UGC NET

Management (Paper - II)

Question Paper with Ans Key - July 16

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 Management Paper - II (July 2016)

Management
Question Paper (July 2016)

Time : 1¼ hours Paper-II Maximum Marks : 100

Note : This paper contains fifty (50) objective type questions, each question carries two (2)
marks. Attempt all the questions.

1. The following is the demand function :

Q = 100 – 5P
What will be the point price elasticity of demand at price ` 10 ?
(A) 2.00 (B) 1.00
(C) 0.85 (D) 0.50

2. The short-run cost function of a firm is as under :

TC = 200 + 5Q + 2Q2
What will be the level of output at which AC and MC will be equal?
(A) 20 (B) 15
(C) 10 (D) 5

3. Match the items of List-I with the items of List-II and select the code of correct matching :
List-I List-II
a. Sales Revenue Maximization i. Williamson’s Model
b. Maximization of a firm’s growth ii. Cyert-March Hypothesis
rate
c. Maximization of Managerial iii. Baumol’s Theory
Utility function
d. Satisficing behaviour model iv. Marri’s Theory
Codes :
a b c d a b c d
(A) iii iv i ii (B) i ii iv iii
(C) ii iii i iv (D) iv iii ii i

4. Assertion (A) : The perceived risk of operating a domestic firm in international environment is
much higher.
Reason (R) : The international environment is more volatile and the domestic firm generally does
not have full information about the environment.
Codes :
(A) Both (A) and (R) are correct (B) Both (A) and (R) are incorrect
(C) (A) is correct while (R) is incorrect (D) (A) is incorrect while (R) is correct

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 Management Paper - II (July 2016)

5. Statement – I : The accept-reject approach is adopted generally when a firm has a large amount
of funds to invest in several projects at the same time.
Statement – II : Both the NPV and the IRR methods of investment appraisal are based on
discounted cash flow approach.
(A) Both the statements are correct
(B) Both the statements are incorrect
(C) Statement – I is correct while Statement – II is incorrect
(D) Statement – I is incorrect while Statement – II is correct

6. Which process is used by a person (perceiver) to deal with conflicting messages, and conflicting
data?
(A) Halo effect (B) The process of checking
(C) Perceptual defence (D) The process of reacting

7. Assertion (A) : The physiological needs are essential for living but they are determined by social
environment.
Reason (R) : These needs may be motivators in backward countries but in a developed country,
these needs are supposed to be satisfied, hence, they may not be considered motivators.
Codes :
(A) Assertion (A) and Reasoning (R), both are correct, but (R) is not right explanation of (A)
(B) Assertion (A) and Reasoning (R), both are correct, and (R) is correct explanation of (A)
(C) Assertion (A) is correct, whereas Reasoning (R) is incorrect
(D) Reasoning (R) is correct, whereas Assertion (A) is incorrect

8. The basic emphasis of _________ theory of organisational design is on flat structure,

decentralization and provision of informal organisation.
(A) Neo-classical theory (B) Modern theory of systems approach
(C) Matrix organisation theory (D) Classical theory

9. The result variables as the component of mathematical model for measuring system’s effectiveness
and efficiency in management science include ________.
(A) Measures of performance (B) Measures of effectiveness
(C) Payoffs and outcomes (D) All the above

10. Assertion (A) : Reinforcement plays a central role in the learning process.
Reason (R) : Reinforcement strengthens the response preceding it and induces repetitions of
the response.
Codes :
(A) Both (A) and (R) are correct
(B) (A) is correct and (R) is the right explanation of (A)
(C) (A) is correct but (R) is incorrect
(D) Both (A) and (R) are incorrect

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 Management Paper - II (July 2016)

11. Most job descriptions contain sections that cover –

(A) Responsibilities and duties (B) Job summary
(C) Working conditions (D) All of the above

12. Match the items of List-I with the items of List-II. The items relate to evaluation and follow-up
of training process.
List-I List-II
a. Results i. Document the learner’s immediate response
to the training.
b. Learning ii. Note supervisor’s reactions to learner’s
performance
c. Reaction iii. Use feedback devices or pre and post tests
to measure what learners have actually
gained.
d. Behaviour iv. Determine the level of improvement in job
performance
Codes :
a b c d a b c d
(A) iii ii i iv (B) iv iii i ii
(C) i ii iii iv (D) iv i iii ii

13. What one of the following processes allows top management to diagnose the management
styles of supervisors, identify potential, employee problems, and take corrective action with
individual supervisors as necessary?
(A) MBO (B) Strategic performance appraisal
(C) Organization Development (D) Upward feedback

