Professor Management Karnataka Question – 2016

    1. In an interview, a candidate receives higher rating if he is preceded by a mediocre, and gets lower rating if he is preceded by an intelligent. This type of rating error is
      (a) Halo effect
      (b) Stereotyping
      (c) Contrast effect
      (d) Situational effect
    2. According to Edward de Bono “Red hat thinking” represents
      (a) Factual or data Analysis
      (b) Feelings and intuition
      (c) Judgment and caution
      (d) Optimism
    3. Match the following :
      X  Y
      1. Sam Walton   i. Amazon
       2. Jeff Bejos  ii. Walmart
       3. Anita Roddick  iii. IKEA
      4. Ingvar Kamprad iv. The Body Shop

      (a) 1-iii, 2-iv, 3-i, 4-ii
      (b) 1-ii, 2-i, 3-iv, 4-iii
      (c) 1-i, 2-ii, 3-iii, 4-iv
      (d) 1-iv, 2-iii, 3-ii, 4-i

    4. The process where a third party persuades the disputants to come to an equitable adjustment of claims is called
      (a) Arbitration
      (b) Adjudication
      (c) Conciliation
      (d) Moderation
    5. A mandatory recommendation for a company to have the board of directors comprised of an optimum combination (not less than 50 percent) of executive and non–executive directors was by
      (a) Naresh Chandra Committee
      (b) Narayana Murthy Committee
      (c) Blue Ribbon Committee
      (d) Kumar Mangalam Birla Committee
    6. If, HUL is offering variants of Lux soaps as Strawberry and Cream, Purple Lotus and cream, Peach and Cream, Purple Lotus and International Lux in two sizes then the depth of Lux Soap in HUL`s product mix is HUL Version No3
      (a) 6
      (b) 8
      (c) 4
      (d) 2
    7. Which of the following is not a method of forecasting exchange rate volatility ?
      (a) Using the absolute forecast error as a percentage of the realized value.
      (b) Using the volatility of historical exchange rate movements as a forecast for the future.
      (c) Using a time series of volatility patterns in previous periods.
      (d) Deriving the exchange rate`s implied standard deviation from the currency option pricing model.
    8. Depreciation is considered in ___________ technique.
      (a) Accounting rate of return (ARR)
      (b) Net present value(NPV)
      (c) Internal rate of return(IRR)
      (d) Profitability index (PI)
    9. VaR is not enough to assess market risk of a portfolio. Stress testing is desirable because VaR
      (a) It helps in calibrating VaR model.
      (b) It helps as an additional risk measure.
      (c) It helps in assessing risks due to abnormal movement of market parameters.
      (d) It is used as VaR measure is not accurate enough./ VaR
    10. “Often the same firm that pioneer a product in its home market undertakes, FDI to produce a product for consumption in foreign markets” is a statement of ________ and belongs to ________ theory.
      (a) Adam Smith, Absolute advantage
      (b) Raymond Vernon, Product life cycle
      (c) Recardo, Comparative advantage
      (d) Porter, Strategic trade
    11. Who sustains temporary or permanent disablement while commuting to the place of work and vice versa is entitled for disablement benefit under section _____ of the ESI Act 1948. ________
      (a) 51A
      (b) 51E
      (c) 51C
      (d) 51D
    12. __________ is a combination of techniques pertaining to genes of the cells of humans, animals and plants. ________
      (a) Cell Engineering
      (b) Genetic Engineering
      (c) Mechanical Engineering
      (d) Business Process Reengineering
    13. Fair distribution of society`s benefits and burdens is known as
      (a) Social Justice
      (b) Compensatory Justice
      (c) Distributive Justice
      (d) Retributive Justice
    14. “An entrepreneur always reaches for change, responds to it and exploits it as an opportunity” is the statement of ”
      (a) M. S. Robert
      (b) Peter F. Drucker
      (c) C. J. Wex
      (d) J. R. Tulsian
    15. A contingent asset is a possible asset that arises from __________, the existence of which will be confirmed only by the occurrence or non–occurrence of one or more uncertain future events not wholly within the control of the enterprise.
      (a) Past events
      (b) Future events
      (c) Probable events
      (d) Non-probable events
    16. Overdraft as per cash book of B & Co. was Rs. 30,000. The credit side of bank column of cash book was undercast by Rs. 100. Interest on bank loanRs. 2,000 and bank charges of Rs. 575 were not recorded in cash book. Overdraft balance as per pass book should be
      (a) Rs. 32,675
      (b) Rs. 27,325
      (c) Rs. 28,675
      (d) Rs. 28,475
    17. Match the following :
      A B
      1. Portfolio Investment i. For use of company`s assets
      2. Foreign direct investment   ii. Tangible goods sent out of a country
       3. Licensing agreement  iii. Non-controlling interest on foreign operations
        4. Merchandise exports  iv. Controlling interest on foreign operations

