Andhra Pradesh (APPSC) Assistant Professor Commerce Question -2012

  1. EBIT-EPS analysis is done to determine
    (a) Leverage
    (b) Liquidity
    (c) Profitability
    (d) Financial stability
  2. Increase in financial leverage
    (a) Decrease probability of technical insolvency
    (b) Increase probability of technical insolvency
    (c) Increase liquidity
    (d) No impact on solvency
  3. Degree of combined leverage may be obtained as
    (a) DOL/DFL
    (b) DOL/DFL
    (c) DOL/DFL
    (d) DOL/DFL
  4. The concept of optimum firm is propounded by
    (a) EAG Robinson
    (b) Sargenet Florance
    (c) Pigou
    (d) Alfred Marshal
  5. A congregation or body of persons assembled at a particular time and place for economic purpose is known as
    (a) Firm
    (b) Plant
    (c) Industry
    (d) Church
  6. Lamp unit of HMT Ltd, Lamps division of Philips, Lamps plant of Bengal lamps together can be called as
    (a) Electrical Industry
    (b) Multiplant unit
    (c) A firm
    (d) Multi plant public sector unit
  7. When the marginal cost curve intersects with marginal revenue curve form down side, the firm is said to be in:
    (a) Equilibrium position
    (b) Optimum position
    (c) Representative position
    (d) Break even position
  8. The concept of “ Representative firm” is propounded by
    (a) Alfred Weber
    (b) EAG Robinson
    (c) Alfred Marshal
    (d) Sargeant Florance
  9. Concept of joint sector was introduced by the
    (a) S.C. Dutt committee
    (b) Ranga Rajan Committee
    (c) Narsinham Committee
    (d) Gadgil committee
  10. The extent of fall in sales after which the firm starts suffering any loss is indicated as
    (a) Profit margin
    (b) Margin of safety
    (c) P/V margin
    (d) Sales margin
  11. Other things beings equal, the impact of a reduction in variable expenses would be
    (a) Reduction in B – E sales
    (b) Increase in B-E sales
    (c) Reduction in fixed expenses
    (d) Reduction in sales
  12. Contribution /EBIT is a measure of
    (a) Cost volume profit relationship
    (b) Margin of safety
    (c) BEP
    (d) Degree of operating leverage
  13. The rate of return foregone on an alternate investment proposal is referred to as the
    (a) Implict cost of capital
    (b) Explicit cost of capital
    (c) Over all cost of capital
    (d) Risk cost of capital
  14. The cost of each source of capital is
    (a) Specific cost
    (b) Average cost
    (c) Weighted cost
    (d) Market cost
  15. The impact of tax deductibility of debt cost is
    (a) Cost of equity is reduced
    (b) Cost of debt is increased
    (c) Cost of retained earning is reduced
    (d) Cost of debt is reduced
  16. The cost of external equity would be different from share holders required rate of return
    (a) If issue price is same as market price
    (b) If issue price is at a premium equating it to market price
    (c) If issue price is different from the market price
    (d) If issue price is less than market price
  17. In capital expenditure decisions for a new project the appropriate criteria for selection would be
    (a) Simple average cost of capital
    (b) Weighted average cost of capital
    (c) Weighted average cost of incremental capital
    (d) Historical cost of capital
  18. Optimum size is one at which
    (a) Cost and revenue are equal
    (b) Earns normal profits
    (c) Minimum average cost per unit is achieved with maximum efficiency
    (d) Has fairly long life
  19. The process of withdrawing one’s stakes either in full or part by the government is called
    (a) Privatization
    (b) Disinvestment
    (c) Sales
    (d) Lease
  20. Representative firm is one which
    (a) Has a fairly long life
    (b) Has a fair success
    (c) Has normal access to internal and external economics
    (d) All the above
  21. Exporter’s grievance cell was set up under
    (a) EXIM policy 1987-92
    (b) EXIM policy 1992-97
    (c) EXIM policy 1997-2002
    (d) EXIM policy 2002-07
  22. When the municipalities delegate the job of cleaning the streets to private agencies, it is called
    (a) Operational strategy
    (b) Outsourcing the activities
    (c) Leasing
    (d) Privatization
  23. Which of the following can be used to compute working capital requirements?
    (a) Patents
    (b) Buildings
    (c) Goodwill
    (d) Raw materials
  24. A plant is
    (a) Owning and managing an establishment
    (b) A congregation or body of persons assembled at a time or place for economic purpose