14. Statement – I : In competency or skill-based pay, employees are paid for the range, depth and
types of skills and knowledge they are capable of using rather than for the job they currently
hold.
Statement – II : Broadbanding results into increase in salary grades and ranges from 3 or 5 to
10 or more.
Codes :
(A) Only Statement – I is correct
(B) Only Statement – II is correct
(C) Both Statement – I and II are correct
(D) Both Statement – I and II are incorrect

15. Which one of the following is not a labour law related to wages?
(A) The Workmen’s Compensation Act, 1923
(B) The Payment of Bonus Act, 1965
(C) The Payment of Wages Act, 1936
(D) The Minimum Wages Act, 1948

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 Management Paper - II (July 2016)

16. Match the items of List-I with the items of List-II :

List-I List-II
a. Net present value i. Number of years required to recover the
original cash outlay invested in a project.
b. Payback period ii. It is the rate of return which equates the
present value of anticipated net cash flows
with the initial outlay.
c. Internal rate of return iii. It is found out by dividing the average after-
tax profit by the average investment.
d. Accounting rate of return iv. It is the difference between the present value
of cash inflows and present value of each
outflows.
Codes :
a b c d
(A) iv iii ii i
(B) iii i iv ii
(C) iii iv i ii
(D) iv i ii iii

17. An employee borrowed a 3 year loan of ` 10,000 at 9% from his employer to buy a motorcycle.
If employer requires three equal end-of-year repayments, then the annual instalment will be
________.
(A) ` 3,633 (B) ` 3,951
(C) ` 3,333 (D) ` 4,233

18. Match the items of List-I with the items of List-II :

List-I List-II
a. M.M. Hypothesis with out taxes i. The cost of debt and cost of equity are
assumed to be independent to the capital
structure.
b. Net operating income approach ii. In the absence of taxes a firm’s market value
and the cost of capital remain invariant to the
capital structure changes.
c. M.M. Hypothesis under corporate iii. The cost of equity is assumed to increase
taxes linearly with leverage.
d. Net income approach iv. The value of the firm will increase with debt
due to the deductibility of interest charges for
tax computations and the value of the levered
firm will be higher than the unlevered firm.
Codes :
a b c d
(A) ii iii iv i
(B) ii i iv iii
(C) i ii iii iv
(D) iii iv i ii
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 Management Paper - II (July 2016)

19. Explicit Resale Price Valuation method pre-supposes that an investor keeps the share only for
few years and eventually sells the shares. The value of the share, therefore, depends upon
which of the following?
(I) : The stream of dividends expected during investor’s ownership.
(II) : The price expected to be realized whenever investor sells the share.
Codes :
(A) (I) is true, but (II) is false (B) (I) is false, but (II) is true
(C) Both (I) and (II) are true (D) Both (I) and (II) are false

20. It is an act of acquiring effective control by one company over assets or management of another
company without any combination of companies?
(A) Consolidation (B) Acquisition
(C) Merger (D) None of the above

21. Out of the following, identify the key constituents for performance marketing of Holistic Marketing
dimensions :
(a) Customers (b) Brand and Customer equity
(c) Employees (d) Ethics
(e) Environment (f) Sales revenue
(g) Financial community
Codes :
(A) (a), (b), (c) and (d) (B) (b), (d), (e) and (f)
(C) (c), (e), (f) and (g) (D) (a), (c), (f) and (g)

22. Which one of the following is a potential drawback of multibranding?

(A) The company’s resources may be spread over too many brands
(B) Consumers may become confused about the image of the main brand
(C) An over-extended brand name might lose its specific meaning for consumers
(D) Different product features can appeal to consumers with different buying motives

23. When a firm improves the quality and increases the price of a product in relation to a competitor
making a price reduction, the firm is ______________.
(A) moving its brand into a higher price-value position
(B) changing its target market
(C) moving its brand into a less competitive position
(D) adversely positioning its product

24. Which one of the following explains “the knowledge and courtesy of employees and their ability
to convey trust and confidence”?
(A) Empathy (B) Responsiveness
(C) Reliability (D) Assurance

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 Management Paper - II (July 2016)

25. Match the items of List-I with the items of List-II :

List-I List-II
a. Rich-media ads i. Online ads that appear between screen
changes on a website, especially while a new
screen is loading.
b. Pop-ups ii. Display ads that use eye-catching techniques
such as float, fly, and snapback.
c. Interstitials iii. Ads that users can block through the use of
applications developed by web browser
providers
Codes :
a b c a b c
(A) i ii iii (B) ii i iii
(C) ii iii i (D) iii i ii

26. Statement – I : Operation research is the application of scientific methods to the study of
alternatives in a problem situation with a view to providing qualitative basis for arriving at an
optimum solution in terms of goal sought.
Statement – II : Operation research is a quantitative commonsense embracing observation,
experiment and reasoning.
Codes :
(A) (I) is correct but (II) is incorrect (B) Both (I) and (II) are correct
(C) Both (I) and (II) are incorrect (D) (II) is correct but (I) is incorrect