      (a) 1-iv, 2-iii, 3-iv, 4-ii
      (b) 1-i, 2-ii, 3-iv, 4-iii
      (c) 1-iii, 2-iv, 3-i, 4-ii
      (d) 1-ii, 2-iii, 3-iv, 4-i

    18. GNP at market price – Indirect Taxes + Subsidies =
      (a) GDP at factor cost
      (b) GNP at factor cost
      (c) NNP at factor cost
      (d) Disposable income
    19. “Strategy as a pattern in streams of decisions and actions” is the statement of
      (a) Michael E. Porter
      (b) Henry Mintzberg
      (c) Yavitz
      (d) Peter F. Drucker
    20. __________ is a combination of Caps and Floors. _______
      (a) Interest rate corridors
      (b) Interest rate collars
      (c) Interest rate futures
      (d) Interest rate swaps
    21. Japan has a much more _________ culture than the United States, especially concerning the role of work groups.
      (a) Individualistic
      (b) Collectivist
      (c) Superior
      (d) Inferior
    22. _______ is mentioned in the Factories Act, 1948. _______
      (a) Annual leave with wages
      (b) Maternity leave
      (c) Casual leave
      (d) National and festival holidays
    23. Assume that activity `E` has the following times; Early start time = 7 days, Early finish time = 13 days, Late start time = 15 days, Late finish time = 21 days, which of the following statements is true about the activity `E` ?
      (a) Activity `E` takes 9 days to complete.
      (b) Activity `E` has a slack time of 8 days.
      (c) Activity `E` is on the critical path.
      (d) Activity `E` takes 8 days to complete.
    24. The fund which cannot be repatriated to their parent company by foreign subsidiaries is called
      (a) A black market fund
      (b) A government fund
      (c) A mutual fund
      (d) A blocked fund
    25. Maximum consumption p.m 600 kgs Minimum consumption p.m 400 kgs Average consumption p.m 450 kgs Lead time : Maximum 6 months Minimum 2 months Reorder quantity 1500 kgs Based on the above which following indicates the reorder level, the minimum stock level and average stock level respectively?
      (a) 3600 kgs, 1800 kgs and 2550 kgs
      (b) 3400 kgs, 1700 kgs and 2500 kgs
      (c) 3100 kgs, 910 kgs and 2600 kgs
      (d) 3650 kgs, 1750 kgs and 2700 kgs
    26. A major automobile manufacturing company had to recall several models from its line due to quality control problems that was not discovered with its random final inspection procedures. This is an example of
      (a) Beta Error
      (b) Type–I error
      (c) Type–II Error
      (d) Alpha Error
    27. Whistle blowing policy means
      (a) Outsiders reporting pertaining suspected frauds.
      (b) Insider(s) reporting pertaining to suspected frauds.
      (c) Both outsiders and insiders reporting pertaining to suspected frauds.
      (d) Government agencies reporting pertaining to suspected frauds.
    28. Equilibrium in Oligopoly Market is characterized by Oligopoly
      (a) P > AC and MR = MC/ P > AC
      (b) P = MR and AC = MC/ P = MR
      (c) P < MR and AC < MC/ P < MR
      (d) P = AC and MR = MC/ P = AC
    29. According to Chamberlain and Kuhan, the Government function of collective bargaining is to
      (a) Establish a set of rules based on bargaining agreements.
      (b) Establish industrial democracy in the enterprise.
      (c) Set boundaries for bargaining parties.
      (d) Establish a system of economic distribution based on the faint authorship of rules of employment relations.
    30. Which of the following is not the characteristics of Financial Accounting information ?
      (a) Historical in nature.
      (b) Factual in nature and therefore does not require judgement in its preparation.
      (c) Is based on evidence.
      (d) Enhanced by notes to accounts.
    31. Which one of the following is important in forecasting production ?
      (a) Environmental changes
      (b) Available capacity of machine
      (c) Disposable income of machine
      (d) Changes in the preference of the consumers
    32. Cartage Rs. 780 paid on machinery newly acquired was debited to carriage inward account. If this error located after preparation of trial then which of the following rectification entry is correct ?
      (a) Machinery A/c. Dr. 780 (Debit `) Carriage Inwards A/c. Dr. 780 (Debit `) To Profit & Loss Adj. A/c. 1,560 (Credit `)
      (b) Machinery A/c. Dr. 780 (Debit `) To Carriage Inwards A/c. 780 (Cedit `)
      (c) Suspense A/c. Dr. 1,560 (Debit `) To Machinery A/c. 780 (Credit `) To Carriage Inwards A/c. 780 (Credit `)
      (d) Carriage Inwards A/c. Dr. 900 (Debit `) To Machinery A/c. 900 (Credit `)
    33. In the short run production function, stage–II begins at the point
      (a) Of inflection of the total product curve.
      (b) Where average and marginal products are equal.
      (c) Where total product is at maximum.
      (d) Where marginal product is at maximum.
    34. Arrange the biggest markets for foreign exchange in successive order from the following : i. Singapore ii. New York iii. London iv. Tokyo
      (a) ii, iii, i, iv
      (b) iii, ii, iv, i
      (c) ii, i, iii, iv
      (d) iii, iv, ii, i
    35. Which of the following is most closely associated with the terms `Primary Trend`, `Intermediate Trend` and `Short–term Trend` ?
      (a) Candlestick chart
      (b) Dow theory
      (c) Jensen Index
      (d) Bar chart
    37. Which of the following describes the vertical job duties in order to give the worker more responsibility ?
      (a) Job Rotation
      (b) Job enlargement
      (c) Job enrichment
      (d) Job promotion
    38. According to Sec. 52K of the Industrial Disputes Act, 1947, which of the following is not a requirement to be qualified as an Industrial Dispute ?
      (a) Factum of a real and substantial dispute
      (b) Parties to the dispute
      (c) Location and the number of disputants
      (d) Subject matter of dispute
    39. R. Ltd. purchased equipment from P Ltd. for Rs. 50,000 on 1st April, 2009. The freight and cartage of Rs. 2,000 is spent to bring the asset to the factory and Rs. 3,000 is incurred on installing the equipment to make it possible for the intended use. The market price of Machinery on 30th April, 2010 is Rs. 60,000 and the accountant of the company wants to disclose the machinery at Rs.60,000 in financial statements. However, the auditor emphasizes that the machinery should be valued at Rs.55,000 (50,000 + 2,000 + 3,000) according to ________
      (a) Money Measurement principle
      (b) Historical cost concept
      (c) Full disclosure principle
      (d) Revenue recognition
    40. Zero Hedge Ratio means
      (a) Perfect hedge where the entire risk is eliminated through hedge.
      (b) Imperfect hedge where the entire risk is eliminated through hedge.
      (c) Cross hedge where the some risk is eliminated through hedge.
      (d) Straight hedge where the some risk is eliminated through hedge.
    41. A new machine costing Rs.2,75,000 was purchased by a company on 1 st April, 2011. Its useful life is estimated to be 5 years and scrap value at Rs. 25,000. The production units for the next 5 years are as follows :
      Year  Units
       2011–2012  10,000
       2012–2013  15,000
      2013–2014 35,000
      2014–2015 40,000
      2015–2016 50,000

      Depreciation for the years 2012–2013 & 2014–2015 will be ________ & ________.
      (a) Rs.16,667, Rs.8,333
      (b) Rs.25,000, Rs. 66,667
      (c) Rs.25,000, Rs.58,333
      (d) Rs. 66,667, Rs.83,333