    (c) Machinery
    (d) Group of plants
  25. Optimum size is not practically achievable because
    (a) The determinant factors change
    (b) Requires constant reconciliation of factors
    (c) Impacts of factors are varying in nature
    (d) All of above
  26. Weight loosing materials results in
    (a) Dispersal of industries
    (b) Attracting plant to source
    (c) Concentration of industries
    (d) No impact on location
  27. The father of administrative management is considered to be
    (a) Sargenat florence
    (b) Alfred waber
    (c) Fredric taylor
    (d) Hendry foyal
  28. State industrial policy aims at
    (a) Promotion of industries
    (b) Control of Industries
    (c) Regulation of industries
    (d) All of the above
  29. One of the identified distinction between managers and leaders is
    (a) Develop- innovate
    (b) Focus on structure- focus on people
    (c) Imitates – Maintains
    (d) Originates – Develops
  30. Fiedler’s contingency model of leadership effectiveness does not deal with
    (a) Member Relationship
    (b) Traits
    (c) Task structure
    (d) Power position
  31. Emerging transformational leaders follow
    (a) Inspiration
    (b) Management by exception
    (c) Laissez- faire
    (d) Management by objections
  32. Among the following which is not a generally accepted trait of leadership
    (a) Self- Discipline
    (b) High education
    (c) Integrity
    (d) Intelligence
  33. Which is not a quality of a good leader?
    (a) Inner drive
    (b) Mental maturity
    (c) Emotional Balance
    (d) Pushing followers
  34. Training is to operatives as development is to
    (a) Top and middle level managers
    (b) Sales personnel
    (c) Administrative personnel
    (d) Workers
  35. Emerging knowledge based organizations are characterized by
    (a) Network of specialists
    (b) Vertical division of labour
    (c) Knowledge workers replacing operatives
    (d) All of the above
  36. The impact of information and technology on organization has resulted in
    (a) Right sizing
    (b) Paper less revolution
    (c) Lesser interpersonal contacts
    (d) All the above
  37. Among the following which does not indicate a motivation process
    (a) Psysiological or psychological imbalance
    (b) Alleviation of need
    (c) Want satisfaction
    (d) Need restoration
  38. Which is not a work motivation approach?
    (a) X theory
    (b) Content theory
    (c) Process theory
    (d) Cognitive theory
  39. What does not represent a motivation process?
    (a) Valence-expectance
    (b) Job-satisfaction
    (c) Performance-satisfaction
    (d) Effort-reward-outcome
  40. Which is not a formal group?
    (a) Committee
    (b) Teams
    (c) Reference group
    (d) Department
  41. A factor not contributing to group effectiveness is
    (a) Valency
    (b) Proficiency
    (c) Task interdependence
    (d) Outcome interdependence
  42. One of the following is a measure of efficiency identify
    (a) No. of workers employed
    (b) Raw material consumed
    (c) Profitability
    (d) Power consumed
  43. According to one view, teams are said to differ from work group due to
    (a) Focused leadership role
    (b) Collective work products
    (c) Working together
    (d) Efficient meetings
  44. One of the following is a diseconomy of multi-plant units, identify
    (a) Economies of scale
    (b) Bulk purchase
    (c) Chain effect of wage revision of one unit
    (d) Inter plant transfer of goods
  45. The essential characteristic of planning is
    (a) Link between objective and achivement
    (b) Determination of objective
    (c) Deciding organizational variables
    (d) Deciding the tools to be used
  46. Organising is
    (a) Choosing among alternate courses of action
    (b) Determining staff to man position
    (c) Determining and grouping of activites
    (d) Motivating people
  47. When the location of two units is planned at one place, it is termed
    (a) Locational coupling
    (b) Split-Location
    (c) Duopoly
    (d) Joint venture
  48. Control mechanism intends to verify
    (a) Quantity and Quality
    (b) Cost
    (c) Time
    (d) Cost,Time, Quality and Quantity
  49. Which among the following is not an element of control process?
    (a) Setting basis
    (b) Correcting deviation
    (c) Measuring actual
    (d) Establishing relationship
  50. To make planning effective it is incorporated with
