A

22105 120 MINUTES

1. Decisional role of a manager is----.
A) Monitor B) Spokes person
C) Figurehead D) Disturbance handler

2. Match List I with List II

a. F.W.Taylor 1. Father of human relations management
b. Henry Fayol 2. Need hierarchy Theory
c. Elton Mayo 3. Father of Scientific management
d. Abraham Maslow 4. Principles of Management

A) a-4, b-3, c-1, d-2 B) a-3, b-4, c-1, d-2

C) a-3, b-4, c-2, d-1 D) a-2, b-4, c-3, d-1

3. Which of the items given below are included in the Retrenchment strategy?
A) Mergers B) Turnaround
C) Liquidation D) Divestment

4. In Organisational Behaviour, Mutuality of interest concept depicts:

A) Governed by social as well as psychological laws
B) People are to be treated differently from other factors of production
C) People are individually different
D) Organisation needs people and people also need organisation

5. Which one of the following comes under Interpersonal behavior?

A) Attitude B) Leadership
C) Learning D) Motivation

6. Match List I with List II

a. Human Resource Approach 1. There is no best way to motivate and
lead people
b. Contingency Approach 2. Way of looking at the organisation in
totality
c. System Approach 3. Efficiency in optimizing resource
utilization
d. Productivity Approach 4. People are the central resources

A) a-4, b-3, c-1, d-2 B) a-3, b-4, c-1, d-2

C) a-4, b-1, c-2, d-3 D) a-2, b-4, c-3, d-1

7. Individual to be lazy, non-creative and in need of constant prodding according to:

A) X Theory B) Y Theory C) Z Theory D) Q Theory
8. Group development stages undergone:
A) Norming-Storming-Forming-Performing-Adjourning
B) Storming-Forming-Norming-Performing-Adjourning
C) Forming-Storming-Norming-Performing-Adjourning
D) Storming-Norming-Forming-Performing-Adjourning

9. Shift opinion to create group harmony by:

A) Encouragers B) Expeditors C) Harmonisors D) Compromisers

10. It is the degree at which members are attached to and motivated to remain part of a
group.
A) Polarization B) Cohesiveness C) Co-operation D) Congruence

11. Industry Life cycle stages:

A) Embryonic-Growth-Shakeout-Maturity-Decline
B) Embryonic-Shakeout-Growth-Maturity-Decline
C) Introduction-Growth-Maturity-Saturation-Decline
D) Introduction-Development-Maturity-Saturation-Decline

12. Bargaining power of a buyer is not powerful when:

A) The suppliers are in more number
B) The cost of changing supplier is not much
C) The purchased item is not important to the final quality or price of buyer’s
product.
D) Substitutes are not available

13. A----- is a type of strategy whereby a company enters into one or more unrelated
industries.
A) Strategic Alliance B) Conglomerate Diversification
C) Concentration Strategy D) Concentric Diversification

14. A strategy which is not a part of Grand strategy:

A) Transnational Strategy B) Pause Strategy
C) Growth Strategy D) Retrenchment Strategy

15. Aggregate demand (AD) equals:

(Where C = Consumer Spending), I = Investment, G = Government Spending
X = Expenditure on exports, M = Expenditure on Imports)

A) AD = C+I+G+(X+M) B) AD = C+I+G+(X-M)
C) AD = C+G-I+(X+M) D) AD = C+G-I+(X-M)

16. Which of the following element is not a part of the Micro Environment?
A) Competitors B) Suppliers
C) Legal Framework D) Customers

17. The Planning Commission of India was set up in

A) April 1950 B) March 1950 C) April 1956 D) March 1956

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18. The process of ownership of privately owned assets into public ownership can be referred
to as:
A) Privatization B) Disinvestment
C) Nationalization D) Deregulation

19. Per Capita Income is derived by dividing national income of a country by

A) Real Income B) Gross Domestic Product
C) Human Development Index D) Population

20. The research paper that brought Bitcoin to the world:

A) Black Paper B) Red Paper
C) White paper D) Blue Paper

21. GATT’s ------round lead to the birth of WTO:

A) Tokyo B) Uruguay C) Torquay D) Geneva

22. Which of the following are referred as Brettonwood twins?

A) IMF and WTO B) IMF and IBRD
C) IMF and GATT D) IBRD and IDA

23. When feedback and control elements are attached to any system to make it self-
regulating and self-monitoring it is known as:
A) Information System B) Cybernetic System
C) Open System D) Closed System

24. Black box in a system indicate

A) Boundary not defined B) Processes not defined
C) Interface not defined D) Integration not defined