    42. Forfeiting as a non–resource financing originated in __________ during _________ .
      (a) America, 1950s/1950,
      (b) Switzerland, 1950s/1950,
      (c) England, 1960s/1960,
      (d) France, 1940s/1940,
    43. Budapest Treaty on International recognition of micro organisms is concerned with
      (a) Patent procedure
      (b) Environment procedure
      (c) Competition procedure
      (d) Consumer procedure
    44. A bank requires a person to keep a fixed deposit while allotting him a locker. It is _______.
      (a) Anti–social agreement
      (b) Anti–competition agreement
      (c) Anti–economic agreement
      (d) Anti–political agreement
    45. Fixing the value of an employee depending upon his productivity, promotionability and retainability is the core of the ?
      (a) Certainty equivalent model
      (b) Stochastic reward valuation model
      (c) Human asset multiplier model
      (d) Present value of future earnings model
    46. According to Edstrom and Galbraith which one of the following is not a motive for international transfers ?  ?
      (a) Filling Positions
      (b) International Agreements
      (c) Management Development
      (d) Organizational Development
    47. Reverse action in retailing, involves.
      (a) Procure merchandise through e–sellers.
      (b) Procure private label merchandise.
      (c) Procurement through single source.
      (d) Producer action to procure merchandise.
    48. Liberalisation doesn`t include.
      (a) Abolishing individual licensing requirement in most of the industries.
      (b) Simplifying the procedures for imports and exports.
      (c) Freedom in deciding the scale of business activities.
      (d) Restrictions in fixing prices of goods and services.
    49. In India Sensex and Nifty are calculated on the basis of
      (a) Market Capitalization
      (b) Paid up capital
      (c) Free float market capitalization
      (d) Authorised share capital
    50. In developing an advertising program, marketing manager must always start by identifying target market and buyer motives. They can make the five major decisions, known as the five M`s. Which one of the following M`s is the right set of five M`s ? i. Matter ii. Mission iii. Memory iv. Media v. Mind Set vi. Money vii. Message viii. Measurement
      (a) i, ii, iii, iv, v
      (b) ii, iv, v, vi, vii
      (c) ii, vi, vii, iv, viii
      (d) iii, iv, vi, i, ii
    51. Given the minimum standards (cut-off points) price = 3, quality = 4, Ease of use = 3, which of the following computers would be chosen using the conjunctive decision rule ? < P >
      NEC IBM Compaq
      Price 4 5 2
      Quality 3 4 5
      Ease of Use 4 4 4