    (a) Accurate forecasting
    (b) Planning premises
    (c) Contingency planning
    (d) Standard planning
  51. Control may become ineffective if
    (a) It is flexible
    (b) It is uneconomical
    (c) It is not understandable
    (d) Deviations are expeditiously reported
  52. Settlement methods of dispute may be
    (a) Conciliation
    (b) Arbitration
    (c) Conciliation and arbitration
    (d) Negotiation
  53. Collective bargaining may be considered as a
    (a) Dispute prevention mechanism
    (b) Dispute elimination
    (c) Dispute creating mechanism
    (d) Dispute adjourning mechanism
  54. The legal machinery for settlement of disputes is
    (a) Labour courts
    (b) Conciliations
    (c) Arbitration
    (d) Negoriations
  55. When more number of agriculture workers are engaged than the number that more land can bear, interms of productivities, we say following is present?
    (a) Under employment
    (b) Full employment
    (c) Disguised unemployment
    (d) Structural unemployment
  56. Decentralisation is beneficial in?
    (a) Utilization of personal leadership
    (b) Uniformity in action
    (c) Facilitating growth and deversification
    (d) Avoiding duplication of efforts
  57. A private limited company
    (a) Allows free transfers of shares
    (b) Prohibits the transfer of shares
    (c) Restricts the transfer of shares, through conditions
    (d) Leaves it to the discreation of directors to permit transfer or not
  58. On which of the following counts decentralization differs from delegation
    (a) Dispersal of not only authority but also other facilities
    (b) Systematic delegation to enjoy autonomy
    (c) Concentration
    (d) Shifting of premises
  59. Congenial organization climate is said to exist when there is
    (a) Sell restraint and control
    (b) Co-ordinated approach
    (c) Mutual trust and help
    (d) All of the above
  60. Systems approach of organizations emphasizes
    (a) Vertical relationship
    (b) Lateral relationship
    (c) Horizontal relationship
    (d) Synergy
  61. Contingency approach of organization theory suggests that organization design be
    (a) Typical
    (b) Common
    (c) Tailor made
    (d) Firm
  62. Organisation chart is expected to disclose
    (a) Formal relationship
    (b) Informal relationship
    (c) Channels of formal authority
    (d) Relative authority
  63. Organisational conflict leads to
    (a) Creativity and innovation
    (b) Group cohesion
    (c) Tension
    (d) Teamwork
  64. Span of supervision deals with the problems of
    (a) Horizontal dimension
    (b) Vertical dimension
    (c) Lateral dimension
    (d) All the above
  65. Span of management is determined by
    (a) Capacity of supervisor
    (b) Capacity of subordinates
    (c) Degree of decentralisation
    (d) All of the above
  66. Authority involves
    (a) Subordinate – Subordinate relationship
    (b) Superior – Subordinate relationship
    (c) Superior – Superior relationship
    (d) All the above
  67. Power does not deal with
    (a) Informal command
    (b) Sense of obligation
    (c) Identification with the manager
    (d) Perceived dependence on a manager
  68. One of the following Act intended for controlling large industrial houses is repealed now. Identify?
    (a) SEBI Act
    (b) Sick Industrial Companies Act
    (c) Consumer Protection Act
    (d) MRTP Act 1969
  69. Delegation of authority is
    (a) A factor in a process of organizing
    (b) A base for decentralisation
    (c) Power to carry out responsibilities
    (d) All the above
  70. Which is not a principal of delegation
    (a) Parity of authority and responsibility
    (b) Delegation of responsibility
    (c) Maintenance of authority levels
    (d) Formal relationship among authority levels
  71. Effective delegation takes place through
    (a) ‘Not- invented- here policy
    (b) Tight Control
    (c) Love of authority
    (d) Lack of delegation
  72. Line authority is characterized by
    (a) Only downward authority
    (b) Only upward authority
    (c) Only lateral authority
    (d) Only advisory
  73. Staff authority is characterized by
    (a) Scalar principal
    (b) Direct line
    (c) Advisory
    (d) Functional
  74. One of the following is a propulsive industry form which industrialization spreads, identify
    (a) Bakery unit
    (b) Beed making unit
    (c) HMT Ltd.