25. Which of the following statements are true regarding the term ‘balance?’
1. The equality of a control account in the general ledger and the total balance of
all accounts in the subsidiary ledger.
2. The equality of total debits and total credits of all accounts in the general
ledger in the preparation of a Trial balance
3. The difference between total debits and total credits in an account

A) 3 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3

26. A bill drawn and accepted for mutual help:

A) Accommodation Bill B) Trade Bill
C) Usance Bill D) Clean Bill

27. From the following information select the correct sequence of Accounting cycle:
1. Posting to Ledgers 2. Preparation of final accounts
3. Preparation of Trial Balance 4. Journalizing the transactions
5. Passing reverse entries 6. Passing closing entries
7. Passing of adjusting entries

A) 4, 1, 3, 6, 7, 5, 2 B) 4, 1, 3, 7, 2, 6, 5
C) 4, 1, 3, 7, 6, 5, 2 D) 4, 1, 2, 3, 5, 6, 7

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28. An example of a Valuation Account:
A) Salary B) Advertisement
C) Depreciation D) Telephone charges

29. Purchase day book is maintained for…

A) Recording cash purchases
B) Recording credit purchases
C) Recording purchase returns
D) All of the above

30. An expression of gratitude rather than a payment for the work done:
A) Legacy B) Membership Fee
C) Subscription D) Honorarium

31. Subscription received during the Year 2021-Rs.7000:

Subscription outstanding at the beginning of 2021-Rs.1400
Subscription outstanding at the end of 2021-Rs.1600
The amount of subscription credited to Income and Expenditure account will be
A) 10000 B) 8400 C) 7200 D) 8600

32. Which of the following statement(s) is/are correct?

1. Prudence concept attempts to state the lowest likely value of the assets and
profits and the highest likely value of any loss or liabilities incurred
2. Substance over form an accounting concept whereby transactions and other
events are accounted for and presented in accordance with their legal form
rather than their economic reality.

A) Both 1 and 2 B) 1 only

C) 2 only D) Neither 1 nor 2

33. Which of the following item is not shown in the Balance sheet?
A) Fixed Assets B) Land and Building
C) Bank Overdraft D) Opening stock

34. Gross profit equals:

A) Sales less Purchase
B) Net sales less cost of goods sold
C) Net profit less expense
D) Sales less purchase plus opening stock

35. A part of Share capital which will be called only at the time of winding up of a
company:
A) Calls-up Capital B) Uncalled Capital
C) Reserve Capital D) Calls in Arrear

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36. When the number of shares applied for exceeds the number of shares issued, then the
Company can:
A) Totally reject some of the application
B) Make proportionate allotment to all the participants
C) Reject some of the application in full and make proportionate allotment in
respect of the others.
D) All of the above

37. Prithvi Limited purchased a machinery from Arjun Ltd for a value of Rs.9,90,000.
The consideration was paid by issue of 10% debentures of Rs.100 each at a discount of
10%. Number of debentures issued will be:
A) 9900 B) 11000 C) 10000 D) 10500

38. Mr. Anandhan, a holder of 20,000 shares for Rs.10 each has paid Rs.2 on application
and Rs. 3 on allotment. He did not pay Rs.4 on first call. His shares were forfeited
subsequently after first call. Then shares were re-issued at Rs.7 for Rs.9 paid up. Capital
reserve will be:
A) 60000 B) 80000 C) 100000 D) 40000

39. Shares were issued at premium and premium is received by the company. What will
be the treatment of premium at the time of forfeiture?
A) It will be debited B) It will be credited
C) No treatment D) None of these

40. ‘Ex post facto’ research also known as ------ research.

A) Exploratory B) Descriptive
C) Formulative D) Fundamental

41. Which of the following statement(s) is/are correct?

1. To gain familiarity with a phenomenon is termed as exploratory research.
2. To test a casual relationship between variables are known as hypothesis testing
research.

A) Both 1 and 2 B) 1 only C) 2 only D) Neither 1 nor 2

42. ------ sampling is a probability sampling.