      (a) IBM
      (b) NEC
      (c) Compaq
      (d) IBM and Compaq

    52. Which of the following combinations of assumptions is unique of Capital Asset Pricing Model (CAPM) as compared to Arbitrage Pricing Theory (APT) ?
      i. Single period time horizon
      ii. Absence of taxes
      iii. Investors are risk averse
      iv. Perfect capital market and absence of transaction cost
      (a) i, ii and iii only
      (b) i and ii only
      (c) ii and iii only
      (d) i, ii and iv only
    53. Which one of following is not a dimension of Holistic Marketing ?
      (a) Internal marketing
      (b) Integrated marketing
      (c) Green marketing
      (d) Counter marketing
    54. Margin of safety is equal to
      (a) Actual sales × sales at breakeven point
      (b) Actual sales + sales at breakeven point
      (c) Actual sales ÷ sales at breakeven point
      (d) Actual sales – sales at breakeven point
    55. The goal of FTA is to _________ all tariffs between member countries. In addition each country maintains its _________ external tariff against non FTA countries.
      (a) Levy, different
      (b) Abolish, own
      (c) Abolish, low
      (d) Levy, own
    56. Which of the following is not a part of an organization`s global intermediate environment ?
      (a) Global supply chain
      (b) Global partners
      (c) Global institutions
      (d) Global suppliers
    57. In elaboration likelihood model, peripheral information processing is when ELM
      (a) Consumers pay significant attention to the persuasive arguments in a message and are less influenced by the images used and the emotional connection with the message.
      (b) Consumers pay some attention to the persuasive arguments in a message and also are influenced by the images used and the emotional connection with the message.
      (c) Consumers pay less attention to the persuasive arguments in a message, but influenced by the images used and the emotional connection with a message.
      (d) Consumers pay no attention to the persuasive arguments in a message and are less influenced by the images used and the emotional connection with the message.
    58. The government provides incentives to MSME for obtaining ISO 9001/ISO 14001/HACCP certification to the extent of
      (a) 75% of the expenditure, subject to a maximum of ` 75,000 in each case
      (b) 60% of the expenditure, subject to a maximum of ` 60,000 in each case
      (c) 90% of the expenditure, subject to a maximum of ` 75,000 in each case
      (d) 75% of the expenditure, subject to a maximumof ` 60,000 in each case
    59. If the price elasticity of demand for a product is equal to 0.5, then 10 percent decrease in price will
      (a) Increase quantity demanded by 5 percent
      (b) Increase quantity demanded by 0.5 percent
      (c) Decrease quantity demand by 5 percent
      (d) Decrease quantity demanded by 0.5 percent
    60. Which one of the following refers to the total accumulated value of foreign owned assets ?
      (a) Flow of FDI
      (b) Stock of FDI
      (c) Outflows of FDI
      (d) Inflows of FDI
    61. The number of allocated cells in the optimal solution of a transportation problem having `m` rows and `n` columns is
      (a) m + n – 1 or less
      (b) m + n – 1
      (c) m + n + 1
      (d) m – n + 1
    62. Successful service companies focus their attention on both their customers and their employees. Which of the following links `service firm`s profit` with employee-customer satisfaction ?
      (a) International Marketing
      (b) Service Profit chain
      (c) Interactive Marketing
      (d) Service differentiation
    63. The measure of forecast error that calculates the average of absolute difference between the actual and forecast over `n` periods of time is known as
      (a) Mean square error
      (b) Mean error
      (c) Mean absolute percentage error
      (d) Mean absolute deviation
    64. Important reason for employees Moonlighting is
      (a) To increase income.
      (b) To have different job profile.
      (c) Lack of Motivation.
      (d) Spare time for helping new employee.
    65. Employees State Insurance Act protects the interest of the employees against i. Sickness ii. Maternity iii. Temporary or Permanent Disablement iv. Loss of wages due to retrenchment
      (a) i, ii, iii
      (b) i, ii, iii, iv
      (c) i, iii, iv
      (d) ii, iii, iv
