- A medium enterprise is an enterprise where investment limit in plant and machinery is …………..
(a) Rs.7.5 crores
(b) Rs. 5 crores
(c) Rs. 10 crores
(d) Rs. 20 crores - The scope of MRTP Act, since 1992 has been confined only to the regulation of :
(a) Consumer monopolies
(b) Restrictive and unfair trade practices
(c) Restrictive Trade Practices
(d) Monopolistic Trade Practices - Which one of the following cannot be considered as one of the salient features of major changes announced in industrial policy on 24 July, 1991 ?
(a) Delicensing with certain exception
(b) Liberalisation of Foreign Investment and technological participation
(c) Effective promotion of small industries widely dispersed in rural areas and small towns
(d) Scraping of MRTP regulation pertaining to concentration of economic power - Which one of the following is not a technique of environmental analysis ?
(a) Verbal or written information
(b) Spying
(c) Networking
(d) Forecasting and formal studies - Which of the following factors should not be considered in a make or buy decision ?
(a) Potential use of manufacturing capacity
(b) Variable cost of production
(c) Potential rental income from space occupied by production area
(d) Uncharged fixed cost - A budget that gives a summary of all the functional budgets and a projected profit and loss account is known as ……….
(a) Master Budget
(b) Capital Budget
(c) Flexible Budget
(d) Fixed Budget - Which of the following is not a responsibility center ?
(a) Expense center
(b) Profit center
(c) Investment center
(d) Control center - Which of the following methods of depreciation is recognized for income tax purposes ?
(a) Straight line method
(b) Annuity method
(c) Written down value method
(d) Revaluation method - If the cross elasticity of demand for two goods is negative, then they are :
(a) Complements
(b) Substitutes
(c) Luxuries
(d) Consumer goods - Other factors remaining unchanged,if the income of the buyer increases,his budget/price line will :
(a) Shift backwards to the left
(b) Remains unchanged
(c) Shifts upwards to the right
(d) Becomes vertical - Which of the following formulas can be used to calculate Marginal Utility (MU) ?
(a) TU/N
(b) TU – AU
(c) AU × N
(d) TUn – TUn–1 - When the marginal cost (MC) of a firm is rising, it will :
(a) pull the average cost (AC) up
(b) push the AC down
(c) split the AC
(d) leave the AC unaffected - To test whether the two population means are equal we use ……….. test.
(a) t
(b) F
(c) Chi square
(d) Kolmogorov-Smirnov - Sampling distribution of a statistic will be approximately normal when the sample size is …………
(a) Small
(b) Large
(c) Sufficiently large
(d) Optimum - In a pie diagram, 5 percent is equal to ………… degree angle.
(a) 3.0
(b) 4.5
(c) 9.0
(d) 18.0 - The standard deviation of a binomial distribution is …………
(a) np
(b) npq
(c) npq
(d) 2 2 np q - ………………. is not a component of planning.
(a) Policy
(b) Programme
(c) Delegation of authority
(d) Tactic - …………. is a step in the process of controlling.
(a) Decentralization of Authority
(b) Setting standard
(c) Determining span of control
(d) Developing feedback control - .. ………. is not a part of the organisational structure.
(a) Committee
(b) Matrix organisation
(c) Informal organisation
(d) Centralization of authority - ………… is a part of the process of communication.
(a) Strategy formulation
(b) Policy formulation
(c) Decoding
(d) Situation identification - Selling concept focuses on the needs of sellers, while marketing concept focuses on the needs of …………
(a) Dealers
(b) Suppliers
(c) Buyers
(d) Distributors - A mass communication programme about a product or an organisation, for which no payment is made, is called as ………..
(a) Publicity
(b) Advertising
(c) Salesmanship
(d) Sales Promotional Schemes - Niche marketing refers to marketing of products and services to a ………….group of buyers.
(a) Large
(b) Small
(c) Substantial
(d) Diversified - Initially charging the high price and then gradually reducing the same after some time period, is called as ………….
(a) Skimming Pricing Policy
(b) Penetration Pricing Policy
(c) Uniform Pricing Policy
(d) Unique Pricing Policy - From the following details of project A, calculate pay back period.Cost of project ` 80,000, estimated scrap value ` 10,000, estimated cash inflow (savings) :`
1 year 16,000
2 year 24,000
3 year 24,000
4 year 24,000
5 year 12,000
(a) 3 years, 8 months
(b) 3 years, 3 months
(c) 5 years, 8 months
(d) 5 years, 3 months - From the following information,calculate operating leverage :Sales Rs.00,000, contributionRs.1,00,000; fixed cost Rs.50,000,Earnings before interest and tax(EBIT) : Rs.50,000.
(a) 2
(b) 1
(c) 0.50
(d) 0.25 - Which one of the following is not used to estimate cost of equity capital ?