A) Simple Random B) Deliberate
C) Convenience D) Judgment

43. The technique used to estimate consumption of the basket of goods at the consumer
level:
A) Store audit B) Pantry audit
C) Consumer panel D) Warranty card

44. The process of assigning numerals or other symbols to answers:

A) Classification B) Coding
C) Editing D) Analysis

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45. A positional average is:
A) Mean B) Median
C) Mode D) Geometric mean

46. If the curve is relatively more peaked than the normal curve, then it said to be:
A) Leptokurtic B) Skewness
C) Platykurtic D) None of these

47. Sample error equals:

A) Frame error + Chance error + Measurement error
B) Frame error + chance error + Non Sampling error
C) Frame error + Chance error +Response error
D) Frame error + Chance error + Standard error

48. Type I error is denoted by:

A) α B) β C) 1- α D) 1- β

49. Chi-square test can be used for:

A) Test the goodness of fit B) Test the association between two attributes
C) Test the homogeneity D) All of the above

50. Eigen value is related to:

A) MDA B) ANACOVA
C) Factor analysis D) Content analysis

51. Level of significance @ 1% indicates:

A) Type I error can be reduced about 1 chance out of 100
B) Type II error can be reduced about 1 chance out of 100
C) Type I error can be reduced about 0.001%
D) Type II error can be reduced about 0.001%

52. A quantitative variable can be transferred to a categorical variable called

A) Nominal variable B) Dummy variable
C) Ordinal variable D) Preference variable

53. The value of one variable increase, then the value of other variable tends to decrease,
then correlation coefficient will be
A) Negative B) Positive C) Zero D) Greater than 1

54. In LPP, simplex method helps the manager to identify:

A) Redundant constraints B) Unbounded solution
C) Multiple solution D) All of the above

55. Critical path:

A) Considering all the path in a project
B) Path with the largest time
C) Path with the shortest time
D) Path with non-critical activity

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56. Which of the following is a relative measure of dispersion?
A) Variance B) Standard deviation
C) Co-efficient of variation D) Median

57. A beta coefficient of a stock price greater than 1 indicates:

A) Less volatility B) Low risk
C) High risk D) No risk

58. Many of the best known American retailers like KFC, Mc Donald’s have expanded
globally using:
A) Direct investment B) Franchising
C) Joint venture D) Strategic alliance

59. Which of the following element is not considered in profit maximization objective?
A) Networth B) Wealth
C) Timing of return D) Profit

60. The proportion of profits distributed as dividend is called:

A) Retention ratio B) Dividend-payout ratio
C) Price-earnings ratio D) Dividend yield ratio

61. Which of the following statement(s) is/ are incorrect?

1. The Sinking Fund Factor is a reciprocal of Compound Value of an Annuity factor
2. The Capital Recovery factor is a reciprocal of the Present Value of Annuity factor

A) 1 only B) 2 only
C) Both 1 and 2 D) Neither 1 nor 2

62. Which of the following statement is incorrect in relation with Book value?
A) Book value is an accounting concept
B) Book value reflects the real value
C) Book value may include intangible assets at acquisition cost minus amortized value.
D) The difference between the book value of assets and liabilities is equal to
Shareholder’s Fund

63. Overvalued shares has:

A) Market price higher than the Shares present value
B) Market price less than the Shares Present Value
C) Market price reflects the present value of shares
D) None of the above.

64. Which of the following items comes under flotation cost?

A) Legal fees B) Brokerage
C) Underwriting Commission D) All of the above

65. Which of the following element is excluded while calculating cost of total debt?
A) Creditors B) Bank loan
C) Debenture D) None of these

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66. Which of the following is incorrect?
A) Cash flow = Revenue -Expenses –Capital Expenditure
B) Cash flow = Profit +Depreciation – Capital Expenditure
C) Cash flow = Revenue- Expenses-Depreciation
D) Cash flow = (Revenue-Expenses-Depreciation) + Depreciation - Capital
Expenditure

67. Which of the following item is taken for the preparation of Cost Sheet?
A) Drawing office salary B) Charitable donations
C) Goodwill written off D) Discount allowed

68. Cost accounting is useful for

A) Only industrial concerns in the private sector
B) All industrial concerns but not for service organisations
C) All profit seeking concerns provided they are not subject to perfect
competition.
D) Anyone using scarce resources

69. In a manufacturing company provides the information related to its Process I.

Material consumed - 1500 units
Normal loss is 12% of input
The net products in the process I -1100 units.
Abnormal units will be

A) 180 B) 220 C) 400 D) 270

70. If the worker completes the job at the less than standard time, he will be paid wages
for actual hours taken plus bonus at the rate of 50% of the wage for time saved
according to:
A) Halsey Premium Plan B) Rowan Plan
C) Gann Task and Bonus Plan D) Emerson Efficiency Plan

71. Electricity expenses is allocated on the basis of:

A) Horse power B) Area occupied
C) Light point D) Number of workers

72. Bin card doesn’t show:

A) Name of Material B) Quantity of Material
C) Value of Material D) Balance of Material

73. Cost of goods sold is Rs.49,600 and profit is 20% on sales. Sales will be:
A) Rs.59520 B) Rs.62000
C) Rs.61000 D) Rs.59600

