AUG - 51211/II

Management
Paper II
Time Allowed : 75 Minutes] [Maximum Marks : 100
Note : This Paper contains Fifty (50) multiple choice questions, each question
carrying Two (2) marks. Attempt All questions.

1. The most appropriate measure of a 3. Which of the following economists is

countrys economic growth is its : credited with developing Modern

Monetary Economics ?
(A) GDP
(A) Adam Smith
(B) NDP
(B) J.B. Say
(C) NNP
(C) Milton Friedman

(D) Per capita real income (D) Marshall

2. If the demand for a commodity 4. Through which of the following

is ........................., the entire burden policies, do authorities maintain

of Indirect Tax will fall on the control over the supply of money for

the realization of general economic

consumer.
objectives ?
(A) Relatively inelastic
(A) Fiscal Policy
(B) Perfectly inelastic
(B) Exim Policy

(C) Perfectly elastic (C) Trade Policy

(D) Relatively elastic (D) Monetary Policy

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5. Capital gains tax is the example 7. Organizational commitment is an

of : example of :

(A) Proportional Tax (A) Job satisfaction

(B) Indirect Tax (B) Work attitude

(C) Regressive Tax (C) Personality

(D) Direct Tax (D) Perception

6. Assistant Manager, after observing 8. Group dynamics is the systematic

the style of conducting a meeting of study of :

Senior Manager on number of

(A) the forces operating outside the

occasions started conducting the

organisation

meeting in similar manner is an

(B) the forces operating within the
example of :
group

(A) Classical conditioning

(C) the forces operating between

(B) Social learning

management and union

(C) Insight learning

(D) the forces operating between

(D) Operant conditioning suppliers and customer

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9. Participative leadership : 11. Human Resource Management is

(A) dictates the terms primarily concerned with :

(B) asks for and uses suggestions (A) Sales

from subordinates (B) Dimension of People

(C) gives free-hand to the (C) External Environment

subordinates (D) Internal Environment

(D) supports subordinates 12. Human Resource Planning is the

10. Conflict is a : process of :

(A) Natural disagreement arising (A) Managing people at work

between two people (B) Stimulating people to work

(B) Disliking for each other effectively

(C) Lack of understanding of one (C) Getting maximum out of

party employee

(D) Lack of understanding of the (D) Demand and supply forecasting

problem of manpower

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13. By-product of Job Analysis are : 15. Management Development

Programmes are required :

(A) Job Enrichment and Job

Evaluation (A) to increase production

(B) to increase effectiveness and

(B) Job Description and Job
personality of a manager
Specification

(C) to increase morale

(C) Job Rotation and Job Transfer

(D) to increase team work

(D) Job Satisfaction and Job
16. Green shoe option refers to :
Specification

(A) Options issued by a company

14. The training analysis is required
engaged in shoe business
to :
(B) Options issued by company
(A) Find out the training needs
engaged in green marketing

(B) Find out additional requirement

(C) Option of allocating shares in
of manpower
excess of shares included in

(C) Find out working problems public issue

(D) Maintain industrial democracy (D) Option of issuing debentures in

at work place of equity

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17. Which of the following statement 19. Which of the following statement is
is true ? true ?

(A) The degree of operating (A) Retained earnings do not have

leverage is a measure of explicit cost, they carry implicit
financial risk cost
(B) The degree of financial leverage
(B) Cost of debt is higher than cost
is a measure of business risk
of equity
(C) The EBIT level at which the
(C) Beta is a measure of
EPS is the same for two
unsystematic risk
alternative financial plans is
(D) The higher the corporate tax
known as the financial break-
even point rate, the higher is the cost of

debt
(D) At financial break-even point,
EPS is zero 20. Which of the following assumption

is not true in respect of Gordons

18. While comparing risk involved in
two capital budgeting projects with
different initial outlays, the suitable
measure is :
Model ?
(A) All investments are financed by
either equity or retained

(A) Standard deviation earnings

(B) Co-efficient of variation (B) The firm has perpetual life

(C) Co-efficient of correlation (C) Growth rate [g = br] is constant

(D) Beta (D) br > ke

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21. Which of the following is not true 23. Which of the following is not a
for vertical marketing system ?
generic strategy as given by Michael
(A) Improves operating efficiency
Porter ?
(B) Each function is performed at
(A) Overall cost leadership
the most advantageous position

in the channel (B) Focus

(C) Stresses the independence of

(C) Line Pruning
individual members
(D) Differentiation
(D) Is a tightly co-ordinated

distribution channel 24. When we practice ........................., we

22. Mr. X and Mr. Y both own woollen arrange for a product to occupy
sweaters and are currently shopping
a clear, distinctive and desirable
for two more sweaters. They both
place relative to competing products
have earlier prices in mind when

shopping for new ones. These prices in the minds of target consumers.

are termed as :
(A) Positioning
(A) Psychological prices
(B) Target segmenting
(B) Reference prices
(C) Re-positioning
(C) Price points