    (d) Rice Mill
  75. Functional authority exists when
    (a) Line superior empowers staff the authority to act
    (b) Staff adviser transmits and recommends line manager
    (c) Staff are empowered to issue orders
    (d) All the above
  76. Line- Staff conflict can be resolved not by
    (a) Proper use of staff
    (b) Complete staff work only
    (c) Effective communication among line and staff
    (d) Proper coordination among line and staff
  77. A sugar manufacturing unit takes up the production of chocolats also: this is called
    (a) Vertical business
    (b) Diversification of business
    (c) Horizontal business
    (d) Conglomeration business
  78. T-Group training is an example of
    (a) Brain storming
    (b) Sensitivity training
    (c) Role playing
    (d) Management games
  79. Inductive method is used in explaining location theory by
    (a) Alfred Weber
    (b) Peroux
    (c) Sargent Florance
    (d) Alfred Marshall
  80. According to industrial policy statement 1991 a small scale unit is one
    (a) Which employs more 20 employees
    (b) Where capital investment is less than Rs. 5 lakhs
    (c) Where capital investments is less than 3 crores
    (d) Which is linked to another big unit
  81. Principal barriers to effective appraisal are
    (a) Halo effect
    (b) Raters bias
    (c) Central tendency
    (d) All of above
  82. The relationship between morale and productivity may be described, as having
    (a) Absolute relation
    (b) Some positive correlation
    (c) Some negative correlation
    (d) Directly proportional
  83. Which of the following is a private sector multiplant unit?
    (a) HAL
    (b) HMT
    (c) Reliance petrochemicals Ltd.
    (d) BHEL
  84. Morale is more associated with
    (a) Emotional aspects of individual on the job
    (b) Emotional aspects of groups on the job
    (c) Rational aspects of individual aspects
    (d) Jobenrichmants participation
  85. Semantic barriers in communication arises due to
    (a) Badly expressed message
    (b) Premature evaluation
    (c) Poor retention
    (d) No expression
  86. Grapevine is an example of
    (a) Formal communication
    (b) Informal communiaction
    (c) Written communication
    (d) Pictorial communication
  87. Stock turnover ratio is a
    (a) Liquidity ratio
    (b) Profitability ratio
    (c) Solvency ratio
    (d) Performance ratio
  88. Net worth of business means
    (a) Equity capital
    (b) Total assets
    (c) Total assets minus total outsiders liabilities
    (d) fixed assets minus current assets
  89. The flow of fund is said to have taken place when
    (a) Cash paid to creditors
    (b) Cash received from debtors
    (c) Machinery is purchased for cash
    (d) When a bill is discounted
  90. Contribution means
    (a) Sales less fixed cost
    (b) Fixed cost less profit
    (c) Fixed cost plus profit
    (d) Variable cost plus profit
  91. “ A budget designed to furnished budgeted costs for any level of activity actually attained” is called