74. The cost of Abnormal idle time is transferred to

A) Cost Sheet B) Costing Profit and Loss Account
C) Profit and Loss Account D) Process Account

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75. Which among the following is a technique of cost control?
A) Job Costing B) Contract Costing
C) Standard Costing D) Marginal Costing

76. Quick assets doesn’t include

A) Sundry Debtors B) Stock
C) Marketable securities D) None of these

77. Match List I with List II

.
a. Hotel 1. Per ton kilometer
b. Goods Transport 2. Per bed per day
c. Passenger Transport 3. Per room per day
d. Hospital 4. Per passenger kilometer

A) a-1, b-3, c-4, d-2 B) a-3, b-2, c-4, d-1

C) a-3, b-4, c-1, d-2 D) a-3, b-1, c-4, d-2

78. Carriage outward is an example of ----- expenses.

A) Direct B) Office C) Selling D) Factory

79. Which of the following is not a Preventive cost?

A) Medical Service
B) Pension Scheme
C) Transportation Cost
D) Accident cost due to inexperience

80. An example for application of accrual concept:

A) Charging of depreciation
B) Provision created against doubtful debts
C) Writing off of preliminary expenses
D) Recognition of salary outstanding

81. State whether the following statements are true or false:

1. Income and Expenditure account is a real account.
2. Receipts and Payment account begins with an opening balance.

A) 1 is true and 2 is false B) 1 is false and 2 is true

C) Both 1 and 2 are true D) Both 1 and 2 are false

82. Given that the average annual profit available to equity shareholders is Rs. 2,00,000
and the normal return expectation of the shareholders is 12 % with an equity base of
Rs. 10,00,000, what will be the value of goodwill computed based on 3 years
purchase of super profit?
A) Rs. 80,000 B) Rs. 1,60,000
C) Rs. 2,00,000 D) Rs. 2,40,000

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83. State whether the following statements are true or false:
1. A new company needs to be formed, in the case of external reconstruction.
2. Liabilities which are not taken over by the new company are not transferred to
realization account.

A) 1 is true and 2 is false B) 1 is false and 2 is true

C) Both 1 and 2 are true D) Both 1 and 2 are false

84. Unwritten off portion of discount on issue of debentures in the books of vendor
company is transferred to:
A) Realisation account
B) Equity shareholders’ account
C) Purchasing company account
D) Debenture holders’ account

85. A system of maintain inventory records on a continuous basis is:

A) Just in time
B) Continuous stock taking
C) Perpetual inventory control system
D) ABC analysis

86. Which one of the following is not part of conversion cost?

A) Direct materials B) Direct labour
C) Direct expenses D) Factory overheads

87. State whether the following statements are true or false:

1. Under-absorption of fixed overheads affirms the existence of idle plant
capacity.
2. Variable overhead is a period cost.

A) 1 is true and 2 is false B) 1 is false and 2 is true

C) Both1 and 2 are true D) Both1 and 2 are false

88. If cost of sales of a product is Rs. 450 and profit as a percentage of selling price is 10 %,
what will be its selling price?
A) Rs. 750 B) Rs. 600 C) Rs. 500 D) Rs. 475

89. Pick the one which is a by-product:

A) Coal tar B) Diesel
C) Aviation Spirit D) Petrol

90. Which one of the following is not a cost of control technique?

A) Standard Costing B) Value Analysis
C) Process Costing D) Budgetary Control

91. Which one of the following doesn’t affect cash flows connected with operating
activities?
A) Collection from customers B) Payment of suppliers
C) Interest paid on Debentures D) Power bills paid

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92. Which one of the following is a non-fund item?
A) Redemption of debentures
B) Dividend paid
C) Machinery purchased by issue of shares
D) Buy back of equity shares

93. An enterprise reporting a profit of Rs. 80,000 is currently selling 1,00,000 units. If it
can enhance its sales level to 1,25,000 units:
A) its total contribution rises by an amount greater than its profit
B) its total contribution rises by an amount less than its profit
C) total contribution and profit rise by an equivalent amount
D) total contribution remains constant

94. Given that margin of safety sales as Rs. 2,00,000 and PV ratio is 40 %. What will be
the profit made by the enterprise?
A) Rs. 60,000 B) Rs. 80,000 C) Rs. 1,20,000 D) Rs. 1,60,000

95. The concept ‘MBO’ was propounded by:

A) Vroom B) Elton Mayo
C) Peter F. Drucker D) Herzberg

96. Pick the one which is a single use plan:

A) Programme B) Budget C) Policy D) Procedure

97. Group decision making process is facilitated by which one of the following
technique?
A) Queuing theory B) Linear Programming
C) Brain storming D) Decision theory

98. State whether the following statements are true or false:

1. One can delegate authority but not responsibility.
2. Decentralisation is the systematic and consistent reservation of authority at
central points within an organization.