(a) External yield criterion
(b) Dividend plus growth model
(c) Equity capitalization approach
(d) Capital Asset Pricing Model(CAPM) - The debt policy of a firm is significantly influenced by the ………..
(a) Cost concept
(b) Cost consideration
(c) Cost capital
(d) Cost control - Working conditions are a part of :
(a) Job environment
(b) Job enlargement
(c) Job evaluation
(d) Job enrichment - Provisions relating to health and safety in industrial organisations are there in the ……………
(a) Industrial Disputes Act
(b) Workmen’s Compensation Act
(c) Factories Act
(d) ESI Act - Sound Human Resource Management requires understanding of n/PWR, n/AFF and n/ACH developed by :
(a) Skinner
(b) McClelland
(c) Adams
(d) Vroom - Which of the following is usually not an approach to on-the-job training ?
(a) Coaching
(b) Job rotation
(c) Planned progression
(d) Sensitivity training - By mobilizing savings and lending them as credit, banks act as :
(a) Capital Market
(b) Financial Intermediaries
(c) Forex Dealer
(d) Lender of last resort - Which among the following is incorrect ?
(a) RBI is the Bank of Issue
(b) RBI acts as Banker to the Government
(c) RBI is Banker’s Bank
(d) RBI is lender to the large industrial corporations - Basel II accord is mostly concerned with :
(a) Central Vigilance Commission
(b) Non-performing Assets
(c) Capital Adequacy Ratio
(d) Foreign Direct Investment - Banking Ombudsman means :
(a) A person appointed to recoverdues
(b) A person to whom customer can approach for redressal of his grievances
(c) A person appointed to settle disputes between employees and management
(d) A person appointed by RBI to oversee the functioning of foreign banks - Which of the following has the highest percentage share in Indian imports ?
(a) Petrol
(b) Gas
(c) Diesel
(d) POL (Petrol, oil and lubricants) - Special Drawing Rights are :
(a) International Reserve Assets
(b) Indian Regulatory Authority
(c) International Regional Assets
(d) Component of FDI - World Bank can grant loans to its member country up to :
(a) 10% of its share in paid up capital of World Bank
(b) 20% of its share in paid up capital of World Bank
(c) 30% of its share in paid up capital of World Bank
(d) 40% of its share in paid up capital of World Bank - Balance of trade takes into account :
(a) Only export and import of services
(b) Export and import of goods and services
(c) Export and import of capital
(d) Export and import of only merchandise goods - The marketing manager of a product line is the example of ………….
(a) Cost Center
(b) Revenue Center
(c) Investment Center
(d) Profit Center - Accounting Standard-16 is related with …………
(a) Segment reporting
(b) Amalgamation
(c) Borrowing cost
(d) Depreciation accounting - Which of the following risk area is not considered before venture capital financing ?
(a) Product risk
(b) Market risk
(c) Dividend risk
(d) Technological risk - Cartel is a type of ……………
(a) Vertical combinations
(b) Allied combinations
(c) Horizontal combinations
(d) Mixed combinations - When a right to purchase securities is acquired, it is known as …………
(a) Call option
(b) Put option
(c) Double option
(d) Option - Foreign equity includes ……..
(a) ADR’s (American Depository Receipts)
(b) Bonds
(c) Commercial Papers
(d) Gold bonds - The first mutual fund scheme in India was introduced by …………..
(a) Reserve Bank of India (RBI)
(b) State Bank of India (SBI)
(c) Unit Trust of India (UTI)
(d) Government of India - Market segmentation is a process of taking the total heterogenous market for a product and dividing it into several segments each of which tends to be …………. in all significance.
(a) Different
(b) Special
(c) Homogeneous
(d) Indigeneous - In sellers’ market situation, ……………dominate the decisions and activities in the market.
(a) Manufacturers and dealers
(b) Consumers
(c) Competitors
(d) Banks and Insurance Companies - Which of the following is not included in the micro-environmental factors ?
(a) Customers
(b) Dealers
(c) Competitors
(d) Other departments in the company - Out of the following which is not included as a personal factor influencing consumers’ buying behaviour ?
(a) Occupation
(b) Lifestyle
(c) Age
(d) Social group - Green products are those products which ………………
(A) are packed only in green coloured paper
(B) include raw materials in green colour only
(C) try to protect the environment
(D) are the products harmful to environment - Day to day buying of fruits and vegetables by the consumers indicates an example of …………buying behaviour.
(a) Variety seeking
(b) Complex decision-making
(c) Special
(d) Brand Loyal - For the distribution of toilet soaps ……………… distribution strategy is preferred.
(a) Intensive
(b) Selective
(c) Exclusive
(d) Inclusive - Which of the following is not the method of workers’ participation in management ?
(a) Co-partnership
(b) Profit-sharing
(c) Member on Board of Directors
(d) Bonus Scheme - Under whose plan workers who produce alone standards receive higher wages than those who produce below standards ?