(D) Skimmed prices (D) Product distribution

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25. An organization with a ........................ 27. Shadow prices of economic resources

orientation assumes that the are given by :

customers will resist purchasing

(A) Optimal solution of Dual
products not deemed essential.
(B) Optimal solution of Primal
(A) Production concept
(C) Intermediate solution of Dual
(B) Marketing concept
(D) Intermediate solution of
(C) Societal concept
Primal
(D) Sales concept
28. Degeneracy in Linear Programming
26. Infeasibility in graphical solution
Simplex Solution is indicated by :
to Linear Programming Problem is

(A) Tie in the smallest positive ratio

caused by :

(A) Wrong objective function (B) Tie in the largest Cj-Zj value

(B) Conflicting constraints (C) No. of occupied cells is less than

(C) Absence of alternatives m + n 1

(D) Absence of non-negativity (D) No. of occupied cells is more

constraints than m + n 1

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29. Markov Analysis is not applicable 31. In order to find independence of

two variables which are attributes,

to :
the following test is most appropriate

(A) Brand Switching test :

(A) t test
(B) Brand Positioning

(B) Z test
(C) Maintenance Management
(C) F test
(D) Accounts Receivables
(D) Chi-square test

30. In a decision tree model, when the 32. In cluster sampling, the clusters are

result of taking a decision is so formed as :

(A) The units in the cluster are as

uncertain, then the result is
homogeneous as possible
represented by :
(B) The units in the cluster are as

(A) A line heterogeneous as possible

(B) A triangle (C) The clusters are heterogeneous

among themselves
(C) A square
(D) Some stratification factor may

(D) A circle be chosen

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33. If the value of r(Karl Pearsons 36. The mechanism whereby the
Correlation Coefficient) is = 0.1
organization seeks to earn a profit
then :
by selling its goods is known as :
(A) Only byx must be ve

(A) Competitive advantage

(B) Only bxy must be ve

(C) Both byx and bxy must be ve (B) Distinctive advantage

(D) Both byx and bxy must be +ve (C) Business model

34. If P(A) = 0.6, P(B) = 0.3,

(D) Competitive competence
P(A B) = 0.2, then P(A/B) is :

37. Diversification mainly allows a firm

(A) 0.1

to :
(B) 0.333

(C) 0.50 (A) Concentrate on a single

(D) 0.6607 business

35. Which of the following is not an

(B) Create excess resources
alternative hypothesis ?
(C) Use its resources more
(A) H1 : m m0
effectively
(B) H1 : m > m0

(C) H1 : m < m0 (D) Send its directors on foreign

(D) H1 : m = m0 tours

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38. Divestment strategy is pursued 40. Global Entry Strategies are not

based on :
when :

(A) Capacity of the shipping-line

(A) The industry is flourishing
normally used by a company
(B) Many takeovers have already
(B) Import Policy of the foreign
taken place
country

(C) The industry is in decline stage (C) Costs of manufacturing

(D) R&D is not adequate products abroad

(D) Requirement of companys

39. Differentiated business firms are
products in foreign markets
vulnerable to :
41. The person who introduced the term
(A) Diversification by rivals
entrepreneur was :

(B) Regulatory changes

(A) Peter Drucker

(C) High costs of R&D (B) J.S. Mill

(D) Low-cost competitors offering (C) Richard Cantillon

similar products (D) Schumpeter

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44. In case of SSIs, who said that small

42. Which is the key factor that
is beautiful ?
an entrepreneur should focus on,
(A) E.F. Schumacher
in ensuring survival of his
(B) Peter Drucker

enterprises ? (C) Mahatma Gandhi

(D) Azim Premji

(A) Profits
45. The transformation of an idea into
(B) Cash flow useful application is termed as :

(C) Margin (A) Creativity

(B) Invention
(D) Market Share
(C) Innovation

43. The idea that, Extra-ordinary (D) Syndication

individuals are the source of 46. Why should business be socially

responsible ?
entrepreneurial emergence, is put-
(A) To protect customers
forth by :
requirement

(A) McClelland (B) To increase reputation of the

company
(B) Schumpeter
(C) To protect and serve public
interest
(C) Weber
(D) To go for organisational
(D) Drucker development

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47. Which of the practice will not 49. Dependability, predictability and

create an ethical culture in an

faith are the three elements that
organization ?
constitute :
(A) Visible role models from an

organization (A) Values

(B) Clearly communicating ethical (B) Moral principles

expectations
(C) Trust
(C) Provide ethical training
(D) Justice
(D) Punishing whistle blowers

50. Corporate governance is the key :

48. In which corporate governance

model do financial institutions have (A) To the integrity of corporations

major say ?
(B) To increase profit
(A) American Model

(C) To motivate employees

(B) German Model

(C) Japanese Model (D) To implement government

(D) Indian Model policies

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ROUGH WORK

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ROUGH WORK

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