27. Match the items of List-I with List-II :

List-I List-II
a. PERT i. Strategies
b. CPM ii. Events
c. Game theory iii. Network
Codes :
a b c a b c
(A) i ii iii (B) ii iii i
(C) iii ii i (D) iii i ii

28. Statement – I : X -chart, np-chart and R-chart are the techniques used for product control under
Statistical Quality Control.
Statement – II : Operating characteristic curve helps determine whether a particular acceptance
sampling plan meets both the product’s and the consumer’s risk requirements.
(A) Both the statements are correct
(B) Both the statements are incorrect
(C) Statement – I is correct while Statement – II is incorrect
(D) Statement – I is incorrect while Statement – II correct

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 Management Paper - II (July 2016)

29. Statement – I : When there are a large number of decision variables (more than three) and
constraints, iterative mathematical procedures like simple method can be used for product-mix
decisions.
Statement – II : Monte Carlo is an approach for simulating the probability distribution by associating
and then selecting random numbers.
(A) Both the statements are correct
(B) Both the statements are incorrect
(C) Statement – I is correct while Statement – II is incorrect
(D) Statement – I is incorrect while Statement – II is correct

30. In the context of work study, an element is rated as 120% and the actual readings (in minutes)
are as under :
0.05, 0.06, 0.05, 0.05, 0.05
0.06, 0.06, 0.05, 0.06, 0.06
What is the normal time for the element ?
(A) 0.055 minutes (B) 0.060 minutes
(C) 0.066 minutes (D) 0.052 minutes

31. Which of the following sentences are true?

(i) The classical approach to probability theory requires that the total number of possible
outcomes be known or calculated and that each of the outcomes be equally likely.
(ii) A marginal probability is also known as unconditional probability.
(iii) For three independent events, the joint probability of the three events,
P(ABC) = P(A) × P(B/A) × P(C/AB)
(iv) Two events are mutually exclusive, exhaustive and equally likely, the probability of either
event A or B or both occurring P(A or B) = P(A) + P(B)
Codes :
(A) (i), (ii), (iii) and (iv) are true (B) (iii) and (iv) are true
(C) (i), (ii) and (iv) are true (D) (i) and (iii) are true

32. Match the items of List-I with the items List-II and indicate the code of correct matching in
connection with probability distributions :
List-I List-II
(Mean and standard deviation) (Probability distributions)

a. np, npq i. Normal distribution

b. ,  ii. Binomial distribution

c. 0, 1 iii. Poisson distribution
Codes :
a b c a b c
(A) i ii iii (B) iii i ii
(C) iii ii i (D) i iii ii

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 Management Paper - II (July 2016)

33. A researcher wants to test the significance of the difference of the average performance of more
than two sample groups drawn from a normally distributed population, which one of the following
hypothesis-testing tests is appropriate?
(A) Chi-square test (B) F-test
(C) z-test (D) t-test

34. Match the items of List-I with the items of List-II and indicate the code of their correct matching
with regard to correlation and regression analysis :
List-I List-II

y
a.  xy i. Covariance between X and Y
x

(X  X)(Y  Y)
b. n·  x ·  y ii. Standard error of coefficient of correlation

(X  X)(Y  Y)
c. iii. Regression coefficient of Y on X variable
n

1  2
d. iv. Karl Pearson’s coefficient of correlation
n
Codes :
a b c d a b c d
(A) i ii iii iv (B) ii i iv iii
(C) iii ii iv i (D) iii iv i ii

35. Match the items of List-I with List-II

List-I List-II
a. Stock files that are placed in i. Daily report
warehouse as a record
b. Process of managing goods in ii. Intranet
most sensible way
c. Management information system iii. Master file
d. Log-in allowed to only internal iv. Stock control
people
Codes :
a b c d a b c d
(A) iii iv i ii (B) iv iii ii i
(C) iii i iv ii (D) i ii iii iv

36. The highly competitive industries, particularly in the early stage of product life cycle, follow which
one of the following strategies?
(A) Functional area support strategy (B) Expansion strategy
(C) Diversification strategy (D) Downsizing strategy

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 Management Paper - II (July 2016)

37. When highly interrelated variables exist or when it is necessary to choose from several plausible
alternatives, which one of the following should be strategist integrate in decision making?
(A) Analysis of facts (B) Intuition
(C) Competitor’s strategy (D) Global perspective

38. Assertion (A) : In an industrial structure, the acquisition of an existing firm in the industry might
be a better move than starting-up a new venture.
Reasoning (R) : There is evidence that internal development might be preferable to acquisition
because of differences between culture and shared valued.
Codes :
(A) Both (A) and (R) are correct and (R) is the correct explanation of (A)
(B) Both (A) and (R) are correct, but (R) is not the right explanation of (A)
(C) (A) is correct, but (R) is not correct
(D) (R) is correct, but (A) is not correct