    (a) Cash budget
    (b) Flexible budget
    (c) Master budget
    (d) Production budget
  92. Liquid liabilities include
    (a) Creditors only
    (b) Creditors and deptors
    (c) Creditors and unpaid expenses
    (d) Bills payable and bills receivables
  93. Which of the following item is not an operating expense?
    (a) Salary
    (b) Depreciation
    (c) Income tax
    (d) Lease rental
  94. The ability of a company to meet its short-terms obligations is known as
    (a) Liquidity
    (b) Solvency
    (c) Profitability
    (d) Trading on equity
  95. Marginal cost means
    (a) Additional cost
    (b) Fixed cost
    (c) Opportunity cost
    (d) Sunk cost
  96. Working capital is the excess of
    (a) Fixed assets over fixed liabilities
    (b) Fixed assets over current assets
    (c) Current assets over current liabilities
    (d) Current assets over fixed liabilities
  97. NPV and Profitability index methods give different results when
    (a) Investment differ
    (b) Investment are same
    (c) Period differs
    (d) Profitability differs
  98. Cost of retained earnings is calculated by taking
    (a) Opportunity cost
    (b) Explicit cost
    (c) Specific cost
    (d) Implicit cost
  99. In the context of share buy back option the method of calculating cost of equity is
    (a) Dividend approach
    (b) Dividend plus growth approach
    (c) Earnings approach
    (d) None of the above
  100. Pay back method is applicable in case of
    (a) Shortage of funds
    (b) Excess fund
    (c) Threat of new technology
    (d) Fund diversion
  101. 66Percent of the sick units become sick due to one of the following causes as per the RBI study group (Tiwari committee) Report
    (a) Marketing problems
    (b) MIs management
    (c) Power problems
    (d) Workers strikes
  102. Trade unions are______of workers to promote and protect the interest of workers through collective action. ( Tick the correct choice which can will the above blank)
    (a) Voluntary organizations
    (b) Government organizations
    (c) Industrial organizations
    (d) Compulsory organizations
  103. Defect of the trade union movement in India is
    (a) Loyal to workers
    (b) Full time paid officer
    (c) Poor finances
    (d) Multi unions and inter union rivalry
  104. Trade union movement gets strengthened through
    (a) Money investment
    (b) Reducing the numbers
    (c) Eliminating political interference
    (d) Employers
  105. The main cause of industrial disputes in India is
    (a) Discrimination of workers.
    (b) Indiscipline
    (c) Wages and allowances
    (d) Retrenchment
  106. Lock out is declared by
    (a) Workers
    (b) Law
    (c) Government
    (d) Employers
  107. Wage representing a standard of living for maintenance of health and decency is known as
    (a) Fair wage
    (b) Living wage
    (c) Real wage
    (d) Minimum wage
  108. Main objectives of national wage policy is not
    (a) To ensure minimum wage
    (b) To prevent exploitation of labour
    (c) To provide tax benefits
    (d) To Reduce wage differentials
  109. Social security scheme is not present in one of the following
    (a) Provident funds
    (b) Conciliations
    (c) Pension scheme
    (d) Gratuity scheme
  110. Unity, ability to negotiate, collective action, strength of information are the features of
    (a) Collective bargaining
    (b) Worker’s participation in management
    (c) Strike
    (d) Lobbying
  111. National rural employment guarantee program is started in the year
    (a) 1980
    (b) 2004
    (c) 1991
    (d) 1996
  112. Employment generation is not possible through
    (a) Economic infrastructure
    (b) Expansion of social infrastructure
    (c) Urbanization and dis investment
    (d) Financial year
  113. Employment guarantee as NREGP Refers to
    (a) Payment of Rs. 6,000 per family per year
    (b) Work Allocation
    (c) Unemployment allowance
    (d) Full employment
  114. The appropriate government has been empowered to appoint U/S 4 of the Industrial Disputes Act, 1947, a/an
    (a) Inspector
    (b) Conciliation officer
    (c) Health officer
    (d) Health inspector
  115. The appropriate government may constitute a court for enquiring into matter appearing to be connecting with or relevant to an industrial dispute, it is called
    (a) Health Inspector
    (b) Negoriator
    (c) court of inquiry
    (d) Commissioner
  116. The duty of works committee is
    (a) To endeavour to compose any material difference of opinion
    (b) To Allocate work
    (c) To give Wages
    (d) To allocate bonus
  117. When a worker absent himself without any information when he is scheduled to be present it is termed as
    (a) Turnover
    (b) Absenteism
    (c) Lay out
    (d) Labour mobility
  118. Causes for absenteeism in Indian does not include
    (a) Working conditions
    (b) High wages
    (c) Seasonal factors
    (d) Festivals
  119. Workers participation in management becomes more successful when
    (a) Workers do not have unions
    (b) Wherever the collective bargaining is weak
    (c) Pressure groups and negotiations are active
