not.

✅ Final Answer: Statement I is correct but Statement II is incorrect.

✅ Correct Answer: a. Necessities, b. Substitutes, c. Luxury goods

✅ Explanation:

The term “positive elasticities” can refer to positive values of income elasticity of demand or cross-price elasticity of demand, depending on context. Here’s how each option fits:

✔ a. Necessities

• Income Elasticity of Demand: Positive, but less than 1 (0 < YED < 1)

• Demand increases with income, but not proportionally.
  ✅ Has positive elasticity.

✔ b. Substitutes

• Cross-Price Elasticity of Demand: Positive

• When the price of one good rises, demand for its substitute rises.
  ✅ Has positive elasticity.

✔ c. Luxury Goods

• Income Elasticity of Demand: Positive and greater than 1 (YED > 1)

• Demand increases more than proportionally with income.
  ✅ Has positive elasticity.

❌ d. Complementary Goods

• Cross-Price Elasticity of Demand: Negative

• Price increase of one leads to demand decrease of the other.
  ❌ Does NOT have positive elasticity.

❌ e. Inferior Goods

• Income Elasticity of Demand: Negative

• As income rises, demand falls.
  ❌ Does NOT have positive elasticity.

✅ Final Answer: a. Necessities, b. Substitutes, c. Luxury goods

✅ Correct Answer: Production scheduling

📘 Explanation:

A Gantt chart is a visual tool used to plan, schedule, and track specific tasks or activities over time. It is especially useful in production scheduling for the following reasons:

• It shows the start and end dates of tasks.

• It helps allocate resources effectively.

• It tracks progress in real time.

❌ Why other options are incorrect:

• Time Study: Focuses on measuring how long tasks take, not on scheduling them over time.

• Sales Forecasting: Involves predicting future sales trends, which uses statistical tools, not scheduling charts.

• Motion Study: Analyses movements to improve efficiency — again, not related to scheduling.

✅ Final Answer: Production scheduling

The correct answer is: Economies of Scope

Explanation:

• Economies of Scope refer to the cost savings that occur when a firm produces multiple products together rather than separately. It occurs because the firm can share resources, technology, and other capabilities across the production of different products, leading to lower costs.

• Economies of Scale refer to the cost advantages that a firm experiences as it increases its production scale of a single product, resulting in lower average costs per unit.

• Economies of Specialisation refer to the cost benefits derived from individuals or firms specializing in specific tasks or activities, improving productivity.

• Technical Efficiency refers to the ability of a firm to produce the maximum output with the given input, without wastage.

In the question, the cost savings when producing two or more products together are best explained by Economies of Scope.

✅ Correct Answer: a and e only

📘 Explanation:

✅ a. The total amount of work on a line is divided into different tasks.

• True. This is fundamental to line balancing, where work is split into discrete tasks to be distributed across workstations.

✅ e. Tasks are assigned to workstations that allow the work to be performed in a feasible sequence.

• True. Line balancing respects precedence constraints, ensuring tasks are assigned in logical order.

❌ Why other options are incorrect:

❌ b. Line balancing mainly ensures that each work station gets approximately equal amount of time.

• Not entirely true.

  • The goal is to meet the required cycle time and ensure balanced workload, but not necessarily that every station has exactly equal time.

  • Focus is more on efficiency and smooth flow, not perfect time equality.

❌ c. Cycle time is determined by the minimum time required at any workstation.

• False.

  • Cycle time is set based on demand rate and defines the maximum time any workstation should take — not the minimum.

❌ d. Line balancing is not useful for the process industry.

• False.

  • While more common in discrete manufacturing, line balancing principles can apply to process industries, especially in packaging and repetitive tasks.

✅ Final Answer: a and e only