39. Consider the following statements with reference to Porter’s five forces model of competitive
analysis :
(a) As rivalry among competing firm intensifies, generally industry profits decline or in few
cases, industry becomes inherently unattractive.
(b) Whenever new firms are allowed to enter a particular industry, the intensity of
competitiveness among firms becomes haphazard.
(c) Generally competitive pressures arising from the substitute products decrease as the
relative price of substitute products decline.
(d) Bargaining power of supplies affects the intensity of competition.
Codes :
(A) Statements (a) and (b) are false, others are true
(B) Statements (a) and (b) are true, others are false
(C) Statements (b), (c) and (d) are true, but (a) is false
(D) All the statements are true

40. Match the items given in List-I with the items of List-II :
List-I List-II
a. Vision i. General statements of the company’s intent.
b. Mission ii. Desired future position of the company
c. Goals iii. Operationalizing of mission
d. Objectives iv. Vivid idealised description of a desired
outcome
Codes :
a b c d a b c d
(A) iv i ii iii (B) i ii iii iv
(C) ii iii i iv (D) iii iv ii i

41. Statement – I : VED analysis is meant for project maximization.

Statement – II : Network analysis is independent of planning process.
Codes :
(A) (I) is correct but (II) is incorrect (B) (II) is correct but (I) is incorrect
(C) Both (I) and (II) are correct (D) Both (I) and (II) are incorrect

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 Management Paper - II (July 2016)

42. Match the items of List-I with List-II :

List-I List-II
a. A promotion assistance for i. SRUTI
development of Khadi
b. A scheme of fund of registration ii. ISEC
of traditional industries
c. Interest subsidy eligibility for all iii. MDA
institutions registered under KVIC
Codes :
a b c a b c
(A) iii i ii (B) iii ii i
(C) i iii ii (D) i ii iii

43. Under the Sick Industrial Companies (Special Provisions) Act, 1985, the public sector companies
were covered from which year?
(A) February, 1994 (B) January, 1990
(C) December, 1991 (D) None of the above

44. Industrial Reconstruction Bank of India (IRBI) which was reconstituted into a full fledged all
purpose developmental financial institution with effect from March 27, 1997 was renamed as
___________.
(A) Small Industrial Development Bank of India
(B) Industrial Investment Bank of India Lid.
(C) Industrial Finance Corporation of India
(D) Board of Industrial and Financial Reconstruction

45. Non-available of required project planning capability is due to ___________

(A) Poor general management
(B) Poor professional management
(C) Poor entrepreneurial management
(D) Poor marketing management

46. Statement – I : Ethical decision making is a very tough prospect in this ‘dog-eat-dog’ world. All
will have to fall in and play fair.
Statement – II : In this age of liberalisation and globalisation, the old dirty games and ethical
conduct will no longer be accepted.
Codes :
(A) Statement (I) and (II) both are incorrect
(B) Statement (I) and (II) both are correct
(C) Statement (I) correct, (II) incorrect
(D) Statement (I) incorrect, (II) correct

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 Management Paper - II (July 2016)

47. The three basic principles of business ethics are shown by which one of the following?
(A) Utilitarianism, social commitment and reputation
(B) Utilitarianism, societal reputation and justice
(C) Utilitarianism, principle of right and principle of justice
(D) Principle of right, principle of justice and social commitment

48. Gandhian concept of social responsibility is denoted by which one of the following?
(A) Social commitment concept (B) Trusteeship concept
(C) Sustainable development concept (D) Welfare concept

49. CII Committee on Corporate Governance with SEBI as the Custodian of investors constituted on
7th May 1999 is known by which one of the following ?
(A) Dr. J.J. Irani Committee (B) Kumar Mangalam Birla Committee
(C) Narayan Murti Committee (D) Working group on the Companies Act

50. Which one of the following denotes good choices of ethical decision making?
(A) (i) take choice seriously
(ii) good decisions are both ethical and effective
(iii) discernment and discipline
(B) (i) ethical actions
(ii) discernment and discipline
(iii) stage of social welfare
(C) (i) take choice seriously
(ii) improve ethical decision
(iii) discernment and discipline
(D) (i) good decision are both ethical and effective
(ii) take choice seriously
(iii) ethical actions

ANSWER KEY (Not an offical answer key)

1 2 3 4 5 6 7 8 9 10
B B A A A C D A D B
11 12 13 14 15 16 17 18 19 20
D B D A A D B C C B
21 22 23 24 25 26 27 28 29 30
B A A D C B B A A C
31 32 33 34 35 36 37 38 39 40
C X B D A B A B B C
41 42 43 44 45 46 47 48 49 50
D A C B A C C B B B
X - There may be correction in option.

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