    (d) Workers and management trust each other and share complete information
  120. Balanced regional development does not seek to encourage
    (a) Location of industry
    (b) Concentration of industry
    (c) Dispersal of industries
    (d) Industrial in Backward areas
  121. One of the following cannot be discussed in workers participation in management
    (a) Wages and bonus for workers
    (b) Working conditions
    (c) Productivity improvement
    (d) Computerization of work
  122. One of the following cannot be a cause of unemployment in India in a given environment
    (a) High population
    (b) Lack of required skills
    (c) Frictional unemployment
    (d) Agricultural productivity
  123. “Union of workers of belonging to the same occupation is
    (a) Craft union
    (b) General union
    (c) Industrial union
    (d) Independent union
  124. Training is necessary for
    (a) New employees only
    (b) Existing employees only
    (c) New and existing employees
    (d) Employers only
  125. The relative worth or money value of a job is determined by
    (a) Job Analysis
    (b) Manpower Planing
    (c) Job Evaluation
    (d) Job enrichment
  126. A sound relationship between the employee and his job is established by a sound
    (a) Man power planning
    (b) Recruitment process
    (c) Training
    (d) Development
  127. Scientific method study is also known through
    (a) Motion study
    (b) Work simplification
    (c) Emotional study
    (d) Psychological study
  128. Time study is other wise known as
    (a) ABC analysis
    (b) Work measurement
    (c) Overtime
    (d) Work simplification
  129. Efficient management of incentives may results in
    (a) Less profit margin
    (b) More profit margin
    (c) No effect in profit
    (d) No profit margin
  130. Process layout is otherwise called
    (a) Product layout
    (b) Functional layout
    (c) Line layout
    (d) Factor layout
  131. Financial decision involve
    (a) Investments, financing and dividend decisions
    (b) Investments, financing and sales decisions
    (c) Financing, dividend and cash decisions
    (d) Sales, cash and investment decision
  132. Cost of capital comprises
    (a) Market risk
    (b) Financial risks
    (c) Business risks
    (d) Financial and business risks
  133. A high BEP would indicate a
    (a) High financial leverage
    (b) Low financial leverage
    (c) High operating leverage
    (d) Low operating leverage
  134. Over capitalization is indicated by
    (a) High proprietary ratio
    (b) Low proprietary ratio
    (c) High Debt to equity ratio
    (d) Trading on equity
  135. The cost of capital of the firm is
    (a) Minimum rate of return
    (b) Maximum rate of return
    (c) Normal rate of return
    (d) No rate of return
  136. Which one of the following is connected with cash management?
    (a) EOQ
    (b) NET float
    (c) Idle time
    (d) Trade discount
  137. Trading on equity is a situation where ROI is
    (a) More than cost of debt
    (b) Less than cost of debt
    (c) Equals cost of debt
    (d) Nothing to do with debt
  138. EBIT level at which EPS remain the same irrespective of the debt-Equity mix is termed as
    (a) Break even point
    (b) Critical point
    (c) Point of indifference
    (d) Optimum point
  139. Arbitrage process is the operational justification for
    (a) Relevance model
    (b) Irrelevance model
    (c) Traditional model
    (d) Operational model
  140. The term ‘funds’ as used in funds flow statement is
    (a) Current assets
    (b) Cash
    (c) Working capital
    (d) Current liabilities
  141. Which of following is the source of fund?
    (a) Purchase of machinery
    (b) Profit earned
    (c) Issue of share capital
    (d) Loan raised
  142. Depreciation of machinery is
    (a) Source of fund
    (b) Application of fund
    (c) Both a and b
    (d) None of the above
  143. Period costs are other known as
    (a) Variable costs
    (b) Fixed costs
    (c) Semi-variable cost
    (d) Marginal costs
  144. Contribution margin is also known as
    (a) Gross profit
    (b) Net income
    (c) Marginal income
    (d) Average profit
  145. The basis difference between Absorption costing and marginal costing can be traced by looking into
    (a) Sales
    (b) Fixed cost
    (c) Variable cost
    (d) Marginal cost
  146. The first step in preparing a Budget is
    (a) Cost estimation
    (b) Sales forecast
    (c) Production forecast
    (d) Working capital
  147. In the long term financial analysis the stress is on
    (a) Working capital
    (b) Earning potential
    (c) Stability of earning potential of the concern
    (d) Liquidity position of the firm
  148. Discounted cash flow is a Technique of
    (a) Cash flow analysis
    (b) Cash management
    (c) Capital Budgeting
    (d) Cost of capital
  149. Statistical Quality Control is a part of
    (a) Materials management
    (b) Production management
    (c) Marketing management
    (d) Personnel management
  150. Which one of the following is correct?
    (a) Location precedes layout
    (b) Layout precedes location
    (c) Both are concurrent
    (d) Both conflicting each other