(a) Fayol
(b) Taylor
(c) Follet
(d) Halsey-Rowan - . …………… is constructed/designed to discover interests, existing skills and potential for acquiring skills.
(a) Intelligence Test
(b) Proficiency Aptitude Test
(c) Vocational Test
(d) Personality Test - Which one of the following is not non-financial incentive ?
(a) Giving additional responsibility
(b) Creating a sense of achievement
(c) Granting recognition
(d) Declaring bonus - The blocking of goal-attainment is referred to as :
(a) Perception
(b) Goal congruence
(c) Frustration
(d) Dissonance - Instead of searching for the perfect or ideal decision, managers frequently settle for one that will adequately serve their purpose. In Simon’s terms, they :
(a) Optimise
(b) Maximise
(c) Satisfice
(d) Actualise - The following are the basic human needs mentioned by Maslow :
(i) Physiological needs
(ii) Esteem needs
(iii) Security needs
(iv) Self-actualisation needs
(v) Affiliation needs
The ascending order of these as done by Maslow would be :
(a) (i), (ii), (iii), (v), (iv)
(b) (i), (iii), (v), (ii), (iv)
(c) (i), (v), (ii), (iv), (iii)
(d) (i), (iii), (iv), (v), (ii) - In Indian context TRIPS will have its greatest impact on :
(a) Automobile
(b) Banking and insurance
(c) Pharmaceuticals
(d) Aviation - Which of the following is not agreed upon by members of WTO ?
(a) Observance of minimum labour standard
(b) Protection of Intellectual Property Rights
(c) Dispute Settlement Mechanism
(d) Agricultural Subsidies - Which of the following was established to help and finance world’s less developed countries ?
(a) IMF
(b) IBRD
(c) IDA
(d) RBI - Which of the following is not a major trading partner of India ?
(a) UAE
(b) China
(c) Germany
(d) Finland - Global depository receipts are issued by :
(a) America
(b) Depository Country
(c) Depository Bank
(d) Investors - Removal of restrictions on payments relating to import and exports of goods, services and factor income is called as :
(a) Trade Liberalism
(b) Free Trade
(c) Current Account Convertibility
(d) Trade Promotion - SAFTA is related to :
(a) UN
(b) EU
(c) SAARC
(d) ASEAN - Under Income Tax Act 1961 a status of foreign University having campus in India is …………
(a) Company
(b) Association of Person
(c) Artificial Judicial Person
(d) Trust - Which of the following allowances is fully exempted under the Income Tax Act, 1961 ?
(a) Travelling allowance
(b) Conveyance allowance
(c) Hostel allowance
(d) Uniform allowance - Maximum deduction u/s 24 of Income Tax Act 1961 in respect of interest on borrowed capital for repairs of the house property is restricted to …………..
(a) Rs. 30,000 p.a.
(b) Rs. 1,50,000 p.a.
(c) Rs.2,00,000 p.a.
(d) Rs. 50,000 p.a. - Long-term capital gain taxable in the hands of an individual assesses at the rate of ……………
(a) 20%
(b) 15%
(c) 25%
(d) Relevant slab rates - Due date of filing return of income by a non-corporate assesses having tax audit is …………..
(a) 30th June of the relevant Assessment Year
(b) 31st July of the relevant Assessment Year
(c) 30th Sept. of the relevant Assessment Year
(d) 31st Oct. of the relevant Assessment Year - Suppression of Income is an example of ………….
(a) Tax Planning
(b) Tax Avoidance
(c) Tax Exemption
(d) Tax Deduction - Rate of tax deducted at source for interest on fixed deposits exceeding Rs.10,000 for the assesses not providing Permanent Account Number is ………….
(a) 10%
(b) 20%
(c) 30%
(d) relevant slab rate of taxAnswer Key
1 (c) 2 (c) 3 (c) 4 (c) 5 (c) 6 (a) 7 (d) 8 (c) 9 (a) 10 (c) 11 (d) 12 (a) 13 (a) 14 (c) 15 (d) 16 (c) 17 (c) 18 (b) 19 (d) 20 (c) 21 (c) 22 (a) 23 (b) 24 (a) 25 (a) 26 (a) 27 (c) 28 (b) 29 (a) 30 (c) 31 (b) 32 (d) 33 (b) 34 (d) 35 (c) 36 (b) 37 (d) 38 (a) 39 (b) 40 (d) 41 (b) 42 (c) 43 (c) 44 (c) 45 (a) 46 (a) 47 (c) 48 (c) 49 (a) 50 (d) 51 (d) 52 (c) 53 (a) 54 (a) 55 (d) 56 (b) 57 (b) 58 (d) 59 (c) 60 (c) 61 (b) 62 (c) 63 (a) 64 (c) 65 (d) 66 (c) 67 (c) 68 (c) 69 (c) 70 (d) 71 (a) 72 (a) 73 (c) 74 (b) 75 (b)