    66. Which of the following is not a feature of business environment ?
      (a) Relativity
      (b) Specific and general forces
      (c) Uncertainty
      (d) Static nature
    67. Which of the following is the best indicator of growth or decline of a business ?
      (a) Common size financial statement
      (b) Comparative financial statement
      (c) Ratio analysis
      (d) Trend analysis
    68. Average stock level can be calculated as
      (a) Minimum stock level + 1/2 of re–order level
      (b) Maximum stock level + 1/2 of re–order level
      (c) Minimum stock level + 1/3 of re–order level
      (d) Maximum stock level + 1/3 of re–order level
    69. The NBMSME is an apex body constituted to NBMSME
      (a) Support women entrepreneurship.
      (b) Rural entrepreneurship.
      (c) Encourage culture of productivity.
      (d) Advise the Government on all issues of MSME sector.
    70. Which of the following is Online Transaction Processing System (OLTP) ?
      (a) A system that captures and processes transactions.
      (b) A system that captures and process subsequently.
      (c) A real time system that captures and processes transactions immediately.
      (d) A system that process transactions through internet.
    71. The ability of an individual to distinguish between similar stimuli is called
      (a) Stimulus Generalization
      (b) Perceptual Generalization
      (c) Perceptual Discrimination
      (d) Sensory Discrimination
    72. McDonalds is deciding whether to expand into manufacturing kitchen equipment in China. At what level is this decision likely to be made ?
      (a) Business
      (b) Corporate
      (c) Functional
      (d) International
    73. The statement “Inflation is generally pro–cyclical” indicates which one of the following ?
      (a) Higher rate of inflation tends to proceed periods of high economic growth.
      (b) The rate of inflation tends to rise in periods of high economic growth and fall in periods of low economic growth.
      (c) Prices on an average rise in an economic expansion but fall after a business cycle peak.
      (d) More inflation results in less capacity utilization.
    74. According to the “Force Field Analysis” of Kurt Levin, change is the result of competition between
      (a) Internal and External forces
      (b) Micro and Macro forces
      (c) Strength and weakness
      (d) Driving and restraining forces
    75. As per Sec. 6 of Consumer Protection Act 1986, the objectives of the central council shall be to promote and _________ the rights of the consumers.
      (a) Preserve
      (b) Protect
      (c) Publish
      (d) Present
    76. In the Managerial Grid 9 × 9 Matrix developed by Blake and Mouton 9, 1 is authoritative type of leadership whereas 1, 9 is
      (a) Team Management
      (b) Country Club Management
      (c) Middle of the Road Management
      (d) Impoverished Management
    77. Arrange segmentation process given below in a successive order : i. Segment positioning ii. Marketing mix strategy iii. Needs–based segmentation iv. Segment attractiveness v. Segment `acid test` vi. Segment Identification vii. Segment profitability
      (a) i, ii, iii, iv, v, vi, vii
      (b) iii, vi, iv, vii, i , v, ii
      (c) ii, iv, vii, i , iii, vi, v
      (d) vii, iii, ii, v, iv, i, vi
    78. Emotional Labour refers to
      (a) Playing with the emotions of others to get the things done.
      (b) Xpressing organizationally desired emotions in the interactions.
      (c) Hiding the self.
      (d) Expressing what the other people want.
    79. A workman who is a member, of the executive or other, of a registered trade union connected with the establishment is called.
      (a) Badli workmen
      (b) Conciliation officer
      (c) Skilled labour
      (d) Protected workmen
    80. A bargaining which is based upon zero–sum game is called
      (a) Integrative bargaining
      (b) Principled bargaining
      (c) Distributive bargaining
      (d) Destructive bargaining
    81. __________ and __________ have played a major role in the development of corporate governance codes around the world. ________
      (a) The Cadbury code, the OECD principles
      (b) Anglo–Saxon code, Malaysian code
      (c) German corporate governance code, cromme code
      (d) Code of Best Practice of South Africa, triple bottom line code of South Africa