A) 1 is true and 2 is false B) 1 is false and 2 is true

C) Both 1 and 2 are true D) Both 1 and 2 are false

99. While communicating, pre-mature evaluation is part of:

A) Organisational barrier B) Physiological barrier
C) Semantic barrier D) Psychological barrier

100. ETOP stands for:

A) Environmental Training on Operational Planning
B) Environmental Threat and Opportunity Profile
C) Extended Technology for Optimum Productivity
D) Ecosystem for Technology Oriented Profiling

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101. Which one of the following can be treated as a weakness while assessing the internal
environmental capabilities?
A) Higher debt exposure B) Breadth of product line
C) Outsourcing support D) Economies of scale

102. The investment made by the MNC, Nissan in India can be termed as:
A) FII B) FDI C) BoP D) CAD

103. In India, strength in balance of payment position has resulted by:

A) Low trade deficits
B) Low fiscal deficits
C) Progressive accumulation of foreign exchange reserves
D) Enhancement of FDI

104. State whether the following statements are true or false:

1. The Industrial Policy Resolution 1956 emphasised the role of small scale
industries in the development of the national economy and providing
employment.
2. The requirement of phased manufacturing programme was discontinued in
industrial policy, 1991 for all new projects.

A) 1 is true and 2 is false B) 1 is false and 2 is true

C) Both 1 and 2 are true D) Both 1 and 2 are false

105. The policy of the Government pertaining to public revenue, public expenditure and
public debt is known as:
A) Fiscal policy B) Trade policy
C) EXIM policy D) Investment policy

106. The rate at which commercial banks borrow money from RBI is known as:
A) Bank rate B) Repo rate C) SDR D) CDR

107. State whether the following statements are true or false:

1. Currency futures are traded on an exchange in standardized form and fixed
quantity.
2. If the real interest rate in a country is low, then the currency of that country is
weak.
A) 1 is true and 2 is false B) 1 is false and 2 is true
C) Both 1 and 2 are true D) Both 1 and 2 are false

108. Which one of the following is not a characteristic feature of management information
system?
A) Interaction B) Independence
C) Integration D) Interdependence

109. Decisions that are repetitive, routine and having a definite procedure for handling
them are known as:
A) Structured decisions B) Unstructured decisions
C) Centralised decisions D) Decentralised decisions

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110. ERP as part of an IT strategy of an enterprise stands for:
A) Economic Resource Procurement
B) Experimental Resource Planning
C) Energy Recycling Plan
D) Enterprise Resource Planning

111. The decision relating to the choice of proportion of debt and equity sources of
financing is known as:
A) Capital budgeting B) Capital structure
C) Capitalisation D) Capital formation

112. Identify one such instance of reporting a higher ratio is not recommendable for a business
enterprise from the following:
A) ROE B) Asset turnover ratio
C) Operating ratio D) EPS

113. Solvency analysis is undertaken to know:

A) Liquidity ratio B) Long term repayment potential
C) Profitability D) Business risk

114. Benefit cost ratio is also known as:

A) NPV B) IRR C) PI D) ARR

115. A project requires an initial investment of Rs. 10,00,000. The estimated annual cash
flows from the project are Rs. 3 lakh (1st year); Rs. 5 lakh (2nd year); Rs. 4 lakh (3rd
year) and Rs. 2 lakh (4th year). What will be its payback period and post payback return?
A) 2 years and Rs. 4 lakh B) 2 years and Rs. 2 lakh
C) 3 years and Rs. 4 lakh D) 3 years and Rs. 2 lakh

116. The risk that can be eliminated through diversification is known as:
A) Systematic risk B) Unsystematic risk
C) Financing risk D) Operating risk

117. Given that debt collection period as 2 months, inventory turnover 3 months, and
creditors payment period as 1 month. What will be the cash cycle period of the entity?
A) 5 months B) 6 months C) 4 months D) 2 months

118. The conceptual framework in which research is built up:

A) Sampling plans B) Research design
C) Research hypothesis D) Research interpretation

119. The true test for research finding lies in its:

A) Practicability B) Objectivity
C) Creativity D) Originality

120. The OR technique dealing with the minimization of waiting time and servicing cost is:
A) Game theory B) Queuing theory
C) Simulation D) Integer programming

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