    82. When an employee does not feel an urgency for change or does not know how the change will affect him/her, the best strategy for an organization is ___________
      (a) Training
      (b) Coercion
      (c) Communication
      (d) Negotiation
    84. The number of products manufactured in a factory in a day is 3500 and the probability of defective pieces is 0.55, then the mean of Binomial Probability Distribution is
      (a) 1925
      (b) 6364
      (c) 63.64
      (d) 3500
    85. The strategy of Big Box retailers is placed to compete in the .
      (a) Emerging markets.
      (b) More developed markets.
      (c) Emerging markets and distribution efficiency to impact primary market.
      (d) Only developed markets and compete with other retailers.
    86. ‘Appreciative Enquiry’ is __________.
      (a) Psychological theory
      (b) Training method
      (c) Business etiquette
      (d) HR reporting
    87. In a tax environment, the cost of debenture to the issuing company will be
      (a) Lower than the cost of equity shares.
      (b) Higher than the cost of equity shares.
      (c) Higher than the cost of preference shares.
      (d) Equal to the cost of equity shares.
    88. Persons for whom a large proportion of their role involves constant international visits to foreign markets, subsidiary units, International projects and the like are called
      (a) Expatriates
      (b) Repatriates
      (c) Non–expatriates
      (d) Non–repatriates
    89. The organized process or set of steps that needs to be followed to develop an Information System is known as
      (a) Analytical cycle
      (b) Design cycle
      (c) Program specification
      (d) System development life cycle
    90. A reference group`s influence on buying behaviour is most closely related to
      (a) Growth of impulsive buying
      (b) Increase in leisure time
      (c) Desire for conformity
      (d) Desire for convenience
    91. The system which gives a preferential treatment to exports of less developed countries is called
      (a) GATT
      (b) GSP
      (c) UNCTAD
      (d) MFN
    92. Which of the following combinations comprise IHRM ?
      i. Conduct of people management in MNCs.
      ii. International transfer of employees.
      iii. Comparing the cultures of different countries.
      iv. Comparing the policies and practice across different countries.
      (a) i, ii & iii
      (b) i, ii, & iv
      (c) i & ii
      (d) i, iii & iv
    93. Which of the following accounts appear in the balance sheet of a business ?
      (i) Stock at the end of the financial year
      (ii) Stock at the beginning of the financial year
      (iii) Drawings
      (iv) Prepaid Rent
      (v) Interest received but not yet earned
      (a) Only (i) above
      (b) Both (i) and (iii) above
      (c) (  i), (iii), (iv) and (v) above
      (d) All (i), (ii), (iii), (iv) and (v) above
    94. When a firm advises its customers to mail their payments to special post office collection centers, the system is known as
      (a) Concentration banking
      (b) Lock box system
      (c) Playing the float
      (d) DEP analysis
    95. The concepts of present value and future value are
      (a) Directly related to each other.
      (b) Not related to each other.
      (c) Proportionately related to each other.
      (d) Inversely related to each other.
    96. Which of the following statements about arbitrage is correct ?
      (a) A risk averter will never arbitrage because of the risk involved
      (b) Arbitrage opportunity arises when profits can be made with low level of risk.
      (c) A risk averter will arbitrage because profits can be made with no risk and no investment.
      (d) A risk seeker loves to arbitrage because he or she is willing to pay a premium to buy risky assets.
    97. Indian Accounting Standards, notified by the Ministry of Corporate Affairs are in line with International Financial Reporting Standards, are known as
      (a) Ind AS
      (b) IAS
      (c) Ind FRS
      (d) AS
    98. Marketing Strategy that emphasizes price as the key to good value; operations run with tight cost control; development focused on cost reduction. Which of Porter`s Strategies is illustrated here ?
      (a) Differentiation
      (b) Differentiation focus
      (c) Cost focus
      (d) Cost leadership
    99. The following are the percentage of fat found in five samples of each of the two brands of baby food :
      A : 5-7 4.5 6.2 6.3 7.3
      B: 6.3 5.7 5.9 6.4 5.1

      Which of the following procedures is appropriate to test the hypothesis of equal average fat content in the two types of foods ?
      (a) Paired t–test with 5 d.f
      (b) Paired t–test with 10 d.f
      (c) Two sample t–test with 8 d.f
      (d) Sample t–test with 8 d.f

    100. A micro or small enterprise may be said to have become `sick` if there is an erosion in the net worth due to accumulated cash losses to the extent of
      (a) 50% of its net worth
      (b) 60% of its net worth
      (c) 75% of its net worth
      (d) 40% of its net worth

      Answer Key

      1 (c) 2 (b) 3 (b) 4 (c) 5 (d) 6 (b) 7 (a) 8 (a) 9 (c) 10 (b) 11 (b) or (c)  12 (b) 13 (c) 14 (b) 15 (a) 16 (a) 17 (c) 18 (b) 19 (b) 20 (b) 21 (b) 22 (a) or (b) 23 (b) 24 (d) 25 (a) 26 (c) 27 (b) 28 (d) 29 (a) 30 (b) 31 (b) 32 (b) 33 (b) 34 (b) 35 (b) 36 (a) 37 (c) 38 (*) 39 (b) 40 (a) 41 (b) 42 (b) 43 (a) 44 (b) 45 (b) 46 (b) 47 (*) 48 (d) 49 (c) 50 (c) 51 (a) 52 (b) 53 (d) 54 (d) 55 (b) 56 (c) 57 (c) 58 (a) 59 (a) 60 (b) 61 (b) 62 (b) 63 (d) 64 (a) 65 (a) 66 (d) 67 (d) 68 (a) 69 (d) 70 (c) 71 (d) 72 (b) 73 (b) 74 (d) 75 (b) 76 (b) 77 (b) 78 (b) 79 (d) 80 (c) 81 (a) 82 (c) 83 (c) 84 (a) 85 (c) 86 (b) 87 (a) 88 (c) 89 (d) 90 (c) 91 (b) 92 (b) 93 (c) 94 (b) 95 (d) 96 (c) 97 (a) 98 (d) 99 (c) 100 (a)

      ‘*’ Indicates ‘Grace Marks’